Climate Change Data

Environmental Metrics

Governance Achievements

• Implemented a 2022 restricted stock incentive plan, granting 13.33 million shares to 227 incentive recipients.

Climate Goals & Targets

Environmental Challenges

• Global macroeconomic fluctuations, the Russia-Ukraine geopolitical conflict, energy market volatility, and exchange rate changes due to the appreciation of the US dollar negatively impacted the global PCB market.
• High raw material costs (approximately 70% of total costs), particularly for copper-clad laminates, copper balls, copper foil, semi-cured sheets, and potassium gold cyanide, which are significantly influenced by copper, oil, and gold prices.
• Fluctuations in exchange rates due to the company's reliance on exports (approximately 60% of revenue) primarily settled in US dollars.
• Risks associated with leasing factory buildings and potential relocation due to unresolved property ownership issues in Shenzhen.
• Potential impact of escalating US-China trade disputes on export business.

Mitigation Strategies

• Implementing "improve efficiency, enhance quality, reduce costs" and "group management, factory-level benchmarking" initiatives to increase per capita output and reduce unit costs.
• Increasing panel size to improve material utilization and diversifying suppliers to enhance purchasing power.
• Using dollar-denominated loans, paying for imported raw materials in dollars, purchasing imported equipment in dollars, increasing RMB orders, expanding the domestic market, and engaging in forward foreign exchange transactions to mitigate exchange rate risks.
• Securing land for new facilities in Guangming New District, Shenzhen and Gaolan Port Economic Zone, Zhuhai to reduce reliance on leased facilities.
• Focusing on developing domestic large-scale customers and high-tech products to mitigate trade dispute risks.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• National Intellectual Property Demonstration Enterprise
• Guangdong Famous and Excellent Products
• National High-tech Enterprise
• Provincial Enterprise Technology Center
• Guangdong Famous and Excellent High-tech Products
• Unlimited Innovation Jiangmen Science and Technology Award
• National Specialized and New "Small Giant" Enterprise Award
• ZTE Best Comprehensive Performance Award
• Dahua Strategic Supplier Award
• Bosch Sustainable Development Supplier Award
• Yun Jian Strategic Partner Award
• Goertek Best Quality Award
• Fineline Special Contribution Award
• Guangfeng Technology Excellent Partner Award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Invested 44,125,000 yuan in environmental system maintenance and upgrades.
• Paid 108,677.07 yuan in environmental protection tax.

Social Achievements

• Received awards from various clients, including Hikvision, Cloud Peak Information, PCB Technologies, and others.
• Implemented employee stock ownership plans and stock incentive plans.

Governance Achievements

• Maintained good credit standing with no unfulfilled court judgments or overdue debts.
• Established a robust corporate governance structure.

Climate Goals & Targets

Environmental Challenges

• Fluctuations in macroeconomic conditions and downstream industries.
• Volatility in raw material prices.
• Exchange rate fluctuations.
• Risks associated with leasing factory buildings.
• Potential impact of trade disputes.

Mitigation Strategies

• Focus on large markets, industries, clients, and orders.
• Cost reduction and efficiency improvement measures.
• Strengthening quality management.
• Increased R&D investment in high-tech products.
• Capacity expansion.
• Diversification of customer base (domestic and international).
• Hedging strategies against exchange rate fluctuations.
• Securing land for new facilities to mitigate relocation risks.
• Developing domestic markets and high-value products.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Haikang Weishi Excellent Supplier Award
• Cloud Peak Information Strategic Partner
• PCB Technologies Annual Excellent Supplier Award
• Bai Cai Bang Best Partner
• FLEX Excellent Quality Award
• Lecheng Network Excellent Delivery Award