2023 Sustainable Development Report 1Table of contents
02 About this Report
04 Message from Leadership New Vitality
06 About CR Micro 4 Empower Employees for Mutual Growth
16 Topic 1: Seize the clean development opportunity
and deepen the application of low-carbon 68 Protect Employee Rights and Interests
products
70 Empower Employee Development
18 Topic 2: Protect clear waters and green 73 Implement Employee Care
mountains and take multiple measures to protect
the ecological environment of the Yangtze River
New Journey
20 Sustainable Development Management 1 Gather our Hearts and Minds to Draw a New
Chapter
New Opportunities
28 Regulate Corporate Governance
Activities Join Hands with Partners for
33 Promote Risk Compliance 5 Development
78 Advance Strategic Cooperation
2 New Momentum 81 Safeguard Intellectual Property RightsServe Customers to Share a 83 Establish Responsible Supply ChainsBetter Future
6 New Undertakings40 Product innovation and R&D46 Enhancing the quality control Dedicate to Society Promote 50 Offering high-quality services a Better Future
90 Ensure Safe Production
94 Foster Social Welfare
New Developments 96 Participate in Community Building3 Create Sustainability Through Green Operations
56 Address Climate Change 97 Future Prospects
59 Practice Green Production 98 Appendixes
64 Enhance Green Management02 CR Micro 2023 Sustainable Development Report 03
About this This Report details the practices and performance of China Resources Microelectronics Limited in the fields of economic environmental social and corporate governance Notes to this Report Preparation Process
responsibilities in 2023 aiming to communicate effectively with various stakeholders
Report and systematically respond to the expectations and requirements of stakeholders. For the purpose of presentation and reading this Report This Report is prepared by the following steps: peer also uses such terms as "CR Micro" "Company" and "We" benchmarking questionnaire survey information collection
to refer to "China Resources Microelectronics Limited". The information review report writing management discussion
"China Resources Group" and "Group" used in the Report and review of the board of directors ensur ing the
are the abbreviations of "China Resources (Group) Co. Ltd." completeness authenticity and balance of the content.Other main companies involved in this Report are abbreviated
Reporting Cycle Preparation Basis as shown in the table below.This Report is the third sustainable development report United Nations 2030 Sustainable Development Goals (SDGs)
Standard Reliability Guarantee
made public by CR Micro. Beforehand CR Micro released Full Name of the Companies Abbreviations
eight social responsibility reports. The annual report for the Global Sustainability Standards Board Global Reporting Wuxi China Resources Shanghua Technology CR Shanghua
previous fiscal year was officially released in April 2023. Initiative Standards (GRI Standards) Co. Ltd. The Company guarantees that neither the Report contains
China Resources Microelectronics (Chongqing) Chongqing CR false records or misleading statements nor has any
Co. Ltd. Micro
Chinese Academy of Social Sciences China Corporate Social major omissions and the Company is responsible for the
Wuxi China Resources Ansheng Technology
Responsibility Reporting Guidelines (CASSESG5.0) CR AnshengCo. Ltd. authenticity accuracy and completeness of the contents.Runxi Microelectronics (Chongqing) Co. Ltd. Runxi Micro
Scope of this Report International Sustainability Standards Board IFRS S1 -
General Requirements for Disclosure of Sustainability- China Resources Micro Integrated Circuit (Wuxi) CR Micro Co. Ltd. Integrated
related Financial Information and IFRS S2 - Climate-related
The organizational scope of this Report covers China Xipan Microelectronics (Chongqing) Co. Ltd. Xipan Company
Disclosures Accessibility of this Report
Resources Microelectronics Limited and its main subsidiaries. Jiequn Electronic Technology (Dongguan) Co. Jiequn
Ltd.Shanghai Stock Exchange Rules Governing the Listing
Runpeng This report is available in Chinese and English versions
of Stocks on the STAR Market of the Shanghai Stock Runpeng Semiconductor (Shenzhen) Co. Ltd. Semiconductor and is published in both hard copy and electronic versions.Exchange (Revised in August 2023) and Guidelines No. China Resources Semicon Microelectronics Semicon In the event of any difference between the Chinese and
14 of the Shanghai Stock Exchange on the Application of (Shenzhen) Co. Ltd.
Time Frame English versions the Chinese version shall take precedence. Self-Regulation Rules for Listed Companies - Sustainable Electronic versions in Chinese and English can be obtained
Development Report (Trial) (Draft for Comments)] by visiting the official website of CR Micro (https://www.The time frame of this Report is from January 1 2023 to crmicro.com/responsibilityReport/index.html) or by sending
December 31 2023. To enhance the comparability and China Resources Group Social Responsibility Management an email to crmic_hq_zi_gw@crmicro.com. To minimize
perspectiveness of the Report the time frame is extended to Measures Sources of Data the impact of hard copies on the environment we strongly
the previous year or next year for some contents. encourage readers to download and read electronic copies
whenever feasible.The financial data involved in this Report comes from official
documents and statistical reports of CR Micro. Additionally
the financial data used in the report are expressed in RMB
unless otherwise stated.04 CR Micro 2023 Sustainable Development Report 05
Adhere to the innovation-driven strategy release Meanwhile CR Micro has set up technology research institutes 6. With respect to deepening the ESG concept accelerating for business groups that focus on mainstream applications in the integration comprehensively upgrading top-level logic
the "Chip" power for new productive forces current market in a timely response to market changes. CR Micro and consolidating sustainable development management has a keen insight into market changes from a scientific research CR Micro attaches great importance to the leading role of
perspective and has accelerated its entry into high-quality sectors the ESG strategy and continuously improves the corporate practice the ESG development concept and such as industrial control and new energy sectors. The Company sustainable development management system. Based on the
has completed the verification and assessment of nearly 100 establishment of the "Strategic and Sustainable Development
devote ourselves to the Company's sustainable automotive-grade products with its third-generation semiconductor Committee" the company further upgrades the top-level being put into large-scale mass production and the revenue construction comprehensively and optimizes and integrates
development and long-lasting business from automotive communication and new energy businesses the sustainability development report reporting mechanism. accounting for 70% of its total revenue. Also we actively cultivate Also the company encourages subordinate business groups
and incubate “Specialized and innovative” enterprises focus on to deeply participate in the preparation of the company's report
key nodes of the industrial chain and supply chain and continue and simultaneously pushes the preparation of the sustainable
to gain strong scientific and technological innovation vitality for the development report. Thus it is possible to promote the efficient
concept system proactively pursues high-quality and sustainable development of the semiconductor industry. management of the company's sustainable development work
business development implements the ESG development helping the company achieve a deep integration of sustainable
concept promotes ESG management practices and adheres to 3. As for promoting ecological civilization CR Micro actively development and business operations.the longtermism spirit. Furthermore CR Micro has established a builds itself into an environmentally friendly enterprise and is
corporate image of being socially responsible and environmentally committed to the sustainable development of the company's Making forward-looking goals and shouldering missions.friendly and continuously improving its corporate governance everlasting businesses. By continuing to practice the environmental Chip technology the heart of the modern electronics industrysystem which plays a key role in achieving CR Micro's long-lasting protection concept of “Clear waters and green mountains are and the cornerstone of information technology is the corebusiness success. just as valuable as gold and silver" CR Micro makes great efforts support for promoting the transformation and upgrading
to integrate the green sustainable development concept into all of traditional industries and improving China's "Intelligent
Since 2023 CR Micro has continued to promote and improve aspects of production and operations improves environmental manufacturing" level. Also the chip industry is a strategic
its corporate governance shoulder the mission of technological protection governance mechanisms increases its investment in basic and guiding industry that promotes economic and social
innovation focus on power semiconductors digital-analog hybrid energy-saving technological innovations and optimizes production development. With technological innovation and application
and intelligent control fields supply core chips and provide processes. Also by expanding its presence in the clean energy guiding new opportunities arising from the semiconductor
the underlying technical support for the development of green sector the Company continues to enhance its energy conservation industry are available for use by CR Micro in the current time
industries such as photovoltaic and new energy industries to drive and energy substitution capabilities laying a concrete foundation and trend. Marching into the breadth and depth of technology
the "Dual Carbon" development strategy. Meanwhile we strengthen for the green digital and intell igent transformation of the and shouldering the heavy responsibil it ies for scientific
safety management actively fulfill social responsibilities and take microelectronics industry in the context of the “Dual Carbon” and technological innovations are the responsibilities and
multiple measures to assume the responsibilities of the company strategy. Meanwhile we seize the development opportunity formed accountabilities of all CR Micro employees. Furthermore in-
as a central enterprise. Specifically we have performed operation by the market demand for new energy vehicles to expand our depth implementation of the sustainable development concept
activities in the following aspects: businesses in the domestic automotive-grade chip and charging and scientific outlook on development is the firm consensus and
station industry. We also release new products of IGBT and low- ambition of all CR Micro employees.
1. With respect to the company's high-quality sustainable voltage MOS series power devices helping the semiconductor
development facing the industry cycle fluctuation CR Micro industry become a green and new industry. CR Micro will seriously implement the mission of "Better life
has demonstrated its development resilience to resist the cycle with the CR Micro chip" promote human economic and
fluctuation with its operation performance superior to the 4. With regard to stabilizing the ecological construction of the social development and make technological progress with a
average level of market competitors. By adhering to the IDM semiconductor industry and jointly creating a responsible value determined spirit of moving forward and pursuing constant
business model CR Micro continues to accelerate the adjustment chain as a leading semiconductor IDM company CR Micro self-improvement. Besides the company is committed to
of its product structure and the expansion of its business reach actively links the upstream and downstream industrial chains becoming the global leading product and solution supplier of
in emerging markets achieving coordinated regional economic sticks to the quality-oriented development concept and builds power semiconductor and intelligent sensor. Meanwhile the
development. Also the company continues to deepen its a strong service capability. Hence the company aims to win the company continuously explores new forms of benefiting society
nationwide business layout along the Yangtze River and three trust of customers in the market with excellent quality and dedicated and strives to make new contributions to driving scientific
regions takes major projects as its key points to steadily promote service. By relying on our resource advantages we build an open development promoting social harmony and progress and
the development of new regional productive forces and uses and diversified strategic cooperation platform and an innovation achieving the common growth of mankind and nature.scientific and technological innovations to achieve social progress. consortium to drive the sharing of scientific and technological
At present the main factory buildings of the Shenzhen 12-inch innovation and development results gather the joint efforts of CR Micro also continues to deeply understand and implementDear friends wafer project have been topped out and the Chongqing 12-inch partners and create an efficient and sustainable cooperation model. the ESG concept and in turn uses the ESG concept as the“ softwafer project has been put into mass production. The Chongqing Adhering to the people-oriented principle CR Micro actively creates power” to shape the corporate brand image and promote the
Our ESG concept is in line with the theoretical system of power semiconductor assembly & test base covers advanced
a harmonious development atmosphere between employees and company to practice the “hard principle” of longtermism. With
wafer-level panel-level and module-level assembly processes. The the company. Also the company always protects employees' rights sustainable development that our country has long upheld and respect to ESG CR Micro still constantly deepens theoretical
and interests from infringement continuously improves the salary
attached great importance to over time. The key words for Wuxi work will be built as a mask manufacturing base with leading learning strengthens practical exploration continues exploring
technology and scale across the country. Therefore the company and welfare system and equity incentive mechanism and deepens China's high-quality development "Socialist harmonious society" ESG governance systems suitable for Chinese enterprises fuses
the implementation of the strategy of building a powerful company
"Scientific outlook on development" "Construction of ecological can achieve the first half of the tasks of the "14th Five-Year Plan" the ESG development concept into the context of corporate
civilization in the new era" "Two-mountain (Clean waters and strategy successfully.with talents in the new era. operation and development and enables the company to
green mountains are just as valuable as gold and silver)" concept achieve high-quality and sustainable development. As a high-
and "Common prosperity" all emphasize the basic policy of 2. With respect to technological innovation CR Micro adheres 5. For actively assuming social responsibilities and keeping in tech enterprise that is responsible to society customers
simultaneously seeking economic development together with to an innovation-driven strategy constantly strengthens the core mind the company's original mission and accountabilities rooted employees and partners CR Micro with its unremitting fighting
pursuing social benefits and protecting the natural ecological position of technological innovation in development strives to in society as a responsible and accountable enterprise CR spirit adheres to its innovation-driven strategy releases the
environment. China has promulgated a series of policies in recent enhance the Company's independent innovation capabilities Micro adheres to the concept of a community with a shared “Chip” power for new productive forces practices the ESG
years such as building a green financial system (especially putting steadily promotes its original innovation and integrated future for mankind to focus on helping low-income groups development concept and devotes itself to the sustainable
forward the ambitious "Dual Carbon" goal) which have greatly innovation capabilities and continues to strengthen its core through consumption and education. Also we continuously boost development of the company and its everlasting business!
given impetus to boost the promotion of the ESG concept and competitiveness. By continuously increasing its investment in rural revitalization and drive the growth and reserve of industry
method in China. It can be said that the sustainable development R&D CR Micro aims to constantly improve the incentive system talents. By setting up the "Runshanhui" trade union confederation Thanks
concept lays the foundation for the overall ESG framework and for scientific and technological innovation. The Company also organization and creating the "Yishanxin" public welfare brand and
in turn the ESG concept has become the specific methodology encourages innovation activities tolerates possible failures in the "Nuan' xinhumiao" brand the company is capable of carrying
and point of strength for enterprises to practice the sustainable innovation and deepens the fault tolerance and correction system out a series of public welfare activities such as offering financial aid
development concept. for scientific and technological innovation. By building a reliable to impoverished students and doing tree planting activities. Also
R&D organizational guarantee system CR Micro has set up a the company actively promotes volunteerism duly fulfills corporate
Dr. Li Hong
headquarters technology institute that focuses on the research social responsibilities to jointly create a beautiful and harmonious Executive Director and General Manager of the CompanyAs a China Resources Group's business unit responsible for the
development of the integrated circuit business in the high-tech and development of forward-looking technologies aiming to
society gathers people's love and makes a contribution to society Chairman of the Strategic and Sustainable Development
drawing a new picture of a harmonious and beautiful society.segment CR Micro inherits China Resources' corporate cultural keep its first-mover advantages in cutting-edge technologies. Committee06 CR Micro 2023 Sustainable Development Report 07
Business layout
About CR Micro Power devices MOSFET IGBT SBD FRD SiC Power and GaN
semiconductor
Power IC Power management IC BMS
motor driver IC signal chain etc.Products
and Intelligent Human-computer interaction MCU safety
solutions control MCU and general-purpose MCU
Company Profile
Intelligent MEMS sensors smoke alarm sensors and
sensor photoelectric sensing products
Being subordinate to China Resources Group China and combining regional market and application advantages CR Micro
Resources Microelectronics Limited is a high-tech enterprise the company has optimized resources allocation with its Three 6-inch wafer production lines two
engaged in investment development operation and business scope covering Wuxi Shanghai Chongqing Hong Wafer 8-inch production lines and two 12-inch wafer
production lines
management of microelectronics business. The company Kong Dongguan and Shenzhen. At present the company's manufacturing
has successively integrated some Chinese semiconductor main business can be divided into two business sectors: Manufacturing Assembly & IC assembly device assembly module
pioneering companies such as Huake Electronics China products & solutions and manufacturing & services. The and service integration advanced panel fan-out assembly test and wafer back gold plating
Huajing and CSNC Technology. After several years' of company can independently design products and keep the
development and a series of integration the Company has manufacturing process controllable. In addition the Company Mask Cover 6-inch 8-inch and 12-inch platemaking
become a comprehensive semiconductor enterprise with has possessed strong capability in product technology and manufacturing requirements
great influence in China. Since 2004 it has been continuously manufacturing process in the fields of discrete devices and
rated as top 100 Chinese electronic information enterprises integrated circuits and has formed advanced product lines
by the Ministry of Industry and Information Technology. with special process and seriation.The company was listed on the science and technology In the future the company will take its own core advantages Operation regions
innovation board on February 27 2020 (stock abbreviation improve the core technologies and integrate the internal
“CR MICRO” and stock code “688396”) being the and external resources so as to continuously promote the Yangtze River Delta
first domestic red-chip company. The company is an IDM enterprise development further transform ourselves into a
Domestic holding platforms In the Wuxi region the company semiconductor enterprise capable of the integrated operation comprehensive and integrated product company solutions will build a mask manufacturing
of the whole industrial chain such as chip design mask on power semiconductors and to be the global leader in IC design services base with leading technology
manufacturing and wafer manufacturing assembly & test. power semiconductor and intelligent sensor. IC product design companies and scale across the country as
Wafer and assembly test manufacturing well as build a third-generationAdhering to the business layout of “Yangtze River Delta + Excellentbases (including third-generation semiconductor R&D andChengdu-Chongqing Economic Zone + Greater Bay Area” manufacturing base. Additionally
semiconductors) the company will make use of
High-end mask Shanghai's talent advantages to
Operating Center optimize the existing business
Investment platform framework.Power devices R&D and design Chengdu and Chongqing
center
The company will expand its high-
Power device extension center power device business scale. By
8/12-inch power device wafer focusing on high-end industrial
production lines control and automotive electronics
Big markets the company will build
Power semiconductor module and Yangtze an automotive-grade power
assembly base River Delta semiconductor industry base
Chengdu and and automotive chip industry
Chongqing ecosphere in Chongqing.Product and application industrialization technology
innovation center
Marketing and application service center Greater Greater Bay Area
Sensor R&D center Bay Area The company will build a
Southern headquarters and global innovation center product and application
12-inch characteristic power integrated circuit industrialization technology
manufacturing and R&D base Strong innovation center strengthen
its sensor module and system
solution businesses and
create an advanced wafer
manufacturing and R&D base.CR Micro's nationwide business map08 CR Micro 2023 Sustainable Development Report 09
Corporate Strategy
Organization Structure
CR Micro is affiliated with the Technology and Emerging Industries Division of China Mission
Resources Group. To solve problems encountered in the development process match Better life with the CR Micro chip
the organization structure with its strategic goals meet the expectations and requirements
of the capital market and continuously deepen the reform of the state-owned enterprise
the company benchmarks against leading international semiconductor companies Vision: Become the global leading product and solution supplier of power semiconductor and
integrates its products and manufacturing resources and optimizes the headquarters intelligent sensor
structure promoting the specialized development of the company's product and
manufacturing businesses through platform-based operations.Leverage its IDM advantages and Make a regional layout along the Yangtze
strengthen its product businesses River and focus on development in three
regions
Focus on forward-looking layout and Strategic
master core technologies initiatives
Optimize resource allocation and boost a
Break through the high-end application market leapfrog growth
segment and take the lead in the industry
Create an efficient Introduce supporting Emphasize
organization assessment innovation and Party building Strategic
Guarantee measures and entrepreneurship leading
its business incentives Comply Reshape its Supervision and guarantee
development with market rules corporate culture regulation
Shareholder's
Meeting Strategic and Sustainable
Development Committee
Compliance Audit
Secretary of the Board Board of
Committee
Directors
Nomination Committee
Remuneration and Corporate Culture
General Manager Evaluation Committee
Create a corporate culture that meets the characteristics of the semiconductor industry
Power Device Business Integrated Circuit Foundry Business Assembly and Test Remain true to our original aspiration and keep our mission firmly in mind stand up to the difficulties at Accountabilities
Group (PDBG) Business Group (ICBG) Group (FBG) Business Group (ATBG) critical moments and go ahead in moments of crisis
Innovation and Get rid of the path dependence and break through inertial thinking; take innovation as our engine to
work hard together and inspire each other and leverage our entrepreneurial spirit to push forward
entrepreneurship
transformation and upgrading
Efficient Develop a future-oriented vision and thinking pattern do not bend the rules fully achieve our goals
execution without deduction and stick to the principle of no sooner said than done
Passionate and Boost our spirit and energy keep our sense of urgency step out of our comfort zone face challenges
hard-working and define ourselves through hard working
Party-masses Working
Audit Department
Department
Inspection Office
Discipline Inspection
Department
Legal Compliance
Department
Finance Department
Intelligence and
Informatization Department
Human Resources
Department
Environment Health and
Safety Department
Strategic Development
Department
Marketing Department
Manufacturing Center
Operating Center
Office of the Board Technological Research
of Directors Institute10 CR Micro 2023 Sustainable Development Report 11
Honors in 2023
Award name: Award for “Green Factory” Award name: Award for A-rating Evaluation of Information
Demonstration Enterprises Disclosure in 2022-2023
Awarding Awarding
organization: Chongqing Economic and organization: Shanghai Stock Exchange
Information Technology
Commission
Award name: Outstanding Entrepreneur Award
for Strengthening Cities by Industry
Awarding Award name: Investor Relations Tianma Award
organization: Jiangnan Evening News Award name: Award for Outstanding Award name: Award for 2023 Corporate Governance "Best
Awarding Enterprises in Jiangsu Province Practice Cases"
organization: Securities Times Awarding Awarding
organization: Jiangsu Provincial People's organization: China Association for Public Companies
Government
Award name: Best Practice Award for Stabilizing
the Growth
Awarding Award name: Award for "Jinwutong" Most Socially
organization: China Resources Group Responsible Listed Companies Award name: Award for Environmental
Awarding Dimension of ESG Management
organization: China Industrial Cooperation Association System Conference - Excellent
Cases
Awarding
Award name: Gold Prize of the Scientific organization: China Times
and Technological Innovation
Achievement Award
Awarding
organization: China Resources Group Award name: Award for Most Valuable Award name: Award for "Shared Development
Listed Companies in Enterprise" Cases of Shanghai
Science and Technology Corporate Social Responsibility
Innovation Board Conference
Award name: Industry-University-Research Awarding Awarding Award name: Award for Innovative
Institute Collaboration Innovation organization: Science and Technology organization: Shanghai Federation of Enterprises of the Year
Achievement Award Innovation Board Daily Awarding
Awarding Economic Organization and organization: YICAI
organization: Industry-University-Research Shanghai Federation of Industrial
Institute Collaboration Association Economics
Award name: Award for Specialized
Refined and Innovative
Award name: Award name: Award for Corporate Governance - Jiangsu Province Enterprise “Little Giant” Award name: Award for Innovation
Best Practice Cases
Technology Innovation Award Enterprises Awarding Pioneer EnterprisesAwarding Awarding Awarding China Association for Public
organization: Jiangsu Provincial People's organization: organization: Ministry of Industry and organization: Nanfang Metropolis Companies
Government Information Technology Daily
January February April May June July September October November December
Award name: Award for Technology Leading Enterprises in 2023 Award name: Award for ESG Governance Pioneers
Award name: Award for 2022 Wind ESG Award name: The 24th China Patent Award name: Award for Qingxin 2023 Green Science and Technology Innovation Board
Industry Best Practices Excellence Award Practice Pioneer Project Awarding Awarding
Awarding Awarding Awarding organization: Caijing Magazine SMDC organization: Zerenyun Research Institute
organization: Wind organization: China National Intellectual organization: National Business Daily
Property Administration
Award name: Award for National Intellectual Property
Advantage Enterprises
Award name: 2023 Science and Technology Innovation Board Awarding
Award name: Environmental Protection Leading Figure organization: China National Intellectual Property
Contribution Award Awarding
Awarding Administrationorganization: Caijing Magazine SMDC
organization: Xinwu District Ecological
Environment Bureau
Award name: Award for Information Disclosure
Outstanding Companies
Award name: Award for Production Safety Awarding
organization: Wuxi Association for Public CompaniesDemonstration Enterprises
Awarding
organization: Xinwu District Emergency
Management Bureau12 CR Micro 2023 Sustainable Development Report 13
Events in 2023 - CR Micro in 2023
January 17 March 31 July 2 August 11
CR Micro held a summary meeting for the completion of the The Chongqing Postdoctoral Management Office held CR Micro's first automotive-grade chip CS3629BB passed the The CR Shanghua's latest generation of 0.15 μm 40V BCD
12-inch power semiconductor wafer production line in its the 2023 Postdoctoral Salon event themed "Building the AEC-Q100 automotive-grade chip assessment certification. process platform was officially debuted. This process platform
Chongqing Park. A ceremony for putting the production line Future". As the only semiconductor company among the 16 CR Micro is accelerating the perfection of its automotive- focuses on high-power power management chips and motor
into mass operation was held at the meeting. Additionally companies Chongqing CR Micro was awarded the title of grade electronic product system and will constantly introduce control chips and is used in PMIC applications such as fully
12 outstanding suppliers were prized. Meanwhile CR Micro "National Postdoctoral Research Workstation". high-quality products in the automotive market. integrated motor drives and high-performance DC-DC.
announced strategic cooperation with customers.September 15
July 11-13
The Shenzhen 12-inch Runpeng Semiconductor Project
CR Micro showcased its products at the 2023 electronica Investment Agreement signed by and between CR Micro
China. and external investors was approved by the shareholders'
meeting. The external investors introduced this t ime
include 12 institutions such as the China Integrated Circuit
Industry Investment Fund Phase II the Shenzhen Municipal
Government Investment Platform and the China State-owned
Enterprise Structural Adjustment Fund Phase II with over
January 21 RMB 10 billion raised.April 17-19
On New Year's Eve the management of CR Micro and the
heads of relevant functional departments visited colleagues The 25th China Integrated Circuit Manufacturing Annual September 18
working in various workshops chemical warehouses duty
Conference and Supply Chain Innovation Forum themed
rooms dormitories and guard rooms and extended their bestwishes for the Spring Festival to them. “Building a New Pattern for Chip Development and Foster The CR Micro's Fourth Science and Technology Conferencea New Development Stage” was held in Guangzhou. Dr. Li with the theme of "With the CR Micro's Chips Dream Our
Hong General Manager of CR Micro as a specially invited Future and Create Our Glory" was successfully held in Wuxi
entrepreneur delivered a wonderful speech titled Promising in which outstanding scientific and technological personnel
Future for the Development of the New Energy Industry; were prized for their outstanding performance in 2022 and
Steady Progress in the Power Semiconductor Field. major scientific and technological achievements in the past
July 25 three years.June 17-18 The Wuxi factory of the ATBG held a ceremony for putting
the nitrogen production center into operation. This project
greatly increases the stable supply of nitrogen gas to the Wuxi
The Second Nansha International Integrated Circuit Industry factory and also reduces nitrogen consumption costs laying
Forum was held in Guangzhou. As a specially invited a concrete foundation for the company to continuously push
entrepreneur Dr. Li Hong General Manager of CR Micro forward cost reduction and efficiency improvement.March 6 gave a keynote speech titled Harnessing the Power of 'Chip'
to Foster Prosperous Ecosystem for Integrated Circuits in the
Greater Bay Area.CR Micro held the celebration event for the third anniversary of
being a public company listed in the science and technology August 9-11
innovation board themed "Start Our Chip Business Together"
and 2022 project appraisal and commendation event. Over The 2023 Integrated Circui t (Wuxi) Innovat ion and
the three years since its going public on the science and Development Conference was held in Wuxi Jiangsu Province.technology innovation board the company saw rapid growth in Dr. Li Hong General Manager of the company attended
its performance and high-quality development. The company's the opening ceremony of the main summit and delivered a
management awarded honorary awards to the award-winning wonderful keynote speech titled Leading with 'Chip': New
teams. Patterns in the Development of the Semiconductor Industry
Chain at the Semiconductor Equipment Annual Conference
and Industry Chain Cooperation Forum.14 CR Micro 2023 Sustainable Development Report 15
September 21-22 October 30-November 1 November 10-11 December 7
The 2023 China (Shenzhen) Integrated Circuit Summit was The industry event electronica SouthChina was held at the The integrated circuit industry event ICCAD 2023 themed CR Micro successfully held the 2023 Investor Open Day and
held in Shenzhen Guangdong. Dr. Li Hong General Manager Shenzhen World Exhibition & Convention Center (Baoan New "Work with you in the Greater Bay Area Create a prosperous New Product Release Meeting in Chongqing. The event wasof CR Micro was invited to attend the Semiconductor and Hall). CR Micro made a splendid appearance by showcasing future for the chip industry" was held in Guangzhou. CR Micro themed “Chase the dream in the chip industry and createIntegrated Circuit Summit Forum and delivered a keynote its power device products and modules intelligent sensors showcased its wafer manufacturing and mask manufacturing our chip future". The company's management and product
speech titled "Pooling innovation and application advantages supporting system solutions and other products. capabilities to the guests. line leaders had in-depth communication and exchange with
to promote high-quality development of the integrated circuit investors and analysts from all over the country.industry."
November 8-10 November 25
October 10
The first domestic Energy Electronics Expo was held at The Chongqing Integrated Circuit Industry Development
Summit Forum was successfully held in Yuzhou Chongqing.The main structure of the CR Micro Runpeng Semiconductor's the Zhuhai International Convention & Exhibition Center
in Guangdong. The PDBG of CR Micro focuses on the As a specially invited entrepreneur Dr. Li Hong General 12-inch integrated circuit production line project located in
new energy and automotive electronics fields and made a Manager of CR Micro delivered a keynote speech themed Greater Bay Area Chip Valley Baoan District Shenzhen
splendid appearance by showcasing a series of power device Bringing Intelligence to Chip Development: Constructing the covering 17 production systems 11 production buildings and
Chip Ecosystem to the guests.
4 supporting buildings completed overall roof sealing. products and solutions.16 CR Miicro 2023 Sustainable Development Report 17
Gain a Momentum to Create Multi-dimensional Efforts to The DSCQFN double-sided heat dissipation
Topic 1 Low-carbon Competitiveness in assembly technology developed by the company Release a New Momentum for achieves lower assembly resistance enhances high Products current capability and low assembly inductance Green Development
and increases product switching speed. Compared
with the standard PPAK (Ribbon bond) assembly Stimulated by the market demand for new energy vehicles the
CR Micro takes the promotion of advanced product layout as its core technology the DSCQFN assembly technology automotive-grade chip industry is facing new opportunities and
development strategy and relies on the technology and experience is able to reduce the thermal resistance by about challenges. CR Micro actively extends its business reach to the green
accumulated in the manufacturing process of upstream components 28% the assembly resistance by 95.5% and the mobility sector and insists on making efforts in system construction
in the field of new energy applications to effectively support its assembly inductance by 91.7%. product upgrading industry cooperation market expansion and other
transformation and development. The company's SiC MOSFET aspects simultaneously being committed to serving the green mobility
Seize the clean devices Cu Clip assembly technologies and IPM intelligent power industry.modules play a vital role in supporting the development of products in The special process developed by the company
the new energy application field. In 2023 the company's technologyincreases the process efficiency by 5 times as Driven by "independent research and external expansion” the
development research and development in the new energy field has achieved against the current efficiency level achieving company already has complete SiC and GaN product series with significant progress giving momentum to the global clean energy energy conservation emission reduction and technology research and development being mature and stable and
transformation process.green production. products having industry-leading performance across the industry.opportunity Relying on the existing 6-inch and 8-inch wafer workshops and advanced assembly and test bases and with the support of senior
Third-generation Semiconductor R&D and power device teams the company has sufficient production capacity
and deepen Applications in the Green Field and has established long-term cooperative relationships with many Intelligent Power Modules to Promote Low- auto makers. In addition the company intensifies its customer
The third-generation wide bandgap semiconductor material carbon Technology Innovation development efforts in new energy fields such as photovoltaic inverters
the application represented by silicon carbide (SiC) embodies superior properties such and frequency converters. The company's operating revenue from the as lower power consumption and higher switching frequency in high- IPM is an important component of the frequency conversion new energy fields sees an increasing proportion in the products and
voltage and high-power power conversion applications. In addition controller which in turn is the core component used for the frequency solutions sector. The company's products are successfully installed in
of low-carbon such material well known as one of the most promising semiconductor conversion control of white home appliances. In the overall context the products manufactured by Sungrow Deye Inovance Group and materials in the power electronics field presents a rapid development of energy conservation emission reduction and green environmental other key customers.trend. protection a higher energy efficiency standard for home appliances
products results in higher market requirements for the function energy SiC MOSFET devices are the mainstream devices for SiC applications consumption volume weight and reliability of IPM. On the other hand The proportion of CR Micro's own products in the pan-new energy field
and are mainly used in high-power density and high-frequency with the rapid growth of IPM demand in such fields as electric vehicles
applications such as automobiles solar energy power grids and and photovoltaic wind power the requirements for the stability and
base stations. The company initiated the advanced research and reliability of IPM performance are gradually increasing. 11%
development of SiC MOSFET devices in 2020. By adding special Communication
process development equipment to the existing SiC JBS wafer After many years of continuous R&D investment the company's IPM equipmentIn response to the urgent challenges of global 39% production line the company developed key processes and built product line has covered low-power full-bridge IPM low-power half- Pan-new
climate change and environmental degradation basic technical capabilities and a research and development platform bridge IPM and medium-to-high-power IPM. On the basis of the low- energy field
the development of clean technologies can reduce forming complete technologies. Through project implementation the power IPM product design and development platform the company
the impact on the environment and improve company accomplished the development of the first-generation SiC continues to strengthen the building of key platforms for IPM modules. 16%
MOSFET products built the first 6-inch SIC production line in China
resource use efficiency which has become an During the reporting period the company launched a company-
Industrial equipment
and forged a planar SiC MOSFET wafer process platform and a level major project "Research and development of medium-voltage (electronic
important strategic direction for modern enterprises assembly and test platform. high-power IPM intelligent power modules." The purpose is to equipment and IoT
to achieve their green growth and fulfill their social reduce the product size lower product energy consumption and equipment) 34%
responsibilities. CR Micro knows deep down that enhance product market competitiveness on the premise of meeting Consumer
the development of semiconductor technology performance requirements. electronics
is an important driving force for creating a green The company actively expands its businesses in
and low-carbon society. CR Micro makes an in- high-end application fields such as automotive
electronics develops the SiC MOSFET G2 Integrating an MCU with a motor engine
depth exploration of the application of low-carbon platform and completes product solidification in enables the module to have higher In December 2023 the company launched new IGBT and low-
voltage MOS series power devices as well as new integrated
products and continues to develop low-carbon 2023. Furthermore the company has completed flexibility and higher programmability.Meanwhile the high level of integration circuit products including safety MCU IPM and high-voltage
products and optimize production processes the serialization of a total of 7 products produced optocouplers.by the 650V/1200V voltage platform with the makes the module smaller in volume
laying a solid foundation for the green digital and product parameters and performance being and offers convenience for meeting the
intelligent transformation of the microelectronics up to that of the international mainstream third- client's high-density design requirements.industry in the "Dual Carbon" context. generation SiC MOSFET products.Applications: plastic-sealed motors
etc. It adopts high- and low-side drive
control and has built-in undervoltage
For SiC modules that are useful in the electric protection. It is highly cost-effective and
drive of new energy vehicles the company pushes small in volume making it more suitable
technology research and development and Fully integrated for the current miniaturization trend in
expands its product layout. low-power application fields.IPM module
CS12XMM65 Applications: plastic sealed motors etc.Advanced Cu Clip assembly technology to
drive green production It adopts high- and low-side drive control
and has built-in undervoltage protection.It is highly cost-effective and small in
Assembly is one of the core processes of power modules. The volume making it more suitable for the
company has developed and built seven major process platforms: current miniaturization trend in application
PDFN DSCQFN Dr.MOS 6X5 PPAK (T0.9)LFPAK Dr.MOS 5X5 fields. In the future the company will continue to provide continuously
and PPAK Clip and Wire; and three power device assembly Medium-power optimized solutions for products in clean energy applications such as
technology platforms that focus on different customers' requirements IPM module Application: air conditioning compressor variable-frequency home appliances and new energy vehicles further
for assembly processes realizing the improvement in both the electric tools etc.DPM15C60FG2 improving energy efficiency.performance and efficiency of power device products.Effectiveness Efficiency
improvement improvement
Progresses and
achievements18 CR Miicro 2023 Sustainable Development Report 19
Improve the system and Special Rectification to Effectively Control Engineering Transformation to Improve Topic 2 strengthen operation and Phosphorus Emissions Quality and Effectivenessmaintenance management The rainwater and sewage diversion system in the factory area was By adhering to the environmental priority and sustainable development
comprehensively renovated and transformed thoroughly solving concept CR Shanghua a subsidiary of CR Micro does a good job
Improving water quality is a long-term systematic project. Through strict the leakage problem of domestic sewage pipelines in the factory in improving the wastewater treatment system through a series of
implementation of the Overall Plan for Comprehensive Management of area. The company built an initial rainwater collection system to transformation measures such as eliminating and renovating old
the Water Environment in the Taihu Basin Action Plan for the In-depth effectively reduce the total phosphorus emission concentration at equipment optimizing and upgrading processes enhancing the
Protection and Restoration of the Yangtze River Three-Year Action the rainwater discharge outlets. Meanwhile the company has set stable operation level of the wastewater system and improving the
Plan for Promoting Fundamental Improvement of Water Quality in up rainwater collection troughs inside the entrances and exits of all efficiency of treating pollution factors. Meanwhile an optimized dosing
Protect clear Taihu Lake and Wuxi Waters (2023-2025) and other plans CR Micro production workshops and warehouses in the plant area and built system and an online monitoring system were provided to ensure continuously improves relevant environmental management systems a new emergency tank with a capacity of 1224 m3. This ensures safe reliable and technologically advanced wastewater treatment
and strengthens operation and maintenance management of the that the emergency water in the contaminated area is sent through and to ensure that the concentration of pollutants in the discharged
waters and green water projects from the top-level building. This guarantees that sewage the collection troughs to the newly built special drainage pipe for wastewater is significantly reduced.treatment projects can achieve their maximum benefits. Also the emergency water and then discharged into the newly built emergency
company can do a good job in the tough battle against protecting the tank in the plant improving emergency response capabilities and
mountains and Yangtze River water ecology with higher standards and greater efforts. fulfilling environmental protection requirements.take multiple Build an environmental protection facility archive to record the operation and maintenance of environmental protection Emergency Plan to Deal with Phosphorus Protect the Clear Waters to
facilities and ensure the normal operation of the facilities. Leakage
measures to Draw a Picture of a Clean and The company carries out regular leakage emergency drills for the Vibrant Environment.Record pollution source monitoring data and regularly leakage of waste phosphoric acid storage tanks to enhance its
protect the publish monitoring data to help government environmental ability to deal with emergencies. In 2023 the company updated the protection departments and company management The Yangtze River keeps flowing day and night like an ever-lasting emergency plan for environmental emergencies and worked out a
departments understand pollutant emission information in a song. CR Micro will move forward with firm steps and take more special phosphorus-related emergency plan for phosphorus pollution
ecology of the timely manner. pragmatic measures to shoulder the responsibility for ecological risks. civilization and ecological environment protection. The company will
stay focused on and make precise and sustained efforts in sewage
Formulate regulations on environmental protection rewards treatment. The company also continues to cultivate the green concept
Yangtze River and punishments and reward those who have made in pursuing high-quality development aiming to consolidate and outstanding contributions in protecting environmental improve the effectiveness of Taihu Lake environment management.protection facilities saving energy reducing consumption Furthermore the company works with enterprises along the river to
and improving the environment. do a good job in implementing the "Yangtze River Protection" policy
that benefits future generations creating a beautiful and picturesque
Green is the most breathtaking background color riverside environment where mankind harmoniously coexists with
Establish a monitoring system and provide online monitoring Photo of the Taihu Basin taken by the CR Micro Trade Union nature.of the Yangtze River and the protection of the facilities at volatile organic compound discharge outlets Photographic Association
Yangtze River is to firmly maintain this kind of and industrial wastewater discharge outlets to realize online
background color. The trunk stream section of the wastewater monitoring; entrust qualified environmental
Yangtze River in Jiangsu and the Taihu Lake basin monitoring agencies to conduct effective verification and
lie in the plain in the lower reach of the Yangtze supervision management making the pollutant treatment
process compliant with regulations.River and are an important area of the Yangtze
River Delta. The phosphorus-containing wastewater
produced by industrial enterprises along the lake
and river is one of the main pollution sources
leading to river water pollution. Take Multiple Measures to
Improve Water Quality and
CR Micro is well aware of the importance of Water Control Effectiveness
protecting rivers lakes and other waters in the
ecological environment. The company actively Phosphorus-related materials are required in the daily production and
responds to and implements the call of the Party operation activities in CR Micro's factories. The company is deeply
Central Committee and the Wuxi government on aware of the importance and urgency of strengthening the treatment
of phosphorus-containing wastewater. By carrying out phosphorus-
the protection of the Yangtze River and shoulders
related rectification projects we can effectively reduce and control
the responsibility for protecting the ecological phosphorus-related emissions and respond to phosphorus leakage
environment of the Yangtze River Basin. Also events reducing total phosphorus pollution emissions.the company insists on ecological priority and
green development and boosts the high-quality
development of the Yangtze River economic zone. Phosphorus reduction is controlled from the
source of raw and auxiliary materials
By actively replacing phosphorus-containing raw materials and
adjusting phosphorus-related processes the company can strictly
control the procurement transportation and storage processes of
phosphorus-containing raw materials and auxiliary materials on the
basis of not reducing product quality. As a result it is possible to
reduce the use of phosphorus-containing raw and auxiliary materials
and reduce total phosphorus emissions.20 CR Micro 2023 Sustainable Development Report 21
Sustainable Development Responsibility Planning
Management To achieve higher-level and higher-quality development the company on the basis of reality studies and works out social company integrates its social responsibility into the processes responsibility development goals builds a social responsibility
of corporate development strategy formulation daily business framework and an institutional system and plans a focused
operations and functional management. Besides the and practicable social responsibility implementation path.Build a Responsible Organization
Responsibility Strategy Stage I Stage II Stage III
20232024-20252026-2030CR Micro always shoulders the mission of “Better life with a central government-owned enterprise with its strength. (Comprehensively introduce (Systematically promote the (Consolidate the company'sthe CR Micro chip”. By adhering to the vision of “becoming systems and lay a concrete reporting mechanism and leadership in the industry and buildthe global leading product and solution supplier of power We actively carry out the six major strategies for social foundation) pursue quality improvement and an excellent benchmark)
semiconductor and intelligent sensor" and practicing the responsibility and on the basis of expanding and optimizing upgrading)values of “Honesty and trustworthiness performance our main businesses pursue the matched economicorientation people orientation and win-win cooperation" the social and environmental benefits building a sustainable Improve the sustainable development Form a mature reporting mechanism Conduct all-round communication with
company takes the initiative to assume social responsibilities development brand image for CR Micro. governance framework and for business groups giving them the all stakeholders make sustainable
deepens ESG practices and manifests the responsibilities of supporting working systems mature ability to prepare sustainable development deeply integrated into the
formulate a sustainable development development reports. Individual company's operation management
indicator system and management departments/business groups will business processes and corporate
mechanism encourage business clearly define their positions and goals culture. As a result this results in the
groups to participate in sustainable in sustainable development activities company's sustainable development
development activities and lay a and conduct sustainable development being ranked among the first-class
Fulfill financial Fulfill customer foundation for CR Micro to unify and activities in an orderly manner. (From advanced semiconductor companies
responsibilities responsibilities
deepen ESG understanding. 2023 to 2024 the company's business in the country. Also a sustainable
Create a valuable CR Micro Build a satisfactory CR groups prepared sustainability reports development brand will be built
Micro independently.) with widespread influence forging
Create optimal corporate
value Gain satisfaction and trust sustainable development leadership.with a true heart
Responsible Responsible
for for Responsibility System
shareholders customers
In the process of promoting social responsibility management the company continuously promotes the institutionalization
the company regards system construction as an important standardization and normalization of the company's
Fulfill employee Fulfill partners' means to improve the level of implementation of the social sustainable development activities enhancing the company's
responsibilities responsibilities
Responsible Sense of Responsible responsibility system. By establishing improving and gradually social responsibility management level quality and efficiency.Build a people-oriented CR for Responsibility for Build a win-win CR Micro optimizing specifications for the social responsibility system Micro employees partners
Create a new win-win
Guarantee happy working development pattern
and living
Social responsibility system Carry out a
Responsible Responsible responsibility
for for construction framework evaluation to promote continuous
environment the public improvement
Fulfill environmental Fulfill public responsibilities Build a responsibility indicator system and form a
responsibilities standardized scientific assessment tool
Build a harmonious CR
Build a green CR Micro Micro
Social responsibility special Responsibility implementation and
Create a green and Promote harmonious social management system assessment system
ecological civilization development
Basic management system Responsibility supervision system22 CR Micro 2023 Sustainable Development Report 23
Responsibility Organization Promote the Integration of Responsibilities
An efficient and collaborative organizational system is an In April 2023 the original "Strategic Committee of the Board
essential guarantee for promoting social responsibility of Directors" was changed to the " Strategic and Sustainable Responsibility Issues
system. The company actively improves the ESG governance Development Committee of the Board of Directors"
structure and on the basis of the existing social responsibility adding the authority requirements for researching and
management structure perfects the management levels making recommendations on the company's sustainable To deeply understand the stakeholders' appeals enhance the progress of CR Micro the company has established a
and div is ion of labor forming an ESG governance development/ESG-related policies. pertinence and responsiveness of the report and accurately standardized issue identification and assessment process to
system composed of a two-level structure including the highlight the sustainable development performance and construct a matrix of substantive issues define key issues
management level and the executive level. and disclose them in the report.CR Micro's substantive issue identification and assessment process
Coordinates and leads sustainable development and Issue identification Issue analysis Issue assessment
ESG-related activities within the company conducts
research on relevant policies and makes appropriate
The Board of recommendations; reviews the company's reports on B y s t u d y i n g t h e m a c r o e c o n o m i c The company develops and publishes On the bas is o f the resu l ts o f the
Directors development trend analyzing industry a questionnaire on substantive issues questionnaire survey we further analyzed
Decision-making sustainable development and ESG matters. policy trends investigating national and to understand the degree of concern of and sorted out the importance of major
level international standards for preparing social internal and external stakeholders for the issues and then selected the core issues
responsibility reports and benchmarking major social responsibility issues initially that were of high concern to stakeholders
outstanding practice cases in the same identified and screened. In 2023 a total and closely related to the company's
industry we identify and screen out key of over 500 valid questionnaires were sustainable development. Therefore
Formulates the company's sustainable development and substantive social responsibility issues collected for the company's questionnaire these core issues were regarded as the
that are of high concern to the company's on substantive issues reported in the key content disclosed in the sustainability
Strategic and Sustainable plans and responds to all responsible departments and stakeholders. company's sustainable development report.Development Committee business groups forming a sustainable development report.Executive level working system centered on the green and low-carbon
concept.
4.7
Management Body Main Responsibilities
4.623132422
4.521
12
4.4141619
2025
Nomination 15
Committee 4.3
6111728
4.2410
Compliance Audit Remuneration and 7 9 18
Committee Board of Directors Evaluation Committee 4.1 5 26 27
3
482
Strategic and Sustainable Development Committee 3.9
3.8
E S G 3.8 3.9 4 4.1 4.2 4.3 4.4 4.5 4.6 4.7Importance to the Sustainable Development of CR Micro
Carbon Neutrality Team Human Resources 1 Environmental 8 Strengthen risk 15 Provide high-quality 22 Water pressure Department Office of the Board of management system management products and services managementDirectors
Help rural Business ethics and anti- Improve customer Clean technology
Operating Center Technological Research Legal Compliance revitalization
9 corruption 16 satisfaction 23 opportunities
Institute Department Conduct public welfare Strategic cooperation Intelligent manufacturing Promote energy conservation
3 charity activities 10 mechanism and platform 17 and digitalization 24 and emission reduction
Environment Health and Intelligence and Discipline Inspection
Safety Informatization Department Department/Inspection Office Energy management Industry development Technology R&D and Occupational health and 4 system 11 leadership 18 innovation 25 safety
Manufacturing Center Trade Union Audit Department Protect ecological Strengthen corporate party Controversial procurement Implement employee care 5 safety 12 building 19 management 26 activities
Improve corporate Intellectual property Create a responsible Perfect compensation and
6
Finance Department governance
13 protection 20 supply chain 27 benefits system
Compliant and Information security and Cope with climate Smooth career development
7 legitimate operation 14 privacy protection 21 change 28 channel
Importance to Stakeholders24 CR Micro 2023 Sustainable Development Report 25
Responsibility and Capacity Strengthen Responsibility Stakeholders' appeals and CR Micro's response
Communication
The company continues to promote responsibility assumption
By establishing diversified communication mechanisms and
and capacity building to provide strong support for the
channels the company on the basis of its actual business Stakeholders Topics of concern Communication methods and practices
implementation of corporate social responsibility. The
operations disseminates the company's responsibility concept
company organizes the functional departments of the
and responsibility performance dynamics and enhances
headquarters the responsible departments of subsidiaries Conducting business with integrity and
stakeholders' understanding of and support of the company. Complying with laws and regulations compliance
and the EHS departments to conduct special propaganda
We set up a "Social Responsibilities" sector on our official Government and
and education and awareness training activities on ESG Paying taxes in accordance with the law. Diligently paying taxes in accordance with the regulatory agencies
website and promptly disclose the company's ESG-related law
concepts key issues and risk management aiming to Supporting local development
information or up-to-date events information on our official
improve the comprehensive quality and ability of employees Responding to major government policies
WeChat platform and mainstream media websites to enhance
that conduct social responsibility activities. Additionally the
stakeholders' understanding of and support to the company.company organizes and encourages workers to participate in
internal and external social responsibility exchange activities Improving corporate governance Improving governance structure
and find shortcomings by benchmarking good practices in Shareholders and Protecting interests and rights of investors Standardizing the operation of three meetings
responsibility management within China Resources Group The social responsibilities sector on the company's investors Ensuring fair access to information
and other outstanding companies. Ensuring a compliant disclosure of informationofficial website
In 2023 on the basis of the establishment of the "Strategic
and Sustainable Development Committee" the company About Us Promoting innovative research and
further comprehensively upgraded its top-level construction. Meeting diverse needs development
By working with subordinate units sticking to the principle of Ensuring product quality Enhancing quality management
"from existence to excellence" and optimizing and integrating Customers
Providing excellent services Ensuring service quality
the sustainability report preparation mechanism the company
mobilized various subordinate business groups to explore Company Profile Enhancing customer satisfaction Safeguarding a timely response and resolution
of customer demands
excellent materials and deeply involve in the preparation of
company reports. Also business groups made sustainable Corporate Culture
development reports independently to show their highlights
and responsibilities. This is an initial move and a good start Establishing sound supplier management Social Responsibility Supply chain management mechanisms
to promote the integration of corporate responsibilities and
boost the quality and efficiency of sustainable development Adhering to business ethics Engaging in transparent procurement
ESG Governance Framework Suppliers and
activities. industry Integrity and mutual benefit Promoting win-win partnerships
Promoting industry development Participating in industry exchanges and
ESG Strategy collaborations
Preparation of 2023 Annual
Responsibility Reporting
Sustainable Development Report of
CR Micro Optimizing labor managementProtecting employee rights and interests
Responsibility Concept Improving career development system
Supporting employee growth
Employees
1 report at the corporate level Concerning for occupational health and safety Responsibility Report Ensuring health and safety of employees
+ Balancing work and life Enriching employee activities
Contact Us
4 independent reports for each business group
Sustainable Development Report of CR Micro (to Actively engaging with the community Implementing public welfare projects
be publicly released)
In 2023 we continued to improve our diversified internal Community Participating in volunteer activities Promoting rural revitalization
Sustainable Development Report of the FBG CR and external communication platforms maintain an open Assisting disadvantaged groups Establishing volunteer service teams
Micro mind conduct in-depth research on issues of concern to
Sustainable Development Report of the ATBG CR the government investors customers employees partners
Micro communities environmental agencies and other stakeholders
Sustainable Development Report of the PDBG CR listen to their expectations and appeals and incorporate Environmental management
Environmental monitoring
Micro relevant opinions into the company's decision-making process Water resource utilization Practicing energy conservation and emissions
Sustainable Development Report of the ICBG CR and transform them into corporate social responsibility action
Environment reduction
Low-carbon and energy-saving initiatives
Micro goals and plans. Promoting green and low-carbon development
Ecological conservation Advancing resource conservation26 CR Micro 2023 Sustainable Development Report 27
Our Performance
w Journe
y Operating Income Total profit
Ne Unit: RMB 100 million Unit: RMB 100 million
our Heart
s and
Gather aw a New
100.6099.01
92.49
Minds to
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pter s
hip
ha of party le
ader
C integrationnic roves internal
to the o
rga ly imp ghts
es s ri
ro adher nce co
ntinuou nance su
bject
ic a ver n 23.54 26.53CR M n orate gove
r
daries of
g
n and su
pervisio
and cor
po e boun structio nance
16.87
ance cla
rifies th m con gover
overn carries o
ut syste of corpo
rate lity
g ua
ponsibiliti
es vel igh-q
d res enhance
s the le h
n t driving fo
rce for
a gemen trinsic 2021 2022 2023 2021 2022 2023
of risk m
ana in
nd activa
tes the
eration aop
developm
ent.Action
s: Equity attributable to owners of the
Our parent company
Corpor
ate
Unit: RMB 100 million
Regula
te
Activiti
es
vernan
ce
Go 215.58
isk 199.81
mote RPro iance
Compl
DGs: 172.90
Relevant
S Net profit attributable to owners of the
parent company
Unit: RMB 100 million
22.6826.17
14.79
2021 2022 2023 2021 2022 202328 CR Micro 2023 Sustainable Development Report 29
Regulate CR Micro continuously improves its corporate governance structure strengthens the Shareholder's construction of the Board of Directors attaches importance to information disclosure Meeting Strategic and Sustainable
Corporate aggregates strength to enhance management efficiency and continuously promotes
Development Committee
the modernization of the governance system and governance capabilities. We are
Compliance Audit
determined and steady on the path of high-quality development.Governance Secretary of the CommitteeBoard of DirectorsBoard of Directors
Nomination Committee
Activities
Remuneration and
General Manager Evaluation Committee
Improve Governance System PDBG ICBG FBG ATBGThe Company continuously improves the legal governance effective checks and balances” in managing the three
structure and operational mechanisms composed of the meetings. The Board of Directors of the Company has four
Shareholder's Meeting the Board of Directors and the special committees to provide consultation and advice for
management of the Company. It operates a standardized major decisions by the Board of Directors ensuring thesystem based on the three meetings by “the Shareholder's professionalism and efficiency of the Board's discussionsMeeting the Board of Directors the Special Committee and decisions. Independent directors and the secretary ofof the Board of Directors” respectively adhering to the the Board of Directors effectively enhance the fairness andgovernance principles of “statutory and transparent reasonableness of decisions by the Board of Directors.rights and responsibilities for coordinated operation and
Party-masses Working
Audit Department Department
Inspection Office
Discipline Inspection
Department
Legal Compliance
Department
Finance Department
Intelligent and
Informatization Department
Human Resources
Department
Environment Health and
Safety Department
Strategic Development
Department
Marketing Department
Manufacturing Center
Operating Center
Office of the Board Technological Research
of Directors Institute30 CR Micro 2023 Sustainable Development Report 31
Strengthen the Construction of the Board of Directors Enhance Information Disclosure Strengthen Communication and Deepen
Investor Relations
The Company in accordance with the Company Law the of the Board of Directors establish mechanisms for the The quality of information disclosure is an important reflection Adhering to the concept of two-way communication the
Guidelines on Corporate Governance for Listed Companies management to be accountable and report to the Board of of the quality of a listed company and a crucial basis for Company conducts investor relations maintenance work and
the Articles of Association and other laws regulations and Directors standardize the positioning and exercise methods investors to understand reliable and key information about carries out investor communication activities in accordance
rules and systems has formulated the Implementation Plan of the Board of Directors' rights and responsibilities and the Company. CR Micro has always adhered to the principle with the Investor Relations Management System of China
for the Exercise of Authorities by the Board of Directors. The enhance the efficiency and quality of decisions made by the of “high standards and strict requirements” and attached Resources Microelectronics Limited. By establishing effective
Plan aims to optimize and improve the discussion processes Board of Directors. great importance to information disclosure. Guided by channels of communication with investors the Company
investor demands the Company actively improves the quality conveys the voice of the capital market internally and
of information disclosure and standardizes the operating level communicates the Company's value externally maintaining
effectively safeguarding the legitimate rights and interests of good investor relations and helping establish a trustworthy
During the reporting period investors. market image for the Company.
1 female director was added. Ensure Compliant Information Disclosure Enhance research capability and listen to the
and Safeguard Investors' Rights and market
11 Interests Special Committee meetings 7 Board of Directors meetings and 3 Shareholders' meetings were held. By establishing a mechanism for selecting and
In accordance with the relevant requirements of the organizing weekly information on public relations and
Companies Act of the Cayman Islands the Securities Law investor relations the Company collects and compiles
Three corporate governance systems were newly established namely the Management System for Information and the Administrative Measures for Information Disclosure information such as investor feedback weekly
Disclosure Deferral and Exemption Affairs the Evaluation Method for the Board of Directors of the Subsidiary the of Listed Company the Company strictly fulfills its information public opinion reports and industry trends providing
Evaluation Method for Directors of the Subsidiary. Additionally four corporate governance systems including the 'Three disclosure obligations ensuring compliant and efficient references for internal management.Major and One Significant' Decision-making System of CR Micro and the Implementation Regulations of the Strategic disclosure of corporate information to enhance the value By establishing a weekly maintenance and information
Committee under the Board of Directors were revised and improved. transmission and transparency of information disclosure. feedback mechanism the Company guides and
During the reporting period a total of 83 announcement
disseminates investor feedback industry trends and
documents covering corporate governance intermediary
company operations providing investors with deeper
agency reports Shareholders' meeting and other types were
insights into the Company.disclosed with a total count of approximately 1.16 million
words.Host investor open day to deepen market
connections
Ensure Diversification of the Board of
For three consecutive years the Company has
Directors Honors and Awards proactively organized three Investor Open Days to
The Company adheres to the policy of diversification for the expand the coverage of investor communication and
members of the Board of Directors and considers various foster positive interaction.factors including but not limited to age gender educational In May 2023 the Company wasbackground professional experience skills and tenure when honored with the “Investor Relation Combining with new product launches the Companydetermining the composition of the members of the Board ofDirectors. The Company has a total of 12 directors including Tianma Award” in the 14th Securities promotes i ts new technologies products and
one female director and four independent directors to achieve Ensure the Independence of the Board of Times Investor Relations Awards. developments to investors thereby boosting investor
the diversification of the members of the Board of Directors. confidence.Directors
In accordance with the Opinions on the Reform of the Listed In October 2023 the Company
Support the Performance of Duties by Company Independent Director System the Measures received an A-level evaluation for
Conduct performance briefings to gain
for the Administration of Independent Directors of Listed
External Directors information disclosure work in the
market trust
Companies and other relevant regulations the Working Rules
for Independent Directors of China Resources Microelectronics 2022-2023 period from the Shanghai Following the quarterly/half-yearly/annual performance
In accordance with the requirements of the State-owned Assets Limited has been revised. A dedicated meeting mechanism Stock Exchange and was recognized
Supervision and Administration Commission of the State Council announcements the Company organizes performance for independent directors has been established to strengthen
regarding the standardization of support for the performance of as a “Best Practice Case” in their performance of duties and supporting guarantees fully briefings and roadshows to showcase the Company's
duties by external directors in central enterprises the Company leveraging the role of independent directors. corporate governance by the China highlights.has established the Support Plan for the Performance of Association for Public Companies.Duties by External Directors . This includes organizing various By adopting a flexible approach combining online and
types of training exhibitions and special meetings providing
support such as specialized information submission and pre- offline methods the Company expands communication
communication for major decision-making matters and actively In November 2023 the Company channels through live streaming video conferencesproviding relevant materials needed for the performance of obtained the “Award for Information teleconferences and collective performance briefings.duties by directors to meet their decision-making demands. Disclosure Outstanding Companies”
Additionally director and executive liability insurance has been
by the Wuxi Association for Public By employing innovative forms of value communication
purchased to ensure the support for the performance of duties the Company creates visual annual reports and
by directors. Companies.dynamic video interpretations of annual performance to
enhance communication effectiveness.32 CR Micro 2023 Sustainable Development Report 33
Promote Relying on the Committee for Law-based Governance Risk Control and Compliance Management CR Micro establishes and supervises the system of legal affairs
Dream of a Blue Ocean for Chip Pioneer the Future of Semiconductors Risk compliance internal control and risk management thereby enhancing the Company's capacity for legal and compliant operation and significant risk prevention. Efforts are
made to promote the construction of party conduct and clean governance and anti-In December 2023 CR Micro held the 2023 Investor Open Day & New Product Launch. Themed “dreaming of a blue Compliance corruption work providing a strong political guarantee to address risk challenges andocean for chip pioneering the future of semiconductors” the event facilitated in-depth communication and exchanges achieve healthy development.between the management of the Company product line leaders investors and analysts from across the country. They
discussed CR Micro's operational highlights overall strategic layout development trends of the semiconductor industry
and the growth of the automotive electronic chip industry. The Company patiently and meticulously addressed market
concerns and jointly outlined a new blueprint for its high-quality development. Compliance Management Internal Control Management
System The Board of Directors as the highest decision-making body
for internal control system management is held liable for
The Company has formulated the Compliance Management establishing and implementing an effective internal control
System and established a mechanism for communication system. The Committee for Law-based Governance Risk
and reporting on significant risks facilitating two-way Control and Compliance Management as the leading body
communication between the Legal Compliance Department is held liable for coordinating organizing and promoting the
and the Bus iness Depar tment thereby improv ing implementation of specific tasks. Each functional department
management efficiency and avoiding significant risks is the responsible party for the construction and supervision
for the Company. At the same time the whole-process of the internal control system implementing relevant work
compliance management system including compliance on internal control and risk management according to its
obligation identification risk assessment and response respective functions. The designated organizations of each
is established with the Business Department as the main subsidiary serve as the leading bodies for internal control
body and coordinated and guided by the Legal Compliance and risk management and the authority and responsibilities
Department. are delegated to the respective responsible departments
and individuals forming a well-led clearly defined process-
oriented and standardized management mechanism.Construction of the internal control system
During the reporting period The Internal Control Management System has been
formulated to establish a comprehensive and interconnected
internal control management system. The Regulations on
62 the Management of Rules and Systems has been revised to The Company issued a total of systems improve the mechanisms for the formulation assessment
and improvement of the internal control system covering
including 17 new ones revised 45 ones areas such as corporate governance operations legal affairs compliance human resources research and development
55 and in fo rmat ion management thereby promot ing and abolished ones. These systems standardized management.
cover areas such as corporate governance
operations legal affairs compliance human
resources research and development and Internal control evaluation
information management effectively ensuring Based on the fundamental elements of internal control and
that all management work is well-founded and considering comprehensiveness an annual internal control
During the reporting period evaluation is conducted in key business areas. The evaluation supported. aims to continuously optimize the internal control system
through evaluation-driven improvements.A total of 118 investor communications were conducted with the participation of 1200+ institutions and The coverage rate of economic responsibility
1800 audits and major project investment audits is over attendees. Internal control informatization construction 100% and the overall rectification of internal The risk management measures are incorporated into
information systems covering key business areas such
86 audit projects is at 100%. as sales assets funds and financial management. This Investors of the Company raised questions to CR Micro on the “Shanghai Stock Exchange e-Interaction” transformation upgrades control from a “human-based”
platform with a response rate of 100 approach to a “technology-based” approach enhancing %. the level of informatized control.34 CR Micro 2023 Sustainable Development Report 35
Internal Audit Risk And Identification
Risk prevention and control mechanism
Continuously improve the leadership structure of internal audit Accountability for Illegal Business Investment of China
under the direct leadership of the Party Committee and the Resources Microelectronics Limited were established and In 2023 the Company organized functional departments Optimize the risk classification monitoring indicator system
Board of Directors further clarify the matters to be reported improved further enhancing the audit system and providing and business groups to conduct top-down risk assessments. set up risk quantification monitoring indicators that highlight
by the Audit Department to the Company's Party Committee strong guarantee for deepening internal audit. Key risk indicators were monitored in real-time and risk the characteristics of the semiconductor industry and
assessment procedures were followed. The top ten risks the Company strengthen quarterly monitoring of major and the Board of Directors and incorporate them into the operational risks and enhance the application of monitoring
manual of rights and responsibilities. Systems such as the Furthermore quality control management and enhancement of the year were selected to prevent the spread and results.Internal Audit System of China Resources Microelectronics exploration of combined inspection and audit models and accumulation of significant risks.Limited the Implementation Measures for Economic informatization of auditing are carried out in response to Focus on key areas of risk carry out special governance
Responsibility Audit of China Resources Microelectronics annual internal audit plans summaries major issues identified for risks increase prevention and control efforts and
Limited and the Measures for the Implementation of by internal audits and the implementation of rectification ensure clear visibility and effective management of risks in
key business areas.measures. Top Ten Risks of CR Micro in 2023
Operating efficiency risk macroeconomic and policy Risk capacity building
Audit quality control Exploration of combined Construction of the audit risk human resources risk market risk health safety
management inspection and audit models information system and environmental risk procurement and supply Enhance risk management discussions optimize the risk
chain management risk product risk innovation risk assessment mechanism and explore issues challenges
Strengthen quality control management The Audit Department collaborates with the Develop and launch the Audit Project engineering project management risk and marketing and solutions in risk management.and enhancement with the Quality Control Audit Project and Inspection Office to jointly Management System of CR Micro risk.Measures for Audit Projects of China carry out special inspection work exploring enhancing functions such as issue Conduct risk management promotion and training toResources Microelectronics Limited being a new model of “combined inspection identification bookkeeping/write- ensure that business personnel have a comprehensiveformulated. The evaluation indicators for and audit” to promote the organic off rectification feedback rectification understanding of laws regulations and management
audit projects are continuously improved integration of “economic examination” verification performance evaluation requirements and enhance their risk management
and indicators such as the amount of audit and “political examination” achieve process traceability reminder notifications awareness.findings and transfer of leads are included timely communication and sharing of and dynamic notifications. This effectively
as bonus items. Rectification measures information effectively reduce the burden improves project management efficiency The ICBG establishes a Risk and Opportunity Assessment
are implemented for areas requiring at the grassroots level and fully leverage and promotes closed-loop management Committee and holds regular meetings for risk and opportunity
improvement identified in audits and the synergistic effect of “1+1<2” in of audit rectification. assessment management. Conduct contract management training
inspections by shareholders. resource utilization and “1+1 >2” insupervisory effectiveness”.Anti-monopoly and Anti-unfair Competition Total Risk Management
Strictly adhere to relevant provisions of the Anti-Monopoly The Company continues to optimize and improve its
Law and the Anti-Unfair Competition Law and improve the comprehensive risk management system and operating
examination mechanism for anti-monopoly and anti-unfair norms. In accordance with the requirements of the State-
competition in key areas and critical processes. Establish owned Assets Supervision and Administration Commission
a compliance complaint platform appoint dedicated and the Group and based on its own circumstances CR
personnel for management and set up a dedicated email for Micro constructs a comprehensive risk management system
compliance reports. Procedures for acceptance are defined that is tailored to its characteristics.to promptly identify and address illegal and non-compliant
behaviors. During the reporting period no complaints were Facilitate risk compliance exchanges
received regarding violations of the Anti-Monopoly Law and
the Anti-Unfair Competition Law.Risk management and response
Institutional mechanism Work mechanism Meeting mechanism
Closely monitor significant risk changes and based on the
Provide work mechanisms and specific Establish a management model The Committee for Law-based analysis of significant risks in 2023 develop targeted riskguidelines for comprehensive risk of “pre-event risk identification Governance Risk Control and response measures. Continuously track changes in the levelmanagement through the formulation and response - during-event risk Compliance Management holds of significant risks and risk trends and ensure effective
of the Legal Risk Management System monitoring and early warning - post- periodic meetings to study and implementation of significant risk control measures.the Classification Monitoring and Event event risk reporting and disposal” address key and difficult issues.Reporting Management Measures for and sets up a long-term mechanism The Legal Compliance Department
Significant Operational Risks the Risk for early detection early warning and organizes periodic activities to
Management Guidelines and other early disposal. implement daily or special risk
systems. management work.36 CR Micro 2023 Sustainable Development Report 37
Anti-corruption and Integrity Deepen reform through case studies Create an Atmosphere of Integrity Broaden the Channels of Publicity
Building Maintain a high-pressure environment against corruption
and uphold strict discipline. Intensify efforts to investigate Produce an educational video for warning titled Upholding
The Company is deeply committed to implementing the and handle cases in key areas and critical stages. Utilize Discipline and Strict Integrity to raise awareness. Convene anParty's strategy of self-revolution and the comprehensive the joint case handling mechanism of “office group and education conference for warning to share exemplary cases Establish a dedicated column for publicitystrict governance of the Party. Guided by the spirit of the local” to enhance cooperation and communication with educate individuals through relatable incidents resonate
20th CPC National Congress we are earnestly promoting local supervisory commissions and public security agencies. with the education recipients and achieve a comprehensive
the construction of Party conduct and integrity as well as Leverage the internal Adhere to case-led approaches thoroughly analyze the effect of punishment deterrence and vigilance. Enhance
anti-corruption efforts. We continuously rectify discipline network's “Disciplinary causes of cases promote the establishment of regulations daily education management for investment and acquisition Inspection” column
and punish corruption to create a clean and upright political plug risk loopholes and strengthen both symptomatic and enterprises. Conduct integrity lectures at the grassroots level as the main platform
environment. fundamental measures. and continue to extend the strict governance of the Party to for publicity. Take
the grassroots. the initiative to voice
positive guidance and
consistently publish
Conduct Supervision and Inspections Enhance sales incentive systems articles that reflect the
understanding and
Centered on the overall situation and serving the greater practice of disciplinary Produce an educational video for warning.Urge the implementation of suggestions from the People's inspection. A total of 27 good we comprehensively implement the work deployment
Procuratorate of Xinwu District promote the improvement information articles were of the Party Committee of China Resources Group regarding
of one sales incentive system plug risk loopholes and released in 2023.Party conduct integrity and anti-corruption. We clarify task strengthen both symptomatic and fundamental measures.assignments and promote concrete and regular political
supervision. To address systemic and industry-specific
violations and illegal activities with a focus on rectifying issues
such as “relying on one enterprise to sustain another” and
implementing the spirit of the eight central regulations we aim Compile promotional handbooks
to enhance daily supervision in a thorough and meticulous
manner. For major scientific and technological projects we Create an
develop supervision plans and implement precise oversight organizational
through methods such as supervision and research daily atmosphere of
education and disciplinary recommendations. This provides integrity and purity.Continuously enhance
strong support for project development.the “Integrity CRMicro” brand.Compile and distribute
Supervision Throughout Key Projects 480 copies of the
Convene an education conference for warning promotional handbook
titled Start by Changing
Develop a supervision work plan Your Habits covering
11 units.
Implement over 20 measures in terms of pol i t ical
supervision daily oversight and integrity education. Conduct in-depth research in the sales field
Education supervision and accountability are integrated
throughout the entire project.Hold 2 briefings present 2 special reports submit 4 self-
assessment reports present 1 case analysis report conduct
Conduct supervision and research and 12 interviews and compile 1 research report. Pre-holiday integrity reminder
ensure effective daily education
Assign one disciplinary inspector to be stationed in the Create an atmosphere
project team attending 73 progress meetings and of integrity and purity
procurement committee meetings during the holidays.Pay close attention to
important time points
Carry out 1 special supervision inspection on administrative and display pre-holiday
expenses conduct 1 investigation on business operations integrity reminder
and enterprise management supervise 1 time in the field of pop-ups to all staff
bidding and procurement and conduct 1 project progress members. Produce
survey
one electronic book on
integrity and issue four
Conduct integrity education in batches covering 9 sessions notices on maintaining
and reaching 257 individuals integrity during the
holidays.Provide recommendations and improve
regulations and systems
Issue disciplinary inspection suggestions offering 10 work
recommendations and optimizing and revising 8 systems
Pre-event During-event Post-event38 CR Miicro 2023 Sustainable Development Report 39
Our Performance:
tum Research and development innovation performance:
w Momen The research and development investment amounted to RMB 1.154 billion representing a year-on-year growth of Ne approximately o 25.30%.ustomers
t The research and development intensity measured as the percentage of research and development investment to
Serve C Future operating income was 11.66
%.re a Bette
r
es and By the end of 2023 the Company had a total of 10249 employees with 4179 being research and development Sha ponsibilitiprimary res ion as the technicians accounting for 40.78% of the total workforce.o fulfilling
its at
gical inno
v
pment
dedicate
s itself t technolo d develo
CR Micro
regards arch an tifying
ess activ
ities. It lstering it
s rese
o emphasi
s on for iency
core bus
in gress b c
for its pr
o places
great ing its p
rof er
catalyst
ti iv
Furtherm
ore it en
stem au
gm
striving
to del Research and development innovation achievement:
abilities. cap gemen
t sy ement a
nd
a g s to esta
blish a
an
uality m ality ma
na tive i ducts
its q s in qu . The o
bjec -notch p
ro
p e CR Ansheng established the first IPM assembly platform based on DBC technology at CR Micro
d standa
rd r service plifies to itivan ustome at exem g its co
mpet
ceptiona
l c
te image
th
a by solid
ifyin The “Assembly and Test Key Technologies and Applications for Advanced Power Module” was included in the list of
ex
rand and
corpor es there
b g servicn major scientific and technological achievements of central and state-owned enterprises.outstan
di
and .advancem
ent
r Actio
ns:
u Quality management performance in 2023:O
t innov
ation
Produc The “Positive Award” of the Xinwu District Mayor's Quality Award was received for the first time.and R&
D
quality the Audits from 1175 customers were successfully passed.Enhanc
ing
ontrol A total of 40 quality management audits were conducted by the Quality Management Department identifying 714 c
-quality
high aspects for improvement.Offerin
g
s
: serv
ice The Automotive Quality Management Guide and automotive rework standards were developed. To ensure the
levant SD
Gs implementation of control measures 16 relevant documents were updated and system optimization was carried out.Re
Customer service performance in 2023:
Each business group of the Company conducted satisfaction surveys for 175 key customers. The FBG the PDBG
and the ICBG all achieved comprehensive satisfaction scores of 92 or above (out of 100).The customer complaint resolution rate reached 100%.40 CR Micro 2023 Sustainable Development Report 41
Product Innovation serves as a powerful driving force for the progress of the Company and continuous improvement in research and development Structure of the CR Micro Technological Research Institute
innovation and capabilities is a key factor in maintaining long-term core competitiveness. CR Micro focuses on innovation-driven development enhances the
construction of innovation management systems intensifies efforts in CR Micro Technological Research Institute
R&D core technology breakthroughs establishes a platform for technological
innovation strengthens the innovation awareness of all employees and
contributes to the high-quality development of the Company. Science and Technology Management Department
Research and development Research and development
institutions of the Headquarters institutions of the business group
Develop Innovation Strategy
Pioneering Process
Power
The Company adheres to an innovation-driven approach Process and the Evaluation Guidelines for the Performance Application Comprehensive
technology integration
Integrated semiconductor Assembly
technology circuit R&D engineering
considering the enhancement of independent innovation of R&D Projects in line with the Company's 14th Five-Year laboratory technology R&D technology R&D center R&D center center center innovation center R&D center
capabilities as a primary task in innovation research and R&D Innovation Strategic Plan establishing the Technological
development management. It revises innovation systems Innovation Hub of CR Micro. Forward-looking System application Forward-looking Process integration MCUs SoC ICs Power devices and Assembly and test
technologies and solutions technologies and technology and their application their application technology
such as the Technology Achievement Reward Management products products solutions solutions
Including wide- Including power Providing Including BCD Including wireless Including power Including QFP
bandgap supply smart testing analysis MEMS Analog charging MCU MOS IGBT QFN IPM panel-
semiconductor health application and reliability CMOS etc. sensor control third-generation level assembly
Expand and optimize the main business of power devices IPMs etc. solutions evaluation support ASIC etc. semiconductors etc. etc.Accelerate the development of the intelligent for the Company's
semiconductor cont inuously. Accelerate the
sensor business. Strengthen the application and technological
mastery of core technologies enhance innovation research and
commercialization of technology reserves. Aim to development
capabilities and improve core competitiveness.achieve productization and industrialization and
Maintain a leading position in domestic market
create new areas of business growth. Responsible for research and development of forward-looking Responsible for meeting current market needs and addressing market competition through
segments and strive to achieve global leadership. technologies and products research and development of technologies and products
Innovation
Provide a public service platform
Strategy
Strengthen the strategic layout of cutting-edge core
technologies. Increase research and development Drive technological innovation. Build a high-
investment and improve research and development level research and development team. Achieve Chongqing Power Semiconductor Technology Innovation Center - granted by Chongqing Science and Technology
Commission
efficiency. Achieve breakthroughs in key core independent research and development of
technologies in areas such as third-generation products independent control of technology and Chongqing Enterprise Technology Center - granted by Chongqing Economic and Information Commission
compound semiconductors specialty manufacturing ensure reliable data security. Key Laboratory of Industrial and Information Technology in Chongqing for Power Device Reliability Testing - granted by
processes and advanced assembly. Chongqing Economic and Information Commission
Jiangsu High-Value Patent Cultivation Demonstration Center - granted by the Intellectual Property Office of Jiangsu
Province
Jiangsu Optoelectronics Engineering Technology Research Center - granted by Jiangsu Provincial Department of
Science and Technology
11 provincial-level research
Jiangsu ASIC Design Engineering Technology Research Center - granted by Jiangsu Provincial Department of Science
and development institution and Technology/Finance Department
Improve the Innovation System qualifications Jiangsu Enterprise Technology Center - granted by Jiangsu Economic and Information Commission
Jiangsu Advanced Power Semiconductor Assembly Engineering Research Center - granted by Jiangsu Development
and Reform Commission
Leadership of the Headquarters Jiangsu Power Semiconductor Assembly and Test Engineering Technology Research Center - granted by Jiangsu
Provincial Department of Science and Technology
The Company establ ished CR Micro Technological microelectronics industry. The Technological R&D Centers Jiangsu Integrated Circuit Engineering Technology Research Center - granted by Jiangsu Provincial Department of
Science and Technology
Research Institute responsible for the unified planning of the Business Groups carry out technology research and
and management of major research and development development based on market demands for 1-3 years. Jiangsu Integrated Circuit Advanced Assembly Technology Innovation Consortium - granted by Jiangsu Provincial
Department of Science and Technology
projects. The Science and Technology Management Since its establishment it has obtained 11 provincial and 10
Department is held liable for the organization coordination municipal research and development institution qualifications. Wuxi Enterprise Technology Center - granted by Wuxi Economic and Information Commission (4 qualifications)
and management of daily research and development work. Wuxi Key Laboratory of Audio and Video Signal Processing - granted by Wuxi Science and Technology Bureau
The Technological Research Institute is composed of two In addition the “CR Micro Science Association” was Wuxi Integrated Circuit Technology Research Institute - granted by Wuxi Science and Technology Bureau
categories: Headquarters-level and business group-level established to continuously strengthen technological Qualifications of 10
with a total of 7 research and development institutions municipal-level research
Wuxi New Power Integrated Circuit Technology Research Institute
leadership and build a source of original technology. In
and development
responsible for different research fields and directions. The 2023 the organizational structure of the CR Micro Science Advanced Assembly Engineering Technology Research Center - granted by Wuxi Science and Technology Bureauinstitutions
Technological Research Institute of the Headquarters focuses Association was improved by supplementing members based Dongguan Advanced Assembly Engineering Technology Research Center for Semiconductor Integrated Circuits -
on the future technological development needs of 3-5 or on the existing members providing strong support for the granted by Dongguan Science and Technology Bureau
even 10 years conducting forward-looking research on the Company's technological innovation work. Wuxi Key Laboratory of Power Semiconductors - granted by Wuxi Science and Technology Bureau42 CR Micro 2023 Sustainable Development Report 43Implementation of Achievements CR Micro's Integrated “High-performanceLow-temperature Rise Intelligent PowerThe 4th Technology Conference held by CR Micro for fulfilling ambition through research Module CS57XXXT” was honored with
the “China Chip” Excellent Technology
Under the sound innovation management and research and Innovation Product Award.development system the Company has achieved numerousIn September 2023 CR Micro held the 4th Technology innovative results that are “domestically leading andConference with the theme “Creating Brilliance with CR internationally advanced” obtaining high-quality innovationChips”. Relevant responsible individuals presented the outcomes accessible to the microelectronics industry in
Summary and Innovation Plan of CR Micro for Technology China.Innovation Work and the Report on the Growth and
Development of Technology Talents in CR Micro providing
a phased summary of the Company's technological
innovation work over the past three years discussing
and planning future technological innovation work and
commending outstanding scientific and technological
personnel and achievements for the year 2022 as well as
significant scientific and technological achievements over
the past three years.Enhance efforts in technological breakthroughs to promote the transformation of scientific and
technological achievements
Power modules are key components of power converters and inverters with high industry concentration and significant
head effects heavily reliant on imports. To avoid the “bottleneck” issue and achieve domestic substitution CR Micro has
Technological Foundation independently conducted research and development on the structural design simulation key materials and key assembly
technologies of high-performance highly integrated and highly reliable power modules. Focusing on products such as
IPM intelligent power modules Copper Clip advanced process modules and third-generation semiconductor modules
The Company focuses on the field of power semiconductors internal and external research and development innovation the Company has studied key assembly technologies carried out the design trial production test and verification of
intelligent sensors and key markets. With a focus on resources increasing investment in technological research industrial control-grade and automotive-grade power modules mastered the key assembly and test technologies of power
promoting the research and development of core products and development nurturing advantageous technologies modules and established industrial production capabilities. A total of 20 authorized patents have been obtained filling the
and technologies the Company adopts an open and and product portfolios narrowing the gap with the industry's technological gap in the domestic high-end power module assembly field achieving technological independence andindependent innovation approach aiming to be“ domestically advanced level and enhancing the Company's core control and reaching an internationally leading level.leading and internationally advanced” by integrating competitiveness.In November 2023 the “Assembly and Test Key Technologies and Applications for Advanced Power Module” was
included in the list of major scientific and technological achievements of central and state-owned enterprises.The power assembly and test base
The first IPM assembly platform based had 38 process platforms with
on DBC technology was established at 100% connectivity for 8-inch and 12-
CR Micro. Key process research and CR CR inch wafers. Progress was made in
development were completed. A GaN Ansheng Run'an advanced assembly techniques such
module mass product ion assembly as top-side heat dissipation for TOLT
platform was established and monthly the introduction of third-generation
shipments in the millions were achieved. semiconductors SiC/GaN and Trace
to Die.Examples of
Technological
Innovation
Initiatives
The Cu Clip assembly technology
A system-level assembly technology Xipan platform for power devices was
platform for PSiP and an assembly JiequnCompany establ ished as wel l as var ious
technology platform for GaN power automot ive product technology
modules were established based on the platforms such as DSCPPAK Clip
advanced PLP process. SPPAK IC+MOS TCPAK Clip and
TO263 ATV.44 CR Micro 2023 Sustainable Development Report 45
Increase Investment in Talent Incentive System
Talent Team Development
Research and Development
The top-level design of the R&D innovation system is improved
and regulations such as the Methods for Rewarding Technological
The Company continues to increase investment in research Achievements and the Contribution Award for Technological As of the end of the reporting period the Company had a total of 4179 research and development technical
and development to ensure the continuity of innovative Development Projects are introduced to ensure the smooth personnel.research and development. During the reporting period progress of R&D innovation work. A fault-tolerant mechanism
in accordance with the overall planning requirements for for technological innovation is introduced specifying exempted
behaviors during the technological innovation process and Programs such as integrated circuit engineering workshops have been consistently implemented. By the end of 2023promoting technological innovation during the “14th Five- eliminating responsibilities and obligations that should not be borneYear Plan” period and the Guiding Opinions on Preparing by scientific and technological personnel. 81 individuals with master's degrees (77 with equivalent qualifications) and 7 doctoral candidates (currently
the R&D Budget for 2023 R&D funds of RMB 1.154 billion enrolled) had been nurtured.were invested.Incentive system for excellence
R&D funds A technical sharing platform has been established and by the end of 2023 32 sessions of expert lectures had
The evaluation and assessment of research and development
Unit: RMB 100 million been conducted.projects are implemented based on project milestones and
a mechanism for rewarding research and development
11.54 achievements and sharing development benefits after mass
9.21 production is established. This encourages researchers to
actively seek and make good use of external scientific and
7.13 technological innovation resources.
Establish an award recognition platform Deepen the industry-university- Consistently implement programs such as
research collaboration integrated circuit engineering workshops
Awards are set up for outstanding scientific and technological
achievements collaborative innovation and excellent patents
2021 2022 2023 forming a classified and graded patent reward mechanism.
The Company focuses on i ts core business and A pathway for the educat ional advancement of our
continues to deepen cooperation and interaction with scientific and technological talent is being established. This
domestic universities. Through initiatives such as joint includes initiatives such as the National Master's and Ph.D.laboratory construction collaborative training programs
Incentives for Innovation Talents Pilot Program Integrated Circuit Engineering Workshops
Illuminate brilliance and contribute the between universities and enterprises promoting targeted and Educat ional Ass is tance Programs prov id ing a
“female” strength of technological internships and practical training partnerships with comprehensive pathway for individuals to progress from high
The cultivation of scientific and technological talents
innovation universities implementing joint master's and doctoral school education college education graduate education
is carried out and efforts are intensified in innovation degree programs and establ ishing postdoctoral postgraduate education to doctoral education. Among these
incentives. Activities are organized to select outstanding workstat ions we are promot ing comprehensive initiatives the National Master's and Ph.D. Pilot Program and
scientific and technological workers and technological collaboration among industry academia and research Integrated Circuit Engineering Workshops are deep-rooted
innovation is encouraged. An innovative culture is nurtured The app l ica t ion marke t fo r w ide-bandgap institutes. This accelerates the independent development
semiconductor products is rapidly expanding collaborative projects between the Company and universities. and the innovative drive of researchers is stimulated. At the of outstanding talents in scient if ic research and
same time the innovative vitality of female scientific and exper iencing high growth in areas such as
Currently we have nurtured 81 individuals with master's
engineering providing talent support for tackling key core
au tomot ive e lec t ron ics g reen energy 5G degrees (77 with equivalent qualifications) and 7 doctoral technological workers is given importance. Support and technologies in integrated circuits.communications and military applications. Zhang candidates (currently enrolled).encouragement are provided for them to undertake major
company-level R&D projects and the potential of female Xiaorong is a female scientific and technological Through the Expert Forum and Business Group Engineerscientific and technological workers is tapped into. worker in the Company. She has participated as From June 8 to 9 2023 CR Micro held the “Integrated Forum of the Headquarters we foster collaboration anda key member and successfully completed major Circuit Engineering Workshops Phase II” ice-breaking and
facilitate internal sharing and exchange of scientific andresearch and development projects on “Design integration team-building activity along with the openingtechnological talent across departments and units. This
Female scientific and technological workers share experiences at and Process Technology Development of Gallium ceremony. The workshop program contributes to enhancinga technology conference creates a technical sharing platform and cultivates a Nitride Power Devices on Silicon Substrates” employees' overall capabil it ies and job performance
favorable internal scientific and technological atmosphere.and “Enhanced Gallium Nitride Power Device effectively assisting the Company in building a well-structuredThe Expert Forum of the Headquarters has conductedDevelopment on Silicon Substrates” establishing highly skilled and energetic team with a sufficient number
25 sessions (featuring lectures by industry experts
a research and production platform for gallium of scientific and technological talent. This lays a solid talent
professors from universities and internal experts) while
nitride devices. Thanks to the experience gained foundation for the Company's high-quality development.the Engineer Forum (focused on internal technical and
from the gallium nitride project her abilities in project
product sharing) has conducted 32 sessions in the
research and development as well as management
PDBG the FBG and the ICBG. Additionally the ATBG
have greatly improved. In 2023 she undertook
has organized three technical seminars to facilitate
the Company's forward-looking research and
both internal and external communication broaden thedevelopment project “Development of Galliumperspectives of technical personnel of the company andOxide SBD Devices” and as the project's principal
inspire innovative thinking.led a team to initiate the development of wide-
bandgap semiconductor power devices.46 CR Micro 2023 Sustainable Development Report 47
Enhancing CR Micro adheres to the quality policy of “customer orientation prevention-oriented green and environmentally friendly and continuous improvement” fostering a quality Three projects of CR Micro received the “Improvement Level” achievement award by the The “Positive Award” of the New Wuxi
the quality culture of “customer satisfaction quality supremacy and full employee participation”.national QC team District Mayor's Quality Award received
We continuously enhance the construction of our quality management system and
comprehensively improve the Company's quality management capabilities and standards.control
Quality Management Systems External Recognition
The Company always upholds the spirit of craftsmanship We are committed to providing high-quality products and
prioritizing quality and emphasizing meticulous quality services earning recognition from our customers. Every
management. We adhere to the principles of high standards year we seek third-party organizations to conduct audits and
systematic management and integrated development testing of our quality management capabilities and products
incorporat ing factors such as informat ion secur i ty receiving numerous certifications from authoritative institutions.environment health and safety energy and environmental In 2023 the Company successfully passed audits from 1175
materials into the scope of quality management. We have customers including Siemens FinDreams Powertrain Goway
established a quality management system in accordance CATL Schneider Electric Omron Midea Haier and others.with ISO9001 IATF16949 and QC080000 standards.Simultaneously we pay full attention to and implement In addition based on the existing platform the Company Internal Audit
regulations such as the RoHS directive and REACH has established a process for evaluating the introduction
regulations as well as customer requirements related to of automotive industry products achieving systematic
environmental materials. Throughout the entire product To ensure the implementation and efficient operation of “Information Security” “Environmental Materials” and evaluation capabilities for automotive projects. Based on the
production process from procurement to manufacturing and Automotive Quality Management Guide the Company's quality management system the Quality other specific areas. In response to the issues identified formulated by the
warehousing we establish a comprehensive environmental Management Department organizes internal audits on topics during the audits responsible departments are required to Quality Management Department and the requirements of
material management system. such as “Quality Management System” “VDA6.3” generalize and implement closed-loop rectification.multiple automotive customers specific rework standards for
the automotive industry have been developed. To ensure the
In 2023 we continued to promote the integration of quality implementation of control measures 16 documents have been
management and the upgrade of vehicle regulation quality updated and several supporting systems have been optimized
management. The Quality Management Department initiated such as the customer downgrading system Hold system MES
eight projects in integrated quality management meeting system etc. This elevates the standards of automotive system During the reporting period
the Company's needs for high-quality high-standard and management and enhances the automation characteristics of
efficient development and maximizing value. automotive product circulation control making it more efficient
and secure. After a duration of 5 months the first automotive A total of 40 quality management audits were conducted by the Quality Management Department identifying
industry product fully compliant with automotive regulations
was successfully launched and circulated. 714aspects for improvement;
Key customers of CR Micro
A cumulative total of 849 online inspections were performed covering 197901 items and
2428 issues were identified resulting in a detection rate of 1.22%;
A cumulative total of 12 audits were performed during the manufacturing process covering 20430 items
and 17 audits were performed for products covering 166 items.Quality Management System for Products and Services Certified by Authoritative Accreditation Bodies
Quality Automotive Quality Green Partner of Hazardous Substance Information Security Electrostatic Protection Environmental Occupational Health Energy
Assurance Standards Sony Process Management Management Management Management Management Management
ISO9001 IATF16949 SonyGP QC080000 ISO27001 ESD20.20 ISO14001 ISO45001 ISO5000148 CR Micro 2023 Sustainable Development Report 49
Strengthen Quality Control
Conduct Specialized Training Awareness
The potential of internal and external resources is fully tapped 2023 the Company organized specialized training sessions The Company attaches great importance to the construction employee skill competitions. Through mediums such as
into to create a series of quality tools and lean-themed on 6sigma VDA6.3 IATF6949 and automotive quality of a quality culture. Centered around the theme of National display boards official WeChat account banners and bulletin
courses. Quality knowledge is promoted and learned through management greatly enhancing employees' understanding Quality Month we organize a series of quality activities boards we comprehensively promote National Quality Monthdiverse means and lean experiences are shared within the of automotive system standards and quality management under the banner of “Quality Gathers Brilliance Galloping creating an atmosphere of in-depth learning and applicationCompany to promote lean concepts and enhance job skills. In tools. towards the Future.” These activities include a knowledge of comprehensive quality management knowledge to
competition on quality management the Quality Champion enhance the overall quality awareness of all employees.Championship evaluation of outstanding quality teams and
Training on quality tools and lean-themed courses
Promote National Quality Month activities through
display boards Organize employee skill competitions
Conduct the “Employee Skills Campaign” event
Award ceremony for the “Quality Champion Championship”50 CR Micro 2023 Sustainable Development Report 51
Offering CR Micro adheres to the vision of “becoming the global leading product and solution Safeguard Customer Rights and Properly Resolve Complaintssupplier of power semiconductor and intelligent sensor”. We achieve this by providing
high-quality high-quality products and services continuously improving our after-sales service and Interestsinformation security management system safeguarding customer rights and interests Rapid response
and constantly creating greater value for our customers.services The Company attaches great importance to the protection of customer rights and interests considering it an effective We implement a 24-hour customer complaint response
approach to improving product quality and better meeting mechanism. By leveraging advanced failure analysis equipment
customer needs. We further enhance user services and a comprehensive IT system we conduct precise analysis of
promptly respond to customer complaints establish smooth customer failure samples determine failure mechanisms and
implement systematic improvement and tracking.communication channels timely and properly address
Optimize the Service System customer concerns implement responsible marketing and
increase customer satisfaction and market reputation. Root cause resolution
High-qual i ty customer service is the foundation for aims to improve service efficiency and customer experience.establishing and maintaining trusted customer relationships At the same time we continuously improve and optimize the Expand Communication Channels For issues identified in customer complaints we employ quality
tools such as “the 8D problem-solving method” “5W2H”
at CR Micro. The Company always upholds the principle of customer relationship management system promptly and “fishbone diagram” and “5MIE” to identify the root causes
customer supremacy and has established a customer service efficiently respond to customer demands and feedback and extrapolate findings improve products and services and prevent
system consisting of sales service teams quality service provide customers with comprehensive three-dimensional Website service Online Service teams the recurrence of similar problems.teams technical service teams and IT systems. This system efficient and prompt high-quality services. portal customer channels receive visits
service hotline proactively visit
email electronic customers organize
E-Service system Offline regular engineering Closed-loop management
Enable customers to have comprehensive etc. of the channels quality discussions
access to information and status on current Providing Company and hold irregular Professional personnel systematically track and improve failure
yield online process capability on-time delivery exclusive customer quality mechanisms ensuring a closed-loop management approach
rate complaint progress and engineering services joint problem- where every customer complaint receives a response and is
development progress in a one-stop manner. solving meetings. followed up on.Combine product characteristics with customer
In response to customer feedback we promptly verify and confirm on site engage in discussions with the customer's technical team assist in
Popularize needs and conduct more precise product identifying potential abnormalities in the production line and develop investigation plans and improvement strategies to enhance customer satisfaction
product knowledge popularization activities through and recognition.knowledge industry conferences exhibitions and other
channels.Hold regular and irregular customer quality joint Proactively
problem-solving meetings to help customers assist in
address urgent issues encountered in the problem-
production process. solving
Utilize the official company website official
WeChat account platform email electronic
Enrich E-Service system and telephone services to
communication establish compliant and systematic processes
channels for timely understanding of customer-specific
needs and targeted resolutions to customer
issues.Through a professional training system provide
employees with training in communication skills
product technical information engineering Enhance
analysis and solution-oriented approaches service
capabilities
to continuously enhance the professional
capabilities of customer service representatives.52 CR Micro 2023 Sustainable Development Report 53
Implement Responsible Marketing Customer Satisfaction Evaluation Ensure Information Security
We strictly adhere to national laws and relevant policy The Company attaches great importance to customer Network Security Management
regulations provide truthful disclosure of product and satisfaction. Guided by the customer-oriented philosophy
service information prohibit false or misleading advertising of “winning satisfaction and trust through dedication” we
and actively engage in responsible marketing by enriching conduct satisfaction evaluations and improvement efforts We establish regulations such as the Network Security
potential risk warning channels ensuring the full protection of through individual scoring and open-ended questions. Data Security Management MeasuresManagement Measures of China Resources Microelectronics
customers' legitimate rights and interests. We listen to customers' voices and meet their needs from Limited and the Personnel Network Security Management
multiple dimensions. We respond promptly to issues raised in Specifications of China Resources Microelectronics Limited to Enhance protection technologies
surveys and implement rectification measures to continuously standardize network security management tasks. A network
improve customer satisfaction. Promote the comprehensive use of the Smart Chip security and informatization leadership group is established
Specific practices by CR Micro of Library System office terminal data leakage prevention as the highest decision-making body for network security
responsible marketing During the reporting period each business group of the system and terminal encryption for key personnel. management. A daily office is set up under the Intelligence
Company conducted satisfaction surveys for 175 key Cont inuously enhance data secur i ty protect ion and Informatization Department of the Company as the
Each product is accompanied by a product customers. The FBG the PDBG and the ICBG all achieved technologies for trade secrets systems improve control management organization for network security. Additionally
speci f icat ion sheet that prov ides deta i led comprehensive satisfaction scores of 92 or above (out of measures from various aspects such as physical security the heads of each unit are appointed as the first-line
information on product parameters and usage 100). network security (regional and boundary protection) responsible persons for network security with designated
conditions. server and application security (identity authentication personnel responsible for network security reporting directly
permission management security auditing resource
to them.In the “Products” sector of our official website control backup and recovery etc.) terminal security
we synchronously update and upload product mobile media security printing and recording security In addition the Company conducts regular network security
information and specifications. and strengthen data leakage monitoring and early exercises and anti-phishing tests to continuously enhance
warning.Conduct surveys network security protection capabilities. It organizes training
Our service personnel provide technical knowledge and awareness activities on network security effectively
and safety information covering sales engineering Gain a multidimensional understanding of customer raising the overall awareness of network security protection Strengthen confidentiality awareness
and quality aspects and disseminate product satisfaction with company products and services among all employees.knowledge and precautions to customers. focusing on product quality factory capabilities Emphasize the improvement of employees' awareness
technological research and development customer of confidentiality and network security sign confidentiality
We publicly and regularly update service platform service and management systems. and network security agreements and conduct regular
information establish mechanisms for meetings anti-phishing email tests and training. Enhance third-
with key customers proactively visit customers party personnel management by signing network security
and report on the Company's new products responsibility agreements and confidentiality agreements
technologies and process development. Report to senior management Data Security Management with third-party service units (and their personnel).Strengthen inspection and auditing rectify and improve
P resen t su r vey ana l ys i s r esu l t s t o sen io r security risks.With the object ives of “effect ive protect ion” and
management and optimize improvements based on
“standardized management” the Data Management
management guidance and recommendations.Measures of China Resources Microelectronics Limited
(Trial) and the Data Security Management Specifications
of China Resources Microelectronics Limited (Trial) have
been successively developed to continuously improve the
Product Recall and Withdrawal Targeted improvements construction of data security management systems. The
Intelligent and Informatization Development Committee of
Analyze and address various demands raised by
To ensure product quality the Company has established strict the Company serves as the decision-making organization for customers in the satisfaction surveys formulating
procedures for product quality inspection and recall. We have data security work while the Intelligence and Informatization specialized improvement initiatives.established a comprehensive product quality assessment Department acts as the leading management organization for
and management system for handling defective products data security jointly promoting the uncompromised protection
customer complaints product recalls rework and customer of sensitive data assets such as trade secrets and work
compensation. If any quality issues are identified customers Regular follow-up secrets and ensuring normal business operations.are promptly notified and the recall process is initiated.Based on the severity of customer complaints regarding Assign dedicated personnel to track improvement
quality issues we have developed an emergency customer progress conduct regu la r fo l low-ups w i th
complaint handling process and a bulk exception notification customers report improvement measures and their
mechanism. We use various quality tools to quickly analyze effectiveness and continuously enhance products
the root causes of problems to ensure timely and effective and services.resolution and handling of customer issues.54 CR Miicro 2023 Sustainable Development Report 55
Our Performance:
ts Energy consumption performance in 2023:
velopmene The comprehensive energy consumption per RMB 10000 of output value (comparable price) stood at 0.0655 tons of ew D standard coal representing a decrease of 4.20% compared to the same period last year (comparable price).N ability The comprehensive energy consumption per RMB 10000 of added value (comparable price) stood at 0.1190 tons of Sustain tions standard coal representing a decrease of 8.53% compared to the same period last year (comparable price).Create reen Opera The water reuse rate of 92.34%.hrough G g of eco
logy. CR
T rishin China Green power program: We had planned to steadily increase the annual green power purchase. In 2024 we aim to purchase flou tiful
ation relie
s on the lding a b
eau
iliz for bui G
reen 10 million kWh of green power in the Wuxi region and 20 million kWh in the Chongqing region.y of civ e call oncept that “. We
The prosperit nds to th ent c lver”
ely respo he deve
lopm s gold an
d si
ystem Green power efforts: We have steadily increased the annual green power purchase. In 2023 we purchased a total of
icro activ
10.5
M holds
t le a nt s
sistently
up
s are as
valuab
tal mana
geme
advocat
e million kilowatt-hours of green power in the Wuxi region and 17.54 million kilowatt-hours in the Chongqing region.and con mountain ironmen e
and lush
obust en
v hange. W the
water lim
ate c duce
lished a
r address
c uction to
re
l is to Solar photovoltaic program: In 2023 our existing distributed photovoltaic systems generated a total of 2.077 million tab to rod oa
have es easuresctive m low-car
bon p s. Our gration mental kilowatt-hours of electricity. We had planned multiple rooftop distributed photovoltaic systems under construction in various
king proa lean and e nta y our o
p d enviro
nd imple
ment c b nt caused
a
social locations with an expected additional installed capacity of 6.623MWp by 2026.a ental impa
c omic
environm gration
of econ
chieve t
he inte
a
benefits.CO2 emission performance in 2023:
r Actio
ns:
Ou The CO2 emissions per RMB 10000 of output value (revenue) (comparable price) stood at 0.4237 tons representing a
s Clima
te
dres decrease of 2.12% compared to the same period last year (comparable price).Ad
Chang
e
We have formulated and issued the Carbon Emission Management Measures of China Resources Microelectronics Limited. en
Practic
e Gre Each major affiliated energy-consuming unit has established leadership groups for carbon peaking and carbon neutrality as
roducti
on required.elevant S
DGs: P
ce Gre
en
R Enhan
ageme
nt
Man
Waste gas emission performance in 2023:
The emission of volatile organic compounds stood at 64.4259 tons indicating a decrease of 20.28% compared to the
same period last year.Hazardous waste disposal performance in 2023:
The compliance rate of hazardous waste disposal stood at 100% for three consecutive years
All affiliated manufacturing enterprises have achieved a 100% certification rate for ISO 14001 Environmental Management
System and wafer manufacturing enterprises have obtained ISO 50001 Energy Management System certification.56 CR Micro 2023 Sustainable Development Report 57
Address Mitigating and adapting to climate change is one of the important challenges that humanity needs to address collectively. Enterprises play a crucial role in achieving
Annual objectives for energy and carbon emission management
Climate the "dual carbon" goals and responding to climate change. CR Micro recognizes the significance of mitigating climate change for both the Company itself and the world. We
actively respond to the national call tackle the challenges and opportunities brought by
Change Target for 2023 Target for 2024 Target for 2025climate change enhance our resilience to climate change risks and make a positive Indicators Unit Baseline in
contribution to global climate change mitigation. 2020 Decrease compared to 2020
Comprehensive energy consumption
per RMB 10000 of output value Tons of standard
coal per RMB 10000 0.0935 6% 8% 10%
Respond to “Dual Carbon” (comparable price)Establish Management Objectives Comprehensive energy consumption
Goals per RMB 10000 of added value Tons of standard 0.1811 4.8% 6.4% 8%The Carbon Peaking Action Plan of CR Micro clearly defines (comparable price) coal per RMB 10000
quantitative objectives for energy consumption and CO2
The Company actively responds to the national carbon emission reduction for the years 2025 and 2030. These CO2 emission intensity Tons per RMB 10000 0.6542 6% 8% 10%
peaking and carbon neutrality goals. We have formulated objectives are further detailed and broken down for the
standard documents such as the Carbon Peaking Action period from 2023 to 2025 ensuring the Company's high-
Plan of CR Micro the 2023 Carbon Peak ingWork Plan of quality and sustainable development.CR Micro and the Carbon Emission Management Measures
of CR Micro. We have also established a sound energy and Achievement of energy and carbon emission
carbon emission management system and clarified our management objectives On October 10 2023 China Resources
energy and carbon emission management objectives and Microelectronics (Chongqing) Co. Ltd.direction. Overall goals for energy and carbon emission In 2023 the Company successfully achieved the energy was recognized as a “Green Factory”
management and carbon emission management object ives. The demonstration unit by the Chongqing
comprehensive energy consumption per RMB 10000 of Economic and Information Commission.Enhance Organizational Development By 2025: output value the comprehensive energy consumption per
RMB 10000 of added value and the CO2 emission intensity
In accordance with the Carbon Peaking Action Plan of To reduce its comprehensive energy consumption all decreased compared to the previous year demonstrating
CR Micro the Company has established the Strategic per RMB 10000 of output value by significant achievements in emission reduction and carbon
and Sustainable Development Committee to continuously reduction.improve the carbon emission management system providing
organizational support to enhance the Company's carbon 10 %
emission management level. By the end of 2023 each major compared to 2020
affiliated energy-consuming unit under the Company has
Target for 2023 Actual performance in 2023
established relevant leadership groups for carbon peaking Baseline Achievement
and carbon neutrality as required by CR Micro. Additionally Indicators Unit Decrease Decrease in 2020 Current of objectivesTo reduce its comprehensive energy consumption compared to compared to
all subsidiary wafer manufacturing companies have obtained value
per RMB 10000 of added value by 2020 2020
ISO 50001 Energy Management System certification. Comprehensive energy consumption per RMB Tons of standard
8 10000 of output value (comparable price) coal per RMB 10000 0.0935 6% 0.0655 29.95% Completed% Comprehensive energy consumption per RMB Tons of standard 0.1811 4.8% 0.1190 34.29%
10000 of added value (comparable price) coal per RMB 10000 Completed
Clarify Management Priorities compared to 2020 CO2 emission intensity Tons per RMB 0.6542 6% 0.4237 35.23% Completed
10000
The Carbon Peaking Action Plan of CR Micro clearly
outlines the medium and long-term key tasks for energy To reduce the CO2 emissions per RMB 10000 of
and carbon emission management in the Company output value by
continuously supporting the Company's transition to a green
and low-carbon model and facilitating the comprehensive
implementation of sustainable development strategies. 10 %
Respond to the “dual carbon” goals and take multiple measures to address climate change
compared to 2020
Key carbon peaking tasks of CR Micro
Chongqing CR Micro actively responds to the “dual carbon” goals and continuously improves its climate change
Promote energy conservation and carbon reduction response system. At the institutional level the Company has established carbon emission reduction targets for the
actions throughout the entire manufacturing process “14th Five-Year Plan” period and developed procedural documents such as the Management Procedures for Energy
enhance carbon emission management capabilities Conservation and Carbon Reduction and the Guidebook for Carbon Emission Accounting to manage carbon emissions. At
improve energy recycling and reuse capabilities the organizational level a carbon emission management team and a working group have been established to effectively
enhance resource conservation abilities foster green reduce the carbon emissions generated by the Company's operations through carbon emission management verification
and low-carbon actions among all employees and and greenhouse gas reduction efforts.foster collaborative projects for carbon neutrality and
innovation58 CR Micro 2023 Sustainable Development Report 59
Enhance Management Capabilities Promote Clean Energy
Practice CR Micro is committed to sustainable development by deeply engaging in green Deployment manufacturing fostering environmental protection awareness actively implementing Further efforts have been made to conduct specialized
energy conservation and emission reduction projects advocating green and low-carbon
inspections and implement corrective actions for carbon
With the accelerated adjustment of the global energy lifestyles and work methods and striving to achieve harmonious coexistence between
management hold carbon management seminars organize Green
structure promoting the use of clean energy has become humans and nature.training on carbon emission management focusing on the
an increasing focus for many enterprises. CR Micro actively
decomposition and assessment of “dual carbon” goals Production
seizes the opportunity of clean energy by accelerating the
carbon emission management boundaries emission source
utilization of green power through three major channels:
identification and carbon emission accounting methods to
Self-generation and self-use of green power development
advance the Company's carbon management work. CR
and acquisition of green power certificates for green power
Shanghua and CR Ansheng continue to conduct ISO 14064
trading. It is committed to increasing the use proportion of
greenhouse gas verifications. Strengthen Water Resource
clean energy and achieving carbon reduction and emission
reduction in its own production and operation. Management
Carry out carbon inventories to facilitate The Company considers water resource conservation as one Simultaneously strict monitoring and statistics of water
Increase the self-generation and self-use of
the construction of “dual carbon” of the key focuses of sustainable development. It attaches consumption are conducted to optimize water resource photovoltaic energy
factories great importance to the supervision and implementation of allocation. Efforts are made to reduce water consumption CR Shanghua CR Ansheng and CR Micro Integrated water resource management strategies and performance. and improve water resource utilization efficiency through
have installed distributed photovoltaic systems on Under the leadership of the Board of Directors and the process transformation process optimization and other
factory rooftops and carports. In 2023 a total of
Carbon inventories are foundational work for Strategic and Sustainable Development Committee the EHS methods promoting green and sustainable development.
2077000 kilowatt-hours of electricity was generated
implementing “dual carbon” factories. They department and various business groups are specifically
resulting in a cumulative reduction of 1184.5 tons of
are essential processes for determining changes responsible for the implementation.CO emissions.in greenhouse gas emissions before and after 2
implementation and are necessary for the
exchange of carbon rights in international carbon Discuss a dedicated topic on water resource management in the
markets. In response to customer requirements Increase the use proportion of green power Committee
CR Ansheng has es tab l i shed a carbon Strategic
Formulate goals related to water resource management
verification team and has been fully engaged in In the Wuxi region 10.5 million kWh of green energy and
“dual carbon” management for several years. were purchased from the power company in 2023
Sustainable Set an annual target of achieving a water reuse rate of 91% or
Development
Third-party audits are conducted in accordance with a plan to purchase 10 million kWh in 2024. In the Committee under above
with the ISO 14064 system specifications. Chongqing region a total of 17.5494 million kWh of the Board of Directors
green power was purchased in 2023 with a plan to
purchase 20 million kWh in 2024. Break down the action plan for water resource management and
EHS department of promote its implementation in business groups in accordance
the Headquarters
1 2 3 4 5 with the Committees' goals.
Development and acquisition of green power
certificates
Implement water resource management measures in
To further improve the utilization rate of low-energy EHS department of compliance with the requirements of the EHS management
the Business Group
electrical equipment enhance electrification and department.reduce the use of fossil fuels the development and
acquisition of green power certificates will be pursued
as appropriate.Carbon inventory process
In Chongqing Park Chongqing CR Micro Xipan Company Runxi
Greenhouse gas verification Micro and CR Run'an have collectively implemented photovoltaic
statement by CR Ansheng power generation empowering green development.Implementation of
verification
Preparation of a
verification report
Analysis of
verification materials
Collection of
verification materials
Determination of
verification scope60 CR Micro 2023 Sustainable Development Report 61
Water resource management initiatives of CR Micro in 2023 Examples of water-saving measures in the Wuxi region
Energy conservation technology Utilization of alternative water Reuse of water resources
transformation sources
Annual Annual Annual
water water water
savings of savings of savings of
Water-saving transformation We enhanced information Each business group has
projects cover all production exchange with the water supply independently formulated the 292200 1119700 114900
factories reducing water department to promptly receive Water-saving Management
consumption through measures information on water supply System and the Water-saving tons tons tons
such as process optimization network emergencies and planned Management Control Procedure
technological upgrades and water interruptions. We utilized Program and compiled a list
recycling. underground reservoirs within of water-saving projects. We RO concentrate water recovery Reuse of cleaning process Reuse of regenerated water
the Company to store water enhanced the reuse rate of water in pure water systems water from ordinary acid wastewater
for uninterrupted supply. In this resources through upgrades to
way we aimed to avoid supply water system equipment collection
disruptions caused by water and reuse of process water and
interruptions. wastewater regeneration.In 2023 the Company successfully In 2023 Chongqing CR Micro In 2023 the Company achieved
completed 10 major water-saving experienced 5 instances of water a reuse rate of water resources
projects. interruptions on the water supply of 91.23% an increase of 0.13%
pipeline in the factory area due to compared to 2022 resulting in a Annual Annual Annual
external construction issues each water savings of 2.0084 million water water water
lasting for 60 hours. However the tons. savings of savings of savings of
Company's reservoir effectively
ensured normal production 53700 154400 254600
operation resulting in no adverse
impact. tons tons tons
Reuse of grinding wastewater UF backwash water Cooling tower scrubber
Identification of Water Resource
Pressures WRI risk monitoring results and response measures of CR Micro
We continuously monitor the current status of Testing result Response measures
water resources in our operational areas. Using
external tools such as the Water Risk Atlas from Areas of medium Clear objectives Enhance monitoring Evaluation and allocation Emergency response
the World Resources Institute (WRI) and the to high risks:
water risk screening conducted by the World Overall: Use water according to the government's quantitative Water monitoring points An understanding of water Standardized emergency response plans are developed for the Wuxi base indicator on annual water consumption in 2023. We established are installed in various usage patterns flow rates and 6-inch and 8-inch units to address interruptions in external water
Wildlife Fund (WWF) we identify the rationality a water consumption target of less than 7.72 million tons of water manufacturing facilities and recycling practices is gained supply or deterioration in the quality of tap water. Water reservoirs
of water usage in our production operations Areas of low intake for the Wuxi region (actually 7.1138 million tons). wastewater outlets to regularly to analyze any abnormal water are installed for emergency use to ensure the stable operation of
potential impacts of water intake water scarcity risks: Break down: Based on the established water intake target for the conduct water balance consumption and estimate production lines.and physical risks. We then develop effective Wuxi region the 6-inch and 8-inch business groups and the ATBG calculations. These calculations appropriate water allocation Chongqing factory The ATBG will establish a monitoring mechanism for abnormal
targeted measures to mitigate risks and ensure and Dongguan have each set annual water consumption targets of less than 3.84
involve measuring the amount among different units. tap water usage generating daily weekly and monthly reports to
that water resources can sustain the Company's factory million tons less than 2.98 million tons and less than 0.9 million tons
of tap water process water promptly notify and analyze any anomalies.respectively. recycled water wastewater and
long-term development. domestic water consumption
within the factory.Category Initiatives Performance62 CR Micro 2023 Sustainable Development Report 63
Water conservation improvement projects in Wuxi region for 2023
Initiatives to reduce waste gas emissions
Types of Treatment method
Steam condensate water recovery waste gases
system for dormitory bathing Bed regeneration water-saving
Extended backwash cycles for CR Shanghua refers to relevant pollution emission
MMF and ACF
systems standards and establishes its waste gas management Acidic waste Purification of emissions through alkaline
gases waste gas scrubbers
system testing schemes and management measures.By employing a two-stage waste gas treatment Alkaline waste Purification of emissions through acidic
approach waste gas treatment facilities are implemented gases waste gas scrubbers
The hot water tank on the roof of The flushing time for the bed Set a fixed time for backwashing at both the machine and plant levels to ensure that
the dormitory used to discharge regeneration step was originally and optimize backwashing based Organic waste Purification of emissions through zeolite
steam condensate water directly set to 9999 seconds. During this on pressure differential rise waste gas emissions meet standards and comply with gases wheel + combustion devices
(approximately 70 degrees). Now step the conductivity sampling thereby extending the backwash regulations. Additionally based on production conditions EPI (epitaxial) Purification of emissions through local
it is collected and reused resulting valve can be manually opened cycle. testing procedures are developed for waste gases and waste gases pretreatment facilities and scrubbers
in annual savings of approximately to observe the conductivity value. regular testing and assessment are conducted to ensure
RMB 90000. If it meets the specified inlet
conductivity requirements it can the compliance of waste gas emissions.proceed to Step 25 saving RO
water usage.Disposal of solid waste
By monitoring the flowmeter for Regenerating once saves 30m3 We anticipate saving 7200m3 of The solid waste generated during the Company's operational
10 days after its installation we of water resulting in an estimated water annually. activities is mainly composed of household waste and
have successfully recovered 46m3 annual water savings of 1440m3. Initiatives for solid waste managementkitchen waste generated in daily office operations. The solid
of hot water averaging 4.6m3 per waste generated in production activities mainly includes
day. Based on this we estimate an
3 waste organic solvents waste acids waste activated carbon 1679 Establish a dedicated warehouse for general annual water savings of m .
sludge and other solid waste. solid waste and strictly control every aspect
of solid waste generation collection internal
The Company strictly controls various solid waste in transportation storage transportation utilization
accordance with the Law of the People's Republic of China and disposal to ensure 100% compliant treatment
on the Prevention and Control of Environmental Pollution by of various types of solid waste.Solid Waste and other relevant laws and regulations on solid
Wastewater Management Strengthen Pollution Control Strengthen the qualification and technical capacity waste disposal as well as the Safety Management System
assessment of general solid waste and hazardous
of China Resources Microelectronics Limited for Hazardous
The main pollutants in the wastewater generated during The Company bears the pr imary responsib i l i ty for waste disposal units strictly review the introduction Chemicals . It also strengthens the compliant treatment
our operational activities are ammonia nitrogen and COD. environmental governance and actively carries out pollution of new vendors and conduct regular audits and and recycling of solid waste. During the reporting period
Adhering strictly to emission standards the Company control work. Based on a clear understanding of the types on-site inspections of existing cooperating units.hazardous solid waste was lawfully disposed of by qualified
continuously strengthens wastewater management. Through of pollutants generated by its production and operation hazardous waste disposal units and the compliance of
measures such as constructing an emergency pool initial the Company continuously improves the management disposal was supervised in all subsidiaries.rainwater collection system and recycling of flushing water mechanisms for the emission of waste gases wastewater
we further enhance wastewater recycling and achieve water- and solid waste. It increases investment and implements
saving and pollution reduction. projects to enhance pollution control reduces pollutant
emissions and regularly monitors the emission of pollutants.It ensures that pollutant emissions meet standards while
minimizing environmental impacts thereby contributing to the
Initiatives to reduce wastewater discharge battle against pollution.Establish an emergency pool and an initial rainwater
collection system across the entire factory area to prevent
wastewater pollution incidents.Conduct self-monitoring of soil and groundwater prepare Reduction of waste gas emissions
reports on soil and groundwater monitoring and ensure
that wastewater discharge complies with legal regulations The waste gases generated dur ing the Company's
and relevant standards. operational activities mainly consist of sulfur dioxide nitrogen
oxides and volatile organic compounds. The Company
Recycle and reuse flushing water from the resin polishing strengthens the management of waste gas pollutants through
and ultrafiltration membrane replacement processes in continuous improvement of waste gas management and
the recycling water system instead of discharging it into implementation of projects for waste gas control.wastewater.Project name Project content Annual water
consumption64 CR Micro 2023 Sustainable Development Report 65
Enhance CR Micro adheres to the integration of environmentally friendly concepts into corporate development strategies and policies incorporating environmental concepts into the CR Shanghua is continuously improving its environmental management practices. The Company has established a positive brand image between
Green entire process of production and operation continuously improving environmental Xinwu District government and enterprises. On June 5 2023 it was honored with the “Environmental Contribution” award by the Xinwu District management systems implementing various environmental protection measures Ecology and Environment Bureau.fulfilling environmental protection responsibilities and striving for a win-win situation in
Management terms of economic and environmental benefits.Environmental Management Implement Green Office
System Practices
The Company strictly complies with relevant laws and The Company emphasizes integrating the concept of
regulations such as the Environmental Protection Law of sustainable development into daily operations advocating
the People's Republic of China standardizes environmental for employees to consciously adopt a green simple and
management establishes sound environmental management low-carbon lifestyle and cultivating employees to become
systems and organizations and strengthens environmental advocates and practitioners of low-carbon office practices.supervision and management. In 2023 the total investment For example the affiliated CR Shanghua has implemented
in environmental protection was RMB 47512900. All green office practices through the introduction of the greenaffiliated enterprises have obtained ISO 14001 environmental office initiative of “energy conservation and consumptionmanagement system certification and no environmental reduction starts with me”. This initiative urges employees to
violations or penalties occurred. minimize water electricity and paper usage in the workplace
aiming to establish an environmentally friendly and low-
carbon office environment.Environmental Warning and Emergency
Mechanism
Initiatives for implementing low-carbon Energy Conservation and
office practices
Establish a strong bottom-line mindset enhance risk Environmental Education
awareness and continuously standardize environmental risk
Conduct education on environmental protection and energy
management. Develop comprehensive contingency plans Integrate “Environmental Day” and “Energy Conservation conservation during the Environmental Protection and Energyfor sudden environmental incidents and self-monitoring Utilize double-sided printing and Week” to conduct special training and education on Conservation Week.programs strengthen emergency management through copying and reuse paper when environmental protection. Utilize multiple channels and
Paper
regular training and drills enhance employees' alertness and conservation possible approaches to promote the concepts of energy conservation
emergency response capabilities and strive to minimize the measures emission reduct ion and low-carbon environmental
risks of environmental emergencies. Place paper recycling bins near protection. Firmly establish employees' awareness of energy
communal and departmental printers. conservation and environmental protection and stimulate
their enthusiasm and proactivity in participating in energy
conservation and emission-reducing initiatives.Initiatives for environmental risk
management
Turn off lights and air conditioning Internal education
in unoccupied meeting rooms.Develop environmental emergency plans that cover Organize employees to study policy documents on energy
workshop-level company-level and community-level Use air conditioning reasonably Electricity conservation and carbon reduction. Display posters Share videos promoting energy conservation during the Energy
environmental incidents closely coordinating with keeping doors and windows conservation Conservation Week through the official WeChat account
local government plans to ensure timely and effective and play electronic displays within the premises of the closed when it's on. measures
response and control in the event of accidents. Company for promotional and educational purposes.Power off electronics when
Establ ish emergency response teams with the External sharingleaving for the day.Company leader as the overall commander and relevant
leaders as group leaders to ensure the prompt and Publish environmental knowledge content through
rapid implementation of emergency response work. channels such as the official WeChat account and website
of the Company to enhance environmental awareness
Conduct environmental emergency drills where each Promptly report any leaks in among partners and other stakeholders.Water
factory conducts targeted drills based on its own conservation faucets or pipes for timely repairs.environmental risk points promptly identify deficiencies measures Public welfare transmission
in emergency response and make improvements while Close faucets tightly after use.also enhancing response capabilities. Participate in public welfare campaigns to deepen
environmental awareness and actively advocate for public
participation in environmental protection actions.66 CR Miicro 2023 Sustainable Development Report 67
ity
New Vital es for
Empower
Employe
tual Grow
th
Our Performance:
Mu roachple-oriented appeo re the
concept
of p
tners. W
e ensu
talent
adheres
to the importan
t par sts impr
ove
Micro s te
re s. We
CR ng empl
oyees a d in path
deri s' legal
rights an t r develop
men
sponding
Total investment of RMB 8460434 in employee training with a training coverage rate of i 100%cons mployee th caree ions re
protectio
n of e
stems an
d smoo nto tangi
ble act sense o
f
nt sy
r
yees i ancing th
ei Proportion of female managers at %
evelopme
lo h 19.57
d for em
p and en
anslate o
ur care
r s for a b
etter life
t ion ss. Investment of RMB 7187841 in occupational health and safety achieving the goal of zero occupational
to their a
spirat
ent and
happine disease incidents
security
fulfillm
100% labor contract signing rate by employees 100% social insurance coverage rate and 100% medical
examination coverage rate
ns: 339 incentive recipients granted reserved shares under Phase 1 of the Company's equity incentive plan initiating
ur Acti
o the approval and implementation of the DIS mixed reform shareholding plan for employees
O
mploye
e
E
Protect nterest
s
Rights
and I
e
mploye
Empow
er E
velopm
ent
De yee
t Emplo
Implem
en
Relevant
SDGs: Care68 CR Micro 2023 Sustainable Development Report 69
Protect CR Micro strictly adheres to various laws and regulations such as the Labor Law of Compensation and Benefits the People's Republic of China and the Labor Contract Law of the People's Republic
of China SystemEmployee . We believe in hiring employees in accordance with the law and promoting Establish the “casual talk” platform a diverse inclusive culture. We ensure the protection of employees' legal rights and CR Micro continuously improves its compensation structure and listen to employee feedback
interests continuously improve democratic management and strive to create a fair and benefits system by implementing the Compensation and Benefits
Rights and just workplace environment with equal opportunity for our employees. Management System of CR Micro. Taking into account factors such as company performance individual employee performance and
internal and external fairness we gradually optimize a more equitable CR M ic ro has es tab l i shed and pe r fec ted
Interests and reasonable compensation structure and benefits system through communication mechanisms between employees scientific job evaluation and compensation analysis. and the management continuously expanding
channels for employee communicat ion. For
In addi t ion to providing statutory benef i ts such as social instance the FBG has added a dedicated
insurance housing provident fund paid leave maternity leave column called “Shanghua Casual Talk” on its
and breastfeeding breaks we also offer other non-statutory official website and established employee self-During the reporting periodbenefits including commercial insurance meals at work company governing organizations such as the “CateringEqual and Compliant transportation heatstroke prevention medical examinations Commit tee Transportat ion Commit tee andcommunication support and employee activities. During the reporting Dormitory Committee”. These measures ensure
Employment The Company had a total of We created period the Company introduced a team-building activity fund that employees can raise various work and life-
The Company firmly implements legal and compliant employment 10249 3380 plan explored flexible working arrangements for employees of the
related issues on the platform with designated
Headquarters and enhanced the coverage of commercial insurance personnel responsible for responding to improving
for interns effectively increasing employee happiness and sense of and resolving these issues. In 2023 a total of
practices. We have established relevant systems such as the employees local employment belonging. 702 employee inquiries were received effectively
Employee Recruitment Management System and the Employment positions addressing difficulties related to employees' lives
and Management Measures for Disabled Employees . Based and demonstrating care for their well-being.on the Company's actual work needs and the comprehensive
factors of the applicants' educational background professional Compensation management mechanism Privacy To protect the submitter's identity
background and work abilities we conduct mutual selection. The social The medical protection and ensure the confidentiality of
During the employee recruitment and promotion processes we The labor contract insurance signing examination We implement equal pay for equal work between males and measures acceptance results.eliminate all forms of discrimination based on gender ethnicity signing rate was rate was coverage rate was females ensuring timely and full payment of wages each month;
or religion. We provide equal employment and development Public 100 100 100 To clearly indicate the expected We arrange employee overtime compensation in accordance disclosure of opportunities for every employee enhancing workplace inclusivity. completion time for acceptance with the law either through time-off or overtime pay while rectification results.timeline
complying with minimum wage regulations;
In 2023 the number of labor dispatch workers employed by the % % %
Precise
Company was less than 10% of the total workforce complying To precisely assign responsible
We conduct annual reviews of compensation and based on assignment
with relevant laws and regulations such as the Labor Contract personnel based on the nature of the company performance reasonably set growth plans; of responsible issue.Law and the Interim Provisions on Labor Dispatch . During Female managers
the reporting period we employed over 200 recent university accounted for 33 personnelWe explore flexible working arrangements for employees of the Dual To conduct an initial review by HR graduates effectively driving social employment. 19.57 disabled individuals Headquarters benchmarking management culture in technology verification of administrators and a secondary review were employed by the companies. We research and optimize the attendance results by HR managers in response to
Company management mechanism for functional staff at headquarters
departmental responses.% exploring flexible working arrangements for some employees of To implement targeted management
the Headquarters. We have revised and issued the Attendance Strengthen of issues through fuzzy queries
Management Regulations of China Resources Microelectronics report based on submission time handling
Limited for Headquarters Employees. management department handling status and
content.
356
3% Enhance Democratic Management
623
6% 1817 The Company attaches great importance to integrating democratic
3501 18% management into important policy releases and optimization of
3714 386734% management methods. We maintain smooth channels of democratic
36% 38% communication establish sound mechanisms for employee feedback Education level
Gender ratio in Age distribution and whistleblower protection and encourage managers to engage structure and 3531 in two-way communication with employees actively seeking their
2023 proportions in 35% of employees in opinions and suggestions to enhance employee engagement and team
6535 2023 2023 cohesion.
64%
4209 In addition any employee
2594 41% can appeal against The company In 2023 a total of
25% improper behavior and has continuously
the Company will provide optimized the
timely feedback conduct employee residential 702
confidential investigations facilities and
Male Female Master's degree and Bachelor's 51 years and above 41 to 50 years and respond accordingly. relocated employee employee inquiries
above degree When necessary remedial dormitories from the were received and
31 to 40 years Under 30 years old measures will be taken. Liangxi Road Campus
Junior college Below junior to the Meiyuan addressed.degree Dongxiong Hotel70 CR Micro 2023 Sustainable Development Report 71Empower Talent cultivation is crucial for the Company's development. CR Micro continues to focus on the construction of a talent team that is “youthful international professionalEmployee and market-oriented.” The Company is committed to providing employees with a fair
Leadership Development System
Cultivate newly
competitive environment and broad development space empowering them to grow
This system primarily focuses on the construction of the hired fresh graduatesand excel. By transforming talent advantages into development advantages CR Micro
Development provides strong talent support for promoting high-quality company development. management talent team identifying key areas at different levels. We strengthen the development of middle-level We implement the “Future Stars” program ensuring that
cadres emphasize the construction of talent reserves new hires quickly adapt to their positions and gradually
grow into competent professionals. Through a two-week
and succession planning and create a cross-disciplinary on-the-job practice and a three-week intensive training
Facilitate Career Development cadre team with vision perspective and unified combat program we help newcomers identify with the CR shift
effectiveness. roles establish ambitions and gain professional confidence.Channels During the reporting period After joining the Company we plan a three-year training
program for them assign mentors organize apprenticeship
The Company adheres to the principles of fair competition By leveraging the learning platform of the State- ceremonies and facilitate their high-quality transformation
and equal opportunit ies establishing and perfecting The total investment in employee training owned Assets Supervision and Administration and rapid growth.talent selection mechanisms. It continuously optimizes 8.4604 Commission and the CR Learning and Innovation reached RMB mil l ion the dual-channel system of management development Center we strengthen the political training and
professional competence of the executive leadership
and professional development further improving and with an average training investment of RMB through activities such as cadre training programs
implementing an optimized career progression plan for thematic education strategic discussions and action- Upgrade educational
technical talents. This plan provides employees with more 830 per person. The training coverage based learning. qualifications of talents
development opportunities and accelerates their growth.rate for employees achieved 100%. Through initiatives such as the national master's and
doctoral pilot projects integrated circuit engineering
Management Professional We select outstanding cadres to participate in special training programs and educational assistance plans we
development channel development channel training programs organized by the CR Learning and provide pathways for upgrading educational qualifications
CR Micro was awarded the title of Excellent Innovation Center. Through thematic studies seminar including from high school education college educationOrganizational Unit for “Study/Dream Pursuit exchanges thematic party courses and investigative graduate education and postgraduate education to doctoralSenior research we enhance the judgment understanding education. The national master's and doctoral pilot projectsmanagement Authoritative Action” in Wuxi from 2019 to 2022. and execution abilities of the cadres. and the integrated circuit engineering training program are
deep-rooted collaborations between the Company and
educational institutions.Middle-level Senior/expert Zhang Sen the Vice General Manager of the management
FBG in charge of research and developmentwas honored as an “Outstanding Young and Based on the Yuanhang Class and the Qihang Establish aGrassroots Class we conduct training activities in various forms Senior technology-sharingmanagement Middle-aged Expert in Wuxi City” in 2023. focusing on political training and management platform
capabilities. This enhances the political literacy and
management abilities of middle-level cadres.Intermediate We foster a conducive internal environment for technology
by promoting internal sharing and communication through
forums such as the Expert Forum and the Business Group
Engineer Forum of the Headquarters. This facilitates cross-
Targeting frontline supervisors line leaders section department and cross-unit exchanges among our scientific
Primary chiefs and supervisors at the grassroots level we and technological talents broadens the horizons of our
primarily provide practical management skills training technical personnel and encourages an innovative mindset.in areas such as job guidance work improvement
CR Micro's dual-channel career advancement work relationships and work safety. This enhances
management efficiency and effectiveness at the
grassroots level.Improve Talent Development
System Enhancing talent development Deepen university-enterprise collaboration
The Company always adheres to the talent development By integrating the dual-channel career development needs Professional competence development system We deepen collaboration and interactions with domestic
universit ies establishing funds for scholarships andphi losophy of “respecting the value of individuals of employees we have established the “LeadershipThis system primarily focuses on the construction of assistance programs to reward outstanding students anddeveloping their potential and elevating their spirits”. It Development System” and the “Professional Competencea professional talent pool. Taking into account the organize students to visit the Company. This enhancescombines employees' personal value pursuit with the dual- Deve lopment Sys tem”. We conduct d iverse and
Company's operational situation and business realities the Company's employer brand image and attractiveness.channel career development needs to create targeted training differentiated talent development activities to comprehensively
we conduct training that aligns with current strategic We collaborate with universities to establish innovation
programs and continuously improve the talent development enhance the professional qualities and abilities of our
goals. Through practical project experiences we enhance internship practice bases conduct joint training programs
system. Regular performance evaluations are conducted workforce supporting employees in achieving better career
the professional competence of talents improve their for engineering practice doctoral and master's degrees
and employees are actively provided with feedback on development.alignment with the organization and elevate the core implement 'customized' part-time master's degree joint
the evaluation results to help them identify issues clarify
competitive capabilities of our talent pool. training and jointly cultivate professional talents. We also
directions and achieve rapid growth. Employees are
organize various forms of campus recruitment events
encouraged to engage in self-learning and self-development
including campus job fairs and live presentations to ensure
supporting them in obtaining higher educational degrees and
a strong reserve of professional and technical talents for
improving the overall quality of the workforce. This promotes
the Company and actively contribute to promoting social
both personal and company development leading to mutual
employment.success.Group-managed Company- Middle-level Grassroots
cadres managed cadres cadres cadres72 CR Micro 2023 Sustainable Development Report 73
Improve Talent Incentive
Employee self-development Mechanisms Implement CR Micro continues to increase efforts in employee care safeguarding their physical and mental well-being. We provide assistance to employees in need and organize
Employee diverse activities to enhance their sense of happiness and fulfillment working together We have formulated and released the Management The Company a t taches g rea t impor tance to and to build a brighter future.Measures for Pursuing Master's and Higher Education has established sound talent incentive mechanisms
Degrees while Employed and the Notice on Supporting continuously optimizing Performance Assessment andEmployees in Applying for Various Professional Technical Incentive Management Measures. We adhere to the “dual CareTitles and Occupational Qualifications (Skill Levels) . These benchmark” of performance and compensation further
measures encourage employees to engage in self-directed increasing incentives by improving the compensation
learning and self-development strengthen continuing management mechanism comprehensive performance and
education and practical experience enhance employees' project assessment management system and relevant sales Balance Work and Life
personal education levels and technical titles maintain the and R&D incentive systems. This aims to stimulate employee
innovative vitality and competitiveness of our talent pool and creativity and enhance the stability of our talent pool.improve the overall quality of our workforce. To improve the quality of l ife and job satisfaction of Walking Club. These associations offer employees a range
employees the Company leverages the platform of labor of artistic sports and entertainment activities. By organizing
In 2023 Zhang Sen the Vice General Manager of the FBG
union activities to establish various associations including the diverse cultural and sports events we aim to alleviate work-
in charge of research and development was honored as an
Sanhao Books Reading Club Ink and Calligraphy Society related stress and create a joyful atmosphere for happy work
CR Micro awarded the title of Excellent “Outstanding Young and Middle-aged Expert in Wuxi City” Recitation Association Sports Clubs Swimming Club and and fulfilling lives enabling employees to enjoy a better life.in 2023 motivating more talents to make new contributions toOrganizational Unit for “Study/Dreamthe high-quality leapfrog development of the Company andPursuit Action” in Wuxi Wuxi.Hiking Activity Conducted Along the “Shili Gallery” of Liangxi The Ink and Calligraphy Society Officially Inaugurated
River
In April 2023 the Wuxi Federation of Trade
Unions held a work promotion meeting for Incentive system of CR Micro
“Study/Dream Pursuit” & “Improvementof Educat ion for Advanced Workers andOutstanding Employees” in Wuxi commending Enhance incentive mechanismsoutstanding organizations in the “Study/Dream Pursuit Action” from 2019 to 2022. By combining performance orientation precise incentives
CR Micro has consistently nurtured the habit of and timely rewards we have optimized the Performance
self-directed and continuous learning among Assessment and Incentive Management Measures of CR Micro
employees receiving the tit le of Excellent continuously implementing differentiated assessments andOrganizational Unit for “Study/Dream Pursuit incentives for different groups of employees.Action” in Wuxi from 2019 to 2022. Employee-Parent Bonding Activities Organized by the FBG Recitation Performances Organized by the Recitation Association
Strengthen technological incentives
We are strengthening incentives for research and development
projects and the transformation of technological achievements
supporting scientific and technological innovation and
implementing milestone incentives for key projects by
supporting scientific and technological innovation incentivizing
sales growth and facilitating strategic development. We are
also refining and optimizing sales incentive programs across all
units to further stimulate employees' enthusiasm and vitality for
innovation and entrepreneurship.Implement equity incentives Theme-Based Team-Building Activities Conducted by the PDBG Dumpling-Making Sessions Organized for Employees
Since going public the Company has established equity
incentive plans to encourage the management team and
key personnel to actively focus on shareholder interests and
strive to improve company performance. In 2021 the second
category of restricted stock incentive plan was approved at
the Shareholders' Meeting of the Company granting a total
of 14.2876 million shares of the Company's stock to eligible
incentive recipients benefiting 1612 individuals. In 2023 339
incentive recipients were granted reserved shares under Phase
1 of the Company's equity incentive plan initiating the approval
and implementation of the DIS mixed reform shareholding plan
for employees.74 CR Micro 2023 Sustainable Development Report 75
Care for female employees Providing assistance and condolences Safeguard Physical and Mental
To tap into the strengths of women and consolidate their The Company actively assists employees in resolving Health During the reporting period
collective power the Company continues to address practical issues and establishes a normalized mechanism
issues concerning the careers health and lives of female for employee support. It conducts visits and condolences
The Company places great importance on the health and The Company achieved the goal of zero
employees strengthening care and support for them. to retired employees and party members facing difficulties
safety of its employees actively implementing relevant laws occupational disease accidents/incidents.Measures such as establishing dedicated lactation rooms organizes activities to provide assistance and warmth and
and regulations such as the Labor Law of the People's
conducting screenings for the “two cancers” among carries out initiatives to address the challenges brought by
Republic of China and the Regulation on Work-Related Injury
female workers and hiring experts to provide necessary high temperatures. The Company is dedicated to doing good A total of
Insurances 10251 employees . It promotes occupational disease prevention and
disease consultation services are implemented to safeguard deeds handling practical matters and resolving difficulties for received occupational health examinations
control knowledge conducts occupational health education
the physical and mental well-being of female employees. employees creating a heartwarming home.and training and establishes employee health stations to with a participation rate of 100% for
create a healthy and comfortable working environment.Furthermore the Company has formulated the Management employee examinations for occupational
Meanwhile it has established platforms such as the
Regulations of China Resources Microelectronics Limited diseases.During the reporting period “Runxinfang” Employee Care Service Station and the“ Xinyue on the Prevention of Sexual Harassment among Female
365” Psychological Care Center connecting with the
Employees to further protect the legitimate rights and
employee care projects of the group providing psychological An investment of RMB 7.187841
special interests of female employees creating a warm and The Company provided assistance to counseling services to employees and their families 24 hours million was made in employee occupational
harmonious working environment. 100 employees in need. a day effectively ensuring the physical and mental health of health.employees.The ICBG carries out a series of It offered aid to 131 employees
with illnesses totaling an amount of RMB
activities to care for and support
female employees 66300.Visits and condolences were made to 95
The ICBG of CR Micro pays attention to the
households of employees in need with an Improve working environment and conditions protect the physical and mental health of workers
health of female employees and organizes
activities to care for and support them including amount of RMB 65000.floral art salons on “International Women'sDay” and lectures on fami ly and ch i ld Employee safety is the foundation for normal production Employees organized by the ATBG to receive training on
first aid knowledgeeducation. Additionally the “Carnation Service operations. The ATBG of CR Micro has establishedStation” is established to provide further care standardized occupat ional health managementservices and support for female employees specifications. By implementing “checklists areaassisting them in comprehensive growth. Bring coolness in the heat warm care identification health examinations and labor protectionin every detail measures” it ensures the occupational health of
employees and creates a safe working environment for
Conduct lectures on the theme of “family education” them. In 2023 136 hazardous factors were identified in
In order to implement the spirit of the Notice compliance and the pass rate for occupational health
Regarding Staff Heatstroke Prevention and examinations was 100%.Cooling Measures for 2023 issued by the
Wuxi Federation of Trade Unions the Labor
Union of CR Micro organized the employeerelief activity themed “Union Brings CoolnessEnsuring Heatstroke Prevention and Health”
in 2023. This activity aims to sincerely care for Checklist establishment Regional identification Health examinations Labor protection measures
the workers who persevered on the frontlines
despite the scorching heat. The leaders of the Carry out occupational By combining the Establish occupational Regularly conduct
Establish the “Carnation Service Station” Company visited and extended their regards to health evaluations to checklist for occupational health records for occupational protection
identify checklists for health management employees in control training establish
representatives of frontline workers presenting occupational health identify and organize areas conduct management checklists
them with cool gift packages and reminding management in control areas and occupational health for protective equipment
everyone to pay at tent ion to heatst roke positions involving acid provide occupational examinations for new specifications and
prevention and cooling measures while working mist acid anhydrides health notifications. hires and departures brands based on control
noise radiation etc. Conduct regular and conduct annual measures. Establish
and take good care of themselves. Furthermore establish monitoring of hazardous fixed-month occupational comparison charts for
checklists for drinking factors and post health health examinations for the wearing of personal
water and canteen notifications in workshop employees in designated protective equipment in
hygiene for daily living bulletin areas. occupational health chemical management
management. positions. areas and implement
“visual management”.76 CR Miicro 2023 Sustainable Development Report 77
Our Performance:
pportunitie
s
O Supplier management performance:New tners The Code of Business Conduct for Suppliers of China Resources Microelectronics Limited Issuedr
ds with P
a A multidimensional comprehensive integrated management platform for supplier management that meets the
oin Han t requirements of integrated management and serves the safety of the supply chain is created enabling full lifecycle J lopmen management of suppliersfor Deve
ly
R Micro
active
es C ility of 100% of suppliers undergoing social impact assessmentsvantag b
es and a
d
on the r
esponsi hes
wn reso
urc is
and tak
es lities it e
stab
ple 100% of suppliers undergoing environmental impact assessments
sed on i
ts o ds tun ulti
Ba industry
deman t oppor with m
nds to t. Seizing
marke borates olla sonance
po n and c eve re 100% of procurement staff receiving sustainable procurement training internallyres velopme anisms ies achi de ech f the industry peration m h-quality st
rateg progress
o
oo g
ategic c hi
into the
str o jointly d
evelop trong imp
etus
partners
t jecting s
grow tog
ether in
and
industry.ctions: Intellectual property management performance:Our A
Strateg
ice Chongqing CR Micro CR Micro Integrated and Xipan Company were honored with the title of “National IntellectualAdvanceration Property Advantageous Enterprise”.Coop
ntellect
ual
feguard
I A Method and Structure for Manufacturing a High-Voltage Trench MOSFET Device by Chongqing CR Micro awarded
Sa
rty Righ
ts
Prope le the “China Patent Excellence Award” by the National Intellectual Property Administration
ponsib
sh Res
Establi hains As of the end of 2023 the Company has obtained a total of 2202 authorized patents including 1838 invention
nt SDGs: Sup
ply C
a patents accounting for 83.47% of the total number of patents.Relev78 CR Micro 2023 Sustainable Development Report 79
Advance CR Micro actively builds an open and diverse strategic cooperation platform continuously promotes technological innovation and the sharing of development
Strategic achievements and creates an efficient and sustainable development model making positive contributions to industry progress and regional economic development.Cooperation
Participate in Industry Exchanges
We actively engage in and broaden our participation in
high-end market activities. Our primary focus is on industry
conferences forums summits annual meetings exhibitions
and other market events. Through these endeavors we
establish and maintain close communication channels with
our valued customers industry experts scholars and media In August 2023 the 2023 Integrated Circuit (Wuxi) In November 2023 we attended the Chongqing
representatives. This facilitates our continuous awareness Innovation and Development Conference Semiconductor Integrated Circuit Industry Development Summit Forum
of industry-related policies and trends. Furthermore we Equipment Annual Conference and Industrial Chain and delivered a themed report titled Bringing Intelligence
foster collaborations with associations industry institutions Cooperation Forum were held concurrently in Wuxi to Chip Development: Constructing the Chip Ecosystem.and other stakeholders to effectively integrate resources Jiangsu Province. CR Micro actively participated setting Combining the trends in the integrated circuit industry
and collectively explore innovative pathways for industry up an exhibition booth to showcase third-generation and the Company's regional layout business layout and
advancement. semiconductors system solutions and module products. development strategy in the integrated circuit industry the
A conference on the ecosystem of the automotive chip report provided insights and prospects for the integratedindustry chain was held under the theme of “Joining circuit industry from three perspectives: The path ofHands for Integrated Development of the Vehicle Chip semiconductor industry development semiconductorIn June 2023 we participated in the 2nd Nansha Chain” promoting mutual exchanges between the potential tracks and trends and contributions to the
International Integrated Circuit Industry Forum Summit. automotive and chip industries and jointly advancing the flourishing development of the Chongqing integrated
Under the theme Harnessing the Power of 'Chip' to integration and innovative development of the automotive circuit industry. The aim was to contribute to the
Foster Prosperous Ecosystem for Integrated Circuits in chip industry. At the opening ceremony of the forum a construction of the integrated circuit chip ecosystem and
the Greater Bay Area we delivered a presentation that keynote speech titled Leading with 'Chip': New Patterns promote the flourishing development of the integrated
encompassed a review of the semiconductor industry's in the Development of the Semiconductor Industry circuit industry.development cycle over the past three decades the Chain was delivered sharing insights on the Company's
trends in China's semiconductor development the relentless efforts and struggles to create a co-building
downstream application structure analysis of the and sharing industry ecosystem.semiconductor industry chain market opportunities in the
semiconductor sector and insights into the development
advantages of integrated circuits in the Greater Bay
Area. Our aim was to facilitate enhanced cooperation Deepen technological cooperation and
and communication among the global integrated circuit exchange for sustainable development
industry stakeholders along the supply chain.W i t h t h e d e v e l o p m e n t o f e l e c t r i c v e h i c l e s Strengthen Brand Building
In March 2023 CR Shanghua and Chengdu ACTT
intelligentization and network connectivity particularly
In April 2023 we took part in the 25th China Integrated achieved a new breakthrough in technology and the explosive growth of new energy vehicles and the Always guided by market demand we strengthen the
Circuit Manufacturing Annual Conference where we rapid evolution of automotive electronic and electrical launched eFlash IP based on a 0.153μm HD BCD
delivered a speech titled Promising Future for the integration of advantageous resources continuously architectures automotive chips have become an process. The combination of Logic eFlash embedded
Development of the New Energy Industry; Steady enrich our product series optimize our product structure indispensable and vital component of the automotive storage technology and BCD technology effectively
Progress in the Power Semiconductor Field . During actively participate in industry exhibitions focus on cutting-industry. Emerging semiconductor technologies such meets the multiple requirements of products in terms
the roundtable discussion we engaged in insightful edge technologies and applications and comprehensively as third-generation semiconductors artificial intelligence of power efficiency performance level compatibility
discussions with entrepreneurs from various sectors showcase the achievements we have made in technological computing chips advanced chip packaging with high and simplifies the number of masks and process
including semiconductor materials equipment EDA innovation and product upgrades. Our goal is to enhance our reliability and 3D packaging techniques continue to steps of the popular eFlash technology in the
and system software. The topics under exploration core competitiveness.emerge and industrialize bringing revolutionary changes industry. This breakthrough once again pioneers
encompassed the establishment of the development and breakthroughs to the entire automotive industry. In a new era in analog and storage processes. Its
framework for the semiconductor industry collaborative the face of tremendous opportunities and challenges applicability in various high-temperature and high-
innovation and future prospects. CR Micro will collaborate to build an industry chain reliability scenarios such as household appliances
ecosystem continuously drive industrial innovation industrial electronics and automotive electronics
ensure the security of the industrial supply chain and has also been further expanded and applied.contribute to the development of the automotive industry.80 CR Micro 2023 Sustainable Development Report 81
Xipan Company participated in the Elexcon 2023 Shenzhen Safeguard Protecting intellectual property means protecting innovation. CR Micro attaches International Electronics Show with its SIP assembly From July 11 to 13 2023 CR Micro showcased a splendid range of products and Fan-Out Panel Level Packaging (FOPLP) great importance to intellectual property protection and has established a
products including power devices modules intelligent sensors and technology sharing the advantages latest developments Intellectual sound intellectual property protection system in its research development supporting system solutions at the 2023 Munich Shanghai Electronics Show. and future plans of Fan-Out Panel Level Packaging. production and operation continuously improving its layout of proprietary
intellectual property. We strengthen training on intellectual property protection
Property Rights for employees to tap into the potential for innovation and promote the
dissemination and application of patent achievements thereby facilitating the
high-quality development of the Company.Enhance System Guarantees
The Company continuously improves its intellectual property
management system and formulates normative management
measures such as the Intellectual Property Management Measures As of the end of 2023
From October 30 to November 1 2023 CR Micro
showcased a splendid series of products including power the Patent Management Measures the Trademark Management
devices modules intelligent sensors and supporting system Measures and the Management Measures for the Layout and The Company has accumulatively obtained
solutions at the Munich South China Electronics Exhibition. Design of Integrated Circuits . Intellectual property protection
is integrated throughout the entire process of the Company's 2549 authorized patents including
business development to ensure robust protection of its innovative
achievements. Simultaneously we conduct intellectual property 1826 authorized and maintained invention
infringement investigations for our own research and development
projects and investment and acquisition projects to mitigate
patents accounting for % of the total
intellectual property infringement risks. In 2023 we filed 479 new 83.26
invention patent applications and the Semiconductor Device valid patents.with ESD Protection Structure and A Method and Structure for
Manufacturing a Medium- and High-Voltage Trench MOSFET
Device were honored with the China Patent Excellence Award.On November 10 and 11 2023 ICCAD 2023 a grand event in the integrated circuit industry was held in Guangzhou. CR Micro demonstrated its Three subsidiaries of CR Micro were awarded the title of “National Intellectual Propertycapabilities in wafer manufacturing and mask manufacturing attracting visitors to stop and exchange ideas. Advantage Enterprises” in 2023
CR Micro has deeply cultivated the semiconductor field adhering to technological self-reliance and maintaining stable growth in
high-quality patent applications. Through a scientific management model it has established a sustainable development ecosystem
for intellectual property.In 2023 the National Intellectual Property Administration formulated and released the List of National Intellectual Property
Demonstration Enterprises and Advantageous Enterprises. CR Micro's subsidiaries Chongqing CR Micro CR Micro Integrated and
Xipan Company collectively received the title of “National Intellectual Property Advantage Enterprises”. This honor is a significant
recognition of the overall technical strength and brand competitiveness of the Company.The invention patent titled A Method and Structure for Manufacturing a Medium- and High-Voltage
Trench MOSFET Device was awarded the “Chinese Patent Excellence Award”
The Chinese Patent Award jointly organized by the China National Intellectual Property
Administration and the World Intellectual Property Organization (WIPO) is currently the highest
award in the field of patents in China and is recognized by the United Nations' WIPO.In 2023 A Method and Structure for Producing a High-Voltage Trench MOSFET Device by
Chongqing CR Micro was awarded the “China Patent Excellence Award” by the National
Intellectual Property Administration. This award is the first national-level patent award in the
history of China Resources Microelectronics (Chongqing) and the first national-level patent
award independently applied for and obtained by CR Micro.82 CR Micro 2023 Sustainable Development Report 83
Enhance Intellectual Property
Establish CR Micro continuously improves its supply chain management system Training enhances the standardization of supply chain management safeguards theResponsible legitimate rights and interests of suppliers and is committed to building a To enhance employees' comprehension of safeguarding and conducts activities themed “Preserving Intellectual sunshine transparent efficient supply chain system. At the same time theintellectual property and their competence in accessing Property Advancing Comprehensive Innovation”. These Company integrates supplier social responsibility management into its daily
technical information related to patents the Company endeavors encourage employees to take initiative exhibit Supply Chains operations promoting the enhancement of suppliers' capability to fulfill social implements specialized intellectual property training utilizing enthusiasm and unleash their creativity all with the objective responsibilities.a combination of online and offline methods. It coordinates of maximizing the value of innovation through proficient
seminars concerning analysis reports on patent layouts management of intellectual property at an elevated level.Implement Responsible
Intellectual property training Procurement
The Company has established regulations such as the
Control led Mater ia l Procurement and Management During the reporting period
Specifications the Confidentiality Management System and
the Outward Investment Management System to provide
solid institutional guarantees for responsible procurement 100% of suppliers undergoing social
implementation. Through the CR Shouzheng platform impact assessments
electronic procurement is promoted and implemented to
ensure transparency in procurement. Furthermore to further
promote local industrial development the Company actively
% of suppliers undergoing
promotes a policy of parallel global and local procurement 100
prioritizing the procurement of materials from the Company's environmental impact assessments
local area contributing to the vigorous development of local
enterprises and the economy. 100% of procurement staff receiving
sustainable procurement training internally
Sunshine procurement rules of CR Micro
Over 60 case sharing and empowermentAdhere to the principles of “openness fairness training sessions conducted with more thanimpartiality honesty and creditworthiness”.Patent knowledge training 20 key suppliers
All suppliers participating in the procurement
business of CR Micro must sign the Sunshine
quality objectives established
Declaration and provide a telephone number for 35 50
complaints and reports in procurement documents. targeted improvements implemented and
53 communication meetings held. In
Supplier penalties: Dishonest suppliers engaged
2023 the abnormality rate of key suppliers
in collusion bid-rigging or fraudulent activities
are recorded on the Shouzheng platform and are significantly decreased by 64% compared
prohibited from participating in the procurement to the previous year
business of CR Micro during the prohibition period.Three projects of CR Micro received the
“Improvement Level” achievement award
by the national QC team84 CR Micro 2023 Sustainable Development Report 85
Strengthen Supply Chain
Management Preliminary Evaluation of New Suppliers Supply Chain Risk Management Enhance Quality and Safety Systems
The Company has established systems such as the Supplier The relevant departments of the Company jointly participate We continuously improve the supply chain risk prevention We have established systems such as the Supplier Quality
Management and the Regular Performance Evaluation of in conducting item-by-item audits of new suppliers including and control system by evaluating supplier product categories Control Procedures and the Supplier Performance Review
Suppliers to develop a sound supplier management system. their material sources system certifications environmental delivery performance environmental and quality system Operation Specifications to strengthen the quality and safety
It focuses on the supplier's full lifecycle management protection practices and hazardous chemical management. certifications compliance with local laws and regulations management of the supply chain. We conduct regular quality
platform to enhance the supply chain's risk management and disputes related to raw material procurement. Based on audits of suppliers to promptly identify issues and supervise
capabilities. It strengthens quality and safety management this evaluation we classify and manage suppliers according the corrective process. We also organize training activities
in the supply chain ensuring that suppliers comply with to risk levels and issue timely warnings. For suppliers with for quality and safety management to continuously enhance
relevant ethical safety health human rights social and higher assessed risks we establish a high-risk material list suppliers' capability to guarantee product quality and reduce
environmental performance requirements. The Company and strengthen effective interaction with production lines product quality and safety risks from the supply chain.requires the signing of the Hazardous Substance Guarantee and quality teams. We track and promote physical validation
Certificates and the submission of the Restricted Substance on the production line expedite the process of diversifying
Inquiry Forms along with third-party HSF testing reports to our supply chain enhance the risk response capabilities
facilitate green and low-carbon supply chain management of the supply chain and actively promote its sustainable
and enhance accountability capability. development.Process for preliminary evaluation of new suppliers
Conflict Mineral ManagementPurchase Department Environment Health and Safety QC Department We adhere to the business philosophy of “not using conflict
(EHS) minerals in our operations”. The Company recognizes that
Business license registered capital and Legal and regulatory compliance Quality system certificate engaging in mineral extraction trading processing and
financial statements certificates and Material Safety Data Sheet
Existing customer information export in conflict-affected and high-risk areas not only causes (MSDS)
Industry position industry reputation core significant environmental damage but also carries substantial
products and core team Production and operation permits for social negative impacts. We commit to not sourcing conflict
hazardous chemicals
Production capacity delivery assurance minerals from conflict-affected and high-risk areas. Tangibles
capability etc. Environmental impact assessment report
We continuously advance the work of our supply chain
system in conflict mineral management. In 2023 we initiated
Purchase Department TB committee QC Department the development of a supplier code of conduct for business
practices and issued the Code of Business Conduct for
Current situation analysis core TB evaluation form > 80 points Control plan Suppliers of China Resources Microelectronics Limited .competencies of new suppliers This code clearly defines the responsibility of suppliers to
Measurement equipment To reduce product quality and safety risks weaknesses and corresponding strategies refrain from using conflict minerals. Suppliers are required
potential areas of collaboration with CR from the supply chain we always adhereLong-term data (Certificate of to disclose the presence of conflict minerals (gold/tantalum/Micro to the principle of “on-site reality andAnalysis COA) tin/tungsten) and conduct due diligence on the source and tangibles”and emphaszie prevention and
Business evaluation traceability of these minerals ensuring that the metals used
risk control and conduct on-site audits.and sold by suppliers are free from any conflict situations.In 2023 we completed on-site audits of
Full lifecycle management A multidimensional and comprehensive 217 domestic suppliers with audit
platform for supplier management that
meets the requirements of integrated coverage spanning 18 provinces andThrough the entire process of “introduction delivery management and serves the safety of municipalities across the country.management assessment and exit” focusing on the three the supply chain enabling full lifecycleaspects of “procurement as the main approach quality management of suppliersparticipation and outsourcing supplementation” we aim to Procurement Outsourcing
as the main supplementation
establish a multidimensional and comprehensive platform approach
for supplier management that meets the requirements of I Quality nt participation
integrated management and serves the safety of the supply rodu tc iEx
chain enabling full lifecycle management of suppliers. This tion
platform ensures the efficiency and sustainability of the Deli ntvery sme Code of Asses
supply chain and jointly promotes the healthy development Management Business
of the industry and supply chain. Conduct for
Suppliers of
Starting with the pilot management of procurement suppliers and
China Resources
gradually expanding and improving it
Microelectronics
Limited
On-site
alit
y
Re
Initial screening review Detailed screening review86 CR Micro 2023 Sustainable Development Report 87
Quality and Safety Management Initiatives for Suppliers
Conduct empowerment training and share it with suppliers
Quality evaluation Empower management Implement training initiativesBased on the four aspects of “quality business We assist suppliers in establishing quality We organize special training sessions on qualitydelivery and service” we regularly assess management systems to improve product management and share cases of product
and evaluate suppliers' performance. Excellent qual i ty . We also help suppl iers enhance quality and safety risk control. Additionally we
suppliers are given opportunities for increased production processes technology raw materials hold periodic training sessions on environmental
cooperation while inadequate suppliers are packaging transportation and other aspects to and social aspects to strengthen suppliers'
required to make improvements and are closely reduce production costs. accountability.monitored.In 2023 more than 60 case sharing and
In 2023 quality objectives were set for 35 empowerment training sessions were conducted
key mater ia l suppl iers wi th 50 targeted with over 20 major suppliers. Standardized
i m p r o v e m e n t s i m p l e m e n t e d a n d 5 3 requirements for supplier product management
communication meetings held. The abnormality and key process management methods were
rate of key suppl iers showed signif icant established to promote the implementation of
improvement decreasing by 64% compared to control measures for automotive electronic
the previous year. materials continuously improving the level of
supplier quality management.88 CR Miicro 2023 Sustainable Development Report 89
w Underta
kings
Ne
cate to So
ciety
Dedi r Future
Promote
a Bette s
agement
focuse
n and Our Performance:a s
ngthens
safety m enes
stre the safe
ty awar
sly nce of safety. We
o continu
ou a n
R Micr ion strive
s to enh
es the fo
undatio to
C giving
back
n safety
product d solidifi ent with aritable
o ll employ
ees an developm ting chrporate ly cultiv
a ial
skills of
a
ronizing
co
lization d
eep
We fulfill
our soc RMB 21.97 million invested in safety production
st on syn
ch ita
i rev me
nt.ins supportin
g rural elop
iety the fruit
s of dev
soc nd sharin
g
tical actio
ns. The Annual Action Plan of CR Micro for Strengthening Safety Management was issued and a
causes
a prac
ilities thro
ugh three-year special campaign was launched for safety production rectification
responsib
In 2023 RMB 650000 was donated to charity and nearly RMB 280000 contributed to
rural consumption
tions:
Our Ac The “Nuan'xinhumiao” educational assistance program was initiated assisting 86
Safe
Ensure underprivileged students in completing their studiesn
Produc
tio
e
Social
Welfar
The “Yishanxin” old clothes recycling project was selected as an excellent volunteer Foster
in service project in Wuxi Cityte
Particip
a ing
munity
Build
Com
DGs:
Relevant
S90 CR Micro 2023 Sustainable Development Report 91Ensure CR Micro actively implements the important instructions and requirements of General Secretary Xi Jinping regarding safety production. Following the safety concept of “life The safety production committee of CR Micro has deployed and Enhance Safety Information ManagementSafe first” we aim for “zero accidents zero injuries and zero pollution” as our work goal.arranged the Company's safety work
We establish and improve a safety management system intensify the identification and
rectification of hazards strengthen the construction of a safety culture and effectively Establish a dual prevention mechanism for safety production
Production control occupational health and safety risks related to production and operation. risk control and hidden hazard investigation and improve
the dual control information management system. Using the
“Three Platforms and One Window” system as an effective
tool real-time display of safety risk management information
is carried out promoting and improving the Company's dual
Safety Management System
Wuxi CR Shanghua was awarded control management level.the title of “DemonstrationThe Company optimizes and improves the EHS managementsystem continuously strengthens the construction of Enterprise for Safety Production”
safety regulations and enhances the level and efficiency
of safety management. It is committed to establishing a
comprehensive safety production management system that CR M i c r o ac t i v e l y a s sumes i t s soc i a l
extends horizontally and vertically. responsibility for safety production continuously Dual control information management system
conducts safety education and training for
Dur ing the report ing per iod the Company act ively employees organizes emergency dr i l ls
implemented the action plan of strengthening safety enhances the safety awareness and evacuation Dual control information Safety check Hazard investigation Dual control information
management in state-owned enterprises. It refined and abilities of all staff members and promotes Publicity platform Reporting platform Governance platform Update window
implemented the action plan for the year of strengthening the improvement of safety management and
safety management in the Group. Based on the actual emergency response capabilities to a new level.situation of CR Micro and its subsidiaries the Annual Action In June 2023 CR Shanghua was awarded the Address the issue Address the issue of Address the issue of Address the basic
title of “Demonstration Enterprise for Safety of publicizing “dual “three managements closed-loop governance information issue of the Plan of CR Micro for Strengthening Safety Management control” information and three requirements” adopt a method to track “Three Platforms” bywas issued. The Company solidly carried out the action plan Production” in the Wuxi High-tech Zone. required by regulations in safety production laws the improvement of safety continuously updating and
for the year of strengthening safety management formed a and reflect the and provide necessary hazards promote hidden improving the information
stage summary report consolidated the foundation of safety informatization aspect in means for departments to hazard rectification and forming a “PDCA” cycle.safety production laws. fulfill their safety production achieve inherent safety.production and comprehensively improved the level of safety
responsibilities.production management.During the reporting period
RMB 21.97 million invested in safety
production
Safety Hazard Investigation Fire Safety Hazards
142549 Implement the Main Responsibility For Safety training hours devoted to
safety training achieving a coverage rate of The Company held an emergency meeting on safety Enhance emergency response plans standardize response The Company considers the establishment of a safety
100 production in 2023 and formulated the EHS Accident procedures effectively manage and prevent fire safety % production responsibility system as the core and foundation and Incident Accountability Measures of China Resources hazards that may arise during operations and control fire
of its EHS work. In accordance with the laws and regulations Microelectronics Limited . It organized special safety safety hazards at the source.
527 such as the Production Safety Law of the People's Republic of safety emergency drills organized investigations and rectif ication focusing on various
15955 China and the Regulations of Jiangsu Province on Work Safety production parks of the Company. Supervision inspections
Regularly conduct emergency drills and fire skills training to
involving participants the Company has formulated multiple systems including the enhance the capability to handle emergency incidents.and rectification implementation of safety production hazards“Safety Production Management Objectives and Responsibility were carried out concerning aspects such as electrical safetyNo major or above accidents occurred and System” and the “Level Four Enterprise Occupational Supervise units at all levels to establish dedicated and fire safety and the daily use and supervision of hazardouspart-time fire brigades provide guidance on equippingno reported cases of occupational diseases Health and Safety Responsibility Regulations”. It has refined chemicals. fire equipment and extinguishing agents conduct fire
and improved the safety production responsibility lists for the
inspections and ensure fire safety responsibilities are
71 Company's top leader EHS responsible persons and key full-time safety management personnel implemented.management personnel as well as the annual safety production
employed including 38 registered safety work task lists. The Company has organized the signing of Utilize new technologies such as the Fire Cloud Intelligent
engineers occupational health and safety responsibility commitment letters Platform and CCTV surveillance systems to collect fire
at all levels ensuring the hierarchical decomposition of safety information data implement personnel emergency duty
production management objectives and responsibility systems and improve the level of fire safety management and daily
and implementing occupational health and safety responsibilities emergency management efficiency.at every position. Efforts are being made to promote the safety
production responsibility system.92 CR Micro 2023 Sustainable Development Report 93
Hazardous Chemical Hazards Safety Culture Construction Implement Safety Training and Promotion
Other practical initiatives
Adhering to international management regulations for While continuously advancing safety risk prevention Adhering to the action policy of strengthening safetyhazardous chemical management we formulate the Safety and control the Company is committed to creating and Strengthen the construction of the safety personnel team production throughout the year taking advantage of “SafetyManagement System of China Resources Microelectronics developing a safety culture and atmosphere. By improving encourage grassroots employees to participate in national Production Month” and various special activities organized
Limited for Hazardous Chemicals and the Special Three- professional technical examinations such as the National the fundamental safety production capabilities of employees by the Group the company launches safety production
Registered Safety Engineer and Registered Fire Engineer
Year Action Implementation Plan of CR Micro for Hazardous conduct diverse safety culture-themed activities promote learning videos organizes safety production knowledge and provide cash rewards to employees who obtain
Chemical Rectification implement special safety inspections safety production management concepts strengthen quizzes and conducts activities such as safety production certifications.for hazardous chemicals and focus on identifying safety employees' safety awareness and fortify the ideological month theme events Ankang Cup labor skill competition
risks hazards and management issues during transportation defense line of safety production. Improve the incentive mechanism for safety production and reporting hazards through mobile apps to create a
and storage of hazardous chemicals; we strengthen the positions conduct monthly assessments of grassroots strong safety atmosphere. At the same time we actively
safety management of precursor chemicals and flammable safety management personnel and introduce safety conduct hierarchical and classified training and increase the
and explosive chemicals strictly manage hazardous EHS performance to enhance enthusiasm for EHS training efforts for team leaders and key personnel in EHS
chemicals and eliminate potential hazardous incidents. Enhance Safety Management Capability management positions. management positions of the Company; we expand the
coverage of training to promote the improvement of safety
Actively participate in group safety production knowledge production awareness among all employees.Safety Management System of China Resources Microelectronics Solidly promote the construction of the “Three Safety and management capability training and assessments toLimited for Hazardous Chemicals Competencies” strengthen accident source control improve safety production management capabilities.process control of hazards and emergency response after
accidents promote the improvement of safety management Practical promotion conducted for cardiopulmonary resuscitation
emergency skills
mechanisms enhance the professional level of safety
management teams and strengthen safety managementawareness thereby achieving “effective risk preventionsound governance of hazards timely incident response andeffective prevention of accidents” and establishing a sound
long-term mechanism for safety production.Safety training conducted for key position team leaders
Conduct comprehensive on-site audits of specialized work.Affiliated units coordinate the promotion of compliance
construction through the establishment of an information
management system improve system management
enhance risk control measures and enhance risk prevention
capabilities.In 2023 the “Three Safety Competencies”
construction in Dongguan and Shenzhen
bases was prioritized as planned.Enhance safety
management capability
Effective risk prevention Sound governance of Timely incident response
hazards
Promote the enhancement
of safety management
Initial assessment of Overall improvement mechanisms.the “Three Safety of the “Three SafetyCompetencies” Competencies”
Enhance the professional
Establishment level of the safety
of evaluation management team.criteria for the“Three SafetyCompetencies”
Strengthen safety
management awareness
Diagnosis of issues Extraction of excellentrelated to the “Three practices for the “ThreeSafety Competencies” Safety Competencies” Foster a conducive safety
culture atmosphere
Dongguan base Shenzhen base
Promotion
Precise
quantification94 CR Micro 2023 Sustainable Development Report 95
Foster Social CR Micro is committed to integrating social responsibility into its business The ATBG visited Xihui Community in Liangxi District to carry out the “Yishanxin” activityoperations and development. It participates in volunteer public welfare activities
Welfare supports rural revitalization and reciprocates care from all parties through practical actions. It actively integrates into society serves society and practices the concept
of a community with a shared future for mankind making contributions to the
harmonious development of society and the well-being of the people.Engage in Volunteer Activities Tips of CR Micro
The Company vigorously promotes the spirit of volunteers “Y ishanx in” i s a pub l i c we l fa re andemphasizing “Dedication Friendship Mutual Assistance environmental protection project init iatedand Progress” and actively participating in social welfare by the Company in collaboration with the
undertakings. Labor Union of Wuxi Civi l Affairs Bureau
and the “Runzhishou” platform under the
environmental protection department of ChinaResources. Adhering to the concept that “every Implement funding for educationalBuild a Public Welfare Brand piece of old clothing represents a kind heart” assistance Organize voluntary blood donation
the Company carries out public welfare and
In order to promote equal and balanced development of Blood is the source of life and love is the dawn of life. Over
environmental protection activities for used
We establish the “Yishanxin” public welfare brand of CR education the Company in collaboration with the Wuxi Red the years the Company has actively encouraged party
clothing recycling. The aim is to promote the
Micro organize volunteer service teams to visit shopping Cross Society and Wuxi Education Bureau organizes paired members cadres and frontline employees to participate in
recycling of old clothes while also making
malls schools and communities conduct used clothing assistance programs and establishes the “Nuan'xinhumiao” voluntary blood donation activities conveying positive social
it an effective approach for the Company
recycling activities and public education lectures continuously team of CR Micro. Through donating educational assistance energy through practical actions. In 2023 a total of 175
to contribute to “dual carbon” goals and
promote public welfare and environmental protection and funds and materials we assist underprivileged children in employees donated a heartfelt amount of 52900 milliliters
advocate for public welfare and environmental
advocate the concept of resource conservation through the completing their studies and transmitting care and positive of blood fully demonstrating the spirit of dedication and
protection. It is a beneficial exploration of CR
reuse of old clothes. In 2023 more than 10 used clothing energy for their growth. In 2023 we targeted and paired 86 helpfulness among the vast staff of CR Micro.Micro's fulfillment of social responsibilities.recycling events were held resulting in a total collection financially disadvantaged students from Wuxi and donated a
of 5.88 tons of old clothes. The “Yishanxin” project was total of RMB 86000 for their education.successfully selected as an excellent volunteer service project
in Wuxi City.Empower Rural Revitalization
The PDBG visited Luoshe Central Primary School in Wuxi to carry out the “Yishanxin” activity
The Company has taken on the important mission of rural
revitalization proactively focusing on industries education
consumption and other fields. Tailoring our efforts to
local conditions we have implemented measures such as
consumer support pairing for joint construction and material
donations to effectively contribute to rural revitalization.In 2023 leveraging our organizational and resource
advantages the Company deeply cultivated the path of
rural revitalization through consumer support. We activelyparticipated in the “Consumer Support by a State-ownedEnterprise for Rural Development Week” event contributing
nearly RMB 280000 to agricultural consumption. The
purchased agricultural products mainly came from 256
In order to promote equal and balanced development of education counties designated for support by state-owned enterprises
the Company in collaboration with the Wuxi Red Cross Society and
21 counties in Xizang 16 counties in Qinghai Province 7
Wuxi Education Bureau organizes paired assistance programs and
counties in the original Central Soviet Area of the south of
establishes the “Support Education with Warm Chips” team of CR
Micro. Through donating educational assistance funds and materials Jiangxi Province as well as counties supported by the State-
we assist underprivileged children in completing their studies and owned Assets Supervision and Administration Commission
transmitting care and positive energy for their growth. by targeted and paired assistance. This enhanced the
“hematopoietic” function of the supported regions
- Wuxi Red Cross Society stimulated rural development vitality and assisted in achieving
common prosperity.96 CR Micro 2023 Sustainable Development Report 97
Participate in Future Standing at the forefront one can truly comprehend the towering waves and fierce winds; only ascending to a great height and looking into the distance can one
Community Building Prospects behold the vastness of the sky and the lofty heavens. Starting at the new point in 2024 the second half of the “14th Five-Year Plan” period unfolds with a new
blueprint outlined in the continuation of our mission a new chapter composedCR Micro upholds the values of “honesty and trustworthiness through steadfast progress and a new masterpiece written through unremittingperformance orientation people-oriented and innovative efforts.development”. We actively assume social responsibility through
a series of public welfare activities including popular science With determination we should move forward and fulfill our mission. We
education in schools and organizing student visits and internships will promote the highly integrated development of technological innovation
demonstrating the responsibilities of a state-owned enterprise. and high-quality growth actively advance forward-looking research and
development projects and extensively cover high-growth application areas such
as industrial control automotive electronics and smart sensors that urgently
require technological breakthroughs supporting the innovation-driven strategy.Following the path of “technological innovation” and “application-driven”
The ICBG conducted the “Popular Science Education in Schools” we will enhance the depth and breadth of product development strengthen
program with Wuxi Taihu Gezhi Middle School our technological reserves and make greater contributions to the progress and
development of the semiconductor industry.With unwavering belief we will forge ahead steadily. We will persist in deepening
the IDM business model leveraging our manufacturing capabilities to accelerate
the development of our product business. Continuously deepening our presence
in the Yangtze River and Three Regions we will establish an industrial base
for automotive-grade power semiconductors and an industrial ecosystem for
automotive chips. We will build a leading-edge mask manufacturing base a third-
generation semiconductor research and manufacturing base and a technological
innovation center for product and application industrialization.Gathering momentum we will march forward courageously. We will continue to
advance a new round of deepening reforms benchmarking against world-class
enterprises to comprehensively enhance our value creation capabilities. We will
uphold the tower of quality strive for excellence and build a high-quality efficient
and trustworthy corporate brand. We will explore and optimize our customer
structure product portfolio and end applications to better meet market needs. We
Semicon actively participated in community union activities
will strengthen the bridge of service persist in innovation and respond sincerely
and passionately to the expectations of customers partners and shareholders
creating a company that is highly respected by society trusted by shareholders
and loved by employees.98 CR Micro 2023 Sustainable Development Report 99
Appendixes
Key Performance Indicators
Responsibility Indicator Unit 2021 2022 2023 Responsibility Indicator Unit 2021 2022 2023
scope scope
Contract fulfillment rate % 100 100 100 Comprehensive energy consumption 10000 tons 7.91 8.84 8.61
FBG：93.12 FBG：93.25 FBG：93.26 Comprehensive energy consumption per RMB Tons of standard coal 0.0785 0.0683 0.0655
10000 of output value (comparable price) per RMB 10000
Comprehensive energy consumption per RMB
PDBG：91.90 PDBG：93 PDBG：92.64 Tons of standard coal 10000 of added value (comparable price) 0.1353 0.1301 0.1190
Customer satisfaction % per RMB 10000
Investment in energy conservation and emission
ICBG：93.33 ICBG：91.84 ICBG：92.62 RMB 100 million 0.135reduction technology upgrades 0.130 0.268
ATBG：87.83 ATBG：90 ATBG：92 Total investment in environmental protection RMB 100 million 0.27 0.55 0.48
Environmental
Customer complaint handling rate % 100 100 100 Total CO emissions Ton 542352.54 608812.17 556847.70
responsibility 2
6 吋：99.65 6 吋：99.57 6 吋：99.56 CO2 emissions per RMB 10000 of output value Tons per RMB 10000 0.54 0.47 0.42
8A：99.56 8A：99.60 8A：99.69 Sulfur dioxide emissions Ton 0.5378 0.5388 0.7598
8B：99.27 8B：99.32
Customer 8B：99.32 Volatile organic compound emissions
Ton 144.54 32.03 64.43
responsibility
Product qualification rate % 6C：99.94 6C：99.93 6C：99.89 Ammonia nitrogen emissions Ton 6.6898 6.9858 6.9794
T1：99.94 T1：99.94 T1: 99.94 Chemical oxygen demand (COD) emissions Ton 122.505 135.318 141.269
T2：99.62 T2：99.80 T2：99.86 Nitrogen oxide emissions Ton 4.0890 4.6622 4.7025
A3：99.80 A3：99.84 A3：99.85 Operating income RMB 100 million 92.49 100.60 99.01
R&D Investment RMB 100 million 7.13 9.21 11.54 Total profit RMB 100 million 23.54 26.53 16.87
Number of research and development personnel Person 822 1413 1597 Net Profit RMB 100 million 22.58 25.99 14.38
Number of contributions to international national Nos. 0 0 Net profit attributable to owners of the parent 0 RMB 100 million 22.68 26.17 14.79
or industry standards company
Sales revenue of new products RMB 100 million 19.78 31.35 26.72 Total assets RMB 100 million 221.91 264.58 292.15
Number of new patents granted Nos. 183 231 193 Net assets RMB 100 million 175.00 206.96 236.30
Economic
Major innovation awards Nos. 11 11 14 responsibility Weighted average return on net assets % 15.48 14.04 7.15
Number of patents held and applied for Nos. 4472 4071 5896 Return on total assets % 10.71 11.04 6.30
Supplier certification rate for quality Value-added rate of state-owned assets % 119.78 117.55 107.87
environment and occupational health and % 7.94 9.21 9.86
safety systems Profit margin on cost and expenses % 32.64 34.02 19.78
Number of strategic cooperation agreements Nos. 33 23 35 Overall labor productivity RMB 10000/person 51.32 54.82 46.46
signed
Expenditure on industry-university-research RMB 10000 390 440 507 Total investment in fixed assets RMB 100 million 12.66 16.23 27.70
collaboration
Number of violations and penalties Times 0 0 0 Total tax payment RMB 100 million 4.95 5.67 6.08
Partner
responsibility Number of significant negative public relations Nos. 0 0 0 Total revenue and taxes RMB 100 million 28.13 30.99 20.77
incidents handled
Percentage of suppliers undergoing social % 100 100 100 Total number of employees Person 8989 9470 10251
impact assessments.Percentage of suppliers undergoing % 100 100 100 Signing rate of the labor contract % 100 100 100
environmental impact assessments.Employee
Total number of suppliers Nos. 2705 3425 3639 responsibility Coverage rate of social insurance
%100100100
Percentage of procurement staff receiving % 100 100 100 Coverage rate of medical examination % 100 100 100
sustainable procurement training internally.N u m b e r o f e m p l o y e e s r e c e i v i n g h e a l t h Person 8989 9470 10251
examinations100 CR Micro 2023 Sustainable Development Report 101
Responsibility
Indicator Unit 2021 2022 2023 Index Referencesscope
Proportion of female managers (directly managed
by the departments of the Group and its subordinate % 15 22 20
Primary title Secondary title Guidelines for Corporate Social Responsibility Report enterprises) Reporting in China (CASS-ESG5.0) location
Number of disabled employees Person 37 31 33 About this Report P1.1-1.3 P02
Coverage rate of employee training % 97 97 100 Message from Leadership P2.1-2.2 P04
Per capita training investment RMB 10000/person 0.07 0.07 0.08 Company Profile P06
Total investment in employee training RMB/year 6795635 6914105 8460434 Organization Structure P08
P4.1-4.3
Employee satisfaction with the canteen % 78.48 82.56 82 About CR Micro Corporate Strategy P09
Employee Employee satisfaction with the dormitory % 91.20 91.98 92.6 Corporate Culture P09
responsibility
Assistance provided to employees in need Number of individuals
or households assisted 238 188 100
Honors in 2023 G3.11 P10
Topic 1: Seize the clean development opportunity and deepen the
Investment in assisting employees in need RMB 10000 23.73 7.42 2.99 P3E1.8V1.1-1.4V2.1-2.4 P16application of low-carbon products
Visits and condolences to families of employees in need Merchants 151 47 95 Topic 2: Protect clear waters and green mountains and take
multiple measures to protect the ecological environment of the P3E4.1-4.3V4.4-4.5 P18
Investment in visits and condolences to families of Yangtze RiverRMB 10000 5.46 3.63 6.50
employees in need
Sustainable Development Management G2.1-2.4G3.1-3.10 P20
Support for the education of children in need number of individuals 0 0 86
supported New Journey Regulate Corporate Governance Activities P28
Amount spent on supporting the education of children in need RMB 10000 0 0 8.6 Gather our Hearts
and Minds to Draw G1.1-1.11
number of individuals a New Chapter
Promote Risk Compliance P33
Assistance provided to employees with illnesses 321 78 131
supported
Product innovation and R&D V2.1-2.8 P40
Investment in assisting employees with illnesses RMB 10000 25.83 4.54 6.63 New Momentum
Serve Customers Enhancing the quality control
to Share a Better S4.1-4.2 P46
Number of new employees hired (total number of recruits
Future
Person 1917 2343 2766 Offering high-quality services S4.3-4.9 P50
during the reporting period)
Address Climate Change E21-2.5E5.1-5.4V4.1-4.5 P56
Expenditure on charitable and public welfare activities RMB 10000 75 75 65 New Developments
Create Sustainability Practice Green Production
Investment in rural revitalization 0 Through Green
E2.9-2.13E3.1-3.5E3.6E3.8E3.10 P59
RMB 10000 0 28 Operations
Enhance Green Management E1.1-1.4E1.6-1.9E2.14-2.15 P64
Number of volunteers Person 925 985 1121
Protect Employee Rights and Interests S1.1-1.4S1.6-1.8 P68
Number of general and major accidents Times 0 0 0 New Vitality
Empower Empower Employee Development S2.1-2.4 P70
Mortality rate per thousand individuals ‰ 0 0 0 Employees for
Mutual Growth Implement Employee Care S1.10-1.11S3.1-3.3 P73
Number of accident-related deaths Person 0 0 0
Advance Strategic Cooperation V2.5-2.8 P78
Number of employee fatalities Person 0 0 0 New Opportunities
Public Join Hands with Safeguard Intellectual Property Rights
Partners for V2.4V2.7 P81
responsibility Training hours on safety Duration 102297 91609 142549 Development
Establish Responsible Supply Chains S5.1-5.3S5.6-5.7V2.5-2.6 P83
Coverage rate of occupational health and safety training % 100 100 100
Ensure Safe Production S3.4-3.11 P90
Safety production investment RMB 100 million 0.2003 0.2208 0.2197 New Undertakings
Dedicate to Society Foster Social Welfare V3.1-3.7 P94
Number of safety emergency drills 309 304 527 Promote a Better Times Future
Participate in Community Building V3.4 P96
Number of participants in safety emergency drills number of individuals 11009 9612 15955
supported
Future Prospects A1 P97
Number of dedicated safety management personnel Person 52 63 71
Key Performance Indicators A2 P98
Number of registered safety engineers Person 28 33 38
Appendixes Index References A4 P101
Number of occupational disease cases Person 0 0 0
Opinions and Feedback A5 P102
Investment in employee occupational health and safety RMB 10000 680.32 894.41 718.78102 CR Micro
Opinions and Feedback
Esteemed Readers:
Thank you for reading the 2023 Annual Sustainable Contact address: No. 14 Liangxi Road Wuxi City
Development Report of China Resources Microelectronics Jiangsu Province
Limited.Zip code: 214061
In order to provide you and other stakeholders with more Contact No.: +86-510-81805891
professional and valuable information and to effectively Fax No.: +86-510-85872470
enhance the Company's capability and level of fulfilling
Official website: www.crmicro.com
corporate social responsibility we sincerely hope to hear your
valuable opinions and suggestions. We look forward to your
feedback through the following channels:
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CR Micro on the economy disclosure in the Report
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3. Do you think the Report reflects the significant impact of 7. How would you rate the overall quality of written
CR Micro on the environment expression in the Report
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4. Do you think the Report reflects the significant impact of 8. How would you rate the overall design style of the
CR Micro on society Report
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Open-ended questions
9. Which topics in the Report are of most interest to you 10. Do you have any other comments or suggestions
regarding the Report104 CR Micro
