CONTENTS
Message from the Chairman
Key Performance Table
About Estun
Index Table
Responsibility 2024
About This Report
Sustainable DevelopmentManagement Strategy
Responsibility Topic
Sustainable Development Management
Stakeholder Communication
Robotics + Education: EmpoweringEducational Innovation and TransformationMaterial Issues Analysis
Environmental Management
Addressing Climate Change
Resource Management
Pollution Prevention and Control
Noise Management
Biodiversity Protection
Enhancing Corporate Governance
Human Capital Development
Risk and Compliance Management
Supply Chain Management
Upholding Business Ethics
Community Engagement and Philanthropy
Information Security and Privacy Protection
Creating Industrial Value
Innovation-Driven Development
Professional Quality Service
Future ChapterActivating New Quality Productive ForcesActivating New Quality Productive Forces
Building a Sustainable Future TogetherBuilding a Sustainable Future TogetherEnvironmental Chapter
| 17 | 57 |
Social ChapterAdvancing Together on a New JourneyAdvancing Together on a New Journey
Governance ChapterPromoting High-Quality DevelopmentPromoting High-Quality Development
| 41 | 69 |
Message from the ChairmanThe year 2024 marks the 20th anniversaryof the United Nations Global Compact'sintroduction of the ESG (Environmental,Social, and Governance) concept. Embracingsustainable development is not only a corporateresponsibility but also a mission entrusted to usby our times. We have adhered to our corporatemission of "Enjoy your life from automation:
Smarter Manufacturing, Greater Quality, BetterLife, Greener World" since our establishment,advancing the industrial chain toward high-end autonomous manufacturing, green andlow-carbon development, and intelligentefficiency-driven transformation, while strivingto contribute Estun's strength to the sustainableupgrade of a wide range of industries.Strengthening Leadership, EmbracingInnovation. Over the past year, in the faceof global economic complexity and fierceindustry competition, we stayed firmlyaligned with our core strategy: “ALL Made byESTUN.” Driven by our “Transformation 2025”initiative, we accelerated the developmentof new quality productive forces, leveragingcutting-edge technologies to build a completeintelligent manufacturing ecosystem. This haspowerfully propelled the deep evolution ofsmart manufacturing and enabled us to leadthe wave of intelligent transformation in themanufacturing industry. In 2024, we played akey role in powering global lighthouse factories,while the Company's Product ReliabilityLaboratory achieved CNAS accreditation.This milestone reflects Estun's continued
Chairman of Estun Automation Co., Ltd.
Wu Bo
commitment to excellence in quality andstrengthening its product competitiveness.Laying a Solid Foundation, Advancing withStability. We recognize that sound corporategovernance is the cornerstone of high-qualitydevelopment. We have continuously refinedour governance framework, strengthenedinternal control, compliance management,as well as comprehensive risk management,while upholding business ethics and codesof conduct. In investor relations, we arecommitted to enhancing information disclosure,expanding communication channels, andsafeguarding the legitimate rights and interestsof investors. We have also built a robustinformation and data security system to ensurethe protection of company assets and digitalresources. To elevate our ESG governancecapabilities, we have proactively advancedthe construction of our ESG managementsystem and issue-specific governancemechanisms, steadily progressing along thepath of sustainable development. Our effortshave also been widely recognized. In 2024,Estun received the highest AAA rating in theESG assessment by CSI Index, an AA ratingby Sino-Securities Index, and an A rating byWind. The Company was also honored withthe 2024 Best ESG Practice Award for ListedCompanies, further solidifying its commitmentto sustainable development.
Pursuing Environmental Sustainability,Accelerating Low-Carbon Development. We
have reinforced environmental management,
enhanced pollution control, and minimizedthe environmental impact of our operations,achieving a win-win outcome betweeneconomic growth and ecological protection.In response to the global challenge of climatechange, we actively support China’s “dualcarbon” goals, strengthen our ability to identifyclimate-related risks and opportunities,and integrate climate risk management intoour strategic planning. We actively seizethe opportunities of green development byimproving energy efficiency, increasing theadoption of renewable energy, and developinglow-carbon products and solutions, in orderto accelerate the realization of our dualcarbon goals. We are also deeply engaged inadvancing smart manufacturing in the newenergy sector and driving innovation in low-carbon technologies and products. By workingclosely with ecosystem partners across thevalue chain, we strive to co-create green valueand promote sustainable growth.Putting People First, Pursuing Mutual Growth.We are committed to cultivating a positive,healthy, and inclusive work environment whereemployees feel a strong sense of belonging.By enhancing employee capabilities andunlocking innovation potential, we provide abroad platform for growth and support themin realizing their personal value. At the sametime, we strive to build long-term, stable, andmutually beneficial relationships with suppliersand partners, working together to create aresponsible supply chain. We actively fulfill
our responsibilities as a corporate citizenby carrying out a wide range of charitableinitiatives. We are committed to exploringinnovative approaches to integrating roboticswith education. Through our “Robotics +Education” model, we aim to cultivate a newgeneration of highly skilled and innovativetalent for the global intelligent manufacturingindustry, fully embracing the responsibilitiesand mission entrusted to enterprises in thisnew era.Looking ahead to a future filled with bothopportunities and challenges, Estun willstay true to its core values of “Open,Innovation, Striving, Growing Together”.We will continue to strengthen the corecompetitiveness of China’s robotics industrythrough cutting-edge technologies andsuperior product quality, while strivingto build a globally recognized brand inintelligent manufacturing. Together with allstakeholders, we will work to unlock newpossibilities for sustainable development.
Message from the ChairmanMessage from the Chairman2024 Environmental, Social, and Governance (ESG) Report0102
About Estun
Corporate Culture
Established in 1993, Estun (Stock Code: 002747.SZ) has consistently upheld the business philosophy of “Open, Innovation,Striving, Growing Together”. The Company focuses on building a comprehensive automation ecosystem and remainscommitted to the independent development of core technologies. This steadfast approach has laid a solid foundation forEstun’s global expansion and its vision to become a respected international brand. Over the past three decades, Estun hassuccessfully developed core business segments including automation components and motion control systems, industrialrobots and intelligent manufacturing systems, as well as digital products and services, providing the industry with world-leading integrated solutions in automation, intelligence, and digitalization.
Enjoy your life fromautomation:
Smarter Manufacturing,Greater Quality,Better Life,Greener World!
Open, Innovation,Striving, Growing Together
For a better life！Always·Doing·Better
2024 Environmental, Social, and Governance (ESG) Report
Vision &Mission
CoreValues
Slogan
Core Business Segments
Automation Core Components and Motion Control Systems
Industrial Robots and Intelligent Manufacturing Systems
Digital Products and Services
As a pioneer in China’s AC servo andmotion control sector, Estun has developedcomprehensive motion control solutionswith full coverage from the informationlayer to the control, drive, and executionlayers. Its extensive product portfolioincludes high-precision multi-axis motioncontrollers, 50W–200kW AC servo systems,inverters, PLCs, HMIs, machine visionsystems, sensors, and more.
Estun offers a full range of industrial robotsspanning payloads from 3 to 700 kg, witha total of 87 models. The Company buildsbenchmark intelligent production lines andsmart factories in collaboration with leadingbrands across a wide range of industries,including automotive, photovoltaics, lithiumbatteries, metal processing, electronicsmanufacturing, building materials andhome furnishing, logistics and packaging,food and beverage, rail transit, constructionmachinery, special vehicles, shipbuildingand offshore engineering, and aerospace.
Focusing on the digital application needsof smart factories, the Company deliversfull life-cycle digital solutions coveringproduction line design, simulation andverification, system integration and delivery,as well as intelligent factory operationsand maintenance. We have developed theE-Noesis cloud platform, which providesdigital functions such as process qualitymonitoring and optimization, fault predictionand analysis, and remote operation andmaintenance. The platform enablestransparency of equipment parameters,process parameters, production capacity,and quality data, offering customers a solidfoundation for digital competitiveness.
About EstunAbout Estun0304
Business Regional Distribution
About EstunAbout Estun
Global Manufacturing Bases(MANUFACTURING BASE)
Europe
Pune, India: Trio Indian Subsidiary/Cloos IndianSubsidiaryKuala Lumpur, Malaysia: Malaysian Subsidiary
Asia
Pennsylvania, USA: Trio North AmericanSubsidiaryIllinois, USA: Cloos North American SubsidiaryMexico: Cloos Mexican SubsidiaryBrazil: Cloos Brazilian Subsidiary
America
Global Service Network(INTERNATIONALIZATION)
Western China
Chengdu ServiceCenter
Chongqing OfficeNorthern ChinaTianjin ServiceCenterJinan OfficeQingdao Office
Central ChinaChangsha ServiceCenterWuhan OfficeZhengzhou OfficeNortheast ChinaShenyang Office
ChinaEastern ChinaHeadquarters inNanjing
Southern ChinaShunde ServiceCenter
Southeast ChinaHangzhou OfficeNingbo OfficeWenzhou OfficeXiamen OfficeDongguan OfficeShenzhen OfficeFoshan OfficeWuxi OfficeChangzhou OfficeSuzhou OfficeShanghai Office
Southern China Regional Headquarters (Foshan)Central China Regional Headquarters (Changsha)Southwest China Regional Headquarters (Chengdu)Estun Automation (Hubei) Manufacturing Base
Nanjing, China
?Estun Automation Headquarters RobotManufacturing Base?Estun Automation Motion ControlSystem Manufacturing Base?Estun Machining Manufacturing Base?Estun Automation IntelligentManufacturing Base
Trio Motion ControlManufacturing Basein the UK
M.A.i Intelligent SystemsEngineering ManufacturingBase in GermanyCloos Welding RobotManufacturing Basein Germany
Estun Automation HeadquartersRobot Manufacturing Base
Estun Automation IntelligentManufacturing Base
Estun Automation (Hubei)Manufacturing Base
Southern China RegionalHeadquarters(Foshan)
Trio Motion ControlManufacturing Base in the UK
Southwest China RegionalHeadquarters(Chengdu)
Cloos Welding RobotManufacturing Base in Germany
Central China RegionalHeadquarters(Changsha)
M.A.i. Intelligent Systems EngineeringManufacturing Base in Germany
Estun Automation MotionControl System Manufacturing Base
Estun MachiningManufacturing Base
Global ManufacturingBases
Global ServicePoints
London, UK: Trio HeadquartersStaffordshire, UK: Cloos UK SubsidiaryMilan, Italy: European R&D CenterKronach, Germany: M.A.I HeadquartersHaiger, Germany: Cloos HeadquartersOther Cloos subsidiaries in Europe: Belgium,the Netherlands, Austria, Spain, Turkey, CzechRepublic, and Hungary
2024 Environmental, Social, and Governance (ESG) Report0506
Responsibility 2024
Awards & Honors
Responsibility 2024Responsibility 2024
Operating revenue
RMB
4.01
billion
Total tax contributionRMB
million
Specialized audits conducted onbusiness ethics and anti-corruption
Promoting High-Quality DevelopmentGovernance Chapter
Total online employee training hours113,080.26
Production safety investmentRMB
5.60
million
Total charitable donationsRMB
781,400
Advancing Together on a New JourneySocial Chapter
R&D investmentRMB
million
First-pass unpacking yield
99.69
%
Total R&D personnel
1,032
Process pass-through rate
94.08
%
year-on-yearup 0.11percentage points
year-on-yearyear-on-year
Cumulative granted patentsand software copyrights
Customer satisfaction score
1,015
89.76
up 2.56
points
Activating New Quality Productive ForcesFuture Chapter
year-on-yearup 6.95%
year-on-yearup
0.06
%
up 6.92
percentage points
Environmental protectioninvestment
RMB
1.72
?million
Water withdrawal intensity
0.34
Building a Sustainable Future TogetherEnvironmental Chapter
Greenhouse gas emission intensity
2.46
tons of CO
equivalent/RMB 1 million revenuetons/RMB 10,000 revenue
Single-Product Manufacturing
Champion Enterprise
Ministry of Industry and Information Technology
Industrial Robot Industry
Compliant Enterprise
Ministry of Industry and Information TechnologyIncluded in the Ministry of Industry andInformation Technology'sFirst (Set) Major TechnicalEquipment Promotion and Application Guidance CatalogMinistry of Industry and Information TechnologyNational Advanced Collective
in Industry and IT Systems
Ministry of Human Resources and Social Security,Ministry of Industry and Information Technology
Second Prize, 2023 Guangdong ProvincialScience and Technology Progress AwardPeople's Government of Guangdong ProvinceSecond Prize, Mechanical Industry Science andTechnology Award, 2024 Mechanical Safety ConferenceNational Technical Committee 208 of Safety ofMachinery of Standardization Administration of China
No. 1, List of Top 50Innovative Robot Enterprises
Internet DeepAAA Quality Credit Rating Enterprise
of Jiangsu ProvinceAdministration for Market Regulation of Jiangsu Province
2024 Global Top 100Photovoltaic BrandsPhotovoltaic Brand Lab (PVBL)
Annual Excellent Brand Award
for Industrial Robots
10th Capek Prize
Outstanding Sales Award for Industrial Robots,2024 5th China Robot Industry Annual Conference
Lide 5th China Robot Industry Annual Conference
and LeadeRobot Robot Industry Awards CeremonyTop 50 Leading Enterprises in the Robot Industry,2024 5th China Robot Industry Annual ConferenceLide 5th China Robot Industry Annual Conferenceand LeadeRobot Robot Industry Awards Ceremony
2024 Innovative Product,GGII Golden Globe Award2024 11th GGII Robot Annual ConferenceTen-Year Industry Contribution Enterprise,
GGII Golden Globe Award2024 11th GGII Robot Annual Conference
Dual Awards for Outstanding Product andAdvanced Technology, 2024 China Intelligent
Welding Industry Chain Pioneer Category2024 (3rd) GGII New Energy IntelligentManufacturing Summit
2024 Top 30 Intelligent Manufacturing in
New Energy Industry2024 (3rd) GGII New Energy IntelligentManufacturing Summit
Golden Quality Award forScience and Technology InnovationShanghai Securities NewsInnovative Product Awardchuandong.com
2024 Environmental, Social, and Governance (ESG) Report0708
Sustainable Development Management StrategySustainable Development Management
Honors & Awards in Sustainable Development Management
Estun has established and refined its ESG governance structure to constantly enhance the ESG governance standards. In2024, the Company implemented a three-tier ESG management framework led by the Board of Directors, comprising thesupervisory, management and executive bodies to effectively implement its ESG and sustainable development initiatives.
Board of DirectorsThe Board of Directors serves as the highest decision-making body for the Company's ESG management. Itis responsible for reviewing and approving the Company's ESG development strategy and objectives, ESGmanagement systems, ESG reports, and other significant ESG matters.
ESG Leadership GroupThe ESG Leadership Group is led by the General Manager and comprises heads of departments responsiblefor various aspects of the business, including corporate governance, environmental management, health andproduction safety, supply chain management, product innovation, quality and service, and human capitaldevelopment. As the Company's ESG leadership and management body, it oversees all ESG work, identifiesand manages ESG risks and opportunities, determines the materiality of ESG issues, and integrates them intooperational considerations. The group is also responsible for developing ESG objectives and plans.
ESG Working GroupThe ESG Working Group consists of relevant personnel from various departments and subsidiaries,serving as the practical implementation body for ESG initiatives. Its main responsibilities includepromoting the execution of ESG issues, managing ESG-related indicators, and monitoring theimplementation of ESG projects. The group also collects and reports ESG information.
During the reporting period, the Board of Directors convened special meetings to review and confirm critical ESGmatters, materiality assessments, and the achievement status of ESG objectives. The ESG Committee reviewed andapproved theResolution on the Company's 2023 Environmental, Social, and Governance (ESG) Report. Furthermore,the Company developed and released theEnvironmental, Social, and Governance (ESG) Indicator ManagementManual, clarifying the scope of ESG work and promoting regular management, information collection, and reportingof ESG activities. The Company also implemented a series of management improvement initiatives to constantlyenhance its ESG management system and ESG issue management.In October 2024, Estun conducted specialized ESG training for middle and senior management, as well as membersof the ESG Working Group. The training encompassed the latest ESG trends and compliance requirements,interpretation of ESG rating methodologies, and strategies for improving ESG management capabilities. This initiativehelped both leadership and employees deepen their understanding of the Company's ESG management strategiesand practices, facilitating the efficient implementation of ESG initiatives.
Board of Directors
ESG Leadership Group
Environmental, Social, and Governance (ESG) Committee
Environmental, Social, and Governance (ESG) CommitteeThe ESG Committee is led by the Chairman. Its primary responsibilities include directing the formulation of theCompany's ESG strategy and objectives, as well as monitoring and evaluating the progress and effectivenessof ESG practices. The committee reports ESG matters to the Board of Directors and assists in identifying andassessing ESG-related risks and opportunities.
The Supervisory Bodies
The Management Body
The Executive Body
CNI Index ESG Rating
AAA
China Reform Consulting ESG Rating
AA2024 Best ESG PracticeAward for Listed Companies
by Value Online
Sino-Securities Index ESG Rating
AA
Wind ESG Rating
A
CCXGF ESG Rating
A+
Sustainable Development Management StrategySustainable Development Management Strategy
The Supervisory Bodies
The Management Body
The Executive Body
ESG Working Group
Corporate GovernanceWorking GroupBusiness EthicsWorking GroupEnvironmental ManagementWorking GroupClimate Change ResponseWorking GroupProduction Safety WorkingGroupEmployee ResponsibilityWorking GroupSupply Chain ManagementWorking GroupProduct Innovation WorkingGroupQuality and Service WorkingGroupInformation Security WorkingGroupCommunity ResponsibilityWorking Group
2024 Environmental, Social, and Governance (ESG) Report0910
Stakeholder CommunicationMaterial Issues Analysis
Estun places great importance on communication with its stakeholders. Based on its daily operations, managementpractices, material issue categories, and various influencing factors, the Company identifies and prioritizes internal andexternal stakeholders with significant impact. Through diverse communication channels, it actively engages to understandstakeholder expectations and concerns, and responds in a timely and proactive manner to achieve mutual benefit andharmonious development with all parties.
Effectively identifying and managing material issues is fundamental to advancing a company’s sustainable developmentstrategy, risk and opportunity management, and information disclosure. In 2024, Estun conducted a double materialityassessment to accurately identify and evaluate the Company’s key sustainability issues. The assessment engagedstakeholders across various groups and was guided by multiple sustainability disclosure standards, including theGRIStandards,theShenzhen Stock Exchange Guidelines No. 17 on Self-Regulation for Listed Companies — SustainabilityReporting (Trial), theShenzhen Stock Exchange Guidelines No. 3 on the Preparation of Sustainability Reports, theIFRS S1— General Requirements for Disclosure of Sustainability-related Financial Information, and theEuropean SustainabilityReporting Standards (ESRS). The assessment considered two dimensions: Impact Materiality—the significance of anissue’s impact on economic, environmental, and social sustainability; and Financial Materiality—the extent to which anissue may affect the Company’s financial performance. Based on the results, Estun identified its material issues andhas prioritized their disclosure and response within this report. The Company will continue to refine its sustainabilitymanagement practices to better address stakeholder expectations and concerns.
Based on an analysis of internal and external development trends, and with reference tomacroeconomic policies in the Company’s areas of operation as well as industry-specific policiesand standards, Estun developed a list of sustainability issues and identified 24 material issues,including both general and industry-specific issues.① The identification process was guided by the following considerations:
The reporting framework outlined in theShenzhen Stock Exchange Guideline No.17 on Self-Regulation for Listed Companies — Sustainability Reporting (Trial)served as the primaryreference, supplemented by other authoritative domestic and international sustainabilityreporting standards, including theIFRS S1 – General Requirements for Disclosure ofSustainability-related Financial Information and
the GRI Standards.②Mainstream domestic and international ESG rating systems and sustainability issues prioritizedby industry peers.
③Issues of common concern to both internal and external stakeholders, identified withconsideration of industry characteristics, stage of industry development, business model, andposition within the value chain, as part of the assessment of financial materiality and impactmateriality.④Insights from experts and other relevant sources.In line with the principle of dual materiality, the Company conducted both impact materiality andfinancial materiality assessments. This process resulted in the 2024 materiality matrix, whichhighlights our most significant ESG issues and their prioritization for the year. The relevantstakeholders engaged in the process include Board members, supervisors, senior executives,employees, customers, suppliers, investors, regulatory authorities, media, and the public.Impact Materiality:The assessment began with the definition of evaluation factors and scoringintervals for impact materiality. Stakeholders assessed each ESG issue based on both its potentialpositive and negative impacts, considering dimensions such as the scale, scope, irremediability, andlikelihood of those impacts. Based on the survey results, the impact materiality of each topic wasdetermined. The findings were then reviewed and validated by the Company’s ESG Committee andexternal sustainability experts to ensure objectivity and accuracy.Financial Materiality:The assessment began with the definition of financial materiality evaluationfactors and threshold values. Each issue was evaluated based on whether the risks or opportunitiesit presents are expected to have a significant impact on the Company’s business model, operations,development strategy, financial condition, operating results, cash flow, or financing structure and costover the short, medium, or long term. The findings were subsequently reviewed and validated by theCompany’s ESG Committee and external sustainability experts to ensure objectivity and accuracy.Based on the assessment results, a materiality matrix was developed using two dimensions:
impact materiality and financial materiality. The prioritization of sustainability issues was finalizedfollowing a comprehensive review and validation by the Company’s ESG Committee and externalsustainability experts. For each material issue, this report discloses key information regarding itsgovernance, strategy and management approach, associated impacts, risks and opportunities, aswell as relevant indicators and targets.
Estun's Double Materiality Assessment Process
StakeholdersIssues of ConcernCommunication Channels
Government andRegulatory Bodies
?Compliance and risk management?R&D and innovation?Green technologies and products?Climate change and energy management?Public welfare and charity?Product quality management
?Government meetings?Special reports?On-site visits?Information delivery
Shareholders & Investors
?Corporate governance?Protection of Investor Rights and Interests?Customer service management?R&D and innovation?Product quality management?Sustainable supply chain
?Information disclosure?General meeting of shareholders?Results briefing?Investor communication platform?Investor research and communication
Customers
?Product quality management?Sustainable supply chain?Intellectual property protection?Responsible marketing?Customer service management?Information and data security
?Daily operational communication?Official communication channels
?After-sales service and feedback
?Customer satisfaction survey
Suppliers & Partners
?Corporate governance?Digital transformation?Environmental management system?Business ethics and anti-corruption?Compliance and risk management?Green technologies and products
?Strategic cooperation?Thematic Training?Market research?Special meetings?Industry exchanges
Employees
?Employee training and development?Employee rights and benefits?Compliance and risk management?Industrial cooperation and development?Production safety and occupational health?Product quality management
?Official WeChat of the Company?Workers' Congress?Employee activities
Community and Public
?Pollution and waste management?Business ethics and anti-corruption?Green technologies and products?Industrial cooperation and development?Public welfare and charity
?Community communication?Media interaction?Industry forum?Information disclosure?Public welfare volunteer activities
IssueMapping andIdentification
Survey andEvaluation
Confirmationand Response
Sustainable Development Management StrategySustainable Development Management Strategy2024 Environmental, Social, and Governance (ESG) Report1112
The potential positive impact ofeach issue was evaluated usingtwo factors: the likelihood ofpositive impact and the degreeof positive impact, taking intoaccount both the scale and scopeof the potential impact. Thetop five issues with the highestpositive impact rankings are: R&Dand Innovation, Product QualityManagement, Customer ServiceManagement, Employee Trainingand Development, and CorporateGovernance.The potential negative impact ofeach issue was assessed using twofactors: the likelihood of negativeimpact and the degree of negativeimpact, considering the scale,scope, and irremediability of theimpact. The top five issues with thehighest negative impact rankingsare: Corporate Governance,Employee Rights and Benefits,Product Quality Management,Customer Service Management,and Responsible Marketing.The positive and negative impactsof each issue were consolidatedinto a single impact materialitydimension. Based on the surveyresults, the impact materialityof each issue was assessedand subsequently reviewed andvalidated by the Company’sESG Committee and externalsustainability experts.
The Company has conducted a comprehensive analysis of its key sustainability topics, reviewing the duration of theirimpacts, as well as associated risks and opportunities. Based on the findings, the Company has developed targetedresponse strategies to effectively mitigate risks and seize opportunities, thereby advancing its long-term sustainabledevelopment.
Estun's Dual Materiality Issues Matrix
Comparison of Positive and Negative Impacts of Estun’s Material Issues
Risk and Opportunity Analysis of Material Issues
Material Issue
ImpactDuration
Risks/OpportunitiesResponse Strategy
R&D andinnovation
Long term
R&D investment may lead to higherfinancial input with uncertain or delayedcommercial returns.Technological innovation enablesthe Company to respond promptly toevolving customer needs and enhancesits competitiveness and industryleadership.
Implement short-, medium-, and long-term R&D strategies,increase investment in research, and build technologyinnovation platforms to overcome critical core technologybottlenecks.Advance technology and product development under the IPD(Integrated Product Development) model based on analysis ofmacro industry trends, corporate strategic planning, customerneeds, and technological directions.For more information, please refer to the "Innovation-DrivenDevelopment" section.Productqualitymanagement
Long term
Quality issues may lead to significanteconomic losses, including potentialproduct recalls.High-quality products can enhancecustomer trust, strengthen theCompany’s reputation, and increasemarket share.
Establish a full-process quality management system covering allstages from product R&D and design to manufacturing, and builda corporate culture of quality at Estun.Build Estun’s Product Reliability Testing Center with specializedinstruments and a dedicated testing team, and implementreliability testing standards that exceed national and IECbenchmarks to enhance R&D quality and product reliability.
For more information, please refer to the "Professional QualityService” section.
Customer
servicemanagement
Long term
Deterioration in customer relationshipsmay lead to customer attrition, therebyaffecting the Company’s marketperformance.Strong customer relationships supportbusiness growth and create newcommercial opportunities.
Establish a comprehensive service assurance system andbuild a global service network to provide customers withtimely and comprehensive after-sales support.Conduct regular customer satisfaction surveys, establisha complaint handling process, and respond promptly tocustomer feedback.For more information, please refer to the "Optimizing CustomerService” section.
Sustainablesupply chain
Medium tolong term
ESG-related risks in the supply chainmay lead to supply chain instability anddisrupt the Company’s production andoperations.
Improve supply chain management by incorporating ESGfactors into supplier evaluation and selection.Implement a supply chain risk management plan tocontinuously identify and monitor risks in the procurementprocess.Promote sustainable development practices among suppliers.For more information, please refer to the "Supply ChainManagement" section.Information
and data
security
Medium tolong term
Information and data breaches mayviolate relevant laws and regulations,resulting in compliance risks, financiallosses such as fines, and infringementof customer rights, thereby underminingcustomer trust in the Company.Ensuring information and data securityhelps strengthen the relationship betweenthe Company and its customers.
Improve the information security management system, andstrengthen data control and cybersecurity protection.Standardize information confidentiality practices and enhanceemployee awareness of information security.
For more information, please refer to the "Information Securityand Privacy Protection" section.
Corporategovernance
Long term
An inadequate corporate governancesystem may lead to poor decision-making and ineffective internal oversight,which could undermine the Company’slong-term development, shareholderinterests, and market reputation.
Establish a sound and efficient corporate governancestructure with clearly defined responsibilities and standardizedoperations. Ensure the independence and diversity of theBoard of Directors to promote fairness and informed decision-making in corporate governance.For more information, please refer to the "Enhancing CorporateGovernance" section.Compliance
and riskmanagement
Medium tolong term
Non-compliance and inadequate riskmanagement may result in financiallosses, legal disputes, and reputationalrisks for the Company.
Consistently improve the internal control and compliancemanagement system with a focus on audit, internal control,and compliance integration.Strengthen the tax management system and continuouslyenhance tax compliance capabilities.For more information, please refer to the “Risk and ComplianceManagement" section.
Sustainable Development Management StrategySustainable Development Management Strategy
Corporate governance
Industry Cooperationand Development
Intellectual propertyprotection
Responsible marketing
Production safety andoccupational health
Sustainable supply chain
Product qualitymanagement
Employee trainingand development
Information and datasecurity
R&D and innovation
Employee rightsand benefits
Customer servicemanagement
Public welfare and charity
Business ethics andanti-corruption
Compliance and riskmanagement
Protection of investorrights and interests
Digital transformation
Environmentalmanagement system
Promoting greenpackaging
Material recycling
Green technologiesand products
Pollution and wastemanagement
Climate Change andEnergy Management
Water use andmanagement
Social dimensionEnvironmental dimensionGovernance dimension
1516
Significance of Impact on the Company’s Financial PerformanceHigh
High
Significance of Impact on Economic,Environmental, and Social Sustainability
Low
Negative impactPositive impact
Public welfare and charity
Customer service management
Water use and management
Production safety and occupational health
Material recycling
Protection of investor rights and interests
Employee training and development
Intellectual property protection
Environmental management system
Information and data security
Green technologies and products
Corporate governance
Industrial cooperation and development
Product quality management
Climate change and energy management
Sustainable supply chain
Promoting green packaging
Business ethics and anti-corruption
Employee rights and benefits
R&D and innovation
Digital transformation
Responsible marketing
Pollution and waste management
Compliance and risk management
81014121600424626
②
③
①
2024 Environmental, Social, and Governance (ESG) Report1314
Industry-Education Integration
Robotics + Education
DevelopingComprehensive Textbooks
Enhancing VocationalTraining Capabilities
EstablishingEducational Platforms
FosteringDiverse Talent
In this era of rapidly growing new quality productive forces, Estun, a leader in intelligent manufacturing, shoulders thecrucial mission of advancing educational innovation and industrial upgrading. We understand that the future of intelligentmanufacturing hinges on talent development and technological breakthroughs. To this end, we are actively exploringthe seamless integration of robotics and education, pioneering a novel "Robotics + Education" approach to nurture high-caliber, innovative professionals for the global intelligent manufacturing sector.
Estun's long-standing commitment to the education sector is reflected in our comprehensive, multi-tiered strategyof collaboration with higher education institutions, research institutes, and vocational colleges. Our aim is to create aholistic talent development pipeline that drives the rapid advancement of the intelligent manufacturing industry. Lookingahead, Estun will continue to forge partnerships to nurture more high-caliber professionals in intelligent manufacturing,supporting China's manufacturing sector in its digital transformation and pursuit of high-quality development.
In November 2024, the Company successfully launchedthe first University Robotics Competition of "EstunCup", drawing 41 teams from 26 institutions nationwide.Centered on the theme "Intelligent Manufacturing +Create the Future," the competition employed a "learningthrough competition" approach. By replicating real-worldindustrial scenarios in a competitive setting, the eventseamlessly blended theoretical knowledge with practicalapplication, igniting students' innovative potential. The
In 2024, Estun played a pivotal role in the successfulorganization of the Nanjing Workers' Skills Competition.As a co-organizer, Estun's robots took center stage in thefinals, examining contestants' practical ability and innovativethinking with real-world tasks such as system debugging,troubleshooting, and optimization. This not only provided robusttechnical support for the event but also injected momentuminto the high-quality development of intelligent manufacturingin Nanjing and beyond, underscoring Estun's commitment as anindustry leader.
competition aims to catalyze the structural optimization of relevant majors and the reform of their curricula in higher education,fostering the development of well-rounded individuals with both innovative mindsets and practical skills. The ultimate goal is to infusethe intelligent manufacturing industry with fresh talent and vitality.Fostering a Dynamic Ecosystem for Diverse Teaching Practices
Unlocking Infinite Possibilities
Responsibility Topic
In May 2024, Estun joined forces with Beijing Huatec Information TechnologyCo., Ltd., Loongson Technology Corporation Limited, Hengli JiachuangPrecision Industrial Equipment (Shanghai) Co., Ltd. under Hengli Group,and other enterprises to implement the Estun University Plan. This initiativeaddresses the needs for new quality productive forces of the manufacturingsector by creating an innovative platform that bridges industry demands withacademic resources. The plan aims to foster the integrated development of theindustrial chain, innovation chain, education chain, and talent chain, promotingdeep industry-education synergies and driving innovation in both universitytalent cultivation models and manufacturing practices.
Joint Launch of the Estun University PlanCase
University Robotics Competition of "Estun Cup"
Estun Robots Showcase Elite Skills at Workers' Competition
Inspiring Future Innovators: Estun Hosts Students from Nanjing New Academy Yougu School
CASE
CASE
CASEIn November 2024, the fourth and fifth-grade students from Nanjing New Academy Yougu School embarked on an enlighteningjourney to "explore the world of robotics" at Estun. The young visitors toured Estun's exhibition hall, robot assembly workshop, andintelligent manufacturing experience center, gaining firsthand exposure to the efficiency and precision of industrial robots. Thisimmersive experience not only broadened the students' knowledge horizons but also kindled their enthusiasm for scientific andtechnological innovation. The visit opened a window to the future of technology and planted the seeds of technological aspirationsin the minds of these young learners.
Responsibility TopicResponsibility Topic
Estun is committed to leveraging its technological expertise and industry insights to enrich educational resources,empowering innovation through multifaceted approaches and promoting deep synergies between industrial technologyand educational pedagogy.
The Company has participatedin the development ofuniversity-level instructionalmaterials and designatedtextbooks for the training ofapplication-oriented industrialrobotics professionals. Ourpublications, including theIndustrial Robot Motion ControlTechnologyandIntroductionto Industrial Robot Usage,incorporate Estun's extensiveexperience and cutting-edgetechnology in the domain,providing systematic andpractical resources for the"Robotics + Education" initiative.
The Company supportsuniversities in acceleratingthe development of academicdisciplines and specialtyprograms, and in strengtheningdual-capable faculty teams—those equipped with bothteaching expertise and practicalindustry experience. By jointlyorganizing training programswith partner institutions, theCompany enhances the teachingproficiency and engineeringpractice capabilities of instructors,providing strong support for thecultivation of application-orientedtalent in the industrial roboticssector.
The Company haspartnered with SoutheastUniversity to establish theEstun–Southeast UniversityIndustrial Robot MotionControl Laboratory. Inaddition, the Companyhas developed integratedtraining platforms andpractical training basesthat combine industryand education, offeringstudents internship andemployment opportunitiesand providing solid supportfor nurturing talent inintelligent manufacturing.
The Company activelycollaborates withuniversities, researchinstitutes, and vocationalcolleges to promote in-depth academic-industrycooperation. Throughinitiatives such as the"Elite Craftsmen" talentdevelopment program,technical applicationskills competitions,and international talentexchange efforts, Estun iscommitted to cultivatinghigh-quality professionalsfor the intelligentmanufacturing industry.
Robotics + Education: Empowering EducationalInnovation and Transformation
2024 Environmental, Social, and Governance (ESG) Report1516
Activating New Quality Productive ForcesActivating New Quality Productive Forces
Future Chapter
Contributing to UN SDGs
Future ChapterActivating New QualityProductive Forces
2024 Environmental, Social, and Governance (ESG) Report1718
Activating New Quality Productive ForcesActivating New Quality Productive Forces
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Creating Industrial ValueThe global manufacturing sector is currently experiencing a period of continuous development and transformation.Industrial automation, serving as the cornerstone of this transformation, is propelling the advancement of intelligentmanufacturing and Industry 4.0. Estun consistently adheres to its "All Made By Estun" comprehensive industrial chainstrategy, focusing on three core areas: autonomy in high-end manufacturing, green energy-saving and low-carbonpractices, and quality and efficiency enhancement through intelligent solutions. Through its efficient, intelligent, safe,and accessible products and solutions, Estun actively empowers the transformation and upgrading of diverse industries.Autonomy in High-end Manufacturing
Green Energy-Saving andLow-Carbon Practices
Quality and Efficiency Enhancementthrough Intelligent Solutions
Comprehensive Industry Solutions
AutomotiveIndustryVehicle body spotwelding
Body-in-white arcwelding
Glass sunroof sealingDoor assemblyPhotovoltaicIndustry
High-EndEquipment
LithiumBattery
Battery section: ALDinsertionAutomated cell loading
Construction machinery
Module section: Stringarrangement applicationCell electrodeinspectionHigh-voltage specialtransformers
Module section:
Curing line
Module compressionforming
Specialized vehicles
Digital production line
monitoringModule stacking
Rail transit
Home appliances
TextilesEducation
Personal careproductsApparelPrintingHomefurnishingsPharmaceuticalsBuilding materialsand steel structures
Rail transitFitness equipmentMetallurgy
Light foodElectronics GlassLow-speedtransportationEntertainmentequipmentChemical industry
Beverages andspiritsDisplay panelsRefractory materialsEngineeringmachineryShipbuilding andmarine engineeringOthers
In the context of "dual carbon" goals, Estun recognizes green, e?cient, and energy-saving products and solutionsas signi?cant business development opportunities. In 2024, the Company increased its R&D investments in cleantechnology, developing innovative energy-saving products and solutions, while providing highly e?cient and reliableenergy-saving integration schemes and services. Estun has comprehensively engaged in the intelligent manufacturingupgrade of the new energy industry, empowering upstream and downstream ecosystem partners in the industrialchain to achieve green and low-carbon transformation, collaboratively building a greener and more sustainablefuture.
Driving the Low-Carbon Transition of Society
Reuse Principle
Prioritize the disassembly anduniversality of components tofacilitate product repair andreplacement during use, therebyextending product lifespan.
Recycling Principle
Select recyclable andbiodegradable materials toensure that products can beeasily recycled after disposal, re-entering the production cycle andminimizing environmental impact.
Reduction Principle
Minimize raw material usage,optimize product structure,streamline product functions,and avoid excessive packagingto reduce resource consumptionand waste generation.
Committed to the corporate mission of "making the world greener," Estun adheres to the principles of green designand circular design, comprehensively reducing carbon emissions and resource consumption throughout the productlifecycle, thereby further enhancing the environmental sustainability of its products.Creating Green Products
Green Design
StageKey Initiatives
We consistently improve product energy efficiency and integrate the development of green energy products,energy-saving products, and solutions to help customers conserve more energy and achieve superior cost-savingperformance. For instance, in the CTP100s module ?exible line assembly project, when end-users replace traditionalhigh-speed chain production lines with ?exible line assembly, the total power consumption of the production line isreduced by approximately 20 kilowatts. With the implementation of energy data management, energy consumptionis e?ectively reduced by over 5%. Based on an annual shipment of 150,000 battery packs, the total electricity savedamounts to 79,050 kWh, equivalent to a reduction of approximately 45.05 tons of carbon dioxide emissions.
Product Energy-Saving Benefits
The Company actively pursues green product design, adopting concepts such as lightweight, modular, and intelligentdesign principles.In terms of lightweight design, the Company explores innovative materials and technologies, as well as miniaturizedproduct designs. While maintaining essential product performance, it streamlines product structures and reducesmechanical volume and component quantities. In 2024, the newly launched magnesium alloy robot ER4-550-MIachieved an 11% weight reduction compared to its aluminum alloy counterpart.In terms of modularity, the Company combines different functional modules to meet varied application needs,improving maintainability, disassembly, scalability, and reusability.In terms of intelligent features, the Company has introduced more precise and high-speed autonomous industrialrobot dynamics model algorithms. These are integrated with robot+AI vision, robot+sensors/actuators, robot+digitalsimulation platforms, robot+industrial internet platforms, and robot+mobile robots to deliver comprehensive "robot+"intelligent manufacturing solutions and sophisticated industry-specific scenario solutions.A rigorous green material selection standard system has been established, encompassing multiple dimensions.Regarding environmental friendliness, the content of toxic and hazardous substances in raw materials is strictlyregulated. In compliance with standards such as RoHS, the use of harmful substances including lead, mercury,cadmium, hexavalent chromium, polybrominated biphenyls, and polybrominated diphenyl ethers is strictlyprohibited. Priority is given to low-toxicity, non-toxic, and biodegradable materials. In terms of recyclability, theCompany has increased the proportion of renewable raw materials used to ensure efficient recycling and reuseof selected materials after product end-of-life. During the reporting period, mechanical structural changes wereimplemented for anti-stick gripping, replacing anti-stick materials applied through spraying processes, effectivelyreducing hazardous waste generation.Close attention is paid to material composition during the procurement phase. Suppliers are required to providerelevant compliance documentation and traceability reports for materials. Green cooperation agreements aresigned to clearly define both parties' environmental responsibilities and obligations, ensuring minimal impact of rawmaterials on health, safety, and the environment.
High-efficiency insulation materials, such as polyurethane sandwich panels, are utilized for warehouse walls androofs, constructing storage facilities with superior thermal insulation properties. Energy-efficient lighting systemsare installed, significantly reducing energy consumption and carbon emissions.Green transportation options are prioritized for short-distance transport. For instance, the Liyang project employsnew energy trucks, effectively reducing fuel consumption by 18% and decreasing harmful substances in exhaustemissions.Environmentally friendly packaging is constantly promoted to facilitate the recycling of packaging materials.
Optimizing production processes and implementing intelligent transformations of production equipment are corestrategies for energy conservation and consumption reduction. Unnecessary processing steps are eliminated,equipment precision control and energy efficiency are improved, reducing energy consumption throughout theproduction process.
For detailed information, please refer to the "Resource Management" and "Pollution Prevention and Control" chapter modules.
ProductDesign
Raw Material
Selection
Production andManufacturingStorage/Transportation
Usage
Disposal
For more detailed information, please consult the "Improving Manufacturing Efficiency" module in this chapter.
Green, energy-efficient, and high-performance low-carbon products and solutions are innovatively developed to helpcustomers improve manufacturing efficiency. Taking automotive manufacturing as an example, digital models areemployed to comprehensively simulate the entire production process, precisely analyzing material and energy flows ateach stage, and identifying wasteful and high-energy-consuming process nodes. Through adjustments in productionprocess sequences, optimization of equipment layout, and refined energy allocation, overall factory energy utilizationefficiency is improved by 20%, average material transportation distances are shortened by 20%, and productionefficiency is increased by 18%, resulting in greater energy savings and reduced environmental impact from waste.Standard products and standardized modules are employed to build production lines, with product designs focused on easyrecycling and disassembly, improving the reuse rate of various modules in the production line. For example, 20 robots areused to replace three-axis non-standard motion mechanisms in building a super mold-pulling module production line. Insubsequent production line iterations, robots and standardized equipment are successfully applied to new production lines,achieving a production line reuse rate of up to 50% (compared to traditional production lines' reuse rate of about 20%),reducing dependence on primary resources and decreasing landfill waste.During the production line disposal phase, equipment operation data, maintenance records, and technical parameters fromthe disassembly process are meticulously collected and organized to establish a comprehensive lifecycle database for theproduction line. This provides valuable reference for subsequent green product R&D, helping to shorten new production lineR&D design cycles by 15%, avoid repetitive issues, and improve the success rate and efficiency of green product development.
2024 Environmental, Social, and Governance (ESG) Report1920
Activating New Quality Productive ForcesActivating New Quality Productive Forces
Future Chapter
In light of the carbon peak and carbon neutrality objectives, global demand for clean energy continues to surge. Estunfully leverages its core technological advantages in motion control and industrial robotics, strategically positioning itselfin new energy market segments. The Company has assembled teams of industry experts to conduct in-depth researchon industry processes and explore sector-specific needs and challenges, thereby injecting momentum into the greendevelopment of the new energy industry.
Supporting New Energy Green Manufacturing
Rated as a Single-Product Manufacturing
Champion Enterpriseby the Ministry ofIndustry and Information Technology for thePhotovoltaic Layout Industrial RobotListed in the PVBL2024 Global Top100 Photovoltaic
Brands
Ranked among the2024 Top 30Intelligent Manufacturing in NewEnergy Industryat the 2024 (3rd) GGII NewEnergy Intelligent Manufacturing Summit
Photovoltaic smart factoryLithium battery smart factoryNew energy vehicle smart factoryHydrogen energy smart factory
Photovoltaic IndustryLithium Battery IndustryNew Energy Vehicle IndustryHydrogen Energy Storage
Our focus encompasses applications across theentire photovoltaic industry chain, addressingintelligent manufacturing needs in silicon crystal,solar cell, and photovoltaic module productionstages. We have developed comprehensive intelligentsolutions for the photovoltaic industry, forging closepartnerships with over 100 enterprises in this sector.Our global market share exceeds 90%, with morethan 15,000 Estun photovoltaic-specific robotsoperating reliably around the clock. Our cutting-edge Chinese technology is spearheading the robustdevelopment of the photovoltaic industry worldwide.In solar cell production, as cells become increasinglythin and larger, greater demands are placed on thespeed, precision, and stability of cell handling andinsertion. Our latest high-speed, high-precisionUNO-15-1430-HP robot can transport 34 solarcells in a single cycle. Equipped with an advanceddynamics model, it achieves optimal accelerationand deceleration planning and precision assurancethroughout its operational range, effectivelymitigating the risk of cell damage during handling.
Recognizing the complexity of lithium batterymanufacturing processes, we have integrated thestrengths of our Trio motion controllers, Estunservo systems, industrial robots, machine vision,and digital products to create intelligent solutionsspanning from cell to module/PACK production forthe lithium battery industry. Through collaboration,we have enabled customers to iterate theirtechnology four times, resulting in a cumulativeefficiency improvement of over 300%.In lithium battery manufacturing, electrolyte wipingis a critical process. Traditional wiping methodsoften face challenges such as low efficiencyand insufficient precision. To address this, wehave developed an innovative flexible wipingsolution featuring a force-controlled robot with amultifunctional end-of-arm tool that combines liquidspraying and wiping functions. An advanced wipingforce control algorithm ensures effective cleaningwhile preventing damage to battery end caps,paving the way for automation of complex manualoperations in the lithium battery industry.
To cater to the diverse applications in the newenergy vehicle industry, including arc welding,spot welding, gluing, stamping, handling,loading/unloading, riveting, and casting, wehave introduced a range of medium andheavy-duty robot models. These robots areequipped with mature automotive industry-specific process software packages, drivingintelligent manufacturing advancements inthe new energy vehicle sector.To meet the challenge of joining dissimilarmaterials in new energy vehicle production,we have engineered an SPR/FDS robotautomatic switching riveting production line.Centered around the ER350-3300 heavy-duty robot, this system effectively countersthe reaction force on the robot body duringriveting operations, meeting high load, highrigidity, and high reliability requirements whileensuring process precision and quality.
In the intricate process of water electrolysis forhydrogen production, every nuanced operationdirectly impacts hydrogen purity and productionefficiency. The Estun ER350-3300 robot, withits optimized structural topology, significantlyenhances wrist inertia and torque performance.It precisely executes electrolyzer assembly,maintenance, and fine adjustments during theelectrolysis process. Leveraging its robust loadcapacity and flexible operating range, it ensuresefficient and stable hydrogen production, providingsolid technical support for high-quality greenhydrogen production.We have supported a leading domestic hydrogenenergy equipment enterprise in its global expansion,promoting water electrolysis hydrogen productionprojects and hydrogen storage equipmentdevelopment and application in Egypt. In India, wehave facilitated the construction of an advancedmanufacturing plant for electrolyzers with a300MW annual production capacity, contributingsignificantly to the green energy transition in Asiaand Africa.
2024 Environmental, Social, and Governance (ESG) Report2122
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Future Chapter
Under the guidance of Made in China 2025, industrial enterprises are rapidly advancing their digital transformation.Focusing on the digital application needs of intelligent factories, Estun has expanded its capabilities to createcomprehensive digital solutions for the entire product lifecycle. We offer digital products and services across productionline design, simulation and verification, integrated delivery, and intelligent factory operation and maintenance, providingrobust technical support for intelligent manufacturing in the Industry 4.0 era.
Accelerating Industrial Digital Transformation
This platform delivers a range of digital functions, includingprocess quality inspection and optimization, fault warninganalysis, and remote operation and maintenance.
We provide advanced digital twin technology for variousworkstations, enabling real-time simulation of productionprocesses and states.
Our digital factory solution offers real-time feedback on theproduction and operational status of robots throughout theentire manufacturing facility.
E-Noesis Industrial Internet Platform
Digital Twin
Digital Factory
Digital Sheet Metal Bending Workstation: Breaking Down Data Silos in Production LinesCASE
As a key driver of intelligent upgrading in the manufacturing sector, Estun consistently integrates cutting-edgetechnology with industrial ecosystems. This approach promotes digital and intelligent transformation of enterprises,enabling clients to establish high-precision, highly flexible intelligent production systems. The result is an efficiencyrevolution and quality leap driven by intelligent manufacturing.
Improving Manufacturing Efficiency
Lighthouse Factories, renowned as the world'smost advanced factories, exemplify the pinnacle ofdigitalization in the industrial sector. These facilities notonly achieve seamless integration of digital and physicalrealms but also significantly improve productionefficiency and quality while reducing manufacturingcosts. This results in highly flexible and personalizedproduction capabilities. Estun robots, leveraginghigh-quality products, comprehensive services, rapiddelivery systems, and digital products and platforms,
Empowering Lighthouse Factories to Lead Ecient Manufacturing GloballyCASE
In automotive manufacturing, stamping is crucial for producing body panels such as doors, side panels, and hoods.To address the challenges of traditional, manual stamping lines - including low efficiency, safety risks, and a shortageof skilled young workers - Estun has developed China's first fully domestic large-load robot automotive body panelstamping line. This innovative line achieves integrated control throughout the entire process, from destacking andcleaning to stamping and handling, filling a significant gap in domestic high-end stamping equipment.For new energy vehicle body manufacturing, we have implemented an integrated control architecture thatcoordinates the real-time operation of robots, presses, and auxiliary equipment. Edge computing modules, workingin tandem with our E-Noesis industrial digitalization platform, process and display production orders, equipmentstatus, and production efficiency data in real-time. This system provides lean and intelligent production processmanagement alongside swift, convenient after-sales service, propelling the automotive manufacturing industrytowards intelligent and environmentally friendly transformation through high efficiency, stability, and flexibility.
Launching China's First Fully Localized Stamping Line for Automotive Body Panels Using Large-Load RobotsCASE
Boosting Production E?ciencyEnhancing Product Quality
have contributed to the establishment of four lighthouse network factories. Our industrial robots have enhancedquality and efficiency in the Zhengzhou Coal Mining Machinery Group's smart park, the first lighthouse factory in theglobal coal machinery industry. We collaborated with a global leader in the new energy sector to develop an intelligentlithium battery manufacturing facility. In automotive final assembly lines, our heavy-duty, high-rigidity, and high-precision robots are deployed for welding, handling, and gluing processes, ensuring top-quality commercial vehicleproduction. Our UNO series spot welding robots support automotive parts manufacturing, helping numerous newenergy, automotive, and industrial equipment enterprises boost their production efficiency.
We enhance product production efficiency through advancedtechnologies such as automated production lines andintelligent manufacturing. A prime example is the CTP bottomwater-cooled magnetic levitation module line project. Byimplementing new magnetic levitation transport technology,combined with servo quick-change tooling and highlycompatible fixtures, we increased efficiency from 38 PPM to72 PPM and reduced changeover time from 2 hours to 1 hour.
We ensure consistent productquality through standardizedproduction methods. For instance,in a TMC module assembly line,our innovative use of linear motorstacking increased throughput by25% and improved product yieldfrom 98.5% to 99%.
In factory production environments, despite the widespreaddeployment of MES (Manufacturing Execution System),the integration of all equipment directly into MES is oftenhampered by the diversity of production line equipment, non-uniform interface protocols, and the multiplicity of equipmentmanufacturers. This significantly impedes the automation andintelligence of sheet metal bending processes. To address thischallenge, Estun has introduced an innovative digital sheetmetal bending workstation based on its E-Noesis industrialdigitalization platform. This solution enables seamlessinterconnection between robot operational data and the factory's MES system, facilitating real-time work ordermanagement, production execution, equipment management, and program management. This achievement trulyrealizes end-to-end digital production across the entire production line. Through bidirectional data communicationand intelligent statistical analysis, the digital sheet metal bending workstation offers businesses precise and intuitiveequipment management, lean and intelligent production process management, and swift, convenient after-salesservice. This innovation propels the sheet metal manufacturing industry towards enhanced digitalization, integration,and intelligent informatization.
2024 Environmental, Social, and Governance (ESG) Report2324
Activating New Quality Productive ForcesActivating New Quality Productive Forces
Future Chapter
With the rapid advancement of digital applications, intelligent factories are experiencing an unprecedented surgein connected devices, leading to increasingly stringent requirements for real-time data collection and analysiscapabilities aimed at mining the potential value of production data. In September 2024, Estun partnered with Huaweito launch a cutting-edge, high-speed, and stable industrial network solution. This solution deeply integrates PLC(Programmable Logic Controller), servo systems, vision technology, and robotics. By utilizing TSN (Time-SensitiveNetworking) switches, it constructs a next-generation industrial network architecture that combines high precision,stability, and intelligence. The solution offers significant advantages in wide coverage, high mobility, large bandwidth,and low latency, driving robots from mere automation to true intelligence.
Collaborating with Huawei to Develop Next-Generation High-Speed, Stable Industrial Network SolutionsCASE
Launch of New Heavy-Duty Palletizing Robot to Reduce Manual Labor IntensityCASE
Industrial production often involves harsh workingconditions such as high temperatures, loud noise, anddense smoke, which can lead to occupational diseases andsafety incidents that threaten employee health. Estun'shigh-protection robots, boasting an IP67 protection rating,meet stringent industry requirements for resistance to hightemperatures, moisture, dust, corrosion, and acid-baseenvironments. These advanced robots significantly reducemanual labor intensity and associated hazards, helpingclients enhance their intrinsic safety measures.
Boosting Intrinsic Enterprise Safety
Innovation-Driven Development
As a pioneer in China's AC servo and motion control field, Estun consistently increases its R&D investment, adheringto short-, medium-, and long-term R&D strategies. The Company is committed to achieving breakthroughs in key coretechnologies, driving industrial robots and automation products towards higher precision, enhanced intelligence, andbroader application domains. This unwavering focus ensures product and technological leadership, aligning with thehighest international standards.
Estun consistently drives innovation through substantial R&D investments, allocating approximately 10% of its revenue tothis crucial area. The Company constantly refines its scientific research and innovation system by focusing on institutionalmechanisms, platform construction, and talent cultivation. This approach strengthens the foundation for scientificresearch and innovation, activating new engines and momentum for high-quality development.During the reporting period, the Company's R&D investment reached RMB 503 million, marking a 0.06% increaseyear-on-year. To further align business development with innovative talent and bolster in-house R&D capabilities, theCompany has aggressively recruited outstanding domestic and international professionals. With Nanjing as its R&D hub,Estun has integrated global R&D resources from Germany, the UK, and the USA. The Company has assembled a high-caliber R&D team led by international industry experts, Jiangsu Province's leading talents for entrepreneurship andinnovation, and highly qualified overseas-educated professionals. This initiative has resulted in the formation of threedistinct talent echelons: an automation innovation team, a high-tech engineering team, and an expert academic team. Bythe end of the reporting period, the Company boasted a professional R&D team of 1,032 individuals, including 320 withmaster's degrees or higher.
Enhancing R&D System
Governance
Impact, Risk, and Opportunity Management
Strategy and Management Approach
Indicators and Targets
Implement a system-level, forward-looking R&D strategyguided by the goal of "from following to surpassing" thattranslates customer needs into product requirements, withcontinued expansion into high-precision, heavy-duty, andfull-range product systems.Initiate an IPD (Integrated Product Development)transformation to enhance cross-departmental collaboration,achieving efficient integration of the entire process fromcustomer needs identification to market promotion.
Establish a comprehensive assessment system alignedwith IPD principles, incorporating key indicators such asproduct development cycle, product quality, and marketfeedback into the evaluation scope, enabling thoroughassessment of team and individual performance.
With Nanjing as the central R&D hub, integrateglobal R&D resources from Germany, the UK, andthe USA to form three specialized R&D teamsfocusing on robotics and intelligent manufacturingsystems, intelligent control core components, and adedicated European R&D center. Formulate theR&DManagement Standardsto constantly standardizeR&D management practices.
Introduce standardized processes and templatesfor phased management and rigorous monitoringof product development processes, scientificallyallocating resources to avoid waste and idleness,thereby improving product R&D efficiency, quality,and resource utilization.
1,0001,200
202420212020
Percentage of R&Dpersonnel (%)R&D investment amount(million RMB)
Number of R&DpersonnelPercentage of R&Dinvestment (%)
20222023
8.128.12
%%
29.3629.36
%%
1,108
1,201
1,032
503503
9.339.33
%%
10.3510.35
%%
10.8110.81
%%
12.5512.55
%%
27.5327.53
%%
30.8330.83
%%
31.1931.19
%%
28.8928.89
%%
Estun was honored with dual awards forOutstanding Productand
Advanced Technology under the 2024
China Intelligent WeldingIndustry Chain Pioneer Awards
at the GGII Annual Gala.
Palletizing robots can effectively replace humanlabor in goods classification, handling, and loading/unloading tasks, particularly in the handling ofhazardous materials such as radioactive or toxicsubstances. This significantly reduces workers'physical strain and ensures their personal safety.To address the growing demand for efficient full-layer palletizing solutions in industries such asbeverages and chemicals, Estun has continued todevelop sophisticated four-axis palletizing robotswith high load capacity, long reach, and highprecision. Building upon its existing range of 15KG,60KG, 120KG, and 180KG payload products, theCompany has newly introduced a 500KG heavy-duty palletizing robot. This innovation not onlyinjects strong momentum into industrial automationupgrades but also greatly reduces safety risksassociated with manual heavy lifting, achievingcomprehensive improvement in intrinsic safety.
2024 Environmental, Social, and Governance (ESG) Report2526
Activating New Quality Productive ForcesActivating New Quality Productive Forces
Future Chapter
As a technological pioneer in China's AC servo, motion control, and industrial robotics sectors, Estun rigorouslyadheres to the Industrial Robot Industry Regulatory Conditions (2024 Edition), theImplementation Measures for theAdministration of Industrial Robot Industry Regulatory Conditions (2024 Edition), and relevant domestic and internationallaws, regulations, and technical standards. With scientific ethics at its core, the Company integrates principles of safety,transparency, and traceability into product design, ensuring product reliability, data privacy control, and respect forintellectual property protection and industry-academia-research collaboration. We strictly prohibit any infringementand reject unfair competition practices. Focusing on intelligent manufacturing and industrial automation upgrades, wecontribute to "dual carbon" goals through transparent, traceable R&D processes and green, energy-efficient designs.We optimize human-machine interfaces in accordance with collaborative robotics standards, addressing workers' skilltransformation needs and promoting career development in human-machine collaborative scenarios. This approachensures that our technology and products consistently serve sustainable development and societal well-being.
To constantly invigorate R&D momentum and inspire employees to better leverage their innovative capabilities,the Company has established and re?ned mechanisms for cultivating and retaining scienti?c research talent. Thesee?orts are underpinned by innovation incentive systems such as theR&D Management StandardsandIntellectualProperty Reward Management Measures. We place paramount importance on retaining core talent, offeringcompetitive equity incentives to technical leaders and other high-potential personnel. We employ a diverse array ofincentive methods, including the R&D Star and Technical Innovation awards, as well as targeted rewards for inventorsand designers. These initiatives encourage employees to exercise their creativity and innovative thinking in theirrespective roles, thereby enhancing the Company's independent innovation capabilities.
Innovation Incentive Mechanism
The Company consistently enhances its global R&D capabilities, expanding its R&D innovation network. We activelyforge and deepen collaborations with prestigious domestic and international higher education institutions andresearch organizations. These strategic partnerships enable joint efforts to address key industry challenges andcore technical problems, fostering an ecosystem of resource sharing and mutual benefit, thus providing robusttechnical support for the Company's sustainable development. During the reporting period, Nanjing Estun SoftwareTechnology Co., Ltd. and Nanjing Estun Intelligent Systems Engineering Co., Ltd. successfully renewed their high-techenterprise status in the 2024 re-evaluation.
Open Innovation Ecosystem
Adhering to Scientific Ethics
InnovationPlatforms
R&DProgress
?
National Mechanical Industry AC Servo SystemEngineering Technology Research Center?
National Forging Machinery Control andFunctional Components Working Group?
National Postdoctoral Research Workstation?
Jiangsu AC Servo System Engineering
Technology Research Center?
Jiangsu Forging Machinery CNC System
Engineering Technology Research Center?
Jiangsu Electro-hydraulic Control System
Engineering Technology Research Center?
Jiangsu Key Laboratory for Industrial Robots
and Motion Control?
Jiangsu Science and Technology Innovation
Development Award Outstanding Enterprise?
Jiangsu Enterprise Technology Center?
Jiangsu Enterprise Postgraduate Workstation
?
Collaborate with Nanjing University of Science andTechnology and Jiangsu University on the Ministryof Industry and Information Technology's FutureIndustry Humanoid Robot project.?
Lead the 2024 Jiangsu Basic Research PlanProvincial-Municipal Joint Project.?
Spearhead frontier technology R&D projectsincluding the 2024 Jiangsu Major Science andTechnology Project and the 2024 Nanjing MajorScience and Technology Project.?
Participate in the 2024 Ministry of Industry andInformation Technology GZL Special Project andthe National KJZD Special R&D Project.
The Company maintains a system-level forward-looking R&D strategy guided by the strategic goal of "from followingto surpassing." Following a customer-centric approach, we employ a tightly coupled product development model toaccurately understand and meet customers' explicit needs through technological means while guiding their implicitneeds to provide an enhanced user experience. Based on Estun's system-level forward-looking R&D platform, theCompany has achieved comprehensive development in robot controllers, servo systems, and body design, with over 90%self-sufficiency in core robot components.Forward-looking R&D necessitates multi-disciplinary collaboration to maximize the performance of each component. Tothis end, we have initiated an IPD transformation to enhance cross-departmental cooperation, break down organizationalsilos, and achieve efficient integration of the entire process from customer needs collection and product planning todesign, development, and market promotion. Based on the Company's business realities in 2024, we focused on buildingproduct competitiveness, reinforcing strengths, and addressing weaknesses. Moving forward, we plan to further deepenthe IPD transformation, embedding its outcomes into our daily operations.
Forward-Looking R&D System
Optimizing R&D
Management
Process
EnhancingProduct R&DEfficiency
ImprovingProduct R&DQuality
2024 Key Initiatives2025 Work PlanIntroduce standardized processes andtemplates for phased management andrigorous monitoring of product developmentprocesses, ensuring timely and high-qualitycompletion at each stage, thereby enhancingthe overall product R&D management system.Achieve strategic allocation of resourcesbased on project priorities and requirements,minimizing waste and idle capacity, resultingin significant improvements in product R&Defficiency, quality, and resource utilization.Ensure product stability and reliability throughmulti-dimensional approaches from designreview to rigorous testing and verification,effectively reducing post-launch qualityissues.
Conduct a comprehensive review of existingIPD processes, with a focus on key cross-departmental collaboration nodes, streamlinecomplex procedures, and boost processefficiency.
Integrate digital tools to further enhanceproduct R&D efficiency, providing robustsupport for product development initiatives.
Establish a comprehensive assessmentsystem aligned with IPD principles,incorporating key indicators such as productdevelopment cycle, product quality, andmarket feedback into the evaluation scope,enabling thorough assessment of team andindividual performance.
R&D personnelwith bachelor'sdegrees
50.58%
R&D personnel withother educationalbackgrounds
18.41%
R&D personnel withmaster's degrees orabove
31.01%
Educational
Level
Age
R&D personnelaged 31-40
41.28%
R&D personnelaged 41 and above
18.70%
R&D personnel aged30 and under
40.02%
R&D Personnel Structure in 2024
2024 Environmental, Social, and Governance (ESG) Report2728
Activating New Quality Productive ForcesActivating New Quality Productive Forces
Future Chapter
Leveraging its comprehensive and advanced R&D system, Estun consistently deepens product design and processtechnology research and innovation to meet customers' evolving demands for higher quality and more reliableproducts. In 2024, the Company further advanced technological innovation and product upgrades, constantlyexpanding application areas, providing cutting-edge solutions and services, and enhancing market competitivenessand global presence.
Leading R&D Achievements
The CODROID 01 humanoid robot features an integrated joint modulewith fully in-house developed core components. This module offers rapidresponse, high torque density, strong load-bearing capacity, extendedservice life, stable operation, and low-noise performance with enhancedshock resistance.
Estun CODROID Humanoid Robot
The ER4-550-MI magnesium alloy robot is meticulously crafted,achieving approximately 33% weight reduction in components comparedto aluminum alloy counterparts. This innovation results in an 11%decrease in overall machine weight, a 5% improvement in high-speedperformance, and a 10% reduction in power consumption. It is well-suitedfor various industries, including 3C, new energy, food processing, andsemiconductor manufacturing.
New Ultra-Light Magnesium Alloy Robot
Leveraging proprietary dynamics algorithms and lightweight structuraldesign, this robot finds wide application in heavy industrial equipment,automotive, and building materials sectors. This breakthrough has ledto Estun's heavy-duty robots being included in the Ministry of Industryand Information Technology'sFirst (Set) Major Technical EquipmentTechnology Promotion and Application Guidance Catalog (2024 Edition),establishing them as a national benchmark for high-end equipment.
700KG Class Industrial Robot
Addressing challenges in automotive welding processes,the purpose-built UNO220-2700 spot welding robotincorporates a proprietary welding gun servo motor.It boasts a 40% improvement in response speed andfeatures online load identification, self-learning vibrationsuppression, and scenario-adaptive debugging. Thesecapabilities meet the demands for efficient, stable, andintelligent white body spot welding scenarios.
UNO Series High-Speed, High-Precision Spot Welding Robot
Employing a minimalist and common bus design,this drive achieves a 40% reduction in installationspace and over 20% comprehensive energy savings.When paired with the TRIO motion controller, it meetsdiverse requirements for injection molding machinemanipulators, parallel robots, electronic assemblyequipment, and 3/5-axis dispensing machines.
Five-in-One Servo Drive
Featuring robust load-bearing capacity and powerfulperformance, this controller supports simplifiedprogramming. It caters to the varied needs of multi-station rotary die-cutting machines, lithium batterypunching and cutting integrated machines, lithiumbattery winding machines, rotary printing presses,semiconductor encapsulation machines, andphotovoltaic sorting machines.
FLEX-7 Medium and Large-Scale Controller
Selected for the ChinaMachinery Industry Federation's
2023 Robot Industry
Top EnterprisesCultivation List
The projectKey Technologies andApplications of Robotic Operations for NewEnergy Vehicle Power Battery Modules
won thesecond prize in the 2023Guangdong Provincial Scienceand Technology Progress Award
Ranked rst
in theInternet Deep's
Top 50 Innovative RobotEnterprises listNew patents granted in 2024
Cumulative total ofgranted patents
Cumulative total of grantedinvention patents
New software copyrightsacquired in 2024
Cumulative total ofsoftware copyrights
Patents pending approval
2024 Environmental, Social, and Governance (ESG) Report2930
Activating New Quality Productive ForcesActivating New Quality Productive Forces
Future Chapter
Professional Quality ServiceEstun upholds its corporate mission of enhancing quality, constantly reinforcing full lifecycle product qualitymanagement. We ensure quality at every stage of R&D and production, while delivering superior service that swiftlyaddresses customer needs and resolves issues. This approach guarantees that our products and services not only meetbut exceed customer expectations.
Estun hosted the 2024 "Empowering Through Renewal, Winning the FutureTogether" Channel Partner Conference, fostering "trust + developmentpower" with channel partners. By collaborating across multiple dimensions,including products, technology, services, training, and system construction,we jointly build the motion control and robotics industry ecosystem.
Partner Collaboration
As a primary drafting unit for the national standardSafety of Machinery—Technical Requirements for Safety Relays, Estun actively participated informulating mechanical safety standards. Our efforts aim to promote theimprovement and upgrading of these standards, contributing to a saferand more reliable mechanical operating environment. In October 2024, wewere honored with the second prize of the Mechanical Industry Scienceand Technology Award by the National Technical Committee 208 of Safetyof Machinery of Standardization Administration of China.
Standard Co-construction
Industry Exchange
On November 15, Hao Mingjin, Vice Chairman of the Standing Committeeof the National People's Congress, conducted research in Jiangsu on"Promoting Innovative Development of Intelligent Robot Industry toAccelerate New Industrialization Process." His visit to Estun provided anopportunity to inspect our facilities and gain insights into the development,application, effectiveness, and enterprise perspectives of the intelligentrobotics sector.
On July 2, Estun took part in Premier Li Qiang's research symposiumin Jiangsu. Our Chairman, Wu Bo, delivered a keynote address as anenterprise representative. He emphasized the Company's commitment toits role as an industry leader in industrial robotics, pledging to work closelywith upstream and downstream partners to overcome challenges and driveintelligent manufacturing through innovative technologies.
On March 27, Estun received a delegation of diplomatic envoys as partof the "Diplomatic Envoys' Visit to Jiangsu" organized by the Ministry ofForeign Affairs, showcasing its technological advancements and industriallayout in intelligent and digital manufacturing. The Company held in-depth discussions with diplomatic representatives from 28 countriesand international organizations, including Japan, South Africa, Spain, andArgentina.
On December 20, at the 2024 World Intelligent Manufacturing Conference,Estun showcased its latest innovations, including motion control seriesproducts, new magnesium alloy robots, spot welding robot workstations,humanoid robots, and collaborative robots, to inject momentum andinnovative vitality into global industrial manufacturing.
In today's increasingly competitive market environment, quality has become pivotal for corporate survival and growth.To realize our vision of "zero quality defects," we launched a comprehensive quality revolution in 2024. Through asystematic, phased quality transformation plan, we focus on enhancing both product excellence and business processoptimization, thereby achieving a holistic improvement in quality management standards.
Quality Revolution
The overarching aim of quality revolution is to constructa forward-measurable and reverse-closed-loop qualitymanagement mechanism. By enhancing its qualityobjective management process and target system,Estun attempts to establish a comprehensive productquality issue management mechanism. The Companyhas built an all-encompassing quality assurance systemthat covers the entire process chain, ensuring stringentquality control from customer requirements to productdesign, production, and delivery, guaranteeing thatevery detail meets its exacting quality standards.
Quality Strategy
Quality issue management empowerment
Rated as aAAA Quality CreditRating Enterprise
of Jiangsu Province
for 2024
Recognized as an
Industrial Robot Industry
Compliant Enterprise
Estun consistently expands its collaborative reach by hosting and participating in national and industry standardformulations, attending industry conferences and exhibitions, and establishing extensive strategic alliances and closepartnerships. These efforts drive the reinvention of innovation and productivity, working alongside partners to promotehigh-quality industry development.
Deepening Industry Cooperation
Governance
Impact, Risk, and Opportunity Management
Strategy and Management Approach
Indicators and Targets
Initiate a quality revolution by refining the quality objectivemanagement system and product quality issue managementmechanism. Establish a forward-measurable and reverse-closed-loop quality management mechanism, ensuringquality control throughout the entire process from customerrequirements to product design, production, and delivery,ultimately achieving the "zero quality defects" goal.
Introduce innovative product failure rate and TOP issuemodel analyses, constantly refining the quality objectivemanagement process and target system. Conduct qualityobjective tracking, analytical discussions, and currentobjective reviews.
The Quality and Technology Department spearheadsthe construction of quality management systemand drives continuous quality enhancement. Duringthe reporting period, the Company issued 42institutional documents, comprising 28 revisions and14 new additions. Moreover, it successfully passedthe ISO 9001:2015 Quality Management System re-certification audit, effectively advancing productsafety management quality.
Implement robust quality risk identification,assessment, and improvement managementmechanisms for each stage of product development.Constantly enhance quality inspection processesand monitoring capabilities, implementing reliabilitytest standards that significantly surpass bothnational and international benchmarks to ensuresuperior product reliability.
2024 Environmental, Social, and Governance (ESG) Report3132
Activating New Quality Productive ForcesActivating New Quality Productive Forces
Future Chapter
To effectively implement quality strategic objectives and mitigate product quality and safety risks, the Quality and Technology Departmentoversees the construction of the quality management system and drives continuous quality improvement. This aligns with relevantquality laws and regulations, including theProduct Quality Law of the People's Republic of Chinaand theSupervision and ManagementRegulations for Industrial Product Manufacturing Units to Implement Quality and Safety Responsibilities. The department supervisesvarious sub-units, including the Process Technology Unit, the Process Quality Unit, the Supplier Quality Unit, the Customer Quality Unit, andthe Product Reliability Laboratory, ensuring quality control throughout the entire product lifecycle. Additionally, a Quality Expert Group hasbeen established to provide regular guidance on quality strategic objectives and improvement initiatives.The Company has instituted a comprehensive product quality management system. Based on product quality management systemrequirements and internal business and management structures, this system undergoes annual updates. In 2024, the Companyoptimized and updated quality system-related policies and processes across various domains, including product R&D, manufacturing,procurement and supplier management, quality management, and after-sales service. A total of 42 policy documents were issued,comprising 28 revisions and 14 new additions. Following the release of these policies, relevant personnel underwent training throughthe Estun Academy Online, recording over 3,500 attendances, effectively promoting continuous improvement in product safetymanagement quality.To ensure the effective operation of the quality system, we regularly conduct internal quality reviews, management assessments,and external certification audits. In 2024, the Company successfully passed the ISO 9001:2015 Quality Management System re-certification audit. This certification covers Estun Automation Co., Ltd., Estun Robotics Co., Ltd., and Estun Intelligent Technology(Jiangsu) Co., Ltd., while maintaining the effective operation of the quality system.
Quality Revolution Direction2024 Key InitiativesForward Measurable ControlEstablish clear qualityobjectives and indicators toensure continuous monitoringand evaluation of qualitymanagement effectiveness.
Backward Closed-loopCorrectionWhen issues arise, rapidly tracethem to their root cause andimplement effective measuresfor resolution.
Complete quality objective system empowerment, conduct thorough discussions, and reviewcurrent objectives. Introduce innovative product failure rate and TOP issue model analyses,and further refine the quality objective management process and target system. Issue the
Estun Quality Objective Management Systemto clarify quality objectives and heighten qualityawareness across all levels of the organization.Formulate theQuality Issue Management Process, implementing a unified, standardizedquality issue management system company-wide. Leverage quantitative managementmethods and digital closed-loop management to achieve integrated management and real-time monitoring of quality issues. Ensure that each problem is precisely identified, tracked,and resolved satisfactorily, significantly improving problem response time and resolutionefficiency.In 2024, we utilized robot products as a pilot for multiple quality improvement projects. Forinstance, our robot noise improvement team, through targeted QCC (Quality Control Circle)activities, identified key influencing factors and successfully reduced the noise defect ratefrom 4% at the year's start to below 0.5% by year-end. Our robot torque alarm improvementteam, through cross-departmental collaboration, in-depth problem cause analysis, and multi-faceted countermeasures, reduced torque-related alarms from 2% to 0.6% over the year,achieving an impressive yield rate improvement of over 50%.Quality improvement is a long-term, continuous process that necessitates phased and strategic implementation. Estunemploys a three-step approach as the guiding principle for designing quality improvement solutions. We have developeda three-year quality improvement plan, which is executed through phased implementation, annual reviews, and project-based operations. This approach aims to achieve enhancements in product quality, process efficiency, and overall qualitystandards.
Quality Improvement Planning
Comprehensive Quality Control
Product failure rate:
1.18
%, a decrease of
0.21
percentage points year-on-yearProcess pass-through rate:
94.08%, an increase of
6.92
percentage points year-on-yearFirst-time right rate:
99.69
%, an increase of
0.11
percentage points year-on-year
QualityInformation
Personnel Capability and Awareness, IT Systems
Quality StrategyQuality Objectives
Product Issue Management
CustomerSatisfaction
DevelopmentQuality
SupplierQuality
ManufacturingQuality
DeliveryQuality
CustomerRequirements
DevelopmentQuality
StageQuality Management Measures
Follow the IPD process for new product development, meticulously identifying and verifying quality risks from theplanning stage onward. At each technical milestone, experts from various fields are invited to participate in reviewsto comprehensively assess risks related to quality and technology, thereby improving R&D and design quality. In2024, more than 30 projects were reviewed, with over 50 risk points identified, all of which were addressed throughcorrective actions.For detailed information, please refer to the "Innovation-Driven Development/Enhancing R&D System" chapter modules.Update key supplier quality management process documents, including theIncoming Quality Control Process,Supplier Audit Management Measures, Material Certification Management Process, andSupplier PerformanceEvaluation Management for Production Materials. Specify detailed PPM targets for different categories and intensifymonthly supplier performance evaluations to drive continuous quality improvement.Conduct 15 specialized quality improvement projects for key suppliers, addressing issues such as cast ironappearance quality enhancement, CSOT quality improvement, Hauto teaching pendant quality enhancement, H1reducer quality improvement, and G1 nitrogen cylinder noise reduction.Implement new versions of quality agreements with suppliers, mandating guarantees on key quality aspects suchas dimensions and performance of critical materials before shipment, supplemented by regular on-site reports.Implement new versions of quality agreements with suppliers, mandating guarantees on key quality aspects such asdimensions and performance of critical materials before shipment, supplemented by regular on-site reports.Comprehensively identify critical processes and elements of process management, considering aspects ofpeople, machine, material, method, environment, and measurement. Focus on TOP issues to establish specializedimprovement mechanisms and launch over 20 quality improvement projects, covering first-time right issues,implementation of small and medium-load component run-in tests, optimization of material control methods andpressing fixtures, and test trajectory enhancement. Meticulously track the implementation and actual improvementeffects throughout the process.Conduct regular product process audits post-mass production to identify potential risk points. In 2024, over 30workshop process inspection audits were organized, identifying more than 300 improvement points, all of whichhave been successfully rectified.
Product Quality EnhancementPersonnel Capability EnhancementProcess Quality ImprovementPrioritize customer feedbackImprove manufacturing qualityEnhance component qualityElevate R&D quality
Apply quality methodologiesDevelop a structured qualification systemImprove quality-related communicationPromote quality digitalizationIntegrate quality requirementsinto core processesEliminate gaps betweenprocessesFocus on process effectiveness
Enhancing Quality Objective System
Problem-Solving Process
Resolve
Establish systematic methods to measure customer satisfaction and operationalperformance, clearly defining quality improvement directions.
ReportAssign
Sales Service
Quality
Strategy
Decomposition
SupplierQuality
ManufacturingQuality
2024 Environmental, Social, and Governance (ESG) Report3334
Activating New Quality Productive ForcesActivating New Quality Productive Forces
Future Chapter
StageQuality Management Measures
The Company harnesses digital technology to enhance its full lifecycle quality management, conducting comprehensive statisticalanalyses to inform quality control decisions and improve both the efficiency and accuracy of product quality management.
Digital Quality Management
ThemeActivity DescriptionQuality Culture Building PerformanceEstun consistently fosters a quality culture atmosphere that emphasizes full employee responsibility and participation, instilling the"zero defect" quality management concept in every team member. This approach aims to internalize quality consciousness andexternalize it through actions, constantly enhancing individual skills and quality awareness.
Building of Zero Defect Culture
Total attendance inquality training
Incoming Material QualityManagementWe utilize the E-Cology Office systemto bolster inter-departmental qualityinformation communication andcollaboration. Inspection plans andresults for raw materials are recordedin real-time within SAP, generatinginstant quality analysis data includingPPM, pass rates, and batch pass rates.Our SRM system transmits supplierperformance data in real-time,enabling data-driven supplier qualitymanagement.
Process Quality Management
Our MES system facilitates key materialtraceability, intelligent error preventionin assembly processes, real-timeonline monitoring of testing processes,production anomaly visualizationwith rapid response capabilities, andautomatic data collection and analysis forquality report generation. This ensurescontinuous product quality improvementand robustly supports our "Three No'sPrinciple" of quality management (noaccepting defects, no manufacturingdefects, no passing on defects).
Customer Service Quality
We have implemented aCRM (Customer RelationshipManagement) system thatprovides end-to-end service forcustomer information collection,feedback, processing, and closure,significantly enhancing thetimeliness and efficiency ofcustomer quality informationfeedback.
Digital Real-time Traceability Reduces Quality RisksCASE
Quality knowledge competition Quality month activities
Total quality trainingsessions conducted
Total qualitytraining hours1,167.5
"Golden Ideas"for QualityImprovement
Solicit and collect innovative suggestions fromall employees to improve quality management,promoting the implementation of "golden ideas."
A total of 154 proposals were submitted, 129 wereapproved, and 120 were implemented, achieving animplementation rate of 93%. Recognition was awardedto 52 individuals for their contributions.
DeliveryQualitySales andServiceQualityNon-conformingProductManagement
For detailed information, please refer to the "Reliability Management" module in this chapter.
For detailed information, please refer to the "Optimizing Customer Service" module in this chapter.
Expand product inspection criteria to enhance problem detection rates, ensuring issues are fully exposed on theproduction line for thorough and effective improvements.Establish an efficient customer response mechanism that includes immediate investigation and analysis of qualityincidents upon receiving customer complaints about product quality. Provide feedback report to customers andfacilitate multi-departmental collaboration to develop corrective, preventive and response measures based on finalinvestigation results, aiming to prevent recurrence of similar quality issues.Revise theNon-conforming Product Management Process,clarifying procedures and requirements for handlingnon-conforming products in the manufacturing process. Introduce Quality Alertrequirements, specifyingresponsible departments for each process to prevent the use and transfer of non-conforming and suspect products.During the reporting period, the Company incurred no penalties from regulatory authorities for violations of productand service quality and safety-related laws and regulations, nor did it experience any product recall incidents.
The Company has further optimized its MES system to achieve digital real-time traceability and quality alert functions for keymaterials and critical processes, substantially enhancing its quality risk prevention and control capabilities. In our automatedassembly line for main components, our proprietary MES system enables real-time data upload for processes such ascasting grabbing and reducer installation, establishing a robust quality alert and full-process traceability mechanism.We have innovatively introduced visual inspection technology, implementing process parameter monitoring nodes at theautomatic gluing stage to achieve dynamic quality control. Our flexible production system enables intelligent cross-workorder scheduling, improving assembly efficiency by over 80% and achieving a process capability index exceeding 1.67,ensuring a 100% compliance rate for core processes such as screw tightening. Additionally, our self-developed encodercircuit board automatic burning and coating line achieves full-process digital management from board separation toburning and coating. Robotic arms automatically complete burning parameter verification and functional testing, with datasynchronizing in real-time to the MES system, forming traceable electronic records. This approach reduces human factorvariables and further mitigates quality risks.
OperationalSkillsCompetitionQualityKnowledgeCompetitionLessonsLearnedSummaryQualityImprovementProjectEvaluationSpecializedQuality TrainingQuality CulturePromotion
Organize employee operational skills competitionsto assess participants' proficiency, accuracy, andspeed in specific skills or operations.Conduct assessments and competitions on qualitymanagement principles, methods, and tools topromote learning and mastery of quality knowledgeacross the organization.Facilitate experience sharing and summary sessions,disseminating insights from typical issues andsuccessful experiences in business operations tosimilar production and operational processes.Summarize, evaluate, and incentivize qualityimprovement projects conducted in 2024.Enhance employees' quality awareness and skilllevels through targeted quality training programs.Share diverse perspectives, experiences, andinsights on quality from personnel at all levels toenhance company-wide quality awareness andpromote quality management principles.
7 employee skills competitions were conducted; 52
individuals received awards.Offline and online quality knowledge competitions wereheld for various departments; 40 individuals receivedawards.3 company-wide lessons learned summary sharingmeetings were held; 18 cases were added to theknowledge repository.
43 improvement projects were executed throughout the
year; 6 outstanding cases were selected for recognitionin the annual review.Internal and external training sessions were conductedon 4 key tools: RPS, Six Sigma, FMEA, and CP.
18 quality culture promotion articles were published
in Estun Style online and the internal publicationEstuners.
2024 Environmental, Social, and Governance (ESG) Report3536
Activating New Quality Productive ForcesActivating New Quality Productive Forces
Future Chapter
To proactively prevent potential product safety and quality issues, Estun consistently refines its quality inspectionprocesses and enhances its monitoring technical capabilities. In accordance with product quality planning requirements,we conduct comprehensive inspections and various performance and functional tests on materials, semi-finishedproducts, and finished products. Robust management procedures and inspection standards are established at eachstage to comprehensively intercept product issues, ensuring that products constantly meet customer requirements.
In the rapidly evolving landscape of intelligent manufacturing, safety has become an indispensable core element.Estun rigorously adheres to product safety standards throughout the design, production, and usage processes. Wedevelop safety-focused product series and prioritize product safety management. Our approach includes implementingmeasures such as affixing warning labels to equipment and providing comprehensive usage and maintenanceinstructions in end-user manuals to prevent improper operation and safeguard customer health and safety.
The Company has established a reliability testing center comprising 9 specialized laboratories, 4 expert testing teams,30 professional testing directions, hundreds of advanced testing equipment and instruments, and thousands ofmeticulously developed testing methods and use cases. It covers critical testing areas including electronic components,electrical components, core mechanical components, complete robot units, and system reliability. The internal reliabilitytesting standards implemented by the Company significantly exceed national and international enterprise standardrequirements. Tests are conducted at the limits of standards, with high-acceleration extreme testing for key componentsand multi-sample long-cycle high-temperature accelerated life testing for all new products, thereby ensuring productreliability. Our products have undergone rigorous testing by renowned international third-party certification bodies suchas T?V Rheinland, SGS, UL, and ETL, successfully passing certifications including functional safety, European CE andUKCA, North American safety (UL), and motor energy efficiency.
Robot Functional Safety Solutions Empower Global Industrial ManufacturingCASE
Reliability Management
Product Safety Management
C E R T I F I C A T E
of Conformity
T?V Rheinland LGA Products GmbH - Tillystra?e 2 - 90431 Nürnberg
T?V Rheinland LGA Products GmbH - Tillystra?e 2 - 90431 Nürnberg
Page 1 of 2
Page 1 of 2The certificate of conformity refers to the above-mentioned product. This is to certify thatthe specimen is in conformity with the assessment requirement mentioned on the nextpage. This certificate does not imply assessment of the production of the product and doesnot permit the use of a T?V Rheinland mark of conformity.
| The certificate of conformity refers to the above-mentioned product. This is to certify that the specimen is in conformity with the assessment requirement mentioned on the next page. This certificate does not imply assessment of the production of the product and does not permit the use of a T?V Rheinland mark of conformity. | ||
| Date: 2024-04-26 | ||
| Registration No.: | |||
| Report No.: | |||
| Holder: | ESTUN AUTOMATION CO., LTD No.1888,Jiyin Road,Jiangning Development Zone, Nanjing, 211106 Jiangsu P.R. China | ||
| Product: | |||
C E R T I F I C A T E
of ConformityEC Council Directive 2006/42/EC
Machinery
C E R T I F I C A T E
of ConformityEC Council Directive 2006/42/EC
MachineryT?V Rheinland LGA Products GmbH - Tillystra?e 2 - 90431 Nürnberg
Page 1 of 2
Page 1 of 2This certificate of conformity is based on an evaluation of a sample of the above mentionedproduct. This is to certify that the tested sample is in conformity with all provision of AnnexI of Council Directive 2006/42/EC, referred to as the Machinery Directive. This certificatedoes not imply assessment of the production of the product and does not permit the useof a T?V Rheinland mark of conformity. The holder of the certificate is authorized to usethis certificate in connection with the EC declaration of conformity according to Annex II ofthe Directive.
| This certificate of conformity is based on an evaluation of a sample of the above mentioned product. This is to certify that the tested sample is in conformity with all provision of Annex I of Council Directive 2006/42/EC, referred to as the Machinery Directive. This certificate does not imply assessment of the production of the product and does not permit the use of a T?V Rheinland mark of conformity. The holder of the certificate is authorized to use this certificate in connection with the EC declaration of conformity according to Annex II of the Directive. | ||
| Registration No.: | |||
| Report No.: | |||
| Holder: | ESTUN AUTOMATION CO., LTD No.1888,Jiyin Road,Jiangning Development Zone, Nanjing, 211106 Jiangsu P.R. China | ||
| Product: | |||
The Company obtained the first cETLus certificate forindustrial six-axis articulated robots, signifying that ourrobot products fully comply with global mainstreamindustrial robot safety standards such as ANSI/UL 1740and CAN/CSA Z434 in terms of functional safety.
Our safety function series products, ESS (ESTUN SafetySolution), received China's first CE Machinery Directiveand Functional Safety Compliance Certificate. A totalof 12 safety functions passed ISO 13849 PL d, Cat.3certification, achieving spatial protection functions thatmeet stringent functional safety requirements.
Estun's Product Reliability Laboratory Receives CNAS AccreditationCASE
Guided by a customer-centric service philosophy, Estun leverages its comprehensive nationwide and global servicenetwork to optimize and upgrade service processes and experiences. We consistently explore innovative serviceofferings to forge deeper, long-term partnerships with customers.
Optimizing Customer ServiceIn scenarios involving human-machine interaction, various machine tool operations, stacker protection system forstereoscopic warehouses, and logistics production lines, every detail is crucial for production efficiency and personnelsafety. Estun has developed and launched the innovative ESS (ESTUN Safety Solution) series of products. Key functionssuch as safety emergency stop, safety protective stop, and static monitoring have comprehensively passed rigoroussafety standard certifications. These products not only support the PROFIsafe safety communication protocol but alsoadapt to integration requirements of high-density production lines in industries such as automotive manufacturing.They can be widely applied in handling, palletizing, welding, assembly, and other fields, significantly enhancing thereliability and safety of production processes.The ESS series products offer flexible configuration of functional safety zones. They can be customized with variousfunctional safety sector areas according to specific needs, meeting the human-machine collaboration requirements ofdifferent types of workstations. Within the safety zone, robots operate at normal speed, ensuring optimal productionefficiency. When entering the alert zone, robots automatically decelerate to ensure equipment and personal safety.Once the danger zone is breached, robots immediately cease operation, effectively guaranteeing production safety.
Estun's Product Reliability Laboratory is constructed and operated in strict
accordance with the ISO 17025 management system. We consistently enhance our
extreme testing methods and equipment, establishing HALT (Highly Accelerated
Life Test) testing capabilities and formulating comprehensive product extreme
reliability testing requirements. We proactively conduct extreme destructive
testing on our products to uncover potential design issues and constantly elevate
product performance limits. Additionally, we have introduced a 64-cubic-meter
ultra-large environmental test chamber to conduct environmental simulation
and accelerated life testing on heavy-duty robot bodies under load, ensuring
exceptional reliability of products even in the most challenging environments.
In December 2024, following a rigorous audit by the China National Accreditation
Service for Conformity Assessment, our Product Reliability Laboratory obtained
the CNAS accredited laboratory qualification. This accreditation encompasses
three major areas: industrial robots, electromagnetic compatibility, and electrical
safety reliability. It covers six product types including motors, industrial robots,
variable-speed electrical drive systems, products for industrial environments,
general electronic and electrical products, and industrial, scientific, and medical
equipment, aligning with 37 standards including GB, IEC, and CISPR. This
remarkable achievement underscores that Estun's product reliability laboratory
management and testing capabilities have attained a level of excellence
recognized both domestically and internationally.
Governance
Impact, Risk, and Opportunity Management
Strategy and Management Approach
Indicators and Targets
Upholding the customer-centric service philosophy, theCompany offers professional technical support throughdedicated teams, provides industry-wide solution coverage,maintains an extensive service network across China andabroad, and delivers 24/7 after-sales support to ensure rapidresponse to customer needs and timely issue resolution.
Implement a robust monitoring and assessmentmechanism, establishing annual targets for key metricssuch as customer satisfaction, complaint rates, and issueresolution timeliness. Integrate them into the evaluationsystem and directly link to employee compensation andcareer advancement opportunities.
The Global Delivery and Service Departmentoversees customer relationship management andhas established an "Iron Triangle" customer supportteam, delivering high-caliber customized services,expert advice, and tailored solutions.
Establish diverse channels for complaints andfeedback, actively engaging with and respondingto customer suggestions and opinions. Conductcomprehensive annual customer satisfactionsurveys, with targeted improvements made in areasidentified as having lower satisfaction rates.
2024 Environmental, Social, and Governance (ESG) Report3738
Activating New Quality Productive ForcesActivating New Quality Productive Forces
Future Chapter
Estun consistently refines its organizational structure to meetdiverse customer needs, with a focus on enhancing customerexperience. The Global Delivery and Service Departmentspearheads the establishment and improvement of customerrelationship management systems, conducts regular customervisits, manages customer satisfaction, and oversees on-sitedelivery and commissioning. The "Iron Triangle" customersupport team provides high-level customized services, expertadvice, and tailored solutions, ensuring rapid response tocustomer needs, swift problem resolution, and efficient projectcompletion. Through relentless improvement and innovation,we deliver exceptional products and services, earning customertrust and striking an optimal balance between maximizingcustomer value and company performance, achieving a win-winoutcome for both the customer and the Company.
Enhancing Service Capabilities
To gain comprehensive insights into customer satisfaction with Estun's products and services, we conduct thoroughannual customer satisfaction surveys. The survey results serve as a crucial foundation for enhancing our customerrelationships. In accordance with ourCustomer Satisfaction Survey Management Process, we design detailed satisfactionquestionnaires covering critical aspects such as product quality, delivery time, after-sales service, pre-sales assessmentsolutions, and pricing. We distribute electronic questionnaires to our entire customer base, implementing incentivemechanisms to optimize response rates and quality. Upon completion of each customer satisfaction survey, we generatea comprehensive report that meticulously analyzes the measurement methods and survey results. This in-depth analysisdrives continuous improvement in our service quality and standards, bolstering our market competitiveness. In 2024,we achieved an overall customer satisfaction score of 89.76 points, marking an increase of 2.56 points year-on-year andsurpassing our annual target of 85 points.
Customer Satisfaction Management
Customer Complaint Resolution
Inquiries collected andresponded to by 400 callcenter1,797
Customer complaintsprocessed
Customer complaintresolution rate
%
AI Intelligent Aer-Sales Assistant Enhances Service EciencyCASE
The Company has established a comprehensive management mechanism providing24/7 technical support throughout the product lifecycle, encompassing pre-sales, sales,and after-sales stages. This mechanism clearly delineates the service content, qualityrequirements, and response times for each stage of the process, thereby ensuringconsistency and standardization of service delivery. In 2024, the Company furtherrevised theAfter-sales Service Management Manual, adding new process guidelines andestablishing standardized service protocols. Approximately 200 SOP documents for faulthandling were also updated, covering key areas such as vision systems, servo systems, arcwelding, spot welding, and general applications.The Company has implemented a digital and intelligent customer management modelapproach. Our CRM system provides detailed categorization and data analysis of variousmetrics, including in-transit work hours and repair waiting times. This enhancement has ledto improved service efficiency and faster response times to customer needs. In addition,the Company has fully upgraded the WeChat-based repair request process, enablingcustomers to easily submit repair requests and track repair progress in real time, bettermeeting customer needs.
The Company actively expanded its after-sales service network, establishing 75 service locationsworldwide. All technical service teams at these locations have undergone systematic training. In2024, over 70 training sessions were conducted for technical service personnel, totaling morethan 500 hours and recording over 12,000 attendances. These initiatives have significantlybolstered our overall service capabilities in the after-sales market.To help customers and partners better and more efficiently learn to use Estun robots, theCompany provided over 200 specialized training sessions in 2024. These sessions encompassedmore than 1,800 hours of instruction, covering essential topics such as robot operation,programming, and common fault troubleshooting.
Listen andUnderstand
We attentively listen to customer complaints, comprehend associated losses, and assessthe urgency of each situation to fully grasp the issues and sources of dissatisfaction.Record andOrganize
We meticulously document and categorize key issues and core pain points from customercomplaints, including relevant data and consequences of anomalies, to facilitate thoroughanalysis and effective resolution.Categorize andRespond
We classify complaints into pre-sales marketing issues and after-sales global deliveryissues. Pre-sales concerns are promptly forwarded to relevant pre-sales personnel, whileafter-sales issues are directed to the appropriate after-sales manager based on customerattributes, ensuring swift response and demonstrating our commitment to addressingcustomer concerns.Investigate andAnalyze
We form dedicated investigation teams to gather necessary information and data, gainingcomprehensive insights into specific customer issues. The responsible departmentcollaborates closely with relevant departments to conduct root cause analysis.ProposeSolutions
We conduct immediate emergency handling of issues as per customer requirements.Based on in-depth problem analysis, we provide tailored solutions and communicatethoroughly with the customer for confirmation. Solutions are promptly implemented forproducts in use at customer sites, inventory, and our work-in-progress and stock. TheQuality Department conducts rigorous quality tracking.
Summarize andImprove
We analyze common themes and trends in complaints to drive continuous improvementin our products, processes, and service quality. For product quality issues, we trackfeedback on the subsequent three shipments following the implementation of permanentpreventive measures to prevent recurrence of similar issues.
Customer Complaint Handling Process
StandardizingServiceManagement
Processes
Optimizing andUpgrading ServiceContent
Strengthening
Professional
Service Support
Specialized training for major clients
Indicator2024 Target2024 PerformanceTarget Achievement RateAverage problemresolution time (days)
2117.6116.2%
Leveraging years of technological expertise and advanced intelligent digital integration techniques, Estun hasdeveloped an innovative AI-powered after-sales solution. This cutting-edge solution seamlessly integrates naturallanguage processing, advanced knowledge graphs, machine learning, and deep learning technologies with anefficient dialogue management system. It offers intelligent Q&A capabilities, real-time responses, a smart database,problem analysis, and solution assistance, providing a comprehensive one-stop intelligent after-sales serviceexperience for industrial robots.
The Company has implemented a robust and efficient customer complaint handlingmechanism, underpinned by comprehensive internal policies such as theGuidelines forCustomer Complaint Submission ProcessandCustomer Complaint Handling Procedure.We have designated specialized personnel to manage customer complaint incidents,facilitating the development of tailored solutions and ensuring effective communicationwith customers. Customers can lodge complaints or provide feedback through multiplechannels, including a 24-hour toll-free service hotline (400-025-3336), WeChat, and ourofficial website. We meticulously categorize all complaint information and establish specificresponse and processing timelines. A robust monitoring and assessment mechanism hasbeen implemented, integrating key metrics such as customer satisfaction, complaint rates,and issue resolution timeliness into our evaluation system. These metrics are directly linkedto employee compensation and career advancement opportunities, ensuring that everycomplaint is addressed and resolved within the stipulated timeframe.
2024 Environmental, Social, and Governance (ESG) Report3940
Promoting High-Quality DevelopmentPromoting High-Quality Development
Governance Chapter
Governance Chapter
Promoting High-QualityDevelopment
Contributing to UN SDGs
2024 Environmental, Social, and Governance (ESG) Report4142
Promoting High-Quality DevelopmentPromoting High-Quality Development
Governance Chapter
Enhancing Corporate Governance
Estun firmly believes that a robust governance structure is the cornerstone of sustainable corporate development. TheCompany has thoroughly refined its corporate governance system, establishing a modern enterprise organizationalstructure and operational mechanism, thus laying a solid foundation for high-quality development.
Estun strictly adheres to the requirements of laws, regulations, and normative documents such as theCompany Law of thePeople's Republic of China, theSecurities Law of the People's Republic of China, theMeasures for the Administration ofStock Exchanges, theCode of Corporate Governance for Listed Companies, theRules Governing the Listing of Stocks on theShenzhen Stock Exchange, and theShenzhen Stock Exchange Self-Regulatory Guidelines No. 1 – Standardized Operationsfor Companies Listed on the Main Board. The Company has established a corporate governance structure centered onthe General Meeting of Shareholders, the Board of Directors, and the Board of Supervisors. Each body has developed andrefined its working systems and rules of procedure, forming an effective mechanism with clear rights and responsibilities,mutual communication, and checks and balances among the power organ, the decision-making body, the supervisory body,and the executive body, ensuring the standardization and effectiveness of the corporate governance structure.In accordance with relevant laws and regulations, the Company has formulated a series of systems including theArticles ofAssociation, Rules of Procedure for General Meeting of Shareholders, Rules of Procedure for Board of Directors, Rules ofProcedure for Board of Supervisors,andWorking System for Independent Directors, clarifying the operational norms for thethree main governance bodies. During the reporting period, the Company newly established theAccounting Firm SelectionSystemandPublic Opinion Management System, and completed the revision of theManagement System for Directors,Supervisors, and Senior Management Holding and Trading Company Shares, further enhancing its corporate governancesystem.
Corporate Governance System
Estun fully recognizes that the independent director system is a crucial safeguard for promoting the standardizedoperation of listed companies, maintaining their overall interests, and protecting the legal rights of minority investors.The Company strictly adheres to the requirements outlined in theMeasures for the Administration of IndependentDirectors of Listed Companiesby formulating and actively implementing theIndependent Director Systemand theWorking System for Independent Director Special Meetings.It rigorously follows the qualification requirements andappointment/dismissal procedures specified in theIndependent Director Systemto select and appoint qualified expertsand authoritative figures as independent directors, fully leveraging their role in corporate governance.The Board of Directors comprises 9 members, with independent directors accounting for 33.33% of the total. None ofthe independent directors hold any form of company shares. These directors do not directly participate in companymanagement, thereby reducing the risk of conflicts of interest and effectively serving as a check and balance.Independent directors constitute the majority and chair the Audit Committee, Nomination Committee, and Remunerationand Appraisal Committee under the Board, ensuring the objectivity and fairness of Board decisions. The Company hasestablished a Board performance evaluation mechanism, with the Remuneration and Appraisal Committee responsiblefor formulating and regularly conducting assessments of company directors. During the reporting period, the Companyconducted performance evaluations covering all Board members.The Company provides independent directors with adequate working conditions and personnel support to fulfilltheir responsibilities. It also ensures their right to information by regularly briefing them on company operations andproviding relevant materials, ensuring they have access to sufficient resources and necessary professional opinionswhen performing their duties. In 2024, the Company organized 4 special meetings for independent directors, where theyreviewed matters such as related party transactions. In addition to arranging for independent directors to attend on-site general meetings of shareholders, Board of Directors meetings, and Board of Supervisors meetings, the Companyalso organized and facilitated on-site inspections of key subsidiaries, allowing independent directors to gain a deeperunderstanding of subsidiary operations and providing robust support for their comprehensive fulfillment of duties.
Board Independence and Effectiveness
general meetings ofshareholders were convenedthroughout the year,
meetings of the Board ofDirectors were convenedthroughout the year
meetings of the Board ofSupervisors were convenedthroughout the year
proposals reviewed andapproved
proposals reviewed andapproved
proposals reviewed andapproved
with
with
with
GeneralMeeting ofShareholders
Board of
Directors
Board ofSupervisors
Governance
Impact, Risk, and Opportunity Management
Strategy and Management Approach
Indicators and Targets
The Company fully considers board diversity to enhance theprofessional competence and decision-making capabilities ofits board members. It also strengthens the role of independentdirectors in corporate governance to improve the rationality andquality of board decisions.
Constantly improve the corporate governance structure,enhance information disclosure transparency, and strictlycomply with regulatory requirements to effectively protectshareholders' legal rights and interests and promote theCompany's long-term stability and sustainable development.
The Company has established a comprehensive andefficient corporate governance structure comprising theGeneral Meeting of Shareholders, the Board of Directors,the Board of Supervisors, and the management team. Ithas also put in place a governance mechanism with clearlydefined responsibilities and standardized operations,effectively ensuring fairness and rationality in corporatedecision-making.
Implement reasonable remuneration policies and plansfor directors and senior management, linking theircompensation to company performance and individualachievements to ensure alignment of interests.Establish a comprehensive information disclosure systemto ensure investors can obtain timely and accuratecompany information, strengthen communication withinvestors, enhance company transparency and credibility,and build strong relationships with the investor base.
The General Meeting of Shareholders is the Company's highest authority.Estun convenes and holds general meetings of shareholders in strictaccordance with theArticles of Association, Rules of Procedure for GeneralMeeting of Shareholders, and other relevant regulations. The Company fullyrespects all shareholders, ensuring their right to know, participate in, andvote on significant company matters. It guarantees equal treatment andfull exercise of legal rights for all shareholders, with particular attentionto minority shareholders. As required by regulatory authorities, theCompany publishes resolutions and legal opinions of general meetings ofshareholders.Reporting to the General Meeting of Shareholders, the Board ofDirectors serves as the decision-making body for company operationsand management and the highest decision-making authority for ESGmanagement. The Company regulates the Board's deliberation process anddecision-making procedures in accordance with theRules of Procedurefor Board of Directors, promoting effective performance of duties bydirectors and the Board as a whole. The Board has established fivespecialized committees: the Audit Committee, the Nomination Committee,the Remuneration and Appraisal Committee, the Strategy Committee,and the Environmental, Social, and Governance (ESG) Committee. Eachcommittee performs its duties according to theArticles of Associationandits implementation rules, providing informed recommendations to the Boardand enhancing its standardized operation and scientific decision-makingcapabilities.As the supervisory body, the Board of Supervisors is accountable to theGeneral Meeting of Shareholders. It effectively oversees the Company'sfinances and ensures legal compliance of the Board of Directors andmanagement in performing their duties. This oversight promotes theCompany's healthy, stable, and sustainable development while safeguardingthe legal rights and interests of both the Company and its shareholders. As ofthe end of 2024, the Board of Supervisors consisted of 3 members, including1 employee supervisor and 2 female supervisors.
2024 Environmental, Social, and Governance (ESG) Report4344
Promoting High-Quality DevelopmentPromoting High-Quality Development
Governance Chapter
To enhance the scientific nature and rationality of Board decision-making, Estun implements a Board member diversitypolicy. This approach carefully considers a wide range of factors including cultural and educational backgrounds,work experience, gender, and age in the composition of the Board. By embracing this diversity, the Company benefitsfrom a more holistic perspective and a broader range of viewpoints, thereby facilitating the professionalization andefficient operation of the Board. The directors possess a balanced combination of knowledge and skills, with theoreticalknowledge and practical experience in engineering, mechanical engineering, electrical automation, accounting,economics, business administration, and other fields. As the convener of the Audit Committee, independent directorMr. Chen Heng is a certified public accountant and senior accountant. Serving as the CFO of other listed companies,he brings extensive financial background and experience to implement effective internal financial management and riskcontrol.The Company continues to promote the standardized operation of the Board of Directors and Board of Supervisors,providing ample internal and external training resources to help directors, supervisors, and senior management enhancetheir performance capabilities. During the reporting period, the Company organized 11 training sessions for thesekey personnel, covering topics such as interpretations of 2024 capital market policies and new regulations, as well asnews communication strategies and public opinion management for Jiangsu listed companies, helping directors moreeffectively fulfill their responsibilities.
Board Skills and DiversityNote: * indicates that an independent director serves as the committee chair.
PositionNameGender
Professional Knowledge and SkillsStrategicPlanning
IndustryExperience
RiskManagement
Finance &Accounting
Legal
OperationsManagementChairmanWu BoMale????Vice Chairman, General ManagerWu KanMale?????
Director, Deputy General ManagerZhu ChunhuaMale???Director, Deputy General ManagerZhou AilinMale???
Director, CFO, Deputy General ManagerHe LingjunMale??????
DirectorChen YinlanFemale???
Independent DirectorChen HengMale??
Independent DirectorFeng HutianMale?
Independent DirectorTang WenchengMale??
NamePosition
Direct Shareholding
(Shares)
Multiple of Annual
Compensation
Wu BoActual Controller, Chairman110,996,700Not applicable
Wu KanVice Chairman, General Manager1,263,03321.63Zhu ChunhuaDirector, Deputy General Manager68,6001.55Zhou AilinDirector, Deputy General Manager164,5003.45He LingjunDirector, CFO, Deputy General Manager180,0002.41Chen YinlanDirector58,0002.06Yin ChenggangDeputy General Manager24,9000.81
ZHANGXING·ZHUDeputy General Manager62,0000.50
Ownership of Directors and Senior Management
Number of directors by educational level
Femaledirectors
Directors aged 50and under
Directors aged
61 and above
Directorsaged 51-60
Maledirectors
In 2024, the Chairman did not receive compensation from the Company. Other non-independent directors holdingpositions in the Company receive salaries based on their respective roles without additional director allowances.Their compensation is primarily determined by the Company's operating conditions, the scope and responsibilities ofmanagement positions, their strategic importance, and performance evaluations.
1.
??The multiple of annual compensation of director/executive is calculated as: (Year-end stock price × Number of sharesheld by director/executive) / Annual compensation of director/executive.
2.?
Mr. Wu Bo does not receive compensation from the Company; therefore, the multiple is not applicable.3.
??Mr. Yin Chenggang and Mr. ZHANGXING ZHU have been serving as Deputy General Managers since April 30, 2024.
Their reported compensation is calculated from April 30, 2024. The multiple of annual compensation is estimated
based on an annualized salary.
Director and Senior Management Compensation Policy
Ratio of General Manager'scompensation to averageemployee compensation
303.55
%
Performance-based SalaryBasic Salary
ESG-related ComponentsWorkSafety
Quality and
Service
RiskManagement
TalentDevelopment
EmployeeSatisfaction
Director and Senior Management Compensation Structure
Independent Directors' Composition and Meeting Records of Board Specialized CommitteesBoard Specialized Committee
Number of Independent
Directors
Number of Meetings
Held
Independent Directors'Attendance Rate
Strategy Committee12100%
Audit Committee*25100%Remuneration and Appraisal Committee*22100%
Nomination Committee*22100%Environmental, Social, andGovernance (ESG) Committee
11100%
Notes:
Number of directors by genderNumber of directors by age
Directors withdoctoral degrees
Directors withbachelor's degrees
Directors withmaster's degrees
Estun has established a fair and effective compensation management and incentivemechanism for directors and senior management. The Remuneration and AppraisalCommittee is responsible for formulating and reviewing the compensation policies andplans for directors and senior management. These policies and plans are submitted to theBoard for approval, and then to the general meetings of shareholders for final ratificationbefore implementation, alongside comprehensive information disclosure.The Company conducts thorough evaluations based on annual business performance,senior management' job responsibilities, and the achievement of annual work objectives.Compensation and performance bonuses for senior management are determinedbased on these evaluation results, encouraging effective fulfillment of their duties. TheNomination Committee and the Remuneration and Appraisal Committee are tasked withnominating senior management and assessing their work capabilities, performance, andgoal achievement to determine annual compensation packages and year-end bonuses.Additionally, the Company has implemented a multi-tiered evaluation and incentivemechanism to further enhance the motivation and creativity of managers and drivecontinuous growth in corporate performance.
2024 Environmental, Social, and Governance (ESG) Report4546
Promoting High-Quality DevelopmentPromoting High-Quality Development
Governance Chapter
While focusing on its own development, the Company maintains an unwavering investor-centric approach. Since our listing,we have consistently implemented a cash dividend policy that balances continuity and stability, in strict accordance withourArticles of Association. This approach ensures that we constantly share the Company's success with investors. Duringthe reporting period, the Company formulated an annual profit distribution plan based on actual operating conditions anddevelopment strategy, while safeguarding normal operations and long-term growth prospects. The independent directorsdiligently fulfilled their responsibilities by expressing clear, unbiased opinions on the formulation and decision-making process ofthe profit distribution plan. Relevant resolutions underwent thorough review and approval by the Board of Directors and Boardof Supervisors before submission to the general meetings of shareholders, effectively protecting shareholders' legal rights. In2024, the Company implemented the 2023 profit distribution plan, distributing a cash dividend of RMB 0.60 (pre-tax) for every 10shares, with a total cash dividend of RMB 52.02 million (pre-tax).
Estun places high importance on investor relations management. The Company strictly adheres to relevant provisions oftheCompany Law of the People's Republic of China, theSecurities Law of the People's Republic of China, theGuidelinefor Investor Relations Management of Listed Companies, and other pertinent laws and regulations, as well as theCompany'sArticles of Association. It has formulated theInvestor Relations Management Systembased on the principlesof fairness, justice, openness, and objectivity, ensuring equal treatment of all investors and safeguarding their rightto information and other legal rights. The Company effectively protects the rights of minority shareholders, ensuringthey can attend general meetings of shareholders in person or exercise their voting rights through online channels. Forsignificant matters that may affect the interests of minority investors, the Company adopts separate vote counting anddisclosure methods for minority shareholders to safeguard their rights to exercise shareholder privileges.
Protection of Investor Rights and Interests
The Company has formulated and strictly implemented the Information Disclosure Management SystemandConfidentiality Management System, which standardize the transmission process, review management, disclosureprocedures, confidentiality measures, file management, and accountability for information disclosure. We fulfill ourinformation disclosure obligations in accordance with the law, meticulously preparing, approving, and disclosingad hoc announcements and periodic reports. Our information disclosure work is carried out in a true, accurate,complete, and timely manner, constantly improving the quality of information dissemination. During the reportingperiod, there were no instances of false records, misleading statements, major omissions, or other improperdisclosures in the Company's information disclosure.The Company adheres to an investor relations philosophy grounded in sincerity, compliance, and professionalism.We maintain robust, comprehensive, and effective communication with investors interested in the Company'sdevelopment through various channels. These include telephone and email correspondence, the cninfo.complatform, on-site investor visits, performance briefings, brokerage strategy meetings, and large-scale exhibitionssuch as the China International Industry Fair (CIIF). This multi-faceted approach ensures that shareholders andthe broader investor community are promptly informed of significant company events and operational conditions,fostering a positive and interactive relationship between the enterprise and its investors.
Periodic reports disclosed
On-site investor research receptions in 2024
Standardizing Related Party Transactions
Investor Returns
Investor Communication
Information Disclosure
To standardize related party transactions, reduce unnecessary dealings, protect shareholders' legal rights, and maintain fairness and justicein transactions between the Company and related parties, Estun has established comprehensive systems. These include theArticlesof Association, Rules of Procedure for General Meeting of Shareholders, andRelated Party Transaction Management Measures. Theseframeworks provide detailed guidelines on the scope, review processes, disclosure requirements, and recusal procedures for relatedparty transactions. This ensures fairness and impartiality in decision-making for all shareholders and promotes orderly and standardizedmanagement of such transactions.During the reporting period, all related party transactions conducted by Estun were rooted in normal production, operational, and businessdevelopment needs. These transactions adhered to fair market principles, with pricing deemed equitable and reasonable. All necessarydecision-making procedures and information disclosure obligations were meticulously fulfilled. The Company's independent directorsconducted thorough pre-reviews of significant related party transactions and expressed unbiased opinions, ensuring that these dealingsaligned with the overall interests of shareholders.
Received the 15th PegasusAward for InvestorRelations Management ofChinese Listed Companies
by Securities TimesHonored with theBest InvestorRelations Team Awardinthe 5th Elite Board SecretarySelection by Cailian Press
Risk and Compliance Management
Estun consistently enhances its risk management and internal control systems, fostering a conducive internal environment for enterprise riskcontrol and operational efficiency, thereby ensuring healthy and sustainable development.
Ad hoc reports disclosed
Responses on
irm.cninfo.com.cn
Performance briefings
and other investor
communication events held
1,559
Investors received
Investor research
sessions hosted
100+
Calls from individual
investors answered
Implement a coordinated mechanism across business units. Promptly facilitate cross-departmentalcommunication by the Board Secretary when addressing investor concerns, particularly hot topics, witheach business unit providing swift feedback. Ensure timely and effective information transfer between theCompany and the market.Optimize the Company's showroom, constantly updating exhibits to showcase the latest products. Openfactory tour routes, allowing investors participating in on-site research activities to directly observefacilities, products, production processes, and employee working environments, thereby enhancing theirunderstanding and appreciation of the Company.Recognize the diverse investor base, and flexibly adjust the timing of visits and exchanges with overseasinvestors to ensure equal participation opportunities for all investor types.Engage professional agencies to produce promotional videos that elucidate the Company's fundamentalsand address key investor concerns. Utilize these materials in China A-share overseas investor exchangemeetings.Actively manage public opinion and conduct strategic news dissemination. Maintain regularcommunication channels with major financial media to convey the Company's value proposition.Proactively address potential public opinion events that could significantly impact stock price fluctuations,providing reasonable guidance to manage expectations and mitigate the spread of misinformation thatcould mislead investors.Produce and release user-friendly H5 infographics for semi-annual and annual reports, employinggraphical representations to clearly and effectively communicate the Company's highlights and conductcapital brand marketing.
Impact, Risk, and Opportunity ManagementIndicators and Targets
Formulate annual audit work plans encompassing theCompany's headquarters, wholly-owned and controlledsubsidiaries. The audit scope covers core business operations,critical issues, and high-risk areas. Problem rectification isintegrated into performance evaluations to ensure effectiveresolution of issues identified during audits.Regularly review risk points across various businessmodules, conduct comprehensive risk assessments,delineate control measures, and improve supervisorymechanisms to enhance the Company's risk preventionand control capabilities.Periodically evaluate the efficacy of risk managementand internal control systems, and conduct targetedaudits to ensure the robust operation of the Company'sinternal control compliance system and mitigateoperational risks.
GovernanceStrategy and Management Approach
Focus on the triad of "audit + internal control + compliance"to persistently refine the internal control compliancemanagement system.Bolster the tax management system to ensure full compliancewith corporate tax obligations. Conduct regular tax self-inspections to constantly enhance tax managementcompliance capabilities.
The Board of Directors oversees the establishment,maintenance, and effective implementation of riskmanagement and internal control compliance. TheBoard's Audit Committee scrutinizes and reviews theeffectiveness of operational risk management andinternal control systems.The internal audit body (Audit Department) orchestratesand executes daily audit work, inspecting andsupervising the establishment and implementation ofinternal control systems.An ESG Leadership Group has been instituted to identifyand manage ESG risks and opportunities.
2024 Environmental, Social, and Governance (ESG) Report4748
Promoting High-Quality DevelopmentPromoting High-Quality Development
Governance Chapter
Estun has instituted a comprehensive risk management system by constantly refining itsRisk Management System,establishing and enhancing risk prevention mechanisms, and improving risk identification and assessment protocols, riskcontrol and response strategies, and risk culture development. The Company consistently optimizes risk managementprocesses to ensure the healthy and stable development of its diverse business operations.
Strengthening Risk Prevention and Control
The Company has developed a robust risk managementorganizational structure. The Audit Committee under theBoard meticulously monitors and reviews operational riskmanagement performance, maintaining overall risk controlat an acceptable level. The internal audit body (AuditDepartment) organizes and implements daily audit work. Theauthenticity and completeness of financial information andthe establishment and implementation of internal controlsystems are scrutinized and supervised by this department.Furthermore, the Company refined its ESG managementsystem in 2024 by instituting an ESG Leadership Group.This group is responsible for identifying and managing ESGrisks and opportunities, effectively addressing ESG risks thatsignificantly impact the Company's business.
Enhancing Organizational StructureFortifying Risk Management
Risk Identi?cation and ControlCultivating Risk Culture
The Company has established appropriate risk acceptancethresholds and designed corresponding internal controlprocedures. It regularly reviews and updates risk managementpolicies and related internal control systems to adaptto evolving market conditions and operational changes.Periodic or random checks are conducted to ensure theimplementation of internal control systems aligns with riskmanagement policies. A comprehensive series ofInternalControl Manualscovering eight key areas has been developed,and theInternal Control Checklistis constantly refined. ESGrisk management (human resources, information security, R&Dmanagement, quality management, business ethics, etc.) hasbeen integrated into the holistic risk management framework.
For key risk areas intrinsically linked to enterprise operations, the Companyregularly reviews risk points in corresponding business modules. Controlmeasures and monitoring mechanisms are delineated, and closed-loopmanagement is established to ensure risks are effectively managedand controlled. Regular risk assessments are conducted, and targetedimprovement measures are developed based on assessment outcomesto further enhance the Company's risk prevention and control capabilities.In 2024, the Company implemented multiple risk management projects.Unnecessary expenditures and inventory accumulation were avoidedthrough rigorous risk control procedures, thereby further reducingoperational costs and risks. A total of 106 risk points were identified andaddressed across 4 key areas.
The Company has fostered a positive, responsible,and integrity-based risk management culture.In 2024, Estun enhanced employees' riskidentification abilities and awareness throughthe dissemination of theRisk ManagementManualand regular legal training sessions. Theseinitiatives promoted active employee participationin enterprise risk management and ensured theeffective implementation of risk prevention andcontrol measures.
To bolster the Company's internal control and compliance management, Estun has formulated and rigorously implementstheEstun Special Business Internal Management System, Internal Control System,and Internal Audit System. Focusingon the triad of "audit + internal control + compliance," the Company concentrates on generating value throughcomprehensive business and process audits related to supply, production, sales, human resources, finance, andmaterials, consistently refining its internal control and compliance management framework. During the reporting period,the Company exhibited no significant deficiencies in internal control related to financial or non-financial reporting.The Company drafted and issued 5 internal control-related policies in 2024, establishing internalcontrol checklists for system management methods, R&D projects, procurement management,asset management, and consignment management, thereby constantly standardizing internalcontrol management processes. TheEmployee Handbookunderwent a thorough update,clarifying the internal management mechanism for conflicts of interest. TheEmployee Conflictof Interest Declarationwas disseminated to all employees via the Company's WeChat account. Acomprehensive review and update of sales, channel, procurement, and administrative contractswas completed, resulting in 16 new or updated contract templates, further streamlining businessprocess operations.The Company expanded its audit scope in 2024, culminating in 12 completed audit projects,identifying 57 issues, successfully tracking and resolving 45 of them, and recovering lossestotaling RMB 670,900. Prompt corrective actions were implemented for issues identified duringaudits, fostering a positive cycle of improvement-driven management and ensuring compliantbusiness operations across all company sectors.The Company conducted four legal training sessions in 2024, producing 12 legal educationarticles with a cumulative readership of 3,019. The Estun Academy Online introduced a mandatorycourse for new employees titledStrictly Prevent Conflicts of Interest, Prohibit Crossing RedLines, engaging 133 attendances in 2024, thereby comprehensively elevating legal complianceawareness among all employees.
Estun rigorously adheres to domestic laws and regulations, including theLaw of the People's Republic of China onthe Administration of Tax Collectionand the Enterprise Income Tax Law of the People's Republic of China, as well asinternational tax regulations, diligently fulfilling its corporate tax obligations. During the reporting period, the Companywas free from any significant tax violations or involvement in major tax-related litigation or arbitration.
The Company has established a comprehensive tax management system, with the FinancialManagement Center assuming full responsibility for corporate tax management. This includesstandardizing tax practices and updating tax operation norms in accordance with evolvingdomestic and international tax policies to ensure timely and complete tax payments.
The Company conducts regular tax self-inspections, with 1-2 companies within the consolidatedgroup selected annually for comprehensive checks and risk assessments across all taxcategories. This allows for prompt identification and correction of issues, enhancing theCompany's tax risk response capabilities. Estun actively cooperates with tax authority inspectionsand engages third-party audit firms to conduct specialized audits of its tax management,ensuring a more objective and fair evaluation of the Company's tax management practices.
The Company constantly strengthens its tax management compliance capabilities throughtargeted initiatives. These include organizing tax-specific topics for learning, sharing, anddiscussion, and inviting external experts to conduct tax knowledge training sessions. In 2024,a dedicated tax learning group was formed, comprising general ledger and tax managementpersonnel from the Company and its subsidiaries. This group conducted 4 comprehensive taxknowledge training sessions to enhance the relevant personnel's awareness of tax compliance.
Internal Control and Compliance Management
Tax Management
Legal risk controltraining sessionsconducted
Total tax contributionRMB
million
Total attendancein legal risk controltraining
Total traininghours of legal riskcontrol training
7.5
Promoting High-Quality DevelopmentPromoting High-Quality Development
Improving Tax Management
Tax Risk Management
Raising Compliance Awareness
Enhancing Internal Control Management
Strengthening Internal Audits
Reinforcing Employee Training
Governance Chapter
2024 Environmental, Social, and Governance (ESG) Report4950
The Company persistently evolves its business ethics and anti-corruption management framework. The Board ofDirectors serves as the highest decision-making body for business ethics and anti-corruption management. TheAudit Committee, established under the Board, coordinates and oversees the Company's audit and monitoringactivities, ensuring compliance and transparency in decision-making and execution. Under the Audit Committee'sguidance, the Audit Department conducts comprehensive audits and inspections, reinforcing the Company'sbusiness ethics monitoring.
Estun rigorously adheres to the Anti-Monopoly Law of the People's Republic of China, theAnti-Unfair CompetitionLaw of the People's Republic of China, theSeveral Provisions on Prohibiting Infringements upon Trade Secrets, andrelevant anti-monopoly and fair competition regulations in all its operational jurisdictions. The Company is committedto conducting all business activities on the foundation of fair and free competition principles. It pledges to refrain frommaking false or misleading statements about competitors, abstain from malicious defamation, avoid illegally acquiringcompetitors' trade secrets or confidential information, and eschew engaging in illegal activities such as price collusionthat could disrupt market order. The Company collaborates with industry peers to maintain a fair competitive marketenvironment.Within thePartner Code of Conduct, Estun establishes clear anti-unfair competition agreements with its partners,mandating strict compliance from suppliers. Partners commit to abstaining from providing false information oremploying methods that contravene good faith principles in business cooperation. This collaborative approach aims touphold proper business competition standards. During the reporting period, the Company received no reports or legalactions concerning unfair competition practices.
Upholding Business EthicsEstun steadfastly adheres to the principle of honest business practices, rigorously abides by established businessconduct codes, and maintains an unwavering "zero tolerance" stance towards corruption and other unethical businessbehaviors. The Company participates in market competition in strict compliance with laws and regulations, workingcollaboratively with partners to construct a robust defense line for business ethics.
Business Ethics and Anti-Corruption
Anti-Unfair Competition
Specialized audits onbusiness ethics andanti-corruption
Anti-corruption trainingsessions conducted
Total attendance inanticorruption training
The Company implements diverse promotional and educational initiatives on business ethics and anti-corruption. Through internal resources such as the Estun Academy and targeted anti-fraud training, the Companydisseminates crucial knowledge on business ethics and anti-corruption to all employees. In 2024, offline training onprofessional ethics red lines was conducted for newly recruited employees, elevating their ethical standards.The Company disseminates business ethics and anti-corruption policies and regulations through internalwebsites and corporate WeChat channels, ensuring employees remain informed about the organization's ethicalrequirements and fostering an atmosphere of collective responsibility.
Whistleblowing Hotline (Landline): (025) 52785932Whistleblowing Email: sjjb@estun.comWhistleblowing Mailing Address: Estun Audit Department, No. 1888 Jiyin Avenue, Jiangning District, NanjingScheduled in-person WhistleblowingWhistleblowingChannels
Signing rate oftheSupplierCommitmentLetter
%
Promoting High-Quality Development
Supply ChainIntegrityManagement
Whistleblowingand WhistleblowerProtection
Upholding the Defense Line of Business Ethics
The Company reinforces business ethics and compliance management for suppliers through acomprehensiveSupplier Commitment Letter,which explicitly outlines integrity and ethical requirements.Suppliers must commit to strictly adhering to relevant national and local laws, regulations, and industrystandards concerning fair trade, transparency, integrity, and compliance. They must categoricallyreject any form of commercial bribery, refuse to engage in solicitation of bribes in business dealings,and promptly report any improper behavior through the Company's official reporting channels. Estunmaintains a zero-tolerance stance towards fraudulent practices, breaches of integrity, bid rigging,malicious bid withdrawals, or contract violations. Upon verification of non-compliance, the Companyterminates cooperation with offending suppliers and blacklists them. Additionally, Estun emphasizesintegrity promotion across its supplier network, disseminating communications through internal systemsand emails during major holidays to advocate for transparent cooperation and foster a fair, transparent,and ethical business environment.
The Company has implemented theEstun Whistleblowing Management System, which delineates thewhistleblowing process, whistleblower protection measures, and management protocols. This systemstandardizes whistleblowing procedures and ensures fair, effective, and timely handling of potentialcorruption reports. The Company has established multiple reporting channels, including a dedicatedhotline and email address, encouraging employees, customers, suppliers, and other stakeholders toreport behaviors that may contravene business ethics, laws, regulations, or other relevant policies. Estunguarantees strict confidentiality for all whistleblower information, with specialized investigators from theAudit Department handling and investigating reported incidents to ensure impartial outcomes. Any formof retaliation against whistleblowers or related personnel is strictly prohibited.Estun rigorously adheres to theCivil Code of the People's Republic of China, theInterim Provisions on Prohibition ofCommercial Bribery,and relevant laws and regulations in its operating jurisdictions. The Company constantly refinesits business ethics and anti-corruption management system while fostering a culture of integrity through internalcommunications and ethics training. During the reporting period, the Company recorded no incidents of corruption,bribery, conflicts of interest, fraud, money laundering, or unfair competition.
Governance Chapter
Enhancing the Management System
Cultivating a Culture of Integrity
2024 Environmental, Social, and Governance (ESG) Report5152
Promoting High-Quality DevelopmentPromoting High-Quality Development
Governance Chapter
Estun meticulously complies with theTrademark Law of the People's Republic of China, thePatent Law of the People'sRepublic of China, and theCopyright Law of the People's Republic of China, along with other pertinent laws andregulations. The Company has instituted and refined internal policies, including theIntellectual Property ManagementMeasures and Measures for Managing the Termination of Patent Maintenance, to standardize intellectual propertymanagement and enhance the identification and control of infringement risks. While vigorously protecting its proprietaryintellectual property, Estun ensures it does not infringe upon the trademarks, patents, copyrights, or other intellectualproperty rights of external enterprises, institutions and individuals.
Intellectual Property Protection
Estun rigorously adheres to theCivil Code of the People's Republic of China, theAdvertising Law of the People's Republicof China, theTrademark Law of the People's Republic of China, and other pertinent laws and regulations. The Companyupholds a responsible marketing ethos, implementing a stringent review and supervision mechanism for marketingmaterials. This approach governs the Company's product labeling, marketing strategies, and customer engagementprocesses, ensuring the dissemination of comprehensive and accurate product and service information. Sales personnelundergo extensive responsible marketing training to effectively safeguard customers' legal rights and interests.
Responsible Marketing
Total attendancein responsiblemarketing training
Coverage rate ofresponsible marketingtraining for sales personnel
%
Total hours ofresponsible marketingtraining13,437
Average training hoursper sales personnel onresponsible marketing
The Company has implemented a robustcompliance framework, delineatingmarketing compliance responsibilitiesthroughout the entire marketing lifecycle.This enhances oversight and managementof marketing activities, strictlyprohibiting exaggerated or falseadvertising. Any non-compliantmarketing behaviors are swiftlyaddressed and publiclydisclosed as a deterrent.
The "Iron Triangle" leadership and salessupervisors conduct a hierarchicalreview and validation of marketingmaterials and promotional content priorto external release. This process ensuresthat all marketing collateral accuratelyand meticulously reflects the featuresand value propositions of the Company'sproducts and services, mitigating the riskof false advertising.
The Company provides regulartraining to marketing personnel,underscoring the importanceof compliance. These sessionsenhance understanding of relevantlaws and regulations, fostering aculture of compliance to ensureall marketing activities meet legalrequirements.
The Company has articulatedexplicit ethical standards forcommunication with customersand the public. It also mandatesadherence to industry norms in allmarketing activities to preventinappropriate promotion.
Establishing MarketingCompliance Mechanisms
Rigorously ReviewingMarketing Content
Conducting MarketingCompliance Training
Formulating Clear Ethical
Guidelines
Intellectual property training
Records Management. The Company assigns dedicated
personnel to oversee intellectual property records, regularlyorganizing relevant documents, contracts, and materials. Atiered management approach is implemented, consideringthe value creation potential, strategic importance, andmaintenance costs of each intellectual property asset.Application and Confirmation. The Company hasintensified investment in patent applications and copyrightregistrations, particularly in core technology and branddomains, while bolstering the maintenance and monitoringof existing intellectual property to preempt infringement.Core Secrets + Patent Protection. The Company adopts adual-protection strategy to safeguard R&D outcomes andproduct designs as appropriate.Intellectual Property Training. The Company conductsquarterly specialized training sessions, featuring guidancefrom external experts. These comprehensive sessions coverintellectual property strategy, case analysis, and professionalskill enhancement, aimed at elevating IP protectionawareness among R&D personnel.Incentive System. The Company has established theIntellectual Property Reward Management Measurestoincentivize inventors and designers based on the scopeand economic impact of their innovations, encouragingemployees to protect Estun's new technologies, processesand inventions through patent applications.
Industry Peer Intellectual Property Monitoring. TheCompany conducts timely analysis of the competitiveIP landscape and industry patent technologydevelopments. It closely monitors industry IP casesand high-risk areas to avoid inadvertent infringement,mitigating potential patent risks in R&D projects.Compliance Risk Review and Early Warning. TheCompany comprehensively assesses legal risks relatedto patents, trademarks, copyrights, and trade secretsacross its business activities. This process involvesevaluating the likelihood, impact, and consequencesof potential infringements to determine risk levels.Timely warnings are issued for risks deemed typical,widespread, or potentially severe, with strategiesimplemented for avoidance, mitigation, transfer, orinvalidation.Compliance Risk Response and Rectification. Foridentified compliance risks, the Company formulatestailored intellectual property risk response plans,ensuring active implementation of rectificationmeasures across all departments.
Protection of ProprietaryIntellectual Property
Prevention and Control of IntellectualProperty Infringement Risks
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Promoting High-Quality DevelopmentPromoting High-Quality Development
Governance Chapter
Information Security and Privacy ProtectionEstun prioritizes information security and privacy protection, rigorously adhering to theCybersecurity Law of thePeople's Republic of China, theData Security Law of the People's Republic of China, thePersonal Information ProtectionLaw of the People's Republic of China, and other relevant laws and regulations. The Company has establishedand refined a comprehensive information and data security system, implementing a suite of internal managementpolicies including theInformation Security and Confidentiality System, Data Center Management System,InformationSecurity Management Measures for R&D and Technology, Estun Data Security Solutions, andInformation SecurityRisk Assessment Management Measures. These measures collectively safeguard the Company's information anddata integrity. During the reporting period, no information protection breaches, data security incidents, or customerinformation leakage events occurred.
Participate in formulating information security strategies, ensuring alignment with the Company's overarching business objectives.Oversee the implementation of information security initiatives, ensuring rigorous execution of all policies and systems.
Board of Directors
Develop and implement comprehensive information security strategies, standards, and processes. Orchestrate informationsecurity training, coordinate incident response, and swiftly respond to and address emerging security threats. Conduct regular riskassessments to identify potential vulnerabilities and risks, proposing targeted improvement measures.
Information Security ManagementDepartment (Digitalization Department)
Oversee information security management within their respective domains, ensuring thorough implementation of security policiesand systems. Collaborate with the Information Security Management Department in conducting audits and assessments, promptlyaddressing identified issues.
Relevant Department Heads
Estun's Information Security Governance StructureEstun has implemented a robust organizational structure for information security and privacy protection, spearheadedby the Board of Directors. The Company aligns information security-related performance with the compensation ofmanagement and relevant personnel, ensuring the effectiveness and continuous improvement of information securityinitiatives.
Information Security Governance Structure
At the management level, Estun enhances its information security management through regular riskidentification and assessment, security audits, reinforced emergency management protocols, andthe implementation of comprehensive security training and awareness programs for both employeesand suppliers.
At the technical level, Estun implements cutting-edge information security protection technologies. By bolstering data control andnetwork security protection, a comprehensive, multi-layered information security defense network has been established, ensuring thethorough safeguarding of information and data integrity.
Information Security Management
Information Technology Protection
Employ advanced encryption technologies, including AES-256 and GM256 encryption algorithms, to secure sensitive data, guaranteeingdata protection during storage, transmission, and utilization processes.Deploy professional data security protection tools with comprehensive monitoring, management, and encryption capabilities, such as thePing32 Data Loss Prevention system and NETSOS, to mitigate data leakage risks.
Encryption Software Implementation
Define information data, segregate duties, classify, and manage hierarchically. Develop bespoke data protection strategies for data ofvarying sensitivity levels.
Regulate employee data access strictly, adhering to the "principle of least privilege." Ensure employees can only access datapertinent to their work responsibilities, maintaining a hierarchical and categorized management system for personnel accounts andpermissions.Utilize DLP (Data Leakage Prevention) technology to monitor the use and transmission of sensitive data in real-time, swiftlyidentifying and preventing potential leakage risks.Institute a robust data backup protocol, clearly delineating the data backup mechanism. Implement hot standby systems to facilitaterapid data recovery in the event of loss or damage, safeguarding against accidental deletion or modification of data.
Enhanced Data Control
Network Security Protection
Develop theInformation Security Risk Assessment Management Measures,establishing robust risk assessment processes and mechanisms to identifyand evaluate security risks in information systems, ensuring risks arecontrolled to an acceptable level.
InformationSecurity RiskAssessment
Information securitytraining sessionsconducted
Impact, Risk, and Opportunity ManagementIndicators and Targets
Ensure all sensitive data (e.g., customer information andfinancial data) is subject to proper encryption and protectionmeasures to prevent data breaches or unauthorized access,effectively safeguarding customer privacy and employeepersonal data.Establish comprehensive risk assessment processes andmechanisms, conducting regular information securityrisk identification and analysis, and formulating targetedcontrol measures.Develop theData Security Incident Emergency Plan
andData Center Emergency Plan, regularly conductinginformation security emergency drills to ensure therobustness of information security risk managementprotocols.
GovernanceStrategy and Management Approach
Constantly enhance the information security managementsystem, fortifying data control and network security protectionmeasures. Conduct regular information security audits,bolster employee information security awareness, andsystematically elevate information security managementstandards.Institute a top-down information security governancestructure with clearly delineated responsibilities. Engagethe Board of Directors in formulating informationsecurity strategies and the Digitalization Departmentin orchestrating the Company's information securitymanagement initiatives. Ensure relevant departmentsimplement specific information security protocols withintheir respective domains.
Maintain effective isolation of internal and external network data to thwart malicious attacks and virus propagation, fortifying the security ofthe Company's internal network.Deploy advanced security measures, including firewalls, IDS (Intrusion Detection Systems), and VPN (Virtual Private Networks), to preventunauthorized access and data theft.Establish a reasonable anti-virus mechanism. Update server-side virus databases regularly, and conduct network vulnerability detection andremediation periodically to minimize network security risks.
Conduct regular information security audits, scrutinizing access andtransmission records of all sensitive data to ensure data compliance andsecurity.InformationSecurityAudits
Formulate theData Security Incident Emergency PlanandData CenterEmergency Plan, clearly outlining the emergency management process fordata and information breaches.Organize bi-annual information security recovery tests to validate thefeasibility and effectiveness of emergency plans, enhancing the Company'semergency response and handling capabilities.InformationSecurityEmergencyManagement
Mandate suppliers and company employees to sign confidentialityagreements as specified, reinforcing the prevention of information leakage.Conduct regular, specialized information security training sessions,encompassing crucial aspects such as secure password practices, phishingprotection strategies, and email security management, to elevate employeeawareness of information security and data protection principles.Enhancementof InformationSecurityAwareness
Total hours ofinformation securitytraining
Total attendance ininformation securitytraining
%
Coverage rate ofinformation securitytraining for IT personnel
Information leakincidents
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Environmental Chapter
Building a Sustainable
Contributing to UN SDGs
Future Together
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Environmental Chapter
Environmental ManagementEstun rigorously adheres to national environmental protection laws and regulations, including theEnvironmentalProtection Law of the People's Republic of China. The Company has established and consistently refines its greenenvironmental protection system, enhancing its environmental management framework. It implements enduringmechanisms for environmental protection, focusing intensively on addressing climate change, promoting efficientresource utilization, and conducting effective pollution prevention and control. Through these concrete actions, theCompany demonstrates its unwavering commitment to safeguarding the natural environment.
Strengthening Management Foundation
Environmental TargetIndicatorAchievement StatusZero EnvironmentalPollution Incidents
Compliance rate for exhaust gas emissions: 100%
All achievedCompliance rate for wastewater discharge: 100%Compliance rate for boundary noise emissions: 100%Compliance rate for hazardous waste disposal as required: 100%
The Company has established a Production Safety Management Committee, chaired by the General Manager. An EHSManagement Department operates under this committee, overseeing the approval of environmental protection systems andmanaging environmental initiatives. The Company has formulated and implemented comprehensive environmental managementsystems, including theEnvironmental Management System,Energy Management System, andEnergy Management Manual. Ithas updated theEnvironmental Factor Identification and Evaluation Control Procedure, revised environmental factor evaluationcriteria, clarified the timing of environmental factor identification, and strengthened the identification, management, and controlof significant environmental factors, thereby enhancing the effectiveness and execution of the environmental managementsystem.The Company has successfully obtained ISO 14001 Environmental Management Systemcertification. This certification encompasses the design, development, and productionof AC servo drive systems, permanent magnet AC servo motors, and electro-hydraulicservo systems; the design, development, and production of industrial robot bodiesand electrical control cabinets for mechanical equipment; the machining of industrialrobot components; and the design, development, production, and related managementactivities of intelligent manufacturing systems for industrial applications, includingindustrial robot integration.Based on operational realities, the Company scientifically establishes environmental goals. Through the cascading of targetindicators, it signs environmental protection responsibility agreements with various departments at all levels, incorporating theminto departmental performance evaluations to enforce supervision and management responsibilities. Environmental protectionagreements are signed with management, allocating a portion of compensation as an environmental protection incentive fund,distributed based on the achievement of performance goals. Multiple strategies are employed to drive the realization of theseobjectives.
Estun's EnvironmentalManagement System Certificate
Enhancing the Management System
The Company carries out annual identification, review, and update of environmentalfactors. Estun Automation Co., Ltd. identified 127 environmental factors, with 9 deemedsignificant; Estun Robotics Co., Ltd. identified 144 environmental factors, with 5 consideredsignificant. For these identified significant environmental factors, comprehensivemanagement plans, emergency response protocols, and control measures are formulated.The Company implements thorough hidden danger investigations and supervises theimplementation of corrective measures to effectively mitigate environmental risks.
MitigatingEnvironmental Risks
The Company facilitates the participation of personnel involved in standardizedmanagement of hazardous waste in specialized training organized by the Nanjing MunicipalBureau of Ecology and Environment. All 18 participating employees successfully passedthe rigorous examination and assessment, significantly improving their technical skill levelsand environmental awareness.Enhancing EnvironmentalAwareness
Incidents of environmentalprotection law violations
Environmental protectioninvestmentRMB
1.72
million
Addressing Climate ChangeIn the face of the complex and formidable challenge of global climate change, every action is critical. Estun fully acknowledgesthe importance and urgency of addressing climate change. Adhering to the requirements of theShenzhen Stock Exchange Self-Regulatory Guidelines No. 3 – Preparation of Sustainability Reports, and drawing upon the International Sustainability StandardsBoard'sIFRS S2 Climate-related Disclosures, the Company has instituted a robust climate change governance mechanism. Itconducts comprehensive climate risk and opportunity assessments and identification, formulates scientific and effective responsestrategies, bolsters its own operational resilience as well as that of its upstream and downstream industry partners, and collaborateswith various stakeholders to pursue a green, low-carbon future.Estun has established a climate change governance structure led by the Board of Directors and the Environmental, Social, andGovernance (ESG) Committee, with management at its core, and various departments, branches, and subsidiaries serving as primaryexecuting units.
Governance
Board of Directors, Environmental, Social, and Governance (ESG) CommitteeThese two bodies formulate the Company's climate change-related strategic planning, overseeclimate change risk and opportunity-related matters, review climate change-related targets, evaluatemanagement's reports on climate change issues, and provide strategic recommendations.
ESG Leadership GroupThe group coordinates the formulation of major policies and strategic plans, identifies climate change-related risks and opportunities, and integrates these into operational considerations. It manages climatechange-related targets and drives the systematic implementation of climate change response and low-carbon development initiatives.
ESG Working GroupThe group is tasked with implementing, adapting, and advancing various climate-related initiatives. Itmanages climate risk-related indicators and regularly reports to the ESG Leadership Group on workeffectiveness and target achievement status.
The Oversight Bodies
The Management Body
The Executive Body
Implementing System Certification
Implementing Environmental Objectives
Conducted
environmental protection-related training sessions,with a total of
attendances.
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Environmental Chapter
Informed by climate-related risk and opportunity assessments, Estun implements comprehensive mitigation and adaptationstrategies, integrating climate-related risks into its long-term strategic planning. The Company accelerates the implementationof "dual carbon" goals across energy efficiency improvement, renewable energy adoption, and low-carbon product and solutiondevelopment. It maintains a sharp focus on low-carbon technology and product R&D, positioning businesses that support newenergy industries, industrial automation, and energy efficiency enhancement as key strategic priorities. The Company also closelymonitors emerging fields and demands arising from the transition to a low-carbon economy, aiming to meet evolving market needsand capitalize on clean technology opportunities. In 2024, we made significant strides in energy management, product upgrades,and customer empowerment. Detailed information can be found in the "Driving the Low-Carbon Transition of Society" and "EnergyManagement" chapter modules.
Strategy and Management Approach
Estun proactively addresses climate change-related risks and impacts by establishing a robust climate change risk managementframework. Through a combination of internal research, industry analysis, and external consultation, the Company identifies, analyzes,evaluates, and manages significant climate change risks and opportunities. Based on risk identification outcomes, tailored mitigationmeasures are developed and integrated into the company-wide, multi-departmental risk management process. In 2024, theCompany conducted a comprehensive analysis and evaluation of climate change risks (encompassing both physical and transitionrisks) and opportunities relevant to its operations, demonstrating its commitment to actively addressing climate change challenges.
Impact, Risk, and Opportunity Management
Customers
Company
IndustryChain
TargetStrategy
Implement rigorous monitoring and analysis of carbon emissions across different processes and facilities,cascading reduction targets to various business units. Deploy photovoltaic systems in industrial parks,leveraging green electricity for production to minimize operational carbon footprint.Develop innovative energy-efficient products aligned with customer needs, creating intelligent,automated, and environmentally-friendly comprehensive solutions for diverse carbon emission reductionscenarios, enabling customers to consistently enhance their carbon emission reduction capabilities.Strategically engage in new energy sub-sectors including photovoltaics, lithium batteries, new energyvehicles, hydrogen energy storage, and flow batteries. Identify industry requirements and pain points,collaborating with partners to achieve technological breakthroughs that promote carbon emissionreduction and resource optimization across the new energy industry value chain.
Acute Risks
Rising average temperatures will significantlyincrease electricity consumption for airconditioning systems in Estun's offices andmanufacturing facilities, leading to higherelectricity costs and increased carbonemissions.Extreme weather events such as heatwaves,severe precipitation, river flooding, and coastalflooding may pose risks to production stability,safety of plant equipment and assets, andemployee commuting safety.
Persistent high temperatures and potential droughtscaused by climate change, resulting in reducedrainfall, will pose significant challenges, includingwater scarcity, power shortages, rising electricityprices, and operational disruptions.Rising sea levels will impact the normal operationsof coastal headquarters and subsidiaries, potentiallyincurring substantial relocation costs.
The Shenzhen Stock Exchange and EU regions willprogressively strengthen climate-related disclosurerequirements for sustainability reporting, imposingnew demands on the Company's climate changemanagement and information disclosure practices.As carbon trading markets mature at various levelsand carbon assets become more prevalent, carbonpricing will emerge as a crucial tool for governmententities to regulate corporate carbon emissions,necessitating shared energy transition costsbetween the Company and governmental bodies.As a tier-one supplier to numerous renownedenterprises, Estun faces stringent requirementsrelated to low-carbon initiatives from an increasingnumber of customers. Failure to meet these evolvingstandards could result in significant loss of businessopportunities.Insufficient investment in energy-saving and carbonemission reduction technologies relative to industrypeers may result in falling behind market demands.New technology R&D investments carry inherentrisks of failure.
Increasingly stringent environmental performancedisclosure requirements elevate compliance costsassociated with maintaining or enhancing corporatereputation.Failure to meet publicly announced carbonemission reduction commitments may result inaccusations of greenwashing from investors and thepublic, potentially damaging brand reputation andcorporate image.
Incorporate regional climate risk assessmentsinto project selection and planning processes.Progressively increase the utilization ofrenewable energy sources, particularly solarpower, in production and operational activities.
Vigilantly monitor evolving international anddomestic environmental and carbon-relatedlaws, regulations, and policies. Proactivelyassess policy adaptability and enhance internalmanagement and compliance disclosureprocesses.Bolster energy and carbon emissionmanagement through energy-saving technicalimprovements, optimizing energy structure,and promoting carbon emission reductiontechnology applications to minimize operationalcarbon footprint.Intensify communication with customersto comprehend their ESG requirements forsuppliers and product specifications. Integratesustainability criteria into product R&Dprocesses, emphasizing green, energy-efficient,and low-carbon product attributes.Conduct rigorous feasibility studies on low-carbon technology R&D and application tomitigate trial-and-error costs.Maintain robust R&D investment, activelypursue industry collaborations, and partnerwith value chain stakeholders to jointly advancelow-carbon technology R&D and application,narrowing the technology gap with industrypeers.Promptly disclose comprehensive measurestaken by the Company to address climatechange, including strategic planning, objectives,actions, and performance metrics.Implement rigorous review processes forcompany disclosures to eliminate inaccuraciesand ensure alignment between disclosedinformation and actual performance, fostering amore credible and responsible corporate imagebased on verifiable implementation of climateinitiatives.
Enhance precision management ofenergy consumption statistics andmonitoring. Proactively adopt advancedproduction technologies and equipmentwhile phasing out outdated, energy-intensive equipment. Aggressivelypromote energy-efficient technologies.Develop and regularly updatecomprehensive emergency responseplans for extreme weather and naturaldisasters. Conduct periodic drills toconstantly refine emergency responsemechanisms.
Operatingcosts ↑Operatingrevenue ↓Assetvalue ↓
Transition Risks
Chronic Risks
Policy andLegal Risks
Market Risks
TechnologyRisks
ReputationalRisks
Physical RisksRisk/Opportunity
Type
Risk/OpportunityDescription
Potential FinancialImpact
ResponseStrategy
Operatingcosts ↑Assetvalue ↓
Operatingcosts ↑Assetvalue ↓
Operatingrevenue ↓
Operatingcosts ↑Operatingrevenue ↓
Operatingcosts ↑Operatingrevenue ↓
Physical RisksRisk/Opportunity
Type
Risk/Opportunity
Description
Potential Financial
Impact
ResponseStrategy
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IndicatorUnit202220232024Direct greenhouse gas emissions (Scope 1)tons of CO
equivalent875.33842.00882.05Indirect greenhouse gas emissions (Scope 2)tons of CO
equivalent7,712.438,721.858,994.82Total greenhouse gas emissionstons of CO
equivalent8,587.769,563.859,876.87Greenhouse gas emission intensity
tons of CO
equivalent/RMB 1million revenue
2.212.062.46
Resource ManagementEstun actively aligns with national initiatives for building a resource-economical and environment-friendly society. The Companyrigorously adheres to the requirements of laws and regulations, including theEnergy Conservation Law of the People's Republicof China. It integrates green and low-carbon operational concepts throughout all production processes and stages, systematicallypromoting energy conservation and consumption reduction to minimize the Company's dependence on natural resources andmitigate its environmental impact.
Estun adheres to an energy policy centered on "energy conservation, consumption reduction, clean production, continuousimprovement, and green development." The Company has implemented anEnergy Management SystemandEnergyManagement Manual, recently supplemented by anEnergy Management Implementation Plan. These initiatives focus onoptimizing energy usage, enhancing equipment efficiency, upgrading technological processes, and promoting clean energy adoption,all aimed at improving energy efficiency and management standards in support of the "dual carbon" goals.
Energy Management
The Company has developed a comprehensive energy management system and obtainedISO 50001 Energy Management System certification. This certification encompasses energymanagement activities related to the design, development, and production of AC servo drivesystems, permanent magnet AC servo motors, and electro-hydraulic servo systems. It also coversthe machining of industrial robot components, industrial robot bodies, and the production ofelectrical control cabinets for mechanical equipment.Smart meters are deployed to monitor and analyze electricity consumption across variousproduction stages. Additionally, the Company has implemented an intelligent energy monitoringand management platform, employing advanced information technology for centralized energyusage management. This approach enhances energy medium balance allocation and optimizesscheduling, thereby improving overall energy management and reducing consumption.
Estun's Energy ManagementSystem Certificate
Estun has established an ambitious goal to achieve operational carbon neutrality by 2050. This target serves as the foundation forscientifically planning its carbon emission reduction roadmap, with continuous monitoring of progress towards this objective.Indicators and Targets
Carbon Emission Reduction Targets
Improving Energy Management
Achieve operational carbonpeak by2028
Attain operational carbonneutrality by2050
Strengthening Energy Conservation Control
A strategic phase-out and replacement plan has been formulated, prohibiting the use ofobsolete electromechanical products in favor of energy-efficient alternatives. During thereporting period, 15 outdated Y2-type motors were replaced with energy-efficient models.Selecting High-EfficiencyEquipment
A comprehensive analysis and modification of all components have been conducted todetermine optimal production methods. Production management has been streamlinedwith strict adherence to processing sequences. During the reporting period, the SD electricdrive production line established a specialized process team, optimizing the management ofidentical components and effectively reducing production energy consumption by over 15%.
OptimizingProductionManagement
Production capacity and efficiency have been increased by leveraging the Company's patentedtechnologies and processes, driving energy conservation and consumption reduction.PromotingEnergy-SavingTechnologies
Energy-efficient lighting fixtures and smart lighting systems have been utilized in productionplants, saving approximately 120 kWh per month. Air conditioning energy management isenhanced through the use of energy management cards for each unit, with temperaturesettings maintained at 26°C in summer and 22°C in winter, projected to save 1,500 kWh duringthe summer season.ImplementingGreen OfficePractices
Climate OpportunitiesRisk/OpportunityType
Risk/Opportunity
Description
Potential Financial
Impact
ResponseStrategy
In the context of low-carbon economic transition,societal demand for green, low-carbon products andservices is likely to increase. Further developmentand provision of low-carbon products, services, andsolutions could enable the Company to better adaptto evolving market demands and achieve additionalgrowth.Implement energy-efficient technologies andequipment to reduce energy consumption inproduction processes, lowering operational costswhile improving production efficiency and supplycapacity.Enhance resource recycling and utilization tominimize waste and decrease production costs.As green technology R&D and innovation progress,and supportive policies are introduced, theaccessibility of renewable energy is graduallyimproving, with potential price reductions. Utilizingrenewable energy in production and operations cansignificantly reduce direct energy costs.Proactively responding to climate change policiescan facilitate entry into new national markets,enhance the Company's competitiveness globally,and gain recognition from a broader range ofinternational clients and partners.
Capitalize on market opportunities by leveragingthe Company's robust R&D foundationand technological advantages in industrialautomation. Constantly enhance the greenproduct portfolio to provide innovative solutionsfor low-carbon transformation across variousindustries, thereby reducing downstreamcarbon emissions throughout the value chain.Widely implement energy-saving technologiesand equipment in production processes.Establish comprehensive energy consumptionmanagement procedures to optimize energycosts.Develop a robust resource recycling andprocessing system to maximize resourceutilization and minimize waste generation.Expand photovoltaic power generationcapabilities, increase the use of clean energy,and progressively elevate the proportion ofelectricity derived from renewable sources.Actively engage in international certificationprocesses and standard-setting initiativesto bolster the competitiveness of companyproducts in global markets.
Products andServices
ResourceEfficiency
EnergyStructure
Market
Operatingrevenue↑
Operatingrevenue↑Operatingcosts ↓
Operatingcosts ↓
Operatingrevenue↑
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Water Resource ManagementEstun's operations have a relatively low dependence on water resources, primarilyusing water for industrial cooling, washing, and cleaning in R&D and productionprocesses, and domestic purposes. The majority of water used in production andoperations is sourced from municipal supplies, minimizing environmental impactin terms of water source selection. As a responsible corporate citizen, however, theCompany places high importance on water resource management and efficientutilization. It strictly adheres to theWater Law of the People's Republic of China
and related regulations, constantly improving internal water usage policies. Waterconservation and strengthened resource management are prioritized throughout allproduction and operation processes to promote efficient water utilization.
Total water withdrawal136,176tons
Water withdrawal intensity
0.34
tons/RMB 10,000 revenue
Estun adheres to a strategic approach focused on reduction, reusability, recyclability, renewability, and biodegradability. By prioritizingenvironmentally friendly packaging materials, avoiding excessive packaging, and reducing packaging waste, the Company promotessustainable packaging transformation, aiming to achieve both environmental and economic benefits.
Packaging Material ManagementThe Company is actively expanding its renewable electricity sources, with a particular focus on accelerating photovoltaic powergeneration. Rooftop distributed photovoltaic power generation projects have been implemented across three plant areas. In 2024,these projects became fully operational with installed capacities of 299.75kW, 843.7kW, and 507.65kW respectively, generating animpressive total of 3.45 million kWh of self-built photovoltaic power generation annually.IndicatorUnit202220232024
Natural gascubic meters416,610.84392,466.02396,673.24Gasolinetons25.4518.6924.27Dieseltons30.9726.9063.18Purchased electricitymillion kWh12.2416.1717.30Self-built photovoltaic powergeneration
million kWh1.391.483.45Total comprehensive energyconsumption
tons of standard coal equivalent2,141.052,575.802,781.12Comprehensive energyconsumption intensity
tons of standard coal equivalent/RMB 1
million revenue
0.550.550.69
Utilizing Clean Energy
Pollution Prevention and ControlEstun strictly complies with national laws, regulations, policies, and local environmental protection requirements. The Company hasestablished anEnvironmental Protection Management Systemto standardize the management of exhaust gas, wastewater,solid waste, and boundary noise generated during production and operations. Strict controls are maintained over the generation andemission of pollutants. Through source reduction, classified management, and recycling, the Company reduces solid waste discharge.Enhanced treatment and control of exhaust gas and wastewater ensure that all pollutants are 100% compliant with emissionstandards and properly disposed of, striving to minimize the environmental impact of production and operations.
During the reporting period, the Company'sbusiness activitiesdid not cause significantimpact on the environment and naturalresources.
monitoring sessions for wastewater, exhaustgas, and noise were conducted across three plantareas,with all results meeting nationalemission standards.
Estun adheres to and implements the requirements of theLaw of the People's Republic of China on the Prevention and Controlof Atmospheric Pollution, ensuring compliant emission of exhaust gases. Standardized management and operations are applied toexhaust gas treatment equipment and facilities in factories to ensure the normal operation of all treatment facilities.Exhaust gas Management
WaterUsageMonitoring
High-grade rotary wet water meters and flow meters are deployed, which are regularly calibratedand maintained to monitor water usage across various production stages, enhancing the precision ofwater management.
WaterConservationManagement
Regular inspections of production equipment and pipelines are conducted to promptly identifyand repair leaks, preventing water waste. Water conservation signage is strategically placed nearrestrooms and water dispensers to reinforce water-saving behaviors among employees.
RainwaterReuse
The Company's facilities feature rainwater collection pools. Harvested rainwater is utilized forlandscaping and irrigation, reducing water waste and effectively achieving water resource recycling.WaterRecycling
Waste liquid from the machining workshop undergoes treatment at the wastewater treatmentstation. Treated water with chemical oxygen demand (COD) concentrations below 500 mg/L isrepurposed for preparing new cutting fluids and cleaning solutions. This reduces waste liquiddischarge by approximately 50% daily while conserving 1-1.5 tons of fresh water per day.
Excessive packaging is eliminated, minimizingthe use of packaging materials to effectivelyreduce unnecessary resource waste. Forinstance, in the case of robot wooden cratepackaging, the Company has optimized crate sizedesign to minimize wood usage. This not onlymaintains packaging safety and stability but alsofurther reduces crate weight, thereby loweringtransportation energy consumption.
Priority is given to recyclable materials, reducingthe reliance on single-use materials. For inter-plant material transport, such as drives andcastings, the Company promotes the use ofrecyclable transit packaging instead of disposableoptions, thereby increasing the number of timespackaging can be reused.
Packaging ReductionRecyclable Packaging
Energy Usage Performance
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Exhaust Gas Emission Performance
IndicatorUnit202220232024
Total exhaust gas emissions10,000 cubic meters29,463.2026,013.7120,642.28Exhaust gas emission intensity10,000 cubic meters/RMB 1 million revenue7.595.595.15Non-methane hydrocarbonskilograms——347.56378.98Particulate matter (PM)kilograms270405160.36Tinkilograms————135.03Nitrogen oxides (NO
X
)kilograms————3.55
Estun strictly adheres to the requirements of theLaw of the People's Republic of China on Water Pollution Prevention andControl,establishing internal policies and management standards to ensure wastewater is effectively treated before discharge.
Wastewater Management
In surface treatment processes, new environmentally friendlysurface coating technologies replace traditional high-pollutionelectroplating processes, achieving better protection anddecorative effects while avoiding heavy metal wastewaterdischarge. In three-in-one electric control lines, the proportionof aluminum materials in processed parts has been increasedfrom 40% to 90%, effectively reducing pollution emissionsfrom carbon steel electroplating.
In 2024, the Company initiated a wastewater reuse project.Cleaning wastewater from machining processes is treatedat the wastewater treatment station and then reused formachine tool cutting fluid replenishment. After validation,the plan is scheduled for formal implementation in 2025.Once operational, it is expected to reduce factory productionwastewater discharge by approximately 200 tons, striving toachieve zero industrial wastewater discharge.Wastewater Discharge Performance
IndicatorUnit202220232024Total wastewater dischargetons————96,461Chemical oxygen demand (COD)tons6.847.2010.98Ammonia nitrogentons1.240.911.53Suspended solids (SS)tons3.812.859.6Total phosphorustons——0.080.19Total nitrogentons——0.930.58Animal and vegetable oilstons——1.230.01Petroleumtons————0.055-day biochemical oxygen demand (BOD5)tons————3.37Anionic surfactants (LAS)tons————0.04
Noise ManagementEstun thoroughly considers the impact on the environment and surrounding communities during its production processes. Regularmaintenance and servicing of production equipment and facilities are conducted to mitigate and control noise generated byproduction machinery. For general facilities and equipment, daily inspections of operational status are carried out in each workshop.Any abnormal equipment operation is promptly addressed, with severe cases resulting in immediate shutdown for repair. High-noiseequipment such as dust removal fans, air compressors, and fire pump rooms are subject to focused monitoring and control, withtimely implementation of sound insulation and noise reduction measures. Annual noise monitoring at facility boundaries is conductedby certified environmental monitoring units to ensure compliance with regulatory standards.Biodiversity ProtectionEstun strictly adheres to local environmental protection regulations throughout the design, construction, and operational phasesof new project developments and renovations. Comprehensive environmental impact assessments are conducted to achieve aharmonious balance between company business growth and ecological preservation.The Company'sEnvironmental Impact Report Form for Servo Motor Production Line Renovation ProjectandEnvironmentalImpact Report Form for Robot Parts Production Line Renovation Project in the Machining Workshophave received approvalfrom the Nanjing Jiangning Economic and Technological Development Zone Management Committee. These environmentalassessments identify potential ecological impacts of the projects and propose targeted measures to prevent or mitigate adverseenvironmental effects, thereby enhancing project performance in resource utilization, ecological protection, and pollution control.Notably, the servo motor production line renovation project successfully passed the environmental protection acceptance inspectionupon completion in September 2024.
EmissionMonitoringSourceSubstitution
TechnologicalInnovation
For volatile organic compounds (VOCs), online monitoring equipment for coating VOCs has been employed, withweekly maintenance and calibration to ensure accurate emission data.In the motor production impregnation process, solvent-free, environmentally friendly insulating varnish replacesoriginal insulating varnish and solvent-based coatings, eliminating the need for thinners. The product VOCscomply with the limit requirements in theTechnical Requirement for Low-Volatile-Organic-Compound-Content Coatings Products (GB/T 38597-2020). Motor shaft cleaning agents have been replaced with water-based cleaners with undetected VOCs content. The Company is seeking water-based cleaning agents withlower VOCs content to replace original spray water-based cleaners, further reducing pollutant emissions.In the welding process, high-precision, high-speed laser welding technology has been introduced, effectivelyreducing welding material waste and lowering the generation of harmful gases during welding.
Estun rigorously complies with theLaw of the People's Republic of China on the Prevention and Control of EnvironmentalPollution by Solid Wasteand theNational Hazardous Waste Inventory,along with other relevant regulations, to enhancestandardized waste management. The Company effectively utilizes the Jiangsu Provincial Solid Waste Management InformationPlatform for comprehensive reporting, maintaining meticulous records of waste types, generation volumes, and treatment quantitiesto ensure data accuracy and traceability.
Waste Management
IndicatorUnit202220232024
Hazardous waste generationtons85.3897.44136.46Hazardous waste comprehensive utilization rate%2516.25General waste generationtons2,597.282,2171,716.15General waste comprehensive utilization rate%424536
General Industrial Solid WasteHazardous Waste
This category primarily comprises recyclable materialssuch as waste plastics, metal scraps, waste wood,packaging materials, and cable remnants. These areoutsourced to qualified entities for proper utilizationand recycling.
Temporary storage facilities for hazardous waste areconstructed in strict accordance with national hazardouswaste management requirements. Various categories ofhazardous waste are stored and disposed of as stipulatedby regulations. Qualified entities are commissioned toprocess the waste centrally, ensuring compliance with thelegal requirements for hazardous waste treatment in therespective project locations.Solid Waste Discharge Performance
Source ReductionWastewater Reuse
2024 Environmental, Social, and Governance (ESG) Report6768
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Social ChapterAdvancing Together
Contributing to UN SDGs
on a New Journey
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Human Capital DevelopmentEstun considers employees to be its most valuable asset and a core component of its competitive advantage. We are committedto fully safeguarding employee rights and interests, striving to create a workplace environment that is fair, just, safe, healthy, anddiverse for all staff members. We consistently enhance our talent development system, offering a wide range of training support andcompetitive compensation and benefits. Our focus on work-life balance enables employees to enjoy their work and maintain a healthylifestyle, thus helping them realize their personal potential.In line with its business development plans, Estun consistently refines its recruitment system. The Company hasimplemented recruitment management policies, including theRecruitment and Allocation ManagementSystem, thePersonnel Management System, and theProbation Management System, to standardize itstalent acquisition process. Through diverse development programs, we attract outstanding talents, establisha scientific and effective performance management system, standardize the entire employee performancemanagement process, and optimize our compensation and incentive systems. By offering competitive salaries,we aim to ensure the stability and vitality of our talent pool.
Talent Attraction and Retention
The Company has developed a strategic, dynamic talent pool aligned with its development goals and strategic planning. We conductcomprehensive analyses of the requirements for various positions, with particular emphasis on key technical and senior managementroles, to proactively plan talent allocation. Our recruitment needs are forecasted based on market trends, leading to the formulation ofdiversified recruitment strategies, expansion of talent sourcing channels, and optimization of recruitment methods. We actively recruitsuitable talents through various means, including campus recruitment, industry job fairs, and internal referrals, taking into accountthe conditions, culture, and job characteristics of each plant location. Furthermore, we have established fair and objective interviewevaluation standards, employing structured interview methods that assess both current abilities and long-term potential. We conductinterviewer training courses to enhance the professional capabilities of our interviewer team, thereby improving recruitment efficiencyand job matching accuracy. This comprehensive approach provides robust talent support for the Company's ongoing development.We have forged partnerships withnumerous universities, particularlythose excelling in automation, computerscience, mechanical engineering,and related fields. To attract graduateapplications, we organize campuspresentations and corporate OpenDay recruitment events. Duringthese sessions, we provide studentswith detailed information about theCompany's history, corporate culture,business scope, and potential careerpaths, offering a holistic view of Estun.
We encourage employees to recommend outstanding talents from theirnetworks, offering incentives for successful referrals to enhance recruitmentefficiency. Candidates recommended by internal employees often demonstratea strong alignment with the Company's needs.
Note: New employee data is based onoperations in China.
We utilize leading recruitment platforms such as Zhaopin, 51job, and zhipin toadvertise job openings, attracting professionals with relevant work experience.Additionally, we engage with industry forums and professional communities toprecisely target specific talent groups.
Talent Acquisition
Total number ofemployees3,572
New hires during the reporting period
Newly recruited fresh graduates
Campus Recruitment
Internal Referrals
Social Recruitment
Percentage of new employeesby hierarchical levelSeniormanagement
2.14%
Frontlineemployees
95.01%
Middlemanagement
2.85%
Percentage of new employeesby age
Employeesaged 51 and above
Employees aged 30and under
46.32%
0.24%
Employeesaged 31-50
53.44%
Overall employeeturnover rate
20.18
%
Employee turnover rate by genderEmployee turnover rate by age
Maleemployees
21.32%
Femaleemployees
15.15%
Employeesaged 30 and under
26.55%
Employeesaged 31-50
18.11%
Employeesaged 51 and above
8.94%
Estun continues to intensify its focus on talent development. The Company has established the Estun Academy, adhering to theprinciple of empowering employees internally while strengthening the industrial ecosystem externally. We actively refine our trainingsystem, enhance our training models, develop comprehensive training resources, and strive to foster a learning organization. Throughthese efforts, we aim to build a talent team that is well-equipped to adapt to our business development needs.
Employee Development
34 attendees
Conducted
sessions oftraining for
newly hiredemployees through socialrecruitment.Conducted
sessionlasting
days for
freshgraduates.
25 attendees34 attendees, encompassingsenior, middle, and juniormanagement personnel.
Employee Training System
AdvancedStudy Class
Training for NewlyHired Employeesthrough SocialRecruitmentFresh GraduateTraining (Seedling toForest Project)
TransformationProgram forMiddle and JuniorManagementProject ManagementEnablement Program forIntelligent TechnologyManagement Personnel
Training is conducted on topics including Team Performance and Motivation,Digital Transformation, Estun Solution Transformation, Strategic Thinking:
Contemplating Company Strategic Development Direction and Business, andOperational Thinking: Viewing Investment in People, Products, and Marketsfrom an Input-Output Perspective.
Comprehensive training is offered, covering an introduction to Estun(company overview, facility tour), corporate culture immersion, HR, finance,and administrative procedures, product familiarization, robot operation skills,safety protocols, and occupational health knowledge. These modules aredesigned to help new employees quickly adapt to the Company and integrateinto their roles.Holistic training is delivered encompassing company orientation, corporateculture immersion, departmental management systems and processes (HR,finance, administration, office systems), product line and industry applicationknowledge, self-awareness and career development, safety protocols,and occupational health. Additional activities include debate competitions,exhibition presentations, and team-building exercises to support graduates'transition from academia to the professional world.
Training is divided into four phases: team integration, quick win planning,influence enhancement, and operational alignment, assisting managers insuccessfully adapting to their new roles and responsibilities.Courses are designed based on six key competencies of projectmanagement qualifications to enhance managers' project operationcapabilities and build a robust project management talent pool.
Training ProgramsTraining ContentAnnual ProgressLeadership Training
Training ProgramsTraining ContentAnnual Progress
General Competency Training
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Social Chapter
Enhancing Online Training
Expanding External Resources
Internal Trainer Development
The Company offers employees access to a range of external training resources, including T?V Rheinland certification for mechanicaland electrical safety compliance design, FEMA boot camps, lean production training, and intelligent technology project managementcamps. These initiatives provide comprehensive support for employee growth and development.
To foster the consolidation and transmission of knowledge and skills, the Company has established theEstun InstructorManagement Measuresand implemented a comprehensive internal trainer management and incentive system. We independentlydevelop learning resources to cultivate a self-nurturing organization. During the reporting period, we conducted four Estun Lightinternal instructor empowerment sessions and one micro-course to enhance the professional capabilities and sense of pride amonginternal trainers. The Company added 56 new internal trainers, bringing the total number to 93.
Collaboration with external institutions to deliver high-quality training for employees
The Company leverages its digital learning platform, EstunAcademy Online, to encourage employees to utilize micro-learning opportunities. To standardize the platform's operationalframework, we introduced theEstun Academy Online OperationManagement Measuresduring the reporting period, streamliningcourse upload and review processes. We systematically reorganizedthe knowledge base, implementing a scientifically designed coursecatalog and reclassifying all online courses to establish a standardizedcurriculum system. Additionally, we optimized training managementacross departments by adopting a project-based approach, enablingreal-time monitoring of departmental training plan execution andfostering a culture of self-directed learning.
Training projects launched
Attendance in online training39,276
Total online training hours113,080.26
Average Online Training Duration per Employee (hours)Average online training duration peremployee by gender
Average online training duration peremployee by hierarchical level
Average online training duration peremployee by age
Employeesaged 30 andunder
63.2
Employeesaged31-50
85.8
Employeesaged 51and above
1.4
Employee online trainingcoverage rate
94.44
%
Average online traininghours per employee
47.08
Online training coverage rate by genderOnline Training Coverage Rate (%)
Online training coverage rate by hierarchical level
Seniormanagement
100%
Middlemanagement
97.10%
Frontlineemployees
93.95%
Maleemployees
Femaleemployees
95.10%
94.27%
Note: Employee training data is based on operations in China.
individuals successfullypassed the certificationassessment.
Implemented
sessions ofempowerment training.
attendees
attendees
Super EngineerProject
TransformationEmpowermentBusiness EnglishTraining
Iron TriangleEmpowermentProject
Training spans product lines including industrial robots, motion control, sheetmetal automation, and intelligent technology subsidiaries, fostering versatile,multi-skilled talent.
Targeted empowerment training has been delivered for transformationprojects in IPD (Integrated Product Development), finance, and qualitymanagement to deepen employees' understanding of organizational changeinitiatives.Tailored English training programs have been developed for variousemployee groups to enhance their international communication skills.
A distinctive "Iron Triangle" talent development system with Estun-specificcharacteristics has been established, with AR, SR, and FR cultivation projectslaunched accordingly. Innovative teaching methods has been introduced,including instructional videos, exemplary role models and case studies, andspecialized knowledge cards, to enhance the professional capabilities ofcross-functional teams.
Training ProgramsTraining ContentAnnual ProgressProfessional Competency Training
60.95
47.51
Maleemployees
Femaleemployees
24.45
64.13
57.50
Seniormanagement
Middlemanagement
Frontlineemployees
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Social Chapter
Estun strictly adheres to the Company Law of the People's Republic of China and theLabor Law of the People's Republic ofChina, as well as other relevant laws and regulations. The Company supports and respects theILO Declaration on FundamentalPrinciples and Rights at Workand other applicable international principles. Policies such as theEmployee Handbookhave beendeveloped and are consistently improved, with regular training conducted to standardize management practices in areas includingrecruitment and dismissal, compensation and promotion, working hours, and leave, thereby safeguarding employees' lawful rights andinterests. For outsourced production personnel, the Company signsTalent (Labor) Dispatch Agreementswith outsourcing serviceproviders, whileLabor Dispatch Agreementsare used for non-production dispatch workers, ensuring their rights are properlyprotected.The Company maintains a zero-tolerance policy towards violations of employee rights. To support this commitment, the Companyhas established theEstun Reporting Management System, which includes designated complaint email addresses and reportingchannels accessible to all employees. Clear procedures are in place for handling reports, and strict confidentiality requirements areimplemented to protect whistleblowers, ensuring that all issues are addressed in a timely and fair manner.Competitive Compensation SystemThe Company focuses on employees' overall compensation levels and has established a comprehensive remuneration structurecovering fixed salaries, short-term incentives, and medium to long-term incentives. This ensures employees receive fair compensationfor their work and adhere to the principle of equal pay for equal work. Fixed salaries are disbursed monthly based on a set amount,primarily considering employees' key skills, including work experience, education, position, and market scarcity. Short-term incentivesinclude immediate rewards, special bonuses, and annual bonuses, designed to motivate the achievement of company, departmental,and individual performance goals. Medium to long-term incentives include honorary rewards and equity incentives, primarily offeredto core employees to align the interests of shareholders, the Company, and employees, while retaining key talent. Except for fixedsalaries, short, medium, and long-term incentives are variable bonuses closely linked to the Company's operating performance,organizational performance, and individual employee performance. This mechanism allows employee income to be dynamicallyadjusted based on actual performance, effectively enhancing employee satisfaction and work output while reducing turnover ratesamong core employees.The Company regularly monitors and assesses market compensation levels and annual salary increases to ensure alignment withmarket rates. Compensation is closely tied to overall company performance and individual achievements, maintaining internal equity.In 2024, we implemented compensation reforms in the production system, adjusting the original time-based salary structure. Thisnew approach considers job value, individual skills, and work performance for comprehensive evaluation and flexible managementacross different workshops. We also introduced monthly assessment and salary implementation methods for marketing personnel,clearly stipulating that the financial indicator scores for marketing staff are determined by actual performance, thus motivatingemployees to be enterprising and innovative.
Rights Protection
Estun upholds the cultural philosophy of "people-oriented, respect for talent" and places paramount importance on protectingemployee rights. Through the implementation of comprehensive labor management systems, open communication channels, andextensive employee care and welfare programs, we aim to foster an innovative, inclusive, and respectful team, thereby buildingharmonious labor relations.
Employee Rights and Well-being
Labor contractsigning rate
%
Social insurancecoverage rate
%
Return-to-work rateafter parental leave
%
Total number of employeediscrimination incidents
Strengthening Performance Evaluation and Incentives
Clear Career Development Paths
The Company has established management (M-series) and professional (P-series) career tracks. ThePosition and RankManagement System, Job Series Qualification Standards, Cadre Selection Management System, andEstun SuperEngineer Management Measuresclearly define the qualifications employees should possess in both management andprofessional sequences. These policies standardize employee career development paths and facilitate both lateral and verticalprogression. Employees can choose their development path based on their interests, strengths, and abilities. The Company conductsannual qualification assessments and super manager certifications and reviews. In 2024, 234 individuals underwent preliminaryreviews for job qualifications, with 119 ultimately passing certification, achieving an overall pass rate of 51%. This process drivesemployee career development and self-actualization.
Employee Rights Protection Provisions in theEmployee Handbook
The Company adheres to legalemployment practices. Duringrecruitment and employment, wetreat all employees equally, withoutdiscrimination based on gender, age,ethnicity, beliefs, or other differences.We strictly prohibit child labor, forcedlabor, and other illegal or policy-violating employment practices. Werespect employees' right to freelychoose their employment, committo publishing objective and truthfulrecruitment information for jobseekers to choose freely, and do notrestrict employees from engaging inspecific work or work against their will.We provide equal employment anddevelopment opportunities for everyemployee.
In the Employee Code of Conductsection of theEmployee Handbook,based on requirements related tothe protection of female employeesand human rights policies, theCompany clearly states its strongopposition to workplace harassment.This includes, but is not limited to,physical harassment, psychologicalharassment, sexual harassment,verbal harassment, or abuse. Equalopportunities and treatment areguaranteed regardless of race,culture, religion, color, gender, age, ordisability status.
The Company consistently revises theleave and attendance regulations intheEmployee Handbook,clearlydefining working hour systems andovertime management standards toensure reasonable rest periods foremployees. We offer paid annualleave that exceeds national policyrequirements and flexible workinghours. We guarantee maternity leavefor female employees as requiredby national regulations, as wellas marriage leave, bereavementleave, and paternity leave for maleemployees in accordance withlocal regulations at each operatinglocation.
Equal Employment and
Freedom of Choice
Anti-discrimination andAnti-harassment
Working Hours and Leave
Aligning with its business development strategy, Estun has designed and constantly refines its performance management system.The Company has revised policies such as theCompensation Management Handbook, Individual Performance ManagementSystem,andEmployee External Professional Title Management Measures. These policies encourage employees to excel intheir roles, make significant contributions, and actively pursue professional qualifications, offering comprehensive career developmentsupport and fair, open advancement opportunities.
Promotion and Incentives
Refining Comprehensive Incentive PoliciesOptimizing the Performance Management System
Implementing Equity Incentives
We have issued the2024 CompanyIncentive Implementation Rules, introducingspecial incentive awards such as the QualityManagement Innovation Award, EfficiencyImprovement Breakthrough Award, QualityImprovement Breakthrough Award, andSolution Innovation Award. New honoraryincentive awards for Outstanding Managers,Technical Innovation, and Gold Lecturershave also been added.
We have revised and improved theIndividual Performance Management Systemandestablished a comprehensive performance indicator database. This system evaluatesperformance based on multiple dimensions, including work achievements, financialindicators, strategic initiatives/key tasks, learning and growth, bonus/penalty items,and values. Using an agile performance management approach, we conduct regulardifferentiated assessments by level and layer on a quarterly/annual basis to ensurefairness and effectiveness in performance evaluations. To strengthen employeegoal management and ensure the realization of company strategic objectives, weimplement monthly assessments for AR and SR personnel, linking evaluation resultsto performance-based pay to enhance employee initiative and sense of responsibility.The Company has established open channels for performance communication,actively collecting employee feedback and strengthening communication betweensuperiors and subordinates on goal setting, performance evaluation results, andperformance improvement guidance to help employees and the organization improveperformance and achieve objectives. If employees have objections to their evaluationresults, they may appeal to the Group's Human Resources Department within threeworking days after the performance result communication.To encourage talent retention, weprovide core employees with long-termincentives through annual equity awards.
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Estun values employee opinions and strictly adheres to relevant laws and regulations. The Company has implemented theEstunWorkers' Congress Management Measuresto foster an open, trustworthy, and efficient communication environment. Thisapproach enables employees to stay informed about company developments in real-time and encourages them to demonstrateownership by offering thoughtful and constructive suggestions for continuous improvement.
Equal Communication
In April 2024, the Company introduced the "Me and Estun" employee forum, providing an accessible and open platformfor employees to offer suggestions and engage in interactive communication. The forum encourages employees to voiceopinions on systems, processes, service quality of functional departments, and responsibility implementation. Clear timelinesare set for responsible departments to provide feedback and develop action plans, ensuring employee concerns areaddressed promptly. The Company maintains a non-retaliation policy for all feedback shared. Since its launch, the forum hasgained significant traction, with a cumulative 221 posts, 2,652 likes, and 178 comments.
Launching the "Me and Estun" Employee Forum to Enhance Company VitalityCASESupporting Female Employee DevelopmentEstun has clearly stipulated in itsEmployee HandbookandCompensation SystemHandbookthat eligible female employees are entitled to prenatal check-up leave,maternity leave, breastfeeding leave, International Women's Day holiday, and paid leave forparent-teacher conferences. Breastfeeding leave can be taken flexibly and accumulatedon a monthly basis, which further protects the rights of female employees. During thereporting period, the average paid parental leave was 63.73 days per person.
Female proportion among newlyhired employees in China
16.86
%
adoption andimplementation rate
with
%
Effective employeesuggestions
Union membership rate
%
Employee satisfaction score
91.5
points
The Company fully leverages the Workers' Congress as a bridge betweenmanagement and staff, ensuring that employees fully enjoy rights toinformation, participation, and oversight. This creates a conduciveenvironment for employees to contribute ideas and suggestions. In 2024,the Company held one Workers' Congress, where employee representativesreviewed and approved revisions to theEmployee Handbook,Compensation Management Handbook, andIndividual PerformanceManagement System, thereby safeguarding employee rights.The Company has established comprehensive feedback mechanisms,including employee general meetings, forums, and platforms for complaintsand suggestions. We regularly collect and analyze employee opinions tocultivate positive and harmonious labor relations.The Company conducts annual anonymous online employee satisfactionsurveys, covering areas such as employee activities, benefits, andprofessional development. The results are tracked and analyzed over timeto gain a comprehensive understanding of employee needs and opinions.By extensively soliciting feedback, analyzing root causes of issues, andpromptly adjusting management strategies, we consistently improve overallsatisfaction.
Implementing
EmployeeRepresentativeSystem
Opening Employee
Communication
ChannelsConducting
EmployeeSatisfaction
Surveys
Proportion of female employees in revenue-generating management positions
Proportion of female employeesin STEM-related positionsProportion of female employeesacross management levels
Juniormanagement
Middlemanagement
Operationsmanagement
positionsSeniormanagement
Qualitymanagement
positions
Informationtechnology and
informationsecuritypositionsRevenue-generating
managementpositions
17.91%
17.42%
6.12%
10%
Research andinnovationpositions
16%
66%
30%
43%
Estun strives to create a diverse, inclusive, and open workplace environment, bringing together talents from various backgrounds.Through mutual respect, understanding, communication, and acceptance, we strengthen cooperation, achieve workforce diversity,and thereby enhance team creativity and innovation capability.Diversity and Inclusion
Diverse Employee Composition
Ethnic minority employees ofChinese nationality
Ethnic minority employees proportionamong employees of Chinese nationality
1.54
%
Proportion of female employees in China
Number of employees by genderNumber of employees by ageNumber of employees by educational level
Number of Chinese employees by hierarchical levelNumber of employees by job functionNumber of employees by region
(persons)(persons)(persons)
(persons)(persons)(persons)
Maleemployees2,872
2,0581,137
Overseasemployees
1,170
Employees fromChina (includingHong Kong, Macao,and Taiwan)2,402
1,3521,730
36947
1,032
8301,211
2,223
13148
Femaleemployees
Employeesaged 31-50
Salespersonnel
Financepersonnel
Others
Employeeswith bachelor's
degrees
Middlemanagement
Employees aged30 and under
ProductionpersonnelTechnicalpersonnelAdministrativepersonnel
Employees withassociate degreesor below
Seniormanagement
Frontlineemployees
Employeeswith graduate/MBA degrees or aboveEmployeesaged 51 and above
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Estun aims to fulfill employees' aspirations for a better life by providing a comprehensive range of supplementary benefits. We focuson addressing practical issues faced by employees, promoting work-life balance, and enhancing employee satisfaction, happiness,and sense of fulfillment.
Benefits and Care
Welfare Assurance
The Company offers multifaceted welfare policies. The Employee Handbookspecifies various benefits and subsidy standards,including social insurance and housing provident fund, accident insurance, holiday and paid leave, employee activities, andcompassionate assistance, all designed to enhance employees' experience and sense of well-being.
Employee Care
The Company has established the Estun Love Fund and formulated theEstun Love Fund Management Measuresto assistemployees facing financial hardships due to severe illnesses or accidental injuries, alleviating urgent financial pressures for employeesand their families. Since its inception, the fund has supported five employees in difficulty, providing a total of RMB 105,000 inassistance. In 2024, the fund assisted one employee in need with RMB 10,000. Additionally, we organize seasonal welfare activitiessuch as summer cooling initiatives, winter warmth campaigns, and care packages for expatriate employees to foster a sense ofcollective care and support.
Work-Life Balance
The Company organizes a diverse range of cultural and sports activities, including employee sports meets, family fun days, andbirthday parties, to enrich employees' lives.
Employee birthday celebration
Employee sports meet themed "Starting from theHeart, Moving Towards the New"Estun "New Year" Family Fun Day
Programmer's Day activity
Endowment insurance, medicalinsurance, work-related injuryinsurance, unemployment insurance,maternity insurance, housingprovident fund, statutory holidays,and paid leave.
Statutory BenefitsSupplementary Benefits
Flexible working hours, complimentary work lunches, health check-ups, annual holiday benefits, birthday celebrations, employeeactivities, and compassionate assistance.Different allowances are provided based on job nature, such astransportation, communication, and computer allowances.
Safety Management System
Estun rigorously adheres to the Law of the People's Republic of China on Work Safety, theFire Protection Law of the People'sRepublic of China,and other pertinent laws and regulations. We steadfastly implement the principle of "safety first, preventionforemost, comprehensive governance," constantly enhancing our production safety system. We have developed robust productionsafety management policies to prevent and mitigate significant safety risks at their source, thereby safeguarding the occupationalhealth and safety of employees.
Occupational Health and Safety
Occupational Health and Safety TargetBreakdown IndicatorAchievement Status
Major or above casualties: 0
Major casualty incidents: 0
All achievedMajor fire incidents: 0Electric shock incidents: 0Occupational disease incidents: 0
Occupational disease cases identified in
health examinations: 0
All achieved
The Group has established a Production Safety Committee, chaired by the CEO. Thiscommittee oversees and manages the Group's production safety strategy, objectives,and performance implementation, as well as reviews and decides on critical productionsafety matters. Estun Automation Co., Ltd. and Estun Robotics Co., Ltd. have each formedtheir own Production Safety Committees and established dedicated Safety ManagementDepartments, implementing multi-tiered production safety responsibility systems.We regularly review and update our safety management system documents. In alignmentwith the key elements of the ISO 45001 Occupational Health and Safety ManagementSystem, we have enhanced our production safety management framework. We haverevised and improved 14 regulations, including theProduction Safety ResponsibilitySystem,Production Safety Accident Management System, andHazardousOperation Safety Management Regulations. These apply to all employees, includingoutsourced production personnel entering the Company's operational facilities, providingscientific and efficient guidance for production safety management.We establish annual safety management goals and regularly review and assess safety management work and its effectiveness.We enter into theSafety Performance Agreementwith relevant management personnel, linking goal achievement tomanagement performance evaluations.
Estun's Occupational Healthand Safety ManagementSystem Certificate
Management Structure and Responsibilities
Improved Management Systems
Clear Management Objectives
Production safety investment
RMB
5.60
million
Major production safetyaccidents
Work-related fatalities(including dispatched workers)
Lost time injury frequencyrate (LTIFR)
0.42
Employee injury rateper thousand
0.84
‰
Lost workdays due towork-related injuries
days
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Social Chapter
Safeguarding Employee HealthIn compliance with the Law of the People's Republic of China on the Prevention and Control of Occupational Diseases,the Company has formulated a comprehensive Occupational Health Management System. We implement a robustoccupational disease prevention responsibility system, regularly conduct occupational hazard monitoring and evaluation, andprioritize source prevention to enhance the safety of work environments and equipment operation. We diligently apply theLaborProtection Equipment Safety Management Regulations, providing employees with appropriate and effective personalprotective equipment. We organize pre-employment, on-the-job, and post-employment occupational health examinations foremployees exposed to occupational hazard factors, eliminating pre-employment risks, controlling occupational disease risksduring employment, and ensuring sustained employee health.
Health and safety trainingcoverage rate
%
Total health and safetytraining sessions
Total attendance in health andsafety training3,040
Average health and safetytraining hours per employee
1.94
Emergency drills conducted
recording
attendances
Enhancing Safety Awareness and Capabilities
The Company organizes annual Production Safety Month activities, including emergency evacuation drills, safety knowledgecompetitions, and awareness campaigns to enhance employees' safety consciousness and operational skills. Additionally, we conducttargeted drills for scenarios such as electric shock and sudden fires, focusing on control requirements for major risks, primary hazards,key areas, and critical processes. These initiatives aim to improve the Company's emergency response capabilities and bolster overallbusiness resilience.
Fire safety trainingSafety knowledge competition
Occupational diseaseincidence
Participants in occupationalhealth examinations
incidence ratewith
%
Special operations personnelcertification rate
%
Work-related injury insuranceinvestment
RMB
2.55
million
Employees covered by work-related injury insurance
2,402
Work-related injuryinsurance coverage rate
%
Supply Chain ManagementEstun recognizes the significant social and environmental impact of activities throughout the industrial chain. The Companymeticulously adheres to relevant national laws and regulations, including theLaw of the People's Republic of China on Invitationand Submission of Bidsand its associated implementation regulations. Our aim is to foster a respectful, equitable, and transparentcooperation environment, striving to build long-term, stable, and mutually beneficial relationships with suppliers and partners,collectively constructing a responsible supply chain.
Risk Identification and Hazard InvestigationThe Company conducts annual hazard source identification and risk assessments, thoroughly updating risk identification levels.Across three plant areas, over 500 risk points were identified, including 49 relatively significant risks, with no major risks detected. Weformulate targeted prevention and control strategies based on risk levels. Through the implementation of a rigorous safety permitsystem, we have developed detailed safety operation procedures and instruction manuals, conducting regular risk point inspectionsand control measures to ensure risks remain manageable. Throughout the year, we conducted 4 comprehensive safety inspections,12 monthly safety inspections, and 6 specialized safety inspections, thoroughly investigating safety hazards and supervising theirprompt rectification.
Note: Occupational health-related data is based on operations in China.
Impact, Risk, and Opportunity ManagementIndicators and Targets
Establish long-term qualitative quality objectives, cascadingthem through departments to ensure comprehension andimplementation by all employees.Constantly refine management systems for key materialprocurement and material shortage risk warning toenhance the procurability of critical categories andreduce overall costs.
GovernanceStrategy and Management Approach
Develop a comprehensive supplier lifecycle managementsystem encompassing admission, tiered management,performance evaluation, and elimination/replacementprotocols, ensuring suppliers consistently meet standards andrequirements.Maintain regular communication with suppliers, promptlyand accurately conveying the latest policies and pertinentinformation. Conduct targeted supplier training to enhancetheir capabilities.
Implement a supply chain management structurespearheaded by integrated supply chain management,with close collaboration from other relevantdepartments, ensuring stability and continuity in rawmaterial and product supply.Introduce 4 new management systems and refine 3existing ones.
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Social Chapter
Lifecycle Management
Supplier Audits
The Company has formulated and implements theSupplier Audit Management Measures, regularly conducting new supplieraudits, mass production supplier process audits, and unannounced inspections of mass production suppliers. Based on annualsupplier performance, we develop anAnnual Supplier Process Audit Plan, conducting on-site audits of suppliers in critical areassuch as product development, incoming inspection, process control, customer service, and compliance commitments. We issuecomprehensive audit reports with detailed conclusions and actively follow up on supplier improvements. When necessary, we providetargeted guidance on systems, quality, and technology to ensure suppliers implement effective measures to resolve issues within areasonable timeframe, supporting their continuous improvement efforts.
Evaluate potential suppliers based on theSupplier Development Application FormandNew SupplierSurvey Form.Facilitate the issuance and completion of four key agreements: the EstunQuality Agreement, GeneralPurchasing Framework Agreement, Confidentiality Agreement,and Supplier Commitment Letter.Introduce a trial production stage this year. Following sample verification, suppliers undergo a 3-6 month trialperiod before formal qualification, contingent on the absence of major quality or delivery issues.
Conduct monthly performance evaluations based on theSupplier Performance Evaluation andElimination Management Measures, assessing quality, supply, technology, service, and cost dimensions,with results summarized comprehensively.
Classify suppliers into A, B, C, and D categories based on performance ratings. Consider establishingstrategic partnerships with A-class suppliers maintaining this status for 6 consecutive months or more;maintain standard cooperation with B-class; implement improvement or elimination measures for C andD-class suppliers.
For suppliers rated C or below for two consecutive months, initiate a Supplier Elimination RecommendationForm and communicate the proposed elimination plan to relevant departments.Incorporate suppliers rated D for two consecutive months into the elimination plan by procurement,triggering relevant elimination procedures.Gradually reduce supply proportions for suppliers in the elimination plan over a 3-month period.Terminate procurement relationships with suppliers who refuse to address market quality issues with theirproducts and pursue appropriate accountability and compensation for losses.
SupplierAdmission
Performance
Evaluation
TieredManagement
Elimination
andReplacement
Advocating Responsible Procurement
During the supplier admission phase, Estun mandates that all suppliers sign a comprehensive Supplier Commitment Letter.Thisdocument clearly delineates expectations regarding supplier conduct and requires them to thoroughly consider the direct andindirect social impacts of their business activities. The commitment encompasses a wide range of critical areas including child laborprevention, elimination of forced labor, workplace safety and health standards, fair wages and benefits, reasonable working hours,non-discrimination policies, equitable treatment practices, freedom of association, ethical behavior, environmental stewardship, anti-corruption measures, conflict of interest management, and fair competition practices. The letter also explicitly outlines breach ofcontract consequences and remedial measures, thereby incentivizing suppliers to enhance their environmental, safety, and overallsocial responsibility performance. We place significant emphasis on risk assessment of key suppliers while also scrutinizing non-keysuppliers operating in high-risk ESG industries or regions. Upon verification of any major controversial incidents, we maintain a strictpolicy of terminating cooperation.Implementing Green ProcurementIn its commitment to reducing environmental impact, Estun has implemented a green procurement policy. We prioritize suppliersthat utilize renewable energy in their production processes and demonstrate a commitment to waste minimization strategies. In2024, the Company undertook a significant transition, replacing all oil-based cleaning agents used in metal material processingwith water-based alternatives. Additionally, all robot painting processes exclusively utilized water-based paints, thereby reducing theenvironmental footprint of our procurement activities.
Estun steadfastly adheres to responsible procurement principles, integrating supplier ESG factors into its admission and managementprocesses. We actively promote green procurement practices and collaborate closely with suppliers to fulfill our shared socialresponsibilities, thereby fostering a responsible supply chain.Responsible Procurement Management
Total number ofsuppliers
Chinese suppliers (including Hong Kong,Macao, and Taiwan)
Overseas suppliers
Estun adheres to the procurement philosophy of "constructing high-quality strategic ecological partnerships with supply safety asthe baseline and the creation of an industrial ecosystem as the value proposition." The Company has established and enhancedmanagement systems including theStrategic Supplier Management Process, Production Material Supplier ManagementProcess, Non-production Material Supplier Management System, Production Material Procurement ManagementProcess, and Production Material Supplier Performance Management Measures. These systems clearly delineaterequirements and standards for supplier lifecycle management while integrating quality management requisites. They reinforceincoming inspection and quality constraints, constantly improve supplier performance, and help establish an efficient and reliablesupply chain.
Supplier Management System
Completed
audits of new suppliers, with
passing successfully.Conducted
process audits of mass production suppliers,
% of which passed successfully.
2024 Environmental, Social, and Governance (ESG) Report8384
Advancing Together on a New JourneyAdvancing Together on a New Journey
Social Chapter
Diversified Suppliers: We have established a dedicated Supply Risk Elimination Team tasked with regularly reviewing high-riskmaterials with single-source supply across the Group. This team develops comprehensive solutions and reviews progress inweekly meetings to mitigate supply risks. For critical categories with single-source supply and no immediate alternatives in themarket, we proactively develop strategic partnerships to enhance supplier support and reliability.
Inventory Pre-management: We have formulated theMaterial Planning Strategy Management Measuresto developsound material procurement strategies. These strategies encompass safety stock settings and supplier inventory management,based on supplier preference models, supplier categories, material delivery cycles, supplier cooperation levels, and material riskprofiles. We consistently update these strategies to ensure efficient and agile management of material resources, enabling rapidresponse to supply needs, improved inventory turnover, proactive risk mitigation, and enhanced product competitiveness.
Unified Management: Our Procurement Center and R&D Department have established a specialized unification team toaddress material standardization challenges. This team works to unify primary and backup material codes, subsequentlyallocating procurement shares based on supply risks, pricing dynamics, and other relevant factors.
Long-term Cooperation: We strategically sign long-term contracts with high-quality suppliers to secure stable pricing for keyraw materials, thereby mitigating risks associated with market price fluctuations.
Supply Disruption Risk
Price Fluctuation Risk
Improving supply chain resilience and security has become a critical imperative for enterprises pursuing high-quality development.Estun has formulated aRisk Material Shortage Early Warning Management System. Leveraging data on supplier geographicaldistribution and material delivery performance, we systematically identify, assess, manage, and monitor potential supply chain risks,including supply disruptions, price inflation, ESG concerns, and unforeseen events. We have established a tiered risk classificationsystem and implement targeted remedial or alternative measures accordingly. Our approach involves building a diversified supplychain ecosystem and employing differentiated procurement strategies to ensure supply continuity and reliability. In 2024, theCompany maintained stable raw material supply, with no production disruptions attributable to material shortages.Risk Prevention and Control Measures
Estun actively engages in collaborative quality improvement initiatives with its suppliers. Addressing critical issues such as substandardPPM failure rates and inconsistent quality processes among certain suppliers, we deploy dedicated technical and management teamsto provide targeted support. We engage in joint improvement actions with suppliers, effectively ensuring supply chain product qualitywhile enhancing suppliers' quality management capabilities.
Supporting Supplier Growth
In 2024, the Company launched a comprehensive quality improvement plan to address issues of excessively high PPM failure ratesand unstable quality processes in products from specific suppliers. Cross-functional teams comprising R&D, procurement, andother relevant personnel formed quality improvement project teams in partnership with suppliers. These teams collaborativelydetermined improvement objectives and strategies. By meticulously examining suppliers' material anomaly records, categorizingmaterial defects, identifying key areas for rectification and process optimization, proposing targeted improvement plans, andrigorously following up on the implementation of corrective measures, we effectively assisted suppliers in enhancing their productquality control and management standards.
Implementing Quality Improvement Initiatives to Empower Supplier DevelopmentCASE
Community Engagement and PhilanthropyEvery action reflects our dedication; each endeavor reveals our founding principles. Estun actively responds to the national call forrural revitalization by consistently integrating the principles of co-building, co-governance, and shared benefits into communitydevelopment. We engage in a wide range of charitable activities and volunteer services, standing in solidarity with our communities.
Supporting Rural Revitalization
Committing to Public Welfare and Charity
We implement targeted consumption support initiatives by purchasing high-quality agricultural products from rural areas. This approach helps farmersincrease their income while contributing to broader rural revitalization efforts.
We actively support and encourage employees to participate in variousvolunteer service activities, fostering positive societal impact through practicalactions within our capabilities. During the reporting period, Estun donateda total of six industrial robot equipment sets to Anhui University of Scienceand Technology and Chengdu Industry & Trade College. These donations,valued at approximately RMB 460,000, provide crucial support for teaching,scientific research, and practical applications in the field of intelligent roboticsat these institutions. This initiative aims to enhance students' practical skills andemployment competitiveness, thereby advancing intelligent manufacturingeducation in higher education institutions.
Specialized consumption support procurement
RMB169,200
Total charitable donations
RMB781,400
Enhancing Supply Chain Resilience
Estun maintains an unwavering commitment to avoiding the procurement of conflict minerals from conflict-affected and high-risk areas. This includes, but is not limited to, tantalum, tin, tungsten, gold, cobalt, and their derivatives. We actively encourageour suppliers to comply with Section 1502 of theDodd-Frank Wall Street Reform and Consumer Protection Act, requiringthem to disclose the origin of minerals used in their products. This ensures the compliance and transparency of our supplychain by clearly identifying the sources of minerals procured by suppliers. During the reporting period, no suppliers were foundto be using conflict minerals or their derivatives.
Conflict Minerals Risk
2024 Environmental, Social, and Governance (ESG) Report8586
Key Performance TableEnvironmental Indicators
Key Performance TableKey Performance Table
IndicatorUnit20232024EnvironmentalManagement
Total investment in environmental protectionmillion RMB1.931.72Environmental pollution incidents/00Compliance rate for wastewater, exhaustemissions, and plant boundary noise
%100100Hazardous waste disposal compliance rate%100100
EnergyManagement
Natural gascubic meters392,466.02396,673.24Gasolinetons18.6924.27Dieseltons26.9063.18Outsourced electricitymillion kWh16.1717.30Self-built photovoltaic million kWh1.483.45Total comprehensive energy consumption
tons of standard coal equivalent2,575.802,781.12Comprehensive energy consumption intensity
tons of standard coal equivalent/
RMB 1 million revenue
0.550.69
Greenhouse GasEmissions
Direct GHG emissions (Scope 1)tons of CO
equivalent842.00882.05Indirect GHG emissions (Scope 2)tons of CO
equivalent8,721.858,994.82Total GHG emissionstons of CO
equivalent9,563.859,876.87GHG emission intensity
tons of CO
equivalent/RMB 1million revenue
2.062.46
Water ResourceManagement
Total water withdrawaltons177,681.00136,176.00Water withdrawal intensitytons/RMB 10,000 revenue0.380.34
WastewaterManagement
Total wastewater dischargetons/96,461Chemical oxygen demand (COD)tons7.2010.98Ammonia nitrogentons0.911.53Suspended solids (SS)tons2.859.6Total phosphorustons0.080.19Total nitrogentons0.930.58Animal and vegetable oilstons1.230.01Petroleumtons/0.055-day biochemical oxygen demand (BOD5)tons/3.37Anionic surfactants (LAS)tons/0.04Exhaust gasManagement
Total exhaust gas emissions10,000 cubic meters26,013.7120,642.28Non-methane hydrocarbonskilograms347.56378.98Particle matter (PM)kilograms405160.36Tinkilograms/135.03Nitrogen oxides (NOX)kilograms/3.55WasteManagement
Hazardous waste generationtons97.44136.46Hazardous waste recycling rate%516.25General waste generationtons2,2171,716.15General waste recycling rate%4536
1.?
Total Comprehensive Energy Consumption: Calculated according to the State Administration for Market Regulation and the StandardizationAdministration's GB/T 2589-2020General Rules for Calculation of Comprehensive Energy Consumption, expressed in units of standard coal.2.GHG Emissions: Exclusively refer to carbon dioxide emissions, not including other GHGs such as methane and nitrous oxide. Scope 1 GHG emissionsinclude emissions from the combustion of fossil fuels such as diesel, gasoline, and natural gas, as well as from industrial production processes. Theemission factors for Scope 1 are derived from the guidelines issued by the National Development and Reform Commission:
Guidelines for Accounting andReporting GHG Emissions for Machinery Manufacturing Enterprises (Trial)andGuidelines for Reporting Environmental Key Performance Indicators. Scope2 emissions cover those from outsourced electricity; the emission factors for 2024 power in China are taken from the national average power grid factorpublished in theAnnouncement on the Release of Carbon Dioxide Emission Factors for Electricity in 2022(Announcement No. 33 of 2024) issued jointly bythe Ministry of Ecology and Environment and the National Bureau of Statistics. For international operations, emission calculations followGreenhouse gasreporting: conversion factors 2024andPower Sector Carbon Intensity in Germany 2000-2023.
Note:
Governance Indicator
IndicatorUnit20232024
Special Audit on business ethics and anti-corruptiontimes32
Note: 1. The gender structure data in 2023 is based on operations in China.
Social Indicators
IndicatorUnit20232024
R&D Innovation
Total R&D investmentmillion RMB503503R&D investment as a percentage of operating revenue%10.8112.55Number of R&D staffpersons1,2011,032Proportion of R&D staff%31.1928.89Supply ChainManagement
Total number of suppliers/499607
Chinese suppliers (including Hong Kong,Macao, and Taiwan)
/443596Overseas suppliers/5611ProductionSafety
Investment in production safetymillion RMB6.665.60Major production safety accidents/00
Employees
Total number of employeespersons3,8513,572
Male employees%80.3880.40Female employees%19.6219.60Employees aged 30 and under%36.0231.83Employees aged 31-50%54.1657.61Employees aged 51 and above%9.8210.56Employees with associate degree or below%50.0448.43Employees with bachelor's degree%37.7037.85Employees with graduate/MBA degree orabove
%12.2613.72Technical staff%31.1928.89Sales staff%22.4123.24Financial staff%2.162.32Administration staff%9.0610.33Production staff%33.9133.90Others%1.271.32Proportion of Chinese female employees in middle andsenior management
%18.9123.54Employee turnover rate%1920.18Total attendance of online employee training sessions/33,98739,276Total online employee training hourshours81,736113,080.26Annual online training hours per employeehours35.947.08CommunityEngagement
Total spending on charity donationsRMB2,269,900781,400Total spending on consumer supportRMB352,800169,200
Byregion
ProfessionalStructure
GenderStructure
AgeStructureAcademicStructure
2024 Environmental, Social, and Governance (ESG) Report8788
Index Table
Index TableIndex Table||About This ReportAbout This Report
Estun disclosed the information referenced in this index for the period from January 1, 2024, to December 31, 2024, in accordancewith the Shenzhen Stock Exchange – Guidelines for Self-Regulation of Listed Companies No. 17 – Sustainability Reporting (Trial),andaligned with theGlobal Reporting Initiative (GRI) Standards.
About This ReportThis is the fourth Environmental, Social and Governance (ESG) report publicly released by Estun Automation Co., Ltd. It aims to informstakeholders of the Company's practices and accomplishments in economic, social, and environmental aspects. Meanwhile, theCompany also seeks oversight from stakeholders to enhance its ESG management practices more effectively.Organizational Scope:
The scope of this report aligns with that of the annualconsolidated financial statements of the Company.Time Range:
This report covers the period from January 1, 2024, toDecember 31, 2024.Reporting Period:
This report is an annual report.
TheGRI Standardsby the Global Sustainability StandardsBoard.The United Nations Sustainable Development Goals (SDGs).
ISO 26000: 2010 - Guidance on Social Responsibilitybythe International Organization for StandardizationThenational standard Guidance on Social ResponsibilityReporting(GB/T36001-2015) by StandardizationAdministration of China.TheShenzhen Stock Exchange Guideline No.17 onSelf-Regulation for Listed Companies — SustainabilityReporting (Trial), theShenzhen Stock Exchange GuidelineNo.3 on Self-Regulation for Listed Companies —Preparation of Sustainability Reports.
The operational and management data disclosed in this reportare as of December 31, 2024. The data and cases presentedin this report are all derived from original operational recordsor financial statements of Estun and its subsidiaries. Unlessotherwise specified, all monetary amounts mentioned in thisreport are measured in RMB. In the event of discrepancies withthe financial statements, the financial statements shall prevail.
Reporting Scope
Reporting Principles
Source of Information
Develop the preparation plan → Assemble the drafting team→ Identify stakeholders and significant issues → Determinethe reporting framework → Write, revise, and refine the report→ Report review → Report publication → Collect feedback forcontinuous improvement.
Preparation Process
The Company assures that there are no false records,misleading statements, or significant omissions in the contentsof this report, and is responsible for its truthfulness, accuracy,and completeness.
Assurance of Accuracy
This report is published in PDF format and is available on thefollowing websites: the Shenzhen Stock Exchange officialwebsite (http://www.szse.cn), the CNInfo news portal (http://www.cninfo.com.cn/new/index.jsp), and the official website ofEstun Automation Co., Ltd. (http://www.estun.com).For a hard copy of the report, please email zqb@estun.com orcontact us at 025-52785597.(To minimize environmental impact, we recommendchoosing the digital version of the report. We appreciate yourcooperation!)
Report Availability
Definition of Terms
Abbreviation in theReport
Definition of Terms
Estun, the Group,the Company, we
Estun Automation Co., Ltd.CloosCarl Cloos Schwei?technik GmbHTrioTrio Motion Technology LtdM.A.i.M.A.I GMBH & CO.KGBarrettBARRETT TECHNOLOGY，LLC
Reporting FrameworkShenzhen Stock Exchange Sustainability Reporting GuidanceGRI Standards
Message from the Chairman/2-22About Estun/2-1，2-6，201-1Responsibility 2024//Sustainable DevelopmentManagement Strategy
Section 12.1, Section 12.2, Section 12.3, Section 12.5, Section 13, Section
14.1, Section 15.1, Section 15.3, Section 17, Section 18.1, Section 18.2,
Section 18.3, Section 18.4, Section 51, Section 52, Section 53.1, Section
53.2
2-12，2-13，2-14，2-16，2-17，2-22，2-24，2-29，3-1，3-2，3-3Responsibility TopicRobotics + Education:
Empowering EducationalInnovation andTransformation
Section 38, Section 40, Section 41203-2
Future Chapter | Activating New Quality Productive Forces
Creating Industrial ValueSection 20, Section 28, Section 41, Section 42.3, Section 42.4203-1，203-2，305-5Innovation-DrivenDevelopment
Section 11.1, Section 11.2, Section 11.3, Section 11.4, Section 19, Section41, Section 42.1, Section 42.2, Section 42.3, Section 42.4, Section 43.1
2-27，3-3，203-2Professional Quality Service
Section 11.1, Section 11.2, Section 11.3, Section 11.4, Section 19, Section44, Section 47.1, Section 47.2, Section 47.4
2-25，2-27，3-3，416-2，417-1，417-2，
417-3
Governance Chapter｜Promoting High-Quality Development
Enhancing CorporateGovernance
Section 11.1, Section 11.2, Section 11.3, Section 11.4, Section 19, Section51, Section 53.1, Section 53.2
2-9，2-10，2-11，2-12，2-17，2-18，2-19，2-20，
2-21，2-27，3-3，405-1Risk and ComplianceManagement
Section 11.1, Section 11.2, Section 11.3, Section 11.4, Section 12.4,Section 19
2-27，3-3，2-13，2-24，207-1，207-2，
207-3Upholding Business Ethics
Section 11.1, Section 11.2, Section 11.3, Section 11.4, Section 19, Section54, Section 55.1, Section 55.3, Section 55.4, Section 56.1, Section 56.2
2-27，3-3，205-2，205-3，206-1Information Security andPrivacy Protection
Section 11.1, Section 11.2, Section 11.3, Section 11.4, Section 19, Section44, Section 48.1, Section 48.2, Section 48.3, Section 48.4
2-27，3-3，418-1
Environmental Chapter | Building a Sustainable Future Together
EnvironmentalManagement
Section 19, Section 20, Section 33.1, Section 33.22-27，3-3Addressing Climate Change
Section 11.1, Section 11.2, Section 11.3, Section 11.4, Section 19, Section
20, Section 21, Section 22.1, Section 22.2, Section 22.3, Section 23.1,
Section 23.2, Section 23.3, Section 23.5, Section 24, Section 25.3, Section
26, Section 34, Section 35.1, Section 35.2, Section 35.3
2-27，3-3，201-2，302-1，302-3，302-4，302-5，305-1，305-2，305-4Resource ManagementSection 34, Section 36.1, Section 36.2, Section 37.2, Section 37.32-27，3-3，303-1，303-3，303-5Pollution Prevention andControl
Section 29, Section 30.1, Section 30.2, Section 30.3, Section 30.4, Section
30.5, Section 31.1, Section 31.2
2-27，3-3，303-2，303-4，305-7，306-1，306-2，306-3，306-5Noise ManagementSection 29/Biodiversity ProtectionSection 29, Section 32.2
2-27，3-3，101-2，101-4，101-5，304-1，304-2，304-3
Social Chapter | Advancing Together on a New Journey
Human CapitalDevelopment
Section 49, Section 50.1, Section 50.2, Section 50.3
2-7，2-19，2-23，2-27，2-30，3-3，201-3，401-1，401-2，401-3，403-1，403-2，403-3，403-4，403-5，403-6，403-7，403-9，403-10，404-1，404-2，405-1，406-1，408-1，409-1Supply Chain Management
Section 11.1, Section 11.2, Section 11.3, Section 11.4, Section 19, Section
44, Section 45.1, Section 45.2
2-27，3-3，204-1，408-1，409-1Community Engagementand Philanthropy
Section 38, Section 39.2, Section 39.3, Section 403-3，203-1，203-2，413-1
Appendix
Key Performance Table//Index Table//About This Report/2-2，2-3，2-14
2024 Environmental, Social, and Governance (ESG) Report8990
Estun Automation Co., Ltd.
Address: No. 1888 Jiyin Avenue, Jiangning District, Nanjing, Jiangsu ProvinceTel: 025-52785597