拓邦股份:2021年度社会责任报告（英文版）

TOPBAND
Create an intelligent and bright future together
ESG
& Social Responsibility Report 2021
Shenzhen Topband Co. Ltd.The world's leading provider of intelligent control solutionsDear shareholders and all friends who care about Topband:
Topband a technology-based company is committed to providing customers with intelligent control solutions with the core technology
of "four electricity and one network" benefiting everyone.All employees made hard efforts in 2021 in the face of many challenges from the external environment. Customers and suppliers gave
great trust to us. Finally the Company exceeded the revenue target set at the beginning of the year and ensured the supply to
customers.Co-creation and sharing of values and common construction of sustainable ecology. For a long time Topband has adhered to the
core values of "accomplishing customers and achieving common development" and the concept of "equality health fairness and
justice" and has been working with industrial chain partners to build sustainable development of ecology achieving mutual benefit
and common growth. In 2021 the supply side faced severe difficulties i.e. the shortage of raw materials accompanied by the price
increase. We formulated the priority supply guarantee strategy quickly to ensure the delivery of customer orders by stocking in
advance and stock allocation at high prices and provided supplier empowerment training. Although we lost some profits we won the
trust and support of customers and suppliers. The more difficult it is the more responsibilities Topband should bear; Topband truly
regards customers and suppliers as a community with a shared future actively cooperating with partners sharing common values to
create a healthier ecological environment.Adhering to the value of technology and the development of the future market growth under innovation-driven strategy.Topband has always insisted on providing various intelligent solutions for sectors such as tools household appliances new energy and
industry based on the core technology of "electronic control motor battery power supply and Internet of Things platform ". In the past
decade the R&D investment of the Company accounted for about 7% of its operating revenues and technology and product
innovation boosted the performance growth of the Company continuously. In 2021 the innovative product platform of the Company
grew rapidly further consolidating its position in the intelligent control industry. The proportion of our independent and controllable
business increased steadily. Many innovative products emerged such as inverters thermostats cooking machines lawn mowers and
floor washers contributing a steady stream of power to the future development of the Company. Topband has truly entered the
business model of long-term development under innovation-driven strategy. There is no ceiling for the future development of the
Company. As long as we firmly grasp the technology and product innovation there will be no shortage of market which is especially
worthy of our pride.Constant evolution of the organization and simulation of vitality to improve organizational capacity. Topband is a
self-circulating and self-growing organic life body which can adapt to the changes of the external environment quickly and grow
continuously. In 2021 we reorganized the process and organization reduced the decision-making level and determined the mission and
vision of each organization making everyone clear about their respective responsibilities and perform their own duties. We adhered to
the employment philosophy of "respecting human nature identifying needs giving opportunities giving full play to value and
achieving common development" and promoted more than 40 BU (Business Unit) general managers from successful practice
allowing more outstanding talents with great ambition sense of mission and internal drive market insight and determination battle
control ability and courage to take up management positions. At the same time we strengthened the construction of cadre and key
professional teams integrated excellent resources and formed a reasonable talent structure to promote the value realization of
employees and achieve common development of the Company and individuals. Organizational dividends have been gradually
manifested with the improvement of organizational capacity which will become the greatest wealth of the Company.Looking forward to 2022 Topband is also welcoming new development opportunities with the development of society towards the
trend of "intelligence low carbonization regionalization and short chain". The Company formulated a blueprint for the next ten years
and strategies for each business unit for the next three years in 2021. To achieve our long-term goals we will seize the historical
opportunities of intelligence scenarios and green and low carbon systems to innovate the business model actively focus on
independent innovation and provide customers with intelligent solutions through insight into the pain spots of users scenarios and
industries while building demand insight resource integration and core platform capabilities. In 2022 we will seize business
opportunities and further optimize internal management.Seizing opportunities to lead industry growth. For mature business we should go to the front end to gain insight into market
opportunities deeply understand customer needs seize new opportunities constantly and strive for more orders to ensure the scale
advantage of the Company. For growing business we should improve our ability continuously and give full play to our existing
advantages to incubate and market innovative products constantly and achieve commercial success. At the same time we should
continue to expand new tracks and open up new growth points and finally achieve long-term strategic goals.Optimization of internal management and improvement of operational efficiency. With the gradual diversification of the
Company's business in order to adapt to the ever-changing business structure and promote the faster development of business we will
deepen the business model of independent operation clear responsibilities and effective supervision of different business under the
control of the Group and the support of the platform continue to consolidate the results of process reengineering focus on customer
satisfaction and the improvement of operational efficiency insist on shifting the business focus forward change the operation mode of
middleground and background functions actively and meanwhile promote the improvement of digitalization intelligent manufacturing
and integrated supply chain continuously to make different businesses grow healthily on the platform of the Company.Facing the future the fearless Topband staff will continue to uphold the customer-centered concept and create value for society under
the guidance of entrepreneurship. Let's go forward hand in hand contribute our strength to the intelligent and low-carbon society and
create an intelligent and bright future together.Chairman of Shenzhen Topband Co. Ltd.WuYongqiang
March 22 2022Description of the Report
This report was the second social responsibility report issued by Shenzhen Topband Co. Ltd. since its listing and it was released with
the company's Annual Report 2021.This report was reviewed and approved at the twenty-first meeting of the seventh session of the
board of directors of the company held on March 18 2022.Time range
From January 1 2021 to December 31 2021In order to enhance the comparability and completeness of the Report some contents
contain appropriate references to previous years.Body of the Reporting
The scope of this Report covers Topband and its holding subsidiaries and branches.Compilation basis
This report was prepared in accordance with the No. 1 Guidelines for the Self-supervision of Listed Companies on the Shenzhen Stock
Exchange - Standard Operations of Companies Listed on the Main Board the Disclosure Requirements for Social Responsibility
Reports of Listed Companies on the Shenzhen Stock Exchange the Guidance on Social Responsibility Report of Chinese Enterprises
issued by the Chinese Academy of Social Sciences the Global Sustainability Reporting Standards (GRI Standards) of the Global
Sustainable Development Standards Committee and in light of the actual situation of the company.Data source and reliability
The financial data in this Report are from the audited financial report of the Company and other data are from the data provided by the
relevant departments of the Company.Unless otherwise stated the currency amounts mentioned in this Report are denominated in
RMB.Release method
The Report is issued annually in both print and electronic formats.An electronic version can be downloaded from the Company's website http://www.topband-e.com/.The languages used in the Report
are Chinese and English. In case of any discrepancy between the two versions the Chinese version shall prevail.Discrepancy handling
This report has been prepared in Chinese and translated into English. Should there be any discrepancies or misunderstandings between
the two versions the Chinese version shall prevail.Contact Information
Contact Department: Topband Securities Investment Department
Address: Topband Industrial Park Keji Second Road Shiyan Subdistrict Baoan District Shenzhen
Tel: 0755-26957035Fax: 0755-26957440
Email: wenzh@topband.com.cnCompany profile
Responsible governance
- Set up an ESG management system and realize ESG action goals
Corporate Governance
Optimize corporate governance constantly to improve the efficiency of
enterprise management
Protection of Stakeholders' Rights and Interests
Environmental Protection and Sustainable Development
- Help the world's low-carbon development and build a friendly environment
with intelligent control technology
Prospect
- Practice the persistence and become a "white horse stock"
Suggestions and FeedbackInterpretation
Term Mean Definitions
The Company Topband Topband Shares Mean Shenzhen Topband Co. Ltd.yuan ten thousand yuan and 100 million yuan Mean Yuan 10000 yuan 100 million yuan
Huizhou Topband Mean Huizhou Topband Electrical Technology Co. Ltd.Topband Battery Mean Shenzhen Topband Battery Co. Ltd.Company profileI. Company information
Shenzhen Topband Co. Ltd. (Stock abbreviation: Topband; Stock code: 002139) was established in 1996. In the past 26 years since its
establishment it has focused on the intelligent control industry accumulated technical experience and product solutions around
intelligent control business and formed a comprehensive technology system of "four electrics and one network" (electronic controls
motors batteries power supplies and IoT) covering four industries of home appliances tools new energy and industry providing
intelligent control solutions for downstream machine manufacturers. Based on its good reputation and brand awareness in the
intelligent control industry it has become the world's leading provider of intelligent control solutions the leader of intelligent control
business in the industry of home appliances and tools and the innovator of lithium batteries and industry.By the end of 2021 Topband has 8445 employees occupying a total area of nearly 530000 square meters at home and abroad. The
revenue has increased from 468 million yuan in 2007 (listed) to 7.767 billion yuan in 2021 achieving a more than 16-fold growth.Topband has initially formed an international layout of "Based on China going International and close to customers". The R&D
headquarters is located in Shenzhen China and Huizhou is the company's main production base. In 2021 the company's Ningbo
factory was initially trial-produced. The Vietnam factory and the Indian factory have steadily expanded production the overseas
factories in Mexico and Romania have been established in an orderly manner and the international offices in North America and
Europe have been operating smoothly. The international layout not only satisfies our agile response to customers but also lays the
foundation for the company's growth in overseas markets.II. Mission and vision
Mission Innovate in intelligent control technology create
value for customers and benefit everyone
To be a global leading and honored provider of
Vision intelligent control technology
Company profileIII. Key performance indicators in 2021
Revenue: R&D investment:
7.767 billion yuan 0.56 billion yuan
Increase by 39.69% Increase by 41.02%
Total tax: Total assets:
0.193 billion yuan 9.607 billion yuan
Increase by 14.79% Increase by 41.81%
Net assets: Asset-liability ratio:
5.117 billion yuan 46.74%
Decrease by 1.46
Increase by 45.59%
PCT
Customer satisfaction: R & D personnel:
88% More than 1500
Increase by 17.62%
03
Company profileIV. Events in 2021
Business development events
(1) In March 2021 Topband made a stage pose at AWE and won two awards.
Topband (002139.SZ) made a grand appearance again at AWE2021 (Appliances & Electronics World Expo in 2021) one of the three
major home appliance exhibitions in the world. At the exhibition site Topband highlighted solutions for different scenarios for the
audience and attracted many customers with its innovative products and industry-leading technologies for visit and in-depth
understanding. The star exhibit the intelligent closestool control solution of Shenzhen Topband Co. Ltd. won two major industry
awards "AWE Intelligent Technology Award" and "Golden Nail Award" in China's home appliance industry chain.
(2) In April 2021 Topband passed the ISO/IEC 27001
information security management system certification.On April 13 Zhou Hanming the General Superintendent of SGS
Shenzhen Eastern Guangdong and Hainan issued ISO/IEC
27001 information security management system certificate to
Shenzhen Topband Co. Ltd. and Shenzhen Topband Software
Technology Co. Ltd.
04
Company profileIV. Events in 2021
(3) In April 2021 Topband cooperated with the Shanghai Cooperation Organization to build a new ecosystem for intelligent
development.The International Investment and Trade Expo of Shanghai Cooperation Organization in 2021 and the Local Economic and Trade
Cooperation Qingdao Forum of Shanghai Cooperation Organization were held at the Fangyuan Sports Center in Jiaozhou City from
April 26 to 28.Due to the good cooperative relationship Topband was also invited to attend the SCO Expo. At the exhibition site Wu
Yongqiang the Chairman of Topband was interviewed by reporters.As the world's leading provider of intelligent control solutions Topband on the basis of common interests signed a cooperation
agreement with the Local Economic and Trade Cooperation Demonstration Zone of Shanghai Cooperation Organization in February
2021 to clarify the basic rights and responsibilities of both parties and lay a good foundation for in-depth cooperation in the future.
Both parties would in accordance with the principles and directions determined in the agreement give full play to the strategic
synergy effect further expand the breadth and depth of cooperation establish a closer cooperative partnership and promote the
realization of higher levels of mutual benefit and win-win results. Both parties will make full use of their strategic synergies in
accordance with the principles and direction set forth in the agreement.WuYongqiang Chairman of Shenzhen Topband Co. Ltd.We signed an agreement of 500 million yuan
WuYongqiang Chairman of Shenzhen Topband Co. Ltd. WuYongqiang Chairman of Shenzhen Topband Co. Ltd.which will create about 2 billion sales revenue
(4) In May 2021 Topband established the European Office & North America Office consolidating the international layout.
In May 2021 Topband set up offices in Europe and North America further serving global customers and improving the level of
international operations. The European Office and the North American Office were used as the company's platform serving various
business units. Their main responsibilities include regional marketing research overseas platform construction local sales and
customer support and other work authorized by the company.Since its operation for more than half a year the two offices have established close ties with the company headquarters and various
business units and have made remarkable achievements in assisting each business unit in local market research local customer visits
acquisition of clues and business opportunities and order conversion. The year-end satisfaction survey shows that the overall
satisfaction rate of the two new offices exceeds 90% and the establishment of an international office will further boost the company's
international operation level.
05
Company profileIV. Events in 2021
(5) In September 2021
Topband based in Romania to take root in Europe
On September 15 2021 Topband Smart Europe Company
Limited registered in Bucharest the capital of Romania.Subsequently the company officially signed the plant rental
agreement on November 1 2021 with an area of more than
10000 square meters which signifies that Topband is further
rooted in the European market getting closer to customers and
markets accelerating the development of international markets
and providing European customers with more agile and
high-quality services.
(6) In November 2021
Topband became the first domestic company passing NLC (network
lighting control) 5.0 certification.On November 19 T-Smart Light commercial lighting system of
Topband also successfully passed the NLC 5.0 certification making
Topband the 13th certificated company in the world and the first
certificated company in China. This marks that Topband has reached an
industry-leading level in the field of intelligent commercial lighting and
can provide customers at home and abroad with high-quality intelligent
lighting services in all aspects and build a safer and more efficient
commercial lighting network system.
06
Company profileIV. Events in 2021
Events in capital market
In June 2021 Topband raised 1.037 billion yuan yuan
in non-public offerings
In June 2021 the company added 92105263 shares
through a non-public offering raising a net amount of
RMB 1.037 billion yuan. With the non-public offering
the recognition of the capital market was enhanced the
shareholder structure was optimized and capital strength
was increased and fueling the development of the
company's motor and the new energy business thus
promoting the healthy high-quality and sustainable
development of the company.In December 2021 Topband completed the stock
incentive plan of 2021
The company insists on long-term incentives in order to
stimulate the internal motivation of employees and to
jointly build a growth path with employees. In December
2021 the company completed the
33544320-restricted-stock incentive plan for 1224
employees.In 2021 Topband accelerated the layout of the new
energy industry
In December 2021 Shenzhen Topband Battery Co. Ltd.a wholly-owned subsidiary of Topband invested in
Nantong Topband Youneng Technology Co. Ltd. to
speed up the production capacity layout of the lithium
battery industry.
07
Company profileV. Product introduction
Topband's main products are intended to provide customized system solutions for the five major industries
of "home appliances intelligent tool control new energy industry and intelligent solutions".Intelligent control of home appliances
The Company provides brand customers in the home appliance industry with customized product concepts
design development manufacturing and delivery services including the master control power control
motor drive and control and display control of home appliances.Intelligent control of tools
The tool industry mainly includes electric tools garden tools and other professional tools. The Company
provides its customers with customized product concepts design development manufacturing and delivery
services. The business scope covers electronic controls motors and batteries and product forms include
controllers modules and complete machines.New energy application
The Company mainly provides battery cells battery management control battery packs charging cabinets
and other products and system solutions for the communication base station energy storage home energy
storage power batteries for two- and three-wheeled vehicles and other special vehicles mobile charging
power supply and the Internet of Things.Industrial intelligent control
In the industrial control industry the Company’s main business includes research and development
production sales of step and servo drives and control products with focus on special industrial intelligent
control solutions. The Company mainly provides controllers drivers and motors for downstream
automation equipment customers which are widely used in 3C electronics robotics medical equipment
semiconductor equipment textile machinery packaging machinery etc. We are committed to helping
automation equipment manufacturers improve equipment design performance reduce equipment
manufacturing costs and speed up the development of new equipment.Intelligent solutions
The intelligent solution is the integrated solution of "innovative products + AIOT platform + customizedservice” for the “clothing food housing and transportation” “industry catering hotel and park” and other
scenarios with the company's AloT (artificial intelligence Internet of Things) technology platform and
intelligent product innovation capabilities as the core.
08
Company profileVI. Strategic layout
Topband believes that the company not only creates value for customers and shareholders but also is a platform for employees and
other interested parties to create value together and shall strive to create a good social effect promote the intelligent and low-carbon
development of the world thus creating an intelligent and bright future. The company has infused the business philosophy into strategy
formulation and day-to-day business activities.Topband is convinced that the long-term mission of a company is to "make the world more intelligent and low-carbon". Green and
low-carbon has become a global consensus and goal. In order to cope with the challenges posed by climate and environmental changes
on survival and development of human beings every individual and organization should rethink the relationship among the human the
environment and society and accelerate the fostering of low-carbon and green development and lifestyle to promote the sustainable
development of human society. Topband believes that in this trend and development process faced by mankind the company will
continue to innovate with its own technology accumulation in the field of intelligent control technology so that intelligence and green
are developed in parallel and low-carbon and development are sustainable.Topband believes that scale development is still the main theme of the company at this stage. In the past year Topband still adhered to
the strategy driven by the four core competencies of "customer intimacy innovation-driven agile operation and organizational
evolution" practiced the core brand value of "agile innovation partner" and achieved the large-scale development. In various
subdivisions of the company's business Topband actively expanded the business with global comprehensive major customers and
fast-growing technological innovation customers regarded customers as the center to build an "iron triangle" customer service
organization and improved service coordination and response capabilities to work with customers to explore new business
boundaries and create new value.Driving development with innovation is one of the company's core strategies. Through continuous technological investment and
innovation the company continuously improves the efficiency reduces energy consumption and promotes the application of green
energy and delivers hundreds of millions of sets of intelligent control products every year thereby facilitating the green development
of society on a large scale. By strengthening the research and development of general technology and platform technology Topband
will form a core technology platform and key product platform in the fields of electronic control battery motor power supply and
intelligent Internet of Things and lay out medium- and long-term technical reserves to provide customers with thousands of
innovative advanced and green customized products and solutions each year help the whole society to reduce carbon emissions and
provide consumers with high-quality environmentally-friendly and durable products together with customers thereby reducing the
consumption of resources of the Earth and promoting the sustainable development.Topband vigorously builds a core platform combining the agile R & D intelligent manufacturing and agile delivery continuously
constructs and enhances system capabilities in R & D supply chain manufacturing and quality adheres to honest management abides
by business ethics and pays attention to employee rights and interests. Additionally the company combined with the continuous
deepening of digital transformation comprehensively uses the information networking and automation technologies to enhance the
intelligent operation capability thereby improving the future-oriented agile operation capability.When investing the future from the moment Topband firmly believes that technology creates value and a digital intelligent green and
low-carbon world is the inevitable trend of human society. Topband hopes to work together with global customers and industry
partners to practice sustainable development provide value to customers with intelligent control technology benefit everyone and
strive to become the world's leading and respected intelligent control solution provider.
09
Company profileVII. Corporate culture
Topband adhering to the employment concept of
"respecting for humanity understanding needs giving
opportunities exerting value and developing together"
has been committed to creating a healthy and humanisticenvironment of "fearless organization” allowing
everyone to work together share value and develop
together. A fearless organization refers to the
transparency candor openness freely speaking and
daring to tell the truth mutual trust and psychological
safety with which a group of personnel with lofty
aspirations a sense of mission and internal motivation
are gathered. The vitality of organization and members is
stimulated constantly through openness and innovation
to provide value to customers to benefit everyone to
keep the organization forever young and to create a
better life jointly.
10
Company profileVIII. Honor and award
Honorary recognition
No. Department Project name Company Awarded time
1 Federation of Shenzhen Industries Application for International Trusted Brand Topband January 2021
Federation of Shenzhen Industries Selection of Excellent Enterprises Fulfilling Topband January 2021
2
Social Responsibility
Department of Industry and Information The First Batch of Intelligent Manufacturing Topband March 2021
3
Technology of Guangdong Province Ecological Partners in Guangdong Province
Guangdong Administration for Market Recognition of Guangdong Enterprise of Topband June 2021
4
Regulation Observing Contract and Valuing Credit
5 Federation of Shenzhen Industries Shenzhen Industry Awards Topband September 2021
6 Shenzhen Customs AEO Certified Enterprise Certificate Topband October 2021
Guangdong Shenzhen (Nanshan) Trade Shenzhen Local Standard Pilot Topband October 2021
7
Secret Protection Base Demonstration Enterprise
Shenzhen Strategic Emerging Industry Top 50 Leading Enterprises in Strategic Topband November 2021
8
Association Emerging Industries
Guangdong Electronics and Information The 69th in the Top 100 with Topband December 2021
Industry Association Comprehensive Strength in Electronics
9
Information and Manufacturing Industry in
Guangdong Province
Ministry of Industry and Information Excellent Scenario of Intelligent Topband December 2021
10
Technology Manufacturing - Intelligent Warehousing
Guangdong Administration for Market Recognition of Guangdong Enterprise of Huizhou June 2021
11
Regulation Observing Contract and Valuing Credit Topband
Department of Science and Technology of Recognition of Guangdong Engineering Huizhou August 2021
12
Guangdong Province Technology Research Center Topband
Department of Science and Technology of Recognition of National High-tech Huizhou December 2021
13
Guangdong Province Enterprise Topband
Guangdong Manufacturers Association Top 500 Manufacturing Enterprises in Huizhou December 2021
14
Guangdong Province Topband
Lithium Battery Industry Intellectual Governing Unit of Lithium Battery Industry Huizhou December 2021
15 Property Alliance of Zhongkai High-tech Intellectual Property Alliance of Zhongkai Topband
Zone High-tech Zone
Department of Industry and Information Recognition of Specialized Refined Topband December 2021
16 Technology of Guangdong Province Characteristic and Novel Middle and Battery
Small-sized Enterprise
11
Company profileVIII. Honor and award
Recognition by Capital
Market
No. Department Project name Company Awarded time
Top 100 Chinese Listed Companies for
1 Yinsfinance.com Topband July 2021
High-Quality Development in 2021
Organized by Securities Times
co-organized by Caitong Securities e A-Share Company Social Responsibility
2 Topband September 2021
Company China Capital Market Research Award
Institute
Top 100 Digital Transformation Service
3 Tianfeng Securities Topband September 2021
Providers of Listed Companies
China Fund News co-hosted by
The Annual Company with the Highest
4 jhbshow.com the authoritative investor Topband December 2021
Investor Relations Value
relations platform
Excellent Team
No. Prize presentation unit Project name Awardee Awarded time
Shenzhen Strategic Emerging Industry
1 “Pioneer" - WuYongqiang Wu Yongqiang November 2021Association
Organized by Securities Times
co-organized by Caitong Securities e Outstanding Board Secretary of a Main
2 Wen Zhaohui September 2021
Company China Capital Market Research Board Listed Company
Institute
China Fund News co-hosted by
3 jhbshow.com the authoritative investor Elite Board Secretary of the Year Wen Zhaohui December 2021
relations platform
12
Company profileIX. School-enterprise cooperation
In 2021 Topband established school-enterprise cooperation with Guilin University of Electronic Technology Huizhou University and
Xianning School of Technology.Among them Topband established a teaching practice base with Huizhou University and Guilin University of Electronic Technology
set up Topband scholarships and supported various school activities and events to help the school cultivate comprehensive talents
with "morality intelligence physique aesthetics and labor education".Topband also carried out a joint school-running cooperation project with Xianning School of Technology including the co-construction
of the specialty of the Internet of Things technology application (Topband class) the co-construction of the Internet of Things
technology training exhibition room and the vocational skills and education improvement plan. In addition Topband provided
scholarships and bursaries every year for some outstanding students and poor students in cooperating classes.With the school-enterprise cooperation the multi-level multi-form and multi-field cooperation between the school and enterprise will
be further promoted creating a new opportunity to realize the organic combination and optimal allocation of school-enterprise
resources and to jointly cultivate compound talents meeting social development needs.
13
Company profileX. Party building
Topband promotes the cadre management system insists on the integration of corporate culture and the standardized construction of
party branches and the company's party committee actively participates in the comprehensive evaluation of cadres' ideology morality
and values and trains responsible party members into backbones and backbones into key party members. Meanwhile Topband
actively plays the leading role of party building and deeply integrates party building work with enterprise management. Currently
there are more than 200 square party building bases in Shenzhen and Huizhou including reading corners psychological counseling
rooms and party building leisure bars to provide a variety of cultural life experience for staff.Adhering to the creed of keeping the original intention and fulfilling the mission the Topband Party Committee and each branch will
continue to organize various party organization activities constantly enrich the spiritual and cultural life of party members and the
masses increase theoretical knowledge and practical skills promote the connection between the party and the masses gather strength
and enhance the party's ideals and beliefs work hard stimulate vitality and motivate all members to devote themselves to social
construction in the new era with more enthusiasm.
14
Company profileResponsible governance
- Set up an ESG management system and realize
ESG action goals
15I. Responsibility management
The company firmly adheres to the core values of "big ambition sense of mission and internal motivation; insists on the value of
technology respect and tolerance; continuous improvement and pursuit of excellence; serving customer; joint development" and
integrates it into the daily corporate culture and regard it as a rule of conduct for company leadership management level and all
employees when dealing with the market customers suppliers shareholders creditors and colleagues.Taking social responsibility work as a link the company guides and promotes various business units and functional departments to
strengthen the management of social responsibility and actively implement the practices of responsibility performance; each functional
department of the company jointly carries out relevant special work according to business divisions and compile and publish annual
social responsibility reports to continuously improve the ability to carry out responsibility and management level through compile
benchmarking and evaluation; and to establish an information disclosure system and build an effective communication platform by
releasing reports regularly and publishing the responsibility performance conditions with the WeChat official account from time to
time.II. Issues of concern
By referring to the Guidance on Social Responsibility Report of Chinese Enterprises and the Global Sustainability Reporting Standards
(GRI Standards) of the Global Sustainable Development Standards Committee and according to the essence of the company's
operation and development Topband carried out the evaluation of substantive issues for the first time. Based on the existing corporate
governance rights protection of interested parties environmental protection and sustainable development social responsibility
achievements and other sections and through the four steps of internal identification questionnaire exchange topic selection and
review the company identified the substantive concerns of interested parties and related to the operation of the company and make a
response in the report to the concerns of stakeholders gradually improving the ESG responsibility management system.Selection of substantive issues
(1) Internal identification: Identify alternative issues with reference to various report preparation guidelines standards and through
analysis of key issues in the same industry;
(2) Questionnaire exchange: Through the distribution of questionnaires customers suppliers employees and other interested parties
are invited to fill in the questionnaires and give feedback from the perspective of the impact on the company the economy
environment and society so as to assess substantive issues and develop an issue matrix;
(3) Topic selection: Sort the substantive issues according to the feedback results of the questionnaire and through internal management
discussions determine the results of the annual substantive issues and regard them as the disclosure points of this report;
(4) Review: Review the issue assessment process and suggestions from interested parties to identify room for improvement and
gradually set up a sophisticated ESG indicator system.Matrix of substantive issues
Continuous value
innovation Paying taxes according to law
Actively participating in social activities for
public good
Business performance Building efficient internal
improvement control process Three wastes treatment
Saving and management Promoting capacity building of
of raw materials suppliers Developing green energy
Continuous shareholder Paying close attention to the
returns honest and orderly supply chain Safety production management
Open and inclusive
employee Open and transparent Physical and psychological health of
communication information disclosure employees
environment
Resource recycling Enhancing customer satisfaction Improvement of employee professionalability
Importance to the economy environment and society Efficient and quality Safe shareholder assets Diversified employee development platformdelivery and equal opportunities
16
Importance to the company
Responsible governance - Set up an ESG management system and realize ESG action goalsIII. ESG responsibility integration
Topband regards ESG as an important starting point to improve the quality of the enterprise and to promote its deep integration with
the enterprise operation. In recent years the company has formulated five major strategies of "scale growth customer intimacy
innovation-driven agile operation and organizational evolution" and has continuously optimized the indicator system and has
improved the operation and social responsibility through collection analysis and reporting. With the indicator system the company has
completed an all-round assessment of its sustainable development capability further guiding the company to comprehensively examine
and identify the deficiencies of its sustainable development capability thus gradually establishing a sustainable development model.In 2021 the company continued to implement this work formulated the annual OKR and used it as a set of indicators to measure the
progress of the company's social responsibility work fully reflecting the specific performance in fulfilling social responsibility. On
December 31 2021 the company launched the "Third Topband Pioneer Award" selection activity to select excellent social
responsibility practices throughout the company and determine many excellent award-winning teams and individuals covering the
shareholders governments customers suppliers employees partners environment units and other interested parties.For a long time the company has been adhering to the core values of "serving customer and joint development" and the concept of
"equality integrity fairness and justice" and actively cooperating with partners sharing common values to create a healthier
ecological environment and achieve mutual benefit and growth. At present Topband has initially established a closed-loop
management mechanism for social responsibility practice planning execution and evaluation and the company will go further and
further on the road of performing social responsibilities of a corporate.IV. Responsibility communication mechanism
The company has established a diversified communication mechanism and has set up multiple channels to earnestly understand and
actively respond to the different demands of interested parties in the field of social responsibility so as to promote the establishment of
a stable good and sustainable relationship.
(1) Shareholders and investors: shareholders' meeting investor exchange meeting performance briefing investor telephone Easy
Interaction Platform of Shenzhen Stock Exchange (irm.cninfo.com) the company's WeChat official platform WeChat enterprise
account and investor relations mini-program;
(2) Staff: congress of workers and staff Yanxingzhe Journal open.work.weixin.qq.com and staff experience platform
(3) Customers suppliers government departments etc.: weekly meetings E-mails teleconferences internal and external training
industry associations and peer exchange meetings;
In addition the company has gradually improved the ESG report communication mechanism identified the core concerns of interested
parties and made a unified response.
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Responsible governance - Set up an ESG management system and realize ESG action goalsV. Response to responsibility
Stakeholders Expectations and demands on the company Response chapter
Shareholder Business performance improvement Standardizing governance and investor relations
Continuous shareholder returns management system
Safe shareholder assets
Open and transparent information disclosure
Customer Continuous value innovation Customer responsibility:
Saving and management of raw materials Understanding market opportunities thoroughly
Efficient and quality delivery deepening customer’s main industry and providing
Building efficient internal control process value services
Safety production management
Enhancing customer satisfaction
Supplier Promoting capacity building of suppliers Supply chain and partner responsibilities:
Paying close attention to the honest and orderly supply Creating a healthy supply chain ecology and realizing
chain the co-creation and sharing of the value
Employees Open and inclusive employee communication Stimulating the vitality of the organization enhancing
environment the internal motivation of employees and creating an
Improvement and development of employee organization with entrepreneurial spirit
professional ability;
building a diversified employee development platform
and providing equal opportunities
Physical and psychological health of employees
Government Paying taxes according to law Enhancing accountability
Actively participating in social activities for public
good
18
Responsible governance - Set up an ESG management system and realize ESG action goalsCorporate Governance
- Optimize corporate governance constantly to improve
the efficiency of enterprise management
19I. Standardized governance
The General Meeting of
Shareholders
Audit Committee
The Board of Supervisors
Salary and Assessment
Secretary of the Board of Committee
The Board of Directors
Directors
Strategy Committee
Nomination committee
General Manager Office
In strict accordance with the Company Law of the People's Republic of China the Securities Law the Code of Corporate Governance
for Listed Companies in China the Rules Governing the Listing of Shares on Shenzhen Stock Exchange and other laws and
regulations Topband has established a modern corporate governance structure with clear rights and liabilities and function of checks
and balances under which the general meeting of shareholders the board of directors the board of supervisors and the managers
exercise the decision-making power executive power supervision rights and perform the management responsibilities to ensure that
the company's shareholders and investors obtain company information in a timely manner and to protect the equal and legitimate
rights and interests of all interested parties.Decision-making mechanism - processed decision-making and efficient operation
(1) General meeting of stockholders
During the reporting period the company held a total of 4 general meetings of shareholders.The general meeting of shareholders strictly follows the relevant laws and regulations and the Articles of Association to perform the
convening and deliberation procedures and exercise voting rights on major issues such as the company's external investment
financing profit distribution and stock ownership incentive. During each general meeting of stockholders the company have held
on-site meetings allowing small and medium investors to communicate with each other closely on online and offline so as to ensure
that all shareholders enjoy equal status. Moreover during the deliberation process of each proposal the separate counting method is
used for matters affecting the interests of small and medium shareholders are counted separately fully guaranteeing the speaking rights
of these shareholders.
20
Corporate governance - Optimize corporate governance constantly to improve the efficiency of enterprise managementI. Standardized governance
(2) Board of directors
During the reporting period the company held a total of 13 board meetings.The board of directors consists of 9 directors including 3 independent directors and 1 female director. During the reporting period of
directors the company held a meeting to be responsible for the general meeting of shareholders convened the board of directors and
held the meeting in strict accordance with relevant regulations. Independent directors are independent from the actual controller
controlling shareholder and other related parties of the company and in their respective areas of expertise they independently make
judgments and express opinions on major issues concerned. The internal management of the company actively listens to the opinions
of external directors and independent directors to improve the deliberation procedures of the board of directors.Directors supervisors and senior executives actively participate in various training conducted by the stock exchange the China
Securities Regulatory Commission and the China Association for Public Companies deepen the responsibilities and obligations of
controlling shareholders and directors supervisors and senior executives enhance the company's internal governance management and
control requirements and respect the rights and interests of small and medium investors to facilitate their exercise of supervision
rights.Strategy Committee: Salary and Assessment Committee:
According to relevant laws and regulations and the Rules of Procedure of The Remuneration and Appraisal Committee is responsible for formulating
the Strategy Committee of the Board of Directors the Strategy remuneration plans or schemes for the Company’s directors and senior
Committee is responsible for studying and making recommendations on management personnel in accordance with relevant regulations and the Rules
the company's long-term development strategic planning technological of Procedure of the Remuneration and Appraisal Committee of the Board of
development direction major investment and financing plans major Directors reviewing the performance of duties of the company’s directors
capital operations asset management projects and other major issues that and senior management personnel and for conducting annual performance
affect the enterprise development and need to be approved by the Board appraisals making stock incentive plans and reward and punishment plans
of Directors. and supervising the implementation of the company's salary system.Audit Committee: Nomination committee:
In accordance with relevant laws and regulations and the Rules of The Nomination Committee in accordance with relevant regulations and the
Procedure of the Audit Committee of the Board of Directors the Audit Rules of Procedure of the Nomination Committee of the Board of Directors
Committee is responsible for continuously guiding the company's Audit is responsible for making recommendations to the Board of Directors on the
Department on the review of the internal control system and its size and composition of the Board according to the company's business
implementation critical accounting policies financial status and activities (including asset scale and equity structure) studying the election
operating conditions and management of the use and storage of raised standards and procedures for directors and general managers and making
funds of the company and its holding subsidiaries and for effectively recommendations to the Board of Directors to select qualified directors and
guiding and supervising the company's financial status and operating senior management candidates and for reviewing and giving advice for these
conditions. candidates.
(3) General Manager Office
The company has 5 senior managers including 1 woman to fully support and safeguard the rights and interests of women's career
development. The company has 1 General Manager who is responsible to the Board of Directors and presides over the company's
production operation management and investment implementation matters. In addition the company appoints the Deputy General
Manager Financial Director Human Resources Director etc. to assist the General Manager and assigns a Secretary of the Board
responsible for information disclosure investors relations etc.
(4) Business analysis meeting
In order to supervise and analyze the progress of the company's annual business goals and business plans the company regularly holds
business analysis meetings on a monthly/quarterly basis. The meeting is presided over by the General Manager. The sales R & D
procurement production finance human resources quality securities investment and other departments report the key issues
respectively during the meeting so as to help the management to control business risks and make efficient decisions.
21
Corporate governance - Optimize corporate governance constantly to improve the efficiency of enterprise managementI. Standardized governance
Supervision mechanism - transparent and effective supervision
The Board of Supervisors consists of 3 supervisors including 1 employee supervisors and 1 female supervisor. The Board of
Supervisors is responsible for the general meeting of shareholders supervising the compliance of the company's major events
financial status and the performance of directors and senior executives and promoting the company's standardized operation.Independent director team: 3 outside directors including 1 female independent director. The team makes independent judgments on
the company's daily operation and management and decision-making on major issues as the external expert objectively supervises the
decision-making level and safeguard the rights and interests of small and medium shareholders.Execution mechanism - coordination among the foreground middleground and background for efficient
empowerment
During the reporting period the company has carried out organizational reform and established a foreground BU organization which
guarantees the rapid insight into customer needs and discovery of potential market opportunities sets up the “iron triangle” capacity
improvement accountability system of AR SR and FR forming a closed loop of the opportunity taking the management of customer
needs and customer satisfaction and timely delivery and service providing customers with full-cycle and all-round problem solutions
thus improving the ability to directly serve customers and create values. With the coordination of BU organization and the "iron
triangle" the company's resource allocation is optimized the business side is efficiently empowered and the value of functional
departments is maximized.
22
Corporate governance - Optimize corporate governance constantly to improve the efficiency of enterprise managementII. Internal control
Anti-fraud and compliance
Topband always advocates the creation of a fair just and honest business environment strictly regulates business transactions adheres
to business ethics and attaches great importance to the construction of clean governance thereby building an incorruptible culture of
the enterprise. Under the guidance of the Audit Committee of the Board of Directors the Audit Department has carried out internal
audit work investigated various fraudulent incidents and smoothed the channels for complaints and reporting of violations.It has formulated and strictly implemented the Internal Audit System of the Company the Management Measures for Rewards for
Reporting of Malpractices and Corrupt Practices the Management System for the Declaration of Conflict of Interest between
Employees and the Company and the Employee Credit Management System etc. has established an anti-fraud WeChat official
account and has advocated anti-corruption cases. By formulating the Code of Business Conduct and Compliance of the Company it
has standardized basic behavioral requirements the behavior between the Company and employees the behavior between the
Company and its business partners quality health safety and environmental protection complaints and reports. Credit point deduction
warning demerit recording dismissal transferring to judicial organs if the circumstances are serious and other disciplinary actions
have taken for violations and the Company has also made public announcements and cautions.Protection of intellectual property rights
As more and more attention is paid to intellectual property in China enterprises hope to change the low-level competition environment
through technological innovation. The company has always attached great importance to technological innovation advocated the
craftsman spirit of excellence and adhered to the goal of "technology leadership achievement protection and benefit improvement"
encouraging engineers to apply for patents transform innovative solutions into patented technologies and to form intellectual property
rights. Additionally the company has protected innovative schemes enhancing competitiveness.In 2020 the company won the title of "High-value Patent Cultivation and Layout Center in Guangdong Province"; in 2021 on the
basis of the "target of improving patent power" proposed by the Chairman of the company patent protection and development work
were closely integrated with the company's strategic planning and business development patent mining and layout were carried out for
the key products and projects so as to strongly support the business with patents.The patent department of the company cooperated with the business department and regularly provided relevant training on patent
retrieval patent reading patent sharing etc. for engineers in each business department actively avoiding research and development
risks promoting technological innovation and improving R & D efficiency.In the future Topband will continue to adhere to the value of technology focus on patent layout quality improvement and operation
promotion to promote the application of patents in the R & D team and give full play to the value of patents so as to effectively
facilitate the business development.
23
Corporate governance - Optimize corporate governance constantly to improve the efficiency of enterprise managementII. Internal control
Protection of trade secret
While increasing investment in R & D and innovation the company also attaches great importance to the protection of technical and
business information. To this end the company has established a trade secret protection management system adopted various
management and protection measures to continuously strengthen the protection of trade secrets and safeguard the legitimate rights
and interests.From 2018 to 2020 after unremitting exploration the company
has gradually established a trade secret management system that
fits the company's business development including the trade
secret management organization trade secret management
operating mechanism and system documents and signifying that
the company's trade secret protection and management work is
gradually on the right track. On this basis in 2021 according to
the needs of business development the company continued to
improve the trade secret protection management system and to
implement the whole-process confidentiality management of
personnel from entry to resignation and formulated the response
and handling procedures for secret leaking incidents through the
coordination of operating departments legal department audit
department and information department. Additionally the
The First Monthly Trade Secret Activity company developed department norms according to the actual
situation of the department to regulate the daily confidentiality
behavior of employees and by holding monthly trade secret
activity activities conducted trade secret training for R & D
personnel and distributed cultural peripherals (trade secret
manuals canvas bags desk calendars etc.) to improve the
confidentiality awareness of employees and achieved remarkable
results.While building the internal trade secrets the company also boldly
"goes out" to communicate and cooperate with external
companies and government agencies. In one year the trade secret
team visited Chongqing Konka Shokz Zhejiang Xingxing
Industrial Park and other companies with experience in trade
secret protection for learning and exchanges invited Yang Jie the
Director of the Intellectual Property Procuratorial Department of
Nanshan District Procuratorate to the park to provide training
and guidance on trade secrets greatly enhancing the company's
top management's understanding of trade secrets. Moreover the
company actively cooperated with the administrative department
in the investigation and handling of relevant trade secret leakage
cases and participated in the formulation of Regulations on TradeSecret Management the local standard in Shenzhen. Honorary of “Shenzhen Local Standard Pilot DemonstrationIn October 2021 at the first trade secret protection bay area Enterprise” Awarded to Topband
summit held in Shenzhen Shenzhen Topband Co. Ltd. was listedon the “Guangdong Trade Secret Protection Events in 2020" andwas awarded with the honorary title of “Pilot DemonstrationEnterprise for Trade Secret Protection”.
24
Corporate governance - Optimize corporate governance constantly to improve the efficiency of enterprise managementII. Internal control
On November 26 2021 Gan Lin the Deputy Director of the
State Administration for Market Regulation led a team to
Shenzhen Nanshan Intellectual Property Protection Center to
investigate the protection of trade secrets in Shenzhen
Guangdong province and held discussions with government and
enterprise representatives. Topband participated in the symposium
as an invited enterprise and reported Topband's trade secret
protection work to the Deputy Director as a representative of the
enterprise introducing the company's experience and
achievements in the protection and management of trade secrets TopbandWas Reporting the Protection and Management of
and winning the high praise of the industry and relevant agencies. Trade Secrets
Network and Information Security
In terms of the overall information security management Topband Group adheres to the ISO/IEC27001:2013 system policy: "abiding
by laws and regulations customer-oriented integration of prevention and control and continuous improvement" fully combines the
actual business scenarios of the project to protect the safety of business operations and data security and implements the integratedsecurity concept of "pre-event interim and post-event risk closed-loop management” on the three levels of security technology
security management and security operation. Moreover the company develops the measures based on specific project conditions and
actual needs to establish a closed-loop security operation and maintenance system incorporating the evaluation security defense
emergency response continuous detection and response disposal and builds an integrated security assurance system that complies
with national laws and regulations and industry regulatory requirements.Figure 1 Overall Security System of Topband Group Figure 2 ISO27001 Certificate
25
Corporate governance - Optimize corporate governance constantly to improve the efficiency of enterprise managementII. Internal control
1. With a sophisticated organizational structure an
organizational model is formed in which an information
security team is led by the company's senior management
and daily work is undertaken by specific information
security functional departments.
2. In terms of external network protection the firewall is
used to build a set of Internet output protection system. In
the internal network the limited network isolation is
carried out in the server area according to the firewall. The
overall security protection system has rich and complete Figure 3 Organizational Structure of Company Information
functions with a certain integrity and comprehensiveness. Security
3. The company establishes a comprehensive security monitoring and response system and with log and traffic technology centrally
collects the logs of all devices (servers networks applications security devices etc.) for correlated analysis real-time monitoring and
rapid fault event location and traceability so as to improve security event processing and business assurance capabilities.
4. The company establishes an internal security detection system carries out the security vulnerability inspections at all stages of the
life cycle of all types of IT systems (application systems servers network equipment user terminals etc.) and sets up an internal
security vulnerability reporting and rectification mechanism to achieve the normal detection of security vulnerability.
5. The company has purchased services related to security
operation and through the introduction of expert experience and
capabilities has improved the effectiveness of security work and
ensured the standardized security operation. While introducing
external services the company has paid attention to improving
the security awareness and skills of employees in internal
network security-related positions so as to effectively facilitate
information security assurance.
6. In terms of security incident management the company has
established the advanced notification and early warning
mechanism for incidents and carried out regular information
security training covering most of the types of current security
incidents. Moreover the company has formulated emergency
plans and carried out emergency drills for various security Figure 4 Internal Early Warning of Information Security
incidents regularly. Incident in Topband
26
Corporate governance - Optimize corporate governance constantly to improve the efficiency of enterprise managementProtection of Stakeholders' Rights
and Interests
27I. Governmental responsibilities: keeping the original intention and enhancing accountability
Compliance management and paying taxes according to law
Topband actively fulfills its social responsibilities keeps making progress and pursues excellence to create value for the society and
strives to become a benchmark enterprise in the industry laying a solid foundation for the company's sustainable and healthy
development.In 2021 Topband actively adopted action plans in overseas markets in strict accordance with domestic and foreign investment
regulations and performed the registration procedures for outbound investment by the National Development and Reform Commission
Commerce Bureau Foreign Exchange Management and other departments where the company is located. Meanwhile the company set
up subsidiaries in strict accordance with overseas regulations and ensured their compliant operation.Adhering to the concept of honest operation and paying taxes in accordance with the law from 2019 to 2021 Shenzhen Topband Co.Ltd. its branches and subsidiaries had paid taxes of 114.0985 million yuan 167.8774 million yuan and 192.711 million yuan
respectively in accordance with the law making great contributions to economic development of the operating locations.Promoting employment
In order to enhance the company's international operation capability Topband actively implemented the localization and localized
management and operation deeply understood the differences in the culture and working atmosphere of the host country and the local
industry and integrated into the local social and cultural environment with a respectful and inclusive attitude; the company recruited
management personnel and technical personnel in the local area of the industry and reduced the risk of personnel loss to promote
local employment and stimulate local economic benefits.In 2021 under the favorable situation of the rapid growth of the company's business Topband has formulated a comprehensive and
effective personnel recruitment plan made every effort to promote social employment and achieved remarkable results. Additionally
Topband also provided customized training programs for new recruits to help them better integrate into the company and adapt to
work. The company would continue to promote the in-depth development of social employment work and to provide more and more
jobs for the society making due contributions to the construction of a harmonious society.Public health
Since the outbreak of the COVID-19 pandemic Topband has attached great importance to health and epidemic prevention work
actively cooperated with the government's epidemic prevention policy requirements and carried out the business in an orderly manner
when conditions permit. On the one hand the company has attached importance to epidemic prevention and control and on the other
hand it has ensured safe production. Under the severe global pandemic situation Topband has continuously achieved sales targets and
ensured product supply to customers and has accordingly won wide acclaim in the industry.Topband has carried out the domestic epidemic prevention and production in an orderly manner and has taken the overseas
anti-epidemic measures. In April 2021 the pandemic occurred in Vietnam. In order to fight the epidemic and ensure production
Topband quickly established an epidemic prevention team developed epidemic prevention measures in a timely manner and
implemented strict control over people and things; quickly purchased electronic thermometers electric spray disinfection stored masks
disinfectant water medical protective clothing medicines anti-epidemic materials etc. and assigned special personnel to disinfect
public areas every 2 hours. Vietnamese colleagues quickly mobilized and responded actively. Headquarters assisted in taking various
safeguard measures to overcome difficulties. Topband leadership made considerate arrangements for epidemic prevention and control
and actively maintained communication with government medical units to ensure timely delivery.
28
Protection of Stakeholders' Rights and InterestsI. Governmental responsibilities: keeping the original intention and enhancing accountability
In 2021 Topband (India) responded to the epidemic timely and properly learned the development trend of the epidemic in real time
and stabilized the psychological state of employees; actively arranged to regularly distribute epidemic prevention materials
encouraged employees to be vaccinated and conduct training and explanations on the spread of the COVID-19 and quickly organized
all employees for detection. By learning from mature epidemic prevention experience in China Topband has formulated scientific and
reasonable epidemic prevention policies to ensure safe work and steady production allowing the company to develop the business
stably.Production safety
Safety production management
Topband has passed the ISO45001 management system certification audit on April
6 2020.In the meanwhile Topband has formulated 36 rules and regulations related
to safe production in accordance with the Law of the People's Republic of China on
Work Safety Fire Control Law Law of the People's Republic of China on the
Prevention and Treatment of Occupational Diseases and other regulations concerned
and according to its own actual situation and has publicized them and supervised
their implementation through the enterprise OA platform.Topband has set up the Safety Production Committee (hereinafter referred to as the
Safety Committee) led by the Property Department and composed of the safety
production managers supervisors and employees of each department to carry out
and supervise the fulfillment of requirements of previous safety production work
and conduct the safety production inspection at least once a month learn from the
experience of other departments during the inspection so as to promote the
continuous improvement of the safety production work.Occupational health management
Topband has strictly abode by the Law of the People's Republic of China on the Prevention and Treatment of Occupational Diseases to
protect the occupational health of all employees and actively adopted new equipment new processes new materials etc. to minimize
or even eliminate occupational health hazards in the production process. Topband has taken measures in the following aspects every
year to protect the occupational health of employees. As a result no confirmed occupational disease has occurred in recent years.The company hires an external agency every year to test the harmful factors in the workplace conducts occupational hazard factor
testing on the workplaces that lead to occupational hazards every year and carries out a workplace occupational hazard factor control
and evaluation every three years to replace the non-conforming with new materials or use machine operations to replace manual
operations so as to protect the health of employees.In order to fully protect the legitimate rights and interests of employees the company will clearly explain the occupational hazards that
employees are exposed to at their jobs and the corresponding protective equipment provided in the contract. Meanwhile the company
will require employees to use labor protective equipment correctly in the workplace. The company has posted relevant warning signs
at the entrance of the workshop that causes occupational hazards informing the employees of the specific hazards in the workshop and
relevant protective measures. Besides the company has provided an occupational hazard notification card on the post to let employees
further understand the occupational hazard impact and protective measures.
29
Protection of Stakeholders' Rights and InterestsI. Governmental responsibilities: keeping the original intention and enhancing accountability
At present all employees who join Topband are required to undergo relevant physical examinations. If there are occupational health
hazards in the position they must participate in the corresponding occupational health examination as required by the company before
the entry. Employees who fail to pass the physical examination will not be hired or they will be transferred to positions without
occupational hazards with their consent. Employees who are involved in position-hazardous posts are arranged to participate in
on-the-job occupational health examinations every year. If any physical abnormality is found they will be immediately transferred
from their original positions. Employees who are involved in occupational hazard positions may take part in the occupational health
examination when they leave their jobs so as to ensure that each employee leaving Topband takes up a new job healthily.Construction of safety culture
In 2021 Topband carried out the construction of safety production standardization to further promote the development of the
company's safety production work. The company has set up a special safety publicity column to advertise various safety production
policies and guidelines publicize safety-related test results and ensure the employees' right to know. Throughout 2021 Topband had 0
work-related accidents 0 occupational diseases 0 fire accidents and no major safety production accidents.To cultivate emergency response capabilities of employees Topband regularly organizes various safety trainings and emergency drills
(fire evacuation chemical leakage etc.) every year. Moreover according to the needs of various departments Topband conducts
one-to-one training on the use of firefighting equipment to teach anyone wants to learn.
30
Protection of Stakeholders' Rights and InterestsI. Governmental responsibilities: keeping the original intention and enhancing accountability
Pay attention to shareholder returns and continue to pay cash dividends
The Company attaches great importance to a reasonable investment return to investors fosters a sense of return for shareholders while
the sustainable development of the Company is considered and keeps continuous and stable profit distribution policy and especially
pays attention to the maintenance of continuous and stable cash dividend policy. On the premise of ensuring full cash dividends and
reasonable scale of the Company's share capital and in light of the reasonable return to investors (especially minority shareholders) it
has formulated a long-term and relatively stable profit distribution method and a practical and reasonable dividend scheme to actively
repay shareholders.The Company's annual scheme for profit
distribution and capital reserve conversion to
share capital since its listing
Total cash Net profit attributable
Dividend
Year Profit distribution scheme/plan dividend (100 to the parent company
payout ratio
million yuan) (100 million yuan)
2021 RMB 0.5 per 10 shares 0.63 5.65 11.15%
2020 RMB 0.5 per 10 shares 0.56 5.34 14.23%
2019 RMB 0.5 per 10 shares 0.51 3.31 15.36%
2018 RMB 1.0 per 10 shares 1.01 2.22 45.63%
2017 RMB 1.0 and 5 additional shares per 10 shares 0.68 2.10 32.37%
2016 RMB 1.5 and 5 additional shares per 10 shares 0.68 1.44 47.14%
2015 RMB 1.5 and 5 additional shares per 10 shares 0.45 0.81 56.09%
2014 RMB 1.0 per 10 shares 0.24 0.65 37.17%
2013 RMB 1.0 per 10 shares 0.22 0.41 53.90%
2012 RMB 1.5 per 10 shares 0.33 0.33 98.02%
2011 RMB 2 one additional share and 2 bonus 0.34 0.70 48.31%
shares per 10 shares
2010--0.72-
2009 RMB 1.5 and 2 additional shares per 10 shares 0.21 0.45 46.73%
2008 RMB 1.5 and 4 additional shares per 10 shares 0.15 0.37 40.76%
2007 RMB 0.4 and 10 additional shares per 10 0.02 0.21 9.63%
shares
Total 6.03 19.06 28.33%
31
Protection of Stakeholders' Rights and InterestsII. Investor responsibilities: enhancing communication and delivering value
Repurchase date Repurchase number (shares) Repurchase amount (RMB)
2020358060020004351.75
20191023832055898336.38
201810200004101632.50
Total 14838920 80004320.63
Since the listing in 2007 the accumulative cash dividend (including 2021) was 603 million yuan.A total of 15 million shares were repurchased with a repurchase amount of 80 million yuan.Information disclosure
The Company makes information disclosure in strict accordance with the Stock Listing Rules of Shenzhen Stock Exchange the
Guidelines for the Standardized Operation of Listed Companies and the Administrative Measures for Information Disclosure. Through
the information disclosure media designated by the CSRC the Company truly accurately timely completely and fairly discloses its
periodic reports and temporary announcements so as to ensure that all investors can obtain the Company's information fairly. In
addition on the basis of ensuring the compliance of information disclosure voluntary information disclosure is moderately increased
to improve the referability and practicability of the Company's information disclosure.In 2021 the Company disclosed 4 periodic reports and 103 other announcements on the website of Shenzhen Stock Exchange and
www.cninfo.com.cn/new/index.Investor communication
The Company actively implements the requirements of the Notice of Shenzhen Securities Regulatory Bureau on the Special Work of
"Blue Sky Action" for Investor Protection (S.Z.J.F. [2017] No. 43) actively responds to the call of the special work of "blue sky
action" for investor protection effectively improves the quality of company information disclosure guides investors to establish the
concept of long-term investment and rational investment and practically conducts the protection of investors' legitimate rights and
interests.On July 23 2021 in order to implement the guidance of Shenzhen Office of the China Securities Regulatory Commission and China
Association for Public Companies on the establishment of several professional committees in the Shenzhen Association for Public
Companies the board secretary of Topband as a member of the Investor Relations Committee participated in the Establishment
Meeting of the Board Secretary Committee of Shenzhen Association for Public Companies the Chief Financial Officer Committee and
the Investor Relations Management Committee and the meeting of the Internal Control and Compliance Professional Committee.
32
Protection of Stakeholders' Rights and InterestsII. Investor responsibilities: enhancing communication and delivering value
In 2021 the Company increased the frequency of communication with the capital market. By sorting out the industry and company
business it is convenient for investors to have a clearer understanding of the intelligent control industry and company business and the
Company expanded the industry publicity and built a good brand image of the Company in the capital market. After joining the
subject matter of Shenzhen Stock Exchange Connect the Company increased the communication with foreign investors as well as the
attention and investment of foreign investors. During the year Topband held two regular report performance interpretation meetings
through the Internet and invited institutional investors. The IR team had participated in strategic meetings analyst meetings reverse
roadshows and other activities organized by institutions for many times and had conducted in-depth and extensive communication
with investors through the one-to-one one-to-many and publicity methods to fully introduce the operation and strategic planning of
Topband to the investors and had won unanimous praise from investors.In 2021 Topband became a bulk-holding stock of robot ETF funds with the market value of more than 27 billion hitting a record
high.Market Value and Stock Price of
Total market value (100 million yuan)
Topband (2007-2021) Share price (yuan)
Total market value
Share price
33
Protection of Stakeholders' Rights and InterestsIII. Customer responsibility: Understanding market opportunities thoroughly deepening
relations with the owner and providing value services
Facilitating continuous innovation of customers
Adhering to "technology creates value" Topband guaranteed and encouraged the creation of value for customers through technological
innovation from the top-level design of organization system process and culture.In terms of organization Topband reconstructed the organizational structure in 2021 and formed a two-tier R & D organizational
structure of "Company-BG". From the perspective of the company the research center was upgraded to the Central Research Institute
which is responsible for the construction of public platform public technology research central laboratory management breakthrough
on core and key technologies and reserve of future-oriented black technology to cumulative technical value by pooling the power of
the company and to maintain long-term technological competitiveness.In terms of system in addition to inheriting the mature innovation incentive system on patent innovation incentives and technological
breakthrough incentives Topband released the Decision on Encouraging Innovation and Subsidizing Innovation Input in 2021 to
encourage all units to be brave in exploration innovation and attempt. All units have benefited from this system and various internal
innovation projects have been established one after another which will provide technical value for the subsequent long-term
development of Topband and its customers.From the point of view of process 2021 became the year of process improvement. In 2021 Topband continued to promote the IPD
process in the company and focused on the optimization and improvement based on the company's situation emphasizing the
improvement of R & D efficiency and success rate. In 2021 driven by the IPD process the number of Topband’s 100000 + ODM
product platforms increased by 30%.From the perspective of culture in addition to the two-tier R & D organizational structure of "Company-BG" Topband attached great
importance to arousing the technical enthusiasm of all colleagues and unswervingly created a cultural atmosphere of "technology
creates value".Internally Topband relying on "Mo-tse College" has established a number of industry professional groups to actively support
technical exchanges and discussions in the groups. The company with the support of various marketing committees had held dozens
of trans-organization special technical exchanges in 2021 and under the framework of various marketing committees had also
organized technical insight and opportunity discussions in their respective fields.Externally on the one hand Topband continued to strengthen technical cooperation and academic exchanges with external scientific
research institutes and other professional institutions to promote industry-university-research cooperation and realize bilateral
interaction of the industrialization of scientific and technological achievements and the scientific research of special projects; on the
other hand the company actively participated in activities such as "Technology Day" of various leading customers planned or took
part in technical exchanges and cooperation with them jointly promoting the progress and development of the industry; thirdly
Topband actively joined in various industry associations and industry standardization organizations providing suggestions for the
development of the industry.In addition Topband a member of the National Technical
Committee on Standardization of Household Automatic
Controls of Standardization Administration of China (TC212)
and the Subcommittee on Inverted Controls of National
Technical Committee on Standardization of Household
Automatic Controls of Standardization Administration of China
(TC212/SC1) participated in the drafting and amendment of
more than 30 national standards industry standards and group
standards mainly including technical requirements safety
requirements and special requirements for household and similar
intelligent electric automatic controllers intelligent household
electrical appliance interconnection protocols and "International
Health Station" products.
34
Protection of Stakeholders' Rights and InterestsIII. Customer responsibility: Understanding market opportunities thoroughly deepening
relations with the owner and providing value services
R&D investment guarantee
As of December 31 2021 Topband has more than 1500 R & D personnel accounting for 45% of all employees with R & D
investment of about 560 million yuan an increase of 41.02% over last year. The company’s R & D investment accounted for more than
7% for five consecutive years. Topband currently has more than 3700 employees of which 60% have bachelor's and master's degrees.
Their overall average age is 32 years old forming a rather young team.In 2021 Topband had signed school-enterprise cooperation agreements with many colleges and universities laying the foundation for
the subsequent introduction of strategic talents. Topband has continued to build a talent management mechanism based on trust and
tolerance maximizing the potential of everyone in the company exerting the highest efficiency by assigning them jobs commensurate
with their abilities thus sharing value and realizing mutual development.Academic structure of R&D personnel
Educational background 2020 2021 Growth rate
Master and above 120 114 -5%
Undergraduate 883 1059 19.93%
Junior college and below 342 409 19.59%
Total 1345 1582 17.62%
Topband has increased the proportion of professional talents and enhanced the professional ability and innovation strength
continuously optimizing the talent structure and achieving results on the cultivation of innovative talents.During the reporting period Topband had applied for 167 invention patents 5 PCTs with high-value patents accounting for more than
10%. As of December 31 2021 the company had applied for a total of 2340 patents and successfully passed the acceptance of
"High-value Patent Cultivation Layout" project.Through years of patent accumulation Topband had been ahead of the peers in the number of controller patent applications further
consolidating the leading position in the technology and industry. During the reporting period focusing on the key products of strategic
planning the company had applied for patents of a total of 210 key products including 83 inventions 106 utility models and 21 for
appearances accounting for about 35.5% of the total number of applications during the period.Topband had successively applied patented technologies to market products and by relying on R & D and technical advantages
obtained many orders providing customers with zero-risk technologies and products and gaining their trust and recognition.
35
Protection of Stakeholders' Rights and InterestsIII. Customer responsibility: Understanding market opportunities thoroughly deepening
relations with the owner and providing value services
Satisfying customer demandAdhering to the core value concept of "agility innovation and partnership” and the principle of "customer-centered" Topband
provided customers with high-quality services and created value for them.By insisting on the strategy of leading customers the company provided diversified and customized customer services for major
customers strategic customers scientific and technological innovation customers and other leading customers to meet their different
needs and focus on their concerns so as to achieve business success in the process of creating value for them.Topband made 2021 the year of organizational change. In order to providing customers with better services Topband has carried out a
drastic reform on the organizational structure. The core of the organizational structure reform was that the foreground organization was
closer to customers focusing on the principle of "customer-centric" and 40+ CBUs emerged at the right moment.As the foreground organization that provides fast and high-quality services to customers each CBU focused on one or a group of
customers configured AR SR FR and necessary R & D resources necessary to serve customers and achieve rapid response forming
the most simplified small foreground closer to customers with flexible response capabilities gaining insight into customer needs
understanding their critical problems providing solutions accordingly and solving after-sales problems. In order to cooperate with the
operation of the foreground CBU the company integrated middleground resources on a large scale in 2021 to incorporate R & D
supply chain manufacturing and other aspects so as to provide sufficient capacity support for foreground customer services.Meanwhile the company had optimized the connection of foreground and middleground processes in practice achieving the
coordination and unity of foreground and background services for customers.In addition to the customer-oriented organization Topband had also taken efforts to improve the delivery efficiency and digitalization
level in 2021.In 2021 Topband launched a special project for intelligent manufacturing and digital factories which was applied in new
or planned bases (such as Ningbo Base Huizhou Phase-II Base Vietnam Phase-II Base Mexico Base and Romania Base) striving to
significantly improve the intelligent level of the factory and the digital capability lay the foundation for the improvement of
endogenous strength and the improvement of customer service level in a favorable fast and efficient manner.In 2021 Topband continued to deepen the customer intimacy strategy enhance internal strengths improve weak links promote
efficiency and raise quality in terms of the technology cost quality delivery etc. so as to provide customers with value services in an
all-round way.In 2021 Topband continued to implement the "Customer Satisfaction Survey" which was the 9th time for the company to review the
effectiveness of customer service process and strategies from an external perspective so as to keep abreast of the attitude to whole
process and all respects of customer service and suggestions from the customer in order to improve the service and the efficiency of
value creation and optimize the service level. The satisfaction survey in 2021 (end) covered Topband's core customer base the sales of
recycled customers accounted for 83.5% and the recycling rate of target customers reached 96%. As of 2021 the overall customer
satisfaction with Topband had increased for four successive years.With successive customer satisfaction surveys over the years a large amount of historical data had been accumulated for customer
service improvement and the direction for continuous service improvement had been determined through the customer value feedback.Historical data showed that Topband had been continuously improving the customer service and customers' overall satisfaction with
the company and various elements had been constantly increasing.
36
Protection of Stakeholders' Rights and InterestsIII. Customer responsibility: Understanding market opportunities thoroughly deepening
relations with the owner and providing value services
Strictly controlling product quality
(1) Quality control of central laboratory
Quality is the lifeline of products and is also one of the important prerequisites to achieve intelligent life. Topband is promoting the
establishment of a "zero defect" quality system adhering to the quality control of continuous lean improvement and providing
customers with better product quality through continuous lean management.Topband practices the quality system for lean improvement in procurement research and development design trial production mass
production after-sales service and other links and has established various professional laboratories to safeguard the rapid flexible
efficient and collaborative research and development.Topband Central Laboratory has passed the national laboratory certification (CNAS certification) DEKRA CTF laboratory
certification TUV rheinland witness laboratory certification UL-WTDP laboratory certification providing customers and partners
with EMC/EMI testing component certification testing product reliability testing/life testing production compliance testing/EMC
testing environmental protection standard testing harmful material testing failure analysis testing etc. In addition to the central
laboratory all kinds of professional laboratories such as the gas laboratory the kitchen appliance laboratory the engineering
laboratory the battery laboratory the intelligent toilet laboratory the ice washing laboratory and the electric laboratory can conduct
professional product testing in accordance with UL CE VDE TUV and GS certification requirements.
(2) Training series on Japanese quality concept
In order to promote the dissemination of Japanese quality concepts and culture in Topband strengthen employees’ attention to quality
and comprehensively improve the quality control capabilities the company specially invited Kiyoaki Kanuma the Guality Director to
teach a series of training courses on Japanese quality concepts in the second half of 2021.The training courses included a total of five
offline lectures with more than 150 participants from Shenzhen Huizhou Hangzhou and Ningbo. At the same time more than 200
colleagues learned them online. With the lecturer's rich case sharing and simple explanation the Japanese quality concept had been
successfully introduced into the company team.Double-R Ability Improvement Training Camp
37
Protection of Stakeholders' Rights and InterestsIII. Customer responsibility: Understanding market opportunities thoroughly deepening
relations with the owner and providing value services
Guaranteeing stable delivery
In 2021 the international electronic components market was surging and global customers and industry partners were facing severe
challenges of electronic components and other supply chain shortages. Ensuring stable delivery accordingly had become one of the
core measures to create value for customers in 2021.In 2021 Topband set up the first-rate special project - "Supply Chain Guarantee Project" to jointly deal with supply chain challenges
by gathering the company's best resources and taking measures in all aspects and fields and strove to improve the delivery completion
rate in difficult environments creating value for customers as a partner.On the one hand Topband studied and judged the global supply chain situation in advance from a strategic perspective took actions
decisively under heavy pressure and adopted methods such as early price locking and prepayment to finalize key materials in advance
for customers and to ensure subsequent delivery; on the other hand the company gave R & D advantages into full play vigorously
promoted the domestic replacement of core components and ensured quality and delivery on the basis of years of technology
accumulation providing Topband and Chinese solutions for customers to seize a wider market. In addition Topband also strengthened
cooperation with suppliers and actively supported the development of key core suppliers adhered to the principle of win-win in the
face of challenges to ensure the stable development of the industry. The special team took multiple measures and implemented precise
policies and made significant contributions to ensuring the supply and the efficiency and guaranteeing customer value under
extremely difficult circumstances and had won unanimous praise from many target customers.While improving the delivery level internally Topband also mobilized all relevant
departments to actively strive for convenient external delivery measures. In recent
years Topband has organized various related departments including the finance
human resources process and information center property management
department audit department finance department supply chain center R & D
center quality center etc. to fully participate in the AEO advanced certificationand audit by relevant customs departments in the aspects of “internal controlfinancial condition compliance with laws and trade safety” and to
comprehensively improve the export specialization level and customs clearance
convenience of the company.On the basis that Huizhou Topband passed the "AEO Advanced Certification" in
2020 Shenzhen Topband Co. Ltd. also passed the certification in 2021 and
obtained the gold-lettered signboard of the AEO advanced certification from the
customs department. After passing AEO certification a "VIP pass" for global
trade Topband's goods exported to foreign countries would be allowed to enter the
"VIP channel" in other words the priority was given to customs clearance and a
lower customs inspection rate was allowed therefore high-quality customs
clearance was guaranteed for customer delivery. In 2021 under the circumstance
of soaring orders and tension supply of raw materials Topband passed AEO
advanced certification saving the company a lot of customs clearance time (the
efficiency of customs clearance increased by 80% during the pandemic) and
avoiding the loss of nearly 10 million yuan due to the suspension of the line thus
greatly improving the delivery completion rate and the customer satisfaction.
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Protection of Stakeholders' Rights and InterestsIV. Responsibilities of supply chain and partner: creating a healthy supply chain ecology and
value co-creation and value sharing
Building a "Category Iron Triangle +" supply chain expert team to improve supply chain management
capabilities
Following the successful implementation of the core customer service team "Iron Triangle" in order to improve supplier management
capabilities Topband has established a supply chain expert team of "Category Iron Triangle +" covering the group category
procurement group quality and group device engineering and group delivery management. Through the effective implementation of
the expert team of "Category Iron Triangle +" the company gained insight into studied customer needs and allocated supplier
resources in a forward-looking manner selected and evaluated proper suppliers creating a fair and just supply chain environment and
contributing to the sustainable development of the company.Reform of supply chain management and company development fueled by coordination of production and
sales
The company has successfully built the production and coordination planning (S&OP) system and through forward-looking planning
in the two markets of customers and suppliers achieved optimal allocation and balance of resources. The coordination of production
and sales served the company's business strategy. By identifying various opportunities and risk points the company could predict the
demand trend in the next 18 months coordinate and optimize resource allocation through trans-department forward-looking strategies
so as to achieve business goals and enhance competitiveness.Digital tool - improving efficiency with EDI
With the help of the digital tool EDI (electronic data interchange) system Topband built the end-to-end collaboration capability
between the customer and the company by connecting the customer's ERP system with Topband's SAP system and realized the agile
supply chain. Through the EDI docking between Topband and strategic customers the 80% coordination timeliness has been
accelerated from 72 hours to 2 hours for response and the remaining 20% coordination timeliness has been shortened from 72 hours to
48 hours greatly improving the customer's delivery experience.
Topband data
Customer
transformation
End-to-end link from demand to supply
Delivery
Customer response Main plan
39
Protection of Stakeholders' Rights and InterestsIV. Responsibilities of supply chain and partner: creating a healthy supply chain ecology and
value co-creation and value sharing
Sharing long-term interests with suppliers and building a harmonious ecosystem
With the continuous impact of the COVID-19 pandemic in 2021 in the context of the continuous increase in the price of bulk raw
materials the shortage of chips and the blockage of international logistics Topband has been working with customers and suppliers to
meet various challenges in the supply chain. As a responsible enterprise Topband in line with the principle of long-term benefit
sharing with suppliers and a "customer-centric" culture sacrificed short-term interests to ensure material supply and achieve safe
delivery to customers. In the market situation that semiconductors were extremely scarce in 2021 the company increased the delivery
of key components such as IC and MOS against the trend.Promoting capacity building of suppliers and setting up a strategic sharing platform
The demand for intelligent control is growing rapidly around the world. Topband and its supplier partners have developed and grown
together with mutual benefit mutual trust and mutual assistance for many years. With supply turbulence becoming the new normal the
supply chain delivery capabilities have become the core competitiveness of enterprises. The improvement of these capabilities is
inseparable from the participation and joint construction of customers and suppliers. Therefore Topband University has joined hands
with the company to integrate the supply chain center and quality center and systematically empowered suppliers from five major
fields including the supply chain quality management HR and EAP hoping to achieve common growth help Topband and the
supplier build a win-win ecosystem and enhance supplier stickiness and strategic cooperation so as to ensure customer satisfaction
and create value for customers.Special guidance on supplier quality and delivery system to improve the overall level of the supply chain
In order to assist suppliers to improve their ability continuously in the integrated supply chain Topband organized the category
procurement personnel quality manager and delivery manager to provide special guidance on quality improvement and delivery
capabilities for several plastic PCB and packing material suppliers to assist suppliers in rectifying their system procurement
management planning management warehousing management production management lean management and other aspects and
help them to improve their overall operational capabilities so as to enhance the overall level of Topband supply chain and improve
customer satisfaction.
40
Protection of Stakeholders' Rights and InterestsV. Employee responsibilities: stimulating the vitality of the organization enhancing the
internal motivation of employees and creating an organization with entrepreneurial spirit
Staff development
Tutorial system
Eyas training camp Internal and external Tailored trainingELN learning and growth
Collective training trainingexchange meeting
Field practice Project implementationProject participation
Daily weekly and Annual seminar
monthly summary
Entry for one month Entry for one year Entry for two to Entry for more than
three years three years
In 2021 the Talent Development Department organized a total of 610 internal sharing sessions at the company level totaling 960
hours and organized and developed 109 courseware totaling 227 hours. The Department completed more than 300 annual training
plans at the department level covering personnel in multiple positions from Shenzhen Huizhou Yuecheng Hangzhou and other
places.In 2021 the company granted academic education scholarships to 35 people with a total bonus of 58000 yuan. In 2021 137 people
passed the external training and assessment process.The Company has established a talent training system combining professional competence and leadership including routine training
and professional module training. The Company develops different training courses for new employees R&D purchasing sales and
middle and senior management personnel by stages and implements annual training plans from the perspective of corporate culture
professional skills management improvement professional quality and mental health. Through the combination of internal and
external training excellent human resources support is provided for the sustainable development of the Company.In 2021 the talent development department of the Company and other relevant departments carried out a series of training. In order to
help new employees better adapt to the new work environment and operating posts understand relevant systems of the Company and
integrate themselves into the enterprise culture the human resource center of the Company has specially arranged a systemic training
plan for "Topband New Employee Training" and the training covers the company profile welfare corporate culture information
system finance and intellectual property rights legal basis ISC core ideas and professional mental health etc."Topband Newcomer
Training" has become a systematic newcomer training plan of the Company. In 2021 the Company held 14 sessions of new employee
training and 94 sessions of employee training in Shenzhen and Huizhou.In addition to SAP system training and TC system training the Company will also hold various professional training for different
positions from time to time including financial legal patent customs procurement and supply chain training sales training R&D
training manufacturing and quality training as well as subject exchange and sharing of various professional modules and technologies.The Company's training topics in 2021 covered R&D modules manufacturing and quality modularization power IC technology
trademarks customs knowledge PCB design specifications prevention and response of workplace-related psychological problems
project management supply chain strategy and plan change supplier negotiation and other topics. To meet employees’ needs of
self-competence improvement and make full use of the Company's internal wisdom the Company invited internal lecturers for
development according to the needs of students during the reporting period including skills such as PPT Production management such
as the Improvement of Team Cohesion mental health such as Mental Health Sandplay Experience Flower Arrangement Experience
Learning Photography and other interest courses which won unanimous praise within the Company. The Company will also seek for
external high-quality training and communication opportunities actively to improve the professional ability of employees effectively.In 2021 external communication topics of the Company covered innovative methodology (TRIZ) electromagnetic compatibility
(EMC) design and test case analysis electronic product reliability and DOE test design etc.
41
Protection of Stakeholders' Rights and InterestsV. Employee responsibilities: stimulating the vitality of the organization enhancing the
internal motivation of employees and creating an organization with entrepreneurial spirit
In terms of the training of leadership promotion the Company designed and implemented training camps for management ability and
leadership promotion at all levels in 2021 realizing the full coverage of training of management cadres at all levels from grass-roots
reserve cadres grass-roots team leaders to middle-level supervisors and managers and then to managers of BUs of the Company with
an aim to improve the comprehensive ability of its management and provide talent guarantee for its strategic implementation.During the reporting period Topband adhered to the concept of mutual benefit mutual trust mutual assistance and common
development with its supplier partners over the years and started from five major areas including supply chain quality management
HR and EAP and set up a supplier communication platform initially which was committed to the common growth of the Company
and suppliers.The company always pays more attention to the training plan. In order to improve the pertinence of training and enhance the
professional ability of personnel in all departments of the Company the module heads of all the departments of the Company and the
talent development department of the human resources center of the Company have jointly formulated the 2022 annual training plan.In order to improve the internal implementation ability of each department the module heads of all departments and the corresponding
lecturers ensure that the training plan will be carried out in an effective and orderly manner and the talent development department of
the human resources center will supervise and manage the implementation. The training plan for 2022 covers topics such as
management professional technical theory and practice negotiation customer development and management. In terms of course
design teaching method training system instructor team and other resources the Company has effectively guaranteed the
opportunities for employees to learn and grow safeguarding the career development of employees.Employee care
Topband has a sophisticated employee welfare system to reduce employees' worries and carries out TOP cultural activities with
interesting content and diverse forms according to their hobbies to enrich employees' lives. Meanwhile the company sets up EAP
employee mental health consulting agency to communicate with employees adjust the discomfort emotions in a timely manner and
avoid the spread of negative emotions.Entry Relaxing Holiday Housing
Entry gift/exclusive shuttle Dining room/tea room/gym/dance Statutory holidays/holiday Housing provident
bus/training and studio/cultural and sports gifts/birthday gifts fund/interest-free loan/public
learning/Shenzhen household association/annual rental housing for talents
registration/cultural shirt/free vacation/tourism vacation/tourism
dormitory/fair-price canteen allowance
Expecting a
Married Charging baby
Illness
Maternity leave/paternity Medical insurance/physical
Internal training/external leave/maternity examination/paid sick
Marriage leave training/EAP psychological insurance/children's club leave/charity fund
counseling
Insurance Activity Accident Retirement
Unemployment insurance/work League construction/association Bereavement leave/EAP Endowment insurance/memorial
injury insurance activities/galas gifts
42Environmental Protection and Sustainable
Development
- Help the world's low-carbon development and build a friendly
environment with intelligent control technology
43I. The concept of green development
As the society develops towards the trend of "intelligence low-carbonization regionalization and chain-shortening" the company
would seize the historical opportunities of intelligence scenario-based green and low-carbon actively innovate business models and
focus on independent innovation to gain insight into the critical problems of users scenarios and industries provide customers with
intelligent solutions and facilitate the sustainable development of society and the industry.Focusing on the future of "intelligent" and "low carbon": The company used the "four electricity and one network" core
technology of electronic control motor battery power supply and the Internet of Things platform to provide various intelligent
solutions for the four major industries of home appliances tools industry and new energy becoming the world's leading intelligent
control solution provider and continued to expand core technologies and application industries so as to make the world more
intelligent and low-carbon.Jointly building a green and sustainable development ecology: The company would actively respond to the national call for green
environmental protection and low-carbon make full use of its advantages as an intelligent control enterprise and adhering to the
concept of green development join hands with industry chain partners and continue to innovate technology and products creating a
green and sustainable development ecology and helping achieve "carbon peaking and carbon neutrality" goal.II. Green park
During the construction of Topband Park the green concept ran through all aspects of the park planning space layout infrastructure
construction resource and energy utilization pollutant control operation management etc. In addition the green service-oriented and
comfortable park development was achieved to comprehensively improve the green level of the park.Creating a diverse park environment: Topband attached great importance to the environmental management of the park and
assigned special personnel to carry out daily maintenance of the park's greening. Meanwhile the company built public facilities such
as the basketball court badminton court gym nursery room yoga room etc. greatly enriching the rest and activity space of
employees after work and creating a diverse and green working and living environment.Investing photovoltaic power generation facilities: Topband provided solar photovoltaic power generation facilities in Shenzhen and
Huizhou parks with an annual power generation capacity of 300 KW and a power generation capacity of 470000 KW. Moreover the
company provided the Shenzhen Park with a 1-MWh energy storage system to store surplus photovoltaic power. Through the layout
of photovoltaic new-energy power generation + storage and the construction of low-carbon park the company was committed to
realizing the goal of carbon neutrality as soon as possible.
44
Environmental protection and sustainable development - helping the world's low-carbon
development and building a friendly environment with intelligent control technologyII. Green park
Applying frequency conversion control technology: The central air-conditioning system a high-energy-consuming equipment is
mainly composed of the circulating water pump air handling unit and refrigeration compressor. The company uses intelligent
frequency conversion control technology to adjust the water pump and air handling unit not only saving energy but also accurately
distributing cooling capacity and adjusting water flow. With the intelligent frequency conversion control technology about 380000
KWH of electricity is saved in the Shenzhen Park alone every year.Recycling production waste heat: When the air compressor is working it will generate a lot of waste heat most of which will be
exhausted into the air by the cooling fan or cooling tower resulting in waste of heat energy. Considering that the company installs a
heat recovery unit in the compressed air system to convert and reuse the waste heat provide hot water resources for the staff dormitory
and save about 180000 KWH of electricity every year.III. Green office
Topband has established an energy-saving and emission-reduction project team to fully carry out energy-saving and
emission-reduction work through scientific management intensified publicity and implementation of energy-saving and
emission-reduction-related systems.Promoting the idea of green office: Topband has enhanced
employees' awareness of energy conservation by promoting the
concept of green office. The company has clearly stipulated that the
temperature of the air conditioner in summer shall not be lower than
26 ℃;when leaving the office for a long time the employee shall turn
off the air conditioner and lighting; the human body photosensitive
switch and LED energy-saving lamps shall be used in the corridors;
the toilet paper shall be removed from the sink and replaced with
handkerchiefs; paperless office shall be promoted; new-energy
vehicles are used for the commuter buses to encourage green travel
of employees.Advocating water conservation: Topband has actively responded to
the call of the Water Supplies Bureau to save water and took various
water-saving measures including the use of inductive faucets
sticking water-saving signs checking the progress of water-saving
work and completing the water balance test project and has applied
to the Water Supplies Bureau to for the honorary title of
“Water-saving Enterprise”.Off-peak electricity consumption: The company has actively
responded to the call of China Southern Power Grid for off-peak
power consumption and invested in the construction of
energy-storage projects and central air-conditioning water-storage
projects in Shenzhen Park reducing power consumption by about
370KW during peak power consumption periods.
45
Environmental protection and sustainable development - helping the world's low-carbon
development and building a friendly environment with intelligent control technologyIV. Green productionIntelligent manufacturing upgrade: The company has actively responded to the national strategy of “Intelligent Manufacturing in
2025” and promoted intelligent manufacturing upgrade and achieved green development through the digitalization automation
process innovation and other measures.Case 1:
The company has used the MES system vigorously introduced
and developed various automation equipment and built a number
of automated production lines which not only improved
production efficiency reduced the work intensity of employees
but also achieved the company's goal of reducing costs and
increasing efficiency.Case 2:
The company has introduced the WMS warehouse system and
reduced the warehouse area and the number of management
personnel combined with the intelligent material racks and
gradually achieved the goal of intelligent warehouse
management.Improving pollution control: In the course of development Topband is constantly seeking new materials and new processes to reduce
environmental pollution.As for waste water the Company has started a special improvement plan for waste water control reformed and upgraded the existing
production process greatly reduced the amount of waste water and transferred the waste water to a qualified third party company for
hazardous waste treatment for the purpose of legal and compliant transportation and centralized treatment.As for waste gas Topband has adopted the waste gas collection and treatment system so that the exhaust gas is extracted to the roof of
the building by the waste gas treatment device for treatment and is discharged after the standard is reached and every year a qualified
third party testing company is entrusted to test the waste gas before and after treatment so as to ensure that the waste gas treatment
device is effective.As for solid waste due to the technical requirements some hazardous solid waste will be generated in the production. Such waste will
be collected into a special hazardous waste room and disposed of by an external qualified hazardous waste treatment institution on a
regular basis. The Company continuously explores new materials and equipment and constantly improves the process to reduce the
amount of waste.As for noise the Company chooses low noise equipment. According to the noise characteristics of different equipment it takes noise
reduction measures such as foundation vibration reduction installation of mufflers or sound insulation covers or indoor sound
insulation and planting of noise reducing plants around the plant area and high-noise workshops. The boundary noise complies with
the Standard for the Emission of Environmental Noise within the Boundary of Industrial Enterprises (GBL2348-2008).
46
Environmental protection and sustainable development - helping the world's low-carbon
development and building a friendly environment with intelligent control technologyProspect
- Practice the persistence and become a "white horse
stock"
47Prospect - Practice the persistence and become a "white horse stock"
In the future major opportunities in the technology industry will gradually emerge from the general application of intelligent
technology the demand for intelligent controllers will continue to grow rapidly and the industry in which Topband operates will
increase in incremental opportunities. As a leader in intelligent controllers Topband will take technological innovation as the core
capability and with global operation capabilities in China the company will continue to help downstream customers to improve the
level of intelligence and to increase the value of products.The company has always practiced the values of persistence insisted on investing in long-term value and continuously created value
through deep insight into the industry and dedicated execution trying to become a company with a great pattern in the eyes of
investors. Topband also looks forward to having a group of long-term investors who follow the growth of the company and have a
great pattern. The difficulties caused by the external environment are temporary. As long as there are clear strategic goals firm beliefs
and dedicated execution the company will quickly improve the operation and governance level stabilize mature businesses develop
fast-growing businesses expand new businesses realize high-label business and move towards excellence step by step and become a
"white-horse stock" in the capital market.
48Suggestions and Feedback
49Suggestions and Feedback
Dear Reader
Hello! Thank you for your attention to the Topband Annual ESG and Social Responsibility Report 2021. We attach great importance to
your suggestions and feedback on this Report. Your suggestions and opinions are important references for us to improve our social
responsibility performance. Please work with Topband to build a more perfect society. You can send us feedback by mail email or
phone. Thanks again!
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50Make the World More Intelligent and Low-carbon
Topband Industrial Park Shiyan Subdistrict Baoan District Shenzhen China
E-mail: topband@topband.com.cn
Tel.: 0755-2765 1888 Shenzhen Topband Co. Ltd.Website: www.topband.com.cn Stock Code: 002139.SZ
51