TCL科技:2021年环境、社会及治理报告（英文版）

TCL Technology Group Corporation
Environmental Social and Governance
Report 2021
April 2022
1Table of Contents
About This Report ................................... 3
Message from Chairman ............................... 5
Message from Director of CSR Innovation Center ...... 7
About TCL TECH ...................................... 9
Featured Story ..................................... 19
1. Environment: Energy Saving and Emission Reduction for a Greener Home
26
1.1. Green Production .............................. 26
1.2. Green Development ............................. 31
1.3. Green Industry Chain .......................... 35
1.4. Green Culture ................................. 37
2. Society: Shoulder Responsibility for Continuous Value Creation ........ 41
2.1. Continuous Innovation to Lead Technology Transformation ........ 41
2.2. Pursuit of Excellence to Ensure Product Quali.. 50
2.3. Inclusion and Co-Creation for Shared Value .... 56
2.4. Cordial Worksplace Environment to Grow with Employees ......... 60
2.5. Contributing to Society and Engaging in Community Service ....... 82
3. Governance: Excellent Governance to Consolidate the Foundation of
Operation .......................................... 94
3.1. Protection of Investors’ Rights and Interests.. 95
3.2. Compliance Operation and Fair Competition...... 96
3.3. Anti-Corruption ............................... 97
3.4. Information Security Protection ............... 98
3.5. Intellectual Property Protection .............. 99
Future Outlook .................................... 102
Honors and Awards ................................. 104
Key Performance ................................... 105
Reporting Index ................................... 108
Reader Feedback ................................... 117
2About This Report
Reporting Period
This report is an annual report and the time frame is from January 1 2021 to December
31 2021. To improve the completeness of the report some data might exceed the above
range.Reporting Scope
The organizational scope of this report covers TCL Technology Group Co. Ltd. and its
subsidiaries including Tianjin Zhonghuan Electronics Group CO. Ltd1 which was
acquired through public delisting and whose main asset is "Tianjin Zhonghuan
Semiconductor Co. Ltd."
For ease of expression the report uses "TCL" "TCL TECH" "TCL Technology Group"
the "Company" etc. to refer to TCL Technology Group Corporation.Reporting Cycle
This report is an annual report and is released every year with the annual report of TCL
Technology Group Corporation. The Group has issued reports for the thirteenth
consecutive year. The last report was published in March 2021. In order to further
respond to the concerns of the capital market and regulators starting from this year the
Group publishes Environmental Social and Governance (ESG) Report focusing on the
Group's performance in environmental social and governance.Data Description
The data and cases used in the report all come from the company's official documents
statistical reports and summary and statistics of social responsibility performance.Reporting Standards & References
Global Reporting Initiative (GRI) Sustainability Reporting Standard
United Nations Sustainable Development Goals (SDGs)
The Ten Principles of the United Nations Global Compact
Guidance on Social Responsibility (ISO26000) issued by International Organization
for Standardization (ISO)
Guide for Compilation of China Corporate Social Responsibility Report (CASS-CSR
4.0)
Shenzhen Stock Exchange Social Responsibility Instructions to Listed Companies
Guidelines for Environmental Social and Governance Report Issued by HKEX
Reporting Reliability
The company guarantees that there are no false records or misleading statements in this
report.In March 2022 Tianjin Zhonghuan Electronics Group CO. Ltd. changed its corporate name to TCL
Technology Group (Tianjin) Co. Ltd.
3Language and Availability
You can visit the company's official website www.tcltech.com to download the electronic
version of the report and obtain more information on corporate social responsibility. The
report is written in Chinese and English languages. If there is any inconsistency between
the English and Chinese versions the Chinese version shall prevail.Updates to previous CSR reports:
None
4Message from Chairman
Dear readers
After years of development a magnificent picture which directly expresses the original
intention of the dream chasers is in full bloom; Forty years since TCL has been founded
the good times of spring and autumn engraved the glorious footprints of the explorers
and warriors.From 1981 to 2021 adhering to the spirit of self-improvement hardworking and never
giving up TCL has grown from scratch and developed from small to large to strong
illustrating a glorious history of how Chinese companies start develop and thrive. TCL
has always integrated the devotion to family and country and the original intention of
social responsibility into its blood passing it down from generation to generation.In 2021 facing the challenging outside environment of repeated pandemic economic
turmoil and rising price of raw materials we sped up our development and moved
forward. Facing market fluctuations we took advantage of our strengths avoided
weaknesses and faced the challenge calmly. Driven by World Leading Strategy we
adhere to ultimate cost efficiency and improved quality and efficiency in operations. We
optimize product and customer structure forged long plates to complement short plates
and thus significantly enhance industrial competitiveness. Meanwhile we drive
development through innovation and build up core technical capabilities and eventually
achieving a historic leap in business performance.
2021 is the first year of China's "14th Five-Year Plan" period. The central government
proposes to "accelerate the construction of a new development pattern with the domestic
cycle as the main body and the domestic and international double cycles mutually
promoting each other". Only a strong economy can make a country strong and the
nation's prosperity bases on its prosperous enterprise. Entity enterprises play the role of
ballast for economic development and they rely on technological innovation to transcend
and surpass. TCL TECH always bears the mission of the times adheres to the
technology-oriented principle and builds a global R&D system. We strategically invest in
cutting-edge technology perform as a role model for corporate independent innovation
and contribute to making China a manufacturing power.The major industries of TCL TECH all fall within the industrial fields encouraged and
supported by the state. It is a big challenge for us but more as an opportunity. The
transformation and upgrading of China's economy makes sticking to industry
development not only a passion and responsibility but also spare huge room for
development opportunities and value creation. The global layout of TCL TECH not only
contributes to the continuous growth of our own business but also a new exploration of
the global layout of Chinese enterprises and a strong support for the implementation ofChina’s “double circulation" strategy.
5In addition China's commitment to "achieve carbon neutrality by 2060" demonstrates its
determination and confidence to actively respond to climate change and take a green
development path. During this process enterprises bear crucial responsibilities and
obligations. Over the years TCL TECH has always adhered to green development and
explored new ways of further promoting corporate social responsibility. TCL TECH
continues to improve the disclosure of environmental information and also continuously
improves its energy efficiency. Through technological innovation green factories energy-
saving renovation projects etc. we adhere to low carbon concept in production and
operation to help achieve the goal of green development.Forging ahead for 40 years TCL constantly promotes its brand and supports China-made
to burst onto the world stage. Moving forward for 40 years TCL never forgets its original
mission and steps forward with responsibility and dedication.Thank you for your continuous interest and recognition to TCL Technology Group
Corporation!
Mr. LI Dongsheng
Chairman and CEO of TCL Technology Group Corporation
6Message from Director of CSR Innovation Center
Dear readers
In 2021 TCL celebrated its 40th birthday. Looking back we have experienced turbulent
but along that our business continues to expand. With the development of technologies
such as 5G and artificial intelligence (AI) and the start of the Internet of Things (IoT) era
together with the rapid development of the millennial generation industrial innovation
ecosystem co-construction and brand rejuvenation are becoming more and more
important. Despite the continuous transformation and upgrading of the industry we
always adhere to the integration of corporate social responsibility with corporate
development and the integration of technology with public welfare and environmental
protection so as to help promote the national "carbon peaking and carbon neutrality goal"
strategy promote common prosperity and achieve mutual development of companies
and society.In order to better respond to the social responsibility demands and expectation from
various stakeholders of TCL TECH in 2021 we conducted TCL TECH sustainability
materiality assessment. Through benchmarking analysis of excellent domestic and
foreign experiences we have improved the measurability and comparability of
disclosures on major corporate environmental social and governance (ESG) issues. We
keep close attention on company's business dependencies and its impact on the
environment and society communicate the company's adaptability to environmental and
social changes and enhance the quantitative measurement of company sustainability
and social impact.We pay attention to the impact of the company's business on the environment
continuously enhance environmental management and increase investment in
environmental protection. In 2021 TCL China Star Optoelectronics Technology Co. Ltd.
(CSOT) released the "TCL CSOT Carbon Peak & Carbon Neutrality Plan" aiming to
further complete the green procurement mechanism promote the joint actions with
upstream and downstream partners and promote the deeper integration of industry chain
development and carbon neutral path expansion.In addition we promote emission
reduction along the industry chain through green finance and help our member
companies and the upstream and downstream partners along the industrial chain to
improve the level of green development. TCL Zhonghuan reduces the cost of
photovoltaic kilowatt-hour through high-efficiency modules and helps China's energy
transition. In 2021 TCL TECH continued to optimize energy management and increase
the use of renewable energy. Many factories have been approved as national "green
factories" among which TCL CSOT Gemini factories t6 and t7 have obtained the
highest grade of green buildings.We attach great importance to employee management and talent training provide
employees with safe production and working environment and provide various and
diversified training courses for their career development. We are committed to creating
sustainable workplace environment and growing together with employees. In 2021 TCL
TECH invested more than 100 million RMB in safety production and the safety training
attendance amounted to 580000. T Academy CSOT Academy and Zhonghuan Academy
have altogether provided more than 2.2 million hours of trainings for employees covering
nearly 71000 person times.We spend great effort to promote the development of public welfare and philanthropy with
technology advancement and help achieve the country's goal of common prosperity. In
2021 TCL TECH continued to conduct the "A.I. Back Home" project in which the "Eagle
story club" project covered 14 rural pilot schools of 9 provinces bringing high-quality
educational resources and opportunities to more than 2000 rural students; "Xiaoxue
7Music Class" was carried out in 13 schools of 10 provinces across the country covering
more than 3000 students using the power of music to help them grow up healthily and
happily.Looking back on our 40-year journey the values of "change innovation accountability
and excellence" are deeply embedded in the blood of every TCLer creating countless
moments of outstanding breakthroughs. Looking forward TCL TECH will continue to
carry forward the spirit of "courage innovation perseverance change and vision" and
make solid progress in social responsibility demonstrating the responsibility and
dedication of a world-leading enterprise.Thank you for your care and support to TCL. I am looking forward to making more
progress with all of you!
Ms. WEI Xue
Vice President of TCL Technology Group Corporation
Director of CSR Innovation Center
8About TCL TECH
* Company Overview
TCL was founded in Huizhou China in 1981. It started as a local enterprise producing
audio tapes. Over the past 40 years the company sticks to the spirit of reform innovation
transformation and upgrading and has now formed the core industry of semiconductor
display new energy photovoltaic and semiconductor materials. In 2018 TCL established
a twin structure. In 2019 TCL The completed a major asset restructuring - clarified the
business direction with technology as the core focused on the upstream and
downstream industry chains related to semiconductor and intelligent manufacturing and
officially changed its name to "TCL TECH". In 2020 TCL Group acquired TCL Technology
Group Corporation (Tianjin) Co. Ltd. to deploy new energy photovoltaic and
semiconductor materials. In the same year the Group acquired Suzhou Samsung
realizing a new pattern in which large-size LCD panels are dominated by mainland
enterprises.In 2021 TCL TECH adhered to the main business industrial upgrading and global layout
aiming to build China's core assets in the technological landscape enhance its core
competitiveness and make breakthroughs in the journey of globalization. TCL is
dedicated to build a global industrial chain and a complete layout of the supply chain to
become a technology industry group with global competitiveness.
9* Historical Events for the Past 40 Years
* Honors and Economic Achievements in 2021
In 2021 TCL TECH achieved operating income of 163.54 billion RMB with an increase
of 113.3% compared with last year. TCL realized net profit of 14.96 billion RMB with an
increase of 195.3% compared with last year.Historical Events in 2021
February ? Chairman Li Dongsheng was awarded the 2021 "David Sarnoff
Industry Achievement Award" by the The Society for Information
Display (SID).March ? The "National Center of Technology Innovation for Display" led by
Guangdong Juhua New Display Research Institute was founded. It is
the only national technology innovation center in the field of new
display.April ? TCL TECH announced that on March 31st it completed the delivery of
60% equity of Suzhou Samsung Electronics LCD Technology Co. Ltd.
and 100% equity of Suzhou Samsung Display Co. Ltd.? TCL announced to invest in the construction of TCL CSOT t9 project
(the 8.6th generation oxide semiconductor new display device
production line) in Guangzhou and the t9 main factory was capped on
December 9th.July ? 2021 Top 500 Fortune China was released and TCL TECH ranked the
145th.
? Li Dongsheng Founder and Chairman of TCL and Founder of
Huameng Fund donated 100 million RMB to his alma mater South
China University of Technology.Septemb ? The 2021 TCL Global Ecosystem Partner Conference was held in
er Shenzhen and the TCL Global Ecosystem Co-development Strategy
"The Rising Sun Project" was released.? TCL co-hosted the "2021 Forum on Transformation and Globalization
of Chinese Enterprises" with China Center for International Economic
Exchanges (CCIEE) in Beijing.
10? TCL held the 40th Anniversary Commendation Ceremony in Huizhou.
October ? TCL ranked the 273rd on the 2021 Global Best Employer List
released by Forbes magazine as one of 57 selected Chinese
companies.Vovembe ? TCL SCOT South China University of Technology and Guangdong
r Juhua signed agreement to build a joint laboratory on the R&D of
oxide TFT and industrial application projects.? TCL Zhonghuan DW Smart Factory (Phase III) project started
construction in Tianjin officially launching the construction of an
annual 25 GW high-efficiency solar ultra-thin silicon single-chip smart
factory project.Decembe ? The 10 billion investment in TCL semiconductor display industry chain
r and the Huizhou CSOT high-generation module expansion project
were launched in Huizhou. The project covers high-generation glass
substrates large medium and small display modules and complete
machines.* Corporate Culture
TCL is committed to creating a more dynamic corporate culture. Based on corporatemission of "Building a Sustainable& Connected Future with Advanced Technology” TCL
also clarified its values and talent philosophy.
11* Corporate Strategy
TCL TECH adheres to the strategic decision of "go uphill with full speed catch up and
surpass transform and break through and reach a new level" firmly inheriting the spirit
of "courage innovation perseverance change and vision" and continues to implement
the business strategy of "improve operation quality and efficiency strengthen
weaknesses innovation-driven development and accelerate global deployment". Led by
technology and driven by innovation TCL continues to strengthen the competitive
advantage of the manufacturing industry. By empowering the industry through industrial
finance and supporting industrial operation and expansion TCL takes advantage of its
12industrial advantages to invest in enterprises from the eco system and enhance
comprehensive competitiveness in order to establish its global leading competitiveness.Semiconductor display technology and materials is one of the most important and
fundamental technology industries with broad prospects in future. TCL CSOT will improve
the strategic layout of the industry optimize its products and customer structure and
build an industry ecology to strengthen the control of value chain and speed up the
growth of corporate scale. Meanwhile TCL CSOT makes the first breakthrough in new
display technology and material innovation and achieve overall leadership in key
technologies such as image quality energy efficiency and cost reduction. In addition
TCL CSOT accelerate the development of cutting-edge technologies in response to the
trend of overall supply and demand balance transforming technology into operating
performance and catch up with and surpass benchmarking companies.In addition TCL TECH will rely on the semiconductor advantages of Zhonghuan to
continue to open up a new track for the Group improve the layout of the new energy
photovoltaic industry strengthen the competitiveness and technological advantages of
the monocrystalline silicon industry accelerate the construction of the photovoltaic
energy industry chain and enhance the capabilities of photovoltaic modules and
batteries. TCL Zhonghuan is highly in line with TCL spirit. With its dedication to
technology and development Zhonghuan has always stood firm and moved forward with
determination. At present Zhonghuan shall consolidate its core competitiveness and
maintain a leading position in technological competitiveness. Zhonghuan will accelerate
the building components battery and photovoltaic power plant operation and
maintenance capabilities and improve its international operating capabilities so as to
achieve the "global leading" strategic goal in the long run.Nowadays the reconstruction of the global political and economic landscape and the
national economic structure adjustment have brought TCL strategic opportunities for
accelerated development. TCL TECH will seize the opportunity of China's "dual cycle"
development model and focus on core business to drive development with technological
innovation. TCL will accelerate the layout of the global industrial chain and build global
competitiveness by cultivating new businesses developing new tracks strengthening
mutual strategic support for the development of various industries and opening up a new
growth curve.Through completing investment layout and ecosystem construction and
playing the advantages of industrial clusters TCL will strengthen its competitiveness
continue to improve quality and efficiency and is endeavor to be a global leader in the
fields of display new energy and silicon wafers.* ESG Management
TCL TECH firmly integrates corporate social responsibility with corporate strategy and
operation. TCL TECH supports China’s "carbon peaking and carbon neutrality" strategy
with scientific and technological innovation and endeavors to achieve the mutual
13development of enterprises and society. TCL links technology with public welfare to
promote common prosperity.In 2021 based on benchmarking analysis of excellent domestic and foreign experiences
TCL TECH improved the measurability and comparability of disclosures on major
environmental social and governance issues and further disclosed information on key
ESG risks and opportunities with key focus on business dependencies and impact on
the environment and society.* ESG Strategy Development
Since the establishment of the CSR Innovation Center in 2016 TCL has been exploring
ways for the Company to best fulfill its corporate social responsibility strengthen
management capacity on environmental social and governance (ESG) to create shared
values among the Company and the society. In 2019 TCL TECH revised TCL
Technology Group Corporation Internal Control Specification No. 14 - Social
Responsibility of which clearly defines the seven core issues of corporate social
responsibility including organizational governance employment promotion and
protection of employees’ rights and well-being health and safety environmental
protection fair operation customer relations community engagement and development
and clarifies TCL’s ESG scope requirements and management mechanisms. In 2021
TCL added issues of carbon peaking carbon neutrality and common prosperity onto the
original corporate social responsibility issues.* ESG Communication Promotion and Trainings
To enhance social responsibility management TCL TECH attaches great importance to
internal promotion of environmental social and governance knowledge by conducting
CSR trainings among all its industries to increase employees’ awareness and capacity.TCL TECH also disseminates corporate social responsibility information and knowledge
among employees and the general public through various channels such as TCL
Dynamic TCL CSR WeChat accounts etc.* ESG Risk Monitoring
As a group company in its multi-sector operations across various industries TCL TECH
monitors its own and its subsidiaries’ ESG risks through on-site audits and online
monitoring tools. Once identified remediation process will be carried out. We cooperate
with a well-known Chinese environmental NGO Institute of Public & Environmental
Affairs (IPE) via its Blue Map database to monitor our subsidiaries’ potential
environmental violation and risks.
14* ESG Materiality Analysis
To further improve TCL TECH's scientific and targeted management on CSR material
issues TCL adopts internationally recognized methods and selects internationally
authoritative sustainability and CSR standards and guidelines for benchmarking
including Dow Jones Sustainability Indexes (DJSI) Morgan Stanley Capital International
(MSCI) Global Reporting Initiative (GRI) etc. Based on these universal materia issues
TCL TECH screens its own issues according to the company's impact on society and the
environment key focus from stakeholders industry situation and company's own
characteristics. With sufficient discussion and dialogues with TCL internally and
externally prioritized stakeholders 20 materiality issues from 6 aspects of governance
product and service environment industry chain management employee and
community are considered material both for TCL and its stakeholders and shall be closely
focused and disclosed.Society
Environmen
Industry Governanct
Product Chain Communit
e
Employee
and Service Managemen y
t
Use of Technologic Suppliers’ Protection of Community Corporate
renewable al innovation social employees’ economic governance
energy responsibility rights developmen
t
Energy Product Conflict Occupational Charity Risk
efficiency governance minerals health and events managemen
and services management safety t
Water Coordinated Employee Business
resource development growth and ethics
management of industrial development
chain
Disposal Employer
under attractivenes
compliance s
Combat Employee
climate care
changes
* Stakeholder Engagement
TCL TECH believes that only by cooperating with stakeholders we can make continuous
progress together. In daily operations TCL TECH attaches great importance to
communication with stakeholders and continuously improves various communication
mechanisms actively listens to the voices of related parties understanding their
demands and responding actively with practical actions for mutual development with
stakeholders.
15Stakeholders Issues of Interest Response Key Measures in 2021
? Transparent ? Standardize ? Organize investors
Shareholders
information company open days to
and investors
disclosure management and explain business
? Continuous regular strategies to
value creation communication investors
? Complete risk with investors via ? Asset restructuring
management multi-channels and focus on core
? Continuously carry industries to
out corporate improve profitability
strategy and
develop
advantageous
industries
? Law-abiding ? Abide by national ? Launch internal
Government
and compliant laws and management such
and
operation regulations as TCL Group Audit
regulators
? Respond to and Supervision
national ? Take advantages Measures for
policies of to corporate Problem
? Play a leading resources to Identification and
role in actively fulfill its Rectification
promoting social ? Launch Integrity
harmonious responsibility TCL WeChat
development account and online
of society reporting channel
? Continue to deepen
internationalization
? Specify 7 key CSR
issues
? Product ? Enrich product ? Introduce series of
Consumers
innovatoin to categories smart and
and clients
meet customer improve product innovative products
needs quality for a wider to meet diversified
community consumers’ needs
? Continuously
improve ? Carry out customer ? Customer
service quality satisfaction satisfaction survey
and protect surveys needs and after sale
customers’ assessment and service to provide
privacy continue to make full life cycle
improvement services
? Strengthen ? Collect users’
customers’ privacy feedback analyze
protection and propose
solutions
? Comply with legal
requirements and
strictly protect
customers’ privacy
? Standardize ? Develop supplier ? Promote supplier
Suppliers and
the selection policy for compliance in
deals
procurement fair procurement environmental
16process and ? Suppliers’ protection safety
fair evaluation audit and employment
competitive trainings and
mechanism communication ? Organize trainings
? Provide support for and exchanges
? Achieve partners
mutual ? Provide financing
benefits with platforms to help
industry chain partners develop
partners
? Drive industry
development
? Safeguard ? Compliance with ? Establish
Employees
legitimate laws and recruitment policy
rights and regulations to according to
interests protect employees’ relevant laws
? Occupational fundamental rights
health and and interests ? Multiple channels
safety for employees’
? Optimize ? Improve complaints and
compensation occupational feedbacks
al benefits health and safety
Respect measures ? Organize safety ?
diversity and trainings and build
cross-cultural ? Offer competitive up corporate culture
lifestyle salary and welfare
? Organize cultural
? Mutual
? Employee care sports and
development
activities recreational
with
activities for work-
employees
? Employee capacity life balance
? Enhance building and
employer’s establish career ? Continuously
competitivene development conduct systematic
ss system trainings for
domestic and
foreign employees
through T Academy
SCOT College
Zhonghuan
Academy
? Care for the ? Support youth ? Daily operation of
Community
next development Shenzhen TCL
generations Foundation
? Environmental
? Improve protection ? Conduct student aid
community and teacher
environment ? Support assistant programs
community
? Help development ? Support
vulnerable environmental
groups ? Conduct volunteer public welfare
activities projects
? Improve residents
well-being
17? Organize
employees to
provide community
service
? Climate ? Promote green ? Build green
Environment
change production factories
? Resources ? Launch green ? Energy saving and
efficiency products green product
development and
? Industrial ? Establish production
wastewater environment- ? Build green supply
waste gas and friendly companies chain
residue ? Carry out green
treatment finance
? Effective ? Develop green
recycle of industries
waste
18Featured Story
Feature Story 1: Technology Empowerment to Support Rural Education
Corresponding SDGs：
Taking advantages of TCL TECH leading industry know-how TCL Foundation supports
the development of rural education and helps rural revitalization through the innovative
model of "technology + charity". TCL Foundation continuously carrys out “A.I. Back Home”
Project which developed the "Eagle" story robot that can simulate the voice of parents to
tell stories for left-behind children and accompany them when their parents are not
around. As for “Little Musician +” Project the designed "Xiaoxue" (also known as Little
Snow) music robot brings world-class music resources to children in rural area. By
organizing “Eagle Story Club” and “Xiaoxue Music Class” The Project brings high-quality
educational resources and opportunities to rural children so that more rural children can
enjoy the power of technological innovation.* AI Education: Always Around
Mr. Wu Junmin Principal of Xiangyang Primary School is an award-winning teacher ofthe 6th "TCL Project Hope Candlelight Award". He not only actively organize “Eagle StoryClub” at his own school but also promotes it to other schools in the Sui County teaching
cluster. During the visit of the third batch of pilot schools by TCL Foundation in 2021
schools such as Zhangzhuang School Shangzhuang School Jiemiao Primary School
and Liuzhuangzhai School in Kuangcheng Town of Sui County have all carried out
demonstration classes.At the demonstration class TCL volunteer made use of "Eagle" story robots to introduce
a very interesting story sharing with the students. The students proactively participated in
the Q&A session during the sharing and they say the "Eagle" story robot is just like a little
"teacher" and to listen to "Eagle" story robot is very innovative and interesting. In future
teachers will organize "Eagle" story club every week so that students can learn more
ancient and modern cultural stories of China and the world under the guidance of "Eagle"
story robots.
19In 2021 the "Eagle Story Club" project was conducted in 14 rural pilot schools of 9
provinces. A total of 50 "Eagle" story robots were distributed benefiting more than 2000
rural children.* AI Art: Talent Development
This is a demonstration class of "Xiaoxue Music Class" held at Haokou Primary School
and Dingshuanglou Primary School in Henan Province. TCL volunteers are using
interactive music appreciation online music class and music knowledge quizzes to let
students vividly enhoy and appreciate classical music. "Xiaoxue music robot" has not
only become a good assistant for teachers but also an extended class for students in
rural schools to learn about music culture. Through "Xiaoxue music robot" the students
listen to famous Chinese and western music as well as the professional appreciation by
the Central Conservatory of Music. Moreover Huameng students from the Central
Conservatory of Music as volunteers shared their professional music knowledge with
the students through video.In 2021 the "Xiaoxue Music Class" was carried out at 13 schools of 10 provinces across
the country and a total of 50 “Xiaoxue music robots” were distributed benefiting more
than 3000 students.
20Feature Story 2: Strategic Carbon Emission Reduction to Address Climate Change
Corresponding SDGs：
To cope with the challenge of global climate change TCL TECH firmly sticks to green
development and is committed to achieving energy conservation and emission reduction
of green operation from all aspects. TCL TECH has effectively reduced carbon emissions
by continuously enhancing energy management system increasing the use of renewable
energy building green supply chain and enhancing employees' low-carbon awareness.Meanwhle TCL TECH actively expands its green industry photovoltaic semiconductor
industry through TCL Zhonghuan to support addressing climate change.In terms of efficient energy management TCL TECH has established a sound energy
management system for major industries and has gained ISO50001 certification. In 2021
TCL China Display Optoelectronics Technology (CDOT) saved 3915500 kWh of
electricity through energy management such as improving production efficiency. Suzhou
CSOT launched the ultimate kinetic energy project to carry out extreme frugality in
utilities such as water electricity and gas. In 2021 the targeted cost saving of the whole
year was 51.11 million RMB while the actual achievement was 52.16 million RMB with
an achievement rate of 102%.In terms of increasing the use of renewable energy TCL TECH is actively promoting the
installation of rooftop photovoltaics. Following the principle of "as many as possible"
Shenzhen CSOT has independently developed the largest photovoltaic power generation
system of the industrial parks in South China by using the existing factories roofs. By the
end of 2021 the total installed capacity of Shenzhen CSOT photovoltaic power
generation has reached 44 MWh which can generate 44 million kWh per year and the
annual energy saving is equivalent to the daily electricity consumption of 220000
households. In addition the rooftop solar photovoltaic project of Huizhou CSOT
generated 21.5 million kWh in 2021.As for green supply chain TCL TECH takes means of green finance to help its member
companies and industry upstream and downstream companies to improve the level of
green development. On April 30th 2021 TCL TECH successfully launched the first green
bill rediscount with an amount of 130 million RMB which is expected to save nearly one
million RMB in costs for companies. On November 11st 2021 TCL TECH successfully
launched the country's first "Green Carbon Chain Link" business of supply chain finance
based on corporate low-carbon evaluation. "Green Carbon Chain Link" not only saves
more financial costs for companies but also encourage companies to carry out energy-
saving and emission-reduction transformation.
21TCL TECH continuously carrys out various environmental protection trainings
experience sharing and theme activities in terms of raising employees' low-carbon
awareness. On December 2nd 2021 TCL TECH launched the Initiative for All Employees
to Promote Energy Conservation and Carbon Reduction and Maintain the Spirit of Hard
Working aiming to call on all employees to follow the concept of green office implement
"the extreme cost efficient" philosophy and embrace the spirit of hard working. The Group
has cultivated strong atmosphere of energy saving and carbon reduction for all
employees to support environmental protection and build a green homeland together.In terms of layout of green industries TCL Zhonghuan accelerates the production and
manufacturing of semiconductor materials and emphasizes the company's industrial
layout across the country with manufacturing bases in Inner Mongolia Tianjin and
Jiangsu. Meanwhile TCL Zhonghuan continues to reduce the cost of photovoltaic
products through R&D and innovation and strives to make new energy such as
photovoltaics to be “affordable”. The installed capacity of TCL Zhonghuan's wholly-owned
photovoltaic projects has reached 1.2 GW.In the future different entities of TCL TECH will continue to make efforts in the field of
sustainable development continue to explore and implement carbon reduction strategies
and lead industry and the entire value chain for greener and lower carbon development.
22Feature Story 3: Building a "Smart Factory" through Innovation
Corresponding SDGs：
TCL CSOT continuously promotes the transformation and upgrading of intelligent
manufacturing effectively combines artificial intelligence (AI) with industrial Internet of
Things (IOT) applications optimizes production lines and builds more intelligent and
more advanced smart factories. Driven by the company's actual business situations TCL
CSOT concentrates its efforts on technical research and application focusing on the
company's core needs such as quality improvement cost reduction and efficiency
enhancement and develop industrial internet platform to realize the construction of
intelligent working environment and smart industrial parks as soon as possible for the
digital transformation of the company.* RPA to Improve Work Efficiency for Its Automatic Data Processing and Storage
Robotic Process Automation (RPA) is a business process automation technology based
on software robots and artificial intelligence (AI). As a virtual workforce it simulates a
worker's use of a computer system's user interface automating desktop-based business
processes and workflows that meet certain standards.* Unify Digital Intelligence Application Portal to Build TCL Digital Intelligence
Platform
Using the low-code development platform developed by Getech and the TCL CSOT big
data platform TCL Digital Intelligence Platform can quickly iterate over data quickly
create applications that meet the needs of different business units and achieve
23automatic and intelligent data collection analysis and transmission with flexible
customization and configuration.* One-Click Data Query to Make Perfect Integration of Effective Yield
Management System with SPC Monitoring System
iSPC is a common term of the effective yield management system and the Statistical
Process Control (SPC) Defect monitoring system. This system can realize automatic
prediction and detection of abnormal yield automatic prohibition of abnormal equipment
and locking of abnormal products. It makes daily analysis and monitoring more visualized
automatic and intelligent which can make up for the lack of timeliness of personnel
analysis or possible personnel omissions and thus making engineering workflow more
automatic.* Industry First ADC System Identifies Defects of Display "Fast and Accurate"
Applying ADC automatic defect classification system that is deep learnt and developed
by artificial intelligence (AI) technology allows machines to accurately classify defects
while detecting and thus provide guidance for future production. The ADC system of TCL
CSOT is the earliest and most widely used in the industry which has been fully launched
at t1 t2 and t6 of Shenzhen CSOT and achieved the intelligent production line.* MFA System Realizes Massive Data Analysis and Modeling to Effectively
Improve Predictive Analysis Capability
Muli-Factor Analysis (MFA) the big data platform is connected to the TCL CSOT Hadoop
data analysis platform from where a large amount of production data can be quickly
analyzed. MFA aims to provide convenient visual multi-factor agile data analysis self-
service tools for industrial sites as well as one-stop services such as data cognition data
analysis data modeling model management and engineering management.* FDC System Assists Accurate Fault Detection to Improve Equipment
Preventive Detection Capability
Fault Detection and Classification System (FDC) can be used to establish a baseline for
equipment operation as well as to predict failure or determine the root cause of a
problem by comparing current equipment operation to the baseline.* EMS Facilitates Energy Saving and Consumption Reduction to Create an
Industry Role Model
EMS also known as TCL CSOT Smart Energy Management System is a brand-new
energy management platform. Based on the company's existing energy management
model and combined with digital technology it can visualize dynamically monitor
analyze and process the company's key energy consumption indicators in real time. This
system can improve the efficiency of the company's operation and management
decision-making.* Remote Operation and Maintenance System Based on AR technology to
24Effectively Reduce Equipment Operation and Maintenance Costs
The AR remote maintenance system is a remote operation and maintenance system that
combines AR technology and 5G communication technology. Using the AR remote
operation and maintenance system the on-site employees can conduct remote diagnosis
and maintenance processing with external experts through the virtual reality (VR) of the
equipment presented by the AR technology thus can effectively reduce equipment
operation and maintenance time and costs and further avoid high cost losses caused by
long-term downtime to the company and cost paid to expert for on-site diagnosis and
maintenance services.* IoT Technology Autonomous Solutions to Predictively Maintain Real-Time
Equipment
The Internet of Things (IoT) refers to the real-time collection of information on any object
or process that needs to be monitored connected and interacted through various
sensors and other devices and technologies to achieve intelligent perception
identification and management of objects and processes. The IoT autonomous solution
replaces high-cost retrofit projects and thus reduces retrofit costs.* Stimulate Manufacturing Site through AI Technology for Real-Time Online
Detection
Based on artificial intelligence (AI) technology once the hardware (server) and software
(image algorithm model) are deployed in the factory the AI detection technology can be
used as real-time online detection of defects that are prone to occur in the factory by
using the current pictures of factory equipment.
251. Environment: Energy Saving and Emission Reduction for a
Greener Home
TCL TECH has always been actively practicing green low-carbon and sustainable
development at all aspects of production and operation to respond to China’s "carbon
peaking and carbon neutrality goal" strategy and to address climate change and other
environmental challenges. In 2021 TCL TECH continued to enhance related
environmental management system optimized resources efficiency in the production
process and promoted the clean production model. Meanwhile the Company actively
practices green development from green products and layout of green industries to
promotion of green culture. TCL leads the upstream and downstream partners along the
value chain to create sustainable development and promote the harmonious coexistence
of man and nature.
1.1. Green Production
In order to ensure the effective implementation of Sustainable Development Goals
(SDGs) TCL TECH has established a sound environmental management mechanism
over the years. Each production site has established an environmental and occupational
health and safety management system in strict accordance with ISO14001 and
ISO45001 standards integrated environmental management into the operation process
and ensured the continuous implementation maintenance and improvement of system
management.Meanwhile TCL TECH’s subsidiaries have all established sound environmental incident
management system and formulates the Emergency Plan for Environmental Incidents
from the perspective of environmental incident management and control duties of the
main responsible for environmental protection and ensuring the institutionalization and
standardization of environmental protection supervision. According to the Emergency
Plan emergency drills are carried out regularly for the precaution and emergency
management of environmental risks.The major subsidiaries of TCL TECH have established Air Pollution Control Management
Procedures Noise Control Management Procedures Solid Waste Management
Procedures and Energy Resource Consumption Management Procedures with
reference to ISO50001 Energy Management System and ISO14064 Greenhouse Gas
Verification Standard. Strict environmental KPIs and targets have been formulated and
various environmental indicators are monitored online in real-time. The Company has set
a stricter internal control on emissions which is even higher than government emission
standards. All these are to comprehensively identify control the key environmental
performances of the Company's various activities and product and service processes
and to take targeted measures.
261.1.1 Build Green Factory
In order to carry out green production TCL TECH establishes implements maintains
and continuously improves the green factory system in strict accordance with the
requirements of green factory standards. Moreover the Company integrates the concept
of green production and green manufacturing into its daily production and operation
management. In 2021 TCL TECH subsidiaries continuously implemented programs on
green factories and green buildings.TCL TECH Certification on Green Factory
* t3 project of Wuhan CSOT awarded as Green Factory by Ministry of Industry and
Information Technology
* t4 project of Wuhan CSOT awarded as Three-Star Green Building certificate by
Wuhan Urban and Rural Construction Bureau
* Shenzhen CSOT awarded as National Green Factory
* t6 project of Shenzhen CSOT awarded LEED Platinum Certificate and Three-Star
Green Building Label. t7 project of Shenzhen CSOT awarded Three-Star Green
Building Label.
27* Shenzhen CSOT passed the municipal clean production audit and obtained the
"Near-Zero Carbon Emission Building Pilot" certificate.* Huizhou CSOT awarded Three-Star Green Building Label.TCL CSOT Implement Energy Management System
In order to achieve real-time and effective management of energy consumption TCL
CSOT has established a smart energy management center which promotes efficient
use of energy through flat and dynamic monitoring and digital management of all types
of energy.In 2021 TCL CSOT carried out a total of 113 energy conservation and environmental
protection measures from aspects of energy conservation management technological
transformation parameter optimization such as energy efficiency monitoring of ice
machines CDA heat recovery VOC combustion furnace gas energy conservation and
FAB lighting in-depth energy conservation FFU speed reduction and energy saving
high-power equipment staggered power consumption PCW system water supply
temperature increase and FAB control temperature increase effectively reducing the
use of various forms of energy to reduce carbon emissions.Meanwhile the Company realizes continuous tracking management of building energy
28through electromechanical debugging. By pre-set energy monitoring instruments
FMCS monitoring system and energy data capture the Company can track and
conduct a one-year equipment energy consumption analysis so as to identify and
improve the abnormality in time make sure that the equipment operates efficiently and
with low consumption during the operation period to eventually realize the
comprehensive control and management of Company's energy consumption.In order to promote low-carbon production and help achieve the goal of national "carbon
peaking and carbon neutrality" and the Group's low-carbon strategy TCL TECH
subsidiaries continuously explore and utilize renewable energy and build low-carbon and
green production parks. Following the principle of "as many as possible" Shenzhen
CSOT has independently developed the largest photovoltaic power generation system of
the industrial parks in South China by using the existing factories roofs. In 2021
Shenzhen CSOT completed the grid-connected use of the photovoltaic power generation
system of the t6 R&D building (the first and second phases of the AGC roof with an
installed capacity of 2.28 MWh and 2.70 MWh).In 2021 the total amount of greenhouse gas emission of Wuhan CSOT is 624000 tons
of carbon dioxide equivalent and Shenzhen CSOT 3.353 million tons of carbon dioxide
equivalent2.
1.1.2 Air Pollution Emissions Management
In order to implement the Cleaner Production Promotion Law of the People's Republic of
China and national Notice on Further Promoting Cleaner Production Review in Key
Industries TCL TECH attaches great importance to air emission in the production
process and strictly manages air pollutants from aspects of source reduction process
Some data are from company self-checked.
29control and end-of-pipe treatment.
In 2021 in response to the call for “Blue Sky Plan” TCL TECH subsidiaries conducted
strict inspections on air pollutant emissions. Suzhou CSOT set up 11 online exhaust gas
monitoring equipment to monitor pollutant emission data in real time. Huizhou CSOT
formulates its own environmental monitoring plan every year and invites third party
organization every quarter to collect factory samples and send the results to the "National
Pollution Source Monitoring Platform" for public information disclosure. Shenzhen CSOT
installed a nitrogen oxide treatment system to treat the exhaust gas generated in the
production process which can effectively reduce NOX emission and eliminate the
abnormal "yellow smoke" from the chimney. On the other hand Huizhou CSOT adopted
activated carbon adsorption to treat exhaust gas set the pressure difference standard
according to the pressure difference meter to monitor the pressure difference between
the inlet and outlet every day and entrusted a third-party organization to monitor the
outlet discharged every year so as to realize the control of air pollutants and strict
management of emissions. Wuhan CSOT installed 5 VOC online monitoring systems
which are connected to the Wuhan City Pollution Source Monitoring Platform to display
the emission results in real time. In 2021 all TCL TECH subsidiaries met national and
regional standards for air pollutant emissions.
1.1.3 Solid Waste Management
TCL TECH strictly abides by the relevant national laws and regulations on waste
management strictly controls risks and sets up corresponding disposal measures for
different types of wastes. The solid waste produced by each subsidiary is divided into
general waste hazardous waste and household waste. Among them general waste is
treated by TCL Environmental Technology for resource reuse and disposal domestic
waste is handed over to professional cleaning companies for central recycling and
processing after sorting and hazardous waste is treated by qualified hazardous waste
disposal agencies for disposal according to the requirements of laws and regulations.Meanwhile each subsidary continues to optimize and innovate their production
processes promote the reduction and recycling of waste in the production process
reduce the generation of waste in the production process and continuously improve the
utilization rate of waste.Indicator Unit 2021
Annual waste recycled Ton 107375
*The data covers Shenzhen CSOT Huizhou CSOT Wuhan CSOT Suzhou CSOT Tianjin Printronics
Circuit Corporation (TPC) and TCL CDOT
301.1.4 Water Resource Management
TCL TECH subsidiaries actively respond to local environmental protection requirements.Wastewater treatment stations are built at the production base and various types of
wastewater are classified and treated with industry-leading technologies. As a result all
treated water reach the internal control standards which are far ahead of national
discharge standards. Shenzhen CSOT also innovatively introduced constructed wetland
technology to make the drainage reach the Class IV standard of surface water and
achieve the perfect coordination between production and nature.During the mean time TCL TECH subsidiaries carry out regular water-saving initiatives
and actively explore ways to recycle water resources. Suzhou CSOT saves water
through use of CRO concentrated water use of reclaimed water and air-conditioning
humidification and drainage reuse projects. In 2021 the amount of COD and ammonia
nitrogen emissions of wastewater generated from TCL TECH subsidiaries are lower than
national and local standards.Pure Water Recycling System to Reduce Waste
In the production of LCD panel display devices of Shenzhen CSOT a large amount of
pure water needs to be used for cleaning to ensure the product quality. The
preparation of pure water requires a large amount of tap water while in the end
generates a large amount of waste water. The company studied the nature of
recyclable wastewater and built a pure water recovery system to recycle the pure
water used for production and cleaning.In 2021 Shenzhen CSOT introduced the t7 pure water recovery system with a daily
water recovery volume of 25761 cubic meters and a pure water recovery rate of over
75%. At present through the t1 t2 t6 and t7 pure water recovery systems a total of
34.6 million cubic meters of pure water can be recovered every year saving 172
million RMB of water cost. It further improves the company's water utilization rate
reduces water waste and reduces the company's operating costs enabling the
company to take a new step towards achieving a greener manufacturing goal.
1.2. Green Development
To support China’s "carbon peaking and carbon neutrality goal" TCL TECH adheres to
green development and is keen to deliver green products and invests in green industries.
31TCL TECH subsidiaries actively develop green products and promote the green
management of along product’s entire life cycle.
1.2.1 Green Product
TCL TECH has strong focus on green product. By improving the energy efficiency of
products through technological innovation and reducing the adverse effects of products
on the environment in the production and use phase TCL TECH is dedicated to provide
customers with environmental products and convey its sustainable development concept
to users through products.TCL CSOT launched a 23.8-inch FHD display. The product achieves a high penetration
rate of 5.6% through advanced technical means such as a large aperture ratio and an
enlarged glass substrate gap and thus reduces energy consumption by 45% compared
with conventional products. In 2020 this product obtained the Energy Star ES8.0
certificate issued by U.S. Department of Energy and U.S. Environmental Protection
Agency.In 2021 the photovoltaic silicon wafers produced by Tianjin Huan’ou Semiconductor
Materials Technology Co. Ltd. and Wuxi Zhonghuan Applied Materials Co. Ltd. were
listed as Green Design Products in the Green Manufacturing List of the Ministry of
Industry and Information Technology.TCL TECH attaches great importance to the management of hazardous substances in
products and has established a hazardous substance management system based on
QC08000 the Hazardous Substance Process Management (HSPM) system and
customer requirements. With reference to global regulations on the control of hazardous
substances and customer requirements each company establishes a hazardous
substance control list based on the actual situation of their products. The list includes
restricted substances substances that need to be declared and future restricted
substances which provides guidance to the materials selection at product design phase
and the requirements to suppliers.
32TCL TECH requires that all materials require chemical composition confirmation and self-
declaration. Only materials that meet the standards can be used for mass production
and regular random testing of finished products for double check.
1.2.2 Green Industry
Adhering to the low-carbon and sustainable development concept TCL TECH actively
invest in green industries. TCL Zhonghuan accelerates the production and manufacturing
of semiconductor materials. In 2021 the company's 8-12-inch large silicon wafer project
in Wuxi was rapidly put into production further completing the company's national
industrial layout with manufacturing bases in Inner Mongolia Tianjin and Jiangsu. By the
end of 2021 the targets of monthly production capacity of 8 inches to 750000 pieces
and 12 inches to 150000 pieces were achieved.TCL Zhonghuan continuously reduces the cost of photovoltaic products and promotes
energy transformation through R&D and innovation and further promotes the
development of the photovoltaic industry. The company continues to focus on the
development and integration of the two major platforms G12 large-size silicon wafers
and high-efficiency shingled module technologies and actively responds to the market's
demand for large-size high-power products and contributes to the low-carbon
development of society.TCL Zhonghuan G12 Silicon Wafer
The solar silicon wafer G12 product is the world's first 210mm-sized G12 ultra-large
solar monocrystalline silicon wafer with the diameter of 295mm (12 inches) an
increase of 80.5% compared to the conventional product M2. The power generated by
a single cell can reach 10.01W which is nearly twice the power generated by
conventional products. High-efficiency battery technology is further added reducing
more than 6% of electricity cost and the component power exceeding 600W. The
company continues to promote the dual-platform technology application of "G12 +
shingled" making G12 and shingled the key and effective products to realize
affordable photovoltaic power generation.
33Guided by technological innovation and strategic cooperation TCL Zhonghuan actively
explores new energy power station services such as photovoltaic power station
development and construction photovoltaic power station design and comprehensive
energy services. The company actively develops undertakes operates and maintains
various photovoltaic power station projects. At present the installed capacity of TCL
Zhonghuan's wholly-owned project has reached to 1.2 GW.TCL Zhonghuan 120 MW Agriculture and Animal Husbandry Complementary
Concentrated Photovoltaic Power Station at Dongshanyong Wuchuan County
Inner Mongolia Autonomous Region
As an environmentally responsible company TCL Zhonghuan always views
"environmental friendliness" as the bottom line of its business and endeavors to provide
sustainable power for the global green energy industry.Located in Wuchuan County Hohhot City Inner Mongolia Wuchuan Dongshan
Yongnong and Animal Husbandry Complementary Concentrated Photovoltaic Power
34Station is an efficient and ecological photovoltaic power station with an installed capacity
of 120 MW. The power station project makes full use of the local rich solar resources and
combines solar power generation with modern agricultural planting and breeding which
has positive demonstration for the protection of the natural environment and the
comprehensive development and utilization of modern agriculture.
1.3. Green Industry Chain
TCL TECH subsidiaries not only strictly fulfill their environmental responsibilities but also
endeavors to embed the concept of environmental protection into all key aspects along
the industrial chain. Through continuous innovation and optimization in procurement
logistics warehousing and packaging pollution and waste can be directly reduced in the
manufacturing process for better environmental sustainability. Meanwhile the Company
actively explores and offers green finance along the supply chain and is committed to
drive green and sustainable development throughout the entire chain.
1.3.1 Green Procurement
In order to implement green procurement TCL TECH strengthens suppliers’
environmental management. The Company issued the Green Procurement Management
Procedures which clearly defines the hazardous substances of the products and issues
that suppliers shall follow in order to jointly comply with laws and regulations and
shoulder responsibility to protect environment and reduce impact on ecosystem.As for the supplier on-site system certification the CSR audit and management system of
TCL TECH subsidiaries clearly states that several factors are taken into consideration
such as whether suppliers provide annual project and achievement report on energy
conservation and emission reduction whether they conduct greenhouse gas inventory
and whether they operate according to ISO50001 energy management system.
35As for supplier management TCL TECH formulates Supplier Corporate Social
Responsibility Statement and Supplier System Certification (Inspection) Operation
Instruction which put forward clear requirements towards manufacturing suppliers for
their environmental management. When conducting supplier selection or performance
evaluation if a supplier fails to meet the environmental requirements the Supply Chain
Center will set up a meeting with the supplier’s top management for mutual recognition
and provide guidance and coacing to supplier’s responsible personnels.
1.3.2 Green Logistics and Warehousing
In terms of logistics TCL TECH subsidaries keeping on promoting green and clean
logistics. Diesel forklift trucks are banned in Huizhou CSOT factories and electric forklifts
are now in use instead which effectively reduces the exhaust emissions and energy
consumption for transportation within the factory and thus can reduce the impact on
environment. TCL CDOT continues to optimize logistics and transportation management
and adopts the principle of full-vehicle and car-pooling transportation in the transportation
process so as to improve transportation efficiency.In order to ensure warehousing procedures green and safe TCL TECH subsidiaries have
all built leakage ditches at the hazardous chemical warehouses and connected them to
the incident emergency pools to ensure that no environmental pollution is caused in case
of chemical leakage.
1.3.3 Green Finance
In the financing field TCL TECH sticks to the principle of "sustainable green and
efficient" and promotes the implementation of green projects helping its member
companies and the upstream and downstream partners to improve the level of green
development. As early as 2018 TCL Financial issued the Notice of TCL Group Finance
on Green Loans" providing green credit funds to support of the development of Group's
green industries and companies.China's First "Green Carbon Chain Link" Business
On November 11st 2021 TCL TECH successfully launched China's first "Green Carbon
Chain Link" business. This is the first supply chain discount note based on the Guidelines
for Green Supply Chain Financial Services in the Guangdong-Hong Kong-Macao Greater
Bay Area - Low-Carbon Rating System (hereinafter referred to as the Low-Carbon Rating
System). The higher the low-carbon rating is the lower the corporate financing cost."Green Carbon Chain Link" is an innovative financing business based on innovative
payment tools which not only saves more financial costs for enterprises but also
encourages enterprises to speed up the energy-saving and emission-reduction
transformation.For this "Green Carbon Chain Link" business Maojia Technology the core enterprise
issued two supply chain notes with denominations of 1.02 million RMB and 2.47 million
RMB to two suppliers Shenzhen CSOT and Pu'an Electronics. With supply chain notes
36as the carrier and the Low-Carbon Rating System as basis pricing through differentiated
preferential interest rates is expected to save more than 28% of financing costs for the
first batch of companies.The launch of the "Green Carbon Chain Link" business is another successful exploration
of the green supply chain financial innovation model to help small and micro enterprises
develop. We have high expectation for this model to promote the development of green
finance and serve the real economy.- A leader of Huizhou Financial Bureau
Through a market-based model this business combines green finance and supply chain
finance and integrates the establishment and use of carbon accounts. That’s how the
'green carbon chain link' comes into being the first time ever in China."
- A leader of Huizhou Central Sub-branch of the People's Bank of China
"Relying on the carbon emissions per unit it helps quantify the carbon emission of
suppliers in the production phase and efficiently assist financial institutions in reviewing
corporate environmental management. This is another bold innovation in the field of
green finance."
- A leader of Guangzhou Carbon Emissions Exchange
1.4. Green Culture
1.4.1. Green Office
TCL TECH attaches great importance to the environmental impact at the operational
level and actively responds to government call for energy conservation and emission
reduction. Internally the Company promotes green office and manage from aspects of
energy carbon emissions and resource. In addition TCL TECH gradually complete the
environmental management system within the company to create green office working
atmosphere.Key Performance and Awards
In 2021 TCL CSOT won Shenzhen Top 10 Green and Low-Carbon Enterprises Award
and the Sustainable Development Award.
371.4.2. Raise Environmental Awareness
In 2021 TCL TECH subsidiaries continued to raise employees’ awareness and
professional capacity on environmental protection and organized various environmental
protection trainings knowledge and experience sharing and theme activities. In 2021
TCL TECH subsidiaries conducted a total of 80 environmental trainings.Promotion of "Energy Saving and Carbon Reduction" to All TCLers
On December 2nd 2021 TCL TECH launched the Initiative for All Employees to
Promote Energy Conservation and Carbon Reduction and Maintain the Spirit of Hard
Working aiming to call on all employees to follow the concept of green office
implement "the extreme cost efficient" philosophy and embrace the spirit of hard
working. The Group has cultivated strong atmosphere of energy saving and carbon
reduction for all employees to support environmental protection and build a green
homeland together.
38World Environment Day - "Everyone to Protect Environmental to Make CSOT
More Beautiful"
On the June 5th World Environment Day in 2021 TCL CSOT carried out
environmental protection education & interactive activities. The theme of the day is
"Everyone to Protect Environmental to Make CSOT More Beautiful " the activities
such as broadcasting of environmental documentaries interactive garbage sorting
games resource recycling demonstration and lecture on sewage purification. By
organizing such educational activities all related companies learnt from these
examples and lessons conducted self examination to “improve from experience”. In
addition through interactive activities such as resource utilization demonstrations
lecture on sewage purification and employee garbage sorting TCL CSOT further
encourages employees to be low carbon pioneers in their daily life.Enhance Low-Carbon Awareness Among All Employees to Contribute to
"Carbon Peaking and Carbon Neutrality Goal"
In August 2021 Shenzhen CSOT organized a Month of Low-Carbon and Energy-
Saving campaign with the theme of "energy saving and consumption reduction starting
from me for a greener circular economy" and carried out a total of 12 activities from
the publicity and promotion and energy-saving ideas to energy-saving awareness
enhancement and outstanding energy-saving awarding. Theses activities increase the
responsiveness and motivation of all departments to practice energy efficiency to
further enhance the awareness of green low-carbon and environmental friendly of all
employees. In addition TCL CSOT also carried out the "carbon peaking and carbonneutrality” theme education to all employees via Starway Academy online training
platform to raise employees’ awareness of environmental protection and low carbon
practice.
39402. Society: Shoulder Responsibility for Continuous Value
Creation
TCL TECH actively shoulder its social responsibility and create social value while
developing its business steadily. TCL TECH breakths rough technology bottlenecks
based on technology development and innovation enabling the industry to increase
quality and efficiency. The Company improves product quality and customer experience
through excellence in attitude and craftsmanship. The Company builds a win-win value
chain ecosystem through total supply chain management and collaboration with
stakeholders. Through the establishment of comprehensive employee rights protection
mechanism and employee development and training mechanism we build a diversified
and friendly workplace and grows together with employees. In addition TCL TECH helps
achieve common prosperity and rural revitalization with continuous community
investment and carrys out various public welfare projects making unremitting efforts to
build a better society.
2.1. Continuous Innovation to Lead Technology
Transformation
Technology innovation is viewed as the core driving force for TCL TECH to achieve
sustainable development and realize strategic goals and is deeply embedded in the
Company's blood and genes. TCL TECH spends great efforts in technology innovation
product governance and services increases R&D investment builds a strict and
meticulous management framework on quality and safety and continuously improves
customer service to maintain the leading and competitive position in the industry.
2.1.1. Research and Innovation
In 2021 TCL TECH invested 8.77 billion RMB in R&D and have 10517 R&D technicians.TCL CSOT has obtained a total of 11033 Chinese authorized patents including 10081
invention patents 865 utility model patents 87 design patents and a total of 5628
foreign authorized patents. In addition TCL TECH also actively participates in the
formulation of industry standards join industry development alliances host and
participate in the formulation of international standards national standards and industry
standards. In 2021 the Ministry of Science and Technology approved TCL TECH to set
up the National Center of Technology Innovation for Display which is the only national
innovation center in the display field.National Center of Technology Innovation for Display
On March 8th 2021 the National Center of Technology Innovation for Display led by
Guangdong Juhua New Display Research Institute was approved by the Ministry of
Science and Technology as China’s only national center of technology innovation for
display. The main task of the Center is to make breakthroughs in major key universal
41technologies such as new display materials processes devices and equipment and to
lead the development of new display technologies and promote the upgrading of
China's new display industry. The Center will help China realize the transformation of
display technology from following to originality and then to leadership realizing the
transformation from survival to innovation-driven from single product development to
collaborative innovation across the whole industry chain assisting TCL TECH’s
innovation and the rapid development of Chinese economy.TCL Zhonghuan
By December 31st 2021 TCL Zhonghuan has 1 national technology center 6
provincial-level and ministerial-level R&D centers and 2 provincial-level and
ministerial-level key laboratories. The company has accumulated 975 authorized
intellectual property rights.
2.1.2. Talents for Cooperation
TCL TECH understands that outstanding talents are the foundation of technology
development and innovation. TCL TECH continuously attract industry-leading talents to
build a cutting-edge R&D team. In addition TCL TECH builds an open and cooperative
R&D mechanism to inject vitality into Group's R&D system.TCL Zhonghuan University-Industry Collaboration
TCL Zhonghuan and Shandong University carries out a university-industry collaboration
on the process optimization of "G12 large silicon wafer". Through joint development of
simulation and laboratory the company verifies the simulation results. Based on the field
test results the selection of parameters is optimized immediately to realize process
optimization.TCL Zhonghuan also cooperates with Hebei University of Technology on the R&D
research on silicon crystal growth technology with special focus on crystal growth single
crystal defects silicon wafer polishing and silicon wafer inspection technology.
2.1.3. Innovative Products and Application
TCL TECH aims to develop brand new technology and research layout as the ongoing
innovative practices. The research and technology innovation has gradually covered from
the product technology to the upstream material. TCL makes a number of breakthrough
42technologies and unleashes great potentials for social development and technological
innovation.* Technology Innovation
NTSC 110% Ultra-High Color Gamut LCD Display Technology
TCL CSOT launched the self-developed NTSC 110% ultra-high color gamut LCD display
technology which can effectively improve the product color gamut achieve purer and
brighter color and bring users with more realistic picture quality experience. Based on
the existing backlighting by changing the structure of the LED phosphor substance R&D
technicians explored ways to shift the green band peaks in the backlight spectrum
towards shorter wavelengths to specific wavelength positions. Meanwhile the
technicians adjusted the pigment ratio in the photoresist component of the colour film to
increase the colour concentration which facilitated photoresist film thickness reduction
and improves manufacturability to make sure that the green photoresist transmission
spectrum peaks match the backlight green band peaks. Then the technicians adjusted
the white screen chroma through optimised panel design. Finally after repeated
experiments and verification TCL CSOT succeeded in developing an ultra-high colour
gamut panel with 110% NTSC.This is an important achievement of TCL CSOT in high color gamut technology which
shows TCL CSOT's pursuit of color enhancement of LCD mobile phone displays and its
industry-leading advancement in high color gamut technology.Full-Color Large-Area Quantum Dots (Qds) Patterned Color Filters and High-
Performance QLED Devices
The new selective electrodeposition technology developed by the New Material
Development Team of TCL CSOT Display Technology Innovation Center has realized the
preparation of full-color large-area quantum dots (QDs) patterned color filters and high-
performance QLED devices that are greater than 1000PPI.
43The research team developed a novel QD-selective electrodeposition (SEPD) patterning
technique using high-resolution photolithographic microelectrode technology combined
with mild electrodeposition technology to achieve efficient uniform and large-area full-
color QD patterning on a single electrode film preparation. Further the research team
integrated quantum dots (QDs) with different emission properties into large-area arrays to
form full-color pixels and fabricated high-performance QLED electroluminescent devices.The related patterned films can simultaneously meet the requirements of color
conversion layers of liquid crystal displays (LCD) Bhue OLED displays and Bluemicm-
LED displays of different sizes as well as QLED self-emissive displays. They are suitable
for low resolution medium resolution and high resolution displays at the same time and
the related technology has great application prospects in the fields of photovoltaic
devices and quantum dots detectors.This research result is another achievement of TCL CSOT's continuous exploration and
cooperation in the field of cutting-edge technology. Meanwhile the significant
improvement of film unevenness and coffeering effect by selective electrodeposition is
also a powerful supplement to inkjet printing technology.* Innovative Product
The World's First 125-Inch Glass-Based Transparent Direct-Display MLED
This is the world's first glass-based super-large transparent Mini LED display product
independently developed by TCL CSOT. This product perfectly combines glass-based
active drive and Mini LED technology and creats a "new specy" in the display field
providing a new scene-based transparent solution and bringing infinite imagination of
transparent display.The World's First 65-Inch 8K Inkjet Printing OLED
The world's first 65-inch 8K inkjet printing OLED developed by TCL CSOT is the world's
largest OLED product based on printing technology. This 8K product has up to 33
million pixels which can bring clearer and finer pictures. The product adopts oxide TFT
backplane driver top emission device structure extreme color performance and
million-level contrast ratio which brings unparalleled eye-catching picture quality.
44The World's First 8-Inch 360° Folding AMOLED with Extremely Small Folding
Radius
This 360° foldable product integrates the in-fold and outward-fold flexible screen
technology and the leading technology of 360° Stress free self-compensating hinges. It
uses Pol-less module thinning technology to achieve stepless switching between
inward folding R1.5 and outward folding R6.This product can be used as a small-sized smartphone when it is folded out to grasp
dynamic information and meet users’ everyday entertainment needs. When folded in
it’s very compact and easy to carry. With a built-in pen it can be used for business
scenarios such as handwriting drawing etc.The product has passed the test of 200000 times of bending. It can not only provide
high-quality 360° bending-resistant flexible screen modules but also provide an
integrated solution of flexible screen and self-compensating hinge offering users a
variety of choices.
4549-Inch R800 5000+ Zones MLED Display Module of The World's Highest Zone
This is the world's first 49-inch R800 curved gaming display and also the curved
gaming display with world's highest zone. This product equipped with TCL CSOT high-
performance HVA display has the highest specification technology combination in the
MNT industry. It combines three technical specifications that are currently the highest
standards in the industry the R800 ultra bend rate 32:9 ultra wide ratio and 5000+
ultra high zone. Moreover it also meets top parameters such as 240Hz high refresh
HDR1400 Free Sync borderless on three sides and 5K high resolution.
14-inch Yunsheng Inkjet Printing OLED
The product adopts the self-luminous high-precision inkjet printing process technology
with bright colors and a contrast ratio of millions. Compared with the evaporation
process there is no need to use a fine metal mask and the material utilization rate can
be as high as 90% which is more conducive to large-scale mass production. In
addition the product adopts ultra-thin high-strength long-life flexible module material.The curling radius is less than R20mm and the curling life is up to 100000 times under
high temperature and high humidity conditions. Combined with the built-in AI
compensation algorithm the OLED brightness chromaticity uniformity picture quality
and display effect are greatly improved.
4613.3-Inch Mini-LED Flat Panel Display
TCL 13.3-inch Mini-LED flat panel display features high contrast high color gamut and
high brightness. It adopts technologies such as Mini-LED and Local Dimming to
achieve million-level ultra-high contrast 100% NTSC ultra-high color gamut HDR1000
2mm ultra-thin body and 2mm ultra-narrow bezel.
10.95-Inch Low Blue Light LCD Display
This product is the world's first 120Hz incell product and also the world's first low blue
light LCD flat panel display. Under the WQXGA resolution TCL CSOT took the lead in
using Incell technology on LTPS LCD products reducing the thickness of the screen
and reducing users’ sense of discomfort during long-term use.
6.3-Inch UWFR 1-120Hz Ultra Wide Frame Rate
This product adopts Ultra Wide Frame Rate (UWFR) technology which is the world's
first 1-120Hz ultra wide frame rate display. The low frequency of 1Hz provides low
display power consumption and the high frequency of 120Hz increases the display
fluency and provides an excellent visual experience.
476.3 Inch Super Full Display
This product is the world's first super full screen. On the basis of the ordinary full
display the lower frame is reduced to only 2.4 mm a great leap that drives the industry.
10-Inch Z1 Bi-Folding Product
TCL CSOT applied its self-developed flexible module stack to the 10-inch Z1 bi-folding
product. Different from the conventional one-way folding screen this product adopts
the Z-shaped bi-folding form for the first time which meets the diverse scenario
settings in combination of mobile phone and Pad.
6.67-Inch Quad-Curved OLED Screen
48The 6.67-inch quad-curved OLED screen from TCL CSOT is the first on-cell quad-
curved screen in China. Through the four-sided arc design it not only provides smooth
“hand feel” but also ensures the high image impact of the ultra-narrow bezel from the
front viewing perspective.
5.5-Inch In-Screen Fingerprint Phone Screen
Different from the single-point fingerprint recognition and unlocking technology TCL
CSOT's 5.5-inch in-screen fingerprint mobile phone screen integrates the optical path
system and the fingerprint sensor into the display panel process to achieve full-screen
area fingerprint unlocking. The product also has a full-screen multi-point fingerprint
recognition function providing a variety of usages.
492.2. Pursuit of Excellence to Ensure Product Quality
In 2021 bearing the spirit of chasing excellence TCL TECH continued to improve the
quality management of the whole value chain. The Company provides customers with
better products services and experience through continuous practice and innovation in
safety technology quality management customer service longing for better customer
satisfaction.
2.2.1. Quality Management System
Excellent quality demonstrates TCL TECH’s responsibility and core competitive
advantage of as the industry leader. TCL TECH and its subsidiaries highly stick to quality
management and establish systematic quality management system based on ISO9001
QC080000 and ISO/IEC17025 system. The Company also formulate internal
management mechanism such as Quality Management Internal Control Regulations and
Defective Product Recall Management Regulations and strictly follow European Union
(EU) RoHS Directive EU REACH China RoHS Directive and IEC62368 standards for
product quality management.TCL CSOT has formulated a series of internal quality systems including customer
management manufacturing quality management etc. and regularly inspects and
evaluates these systems. Moreover TCL CSOT establishes the quality management
committee and designates the Chief Quality Officer and Quality Authorized Responsibles
at the decision-making level to formulate and promote quality strategic planning so as to
continuously improve product quality. In addition the company actively absorbs
comments and recommendations from relevant stakeholders and regularly upgrade the
quality management system.TCL CDOT regularly improves the preventive quality system builds a customer-oriented
quality culture and formulate project quality plans based on customer needs. TCL CDOT
analyzes the reasons causing quality problem from dimensions of R&D and technology
and monitor indicators tripartite benchmarking review quality issues and other methods
to ensure stable product quality.Referring to international leading quality management philosophy TCL Zhonghuan
upgraded more than 10 standards in 2021 and carried out a multi-dimensional quality
management competitiveness analysis to explore the quality system supply chain quality
process quality customer service quality and reliability monitoring opportunities for
improvement. On this basis TCL Zhonghuan establishes and implements strict product
standard management process thereby ensuring the continuous improvement and
upgrading of product standards timely synchronization of cutting-edge technologyl and
customer needs and improving product quality and process control.
502.2.2. Quality Management Training
In 2021 TCL CSOT further enhanced quality management in various ways and carried
out a total of 48 relevant trainings including quality tool trainings such as DOE and MSA
quality-related process training quality awareness training etc. to create a culture of
quality within the company.TCL CSOT Quality Promotion Month Activities
In order to increase the awareness of "quality first" TCL CSOT carries out promotional
activities on the theme of quality forming an atmosphere of "everyone attaches
importance to high quality everyone creates high quality and everyone enjoys high
quality". The purpose of this activity is to shape quality awareness among all
employees broaden the coverage of quality knowledge and increase the coverage of
participants. The activity takes quality knowledge quiz as the main format and
increases employees' sense of participation and enthusiasm through signatures on
quality banner so that TCL CSOT's quality goals and quality service concepts are
rooted in the hearts of every employee.
51Relying on advanced technology platforms TCL TECH actively promotes the
development and manufacturing of intelligent technologies pushes forward the intelligent
transformation along value chain and continuously introduces quality improvement tools
to promote safe green efficient and intelligent production.Suzhou CSOT Intelligent Manufacturing
52Suzhou CSOT Intelligent Manufacturing successfully applied for multiple
demonstrations as intelligent workshops and factories
TCL CSOT is keen on promoting the transformation and upgrading of intelligent
manufacturing. Relying on its own platform advantages the company optimizes
production lines and builds smart and efficient intelligent factories. In 2021 TCL CSOT
launched the smart energy system which operate stably and is gradually introduced to
Suzhou CSOT Wuhan CSOT and new factories to monitor and collect data of water
electricity and gas in real time. Through the extraction of massive data and mining the
value of data the real-time monitoring of equipment status energy status and product
status is fully implemented in the production line. By importing in-depth learning
algorithms equipment and process parameters are used to realize fault prediction and
thus effectively improve processing efficiency.In addition TCL CSOT cooperated with Gechuang Dongzhi and TCL Industrial Research
Institute on the automatic data capture (ADC) technology to realize the intelligent
detection of display while independently cultivate the visual detection algorithm to meet
the needs of the factory. By continuously optimizing and improving the analytical
modelling systems such as FDC effective yield management multi-factor analysis the
real-time monitoring and early warning of machine equipment and quality conditions and
rapid locking of abnormal concentration can be realized. Moreover TCL CSOT
introduced a comprehensive AI automatic diagnosis system to realize AI self-perception
self-learning self-decision and self-execution and introduced real-time scheduling to
realize automatic and real-time scheduling of production lines which improves production
efficiency while reducing costs.In 2021 TCL CSOT cultivated more than 130 digital talents and initially completed the
development of the digital talent capability model and evaluation system as well as the
digital talent training and evaluation mechanism. The intelligent manufacturing project
53was promoted throughout the whole year and it is expected to achieve a benefit of over
100 million RMB.
In the era of Industry 4.0 TCL Zhonghuan continuously integrates digitalization
automation and intelligence to improve the "set-up" and "Deep Blue AI" learning model of
the wafer manufacturing process and comprehensively enhances flexible manufacturing
capabilities to realize manufacturing transformation. With the implementation of the
company's intelligent manufacturing and continuous improvement of excellence and
flexible manufacturing labor productivity has been significantly increased and factory
operating costs have been reduced while product quality and consistency have been
enhanced and comprehensive utilization of resources has been effectively improved.In 2021 bearing the concept of new generation smart chemical factory design TCL
Zhonghuan kicked-off the high-efficiency solar ultra-thin silicon single-chip smart factory
project of Tianjin Huan’ou New Energy Technology and to build the G12 factory.Meanwhile in order to match the crystal production capacity the company has launched
a smart factory project with an annual output of 25 GW of high-efficiency solar ultra-thin
silicon single crystal wafers (referred to as "DW Phase III") and a smart factory project
with an annual output of 30 GW of high-purity solar ultra-thin silicon single crystal
materials (referred to as "DW Phase IV") construction. All projects are designed as
Industry 4.0 Smart Factories accelerating the mass production and large-scale
application of the company's G12 monocrystalline silicon products to empower the
industry as well as drive the mutual development with upstream and downstream
partners.In addition TCL Zhonghuan designed a new production site according to the Industry 4.0
system. The new site is based on "Deep Blue" intelligent manufacturing model and will be
an intelligent manufacturing role model for the industry. In 2021 the silicon wafer factory
was rated as an Industrial Internet of Things benchmark factory project and the 3 GW
high-efficiency shingled solar cell module smart factory invested and constructed by
Huansheng New Energy was rated as the intelligent manufacturing demonstration factory
project.
2.2.3. Product Safety
Product safety is the most fundamental requirement of customers for TCL TECH's brand
technology and service and is also the Company's responsibility to the public. TCL TECH
and its subsidiaries strictly abide by relevant laws and regulations and maintain 100%
product testing rate to ensure that products meet safety requirements. Moreover CB
scheme UL standard and other international safety certifications have been acquired and
corresponding product safety incident management mechanisms have been formulated
to strictly stick to product safety.TCL CSOT adheres to the concept of "people-oriented health and safety first". The
company issues the Chemical Safety Management Specification and strictly follows the
54requirements of European Union (EU) RoHS Directive EU REACH China RoHS
Directive and major clients. Management system on toxic and hazardous substances has
been established and is applicable for project development material use and final
product. TCL CSOT establishes the management system for toxic and hazardous
substances according to IECQ QC080000 to ensure products and materials can meet
clients’ environmental requirements. Products of TCL CSOT will undergo a series of
testings including environmental testing reliability testing electrostatic testing constant
temperature and humidity testing etc.
2.2.4. Customer Service
Adhere to the service principle of "the highest requirements of customers are our lowest
standards" and the concept of “customer first” TCL TECH takes customer needs as the
main driving force and establishes a comprehensive customer service system. The
Company sets up a complete customer service and communication mechanism
according to ISO9001 and IATF16949 standard and enhance understanding of customer
requirements through customer satisfaction surveys product and project promotion
meetings telephone communication and customer visits so as to provide better service
and experience for customers and continuously improve customer satisfaction.TCL CDOT “2485” Timely Response Mechanism
Customer quality service management of TCL CDOT puts customer satisfaction as the
core and forms a "2485 timely response mechanism". In 2021 TCL CDOT 100%
implemented the 2485 timely response mechanism to address customer complaints
and for the first time arranged engineers work on site at the Samsung factory in
Vietnam to improve service efficiency and quality.TCL Zhonghuan Customer ServiceBearing the corporate strategy of “Global leading for new energy photovoltaicmaterials and global catch-up and domestic leading for semiconductor materials” TCL
Zhonghuan established a Customer Quality Center in 2021 to provide intensive quality
management in different product lifecycles. Focusing on "Customer Quality Service"
and "Product Standards Management" the company endeavors balance the internal
and external quality and the manufacturing so as to improve product quality enhance
customer response and customer service quality and improve customer experience.TCL TECH continues to optimize customer complaint management process and is
committed to creating the ultimate response time. By connecting with all subsidiaries and
departments and clearly defining the nature positioning and responsibility of the problem
the Company can efficiently address customer complaints. As the Company's business
keeps on expanding to further improve customer satisfaction in 2022 TCL TECH is
expected to include NB customer function to improve the timeliness of customer service.Meanwhile the Company plans to set up a comprehensive customer satisfaction
55improvement project to upgrade the quality of customer service in all aspects including
quality service delivery technology and cost.
2.3. Inclusion and Co-Creation for Shared Value
Suppliers are the crucial foundation of TCL TECH’s manufacturing and innovation. TCL
TECH is highly concerned about the social responsibility of suppliers conflict minerals
management and collaborative development of the industrial chain. Through continuous
improvement of supply chain management collaborative innovation with suppliers
advocating and driving supply chain partners to actively fulfill their responsibilities TCL
TECH is dedicated to improving the environmental social and governance management
of suppliers meeting product and service sustainability requirements and building a
harmonious industrial ecosystem so as to promote the healthy and sustainable
development of the industrial chain.
2.3.1. Supply Chain Management
TCL TECH follows high standards of supplier management system establishes the
supplier certification process and issues supplier performance assessment guidance
based on TCL Supplier Code of Conduct. Based on supplier management on human
rights labor relations occupational health and safety business ethics environmental
protection and social responsibility TCL TECH has developed a comprehensive set of
supplier screening access evaluation and rectification mechanism and signed
Procurement Agreement Environmental Protection Agreement and Related Party
Commitment with suppliers to regulate their behavior. Moreover TCL TECH released
New Supplier Development and Introduction Management Procedures which stipulates
that new suppliers must be subject to materials check and on-site audit and sample and
small batch be verified before trial further raising the threshold of supplier entry.Besides TCL TECH updates the Group's regulations on responsible procurement
practice in a timely manner and establishes a professional training system. The Company
has also developed Four Steps and Fourteen Sessions on Supplier Introduction
Certification Trainings and ariba Supplier Management System Operation Training
system to provide standard documents on supplier introduction and related operating
systems and regularly check supplier performance through questionnaires and audits. To
manage suppliers in a holistic manner TCL TECH's subsidiaries rely on external
platforms such as Institute of Public & Environmental Affairs (IPE) to monitor supplier
environmental performance.TCL Zhonghuan Supplier Management
In order to ensure the sustainable and healthy development of business partners and to
build mutual cooperation relationships on the basis of trust honesty frankness and
56integrity the company has formulated Supplier Management System Supplier Audit
Management System and Zhonghuan Semiconductor Partner Code of Conduct to
regulate the management and process of supplier introduction audit quality
management and promotion and to establish compliance standards and ethical
requirements in line with business. The Strategy Department Procurement Department
and production sites have a clear division of tasks and are jointly involved in supplier
management and audit.As for supplier audit while focusing on suppliers’ economic performance in terms of
quality on-time delivery and cost advantage the company also pays attention to
suppliers’ performance regarding environment and employee safety. For new suppliers
the company will check suppliers' environmental management and occupational safety
system certification such as ISO14000 and OHSAS18000 as well as the management
of hazardous substances. For existing suppliers the company conducts annual supplier
audit and special quality audits. If a supplier is found to fail to comply with the
environmental requirements or violates the company's requirements in terms of labour
relations and reputation during the audit process or business operation the company will
urge them to rectify. If the supplier fails to meet the company's management
requirements within the rectification period the company will start the procedure of
dissolving the partnership.In 2021 the company conducted on-site audits of 30 qualified suppliers including the
suppliers' compliance with relevant environmental labour and ethical laws and
regulations quality management systems management of toxic and hazardous
substances etc. No serious violations or breaches of code of conduct were found.
2.3.2. Conflict Materials Management
TCL TECH pays particular attention to the issue of conflict minerals and strictly abides by
Statement on Non-Use of Conflict Minerals. The Company’s major subsidiaries have
formulated conflict minerals procurement management processes with reference to
OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict
Affected Areas and High Risk Areas and customer requirements makes public statement
that no procurement nor use of any conflict minerals from areas that directly or indirectly
finance or support armed conflict and conduct due diligence on the potential use of
conflict minerals in their supply chains by RMI-CMRT and CRT questionnaires.TCL COST Strictly Promotes Conflict Minerals Supplier Management
TCL CSOT formulates its conflict minerals procurement management policy and process
with reference to the OECD Due Diligence Guidance for Responsible Supply Chains of
Minerals from Conflict Affected and High Risk Areas and clients requirements and keeps
close eye on the Responsible Business Alliance (RBA) requirements on conflict minerals
for information sharing with suppliers.Every half year TCL CSOT conducts due diligence on the use of 3TG and cobalt in its
supply chain with reference to RMI-CMRT and CRT questionnaires. In 2021 the
company increases its management of mica and discloses the supply chain due diligence
results to its clients. By the end of 2021 raw materials of tin tantalum gold tungsten
cobalt and mica are 100% conflict free.
572.3.3. Joint Development with Industry Partners
TCL TECH bears open mind to drive industrial chain development. The Company
attaches great importance to synergy and innovation with partners and provides
financing platformand learning and exchange platform for industrial chain partners to
strengthen communication and exchange among all industrial partners. In terms of
promoting industrial chain communication TCL TECH redesigned the ariba supplier
introduction system to manage supplier fundamental information and qualification. The
Company also creates positions on SM supplier relationship development and
management as well as CM category management within the company issues CM
instructionz and SM instructions to lay solid foundation for supplier development and
synergy.TCL TECH Launches "Rising Sun Plan" for Win-Win Development
TCL TECH joins hands with a number of enterprises at home and abroad to build joint
laboratories for innovation-driven development so as to enhance core corporate
competitiveness and achieve transformation and upgrading while establishing
strategic partnerships with upstream and downstream partners for win-win
development. At the 2021 TCL Global Ecosystem Partner Conference TCL TECH
announced the launch of the "Rising Sun Plan" which plans to invest no less than 20
billion RMB in the next five years. The plan is to build an industrial ecology with global
partners through participation in industry standards open technology and data
platforms joint R&D and industrial investment in the three core industries of TCL
TECH so as to jointly promote the innovation and upgrading of key industries of
intelligent manufacturing industrial internet of thinngs and semiconductor materials.
58TCL CSOT Releases "Star Wing Plan" to Build Symbiotic and Win-Win System
The "Star Wing Project" is an important step in TCL CSOT strategy of open and
innovation win-win cooperation and eco-system synergy as well as an important
initiative for the company to lead the innovative development of displays. TCL CSOT
continues to cooperate with upstream suppliers on the technological development of
new equipment and technologies and to develop new applications and new fields in
collaboration with end customers in order to create a win-win situation with
ecosystem partners. The company will initiate diverse industrial layout build a global
win-win ecosystem and help the development of the global display industry through
the upgrading of display technology diversified product structure production line
capacity expansion and the overall promotion and application of digital
transformation.
592.4. Cordial Worksplace Environment to Grow with Employees
Adhering to the talent concept of "people first for global leadship" TCL TECH makes
continuous efforts in the protection of employees rights occupational health and safety
employee growth and development employer attractiveness and employee care and
endeavors to build inclusive and diverse culture at workplace. The company has
established a comprehensive training and career development system ensure employee
safety and organises a wide range of employee activities to enhance employee
satisfaction and happiness.
2.4.1. Protection of Employee Rights
TCL TECH effectively protects employee rights and interests through sound employee
communication channels comprehensive remuneration and benefits system and
proactive employee care system.* Fundamental Rights
TCL TECH strictly complies with the Labour Law the Labour Contract Law the Social
Insurance Law the Law on Mediation and Arbitration of Labour Disputes and the Trade
Union Law of the People's Republic of China and the International Labour Organization
Convention and other relevant regulations follows industry standards and corporate
social responsibility guidelines to guarantee employees’ fundamental rights and interests.In 2021 the labour contract coverage is 100% and the full-time employee social security
is 100% covered
The Company adopts a zero-tolerance attitude towards infringement of employees' legal
rights and has established regulations such as the Regulations on the Prohibition of
Forced Labour the Code of Code for Underage Employment the Management System
for the Recruitment of Skilled Personnel and the Labour Management Manual which
clearly stipulate the prohibition of child labour human trafficking and forced labour in
accordance with RBA standards.Indicator Data
No. of domestic employees 56222
No. of overseas employees 8937
Social insurance coverage 100%
* Employee Communication
TCL TECH has established a comprehensive communication mechanism to ensure that
employees' opinions and suggestions are effectively communicated through a diverse
range of channels.As an important channel to ensure communication between management and employees
60TCL TECH's trade union proactively organise various activities including organisation
building employee stability and rights maintenance employee activities and employee
care which effectively safeguard the rights and interests of employees. 2021 saw a 90%
membership rate of trade union. The Group and its subsidiaries conduct employee
satisfaction survey and organize employee representative consultation irregularly each
year to discuss and decide on employee-related rules and regulations and ensure that
employees' needs are actually met. In addition TCL TECH continues to improve internal
communication channels through frontline visits employee communication meetings and
employee suggestion boxes.* Employer Attractiveness
TCL TECH continuously upgrades its remuneration and benefit system fully respects
employees' payment and provides employees with competitive compensation from the
market.TCL Listed on Forbes World's Best Employers 2021
? Remuneration System
TCL TECH follows the management principle of "fixing grade by post fixing salary by
grade and rewarding by performance" sticks to the concept of "favor contributors more
rewarding for more contribution and encouraging the pioneer" and thus establishes the
remuneration system of salary package and bonus package linking personal bonus with
company performance and key corporate financial performance so as to drive human
performance improvement and support corporate transformation.TCL TECH participates in the annual market compensation survey by top global HR
agency to ensure that compensation packages reflect company's positioning and is
ahead of market average. The Company makes annual compensation adjustment with
reference to GDP growth CPI increases and company performance increase.? Incentive Mechanism
A reasonable remuneration and incentive system is an important prerequisite for
employee creativity. TCL TECH adheres to market-based incentive mechanism and
61implements a benefit-sharing model for senior management and core employees to
encourage senior and middle management and core employees to "share the same
destiny" with the company. The company follows the talent concept of "global leading by
first-class talent" and inspires innovation and motivation among employees to help
achieve corporate vision and strategic goals.TCL TECH has developed differentiated assessment and incentive mechanisms for
different companies and personnels and established a dynamic and diversified
performance assessment system. The company conducts multi-level assessment based
on job responsibilities and employees' key results and performance selects annual
outstanding employees by different ratings adopts long-term incentives and provides
abundant opportunities such as promotion salary adjustment training etc.Employee Performance Management
TCL TECH's employee performance review is mainly based on the key results and
performance of employees' responsibilities and requirements which is divided into five
levels as of S A B C and D and the assessment result is directly linked to employee
incentives. Employees with S and A performance are eligible for selection of TCL
annual excellent employee and are also eligible for priority position promotion salary
adjustment and participation in the company's long-term incentive plan. Moreover they
will be given priority training opportunities as outstanding talents and future potentials.TCL Zhonghuan 2021 Employee Share Ownership Plan
In June 2021 the company formulated and adopted the 2021 Employee Share
Ownership Plan (Draft) describing that the amount of the special incentive fund for the
2021 Plan shall not exceed 324.12 million RMB and the maximum number of
underlying shares that can be purchased and held shall be approximately 10668900
shares representing approximately 0.35% of the total current share capital of the
Company. The total number of employees participating in this Plan shall not exceed
815 among whom 11 are board members supervisors and senior management and
employees are no more than 804.In addition TCL TECH offers inclusive financing to its employees. Employees can apply
for credit loans through Huizhou Zhongkai TCL Smart Technology Microfinance. For TCL
TECH employees the loans are lended in a very short time with higher loan limits and
lower interest and professional financial advisors are offered. In 2021 TCL TECH has
provided cumulative employee loans amounting to approximately 612 million RMB
serving 1727 employees. TCL CSOT issued cumulative employee loans amounting to
300 million RMB sparing employees from urgency.
TCL “Employee Loan” to Support Employees in Need
For Wang Kunhu (pseudonym) fate was full of unknown twists and turns. In 2020 the
25-year-old young man and a production line employee at TCL got the message that
his father was unfortunately diagnosed with T-cell lymphoma and was in urgent need of
chemotherapy which was expected to cost 400000 RMB. At this critical moment a
62colleague recommended Wang to try company’s “employee loan”. After connecting with
customer service Wang Kunhu soon received a call back from Mr. Lai TCL Employee
Loan Account Manager. With the help of Mr. Lai Wang received his first 100000 RMB
of employee loan within 2 hours. "The moment I got the money the world lit up." The
TCL employee loan was like the warm sunshine of spring that lighting up his family and
igniting the sparks of hope.? Care to Overseas Employees
Taking the advantages of globalisation TCL TECH continues to expand its overseas
business. As a result the number of overseas companies and factories continues to grow
as is the sharp increase in the number of overseas employees. The company attaches
great importance to the overseas employee rights and well-being. In addition to offering
competitive compensation the Company also provides diversified benefits and welfare
organizes various trainings and art and sports activities to enhance employees’ sense of
belongings and attract global outstanding talents.
2.4.2. Employee Diversity and Equal Opportunities
TCL TECH adheres to the equal and non-discriminatory employment policy and
formulates a labour handbook to guarantee the equal inclusive and diverse culture of
workplace. The Company will not treat employees differently based upon gender age
race religious beliefs and disabilities. TCL TECH respects individual differences
embraces diversity and provides equal employment and fair development opportunities
to all employees.Indicator Performance
Ratio of female employees 27.22%
Number of the disabled 22
Number of minor groups 4779
Ratio of female in management and 31.3%
professional categories
63Ratio of female executives 22%
2.4.3. Occupational Health and Safety
TCL TECH adheres to the concept of "People First Safety First" and continues to
improve the management of employee health and safety ensuring a safe production
environment through various occupational health management mechanisms and
conducting a series of trainings to ensure employee health and safety. By the end of
2021 all TCL TECH major subsidiaries have obtained the upgraded ISO45001 certificate.
No safety accidents with serious injuries happened throughout the year.* Occupational Health Management
TCL TECH follows the Prevention and Control of Occupational Diseases Law of the
People's Republic of China and develops various occupational health management
systems to provide good working environment and occupational safety for its employees.Indicator Performance
Health check and health record coverage 100%
Number of occupational diseases 0
* Safety Production
Following national safety regulations such as the Production Safety Law and the Fire
Protection Law of the People’s Republic of China TCL TECH enhances the company's
production safety system in terms of management equipment and facilities employee
safety awareness etc.Indicator Unit Performance
ten
Safety production investment thousand 10674.85
RMB
2021 major safety incident number 0
Death on duty person 0
? Safety Production Management
To ensure the effective implementation of production safety management TCL TECH has
developed regulations such as the Code on Production Safety Management the Code on
Production Safety Performance Assessment and the Production Safety Incident
Emergency Response Plan. In terms of safety production management TCL TECH has
established a Safety Production Management Committee (Safety Committee) and a
Safety Production Management Committee Office (Safety Committee Office) to oversee
64the company's safety production management and control system.
TCL CSOT follows TCL TECH’s initiative pays particular attention on safety production
issues various safety management regulations and apply the Code on Safety Production
Performance Assessment to various factories and departments. In addition the company
incorporates safety management into the performance assessment of middle-level
management. The company sets up a two-way communication mechanism: clerks and
inspectors and the inspectors are responsible for regular inspection and implement
safety related issues to enhance safety awareness.TCL Zhonghuan combines various occupational health and safety production laws
regulations and standards and formulates its own safety management manual and
company management regulation. The company also set safety production objectives
monitors and measures the implementation of safety system to enable effective operation
and continuous improvement.? Safety Production Inspection
All TCL TECH subsidiaries have established a regular hidden danger inspection
management system. Every factory has designated safety management personnels at all
levels to conduct safety inspections in each area on a daily weekly monthly quarterly
and holiday basis and follow up on the rectification of potential safety hazards. Through
safety inspection and screening of safety risk points safety hazards can be prevented in
prior.In 2021 TCL CSOT accelerated the improvement on safety issues and carried out 48
inspections of various types. All factories are optimally divided into 1609 segments with
clear responsibility division as well as the 117 stairs. The company strengthens the
inspection of the weak segments and improves 123 segments with potential safety
hazards. In addition TCL CSOT carried out the management and control of electrical and
special gasification systems and organized special inspections of laboratories supports
and hangers gas packaging materials and sewage pools and the rectification rate of
defects reached 100%. In 2021 the coverage of potential safety hazards investigation
and rectification of TCL Zhonghuan is 100%.? Ensure Safety Production
TCL TECH subsidiaries continue to improve safety production measures optimize and
increase safety equipment and facilities in the workplace and carry out refined
management and control of safety production. All subsidiaries of TCL CSOT are
equipped with first-class safety equipment and facilities at home and abroad such as
automatic fire alarm system CO2 automatic fire extinguishing system VESDA system
TGMS system etc. and provide employees with safe and reliable personal protective
equipment. TCL CSOT uses HAZOP SFMEA and other risk identification and evaluation
tools to analyze the risks in the manufacturing process and formulates corresponding
management and control measures. Moreover it also actively carries out risk
visualization management formulates CSOT overall safety management improvement
65plan and comprehensively improves the safety management level from the five aspects
of man machine material method and environment.TCL Zhonghuan launched a safety production information management platform which
is divided into group regions sectors and company ports. It includes 10 management
modules 38 sub-modules and 80 specific work tasks and the six core functions include:
visualization of basic information for safety production; real-time plans and tasks delivery
and real-time traces of the whole process; professional risk identification and control
forming a risk database; hidden danger investigation and dynamic management and
control of special tasks; real-time collection of system safety information establishing a
big database; as well as expert team regular identification of safety production laws
regulations and standards setting up a safety think tank. These functions have solved
key and challenging problems such as real-time safety supervision of factories at many
places hidden danger data trends analysis etc.? Build Safety Production Culture
TCL TECH regards safety production promotion and education as the fundamental to
manage safety production and enhances employees' safety awareness through various
activities. In 2021 the Company led all subsidiaries and conducted 31 activities such as
safety month campaign and fire protection month campaign in various forms covering
29565 person times.
66In 2021 TCL CSOT carried out 27 safety trainings reaching a total of 230000 person-
times of which 7684 people in 10 batches of senior middle and frontline management
have passed the training. 9108 people have participated in the online training and the
return training rate is 97%. 248 professional and technical trainings and 198 safety
courses were organized.In 2021 TCL Zhonghuan successfully achieved various safety production goals. 11
production sites carried out a total of 709 safety trainings and 271 safety drills and the
employee participation rate reached 100%.
2.4.4. Employee Development
In order to continuously enhance the internal driving force on innovation and
development TCL TECH is dedicated to empowering employees providing training
opportunities equally to every employee to support build up their career path.* Talent Recruiting
TCL TECH believes that talent is the root of an enterprise. The Company has always
adhered to the talent concept of "people first for global leadship" continuously recruit and
gather global outstanding talents and increases investment in talents to build a pool full
of talents.? Campus Recruitment
Since its establishment TCL TECH has carried out large-scale campus recruitment for
25 consecutive years attracting more than 30000 outstanding university students. TCL
TECH attaches great importance to talent screening and talent trainings. Senior
management has attended campus career talks for many times introducing corporate
strength and future prospects. In 2021 the Company conducted campus career talks to
more than 20 cities across the country and opened more than 80 positions offering
nearly 2600 employment opportunities for universities across the country.
67TCL CSOT 2022 Campus Recruitment Offer Party
TCL CSOT 2nd Campus Recruitment R&D Vlog Competition
? School-Enterprise Cooperation
In addition to campus recruitment TCL TECH has established close ties with many
universities across the country to open up potential talent recruiting channels. Up to now
the Company has established TCL Creative Clubs at 9 universities across the country
providing a broad platform and opportunities for the all-round development of college
students by providing financial and program support.TCL CSOT Open Day Activity
In order to enhance professors’ and students' knowledge and recognition of Shenzhen
and TCL TCL CSOT organizes regular Open Day activities for universities every year
and invites professors and students to visit TCL CSOT at Open Day activities at winter
and summer vacations which is quite conducive to attract outstanding talents from
campas and pour vitality into the company.
68Professors and students invited to TCL CSOT Open Day
? Internal Reference
As a high-tech manufacturing enterprise diversified high-quality talents are the core
driving force for the company's sustainable development. TCL TECH highly encourages
all its employees to recommend outstanding talents to the Company and its subsidiaries.In 2021 the company further expanded the scope of internal references and raised the
rewarding standards. Attractive rewarding rules were set up for different positions of
different industries. The enthusiasm of outstanding talents references kept on rising and
thus attracting more outstanding talents for better company development.? Internal Human Resources Market
TCL TECH believes that talents are the common resources of the Group and the
Company encourages the best talents to serve where it needs them most. In order to
stimulate corporate vitality and expand employee career channels for the best use of
talents TCL TECH has established an internal talent market and related mechanisms.Since TCL TECH issued the TCL Internal Human Resources Market Management in
2019 the Company continued to refine the rules and optimize the internal recruitment
platform. Various subsidiaries have carried out internal talent recruitment activities in an
orderly manner while adding new recruitment channels for corporate recruitment and
expanding the career development channels of employees. As a result the Company
realizes a win-win talent strategy and provides guarantee for the realization of corporate
long-term goals.* Talent Training
69In order to continuously optimize the internal talent system TCL TECH has established
an all-round and multi-level training mechanism through T Academy CSOT Academy
and Zhonghuan Academy. In 2021 TCL carried out a total of 20 training programs to
support the sound development of the “Eagle” talent training system. This system has
been a mature talent training system over the years – starting from "Young Eagle" it
builds leadership program and high-potential talent training system from "Young Eagle"
"Flying Eagle" and "Strong Eagle" to "Crown Eagle".? T Academy
In 2021 T Academy carried out a number of talent training projects such as the senior
backup training project - Phases 4 and Phase 5 of Soaring Plan the middle-level leader
training project –Phase 13 and Phase 14 of Strong Eagle Project Flying Eagle Plan new
appointment projects etc. The annual training covers thousands of people. In 2021 the
Company improved the online learning system and easier access to training courses so
TCLers can be spared from location or time and participate in trainings more
conveniently.
70Senior Management Reserve Training “Soaring Plan”
Project Goal: to develop a strategic reserve team with a global perspective
Training concept: from training talents to managing talents
Training form: talent inventory and evaluation + systematic GDP + personalized IDP +
practical project + executive companion reading + rotation assignment + shadow
learning + benchmarking study tour
Project Value: the “Soaring Plan” aims to discover and develop high-potential talents
and explore an effective reserve talent training model. The project builds a common
language for talent selection evaluation and development that starts with the end is
guided by standards. It also leverages senior executives’ practical actions for the
cultivation of reserve talents. After years of exploration and practice we have
summarized a set of model "5D1S" as the main idea for project design and
implementation. The “Soaring Plan” is not only a simple talent training but strictly runs
through the closed loop of "selection training development and appointment".In 2021 the fourth phase of “Soaring Plan” completed the overall learning and
71graduation camp of the two module courses – digitalization leadership and financial
management. The fifth phase of “Soaring Plan” completed the gathering of 27
employees and conducted the team building at the Inner Mongolia camp and finished
the second module of strategic training. The average course satisfaction is 4.9. During
the mean time the Company established an online reading and sharing mechanism
and organized 3 activities to enrich the employee knowledge sharing system.Strategic Talent Training Model
Middle-Level Management Training “Strong Eagle Plan”
Project Goal: to train a group of middle-level managers with good quality excellent
achievement and high performance
Training Concept: learning transformation performance improvement combination of
theory and practice cognitive improvement
Project Value: Personalize and customize trainings for middle-level management
talents based on specific and clear job requirements. Through special trainings role
play and other methods the project aims to enhance capability development increase
talent density and promote organizational performance improvement.The fourteenth phase of “Strong Eagle Plan” has a total of 90 employee students.During the training period they completed four module courses: role recognition
strategy decoding and implementation business thinking and R&D and sales system
construction. The average course satisfaction was 4.65. There are 21 topics for
performance improvement covering 3 major industries and 5 functional modules. The
students visited Zhonghuan Leading Zhonghuan Photovoltaic t6 of Shenzhen CSOT
t10 of Suzhou CSOT Maojia etc. During the project 7 people were rotated 5 people
promoted from GGS and 2 people promoted to director-level.
72In 2021 TCL TECH talent training schemes pay more attention to the training of business
talents and adjust the training courses to be close to business scenarios and focus on
business value. The role recognition project to empower key positions is carried out by
the Learning and Development Team of Organization Department. Through project pilot
the Team gradually internalizes the methods and experiences of role cognition and
promotes these tools to more business units for talent trainings of key positions.The Company empowers key positions through special trainings and role recognition to
delivers high-quality talents. The projects conducted include strategic trainings role
cognitive empowerment for regional sales technology related series trainings
construction and operation of human resources series courses. Meanwhile TCL TECH
has established an independent evaluation system for technical and skilled talents.Through the selection of the First Batch of Enterprises Implementing Skills Training
Program for One Millions Workers in the Strategic Industrial Cluster Program of the
Guangdong Provincial Department of Human Resources and Social Security more than
2000 front-line employees have applied for skill certification.
T Academy
In 2021 T Academy TCL's online learning platform has completed the 2.0 stage
development realizing the sharing of industrial courses and lecturer resources. The
platform bears user-centered concept and continuously improves system functions to
create an innovative experience of knowledge functions and interaction. The number
of T Academy users is more than 50000 and the average learning time of each user is
8.04 hours. The online courses cover leadership professional skills and common
knowledge. Currently there are 2383 courses.
73T Academy 2021 Key Performance
Indicator Performance
Total training investment (ten thousand
380
RMB)
Total number of participants (person) 28224
Offline training (hour) 11607
Online training (hour) 3208
? CSOT Academy
Driven by the company's vision and mission CSOT Academy develops a "one base two
pillars and two wings" education and development system to support the global leading
business. The Academy sets up respective systems for management new employees
and technicians. TCL CSOT consolidates resources organizes employee trainings and
establishes employee development system to support the growth of overall CSTO
business.Management Training (Eagle System Talent Training Plan)
For the four positions of Division Manager Department Director Director and General
Manager corresponding reserve trainings are carried out every year. As for the series
of new appointments trainings the Plan combines theory with practice emphasizing
the role cognition driving behavior change improving performance and building
capacity of management to support the implementation of corporate strategy.New Employee Training
According to the company's talent strategy the “young eagles” usually derived within
the company need accelerating trainings and stimulation to raise the success rate.CSOT establishes a three-year training system for “young eagles” with "two wings in
one" mechanism so as to achieve the goal of rapid development of “young eagles” and
increased talent reserves. The trainings include the “young eagles” trainings upon
enrollment and “young eagles” that are at the post within one year the "starting"
training camps “young eagles” at post for 2 to 3 years and the "starting plus" training
camps at post for 3 to 4 years. The trainings are carried out on a regular basis every
year aiming to improve new employees’ competency as soon as possible and
74consolidate the foundation for company's talent development.
Technician Talents Training
CSOT Academy together with colleges institutes and CSOT business units
respectively provides various empowerment and training measures for technician
talents. The Academy also cooperates with tutors to support technicians’ on-the-job
trainings to promote the rapid and steady development of professional talents. The
training system is guided by job responsibilities and ECP standards with study maps
resources and relevant mechanisms as the cornerstone and on-the-job practice as
the main axis. The projects includes digital flag-bearer training camp to support the
company's digital transformation project management training camp to support the
company's key business units product manager special training camp and the ISC
expert trainings.TCL CSOT “One Week for One Method” Training
In order to promte efficient working methods and improve internal work quality TCL
CSOT launched the " One Week for One Method " activity expecting employees to
acquire one new work method every week. The activity was held for 22 sessions
providing employees with a variety of learning methods.TCL CSOT Digital Flag-Bearer Training Camp
The TCL CSOT Digital Flag-Bearer Training Camp aims to integrate digital operation
and business management help the company achieve the goal of digital
transformation and support the implementation of the company's digital strategy. This
training camp brought together nearly 120 employees from Shenzhen Wuhan and
Suzhou covering six key functions of R&D sales manufacturing supply chain finance
and human resources. Until now the training camp has completed the first phase of
empowerment learning and the participants have initially built a digital knowledge
system.
75In order to improve the efficiency of knowledge management and reduce the cost of
offline learning CSOT Academy has developed Starway Academy an online learning
platform. Now CSOT Academy has 1 online learning platform and 2 recording
classrooms which can implement more than 8 types of trainings according to teaching
needs such as recording live broadcasting and interviews.CSOT Academy 2021 Key Performance
Indicator Performance
Total training investment (ten thousand RMB) 1284
Total number of participants (person) 37635
Total participant training hours (hour) 718473
? Zhonghuan Academy
In order to establish a sound training system inherit corporate culture and support the
achievement of the company's strategic goals TCL Zhonghuan established Zhonghuan
Academy which includes four major colleges and eight training modules.The four colleges are: Management College Intelligence College Materials College and
Capacity College. On the basis of strategic goals Management College focuses on
leadership development and is charge of building corporate overall talent pool and
promoting corporate culture construction; Intelligence College Materials College and
Capacity College focus on professional development. In addition Zhonghuan Academy
has established a sharing center with rich resource including expert database
evaluation center course center and business case center to help accumulate best
practices and experiences. The online learning platform of Zhonghuan Academy is an
76important starting point for the company to build a learning organization and it can also
provide support for the resource sharing of various industries and its subsidiaries.* Career Development
TCL TECH adheres to the concept of "making the best use of talents " regularly update
talent cateer development channels and continuously promote the dual development of
management and technical professionals.? Refine Qualification Management System
In order to stimulate the rapid development of employees to meet business needs the
Company carried out sorting on talents and their positions in the R&D sequence defined
the employment standards in the fields of hardware software structure display and
other technical fields specified employee promotion requirements. The Company fully
supports the cross-section talent transfer of similar industries which lays a solid
foundation for the retention incentives and mobility of R&D talents.? Management Rotation Mechanism
In order to enhance corporate vitality and optimize talents structure TCL TECH
encourages management rotation and employee cross-functional exchange in a
proactive approach. TCL TECH continues to promote the "Living Water Plan"
establishing an open mobility platform for employees to flexiably rotate across industries
departments and functions and eliminating obstacles of job rotation from previous
department or line manager for friendly rotation atmosphere.? Internal Open Competition
The sound recruitment and training mechanism enables TCL TECH with higher
confidence in internal talents. The proportion of talents cultivated within the company is
set as a key talent indicator and internal employees will be given priority for the
succession of core management positions. In addition TCL TECH is also continuously
strengthening the implementation of the “Eagle Plan” trainings providing open promotion
opportunities for employees at all levels through internal open competition so that
employees with strong willingness capability and potential find breakthrough for better
development.
2.4.5. Employee Care
TCL TECH is committed to creating a benign working environment and providing a rich
variety of employee activities with the philosophy of "happy work and healthy life" to
enhance employees' sense of happiness and belonging. To celebrate the 40th
anniversary of TCL TECH in 2021 the Company carried out a series of online and offline
employee care activities.* Employee Art and Sports Activities
77In 2021 to enrich employee after-work life and support employee health and well-being
TCL TECH Trade Union carried out splendid activities such as Female Image in the
Workplace Online Training on Women's Day the 4th labor skills competition the 7th
badminton competition the first men's basketball competition and the first e-sports
competition. The Company also encourages trade unions and art and sports association
of all its subsidiaries to conduct employee activities.TCL TECH “Yi Jianlian” Cup Basketball Game
From August 28th to 30th 2021 to promote corporate exchange and enrich employees'
lives TCL TECH held the first employee men's basketball game at the TCL
International E City Basketball Hall and nearly 200 employees of 16 corporate teams
including TCL Zhonghua TCL CSOT Maojia participated in the Game. Basketball Star
Yi Jianlian was invited to the final as the guest of honor. The event was live
broadcasted via different online platforms such as TCL+ WeChat mini program T Chat
TCL video account with a total of more than 800 views.CSOT Art and Sports Association
In 2021 the TCL CSOT Art and Sports Association is further expanded and already
has a total of 18 sub-associations including football association basketball
association mountaineering association swimming association badminton
association dance association photography association table tennis association
tennis association winter game association cycling association roller skating
association marathon association calligraphy association literature association AI
brain association yoga association and public speech association. In addition the
Association also held 12 major events including community visit Women’s Day
Cheering Run badminton competition Dragon Boat Festival activity anti-pandemic
activities workplace trainings youth networking skills competitions film watching and
new year celebration.
78Pass on TCL Zhonghuan Corporate Culture
Based on 63 years of corporate culture accumulation the company has established a
comprehensive set of corporate culture system with "people-oriented" as the core
"environmentally friendly employees love society respects and customers trust" as the
vision and "engineer culture entrepreneur mentality three negatives and Change is
better" as the values. The company establish business management concepts talent
management principles organizational management principles and business
management principles according to the corporate culture system which plays a
leading role of guiding and regulating employee positive and negative behaviors.In addition TCL Zhonghuan takes the WeChat account role model demonstration
upgrading of corporate culture IP and corporate culture activities as the starting point
the company runs Happy Zhonghuan WeChat account launches “Zhonghuan People”
column launches “Three Cups of Coffee” activity upgrades the IP image of Huanhuan
2.0 version creates corporate IP emojis designs corporate culture related products
and organizes family open day activity so as to explore new communication channels
that cater youth taste for effective implementation of corporate culture. Guided by
corporate culture TCL Zhonghuan stimulates corporate vitality and enhances
employee happiness pouring vitality into the high-quality development of the company.* Care for Employee Life
79TCL TECH attaches great importance to the physical and mental health of employees
and its subsidiaries carry out various activities to provide assistance and education on
mental health for employees and their family members in need.TCL TECH is dedicated to develop a diversified employee service system and has
established 6 Homes of Employees 1 employee service station 5 Model Worker
innovation studios 6 infant rooms 1 employee psychology service center 9 labor union
legal counsel stations and 2 labor relations monitoring centers. The Company organizes
Party member Spring Festival visit activities and offer allowances to employees in
difficulty. The home visit helps the Company better understand the living conditions of
employees in difficulty and help solve their actual problems.In 2021 TCL TECH provided assistance to 1727 employees in difficulty with a total
support of 61200 RMB. Meanwhile the company actively responded to national
provincial and municipal federations of trade unions and supported Company trade
union to participate in various assistance activities such as “send coolness in summer”
“help students in autumn” and “send warmth in winter” to help employees in difficulty.Moreover the Company finds every mean to obtain assistance from government and
society to alleviate their stress.Female Employee Care
TCL TECH has set up 6 "infant rooms" at the Group Headquarter and subsidiaries to
provide services for female employees in special times. The company conducts
hospital visits and provides maternity allowance to female employees showing a good
corporate culture of people care. In addition the company organizes cervical and
breast cancer screening for female employees every year and provides mental
counseling to female employees.TCL Zhonghuan Staff Dormitory Upgrading
The company carried out the upgrading of staff dormitory in 2021 and the first phase
dormitory upgrading of Yixing factory and Tianjin factory was finished. Currently the
Yixing factory provides 642 white-collar apartments for 562 people and 668 blue-collar
apartments for 1900 people while the Tianjin factory has upgraded 521 dormitories for
1424 employees.
80812.5. Contributing to Society and Engaging in Community
Service
TCL TECH regards public welfare and community services as important part of the
company's sustainable development and actively participates in public welfare initiatives
continuously invests in public welfare carries out various public welfare projects and
advocates public welfare culture to promote the national strategy on rural revitalization
and common prosperity.
2.5.1. TCL Foundation
In 2012 Shenzhen TCL Foundation initiated by Chairman Li Dongsheng of TCL TECH
was officially registered and established. "Pursuing public interests and promoting social
progress" is the core value of Shenzhen TCL Foundation. TCL Foundation bears thephilosophy of “follow Chinese constitution laws regulations and national policies provideeducational and development opportunities for the vulnerable groups and seekcommunity healthy development and environmental sustainability” and is devoted to
three major public welfare areas of poverty alleviation student assistance and disaster
relief.Indicator 2021
Annual income of TCL Foundation (RMB) 62997082.44
Annual donation income of TCL 62422925.50
Foundation (RMB)
Annual expenditure of TCL Foundation 50770611.86
(RMB)
Annual expenditure for public welfare of 49545862.34
TCL Foundation (RMB)
In 2021 TCL Foundation's public welfare expenditure accounts for 97.59% of the
foundation’s total expenditure
* "A.I. Back Home" Project
In order to strengthen the emotional connection between the left-behind children in rural
areas and their parents who work at different places in 2019 TCL Foundation
cooperated with TCL Industrial Research Institute to develop and design the "Eagle"
story robot with AI technology. The story robot simulates the voices of parents to tell
stories for children when their parents can accompany them. In 2021 TCL Foundation
upgraded the project and launch a WeChat mini program - "Eagle Listen" which
integrates AI technology to customize parental voices with different background settings.At present the mini program has included thousands of children growth stories and
82hundreds of world famous songs. In addition the mini program can connect to the
"Eagle" story robot and "Xiaoxue" music robot via mobile phone Bluetooth for intelligent
interaction.? "Eagle Story Club"
As an extension activity of "A.I. Back Home" project the "Eagle Story Club" drives the
participation of the whole school on a class basis. Considering language learning needs
of pilot classes "Eagle" story robot is used to select appropriate stories to introduce
famous Chinese and foreign literature to the children in the form of story clubs. In August
2021 the third batch of "Eagle Story Club" were carried out in 4 pilot schools in Anhui
Shaanxi Sichuan and Hunan province.In 2021 the "Eagle" story club project was conducted in 14 rural pilot schools of 9
provinces. A total of 50 "Eagle" story robots were distributed benefiting more than 2000
rural children.Eagle Story Club
? “Eagle Listen”
83In 2021 the "A.I. Back Home" project developed the "Eagle Listen" mini program. "Eagle
Listen" is a WeChat mini program that integrates artificial intelligence (A.I.) technology to
customize parental voice to tell story and play music. It has built-in industry-leading ASR
and voiceprint recognition technology and supports users to use the recording function
for AI synthesis voice simulation and thus listen to the stories from mini program with
simulated voice. Up to now nearly 1000 people have used the mini program to record
their voice."Eagle Listen" mini program
* “Little Musician+” Project
TCL Foundation and the Central Conservatory of Music Education Foundation initiated
the "Little Musician+" project and developed the "Xiaoxue" music robot to provide
children who lack of music resources with famous Chinese and foreign music and its
appreciations aiming to enrich the music resources of primary schools in rural areas and
inspire every child to be positive and optimistic by the power of music to. In 2021 the
project visualized the famous Chinese and foreign songs in "Xiaoxue" music robot and
designed music picture books to help rural children understand the connotation of music
and enhance their imagination.
84"Xiaoxue" music robot and music picture book
? "Xiaoxue Music Class"
In 2021 the "Xiaoxue Music Class" project added 5 pilot schools from 5 provinces
including Anhui Jilin and Shanxi. In all the project was carried out at 13 schools of 10
provinces across the country and a total of 50 “Xiaoxue music robots” were distributed
benefiting more than 3000 students.Xiaoxue Music Class
In the first half of 2021 "Eagle" and "Xiaoxue" participated in the founding ceremony of
the pilot schools in Heilongjiang and Inner Mongolia. Project team visited the "Xiaoxue
Music Class" and "Eagle Story Club" in Qiqihar Minority Primary School in Heilongjiang.In the second half of the year the founding ceremony of the pilot school was held in Sui
County Henan Province. Project team visited Xiangyang Primary School in Sui County
85conducted a seminar with the headmaster of 7 schools in Sui County to brainstorm the
future implementation and new ideas for "Xiaoxue Music Class" and "Eagle Story Club".* TCL Project Hope Candlelight Award
TCL Project Hope Candlelight Award was jointly established by Shenzhen TCL
Foundation and China Youth Development Foundation. The award aims to recognize
rural teachers who have worked hard in the front line of rural education demonstrate
their morality and professional dreams encourage more outstanding teachers to take
root in rural education and promote the development of rural education.In 2021 the 7th TCL Project Hope Candlelight Award selected 524 qualified rural teachers
to enter into the final review session after several rounds of registration data screening
and information verification. Eventually 400 outstanding rural teachers were selected by
judge jury committee and each of the winner teachers will receive a personal reward
worth 8000 RMB which is composed of direct cash reward and 7-day offline Candlelight
Classroom trainings. In October the grand ceremony of honor with the theme of "Dare to
Love with Candlelight and Joint for Rural Revitalization" was successfully organized at
the Sky Vault Theater of TCL International E City. Nearly 100 representatives of award-
winning teachers participated and received the honors.
86* Candlelight Micro-Load
In order to address the financial needs of rural teachers and their families in major
diseases household living consumption skills training TCL Foundation and TCL
Financial Group jointly launched the Candlelight Micro-Loan public welfare project
aiming to improve the quality of life of front-line rural educators with the innovative
method of “public welfare plus finance” and in the long run support the development of
rural education. In 2021 "Candlelight Micro Loan" has received nearly 20 applications
from rural teachers and provided loans of nearly 300000 RMB to 6 teachers.
2.5.2. Huameng Foundation
The name of Huameng derives from “Charity to support China and Sprout with love”.Huameng Foundation was initiated and founded by Mr. Li Dongsheng Founder and
Chairman of TCL and his wife Madame Wei Xue. Huameng focuses on educational
cause closely follows government education policies and promotes quality education.Huameng provides scholarship funding to establish a comprehensive quality training
system and highlight programs are "Huameng Star Class" "Huameng Summer Camp"
"Graduation Farewell Party" "Huameng Alumni Network". Music education are latedly
added in Huameng training system.By the end of 2021:
A total of 1195 students have been sponsored.* Huameng Class
"Huameng Class" aims to support excellent high school students in poverty-stricken
areas to successfully complete their studies to further their education in universities. The
project provides each supported high school student with 8000 RMB per year for tuition
fee and living expenses and after the overall assessment provides additional College
Dream Scholarship of 23000 RMB for each Top 10 student from "Huameng Class". With
87the "Star Class" "Summer Camp" "Graduation Farewell Party" and "Alumni Network"
Huameng establishes a comprehensive quality training system to improve Huameng
students’ overall quality help them grow in an all-round way and broaden their horizons
outside the classroom.As of December 2021 "Huameng Class" has funded a total of 1183 high school
students from poor families with excellent performance of which 210 students have won
the College Dream Scholarships. The students from “Huameng class” have achieved
excellent grades – the overall undergraduate enrollment rate is 92% and the enrollment
rate to key universities is 55%. Among them 438 students were admitted to 985/211
universities including Tsinghua University Peking University Renmin University and
Fudan University.Content 2021Number of high school freshmen funded by “Huameng 50Class”
Number of total high school students funded by 247
“Huameng Class”
Number of current university Huameng students that
110
won the College Dream Scholarships
Number of Gao Zhaojun Teaching and Student 90
Scholarship
Huameng Alumni
In order to pay ongoing attention to Huameng students and provide them with a
platform for exchange learning and resource sharing the Huameng Alumni Network
was setup in January 2021. The Network is divided into five chapters by region and
more than 500 Huameng alumni have joined. Up to now the Alumni Network conducts
online and offline activities such as visit to Wuhan CSOT Jinsha Site Museum visit
renowned teachers online sharing sessions etc.
88Mid-China Branch of Huameng Alumni Network visited Wuhan CSOT
Huameng Star Class
In October 2021 Huameng Star Class was held at Dali No. 1 Middle School. Ms. Liu
Biling the sixth-generation inheritor of cloisonné enamel painting a precious intangible
cultural heritage was invited and interacted with students and guided students to make
the cloisonné enamel painting. Huameng Star Class hopes that through this learning
and experience students can understand the charm of intangible cultural heritage so
that more people can participate in the inheritance of excellent traditional culture.
2021 Huameng Star Class at Dali No. 1 Middle School
89Outstanding Huameng Students Salute to "May 4th Youth Day""Youth have responsibility so their country has strength". On the "May 4th Youth Day” in
2021 Huameng students demonstrated their confidence and responsibility for
shouldering social mission and uniting youth powner in the form of videos. They are not
only determined to pursue their dreams but also have the courage to put them into
practice. Every Huameng student incubates their ideas into practice and push forward
social development with their power.Youth Speech from Outstanding Huameng Students
* Music Dream and Exchange
In order to better help outstanding students who lack of international exchange
opportunities to realize their music dreams and take music as connection to promote
cultural exchanges in 2019 Huameng and the Central Conservatory of Music jointly
launched the "Music Dream and Exchange" project which has funded 12 outstanding
music students at home and abroad for exchange study.In 2021 TCL celebrated its 40th anniversary. In the special 40th anniversary concert
outstanding graduates of the "Music Dream and Exchange" project presented a
wonderful and professional performance to demonstrate Huameng spirit. In addition at
TCL 40th Anniversary Commendation Ceremony Huameng students from the Central
Conservatory of Music made singing performance at the charity session present their
best wishes to TCL.
90Photo of guests and the orchestra at TCL 40th anniversary special concert
2.5.3. Build Harmonious communities
TCL TECH is enthusiastic in community investment where it is located and endeavors to
contribute to community development. In order to provide a more comfortable living
environment for patient orphans in 2021 TCL Charity Foundation donated 37 air-
conditions worth of RMB 270000 to the patient orphan care project of Shanghai Child
Care Center initiated by Aiyou Charity Foundation.Support Rural Revitalization and Educational Support
Yanchuan County is affiliated to Yan'an City Shaanxi Province. Although it is off the list
from poverty-stricken counties the study conditions here are still very poor. Knowing
the situation TCL TECH together with several other caring companies donated a total
of 144 lighting lamps for 22 classrooms and 12 offices for phase one teaching building
as well as eye protection lamps and intelligent office systems for conference rooms to
Nanguan Primary School in Yanchuan County. For the phase two teaching building the
Company donated eye protection lamps blackboard lamps and switch panels for 17
classrooms and a 220-square-meter lecture hall to support rural revitalization cause of
Yanchuan county support Yanchuan educational development and make sure that
children can study in light and healthy environment.
912.5.4. Employee Volunteer Activities
TCL TECH support employee volunteer activities. After years of experiences good
atmosphere for volunteer activities has been formed. TCL TECH actively encourages
employees to participate in voluntary activities and contribute to building a better society
together.Rose Initiative
In 2021 TCL TECH carried out the "Rose Initiative" and invited TCL TECH employee
volunteers to visit rural teachers who have been preliminarily selected for "TCL Project
Hope Candlelight Award" understand the project situation and find out the actual living
conditions of rural teachers. In addition volunteers are encouraged to share the
moving stories of front-line teachers and call for attention to rural education and care
for rural teachers. For the visit of Rose Initiative more than 40 volunteers from TCL
CSOT and other subsidiaries formed 20 groups and visited more than 10 regions
including Shanxi Hebei Gansu and Yunnan and visited 25 front-line rural teachers in
total.
92933. Governance: Excellent Governance to Consolidate
the Foundation of Operation
As one of the first batch of 9 internal control pilot companies of the Guangdong Securities
Regulatory Bureau TCL TECH has regarded corporate governance as the cornerstone
of corporate development since its listing and is keen to the completion and
improvement of the internal control system. At present TCL has established an
organizational structure that meets the company's business scale and operation by
setting up responsible departments and positions scientific planning of their job
responsibilities forming an internal control system in which each performs its own duties
bears its own responsibilities cooperates with each other and restricts each other. TCL
TECH sincerely fulfills its obligation of information disclosure as listed company fully
communicates with investors and other important stakeholders and continuously
enhance corporate governance.* Well-Established Governance Structure
TCL has established a series of mechanism including Shareholders’ Meetings Board of
Directors and its affiliated committee Board of Supervisors and Executive Committee
and formulated corresponding rules of procedure and management systems in strict
accordance with the laws and regulations such as the Company Law the Securities Law
and the Code of Corporate Governance for Listed Companies. TCL's board of
supervisors is diligent and conscientious and the supervisors conduct in-depth corporate
research and proactively put forward management suggestions which effectively
improves the company's internal governance mechanism. TCL continuously enhances
company's information disclosure management and investor relationship management
through innovative management systems. The company is committed to social welfare
and has set up charity foundation. These measures have made the company's
governance level at the forefront of the industry
* Comprehensive Institutional Guarantee
In terms of management system in 2021 TCL TECH revised relevant managemnt such
as the Articles of TCL and the Rules of Procedure of the Board of Directors to further
improve the corporate governance structure and improve the company's management
level.* Smooth Communication Mechanism
In 2021 TCL TECH held a total of 11 Board meetings 7 Supervisory Board meetings
and 6 Shareholders’ Meetings. During the meetings all proposals were fully discussed
and voted to show respect to shareholders reflecting Company’s dedication in protecting
shareholders’ rights especially tho small and medium shareholders. TCL TECH
organized trainings for Board of Directors Supervisors and Senior Executives to
systematically study the laws and regulations on governance of listed company
94enhancing their risk prevention awareness and self-discipline.
3.1. Protection of Investors’ Rights and Interests
Information disclosure is the core to protect the rights and interests of investors. TCL
TECH attaches great importance to information disclosure strictly abides by relevant
regulations and timely fulfills information disclosure obligations to ensure the truthfulness
accuracy completeness timeliness and fairness of information disclosure continuously
improving the transparency and quality of information disclosure. In order to realize the
disclosure and transparency of the company's operation information to the public the
company has formulated strict Information Disclosure Management Measure which
unifies the content and standards of information disclosure the process of information
transmission review and disclosure. The Measure also identifies the person directly
responsible for information disclosure and his accountability so as to systematically and
timely grasp the major issues from its subsidiaries for the disclosure of group information.While fulfilling its disclosure obligations TCL adheres to the concept of "openness
fairness and justice" explores a proactive information disclosure mechanism so as to
effectively protect the legitimate rights and interests of investors conduct positive
interaction with investors and eventually gain trust from investors. The Company
strengthens communication with institutional investors media and individual investors by
holding business performance conferences organizing factory visits conducting surveys
participating in brokerage meetings roadshows and telephone calls etc.In 2021 TCL TECH held 2 on-site business performance conferences 2 telephone
performance exchange meetings received 34 investor surveys and interviews
participated in 33 strategy meetings and carried out 110 roadshows in Beijing Shanghai
Guangzhou Shenzhen and other cities. The Company communicated with almost 1000
people from exchanges during the whole year enhancing investors' understanding of the
company's business and investment value.TCL TECH attaches great importance to the protection of the rights and interests of small
and medium investors. In the governance Board of Directors Board of Supervisors and
Shareholders’ Meetings the Company adopts a cumulative voting system when electing
Directors and Supervisors. All proposals reviewed at the Shareholders’ Meeting are voted
online stricter than current requirements on corporate governance to effectively protect
the voting rights of small and medium shareholders.In order to meet the information needs of small and medium investors for the company
TCL TECH sets up two investor hotlines to answer investors’ questions. In 2021 TCL
TECH replied to over 400 investor questions through Hu Dong Yi platform. In addition
TCL TECH set up an investor relations WeChat account to actively disseminate
company's daily information so that major investors can keep abreast of the company's
dynamics.
95Indicator Unit 2021
Total number of shareholders Account 799609
Average number of shares Share
17547
held by each account
Number of individual Account
shareholders 796781
Average number of shares Share
held by individual 11027
shareholder
Number of institutional Account
2828
shareholders
Average number of shares Share
held by institutional 1854405
shareholder
3.2. Compliance Operation and Fair Competition
TCL TECH has established a comprehensive compliance and risk management system.The Company strengthens the implementation of internal control strengthens information
management and control and strengthens supervision in order to continuously improve
its compliance management capabilities. In addition based on honest operation TCL
TECH actively carries out anti-unfair competition and anti-monopoly related work.* Compliance Operation
Compliance is a necessary guarantee for strengthening the company's internal
supervision and preventing corporate risks. TCL TECH has always attached great
importance to compliance operation and gradually increases the management of
compliance risks while accelerating the international business. In 2020 TCL TECH
established a "Compliance Working Group" to review demonstrate and share knowledge
on the compliance of the company's business investment and financing activities. The
Company builds a systematic compliance risk assessment and response mechanism
covering TCL TECH TCL CSOT and other entities completes the identification and
sorting of the company's main compliance risks and provides the overall and
implementation plan for the construction of the compliance management system. In 2021
the compliance work of the company has taken a substantial step and the "Compliance
(Shared) Competence Center" has been established.The Center gathers professionals
from various industries and is committed to forming knowledge accumulation
consolidating compliance work results promoting standard work process collaboration
and empowerment as well as resources sharing.* Risk Management
TCL TECH draws on the experience from other leading companies continuously
optimizes business processes improves the weakness of its original system and builds
a comprehensive risk management system to meet the company's new system and new
96business needs. TCL effectively integrates internal and external data enhances risk
perception and enables information delivery to the entire system for timely response.TCL TECH has established a comprehensive risk management system that complies
with regulatory requirements from the perspectives of improving the internal control
system strengthening the implementation of internal control intensifying information
management and control and strengthening investor supervision to improve compliance
management capabilities and internal control capabilities.* Fair Competition
TCL TECH resolutely carries out anti-unfair competition and anti-monopoly work. TCL
TECH and TCL CSOT strictly abide by the relevant laws and regulations such as the
Anti-monopoly Law Law against Unfair Competition and the Foreign Trade Law of the
People's Republic of China are committed tosupporting government to create a fair
market environment against improper means to restrict or exclude market competition.The trade secret infringement case handled by TCL CSOT was selected as 50 Typical
Intellectual Property Cases in Chinese Courts by the Supreme People's Court.In 2021 TCL TECH held a special anti-monopoly training at its headquarters which
introduced domestic and foreign anti-monopoly supervision and practices. In addition
TCL TECH has made declarations on domestic and foreign antimonopoly at a number of
major financing investment according to the law. Four antimonopoly declarations were
applied and successfully approved covering 5 jurisdiction areas of China the Republic of
Korea Vietnam Turkey and Slovakia.Anti-Monopoly Training
3.3. Anti-Corruption
TCL TECH adopts a zero-tolerance attitude towards corruption and strives to build an
ethical system to prevent corruption and an ethical company. As for the four Company
values "Change Innovation Accountability and Excellence" "integrity and credibility"
root first for "accountability" which clearly requires employees to keep to their promises
97and to be pragmatic honest and self-disciplined.
Audit Committee is set up under the Board of Directors of TCL TECH Audit and
Supervision Department is set up at the Group level as a special anti-corruption
institution and Audit and Supervision Departments are set up at key subsidiaries. As of
these are responsible for promoting anti-corruption. TCL TECH follows the "three-in-one"
integrity system of investigation and deterrence institutional restraint and warning and
education and takes "TCL Ten Red Lines" as the core to continuously improve the
integrity and anti-corruption system regulate employees' behaviors and require business
partners to follow high business ethics standards.In terms of institutional system TCL TECH established a series of core integrity
management systems such as TCL Partner Code of Conduct TCL Employees Conflict
of Interest Declaration Management TCL Employees Accepted Gifts Disposal and
Reward Management TCL Procurement Business Discipline Code TCL Accountability
Management and TCL Confidentiality Management Regulations. TCL TECH has
adopted a systematic integrity education and training mechanism. All employees need to
sign the Integrity Commitment when upon enrollment. Suppliers and customers are to
sign the TCL’s Commitment of Integrity or Partner Code of Conduct for Partners upon
cooperation. Through new employee training special training for high-exposure positions
etc. the Company effectively improve the integrity and self-discipline awareness of all
employees.TCL advocates and encourages all employees to assist in anti-corruption work. The
Company sets up a special reporting mail box and telephone for employees to report in
real-name or anonymously. The reporting channels are repeatedly promoted through
internal notices and external announcements. Moreover Audit and Supervision
Department strictly implements the reporting and complaint handling procedures and the
whistleblower protection mechanism and assigns special person to collect reporting
messages note down and reply within 24 hours.For business fraud TCL TECH also bears the zero tolerance attitude. In 2021 TCL
TECH investigated and handled 5 cases and fired 10 people. 3 of them have been
arrested by the procuratorate on suspicion of crimes and 2 have been transferred to the
police department for investigation.In the first half of 2021 TCL TECH launched the 2021 TCL Integrity Index Survey. The
results showed that the corporate Integrity Index was 8.64 an increase of 0.2 compared
with 2020.
3.4. Information Security Protection
Normal operation of an enterprise is inseparable from information and information
security is the fundamental for a company to chase for business continuity. With the
development of TCL TECH protection of information security such as intellectual
98property rights and trade secrets is particularly important. Therefore the Company
embeds trade secret compliance requirements into policies processes projects and
transactions and educates employees through various channels such as email and
announcement and require all subsidiaries to follow.The Company has set a situational awareness platform in security monitoring which is
used to monitor internal and external network attacks illegal access and process event
alarm information generated by the system. The platform processes about 10000 alarm
messages generated by the system every day and sends more than 464 real
vulnerabilities after verifying the alarm information with an overall repair rate of 60.2%.The company has added tools such as WAF anti-tampering of webpages and cloud
DDOS for in-depth website protection. On average WAF blocks about 10000 attacks of
various types every day. TCL adopts anti-virus desktop management and encryption
systems to protect terminal data prevent threats from terminal and server viruses of the
Group and its subsidiaries and conduct standard security management in patch update
desktop management file encryption and decryption etc. Each day the anti-virus
terminal deals with 14097 threats.TCL TECH follows the EU General Data Protection Regulation (GDPR) and strictly
regulates corporate privacy protection behavior. In addition TCL TECH attaches great
importance to the promotion and training on information security. In 2021 T Academy
carried out the online training of information security awareness and altogether 810
people completed the learning.Code Leakage Monitoring + Code Audit
About 10242 high-risk vulnerabilities 37601 medium-risk vulnerabilities and 7267
low-risk vulnerabilities were found
3.5. Intellectual Property Protection
TCL TECH abides by international intellectual property rights deals with intellectual
property affairs in accordance with laws and international practices and sincerely
resolves intellectual property issues. Nevertheless the Company safeguards its
legitimate rights and interests through judicial procedures against malicious intellectual
property infringements. Through patent systems such as the Patent Application
Management System TCL TECH promotes high-value patent reserves and realizes core
patent value and strengthens the Group's global patent competitiveness and innovation-
driven development capabilities. At present TCL TECH has applied to join the Intellectual
Property Protection Alliance of Listed Enterprises.TCL CSOT attaches great importance to the role of intellectual property rights in its
development. The company has passed the re-examination at the end of 2019 and was
approved as a national intellectual property rights demonstration enterprise. In
99combination with corporate core development goals TCL CSOT has formulated a
systematic patent implementation plan focusing on strengthening the patent work
carrying out education and trainings related to intellectual property rights driving the
transformation and implementation of patented technologies.TCL CSOT has introduced a core technology patent distribution system assessment
mechanism on the maintenance and abandonment of patent rights patent rights
protection system and incentive mechanism for patent applications to strengthen
intellectual property management and protection.Core technology patent For the company's key R&D projects and R&D teams TCL
layout system CSOT has particularly formulated a patent layout system
and a patent layout team. The system defines code of
conduct for team members and layout guidelines proposes
team leader system and establishes selection and incentive
mechanism. The system is guaranteed for operation through
expert jury team and financial budget.Assessment mechanism In order to save financial cost TCL CSOT has formulated a
on the maintenance and strict maintenance and abandonment assessment
abandonment of patent mechanism for authorized patents which defines the
rights assessed objects members processes dimensions and
evaluation cycles of patent. This mechanism can save the
company tens of thousands of RMB every year.Patent rights protection In order to emphasize the value of patents TCL CSOT has
system established a patent rights protection system. The system
defines responsible person time and process to defend
patent rights. At present TCL CSOT has conducted several
investigations and monitoring on the implementation of the
system.Incentive mechanism for In order to stimulate the technological innovation and the
patent application enthusiasm for patent application of technicians TCL CSOT
has established a patent rewarding system. The system
defines the types of rewards and specific rules such as the
amount of bonuses the rewarding period so as to
vigorously encourage invention and creation and raise the
enthusiasm of technicians for creative inventions.In order to improve the company's ability to manage intellectual property rights TCL
CSOT has taken various measures to standardize corporate behavior and related parties
in an all-round way. TCL CSOT regularly conducts trainings on patent knowledge and
organizes intellectual property protection awareness trainings particularly for R&D
engineers to raise their legal awareness on intellectual property rights. TCL CSOT
implements the research and development confidentiality system. According to the
system the project team requires R&D personnels and business partners involved in the
patented technology to sign a "confidentiality agreement" to prevent information
recipients from divulging information within the scope of patent protection. The party at-
fault shall be liable for breach of contract. In addition in order to improve patent
management level TCL CSOT has set up a patent management system which
electronically manages the entire life cycle of patent applications from ideation proposal
management and patent application to authorization maintenance and agency
100management which greatly improves the management of patent application process.
TCL Zhonghuan Intellectual Property Protection
TCL Zhonghuan attaches great importance to the protection of intellectual property rights
and sets up a dedicated team to be responsible for patent issue. The company
establishes a patent management system and forms effective work procedures. In
addition the company increases capital and human investment in intellectual property
protection work and strives to increase the number and quality of independent
intellectual property rights. TCL Zhonghuan establishes an effective patent layout on core
technologies and basic products forming a reasonable patent layout dominated by core
invention patents and based on utility model patents.
101Future Outlook
Standing at the new era of the 40th anniversary in 2022 TCL TECH will gather strength
and forge ahead. Led by technology and driven by innovation we will continue to go
uphill with full speed catch up and surpass transform and break through until reaching a
new level
In the coming year TCL TECH will still bear the spirit of "courage innovation
perseverance change and vision" improve strategy and implementation capabilities
build a new development pattern and resolutely seize market opportunities though with
fierce competition. We long for transforming technological capabilities into business
performance. We have strong belief in globalization strategy and will continue to cultivate
new business models and explore new tracks. TCL TECH will focus on semiconductor
display new energy photovoltaic and semiconductor materials develop industrial finance
and investment O2O business of Highly Information Industry (Highly) to stablize growth
of industrial financial services and investment return. Empowering industrial development
with finance it helps accelerate the Group transformation towards technology and
intelligent industry."Carbon peaking and carbon neutrality goal" strategy is an important transformation
strategy for China's future development and the only way to address global climate
change. Full support to green development is also an eternal theme of TCL TECH. TCL
TECH shall fully implement the "carbon peaking and carbon neutrality goal" strategy
transform and respond to the overall business and operations based on the
environmental challenges it may face in the future. In addition we will formulate a stricter
environmental supervision system to minimize risks continuously improve the
environmental management system and accelerate the construction of green factories.TCL TECH will further improve energy efficiency and water recycling reduce waste
discharge to ensure compliance with discharge standards and continue to reduce
pollutant discharge. Employees’ environmental protection awareness will be
strengthened by building a green clean and beautiful environment.Sustainable and stable operation is the cornerstone of the company's sustainable
development. TCL TECH will continue to strictly abide by the bottom line of compliance
build an ethical system to prevent corruption and continue to carry out anti-fraud
initiatives to ensure fair operation. To cope with uncertainty of information security risks
TCL will continue to enhance the organizational structure of data security and improve
data security management system. In order to drive the implementation of China's
intellectual property leading power strategy TCL TECH will also continue to explore the
field of intellectual property protection and use innovative methods to resolve intellectual
property disputes.For employees TCL TECH will ensure an equal healthy and safe working environment
formulate a combined online and offline training agenda upgrade promotion channels to
102for clear career development path and meet company's talent needs. For the industrial
chain TCL TECH will stick to responsible procurement practices and continue to provide
various support for ecosystem partners for the sustainable development of the industry.For the community TCL TECH will continue conduct public welfare and charity projects to
support community development create better homes for more people.The year of 2022 is the significant starting year for China to embark on the journey to
common prosperity. With the goal of "continuously improve people’s livelihood and well-
being and solidly promote common prosperity" stated in the 14th Five-Year Plan centralgovernment encourages all walks of life to play a “gentle role" in the third distributionvigorously advocate charitable donations and promote social fairness and social justice.We would also like to light up a candlelight to illuminate those in distress. Small things
can make a big difference and eventually form a river of hope. TCL TECH will continue to
invest in public welfare projects build a public welfare platform and join hands with
relevant stakeholders to build lovely dreams and empower the future.Looking forward as a high-tech manufacturing company we are still facing severe
challenges. However we are more certain and confident because of current situation.The era of future is still the era of fighters. We were born in a prosperous time and we
should live up to this prosperous age. Every one of us should make our efforts and let us
strive for each day and live up to our youth for our better future!
103Honors and Awards
Award
Number Awards Issuing Time Certification
Organization
2021 Top 60 China
Committee of
Corporate Citizen
China
1 & Social 2021/07
Corporate
Responsibility
Citizen
Brand
Organizing
CSR China
Committee of
TOP100 of CSR
2 CSR China 2021/12
China Education
Education
Award in 2021
Award
2021 Top 10
The Chinese
Private Enterprises
Academy of
3 of China CSR 2021/12
Social Sciences
Development
(CASS)
Index
Four Star of
Governance Level China
of Electronics Electronics
Industry CSR Standardization
Evaluation in 2020- Association
2021
104Key Performance
Indicator Performance
Operating income (Hundred million RMB) 1635.4
Net profit (Hundred million RMB) 149.6
Tax payable (Hundred million RMB) 92.1
Net assets return ratio 26.5%
Economy
Asset-liability ratio 61.2%
R&D investment (Hundred millions RMB) 87.7
Number of R&D personnel (Persons) 10517
Number of patents authorized (Items) 17636
Environmental accidents (Times) 0
Environmental Investment (Ten thousands of RMB)3
59452
Energy consumption (Ten thousand kWh)4 992942
Environment Reduced energy consumption (Ten thousand kWh)5 -271627
Greenhouse gas emissions (Ten thousand tons)6 827.1
Total water consumption volume (Ten thousand cubic
7124
meters) 7
Total water saving (Ten thousand cubic meters)8 4533
3
Environmental investment include: Huizhou CSOT TCL CDOT Shenzhen CSOT Wuhan CSOT
Suzhou CSOT TPC TCL Zhonghuan.Energy consumption statistics include: Huizhou CSOT TCL CDOT Shenzhen CSOT Wuhan CSOT
Suzhou CSOT TCL Zhonghuan.Reduced energy consumption and changes in greenhouse gas emission reductions are due to the use
of new equipment. The Group insists on improving energy efficiency.Greenhouse gas emission statistics include: Shenzhen CSOT Wuhan CSOT Suzhou CSOT TCL
Zhonghuan. Greenhouse gas emissions include Scope 1 and Scope 2 and some data are self-
inspected by the Company.Total water consumption statistics include: Huizhou CSOT TCL CDOT Shenzhen CSOT Wuhan CSOT
Suzhou CSOT TPC TCL Zhonghuan.Total water saving statistics include: Huizhou CSOT TCL CDOT Shenzhen CSOT Wuhan CSOT
Suzhou CSOT TPC.
105Total discharge of waste gases (Ten thousand cubic
9 3802572 meters)
Total discharge of waste water (Ten thousand tons)10 4598
Total discharge of hazardous wastes (Tons)11 26087
Waste recycled (Tons)12 107375
Major information safety incidents (Times) 0
Total number of employees (Persons) 65159
Percentage of employees who have signed labor contracts 100%
Number of overseas employees (Persons) 8937
Number of domestic employees (Persons) 56222
Number of employees with disabilities(Persons) 22
Proportion of female executives 22%
Society Total number of trainees (Persons)13 70370
Total training hours (Hours)14 2209636
Total investment in employee training (Ten thousand
14 1757.9 RMB)
Investment in safety production (Ten thousand RMB)15 10674.85
Major safety incidents (Times) 0
Number of employees received safety trainings (Person
583710
times)
Total public welfare donations (Ten thousand RMB) 4954.6
Total waste gas emission statistics include: Huizhou CSOT TCL CDOT Shenzhen CSOT Wuhan
CSOT Suzhou CSOT TPC TCL Zhonghuan.Total discharge of waste water statistics include: Huizhou CSOT TCL CDOT Shenzhen CSOT
Wuhan CSOT Suzhou CSOT TPC TCL Zhonghuan.Total discharge of hazardous wastes statistics include: Huizhou CSOT TCL CDOT Shenzhen CSOT
Wuhan CSOT Suzhou CSOT TPC TCL Zhonghuan.Total discharge of wastes statistics include: Huizhou CSOT TCL CDOT Shenzhen CSOT Wuhan
CSOT Suzhou CSOT TPC TCL Zhonghuan.Total number of trainees’ statistics are from T Academy CSOT Academy Suzhou CSOT and TCL
Zhonghuang.Total investment in employee training include: T Academy CSOT Academy and Suzhou CSOT.Investment in safety production include Total number of trainees statistics are from Huizhou CSOT
Shenzhen CSOT Wuhan CSOT and Suzhou CSOT.
106Employee volunteer activities (Times) 18
Number of employee volunteers (Persons) 1248
107Reporting Index
* Supporting the United Nations Sustainable Development Goals (SDGs)
Goals Contents Actions
Goal 1 No poverty Rural revitalization and education
equality
Goal 2 Zero hunger Reduce hunger through rural
revitalization and education equality
Goal 3 Good health and well-being Healthy and safe products and
caring for employees’ wellbeing both
mentally and physically
Goal 4 Quality education Employee training school-enterprise
cooperation and education equality
Goal 5 Gender equality Equal employment and caring for
female employees
Goal 6 Clean water and sanitation Water resources protection
Goal 7 Affordable and clean energy Photovoltaic power generation
Goal 8 Decent work and economic Diverse and inclusive working
growth environment reasonable salaries
and benefits
Goal 9 Industry innovation and Product innovation and R&D
infrastructure
Goal 10 Reduced inequalities Education equality
Goal 11 Sustainable cities and Energy-saving and emission
communities reduction measures
Goal 12 Responsible consumption and Green production green package
production and establish recycling system
Goal 13 Climate action Energy-saving and emission
reduction measures Photovoltaic
power generation
Goal 14 Life below water Reducing pollutant emission and
protecting the ecological
Goal 15 Life on land environment
Goal 16 Peace justice and strong Compliance with laws and
institutions regulations anti-monopoly and anti-
108unfair competition
Goal 17 Partnerships for the goals Mutual development with industry
chain partners
109* Hong Kong Stock Exchange ESG Guide
Pages/Explainatio
Item General Disclosures and KPIs
n
A. Environment
General Disclosure: Information on the policies and
compliance with relevant laws and regulations that
have a significant impact on the issuer relating to air 26，35
and greenhouse gas emissions discharges into
water and land and generation of hazardous and
non-hazardous waste.A1.1 The types of emissions and respective
29
emissions data.A1.2 Direct (Scope 1) and energy indirect (Scope 2)
greenhouse gas emissions in total (in tonnes) and
29
where appropriate intensity (e.g. per unit of
production volume per facility).Aspect A1:
Emissions A1.3 Total hazardous waste produced (in tonnes)
and where appropriate intensity (e.g. per unit of 30
production volume per facility).A1.4 Total non-hazardous waste produced (in
tonnes) and where appropriate intensity (e.g. per 30
unit of production volume per facility).A1.5 Description of emission target(s) set and steps
31
taken to achieve them.A1.6 Description of how hazardous and non-
hazardous wastes are handled and a description of
30
reduction target(s) set and steps taken to achieve
them.General Disclosure: Policies on the efficient use of
resources including energy water and other raw 26
materials.A2.1 Direct and/or indirect energy consumption by
type
Aspect A2:
Use of (e.g. electricity gas or oil) in total (kWh in ’000s) 28-30，103-104
Resources and
intensity (e.g. per unit of production volume per
facility).A2.2 Water consumption in total and intensity (e.g.
31，103-104
per unit of production volume per facility).
110A2.3 Description of energy use efficiency target(s)
set and steps taken to achieve them.A2.4 Description of whether there is any issue in
sourcing water that is fit for purpose water
31
efficiency target(s) set and steps taken to achieve
them.A2.5 Total packaging material used for finished
products (in tonnes) and if applicable with 103-104
reference to per unit produced.General Disclosure: Policies on minimising the
Aspect A3: issuer's significant impacts on the environment and 31-33
The natural resources.Environment
and Natural A3.1 Description of the significant impacts of
Resources activities on the environment and natural resources 31-33，35-37
and the actions taken to manage them.General Disclosure: Policies on identification and
mitigation of significant climate-related issues which
31-33，35-37
have impacted and those which may impact the
Aspect A4: issuer.Climate
Change A4.1 Description of the significant climate-related
issues which have impacted and those which may
31-33，35-37
impact the issuer and the actions taken to manage
them.B. Social
Employment and Labour Practices
General Disclosure: Information on: the policies and
compliance with relevant laws and regulations that
have a significant impact on the issuer relating to
compensation and dismissal recruitment and 60
promotion working hours rest periods equal
opportunity diversity anti-discrimination and other
Aspect B1: benefits and welfare.Employment
B1.1 Total workforce by gender employment type
(for exampe full- or part-time) age group and 60
geographical region.B1.2 Employee turnover rate by gender age group
60
and geographical region.General Disclosure: Information on: the policies and
Aspect B2: compliance with relevant laws and regulations that
Health and have a significant impact on the issuer relating to 64-65
Safety providing a safe working environment and protecting
employees from occupational hazards.
111B2.1 Number and rate of work-related fatalities
occurred in each of the past three years including 64
the reporting year.B2.2 Lost days due to work injury. 64
B2.3 Description of occupational health and safety
measures adopted and how they are implemented 64-67
and monitored.General Disclosure: Policies on improving
employees' knowledge and skills for discharging 67-77
duties at work. Description of training activities.Aspect B3:
Developmen B3.1 The percentage of employees trained by
t and gender and employee category (e.g. senior 67-77
Training management middle management).B3.2 The average training hours completed per
employee by gender and employee category.General Disclosure: Information on the policies and
compliance with relevant laws and regulations that
60
have a significant impact on the issuer relating to
preventing child and forced labour.Aspect B4:
Labour
B4.1 Description of measures to review employment
Standards 60
practices to avoid child and forced labour.B4.2 Description of steps taken to eliminate such
60
practices when discovered.Operating Practices
General Disclosure: Policies on managing
56
environmental and social risks of the supply chain.B5.1 Number of suppliers by geographical region. 56
B5.2 Description of practices relating to engaging
suppliers number of suppliers where the practices
56
Aspect B5: are being implemented how they are implemented
Supply and monitored.Chain
Managemen B5.3 Description of practices used to identify
t environmental and social risks along the supply
56
chain and how they are implemented and
monitored.B5.4 Description of practices used to promote
environmentally preferable products and services
56
when selecting suppliers and how they are
implemented and monitored.
112General Disclosure: Information on the policies and
compliance with relevant laws and regulations that
have a significant impact on the issuer relating to
50
health and safety advertising labelling and privacy
matters relating to products and services provided
and methods of redress.B6.1 Percentage of total products sold or shipped
50
Aspect B6: subject to recalls for safety and health reasons.Product
Responsibilit B6.2 Number of products and service related 55
y complaints received and how they are dealt with.B6.3 Description of practices relating to observing
and protecting intellectual property rights.B6.4 Description of quality assurance process and 50，54
recall procedures.B6.5 Description of consumer data protection and
privacy policies how they are implemented and 55，96
monitored.General Disclosure: Information on the policies and
compliance with relevant laws and regulations that
have a significant impact on the issuer relating to
bribery extortion fraud and money laundering.B7.1 Number of concluded legal cases regarding
corrupt practices brought against the issuer or its
Aspect B7: 95-96
employees during the reporting period and the
Anti-
outcomes of the cases.corruption
B7.2 Description of preventive measures and
whistle-blowing procedures how they are 95-96
implemented and monitored.B7.3 Description of anti-corruption training provided
to directors and staff.Community
General Disclosure: Policies on community
engagement to understand the needs of the
communities where the issuer operates and to 81
ensure its activities take into consideration the
communities' interests.Aspect B8:
Community
B8.1 Focus areas of contribution (e.g. education
Investment
environmental concerns labour needs health 81
culture sport).B8.2 Resources contributed (e.g. money or time) to
the focus area.
113* GRI Standard Index
Content GRI Standard
About This Report GRI-102
Message from Leaders Message from Chairman GRI-103 GRI-201 GRI-
203
Message from Director of GRI-102
CSR Innovation Center
About TCL TECH Company Overview GRI-102
Historical Events for the GRI-102
Past 40 Years
Honors and Economic GRI-102
Achievements in 2021
Corporate Culture GRI-102
Corporate Strategy GRI-102
ESG Management ESG Strategy GRI-101 GRI-102
Development
ESG Communication GRI-101 GRI-102
Promotion and Trainings
ESG Risk Monitoring GRI-101 GRI-102
ESG Materiality Analysis GRI-101 GRI-102
Stakeholder Engagement GRI-102
Environment: Energy Saving Green Production GRI-301 GRI-302 GRI-
and Emission Reduction for a 303 GRI-305 GRI-306
Greener Home
Green Industry Chain GRI-301 GRI-302 GRI-
303 GRI-305 GRI-306
Green Product GRI-301 GRI-302 GRI-
303 GRI-305 GRI-306
Green Culture GRI-301 GRI-302 GRI-
303 GRI-305 GRI-306
Society: Continuous Research and Innovation GRI-102 GRI-203
Shoulder Innovation to
Responsibility Lead Talents for Cooperation GRI-102 GRI-203
for Technology
Continuous Transformation Innovative Products and GRI-102 GRI-203
114Value Application
Creation
Pursuit of Quality Management GRI-102 GRI-203
Excellence to System
Ensure Product
Quality Quality Management GRI-102 GRI-203
Training
Intelligent Manufacturing GRI-102 GRI-203
Product Safety GRI-102 GRI-203
Customer Service GRI-102 GRI-416
Inclusion and Supply Chain GRI-102 GRI-308 GRI-
Co-Creation for Management 414
Shared Value
Conflict Materials GRI-308
Management
Joint Development with GRI-203
Industry Partners
Cordial Protection of Employee GRI-102 GRI-401 GRI-
Worksplace Rights 405 GRI-406 GRI-408
Environment to GRI-409
Grow with
Employees Employee Diversity and GRI-404
Equal Opportunities
Occupational Health and GRI-403 GRI-413
Safety
Employee Development GRI-404
Employee Care GRI-404
Contributing to TCL Foundation GRI-203
Society and
Engaging in Huameng Foundation GRI-203
Community
Service Build Harmonious GRI-413
communities
Employee Volunteer GRI-203 GRI-413
Activities
Governance: Well-Established GRI-102 GRI-205 GRI-
Excellent Governance Structure 206 GRI-419
Governance Corporate
to Compliance Comprehensive GRI-102 GRI-205 GRI-
Consolidate Management Institutional Guarantee 206 GRI-419
the
Foundation of Smooth Communication GRI-102 GRI-205 GRI-
115Operation Mechanism 206 GRI-419
Protection of GRI-102
Investors’
Rights and
Interests
Compliance Operation GRI-102 GRI-205 GRI-
206 GRI-419
Compliance
Operation and Risk Management GRI-102 GRI-205 GRI-
Fair 206 GRI-419
Competition
Fair Competition GRI-102 GRI-205 GRI-
206 GRI-419
GRI-102 GRI-205 GRI-
Anti-Corruption
419
Information GRI-102 GRI-205 GRI-
Security 206 GRI-419
Protection
Intellectual GRI-418
Property
Protection
Future Outlook GRI-102
Key Performance GRI-102 GRI-201 GRI-
203 GRI-301 GIR-302
GRI-303 GRI-305 GRI-
306 GRI-401 GRI-405
GRI-418
Reporting Index GRI-102
Reader Feedback GRI-102
116Reader Feedback
Dear readers
Thank you very much for reading the TCL Technology Group Corporation
Environmental Social and Governance Report 2021. We sincerely look forward to your
feedbacks and valuable opinions on this report so that we can continue to improve our
work and level of disclosure. We will read carefully your feedback and accept our
heartfelt appreciation!
You can choose the following ways to give us your feedback:
Telephone:0755-8600 1706
Mailing Address: Corporate Social Responsibility Innovation Center of TCL Technology
Group Corporation 9th Floor Building G1 TCL International E City 1001
Zhongshanyuan Road Nanshan District Shenzhen Guangdong
E-mail: csr@tcl.com
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Open Question:
Your valuable opinions and suggestions on TCL Technology Group Corporation
Environmental Social and Governance Report 2021 are most welcomed:
TCL Technology Group Corporation
Address: TCL International E City 1001 Zhongshanyuan Road Nanshan District
Shenzhen Guangdong
Telephone: 0755－8600 1706
Website: www.tcltech.com
E-mail: csr@tcl.com
117