About this Report
Reporting PeriodThe reporting period is from January 1, 2023 to December 31, 2023,and extends beyond the foregoing scope for some content to enhancethe comparability and forward-looking of this Report.
This is the 4th environmental, social and governance (ESG) reportpublicly released by Xiamen Solex High-tech Industries Co., Ltd. ThisReport discloses the practices and performance of Xiamen Solex High-tech Industries Co., Ltd. in economy, environment, society, corporategovernance and other responsibility elds in 2023. With this Report,we want to communicate with stakeholders and to respond to theirexpectations and demands in a systematic manner.
OverviewBasis for Preparation
? Sustainable Development Goals (SDGs) Corporate Action Guidelines? Sustainability Reporting Standards (GRI Standards) from GlobalReporting Initiative
? Guidelines for Compiling Corporate Social Responsibility Reports inChina from Chinese Academy of Social Sciences (CASS-CSR5.0)
? Guidelines for Compilation of Social Responsibility Reports fromChina’s National Standards (GB/T36001-2015)
? ISO 26000: Guidance on Social Responsibility (2010) from International
Organization for Standardization
? Guidelines on the Self-Regulation Rules for Companies Listed onShanghai Stock Exchange No. 1 - Compliant Operation from ShanghaiStock Exchange
Abbreviations
? Xiamen Solex High-tech Industries Co., Ltd. (“Solex” or the“Company”);? Zhangzhou Solex Smart Home Co., Ltd. (“Zhangzhou Solex”);? Bestter (Xiamen) Technology Inc. (“Bestter”).
Report Access
You can download the electronic version of this Report on the o?cialwebsite of Shanghai Stock Exchange (http://www.sse.com.cn) orXiamen Solex High-tech Industries Co., Ltd. (http://www.solex.cn/notice.html) for more information about the Company.
Source of DataThe data used in this Report includes the original data on actualoperations of the Company, pubic data published by governmentauthorities, annual financial data, relevant internal statistics reports,third-party questionnaires and third-party evaluation interviews,etc. The financial data in this Report are in RMB. In case of anyinconsistency with the nancial report, the nancial report shall prevail.
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
In 2023, the recovery trend was seen in global economy,but the growth momentum was waning. Overall demandin export markets declined and recovery was at a slowpace. However, the China’s economy is staging a steadyrecovery. Against the backdrop of complex and severemacroeconomic environments and unexpected factorsboth at home and abroad, the Company made concertedeffort to actively respond to the uncertainties andchallenges in the economic environments and markets,and deepen the strategy of the “IDM Hardware InvisibleChampion Incubation Platform”. By empowering productvalues with intelligence, health and green, the Companyfocuses on the R&D design and intelligent manufacturingof IDM hardware products in such categories as kitchen& bathroom and health, beauty and health, and emergingsmart health hardware, with a view to building a platform-based company.Solex is committed to integrating the concept ofenvironmental protection, social responsibility, andcorporate governance (ESG) into its production andoperation management, optimizing its own businessand development strategies, improving its corporate
governance and operational level; emphasizinginnovation and creativity, increasing R&D investment,promoting the transformation of scientific andtechnological achievements, driving technologicalinnovation, enhancing market recognition, reducingmarket and operational risks in the new developmentpattern; implementing responsible procurement,strengthening customer relationship management;safeguarding employee rights, valuing employee growth,paying attention to green environmental protection,deploying green development models based on its owncharacteristics, integrating the concept of green low-carbon into the entire production management processfrom green supply gain management to green factory,and enhancing employees’ awareness of environmentalprotection by promoting green packaging and greeno?ce.The Company fully implements the national strategy ofstrengthening the country through quality improvement,and spares no effort to promote its high-qualitydevelopment. Also, it fullls corporate social responsibilitywith a high sense of responsibility and mission, actively
participates in various social welfare activities, and givesback to the society and benets the people with practicalactions, contributing to a harmonious society.Solex always pays attention to the impact of environmentalprotection, social responsibility, corporate governance,etc., and devotes itself to achieving its own long-term andstable growth. Practicing ESG is an important measurefor the Company to pursue the concept of sustainabledevelopment. This effort is not only necessary for“going out”, but also promotes the implementation of thelocalization strategies and gains competitive advantagesof long-term development in this process. Further, theCompany strongly believes in the power of technologicalinnovation, maintains the entrepreneurial spirit, andincreases the pace of becoming stronger, contributingto the improvement of human life quality, sustainableeconomic, and social development.
“
“
Message from the Chairman
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
Founded in 2004, Xiamen Solex High-tech Industries Co., Ltd. insists onintegrating R&D innovation and industrial design into products, with the“IDM Hardware Invisible Champion Incubation Platform” as its compassand capitalizing on its excellent technological innovation, productdevelopment and user demand mastery capabilities. With the conceptof model, manufacturing, and technology sharing, and by empoweringproduct values with intelligence, health, and green attributes, it focuses onthe R&D design and intelligent manufacturing of IDM hardware productsin such categories as kitchen & bathroom and health, beauty and health,and emerging smart health hardware. It aims to enhance the coverage ofproducts in market segments, and spares no e?ort to provide high-value-added IDM hardware products with “innovation, design, and manufacture”for professional well-known brands, large chain retailers and brande-commerce players around the world.Note: (IDM stands for Innovation (original technology creation), Design (art design), and Manufacture (digital intelligent manufacturing) respectively)
SubsidiariesSolex Technology Co., Ltd.
Zhangzhou Solex SmartHome Co., Ltd.
Solex Italy S.p.a
Bestter (Xiamen)Technology Inc.
Solex High-tech Industries(Hong Kong) Limited
? Shower? Shower System? Faucet? Smart Toilet? Smart Bathroom Cabinet
? SPA Beauty Shower Head? Facial Care? Water Flosser? Hair Care Device? Smart Skin Analyzer
? Smart Fitness System? Smart Sleep Monitoring System
Kitchen & Bathroom and Health
About Solex
Beauty and HealthEmerging Intelligent Health
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
Kitchen & Bathroom
and Health
Beauty and Health
Emerging Intelligent
Health
ShowerFaucetSmart Bathroom CabinetSmart Toilet
SPA Beauty ShowerHair Care DeviceSmart Skin AnalyzerFacial CareWater Flosser
Smart Sleep Monitoring SystemSmart Fitness System
Product matrix
Shower System
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
Historical Development
Established the Italian DesignCenter, combining internationaldesign concepts with an e?cientdesign team
Sanitary Park was completed,establishing an advanced faucethardware production base in China,covering an area of approx. 23,590square meters, and specializing inthe production of hardware productswith a focus on faucets
Founded inXiamen
1995
Xiamen Solex High-techIndustries Co., Ltd. wasestablished
2004
Solex Science and Technology Parkwas completed, establishing the basefor shower and hoses with the nationalleading production scale, covering an areaof approx. 39,997 square meters, andspecializing in the production of plasticproducts with a focus on shower
200620082010
Publicly o?eredconvertiblecorporate bonds inthe amount of RMB610 million
2022
Acquired “Bestter”to expand kitchen &bathroom and healthproducts
2021
Phase I of ChangtaiIntelligent Park wascompleted and putinto use
2020
Solex (Stock Code:
603992) wassuccessfully listed onthe SSE for A-shareIPO
2019
Planned to invest RMB2 billion to establishZhangzhou ChangtaiIntelligent Park,covering an area of 531mu (Chinese unit ofarea)
2016
Solex laboratorywas certied by theCanadian StandardsAssociation (CAS)and the ChinaNational AccreditationService for ConformityAssessment (CNAS)
2013
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The Company emphasizes fostering the corporate culture and values with Solex characteristics, always“believes in the power of technological innovation”, and keeps pursuing excellent performance. With themission of “creating a better health life for the people through continuous innovation”, it actively fullls itssocial responsibilities, establishes a positive and good corporate image, gathers wisdom and strengthfrom all sides, and strives to realize the vision of “maintaining a single world champion and becoming aleader in health hardware”.
By upholding the IDM Hardware Platform strategy, and with innovation and creation at the core, theCompany insists on the IDM model and deeply explores the human health life demand to provideB-end customers with smart, healthy, and green hardware product solutions. In addition, with the ideaof technology sharing, it lays out various segmented categories around the underlying logic to enhanceproduct value.
Mission
Vision
Core Value
Create a better health life forthe people through continuousinnovation
Maintain a single worldchampion and become aleader in health hardware
Believe in the power oftechnological innovation
Corporate cultureDevelopment Strategy
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
China’s Service-oriented ManufacturingDemonstration Enterprise
Won the title of National Green Factory
National Industrial Design Center
National Enterprise Technology Center
National High and New Technology
Enterprise
Won the Corporate Nodes of National IndustrialInternet Identication Analysis System
Top 100 Strategic Emerging Enterprises in
Fujian in 2023
Top 100 Private Manufacturing
Enterprises in Fujian
Major Honors
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
Major Honors
Top 100 Xiamen Private
Enterprises
Top 20 Xiamen Private TechnologyInnovation Enterprises
Top 20 Xiamen PrivateManufacturing Enterprise
Top 10 Xiamen Green Enterprises
Joined Xiamen Medical Device
AssociationIndustrial Leader in ZhangzhouTop 10 Xiamen IP EnterprisesTop 100 Xiamen Enterprise
Top 100 Private Innovative
Enterprises in Fujian
Elite Team of Foreign Trade
Enterprises in Fujian
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
With great importance to communication and exchanges with internal and external stakeholders, Solex identies shareholders, governmental authorities, customers, employees, partners, communities, and the public as itsstakeholders, communicates with stakeholders through various channels to understand their demands and expectations, respond to them, and promote the continuous improvement of ESG management.
Stakeholders
ShareholdersGovernmental Authorities and RegulatorsCustomersEmployeesPartnersCommunities and Public
Expectations and
Demands
? Intellectual Property Protection? Risk Control and Compliance? Globalization Strategy? Investor Protection
? Business Ethics and Anti-corruption? Clean Technology and Opportunities? Toxic Emissions and Wastes
? Product R&D andInnovation
? Product QualityManagement? Customer Services
? Green Products? Data Security andPrivacy Protection
? Energy Saving andEmission Reduction
? Employee Salaries and Benets? Employee Training andDevelopment? Occupational Health and Safety
? Industry-university-research Cooperation? Responsible Procurement
? Environmental Management? Green O?ce
Communicationand Response
? Intellectual Property ProtectionMechanism
? Compliance with Laws and
Regulations
? Cooperation with Regulatory
Inspection
? Globalization Layout? Regular and TemporaryInformation Disclosure? Unobstructed InvestorCommunication Channels
? Integrity in Operation? Clean Technology Development? Sound Risk Management? Sound Environmental Safety System
? TechnologyInnovation? Quality Assurance? Handling of CustomerFeedback? CustomerSatisfaction Survey
? Green Product Design? Data Security andPrivacy Protection? Energy-savingTechnologyImprovement
? Protection of Employee Rightsand Interests? Sound Remuneration System? Unobstructed PromotionChannels? Diverse Training Systems? Rich Employee Activities? Construction of Health and Safetysystems
? Industry Discussions andExchanges? Sustainable Supply ChainManagement
? Environmental ManagementRules and Systems? Green O?ce
ESG Management
Stakeholder Analysis
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
To gain a deeper and more accurate understanding of the expectations and demands of stakeholders, andto enhance the professionalism, relevance, and substance of this Report, the Company invited employees,suppliers, service providers, customers, investors, governmental authorities, regulators and other stakeholdersthrough questionnaires to select and analyze 20 material topics related to the Company’s environment,society and governance, directing and laying the foundation for the construction of the Company’s sustainabledevelopment systems.
Importance to Enterprise DevelopmentLow
High
? Identify material topics thathave significant impact onthe Company’s growth andstakeholders accordingto the national macro-policy orientation, domesticand international socialresponsibility standard study,with reference to annual hottopics, industry trends andrating concerns, and basedon the actual development ofthe Company.
? Communicate with the internaland external stakeholdersof the Company by ways ofonline questionnaires.
? 2023 stakeholder surveyscover employees, customers,investors, suppliers, partners,communities, the public, andother related groups.
? Conduct a statistical analysis
of the topic scores basedon the survey results, adjustmateiral topics with referenceto internal management andexternal expert opinions,confirm importance rankings,form a matrix of materialtopics, and respond to topicsof concern to stakeholders inthis Report.
Identication and Selection
of Topics
Stakeholder Surveys
Comprehensive Analysis of
Results
Industry-university-research Cooperation
GlobalizationStrategy
Green O?ceEnvironmentalManagementClean Technology andOpportunities
Risk Control andComplianceIntellectual PropertyProtectionEnergy Saving andEmission Reduction
Investor Protection
Occupational Healthand SafetyToxic Emissions and Wastes
Data Security and Privacy
Protection
Customer ServicesProduct R&D and Innovation
Product QualityManagementEmployee Salariesand BenetsResponsibleProcurementEmployee Trainingand DevelopmentGreen ProductsBusiness Ethics and Anti-corruption
Importance to Stakeholders
Matrix of material topics
Matrix of Material Topics
High
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities for
the Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
In strict accordance with the requirements of the Companies Law, Securities Law, Code of Corporate Governance for Listed Companies,Rules Governing the Listing of Stocks on Shanghai Stock Exchange and other laws and regulations, the Company has established itssound internal control system, regulated its operations, and enhanced corporate governance, so as to ensure that the corporate governancestructure is legal and compliant, and operates stably. During the reporting period, the convening and voting procedures of all meetings of theCompany complied with the relevant requirements of the laws and regulations, and of the Articles of Association and rules of procedure, andall voting results were legal and valid, laying a solid foundation for the compliant operations of the Company.
The Company ensures that the general meeting of shareholderscan exercise its rights in accordance with law, and operate inan efficient and regulated manner and make scientific decision-making. In strict accordance with the provisions and requirements ofthe Code of Corporate Governance for Listed Companies, Articlesof Association and Rules of Procedure for the General Meeting ofShareholders, the Company convened and held general meetingsof shareholders, and engaged lawyers to witness general meetings.Shareholders attended general meetings of shareholders and hadthe rights to be informed, speak, inquire, and vote at such meetingsin accordance with law.
the Company held a total of
general meetings of shareholders
including
annual general meeting
During the reporting periodStrategy Committee
Audit Committee
AuditDepartment
Nomination CommitteeRemuneration andAppraisal CommitteeBoard ofSupervisorsSecretary of Board
of DirectorsSecurities A?airsDepartment
Environmental
ManagementCenterAdministrativeCenter
HRDepartment
EquipmentProcurement
Center
ProductCategoryBusinessUnit
InnovationDesignCenter
FinanceCenter
IT Center
General Meeting of
Shareholders
Board of DirectorsGeneral Manager
Organization chart of the Company
E?cient and Regulated Governance
General Meeting of Shareholders
extraordinary general meetings
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
In accordance with the relevant laws and regulations, the Company hasformulated the Rules of Procedure for the Board of Directors, speciedlegal person governance structure, and regulated the mode of the meetingand decision-making procedures of the Board of Directors, urges thedirectors and the Board of Directors to effectively perform their duties,and improves the regulated operation and scientic decision-making levelof the Board of Directors. Independent directors of the Company are allsenior professionals with expertise in law, risk management, accounting,finance, industry-related technology, and business management, etc.Four special committees are established under the Board of Directors,i.e. Strategy Committee, Audit Committee, Nomination Committee, andRemuneration and Appraisal Committee. Each Committee includes atleast one independent director. Except for the Strategy Committee, thechairmen of other Committees are independent directors. With this, itenhances the autonomy and independence of the Committees’ operationsand provides scientic and professional opinions for the Board of Directorsto make decisions.
Audit Committee
Strategy Committee
? Guide and supervise the establishment and implementation of internal audit systems? Review the annual internal audit work plans of the Company? Supervise and urge the implementation of the internal audit plans of the Company? Guide the e?ective operation of the Audit Department? Report to the Board of Directors on the progress and quality of internal audits as well as signicant issues identied in
internal audits
? Coordinate the relationship between the Audit Department and external audit institutions such as accounting rms andnational audit authorities
? To conduct research on the long-term development strategy planning of the Company, and make suggestions? To conduct research on signicant strategic investments and nancing schemes that shall be approved by the Board of
Directors in accordance with the provisions of the Articles of Association, and make suggestions? To conduct research on signicant capital operations and asset management projects that shall be approved by theBoard of Directors in accordance with the provisions of the Articles of Association, and make suggestions? To conduct research on other signicant matters a?ecting the development of the Company, and make suggestions? To track and inspect the implementation of the aforementioned matters
Board of Directors
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
NominationCommittee
Remunerationand Appraisal
Committee
? To study the selection criteria and procedures for directors and senior o?cers, and
make suggestions to the Board of Directors? To extensively search for qualied candidates for directors and senior o?cers, screen
and review such candidates and their qualications? To make suggestions to the Board of Directors with respect to the nomination,
appointment or removal of directors
? To make suggestions to the Board of Directors with respect to the appointment or
dismissal of senior o?cers? To exercise other functions and powers granted by the Board of Directors, and make
recommendations to the Board of Directors in accordance with the provisions of the
laws, administrative regulations, of the CSRC, and of the Articles of Association
? To work out remuneration plans or schemes based on the main scope, duties
and responsibilities, importance of director and senior officer positions, and the
remuneration level of other related positions of other related companies? Remuneration plans or schemes mainly include but are not limited to performance
evaluation criteria, procedures and major evaluation systems, as well as major
reward and punishment schemes and systems? To review the performance of directors (non-independent directors) and senior
o?cers of the Company, and conduct annual performance evaluations on them
? To oversee the implementation of the remuneration system of the Company
the Company had
members of theBoard of Directors
independent directors
representing
%
representing
%
meetings of the Board of Directors
Audit Committee meetings
Nomination Committee meetings
Strategy Committee meetings
Remuneration and AppraisalCommittee meetings
The average attendance rate ofthe board of directors was
%
During the reporting period, the Company held a total of
By the end of the reporting period
female directors
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The Company has set up the Board of Supervisors inaccordance with the requirements of the Companies Law,Articles of Association and Rules of Procedure for the Boardof Supervisors, and procured the supervisors and the Boardof Supervisors to effectively perform their supervisory duties,namely, overseeing the legality and compliance of corporategovernance, significant matters and financial position, andperformance of duties by the directors, managers, and othersenior officers of the Company in a manner responsible toshareholders.
the Company hadmembers of the Board ofSupervisors
executive supervisors
employee supervisor
female supervisors
representing
%
meetings of the Board of Supervisors
with an average attendance rate of
%
During the reporting period
By the end of the reporting period
Any mattersput to the voteof the meetingwere approvedunanimously
Board of Supervisors
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
With great importance to the information disclosure and investor communication, the Company ensures a good relationship with investors by promoting transparency and trust.
In strict accordance with the provisions of the laws and regulationssuch as Companies Law, Securities Law, Administrative Measures forInformation Disclosure by the Listed Companies, and Rules Governingthe Listing of Stocks, and of the Articles of Association, the Companyhas formulated the Management Regulations of Information Disclosureto regulate the information disclosure of the Company and the relevantpersons with information disclosure obligation, enhance its informationdisclosure management level and information disclosure quality, andprotect the legitimate rights and interests of the Company, its shareholdersand the relevant stakeholders.The securities affairs representative and securities affairs officer of theCompany assist in the information disclosure activities of the Company,timely understand important information generated by the Companyin its daily business activities, and promptly release it; organize andarrange the preparation of the Company’s periodic reports, interimannouncements, and other documents to be submitted in accordancewith the requirements of other securities regulatory authorities, etc.; andassist in the collection, transmission, summarization, organization andrelease of information from the Company’s various information points. Thespecialists urge the Company and the relevant persons with disclosureobligation to comply with the provisions on information disclosure andperform their disclosure obligation in good faith.
The matters stated in the informationdisclosed by the Company shall beconsistent with the facts
The information disclosed by theCompany shall be free from anysignificant omissions that may bemisleading
The contents of the informationdisclosed by the Company shallaccurately reect objective reality
Truthfulness
Completeness
The information disclosed in the Companyshall be finished within the period asspecified by the relevant laws andregulations, and other normative documents
the Company disclosed
The Company has disclosedad hoc reports
periodic reports
Number of announcementattachments and documentsposted online
份
During the reporting period信息披露原则
Sound Investor Protection
Information Disclosure
Accuracy
Timeliness
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The Company maintains unobstructed andtransparent communication and interactionchannels with investors, and has formulatedthe Investor Relationship Management Systemto effectively protect the legitimate rights andinterests of investors, especially small and mediuminvestors, enhance investors’ understandingand recognition of the Company, and uplift thecorporate governance level and overall corporatevalue, thereby achieving the goal of respecting,rewarding and protecting investors. The Companyhas an investor relationship o?cer, responsible formanaging investor communication, maintaininginvestor relationship, monitoring market sentiment,disclosing ESG information, promoting the brand,and strengthening effective communicationbetween the Company and investors.
In addition to mandatory information disclosure,the Company voluntarily discloses otherrelevant information of concern to investors
Principle of full information
disclosure
The Company complies with the provisions of thenational laws and regulations and the requirementsof the securities regulatory authorities and ShanghaiStock Exchange on information disclosure, andensures that the information is disclosed in a truthful,accurate, complete and timely manner.Principle of compliantinformation disclosure
The Company treats all shareholders andpotential investors equally to avoid selectivedisclosure
Principle of providing investors
with equal opportunities
The Company conducts investor relationship workin an objective, truthful, and accurate manner toavoid excessive publicity and deception
Principle of good faith
When selecting the way of the investorrelationship work, the Company fully considersimproving communication efficiency andreducing communication costs
Principle of high e?ciencyand low consumption
The Company actively listens to investors’ opinionsand suggestions, achieves two-way communicationbetween the Company and investors, so as to formpositive interaction.Principle of Mutualcommunication
The Company receivedinvestors
times in total through phoneor on-site methodsperformance briengsonline collective reception99708
received over
investors
answered
investor hotlines
received and responded to
emailsrepied to
held
held
During the reporting period
投资者关系工作基本原则
.com.com.com
Investment Communication
e-interactive questions
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
In May 2023, the Company participated in the “2023 Collective Reception Day forInvestors of Listed Companies in Xiamen” jointly organized by the CSRC Xiamen O?ceand the Listed Companies Association of Xiamen. The Company’s senior officerscommunicated with investors online regarding the issues of concern to investors such as2022 and 2023Q1 performance, cash dividends, corporate governance, developmentstrategies, operating conditions and sustainable development of the Company, providedvaluable information for investors, and created channels and platforms for interactionand communication between the Company and investors.
2023 Online Collective Reception Day for Investors
With shareholder return as its top priority, the Company has clearly established the basic principles and specic policies ofprot distribution in the Articles of Association. The Board of Directors of the Company updates the Shareholder Dividendand Return Plan every three years and rewards shareholders rst through cash dividends.In the future, the Company will continue to share its fruits with investors through its steady operation and goodperformance.
the Company paid cash dividendstimes178,851,700totaling
RMB
78,598,500distributing out of 2022 prot in the rst time
RMB
50.74
representing of 2023 net protsattributable to the parent company
%
During the reporting period
out of 23Q1-Q3 prot in the second time
100,253,200
RMB
Since its listing, the Company has constantly paid reasonable returns to shareholders through cash dividends. By theend of 2023
the Company’s cumulative cash dividends amounted to RMB361,311,200
(including tax)
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
In accordance with the relevant provisions of the Companies Law, Securities Law, Rules Governing the Listing of Stocks, Guidelines for the Internal Control of Listed Companies, Articles of Association and other laws and regulations, andbased on the actual situation of the Company, the Company has formulated its Internal Control System, establishes and e?ectively implements the sound Internal Control System to enhance its risk management level.
Signicant internal control activitiesPurposes of internal control of the company
Internal control overmajority-owned
subsidiaries
Internal control overcapital management
Internal control
over theappropriation of theCompany’s fundsby controllingshareholders andmanagementInternal controlover signicantinvestments
Internal control
over work
safety
Internal controlover related partytransactions
Internal control overexternal guarantees
and nancing
Internal control
on informationdisclosure
To establish and improve the internal organizational structure that complies with modern corporate managementrequirements, form scientic decision-making, implementation and supervision mechanisms, e?ectively prevent controllingshareholders and actual controllers from abusing control rights to encroach on the interests of the Company, harm theinterests of small and medium investors, and ensure the achievement of the Company’s business management objectivesTo improve the operational efficiency and effectiveness, enhance quality, establish an effective risk control system,strengthen the risk control capabilities, increase returns to shareholders, and ensure the healthy operation of all businessactivities of the CompanyTo establish a sound internal economic environment, prevent and promptly identify and correct various errors andfrauds, and safeguard the security and integrity of the Company’s assetsTo ensure that the Company discloses information in a truthful, accurate, complete and timely mannerTo ensure the compliance with and implementation of the relevant national laws, regulations, and the Company'sinternal rules and regulations
Risk Control and Compliant Operation
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The Audit Department under the Audit Committee of the Board of Directors is responsible foroverseeing and inspecting the internal control system of the Company. The Audit Departmentregularly inspects the deficiencies in the Company’s internal control system, inspects andoversees the Company’s internal control once a year, assesses the e?ectiveness and e?ciencyof its implementation and makes suggestions for improvement, and carries out the specialinspections and supervisions over the Company’s internal control from time to time.
Fully responsible for formulating, implementing andimproving the Company’s internal control system, andregularly carrying out comprehensive inspections ande?ectiveness evaluations over the Company’s internalcontrolFully responsible for overseeing the implementation of theCompany’s internal control system, ordering the Companyto correct the deficiencies in internal control identified,and report to the general meeting of shareholders on theimplementation of the Company’s internal control systemResponsible for establishing, improving, andcomprehensively advancing the implementationof the Company’s internal control system in theoperational process, and inspecting the formulationand implementation of various specic internal controlsystems by the Company’s departments and units
The Company timely identies and systematically analyzes the risks related to the achievement of internalcontrol objectives in operational activities, so as to nd a reasonable strategy to deal with the risks. Basedon the risk evaluation results, the Company takes corresponding control measures to keep the risks withintolerable levels, and ensures that the management’s instructions are carried out.
Internal control governance structure
Risk control measuresEstablish
ControlObjectives
RiskResponseStrategies
RiskIdentication
RiskAnalysis
? Identify risks based on the established objectives, and take necessary actions to manage
risks
? Objectives are categorized into objectives both at the level of the Company and the levelof business process? Accurately identify internal and external risks related to the achievement of controlobjectives? Determine corresponding risk tolerance level? Adopt a combination of qualitative and quantitative methods to analyze and rank theidentified risks based on their possibility of occurrence and degree of impact, anddetermine the key areas and risks to be controlled in priority? Form a risk analysis team to work according to strictly regulated procedures, so as toensure the accuracy of risk analysis results? Balance risks and returns, and determine the risk response strategies based on theresults of risk analysis and with reference to the risk tolerance level
? Reasonably analyze and accurately understand the risk preferences of di?erent groups,take appropriate control measures, including four risk response strategies, namely riskavoidance, reduction, sharing, and tolerance
Board ofDirectorsBoard of Supervisors
Management
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The Company attaches great importance to and continues e?orts to foster a culture of integrity, and integrates the code of businessethics into daily operations. Additionally, it cultivates a clean work atmosphere and strengthens the integrity building through training,education, warning reminders or otherwise, so as to ensure normal business order and the healthy development of the Company.The Company continues to strengthen the two-tier anti-commercial bribery compliance system of Solex and its subsidiaries, and adoptsa zero-tolerance approach towards commercial misconduct across the entire Group. Bestter has formulated the Code of Conduct onIntegrity, which regulates employees’ integrity in their work, safeguards the interests of the Company and shareholders, and encouragesfair competition. Bestter has set up an Integrity Committee, and established a sound supervision and restriction mechanism to ensurethe implementation of regulations and the popularization of internal anti-corruption awareness.
Organization chart of the Integrity Committee
Audit DepartmentEducationDepartmentPublic SupervisionIntegrity Group
? Oversee the integrity building of the Company, and investigate and handle
disciplinary o?ences
? Conduct audits on the Company’s internal nancial activities and management
behaviors, identify issues and promptly report them? Organize and carry out integrity education and training for employees,enhance integrity awareness, and regulate behaviors? Implement integrity requirements and regulations? Establish a public supervision platform with whistleblowing hotlines and aCEO mailbox, responsible for receiving the reports on integrity building fromemployees and the public
Solex has established an employee whistleblowing mailbox and dedicated hotline,improved the whistleblowing management system, and regulated whistleblowingmanagement. The relevant handlers strictly comply with confidentiality rules, notdisclose any pending matters to the complainants or the accused, promptly handleproblems, and address relevant reports and feedback within 3 working days.
Code of Conduct for Integrity
Make coordinated advances in the integrity building of the Company, andformulate related policies and systemsChairman of the Integrity
Committee
Vice ChairmanRegulatoryDepartment
? The employees of the Company should e?ectively safeguard theinterests of the Company and shareholders, and not misuse theirauthority or damage the assets and equities of the Company? The employees of the Company should diligently perform their
responsibilities, and not misuse their authority for private gain ordamage the interests of the Company? The employees of the Company should properly exercise theirmanagement rights to prevent any behavior that may infringe onpublic interests and the Company’s interests? The employees of the Company should be thrifty, and spendposition-related expenses in accordance with the relevantregulations? The employees of the Company should exercise theirauthority properly, perform their duties faithfully, and any dutyencroachment or other illegal appropriation is strictly prohibited
Anti-corruption and Integrity in Operation
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The Company strengthens the protection and management of information assets through the building of digital platforms and systems, and ensures the stable and secure operation of information systems. In the future, theCompany will further improve business operational e?ciency and security to provide customers with safer and more reliable services.
Transition from 1.0 Basic IT “Network Management Mode” and 2.0 Standardization, Digital Framework Preparation to 3.0 Deep Integration,Intelligent Manufacturing, Digital Decision-makingTo comply with the Industry 4.0 and Made in China 2025 industrialpolicy, the Company deepens the application of next-generationinformation technology, transforms production methods throughdevelopment of digital productivity, and enhances new capabilities tothrive and evolve in the digital age, so as to achieve its transformation,upgrading, and innovative development.
Digital development history of the Company
Characteristics of digital transformation
KingdeeFinanceSystem
SAP R/3Online
Mobile O?cing
Intelligent
Online
Online
SAP 升级 ECC6
SAP BW Data
Data Mining and Analysis
Big Data, Mobility
Weaver OAUpgrading
MES System
Solex IT 1.0Solex IT 2.0Solex IT 3.0The Companywas founded
2000
2005
2007
2010
2018
2008
2016
2020
Digital-drivenExcellence inOperations
Data and Information Safety
Digitalization Construction
New
capabilities
as
the
main
focus
Data
requirements
as
the
driving
force
as
the
core
Change
of
business
Value-driven
bene
ts
as
the
guid
in
g
prin
c
ip
l
e
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The Company defines the overall details and priorities of digital transformation projects,devotes output results, corresponding technological manpower, and time. Meanwhile, italso completes the overall planning of data asset management, provides comprehensiveinformation technology support through ten different dimensions, builds an intelligent bigdata cloud platform, and reshapes productivity and business processes.
R&DMarketingServiceCRM+OAManufacturingERP+OAProcurementERP+OADecision-
making
BI
HRHR+OAFinanceERP+OAOperation andMaintenance
InfrastructureO?ceOA
Marketing
MarketingWebsiteCRMAPSPRBW DataWarehouseiHRe-LearningiRecruitAutomatedAccountingVirtualizationServiceMobile Platform
WeChatSRMMRPPOData MiningExpenseControlIntelligent Operation
and Maintenance
IM
APPWMSElectronicContracts
MiniProgramsWIPSRMBig Data
Reimbursement
CompletedUnder Construction andPlanning
WeChat O?cialAccountMES
PDM+OAPLM
Informatization system framework
Highlighted applications of digital transformation
Processmanagement(BPM and OA)system
Supply chainmanagement
system
Manufacturing
executionsystem (MES)
? Integrate sales, production, logistics, quality, nance, HR and other businessdata? Provide full-process support from order placement to shipment? Deeply support various production and operation processes within the
Company
? Include daily administrative o?ce, production management, sales support,
nancial management, and R&D processes (PLM)
? Achieve whole-process closed-loop system management? Receipt, inspection and other relevant steps of incoming materials are
operated at the mobile terminal through scanning QR code on the label? Manage the manufacturing process, obtain machine production process
parameters, provide “transparent factory” production and operation data in
real time? Improve production efficiency and product quality, and facilitate product
quality traceability? Connect various systems of panel furniture production to achieve semi-
automated processing in the production
ERP (SAP)
system
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
Sales transactionCRM system
R&D design system
Support mobile o?ce
? Solve the outdated architecture of the old system, separate
front end and back end of the new system, address heproduct-linked quotations, further interact with customersat the mobile terminal, and manage customer projectse?ectively
? Three-dimensional design, digital presentation, and system
integration to generate production data such as materialtypes and usage? Support VR to view the design e?ect
? Timely push the report data of core business? Data center equipped with large screens to display data inreal time? Support email sending and receiving, integration of report
tools, and integration of daily a?air sheets? Intelligent meeting room hardware support
? Solve data mining and analysis for use by the managementof the Company in decision-making? Drill down layer by layer to pinpoint business data issues
The Company’s informatization covers all business departments to create a digital operation and digital factoryfor the manufacturing industry. In this process, the risk is controlled e?ectively.Big data BI system
Source ControlProcess Management
Review and Summary
Management? New knowledge and
techology learning
? Budget planning
mechanism? Research methodology? Project review mechanism? Introduction of technicalresources
? Establishment of theproject team? Task and planmanagement
? Development processcontrol? Milestone reporting? Standardized testing
? Ex post review andsummary
Internal design process of digital transformation
Smart factory
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The Company has formulated the Computer Network and DataSecurity Management Measures, Data Backup and RecoveryManagement Regulations, and other information security systems toguarantee the security of internal and external computer networksand data, the protection of intellectual property and the condentialityof core technologies of the Company. The IT Center of the Companyis responsible for formulating and revising network and data securitymanagement systems, establishing and maintaining computernetworks, managing electronic media and electronic media devices,and ensuring the security of the computer networks and data of theCompany.
To effectively ensure the normal management and operation ofcomputer networks, the Company implements unified networkexit management, unified user management, and publicizes andpopularizes the information security knowledge within the intranet ofthe Company. Departments using electronic equipment keep a clean,safe, and good work environment for electronic equipment to avoidpotential network information security risks.
Not place hazardous items such as flammable, explosive,strongly corrosive, or strongly magnetic materials in the electronicequipment application environment, and follow the principle of“whoever uses is responsible”Set a password for the electronic equipment with password settingfunctionTurn off electronic equipment when leaving work or not usingelectronic equipment for a long time
Measures for the standardized use of electronic equipment
Structure of the Information Security Group
Turn off the power switch of electronic equipment in case of longdowntime, such as statutory holidaysNot use others’ passwords to log into others’ electronic equipmentwithout permissionContact the relevant electronic equipment administrator of the Group’sIT center for assistance when forgetting the password
Head of theInformation Security
GroupDeputy Head of theInformation SecurityGroupInformation SecurityO?cer
Information Liaisons
O?cer
Information Security Protection
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The Company has formulated the InformationSecurity Management Procedures, InformationResource Management Procedures and otherinformation security systems to ensure theinformation security of the Company. It organizes theassessments on information security managementlevel and the regular vulnerability scans to identifyproblems in the information security managementprocess and propose improvement measures.
Network Security
ManagementDesktop TerminalSecurity Management
Website Security
ManagementSystem Administrator
Permission
Management
Server Security
ManagementData SecurityManagement
ApplicationSystem AccessManagementDisaster Recovery
Management
The Company has formulated the Information Security Emergency Plan, strengthens the network operation security and information security, effectively handlesresponses to public emergencies related to network and information security, and further improves the ability and level of preventing and controlling network andinformation security emergencies, so as to ensure its network operation security and information security. Additionally, it has established a leading group of informationsystem emergency response, responsible for leading, organizing, and coordinating the response to information system emergencies throughout the Company.
The Company organized its employees and theemployees of subsidiaries to participate in informationsecurity education and training in June 2023. Thetraining covered the email safe use standardsand other relevant contents, and the employeeswere assessed online to check whether they havegrasped the contents. This training standardized theoperating methods of the employees, enhanced theirawareness of information security prevention, andcreated a secure information work environment.
Information security education and training
Information security training
Identication of information security risks
Information safety management measures
Emergency prevention and warning measures
Physical-layer Security Risk AnalysisNetwork Security RisksSystem Security RisksApplication Security Risks? System environment securityrisk? Physical device security risk
? Network architecture security risk? Network communication protocolsecurity risk? Network operating systemsecurity risk
? Operating system security risk? Database security risk? Application system security risk? Virus hazard security risk? Hacker intrusion security risk
? ID authentication andauthorization control security risk? Condentiality and non-repudiation risk in informationtransmission? Physical-layer security riskanalysis
Improve the monitoring, forecasting, andwarning system for public emergenciesrelated to network and information securitySet information security level protectionand carry out information security riskassessmentsMake data backup and registration ofservers and data centers, and establish adata disaster recovery mechanism
Information SecurityAwareness TrainingInformation SafetyRisk Assessment
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
Solex always insists on the business philosophy of“innovation, design, and manufacture”. Guided bythe strategy of “IDM Hardware Invisible ChampionIncubation Platform”, and capitalizing on the matureR&D model, the Company focuses on closelyintegrating the technological innovation and productR&D of the IDM hardware category with the marketdemand, continuously builds, integrates, andoptimizes its three major resource-sharing platformsof “model, manufacturing and technology”, enrichesproducts with more cutting-edge functions andhigher value through continuous innovation, so as tocomprehensively enhance the core competitivenessof its segmented categories.
The Company values the cultivation of highly-competentR&D engineers and managers with team spirit, devotesitself to discovering and nurturing strategic R&Dmanagement talents, and has established a hierarchicalsystem consisting of experienced technical R&D talentswith a reasonable professional structure. Meanwhile, theCompany adopts a mentorship system for one-to-onetraining, and o?ers targeted cultivation to the R&D teamfrom time to time through internal training, universityeducation and overseas training.
QuantitativeIndicators
Unit202320222021R&D expenditureRMB (in 0,000)20,353.1719,221.9816,956.82Proportion of totalR&D expenditure torevenue
%6.826.045.70R&D personnel Person 664799732
Post-doctoral research workstation ofSolex
The Company as the subsidiarywas recognized as a High and NewTechnology Enterprise
Innovation-drivingDevelopment
R&D Infrastructure
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
To encourage the R&D team to actively engage in thetransformation of new technologies, the Company hasformulated the Measures for Rewarding TechnologyResearch Achievements, R&D Reward System, R&DIncentive System, and other documents to innovationincentive, and has set up the Innovation Output Prize,Innovation Transformation Prize and other awardsto stimulate the innovation capabilities of individualsand teams. These measures aim to improve theoverall research level and technological status ofthe Company, and promote the commercialization ofresearch achievements.
The Company has established a Scientic and Technological Achievement Award Committee, which consists of 9 professionals from diverse elds, including 6research project heads, and others heads of the Intellectual Property Center, External Relations Technology Department, and Finance Department. Each memberof the Committee has distinct responsibilities and jointly handles matters related to scientic and technological rewards in the Company.
? To manage and guide scientific and
technological achievement awards? To improve the scientic and technologicalachievement award work of the Company? To guide and revise the scientific andtechnological achievement award policy? To review and reward achievements
? To evaluate the award-winning scientic andtechnological inventions,research projects, technologyinnovation transformations,and technological innovationreforms of the Company
? To provide the subsequentsecurity for the researchachievements of the Company
? To recruit talents and engage
the experts related to theCompany’s business
? To improve the EvaluationCommittee’s constructionof the hierarchical systemconsisting of external talents
? To timely pay awards basedon the nal evaluationresults
Research Project Head
Scientic and TechnologicalAchievement Award Committee
Finance DepartmentIP CenterExternal RelationsTechnology Department
Innovation incentive assessment dimensions
InnovativenessFreshness
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The Company regards technological innovation as its core strategies, and insists on the innovation and research of original, fundamental, andindustry-critical technologies. The Company focuses on underlying key technology research, continuously strengthens R&D and innovationinvestment, and takes the lead in such elds as contactless sensing technology, quantitative technology, and micro-current technology.The Company has established a Product R&D Review Committee, responsible for its technological development strategy and R&D strategy,and organization of internal technical exchanges and discussions, and conduct of technical reviews, phased reviews and evaluations on theestablished R&D projects. The Review Committee helps ensure that R&D aligns with the strategic development direction of the Company,promotes internal R&D team communication, and advances R&D progress.
Product R&D Process
The Company actively promotes intelligent construction. By the end of thereporting period, the Company has established a globally leading intelligentmanufacturing base covering an area of near 700,000 square meters, andpossessed multiple leading automated production lines in the peer industryand globally advanced intelligent production management systems.
ProjectEstablishment
Planning andStandardization
Testing and EvaluationCommercializationR&D
Intelligent production lines
Innovative R&D Achievements
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
? Break through the limitations of traditional
and basic household needs of consumers,and seek to create high value-added healthlife demands for consumers based on the“IDM Hardware Platform” Strategy and withthe “intelligence, health and green” as themain R&D directions.? Grasp the consumer demand for
antibacterial, beauty, health care, healthywater quality, and health testing in kitchenand bathroom health products or spaces,and continuously upgrade categories suchas showers, faucets, and smart toilets basedon the concept of “health”.
? Focus on IDM business model, acceleratecontinuous innovation in core and keytechnologies, such as water saving andemission reduction, water quality improvement,skincare improvement, interchangeable headtechnology, radio frequency technology,microcurrent technology, smart detection,spectral imaging technology, and light waveenergy saving.
? Against the backdrop of segmentation,deepening and diversification of the marketand user needs, the Company accelerates thedevelopment of new products in the beautyand health fields, including smart detection,skin health, dental care, hair care, and beautyskincare, to meet the needs of customers atdi?erent levels and stages.
? Have begun to incubate new smart healthhardware with the help of the endogenousR&D technology sharing platform, acceleratethe R&D of emerging smart health products,and extend smart health hardware to abroader range of elds.
? Take smart sleep products and smart
sports health products as the two core R&Dcategories. The smart sleep products focuson the smart pillows and smart thin pads,while smart sports health products mainlyinclude smart strengthen, smart mats, andsmart sports rehabilitation.
? Independently engage in algorithm
research and AI application, IOT scenarioconstruction, and the R&D and productionof smart electronic components, providesoftware and hardware support for varioussingle-product categories and empowerintelligent scenes or spatial solutions formulti-category integration.? Continue to explore AI algorithms + healthfields such as deep image algorithms,3D vision, and sensor fusion algorithms,which have been applied in various multi-category smart hardware terminals such ascommercial skin analyzers, smart mirrors,and anti-snoring pillows.
Kitchen and BathroomBeauty and HealthSmart HealthAI Technology
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
Xivi commercial skin tester
The Company innovatively developed a carbonated spring shower system, which canincrease the concentration of carbon dioxide gas in water to 2g/L, thereby improvingblood ow speed in the human body. Tests showed that a user’s blood ow speedwhen using this system is 1.2 times that when using ordinary warm water, therebypromoting user metabolism and helping relieve fatigue. In addition, this system alsohelps expand capillaries, accelerate blood circulation, increase circulating bloodvolume, and reduce the incidence of cardiovascular diseases. Also, it can make thepH value of the bathwater weakly acidic, neutralizing residual hair bleach and dye inthe hair, thereby e?ectively removing alkaline substances, and caring for the user’shair.
The Company works with well-known domestic hospitals and universities toresearch and develop the Xivi commercial skin tester with 17 innovative skintesting dimensions such as horn plugs, and the ve-spectrum snapshot function.Such device has unique AI skin testing technology, and combines skin medicaltesting standards and clinical testing with a big data skin health intelligentanalysis algorithm more suitable for the Asian population. Based on AIOTdeep learning, it can quantitatively analyze skin conditions, generate electronicdetection reports and intelligent skincare plans in 10 seconds, and provide moremedically professional skin diagnostic treatment program for large applicationssuch as beauty salons and cosmetic counters. The Xivi commercial skin testerhas obtained multiple patent certicates, and its innovative technology has wonrespected recognition.
Carbonated Spring Shower System
For patients with obstructive sleep apnea (OSA) and snoringduring sleep, the Company has developed a smart pillow withan inserted AI neural network and air pressure sensing monitor,which monitors multiple airbag pressures, adjusts the height of theairbags, and gently changes the head’s sleeping position, therebyimproving airway ventilation, alleviating snoring symptoms, andimproving various health problems caused by breathing pauses.
Smart ultra-quiet anti-snoring pillow changing sleep position
Carbonated Spring Shower System
Xivi commercial skin tester
Smart anti-snoring pillow
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
Participation in craft design competitionsThe Company sets up a professional industrial design team, which actively participates in international and domestic industrial design competitionssuch as the iF Industrie Forum Design, Red Dot Design Award, International Design Excellence Awards (IDEA), GOOD DESIGN AWARD and Cross-Straits Industrial Design Competition. While promoting internal innovation and R&D enthusiasm, the Company exchanged and cooperated withoutstanding companies participating in the competitions, and learned their advanced design concepts and technologies to enhance its brand imageand expand its market channels.
、、、、、、、、、、、
AwardRecipient
AwardsAwarded byProduct NameCategorySolexiF Design Award 2023
International Forum Design GmbH
Oceanus (Quantitative Sensing WaterDispenser)
ShowerWings (Sheet Lifting Pole)ShowerZhangzhouSolex
iF Design Award 2023Double (Cup Cleaning Faucet)HardwareSolex Red Dot Winner 2023Red Dot Award AG
Minerva (Shoulder Spray Lifting Pole) ShowerDetective (Dental Detection Pen) ShowerSolex IDEA 2023-Finalist
Industrial Designers Society of America
Shoulder Spray Lifting ShowerHardwareSlick ShowerShowerZhangzhouSolex
IDEA 2023-FinalistSleave (Smart Anti-snoring Pillow) HealthSolex GOOD DESIGN AWARD 2023GOOD DESIGN AWARD BUREAU
PIONEER ELMO (ECO-PLASTICLIFTING POLE)
Shower - LiftingPoleDetective (Oral Detection Pen)BeautyZhangzhouSolex
Bronze Award in the 5th
Cross-Straits “Longjiang Cup”
(Zhangzhou)Organizing Committee of Cross-StraitsIndustrial Design Contest
Venus
Shower - LiftingPole
Excellence Award in the 5th
Cross-Straits “Longjiang Cup”
(Zhangzhou)
Pioneer (Front Aluminum Wall-MountedLifting Pole)
Shower - LiftingPole
Bronze Award in the 5th Cross-Straits “Longjiang Cup” (Zhangzhou)G-mark Award Certicate 2023
iF Award Certicate 2023
Red Dot Winner Certicate 2023
IDEA Award Certicate 2023
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
With great importance to patent applications and intellectual property protection, the Companyhas formulated documents such as the Basic Management Control Procedures for IntellectualProperty, Patent Management System, Trademark Management System, and IntellectualProperty Handbook. It has established an Intellectual Property Center, responsible forclassifying, grading, maintaining and modifying intellectual property, issuing warnings forpotential infringement, and working out e?ective preventive plans. The Company continuesefforts to improve intellectual property construction, and has won the titles of “Xiamen IPDemonstration Enterprise”, “Fujian IP Advantage Cultivation Enterprise”, and “National-levelIP Demonstration Enterprise”.
The Research and Development Management System of the Company clearly stipulates that the Product R&D Departmentresponsible for new technology and product R&D shall le patent applications for each self-developed technology, conductpatent searches and analysis, and timely protect and avoid infringement of intellectual property. The Intellectual PropertyReview Committee has been established under the Intellectual Property Center, responsible for evaluating and reviewingintellectual property applications and maintenance led by various departments to ensure the protection and management ofthe Company’s R&D achievements.The Intellectual Property Center is responsible for collecting and updating information on national and local governmentintellectual property laws and regulations, policy measures, domestic and foreign related patent literature, and trademarkregistration, and publishing it on the “Intellectual Property Management Center” module on the Company’s internal websitefor reference by the R&D team. Regarding possible intellectual property issues, the Company has formulated the IntellectualProperty Emergency Response Measures, clarifying the work responsibilities of relevant departments, so as to timely respondto possible intellectual property disputes such as patents and trademarks and protect its legitimate rights and interest.
Technology leads the future andintellectual property contributes todevelopment
Intellectual Property PolicyLong-term Goal
Stimulate creation, e?ective utilization,emphasize protection, strengthenmanagement and cultivate culture
Intellectual property dispute handling process
Number of inventionpatents held
pcs
Number of new patentsin a year
Number of patents underreview
Number of trademarksheld
Number of patents held
pcs1,346
Discover Infringement
Subject to O?cialInvestigation
Track ProcessingRelease Solutions
Intellectual Property Protection
pcspcs
pcs
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
Standard NameStandard No.
Standard Nature(International/National/Industry Standards)Ceramic Cartridge FaucetsGB/18145-2014National StandardSanitary Ware - Pressure Assistant Water Flushing DevicesGB/T 26750-2011National StandardSanitary Ware - Gravity Water Flushing Devices andSupports
GB 26730-2011National StandardSanitary Fixture for Water SavingGB/T 31436-2015National StandardTerminology and Classication for the Kitchen and SanitaryWare Fittings
GB/33733-2017National StandardMinimum Allowable Values of Water Efficiency and WaterE?ciency Grades for Showers
GB28378-2019National StandardQuality Classification for the Kitchen and Sanitary WareFittings (Zhangzhou Solex)
Chu Wei Wu Jin Biao Wei
2021
National StandardGeneral Requirements for the Kitchen and Sanitary WareFittings (Zhangzhou Solex)
Chu Wei Wu Jin Biao Wei
2021
National StandardGeneral Technical Specications for FaucetsQB/T 1334-2013Industry StandardFlow Rate Regulators for Sanitary TapwareJC/T 2117-2012Industry StandardNon-contact Sensing-actuating Valves for Water SupplyAppliance
JC/T 2115-2012Industry StandardTest Method and Acoustic Group on Noise Emission fromAppliances and Equipment Used in Water Supply Installations
JC/T 2193-2013Industry Standard
Standard NameStandard No.
Standard Nature(International/National/Industry Standards)
Specication of Plastic Sanitary Ware Security ProductionJC/T2353-2016Industry StandardSpecication for Hardware Sanitary Ware Security ProductionJC/T2355-2016Industry StandardLavatory for Sanitary FittingsQB/T2658-2017Industry StandardAccessories of BathroomQB/T1560-2017Industry StandardThermotatie FaucetsQB/T 2806-2017Industry StandardThermostatic showerQB/T 5418-2019Industry StandardCartridges for FaucetQB/5524-2020Industry StandardKitchen and Sanitary Ware Fittings-Check ValveQB/T5740-2022Industry StandardSmart Faucets
T/CBMF24-2018/T/CBCSA2-2018
Group StandardGeneral Principles for Upgrade and Innovation Evaluation ofConsumer Goods
T/CNLIC0012-2020Group StandardExtractable Nozzle for Kitchen and Bathroom FaucetT/CBCSA25-2020Group StandardFoam Makers for FaucetT/CBCSA43-2021Group Standard
Promotion of Industry Exchange
Industry CooperationSolex values common growth with the industry, actively involves in the formulation of industry standards, participates in industry exhibitions and exchange activities, shares advanced knowledge and experience, and establishes goodcooperative relationships with upstream and downstream enterprises in the industrial chain to jointly advance industry development.
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
Formulation of industry standardsFormulation of industry standards
In May 2023, the 27th CBE China Beauty Expo was held at theShanghai New International Expo Center (Pudong). The Companydisplayed a range of R&D achievements in beauty and health,including commercial skin analyzers, nursing RF instruments, AIhair removal devices, dual-use devices for spot lightening and skinrejuvenation, and ultrasonic essence atomizers. Additionally, it also setup an immersive interactive experience area to share new technologiesand achievements with peers and customers.
In June 2023, the 27th China International Kitchen & Bath Facilities Exhibition wasopened at the Shanghai New International Expo Center. Solex and its subsidiary Bestterjointly participated, and set up three kitchen & bath exhibition halls for Solex showers,faucets, and Bestter’s smart toilets. Around the concept of “big health”, these hallsperfectly matched the “integrated, embedded, green, interconnected, intelligent, healthy,and innovative” theme, attracting thousands of visitors.
Participate in the 27th CEB China Beauty ExpoParticipate in the 27th Shanghai Kitchen & Bath China Fair
The Company’s exhibition hall at the 27th Shanghai Kitchen & Bath China FairThe Company’s booth at the 27th CBE China Beauty Expo
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
Solex has established various forms of cooperation with many universities, including joint training,collaborative R&D, topic cooperation, internships and practical training, so as to achieve resourcesharing and complementary advantages between universities and enterprises, promote the industry-university-research integration, and contribute to technological innovation and industrial upgrading.
To further deepen university-enterprise cooperation and industry-educationintegration, the Company and Huaqiao University held a “ScholarshipDonation Ceremony and Joint Research Center Opening Ceremony”in November 2023. Through joint training of postdoctoral fellows, andintegration of resources from universities, enterprises and verticalapplication industry partners, the two sides aim to create a localized andspecialized rst-class “AI + Health” industry-university-research innovationinstitution. With a focus on the digital economy construction needs of Fujian,and by adhering to an open and joint innovation model between universitiesand enterprises, they are committed to building the Smart Health JointResearch Center into an inuential “AI + Health” integration and innovationplatform in the industry. Additionally, the donation provided by the Companyto Huaqiao University was used to establish the “Industry-EducationIntegration Scholarship of Huaqiao University and Solex”, with the aim ofsupporting the education of Huaqiao University.
Join hands with Huaqiao University to explore “AI+Health”
University - Enterprise Cooperation OpeningCeremony
University - enterprise cooperationforum
Students from universities were visiting the enterprise
June 2023
July 2023August 2023
November 2023
December 2023
June 2023
November 2023
December 2023
The Company conducted unied promotion for the students majoring in numericalcontrol of Xiamen Ocean Vocational College and invited them to visit the exhibitionhall of the Company
The Company conducted unied promotion for the students majoring in mechanicaland electrical engineering of Xiamen University to attend the theme lecture held bythe Company and invited them to visit the exhibition hall of the Company
The Company invited the students majoring in water engineering of XiamenUniversity of Technology to visit the exhibition hall and production workshop, andconducted unied promotion for them
Students majoring in materials formation and control of Xiamen University ofTechnology visited the production workshop and exhibition hall of the Company andattended a career planning lecture held by the Company
Teachers from the Language and Literature College of South China Universityheld an exchange meeting with the Company and visited the exhibition hall of theCompany
Students majoring in industrial design of Huaqiao University attended an industrialdesign lecture held by the Company and visited the production workshop andexhibition hall of the Company
Overseas study groups from Huaqiao University visited the exhibition hall of theCompany
Students from various majors of Wenshan University attended a career planninglecture held by the Company and visited the production workshop and exhibition hallof the Company
University - Enterprise Cooperation
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
? Manufacturing quality control: Continuously control and improve quality-related indicatorssuch as sampling pass rate and quality losses? Parts manufacturing: Introduce automated equipment to improve production quality,such as automatic drawing, automatic polishing, injection molding automation, in-moldmonitoring systems, and other automated intelligent equipment; introduce MES informationsystems to enhance quality reliability, handle abnormal work orders, and improve datainformatization
? Assembly: Continuously improve processes to enhance production quality, such asstandardization of tooling design, and removal of residual water
? Change of management: Establish the change implementation process regarding a change
in product processes, tooling, equipment, conguration, and structure
? Customer demand: After the Sales Department and Quality
department receive the Customer Demand Information Form, theafter-sales quality personnel confirm customer needs, includingproduct model, quality requirements, packaging methods, productconfigurations, etc., and the personnel of the data group convertthem into relevant SAP data and publish them in digital and writtendocuments.? Quality complaints from customers: Confirm with customers thedetails of product defects, shipment date of defective products,order number, and quantity, etc. After-sales qualitiy personnel areresponsible for summarizing customer feedback and submitting it tothe management review meetings.
Product Manufacturing Process Quality
Management
Marketing Service Process Quality
Management
Solex always upholds the quality policy of “customerfocus, continuous improvement; quality rst, pursuit ofexcellence”, and exercises strict quality control in allaspects such as product R&D, material procurement,production and product testing, thereby establishinga good brand image. The Company has formulatedquality control procedures, including the IncomingInspection and Test Control Procedures, ProductionManagement Control Procedures, Process Inspectionand Test Control Procedures, and Final Inspectionand Test Control Procedures, promotes and continuesto implement the requirements of the qualitymanagement system, executes a comprehensivequality management system covering all employeesand processes throughout the Company, so as tofurther enhance its product quality.
? Product input: Clarify the product development cycle and quality requirements, and convert
them into quality standards. Key quality elements include appearance, performance andspecial requirements.? Design and review: Conduct design reviews to ensure design quality? Product development and validation: Conduct type tests on parts and products to completethe reliability verication of processes and products
? Product output and standardization: Review trial assembly analysis reports, trial productionanalysis reports and type inspection test results
? Transition into mass production: Establish key control points, such as a zero complaint ratefor new products and 90% of pass rate for the rst order
? New suppliers: The development of new suppliers requires sampletrials, and the Quality Department, R&D Departments and otherdepartments conduct on-site assessments to comprehensivelyevaluate the suppliers’ quality performance.? Long-term cooperative suppliers: Clarify the basic qualityrequirements for the cooperation between the two sides, thehandling of non-conforming products, and other matters, conduct on-site quality assessments and training from time to time to enhancethe suppliers’ supply quality
Procurement Process Quality
ManagementProduct Design and Development Quality
Management
Whole-process quality management system of the CompanyO?er of Top-notch Customer ServiceQuality Management
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The Company identies di?erent quality requirements of stakeholders such as customers, suppliers, partners, and internal related parties through the whole-process quality management, and enhances its testing systemcapabilities, including personnel inspection skills, equipment testing capabilities, laboratory testing capabilities, and certication capabilities.
During the reporting period, the Company conducted two QC skillassessment tests to enhance the work skills of personnel involved inquality control, stimulate the learning enthusiasm of personnel involvedin quality control, and improve the overall quality management level ofthe Company.
Skill assessment tests
During the reporting period, the Company completed 77 sessions ofinternal quality improvement training and 10 sessions of external qualityimprovement training, focusing on quality management and professionalskill enhancement. What’s more, it conducted multiple sessions oftraining covering the operation and use of inspection tools, the conceptsand certication requirements of the quality management system, andthe discussions on common customer complaints regarding specificproducts, etc., so as to enhance the quality management capabilitiesand inspection skills of employees.
Internal quality management training
In March 2023, the Company organized a competition for quality skillsand knowledge at the management level to promote basic qualityknowledge, improve the professional skills of key quality positions, andenhance the enthusiasm of employees in various positions for qualityimprovement. The competition was divided into four parts: written test,practical exercises, quick-response questions, and award ceremony,with the winners being awarded at the end of the competition.
Quality skills competition of the Company
Improvement of personal inspection skills
Quality skill competitionQuality management training
Contents of skill assessment tests
BasicinspectionskillsProcessreviewskillsMasteryskills ofstandards
Measuringtool use
skills
SAPapplicationskills
Visualinspection
skills
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
Enhancement of equipment testing capabilities
During the reporting period, the Company made breakthroughs andinnovations in injection molding quality control measurement, reducingmeasurement time, increasing productivity, ensuring precise sizemeasurement, reducing labor costs, and enhancing its modern quality image.With the help of new measuring tools, the Company’s quality managementpersonnel no longer need to position the measured parts manually, and thesystem automatically makes determination and remains una?ected by the skillprociency of operators. The whole measuring process is simple, fast, andaccurate, reducing the waiting time for the measuring machine, eliminatingmeasurement errors caused by human factors, and the measurement data atthe end of the process is automatically saved.
Innovation of the instrument measurement size
During the reporting period, the Company gradually promoted visualmonitoring of the production process and post-production visualidentication and screening. Unmanned monitoring work can be achievedby adding in-mold monitors. Cameras continuously capture images of theproduction process inside the mold for monitoring and verification. Theprocess involves three rounds of image capture and verification. If anyabnormality is detected during the process, the control molding machine isprohibited from closing the mold and issues an abnormality alarm, therebyensuring the stability of the process of parts production.The precision detection can identify defects with an accuracy of 0.01mmand the judgment and processing time of 0.01 seconds, thereby achievingstable process production quality, reducing labor costs, minimizing scrapgenerated by abnormalities and customer complaints.
In-mold monitors at the injection molding plant
Automated measurementCamera monitor
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
Enhancement of laboratory testing capabilities:
Enhancement of certication capabilities
The Company has a national-level standardlaboratory center, and introduces advancedinternational and domestic equipment testingto conduct repeated tests on a series of qualityrequirements for product waterproof performance,structural strength, performance life, electricalsafety, environmental tolerance, and transportationsafety, so as to ensure that product quality achievesthe advanced level.
The Company has successfully obtained morethan 20 certications from many countries in NorthAmerica, Europe, and Australia for more than 400products such as showers, faucets, hoses andARCs, providing high-quality services for customersto expand their products globally. During thereporting period, the Company and its subsidiariesobtained ISO 9001 Quality Management SystemCertication, and the Company obtained ISO 13485Medical Device Quality Management SystemCertication.
实验室测试能力
The Company obtained the ISO 17025Testing and Calibration LaboratoryCapability Certication
The Company obtained ISO 9001Certicationa
The Company obtained ISO 13485Certication
The subsidiary Zhangzhou Solex obtainedISO 9001 Certication
CNAS Laboratory CenterCertication
Surface Treatment
Testing
PerformanceTesting
Comprehensive
Testing
Waterproof
Testing
PartsTesting
LifeTesting
UniversalTestingTransportationVibrationTestingMechanicalPerformanceTestingTemperatureTestingSafetyTesting
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
With the “customer-oriented” service philosophy, Solexis willing to listen to and understands the real needs ofcustomers, carries out all of its business activities fullyfrom the perspective of customers. It also keeps makinginnovation and improvement to meet the customers’current and future demand for products, and sparesno effort to go beyond customer expectations. Thesee?orts enable Solex to swiftly address customer issues,stand in its customers’ shoes, and always provide high-quality services for customers.
Customer-orientedO?er ValuableProduct SolutionsContact aProfessional TeamStabilize ContactWindowTransparent andSincere
The Company maintains open communication and information sharing with customers, swiftlyadvances the updating and iteration of its technology and products by fully utilizing R&Ddatabase resources and technological innovation capabilities, and continuously recommendsto customers high-value-added technologies or products that meet market demand hotspots toachieve win-win results, thereby e?ectively enhancing the stickiness of downstream customers.The Company has established a unied customer resource sharing platform, where customerexpansion of existing or entirely new categories can fully rely on existing customer resources,and cross-coverage of di?erent categories of customer groups can generate synergies.
The Company and the customer plan to jointly develop a sodasystem faucet with the Company’s distinctive quantitative functionfor high-end clients. In the development process, the projectencountered difficulties as the mass production of the supportarm could not meet the pass yield requirements. The main reasonwas that the original process was stainless steel precision casting,which resulted in a high defect rate because of the product’s shapeand size. After close communication between the Company andthe customer regarding the R&D process, the Company urgentlyswitched to the stamping process, and the product finally metthe pass yield requirements. The customer was satised with theCompany’s attitude to solve the problem, and the newly improvedproduct had no issues caused by the changes and has beensteadily shipped in batches.
Cooperate with the customer to develop products
O?er Valuable Product Solutions
Continuously provide innovative and valuable product solutions forcustomers base on the life pain points and market trends
Customer-orientedBe guided by customer demand, respond quickly and correctly to meetcustomer needs, and create value for customersContact a Professional TeamA mature team will provide professional services and suggestions, andbring e?cient and pleasant cooperation experience to customersStabilize Contact Window
Familiar with customers, stabilize contact window and avoid confusionTransparent and SincereTreat customers with honesty and transparency without deception
ServicePhilosophy
Customer service philosophy
Customer service system
Soda boiling water drinking faucet
Customer services
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The Company has been cooperating with a shower brand customer since 2005,and provides this customer with showers, including design and production.As one of core suppliers of customers, this Company has established goodcooperation with customers.NPD Model
Cooperation with the customer
The Company provides customers with thoughtful beauty experience services.Before the experience, it provides makeup removing and cleansing products,introduces professional instruments, explains health status assessment reports,and receives suggestions for areas and solutions to be improved. During theexperience, it provides tracking and guidance services, technical services,reminders on important points, and auxiliary supplies such as gels, creams, andhair regrowth products. After the experience, it provides post-care products likehydrating masks, lotions, and skincare creams.At the end of the experience, the Company provides users with a completeexperience report, comparing data before and after the experience and o?eringspecic beauty care solutions.
Customer product experience
The Company has established the Identication and Traceability ControlProcedures to manage products throughout their lifecycle, and ensure thatthe quality status of products at all phases from entry of raw materials todelivery of products is identied and traceable. In the incoming phase, alldirectly purchased/outsourced and customer-supplied materials must usethe Company’s unified QR code labels, specifying supplier information,order number, parts information, production date. This facilitates internaltracking and traceability of raw materials in case of customer complaints.Specic product packaging boxes of the Company have traceable labels,specifying production date and other information, which are synchronizedinto the SAP management system, so as to trace production batch ofparts and provide customers with complete, clear and correct productmanufacturing information.
Leverage the Company’s coreinnovation competitivenessto provide innovative productsolutions, and cooperate withcustomers to complete thedevelopment and launch ofnew products
Stabilize the productionsupply chain to ensure on-time delivery of products andmeet market-side inventoryneeds of customers
Stabilize highly intelligentproduction capabilities toensure product quality, enhanceconsumer satisfaction, andreduce complaint rates
? Actively respond to customerneeds in daily work, andprovide excellent services? Make improvement based onthe relevant issues identifiedin the Annual Review
Quality Management
Supply Chain Management Daily Management
Beauty testing services
Supplier identication of raw materials
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
Customer complaint ow chartCustomer satisfaction survey
Three-year customer satisfaction results
The Company has formulated customer after-sales management systems such as the Customer Complaint Handling Operation Guide, andCustomer Satisfaction Survey Evaluation Procedures to understand current and future needs and expectations of customers regarding servicequality, improve the quality of complaint handling, and continuously enhance customer satisfaction.
Collect customer complaints and
feedbackConrm feedback contentHold responsible units and relevant
personnel accountable for thecustomer complaint and feedback form
Conrm with customers whether
supply can continue, and
temporary supply standardsFeed back temporary improvement
measures to customersOrganize meetings to review the
reasons
Validate reasons throughnecessary tests or experimentsComplete the corrective actionreport within 7 working days
Within the 1st working dayWithin the 2nd working dayWithin the 3rd working dayWithin the 7th working day
2021
85.55
%
2022
78.41
%
2023
83.4
%
? Performance? Appearance? Designcapability? Accuracy oftechnical data? Packaging
? Communicationand cooperationwith customers? Timelinessof complainthandling? E?ectiveness ofsample shipping
? Timeliness ofdelivery
? Reliability ofdelivery? Lead time ofproduction
Quality Services Delivery
The Company has established the Recall Operation Guide andMedical Device Recall Control Procedures to strictly manageproduct recall, ensure that product recall is under control, andguarantee the safety of users.
? Complete the Product RecallRequest Form? Fill in the customer name, productname, quantity, and reasons forproduct recall
? Organize relevant departmentsand personnel to analyze the recallreasons for products with normalquality? Analyze the reasons for productswith quality defects and givehandling suggestions
? Hold a management reviewmeeting if the recall quantityis greater than or equal to 200pieces
Product recall process
Salespersonof MarketingDepartment
Manager ofMarketingDepartmentQualityManagementDepartment
General Manager
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
Solex is committed to building a responsible supply chain, continuouslyoptimizing communication with suppliers, improving quality of deliveryby suppliers, and working with suppliers to create a win-win cooperationrelationship. The Company mainly purchases raw materials andcomponents, sets safety stock levels for raw materials, and has formulateda complete management system and standard system. It strictlyimplements the mechanism for supplier introduction and continuousevaluation, and signs the Basic Supply Contract framework with qualiedsuppliers to dene the rights and obligations of the Parties.
The Company has formulated supplier management systemsincluding the Procurement Management Control Procedures, NewProduct Development and Procurement Operation Procedures,and Business Partner Development and Management Rules, andput a sound supplier management system in place to standardizesupplier selection, access, evaluation and elimination mechanisms,and stabilize the supply of materials to the Company.
During the reporting period, the Companyconducted supplier assessmentswith a coverage rate of
%
a qualication rate of
%
202320222021Overallsuppliers
Number ofsuppliers
1,3381,3331,324
Suppliercategorymanagement
Raw materialsuppliers
144142139Equipmentsuppliers
180176168Non-productionsuppliers
211207200Production
suppliers
783790801Administrativeand logistical
suppliers
201816
Stable Procurement Supply
Supplier Management
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The Company identies and controls quality or business risks inthe supply chain through regular supplier performance evaluations,audits, or otherwise. The Company o?ers coaching and training tosuppliers whose assessment results are unqualied, so as to helpthem improve production and operation. If a supplier’s assessmentscore is at level D or below for 3 consecutive months, and thecoaching offered by the Company fails, or if there is a seriousviolation of contractual terms or the Company’s regulations, thenthe Company will handle unresolved orders, returns, payments,and other matters, and remove the supplier from the existingsupplier database.Contact
PreliminaryEvaluation on
Suppliers
On-siteEvaluation onSuppliers
SampleConrmation
Supplier
Search/InformationCollection
? Collect the information about potential suppliers through peer recommendation,
internet search, industrial concentration areas or otherwise based on thedevelopment service needs of the Company
? Collect information about suppliers with performance capabilities, select targetsuppliers, and contact them
? Contact target suppliers, understand their cooperation willingness, main business,whether the types of products match the procurement needs of the Company, andwhether the quality system or nancial position is good, and conduct preliminaryscreening
? Suppliers truthfully fill in relevant information such as company profiles,
organization structures, equipment status, logistics conditions, qualitymanagement, environment and safety, and intellectual property? Procurement and development: Evaluate supply capabilities, supply chainsystems, customer service capabilities, and safety and compliance of suppliers
? R&D technology: Evaluate development capabilities, technical capabilities,equipment capabilities, and process capabilities of suppliers? Quality: Evaluate quality management structures, quality management systems,equipment, and other relevant conditions of suppliers? Suppliers make samples based on the drawings provided by the procurement anddevelopment department, and provide corresponding samples for review? The Company evaluates the functionality and quality of samples? Officially place purchase orders if the requirements are met; inform suppliers
to make corresponding corrections, discuss product design structures,process technology and performance, and negotiate for the best solution if therequirements are not met
Supplier screening process
CategoryWeightScoring Rules
Quality
Incoming qualication rate 30%
A: 90-100 ExcellentB: 80-90 GoodC: 70-80 To be correctedD: 60-70 To be rectiedDisconnection andcustomer complaints
30%Delivery period 20%Development of new products 20%
Month assessment scoring criteria
The Company was conducting appearance training for suppliersThe Company awardedexcellent suppliers
Continuousoptimization
of suppliermanagement
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The Company promotes the sustainable procurement, specifies anti-commercial briberyclauses in contracts signed with suppliers, improves the supervision mechanism forcommercial cooperation constraints, enhances the two sides’ awareness of compliancewith law and integrity in operation, and creates a legal, honest, clean, and e?cient workenvironment to safeguard the legitimate rights and interests of the two sides in cooperation.The Company requests suppliers to comply with the laws and regulations on environmentaland occupational health and safety in operation, gives priority to the suppliers that havepassed ISO 14001 Environmental Management System Certification and ISO 45001Occupational Health and Safety Management System Certication, and conducts on-siteevaluations on suppliers’ environmental and safety behaviors from time to time.The Company stipulates the suppliers’ business ethics, fair competition, anti-corruption,conflicts of interest, human rights, prohibition of child labor and forced labor, freedom ofassociation and collective bargaining, anti-discrimination and harassment, sustainableproducts, conict minerals, employee health and safety, environment, and quality, amongothers in the Code of Conduct for Suppliers, and request suppliers to sign the Code ofConduct for Suppliers.
Percentage of suppliers who havesigned the Code of Conduct forSuppliers
Number of suppliers who have conductedenvironmental impact assessments289289
Percentage of the Company’sinternal procurement sta? whohave passed the sustainableprocurement trainingPercentage of suppliers who havesigned agreements containing theenvironment and labor requirementsclause
Number of suppliers who have conductedsocial impact assessments
%
%
%
During the reporting period,Transparent and Sustainable Procurement
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
With great importance to employee management and care, the Company is committed to providing a good work environment and broad careerpromotion opportunities for employees. It advocates democratic management, values employees’ rights to participate in decision-making andmanagement, focuses on employees’ occupational health and work safety, provides regular safety training and health examinations to ensurephysical and mental health of employees.
With the people-oriented management philosophy, the Company focuses on individual di?erences among employees, and has formulated scienticand reasonable management strategies. In order to comprehensively standardize key management processes such as employee recruitment,attendance, training, benets, rewards, and punishments, the Company has formulated the Employee Handbook and Human Resources ManagementSystem to ensure that all management behaviors are governed by rules and provide employees with clear code of conduct. Meanwhile, this alsosafeguards the legitimate rights and interests of employees and promote the stable and healthy development of the Company.
During the reporting period, the Talent Office of Xiaman MunicipalCommittee, Xiamen Torch High-tech Zone Management Committee, andXiamen Human Resources and Social Security Bureau jointly conductedtalent enterprise evaluations, and the Company was named one of theTop 10 Growth Talent Enterprises in Xiamen, reecting the e?orts of theCompany in talent introduction and cultivation. High-quality talents arethe driving force for enterprise development. The Company will continueto deepen talent management reforms, improve the quality of talents,and optimize the allocation of talent resources to vigorously promote thehealthy development of the Company.
The Company was named as one of Top 10 Growth Talent Enterprises
Certicate of Top 10 Growth Talent Enterprises
Common Growth with Employees
Employee Management
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
Adhering to the principle of transparent and open decision-making, the Company encourages employees to actively make suggestions andparticipate in the operation and management of the Company, and focuses on improving employee communication and management mechanismsto build diverse communication channels. Additionally, it regularly holds the Congresses of Workers and Sta?. At the Congresses, it earnestly listensto the opinions and suggestions of employees, promptly responds to and address their demands, safeguards their rights to participate in democraticmanagement, so as to enhance their sense of belonging and involvement.
In April 2023, Zhangzhou Solex Smart Home Co., Ltd. held the Third Congress of the First Trade Union, at which the important documents, includingthe Rewards and Punishments Management System, Human Resources Management System and Compilation of Safety and Health ManagementSystems, were reviewed, and the proposals regarding engineering technology, production and operation, personnel and labor, living benets, andoccupational health were discussed and explained. In addition, the Congress set up a Q&A session to fully listen to employees’ opinions and promotethe continuous improvement and development of the Company.
Congress of Workers and Sta?
To strengthen communication between employees and management,the Company has set up a CEO mailbox on the enterprise WeChatplatform to collect the opinions, suggestions, complaints, or feedbackof employees, and help the management to understand realthoughts and needs of employees. All letters received are carefullyreviewed, categorized and processed to ensure that the opinionsand suggestions of employees are responded to in a timely andreasonable manner, and confidentiality measures are taken againstthe information of employees during the processing.
Set up the CEO mailbox
Congress of Workers and Sta? and Congress of Trade Union
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The Company strictly complies with the LaborLaw of the People’s Republic of China, LaborContract Law of the People’s Republic of Chinaand other laws and regulations, signs the laborcontract with each employee, ensures thatemployees, regardless of their ethnic group, race,sex, or religious belief, shall not be discriminatedagainst in employment, and creates a diverse,inclusive, and harmonious work environment.
the Company employeddisabled persons
During the reporting period
veterans
By gender
Male
Female2,772
1,916
（Person）By age
30-50
Below 30
Above 50
3,183
1,232
（Person）
By employment type（Person）
Part-time
Full-time
4,624By rank（Person）
Middlemanagement
Juniormanagement
Seniormanagement
人
By education（Person）Belowbachelor
Generalemployee
Master and above
Bachelor
3,760
4,355
Total employees
4,688Person
Number ofemployees研发部门人员情况
研发人员总数
Note: Part-time employees refer to employees who have signed service contracts.
Employee Recruitment
Person
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
Adhering to the principles of fair, just, and open talent recruitment, theCompany has formulated scientific recruitment processes and selectioncriteria to comprehensively evaluate the professional skills, comprehensivequalities, and development potential of candidates. The Company activelyattracts outstanding talents both inside and outside the industry throughmulti-channel and multi-form recruitment activities, and ensures that thetalents introduced t with its strategies and business development to build ahigh-quality and e?cient talent team.
To meet the development needs of its strategic planning, the Company has built a sound hierarchical talent system, accurately identiesand cultivates employees with potential, supplements high-quality talents that meet strategic planning requirements, assures the su?cienttalent reserves at various stages of development, further optimizes the talent structure, and enhances its overall competitiveness.
A hierarchical talent systemStrategic PlanningEnterprise Planning
HR PlanningConstruction of Qualication System
Analysis of Personnel Structure,
Quantity and Capability Gaps
Talent Recruitment/Headhunting Mechanism
Talent Selection MechanismJob ReportingOn-the-job CoachO?-the-job Training
360°-degreeEvaluation
Employee Competency RequirementsCertication and Assessment ofQualication LevelsPersonnel Structure, Quantity andCapability Requirements
Performance Management
System
Talent Demand
Talent Supply
Talent Training PlanTalent Training Mechanism
Talent Di?erentiationMechanism
Yes
No
Talent PoolTalent DevelopmentIncentive Mechanism
Internal Training
Recommendationby Companies and
Industry Insiders
On-site TalentMarket andTalent Website
Colleges andUniversities
HeadhuntingCompanies
Labor Marketand Employment
CentersFormalEmploymentAgencies
Newspapers and
Periodicals
Multi-channel
recruitmentinformation
release
Cultivation and Promotion
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The Company is committed to providing employees withcomprehensive career development opportunities, assistingemployees in working out personal growth plans, andclarifying their career development direction and goals.By implementing systematic training plans and adoptingscientific training assessment methods, the Companycomprehensively improves the professional skills andcomprehensive qualities of employees, and promotesrapid growth of talents. To attract and retain outstandingtalents in the industry, the Company has established openand transparent promotion channels to ensure that everyemployee has fair promotion opportunities.
To standardize and promote the continuous and efficient training, the Company has formulated the Training Management System, Internal TrainerManagement System, Outbound Training Management System, and Solex Middle and Senior Management Teaching Management Plan. By conductingonline and o?ine training in a planned way, the Company enhances the professional knowledge of employees, strengthens their job competency, combinestheir personal career development with the Company’s strategic goals, and helps the common growth between the Company and employees.
the Company provideda total of
sessions of training
with a total training duration of
hours21,244.5
an average duration of
hours per person
4.5
employees participating intraining assessments8,005
a pass rate of
%
During the reporting period
Dual-channel career development
Senior O?cerManagerSection Chief
HeadTeam Leader
Chief EngineerSenior EngineerAdvanced EngineerIntermediate Engineer
Junior Engineer
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
PlanFormulationTrainingPurposes
PersonnelAnalysis
CourseSurvey
Determinationof Lecturers
ContentDesign
PlaceSelectio
Scheduling
PreparationandOrganization
LevelContents of assessmentAssessment approachAssessment timeAssessment subject
Response assessment
Employee satisfaction with trainingcourses, and trainers, etc.
Questionnaires, interviews, discussionsAfter the courses
Training department/trainingorganizerLearning assessment
Trainees’ mastery of the trainingcontents/what they learned fromthe training program
Questioning, written tests, oral tests,personal experiences
After the courses, and during thecourses
Training departmentBehavior assessment
Whether the trainees’ behaviors arechanged as a result of the training
Questionnaires, observationperformance evaluation, 360-degreeevaluation
After three months or six monthsDirect head
Result assessment
Impact of the training on theCompany’s performance/whetherthe changes in behaviors have apositive impact on the organization
Accident rate, quality, production rate,wastage rate, morale, cost, revenue
After six months or one yearEnterprise
Training assessment methods
Formulation of training plans
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
High-potentialTalent TrainingCamp
Focus on general skills with basic management knowledge as supplementary, enhance jobcompetence of trainees, and reserve talents for the grassroots and middle management teamsin advance.
JuniorManagementTraining Camp
Provide job skills training on the professional side, and provide management knowledgerequired by production departments on the managerial side. Through this training, team leaderscan coordinate and solve specic problems encountered by employees in their work, assist andsupport superiors, collaborate with peers, and guide and supervise subordinates.
Qingsong TrainingCamp
Enhance the job competence of trainees, identify high-potential individuals, and reserve talentsfor the meddle management team through training for talents at the level of section chief orabove
Training for SeniorManagement
Focus on enterprise operation management and building of the hierarchical talent system, includingbut not limited to role cognition, coaching techniques, effective empowerment, organizationalcapabilities, entrepreneurial spirit, enterprise culture management, and leadership skills.
Jinsong TrainingCamp
Unify the direction, clarify strategic goals of the Company; learn and master the managementsystems of the Company, and fulfill management responsibilities; systematically learn non-personnel and non-nancial knowledge to master the team goals and team building knowledgefrom the perspective of finance and human resources; systematically learn managementknowledge of team building, grasp the key points of e?cient team building; improve departmentalperformance and management level from actual work with the help of senior o?cers.
The Company has built a cloud learning platform to optimize the learning experienceand e?ciency of employees and facilitate their learning at any time and at any place.This platform gathers diverse learning materials, at which employees can freelychoose courses for learning based on their work needs and personal interests. Itenriches the learning paths of employees and provides new and powerful support forthe knowledge management and talent cultivation of the Company.
SOLEX E-learning platform
SOLEX E-learning platform
Class-based hierarchical talent training
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The Company is committed to building acomprehensive and high-quality welfare system, andproviding employees with competitive salaries andbenets. In addition to basic salaries, it stimulates thelong-term work motivation of employees by grantingequity incentives. It also provides a comprehensivesocial security system to ensure the basic livingstandards of employees. Further, the Companyhighly values the physical and mental health ofemployees, and provides them with regular holidaysand occupational health examinations to enhancetheir sense of happiness and security, stimulate theirenthusiasm and creativity, and jointly promote thesustainable development of the Company.
To ensure that effective implementation andmanagement of employee benets, the Company hasestablished and improved multiple systems. To bespecic, the Solex Parental Leave Plan clearly denesthe vacation rights and interests of employees duringparental leave; the Solex Housing Plan species thatthe eligible employees will be entitled to interest-freeloans to alleviate their economic pressure; the SolexEmployee Mutual-aid Fund Management Measuresstipulates that the Company will provide timelyfinancial assistance to the employees encounteringspecial di?culties or disabled ones. The improvementof supplementary welfare systems resolves theconcerns of employees, fully safeguarding andenhancing their benets.
Parental
Leave
MutualAid Fund
HousingProgram
Supplementary welfare
Social InsuranceHousing Provident
Funds
Statutory HolidaysMarriage LeaveBereavement
LeaveMaternity LeaveAnnual leaveSick Leave Work-related
Injury Leave
CanteenBenetsNight ShiftAllowanceTravelAllowanceCommunication
SubsidyTravelBenetsSummer CoolingAllowanceProtectiveArticles
ProposalImprovement Awards
Annual OutstandingEmployee Award
PhysicalExamination
Trade UnionBenets
Welfare systemWelfare Activities
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
With great importance to the well-being of employees, the Company regularly plans and organizes various cultural and sports activities as well as holiday celebrations, and builds a self-display platform for employees to promotetheir interaction and communication. Meanwhile, the Company gives special condolences and care to injured employees, with the aim of enhancing their well-being, strengthening team cohesion, and guiding them to pursue ahealthy and sustainable quality of life.
During the reporting period, the Company organized a fun sports meet,integrating traditional sports with fun elements, and set up challengingactivities such as relay races and target throwing. Employees activelyparticipated in various items, not only exercising their bodies, enhancingmutual understanding and trust in a relaxing and pleasant atmosphere,e?ectively promoting communication and collaboration among teams, butalso demonstrating unlimited vitality and creativity of teams.
Organize the fun sports meet
On the Mid-Autumn Festival, the trade union of the Company organized mooncakegambling, and employees actively participated. In this activity, employees enjoyed thepleasure of throwing dice and competing for prizes, experienced the charm of traditionalculture, and felt the warmth of Mid-Autumn reunion. It not only brought joy to employeesbut also deepened their understanding and respect for traditional culture, injecting newvitality into the cultural construction of the Company.
The trade union organized mooncake gambling on the Mid-Autumn Festival
During the reporting period, the Company has alwayspaid attention to employee health. For injured employees,the Company swiftly took actions, and promptly sentrepresentatives to visit them in hospital with fresh fruits,expressing condolences on behalf of all employees, andconveying the care and blessings of the Company. Thisdemonstrated the humanistic care of the Company.
Care about injured employees
Scene of the fun sports meetingMooncake gambling on the Mid-Autumn FestivalRepresentatives were visiting an injured employee
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
With great importance to the occupational health and safetyof employees, the Company strictly complies with theWork Safety Law of the People’s Republic of China, FireProtection Law of the People’s Republic of China, Law ofthe People’s Republic of China on Prevention and Controlof Occupational Diseases and other laws and regulations,has formulated dozens of systems including the HiddenDanger Investigation and Management System, FireManagement Measures, Major Fire Accident ManagementSystem, Warehousing Management Measures, andManagement System for Occupational Disease ProtectionArticles, and established a Safety Production Committeeto dene safety responsibilities at all levels and implementsafety management into various operational activities.By establishing a sound occupational health and safetymanagement system, the Company has obtained ISO45001 and OHSAS 18001 Occupational Health and SafetyManagement System Certications.
Organization chart of the Safety Production Committee
ISO 45001 OccupationalHealth and SafetyManagement System(Solex)
ISO 45001 OccupationalHealth and SafetyManagement System(Zhangzhou Solex)
CEO O?ce
Shower BusinessUnit
Beauty and HealthBusiness Unit
ElectronicsBusiness Unit
EnvironmentalService Center
Safety Resource
Department
Safety EngineerTechnical Engineer
Safety Standard
Engineer
QualityDepartment
LogisticsDepartment
Assembly
PlantHOSESurface TreatmentPlant
Injection MoldingPlantMixed Color Plant
ProductionDepartment
ProductionDepartment
EnvironmentalDepartment
IT DepartmentHR DepartmentFinancial Center
Administrative ServiceCenterSupply Chain
R&DDepartment
SalesDepartment
Note: Haicang Park
Occupational Health
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The safety management informatization is a key means for the Company to improve the safetymanagement levels and enhance risk prevention capabilities. By establishing a hidden dangerinvestigation and analysis system, safety document management system, and safety training system,the Company has achieved real-time monitoring, risk warning, and data analysis in the whole processof safety production. With these e?orts, the Company has enhanced the accuracy and timeliness ofsafety management and built a comprehensive and e?cient safety management system.
The Company has adopted comprehensive and systematic measures to build asolid defense line of work safety. Specically, it regularly conducts various safetyactivities and re drills to deepen employees’ understanding of safety operationprocedures, familiarize them with emergency response processes, improve theirrisk identication and response capabilities, and enhance their safety awarenessand self-protection capabilities.
During the reporting period, the Company carried out a theme activity titled“Everyone Knows Safety, and Everyone Can Respond to Emergency”, includingvarious kinds of activities such as award-wining quiz, explanation of emergencyprocess, wearing of emergency equipment, and anti-fraud quiz. Through acombination of theory and practice, the Company helped employees understandeach aspect of emergency response, grasp the core points of emergencyresponse, and improve their practical operation capabilities.
Safety-themed activity
Safety-themed Activity
Hidden danger investigation statistics and analysis interface display (Solex)
Hidden danger investigation statistics and analysis interface display (Zhangzhou Solex)
the Company hadre and explosion accidents
equipment injury accidents
casualties due to electric shock
cases of occupational diseasesamong employees
During the reporting period
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
To ensure the occupational health and safety of employees, theCompany has established a comprehensive mental health supportsystem. By setting up a mental health counseling room and providingprofessional psychological assessment, counseling, and educationaltraining services, the Company helps employees effectively copewith work pressure and enhance their psychological adjustmentcapabilities. Meanwhile, the Company carries out a series of activitiesfor occupational disease prevention to promote the standardizationand scientic development of its occupational health management.
During the reporting period, the Company conducted publicity of the Law on Prevention and Control of OccupationalDiseases in the form of a lecture to popularize relevant laws and regulations on prevention and control of occupationaldiseases to all employees, emphasize the importance of occupational disease prevention, and guide everyone to establishcorrect concepts of occupational health. Through this lecture, employees gained a deeper understanding of occupationaldiseases, learned more methods to prevent them, and enhanced their awareness of occupational health.
Publicize the Law on the Prevention and Control of Occupational Diseases
In December 2023, the Company conducted a fire drill,covering employee evacuation, indoor exercises, and firefighting simulations. It is designed to comprehensivelyenhance employees’ safety awareness and emergencyresponse capabilities to ensure that they can respondto safety accidents, if any, in a quick, orderly, timely, andeffective manner. Through this drill, employees deeplyrealized the importance of safety hazard prevention and fullyunderstood their responsibility for re safety.
Conduct the re drill
Indoor re drill
Psychological counseling roomPublicize the Law on the Prevention and Control of Occupational Diseases
Fire ghting exercise
Outdoor evacuation
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The Company fully implements the national strategy of strengthening the country through quality improvement, and spares no e?ort to drive its high-quality development. It fullls corporate social responsibility with a high sense ofresponsibility and mission, actively participates in various social welfare activities, gives back to the society and benets the people with practical actions, contributing to a harmonious society and sustainable development.
In October 2023, the Company sent representatives to visit the GunongFarm Liming Zhuqu Elderly Association, talk with the elderly members,learn about their living and health conditions, and present them withsouvenirs. This activity strengthens the connection between theCompany and the elderly, expresses care and respect for the elderly,and carries forwards the traditional virtues of respecting the old andcaring for the young.
Visit the Elderly Association
To promote the development of sports at Gunong Farm Middle Schooland effectively improve the physical fitness of students, the Companyassisted the Gunong Farm Middle School in organizing an athletic meet byproviding necessary funding and material support. This sports meet inspiredmore students to participate in sports, cultivated their spirit of teamworkand competitiveness, and laid a solid foundation for their comprehensivedevelopment.
Sponsor the Athletic Meet at the Gunong Farm Middle School
During the reporting period, the Company organized a voluntary blooddonation drive titled “Roll Up Your Sleeves, Donate Blood Generously”,and encouraged employees to participate actively. Through this activity,employees lent their helping hands to patients in urgent need of blood,and spreading warmth and care. Also, employees experienced theresponsibilities and missions as members of society.
Organize the voluntary blood donation drive among employees
Voluntary blood donation activityVisit the Gunong Farm Liming Zhuqu Elderly Association“Solex” Athletic Meet at the Gunong Farm Middle School
Participation in Charity
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The Company has established a sound environmentalmanagement system and a response management system, andhopes that its production activities comply with the requirements ofenvironmental regulations and standards through comprehensiveassessment and control of possible environmental impacts andrisks in its production activities.
With the environmental policy of “preventing environmental pollution, complying with environmental regulations, promoting energy conservation andconsumption reduction, and creating a harmonious coexistence of people and water”, the Company has formulated and revised the EnvironmentalManagement Technology system, and established an Environmental Management Center, fully responsible for the daily environmental supervision,management, and monitoring of the Company, and the coordination between the Company and the government’s environmental departments, so as to ensurethe smooth conduct of daily environmental work. In addition, it has established a sound environmental management organization structure, and obtained ISO14001 Environmental Management System Certication and National Green Factory Certication.
ISO 14001 Environmental Management System Certicationsobtained by the Company and Zhangzhou Solex
Vice Chairman
Manager of the Environmental
DepartmentEnvironmentalProtection Section
Xiamen Environmental
Team
ChangtaiEnvironmental Team
Water Treatment Team
A Leader of Scienceand Technology Park
Water Treatment ofthe Health Park
Water TreatmentTeam Head ofIntelligent Park
Water Treatment ofBuilding MaterialsPark
Water TreatmentSection
Hazardous Waste HeadHead of HazardousWaste Warehouse
Organization chart of the environmental management system
Daily EnvironmentalProtection Management
Environmental Management
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
Being officially put into production in 2020, Zhangzhou Solex is theCompany’s largest smart home manufacturing center in recent years. Afteronly two years of operation, this center has reached the level of a “GreenFactory”, namely, achievement of green goals such as intensive land use,harmless raw materials, clean production, waste resource utilization, andlow-carbon energy, and has become an advanced model of local greenmanufacturing.Currently, both the Company and Zhangzhou Solex have obtained theGreen Factory Certication.
National Green factory
The Company has established the Environmental Hidden Hazard Investigation System, and implemented environmental protection and work safetyaccording to the principles of “three musts”, “who is in charge, who is responsible”, and “all employees, whole process, all around, and 7*24”. Inaddition, the Company has established the Environmental Emergency Response Plan, and formed an emergency plan revision group to strengthenthe response capabilities of the employees when facing environmental emergencies.
In July 2023, the Company organized special training on the EnvironmentalEmergency Response Plan for the environmental specialists from variousworkshops. The contents of training included but were not limited to thetypes and characteristics of environmental emergencies, formulation andimplementation process of emergency response plans, departmentalcoordination mechanisms, and preparation and use of emergency responseequipment and resources. This training was designed to enable employeesto respond quickly and e?ectively to environmental emergencies, minimizedamage to the environment, and ensure the safety and health of employees.
In August 2023, the Company conducted its annual drill on the disposal ofhazardous waste (oil) leakage, primarily simulating emergency treatmentin the process of leaked hazardous waste (oil) cleanup. This drill aimedto enhance the capabilities of the employees in handling emergenciesand their environmental awareness, and to test the emergency responsespeed of relevant employees.
Training on the Environmental Emergency Response PlanHazardous waste leakage disposal drill
Green Factory plaques
Training on the Environmental Emergency Response PlanHazardous waste leakage disposal drill
the Company organized a total of
sessions of environmentalprotection training
covering
person-times3,084
During the reporting period
Emergency Management
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The Company spares no e?ort to minimize the impact of three wastes (i.e. waste water, waste gas, and solid waste), hazardous wastes, and hazardouschemicals on the environment and human health and ensure the work safety. It has also taken a series of e?ective measures to reduce and treat theemissions of “three wastes”. Through comprehensive treatment and management of three wastes, the Company not only protects the environment andabates pollution, but also improves resource utilization e?ciency, reduces production costs, and achieves both economic and environmental benets.
The Company has formulated the Waste Gas Operation Manual for eachproduction line to standardize the waste gas treatment process, abateunorganized emissions of waste gas, and improve the e?ciency of terminaltreatment, so as to ensure compliance with exhaust emission standards.The Company has formulated the the Operation Manual for Water Discharge of the Electroplating Workshop to standardize the discharge of varioustypes of waste water and ensure the normal operation of the water treatment system. In the production process, the Company discharges the projectwaste water into the comprehensive pool after quality separation and diversion processing, so as to improve the water resource utilization rate. Somewaste water from the comprehensive pool is reused for production after being treated in the water reuse treatment facility, while the remaining isdischarged after meeting discharge standards.
In May 2023, the Company organized the training on the operationmanual for waste gas treatment facilities and volatile organic compoundemissions for the equipment staff, the person in charge of themanagement of waste gas treatment facilities and the environmentalspecialists of on-site production workshops. The contents of trainingcovered basic principles and workow of waste gas treatment facilities,preparation and updating of the operation manual, identification,monitoring and control of volatile organic compound emissions, etc.
Training on the operation manual for waste gas treatmentfacilities and volatile organic compound emissions
Training on the operation manual for waste gas treatment facilities andvolatile organic compound emissionsFlow chart of waste water quality separation and diversion processing
Prevention and Control of Three-waste Pollution
Waste Water
Waste Gas
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The Company manages solid waste by garbage classication, waste oil recycling devices in the injection molding workshop, injection molding granulation ABS recycling andother measures, so as to increase the reuse rate and avoid waste.
In March 2023, the Company organized the trainingon standardized management of solid waste for on-site hazardous waste management personnel, keyenvironmental management leaders from variousworkshops and environmental specialists. The contentsof training covered the knowledge on the classication,collection, storage, transportation, and disposal of solidwaste. Meanwhile, the lecturer introduced correspondingtreatment methods and technologies for di?erent typesof solid waste. What’s more, the training emphasizedthe importance of environmental protection laws andregulations, reminded relevant personnel to strictlycomply with the requirements of relevant regulations,and standardized waste treatment.
Training on standardized management ofsolid waste
Training on standardized management of solid wasteWaste oil recycling deviceInjection molding granulation ABS recycling
Garbage classication in the park
Solid Waste
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The Company has formulated the Hazardous Waste Management System, Hazardous Waste Management Plan, and Hazardous Waste WarehouseManagement System to standardize the management of hazardous waste. Hazardous waste generated in the production process of the Company is transferredto qualied third-party companies for disposal.
To strengthen the safety management of chemicals,ensure work safety, and safeguard the livesand properties of employees, the Company hasformulated the Measures for Management ofChemicals and Operating Regulations for DangerousChemicals, and implements a “specializedmanagement system” for storage of chemicals.
Tailor products accordingto customer demand,and minimize wasteof raw materials toavoid the generation ofhazardous waste
Regularly maintainwaste and exhausttreatment facilities tominimize leaks in theworkshop
Particle urea-formaldehyde molding plastics
PolypropyleneDegreasing oilLow-temperature shock-absorbing grease
Hydraulic oilLubricating oilSiliconeLiquid silicone rubber
Exercise e?ectivecontrol in theprocess to reducewasteUse moreenvironmentallyfriendly rawmaterials, andgradually increasethe use of cleanenergy
Use the equipment withbetter performance toreduce the generationof hazardous wasteand the consumptionof raw and auxiliarymaterials
Repeatedly use ragscontaining paintor alcohol, recyclecleaning wastewater, and reducegeneration
Improve designImprove the pollution
prevention andcontrol levelImprovemanagementUse cleanenergy and rawmaterialsUse advancedtechnology andequipment
Comprehensively usehazardous waste
Further abate pollutants from workshop source, and increase utilization and recycling rateStrengthen the management and control of the production process, implement strict classication management, and minimize the generation of hazardouswaste
Improve the quality of raw materials, strengthen the quality inspection of incoming raw materials, directly return unqualied materials to suppliers for reuseand reduce the chance of their entry into the production line, reduce the generation of unqualied materials, thereby reducing the generation of toxic andhazardous or low-toxic and low-hazardous waste
List of chemicals used in the production process
of the Company
Measures to reduce the generation of hazardous waste and minimize its toxicity
Plan on minimization of toxicity from hazardous waste
Hazardous WasteHazardous Chemicals
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities for
the Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The energy and resource conservation is one of the Company’s importantenvironmental protection efforts. Through the energy and water savingtechnology reform, the Company not only reduces production costs,meets customer demand, but also decreases environmental burdens.
The Company adheres to the energy management policy of “compliance with law, ne management, low-carbonmanufacturing, and sustainable development”. The Company has formulated the Energy Management Procedures,Energy Review Management Procedures, and Management of Energy Benchmark, Energy PerformanceParameters and Goal Indicators and other energy management systems, revised the Energy Management Manualand New, Modied, Expanded Energy Planning and Design Management Procedures during the reporting periodto standardize its daily energy and resource usage. By establishing a sound energy management system, theCompany has obtained ISO 50001 Energy Management System Certication.
ISO 50001 Energy ManagementSystem CerticationChart of energy management system process
Organization chart of the energy management system
D
C
A
PPlanningImprovement
Support andOperationPerformanceEvaluation
Leadership
Role
Energy Management System SpecicationsInternal and External Factors
Demands andExpectations of
Stakeholders
Expected Resultsof the EnergyManagement System
Energy Conservation Leadership Group
AdministrativeDepartment
Responsible
for water,electricity,gas, andsteam systemmeasurement,transportation,maintenance,administrative
logisticsand vehiclemanagement
Organize and overseethe energy conservationwork management ofShower Business Unit,Beauty Business Unit, andElectronics Business Unit
Responsible
for R&D,improvementandmanagementof newproducts
Responsibleforevaluatingsales plansand productprices
Responsible
foraccounting,
cashierbudgeting,and auditing
Responsiblefor planning,procurement,and suppliermanagement
Responsiblefor personneland trainingmanagement
Responsiblefor thedevelopment,procurement,andmanagement
of softwareand hardware
R&DDepartment
SalesDepartment
FinanceDepartment
ProcurementDepartment
HR Department IT DepartmentProduction Business
Unit
Energy Conservation Work Group
ShowerBusiness Unit
ElectronicsBusiness UnitBeauty BusinessUnit
Energy and ResourceConservation
Energy Conservation
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The Company has established the Energy Risk and Opportunity ControlProcedures, and set up an energy risk and opportunity assessment team,which is led by the energy-saving team. After extensive discussions ande?ective analysis and judgement by various departments, the Companyprepares the Energy Risk and Opportunity Assessment Form, gradesrisks and develops corresponding response measures.In accordance with the provisions of the Energy OperationManagement Procedures, the Company shall hold an annualenergy conservation summary and analysis meeting, conductenergy conservation publicity and education, and organize energyconservation training at the beginning of each year to enhanceemployees’ awareness of energy conservation. Additionally, theCompany formulates medium- and long-term energy conservationplans and corresponding employee reward and punishment measuresbased on energy conservation goals every year. Adhering to theprinciple of a combination of both spiritual and material management inenergy conservation e?orts, the Company ensures rewards for savingsand punishments for waste.
Commend outstanding units and individuals in energy conservation e?orts, and criticize the units andindividuals who consistently fail to meet energy conservation goals
Conduct an assessment on the responsible person, and also on the corresponding departmentmanager on a joint basis based on specific circumstances in case of energy losses caused byequipment, systems and other factors, or in case of failure to consider, analyze, study the defectsa?ecting equipment e?ciency or failure to work out improvement or treatment plans in the wholeproduction processIncrease assessments when there is an improvement and treatment plan, but the improvement andtreatment fail to be nished within the period as specied therein
The Administrative Department is responsible for maintaining and repairing all non-production energy (gas,water, electricity) metering devices at measurement points, and is required to ensure that the e?ective useand accuracy rates of such devices must reach 100%. Conduct an assessment on the responsible personbased on the resulting loss in case of any anomalies
Increase assessments on those who are irresponsible in their work and inefficient in their management,and who cause energy losses due to human and management responsibilities, and impose administrativepenalties and performance assessments on the managers, section chiefs and team leaders on a joint basis
Conduct performance assessments when human error results in metering errors, omissions, ormisreporting of energy consumption and electrical energy
Relevant departments should inspect energy-saving measures for the use of water, electricity, gas and steam at offices and on-site.Circulate a notice of criticism against any waste behavior due to failure to comply with the requirements
he Company implemented a total ofDuring the reporting period
achieve annual electricity savings of
invested approx. RMB
annual steam savings ofenergy conservation management plans
kWh
million
tons
500,000
3.75
10.8
Rewards and punishments for energy conservation assessments of the Company
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
Zhangzhou Solex invested RMB 1,636,000 to purchase 4 air compressors with the level-1 energy e?ciency label, which were equipped with AI controllers.These compressors can automatically start and stop based on backend big data, with one featuring load adjustment frequency and two incorporatingwaste heat recovery systems. The application of these technologies will e?ectively reduce energy consumption, decrease environmental burdens, and alsocontribute to improvement in production e?ciency and cost savings. This energy-saving technology reform project reects the Company’s commitment toenergy conservation and emission reduction and has won the title of “Provincial Energy-saving Demonstration Project”.
In response to the national carbon peaking and carbon neutrality goals, Zhangzhou Solex introduced a rooftop PV project, taking full advantage of idlerooftops for distributed PV construction. By adopting the “self-generation and self-consumption, with surplus electricity being transmitted to the grid” model,Zhangzhou Solex achieved the dual goals of effective utilization of electricity, and energy saving and emission reduction. Clean energy accounted for
25.33% of the total energy consumption at this base.
Application of energy-saving air compressors
Rooftop PV power generation
Rooftop PV power generation project
With PV construction, the Company generated
equivalent to plantingreduced carbon emissions bykWh of electricity annually
treestons
5,000,000
209,6005,000
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The Company has formulated a Water Consumption ManagementSystem to rationally standardize water consumption, strengthen watermanagement, and improve water utilization efficiency. In accordancewith the requirements of the policy, the Company’s Energy Departmentorganizes water balance tests every three years and obtains test reports.
the Company implemented atotal ofDuring the reporting period
water savingmanagement plans
which can achieve annualwater savings of
tons64,590
Water consumption plan is
tons per month50,884
Waste water from production is reused after being treated by equipmentand meeting standards.
The Company’s factories use recycled water in their cooling towers andadopt medication treatment to reduce waste water discharge.
The production assembly water testing of the Company uses recycled water, andthe cleaning frequency has been extended from once per quarter to once per year.Water saving management plans
Waste water recycling treatment centerCycling use of water in injection molding coolingRecycling pool of assembly water testing
Water Saving
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The Company takes “green manufacturing and smarthome” as its long-term development strategy. It seeks toachieve greening of products from four aspects, namely,energy conservation, water saving, zero PVC, and recycledmaterials, and strives to reduce the impact on environmentin the product life cycle, to enhance the green qualityof products, and to meet the demand of customers forenvironmentally friendly products, thereby making positivecontributions to sustainable development.
Manage water and energyconsumption by water usageand water temperature displayedon LED display screens, thusreducing energy consumption
Use environmentally friendlymaterials to manufactureproducts, and not generateharmful gases or heavy metalpollution in the production process
Mix water with air to reducewater consumption by 40%,without affecting showerexperience
Up to 65% recycled materialsare contained in the products ofthe Company, which are basedon the waste plastics discardedby the end consumer.
Green electroplating is an environmentally friendly surfacetreatment technology, which can reduce or eliminateenvironmental pollution and harmful substance emissionsgenerated in traditional electroplating process. The Companyintroduced the advanced Chrome 3 technology to optimize theproduction process, reduce energy consumption and wastewater discharge, and minimize the negative impact of theelectroplating process on employees and the environment.Traditional Chrome 6 technology
Chrome 3 technologyMetallic chromium coating in plating solutioncomes from Cr
6+
or Cr3+
? Metallic chromium coating in plating solutioncomes from Cr
3+? Less toxic to human health (toxicity is only 1%of Cr
6+)? Non-oxidizing? Safer in manufacturing processes and alsofor humans and the environment
Green electroplating technology
Updated temperature adjustment planHydropower sensor faucet
Green products
Comparison of two electroplating technologies
The cross-ow of hot and cold water pipes in faucets leads to signicant hidden energy waste. If calculated basedon a cross-ow rate of 0.8L/m per time, 150 times/day, 20 seconds/time, a rise in the temperature from 20 degreesCelsius to 70 degrees Celsius, and a heater thermal e?ciency of 0.9, a conventional temperature-adjustable faucetwill waste 900 degrees of electricity a year, which can be used by the family for three months. To address this issue,the Company has developed a completely independent and closed full-cold and full-heat sensor facet, helpingenergy conservation from small steps.
The Company has upgraded the temperatureadjustment plan, and uses a new faucet structure toensure cold and hot separation without any leakage.This design ensures that the faucet ball head and thegasket are completely sealed when the water ow isin either full cold or full hot state, thus preventing coldwater infiltration in full hot state and eliminating hotwater waste in full cold state. The design has beenawarded an invention patent.
The Company developed infrared sensing technology,ensuring that the static power consumption of the faucetis not greater than 25UA. When a user uses ordinaryfour AA batteries, the faucet can operate normally formore than 2 years. When the user uses lithium batteriesalong with super capacitors, if calculated at a ow rateof 3L/min, the charging current can reach over 35mA. Ittakes approx. 10 minutes to fully charge the capacitor,and when fully charged, it can power the solenoid valveto switch continuously for over 250 times, with no needfor battery replacement for at least 8 years.
E?cient water savingE?cient energy conservation
Water saving and energy conservation starting with small steps
EnergyConservation
Water
Saving
0 PVC
RecycledMaterials
Green Water-Saving Products
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The Company is actively pursuing its carbon neutrality goals and strives to become a carbon-neutral companyby 2025. With a strong conviction that the environmental initiatives are key to building a green home, ithopes to drive environmental concern and involvement among downstream supply chains and employees bypracticing green packaging and green o?ce initiatives.
The Company uses biodegradable or recyclablegreen materials for product packaging, such as paperand bio-based plastics, to reduce plastic pollution andresource waste. All printing adopts environmentallyfriendly inks, including product silk screen, packagingliner and outer box printing. The Company reducesthe use of packaging materials, decreases packagingweight and volume, and minimizes consumption andwaste generation by optimizing product packagingdesign. In addition, the Company reuses packagingand cargo transport pallets to minimize packagingwaste and environmental pollution.The sustainable packaging solutions of the Companyhave been veried by the Forest Stewardship Council(FSC). Further, the products and raw materials ofthe Company have obtained green supply chaincertications from reputable organizations in multiplecountries or regions.
The recycling rate of the Company’sproduct packaging materials is
the percentage of recycled plastic contentin some plastic packaging materials is
%
%
Forest Stewardship Council (FSC) CerticationProvincial Green Supply Chain Management Enterprise
Wrapping paperPP nonwovencomposite bubblebags
PE bags with 51%recycled content
PE bags with 30%recycled content
PP nonwovenfabric bags that candecompose naturallyafter 90 days outdoorBio-basedhydroentangled bags
Dust-free paper bags
PBAT/PLA blendedbiodegradable
plastic bags
Basic types of the environmentally friendly packaging materials of the Company
Green Home Co-creation
Green Packaging
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The Company continuously explores and promotes green product packaging, and redesigns product packaging and streamlines packaging structure to minimize the useof packaging materials, while ensuring the functionality and protective performance of production packaging are not a?ected. Additionally, it advocates the concept of greenconsumption, conveys the value and signicance of reduced packaging to consumers, and guides them to support green products, with a view to reducing the negative impactof packaging waste on the environment.
Downsize the color packaging box:
Reduce height and width of the color
packaging box
Remove internal plastic packaging:
Replace inner PE bags with bundled
straps
Downsize turnover pallets:
Downsize turnover pallets of internal partsReplace the expandable polystyrene withpaper for the turnover pallets of internal partsItem
Before change
After change
Reduced packaging
Reduced product packaging of the Company
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
The Company organizes green actions such as environmental knowledge competitions to enhance employees’ awareness of environmental protection and facilitate the dissemination of environmental concepts within theCompany. Meanwhile, it devotes itself to promoting green o?ce and taking measures such as water-saving slogans and air-conditioning temperature limitation, so as to ensure that energy conservation e?orts are integrated intothe daily work of employees.
In June 2023, the Company organized a World Environment Day activity titled “Building Modernization for HarmoniousCoexistence between Humans and Nature”. This activity was designed as an interactive environmental knowledgecompetition, with the aim of enhancing employees’ environmental awareness and increasing their concern to andinvolvement in environmental protection e?orts.
During the reporting period, the Company efficiently and visually promoted the conceptof green investment to employees and the public with help of the electronic screen, so asto popularize knowledge about green financial investment, enhance recognition of greenfinance, strengthen risk prevention awareness, advocate green investment, and jointlypromote the sustainable development of the nancial industry.
Contest on the Environment DayGreen nancial investment publicity
Publicity posters and banners
Green nancial investment publicity
Green Actions
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
Issue Quantitative IndicatorUnit 2023 Data2022 Data2021 Data
EnvironmentalManagement
Total investment in environment managementRMB 14,488,071 13,773,408 10,217,587Including: Total investment in energy-saving andconsumption-reducing improvement initiatives
RMB 3,173,631 5,306,735 2,167,666Including: Total investment in other measuresrelated to environmental protection
RMB 11,314,440 8,466,673 8,049,921
Energy Use
Gasoline consumption in self-owned vehicles foro?cial use
Liter (L) 44,921 35,897 45,690Diesel consumption in self-owned vehicles foro?cial use
Liter (L) 11,358 10,587 9,681Diesel consumption in self-owned logistics freightvehicles
Liter (L) 50,753 54,786 67,859Total natural gas consumptionCubic meter (m?) 120,862 140,530 163,172Total steam consumptionCubic meter (m?) 9,941 10,094 10,627Total electricity consumption Megawatt hour (Mwh) 62,134 59,029 67,331Total purchased electricityMegawatt hour (Mwh) 26,950 29,342 33,731Consumption of self-generated renewableelectricity
Megawatt hour (Mwh) 2,080 00Electricity consumption per unit output Megawatt hour (Mwh)/RMB 10,000 0.21 0.20 0.20Annual electricity savings directly realized byenergy saving and e?cient measures
Kilowatt hour (kWh) 8,487,251 759,528 3,512,004Annual use of recycled plastic Ton991954905
Key Performance
Environmental
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
Issue Quantitative IndicatorUnit 2023 Data2022 Data2021 Data
Waste GasManagement
Total waste gas emissions0,000 cubic meters (0,000 m?) 373,908 274,140 393,156Nitrogen oxide (NOx) emissions Kilogram (kg)0.020.020.22Sulfur oxides (SOx) emissionsKilogram (kg)0.020.020.22Volatile organic compounds (VOCs) emissionsKilogram (kg)1.271.631.14Ammonia (NH
) emissionsKilogram (kg)0.070.100.31Hydrogen chloride (HCL) emissionsKilogram (kg)1.790.882.31
Water ResourceManagement
Total water consumption Cubic meter (m?) 463,751 410,648 467,872Total net freshwater consumptionCubic meter (m?) 463,751 410,648 467,872By source of abstraction: municipal water supplyCubic meter (m?) 463,751 410,648 467,872Recycled/reused water Cubic meter (m?) 47,330 45,660 44,260Water consumption per unit of product Cubic meter (m?)/RMB 10,000 1.57 1.39 1.36Annual water savings directly realized by watersaving measures
Ton 76,357 50,289 56,210Total waste water emissions 0,000 cubic meters (0,000 m?)24.2822.3624.81Total chromiumKilogram (kg)12.606.9022.50Hexavalent chromiumKilogram (kg)1.200.4012.00
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
Issue Quantitative IndicatorUnit 2023 Data2022 Data2021 Data
Water ResourceManagement
Total copperKilogram (kg)12.106.6048.90Total nickel Kilogram (kg)11.908.5011.1Chemical oxygen demand in waste waterKilogram (kg) 15,842 10,80913,926Ammonia and nitrogen in wastewater Kilogram (kg) 4,211 3,764 5,253Total nitrogen in waste waterKilogram (kg) 5,774 6,193 7,249Total phosphorus in waste waterKilogram (kg) 801 849 111Suspended solids in waste waterKilogram (kg) 8,164 4,904 3,723
Solid wastemanagement
Total hazardous wasteTon 1,100 1,112 1,299Total industrial solid waste Ton 1,948 2,311 1,819Total recycled/reused solid waste Ton 3,048 3,423 3,118Solid waste recycling rate%100100100
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
Issue Indicator CategoryQuantitative IndicatorUnit 2023 Data2022 Data2021 Data
Occupational Healthand Safety
Environmentaltraining and drills
Total hours of environmental and work safetytraining
Hour 1,802 1,705 2,207Number of safety drills (re, toxic gas leakage, etc.)Time353128
Work-related injury
Number of employees who were injured at work(minor injury and above)
Person 202225Number of work-related fatalitiesPerson 000Number of lost workdays due to work-relatedinjuries
Day 353729525Incidence rate of occupational diseases%000Lost time injury frequency rate of employees %333
Supplier safety
Number of suppliers who were injured at work (minorinjury and above)
Person 010Number of supplier work-related fatalitiesPerson 000Lost time injury frequency rate of suppliers%000Total hours of supplier safety trainingHour 237284379
Society
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
Issue Indicator CategoryQuantitative IndicatorUnit 2023 Data2022 Data2021 Data
Talent Training andDevelopment
Employee traininghours
Total training hours Hour 21,245 20,768 19,436Training participation hours per capita Hour 4.504.003.50Total training hours of male employees Hour 12,534 12,668 11,855Training hours per male employeeHour 4.504.023.51Total training hours of female employees Hour 8,710 8,099 7,580Training hours per female employeeHour 4.503.963.49Employee training andassessment
Total employees who participate in training andassessment
Person 8,005 9,042 10,484Total employee who passed the assessment Person 8,005 9,042 10,484Training assessment pass rate %100%100%100%
Employee Survey
Employee satisfaction
Total number of employee satisfactionquestionnaires distributed
Copy 4,974 5,596 5,553Questionnaire recovery rate %100100100Employee satisfaction result%97%89%99%
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
Issue Indicator CategoryQuantitative IndicatorUnit 2023 Data2022 Data2021 Data
SupplierManagement
Overall suppliers Number of suppliers 1,338 1,333 1,324
Supplier categorymanagement
Raw material suppliers 144142139Equipment suppliers 180176168Non-production suppliers 211207200Tier 1 suppliers (direct suppliers) 783790801Non Tier 1 suppliers (indirect suppliers) 201816Supplier assessment
Supplier assessment coverage rate %383736Supplier assessment pass rate %989898
Sustainableprocurement
Percentage of suppliers who have signed the Codeof Conduct for Suppliers
%100100100Percentage of suppliers who have signedagreements containing the environment and laborrequirements clause
%100100100Number of suppliers who have conducted socialimpact assessments
289284277Number of suppliers who have conductedenvironmental impact assessments
289284277Number of suppliers who have been identied ashaving actual and potential signicant negativesocial impacts
0 0 0Number of suppliers who have been identied ashaving actual and potential signicant negativeenvironmental impacts
0 0 0Percentage of the Company’s internal procurementsta? who have passed the sustainable procurementtraining
%100100100
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
Issue Indicator CategoryQuantitative IndicatorUnit 2023 Data2022 Data2021 Data
Intellectual PropertyIntellectual property
Number of patents held pcs1,346 1,475 1,328Number of invention patents heldpcs356394397Number of new patents in a yearpcs213250289Number of patents under review pcs565640635Number of copyrights held pcs022Number of trademarks heldpcs106138138
Network Safety Network safety
Number of conrmed network safety incidentsCase011Number of network safety training sessions Session 542Number of network safety emergency responsedrills
Time 000Number of conrmed network safety incidentsCase000Public Welfare
Investment in publicwelfare
Social contribution value per shareRMB3.232.612.36Investment in social contribution RMB 0’00038.884.9910.38
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
Issue Indicator CategoryQuantitative IndicatorUnit 2023 Data2022 Data2021 Data
Anti-Corruption
Corruption incidents
Total of corruption incidents under investigationCase100Total of conrmed corruption incidents Case220Total of resolved corruption incidentsCase220Number of personnel involved in resolvedcorruption incidents
Person 420Total of terminations or non-renewals ofcontracts with business partners due tocorruption-related violations
Case210Anti-Corruption Training
Number of anti-corruption training sessionsSession 100Number of employees participating in anti-corruption training
Person 43000Percentage of employees whohave signed the Commitmenton Code of Conduct
Number of employees who have signed theIntegrity Commitment
Person 451158183Percentage of employees who have signed theIntegrity Commitment
%1033Number of suppliers who have signed the Anti-bribery Committee
Person 579542498Percentage of suppliers who have signed theAnti-bribery Committee
%434138
ComplianceOperation
Environmental violations
Number of violations of environmental laws andregulations
pcs020Total fines imposed on violations ofenvironmental laws and regulations
RMB (in 0,000)04.900Unfair competition
Violations of unfair competitions pcs000Total fines imposed on violations of unfaircompetitions
RMB (in 0,000)000Violations of laws
Number of violations of social laws andregulations
pcs120Total nes imposed on violations of social lawsand regulations
RMB (in 0,000)0.200.210
Governance
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
GRI StandardDisclosureLocationStatement of use
Solex has reported the information cited in this GRI Content Index for the period from January 1, 2023 to December 31, 2023 with reference to the GRIStandards.
GRI 1 usedGRI 1: Foundation 2021
GRI 2: General Disclosures 2021
2-1 Organizational details About this Report2-2 Entities included in the organization’s sustainability reportingAbout this Report2-3 Reporting period, frequency and contact pointAbout this Report2-4 Restatements of informationAbout this Report2-6 Activities, value chain and other business relationshipsAbout Solex2-7 Employees Common Growth with Employees2-9 Governance structure and compositionE?cient and Regulated Governance2-11 Chair of the highest governance bodySee the Annual Report2-16 Communication of critical concernsESG Management2-23 Policy commitmentsAbout this Report2-27 Compliance with laws and regulationsE?cient and Regulated Governance2-28 Membership associationsPromotion of Industry Exchange2-29 Approach to stakeholder engagement ESG Management
GRI Contents Index —“Reporting with reference to GRI Standards”
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
GRI StandardDisclosureLocation
GRI 3: Material Topics 2021
3-1 Process to determine material topicsESG Management3-2 List of material topics ESG Management3-3 Management of material topics ESG ManagementGRI 201: Economic Performance 2016201-1 Direct economic value generated and distributedSee the Annual ReportGRI 205: Anti-Corruption 2016205-2 Communication and training about anti-corruption policies and proceduresAnti-corruption and Integrity in OperationGRI 301: Materials 2016
301-1 Materials used by weight or volumeKey Performance301-2 Recycled input materials usedKey Performance301-3 Reclaimed products and their packaging materialsGreen Home Co-creationGRI 302: Energy 2016
302-1 Energy consumption within the organizationKey Performance302-3 Energy intensityKey Performance302-4 Reduction of energy consumptionEnergy and Resource Conservation302-5 Reductions in energy requirements of products and servicesEnergy and Resource ConservationGRI 303: Water and E?uents 2018
303-2 Management of water discharge-related impactsEnergy and Resource Conservation303-4 Water dischargeEnergy and Resource Conservation303-5 Water consumptionEnergy and Resource ConservationGRI 306: Waste 2020306-3 Waste generated Prevention and Control of Three-waste PollutionGRI 308: Supplier Environmental Assessment 2016308-1 New suppliers that were screened using environmental criteriaStable Procurement Supply
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
GRI StandardDisclosureLocation
GRI 401: Employment 2016
401-1 New employee hires and employee turnoverKey Performance401-2 Benefits provided to full-time employees that are not provided to temporary or part-timeemployees
Common Growth with Employees401-3 Parental leaveCommon Growth with Employees
GRI 403: Occupational Health and Safety 2018
403-1 Occupational health and safety management systemCommon Growth with Employees403-2 Hazard identication, risk assessment, and incident investigationCommon Growth with Employees403-5 Worker training on occupational health and safety Common Growth with Employees403-6 Promotion of worker healthCommon Growth with Employees403-7 Prevention and mitigation of occupational health and safety impacts directly linked bybusiness relationships
Common Growth with Employees403-8 Workers covered by an occupational health and safety management systemCommon Growth with Employees403-9 Work-related injuriesCommon Growth with EmployeesGRI 404: Training and Education 2016404-1 Average hours of training per year per employeeCommon Growth with EmployeesGRI 405: Diversity and Equal Opportunity 2016 405-1 Diversity of governance bodies and employeesE?cient and Regulated Governance and Common Growth with EmployeesGRI 414: Supplier Social Assessment 2016414-1 New suppliers that were screened using social criteriaStable Procurement SupplyGRI 416: Customer Health and Safety 2016416-1 Assessment of the health and safety impacts of product and service categoriesO?er of Top-notch Customer ServiceGRI 417: Marketing and Labeling 2016417-1 Requirements for product and service information and labelingO?er of Top-notch Customer Service
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety
Dear reader,Thank you for sparing time to read the 2023 Environmental, Social andGovernance (ESG) Report of Xiamen Solex High-tech Industries Co., Ltd.To provide you and other stakeholders with more valuable information andimprove our capabilities of performing the corporate social responsibility, weare looking forward to your comments and suggestions.Choices (Please tick the appropriate box √)
QuestionExcellentGoodMediocreSubparBadWhat's your overall impression on this report?Does this report respond to the issues that the stakeholdersconcern about or disclose the information as required?How do you think of Solex in performing the economicresponsibility?How do you think of Solex in performing the environmentalresponsibility?How do you think of Solex in security management?How do you think Solex in performing the employeeresponsibilities?How do you think of Solex in performing the communityresponsibilities?Are the information, indicators and data disclosed in thereport clear, accurate and complete?Do you nd content arrangement and layout design of thereport reader-friendly?Open Question:Do you have any comments andsuggestions for Xiamen Solex High-tech Industries Co.,Ltd. in performing social responsibility or preparing thereport?
是否
Reader Feedback
Xiamen Solex High-tech Industries Co., Ltd.
Responsibilities forthe Green Earth
PostscriptionOpening
Responsible Governanceand Stable Development
Hand in Hand withSociety