Climate Change Data

Environmental Metrics

Governance Achievements

• Successfully passed the AEO advanced certification from the customs, becoming the first integrated circuit design company in Wuxi to obtain this certification.

Climate Goals & Targets

Environmental Challenges

• Fluctuations in the industry development.
• Market competition and shrinking profit margins.
• Changes in the international political situation.
• Risks related to 5G and domestic substitution.
• Uncertainty of the novel coronavirus pneumonia epidemic.
• Supply chain delivery risks.
• Insufficient human resources and talent loss.
• Management risks brought about by rapid growth.
• Risks of changes in business model.
• Risks of core technology leakage.
• Risk of declining gross profit margin.
• Environmental pollution risks.
• Risks of technological innovation.
• Risks of lagging technology and process development.
• Intellectual property risks.
• Exchange loss risks.
• Risks of receivables not being collected in time.
• Inventory impairment risks.
• Changes in tax preferential policies.
• Risks of increased depreciation expenses.
• Risks of project benefits not meeting expectations.
• Management and organizational risks of multiple project implementations.
• Other financial risks.

Mitigation Strategies

• Closely monitor and study the trend of international political situation, actively and flexibly adjust market strategies and business management strategies, and enhance the company's risk resistance ability.
• Closely follow the development of international epidemic, take corresponding measures, find and create opportunities in difficulties, and actively cope with the impact of the epidemic.
• Strengthen the cooperation with existing suppliers while actively developing and cultivating new supplier resources, and through various methods such as jointly developing advanced technologies with suppliers and integrating high-quality supply chain resources, lay a solid foundation for the continuous and stable supply of the supply side.
• Further establish a more flexible supply chain system and build a more solid and efficient product supply chain.
• Strengthen the construction of the research and development team, introduce high-end professional talents, and make talent reserves for the company's long-term development.
• Improve the company's business management methods and management level to meet higher standards, and put forward higher requirements for the coordination, strictness, and continuity of the work of various departments.
• Improve the enterprise management methods, improve the management level, and adjust the management system according to the development status of the business scale.
• Continuously increase investment in research and development, strengthen the construction of technology and production platforms, and promote continuous breakthroughs in innovation achievements through new business models.
• Strengthen the company's comprehensive strength and the vertical development of integrated design and manufacturing of key products.
• Implement strict protection measures, such as patent application to protect its own intellectual property rights.
• Actively and flexibly adjust market strategies and business management strategies, and enhance the company's risk resistance ability.
• Strictly implement environmental protection laws and regulations, increase environmental protection investment, and strive to ensure the normal operation of environmental protection facilities to ensure compliance with emission standards.
• Continuously invest in key technologies and resources, strengthen the transformation of technological innovation achievements, maintain and expand technological advantages.
• Strengthen the company's ability in material procurement, product design, and quality control.
• Develop a long-term capacity planning strategy with suppliers, set up production and testing lines, purchase core key equipment, and lock hardware expansion capabilities to ensure capacity needs.
• Introduce new suppliers in a timely manner, and diversified supplier management makes the company's cost management more flexible and spacious.
• Conduct prudent feasibility studies and sufficient market research on projects, and believe that projects can achieve good economic benefits.
• Improve the company's organizational and management level to meet higher requirements.
• Improve human resources, legal, and financial management capabilities according to the development of business.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon emissions by 27.76 tons of CO2 equivalent through energy savings of 35,040 kWh.
• Achieved 100% water resource reuse rate.
• Reduced water discharge by 1,100 m³/d (50% of total water volume).

Social Achievements

• Launched employee well-being programs including a new dormitory and canteen.
• Established a 60 million RMB interest-free loan pool for employee housing.
• Conducted various employee engagement activities such as sports competitions and cultural events.

Governance Achievements

• Improved board composition and enhanced board committee operations.
• Strengthened risk management and compliance training.
• Enhanced intellectual property protection.

Climate Goals & Targets

Environmental Challenges

• High energy consumption in chip manufacturing.
• Potential environmental risks associated with water usage.

Mitigation Strategies

• Increased renewable energy usage.
• Implemented closed-loop water recycling systems.
• Invested in wastewater and solid waste treatment systems.

Supply Chain Management

Supplier Audits: 230 suppliers trained

Responsible Procurement

• Green procurement practices
• Supplier environmental and social responsibility assessments
• Compliance with RoHS & REACH standards

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, CASS-ESG 5.0, GB/T36001-2015, ISO 26000, UN SDGs

Certifications: ISO 9001, QC08000

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through energy efficiency improvements, sustainable supply chain practices, and community engagement.

Awards & Recognition

• 2022 Jiangsu Private Enterprise Innovation Top 100 (26th place)
• 2022 Binhu District Manufacturing Sales Top 10 Enterprises

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced carbon emissions by 4,878 tons of CO2 equivalent through energy savings of 4,946,300 kWh
• Increased water reuse rate to 100%
• Reduced wastewater discharge by 480 m3/d (18% of total water usage)
• 100% of raw materials comply with RoHS regulations
• 100% of products comply with REACH environmental standards

Social Achievements

• Achieved 9.27 out of 10 customer satisfaction score
• Total employee training hours: 64,455 hours (average 37 hours per employee)
• Total charitable donations: 8910,000 RMB
• Organized various employee activities with 3320 participants
• Conducted 65 environmental, health, and safety trainings with 100% employee coverage

Governance Achievements

• Obtained A-level rating in Shenzhen Stock Exchange's information disclosure annual assessment for three consecutive years
• Established a three-level ESG management structure (decision-making, planning, and execution)
• Implemented a comprehensive internal control system
• Achieved ISO27001 information security management system certification
• Achieved ISO14001 and ISO45001 certifications

Climate Goals & Targets

Environmental Challenges

• Information security risks from both internal and external threats
• Potential risks associated with the use of hazardous chemicals in production
• Incomplete supplier social responsibility management system
• Potential environmental impacts from factory expansion

Mitigation Strategies

• Implemented network isolation and access control measures
• Established a comprehensive chemical safety management system
• Implemented a supplier management platform (SRM) for online interaction and training
• Established a comprehensive EHS management system and conducted regular risk assessments

Supply Chain Management

Supplier Audits: Annual audits of supplier management systems

Responsible Procurement

• Supplier control procedures
• Supplier performance review standards
• Product environmental agreement
• Conflict minerals management

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, CASS-ESG5.0, GB/T36001-2015, ISO26000, UN SDGs

Certifications: ISO 14001, ISO 45001, ISO27001, ISO22301:2019

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• National Intellectual Property Advantage Enterprise
• Wuxi Charity Award
• Red Cross Contribution Award
• Outstanding Contribution Award
• Wuxi Manufacturing Sales Top Ten Enterprises
• Environmental Demonstration Enterprise