Stock Code 002139.SZ
Co-Innovating A Smarter Future
Topband
ESG & Social Responsibility Report 2023
Shenzhen Topband Co.Ltd.Bulding A More Intelligent And Low-Carbon WorldAbout the Report
This is the 4th Social Responsibility Report and the 3rd ESG & Social Responsibility Report issued by Shenzhen Topband Co.Ltd. since its listing. It discloses Topband's activities and performance in the main areas of sustainable development including
environment society and governance. The Report was considered and approved at the 9th Meeting of the 8th Board of Directors of
Topband held on March 25 2024 and was released together with Topband's Annual Report 2023.Time range
January 1 2023 - December 31 2023.Some parts of the Report involve the information of previous years to ensure its integrity.Data and content
The data and cases that are used in the Report are all from official documents statistical reports and other documents provided by
relevant departments of the Company. The Report does not contain any false information or misleading statements and Shenzhen
Topband Co. Ltd. is responsible for the truthfulness accuracy and completeness of the content herein. Unless otherwise specified the
monetary amounts involved herein are expressed in RMB.Basis of preparation
The Report is prepared based on the Self-regulatory Guidelines for the Companies Listed on the Shenzhen Stock Exchange No. 1
- Standardized Operation of the Companies Listed on the Main Board and the Self-regulatory Guide for the Companies Listed on the
Shenzhen Stock Exchange No. 1 - Business Processing with reference to the GRI Standards and in conjunction with the actual
situation of Topband. The disclosures of indicators in the Report are detailed in "Index".Language of the Report
The Report is prepared in Chinese and translated into English. Should there be any discrepancies or misunderstandings between
the two versions the Chinese version shall prevail. The electronic version of the Report can be downloaded and browsed from the
official website of Topband.Topband's official website: http://www.topband-e.com/
Contact information
Department: Securities Department of Topband
Address: Topband Industrial Park Keji Second Road Shiyan Sub-district Bao'an District Shenzhen
Tel.: 0755-26957035
Fax: 0755-26957440
Email: wenzh@topband.com.cn
1目录
CATALOGUE
About the Report .....................................1
Chairman's Statement .................................3
ABOUT TOPBAND ........................................5
ESG MANAGRMENT ......................................11
ESG governance ......................................12
Assessment of substantive issues ....................13
Stakeholder communication ...........................14
ENVIRONMENT .........................................15
Accelerate the Development for a Low-Carbon Future...16
Advancing climate actions .......................... 16
Seizing climate opportunities ...................... 19
Greenhouse gas management .......................... 24
Deepen Green Production .............................26
Fulfilling environmental responsibilities .......... 26
Low-carbon production paths ........................ 32
Resource recycling ................................. 35
SOCIAL ..............................................36
Guarantee Customer Benefits .........................37
Stimulate Organizational Vitality ...................48
Participating in Social Activities for Public Good...58
GOVERNANCE ..........................................60
Strengthening Corporate Governance ..................61
Governance structure ............................... 61
Shareholder's equity ............................... 64
Business Risk Control ...............................66
Compliant operation ................................ 66
Integrity and anti-corruption ...................... 67
Information security protection .................... 68
Key Performance Indicators (KPIs) ...................71
Index ...............................................75
2Topband ESG & Social Responsibility Report 2023
Chairman's Statement
Wu Yongqiang
Chairman of Shenzhen Topband Co. Ltd.Dear shareholders partners and all friends concerning about Topband
Thank you for your continuous attention and firm support to Topband. In 2023 we were faced with multiple challenges such as
demand and industry inventory but we remained confident in the future development prospects of the industry increased R&D
investment in key new areas and accelerated our implementation of overseas businesses laying a solid foundation for growth in the
future while realizing sound and healthy operations.In 2023 we realized operating income of RMB 8.992 billion up 1.32% YoY and net profit of RMB 512 million up 5.76% YoY.Our product competitiveness and internal efficiency were improved with a 2.17% YoY increase in gross profit margin. In addition we
made three key advances:
I. Reduced costs and increased efficiency with the operational efficiency and significantly improved. We clearly set out our
strategy to reduce costs and increase efficiency in 2023. All departments worked together and effectively controlled the costs of raw
materials and various expenses significantly reducing the total costs. Meanwhile the inventory dropped significantly and the
inventory turnover was improved significantly improving our health indicators and operational efficiency.II. Technological innovation for high-value growth. In 2023 with our existing technology and product platforms we
strengthened our machine and system solution capabilities and increased the value volume of our products. We also accurately
identified market demands and enhanced the value chain by self-defined products. In 2023 we increased R&D investment and
business integration in the new energy business segment and launched many new products that are autonomous and controllable
represented by DC charging piles and all-in-one industrial and commercial storage products. This will drive our future growth and
become our third growth curve.III. International layout with highlighted overseas strengths. After years of international strategy implementation and
promotion the Vietnam and India bases have achieved large-scale mass production and stable operation with excellent profitability.The Romanian and Mexican bases have realized mass production marking our significant breakthroughs in overseas markets.
3Chairman's Statement
We always believe that the long-term trend of "intelligence low-carbonization and internationalization" will remain unchanged.We will usher in significant development opportunities against the emergence of intelligent products the transformation of the old and
new economic systems and the increase in international market demand. In 2024 we will focus on the following three strategic
priorities.I. Accelerate the business expansion in overseas markets. More than half of our business comes from overseas markets. Based
on the success of "manufacturing exports" we will accelerate "market expansion overseas". In 2024 we will ask the marketing team to
actively expand the market overseas. We shall not only seize the opportunity of order transfer but also develop the demand in the local
market to build Topband into a truly international firm.II. Accelerate the development of new energy business. As our growth driver new energy business greatly relies on our
technological advantages in batteries power sources electronic control and motors focuses on energy storage and charging and
provides self-defined products and customized solutions. We will further concentrate our resources to create a product matrix and build
a unified market platform for rapid development.III. Accelerate the creation of competitive intelligent products and their application in emerging industries. With the rapid
development of AI and humanoid robotics the intelligent industry has ushered in unprecedented development opportunities. As an
enterprise with more than 20 years of technology accumulation Topband has built up strong capabilities in product innovation and
implementation. In 2024 we will be committed to deepening our insight into the market demand and defining and creating more
autonomous and controllable core products; at the same time we will further explore new industrial opportunities especially in
robotics and AI applications. We will accelerate the development of core technologies such as mobile robots servo drives and control
technologies to create industry-leading competitive products and actively develop top customers in industries.Finally I would like to express my thanks to all shareholders and partners for their trust and support. We will continue to offer
customers with excellent products and services and to contribute to build a more "intelligent and low-carbon" world. I believe our
joint efforts will help Topband realize growth in 2024 again.March 27 2024
4Topband ESG & Social Responsibility Report 2023
关于拓邦股份
ABOUT TOPBAND
5About Topband
Shenzhen Topband Co. Ltd. (hereinafter referred to as "the Company" or "Topband") is a business with rich technical experience
and product solutions in the intelligent control industry. With the integrated technology system of "four electrics and one network"
(electronic control motor battery power source and IoT platform) the Company is specialized in providing intelligent control
solutions for industries including downstream tools home appliances new energy and industry. As the first listed company in the
field of intelligent control in China the Company is committed to "providing value for customers and benefiting everyone by using
intelligent control technologies". Our technology platforms are stable and reliable; we respond to R&D requirements quickly and
provide high-quality products that are safe and economic; we dare to breakthroughs and innovation in R&D management and other
areas and obtain wide recognition of downstream customers.Established in 1996 and listed on the Shenzhen Stock Exchange in 2007 Topband is a state-recognized enterprise technology
center a national high-tech enterprise a pilot demonstration enterprise in Shenzhen an AEO a winner of the Shenzhen Industrial
Award and a winner of the China Manufacturing Champion for its smart home control module. In 2023 the Company ranked 65th in
the 2023 Top 500 Manufacturing Enterprises in Guangdong. Since its listing the Company has realized solid financial performance
with sales revenue of RMB 8.992 billion and a total of 9323 employees in 2023.Sweden
Home UK Subsidiaries/Offices in China
Tools GermanyN ew energy Industry
appliances Timisoara Romania
36.05% USA 2.80%
35.21% 23.80% Japan
Israel
Chongqing
Huizhou
Shenzhen
Monterrey Pune India
Mexico Thailand
Dong Nai Vietnam
Singapore
South Africa
Headquarters (Shenzhen) Production Base/R&D Center Subsidiaries/Offices
6Topband ESG & Social Responsibility Report 2023
Topband Development Course
2023
Realized a revenue of
2016 RMB 9 billion
Focused on energy storage and new energy
vehicle parts in the new energy industry
Acquired Shenzhen YAKO Automation
Technology Co. Ltd. in 2016
Entered the industrial control industry
2019
Included in the supplier system of a head tool
Realized a revenue of
Started the localization of home appliance control brand in 2010 over RMB 4.1 billion
in China in 1996 Entered the tool industry
Entered the home appliance control industry
2007
Listed on the Shenzhen Stock
Exchange 2013
(Stock code: 002139.SZ) Realized a revenue of over
China's first listed company in the RMB 1 billion
intelligent control industry
1996
Established
1996
Made breakthroughs in electronic 2016
control technologies 2010 Developed IoT
Developed power source platforms
2009
technologies
2007 Developed battery
Developed motor technologies
technologies
7About Topband
Technologies Platforms
Electric Control With hundreds of electronic control technology platforms the Company have deep
accumulated much experience and technologies in key areas such as automatic control
human-machine interaction embedded computing machine vision robotics intelligent
sensors and motion control. The technologies can fulfill the needs of products in the
industries of home appliances tools new energy and industry and are widely used in
controllers electromechanical integration power supplies and smart batteries.Motor Technology The Company makes continuous innovation around high efficiency low noise high
precision and high stability of motors and has built complete technical capabilities from
motor design and simulation testing and verification to large-scale manufacturing with
dozens of advanced motor product platforms formed including Brushless DC (BLD-C)
motors coreless motors stepper motors and servo motors.The motor technologies have been successfully applied to power tools automation
equipment intelligent electrical appliances new energy vehicles robots and other fields.Among them the Company's motor technologies in power tools and motion control are in the
leading position in the industry widely recognized by the market.Battery Technology The Company has built complete design development customization and production
technology capabilities around the Cell Cloud Platform BMS PCS and EMS (1C1C3S)
system. In terms of battery management system (BMS) we have achieved industry-leading
accuracy and reliability. With advanced algorithms and control strategies our BMS can
monitor and manage the battery status in real time ensuring optimal performance and safe
operation of the battery system. Technological innovations in this area have made us a market
leader when providing efficient and safe battery solutions for energy storage systems power
backup power exchange and portable devices.Power Technology The Company has various analog power supply switching power supply and digital
power supply technology platforms with different power levels and types. It can provide
charging inverter and various customized power supply solutions.IoT Platform As the key to connecting the perception network and application layers the IoT platform
enables us to intelligently connect devices and efficiently manage data. With complete
technical capabilities from modules and smart terminals to applications (app) and Platform as
a Service (PaaS) we can provide integrated solutions for multiple industries. In particular the
Company has made remarkable achievements in developing household energy management
cloud platforms and the PV energy storage and charging cloud platforms. These platforms
intelligently analyze and process the energy usage data to help users optimize energy
consumption provide convenient energy management and usage experience and achieve
energy saving and efficient use.
8Topband ESG & Social Responsibility Report 2023
Key operation results
Net cash flow from
Operating income
operating activities
RMB 8.99 billion
RMB 1.47 billion
Gross profit rate Net profit belonging Net profit excluding EPS (basic)
22.31% to parent company extraordinary profit RMB 0.41
RMB 516 million and loss
RMB 512 million
R&D investment Proportion of R&D R&D personnel Total tax payment
(including tax
RMB 834 million input 2004
payment at home and
9.28% abroad)
RMB 286 million
Net assets Total assets Estimated dividend Buyback amount
RMB 6.4 billion RMB 11.2 billion amount RMB 59.97 million
RMB 73.77 million
In 2023
the Company provided nearly 1.45 billion sets of intelligent control products to downstream enterprises
and customers
The Company delivered about 4.5 million In the field of tools the Company shipped The Company shipped 1485000 sets of
sets of inverter refrigerator and air conditioner 29.47 million sets of intelligent control products charging pile components and complete
control solutions. The inverter control solutions and complete machines 13.19 million sets of machines and 1677300 sets of new
helped greatly reduce the noise of the devices and
BMS products and 1.5 million sets of motor energy-based industrial and commercial energy
enabled the downstream products to improve the
products. storage BMS.performance of energy saving and environmental
protection by 30% as a whole.
9About Topband
Market recognition?
Date of
Subject Description Granting organization
Recognition
May 17 2023 Topband Top 100 IoT Enterprises in China Internet of Things Industry Association
Topband Best Energy Storage Battery Supplier in China's 13th China International Energy Storage
May 24 2023
Battery Energy Storage Industry in 2023 Conference (CIES)
Consumer Technology & Innovation Show (CTIS)
May 30 2023 Topband Made in China Invisible Champion
by Global Sources
China Intellectual Property Administration
July 1 2023 Topband The 24th China Patent Award (CNIPA) and World Intellectual Property
Organization
Institute of Industrial Economics of Jinan
November 21 No. 65 in Top 500 Manufacturing Enterprises University Guangdong Manufacturers
Topband
2023 in Guangdong for 2023 Association Guangdong Development and
Reform Institute
Quality recognition?
Date of
Subject Description Granting organization
Recognition
November 30
Topband TTI Supplier Excellence Awards Techtronic Industries Co. Ltd.
2023
Sustainable development-related recognition?
Date of
Subject Description Granting organization
Recognition
Shenzhen Water-Conservation Ecology Environment Bureau of Shenzhen
February 28 2023 Topband
Enterprise Municipality
November 17
Topband EcoVadis Bronze Medal ecoVadis
2023
Capital market recognition?
Date of
Subject Award Granting organization
Recognition
China Chengxin Green Finance Technology (Beijing)
November 1 2023 Topband CCXGF ESG Rating: A+
Ltd.Most Socially Responsible Listed
November 8 2023 Topband Stock Star
Company
2023 Annual Award for the
January 4 2024 Topband "Investor Relations Elite" released RoyalFlush
by RoyalFlush
10Topband ESG & Social Responsibility Report 2023
责任管理
ESG MANAGRMENT
11Responsibility Management
ESG governance
Topband continuously strengthens the in-depth integration of sustainable development and business operations and has achieved
steady growth in both financial operations and ESG. Under the guidance of the five strategies (Scale Growth Customer Intimacy
Innovation-Driven Agile Operation and Organizational Evolution) the Company has formulated corresponding management
indicator systems and continuously optimized them and continuously tracked and assessed its sustainable development capabilities in
all aspects to promote the establishment of a sustainable development model.As a business that takes "making the world more intelligent and low-carbon" as its long-term social value positioning Topband
focuses on raising employees' awareness and ability in ESG and actively guides all business branches and functional departments to
promote relevant special work based on the division of responsibility.Topband regards information disclosure as one of the important ways to promote management improvement. In particular an
information disclosure system and an effective communication platform have been built to regularly release reports the responsibility
fulfillment news are released via Topband's WeChat Official Account. With reference to international standards such as GRI and
TCFD as well as other Chinese regulations such as Self-regulatory Guidelines for the Companies Listed on the Shenzhen Stock
Exchange No. 1 - Standardized Operation of the Companies Listed on the Main Board the Company began to release a Social
Responsibility Report together with the Annual Report from 2020 and an ESG & Social Responsibility Report from 2021. All reports
were published after consideration at the Annual Board Meeting. The Company's major activities and progresses in ESG areas are
considered at the Annual Board Meeting. The Board of Directors is informed of the latest institutional or policy risks and opportunities
related to the major ESG areas and actively supports the fulfillment of the Company's governance plans and information disclosure
procedures in various ESG areas to achieve the sustainable development of the Company and the value creation in the long term. In
addition the Company continuously improves ESG issues and indicators through preparation benchmarking and evaluation steps
enhancing its management and its ability to fulfill its responsibilities.For a long time Topband with adherence to the core values
of "helping our customers make achievement and realize common
development" and the concept of "equality health fairness and
justice" actively embraced partners with common values for the
purpose of mutual benefit and common growth. Thanks to its Topband
long-term efforts in ESG and building a sustainable development Annual Most Socially
ecosystem with partners Topband has been recognized by the Responsible Listed Company
industry in terms of sustainable development performance. In the
future Topband will continue to improve the ESG system
actively fulfill its social responsibility continuously explore
innovative development modes and promote scientific and
technological innovation and green transformation contributing
to the technological and industrial development of the global
intelligent control industry and the sustainable development of
the society.Annual Most Socially Responsible
Listed Company Award from Stock Star
12Topband ESG & Social Responsibility Report 2023
Assessment of substantive issues
Taking into account its business characteristics and operations Topband conducted an in-depth analysis of macro trends
reporting criteria and intra-industry focuses and initially identified key stakeholders and an issue library consisting of 20 substantive
issues. On the basis of identifying and distinguishing the significance of different issues the Company discloses information in a
targeted manner effectively responds to the concerns of stakeholders and promotes better ESG management and ESG management
system.After summary analysis and internal review of the Company's management we have drawn an importance matrix of ESG
substantive issues to present the importance of each issue from two dimensions: "the importance of economic environmental and
social impacts" and "the impact on stakeholder assessment and decision-making". We have determined the disclosure focus of the
Report and the plan of future management work.Environment Society Governance
Greenhouse gas management Employment of employees and their Corporate governance
rights and interests
Combat with climate change Protection of shareholders' rights
Occupational safety and health and interests
Environmental management and
opportunities Employee development and diversity
Compliant operation
Water resource management Employee care and communication Risk management
Information security and privacy
Pollutant management Product R&D and Innovation
protection
Waste management High-quality products services Business ethics
Responsible supply chain
Social welfare
High
Low
Low Importance of economic environmental and social impacts High
13
Impact on stakeholder assessment and decision-makingResponsibility Management
Stakeholder communication
The Company has established a diversified communication mechanism so that the different demands of stakeholders in the ESG
field can be carefully understood through various channels and be actively responded to with the purpose of maintaining
communication and forming a stable good and sustainable mutual trust relationship with key stakeholders. Our communication
channels include but not limited to the General Meeting of Shareholders at regular intervals questionnaire surveys regular face-to-face
communication with stakeholders like our customers and participation in various ESG or industrial forums. In the future we will
continue to improve communication mechanisms maintain close contact with key stakeholders and jointly promote the continuous
improvement of ESG governance work.Stakeholders Expectations and demands Response and communication
Government and regulators * Greenhouse gas management * Response to national policies
* Combat with climate change * Law-abiding and compliant operation
* Environmental management and * Practicing green development
opportunities
* Water resource management
* Pollutant management
* Waste management
* Corporate governance
* Compliant operation
* Information security and privacy
protection
* Business ethics
Shareholders and other * Corporate governance * Enhance information disclosure and response (General
investors * Protection of shareholders' rights and Meeting of Shareholders investor exchange meeting
interests performance briefing investor hotline SZSE Cloud
* Compliant operation Platform and Topband Investor Relations Applet)
* Risk management * Strengthening Corporate Governance
* Maintain shareholder rights and interests
* Law-abiding and compliant operation
Customers * Product R&D and Innovation * Provide high-quality products and services
* High-quality products services * Strengthen customer privacy security and protection
* Information security and privacy * Adhere to business ethics
protection
* Business ethics
Suppliers and other partners * High-quality products services * Strengthen supply chain management
* Responsible supply chain * Conduct supplier training
* Business ethics * Adhere to business ethics
Employees * Employment of employees and their * Protect employee rights and interests
rights and interests * Ensure occupational safety and health of employees
* Occupational safety and health * Promote employee development
* Employee development and diversity * Strengthen employee communication
* Employee care and communication * (Congress of Workers and Staff Journal of Yanxingzhe
Colleague Bar Employee Experience Platform)
Community * Social welfare * Carry out voluntary service activities
* Conduct charity donations
14Topband ESG & Social Responsibility Report 2023
环境
ENVIRONMENT
With the value of "making the world more intelligent and
low-carbon" Topband continues to explore the path of properly
combining environmental benefits with economic and social
benefits and practices the principle of "prevention first and
integrating prevention with control". It has established an
environmental management system in accordance with
ISO14001.Topband is committed to realizing the synchronous
planning implementation and development of production
construction and environmental protection and utilizes the
Affordable and Industry Sustainable Responsible Climate
clean energy innovation and cities and consumption actions electronic control motor battery power source and IoT platform
infrastructure communities and production
technologies to create an intelligent and low-carbon sustainable
development ecosystem.
15Environment
Accelerate the Development for a Low-Carbon Future
Advancing climate actions
Regarding "low-carbon" as a key element in the 2030 vision blueprint Topband adhered to the concept of sustainable
development relied on intelligent and low-carbon development actively fulfilled the requirements of green and low-carbon
development policy and promoted the environmental management in a scientific and systematic way. With its technical advantages in
intelligent control Topband explored the low-carbon way of manufacturing industry and worked with upstream and downstream
partners to carry out technological and product innovation aiming at building a more environmentally friendly coordination model and
jointly promoting the realization of the "dual carbon" goals.An energy management team was formed in March 2023 to lead the energy saving work from office production procurement
delivery and other aspects and explore the practices of using renewable energy and energy-saving equipment to improve energy
efficiency. Meanwhile a pilot online energy management platform was established in Huizhou Park which regularly assesses the
energy usage and ensures the authenticity and accuracy of the monitoring data.Energy transition The Company has built a green park for "PV power generation + energy storage". Specifically on
the basis of the original 513 kW PV power generation system Shenzhen Huizhou Ningbo and Ninghui
Parks increased PV installed capacity of 240 kW 941.28 kW 1479.08 kW and 1490 kW
respectively in 2023 with a total increase of 4150.36 kW and an increase rate of 709.04%.Meanwhile the Shenzhen Park was equipped with 1000 kWh lithium storage cabinets for peak and
valley regulation in the park. In 2023 the PV power generation facilities in Shenzhen and Huizhou
Parks generated energy of 2239 MWh and the energy storage systems in Shenzhen Park generated
benefits of RMB 39600.Energy conservation Temperature regulation in summer in the parks is a major source of energy consumption for
Topband. The Company installed 1600 m3 chilled water storage tanks in the Shenzhen Park which
transformation
store cold during the nighttime when the electricity rate is low and provide the cold source during
daytime when the electricity rate peaks. The Company replaces the old equipment in the central
air-conditioner room with energy-efficient cooling water towers magnetic levitation units and
intelligent frequency variable control equipment to realize intelligent control over circulating water
pump and air handler and accurately distribute cooling capacity and adjust water flow therefore
improving the energy efficiency ratio of air conditioning. The air-conditioning upgrade project under
construction in Huizhou Park is expected to save about 260 MWh of electric energy per year and thus
create a differential income of RMB 516400.Waste heat recovery By installing a heat recovery machine in the compressed air system and replacing the packing of
the cooling tower the Company improves the heat exchange efficiency and makes full use of the waste
heat generated by the air compressor to provide hot water resources for staff dormitories saving 1.5
million kWh of electricity each year.
16Topband ESG & Social Responsibility Report 2023
Green culture Employees are trained on environmental protection knowledge and the eight wastes every year to
strengthen the concept of green office and raise their awareness of energy saving. In 2023 the
construction
Company set up a joint inspection team to carry out the "21-Day Cost Saving Adoption Program".Specifically the team checked the office cleanliness and savings weekly and corrected unreasonable
use of water electricity paper and other resources in the office.Promote green office and reduce resource waste. Paperless office was promoted as follows: Paper
process exception forms and equipment maintenance records were replaced with electronic ones; hand
towels at hand washing stations were removed and handkerchiefs were distributed to employees; and a
stationery sharing desk was set up to enable the cross-department circulation and recycling of office
supplies and production consumables that are still in their lifecycle as evaluated.Optimize energy management to reduce energy consumption. In terms of air conditioning and
lighting the lighting in passages was replaced with LED energy-saving lamps controlled by human
body-based light-sensitive switches; a system for the use of centralized and independent air
conditioners was developed with clear responsibilities and rules for switching on and off the air
conditioners to reduce the waste. In 2023 the manufacturing and administrative departments carried out
energy saving and consumption reduction program and 7S/5S office campaign improving the energy
use by 15% and 20% respectively.Improve water usage in the office. Water saver faucets and sensor faucets were added; 125 barrel
water dispensers were replaced with water purifiers in the Shenzhen Park; bottled water was replaced
with tea for receiving guests to reduce water waste while effectively reducing the plastic waste from
bottled water.New energy vehicles replaced fuel vehicles as routine transportation vehicles and commuter buses
and charging piles for new energy vehicles were installed in the park to encourage employees to travel
in a green way.New energy commuter bus
17Environment
Cases
Our Actions for Zero Carbon Future Low-Carbon Exhibition
In November 2023 Topband Shenzhen Park carried In 2023 the Company increased market investment
out the "Our Actions for Zero Carbon Future" campaign for opportunity acquisition and participated in 43
to encourage employees to practice a green lifestyle. domestic and international exhibitions aiming to directly
During the campaign participating employees signed a convey our product design concepts to customers and
commitment to 21-day low-carbon action logging on a acquire new customers in the exhibition.social media platform. The Company set up rewards to
encourage employees to develop low-carbon habits. Our booth was designed based on a "low-carbon and
Finally 21 employees complete the logging task and minimalist" style for building a modular booth and
received the rewards. standard exhibits were provided and combined as needed
in multiple exhibitions. In particular the modular booth
used in the Shenzhen CIBF exhibition was transported
back to the exhibition hall of Topband Shenzhen Park for
reuse later with a reuse rate up to 70% reducing the
consumption of the booth resources and practically
practicing the low-carbon concept.Our Actions for Zero Carbon Future
Develop your low-carbon behavior and good habits
Low-carbon travel｜Clean your plate｜Old
article recycling｜Energy saving
Develop your low-carbon behavior and good habits in 21 days
To build a "zero carbon" industrial park the President Office is inviting employees in Shenzhen Park to
participate in the low-carbon campaign and become a "low-carbon" partner. We hope that this can
inspire everyone to actively practice the environmental protection and contribute to the construction of a
beautiful home. The campaign details are as follows:
Campaign details
1. Green travel and low-carbon life 2. Take the stairs together and practice low-carbon habits
3. Clean your plate every day together
5. Low-carbon office and low-carbon holiday 4. Recycle old articles for renewed life
7. Use fewer disposable items 5. Low-carbon packaging doing our part
How to join
1. During the campaign complete at least three of the above low-carbon activities and twitter the related photos and text for low-carbon
action logging.
2. Log content: [Topband always adheres to the value of technology and making the world more intelligent and low-carbon. We take the
slogan of "Our Actions for Zero Carbon Future" and this is day xx of my action. As a low-carbon practitioner of Topband I start from
every detail around me and actively practice environmental protection to contribute to the construction of a beautiful home.]+Three photos
(no repetition) of low-carbon activities on that day need to be attached.
3. To encourage more colleagues to participate in the campaign the twitter content shall be visible to all.
Rewards
At the end of the campaign those who have completed the task as required can participate in sharing the
bonus of RMB 2023.Period
When: December 1 2023 to December 21 2023
For whom: Colleagues in Shenzhen Park only.Scan the QR code to learn more
Organizer: President Office - Shenzhen
Administration Department
Poster of "Our Actions for Zero Carbon
Future"
18Topband ESG & Social Responsibility Report 2023
Seizing climate opportunities
In recent years the active actions are taken at home and abroad to deal with the looming climate crisis. The technology-driven
greenhouse gas emission reduction and energy transition are regarded as one of the important paths to achieve carbon neutrality.Globally new energy application scenarios and demand continue to be unleashed bringing development opportunities for the
Company. To identify climate opportunities in a timely and effective manner Topband regularly conducts internal sharing.Specifically strategic departments and relevant organizations share industry trends and standard updates related to climate change and
integrate low-carbon and smart concepts into product development and design. At the same time as an industrial leader and a member
of the Shenzhen Energy Storage Standardization Committee Topband is actively involved in the development of new energy
storage-related standards contributing to the high-quality development of the industry.With advantages as an intelligent control enterprise the Company works together with downstream customers in the field of
home appliances and tools to build a sustainable industrial chain covering raw material selection design production and other links for
low-carbon and intelligent products. In the field of new energy we cooperate closely with China Tower and other leading enterprises
for a steady increase in the business scale; we also supply high quality and high performance products with a long lifecycle to markets
such as lightweight power batteries industrial vehicle batteries and robotic batteries establishing a good reputation in the industry. In
the future Topband is expected to develop cost-effective products build new business growth drivers and achieve business
development and environmental protection side by side by relying on close cooperation with leading customers in home appliances
tools new energy industrial control and other areas.Cases
Topband's new energy business: Grasp the "dual-carbon" opportunities
* Since it entered the new energy field in 2010 Topband has focused on "energy storage" and "new energy vehicle" and
accumulated core technologies consisting of Cell + Cloud Platform + BMS + PCS + EMS. It has provided diversified product
solutions including household energy storage industrial and commercial energy storage portable energy storage and charging and
control of new energy vehicles and conducted product upgrade and technology development as scheduled to support the green
transformation of customers by marketization of advanced technologies.* With great efforts in R&D of the cell technology Topband has developed multiple material systems including lithium and sodium
batteries as well as a battery product matrix including cylindrical square soft pack and other product forms to accommodate
different applications. It focuses on the "energy storage + light power" fields to provide customers with one-stop new energy
battery solutions.* In 2023 the Company made great progress in R&D of
sodium-ion batteries with breakthroughs in the high-rate
charging and discharging and high-temperature cycling. The
new large cylindrical sodium cell can realize 2C charging and
3C fast discharging with a high-temperature cycle life of
over 1000 cycles. It is a favorable complementary product to
Lithium-ion battery
lithium batteries and can help the upstream and downstream
customers in the industry reduce their dependence on lithium.
19Environment
* In terms of improving the capacity of lithium batteries Topband has carried out forward-looking technological development in
intelligent lithium replenishment. Specifically it has verified the feasibility of intelligent lithium replenishment on the system side
and proved that the prolonged life of the battery system can be realized by improving the capacity consistency of the cell; on the
material side it has further studied the lithium replenishment process during the manufacturing of the cell and attempted to
simplify the lithium replenishment agent process and the requirements of the operating environment.* In 2023 Topband has made breakthroughs in PV energy storage and charging. With the module pressurization design adopted the
new technology improves and increases the cycle life of the PACK by fixing the morphology of the cell with the passive
equalization current increased to 300 mA which ensures the consistency of the cell for a long time and dramatically raises the
cycle life of the module to over 12000 cycles. The new system as a whole is designed with IP55 protection with built-in forced air
cooling for internal circulation and a temperature control system for independent thermal management. Its air duct design and
thermal management algorithms can control the overall temperature difference of the system within 3°C.The technology supports
integrating battery PACK BMS PCS thermal management system fire protection system PV module and off-grid switchover
module in a single cabinet. It can be applied in multiple scenarios such as PV and energy storage PV energy storage and charging
and energy storage system and it can be integrated with a cloud platform for remote monitoring troubleshooting and upgrade.M100G215A Industrial and Commercial Energy Storage and Charging
System with 150 Ah Cell and 300 mA High Current Equalization Control
* The Company persistently iterates the existing BMS products and apply them to backup power systems power systems of electric
bicycles and energy storage systems.* With hardware software and process upgrade Topband's inverter products are at the excellent level in terms of efficiency power
quality grid adaptability dynamic response control precision EMC environmental adaptability and other performance. Topband
has built a product matrix covering both grid-connection and off-grid scenarios and with a complete range of power models which
can accommodate most scenarios in different countries and regions.
20Topband ESG & Social Responsibility Report 2023
PV energy storage and charging solution
* Charging infrastructure is the key to boosting the new energy vehicle industry. With the increasing demand for new energy
the traditional charging infrastructure is facing the power supply pressure. In addition along with the new energy changes
PV energy storage and charging products are increasingly used in more and more scenarios. To comply with this trend
Topband has developed the "PV energy storage and charging" solution which has become the representative of the
Company's intelligent green and low-carbon product solutions.* Overall this PV energy storage and charging solution has obvious strengths in category iteration performance after-sales
service cost responsiveness and other aspects. In the project "PV Energy Storage and Charging Solution for Huizhou -
Daya Bay Expressway Yuanshan Service Area" the R&D team of the Company conducted the project survey assessment
solution design and operation implementation in just 3 months successfully changing the Company from a
"charging/energy storage facility provider" to a "PV energy storage and charging solution provider".Controller and Components Complete Machine
Evolution of PV-ESS-Charging Technology
* After years of technical accumulation in EV charging modules and AC/DC charging equipment the Company has had
strong understanding of products components and the whole unit involved in PV energy storage and charging. On the
basis of the 1C1C3S capabilities the Company can provide a customized renewable energy solution allowing quick energy
generation use and storage based on the application location terrain electricity requirements and other factors. This
solution allows integrating EMS with PV energy storage and charging pile and interconnection of the source network load
and storage system interaction to build a micro power station application mode. This can maximize the project's benefits
and costs while ensuring good charging experience.Remote monitoring Remote monitoring
Cloud platform EMS Operation platform
Mobile APP Mobile APP
380V AC busbar
PV module PV inverter
480 kW unit Other loads (cameras
street lights...)
Energy storage
Public supply system Transformer system
Supercharger Fast Fast Fast
charger charger charger
PV-ESS-Charging Integrated System
21Environment
* In 2023 the energy storage cabinets charging piles charging modules inverters and other core products involved in the
PV energy storage and charging solution were shipped one after another. The Company focused on the ToG and ToB
business models and implemented the full solutions in multiple high-rate charging scenarios including Huizhou Municipal
Government Huizhou Communications Investment Group and Huizhou Convention & Exhibition Center. These can be
quickly replicated and applied in other locations. The Company has built a 160 KW self-operated power station in Wuhan
to explore the profit model of charging scenarios.Single-charger fast charging liquid-cooling supercharging and
double-charger fast charging
Highlights of the PV Energy Storage and Charging Solution
Flexible Reliable
Any combination of air-cooling/ liquid-cooling Grid-connection and off-grid switchover ensures
unit + liquid-cooling/air-cooling terminal can be used to that the PV and energy storage systems can still supply
accommodate multiple scenarios. power to important loads in the event of an unexpected
power outage.Safe Fast
During the charging the EMS and cloud platform The liquid-cooling supercharger can provide a
monitor the voltage current and heating points in real maximum charging power of 480 kW per charger and
time and the loss of the whole unit can be reduced products that can provide a charging power of 600 kW
through real-time power regulation. Charging safety is and 720 kW have been planned. The maximum
greatly enhanced through the active liquid-cooling and charging power of a fast charger can be up to 250 kW
thermal management system message prediction-based per charger. At the same time the best efficiency
active safety protection and intelligent fire protection tracking technology is adopted to ensure that the peak
system. charging efficiency is as high as 96% or more.
22Topband ESG & Social Responsibility Report 2023
Expansion of PV and Energy Storage Inverter Technology Platforms
* Under the accumulation of multiple technology platforms such as rectifiers/inverters grid-connection control module
series-parallel connection and electrical safety and protection the Company grasps the opportunity of low-carbon
development in household energy storage and industrial and commercial energy storage under the energy transition
economy and rapidly develops PV and energy inverter market insights as well as product platform and product testing
capabilities. The Company has conducted complete PV and energy storage product planning rapid development and
marketing around the application in households and industrial and commercial enterprises.* Most of Topband's PV and energy inverter products are designed for grid-connected household and industrial and
commercial applications with only a small number of products for off-grid scenarios where the power levels range from a
few kilowatts to hundreds of kilowatts. The inverters come in a wide range of specifications and can accommodate most of
the scenarios in different countries and regions in terms of electrical safety battery and grid adaptability and
environmental adaptability. Some of the products have received TUV certification and been marketed. With optimized
hardware software structure and processes the inverter products developed by the Company have relative advantages in
some performance indicators such as efficiency power quality grid adaptability dynamic response control precision
EMC and environmental adaptability. From solution design product transformation to delivery the universal technology
platforms agile response services and customized product strategies have won the Company orders from system
integrators unit manufacturers and other types of customers.Household Three-Phase Hybrid Inverter Household Single-Phase Hybrid Inverter
Industrial and Commercial PV Industrial and Commercial Energy Storage
Grid-Connection Inverter Inverter
23Environment
Actively Practice Carbon Finance Innovation
* The Company pays attention to the correlation between climate issues and the carbon market and strictly abides by the carbon
emission regulations. Over the years the Company has realized carbon emission quota surplus for consecutive years under the
government's carbon quota regulations. In June 2023 the Company was invited to participate in the "Green Development and
Carbon Search for the Future" the 10th anniversary of the opening of the Shenzhen carbon market which was guided by Shenzhen
Ecology and Environment Bureau and Shenzhen Exchange Group and organized by China Emissions Exchange a subsidiary of
Shenzhen Exchange Group. Under the joint witness of the Department of Climate Change of the Ministry of Ecology and
Environment the Shenzhen Municipal People's Government and municipal authorities the Company and CITIC Securities signed
the first combined carbon asset repurchase transaction in China during the event. This is a national carbon financial innovation
realized under the guidance of the relevant authorities the first repurchase transaction in the Shenzhen carbon market carried out
by a financial institution as the main body with a controlled enterprise and also the first combined repurchase transaction based on
carbon emission quotas and the certified voluntary emission reductions. This signing enhanced the Company's knowledge of the
asset value and trading attributes of carbon emission quotas and certified voluntary emission reductions. It is a new attempt in the
real economy to find low-carbon development paths through the carbon emission trading market.Greenhouse gas management
The Company is concerned about the impact of greenhouse gas changes. To cope with the various changes to the environment
and society the Company has formulated a series of countermeasures and actively practiced carbon disclosure. In 2023 Topband was
rated B- in the CDP rating.The Company has developed energy consumption management policies such as the General Provisions for Management of
Environmental Protection Energy Conservation and Emission Reduction and the Inspection System for Environmental Protection
Energy Conservation and Emission Reduction based on the Guidance for Quantification and Reporting of the Organization's
Greenhouse Gas Emissions (SZDB/Z 69-2018) (standardization guidelines of Shenzhen) the Guidance for Verification of the
Organization's Greenhouse Gas Emissions (SZDB/Z 70-2018) (standardization guidelines of Shenzhen) the Technical Points for
Carbon Emission Verification of Carbon Trading Controlled Organizations in Shenzhen and the laws regulations and norms
applicable to the places where the Company's production bases reside aiming at implementing measures for greenhouse gas emission
reduction.The Company annually employs a qualified third-party agency to verify the greenhouse gas emissions in Scope 1 and Scope 2
within the organizational boundary and reporting boundary. The greenhouse gases involved in the verification are carbon dioxide and
methane. In 2023 on the basis of the greenhouse gas verification of Shenzhen Topband and as per the Greenhouse Gases - Part 1:
Specification with Guidance at the Organization Level for Quantification and Reporting of Greenhouse Gas Emissions and Removals
(ISO14064-1:2018) the Company expanded its greenhouse gas verification boundary verified the carbon emissions in the Shenzhen
Topband and Huizhou Topband bases and issued the Verification Report on Greenhouse Gas Emissions. Meanwhile as per the
Greenhouse gases - Carbon Footprint of Products - Requirements and Guidelines for Quantification (ISO14067) and the Specification
for the Assessment of the Life Cycle Greenhouse Gas Emissions of Goods and Services (PAS 2050) the Company completed the
product carbon footprint certification for lithium iron phosphate battery packs.The Company has set "energy saving and carbon reduction intensity" as its annual management goal. With more product
categories changed product structures and increase in revenue the Shenzhen and Huizhou Plants consumed a total of 46142.97 tons
of carbon dioxide in 2022.In particular the Shenzhen plant as a pilot plant emits 12064.00 tons of carbon a 2.36% reduction
compared with the previous year.
24Topband ESG & Social Responsibility Report 2023
Greenhouse Gas Emissions of Topband▼
Indicator (Organization) 2021 2022 2023
Total emissions (tCO? e) - Shenzhen Plant 12355.16 12064.00 13690.03
Total emissions (tCO? e) - Huizhou Plant / 34078.97 /
Total 12355.16 46142.97 13690.03
Scope 1: Direct emissions (tCO? e) 120.93 286.88 123.03
Scope 2: Indirect emissions (tCO? e) 12234.23 45856.09 13567.00
Compared with the emissions data presented for 2021 the data of the Huizhou Plant was added from 2022 onwards.The greenhouse gas emission data of the Shenzhen Plant in 2023 are preliminary data and the final data shall be subject to approval
by the Shenzhen Municipal Bureau of Ecology and Environment.As of the date of the Report the 2023 Huizhou greenhouse gas emissions data is not yet available.Composition of emission activities of Topband▼
Emission source Facility/Activity Emissions (tCO2e)
Natural gas Cooking stove
Scope 1 286.88
Methane Waste water treatment for septic tanks
Scope 2 Outsourced electricity All electrical facilities 45856.09
Explanation of the quantitative method for greenhouse gas▼
Category Subcategory Emission source Quantitative methods and formulas
Emission factor method:
Stationary CO2 emissions from natural gas = Low-level heating value *
Canteen stoves
combustion Natural gas consumption*
(natural gas)
emissions Carbon content per unit calorific value * Carbon oxidation
Scope 1 rate
Direct emissions Emission factor method:
Fugitive methane emissions = Emission factor (maximum
In-plant septic tanks
Fugitive emissions methane production capacity 0.6 *
(methane)
Methane correction factor 0.5) * Total organic matter in
domestic wastewater * Methane GWP value
Emission factor method:
Scope 2 Outsourced Power/all electrical CO? emissions from outsourced electricity = net
Indirect emissions electricity facilities outsourced electricity * emission factor of electricity *
emissions
25Environment
Deepen Green Production
Fulfilling environmental responsibilities
Topband regards environmental compliance as the bottom line for fulfilling its environmental responsibility. With reference to the
Environmental Protection Law of the People's Republic of China the Law of the People's Republic of China on Prevention and
Control of Environmental Pollution by Solid Waste the Law of the People's Republic of China on the Prevention and Control of
Environmental Noise Pollution and other laws and regulations as well as other laws regulations and policy documents applicable to
the places of the global businesses Topband has formulated a detailed internal environmental management system to systematically
manage the environmental footprints in the three areas of waste pollutants and water resources. It also timely implements policies to
ensure the timeliness of relevant systems and measures. Topband also makes clear environmental indicators and action plans every
year based on actual situation and regulations and customer requirements with reference to policy guidance and industry practice and
summarizes the achievement of the relevant objectives at the end of the year.To better fulfill environmental responsibility Topband has established an effective hierarchical environmental management
system with the principal of the Company leading the environmental protection. The top management organizes the management
review of the environmental management system to identify the internal and external environment needs and the related parties' needs
and expectations and to evaluate the environment-related risks and opportunities and formulate measures to address them. The
Administration Department and the Manufacturing Center promote the Company's environmental performance from the construction
of the system production management emission monitoring and other aspects regularly carry out internal audit of the environmental
management system to ensure that the system certificates cover all the operating sites and that the Company's environmental
performance is measurable and controllable.Environmental Management Organization of
Topband
President
The first person in charge of environmental management
comprehensively assuming the responsibility for the
environmental protection work of the entire company
President Office
Administration
Manufacturing Center
Department
* Preside over the daily work of the Company's * Regularly monitor the Company's pollutant
environmental management emissions to ensure compliance with laws
* Prepare environmental protection management regulations and other requirements
system documents and implement relevant laws * Strengthen production process control and bring
and regulations and other policy documents the reduction in the environmental impact of the
* Establish and manage archives and ledgers production process into daily management
* Invite external agencies to monitor the Company's
environmental indicators Raise the employees'
awareness of environmental protection
IECQ Certificate of Conformity Hazardous Substance Process Environment Management System Certification
Management Certification (QC080000) (ISO14001)
26Topband ESG & Social Responsibility Report 2023
Topband's environmental management measures also cover the environmental impact of the value chain. The Company integrates
environmental performance into the supplier audit. Environmental protection specialist positions are arranged and material-based
environmental records are maintained. The incoming materials of suppliers are sampled every half year and tested in the central
laboratory for environmental compliance ensuring that the materials meet the environmental requirements. By signing the Agreement
on Environment and Occupational Health and Safety of Interested Parties with Interested Parties such as suppliers construction units
logistics companies and recycling companies the Company ensures that the environmental impact and resource utilization of suppliers
during the provision of products and services are managed and monitored thereby improving the environmental friendliness of the
supply chain and better implementing the requirements of the environmental management system.Topband's environmental management measures also support improving the environmental management performance in the
supply chain of customers. The Company's device engineering department collaborates with the supply chain and the environmental
protection specialists of each business department to investigate the use of harmful substances conflict minerals
(gold/tantalum/tin/tungsten/cobalt/mica) in various divisions and upload the relevant information to customer's environmental
protection system.Waste management
To better manage hazardous waste prevent hazardous waste from polluting the environment and protect human health the
Company and some subsidiaries have formulated the Waste Management System the Management System for Environmental
Protection and Hazardous Waste and other waste management systems as per the Law of the People's Republic of China on Prevention
and Control of Environmental Pollution by Solid Waste the National Catalogue of Hazardous Wastes and other laws and regulations
as well as other laws regulations and policy documents applicable to the places of the global businesses. The Company also provides
regular environmental training for employees in accordance with the hazardous waste management requirements and supervision
systems.Management of hazardous waste Investigation management and supervision of environmental safety
Topband also upgrades the production and hazards
process technologies to reduce waste generation
Topband has also formulated an emergency plan for hazardous waste and reported it to the
from the sources. In the production process
ecology and environment bureau for filling against potential accidents such as hazardous waste
Topband uses eco-friendly materials and reduces
leakage and scattering during the collection storage and utilization of hazardous waste within
the waste generated with activated carbon laser
the Company's factory area.welding no-washing casting welder and other
Topband implements the system of "supervision and handling under public supervision" for
ways.the major hidden dangers that are complex difficult to be handled in a short time and may cause
For the storage utilization and transportation
greater environmental hazard (for example more than a larger secondary environmental risk
of hazardous waste the Company has established a
caused by the toxic and harmful substances that go into atmosphere water soil and other
hazardous waste record management system and
environmental media). Such hidden dangers are supervised and handled by the Company's Work
arranged personnel to maintain the data on the
Safety Committee. The major accident hazards supervised and handled under public supervision
hazardous waste management platform fully
are announced and disclosed in public to specify the responsible person and the time limit of
understanding the types and quantities of
rectification and supervisory department and to formulate governance plan. The divisions
hazardous waste. During the collection storage
workshops and relevant personnel that didn't thoroughly investigate hidden dangers or report
utilization and transfer of hazardous waste the
hidden dangers in a timely manner or implement the responsibilities or rectify hidden dangers
Company sets up accurate obvious and
in place shall be earnestly investigated for their responsibilities. Any department or person that
eye-catching warning signs and signboards as
ineffectively rectifies hidden dangers or results in environmental accidents or serious
required and classifies hazardous waste in strict
consequences shall be investigated for their responsibilities strictly and severely.accordance with its characteristics to prevent any
For general hazards that can be immediately removed or can be eliminated within a short
hazard in these activities. The Company has also
period of time by adjusting the process and are not easy to cause the atmosphere water soil
set up a special warehouse for the transfer of
emergencies inspectors carry out monthly inspections report the results in a timely manner
hazardous waste which is managed and monitored
inform the Company the hazards at the next day of the inspection and require the business units
in real time by specialized personnel. The
concerned to complete the rectification as required.hazardous waste at the end of its life cycle is
In terms of environmental testing of electronic products the environmental protection
handed over to a qualified supplier for
laboratory in Topband Huizhou Park is equipped with relevant testing equipment with the
decomposition and sorting every week to every 10
ability to detect REACH TSCA and other hazardous substances. The relevant testing and
days and the corresponding joint records of
certification capabilities are recognized by the China National Accreditation Service for
hazardous waste handling are properly kept to
Conformity Assessment (CNAS) providing strong testing and certification capabilities to ensure
ensure that the quantity and types of hazardous
environmental compliance of products.waste handled are in accordance with those of the
hazardous waste actually generated and stored.CNAS Certification of
Huizhou Topband
27Environment
Training for environmental protection
The Company regularly carries out environmental protection training for new and transferred employees as well as three-level (company
workshop and shift) training for new employees providing employees with information about the basic knowledge of hazardous waste relevant laws
regulations and standards management systems and operating procedures of the Company the proper use and maintenance of PPE/supplies and
emergency rescue measures in case of an accident.Annual environmental management objectives and performance▼
Actual
Environmental Assessment Achievement of
Indicator Calculation Method Performance in
Objective Frequency Objectives
2023
Actual processing data/total waste
Disposal of hazardous
100% generated of the hazardous waste Once per year 100% Achieved
waste
treatment platform * 100%
Hazardous waste is
disposed as general 0 Number of occurrences Once per year 0 Achieved
industrial solid waste
The data covers the hazardous waste treatment in Huizhou Topband Vietnam Ningbo Taixing and Shenzhen plants.
28Topband ESG & Social Responsibility Report 2023
Pollutant management
Topband strictly manages pollutants as required. Specifically the Company has formulated a comprehensive pollutant
management system regularly employs a qualified agency to inspect the exhaust gas in the air and noise at boundary in projects and
production sites and arranges temporary monitoring after any accident.In addition to the production process Topband also utilizes technological updates and uses nano coatings to replace the original
coatings in some tools and home appliances to avoid negative impacts on the environment.Exhaust emission management
Topband has developed the Management Regulations for Exhaust Emissions and the Control and Management Guidelines for Wastewater
Discharge Exhaust Emissions and Noise in accordance with the Environmental Protection Law of the People's Republic of China the Air Pollution
Prevention Law of the People's Republic of China the Integrated Emission Standard of Volatile Organic Compounds for Stationary Pollution Sources
(DB 442367-2022) (Guangdong) the Emission Limits of Air Pollutants (DB 4427-2001) (Guangdong) the Ambient Air Quality Standards (GB
3095-2012) the Emission Standards of Pollutants for Battery Industry (GB 30484-2013) the relevant regulations applicable to the places where the
plants reside and other standards and norms on specific topics forming the system foundation of the hazard-free exhaust treatment.To prevent or reduce exhaust pollution and potential hazards and ensure good air quality and OHS environment in the plant Topband has taken a
series of measures:
* Equipment shrouds and air extraction systems are provided in the workshops to ensure that the equipment is in a sealed negative pressure state
during operation. The collected exhaust is transported to the exhaust treatment plant for adsorption reducing the pollution and odor from raw and
auxiliary materials used in the production.* All departments are required to take exhaust into consideration in new reconstruction and expansion projects install exhaust collection units for
pollutant-generating equipment and facilities provide specific exhaust treatment units for the existing equipment with large exhaust emissions
and include the prohibition of direct exhaust emission into the system. The exhaust collection units must work when the exhaust-generating
equipment is working.* The exhaust generated at the production site shall be collected by the exhaust collection unit and then discharged to the air after being treated
with the activated carbon device on the roof of the plant. Alternatively the exhaust shall be collected with the NMP gas condenser and then
treated by a professional third-party agency. The oily smoke emissions generated in the Company's canteens shall be purified with the oily smoke
purifier and then discharged to the air.* The Administration Department is responsible for monitoring/measuring the environmental operation condition. It shall organize the business
units to cooperate with qualified external agencies to check whether the exhaust emission meets the standard every year release the summarized
monitoring/measuring data on the national pollution source platform correct non-compliant activities and conduct tracking. In particular the
Lithium Business Unit shall be inspected at least twice per year.* The annual inspection of the Company's all cars are conducted regularly every year to ensure that exhaust emissions meet the requirements of
laws and regulations.Annual Environmental Management Objectives and Performance
Actual
Environmental Achievement of
Indicator Calculation Method Assessment Frequency Performance in
Objective Objectives
2023
The exhaust is treated to meet the
Obtain the test result
standards (Class II stated in DB Lithium Business Unit and
Industrial statistics from the
44/27-2001 for domestic plants) Taixing: twice/year Conforming Achieved
exhaust emission third-party agency
and then discharged to the air Others: once/year
every year
through pipelines
Air pollution No air pollution
0 - Once per year Achieved
accident accident occurred
The data covers the industrial exhaust emissions in Huizhou Topband Ningbo Taixing Vietnam and Shenzhen plants.
29Environment
Noise management
Topband's noise management regulations are based on the Emission Standard for Industrial Enterprises Noise at Boundary (GB 12348-2008). The
Company has properly arranged the noise pollution sources and taken effective isolation vibration-proofing noise reduction and other measures for
key noise sources. The Company organizes at least once a year the monitoring of the noise emission and hires external testing agencies with nationally
recognized qualifications to carry out the monitoring to ensure that the noise at boundary is acceptable.Annual environmental management objectives and performance▼
Actual
Environmental Assessment Achievement of
Indicator Calculation Method Performance
Objective Frequency Objectives
in 2023
The noise at boundary in Huizhou
Shenzhen and Taixing plants meet the
Taixing:
Class III stated in GB 12348-2008;
Obtain the test result twice/year;
Up-to-standard The noise at boundary in the east and
statistics from the Ningbo:
noise emissions at north sides of the Ningbo plant meets Conforming Achieved
third-party agency every once/year;
the factory boundary the Class IV stated in GB 12348-2008;
year Others:
The noise at boundary in the south and
once/quarter
west sides of the Ningbo plant meets
the Class II stated in GB 12348-2008;
The data covers the noise emissions in Huizhou Topband Ningbo Taixing and Shenzhen plants.Chemical management
Topband has established an effective process for identifying and evaluating environmental impact factors and formulated documents including the
Chemical Management System and the Chemical Introduction and Management Specification to regulate the whole lifecycle of chemicals covering
procurement acceptance storage use and recycling preventing any adverse impact on environmental protection and personnel safety. The Company
has installed anti-leakage devices for all chemical containers trains new and old employees on safe chemical operation and other safety knowledge and
arranges management personnel to patrol the site regularly to eliminate chemical leakage hazards and supervise operators to abide by safety operation
regulations so as to put an end to illegal use of chemicals and eliminate the risk of chemical leakage.Chemical lifecycle management
Procurement Reception Use Waste treatment
When procuring highly The Company has established a Detailed safe operation Waste highly polluting
polluting chemicals the Company strict reception system and the procedures and emergency plans chemicals are uniformly recycled and
reviews the qualifications and requested quantity and the usage of have been developed and the treated. The Company employs
credibility of suppliers to ensure that chemicals shall be checked and operators are regularly trained and professional agencies with
the chemicals are acceptable safe registered to ensure that the flow and assessed to ensure that they have the appropriate qualifications to process
and reliable. The Company also signs quantity of the chemicals are necessary safety knowledge and highly toxic radioactive and other
safety agreements with suppliers to accurate. skills. Meanwhile regular safety hazardous waste.specify the safety responsibilities and inspections and assessments are
obligations of the parties. conducted at the chemical storage
and use sites to timely identify and
eliminate safety hazards.In product and packaging design Topband follows the Restriction of Hazardous Substances in Electrical and Electronic Equipment (RoHS) the
Regulation for Registration Evaluation Authorisation and Restriction of Chemicals (REACH) and the Halogen Free Specification to reduce the use of
hazardous components or chemicals at source.Annual Environmental Management Objectives and Performance
Environmental Assessment Actual Performance Achievement of
Indicator Calculation Method
Objective Frequency in 2023 Objectives
Chemical leakage According to the statistics of actual
0 Once/month 0 Achieved
accident chemical leakage accidents
The data covers the chemical management in Huizhou Topband Ningbo Vietnam Taixing and Shenzhen plants.
30Topband ESG & Social Responsibility Report 2023
Water resource management
Topband has formulated the Emergency Control Procedures for Nonconforming Discharge of Wastewater from Wastewater
Treatment Plants as per the Emission Limits of Water Pollutants (DB 44/26-2001) the Integrated Wastewater Discharge Standard (GB
8978-1996) and the regulations applicable to the regions where the Company's global businesses reside. Rainwater is collected as per
the regulations. Three types of wastewater are identified with their treatment programs specified to ensure that all wastewater
discharged is acceptable.Topband's Wastewater classification and treatment
Domestic wastewater Kitchen wastewater Industrial wastewater
It mainly involves toilet wastewater. It is It is filtered and then discharged into the It is treated by a qualified third-party
discharged into the municipal pipeline network drainage pipes in the industrial park. hazardous waste treatment agency for zero
through the existing drainage pipes in the parks discharge of industrial wastewater. In Topband
for treatment in the municipal wastewater Mexico the wastewater with some chemicals
treatment plant. A domestic wastewater from the laboratory is first discharged into a
treatment plant is built in the Topband Vietnam special collection tank and then treated by a
plant to discharge the domestic wastewater. professional third-party agency.Topband continuously strengthens the management of water resources through comprehensive and diverse
measures:
* Conduct water accounting or audits analyze the water consumption * Strictly investigate and deal with the behavior of mixing industrial
based on the monthly meter readings identify data discrepancies and wastewater and domestic wastewater prohibit each department from
resolve them in a timely manner. dumping the oils and chemicals used and the hazardous waste liquids
* Train the employees on water compliance so that they can and residues generated (such as all kinds of wastes soil and garbage)
differentiate between domestic and industrial wastewater and into the rainwater pipe network or flush them into the sewers. The
implement water conservation measures in production and life. departments in violation of the regulations will be imposed a
* In the process design replace harmful materials with harmless ones disciplinary warning.and prioritize chemicals that cause less environmental pollution when * Regularly clean the grease trap in the canteen to prevent wastewater
chemicals must be used. with high oil content from being directly poured into the sewer
* Install water-saving faucets in the hand-washing stations in the office without separation or treatment; provide filters at the sewage outlets
area and provide water-saving sprinklers and faucets in the in the canteen and collect the filtered garbage as domestic waste.dormitory rooms. * It is prohibited to place garbage in designated locations or areas to
* Enforce rainwater and sewage diversion and requires all departments prevent the sewage from the garbage flowing into the storm drains
to incorporate appropriate facilities for rainwater discharge into their during rainy days.programs for new reconstruction and expansion projects. * It is forbidden to wash vehicles in the Company to avoid washing oil
stains into rainwater or sewage pipes.* Wipe up oil and chemicals dripping on the floor with a rag and do
not flush them with water into the sewers.Annual Environmental Management Objectives and Performance
Environmental Assessment Actual Performance Achievement
Indicator Calculation Method
Objective Frequency in 2023 of Objectives
The domestic wastewater in domestic plants
shall be discharged into the municipal
network for further treatment;
The domestic wastewater in the Topband
Taixing:
Up-to-standard Up-to-standard Vietnam plant shall be treated with the
twice/year Conforming Achieved
wastewater discharge discharge self-built domestic wastewater treatment
Others: once/year
plant;
Industrial wastewater is taken as hazardous
waste and treated by a qualified third-party
hazardous waste agency.
31Environment
Low-carbon production paths
Topband is exploring the "path to realize low-carbon manufacturing". With reference to the advanced experience it develops the
climate action strategies and measures of "increasing energy efficiency + increasing new energy" and "industrial carbon reduction +
conservation for carbon reduction". It put forward the strategic goal of "creating carbon-neutral parks zero-carbon factories and green
products" to improve productivity and efficiency while realizing carbon reduction form a win-win situation for the economy and the
ecology."Two increases" - energy efficiency increase and "Two reductions" - industrial carbon reduction and
new energy increase conservation for carbon reduction
The first increase is to improve the energy efficiency. The Industrial carbon reduction refers to optimizing and
Company accelerates product upgrade through low inventory and upgrading the industrial structure. Topband invests in the layout
manufacturing collaboration and reduce carbon emissions in the of green businesses including lithium battery energy storage
production by improving process management utilizing production automation industrial automation inverter
low-carbon raw materials and conducting low-carbon treatment technology mobile power switch and green transportation to
of high-carbon energy. optimize and upgrade the industrial structure.The second increase refers to developing renewable energy Conservation for carbon reduction means developing
including solar energy hydro energy wind energy biogas low-carbon culture. Resource recycling paperless office green
hydrogen energy and bioenergy. Topband takes PV as the main business energy saving in office adoption of energy-saving and
entry point and installs PV roofs in Shenzhen Huizhou Ningbo water-saving devices and the increase of green plants within the
and Ninghui Parks to generate part of the production electricity. Company are promoted.Cases
Creating a "Two Increases and Two Reductions" Environmental Management Demonstration Park -
The "14th Five-Year Plan" of Huizhou Topband Electrical Technology Co. Ltd.As a major park of Topband Huizhou Topband Electrical Technology Co. Ltd. (hereinafter referred to as "Huizhou Topband") is
a key area for the practice of the "two increases and two reductions" strategy. As per the Law of the People's Republic of China on
Conserving Energy and other laws and regulations as well as the General Rules for Stipulation of Enterprise Energy Conservation
Plan (GB/T 25329-2010) and other technical standards Huizhou Topband has prepared the "14th Five-Year" Energy Conservation
Plan of Huizhou Topband Electrical Technology Co. Ltd. (hereinafter referred to as the Plan) to fulfill the primary responsibility and
stimulate the energy-saving potential which will serve as a guide of Huizhou Topband's energy management during the period of
2021-2025.
The core of the Plan is to save resources and improve resource utilization. Based on the current energy management performance
and available resources the energy management system and processes will be improved and outdated processes and equipment will
be eliminated or upgraded to reduce energy consumption per unit of product and optimize the energy structure.Huizhou Topband uses a three-level energy management network to implement the coordination decision-making execution and
supervision of the energy management system and an assessment system is adopted to ensure the realization of the energy saving
responsibility objectives.
32Topband ESG & Social Responsibility Report 2023
Organization of Huizhou Topband Energy Conservation
Working Group
Group Leader
Administration Manager
Deputy Group Leader
Administration Supervisor
Microelectronics Electrical Business Unit Electronic Control Lithium Battery Business
Department Manufacturing Center Business Unit Unit
Manufacturing Center Supervisor Manufacturing Center Manufacturing Center
Supervisor Supervisor Supervisor
With the 2020 composite energy consumption as the benchmark Huizhou Topband set the "14th Five-Year" energy saving target
and the target of composite energy consumption reduction per unit of production value at 15% (equivalent to 686 tons of standard
coals)."14th Five-Year" energy conservation target▼
Items Unit 2021 2022 2023 2024 2025 Total
Energy
Standard coal (t) (tce) 216 219 91 31.5 128.5 686
conservation
Ratio % 31.49% 31.92% 13.27% 4.59% 18.73% 100%
"14th Five-Year" comprehensive energy consumption target and decline rate per
unit output value▼
2020
Items Unit 2021 2022 2023 2024 2025
(Benchmark)
Comprehensive energy
kgce/RMB
consumption per unit 11.89 11.33 10.76 10.52 10.44 10.10
ten thousand
output value
Cumulative decline rate % - 4.71% 9.50% 11.52% 12.20% 15.05%
33Environment
Production Paradigm of "Two Increases and Two Reductions" - Cell Production Line of Nantong Topband
Youneng Technology Co. Ltd.Nantong Topband Youneng Technology Co. Ltd. (hereinafter referred to as "Nantong Topband") is engaged in investment and
technology development in the field of new energy cells focusing on customized solutions for household energy storage industrial
and commercial energy storage and lithium batteries for two or three-wheeled vehicles. To reduce the energy consumption during the
production of lithium batteries Nantong Topband built a new cell production line in 2023 with energy saving and environmental
protection full considered from the planning to the implementation of the line.* The Park installed PV power generation and industrial and commercial energy storage facilities on the building roofs and other
available park spaces making full use of clean energy and electricity valley to supply power to the production line.* The production line uses steam heating for the heating and dehumidification in key processes (such as coating) saving the
electricity by 60% compared with other lines with the same capacity.* Processes such as rapid pulping and double-sided coating are upgraded with fixture-assisted furnace technology saving the
process time and corresponding energy consumption by 30%-50%.* In the tail gas recovery with NMP the line applies new technologies such as cooling and multiple layers of rotary adsorption to
achieve a tail gas recovery rate of over 99.9% eliminating the potential impact of tail gas on the environment.* The production line is equipped with a fast accurate and reliable intelligent logistics and warehouse management system
significantly reducing the operating costs of the plant.* Solid and liquid wastes generated in the R&D of cells are key control targets. Special personnel are arranged to manage the
environmental impact of R&D raw materials from mobilization production to testing. In terms of the hazard-free treatment of
wastes in addition to treatment by qualified environmental protection agencies R&D personnel also develop workflow provisions
for the decomposition and analysis of the cell and the waste battery shall be completely discharged to ensure that the waste battery
is safe for transportation and storage.Cell Production Line of Nantong Topband
34Topband ESG & Social Responsibility Report 2023
Resource recycling
Topband integrates the awareness of resource recycling into product development and design and fully develops the value of
recycling.* Select environmentally friendly materials: The changes in the form of energy storage products put forward higher environmental
requirements for the selection of materials. When selecting materials for lithium battery products Topband avoids the materials
containing hazardous substances and uses non-toxic harmless recyclable/biodegradable or recyclable/degradable materials to
improve the sustainability of the products. The Company produces recycled lithium products by recycling and reusing materials
from lithium-ion batteries thus improving the resource utilization efficiency and reducing the dependence on virgin mineral
resources.* Optimize product design: In the product design phase the charging and discharging efficiency cycle life and environmental
protection factors of the battery are fully considered and an advanced BMS is adopted to optimize the use of the battery and
reduce waste and unnecessary replacement. In the design of a complete unit the Company pays more attention to improved energy
efficiency to reduce the greenhouse gas emissions during the use of the product.* Practice environmental production in production: The production process is strictly controlled and environmentally friendly
processes are used to reduce waste and pollution emissions striving to achieve the goal of zero emissions.* Manage environmental impacts at the end of product life: Solid waste such as copper foil is collected separately and handed over
to qualified manufacturers for recycling. In 2023 the Company earned RMB 1146519 from solid waste recycling.* Recycling of other materials: Exhibition materials some packages and batteries are recycled and returned to suppliers or handled
by a third party; the recycling and circulation of used clothing computers desks and chairs are continuously carried out in the
Company. In 2023 50 computers and 60 sets of office desks and chairs were circulated from the Binh Duong Plant to the Dong
Nai Plant for reuse.* In addition Topband also actively applies chemical recycling technologies. For example advanced solvent evaporation
liquid-cooling recycling has been adopted for NMP solvent which can realize a recovery rate of over 90% for the cathode paste
solvent. Solvent recycling helps save the solvent resources and reduce the potential environmental impact of solvent discharges.Fabric Recycling Bin Battery Recycling Bin
35Society
社会
SOCIAL
Topband is committed to the exploration of effective
downstream application scenarios in intelligent control providing
customers with innovative and sustainable solutions and reliable
delivery quality and the happiness and sense of belonging to
employees. Topband looks forward to working with customers
and employees to create value in the industry.Industry Responsible
No poverty Good health and Gender equity Affordable and Decent work Reduced innovation and inequalities consumption
well-being clean energy and economic infrastructure and production
growth
36Topband ESG & Social Responsibility Report 2023
Guarantee Customer Benefits
Topband focuses on the R&D production and sales of intelligent control system solutions i.e. with the "electronic control
motor battery power source and IoT platform" technology as the core providing a variety of custom solutions for home appliances
tools new energy and other industries.A Global Leading Provider of intelligent control Solutions
N + Intelligent Control Solutions
For Various Industries
Home Appliances Power Tools New Energy Industry Automation
Driven by Technology Driven by Technology
Core Technology of "four
Electrics and One Network"
IoT platform
Electric Control Motor Technology Battery Technology Power Technology
Providing Value to our Customers with Intelligent Control Technology and
Benefit Everyone
37Society
Power The Company provides a range of customized products and services from product concept design and
development to manufacturing and delivery for brand customers in the tools industry (including power tools
Tools garden tools and other specialized tools).The business scope covers the four categories of components
namely controller motor battery and power source as well as some intelligent products.Application scenarios
Products
The Company provides a range of customized products and services from product concept design and
Home development to manufacturing and delivery for branded customers in the home appliance industry. The
appliances products are mainly involved in controller and motor categories including home appliance master control
power control motor drive and control display control etc. The products are mainly used in various fields
such as HVAC kitchen appliances cleaning appliances health care lighting and smart home.Application
scenarios
Products
38Topband ESG & Social Responsibility Report 2023
In the field of new energy Topband has formed a complete product matrix covering core components
New complete units and system solutions.energy
In terms of core components the Company has completed the layout of "1C1C3S" core products
including the charging module cell BMS PCS and EMS.For the complete unit the Company has developed a full range of products such as AC and DC
charging piles household energy storage industrial and commercial energy storage communication backup
power and portable energy storage devices.At the system solution level the Company combines the core technical capabilities of the complete unit
and cloud platform and develops the complete solutions for scenarios such as PV energy storage and
charging zero-carbon parks and household green energy.Products Application scenarios
39Society
In the industrial control industry our business covers R&D production and sales of specialized
Industry
industrial intelligent control products mainly involving stepping servo drive and motion control products.Automation The Company focuses on downstream automation equipment customers and provides them with controllers
drives and motors. Downstream applications involve 3C electronics robotics medical equipment
semiconductor equipment PV and lithium battery. We committed to helping automation equipment
manufacturers improve design performance reduce manufacturing costs and speed up the development of
new equipment.Application
scenarios
Products
Topband attaches great importance to customer demand. To provide customers with quality products and services the Company
conducts customer satisfaction surveys on an annual basis to get customer feedback on our products and services.In 2023 the Company collected 429 questionnaires from 199 customers to comprehensively understand customers' overall
satisfaction satisfaction with specific elements and willingness to increase orders. By the horizontal and vertical comparison of
multi-year data for each element we found that customers focus on Topband's responsiveness innovation product quality cost and
risk prevention and control. The Company will continue to take customer concerns as the anchors of business development and
identify the direction and space for business improvement to realize high-quality development.
40Topband ESG & Social Responsibility Report 2023
Flexible response
Topband has initially formed an international layout that is "based in China involved overseas and close to customers". The
Company's R&D and production bases are located in China's electronics manufacturing centers - the Pearl River Delta and the Yangtze
River Delta. With the continuous expansion of downstream applications the Company has gradually built up advantageous domestic
and overseas customer service capabilities in the fields of home appliances tools and new energy and has become a pioneer
performing the international layout among the domestic intelligent control industry. The Company locates its R&D headquarter in
Shenzhen China and has set up 15 production/R&D bases around the world spreading across China Vietnam India Romania
Mexico and other countries so that the agile services can be delivered to customers by a base in the proximity.Topband's Internationalization Process
2023
Mass production in the
2019 plant in Mexico
Production capacity The output value of
building in Vietnam overseas plants accounted
for 16% of the total
2021
The output value
of Huizhou
2016 Industrial Park I 2022
2004 Huizhou Industrial Park I exceeded RMB 5 Plant in Vietnam: The
Shenzhen Shiyan Industrial was put into operation; the billion; output value exceeded
Park (Headquarter Base) site of the subsidiary in The plants in RMB 800 million
was put into operation India was selected Romania and The plant in India: The
Mexico were double growth was realized
under construction
Cases
Tackling difficulties and winning customers' trust with out of expectation products and
services
Due to the delivery delay of its original BMS hardware supplier the customer P in the field of industrial and commercial energy
storage urgently found Topband and Topband started its first OEM cooperation with P. In the face of risks such as rare core materials
weak competition in program design long procurement cycle and high prices of non-core materials and the lack of performance
advantages of some of the raw materials compared with the same type of raw materials in the market the customer P still requires
delivery as originally scheduled. With many years of mature BMS R&D experience and technology accumulation the R&D team
quickly identified the customer's risky material list got familiar with the product performance requirements cooperated with the
Company's supply chain management team to accurately recommend the substitutes and quickly completed the preparation selection
internal inspection and customer review. The delivery was finally completed within a short period of time as required by the customer.The Company gradually realized the localized delivery of the customer's three global production bases forming the shield of
technology and supply capabilities. In 2023 the Company realized exponential growth in the sales revenue of BMS for industrial and
commercial energy storage.
41Society
The Company has formulated the Handling Procedure for Customer Quality Complaint so that customers can file complaints
through special channels for issues arising from the use of products and services. After a customer complaint is received the sales staff
will categorize the information and transfer it to the relevant department and implement the handling mode of "responding to
customers within 4 h providing temporary measures within 1 working day and providing improvement reports within 3
working days".Provide temporary measures within 1 Provide improvement reports within 3
Respond to customers within 4h
working day working days
For the issues to be improved relevant departments will establish improvement teams in time; for major issues expert teams will
also be invited to intervene. Temporary measures cause analysis corrective measures preventive measures and a series of initiatives
are output to form a complete 8D report for the customer within the specified time and the case is followed up to ensure its closure
and no recurrence. In addition the Company will organize management and summary work and share cases to horizontally share
experiences with more colleagues and ensure the widespread improvement of customer service capabilities throughout the Company.In terms of process organization Topband continues to optimize the organization adheres to be customer-oriented and has
formed a three-tier customer service organization of front middle and back ends. The front office being flexible and efficient quickly
responds to customer needs; the middle office being professional and agile provides a strong and sufficient resource support for the
front office; the back office aims to seek high and broad prospects and ensure a long-term future-oriented support for the front office
and middle office.The Company launched the "customer-oriented" process change in 2017. After years the Company has formed a reliable process
management system with Topband's characteristics in SAP BOM CRM SOP and other process management. In 2023 Topband with
a customer-oriented and data-driven approach grasped the opportunity of digital transformation and formulated a digital
transformation program with full participation by focusing on customer experience operational efficiency and model innovation. On
this basis the Company formulated the Digital Change Management System and released the Digital Transformation Blueprint. The
front middle and back ends were built to gradually realize business perception interconnection intelligence and Real-time
On-demand All online DIY and Social (ROADS) experience reducing the production and communication costs and improving
operation and management efficiency.In 2023 the Company focused on the R&D device Customers Employees Suppliers Consumers
Digital operation
Experience
library preference projects and the standard R&D BOM Collaboration Online Reconciliation Invoice issue improvement Payment delivery (simpler
transaction)
management platform for to support the Company's agile Product/Solution Device library Strategy decoding Planning Production Risk-based
platform platform Bidding platform platform platform platform preparation
platform
pilot production process and they were fully Compa Platform-based ny operations (flexible
Strategy & marketing R&D Finance field operations)
implemented within the Company. In particular the R&D Marketing Requirement Product Project activities management planning management
Sample Pilot Strategic purchase Customer
BOM management platform can reduce the human management management production Device engineering
Supply chain Production Digital business
Admin command
screening through standard device selection and Forecast & Intelligent flow (higher flow Master schedule Material plan Automation preparation logistics module efficiency)
Supplier Quotation and Production Quality
management bidding management management Visualization
automatic system coding recommendation reducing the Self-service
analysis
Data assets and
R&D selection time from the original 48h to 2h with the Customer Product Delivery Order Project Threads Inventory digital operations Data market
Delivery Production Quality Employee Financial Supplier
R&D selection efficiency improved by 87.5% and the
IT business system Data lake Private cloud Web services Instant messaging Powerful IT
trial production cycle reduced by 7-9 days. support platform
Topband's Overall Digital Transformation Framework
42Topband ESG & Social Responsibility Report 2023
Product innovation
In terms of intelligent controllers the downstream product update is accelerating with more and more application scenarios
emerging. Chinese enterprises with the technology accumulation and innovation capabilities will get more opportunities for
development. Topband adheres to the core value of "insisting on the value of technology" and fully considers the reliability
environmental protection and economy in the process of product development to provide innovative solutions for customers.The Company relies on its own R&D capabilities to carry out core work centered on customer innovation needs helps customers
accurately identify new market demand and promote the quick implementation of specific product solutions to win market
opportunities. In addition the Company also takes innovation as a value that it adheres to for a long period of time wins customers'
trust with innovative solutions builds its market competitiveness and enhances the added value of end products so as to truly drive
the development of the industry create value for customers and gain their recognition.In terms of R&D management mechanism the Company introduced the integrated product development (IPD) system and
process in 2016. Being customer value-oriented the Company created a fast flexible efficient and collaborative product development
system covering demand insight process collaboration and development integration making the product development process
innovative responsive and effective.R&D process: Product planning project management R&D testing and project evaluation are controllable and in a closed loop;
R&D team: An "iron triangle" with the front and back ends is formed; the solution managers and sales managers respond quickly
to customer needs and provide solutions; and the team works closely with the service manager to face customers;
R&D flow: IPD system guarantee;
Perfor Organizational
mance High-level decision-making management mechanism (DCP) transformation
incentiv
es
SP - Strategy Planning (with EBO)
MM - Marketing Management
Product
innovatiCDP - Charter IPD - Integrated
on
Development Process Product Development
RM - Requirements Management
TP - Technical Planning Process
Technology
innovation
TPD - Technology & Platform
Development Process
Project management Reform management Sub-processes Methods and tools
Organizational
Leadership and teamwork skills capabilities
IPD Process Framework
43
Communica Incentive Coaching Target
tion
Resources
Resources
ResourcesSociety
To encourage innovations by employees and transform R&D innovations into achievements in a timely manner in 2023 on the
basis of the Patent Operation Management System and the Patent Application Management System the Company developed the
Guidelines for Patent Application Rewards to increase the amount of reward for granted patents stimulating the protection of internal
innovations and promoting the embodiment of R&D benefits.
2023
Type
Patent for invention Utility model Appearance Total
New applications 74 193 82 349
Accumulative patent applications 1137 1747 344 3228
New granted patents 53 229 64 346
Accumulative valid patents 277 1517 275 2069
Valid foreign patents in the
-5
current year
Accumulative foreign valid
-20
patents
In 2023 the Company focused on market opportunities in new business areas increased R&D personnel in core areas when
appropriate and maintained the R&D investment stably above the average level in the industry.
21.50%
2004 9.28% 2089 items
Proportion of R&D
R&D personnel Proportion of R&D input Total patents
personnel
As a leader in the intelligent control industry in China Topband actively participates in the industry standardization construction
and promotes the development of the industry. In the fields of home appliances and tools the Company is now a member of the
National Standardization Technical Committee for Household Automatic Controllers and a member of its sub-committee
Sub-Technical Committee for Inverter Controllers. The Company has participated in the development and revision of more than 30
national industrial and IEC standards including the Electromagnetic Compatibility Requirements for Home Appliances Electric
Tools and Similar Apparatus - Part 1: Emission and the Intelligent Automatic Electrical Control Systems for Home Appliances and
Similar Use - Part 1: General Requirements. In the field of new energy as a member of Shenzhen Standardization Technical
Committee for Energy Storage Topband Battery is actively involved in the development of standards for household energy storage
industrial and commercial energy storage and other related areas and joined four standard development working groups i.e. the
Working Group for Intelligent Control of Wireless Home Appliances Working Group for Sensors Working Group for DC Controllers
and Working Group for Controllers for Electric Means of Transportation.
44Topband ESG & Social Responsibility Report 2023
Quality product
Product quality is the foundation of business survival and development. The Company has developed the Quality Manual as the
guiding principle of Topband's quality management which also represents the management's solemn commitment to quality
management. Many products of the Company have obtained the Hazardous Substance Process Management Certification (QC080000).During the project introduction the Company determines with the customer the areas to sell the product and the laws regulations
and environmental directives and other requirements to follow and strictly follows them during the R&D and production. In the event
of changes related to product manufacturing the Company will promptly assess and record the risks related to the health and safety of
customers and communicate with each party in a timely manner by means of DCN (Designing Change Notice) and ECN (Engineering
Change Notice).For major changes related to accessories and equipment that may contain risks the Company will assess them through
safety testing and small-scale production for trial and will carry out large-scale production after they meet the requirements.During the product R&D and production the Company takes the initiative to formulate the Operation Management Guidelines for
Hazardous Substances stating the implementation of the environmental protection policy in device introduction incoming material
inspection and process monitoring. Each business unit establishes a specialized environmental protection team to maintain the
operation and establish environmentally friendly production processes of high standards. The raw materials used in R&D and
production are managed by specialized personnel from mobilization production to testing and scrapping to reduce waste or
unnecessary pollution.Material selection for R&D: The Company selects recyclable and biodegradable materials and all materials must meet the
ROHS requirements and even the REACH and HF requirements in some markets so as to avoid the use of materials containing
hazardous substances.Product design: In the project coding node the environmental protection specialists shall strictly audit the environmental
protection information of suppliers consider the overall environmental protection and low-carbon performance of the products and
check the environmental compliance of raw materials to reduce the pollution from the source.Supplier selection and approval: SQE conducts background investigation on-site audit and agreement signing on suppliers'
environmental management hazardous substance management and social responsibility fulfillment. IQC performs environmental
testing and confirms the safety compliance requirements; for any abnormal environmental protection needs the environmental
protection specialists will be involved to return the abnormal materials and restrict the supplier concerned.Production control: For wave soldering samples are taken weekly to test the solder composition and IPQC checks whether the
results meet the environmental requirements. The product production system is tracked using the MES system.The Company regularly updates the component safety compliance and environment impact assessment reports to meet customer
requirements and carry out laboratory sampling of mass production products according to regulations to avoid non-conforming
products flowing to the market and customers. In order to ensure that the safety data statistics can be implemented the MSDS is
collected for all related chemicals used in the Company's products. In the R&D of cells the solid and liquid wastes generated are key
control targets. In terms of wastes in addition to treatment by qualified environmental protection agencies R&D personnel also
develop workflow provisions for the decomposition and analysis of the cell and the waste battery is completely discharged to 0% SOC
to ensure that the waste battery is safe for transportation and storage. For new energy the Company's products can be remotely
monitored via a cloud platform. The after-sales service personnel regularly monitor and maintain the customer's energy storage system
as required and find and solve problems in advance to ensure the stable operation of the system.For product quality inspection the Company has prepared the Product Monitoring and Measurement Control Procedure which
requires systematic monitoring and measurement of the product quality condition hazardous substance condition and safety
performance during the production. The Procedure covers IQC IPQC OQC QA and other related processes ensuring that the records
and labels of each link are effectively managed. For battery products the Company issues a special Material Safety Data Sheet and
specifies in the data sheet the fire safety measures safety measures for leakage of hazardous materials storage or explosion prevention
and response measures and waste disposal measures based on the local practices.
45Society
In product delivery the Company establishes five inspection systems namely first inspection patrol inspection transfer
inspection warehouse-in inspection and loading inspection ensuring that the products shipped to the customers meet the requirements.Quality
Design Delivery
testing
Quality inspection First inspection patrol inspection
Select environmentally friendly
Hazardous substance inspection transfer inspection warehouse-in
materials
Hazardous substance inspection inspection and loading inspection
For the product production the Company has formulated a special production emergency plan and emergency response
procedures. The emergency plan includes the following: one general emergency response plan two special emergency response plans
for fire accidents and evacuation respectively and 14 on-site disposal programs for electric shock drowning explosion poisoning and
asphyxiation object strikes mechanical injuries and other situations. The emergency plan contains emergency response procedures
developed based on the category degree of harm and influence scope of the safety accident. The response procedures cover emergency
command rescue and relief alert and evacuation medical rescue logistic support communication and liaison.The Company informs customers of the potential health impacts that may be associated with products and services through
product specifications instruction manuals and conspicuous warning signs. To ensure the safety of materials selected Topband
requires raw material suppliers to provide third-party hazardous substance test reports issued within one year. In product design and
development the Company controls the demand analysis design review simulation testing sample testing production process control
and other processes in strict accordance with the IPD framework; The product temperature control short circuit protection circuit
design software design and the charging and discharging of battery products are strictly evaluated to ensure the safety of the products
in use; product failure analysis before delivery internal testing and verification and necessary external testing and certification are
specified to avoid safety risks of the products. At the same time the Company will set up a special quality assurance department to
assure the product safety including after-sales service quality improvement and other aspects of the product.For potential product use risks or health and safety risks the Company has established a sound after-sales system and rapid
response process. For safety risk problems found by the customer the sales staff will receive the feedback and the
R&D/quality/manufacturing and other related departments will cooperate to recall or improve the products as per the Company's
Product Recall Control Procedures. For products that have been shipped but have safety risks (such as batteries and complete units)
the customers will be notified immediately and the products will be recalled or improved.
46Topband ESG & Social Responsibility Report 2023
Cases
High-quality testing strength - Topband Central Lab
Established in 2005 Topband Central Lab now covers about 6000 m2 after more than ten years of development involving total
investment of more than RMB 80 million. Specifically there are Shenzhen Topband Central Lab Huizhou Topband Central Lab and
Ningbo Topband Central Lab.As a professional comprehensive certification and testing technology service platform the Central Lab provides services
covering a wide range of fields such as electromagnetic compatibility radio frequency reliability safety compliance failure analysis
and device verification and environmental protection. The services include product compliance assessment and verification product
reliability verification program design and testing product certification consulting failure analysis and device verification and other
diversified quality services.Adhering to the quality policy of "being scientific and rigid objective and fair standard and controllable and traceable (data)"
the Central Lab accumulates experience and strictly controls the quality of products to provide customers with professional fair
accurate and efficient testing services and technical support.* EMC testing * Hazardous substance analysis and * Component recognition and failure
* Instrument calibration testing analysis
* RF testing * Product reliability testing and * Product safety testing
improvement
TUV Rheinland CTF TUV SüD CTF
UL-WTDP Laboratory CNAS Accredited Laboratory SGS CTF Laboratory
Laboratory Laboratory
3m compliant semi-anechoic test 3m method anechoic test chamber Safety compliance and electrical
chamber facility (radiation emission) facility (radiated immunity) performance testing lab
47Society
Stimulate Organizational Vitality
Topband regards talents as the core competitiveness of the enterprise attaches great importance to organization construction and
gathers talents with grand ambitions sense of mission and internal drive striving to create a working environment that is energetic and
inclusive and enables continuous progress. The Company has integrated the organizational evolution strategy into its 2030 vision
aiming to strengthen the talent team increase the number of talents in key positions build stronger middle and back end capabilities
empower the "iron triangle" teams and build a customer-centered process-oriented organization.Employment of employees and their rights and interests
Topband strictly abides by the Labor Law of the People's Republic of China the Contract Law of the People's Republic of China
and the labor laws and regulations of the regions where it operates. It resolutely opposes the employment of forced labor and child
labor and ensures that all labor practices are lawful and compliant.The Company explicitly opposes the employment of child labor and adopts strict recruitment management measures including
using face recognition and ID card information and other effective ways to identify the ages of applicants ensuring that all employees
meet the legal age to work when they are employed and avoiding mistakenly hiring child laborers due to false age credentials. In
addition Topband has formulated the Child Labor Prohibition Procedure and the Child Labor Incident Remedy Procedure specifying
that child laborers who do not meet the age requirements explicitly stated in their country shall not be hired and providing remedies
for possible child labor incidents. With regard to forced labor the Company has established the Forced Labor Management Procedure
to clearly specify its opposition to the employment of forced labor and taken appropriate management measures to prevent it. The
Company also provides human rights-related training courses for new employees and sets out relevant regulations in the Employee
Handbook to raise their awareness and understanding of child labor slavery and human trafficking.Topband has adopted a number of monitoring and auditing measures to ensure labor compliance including regular random
checks of employee rosters and on-site interviews for confirmation. The Company has established reporting channels such as WeCom
and park mailboxes so that employees and external stakeholders can timely report any possible violations. With these measures
Topband is committed to establishing a fair legal and ethical working environment throughout Topband and its supply chain.Topband manages the working conditions of its employees in strict accordance with relevant laws and regulations and applies
high standards and strict requirements with all working conditions determined by the Company's top management deliberations. To
protect the rights and interests of employees the Company has formulated the comprehensive and strict Employee Manual in
accordance with the law. Topband attaches importance to and safeguards the employees' rights to freedom of association and collective
bargaining. Specifically it has formulated the Management Procedure for the Rights to Freedom of Organizing a Trade Union and
Collective Bargaining for all employees aiming to establish and maintain an effective grievance and complaint mechanism and ensure
that its operation complies with the local laws and guidelines on social responsibility so as to safeguard the rights and interests of the
employees.Topband adheres to the principle of employing the locals to promote local employment support the local economy and build up a
good relationship with the community. Currently the employee localization has been 99% in Topband India and 95.33% 92.5% and
78.69% in Topband Vietnam Topband Mexico and Topband Romania respectively demonstrating the Company's determination to
promote local employment and social integration globally and reinforcing its social responsibility and position in the global market.In addition Topband focuses on enhancing employees' childcare rights and interests and provides employees with the parental
leave in accordance with local laws. In Shenzhen for example female employees can enjoy up to 178 days of maternity leave and one
hour of breastfeeding leave per day. The Company also encourages male employees to actively participate in childcare by providing 15
days of paternity leave ensuring that both male and female employees can enjoy the parental leave.
48Topband ESG & Social Responsibility Report 2023
Data related to parental leave▼
Unit Male Female
Total number of employees entitled to parental leave by gender Person 2348 2424
Total number of employees taking parental leave by gender Person 297 245
Total number of employees who return to work in the Reporting Period
Person 271 165
after parental leave by gender
Return rate of employees on parental leave by gender Percentage 91.25% 67.35%
Retention rate of employees on parental leave by gender Percentage 47.60% 38.18%
Occupational Health and Safety
Topband attaches great importance to the health and safety of its employees. It has established comprehensive systems and
obtained the ISO45001 - Occupational Health and Safety Management System Certification as well as SMETA BSCI WCA and
other social responsibility certifications. In November 2022 the Company established the Work Safety Management Committee
(hereinafter referred to as "Safety Committee") which is responsible for decision-making and routine management of safety within the
Company. Its responsibilities include the following: review and supervise the implementation of work safety regulations and systems
and work safety plans; set annual targets and reward and punishment mechanisms; conduct quarterly assessments; improve the safety
standardization management system; and investigate and handle accidents. The manager of administration department in charge of
safety affairs serves as the Chairman of the Safety Committee and the managers of each business unit serve as members. A regular
meeting representing 100% of the employees is convened every quarter.To manage and control the occupational health risks that may occur in the workplace Topband has adopted four measures:
evaluation of the current situation of occupational hazards inspection of occupational hazards in the workplace occupational health
checkups for employees and routine work safety inspections. The Company has established the ISO45001 Occupational Health and
Safety Management System and conducts internal and external audits on a regular basis to ensure the effective operation of the system.For the occupational health hazard sources identified the Company clearly requires all departments to take specific measures to
continuously strengthen the construction of occupational safety and health system.In 2023 Topband took comprehensive measures for employee health and safety for better management. The Company conducted
regular safety inspections and maintenance of equipment to ensure the safe operation of all equipment; for key positions the Company
arranged occupational disease health checkups different from those for ordinary employees so that employees affected by
occupational hazards receive regular professional checkups every year; in addition the Company implemented a strict safety training
system and all new employees are required to complete the three-level safety training and pass the examination before they can take
up their jobs; all employees in the production line received at least 20 minutes of safety training every month effectively raising the
safety awareness and ability of the employees.Topband's health and safety policy covers the work and activities of the suppliers and subcontractors in the Company. The
Company has established regulations and procedures such as the Safety Management System for Outsourced Works and the Control
Procedures for Outsourced Service Providers and the Safety Officer shall be responsible for the safety training of outsourced
contractors and properly keep relevant training records. All outsourced personnel must receive safety training before entering the scope
of the Company so that they fully understand and comply with the Company's health and safety policies including operation
specifications precautions and response procedures for abnormal situations. In addition the Company has established an effective
monitoring mechanism to ensure that the work behavior of outsourced personnel complies with the Company's safety criteria.
49Society
To further manage the OHS risks Topband has set up a set of anonymous reporting mechanism so that all employees and
suppliers can report any safety hazards or violations without revealing their identities. The Company has formulated the Employee
Complaint Handling Process and the Regulations on the Protection of Whistleblowers and strictly protects the information of
whistleblowers in accordance with audit regulations to safeguard the legitimate rights and interests of the same. In addition the
Company has set up a special reporting hotline and procedure and encourages employees to actively report OHS-related issues
through various channels such as the employee experience platform and the bulletin boards in the park.Topband has established a complete set of response mechanism for occurred OHS incidents including the procedure for
identifying danger sources the Management System for Work Safety Accidents and the Reporting Form for Workplace Accidents.This mechanism ensures that hazards can be quickly identified after an incident and corrective measures can be taken timely and
continuous improvement implemented ensuring that the Company can learn from each incident and improve its safety management. In
2023 Topband had no cases of employee deaths due to work-related health issues and there are 7 recordable workplace injuries with
both the lost-time accidents and severe accidents were zero. In the future the Company will continuously strengthen the
implementation of various OHS management measures and increase incentives and combination of rewards and punishments to
promote the continuous improvement of health and safety work.Cases
OHS Measures for Global Parks and Plants
Topband implements strict OHS management measures at its global bases demonstrating its high regard for employee health and
safety and its determination to implement unified and standard management on a global basis. Through the coordination and
cooperation among regions the Company effectively responds to OHS risks and ensures the health and safety of all employees.Shenzhen Park
A comprehensive OHS management system has been established and the Management System for Occupational Health in
Workplaces the Management System for the Investigation and Management of Safety Hazards the Management System for Personal
Protective Equipment and the Control Procedure for the Identification of Dangerous Sources and Risk Evaluation developed and
implemented. In response to the identified VOCs Shenzhen Park actively promoted the Microelectronics Workshop Exhaust Control
and Improvement Program. Specific measures include collecting the exhaust and reducing fugitive emissions regularly issuing labor
protection supplies and conducting regular spot checks on equipment thus protect the employees. In addition the Park strengthens the
safety awareness of the employees by regular OHS training and fire safety training. By 2023 the Park organized seven OHS risk
training sessions and fire emergency drills covering about 2000 people.Huizhou Park
The Work Safety Hazard Investigation and Assessment Mechanism was established which fully mobilizes the employees'
motivation and raises their safety awareness and participation through monthly safety inspections quarterly assessment and reward
and punishment mechanisms. At the same time the Company has developed the Dual Prevention Mechanism of Graded Safety Risk
Control and Hazard Identification and Management. Safety risks in the production are graded as red orange yellow or blue ensuring
the systematic and comprehensive risk management and raising the risk awareness of the employees. In 2023 Huizhou Park organized
nine OHS training sessions.
50Topband ESG & Social Responsibility Report 2023
Topband Vietnam Base
The Base successfully passed the ISO45001 Occupational Health and Safety Management System certification in 2022 further
standardizing its OHS management procedure. The Base ensures extensive employee participation in the system and policy
establishment process and provides safety training to all new employees.1200 employees at the Base participated in safety training in
2023.
Topband Mexico Base
The Base inherits and implements the management systems of the Headquarters to ensure the consistency and continuity of OHS
risk management. Meanwhile the Base ensures the accurate identification and effective management of risks by selecting employee
representatives (about 5% of the total employees) to participate in the construction of the management system. Meanwhile
comprehensive safety training was provided for new employees covering fire and fire safety operational precautions for each position
and routine precautions. No major safety accidents occurred at the Base in 2023.Employee development and diversity
Topband adheres to the corporate spirit of "taking a long view and growing together" follows the employment philosophy of
"respect inclusion openness equality competition and selection of the best". It is committed to growing with the staff and achieving
win-win outcomes with the customers.Topband HR management philosophy Topband employment philosophy
Provide opportunities for insiders: Employ people who agree with the
Priority to internal promotions and Company's values and emphasize the growth
organizational changes for new growth potential of candidates;
opportunities; Boldly employ "the young" (in age and
thinking/psychology (learning ability));
Qualification and performance management Pay more attention to ability than to working
promotion: age;
Qualifications for ability improvement and Tap into the true value needs of employees
performance appraisal for goal achievement; and provide platforms and opportunities;
Value professional talents and be able to
Value co-creating and value sharing: accommodate individuals with different
Achieve a win-win situation for both the personalities and abilities that are stronger
Company and individuals. than you.Topband adheres to the core values of "respect and inclusion" firmly opposes any form of discrimination and harassment and is
committed to promoting diversity and building a positive corporate culture. The Company has formulated the Anti-Discrimination
Management Procedure which explicitly prohibits any employment discrimination based on ethnicity color age gender sexual
orientation race disability religion political affiliation membership nationality marital status or gender identity ensuring that all
employment activities such as hiring promotion rewarding training assignment compensation benefits disciplinary actions and
termination of employment relations are fair and impartial and that employees are treated fairly in the workplace.To enhance employees' understanding of the importance of diversity and anti-discrimination Topband conducts regular employee
training and policy publicity. The Company also organizes a variety of localized employee activities based on the cultural and legal
environments of each location spreading the concept of diversity and creating an open and inclusive work environment. In addition
the Company has set up a comprehensive complaint and grievance mechanism encouraging internal and external personnel to report
any discriminatory behavior through the HR Department or the Company's suggestion box and ensuring that the problems are resolved
in a timely manner. The Human Resources Department is responsible for investigating all reported situations. It shall take immediate
corrective actions in case of any violations or preventive measures if necessary and assess the effectiveness of relevant measures.Topband attaches importance to supporting minorities and vulnerable groups and has formulated special protection policies to
support these groups. In 2023 the Company had 21 employees from vulnerable groups (such as the disabled).
51Society
Management Regulations on the Protection of Women and Underage Workers of Topband (excerpt)
* All female employees of the Company have the same rights as male employees and have the right to submit comments and
suggestions to the Business Units Audit Department and the leadership via various channels and in forms.* Female employees can participate in the Company's management as male employees and have the same opportunities and rights
as male employees in terms of job promotion training remuneration welfare etc.* Unless otherwise required female employees can be employed for any position.* The factory shall not reduce the remuneration or terminate the labor contract of female employees due to pregnancy childbirth
and lactation.* During the period of pregnancy female employees shall not be arranged engage the labor forbidden during this period; and for
those who are unable to perform the original work their amount of labor shall be reduced or they shall be transferred to other
appropriate positions based on the certificate issued by the hospital.* Employees who have been pregnant for seven months or longer shall not be arranged for night shifts or for additional work hours
outside the normal working days. They shall be arranged to rest for one hour a day and allowed to receive the maternity check
during pregnancy and these hours shall be counted as work hours. If they are engaged in standing operations a stool for rest
shall be provided.* During lactation of female employees all departments shall not arrange for them to perform the work forbidden during lactation
extend their working hours or arrange for them to be on the night shift.* Female employees during lactation have two lactation periods for 30 min each time during each shift.Topband understands the importance of talent development. It has established a systematic career development path and
promotion management framework and formulated relevant policies such as the Post Qualification Management System and the
Position Title and Competency Level System. The Company has implemented a new post qualification system since 2020 and has
certified the post qualifications of eligible employees so that they can have a clear direction of career development and identify their
space for promotion. As of the end of the Reporting Period the Company had completed the post qualification standards for 40
positions and verified more than 1000 employees. In 2023 based on the post qualification system the Company built 9 position
learning maps for R&D manufacturing QC and other fields and provided 29 learning map courses to help employees improve their
professional abilities with 646 participants involved and a learning rate of nearly 50%.In addition with the Individual Development
Plan (IDP) program the Company customizes development plans for key talents and conducts monthly/quarterly review. It also
provides career planning lectures and consulting to help employees make and optimize their personal career plans. For associate
trainees at different levels the Company has formulated corresponding training programs providing activities such as course-based
training case practice management development and coaching by internal intermediate and senior tutors. In 2023 the Company
organized the Shenzhen Xinyan Training Sessions 3 4 and 5 with 120 employees trained and more than 60 selected as associate
trainees.To promote internal mobility Topband has specified the career development channels in the position qualification model and
encourages employees to actively explore suitable career paths based on their individual capabilities and aspirations. The Company
conducts annual talent check for all functional department employees and leaders assesses their abilities and potentials and
implements adjustment and rotation to improve the enthusiasm and initiative of employees and promote healthy competition and
sustainable development within the Company. In 2023 the talent check realized 100% coverage of all the staff and leaders.
52Topband ESG & Social Responsibility Report 2023
To better motivate the employees Topband has constructed a complete employee incentive system including short-term and
long-term incentive programs so as to promote their personal and professional development. The Company adopts a compensation
broadbanding system based on post qualifications to ensure that the employees' salaries and salary increases are closely related to their
individual capabilities and contributions. In addition the Company has formulated performance incentive programs for different types
of positions that match the respective core value creation to ensure that all employees are fairly evaluated and rewarded. For example
the performance of a business unit president is linked to the net profit growth of the business unit under his/her responsibility; the
performance of a salesperson is related to the revenue generated the growth of gross profit margin and his/her commercial
management skills; and the performance bonuses of supply chain manufacturing and QC personnel are mainly derived from cost
reduction effects. With respect to long-term incentives Topband has implemented the equity incentive plan regularly (every three
years) and each plan is divided into three years for exercising or unlocking so as to promote the consistency between the rights and
interests of employees and the interests of the Company. In 2021 the Company granted 33951000 shares of restricted stock to 1246
eligible incentive recipients. In 2023 the conditions for lifting the restricted stock restrictions in the first assessment period of the
Restricted Stock Incentive Plan were met and the 9351936 shares of restricted stock held by 1109 incentive recipients were eligible
for lifting the restricted stock restrictions and available for sale. The relevant staff of the Company handled the lifting of restricted
stock restrictions for the above incentive recipients.At the same time Topband attaches importance to employee training and development and has launched a comprehensive and
efficient training system. Specifically the Company has formulated the External Training Management System the Management
Measures for Internal Part-time Trainer the Tutor Management System the Company's Policy to Encourage the Improvement of
English Skills and other systems; the departments set up annual training goals and plans provide employees with skill training safety
training corporate culture human rights policies mental health and others and create academic upgrading training programs for those
employees who need them accommodating the diverse learning needs of employees. The Company supports employees to participate
in training through online and offline methods so that each employee can receive efficient learning that is suitable for him/her
promoting the common growth of individuals and the organization. In 2023 all employees received vocational or skill-related training.The trainings including the R&D Special Skill Training HRBP Training Camp Sourcing
The Company mainly provides
Training Camp Buyer Training Camp Project Procurement Engineer Training Camp Internal
corresponding skill training for
Trainer Training Camp Tutor Training Camp and AR\SR Ability Improvement Training
professional post personnel.Camp have covered 1294 persons-time with the course duration of about 160 h.Management skill training 3 sessions of management skill improvement training camp for about 80 h
Skill training conducted within Nearly 499 sessions for about 805 h
each department
Including employee orientation training rookie training on-the-job training job transfer
Employee skill training
training and special post skill training with average training hours of employees of 20 h
Including language learning technical training and online learning. In 2023 there were about
Special internationalization 140 participants in the language enhancement camps (English and Japanese) and the hours of
training offline technical training overseas reached 240 h with 32 h of online courses overseas
provided with the domestic resources.Training-related data▼
Employee training persons-time Person-time More than 20000
Investment in employee training RMB Approx. 2000000
Total employee training hours h Approx. 140000
Average employee training hours h/employee 13
Average training hours for female employees h/employee 12
Average training hours for male employees h/employee 14.5
Average training hours for professionals h/employee 14
Average training hours for managers h/employee 9
53Society
Employee care and communication
Topband has established five employee care programs: "Topband Ease" "Topband Growth" "Topband Happiness" "Topband
Love" and "Topband Housing" providing employees with full-scenario care and concern at different stages of development and thus
reducing their worries.Relaxing
Holiday Dining room/tea room/afternoon
Red packet for kick-off/Statutory tea/gym/dance studio/associations/annual
holidays/holiday gifts/birthday gifts vacation/tourism vacation/tourism allowance
Entry Married
Entry gift/training and learning/tutoring/commuter Marriage leave
bus/free accommodation/fair-price canteen/Shenzhen
household registration
Activities Housing
Team building/cultural and sports activities/festival Housing provident
activities/association activities/New Year's party fund/government-subsidized rental
housing for talents/group housing
purchase/interest-free housing loans
Full scene
Employee welfare
system
Retirement Charging
Endowment insurance/memorial gifts Internal training/external
training/scholarships for academic
upgrading/EAP psychological
counseling
Insurance
Unemployment insurance/employment injury
insurance/critical illness insurance
Overseas activities
Overseas subsidies/free
Accident accommodation/home
Bereavement leave/EAP leave/personal accident
insurance and family visit
subsidies
Expecting a baby
Maternity leave/paternity leave/maternity
insurance/amusement parks for kids/parent-child summer Illness
camps Medical insurance/physical
examination/paid sick leave/love fund
54Topband ESG & Social Responsibility Report 2023
"Topband" Ease Plan "Topband" Growth Plan
* Social insurance and housing fund: endowment
* Internal cultivation: Different cultivation programs
insurance medical insurance maternity insurance and management modules are set up for different
employment injury insurance unemployment stages of career including newcomer management
insurance and housing fund. (newcomers) professional skill cultivation (R&D
* Statutory holidays: annual leave marriage leave sales supply chain...) leader management.maternity leave/paternity leave sick leave funeral
* External learning: For those in need of external
leave etc. training all or part of the training expenses can be
* Supplementary leave: paid travel leave. reimbursed.* Daily welfare: free shuttle free dormitory cheap
* Scholarship for education promotion: Encourage
canteen welfare shop afternoon tea birthday cards internal personnel in continuous education promotion
and holiday gifts. and give scholarships to those realize education
* Overseas benefits: overseas subsidies home leave promotion.personal accident insurance and family visit subsidies.* Internal teaching reward: Build a complete internal
training course system and an excellent lecturer team
and give corresponding rewards to lecturers engaged
in development and teaching of courses.* Talent recommendation reward: Encourage on-the-job
"Topband" Happiness Plan employees and external personnel to introduce all
* Interest associations: At present all bases have more kinds of talents to the Company and reward them
than 20 interest associations. Rich activities can be upon recommendation.implemented for relax.* Employee activities: Monthly organize colorful
cultural activities including fun sports game fitness
and weight loss activities skill competition sports
carnival summer parent-child summer camp singing
contest e-sports competition engineer's day New "Topband" Love Plan
Year party etc.* Periodic physical examination: Annually organize all
* Festival activities: including guessing lantern riddles
employees to take physical examination to help
at the Lantern Festival making Zongzi at the Dragon
employees to better manage their physical health.Boat Festival garden party at the Mid-Autumn
* Psychological care for EAP employees: Full-time
Festival annual meeting at the Spring Festival etc.psychological counselors are assigned to provide free
* Annual tourism/group construction: Tourism funds
psychological counseling services for formal
and group construction funds are provided.employees and their immediate family (parents
* Recreational facilities: Free gym dance room and
children and spouses) thus promoting physical and
children's amusement park are provided for
psychological health and improve happiness.employees and activity venues such as basketball
* Employee experience care: An employee experience
court badminton court ping pong room and billiard
platform is set up so that employees can put forward
room are available.suggestions and ideas and explore new demand for
improvement of software and hardware.* Love fund: When employees or their immediate
"Topband" Housing Plan family encounter serious diseases accidents
emergencies etc. they can apply for the Company's
* Public rental housing for talents: The Company can
love fund to help over the difficulties.provide government-subsidized rental housing for
talents in Shenzhen for employees.* Hukou transfer: The Shenzhen Headquarter can
provide hukou transfer and registration services for
the employees who are eligible for transferring their
hukou to Shenzhen.
55Society
Cases
Mutual Aid - Love Fund Policy
To strengthen the cohesion and the sense of belonging of the employees the Company has established a love fund policy since its
listing and formulated the Management Measures for Employee Love Fund aiming at offering a certain percentage of financial
assistance to the serving employees in case of health emergencies critical illnesses or accidents to help them overcome the temporary
difficulties.The Love Fund is subject to complete management approval and supervision procedures and follows the principles of "public
welfare" and "mutual aid". The application scope of the Love Fund is specified and the account and fund of the Fund are managed by
the special personnel. In 2023 the Company paid out a total of about RMB 400000 to the Love Fund accounting for 41.90% of the
revenue of the Love Fund in the same year. The funds are used to alleviate the temporary economic difficulties of employees who are
affected by illnesses disasters force majeure and other circumstances.Employee Assistance Program (EAP)
The Company established the EAP Center in 2018 and has gradually improved the EAP system in terms of the programs system
development process design care plan and measure implementation. EAP covers employees and their immediate family members
aiming at helping them reduce emotional stress in work and life and maintain a positive mindset and enhancing their sense of
well-being.In 2023 the EAP Center received a total of 349 employees and 43 immediate family members (parents children and spouses) of
employees for psychological counseling. In addition 194 psychological trainings were organized effectively implementing the
Company's care of the employees and reducing their psychological risks.
56Topband ESG & Social Responsibility Report 2023
Topband has built a diversified system of corporate culture activities including five major types: cultural management incentive
ceremonies employer branding sports and leisure and holiday benefits. In 2023 the Company launched a series of diversified welfare
activities to provide employees with rich cultural experiences throughout the year.Cultural activity system
Cultural management Incentive ceremony Employer brand Recreation and sports
Holiday welfare activities
activities activities activities activities
Activities for reduced cost Top cultural activities: The online recruitment Annual travel arrangements Lantern Festival activities
and higher efficiency birthday party outdoor livestreaming "Career" for for employees International Women's Day
development forums You organized by CCTV Weight loss flag campaigns Mother's Day
News & Boss Direct Parent-child family days Double Seventh Festival
Recruitment Fun games party
Sports carnival New Year party
Science and technology Singing contest
competition "Cell Dream Table games and
Sailing" Summer training competitions
activities for college
students Farewell parties for
retired employees
57Society
Participating in Social Activities for Public Good
School-enterprise cooperation
All along Topband has been actively exploring the in-depth cooperation with colleges and universities paying great importance
to the development of education and talent cultivation and taking the initiative to assume its social responsibility. From 2021 Topband
and Huizhou University started their cooperation strategy by establishing teaching practice bases aiming at cultivating composite
talents in line with the needs of social development. In the cooperation Topband funded a "Yanxing Wujiang" special scholarship to
promote the overall development of students and sponsored academic competitions and cultural and sports activities to encourage
innovations and technology practices. In 2023 Topband hosted students and faculty from the School Electronic Information and
Electrical Engineering of Huizhou University for the first time and organized seminars and interviews to introduce the Company's
culture and career opportunities to the students. From 2022 to 2023 Topband's "Yanxing Wujiang" scholarship program provided
scholarship support to 30 students from the School of Electronic Information and Electrical Engineering of Huizhou University
inspiring them to pursue excellence.Students from School of Electronic Information and Electrical Topband "Yanxing Wujiang" Scholarship Award Ceremony
Engineering of Huizhou University visited Topband
In 2023 Topband further explored university-enterprise cooperation and expanded the scope of cooperation. Specifically it set up
the Topband "Yanxing Wujiang" Scholarship in Sichuan International Studies University to inspire students to strive diligently in
academics scientific and technological innovation campus culture culture arts and sports associations volunteer services and other
aspects. In 2023 Topband awarded 36 students from Sichuan International Studies University with scholarships amounting to RMB
56000.
58Topband ESG & Social Responsibility Report 2023
Public welfare activities
Adhering to the spirit of "gratitude dedication mutual aid and improvement" Topband actively undertakes its social
responsibility and organizes the Company's volunteers and community volunteers to carry out a series of public welfare activities in
the neighboring communities building a good relationship with the local community. In 2023 the Party Committee of the Company
and the Volunteer Association jointly organized 15 activities involving 158 participants including environmental protection caring for
children with special needs poverty alleviation and care for the elderly. In terms of charitable donations Topband donated RMB
200000 to the Charity Federation of HZZK Hi-tech Industrial Development Zone on September 4 2023 for the education assistance
project in Dongjiang Hi-tech Industrial Park.To encourage employees to support community welfare Topband has implemented a volunteer incentive mechanism in the
Company whereby employees can earn credit points by participating in volunteer activities. The point system is closely linked to the
welfare system provided by the Company and the accumulated credit points can be converted into employee benefits.Looking ahead Topband will continue to carry out more public welfare and caring and rural support activities fulfill its social
responsibility care for the community and contribute to rural revitalization.Outdoor environmental
Community Caring protection campaign
? Care children in need ? Yangtai Mountain environmental
? Visit children in need protection campaign
? Shiyan Lake environmental
protection campaign
Park Services
Joint Campaigns
? Psychological garden party
? "Fun Fair" volunteer campaign
? Singing contest
? Participation in "Youth Cup"
? 2023 Parent-Child Family Activity
cross country race
? BMW volunteer campaign
59Governance
治理
GOVERNANCE
Perfect corporate governance reliable processes and sound
management practices are the "cornerstones" of sustainable
development. Since its listing Topband has continuously
strengthened its corporate governance developed a solid corporate
governance structure and a governance system covering the Board
of Directors Board of Supervisors and General Meeting of
Shareholders and built a set of efficient transparent and fair
decision-making and supervision mechanism to protect
shareholders' rights and interests in various ways providing a key
support for the stable growth of the Company. In addition
Topband has also continuously strengthened the organizational
Decent work Peace Justice process transformation and the construction of compliance
and economic and Strong
growth Institutions management system risk management system and information
security protection mechanism to avoid and prevent operation
risks and ensure the steady development of enterprises.
60Topband ESG & Social Responsibility Report 2023
Strengthening Corporate Governance
Governance structure
The Company has established a modern corporate governance mechanism in accordance with the current laws and regulations and
relevant provisions. It has set up the General Meeting of Shareholders the Board of Directors and its specialized subordinate
committees and the Board of Supervisors and developed the corresponding rules of procedure and work management systems.Effective system guarantee is the basis for the smooth internal operation of the Company. In 2023 to further improve the
Company's corporate governance structure and management level the Company sorted its internal governance rules and systems in
accordance with the current Company Law of the People's Republic of China the Securities Law of the People's Republic of China
the Code of Governance for Listed Companies the Stock Listing Rules of Shenzhen Stock Exchange the Self-regulatory Guidelines
for the Companies Listed on the Shenzhen Stock Exchange No. 1 - Standardized Operation of the Companies Listed on the Main
Board and other laws regulations and normative documents and the latest revisions and updates thereof. In light of its actual situation
the Company also amended 22 systems including the Rules of Procedure for the General Meeting of Shareholders and certain
provisions of the Articles of Association. Meanwhile to comply with the requirements of the regulatory authorities for the system of
independent directors the Company has developed the Working System for Special Meetings of Independent Directors to guarantee
the performance of duties by the independent directors.General Meeting of
Shareholders
Strategy Committee
Board of Supervisors
Nomination Committee
Salary and Assessment
Board of Directors Secretary of the Board of
Committee Directors
Audit Committee
Special Meeting of
Independent Directors
President
General Meeting of Shareholders
As the highest authority of the Company the General Meeting of Shareholders makes decisions on the Company's business policies and
investment plans and considers and approves the reports of the Board of Directors in accordance with the law. In 2023 the General Meeting of
Shareholders considered many matters including the election of the Company's Board of Directors and Board of Supervisors the repurchase and
cancellation of restricted shares and a number of system revisions. The Company convenes general meetings in strict accordance with the Company
Law of the People's Republic of China the Securities Law of the People's Republic of China the Rules of Procedure for the General Meeting of
Shareholders and other relevant regulations. Shareholders can participate in the meeting online of offline supporting small and medium-sized
shareholders in exercising their right to vote. In the process of considering each proposal all shareholders are treated on an equal footing and the votes
are counted separately for matters affecting the interests of small and medium-sized shareholders. A dedicated forum for the attending shareholders and
the Company's directors supervisors and senior executives is arranged facilitating and fully safeguarding the shareholders in exercising their general
rights and interests and the right of speech.
61Governance
Board of Directors
The Board of Directors operates in accordance with the Self-regulatory Guidelines for the Companies Listed on the Shenzhen Stock Exchange No.
1 - Standardized Operation of the Companies Listed on the Main Board and the Rules of Procedure for the Board of Directors. Its main duties include
convening the general meetings executing the resolutions of the General Meeting of Shareholders and managing the information disclosure in the
Company. Under the Board of Directors there are Strategy Committee Audit Committee Salary and Assessment Committee and Nomination
Committee each of which performs its duties in strict accordance with the relevant laws and regulations and rules of procedure providing
complementary information for the scientific decision-making by the Board of Directors.In September 2023 the 7th Board of Directors of the Company expired and the number of members of the Board of Directors was adjusted from
nine to seven as considered at the 37th Meeting of the 7th Board of Directors. The new Board of Directors consists of three independent directors and
four non-independent directors.The Board of Directors focuses on the selection process and ability matching of the members of the management team. More than half of the
directors have over 20 years of experience in intelligent controllers and in research or management so they can better grasp the direction of strategic
development at the decision-making level in many fields especially the electronic controls motors power sources batteries IoT and other
technologies used in home appliances tools new energy and industrial control. For member composition two of the four non-independent directors
are employee representatives; all the three independent directors are independent of the actual controller controlling shareholders and other related
parties of the Company and are experts in finance strategy and investment respectively so that they can supervise or decide major matters of the
Company in the relevant fields to effectively enhance the corporate governance.Board of Supervisors
The Board of Supervisors mainly reviews and provides written audit opinions on the Company's periodic reports the use of raised funds
related-party transactions and equity incentive matters and supervises the directors and senior executives in fulfilling their duties in the Company. The
Board of Supervisors is composed of three supervisors. In 2023 after consideration by the General Meeting of Shareholders and the Congress of
Workers and Staff the members of the 8th Board of Supervisors were re-elected with one employee representative elected as a new member.Congress of Workers and Staff
The Congress of Workers and Staff is an important way for employees to participate in the Company's operation and management in a democratic
manner. In September 2023 the Congress of Workers and Staff of the Company was held with two staff representative directors and one staff
representative supervisor elected. These members together with the non-staff representative directors and non-staff representative supervisors elected by
the General Meeting of Shareholders constituted the 8th Board of Directors and the Board of Supervisors of the Company.Special Meeting of Independent Directors
In 2023 in conjunction with the Management Measures for Independent Directors of Listed Companies issued by the CSRC the Self-regulatory
Guidelines for the Companies Listed on the Shenzhen Stock Exchange No. 1 - Standardized Operation of the Companies Listed on the Main Board and
other provisions the Company added the Special Meeting of Independent Directors on the basis of the existing specialized committees including
Strategy Committee Nomination Committee Salary and Assessment Committee and Audit Committee enabling independent directors to perform their
duties under the supervision of the mechanism. The Special Meeting of Independent Directors is composed of independent directors. It operates as a
pre-deliberation procedure to review matters such as related-party transactions and changes in commitments consolidating the authority of independent
directors in performing their duties.In 2023 4 meetings of the General Meeting of Shareholders 11 meetings of the Board of Directors 7 meetings of the Board of Supervisors 1
meeting of the Nomination Committee 4 meetings of the Audit Committee and 2 meetings of the Salary and Assessment Committee were held in the
Company. Each meeting was held in strict accordance with the meeting system to ensure that the Company's major decisions were compliant feasible
and effective. In particular approximately 100 proposal and reports were deliberated considered reviewed or heard.In terms of prevention and reduction of conflicts of interest the Company has formulated a series of targeted management mechanisms to
comprehensively reduce the risks of various conflicts of interest through clear responsibilities and transparent rights and interests.
62Topband ESG & Social Responsibility Report 2023
Clear responsibilities Transparent rights and interests
(1) Responsibilities of senior executives: After (1) Shareholders' responsibilities and prevention of
consideration by the Board of Directors and the General conflict of interest: The Articles of Association and the
Meeting of Shareholders the Company specified the rules of procedures of the General Meeting of
senior executives and their responsibilities in the Articles Shareholders and the Board of Directors are strictly
of Association and all of them must sign a Non-Compete enforced and the principle of equality among shareholders
Agreement. is followed.
(2) Responsibilities of controlling shareholders: The (2) Open and transparent information disclosure
basic obligations of controlling shareholders are stated in system.the Articles of Association such as the obligation to (3) Supervision of management personnel by the
disclose information on the increase or decrease in the General Meeting of Shareholders the Boarder of
holding of the Company's shares as well as the Supervisors and independent directors.information on the counter-guarantees provided by the (4) The right of shareholders to request the convening
controlling shareholders when the Company's assets are of an Extraordinary General Meeting of Shareholders and
used as guarantees of the controlling shareholders. the right to vote by proxy.
(3) Exclusion of voting rights: The recusal and voting (5) The right of independent directors to solicit
procedures for shareholders and directors in relation to voting rights.related-party transactions are stated in the Company's
Articles of Association.
(4) Related-party transaction management:
Related-party Transaction Management System has been
formulated and related information of related-party
transactions has been regularly disclosed in regular
reports.
(5) Responsibilities of employees: Non-compete
agreements are signed with employees to bind and
regulate them in respect of business investment etc.; and
a system for recusal of relatives and cross-business or
cross-departmental recommendation is in place.The Company adheres to the principle of work-based distribution and the combination of responsibilities rights and benefits and
has formulated the Remuneration Management System for Directors Supervisors and Senior Executives. The remunerations of the
directors supervisors and senior executives are closely linked with the Company's profit their performance objectives and work ability
with full consideration of the market environment and industry factors to strengthen incentives and constraints. The directors
supervisors and senior executives serving in the Company receive remunerations based on an annual salary system with a fixed
portion of the annual salary being paid out each month known as the base annual salary. The base annual salary is determined based
on the grade level of responsibility and ability. The portion beyond the base annual salary is called the operating annual salary which
is equal to the total annual salary minus the base annual salary. The amount of this portion is determined based on the assessment
result after the end of each fiscal year reviewed by the Salary and Assessment Committee and confirmed by the Board of Directors or
the General Meeting of Shareholders.The work allowance for independent directors is determined in accordance with the plan proposed by the Board of Directors and
approved by the General Meeting of Shareholders. The fees incurred by independent directors for attending the meetings of the Board
of Directors and the meetings of the General Meeting of Shareholders and for performing other duties shall be borne by the Company
in accordance with the relevant provisions of the Company Law of the People's Republic of China and the Articles of Association.Related data of annual total remuneration ratio▼
The ratio of the annual total remuneration of the highest-earning individual to the annual total remuneration median of all employees in the
Company is 16.53.The ratio of the growth rate of the annual total remuneration of the highest-earning individual to the growth rate median of the annual total
remuneration of all employees in the Company is 1.22.
63Governance
Shareholder's equity
Regard returns to shareholders as important
Topband attaches importance to appropriate investment returns to investors. As per the Notice on Matters Relating to the Further Implementation
of Cash Dividend Distribution of Listed Companies the No. 3 Guideline for the Supervision of Listed Companies - Cash Dividend Distribution of
Listed Companies the Articles of Association and other provisions the Company has formulated the Plan for Dividend Distribution to Shareholders for
the Next Three Years (2023-2025) which takes into account the Company's sustainable development and returns to the shareholders. The Company has
maintained a continuous and stable profit distribution policy since its listing with particular emphasis on continuous and stable cash dividends to
actively reward the shareholders.In April 2023 the Company rewarded investors through cash dividends and other means. Specifically with the 1264354172 shares (the total
share capital on the registration date minus the amount of shares on the buyback account) as the base the Company paid a cash dividend of RMB 0.6
(tax inclusive) for each 10 shares to all shareholders totaling RMB 75861250.32 for the year 2022 and implemented and completed the distribution
program in May 2023.In 2024 the Company will continue to divide dividends to the shareholders still registered on the registration date for the year 2023 in accordance
with the above policy.Equity Distribution 2020-2022▼
2020 2021 2022 Total
Cash dividends (tax inclusive) 56133314.67 62071871.76 75405278.83 193610465.26
Net profit attributable to shareholders of listed companies in 532161123.64 564964282.18 582655258.38 1679780664.20
the consolidated statement in the year of dividend distribution
Percentage of cash dividends in the consolidated net profit 10.55% 10.99% 12.94% 11.53%
attributable to the parent company in the year of dividend
distribution
Amount of repurchases 20004351.75 0 52434493.65 72438845.40
Percentage of repurchases in the consolidated net profit 3.76% 0 9.00% 4.31%
attributable to the parent company in the year of dividend
distribution
Total cash dividends (including repurchase forms) 76137666.42 62071871.76 127839772.48 266049310.66
Percentage of total cash dividends (including repurchase) in 14.31% 10.99% 21.94% 15.84%
the consolidated net profit attributable to the parent company
in the year of dividend distribution
The "Net profit attributable to shareholders of listed companies in the consolidated statement in the year of dividend distribution" for 2020 is the
retroactively adjusted data presented in the annual report 2021.In October 2023 the Company issued the Repurchase Report the fourth repurchase after those in 2018 2020 and 2022. Based on the confidence
in future development prospects and recognition of the Company's value as well as the Company's long-term sustainable development the Company
decided to use its own funds of RMB 40 - 60 million to repurchase some of the Company's shares by means of centralized bidding transaction and the
repurchased shares will all be used for equity incentives in the future. As at the end of 2023 the Company has completed the repurchase of RMB 59.97
million with an average price of the transaction of RMB 9.57.Repurchases Since Listing▼
Date of Repurchase Number of shares repurchased (shares) Amount (RMB)
2023626660059969998.65
2022518120052434493.65
2020358060020004351.75
20191023832055898336.38
201810200004101632.50
Total 26286720 192408812.93
64Topband ESG & Social Responsibility Report 2023
Since its listing in 2007 the Company has pay cash dividends (including FY2023) of RMB 679 million in total and repurchased 26286700
shares amounting to RMB 192 million.For FY2023 the Company proposes to distribute a cash dividend of RMB 0.6 per 10 shares (tax inclusive) to all shareholders based on the total
share capital (1229476988 shares excluding the restricted shares repurchased and canceled and treasury shares repurchased) which is subject to the
approval at the Company's 2023 Annual General Meeting of Shareholders. If the Company's total share capital changes before the implementation of
the profit distribution plan due to share repurchase cancellation of restricted shares or other reasons the total distribution amount will be adjusted
accordingly based on the principle of maintaining the same distribution ratio per share.Timely disclosure of information
To protect the legitimate rights and interests of investors the Company continuously strengthens the management of information disclosure.Specifically the Company fulfills its information disclosure obligations in a timely manner in accordance with the Company Law of the People's
Republic of China (hereinafter referred to as the Company Law) the Securities Law of the People's Republic of China (hereinafter referred to as the
Securities Law) and other laws and administrative regulations. The disclosure contents are true accurate complete concise clear and easy to
understand so that investors can fully and timely understand the Company's operation and business development and major events providing key
information for investors' decision-making and strengthening investors' supervision and management of the Company.The Company regularly discloses in the form of announcements the cross appointments of the directors cross-shareholdings with suppliers and
other stakeholders shareholdings of controlling shareholders and annual routine related-party transactions and grants shareholders the right to inspect
and copy the Company's Articles of Incorporation minutes of the General Meeting of Shareholders' meetings resolutions of the Board of Directors'
meetings resolutions of Board of Supervisors' meetings and financial reports ensure that the Company's information is transparent to the shareholders.Smooth communication channels
The Company communicates with investors through a variety of means and forms including the Company's official website the China Investor
Network the website of the Shenzhen Stock Exchange and the investor interactive platform of Shenzhen Stock Exchange securities registration and
settlement organizations and other network platforms as well as new media platforms investor hotlines faxes and mailboxes as the means and the
General Meeting of Shareholders' meetings investor presentations roadshows investor surveys and securities analyst surveys as the forms.While doing well in timely information disclosure Topband also actively keeps the communication channels for investors smooth especially for
the information in relation to conflict of interest where an interpretation meeting is generally convened in time to reply to investors and good business
advice from investors is transferred to the management to promote the Company's high-quality development. In 2023 Topband held four regular
reporting teleconferences to fully respond to investor concerns and timely disclosed the content communicated to share information with the investors.In addition Topband from time to time organized a series of activities themed "Investors visit the listed company" performance briefing online
reception of investors in Shenzhen area and other activities. More frequent on-site visits and online communication enabled the investors to have better
understanding of the industry in which the Company is engaged in the industrial developments and the Company's competitive advantages making the
interests of shareholders and of the Company's management more consistent and increasing the investor confidence.Protect shareholders' rights and interests
In May 2023 the Company promoted the knowledge contest
for investor rights and interests titled Here Come the
Shareholders to further contribute to protecting investor rights
and interests enhancing investors' risk prevention ability and
cultivating rational investment concepts."Here Come the Shareholders" Knowledge Contest
for Investor Rights and Interests
65Governance
Business Risk Control
Compliant operation
Compliance management and the construction of internal control system is essential to maintain stable operation and sustainable
development of a business. Topband has effectively enhanced its management practices by formulating compliance and business
ethics-related systems such as the Code of Business Conduct and Compliance of Topband Group the Corporate Accountability System
the Management Measures for Rewards for Complaints and Reports of Misconducts and Corrupt Practices the Management Measures
for Declaration of Conflicts of Interests and the Internal Control Management System. To adapt to corporate development and the
changes in the external environment the Company updated the Management Measures for Declaration of Conflicts of Interests and the
Code of Business Conduct and Compliance of Topband Group in 2023 further specifying the boundaries of employees' behavior to
improve the internal control system of the Company and to meet the high requirements of customers for compliance governance.On the basis of the Internal Control Management System Topband has established an internal control management system
centered on the HR Department and the Audit Department to enhance the supervision. With regular internal control audits and field
audits Topband effectively identifies and rectifies its management shortcomings and process loopholes and practical suggestions for
improvement are made for internal control improving the overall management quality.In addition to raise the employees' awareness of compliance and risk prevention and control Topband constantly performs
education and publicity campaigns in the internal network the official website the WeChat Official Account of the Audit Department
for anti-fraud purpose and the internal publication Topband Journal and other platforms ensuring that all employees can deeply
understand the importance of compliance management.Cases
Digital Compliance and Efficient Management
To cope with the inefficiency compliance risk and many other problems revealed in the use of traditional contract and document
seals the Company started to build an electronic signing platform in October 2022 and extended it to the suppliers and HR
management scenarios in 2023 realizing the full-scale electronic and paperless handling of contract certificate and statement
documents. This change not only brings multi-party collaboration and convenient processes but also reduces the risk and cost of using
physical seals and improves the efficiency and security of contract management. This marks the progress of Topband's digital
transformation and compliance management.Sustainable Supply Chain Management
Topband has established complete supplier management procedures to ensure procurement compliance. In terms of supplier
development the Company aggregates key information about suppliers in an integrated platform and tracks the status of supplier
development and strictly controls the supplier admission under the premise of adopting consistent supplier review criteria and
ensuring the professional qualifications of the audit team. In addition Topband attaches importance to the strict assessment and audit
of new suppliers and implements differentiated procurement strategies based on the assessment and grading mechanism.
66Topband ESG & Social Responsibility Report 2023
Topband conducts annual and monthly performance assessments on suppliers that have been in cooperation with the Company to
ensure that all aspects of the supply chain are in line with the Company's performance objectives and high-standard quality
management. The Company focuses on the environmental and social responsibility dimensions in the supplier assessment and the
suppliers scored less than 80% of the total score will be rated as disqualified. In addition the Company is firmly committed to
responsible sourcing and has signed the Commitment on not Using Conflict Minerals with the suppliers to consolidate compliance and
ethical standards in the supply chain.In the process of internationalization the Company focuses on building a local supply chain system and promoting the
construction of local industrial chains to reduce the waste of resources in transportation. In 2023 the percentage of local procurement
of the plants in Vietnam India Mexico and Romania reached 25% 19% 15% and 15% respectively. In the future the Company will
further optimize its procurement strategy meet the local supply compliance requirements and establish a multi-region and responsible
supply system.Integrity and anti-corruption
Topband always maintains a zero-tolerance attitude toward corrupt practices. It is committed to maintaining an open and honest
business environment by anti-fraud investigations and punishes the violators. In terms of promoting integrity Topband focuses on
shaping a clean culture centered on anti-bribery and anti-corruption and learns from the compliance concepts in the industry to build
an anti-corruption compliance system that suits its own situation.To clearly define the criteria for integrity Topband has formulated the Anti-bribery Agreement which specifies the acceptance of
gifts commercial hospitality and other forms of benefits and requires resolutely resisting the acquisition of improper benefits. Before
signing contracts with external partners Topband also require them to sign a Commitment to Integrity and the Anti-bribery Agreement
to ensure that they value the same concept of integrity achieving a complete chain of integrity management from the source to the end.In terms of anti-fraud reporting mechanism Topband encourages employees to report suspicious acts and set up a reporting
channel based on the Management Measures for Complaint and Reporting of Misconducts and Corrupt Practices allowing anonymous
reporting to protect the whistleblower. The Company conducts a thorough investigation of each corrupt practice reported and keeps
the information of the whistleblower confidential as per the Measures for Protection of the Whistleblower. There are also rewards for
substantiated reports. For violations the Company takes different disciplinary measures based on the severity such as credit score
deduction disciplinary warning demerit recording dismissal or the transfer to judicial organs for investigation.Topband actively sorts out and shares lessons learned from past experiences and provides employees with targeted seminars
centered on actual challenges encountered. In 2023 the Company provided the course Integrity Risks and Their Prevention and
Control in March and organized the training titled Business Risks of the Company and Their Control to the subsidiaries in Vietnam in
May spreading the value of integrity and strengthening the employees' sense of integrity. In addition the Company arranges anti-fraud
and integrity culture training for new employees every year to ensure that they establish correct concepts of integrity and compliance.
67Governance
Information security protection
In the digital era the importance of information security to businesses is self-evident. For this reason Topband has set up a
professional management team for trade secret and information security coordinated by the Trade Secret Protection Committee built
by the Trade Secret Security Department and implemented by the Trade Secret Officer forming a three-tier information security
management structure to ensure the effective implementation of the security strategy in routine operations.Information Security Management Structure
Trade Secret Protection
Committee
IT Department Trade Secret Audit Department
Department
Supervision and
Technology strategy Trade Secret Officer suggestions
Information-based Personnel-based Environment-based
confidentiality confidentiality confidentiality
Attention of the top management supervision by the management independent
customer confidentiality team inclusion in performance assessment
First of all Topband regards the trade secret protection and management as the core part of
the overall corporate strategy and has established a trade secret protection system. It has also set
up a special trade secret protection organization. The Trade Secret Protection Committee plays a
leading and coordinating role in the Company to ensure the implementation of trade secret
management. Meanwhile the Trade Secrets and Data Security Department adopts a strategy that
focuses on both technology and management based on customer needs organizational strategy
and departmental planning aiming to accommodate the needs control the security risks and
continuously optimize the protection of trade secrets. The IT and Audit Departments provide the
necessary technical and audit support. The professional team of more than 20 people including the
Trade Secret Officer and departmental managers cooperates with the Trade Secret Department to
develop specific implementation programs implementing the trade secret protection from
personnel environment and information.Then Topband actively supports the national network security policy and conducts the
research and practical application in information security. The Company has developed the
Management System for Network Information System Security to ensure comprehensive and strict
security management of network information platforms. Combined with the actual business needs
Topband works in security technology management and operation implements an all-round risk
management strategy covering the whole process and builds a complete security operation and
maintenance system including risk assessment defense mechanism emergency response
continued monitoring and response measures. In addition the Company manages the access to
confidential information by class. A special confidentiality table is developed to specify the
classification storage and transmission of information and the approval process is in place to
ensure that non-authorized personnel can only access the information as required. In March 2023
Topband obtained the ISO27001 Compliance certification. This internationally recognized
information security management system standard helps the Company regulate the behavior of
employees and ensure the effective implementation of technical measures thus keeping the
corporate information confidential complete and available and ensuring the stable and continuous
ISO27001 certification
operation of business.
68Topband ESG & Social Responsibility Report 2023
Meanwhile to ensure the continued and effective operation of the information security system Topband carries out an internal
security audit every six months and a comprehensive external audit and assessment every year. The Company has established a
comprehensive internal security monitoring system to conduct regular security vulnerability testing of applications servers network
equipment and user terminals for continuous risk monitoring. In response to possible risks in information security the Company
follows the Management Measures for Information Emergency Response Plans and implements a detailed incident response process.Process of Trade Secret and Information Protection
? Environment-based * Personnel
confidentiality * Duties of confidentiality
* Isolated physical * Confidentiality awareness
environment Process of
* Isolated network
environment Trade Secret
and
Information
Protection
* Customer information ? Assessment &
* Confidentiality of improvement
materials and documents
* Routine confidentiality
* Sample confidentiality statement
* Supervision and assessment
by the Company's
management
* Continuous improvement
Finally while building an internal system the Company also actively cooperates with external parties. In April 2023
Topband participated in the symposium organized by the Shenzhen Municipal People's Procuratorate on the compliant
building of a criminal protection system for trade secrets enhancing connection with judicial institutions and jointly
maintaining a fair competition environment. Meanwhile Topband assesses the information security of partners annually. The
Annual Review of Supplier Information Security is used to control the supplier's compliance and third-party partners are
required to sign a confidentiality agreement.Symposium on Compliant Building of a Criminal Protection System for Trade Secrets
69Governance
Cases
Information Security Culture Development
* Topband actively raises the employees' awareness of information security protection and continuously creates a transparent and
secure working environment by the following measures.* Arrange specialized training on information security and trade secret protection to employees in all departments to raise their
awareness of information security protection. In 2023 the Company conducted 33 specialized trainings involving 800
employees.* Establish diversified channels for reporting information security issues including emails anonymous letters WeChat Official
Account and WeCom. All reports are independently investigated and handled by a security team under strict confidentiality.During the Reporting Period Topband did not experience any information security-related incidents.Data related to information security▼
Information security incidents Piece 0
Percentage of business locations with ISO27000 information security management system certification Percentage 20%
in the total number of business locations
70Topband ESG & Social Responsibility Report 2023
Key Performance Indicators (KPIs)
Environmental issues▼
Indicator Unit 2023 2022
Annual total energy consumption MWh 100971.70 91938.48
Renewable energy power generation MWh 2239.00 460.74
Natural gas m3 215907.00 98235.00
Power consumption MWh 80764.60 90642.64
Outsourced electricity MWh 96573.63 74076.96
Total water consumption m3 516327 340000
Total discharge of pollutants in water MT No wastewater No wastewater
discharged discharged
Total weight of hazardous waste disposed MT 933.45 815.466
Total weight of non-hazardous waste disposed MT 1825.00 402.85
Chemical leakage accident Time 0 0
Disposal of hazardous waste % 100% up to standard 100% up to standard
Up-to-standard noise emissions at the factory boundary % 100% up to standard 100% up to standard
Industrial exhaust emission % 100% up to standard 100% up to standard
Social issues▼
Indicator Unit 2023 2022
R&D headcount Person 2004 1776
Proportion of R&D input Percentage 9.28% 8.11%
Patents obtained (including foreign patents) Piece 351 566
Percentage of employees covered by collective agreements with % 26.30% 29.26%
work terms in all employees of all regions
Percentage of employees who cover the formal election of % 0.32% 0.25%
employee representatives in all employees of all regions
Days of employee maternity leave Day 178 178
Hours of employee breastfeeding leave h/day 1 1
Total number of employees entitled to parental leave by gender Person Male/2348 Male/1882
Female/2424 Female/1923
Total number of employees taking parental leave by gender Person Male/297 Male/167
Female/245 Female/93
Total number of employees who return to work in the Reporting Person Male/271 Male/161
Period after parental leave by gender Female/165 Female/89
Return rate of employees on parental leave by gender % Male/91.25% Male/96.41%
Female/67.35% Female/95.70%
Number of total employees Person 9323 8379
71Key Performance Indicators (KPIs)
Social issues▼
Indicator Unit 2023 2022
Total hours of the Company's training related to human h; % Newcomer training involves Newcomer training involves a
rights policies or procedures and percentage of employees a course on human rights 2 course on human rights 2
covered h/session approximately 24 h/session approximately 24
h/year in total. h/year in total.Covering 100% employees Covering 100% employees
Percentage of workplaces where the Company has % 100% 100%
conducted employee health and security risk assessment
in all workplaces
Percentage of all employees at all locations who are % 100% 100%
represented by a health and safety committee
Percentage of full-time employees who receive medical % 49.91% 80%
checkups
Percentage of employees at key and special posts who % 100% 100%
receive special medical checkups
Number of occupational hazard factor detections Times/year 2 2
conducted in places involving occupational hazards
Maximum consecutive working months for special posts Month 3 3
Number and rate of fatalities due to workplace injuries Person; % 0；0% 0；0%
Number and rate of workplace injuries (excluding Person; % 0；0% 0；0%
fatalities) with severe consequences
Number and rate of recordable workplace injuries Person; % 7；0.08% 0；0%
Number of deaths caused by work-related health issues Person 0 0
Number of recordable cases of work-related health issues Person 0 0
Number of new employees participating in orientation Person-time 9600 More than 6600
training
Percentage of employees participating in orientation % 92.40% 78.77%
training
Achievement rate of safety education for new employees % 100% 100%
Number of employees certified for qualifications Person 1470 More than 700
Number of core key personnel covered by IDP (Individual Person 1260 Approx. 300
Development Plan)
Percentage of employees who have accepted regular % 100% Regular performance 100%
performance and career development assessment in all career development assessment
employees in all regions 20%
Percentage of employees who have accepted relevant % 100% 100%
vocational or skill training in all employees in all regions
Percentage of employees who have accepted diversity % 100% 100%
discrimination or harassment training in all employees in
all regions
Number of participants and hours of skill training for Person; hour 4200 persons-time; approx. 1600 persons-time; approx. 260
professional posts 34400h h
Number of management skills training sessions conducted Session 9 sessions 10 sessions
by the Company
Number of skill training sessions conducted within each Session 499 Approx. 1000 sessions
department
Employee training persons-time Person-time More than 20000 More than 20000
Investment in employee training RMB Approx. 2 million Approx. 2 million
Total employee training hours h Approx. 140000 Approx. 160000
Average employee training hours h 13 15
Average training hours of employees by gender and h The number of average The number of average training
category training hours for female hours for female employees is
employees is about 12 h; about 10 h;
The number of average The number of average training
training hours for male hours for male employees is
employees is about 14.5 h; about 18 h;
The number of average The number of average training
training hours for hours for professionals is about 8
professionals is about 14 h; h;
The number of average The number of average training
training hours for managers hours for managers is about 6 h;
is about 9 h;
72Topband ESG & Social Responsibility Report 2023
Social issues▼
Indicator Unit 2023 2022
Percentage of total employees of workers from ethnic minorities minority % 0.23% 14.04%
groups and vulnerable groups (for example disabled person)
Percentage of female employees in the total number of employees of the % 41.46% 42.27%
Company
Percentage of female holding senior management posts % 15.92% 15%
Percentage of female directors % 0% 11%
Gap of average remuneration both male and female (percentage of average % 76% 77%
total hourly wage of female employees in that of male employees)
Minimum number of weeks that the Company notifies employees and their Week 1 1
representatives in advance before implementing major operational changes
that may have a significant impact on the Company and employees
Total number of employee proposals received by the "Employee Nos. 475 More than 600
Experience Platform"
Number of holding of "employee communication meetings" Time 7 2
Number of employee feedback issues resolved through "employee Person 54 29
communication meetings"
Percentage of target suppliers who have signed the Sustainable Purchase % 100% 100%
Charter/Supplier Code of Conduct
Percentage of suppliers signing contracts that include environment labor % 100% 100%
and human rights requirements
Percentage of target suppliers who have subjected to assessment of % 100% 100%
corporate social responsibility (CSR)
Percentage of target suppliers who have subjected to on-site audit of % Official Official manufacturer
corporate social responsibility (CSR) manufacturer 100% 100%
Percentage of purchasers who have received sustainable purchase training % 100% 100%
in all regions
Proportion of spending on local suppliers % 39.30% 40%
Percentage of new suppliers selected according to environmental standards % 100% official 100% official
suppliers suppliers
Suppliers that have conducted EIA Person 72 110
Number of suppliers identified as having actual and potential significant Person 0 0
negative impact on the environment
Percentage of suppliers identified as having actual and potential significant % 0 0
negative impact on the environment and approved for improvement after
assessment
Percentage of suppliers identified as having actual and potential significant % 0 0
negative impact on the environment and decided to terminate their
relationship after assessment
Percentage of new suppliers selected according to social standards % 100% official 100% official
suppliers suppliers
Number of suppliers identified as having actual and potential significant Person 0 0
negative impact on the society
Percentage of suppliers identified as having actual and potential significant % 0 0
negative impact on the social and approved for improvement after
assessment
Percentage of suppliers identified as having actual and potential significant % 0 0
negative impact on the social and decided to terminate their relationship
after assessment
73Key Performance Indicators (KPIs)
Governance issues▼
Indicator Unit 2023 2022
Reports generated by the whistleblowing program Piece 23 19
Corruption incidents Piece 2 3
Total number of incidents where employees from the Company are Piece 2 3
dismissed or disciplined due to corruption
Total number of incidents where the Company's contracts with Piece 5 3
business partners are terminated or not renewed due to violations
related to corruption
Total number of business locations where the Company has Person 8 2
conducted internal audits/risk assessments on business ethics
issues
Percentage of business locations where the Company has % 80% 25%
conducted internal audits/risk assessments on business ethics
issues in the total business locations
Percentage of the Company's anti-corruption policies and % 100% 100%
procedures communicated to employees
Percentage of the Company's anti-corruption policies and % 100% 100%
procedures communicated to business partners by the Company
Information security incidents Piece 0 0
Ratio of the annual total remuneration of the highest-earning 16.53 18.37
individual to the annual total remuneration median of all
employees
Ratio of the growth rate of the annual total remuneration of the 1.22 -1.22%
highest-earning individual to the growth rate median of the annual
total remuneration of all employees
Number of members of governance bodies who have received Person 7 9
anti-corruption training
Number of members of governance bodies to whom the Person 7 9
Company's anti-corruption policies and procedures have been
communicated.Percentage of the Company's anti-corruption policies and % 100% 100%
procedures communicated to members of governance bodies
74Topband ESG & Social Responsibility Report 2023
Index
Index of the Self-regulatory Guidelines for the Companies Listed on the Shenzhen Stock
Exchange No. 1 - Standardized Operation of the Companies Listed on the Main Board▼
Terms and disclosure contents Report section Page
8.1 Overview Full Text of Report
8.2 Business principles 3.1 Guarantee customer benefits 41-47
4.1 Strengthening corporate governance 61-65
4.2 Control business risks 66-70
8.3 Social responsibility strategic planning and working mechanism 1. Responsibility Management 12-14
8.4 Disclosure of social responsibility report Full Text of Report
8.5 Protection of employee rights and interests 3.2 Stimulation of organizational vitality 48
4.1 Strengthening corporate governance 61-63
8.6: (I) Abiding by the environmental protection laws and regulations 2.2 Deepen green production 26-31
and industry standards
8.6: (II) Environmental protection plan 2.1 Accelerate the development for a 16-18
low-carbon future 24-25
8.6: (III) Use of natural resources 2.1 Accelerate the development for a 16-18
low-carbon future
2.2 Deepen green production 26-35
8.6: (IV) Pollutant disposal 2.2 Deepen green production 27-31
8.6: (V) Pollution prevention and control facilities 2.2 Deepen green production 27-31
8.6: (VI) Payment of taxes and fees related to environmental protection Not involved
8.6: (VII) Environmental safety of supply chain 2.2 Deepen green production 27
8.6: (VIII) Other environmental responsibilities 2.2 Deepen green production 26-35
8.7: (I) Environmental protection policies objectives and effectiveness 2.2 Deepen green production 26-35
8.7: (II) Annual total resource consumption Key Performance Indicators (KPIs) 71
8.7: (III) Environmental investment and environmental technology 2.1 Accelerate the development for a 16-24
development low-carbon future
2.2 Deepen green production 32-34
8.7: (IV) Emission pollutant management 2.2 Deepen green production 29-31
8.7: (V) Construction and operation of environmental protection 2.1 Accelerate the development for a 16-18
facilities low-carbon future
2.2 Deepen green production 26-35
8.7: (VI) Waste disposal and recycling and utilization of reject products 2.2 Deepen green production 27-28、35
8.7: (VII) Voluntary agreement signed with environmental protection 2.2 Deepen green production 32-33
department
8.7: (VIII) Rewards received from environmental protection department Not involved
8.7: (IX) Other voluntary disclosure items 2.1 Accelerate the development for a 19-24
low-carbon future
8.8 Implementation of environmental protection policies and corrective 2.2 Deepen green production 26-31
measures
8.9 Environmental information disclosure Not applicable
8.10: (I) Product safety laws and regulations and industry standards 3.1 Guarantee customer benefits 45-47
8.10: (II) Production environment and process 3.1 Guarantee customer benefits 45-47
8.10: (III) Product quality and safety guarantee mechanism and accident 3.1 Guarantee customer benefits 45-46
emergency plan
8.10: (IV) Other production and product safety responsibilities 3.1 Guarantee customer benefits 45-47
8.11: (I) Employee management system and measures for handling 3.2 Stimulation of organizational vitality 48
violations
8.11: (II) Prevention of occupational hazards and supporting safety 3.2 Stimulation of organizational vitality 49-51
measures
8.11: (III) Employee training 3.2 Stimulation of organizational vitality 52-53
8.11: (IV) Other responsibilities for protecting employee rights 3.2 Stimulation of organizational vitality 54-57
8.12 Scientific ethical norms 2.2 Deepen green production 26-27
3.1 Guarantee customer benefits 43-44
8.13 Content of social responsibility report Full Text of Report
75Index
GRI index▼
GRI standards Disclosure items Report section Page
GRI 2: General Disclosures
1. The organization and its 2-1 Organizational details About the Report 01
reporting practices 2-2 Entities included in organization's sustainability About the Report 01
reports
2-3 Reporting period frequency and contact point About the Report 01
2. Activities and workers 2-6 Activities value chain and other business About Topband 06-10
relationships 3.1 Guarantee customer 38-41
benefits
2-7 Employees About Topband 09
3.2 Stimulation of 48
organizational vitality
Key Performance 71-72
Indicators (KPIs)
3. Governance 2-9 Governance structure and composition 4.1 Strengthening 61-63
corporate governance
2-10 Nomination and selection of the highest 4.1 Strengthening 61-63
governance body corporate governance
2-11 Chair of the highest governance body 4.1 Strengthening 61-62
corporate governance
2-12 Role of the highest governance body in 4.1 Strengthening 61-63
overseeing the management of impacts corporate governance
2-13 Responsibility authorization for management 4.1 Strengthening 61-63
impact corporate governance
2-14 Role of the highest governance body in About the Report 01
sustainability reporting 1.1 ESG governance 12
2-15 Conflict of interest 4.1 Strengthening 61-63
corporate governance
2-16 Communication of important concerns 1.3 Communication with 14
stakeholders
4.1 Strengthening 61-63
corporate governance
2-19 Remuneration policy 4.1 Strengthening 63
corporate governance
2-20 Procedure for determining remuneration 4.1 Strengthening 63
corporate governance
2-21 Annual total remuneration ratio 4.1 Strengthening 63
corporate governance
Key Performance 74
Indicators (KPIs)
4. Strategy policies and 2-22 Statement on sustainable development strategies 1.1 ESG governance 12
practices 2-26 Mechanisms for seeking advice and raising 3.2 Stimulation of 48-51
concerns organizational vitality
2-27 Compliance with laws and regulations 4.2 Control business risks 66-67
Key Performance 74
Indicators (KPIs)
5. Stakeholder 2-29 Methods of stakeholder participation 1.3 Communication with 14
participation stakeholders
GRI standards Disclosure items Report section Page
GRI 3: Material Topics
3-1 Process to determine material topics 1.2 Assessment of material topics 13
3-2 List of material topics 1.2 Assessment of material topics 13
3-3 Management of material topics 1.2 Assessment of material topics 13
76Topband ESG & Social Responsibility Report 2023
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GRI standards Disclosure items Report section Page
GRI 201: Economic Performance
GRI 3: Management Approach Management approach for economic performance About Topband 06-09
Disclosures
Topic-specific disclosure 201-1 Direct economic value generated and distributed About Topband 06-0709
201-2 Financial implications and other risks and opportunities 2.1 Accelerate the development for 19-25
due to climate change a low-carbon future
GRI 202: Market Presence
GRI 3: Management Approach Management approach for market presence About Topband 06-10
Disclosures 4.2 Control business risks 66-67
GRI 203: Indirect Economic Impacts
GRI 3: Management Approach Management approach for indirect economic impacts 3.3 Engaging in social welfare 58-59
Disclosures
Topic-specific disclosure 203-1 Infrastructure investments and services supported 3.3 Engaging in social welfare 58-59
GRI 204: Procurement Practices
GRI 3: Management Approach Management approach for procurement practices 4.2 Control business risks 66-67
Disclosures
Topic-specific disclosure 204-1 Proportion of spending on local suppliers 4.2 Control business risks 67
Key Performance Indicators (KPIs) 73
GRI 205: Anti-corruption
GRI 3: Management Approach Management approach for anti-corruption 4.2 Control business risks 66-67
Disclosures
Topic-specific disclosure 205-1 Operations assessed for risks related to corruption Key Performance Indicators (KPIs) 74
205-2 Communication and training about anti-corruption policies 4.2 Control business risks 66-67
and procedures Key Performance Indicators (KPIs) 74
205-3 Confirmed incidents of corruption and actions taken 4.2 Control business risks 66-67
Key Performance Indicators (KPIs) 74
GRI 206: Anti-competitive Behavior
GRI 3: Management Approach Management approach for anti-competitive behavior 4.2 Control business risks 66-67
Disclosures
GRI 301: Materials
GRI 3: Management Approach Management approach for materials 2.2 Deepen green production 35
Disclosures
GRI 302: Energy
GRI 3: Management Approach Management approach for energy 2.1 Accelerate the development for
Disclosures a low-carbon future 16-17
2.2 Deepen green production 26-35
Topic-specific disclosure 302-1 Energy consumption within the organization 2.1 Accelerate the development for 16-17
a low-carbon future
Key Performance Indicators (KPIs) 71
302-4 Reduction of energy consumption 2.1 Accelerate the development for
a low-carbon future 16-17
2.2 Deepen green production 32-35
302-5 Reductions in energy requirements of products and 2.1 Accelerate the development for
services a low-carbon future 19-23
3.1 Guarantee customer benefits 38-40
GRI 303: Water and Effluents
GRI 3: Management Approach
303-2 Management of water discharge-related impacts 2.2 Deepen green production
Disclosures 31
Topic-specific disclosure 303-4 Water discharge 2.2 Deepen green production 31
Key Performance Indicators (KPIs) 71
303-5 Water consumption Key Performance Indicators (KPIs) 71
GRI 305: Emissions
GRI 3: Management Approach Management approach for emissions 2.2 Deepen green production 24-25
Disclosures 29-31
Topic-specific disclosure 305-1 Direct (Scope 1) GHG emissions 2.2 Deepen green production 24-25
305-2 Energy indirect (Scope 2) GHG emissions 2.2 Deepen green production 24-25
77Index
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GRI 306: Waste
GRI 3: Management 306-1 Waste generation and significant waste-related impacts 2.2 Deepen green production 27-31
Approach Disclosures 306-2 Management of significant waste-related impacts 2.2 Deepen green production 27-31
Topic-specific disclosure 306-5 Waste directed to disposal Key Performance Indicators (KPIs) 71
306-5 Waste directed to disposal Key Performance Indicators (KPIs) 71
GRI 308: Supplier Environmental Assessment
GRI 3: Management Management approach for supplier environmental assessment 2.2 Deepen green production 27
Approach Disclosures 4.2 Control business risks 66-67
Topic-specific disclosure 308-1 New suppliers that were screened using environmental Key Performance Indicators (KPIs) 73
criteria
308-2 Negative environmental impacts in the supply chain and Key Performance Indicators (KPIs) 73
actions taken
GRI 401: Employment
GRI 3: Management Management approach for employment 3.2 Stimulation of organizational vitality 48-57
Approach Disclosures
Topic-specific disclosure 401-2 Benefits provided to full-time employees that are not 3.2 Stimulation of organizational vitality 48-57
provided to temporary or part-time employees
401-3 Parental leave 3.2 Stimulation of organizational vitality 49
Key Performance Indicators (KPIs) 71
GRI 402: Labor/Management Relations
GRI 3: Management Management approach for labor/management relations 1.3 Communication with stakeholders 14
Approach Disclosures 3.2 Stimulation of organizational vitality 48
Topic-specific disclosure 402-1 Minimum notice periods regarding operational changes Key Performance Indicators (KPIs) 73
GRI 403: Occupational Health and Safety
GRI 3: Management 403-1 Occupational health and safety management system 3.2 Stimulation of organizational vitality 49-51
Approach Disclosures 403-2 Hazard identification risk assessment and incident 3.2 Stimulation of organizational vitality 49-51
investigation
403-4 Worker participation consultation and communication 3.2 Stimulation of organizational vitality 49-51
on occupational health and safety
403-5 Worker training on occupational health and safety 3.2 Stimulation of organizational vitality 49-51
403-6 Promotion of worker health 3.2 Stimulation of organizational vitality 49-51
403-7 Prevention and mitigation of occupational health and 3.2 Stimulation of organizational vitality 49-51
safety impacts directly linked by business relationships
Topic-specific disclosure 403-8 Workers covered by an occupational health and safety 3.2 Stimulation of organizational vitality 49-51
management system
403-9 work-related injuries 3.2 Stimulation of organizational vitality 49-51
Key Performance Indicators (KPIs) 72
403-10 Work-related ill health Key Performance Indicators (KPIs) 72
GRI 404: Training and Education
GRI 3: Management
Approach Disclosures Management approach for training and education 3.2 Stimulation of organizational vitality 52-53
Topic-specific disclosure 404-1 Average hours of training per year per employee 3.2 Stimulation of organizational vitality 53
Key Performance Indicators (KPIs) 72
404-2 Programs for upgrading employee skills and transition 3.2 Stimulation of organizational vitality 52
assistance programs
404-3 Percentage of employees receiving regular performance Key Performance Indicators (KPIs) 72
and career development reviews
GRI 405: Diversity and Equal Opportunity
GRI 3: Management
Approach Disclosures Management approach for diversity and equal opportunity 3.2 Stimulation of organizational vitality 48-52
Topic-specific disclosure 405-1 Diversity of governance bodies and employees 3.2 Stimulation of organizational vitality 48-52
4.1 Strengthening corporate governance 62
Key Performance Indicators (KPIs) 73
405-2 Ratio of basic salary and remuneration of women to men Key Performance Indicators (KPIs) 73
78Topband ESG & Social Responsibility Report 2023
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GRI 406: Non-discrimination
GRI 3: Management Management approach for non-discrimination 3.2 Stimulation of 51-52
Approach Disclosures organizational vitality
GRI 407: Freedom of Association and Collective Bargaining
GRI 3: Management Management approach for freedom of association and collective 3.2 Stimulation of 48
Approach Disclosures bargaining organizational vitality
GRI 408: Child Labor
GRI 3: Management Management approach for child labor 3.2 Stimulation of 48
Approach Disclosures organizational vitality
GRI 409: Forced or Compulsory Labor
GRI 3: Management Management approach for forced or compulsory labor 3.2 Stimulation of 48
Approach Disclosures organizational vitality
GRI 413: Local Communities
GRI 3: Management Management approach for local communities 3.3 Engaging in social 58-59
Approach Disclosures welfare
GRI 414: Supplier Social Assessment
GRI 3: Management Management approach for supplier social assessment 4.2 Control business risks 66-67
Approach Disclosures
Topic-specific disclosure 414-1 New suppliers that were screened using social criteria Key Performance 73
Indicators (KPIs)
414-2 Negative social impacts in the supply chain and actions taken Key Performance 73
Indicators (KPIs)
GRI 416: Customer Health and Safety
GRI 3: Management Management approach for customer health and safety 3.1 Guarantee customer 45-46
Approach Disclosures benefits
GRI 418: Customer Privacy
GRI 3: Management Management approach for customer privacy 4.2 Control business risks 68-69
Approach Disclosures
Schedules▼
Terms Refer to Contents
Company the Company Topband Refer to Shenzhen Topband Co. Ltd.RMB RMB ten thousand RMB 100 million Refer to RMB RMB ten thousand RMB 100 million
CSRC Refer to China Securities Regulatory Commission
Exchange Refer to Shenzhen Stock Exchange
Reporting Period Refer to January 1 2022 - December 31 2022
Articles of Association Refer to Articles of Association of Shenzhen Topband Co. Ltd.Huizhou Topband Refer to Huizhou Topband Electrical Technology Co. Ltd.Ningbo Topband Refer to Ningbo Topband Intelligent Control Co. Ltd.Topband Mexico Refer to Topband Mexico Company Limited
Topband Romania Refer to Topband Smart Europe Company Limited S.R.L.Topband Battery Refer to Shenzhen Topband Battery Co. Ltd.Subsidiary in India Refer to TOPBAND INDIA PRIVATE LIMITED
HVAC Refer to Heating Ventilation and Air Conditioning
BG and BU Refer to Business Group and Business Unit
IPD Refer to Integrated Product Development
SQE Refer to Supplier Quality Engineer
IQC Refer to Incoming Quality Control
79Shenzhen Topband Co. Ltd. Stock code: 002139.SZ
Topband Industrial Park Shiyan Sub-district Tel.: 0755-2765 1888
Bao'an District Shenzhen China www.topband.com.cn
Email: topband@topband.com.cn
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