Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon emissions by 246.95 tons
• Saved paper by 146.900,000 sheets, equivalent to 7,622 square meters of forest

Social Achievements

• Provided 120 jobs in rural areas
• Improved Wind ESG rating from BBB to A

Governance Achievements

• Upgraded the Board's Strategic Committee to the Strategic and Sustainable Development Committee
• Revised the Board's Strategic and Sustainable Development Committee's Rules of Procedure to include ESG

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the global economic slowdown and inventory destocking in the downstream optical communication market
• Increased depreciation and amortization expenses due to new production facilities
• Increased fixed costs from new production facilities not yet achieving economies of scale
• Fluctuations in the demand for optoelectronic components from downstream applications
• Risks associated with overseas operations
• Product certification risks
• Risks associated with changes in major customers
• Management risks associated with business expansion
• Product quality control risks
• Supply chain risks due to international trade friction and geopolitical conflicts
• Increased expenses from depreciation and amortization, R&D, and sales
• Potential changes in tax incentives and policies
• Exchange rate fluctuations
• Risks of overdue and bad accounts receivable
• Industry competition risks
• Industry policy risks
• Macroeconomic environment risks

Mitigation Strategies

• Developing alternative sourcing strategies
• Improving production efficiency and product yield
• Investing in automation of production processes
• Strengthening internal control systems
• Improving investor relations management
• Strengthening ESG system construction
• Improving cash management
• Establishing a financial shared service center
• Improving the collection mechanism for accounts receivable
• Establishing a customer credit system
• Strengthening customer access management
• Optimizing customer resources
• Optimizing financial structure
• Improving production process management
• Improving quality control levels
• Strengthening risk control and risk resistance
• Improving the comprehensive quality management system
• Building a reliability testing laboratory
• Implementing a comprehensive quality management system
• Strengthening internal training and external learning opportunities
• Developing a talent cultivation method suitable for the company's development
• Creating a positive learning atmosphere
• Investing in R&D to maintain technological advantages
• Integrating GouMax team and company's technical team
• Promoting mass production of key new products
• Expanding overseas markets
• Optimizing production process management
• Improving production automation level and finished product rate
• Strengthening quality control
• Improving the reliability testing laboratory

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Selection of qualified suppliers based on production capacity, production process, delivery cycle, and product quality control

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO9001:2015, ISO14001:2015, ISO45001:2018, IATF16949:2016, ISO13485:2016

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• National High-tech Enterprise
• National-level Specialized, Refined, and Innovative "Little Giant" Enterprise
• National Intellectual Property Advantage Enterprise
• Fujian Provincial Science and Technology Little Giant Leading Enterprise
• Fujian Provincial "Specialized, Refined, and Innovative" SME
• Fujian Provincial Future "Unicorn" in the Digital Economy Field
• Fujian Provincial Intellectual Property Advantage Enterprise