2022 Environmental
Social and Governance (ESG)
Report of Appotronics
05
2022 Environmental Social and Governance (ESG) Report of Appotronics 2023.4APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Content About the Report
Brief Introduction
About the Report 02 Innovation leads the vigorous 55
development of the industry This report is the environmental social and governance ( “ESG” ) report released by Appotronics Corporation Limited (" Appotronics " "Com-pany" or "We" stock code: 688007. SH) for the year 2022. It is also the fourth non-financial information report of the Company since its
Promote synergistic progress in the industry 57 listing reflecting the practice and performance of the Company and its subsidiaries in terms of ESG.Preface 03 Expand the social influence of products 61
Chairman Statement 05 Reporting period
Sustainable development 07 This report is an annual report covering the financial year from January 1 2022 to December 31 2022 ("Reporting period") and some related
Outstanding ESG performance 07 Company employees growing 63 information may be traced beyond the reporting period.Appotronics and SDGs 13 together
Reporting Scope
Approaching Appotronics 14 Safeguard employee rights and communication 65
Support employee development 71 The policies and data provided in this report cover our Company and its subsidiaries and the scope of the report is consistent with the
annual report. Unless otherwise specified all currencies involved are RMB. The data and cases in this report mainly derive from our Compa-
Sustainable R&D Innovation 17 Ensure employee safety 75 ny's statistical reports and related documents.Maintain technological leadership 19 Compilation Basis
Protect intellectual property rights 23 Reliable environmental and 79
climate management This report is based on the Global Reporting Initiative ( “GRI Standards” ) issued by the Global Sustainability Standards Board ( “GSSB” ) and Innovation faciliates energy conservation
and emission reduction 24 the China Corporate Social Responsibility Report Guidelines (CASS-ESG 5.0) in accordance with Appendix 27 of the Listing Rules of the StockDisclosure of climate information 81 Exchange of Hong Kong Limited Environmental Social and Governance Reporting Guidelines “Recommendations Report on Climate Relat-Inherit excellent culture 25Environmental management system 83 ed Financial Information Disclosure” by the Task Force on Climate-Related Financial Disclosure( “TCFD” ) and the United Nations’ Sustainable
Development Goals ( “SDGs” ). At the same time it complies with relevant opinions and guidelines such as the "Code of Corporate Gover-
Responsible ESG management 27 nance for Listed Companies" the"Self-regulatory Guidelines for Listed Companies on the Shanghai Stock Exchange’ s Sci-Tech Innovation
Resilient and sustainable 89 Board ( “STAR” ) No. 1- Standardized Operation" the "Rules Governing the Listing of Stocks on Shanghai Stock Exchange’ s Sci-Tech Innova-Improve ESG governance 29 procurement tion Board " and the " Guidelines for the Compilation of Social Responsibility Reports" (GB/T36001).The report also meets the relevant opin-
Identify stakeholders 29 ions and guidelines of the Shanghai Stock Exchange's "Guidelines for Environmental Information Disclosure of Listed Companies" and
ESG topics identification 31 Responsible supply chain 91 "Report on Corporate Social Responsibility".Take ESG Actions 33 Conflict Minerals 92
Data Source and Reliability
All data and contents have been reviewed by the Company's management before the release of this report. We promise that there are no
Diversified corporate governance Influential social welfare35 93 false records misleading statements or significant omissions in the materials of this report and will assume individual and joint responsibil-
structure Pay attention to ural revitalization 95 ities concerning the objectivity and authenticity of its contents.Popularize science and technology actively 97
Strengthen corporate governance 37 Appotronics ESG Email: csr@appotronics.cn Looking forward to your feedback and suggestions.Jointly fight the COVID-19 watch out for and
Adhere to integrity and compliance 40 For more information please visit:https://www.appotronics.com/shehuizeren.html help each other 98
Emphasize digital construction 43
Contact information
Appendix 99 Address: 20-22/F High-Tech Zone Union Tower No.63 Xuefu Road
Safe and reliable products 45 Nanshan District Shenzhen Guangdong Province
GRI Index 99
Optimize quality management 47 Website: www.appotronics.com
Adhere to responsible marketing 52 Tel: +86 0755 - 3295 0000
Safeguard information security 54 Feedback 104 Email: csr@appotronics.cn
PAGE 01/02APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
01
Preface
PAGE 03/04APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Chairman Statement
“Uncertain times” so says the Human Development Report of the United Nations in tion. Statistics show that 27700 sets of Advanced Laser Phosphor Display ( “ALPD” ) laser projection solutions have been installed in China
September 2022 about the current status of human development. The report also running about 236 million hours in total saving about 425 million kilowatt hours of electricity and effectively reducing carbon dioxide emis-
underscores that innovation will be the core of successfully addressing many unforesee- sions by about 186 million cubic meters.able and unknown challenges in the future.In promoting industrial progress we a leader in the laser display industry apply world-class standard work experience and are committed
We deeply realize that only when we develop ourselves can we address multiple exter- to leading and promoting the healthy and sustainable development of the industry. In 2022 we participated in the development of 10 inter-
nal uncertainties that is we must adhere to technological innovation and pursue sus- national standards 9 national standards 22 industry standards and 8 group standards and obtained 4 national enterprise standard "leader"
tainable and high-quality development. certifications and 6 Shenzhen standard certifications.Looking back we having been keeping a pulse on technology innovation every step of Regarding rural revitalization we provided first-hand assistance by directly purchasing agricultural products from Qianxi townships in
the way which is also the optimal choice for listed companies to pursue high-quality Guizhou province and helped cultural empowerment stimulate rural vitality through introducing in-house developed technology and hard-
development. The ESG reports voluntarily released by STAR enterprises as a response ware into rural areas popularizing aerospace knowledge disseminating excellent traditional culture and serving young entrepreneurs. In
to non-financial indicators of the environment society and corporate governance also addition we donated laser screens worth RMB1.2597 million to multiple medical institutions through the Health Commission of Shenzhen
provide more opportunities for technology-based enterprises to be seen. Municipality for family education of medical staff's children expressing our respect for their fights against the COVID-19 pandemic.Firstly we are pleased that our ESG work in 2022 has been recognized by various sectors As for supporting employee development we adhere to the "people-oriented" principle and have established a transparent fair and inter-
of society earning the "Chunhui Action Contribution Award" by the Organization active corporate culture through organizing CEO face-to-face communication meetings fresh graduate exchange meetings and other activi-
Department of the Guizhou Province the A-level rating given by Wind ESG and the ties. We also organize diverse team building and club activities to stimulate employee vitality and creativity release stock incentive plans
Cailian Press Social Responsibility Pioneer Enterprise Award. At the same time we have LI Yi Chairman and CEO of Appotronics gather corporate strategic consensus and live up to every employee who actively contributes to the Company.made great efforts in environment society and governance with typical achievements as below:
When it comes to the environmental management we refer to the TCFD’ s initiatives to assess the potential risks brought by climate
In terms of technological innovation we always adhere to the long-term principle of high investment. In 2022 our R&D investment reached change plan ahead to respond and seize the development opportunities that climate change may bring actively responding to the national
RMB262 million accounting for 10.31% of revenue. We have 521 R&D personnel accounting for 31.83% of the Company's total employees. carbon peaking and carbon neutrality goals. In 2022 our environmental indicators met the standards by third-party professional testing
The Company have had 1773 patents filed or granted cumulatively around the globe of which 966 patents have been granted alongside a institutions. After production optimization the average water and electricity consumption per product produced by our factory throughout“National Intellectual Property Exemplary Enterprise " award. Breakthroughs have been made in automotive optics AR optical modules the year continued to decrease.ALPD 5.0 zero-back focus technology intelligent robot fusion and others continuous contributions to the society in terms of technological
innovation in the laser display field. With regards to corporate governance we have established a diversified governance structure optimized the "three meetings and one
layer" operating mechanism and promoted the continuous optimization of corporate governance efficiency. We received honors such as the
A new entrant to the auto industry we have relied on our years of deep accumulation in the field of optics to quickly complete the imple- Golden Bull Award for Investor Relations Management the Best Listed Company Board of Directors and the Best Shareholder Relations
mentation of our automotive optics business a one-year achievement ranging from obtaining the IATF 16949:2016 international quality Award.management system certification to obtaining the designation statuses by domestic and international well-known enterprises such as BYD
an international car company and SERES. BMW's i Vision Digital Emotional Experience (Dee) globally debuted this year is equipped with ESG practice has gradually been integrated into all aspects of our work. Going forward we will be committed to utilizing core laser technol-
the core components provided by Appotronics marking the successful global debut of four-window fusion display technology. At the 20th ogy to create a better life experience for people and create better long-term value for our stakeholders.Shanghai Auto Show we first launched our demonstration automotive equipped with an immersive laser display and lighting technolo-
gy scene alongside the world's first standard color laser headlights as well as immersive digital interaction solutions for car windows
transparent interior display interior entertainment screen and smart surfaces. We are working together with industry chain ecological
partners to create a new intelligent car experience for consumers through three major product lines: automotive display HUD and laser
headlights. With the rapid development of AI technology represented by ChatGPT and the iterative progress of intelligent cabins the
immersive digital experience space of intelligent cars supported by core components of Appotronics will become more creative and imagina-
tive.Li Yi
What makes us even more proud is that our innovative technology can effectively contribute to energy conservation and emission reduc- April 2023
PAGE 05/06APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Other major honors
Sustainable development Award date Award Issuer Award name
January Human Resources and Social Security Bureau of Shenzhen Enterprise Postdoctoral Workstation
Shenzhen Municipality Substation
January State Administration for Market 2021 Enterprise Standard "Leader"
New Light New Life. Appotronics is committed to utilizing core laser technology to create a better life experience for people and create Regulation
better long-term value for our stakeholders.January Industry and Information Technology Bureau
Shenzhen Innovative Product Application Promotion
of Shenzhen Municipality Catalog - DLP Laser High Definition Ultra Short Focus
Commercial Education Projector AL-DUH610
Shenzhen Innovative Product Application and Promo-
January Industry and Information Technology Bureau of tion Catalog - Laser Highlight Project Projectors
Shenzhen Municipality
AL-TU26K AL-TU33K
Outstanding ESG performance Shenzhen Electronic Equipment Industry
Association
January Shenzhen Advanced Manufacturing Pioneer Award
Shenzhen Intelligent Equipment Industry
Association
ESG honors
February Beijing Bureau of Economy and Information Beijing Specialized and Innovative Small and
Technology Medium-size Enterprises(CINEAPPO)
May Guangzhou Guangya Academy of The 10th ALight Award in 2022- Best Award
Light Research (Appotronics AL-TU33K Project Projector)
June People’s Government of Guangdong Province The 9th Guangdong Excellence Patent Award
July China National Intellectual Property The 23rd China Patent Excellence Award
Administration
July Shenzhen Administration for Market Shenzhen Standard Certification for Intelligent Display
Regulation Terminal Products
Wind ESG A-level rating August Technischer überwachungs-Verein Witness Test Laboratory qualification
September Southern Metropolis Daily Greater Bay Area New Industry Emerging Award
October China National Intellectual Property National Intellectual Property
Administration Demonstration Enterprise
November Times Media Group Brand Value Communication Award
December Gaogong Intelligent Automotive Industry Annual Intelligent automotive Industry Chain
Institute Innovation Technology Award
Shenzhen Electronic Equipment Industry Association
December 2022 Shenzhen Advanced Manufacturing Industry "Red
Shenzhen Intelligent Equipment Industry Association Sail Award"
Shenzhen Administration for Market Regulation
Guizhou Province "Chunhui Cailian Press Social Responsibility National Business Daily Qingxin 2022 Bureau of Civil Affairs of Shenzhen Municipality
Action Contribution Award" Pioneer Enterprise Award Green Practice Pioneer-shortlisted December Shenzhen Performance Excellence Management 2022 "Outstanding Innovation Award"
Foundation
Shenzhen Quality Innovation Technology Alliance
PAGE 07/08APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Award date Award Issuer Award name Social Performance:
December Roadshow China’s IR unit Best Shareholder Relations Award
Total number of Female employees Female employees
employees
December China Video Industry Association Technology Innovation Award * Technology Award 37.26%
(MF03H Optical Machinery) 1637 610(proportion of total person
person population)
December Public Company Golden Bull Award "2021 Investor China Securities Journal
Relations Management Award"
December National Business Daily Best Board of Directors of Public Companies
Ratio of employees Proportion of R&D investment
signing labor contracts R&D investment
December National Business Daily Outstanding Brand Cases of Chinese Public 262
Companies in 2022 100% 10.31% million yuan
Best Practices for the 2021 Annual Report Perfor-
December China Association for Public Companies
mance Explanation Meeting of Public Companies
Key data indicators
R&D personnel Public welfare
Financial highlights: Unit: yuan Currency: RMB R&D personnel
52131.83
donation
%
(proportion of total 1.3577
person population) million yuan
2.541 billion yuan 119 million yuan
2022 Revenue Net profit attributable to shareholders
of parent company
Global cumulative Global cumulative
patent applications and patent applications and
authorized patents authorized patents
65 million yuan 0.26 yuan/share 2629 Up8.68%
items compared with
Net profit after extraordinary gains last yearEarnings per share
and losses
PAGE 09/10APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Governance performance:
Number of social Number of social
Total training duration responsibility/ESG responsibility/ESG
17673 training sessions training sessions 11 11 4 7time time time time
hours 3 32
time person-time
Number of board Number of meetings of the Number of shareholders' Number of audit committee
meetings held supervisory board meetings held meetings
Reception and visit
of science popular- Safety hazard Responsible
ization base elimination rate procurement
100100%100%1427
person-time time time time time
Environmental indicators:
Number of meetings of Number of meetings of the Number of meetings of the Number of directors
the strategy and compensation and perfor- nomination committee
investment committee mance assessment committee
Helping cinema partners Helping cinema partners
reduce carbon dioxide save power
emissions
186 425million kilowatt million cubic meters hours of electricity 3 3 260+ 600+
person person time person-time
Compliance rate of various Percentage decrease in
emission indicators in the water consumption per
production process product produced Number of independent Number of supervisors Number of investor communica- Number of participants in investor
100% 56.67 directors tion related activities (road- communication related activities% shows conference calls etc.)
Percentage decrease in
electricity consumption per Male proportion on 85.71 Proportion of women on product produced the board of directors % the board of directors 14.29%
29.39%
PAGE 11/12APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Appotronics and SDGs Approaching Appotronics
Appotronics Supports the United Nations’ SDGs
In 2022 Appotronics integrated the requirements of the United Nations Sustainable Development Goals and China’ s National Plan on Imple-
mentation of the 2030 Agenda for Sustainable Development in terms of ESG management. Based on the actual development situation
Appotronics selected 13 United Nations sustainable development goals to formulate policies and actively took actions.Influential community welfare
Influential community welfare Influential community welfare
Company employees growing together Influential community welfare
Reliable environmental and climate
management
Company employees growing Sustainable R&D Innovation
together
Safe and reliable products
Influential community welfare
Innovation leads the vigorous develop-
ment of the industry
Reliable environmental and climate
Responsible ESG management management
Diversified corporate governance Resilient and sustainable procurement
Company employees growing together
Reliable environmental and climate
Company employees growing management
together
Responsible ESG management
Sustainable R&D Innovation Diversified corporate governance
Safe and reliable products
Innovation leads the vigorous
development of the industry Innovation leads the vigorous development of the industry
Resilient and sustainable procurement
PAGE 13/14APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Company profile Development history 2022
Founded in 2006 Appotronics is a leading technology company in the laser display field with in-house R&D patented core technology and Appotronics passed the
critical components manufacturing capabilities. International Automotive
Task Force( “IATF” ) certi-
Listed on the STAR market in 2019 Appotronics is one of the first listed on the bourse and remains the first SSE STAR Market listed compa- fication
ny in Guangdong Province and the first A-share listed company in the laser display field. The Company a world-leading laser display enter- 2021 Released the world's first
prise continuously integrating the laser display technology with the latest technologies such as human-computer interaction intelligent
commerc ia l AR opt i ca l
recognition Internet of Things cloud platforms and big data has completed forward-looking layout positioning in new application fields Appotronics reached
m o d u l e w i t h a P P I i n
such as automotive optics aviation display and AR and has conducted deep cooperation with multiple well-known brands and institutions agreement with Airbus
excess of 10000
around the world such as leading new energy car companies and aviation giant Airbus. With the growth of each trillion-worth market seg- to explore new appli-
ment the Company a core component supplier upstream will inevitably jointly usher in an explosion. c a t i o n s c e n a r i o s o f B e c a m e a s u p p l i e r o f
laser display through on-board optical compo-
In addition the Company has taken the lead in undertaking national key research projects collaborating with 12 entities such as the Chinese innovative business. nents for BYD an inter-
Academy of Sciences Beijing Institute of Technology Sun Yat-sen University Zhejiang University and TCL to promote the development of 2019 U p w a r d s o f 2 5 0 0 0 n a t i o n a l c a r co m p a n y
national laser display technology jointly driving the laser industry chain and creating a strong laser industry ecosystem. Appotronics made d o m e s t i c l a s e r fi l m and SERES.its debut as one of projection equipment
So far the Company has been awarded the honors including National High-tech Enterprise National Intellectual Property Demonstration the first SSE STAR were installed
Enterprise and National Enterprise Standard “Leader” as well as STAR Hard Technology Leading Enterprise among others. M a r k e t l i s t e d
companies
Appotronics New LightNew Life!
2018
Appotronics cooperat- 2017
e d w i t h X i a o m i t o Appotronics released China’s first
l a u n c h t h e w o r l d ' s laser digital cinema projector C5
first laser TV priced at satisfying the requirements of
Automotive Optics Aviation Display AR Intelligent Robot less than RMB 10000 the DCI standard
2015
The wor ld ’ s first ALPD
l aser pro jec tor sett led in
Vision and mission Shenzhen which is still run-ning stably at present
2013
New LightNew Life
2006 2007 I t cooperated 2014
On the global lighting market Appotronics gets to leverage its original core technology to apply core devices to a wide range of new fields I t s u c c e s s f u l l y w i t h L G t o Appotronics coop-
M r . L I Y i t h e
and segments attracting customers partners investors employees etc. from around the world to move forward with the Company. At d e v e l o p e d t h e l a u n c h t h e erated with CFGC
founder of Appo-
present its laser technology has been applied in fields such as cinema household use engineering education and automotive transporta- w o r l d ’ s fi r s t wor ld ’ s first a n d B a r c o t o
tronics (chairman
tion. With the continuous integration and development of optics aviation AR human-computer interaction and the Internet of Things ALPD laser dis- laser TV explore application
and CEO of Appo-
more and more application scenarios will emerge related to Appotronics. Going forward Appotronics will surely create a better life experi- play technology scenarios for laser
t r o n i c s ) e s t a b -
ence for many people around the world. display.lished Appotronics
in Shenzhen
PAGE 15/16APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
02
05
Sustainable R&D Innovation
PAGE 17/18APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Technology innovation expands application scope
Automotive Display:
Maintain technological leadership and actively The emerging automotive intelligence means new demands for automotive optics spurring innovative applications of laser core technology
influence the industry such as providing driving assistance human-computer interaction experience for passengers and entertainment functions resulting in application scenarios such as roof canopy transparent display of car windows entertainment screen AR-HUD smart surfaces and intelli-
gent laser headlights.Appotronics has seized the application opportunity and carried out research and innovation in the automotive displays laser headlights and
Appotronics has always placed technological innovation at the core of its overall development promoting high-quality development through HUD. It has launched a compact automotive display light machine that meets car specifications featuring high light efficiency wide color
technological innovation. The Company focuses on the transformation of research and development achievements to ramp up industrializa- gamut small size and strong stability. In comparison under the same volume the brightness of the laser display is 1.5 to 2 times that of
tion and makes full use of its technological prowess to actively influence the industry. In 2022 the Company's R&D investment reached RMB traditional displays. In terms of efficiency the required driving power consumption is about half of that of traditional light sources with the
262 million. same brightness yielding functional and energy-saving benefits.
Major R&D achievements in 2022:
Key R&D achievements Technical advantages Achievement translation Small volume a large displaying area Omnipresent display
The optical machine can be as small Information is allowed to be dis-
Small volume large screen enabling seam- as a business card box projecting a played on any surface as along as
Has b een des ignated by mult ip le
Automotive optics application less display ubiquitous display and aug- hundred inch image it is reflective regardless of color
well-known car companies
mented reality display Advantages of Appo- size shape and transparency
tronics's core technol-
ogy automotive appli-
Achieving the maximum visible color gamut
Accelerating commercial integration cations
ALPD 5.0 laser display technology f o r t h e h u m a n e y e o n a s p e c k l e f r e e Traceless displaywith display products Augmented reality display
low-cost efficient and compact basis Separating display devices and display The display content can be integrat-
screens ed into the interior environment
such as dynamic starry sky smart
World's first of its kind to achieve 10000 surfaces etc.PPI with SPD technology the AR optical
AR optical module Supplied in small quantities
module allows for twice the industry aver-
age image clarity in the same volume
Discards the prisms back focus blocks and
other parts that exist in traditional optical
"Zero"back focus machine solution machines thereby minimizing the volume Application development in progress
of the opt ica l machine to the greatest
extent possible
High altitude remote imaging up to 3000
Laser scanning point cloud meters with ultra-high brightness up to Applied in multiple celebration events
100000 lumens
Obtaining IATF certification Providing window display core components for BMW's iVISION Dee at CES 2023
PAGE 19/20APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
ALPD 5.0 technology: Laser scanning point cloud:
On top of its speckle-free and low-cost technolo- Breaking through the restriction of 500 meters
g y t h e c o l o r g a m u t r a n g e i s s i g n i fi c a n t l y distance by the conventional projection technolo-
i n c r e a s e d r e a c h i n g 1 2 0 % R e c - 2 0 2 1 6 5 % gy achieving high-alt itude and long-distance
DCI-P3210% Rec-709 meeting the requirements of imaging up to 3000 meters. At the same time the
the 4K standard for color gamut and enabling the br ightness of a s ing le laser dev ice can reach
maximum visible color gamut to the human eye. 100000 lumens ensuring a clear visual image visi-
ble to the naked eye in clouds of up to a kilometer.Appotronics launches ALPD 5.0 Laser cloud shooting on May Fourth Youth Day
AR optical module: 2.1.2 Actively influence the industry
The world's first AR optical module with a PPI in Appotronics focuses on the needs of national strategic development serves as the leader of major scientific research projects actively par-
excess of 10000 using SPD technology to achieve ticipates in exhibitions of scientific and technological innovation achievements professional forums conferences and other activities orga-
twice the industry average image clarity in the nized by the authoritative institutions in China and beyond actively undertakes national projects formulates domestic and foreign stan-
same volume. This AR optical module is suitable dards participates in international award applications and continues to promote the development of the laser display industry.for AR eyewear terminal products and will be suit-
able for a wider range of usage scenarios moving In 2022 the Company participated in drafting the first domestic laser television industry standard participated in the formulation of the
forward. "White Paper on the Development and Intellectual Property of Laser Display Technology " and obtained Shenzhen standard certification for
intelligent display terminal products.AR optical module rendering of Appotronics SPD technology
The "zero" back focus optical machine solution:
discards the prisms back focus blocks and other parts that exist in traditional optical machines thereby minimizing the volume of the opti-
cal machine. The thickness of the optical machine is nearly equal to the camera module of mainstream mobile phones reduced from the pre-
vious 3cc (cubic centimeters) volume to 1cc or even 0.5cc indicating the possibility for optical machines to enter the mobile phone field.Based on the ultra-small size of optical machinery this technology is also expected to be applied in mobile phones AR automotive and Attends the World Conference on Display Industry
more emerging fields in the future.PAGE 21/22APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Patent applications plus Authorized patents Authorized patents for
authorized patents around around the globe: invention:
Improve R&D management and protect intellec-
the world: 2629 1773 966
tual property rights
national high-tech enterprise
Construction of R&D talent team national intellectual property Guangdong provincial intellectual demonstration enterprise Guangdong Enterprise
Appotronics has a strong R&D team composed of international leaders in the laser display field and outstanding R&D personnel from property demonstration enterprise Key Laboratory
well-known universities at home and abroad covering multiple fields such as optics electronics materials physics mechanical design pre- Guangdong Engineering Technology Shenzhen Postdoctoral
cision manufacturing etc. As of December 31 2022 the Company has 521 research and development personnel accounting for 31.83% of the Research and Development Center Innovation Practice Base
total number of employees of which 26.87% hold master’ s degrees or above providing a solid talent foundation for the Company's techno-
logical innovation. Shenzhen Engineering Technology Shenzhen Engineering
Research Center Research Center
At the same time the Company attaches great importance to cultivating and motivating R&D talents having established a comprehensive
Shenzhen Enterprise Guangdong Doctoral
R&D talent echelon system. By executing skill training plans formulating career development plans and providing generous salaries and
benefits the Company attracts retains and motivates outstanding R&D talents to promote the sustainable development of the enterprise. Technology Center Workstation
Proportion of R&D Total number of Proportion of R&D
R&D investment personnel personnel within the personnel with master's
262 R&D system or doctoral degrees or 31.83 Innovative technology continuous support for million yuan % 521 person 26.87 % energy conservation and emission reduction
Intellectual Property protection
Green science and technology
Pivoting around the core technology Appotroncis continues to carry out global intellectual property layout having established a sound
intellectual property system including the "Patent Management Regulations" "Patent Application Review Measures" "Trademark Manage- Laser currently the brightest and purest artificial light source in the world has advan-
ment Regulations" and other systems related to patents and trademarks in order to ensure the Company's research and development tages that traditional display technologies cannot match such as eye health color per-
achievements protect the Company's intellectual property from infringement and secure the effective development of the Company's vari- formance large screen and energy efficiency. Appotronics fully utilizes the advantages
of light sources and technology to continuously improve product energy efficiency. 20lm/wous production and business activities. Meanwhile the Company also respects the intellectual property rights of others and cooperates with
an open attitude to promote the healthy development of the laser display industry.The Company places special emphasis on achieving environmental protection energy 13lm/w
Thanks to the well-established "patent moat" Appotronics has been recognized as a national high-tech enterprise a national intellectual conservation and low-carbon emission during the R&D and design process. In Novem-
property demonstration enterprise and a Guangdong provincial intellectual property demonstration enterprise since its inception having set ber 2022 the ALPD 5.0 laser display technology with energy efficiency of over 7lm/w
up science and technology research platforms such as the "Guangdong Enterprise Key Laboratory" "Guangdong Engineering Technology 20lm/W was released which is about 100% higher than other light sources allowing 4.2lm/w
Research and Development Center" "Guangdong Doctoral Workstation" "Shenzhen Enterprise Technology Center" "Shenzhen Postdoctoral for significantly reduced energy consumption and improved brightness. In additionInnovation Practice Base" "Shenzhen Engineering Technology Research Center" and "Shenzhen Engineering Research Center”. household projection products feature diffuse reflection imaging to avoid direct light Xenon ALPD ALPDRGB 5.0
exposure and harmful blue light reduce visual fatigue and effectively protect human lamps 4.0
As of December 31 2021 Appotronics holds 1773 authorized patents around the globe of which 966 are authorized patents for invention eye health. The Company maintains full consideration of factors such as technological
resulting in a total of 2629 patent applications plus authorized patents around the world. ethics and human wellness in the research and development process.PAGE 23/24APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Active application of energy conservation and emission reduction fully displayed with real-life scenes to promote the excellent traditional Chinese culture to the audience.As of December 31 2022 27700 sets of ALPD laser projection solutions have been installed in China running about 236 million hours in Moving forward the Company will continue to explore the integration of technology and culture launch more innovative products inject
total saving about 425 million kilowatt hours of electricity and effectively reducing carbon dioxide emissions by about 186 million cubic new vitality into the cultural and creative industry and assist in the upgrading and development of the cultural industry.meters.
(Calculation method description: According to statistics compared to xenon lamps laser light sources save an average of 1.8 kilowatt hours Case: Xinjiang's first comprehensive immersive performance "Wan Fang Yue Zhou You Yu Tian"
of electricity per hour. One kilowatt hour of electricity generates approximately 0.86kg of CO2 and the volume of one ton of CO2 is 509m3.Therefore the volume of CO2 generated by one kilowatt hour of electricity is 0.44 m3. Saving 425 million kilowatt hours of electricity offsets "Wan Fang Yue Zhou You Yu Tian" was presented with the combination of Appotronics’ s brand-new light and shadow tech-
186 million cubic meters of CO2 emission.) nology with historical and cultural stories at Yotkan an epitome of cultural tourism in Yutian of Xinjiang and was well
received by the audience.Installed ALPD laser projection solutions: Help cinema partners reduce carbon dioxide
27700 sets emissions: 186 million cubic meters
Total duration of light source operation: Help cinema partners save power:
236 million hours 425 million kilowatt hours
Case:
The projectors of the same model used to be running in the Hall 8 and Hall 9 of the Dadi Cinema (one certain store in Tianjin) which
replaced the one with the laser light source in Hall 9 in June 2021 with xenon lamps still in use in Hall 8. As of March 16 2022 after more
than 8 months of use engineer testing results showed that the laser light source saved 74.4% of electricity compared with traditional xenon
lamps.Hall NO. Electric meter reading (June 252021) Electric meter reading (March 162022) Case: Life Show of Wuyuan Cultural and Tourism Town in Jiangxi Province
No. 9 Laser hall 0 2743.2 kilowatt hours of electricity Wuyuan County in Shangrao City of Jiangxi Province widely known as the "Chinese Huizhou Art Culture and Tourism
Resort Town" was at the core of the projection life show. Appotronics helped create a magnificent "Great Lake Show" with
giant images covering three major scenes: Huizhou architecture divine tree sculpture and water curtain. More significant
No.8 xenon 0 10726.25 kilowatt hours of electricity still was a Mapping projection show on the 59 meter high "Jade Pagoda" relaying the story of the legends.lamp hall
(No.8 xenon lamp hall electricity meter) (No.9 ALPD laser hall electricity meter)
Technology+ culture inherit excellent culture
Appotronics takes promoting the integration of technology and culture as its own responsibility and assists in the dissemination of tradi-
tional culture through various means such as large-scale cultural tourism artistic performances landscape lighting and night light shows.The Company's G-series engineering projector helped create Xinjiang's first comprehensive immersive performance "Music From AllAround including Khotan” which incorporates new light and shadow technology into historical and cultural stories to bring unprecedented
sensory experience and emotional resonance to the audience; The Company's engineering T-series assisted in the life show of Wuyuan Cul-
tural and Tourism Town in Jiangxi creating a magnificent "Great Lake Show" within the life performance with local characteristic buildings
PAGE 25/26APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
03
Responsible ESG management
PAGE 27/28APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Key stakeholders Topics of concern Communication and response
Improve ESG governance Employee act ivit ies employee con-
Employees Protection of employee rights and g re s s u n i o n a c t i v i t i e s e n t e r p r i s e interests intranet employee training employee
handbook etc
Sustainable development an essential component of Appotronics's business development has become an important reference in the Compa-
ny’s decision-making process to ensure the fulfillment of the Company's ESG goals and commitments.Compliant operation crisis man-
ESG goals Government and agement environmental manage- Institutional inspection official corre-
regulatory bodies m e n t a d a p t a t i o n t o c l i m a t e spondence pol icy implementat ion
“New Light New life” not only the Company's mission and vision but also the goal of ESG work amounts to utilizing laser core technology change information disclosure etc.to create a better life experience for people and create better long-term value for the stakeholders.ESG organizational management Shareholders' meeting Financial report Anti-corruption data compliance E n t e r p r i s e E S G r e p o r t Ro a d s h o w
Appotronics has established and continuously improved an ESG management communication and coordination linkage mechanism designed Shareholders and investors corporate ESG governance crisis research conference calls SSE e-inter-
to promote the effective implementation of the Company's ESG work. As the first person responsible for ESG the Chairman is responsible for management responsible market- active platform Dedicated hotline and
reviewing and making decisions on the Company's ESG work strategy and goals; Functional departments business departments and subsid- ing responsible supply chain Emai l for investor communicat ion
Open online investors day etc.iaries are responsible for formulating corresponding ESG work goals and plans implementing company strategies and maintaining communi-
cation with internal and external stakeholders; The informal ESG working group of the Company is responsible for collecting ESG information
Supplier communication activities sup-
and preparing reports regularly reporting ESG matters to the management and forming a work promotion method of review and Responsible supply chain anti-cor- plier management platform regular
decision-making coordinated supervision and step-by-step implementation. Supplier ruption data compliance climate supplier training supplier verification
change adaptation exchange visits reporting and com-
plaints etc.R&D innovation product quality Product exhibitions customer research
Identify and communicate with stakeholders Client and safety responsible marketing technical seminars customer hotlines data compliance crisis manage- official WeChat accounts customer sat-
ment i s f a c t i o n s u r v e y s r e g u l a r a u d i t s reports and complaints etc.Stakeholder identification
Telephone communication irregular
Appotronics attaches great importance to the opinions of various stakeholders having defined seven major stakeholders including employees Partners (academic institu- Adaptation to climate change cor- visits ESG activities academic semi-
government and regulatory agencies shareholders and investors suppliers customers partners and communities through group size tions research institutions porate ESG governance responsi- nars industry exhibit ions industry
communication frequency and correlation analysis of important topics. The Company with established smooth communication channels and industry associations) ble supply chain training exchange meetings etc.cooperative relationships with all stakeholders analyzes the demands of stakeholders identifies substantive topics related to the Company's
sustainable development and clarifies internal responsibilities and implements key management projects so as to achieve high-quality devel-
opment of the Company through positive impacts on the environment and society. The Company actively communicates with stakeholders via E n v i r o n m e n t a l m a n a g e m e n t
websites media conferences reports and events among others. responsible marketing responsible Press releases social media event par-
supply chain product quality and ticipation questionnaire surveys com-
Stakeholder engagement Community (media social munity volunteer activities social wel-organizations etc.) safety innovative research and development corporate ESG gov- fare projects social career support proj-
With communication with stakeholders in mind Appotronics has established a normalized communication mechanism to ensure full listening ernance social welfare providing ects etc.communication and responding to the needs of stakeholders. During the period the Company based on feedback and suggestions from employment opportunities
stakeholders developed and optimized communication methods and channels to ensure high-level participation of stakeholders.PAGE 29/30APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Substantive Topics Matrix Analysis Chart
ESG topics identification 2 83 7
Based on the substantive analysis process in the enterprise ESG report Appotronics established a systematic analysis model to identify sus- 5 9
tainable development topics of concern to stakeholders which was used as a reference for information disclosure in order to facilitate 1 10
effective communication with different stakeholders. 6 Major topics
12
Step 1: Establish communication goals 114
Appotronics sets communication goals expecting to communicate with stakeholders via information disclosure by ESG report. 13
Communication objectives: 15
14
Communicate the Company's Obtain feedback from stakeholders Strengthen the Company's risk
achievements in sustainable on the Company's sustainable management and operational
development development achievements capabilities
Step 2: Identify sustainable development topics
Appotronics has identified 7 key stakeholders taking into account domestic and international policies and standards that should be
followed such as the Shanghai Stock Exchange's Self-Regulatory Guidelines for Listed Companies No. 1 Standardized Operation the Global low medium High
Reporting Initiative's (GRI) Sustainable Development Reporting Standards the United Nations’ Sustainable Development Goals and ESG
rating requirements focus of internal and external stakeholders' attention and peer benchmarking analysis as well as the Company's indus- Importance to the Company
try characteristics and strategic direction to select communication topics.upstrea company downstream
Step 3: Conduct stakeholder research
Appotronics takes the listed topics as the core contents of stakeholder research and conducts stakeholder research on the impact of sustain-
able development topics through online questionnaires. 1 Waste management 6 Avoiding the use of harmful substances 11 Responsibility supply chain
Adapting to climate change R&D innovation Anti-corruption
Step 4: Analysis of the importance of the topics 2 7 12
3 Improving resource utilization efficiency 8 Product quality and safety 13 Data compliance
In order to identify substantive topics of concern to stakeholders Appotronics analyzes the importance of each stakeholder's rating of the
topic and the weight of the stakeholders from two dimensions: "importance of economic environmental and social impacts" and "impor- 4 Improving energy efficiency 9 Human resource development 14 Enterprise ESG governance
tance of impact on stakeholder evaluation and decision-making" and combines the importance of each stakeholder's rating of the topic and
the weight of the stakeholders in the rating to draw a matrix analysis diagram of substantive topics. 5 Greenhouse gas emission management 10 Responsibility marketing 15 Crisis management
PAGE 31/32
High medium low
Impact on the stakeholdersAPPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Active ESG communication
During the period Appotronics actively participated in ESG communication and sharing activities between enterprises learned from the ESG
Take ESG Actions work experience of excellent enterprises and spoke through media channels to further enhance the breadth and transparency of the Com-pany's ESG communication.
1) In July 2022 Tang Shi Vice President of Appotronics participated in "ESG* Salon for 3rd Anniversary of the Sci-tech Innovation Board"
hosted by National Business Daily to share and discuss the corporate ESG practice.Conduct ESG training
1) In August 2022 Tang Shi Vice President of Appotronics attended the Southern International Forum of Finance and Economics 2022 the
second session of the 21st Century Excellent Board of Directors series activities and the launch ceremony of the 21st Century Finance and
In order to enhance the Company's overall ESG awareness and build an ESG management culture Appotronics provided ESG training to Economics APP "ESG Channel" and delivered a keynote speech on the topic of ESG for Chinese listed companies.members of the board of directors informal working group members and relevant departments through internal organization and external
participation in training activities organized by the China Association for Public Companies during the period resulting in 3 ESG training ses-
sions with upwards of 30 trainees.Indicator Unit 2021 2022 Postscript
Number of social responsibility
/ Time 1 3 3
ESG training sessions 1
20212022
32
Number of social responsibility
/ Person-time 21 32 21
ESG trainees
Enhance ESG information disclosure
Since its listing in 2019 Appotronics has
20212022
voluntarily disclosed independent social
responsibility reports and ESG reports for
the fourth consecutive year continuously
improving the transparency of the Compa-
135.77 ny's ESG information disclosure. During
the period the Company's ESG was rated
A by Wind ESG ranked among the top
8 135.77 11% of A-share listed companies. It was Public welfare contribution RMB 10000 awarded the Social Responsibility Pioneer
Enterprise Award by Cai l ian Press and
8 recognized as a green practice pioneer in
2022 by the National Business Daily.
2021 2022 Moving forward the Company will continue to regard ESG information disclosure as a long-term undertaking ensure the authenticity and
openness of ESG related information and shape a good corporate image.PAGE 33/34APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
04
Diversified corporate governance structure
PAGE 35/36APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Diversification of the board of directors
Appotronics has established a diversified governance structure fully mobilizing resources from all parties to promote synergy and continuous-
Strengthen corporate governance and consoli- ly improved the level of corporate governance. The Company conducts its work in accordance with the provisions and requirements of the Company Law Securities Law Listed Company Governance Standards and relevant laws and regulations as well as normative documents of
date the cornerstone of sustainable development the China Securities Regulatory Commission and Shanghai Stock Exchange. The board of directors is the permanent decision-making and management body of the Company and consists of four specialized committees: the Strategy Committee the Compensation and Performance
Assessment Committee the Nomination Committee and the Audit Committee. At the same time a corporate governance structure has been
formed between the shareholders' meeting board of directors board of supervisors and management with clear powers and responsibilities
effective checks and balances scientific decision-making and coordinated operation. The Company's governance structure has been continu-
ously improved and the operating mechanism of "three meetings and one layer" meaning shareholders' meeting board of directors supervi-
Responsibility dimension Indicator Unit 2022 sory board and senior management has been optimized to promote the continuous optimization of corporate governance efficiency.Number of board meetings time 11 At present the second board of directors of the Company has 7 directors including 3 independent directors and 1 employee representative
director. The committee members are diligent and responsible securing the board's scientific decision-making for the Company. The second
board of supervisors of the Company consists of 3 supervisors including 1 employee representative supervisor. The composition of the board
Number of meetings of the supervisory board time 11 of supervisors and the qualifications of its members are aligned with the laws and regulations alongside professional knowledge and work
experience.Number of shareholders' meetings time 4 During the period the Company held 4 general meetings of shareholders 11 meetings of the board of directors 11 meetings of the board of
supervisors and 14 special committees of the board of directors to review regular reports repurchase matters equity incentive plans and
others standardize the operation system of the three meetings and improve the level of internal governance.Three meetings governance Number of audit committee meetings time 7
Number of meetings of the strategy and time
investment committee 1
Number of meetings of the compensation time
and performance assessment committee 4
Number of meetings of the nomination time
committee 2
Number of directors person 7
Male proportion on the board of directors % 85.71
Board Composition
Proportion of women on the board of % 14.29
directors
Number of independent directors person 3 Shareholders' meeting
Number of investor communication related time
activities (roadshows conference calls etc.) 260+
Investor relations
Number of participants in investor com- Person-time
munication related activities 600+
PAGE 37/38APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Governance structure conducts voluntary information disclosure releases ESG reports and letters to shareholders and guides investors to pay attention to corporate
responsibility and the Company's long-term development strategy alongside true accurate complete timely fair proactive and frequent
information disclosure. The fact that the Company was designated by well-known domestic and foreign car companies a timely reflection on
Shareholders' Meeting the progress of the Company's car business to assist investors in decision-making was disclosed and so were the English versions of the
reports on a regular basis to enable overseas investors to grasp the Company's development status and more.Supervisory Board
260+ Roadshows 600+ Accessing buyer 2 Performance
Board of Directors investors briefing
About
700+ IR hotlines Inquiries from investors on public 100 communication platforms
Compensation and
Strategy Committee Performance Assess- Nomination Committee Audit Committee
ment Committee
Risk management
In 2022 Appotronics strengthened risk management enhanced employees' risk Adhere to integrity and compliance
awareness and prevention measures and established a scientific and effective
risk monitoring and warning mechanism to comprehensively enhance the strengthen internal business management
Company's risk prevention capabilities and ensure its stable development. The
Company proactively reported major issues and their progress to the regulatory
authorities on a monthly basis to ramp up communication and exchange with
regulatory authorities. In addition the "Management System for Foreign Business ethics and compliance management
Exchange Derivatives Trading Business" and relevant risk control measures were
formulated to strengthen the risk management and control of foreign exchange A
derivatives trading with relevant business performance necessitating Internal learning materials for the Company: Legal FQA Top management: The management of the Company adheres to the principle of integrity and diligence and ensures
corresponding decision-making procedures and information disclosure. the ethics and compliance of business decisions.In order to better control legal risks and ensure the healthy and efficient business operation during the period the Company's legal center B
regularly launched three issues of legal frequent questions and answers (“FQA”) which sorted out common legal issues and professional Cultural awareness: The Company has completed the construction of a transparent and honest environmental
network thus regulations to go by. All-staff emails internal training internal journals and other forms were
answers encountered in daily work on the OA platform allowing for legal empowerment for all employees and enhancing legal awareness.utilized to promote integrity culture to all staff and cases of fraud investigation and punishment were reported
to enhance employees' awareness of integrity and compliance.Investor relation management C Work structure: The internal audit of the Company takes a project-based operation approach and the
work team carries out end-to-end business process audit projects and special investigation projects for
In 2022 Appotronics continued to strengthen communication and interaction with investors created more value and return for investors and single or multiple sub business processes. The audit project cycle allows the evaluation and problem disclo-
established a good image of the capital market. There were a total of over 260 roadshows including roadshows reverse roadshows online sure of key business process risks to be achieved and ultimately the implementation of closed-loop
and offline strategy meetings and investor open days (excluding daily phone conversations) accessing over 600 buyer investors. Two perfor- improvement to be advanced.mance briefing sessions were held within 2022 over 700 IR hotlines were connected and approximately 100 inquiries from investors on public D
exchange platforms were responded to. Management system: The Company has effectively managed business ethics and compliance in accor-
dance with the Basic Norms of Enterprise Internal Control and its supporting guidelines as well as
Meanwhile Appotronics further improved its information disclosure management work and implemented it in accordance with relevant laws other internal control regulatory requirements combined with the Company's internal control system
and regulations as well as the "Information Disclosure Management System" and other relevant requirements. The Company repeatedly and evaluation methods on the basis of daily and special supervision of internal control.PAGE 39/40APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Conducted three compliance training sessions for relevant departments of the Company popularized Reporting system and handling mechanism
Board Office information disclosure and related party transactions among others and improved the Company's
internal control compliance level.Reporting phone 13620926735
number
Launched the "Integrity Appotronics Quarterly" which involves anti-corruption and compliance
Audit Department management including anti-corruption corporate social responsibility and sustainable development
to comprehensively convey the image and concept of corporate integrity and compliance. Report Email jubao.audit@appotronics.cn
Held a Trade Secret Protection Month to promote the theme of trade secrets for all employees of the
Legal Center Company including offline training and online learning testing etc. Those who proactively report and cooperate with investigation evidence collection and
Reporting rewards verification will be rewarded 30% to 50% of the recovered amount (up to a maximum
of RMB 1 million) exempt from punishment and given priority cooperation opportunities
under the same conditions.In response to the tip-offs the Company will assign dedicated personnel to follow up and
Protection matters manage them and strictly keep them confidential to protect the legitimate rights and
interests of the whistleblowers.Internal information confidentiality compliance Screenshots of 'Integrity Appotronics Quarterly' External lawyers hired to provide training on "Key
promotion meeting Points for Protecting Enterprise Trade Secrets"
Internal audit External audit
The Company actively carries out internal audit on To ensure the fairness and independence of the
business ethics and anti-corruption assesses the potential audit Appotronics conducts third-party external
risks of business activities and formulates annual self-in- audits every year to ensure that the Company
spection and audit plans according to the risk situation to fully meets the requirements in terms of business
improve the management system so as to effectively ethics and other aspects. At the same time the
control the Company's business moral hazard. During the Company regularly and accurately promotes the
reporting period the Company did not have any major concept of clean cooperation to its partners
litigation cases involving corruption or unfair competition. achieving a closed- loop external supervision.Anti-corruption and integrity system
Appotronics is determined to fight corruption and establish and improve management mechanisms related to anti-corruption such as the
"Appotronics Anti-Corruption Management System" "Employee Gift Management Measures" and "Appotronics Employee Behavior HighVoltage Line”. If there is any violation of national laws and regulations company rules and regulations or damage to the company's image and
interests the audit department of the Company will conduct investigation prosecution or transferring to judicial authorities depending on the
severity of the situation and promptly report it to the chairman or board of directors.At the same time the Company attaches great importance to its partnerships continuously strengthening supplier management and integrity Appotronics has opened a clean reporting channel on its official website and pays attention to the confidentiality of whistleblowers. The
construction and signing the "Integrity Cooperation Agreement" with all external suppliers and other partners with a signing rate of 100%. reported content is communicated and recorded by dedicated personnel strictly preventing the leakage and dissemination of confidential
Appotronics supervises and manages the integrity performance of suppliers in daily work actively initiates rights protection measures against information such as whistleblower identity and reporting materials. The Company strictly prohibits and punishes acts of retaliation against
defaulting suppliers and safeguards the legitimate rights and interests of the Company. whistleblowers and if necessary requests judicial authorities to investigate legal responsibilities in accordance with the law.PAGE 41/42APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Digital supply chain factory
The application of digital technology means significantly improved production efficiency improved product quality and reduced production
Emphasize digital construction and enhance net- costs thus promoting high-quality development of enterprises. The Company has invested in the construction of digital factories especially the introduction of BI display board in digital supply chain factories which can address the information statistics and analysis efficiency issues
work security innovation in the production process display on-site management related data in real time and meet customer certification requirements.Network security commitment and system
Appotronics puts great emphasis on internal network security within the
Company having developed the "Code of Conduct for Employee Information
Confidentiality and Information Security" to guide the effective implementation
of related work throughout the Company which covers all information protec-
tion and security measures involved in employees' work and is designed to
provide specific and clear guidance and norms for employees to ensure that
their behaviors meet the Company's information security requirements. In
addition to formulating a code of conduct the Company has conducted multiple
explorations and practices in the field of network security believing that only
by protecting the internal network security of the company can we provide
customers with more secure reliable and efficient services laying a solid foundation for the company's sustainable development.Digital factory BI display board
Network security construction Enterprise digital infrastructure
Appotronics strengthens the Company's information security and stable Appotronics strengthens the enterprise digital construc- IT Technology drives business process innovation
network operation via the combination of internal and external network tion having launched the SRM supplier management
security construction measures. The Company provides internal cloud disk system in 2022 completes the informationization of the
Appotronics redesigns and improves business
Seafile services to various core departments (finance research and devel- supplier import process avoids printing and storing paper
processes via the application of modern Informa-
opment sales etc.) to ensure the security of the Company's core informa- supplier information and significantly improves the
tion technology (“IT”) a key driving force for
tion assets and avoid the risk of information asset loss caused by hacker efficiency of related approval. The Company has established
enterprise business process innovation to realize
attacks and employee laptop loss. Additionally the Company actively a digital supply chain architecture for the system and
more efficient and precise operations and
collaborates with external consulting companies to launch client antivirus completed the upgrade and switching of Moka recruitment
optimizes processes through data analysis to
server antivirus and employee security audit software strengthening the system and enterprise email and CBS banking platform
improve production efficiency.defense of the Company's personal computers and servers against viruses. greatly improving the internal work efficiency of the
Company.Interac- Supplier portal B2B e-merce Communication and interactionConstruction Phase I(basic Phase II(Analysis and Phase III(Active Phase IIII(Construction
tive Links Logon/login Notice News JD corporate procurement platform Qixin.com/Qcc.com kuaidi100.com WBIroute safety) warning) response) cycle/targeted construction) Search engine Request release information feedback gph.jd.com suning.com corporate mall DingTalk/CLOUD-HUB baiwang.com Other links
Firewall IPS Email gateway VPN Honeypot Security sandbox External risk baseline Resource development Quality management Former sign back approach New approach
optimization
External risk Tighten the AC(Internet behavior management) Situational awareness Supplier lifecycle management Price management Manual scanning manual naming The system automat ica l ly detec ts the log ist i cs Targeted construction of
boundary Potential supplier registration Supplier access Supplier Inquiry and quotation management
FAI access quality
Anti-virus gateway Terminal antivirus Security Intelligence c l a s s i fi c a t i o n a n d l e v e l m a n a g e m e n t S u p p l i e r Price Approval manual uploading to FIS tracking number that has been signed for automati-external risk baseline per formance eva luat ion Suppl ier rec t ificat ion and Price adjustment VDCS (8D process) cal ly signs back K3 and saves the electronic sign
elimination Price adjustment 15000 orders per month 3-4 days per month
Firewall IPS Desktop platform Access control Log analysis platform
back significantly saving labor
Service monitoring platform EDR linkage mechanism Internal risk baseline
SRM
Internal network optimization
business Procurement execution
Internal risk Log Analysis Management Platform Business Accompanying operation Purchase order full process Company RPA platformisolation Targeted construction of
Fortress machine traffic probe Patch management Procurement requests Release and confirmation Summary and review Supplier capacity Contract type Contract text Contract template Contract internal risk baseline performance Order generation and review Order release confirmation Order process monitoring Delivery schedule Delivery appointment and
Internet control Terminal Security Behavior Audit Zero trust review Receipt and return Reconciliation review Invoice payment Deduction surcharges Subcontracting receipt Inventory sharing
Firewall UPS Remote disaster preparedness Data non-implementation Master data management Basic data Basic platform
Document Control Materials and supplies master data Supplier master data Price Organizat ional structure Personnel Report design Workflow design
Cross machine Dynamic environmental monitoring Data security baseline
Data security Authorization System
master data Source quota information Access management Page designer
backup Precision air conditioner optimization
Desktop virtualization
computer room Target construction of data Server virtualization security baseline Synerget- Security management Interface platform Log management Instant messaging Workflowair conditioner ic system PLM ERP MES WMS TMS OA other systems Email SMS Message management
Network security prevention architecture Digital supply chain architecture
PAGE 43/44APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
05
Safe and reliable products
PAGE 45/46APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
International Authorized and Introduction to authoriz-
/ recognized ing and recognizing Authorization Authorization
Certificate
/
national laboratory name parties level standards plaque
Optimize quality management to ensure product IEC 60950-1:2005
IEC 60065-1:2014
safety and quality UL Safety Testing Institute UL/CSA 60950-1
is the most authoritative
inst i tut ion in the United UL/CSA 60065-1
States the world's authori- IEC 60950-1:2005
Product quality is the cornerstone to the market and the key to winning the trust of users. Appotronics striving for high-standard high-quali- tative institution engaged IEC 62368-1:2014
ty and highly efficient quality management passed the ISO 9001 quality management system certification when it was established and in in safety testing and certi-International WTDP Laboratory WTDP&CTF2 IEC 62368-1:2014
2021 implemented the IATF 16949 quality management system. A series of normative documents such as "APQP Management Regulations" fication and also a leader
"Certification Product Consistency Control Regulations" and "Process Exception Handling Process" were developed internally to guide the in the global safety indus-
IEC 60950-1:2005
strengthening of quality management and promote the construction of quality culture concepts system and process laboratory system and try. UL certified products UL/CSA 60950-1
quality monitoring system for full process quality management. have high credibility among UL/CSA 62368-1
government agencies and
EN 60950-1:2006
The Company is committed to creating an Appotronics-style "zero defect" quality culture achieving production monitoring aging time and 5S consumer groups.visualization throughout the entire process system and integrating quality monitoring into every aspect of production management. With EN 62368-1:2014
strengthened quality management the Company's products can meet the needs of high-end core devices household laser intelligent projec- EN 62368-1:2018
tion laser movie projection equipment laser engineering machines laser business education products laser televisions and others and have
been highly recognized by top-tier users in industries such as Xiaomi Barco and China Film. At the same time the Company attaches great I T S a n i n t e r n a t i o n a l
importance to product quality training achieving a 100% coverage rate for all personnel in product quality training. a u t h o r i t a t i v e t e s t i n g
a g e n c y a n d t h i r d - p a r ty
notary firm is one of the
SATELLITE l a rgest consumer go o ds
International test ing insp ec t io n a nd Level2&CTF2 The same as above
Laboratory certification institutions in
the world. It is renowned
worldwide for its profes-
s ional ism accuracy and
integrity.TüV Rheinland one of the
world's leading testing and
certification service provid-
ers represents safety and
quality in almost all com-
ISO 9001 quality management system certification mercial and life fields. The
CTF Stage 2 TüV logo on a product is
International tantamount to safety qual- Level2&CTF2 The same as above
Laboratory ity and reputation which
Strict quality control in DQA laboratory is a passport to enter the
international market. UL
Appotronics aiming to provide safer more reassuring and higher quality products to the public has established a DQA laboratory responsible ITS and TüV are the top
for ensuring product design quality and strictly controlling product quality in accordance with standard requirements. The DQA laboratory three authoritative institu-
operates in accordance with the ISO/IEC17025 international laboratory management system and has comprehensive testing detection identi- tions in North America in
fication and certification procedures and capabilities. The laboratory which has been recognized by CNAS can issue CNAS reports with social terms of recognition.credibility and international mutual recognition. The Company has also established a safety testing laboratory with international standards
(such as IEC60950-1 and IEC62368-1) applied to product design.PAGE 47/48APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
International Authorized and Introduction to authoriz-
/ recognized ing and recognizing Authorization Authorization
Certificate International Authorized and Introduction to authoriz- Authorization Authorization Certificate/ / recognized ing and recognizing /
national laboratory name parties level standards plaque national laboratory name parties level standards plaque
IEC 60950-1:2005
International Electrotechni- IEC 60065-1:2014
cal Commission( “IEC” ) is
Listed on the
International o n e o f t h e t h r e e m a j o r CTF2 The same as above UL/CSA 60950-1
IEC website
international organizations UL/CSA 60065-1
for standardization IEC 60950-1:2005
IEC 62368-1:2014
TüV SüD authorized
International TüV SüD Level2&CTF2 IEC 62368-1:2014
laboratory
IEC 60950-1:2005
UL/CSA 60950-1
UL/CSA 62368-1
China National Accredita-
Projector related
National CNAS laboratory tion Service for Conformity / EN 60950-1:2006
testing standards
Assessment EN 62368-1:2014
EN 62368-1:2018
Compliant design market trust
Appotronics carries out product compliance design in accordance with global market access requirements strictly controlling laser radiation
photobiological safety electrical safety chemical environmental protection harmful substanceselectromagnetic compatibility etc. to provide
safe reassuring and high-quality products for the society.The Company's products have passed national mandatory CCC certification national
China National Institute of energy-saving and environmental protection CECP certification overseas product safety CB/UL/ETL/TüV certificationoverseas electromag-
Energy efficiency Standardization Energy Energy efficiency netic compatibility FCC/CE-EMC certification and FDA certification.National /
testing laboratory Efficiency Labeling standards for projectors
Management Center The Company strictly follows environmental protection requirements in product design and production and implements environmental
self-commitment in accordance with international regulations/directives such as the European Union(“EU”)’s Restriction of Hazardous
Substances(“RoHS”)the EU’s Packaging and Packaging Wasteand RegistrationEvaluationAuthorization and Restriction of Chemicals
(“REACH”). The company also reports/files with relevant departments.Appotronics- ITS
International strategic cooperation Intertek / /
laboratory
Certificates display
PAGE 49/50APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Quality molding excellent strength
Adhering to high-quality development Appotronics has been awarded the "Class A enterprise" by the China Quality Certification Center. The
relevant person in charge of the Company serving as an expert in the Shenzhen standard library and a reviewer of the Shenzhen Quality Adhere to responsible marketing and improve
Award actively participates in the formulation of industry standards excellent quality coaching for enterprises and quality award evaluation
forming a replicable model of high-quality development work experience for the whole society and promoting the development of excellent service experience satisfaction
quality in the industry.Appointment letters for Class A enterprises and experts
Appotronics prioritizes customer needs and experience ensuring that product quality is flawless and customer service is complaint- free. In
terms of product marketing its actively expanding marketing strategies and multi-channel and diversified sales channel development strate-
gies can help enhance the stickiness between brands and users. At the same time the Company focuses on compliance in marketing and
adopts active marketing strategies while adhering to relevant regulations and standards vigorously expanding the market.Emphasize customer needs
Appotronics attaches great importance to the actual needs of customers having successively launched display solutions for home audio and
video cinema projection laser engineering education and commercial use and innovatively developed application scenarios such as automo-
tive optics aviation display AR etc. thus full scenario coverage of laser display.Establish a satisfaction system
The Company adhering to the principle of "maximizing customer interests" has established a satisfaction system and internally formulated
a series of systems such as "Product Safety Management Regulations" "Customer Satisfaction Survey Process" and "Customer Complaint
Appointment letters for Class A enterprises and experts Handling Process" to better understand customer needs and feedback thereby continuously improving products and services and improving
customer satisfaction and loyalty.Improve the after-sales system
Case: Formovie strictly controls quality
The Company continues to improve its user service system allowing for an after-sales service capability that covers mainstream e-commerce
The private label business of Formovie a subsidiary controlled by Appotronics maintains high requirements for product quali- platforms combines online and offline and integrates pre-sales and after-sales services. In terms of after-sales service informatization
ty conducting strict quality control and supervision spanning from production manufacturing logistics and distribution to specialization and localization constructions will be carried out to ratchet up service timeliness and customer satisfaction.after-sales service to ensure the stability and reliability of the product. The company has passed the strict review of SGS and
obtained the ISO9001 quality management system certificate. Customer complaint handling flowchart
Formovie projector shortlisted for
The company has received Formovie V10&Formovie S5 Formovie V10&Formovie S5 2022 China New
multiple awards for its German Design AVF Technology Consumption Gen-Z Award 2022 Innovation Award Brand hosted by National
products and brands Business Daily QA confir- Root cause 8D report
mation
Formovie S5 shortlisted for The Future of Light is the Future
analysis
Formovie V10 Formovie V10 shortlisted for of Home by Formovie
"2022 Intelligent
CES Innovation "Technology Projection Product 2022 Times Awards
Awards 2023 specification for game Innovation Guide"
projector" innovative product
Request Contain- Improve- Customer
acceptance ment plan ment confirma-
actions tion
PAGE 51/52APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Case 1: Formovie establishes a standardized sales training system
The sales department of Formovie has established a standardized training ledger system deploying full-time trainers for online
and offline salesmen as well as distributors establishing annual training plans and developing training courses and plans on a Protect privacy and safeguard customer infor-
quarterly basis. New employees are arranged for pre-job training and regular on-job retraining and can only start work after
passing the assessment. At the same time the sales department promptly visits employees and distributors after training con- mation security
tinuously improves the training plans and courses continuously improves the professional skills and knowledge reserves of
sales personnel and ensures responsible sales of products.Appotronics is committed to protecting customer privacy strictly complying with relevant laws and regulations encrypting all information
related to customer privacy and using secure and reliable storage methods to prevent information leakage. At the same time strict training
and management are provided to internal employees of the Company to ensure that they fully recognize the importance of customer privacy
and master relevant protection skills. The Company only allows authorized personnel to access customer privacy information to ensure the
Case 2: Formovie continuously improving its after- security of customer privacy.sales service system
In 2022 Formovie continued to improve its user service system
forming an after-sales service system covering mainstream Case 1: Automotive optics awarded information security certificate
e-commerce platforms combining online and offline and inte- Appotronics attaches great importance to ensuring information security especially in the automotive optical product line
grating pre-sales and after-sales services. Its 400 after-sales having carried out ISO27001 certification work to obtain the "Information Security Management System Certification Certifi-
service covered major e-commerce platforms providing 12 cate". The certification earning the Company the trust and recognition of automotive optical customers provided relevant
hours * 365 days of after-sales service. Hotline calls were avail- information security requirements and guarantee measures for customers during the factory inspection process. It also indi-
able for 9 hours * 365 days throughout the year answering cates the Company's professional strength and commitment in the field of information security with the capabilities to provide
over 42000 user cal ls and customer satisfaction reached users with more reliable and secure products and services.
98.91% maintaining an industry-leading level. After-sales service work
Case 3: CINEAPPO launches the 400 Service Hotline
In 2022 CINEAPPO opened a 400 phone and online service hotline which connected more than 15000 times and online cus-
tomer service received more than 1200 customers with a total of over 7000 messages and customer satisfaction reaching
96%. In addition prioritizing the use of telephone and online customer service to help customers efficiently solve problems
meant reduced cost of engineer maintenance caused by unnecessary issues.Case 2: Formovie continuously improves user privacy protection
In strict accordance with the Personal Information Protection Law of the People’ s Republic of China Formovie a subsidiary of
Appotronics has formulated different regulatory systems and process documents around FengOS user privacy protection such
as Information (Data) Management Process System of Formovie and Information Security Management Code and Confidenti-
ality System of Formovie alongside a new version of user privacy agreement to ensure that the user data is collected legally
and compliantly. At the same time Formovie actively carries out training on user personal information protection to continu-
ously improve the awareness of information protection among employees having completed user privacy compliance check in
2022 according to the Personal Information Protection Law.
PAGE 53/54APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
06
Innovation leads the vigorous development of the industry
PAGE 55/56APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Category Standard organization abbreviation Full name of the standard organization Certificate/plaque
Promote synergistic progress in the industry International Electrotechnical Commission/Audio video and mul-
International IEC-TC100/TA1 timedia systems and equipment/Terminals for audio video and
data services and contents
Appotronics a leader in the laser display industry working together with global partners to grow and strengthen the laser display industry
applies world-class standard work experience and is committed to leading and promoting the healthy and sustainable development of the
industry.International Electrotechnical Commission/Electronic displays/La-
International IEC-TC110/WG10
ser displays
10 items 9 items 22 items
International National Industry
standards standards standards Standardization Administration of the People’ s Republic of China
National SAC/TC242 / National Technical Committee for Standardization of Audio
Video and Multimedia Systems and Equipment
Standardization Administration of China / National Technical
Committee for Standardization of Flat Panel Display Devices /
8 4 6 National SAC/TC547/SC1 Subcommittee 1 on Laser Display Devices of National Technical items items items Committee 547 on Flat Panel Display Devices of Standardization
Group National enterprise Shenzhen Administration of China
standards standards "leader" standards
Standardization Administration of China / Incoherent Optical
National SAC/TC284/SC4
Radiation Safety
Participate in the development of domestic and international standards
A member unit of the International Electro Technical Commission (IEC) Appotronics participates in international standardization work pro-
motes the integration of domestic technology with international standards and plays an active role in technology fields such as laser
displays automotive optics and smart cities. As of the end of 2022 the Company has participated in the development of 10 international
China Energy Conservation Association Green and Efficient
standards. National /
Energy Products Professional Committee
In addition as a member unit of the Standardization Administration of the People's Republic of China the Company actively participates in
the formulation of national and industry standards in the field of laser display leading the formulation of industry standards for projection
display. Based on the development trend of projection display the Company formulates industry standards for projection display according
to its segmented application scenarios leading and regulating the sustainable development of the industry. As of the end of 2022 the Com-
pany has participated in the development of 9 national standards and 22 industry standards.PAGE 57/58APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Synchronize research and development with standardization healthy and sustainable development of the industry. As of December 31 2022 the Company has jointly released 8 group standards with
industry associations and enterprises within the industry.With years of exper ience in the laser d isplay
industry where standardization is relatively weak Industry association name Post Certificate/plaque
Appotronics actively promotes communication and
cooperation among enterprises in the industry
jointly promotes the development and application
of laser technology and develops industry stan-
dardization. The Company adhering to standard- China Video Industry Association Laser
Television Industry Branch Vice President Unitization strategy of "synchronous R&D and stan-
dardization" and aiming for customer satisfaction
sustainable development social contribution and
responsibility actively explores and practices stan-
dardized work modes and methods and ultimately
establishes a synchronous R&D and standardiza-
tion work mechanism. Under the mechanism it Guangdong Association of Quality Inspection Vice President Unit
has achieved a one-time success in product design
a significant reduction in product development R&D and standardization synchronous demonstration enterprise (A-level)
cycle a continuous decrease in product costs a leap in product quality significant improvement in customer satisfaction and rapid transfor-
mation of scientific research achievements. The Company was thus highly recognized by relevant departments as a "Demonstration Enter-
prise for Synchronizing R&D and Standardization (A-level)". Shenzhen Performance Excellence Vice President Unit
Management Foundation
Appotronics is willing to communicate and share advanced work experience with peers leverage the exemplary and leading effect of bench-
mark enterprises and guide more peers to develop healthily. The Company has won the honor of being the "leader" in national enterprise
standards for its multiple standards the products designed accordingly serving as leading technical indicators in the industry. In addition
the Company guides the production and consumption of high-quality products in the industry and promotes sustainable development by Greater Bay Area Standard Innovation Alliance Council member
strengthening standard "hard constraints". As of December 31 2022 Appotronics has obtained six Shenzhen standard certifications.Award Name Level Certificate/plaque
Appotronics adopts a combination of online and offline participation mode introducing the Company's standardized work mode sales direc-
tion technical development quality and after-sales solutions to companies customers and suppliers in the industry at the meeting fully
leveraging its industry influence and serving as a demonstration.National Enterprise
National
Standard "Leader" (4)
Shenzhen Standard Provincial/-
Certification (6) municipal
Participate in industry association work
Appotronics actively participates in the work of industry associations where the Company holds important positions such as vice president Attending the industry technology innovation application seminars Organizing industry sharing salons
and chairman a force of high-quality development and high standard requirements within the industry making positive contributions to the
PAGE 59/60APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Case 3: Laser technology assists beach screening at Hainan Island International Film Festival
Expand the social influence of products At the 4th Hainan Island International Film Festival CINEAPPO provided screening support and was officially awarded the
"Hainan Island International Film Festival Official Outdoor Screening Technology Partner". This film festival an icing on the
cake marked a complete milestone for the film industry in 2022.Optimizing the social influence of products allows the enterprises to achieve sustainable development and fulfill their social responsibilities
while improving the market competitiveness and commercial value of products. Appotronics focuses on improving the positive social impact
of its products featuring cost-lowering design advanced functions and user-friendly design which make them better meet the needs and
expectations of consumers and improve convenience and comfort of use. In addition the Company is committed not only to researching and
developing laser products but also actively promoting technological knowledge to make more people feel the charm of Appotronics's products.Case 1: User-friendly design by Formovie
Formovie a subsidiary of Appotronics spares no effort to
reduce user usage costs products fully representing user care.Through in-house developed Feng OS intelligent algorithm
system its product provides omnidirectional automatic trape-
Intelligent screen Intelligent screen Senseless Automatic screen Screen infinite
zoidal correction and automatic image obstacle avoidance calibration obstacle avoidance focusing alignment zoom
technology making product use more convenient. Equipped
with "Xiaoming " far-field voice it enables the access to MIJIA Amlogic T982processor
Smart Home with human voice easily controlling the projec- computing power 2600 billion times/second
Far-field voice+mijia IOT
tor. It also features optimized heat dissipation design for low Hainan Island International Film Festival
noise operation making consumers feel more comfortable
during use. Moving forward Formovie will fully consider the
usage needs of elderly and children and pay more attention
User-friendly function of Formovie S5 laser projector
to the user-friendly design of products.Case 2: CINEAPPO laser projection solution assists FIRST film festival in conveying film culture
The organizer of the 16th FIRST International
Film Festival once again designated CINEAPPO
ALPD laser digital film projection solution as
projection support. The C60 laser projection
solution provided strong outdoor projection
s u p p o r t f o r y o u n g fi l m a c t o r s w h o h a v e
received much attention and recognition pro-
moting the development of the film industry in
the post-COVID era together with FIRST.FIRST film exhibition
PAGE 61/62APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
07
Company employees growing together
PAGE 63/64APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Employee composition in 2022
Female Person
Safeguarding employee rights and 610By gender
communication Male 1027 Person
Total number of full-time employees 1630 Person
By employment
Appotronics actively advocates and always follows the “people-oriented” value on the basis of which the Company formulates comprehensive type
human resources management specifications focused on the protection of employees’ rights and interests continues to improve the employee Total number of part-time employees 7 Person
management system to deepen the communication mechanism and is willing to provide every employee with humane work environment.The Company attaches great importance to the welfare and benefits of its employees providing them competitive salaries and benefits as 30 years of age and below Person
well as high-quality training opportunities. In addition the communication and exchange mechanism is deepened for the employees to be 198
heard.By age 30-50 years old 222 Person
Adhere to equal employment (R&D personnel only)
50 years and older
Appotronics utilizes various diversified recruitment channels to widely recruit talents and form a dynamic team. The Company follows the 101 Person
value concept of equality and non-discrimination in employment throughout all aspects of employee recruitment onboarding promotion and
resignation firmly opposing any form of employment discrimination and making the employment mechanism more scientific and reasonable.The company provides inclusive and fair development and promotion opportunities for employees of different genders nationalities ages Junior college and below 711 Person
races ethnicities religious beliefs disabilities sexual orientations or family conditions. In addition the Company explicitly prohibits the
employment of children. During the 2022 reporting period 100% of the Company's employees signed labor contracts.By education Undergraduate Person
Appotronics adheres to the principles of fairness and impartiality personnel position matching and avoidance. In terms of fairness and justice 734
the Company adheres to the principles of open recruitment equal competition meritocratic recruitment and internal and external selection
to avoid discrimination against gender ethnicity region and religious beliefs. As for job matching the Company selects and reasonably
allocates personnel based on job qualifications. At the same time the Company prohibits direct family members from working in the same line Master’s degree and above 192 Person
securing the fairness and transparency of the workflow.Personnel position matching Total number of employees 1637 Person
selection based on job qualifications and
reasonable deployment
Recruitment Avoidance
Fairness and impartiality principles
Direct relatives of indirect employees
shal l not be arranged to work in the
Open recruitment fair competi- same l ine of interest related depart-
t ion and non-discr iminat ion ments and jurisdiction. The direct rela-
a g a i n s t g e n d e r e t h n i c i t y tives of direct employees shall not be
region or religious beliefs. arranged to work in the same line. Awarded Best Employer Award Nomination by Zhaopin in 2022
PAGE 65/66APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Ensure employee benefits Equal communication and exchange
Appotronics is committed to establishing a sound compensation and welfare Appotronics attaches great importance to the demands and opinions of employees and continues to improve the channels and mechanisms
system and provides reasonable and competitive compensation in the indus- for communication. At the company level the Company establishes a series of formal and informal communication methods such as trade
try by combining guaranteed income and incentives in accordance with the union employee representative conference quarterly employee communication conference democratic life meeting new employee forumbasic idea of “adapting to the market environment reflecting the value of performance counseling and evaluation communication so as to actively encourage our employees to participate in corporate managementtalents and playing an incentive role”. and safeguard employees’ rights to information and participation.In addition to the basic salary the Company also provides employees with In 2022 the Company organized activities such as "CEO Face to Face Communication Meeting" and "Fresh Graduate Communication Meeting"
incentive bonuses (profit sharing bonus patent bonus sales bonus etc.) and to establish a transparent fair and interactive corporate culture through active communication encourage employees to participate in
performance bonuses (for outstanding workers quarterly/annual honorary enterprise management and protect their rights to know and participate.awards etc.). Outstanding Inventor of the YearAt the same time in addition to the statutory “five social insurances and onehousing fund” Appotronics purchases commercial insurance for all employ-
ees covering accident insurance death due to illness and major illness.Besides Appotronics has formulated and issued the Employee Care and
Welfare Management Regulations to implement various paid leave systems
and built a comprehensive welfare guarantee mechanism so as to maintain
employees’ enthusiasm for work.Purchases commercial insurance and organizes
annual medical examinations for employees Employee proposal improvement suggestions column CEO face-to-face communication meeting
Six social insurances Team-building
and one housing fund Paid leave Flexible work OT meal allowance Health check Housing for talents Free shuttle activities
Shenzhen household Recreational Fresh graduate communication meetingHoliday care Cash gift Birthday care Family care registration application activities Innovative milieu Talent service
PAGE 67/68APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Pay attention to employee care
Appotronics strives to enhance employees' sense of belonging and stimulate their work enthusiasm and creativity. In order to strengthen the
exchange and learning between employees after work and enhance mutual understanding and trust the Company organized team building
activities in 2022 such as djembe learning Qixi festival poetry competition basketball competition and singles club movie viewing. At the
same time the Company's labor union has established and operated yoga dance badminton reading and other association clubs allowing
employees to relax in their spare time and improving team collaboration ability and work efficiency.The Company has formulated the Management Measures for the Trade Union’ s Love Support Fund according to which employees who are
hospitalized due to illness or suffer from sudden accidental injuries natural and man-made disasters resulting in difficulties to their families
will be given relief funds amounting to RMB 2000 to 5000 by the trade union as appropriate. Since the promulgation of the measures nearly
10 employees and their families in total have received help.
Singles club movie viewing
Case: CINEAPPO advocates employee daily fitness
CINEAPPO pays attention to the health and welfare of its employees actively carries out various health related sports activi-
ties and continuously promotes various health activities and exercise methods. The company encourages employees to partic-
ipate in various fitness activities such as the "12th Beijing International Film Festival Run for Fun" and also advocates for
daily fitness activities for employees to enhance their physical fitness and promote the development of a healthy lifestyle. By
maintaining a healthy body and a positive attitude employees can better immerse themselves in their work and make greater
Djembe learning Qixi festival poetry competition contributions to the development of the company.
12th Beijing International Film Festival Run for Fun
Basketball competition
PAGE 69/70APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Employee dual channel development sequence
Support employee development and learning Group Chairman CEO
Senior management
Appotronics provides a variety of job opportunities and platforms allowing employees to leverage their professional abilities and improve Management
their skills. It provides rich learning resources and a comprehensive training system to help employees continuously learn and grow. This development
diverse empowerment tool can motivate employees to continuously learn improve work efficiency and realize their self-worth. The Company Middle management channel
strives to provide employees with a positive and upward working environment promoting their personal and professional development.Experienced
Talent development channel
Primary management
With focuses on employees’ personal growth and career development Appotronics has formulated the Employee Promotion Management
Regulations and established multiple career development channels such as management channels technical channels professional channels
and marketing channels which have provided effective guidance for the development of employees. At the same time the Company has
established a position rank system that divides positions into ten levels from lowest to highest with qualification standards including tenure
performance skills and others stipulated for each level. With our efforts every employee may achieve self-development goals while creating A person of authority
values.Industry newcomers
Appotronics has established a talent training system of Aurora Ruiguang Xuguang and Xingguang series to create a comprehensive training Career
plan for new graduates reserve cadres primary managers and middle management. By the end of 2022 Xingguang has trained 219 students Expert/senior expert development
in six phases Xuguang program trained 33 students in phase I Ruiguang program included 86 students in Phase II and Aurora trained 34 channel
students in Phase I indicating good talent cultivation and talent echelon construction and providing guidance for talent development of the
management channel.Backbone
Aurora Ruiguang Xuguang and Xingguang training system
Conduct employee training
Appotronics has established a unique training system designed to prop up organizational development personal improvement and organiza-
Xinggung Xuguang Ruiguang Aurora tional capabilities with four major links continuing to operate in a closed-loop manner. The quality and effectiveness of the designed learning
project project project project products have been unanimously recognized by both students and the Company and the training feedback is above 9 points.Curriculum system:
Fresh graduate Reserve cadres primay manage- Middle manage- The core courses for middle level leadership primary management knowledge and skills and professional skills training courses have been
cultivation cultivation ment cultivation ment cultivation continuously developed with a completion rate of about 70%.The source project of Key ta lent t ra in ing Essential talent train- Extremely important
l o n g - t e r m t a l e n t project in the eche- i n g p r o j e c t i n t h e talent training project Lecturer system:
cu l t ivat ion and the lon reserve forces in e c h e l o n t h e b a c k - in the ec he lon the In 2022 the Company had 283 lecturers with a well-running company/center/department three-level curriculum system. Over the past three
cornerstone of talents the echelon bone of the echelon lumbar backbone of years the Company has certified over 80 instructors. The internal/external teacher course resource library is continuously being maintained
echelon the echelon
D e s i g n e d t o h e l p D e s i g n e d t o h e l p and updated. With the management system continuously upgrading the labor division and collaboration mode of training HRBP and depart-
Fo c u s i n g o n " t e a m reserve cadres ratch- p r i m a r y m a n a g e r s D e s i g n e d t o h e l p ment learning committee members is basically mature and the training system is basically complete adapting to the current learning and
integration learning e t u p t h e i r va r i o u s b e tt e r u n d e r s t a n d middle management development needs.i m p r o v e m e n t a n d a b i l i t i e s c u l t i v a t e and undertake busi- b ette r co n n e c t t h e
ability accumulation" i n t e r - d i s c i p l i n a r y ness goals manage superiors and subor- According to statistics the total training time for employees in 2022 was 17673 hours with an average training time of approximately 14.73
helping fresh gradu- talents and increase and coach subord i- dinates express con-
ates quickly adapt to team talent density nates solve business fi d e n c e i n w i n n i n g hours per person (only for employees of the parent company). In addition in order to enable new employees to quickly integrate into the
the jobs problems and lead and achieve organiza- company adapt to organizational development develop a sense of belonging and quickly adapt to work positions the Company organized
by example to prac- tional goals and implemented new employee training camps on a monthly basis covering a total of over 180 people throughout the year.tice corporate culture
PAGE 71/72APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Case: CINEAPPO continuously learning and growing together
Support organizational development
Support personal improvement CINEAPPO regularly holds employee training to help employees improve their business abilities and knowledge reserves a
Accumulate organizational ability practice of the "continuous learning and common growth" corporate culture. In 2022 CINEAPPO conducted a total of 16 internal
training sessions for employees totaling 550 participants 546 hours of training and 20 internal lecturers. The course "Practical
Requirement project organizational evaluation Operation Sharing of Company Business System Usage" helped the employees quickly understand and learn about the business
analysis planning implementation feedback system; The “Service Timeliness and Service Commitment” provided employees with a profound understanding of service
commitments among others. At the same time CINEAPPO has launched cloud classroom making it convenient for employees
to review and learn new things.Three-level Lecturer Resource
course system system library
construction
Training management division of labor system
IT platform construction/training management system
Training management positioning
Company training system structure
CINEAPPO training
Equity incentives and equity buybacks
Appotronics an enterprise that attaches great importance to talent incentive and development released the 2022 restricted stock incentive
plan in April 2022 with 10.5 million restricted stock shares planned. The equity incentive plan will be beneficial for enhancing the enthusiasm
and team combat effectiveness of the company's core team members further consolidating corporate strategic consensus stimulating
employees' potential and innovation awareness and promoting high-quality development of the enterprise.Meanwhile Appotronics based on the confidence in the future development prospects of the Company and a high recognition of the Compa-
ny's value combined with the company's operating situation main business development prospects financial situation and future profitabili-
ty initiated a share buyback in March 2022 using no more than RMB 20 million of raised funds to repurchase the company's shares earmarked
for employee stock ownership plans or equity incentives at an appropriate time going forward. In September 2022 the Company cumulatively
repurchased 900000 shares with an average repurchase price of RMB21.53 per share successfully completing the transaction in 2022. The
Newcomer training camp
move reflected confidence in the future development prospects of the Company and recognition of intrinsic value.PAGE 73/74APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Ensure safe production
Appotronics prioritizes safety production continuously improves safety management mechanisms and promotes the construction of a safety
Ensure employee safety and health production system. The Company has set up a Safety Management Committee with an Office of the Safety Management Committee the R&D center and supply chain center of the company being responsible for specific implementation. The 2022 Safety Responsibility Letter was inked
to strengthen the Company's safety work with a signing rate of 100%. The Company implements dual prevention mechanism measures and
has formulated systems such as Regulations on Safety Production Responsibility Regulations on Fire Safety Management Regulations on
hazard Management Accident Investigation Report Regulations on Safety Protection and Control of Female Employees and Regulations on
Appotronics always puts safety production in an important position with the construction of a safety production oriented scientific and Management of Labor Protection Articles. In addition both the Company and its subsidiaries have obtained the ISO 45001 occupational health
technological innovation enterprise as the dominant factor actively shoulders the main body responsibilities continuously innovates and and safety management system certification.implements safety management measures fulfills the legal responsibility of safety production strengthens the due diligence and supervision
of safety production and carries out various work such as safety hazard investigation and safety operation guarantee so as to strengthen the At the same time the Company prevented safety risks improved emergency response capability comprehensively investigated potential
safety and provide a solid ground for the stable growth and development of the Company. safety hazards carried out regular safety inspections eliminated potential accident hazards carried out post investigation and analyzed
countermeasures and prevention measures. In addition the Company prepared emergency plans simulated accident processes verified the
Indicator Unit 2022 feasibility of emergency plans conducted emergency drills and tested the reliability of emergency response capabilities. In 2022 the Company
organized various internal safety inspections and found a total of 166 potential safety hazards all of which were rectified with a safety hazard
0 rectification rate at 100%. Extraordinarily serious accident
Serious accidents 0
Safety accident
Major accidents 0
Ordinary accidents 1
Safety hazard elimination rate % 100%
Safe production Number of safety emergency drills time 1
ISO45001 occupational health and safety management system certification Safety inspection
Number of participants in safety emergency drills Person/time 15
Number of special occupational disease
Person/time 42
physical examinations
Strengthening security
Number of occupational disease deaths Person 0
measures
Number of work-related deaths Person 0
Employee safety training hours Hour 186
Building a safety culture
Number of participants in safety training Person/time 93
Registration form for emergency plan
2022 Appotronics safety responsibility letter signing ceremony filing of production safety accidents in
production and business units
PAGE 75/76APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Prevention of occupational diseases
Appotronics attaches great importance to the physical and mental health of employees establishes a comprehensive employee health preven-
tion system and formulates systems such as the "Occupational Health Management Regulations" and "Occupational Disease Identification
and Protection Control Regulations" to ensure the occupational health of employees. The Company regularly organizes employees to partici-
pate in annual occupational health examinations every year establishes employee health records and passes international standards for
environment health and safety (EHS) and OHSAS18000 certification.In 2022 no suspected cases or acute occupational disease incidents of occupational diseases occurred throughout the year. The existing office
environment does not have significant occupational disease hazards and the overall risk of occupational diseases is controllable.Emergency drill
Employee physical examination Regular inspection report on occupational hazards
Safety and health culture
The safety culture helps to enhance employees' safety awareness and safety literacy. Appotronics popularizes various safety knowledge and
operating procedures to all employees through various forms such as conducting safety training lectures regularly organizing safety drills
and holding safety culture promotion month activities to improve employees' safety awareness and emergency response capabilities. The
Company's safety culture training covers various departments and positions and corresponding safety culture training plans are developed for
different job responsibilities and risk characteristics to ensure that employees fully understand various safety operating procedures and
always maintain a high level of vigilance and sense of responsibility such as the "Cardiopulmonary Resuscitation First Aid" training. In 2022
the Company held a total of 12 monthly evaluations and each department's security person was able to sort out evaluation materials in
accordance with the "Quantitative Evaluation Measures for Safety Management of Appotronics" and execute them accordingly.Appotronics promotes a series of safety production month activities every year to promote safety production culture. In June 2022 when the
national "Safety Production Month" was launched the Company initiated a safety production training activity with the theme of "Abiding by
the Safety Production Law and Being the First Responsible Person" closely following the theme of the Safety Production Month activity. In Safety Production Month series activities - Poster&banner promotion
order to continuously improve the performance ability of safety officers in various departments the Company hired experts to help safety
officers in various departments solve difficulties encountered in their work from three dimensions: on-site management requirements risk
classification and control and hidden danger investigation system imbedded with the Company's production and operation characteristics.The safety officers raised questions about practical problems encountered in daily work and life and the training teachers answered them with
a combination of the theory and practice.PAGE 77/78APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
08
Reliable environmental and climate management
PAGE 79/80APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Climate change risks Countermeasures
The implementation of the national
Detailed disclosure of climate information dual carbon target requires stricter disclosure requirements for corporate
Policy and legal risks cl imate and other related emission
attend to climate risks and opportunities reduction information and companies need to invest more in emission reduc-
tion to respond to the national call. Actively pay attention to international policies or relevant
laws and regulations in the field of dual carbon emissions
The achievement of emission reduc- strengthen learning and timely response and actively carry
Risk and opportunity analysis tion targets poses new demands for out energy conservation and emission reduction work;
technological upgrading and there is
Appotronics with the impact of climate change on company operations in mind identifies climate change risks and opportunities and takes Technological risks an urgent need to develop low-carbon In technology research and development and product design
effective response measures referring to the initiatives of the Task Force on Climate-Related Financial Disclosure (“TCFD”). and environmentally friendly technol- energy conservation and environmental protection is consid-
Transforma- ogies and products. ered as one of the important factors and low-carbon tech-
1.Governance disclosure: nologies in the industry and market are paid attention to tion risk
and cooperation is introduced in a timely manner;
As the first person responsible for ESG the Chairman attaches great importance to the potential impact of climate change on the company's Consumers and customers are willing
operations. The company will identify evaluate manage and actively respond to climate related risks and opportunities internally. The ESG to c ho ose pro duc ts that are more Actively develop green and low-carbon technologies and
informal working group and business departments conduct data collection and risk governance while the board of directors and management l o w - c a r b o n a n d e n v i r o n m e n t a l l y products to meet market demand;
friendly while the high demand for
supervise the overall work. Market risk
emission reduction throughout the Continuously improve the disclosure of company environ-
2. Climate risk analysis and management ent i re industr y c ha in may lead to mental information and enhance the confidence of stakehold-
increased costs of raw materials and ers in the Company.energy.Climate change risks Countermeasures
Due to climate related events affect-We have formulated the “Emergency Plan for Natural Disas- Reputation risk ing the company's reputation custom-ter Accidents” established corresponding warning and er loss may occur.resp onse mechanisms and cont inuous ly up dated and
improved them based on actual situations;
Purchasing corresponding insurance for potential damage to
Since the main business site is locat- fixed assets will effectively reduce economic losses; 3.Climate opportunity analysis and management
ed in coastal areas sudden risks such
Acute risk (typhoon as typhoon rainstorm and high tem- Based on past exper ience the Company has not been
rainstorm and other perature and long-term risks such as exposed to significant climate risk hazards under extreme
Physical ex t r e m e w e a t h e r ) sea level r ise may have a cer ta in weather conditions mainly affecting employee work efficien-
risks chronic risk (continu- impact on the daily operation of the cy. Thanks to experience during the COVID-19 pandemic the
o u s h i g h t e m p e r a - c o m p a n y s u c h a s r e d u c e d s t a ff Company provides employees with technical support for
ture drought etc.) efficiency damage to fixed assets working from home which can ensure normal online office T h a n k s t o t h e l o w e n e r g y The company strengthens the Laser display a national strategic Communicate more frequently
such as production equipment or order and work efficiency has not significantly decreased consumption energy-saving and d i s c l o s u re of i n fo r m a t i o n o n emerging industry will benefit with the industry thereby jointly
other potential economic losses. according to monitoring; environmentally friendly charac- low-carbon products and zero from the dual carbon goal and promoting the acceleration and
teristics of lasers the Company's carbon governance which has receive more policy support; upgrading of the industrial chain.On the production side measures such as optimizing produc- tec hno l o gy a nd pro du c ts a re the opportunity to gain a posi-
t ion p lans effic ient product ion organizat ion and lean more eas i ly welcomed by the tive reputation for sustainable
production through technology are taken to effectively market and have the opportunity development and gain the atten-
ensure production rhythm. to gain favor in emerging mar- t i o n a n d b u y i n g o f r e l e v a n t
kets under the low-carbon econ- domestic and foreign investors
omy; and investment institutions;
PAGE 81/82APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Goals and action planning
Appotronics will continue to promote emission reduction fully utilize its technological research and development advantages actively carry
out low-carbon technology research and development continuously improve various production and manufacturing processes increase the
proportion of renewable energy use effectively reduce the generation of wastewater exhaust gas and solid waste and actively contribute to
the national dual carbon goal.Figure 3 Level 1 energy
A sound environmental management system Figure 4 Energy efficiency labeling and testing laboratory filing system efficiency mark for Appotronics’s products
emphasize green production and operation
Practice green production
Appotronics strictly adheres to national and local environmental protection laws and regulations closely monitors changes in laws and regula-
Environmental management mindset and system tions and makes timely adjustments. Under the principle of green production the Company continuously optimizes production processes adopts advanced energy-saving technologies ensures minimal environmental impact during the production process promotes sustainable
In 2022 Appotronics took the sustainable development as its responsibility incorporating environmental benefits and environmental manage- development and environmental protection and contributes to the beautiful future of human society. In 2022 the Company did not receive
ment into the entire process of enterprise operation and management with significant results. It was awarded the "Green Leading Enterprise" any environmental complaint from environmental protection departments relevant organizations or companies and no individual or unit
by the CEC. The Company's products designed strictly in accordance with energy-saving and green requirements have passed the China complaint occurred nor did any environmental pollution incident.Certification Center for Energy Conservation Product (“CECP”) certification. The Company obtained the "Excellent Enterprise Award" by the The environmental impact of the Company's current production and activities is very low and the generated wastewater only produces very
Environmental Development Center of the Ministry of Ecology and Environment a model for the industry. little exhaust gas and noise after legal treatment. At the same time the Company entrusts a qualified third-party environmental testing
agency to test the wastewater/exhaust gas/noise emitted by the Company every year to ensure that the Company's production wastewater
does not pollute the external environment. In April 2022 the Company commissioned a third-party environmental testing agency to test the
wastewater exhaust gas and noise generated by the Company's production. The testing reports numbered R22322809 and R22112633-A
showed that the wastewater exhaust gas and noise all met the requirements of national and regional laws and regulations.Environmental indicators of the company
Office and domestic wastewater Office water consumption Office kitchen waste and
household waste
3551 cube 3291 cube 3202 cube
Figure 1 Green leading enterprise Figure 2 Excellent Enterprise Award
During the efforts to strictly control product energy efficiency indicators the DQA laboratory of the Company got recognized by the China Office electricity consumption Total amount of hazardous waste Total amount of general
Institute of Standardization and authorized by the Energy Efficiency Testing Laboratory thus its energy efficiency testing capabilities national- industrial solid waste
ly recognized. The energy efficiency testing report issued by the laboratory can be directly submitted to the Energy Efficiency Labeling 434795 kilowatt-hour 2.75 tons 9.93 tons
Management Center of the China National Institute of Standardization for energy efficiency filing.PAGE 83/84APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
In 2022 the average water consumption per product produced by the Company's factory in the Shenzhen Fuyong district decreased by 56.67%
year-on-year and the average electricity consumption decreased by 29.39% year-on-year.decreased compared with the same decreased compared with the same
period last year56.67% period last year29.39%
Figure 6 IECQ conformity certificates
The specific environmental factors affecting the company are as follows
The domestic wastewater generated at the Company's office is treated uniformly by the office building and industrial
park property. After reaching the standard through pre-treatment it is discharged into the municipal sewage pipe
network. During the reporting period third-party testing institutions conducted tests on the wastewater generated by
the Company's production activities in accordance with the "Guangdong Provincial Local Standard Water Pollutant
Discharge Limits" test results all meeting the discharge standards.The Company produces relatively small amounts of waste gas from production and activities the majority being
tin-containing waste gas and non-methane hydrocarbons which are treated through UV photolysis activated carbon
The water consumption of each product Average electricity consumption adsorption devices air purification equipment and others. After treatment the concentration of waste gas emissions
meets the environmental protection standard "Emission Limits of Air Pollutants" (DB44/27-2001 Level 2 standard) in
the location of the production and operation entity. After a third-party testing agency is commissioned for testing and
the standards are met the waste is released.The Company's waste is mainly divided into three categories: recyclable non-recyclable and hazardous waste which
are collected separately and transferred to the renewable resources company for compliance treatment. The Company
verifies the business qualifications of the renewable resources company every year and signs relevant recycling
contracts with it; In addition the Company pays relevant management fees to the property every month to ensure that
the waste generated by the company does not have an impact on the environment.The noise generated by the Company's production and activities is very low. In April 2022 a third-party testing agency
conducted testing on the production site in accordance with the emission standard for industrial enterprises noise at
Figure 5 Environmental management system certifications boundary (GB12348-2008) and the results all met the emission standards.PAGE 85/86APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
The Company has formulated the "Chemical Hazardous Materials Control Procedure" in accordance with relevant regu-
lations guiding employees to manage chemicals setting up specialized areas for storing chemicals and confirming
on-site that the management transfer and recycling of chemicals meet the requirements.The Company has formulated the "Emergency Plan" and "Emergency Preparedness and Response Control Procedure"
for emergency accidents involving chemicals and fires. Safety officers are assigned to conduct daily safety inspections
which are combined with departmental inspections. Employees are trained on firefighting knowledge and emergency
plans for fire accidents are prepared. The on-site inspection shows that the management meets the requirements.Regular energy-saving inspection of office areas
The Company has formulated the "Energy and Resource Consumption Control Procedure" and related environmental
goals designed to guide the company's employees to control energy and resource consumption. The administrative
department conducts monthly statistics on the Company's water electricity and office paper use warning employees
to save water and electricity and prevent waste.Through on-site confirmation it can be determined that all environmental factors are effectively controlled according
to the control methods in the "Environmental Factor Checklist" without any phenomenon of running emitting
dripping or leaking. The management of chemicals the use and utilization of resources and fire management all comply
with the requirements of laws and regulations collected by the Company.Case: Appotronics advocates green office and resource regeneration and recycling
Appotronics actively advocates resource regeneration and recycling adopting a series of sustainable measures designed to
reduce the impact on the environment and enable effective utilization of resources. The Company focuses on the reuse of
Promote green operations waste and the recycling of resources such as waste paper baskets at the front desk for storing A4 paper that has been used on
one side for recycling. After removing the battery from the remote control returned by the after-sales service it will be used as
During the daily operation Appotronics focuses on cultivating employees' awareness of environmental protection and encourages everyone office supplies and sent back to the employees in need for use. The materials and decorations used in various activities every
to use environmentally friendly products and services in their work and life. At the same time the Company has taken various green office year are reused as much as possible. The Company also promotes environmental protection internally guiding employees to
measures implementing garbage classification in public areas pasting energy-saving signs and continuing to promote measures such as start from their daily work and life and practice a green lifestyle.water-saving electricity saving paper saving video conferencing electronic office reducing office and household waste generation and waste
recycling in order to realize green office.Appotronics vigorously promotes digital construction improving office efficiency while also saving paper printing. The Company has estab-
lished an online work platform system to realize online approval of office service contracts and introduced electronic signature services for Case: CINEAPPO advocates energy conservation and environmental protection
printing and stamping. Data linkage is carried out between ERP procurement contracts and CRM sales contracts reducing a large amount of CINEAPPO always adheres the energy conservation and environmental protection advocating for the utilization of recycled
procurement contract printing and stamping which helps to improve the overall office efficiency of the Company and reduce paper consump- office waste paper in terms of green office. It advocates for energy conservation and require its employees to keep their lights
tion. projectors and air conditioning turned off whenever they leave the office or conference room in order to maximize energy
conservation. In 2022 the company realized paperless office work the promotional manual materials basically shifted to the
electronic from the paper version practical environmental protection actions.PAGE 87/88APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
09
Resilient and sustainable procurement
PAGE 89/90APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
In addition the Company has established a qualified supplier management evaluation
mechanism for suppliers which evaluates their performance based on relevant factors
and divides them into excellent suppliers qualified suppliers and suppliers to be
Responsible supply chain improved. For a supplier with environmental risk or a score of "environmental require-ments" falling below 65% it is considered unqualified even if the total score ≥ 60.Environmental protection score rate (SR) Environmental risk level
Appotronics advocates the construction of a responsible supply chain ensuring that suppliers comply with various regulations in terms of SR≥85% Low-risk
ethics laws environment health and safety provide high-quality reliable and sustainable products and adhere to achieving mutual trust
and reciprocity during the process. The company attaches great importance to cooperation with suppliers and strategic partners actively 85%>SR≥75% Medium-risk
implements clean procurement and responsible procurement chooses to purchase environmentally friendly raw materials and actively layout Supplier Social Responsibility
the core areas and links of the industrial chain as an important component of the Company's production and operation. The Company contin- 75%>SR≥65% High-risk Commitment Letter
ues to strengthen supplier corporate responsibility management standardize procurement transaction behavior improve the sustainable
competitiveness of the supply chain and work together with suppliers to develop and build a responsible value chain. In 2022 the Company's
responsible procurement ratio was 100%.Strengthen supplier management
Appotronics places emphasis on supplier management in all aspects of production
to ensure the stability reliability and sustainability of the supply chain helping
the company reduce costs increase efficiency and enhance competitiveness and
risk management capabilities. In 2022 the Company upgraded the supply chain
system established collaborative interfaces between the supply chain and other
departments internally strengthened communication and linkage between Agreement for Control Restricted Hazardous Substances
suppliers customers and the supply chain externally and conducted overall
upgrading and capacity reconstruction of the supply chain system throughout.The company has formulated the "Supplier Development and Management
Regulations" to standardize the introduction and internal workflow of new
suppliers ensure the QCDS of newly introduced suppliers and clarify the assess-
ment and management system for qualified suppliers. Figure 1 Supplier Development and
Management Regulations Conflict Minerals
At the same time the company implements the accountability system clarifies
the division of responsibilities for supplier assessment allocates different responsibilities to different departments organizes and optimizes
the supplier resource pool and timely optimizes procurement strategies. In addition the Company has established an inventory traffic light
warning mechanism to increase inventory management and improve turnover efficiency. The specific minerals produced by the Democratic Republic of the Congo and its surrounding
countries have become a source of funding for conflict forces which may contribute to human
rights violations and ecological damage caused by the conflict. Due diligence on conflict minerals
Promote green transformation of the supply chain is an important manifestation of corporate social responsibility and relevant enterprises have
the responsibility to actively promote their development and prevent the occurrence of improp-
Appotronics encourages assists and supports suppliers to fulfill continuous improvement of social and environmental responsibilities includ- er behavior. Non Use of Conflict Minerals
ing improving energy efficiency reducing carbon emissions reducing waste generation promoting sustainable procurement protecting labor Commitment Letter
rights etc. and promoting the transparency of the supply chain. The Company and suppliers jointly develop implement and supervise Appotronics adheres to responsible mineral procurement and signs the "Non Use of Conflict Minerals Commitment Letter". In accordance with
improvement plans to ensure the actual effectiveness of the improvements. The Company has formulated the "Supplier Environmental the " Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas " issued by the Organiza-
Requirements Control Regulations" to promote the improvement of supplier environmental performance to protect the interests of customers tion for Economic Cooperation and Development (“OECD”) it ensures that the procurement of raw materials for its own and all products in the
and consumers expand the impact of the Company's environmental policies and jointly promote social environmental activities. The Company supply chain do not involve minerals from conflict areas.signs a "Supplier Social Responsibility Commitment Letter" with suppliers to ensure that they comply with the commitments of these agree-
ments hold suppliers accountable for their violations and ensure that bad behavior is corrected. The Company declares that it strictly complies with international organizations and industry regulations does not accept the use of "conflict
minerals" from the Democratic Republic of Congo and surrounding countries and regions and requires all suppliers to trace the sources and
regulatory chains of gold (Au) tantalum (Ta) tin (Sn) tungsten (W) cobalt (Co) and mica (Mica) contained in their products to reasonably
ensure that its source complies with the OECD's Due Diligence Guidelines for Responsible Mineral Supply Chains from Conflict-Affected and
High-Risk Areas or equivalent and recognized due diligence frameworks.PAGE 91/92APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
10
Influential social welfare
PAGE 93/94APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Public welfare assistance to agriculture
Upon the information of marketing difficulties of agricultural products in Gantang Town and Huaxi Township of Qianxi Guizhou Province
promote strengthen promote technol- cultivate basic Appotronics initiated the "2022 Mid-Autumn Festival Public Welfare and Agricultural Aid Action" project to help poor areas solve the problem enhance corpo- technological connections ogy populariza- technology of agricultural product marketing by purchasing instead of direct assistance. The Company successfully contacted the person in charge of the rate image innovation with society tion talents local agricultural assistance platform through the Qianxi Youth League Committee and purchased thousands of local agricultural products to
assist in rural revitalization through practical actions.Public welfare contribution (Unit: RMB 10000)
135.77
8
20212022
Appotronics an enthusiastic public welfare enterprise has always been committed to fulfilling social responsibility and promoting the devel-
opment of public welfare undertakings. We deeply understand that enterprises are not only pursuers of commercial value but also bearers of
social responsibility actively contributing to society. The Company actively participates in rural revitalization technology popularization and
public welfare activities contributing to society. At the same time the Company provides better support and assistance for public welfare Talent revitalization
undertakings through technological innovation and contributes to promoting technological innovation and cultivating technological talents.Appotronics helps create a space for young
entrepreneurs add ing "edge" to youth
entrepreneurship and employment. At the
beginning of 2022 the Guizhou Qianxi Youth
Maker Space donated by the company was
Rural revitalization talent revitalization officially unveiled as a local youth service
platform guiding young people to start
businesses and employment correctly and
assisting in the revitalization of rural talents.Appotronics actively practices the Th e Co m p a n y u s e d h a rd wa re p ro d u c ts
social responsibility as an industry equipped with ALPD laser display technol-
leader continuously responds to ogy to create a youth entrepreneurship
the call for rural revitalization and center and youth cinema featuring a100 inch
contributes to the cause of rural high-definition giant screen for the makerrevitalization through “purchasing space. It will focus on serving local youth inas a substitute” and “technology to terms of entrepreneurship and employmentassist agriculture”. In 2022 recom- training and ski l l enhancement a bridge
mended by the Guizhou Qianxi connecting youth entrepreneurship men-
Youth League Committee the tors employers and relevant government
Company was awarded the "Chun- Appotronics awarded the "Chunhui Action Contribution Award" in Guizhou departments. Assist in creating a youth maker space in Qianxi Guizhou
hui Action Contribution Award" by Organization Department of the Guizhou Province for its actions to revitalize talents and assist agriculture
in Qianxi.PAGE 95/96APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
Popularize technology and build the brand Jointly fight the COVID-19 watch out for and
help each other
Appotronics focused on enhancing connections and cooperation with the society has built an urban science popularization base designed to
promote the popularization of technology and talent cultivation improve the public welfare image and commercial value of enterprises and
allow more people to enjoy the convenience brought by technological innovation. The "writing on the cloud" on the May Fourth Youth Day Amid the COVID-19 pandemic last year Appotronics maintained a high sense of social responsibility and mission actively participated in the
and the intelligent large screen for rural areas have demonstrated the Company's deep accumulation and innovative ability in the field of anti-pandemic work and overcame difficulties with all sectors of society. The Company responded to the national call for COVID-19 prevention
technology while also spreading aerospace knowledge and promoting the astronauts’ spirit. and control promptly supporting pandemic prevention and medical treatment work in areas such as public health and community services. At
the same time the Company strengthened internal COVID-19 prevention and control adopted strict protective measures and ensured the
Popular science base health and life safety of employees.The Company continues to support Shenzhen's urbanization strategy of building a "child friendly city" and has been awarded the title of To show respect for the anti-pandemic medical staff the Company in April 2022 donated 300 laser projectors with a total value of RMB 1.2597
"Nanshan District Science Popularization Base". Having a science popularization base is an important measure for the Company to practice million to the Shenzhen Health Commission through the Red Cross Society of China Shenzhen Branch. Those projectors were distributed in
social responsibility promote technological innovation and sustainable development. It helps to promote the concept of technological innova- batches by the Shenzhen Health Commission to 29 medical institutions including the Shenzhen Center for Disease Control and Prevention and
tion promote technology popularization and talent cultivation and strengthen connections and cooperation with the society. In 2022 the Shenzhen Center for Prehospital Care for the purpose of family education for the children of anti-pandemic medical workers.Appotronics's science popularization base received a total of 6 children's science popularization public welfare visit projects with approxi-
mately 100 children visitors.Donating to Shenzhen Health Commission to help fight against the pandemic
Youth science popularization public welfare activities
Aerospace dream
In order to spread aerospace knowledge and promote
the astronauts’’ spirit the Company in collaboration
with the CASCI launched a series of activities called
"Radiance Plan - Technology Assists Rural Revital-
ization Building Aerospace Dreams with Light" and
entered Badu Yao Township in Tianlin County of
Guangxi delivering intelligent screens to Liulin
Village Bailu Village and Pingfeng Village. With the
intelligent large screens villagers can conveniently
and efficiently carry out daily village affairs training
and learning holiday activities and other daily
activities. Jointly initiated the "Radiance Plan" with CASCI
PAGE 97/98APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
GRI standards Disclosure items Chapter name
Strategy 102-16 Values principles standards and norms of behavior Preface:Approaching Appotronics
Appendix
102-18 Governance structure Responsible ESG management
102-20 Executive-level responsibility for economicenviron-
GRI Index mental and social topics Responsible ESG management
Governance 102-21 Consulting stakeholders on economic environmental
GRI standards Disclosure items Chapter name and social topics Responsible ESG management
GRI 102:General disclosure 102-22 Composition of the highest governance body and
its committees Responsible ESG management
102-1 Name of the organization About the Report 102-33 Communication of important concerns Responsible ESG management
102-2 Activities brands productsand services Preface:Approaching Appotronics 102-34 Nature and total number of important concerns Responsible ESG management
20-22/F High-Tech Zone Union Tower 102-40 List of stakeholder groups Responsible ESG management
102-3 Location of headquarters No.63 Xuefu Road Nanshan District
Shenzhen Guangdong Province
20-22/F High-Tech Zone Union Tower 102-42 Identifying and selecting stakeholders Responsible ESG management
102-4 Location of operations No.63 Xuefu Road Nanshan District Stakeholder engagement
Shenzhen Guangdong Province 102-43 Approach to stakeholder engagement Responsible ESG management
102-6 Markets served Preface:Approaching Appotronics
102-44 Key topics and concerns raised Responsible ESG management
102-7 Scale of the organization Company employees growing together 102-45 Entities included in the consolidated financial
statements About the ReportOrganization profile
102-8 Information on employees and other workers Company employees growing together 102-46 Defining report content and topic boundaries Responsible ESG management
102-9 Supply chain Resilient and sustainable procurement 102-47 List of material topics Responsible ESG management
102-10 Significant changes to the organization and 102-48 Restatements of information Responsible ESG management
Resilient and sustainable procurement
its supply chain
102-49 Report changes About the Report
102-11 Precautionary principle or approach Diversified corporate governance
Reporting practices 102-50 Reporting period About the Report
102-12 External initiatives Innovation leads the vigorous development of the industry 102-51 Date of most recent report About the Report
102-13 Membership of associations Innovation leads the vigorous 102-52 Reporting cycle About the Reportdevelopment of the industry
102-53 Contact point for questions regarding the report Feedback
102-14 Statement from senior decision-makers Preface-Chairman Statement
102-54 Claims of reporting in accordance with the GRI
Strategy Standards About the Report
102-15 Key impacts risks and opportunities Diversified corporate governance
102-55 GRI content index Appendix-GRI Index
PAGE 99/100APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
GRI standards Disclosure items Chapter name GRI standards Disclosure items Chapter name
103-1 Explanation of the material topic and its boundary Responsible ESG management GRI 307:Environmental
Compliance 307-1 Violation of environmental laws and regulations NA
GRI 103:Management
Approach 103-2 The management approach and its components Responsible ESG management 308-1 New suppliers screened using environmental
standards Resilient and sustainable procurement
GRI 308:Supplier
Environmental
103-3 Evaluation of the management approach Responsible ESG management Assessment
308-2 Negative environmental impacts in the supply
chain and actions taken Resilient and sustainable procurement
201-1 Direct economic value generated and distributed Preface:Approaching Appotronics
GRI 201:Economic Company employees growing
performance 401-1 New employee hires and employee turnover together
201-2 Financial implications and other risks and opportu- Reliable environmental and climate
nities due to climate change Management GRI 401:Employment
401-2 Benefits provided to full-time employees that are Company employees growing
205-2 Communication and training about anti-corruption not provided to temporary or part-time employees together
policies and procedures Diversified corporate governance
GRI 205:Anti-Corruption
403-5 Worker training on occupational health and safety Company employees growing
205-3 Confirmed corruption incidents and actions taken Diversified corporate governance together
Company employees growing
302-1 Energy consumption within the organization Reliable environmental and climate 403-6 Promotion of worker healthManagement together
GRI 302:Energy
302-4 Reduction of energy consumption Reliable environmental and climate Management GRI 403:Occupational 403-7 Preventing and mitigating occupational health and Company employees growing Health and Safety safety impacts directly related to business relationships together
303-2 Management of water discharge-related impacts Reliable environmental and climate Management Company employees growing
403-9 Work-related injuries together
303-3 Water withdrawal Reliable environmental and climate Management
Company employees growing
GRI 303:Water and Effluents 403-10 Work-related health issues together
303-4 Water discharge Reliable environmental and climate Management
Company employees growing
404- 1 Average hours of training per year per employee together
303-5 Water consumption Reliable environmental and climate Management
GRI 404:Training 404-2 Programs for upgrading employee skills and Company employees growing
GRI 305 Emissions 305-5 Reduction of GHG emissions Sustainable R&D innovation and Education transition assistance programs together
404-3 Percentage of employees receiving regular Company employees growing
GRI 306 Effluents and Waste 306-2 Total amount of waste by type and disposal method Reliable environmental and climate Management performance and career development reviews together
PAGE 101/102APPOTRONICS 2022 EnvironmentalSocial and Governance (ESG)Report
GRI standards Disclosure items Chapter name Feedback
Thank you very much for taking time out of your busy schedule to read the 2022 ESG Report of Appotronics. In order to improve the activities
Diversified corporate governance of Appotronics in the environmental social and governance areas and further enhance the Company’ s ability on sustainable development with closer GRI 405:Diversity and
Equal Opportunity 405-1 Diversity of governance bodies and employees communication with all walks of life we sincerely look forward to your valuable comments and suggestions towards our work and reportsCompany employees growing together
Please fill out the feedback form and send it to the following email address:csr@appotronics.cn
Your information
GRI 406:Non-discrimination Management plan Company employees growing
together Name: Tel:
Company: Email:
GRI 408:Child Labor Management plan Company employees growing Your overall assessment of the ESG Report of Appotronics is:
together
□ Extremely satisfied □ Very satisfied □ Satisfied □ Not satisfied □Dissatisfied
GRI 409:Forced or Your evaluation of our company's ESG responsibilities fulfillment:
Compulsory Labor Management plan Company employees growing together Financial responsibility:
□ Extremely satisfied □ Very satisfied □ Satisfied □ Not satisfied □Dissatisfied
Social responsibility:
GRI 413:Local Communities Management plan Influential social welfare □ Extremely satisfied □ Very satisfied □ Satisfied □ Not satisfied □Dissatisfied
Environmental responsibility:
□ Extremely satisfied □ Very satisfied □ Satisfied □ Not satisfied □Dissatisfied
414-1 New suppliers screened using social standards Resilient and sustainable procurement Whether do you think this report can reflect the impact of our company's social responsibility practices on the
GRI 41:Supplier Social economy society and environment?
Assessment
414-2 Negative social impacts in the supply chain and □ Well □ Relatively well □ Generally □ Not very much □NoResilient and sustainable procurement
actions taken What do you think of the clarity accuracy and completeness of the information data and indicators disclosed
in this report?
GRI 416 Customer Health 416-1 Assessment of the health and safety impacts of Clarity:
product and service categories Safe and reliable products □ Extremely satisfied □ Very satisfied □ Satisfied and Safety □ Not satisfied □Dissatisfied
Accuracy:
□ Extremely satisfied □ Very satisfied □ Satisfied □ Not satisfied □Dissatisfied
GRI 417:Marketing and 417-1 Requirements for product and service information
Labeling Safe and reliable productsand labeling Completeness:
□ Extremely satisfied □ Very satisfied □ Satisfied □ Not satisfied □Dissatisfied
Do you think the content arrangement and layout design of this report facilitate reading?
GRI 418:Client Privacy 418-1 Substantiated complaints concerning breaches of
customer privacy and losses of customer data None □ Yes □ Roughly □ No
Do you have any other comments on Appotronics’ ESG work?
GRI 419:Socioeconomic 419-1 Non-compliance with laws and regulations in the
Compliance social and economic area None
PAGE 103/104
提升卡
置顶卡
QQ好友和群
QQ空间
I
个股精选
行业精选
概念精选
地区精选
鸿福期货
股市分析
技术指标
炒股经验
月亮看盘
抓妖罗神
个股精选(
行业精选(
概念精选(
地区精选(
鸿福期货(
股市分析(
技术指标(
炒股经验(
月亮看盘(
抓妖罗神(
期货市场(
天天红(
河源巴伐利亚庄园(
燕塘乳业(
易方达基金(
广州肿瘤治疗(
广州网站建设(
夏日狂欢祭(
破晓黎明(
命运时空(
用户须知(
帮助中心(
通知公告(
