禾迈股份:禾迈股份2022年环境、社会及管治报告（英文版）

REPORTING MESSAGE FROM THE MAINTAINING
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE
CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 1REPORTING MESSAGE FROM THE MAINTAINING CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE ESG PERFORMANCE APPENDIX 2OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
REPORTING INSTRUCTIONS 01 ABOUT HOYMILES INC. 03
MESSAGE FROM THE MANAGEMENT 02 ESG MANAGEMENT 07
0102030405
SPECIAL TOPIC: BOOSTING THE MAINTAINING
DEVELOPMENT OF SOLAR POWER
COMPLIANCE CO-BUILDING PROTECTING THE POOLING THE POWER AND PROMOTING THE REALIZATION OF
THE CARBON PEAKING AND CARBON OPERATIONS LONG-TERM VALUES GREEN ENVIRONMENT OF RESPONSIBILITY
NEUTRALITY GOALS
PROMOTING INDUSTRIAL 10 UPGRADING THE LEVEL OF 21 INDEPENDENT INNOVATION 28 ACTIVE ENVIRONMENTAL 37 ENABLING INCLUSIVE GROWTH 43
DEVELOPMENT GOVERNANCE MANAGEMENT FOR EMPLOYEES
PRODUCT QUALITY MANAGEMENT 33
EXPANDING GLOBAL PRESENCE 14 ENSURING INFORMATION 23 CREATING A GREEN BASE 39 PAYING BACK TO SOCIETY 49
OPTIMIZING CUSTOMER SERVICES 34
SECURITY
SUPPORT RURAL DEVELOPMENT 19
STRENGTHENING SUPPLY CHAIN 25
MANAGEMENT ESG PERFORMANCE 50
APPENDIX 52REPORTING MESSAGE FROM THE MAINTAINING CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE ESG PERFORMANCE APPENDIX 01OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
Reporting instructions
This is the first Environmental Social and Governance (ESG) Report of Hangzhou Hoymiles Power Data description
Electronics Inc. (“Hoymiles Inc.” “the Company” or “we” in short). Hoymiles Inc. values communication with
stakeholders and hopes that the release of this report would enable all parties to understand Hoymiles Inc.’s The financial data herein are drawn from the 2022 annual report of Hoymiles Inc. In case of any inconsistency
actions and achievements in ESG related fields. between the financial data in this report and the annual report the annual report shall prevail. Other data
come from the internal documents and relevant statistics of Hoymiles Inc. The monetary amounts involved in
The Company promises that there are no false records misleading statements or major omissions in the this report are measured in RMB unless otherwise specified.contents of the report and the Board of Directors of the Company is responsible for the authenticity accuracy
and completeness of the contents.Language description
Reporting scope This report is prepared in simplified Chinese and English. In case of any ambiguity in understanding the two
versions please refer to the simplified Chinese version.Scope of organization:
This report focuses on Hoymiles Inc. covering all subsidiaries within the scope of consolidation of financial
statements. Accessibility
Reporting time range:
This report is an annual report covering the period from January 1 2022 to December 31 2022 (referred to This report is released in electronic form. For online browsing or downloading please visit the websites of
as the “reporting period”) with some contents beyond the above time range. Hangzhou Hoymiles Power Electronics Inc. (http://www.hoymiles.com/) or Shanghai Stock Exchange (https://
www.sse.com.cn/).Basis of preparation Contact information
This report is prepared with reference to the China Securities Regulatory Commission’s Corporate Governance Securities Department Hangzhou Hoymiles Power Electronics Inc.Guidelines for Listed Companies Guidelines of Shanghai Stock Exchange for the Application of Self-Regulation Address: Floor 6 Building 5 Shunfeng Innovation Center Gongshu District Hangzhou Zhejiang Province
Rules for the Listed Companies on the SSE STAR Market No.1 – Regulated Operation Guidelines of Shanghai Postal code: 310015
Stock Exchange for the Application of Self-Regulation Rules for the Listed Companies on the SSE STAR Market Tel: 0571-28060318
and the Global Reporting Initiative’s GRI Standards. Fax: 0571-28056101
E-mail: dongmiban@hoymiles.com.REPORTING MESSAGE FROM THE MAINTAINING CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE ESG PERFORMANCE APPENDIX 02OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
Message from the management
Expand global presence to build an international brand. Hoymiles Inc. compliance management and transparent operation to guarantee the
is always committed to our strategic goal of global development with our Company’s sustainable and high-quality development. At the same time
From 2012 to 2022 the first decade of Hoymiles Inc. is also a products reaching more than 70 countries and regions such as America we effectively protect the legitimate rights and interests of the Company
decade of innovation struggle and perseverance. Ten years of ups Europe and Asia. In 2022 we held the Hoymiles Energy Solutions Tour and shareholders and provide a solid foundation for the sustainable and
and downs ten years of tradition and transcendence we march Exhibition in ten representative cities around the world to present our healthy development of the enterprise. Hoymiles Inc. is committed to
forward hand in hand. From the renovation of the former Zhejiang stable and efficient photovoltaic power generation system solutions. Next establishing an equal mutually beneficial close and stable relationship
University bathhouse to the construction of the Hoymiles Global we will continue to promote the process of our global development by with excellent partners. By constantly improving the supply chain
R&D Center and Smart Manufacturing Base; from obtaining the speeding up product certification in various regions abroad strengthening management system optimizing business processes promoting the
first microinverter certification to the development of a sales and overseas localization and improving global sales. At the same time construction of a sustainable supply chain and working together to create
service network covering more than 70 countries and regions; from we will persist in strengthening the quality and safety management of a sunny honest and transparent supply chain ecology the Company
receiving the first product sales contract to the sales of 1.16 million products and services actively create high-quality products improve our ensures the fairness openness and transparency of the supply chain
microinverters in 2022; from a national high-tech enterprise to a listed smart energy solutions advance our service quality and strive to offer all- management.company on the SSE STAR market... Hoymiles Inc. with a world- round technical support and reliable after-sales guarantee for customers
leading power electronics research and development (R&D) team and around the world. Our green development closely addresses the dual goals of carbon
a core technology platform aspires to become a great enterprise and peaking and carbon neutrality. We actively respond to the national
develop steadily in many aspects such as technological innovation Pay back to the society and highlight our brand’s social responsibility. carbon peaking and carbon neutrality strategy. While providing better
international presence social responsibility compliance and green Committed to the people-centered approach and the concept of mutual products for the new energy industry we continue to optimize our
development. respect we strive to provide employees with a competitive salary and own green performance and simultaneously implement measures for
welfare system fair promotion channels a perfect training system and environmental protection energy conservation and emission reduction
an inclusive working environment promoting the healthy development of at the production end and the operation end to protect the green
employees’ careers and achieving a win-win situation for the Company environment. In 2022 in order to promote industrial green transformationand the employees. Following the national strategy of “Promoting Rural our manufacturing related departments moved to a brand-new greenTechnological innovation promotes industrial development. The Revitalization in an All-round Way” we have invested in and provided intelligent manufacturing base implemented several energy-saving
establishment of Hoymiles Inc. was inspired by a firm belief and vision: technical support for the construction of agricultural complementary projects and introduced a number of automation equipment with an aim
to provide the most competitive products and services for new photovoltaic power stations in many rural areas cooperated with local to accelerate the process of green transformation.power and new energy worldwide and to become a world-class agricultural offices to invest in the construction of such projects actively
smart energy partner. In light of the leading-edge technology in the promoted the three-dimensional value-added utilization of land helped to In the future we will never forget our initial aspiration always follow
photovoltaic sector and our own accumulation in the industry we have achieve a win-win situation for photovoltaic development and agricultural the corporate mission of “making electrical energy smarter” commit
been increasing our investment in product technology innovation and production thus contributing to building a grand blueprint for a great ourselves to providing smart energy solutions to customers around theR&D and constantly improving our technological advancement. By far modern socialist country in all respects. world and keep moving towards the vision of “becoming a world-classwe have been deeply involved in the field of microinverters for ten years partner for smart energy.” Hoymiles Inc. will continue to improve the levelforming an efficient R&D system based on the “Provincial High-tech Compliance ensures the development of the Company. Committed of ESG management implement the concept of sustainable developmentEnterprise R&D Center.” The R&D technology covers microinverters and to the main line of compliance management we establish and improve grow together with all our stakeholders keep our leading strength in
monitoring equipment rapid shutdown devices energy storage inverters our corporate governance structure and system constantly optimize the the new energy industry and contribute to the realization of the goals of
energy storage systems photovoltaic power generation systems and internal control and compliance management mechanism continuously carbon peaking and carbon neutrality and the long-term development of
other fields. improve the comprehensive risk management system and ensure renewable energy!REPORTING MESSAGE FROM THE MAINTAINING CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE ESG PERFORMANCE APPENDIX 03OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
About Hoymiles Inc.Company profile
Hoymiles Inc. (stock code “688032”) is mainly engaged Our core products have been certified by the CSA in
in the research development manufacturing and sales North America the BV in Europe TUV NORD SAA in
of photovoltaic inverters and related products energy Australia the CQC in China among other international
storage related products and electrical equipment and authorities. By the end of December 2022 the
related products.Photovoltaic inverters and related Company held 216 authorized intellectual property
products mainly include microinverters and monitoring rights including 32 invention patents 44 utility model
equipment rapid shutdown devices and photovoltaic patents 8 design patents and 62 software copyrights
power generation systems. Energy storage related and 70 trademarks.products mainly include energy storage inverters
and systems. Electrical equipment in complete set The Company has more than 1100 employees
and related products mainly include high-voltage including 213 R&D professionals accounting for
switchgears low-voltage switchgears and distribution 18.83% of the total employees. Since the inception
boxes. the Company has won many titles such as national
high-tech enterprise Zhejiang high-tech enterprise
Since the establishment in 2012 Hoymiles Inc. relying research and development center national key
on independently developed theoretical achievements software enterprise and photovoltaic manufacturing
such as circuit topology and control algorithm has built industry standard enterprise of the Ministry of Industry
a number of power electronic inverter development and Information Technology. Yang Bo General
platforms including microinverters and module Manager of the Company won the second prize of
level inverters. The Company keeps optimizing the the National Natural Science Award in 2016 for hisperformance reliability and cost of photovoltaic “Regulation Mechanism and Topology Derivationinverter products launching a number of products with Principle of High Step-Up Power Converters.” The Company held
high market competitiveness. The Company has by far The Company has more than
emerged as one of the enterprises with considerable Committed to becoming the leading supplier of
advantages in technology and market in the field of photovol ta ic products global ly the Company 216 1100 employees
microinverters and our products are widely used perseveres in independent innovation and R&D to authorized intellectual property rights
in the field of global distributed photovoltaic power drive the Company’s sustainable development with
generation systems with customers all over America technological innovation always providing customers
Europe Asia and other regions. with the best products and services.REPORTING MESSAGE FROM THE MAINTAINING CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE ESG PERFORMANCE APPENDIX 04OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
Company culture
10th anniversary of Hoymiles Inc.: Since 2016 Hoymiles Inc. has been focusing on the field of Most people in the R&D team of Hoymiles Inc. still maintain
Persistence distributed photovoltaic systems and realizing innovations in Passion their aspirations to make R&D breakthroughs and create
and module-level power electronics technology. After ten years andSeptember 4 2022 marked the tenth anniversary better products and technologies. In the meantime Hoymiles concentration
of Hoymiles Inc. Over the past decade more and of intensive and meticulous development Hoymiles Inc.’s
specialization staff are really keen on this technology this discipline and
more employees partners and suppliers have module-level technologies and products have been widely this direction. How to make better microinverters how to
joined the “Journey to Open Energy” growing used in global distributed photovoltaic power generation provide integrated services for customers etc. which are
up together with the brand overcoming various systems. always Hoymiles staff’s pursuits.difficulties and witnessing one highlight after
another.Pursuing high-quality products and technologies Hoymiles As a global enterprise Hoymiles Inc. brings togetherEfficiency Inc. has been working hard towards the target of “making Diversity employees from different regions countries and workingand leading world-class products” focusing on technological innovation and backgrounds by shaping a diversified and inclusive corporate
position as an important means of the Company’s production and inclusiveness culture to stimulate the potential of Hoymiles staff to the
development constantly upgrading core technologies greatest extent and to enable every employee to fulfill his/
and optimizing design schemes to provide safe efficient her aspirations and ideals.technologies and products to customers all over the world.Company vision Company mission Company value
Become a world-class partner Make electrical Honesty Responsibility
for smart energy energy smarter Profession High efficiencyREPORTING MESSAGE FROM THE MAINTAINING ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF INSTRUCTIONS MANAGEMENT OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 05
Course of 2013 2015 2017 2019 2021
development Our modular three phase grid- Certified as the State High-tech Raised 28 million USD in Series A Certified as the State Key Software Hoymiles Inc. has
connected PV inverter was Enterprise. funding. Enterprise. officially debuted on
certified by Golden Sun. Hoymiles launched Our microinverter passed the the Shanghai Stock
national leader certification. Exchange STAR
We began R&D cooperation microinverters in the U.S. Our lab became a CSA authorized Market on December
with Japan Fuji Electric Co. Europe and Australia. testing laboratory. 20 2021 with stock
Ltd. Launched MI 1000-1500 one code 688032.of the most cost effective 4 in 1
microinverter in the market.
201220142016201820202022
Hoymiles Inc. was officially Hoymiles Inc.’s Dr. Bo Yang won the second Qualified as a high-tech enterprise Certified as PV Manufacturing Model Launched brand-new HRSD rapid
established as a business. microinverters were certified prize of the State Natural research and development center Enterprises by the Ministry of Industry shutdown series designed for string
by the CSA BV SAA and Science Award. and secured our position as an and Information. PV systems and the new-generation industry leader. Launched the first generation of hybrid energy storage inverters
CQC. Hoymiles Inc. helped write the three-phase microinverter adapted to to upgrade our energy storage
national energy industry-standard industrial and commercial system and solutions.of PV on-grid microinverters and the first generation of hybrid inverter. Listed as the fourth batch of state-optimizers (NB/T 42142-2018 & NB/T level specialized and innovative “Little
42143-2018). Giant” enterprise.
Our 2022
Operating income Net profit attributable to Total assets Sales volume of microinverters Sales volume of monitoring devices
(RMB 10000) shareholders of the listed Company (RMB 10000) (10000 units) (10000 units)
(RMB 10000)
20222022202220222022
153651.2653255.15731773.32116.4119.65
20212021202120212021
79518.5620173.98642296.4040.447.17
YoY growth YoY growth YoY growth YoY growth YoY growth
93.23% 163.98% 13.93% 187.86% 174.06%REPORTING MESSAGE FROM THE MAINTAINING
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE
CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 06
Honors
March 2022 July 2022 July 2022 August 2022 August 2022 September 2022
General Manager Yang Bo was awarded the Top Ten Suppliers of China Excellent 2021 China Excellent Photovoltaic 2022 Excellent Photovoltaic 2022 High-quality Photovoltaic General Manager Yang Bo was selected as one of the
2021 Zhejiang Youth Entrepreneurship Award Photovoltaic Brands · Distributed Brands · Photovoltaic Inverter Enterprises Inverter Enterprise Ten Outstanding Young Talents of Hangzhou
Zhejiang Provincial Committee of the Communist Inverter in 2021 Technology Breakthrough Award World Solar Photovoltaic Industry World Solar Photovoltaic Industry Hangzhou Municipal Committee of the CPC
Youth League International Energy Network National International Energy Network National Expo Guangdong Grandeur Exhibition Expo Guangdong Grandeur Exhibition Hangzhou Municipal People's Government
Zhejiang Provincial Department of Human Energy Research Institute Energy Research Institute Group Co. Ltd. Group Co. Ltd.Resources and Social Security
Zhejiang Youth Federation
January 2023 December 2022 December 2022 November 2022 November 2022 September 2022 September 2022Shortlisted in “2022 Hurun China Jinniu Science and Technology LinkedIn China 2022 Most in B2B 2022 Excellent Photovoltaic General Manager Yang Bo was awarded the State-level specialized and On-site test laboratory ofTop 500” Innovation Award Brand Building Award Microinverter Outstanding Young Entrepreneurs in Yangtze innovative “Little Giant” manufacturers of the Power
Hurun Research Institute China Securities Journal Haikou LinkedIn Photovoltaic Box River Delta in 2022 enterprise Electronics Department of
Municipal People’s Government China Youth Entrepreneurs Association youth Ministry of Industry and Information Bureau Veritas
Haikou National High-tech Industrial league committees of Shanghai Jiangsu Technology (document) Bureau Veritas
Development Zone Zhejiang and Anhui provinces and youth
entrepreneurs associations of the four placesREPORTING MESSAGE FROM THE MAINTAINING ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF INSTRUCTIONS MANAGEMENT OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 07
ESG management Support the following goals through cutting-edge SDGs Hoymiles Inc.’s important measures products and technical services
ESG management concepts Prioritize employees’ occupational health and safety over all other work strengthen occupational health
and safety guarantee and build an EHS management framework with the ISO45001 occupational health
and safety management system certification.Hoymiles Inc. has always been following the ESG concept of
“Open Energy for All.” By releasing the first ESG report the Establish a comprehensive internal training program system through online and offline training
Company puts forward the ESG vision and objectives and mechanisms so as to provide a platform for employees of different levels and positions to grow rapidly.more profoundly integrates the ESG concept into our strategy
and business. The ESG concept has become an important Support the following goals through sound
guide for our long-term development as we will continuously enterprise management
deepen the practice of sustainable development. Follow the recruitment principles of “openness fairness and justice” and stick to equal pay for equal work.Our ESG vision: strengthen R&D and innovation and boost Provide smart energy solutions for distributed photovoltaic power generation systems at home and
the development of renewable energy and the construction of abroad with a focus on microinverters energy storage inverters rapid shutdown devices and other
a low-carbon society; care for employees’ development offer products in the field of solar photovoltaic power generation.smooth career development channels create an inclusive Implement the low-carbon concept in daily operation and corporate culture development consciously practice green and low-carbon office style and strive to reduce the environmental impact from the
friendly and open workplace and promote the common operational level.growth of employees and the Company; improve the corporate
governance structure adhere to compliance and provide a Create a healthy and harmonious workplace actively promote employee care follow the principle of
strong institutional guarantee for the Company’s high-quality equitable salary and welfare systems effectively protect the salary and welfare levels of employees and
and sustainable development. provide employees with career growth space congruent with their ability and contribution. Support the following goals through active
communication with stakeholders
Keep integrating internal R&D resources constantly increase investment in R&D enhance the ability of
innovation and R&D realize constant technological progress and product iteration.ESG responsibility plan
Attach great importance to the development of the quality management system with the design and
production of main products having passed the ISO9001 quality management system certification;
The 17 sustainable development goals (SDGs) of the promote clean production reduce the discharge of various pollutants and mitigate the negative impact on
United Nations (UN) with a focus on development issues the environment having obtained the ISO14001 environmental management system certification.in economic environmental and social dimensions identify
common challenges related to poverty inequality climate At present the products of Hoymiles Inc. have supported the installation and operation of many
change environmental degradation and prosperity as well as distributed photovoltaic power generation systems at home and abroad contributing to the scaling up of
peace and justice thus building a beautiful blueprint for the clean energy and the reduction of carbon emissions.sustainable development of all mankind. Hoymiles Inc. has
Stick to honest management strictly promote compliance management constantly strengthen its own
connected our own business development with the UN SDGs
integrity and compliance construction and effectively protect the legitimate rights and interests of the
and constantly deepens our responsibility fulfillment methods
Company and its shareholders.and responsibility management system with a focus on 10
core SDGs as the key development direction of Hoymiles Inc. Pay attention to communication with investors; keep establishing close and stable relations with
based on the Company’s current main products and services outstanding global partners with equality and mutual benefit and continue to promote the construction of
technological development and strategic plans. sustainable supply chains.REPORTING MESSAGE FROM THE MAINTAINING CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 08
Communication with stakeholders ESG issue analysis
Hoymiles Inc. attaches great importance to communication with all stakeholders follows the relevant GRI principles such as Combining the concept of ESG with the characteristics of Hoymiles Inc.’s own
inclusiveness significance and integrity of stakeholders constructs three steps of identification analysis and confirmation development strategy and business activities we carried out the identification
continuously expands communication channels fully listens to the opinions and feedback of stakeholders and takes effective evaluation and screening of ESG issues from the two dimensions internal and
measures to respond to the expectations and demands of stakeholders in a timely and sincere manner and earnestly fulfills the external stakeholders from the end of December 2022 to mid-January 2023 by
ESG related responsibilities. issuing questionnaires. After being reviewed by the Company’s management 18
ESG topics significant to the Company and stakeholders were identified about which
key disclosures and responses are made herein.Stakeholders
Government Shareholders and Clients Employees Suppliers and partners Communities
investors Environmental issues Social issues Governance issues
Corporate Corporate Consumers’ Occupational Compliance Social welfare Environment management Employment Supply chain Perfecting corporate
governance governance rights and health and safety Win-win Social system Protection of management governance system
Compliance R&D and interests Staff outcomes responsibility Pollution control employees’ rights Responsible Strictly abiding by Energy consumption and interests procurement compliance management
Main Risk innovation Quality of development Supply chain management Occupational health Social welfare Ensuring information
concerns management Consumers’ products and Inclusiveness management Development of clean and safety Product quality and securityenergy products Staff development safety Intellectual property rights
R&D and rights and services Employees’ Building green production and promotion Strengthening R&D (IPR) protection
innovation interests Information rights and bases and innovation
Green Risk security interests
operation management Risk
Social Transparency management
responsibility Compliance Perfecting corporate governance system Development of clean Protection of
Strictly abiding by compliance management energy products employees’ rights and
Ensuring information security Product quality and interests
safety Occupational health
Pay taxes Carry out site Improve the Standardize Communicate with Carry out Strengthening R&D and safety
according to investigations customer employment and partners as a routine charitable and innovation Staff development
law and performance satisfaction survey respect human rights Cooperate and donations
IPR protection and promotion
Observe briefings release and complaint Expand employee communicate with Provide voluntary
laws and regular reports management development peers services Countermeasure mechanisms channels Conduct fair
regulations and information Improve service Provide equitable and transparent
Innovate announcements Energy consumption management Building green production baseslevel and product salary and welfare procurement principles Pollution control Supply chain management
technologies etc. quality Provide a healthy and procedures Environmental management system Responsible procurement
and products Ensure data security and safe work Implement responsible Social welfare Employment
and protect personal environment procurement
information
Materiality of ESG issues to Hoymiles Inc.Materiality of ESG issues to external stakeholdersREPORTING MESSAGE FROM THE MAINTAINING CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 09
01
SPECIAL TOPIC: BOOSTING THE DEVELOPMENT
OF SOLAR POWER AND PROMOTING THE
REALIZATION OF THE CARBON PEAKING AND
CARBON NEUTRALITY GOALS
In recent years in the face of the increasingly prominent conflicts between energy resource consumption and
environmental protection many countries in the world have actively set the goals of carbon peaking and carbon
neutrality after signing the Paris Agreement and accelerated the development and utilization of renewable energy
to replace traditional energy. Being “clean low-carbon stable safe and efficient” solar photovoltaic power will play
a pivotal role in building a new power system mainly composed of new energy.Hoymiles Inc. continuously supports and practices global green actions implements the Chinese government’s
decisions and plans on carbon peaking and carbon neutrality goals and makes efforts in many aspects such as
boosting photovoltaic development promoting product innovation supporting rural development and expanding
global presence to enhance the Company’s ability to support carbon peaking and carbon neutrality and help
achieve low-carbon transformation and development of the economy and society.REPORTING MESSAGE FROM THE MAINTAINING ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF INSTRUCTIONS MANAGEMENT OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 10
Promoting industrial
development Microinverters and monitoring equipment
Safe and reliable Flexible adjustment Easy to monitor
Hoymiles Inc. specializes in microinverters
wi th related products energy storage The microinverters have a very low failure rate The microinverters are divided into 1-in-1 2-in- Hoymiles Inc. has developed DTUs to collect
inverters energy storage systems rapid and provide built-in surge protection function. 1 4-in-1 and 6-in-1 inverters according to the microinverter operation data suitable for all kinds
shutdown devices and other products in the Data transfer unit (DTU) records can be used number of connected photovoltaic modules which of photovoltaic systems. Users can monitor power
field of solar photovoltaic power generation to accurately locate the fault points which is is each microinverter can be connected with one to generation on the S-Miles Cloud platform easily
prov id ing smar t energy so lu t ions fo r conductive to efficiently completing after-sales six solar panels with the power output increasing realizing module-level monitoring. At the same
photovoltaic power generation systems at operation and maintenance. accordingly to adapt to different application time the microinverters are equipped with external
home and abroad. Hoymiles Inc. in the light requirements and scenarios. Our microinverters antenna with stronger telecommunication ability
of the latest cutting-edge technology and its can be flexibly installed according to the layout of able to realize more stable monitoring.own experiences in the industry and with a the whole system and modules.focus on the R&D of hardware circuits and S-Miles Cloud A third-party
platform
software algorithms continues to reform the
existing circuits and algorithms. In addition
the Company is developing and landing
products in the form of projects to realize
the R&D of new products and technologies
for power electronics enhance the ability
of independent innovation and constantly
improve the performance of the Company’s Microinverter Electricity
meter
products thus boosting the development of
the solar photovoltaic industry. Working diagram of DTUs Portfolio of inverters and DTUs Diagram of S-Miles Cloud
Easy to install Efficient operation Energy compliance
Hoymiles Inc.’s plug-and-play microinverters start The peak efficiency CEC efficiency and dynamic The microinverters have obtained more than 1000
the solar photovoltaic power generation system maximum power point tracking (MPPT) efficiency of certifications worldwide and their product performance
faster and can be put into operation more quickly. the microinverters reach 96.7% 96.5% and 99.8% and safety quality have been affirmed by authoritative
respectively which can convert more solar module organizations in Europe North America Latin
capacity into usable electric energy. America Asia-Pacific and other regions.REPORTING MESSAGE FROM THE MAINTAINING CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 11
Rapid shutdown devices Energy storage inverters
In 2022 Hoymiles Inc. launched a brand-new product module- Safety and compliance The energy storage inverter is the core device of the energy
level rapid shutdown device. The shutdown system products are storage system. With its characteristics of energy storage and
used in conjunction with traditional series inverters and centralized Hoymiles Inc.’s shutdown system products have passed certifications energy transfer in time and space it can effectively adjust the
inverters including shutdown devices transmitters and other products. such as NEC2017/2020 UL1741 SunSpec RSD. balance between supply and demand of the power supply system
and play different roles in different application scenarios.Rapid shutdown
Based on self-developed technology Hoymiles Rapid Shutdown Multi-mode switching
Device (HRSD) offers industry-leading rapid shutdown functionality
that can cut off the high voltage in the DC side within 30 seconds after Hoymiles Inc. has introduced single-phase and three-phase hybrid
being initiated to reduce the electrical voltage of solar panel systems to and AC coupled energy storage inverters according to the types
safe levels in case of emergency ensuring the safety of people’s lives of power grid batteries to be matched and system structures
and property. such as HYS-LV-G1 series HAS-LV-G1 series HYT-HV-G1 series
and HAT-HV-G1 series with each series covering multiple power
Real-time monitoring models to meet the needs of different applications. Moreover the
Hoymiles Inc.’s rapid shutdown devices will realize module-level Working diagram of shutdown products inverters come with a smart energy management system (EMS)
monitoring functions afterwards able to monitor the voltage current that can switch four modes: photovoltaic storage battery power
power and other information at module level realize accurate grid and generator meeting different application scenarios by Low noise and stability
positioning through the layout chart and monitor the power generation seamlessly switching power supply modes.status of each module remotely and in real time around the world. The working noise of Hoymiles Inc.’s rapid shutdown devices is far
lower than the “dangerous noise warning line” set in the photovoltaic High efficiency
system under normal circumstances so as to prevent the system from
misjudging and emergency shutting-off and effectively ensure the Hoymiles Inc.’s energy storage inverters have an industry-leading
stable operation of the photovoltaic system. DC/AC ratio of 1.5 which significantly reduces the cost compared
to other products with the same capacity. The products’ 14A MPPT
Full compatibility current is seamlessly compatible with all household mainstream
photovoltaic modules in the market today. The highest conversion
Hoymiles Inc.’s rapid shutdown products include many series such as efficiency can amount to 97.6% occupying a leading position in the
1-in-1 and 1-in-2 compatible with mainstream photovoltaic modules in market.
market with simple and fast installation. Transmitter products include
1-in-1 and 1-in-2 Transmitter set different forms such as independent installation and waterproof case
shutdown products (waterproof case ) installation able to meet different configuration requirements.REPORTING MESSAGE FROM THE MAINTAINING CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE ESG PERFORMANCE APPENDIX 12OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
Energy storage inverters Energy storage systems
Intelligent operation and maintenance Based on the comprehensive understanding of load characteristics in Smart operation and maintenance
different scenarios the energy storage systems of Hoymiles Inc. are
Paired with DTS-G1 series of energy storage data communication suitable for public utilities large industrial and commercial businesses Infinite parallel connection can achieve flexible expansion and modular
sticks independently developed by Hoymiles Inc. three modes of residential properties buildings data centers communication base maintenance of energy storage power stations. The running data can
operation concerning the energy storage system can be realized stations power plants new energy micro grid and other application be accessed through WIFI 5G LAN and other methods to truly realize
including spontaneous self-use mode economical mode and scenarios combined with the Company’s professional integration and the unmanned operation and maintenance of energy storage stations.backup power supply mode. Intelligent Internet connection can also innovation ability.be realized with real-time monitoring and remote operation and
maintenance realized by monitoring the S-Miles Cloud platform. Safety
Standardized cabinets realize the divisional safety and isolation of
battery systems to ensure the safety and control of energy storage
systems based on single-cell thermal management technology
level 9 active safety monitoring PACK level active safety warning
and immersive fire protection technology.High efficiency Liquid-cooled energy Outdoor liquid- Liquid-cooled energy storage Energy storage inverters storage integrated cooled energy integrated system
Efficient multilevel topology and minimum loss frequency conversion system (cabinet) storage integrated
modulation technology precise liquid-cooled temperature control system
technology as well as PCS and battery voltage optimal fitting
technology make the system efficiency exceeding 91%.Grid friendly
Support primary and secondary frequency modulation high and
low voltage crossing source network load AGC/AVC and inertial
control strategy with grid dispatching power response time less Household energy Battery management Energy management
than 50ms. User side control strategies embedded such as storage batteries system (BMS) system (EMS)
DTS-G1 series of energy storage data communication sticks peaking and valley filling demand control etc. enable each device
to operate independently.REPORTING MESSAGE FROM THE MAINTAINING ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF INSTRUCTIONS MANAGEMENT OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 13
Photovoltaic power generation systems
The photovoltaic power generation system solutions of Hoymiles Inc. assemble the Company’s Operation and maintenance challenges
inverters and monitoring equipment with externally purchased photovoltaic modules brackets
etc. which can be installed directly. Through the multiple guarantees of the Company’s module- Our microinverters are capable of module-level monitoring. It can monitor the voltage current
level power electronics technology the pain points of the current distributed photovoltaic systems power and other information at the module level achieve accurate positioning through online
can be effectively addressed: layout charts remotely monitor the power generation status of each module in real time around the
world and easily locate fault points and types.Safety challenge
Hoymiles Inc.’s microinverters are connected to a photovoltaic system in parallel so that the DC Unstable quality
side in the system is kept at a low voltage of about 40V thus fundamentally precluding the fire
hazard and electric shock risk. Users therefore do not have to worry about fire caused by DC arc Our microinverters adopt mature topology schemes in the power supply industry featuring a
in the microinverter photovoltaic power station. Even if the microinverter system is brought into reliable structure. The aluminum casing is employed to enhance the thermal conductivity of power
an emergency by any external factors after the system is shut down the emergency workers will devices to the casing and reduce the internal thermal stress. The IP67 rating of the shells ensures
not face the risk of electric shock because there is no DC high voltage in the photovoltaic power that the microinverters is waterproof and can be used outdoors. EPCOS lightning protection
station. devices are used which have passed the most stringent 6000V surge lightning strike test in North
America. In addition a 12-year basic warranty is offered which can be extended flexibly to 25
Barrel effect years at most truly realizing worry-free after-sales services.Our microinverters’ module-level MPPT controllers track the maximum power point of each
photovoltaic module respectively. Even if one photovoltaic module is inefficient the MPPT
controllers of other modules will continue to maintain their respective maximum productivity
Microinverter
efficiency thus minimizing the impact on the whole photovoltaic system.Grid
S-Miles Cloud
Web App
Electrical boxREPORTING MESSAGE FROM THE MAINTAINING ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF INSTRUCTIONS MANAGEMENT VALUES ENVIRONMENT RESPONSIBILITY ESG PERFORMANCE APPENDIX 14OPERATIONS
In 2022 Hoymiles Inc.’s products and services saw a good momentum of development. In 2022 the sales
volume of microinverters and monitoring equipment reached about 1.16 million units and about 196500 units Expanding global presence
increasing by 187.86% and 174.06% respectively. By far the products and services of Hoymiles Inc. have
supported the installation and operation of many distributed photovoltaic power generation systems at home Following the strategic plan of global development Hoymiles Inc.’s products have reached more than 70
and abroad contributing to the growth of clean energy scale and the reduction of carbon emissions. countries and regions in America Europe and Asia enjoying high visibility and reputation in the industry.Hoymiles Inc. will continue to promote the process of global development by accelerating product certifications
in various overseas regions strengthening overseas localization and improving the influence of global sales.In 2022 the sales volume of In 2022 the sales volume of Total
microinverters reached about monitoring equipment reached about
1.16 115831.85 million units 196500units (RMB 10000)
Environmental benefits of Hoymiles Inc.’s products 2022 Accumulative total North America Europe
Solar photovoltaic Estimate by shipment 1588 2422 32180.80 57278.28
power generation (RMB 10000) (RMB 10000)
supported by inverters Record by the
(GWh) 661.01 1102.23monitoring platform
Total installed capacity Estimate by shipment 1.747 2.591
of solar photovoltaic
supported by inverters Record by the
(GW) 0.56 1.36monitoring platform Latin America
23847.63 Other regions
Carbon emission Estimate by shipment 1583236 2414734
reduction from (RMB 10000) 2525.14
photovoltaic facilities (RMB 10000)
Record by the
supported by inverters 659024 1098919
monitoring platform
(Ton)REPORTING MESSAGE FROM THE MAINTAINING ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF INSTRUCTIONS MANAGEMENT OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 15
Global product certification Influence of brand
By the end of 2022 Hoymiles Inc.’s microinverters had received over 1000 certifications worldwide with Hoymiles Inc. held a tour exhibition of the Company’s energy solutions in ten representative cities around the
product quality and performance affirmed by many regional authorities in Europe North America Latin world in 2022 in an effort to further promote our green smart energy solutions to the global market and help
America and the Asia-Pacific Region. The series of energy storage products have also passed the grid more and more people use green energy.connection certification in Germany Poland France the UK Australia Austria Pakistan and other important
countries which means that Hoymiles Inc.’s new generation of energy storage products will gradually reach
the globe. 5.11-5.13
Intersolar Europe
6.14-6.16
North America Europe Genera in Spain
New North American Standard IEEE1547-2018 European CE
California CEC efficiency certification California CEC listing European standard EN50549-1: 2019
Hawaiian HECO listing France VFR2019
Germany VDE4105: 2018
Polish grid connection certification PTPiREE
Latin America listing 8.9-8.11
Austrian TOR2019 Solar PV World Expo
Mexico IEEE1547 UL1741 Spanish RD647 8.23-8.25
Brazil’s Anatel certification Inmetro listing Italian CEI 0-21: 2022 InterSolar South America
Asia-Pacific Region
Thailand MEA/PEA grid connection certification
Chinese NB/T 32004-2018REPORTING MESSAGE FROM THE MAINTAINING ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF INSTRUCTIONS MANAGEMENT VALUES ENVIRONMENT RESPONSIBILITY ESG PERFORMANCE APPENDIX 16OPERATIONS
9.6-9.8 Hoymiles Inc. was also invited to participate in the
China Distributed Photovoltaic Conference the
Green Expo in Mexico Malaysian International Photovoltaic Conference the
9.14-9.16 Southeast Asia International Solar Energy Storage Sales Manager of
Renewable Energy in Thailand Hoymiles Inc. in Conference and other industry conferences sharing Asia-Pacific Region
experiences on distributed photovoltaic system safety delivered a speechand intelligent solutions at the conferences to jointly themed “Making EnergySafer and Smarter” at
safeguard and improve the safety of photovoltaic the 2022 Southeast
power stations and contributing to the healthy and Asia International
orderly development of the photovoltaic industry. Solar Energy Storage
Conference.
9.20-9.22
Re+ in the US Typical projects
9.22-9.24
The products technologies and services of Hoymiles Inc. verified by many photovoltaic power generation
Exposolar Colombia projects and trusted by users operate stably from sunrise to sunset delivering high-quality energy year after
year. The photovoltaic power generation systems using Hoymiles Inc.’ microinverters have covered many
countries and regions around the world.Domestic projects
Case BIPV Project in LEADER Group Qingdao Shandong
10.26-10.27 The BIPV project in the Park of Shandong LEADER Technology
All-Energy in Australia Group Co. Ltd. is located in Tianzhuang Town Pingdu Qingdao
10.26-10.28 Shandong Province. The whole system of this project safe and
efficient waterproof and fire-proof features an installed capacity of
Electricity Transformation Canada 8.245 MW an average annual power generation of 8559.6MWh
and an average annual reduction of 8533.92 tons of carbon
dioxide emissions. The roofs of all the industrial plants in the
Park are installed with Hoymiles Inc.’s module-level inverters and
photovoltaic building materials for BIPV which through scientific
overall design realizes natural ventilation natural lighting and new
energy utilization achieving the most economical and reasonable
consumption of energy and resources and the least impact on the an average annual reduction of
environment. The BIPV project not only provides clean energy for
the park but also becomes a local demonstration project of green 8533.92
buildings. tons of carbon dioxide emissionsREPORTING MESSAGE FROM THE MAINTAINING CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE ESG PERFORMANCE APPENDIX 17OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
Case BIPV Project at Anqiu Kangle Hotel International projects
Solar water heaters were originally installed on the hotel roof Case Large photovoltaic power station in South Africa
but due to the high equipment failure rate and unstable hot
water supply the hotel owner changed to a BIPV system to When Hoymiles Inc.’s partner wanted to build an ambitious rooftop
provide hot water for the hotel in the form of electric heating. photovoltaic power station in South Africa they turned to Hoymiles
The BIPV system adopts safe and reliable Hoymiles Inc.’s Inc.’s microinverters which support module-level monitoring
microinverters considering the complex and changeable enabling users to monitor and control the photovoltaic system at any
conditions on the roof. Hoymiles Inc.’s products are small and time while reducing levelized cost of electricity (LCOE). The project
easy to hide and can be installed flexibly in line with the roof was the first of its kind in South Africa and Hoymiles Inc.’s equipment
shape; while the products’ module-level MPPT technology made it possible to build and operate a higher-yielding photovoltaic
is free from the impact of such factors as roof tilt orientation power station than ever before.and shading always tracking the maximum power point. It is
estimated that the installed capacity of the system is 139.1
kW and its average annual power generation capacity is
106.5MWh able to reduce about 106.2 tons of carbon dioxide
emissions every year.Case BIPV Project in Baishui Industrial Park
The project located in Baishui Industrial Park Shaanxi
Province features an installed capacity of 1200 kW.Different from traditional industrial and commercial roofs
the project combines Hoymiles Inc.’s microinverters and
photovoltaic building materials for BIPV and followsthe policy of “safety high efficiency and environmentalprotection” perfectly integrating the photovoltaic systems
and buildings realizing both benefits and field application
and promoting the new development of the photovoltaic
industry.REPORTING MESSAGE FROM THE MAINTAINING ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF INSTRUCTIONS MANAGEMENT OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 18
Case A photovoltaic system on a U.S. farm Case Rooftop photovoltaic power station in Brazil
Hoymiles Inc. worked with Red Bar Solar to help a Dicomp Distribuidora a leading distributor and
meat and poultry farmer in central Missouri install technology solution provider in Maringa City
several photovoltaic systems: two 98.8 kW solar Brazil cooperated with Hoymiles Inc. to finish a
systems supplying power to four of the poultry rooftop photovoltaic power station using 50 units
barns a 60.8 kW system supplying power to two of Hoymiles Inc.’s MI-1500 microinverters with
poultry barns and a 22.8 kW system supplying wide DC input operating voltage and low start-
power to an office the house and side businesses. up voltage making the whole system safe and
Hoymiles Inc. also installed four electricity meters efficient and with output power up to 1500 watts
so that the owner could monitor and learn energy suitable for mainstream high-power modules. The
consumption. The total scale of the project is innovative design of the system connecting four
281 kW. With the solid technical and engineering photovoltaic modules independently significantly
expertise of Hoymiles Inc. the energy cost of the saves the installation cost and improves the power
farm has been greatly reduced. generation efficiency of the photovoltaic power
station.Case A commercial renewable energy retrofit project in Nova Scotia Canada Case A rooftop photovoltaic power station project in a villa on Bali Island Indonesia
Hoymiles Inc. partnered with SKYLIT and LG A villa owner on Bali Island Indonesia decided to
Electronics to build a 94.3 kW system for the Old turn the villa into a green property and cut back on
Orchard Inn Hotel and the Convention Centre energy costs by building a 13.2 kW photovoltaic
in Wolfville. Featuring Hoymiles Inc.’s MI series power system. Hoymiles Inc.’s microinverters can
microinverters the system helps provide sufficient help to design an ideal installation scheme by
clean renewable energy to the convention center placing photovoltaic panels on the roof in various
while feeding excess green energy into the local directions which is impossible for traditional series
grid. inverters.REPORTING MESSAGE FROM THE MAINTAINING ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF INSTRUCTIONS MANAGEMENT OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 19
Support rural development Case Agricultural complementary photovoltaic power station in Hunan Town Qujiang District
The project is jointly invested and constructed by
Hoymiles Inc. closely follows the national strategy of “Promoting Rural Revitalization in an All-round Way” to Hoymiles Inc. and the government agency of Qujiang
invest in the construction of innovative agricultural complementary photovoltaic power stations in several rural District with a total land area of more than 4000 mu
areas and provide technical support. This kind of power stations not only feature no pollution and zero emission a total investment of about RMB 595 million a total
but also actively promotes the three-dimensional value-added utilization of land and enables both photovoltaic installed capacity of 85 MW and an average annual
development and agricultural production. At the same time Hoymiles Inc. has cooperated with government power generation of about 82.3 million kWh. The plots
agencies of Qujiang District and Suichang County to invest in the construction of agricultural complementary of the project are mainly mountainous areas and
photovoltaic power stations supporting the grand blueprint for building a socialist modernization country in an photovoltaic technology is employed in the form of
all-round way. agricultural-photovoltaic complementary development
which addresses the weak collective economy in
the reservoir area without compromising the original
Case The household BIPV project in Weiqiao Village Ningxia ecology.The BIPV project in Weiqiao Village Qingtongxia
City Ningxia Hui Autonomous Region is estimated
to have a total installed capacity of 126.75 kW an Case Agricultural complementary photovoltaic power station in Suichang County
average annual power generation of 162700 kWh
and an average annual reduction of 162.24 tons of The project is jointly invested and constructed by Hoymiles Inc. and the government agency of Suichang County
carbon dioxide emissions. This project not only helps with a total land area of 1100 mu a total investment of about RMB 270 million a total installed capacity of 38
rural areas realize energy transformation and achieve MW and an average annual power generation of about 38 million kWh. Most of the project plots are farmland.considerable power generation benefits but also The construction is carried out on the premise of not destroying the original cash crops such as tea and rice. In
becomes a demonstration project for local construction this way not only are the normal revenues of cash crops maintained but also the local electricity consumption
of a beautiful countryside. gap is filled up achieving a win-win integration of photovoltaic development and agriculture.Case 30 MW agricultural complementary photovoltaic power station in Zhoujia Township
The project covers a total land area of 750 mu with a
total investment of about RMB 120 million and a total
installed capacity of 30 MW. Most of the project plots
are irrigated fields converted from dry land. After the
completion of the power station crops are planted
under the photovoltaic panels as usual thus realizing
the development strategy of integrating agriculture with
the photovoltaic power system.REPORTING MESSAGE FROM THE MAINTAINING ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF INSTRUCTIONS MANAGEMENT ESG PERFORMANCE APPENDIX 20OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
02
MAINTAINING COMPLIANCE
OPERATIONS
Since the establishment Hoymiles Inc. has been improving the corporate governance
mechanism consolidating the internal control compliance system upgrading the risk
management level improving the construction of the information security system
enhancing the construction of a sustainable supply chain boosting the steady
improvement of corporate governance and ensuring the Company’s sustained and
stable operation in compliance with laws and regulations.REPORTING MESSAGE FROM THE MAINTAINING CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE ESG PERFORMANCE APPENDIX 21OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
Upgrading the level of governance
The Shareholders’ General Meeting which
decides the major issues of the Company’sHoymiles Inc. has always been following and strengthening the overall leadership of the CPC keeps improving the “three operation and management is the highest In 2022boards and one management” governance structure and promoting the standardization and effectiveness of corporate authority of the Company. In 2022 the the Company held
governance enhances the diversification of the Board of Directors protects shareholders’ rights and interests builds and Company held four shareholders’ general
improves the information disclosure system and communication channels for investors strengthens communication with all meetings. 4 shareholders’ general meetings.stakeholders and promotes the corporate governance and operation mechanisms to improve the governance system.The Board of Directors as the decision-
Strictly abiding by the Company Law of the People’s Republic of China the Code of Corporate Governance for Listed making body of the Company’s major affairs
Companies in China and other laws regulations and relevant regulatory documents the Company has formulated a series takes charge of the Company’s affairs The Board of Directors held the average attendance rate
of rules and regulations such as the Rules of Procedure for the Board of Supervisors the Rules of Procedure for the Board internally and represents the Company’s of the board meetings hitting
of Directors the Rules of Procedure for the Shareholders’ General Meeting the Return-on-Equity Plan for the Next Three business decision-making and execution meetings
Years (2021-2023) the Work Rules for Independent Directors the Work Rules for the Auditing Committee the Work Rules externally. The Company firmly believes
12
for the Nomination Committee the Work Rules for the Remuneration and Appraisal Committee and the Work Rules for the that the diversification professionalism and 100%
Strategy Committee. The Company has also established a corporate governance structure consisting of the Shareholders’ independence of the Board of Directors are
General Meeting the Board of Directors the Board of Supervisors and the management effectively improving the company’s of great importance to improve the strategic
management and operation levels. decision-making level of the enterprise and
reduce operational risks. As of the end of By the end of December 2022
December 2022 the Board of Directors
The Company’s organizational structure Shareholders’ General of the Company consisted of 9 directors the Board of Directors of the including
Meeting Strategy Committee including 3 independent directors. In 2022 Company consisted of
the Board of Directors held 12 meetings. All 3
the Board of Supervisors Nomination Committee directors actively attended the meetings and directors independent directors
performed their duties diligently during the 9
Secretary of the Board the Board of Directors Remuneration and year with the average attendance rate of the Appraisal Committee
board meetings hitting 100%.General Manager Auditing Committee The Board of Supervisors the supervisory body of the Company is accountable to and reports its work to the
Shareholders’ General Meeting. By the end of December 2022 the Board of Supervisors of the Company was composed
Deputy General Manager of three supervisors including one employee representative supervisor and one external supervisor. In 2022 the Board
of Supervisors held a total of 11 meetings.By the end of December 2022
The Board of Supervisors of the In 2022 the Board of
including
Company was composed of 1 1 Supervisors held a total of
employee representative external
3 supervisors supervisor supervisor 11 meetings
Infrastructure Construction
Department
Administrative Center
Human Resource
Center
Financial Center
Product Quality Center
Manufacturing Center
R&D Center
Marketing Department
Overseas Marketing
Center
Domestic Marketing
Center
Securities Investment
DepartmentREPORTING MESSAGE FROM THE MAINTAINING ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF INSTRUCTIONS MANAGEMENT OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 22
Proactive information disclosure Strictly observe the compliance Risk management
bottom line
As a listed company on the SSE STAR Market Hoymiles Inc. pays attention to the management and prevention of risks regarding policies markets customers
Hoymiles Inc. has formulated such systems as the finance laws teams and natural disasters adheres to the concept of prudent and steady risk management and Hoymi les Inc . s t r ic t l y advances compl iance
Information Disclosure Management System the takes appropriate measures to address different risks and carry out whole-process risk management including management continuously strengthens the Company’s
Management System of Information Disclosure purchasing product liability insurance global cargo insurance and export credit insurance to ensure the Company’s integrity and compliance by improving compliance
Suspension and Exemption the Management System sustained and high-quality development.management policies and systems optimizing
of External Information Submission and Use and the compliance management processes and mechanisms
System of Internal Reporting of Major Information and and exploring best compliance management practices
implemented the Company’s information disclosure Risk type Countermeasuresand strictly implements relevant systems to provide
management system in accordance with the five basic a solid foundation for the sustained and healthy
principles of truthfulness accuracy completeness Improve product competitiveness through constant cost reduction adjust development of the enterprise.timeliness and fairness. The Company discloses Policy risk product and marketing structures and expand market through multiple channels to ensure the sound development of the Company.information in various aspects in time through multiple
channels such as the information disclosure website With regard to systematic risks the Company enhances its ability to resist risks
designated by the Shanghai Stock Exchange major Clean and honest administration Product market by constantly upgrading product quality and improving enterprise management.designated media (Shanghai Securit ies News risk Committed to brand promotion maintain the Company’s unique characteristics
Securities Times China Securities Journal Securities Hoymiles Inc. adheres to honest management Market risk and brand image and improve competitiveness through the brand effect.Daily and Economic Information Daily) performance strictly abides by laws and regulations such as the Strengthen corporate compliance governance enhance multi-channel
briefings investor exchange meetings and other Law of the People's Republic of China on Anti- Capital market risk communication with investors and protect the rights and interests of minority
channels to ensure the truthfulness transparency money Laundering and the Anti-Unfair Competition shareholders.completeness and accuracy of the information. Law of the People's Republic of China and issues
the Integrity Management System which regulates Customer choice Gain preliminary understanding of and conduct investigation on customers and
risk classify them for management.Protection of investors’ rights the Company’s own behavior with high standards of business ethics and actively strengthens the internal
and interests integrity management. At the same time Hoymiles Inc. Customer risk Customer Constantly improve product quality and conduct whole-process services to
also signed the Sunshine Agreement with suppliers satisfaction risk improve customer satisfaction.Hoymiles Inc. fully respects the rights and interests and the Integrity Agreement with employees to make
supervision concrete and normalized creating a clean Customer credit By setting indicators classify customers for management and determine their of investors strives to safeguard investors’ right to
and honest business ecology and building stable risk credit level according to different client categories.know participate and benefit and actively creates
conditions for the exercise of their rights. Hoymiles Inc. healthy and sustainable partnerships. By formulating an internal regulatory system strengthen the management of
has formulated the Investor Relations Management Financial risk financial risks from the aspects of financial fund safety and accounting standard.System. In 2022 the Company communicated with In October 2022 Hoymiles Inc. carried out integrity
investors through on-site research brokerage strategy training for the personnel in the Company at the
Legal risk Establish a legal department add legal review to all aspects of the Company’s meetings online teleconferences performance middle-level and above. At the meeting the Company’s operation and reduce related legal risks.briefings Hoymiles Inc.’s official website and WeChat attitude of zero tolerance for corruption was clarified
official account etc. fully listened to investors’ opinions and the “seven red lines” was emphasized including Through an effective performance appraisal system standardize employees’
and suggestions answered investors’ concerns in prohibiting abuse of power corruption and bribery Team risk work define the corresponding objectives and listen to employees’ demands
time and effectively protected investors’ legitimate favoritism fraud disclosure of technical information in daily management. Through internal training constantly enhance employees’
rights and interests. and business secrets of the Company. professional competence and management capabilities.REPORTING MESSAGE FROM THE MAINTAINING
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE
CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 23
Ensuring information security
Comprehensive information protection
Hoymiles Inc. pays attention to protecting the Company’s core data and the privacy of customers. On the one hand Hoymiles Inc. has developed an information protection system During the reporting period
we keep the Company’s core data including but not limited to R&D data and customer information confidential including firewall system network access control system online Hoymiles Inc. did not have
through the authority and data encryption system; On the other hand according to the requirements of the General behavior management system data encryption system anti-virus any major incident concerning
Data Protection Regulation (GDPR) of the European Union and the ISO27001 information security management system backup and disaster recovery system enterprise network information security and customer
system an information security management system has been established to strengthen standardized management disk system monitoring cloud platform OA CRM SRM EHR and privacy breaches.of personnel servers and information security risks. ERP to ensure the information safety of products and customers.System construction
Constantly promoting the construction of the information and data security system Hoymiles Inc. issued the Firewall system
latest Information Security Management Measures in August 2022. Meanwhile an information security system is
developed with reference to the ISO27001 information security management system. In addition an information By applying a diversity of innovative security defense technologies and easy-to-use product design concepts
security leading group and an information security executive group have been established within the Company to Hoymiles Inc. enhances the security check and prevention capabilities of network boundaries realizes the visual
clarify relevant responsibilities and safeguard and guarantee the Company’s information security. display and rapid disposal of any network security risks and makes the construction of the organizational network
boundary security more effective and simpler.Information security Information security
leading group executive group
Release business Risk assessment Proactive defense Continuous check Rapid response
According to the arrangements of the protection
information security leading group the Asset discovery L2-L7 defense Lost host detection WeChat alert
information security executive group
arranges and implements information Server/Internet Strategy review WEB special defense AI-powered file Net-end cloud
Determine the responsibilities of security work: manage the safe operation user protection detection
various departments in the information Guide of the information system in a unified Yunzhi: instant upgrading Yunjian: detection of Early warning and
security system lead and supervise way organize information security work Risk assessment of security capability unknown threats disposal of hot events
the implementation of security work inspections analyze the overall situation Secure
handle important security incidents of information security propose prevention networking Security operation center
and build and improve the centralized measures for information security incidents
organizational system and management Report implement corresponding emergency
mechanism of the information security plans regularly test and conduct drills of Security situation Risk visible Process visible Result visible Special confrontation
system. information security emergency strategies awareness
and plans track advanced information
Assets Vulnerabilities Attack proof Overall security Security Business securitysecurity technologies organize information situation report
security knowledge training and publicity Dealing with new risks User security
among others. through convergence Assets mutual Effectiveness visit risk of strategy Compromise proof
Security event
(invaded) To do list WannaRen Ransomware and linkage Attack
Safe and effective Smart and easy to use
Convergence and linkageREPORTING MESSAGE FROM THE MAINTAINING ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF INSTRUCTIONS MANAGEMENT OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 24
Network access control system Data encryption system
The technologies involved in the network access control system include network access control and server access Through the intelligent dynamic encryption and decryption technologies files are mandatorily automatically
control. The system can protect the internal network of the whole enterprise including manageable (enterprise encrypted from the time of file creation and life-cycle supervision is carried out during the circulation process to
desktops laptops servers) and unmanageable (external visitors partners customers) terminals. It can mandatorily ensure the transparent and safe use of core data within the Company. Barrier-free flow of core data is achieved
improve the security of enterprise network terminals ensure the enterprise network protection mechanism internally and is controllable externally.uninterrupted and the configuration correct so that the network security can be improved more effectively.Legitimate USB disk client Encrypted text outgoing
Terminal device Zero trust aTrust analysis center Enterpriseidentity source export
Large Comprehensive
screen operation
visible analysis UEM Legitimate off-line Unencrypted text outgoingLog
aggregation sandbox audit log
Risk 4A AD/LDAP
identification Identity profilePolicy issuing Synchronizing Competitors’ stealing
Illegitimate secrets
State collection user sources Resignation copy
Zero trust aTrust control center Enterprise DingTalk
WeChat export Internal misconduct
Mobile
User Terminal application PC sandbox business Leakage caused by system management management business
management management vulnerabilities
Adaptive Dynamic
Mobile
application PC sandbox
Enterprise Loss of office equipment
authentication access security resourcescontrol security strategy strategy
Client Strategy engine OPEN API Anti-virus system
SPA knock Application on Protecting your computer.Cloud
The anti-virus system can track and analyze the chain
SSL tunnel Zero trust aTrust proxy gateway circuit through which viruses invade the system lock
Environmental the most commonly used directories files and registry
testing WEB proxy Strategy execution positions prevent virus and immunize popular viruses.Credible Encrypted SSL UEM audit application tunnel report Proxy At the same time through the vulnerability repair
transmission TCP/UDP Traffic forwarding Local application function it helps to effectively and timely repair system
Data sandbox access proxy mirroring vulnerabilities and block hidden danger risks.Comprehensive Quick virus Customized
virus scan scan virus scanREPORTING MESSAGE FROM THE MAINTAINING CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE ESG PERFORMANCE APPENDIX 25OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
Monitoring cloud platform Data security Network security
Deploy an encryption system to Build a network architecture with Strengthening supply
The S-Miles Cloud monitoring platform encrypt core data assets and the next generation firewall as the
of Hoymiles Inc. adapts to the web conduct vulnerability scanning and core integrate the unified security chain management
page and mobile terminal and is able to penetration testing on the core data capabilities of IPS AV and WAF
comprehensively monitor manage and system on a regular basis to reduce and realize the traffic security from
troubleshoot photovoltaic systems thus the risk of data leakage. Deploy intranet to intranet and from intranet Well aware of the importance of good supply chain management
maximizing the performance controlling data disaster tolerance and backup to internet. for providing qual i ty services and promoting enterprise
the operation of the photovoltaic systems systems locally and in different development Hoymiles Inc. is committed to establishing
in real time and making data-based places to ensure data integrity and equal close and stable relationships with excellent partners
decisions anytime. availability. for mutual benefits. By constantly improving the supply chain
management system we optimize business processes promote
the development of a sustainable supply chain and work together
to create a sunny honest and transparent supply chain ecology.Terminal security Cloud security Meanwhile we endeavor to improve our own supply chain
management ability and expand the professional knowledgeDeploy the “access + desktop Respect privacy and abide by reserve of our procurement personnel by providing supply chain-management” client implement related regulations and laws strictly related training to ensure the effective implementation of the
access control for unknown users evaluate the security control of supply chain management system and reduce supply chain-related
and configure the online behavior cloud service providers and form risks.management system under which a consistent scheme to achieve
unauthorized users cannot access system security application security
the network. At the same time each data security and content security. Supplier management
terminal is equipped with anti-virus
software in a standard way to realize
all-round security of the terminal. Administrative Pursuit of excellence green and environmental
policy protection safety and health.To constantly strengthen employees’ awareness of information security in addition Information- To further improve the management efficiency
to information security promotion for new employee orientation Hoymiles Inc. based Hoymiles Inc. relies on the SRM supply chain
conducted two training sessions on information security for employees in 2022 with management management system to meet the procurement
In terms of information security technologies Hoymiles Inc. constantly a total of 286 participants. Hoymiles Inc. will continue to improve the information management needs of the whole process
upgrades and improves relevant technologies and management security awareness of all employees through orientation training for new employees including the whole process of integrated control
measures from four aspects of data network terminal and cloud. semi-annual information security training and annual information security training order coordination with FCST plans incoming
and gradually obtain data security and information security-related certifications inspection bar code label printing quality
according to the requirements of information security level protection and the coordination automatic reconciliation and invoice
ISO27001 information security management system and the actual development of processing supplier performance evaluation
the Company. and online inquiry and bidding.REPORTING MESSAGE FROM THE MAINTAINING ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF INSTRUCTIONS MANAGEMENT OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 26
Responsible To constantly promote responsible procurement Hoymiles Inc. has formulated internal system regulations such as the
procurement Procurement Control Procedure the Management Measures for Supplier Development and the Management Measures By the end of 2022 In 2022
for Qualified Suppliers defined the responsibilities of all departments in the procurement process followed the principles of
“openness fairness impartiality competition efficiency honesty and credibility” and focused on suppliers’ ESG performance in Hoymiles Inc. had 1of the suppliers have been
business reputation environmental protection occupational health and safety and standardized management in the selection of 90%
qualified suppliers. The specific measures are as follows: 217 comprehensively reviewed in ESG-related
cooperative suppliers aspects such as environmental impact labor
Test suppliers’ samples and conduct on-site inspection examine and evaluate suppliers’ qualifications including practice human rights and social impact.logistics suppliers.Sign the Procurement Framework Agreement and the Supplier Quality Assurance Agreement and define the product
procurement requirements and suppliers’ responsibility for product quality.Evaluate suppliers every month and check and update the information provided by suppliers every year to ensure that
the information is within the validity period. Distributor management
Sign the Notice on Environment Protection Occupational Health and Safety with all suppliers to urge them to protect
the environment save energy and reduce consumption. Products of Hoymiles Inc. are basically sold to end customers through methods such
Re-confirm the qualifications of suppliers with which no trade is conducted for more than 12 months. as “integrator - installer” “EPC” distributors and medium and large size installers.Through years of market development Hoymiles Inc. has established a domestic
and foreign marketing system and good cooperative relations with many well-known
customers at home and abroad.Environmental Hoymiles Inc. also attaches importance to suppliers’ green environmental performance in the procurement process and prepares
management To further strengthen distributor management Hoymiles Inc. has established a sound system documents according to ISO9001 standards and the latest definitions. In the meantime the Company requires the
requirements distributor management system strengthened distributor qualification examination restricted substances provided by suppliers to comply with the RoHS directives of the European Union and China and the IEC’s optimized training support for distributors and regularly surveyed customer
relevant regulations and requirements on halogen. The specific measures are as follows: satisfaction. Meanwhile the Company has improved overseas technical support
teams and business support teams to provide more complete timely and fast pre-
Make rational use of the natural environment and energy resources be committed to energy saving and consumption sales and after-sales support services for local customers. Hoymiles Inc. carries out
reduction and prevent environmental pollution and ecological damage. comprehensive grading of distributors according to annual sales market influence
Identify analyze and evaluate environmental factors related to activities products and services ensure the control and and after-sales service quality. By the end of 2022 there were 399 distributors/
management of major environmental factors and hazardous sources and reduce and prevent environmental pollution. installers at home and abroad including 17 diamond-class distributors 15 platinum-
Under the premise of ensuring quality the use of pollution-free or less polluting production processes and equipment is class distributors and 20 gold-class distributors.prioritized.Supervise and urge suppliers to standardize their management conduct concerning environment protection and
occupational health and safety. With regard to suppliers that do not meet the requirements the Company will put
forward rectification opinions reduce orders suspend cooperation or change suppliers.The suppliers are required to change the carton packaging of large materials such as shell and wire harness into turnover box 1Due to some direct purchases with agents it is impossible for Hoymiles Inc. to conduct a
packaging for recycling which is expected to save RMB 2 million for suppliers in carton packaging costs every year. comprehensive review to all suppliers.REPORTING MESSAGE FROM THE MAINTAINING ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF INSTRUCTIONS MANAGEMENT OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 27
03
CO-BUILDING LONG-TERM
VALUES
Always committed to independent R&D and innovation Hoymiles Inc. focuses on
module-level power electronics technologies and products attaches importance
to R&D professional training constantly increases R&D investment fully mobilizes
all parties like the industry universities and research institutes conducts in-
depth analysis and excavation of customer and market demand and pursues and
consolidates market-leading advantages in technological innovation while ensuring
that the Company’s products are closer to customer and market demand. On the basis
of technological innovation Hoymiles Inc. continues to strengthen the quality and
safety management of products and services actively launches high-quality products
provides smart energy solutions constantly improve self-products and services and
dedicated to providing all-round pre-sales and mid-sales services as well as reliable
technical support and after-sales guarantee for customers around the world.REPORTING MESSAGE FROM THE MAINTAINING CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 28
Independent innovation
To promote industrial development enhance core competitiveness and sustainable development capabilities Constant product innovationHoymiles Inc. has developed a highly efficient R&D system based on the “provincial high-tech enterprise researchand development center” and established a professional technical R&D team led by professionals with postdoctoral By the end of December 2022 the Company had a number of innovative projects at the stages of
research experience or doctorate degrees constantly deepening the cultivation in the fields of photovoltaic inverters development or trial production involving the improvement of product power density the R&D of the single-
energy storage inverters and complete sets of electrical equipment and improving the enterprise’s technological phase household energy storage system the development of module-level power electronic data acquisition
advancement. system and other projects taking the lead in the industry.Strengthening R&D innovation In 2022 based on the previous technology accumulation and market demand analysis the Company
launched several innovative products namely hybrid energy storage inverters AC coupled energy storage
Sustained high-level R&D investment is the key for Hoymiles Inc. to maintain our core competitiveness. We inverters and module-level Hoymiles Rapid Shutdown Device (HRSD).constantly integrate internal R&D resources and step up R&D efforts and investment with a focus on the cutting-
edge technologies of microinverters energy storage inverters complete sets of electrical equipment and other
products and software algorithms. In addition we gradually develop products based on projects to constantly
improve the Company’s product performance and enhance the capability in independent innovation. The energy storage inverter of a new
generation
The “Green Power” Controller helps people have access to power in a smarter more flexible and more
Increasing R&D investment stable way through four power source modes and seven functions.To meet the strategic development needs of new product development In 2022 the R&D expenditure
technological innovation and product iteration Hoymiles Inc. has Seven functionsamounted to RMB
been increasing investment in R&D and innovation and improving
the mechanisms of talent introduction training reserve and incentive. million Reducing cost and increasing
In 2022 the R&D expenditure amounted to RMB 97.3995 million 97.3995 efficiency extra income
accounting for 6.34% of the operating income and increasing 112.75% smart monitoring unbeatable
compared to the R&D expenditure of the previous year. compatibility flexible coupling
By the end of December 2022 endless scalability and effortless
Hoymiles Inc. has developed an experienced skilled and innovative installation.there were
R&D team while hiring experts to constantly enrich the R&D
talent pool. By the end of December 2022 there were 213 R&D Four power source modes
professionals in the Company accounting for 18.83% of the total 213
employees of the Company. Professionals with master’s and doctor’s R&D professionals in the Solar mode battery mode grid
degrees accounted for about 18.78% of the R&D personnel. Company mode and generator mode.REPORTING MESSAGE FROM THE MAINTAINING ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF INSTRUCTIONS MANAGEMENT OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 29
Module-level Hoymiles Rapid Professional product certifications
Shutdown Device (HRSD) With the concerted efforts of the R&D team all products of Hoymiles Inc. have developed certain technical advantages. The core technical indexes such as power density power
range and conversion efficiency of the Company’s microinverters have certain advantages compared with the same type of products. Three-phase energy storage inverters
HRSD can rapidly shut down the connection integrate smart energy management modules flexibly adaptable to a variety of application scenarios.between each module within 30 seconds cut
off the DC side high voltage and reduce the
voltage to 80V within one foot of the system and
to 30V beyond one foot. HRSD can ensure the
safety of operation and maintenance workers and International certifications received by microinverters:
firefighters in case of an emergency such as a fire
in the photovoltaic power station.HRSD-1C and HRSD-2C multi-series product
lines have been developed achieving strong
compatibility able to match different brands
power series of photovoltaic modules.Hoymiles Inc. has conducted a lot of research and
testing on the installation of HRSD and finally
realized “click and install” saving time and labor
costs so that novices can get started quickly. New IEEE1547 standard VDE AR-N 4105 certification TOR2019 certification New standard CEI 0-21:2022 FCC part15B certification of
Certification of North America of Germany of Austria certification of Italy the United States
The working noise of RSD is far below the
“warning line” to prevent the misjudgment ofthe system causing an “emergency powercut” stopping the system and causing losses
and ensure the power generation income of
photovoltaic power stations.PCCC certification of China CQC certification of China AS/NZS4777.2-2020 PN EN 50549-1 certification certification of Australia of PolandREPORTING MESSAGE FROM THE MAINTAINING CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE ESG PERFORMANCE APPENDIX 30OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
International certifications received by DTUs: International certifications received by energy storage inverters:
Anatel certification of Brazil FCC part15B certification of CE-RED certification of the United States Europe European safety regulation/IEC/ British safety regulation EMC/IEC61000-1/IEC61000-3 British EMC UKCA-EMC
EN62109-1/2 certification UKCA-LVD certification certification of Europe certification
International certifications received by shutdown products:
UL1741 certification of SunSpec certification FCC part15B certification of European grid connection / VDE AR-N 4105 certification IEC61683:1999 VFR2019 certification of North America the United States EN50549-1: 2019 certification of Germany certification of Pakistan France
International certifications received by transmitter products:
SunSpec certification FCC part15B certification of the United States AS4777.2 certification of TOR2019 certification of PO_EN50549 certification
Australia Austria of PolandREPORTING MESSAGE FROM THE MAINTAINING ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF INSTRUCTIONS MANAGEMENT ESG PERFORMANCE APPENDIX 31OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
Intellectual property protection
Hoymiles Inc. greatly values intellectual property rights (IPRs) strictly abides by domestic and overseas IPRs-related
laws and regulations constantly improves the internal intellectual property process of the Company and protects the
Company’s innovation achievements in the whole process and multiple dimensions by formulating such systems as
the Intellectual Property Application Process.To actively encourage employees to apply for various IPRs including patents and copyrights the Company has also
formulated such systems as the Intellectual Property Incentive System and the Patent Grading Evaluation System
and established a multi-level and all-round incentive mechanism for knowledge products as an important reference
for individual or team performance evaluation. For the awards of IPRs a system of “one prize two installments” is
adopted that is for each patent 20% of the rewards are issued after it is accepted by the China National Intellectual
Property Administration and 80% are awarded after it is authorized by the China National Intellectual Property
Administration. In 2022 the intellectual property awards totaled RMB 62000 with 21 awardees.Respecting others' intellectual property achievements Hoymiles Inc. has established a comprehensive Intellectual
Property Risk Identification and Management Process to avoid infringing on any others' IPRs in production and
operation and to create a fair and orderly competitive environment with the concept of win-win cooperation. In 2022
no IPR-related disputes occurred.Common progress of the industry
Indicator (unit: item) Newly obtained Newly obtained Newly obtained Number of patents obtained in 2020 in 2021 in 2022 by the end of 2022
Invention 3 3 13 32 Participating in standard making
Hoymiles Inc. concerned with the development of the industry has participated in the formulation of PV grid-
Patent Utility model 13 13 6 44 connected microinverter T∕ZBB 0229-2017 Technical Specification of Photovoltaic Grid-connected Micro
Industrial Inverter NB/T 42142-2018 Technical Specification of Photovoltaic Module Power Optimizer NB/T 42143
design 3 3 3 8 -2018 Technical Specification for Documentation Inspection and Testing of Grid-connected Photovoltaic (PV)
System T/CPIA 0010-2019 Residential Photovoltaic Grid-connected System - Part 2-4: Design Specification-
Trademark 12 19 6 70 Electrical Safety Design T/CPIA 0011.204-2019 Residential Grid-connected Photovoltaic (PV) System - Part
4:Code for Acceptance T/CPIA 0011.4-2019 Technical Requirements for Control and Power Distribution
Software copyright 13 13 8 62 Equipment in Building Photovoltaic System T/CECS 10137-2021 and other industrial and organizational
standards providing basic support for the development of the industry.REPORTING MESSAGE FROM THE MAINTAINING
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE
CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
VALUES ENVIRONMENT RESPONSIBILITY ESG PERFORMANCE APPENDIX 32OPERATIONS
Deepening cooperation and exchanges
While constantly improving the innovation capability Hoymiles Inc. attaches great importance to cooperation Hoymiles Inc. actively trains a new generation of science and technology professionals works closely with institutes
and exchanges with peers and research institutions actively joins domestic and foreign energy associations of higher education conducts technical exchanges and cooperates in the R&D of key projects. The Company
actively participates in industry forums and exhibitions studies key and forward-looking technical problems cooperated with Zhejiang University and Hangzhou Dianzi University to develop the 2022 “Jianbing” and “Lingyan”in the development of photovoltaic and energy storage industries with outstanding peers shares strategic R&D key projects in Zhejiang Province – “Research and Application of Power Semiconductor Chip Module Designexperience and market trends and promotes constant innovation and progress in the new energy industry. and Packaging Test Equipment – Research and Application of Digital Design and Smart Evaluation Technologyof Power Semiconductor Devices.” At the same time the Company provides exchange internship opportunities
for college graduates to help them understand the development of the industry and enhance their employment
competitiveness. Fresh graduates and those with working experience who have joined the Company over the past
China years have constantly emerged as leading talents in technology and management.Hangzhou Energy Jiangsu Province PGO Green China Photovoltaic
Storage Association Renewable Energy Energy Ecosystem Industry Association
Vice-president unit Industry Association Organization Member unit Hoymiles Inc. started the campus recruitment project in September 2022. With the theme of “New” Light
Director unit Member unit Illuminating and Empowering the Future Hoymiles Inc. released recruitment information on the job-
search websites of nearly 40 colleges and universities and held onsite publicity activities in 12 colleges
and universities signing contracts with more than 70 college graduates.Zhejiang Green Building
and Construction
Guangdong Solar Zhejiang China New Energy Industrialization Association
Energy Association – Carbon Peaking and Renewable Energy Chamber of Carbon Neutrality Service Association Commerce
Member unit Promotion Branch Director unit Member unit
Member unit
Hangzhou Dongguan
Renewable Energy Asian Photovoltaic Industry Association Photovoltaic Industry Association Association
Director unit Member unit Member unit
Overseas
California Solar &
Storage Association Canadian Renewable Australian Clean
(CALSSA) of the Energy Association Energy Council
United States Member unit Member unit
Member unit
Hoymiles Inc. actively joined domestic and foreign energy associationsREPORTING MESSAGE FROM THE MAINTAINING ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF INSTRUCTIONS MANAGEMENT ESG PERFORMANCE APPENDIX 33OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
Product quality management
Excellent product quality lays the foundation for the Company’s long-term To ensure product quality Hoymiles Inc. has established a quality management department with a QC inspection team to
success. Hoymiles Inc. adheres to the quality policy of Pursuing Excellence ensure the quality of our products. The supplier quality engineer supervises and improves supplier quality; the process quality
attaches great importance to the development of the quality management Organizational engineer improves process quality; and the customer quality engineer maintains and guarantees after-sales quality. The
system constantly optimizes quality management mode and strives to and system sampling and inspection standards including the Control Procedure for Corrective/Preventive Measures the Sampling Plan in
create value for customers and provide high-quality products. The Company guarantee Quality Control the Feedstock Inspection Specification the IPQC Inspection Specification the Finished Product Appearance
has established a quality management system according to international Inspection Standard the Accident Incident and Non-conformance Control Procedure have been formulated implementing total
standards and formulated a management manual 26 program documents and quality management from feeding to process to delivery.various standards and systems according to the requirements of the quality
management system covering the Company’s document control knowledge
management risk response accident control legal requirements product
design equipment operation human resources information exchange and so
on. In recent years the quality of the Company’s products has been constantly Hoymiles Inc. attempts to popularize product
and steadily improved with all technical indicators being in line with domestic quality-related knowledge and regularly provides
and foreign standards and certified by various authoritative organizations. By employees with product quality-related training
far the design and production of the Company’s main products microinverters including electronic components and their
and DTUs have passed the ISO9001 quality management system certification
Comprehensive packaging structures finished product appearance and the scope of certification is being expanded.and regular standards SPC/MSA product cert i f icat ion
training marks quality process control 5W2H and case
explanations. In 2022 quality-related employees
were trained for 83 times with training time
amounting to 514 person-hours in an effort to
consolidate their product quality-related knowledge. Employees attending product quality-related training
In 2022 the percentage of failures in The number of products that must be
the total number of Hoymiles Inc.’s core recalled for safety and health reasons in the
products microinverters was total number of products sold or shipped is
0.173%0
ISO9001 Quality Management System CertificationREPORTING MESSAGE FROM THE MAINTAINING CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 34
Optimizing customer services
Building a global network Customer management system
Committed to becoming the preferred supplier of international photovoltaic products Hoymiles Inc. is constantly Hoymiles Inc. manages customer resources in a unified way through the information system establishes a 360°
optimizing and improving its global service layout. The Company’s overseas marketing business is divided into customer view ensures that the enterprise can keep track of customer information and record customer information
four regions each having a technical support service center to provide customers with all-round and integrated anytime and anywhere and constantly improves the customer resource database. We support multi-dimensional
services. The Company has set up a localization service team to provide service support for local customers further duplication checking of customer information effectively avoid sales repetition realize automatic allocation of
strengthen communication with customers and improve refined management in the service process. At the same customer resources through customer allocation rules improve efficiency realize classified and hierarchical
time we actively carry out online seminars online training and exchange activities to help customers access the management of customers through labels customize label content realize meticulous management of customers
Company’s latest developments and product information in time with efficiency effectiveness and high quality and build portraits of potential customers of the enterprise.respond quickly to global customer demands and create greater value for our customers.Potential Interested Existing /
customers customers loyal customers
Discover customers and improve Follow up with customers to stimulate Maintain customers to establish
Webinar customer acquisition efficiency their intention to purchase trust and loyalty
Our webinar will provide you with an opportunity to communicate directly with people in the Market Customer Multi-channel
industry and learn how to achieve the goal of clean energy for all through innovative ways. You activities information access
can register now whether you want to know how to become an installer of Hoymiles learn new Form sharing Extended Contact Extended Service order Extended
skills for a specific installation scenario or just want more information. Website application informationacces Business application
Service order
distribution application
Clue pool Online customer opportunity Long-distance Knowledge Customer
Clue service information baseWebinar demonstration service toolsdistribution Phased Online
Marketing Form tools management Sales incentive chatting
effect Questionnaire of business
Mass mailing opportunities
Email marketing
Handling of customer complaints Name card Sales predictionscanning Purchase-sale-
inventory system
To rapidly address customer complaints and actively safeguard customers’ rights and interests Hoymiles Inc. has Document center: permiss
s ih oa nr ed to co- Teamwork: work dynamics edi Data analysis: dashb
oard form AI
formulated the Customer Complaint Process and established a customer complaint response mechanism to quickly t documents instant communication
solve customers’ problems. Meanwhile the Company digs deep into the root causes horizontally surveys and
solves hidden product problems and improves product quality thus upgrading customer service quality and service Customization on the PaaS platform
level and enabling the enterprise to win customers again. In 2022 the number of customer complaints was zero.The customer management systemREPORTING MESSAGE FROM THE MAINTAINING ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF INSTRUCTIONS MANAGEMENT OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 35
Customer feedback
According to the survey results
the customer satisfaction rate was
Hoymiles Inc. regards customer feedback as an important basis for improving relations with customers. The
Company is open to communication through the online WeChat official account mail telephone and face-to-face
interviews to collect customer feedback. After communication the Company actively analyzes customer feedback
forms a satisfaction survey report and then improves product design and service level. Customers’ satisfaction with
us has increased year by year with our constant improvement of product quality and service level. According to the 89.23% 91.52% 92.46%
survey results the customer satisfaction rate was 89.23% in 2020 91.52% in 2021 and 92.46% in 2022 respectively.in 2020 in 2021 in 2022
Customer level Brand level
Online official account Telephone Learn the satisfaction about Horizontally compare
Hoymiles Inc.’s products satisfaction of different
Issue satisfaction survey Conduct satisfaction by different customers brands
among users followed survey through (distributors developers
through LinkedIn & telephone interview installers end users etc)
WeChat official account
Email Face-to-face interview
Conduct satisfaction Conduct satisfaction
survey by sending survey with customers
emails face to face Scenario level Country level
Learn the satisfaction about Learn the satisfaction about
Hoymiles Inc.’s products in Hoymiles Inc.’s products
different scenarios by different customers in
different countries
Customer satisfaction survey methods Customer satisfaction survey topicsREPORTING MESSAGE FROM THE MAINTAINING CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 36
04
PROTECTING THE GREEN
ENVIRONMENT
Hoymiles Inc. actively responds to the national carbon peaking and carbon neutrality
strategy constantly optimizes its green performance implements green environmental
protection and energy conservation and emission reduction measures simultaneously
at the production end and the operation end. While providing better products for the
photovoltaic industry the Company pays close attention to the energy and resource
usage in daily operations acts proactively in opposing waste and improving the
efficiency of resource and energy use to protect the green environment.REPORTING MESSAGE FROM THE MAINTAINING CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE ESG PERFORMANCE APPENDIX 37OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
Active environmental management The waste gas from factory production mainly comes from welding dust and the emission
shall follow the grade II in “Emission Limits of Air Pollutants from New Pollution Sources” that
Hoymiles Inc. has been improving its environmental management system and upgrading the EHS management is Table 2 of the Integrated Emission Standard of Air Pollutants (GB16297-1996). We collect
framework. The Company has set up the Energy and Resources Management Procedure to reduce energy all the waste gas generated in the production process through the gas trap hood and then
consumption established the Water Gas Sound and Solid Waste Control Procedure to strengthen the filter it through activated carbon to ensure up-to-standard discharge from the exhaust pipe
management of emissions during production and reduce the intensity of pollution emissions and established the Waste gas with a height of no less than 15m. The emission concentration of treated waste gas meet the
Environmental Factors and Hazard Identification Management Procedure to avoid environmental risks. Meanwhile treatment requirements of industrial control standards and related laws and regulations.we promote green offices strengthen green consensus and strive to achieve coordinated development with society
and the environment.Promoting clean production The production process of Hoymiles Inc. does not involve water and thus no industrial wastewater is caused. Domestic sewage shall be subject to Grade III standard in the Integrated
Water Discharge Standard (GB8978-1996) (NH3-N shall be subject to Indirect Discharge
Hoymiles Inc. strictly abides by the Environmental Protection Law and the laws Standard for Nitrogen and Phosphorus Pollutants in Industrial Wastewater (DB33/887-2013)).regulations and normative documents on pollution prevention and control The drainage system in the factory area is divided into different parts. After being treated in a
having formulated an internal environmental protection system and established septic tank the toilet sewage will be included in the sewage pipe network together with other
the environmental management policy: pursuit of excellence green and domestic sewage and the rainwater pipe network in the factory area is connected to the
environmental protection safety and health. The Company has established Wastewater treatment municipal rainwater pipe network after being collected.a sound EHS management framework and assigned full-time EHS management
personnel to reduce the discharge of various pollutants and mitigate the negative
impact on the environment from all aspects of the industrial chain. The Company
has obtained ISO14001 environmental management system certification. In 2022 ISO14001 Environmental Class II standard of the Emission Standard for Industrial Enterprises Noise at the Boundary
no major environmental violations occurred. Management System Certification (GB12348-2008) is followed. The noise of the factory buildings mainly comes from fans power
distribution and water pump equipment. We put such equipment in a separate sound insulation
room in the basement add a static-pressure vibration reduction foundation during installation
Hoymiles Inc. abides by the requirements of the Law of the People’s Republic of China on and have a muffler installed at the fan outlet. At the same time Hoymiles Inc. carries out noise
the Prevention and Control of Environmental Pollution by Solid Waste (revised in 2016) the control in the factory area by monitoring the working environment and checking occupational
Standard for Pollution Control on the Storage and Disposal Site for General Industrial Solid Noise health to reduce the health hazards of the working environment to employees and other
Wastes (revised in 2013) in the treatment of solid waste and the Standard for Pollution treatment residents around.Control on Hazardous Waste Storage (GB 18597-2001) (revised in 2013) in the treatment
of hazardous waste. Hazardous wastes and general solid wastes generated during the
production and R&D are entrusted to qualify professional institutions for disposal. We classify
and seal hazardous wastes and post labels that meet the requirements on the surface of
Solid waste packaging containers. Before transportation we apply to the local environmental authorities
Electric forklifts are frequently used in the factory area of Hoymiles Inc. For motor vehicles
treatment for the transfer of relevant hazardous wastes according to law and declare the types output
entering and leaving the factory we take the following measures: set up no-honking and speed
storage and disposal of hazardous wastes. General waste is delivered by the local qualified limit signs on the roads close to the entrance and exit and prohibit vehicles from whistling; use
cleaning and removal service provider to the incineration plant or landfill designated by the low-noise ramps at the entrance and exit of underground garages and add sound insulation
government. Vehicle ceilings to prevent any adverse effects on other residents around.managementREPORTING MESSAGE FROM THE MAINTAINING
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE
CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
VALUES ENVIRONMENT RESPONSIBILITY ESG PERFORMANCE APPENDIX 38OPERATIONS
In June 2022 Hoymiles Inc. entrusted a third party to carry out environmental testing on the domestic sewage Energy saving and consumption reduction measures
exhaust gas and noise at the factory boundary and work environment. The results showed that the domestic
sewage noise at the factory boundary and welding exhaust gas all reached the standard.Workshops built by the Company should increase the utilization level of natural light and it is clarified that
the lighting in the building’s toilets and public passages should be turned off as much as possible given
Indicator Unit Annual output the availability of daylight. Before leaving workplace employees should turn off the lighting equipment and
never leave any light on all the time except in necessary areas.Total exhaust gas emission m3 11952000 The lighting in the factory areas adopts LED lights with the number of light bulbs under reasonable control.The stairwells are equipped with light control sound control or time control devices.All air conditioning equipment for office and production is low energy consumption.Domestic waste Ton 7.70
General Set up the “Code for Air Conditioning from Spring to Summer” the “Code for Heating from Autumn tosolid waste Winter” and the “Regulations for the Use of Air Conditioning Equipment” set the temperature in the office
Resource waste Ton 67.30 area and conference room at 26℃ in summer and 20℃ in winter and adjust the air conditioning service
Hazardous time according to the outdoor temperature of the day.waste Silicone encapsulants Ton 40.29 Advocate green travel reduce business travel and optimize the driving routes of business vehicles.Address the problems found during inspection and maintenance of facilities and equipment in time and put
an end to any unnecessary gas leakage water overflow liquid dripping etc.Resource saving and recycle
Low-carbon operation Equip toilets with water-saving sanitary ware advocate not buying bottled drinking water strengthen water
management and reduce water consumption of the enterprise.Hoymi les Inc. appl ies the low-carbon Use second-hand furniture desks and chairs and second-hand glass doors to save costs and maximize
concept in daily operation and corporate resource utilization in factories and offices after decoration.culture development committed to improving
employees’ awareness of energy conservation
and environmental protection consciously
practicing green and low-carbon office
methods and striving to reduce the impact on Raise the awareness of environmental protection
the environment from the operational level so
as to contribute to a green environmentally Continue to train our employees and suppliers on environmental protection strengthen energy conservation
friendly energy-saving and low-carbon living publicity through such activities as the National Energy Conservation Week Earth Day and Low-carbon
environment. Day carry out training on the knowledge about the environmental management system for employees and
be concerned with suppliers’ green environmental performance.REPORTING MESSAGE FROM THE MAINTAINING ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF INSTRUCTIONS MANAGEMENT OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 39
Electronic office Creating a
green base
Improve the video conference system increase the frequency of video
conferences effectively reduce conference costs and thus mitigate the Well aware of the importance of energy
carbon emissions caused by travel and conference supplies. conservation and emission reduction
Use OA ERP and other online office systems to further promote Hoymiles Inc. is committed to the vision
paperless office and electronic file management set the double-sided of “Open Energy for All” promotes
printing as the default model and reduce the use of paper ink and other industrial green transformation with
consumables as well as the use of fax copying machines and other consistent ideas and practical actions
office appliances. actively builds a brand-new green
Financial reimbursement shall be made through business-to-business smart manufacturing base implements
settlement to reduce the waste of resources caused by the issuance a number of energy-saving projects
and pasting of paper invoices. and accelerates the process of green
transformation.Green smart manufacturing base
Waste management
Turn the digital intelligence technology into an “invisible “Energy transformation” in small places boosts theStrengthen the management of hazardous waste and harmless waste booster” for improving the energy utilization rate sustainable development of the base
generated in office work and use different methods to deal with different
types of waste to ensure that waste is treated in a timely and scientific A large number of intelligent equipment and systems are newly Clean energy replaces traditional energy in many links. For
manner. introduced into the base to realize highly efficient and accurate example in transportation electric forklifts and fast charging
Recycle recyclable waste strengthen the publicity of garbage sorting operation ensure stable product quality and reduce material technology are adopted in the base which not only meets
and strive to achieve reduction at the source put garbage in different waste. production and transportation needs but also mitigates carbon
bins among other efforts. The test information of each production node can be collected by emissions.Hazardous and harmful wastes generated in office work such as scanning the product ID barcode. We can automatically identify New manufacturing equipment is being constantly introduced and
batteries waste toner cartridges of printers pesticides etc. are placed and intercept defective products reduce the rework rate not upgraded which improves production efficiency while reducing
in a special bin and handed over to qualified units for treatment. only effectively controlling the product quality but also constantly power consumption. The energy consumption of each piece of
Non-recyclable wastes shall be disposed of by a garbage removal unit. upgrading the energy utilization rate. equipment is reduced by more than 30% for two consecutive
Recyclable waste such as cartons and plastic bottles shall be collected The digital information system which integrates data collection years.and handed over to resource recycling units for recycling. storage query processing and management significantly Electrical equipment with high COP energy efficiency is preferred
improves production efficiency and reduces energy consumption. for production lines and public auxiliary facilities.It has been planned to introduce rooftop photovoltaics for the new
factory area in 2023 some of which will be operated by green
electricity.REPORTING MESSAGE FROM THE MAINTAINING CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 40
Scale Automatic production line
The smart manufacturing base holds several modern manufacturing Gradually strengthen labor protection by improving working conditions constantly phase out equipment with backward performance improve equipment
buildings integrating the functions of display production AS/RS and efficiency and safety and improve automatic production coverage. While effectively ensuring product precision and stability reducing manual operation ratio and
logistics and providing robust support for the market with its leading labor intensity decreasing workers’ chance to contact with mechanical equipment and chemicals and effectively safeguarding employees’ safety and health.quality standards and quick response.Equipment
Intelligent equipment and systems are being constantly introduced in
efforts to create a “precise” and “focused” production system greatly
improving production efficiency and further controlling product quality.Fully automatic three-proofing coating line to minimize employees’ health problems Fully automatic glue filling line to improve glue filling stability and product quality.resulting from chemical solvent volatilization
Electric forklifts and electric
stacking trucks used in the smart Automatic thermally conductive Automatic welding robot to prevent Automatic screw locking robot to Automatic labeling machine to improve the efficiency and
manufacturing base adhesive dispenser to reduce employees’ health problems caused reduce workers’ labor intensity stability of labeling.the employees’ health problems by the volatilization of tin smoke
caused by the volatilization of generated during welding.chemical solvents.REPORTING MESSAGE FROM THE MAINTAINING
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE
CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 41
Management
Electronic SOP of work instructions
By using information-based management the new base has transformed from “managing labor” to “managing data”
by collecting processing and analyzing production data thus realizing real-time updating of important data such as The 200+ intelligent electronic SOP systems independently developed and maintained by Hoymiles
production progress order information defective ratio input-output data and first pass yield (FPY). Inc. refine and quantify each procedure reflect the production situation in time realize paperless work
instructions for each position and improve the replacement efficiency of work instructions.Production information management system
The production information management system independently developed and maintained by Hoymiles
Inc. as an information integration and management platform for the production process is mainly used
for production data collection data storage data query data processing and data management of the
Company’s manufacturing system.Production information e-board
The production information e-board independently developed and maintained by Hoymiles Inc. can display
the current production data of each production line in real time realizing visualized management and
ensuring stable product quality to meet ex-factory requirements.Safety
Hoymiles Inc. strives to “lock in” risks in the whole process of management and control and ensure “zero blindangle” in the safety management of the base; upgrades the automatic production line to replace traditional manual
operation to minimize health and safety risks; requires that before entering the production line employees should go
through strict checks: anti-static clothes card registration electrostatic bracelets etc. to ensure that the production
line is in a static-free environment and prevent any production safety hazards; constantly standardizes the operation
process improves the production safety system carries out regular training constantly improves the standardization
and reliability of safety management and urges the base management and implementation personnel to maintain
safety awareness and keep alert of the safety status at all times.REPORTING MESSAGE FROM THE MAINTAINING ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF INSTRUCTIONS MANAGEMENT OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 42
05
POOLING THE POWER OF
RESPONSIBILITY
Hoymiles Inc. committed to the people-oriented approach and the concept of
mutual respect strives to provide employees with a competitive salary and welfare
system fair promotion channels a perfect training system and an inclusive working
environment to boost the healthy development of employees’ careers. At the same
time the Company proactively fulfills corporate social responsibility and leverages its
advantages to constantly carry out charity work demonstrating the social commitment
of Hoymiles Inc.REPORTING MESSAGE FROM THE MAINTAINING CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 43
Enabling inclusive growth for employees
Always integrating the interests of employees with the long-term development of the Company Hoymiles Inc.constantly improves the development and management mechanisms of talents and teams attracts and retains Occupational health and safety
talents from different backgrounds and professions provides competitive salary and welfare and opportunities
for continuous learning builds a safe and interesting working environment constantly protects the interests of Hoymiles Inc. always puts employees’ occupational
ethnic minorities and special groups and strives to build harmonious labor relations and share the development health and safety at the top of all work strengthens
achievements of the enterprise with our employees. occupational health and safety protection and builds
a perfect EHS management framework. The legal
Protecting employees’ rights and interests representative of Hoymiles Inc. is the principal person
in charge of EHS and the chief safety officer of the
Hoymiles Inc. abides by the Labor Contract Law of the People’s Republic of China the Labor Law of the People’s Company’s administrative center is responsible
Republic of China the Law of the People’s Republic of China on the Protection of Women’s Rights and Interests for the EHS management of the whole Company.and other relevant laws and regulations and has formulated internal management systems such as the Recruitment The Company has full-time managers regarding
Management System the Salary Management System the Welfare Management System the Attendance occupational health and safety environmental
Management System the Employee Work Injury Management System the Job Change Management System and protection ISO system and quality management. The
the Internal Lecturer Management System attaching great importance to employees’ legal rights interests and Company has obtained ISO45001 occupational health
reasonable claims in terms of employment salary welfare recruitment and promotion and constantly improving the and safety management system certification. ISO45001 Occupational Health and Safety
management of labor relations. Management System Certification
Recruitment and talent attraction
Hoymiles Inc. following the recruitment principle of In 2022 Hoymiles Inc. attaches great importance to recruiting By the end of 2022
“openness fairness and justice” is committed to 100% cultivating and retaining talents. The Company treats the Company hadstandardizing employment and respecting human employees signed employees equally offers young people opportunities.rights and recruits new employees on the objective By creat ing a posi t ive and inclusive working 1131employees
basis of candidates’ ability experience and educational labor contracts atmosphere and enhancing employees’ sense of
background without any prejudice because of their belonging to the Company the Company ensures that
gender age nationality skin color religious beliefs it can continue to attract and retain talents to support
and referees. Candidates’ identity information is strictly its long-term growth needs. By the end of 2022 the
verified in the recruitment process to prohibit child NO child labor Female employees Company had 1131 employees of whom female
labor and forced labor. In 2022 all employees signed forced labor or employees accounted for 46.24%. The core technical accounted for
labor contracts and no child labor forced labor or dis- discrimination was found team consists of professionals in related fields
crimination was found. of whom people with a master’s degree or above 46.24%
accounted for 6.98%.REPORTING MESSAGE FROM THE MAINTAINING ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF INSTRUCTIONS MANAGEMENT OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 44
Safety training
Case Hoymiles Inc.’s training in safety and first aid knowledge in 2022
Hoymiles Inc. actively strengthens the occupational health and safety training of employees before their induction
and during their employment offers training courses such as occupational health and safety general knowledge
of production safety fire safety traffic safety general operation safety and first aid knowledge urges employees to On July 28 2022 Hoymiles Inc. held a safety and first aid knowledge training session which covered four
abide by the operating rules of occupational health and safety popularizes the methods of wearing and maintaining topics including basic first aid knowledge emergency treatment of heatstroke cardiopulmonary resuscitation
occupational protective equipment and creates a healthy safe and harmonious working environment for employees. and treatment of obstruction in the respiratory tract to improve employees’ emergency rescue ability.Case 2022 fire drills
On November 9 2022 Hoymiles Inc. organized a fire drill to improve employees’ fire control and prevention
awareness help them master basic fire control knowledge and ensure safe production. The on-site firefighting
group and water supply group used fire extinguishers fire hydrants etc. in time to put out fire. The rescue
group and the logistics group arranged people on the site to evacuate to a safe area and counted people and
materials after the drill and then made a record and filed it.REPORTING MESSAGE FROM THE MAINTAINING ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF INSTRUCTIONS MANAGEMENT OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 45
Occupational health Main contents of safety management
Hoymiles Inc. strives to provide employees with a safe healthy clean In 2022 the occupational Ensure the implementation of the responsibility system for production safety safety management
and comfortable working environment. In August 2022 Zhejiang Duopu system and basic work of safety management.health examination rate of
Detection Technology Co. Ltd. was invited to carry out the annual
detection of occupational hazards in the workplace. It turned out that Hoymiles Inc. was All the safety directors and safety officers of the Company have obtained professional certification and
lead smoke tin dioxide and cyclohexane all reached the standard. 100% all the factories have passed the third-level certification of safety standardization.In addition Hoymiles Inc. continues to improve the operating Investigate potential safety hazards on site concerning environmental protection processes equipment
procedures related to safety and health management and emergency electricity use fire control inspection and maintenance vehicle transportation occupational health
rescue measures for occupational hazards. Employees exposed to staff status and labor discipline.occupational hazards are equipped with labor protection articles as
required and gas hoods are installed at the work stations as required. In addition to routine inspection the Company conducts a major comprehensive safety inspection every suspected
At the same time the Company actively organizes employees to NO month and implements rectification work.carry out annual occupational health examination provides additional occupational
physical examination for key occupational diseases and declares diseases occurred Standardize emergency handling procedures for electric shock natural disasters typhoons fires
occupational disease hazards so as to reduce occupational disease accidental injuries etc.risks. In 2022 the occupational health examination rate of Hoymiles
Inc. was 100% and no suspected occupational diseases occurred. Organize employees to identify all kinds of risks formulate targeted emergency plans for accidents
regularly carry out training and emergency drills and constantly urge workers to abide by safe operating
procedures of their positions to improve their safety awareness.Production safety
Establish and implement the management and storage system of hazardous chemicals. Hazardous
chemicals shall be managed by special personnel and stored in explosion-proof cabinets as required. At
To prevent production safety-related accidents improve the inspection In 2022 the same time to cope with emergencies protective tools shall be provided beside all hazard sources
and emergency management mechanism control and handle accidents that may cause harm to employees.in a timely and effective manner and protect the personal safety of NO general
employees and the property safety of the Company Hoymiles Inc. safety accident major
has formulated the Factory Safety Management System the Potential safety accident major
Safety Hazard Inspection and Management System the On-Site Hazardous chemicals are stored
Disposal Scheme the Management System for Storage and Use of occupational disease or in explosion-proof cabinets
Hazardous Chemicals and the Management System for Flammable fire incident occurred in with emergency disposal facilities nearby. The purchase
and Explosive Places etc. strictly implementing the requirements Hoymiles Inc. request requisition storage
of laws and regulations on production safety constantly optimizing and transportation of hazardous
the production safety system and preventing major safety accidents. chemicals are managed by special personnel and are checked and
In 2022 no general safety accident major safety accident major registered regularly.occupational disease or fire incident occurred in Hoymiles Inc.REPORTING MESSAGE FROM THE MAINTAINING CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE ESG PERFORMANCE APPENDIX 46OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
Basic salary and benefits
Emergency plans
Hoymiles Inc. following the principle of equal salary and benefits system constantly improves the salary and benefits
With regard to any possible major emergencies Hoymiles Inc. has formulated emergency plans according to the policy and sets up unequivocal regulations on the salary composition salary level determination performance
Law of the People’s Republic of China on Safe Production the Regulations on Reporting Investigation and disposal appraisal mechanism overtime allowance and benefits of employees in efforts to effectively protect the salary and
of Production Safety Accidents the Guidelines for Preparing Emergency Plans for Production Safety Accidents benefits level of all employees.of Production and Business Units the Guidelines for Emergency Drills of Production Safety Accidents and other
laws regulations and technical standards in an effort to improve the emergency management mechanism of daily We provide our employees with basic benefits such as social insurance (endowment insurance medical insurance
production to control and handle possible accidents quickly and effectively and protect the personal safety of work-related injury insurance maternity insurance unemployment insurance) and housing accumulation fund and
employees and the safety of the Company’s property. provide daily benefits including transportation subsidies meal supplements high temperature subsidies holiday
gifts birthday gifts accommodation etc. Supplementing commercial insurance is provided for employees on
Emergency Unified leadership and Prioritize prevention and combine both business trips and expatriates. Care benefits are provided for employees when they are married bear child or suffer
work principle People-oriented safety first graded responsibility prevention and rescue from bereavement such as additional maternity allowance. Insurance is bought for retired employees who are re-
employed in the Company. In 2022 the signing rate of labor contracts reached 100% and the social insurance
coverage rate also hit 100%.Natural disasters (earthquake strong convective weather such as typhoon rainstorm etc.) failure of the
Identified smoke discharge system due to manually welding by electric soldering iron falling from high altitude
emergency
events food hygiene (food poisoning) shut-down of water and electricity prevention of theft electric shock
(electric shock during withstand voltage test) fire heatstroke etc.In 2022 the signing rate the social insurance
of labor contracts reached coverage rate also hit
Organize an accident response group
An accident in the consisting of the manufacturing director
production area as the chief and leaders of the relevant 100% 100%
area as the group members
Organize an accident response group
An accident on the site consisting of a dispatched leader as
of clean energy users the chief and relevant staff as the group
members
Emergency
handling flow Supporting talent development
An administrative accident Organize an accident response group
such as natural disaster consisting of an administrative leader
and food poisoning as the chief and relevant leaders as the
Hoymiles Inc. respecting and supporting every employee’s career growth and value realization constantly improves
group members its employee promotion system and creates an employee incentive and evaluation mechanism. Keeping up with
the pace of industry and its own development and innovation the Company attempts to integrate training resources
optimize the training system to provide targeted systematic and forward-looking training for employees support
End Rehabilitate Report to functional the site departments employees to constantly improve their comprehensive qualifications and professional capabilities at different stages
of their careers and fully meet the dynamic needs of employees’ career growth.Results of
emergency handling
Accident
handling
Occurrence
of an accident
StartREPORTING MESSAGE FROM THE MAINTAINING ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF INSTRUCTIONS MANAGEMENT OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 47
Promotion and incentive Empowerment and training
Hoymiles Inc. committed to providing employees with a broad career development space has formulated employee
Promotion system training policies such as the Training Management System and the Internal Lecturer Management System building
a relatively complete internal training system including new recruits growth training front-line production and
management training and special skills training through online and offline training mechanisms in efforts to provide a
Based on the rank sequence system Hoymiles Inc. has formulated the Job Change Management System covering platform for employees of different levels and positions to grow rapidly.job transfer management promotion management demotion management and work handover to ensure the
standardization of the job change process. The system makes it clear that promotion should be made based on
rank giving priority to insiders. Three promotion channels have been set up namely management technology and
specialty to ensure that employees can concentrate on the long-term development of their strengths without having Different training mechanisms have been set up for new recruits with work
to worry about limitations to their development space and salary. The Company comprehensively evaluates the experience and those without work experience: For new recruits with work
candidates for promotion from the aspects of job matching performance violation of discipline etc. and provides experience the Company mainly devotes efforts to enhance their sense of identity
career growth space for excellent performers and contributors that matches their ability and contribution. New
recruits and belonging to Hoymiles and encourages them to quickly integrate into the
growth department; For new recruits without work experience in addition to cultivating
Incentive system training their sense of identity with the Company the Company enables them to get familiar
with their jobs as soon as possible through the guidance and demonstration of
full-time lecturers enhance their safety awareness and develop their ability of
independent thinking and independent learning.Hoymiles Inc. carries out employee evaluation activities on an annual basis and issues evaluationEmployee rewards at the end of the year. In 2022 three awards were set up for employees and 35 “excellentevaluation employees” 45 “outstanding new employees” and 42 “employees with long-term contributions”
were selected through departmental recommendation. Employee evaluation activities enhance Front-line Through training familiarize front-line producers with their job responsibilities
the enthusiasm of employees encouraging them to review their work annually and improve work production and and work processes and constantly improve their job skills. The training contents
details while providing a good opportunity for them to learn from each other and make progress management include company product knowledge organization and management methods
together. training etc. In addition some employees are provided with comprehensive quality training
to improve their basic accomplishments and meet the needs of the Company to
Hoymiles Inc. has formulated an develop reserve forces.Equity equity incentive plan according
incentive On October 26 2022 the Company held the 21st to the principle of reciprocity of
plan meeting of the first Board of Directors and the 19th incentives and constraints to meeting of the first Board of Supervisors deliberated Special
further establish and improve the Constantly improve employees’ special skills by providing professional open and passed the Proposal on the First Granting skill
Company’s long-term incentive courses (such as quality system training FMEA training power supply EMC of Restricted Stock to Employees Included in the training
mechanism attract and retain foundation and application) and general courses (such as product training Restricted Stock Incentive Plan in 2022 agreeing to
outstanding talents fully mobilize performance management and qualification training company-level safety set October 26 2022 as the first grant date granting
the initiative of the core team and education and training).restricted stock to 113 employees who met the grant
effectively integrate the interests conditions.of shareholders the Company’s
interests and the personal interests
of the core team.REPORTING MESSAGE FROM THE MAINTAINING ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF INSTRUCTIONS MANAGEMENT OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 48
Case Online digital platform “Hoymiles School” Work-life balance Communication with employees
In October 2022 the Company launched an online digital platform Hoymiles Inc. advocates work-life balance organizes colorful cultural Hoymiles Inc. continues to establish an open transparent two-way
“Hoymiles School” which integrates the functions of purchasing and sports activities such as employee sports meeting outdoor cycling communication environment with mutual trust listens to employees’ voices
external resources developing independent courses and delivering and hiking to enrich employees’ cultural life in their spare time supports and respects and fully guarantees employees’ right to know participate
theme courses on a monthly basis providing convenient online learning employees to train and improve their thinking ability creativity imagination vote and supervise enterprise management.channels for employees helping them to know their own learning and and willpower needed for work from rest entertainment and life and
training status in time effectively helping employees expand their enhances their sense of belonging and cohesive force. The Company sets up a monthly new employee seminar in collaboration
horizons and providing strong support for their learning. with the administrative department and the logistics department and does
its best to solve employees’ demands and ensure positive feedback to
employees with five sessions held in 2022; designs an annual questionnaire
survey to conduct research in six dimensions: salary and performance
teamwork organizational development company recognition training
development and communication and listen to employees’ demands and
opinions.Care for special groups
Hoymiles Inc. builds a working environment of “no prejudice” and “norestrictions” and safeguards the fair employment rights of ethnic minorities
The interactive interface and some courses of in efforts to establish a friendly and equal workplace. At the same time
Hoymiles School we fully protect the legitimate rights and interests of female employees
give them statutory maternity leave lactation leave pregnancy care leave
and maternity allowance in accordance with laws and regulations create
a warm and comfortable environment for breastfeeding and hold special
Friendly workplace environment activities for female employees from time to time to enrich their cultural life.Hoymiles Inc. strives to create a healthy and harmonious working
atmosphere actively promotes employee care and vigorously builds a
“home for employees” that they trust and like so as to alleviate the work
pressure of employees and inspire their vitality. At the same time the
Company establishes an efficient employee communication mechanism
to collect feedback and suggestions from employees through various
ways and approaches so as to build an equal and inclusive workplace
environment. In addition the Company provides protection for special
groups such as female employees and employees with difficulties further
enhancing corporate cohesion and constantly enhancing employees’ well- Female employees participate in a special event organized by Hoymiles Inc. on the
being. “March 8 International Women’s Day”REPORTING MESSAGE FROM THE MAINTAINING ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF INSTRUCTIONS MANAGEMENT VALUES ENVIRONMENT RESPONSIBILITY ESG PERFORMANCE APPENDIX 49OPERATIONS
Paying back to
society
Hoymiles Inc. strives to create social value with
Hoymiles characteristics in active response to the
national strategy of common prosperity with a
focus on the development needs of local society
in line with the social responsibility concept of
“taking from society and paying back to it” and by
organizing charity activities to enhance social well-
being such as helping low-income groups and
needy people and supporting needy students.To thank and give back to the care and support
of the society Hoymiles Inc. listens to the needs
of the society actively participates in charitable
donations and helps disadvantaged groups
actively performing the social responsibility with
concrete acts.Case The “Spring Breeze Action” in Gongshu District in 2022 Case 2022 annual charity fundraising by New-generation Entrepreneurs Association of Gongshu District
To further deepen the cooperation between Gongshu District and Changshan County display the new-
In February 2022 Hoymiles Inc. actively donated money in the “Spring Breeze Action” charity program in generation entrepreneurs’ responsibility of “common prosperity” in the new era and promote the economic
Gongshu District with the theme of “love from all walks of life to help people in difficulty.” The charity funds are and cultural exchanges between Gongshu and Changshan representatives of Hoymiles Inc. went to
used to help low-income groups and people in difficulty playing a positive role in improving people’s livelihood Changshan County Quzhou in December 2022 to participate in the pairing work of two districts for poverty
strengthening social governance and promoting the transformation upgrading and healthy development of relief and donated money to the 2022 “Mountain-Sea Cooperation” charity cause of the Gongshu District
the charity cause in Gongshu District. New-generation Entrepreneurs Association. All the money will be donated by the association to children in
the Changshan mountainous areas and used to support families of students with difficulties purchase school
teaching equipment and daily necessities for students.REPORTING MESSAGE FROM THE MAINTAINING CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 50
ESG performance
Economic performance
Indicator Unit 2022 2021 Indicator Unit 2022 2021
Total assets RMB 100 million 73.18 64.23 Major information leakages Time 0 /
Operating income RMB 100 million 15.37 7.95 Intellectual property
Net profit attributable to shareholders of the listed company RMB 100 million 5.33 2.02 Patent of invention Piece 32 19
Basic earnings per share RMB 9.51 4.80 Utility model patent Piece 44 41
Weighted average return on equity / 8.61% 42.20% Design patent Piece 8 6
R&D investment RMB 10000 9739.95 4578.17 Trademark Piece 70 64
Ratio of R&D investment to operating income / 6.34% 5.76% Software copyright Piece 62 54
Governance performance Social performance
Indicator Unit 2022 2021 Indicator Unit 2022 2021
Number of directors on the Board of Directors Person 9 9 Total number of employees under labor contract system Person 1131 652
Number of independent directors Person 3 3 Number of R&D personnel Person 213 106
Number of female directors Person 1 1 Number of new male employees Person 331 83
Number of supervisors on the Board of Supervisors Person 3 3 Number of new female employees Person 281 109
Number of internal supervisors Person 1 1 Number of ethnic minority employees Person 240 /
Number of external supervisors Person 1 1 Number of disabled employees Person 4 4
Number of resolutions passed at meetings of Board of Directors Item 37 22 Number of employees by gender
Number of meetings held by Board of Directors Time 12 6 Number of male employees Person 608 363
Attendance rate of directors / 100% 100% Number of female employees Person 523 289
Number of shareholders’ meetings Time 4 4 Proportion of female employees / 46.24% 44.33%
Number of meetings held by the Board of Supervisors Time 11 5 Number of employees by age
Information security Number of employees aged 35 and below Person 661 312
Data security training Time 2 / Number of employees aged 36 -55 Person 450 315
Data security training Person-time 286 / Number of employees aged 56 and above Person 20 25REPORTING MESSAGE FROM THE MAINTAINING CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE ESG PERFORMANCE APPENDIX 51OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
Indicator Unit 2022 2021 Indicator Unit 2022 2021
Number of employees by educational background Number of cooperative distributors/installers (both at home and
abroad) Distributor/installer 399 /Number of employees with master’s degree or above Person 79 34
Number of employees with bachelor’s degree Person 287 125 Percentage of failures in the total number of core products / 0.173% 0.178%
Number of employees below bachelor’s degree Person 765 493 Number of products to be recalled for safety and health reasons
out of the total number of products sold or shipped Piece 0 0
Protection of employee rights and interests
Labor contract signing rate / 100% 100%
Social insurance coverage rate / 100% 100%
Employee physical examination coverage rate / 100% 100%
2
Occupational health and safety Environmental performance
Number of work-related deaths Person 0 /
Indicator Unit 2022 2021
Proportion of work-related deaths / 0 /
Total office water consumption (including tap water reclaimed
Number of working days lost due to work-related injuries Day 100 / water and shared water) Ton 16054.03 /
Number of new occupational diseases in the year Case 0 / Total electricity consumption kWh 3237359 /
Number of accumulated occupational diseases in the enterprise Case 0 / Average energy consumption of a single product kWh/set 1.71 /
Number of employee safety training Term 2 / Diesel oil consumption Liter 3753 /
Number of emergency drills Time 1 / Total exhaust emission m3 11952000 /
Number of production safety accidents (according to national
standards) Time 0 / General solid waste
Annual safety investment RMB 10000 216 / Domestic waste Ton 7.70 /
Product liability Resource waste Ton 67.30 /
Number of customer complaints Case 0 0 Hazardous waste
Customer satisfaction / 92.46% 91.52% Silicone encapsulants Ton 40.29 /
Number of qualified suppliers Supplier 217 205
ESG risk review coverage / 90% 87%
Signing rate of supplier quality assurance agreement / 100% 100% 2The statistical caliber refers to the headquarters of Hoymiles Inc.REPORTING MESSAGE FROM THE MAINTAINING ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF INSTRUCTIONS MANAGEMENT OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 52
Appendix
Appendix I: GRI Indicators
GRI Indicators Interpretations Section GRI Indicators Interpretations Section
GRI 1 Foundation 2021 2-19 Remuneration policies Enabling inclusive growth for employees
1 Foundation 2021 Reporting foundations including publishing a GRI content index 2-20 Process to determine remuneration See the annual reportproviding a statement of use etc. GRI Standards for Sustainability Reporting
GRI 2 General Disclosures 2021 2-21 Annual total compensation ratio See the annual report
The organization and its reporting practices Strategy policies and practices
2-1 Organizational details About Hoymiles Inc. 2-22 Statement on sustainable development strategy ESG management
2-2 Entities included in the organization’s sustainability reporting Reporting instructions 2-23 Policy commitments ESG management
2-3 Reporting period frequency and contact point Reporting instructions 2-24 Embedding policy commitments ESG management
2-4 Restatements of information Reporting instructions 2-25 Processes to remediate negative impacts Upgrading the level of governance
2-5 External assurance Not applicable 2-26 Mechanisms for seeking advice and raising concerns Upgrading the level of governance
Activities and workers 2-27 Compliance with laws and regulations Upgrading the level of governance
Expanding global presence Strengthening 2-28 Membership associations Honors
2-6 Activities value chain and other business relationships supply chain management Optimizing
customer services Stakeholder engagement
2-7 Employees Enabling inclusive growth for employees 2-29 Approach to stakeholder engagement Communication with stakeholders
2-8 Workers who are not employees Not applicable 2-30 Collective bargaining agreements Not applicable
Governance GRI 3 Material Topics 2021
2-9 Governance structure and composition Upgrading the level of governance 3-1 Process to determine material topics ESG issue analysis
2-10 Nomination and selection of the highest governance body Upgrading the level of governance 3-2 List of material topics ESG issue analysis
2-11 Chair of the highest governance body See the annual report 3-3 Management of material topics ESG issue analysis
GRI 201 Economic Performance 2016
2-12 Role of the highest governance body in overseeing the management of impacts Upgrading the level of governance
201-1 Direct economic value generated and distributed Message from the management
2-13 Delegation of responsibility for managing impacts Upgrading the level of governance
201-2 Financial implications and other risks and opportunities due to Special Topic
2-14 Role of the highest governance body in sustainability reporting Not applicable climate change
2-15 Conflicts of interest See the annual report 201-3 Defined benefit plan obligations and other retirement plans Enabling inclusive growth for employees
2-16 Communication of critical concerns Communication with stakeholders 201-4 Financial assistance received from government Not disclosed
2-17 Collective knowledge of the highest governance body Upgrading the level of governance GRI 202 Market Presence 2016
202-1 Ratios of standard entry level wage by gender compared to local 2-18 Evaluation of the performance of the highest governance body See the annual report minimum wage Not disclosedREPORTING MESSAGE FROM THE MAINTAINING
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE
CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
VALUES ENVIRONMENT RESPONSIBILITY ESG PERFORMANCE APPENDIX 53OPERATIONS
GRI Indicators Interpretations Section GRI Indicators Interpretations Section
202-2 Proportion of senior management hired from the local community Not disclosed GRI 303 Water and Effluents 2018
GRI 203 Indirect Economic Impacts 2016 303-1 Interactions with water as a shared resource Active environmental management
203-1 Infrastructure investments and services supported Special Topic 303-2 Management of water discharge-related impacts Active environmental management
203-2 Significant indirect economic impacts Special Topic 303-3 Water withdrawal Active environmental management
GRI 204 Procurement Practices 2016 303-4 Water discharge Active environmental management
204-1 Procurement Practices Not disclosed 303-5 Water consumption Active environmental management
GRI 205 Anti-corruption 2016 GRI 304 Biodiversity 2016
205-1 Operations assessed for risks related to corruption Upgrading the level of governance 304-1 Operational sites owned leased managed in or adjacent to protected areas and areas of high biodiversity value outside protected areas Not applicable
205-2 Communication and training about anti-corruption policies and procedures Upgrading the level of governance 304-2 Significant impacts of activities products and services on biodiversity Not applicable
205-3 Confirmed incidents of corruption and actions taken Upgrading the level of governance 304-3 Habitats protected or restored Not applicable
GRI 206 Anti-competitive Behavior 2016 304-4 IUCN Red List species and national conservation list species with habitats in areas affected by operations Not applicable
206-1 Legal actions for anti-competitive behavior anti-trust and monopoly practices Upgrading the level of governance GRI 305 Emissions 2016
GRI 207 Tax 2019 305-1 Direct (Scope 1) GHG emissions Not disclosed
207-1 Approach to tax See the annual report 305-2 Energy indirect (Scope 2) GHG emissions Not disclosed
207-2 Tax governance control and risk management See the annual report 305-3 Other indirect (Scope 3) GHG emissions Not disclosed
207-3 Stakeholder engagement and management of concerns related to tax See the annual report 305-4 GHG emissions intensity Emissions Not disclosed
207-4 Country-by-country reporting Not disclosed 305-5 Reduction of GHG emissions Not disclosed
GRI 301 Materials 2016 305-6 Emissions of ozone-depleting substances (ODS) Not disclosed
301-1 Materials used by weight or volume Active environmental management 305-7 Nitrogen oxides (NOX) sulfur oxides (SOX) and other significant air emissions Not disclosed
301-2 Recycled input materials used Active environmental management Creating a green base GRI 306 Waste 2020
301-3 Reclaimed products and their packaging materials Creating a green base; Strengthening 306-1 Waste generation and significant waste-related impacts Active environmental managementsupply chain management
GRI 302 Energy 2016 306-2 Management of significant waste-related impacts Active environmental management
306-3 Waste generated Active environmental management
302-1 Energy consumption within the organization Active environmental management Creating a green base 306-4 Waste diverted from disposal Active environmental management
302-2 Energy consumption outside of the organization Active environmental management Creating a green base 306-5 Waste directed to disposal Active environmental management
302-3 Energy intensity Not disclosed GRI 308 Supplier Environmental Assessment 2016
302-4 Reduction of energy consumption Active environmental management Creating a green base 308-1 New suppliers that were screened using environmental criteria Strengthening supply chain management
302-5 Reductions in energy requirements of products and services Active environmental management 308-2 Negative environmental impacts in the supply chain and actions taken Strengthening supply chain managementCreating a green baseREPORTING MESSAGE FROM THE MAINTAINING CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 54
GRI Indicators Interpretations Section GRI Indicators Interpretations Section
GRI 401 Employment 2016 GRI 407 Freedom of Association and Collective Bargaining 2016
401-1 New employee hires and employee turnover Social performance 407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk Not applicable
401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees Protecting employees’ rights and interests GRI 409 Forced or Compulsory Labor 2016
401-3 Parental leave Protecting employees’ rights and interests 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor Protecting employees’ rights and interests
GRI 402 Labor/Management Relations 2016 GRI 410 Security Practices 2016
402-1 Minimum notice periods regarding operational changes Not disclosed 410-1 Security personnel trained in human rights policies or procedures Protecting employees’ rights and interests
GRI 403 Occupational Health and Safety 2018 GRI 411 Rights of Indigenous Peoples 2016
403-1 Occupational health and safety management system Protecting employees’ rights and interests 411-1 Incidents of violations involving rights of indigenous peoples Not applicable
403-2 Hazard identification risk assessment and incident investigation Protecting employees’ rights and interests GRI 413 Local Communities 2016
403-3 Occupational health services Protecting employees’ rights and interests
413-1 Operations with local community engagement impact assessments and development programs Not applicable
403-4 Worker participation consultation and communication on occupational health and safety Protecting employees’ rights and interests 413-2 Operations with significant actual and potential negative impacts on Not applicable
403-5 Worker training on occupational health and safety Protecting employees’ rights and interests local communities
GRI 414 Supplier Social Assessment 2016
403-6 Promotion of worker health Protecting employees’ rights and interests
Prevention and mitigation of occupational health and safety impacts 414-1 New suppliers that were screened using social criteria Strengthening supply chain management403-7 directly linked by business relationships Protecting employees’ rights and interests 414-2 Negative social impacts in the supply chain and actions taken Strengthening supply chain management
403-8 Workers covered by an occupational health and safety management system Protecting employees’ rights and interests GRI 415 Public Policy 2016
403-9 Work-related injuries Protecting employees’ rights and interests 415-1 Political contributions Not applicable
403-10 Work-related ill health Protecting employees’ rights and interests GRI 416 Customer Health and Safety 2016
GRI 404 Training and Education 2016 416-1 Assessment of the health and safety impacts of product and service categories Product quality management
404-1 Average hours of training per year per employee Supporting talent development
416-2 Incidents of non-compliance concerning the health and safety
Programs for upgrading employee skills and transition assistance impacts of products and services
Product quality management
404-2 programs Supporting talent development GRI 417 Marketing and Labeling 2016
404-3 Percentage of employees receiving regular performance and career development reviews Not disclosed 417-1 Requirements for product and service information and labeling Not disclosed
GRI 405 Diversity and Equal Opportunity 2016 417-2 Incidents of non-compliance concerning product and service information and labeling Not happened
405-1 Diversity of governance bodies and employees Governance Protecting employees’ rights and interests performance Governance performance 417-3 Incidents of non-compliance concerning marketing communications Not happened
405-2 Ratio of basic salary and remuneration of women to men Not disclosed GRI 418 Customer Privacy 2016
GRI 406 Non-discrimination 2016 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data Ensuring information security
406-1 Incidents of discrimination and corrective actions taken Protecting employees’ rights and interestsREPORTING MESSAGE FROM THE MAINTAINING CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 55
Appendix II: Reader feedback table
Dear readers:
Thank you very much for reading the Hangzhou Hoymiles Power Electronics Inc. 2022 ESG Report. We attach Open question:
great importance to and look forward to hearing your feedback on Hoymiles Inc.'s ESG management practice and
report. Your comments and suggestions are an important basis for us to constantly promote the enterprise’s ESG You are welcome to offer your comments and suggestions on Hangzhou Hoymiles Power Electronics Inc. 2022 ESG
management and practice. Your reply is greatly valued! Report:
Choice questions (please tick in the appropriate box):
1. Do you think this report reflects the ESG performance of Hoymiles Inc.?
Yes □ 　Neutral □ 　No □
2. Do you think the substantive issues identified herein are accurate and comprehensive?
Yes □ 　Neutral □ 　No □
Your contact information
3. Do you think the information provided herein is complete clear and accurate? Name:
Yes □ 　Neutral □ 　No □ Employer:
Job title:
4. Do you think the information provided herein is readable and easy to understand? Tel.:
E-mail:
Yes □ 　Neutral □ 　No □ Fax:REPORTING MESSAGE FROM THE MAINTAINING
INSTRUCTIONS MANAGEMENT ABOUT HOYMILES INC. ESG MANAGEMENT SPECIAL TOPIC COMPLIANCE
CO-BUILDING LONG-TERM PROTECTING THE GREEN POOLING THE POWER OF
OPERATIONS VALUES ENVIRONMENT RESPONSIBILITY
ESG PERFORMANCE APPENDIX 56
Open energy for all