Climate Change Data

Environmental Metrics

Environmental Achievements

• Formulated the “Energy Conservation and Emission Reduction Management System”, “Energy Management Operation Guideline”, “Greenhouse Gas Management Regulations” and other systems to integrate the concept of environmental protection into the company’s daily production and operation. Actively designs green products, builds green factories and promotes green offices to implement the concept of energy saving and low carbon by action.
• Established scientific waste management control procedures, chemical management procedures and other relevant norms, so as to strictly control pollution, minimize the impact of its business operations on the environment and realize green production.
• Promoted the green transformation and upgrading of factories and realized green development by building rooftop solar energy and using electric forklifts in accordance with the principles of low -carbon energy and clean production.
• Advocated system upgrades around the concept of green office and actively promoted the popularity of green office awareness throughout the company in collaboration with the support of various departments.

Social Achievements

• Strengthened its standardized operation, established a sound corporate governance structure, standardized management in the convening, holding and proceedings of shareholders’ meetings, and ensured the shareholders’ rights to information, participation and voting on important matters of the Company.
• Continuously improved the Company’s internal control system and amended the Articles of Association in accordance with relevant regulations.
• Conscientiously fulfilled its information disclosure obligations, ensured the truthfulness, accuracy, completeness, timeliness and fairness of information disclosure, and strictly implemented the system of registration of insider information informants and confidentiality of insider information, and treated all shareholders and investors fairly.
• Strengthened investor relations management, and communicated with investors through various means such as investor relations interactive platform and hotline, and protected the legitimate rights and interests of all shareholders of the Company, especially the small and medium shareholders.
• Paid the social insurance for employees’ pension, medical care, unemployment, work injury and maternity on time, respects and safeguards employees’ personal rights and interests, and pays practical attention to employees’ health, safety and satisfaction.
• Attached importance to the cultivation of talents, regularly organizing training on safety production knowledge, basic skills training for each position, and comprehensive quality training for management personnel, so that employees can effectively improve their overall professionalism and comprehensive quality in addition to their own work, realize the common growth of employees and enterprises, and build a harmonious and stable labor -management relationship.
• Followed the trading principles of “honesty and trustworthiness, mutual benefit and legal compliance”, paid attention to communication and coordination with all relevant parties, fully respected and protected the legitimate rights and interests of suppliers and customers, and established strategic partnership with suppliers and customers.
• Constantly improved the procurement system and process, and in the selection of suppliers, the company has established a fair and impartial evaluation system to screen out qualified suppliers.
• Insisted that the interests of customers are paramount, strictly controls product quality, constantly improves service quality, and always pays attention to product safety, so that the rights and interests of all parties are duly protected.

Governance Achievements

• Improved its corporate governance structure, established and improved its internal management and control system, enhanced its governance level and standardized its operation in strict accordance with the requirements of the Company Law, the Securities Law, the Code on Governance of Listed Companies and the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange.
• Established a comprehensive performance appraisal and evaluation system, and the appointment of senior management is open, transparent and in compliance with relevant laws and regulations and the Company’s internal rules and regulations.
• Established a performance evaluation system to link employees’ income to their work performance.
• Revised its Articles of Association in accordance with the new Securities Law, the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange and other laws, regulations and regulatory documents, taking into account the actual situation of the Company, and continuously improved and enhanced the level of corporate governance in accordance with the laws, regulations, regulatory documents and the provisions and requirements of the Articles of Association.
• Maintained effective internal control over financial reporting in all material respects in accordance with the requirements of the Code of Corporate Internal Control system and related regulations.

Climate Goals & Targets

Environmental Challenges

• Risk of exchange rate fluctuation
• Risk of rising raw material prices
• Risk of trade friction
• Shipping cycle risk

Mitigation Strategies

• Strengthen its overseas layout and settlement control to hedge and reduce the impact of exchange rate fluctuations on the company’s performance.
• Strengthen procurement and cost control, establish strategic cooperative relationships with suppliers and sign long -term agreements to absorb the risk of raw material price fluctuations; at the same time, continue to optimize the product structure, strengthen the research and development of new products, rely on innovative products to determine reasonable prices and maintain product gross margins.
• Pay close attention to the international situation, continue to implement its internationalization strategy, promote the construction of overseas manufacturing bases, cultivate overseas supply chains, establish a global production capacity layout and supply chain system, and ensure the stable development of the company’s business.
• Actively communicate with major shipping companies around the world to lock in capacity and freight rates in advance to ensure that the company’s business will not be adversely affected by fluctuations in shipping cycles.

Supply Chain Management

Responsible Procurement

• Established a fair and impartial evaluation system to screen out qualified suppliers.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Green products

Environmental Metrics

Environmental Achievements

• Formulated the Energy Conservation and Emission Reduction Management System, Energy Management Operation Instruction, Regulations on Greenhouse Gas Management and other systems, integrating the concept of environmental protection into the daily production and operation of the company.
• Actively design green products, build green factories and promote green office to implement the concept of energy saving and low carbon.

Social Achievements

• Strengthened the standardized operation, established and improved the corporate governance structure, standardized management in the convening and procedure of the general meeting of shareholders, and ensured the shareholders' right to know, right to participate and right to vote on major issues of the company.
• Improved the Company's internal control system, revised the Articles of Association according to relevant regulations.
• Conscientiously performed the obligation of information disclosure, ensured the true, accurate, complete, timely and fair information disclosure, did not selectively disclose information, strictly implemented the insider information registration and insider information confidentiality system, and treated all shareholders and investors fairly.
• Strengthened investor relationship management, communicated with investors through investor relationship interactive platforms, hotlines and other means, and protected the legitimate rights and interests of all shareholders, especially minority shareholders.
• Adheres to the people-oriented, takes the talent strategy as the focus of enterprise development, strictly abides by the Labor Law, the Law on the Protection of Women's Rights and Interests and other relevant laws and regulations, pays employees' pension, medical, unemployment, industrial injury, maternity and other social insurance on time, respects and protects employees' individual rights and interests, and pays attention to employees' health, safety and satisfaction.
• Attaches great importance to personnel training, and regularly organizes training on production safety knowledge, basic skills of various positions, and comprehensive quality training of management personnel, so that employees can effectively improve their overall professional quality and comprehensive quality in addition to their own work, so as to realize the common growth of employees and enterprises, and build harmonious and stable labor-capital relations.

Governance Achievements

• Continuously improved the corporate governance structure, established and improved the internal management and control system, improved the corporate governance level, and standardized the operation of the Company in strict accordance with the requirements of relevant laws and regulations such as the Company Law, Securities Law, Governance Code for Listed Companies, and Rules for Stock Listing of Shenzhen Stock Exchange.

Climate Goals & Targets

Environmental Challenges

• Exchange rate fluctuation risk
• Risk of rising raw material prices
• Risk of trade conflict

Mitigation Strategies

• Strengthen overseas layout and foreign exchange settlement regulation, to hedge and reduce the impact of exchange rate fluctuations on the company's performance.
• Strengthen procurement and cost control, establish strategic cooperative relations with suppliers and sign long-term agreements to absorb the risk of raw material price fluctuations. Optimize the product structure, strengthen the R&D of new products, and rely on innovative products to determine reasonable prices, maintaining the product gross profit margin.
• Pay close attention to the international situation, continue to implement the internationalization strategy, promote the construction of overseas manufacturing bases, cultivate overseas supply chains, and establish a global production capacity layout and supply chain system to ensure the stable development of the company's business.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social Responsibility

Environmental Achievements

• Formulated the Energy Conservation and Emission Reduction Management System, Energy Management Operation Instruction, Regulations on Greenhouse Gas Management and other systems, integrating the concept of energy conservation and environmental protection into each link of operation and development of the Company.
• Actively designs green products, builds green factories, promotes green offices, and carries out green publicity.

Climate Goals & Targets

Environmental Challenges

• Exchange rate fluctuation risk
• Risk of rising raw material prices
• Risk of trade conflict

Mitigation Strategies

• Strengthen its development in overseas market and foreign exchange settlement regulation, to hedge and reduce the impact of exchange rate fluctuations on the Company's performance.
• Strengthen procurement and cost control, establish strategic cooperative relations with suppliers and sign long -term agreements to absorb the risk of raw material price fluctuations. Optimize the product mix, strengthen the R&D of new products, and rely on innovative products to set reasonable prices and maintain the product gross margin.
• Pay close attention to the international situation, continue to implement the internationalization strategy, promote the construction of overseas manufacturing bases, cultivate overseas supply chains, and establish a global production capacity layout and supply chain system to ensure the stable development of the Company's business.

Supply Chain Management

Climate-Related Risks & Opportunities