歌尔股份:2021年度社会责任报告（英文版）

Goertek Inc.
2021 Corporate Social Responsibility Report
Stock Abbreviation: Goertek
Stock Code: 002241
March 29 2022
IAbout This Report
This is the 12th Corporate Social Responsibility Report released by Goertek Inc. (hereinafter
referred to as "Goertek" "the Company" and "we") covering the period from January 1 2021
to December 31 2021. The data from the Annual Report 2021 official documents and statistical
reports of Goertek are included in this report.This report has been prepared in accordance with the Shenzhen Stock Exchange Social
Responsibility Instructions to Listed Companies and the Self-regulatory Guidelines for Listed
Companies on Shenzhen Stock Exchange No.1 - Standardized Operation of Companies Listed
on the Main Board with reference to the ISO 26000: Guidance on Social Responsibility the
Guidelines for Preparing Corporate Social Responsibility Reports in China from the Chinese
Academy of Social Sciences and the T/CESA 16003-2017 standard from the China Electronics
Standardization Association. In addition based on GRI Standards for Global Sustainability
Reporting this report focuses on presenting the CSR strategy corporate governance and
performance improvement.This report is available in both print and electronic versions. To view the report online or obtain
an electronic version please visit the website of Goertek Inc. at http://www.goertek.com.Feedback
For any suggestions or doubts about this report you can provide the feedback by contacting us
and we appreciate your valuable feedback.Address: No.268 Dongfang Road High-tech Industrial Development District Weifang
Tel: 0536-3050543
E-mail:goertekcsr.list@goertek.com
IIContents
1. Corporate Governance ............................. 1
1.1. Company Profile ................................ 1
1.2. Corporate Operating Mechanism .................. 4
1.3. Stakeholder Communication ...................... 9
2. Technological Innovation and Service ............ 11
2.1. Technological Innovation Input ................ 11
2.2. Promotion of Green Products ................... 14
3. Employee Care ................................... 16
3.1. Respect for Employees and Protection of Their Legal Rights and Interests According to Law.....................................................17
3.2. Compensation and Benefits ..................... 19
3.3. Career Development and Growth of Employees .... 25
3.4. Employee Engagement and Communication ......... 32
4. Occupational Health and Safety .................. 37
4.1. Hazard Identification and Control ............. 38
4.2. Shaping A Sound Working Environment ........... 39
4.3. Protection of Employee Safety and Health ...... 44
4.4. Covid-19 Pandemic Prevention and Control ...... 47
5. Adherence to Green Operation and Continuous Efficiency Improvement and Emission
Reduction .......................................... 51
5.1. Environmental Management ...................... 51
5.2. Pollution Prevention and Control .............. 51
5.3. Resource Recycling and Climate Change Mitigat.. 53
6. Integrity In Business ........................... 61
6.1. Integrity Concept ............................. 61
6.2. Fair Competition .............................. 62
6.3. Anti-Corruption and Anti-Fraud ................ 62
6.4. Respect For Intellectual Property Rights ...... 64
6.5. Client-Oriented ............................... 66
6.6. Promotion of Common Growth With Suppliers ..... 70
7. Community Engagement ............................ 72
8. Outlook ......................................... 74
Table of Corporate Honors In 2021 .................. 75
Appendix: Gri Sustainability Reporting Standards I.. 78
General Disclosures ................................ 78
Materiality Disclosure ............................. 83
III1. Corporate Governance
1.1. Company Profile
Since its establishment in June 2001 and listing on the Shenzhen Stock Exchange in May 2008
Goertek Inc. has been a global high-tech innovator dedicated to serving the leading global clients
in the technology and consumer electronics industry providing them with vertically integrated
product solutions of precision components and smart hardware as well as the related design
R&D and manufacturing services.The Company's main business divides into three segments including precision components
business smart audio device business and smart hardware business. The precision components
business focuses on acoustics optics microelectronics structural components and other
precision components. The related products include micro speaker/receiver speaker module
haptic component (actuator) wireless charging device antenna MEMS microphone MEMS
sensors micro-system module VR optical component and module AR optical component AR
light engine precision structural parts and etc. The above-mentioned products are widely applied
in devices such as smartphones tablets smart wireless earphones VR AR smart wearable and
smart home devices. Smart audio device business focuses on providing products related to audio
voice interaction artificial intelligence and other technologies. The main products include smart
wireless earphones (TWS) wired/wireless earphones smart speakers etc. Smart hardware
business focuses on providing products related to entertainment health and home security. The
main products include VR AR smart wearable products gaming consoles and accessories
smart home products etc.The Company has innovative competitive advantages in the fields of acoustics optics MEMS
microelectronics and precision manufacturing and owns many intellectual property rights in the
field of precision parts and components. In addition the Company has accumulated rich
experience in projects by cooperating with industry-leading clients in the field of smart audio
device and smart hardware through "ODM" "JDM" and other business modes. During the
reporting period the Company maintained a good long-term cooperative relationship with
leading clients in the global technology and consumer electronics industry kept growing in the
1number of patent applications and in technological capabilities. As a result the company has
been constantly recognized by global clients for its product solutions and service capability and
remains being an industry-leading manufacturer in the fields of micro speakers MEMS
microphones MEMS sensors TWS VR products smart wearable products gaming console and
accessories etc.During the reporting period due to the continuous growth of demand of smart hardware products
such as VR TWS smart wearable products gaming consoles and accessories and the related
precision components the Company has achieved significant growth in revenue and net profit.At the same time the Company further improved its position in the industry. During the reporting
period the Company won many honors including being ranked the 3rd company in the Top-100
China electronic component enterprises based on comprehensive economic indexes the 86th
company in the Top-500 private enterprises in China's manufacturing industry the 164th
company in the Top-500 private enterprises in China as well as being the executive member
company of CITIF.For other information of the Company see the Company's Annual Report 2021.* Mission
A better life enriched by technology
* Vision
To be a great company
* Core values
Client-orientation employee development trustworthy and pragmatic cooperation and
mutual benefits
* Management philosophy
Cultivation and ingenuity constant improvement create core competence of leading reform.* Cultural slogan
2We make we share we thrive.
Our mission is the overarching orientation of the Company's value of existence ultimate goal
and social responsibility. A better life that integrates health and beauty is the ultimate pursuit of
mankind. It also serves as the ultimate goal of the Company that is committed to creating value
for society with the application of technology. It has been our mission to develop cutting-edge
modern technology and to integrate humanistic spirit into product design so as to create artistic
products that lead future lifestyles convey the concept of a better life and satisfy people's pursuit
of a better life.Our vision is a general overview of the Company's prospect and development as well as a long-
term goal to be continuously pursued and a realm to be achieved in its future development. Our
vision of "To be a great company" is not only an inheritance of the excellent cultural value of
the past but also an inherent demand and expectation for future development. With continuous
endeavors in innovation products services and brand the Company aims to become a world-
class high-tech company thus creating maximum value for clients employees partners and
society and earning their respect.Our core values are the basic value orientation followed by the Company and also the core
principle and value judgment standard for guiding employees' behaviors. The consensus has
been reached on the core values of "client-orientation employee development trustworthy and
pragmatic cooperation and mutual benefits" through extensive discussions. The core values are
the beliefs to be revered the purposes to be pursued and the judgment standard to be relied upon
which shall be continuously strengthened in the whole process of production and operation thus
enabling all employees to consciously bear values in mind and put them into actions.Our business philosophy is a philosophical reflection on the Company's business policy business
strategy and management style. The Company is committed to the relentless pursuit of high
quality and ambitious goals and dedicated to innovating product technology and manufacturing
techniques thus creating excellence with continuous improvement. Meanwhile we actively
embrace transformation and efficiently keep accumulating the knowledge skills tools methods
and resource integration ability required for transformation so as to lead the sustainable
3development of the Company with transformation and shape our core competitiveness of
"leading power of transformation"."We make we share we thrive" is the cultural slogan of Goertek. The Company advocates the
cultural concept of "being together". Based on the common pursuit the Company forms a
community of shared cause interests and destiny together with clients employees suppliers
and society so as to create products for a better life together share the achievements and honors
together and grow in the process of value creation together.Culture serves as the cornerstone of corporate survival and development and an essential part
of the core competitiveness of the Company. In 2021 based on the organizational culture
assessment the Company focused on the problems identified in the organizational culture
assessment of each department and formulated improvement measures accordingly so as to
enhance the corporate culture recognition and employees' experience. The cultural philosophy
being promoted features integrity loyalty diligence initiative responsibility objectivity
fairness professionalism and pragmatism. The client-orientation strategy transformation project
is carried out to closely integrate culture construction with business and enhance the management
of the Company. In the meantime the Company has strengthened the effect of honor incentives
by upgrading its company-level honor system. This has refined the Company's concept of talents
and elevated employees' sense of achievement thus effectively guaranteeing the implementation
of the Company's culture and forging consensus among all employees.
1.2. Corporate Operating Mechanism
1.2.1. Operation of the Board of Directors
During the reporting period the Company continuously improved the corporate governance
structure the internal management and control system and continued to carry out corporate
governance activities in strict accordance with the requirements of relevant laws regulations and
normative documents such as Company Law Securities Law Corporate Governance of Listed
Companies Rules Governing the Listing of Shares on Shenzhen Stock Exchange as well as with
relevant documents of China Securities Regulatory Commission and the relevant instructions of
4Shandong Securities Regulatory Bureau so as to further standardize the Company's operation
and improve the level of corporate governance.By the end of the reporting period the actual practice of corporate governance met the relevant
requirements of the above laws administrative regulations departmental rules and normative
documents on the governance of listed companies and no documents concerning administrative
supervision measures taken by the supervised departments was received.By the end of the reporting period the details of actual practice of corporate governance are as
follows:
1. Shareholders and shareholders' meetings: The Company has convened and held shareholders'
meetings in strict accordance with the Rules for General Meeting of Shareholders of Listed
Companies and the Company’s Rules of Procedure of Shareholders' Meetings so as to ensure
that all shareholders especially minority shareholders enjoy equal status and fully exercise their
rights; In addition lawyers were engaged to witness the legitimacy of the convening holding
and voting procedures of each general meeting of shareholders.
2. The Company and controlling shareholders: The Company with independent business and
operation autonomy is independent of the controlling shareholders in business personnel assets
organizations and finance. The Board of Directors Board of Supervisors and internal institutions
of the Company operate independently. The controlling shareholders exercise their rights
through shareholders’ meeting and there was no direct or indirect interference with the
Company’s operations and decision-making beyond the general meeting of shareholders.
3. Directors and the Board of Directors: The Company elects directors in strict accordance with
the selection and appointment procedures stipulated in the Articles of Association. There are
three independent directors in the Board the number of directors and the composition of the
Board of Directors meet the requirements of laws and regulations and the Articles of Association.All directors can carry out their work in accordance with Rules of Procedure of the Board of
Directors and Working System for Independent Directors they attended all the Board of
Directors meetings and all the related trainings as required.
54. Supervisors and the Board of Supervisors: The election of supervisors and the composition of
the Board of Supervisors were in strict accordance with relevant provisions of Company Law
and Articles of Association. The Company's supervisors strictly followed the Rules of Procedure
of the Board of Supervisors. All supervisors scrupulously attended the sessions seriously
fulfilled their duties diligently and supervised and issued opinions for major issues related-party
transactions and financial status.
5. Performance appraisals and incentives: The Company has gradually improved its fair and
transparent performance evaluation standards and incentive a restraint mechanisms for directors
supervisors and senior management. The appointment of Company’s senior management is open
and transparent and in line with the provisions of laws and regulations.
6. Stakeholders: The Company fully respects and safeguards the legitimate rights and interests
of stakeholders actively communicates and coordinates with stakeholders to balance the
interests of the society shareholders the Company employees and other parties and jointly
promotes the Company's development in a sustainable and steady manner.
7. Information disclosure and transparency: The Company duly performed the disclosure
obligations in accordance with the provisions of Rules Governing the Listing of Shares on
Shenzhen Stock Exchange Articles of Association and Investor Relations Management Rules
and discloses information as per the law so as to ensure that the information disclosure is true
timely accurate and complete. All shareholders were given equal access to the information. The
Company has gradually revised and improved the Insider Information Management Rules
further improved the insider information management strengthened the confidentiality of insider
information maintained the fair principle of information disclosure and protected the legitimate
rights and interests of investors. The Company has appointed the secretary of the Board of
Directors as the head of investor relations management of the Company responsible for the
Company's information disclosure and investor relations management. The Company has
designated Securities Times China Securities Journal Shanghai Securities News Securities
Daily and cninfo.com.cn to disclose Company’s information in a faithful accurate and timely
manner strictly in accordance with relevant laws and regulations so that all shareholders have
a fair chance to get information.
6For other information on the operation of the Board of Directors and corporate governance of
the Company see Section IV: Corporate Governance of the Company's Annual Report 2021.
1.2.2. Operation of the CSR Management Committee
Upholding with the core values of "client-orientation employee development trustworthy and
pragmatic cooperation and mutual benefits" and the corporate social responsibility of "law-
abiding employee respecting sustainable developing and give back to society" Goertek
actively pursues the unity of corporate social responsibility and economic growth. Our CSR
management philosophy defines that while pursuing profits we should always act as a
responsible global corporate citizen. We always take shareholders and creditors employees
clients communities and sustainable development as our own responsibility actively facilitate
the fulfillment of stakeholders' social responsibilities protect employees' legitimate rights and
interests engage in environmental protection and public welfare activities and boost the
coordinated and harmonious development of the Company and society.Since its establishment Goertek has gradually set up its quality environmental and occupational
health and safety management systems and passed the certification of ISO9001 ISO14001 and
ISO45001 and introduced the EU WEEE/RoHS Directives. In 2005 the Company was certified
by the ISO/TS16949. In 2007 the Company founded its occupational health and safety
management committee and a dedicated company-level division to take full responsibility for
the OH&S system for employees. In 2009 a hazardous substances management system was set
up and the Company was certified by the IECQ QC080000. It was further certified by the
IEC17025 in 2010 and by National Integration of Informatization and Industrialization
Management System the China AEO Certificate by China Customs the GB/T29490-2013 and
the ISO/IEC27001:2013 Information Security Management System in 2016. In addition to these
certifications Goertek studied international CSR standards such as SA8000 and formally
implemented the CSR system since 2011 and timely benchmarked with industry standards and
obtained external opinions in line with ISO26000 China Electronics Standardization
Association standard T/CESA 16003-2017 and other international standards (such as GRI
Standards and RBA Code of Conduct) as well as requirements of various stakeholders.
7In order to facilitate its CSR efforts Goertek formally established the CSR Management
Committee in 2013. In 2021 the Company continued to optimize and improve the scope and
responsibilities of the CSR Management Committee based on its business adjustment so as to
better meet the requirements of various stakeholders in the field of CSR. Moreover we have
established the committee operation mechanism to continuously upgrade the company's CSR
governance and improve the overall decision-making and operational efficiency of the
committee. The current organizational structure of the CSR Management Committee as follow:
CSR Management
Committee
Related Subsidiary/Platform
Business Group
Professional Teams Management Team
Steering Team
Human Resource (HR)
EHS
Ethics
Investors/Clients
Government/Supply Chain
The President of the Company serves as the Head of the CSR Management Committee and the
core management of the Company's Vice President or above serves as the member of the
Committee who is responsible for decisions on the overall CSR policy of the Company. The
CSR Management Committee consists of a dedicated team responsible for formulating CSR-
related rules and regulations and assisting in the formulation of CSR strategic objectives and
work planning. The Committee coordinates the CSR work of various teams provides guidance
coordination supervision inspection and evaluation of their work and assists in the organization
of CSR meetings events and other CSR management coordination work. The CSR Management
Committee convenes a decision-making meeting at least once a year to discuss relevant issues
and report on work progress. All related professional teams communicate with stakeholders on
CSR management concepts objectives policies and practices and provide the feedback on the
demands of stakeholders to the dedicated team of CSR Management Committee for review. The
8Business Group Management Team formulates annual work plans and regularly reviews work
progress.In addition a standardized CSR target indicators and management plan have been developed.The CSR Management Manual as the overarching guideline for Goertek to advance its CSR
work covers various business areas including targets for client satisfaction employee
satisfaction intellectual property electricity consumption per unit output value number of
environmental accidents OH&S management and HSPM which are integrated into the
performance assessment of each department thus strongly promoting the organic integration of
social responsibility management and daily operation.
1.3. Stakeholder Communication
By continuing to dynamically identify stakeholders and maintain good communication with
them Goertek is able to promptly understand their reasonable expectations and demands learn
from their advanced ideas and actively listen to their suggestions for the Company's
development which is crucial for the sustainable development of Goertek. In order to effectively
communicate with stakeholders on a continuous basis Goertek has set up various
communication channels through departments of marketing product technical support
securities human resources labor union and sourcing to engage with stakeholders around CSR
management concepts objectives policies and practices which are then disclosed via this report
and the corporate website.The following are the main stakeholders communication channels and their main topics of
concern:
Stakeholders Major communication channels Main topics of concern
Shareholders' meeting Business status and information
Shareholders and Board meeting on significant matters
creditors Investor communication Survey on the fulfillment of
meeting and letter survey corporate social responsibility
9Bondholder meeting
Corporate development strategy
and supply chain capabilities
Client satisfaction survey
Compliance
Clients Client visit
Employee health and safety
Special seminar
Green products
Product safety
Corporate development strategy
Employee satisfaction survey and mid- and long-term planning
Employee reception day Employee compensation and
Employees Employee proposal system benefits
Employee seminar Employee training and
Suggestion box development
Employee health and safety
Fair procurement integrity and
honesty
Supplier conference
Fulfillment of social
Suppliers Supplier review
responsibility commitments
Special seminar
Green products
Product safety
Science and technology
Universities and Academic cooperation innovation
research institutes Seminar Intellectual property rights
Talent cultivation
Compliance
Work meeting Corporate development strategy
Government Work report Corporate governance
Work inspection Job and employment
Taxation compliance
10Product quality
Environmental protection and
occupational safety
Special interview Corporate development strategy
Media
Information disclosure Corporate governance
Public welfare activity Community progress and
Forum development
Communities
Participation in community Environmental protection
projects Public welfare activity
2. Technological Innovation and Service
2.1. Technological Innovation Input
2.1.1. Innovation Culture
"Cultivation and ingenuity constant improvement" is Goertek's unremitting pursuit. Goertek
actively implements the core value of "employee development" and encourages technological
innovation placing great emphasis on technical research and craftsmanship. By establishing a
refined and diversified career development path for R&D engineers the Company continuously
improves the professional skills and innovation ability of R&D engineers through job
qualification requirements and a perfect training system and resources. Meanwhile it clearly
defines technological innovation achievements as a key criterion for employment and promotion
effectively stimulating the growth potential and innovation vitality of R&D engineers and
helping R&D engineers to continuously attain professional achievement and grow together with
the Company.
2.1.2. Gathering Talents
Talent is the top resource for corporate development. In recent years the Company has firmly
adhered to the strategy of strengthening the Company by introducing nurturing and employing
talents continuously optimizing the environment for talent development and promoting the
integration of the "talent chain" with the "industry chain" and "innovation chain" which has
11provided solid intellectual support for the Company to become one of the top 500 enterprises in
China and the only enterprise in China to rank among the global top 10 in the field of MEMS.Goertek insists on developing global channels to attract and recruit all types of domestic and
international talents. With regard to attracting talents Goertek has perfected its talent
introduction mechanism with the Chairman taking the lead as the "talent introduction specialist".Relying on its HR department the Company has appointed "talent liaison officers" to ensure a
full chain of talent contact services. Its talent introduction plan is also implemented by category
according to the characteristics of talents at different levels. In addition the Company has
innovated the talent introduction mode and set up R&D centers targeting the frontiers of the
world's scientific and technological innovation to attract world-class high-end technical talents
locally. Besides a platform for talent introduction has been established. Goertek has jointly
established the research institute with the government and universities. In 2021 the Company
was recognized as the outstanding municipal sci-tech innovation platform for introducing and
nurturing talents and the excellent provincial new R&D institution.Goertek actively builds a platform for talent development and formulates differentiated
development channels for new talents and helps them draw up career development plans
thereby boosting the integration of talent value and career development. R&D platforms give
full play to the "innovation ability" of talents. Goertek has approved 8 national and provincial
innovation platforms and jointly established the research institute with many well-known
universities. Financial support has been granted to the scientific research projects carried out by
talents relying on the platforms and institutes and over 50 scientific research achievements have
been industrialized successfully. A number of awards have been obtained including the national
champion of manufacturing the fourth China Quality Award and the first prize of the 6th
Mayor's Cup Industrial Design Competition. Through projects talents are trained to command
stronger "breakthrough capacity". With a focus on 5G AI and IoT technologies the Company
encourages all types of talents to build teams for independent innovation and problem solving
thus creating a "high-grade precision and advanced" talent team. The Company has also joined
hands with universities to shape the "competence" of talents. Exchange training programs are
carried out jointly with top universities and research institutes at home and abroad including the
12"joint training base for graduate students in industry-education integration" with Shandong
University and the "excellent engineer class" for undergraduate students with the School of
Opto-electronic Engineering at Changchun University of Science and Technology. Besides a
"new model" for skill cultivation has been developed with the establishment of a three-level
education and training system comprised of the Goertek College workshop training and online
classes. Expert lectures and technical trainings are held regularly. In addition a "2+1+1" training
model for undergraduate manufacturing engineers has been proposed.With heartfelt affection for talents Goertek strives to create an "excellent ecology" for talent
retention with the help of distinct positive incentives. With the launch of the talent performance
improvement campaign the Company has been honoring employees' compensation according
to their work performance. Some outstanding talents have their compensation doubled. Efforts
have been made to create a favorable environment for employees in terms of training housing
subsidies medical care medals for seniority employee hotlines and loving assistance so as to
retain talents with satisfactory compensation promising career development and earnest
affection.
2.1.3. Innovation Mechanism and Investment
As an innovative high-tech company with global presence Goertek attaches great importance to
its R&D investment and technological innovation. In order to promote technological competence
facilitate technological innovation and strengthen R&D capabilities the Company has
established its Technology Committee with seven specialized technology sub-committees that
are responsible for the enhancement of technological competence in each professional field. We
have carried out the construction of Integrated Product Development (IPD) system in phases
and established a cross-discipline core team in the field of product development as well as
strengthening the Decision Check Point (DCP) based on the comparison with industry
benchmarks and our actual business thus accumulating the best practices in the industry. The
representatives of each field are responsible for the quality planning acceptance and
improvement in their own field. By minimizing the possible risks in the product design process
improving the market awareness of R&D personnel and enhancing their foresight we are able
13to maximize corporate profits.
Over the past five years the Company has invested a total of over RMB 13 billion in R&D. Its
R&D investment in 2021 totaled over RMB 4.3 billion accounting for 5.50% of its operating
income. The central research institute and system solution center have been established at the
corporate level and business group level. With Weifang and Qingdao centers as the core
supplemented by Shenzhen and Dongguan centers a global R&D model of "double core + multi-
location synergy" is created to stay close to forefront of technical talents plan on promoting new
technology research and reserve technology and talents for the future development of the
Company. Meanwhile by closely following the frontiers of technological innovation identifying
potential opportunities of technology and monitoring the technology trends in real time we are
able to steer the direction for the technology development of the Company. Our continuous
increase in R&D investment has further enhanced the competence of our product solutions in
the global market.
2.2. Promotion of Green Products
Goertek has always been committed to using safer materials to produce safer products. Our
policy for the management of hazardous substances is "Complying with laws and regulations
promoting green manufacturing providing environmentally friendly products and satisfying
clients' needs". The Company has established a professional team for green product management
thus gaining recognition from well-known clients in the industry. With great importance attached
to environmental compliance the green product management division has been under the direct
supervision of the Company. In 2021 Goertek made numerous breakthroughs in its green
product management especially in term of raising the awareness of all employees on
environmental compliance the effective operation of the hazardous substances process
management system the comprehensive IT-based operation of the Company's environmental
compliance data and the interpretation and response to the latest dynamics of regulations and
client requirement.In 2021 we inquired a total of 95 green product-related regulations and interpreted the updated
hazardous substance specification of 8 key clients to effectively identify and ensure the
14continuous compliance of our products. The Interpretation of Hazardous Substances
Regulations for Electrical and Electronic Products was released for the first time in January as
a monthly newsletter totaling 12 issues. Study sessions were organized among all employees to
facilitate learning of product environmental regulations. In July the Company launched an
online course on knowledge of environmental regulations enabling online induction training for
new employees. In November when the pandemic situation was severe the Company actively
cooperated with third-parties and implemented online environmental compliance training for
suppliers for the first time which effectively raised the environmental awareness of all
employees and suppliers.In 2021 Goertek successfully passed the IECQ QC080000 system certification renewal audit
and also gained certifications for seven new product ranges. Our hazardous substances process
management system was running effectively with positive recognition from clients.The Company continues its vigorous efforts to optimize the IT-based management of data. By
the end of 2021 all environmental compliance data of suppliers had been uploaded onto the
Company's Supplier Collaboration System enabling full IT-based management.In addition the Company adequately owns 15 sets of XRF testing equipment and a high-end
chemical testing laboratory. Equipped with ICP-OES GC-MS IC UV-Vis and other testing
equipment the laboratory passed the accreditation of China National Accreditation Service for
Conformity Assessment in 2010 and obtained ISO/IEC 17025 laboratory qualification
(certificate number: CNAS L4750). It passed the renewal re-accreditation in 2016 and the
expansion re-accreditation in 2020 making its accreditation continuously valid.
153. Employee Care
People create the corporate value. Human resources is Goertek's key resources and fundamental
components of Goertek's core competitiveness. On top of complying with laws and regulations
and the Code of Conduct of the Responsible Business Alliance (RBA) Goertek further advocates
the cultural slogan of "We make we share we thrive" committed to creating a safe and
comfortable working and living environment for its employees protecting their legitimate rights
and interests and caring for their welfare and career development. Goertek listens to employees'
voices through various employee communication channels and based on their feedback tailors
its compensation and benefits policies and improves its management system. In addition the
Company implements a "first-class talent" strategy and builds multiple career training platforms
and promotion channels to facilitate the training and development of human resources and
achieve all-round care for employees in work and life thereby achieving common growth with
them.The total number of Goertek employees was 95780 in 2021 serving in different businesses of
Goertek as detailed below:
16Employee Composition
Position category The number of people in each section
Production person 69815
Sales person 670
Technical person 19753
Financial person 306
Administrative person 5236
Total 95780
Education background
Education background category The number of people
Doctor 78
Master 3435
Bachelor 16170
Junior college 18823
Below junior college 57274
Total 95780
3.1. Respect for Employees and Protection of their Legal Rights and Interests According
to Law
Goertek pursues the culture concept of "We make we share we thrive" and fully respects each
and every employee. The Company fully implements the Labor Law of the People's Republic of
China the Labor Contract Law of the People's Republic of China and the Social Insurance Law
of the People's Republic of China among other relevant laws and regulations and has
established corresponding management rules and regulations to ensure that all discrimination in
relation to race color age gender sexual orientation disability pregnancy religious belief
political affiliation geography association membership or marital status and other factors that
generate discrimination are prohibited in the recruitment employment training promotion
compensation and benefits. The Company enters into labor contracts with its employees on the
basis of equality voluntariness consensus honesty and credibility in accordance with laws and
fully fulfills its labor contract obligations. In the context of the normalization of pandemic
17prevention and control the Company has innovated a new model of "Internet + labor contract"
and launched a nationwide electronic labor contract signing system to improve employees'
experience effectively protect their legitimate rights and realize the unity of employee value
company value and social value.We conduct employee management in compliance with laws and regulations and strictly enforce
the compensation standards as required by the government. Forced labor is strictly prohibited
and the three measures of process and system training and communication and supervision and
inspection are applied to avoid forced labor harassment and abuse so that employees' freedom
of employment is respected and modern slavery is eliminated. In addition the Company
explicitly prohibits the employment of child labor in its recruitment system and adopts the "five-
step method" of identity confirmation at interviews to ensure that employees' identities are real
and valid so as to avoid child laborers from mistakenly joining the Company. Also the Company
has formulated remedial measures for child laborers to effectively implement its child labor
protection obligations.Special employees are treated with great care in Goertek. In accordance with the Employment
Promotion Law of the People's Republic of China and the Law of the People's Republic of China
on the Protection of Disabled Persons the Company respects equal employment opportunities
for special groups such as disabled persons and guarantees fair and just treatment in terms of
labor protection and job adjustment. Meanwhile according to the Law of the People's Republic
of China on the Protection of Women's Rights and Interests and the Special Rules on the Labor
Protection of Female Employees the Company strictly protects the legitimate rights and interests
of female employees during the "three periods" namely pregnancy maternity leave and nursing
period and reduces the workload of pregnant female employees who are unable to take up their
previous work or assigns them to other work that they can adapt to.The protection of employees' legitimate rights and interests has further strengthened the cohesion
of the Company creating a multi-win pattern of harmonious labor relations.
183.2. Compensation and Benefits
Goertek practices the culture concept of "We make we share we thrive". In 2021 the Company
continued to emphasize the attraction motivation and retention of talents and implemented a
competitive and high-performing compensation incentive policy and benefits care. Through
optimizing the distribution mechanism employees could share the growth of corporate
profitability.Despite the challenges of the pandemic and the unfavorable economic environment in 2021 the
Company still insisted on its annual compensation review and adjustment resulting in
continuous and stable growth of employees' incomes. For core positions key groups and high-
end talents that support the strategic new business development of the Company a special
compensation adjustment policy has been implemented to effectively achieve the precision talent
attraction and retention. To further reserve talents for the sustainable and sound development of
the Company the compensation level of fresh graduates has been continuously and vigorously
raised and a "moat" special retention incentive has been offered to the identified outstanding
university students.In addition to providing competitive compensation the Company has been providing stock and
option incentive plans for its core employees so that more and more core employees can share
the value growth of the Company. The number of stockholders has further increased in recent
years through the continuous innovation of the equity incentive mechanism. Benefiting from the
continuous rise of the Company's share price in recent years employees have enjoyed a steady
increase in their annual exercise proceeds and long-term incentives have become a key way to
attract retain and motivate employees to make joint efforts to boost company growth.The compensation of directors and supervisors of the Company is proposed by the Compensation
and Appraisal Committee of the Board of Directors. After review and approval by the Board of
Directors it shall be submitted to the Shareholders' Meeting of the Company for approval before
implementation. The compensation standards of senior management shall be proposed by the
Compensation and Appraisal Committee and implemented after deliberation by the Board of
Directors. In addition allowances for independent directors shall be paid on a regular basis.
19In addition Goertek is committed to building a diversified welfare system with its own
characteristics. Free physical examination accommodation shuttle bus and tailored transit are
provided to all employees; the 1st 3rd and 5th anniversary and 10-year and 20-year loyalty and
diligence exclusive activities are carried out for employees; colorful employee activities such
as Cultural Street of Mid-Autumn Festival mass wedding and employee family days are held;
the Employee Assistance Program (EAP) legal aid family+mutual aid fund and 99 public
welfare days are offered to employees and their families aiming to bring happiness to employees
in all aspects and enhance their welfare satisfaction.To foster employees' diversified interests and create a healthy living climate each industrial park
in Weifang is equipped with a variety of leisure and entertainment facilities including outdoor
soccer fields basketball courts running tracks and fitness areas as well as staff activity centers
with standardized indoor facilities (table tennis badminton billiards fitness facilities staff
library dance/yoga rooms consultation rooms and club rooms). Moreover 12 interest clubs
have been established based on employees' interests which include the empowerment and
enhancement clubs namely the photography club the reading club and the calligraphy and
painting club the sports and fitness clubs namely the basketball club the soccer club the
badminton club the table tennis club the cycling association and the yoga club and the quality
of life clubs namely the matchmaker club the singing and dancing club and the traveling club.Based on these clubs and corporate culture the Company held a number of cultural activities in
2021 including Spring Festival couplet writing with blessings Lantern Festival mass wedding
youth bonding basketball tournament Cultural Street of Mid-Autumn Festival New Year's
shopping Festival ping pong and badminton league and cycling which greatly enriched the
spare-time cultural life of employees.
20Besides the physical health the mental health of its employees is also of great concern to the
Company. To care for employees' mental health and strengthen the humanistic care for them the
Labor Union together with the Human Resources Department and the Employee Management
Department launched multifaceted explorations on how to enhance employees' happiness in
October 2020. After enterprise benchmarking the EAP project was officially initiated in May
2021 under the guidance of professional consulting organizations. A special EAP project team
was set up to carry out EAP services comprehensively. By the end of 2021 the EAP program
had been running for half a year with six service projects carried out altogether including 7*24
hotline for psychological counseling training of corporate mental health managers holistic
health counseling mental health assessment training for new employees known as "Goertek
Wings" and crisis intervention and management. In the coming years we will also carry out
EAP-themed training and empowerment program for different groups so that EAP services can
benefit more people and truly achieve maximum value.Employees may inevitably encounter legal disputes and traps in their life and work which can
cause various troubles. We aim to provide better legal services to employees and meet their needs
for legal support as well as to further educate employees on legal knowledge so that they can
truly enjoy the legal services at their doorstep. Starting from 2020 the Labor Union has joined
21hands with the Legal and Intellectual Property Management Department of the Company to
launch the Legal Service Day. In 2021 our legal service team continued to grow with more than
10 legal experts in handling cases. In respect of civil and criminal services the coverage was
expanded from two parks namely Weifang Electroacoustic Park and Photoelectric Park to the
R&D building in Qingdao. On the Legal Service Day two to three legal experts will be available
in each industrial park to provide one-on-one legal consultation offering professional and
detailed legal advice to our employees. Over 240 cases of legal consultation were received in
2021 with the main topics of consultation being real estate disputes marriage and family affairs
personal loans and traffic accident disputes. Experts will provide continuous legal services
according to the actual situation of each employee. After two years of development the Legal
Service Day has successfully set up a bridge between the Company and its employees not only
helping employees to solve difficult legal disputes but also educating them on common legal
knowledge and promoting the sound culture of "knowing the law understanding the law and
abiding by the law" within the Company. As the legal awareness of employees continues to rise
over time the demand for legal advice will increase as well. The Legal Service Day will continue
to follow the needs of employees exert greater value and fulfill its role as a "legal back-up" for
employees.In addition the Company has built a platform offering universal benefit "Goertek Welfare Mall"
by integrating internal and external resources and regularly organizes group purchase activities
for leisure and entertainment life services daily necessities internal purchase of electronics and
holiday stuff so that employees can truly enjoy the benefits and convenience. In 2021 26 group
purchase activities were conducted with 700000+ views 100000+ visitors to the mall 35
22newly introduced partners and 20000+ participants saving a total of more than 1.8 million
RMB for employees. These activities such as themed group purchase activities for traditional
and electric vehicles home appliances Mid-Autumn Festival & Chinese New Year festival items
were highly popular among employees.In order to get employees fully involved in the brand growth of Goertek the mascot of Goertek
— Goerboy — was launched and its image was upgraded in 2021 reaping the love of many
employees quickly with its three-dimensional image. Its lively and lovely image of intelligent
robotic doll has deepened the emotional bond between Goertek and its employees. With the
mascot as the spokesperson a creative call for brand enhancement has been launched. Moreover
through such forms as Goerboy's online science education videos employees are able to promote
their professional knowledge reserves. A variety of new peripheral products have been created
modeling the mascot such as dolls dazzling laser bags cartoon canvas bag sets multifunctional
cartoon card holders metal keychains cartoon balloons of Goerboy refrigerator sticker sets
mugs notebooks emoji calendars and stickers gaining great popularity among employees.Goerboy appeared in scenarios such as Goertek's 20th anniversary celebration Goertek Sports
23Meeting Goertek mass wedding Loyalty and Diligence Award Ceremony Goertek Cultural
Street of Mid-Autumn Festival and all-media communication platforms thus enabling
employees to perceive a real connection with the mascot and experience Goertek's warmth and
thus enhancing their sense of belonging.In 2021 the Labor Union of our Vietnam subsidiary also organized a number of significant
activities aiming to improve the welfare of employees. For example gifts were provided to
employees on International and Vietnamese Women's Day Mid-Autumn Festival Vietnam
Liberation Day International Labor Day and other such holidays; during the Chinese New Year
in addition to gifts for employees a special bus was arranged to ensure that employees got home
safely for the holiday; monthly birthday parties were hosted for all employees with special
birthday gifts prepared. Besides lucky draws were arranged during the festival and annual
meetings of the Vietnam subsidiary and gifts were presented to those lucky ones. In order to
recognize and encourage employees with significant contributions in their work and to inspire
their work enthusiasm the Vietnamese subsidiary organized a Commendation Conference for
Outstanding Employees in 2021. During the Conference the outstanding employees were highly
recognized for their dedication and efforts. The Company expected that they could maintain their
24excellent characters continuously improve their skills and professionalism in their work and
serve as benchmarks for more employees to learn from.In the process of production management employees' health is also a concern of the Vietnamese
subsidiary. It organized various sports activities for employees in 2021 such as shuttlecock
competition and soccer match. In order to appreciate and encourage employees' contribution to
the company warm greetings and gifts were also given to employees with 5 years of service;
furthermore after learning that the roads posed difficulties to employees' daily commute the
subsidiary and its labor union made timely funding for road renovation to ensure employees'
safety and convenience in their commute.In the meantime Vietnam still faced grim pandemic
conditions in 2021. Under this circumstance the
subsidiary continued to give top priority to protecting
the rights and interests of its employees. To protect the
safety of employees the subsidiary set up a Pandemic
Containment Command Center and formulated various
pandemic prevention measures and instructed
employees to comply with them. Confirmed employees were sent to hospitals for treatment
promptly and each confirmed employee received a condolence allowance from the labor union
in addition to his/her salary.
3.3. Career Development and Growth of Employees
As talent is the core competence of a company Goertek attaches great importance to the growth
and development of its employees. In 2021 the Company continued to carry out human
25resources transformation projects and established a special project for accelerated cultivation of
talents for transformation focusing on business needs cultivation of talents in each tier exerting
the driving forces of culture mechanism and policy and continuously improving the career
development channels for employees. Various learning training and improvement channels were
constructed for employees and a sound learning system for employees was set up to develop the
career development opportunities of employees. In 2021 the Company's investment in training
increased by 52% year-on-year. The HR Department works with all business departments to
carry out training programs for leaders new employees specialized talents technical talents
and front-line employees so as to help them keep learning and growing and better realize their
personal value and professional achievement. Through constant improvement of the business
training mechanism a pool of talent resources is established to supply a steady chain of talent
output for the Company according to business needs.In 2021 the Company continued to implement a comprehensive and multi-disciplinary talent
training strategy to fully inspire its organizational energy. The HR Headquarters is continuously
upgrading training programs by coordinating the work among platforms of each specialized line.As a result these specialized talent training programs have become increasingly well established.By continuously empowering specialized talents (via special training in finance and economics
quality lean management supply chain and HR) the business foundation is continuously
consolidated and the competence of each specialized list of talents is soundly improved.The Company has been continuously upgrading its new employee training system with new
employee training programs for campus recruitment (the "Goertek Wings" program and "Wings
2000" program) and for social recruitment (HUG training) so as to facilitate the rapid integration
of new employees improve their professional capabilities comprehensively and boost their
steady growth. In 2021 the Company focused on the retention and development of employees
in the Goertek Wings program in order to facilitate their adaptation to and integration into the
Company. Through the establishment of a Company-level project targeting employees in the
Goertek Wings program the HR department joins hands with business departments to manage
the entire process from precise recruitment training and development to compensation and
incentive and care and retention clarifying the career paths and various guarantee policies for
26the development of employees in the Goertek Wings program enhancing employees' trust in and
loyalty to the Company and propelling common growth of both employees and the Company.Meanwhile the HR department undertakes the senior-level employee training of the Company
and continues to strengthen the enforcement of senior-level employee standards and senior-level
employee monitoring. Through the G-Plan and M-series training programs the goals of
identifying and training senior-level employees with great potential enhancing and putting their
abilities into use and improving their ethics so as to continuously produce and competent
senior-level employees with good character for the Company.The key to the progress and development of a company lies in its talents. In order to strengthen
the Company's core competencies build a learning organization and refine the construction of a
talent pipeline the HR department took the lead in 2021 in collaboration with all business
groups to systematically upgrade the Company's training operations sort out lecturers courses
and resources and focus on improving lecturers' professionalism and enhancing their sense of
honor while emphasizing the quality of courses and setting course levels and standards. In 2021
a total of 545 lecturers were certified all of whom went through the TTT training to improve
27their professionalism and effectiveness of their lecturing. 404 courses were developed in 2021
17 of which were rated as excellent courses and 81 of which were company-level quality courses
developed based on business needs. At all levels of the Company talent cultivation is vigorously
promoted in support of the Company's strategy. The Company's senior management played a
leading role in offering lectures registering a total of 6923 lecturing hours 27.4 lecturing hours
per capita and an 87% increase in the frequency of lecturing. All employees receive training
with 45.8 hours of training per capita.To train primary-level managers and technical talents more effectively and promote the
sustainability of manufacturing manpower Goertek gave full play to its role as an innovative
entity in 2021 and carried out a series of cultivation and training activities related to
manufacturing manpower forming a unique mechanism for selecting nurturing employing and
retaining talents so that primary-level managers and technical talents can keep up with the
development of this industry.For the employed manufacturing manpower the Company continues to empower and optimize
the manufacturing manpower structure by opening up the promotion path for primary-level
managers adjusting the remuneration structure and conducting a review of the entire
manufacturing manpower. In 2021 the Company continued to train shift leaders and rate them
with stars. 1373 shift leaders participated in the training. Moreover instructors were appointed
in business units for the first time to take charge of the training of primary-level managers with
74 individuals having completed the training and 23 having passed the evaluation so far. To
further enhance the stability of primary-level managers while continuously improving their
capabilities the Company further optimized the promotion paths for these managers in 2021 by
upgrading the 5-level hierarchy to a 7-level hierarchy so that it is possible for primary-level
managers to be promoted to ministerial-level managers.As the manufacturing mode upgrades requirements for technical talents are getting increasingly
higher. In 2021 the Company continued to put effort into building a great team of technical
talents clarifying the positioning of craftsmen and improved the career path for them. 195
craftsmen passed the evaluation while 471 were trained under a. novel enterprise apprenticeship
system jointly carried out with universities. The Company conducted internal empowerment
28training for craftsmen training camps for inexperienced craftsmen and training camps for skill
development. Moreover a systematic review was conducted for the technical talents in the
Company who were divided into 11 groups based on their technical specializations with their
job posts and specific requirements clarified. Meanwhile the Company further benchmarked its
skill level settings against those adopted by other enterprises and continued to carry out
independent evaluation with a total of 2558 employees evaluated in 2021. This further
strengthened the efficiency of the occupational skill levels set for evaluating the Company's
technical talents.In 2021 the Company continued to improve the quality and quantity of training for preparatory
primary-level managers and technical talents with strengthened joint training of craftsmen class
between Goertek's Craftsman Training Center and various colleges and universities. 215
craftsmen/technicians were trained in 2021 84% of whom were qualified by skill recognition
receiving the same pay level as an average graduate with a bachelor's degree. The training has
been strengthened continuously to enhance front-line management ability. In 2021 507 new
front-line shift leaders were trained and 470 employed shift leaders received rotational training.The management ability of these front-line shift leaders was systematically enhanced through
theory learning and practicing. In 2021 the Company continued to explore the university-
enterprise cooperation mode. On the basis of the "1+1+1" craftsman/technician class model
Goertek built a modern industrial college many universities and conducted training for the first
batch of 112 undergraduates. Through the systematic training on manufacturing technology
process mold workflow quality and corporate culture students are able to master the
knowledge and capabilities required by enterprises while further deepening their understanding
of employment and career choice. The Company was jointly recognized by the National
29Development and Reform Commission and the Ministry of Education in June as one of the first
batch of state-level industry-education integration enterprises integrating production and
education; in December it was recognized by the Department of Industry and Information
Technology of Shandong Province as a public training base (demo category) for the new-
generation highly skilled personnel in information technology.In 2021 oriented toward employee growth the Vietnam subsidiary vigorously promoted the
talent localization training program with a focus on senior-level employees and employees in
the Goertek Wings program so as to orderly construct a localized talent pipeline.Despite the impact of the pandemic various training programs were carried out in an orderly
manner. In 2021 a new plan was made for the senior-level employee training system of the
Vietnamese subsidiary with upgraded internal and external resources regulated operation and
implementation and standardized processes. A total of five senior-level employee training
classes were set up covering 306 people including 231 Vietnamese nationals with an
accumulative 300 hours of lectures. As a strategic reserve of talents for the Company's future
rapid development an end-to-end management system for the Goertek Wings was established
in early 2021. For the Goertek Wings candidates of previous years a series of training and
employee care activities were carried out by coordinating the efforts of various business groups;
30and for the Goertek Wings candidates of the present year a comprehensively upgraded induction
training camp was held training 154 people. Through good management of the all-round entire-
process training a localized management ecology for the Goertek Wings initially took shape.In 2021 with continued adherence to the Company's strategic direction and focus on
business development needs the Goertek subsidiary in South China remained dedicated to the
training of talents in each tier and development of a learning organization. In particular the South
China subsidiary empowered its team through a variety of senior-level employee training and
front-line management improvement courses which enhanced the management ability of the
senior-level employee team and effectively stimulated their vitality. By optimizing the content
and operation form of HUG training courses new employees had better induction experience
and integrate faster. English language courses were developed to improve the English of the
business teams and thus enable them to serve clients more efficiently. The in-service growth
program for the Goertek Wings candidates was developed and implemented to facilitate the skill
improvement of fresh graduates while they work and to quickly make them feel a sense of value.The Learning Together Day (LTD) program organized weekly learning on specific topics. Its
rich content and flexible lectures won wide popularity among the employees of the South China
subsidiary and at the same time everyone in the organization was encouraged to pursue personal
development. As more people were engaged in learning people are more convinced by the
power of learning income growth. Through the project of "Gathering Teachers for Extensive
Education" internal lecturers of the South China subsidiary were selected and trained; this
project also became a booster for corporate culture inheritance of the Company and skill
improvement of the employees. In 2021 the South China subsidiary independently developed
and introduced 42 excellent courses organized 36 public courses at Company level and trained
3128 internal lecturers. The internal training covered 83.1% of senior-level employees; the number
of voluntary participants grew by 211%; the per capita offline learning hours grew by 750%; and
the average satisfaction of participants scored 4.91 (out of 5).
3.4. Employee Engagement and Communication
In order to more widely and timely receive the suggestions and opinions of employees and more
effectively solve their problems Goertek continued to strengthen the function of its Labor Union
in 2021 and set up a professional team to systematically manage issues such as employee care
employee rights protection assistance for those in need convenient facilities inclusive services
and cultural and sports activities. In July the Weifang Campus of the Company held the Fourth
Employees' Congress which was attended by the leaders including the Secretary Chief of the
High-tech Zone the Head of the HR department the chairmen of all functional departments and
business groups as well as employee representatives with a total of more than 200 participants.The Congress heard the reports on the work of the Labor Union the Funds Review Committee
human resources administration and work safety in recent years elected the members of the
Fourth Labor Union Committee the Chairman and the Vice Chairman of the Labor Union the
members and the Director of the Funds Review Committee and the members and the Director of
the Female Workers Committee and deliberated on the member composition of the Labor
Dispute Mediation Committee. Moreover 12 rules and regulations were deliberated and
approved by the Congress including the code of conduct for employees leave management and
the reward and punishment mechanism to continuously improve the capacity of employees'
democratic engagement and give full play to the Employees' Congress.
32The Labor Union has set up communication and feedback platforms such as the Labor Union
Service Hotline the Labor Union Email the "Goertek Staff Home" official WeChat account and
satisfaction surveys so as to hear the demands of employees and solve their pressing concerns
in a timely manner thus creating a harmonious labor relationship and forming a community of
shared destiny between employees and the Company. In 2021 the Labor Union received 2630
messages of feedback from employees through various channels such as WeChat email and
hotline with a 100% closure rate. Timely and effective assistance was provided to employees in
solving or responding to various problems they encountered so that employees could truly "turn
to the Labor Union whenever in need".In addition an internal supervisory organization has been established with standardized internal
complaint and appeal channels and handling mechanisms maintaining strict confidentiality and
protection measures for complainants and petitioners and prohibiting any form of retaliation.Employees can complain about any problems and the internal supervisory organization assists
employees in solving problems through such ways as visits investigations and employee talks.The year 2021 marks the 20th anniversary of Goertek. The employees jointly composed a theme
song for the 20th anniversary - "Together" with more than 300 employees contributing their
ideas. The youthful and vigorous sound covered every corner of the Company's departments and
campus and its vibrant music video has also swept across the employees' WeChat Moments.The theme song was also well received by platform users after being released on QQ Music
Netease Cloud Music and WeSing. At the same time the Company carried out multiple creative
activities for the 20th anniversary on the TikTok App with a total of more than 2 million views
on the topics receiving enthusiastic responses from employees. In the #Shining Goerteker#
activity employees actively uploaded self-choreographed videos with over 1000 employees
33participating in the shooting and interaction showing their passion for life and work; in the
#Singing Goertek# activity hundreds of employees participated in the hand-gesture dance and
danced to the theme song showing their best dance moves. A variety of activities such as WeChat
portrait customization exclusive blessing poster customization and creative group photo
challenge were launched on WeChat engaging employees in the bustlw of the Company's
celebration.In 2021 Goertek created its original workplace gymnastics as part of the Goertek Workplace
Fitness Initiative and called on all employees to spend five minutes every day on exercise. The
workplace gymnastics comprises six moves to help employees enhance their physical fitness
exercise their body and relax their muscles. The activity gave rise to a workout craze among
employees. More than 30 teams from various departments within Goertek were formed to
compete in the workplace gymnastics competition. Over 10000 people participated in voting
the best-performing team making workplace gymnastics a featured activity for physical fitness
within the Company.
34In 2021 the TV program "Goertek TV" was officially launched and broadcast in staff cafeterias
spaces in front of elevators and Goertek's intranet with six episodes already aired. Goertek TV
focuses on the latest news of the Company and the industry and activities of various departments.Employees can also send blessings to their colleagues by ordering songs which has been well
received by employees once it was launched. Many ordered songs for their colleagues. The
position of "Goertek TV" anchor is held by employees becoming an opportunity for them to
show their personal charisma. Currently there are already more than 20 TV anchors.In 2021 the South China subsidiary set up a jukebox program to enable employees to better
relax themselves and have more pleasant their break from work. 387 songs were ordered
throughout the year and employees' sense of engagement and sense of ownership within the
Company was strengthened. Birthday parties were held for employees monthly with exclusive
privileges for employees having birthdays. There are games Karaoke delicacies and cakes for
the celebration. In traditional festivals such as the Mid-Autumn Festival and the Lantern Festival
joyful events were prepared to make employees feel the care and love of the Goertek family and
to improve their sense of belonging and happiness.
35In addition to enrich the leisure life of employees and to keep a good balance between work and
leisure the South China subsidiary actively carried out various activities including movie
screening art performance dating activity for the single "GBA three-player basketball match
flash mob where employees give Chinese New Year blessing in dialects and various team
building activities.In 2021 the Vietnamese subsidiary continued to strengthen the functions of its Labor Union and
set up a professional team to systematically manage such affairs as employee care assistance for
those in need convenient services art and sports activities and medical services. Feedback
channels such as hotlines emails satisfaction surveys employee suggestion boxes and talks
were established by the Labor Union to fully and timely learn about the demands of employees
and address their demands. In 2021 the Union received 83 messages of feedback from
employees mainly related to cafeterias parking areas and union benefits through emails
hotlines employee suggestion boxes and face-to-face talks with a 100% close rate. Through
timely and effectively helping employees solve or answer various problems encountered in their
work and life the Union set up a bridge of communication with employees enabling them to
truly enjoy the benefits of "Turning to the Labor Union whenever in need". To make it more
convenient for employees to provide feedback more comprehensively the Vietnamese
36subsidiary opened an official WeChat account as a new feedback channel for employee
suggestion boxes in 2021 which was used actively by employees.
4. Occupational Health and Safety
The safety management of Goertek is mainly about aspects such as employees' occupational
health and safety environmental protection and fire safety. Since 2007 the Company has
successfully passed the certification of ISO14001 environmental management systems and
ISO45001 (certified OHSAS18001 by 2019) Occupational Health and Safety Management
Systems by DNV.GL for 15 consecutive years without any serious non-conformity. The
Company conducts internal audits on a rolling basis every year covering the entire business
process of all departments to continuously improve and optimize the EHS management. The
Company has passed the certification review of Level 2 Safety Production Standardization since
2015 by further strengthening its safety production management. The Safety Management
Committee has been set up with 5 secondary management panels totaling more than 40
registered safety engineers and about 10 registered fire engineers working together to ensure the
safety of all employees and the surrounding areas.
374.1. Hazard Identification and Control
The Company actively carries out graded risk control and hidden danger investigation and
management. The construction of the double prevention system has been taken as a key measure
to prevent and resolve major risks in production with its concept method and means being
continuously improved and perfected. Through targeted guidance and precise improvement
various types of supervision functions were coordinated to monitor the fulfillment of
responsibilities and comprehensively improve the prevention and control of production accidents
so as to boost the steady and sustainable production safety of the Company.The Company follows the principle of "moderate size easy classification independent functions
convenient management and clear scope". Based on the Hazard Identification and Risk
Management Process and the Operation Guideline for Hazard Identification and Risk
Evaluation we use the Operation Activity List and the Equipment and Facilities List to
investigate in all aspects and processes and reasonably classify the risks in the Company that
may lead to accidents including equipment and facilities (including common facilities shared
by various departments) operation behaviors environmental conditions and construction sites.The Job Hazard Analysis (JHA) + Evaluation Record and the Safety Checklist Analysis (SCL) +
Evaluation Record are respectively used for analysis and evaluation. According to the evaluation
results the level of risks is determined and the Risk Grading and Control List for Operation
Activities and Risk Grading and Control List for Equipment and Facilities are developed to
clarify the control measures and control levels. As required by the Safety Inspection Management
System periodic inspection and remediation of risks at sites are conducted to continuously
improve safety management by identifying and addressing problems.Inspection of chemicals Inspection of limited space
38Nighttime safety inspection Safety inspection of
environmental protection
facilities
4.2. Shaping a Sound Working Environment
4.2.1. Working Environment and Condition Guarantee
The Company provides employees with safe and sound working environment and conditions
with simultaneous planning and implementation of occupational disease prevention facilities and
safety facilities at the beginning of construction projects. Production equipment is equipped with
safety guards or interlocking devices and employees engaged in jobs with occupational hazards
are provided with free up-to-par personal protective equipment (PPE). Meanwhile medical kits
and first-aiders are available on site to provide emergency rescue for employees.In 2021 we focused on making improvements in terms of apartment safety and security facility
upgrades and environmental improvement to continuously better the employee accommodation
experience and raise their sense of belonging.
(1) Greater investment in safety
The Company has always attached great importance to the safety of accommodation with
continuous increase in its investment in apartment safety facilities and intelligence. In 2021 the
Company upgraded the common mesh for all apartment windows to diamond mesh for greater
safety and security as well as beauty and uniformity. It spent substantial sums replacing all
traditional mechanical door locks with intelligent ones to ensure safety at employees'
accommodation while making access more convenient for employees. By upgrading the
traditional electricity meters to intelligent ones the electricity use can be better monitored to
ensure the safety of employees' electricity use. While upgrading the hardware attention was also
39paid to strengthening safety management. The set-up of safety exits of the apartments complied
with laws and regulations and design specifications and daily inspections and spot checks were
strictly implemented to ensure that safety exits are available and the escape routes are kept clear.
(2) Upgraded facilities for service improvement
The Company is committed to continuously improving the living conditions of its employees.With great concern for employees' health direct-drinking water collection points were set up at
the apartment floors in 2021 with plans to further upgrade the water to mineral water of
recognized brand in 2022 so that employees could enjoy high-quality and safe drinking water.For historical reasons some of the apartment buildings were built long time ago with centralized
bathrooms at their initial planning and construction. After evaluation and validation the
Company launched an intelligent bath upgrade project to place bathrooms at all floors making
showering more convenient efficient and private for employees and thus solving their worries
over showering. Through practical actions the Company honors its service concept of "serving
with heart and soul and sharing a warm home" delivering quality services and joy to its
employees.
(3) Environmental beautification and cultural heritage
The Company has made great efforts to improve the accommodation environment of employees.By cooperating with professional property management companies the Company has increased
the investment in human and material resources and continuously improved the standard of
hygiene and cleanliness so as to create a neat and hygienic apartment environment. Designed
by the Company and participated by employees an apartment culture wall with Goertek's
characteristics has been created embellishing the accommodation environment while delighting
the employees. The concept of integrity pragmatism and win-win cooperation has been
embedded into the minds of all employees enhancing their sense of ownership so that Goertek's
culture takes root in the hearts of every employee.
4.2.2. Solid Promotion of Fire Safety Management
40The Company always adheres to the fire safety management principle of "prevention comes first
followed by defense and elimination". It conscientiously implements fire safety investigation
rectification publicity training and drill activities putting fire safety work as the top priority
while taking various measures to ensure effective implementation of fire safety work.
(1) Clearly define fire protection responsibilities
By improving the grid-like management of fire safety responsible persons and administrators
for fire safety are assigned at all levels so as to consolidate the organizational basis of fire safety
management. A graded risk control system is implemented and daily inspections of high-risk
areas are intensified. Specific persons are designated to take charge of key fire protection areas
with clearly defined control responsibilities. Voluntary fire brigades of each department are
established and improved and a monthly centralized training mechanism is implemented to
improve employees' capability of putting out fire in factories at the incipient stage.
(2) Step up the use of an IT-based fire fighting system
The Company has established an intelligent firefighting Internet-of-Things system to realize
24/7 real-time monitoring of firefighting water level water pressure and residual current of
power distribution cabinets. Flame video detectors are used for video monitoring of fire
information which can track the area of fire automatically and transmit the live videos to
management personnel so as to effectively control hidden fire hazards through high-tech means.
(3) Dutifully carry out fire evacuation drills
In 2021 the Company organized more than 190 fire evacuation drills to ensure that all employees
participate in at least one emergency evacuation drill every six months through which
employees could learn about fire emergency plans master evacuation and escape skills as well
as the use of fire-fighting equipment and improve their emergency response capabilities. In May
2021 the Free Trade Zone Management Committee organized fire managers of enterprises under
its jurisdiction to observe and learn from the Company's fire evacuation drills. This shows that
the Company drove the improvement of fire evacuation drills capabilities of neighboring
enterprises.
41(4) Provide proper fire safety education and training
By inviting experts from fire-fighting branches (brigades) to the Company to train safety
management personnel of each department making posters and billboards and showing fire
safety films the Company strictly implements the three-level safety training system and
continuously enhances employees' awareness of fire safety. The Company organized a fire safety
road show in November to promote fire safety knowledge. Besides the Company continued to
organize fire safety training for all employees focusing on explaining the Company's fire
management rules the use of fire-fighting equipment and fire escape skills so as to enhance
employees' awareness of fire safety.
4.2.3. Establishment of a Sound Corporate Emergency Rescue System
In order to ensure that the Company can quickly and effectively carry out on-site rescue and deal
with the accident effectively in the event of an emergency the Company improves emergency
response capability reduce casualties and property losses protects the safety of the Company
society and employees and safeguards lives and property. The Company has established and
improved its emergency rescue system and emergency response plan. By the extent of the
42damage the scope of impact the resources required for emergency disposal and the ability to
deal with emergencies the Company's emergency response can be divided into three levels:
Level 3 (grassroot team level) Level 2 (corporate level) and Level 1 (society level).With the principle of "people-oriented and safety first" and "prevention-based combined with
defense efforts" the Company formulated the Comprehensive Contingency Plans for Work
Safety Incidents in 2021 in accordance with the Production Safety Law of the People's Republic
of China Regulation on Emergency Responses to Work Safety Accidents Measures for the
Administration of Contingency Plans for Work Safety Incidents Guidelines for Enterprises to
Develop Emergency Response Plan for Work Place Accidents (GB/T29639-2020) and other laws
regulations and standards and was approved by the President of the Company for release.In addition to the corporate-level contingency plan the Company also prepared more than 20
dedicated contingency plans such as Fire Contingency Plan Chemical Leakage Contingency
Plan and Environmental Pollution Accident Contingency Plan for specific sites devices or
facilities according to different types of work safety accidents. In addition more than 10 on-site
handling plans were prepared including Fire Site Handling Plan Chemical Leakage Site
Handling Plan Electrocution Accident Site Handling Plan and Limited Space Accident Site
Handling Plan clarifying the description of accident risks emergency work responsibilities
emergency handling measures and precautions and prioritizing self-help and mutual help
information reporting and advance handling.A sound emergency response organization has been established with emergency response
groups of two levels namely the on-site emergency response group and the corporate emergency
response group. The on-site emergency response group is composed of field personnel from each
region. The specific composition is stated in the On-site Handling Plan of each region. The
corporate emergency response group is composed of the emergency leadership team emergency
management office and emergency response team. In the meantime the Emergency Address
Book has been prepared containing the list of members of each group and their contact
information so as to quickly get in contact during emergencies with group members.
434.3. Protection of Employee Safety and Health
4.3.1. Hazard Source Notification
According to the distribution of risk points the Company has posted risk point distribution maps
at the entrance or prominent position of each building/floor/workshop provided information on
the main risk points risk categories risk levels control measures and emergency measures
through risk point notification cards and organized training for employees to ensure that they
understand the basic situation of risk points and master preventive and emergency measures. For
workplaces and jobs that may lead to accidents alarm devices on-site emergency equipment
and facilities evacuation routes etc. are set up.
4.3.2. Safety and Health Training
Goertek always takes employees' personal safety as a top priority. In 2021 it organized a variety
of safety training and activities to enhance employees' safety awareness and create a safety-
oriented culture. The Company continued to promote the LOPA model management of
hazardous chemical storage areas and upgraded and optimized the WMS-HXP system to
achieve early warning management of chemical storage quantity and dynamic management of
storage types thus upgrading the safety management capability and efficiency. In order to
strengthen employees' safety awareness and enhance their safety knowledge and skills the
Company has been carrying out regular training on injury prevention and creating a strong
safety-oriented atmosphere. Over the years the Company has been continuously reinforcing the
building of a safety-oriented culture. With the theme of "Fulfilling Safety Duties and Promoting
Safe Development" in 2021 the Safety Production Month and continuous safety improvement
44activities were held. In addition commercial insurances such as group insurance for personal
accidents aviation accidents and business travel accidents were purchased for all employees to
protect their lives and properties.Work safety cartooning activity Emergency experience activity
In order to improve all employees' awareness of safety enhance their safety knowledge and skills
and create a strong safety-oriented culture the Company places emphasis on safety training and
education for all employees. Specifically such safety training includes regular training targeted
training targeted consultation and external training.For regular training the Company conducts monthly training themed around safety participated
by relevant personnel within the Company in addition to the three-level safety education and
various targeted training required by national laws and regulations. The themes carried out in
2021 included traffic safety holiday safety special power equipment safety occupational health
chemical safety environmental protection summer safety food safety production equipment
safety first aid knowledge fire safety and public security which improved the safety awareness
and knowledge of relevant personnel ensured 100% training coverage as required of personnel
whose duties were relevant to safety and health and achieved positive results.EHS comprehensive ability Examination on safety knowledge
enhancement training
45Moreover special attention has also been given to training of safety management and learning
of safety management rules for safety management personnel. In 2021 the Company organized
special training on safety management such as safety leadership training for middle and senior
managers EHS comprehensive ability enhancement training safety management personnel
rotating training hazard source identification theory and field practice compliance evaluation
theory and field practice and ISO14001 & ISO45001 knowledge training. In addition young
talents with great potential in safety management of the Company were identified and invited to
participate in the EHS 50 Professional Workshop in 2021 with elaborate professional +
comprehensive course plans to create a training system for EHS 50 trainees through integrating
external teaching resources targeted development of internal courses and learning forms of both
lectures and seminars. The various targeted training programs on safety management
participated by a total of over 1000 safety managers of the Company. Through theoretical
learning plus on-site practice the professional capability and competence of safety managers
were continuously improved to ensure the long-term and stable development of the Company's
safety management.Environmental factor
EHS internal reviewer training
identification training
4.3.3. Occupational Health Management
Through workplace occupational hazards testing and occupational health evaluation the
Company is able to identify posts with occupational hazards and regularly organize health
checkups for employees in such posts. Moreover various occupational health protection
measures are taken to minimize the risk of occupational diseases. In terms of occupational health
checkups the Company has cooperated with hospitals to conduct regular pre-job on-the-job and
46off-the-job medical checkups for employees in positions with exposure to occupational hazards.
Not a single case of occupational diseases has emerged in the Company so far.
4.4. COVID-19 Pandemic Prevention and Control
Despite the generally stable COVID-19 pandemic situation in 2021 Vietnam still faced a severe
condition with clusters of associated cases in some parts of the country and the transmission of
Delta and Omicron variants made the situation worse. Goertek made active arrangements all-
round deployment and rapid response and carried out comprehensive prevention and control
with corresponding measures implemented swiftly.
4.4.1. Organization of Emergency Drills for COVID-19
In order to carry out the COVID-19 prevention and control and standardize the emergency
response emergency drills of COVID-19 prevention and control were conducted under the
guidance of the government. The drill process was executed in an orderly manner according to
the standardized handling process to ensure safety and efficiency of the drill. The drill teams
made a proper division of duties performed their respective duties and cooperated with each
other smoothly. The drill significantly strengthened the Company's ability of emergency
handling and teamwork in preventing any clustered outbreak.
474.4.2. COVID-19 Vaccination
The COVID-19 pandemic is still spreading worldwide and will continue for a relatively long
time. Through vaccination more people can be immunized and a population immunity barrier
can be formed as early as possible in order to consolidate the hard-earned progress of pandemic
prevention and control. Vaccination against COVID-19 pandemic also stands a good chance of
preventing serious illnesses and deaths caused by COVID-19 infection.In 2021 the Company's Health Team for Pandemic Prevention contacted medics from various
hospitals and coordinated a total of 208 times of COVID-19 vaccination. The vaccination rate
for the first and second doses was 93.5% and that for the booster dose was 83%. In 2022 the
booster vaccination will continue to be promoted to achieve a vaccination rate of more than 90%
thus building up a stronger immunity barrier.The pandemic rapidly spread in Vietnam in 2021. In order to raise employees' awareness of
pandemic prevention the Vietnamese subsidiary organized activities to motivate all employees
to fight the pandemic together praising those working on pandemic prevention and awarded
those with outstanding contributions to pandemic prevention.
48By the end of 2021 the vaccination rate for both the first and second doses of COVID-19 among
Vietnamese subsidiary employees was 99% and that for the booster dose was 82%.
4.4.3. Emergency Response
During the Spring Festival the Company immediately contacted a third-party medical testing
company to formulate a nucleic acid testing plan for employees' return after the Spring Festival
holiday according to the number of people returning to Weifang as reported by each campus
with 20 nucleic acid testing points set up in each campus to ensure the smooth operation of the
Company after the festival.
494.4.4. Guaranteed meals and commuting
To avoid packed commuter public transportations at rush hours staggered work schedules are
arranged for employees with corresponding flexible shifts and online meetings recommended.All vehicles of the Company are disinfected twice before departure and after return and all key
areas such as the floor windows seats handrails and air-conditioning openings are fully
disinfected no corners left unattended.Goertek's staff cafeteria continues to maintain normalized pandemic prevention and control. By
improving its mechanisms and processes scientific disinfection and protection measures and
personnel management the cafeteria ensures zero COVID-19 case and safe meal provision.After each meal the staff cafeteria is ventilated and disinfected and employees must have their
body temperatures taken every day and receive regular nucleic acid testing and health screening;
the control over procurement of ingredients is strengthened and cold-chain ingredients
periodically go through nucleic acid testing; employees are encouraged to dine at staggered
intervals and panels are erected on tables to create individual dining spots so as to ensure the
safety of diners.
505. Adherence to Green Operation and Continuous Efficiency Improvement and Emission
Reduction
5.1. Environmental Management
Environmental protection has always been an integral part of Goertek's sustainability strategy.The Company's work in various aspects such as wastewater noise waste green office and
greenhouse gas assessment has achieved good results. In recognition of the great significance of
protecting the environment and creating a sustainable society Goertek has integrated
environmental protection into every aspect of its operations and throughout the life cycle of its
products. According to ISO14001:2015 the Company's environmental management system has
been established and applied to all stages of production including design development
manufacturing delivery and service of its products. Environmental factors are identified and
evaluated with respect to the life cycle of the products and corresponding control measures are
formulated for critical environmental factors. No environmental protection-related violations
and related penalties have occurred since the establishment of the Company.
5.2. Pollution Prevention and Control
5.2.1. Wastewater Management
The Company's products are mainly assembled with no industrial wastewater produced during
the production process. Domestic wastewater mainly comes from drainage of the office
bathrooms dormitories and staff cafeteria. In 2021 approximately 3939000 tons of water was
consumed in each campus of the Company in Weifang of which the living area of Photoelectric
Campus II was retrofitted with a water reuse system with an annual recycling water volume of
46000 tons used for cleaning and greening in the campus. The wastewater is general domestic
wastewater uniformly discharged to the municipal pipe network which complies with the
GB/T31962-2015 Wastewater Quality Standard for Discharge to Municipal Sewers; the
Vietnamese subsidiary complies with the Local National Sewage Discharge Standard
(QCVN40:2011/BTNMT Grade 1B (COD