Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Business Operations
• Employer Practices
• Governance

Environmental Achievements

• Reduced carbon emissions by over 6,000 tons in Nanchang and Dongguan manufacturing centers through energy-saving technology improvements, clean energy utilization, and other measures.
• Developed cold plate liquid cooling technology and reliable immersion liquid cooling technology for servers and switches in data centers, reducing power consumption by over 30-40% and decreasing carbon emissions significantly.

Social Achievements

• Shipped over 220 million units in 2021, with smartphones, tablets, and laptops topping the global ODM/IDH industry.
• Established the Huaqin Special Care Fund for environmental protection, disaster relief, and various charitable activities.
• Organized a wide range of charitable activities in 2021, supporting local communities and long-term charitable projects.
• Implemented employee wellbeing initiatives including canteens, convenience stores, ATMs, dormitories with amenities, and various employee clubs.

Governance Achievements

• Established a legal and compliant institutional framework that satisfies the needs of actual operations, consisting of the Shareholders' Meeting, the Board of Directors, the Supervisory Committee, and special committees.
• Implemented a comprehensive internal control system, with an unqualified audit report on the Company's internal control issued by Da Hua Certified Public Accountants.
• Strengthened internal audit and completed 14 audit projects in procurement, finance, and operations; handled over 10 complaint and report cases.

Climate Goals & Targets

Environmental Challenges

• Ongoing pandemic
• Raw material shortage
• Power rationing measures
• Exchange rate fluctuations

Mitigation Strategies

• Developed policies and processes in procurement, manufacturing, and logistics, backed by HR, finance, legal, and IT departments.
• Established a multi-site manufacturing strategy with backup capabilities.
• Implemented digital transformation to improve efficiency and decision-making.

Supply Chain Management

Supplier Audits: Joint field audits by R&D, procurement, and quality departments

Responsible Procurement

• Supplier relationship management (SRM) system
• CSR management system based on UNGP, OECD Guidelines, ILO Guidelines, RBA Code of Conduct, and JAC Guidelines
• Requirement for suppliers to sign and abide by CSR system encompassing labor standards, safety and health, environmental protection, business ethics, and management systems.
• Regular performance assessments of suppliers on costs, delivery, quality, and CSR fulfillment.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and technologies (e.g., liquid cooling for data centers)

Reporting Standards

Frameworks Used: GRI Standards (Core option)

Certifications: ISO27001 (information security management system), ISO45001 (occupational health and safety management system), ISO14001 (environmental management system), Level-2 safety standardization certification, Responsible Business Alliance (RBA) certification

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy-efficient data center cooling technologies

Awards & Recognition

• Ranked 18th among China's Top 100 electronic information companies
• Pudong New Area Outstanding Contribution Award for Private Enterprises
• Jiangxi Province Meritorious Enterprise of the Year
• Top 500 Private Enterprises in China
• Top 500 Private Manufacturing Enterprises in China
• Top 30 Best Practices in Human Resources Informatization in China
• China Best Employer Award 2021
• Top Graduate Employers 2021
• Most Influential Employers 2021

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced energy consumption by 34 million kWh through energy conservation measures
• Reduced water consumption by 52,800 tons through water-saving measures
• Achieved 96% recycling rate of solid wastes
• Built 19.5 MW distributed photovoltaic facilities, contributing to a 6.63% clean energy rate
• Invested approximately RMB 78.00 million in R&D related to green products and clean technologies, winning 74 new patents

Social Achievements

• Invested over RMB 7.84 million in internal and external public welfare activities, operating 32 public welfare projects benefiting over 60,000 persons
• Won several employer brand awards
• No incidents of human rights infringement and discrimination
• 100% participation rate in low-carbon training

Governance Achievements

• Established a four-level sustainable development management structure
• Passed ISO 27001 information security management system certification
• Rated as a National Intellectual Property Demonstration Enterprise
• Held 3 Shareholders’ Meetings, 6 meetings of the Board of Directors, 6 meetings of the Supervisory Committee

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to extreme weather, market supply, and demands
• Increased costs and expenses due to higher requirements on renewable energy and energy efficiency
• Possible increase in operating costs after the launch of a national carbon market
• Potential risks from extreme high temperatures/drought, extreme coldness, and strong floods

Mitigation Strategies

• Established secondary resources to avoid the risk of supply from a single supplier
• Adjusted the energy structure and signed long-term cooperation agreements with power supply companies
• Implemented water conservation measures, including wastewater recycling
• Carried out energy conservation projects and used advanced energy-efficient equipment
• Strengthened the contingency mechanism to improve the Company’s resilience in operation

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements
• Sunshine Integrity Agreement
• Corporate Social Responsibility Commitment

Climate-Related Risks & Opportunities

Physical Risks

• Extreme high temperatures/drought
• Extreme coldness
• Strong floods

Transition Risks

• Policies and regulations at production sites imposed higher requirements on the proportion of renewable energy in use and the energy efficiency of equipment
• Increased costs due to response to climate change by additional investments in energy conservation and carbon reduction
• Major mineral countries tighten regulations on mineral extraction and export

Opportunities

• Participate in renewable energy plans
• Establish carbon management regulations
• Improve water resource management performance
• Improve the Company’s electricity consumption efficiency

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (GRI Standards), ISO 26000:2010, GB/T 36001-2015, Shanghai Stock Exchange 2030 Sustainable Development Goals of the United Nations (SDGs), TCFD

Certifications: ISO 14001, ISO 45001, ISO 27001, BSCI, SA 8000, RBA, UL 2799, IATF 16949, ISO 13485, ISO 50001

Third-party Assurance: SGS

Sustainable Products & Innovation

• Comprehensive solution to improve the energy efficiency for new energy vehicles
• Intelligent vehicle control unit (VCU)
• Heat dissipation technologies for machine rooms
• Data center power supply
• Energy-efficient products
• Products with recurring properties

Awards & Recognition

• No. 213 in the 2023 Fortune China 500
• No. 16 in the Top 100 Competitive Enterprises of Electronic Information Companies in 2023
• 2023 CSR CHINA TOP100
• 2023 National Technological Innovation Demonstration Enterprise
• 2023 National Intellectual Property Demonstration Enterprise
• 2023 China MIKE Award