光峰科技:2020年度社会责任报告（英文版）

2020 Social Responsibility Report of
APPOTRONICS
Appotronics Corporation Limited
Content
About this Report.......................................................................................................................................................................04
01
Stakeholder Analysis............................................................................................................................................................14
1. Stakeholder analysis...............................................................................................................................................................................14
2. Substantive issues ..................................................................................................................................................................................16
3. Social responsibility management process system..........................................................................................................................17
04
Corporate Governance........................................................................................................................................................38
1. Corporate governance structure...........................................................................................................................................................38
2. General meeting board of directors and board of supervisors......................................................................................................39
3. Internal control.........................................................................................................................................................................................41
09
Message about Responsibility...................................................................................................................................06
1. Appotronics’s concept of responsibility...........................................................................................................................................06
2. User foremost and technology for good .............................................................................................................................................06
3. Green low-carbon and healthy development...................................................................................................................................07
4. Embrace regulation to achieve transparent governance..................................................................................................................07
5. Put people first by the management mechanism.............................................................................................................................08
6. Scientific prevention and control measures against COVID-19.......................................................................................................08
02
Economic Issues.........................................................................................................................................................................24
1. Performance pressure amid the epidemic.............................................................................................................................................24
2. Intellectual property ...............................................................................................................................................................................28
06
Environment Issues ...............................................................................................................................................................30
1. Concept of sustainable development .................................................................................................................................................30
2. Energy-saving and environmentally friendly products.....................................................................................................................30
3. Energy consumption and key environment indicators in 2020........................................................................................................33
07
Social Issues....................................................................................................................................................................................34
1. Healthcare for employees in prevention of COVID-19.......................................................................................................................34
2. Take the lead in resume production to facilitate economy recovery..............................................................................................34
3. Donate materials to empower scientific epidemic prevention and controlling............................................................................35
4. Care eyes with laser display to protect the vision of teenagers.......................................................................................................36
5. Innovate application scenarios for laser display to care about the mental health of children...................................................36
6. Establish a system to support social welfare as normal activities....................................................................................................37
7. Be awarded as the “Most Socially Responsible Listed Company”..............................................................................................37
08
Company Profile........................................................................................................................................................................10
1. Appotronics - inventor of the ALPD? laser display technology.........................................................................................................10
2. What is the ALPD? technology................................................................................................................................................................11
3. Route of ALPD? laser display ..................................................................................................................................................................12
4. Core values ...............................................................................................................................................................................................13
03
Sustainable Development Plan.................................................................................................................................44
1. Fulfill corporate environment responsibility to contribute to carbon neutrality..........................................................................44
2. Take lead in healthy development by making innovation................................................................................................................45
3. Pursue a better Appotronics..................................................................................................................................................................46
10
Social Responsibility Management......................................................................................................................18
1. Employee benefits ..................................................................................................................................................................................18
2. Customer benefits ...................................................................................................................................................................................21
3. Investor relationship ....................................................................................................................................................................................22
4. Government relationship .......................................................................................................................................................................23
05
2020 Social Responsibility Report
4 5
Appotronics Corporation Limited
This 2020 Social Responsibility Report of Appotronics Cor-
poration Limited (hereinafter referred to as “Appotronics”
stock code: 688007.SH) is the second social responsibility
report of the Company since its listing.On the principles of being objective standard transpar-
ent and comprehensive this Report released together
with the annual report disclosed the practices and perfor-
mance of Appotronics in operation environment society
and other responsibility fields in 2020.
For any questions you can reach Appotronics by its social
responsibility email at: csr@appotronics.cn.
Coverage
In principle this Report covers Appotronics and its subsidiaries un-
less specifically noted otherwise. For the convenience of expression
“Appotronics” “the Company” and “we” in this Report refer to
“Appotronics Corporation Limited”.
Time range
January 1 to December 31 2020. To enhance the comparability and
completeness this Report traces back to past years or extends to 2021
in certain parts.
Date of release
April 23 2021
Principle of disclosure
When selecting the content for this Report we followed the principles
of materiality and completeness in the guidelines of the Global Re-
porting Initiative (GRI) (G4) to present statements in economic social
and environment aspects with a focus on Appotronics’s sustainable
development responsibilities in products environment employees
business partners and government authorities. Indicators in this Re-
port cover all entities of the Company that may have material effects
on its financial and operating policies which coverage is same as the
annual report.
Data collection
In this Report the data and information related to financial indicators
comes from the audited annual report of Appotronics while the data
and information related to non-financial indicators comes from the
daily management statistics of relevant departments of the Company.In case of any discrepancy between the disclosed financial data and
the data in the annual report the latter shall prevail. Appotronics guar-
antees that this Report is free from any false disclosure misleading
statements or material omissions.Reference standards
This Report was prepared with reference to the G4 Sustainability Re-
porting Guidelines of the Global Reporting Initiative (GRI) and the
Guidelines on Corporate Social Responsibility Reporting for Chinese
Enterprises (CASS-CSR 4.0).
Part I
About this Report01
2020 Social Responsibility Report About this Report
6 7
Appotronics Corporation Limited
1. Appotronics’s concept of responsibility
The year 2020 is a year for Appotronics to take our initiative in addressing the crisis and
challenge - the spread of COVID-19 throughout the world caused in-depth impact on the
world and the complicated international conditions also brought more uncertainties. As
we were moving forward under pressure Appotronics actively fulfilled its responsibilities
as a corporate social citizen by optimizing the corporate governance continuously making
disruptive innovations implementing green and low-carbon development and actively
performing its environment responsibilities and social responsibilities.
Appotronics considers social responsibilities as proper obligations of a corporate citizen
to guarantee the sustainable development of the enterprise. The compliance with laws
regulations and social rules the provision of technically advanced products for society
the win-win development with customers and the creation of returns to shareholders are
important embodiment of the value of the Company; to promote technical advancement
to focus on the protection of intellectual property rights and to care about the benefits and
development of employees are inevitable responsibilities of the Company; and social wel-
fare activities like the support provided in response to COVID-19 reflect our wish for mak-
ing contribution to society and promote the stability and prosperity of society.
2. User foremost and technology for good
Appotronics believes that by making unremitting efforts in technical innovations we will
create value for the society provide better services to the public and effectively fulfill the
social responsibilities as a corporate citizen. With our persistence on value creation tech-
nology innovation and long-term development we will continuously make disruptive
technology innovations in the chosen track to create a better life for people with scientific
innovation. In 2020 we released the smart video and audio operating system Feng OS
the new laser household cinema D30 the world’s first 100-inch flexible Fresnel anti-light
screen Fengmi laser TV 4K Cinema pro laser micro projector vogue pro S series large ven-
ue projectors and many other new products enabling us to take the lead in the technology
development of the industry provide high-level support for large venues create fascinating
immersive light and video spaces and provide consumers with interactive entertainment
experience with portable large screens to enrich application scenarios.
3. Green low-carbon and healthy development
In essence as a green industry featuring lower energy consumption less pollution and
higher energy efficiency the technology industry matches with the pursuit of ecology and
environment protection in the post-industrial civilization. Technology enterprises can em-
ploy their strong innovative capabilities to make use of cutting-edge technologies to trans-
form the mode of energy utilization and reform the industrial chain and system hence
reducing carbon emission during industrial production.
Appotronics insists on the idea of sustainable development to actively promote energy
saving and environment protection. In 2020 we were in conformity with standards in all
key environment indicators - reduced the average water consumption per device by 35.2%
and average electricity consumption by 22.5% year on year and increased the productivity
by 31% and reduced the working hours by 15% while greatly reducing the energy and re-
source consumption.
4. Embrace regulation to achieve transparent gover-
nance
Healthy development also means that we are willing to operate as a transparent and healthy
public company - to embrace regulation make sufficient information disclosure accept su-
pervision from market participants in an honest and open manner and improve the level of
corporate governance.We have defined specific duties and responsibilities for the general meeting board of direc-
tors board of supervisors and independent directors and established the Strategy Commit-
tee Nomination Committee Compensation and Performance Assessment Committee and
Audit Committee under the board of directors. The Audit Department a permanent body
under the Audit Committee carries out internal business audit and supervision in an inde-
pendent and objective manner under the leadership of the Audit Committee and keeps in
routine communication with the Audit Committee to promptly report audit and regulatory
information to the board of directors and ensure the effective operation of internal control
of the Company.
In 2020 we disclosed 4 true accurate and complete regular reports promptly disclosed
147 interim announcements on the resolutions of the general meeting and use of offering
proceeds and performed the information disclosure obligations in accordance with law to
promptly notify investors of significant operating updates of the Company and progress of
major matters hence protecting the legitimate rights of investors.
02 Part IIMessage about Responsibility
2020 Social Responsibility Report Message about Responsibility
8 9
Appotronics Corporation Limited
5. Put people first by the management mecha-
nismWe uphold the core values of “respect customers guided by performance live up toone’s words criticism and self-criticism” and are committed to the mission of “newlight new life” to “become the pioneer in the display industry through disruptive tech-nical innovations and differential mode covering the entire value chain”. We held video
competition of corporate culture elected the corporate cultural ambassador organized all
employees to learn and understand the corporate culture promoted the implementation
of corporate documents and upheld the corporate culture as guidelines for daily activities
hence driving internal innovation and reform by culture to motivate and employees at all
levels to make innovations.Meanwhile we formulated incentive programs corresponding to the operating conditions
objective achievement and business characteristics and provided a large platform for
employees to make full play of their talents and achieve personal growth by improving
the internal and external training mechanism providing diversified promotion routs andcontinuously expanding the scope of employee benefits hence allowing all “Appotronicspeople” to benefit from the development of the Company.
6. Scientific prevention and control measures
against COVID-19
At the beginning of COVID-19 we made quick judgement to establish the “Epidemic-fight-ing Panel” to implement preventive measures such as environment sterilization issuance
of facial masks etc. With the prevention measures implemented immediately none of our
employees was verified or suspected of being infected. We implemented comprehensive
control and prevention measures on an ongoing basis as normal activities so as to provide
employees with prevention instructions materials and mental care to safeguard the health
and lives of all employees. Appotronics duly resumed production on February 10 as one of
the first high-tech enterprises resuming production in Shenzhen hence setting an exempla-
ry role in resuming production and promoting economy recovery with safety guaranteed.
After the occurrence of the epidemic we immediately offered our support to the front line
by providing large laser display screens to Shenzhen Disease Control Center to facilitate
visualization of medical data. Furthermore we donated customized laser smart projectors
equipped with keyboards and mouse for interaction to medical teams went to Wuhanand supported in online education to help children of those went to Wuhan take “onlinelessons” in a safe way solving the concerns of the medical staff so that they may focus on
fighting COVID-19 without worrying about their home.
2020 Social Responsibility Report Message about Responsibility
10 11
Appotronics Corporation Limited
1. Appotronics - inventor of the ALPD? laser dis-
play technology
Appotronics is a global laser display technology enterprise holding
globally leading innovative technologies and core patents and capa-
ble of developing and manufacturing core devices. Our products are
widely used in cinema TV business education entertainment large
venue presentation government and other display fields.
03 Part IIICompany Profile
2. What is the ALPD? technology
The brightest artificial light source with the purest colors on
the world by now
Laser display is considered as the next generation display
technology following LCD and OLED
The ALPD? technology combines the industry basis of semi-
conductor laser lighting with China’s advantages in rare
earth resources
After four upgrades the ALPD? technology has repeatedly
broken and created brightness and performance records in
the industry to achieve the brightest semiconductor laser
light source developed and manufactured independently by
Appotronics
Released the world’s first commercial laser light source tech-
nology in 2007 (registered trademark ALPD?)
One of the first enterprises listed on the SSE STAR Market - the
first in Guangdong Province and in the laser display industry
on the A-shares market
Included in the first batch of stocks for the “STAR 50”
Leader in the laser display industry with technology industri-
alization achieved throughout the world
2020 Social Responsibility Report Company Profile
12 13
Appotronics Corporation Limited
3. Route of ALPD? laser display
2006
2007
2014
2017
2019
2013
2016
2018
2020
Established in 2006 committed to developing
next generation semiconductor light sources with
higher brightness better performance and longer
service life
Released the world’s first 700 ANSI lumens
high-brightness laser smart mini projector
Created the brand “CINIONIC” in Hong Kong in
cooperation with CFGC Barco and CITIC commit-ted to providing “global high-end cinema solu-tions”
Invented the disruptive ALPD? laser display tech-
nology
Established the first ALPD? laser cinema in China
Film International Cinema in the Happy Mall Shen-
zhenWon the first prize in “Science and Technology
Award” granted by China Society of Motion Pic-
ture and Television Engineers
Got listed on the SSE STAR Market in the first batch
- the first in Guangdong Province and in the laser
display industry on the A-shares market stock
code: 688007.SH
Released the world’s first 100-inch TV which won
the highest award at Consumer Electronics Show
(CES) 2013 - Product of the Future
Released the world’s first 100-inch ALFA flexible
Fresnel anti-light screen
Vision
To become the pioneer in the display industry through
disruptive technical innovations and differential mode
covering the entire value chain
Mission
New Light New Life
Persist on the track of light focus on the display indus-
try and make use of technology innovation
to create value for users with better visual experience
Core values
Respect customers
Guided by performance
Live up to our words
Criticism and self-criticism
4. Core values
2020 Social Responsibility Report Company Profile
14 15
Appotronics Corporation Limited
Stakeholder analysis is intended to analyze all individuals (and organizations) interested in the
Company to advise the Company of impacts on major stakeholders in the formulation of strate-
gies.
Appotronics identified the following stakeholders by sending questionnaires to customers of our
products management questionnaire and interview and interview with investors relevant gov-
ernment authorities and the media:
1. Stakeholder analysis
Stakeholder Related social responsibility matters
Investors
Investors recognize the investment value and de-
velopment prospect of the Company and promote
the Company to give back to society as a corporate
citizen
Protecting and promoting the in-
terests of investors
Risk management
Right to know
Product cus-
tomers and
partners
As our customers are mainly product users it’s
the Company’s mission to bring advanced prod-
ucts to customers. Meanwhile the Company and
its partners have established a community with
shared interests growing together and sharing
success as to strive to maintain the healthy devel-
opment of the industry
Provide advanced products and
solutions
Provide efficient and high-quality
services
Employees
As a science and technology innovation compa-
ny the Company believes that it is important for
the Company to protect the rights interests and
welfare of employees since talents are its valuable
wealth and resources
Safeguarding basic rights and in-
terests of employees
Giving employees competitive re-
munerations welfare and benefits
Providing employees with large
room for development and pro-
motion in career
Stakeholder Related social responsibility matters
04 Part IVStakeholder analysis
Government
authorities
Government authorities as defenders of market
order are regulators to determine whether the
Company’s products have conformed to market
disciplines
Complying with laws regulations
and industry specifications
Paying taxes in accordance with
law
Protecting and promoting em-
ployment
Promoting the development of
advanced technology
Focusing on intellectual property
protection
Environment
The Company’s sustainable development is
inseparable from taking priority to ecological en-
vironment. During the operation the Company
adheres to the principle that an enterprise besides
assuming primary responsibility for environmental
protection should also actively participate in envi-
ronmental protection
More energy-saving and environ-
mental-friendly products
Environmental-friendly produc-
tion process
Energy saving and emission re-
duction in terms of office environ-
ment
C o m m u n i t y
and society
The Company has paid great attention to the com-
munity as a harmony and stability relationship with
the community and society can affect the market
environment and the sustainable development of
an enterprise
Donating materials to empower
epidemic prevention and con-
trolling
Taking the lead in resume produc-
tion to facilitate economy recovery
Participating in major events such
as the Winter Olympics
2020 Social Responsibility Report Stakeholder Analysis
16 17
Appotronics Corporation Limited
2. Substantive issues
Considering the core competitiveness product attributes product value chain structure
industry characteristics and other factors of the Company as well ass the material matters
identified in the interview feedback information of core stakeholders the Company believes
that Appotronics’s substantive issues of implementing its social responsibility include:
Investors’rights
and interests
Employee
rights inter-
ests and devel-
opment
Win together with
customers
Company’s con-
tribution to
technological
progress
Intellectual property
protection
Sustainable devel-
opment concept
of the Company
Appotronics
substantive issues
in social responsibility
3. Social responsibility management process sys-
tem
The social responsibility management process system consists of several mutually intercon-
nected mutually independent and mutually supplementary social responsibility indicators.It is mainly intended to provide a whole set of comprehensive and systematic tools and stan-
dards to promote the social responsibility management of the Company enhance commu-
nication with stakeholders and assess the performance in corporate social responsibility.The Chairman of Appotronics as the highest responsible person of the social responsibility
management system leads the orderly and healthy development of social responsibility
tasks from a strategic perspective.
Appotronics believes that it is of great importance to identify the stakeholders of produc-
tion and operation pay attention to the communication with stakeholders integrate the
demands of stakeholders to the overall strategy of production and operation and guarantee
the legitimate rights and reasonable requirements of stakeholders during its fulfillment of
corporate social responsibility. To achieve good results in fulfilling its corporate social re-
sponsibility Appotronics should focus on substantive social responsibility issues identified
by all stakeholders. The Company is looking forward to working with all walks of life and
persists in the original intention of creating a better world for people.
2020 Social Responsibility Report Stakeholder Analysis
18 19
Appotronics Corporation Limited
1. Employee benefits
1.1 Employee structure
At the end of 2020 we have a total of 1100 employees at the average age of 32 includ-
ing 456 employees below 30 representing 44% of the total employees. The ratio of
male to female employees is 7:3. Male employees are slightly more than female em-
ployees which is in line with the characteristics of the technology industry.The Company has 369 R&D persons accounting for 32% of the total number of employ-
ees. 32% R&D persons hold a master or doctor degree while nearly 90% R&D persons
hold a bachelor’s or higher degree. The core R&D team is led by the internationally
leading talent in the laser display field and attracted R&D staff graduated from well-
known domestic and foreign universities covering optical electronics materials phys-
ics mechanical designing fine manufacturing etc.
44%
32% 90%32%
7:3
of the employees are below 30
with the average age of 32
ratio of R&D staff in total
employees
ratio of employees holding a
bachelor’s or higher degree
ratio of masters
and doctors
Ratio of male to
female employees
05 Part VSocial Responsibility Man-agement 1.2 Compensation and benefits of employeesBased on the development objective and talent policy of Appotronics we regulate the remuner-ation management on the basic idea of “matching the market environment reflecting the value of talents and achieving incentive effects”. We combine guaranteed benefits with incentives in balanced consideration of internal fairness and market competitiveness to achieve “consistency between responsibilities and rights consistency between capabilities and value and consistencybetween performance and benefits” in the allotment of employee remunerations.With reference to the operating conditions objective achievement and business characteristics
of the Company we have formulated a corresponding incentive plan focusing on performance
to inspire teams and individuals with outstanding performance containing profit sharing bonus
patent rewards major innovation rewards sales commissions sales rewards ranking rewards
(outstanding employee quarterly/annual honor awards) and talent spotter rewards.
1.3 Career development of employees
We classified all positions into 5 position groups according to the position contribution nature
of work and the professional knowledge and skills required - management group technology
group professional group marketing group and operation group set separate career develop-
ment channels for different position groups and formulated the Provisions on Employee Promo-
tion Management to provide effective guidelines for the development of employees.Meanwhile we make every effort for resource building helping talents to achieve rapid devel-
opment on the Appotronics platform. After the efforts for years we have gradually established a
sound talent training system: the “Star Light Program” for the development of college gradu-
ates the “Sharp Light Program” for the development of grassroots managers and the “PolarLight Program” for the development of middle managers. The continuous talent input and
intensive culture inheritance in the training at both the primary and middle level effectively sup-
port the stable development of the Company.Sharp Light
Program
As a training program
for grassroots
managers it is
intended to help
promote business
backbones and
technology backbones
to management
posts as a qualified
grassroots manager.Star Light
Program
As a training program
for college graduates
it is intended to help
them rapidly join
the Company as a
qualified employee.This is the source of
talent building and
foundation of the
talent hierarchy.Polar Light
Program
As a training program
for middle managers it
is intended to empower
trainees with multiple-
business and multiple-
team management
knowledge and skills
through advanced
management training
hence serving as a link
between the senior
level and grassroots.Senior Offi-
cer Training
Growth and
development
programs for senior
officers
2020 Social Responsibility Report Stakeholder Analysis
20 21
Appotronics Corporation Limited
1.4 Diversified training mechanisms
We comprehensively implement the three-level training management system - training programs
at the Company level universal capability training at the central level and field-specific capa-
bility training at the department level. The layered and multiple-perspective trainings provide
a learning and exchange platform for employees hence cultivating all-round talents required
by our business and achieving win-win results of corporate development and personal devel-
opment. In 2020 we organized 608 training sessions for a total of 16500 training hours which
effectively meet the demands for employee personal capability development and organization
capability improvement which received the employee satisfaction of 9 out of 10 scores.
1.5 Other employee benefits
1.5.1 Elect employee representatives to participate in the governance of the CompanyThe trade union started the registration of representative candidates for the “SecondMeeting of Employee Representatives” on April 29 2020 and carried out the election on
May 7 2020 to elect 100 employee representatives and 27 representative candidates. During
the term of three years employee representatives exercise democratic management rights
and participate in the review of policies and rules involving employee interests. All regular
employees are qualified for the election.
1.5.2 Safeguarding the travel safety at night
We have enabled the Didi corporate version so that all employees may call for cars free of
charge by using the Didi corporate version; this solves the safety concerns of employees
after overtime work at night. To ensure equal benefits for employees driving to work the
Company negotiated with the property management company to provide employees leav-
ing at night with the benefit of free parking for the day.
1.5.3 Annual physical examination for all employees
We cooperate with physical examination institutions to provide all employees with health
physical examination. In 2020 the physical examination was postponed under the impact
of COVID-19. With the achievement in epidemic prevention throughout China the physical
examination of all employees is planned between the middle of December to the middle of
March 2021. All employees who have joined the Company for three months are qualified for
this benefit.
1.5.4 Free dinner
We provide free dinners for all employees. Employees may claim for a dinner ticket after 6:30
in the evening to take the free dinner at the designated dining hall with the ticket.
2. Customer benefits
2.1 Implement strict quality control to ensure quality output
We are committed to providing the customers with high-quality products through strict
quality control. Our production base has passed ISO9001 quality management system
certification. The contracts executed by us with the customers generally contain quality
assurance clauses pursuant to which we have the obligation to repair the products sold by
us that are found to have quality problems during the warranty period (which is 1-3 years
generally) free of charge.
2.2. Continuously optimize services to improve customer experi-
ence
Our service team implements the service idea of “customer foremost” and abides by the
national standard Evaluation System for After-sales Service of Commodity and our internal
after-sales service management requirements to carryout internal inspection and manage-
ment review constantly optimize the service procedure enhance monitoring and manage-
ment and continuously improve the service system. We safeguard the legitimate rights and
interests of the suppliers customers and consumers through the measures stated above.
2.3. Innovate the service mode to support customers in reducing
costs and improving efficiency
For the cinema projector market we took the lead in releasing “Laser as a Service” for
cinema laser light sources in the industry. The cinemas just need to pay rents according to
the length of use without needing to purchase light sources which will help the cinemas
not only effectively reduce equipment purchase costs labor costs and maintenance costs
but also improve their market competitiveness through the high luminance wide color
gamut high contrast and good picture quality and other technical advantages provided by
the laser light source of Appotronics.
2020 Social Responsibility Report Stakeholder Analysis
22 23
Appotronics Corporation Limited
3. Investor relationship
3.1 Embrace regulations and make compliant disclosure to re-
spond to concerns of shareholders
The Board Secretary of the Company is responsible for external information disclosure.The Company has designated Shanghai Securities News China Securities Journal Securi-
ties Times and Securities Daily as the newspaper and website for information disclosure.
During the reporting period we have always duly performed our obligation of information
disclosure in accordance with the Rules Governing the Listing of Stocks on the Sci-tech
Innovation Board of the Shanghai Stock Exchange the Guidelines on the Application of
Self-Regulation Rules for Companies Listed on the STAR Market No. 1 - Regulated Operation
and other applicable laws and regulations and our Information Disclosure Policy to ensure
that all shareholders and other stakeholders have equal access to the information of the
Company. In 2020 we disclosed 4 true accurate and complete regular reports; promptly
disclosed 147 interim announcements on the resolutions of the general meeting and use
of offering proceeds and voluntarily disclosed the English version of our regular reports
announcement on the recovery of the cinema business and social responsibility report. We
performed the information disclosure obligations in accordance with law to promptly notify
investors of significant operating updates of the Company and progress of major matters
hence protecting the legitimate rights of investors.
3.2 Innovate channels for communicating with investors to deliver
the investment value of the company from multiple perspectives
In 2020 we made 30+ roadshows in the form of strategy meetings with securities compa-
nies on-site reception at the Company teleconferences online Q&A etc. and communicat-
ed with 110+ buyer and seller institutions in over 240 person-times.
30+
30+ roadshows
110+
communicated with
110+ buyer and
seller institutions
240
person-times
for a total of 240
person-times
We held performance briefings via video or telephone for the annual report semiannual re-
port and third quarter report to build the bridge for communication between the manage-
ment of the Company and the capital market.We communicated with and answered the queries of 190+ investors via the investor hotline.We received 30+ queries in SSE E-Interaction and replied to all the queries. Meanwhile in
consideration of the video dissemination we opened a WeChat video account to deliver
performance interpretation business progress management interview and other updates
of the Company to investors more vividly.
3.3 Improve the profit distribution policy and enhance the mecha-
nism of returns to investors
The Company reviews the shareholder returns plan at least once every three years makes
appropriate and necessary amendments to its profit distribution policy and decides on the
shareholder returns plan for the giving period according to the opinions of the shareholders
(in particular holders of public shares) the independent directors and supervisors subject
to the applicable laws rules regulations and normative documents.
4. Government relationship
4.1 Good faith in operation
We insist on good faith in our operation. During the reporting period neither the Company
nor any director supervisor or senior officer was subject to investigation by a competent
authority enforcement by a judicial or disciplinary authority or transferred to judicial au-
thority or investigated for criminal liabilities.
4.2 Actively perform the duties as a corporate citizen
4.2.1 Compliant operation and tax payment
We abide by the relevant national laws and regulations operate in compliance with require-
ments obey the management of the local government accept the supervision of local regu-
latory authorities and strictly fulfill our obligations as a taxpayer.
4.2.2 Continuously promote employment
We strictly abide by relevant provisions of the Labor Law and the Labor Contract Law at-
tach importance to the protection of employee rights and interests follow the principles
of equality voluntariness and coordination to provide employees with equal employment
opportunities in accordance with law so as to establish a regulated and orderly mutually
beneficial harmonious and stable relationship to make our contributions for the national
objective of “stable employment”.
2020 Social Responsibility Report Stakeholder Analysis
24 25
Appotronics Corporation Limited
1. Performance pressure amid the epidemic
1.1 Positive trend despite the performance pressure
In 2020 our operating income was RMB 1.949 billion leading to the net profit attributable
to the Parent Company of RMB 114 million; the total assets of the Company at the end of
the reporting period was RMB 3.226 billion up by 4.09% from the beginning of the reporting
period; and the equity attributable to owners of the Parent Company was RMB 2.092 billion
up by 5.93% from the beginning of the reporting period.
06 Part VIEconomic Issues
On a quarterly basis our operating income was RMB 710 million in Q4 up by 13.25% year
on year; the net profit attributable to the Parent Company was RMB 69.7096 million up by
11.85% year on year and the net profit attributable to the Parent Company after deduction
of non-recurring profit or loss was RMB 52.1120 million up by 18.27% year on year. This re-
vealed accelerated recovery of the quarterly performance.
2020 Social Responsibility Report Economic Issues
26 27
Appotronics Corporation Limited
1.2 Continuously increasing R&D expenses
In 2020 we invested a total of RMB 204 million in R&D representing 10.49% of the operating
income achieved in 2020 and the continuous increase in R&D expenses.
ALPD? technology architecture has been upgraded to the fourth generation. The perfor-
mance of each generation of architecture platform has been improved in an all-round way
as compared to the previous generation thereby enabling us to maintain the technical and
performance advantages in the industry. We have a group of high-quality R&D personnel in-
cluding a lot of doctors graduated from famous domestic and foreign universities. Our R&D
team has taken the lead in the research of laser display technology in the industry.
1.3 “Constant” technical innovation
The ALPD? technology as the mainstream technology in the laser display industry has
promising prospect for continuous development. This is the first time for China to take the
lead in display technology. With the laser optical engine as the core upstream and down-
stream industrial chains are connected to create a new technology innovation layout in the
industry hence promoting technology advancement and development in the display in-
dustry. The increasing R&D investments guarantee a high technical barrier for the Company
to continuously lead the industry. In consideration of long-term development and meeting
the new demands for information display the Company established the AR Business Divi-
sion for AR layout to explore more hardcore drive technologies and achieved preliminary
development of ALPD5.0 and ALPD6.0 technologies for next-generation technology around
performance promotion and independent development of an image display chip.
1.4 Frequent release of new products
In 2020 we released the smart video and audio operating system Feng OS the new laser
household cinema D30 the world’s first 100-inch flexible Fresnel anti-light screen Fengmi
R&D investments in 2020
RMB 204443369.10 RMB 1948884176.83 of
total operating income
R&D ratio
10.49%
The world’s first 100-inch flexible Fresnel anti-light screen
Fengmi 4K Cinema Pro Laser TV 4K Max
FengOS smart video and audio operating system
New laser household cinema D30 Fengmi Vogue Pro
laser TV 4K Cinema pro laser micro projector vogue pro S series large venue projectors and many other new products en-
abling us to take the lead in the technology development of the industry.
2020 Social Responsibility Report Economic Issues
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Appotronics Corporation Limited
2. Intellectual property
2.1 Appotronics’s understanding of intellectual property rights
Innovation is the first driver for development while intellectual property rights are intended
to protect innovation. As a globally leading laser display technology enterprise with inno-
vative technologies core patents and capability of developing and manufacturing coredevices Appotronics has always persisted on the strategic development idea of “technolo-gy-oriented corporate development” since its establishment in 2006 and practiced the un-derstanding of “innovation is the first driver for development while intellectual propertyrights are intended to protect innovation” by focusing on R&D innovation and protection
of intellectual property rights.
2.2 Establishment of the intellectual property team
Appotronics has always attached great attention to R&D and intellectual property rights. It
has established the Intellectual Property Rights and Legal Department to support the R&D
system. The department is responsible for patent application protection of intellectual
property rights and tracking of technology development trends so as to transform the R&D
achievements of the Company into an intellectual property barrier and protect the intellec-
tual property rights of the Company from infringement.
2.3 Main measures for the protection of intellectual property rights
2.3.1 Establish and improve the system of intellectual property rules
We have established measures intended for intellectual property rights including the Mea-
sures of Patent Management Measures for the Assessment of Patent Applications Measures
of Trademark Management etc. to guarantee scientific management reasonable alloca-
tion of duties and smooth implementation for the intellectual property department.
2.3.2 Implement global patent layout
Through the global patent layout we proactively safeguarded our rights in patents and ex-
plored patent-based ecology operation modes to seek and realize our patent value. On one
hand we protected our investment in R&D by safeguarding our rights in patents; on the oth-
er hand we realized product innovation through constant technical upgrade which result
in new patents in an attempt to maintain the high profit margin of core devices support the
sustainable development of intensive and high-amount investment in R&D innovation and
drive the development of the entire industry by our leading core devices.
2.4 Promote the development of the industry
Based on technology innovation and intellectual property rights Appotronics is commit-
ted to applying its core patented technologies to various scenarios and taking the lead in
achieving industrialization of laser display technologies. From the laser projection halls at
cinemas to laser household cinemas from business education laser projectors for class-
rooms and meeting rooms to large venue laser projectors the technical innovation achieve-
ments of our advanced laser display technology are benefiting all the public.
Based on technology innovation and intellectual property rights Appotronics is open for
cooperation with partners and focuses on dual-drivers of “core devices + core patents” in
exploration of the operation mode of intellectual property rights.
2.5 Take lead in the industry
As of December 31 2020 Appotronics has over 2000 patents granted and filed around the
world ranking the first in the field of phosphor laser display; its patent for the core funda-
mental architecture has been directly cited over 600 times by globally well-known enterprises.
2020 Social Responsibility Report Economic Issues
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Appotronics Corporation Limited
07 Part VIIEnvironment Issues
1. Concept of sustainable development
To promote energy saving improve energy utilization reduce operating costs while improv-
ing economic efficiency and create green products and services for society under the man-
agement ideas of energy saving environment protection green and low carbon. We active-
ly responded to relevant laws and regulations and the call for energy saving and emission
reduction by formulating the Energy and Resources Control Procedure Environment and
Substance Control Procedure and Waste Disposal Control Procedure and implementing
energy-saving and emission-reducing measures at various production stages to reduce our
energy consumption and improve the value per unit of energy consumption.
2. Energy-saving and environmentally friendly
products
2.1 Environmental-friendly production process
We continuously implemented the ISO 14001 environment management system and imple-
mented strict environment protection requirements for all production stages and the over-
all supply chain with a focus on environment protection. In 2020 our environment manage-
ment system passed the certification by China Quality Certification Center consecutively.Item 2019 2020 % Growth
Production volume 115400 sets 150800 sets 31%
Production hours 799000 hours 678000 hours -15%
About 158000 hours were saved in 2020 on the production lines under equivalent produc-
tion volumes compared with 2019
At all stages including product designing material procurement and manufacturing
process we fully implemented the idea of green and environment protection to enhance
control over hazardous substances and continuously implemented the IEC QC080000 haz-
ardous material control system so as to achieve international standards in all-round green
designing green procurement and green manufacturing.
2020 Social Responsibility Report Environment Issues
During production Appotronics constantly makes improvement for “energy saving andemission reduction”. We have independently developed and implemented the waste water
recovery and reuse system implemented the project for central air-conditioning system air
compressors and UV purifier systems project for product ageing and energy consumption
reduction and project for energy saving on production equipment to minimize the con-
sumption of energy and impact on the environment.
2.2 Constantly optimize main production processes
With great attention paid to the improvement of efficiency for the supply chain we have
optimized all production processes including investing in the smart line consisting of auto-
matic equipment with a larger scale which lead to an increase by 31% in production while a
decrease by 15% in production hours in 2020.
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Appotronics Corporation Limited
2.3 The new supply chain base is officially put into operation
The Changzhou factory was officially put into operation in 2020. This will greatly support the development of the Company
in all business fields especially in the production of whole laser cinema projectors (such as C5 laser cinema projectors) and
the production capacity of household products (such as flexible screen products released in 2020). The production efficien-
cy and capacity will be greatly improved.
3. Energy consumption and key environment indicators in 2020
In 2020 we reduced the average water consumption per device by 35.2% and average electricity consumption by 22.5%
year on year.Volume
(0000 sets)
Water consumption
(ton)
Electricity consumption
(kWh)
Average water
consumption
(ton/set)
Average
electricity
consumption
(kWh/set)
Year 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020
Quantity 11.50 15.08 22368.0 19012.0 4045752.0 4111249.0 0.19 0.13 35.18 27.26
Decrease in average water consumption
per device in 2020 35.2%
Improve efficiency reduce working hours optimize the
cleaning process and recycle waste water
Decrease in average electricity
consumption per device in 2020 22.5%
Improve efficiency reduce working hours optimize the ageing
process and reduce ageing energy consumption of products;
optimize and air-conditioning and energy saving system
No. Item Objective Actual Achievement
Complaint on environment pro-
tection by external parties
0 0 Achieved
Reduce the average electricity
consumption per device
Over 20% 22.5% Achieved
Reduce the average water con-
sumption per device
Over 20% 35.2% Achieved
4 Total volume of hazardous waste Less than 2 tons 1.005 tons Achieved
5
Certification of the environment
protection system
100% 100% Achieved
Energy and resources use/consumption in 2020
Key environment indicators in 2020
2020 Social Responsibility Report Environment Issues
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Appotronics Corporation Limited
1. Healthcare for employees in prevention of
COVID-19
The year 2020 witnessed the break of the epidemic. At the beginning of COVID-19 we made
quick judgement to establish the “Epidemic-fighting Panel” to implement preventive
measures such as environment sterilization issuance of facial masks etc. We implemented
comprehensive control and prevention measures on an ongoing basis as normal activities
so as to provide employees with prevention instructions materials and mental care to
safeguard the health and lives of all employees. None of our employees were verified or
suspected of being infected in 2020.
2. Take the lead in resume production to facilitate
economy recovery
08 Part VIIISocial Issues
With a series of prevention measures and preparation made Appotronics duly resumed
production on February 10 as one of the first high-tech enterprises resuming production in
Shenzhen hence setting an exemplary role in resuming production and promoting econo-
my recovery with safety guaranteed. On March 3 2020 European Pressphoto Agency (EPA)
took a picture of Appotronics’s cinema product shop depicting our employees inspecting
products carefully with text description. After being forwarded by Wall Street Journal the
Guardian Bajapress Shutters Stock The Top 10 News and other authoritative media this
picture was widely disseminated in the western world as the “Chinese power” amid the
epidemic.
2020 Social Responsibility Report Social Issues
3. Donate materials to empower scientific epidemic
prevention and controlling
After the occurrence of the epidemic we immediately offered our support to the front line
by providing large laser display screens to Shenzhen Disease Control Center to facilitate
visualization of medical data hence offering our help in releasing epidemic information
patient diagnosis and tracking of suspected patients and traces in real time and in video
conferences with governments at various levels and medical institutions.Meanwhile we donated customized laser smart projectors equipped with keyboards and
mouse for interaction to medical teams went to Wuhan. Such mobile portable high-defi-
nition and high-brightness smart mini projectors adopt the principle of reflection display
hence generating no direct lights to eyes and no blue lights to avoid visual fatigue after
viewing for a long period of time. During the period of preventing and controlling the epi-
demic smart mini projectors may be used as auxiliary devices for online education to help
children of those went to Wuhan take “online lessons” in a safe way solving the concerns
of the medical staff so that they may focus on fighting COVID-19 without worrying about
their home.
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Appotronics Corporation Limited 2020 Social Responsibility Report Social Issues
4. Care eyes with laser display to protect the vision of teenagers
At the beginning of 2020 student learning never stopped despite the shut down of schools. Parents were worried about the
eyes of children since children had to take lessons using display screens. The People’s Daily Health Times and many oph-
thalmology professions and education experts advocated high-definition projector for taking online lessons and recom-
mended in order projectors liquid crystal TVs and LED displays. Fengmi a subsidiary of Appotronics intensified efforts on
smart mini projector products to release Fengmi projector Smart pro Vogue pro and other products. Such products have
the features of reflection light and diffuse reflection for eyes hence protecting teenagers from blue light damages from mo-
bile phones tablet computers liquid crystal display screens helping children take lessons effectively while caring for eyes.
Care for eyes with
laser
Diffuse reflection of
natural light
Care for eyes
Effective vision
protection
Interactive tablet Appotronics laser projection
5. Innovate application scenarios for laser display to care about the
mental health of children
In 2020 Appotronics cooperated with Shenzhen Children’s Hospital to build a creative anesthesia induction room with la-
ser display technologies. The integrated solution created a virtual 3D dynamic space for children to achieve the natural and
immersive effects hence realizing “no physical pain” and “no mental hurt” in children anesthesia. Children may be ac-
companied by their parents through a “underwater world” before entering the operating room and go into sleep step by
step. Such drugless anesthesia induction effectively relieves the anxiety of children to protect their mental health.In November 2020 National Business Daily released the 10th ranking of Chinese listed
companies covering companies listed on Chinese mainland Hong Kong and US stockmarkets. Appotronics distinguished itself as the “Most Socially Responsible Listed
Company” on the ranking of Chinese listed companies. Moreover at the Second So-
cial Responsibility Forum of Shenzhen Enterprises & Award Ceremony sponsored by
Nanfang Daily Appotronics was granted the “Award of Social Responsibility”.
6. Establish a system to support social welfare as normal activities
The Company made plans for public welfare and key fields of support with reference to its strategic objectives and the ac-
tual demands for social development. We make the plan and budget for social welfare activities every year which activities
will be implemented and organized by the trade union and the Human Resources Department respectively. Based on its
development direction and strategic priorities the Company has specified the direction for offering support of social wel-
fare to support industry development environment protection education grants charity donation and employee care.
7. Be awarded as the “Most Socially Responsible Listed Company”
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Appotronics Corporation Limited
1. Corporate governance structure
The Company strictly abided by laws and regulations including the Company Law and the
Securities Law and requirements of the Code of Corporate Governance for Listed Compa-
nies to continuously improve corporate governance and improve measures for the general
meeting Board of Directors and Board of Supervisors. A legal person governance structure
featuring specific allocation of duties and obligations effective check scientific decision
making and coordinated implementation among the authority body the decision-making
body the supervision body and operation and management staff.
09 Part IXCorporate Governance
2020 Social Responsibility Report Corporate Governance
2. General meeting board of directors and board
of supervisors
In 2020 the Company strictly abided by the requirements of the Company Law the Securi-
ties Law and the Code of Corporate Governance for Listed Companies to improve the legal
person governance structure regulates its operation activities actively implement internal
control set up and improve internal control measures and enhance information disclosure
so as to safeguard the interests of the Company and all shareholders. The general meeting
Board of Directors Board of Supervisors board committees and management all diligently
fulfilled their duties in accordance with laws and regulations to promote the secure stable
healthy and continuous development of the Company. The actual operation of the Com-
pany was in compliance with the requirements on the governance of listed companies re-
leased by China Securities Regulatory Commission (CSRC).
In 2020 the Company convened 4 general meetings 8 meetings of the Board of Directors
6 meetings of the Board of Supervisors and 10 meetings of board committees covering the
matters on investment in and financing for subsidiaries related-party transactions profit
distribution management of offering proceeds and regular reporting.
2.1 About shareholders and the general meeting
The general meetings were convened and held in compliance with relevant rules in the Ar-
ticles of Association Procedural Rules of General Meetings and Implementation Measures
for Online Voting at General Meetings. In 2020 the Company convened 4 general meetings
including 1 annual general meeting and 3 extraordinary general meetings all of which were
voted by combining on-site voting and online voting. The procedures for convening hold-
ing and decision making at the general meetings were in compliance with the provisions of
relevant laws and regulations including the Company Law and the Articles of Association.This guaranteed equal voting rights for all shareholders of the Company especially small-
and medium-sized shareholders to fully exercise their voting rights. At the 4 general meet-
ings all proposals raised were reviewed and passed. The procedures for convening and
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Appotronics Corporation Limited
holding the general meetings were in compliance with regulations and witnessed by law-
yers on site who have issued legal opinions to certify the legality and validity of the resolu-
tions at such general meetings. The Board of Directors promptly disclosed announcements
on the resolutions at relevant general meetings.
2.2 Directors and the Board of Directors
The Company strictly abided by the provisions of the Company Law and the Articles of As-
sociation in the election of 7 directors for the Board of Directors. Meanwhile in accordance
with relevant provisions the Company has three independent directors including one fi-
nancial professional one economic management professional and one legal professional.The Board of Directors has the Audit Committee the Compensation and Performance As-
sessment Committee the Strategy Committee and the Nomination Committee. The num-
ber of members for the Board of Directors and board committees are in compliance with
the requirements in relevant laws and regulations and are sufficient to make scientific deci-
sions on the production operation and major matters of the Company. All directors abided
by the Rules of Procedure of the Board of Directors and other rules to diligent attend board
meetings and general meetings actively participated in the director and supervisor train-
ings held by CSRC Shanghai Office familiarized themselves with relevant laws and regula-
tions to learn about their rights obligations and responsibilities as a director. In 2020 the
Company held 8 board meetings including 6 teleconferences and 2 meetings combining
teleconference and on-site attendance. All directors attended the meetings diligently with
no absence and fully played their roles to provide professional and constructive sugges-
tions and comments on major decisions of the Company and carefully instructed the work
of the management to safeguard the legitimate rights and interests of the Company and all
shareholders.
2.3 Supervisors and the Board of Supervisors
The Board of Supervisors of the Company consists of three supervisors including one em-
ployee supervisor. The number of members and composition of the Board of Supervisors
are in compliance with the requirements in relevant laws and regulations. The Board of
Supervisors strictly abided by the Articles of Association and the Rules of Procedure of the
Board of Supervisors in convening and holding meetings of the Board of Supervisors. In
2020 the Company held 6 meetings of the Board of Supervisors. All supervisors diligently
fulfilled their duties in a manner responsible to shareholders performed legality and com-
pliance check on the performance of directors managers and other senior officers and on
financial matters of the Company hence fully safeguarding the legitimate rights and inter-
ests of the Company and shareholders in a manner responsible to the general meetings.
3. Internal control
With internal control Appotronics intends to reasonably ensure the legality and compliance
in its operation and management safety of assets truthfulness and completeness of finan-
cial reports and relevant information to improve operating efficiency and effects and pro-
mote the implementation of its development strategy. To achieve the objectives of internal
control Appotronics designed and implemented an internal control system based on its or-
ganizational structure and operation mode. The system being designed based on the COSO
model covers the control environment risk assessment control activities information and
communication and monitoring and covers the internal control system for financial reports
to ensure the truthfulness completeness and accuracy of financial reports.
2020 Social Responsibility Report Corporate Governance
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Appotronics Corporation Limited 2020 Social Responsibility Report Corporate Governance
3.1 Control environment
The Company strictly abided by the Company Law the Securities Law and other laws
regulations and normative documents to establish a regulated organization structure. We
have defined specific duties and responsibilities for the general meeting board of directors
board of supervisors and independent directors and established the Strategy Committee
Nomination Committee Compensation and Performance Assessment Committee and
Audit Committee under the board of directors. The Audit Department a permanent body
under the Audit Committee carries out internal business audit and supervision in an inde-
pendent and objective manner under the leadership of the Audit Committee and keeps in
routine communication with the Audit Committee to promptly report audit and regulatory
information to the board of directors and ensure the effective operation of internal control
of the Company.
3.2 Risk assessment
The Board of Directors of the Company has a Strategy Committee responsible for making
risk assessment and control on overall operating risks strategic development risks and
risks in major investments. With the coordination from various departments the committee
collects and studies information about external risk factors including the economic condi-
tion industry policy market competition and supply of resources and internal risk factors
including the financial conditions capital availability assets management and operation
management and identifies and assesses the risks by applying both qualitative and quanti-
tative methods to provide a basis for the management to respond to such risks.
3.3 Information and communication
The Company is committed to establishing a management system for information security
by formulating a series of information security guidelines policies and measures to safe-
guard the security of information assets of the Company. This system is intended to im-
prove the decision making and operation by the management by employing information-
ization means optimizing information process and integrating the information system. The
Company attaches attention to communication and dialogue with stakeholders to listen to
the comments concerns and suggestions of stakeholders on the sustainable development
of the Company and employs a transparent communication mechanism and unified infor-
mationization platform to properly incorporate the suggestions and requirements of stake-
holders into the formulation and implementation of the Company’s policies strategies
and plans hence establishing a healthy friendly mutually beneficial cooperative and win-
win relationship with stakeholders.
3.4 Internal monitoring
Under the leadership of the Audit Committee the Audit Department has objectively as-
sessed and identified the internal control risks of the Company and led the fixation of re-
sponsibilities and close-loop improvement in respect of the problems with internal control
to give support to the building of business and honest environment in the Company pro-
vide guidance to business management in respect of risk control improve their capability to
proactively identify and manage business risks and promote effective growth of the Com-
pany.
3.5 Anti-corruption by system
The Company has released the Anti-fraud Measures and Measures for Preventing Conflict
of Interest and entered into Partner Integrity Agreements with partners to establish an in-
tegrity environment both inside and outside the Company. The internal report channel in-
vestigation mechanism anti-corruption mechanism and accountability mechanism further
support the implementation of internal monitoring activities.
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Appotronics Corporation Limited
Given the unprecedented changes in the previous hundred years of the world China has
entered a new era with a new role to play in the global system of climate management. The
Chinese government attached great importance to climate change persistently and actively
implemented the national strategy in response to climate change hence becoming a par-
ticipant contributor and leader in building the global ecology civilization.
At the 75th session of the United Nations General Assembly in 2020 China committed to the
world to reach the carbon emission peak by 2030 and achieve carbon neutrality by 2060. In the
report on the work of the government submitted to the National People’s Congress and the
Chinese People’s Political Consultative Conference held in 2021 it was proposed to carry out
solid tasks to reach the objective of carbon emission peak and carbon neutrality.
As a corporate citizen Appotronics has taken active measures in contribution to low-carbon
society and cooperated with customers and partners to implement sustainable measures
along the entire industry chain and the whole service of our products and solutions hence
creating value for all stakeholders by balancing the demands for society environment and
economy empowering low-carbon society protecting natural resources and promoting
the development of society. The specific measures planned include:
1. Fulfill corporate environment responsibility to
contribute to carbon neutrality
On one hand as a green industry featuring lower energy consumption less pollution and
higher energy efficiency in essence the technology industry matches with the pursuit of
ecology and environment protection in the post-industrial civilization. On the other hand
technology enterprises can employ their strong innovative capabilities to make use of cut-
ting-edge technologies to transform the mode of energy utilization and reform the industri-
al chain and system hence reducing carbon emission during industrial production.
10 Part XSustainable Development Plan
Appotronics will continuously take active measures to save energy and reduce energy con-
sumption in strict compliance with laws and regulations related to energy; provide sufficient
information and necessary resources to implement full-functional whole-process all-round
and whole-life energy management optimize energy designing implement requirements
on energy saving so as to ensure the orderly electricity consumption and economic opera-
tion of equipment and constantly improve energy efficiency. We will implement production
in an environmental friendly manner with scientific management and innovative designing
to make Appotronics into an “energy-saving and environmental friendly” high-technolo-gy enterprise hence making our contribution to the national objective of “carbon neutrali-ty” with our practices.
2. Take lead in healthy development by making
innovation
Appotronics will actively fulfil its social responsibilities to implement the idea of sustainable
development and scientific development fully care about the mutual benefits of all stake-
holders including employees creditors customers consumers and the community while
working for the economic interests of the Company and all shareholders so as to promote
the sustainable development of society and economy.
2.1 Innovate application scenarios for laser display to create
a better life
At present our ALPD? technology has certain demonstration effect in the field of laser dis-
play and its application covers professional market and mass market and high-end market
and low-end market. Our multiple product series can satisfy the demands of various scenar-
ios. In addition we have adopted the differential development strategy and upgraded ALPD?
technology from multiple angles to satisfy the demands of different market segments and
applications. In the future we will continuously release disruptive innovation and more newproducts to expand the application scenarios for laser display hence truly achieving “bettertechnology better life”.
2.2 Enhance the building of marketing system and improve
profitability
The Company will based on the current marketing system give full play to the advantages
of the multi-level and all-round marketing mode combining online sales with off-line sales
agent mode with direct sale mode and sales on the domestic market with exploitation of
overseas market to expand the market layout and continuously optimize the sales service
system and enhance brand influence relying on the advantages of technologies and prod-
2020 Social Responsibility Report Sustainable Development Plan
46 47
Appotronics Corporation Limited
ucts to realize synchronous and sound development of the base and quality of customers.In addition the Company will actively cultivate and develop overseas market promote its
laser display products with proprietary IP in the world based on its leading technologies
and outstanding products and giving full play to the synergy effect with its strategic part-
ners to realize the continuous growth of sales and improvement of profitability.
2.3 Enhance internal controls and team building of talents to
promote healthy development
The Company has established relatively sound internal controls and management system
and will continue to improve its management and operation level revise and improve in-
ternal controls control management and operating risks and ensure the continuous and
effective implementation of internal controls. In addition the Company will enhance the
building of IT system and budget management control costs and expenses meticulously
improve the use efficiency of funds and realize reduction of costs and improvement of
efficiency. The Company will also continuously improve the compensation and incentive
mechanisms recruit outstanding talents motivate the employees to the maximum ex-
tent and give full play to the employees’ creative power and maximize their potentials.Through such measures the Company will improve its management and operational effi-
ciency in an all-round way and realize long-term steady and healthy development.
3. Pursue a better Appotronics
For the future either as a public company with stable and good development or a compli-
ant corporate citizen Appotronics is capable of taking more social responsibilities and tak-
ing more opportunities to implement valuable ideas. For the future we persist on providing
more growth opportunities for every employee to achieve their personal value; for the fu-
ture Appotronics will take opportunity to create more value for society and to create a bet-
ter future for people with disruptive innovation based on technology and business model.
2020 Social Responsibility Report Sustainable Development Plan
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Appotronics Corporation Limited
2020 Social Responsibility Report of
APPOTRONICS