Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
About this Report
Overview Basis for Preparation Abbreviations
This is the 4th environmental social and governance (ESG) report * Sustainable Development Goals (SDGs) Corporate Action Guidelines * Xiamen Solex High-tech Industries Co. Ltd. (“Solex” or the
publicly released by Xiamen Solex High-tech Industries Co. Ltd. This * Sustainability Reporting Standards (GRI Standards) from Global “Company”);
Report discloses the practices and performance of Xiamen Solex High- Reporting Initiative
tech Industries Co. Ltd. in economy environment society corporate * Zhangzhou Solex Smart Home Co. Ltd. (“Zhangzhou Solex”);
* Guidelines for Compiling Corporate Social Responsibility Reports in
governance and other responsibility fields in 2023. With this Report from Chinese Academy of Social Sciences (CASS-CSR5.0) * Bestter (Xiamen) Technology Inc. (“Bestter”).China
we want to communicate with stakeholders and to respond to their
expectations and demands in a systematic manner. * Guidelines for Compilation of Social Responsibility Reports from
China’s National Standards (GB/T36001-2015)
* ISO 26000: Guidance on Social Responsibility (2010) from International
Organization for Standardization
* Guidelines on the Self-Regulation Rules for Companies Listed on
Shanghai Stock Exchange No. 1 - Compliant Operation from Shanghai
Stock Exchange
Reporting Period Source of Data Report Access
The reporting period is from January 1 2023 to December 31 2023 The data used in this Report includes the original data on actual You can download the electronic version of this Report on the official
and extends beyond the foregoing scope for some content to enhance operations of the Company pubic data published by government website of Shanghai Stock Exchange (http://www.sse.com.cn) or
the comparability and forward-looking of this Report. authorities annual financial data relevant internal statistics reports Xiamen Solex High-tech Industries Co. Ltd. (http://www.solex.cn/
third-party questionnaires and third-party evaluation interviews notice.html) for more information about the Company.etc. The financial data in this Report are in RMB. In case of any
inconsistency with the financial report the financial report shall prevail.
3Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Message from the Chairman“In 2023 the recovery trend was seen in global economy governance and operational level; emphasizing participates in various social welfare activities and gives
but the growth momentum was waning. Overall demand innovation and creativity increasing R&D investment back to the society and benefits the people with practical
in export markets declined and recovery was at a slow promoting the transformation of scientif ic and actions contributing to a harmonious society.pace. However the China’s economy is staging a steady technological achievements driving technological
recovery. Against the backdrop of complex and severe innovation enhancing market recognition reducing Solex always pays attention to the impact of environmental
macroeconomic environments and unexpected factors market and operational risks in the new development protection social responsibility corporate governance
both at home and abroad the Company made concerted pattern; implementing responsible procurement etc. and devotes itself to achieving its own long-term and
effort to actively respond to the uncertainties and strengthening customer relationship management; stable growth. Practicing ESG is an important measure
challenges in the economic environments and markets safeguarding employee rights valuing employee growth for the Company to pursue the concept of sustainableand deepen the strategy of the “IDM Hardware Invisible paying attention to green environmental protection development. This effort is not only necessary forChampion Incubation Platform”. By empowering product deploying green development models based on its own “going out” but also promotes the implementation of the
values with intelligence health and green the Company characteristics integrating the concept of green low- localization strategies and gains competitive advantages
focuses on the R&D design and intelligent manufacturing carbon into the entire production management process of long-term development in this process. Further the
of IDM hardware products in such categories as kitchen from green supply gain management to green factory Company strongly believes in the power of technological
& bathroom and health beauty and health and emerging and enhancing employees’ awareness of environmental innovation maintains the entrepreneurial spirit and
smart health hardware with a view to building a platform- protection by promoting green packaging and green increases the pace of becoming stronger contributing
based company. office. to the improvement of human life quality sustainable
economic and social development.Solex is committed to integrating the concept of The Company fully implements the national strategy of
environmental protection social responsibility and strengthening the country through quality improvement
corporate governance (ESG) into its production and and spares no effort to promote its high-quality
operation management optimizing its own business development. Also it fulfills corporate social responsibility
and development strategies improving its corporate with a high sense of responsibility and mission actively
4“Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities forand Stable Development Society the Green Earth Postscription
About Solex
Founded in 2004 Xiamen Solex High-tech Industries Co. Ltd. insists on
integrating R&D innovation and industrial design into products with the Solex Technology Co. Ltd.“IDM Hardware Invisible Champion Incubation Platform” as its compass
and capitalizing on its excellent technological innovation product Subsidiaries
development and user demand mastery capabilities. With the concept
of model manufacturing and technology sharing and by empowering
product values with intelligence health and green attributes it focuses on
the R&D design and intelligent manufacturing of IDM hardware products Zhangzhou Solex Smart Bestter (Xiamen) Solex High-tech Industries
in such categories as kitchen & bathroom and health beauty and health Home Co. Ltd. Technology Inc. (Hong Kong) Limited
and emerging smart health hardware. It aims to enhance the coverage of
products in market segments and spares no effort to provide high-value-
added IDM hardware products with “innovation design and manufacture”
for professional well-known brands large chain retailers and brand Solex Italy S.p.a
e-commerce players around the world.Note: (IDM stands for Innovation (original technology creation) Design (art design) and Manufacture (digital intelligent manufacturing) respectively)
Kitchen & Bathroom and Health Beauty and Health Emerging Intelligent Health
* Shower * SPA Beauty Shower Head
* Shower System * Facial Care
* Faucet * Water Flosser * Smart Fitness System
* Smart Toilet * Hair Care Device * Smart Sleep Monitoring System
* Smart Bathroom Cabinet * Smart Skin Analyzer
5Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Product matrix
Kitchen & Bathroom
and Health Shower Shower System Faucet Smart Toilet Smart Bathroom Cabinet
Beauty and Health
SPA Beauty Shower Facial Care Water Flosser Hair Care Device Smart Skin Analyzer
Emerging Intelligent
Health
Smart Fitness System Smart Sleep Monitoring System
6Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Historical Development
19952004200620082010
Founded in Xiamen Solex High-tech Solex Science and Technology Park Established the Italian Design Sanitary Park was completed
Xiamen Industries Co. Ltd. was was completed establishing the base Center combining international establishing an advanced faucet
established for shower and hoses with the national design concepts with an efficient hardware production base in China
leading production scale covering an area design team covering an area of approx. 23590
of approx. 39997 square meters and square meters and specializing in
specializing in the production of plastic the production of hardware products
products with a focus on shower with a focus on faucets
202220212020201920162013
Publicly offered Acquired “Bestter” Phase I of Changtai Solex (Stock Code: Planned to invest RMB Solex laboratory
convertible to expand kitchen & Intelligent Park was 603992) was 2 billion to establish was certified by the
corporate bonds in bathroom and health completed and put successfully listed on Zhangzhou Changtai Canadian Standards
the amount of RMB products into use the SSE for A-share Intelligent Park Association (CAS)
610 million IPO covering an area of 531 and the China
mu (Chinese unit of National Accreditation
area) Service for Conformity
Assessment (CNAS)
7Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Corporate culture Development Strategy
The Company emphasizes fostering the corporate culture and values with Solex characteristics always By upholding the IDM Hardware Platform strategy and with innovation and creation at the core the
“believes in the power of technological innovation” and keeps pursuing excellent performance. With the Company insists on the IDM model and deeply explores the human health life demand to provide
mission of “creating a better health life for the people through continuous innovation” it actively fulfills its B-end customers with smart healthy and green hardware product solutions. In addition with the idea
social responsibilities establishes a positive and good corporate image gathers wisdom and strength of technology sharing it lays out various segmented categories around the underlying logic to enhancefrom all sides and strives to realize the vision of “maintaining a single world champion and becoming a product value.leader in health hardware”.Create a better health life for
the people through continuous
Mission innovation
Ma in ta i n a s i ng le wo r l d
Vision champion and become a
leader in health hardware
Core Value Be l i eve i n t he power o f
technological innovation
8Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Major Honors
China’s Service-oriented Manufacturing Won the title of National Green Factory
Demonstration Enterprise National Industrial Design Center
National Enterprise Technology Center
National High and New Technology Won the Corporate Nodes of National Industrial Top 100 Strategic Emerging Enterprises in Top 100 Private Manufacturing
Enterprise Internet Identification Analysis System Fujian in 2023 Enterprises in Fujian
9Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Major Honors
Top 100 Private Innovative Elite Team of Foreign Trade Top 100 Xiamen Private Top 20 Xiamen Private Technology Top 20 Xiamen Private
Enterprises in Fujian Enterprises in Fujian Enterprises Innovation Enterprises Manufacturing Enterprise
Joined Xiamen Medical Device
Top 10 Xiamen Green Enterprises Association Top 100 Xiamen Enterprise Top 10 Xiamen IP Enterprises Industrial Leader in Zhangzhou
10Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
ESG Management
Stakeholder Analysis
With great importance to communication and exchanges with internal and external stakeholders Solex identifies shareholders governmental authorities customers employees partners communities and the public as its
stakeholders communicates with stakeholders through various channels to understand their demands and expectations respond to them and promote the continuous improvement of ESG management.Stakeholders
Shareholders Governmental Authorities and Regulators Customers Employees Partners Communities and Public
* Intellectual Property Protection * Product R&D and * Green Products * Employee Salaries and Benefits* Business Ethics and Anti-corruption * Industry-university-
Expectations and * Risk Control and Compliance Innovation * Data Security and * Employee Training and * Environmental Management* Clean Technology and Opportunities research Cooperation
Demands * Globalization Strategy * Product Quality Privacy Protection Development * Green Office* Toxic Emissions and Wastes * Responsible Procurement
* Investor Protection Management * Energy Saving and * Occupational Health and Safety
* Customer Services Emission Reduction
* Intellectual Property Protection
Mechanism * Protection of Employee Rights
* Compliance with Laws and * Integrity in Operation * Technology * Green Product Design and Interests
Regulations * Clean Technology Development Innovation * Data Security and * Sound Remuneration System
* Cooperation with Regulatory * Sound Risk Management * Quality Assurance Privacy Protection
* Industry Discussions and
Communication * Unobstructed Promotion * Environmental Management
Inspection * Sound Environmental Safety System * Handling of Customer * Energy-saving
Exchanges
Channels Rules and Systems
and Response Feedback Technology * Sustainable Supply Chain * Globalization Layout * Diverse Training Systems * Green Office
* Regular and Temporary * Customer Improvement
Management
* Rich Employee Activities
Information Disclosure Satisfaction Survey * Construction of Health and Safety
* Unobstructed Investor systems
Communication Channels
11Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Matrix of Material Topics
To gain a deeper and more accurate understanding of the expectations and demands of stakeholders and Matrix of material topics
to enhance the professionalism relevance and substance of this Report the Company invited employees
suppliers service providers customers investors governmental authorities regulators and other stakeholders
through questionnaires to select and analyze 20 material topics related to the Company’s environment High
society and governance directing and laying the foundation for the construction of the Company’s sustainable
development systems.Product Quality
Management
Identification and Selection Stakeholder Surveys Comprehensive Analysis of of Topics Results Data Security and Privacy Product R&D and Innovation
Protection
Customer Services
Energy Saving and
Emission Reduction Employee Training Employee Salaries
and Development and Benefits
Occupational Health Responsible Green Products
and Safety Procurement
Intellectual Property
* Identify material topics that * Communicate with the internal * Conduct a statistical analysis Protection Toxic Emissions and Wastes
Business Ethics and Anti- Investor Protection
have significant impact on and external stakeholders of the topic scores based corruption
Industry-university-
the Company’s growth and of the Company by ways of on the survey results adjust Risk Control and research Cooperation Compliance
s takeho lde rs acco rd ing online questionnaires. mateiral topics with reference Clean Technology and Opportunities
t o t h e n a t i o n a l m a c r o - * 2023 stakeholder surveys to internal management and Environmental
Globalization Management
policy orientation domestic cover employees customers external expert opinions Strategy
and in te rna t iona l soc ia l investors suppliers partners confirm importance rankings
responsibility standard study communities the public and form a matrix of material
Green Office
with reference to annual hot other related groups. topics and respond to topics
topics industry trends and of concern to stakeholders in
rating concerns and based this Report.on the actual development of
the Company.Low Importance to Enterprise Development High
12
Importance to StakeholdersXiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Efficient and Regulated Governance General Meeting of Shareholders
In strict accordance with the requirements of the Companies Law Securities Law Code of Corporate Governance for Listed Companies The Company ensures that the general meeting of shareholders
Rules Governing the Listing of Stocks on Shanghai Stock Exchange and other laws and regulations the Company has established its can exercise its rights in accordance with law and operate in
sound internal control system regulated its operations and enhanced corporate governance so as to ensure that the corporate governance an efficient and regulated manner and make scientific decision-
structure is legal and compliant and operates stably. During the reporting period the convening and voting procedures of all meetings of the making. In strict accordance with the provisions and requirements of
Company complied with the relevant requirements of the laws and regulations and of the Articles of Association and rules of procedure and the Code of Corporate Governance for Listed Companies Articles
all voting results were legal and valid laying a solid foundation for the compliant operations of the Company. of Association and Rules of Procedure for the General Meeting of
Shareholders the Company convened and held general meetings
Organization chart of the Company of shareholders and engaged lawyers to witness general meetings.Shareholders attended general meetings of shareholders and had
General Meeting of the rights to be informed speak inquire and vote at such meetings
Shareholders in accordance with law.Strategy Committee
Board of
Supervisors During the reporting period
Nomination Committee
Securities Affairs Secretary of Board Board of Directors Remuneration and
the Company held a total of
Department of Directors Appraisal Committee
Audit Committee Audit Department 5 general meetings of shareholders
General Manager
including
1 annual general meeting
Administrative HR Environmental Equipment
Product
Category Innovation
extraordinary general meetings
Management Procurement Finance IT CenterCenter Department Center Center Business
Design Center
Unit Center 4
14Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Board of Directors
In accordance with the relevant laws and regulations the Company has
formulated the Rules of Procedure for the Board of Directors specified
legal person governance structure and regulated the mode of the meeting * Guide and supervise the establishment and implementation of internal audit systems
and decision-making procedures of the Board of Directors urges the * Review the annual internal audit work plans of the Company
directors and the Board of Directors to effectively perform their duties
and improves the regulated operation and scientific decision-making level * Supervise and urge the implementation of the internal audit plans of the Company
of the Board of Directors. Independent directors of the Company are all * Guide the effective operation of the Audit Department
senior professionals with expertise in law risk management accounting * Report to the Board of Directors on the progress and quality of internal audits as well as significant issues identified in
finance industry-related technology and business management etc. internal audits
Four special committees are established under the Board of Directors Audit Committee * Coordinate the relationship between the Audit Department and external audit institutions such as accounting firms and
i.e. Strategy Committee Audit Committee Nomination Committee and national audit authorities
Remuneration and Appraisal Committee. Each Committee includes at
least one independent director. Except for the Strategy Committee the
chairmen of other Committees are independent directors. With this it
enhances the autonomy and independence of the Committees’ operations
and provides scientific and professional opinions for the Board of Directors
to make decisions.* To conduct research on the long-term development strategy planning of the Company and make suggestions
* To conduct research on significant strategic investments and financing schemes that shall be approved by the Board of
Directors in accordance with the provisions of the Articles of Association and make suggestions
* To conduct research on significant capital operations and asset management projects that shall be approved by the
Board of Directors in accordance with the provisions of the Articles of Association and make suggestions
* To conduct research on other significant matters affecting the development of the Company and make suggestions
Strategy Committee * To track and inspect the implementation of the aforementioned matters
15Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
* To study the selection criteria and procedures for directors and senior officers and By the end of the reporting period
make suggestions to the Board of Directors
* To extensively search for qualified candidates for directors and senior officers screen
and review such candidates and their qualifications
* To make suggestions to the Board of Directors with respect to the nomination
appointment or removal of directors the Company had female directors representing independent directors representing
* To make suggestions to the Board of Directors with respect to the appointment or
Nomination dismissal of senior officers
Committee 9 members of the 4 44 % 3 33 %* To exercise other functions and powers granted by the Board of Directors and make Board of Directors
recommendations to the Board of Directors in accordance with the provisions of the
laws administrative regulations of the CSRC and of the Articles of Association
During the reporting period the Company held a total of
* To work out remuneration plans or schemes based on the main scope duties
and responsibilities importance of director and senior officer positions and the
remuneration level of other related positions of other related companies
* Remuneration plans or schemes mainly include but are not limited to performance meetings of the Board of Directors Audit Committee meetings Nomination Committee meetings
evaluation criteria procedures and major evaluation systems as well as major
reward and punishment schemes and systems
Remuneration * To review the performance of directors (non-independent directors) and senior
993
and Appraisal officers of the Company and conduct annual performance evaluations on them
Committee * To oversee the implementation of the remuneration system of the Company Strategy Committee meetings Remuneration and Appraisal The average attendance rate of
Committee meetings the board of directors was
33100%
16Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Board of Supervisors
The Company has set up the Board of Supervisors in By the end of the reporting period
accordance with the requirements of the Companies Law
Articles of Association and Rules of Procedure for the Board
of Supervisors and procured the supervisors and the Board
of Supervisors to effectively perform their supervisory duties
namely overseeing the legality and compliance of corporate
the Company had female supervisors representing executive supervisors employee supervisor
governance significant matters and financial position and
performance of duties by the directors managers and other
senior officers of the Company in a manner responsible to 3 members of the Board of 3 100 2 1
shareholders. %Supervisors
During the reporting period
Any ma t te r s
put to the vote
of the meeting
meetings of the Board of Supervisors with an average attendance rate of were approved
unanimously
9100%
17Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Sound Investor Protection
With great importance to the information disclosure and investor communication the Company ensures a good relationship with investors by promoting transparency and trust. During the reporting period
Information Disclosure 信息披露原则
In strict accordance with the provisions of the laws and regulations
such as Companies Law Securities Law Administrative Measures for Truthfulness Accuracy the Company disclosed
Information Disclosure by the Listed Companies and Rules Governing
the Listing of Stocks and of the Articles of Association the Company
has formulated the Management Regulations of Information Disclosure The matters stated in the information The contents o f the in format ion 4 periodic reports
to regulate the information disclosure of the Company and the relevant disclosed by the Company shall be d isc losed by the Company shal l
persons with information disclosure obligation enhance its information consistent with the facts accurately reflect objective reality
disclosure management level and information disclosure quality and
protect the legitimate rights and interests of the Company its shareholders The Company has disclosed
and the relevant stakeholders. ad hoc reports
The securities affairs representative and securities affairs officer of the
Company assist in the information disclosure activities of the Company Completeness Timeliness 88
timely understand important information generated by the Company
in its daily business activities and promptly release it; organize and
arrange the preparation of the Company’s periodic reports interim
The information disclosed by the The information disclosed in the Company
announcements and other documents to be submitted in accordance
Company shal l be free from any shall be finished within the period as Number of announcement
with the requirements of other securities regulatory authorities etc.; and attachments and documents
significant omissions that may be specified by the relevant laws and
assist in the collection transmission summarization organization and posted online
misleading regulations and other normative documents
release of information from the Company’s various information points. The
specialists urge the Company and the relevant persons with disclosure 份
obligation to comply with the provisions on information disclosure and 65
perform their disclosure obligation in good faith.
18Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Investment Communication投资者关系工作基本原则
The Company maintains unobstructed and
transparent communication and interaction Principle of full information In addition to mandatory information disclosure The Company conducts investor relationship work
the Company voluntari ly discloses other Principle of good faithchannels with investors and has formulated disclosure in an objective truthful and accurate manner to relevant information of concern to investors avoid excessive publicity and deception
the Investor Relationship Management System
to effectively protect the legitimate rights and
interests of investors especially small and medium The Company complies with the provisions of the
investors enhance investors’ understanding national laws and regulations and the requirements When select ing the way of the investor
and recognition of the Company and uplift the Principle of compliant of the securities regulatory authorities and Shanghai Principle of high efficiency relationship work the Company fully considers information disclosure Stock Exchange on information disclosure and and low consumption improving communication eff iciency and
corporate governance level and overall corporate ensures that the information is disclosed in a truthful reducing communication costs
value thereby achieving the goal of respecting accurate complete and timely manner.rewarding and protecting investors. The Company
has an investor relationship officer responsible for The Company actively listens to investors’ opinions
managing investor communication maintaining Principle of providing investors The Company treats all shareholders and Principle of Mutual and suggestions achieves two-way communication
with equal opportunities potential investors equally to avoid selective investor relationship monitoring market sentiment communication between the Company and investors so as to form disclosure
disclosing ESG information promoting the brand positive interaction.and strengthening effective communication
between the Company and investors.During the reporting period.com
The Company received
investors
held held received over repied to answered received and responded to
99 times in total through phone or on-site methods 3 performance briefings 1online collective reception 708 investors 5 e-interactive questions 48 investor hotlines 18 emails
19Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
With shareholder return as its top priority the Company has clearly established the basic principles and specific policies of
2023 Online Collective Reception Day for Investors
profit distribution in the Articles of Association. The Board of Directors of the Company updates the Shareholder Dividend
and Return Plan every three years and rewards shareholders first through cash dividends.In May 2023 the Company participated in the “2023 Collective Reception Day forInvestors of Listed Companies in Xiamen” jointly organized by the CSRC Xiamen Office In the future the Company will continue to share its fruits with investors through its steady operation and good
and the Listed Companies Association of Xiamen. The Company’s senior officers performance.communicated with investors online regarding the issues of concern to investors such as During the reporting period
2022 and 2023Q1 performance cash dividends corporate governance development
strategies operating conditions and sustainable development of the Company provided the Company paid cash dividends totaling representing of 2023 net profits
valuable information for investors and created channels and platforms for interaction attributable to the parent company
and communication between the Company and investors.
2 times 178851700 RMB 50.74 %
distributing out of 2022 profit in the first time out of 23Q1-Q3 profit in the second time
78598500 RMB 100253200 RMB
Since its listing the Company has constantly paid reasonable returns to shareholders through cash dividends. By the
end of 2023
the Company’s cumulative cash dividends amounted to RMB
361311200 (including tax)
20Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Risk Control and Compliant Operation
In accordance with the relevant provisions of the Companies Law Securities Law Rules Governing the Listing of Stocks Guidelines for the Internal Control of Listed Companies Articles of Association and other laws and regulations and
based on the actual situation of the Company the Company has formulated its Internal Control System establishes and effectively implements the sound Internal Control System to enhance its risk management level.Purposes of internal control of the company Significant internal control activities
To establish and improve the internal organizational structure that complies with modern corporate management
requirements form scientific decision-making implementation and supervision mechanisms effectively prevent controlling
shareholders and actual controllers from abusing control rights to encroach on the interests of the Company harm the
interests of small and medium investors and ensure the achievement of the Company’s business management objectives
Internal control
over the
Internal control over Internal control appropriation of the
To improve the operational efficiency and effectiveness enhance quality establish an effective risk control system Internal control over majority-owned capital management over related party Company’s funds
strengthen the risk control capabilities increase returns to shareholders and ensure the healthy operation of all business subsidiaries transactions by controlling shareholders and
activities of the Company management
To establish a sound internal economic environment prevent and promptly identify and correct various errors and
frauds and safeguard the security and integrity of the Company’s assets Internal control over Internal control Internal control Internal control
external guarantees over significant on information over work
and financing investments disclosure safety
To ensure that the Company discloses information in a truthful accurate complete and timely manner
To ensure the compliance with and implementation of the relevant national laws regulations and the Company's
internal rules and regulations
21Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
The Audit Department under the Audit Committee of the Board of Directors is responsible for The Company timely identifies and systematically analyzes the risks related to the achievement of internal
overseeing and inspecting the internal control system of the Company. The Audit Department control objectives in operational activities so as to find a reasonable strategy to deal with the risks. Based
regularly inspects the deficiencies in the Company’s internal control system inspects and on the risk evaluation results the Company takes corresponding control measures to keep the risks within
oversees the Company’s internal control once a year assesses the effectiveness and efficiency tolerable levels and ensures that the management’s instructions are carried out.of its implementation and makes suggestions for improvement and carries out the special
inspections and supervisions over the Company’s internal control from time to time.Risk control measures
Internal control governance structure * Identify risks based on the established objectives and take necessary actions to manage Establish risks
Control
Objectives * Objectives are categorized into objectives both at the level of the Company and the level
of business process
Fully responsible for formulating implementing and
improving the Company’s internal control system and
regularly carrying out comprehensive inspections and
Board of effectiveness evaluations over the Company’s internal * Accurately identify internal and external risks related to the achievement of control Risk
Directors control Identification objectives
* Determine corresponding risk tolerance level
Fully responsible for overseeing the implementation of the
Company’s internal control system ordering the Company
Board of Supervisors to correct the deficiencies in internal control identified * Adopt a combination of qualitative and quantitative methods to analyze and rank the
and report to the general meeting of shareholders on the identified risks based on their possibility of occurrence and degree of impact and
implementation of the Company’s internal control system Risk determine the key areas and risks to be controlled in priority
Analysis * Form a risk analysis team to work according to strictly regulated procedures so as to
Responsible for establishing improving and ensure the accuracy of risk analysis results
comprehensively advancing the implementation
Management
of the Company’s internal control system in the
operational process and inspecting the formulation * Balance risks and returns and determine the risk response strategies based on the
and implementation of various specific internal control Risk results of risk analysis and with reference to the risk tolerance level
systems by the Company’s departments and units Response * Reasonably analyze and accurately understand the risk preferences of different groups Strategies
take appropriate control measures including four risk response strategies namely risk
avoidance reduction sharing and tolerance
22Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Anti-corruption and Integrity in Operation
Code of Conduct for Integrity
The Company attaches great importance to and continues efforts to foster a culture of integrity and integrates the code of business
ethics into daily operations. Additionally it cultivates a clean work atmosphere and strengthens the integrity building through training * The employees of the Company should effectively safeguard the
education warning reminders or otherwise so as to ensure normal business order and the healthy development of the Company. interests of the Company and shareholders and not misuse their
authority or damage the assets and equities of the Company
The Company continues to strengthen the two-tier anti-commercial bribery compliance system of Solex and its subsidiaries and adopts
a zero-tolerance approach towards commercial misconduct across the entire Group. Bestter has formulated the Code of Conduct on * The employees of the Company should diligently perform their
Integrity which regulates employees’ integrity in their work safeguards the interests of the Company and shareholders and encourages responsibilities and not misuse their authority for private gain or
fair competition. Bestter has set up an Integrity Committee and established a sound supervision and restriction mechanism to ensure damage the interests of the Company
the implementation of regulations and the popularization of internal anti-corruption awareness.* The employees of the Company should properly exercise their
management rights to prevent any behavior that may infringe on
Organization chart of the Integrity Committee public interests and the Company’s interests
Chairman of the Integrity Make coordinated advances in the integrity building of the Company and * The employees of the Company should be thrifty and spend
Committee position-related expenses in accordance with the relevant formulate related policies and systems regulations
Vice Chairman
* The employees of the Company should exercise their
Regulatory * Oversee the integrity building of the Company and investigate and handle authority properly perform their duties faithfully and any duty
Department disciplinary offences encroachment or other illegal appropriation is strictly prohibited
Audit Department * Conduct audits on the Company’s internal financial activities and management
behaviors identify issues and promptly report them
Education * Organize and carry out integrity education and training for employees
Department enhance integrity awareness and regulate behaviors Solex has established an employee whistleblowing mailbox and dedicated hotline
Public Supervision * Establish a public supervision platform with whistleblowing hotlines and a
improved the whistleblowing management system and regulated whistleblowing
CEO mailbox responsible for receiving the reports on integrity building from management. The relevant handlers strictly comply with confidentiality rules not
employees and the public disclose any pending matters to the complainants or the accused promptly handle
Integrity Group * Implement integrity requirements and regulations problems and address relevant reports and feedback within 3 working days.
23Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Data and Information Safety
The Company strengthens the protection and management of information assets through the building of digital platforms and systems and ensures the stable and secure operation of information systems. In the future the
Company will further improve business operational efficiency and security to provide customers with safer and more reliable services.Digitalization Construction
Transition from 1.0 Basic IT “Network Management Mode” and 2.0 Standardization Digital Framework Preparation to 3.0 Deep Integration
Intelligent Manufacturing Digital Decision-making
To comply with the Industry 4.0 and Made in China 2025 industrial
policy the Company deepens the application of next-generation 2020 Intelligent
2016 Mobile Officing
information technology transforms production methods through
MES System
development of digital productivity and enhances new capabilities to Weaver OA
thrive and evolve in the digital age so as to achieve its transformation Upgrading
upgrading and innovative development. Digital-driven
2008 Excellence in
Online Operations2005
Characteristics of digital transformation
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System SAP BW Data
SAP 升级 ECC6 2018 Data Mining and AnalysisOnline
The Company 2010
was founded 2007
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re V Solex IT 1.0 Solex IT 2.0 Solex IT 3.0
Digital development history of the Company
24
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ang Ch asXiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
The Company defines the overall details and priorities of digital transformation projects
Highlighted applications of digital transformation
devotes output results corresponding technological manpower and time. Meanwhile it
also completes the overall planning of data asset management provides comprehensive
information technology support through ten different dimensions builds an intelligent big
data cloud platform and reshapes productivity and business processes. * Integrate sales production logistics quality finance HR and other business ERP (SAP)
system data
* Provide full-process support from order placement to shipment
Informatization system framework
Process * Deeply support various production and operation processes within the R&D PDM+OA PLM
management Company
Marketing (BPM and OA) * Include daily administrative office production management sales support Marketing Marketing Website WeChat system financial management and R&D processes (PLM)
Service CRM+OA CRM SRM Mini APP WeChat Official Programs Account
Manufacturing ERP+OA APS MRP WIP WMS MES
Supply chain * Achieve whole-process closed-loop system management
Procurement ERP+OA PR PO SRM Electronic management * Receipt inspection and other relevant steps of incoming materials are Contracts system operated at the mobile terminal through scanning QR code on the label
Decision- BI BW Data making Warehouse Data Mining Big Data
HR HR+OA iHR e-Learning iRecruit * Manage the manufacturing process obtain machine production process
Automated Expense parameters provide “transparent factory” production and operation data in Finance ERP+OA Accounting Control Reimbursement Manufacturing real time
execution * Improve production efficiency and product quality and facilitate product
Operation and Infrastructure Virtualization Intelligent Operation system (MES)Maintenance Service and Maintenance quality traceability
Completed * Connect various systems of panel furniture production to achieve semi-
Office OA Mobile Platform IM Under Construction and automated processing in the production
Planning
25Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
The Company’s informatization covers all business departments to create a digital operation and digital factory
* Solve data mining and analysis for use by the management for the manufacturing industry. In this process the risk is controlled effectively.Big data BI system of the Company in decision-making Internal design process of digital transformation
* Drill down layer by layer to pinpoint business data issues
Source Control Process Management Review and Summary
Management
* Solve the outdated architecture of the old system separate
Sales transaction front end and back end of the new system address he * New knowledge and
CRM system product-linked quotations further interact with customers * Establishment of the techology learning project team
at the mobile terminal and manage customer projects * Budget planning
effectively * Task and plan mechanism management * Ex post review and
* Research methodology * Development process summary
* Project review mechanism control
* Three-dimensional design digital presentation and system * Introduction of technical * Milestone reporting
integration to generate production data such as material resources * Standardized testing
R&D design system
types and usage
* Support VR to view the design effect
* Timely push the report data of core business
* Data center equipped with large screens to display data in
real time
Support mobile office
* Support email sending and receiving integration of report
tools and integration of daily affair sheets
* Intelligent meeting room hardware support
Smart factory
26Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Information Security Protection
Structure of the Information Security Group
The Company has formulated the Computer Network and Data Head of the
Security Management Measures Data Backup and Recovery Information Security
Group
Management Regulations and other information security systems to
guarantee the security of internal and external computer networks Deputy Head of the
and data the protection of intellectual property and the confidentiality Information Security Group
of core technologies of the Company. The IT Center of the Company
is responsible for formulating and revising network and data security Information Liaisons
management systems establishing and maintaining computer Information Security Officer Officer
networks managing electronic media and electronic media devices
and ensuring the security of the computer networks and data of the
Company.Measures for the standardized use of electronic equipment
To effectively ensure the normal management and operation of
computer networks the Company implements unified network
exit management unified user management and publicizes and Not place hazardous items such as flammable explosive Turn off the power switch of electronic equipment in case of long
popularizes the information security knowledge within the intranet of strongly corrosive or strongly magnetic materials in the electronic downtime such as statutory holidays
the Company. Departments using electronic equipment keep a clean equipment application environment and follow the principle of Not use others’ passwords to log into others’ electronic equipment
safe and good work environment for electronic equipment to avoid “whoever uses is responsible” without permission
potential network information security risks. Set a password for the electronic equipment with password setting Contact the relevant electronic equipment administrator of the Group’s
function IT center for assistance when forgetting the password
Turn off electronic equipment when leaving work or not using
electronic equipment for a long time
27Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
The Company has formulated the Information The Company has formulated the Information Security Emergency Plan strengthens the network operation security and information security effectively handles
Security Management Procedures Information responses to public emergencies related to network and information security and further improves the ability and level of preventing and controlling network and
Resource Management Procedures and other information security emergencies so as to ensure its network operation security and information security. Additionally it has established a leading group of information
information security systems to ensure the system emergency response responsible for leading organizing and coordinating the response to information system emergencies throughout the Company.information security of the Company. It organizes the
assessments on information security management Identification of information security risks
level and the regular vulnerability scans to identify
problems in the information security management Physical-layer Security Risk Analysis Network Security Risks System Security Risks Application Security Risks
process and propose improvement measures.Information safety management measures * Operating system security risk * ID authentication and * System environment security * Network architecture security risk
* Database security risk authorization control security riskrisk * Network communication protocol
Information Safety Information Security * Application system security risk * Confidentiality and non-* Physical device security risk security risk
Risk Assessment Awareness Training repudiation risk in information
* Network operat ing system * Virus hazard security risk transmission
security risk * Hacker intrusion security risk
* Physical-layer security risk
Network Security Server Security analysis
Management Management
Emergency prevention and warning measures
Desktop Terminal Information security education and trainingData Security
Security Management Management Improve the monitoring forecasting and
warning system for public emergencies The Company organized its employees and the
related to network and information security
employees of subsidiaries to participate in information
Website Security Application
Management System Access Set information security level protection
security education and training in June 2023. The
Management and carry out information security risk training covered the email safe use standards
assessments and other relevant contents and the employees
were assessed online to check whether they have
System Administrator Disaster Recovery Make data backup and registration of grasped the contents. This training standardized the
Permission Management servers and data centers and establish a
Management operating methods of the employees enhanced their data disaster recovery mechanism awareness of information security prevention and
created a secure information work environment. Information security training
28Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Innovation-driving
Development
Solex always insists on the business philosophy of
“innovation design and manufacture”. Guided bythe strategy of “IDM Hardware Invisible ChampionIncubation Platform” and capitalizing on the mature
R&D model the Company focuses on closely
integrating the technological innovation and product
R&D of the IDM hardware category with the market
demand continuously builds integrates and
optimizes its three major resource-sharing platforms
of “model manufacturing and technology” enriches
products with more cutting-edge functions and
higher value through continuous innovation so as to
comprehensively enhance the core competitiveness
of its segmented categories.R&D Infrastructure
Quantitative
Indicators Unit 2023 2022 2021
The Company values the cultivation of highly-competent
R&D engineers and managers with team spirit devotes R&D expenditure RMB (in 0000) 20353.17 19221.98 16956.82
itself to discovering and nurturing strategic R&D
management talents and has established a hierarchical Proportion of total
system consisting of experienced technical R&D talents R&D expenditure to % 6.82 6.04 5.70
with a reasonable professional structure. Meanwhile the revenue
Company adopts a mentorship system for one-to-one
training and offers targeted cultivation to the R&D team R&D personnel Person 664 799 732 Post-doctoral research workstation of The Company as the subsidiary
from time to time through internal training university Solex was recognized as a High and New
education and overseas training. Technology Enterprise
30Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
To encourage the R&D team to actively engage in the The Company has established a Scientific and Technological Achievement Award Committee which consists of 9 professionals from diverse fields including 6
transformation of new technologies the Company has research project heads and others heads of the Intellectual Property Center External Relations Technology Department and Finance Department. Each member
formulated the Measures for Rewarding Technology of the Committee has distinct responsibilities and jointly handles matters related to scientific and technological rewards in the Company.Research Achievements R&D Reward System R&D
Incentive System and other documents to innovation Scientific and Technological
incentive and has set up the Innovation Output Prize Achievement Award Committee
Innovation Transformation Prize and other awards
to stimulate the innovation capabilities of individuals * To manage and guide scientific and
and teams. These measures aim to improve the technological achievement awards
overall research level and technological status of * To improve the scientific and technological
the Company and promote the commercialization of achievement award work of the Company
research achievements. * To guide and revise the scientific and
technological achievement award policy
Innovation incentive assessment dimensions * To review and reward achievements
Innovativeness Freshness
Research Project Head IP Center External Relations Finance Department
Technology Department
* To evaluate the award- * To provide the subsequent * To recruit talents and engage * To timely pay awards based
winning scientific and security for the research the experts related to the on the final evaluation
technological inventions achievements of the Company Company’s business results
research projects technology
innovation transformations * To improve the Evaluation
and technological innovation Committee’s construction
reforms of the Company of the hierarchical system
consisting of external talents
31Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
The Company actively promotes intelligent construction. By the end of the
reporting period the Company has established a globally leading intelligent Innovative R&D Achievements
manufacturing base covering an area of near 700000 square meters and
possessed multiple leading automated production lines in the peer industry The Company regards technological innovation as its core strategies and insists on the innovation and research of original fundamental and
and globally advanced intelligent production management systems. industry-critical technologies. The Company focuses on underlying key technology research continuously strengthens R&D and innovation
investment and takes the lead in such fields as contactless sensing technology quantitative technology and micro-current technology.The Company has established a Product R&D Review Committee responsible for its technological development strategy and R&D strategy
and organization of internal technical exchanges and discussions and conduct of technical reviews phased reviews and evaluations on the
established R&D projects. The Review Committee helps ensure that R&D aligns with the strategic development direction of the Company
promotes internal R&D team communication and advances R&D progress.Product R&D Process
Project Planning and R&D Testing and Evaluation Commercialization
Establishment Standardization
Intelligent production lines
32Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Kitchen and Bathroom Beauty and Health Smart Health AI Technology
* Break through the limitations of traditional * Focus on IDM business model accelerate * Have begun to incubate new smart health * Independent ly engage in algor i thm
and basic household needs of consumers continuous innovation in core and key hardware with the help of the endogenous research and AI application IOT scenario
and seek to create high value-added health technologies such as water saving and R&D technology sharing platform accelerate construction and the R&D and production
life demands for consumers based on the emission reduction water quality improvement the R&D of emerging smart health products of smart electronic components provide
“IDM Hardware Platform” Strategy and with skincare improvement interchangeable head and extend smart health hardware to a software and hardware support for various
the “intelligence health and green” as the technology radio frequency technology broader range of fields. single-product categories and empower
main R&D directions. microcurrent technology smart detection intelligent scenes or spatial solutions for
* Take smart sleep products and smart
* G r a s p t h e c o n s u m e r d e m a n d f o r spectral imaging technology and light wave multi-category integration.energy saving. sports health products as the two core R&D antibacterial beauty health care healthy categories. The smart sleep products focus * Continue to explore AI algorithms + health
water quality and health testing in kitchen * Against the backdrop of segmentation on the smart pillows and smart thin pads fields such as deep image algorithms
and bathroom health products or spaces deepening and diversification of the market while smart sports health products mainly 3D vision and sensor fusion algorithms
and continuously upgrade categories such and user needs the Company accelerates the include smart strengthen smart mats and which have been applied in various multi-
as showers faucets and smart toilets based development of new products in the beauty smart sports rehabilitation. category smart hardware terminals such as
on the concept of “health”. and health fields including smart detection commercial skin analyzers smart mirrors
skin health dental care hair care and beauty and anti-snoring pillows.skincare to meet the needs of customers at
different levels and stages.
33Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Carbonated Spring Shower System Smart ultra-quiet anti-snoring pillow changing sleep position
The Company innovatively developed a carbonated spring shower system which can For patients with obstructive sleep apnea (OSA) and snoring
increase the concentration of carbon dioxide gas in water to 2g/L thereby improving during sleep the Company has developed a smart pillow with
blood flow speed in the human body. Tests showed that a user’s blood flow speed an inserted AI neural network and air pressure sensing monitor
when using this system is 1.2 times that when using ordinary warm water thereby which monitors multiple airbag pressures adjusts the height of the
promoting user metabolism and helping relieve fatigue. In addition this system also airbags and gently changes the head’s sleeping position thereby
helps expand capillaries accelerate blood circulation increase circulating blood improving airway ventilation alleviating snoring symptoms and
volume and reduce the incidence of cardiovascular diseases. Also it can make the improving various health problems caused by breathing pauses.pH value of the bathwater weakly acidic neutralizing residual hair bleach and dye in
the hair thereby effectively removing alkaline substances and caring for the user’s
hair.Carbonated Spring Shower System
Xivi commercial skin tester
The Company works with well-known domestic hospitals and universities to
research and develop the Xivi commercial skin tester with 17 innovative skin
testing dimensions such as horn plugs and the five-spectrum snapshot function. Smart anti-snoring pillow
Such device has unique AI skin testing technology and combines skin medical
testing standards and clinical testing with a big data skin health intelligent
analysis algorithm more suitable for the Asian population. Based on AIOT
deep learning it can quantitatively analyze skin conditions generate electronic
detection reports and intelligent skincare plans in 10 seconds and provide more
medically professional skin diagnostic treatment program for large applications
such as beauty salons and cosmetic counters. The Xivi commercial skin tester
has obtained multiple patent certificates and its innovative technology has won Xivi commercial skin tester
respected recognition.
34Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Participation in craft design competitions
The Company sets up a professional industrial design team which actively participates in international and domestic industrial design competitions
such as the iF Industrie Forum Design Red Dot Design Award International Design Excellence Awards (IDEA) GOOD DESIGN AWARD and Cross-
Straits Industrial Design Competition. While promoting internal innovation and R&D enthusiasm the Company exchanged and cooperated with
outstanding companies participating in the competitions and learned their advanced design concepts and technologies to enhance its brand image
and expand its market channels.Award Awards Awarded by Product Name Category iF Award Certificate 2023Recipient
Oceanus (Quantitative Sensing Water Shower
Solex iF Design Award 2023 Dispenser)
International Forum Design GmbH Wings (Sheet Lifting Pole) Shower
Zhangzhou
Solex iF Design Award 2023 Double (Cup Cleaning Faucet) Hardware
Minerva (Shoulder Spray Lifting Pole) Shower
Solex Red Dot Winner 2023 Red Dot Award AG Red Dot Winner Certificate 2023
Detective (Dental Detection Pen) Shower
Shoulder Spray Lifting Shower Hardware
Solex IDEA 2023-Finalist 2023 Finalist 2023 Finalist 2023 Finalist
Industrial Designers Society of America Slick Shower Shower Slick handheld shower Minerva SLEAVE smart anti-snoring pillow
Professional Professional Professional
Designed By: Wang Xi、Lin Xian、Chen Xiaoling、Chen Zhida、Wang Designed By: Liu Lunzhang、Lin Xian、Lin Tao、Chen Zhida、Luo Designed By: Xu Xiaoyun、Wu Panyu 、Jiao Qilin 、Chen Yiteng 、
Zhangzhou Jiahui Meilin Chen Zhida
Solex IDEA 2023-Finalist Sleave (Smart Anti-snoring Pillow) Health
PIONEER ELMO (ECO-PLASTIC Shower - Lifting
IDEA Award Certificate 2023
Solex GOOD DESIGN AWARD 2023 GOOD DESIGN AWARD BUREAU LIFTING POLE) Pole
Detective (Oral Detection Pen) Beauty
B r o n z e A w a r d i n t h e 5 t h
Cross-Straits “Longjiang Cup” Venus Shower - Lift ing
Zhangzhou (Zhangzhou)
Pole
Organizing Committee of Cross-Straits
Solex Excellence Award in the 5th Industrial Design Contest
Cross-Straits “Longjiang Cup” Pioneer (Front Aluminum Wall-Mounted Shower - Lift ing
(Zhangzhou) Lifting Pole) Pole G-mark Award Certificate 2023 Bronze Award in the 5th Cross-
Straits “Longjiang Cup” (Zhangzhou)
35Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Intellectual Property Protection
With great importance to patent applications and intellectual property protection the Company The Research and Development Management System of the Company clearly stipulates that the Product R&D Department
has formulated documents such as the Basic Management Control Procedures for Intellectual responsible for new technology and product R&D shall file patent applications for each self-developed technology conduct
Property Patent Management System Trademark Management System and Intellectual patent searches and analysis and timely protect and avoid infringement of intellectual property. The Intellectual Property
Property Handbook. It has established an Intellectual Property Center responsible for Review Committee has been established under the Intellectual Property Center responsible for evaluating and reviewing
classifying grading maintaining and modifying intellectual property issuing warnings for intellectual property applications and maintenance filed by various departments to ensure the protection and management of
potential infringement and working out effective preventive plans. The Company continues the Company’s R&D achievements.efforts to improve intellectual property construction and has won the titles of “Xiamen IPDemonstration Enterprise” “Fujian IP Advantage Cultivation Enterprise” and “National-level The Intellectual Property Center is responsible for collecting and updating information on national and local governmentIP Demonstration Enterprise”. intellectual property laws and regulations policy measures domestic and foreign related patent literature and trademark
registration and publishing it on the “Intellectual Property Management Center” module on the Company’s internal website
for reference by the R&D team. Regarding possible intellectual property issues the Company has formulated the Intellectual
Intellectual Property Policy Long-term Goal Property Emergency Response Measures clarifying the work responsibilities of relevant departments so as to timely respond
to possible intellectual property disputes such as patents and trademarks and protect its legitimate rights and interest.Technology leads the future and Stimulate creation effective utilization
intellectual property contributes to emphasize protection strengthen Intellectual property dispute handling process
development management and cultivate culture
Discover Infringement Subject to Official Release Solutions Track Processing
Investigation
Number of invention Number of patents under
patents held review
356 pcs 565 pcs
Number of new patents Number of trademarks Number of patents held
in a year held
213 pcs 106 pcs 1346 pcs
36Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Promotion of Industry Exchange
Industry Cooperation
Solex values common growth with the industry actively involves in the formulation of industry standards participates in industry exhibitions and exchange activities shares advanced knowledge and experience and establishes good
cooperative relationships with upstream and downstream enterprises in the industrial chain to jointly advance industry development.Formulation of industry standards Formulation of industry standards
Standard Nature Standard Nature
Standard Name Standard No. (International/National/ Standard Name Standard No. (International/National/
Industry Standards) Industry Standards)
Ceramic Cartridge Faucets GB/18145-2014 National Standard Specification of Plastic Sanitary Ware Security Production JC/T2353-2016 Industry Standard
Sanitary Ware - Pressure Assistant Water Flushing Devices GB/T 26750-2011 National Standard Specification for Hardware Sanitary Ware Security Production JC/T2355-2016 Industry Standard
Sanitary Ware - Gravity Water Flushing Devices and GB 26730-2011 National Standard Lavatory for Sanitary Fittings QB/T2658-2017 Industry StandardSupports
Accessories of Bathroom QB/T1560-2017 Industry Standard
Sanitary Fixture for Water Saving GB/T 31436-2015 National Standard
Terminology and Classification for the Kitchen and Sanitary Thermotatie Faucets QB/T 2806-2017 Industry Standard
Ware Fittings GB/33733-2017 National Standard Thermostatic shower QB/T 5418-2019 Industry Standard
Minimum Allowable Values of Water Efficiency and Water
Efficiency Grades for Showers GB28378-2019 National Standard Cartridges for Faucet QB/5524-2020 Industry Standard
Quality Classification for the Kitchen and Sanitary Ware Chu Wei Wu Jin Biao Wei Kitchen and Sanitary Ware Fittings-Check Valve QB/T5740-2022 Industry Standard
Fittings (Zhangzhou Solex) 2021 National Standard
Smart Faucets T/CBMF24-2018/T/General Requirements for the Kitchen and Sanitary Ware Chu Wei Wu Jin Biao Wei Group Standard
Fittings (Zhangzhou Solex) 2021 National Standard
CBCSA2-2018
General Principles for Upgrade and Innovation Evaluation of T/CNLIC0012-2020 Group Standard
General Technical Specifications for Faucets QB/T 1334-2013 Industry Standard Consumer Goods
Flow Rate Regulators for Sanitary Tapware JC/T 2117-2012 Industry Standard Extractable Nozzle for Kitchen and Bathroom Faucet T/CBCSA25-2020 Group Standard
Non-contact Sensing-actuating Valves for Water Supply Foam Makers for Faucet T/CBCSA43-2021 Group Standard
Appliance JC/T 2115-2012 Industry Standard
Test Method and Acoustic Group on Noise Emission from
Appliances and Equipment Used in Water Supply Installations JC/T 2193-2013 Industry Standard
37Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Participate in the 27th CEB China Beauty Expo Participate in the 27th Shanghai Kitchen & Bath China Fair
In May 2023 the 27th CBE China Beauty Expo was held at the In June 2023 the 27th China International Kitchen & Bath Facilities Exhibition was
Shanghai New International Expo Center (Pudong). The Company opened at the Shanghai New International Expo Center. Solex and its subsidiary Bestter
displayed a range of R&D achievements in beauty and health jointly participated and set up three kitchen & bath exhibition halls for Solex showers
including commercial skin analyzers nursing RF instruments AI faucets and Bestter’s smart toilets. Around the concept of “big health” these hallshair removal devices dual-use devices for spot lightening and skin perfectly matched the “integrated embedded green interconnected intelligent healthyrejuvenation and ultrasonic essence atomizers. Additionally it also set and innovative” theme attracting thousands of visitors.up an immersive interactive experience area to share new technologies
and achievements with peers and customers.The Company’s booth at the 27th CBE China Beauty Expo The Company’s exhibition hall at the 27th Shanghai Kitchen & Bath China Fair
38Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
University - Enterprise Cooperation Join hands with Huaqiao University to explore “AI+Health”
Solex has established various forms of cooperation with many universities including joint training To further deepen university-enterprise cooperation and industry-educationcollaborative R&D topic cooperation internships and practical training so as to achieve resource integration the Company and Huaqiao University held a “Scholarshipsharing and complementary advantages between universities and enterprises promote the industry- Donation Ceremony and Joint Research Center Opening Ceremony”
university-research integration and contribute to technological innovation and industrial upgrading. in November 2023. Through joint training of postdoctoral fellows and
integration of resources from universities enterprises and vertical
The Company conducted unified promotion for the students majoring in numerical application industry partners the two sides aim to create a localized and
June 2023 control of Xiamen Ocean Vocational College and invited them to visit the exhibition specialized first-class “AI + Health” industry-university-research innovation
hall of the Company
institution. With a focus on the digital economy construction needs of Fujian
The Company invited the students majoring in water engineering of Xiamen and by adhering to an open and joint innovation model between universities
June 2023 University of Technology to visit the exhibition hall and production workshop and and enterprises they are committed to building the Smart Health Joint
conducted unified promotion for them
Research Center into an influential “AI + Health” integration and innovation
platform in the industry. Additionally the donation provided by the Company
The Company conducted unified promotion for the students majoring in mechanicalJuly 2023 University - Enterprise Cooperation Opening and electrical engineering of Xiamen University to attend the theme lecture held by to Huaqiao University was used to establish the “Industry-Educationthe Company and invited them to visit the exhibition hall of the Company CeremonyIntegration Scholarship of Huaqiao University and Solex” with the aim of
supporting the education of Huaqiao University.Students from various majors of Wenshan University attended a career planning
August 2023 lecture held by the Company and visited the production workshop and exhibition hall
of the Company
Students majoring in materials formation and control of Xiamen University of
November 2023 Technology visited the production workshop and exhibition hall of the Company and
attended a career planning lecture held by the Company
Students majoring in industrial design of Huaqiao University attended an industrial
November 2023 design lecture held by the Company and visited the production workshop and
exhibition hall of the Company
Teachers from the Language and Literature College of South China University
December 2023 held an exchange meeting with the Company and visited the exhibition hall of the
Company
December 2023 Overseas study groups from Huaqiao University visited the exhibition hall of the Company University - enterprise cooperation Students from universities were visiting the enterprise
forum
39Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Offer of Top-notch Customer Service Whole-process quality management system of the Company
Product Design and Development Quality Procurement Process Quality
Management Management
Quality Management
* Product input: Clarify the product development cycle and quality requirements and convert
* New suppliers: The development of new suppliers requires sampleSolex always upholds the quality policy of “customer them into quality standards. Key quality elements include appearance performance and trials and the Quality Department R&D Departments and otherfocus continuous improvement; quality first pursuit of special requirements. departments conduct on-site assessments to comprehensivelyexcellence” and exercises strict quality control in all * Design and review: Conduct design reviews to ensure design quality evaluate the suppliers’ quality performance.aspects such as product R&D material procurement * Product development and validation: Conduct type tests on parts and products to complete * Long-term cooperative suppliers: Clarify the basic quality
production and product testing thereby establishing the reliability verification of processes and products requirements for the cooperation between the two sides the
a good brand image. The Company has formulated * Product output and standardization: Review trial assembly analysis reports trial production handling of non-conforming products and other matters conduct on-
quality control procedures including the Incoming analysis reports and type inspection test results site quality assessments and training from time to time to enhance
Inspection and Test Control Procedures Production * Transition into mass production: Establish key control points such as a zero complaint rate the suppliers’ supply quality
Management Control Procedures Process Inspection for new products and 90% of pass rate for the first order
and Test Control Procedures and Final Inspection
and Test Control Procedures promotes and continues
to implement the requirements of the quality Product Manufacturing Process Quality Marketing Service Process Quality
management system executes a comprehensive Management Management
quality management system covering all employees * Manufacturing quality control: Continuously control and improve quality-related indicators * Customer demand: After the Sales Department and Quality
and processes throughout the Company so as to such as sampling pass rate and quality losses department receive the Customer Demand Information Form the
further enhance its product quality. * Parts manufacturing: Introduce automated equipment to improve production quality after-sales quality personnel confirm customer needs including
such as automatic drawing automatic polishing injection molding automation in-mold product model quality requirements packaging methods product
monitoring systems and other automated intelligent equipment; introduce MES information configurations etc. and the personnel of the data group convert
systems to enhance quality reliability handle abnormal work orders and improve data them into relevant SAP data and publish them in digital and written
informatization documents.* Assembly: Continuously improve processes to enhance production quality such as * Quality complaints from customers: Confirm with customers the
standardization of tooling design and removal of residual water details of product defects shipment date of defective products
* Change of management: Establish the change implementation process regarding a change order number and quantity etc. After-sales qualitiy personnel are
in product processes tooling equipment configuration and structure responsible for summarizing customer feedback and submitting it to
the management review meetings.
40Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
The Company identifies different quality requirements of stakeholders such as customers suppliers partners and internal related parties through the whole-process quality management and enhances its testing system
capabilities including personnel inspection skills equipment testing capabilities laboratory testing capabilities and certification capabilities.Improvement of personal inspection skills
Quality skills competition of the Company Skill assessment tests Internal quality management training
In March 2023 the Company organized a competition for quality skills During the reporting period the Company conducted two QC skill During the reporting period the Company completed 77 sessions of
and knowledge at the management level to promote basic quality assessment tests to enhance the work skills of personnel involved in internal quality improvement training and 10 sessions of external quality
knowledge improve the professional skills of key quality positions and quality control stimulate the learning enthusiasm of personnel involved improvement training focusing on quality management and professional
enhance the enthusiasm of employees in various positions for quality in quality control and improve the overall quality management level of skill enhancement. What’s more it conducted multiple sessions of
improvement. The competition was divided into four parts: written test the Company. training covering the operation and use of inspection tools the concepts
practical exercises quick-response questions and award ceremony and certification requirements of the quality management system and
Contents of skill assessment tests
with the winners being awarded at the end of the competition. the discussions on common customer complaints regarding specific
products etc. so as to enhance the quality management capabilities
and inspection skills of employees.Basic
inspection
skills
Process Visual
review inspection
skills skills
Mastery SAP
skills of application
standards skills
Measuring
tool use
skills
Quality skill competition Quality management training
41Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Enhancement of equipment testing capabilities
Innovation of the instrument measurement size In-mold monitors at the injection molding plant
During the reporting period the Company made breakthroughs and During the reporting period the Company gradually promoted visual
innovations in injection molding quality control measurement reducing monitoring of the production process and post-production visual
measurement time increasing productivity ensuring precise size identification and screening. Unmanned monitoring work can be achieved
measurement reducing labor costs and enhancing its modern quality image. by adding in-mold monitors. Cameras continuously capture images of the
With the help of new measuring tools the Company’s quality management production process inside the mold for monitoring and verification. The
personnel no longer need to position the measured parts manually and the process involves three rounds of image capture and verification. If any
system automatically makes determination and remains unaffected by the skill abnormality is detected during the process the control molding machine is
proficiency of operators. The whole measuring process is simple fast and prohibited from closing the mold and issues an abnormality alarm thereby
accurate reducing the waiting time for the measuring machine eliminating ensuring the stability of the process of parts production.measurement errors caused by human factors and the measurement data at
the end of the process is automatically saved. The precision detection can identify defects with an accuracy of 0.01mm
and the judgment and processing time of 0.01 seconds thereby achieving
stable process production quality reducing labor costs minimizing scrap
generated by abnormalities and customer complaints.Automated measurement Camera monitor
42Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Enhancement of laboratory testing capabilities:实验室测试能力
The Company has a national-level standard
laboratory center and introduces advanced
international and domestic equipment testing Waterproof Parts Life Universal
to conduct repeated tests on a series of quality Testing Testing Testing Testing
requirements for product waterproof performance
structural strength performance life electrical Mechanical Transportation
safety environmental tolerance and transportation Safety Temperature Testing Testing Performance Vibration
safety so as to ensure that product quality achieves Testing Testing
the advanced level.Surface Treatment Performance Comprehensive
Testing Testing Testing
The Company obtained the ISO 17025 CNAS Laboratory Center
Testing and Calibration Laboratory Certification
Capability Certification
Enhancement of certification capabilities
The Company has successfully obtained more
than 20 certifications from many countries in North
America Europe and Australia for more than 400
products such as showers faucets hoses and
ARCs providing high-quality services for customers
to expand their products globally. During the
reporting period the Company and its subsidiaries
obtained ISO 9001 Quality Management System
Certification and the Company obtained ISO 13485
Medical Device Quality Management System
Certification.The Company obtained ISO 9001 The Company obtained ISO 13485 The subsidiary Zhangzhou Solex obtained
Certificationa Certification ISO 9001 Certification
43Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Customer services Cooperate with the customer to develop products
With the “customer-oriented” service philosophy Solex The Company maintains open communication and information sharing with customers swiftly The Company and the customer plan to jointly develop a soda
is willing to listen to and understands the real needs of advances the updating and iteration of its technology and products by fully utilizing R&D system faucet with the Company’s distinctive quantitative function
customers carries out all of its business activities fully database resources and technological innovation capabilities and continuously recommends for high-end clients. In the development process the project
from the perspective of customers. It also keeps making to customers high-value-added technologies or products that meet market demand hotspots to encountered difficulties as the mass production of the support
innovation and improvement to meet the customers’ achieve win-win results thereby effectively enhancing the stickiness of downstream customers. arm could not meet the pass yield requirements. The main reason
current and future demand for products and spares The Company has established a unified customer resource sharing platform where customer was that the original process was stainless steel precision casting
no effort to go beyond customer expectations. These expansion of existing or entirely new categories can fully rely on existing customer resources which resulted in a high defect rate because of the product’s shape
efforts enable Solex to swiftly address customer issues and cross-coverage of different categories of customer groups can generate synergies. and size. After close communication between the Company and
stand in its customers’ shoes and always provide high- Customer service system the customer regarding the R&D process the Company urgently
quality services for customers. switched to the stamping process and the product finally met
Offer Valuable Product Solutions the pass yield requirements. The customer was satisfied with the
Customer service philosophy Continuously provide innovative and valuable product solutions for Company’s attitude to solve the problem and the newly improved
customers base on the life pain points and market trends product had no issues caused by the changes and has been
steadily shipped in batches.Customer-oriented
Customer-oriented
Be guided by customer demand respond quickly and correctly to meet
Offer Valuable customer needs and create value for customers
Product Solutions
Contact a Professional Team
A mature team will provide professional services and suggestions and
Service
Contact a bring efficient and pleasant cooperation experience to customersPhilosophy
Professional Team
Stabilize Contact Window
Stabilize Contact Familiar with customers stabilize contact window and avoid confusion
Window
Transparent and Sincere
Transparent and Treat customers with honesty and transparency without deception
Sincere Soda boiling water drinking faucet
44Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Cooperation with the customer Customer product experience
The Company has been cooperating with a shower brand customer since 2005 The Company provides customers with thoughtful beauty experience services.and provides this customer with showers including design and production. Before the experience it provides makeup removing and cleansing products
As one of core suppliers of customers this Company has established good introduces professional instruments explains health status assessment reports
cooperation with customers. and receives suggestions for areas and solutions to be improved. During the
experience it provides tracking and guidance services technical services
reminders on important points and auxiliary supplies such as gels creams and
NPD Model Quality Management hair regrowth products. After the experience it provides post-care products like
hydrating masks lotions and skincare creams.Leverage the Company’s core Stabilize highly intelligent
innovation competitiveness production capabilities to At the end of the experience the Company provides users with a complete
to provide innovative product ensure product quality enhance experience report comparing data before and after the experience and offering
solutions and cooperate with consumer satisfaction and specific beauty care solutions. Beauty testing services
customers to complete the reduce complaint rates
development and launch of
new products
The Company has established the Identification and Traceability Control
Supply Chain Management Daily Management Procedures to manage products throughout their lifecycle and ensure that
the quality status of products at all phases from entry of raw materials to
delivery of products is identified and traceable. In the incoming phase all
Stabi l ize the product ion * Actively respond to customer directly purchased/outsourced and customer-supplied materials must use
supply chain to ensure on- needs in daily work and the Company’s unified QR code labels specifying supplier information
time delivery of products and provide excellent services order number parts information production date. This facilitates internal
meet market-side inventory * Make improvement based on tracking and traceability of raw materials in case of customer complaints.needs of customers the relevant issues identified Specific product packaging boxes of the Company have traceable labels
in the Annual Review specifying production date and other information which are synchronized
into the SAP management system so as to trace production batch of
Supplier identification of raw materials
parts and provide customers with complete clear and correct product
manufacturing information.
45Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
The Company has formulated customer after-sales management systems such as the Customer Complaint Handling Operation Guide and The Company has established the Recall Operation Guide and
Customer Satisfaction Survey Evaluation Procedures to understand current and future needs and expectations of customers regarding service Medical Device Recall Control Procedures to strictly manage
quality improve the quality of complaint handling and continuously enhance customer satisfaction. product recall ensure that product recall is under control and
guarantee the safety of users.Customer complaint flow chart Customer satisfaction survey
Product recall process
Collect customer complaints and Quality Services Delivery
feedback Salesperson * Complete the Product Recal l
of Marketing Request Form
Department * Fill in the customer name product
Confirm feedback content * Performance * Communication * Timeliness of name quantity and reasons for
* Appearance and cooperation delivery product recall
* Design with customers * Reliability of
Hold responsible units and relevant capability * Timeliness delivery
personnel accountable for the * Accuracy of of complaint * Lead time of
customer complaint and feedback form technical data handling production
* Packaging * Effectiveness of Manager of * Organize relevant departments
Confirm with customers whether Marketing and personnel to analyze the recall sample shipping
supply can continue and Department reasons for products with normal
temporary supply standards quality
Feed back temporary improvement
measures to customers Quality * Analyze the reasons for products
Management with qual i ty defects and g ive
Department handling suggestions
Organize meetings to review the Three-year customer satisfaction results
reasons
Validate reasons through * Ho ld a management rev iew
necessary tests or experiments 85.55% 78.41% 83.4% General Manager meeting if the recall quantity
is greater than or equal to 200
pieces
Complete the corrective action
report within 7 working days
202120222023
46
Within the 7th working day
Within the 3rd working day
Within the 2nd working day
Within the 1st working dayXiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Stable Procurement Supply
Supplier Management
Solex is committed to building a responsible supply chain continuously The Company has formulated supplier management systems During the reporting period the Company
optimizing communication with suppliers improving quality of delivery including the Procurement Management Control Procedures New conducted supplier assessments
by suppliers and working with suppliers to create a win-win cooperation Product Development and Procurement Operation Procedures
relationship. The Company mainly purchases raw materials and and Business Partner Development and Management Rules and with a coverage rate of a qualification rate of
components sets safety stock levels for raw materials and has formulated put a sound supplier management system in place to standardize
a complete management system and standard system. It strictly supplier selection access evaluation and elimination mechanisms 38 % 98 %
implements the mechanism for supplier introduction and continuous and stabilize the supply of materials to the Company.evaluation and signs the Basic Supply Contract framework with qualified
suppliers to define the rights and obligations of the Parties.
202320222021
Overall Number of
suppliers suppliers 1338 1333 1324
Raw material
suppliers 144 142 139
Equipment
suppliers 180 176 168
Supplier Non-
category production 211 207 200
management suppliers
Production
suppliers 783 790 801
Administrative
and logistical 20 18 16
suppliers
47Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Supplier screening process
The Company identifies and controls quality or business risks in
* Collect the information about potential suppliers through peer recommendation the supply chain through regular supplier performance evaluations
Supplier internet search industrial concentration areas or otherwise based on the
Search/ audits or otherwise. The Company offers coaching and training to development service needs of the Company
Information suppliers whose assessment results are unqualified so as to help
Collection * Collect information about suppliers with performance capabilities select target
Continuous
them improve production and operation. If a supplier’s assessment optimization
suppliers and contact them score is at level D or below for 3 consecutive months and the of supplier
coaching offered by the Company fails or if there is a serious management
violation of contractual terms or the Company’s regulations then
* Contact target suppliers understand their cooperation willingness main business
the Company will handle unresolved orders returns payments
Contact whether the types of products match the procurement needs of the Company and and other matters and remove the supplier from the existing
whether the quality system or financial position is good and conduct preliminary
supplier database.screening
Month assessment scoring criteria
* Suppliers truthfully fill in relevant information such as company profiles Category Weight Scoring Rules
Preliminary organization structures equipment status logistics conditions quality
Evaluation on management environment and safety and intellectual property Incoming qualification rate 30%
Suppliers Quality
Disconnection and 30% A: 90-100 Excellent
* Procurement and development: Evaluate supply capabilities supply chain customer complaints B: 80-90 Good
systems customer service capabilities and safety and compliance of suppliers C: 70-80 To be corrected Delivery period 20% D: 60-70 To be rectified
* R&D technology: Evaluate development capabilities technical capabilities
On-site
Evaluation on equipment capabilities and process capabilities of suppliers
Development of new products 20%
Suppliers * Quality: Evaluate quality management structures quality management systems
equipment and other relevant conditions of suppliers
* Suppliers make samples based on the drawings provided by the procurement and
development department and provide corresponding samples for review
* The Company evaluates the functionality and quality of samples
Sample * Officially place purchase orders if the requirements are met; inform suppliers
Confirmation to make corresponding corrections discuss product design structures
process technology and performance and negotiate for the best solution if the
requirements are not met The Company was conducting appearance training for suppliers The Company awarded
excellent suppliers
48Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
During the reporting period
Transparent and Sustainable Procurement
The Company promotes the sustainable procurement specifies anti-commercial bribery Percentage of suppliers who have Percentage of suppliers who have Percentage of the Company’s
clauses in contracts signed with suppliers improves the supervision mechanism for signed the Code of Conduct for signed agreements containing the internal procurement staff who
commercial cooperation constraints enhances the two sides’ awareness of compliance Suppliers environment and labor requirements have passed the sustainable
with law and integrity in operation and creates a legal honest clean and efficient work clause procurement training
environment to safeguard the legitimate rights and interests of the two sides in cooperation.The Company requests suppliers to comply with the laws and regulations on environmental 100 % 100 % 100 %
and occupational health and safety in operation gives priority to the suppliers that have
passed ISO 14001 Environmental Management System Certification and ISO 45001 Number of suppliers who have conducted Number of suppliers who have conducted
Occupational Health and Safety Management System Certification and conducts on-site environmental impact assessments social impact assessments
evaluations on suppliers’ environmental and safety behaviors from time to time.The Company stipulates the suppliers’ business ethics fair competition anti-corruption 289 289
conflicts of interest human rights prohibition of child labor and forced labor freedom of
association and collective bargaining anti-discrimination and harassment sustainable
products conflict minerals employee health and safety environment and quality among
others in the Code of Conduct for Suppliers and request suppliers to sign the Code of
Conduct for Suppliers.
49Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Common Growth with Employees
With great importance to employee management and care the Company is committed to providing a good work environment and broad career
promotion opportunities for employees. It advocates democratic management values employees’ rights to participate in decision-making and
management focuses on employees’ occupational health and work safety provides regular safety training and health examinations to ensure
physical and mental health of employees.Employee Management
With the people-oriented management philosophy the Company focuses on individual differences among employees and has formulated scientific
and reasonable management strategies. In order to comprehensively standardize key management processes such as employee recruitment
attendance training benefits rewards and punishments the Company has formulated the Employee Handbook and Human Resources Management
System to ensure that all management behaviors are governed by rules and provide employees with clear code of conduct. Meanwhile this also
safeguards the legitimate rights and interests of employees and promote the stable and healthy development of the Company.The Company was named as one of Top 10 Growth Talent Enterprises
During the reporting period the Talent Office of Xiaman Municipal
Committee Xiamen Torch High-tech Zone Management Committee and
Xiamen Human Resources and Social Security Bureau jointly conducted
talent enterprise evaluations and the Company was named one of the
Top 10 Growth Talent Enterprises in Xiamen reflecting the efforts of the
Company in talent introduction and cultivation. High-quality talents are
the driving force for enterprise development. The Company will continue
to deepen talent management reforms improve the quality of talents
and optimize the allocation of talent resources to vigorously promote the
healthy development of the Company.Certificate of Top 10 Growth Talent Enterprises
50Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Adhering to the principle of transparent and open decision-making the Company encourages employees to actively make suggestions and
participate in the operation and management of the Company and focuses on improving employee communication and management mechanisms Set up the CEO mailbox
to build diverse communication channels. Additionally it regularly holds the Congresses of Workers and Staff. At the Congresses it earnestly listens
to the opinions and suggestions of employees promptly responds to and address their demands safeguards their rights to participate in democratic To strengthen communication between employees and management
management so as to enhance their sense of belonging and involvement. the Company has set up a CEO mailbox on the enterprise WeChat
platform to collect the opinions suggestions complaints or feedback
Congress of Workers and Staff of employees and help the management to understand real
thoughts and needs of employees. All letters received are carefully
reviewed categorized and processed to ensure that the opinions
In April 2023 Zhangzhou Solex Smart Home Co. Ltd. held the Third Congress of the First Trade Union at which the important documents including and suggestions of employees are responded to in a timely and
the Rewards and Punishments Management System Human Resources Management System and Compilation of Safety and Health Management reasonable manner and confidentiality measures are taken against
Systems were reviewed and the proposals regarding engineering technology production and operation personnel and labor living benefits and the information of employees during the processing.occupational health were discussed and explained. In addition the Congress set up a Q&A session to fully listen to employees’ opinions and promote
the continuous improvement and development of the Company.Congress of Workers and Staff and Congress of Trade Union
51Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Employee Recruitment
Number of
The Company strictly complies with the Labor employees 研发部门人员情况 By gender (Person) By age (Person)
Law of the People’s Republic of China Labor
Contract Law of the People’s Republic of China
and other laws and regulations signs the labor 1916 1232
contract with each employee ensures that
employees regardless of their ethnic group race Female Below 30
sex or religious belief shall not be discriminated
against in employment and creates a diverse Total employees 研发人员总数
inclusive and harmonious work environment.
27723183273
During the reporting period 4688 Person 664 Person Male 30-50
Above 50
the Company employed veterans By rank (Person) By employment type (Person) By education (Person)
5 disabled persons 52 5 人 117 3760
462429
Senior Middle Below
management management Full-time bachelor Master and above
211899
4355 Junior 64
management Bachelor
General Part-time
employee
Note: Part-time employees refer to employees who have signed service contracts.
52Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Adhering to the principles of fair just and open talent recruitment the
Company has formulated scientific recruitment processes and selection Cultivation and Promotion
criteria to comprehensively evaluate the professional skills comprehensive
qualities and development potential of candidates. The Company actively To meet the development needs of its strategic planning the Company has built a sound hierarchical talent system accurately identifies
attracts outstanding talents both inside and outside the industry through and cultivates employees with potential supplements high-quality talents that meet strategic planning requirements assures the sufficient
multi-channel and multi-form recruitment activities and ensures that the talent reserves at various stages of development further optimizes the talent structure and enhances its overall competitiveness.talents introduced fit with its strategies and business development to build a
high-quality and efficient talent team. A hierarchical talent system
Strategic Planning Enterprise Planning
On-site Talent Construction of Qualification System Employee Competency Requirements HR Planning
Market and
Talent Website
Certification and Assessment of Analysis of Personnel Structure
Recommendation
by Companies and Colleges and
Qualification Levels Quantity and Capability Gaps
Industry Insiders Universities Talent Demand
Personnel Structure Quantity and
Capability Requirements
Multi-channel
recruitment
information No Talent Recruitment/
Newspapers and release
Internal Training
Headhunting Talent Supply Headhunting Mechanism
Periodicals Companies Yes
Performance Management Talent Differentiation
System Mechanism
Talent Training Plan Talent Pool Talent Selection Mechanism
Formal Labor Market
Employment and Employment
Agencies Talent Training MechanismCenters Talent Development
Incentive Mechanism
Job Reporting 360°-degree
On-the-job Coach Off-the-job Training Evaluation
53Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
The Company is committed to providing employees with
comprehensive career development opportunities assisting
employees in working out personal growth plans and
clarifying their career development direction and goals.By implementing systematic training plans and adopting
scientific training assessment methods the Company
comprehensively improves the professional skills and
comprehensive qualities of employees and promotes
rapid growth of talents. To attract and retain outstanding
talents in the industry the Company has established open
and transparent promotion channels to ensure that every
employee has fair promotion opportunities.Dual-channel career development
To standardize and promote the continuous and efficient training the Company has formulated the Training Management System Internal Trainer
Senior Officer Chief Engineer Management System Outbound Training Management System and Solex Middle and Senior Management Teaching Management Plan. By conducting
online and offline training in a planned way the Company enhances the professional knowledge of employees strengthens their job competency combines
their personal career development with the Company’s strategic goals and helps the common growth between the Company and employees.Manager Senior Engineer
During the reporting period
Section Chief Advanced Engineer
Head Intermediate Engineer
the Company provided with a total training duration of an average duration of employees participating in a pass rate of
a total of training assessments
Team Leader Junior Engineer 452 sessions of training 21244.5 hours 4.5 hours per person 8005 100 %
54Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Training assessment methods
Level Contents of assessment Assessment approach Assessment time Assessment subject
Response assessment Employee satisfaction with training courses and trainers etc. Questionnaires interviews discussions After the courses
Training department/training
organizer
Trainees’ mastery of the training
Learning assessment contents/what they learned from Questioning written tests oral tests After the courses and during the personal experiences courses Training departmentthe training program
Behavior assessment Whether the trainees’ behaviors are
Questionnaires observation
changed as a result of the training performance evaluation 360-degree After three months or six months Direct headevaluation
Impact of the training on the
Result assessment Company’s performance/whether Accident rate quality production rate the changes in behaviors have a wastage rate morale cost revenue After six months or one year Enterprise
positive impact on the organization
Formulation of training plans
Training Personnel Course Determination Plan Content
Preparation
Place Scheduling
Purposes Analysis Survey of Lecturers Formulation Design
and
Selectio Organization
55Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Class-based hierarchical talent training SOLEX E-learning platform
The Company has built a cloud learning platform to optimize the learning experience
High-potential Focus on general skills with basic management knowledge as supplementary enhance job and efficiency of employees and facilitate their learning at any time and at any place.Talent Training competence of trainees and reserve talents for the grassroots and middle management teams
Camp This platform gathers diverse learning materials at which employees can freely in advance. choose courses for learning based on their work needs and personal interests. It
enriches the learning paths of employees and provides new and powerful support for
the knowledge management and talent cultivation of the Company.Provide job skills training on the professional side and provide management knowledge
Junior required by production departments on the managerial side. Through this training team leaders
Management
Training Camp can coordinate and solve specific problems encountered by employees in their work assist and
support superiors collaborate with peers and guide and supervise subordinates.Enhance the job competence of trainees identify high-potential individuals and reserve talents
Qingsong Training
Camp for the meddle management team through training for talents at the level of section chief or
above
Unify the direction clarify strategic goals of the Company; learn and master the management
systems of the Company and fulfill management responsibilities; systematically learn non-
Jinsong Training personnel and non-financial knowledge to master the team goals and team building knowledge
Camp from the perspective of finance and human resources; systematically learn management
knowledge of team building grasp the key points of efficient team building; improve departmental
performance and management level from actual work with the help of senior officers.Focus on enterprise operation management and building of the hierarchical talent system including
Training for Senior
Management but not limited to role cognition coaching techniques effective empowerment organizational
capabilities entrepreneurial spirit enterprise culture management and leadership skills. SOLEX E-learning platform
56Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Welfare Activities Welfare system
To ensure that effective implementation and
The Company is commi t ted to bu i ld ing a management of employee benefits the Company has
comprehensive and high-quality welfare system and Social Insurance Housing Provident Statutory Holidays Marriage Leave Bereavement established and improved multiple systems. To be
Funds Leave
providing employees with competitive salaries and specific the Solex Parental Leave Plan clearly defines
benefits. In addition to basic salaries it stimulates the the vacation rights and interests of employees during
long-term work motivation of employees by granting Maternity Leave Annual leave Sick Leave Work-related Canteen parental leave; the Solex Housing Plan specifies that
equity incentives. It also provides a comprehensive Injury Leave Benefits the eligible employees will be entitled to interest-free
social security system to ensure the basic living loans to alleviate their economic pressure; the Solex
standards of employees. Further the Company Employee Mutual-aid Fund Management Measures Summer Cooling Travel Communication Travel Night Shift
highly values the physical and mental health of Allowance Benefits Subsidy Allowance Allowance stipulates that the Company will provide timely
employees and provides them with regular holidays financial assistance to the employees encountering
and occupational health examinations to enhance special difficulties or disabled ones. The improvement Protective Proposal Annual Outstanding Physical Trade Union
their sense of happiness and security stimulate their Articles Improvement Awards Employee Award Examination Benefits of supplementary welfare systems resolves the
enthusiasm and creativity and jointly promote the concerns of employees fully safeguarding and
sustainable development of the Company. enhancing their benefits.Supplementary welfare
Parental
Leave
Mutual Housing
Aid Fund Program
57Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
With great importance to the well-being of employees the Company regularly plans and organizes various cultural and sports activities as well as holiday celebrations and builds a self-display platform for employees to promote
their interaction and communication. Meanwhile the Company gives special condolences and care to injured employees with the aim of enhancing their well-being strengthening team cohesion and guiding them to pursue a
healthy and sustainable quality of life.Organize the fun sports meet The trade union organized mooncake gambling on the Mid-Autumn Festival Care about injured employees
During the reporting period the Company organized a fun sports meet On the Mid-Autumn Festival the trade union of the Company organized mooncake During the reporting period the Company has always
integrating traditional sports with fun elements and set up challenging gambling and employees actively participated. In this activity employees enjoyed the paid attention to employee health. For injured employees
activities such as relay races and target throwing. Employees actively pleasure of throwing dice and competing for prizes experienced the charm of traditional the Company swiftly took actions and promptly sent
participated in various items not only exercising their bodies enhancing culture and felt the warmth of Mid-Autumn reunion. It not only brought joy to employees representatives to visit them in hospital with fresh fruits
mutual understanding and trust in a relaxing and pleasant atmosphere but also deepened their understanding and respect for traditional culture injecting new expressing condolences on behalf of all employees and
effectively promoting communication and collaboration among teams but vitality into the cultural construction of the Company. conveying the care and blessings of the Company. This
also demonstrating unlimited vitality and creativity of teams. demonstrated the humanistic care of the Company.Scene of the fun sports meeting Mooncake gambling on the Mid-Autumn Festival Representatives were visiting an injured employee
58Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Occupational Health Organization chart of the Safety Production Committee
With great importance to the occupational health and safety CEO Office
of employees the Company strictly complies with the
Work Safety Law of the People’s Republic of China Fire
Protection Law of the People’s Republic of China Law of Safety Engineer
the People’s Republic of China on Prevention and Control
of Occupational Diseases and other laws and regulations Safety Resource Technical Engineer
has formulated dozens of systems including the Hidden Department
Danger Investigation and Management System Fire
Management Measures Major Fire Accident Management Safety Standard
System Warehousing Management Measures and Engineer
Management System for Occupational Disease Protection
Articles and established a Safety Production Committee
to define safety responsibilities at all levels and implement
safety management into various operational activities. Shower Business Beauty and Health Electronics Environmental
By establishing a sound occupational health and safety Unit Business Unit Business Unit Service Center
management system the Company has obtained ISO
45001 and OHSAS 18001 Occupational Health and Safety
Management System Certifications.Quality Logistics Assembly Production Production Environmental IT Department HR Department
Department Department Plant Department Department Department
HOSE Injection Molding Plant Financial Center
Administrative Service
Center
Surface Treatment
Plant Mixed Color Plant Supply Chain
R&D Sales
Department Department
ISO 45001 Occupational ISO 45001 Occupational
Health and Safety Health and Safety
Management System Management System
(Solex) (Zhangzhou Solex) Note: Haicang Park
59Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
During the reporting period The safety management informatization is a key means for the Company to improve the safety The Company has adopted comprehensive and systematic measures to build a
management levels and enhance risk prevention capabilities. By establishing a hidden danger solid defense line of work safety. Specifically it regularly conducts various safety
investigation and analysis system safety document management system and safety training system activities and fire drills to deepen employees’ understanding of safety operation
the Company has achieved real-time monitoring risk warning and data analysis in the whole process procedures familiarize them with emergency response processes improve their
of safety production. With these efforts the Company has enhanced the accuracy and timeliness of risk identification and response capabilities and enhance their safety awareness
safety management and built a comprehensive and efficient safety management system. and self-protection capabilities.Safety-themed activity
the Company had
During the reporting period the Company carried out a theme activity titled
0 fire and explosion accidents “Everyone Knows Safety and Everyone Can Respond to Emergency” including
various kinds of activities such as award-wining quiz explanation of emergency
process wearing of emergency equipment and anti-fraud quiz. Through a
combination of theory and practice the Company helped employees understand
Hidden danger investigation statistics and analysis interface display (Solex) each aspect of emergency response grasp the core points of emergency
response and improve their practical operation capabilities.
0 equipment injury accidents
0 casualties due to electric shock
0 cases of occupational diseases among employees Hidden danger investigation statistics and analysis interface display (Zhangzhou Solex) Safety-themed Activity
60Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Conduct the fire drill
In December 2023 the Company conducted a fire drill
covering employee evacuation indoor exercises and fire
fighting simulations. It is designed to comprehensively
enhance employees’ safety awareness and emergency
response capabilities to ensure that they can respond
to safety accidents if any in a quick orderly timely and
effective manner. Through this drill employees deeply
realized the importance of safety hazard prevention and fully
Indoor fire drill Fire fighting exercise
understood their responsibility for fire safety.To ensure the occupational health and safety of employees the Publicize the Law on the Prevention and Control of Occupational Diseases
Company has established a comprehensive mental health support
system. By setting up a mental health counseling room and providing
professional psychological assessment counseling and educational During the reporting period the Company conducted publicity of the Law on Prevention and Control of Occupational Outdoor evacuation
training services the Company helps employees effectively cope Diseases in the form of a lecture to popularize relevant laws and regulations on prevention and control of occupational
with work pressure and enhance their psychological adjustment diseases to all employees emphasize the importance of occupational disease prevention and guide everyone to establish
capabilities. Meanwhile the Company carries out a series of activities correct concepts of occupational health. Through this lecture employees gained a deeper understanding of occupational
for occupational disease prevention to promote the standardization diseases learned more methods to prevent them and enhanced their awareness of occupational health.and scientific development of its occupational health management.Psychological counseling room Publicize the Law on the Prevention and Control of Occupational Diseases
61Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Participation in Charity
The Company fully implements the national strategy of strengthening the country through quality improvement and spares no effort to drive its high-quality development. It fulfills corporate social responsibility with a high sense of
responsibility and mission actively participates in various social welfare activities gives back to the society and benefits the people with practical actions contributing to a harmonious society and sustainable development.Organize the voluntary blood donation drive among employees Visit the Elderly Association Sponsor the Athletic Meet at the Gunong Farm Middle School
During the reporting period the Company organized a voluntary blood In October 2023 the Company sent representatives to visit the Gunong To promote the development of sports at Gunong Farm Middle School
donation drive titled “Roll Up Your Sleeves Donate Blood Generously” Farm Liming Zhuqu Elderly Association talk with the elderly members and effectively improve the physical fitness of students the Company
and encouraged employees to participate actively. Through this activity learn about their living and health conditions and present them with assisted the Gunong Farm Middle School in organizing an athletic meet by
employees lent their helping hands to patients in urgent need of blood souvenirs. This activity strengthens the connection between the providing necessary funding and material support. This sports meet inspired
and spreading warmth and care. Also employees experienced the Company and the elderly expresses care and respect for the elderly more students to participate in sports cultivated their spirit of teamwork
responsibilities and missions as members of society. and carries forwards the traditional virtues of respecting the old and and competitiveness and laid a solid foundation for their comprehensive
caring for the young. development.Voluntary blood donation activity Visit the Gunong Farm Liming Zhuqu Elderly Association “Solex” Athletic Meet at the Gunong Farm Middle School
62Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Daily Environmental Environmental Management
Protection ManagementWith the environmental policy of “preventing environmental pollution complying with environmental regulations promoting energy conservation andconsumption reduction and creating a harmonious coexistence of people and water” the Company has formulated and revised the Environmental
The Company has established a sound environmental Management Technology system and established an Environmental Management Center fully responsible for the daily environmental supervision
management system and a response management system and management and monitoring of the Company and the coordination between the Company and the government’s environmental departments so as to ensure
hopes that its production activities comply with the requirements of the smooth conduct of daily environmental work. In addition it has established a sound environmental management organization structure and obtained ISO
environmental regulations and standards through comprehensive 14001 Environmental Management System Certification and National Green Factory Certification.assessment and control of possible environmental impacts and Organization chart of the environmental management system
risks in its production activities.Vice Chairman
Manager of the Environmental
Department Hazardous Waste Head
Environmental Water Treatment Head of Hazardous
Protection Section Section Waste Warehouse
ISO 14001 Environmental Management System Certifications Xiamen Environmental Changtai Water Treatment Team Water Treatment of Water Treatment Water Treatment of
obtained by the Company and Zhangzhou Solex Team Environmental Team A Leader of Science Team Head of Building Materials and Technology Park the Health Park Intelligent Park Park
64Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
National Green factory Emergency Management
Being officially put into production in 2020 Zhangzhou Solex is the The Company has established the Environmental Hidden Hazard Investigation System and implemented environmental protection and work safety
Company’s largest smart home manufacturing center in recent years. After according to the principles of “three musts” “who is in charge who is responsible” and “all employees whole process all around and 7*24”. Inonly two years of operation this center has reached the level of a “Green addition the Company has established the Environmental Emergency Response Plan and formed an emergency plan revision group to strengthenFactory” namely achievement of green goals such as intensive land use the response capabilities of the employees when facing environmental emergencies.harmless raw materials clean production waste resource utilization and
low-carbon energy and has become an advanced model of local green
manufacturing. Training on the Environmental Emergency Response Plan Hazardous waste leakage disposal drill
Currently both the Company and Zhangzhou Solex have obtained the
Green Factory Certification. In July 2023 the Company organized special training on the Environmental In August 2023 the Company conducted its annual drill on the disposal of
Emergency Response Plan for the environmental specialists from various hazardous waste (oil) leakage primarily simulating emergency treatment
workshops. The contents of training included but were not limited to the in the process of leaked hazardous waste (oil) cleanup. This drill aimed
types and characteristics of environmental emergencies formulation and to enhance the capabilities of the employees in handling emergencies
implementation process of emergency response plans departmental and their environmental awareness and to test the emergency response
coordination mechanisms and preparation and use of emergency response speed of relevant employees.equipment and resources. This training was designed to enable employees
to respond quickly and effectively to environmental emergencies minimize
damage to the environment and ensure the safety and health of employees.Green Factory plaques
During the reporting period
the Company organized a total of covering
12 sessions of environmental person-timesprotection training 3084
Training on the Environmental Emergency Response Plan Hazardous waste leakage disposal drill
65Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Prevention and Control of Three-waste Pollution Waste Gas
The Company spares no effort to minimize the impact of three wastes (i.e. waste water waste gas and solid waste) hazardous wastes and hazardous The Company has formulated the Waste Gas Operation Manual for each
chemicals on the environment and human health and ensure the work safety. It has also taken a series of effective measures to reduce and treat the production line to standardize the waste gas treatment process abate
emissions of “three wastes”. Through comprehensive treatment and management of three wastes the Company not only protects the environment and unorganized emissions of waste gas and improve the efficiency of terminal
abates pollution but also improves resource utilization efficiency reduces production costs and achieves both economic and environmental benefits. treatment so as to ensure compliance with exhaust emission standards.Training on the operation manual for waste gas treatment
Waste Water facilities and volatile organic compound emissions
The Company has formulated the the Operation Manual for Water Discharge of the Electroplating Workshop to standardize the discharge of various In May 2023 the Company organized the training on the operation
types of waste water and ensure the normal operation of the water treatment system. In the production process the Company discharges the project manual for waste gas treatment facilities and volatile organic compound
waste water into the comprehensive pool after quality separation and diversion processing so as to improve the water resource utilization rate. Some emissions for the equipment staff the person in charge of the
waste water from the comprehensive pool is reused for production after being treated in the water reuse treatment facility while the remaining is management of waste gas treatment facilities and the environmental
discharged after meeting discharge standards. specialists of on-site production workshops. The contents of training
covered basic principles and workflow of waste gas treatment facilities
preparation and updating of the operation manual identification
monitoring and control of volatile organic compound emissions etc.Flow chart of waste water quality separation and diversion processing Training on the operation manual for waste gas treatment facilities and
volatile organic compound emissions 66Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Solid Waste
The Company manages solid waste by garbage classification waste oil recycling devices in the injection molding workshop injection molding granulation ABS recycling and
other measures so as to increase the reuse rate and avoid waste.Training on standardized management of
solid waste
In March 2023 the Company organized the training
on standardized management of solid waste for on-
site hazardous waste management personnel key
environmental management leaders from various
workshops and environmental specialists. The contents
of training covered the knowledge on the classification
collection storage transportation and disposal of solid
waste. Meanwhile the lecturer introduced corresponding
treatment methods and technologies for different types
of solid waste. What’s more the training emphasized
the importance of environmental protection laws and
regulations reminded relevant personnel to strictly
comply with the requirements of relevant regulations Garbage classification in the park
and standardized waste treatment.Training on standardized management of solid waste Waste oil recycling device Injection molding granulation ABS recycling
67Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Hazardous Waste Hazardous Chemicals
The Company has formulated the Hazardous Waste Management System Hazardous Waste Management Plan and Hazardous Waste Warehouse To strengthen the safety management of chemicals
Management System to standardize the management of hazardous waste. Hazardous waste generated in the production process of the Company is transferred ensure work safety and safeguard the lives
to qualified third-party companies for disposal. and properties of employees the Company has
formulated the Measures for Management of
Plan on minimization of toxicity from hazardous waste Chemicals and Operating Regulations for DangerousChemicals and implements a “special izedImprove the quality of raw materials strengthen the quality inspection of incoming raw materials directly return unqualified materials to suppliers for reuse management system” for storage of chemicals.and reduce the chance of their entry into the production line reduce the generation of unqualified materials thereby reducing the generation of toxic and List of chemicals used in the production process
hazardous or low-toxic and low-hazardous waste of the Company
Strengthen the management and control of the production process implement strict classification management and minimize the generation of hazardous Particle urea-formaldehyde molding plastics
waste
Polypropylene
Further abate pollutants from workshop source and increase utilization and recycling rate
Degreasing oil
Measures to reduce the generation of hazardous waste and minimize its toxicity Low-temperature shock-absorbing grease
Improve design Use advanced Use clean Improve Comprehensively use Improve the pollution Hydraulic oil
technology and energy and raw management hazardous waste prevention and
Tailor products according equipment materials control level
to customer demand Use the equipment with Use more Exercise effective Repeatedly use rags Regularly maintain Lubricating oil
and minimize waste better performance to environmentally control in the containing paint waste and exhaust
of raw materials to reduce the generation friendly raw process to reduce or alcohol recycle treatment facilities to
avoid the generation of of hazardous waste materials and waste cleaning waste minimize leaks in the Silicone
hazardous waste and the consumption gradually increase water and reduce workshop
of raw and auxiliary the use of clean generation
materials energy Liquid silicone rubber
68Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Energy and Resource Energy Conservation
Conservation The Company adheres to the energy management policy of “compliance with law fine management low-carbon manufacturing and sustainable development”. The Company has formulated the Energy Management Procedures
Energy Review Management Procedures and Management of Energy Benchmark Energy Performance
The energy and resource conservation is one of the Company’s important Parameters and Goal Indicators and other energy management systems revised the Energy Management Manual
environmental protection efforts. Through the energy and water saving and New Modified Expanded Energy Planning and Design Management Procedures during the reporting period
technology reform the Company not only reduces production costs to standardize its daily energy and resource usage. By establishing a sound energy management system the
meets customer demand but also decreases environmental burdens. Company has obtained ISO 50001 Energy Management System Certification.ISO 50001 Energy Management
System Certification
Chart of energy management system process Organization chart of the energy management system
Demands and
Internal and External Factors Expectations of Energy Conservation Leadership Group
Stakeholders
Energy Management System Specifications
Energy Conservation Work Group
P
Planning
Administrative Production Business R&D Sales Finance Procurement
Department Unit Department Department Department Department HR Department IT Department
A Support and Improvement Leadership DRole Operation Responsible Responsible Responsible Responsible Responsible Responsible Responsible
for water for R&D for for for planning for personnel for the
electricity improvement evaluating accounting procurement and training development
gas and and sales plans cashier and supplier management procurement
Performance steam system management and product budgeting management and
Evaluation measurement of new prices and auditing management
transportation products of software
C maintenance and hardwareadministrative
logistics Organize and oversee
and vehicle the energy conservation
management work management of
Expected Results Shower Business Unit
of the Energy Beauty Business Unit and
Management System Electronics Business Unit
69
Electronics
Business Unit
Beauty Business
Unit
Shower
Business UnitXiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
The Company has established the Energy Risk and Opportunity Control Rewards and punishments for energy conservation assessments of the Company
Procedures and set up an energy risk and opportunity assessment team
which is led by the energy-saving team. After extensive discussions and Commend outstanding units and individuals in energy conservation efforts and criticize the units and
effective analysis and judgement by various departments the Company individuals who consistently fail to meet energy conservation goals
prepares the Energy Risk and Opportunity Assessment Form grades
risks and develops corresponding response measures.Increase assessments on those who are irresponsible in their work and inefficient in their management
In accordance with the provisions of the Energy Operation and who cause energy losses due to human and management responsibilities and impose administrative
Management Procedures the Company shall hold an annual penalties and performance assessments on the managers section chiefs and team leaders on a joint basis
energy conservation summary and analysis meeting conduct
energy conservation publicity and education and organize energy
conservation training at the beginning of each year to enhance
employees’ awareness of energy conservation. Additionally the Conduct an assessment on the responsible person and also on the corresponding department
Company formulates medium- and long-term energy conservation manager on a joint basis based on specific circumstances in case of energy losses caused by
plans and corresponding employee reward and punishment measures equipment systems and other factors or in case of failure to consider analyze study the defects
based on energy conservation goals every year. Adhering to the affecting equipment efficiency or failure to work out improvement or treatment plans in the whole
principle of a combination of both spiritual and material management in production process
energy conservation efforts the Company ensures rewards for savings Increase assessments when there is an improvement and treatment plan but the improvement and
and punishments for waste. treatment fail to be finished within the period as specified therein
During the reporting period
he Company implemented a total of invested approx. RMB Conduct performance assessments when human error results in metering errors omissions or
misreporting of energy consumption and electrical energy
163.75
energy conservation management plans million The Administrative Department is responsible for maintaining and repairing all non-production energy (gas
water electricity) metering devices at measurement points and is required to ensure that the effective use
and accuracy rates of such devices must reach 100%. Conduct an assessment on the responsible person
based on the resulting loss in case of any anomalies
achieve annual electricity savings of annual steam savings of
500000 10.8 Relevant departments should inspect energy-saving measures for the use of water electricity gas and steam at offices and on-site.
Circulate a notice of criticism against any waste behavior due to failure to comply with the requirements
kWh tons
70Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Application of energy-saving air compressors
Zhangzhou Solex invested RMB 1636000 to purchase 4 air compressors with the level-1 energy efficiency label which were equipped with AI controllers.These compressors can automatically start and stop based on backend big data with one featuring load adjustment frequency and two incorporating
waste heat recovery systems. The application of these technologies will effectively reduce energy consumption decrease environmental burdens and also
contribute to improvement in production efficiency and cost savings. This energy-saving technology reform project reflects the Company’s commitment to
energy conservation and emission reduction and has won the title of “Provincial Energy-saving Demonstration Project”.Rooftop PV power generation
In response to the national carbon peaking and carbon neutrality goals Zhangzhou Solex introduced a rooftop PV project taking full advantage of idle
rooftops for distributed PV construction. By adopting the “self-generation and self-consumption with surplus electricity being transmitted to the grid” model
Zhangzhou Solex achieved the dual goals of effective utilization of electricity and energy saving and emission reduction. Clean energy accounted for
25.33% of the total energy consumption at this base.
With PV construction the Company generated
5000000 kWh of electricity annually
reduced carbon emissions by equivalent to planting
Rooftop PV power generation project 5000 tons 209600 trees
71Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Water Saving During the reporting period
The Company has formulated a Water Consumption Management the Company implemented a which can achieve annual Water consumption plan is
System to rationally standardize water consumption strengthen water total of water savings of
management and improve water utilization efficiency. In accordance
with the requirements of the policy the Company’s Energy Department 7 water saving organizes water balance tests every three years and obtains test reports. management plans 64590 tons 50884 tons per month
Water saving management plans
Waste water from production is reused after being treated by equipment The Company’s factories use recycled water in their cooling towers and The production assembly water testing of the Company uses recycled water and
and meeting standards. adopt medication treatment to reduce waste water discharge. the cleaning frequency has been extended from once per quarter to once per year.Waste water recycling treatment center Cycling use of water in injection molding cooling Recycling pool of assembly water testing
72Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Green Water-Saving Products Water saving and energy conservation starting with small stepsThe Company takes “green manufacturing and smart The cross-flow of hot and cold water pipes in faucets leads to significant hidden energy waste. If calculated based Green electroplating technologyhome” as its long-term development strategy. It seeks to on a cross-flow rate of 0.8L/m per time 150 times/day 20 seconds/time a rise in the temperature from 20 degrees
achieve greening of products from four aspects namely Celsius to 70 degrees Celsius and a heater thermal efficiency of 0.9 a conventional temperature-adjustable faucet
Green electroplating is an environmentally friendly surface
energy conservation water saving zero PVC and recycled will waste 900 degrees of electricity a year which can be used by the family for three months. To address this issue
treatment technology which can reduce or eliminate
materials and strives to reduce the impact on environment the Company has developed a completely independent and closed full-cold and full-heat sensor facet helping
environmental pollution and harmful substance emissions
in the product life cycle to enhance the green quality energy conservation from small steps.generated in traditional electroplating process. The Company
of products and to meet the demand of customers for
introduced the advanced Chrome 3 technology to optimize the
environmentally friendly products thereby making positive Efficient water saving Efficient energy conservation
production process reduce energy consumption and waste
contributions to sustainable development.water discharge and minimize the negative impact of the
electroplating process on employees and the environment. The Company has upgraded the temperature The Company developed infrared sensing technology Green products adjustment plan and uses a new faucet structure to ensuring that the static power consumption of the faucet
Manage water and energy ensure cold and hot separation without any leakage. is not greater than 25UA. When a user uses ordinary Comparison of two electroplating technologies
Energy consumption by water usage This design ensures that the faucet ball head and the four AA batteries the faucet can operate normally for
Conservation and water temperature displayed Traditional Chrome 6 technology gasket are completely sealed when the water flow is more than 2 years. When the user uses lithium batteries
on LED display screens thus in either full cold or full hot state thus preventing cold along with super capacitors if calculated at a flow rate
reducing energy consumption
Metallic chromium coating in plating solution water infiltration in full hot state and eliminating hot of 3L/min the charging current can reach over 35mA. It
Mix water with air to reduce comes from Cr6+ or Cr3+ water waste in full cold state. The design has been takes approx. 10 minutes to fully charge the capacitor
Water water consumption by 40% awarded an invention patent. and when fully charged it can power the solenoid valve
Saving without affect ing shower to switch continuously for over 250 times with no need
experience Chrome 3 technology for battery replacement for at least 8 years.Use environmentally friendly
mater ials to manufacture * Metallic chromium coating in plating solution
0 PVC products and not generate comes from Cr3+
harmful gases or heavy metal * Less toxic to human health (toxicity is only 1%
pollution in the production process of Cr6+)
Up to 65% recycled materials * Non-oxidizing
Recycled are contained in the products of * Safer in manufacturing processes and also
Materials the Company which are based for humans and the environment
on the waste plastics discarded
by the end consumer. Updated temperature adjustment plan Hydropower sensor faucet
73Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Green Home Co-creation The recycling rate of the Company’s product packaging materials is
100%
The Company is actively pursuing its carbon neutrality goals and strives to become a carbon-neutral company
by 2025. With a strong conviction that the environmental initiatives are key to building a green home it
hopes to drive environmental concern and involvement among downstream supply chains and employees by the percentage of recycled plastic content
practicing green packaging and green office initiatives. in some plastic packaging materials is
Green Packaging 50 %
The Company uses biodegradable or recyclable
green materials for product packaging such as paper
and bio-based plastics to reduce plastic pollution and
resource waste. All printing adopts environmentally
friendly inks including product silk screen packaging
liner and outer box printing. The Company reduces
the use of packaging materials decreases packaging
weight and volume and minimizes consumption and Forest Stewardship Council (FSC) Certification Provincial Green Supply Chain Management Enterprise
waste generation by optimizing product packaging
design. In addition the Company reuses packaging Basic types of the environmentally friendly packaging materials of the Company
and cargo transport pallets to minimize packaging
waste and environmental pollution. PP nonwoven
PE bags with 30%
The sustainable packaging solutions of the Company Wrapping paper
PE bags with 51% fabric bags that can
recycled content recycled content decompose naturally
have been verified by the Forest Stewardship Council after 90 days outdoor
(FSC). Further the products and raw materials of
the Company have obtained green supply chain
certifications from reputable organizations in multiple PP nonwoven PBAT/PLA blended Bio-based
countries or regions. composite bubble Dust-free paper bags biodegradable hydroentangled bags
bags plastic bags
74Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Reduced packaging
The Company continuously explores and promotes green product packaging and redesigns product packaging and streamlines packaging structure to minimize the use
of packaging materials while ensuring the functionality and protective performance of production packaging are not affected. Additionally it advocates the concept of green
consumption conveys the value and significance of reduced packaging to consumers and guides them to support green products with a view to reducing the negative impact
of packaging waste on the environment.Reduced product packaging of the Company
Item Downsize the color packaging box: Remove internal plastic packaging: Downsize turnover pallets:
Reduce height and width of the color Replace inner PE bags with bundled Downsize turnover pallets of internal parts
packaging box straps Replace the expandable polystyrene with
paper for the turnover pallets of internal parts
Before change
After change
75Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Green Actions
The Company organizes green actions such as environmental knowledge competitions to enhance employees’ awareness of environmental protection and facilitate the dissemination of environmental concepts within the
Company. Meanwhile it devotes itself to promoting green office and taking measures such as water-saving slogans and air-conditioning temperature limitation so as to ensure that energy conservation efforts are integrated into
the daily work of employees.Contest on the Environment Day Green financial investment publicityIn June 2023 the Company organized a World Environment Day activity titled “Building Modernization for Harmonious During the reporting period the Company efficiently and visually promoted the conceptCoexistence between Humans and Nature”. This activity was designed as an interactive environmental knowledge of green investment to employees and the public with help of the electronic screen so as
competition with the aim of enhancing employees’ environmental awareness and increasing their concern to and to popularize knowledge about green financial investment enhance recognition of green
involvement in environmental protection efforts. finance strengthen risk prevention awareness advocate green investment and jointly
promote the sustainable development of the financial industry.Publicity posters and banners
Green financial investment publicity
76Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Key Performance
Environmental
Issue Quantitative Indicator Unit 2023 Data 2022 Data 2021 Data
Total investment in environment management RMB 14488071 13773408 10217587
Environmental Including: Total investment in energy-saving and
Management consumption-reducing improvement initiatives RMB 3173631 5306735 2167666
Including: Total investment in other measures
related to environmental protection RMB 11314440 8466673 8049921
Gasoline consumption in self-owned vehicles for
official use Liter (L) 44921 35897 45690
Diesel consumption in self-owned vehicles for
official use Liter (L) 11358 10587 9681
Diesel consumption in self-owned logistics freight
vehicles Liter (L) 50753 54786 67859
Total natural gas consumption Cubic meter (m3) 120862 140530 163172
Total steam consumption Cubic meter (m3) 9941 10094 10627
Energy Use Total electricity consumption Megawatt hour (Mwh) 62134 59029 67331
Total purchased electricity Megawatt hour (Mwh) 26950 29342 33731
Consumption of self-generated renewable
electricity Megawatt hour (Mwh) 2080 0 0
Electricity consumption per unit output Megawatt hour (Mwh)/RMB 10000 0.21 0.20 0.20
Annual electricity savings directly realized by
energy saving and efficient measures Kilowatt hour (kWh) 8487251 759528 3512004
Annual use of recycled plastic Ton 991 954 905
77Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Issue Quantitative Indicator Unit 2023 Data 2022 Data 2021 Data
Total waste gas emissions 0000 cubic meters (0000 m3) 373908 274140 393156
Nitrogen oxide (NOx) emissions Kilogram (kg) 0.02 0.02 0.22
Sulfur oxides (SOx) emissions Kilogram (kg) 0.02 0.02 0.22
Waste Gas
Management
Volatile organic compounds (VOCs) emissions Kilogram (kg) 1.27 1.63 1.14
Ammonia (NH3) emissions Kilogram (kg) 0.07 0.10 0.31
Hydrogen chloride (HCL) emissions Kilogram (kg) 1.79 0.88 2.31
Total water consumption Cubic meter (m3) 463751 410648 467872
Total net freshwater consumption Cubic meter (m3) 463751 410648 467872
By source of abstraction: municipal water supply Cubic meter (m3) 463751 410648 467872
Recycled/reused water Cubic meter (m3) 47330 45660 44260
Water Resource
Management Water consumption per unit of product Cubic meter (m3)/RMB 10000 1.57 1.39 1.36
Annual water savings directly realized by water
saving measures Ton 76357 50289 56210
Total waste water emissions 0000 cubic meters (0000 m3) 24.28 22.36 24.81
Total chromium Kilogram (kg) 12.60 6.90 22.50
Hexavalent chromium Kilogram (kg) 1.20 0.40 12.00
78Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Issue Quantitative Indicator Unit 2023 Data 2022 Data 2021 Data
Total copper Kilogram (kg) 12.10 6.60 48.90
Total nickel Kilogram (kg) 11.90 8.50 11.1
Chemical oxygen demand in waste water Kilogram (kg) 15842 10809 13926
Water Resource
Management Ammonia and nitrogen in wastewater Kilogram (kg) 4211 3764 5253
Total nitrogen in waste water Kilogram (kg) 5774 6193 7249
Total phosphorus in waste water Kilogram (kg) 801 849 111
Suspended solids in waste water Kilogram (kg) 8164 4904 3723
Total hazardous waste Ton 1100 1112 1299
Total industrial solid waste Ton 1948 2311 1819
Solid waste
management
Total recycled/reused solid waste Ton 3048 3423 3118
Solid waste recycling rate % 100 100 100
79Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Society
Issue Indicator Category Quantitative Indicator Unit 2023 Data 2022 Data 2021 Data
Total hours of environmental and work safety
Environmental training
Hour 1802 1705 2207
training and drills
Number of safety drills (fire toxic gas leakage etc.) Time 35 31 28
Number of employees who were injured at work
(minor injury and above) Person 20 22 25
Number of work-related fatalities Person 0 0 0
Work-related injury Number of lost workdays due to work-related injuries Day 353 729 525
Occupational Health
and Safety Incidence rate of occupational diseases % 0 0 0
Lost time injury frequency rate of employees % 3 3 3
Number of suppliers who were injured at work (minor
injury and above) Person 0 1 0
Number of supplier work-related fatalities Person 0 0 0
Supplier safety
Lost time injury frequency rate of suppliers % 0 0 0
Total hours of supplier safety training Hour 237 284 379
80Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Issue Indicator Category Quantitative Indicator Unit 2023 Data 2022 Data 2021 Data
Total training hours Hour 21245 20768 19436
Training participation hours per capita Hour 4.50 4.00 3.50
Total training hours of male employees Hour 12534 12668 11855
Employee t ra in ing
hours
Training hours per male employee Hour 4.50 4.02 3.51
Talent Training and
Development Total training hours of female employees Hour 8710 8099 7580
Training hours per female employee Hour 4.50 3.96 3.49
Total employees who participate in training and
assessment Person 8005 9042 10484
Employee training and
assessment Total employee who passed the assessment Person 8005 9042 10484
Training assessment pass rate % 100% 100% 100%
Total number of employee satisfaction
questionnaires distributed Copy 4974 5596 5553
Employee Survey Employee satisfaction Questionnaire recovery rate % 100 100 100
Employee satisfaction result % 97% 89% 99%
81Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Issue Indicator Category Quantitative Indicator Unit 2023 Data 2022 Data 2021 Data
Overall suppliers Number of suppliers 1338 1333 1324
Raw material suppliers 144 142 139
Equipment suppliers 180 176 168
Supplier category
management Non-production suppliers 211 207 200
Tier 1 suppliers (direct suppliers) 783 790 801
Non Tier 1 suppliers (indirect suppliers) 20 18 16
Supplier assessment coverage rate % 38 37 36
Supplier assessment
Supplier assessment pass rate % 98 98 98
Supplier
Management Percentage of suppliers who have signed the Code
of Conduct for Suppliers % 100 100 100
Percentage of suppliers who have signed
agreements containing the environment and labor % 100 100 100
requirements clause
Number of suppliers who have conducted social
impact assessments 289 284 277
Number of suppliers who have conducted
Sustainable environmental impact assessments
289284277
procurement Number of suppliers who have been identified as
having actual and potential significant negative 0 0 0
social impacts
Number of suppliers who have been identified as
having actual and potential significant negative 0 0 0
environmental impacts
Percentage of the Company’s internal procurement
staff who have passed the sustainable procurement % 100 100 100
training
82Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Issue Indicator Category Quantitative Indicator Unit 2023 Data 2022 Data 2021 Data
Number of patents held pcs 1346 1475 1328
Number of invention patents held pcs 356 394 397
Number of new patents in a year pcs 213 250 289
Intellectual Property Intellectual property
Number of patents under review pcs 565 640 635
Number of copyrights held pcs 0 2 2
Number of trademarks held pcs 106 138 138
Number of confirmed network safety incidents Case 0 1 1
Number of network safety training sessions Session 5 4 2
Network Safety Network safety
Number of network safety emergency response
drills Time 0 0 0
Number of confirmed network safety incidents Case 0 0 0
Social contribution value per share RMB 3.23 2.61 2.36
Public Welfare Investment in public welfare
Investment in social contribution RMB 0’000 38.88 4.99 10.38
83Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
Governance
Issue Indicator Category Quantitative Indicator Unit 2023 Data 2022 Data 2021 Data
Total of corruption incidents under investigation Case 1 0 0
Total of confirmed corruption incidents Case 2 2 0
Corruption incidents Total of resolved corruption incidents Case 2 2 0
Number of personnel involved in resolved
corruption incidents Person 4 2 0
Total of terminations or non-renewals of
contracts with business partners due to Case 2 1 0
corruption-related violations
Anti-Corruption Number of anti-corruption training sessions Session 1 0 0
Anti-Corruption Training
Number of employees participating in anti-
corruption training Person 430 0 0
Number of employees who have signed the
Integrity Commitment Person 451 158 183
Percentage of employees who have signed the
Percentage of employees who Integrity Commitment % 10 3 3
have signed the Commitment
on Code of Conduct Number of suppliers who have signed the Anti-
bribery Committee Person 579 542 498
Percentage of suppliers who have signed the
Anti-bribery Committee % 43 41 38
Number of violations of environmental laws and
regulations pcs 0 2 0
Environmental violations
To t a l f i n e s i m p o s e d o n v i o l a t i o n s o f
environmental laws and regulations RMB (in 0000) 0 4.90 0
Compliance Violations of unfair competitions pcs 0 0 0
Operation Unfair competition Total fines imposed on violations of unfair
competitions RMB (in 0000) 0 0 0
Number of violations of social laws and
regulations pcs 1 2 0
Violations of laws
Total fines imposed on violations of social laws
and regulations RMB (in 0000) 0.20 0.21 0
84Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
GRI Contents Index —“Reporting with reference to GRI Standards”
GRI Standard Disclosure Location
Solex has reported the information cited in this GRI Content Index for the period from January 1 2023 to December 31 2023 with reference to the GRI
Statement of use
Standards.GRI 1 used GRI 1: Foundation 2021
2-1 Organizational details About this Report
2-2 Entities included in the organization’s sustainability reporting About this Report
2-3 Reporting period frequency and contact point About this Report
2-4 Restatements of information About this Report
2-6 Activities value chain and other business relationships About Solex
2-7 Employees Common Growth with Employees
GRI 2: General Disclosures 2021 2-9 Governance structure and composition Efficient and Regulated Governance
2-11 Chair of the highest governance body See the Annual Report
2-16 Communication of critical concerns ESG Management
2-23 Policy commitments About this Report
2-27 Compliance with laws and regulations Efficient and Regulated Governance
2-28 Membership associations Promotion of Industry Exchange
2-29 Approach to stakeholder engagement ESG Management
85Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
GRI Standard Disclosure Location
3-1 Process to determine material topics ESG Management
GRI 3: Material Topics 2021 3-2 List of material topics ESG Management
3-3 Management of material topics ESG Management
GRI 201: Economic Performance 2016 201-1 Direct economic value generated and distributed See the Annual Report
GRI 205: Anti-Corruption 2016 205-2 Communication and training about anti-corruption policies and procedures Anti-corruption and Integrity in Operation
301-1 Materials used by weight or volume Key Performance
GRI 301: Materials 2016 301-2 Recycled input materials used Key Performance
301-3 Reclaimed products and their packaging materials Green Home Co-creation
302-1 Energy consumption within the organization Key Performance
302-3 Energy intensity Key Performance
GRI 302: Energy 2016
302-4 Reduction of energy consumption Energy and Resource Conservation
302-5 Reductions in energy requirements of products and services Energy and Resource Conservation
303-2 Management of water discharge-related impacts Energy and Resource Conservation
GRI 303: Water and Effluents 2018 303-4 Water discharge Energy and Resource Conservation
303-5 Water consumption Energy and Resource Conservation
GRI 306: Waste 2020 306-3 Waste generated Prevention and Control of Three-waste Pollution
GRI 308: Supplier Environmental Assessment 2016 308-1 New suppliers that were screened using environmental criteria Stable Procurement Supply
86Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
GRI Standard Disclosure Location
401-1 New employee hires and employee turnover Key Performance
GRI 401: Employment 2016 401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees Common Growth with Employees
401-3 Parental leave Common Growth with Employees
403-1 Occupational health and safety management system Common Growth with Employees
403-2 Hazard identification risk assessment and incident investigation Common Growth with Employees
403-5 Worker training on occupational health and safety Common Growth with Employees
GRI 403: Occupational Health and Safety 2018 403-6 Promotion of worker health Common Growth with Employees
403-7 Prevention and mitigation of occupational health and safety impacts directly linked by
business relationships Common Growth with Employees
403-8 Workers covered by an occupational health and safety management system Common Growth with Employees
403-9 Work-related injuries Common Growth with Employees
GRI 404: Training and Education 2016 404-1 Average hours of training per year per employee Common Growth with Employees
GRI 405: Diversity and Equal Opportunity 2016 405-1 Diversity of governance bodies and employees Efficient and Regulated Governance and Common Growth with Employees
GRI 414: Supplier Social Assessment 2016 414-1 New suppliers that were screened using social criteria Stable Procurement Supply
GRI 416: Customer Health and Safety 2016 416-1 Assessment of the health and safety impacts of product and service categories Offer of Top-notch Customer Service
GRI 417: Marketing and Labeling 2016 417-1 Requirements for product and service information and labeling Offer of Top-notch Customer Service
87Xiamen Solex High-tech Industries Co. Ltd. Opening Responsible Governance Hand in Hand with Responsibilities for
and Stable Development Society the Green Earth Postscription
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