2022 Environmental
Social and Governance (ESG) Report
MONTAGE TECHNOLOGY STOCK CODE：688008.SHMONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Content About This Report 1 Appendix I: Key Performance Indicators 50
Letter from our Chairman 2 Appendix II: GRI Content Index 52
About Montage Technology 3
Innovation Orientation 27
Quality Management 29 Talent Attraction 39
Clean Technology 30 Talent Development 40
Intellectual Property 31 Health and Safety 42
User Experience 32 Employee Care 43
0102030405
Corporate Innovation Supply Chain Employment Green
Governance Empowerment Management and Management and Development
and Quality Industry Harmonious and Social
Service Cooperation Workplace Contribution
Governance Structure 15 Supply Chain 34 Climate Change 46
Management Mitigation
Risk Management 17
Business Ethics 19 Responsible Minerals 35 Environmental Footprint 47
Sourcing
Information Disclosure 20 Reduction
Information Security 21 Industrial Synergy 36 Social Welfare and Charity 4 8
ESG Governance 23MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
About This Report
Overview Report Preparation Process
Montage Technology Co. Ltd. together with its subsidiaries (hereinafter "the Company" "we" or "Montage The contents of the Report have been determined in accordance with a systematic procedure. The
Technology") is here to release the first environmental social and governance report (hereinafter the relevant procedures include: forming working groups identifying key stakeholders conducting
"Report" or "ESG Report") which aims to expound the Company's management measures and work results interviews with the stakeholders identifying and prioritizing material ESG-related issues establishing a
in respect of environmental social and governance (hereinafter "ESG") and objectively disclose the KPI assessment system deciding the scope of ESG Report collecting relevant materials and data
Company's management and achievements in sustainable development to respond to the concerns of determining the framework preparing and designing report reviewing by department leaders and
stakeholders and the public. senior management group etc.Scope and Boundary of the Report
Acknowledgement and ApprovalThis report involves the information and data from January 1 2022 to December 31 2022 (hereinafter “theThis Report has been confirmed by the management and approved by the board of directors on April 27
reporting period" or "this year") with some of them traced back to and before 2021 or extended to 2023.
2023.
This report covers the relevant information and data of Montage Technology and its subsidiaries. For
details of the Company's business please refer to the 2022 Annual Report.Basis of Preparation Report Access and Contact
This report is prepared with reference to the GRI SSuussttaiinability Reporting SSttandards (hereinafter "GRI This report is published in electronic format and is available on the Shanghai Stock Exchange website
Standards") released by Global Sustainability Standards Board (GSSB) and the United Nations’ Sustainable (http://www.sse.com.cn) and the Company's website (https://www.montage-tech.com/). If you have any
Development Goals (SDGs). comments or suggestions on the Company's environmental social and governance disclosures and
performance please contact us in the following ways:
Tel：021-5467 9039
Source and Reliability Assurance Email：ir@montage-tech.com
The information and data disclosed in the Report derive from the statistical reports and formal documents
of the Company which have been reviewed by relevant departments. The Company confirms that there is
*This is translated from the Chinese version of the ESG Report. If there is any conflict between the Chinese
no misstatement or misleading representation contained in the Report and takes responsibility for the
and English versions the Chinese version shall prevail.truthfulness accuracy and completeness of the contents of the Report. Unless otherwise stated all the
monetary amounts in the Report are denominated in CNY.
01MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Letter from
Our Chairman Adhering to the spirit of craftsmanship and driving extraordinary growth with constant innovation
Facing the complex and severe external environment in the past year Montage Montage Technology's achievements rely on the joint efforts of all employees. training courses and career development opportunities to enhance the
Technology has always adhered to the corporate culture of "accelerating with In the past three years the Company's headcount has grown steadily nearly competitiveness of employees.focus and innovation" and the corporation mission "to make data transfer doubling from 334 at the end of 2019 to 641 at the end of 2022. Meanwhile we
more efficient and data computing more secure" and has been deeply are pleased to see that the senior staff are gaining more experience while the In terms of the environment the Company keeps up with the national
engaged in the two fields of interconnect chips and data-processing chips. new employees are also growing rapidly. In addition many of the young development strategy and helps achieve the "dual carbon goals". Based on
With continuous product innovation business expansion and substantial graduate employees have become key members of our team. the concept of green development we control emissions in the process of
growth in business performance Montage Technology has evolved from a office operation reduce the impact on the environment and promote green
champion in a niche market to a world-leading data-processing and With such an excellent workforce as the foundation we will be able to achieve and low-carbon sustainable development. As an IC design enterprise the
interconnect IC design company. an "acceleration" in business performance naturally as long as we identify the Company reduces the energy consumption of the industry through R&D
proper strategic course insist on "focus" and embrace "innovation". In innovation contributing to the goal of a "Green Earth". To achieve the
In the field of interconnect chips our product selection is expanding and addition the Company adheres to the development strategy of independent Company's coordinated and sustainable development with society and
increasingly competitive. On the one hand we continue to consolidate our innovation. In the past five years the Company has developed rapidly and environment we exercise our social responsibility by giving back to society
position as a global industry leader in our areas of expertise and take the lead achieved substantial growth in business performance. The operating revenue and organizing various voluntary
in developing international standards for DDR5 memory interfaces and was and net profit have both reached a new record high. Among them the activities such as establishing a
the first to release several new-generation products of DDR5 memory interface operating revenue increased from CNY 1.2 billion in 2017 to CNY 3.7 billion in charitable foundation engaging in a
chips. On the other hand Montage Technology leads the way in cutting-edge 2022. Especially in the last three years the operating revenue of the Company wide range of charity services like
technology of Compute Express Link (CXL) and released the world's first CXL was respectively CNY 1.8 billion CNY 2.6 billion and CNY 3.7 billion showing a education blood donation and
Memory eXpander Controller (MXC) in May 2022. What makes us especially strong momentum of annual growth. In addition the net profit of 2022 was fighting against epidemics.proud is that MXC was released at the most difficult time when the epidemic CNY 1.3 billion 3.7 times that of 2017.was raging in Shanghai and the project team was stationed at the Company Looking ahead to 2023 the digital
for two months and overcame many challenges. The product was later The Company upholds the spirit of excellence in ingenuity regards innovation economy will boom. As an IC design
adopted by Samsung Electronics and SK hynix for the development of CXL as the driving force and is committed to providing customers with high- enterprise that provides hardware
memory products. In addition in the past year we have also released performance and low-power chip solutions in order to better suit the support for the digital economy
engineering samples of DDR5 CKD and PCIe 5.0/CXL 2.0 Retimer which is customers' demands and support the Company's extraordinary growth. infrastructure the Company will focus
regarded as a significant milestone of the Company. The interconnect chip Meanwhile the Company is committed to the interests of the stakeholders and on the field of data-processing and
product line achieved a revenue of CNY 2734 million in 2022 setting a new takes adherence to business ethics and compliance with laws and regulations interconnect chips and provide high-
record. as the basic guidelines for business operations. The Company establishes a performance high-security and
compliant and harmonious operating environment and constantly strengthens high-reliability products for the digital
In the field of data-processing chips we have made important progress in the business risk management to ensure the healthy and sustainable development infrastructure through continuous
layout of two strategic products: Jintide CPU and AI chip. At present the of the Company's business. R&D innovation. Montage Technology
Company has released the 4th Gen Jintide CPU. In 2022 the sales revenue of will be dedicated to the contribution
the related product line reached CNY 940 million maintaining a steady growth. Our employees are strategic resources to realize enterprise innovation and of the high-quality development of
Our first-generation AI chip adopted the "near-memory computing" development. We give full play to Montage's strengths establish a sound the global digital economy! Dr. Howard Yang
architecture which is the most complex product developed so far. The R&D talent management system and adhere to the promotion of talent Chairman of the Board/CEO of
team grasped the opportunity completed the tape-out and successfully lit it globalization. The Company has built a three-dimensional training system for Montage Technology
up. management and employees at all levels and strives to provide professional
02MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
About Montage Technology
Founded in 2004 Montage Technology is a leading data-processing and interconnect IC design
company dedicated to providing high-performance and low-power IC solutions for cloud computing
and artificial intelligence markets and has two primary product lines—interconnect chips and Jintide
server platform. The Company was listed in July 2019 among the first batch of companies on SSE STAR
Market (Stock code: 688008.SH). Heaquartered in Shanghai the Company has branches in Kunshan
Beijing Xi'an Macau the USA and South Korea.Headquartered In
China
Shanghai
Branches In
China
Kunshan Beijing Xi'an Macau
Overseas
US Korea
03MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Milestones of Montage May 2022
Released the world's first CXL Memory eXpander Controller (MXC)
Technology
Pioneered trial production of Gen2 DDR5 RCD
Sep 2022
Released the world's first engineering sample of Gen1 DDR5 Clock
Driver (CKD)
Oct 2022
3rd Gen Jintide Server has passed the compatibility certification of
VMware
Sep 2020
Oct 2013 Achieved mass production Dec 2022
DDR4 Registering Clock of its PCIe 4.0 Retimers Released the world's first engineering sample of Gen3 DDR5 RCD
Jun 2008 Driver (RCD) and Data
Buffer chips were
DDR2 Advanced Memory certified Jan 2016
May 2004 Buffer (AMB) chips were Collaborated with
certified
Founded Tsinghua University and
Intel on development of
a new general-purpose 2021
processor Recognized as Single Champion Model Enterprise in Manufacturing
Industry and National Technological Innovation Demonstration
Enterprise
Aug 2011
Sep 2021
Jan 2006 DDR3 Register Buffer and Oct 2014 May 2019 The cumulative shipped quantity of Jintide CPU exceeded 100000 pcs
Achieved mass Memory Buffer chips were Won GSA Award for Achieved mass production of
production of its first certified Best Financially Managed 1st Gen Jintide CPU Oct 2021
chip Semiconductor Company Achieved the mass production and shipment of Gen1 DDR5 memory
Since its cumulative profit
interface chips and module supporting chips
Jun 2006 turned positive in 2011
Montage Technology has Jul 2019
Received its first been profitable for 12 Listed as one of the first batch
granted invention consecutive years of companies on the SSE STAR
patent Market 04MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Business Field
The Company has been deeply engaged in the two fields of interconnect chips and data-processing chips. It is committed to providing
high-performance and low-power chip solutions for cloud computing and artificial intelligence.RCD/DB
SPD/PMIC/TS
CKD
Memory
interface Jintide
related CPU
Interconnect Chips Data Processing
“Fast”Chips “Big”Chips
PCIe CXL
related related
AI
Chips
PCIe Retimer MXC
Focusing on high‐speed interconnect and high-performance data-processing related technologies
05MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Product Catalogue
06MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Major Products
Interconnect Chips Product Line
Memory Interface Memory Module Supporting Chips PCIe Retimer MXC
As the core logic devices of The DDR5 memory module As an ultra-speed Retimer chip Montage Technology delivered the world’s first
server memory modules requires three supporting meeting the PCIe high speed Compute Express Link (CXL) Memory eXpander
memory interface chipsare chips namely Serial Presence data transmission protocol the Controller (MXC) which enables significant expansion
of memory capacity and bandwidth to meet the
are mainly used to increase Detect (SPD) EEPROW with PCIe Retimer mainly solves the
growing demand for high-performance computing
the speed and stability of Hub Temperature Sensor (TS) problems such as misaligned
artificial intelligence and other data-intensive
memory data access. The and Power Management IC timing large loss and poor
applications.Company has successfully launched DDR2–DDR5 (PMIC). integrity when data is transmitted at high speed or
memory interface chips. over long distances in a data center. CKD
Montage Technology delivered the industry's first
The Company has successfully developed the engineering sample of Gen1 DDR5 CKD which supports
Montage Technology started producing Gen2 DDR5 memory module supporting chips working The Company has successfully mass produced PCIe data rates up to 6400MT/s and low-power
DDR5 RCDs in May 2022 and delivered the world’s with partners and achieved the mass production 5.0/CXL 2.0 Retimer providing stable and reliable management modes for next-generation desktop and
first Gen1 DDR5 Clock Driver (CKD) engineering and shipment. high-bandwidth and low-latency interconnect laptop memory in order to provide memory vendors
sample. solutions. with comprehensive and superior memory interface
solutions.Jintide Server Platform Product Line AI Chips
Jintide CPU Hybrid Security DIMM
Montage Technology’s Jintide CPU is an x86 Hybrid Security DIMMs are DIMM devices built The Company is currently developing an AI chip which
processor family with Pre-check (PrC) or Dynamic with Montage proprietary Mont-ICMT adopts a near-memory computing architecture and is
Security Check (DSC) functions for use on Jintide or (Inspection & Control on Memory Traffic) designed to solve the bottlenecks of AI computing such as
other general server platforms. technology to provide a more secure and limited CPU bandwidth performance and GPU memory
reliable memory solution for server platforms. capacity in inference applications with high data throughput
The Company has already mass-produced 3rd Gen Jintide CPU and therefore providing customers with a low-latency and high-
has released a new 4th Gen Jintide CPU. By continuously deepening To meet different application needs the Company has launched two efficiency AI computing solution.its expertise in Jintide CPU the Company enables surging computing series of products: Hybrid Security DIMM (HSDIMM) and Hybrid
power for cloud computing enterprise applications artificial Security DIMM-Lite (HSDIMM-Lite).intelligence and high-performance computing.
07MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Industry Status
As a leader in industry innovation the Company has great technical advantages and industry status and is actively engaged in the establishment and development of industry-related standards and
systems through international industry standard organizations to jointly promote the healthy and stable development of the industry.Market Position Industry Associations Industry Standards
One of the world's three major companies providing DDR4 Member of the Board of Directors of Joint Electron Device Leads the development of international standards for
memory interface chips Engineering Council (JEDEC) Solid State Technology DDR5 Gen1 Gen2 and Gen3 memory interface chips Gen1
Association a global organization in developing open MDB memory interface chip and other products
One of the world's two major companies providing complete
solutions for DDR5 memory interfaces and module supporting standards for the microelectronics industry
chips Actively participates in the standard formulation of the
Actively serves as chairman of three JEDEC committees Gen1 DDR5 CKD chips and DDR5 memory module
The Company's DDR4 and DDR5 memory interfaces have and sub-committees and has a strong voice in product supporting chips
successfully entered the international mainstream memory
server and cloud computing markets occupying significant standard developing in relevant niches
market shares worldwide Montage-invented "1+9" distributed buffer memory
Dr. Howard Yang Chairman and CEO of the Company is subsystem framework was adopted by JEDEC as an
One of the world's three companies that mass-produce PCle 4.0 the first recipient of the JEDEC Distinguished Executive international standard for DDR4 products and evolved
Retimers
Leadership Award and promoted as IEEE Life Fellow by into the "1+10" framework in DDR5 generation which
The second company in the world to mass produce PCIe 5.0/CXL the Institute of Electrical and Electronics Engineers (IEEE) continues to be an international standard for LRDIMMs and
2.0 Retimer as the basic architecture further derivates an international
standard for MRDIMMs
The first company in the world to release CXL Memory eXpander
Controller (MXC)
The world's first company to deliver DDR5 CKD engineering
samples
One of The world's 2nd Member of the The world's 1st
the world's Top 2 The world's 1stcompany to mass Board of Directors company to deliver company to deliver CKD DDR5 memory produce PCIe 5.0/CXL2.0 CXL Memory eXpander engineering sample
interface chip vendors Retimer of JEDEC Controller
08MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Corporate Culture
R
accelerating with focus & innovation
Corporate Vision Corporate Mission Corporate Culture
To become an innovative To make data transfer more Accelerating with focus and
international IC design company efficient and data computing innovation
focusing on data-processing more secure
and interconnect chips Adhering to the spirit of
craftsmanship
Driving extraordinary growth
with constant innovation
09
Verses by Su Zhe a poet of Song DynastyMONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Milestones in 2022
May Aug Sep
Released the world's first CXL Pioneered trial production of Partnered with Samsung Received two important honors Released the world's first
Memory eXpander Controller Gen2 DDR5 Registering Clock Electronics to deliver CXL a t W o r l d S e m i c o n d u c t o r engineering sample of Gen1
(MXC) Driver (RCD) memory products Conference DDR5 Clock Driver (CKD)
Oct Nov Dec
3rd Gen Jintide CPUs passed Dr. Howard Yang delivered a Dr. Howard Yang was Won two awards on Micron Released the world's first
VMware compatibility speech at the World Internet promoted as IEEE Life Fellow Supplier Day 2022 engineering sample of Gen3
certification Conference DDR5 RCD
10MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Financial Performance
In 2022 dedicated in the fields of data-processing and Operating revenue Unit: 100 Million CNY Net profit Unit: 100 Million CNY
interconnect chips Montage Technology steadily carried
Operating revenue 36.72 Net profit
out various works around its strategic objectives and
12.99
business plan and achieved satisfactory results in product 3672million 1299million
R&D and business development resulting in significant 25.62
growth in operating achievements. In 2022 the Company's 8.29
operating revenue net profit and sales revenue of the with a year-on- with a year-on-
interconnect chips product line hit a new record again. year increase of year increase of
43.33%56.71%20212022
20212022
Unit: 100 Million CNY Unit: 100 Million CNY
27.35 Total sales revenue
Total sales revenue of Jintide server
of interconnect chips platform 9.37
2735million 17.17 937million
8.45
with a year-on- with a year-on-
year increase of year increase of
59.30%10.80%
2021202220212022
11MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
2022 ESG Highlights
Economic Governance Green Community
Performance Performance Technology Engagement
*36% of Directors Supervisors * The Gen2 DDR5 memory interface * 6 volunteer activities were organised
and Senior Executives were females products consumed 5%-10% less * Donated goods and cash worth more
*100% attendance of Directors power than the Gen1 products than CNY 0.6 million
* For the same amount of computing
Revenue Supervisors and Senior Executives at tasks the power consumption of the the General Meeting Board of Directors
Meeting and Supervisory Board Meeting 4th Gen Jintide CPU was nearly 9%
*100% lower than the 3rd Gen 3672 of new employees CNY million * Annual GHG emission per employee
participated in cyber security training
was 3.11 tCO2e Employee
increased by 43.33%
Care
YOY
Innovation *100% labor contract signing rate and
Product commercial insurance coverage rate
* A total of 468 R&D staff accounting * 100% employee training coverage
Net profit for 73% of the total workforce Quality rate
* CNY 563 million was invested in R&D * 94% equity incentive comprehensive
coverage rate
1299 accounting for 15% of the operating
* Customer satisfaction was higher than
CNY million 90% * 29% female employees revenue
* Four products made their world * 0 quality accidents
* 117 employees won patent awards
increased by 56.71% debut among which CXL MXC is a * 100% suppliers responsible
YOY pioneer in the industry minerals sourcing audit coverage
rate
12MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Honours
National Intellectual Property Chairman of the Board was The 23rd China Patent Outstanding Performance Award
Advantage Enterprise promoted as IEEE Life Fellow Excellence Award Outstanding Quality Award
China National Intellectual Institute of Electrical and China National Intellectual
Micron Technology
Property Administration Electronics Engineers Property Administration
2021-2022 China High-Speed Interconnect
Second Prize of the Fourth Shanghai 2022 First Annual Excellent 2022 China Chip Award of Annual Significant Chip Technology Leader Award
Intellectual Property Innovation Award Security and Trustworthy Solution Innovation and Breakthrough Product
World Semiconductor Congress
Shanghai Municipal People's China Center for Information and Nanjing International
Government Z-TCIA Industry Development Semiconductor Expo
1301
Corporate
Governance
Montage Technology adheres to the responsibilities to all parties
and operates on the principles of honesty and integrity. The
sustainable development of the Company can be achieved by
continuously improving the governance structure strengthening
internal control and risk management safeguarding business ethics
and enhancing information disclosure and information security.Business Ethics and Compliance
Economic Performance
Information Disclosure and Transparency
Stakeholder Communication and Collaboration
Risk Management
ESG Governance
Network Security and Data Privacy
14MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Governance Structure Shareholders and General Meetings
To safeguard the legitimate rights and interests of the shareholders of the Company especially the small
Montage Technology is in strict compliance with the requirements of the Company Law of the People's
and medium-sized shareholders Montage Technology convened the general meeting in accordance with
Republliic off CChhiinnaa the Securities Law of the People's Republic of China the Code of Corporate Governance
the Company Law of tthe People's Republic of China the Securities Law of the People's Republiic of China
for Listed Companiies and other relevant laws and regulations. The Company has improved the corporate
the Rulles Governing the Listing of Stocks on the Shanghai Stock Exchange and other laws and regulations
governance system with clear responsibilities and standardized operations among the decision-making
and the relevant provisions of the Articles of Association of the Company to ensure that shareholders can
bodies supervisory bodies and management.participate in the shareholders' meeting in time to vote and exercise their relevant rights.The Company has established a corporate governance structure consisting of a Shareholders' Meeting a
During the reporting period Montage Technology held 3 general meetings including 1 annual general
Board of Directors and a Board of Supervisors. Under the Board of Directors the Company has established
meeting and 2 extraordinary general meetings convened by the Board of Directors. The three general
the Audit Committee the Remuneration and Appraisal Committee and the Nomination Committee. The
meetings were all held on-site and online and a total of 10 motions were audited. Meanwhile at the
Company has established a relatively sound corporate governance system to ensure sound operation.annual shareholders' meeting the Company presented the 2021 business performance and industry
development report to investors and communicated with shareholders about their concerns.Shareholders' Meeting
Directors and the Board of Directors
Board of Supervisors The 2
nd session of the Board of Directors of Montage Technology consists of 9 members and the board
includes 4 independent directors accounting for more than 44% to give full play to the role in safeguarding
the interests of shareholders especially the small and medium-sized investors and the Company. The board
includes one female director. The board members' specialties cover various fields such as industry
Board of Directors investment finance and law facilitate the board's effort to guarantee the Company's decision-making level
with a more comprehensive and integrated perspective and concept.Audit Committee
11%
22%
Remuneration and Appraisal
Committee 11%
Proportion of
Board Age 56% Independent 44%
Nomination Committee Diversity Directors
Board of Directors Office General Manager (Operation Team) 56%
40 and below 40-50 50-60 60 and above Independent Directors Non-independent Directors
Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 15MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
The Board of Directors has three committees including the Audit Committee the Remuneration and Supervisors and Board of Supervisors
Appraisal Committee and the Nomination Committee. The members are all directors and most of them are
independent directors. Each committee in accordance with the provisions of the Articles of IInnccoorrppoorraattiioonn Montage Technology strictly abides by the Company Law of the People's Republic of China and other laws
and the Bylaws gives full play to the professional advantages in accordance with duties and authority and and regulations. The Board of Supervisors was established to independently exercise the power of
makes professional opinions and recommendations in financial accounting business operation and risk supervision in accordance with the law and it shall protect the rights and interests of shareholders and the
management so as to provide strong support for the scientific decision-making of the Board of Directors. Company and supervise the daily operation activities. During the reporting period the Company's 2nd
Board of Supervisors was composed of three supervisors with 67% being female. The members of the
Supervisory Board include two representatives of non-employees and one representative of employees
Types of Committees
Position Name Gender ensuring that the Board of Supervisors has the ability to communicate extensively with shareholders and Remuneration and Nomination
Audit Committee employees and can safeguard the rights and interests of all shareholders.Appraisal Committee Committee
Chairman Howard Yang Male √
Position Name Gender
Employee Stephen Tai Male During the reporting period
Directors Chairman of the Board Yi Shi Female XiaoYan Xia Femaleof Supervisors
Non-Employee RongXin Li Male
6100%
Supervisor XiaoHong Cai Male
supervisory meetings attendance rate
Directors Brent Young Male of supervisors Employee representative ZhouJie Fang Female
ZhiYao Yin Male √
Gender-Diversified in Directors Supervisors and Senior Executives
ChangJiang Lv Male √ √Independent
Directors JingDong Liu √ √ √ Montage Technology is committed to building an inclusive work environment with equal opportunity while Male
maintaining the professionalism and diversity of directors supervisors and senior executives. During the
Bo Yu Male √ √ reporting period females accounted for 36% of the Company's directors supervisors and senior executives
67% of the Board of Supervisors and 50% of senior managers.
During the reporting period
%1
14.37.1
%4.3%
7 100 5 100 High Education Educational Genders in Ages in Directors % % Distribution of Background Directors Supervisors
Directors in Directors
audit committee Supervisors and and Senior attendance of audit Supervisors Supervisors and board meetings attendance of directors Senior Executives Executivesmeetings committee members and Senior Senior Executives
Executives.1
%
57
28.6%42.9%
3100%1100%
20-3050-60
remuneration and appraisal attendance of remuneration and nomination committee attendance of nomination
committee meetings appraisal committee members meeting committee members
Industry Investment
Doctor Master Bachelor Male Female 30-40 Above 60
Legal Finance and
accounting
Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 16
35.7%
64
%
14.3
%14.3%
21.4%
14.3%
36
%.7%
35MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Risk Management
Board of
Directors
Montage Technology attaches great importance to risk management and internal control and
has formulated policies like the IInternal Control Management Manual to address various
identified potential risks related to operations covering the internal control operation finance
legal and marketing fields. The Company strengthens its internal control system clarifies Audit Committee
internal control processes operations supervision and evaluation improves internal control
self-assessment management norms and work mechanisms to reduce various risks and
ensure compliant operation of the enterprise. The Company adopts a three-level risk
management architecture to clarify the scope of responsibilities at each level striving to Department of Internal Audit
balance flexibility moderation and efficiency while guarding against risks.Structure of Montage Technology Internal Audit and Risk Management System
Supplier Risk Quality Risk Consumer Concentration R&D Risk Risk
Main Risks
Development of Pre-audit
Implementation Technology Talent Loss Risk IP Risk ……
annual plan for investigation Leaks Risk
of the audit
internal audit of the auditee
Structure of Montage Technology Internal Audit and Risk Management System
Level 1: As the highest responsible party for internal control and risk management the board of directors
provides overall management of the risk management and internal control system plays an upper-level role and
oversees the implementation of the results of the comprehensive risk management system and internal control
Submission to
Follow-up Compilation of system.Compilation of the Company's
audit on the internal audit Level 2: The Audit Committee is responsible for supervising the internal risk management and supervision
audit files based audit committee
implementation report based on mechanisms and is responsible to the Board of Directors.on relevant or the board of
of rectification audit opinions or Level 3: The Department of Internal Audit performs the responsibilities of internal control and risk control actually
materials directors for
measures decisions implements various internal control systems within the Company monitors the progress of internal control and
review
risk control and assists the Board of Directors and the Audit Committee to fulfill their responsibilities including
Reviewing and evaluating the reliability effectiveness and integrity of the Company’s internal monitoring
mechanisms
Reviewing and assessing the appropriateness of the Company’s organizational structures systems and
Internal Audit Procedure procedures
Reviewing and evaluating the security and integrity of assets
Understanding and evaluating the possibility of significant risks to the Company and helping the Company to
improve risk management etc.Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 17
e
li
n
ng
rtio
Re
pMONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
During the reporting period Montage Technology conducted one internal control self-assessment and
three special audits. After the internal control self-assessment and inspection and supervision there
were no major internal control deficiencies within the Company. For the general internal control defects
found the Company adopted a "discover and rectify immediately" strategy and instructed relevant
departments to formulate rectification plans to rectify the issues in a timely manner. As of the end of the
reporting period all identified issues have been corrected with a completion rate of 100%.The board of directors issued the 2022 Internal Control Assessment Report and Ernst & Young Hua Ming
issued the Internal Control Audit Report for the Company.
2022 Internal Control Assessment Report
Based on the identification of significant deficiency of internal control over financial reporting there were
no significant deficiencies in the internal control over financial reporting as at the base date of the Internal
Control Assessment Report. The board believes that the Company has maintained effective internal control
over financial reporting in all major aspects in accordance with the requirements of the internal control
standard system and related regulations.Based on the identification of significant deficiencies in the internal control over non-financial reporting
there were no significant deficiencies in the internal control over non-financial reporting as at the base date
of the Internal Control Assessment Report.From the base date to the issue date of the Internal Control Assessment Report there were no significant
changes that may impact the assessment of the effectiveness of the internal control.Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 18MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Business Ethics
Business Ethics Management The Company promises to strictly protect the whistleblowers' information prohibit illegal discrimination or
retaliation against the whistleblowers and take serious action against those who violate the rules by
Montage Technology strictly abides by laws and regulations leaking the whistleblowers' information or retaliating against them. The Company has established strict
such as the Law ooff ththee P Peeoopplele's's RReeppuubblliic ooff C Chhininaa a aggaaininsstt regulations for the confidentiality requirements of accepting recording transferring verifying discovering
Unfaiirr CCompetiittiioonn IInteriim PPrrovisionss oon PProrohhibibiittiion oof f prosecuting and filing whistleblower information. At the same time the Company will record reporting
Commerciiall Bribery and other accepted business ethics. The information to facilitate timely tracking of related information processing progress and improve the
Company has set business ethics regulations such as Anttii-- Company's anti-fraud management level.corrupttiioonn Management PPooliliccyy to clarify the system of
responsibilities demonstrating the Board of Directors is
responsible for supervising the management in establishing an
anti-fraud culture environment. The Audit Committee as the
body responsible for the relevant issues is responsible for Business Ethics Training
guiding the General Manager's Office to establish a sound
In order to better promote the concept of business ethics Montage Technology actively carries out all kinds
internal anti-fraud mechanism identify sensitive positions and
of anti-corruption training and education in the form of system publicity and specialized training. This will
carry out audit checks accordingly.help further strengthen employees’ awareness of integrity enhance their sensitivity to fraud problems and
help them find and identify daily fraud incidents.In terms of internal management initiatives Montage Technology requires relevant employees from
departments with high potential fraud risks to sign an Anti-Fraud Pledge. The Company strictly investigates
internal corruption bribery fraud money laundering improper trading and other business ethics incidents.In terms of industry cooperation the Company also attaches great importance to business ethics protection
in the supply chain. In addition to the relevant supplier background investigations the Company has
Employee Business Ethics Training
incorporated anti-bribery clauses such as the Anttii-Briibery Statement into standard contract templates and
required anti-bribery clauses to be signed in relevant business cooperation. During the reporting period no
business ethics incidents occurred in the Company.In 2022 the Company's legal department organized
six training sessions for employees on potential
insider trading fraud and other business ethics
Business Ethics Reporting Mechanism issues providing detailed information on the
Company's relevant policies and helping employees
In response to any potential business ethics incidents Montage Technology has established a convenient identify red-line events in their daily work through
and efficient complaint and reporting channel in accordance with the relevant provisions of the Anti-Fraud examples. At the same time corresponding online
Management Policy. Employees at all levels of the Company or external social parties can report business tests were conducted after the training to further
ethic issues to the General Manager's Office in real name or anonymously through reporting hotlines consolidate the training effect.emails letters and other means. The relevant reported information will be reported to the Company's
general manager within 10 working days and the investigation results or handling results will be notified
to the reporter within three months (only for real-name reporting). If it is hard to notify the reporter before
the deadline the reason will also be explained to the reporter.Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 19MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Information Disclosure
Information Disclosure Procedure
The Company attaches great importance to the management of information disclosure and specifies that
the chairman of the board is the principal responsible person for information disclosure. The Company has
formulated policies for instance InInffoorrmation Diisclosurree Policy BBuussiiness MMaanagementt Policy oonn The internal responsible people review and submit the
Postponemeenntt off and Exemption ffrrom IInnfforrmatiion Diisscllosure and InInssidideerr RReeggisisttrraattiion aanndd MMaannaaggeemeenntt information
Policy to standardise and refine the requirements related to information disclosure.Montage Technology adheres to the principles of "truthful accurate complete timely fair concise and
clear easy to understand" for information disclosure. The Company has designated the disclosure channel
of website and press including the Shanghai Stock Exchange (www.sse.com.cn) Shanghai Securities News The secretary of the board conducts compliance checks
and Securities Times to ensure stakeholders have fair access to information about the Company. At the and writes announcements
same time we carry out effective communication with shareholders and institutional investors through
performance briefing the Shanghai Stock Exchange interactive platform the investor relations column on
the Company's official website investor email box investor hotline investor on-site visit and other forms.We value maintaining investor relations improve the transparency of the Company's information and
protect the legitimate rights and interests of all shareholders especially the small- and medium-sized Relevant review procedures
shareholders.Insider Registration and Management Policy
In accordance with the relevant requirements of the Insider Registration and Management Policy the
Company took measures to keep the number of insiders to a minimum and registered the insiders that have
access to the unreleased insider information during the reporting transmission preparation review
Disclosure
disclosure and other processes.During the reporting period
The Company has
disclosed a total ofdisclosed held hosted a total of responded to a total of
67431227921274
investor relations activity
interim announcements regular reports result presentations investment institutions times SSE interactive questions
record forms
Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 20MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Information Security
Enhance permission management
Montage Technology strictly abides by relevant laws and regulations such as the Cybersecuriity
Law of the People's Republic of China and has formulated a series of system documents such as
Network Diiviisiion Maannagementt TTeerrmiinall EEqquuiippmentt NNeettwoorrkk AAcccceessss C Coonntrtrooll Hiigh SSeeccuurriittyy DDaattaa The permission application process is clarified following the "minimum permission" principle
Access Polliicy Document Access Control Policy and Emergency Plans for Power Outages and Fire and strictly limiting permission
Alarms in Various Data Centers. The IT department is responsible for the Company's information
security management.The Company has taken a series of measures in the identification and prevention of information
security risks to ensure that resources technology management and other factors related to
information security are under control. It would help to protect IT assets from unauthorized access
or attacks and minimize IT-related risks.Deploy network security devices
Various network security devices are used to prevent leakage of important design data
and network intrusion
The heterogeneous firewall architecture is used to minimize external ports. The Company
deploys encryption firewall authentication and dual-factor VPN authentication is
necessary for protocols that do need to be developed
Implement internal network isolation
The software is set up to automatically update server and regularly apply security patches
to the server
According to the definition of security levels of information system assets data access rules
and VLAN network segments with different security levels are designed and planned and
Various functions of the firewall including malicious code filtering virus protection attack
mutual access is prohibited by default between different network segments
prevention and regular automatic update are enabled
Firewall is used to restrict users' access to high-security level network resources
Relevant protection function modules are enabled for the mail server to filter malicious
code emails and phishing emails
Only certain terminals are allowed to access the systems that store sensitive information and
data transfer is strictly restricted
Anti-virus functions are enabled for the server and non-essential high-risk ports are
disabled to prevent the spread of computer worms
Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 21MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
In addition the Company's IT department conducts monthly internal audits of the information system
covering relevant account permissions data center access logs system operation logs firewall logs and
Early warning and emergency plan other information. The security issues found are rectified in a timely manner and test conclusions are
recorded. The Company also conducts regular external audits and cooperates with third-party auditors.The IT system operation monitoring system has been established to alert via emails and
Furthermore the Company promotes cybersecurity awareness to all employees by regularly sending
prompts when related equipment malfunctions occur
phishing email examples as warnings while combining with regular training to convey the precautions for
using the office network secure management of passwords and important data files virus prevention and
The Datta Bacckup PPolliiccyy has been established and data backups are conducted regularly to other security measures and awareness.prevent data loss
We establish and follow emergency plans including Nettworrk IIntterrrrupttiion Emerrgency Pllan
IIT SServer RRoom EEmeerrgency Pllan aand Power Power Supply Emerg
During the reporting period
Power Power Supply Emergeency PPllaan clearly
indicating the emergency response process in order to quickly restore system operation
and avoid data leakage and loss Information security Information security
External audits Supplier audits training coverage rate training time
2 5 100% 100 hours
Highly sensitive data protection
For highly core data departments such as the R&D department we formulate special
policies to protect core data and use secure access terminals and virtual terminals to
indirectly access sensitive data. Meanwhile we set strict access control for special
documents and strengthen file transfer control
Indirect connected secure access terminals and virtual terminals are used to indirectly
access sensitive data
Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 22MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
ESG Governance
Undertaking social responsibility and adhering to sustainable development are important components of The Board of Directors is responsible for formulating Corporate Social Responsibility-related strategies
Montage Technology's development strategy. The Company integrates ESG management and sustainable and objectives approving and monitoring ESG-related matters as well as strengthening the Board's
development concepts and incorporates them into the business management system. supervision of ESG governance matters and promoting the implementation of ESG management policies
and strategies. The Corporate Social Responsibility Working Group comprised of senior managers and
managers from all relevant functional departments is responsible for guiding the implementation of ESG
ESG Governances Structure strategies and managing ESG-related issues providing sustainable development advice to the Board of
Directors and formulating ESG objectives and action paths while considering the concerns of various
stakeholders and the international community. The Board of Directors Office the lead department will
In order to continuously consolidate the leadership role of the Board of Directors in ESG governance matters
work with the Company's business lines and other functional departments to promote the
and clarify its accountability in related matters the Company has developed ESG work management
implementation of ESG work and will continue to establish and optimize relevant risk management
mechanism and established a three-tier ESG governance structure to lay the foundation of the organizational
mechanisms to ensure close communication and cooperation with stakeholders.structure for the implementation of the Company's sustainable development actions to meet the
communication needs of shareholders investors customers and other stakeholders.Board of
Directors
Approval and Monitoring Proposal
ESG Working Group
Guidance and Monitoring Report
Board of Directors Office
Montage Technology ESG Governance Structure
Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 23MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Stakeholder Engagement
Montage Technology attaches great importance to the communication with stakeholders and maintains close contact and interaction with them. We actively listen to the opinions and suggestions from stakeholders and take
measures to respond reasonably to their concerns. During the reporting period the Company did not receive any objections from stakeholders to Montage Technology's business activities.Stakeholders Expectation and Demands Response Channels Stakeholders Expectation and Demands Response Channels
Shareholders' Human Capital Comprehensive Career
Ensure Stable Product Quality Advancement Mechanism Employee
Product Quality Meeting Development
Focus on Technology Competitive Salary and Welfare Conference
Innovation and IP Earnings Employee Benefits and Welfare
Shareholder & Development Guarantee Employee
Business Ethics and Release Employee Occupational Health
Investor Improve Profitability Implementation of Health and Activities
Compliance Information and Safety
Optimize Internal Control and Safety Management System Employee
Economic Performance Disclosure Business Ethics and
Risk Management Equal Communication and Training
Roadshow Compliance Appeal Mechanism
Information
Pay Taxes in Full and on Time Promote Daily Communication
Disclosure Implement Project Collaboration Industry Seminars
Economic Performance Anti-corruption Management Customer Service
Reception of Eliminate Supply Chain and Supplier
Product Quality Proactive Implementation of Business Ethics and
Government & Research Partner & Business Ethics Issues Conferences
Innovation and IP Relevant Policies Compliance
Regulators Document Supplier Fulfill Contracts in Accordance Supplier Training
Business Ethics and Proactive Social Responsibility Innovation and IP
Exchange with the Law Supplier
Compliance Contribute to Technological Supply Chain Management
Policy Conduct Supplier Assessments Assessments
Development of the Industry
Implementation Focus on Technology Development
Industry Cooperation
Industry Cooperation Ensure Stable Product Quality Commit to Charity
Customer Visits Community Engagement Community
Product Quality Improve the Confidentiality of Adhere to Green Operation
Customer Service Environmental Advocacy and ActivitiesCustomer Stakeholder Communication Customer Data Community & Promote Social Progress
Feedback Cooperation Public Welfare
and Collaboration Optimize Product Design Public Share the Outcome of
Online Industry Cooperation Projects
Green Product Carry out Full Lifecycle Development
Management Communication
Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 24MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Materiality Assessment Montage Technology Materiality Matrix
High
Montage Technology is committed to actively listening to the opinions
01
and suggestions of all stakeholders and integrating the core demands of 9 issues of high 02
stakeholders into the entire process of company decision-making and importance
operation in order to accurately grasp the direction of the Company's 04 03
10
sustainable development. During the reporting period in order to better
identify ESG materiality issues the Company comprehensively sorted out 10 05 issues of
important issues related to the Company's sustainable development 08 07 06
19
with reference to the GRI Standards industry ESG issues concerning the medium importance 09
14
MSCI ESG Ratings and feedback from internal and external stakeholder 12 11 13
research. We identified a total of 25 issues relevant to Montage 6 16 15 issues of low
Technology including 9 issues of high importance 10 issues of medium 18
importance and 6 issues of low importance. importance
212017
22
Montage Technology Materiality Assessment Process
23
Through the analysis of disclosure requirements of the guidelines policy analysis
Identification of
and benchmarking capital market concerns 25 potential materiality issues were
Topic Issues 24
screened out to form a list of ESG materiality issues 25
Develop stakeholder communication plan conduct 18 in-depth interviews with Low Importance to Montage Technology's Sustainable Development High
Stakeholder
internal functions and distribute ESG materiality questionnaires to stakeholders to
Communication
understand the priority issues of each stakeholder 01 Business Ethics and Compliance 14 ESG Governance
02 Product Quality 15 Network Security and Data Privacy
03 Human Capital Development 16 Occupational Health and Safety
04 Innovation and IP 17 Employee Rights and Benefits
Confirming Analyze each issue in two dimensions: importance to stakeholders and
05 Economic Performance 18 Diversity and Inclusion
Material importance to Montage Technology's sustainable development and confirm the
06 Information Disclosure and Transparency 19 Conflict Minerals
Topics level of impact of each issue with the Board of Directors
07 Stakeholder Communication and Collaboration 20 Waste and Hazardous Substance Management
08 Customer Service 21 Environmental Advocacy and Cooperation
09 Industry Cooperation 22 Water Resources and Effluents Management
10 Supply Chain Management 23 Energy Management
Materiality Compile into a matrix of materiality representing high- medium- and low- 11 Risk Management 24 Climate Change and GHG Management
Matrix importance 12 Labor Management 25 Community Engagement
13 Green Products
Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 25
Importance to Stakeholders02
Innovation
Empowerment
and Quality Service
Montage Technology upholds the craftsmanship spirit of excellence
and is dedicated to providing customers with high-performance and
low-power IC solutions with innovation as the driving force to better
suit the customers' demands and support the Company's
extraordinary growth.Product Quality
Innovation and IP
Customer Service
Green Products
26MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Innovation Orientation Montage Technology's R&D Investment (Unit: 100 million CNY)
In 2022 the Company continued to increase
As a technology-intensive IC design enterprise Montage Technology continues to practise the corporate 5.63
investment in R&D and invested a total of
culture of "accelerating with focus and innovation". In the project establishing and planning phases of each
product requirements are put forward for Intellectual property (IP) the number of patents submitted and
CNY 563 million in R&D
other product development related achievements. At the end of the project the implementation of each
phase of evaluation is incorporated into the project management quality score to identify matters to be 3.70
increasing by 52.36% year on year
improved and continuously promote product innovation and to realize the product innovation system of
3.00
"Technological Reserves - R&D - Mass Production".and accounting for 15.34% of the revenue.Project Establishment Marked 2020 2021 2022
Official Mass Production 7 1 by the Signing of the NPA In 2022 the Company put into use the headquarters building in Shanghai to provide resources for the
future R&D scale growth. Meanwhile the Company recruits and trains R&D engineers annually based on
R&D needs and carries out cooperation between enterprises and universities according to the evaluation of
product characteristics and R&D strength so as to provide talent guarantee for R&D and promote product
System Architecture development and industry development.Quality Certification 6 2 Modules Integration and
Montage Technology Layout Design
By the end of 2022 the number of Company's R&D technical staff was 468 accounting for 73% of the
R&D Process
total employees an increase of 2% from 2021. Among them R&D technicians with master's degree or
above accounted for 63% representing the continuous expansion of the Company's R&D technical team.Reliability Assessment 5 3 Prototype Tapeout and The Proportion of R&D Personnel R&D Team by Age in 2022 (Unit: person)
and Risk-based Pilot Packaging
3
Production 20
417397
135
154
Sample Testing and Verification 140
Return to the design phase (the second phase)
if there are design defects 468
373
317
Montage Technology R&D Process
213
During the reporting period Dr. Howard Yang Chairman of the Board and CEO of Montage Technology was 2020 2021 2022
promoted as IEEE Life Fellow by the Institute of Electrical and Electronics Engineers (IEEE) in recognition of his
Number of R&D Number of personnel
prominent contributions to the field of IC design over the years. 29 and below 30-39 40-49 50-59 60 and above
personnel in other positions
Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 27MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
In 2022 Montage Technology took the lead in cutting-edge technology of interconnect
IC area with intensive release of new products:
CXLTM Memory eXpander Controller (MXC) Gen2 DDR5 RCD Chip
Remote and Automated Testing to Improve Testing Efficiency
In 2022 to alleviate the impact of working at home due to the pandemic and improve
testing efficiency the Company introduced remote testing by using the existing server as a
relay server to enable remote operation of test equipment and machines in both Shanghai
and Kunshan laboratories.In May 2022 the Company released the world's In May 2022 the Company pioneered the trial
first Compute Express LinkTM (CXLTM) Memory production of Gen2 DDR5 RCD chip which supports Meanwhile the Company realized automation of testing and data analysis through
eXpander Controller (MXC) which can enable data rates up to 5600 MT/s a 16.67% improvement programming language to control instruments and boards and analyze testing data. The
significant expansion of memory capacity and over Gen1 RCD and supports multiple power-saving Company developed automated testing to solve the problems of manual testing such as
bandwidth to meet the growing demand for data- modes to continuously provide efficient memory time-consumption labor-cost and fallibility while realizing functions including power
intensive applications such as high-performance solutions for the development of data-intensive switches control chip operation monitoring log files recording and test results judgment
computing and artificial intelligence. computing applications. which significantly improved testing efficiency.Network segment 1 Network segment 2
Gen1 DDR5 Clock Driver (CKD) Gen3 DDR5 Registering Clock Driver (RCD)
PC Testing server PC Testing server
Engineering Samples Engineering Samples
Accessing MB
system testing
PC via VNC
Office Office laboratory
network network network Offline
segment segment segment
Accessing MXC
system testing Laboratory in Kunshan
PC and testing
servers via
remote desktop
Office
computer PC Testing server PC Testing server
Accessing MB
system testing
PC via VNC
In September 2022 the Company delivered the In December 2022 the Company released the Office Office laboratory
network network network Offline
segment segment segment
industry's first engineering sample of Gen1 DDR5 industry's first engineering sample of Gen3 RCD
Laboratory in Shanghai
CKD which supports data rates up to 6400 MT/s which supports data rates up to 6400 MT/s a 14.3%
and low-power management modes designed to improvement over Gen2 and 33.33% improvement
help customers develop new-generation memory over Gen1 thus realizing constant update for memory Multi-user remote desktop Relay server#1
Relay server#2
products for PC. interface products.Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 28MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Quality Management
The Quality Management Department of Montage Technology is responsible for the formulation of To enhance the staff's awareness of quality assurance and related work ability Montage Technology
quality-related policies and objectives regular review of the effectiveness of the quality management conducts employee trainings regarding various topics including quality management system quality
system and annual management review to further improve the overall product quality management of management responsibilities quality acceptance procedure and other related contents.the Company on the basis of meeting relevant statutory and regulatory requirements and customer
expectations. Montage Technology has formulated the QQuuaalliitty MMaannuuaall NNeew PProrodduucctt DDeevveeloloppmeentt Meanwhile Montage Technology carries out the quality management of its business partners. The
Procedure and other documents which clearly stipulate the quality management methods covering the Company achieves standardized management of subcontractor product quality by establishing policies and
design development outsourcing mass production and sales and other phases of ICs to standardize the systems regarding the selection of subcontractors quality requirements for subcontractors such as wafers
whole process of quality management. and assemblies and plastic packaging qualification procedures etc. In addition the Company establishes
and updates the list of banned substances from time to time for raw materials to meet the
To ensure product quality the Company has established RReelliiabiilliitty QQuuaalilfificicaattiioonn international/domestic environmental requirements and requires suppliers to provide relevant
Requiirementt which defines the quality assessment at the product certification phase environmental testing reports regularly to ensure that products comply with environmental regulations and
regarding production processes/product packaging etc. such as reliability to reduce the environmental impact of products.assessment based on the JEDEC standard. Meanwhile during the product testing and
mass production phases the Company constantly improves product quality by The Company has maintained a high level of quality management since founded and is highly recognized
regularly collecting indicators in key processes establishing product testing by customers.procedures conducting failure analysis etc.In 2022 the Company did not have any quality incidents. GB/T 19001-2016 / ISO 9001:2015
Standard Quality Management System Certification
The Company received the
Outstanding Quality in Assembly & Test Materials
Examples of Specific Measures for Quality Assurance during Product Testing and Mass Production and Semiconductor Components
Award from Micron Technology
Solve the problems of high-speed signal transmission and impedance matching between the test system and the chip
under test through self-designed high-speed test board and test program.Eliminate random errors of test instruments by multiple sampling in mass production testing to ensure high quality of
products while optimizing test time and saving test costs with the customized high-speed self-test function inside the chip.Correct chip parameters in mass production by designing the calibration circuit inside the chip to improve the product yield
and reduce the material loss.Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 29MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Clean Technology
Montage Technology values the product energy efficiency performance in all stages of product development and "low-power" is also one of the core features and advantages of the Company's product development
strategy. For example in the product definition stage the balance between performance and power consumption is emphasized; in the product design stage sleep and standby modes are added to comprehensively
improve product energy efficiency performance.Optimal Management of Product Energy Consumption
The Company launched the new 4th Gen Jintide server
Product Design Phase
processor (CPU) to provide strong computing power for cloud
computing enterprise applications artificial intelligence and
System-level energy management Innovative circuit-level power management high-performance computers. The product adopts multi-
Realize multiple system-level power Achieve fine-grained management of power dimensional energy-saving technologies to continuously
management through CPU multi-frequency consumption through circuit design techniques improve product energy efficiency.switching dynamic low-power (CKE such as clock gate control power gate control
shutdown mode) power management dynamic power supply replenishment and Taking the floating-point performance
clock suspend mode extremely low-power multi-threshold voltages. Improved LINPACK as an example the 4th Gen Jintide
mode etc.The New Performance CPU consumes nearly 9% less power than the
per Watt ratio 3rd Gen Jintide CPU for the same amount of
4th-Gen Jintide
computing task.CPU Delivers
Reasonable Selection of Product Technology Process
Multi-dimensional
Energy Savings
With the advanced circuit process Gen2 DDR5 memory interface products consume 5%-10% less
power than Gen1 products at the same rate.Upgrade the "Active Idle" mode to reduce
Optimized
power consumption by lowering the Mesh
power
frequency within interconnecting cores.management
Energy Management for Customers
design
Add Package C6 low power mode to reduce
CPU power consumption during idle time.Defining low power consumption and introducing low power consumption design indirectly reduce
downstream customers' requirements for heat dissipation and power supply capability raw
material requirements etc. which in turn contributes to the lower energy consumption smaller
investment in ambient temperature control systems and lower material consumption of the
Company's major products when applied to servers.Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 30MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Intellectual Property
Montage Technology has always attached great importance to the protection of intellectual property rights
to support the R&D strategy of independent innovation and promote the long-term development of the
Company. To strengthen the management of intellectual property rights and enhance the core
competitiveness the Company has established an Intellectual Property Committee consisting of the heads
of R&D departments and an Intellectual Property Management Department with specialists in which the
specialists are responsible for handling relevant matters and reporting to the Intellectual Property
Committee. Meanwhile the Company has established comprehensive intellectual property management
policies including PPaatetennt tM aMnangaegmeemnte Mnte aMsueraesu rTeesch nToelcohgnyo Clongfyi deCnotniafild Meanntiagl emMaenta Mgemaseunret sM Inetaesgurraetsed
CInirtceugitr aLateydo uCti rDceusiitg Lna Myoaunta gDemsiegnt Maeansaugrems ePnate Mnte Aapsuprliecsat iPoant ePnrot cAepssp lIincatetliloenc tPuraol cPersosp eInrttye Tllreacitnuinagl PMreoapseurrteys
etc. to ensure the timely and effective protection and management of the Company's intellectual property
achievements.
1. National Intellectual Property Advantage Enterprise
In addition the Company purchases professional intellectual property management software and patent
search platform services which facilitate the intellectual property management department to conduct the 2. The patent "Voltage and Timing Calibration Method for
necessary patent searches to understand the current status of intellectual property and development needs Memory System" won the 23rd China Patent Excellence
of the proposed technology when the project is established and search existing technologies before Award
applying for patents to avoid repeated applications thereby realizing the information management of
intellectual property rights. For R&D personnel the Company provides subscription to IEEE journals and 3. The patent "Device and Method for Clock Signal Loss
China National Knowledge Infrastructure membership services. Detection" won the 4th SMPG Shanghai IP Innovation
Award (Second Prize for Patent)
To promote the output of intellectual property achievements the Company has formulated the Measures
for tthe FFoormrmuulalattiioonn aanndd A sAssessesmsmeennt to fo Af nAnnunaul aPla Pteantet nAtp pAlpicpalitciaotnio P l a n which clearly sets the patent
Intellectual Property Rights of Montage Technology
application KPIs for the R&D department to be assessed every six months and the KPIs are refined to
individual employees and taken into consideration in the performance assessment of relevant employees. Patents for invention Layout design rights Software copyrights
To encourage employees' self-innovation the Company has formulated the Intellectual Prroperrtty IInncceennttiivvee (pieces) (pieces) (pieces)
Program which clearly rewards the inventors of patent applications and the proposers of innovative Application during the 1
technical solutions. Meanwhile the Company selects outstanding patent solutions to actively participate in Reporting Period 47 11 1
patent competitions to encourage inventors to keep pace with continuous innovation.Authorization during the
Reporting Period 18 11 2
During the reporting period
Cumulative Applications 1162 67 9
the Company was awarded the "National Intellectual Property Advantage Cumulative Acquisitions 144 67 9
Enterprise" the patent "Voltage and Timing Calibration Method for Memory System"
(ZL201110443575.7) won the 23rd China Patent Excellence Award and the Note:
1. Including 2 international applications under the Patent Cooperation Treaty (PCT)
patent "Device and Method for Clock Signal Loss Detection" (ZL201410307669.5) won the
2. Including 4 international applications under the Patent Cooperation Treaty (PCT)
4th SMPG Shanghai IP Innovation Award (Second Prize for Patent).
Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 31MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
To avoid intellectual property rights disputes Montage Technology has signed the Emplloyyeeee
Confidentialliity Non-competition and IInnvveenttiion RRigighhtt A Attrtirbibuutitoionn A Aggrereemmeenntt with employees and clearly User Experience
established the IPR Infringement Reporting Award in the Intellectual Property Incentive Program. Employees
can report relevant clues or evidence to the Intellectual Property Management department by phone letter Montage Technology strives to deeply understand and closely cooperate with customers' needs. Thus the
or email to help the Company discover third-party intellectual property rights infringement timely. Company's quality management team regularly conducts customer satisfaction surveys covering the five
dimensions: quality technology service price and delivery every six months and conducts tracking and
In addition Montage Technology has formulated the Intellectual Property Training Measures and combined analysis of client failure rate and customer satisfaction. Among them for the quality-related feedback from
internal and external training to conduct employee orientation training and special IP training. For new customers the Company standardizes the handling according to internal policies on customer feedback
employees the Company sets a test session in the training and provides flexible advanced training and complaint handling failure analysis correction and improvement etc. to improve quality in a timely
according to the task characteristics of each department and the actual needs of IP management to manner and ensure that customer demands are effectively responded to.enhance employees' awareness of IP protection and related skills.In addition the Company conducts responsible marketing management. In terms of brand management
the Company follows the corporate Visual Identity (VI) media communication system manual and designs
various combinations of corporate brands to ensure that information can be clearly and accurately
conveyed and the corporate visual image can be kept unified in different situations. In terms of trademark
management the Company ensures the correct use of relevant trademark information with clients in
product promotion activities through requirements such as signing the Commiittmentt to Use the Company
Logo.Montage Technology achieved Customer complaint
a customer satisfaction rate over closure rate was
90100%%
IP Training for New Employees in 2022
During the reporting period
the Company organized
6 held1 online training related to total of 132 people participated
patent search for the project department in IP protection-related trainings
employee IP trainings
Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 3203
Supply Chain Management
and Industry Cooperation
Establishing a responsible industrial chain is a crucial strategy for
Montage Technology to achieve sustainable development. This
shared goal and responsibility extends to our industrial chain
partners. We actively fulfill our commitment to supply chain
sustainability by enhancing supply chain management clarifying
supply chain management requirements implementing responsible
mineral sourcing and deepening our cooperation with suppliers
industry organizations and other stakeholders.Supply Chain Management
Industry Cooperation
Conflict Minerals
33MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Supply Chain Management
Montage Technology is committed to continuous optimization of the supplier management system and
management process which includes the implementation of comprehensive internal policies such as the
Supplliierr Managementt Polliicy. We maintain stringent control over the entire supplier life-cycle from
admission to elimination/exit. Regular supplier audits are conducted to ensure the sustainability and
performance of our supply chain. Our aim is to foster a supply chain environment characterized by fair Basic Survey Agreement Signed Audit Review
competition integrity transparency and robust traceability. Business License Contracts On-site investigation
Certifications of ISO 9000 Anti-Bribery Statement Interview survey
or ISO14000 Regular Meeting
Performance Qualification Certificate
Evaluation Safe Production License
Qualification Selection & Supplier Maintain/ Supplier Selection and Admission Process
Letter of Intent CollaborationReview Admission Management Elimination/Exit
In terms of supplier supervision and evaluation Montage Technology conducts comprehensive
performance evaluations on suppliers on a quarterly basis. These evaluations cover various aspects such as
quality technology delivery timeliness and service. The performance records are stored in our data
analysis system which integrates the original manufacturing data from suppliers. Through consistent
Classification monitoring and analysis of supplier performance we constantly refine our supplier management system.For suppliers with excellent performance the Company implements incentive measures such as
strengthening cooperation with them.For underperforming suppliers the Company provides improvement guidance.For suppliers with poor performance the Company reduces cooperation or even cancels their supplier
Supplier Management Process qualifications.During the supplier selection and admission stage the Company collects information on a range of ESG Regarding supplier empowerment Montage Technology maintains During the reporting period
indicators such as business operations quality control production technology environmental open lines of communication with suppliers through face-to-face
management business ethics and employee health and safety for potential suppliers. This process also interviews real-time email communication daily/weekly reports
the Company
carried out performance
includes on-site inspections. In addition the Company requires suppliers to sign relevant declarations on online meetings and quarterly supplier conferences and other
business ethics and product quality which serves to practise responsible sourcing and enhance our means for business improvement quality control etc. These
sustainable supply chain management. interactions facilitate timely identification and resolution of any evaluations on 7 core suppliers
issues and ensure stable supply chain operations.Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 34MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Responsible Minerals Sourcing
Montage Technology is committed to promoting responsible mineral procurement. In line with this
commitment we have established a risk-based responsible mineral management system and a well- During the reporting period the Company has completed the conflict minerals investigation for 100% of
structured governance mechanism that align with the Due DDiilliigence Guiidance fforr RReesspponsiible SSupply
suppliers in all production process and no supplier was found to be involved in conflict minerals.Chains of Miinerralls issued by the Organization for Economic Cooperation and Development (OECD). Our
Quality Control Department is entrusted with the tasks of gathering organizing and evaluating conflict
minerals standards and creating the Conflict Miinneerralls MMaannaaggeemeentt PPoolilcicyy. This policy details explicit
requirements for the identification and management of conflict minerals. Furthermore we provide our
Conflict Miineralls SSoouurrcciing PPoolilcicyy to our clients pledging to collaborate with our supply chain to foster a Concept Promotion Survey Plan
responsible mining environment.The Company requires suppliers Based on the latest version of the
As a fabless company that doesn't directly source minerals we try our best to ensure that our suppliers to meet the requirements of CMRT Questtiionnaiire released the
adhere to conflict-free minerals sourcing as part of our commitment to responsible sourcing. We have Montage Technology's Conflict Company screens suppliers that
implemented various measures to ensure that our products do not contain minerals from conflict areas Minerals Managgeemeennt tP Poolilcicyy may offer 3TG and cobalt
products
including:
Suppliers involved in manufacturing are mandated to strictly follow our Conflict Miinerralls Maannaageementt
Policy. The Company performs reasonable due diligence in our supply chain to ensure that sourced
minerals are from smelters that comply with the Responsible Minerals
Assurance Prrogrram ((RRMAAPP)) c Ceertritfiifcicaatitoionn .The Company annually identifies and reviews relevant suppliers of
conflict minerals specifically tin tantalum tungsten gold (3TG) and
cobalt by using the MCoinnefrlaiclst RMeipnoertainlsg RTepmoprltaitneg ( CTMemRTp) lRaetes p(oCnMsRibTle) Survey Results Survey Implementation
QMuineesrtaiolsn Qnuaeisret .The Company requires our suppliers to conduct mineral traceability Eliminate unqualified suppliers Ask suppliers to fill out
investigations at each level to identify the source smelters. These and smelters in the supply chain CMRT Questionnaire to collect
smelters are prohibited from using minerals from conflict-affected and output the CMRT Questtiionnaiirre and summarize supplier
feedback
and high-risk areas (CAHRA). If necessary the Company requires
smelters that have not yet passed RMAP certification to pass it in a
timely manner.Conflict Minerals Management Process
Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 35MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Industrial Synergy
Open Data Center Summit
As a leading company in the design of data-processing and interconnect chips Montage Technology plays a
pivotal role in advancing reforming and developing the entire industry. Since its inception Montage
Technology has established effective cooperation sharing and growth mechanisms with partners in the Intel China Data Center Partner Technology Summit
industry chain thereby contributing to a vibrant efficient and internationally competitive semiconductor
industry ecosystem. China Electronic Information Expo
Montage Technology
2022 Key Industry World Internet Conference
Open Ecosystem Events (Partial)
World Semiconductor Conference and Nanjing
Leveraging cutting-edge technology Montage Technology collaborates with various parties to develop International Semiconductor Expo
solutions for industry intelligently upgrading. At the same time we share innovative ideas with our partners
through active participation in exchange seminars joint innovation and other ways thereby promoting Intel IRUM Fall 2022 & Intel Innovation 2022
industrial technology innovation and application.Flash Memory Summit
JEDEC Solid State Technology Association Board Member
Dr. Yang Attended the World Internet Conference and Delivered a Speech
PCI-SIG Alliance Members
On November 9 2022 the Wuzhen Summit of the World
Internet Conference 2022 (WIC 2022) themed "Building a
CXL Alliance Members Networked World and Creating a Digital Future" took place
in Wuzhen Zhejiang Province. Dr. Howard Yang Chairman
and CEO of Montage Technology was invited to deliver a
speech. He emphasized that the thriving digital economy
Shanghai Integrated Circuit Association Vice President Unit had become a vital engine for national economic and social
development and that consolidating the base of the digital
economy and providing high-performance high-security
Dr. Yang delivered a speech
China Integrated Circuit Design Innovation Alliance Board Member and high-reliability chips for the digital infrastructure was at the conference
exactly the cause for which Montage Technology had been
striving for years.Industry Association Participation
Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 36MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Partner Empowerment
Montage Technology is committed to fostering industry integration and leveraging its resources in the industry chain to stimulate industry development through investments and value-added services. During the reporting
period the Company invested in Credo Technology and DIOO both of which have successfully gone public.Credo Technology DIOO
Founded in 2008 Credo (NASDAQ: CRDO) is a globally DIOO Microcircuits Co. Ltd. Jiangsu (DIOO stock code:
leading semiconductor design company. It specializes 688381) is an integrated circuit and chip design enterprise
in the development of SerDes a physical layer high- specializing in the R&D design and sales of high-
speed communication technology. Credo provides low- performance analog chips. Currently the company boasts
cost low-power state-of-the-art ultra-high-speed over 1200 product models of signal chain analog chips
single-channel 112G/56G/28G commercial solutions and power management analog product. DIOO owns
catering to mobile Internet cloud computing big data many leading products in the industry including
5G and AI applications. USB2.0/3.1 components ultra-low power consumption
and high-precision operational amplifier components LED
lighting semiconductor components and high-efficiency
power management components.Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 3704
Employment Management
and Harmonious Workplace
Employees are the most vital asset of Montage Technology and the primary driving
force for the Company to achieve sustainable development. The Company adheres
to a people-oriented principle upholds fair recruitment practices safeguards the
fundamental rights of each employee and places a strong emphasis on
occupational health and safety. Simultaneously we prioritize talent cultivation and
development and establish a robust training and development system to enhance
our employees' professional competencies skills stimulate their vitality and
creativity. We encourage employees to grow along with us.Human Capital Development
Labor Management
Occupational Health and Safety
Employee Rights and Benefits
Diversity and Inclusion
38MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Talent Attraction
Montage Technology adheres to equal and compliant employment practices enhances a reasonable and
As of the end of the reporting period the Company had a total of 641 employees divided by
diversified compensation mechanism safeguards employees' human rights and other interests cares for
gender age function and education degree as follows.their physical and mental health and boosts their enthusiasm and team cohesion.Diversified Hiring Practices 2 6% 9% 30%
Montage Technology strictly complies with relevant Employee Employee
laws and regulations such as tthe LLaabor LLaw ooff ththee distribution distribution
People's Republic of China a n d tthe Laborr Conttrractt Law by gender by age
of tthe PPeeople's Republic of CChiina along with labor
policies and regulations applicable in our operational
locations. We have also formulated internal 71% 64%
regulations including the Employeeee Handbook aannd
Recruiittmeennt t Policy to comprehensively protect the
Female Male 30 and below 31-50 51 and above
legitimate rights and interests of employees in
recruitment promotion salary and benefits collective
negotiation and other aspects. We uphold the
principles of fairness and justice steadfastly eradicate
discrimination based on nationality age ethnicity 17%
1%2%
3%
race gender or religion and discrimination due to illness psychological and physical disabilities and
provide equal employment opportunities for all. During our operations we strictly prohibit any form of child
Employee Employee
labor and forced labor and strictly prohibit behaviors such as corporal punishment intimidation distribution
harassment abuse and discrimination against employees. During the reporting period Montage distribution
by function by education
Technology maintained a 100% labor contract signing rate and commercial insurance coverage rate. 43% degree 51%
The Company conducts regular recruitment demand forecasting and actively establishes talent pools 73%
through various channels such as social recruitment campus recruitment and academia-industry joint
training.R & D Marketing Management and Doctorate Master's Bachelor's
supporting degree degree degree
Junior college High school degree
degree and below
Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 39
10%MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Compensation and Incentives Talent Development
Montage Technology has established a compensation and incentive system that aligns with the Company's Montage Technology places high value on the growth and development of each employee. To unleash their
strategic development goals and offers differentiated and competitive compensation packages for potential and foster self-improvement the Company provides clear and diverse development paths and
employees at various positions and levels. Beyond the base salary Montage Technology provides equity talent advancement channels. The Company has also set up tailored and varied training courses to
incentives special bonuses and other compensation incentives to attract and retain talent fostering empower employees in all aspects and promote their career planning and development.mutual growth and development of both the employees and the Company.Performance Management
Intellectual Property Incentive The Company has established the Perrfformance Management Policy which mandates each department to
develop an assessment plan based on job characteristics. Employees are assessed on parameters such as
During the reporting period
Recognizing employees' innovative contributions job performance and task completion to ensure the fairness and effectiveness of the evaluation. To
Montage Technology directly links innovation to income maintain the objectivity of the assessment process the Human Resources Department conducts a unified
the Company issued a total of
enabling employees involved in innovation to share the review of the assessment results and makes them public. Based on the performance appraisal results the
benefits of technological advancements fairly and 117 Company provides incentives like salary adjustments promotions and equity distribution to employees. patent awards
reasonably.Moreover the Company has established a performance feedback and improvement mechanism. On one
hand if employees have concerns about their performance results they can provide timely feedback to the
Human Resources Department. On the other hand department
leaders and the Human Resources Department can communicate During the reporting period
Equity Incentive with the evaluated employees in a timely manner offering past
performance summaries future work guidance and the coverage rate of performance
psychological counseling thereby helping employees improve and career development assessment
To ensure employees partake in the Company's developmental accomplishments we have their work abilities and qualities. for employees was
launched two restricted stock incentive plans for employees since 2019.Through performance management the value of each employee 100%
During the reporting period a total of 338 incentive is objectively and fairly assessed their work enthusiasm is
recipients were allocated restricted stocks under the 2019 stimulated and talents are attracted and retained.During the reporting period
restricted stock incentive plan representing 52.73% of the
the comprehensive coverage
total number of employees at the end of the reporting Talent Advancement
rate of the Company's equity
period. By the end of the reporting period a total of 264 incentives was
To reinforce the development of our talent pipeline Montage Technology has clearly defined the
incentive recipients were granted restricted stocks under the 94 promotion path and process for employees strengthened the management of job promotion and internal restricted stock incentive plan accounting for 41.19% of % transfer and established multiple promotion channels. Employees can apply for other positions through
the total number of employees at the end of the period. performance evaluation recruitment competition department head recommendation and other methods
thereby with ample growth space and development opportunities for all employees.Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 40MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Employee Training
Montage Technology is committed to fostering a learning culture and providing a multi-dimensional
training plan for all employees so as to support the development of our talent pool. The Company has
devised targeted training programs for different groups including fresh graduates new hires existing Montage Star Program - Training for Fresh Graduates
employees and managers at all levels. These training programs cover a wide spectrum of areas such as
general knowledge professional skills and leadership aiding in enhancing their professional competence
and capabilities and facilitating their growth and development. During the reporting period Montage
The Company has launched the Montage Star Program specifically designed for fresh
Technology independently developed and organized a total of 87 courses (spanning product knowledge
graduates to help them transition smoothly from academia to the professional world within
technology management and general skills) with an average training time of 22.75 hours per person
a span of 6 months. The program encompasses: a one-week immersive orientation (covering
achieving a 100% training coverage rate.company culture roles and responsibilities of various departments introduction to company
products exhibition hall and laboratory visits training exams reading activities kick-off CEO
Average training time symposium team-building activities target communication seminars etc.) job skills and
87 100 general ability training as well as mid-term and final assessments among other components.22.75 %
Training courses Training coverage rate
hours per person
Talent Training System
Montage Star Montage Freshmen Montage Chip Montage Youth
Program Program Program Program
A 6-month training Training program for Training program Internal technology and
program for fresh new employees for managers project experience learning
graduates and sharing program
Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 41MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Health and Safety
Academia-Industry Collaboration
Health and safety are paramount in all our business operations. Montage Technology is committed to
preventing workplace accidents reducing occupational hazards and maintaining a safe and comfortable
Montage Technology keeps deepening its academia-industry partnerships. The Company has
working environment. We strictly adhere to the relevant mandates such as the OOcccuuppaattiioonall DDisiseeaassee
jointly established the "Integrated Circuit Design Frontier Technology Joint Laboratory" with
Prevention and Control Law of the People's Republic of Chiina and Guiidelliines fforr Occccupattiional Healltth and
Shanghai Jiao Tong University which has become a critical platform for collaboration between
Safettyy Management SSyyssttems. We persistently improve our internal regulations and systems for
the two entities. Since its inception in 2020 oriented toward scientific research and talent
occupational health and safety management. Regular supervision and inspection are conducted and we
cultivation the laboratory has been dedicated to fostering the comprehensive development of cultivate a culture of safety awareness among employees through ongoing training and assessments
integrated circuits and artificial intelligence fields. thereby promoting a healthy work environment. Moreover Montage Technology has established stringent
safety management requirements for outsourced contractors in the infrastructure department enforced
through contracts and has also engaged supervisory companies to bolster on-site safety and civil
construction management.We mandate that construction contractors have a robust safety management system including a safety
responsibility system safety technical delivery system safety education system safety inspection system
special operators account and licensing system safety assurance plan emergency plan and special
Diverse Training Initiatives
construction program.The supervisory company is primarily responsible for site safety and civil construction management. They
must uphold the relevant safety management system and oversee the entire project process in strict
During the reporting period Montage Technology offered rich courses tailored to the needs of compliance with pertinent laws and regulations. If any safety hazards are identified Montage
employees at various levels and in different positions. Technology must be notified promptly and the project must halt for immediate rectification. The
implementation of the rectification plan is monitored until all the safety risks have been eliminated.Group Course content
Montage Technology requires outsourcing companies to conduct self-inspection of safety management and
continually oversee safety management review work through standardized inspection methods such as
Management Management awareness execution ability business strategy business weekly safety meetings daily inspections special inspections seasonal inspections irregular spot checks
Level trend and communication capability and flight inspections. In addition we are constantly enhancing the management and improvement of
construction sites and personnel by placing construction notices and safety signs implementing on-site
safety protection measures managing high-altitude operations reinforcing training (including three-level
Technical skills business goal setting sales techniques communication
Business safety training for newly recruited employees before assuming their roles training for special operation
skills innovation awareness intellectual property protection and personnel etc.) and conducting training and drills for emergency rescue.Department
information security
During the reporting period
New Company administration finance legal intellectual property quality
Employees management system company culture and product knowledge
0000%
Work-related Work-related Lost work hours for Absence rate
incidents fatalities work-related injuries
Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 42MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Employee Care Employee Benefits
The Company has implemented a comprehensive benefits system focusing on the holistic quality of our
Montage Technology places a significant emphasis on the welfare and satisfaction of each of its employees' work-life balance. The Company provides non-compensatory benefits such as holiday
employees. We actively seek their feedback continue to augment our employee care services and allowances social insurance additional commercial insurance and regular health check-ups for all
endeavor to enhance their feelings of fulfillment accomplishment and contentment. employees.Holiday Benefits
Employee Communication Employees are entitled to all statutory holidays paid annual leave personal time off paid sick leave
marriage leave maternity and paternity leave breastfeeding leave bereavement leave and public
Montage Technology has established robust channels for employee feedback and maintains a consistent holidays. Montage Technology further supplements these with additional welfare leaves to ensure
and fruitful dialogue with the employees. We foster an open atmosphere for communication by holding our employees maintain a healthy work-life balance.regular employee meetings and promoting cross-hierarchical interaction ensuring we are always attuned
to our employees' needs. Insurance Benefits
Additionally the Company provides various avenues for reporting grievances and complaints to safeguard In accordance with the needs of our employees Montage Technology provides supplementary
the rights and interests of the employees. Discrimination and harassment are strictly forbidden under our commercial insurance for them and their children which includes coverage for major illnesses
zero-tolerance policy. If such situations arise employees can report incidents through the Company's accidents and medical care thereby ensuring comprehensive protection for our employees' families.dedicated complaint email box or during employee meetings. The Company firmly protects the privacy of
those who come forward and vigilantly prevent any form of retaliation. Festival Benefits
Montage Technology acknowledges major festivals with celebratory activities and provides
Workplace Environment additional allowances to all employees on these occasions.Mental Health
In 2022 Montage Technology relocated its
headquarters to a new office offering a more Understanding the importance of mental health we have officially initiated the "Employee Care
spacious and comfortable office environment for Project (EAP)" to offer professional mental health services to our employees.the employees.Maternal
Benefits
Montage Technology has established
a dedicated mother-and-baby room
and provides maternity leave in
accordance with regulations.Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 43MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Employee Activities
Montage Technology strongly encourages employees to enrich their daily lives even during work hours.Pandemic Care
We organize a diverse range of activities aimed at promoting both physical and mental health among
our workforce. Through these initiatives we aim to foster a sense of belonging and identity within our
employees and to enhance their connection to the Company.During the Shanghai pandemic in 2022 the Company was concerned with the health
and safety of all employees. We actively collected supplies and provided epidemic gift
Club Activities Employee birthday party Team activities packages to employees who were confined at home due to the epidemic helping to
solve the material difficulties and making employees feel the care and warmth of the
Badminton club Company.Monthly employee birthday party to
Annual travel
Basketball club celebrate the birthdays of employees
Fun sports meeting
Tennis club who have birthdays that month
Yoga club
Diverse Clubs
Montage Technology organizes a variety of sports clubs for employees to foster an active
and healthy lifestyle. These include a badminton club a basketball club a tennis club and a
yoga club among others.Basketball Club Yoga Club Badminton Club
Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 4405
Green Development
and Social Contribution
Montage Technology is actively engaged in achieving carbon neutrality
practising green and low-carbon concepts and implementing sustainable
operational practices including energy conservation and emission
reduction. Concurrently we maintain a strong focus on social welfare
actively fulfill our social responsibilities and strive for a harmonious and
sustainable co-development of our company society and the environment.Waste and Hazardous Substance Management
Environmental Advocacy and Cooperation
Water Resources and Effluents Management
Energy Management
Climate Change and GHG Management
Community Engagement
45MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Climate Change Mitigation KPI 2022 Unit
Energy Use a
Aligning with national strategies Montage Technology actively addresses climate change issues and
integrates environmental protection principles into the daily operation and management practices. Gasoline 2888 Liter
Purchased electricity 3225.78 MWh
Green Office
Total energy consumption b 3251.38 MWh
Montage Technology adheres stringently to laws and regulations such as the Environmental Protection Law
and the Energy Conservation Law of tthe Peoplle's Republic of Chiina among otther rrellevant statutes. In the Direct energy consumption 25.60 MWh
course of our operations we endeavor to cultivate a heightened awareness among our employees about
Indirect energy consumption 3225.78 MWh
the importance of energy conservation and emissions reduction. Our goal is to minimize resource waste
and jointly foster an efficient energy-saving and environmentally friendly office environment. Comprehensive Energyintensity 5.57 MWh/Person
Notes:
a. The Company's main direct energy source is gasoline and the main indirect energy source is purchased electricity.b. Total energy consumption is calculated in accordance with the conversion factors of the General Principles for
Calculatiion of Comprehensiive Energy Consumptiion (GB/T2589-2020) of the national standard of the People's
Republic of China.Energy Conservation and Consumption Reduction
Upgrading the intelligent management of office air conditioning to achieve energy saving
through online remote device management
Green Initiative
Standardizing the use of office lighting and turning off lights in the corresponding area under
good natural light during the day Electricity and water saving: The posters and signs are posted in the
office and we encourage employees to turn off lights and taps when
Turning on the lights and air conditioning only in the corresponding work area during leaving thus promoting resource conservation.overtime work to avoid energy waste caused by large-scale use of air conditioning or lighting Paperless office: Employees are encouraged to adopt sustainable
printing practices such as double-sided printing and using black and
Launching printing and copying equipment with sleep mode which could automatically white mode to reduce paper consumption. Moreover the use of
reduce power usage when not in use second-hand paper for printing internal documents is advocated to minimize paper waste.Garbage sorting: The Company has dry and wet waste recycling bins in the tea rooms on each
Suggesting that the employees turn off electrical devices such as air conditioning computers floor. Coupled with the display of waste sorting advocacy signage we aim to ensure the
and fans when leaving the office for a long time effective implementation of waste segregation and to contribute to our broader environmental
conservation efforts.Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 46MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Greenhouse Gas Emission Reduction Environmental Footprint Reduction
The predominant source of greenhouse gas emissions within Montage Technology stems from energy Montage Technology places great emphasis on monitoring resource consumption and waste generation
consumption during our operational processes. We are steadfast in our adherence to relevant industry throughout our operational processes. Our aim is to continually enhance resource utilization rates as part of our
energy-saving laws and standards within our operational areas proactively conducting energy commitment to fostering sustainable and green operational practices and development.management and monitoring initiatives and promoting meticulous energy use management. In addition
we are committed to improving our energy structure through the renovation and upgrade of energy-
consuming equipment and the active exploration of renewable energy sources to enhance our energy Water Management During the reporting period
utilization efficiency. During the reporting period the Company's greenhouse gas emissions were as Montage Technology is firmly committed to the strict implementation the total water consumption
follows. of a water conservation system. We adhere to stringent water-saving of the Company was
management practices within our daily office environments and
undertake a variety of water-saving measures. These include the 4973.41ton
Greenhouse Gas (GHG) Emissions a 2022 Unit optimization and upgrade of equipment the intensification of
with the intensity figure of
wastewater treatment and the recycling of water resources. In
GHG emissions (Scope 1) 6.52 tons of CO2e addition we are dedicated to fostering a culture of water
conservation among our employees. 8.52ton per person
GHG emissions (Scope 2) 1808.66 tons of CO2e
Waste Management
Total GHG emissions
1815.18 tons of CO e
(Scope 1 + Scope 2) 2 Montage Technology stringently adheres to relevant laws and standards regarding pollutant disposal
management. We advocate for the standardized treatment and discharge of solid liquid and gaseous wastes
and aim to bolster environmental awareness among all employees as part of our green operations initiative.Total GHG emissions intensity 3.11 tons of CO2e/person Concurrently we intensify our efforts towards waste recycling to achieve significant waste reduction.Notes: Through the judicious recovery and disposal of waste we strive to repurpose and derive value from what would
a. Greenhouse gas emissions from various Montage Technology operating locations are calculated in accordance otherwise be discarded thereby effectively transforming waste into wealth and cultivating a more sustainable
with the rules applicable to the specific country where the office operates. For instance our China office computes its operational model.greenhouse gas emissions in line with the Guiiddeelilnineess f ofor Cr aClaculclautliantgin agn da nRde pRoertpinogrt iGnrge eGnrheoeunsheo Guasse E Gmaiss iEomnsis osfio Ontsh eorf
IOntdhuesrt rIinesd u(Tsrtiraile)sissued by the National Development and Reform Commission of the People's Republic of China and Effluents are discharged into the municipal sewage pipeline and eventually enter the
the Nottiiccee o onn M Maannaaggeemmenetn ot fo Gf rGereenehnohuosues Gea Gsa Esm Eimssiossni oRne pRoerptionrgt ifnogr Pfoorw Peorw Inedru Isntdryu sEtnrtye Erpnrtieserps rfirsoems f2r0o2m3 2to0 230 2t5 issued wastewater treatment plant
by the Ministry of Ecology and Environment of the People's Republic of China. Meanwhile our US office calculates its Effluents According to the monitoring results the effluents discharged by the Company meet the
greenhouse gas emissions using the Emission Factors for Greenhousse Gass IInvveennttoorriieess issued by the US Environmental compliance requirements of the operating area
Protection Agency.Waste gas Waste gas mainly comes from automobile exhaust and diesel generators
Solid waste mainly consists of domestic garbage generated by employees in the office
Waste sorting is actively carried out to promote resource recycling in all division offices
Solid waste For hazardous waste such as batteries the Company has a waste battery recycling box for
unified recycling
At present 100% of the Company's solid waste is handed over to the property management
company for disposal
Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 47MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Social Welfare and Charity
We organized a total
The Company is committed to actively fulfilling its corporate social Actively Fulfilling Social Responsibilities
responsibility offering steadfast support and assistance to societal and of 6 volunteer activities during the Pandemic
community development and tirelessly striving to keep a harmonious
throughout the year
balance between the Company and the society at large. Moreover we
design and implement pragmatic public welfare support plans led by our donated goods and During the Shanghai 2022 pandemic
senior leadership to foster a culture of active participation among all our cash worth more than periods Montage Technology took proactive
employees. During the reporting period we sustained close-knit measures to fulfill the social responsibilities.cooperation with public welfare foundations bolstering our corporate
CNY 600000 A dedicated task force was established
image through generous donations dedicated volunteer services and leveraging the Company's geographically
altruistic blood donations. diverse layout to efficiently coordinate
resources and procure essential pandemic
prevention supplies. Through our liaison
with the XuHui District Political Consultative
Conference we were able to donate a
Special Fund to Support School Construction considerable quantity of these prevention
materials to local communities. This
contribution was instrumental in supporting
During the reporting period the Company inaugurated the "Montage Cultural and Educational the tireless efforts of front-line workers in Donation of pandemic prevention supplies
Special Fund" under the auspices of the Shanghai Charity Foundation. This fund is exclusively their crucial pandemic prevention and
earmarked for the construction of the comprehensive building project at Fengshan Elementary control work.School located in Baoxiu Town Shiping County in the Honghe Prefecture of Yunnan Province.The project is presently underway and making steady progress towards its completion.cheer up
Construction site of public welfare campus project
Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 48MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Voluntary Blood Donation Invitation Extended to Montage Technology's
General Manager to Partake in the Torch Relay for
Beijing 2022 Winter Olympics
In 2022 the Company proudly hosted an annual
employee blood donation drive with our esteemed
Mr. Stephen Tai General Manager of Montage Technology was invited to be the 35th
General Manager Mr. Stephen Tai setting an exemplary
torchbearer in the Beijing Grand Canal Forest Park relay zone. On the afternoon of February
precedent by being the first to participate. Our employees
4th Mr. Stephen Tai held the "Flying" torch and completed the handover of the torch with the
demonstrated their unwavering commitment and
previous torchbearer. With high spirits he strode to the next relay point handing over the torch
enthusiasm by actively engaging in this noble cause.with the Olympic spirit to the next torchbearer smoothly.Through selfless blood donations and the expression of
compassion we not only embodied the essence of
As the co-founder and General Manager of Montage Technology Stephen Tai feels extremely
genuine human connection but also effectively fulfilled
proud to become a torchbearer. He said "Like many chip companies Montage Technology has
our corporate social responsibility.always adhered to the craftsmanship spirit of excellence and innovation which perfectly
matches the Olympic motto of 'Faster Higher Stronger'. The relay of the Olympic torch will
further inspire every Montage Technology employee to overcome difficulties pursue excellence
and contribute to the development of the IC industry! We wish the Beijing Winter Olympics a
perfect success and we wish China's IC industry will carry on the Olympic spirit continue to
move forward and strive for a better future!"
Montage Technology organized employees to participate in blood donation activities Montage Technology 's General Manager participated in Winter Olympics Torch Relay
Corporate Innovation Empowerment Supply Chain Management and Employment Management and Green Development and
Governance and Quality Service Industry Cooperation Harmonious Workplace Social Contribution 49MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Appendix I: Key Performance Indicators
2022 Environmental Key Performance Indicators
Key Performance Indicators Value Unit Key Performance Indicators Value Unit
Energy Use1 Waste Disposal
Gasoline consumption 2888 Liter General solid waste generation 25.71 Tons
Purchased electricity usage 3225.78 MWh Paper consumption in office 35.07 Ten thousand sheets
Comprehensive energy consumption2 3251.38 MWh
Direct energy consumption 25.60 Note:MWh
1. The main direct energy source involved in the Company is gasoline and the main indirect energy source is
Indirect energy consumption 3225.78 MWh purchased electricity.
2. Comprehensive energy consumption is accounted for in accordance with the Generall Rulles for Callcullatiing
Comprehensive energy consumption intensity 5.57 MWh/person Comprehensive Energy Consumption (GB/T 2589-2020) conversion factor of the National Standard of the
Greenhouse Gas Emissions3 People's Republic of China.
3. Greenhouse gas emissions from various Montage Technology operating locations are calculated in
Total GHG emissions 1815.18 Tons of CO e accordance with the rules applicable to the specific country where the office operates. For instance our 2
China office computes its greenhouse gas emissions in line with the Guidelines for CCallcullatiing aannd
Scope 1 6.52 Tons of CO e Reporrttiinngg G Grerenehnohuosues Ge aGs aEms iEssmioisnsi onf sO thoef r OIntdhuesr trIineds u(Tsrtiraiel)sissued by the National Development and 2
Reform Commission of the People's Republic of China and the Nottiiccee o onn M Manaangaegmeemnet notf Gofr eGerneheonuhseo uGsaes
Scope 2 1808.66 Tons of CO e GEmasis sEiomni sRseiopnor tRinegp oforrt iPnogw feorr I nPdouwsteryr EIntdeurpstrrisye sE nfrtoemrp 2ri0s2e3s tofr o20m2 5 issued by the Ministry of Ecology and 2
Environment of the People's Republic of China. Meanwhile our US office calculates its greenhouse gas
GHG emissions intensity 3.11 Tons of CO e/person emissions using the EEmisisssioionn F aFactcotrosr sfo fro Gr reGernehenohuoseu sGea sG Iansv eIntvoernietos rissued by the US Environmental 2
Protection Agency.Water Resources
Total water consumption 4973.41 Tons
Water consumption intensity 8.52 Tons/person
50MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
2022 Social Key Performance Indicators
Indicators Value Unit Indicators Value Unit
Employment By Education Degree
Signing rate of labor contracts 100 % Bachelor's degree 43 %
Commercial insurance coverage 100 % Junior college degree 3 %
Total number of employees 641 Person High school degree and below 1 %
Full-time and Part-time Employees Health and Safety
Full-time employees 641 Person Number of work-related incidents 0 Cases
Part-time employees 0 Person Number of work-related fatalities 0 Person
Employee Ratio Lost work hours for work-related injuries 0 Hours
By Gender Absence rate 0 %
Male 70.83 % Employee Training
Female 29.17 % Percentage of trained employees 100 %
By Age Average training hours 22.75 Hours
30 years old and below 29.64 % Average training hours for male employees 24.96 Hours
31 to 50 years old 41.12 % Average training hours for female employees 10.45 Hours
51 years old and above 6.24 % Compensation Incentives
By Function Patent reward 117 Person
R&D 73 % Comprehensive coverage of equity incentives 94 %
Marketing 10 % Performance and Career Development Reviews
Management and supporting 17 % Percentage of employees receiving regular
100%
By Education Degree performance and career development reviews
Doctorate degree 2 % Suppliers
Master's degree 51 % Supplier responsible mineral procurement survey coverage 100 %
51MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Appendix II: GRI Content Index
Montage Technology has reported the information cited in this GRI GRI Chapter Index Page
Statement of use content index for the period from January 1 2022 to December 31 Standard
Disclosure
2022 with reference to the GRI Standards. Governance
GRI 1 used GRI 1: Foundation 2021 Role of the highest governance body Risk Management 17-18
2-12 in overseeing the management of
impacts ESG Governance 23-25
GRI
Disclosure Chapter Index Page Risk ManagementStandard 17-18Delegation of responsibility for
2-13 managing impacts
GRI 2: General Disclosures 2021 ESG Governance 23-25
The organization and its reporting practices
Role of the highest governance body
2-14 in sustainability reporting ESG Governance 23-25
2-1 Organizational details About Montage Technology 3
Entities included in the organization’s
2-2 About This Report 1
sustainability reporting 2-16 Communication of critical concerns ESG Governance 23-25
Reporting period frequency and
2-3 About This Report 1 Strategy policies and practices
contact point
2-4 Restatements of information No information restatement Statement on sustainable 2-22 23-25development strategy ESG Governance
Activities and workers Business Ethics 19
Activities value chain and other
2-6 Business Field 5 Supply Chain Management 34business relationships
2-23 Policy commitments
Talent Attraction 39-40 Responsible Minerals Sourcing 35
2-7 Employees
Appendix I: Key Performance Indicators 50-51 Talent Attraction 39-40
Governance Business Ethics 19
2-9 Governance structure and composition Governance Structure 15-16 Supply Chain Management 34
2-24 Embedding policy commitments
Nomination and selection of the
2-10 Governance Structure
highest governance body 15-16 Responsible Minerals Sourcing 35
2-11 Chair of the highest governance body Governance Structure 15-16 Talent Attraction 39-40
52MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
GRI GRI
Disclosure Chapter Index Page Disclosure Chapter Index PageStandard Standard
Strategy policies and practices GRI 205: Anti-corruption 2016
Processes to remediate negative Communication and training about
2-25 impacts Business Ethics 19 205-2 anti-corruption policies and procedures Business Ethics 19
2-26 Mechanisms for seeking advice and Confirmed incidents of corruption
raising concerns Business Ethics
19 205-3 Business Ethics 19
and actions taken
During the reporting period there were no
GRI 206: Anti-competitive Behavior 2016
significant instances of non-compliance no
2-27 Compliance with laws and regulations fines or non-monetary sanctions resulting from
non-compliance 3-3 Management of material topics Business Ethics 19
2-28 Membership associations Industrial Synergy 36-37 Environmental
Stakeholder engagement GRI 302: Energy 2016
2-29 Approach to stakeholder engagement ESG Governance 23-25 3-3 Management of material topics Climate Change Mitigation 46-47
2-30 Collective bargaining agreements Talent Attraction 39-40 Climate Change Mitigation 46-47
302-1 Energy consumption within the
GRI 3: Material Topics 2021 organization Appendix I: Key Performance Indicators 50-51
3-1 Process to determine material topics ESG Governance 23-25 Climate Change Mitigation 46-47
302-3 Energy intensity
3-2 List of material topics ESG Governance 23-25 Appendix I: Key Performance Indicators 50-51
Economic GRI 303: Water and Effluents 2018
GRI 201: Economic Performance 2016 3-3 Management of material topics Environmental Footprint Reduction 47
3-3 Management of material topics Financial Performance 11 Management of water discharge-303-2 Environmental Footprint Reductionrelated impacts 47
Direct economic value generated and
distributed Financial Performance
11 Environmental Footprint Reduction 47
303-5 Water consumption
GRI 204: Procurement Practices 2016 Appendix I: Key Performance Indicators 50-51
3-3 Management of material topics Supply Chain Management 34 GRI 305: Emissions 2016
GRI 205: Anti-corruption 2016 3-3 Management of material topics Climate Change Mitigation 46-47
3-3 Management of material topics Business Ethics 19 305-1 Direct (Scope 1) GHG emissions Climate Change Mitigation 46-47
53MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
GRI Chapter Index Page GRI Chapter Index Page
Standard Disclosure Standard Disclosure
GRI 305: Emissions 2016 GRI 403: Occupational Health and Safety 2018
305-1 Management of material topics Appendix I: Key Performance Indicators 50-51 3-3 Management of material topics Health and Safety 42
Climate Change Mitigation 46-47 Occupational health and safety
Energy indirect (Scope 2) GHG 403-1 management system Health and Safety 42
305-2 emissions
Appendix I: Key Performance Indicators 50-51 Hazard identification risk assessment 403-2 Health and Safetyand incident investigation 42
Climate Change Mitigation 46-47 Worker training on occupational
403-5 Health and Safety
305-4 GHG emissions intensity health and safety
42
Appendix I: Key Performance Indicators 50-51
403-6 Promotion of worker health Health and Safety 42
GRI 306: Waste 2020 Prevention and mitigation of
occupational health and
3-3 Management of material topics Environmental Footprint Reduction
403-7 Health and Safety
47 safety impacts directly linked by
42
business relationships
Management of significant waste-
306-2 Environmental Footprint Reductionrelated impacts 47 Health and Safety 42
403-9 Work-related injuries
306-3 Waste generated Appendix I: Key Performance Indicators 50-51
Appendix I: Key Performance Indicators 50-51
GRI 308: Supplier Environmental Assessment 2016
403-10 Work-related ill health Health and Safety 42
3-3 Management of material topics Supply Chain Management 34 GRI 404: Training and Education 2016
New suppliers that were screened
308-1 Supply Chain Managementusing environmental criteria 34 3-3 Management of material topics Talent Development 40-42
Social Programs for upgrading employee
404-2 Talent Development 40-42
skills and transition assistance programs
GRI 401: Employment 2016
Percentage of employees receiving Talent Development 40-42
404-3 regular performance and career
3-3 Management of material topics Talent Attraction 39-40 development reviews Appendix I: Key Performance Indicators 50-51
Talent Attraction 39-40
New employee hires and employee GRI 405: Diversity and Equal Opportunity 2016
turnover rate
Appendix I: Key Performance Indicators 50-51
3-3 Management of material topics Talent Attraction 39-40
Benefits provided to full-time Diversity of governance bodies and
401-2 employees that are not provided Employee Care 43-44 405-1 Talent Attraction 39-40employees
to temporary or part-time employees
54MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
GRI
Disclosure Chapter Index Page
GRI
Standard Standard Disclosure
Chapter Index Page
GRI 406: Non-discrimination 2016 GRI 418: Customer Privacy 2016
3-3 Management of material topics Talent Attraction 39-40 3-3 Management of material topics Information Security 21-22
GRI 408: Child Labor 2016
3-3 Management of material topics Talent Attraction 39-40
GRI 409: Forced or Compulsory Labor 2016
3-3 Management of material topics Talent Attraction 39-40
GRI 413: Local Communities 2016
3-3 Management of material topics Social Welfare and Charity 48-49
GRI 414: Supplier Social Assessment 2016
Supply Chain Management 34
3-3 Management of material topics
Responsible Minerals Sourcing 35
Supply Chain Management 34
New suppliers that were screened
414-1 using social criteria
Responsible Minerals Sourcing 35
GRI 416: Customer Health and Safety 2016
3-3 Management of material topics Quality Management 29
Assessment of the health and safety
416-1 impacts of product and service Quality Management 29
categories
GRI 417: Marketing and Labeling 2016
3-3 Management of material topics User Experience 32
Requirements for product and service
417-1 User Experienceinformation and labeling 32
55MONTAGE TECHNOLOGY 2022 Environmental Social and Governance (ESG) Report
Feedback and Suggestions Please rate the following on a scale of 1 to 5
(1 being the lowest and 5 being the highest score)
Dear Reader
Thank you for reading the 220022 EEnnvviirronmentall Social and GGoovveerrnance ((ESG) RReeport ooff 1. Please give your overall evaluation of this report.Montage Technology. In order to provide you and other stakeholders with more professional
and valuable information regarding our ESG management and to constantly improve the 2. Please rate Montage Technology's performance on
ESG responsibilities.quality of the report and promote the company's management and practice capabilities in
ESG we sincerely invite your feedback on your true feelings and your enthusiastic
3. Do you think this report can reflect the environmental
suggestions. Please do not hesitate to give us your comments!
significance of Montage Technology?
You can email or mail us your feedback. Our contact information is as follows: 4. Do you think this report can reflect the social
significance of Montage Technology?
Address：16/F 181 Caobao Road Montage Circle Xuhui District Shanghai 200233 China
Postal Code：200233 5. Do you think this report can reflect the corporate
Email：ir@montage-tech.com governance of Montage Technology?
6. Please rate the degree of information disclosure in
this report.For Montage Technology which of the 7. Please rate the design style of this report.following stakeholder types applies to you?
□ Shareholder & Investor
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□ Consumer and ESG management.□ Partner & Supplier
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