2024
Environmental Social and
Governance Report
Hengtong Optic-Electric Co. Ltd.Table of
Contents Compliance and Low-Carbon Global Cooperation:
Stability: Development: Demonstrating
The Foundation for Illuminating a Green Hengtong's
02 About This Report Steady Growth Future Responsibility
04 Message from the Chairman
Corporate Governance 14 Environmental Protection and 56 Social Contribution and Rural 108
06 About Hengtong Optic-Electric ESG Governance 16 Management Revitalization
Stakeholder Engagement 19 Climate Change and Carbon Neutrality 59 Promoting Industrial Sustainable 111
Risk Management 23 Energy Efficiency and Transformation 70 Development
Business Ethics 26 Water-Saving Transformation and 78
Optimization
Emission Management and Recycling 80
112 Annex
112 Appendix I: GRI Standards Index
117 Appendix II: Index of Shanghai Stock
Exchange Guidelines
Leading Innovation: Caring for Employees:
Creating Leading Promoting
Quality Inclusive Development
Sustainable Innovation 34 Talent Attraction and Retention 88
Supply Chain Management 36 Empowering Growth and Development 94
Quality Control 44 Promoting Communication and Care 98
Customer Service and Information 50 Occupational Health and Safety 100
ProtectionHengtong Optic-Electric Co. Ltd. About This Report
2024 Environmental Social and Governance Report
About This Report
Overview Reporting Time Scope Report Scope and Boundaries Report Language and Format
This is the third Environmental Social and Govern- This Report covers the Company's activities for the The policies and data provided in this report cover the This report is compiled in Chinese and English and
ance (ESG) Report (hereinafter referred to as the "Re- financial year from January 1 2024 to December Company's headquarters and subsidiaries and the is available in electronic format. In the event of
port") published by Jiangsu Hengtong Optic-Electric 31 2024 (hereinafter referred to as the "reporting reporting scope is consistent with that of the Annual any discrepancy between the Chinese and English
Co. Ltd. (hereinafter referred to as "Hengtong Op- period"). Where relevant certain information may Report. Unless otherwise specified all currencies used versions the Chinese version shall prevail. Please
tic-Electric" "The Company" "we" or "us"). Jiangsu also include data from earlier or subsequent years. in this report are CNY. visit the Hengtong Optic-Electric website at http://
Hengtong Optic-Electric Co. Ltd. is a listed subsidiary www.htgd.com.cn/ for more information.of Hengtong Group Co. Ltd. (hereinafter referred to
as "Hengtong Group" or "the Group"). This Report We value the opinions of our stakeholders and wel-
provides a transparent disclosure of the Company's Basis for Preparation Data Source and Reliability come readers to contact us through the following responsibil it ies to key stakeholders-including Assurance contact information. Your feedback will help us shareholders customers partners employees further improve this report and enhance our overall
the environment and the community-as well as sustainability performance.its performance across environmental social and This Report was prepared primarily with reference to the Global Reporting Initiative (GRI) Standards and The data and case studies in this report are primarily governance (ESG) aspects. the Shanghai Stock Exchange Listed Company Self- sourced from the Company's statistical reports
Regulatory Guidelines No. 14 – Sustainability Reporting and related documents and have been reviewed
(Trial). It also takes into account and responds to by relevant departments. The Company's Board of
topics of concern identified in Morgan Stanley Capital Directors guarantees that this report contains no false Email:
International (MSCI) ESG Ratings and S&P Global or misleading statements and assumes responsibility htgd@htgd.com.cn
Sustainability Assessments (CSA Questionnaires). for the authenticity accuracy and completeness of its
contents.The content of this Report was developed following
a structured process which includes: identifying Tel:
and prioritizing key stakeholders; determining and 0512-63430985
prioritizing material ESG topics; defining the reporting Confirmation and Approval
boundaries; collecting relevant data and information;
compil ing the Report based on the col lected
information; and reviewing the content for accuracy This report was confirmed by management and approved
Address:
and completeness. by the Board of Directors on August 22 2025.No.2288 Zhongshan North Road
Wujiang District Suzhou City Jiangsu
Province China
02 03Hengtong Optic-Electric Co. Ltd. Message from the Chairman
2024 Environmental Social and Governance Report
Message from the Chairman
Embracing Technological Change Driving across the supply chain and advocates for mutual trust
Green Development with Innovation and shared growth. Together these efforts foster a resilient
cooperative ecosystem that supports long-term value
Over the past year Hengtong Optic-Electric has deepened creation. Beyond its business commitments Hengtong
t h e i n t e g r a t i o n o f t e c h n o l o g i c a l a n d i n d u s t r i a l Optic-Electric actively fulfills its social responsibilities.innovation. Building on its role as the creator of the The Company contributes to national poverty alleviation
world's first "Global Lighthouse Factory" in the optical programs and participates in initiatives such as "Ten
communications sector the Company has applied Thousand Enterprises Revitalizing Ten Thousand Villages"
frontier technologies such as artificial intelligence to and is committed to delivering tangible benefits to society.strengthen product R&D and intelligent manufacturing.These efforts have generated breakthroughs in cost Strengthening Governance and Enhancing
optimization energy efficiency and product quality Resilience
driving steady improvements in profitability and powering
the Company's high-quality development. In 2024 two To keep pace with the accelerating process of globalization
companies were newly recognized as National Green Hengtong Optic-Electric continuously optimizes and
Factories and one as a National Green Supply Chain upgrades its governance framework working toward
Management Enterprise. Furthermore the Company a world-class system that is compliant transparent
actively responded to the Science-Based Targets initiative and efficient.In response to increasing international
(SBTi) with two subsidiaries successfully passing the SBTi uncertainties the Company has further strengthened its
validation. While the Company achieved an MSCI ESG comprehensive organization-wide risk prevention and
rating upgrade-further strengthening its foundation for control mechanisms. By embedding risk awareness into
competing in the global marketplace. every stage of management-from strategy formulation to
operational execution-Hengtong Optic-Electric enhances
Practicing Responsibil ity Building a its resilience and safeguards the sustainable growth of its
Collaborative Ecosystem for Shared Growth business.Cui Wei Hengtong Optic-Electric firmly believes that the vitality Looking forward Hengtong Optic-Electric will continue of an enterprise lies in its ability to continuously create to work hand in hand with employees partners and
social value. For employees the Company strives to align stakeholders to practice ESG values and unleash the
Hengtong Optic-Electric Co. Ltd. corporate growth with personal development fostering industry's intrinsic momentum. Through its communications
Chairman an environment that is safe inclusive equitable and networks and energy interconnection expertise the sustainable-where individuals can fully realize their potential. Company will connect the world empower development
For partners Hengtong Optic-Electric strengthens its quality advance sustainable cooperation and contribute its strength
management system promotes collaborative innovation to building a brighter and more sustainable future for all.In 2024 a new round of technological revolution-led by artificial intelligence-is reshaping the global
innovation landscape at an unprecedented pace. Against this backdrop of rapid transformation and
global challenges Hengtong Optic-Electric advances with strategic foresight. By integrating ESG
principles into corporate strategy the Company is building a powerful engine for sustainable growth
and actively fulfilling its mission in this new era.
04 05Hengtong Optic-Electric Co. Ltd. About Hengtong Optic-Electric
2024 Environmental Social and Governance Report
About Hengtong Optic-Electric
The Energy Interconnection Transoceanic Communications
Business and Deepsea Technology
Company Profile Corporate Culture The Company is accelerating the development of The Company's transoceanic submarine cable system the entire offshore wind power industrial chain with delivery capability has reached a historical high with
continuous improvements in its deep-sea and large- a cumulative delivery of over 106000 kilometers. Its
Hengtong Optic-Electric delivers industry-leading products Hengtong Optic-Electric integrates traditional Chinese culture scale wind turbine installation capabilities. Production deep-water main stations and network management
and solutions in optical communications smart grids local culture contemporary characteristics industry features bases including Sheyang in Jiangsu and Jieyang in s y st e m s a r e n o w i n d e p e n d e n t l y co n t r o l l e d
marine energy and marine communications. With integrated and unique company attributes into its corporate culture. Guangdong are expanding capacity for high-end demonstrating full technological autonomy. The
capabilities spanning design R&D manufacturing sales and This creates the "Hengtong Culture System" characterized by submarine cables marine hoses and other marine Company has also successfully won bids for major
services the Company provides comprehensive support to "The highest virtue is like water—it benefits all things without energy products supporting the Company's strategic national scientific projects reflecting its leading
global customers. Leveraging an extensive global industrial contention" and "adapting to change in accordance with growth in the marine energy sector. position in the field.and marketing network Hengtong Optic-Electric has grown the Way." This cultural system is the source of Hengtong's
into a world-leading provider of information and energy enduring vitality.interconnection solutions driving digital transformation and
sustainable development worldwide.Business Layout
Hengtong Optic-Electric has a nationwide industrial presence with three high-tech industrial parks in Suzhou (Hengtong Optic Comm.Tech-Park Hengtong International Marine Industrial Park and Hengtong Wire and Cable Industrial Park). Our products and services
support major communication and energy internet system integration projects globally. In the context of economic globalization and
the implementation of the Belt and Road Initiative Hengtong Optic-Electric continuously improves its global marketing network and
industrial layout in communication networks and energy interconnection. In recent years Hengtong has expanded its industries to
Europe South America South Asia Africa Southeast Asia covering all five continents. Hengtong Optic-Electric's overseas industrial Hengtong Sheyang Manufacturing Base
layout is continually improving with a total of 12 overseas industrial bases enhancing its global operations market competitiveness
and brand value.Business Overview
In 2024 the Company focused on its two core businesses-communications networks and energy interconnection-while
advancing R&D and expanding its global industrial footprint in optical communications marine communications and
marine energy to drive high-quality growth. For the full year the Company recorded operating revenue of RMB 59.984 billion
representing a year-on-year increase of 25.96% and achieved net profit attributable to shareholders of RMB 2.769 billion up Hengtong Jieyang Manufacturing Base
28.57% year-on-year. Hengtong Major Transoceanic Submarine Cable
System Project Site
The Communications
Network Business
Leveraging 5G advanced computing infrastruc- Global Submarine Cable
ture and AI applications Hengtong Optic-Electric Operations
continues to drive the evolution and upgrade of
optical communications technology. The Com- 400G DR4 Silicon 300G CXP2 AOC 50G Combo PON OLT The PEACE project has been fully commercialized
pany's ultra-low-loss optical fiber has set new Photonics Module Optical Module connecting Singapore to France over a total length
records in domestic ultra-long-distance ultra-low- of more than 22000 kilometers. It establishes a
loss optical cable projects. In high-speed optical major information interconnection channel between
modules 400G modules have been deployed Asia Europe and Africa significantly expanding the
at scale 800G modules have completed testing Company's international submarine cable operations
and the 400G silicon photonic module has been capabilities.upgraded and successfully tested. Overseas
production capacity is expanding rapidly with
manufacturing bases put into production in
Egypt Indonesia India and Mexico establishing Hengtong's German Hengtong Egypt Hengtong's Mexican
a global supply network to support international Manufacturing Base Manufacturing Base Manufacturing Base
operations and market demand. j-fiber GmbH
06 07Hengtong Optic-Electric Co. Ltd. About Hengtong Optic-Electric
2024 Environmental Social and Governance Report
Industry Awards and Recognition ESG Major Events and Honors
2024 New Fortune Magazine "Best Listed Company" Jiemian News "2024 ESG Pioneer 60" and "Annual
Optical Communication Intelligent Manufacturing and Award and "ESG Best Practices Award" Outstanding Corporate Governance Award"
Sector Digital Transformation
In 2024 the Company won the bid for the first domestic During the reporting period the Company's "Lean Digital
direct-to-data center backbone optical cable project Factory Based on 5G + Artificial Intelligence" project was
using G.654.E optical fiber. Its ultra-low-loss performance selected by the Ministry of Industry and Information
achieved new milestones in domestic ultra-long- Technology for both the "Digital Leadership" and "New
distance optical cable projects setting a benchmark Generation IT–Manufacturing Integration Demonstration"
for long-distance low-loss terrestrial optical cables. In lists. This recognition highlights the Company's industry-
addition breakthroughs in key hollow-core optical fiber leading position in intelligent manufacturing and the
technologies have established a differentiated competitive integration of production digitalization with information
advantage in low-latency high-bandwidth transmission technology.materials further strengthening the Company's leadership
in the optical communications sector.Energy Interconnection and Transoceanic Communications
Offshore Wind and Deep-Sea Technology
The Company has successfully undertaken multiple The Company's annual delivery of transoceanic submarine
domestic and international offshore wind and marine cable systems reached a historical high with a cumulative
oil & gas projects maintaining a leading position in delivery exceeding 106000 kilometers. Its independently
the full marine energy industry chain in China. In the developed deep-water main stations and network
smart grid sector it continues to strengthen its market management systems were successfully applied in major
position and service capabilities in high-voltage power national scientific projects comprehensively enhancing the Dun & Bradstreet and SMM "ESG Excellence Enterprise In September 2024 t he Company faci l i tated the
transmission supporting the development of integrated autonomy and controllability of deep-sea communication Award" in the new energy sector establishment of the Suzhou Corporate Sustainable
and intelligent energy networks. equipment. Development Association and assumed the role of Executive
Vice President Unit further strengthening its leadership in
advancing regional sustainable development practices
08 09Hengtong Optic-Electric Co. Ltd. About Hengtong Optic-Electric
2024 Environmental Social and Governance Report
ESG Sustainable Development Value Management
Achievements
Project 2023 2024 Year-on-year Change
Green Manufacturing
National Green Factory 5 7 +2
National Green Product 7 7 /
National Green Supply Chain Enterprise 3 4 +1
Provincial Green Factory 7 8 +1
Industrial Product Green Design Demonstration Enterprise 3 3 /
WEF Global Lighthouse Factory 1 1 /
(Nearly) Zero Carbon Factory 1 2 +1
ISO 14068 Organizational Carbon Neutrality 4 4 /
ISO 50001 Energy Management System 6 10 +4
ISO 14064 Organizational Carbon Emissions System 7 9 +2 ESG-related Indices and Funds 2023 2024 Year-on-year Change
ISO 14067 Product Carbon Footprint 28 48 +20 Number of ESG-related Indices Included 13 15 +2Science Based Targets (SBTi) Engagement 2（ Committed) 2（Validated) +2 Number of ESG-related Fund Products Included 4 5 +1R&D Innovation
Weight of ESG-related Indices 3.58% 4.30% +0.72%
National Enterprise Technology Center 1 1 /
National Postdoctoral Research Station 1 3 +2
Provincial Postdoctoral Innovation and Practice Base 4 4 / ESG Sustainable Value Management Performance
Provincial Engineering Technology Research Center/Enterprise
Technology Center/Industrial Design Center 41 43 +2
Project 2023 2024 Year-on-year Change
Academician Workstation 3 3 /
High-quality Development Self-built Photovoltaic Capacity 10.5 MW 53.7 MW +43.2 MW
High-tech Enterprises 25 25 / Purchased Green Electricity 227100 MWh 220600 MWh -6500 MWh
National-level Specialized Refined Unique and Innovative
"Little Giant" Enterprises 8 12 +4 Total GHG Emissions 385822.96 tCO2e 460343.01 tCO2e +74520.05 tCO2e
National Manufacturing Single Champion Enterprises 3 5 +2 GHG Emission Intensity 810.18 tCO e/100 million RMB 767.44 tCO2e/100 million -42.74 tCO2e/100 million 2 RMB RMB
R&D Investment 2.101 billion RMB 1.895 billion RMB -0.206 billion RMB
International & Domestic
Standards (Cumulative) 426 457 +31
Rating Agency 2023 2024 Year-on-year Change
Authorized Invention Patents
MSCI CCC B Upgraded by 1 level (Cumulative) 1198 1417 +219
S&P Global Ratings 20 23 +3 PCT International Patents
(Cumulative) 135 145 +10
Refinitiv 76 78 +2
Operating Revenue 47.622 billion RMB 59.984 billion RMB +12.362 billion RMB
SynTao Green Finance A- A- -
Operating Profit 2.311 billion RMB 3.301 billion RMB +0.99 billion RMB
10 11Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
01
Compliance
and Stability:
The Foundation for
Steady Growth
Hengtong Optic-Electric firmly believes that
sustainable development is not only the
cornerstone of building long-term value and
enhancing our industry leadership but also
the core driving force that propels us forward.Guided by this conviction we are committed
to embedding sustainability into our corporate
governance practices. We systematically establish
and continuously enhance our governance
structure ESG management frame work
stakeholder engagement mechanisms risk
management processes and business ethics
standards. Through these practices we strive to
create lasting shared value for our employees
stakeholders and the communities in which we
operate.Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
1.1
Corporate Governance
The Company strictly complies with the Company Law the Securities Law the Code of 4 In accordance with the relevant requirements and of insiders standardizes the review process for
Corporate Governance for Listed Companies the Shanghai Stock Exchange Listing Rules regulations of the China Securities Regulator y external information disclosure and clearly defines
Commission (CSRC and the Shanghai Stock Exchange
the Basic Standards for Enterprise Internal Control as well as the latest requirements on the obligations and responsibilities of personnel and based on its own operational circumstances to maintain the confidentiality of undisclosed
corporate governance issued by the China Securities Regulatory Commission (CSRC) and the Company has continuously improved its internal information. These measures enhance the Company's
the Shanghai Stock Exchange. Taking into account the Company's actual circumstances control system. As a result the Company's risk awareness of information disclosure and effectively
we continuously improve our corporate governance structure strengthen and implement prevention capabilities and standardized operational prevent violations related to improper disclosure.management have been significantly enhanced.the internal control system and standardize corporate operations. The Company's
corporate governance practices are in full compliance with the Company Law and 6 The Company actively collects and responds to 5 The Company strictly follows the requirements of shareholders' and investors'reasonable suggestions
relevant provisions of the CSRC. The specific governance practices are as follows: the Information Disclosure Management System and opinions through regular reports ad hoc
and the Insider Registration Management System. announcements emails phone calls and the SSE
B y i m p l e m e n t i n g m ea s u r e s s u c h a s i n s i d e r e-Interaction platform. It treats all shareholders and
registration and external information submission investors fairly and works to protect and safeguard
The roles and responsibilities of the General Meeting of Shareholders the Board of Directors the Board tracking the Company strengthens the management their lawful rights and interests.of Supervisors and the management team are clearly defined. Each body performs its duties exercises
its responsibilities maintains checks and balances and coordinates with one another. The Company's
governance practices-including those related to shareholders and the General Meeting of Shareholders
controlling shareholders and the listed company directors and the Board of Directors supervisors and the
Board of Supervisors performance evaluation and incentive mechanisms stakeholders and information
disclosure and transparency-fully comply with the requirements set forth by regulatory authorities. The Board Committees Meeting Frequency
Company maintains independence in its business operations personnel assets organizational structure and
financial management.The Company strictly convenes and holds Directors strictly adhere to the Articles of Audit Committee Strategy and Development Committee1
the General Meeting of Shareholders in Association the Rules of Procedure for Board
accordance with the Company Law the Meetings and relevant CSRC and Shanghai
Articles of Association the Rules of Procedure Stock Exchange regulations. They attend 10 2
for Shareholders' Meetings and other relevant Board and shareholder meetings on time
laws regulations and procedures. Lawyers are fulfill their duties review proposals and
engaged to witness the meetings on-site and provide opinions and recommendations on
issue legal opinions ensuring that the rights of major decisions. The Company discloses
shareholders are fully protected. information in a timely manner based on the Nomination Committee Remuneration and Evaluation Committee
decisions made at Board meetings.
2 The Company has completed the re-election
of the Board of Directors in strict accordance 3 The Company has completed the re-election of 3 4
with the Company Law the Articles of the Board of Supervisors in strict accordance with
Association and relevant regulations of the the Company Law the Articles of Association
China Securities Regulatory Commission and relevant regulations of the China Securities
(CSRC and the Shanghai Stock Exchange Regulatory Commission (CSRC) and the Shanghai Stock Exchange resulting in the formation Environment Social and Governance (ESG) Committeeresulting in the formation of the ninth
Board of Directors. The Board consists of 12 of the ninth Board of Supervisors. The Board
directors including 4 independent directors consists of 3 supervisors including 1 employee
and its size and composition comply with representative supervisor and its size and 2
applicable laws and regulations. The Board composition comply with applicable laws and
has established five specialized committees: regulations. The supervisors perform their duties
the Strategy and Development Committee Audit by overseeing the legality and compliance of By continuously improving its internal control system the BDO China conducted an audit of the effectiveness of the
Committee Nomination Committee Remuner- major daily operational matters financial matters Company has enhanced operational efficiency and effectiveness Company's internal control over the 2024 financial statements
ation and Evaluation Committee and Environ- related-party transactions and the performance of duties by directors and senior management. supported the achievement of strategic objectives and and issued an unqualified standard audit opinion. The 2024 ment Social and Governance (ESG) Commit- protected the interests of the Company and all shareholders. Internal Control Audit Repor t issued by BDO China Shu Lun
tee all of which operate in accordance with the This supervision helps protect the lawful rights and interests of the Company and its shareholders During the reporting period the eighth meeting of the ninth Pan CPAs Certified Public Accountants LLP is available on the Articles of Association and each committee's and ensures the standardized and compliant Board of Directors reviewed and approved the 2024 Internal Shanghai Stock Exchange website: http://www.sse.com.cn.Rules of Procedure. operation of the Company. Control Evaluation Report which is available on the Shanghai Stock Exchange website: http://www.sse.com.cn.
14 15Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
1.2 Clear Working Mechanisms to Strengthen Execution
ESG Governance The Company has established a Hengtong Green and Low-Carbon Management Working Mechanism aligned with the
indicator system. The mechanism is coordinated and led by the ESG Sustainable Development Committee with the ESG
Working Group taking the lead in implementation. Responsibilities for each key indicator are clearly assigned to the relevant
departments:
In 2023 Hengtong Optic-Electric established a three-tier ESG governance structure
consisting of the Board of Directors the ESG Committee and the ESG Working Group Operations Management Strategic Management Supply Chain Management
ensuring seamless alignment between top-level decision-making strategic planning Department Department Department
and execution. Building on this foundation in 2024 the Company further strengthened
its green and low-carbon governance capabilities. A green and low-carbon management Oversees carbon emission management Leads green innovation and policy Manages the green supply chain
indicator system and operational mechanism were integrated into the ESG governance and resource efficiency develops research develops roadmaps for promotes ESG evaluation and emission reduction implementation green products and technologies and improvement plans for suppliers and
framework creating a closed-loop governance model where objectives are quantifiable plans and organizes annual carbon analyzes domestic and international maintains a qualified supplier list.responsibilities are clearly assigned and implementation is measurable and assessable. inventories and energy/resource regulatory trends to propose responsive
statistics. measures.Through a closed-loop mechanism of "departmental responsibility – indicator tracking – performance feedback" the Company
A Systematic Indicator Framework to Ensure has institutionalized normalized and accountability-driven green and low-carbon governance ensuring that all aspects of the management framework are effectively implemented.Measurable and Assessable Managemen
In 2024 the Company formulated the Hengtong Green and Low-Carbon Management Indicator System which "Six Special Actions" to Accelerate the Implementation
is structured around five key dimensions: carbon emission management resource efficiency green innovation
green supply chain and policy compliance and impact. The system establishes scientific management of Dual Carbon Goals
objectives and core indicators ensuring that the Company's green development initiatives are evidence-based
measurable and verifiable through the setting and tracking of key indicators. Guided by its dual-carbon objectives the Company has building on its governance framework and indicator system launched six
special initiatives to create a multi-dimensional and systematic pathway for low-carbon transformation:
Guided by the Science Based Targets initiative (SBTi) the Company manages
greenhouse gas emissions across Scope 1 Scope 2 and Scope 3. Key
performance indicators such as annual carbon inventory and carbon intensity per
unit of output are adopted to monitor and track progress ensuring a scientific Establish a comprehensive management
Carbon and data-driven pathway toward emission reduction. Management system covering carbon emissions resource
Emission System efficiency green innovation supply chain
Managemen By monitoring the efficiency of energy water and raw material usage Development and policy response aligning management
the Company promotes waste management and resource recycling and Gradually increase the use of renewable and capabilities with international standards.Resource establishes an annual resource utilization assessment and improvement plan. Energy clean energy reduce reliance on fossil fuels
Efficiency Structure
The Company emphasizes the strategic importance of green and promote cleaner low-carbon energy Adjustment
products and technologies in its overall development. It integrates consumption. Continuously optimize production processes
sustainability into its R&D efforts developing a roadmap for green Process and improve workflows and apply recyclable
innovation and planning sustainable product lines to drive long- Technology degradable and low-carbon raw and auxiliary
term environmental and business value. This approach ensures that
Green Innovation
materials enhancing the green and low-
Innovation environmentally friendly solutions and low-carbon technologies are carbon performance of products.central to the Company's growth strategy. Promote the green transformation and iterative upgrading of production equipment improving Equipment
Benchmarking against international standards the Company overall operational efficiency and energy
Technology
Upgrade
incorporates green low-carbon and ESG performance assessments into consumption. Build intelligent management platforms
its supplier management. It has set a target to cover 100% of suppliers Digital leveraging big data and artificial intelligence
Green and established a qualified green and low-carbon supplier list to ensure Technology to enable dynamic monitoring and precise
Supply sustainable and responsible supply chain practices. Empowerment management of carbon emissions and
Chain Adjust industrial structure and investment energy efficiency.Policy The Company conducts systematic research and impact analysis of domestic and direction accelerating expansion in new Industrial
Compliance international policies and regulations develops actionable response plans and energy clean energy and marine energy Layout
and Impact ensures their implementation through internal communications and external sectors and prioritize development in Optimizationdisclosures. This approach strengthens compliance management and enables regions abundant in renewable energy.the Company to proactively address regulatory and policy requirements.Five Key Dimensions of the Hengtong Green and Low-Carbon Management Indicator System
16 17Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
1.3
Throughout the implementation of these six initiatives the Company has positioned energy management and efficiency
improvement as the core drivers of its green and low-carbon transformation promoting practical actions across process Stakeholder Engagement
optimization equipment upgrades facility retrofitting and energy structure adjustments achieving substantial results.Hengtong Optic-Electric has established regular communication and engagement
mechanisms with its stakeholders to timely and thoroughly understand their
expectations and concerns regarding the Company's sustainable development. By
fostering long-term trust-based collaborative relationships the Company effectively
creates value for all stakeholders.Further Energy-Saving High-Efficiency Auxiliary Renewable
Breakthroughs in Equipment Motor Facilities Energy Hengtong Optic-Electric upholds a principle of integrity in business operations strictly fulfilling its information Investors
Process Technology Upgrades Replacement Optimization Deployment disclosure obligations by providing comprehensive and accurate reporting on its operational performance and and significant matters thereby safeguarding the legal rights of shareholders and investors. By continuously
The Company continues The Company has The Company has The Company The Company continues regulators enhancing the market competitiveness of its products and services the Company consolidates its industry-
to optimize its preform introduced high- fully implemented has implemented to optimize its energy leading position achieving steady business growth. At the same time Hengtong emphasizes sustainable
manufacturing speed dual-head the replacement of technological upgrades structure by accelerating development actively implementing green practices and minimizing the environmental and social impact of
processes using drawing machines conventional motors on chiller units chilled the construction of its operations thereby creating long-term stable economic value for investors. During the reporting period
advanced techniques and implemented with high-efficiency water systems and distributed photovoltaic the Company held approximately 115 strategy seminars online and offline research visits investor meetings
such as high-efficiency corresponding motor energy-saving motors cooling towers combined projects and participating roadshows and earnings briefings hosting a total of about 1280 broker and institutional investors.deposition achieving and automation effectively improving with the application of an in green power and
greener more efficient upgrades significantly operational efficiency. intelligent management renewable energy
and environmentally reducing energy This initiative has platform significantly certificate trading. To
friendly production. consumption. These resulted in energy improving energy date a total of 53.7 MW
These improvements measures have savings of approximately utilization efficiency. of photovoltaic projects
have resulted in energy achieved energy savings 1180 tons of standard These measures have have been developed Hengtong Optic-Electric is committed to being a trusted global provider of information and energy Partners
savings of approximately of approximately 650 coal and CO emission achieved energy savings (11.3 MW already interconnection solutions. Upholding a quality-first development philosophy the Company offers integrated 2
2288 tons of standard tons of standard coal reductions of around of approximately 1132 operational) and 221000 advanced solutions from customized demand analysis and R&D to production and manufacturing. By
coal and CO emission and CO emission 2457 tons. tons of standard coal and MWh of green electricity promoting high-quality standards across the entire industry chain Hengtong empowers its partners in the 2 2
reductions of around reductions of around CO emission reductions have been purchased. high-end manufacturing supply chain and contributes to the sustainable development of the industry.2
4765 tons. 1352 tons. of around 2358 tons. These efforts have
contributed to cumulative
CO2 emission reductions
of approximately 145000
tons.Hengtong Optic-Electric actively fosters a shared-growth community with its employees providing a high-
Employees quality working environment and broad career development opportunities. The Company encourages
employee engagement creativity and participation in corporate development while supporting each
individual to maximize their potential and realize personal value.Through the above measures the Company has achieved dual breakthroughs in energy saving and emission reduction enhancing
both energy efficiency and environmental performance. These initiatives not only provide a practical model for green upgrading
across the industrial chain but also offer strong support for the realization of the dual-carbon goals. While achieving its own sustainable growth Hengtong Optic-Electric promotes the coordinated development
Communities of surrounding regional economies. In its global operations the Company consistently practices corporate
social responsibility increasing investment in social welfare and deepening humanistic care. Key initiatives
include rural revitalization and educational support programs which collectively contribute to the
Governance Moving Toward Refinement and Systematization harmonious and sustainable development of local communities.In 2023 the Company set the goal of "turning conceptual plans into concrete capabilities". In 2024 through the integrated
implementation of the indicator system working mechanisms and special initiatives the Company further translated its strategic
concepts into specific metrics governance structures into assigned responsibilities and long-term visions into annual action plans. Stakeholder Distribution of Hengtong Optic-Electric
18 19Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
Double Materiality Assessment
During the reporting period Hengtong Optic-Electric actively engaged with its key stakeholders on material topics and leveraged The identification of material topics is a key component of Hengtong Optic-Electric's ESG management helping the Company
the insights gained to enhance its management practices. The Company's main stakeholder groups include employees suppliers focus on critical areas and clarify its ESG strategy and work priorities. In 2024 the Company referenced relevant standards from
customers and consumers media investors and shareholders industry associations and government and regulatory bodies. Their the Shanghai Stock Exchange and the Global Reporting Initiative (GRI) to establish a sustainability topic inventory. Each topic was
key concerns and the corresponding engagement approaches are summarized as follows: assessed for its financial impact on the Company as well as the actual and potential impacts of the Company's performance on
the economy society and the environment.Distribution of
Stakeholders Stakeholder Group Key Concerns Engagement Channels Understanding the Company's Activities and Business Establishing a Topic List
Product and Service Safety B usiness Ethics G eneral Meetings
Context
Investors & & Quality Diversity Equality & Investor Engagement Identify company-specific ESG topics Inclusion Activities Analyze internal activities and business relationships including Shareholders Innovation by referencing macro and industry Employee Health & Earnings Releases & sustainability impacts across the value chain; Corporate Governance policies international sustainability Safety Announcements Assess external environment including 2024 macro policies
Investors and standards benchmarking leading ESG
Regulators E mployee Health & industry regulations and key trends to identify potential impacts; reports and aligning with strategic
Pollutant Management Safety O n-site Interviews & Identify and categorize key stakeholders both internal and priorities. A total of 20 ESG topics were
Government & Climate Change Response P roduct and Service Research external. identified in 2024.Regulators Biodiversity & Ecosystems Safety & Quality Regular Meeting
Environmental Compliance B usiness Ethics
C orporate Governance
Product and Service Safety S upplier Development &
& Quality C orporate Governance Audits
Suppliers Employee Health & Safety Business Ethics Supplier Conferences
Data Security & Privacy Regular Supplier Visits &
Protection Assessments Materiality Assessment: Surveys
Review and Validation
Impact Assessment
Energy Management I nnovation I ntegrate impact and financial Define impact materiality assessment factors including likelihood
Waste Management D ata Security & Privacy materiality results apply I ndustry Meetings & threshold standards and scale scope and irreversibility; Water Management Protection
Cooperative Industry Employee Care & Welfare S upply Chain Exchanges develop a Double Materiality C onduct stakeholder engagement and surveys to preliminarily assess
Partner Associations Employee Health & Safety Management I ndustry Exhibitions & R&D Matrix; the impacts of each topic;
Product and Service Safety B usiness Ethics Collaborations Consolidate stakeholder feedback and expert opinions set thresholds
& Quality C orporate Governance R esults reviewed and approved by the Board of and prioritize topics;
Directors with material ESG Generate the impact materiality assessment results.Product and Service Safety E mployee Development & C ustomer Satisfaction
topics for 2024 disclosed as
& Quality Training Surveys reporting priorities.Customers & Innovation CRM Platforms
Consumers Business Ethics
S upply Chain
Employee Health & Safety Management
Customer Hotlines
Company Media
Diversity Equality & E mployee Care & Communications Financial Materiality Assessment:
Inclusion Welfare C orporate Governance Define financial materiality assessment factors including likelihood and magnitude of financial impacts (analyzed from
C orporate Governance I nternal Meetings the perspective of resource and relationship dependency and Employee Health & Safety I nternal Publications influence);
Product and Service Safety B usiness Ethics Employee E mployee Interviews & & Quality Activities Conduct surveys with internal departments management Employees Employees Employee Care & Welfare Development & S urveys shareholders and investors to preliminarily assess financial impacts;
Data Security & Privacy Training
Protection Diversity Equality &
E mployee Feedback (Email Consolidate stakeholder feedback and expert opinions set
Inclusion Platform Hotline etc.) thresholds and prioritize topics;
Generate the financial materiality assessment results.Energy Management D ata Security & Privacy M edia Briefings
Pollutant Management Protection S upply Chain P ress Releases & Communities Media Employee Health & Safety Announcements
Product and Service Safety Management
& Quality S ocial Contribution
C ompany Media
R ural Revitalization Communications
Hengtong Optic-Electric Double Materiality Assessment Process
20 21Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
1.4
Hengtong Optic-Electric identified 20 material topics for 2024 and prioritized them according to both impact and financial Risk Management
significance resulting in the development of the Company's 2024 Double materiality matrix. Among these product and service
safety and quality as well as supply chain management were assessed as having high financial importance for the Company.Hengtong Optic-Electric has established a comprehensive risk management framework
with the Board of Directors and its Audit Committee providing overall leadership for risk
management across the Company.Board of Directors
Plan and establish the risk management framework develop risk management policies and guidelines
Product and Service and oversee the implementation of risk management measures
Safety & Quality
Audit Committee
Supply Chain
Employee Health and Safety Management Implement Board policies receive reports from the Internal Audit Department and oversee overall risk
Corporate Governance management
Climate Change Response
Business Ethics Risk Management Committee Internal Audit Department
Environmental Compliance Management Conduct risk identification assessment Regularly audit risk management controls
Water Resource Management and mitigation in accordance with policies and procedures and report periodically to
Bio-diversity and Ecosystem approved by the Board the Audit Committee
Social Circular Economy Hengtong Optic-Electric's Risk Management Structure
Contribution Diversity Equality and Inclusion
Innovation
Waste Management Hengtong Optic-Electric has established a comprehensive risk management and supervision mechanism
Pollutant Management fully leveraging the "three lines of defense" approach. The Board of Directors and the Audit Committee
serve as the leading and responsible bodies for risk management. The Internal Audit Department under the
Energy Management Audit Committee conducts annual audits across all subsidiaries of Hengtong Optic-Electric covering areas
Rural Revitalization such as business ethics and anti-corruption practices. All business units comply with the Company's risk
management standards and implement preventive measures promptly identifying and controlling risks to
Employee Care and Welfare prevent major risk events.Employee Development & Training
Risk
Data Security and Privacy Protection The risk management working group and various business departments Identification regularly collect information inventory and identify possible risk sources
and classify them according to risk attributes and assess the risk level based on the
Assessment likelihood and severity of occurrence.Based on the results of risk identification and assessment we establish risk
Risk Response response and prevention measures to avoid related risks and enhance our
and Prevention risk response capabilities. At the same time the Company conducts regular reviews through risk management controls and procedures and diversifies its
investments and business portfolios to spread risk.Environmental Issues Social Issues Governance Issues Financial Materiality
The Company actively conducts timely reviews of risk management and
Hengtong Optic-Electric 2024 Double Materiality Matrix Improved Risk response situations coordinates with relevant departments and personnel
Management to promote risk management actions and enhances employees' risk
Capabilities management capabilities through training to ensure a closed loop of internal
risk management.Hengtong Optic-Electric Risk Management Process
2223
Impact MaterialityHengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
Hengtong Optic-Electric places great emphasis on cultivating a risk-aware culture. Each year the Company organizes training for
directors supervisors and senior management as arranged by regulatory authorities to enhance risk awareness and identification
capabilities. Meanwhile emerging regulations and policies are promptly studied and risk-related training is provided to employees Case Conduct CSRD Training to Enhance Compliance Capabilities in International Business
to ensure compliance in business operations and maintain risks within acceptable levels. In the development of new products
and business relationships financial regulatory and operational risks are fully considered strengthening risk management
capabilities. Furthermore risk management indicators are integrated into the performance evaluation of senior management Risk Identification:
and personnel making significant contributions to risk identification and management are rewarded fostering continuous
improvement in the Company's risk management capabilities. In response to the compliance requirements of the EU Corporate Sustainability Reporting Directive (CSRD) for cross-border operations and international subsidiary management the Company through internal research and support from external
professional institutions has identified potential risks for Hengtong Optic-Electric and its subsidiaries Cablescom in Spain
and Alcobre in Portugal in ESG information disclosure data collection and reporting system development.Risk Type Risk Description Mitigation Measures Response Measures:
The Company organizes dedicated CSRD training sessions and workshops inviting external professional institutions
Strategic risk refers to the to provide instruction and integrating internal research outcomes. This offers systematic guidance to personnel at the
potential risks encountered by Market monitoring: Regularly track market trends policy changes and domestic headquarters and relevant international business and management departments. The training covers regulatory
the Company in formulating competition to align strategy with the external environment. requirements reporting processes data collection and internal management standards enhancing each business unit's
and implementing its
long-term strategic plans Technology investment: Increase investment in emerging technologies
understanding and implementation of the directive's requirements.Strategic
Risk including market competition
to maintain industry-leading position especially in 5G smart grids marine
technological changes communications and renewable energy. Management Outcomes:
policy shifts and industry Diversification: Diversify business and expand regions to mitigate market and
trends. Rapid technological policy risks. Through systematic training and internal workshops the Company has significantly enhanced the awareness and
advancement in the industry execution capability of CSRD compliance requirements among cross-border operations and international subsidiaries and global energy policy Regular review and adjustment: Implement rolling strategic planning to established a unified ESG information management process laid a foundation for the standardization accuracy and
adjustments may affect the continuously evaluate and adjust strategy. timeliness of future reporting reduced potential compliance risks and strengthened sustainable development capabilities
Company's long-term strategy. in international markets.Legal and compliance risk Compliance system: Establish a robust compliance framework to ensure all
Legal & involves whether the Company operations comply with laws.Compliance complies with applicable laws Regular training: Conduct legal and compliance training for employees.Risk and regulations including IP CaseInternal audit and monitoring: Set up independent internal audit to Systematic Response to CBAM Risks by Jiangsu Hengtong Electric Power Special Wire Co.Ltd.environmental labor and data
privacy laws. Non-compliance regularly assess and monitor risks.may result in fines litigation or Legal consultation: Collaborate with legal advisors for updated compliance
reputational damage. guidance. Risk Identification:
The Company conducted an in-depth study of the European Union's Carbon Border Adjustment Mechanism (CBAM)
clarifying the policy background implementation timeline and reporting requirements. Through internal workshops the
Company identified potential compliance emission reduction and market access risks across its business and production
Operational risk includes
processes. During these workshops specific issues related to carbon emission management data collection and the risks from natural disasters Business continuity plan: Ensure rapid recovery in case of incidents. implementation of emission reduction measures were further identified providing a basis for adjusting response plans and
Operational equipment failures or human Equipment maintenance and upgrade: Regularly maintain and update
Risk errors that disrupt business operational arrangements.equipment to prevent downtime.reduce service quality or
cause safety incidents. Emergency response team: Establish teams for prompt action. Response Measures:
Business continuity and Risk transfer: Use insurance to transfer certain risks.safety are critical. The Company formulated the "CBAM Emission Reduction Action Plan and Implementation Measures" and established an
ESG Working Group led by the General Manager as Group Leader with a Management Representative serving as Deputy
Leader to coordinate overall efforts. The system manager oversees project progress. Members of the group include heads
of various business modules system engineers and EHS (Environment Health and Safety) engineers enabling cross-
Financial risk involves risks Cash flow management: Ensure sufficient liquidity for operations and departmental resource integration and collaboration. This structure ensures the implementation of emission reduction in capital management plans and the closure of management processes with clearly defined responsibilities and timelines for each module.Financial investment decisions foreign
contingencies.Risk exchange fluctuations
Diversified financing: Reduce reliance on single funding sources.and financing activities. Financial audit: Conduct regular audits and risk assessments to ensure Management Outcomes:
The capital-intensive and transparency.long-cycle nature of the Through systematic organization and cross-departmental collaboration the Company has enhanced its ability to identify
industry makes financial risk Foreign exchange hedging: Apply hedging strategies in international business and respond to external carbon policy changes steadily advanced emission reduction actions ensured closed-loop
management essential. to reduce FX volatility. internal management mitigated potential compliance and trade risks and strengthened its sustainable competitiveness
and resilience in international markets.
24 25Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
1.5
Business Ethics
As an industry-leading enterprise Hengtong Optic-Electric consistently integrates high
standards of business ethics into its daily operations and management. Throughout its
global business activities the Company adheres to principles of integrity transparency
and fairness ensuring that all business decisions and operations comply with
internationally recognized business ethics standards as well as applicable laws and
regulations.Business Code of Conduct
Hengtong Optic-Electric has established a systematic and comprehensive code of conduct providing
employees with clear and explicit guidance on professional behavior and ethical standards covering multiple
key management areas.Anti-corruption and Anti-bribery
Proper Use of Company Assets
Employees should use the Company's tangible and intangible assets such as production Hengtong Optic-Electric strictly adheres to relevant international conventions and domestic laws and regulations including the
equipment information systems and intellectual property responsibly. Using these assets for United Nations Convention against Corruption the Convention on Combating Bribery of Foreign Public Officials in International
personal purposes or illegal activities is strictly prohibited. Business Transactions the Criminal Law of the People's Republic of China the Anti-Unfair Competition Law of the People's
Republic of China and the Interim Provisions on the Prohibition of Commercial Bribery . The Company consistently upholds
fairness transparency and competition as core principles continuously improves its internal anti-corruption anti-bribery and
Prohibition of Fraud and Misrepresentation anti-commercial bribery management mechanisms and establishes a comprehensive and effective system of rules and standards
to firmly safeguard compliant business operations.Employees must accurately reflect the Company's actual operations when submitting business The Company maintains a zero-tolerance stance toward all forms of bribery and corruption and strictly enforces its anti-bribery
records and financial data. Any false statements concealment of information or fabrication of policy. Employees are explicitly prohibited from directly or indirectly offering or accepting any form of bribe through third parties to
records will be strictly addressed. gain commercial benefits. Moreover all individuals or entities representing Hengtong Optic-Electric in business activities-including
but not limited to employees agents contractors subcontractors and suppliers-are required to conduct their work legally and
in compliance with regulations. The Company adopts a zero-tolerance approach toward acts such as embezzlement bribery
Avoidance of Conflicts of Interest corruption extortion misappropriation of funds occupational embezzlement and any behavior harming the Company's interests.During the reporting period no violations or illegal incidents occurred that had a significant impact on the Company's operations.The Company emphasizes managing conflicts of interest. Employees are required to remain
objective in any decision involving personal interests regularly disclose personal relationships
and financial interests related to the Company and avoid situations that could compromise fair
decision-making.An integrated modern governance system ensures the Company's steady and sustainable development
Prohibition of Improper Payments
The Company strictly prohibits bribery and corruption forbidding employees from offering or
accepting any form of improper benefit to or from third parties including cash gifts travel or A systematic compliance management mechanism ensures coordinated oversight and emphasizes
entertainment. cross-functional collaboration
Information Protection
The Company places high importance on the confidentiality of employee and customer information. Pursuing integrity in international operations the Company serves as a model of Chinese enterprises
Employees must not disclose internal company information in public or unauthorized settings. Strict
confidentiality agreements and information protection measures ensure that all sensitive information is
effectively safeguarded. Hengtong Optic-Electric's Anti-Corruption and Anti-Bribery Compliance Development Plan
26 27Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
To effectively implement its vision for business ethics and anti-corruption Hengtong Optic-Electric has established the following Building a Culture of Integrity
management framework:
Hengtong Optic-Electric continuously promotes the development of an integrity culture regularly providing anti-bribery and anti-
corruption training to all employees including part-time staff and contractor personnel. This ensures that all employees are aware
of relevant policies and are able to identify and prevent potential corrupt practices.Governance The Company has established comprehensive governance rules clearly defining business
Rules ethics and anti-corruption standards to be followed by all parties across the value chain. These rules cover all stages from contract initiation to execution. Index Unit 2024 Reporting Data
Director % 100
The Company has designed and implemented an internal control system to ensure effective Percentage of Employees Covered
oversight and compliance across the value chain: by Anti-Bribery and Anti-Corruption Senior Management % 100
TrainingCode of Conduct: Detailed guidelines on business ethics and anti-corruption behavior;
Internal
Control C ontractual Clauses: Inclusion of business ethics and anti-corruption clauses in value Other employees % 100
System chain contracts requiring partners to comply with Company standards;
Monitoring & Enforcement: Dedicated oversight team monitors ethical and compliance
performance taking timely corrective actions when issues arise.The Company has established a systematic accountability framework to investigate Compliance Management and Oversight Mechanism
Transparency any violations of business ethics and ensure proper corrective action. Comprehensive
& investigation procedures for all ethical violations. Graded responses based on investigation
Accountability outcomes including termination of employment civil liability or referral to judicial Hengtong Optic-Electric has established a comprehensive business ethics management and oversight mechanism. The Board of
Mechanisms authorities. Directors and the Audit Committee serve as the leading and responsible bodies for business ethics. The Internal Audit Department
under the Audit Committee conducts at least two audits annually on business ethics and anti-corruption practices across
Hengtong Optic-Electric including its overseas subsidiaries. Through internal audits and external reviews potential corruption
The Company actively promotes employee participation in optimizing the business ethics risks are continuously monitored with focused inspections conducted in key business areas and critical positions to ensure that
management system. Through regular collection of feedback and periodic evaluation of business ethics standards are effectively implemented in the Company's operational and management activities.policy effectiveness management policies and practices are dynamically refined to align
with the Company's global strategic development continuously enhancing governance
Continuous effectiveness and compliance.Improvement
& Employee Suggestion Channels: Dedicated channels allow employees to submit improvement
suggestions anonymously or openly which are assessed and implemented by the Internal Development Engagement and Updating of Regularly review and update the Company's compliance policies to ensure alignment with Audit Department; Policies the latest laws regulations and industry standards.G lobal Consistency: Ensures uniform implementation of business ethics policies across all
business units and subsidiaries with adjustments as necessary to comply with local laws
and regulations. Management The Company provides employees and third parties with a global multilingual anonymous
of Reporting reporting channel ensuring a high level of confidentiality and security. Dedicated personnel
Channels are assigned to handle reports safeguarding the privacy and safety of whistleblowers.Anti-unfair Competition and Anti-money Laundering Upon receiving a report the Internal Audit Department will initiate an investigation within
Investigation three days and report the findings to the Audit Committee upon completion. The Company
Hengtong Optic-Electric strictly implements the requirements of the Anti-Unfair Competition Law of the People's Republic of China Process takes strict disciplinary actions against any individuals found to have violated business
and the Anti-Money Laundering Law of the People's Republic of China establishing an internal management system committing ethics and when necessary refers cases to judicial authorities.to adhere to business ethics and fully respecting the legitimate rights and interests of market peers. At the same time we
rigorously implement anti-money laundering regulatory requirements remain highly vigilant against any illegal activities such as
money laundering or handling of illicit funds through the Company and have established routine preventive mechanisms. During Hengtong Optic-Electric's Business Ethics Supervision Mechanism
the reporting period the Company did not encounter any publicly reported litigation cases involving unfair competition.
28 29Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
Integrity and Transparency Management in the Value Chain
Hengtong Optic-Electric has established the Disciplinary and Supervisory Management Measures actively encouraging employees
external stakeholders and the public to report business ethics violations either anonymously or openly. The policy clearly
stipulates that everyone has the right to supervise and report any disciplinary or ethical misconduct negligence or dereliction of Hengtong Optic-Electric actively upholds high standards of business ethics and anti-corruption practices across its global value
duty by management personnel and employees. chain striving to ensure that all partners and stakeholders adhere to the core principles of integrity transparency and fair competition in their business activities. The Company has established a systematic governance framework and robust internal
control systems to effectively ensure the legality and compliance of its operations. In practice the Company signs a Supplier
Integrity Agreement with all suppliers clearly specifying anti-corruption and anti-bribery compliance requirements. Suppliers who
violate these provisions are subject to classified disciplinary actions such as suspension of cooperation or inclusion on a blacklist
thereby strengthening compliance management and risk prevention across the entire supply chain.Hengtong's business ethics reporting channels:
To achieve business ethics and anti-corruption objectives across the value chain the Company actively implements the following
management measures:
Email:
htjubao@htgd.com.cn(Chinese) Comprehensive Conduct regular risk assessments across the value chain to identify potential business ethics and
Risk Assessment corruption risks with particular focus on high-risk regions and partners.htgjsj@htgd.com.cn(other languages)
Supply Chain Conduct regular ethics and compliance audits on key nodes within the value chain to ensure that
Audits all partners adhere to the Company's business ethics standards.To protect the legal rights and personal safety of whistleblowers the Company strives to ensure that no employee suffers adverse
consequences for expressing concerns or reporting non-compliant or illegal behavior. Any individual or group retaliating against a Training and Provide training on business ethics and anti-corruption to suppliers and partners to ensure they
whistleblower will be subject to the Company's disciplinary measures. Education understand and comply with the Company's policies and regulatory requirements.Reporting Establish transparent and secure reporting channels that encourage employees and value
Hengtong whistleblower protection measures: Mechanism chain partners to report any unethical or potentially corrupt behavior while ensuring the privacy and safety of whistleblowers.Hengtong's Value Chain Business Ethics Management Initiatives
Personnel who have access to Personnel who improperly disclose
whistleblower information must not whistleblower information or retaliate Hengtong Optic-Electric continuously strengthens anti-corruption oversight within the supply chain by establishing a routine audit
disclose any details externally including against whistleblowers will be subject to mechanism to conduct end-to-end supervision. During the reporting period targeted audit issues were raised focusing on key
the identity of the whistleblower the disciplinary actions depending on the areas such as OEM management supplier performance evaluation procurement bidding and quotation comparison processes
content of the report or any related severity of the case up to removal from and the acceptance of raw and auxiliary materials thereby promoting the enhancement of supply chain compliance management.individuals and materials. They are also office or termination of employment. In
prohibited from alerting the involved serious cases involving legal violations
departments or individuals in advance. the matter will be referred to judicial
authorities for lawful handling.We continuously monitor fraud risks within the Company and its core business units through the corporate business ethics
reporting channels. During investigations we focus on identifying correcting and preventing operational risks aiming to hold
responsible parties accountable recover losses and close loopholes. During the reporting period the Company received a total
of 12 anonymous reports conducted detailed investigations on each and took appropriate disciplinary actions against confirmed
violations.
30 31Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
02
Leading
Innovation:
Creating Leading
Quality
Hengtong Optic-Electric continuously enhances
its technological innovation capabilities
strengthens its quality management system
and reinforces supply chain integration and
collaboration to consolidate the technological
foundation for high-quality development. At
the same time the Company adheres to a
customer-first philosophy practices responsible
marketing and consistently improves customer
experience and satisfaction striving to deliver
industry-leading product and service quality.Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
2.1 Development and Optimization of R&D Management Policies
Sustainable Innovation In 2024 the Company continued to deepen the development of its R&D management system with a particular focus on
strengthening technical management functions enhancing the standardization of external testing and building R&D team
capabilities. At the same time the Company optimized and refined its existing policies covering areas such as patent and
intellectual property management R&D incentive mechanisms industry-university-research collaboration trademark
Hengtong Optic-Electric upholds innovation as a guiding principle and regards it as a management and new product sales reporting standards. These efforts further advanced the streamlining standardization and
cornerstone of corporate development. We have established a sound R&D management efficiency of R&D processes resulting in a more comprehensive and robust R&D management support system.system strengthened R&D mechanisms and capacity building and promoted
collaborative innovation through industry-university-research partnerships to drive
breakthroughs and lead industry development. At the same time the Company R&D Capacity Building and Talent Development
reinforces intellectual property management to consolidate its R&D advantages
and technological barriers thereby enhancing the competitiveness of its innovative In 2024 the Company defined the positioning of 11 R&D
products. centers and completed the development of core R&D
platforms including high-end optics specialty fibers fiber
coatings and deep-sea integrated testing. To strengthen R&D
talent development the Company organized more than 10
series of training sessions covering over 260 participants
with topics ranging from R&D management key decision-
making and review processes and market collaboration to
Development and Upgrade of the R&D fostering an R&D-driven culture. In addition a dedicated
Management System Group task force for R&D talent development was established to conduct talent mapping and formulate annual training
plans thereby promoting the systematic development of the Inauguration of the Postdoctoral Research Station at Hengtong
core engineering team. Submarine Power Cable Co. Ltd.During the reporting period we focused on advancing the implementation of IPD 3.0 across 14 subsidiaries
incorporating process adaptation and tailoring rules. Dynamic adjustments were made in line with each
industry's development stage product characteristics and management model resulting in a more flexible
and efficient R&D management approach. At the same time we established two core decision-making
mechanisms-Business Decision (DCP) and Technical Review (TR1–TR6)-along with their evaluation elements Standards Development and Industry–University–Research
to ensure quality and efficiency throughout the entire project lifecycle from market research to product
delivery. Collaboration
The IPD methodology emphasizes market-driven cross-functional collaboration and full lifecycle Hengtong has strengthened industry–university–research collaboration integrating innovative resources from universities and
management. At Hengtong Optic-Electric we exercise strict quality and risk control across all stages-including research institutions to promote technological advancement and industrial upgrading within the sector. This collaborative model
product concept design development validation and delivery-while integrating sustainable principles not only accelerates the transformation and application of scientific and technological achievements but also injects strong
such as energy conservation green design and environmentally friendly manufacturing. This ensures a high momentum into the Company's sustainable development. During the reporting period the Company conducted a total of 40
degree of alignment between R&D activities and the Group's sustainable development goals. joint innovation projects involving 22 universities and research institutes of which 9 were industrialized 4 received support from
provincial or ministerial-level research programs and 2 achieved preliminary breakthroughs in frontier technologies. In addition
the Company actively participated in the development of international and domestic industry standards and by the end of the
reporting period Hengtong had published a total of 457 international and domestic standards.Intellectual Property Management and Protection
Hengtong Optic-Electric strictly complies with laws and regulations such as the Patent Law of the People's Republic of China
the Trademark Law of the People's Republic of China and the Copyright Law of the People's Republic of China . The Company
has established management systems including the Supplementary Provisions on Industry–University–Research Management
and the Hengtong Trademark Management Measures to standardize the creation utilization protection risk prevention and
dispute resolution of intellectual property strengthening the management of trademarks patents copyrights and other IP assets.During the reporting period Hengtong upgraded its internal patent database importing over 3000 historical patent records
including Chinese and English descriptions and certificate images and compiled more than 1200 patent certificates. By the end
of the reporting period the Company held 1417 authorized invention patents and 145 PCT international patents. In addition
to enhance employees' awareness of intellectual property protection the Company organized six IP training sessions covering
management and core R&D personnel with content including international standards compliance management and patent
quality improvement.IPD 3.0 Training
34 35Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
2.2 Strategy
Supply Chain Management To continuously enhance its supply chain management capabilities Hengtong Optic-Electric systematically identifies potential
risks and opportunities comprehensively implements responsible supply chain initiatives and constantly strengthens its ability to
deal with supply chain risks.Hengtong Optic-Electric is committed to building a stable green and sustainable supply Risk Risk Description Corresponding Solution Time Dimension1
chain and deeply integrates sustainable development elements into the entire process
of supplier access standards cooperation evaluation and dynamic management. The I nclude issues related to sustainable
Company assesses potential sustainable development risks in the supply chain and development into the evaluative criteria of suppliers and implement them throughout
urges improvements to ensure its compliance and stability striving to build a sustainable the entire l i fe cycle management of
supply chain ecosystem with commercial resilience environmental friendliness and suppliers making them an important The EU's increasingly strict policies such as assessment standard for supplier access
social value. Corporate Sustainability Due Diligence Directive dai ly management e valuat ion and
(CSDDD) Corporate Sustainability Reporting elimination;
Supply Directive (CSRD) Prohibiting Products Made with
Chain ESG Forced Labor on the Union Market and Amending Sign the Social Responsibility and Ethics
Compliance Directive/ EU Forced Labour Regulation (EUFLR) Standard Agreement with the supplier Medium-termGovernance Risks may lead to non-compliance in supplier's which clearly requires the supplier to environment and social responsibility causing promise not to hire child labor not to use
supply chain disruptions and reputation losses. forced labor not to discriminate against
Hengtong Optic-Electric has established a three-level supply chain management structure consisting of The stricter regulations will result in an increase in employees respect employees ensure
the Board of Directors the ESG Committee and the Company's Supply Chain Management Department. the Company's compliance costs. employees' health and safety guarantee
The Board of Directors serves as the highest responsible body for supply chain management and supplier's employees' salary and benefits etc;
ESG development leading the subordinate ESG Committee and relevant functional departments to R eview and confirm environmental and
jointly promote the sustainable development management of the supply chain and systematically build a social responsibility during the supplier
responsible supply chain in a standardizes manner. audit and on-site visit.Some suppliers have a high risk of irreplaceability
due to technical barriers or resource exclusivity.When the supplier fails to provide raw materials
that meet the Company's requirements in a
timely manner because of product quality Expand the resource of alternative suppliers
defect violations of law or force majeure the on a broad scale and systematically cultivate
Supply Chain Company constrained by the objective condition potential partners to reduce reliance on a
Monopoly of insufficient substitutability of suppliers may single supplier; Short-term
Risks encounter the risk of weakened execution Promote localized alternatives for materials
ability when promoting the implementation and accelerate the process of independent
of the rectification plan. Therefore when such control over key technologies.risks occur the Company's production may be
disrupted leading to failure in timely product
deliver y and subsequent impacts on the
Company's financial performance.Supplier management
Hengtong Optic-Electric attaches great importance to business Optic-Electric Logistics Management Regulations etc. so as to
cooperation with supplier continuously optimizes the supplier standardize the full-life cycle management of suppliers which
management system and strengthens the supplier audit covers supplier onboarding and audit classification and
process. The Company formulates and implements a series grading management as well as evaluation and elimination.of management systems including Hengtong Optic-Electric
Supplier Access Specifications Hengtong Optic-Electric In our cooperation with small and medium-sized enterprises
Supplier Management Regulations Hengtong Optic-Electric we always adhere to the principles of fairness impartiality
Material Supplier Performance Appraisal Specifications and transparency providing them with the same business
Hengtong Optic-Electric Procurement Bidding Management opportunities and respect as large enterprises to create a fair
Regulations Hengtong Optic-Electric Procurement Contract competition mutual beneficial market ecosystem. During the
Management Regulat ions Hengtong Optic-Electr ic reporting period Hengtong Optic-Electric did not have any
Procurement Execution Management Regulations Hengtong overdue payments to small and medium-sized enterprises.
1Time dimension: Short-term refers to within one year medium-term refers to one to five years and long-term refers to more than five years.
36 37Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
Supply Chain ESG Management
Hengtong Optic-Electric continues to deepen supply chain access phase Hengtong Optic-Electric conducts inspections in
Onboarding and Audit ESG management fully integrating ESG factors into the accordance with the Company's basic ESG-related requirements
supplier access and assessment system and works to build a for key suppliers identifies potential ESG risks and provide
supply chain ecosystem featuring shared responsibilities and a basis for judgment on supplier access. The inspection and
Onboarding standards: It is clearly stipulated in all regulation that suppliers can only apply for introduction sustainable development. During the reporting period the analysis dimensions include: ESG risks related to the supplier's
after reaching the access standards for their respective product categories covering dimensions including but coverage rate of suppliers certified by ISO 14001 Environmental region industry and commodities procurement expenditure
not limited to corporate credit production and delivery capabilities product quality environmental protection Management System reached 100%. and business relevance. We conduct a comprehensive
occupational health and safety commitment to not using conflict minerals business ethics and fulfillment of social assessment of the performance of Hengtong Optic-Electric's
2
responsibilities. We implement full-process management and control over key suppliers in terms of environment social responsibility
suppliers' ESG management and risk assessment. In the governance and business relevance.Audit process: After gaining access a small batch of samples will be made to conduct on-site audit of all suppliers.Only after passing the audit will a procurement framework agreement be signed clearly stipulating a series of
requirements such as integrity guarantee product quality intellectual property rights and supplier assessment.Only then can a supplier be regarded as a qualified supplier. Environmental Standards Social Standards
Performance assessment: For qualified suppliers monthly or quarterly performance assessments are conducted
based on the classification of supplied materials. If a supplier is not qualified as a result of the assessment a series of Shall obtain certificates such as ISO 14001 Environmental Shall obtain certificates such as ISO 45001 Occup-
rectification requirements and corresponding measures will be imposed followed by regular review and evaluation. Management System certification; ational Health and Safety Management System certification;
S hall establish environmental emergency response plans
and monitoring systems for major environmental factors; S hall establish mechanisms for occupational
health hazard identification and occupational
Shall establish effective management mechanisms for
Classification and Grading Management safety training;environmental protection waste management and other
related aspects. Shall sign the Agreement on Social Responsibility
and Ethical Standards and effectively safeguard the
Grading management: Different assessment frequencies and management mechanisms are adopted for suppliers labor rights and welfare benefits of employees;
of varying importance. Suppliers are divided into four importance levels (Level A to Level D) based on factors such
as supplier irreplaceability procurement amount and sustainable development risks. The frequency of performance Governance Standards
Shall require suppliers to responsibly use mineral
resources in every link from mining to processing
appraisals and system audits is carried out according to the importance level. transportation and sales and explicitly specify
Shall have a good business reputation and no records of that minerals and raw materials from conflict-
Classification management: Different assessment frequencies and management mechanisms are applied major illegality or accidents; affected areas are not accepted.based on different categories and properties of materials: regular materials are subject to flexible and normalized Shall sign the Integrity Co-construction Agreement and abide
management; for key materials or dominant suppliers targeted annual negotiations are conducted and annual by the business ethics of integrity and honesty.strategic agreements are signed to enhance cooperation stickiness and supply stability.Hengtong Optic-Electric's Requirements for Suppliers' Sustainable Development Standards
Evaluation and Elimination In terms of anti-corruption Hengtong Optic-Electric explicitly and our suppliers comply with the Agreement on Social
requires suppliers to prohibit any abuse of power for personal Responsibility and Ethical Standards and the requirements
gain whether by individuals or organizations including acts of sustainable development standards set by Hengtong
Continuous evaluation: The suppliers will be continuously evaluated. If the performance assessment score of their such as bribery facilitation fees fraud extortion collusion and Optic-Electric for suppliers and to prevent any ESG-related
supplied products is below 70 points for more than three times within a valid six-month assessment period the money laundering. It is prohibited to accept gifts loans fees violations. In addition in the selection of suppliers and
supply of this material will be suspended. rewards or other benefits of any form from any individual in the awarding of contracts by Hengtong Optic-Electric ESG
business activities to induce or be induced to engage in any performance will be given significant weight. When suppliers
Elimination and Blacklisting: Suppliers will face suspension elimination or inclusion in the blacklist based on dishonest illegal or breach-of-trust conduct. Regarding conflicts meet the same conditions we will give priority to choosing
the severity of their violations in the following circumstances: * Providing false information; * Bid rigging and of interest we prohibit any situation that may lead to a conflict partners with outstanding ESG performance. If any violations
collusion; * Breaching contracts during the term; * Causing severe impacts due to major quality accidents; * To be between personal interests and corporate interests. Suppliers or negative incidents in the ESG performance of suppliers
suspended for having no business transactions for more than two years; * Violating three agreements; * Violating must ensure that their decisions and actions are consistent with are identified during the review process we will require the
relevant national laws and regulations; * To be suspended eliminated or blacklisted by other companies within corporate interests and avoid harming corporate interests or suppliers to complete rectification within a prescribed time
Hengtong Group; * Falling under the circumstances specified in Hengtong Optic-Electric Management Measures for violating corporate regulations due to personal gain. limit. For suppliers with deficiencies we will provide them
"Blacklist" of External Companies or Natural Persons. with ESG capacity building and support to help them meet
In order to promote the sustainable development and shared Hengtong Optic-Electric's ESG standards. If a supplier fails to
Continuous optimization: The Company will continue to cooperate with suppliers ranked in the top two levels responsibility of the supply chain we continuously review meet the Company's minimum ESG requirements within the
based on appraisal results. For suppliers at Level C supervision for improvement support and re-assessment will be the procurement practices and business behaviors of our specified time it will be removed from the supplier list until it
conducted; suppliers at Level D will be classified as unqualified and the cooperation will be terminated. suppliers to ensure that all business activities between us meets the ESG requirements.
2H engtong Optic-Electric defines key suppliers as those that have a significant impact on the Company's product quality maintain a large supply
scale and demonstrate outstanding performance and industry-leading status in aspects such as quality cost delivery technology service green
Hengtong Optic-Electric Supplier Management Measures and sustainable development.
38 39Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
Case Green and Low-Carbon Promotion of the Supply Chain of Jiangsu Hengtong Electric Case Hengtong Submarine Submarine Cable Co. Ltd. Was Awarded the Title of "National-
Power Special Wire Co.Ltd. Level Green Supply Chain Management Enterprise"
Background and Risk Identification:
The Company has realized real-time monitoring of processes such as procurement management sales management
In the design and manufacturing of overhead stranded wires (including special conductors) aluminum rods aluminum alloy rods cable
conductors and copper alloy materials Jiangsu Hengtong Electric Power Special Wire Co.Ltd. has identified high carbon emissions inventory management and logistics information. It has established an MES supply chain system a TMS logistics
in the supply chain outdated production processes and potential social responsibility risks. The Company has formulated external platform and an SRM supplier relationship management system optimized the raw material inspection process
codes of conduct requiring suppliers to commit to complying with business ethics social responsibility environmental protection and enhanced supplier management and control capabilities and set up complete supplier quality files to achieve full
employee rights protection thereby providing direction for supply chain management and green low-carbon transformation. product traceability. Meanwhile the Company releases process information such as green procurement green
production and green recycling realizes intelligent supply chain management promotes online collaboration and
interaction between the enterprise and suppliers effectively improves the overall level of supplier management and
Response Measures: lays a solid foundation for being awarded the title of "National-Level Green Supply Chain Management Enterprise".Promote key raw material suppliers to adopt renewable energy optimize energy structures and reduce the use of fossil energy;
Improve production processes and technologies enhance energy efficiency establish waste recycling systems and reduce raw material
consumption and waste gas emissions;
R equire suppliers to implement energy-saving and low-carbon planning schemes use high-energy-efficiency equipment obtain energy
management system certification and build green factories and zero-waste factories.Management Outcomes:
Through systematic green and low-carbon management the Company has achieved carbon emission reduction and recycling in the
production of overhead stranded wires aluminum rods aluminum alloy rods and copper alloy materials. This has enhanced supply
chain sustainability effectively reduced environmental and social responsibility risks and provided support for competitiveness in
domestic and international markets.Case Implementation Measures for Green Supply Chain Management of Jiangsu Hengtong
Electric Power Cable Co. Ltd.Background and Management Planning:
Jiangsu Hengtong Electric Power Cable Co. Ltd. has formulated the Medium- and Long-Term Development Plan for Green Supply
Chain Management which clearly outlines the promotion of supply chain greening from aspects such as green supplier management
green production green recycling system construction and the establishment of green information collection monitoring and release
platforms. The Company has also set annual target indicators and specific work plans.Organization and Implementation:
The Company has established a Green Supply Chain Management Group and a Green Supply Chain Management Office which are
responsible for conducting irregular inspections and evaluations of suppliers supervising the achievement of green supply chain
management targets and indicators and promoting management closed-loop and continuous improvement.Management Outcomes:
Core suppliers are connected to the carbon management platform to achieve traceability and collaborative optimization of raw material
carbon emissions. Through systematic management the greening level of the Company's supply chain has been significantly improved Hengtong Submarine Submarine Cable Co. Ltd.which helps achieve the dual carbon goals and enhances the enterprise's sustainable development capability.
40 41Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
Conflict Minerals Management Impact Risk and Opportunity Management
Hengtong Optic-Electric recognizes that the transparency of the mineral supply chain is crucial for ensuring the sustainable
development of the industrial chain and gaining customer trust. Hengtong Optic-Electric has established a supply chain risk management mechanism covering three modules: risk identification
and assessment risk response and prevention and risk management capability improvement effectively implementing regular
Hengtong Optic-Electric strictly complies with the requirements of the China Guidelines for Responsible Management of Mineral risk control and supply chain risk response.Supply Chain and the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-
Risk Areas. It strengthens traceability requirements for suppliers of materials containing tin tantalum tungsten and gold and is
committed to not purchasing conflict minerals whose raw materials originate from conflict-affected and high-risk areas. During the
reporting period we continued to implement relevant measures to improve and enhance Hengtong Optic-Electric's responsible
procurement management capabilities.Risk Identification and Risk Response and Prevention Risk Management
Assessment Capability Improvement
Strengthen Supply Chain Due Diligence Processes
We continue to strengthen the supply chain due diligence mechanism to ensure compliance Hengtong Optic-Electric has esta- D iversification of Supplier Sources: Expand the alternative Organize special training on
with conflict minerals regulatory requirements and industry standards. By strictly implementing blished a dynamic monitoring mec- supplier resource extensively systematically cultivate potential procurement systems safety
the Conflict Minerals Reporting Template (CMRT) we systematically collect and verify supply h anism featuring regular on-site partners and reduce reliance on a single supplier. regulations and environmental
chain information fully grasp the origin countries of minerals and the sources of smelteries audits and irregular supplier visits sta n d a rd s fo r p ro c u re m e n t
and refineries and strictly check the traceability path of minerals used in products and the enabling it to fully grasp the actual T echnological Independence: Accelerate the process of personnel to systematical ly
compliance of the regulatory chain. operational status of suppliers and independent and control of key technologies by promoting e n h a n ce t h e r i s k r e s p o n s e
systematically identify and predict PCN (Porous Coordination Network) technical changes and capability of the procurement
potential risks. localization alternative solutions of materials. team.Invest in the Procurement of Alternative Materials T h e C o m p a n y c o n t i n u o u s l y S trategic Supply Relationships: Establish long-term and Conduct regular policy promotion
conducts real-time monitoring stable strategic synergy relationships with core suppliers and compliance training for
We actively seek alternative sources of minerals and promote supply chain diversification to and analysis of the global political simultaneously optimize the risk management mechanism suppliers and effectively drive
reduce dependence on conflict-affected areas. and economic environment and for supplier irreplaceability and build a supply chain security the advancement of suppliers'
market change trends to ensure system with both resilience and sustainability. sustainable development capa-
supply chain resilience and business bilities through targeted technical
continuity. guidance and designated support
Establish Non-Conflict Mineral Product Labels mechanisms.To safeguard the right to information of customers and stakeholders as well as their
sustainable development demands we have implemented and promoted conflict-free
mineral product labels for relevant products. Hengtong Optic-Electric's Risk Management Mechanism
In addition to ensure the effective implementation of the rights and interests protection system for supply chain employees Hengtong
Optic-Electric signs the Social Responsibility and Ethics Standard Agreement with all suppliers. The agreement clearly requires suppliers
Raw Material Sustainability to commit to not employing child labor not using forced labor not discriminating against employees respecting employees ensuring employees' health and safety and guaranteeing employees' salary and benefits. Meanwhile during supplier onboarding audits and
regular on-site visits we conduct special inspections on the implementation of labor rights protection clauses to ensure that the binding
In the procurement of raw material Hengtong Optic-Electric of authoritative third-party test reports the Company achieves force of the agreement is translated into practical management effectiveness.takes the environmental performance and sustainability closed-loop verification of the environmental attributes of raw
of materials as core considerations and gives priority to materials and establishes a dual guarantee mechanism.selecting environmentally friendly materials and components Indicators and Targets
that meet internationally authoritative sustainability Hengtong Optic-Electric earnestly fulfills its responsibilities
certification standards such as ISO 14001 Forest Stewardship as the "chain leader" in the industrial chain during the Hengtong Optic-Electric attaches great importance to the sustainable and responsible development of the supply chain. Aligning
Council (FSC) certification and Cradle to Grave. Currently supplier selection stage establishing a multi-dimensional with international standards it promotes the inclusion of green low-carbon and ESG performance assessments for suppliers sets
the Company has achieved 100% use of environmentally environmental access evaluation system to ensure that the target of "covering 100% of suppliers" and continuously tracks indicators related to supply chain management.friendly materials certified by the ISO 14001 Environmental partners fully meet sustainable development requirements.Management System. Through audits on-site inspections and third-party
evaluations we verify suppliers'environmental declarations Indicators Unit 2024
Hengtong Optic-Electric strictly adheres to the EU RoHS 3.0 and collect detailed information about their environmental
standard and the latest version of the REACH Regulation p o l i c i e s p ra c t i ce s a n d p r o d u c t s i n c l u d i n g t h e i r Total number of suppliers / 1212
for the environmental performance requirements of raw environmental management systems raw material sources Among them Asian suppliers / 141
materials. During the reporting period a total of 150 types of energy consumption and waste disposal in production
raw materials that comply with RoHS 3.0 standard certification processes as well as inspect environmental protection Among them suppliers from other regions / 71
were used in products at a 100% rate. At the procurement measures in their production facilities and processes. For Total number of suppliers certified by ISO 14001 / 1212
stage the Company requires suppliers to provide test reports key materials the Company actively conducts Life Cycle
issued by third-party testing institutions and takes them Assessment (LCA) to evaluate the environmental impact Number of new suppliers undergoing on-site audits / 119
as the core basis for raw material screening. Meanwhile throughout the entire cycle from raw material collection Percentage of new suppliers screened using environmental standards % 100
before product delivery the Company needs to conduct production use to disposal.environmental standard testing on finished optical cables and Percentage of new suppliers screened using social standards % 100
issues qualified third-party test reports. Through the issuance
4243
Hengtong Optic-
Electric's Conflict
Minerals Management
MeasuresHengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
2.3
Quality Control Strategy
To further ensure product quality and enhance product safety and reliability Hengtong Optic-Electric actively identifies potential
risks and opportunities related to quality.In the context of the digital and information age Hengtong Optic-Electric will continue
to forge ahead in the course of high-quality development with independent and self-
reliant science and technology. It will establish a sound quality management system and Risk/ Risk/Opportunity Description Response Method Time Opportunity Dimension
comprehensive quality control procedures continuously foster awareness of quality and
responsible marketing culture and provide customers with high-quality products and
In the production process the Com-
services. T he Company has established clear and definitive pany's products may fail to fully meet standardized processes which are regularly reviewed and
established standards or expected updated;
Risk of requirements due to factors such as human error equipment issues T he production department conducts regular patrol Deviation in
Governance the Production materials environment or methods.inspections and preventive maintenance; Short and
Process The risk of deviation in the produc-
medium-term
Q uality inspections are carried out on products to ensure
tion process may lead to quality compliance with product quality standards;
defects reduced efficiency increased
Hengtong Optic-Electric has established a sound quality governance structure mainly composed of the Board costs delayed deliveries and even T he Company organizes regular training and assessments
of Directors the ESG Committee the Quality Management Department and other functional departments. safety or compliance problems. to ensure employees are proficient in operating standards.The Quality Management Department is responsible for the overall planning and implementation of the
Company's quality work and has three subordinate modules: the Quality Technology Center the Testing
Center and the Laboratory. These modules cover quality system construction quality target formulation
capability building (laboratory testing capability quality team and digital construction) quality culture and In the global supply chain system E stablish strict supplier screening criteria and take quality
education and quality honor management ensuring the efficient and comprehensive implementation of the the Company may face product qual- as the key point of assessment;
quality management system. ity risks caused by insufficient quality control of suppliers raw material C learly specify quality requirements liability for breach of
Hengtong Optic-Electric has established a multi-level quality management system covering core business Supply Chain defects and other factors. Such risks contract and rectification clauses in contracts and require Short and Quality Risk may lead to customer complaints suppliers to provide compliance certifications; medium-term
segments such as optical fiber and cable and submarine cable with ISO 9001 and TL 9000 as the core. In product recall incidents and may
2024 by optimizing system operation integrating digital tools enhancing compliance management and also affect order fulfillment capa- Avoid reliance on a single supplier and establish a list of
meeting customized quality requirements the Company continued to strengthen certification management bilities customer trust and market alternative suppliers; formulate emergency procurement
ensured that suppliers' systems meet the standards simultaneously and support the certifications required competitiveness. plans for high-risk materials.for new product and new market expansion.There is a possibility that the Com- I dentify the core needs of customers through research
pany's products may fail to meet interviews or data analysis;
customer expectations in terms of A void exaggerated promotions and ensure that the
Customer quality leading to customer dis- products are consistent with the promotion;
Satisfaction satisfaction complaints churn or Short and
Risk damage to brand reputation. Such E stablish a complaint handling mechanism to ensure that long-term
risks may directly affect the Compa- complaints are resolved promptly and professionally;
ny's revenue market share and long-
term competitiveness. A ctively translate customer feedback into specific improvements in products and service processes.If the Company leverages technolo- T he Company has introduced advanced technologies such
Opportunity gies such as industrial internet and
as 5G F5G industrial internet and artificial intelligence
artificial intelligence it can achieve built digital factories and realized automation intelligence for automation intelligence and high and high efficiency in the production process;Technological Medium and
Upgrading efficiency in the production process. T he Company actively promotes digital transformation Such technological upgrading can long-termand Digital and has explored a new path of relying on independent help the Company improve produc-
Empowerment research and development innovation to drive the digital tion efficiency product quality re- transformation and upgrading of the manufacturing
source utilization and other aspects. industry and achieve high-quality development.Awarded as "2024 Best Organization" from Quality Control Team of SOECC
44 45Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
Product Lifecycle Management System Responsible Sales
Adhering to the previous quality management model the Company has built a comprehensive systematic and highly digital Hengtong Optic-Electric integrates responsible marketing throughout the entire sales and service process aiming to provide
quality management system covering the full-lifecycle management and control from research and development design customers with more standardized and transparent services. The Company strictly complies with the requirements of laws and
raw material procurement production and manufacturing to logistics and services. The system has improved the reliability of regulations such as the Advertising Law of the People's Republic of China and the Consumer Rights Protection Law of the People's
products and services significantly optimized the operational efficiency of the value chain and fully demonstrated the Company's Republic of China formulates systems related to responsible marketing and standardizes advertising and marketing behaviors.technological leadership and market competitiveness in the global marine communication field. During the reporting period Hengtong Optic-Electric did not have any incidents of violating product promotion and service
information norms.Quality Management Infrastructure Construction
The Regulatory Requirements for Product Promotion and Service Information
Hengtong Optic-Electric has built the largest ultra-high voltage testing and research and development center in China. During the The Company has established a joint review mechanism involving multiple departments to
reporting period it promoted 53 laboratory capability enhancement projects expanding the scope and accuracy of testing items. ensure the accuracy of technical parameters product functions and application scenarios in
promotional materials and to eliminate misleading information. For the international market
Hengtong Optic-Electric also complies with local regulations providing global customers with
Digital and Intelligent Quality Control true and consistent product and service information to maintain corporate credibility.Hengtong Optic-Electric continues to advance digital transformation and has explored a new path of relying on independent
research and development innovation to drive the digital transformation and upgrading of the manufacturing industry and achieve Handling Mechanism for Violations of the Regulatory Requirements for
high-quality development. Through technologies such as 5G artificial intelligence digital twin and industrial internet we have Product Promotion and Service Information
realized the automation precision and continuous optimization of the production process and built the first "World Lighthouse
Factory" in the global optical communication industry. The Company has established a compliance supervision mechanism to promptly handle
violations related to product promotion and service information. Upon receiving complaints
Meanwhile the digital factory has realized digital twin of the production and manufacturing process and full-lifecycle quality we immediately initiate investigations assess the severity take corrective measures and
traceability. By leveraging MES and QMS systems we have achieved full traceability of batches and orders from raw materials pursue accountability in accordance with regulations. The Company also regularly reviews and
to finished products enabling rapid identification of problems and their scope of impact. Through the "one item one code" updates compliance policies to ensure alignment with legal requirements and market changes.management mechanism the Company has realized full-process traceability from raw material supply to product delivery
significantly improving management efficiency and reducing resource waste and environmental pollution.Hengtong Optic-Electric's Compliance Marketing Management Measures
In addition we have developed a quality big data early warning and monitoring platform and quality digital employee applications
deepened data-driven quality prediction and closed-loop improvement and strengthened collaborative management of supply In addition Hengtong Optic-Electric regularly conducts internal compliance promotion and education requiring employees to
chain quality. adhere to responsible marketing practices when representing the Company's brand and services and to ensure the transparency
accuracy and comprehensibility of sales information.Case Hengtong Optic-Electric has been selected as an Outstanding Intelligent Factory
Hengtong Optic-Electric has built a digital factory based on "all-optical network + AI" by introducing advanced
technologies such as 5G F5G industrial internet and artificial intelligence realizing automation intelligence and high
efficiency in the production process. The project includes a total of 10 digital and intelligent application scenarios
including 3D digital twin factory construction F5G + 5GA fixed-mobile convergence industrial network application
discrete process digital design and intelligent visual online inspection. The implementation of these application Training and Management and Performance Assessment
scenarios has achieved a 100% numerical control rate and 100% networking rate for key equipment. A significant Continuing Education Supervision Mechanism and Incentives
reduction in carbon emissions per unit of output enabled T he Company provides systematic The Company has implemented a H engtong Optic-Electric incorporates
the enterprise to achieve remarkable improvements training for all sales staff covering comprehensive management and compliance performance into the
in production efficiency product quality resource r e l e v a n t l a w s a n d r e g u l a t i o n s supervision mechanism to ensure performance assessment of sales
utilization and other aspects. compliance policies and industr y that sales staff strictly comply with staff and compliance directly affects
best practices. The training includes compliance requirements in their daily employees' assessment results. This
On January 9 2025 the public announcement of a variety of learning formats to help work. The compliance behaviors of mechanism not only strengthens the
the first batch of the list of Outstanding Intelligent sales staff understand and apply the sales team are supervised by their compliance awareness of the sales
Factories by the Ministry of Industry and Information compliance requirements. In addition directors. Additionally the Company team but also helps the Company
Technology of the People's Republic of China concluded. to onboarding training the Company h a s e sta b l i s h e d a n a n o n y m o u s maintain a good reputation in the
Hengtong Optic-Electric was included in the list due also regularly provides continuing report ing channel to encourage market.education for in-service sales staff to employees to report any potential
to its outstanding intelligent manufacturing level ensure they are aware of the latest violations. Regular internal audits
and remarkable achievements in transformation and market developments and compliance further ensure the implementation of
upgrading. requirements. the Company's compliance policies.
46 47Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
Impact Risk and Opportunity Management Indicators and Objectives
Hengtong Optic-Electric has established a quality control process covering three core modules: risk identification and assessment
risk response and prevention and improvement of risk management capabilities effectively implementing regular quality control
and quality risk response.Quality Objectives:
Risk Identification and Assessment Continuously improve product yield rate and customer satisfaction strengthen full-process quality management
capabilities and promote the building of quality culture for all employees
Through full-process monitoring and digital platforms quality risks in production supply chain and product
usage links are identified and assessed and potential business and financial impacts are analyzed.Risk Response and Prevention Hengtong Optic-Electric attaches great importance to quality control sets and adheres to quality objectives and continuously
monitors quality indicators such as yield rate of key processes qualification rate of laboratory testing and reduction range of
Quality Incident Response Mechanism: Establish a rapid response and handling process to ensure timely
rectification of problems; customer complaint rate so as to ensure the effective implementation and continuous optimization of quality management. During the reporting period Hengtong Optic-Electric had no major product recall incidents.Quality Risk Prevention Measures: Continuously improve processes using Six Sigma lean management and
digital tools to prevent quality incidents;
Product Maintenance and Recall Mechanism: Conduct full-lifecycle monitoring of products to ensure timely
recall and maintenance of defective products.Risk Management Capability Improvement
C onduct internal and supplier quality training during the reporting period the number of training participants
reached 5407 with a total of 86630 class hours;
Regularly organize quality monthly activities excellent quality project selection and quality sharing activities
to strengthen quality awareness among all employees.
48 49Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
2.4
Customer Service and
Information Protection
Hengtong Optic-Electric is committed to creating a professional responsible and high-
quality customer service experience. Based on a sound service system we always
earnestly listen to customers' voices promptly respond to their demands effectively
protect their privacy and strive to create the best service experience for every customer.Customer Service and Satisfaction
Hengtong Optic-Electric adheres to the service With after-sales service and engineering service as
idea of "Full-staff Service Touching the Customers the core business pillars our company continuous-
and Sincere Forever" and has formulated internal ly strengthens the rapid response and emergency
systems to systematically standardize the infor- handling mechanism for customer complaints To accurately identify customer pain points and actively help resolve their practical difficulties Hengtong Optic-Electric conducts
mation transmission of customer complaints and and market emergencies and has established a customer satisfaction surveys every six months covering all customers' companies. During the reporting period based on an in-
the customer complaint handling process such strict standard that major customer complaints depth analysis of detailed survey results Hengtong Optic-Electric achieved a customer satisfaction score of 96.39 which reflects
as the Regulations on Customer After-sales Ser- must be responded to within 12 hours. During the the Company's continuous efforts and value in understanding customer needs improving service response and enhancing
vice Management System Management System reporting period the Company received a total of problem-solving capabilities.for Emergency Handling Measures for Customer 38 complaints related to products and services all
Complaint Management and Special Process for of which were answered 100% and successfully re-
Customer Complaints Returns and Exchanges . solved.Case Collaboration to Enhance Customer Experience
After-sales Service - Engineering Services -
Global Service Network Professional Engineer Team The Company fully understands that customer service is closely linked to product quality. During the reporting period
we continued to strengthen exchanges with various partners in terms of product quality and technology to ensure the
T o ensure customers can consult product information T he Engineering Services Department of Hengtong advancement of technical solutions and rapid response to quality issues so as to more accurately meet customer needs
and feedback product usage without barriers all Optic-Electric is composed of professional and provide excellent product and service experiences.service organizations of Hengtong Optic-Electric have engineers ensuring that engineering failures are
regional managers and customer managers and repaired and resolved promptly and providing
provide 24-hour free services; strong technical service support to customer in
various regions;
The Company provides in-depth services such as
customer follow-up visits and customer training. It During the product quality guarantee period
conducts surveys on customers' service needs and the Company dispatches technical personnel
consumption needs every quarter designs targeted to the site in a timely manner to handle quality
training systems for customers assigns technical issues; after the product quality guarantee
experts with professional theoretical and practical period technical personnel will be dispatched
operation experience to conduct training and immediately to the site for handling. A response
provides on-site installation guidance and technical will be made within 0.5 hours based on the
training for customers' technical personnel. actual situation to assist in resolving the issues.
50 51Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
Information Security Protection
Case Recognition Reputation and Awards from Key Customers Hengtong Optic-Electric attaches great importance to network security Regulations and the Hengtong Trade Secret Management Regulations
management. It comprehensively improves information security level continuously building a solid information network security barrier.through a series of measures including strengthening the construction During the reporting period all the Company's information security
During the reporting period the Company's service quality has been highly recognized by customers. In the future the of information security systems enhancing technical protection frameworks have obtained ISO 27001 certification.Company will continue to strengthen the improvement of customer service capabilities accelerate service response capabilities and optimizing emergency response mechanisms. We
speed and provide customers with excellent products and services. strictly comply with laws and regulations of the operating location Hengtong Optic-Electric has established a sound information security
such as the Data Security Law of the People's Republic of China and protection system. Under the supervision and management of the ESG
the Personal Information Protection Law of the People's Republic Committee at the Board of Directors level the Company has set up a
of China. Guided by the Hengtong Group Information Security and special Information Security and Confidentiality Committee to ensure
Confidentiality Management Regulations we have formulated internal the effective implementation of information security and privacy
systems including the Hengtong Technical Data Confidentiality Control management. During the reporting period Hengtong Optic-Electric did
not experience any information leakage or cybersecurity incidents.Implement the policies Review and approve Provide resources Review and supervise Supervise the
laws and regulations the Company's for the Company's major matters related operation of
on confidentiality confidentiality work confidentiality system to the Company's confidentiality work in
issued by the state and plans and annual work support and promote confidentiality work each centers/business
the industry arrangements the implementation divisions and modules
of the Company's
confidentiality work
Main Responsibilities of Hengtong Optic-Electric's Confidentiality Committee
"Outstanding Partner" from Dongfang Electric "2024 Outstanding "2024 China Mobile Tier-1 Centralized Purchasing In terms of operational processes and supplier information security and encryption mechanism for super administrator accounts. Through the
Wind Power Co. Ltd. Supply Chain Partner" Outstanding Supplier (Grade A)" from China privacy management Hengtong Optic-Electric implements information synergy of system construction and technical control the Company
from China Energy Mobile Communications Group Co. Ltd. management for processes such as business order placement and has significantly improved the information security management level
Engineering Co. Ltd. contracts. During the management process dedicated accounts are and overall protection resilience.assigned for operations and different account permissions are set
according to different levels. Employees in key confidential positions In 2024 Hengtong Optic-Electric continued to improve its data security
are required to sign confidentiality agreements with the Company to and privacy protection system. On the basis of the existing Technical
earnestly fulfill their responsibilities for data and information security Data Confidentiality Control Regulations and in line with the Personal
protection. In the event of any breach of the agreement the Company Information Protection Law and industry regulatory requirements
can further verify through internal and external resources and provide the Company focused on strengthening customer privacy protection
relevant evidence to hold the responsible personnel liable for breach clauses and clarified the full-lifecycle management standards for
of contract. During the reporting period Hengtong Optic-Electric did data collection storage transmission and destruction. The Company
not have any cases involving violations of customer privacy or loss of ensured customer data security through encryption technology
customer data. anonymization processing and strict access control mechanisms
and has established real-time monitoring and emergency response
We adhere to the principle of transparency and openness and maintain mechanisms. It conducted regular cyber security drills to ensure the
full communication with customers regarding information security and rapid identification and handling of information security threats
privacy protection mechanisms to ensure that customers are aware continuously improving the information security management
of the nature and purpose of the information we obtain as well as the level. During the reporting period the Company carried out special
retention period of relevant information. We inform customers that drill activity for phishing emails for all employees in the middle and
they have the right to decide on the extent and manner in which their the end of 2024 sending more than 10000 phishing emails to test
relevant information is collected stored and used. Meanwhile we employees' cyber security awareness and protection capabilities.clearly specify that when collecting information customers have the The Company also provided internal security training for employees
right to choose the "agree" or "opt-out" option. Additionally customers effectively enhancing their self-protection awareness and reducing
retain the relevant right to apply for access to the data held by the related risks. Hengtong Optic-Electric irregularly organized company-
Company at any time to apply for the transmission of their data to wide information security training to foster a company-wide culture of
other service providers at any time and to apply for the correction or information security and privacy protection. In addition it conducts
deletion of their data at any time. annual company-wide training on required knowledge and skills in
areas such as information management software management IT
To ensure the overall information security of Hengtong Optic-Electric management and security management. This training strengthens
"2024 Group-Level Outstanding Supplier" from China "2024 Gold Supplier" from JONHON Optic-Electric the Company has established an incident response procedure. It employees' familiarity with information systems personnel
Telecom Group Co. Ltd. Technology Co. Ltd. conducts response tests semi-annually and carries out penetration management systems and IT outsourcing supplier management
tests and vulnerability analysis irregularly to continuously strengthen raises awareness of software copyright security helps employees
the information security protection capabilities. master relevant IT processes and comprehensively improves the
In 2024 the Company entrusted a third-party institution to conduct information security protection capabilities of all staff.penetration testing on the internet-side business systems actively Meanwhile the Company has gradually strengthened the reporting
identifying and promptly addressing security vulnerabilities. In management of security incidents established an information security
response to these issues the Company has taken the following risk reporting channel for all employees and taken information
measures: first it has improved its password management system security incident responsibilities as an important reference for
strictly implemented regular inspections and required the use of employee performance evaluation. It has built a corporate culture and
complex password combinations; second it has formulated interface mechanism that values and protects information security effectively
security inspection standards to prevent unauthorized access; safeguarding customers' privacy against being leaked.meanwhile it has implemented a whitelist login and password
52 53Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
03
Low-Carbon
Development:
Illuminating a
Green Future
To actively respond to the national strategic
goals of "carbon peaking and carbon neutrality"
H e n g t o n g O p t i c - E l e c t r i c u n s w e r v i n g l y
integrates sustainable development and green
development into the Company's long-term
strategic planning. We are well aware that
while pursuing technological leadership and
capacity improvement ensuring environmental
friendliness and efficient use of resources is
an important cornerstone for the Company to
achieve sustainable development goals and
lead the industry's green transformation. As a
leading enterprise in the industry Hengtong
Optic-Electric actively implements the Science
Based Targets initiative (SBTi) promotes the
construction of near-zero-carbon factories and
realizes intelligent monitoring and data-driven
carbon emission management relying on a digital
energy management platform. In the process of
green transformation Hengtong Optic-Electric
keeps up with global policy and technological
upgrading trends continuously strengthens
cooperation and exchanges with leading domestic
and foreign enterprises in the fields of green
innovation clean energy and energy-saving
technologies comprehensively improves green
manufacturing capabilities assists the Company's
upgrading towards high-end intelligent and
green development and achieves the coordinated
development of enterprise operations and
environmental protection.Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
3.1
Environmental Protection and
Management
Environmental protection is not only a social responsibility of an enterprise but also an
inevitable choice to ensure its long-term development. Hengtong Optic-Electric regards
environmental protection as the cornerstone of its survival and development actively
undertakes the responsibility of reducing environmental pollution strictly complies with
environmental laws and regulations proactively seeks innovative solutions that exceed
standards and strives to minimize the negative impact on the natural environment
during production activities.Environmental Management System We attach importance to the development and management of the environmental compliance system actively participate in the
development of environmental compliance for projects and continuously strengthen the full-process compliance management of
In conducting business activities we strictly comply with relevant operation and eligible for certification have obtained a certificate the Company's new reconstructed and expanded projects.laws and regulations and strive to minimize environmental of ISO 14001.impact. Hengtong Optic-Electric strictly adheres to domestic
laws and regulations such as the Environmental Protection Law Hengtong Optic-Electric has established a three-level
of the People's Republic of China the Environmental Impact environmental management and governance structure
Before project During project After project
construction construction construction
Assessment Law of the People's Republic of China and the consisting of the Board of Directors the Environmental Social
Environmental Protection Tax Law of the People's Republic of and Governance (ESG) Committee and the ESG Working Group.China as well as global environmental laws and regulations With the Board of Directors as the supreme responsible body C onduct feasibility studies A dhere to the priority of B efore putting into formal
in overseas operating locations including the International it holds the final decision-making power on matters related to and environmental impact environmental assessment production independently
Environmental Law the Environmental Liability Directive environmental policy formulation target setting and review of assessments for new projects and strictly comply with the complete relevant procedures
and the Industrial Emissions Directive . We have established a environmental work progress. Meanwhile we have formulated pollution prevention and such as the acceptance
management system in accordance with the requirements of green incentive mechanisms and accountability mechanisms After confirming feasibility control measures specified in inspection of environmental
the ISO 14001 Environmental Management System standard to around indicators such as resource consumption environmental prepare environmental impact environmental assessment protection facilities
guide the standardized environmental management work at impact and ecological benefits linking the performance statements environmental documents
various operating locations. During the reporting period 100% of of relevant management personnel to the achievement of impact reports and fill
Hengtong Optic-Electric's production bases that were in stable environmental indicators. in environmental impact During the construction process
registration forms in accordance the "Three Simultaneities"
with relevant regulations system is strictly implemented
which means that pollution Supreme Responsible Body for Environmental Matters O btain environmental impact prevention and control facilities
assessment approval for new are designed constructed and
projects after ensuring feasibility put into use simultaneously with
R esponsible for overseeing the implementation of environmental and compliance the main project
management work
Board of
Directors R esponsible for formulating and reviewing the progress in achieving Hengtong Optic-Electric Environmental Compliance Construction Management Process
environmental management objectives and the environmental
performance of subordinate companies and reports to the Board of To further ensure environmental compliance we regularly Hengtong Optic-Electric did not have any incidents of
Environmental Social Directors regularly engage qualified third-party institutions to conduct regular violating environmental laws and regulations.and Governance (ESG)
Committee external environmental audits on environmental impact
aspects such as the Company's environmental legal In addition Hengtong Optic-Electric has always adhered to
Responsible for coordinating the specific implementation of compliance implementation of environmental management the concept of environmental protection persisted in green
environmental management in various departments with relevant policies and risk control measures in accordance with the operations continuously promoted the construction of green
ESG Working Group functional departments specifically implementing environmental ISO 14001 standard every year. Through a combination of factories and strived to achieve resource conservation and
management matters related to frontline production internal self-inspections and external supervision we audit environmental protection in daily operations. We advocate
all operating locations covering 100% of all main businesses low-carbon office and green lifestyles encourage employees
Execute environmental pollution risk inspections emergency response to ensure the effectiveness of the Company's environmental to practice the concept of environmental protection in
procedures for unexpected incidents and reporting work management system and earnestly fulfill our commitment work and life aiming to reduce environmental impact while
to environmental protection. During the reporting period improving operational efficiency.Hengtong Optic-Electric Environmental Management Structure
56 57Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
Environmental Risk Management 3.2
Hengtong Optic-Electric proactively identifies environmental We have formulated the Enterprise Emergency Plan for
impacts related to its own production and operations Environmental Pollution Accidents to ensure that emergency Climate Change and Carbon
and has established an environmental emergency risk response measures are carried out in an orderly manner
management system featuring coordinated cooperation and when major sudden environmental accidents occur so as to Neutrality
clear division of responsibilities among the Control Group mitigate and eliminate the hazards caused by such accidents.Rescue Group Fire-Fighting Group Evacuation Group Alert In daily operations we also regularly conduct supervision
Group and Monitoring Group to respond to environmental and inspection of environmental hazards in each production Against the background of global climate change and the national strategic goals of
risks in a timely manner. The Company regularly conducts workshop. We register the problems found and rectify them "carbon peaking and carbon neutrality" Hengtong Optic-Electric has always adhered to
environmental pollution risk inspections to identify potential in a timely manner. After rectification we recheck to confirm a sustainable development strategy actively promoted low-carbon operations and green
environmental risks and implements effective management that the rectification is in place ensuring the implementation
measures to continuously reduce the environmental impact of the safety and environmental quality responsibility system innovation. We striving to optimize resource utilization reduce carbon footprint and drive
of its business operations. for all projects. environmental protection technology innovation to contribute to the achievement of carbon
neutrality goals. With reference to the framework of the Task Force on Climate-related
Financial Disclosures (TCFD) and the requirements for preparing sustainability reports of
Case Hengtong Optic-Electric Emergency Drill for Chemical Leakage the Shanghai Stock Exchange we carry out climate risk management from four dimensions:
"Governance - Strategy - Management of Impacts Risks and Opportunities - Indicators and
In 2024 Hengtong Optic-Electric conducted an emergency drill for chemical leakage simulating the handling of a sudden Targets".environmental incident in the chemical intermediate warehouse. The drill covered response procedures including leakage
control personnel evacuation and pollution isolation and invited third-party experts to conduct on-site assessment
and guidance. Based on the results of the drill and assessment the Company strengthened the cross-departmental
cooperation mechanism improved the emergency plan and emergency measures for chemical storage areas and further Governance
enhanced the level of environmental emergency management.A sound management structure is the fundamental guarantee for addressing climate risk issues. To advance the implementation
of climate-related strategies and risk management matters and to execute work in response to climate change Hengtong Optic-
Electric has established a three-tier climate change governance structure: "Board of Directors – Environmental Social and
Biodiversity and Ecosystem Conservation Governance (ESG) Committee – ESG Working Group".While pursuing technological innovation and industrial The Company continues to advance biodiversity assessments Board of Directors
development Hengtong Optic-Electric is committed to in certain regions particularly in areas where its production
protecting the ecological environment and biodiversity bases are located by leveraging scientific data Geographic Overall responsibility for formulating and reviewing systems
avoiding damage to forests ensuring that the wood and Information System (GIS) tools and collaborating with and policies related to climate change issues as well as leading
packaging materials used in its production come from local environmental organizations to analyze the potential and supervising matters concerning climate change
sustainably managed forests and reducing the negative impacts of its operations on ecosystems and species. In
impact of its business activities on biodiversity. We adopt addition we are committed to adopting environmentally
more sustainable resource management and operational friendly technologies to reduce reliance on and consumption
strategies integrate ecological protection needs into of natural resources. Meanwhile we actively participate
project planning and expansion processes and also require in biodiversity conservation projects promote ecological
our suppliers to comply with the same environmental restoration and species protection and contribute our efforts Environmental Social and Governance (ESG) Committee
standards. to building a beautiful future where humans and nature Responsible for researching strategies related to climate
coexist in harmony. change formulating goals and evaluation mechanisms making
recommendations to the Board of Directors and reporting to the
Board of Directors on a regular basis
ESG Working Group
Responsible for formulating climate change response measures
and coordinating the specific implementation of various
departments
Hengtong Optic-Electric Three-Tier Climate Change Governance Structure
58 59Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
To ensure the performance skills and competence of Board of and development trends related to climate-related risks Hengtong Optic-Electric has established a climate change reduction carbon management tools and intelligent energy
Directors members the Company as needed invites external and opportunities and enhance their ability to perform response strategy guided by a sustainable strategy and carbon management platforms continuously improving
experts to conduct training and knowledge dissemination duties on climate change issues. We have incorporated the supported by sustainable technologies and centered on the energy efficiency and resource utilization level of the
related to climate change for the board members and the performance targets of climate change into the performance green mechanism guarantees providing solid support for industrial chain. Meanwhile Hengtong Optic-Electric has
heads of the relevant functional departments responsible for appraisal system of relevant management personnel to drive the coordinated advancement of high-quality development established a carbon emission accounting mechanism
sustainable development matters. In the future Hengtong the continuous improvement of climate-related management and global climate governance goals. Hengtong Optic- carried out climate scenario analysis and has gradually
Optic-Electric will further formulate detailed training plans work and performance. Electric continues to increase investment in new energy explored the path of internalizing carbon price management.to ensure that relevant members understand knowledge clean energy and green manufacturing promotes the low- In addition the Company actively participates in the
carbon transformation of the energy structure and gradually formulation of domestic and international green standards
reduces reliance on traditional fossil energy. At the technical promotes green finance and low-carbon investment and
level relying on the independent research and development works with upstream and downstream partners to build a
Strategy advantages the Company actively develops and promotes green supply chain ecosystem.key technologies related to energy conservation and emission
Hengtong Optic-Electric adheres to the principle of "Leading high-quality development with technology driving low-carbon
transformation through innovation" and is committed to building a world-leading enterprise in communications and energy
interconnection. The Company focuses on areas such as green manufacturing green products green supply chains green Establish and improve O ptimization and I ntensify the dual control of S trengthen energy
operations green power natural carbon sinks and CCUS. We accelerate in-depth layout in fields including marine energy clean the management system upgrading of industrial energy consumption intensity conservation emission
energy and strategic emerging industries and systematically build diversified solutions to tackle climate change. Meanwhile and mechanisms structure and total amount reduction and energy
the Company has established an ESG sustainable development system a carbon management system a digital and intelligent E nhance the capability Prioritize the I mprove energy utilization efficiency and enhance
management platform and a professional team providing solid support for the efficient implementation and long-term evolution of carbon management development of efficiency basic research
of climate-related strategies. statistics and green and low-carbon C ontrol fossil energy P romote the industrial
monitoring industries consumption application of cutting-
Strengthen the Develop non-fossil energy edge technologies
development of Deepen the reform of energy Research and develop professional teams systems and mechanisms advanced and applicable technologies
and processes
Building a world-leading optical communication and new energy
enterprise with high-quality development led by technology and low- Green Energy
carbon transformation driven by innovation Industry Optimization
Deepen green strategy and forge green Accelerate low-carbon transformation Strengthen
premium of traditional businesses and drive the high-quality Governance Low-Carbon
development of new businesses Technology
Green Green Green Action
Manufacturing Products Supply Chain Green and
Marine Strategic
Green Goals
Energy Emerging
Clean Building Low-Carbon
Industries Energy Investment
Green Operation Green Natural Carbon
Power Sink/CCUS
Low-Carbon Green
I mplement full-scale Transportation Development
low-carbon design for
new buildings
ESG Sustainability System Carbon Management Digital and Intelligent Professional
C ontinuously optimize
the energy consumption Development of low- Strengthen planning System Management Platform Team structure of buildings carbon logistics guidance
C ontinuously strengthen Guidance on low-carbon O ptimize the regional
the renovation of travel methods layout of industries D evelop green finance
energy-saving and low- U tilization of low-carbon G uidance on green I mprove low-carbon
Hengtong Optic-Electric Green Low-Carbon and Sustainable Development Strategy carbon buildings transportation tools production and lifestyle investment policies
60 61Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
Climate-Related Risks and Opportunities Risk Category Risk Parameters Risk Description Duration Strategic Response Measures
Referring to the Task Force on Climate-related Financial Emissions by 2050 (NZE)" and "Stated Policies Scenario T o combat climate change low-carbon
Disclosures (TCFD) framework and taking into account its (STEPS)" were used as references. These risks were then materials will gradually replace existing
operational realities Hengtong Optic-Electric has identified prioritized based on their likelihood and potential impact products while low-energy equipment and
more advanced energy-saving technologies Explore pathways for low-carbon a list of climate risks and opportunities and carried out across different time horizons: short-term (0–1 year) medium- Low-carbon material and technological
corresponding risk identification work. To assess physical term (1–5 years) and long-term (beyond 5 years). Tailored Technology technology and processes will gain broader investor Medium and attention and policy support. This may lead long term transformation introducing highly
climate risks representative concentration pathway (RCP) response measures have been developed and implemented transition to risks such as reduced liquidity of existing efficient energy-saving technologies
greenhouse gas emission scenarios were applied. For according to the specific characteristics of each type of assets and increased costs associated with or production equipment
transition risks related to climate change the "Net Zero climate risk. the transition to low-carbon materials and
technologies
W ith customers' increasing attention and C losely track and investigate
preference for the impact of climate change changes in customer demand for
and low-carbon living Hengtong Optic-Electric energy-saving and green product
will face accelerated deployment of low- services and promptly adjust the Representative Concentration Pathway RCP8.5: A scenario in which the global average temperature rises by more than Shift in customer
preferences carbon transformation progress resulting in
Medium and industrial layout
4℃ above pre-industrial levels by 2100 i.e. the "4℃ or above warming" scenario; risks such as increased budget threats from long term I ncrease the budget for providing
competitors offering low-emission products Representative Concentration Pathway RCP4.5: A scenario in which the global average temperature rises by less than 2℃ transformational product services to reduced market share and decreased demand
above pre-industrial levels by 2100 i.e. the "2℃ or below warming" scenario; Transition meet customer needs and actively for goods and services
Risk analyze price fluctuation trendsMarket
S tated Policies Scenario (STEPS): A scenario based on the current policies in place across various industries and A ctively explore energy-saving and
countries including announced policy plans that are already being implemented worldwide; consumption-reducing measures in T he prices of resources such as energy the production process and strive
N et Zero Emissions by 2050 Scenario (NZE): A scenario in which the global energy sector reaches net zero carbon water and equipment will increase due to to achieve the recyclable utilization
dioxide emissions by 2050 without relying on emission reductions from outside the energy sector to achieve this goal. Rising raw the impact of climate change which will Medium and of resources as much as possiblematerial costs subsequently affect the procurement costs long term
of production raw materials and increase the R each a consensus with
transportation costs in the supply chain partners on low-carbon supply
chain transportation to reduce
procurement costs
Strengthen disclosure requirements
S takeholders are paying increasing attention related to sustainable development Investors are
Risk Category Risk Risk Description Duration Strategic Response Measures increasingly and importance to climate change issues. If
and climate change to ensure
Parameters complianceReputation concerned Hengtong Optic-Electric fails to meet investor Medium and
about negative expectations it may face divestment and a long term Frequent extreme weather events will Implement a management on-call Closely track feedback from downgrade in ESG-related index ratings in
cause employee commuting difficulties system enhance weather forecast feedback customers and other stakeholders the capital market
Extreme weather disrupt supply chain transportation monitoring issue early weather
regarding their requirements related
and lead to equipment malfunctions warnings and promptly open to addressing climate changeevents such as Short and
Acute typhoons floods impacting operational continuity and medium company guest accommodations
extreme heat and resulting in reduced revenue term for free use by employees during
cold waves extreme weather events Chance Category Chance Description Duration Impact on Hengtong Optic-ElectricTyphoons and extreme cold may damage
communication equipment such as laid Develop emergency response H engtong Optic-Electric can establish a distributed
cables plans for extreme weather events A gainst the backdrop of carbon peak and photovoltaic revenue model centered on "self-
Physical (severe typhoons torrential rains/ neutrality goals clean energy production generation for self-consumption with surplus
Risk flooding freezing rain/snow etc.) Resource Energy and storage technologies are maturing. Short-term and power fed into the grid" by increasing its holdings in
and prepare emergency facilities Slow changes in temperature and rainfall Efficiency efficiency Increasing holdings in new energy assets medium-term new energy assets such as distributed photovoltaic in advance
may lead to the relocation of some such as distributed photovoltaics can help projects. This approach enables the Company The Impact of
potentially affected operational sites Prior to the flood season and continuously enhance energy efficiency to meet its own energy needs while generating temperature
Chronic precipitation thereby increasing operational costs
additional revenue
Long term typhoon season ensure all
and sea level rise typhoon and flood prevention The gradual rise in sea level may cause supplies and related preparations Low- China has added approximately 50% of the
T o achieve the dual carbon goals China's ongoing
variations submarine optical cables to malfunction are completed according to the Energy emission world's new renewable energy generation energy structure transformation has created a
due to changes in pressure Company's emergency plan while Sources energy capacity in recent years with annual additions Long term favorable environment for Hengtong Optic-Electric
conducting tabletop exercises in sources reaching about 140 GW. The grid's emission to advance its own energy transition and enhance
advance factor has been declining year by year energy conservation and emissions reduction
Stay informed about and comply T he EU's "Fit for 55" legislative package outlines
As national carbon reduction policies and with laws and regulations
I n order to achieve the climate and
environmental goals of reducing greenhouse development targets for alternative fuel international carbon emission requirements issued by relevant domestic and
Stricter emissions become increasingly stringent Hengtong international regulatory bodies gas emissions by 55% and saving 32.5% of
infrastructure renewable energy hydrogen
and decarbonized gas markets. These initiatives
disclosure Optic-Electric faces growing demands from regularly identify applicable Transition Regulations Medium Products
Customer energy by 2030 compared to 1990 levels the
management regulators and investment institutions to carbon emission policies and demand European Commission has proposed a "Fit for
present new market opportunities for Hengtong
Risk and policies and compliance disclose corporate emission reduction term Services for green 55" legislative package. The proposal covers
Long term Optic-Electric in communications offshore wind
Strengthen internal carbon products multiple areas such as renewable energy power and new energy facilities. Hengtong Optic-requirements targets measures and outcomes. This may accounting management and Electric will actively invest in clean technology R&D
lead to potential risks such as project delays energy efficiency buildings land use and the enhance the carbon emission carbon emissions trading system involving 13 enhance relevant production capacity and supply substantial fines and compliance costs accounting system for production specific legislative proposals capabilities and provide customers with superior
processes green products
62 63Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
Highlights of Implementation Measures Additionally Hengtong Optic-Electric continues to advance its digital product lifecycle assessment (LCA) practices. Leveraging its self-developed digital platform the Company has achieved management across dimensions including resource utilization
ecological impacts (including carbon emissions) and human health risks. Particularly in strategic sectors such as deep-sea and
Hengtong Optic-Electric remains committed to driving green transformation through technological innovation focusing on clean energy Hengtong Optic-Electric has prioritized LCA evaluations driving green innovation and sustainable development. The
energy energy conservation consumption reduction and low-carbon product design to continuously enhance environmental Company's digital platform has implemented the following innovative measures in carbon emissions and carbon footprint
performance throughout the entire product lifecycle. By the reporting period the Company has been recognized with 7 National management:
Green Factories 4 National Green Supply Chain Enterprises 3 Industrial Product Green Design Demonstration Enterprises and 8
Provincial Green Factories. It has accumulated 7 National Green Products with 9 subsidiaries completing ISO 14064 organizational
carbon emissions verification and 48 products achieving ISO 14067 product carbon footprint certification. Comprehensive Coverage of Core Products
Energy-saving Technology Hengtong Optic-Electric applies LCA to high-value environmentally sensitive core products such as submarine cables Clean Energy Technology Low-carbon Product Design and ultra-high voltage equipment. By focusing on their environmental impact throughout the entire lifecycle Hengtong
has enhanced its competitiveness in the global market and met international environmental requirements.The Company actively develops Continuously advance energy- Launch low-carbon design
and applies clean energy saving technology research and initiatives utilize low-carbon
technologies to reduce energy development and application materials optimize product
consumption and achieve energy enhance the energy efficiency designs and reduce the carbon Simplified Application
structure transformation of production equipment and footprint throughout the product
reduce energy consumption lifecycle For conventional mass-produced products Hengtong Optic-Electric has streamlined the LCA implementation process by
integrating digital tools driving the green transformation of its supply chain.Hengtong Optic-Electric is comprehensively advancing its digital transformation by deeply integrating smart manufacturing
industrial internet and artificial intelligence technologies. This initiative builds an efficient intelligent and green modern factory Integrating Ecological Footprint and MIPS into the LCA Framework
system driving improvements in green production efficiency and operational management effectiveness thereby laying a solid
foundation for its smart manufacturing ecosystem.A s complementary metrics to LCA Hengtong Optic-Electric has integrated the ecological footprint and resource consumption
rate (MIPS) into its comprehensive LCA assessment framework. This approach enhances resource utilization efficiency reduces
resource consumption in products and production processes and advances the circular economy.Digital Factory Construction Industrial Internet Applications Artificial Intelligence Applications
S mart Manufacturing: The Industrial Internet Platform: The Intelligent Decision-Making: Impact Risk and Opportunity Management
Company actively advances Company leverages an industrial Hengtong Optic-Electric leverages
the construction of smart internet platform to achieve artificial intelligence technology To address the long-term impacts of climate change on its business operations Hengtong Optic-Electric has integrated climate
manufacturing production lines. equipment networking data to conduct in-depth analysis change response into its overall risk management system. We have established a robust three-tier risk prevention and control
By introducing automation collection and data analysis of production data providing mechanism for climate change implementing systematic identification assessment and response to climate-related risks and
equipment robotics and providing robust support for intelligent decision support opportunities. This ensures the Company can maintain long-term stable operations while confronting the challenges posed by
other technologies it achieves production management for production management climate change.automated and intelligent equipment maintenance and equipment maintenance and
production processes enhancing energy management. energy management.production efficiency and product
Board of Directors Audit Committee Risk Management Committeequality. Remote Equipment Monitoring: Intelligent Inspection: The
The Company utilizes the Company has introduced AI-
Production Management industrial internet platform to powered inspection technology to The Board of Directors regularly T he Internal Audit Department P hysical Risks: The Risk
Platform: Hengtong Optic-Electric remotely monitor equipment automate product quality checks evaluates the effectiveness of under the leadership of the Management Committee
has established a production enabling real-time tracking enhancing inspection efficiency risk management measures to Audit Committee conducts coordinates relevant functional
management platform to monitor of operational status prompt and accuracy. enhance climate change risk regular audits of climate departments to identify prevent
production processes in real time detection and resolution of management internal controls change risk management and respond to physical risks
optimize production schedules equipment failures and enhanced I ntelligent Logistics: Utilizing and governance processes controls across all company associated with climate change
and improve production equipment utilization rates. AI technology the Company departments and processes. such as extreme weather events
efficiency. optimizes logistics transportation It assists and oversees the
Energy Management Platform: routes to reduce costs and implementation of risk Transition Risks: The Risk
Data Analysis Platform: The The Company has established an improve operational efficiency. management systems by Management Committee
Company has built a data analysis energy management platform that each department promptly coordinates relevant functional
platform to conduct in-depth facilitates real-time monitoring identifies risk vulnerabilities departments to analyze
mining and analysis of production analysis and optimization of and reports findings to the and assess climate-related
data. This identifies bottlenecks energy consumption data Audit Committee regulations policies disclosure
and issues within production effectively reducing energy usage. guidelines and market trends to
processes enabling targeted proactively address associated
improvements and optimizations. risks
Climate Change Tiered Risk Prevention and Control Mechanism
64 65Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
Indicators and Targets
Case Jiangsu Hengtong Power Cable Co. Ltd. Carbon Targets Approved by the Science Based
Targets Initiative
Hengtong Optic-Electric comprehensively assesses its current carbon emissions status scientifically plans and systematically
advances the process of its subsidiaries joining the Science Based Targets initiative (SBTi). Based on reasonably set reduction Jiangsu Hengtong Power Cable Co. Ltd. a subsidiary Concurrently reduce Scope 3 GHG emissions (covering
targets the Company fully considers each subsidiary's business development emission trends and reduction pathways to of Hengtong Optic-Electric formally applied to join the purchased goods and services upstream/downstream
formulate and implement phased carbon reduction plans. Concurrently through regular tracking of key performance indicators Science Based Targets initiative (SBTi) in November 2023. transportation and distribution use of sold products
the Company dynamically evaluates the effectiveness of its green and low-carbon manufacturing system ensuring orderly progress In July 2024 the Company successfully passed the SBTi and end-of-life disposal of sold products) by 61.1% per
and continuous improvement in carbon reduction efforts. verification for its net-zero targets. million RMB of added value.Relevant Management Index SBTi ID: 40006437 Long-Term Emissions Reduction Targets (by 2045):Temperature alignment
(based on scope 1 and 2 targets): 1.5° C R educe absolute Scope 1 and Scope 2 greenhouse gas
Energy Comprehensive energy consumption energy consumption per 10000 yuan of output value and total emissions by 90% compared to 2022 levels;
Consumption electricity consumption are used to assess energy consumption levels and drive improvements in energy Overall Net-Zero Target:
efficiency Achieve a 90% absolute reduction in Scope 3
Jiangsu Hengtong Power Cable Co. Ltd. solemnly greenhouse gas emissions (covering purchased goods
commits to achieving net-zero greenhouse gas emissions and services upstream and downstream transportation
Carbon Carbon emissions carbon emissions per 10000 yuan of output value and other indicators are used to across its entire value chain by 2045 actively fulfilling and distribution use of sold products and end-of-life
Emission assess carbon emission levels and drive emission reduction efforts corporate responsibility in addressing climate change. disposal of sold products) over the same period.Near-Term Emissions Reduction Targets (by 2033): The Company will advance green manufacturing
Indicators such as green electricity consumption green electricity usage share and total self-built supply chain decarbonization and product lifecycle
Green Energy photovoltaic capacity are used to evaluate green energy utilization and promote the substitution of traditional Reduce absolute Scope 1 and Scope 2 greenhouse gas management through clear phased objectives and
energy sources with green energy emissions by 54.6% compared to the 2022 baseline long-term commitments and establish a systematic
year; decarbonization pathway to achieve carbon neutrality
and sustainable development.Efficiency Indicators such as the reduction rate of energy consumption per unit of output and the reduction rate of
Enhancement carbon emissions per unit of output are used to evaluate the effectiveness of energy conservation and
emission reduction efforts and drive continuous improvement
Green Promote the research development and application of green and low-carbon technologies such as high-
Technology efficiency energy-saving technologies clean energy technologies and recycling technologies to enhance
green manufacturing standards
Green Supply Establish a green supply chain management system to encourage suppliers to adopt green and low-
Chain carbon production methods thereby achieving a greener supply chain
Green Develop green and low-carbon products to meet market demand and lead the trend toward green
Products consumption
Hengtong Optic-Electric's subsidiaries have developed and submitted carbon reduction and net-zero targets in batches
referencing the Science Based Targets initiative (SBTi) framework while aligning with their operational realities and strategicdevelopment. The first batch of subsidiaries to pass the review process fully met SBTi's stringent requirements accumulating 2022（Base 2024Change vs. Annualvaluable implementation experience that provides replicable pathways and practical references for subsequent subsidiaries. Project Scope and Unit Year) 2023 2024 Base Year (%) Achievement
By the end of the reporting period two subsidiaries had received formal SBTi recognition for their carbon reduction and net-zero
targets. This significant improvement in overall implementation efficiency demonstrates the effectiveness of the ESG Committee Scope1+Scope 2 26765.01 3267.54 3535.47 -86.79% Finishedand its working mechanisms in coordinating planning and driving systematic progress. （tCO2e)Greenhouse
Gas
Emissions Scope 3 Intensity
Target (tCO2e/
million RMB 2371.49 2210.90 1739.46 -26.65% Finished
Profit)
Achievement Status of SBTi Science-Based Target
66 67Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
Case Hengtong Submarine Power Cable Co. Ltd. Carbon Targets Approved by the Science
Greenhouse Gas
3 Unit 2022 2023 2024
Based Targets Initiative Emissions
Hengtong Submarine Power Cable Co. Ltd. a subsidiary SBTi ID: 40000900 Total greenhouse gas
of Hengtong Optic-Electric formally applied to join the Temperature alignment emissions (Scope 1 + tons CO2 equivalent(tCO2e) 339189.14 385822.96 460343.01
Science Based Targets initiative (SBTi) in June 2023. On (based on scope 1 and 2 targets): 1.5° C Scope 2)
September 26 2024 the Company successfully passed
the SBTi verification for its net-zero targets. Scope 1 greenhouse gas
emissions tons CO2 equivalent(tCO2e) 80297.40 78606.87 92377.46
Overall Net-Zero Target: Long-Term Emissions Reduction Targets (by 2045):
Scope 2 greenhouse gas Hengtong Submarine Power Cable Co. Ltd. solemnly Reduce absolute Scope 1 and Scope 2 GHG emissions emissions4 tons CO2 equivalent(tCO2e) 258891.74 307216.08 367965.55
pledges to achieve net-zero greenhouse gas emissions by 90% compared to 2022 levels;
across its entire value chain by 2045 fully fulfilling its tons CO equivalent
corporate responsibility in global climate governance. Reduce absolute Scope 3 GHG emissions by 90% over
2
Greenhouse gas
the same period. emissions intensity (tCO2e)/RMB 100 million in 730.00 810.18 767.44
Near-term Emissions Reduction Targets (by 2033): revenue
By establishing clear near-term and long-term targets
R educe absolute Scope 1 and Scope 2 greenhouse gas the Company will continue to drive energy transition and
emissions by 54.6% compared to 2022 levels; green low-carbon innovation progressively achieving 3 T he Company's primary greenhouse gas emissions originate from direct sources (Scope 1) and indirect energy sources (Scope 2).emissions reductions across the entire value chain T he Company conducts carbon inventories based on ISO 14064-1:2018 the Specification with Guidance at the Organization Level for Quantification
C oncurrently reduce Scope 3 greenhouse gas emissions and advancing toward net-zero pathways thereby and Reporting of Greenhouse Gas Emissions and Removals. The greenhouse gas categories primarily include carbon dioxide methane and nitrous
per million RMB of added value by 61.1%. contributing to global sustainable development. oxide. Calculations utilize the 2022 national average power sector carbon dioxide emission factor (excluding non-fossil energy electricity traded
in the market) from the Ministry of Ecology and Environment and National Bureau of Statistics' the Announcement on Issuing the 2022 Carbon
Dioxide Emission Factors for Electricity alongside emission factors from the IPCC Sixth Assessment Report published by the United Nations
Intergovernmental Panel on Climate Change.
4 The electricity emission factor for 2024 is 0.5856 tCO2/MWh for 2023 it is 0.5942 tCO2/MWh and for 2022 it is 0.5703 tCO2/MWh.
2024 ChangeProject Scope and Unit 2022（Base Year) 2023 2024 vs. Base YearAnnual
(%) Achievement
Scope1+Scope 2
（tCO e) 24991.07 23664.87 21858.28 -12.39% Finished2Greenhouse
Gas
Emissions Scope 3 Intensity
Target (tCO2e/
million RMB 775.81 1237.56 599.83 -22.68% Finished
Profit)
Achievement Status of SBTi Science-Based Target
68 69Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
3.3
Energy Efficiency and In our production and operational processes we actively implement multiple measures to enhance energy efficiency and reduce energy consumption per unit while vigorously promoting the use of clean energy.Transformation Case Hengtong Submarine Power Cable Co. Ltd. Annual Energy Saving and Emission Reduction
Hengtong Optic-Electric actively fulfills its corporate social responsibilities striving to Case Study
establish a green and low-carbon production and operation model. We recognize the critical In 2024 the Company continued advancing its green and low-carbon
importance of energy management for achieving sustainable development and continuously transformation deepening energy management to unlock factory energy-saving
enhance our company's energy management capabilities. potential through multiple retrofit projects:
W orkshop Corridor Lighting Upgrade: Replaced with low-power energy-
Energy Management System saving lamps achieving annual electricity savings of 57816 kWh and reducing CO2 emissions by 33.9 tons;
Visitor Corridor Lighting Upgrade: Annual electricity savings of 30660 kWh
Hengtong Optic-Electric strictly complies with laws and reducing CO2 emissions by 18.0 tons;
regulations such as the Energy Conservation Law of the Tower Chiller Energy Efficiency Improvement: Newly purchased variable-
People's Republic of China continuously strengthening energy Energy Saving Targets frequency screw chillers and supporting equipment achieved annual
management while driving technological innovation equipment electricity savings of 62928 kWh reducing CO emissions by 36.9 tons;
upgrades and digital management practices. We proactively 2Reduce energy consumption
conduct internal and external audits throughout production intensity by annually Annealing Process Upgrades for Extruding Machines: Implementation of
operations linking energy management performance to DC power cabinets increased production rates while achieving approximately
responsible personnel evaluations to drive improvements 5 15% energy savings.in energy utilization efficiency. During the reporting period 10 subsidiaries under Hengtong Optic-Electric obtained ISO % Through these measures the Company significantly enhanced energy utilization
50001 Energy Management System certification covering the efficiency and carbon reduction performance accumulating over 150000 kWh
Company's product lines including optical cables optical fibers in annual electricity savings and reducing CO2 emissions by nearly 90 tons. ISO 50001 Certificate for Hengtong
medium- and low-voltage cables high-voltage cables high- Submarine Power Cable Co. Ltd.voltage submarine cables conductors railway signaling cables
flexible cables and industrial cables.Case Jiangsu Hengtong Electric Power Special Wire Co. Ltd. Annual Energy Saving and Emission
Reduction Case Study
In 2024 the Company actively advanced energy conservation consumption reduction and intelligent upgrades. By
implementing multiple energy-saving initiatives focused on workshop lighting fan control equipment management and
process optimization we significantly enhanced energy utilization efficiency:
Smart Lighting: The conductor workshop introduced an intelligent lighting control system. Through regionalized and
automated time-based controls annual electricity savings reached 96352 kWh;
Intelligent Fan Control: Connecting aluminum workshop fans to the Company's main network enabled equipment
interconnection and smart control saving 922642 kWh annually;
P roduction Management Optimization: Enhanced stranded wire production continuity through power management
and optimized production scheduling projected to save 621610 kWh annually;
Wire Drawing Energy Efficiency Improvements: Optimized production scheduling enhanced skill coordination and
equipment maintenance are projected to save 1174810 kWh annually;
Laser Equipment Retrofit: Replacing gas lasers in tube production lines with solid lasers reducing power consumption
from 37.5 kW to 12.5 kW yielding annual savings of 125670 kWh;
Cooling System Optimization: Integrating cooling pump stations into water supply pipelines eliminating circulation
pumps and utilizing direct return water connections to cooling towers achieving annual savings of 216379 kWh;
Wire Drawing Equipment Upgrade: Replacing outdated single-head machines with dual-head wire drawing machines
equipped with fully automatic take-up systems (servo motors) achieving annual electricity savings of 768000 kWh.Through these measures the Company achieved cumulative annual electricity savings exceeding 4.2 million kWh
effectively reducing production energy consumption and carbon emissions while providing robust support for green
manufacturing and low-carbon transformation.Hengtong Optic-Electric Smart Industrial Park Energy Management System
70 71Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
Jiangsu Nanfang Optic-Electric Technology Co. Ltd. Annual Energy Saving and Emission Clean Technology and Energy TransitionCase Reduction Case Study
Hengtong Optic-Electric regards clean technology and energy transition as core corporate strategies setting greenhouse gas
With the rapid advancement of fiber optic communication technology demand for optical fibers continues to grow. Fiber emission intensity reduction as a management objective. We continuously advance carbon reduction across the entire production
drawing is a critical manufacturing process and induction furnaces represent one of the primary energy consumption process focusing on increasing clean energy usage to achieve an optimized energy structure transformation. Our clean energy
points. To reduce energy consumption enhance production efficiency and strengthen competitiveness the Company utilization encompasses multiple types primarily including renewable sources such as solar and wind power. In recent years we
initiated a specialized energy-saving retrofit project based on the working principles and actual operating conditions of have continuously advanced the construction of photovoltaic power stations and green cables deeply implemented energy-saving
the induction furnaces. upgrades and promoted the development of green energy sources such as marine energy and offshore wind power equipment. By
establishing a clean energy operation and service system covering the entire industrial chain Hengtong Optic-Electric continuously
Before Improvement After Improvement enhances its overall energy management capabilities achieving the optimization and upgrading of its energy structure.Issue: The total power M easures: Implemented an energy-saving optimization plan
consumption across all through in-depth analysis of furnace operating principles Case Green Design and Low-Carbon Product Innovation: Recycled and Pure Green Cable Case
drawing lines reached combined with production applications; Studies
51.76 kW resulting in high
energy costs and significant Results: Total power consumption was reduced to 44.8 kW In 2024 Jiangsu Hengtong Power Cable Co. Ltd. actively responded to the "Carbon Peak by 2030 and Carbon Neutrality
electricity expenses. yielding substantial economic benefits. by 2060 " goals advancing green low-carbon and sustainable development strategies. Through technological innovation
the Company launched two categories of green low-carbon products: Recycled cables and Pure Green cables.R ecycled cables: Both conductor and sheath materials utilize recyclable renewable raw materials. The conductor
contains over 10% recycled content with performance meeting HD and IEC standard requirements. This product
Meanwhile Hengtong Optic-Electric has established and continuously refined its digital energy management platform. By reduces the carbon footprint through raw material recycling and reuse promoting sustainable economic development;
integrating IoT big data and artificial intelligence technologies it enables real-time monitoring data collection and dynamic
analysis of energy-consuming equipment processes and scenarios. This not only enhances energy consumption visualization Pure Green Cable: The sheath material utilizes plastics derived from biomass extracts (such as sugarcane and corn)
but also provides data support for energy efficiency diagnostics and carbon emissions accounting. The platform also features offering durability mechanical properties and UV resistance comparable to traditional petroleum-based materials.predictive analytics and optimized scheduling capabilities propelling the Company's energy management toward intelligent and It complies with HD 605 and IEC 60502 standards. The product employs aluminum-plastic composite tape shielding
low-carbon practices. This provides robust technical support for achieving carbon peak and carbon neutrality goals. technology to optimize electric field distribution offering short-circuit carrying capacity and excellent longitudinal
water-blocking performance. It delivers corrosion resistance up to 3000 hours while combining high reliability with
environmental attributes.Case Practices for Digital Verification of Product Carbon Footprint Certificates Through these innovative designs Jiangsu Hengtong Power Cable Co. Ltd. has not only achieved greener and lower-
carbon cable products but also enhanced material utilization efficiency and environmental performance making positive
contributions to corporate sustainability and global environmental protection.Hengtong has successfully established a digital carbon footprint verification model and collaborated with the China
Quality Certification Center market regulatory authorities and major testing institutions to jointly build a factor database
achieving mutual data trust and unified certification standards. Leveraging its carbon footprint management platform the
Company has enabled automated data collection from information systems to edge devices. Combining the platform's
modeling and analytical capabilities with blockchain technology for secure data storage Hengtong collaborates with
the China Quality Certification Center to conduct online calculations and reviews significantly streamlining the carbon
footprint certification process. Based on this innovative practice CQC awarded Jiangsu Hengtong Power Cable Co. Ltd.the first product carbon footprint certificate verified through digital means in the wire and cable industry establishing a
key demonstration case for the Company's ESG data management.First Digital Verification of Product Carbon Footprint Certificates in the Wire and Cable Industry with CQC Test Report for Biomass Extracts Usage in Product
72 73Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
Case Green Design and Low-Carbon Product Innovation: Case Studies of Floating Offshore Wind Case Hengtong Submarine Power Cable Co. Ltd. Scope 1 + Scope 2 Carbon Neutrality Farms and Eco-Friendly Submarine Cables Achievement
In 2024 Hengtong Submarine Power Cable Co. Ltd. achieved significant milestones in clean technology driving During the reporting period Hengtong Submarine
continuous innovation in dynamic cables for floating offshore wind turbines eco-friendly cables and aluminum-core Power Cable Co. Ltd. a subsidiary of Hengtong
submarine cables. This solidified clean technology as the Company's core strategic focus. Optic-Electric purchased 37078 China Green
Certificates (equivalent to 37.078 million kWh) Floating Offshore Wind Dynamic Cable Technology: Developed a leading 66kV floating offshore wind dynamic cable and 655.26 metric tons of international carbon
system addressing critical issues such as low fatigue resistance in marine environments and providing reliable technical credits (VCUs) achieving carbon neutrality (Scope
support for dynamic cable applications in large offshore wind farms; 1 + Scope 2). This signifies zero carbon emissions
Recyclable Polypropylene Submarine Cable Technology: In the eco-friendly cable sector developed copper-core at the energy level. All transactions have been
polypropylene-insulated welded aluminum-sheathed and polyethylene-sheathed cables achieving full lifecycle verified by third-party inspection agencies
recyclability for submarine cable products and providing an effective technical solution for circular economic which issued organizational carbon neutrality
development; verification statements.Aluminum-Core Submarine Power Cable Technology: Launched 66kV aluminum-core submarine cable products
optimizing resource utilization structures. This initiative promotes reduced copper usage within the cable industry and
elevates green manufacturing standards.Through these technological innovations Hengtong Optic-Electric has not only enhanced the reliability and durability of
offshore wind power and submarine cable products but also provided strong support for marine energy development and Hengtong Submarine Power Cable Co. Ltd. Obtains Carbon
circular economy construction demonstrating the Company's leading advantages in the fields of clean energy and green Neutrality Verification Statement Certificate
technology.Case Jiangsu Hengtong Electric Power Special Wire Co. Ltd. Scope 1 + Scope 2 Carbon Neutrality Achievement
Case Continuous Development of Indurstrial Park Photovoltaics and Advancement of the Low-Carbon Energy Strategy Jiangsu Hengtong Electric Power Special Wire Co. Ltd. conducted a greenhouse
gas verification in 2024 which was certified by a third-party testing agency and
The Company's three major industrial parks and nine domestic and international industrial subsidiaries are actively resulted in the issuance of a verification statement certificate. Concurrently
advancing distributed photovoltaic projects with a cumulative planned installed capacity of 53.7 MW. Currently 11.3 MW Hengtong Electric Power Special Wire purchased 11680 green certificates and 6568
has been put into operation. The operational projects generate approximately 5.0674 million kWh of electricity annually tons of carbon credits (VCU) in 2024 achieving carbon neutrality for Scope 1 and
reducing carbon dioxide emissions by about 2846.4 tons per year. Through self-built photovoltaic projects the Company Scope 2 emissions. The Company also obtained a carbon neutrality verification
has effectively increased its renewable energy usage ratio lowered carbon emission intensity and promoted the green statement certificate from TüV SüD.and low-carbon transformation of industrial parks and supply chains achieving sustainable development in energy
utilization.Jiangsu Hengtong Electric Power Special Wire Co. Ltd. Obtains Carbon Purchase of Green Electricity and
Neutrality Verification Declaration (ISO 14068) Certificate
Jiangsu Hengtong Huahai Technology Co. Ltd. Self-Built Photovoltaic Project Carbon Credits
74 75Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
Jiangsu Hengtong Huahai Technology Jiangsu Hengtong Power Cable Co. In 2024 subsidiaries under Hengtong Optic-Electric actively promoted the use of clean energy in their products and operations
Case Co. Ltd. Conducts Scope 1 + Scope 2 Case Ltd. has been Honored as a "Suzhou actively adopted low-carbon technologies and energy-saving measures and achieved significant carbon reduction benefits.Carbon Inventory (Near) Zero-Carbon Factory"
In 2024 Jiangsu Hengtong Huahai Technology Co. The Company has established a greenhouse gas Green Factories and Photovoltaic Applications
Ltd. conducted a greenhouse gas inventory covering management system and a near-zero carbon factory
Scope 1 and Scope 2 emissions and obtained third- initiative actively promoting green design and energy Factory PV generation: The system has a design lifespan of 25 years with an average annual effective generation of
party verification certification. efficiency improvements. The Company continuously about 1480 hours and an average annual power generation of about 137MWh
implemented green production line upgrades
achieving a 7.4% increase in production efficiency
a 23% reduction in energy consumption per unit
annual electricity savings of 4.533 million kWh and CO2
emissions reductions of 2692 tons. Through systematic Energy Saving and Consumption Reduction in Highlighted Products
carbon reduction initiatives the Company significantly
enhanced its green manufacturing capabilities and was By optimizing factory logistics routes and expanding the logistics system the Company can reduce the need for three
recognized as a "Suzhou (Near) Zero-Carbon Factory" forklifts annually thereby decreasing fossil fuel consumption and lower carbon emissions
in 2024.Aberdare's Highlighted Initiatives in Clean Technology and Energy Transition in South Africa
The following table presents the energy consumption metrics for Hengtong Optic-Electric over the past three years:
Energy Consumption5 Unit 2022 2023 2024
Direct Energy
Gasoline liter 157017.59 321840.10 308707.00
Disel liter 5742733.62 6067596.95 4233370.00
Natural Gas ten thousand cubic meters 2667.76 2624. 67 3783.17
Jiangsu Hengtong Huahai Technology Co. Ltd.Greenhouse Gas Verification Statement Certificate Announcement of Suzhou (Near) Zero-Carbon Factory Hydrogen ten thousand cubic meters 29.46 27.35 268.05
Propane ton 75.19 15.3 13.89
Biomass Pellets ton 2367.00 3070.00 3667.06
Indirect Energy
Purchased Electricity kWh 701999126.00 727744962.00 848855089.00
Purchased Green
Electricity kWh 250435000.00 227142770.00 220579100.00
Purchased Steam ton 15358.55 8883.66 20088.70
Total Energy Consumption
Total Energy ton of standard coal
Consumption equivalent 130269.75 133396.91 161443.43
Energy Consumption ton of standard coal
Intensity equivalent /100 million RMB 280.37 280.12 269.14
5 T he comprehensive energy consumption is calculated based on the consumption volumes of gasoline diesel natural gas hydrogen electricity
and steam as well as the conversion coefficients specified in China's national standard General Principles for Calculating Comprehensive Energy
Consumption (GB/T 2589-2020).
76 77Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
3.4
Water-Saving Transformation
and Optimization
Water resource management is not only an indispensable part of daily operations but also a
cornerstone for achieving sustainable development and fulfilling environmental responsibilities.Hengtong Optic-Electric strictly adheres to relevant laws and regulations such as the Water Law
of the People's Republic of China and the Measures for the Administration of Water Withdrawal
Permits. We have established and follow internal water management systems including the
Regulations on Water Conservation and Recycling Management. Our goal is to efficiently operate
and maintain water-saving facilities while exploring further water-saving potential thereby
promoting the sustainable use of water resources in our operations and enhancing water
efficiency. During production and operations we regularly conduct water risk assessments and
scenario analyses for our direct operations and other value chain segments alongside water
balance testing and water price monitoring. Concurrently we allocate financial expenditures to
address water-related risks invest in R&D to upgrade facilities and equipment strive to reduce
water consumption in our own production and operations and protect water resources in the
regions where we operate.We place high importance on water recycling establishing centralized water recycling systems for workshops and rainwater
harvesting systems. These measures effectively enhance water recycling rates and reduce the withdrawal of fresh water.Case Jiangsu Hengtong Huahai Technology Co. Ltd. Upgrades Water-Using Equipment
Recycled Water Use in 2024 Water Conservation in 2024 In 2024 Jiangsu Hengtong Huahai Technology Co. Ltd. comprehensively upgraded its water-using equipment uniformly
adopting water-saving fixtures such as instant-on/off faucets and smart-controlled toilets. Concurrently the Company
Water use intensity decreased by strictly required suppliers to provide water-saving product inspection reports during procurement to ensure product
performance met water-saving standards. Through these measures the Company achieved a 20% to 30% improvement
77.6064 10.31 in water efficiency compared to traditional fixtures.million tons %
Meanwhile Hengtong Optic-Electric places high importance on cultivating and enhancing employees' water conservation
awareness. Through multi-tiered various training programs and promotion activities on water-saving knowledge the Company
strengthens the sense of responsibility and environmental awareness among all staff members.Case Jiangsu Hengtong Electric Power Special Wire Co. Ltd. Water Conservation and Water
Resource Utilization Efficiency Enhancement
Use of Water Unit 2022 2023 2024
In 2024 Jiangsu Hengtong Electric Power Special Wire Co. Ltd. completed the optimization and renovation of its
workshop cooling pump station system aligning with resource conservation and green production objectives. The Total Water
project centralized water supply by integrating inlet pipelines eliminated cooling tower circulation pumps and Consumption ten thousand tons 285.18 250.80 290.58
established a pressure return water circulation system by directly connecting equipment return pipes to cooling towers.This initiative not only streamlined the cooling water system workflow and reduced pump energy consumption but also
enhanced water resource recycling efficiency effectively minimizing losses during cooling water transportation. Water Use Intensity ton/100 million RMB 6137.61 5401.10 4844.28
78 79Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
3.5
Emissions Management and Case Case Study on Atmospheric Waste Gas Emission Management and System Implementation at Hengtong Submarine Power Cable Co. Ltd.Recycling Hengtong Submarine Power Cable Co. Ltd. strictly implements its atmospheric pollutant management system to ensure
factory emission concentrations and rates comply with national local and industry standards. Through comprehensive
The Company strictly adheres to the Environmental Protection Law of the People's Republic of institutional management and operational protocols the Company ensures the operation and daily management of waste gas treatment facilities achieving full control over the entire waste gas emission process.China and relevant laws and regulations in its operational regions. It has established an internal
Comprehensive Management System for Hazardous Waste based on the principles of reduction According to the Environmental Impact Report Form (Chang Huan [2009] No. 144) approved by the Changshu
harmless treatment and resource utilization to comprehensively control the discharge and Environmental Protection Bureau in 2009 the factory's lead-containing exhaust gases are treated through baghouse dust removal and water curtain dust removal systems before discharge. The treated exhaust gas meets the following
treatment of pollutants and waste. Under the unified system and management framework of the standards: - Lead dust concentration complies with Level 2 standards of Table 2 in the "Emission Standard for Air
Group environmental management requirements and assessment standards for subsidiaries Pollutants from Industrial Furnaces" (GB9078-1996) - Asphalt fume concentration meets Level 2 standards of Table 2 in
have been formulated to ensure strict implementation of source reduction and discharge control the "Integrated Emission Standard for Air Pollutants" (GB16297-1996).for "three wastes" (wastewater waste gas and solid waste) in their production operations. The Company regularly commissions third-party testing agencies for monitoring. The latest test results from October
Through measures such as policy guidance technical support supervision and inspection and 2024 show that emission indicators remain compliant demonstrating the effective implementation of management
performance evaluation the Group drives subsidiaries to establish standardized traceable systems and operational requirements at the subsidiary. Through the integration of institutionalized management technical measures and monitoring verification the Company has established a standardized traceable air pollutant
pollutant management systems minimizing the potential environmental impact of production emission management system providing a practical model for green production and environmental compliance.activities.During the reporting period Hengtong Optic-Electric and its subsidiaries achieved a 100%
compliance rate for both exhaust gas and noise emissions along with a 100% qualified disposal
rate for waste. This demonstrates the Company's overall effectiveness in implementing
environmental management systems process control and green operations providing a Wastewater Management
foundational framework of both policy and practice for subsequent case studies showcasing Hengtong Optic-Electric's wastewater discharge primarily consists of domestic sewage and industrial wastewater containing
specific management practices at subsidiaries. pollutants such as COD SS total phosphorus and ammonia nitrogen. We strictly adhere to the Water Pollution Prevention
and Control Law of the People's Republic of China international wastewater discharge standards and other relevant domestic
Exhaust Gas Management and international laws and regulations. We continuously optimize wastewater discharge management practices and upgrade wastewater treatment facilities.Hengtong Optic-Electric's exhaust emissions primarily consist of sulfur oxides generated during production processes such as
extrusion lead extrusion and asphalt coating as well as from administrative office areas during operational hours. The Company
strictly adheres to relevant domestic and international laws regulations and exhaust gas disposal ordinances including the Air Wastewater Treatment System Wastewater Treatment Facility Industrial Wastewater Treatment
Pollution Prevention and Control Law of the People's Republic of China. It has established the Exhaust Gas Emission Control
Procedure which sets forth stricter standardized requirements and treatment measures for exhaust emissions continuously
strengthening exhaust gas control processes. Additionally we regularly engage professional third-party testing agencies to monitor Configure a wastewater Install treatment facilities such All discharged into the municipal
pollutants ensuring our operations and production meet stringent environmental standards. treatment system for centralized as collection pits sedimentation sewer system for treatment
processing to meet standards tanks drainage ditches septic
before unified discharge. tanks and grease traps at
Conduct self-monitoring of water the production site. After
Waste gas treatment is conducted through methods such as activated carbon adsorption (extrusion and asphalt quality pollutants and third-party implementing sedimentation
processes) and water spray + baghouse dust collection (lead extrusion process) spot checks treatment and degradation
separation measures recycle the
treated wastewater
Real-time monitoring of waste gas emissions is implemented while qualified third-party testing agencies are
commissioned for periodic indicator monitoring
Hengtong Optic-Electric Wastewater Management Initiatives
In accordance with relevant requirements high-efficiency waste gas collection and treatment equipment has been
installed to enhance management of volatile organic compounds generated during production
During the reporting period our wastewater testing averages complied with GB8978-1996 and were incorporated into pipeline
network requirements. In 2024 the Company experienced no non-compliance incidents exceeding discharge limits.Strict control is exercised over the waste gas facility treatment process
Hengtong Optic-Electric Exhaust Gas Emission Treatment Measures
80 81Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
Case Case Study on Water Pollutant Management and System Implementation at Hengtong
Hazardous Waste
Submarine Power Cable Co. Ltd.The primary sources of hazardous waste at Hengtong Optic-Electric are waste emulsions activated carbon and other toxic and
Hengtong Submarine Power Cable Co. Ltd. strictly enforces its water pollutant management system to ensure factory hazardous substances generated in factory and administrative office areas. We strictly adhere to the Pollution Control Standard
discharge concentrations comply with national local and industry standards. Currently the facility has no total discharge for Storage of Hazardous Waste (GB18597-2001) and other regulatory requirements including the Hazardous Waste Management
quota indicators. Through institutionalized management and standardized operations the Company implements domestic Plan. Hazardous waste generated during operations is collected and stored in a temporary hazardous waste storage area. It is then
sewage discharge and wastewater treatment measures achieving full-process control over water pollutant emissions. transferred and disposed of through the "Jiangsu Province Hazardous Waste Full Life Cycle System" and regularly entrusted to qualified third-party waste disposal agencies for unified treatment.According to the Environmental Impact Report Form (Chang Huan [2009] No. 144) approved by the Changshu Environmental
Protection Bureau in 2009 the factory's production processes must not generate wastewater discharge. Domestic sewage
is connected to the development zone's sewage pipeline network and centrally treated by Changshu Binjiang New District
Sewage Treatment Co. Ltd. Domestic sewage discharge points strictly comply with the "Quality Standards for Sewage Case Case Study on Solid Waste Classification Management and Resource Utilization at
Discharged into Urban Sewers" (GB/T 31962-2015) ensuring discharge water quality meets regulatory requirements. Hengtong Submarine Power Cable Co. Ltd.The Company regularly commissions third-party agencies for monitoring. The latest test results from October 2024 indicate Hengtong Submarine Cable Co. Ltd. generates solid waste primarily consisting of industrial waste general industrial waste
that water pollutant discharge indicators consistently meet standards validating the effective implementation of management and hazardous waste. By establishing a comprehensive solid waste classification management system and implementing
systems and operational requirements at the subsidiary. Through the integration of system implementation technical differentiated disposal methods for each category the Company has achieved institutionalized streamlined and
measures and monitoring verification the Company has established a standardized traceable water pollutant management transparent solid waste management. This approach not only effectively reduces environmental risks but also enhances
system providing a practical model for green production and environmental compliance. waste resource utilization rates creating an exemplary annual management case. Specific measures include:
I ndustrial waste: It is uniformly recycled and disposed of by qualified professional recycling agencies with whom the
Company signs a commissioned disposal agreement to ensure the disposal process is legal and compliant;
Waste Management General industrial waste: It shall be handed over to qualified renewable resource utilization units for recycling and disposal and the resource utilization shall be promoted through the signing of contracts;
Hengtong Optic-Electric strictly adheres to relevant domestic and international laws and regulations including the Law of the H azardous waste: For hazardous waste such as waste activated carbon and waste emulsion we strictly adhere to
People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste and the Law of the People's national regulations and entrust it to environmental protection enterprises with hazardous waste disposal qualifications
Republic of China on the Prevention and Control of Soil Pollution . The Company has established a Waste Control Procedure to for harmless disposal. Meanwhile we keep full records and tracking on the hazardous waste management platform of
comprehensively manage non-hazardous and hazardous waste standardize the collection storage transportation and disposal of the government authorities to ensure compliant safe and controllable transfer.waste and advance full-process compliance management of waste throughout production and operations.Non-Hazardous Waste
Hengtong Optic-Electric's non-hazardous waste primarily includes packaging materials (fiber optic shells cardboard boxes etc.)
raw and auxiliary materials (steel and aluminum strips steel wires etc.) generated during factory production as well as office
waste and employee household waste. The Company actively optimizes management across product manufacturing testing
transportation and delivery phases. It focuses on reducing consumption of raw materials auxiliary materials and packaging
materials to minimize waste generation while promoting material recycling. This approach enables a gradual annual reduction in
total non-hazardous waste volume. Concurrently the Company actively practices circular economy principles by implementing
comprehensive recycling and reuse programs for certain non-hazardous wastes continuously enhancing the resource utilization
rate of waste materials.Employee household waste
Packaging material waste is Raw and auxiliary material is bagged and stored in
recycled directly waste is reused after secondary designated areas for regular
processing removal and disposal by
local sanitation authorities
Hengtong Optic-Electric's Non-Hazardous Waste Disposal Measures
82 83Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
Circular Economy
Hengtong Optic-Electric adheres to green development principles positioning circular economy as a key driver in production
operations to comprehensively advance resource conservation and material recycling. Under Hengtong Optic-Electric's unified
system and management framework circular economy management requirements and assessment standards for subsidiaries Case Hengtong Optic-Electric Case Study on the Management of Raw Material and Solid
have been established and implemented. This ensures strict adherence to policies on recycling raw materials auxiliary materials Waste Recycling
and waste throughout production processes at all subsidiaries. Through measures including system guidance technical support
supervision and inspection and performance evaluation subsidiaries are driven to establish standardized traceable resource The recyclable raw materials (such as copper aluminum steel etc.) and solid waste generated in the production and
management systems. This achieves reduction reuse and resource recovery of raw materials and waste. operation of subsidiaries under Hengtong Optic-Electric are recycled through both internal and external channels of
the parent company. Jiangsu Hengtong Precision Engineering Metal Materials Co. Ltd. serving as the primary internal
During the reporting period subsidiaries achieved significant results in helium recovery metal material recycling and solid waste recycling contractor centrally manages and processes recyclable materials from subsidiaries. Simultaneously certain
resource utilization: helium recycling efficiency notably improved while recovery rates for raw materials like copper aluminum waste materials are recycled through external suppliers establishing a closed-loop system integrating internal recycling
and steel along with solid waste resource utilization volumes reached industry-leading levels. These practices not only reduced with external recovery.production costs but also effectively minimized environmental impact. They demonstrate Hengtong Optic-Electric's overall
effectiveness in implementing circular economy management systems process control and green operations providing a model
and foundation for experience sharing among subsidiaries and future green management initiatives.Measures and Management Results
E stablish a recycling ledger for raw materials and S ubsidiaries achieve substantial recycling volumes
solid waste clearly defining classification standards of raw materials and solid waste with high circular
Case Jiangsu Hengtong Optical Material Co. Ltd. Circularity Efficiency Improvement Case Study responsible personnel and disposal procedures; utilization rates;
T hrough the parent company's (Hengtong Optic- E ffectively reduce production costs and environmental
The helium recovery efficiency in the front-end sintering process was low primarily due to reduced energy recovery Electric) institutional guidance and technical support impact delivering benefits of economic and
treatment efficiency butterfly valve blockages and insufficient exhaust hood pressure. This resulted in prolonged ensure all subsidiaries strictly implement recycling environmental gains;
processing times and resource wastage. To enhance process efficiency and reduce energy consumption the Company storage and disposal management to achieve a
initiated a dedicated improvement project. traceable and quantifiable circular utilization system; Establish a closed-loop resource recovery system
within the parent company driving comprehensive
C onduct regular tracking and evaluation of recycling implementation of circular economy management
Before Improvement After Improvement effectiveness to ensure the efficiency and safety of across subsidiaries and demonstrating the effectiveness
resource utilization. of integrated parent-subsidiary coordination.Issue: Low helium recovery M easures: Through process optimization equipment
efficiency extended troubleshooting and enhanced control procedures metrics
processing times and gradually recovered after a temporary decline.inadequate resource
utilization. Results: Helium recovery efficiency increased to 80.85%
achieving significant raw material savings and economic
benefits.Emissions Unit 2022 2023 2024
Exhaust Emissions
This project effectively boosted helium recycling efficiency delivering both economic and environmental benefits. It Sulfur Oxides ton 0.05303 0.048 1.97
provides replicable experience for circular economy management.Wastewater Discharge
Domestic Sewage Discharge Volume ton 36180.72 31099.93 178843.31
Hazardous Waste
Waste Emulsion ton 251.09 287.28 438.10
Activated Carbon ton 1.40 8.106 23.81
Total Generation of Hazardous Waste ton 586.60 322.98 832.99
Non-hazardous Waste
General Solid Waste Generation (Recyclable) ton 117586.80 115016.46 14845.82
Total Amount of Packaging Materials Recycled for Reuse ton 70894.86 77984.35 7934.60
Total Amount of Other Waste Materials Recycled for Reuse ton 46691.94 37032.11 6911.22
Total General Solid Waste (Non-Recyclable) ton 49939.22 43946.52 3073.34
Total Generation of General Solid Waste ton 167526.02 158962.98 17919.15
84 85Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
04
Caring for
Employees:
Promoting Inclusive
Development
Talent is the core driving force and competitive
edge for an enterprise's long-term development.Hengtong Optic-Electric upholds a people-ori-
ented philosophy places high value on employ-
ee worth and is committed to fostering a fair
equitable diverse equal healthy and safe work
environment. Through transparent hiring pro-
cesses comprehensive employee development
systems generous benefits packages open
communication channels and scientific safety
management practices the Company maximizes
the protection of employee rights and interests
enabling mutual growth between employees
and the enterprise.Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
4.1
Talent Attraction and Retention Trade Unions and Collective Agreements
Hengtong Optic-Electric consistently regards the protection of employee rights and the development of harmonious labor relations
as integral components of sustainable development. Referencing relevant laws regulations and International Labour Organization
Hengtong Optic-Electric strictly adheres to the requirements of national laws and (ILO) requirements we have established and implemented internal systems such as the Management Control Procedures for
regulations including the Labor Law of the People's Republic of China the Labor Freedom of Association and Collective Bargaining Rights . We actively support employees' freedom to form associations and
Contract Law of the People's Republic of China the Trade Union Law of the People's participate in collective bargaining safeguarding their rights to information participation and expression regarding working
Republic of China Law of the People's Republic of China on the Protection of Minors conditions compensation and benefits occupational health and safety. This ensures every employee enjoys the lawful rights to the freedom of association and participation in collective bargaining. During the reporting period the collective agreement signing
and the Provisions on the Prohibition of Using Child Labor. We have established internal rate reached 100% with 100% union coverage.rules and regulations such as the Hengtong Optic-Electric Recruitment Management
Measures to standardize the management of employee hiring compensation benefits
working hours and leave. This ensures fairness and impartiality in the recruitment
process and work environment safeguarding the rights and interests employees are Employee Compensation
entitled to. The Company is committed to attracting retaining and fostering the continuous growth of talent. We adhere to the
principle of "equal pay for equal work and distribution according to labor" building a fair just scientific and reasonable
compensation management mechanism while continuously improving a competitive compensation system. The Company
strictly complies with laws and regulations including the Company Law of the People's Republic of China the Labor Law
of the People's Republic of China the Social Insurance Law of the People's Republic of China the Provisions on Minimum
Prohibition of Child Labor and Forced Labor Wages the Paid Leave Regulations for Employees and the Medical Leave Regulations for Employees Suffering from Illness or Non-Work-Related Injuries . It references the statutory minimum wage and living wage6 standards in each operational location
to ensure all employees including part-time staff receive compensation that meets or exceeds the living wage standard.Hengtong Optic-Electric explicitly prohibits the employment of child labor and forced labor. We have
developed and implemented the Management and Control Procedures for Prohibiting Forced Labor
rigorously screening during the recruitment phase to prevent the hiring of minors. Should any violations of Management I mplement rank-based management where employee ranks are determined by
employment regulations be discovered we will conduct thorough investigations immediately and impose and Technical qualification assessments. Position coefficients are assigned according to rank
strict disciplinary measures on those responsible for non-compliant hiring practices. During the reporting Positions Compensation standards are set based on employee capability and performance
period Hengtong Optic-Electric did not experience any incidents involving child labor or forced labor.Diversity and Inclusion Monthly compensation is calculated using rank-based wages supplemented by business settlement pay enhancing compensation security
Marketing
Positions A nnual total income is determined by performance metrics such as sales volume and
We consistently uphold a workforce philosophy of diversity equality and inclusion. We actively implement market expansion. Key incentives are provided to sales personnel who significantly
diversity policies and oppose any form of harassment sexual harassment discrimination or differential exceed targets ensuring performance and income grow in tandem
treatment. This ensures employees of all genders ages regions ethnicities family statuses marital statuses
religions disabilities sexual orientations and social backgrounds enjoy equal development opportunities.For workplace discrimination and harassment incidents the Company has established comprehensive
reporting procedures. If an incident is verified and confirmed we will take appropriate actions against Determine employees' skill levels and job grades based on competency assessments
involved employees based on the nature of the incident including warnings disciplinary actions or Operational Implement piece-rate and hourly compensation models setting pay levels according to
termination. The Company regularly conducts diversity-themed training and awareness campaigns to Positions local market conditions
continuously enhance employees' understanding of diversity and inclusion promote mutual respect
and jointly foster an open inclusive harmonious and friendly workplace environment. Additionally we
consistently provide quality employment opportunities for disadvantaged groups including individuals with
disabilities and ensure equal treatment for all based on the principle of equal pay for equal work.Logistics Support
Aligned with our talent strategy and business needs we have established diverse global recruitment plans and Administrative Establish compensation standards at local market averages ensuring alignment with
and targets that define the direction scale and structure of talent development. These plans undergo Positions capability and performance through rank management and qualification evaluations
dynamic annual adjustments and updates. We continuously strengthen our employer brand optimize
recruitment processes enhance job-candidate matching rates and attract and retain top talent resources.Hengtong Optic-Electric Job Grade Compensation Model
6 Living wage: The minimum wage for basic working hours ensuring the basic needs of employees and their families are met; The living wage includes
basic wages but excludes bonuses and overtime pay.
88 89Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
The Company's compensation structure comprises fixed and variable components. Variable compensation includes bonuses
and performance-based incentives designed to motivate employees with portions directly tied to the Company's operational Goal Management Multi-dimensional
performance. We integrate environmental management performance health and safety metrics and other relevant indicators Performance Evaluation
into the compensation assessment system for management aligning the interests of executives with the Company's sustainable (360 Degree Feedback Method)
development to promote long-term growth. Concurrently we have established an employee compensation growth mechanism
that effectively links performance outcomes output value enhancement and compensation optimization. This approach lays a Develop an annual comprehensive employee
solid foundation for Hengtong Optic-Electric's compensation strategy talent development and retention efforts. evaluation plan specifying the scopr of assessment Employee performance levels are determined by evaluation methods metrics and content and comprehensively evaluating multiple dimensions
performance goals. Evaluate and incentivize employees including work performance contributions rewards
based on their achievement of these goals and penalties and other relevant factors
Compensation Strategy Growth Mechanism Incentive Orientation
Establish a high-quality Hengtong Optic- Focusing on work
compensation management Electric integrates performance (outcomes)
strategy featuring output value into its enhance the market Further increase the autonomy of departmental teams Build a leadership feedback and employee
"performance evaluation- compensation growth competitiveness of in performance allocation conduct comprehensive confirmation mechanism. Through regular reviews
driven adjustments mechanism to achieve compensation for high- evaluations by integrating team performance with of individual and team performance goals maintain
company-autonomous dual improvements performing employees to individual performance and provide preferential treatment communication and feedback between employees
distribution and group in efficiency and strengthen incentives. for outstanding talents with exceptional contribution and management
oversight and guidance". compensation levels.Team Performance
Evaluation Agile Conversation
Hengtong Optic-Electric Performance Evaluation Types
Hengtong Optic-Electric Employee Compensation Growth Mechanism
To ensure fairness throughout the performance evaluation process we provide employees with transparent channels to promptly
discuss assessment results with their supervisors or HR department. This facilitates reflection on past performance offers feedback
2024 and suggestions and allows ongoing communication regarding goal setting and evaluation issues. Should employees disagree with their assessment outcomes they may follow the appeal process to submit feedback and requests for reconsideration. During
the reporting period our regular performance and career development reviews covered all employees.Average Ratio of Male to Female Average Ratio of Male to Female Average Ratio of Male to
Compensation in Senior Compensation in Management Female Compensation Among
Management General Staff
Manager If employees have objections to performance evaluation results or other matters
1:1 1:1 1:1 communication they may talk directly with their supervisor to resolve the issue
Ratio of Female Employees' Ratio of Male Employees' Standard Appeal to indirect If the dispute remains unresolved after communicating with the supervisor the
Standard Starting Salary to Local Starting Salary to Local Minimum Wage supervisor/HR employee can appeal to the indirect supervisor or file a complaint with HR
Minimum Wage
1.61:1 1.61:1 Investigation According to the appeal HR is responsible for investigating and coordinating and
&coordination keep the employee known of the final result
Employee Motivation Hengtong Optic-Electric Employee Performance Appeal Process
Hengtong Optic-Electric steadfastly adheres to the principle of "evaluating based on work performance" ensuring fairness and Hengtong Optic-Electric has launched an employee stock their initiative and creativity align their interests more
transparency in our performance appraisal and promotion systems. We believe that a fair impartial and transparent performance ownership plan covering 246 individuals including certain closely with the Company's long-term development and
evaluation system demonstrates our appreciation and respect for employees' outstanding contributions effectively attracting and directors senior management core technical personnel achieve sustainable growth the Company formulated and
motivating them to drive company growth. and key technical and operational staff. This initiative aims implemented the 2024 Restricted Stock Incentive Plan
to stimulate the motivation and creativity of managers and marking Hengtong Optic-Electric's first equity incentive
We conduct regular multidimensional performance evaluations to comprehensively and objectively assess employee employees thereby promoting the Company's long-term program. The plan grants up to 21553532 restricted A-shares
contributions. As a key component of performance management we perform quarterly comprehensive reviews of employee sustainable and healthy development. to eligible participants. These shares originate from the
work and performance helping individuals clearly identify their strengths and areas for improvement across dimensions such as Company's repurchased shares on the secondary market.learning ability leadership execution knowledge and experience. Annual assessment results are issued at year-end to ensure the In 2024 to further implement long-term incentives and The recipients comprise 529 core personnel including key
fairness objectivity and reasonableness of the performance evaluation process. constraints for the Company's core personnel fully mobilize technical experts and core market specialists.
90 91Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
Talent Retention
Hengtong Optic-Electric consistently regards talent as the core scientific salary growth mechanisms. This fosters a stable and Number of employees by hierarchical level Number of employees by region
driving force behind the Company's sustainable development. efficient talent pool supporting the Company's leadership in (Person) (Person)
Adhering to the philosophy of "people-oriented co-creation intense market competition.and sharing" we have established a long-term platform for 284 447
mutual growth between employees and the Company through To establish a long-term incentive and accountability mechanism 3376 12827
comprehensive career development pathways a highly that fully mobilizes the initiative and creativity of directors
competitive compensation and benefits system and diversified senior management R&D and core technical personnel and key
incentive mechanisms. The Company emphasizes aligning operational staff the Company has implemented four phases of
individual development goals with corporate strategy. Beyond an Employee Reward Fund. This fund recognizes mid-to-senior 15472
providing a broad career stage it enhances employees' sense management core technical personnel outstanding frontline
of belonging and achievement through training empowerment marketing personnel both domestically and internationally and
long-term equity incentives variable compensation and individuals with exceptional contributions.Ordinary Employees Middle Management Mainland China Overseas and Hong
Senior Management Employees Kong Macau and
I nclude employee turnover rate Provide effective incentive P rovide professional Taiwan Employees
in the performance evalution mechanisms and award development support such as
for management bonuses or rewards to who career development plan tutor
have outstanding performance guidance and regular feedback
Number of employees by educational attainment Percentage of female employees at each level
Carry out salary Implement flexible working Conduct interviews with (Person) (%)
competitiveness evaluation hours allowing employees to departing employees to
regularly and ensure salary choose remote work flexible understand their primary 22.17 12.68
and bonus have good working as needed reasons for leaving and gather 800 44
competitiveness improvement measures
Employee Retention Measures for Hengtong Egypt 4433 10926
24.61
2024 Associate Degree or Below Bachelor's Degree Senior Management Ordinary Employees
Master's Degree Doctorate or Above Middle Management
Total Number of Employees New Hires
16203Person 2554Person
Indicator Unit 2024
Number of employees by gender (Person) Number of employees by age group (Person) Employee Turnover Rate Total Turnover Rate % 18.46
Male % 14.17
Employee Turnover Rate by
3592 12611 1804 4128 Gender Female % 4.29
Under 30 % 7.36
10271 Employee Turnover Rate by
Age Group 30–50 % 9.63
Over 50 % 1.47
Male Female Under 30 30–50
Over 50
92 93Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
4.2 Online Training: Established an online learning platform serving over 10000 employees
Empowering Growth and worldwide adding more than 400 new courses
Diverse In-Person Training: Regularly organize offline training sessions with senior executives serving
Development Learning as resident instructors to ensure knowledge transfer and management experience sharingApproaches In 2024 the Company innovatively implemented a mentor-apprentice system transforming
production workshops into training classrooms and work sections into practical learning
environments. By appointing chief engineers as mentors and cultivating "red craftsmen" this
Hengtong Optic-Electric consistently upholds the development philosophy that "talent is initiative effectively enhances employees' technical skills and hands-on experience
the foremost resource capital and strategy." By establishing a "three-in-one" talent system
and adhering to a talent-first strategy the Company creates diverse career pathways and
practical growth platforms for employees. This commitment fosters a continuous cultivation L everaging the Company's talent development platform we have established a dual-track
of a high-caliber highly skilled workforce providing an uninterrupted source of internal Precision cultivation system integrating management and technical expertise. This includes a team of over
Training 550 professionally certified instructors and developing more than 2400 standardized courses. momentum for the Company's sustainable high-quality development. Programs We have created premium training programs such as "Executive Lectures" "Senior Management Seminars" "High-Standard Study Tours" and "Advanced Workshops" enabling the coordinated
development of both managerial and technical talent
Operation Management Professional Technology Occupational Expertise
Through the "iron triangle" transformation model involving mentors supervisors and HR
Develop management Cultivate specialized talent Cultivate talents of high University Talent coaches alongside the four-stage reserve talent development program-"Launch Escort Lead talents with international focusing on cutting-edge skilled professionals and Succession and Voyage"-we annually assist over 50 technical professionals in successfully transitioning
experience and itegrity and industry developments pursuing excellence Development to management roles. This comprehensively builds sustainable career pathways covering the
competence and innovation research entire employee lifecycle
Hengtong Optic-Electric "Three-in-one" Talent System Hengtong Optic-Electric Talent Cultivation Mechanism
Employee Training While refining its internal training system Hengtong Optic-Electric comprehensively supports employees in advancing their education and obtaining professional certifications through diverse policies. These include providing external training
opportunities reimbursing related expenses and offering incentives for academic advancement thereby fostering employees'
Hengtong Optic-Electric continuously refines its employee training management system. The Company career development.has formulated and implemented relevant management systems including the Hengtong Optic-Electric
Training Management Measures establishing an online and offline training system covering all employees.It persistently optimizes talent development mechanisms to enhance employees' professional competence. Encourage relevant skilled personnel within the Company to participate in external training and
During the reporting period a total of 7044 training sessions were conducted reaching 136703 participants External obtain certifications (e.g. welder certification electrician certification PMP project manager
with an average of 54.01 training hours per employee. Training etc.). Upon certification employees may submit approved external training application forms
and payment records through the Company's reimbursement system to claim training expenses
I nternal offline training External online training Specialized seminar skill
knowledge sharing session Collaborate with multiple vocational colleges to implement "work-study alternation and on-
case study and policy the-job training" models promoting two-way job rotations and personnel exchanges between
dissemination session enterprises and institutions to establish a mutual industry-education cultivation mechanism
University P artner with Shanghai Jiao Tong University to organize training for Company general
Hengtong Optic-Electric Employee Training Channel Cooperation managers in the Advanced Executive MBA Program
Collaborate with Zhejiang University to organize training for executive succession candidates
in the Advanced Business Management Program
Academic Collaborated with Wuxi Vocational Institute of Arts & Technology and other institutions to
Advancement implement associate degree programs for frontline employees
Training and Cablescom (a subsidiary of Hengtong Optic-Electric in Spain) provides training scholarships for
Educational all full-time employees and their children
Advancement
Awards H engtong offers tuition reimbursement or leave support for employees obtaining industry-relevant professional certifications
Hengtong Optic-Electric Employee External Training and Academic Advancement Support
94 95Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
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To further help employees integrate theoretical knowledge with practical operations the Company has meticulously organized a
series of professional skill competitions. This initiative establishes a mechanism where "competition drives learning and learning Indicator Unit 2024
drives application" fostering exchange and learning among employees. It enhances teamwork and problem-solving capabilities
while cultivating a positive atmosphere of mutual learning and friendly competition. Simultaneously competition results provide Total Number of Training Participants People 136703
a scientific basis for the Company to accurately assess employee skill levels and identify high-potential talent. This effectively
supports the Company in developing targeted talent development plans and career advancement pathways.Total Number of Training Sessions Number 7044
Average Training Hours per Employee Hours 54.01
Average Training Hours per Female Employee Hours 54.96
Average Training Hours per Male Employee Hours 50.66
Employee Development
Hengtong Optic-Electric has established a systematic talent development framework and a dual-track career path combining
management and professional sequences. This is complemented by a rank system centered on self-assessment breaking the
traditional evaluation models focused solely on academic credentials and seniority. The system emphasizes "ability performance and
contribution" prioritizing employees' capacity to solve practical problems. A specialized evaluation scheme has been designed for
positions handling confidential information effectively broadening employees' career development opportunities.Concurrently the Company has implemented a scientific internal cross-position mechanism. Guided by the Hengtong Optic-
Electric Job Rotation Management Measures it provides cross-position practical opportunities for employees at all levels. This
approach cultivates versatile talents through exposure to diverse roles.Professional Skills Competition
96 97Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
4.3 Additionally the Company continues to conduct satisfaction surveys and analysis. Among these Jiangsu Hengtong Electric Power
Promoting Communication and Care Special Wire Co. Ltd. achieved an overall employee satisfaction rate of 89.7% in 2024 fully reflecting employees' recognition of the Company's current management practices. The survey indicates that employees generally maintain a positive work attitude and demonstrate a strong willingness to grow with the Company. The Company will further optimize relevant management measures
in a targeted manner to continuously enhance employee satisfaction and sense of belonging.Hengtong Optic-Electric strives to foster a warm and
harmonious environment for talent development Employee Care
safeguarding employees' rights and interests. We
actively listen to employee voices by establishing diverse The Company has established a non-salary benefits system in compliance with laws and regulations. Beyond providing
communication and feedback channels to ensure their statutor y benefits such as pension medical unemployment work-related injur y maternity insurance housing
opinions and suggestions are promptly conveyed. provident fund and annual leave it offers diverse additional benefits and care initiatives to all employees ensuring
Simultaneously the Company continuously refines its comprehensive protection of their rights and interests.compensation and benefits system while proactively
organizing employee care initiatives enabling staff to Statutory Benefits Additional Benefits
experience a sense of fulfillment belonging and happiness.Endowment insurance medical Holiday and birthday gifts high-temperature allowance apartment
insurance unemployment accommodation meal subsidies Spring Festival round-trip
insurance employment injury transportation reimbursement
Employee Communication insurance maternity insurance
and Housing Provident Fund; C omplimentary health checkups sports facilities and equipment
nursing leave annual leave F lexible working hours
To effectively promote two-way communication and positive The Company also actively promotes activities such as and other statutory holidays
interaction between the Company and its employees micro-innovation initiatives rationalization suggestions and Paternity leave (available to all employees)
Hengtong Optic-Electric has established a comprehensive "Golden Idea" proposals. These efforts ensure open channels
employee communication and consultation mechanism. for employees to voice concerns and suggestions creating a
This includes a multi-channel communication platform robust communication feedback loop. This approach provides The Company organizes a diverse array of employee cultural activities establishing ten major cultural clubs including the Dance
that includes company email hotline manager interviews strong support for building harmonious labor relations. Club Singing Club Study Group Micro-Video Creation Club Calligraphy and Painting Club Poetry Club Storytelling Club
democratic forums and direct employee feedback channels. Craftsman Club Warm e-Home Club and Literature Club. Through actively organizing cultural events holiday celebrations
and team-building activities we help employees achieve work-life balance alleviate job stress enhance communication and
Department heads conduct regular meetings with employees to promptly understand collaboration among colleagues and strengthen team cohesion and a sense of belonging.Face-to-face their work and personal circumstances address challenges and needs and provide
Consultation compassionate support
Mechanism The Human Resources Department organizes quarterly forums for young graduates to assess
their work and life status gather constructive feedback and concerns and ensure timely
resolution through relevant departments
Establish a direct suggestion channel accessible to all employees
For suggestions concerning internal company processes the Administration Department
conducts an initial review then forwards the suggestion to the relevant department based on Basketball Game Women's Day Activity Children's Day Activity
Direct Access its type for handling and tracking implementation
Mechanism
F or suggestions concerning external company processes the Organization and Performance
Department conducts an initial review then forwards the suggestion to the relevant
department based on its type for handling and implementation
Hold annual employee representative conferences
to actively hear and deliberate work reports recognize
Employee outstanding employees and track implement and
Representative publicly disclose employee proposals
Conferences
Disclose and explain new policies affecting employees'
vital interests and matters of widespread concern
promptly address reasonable suggestions raised by
employees and publicly announce the outcomes
of such actions Health Screening Professional Skills Training
Hengtong Optic-Electric Employee Communication Channel
98 99Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
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Growth Quality Future Development Responsibility
4.4
Occupational Health and Safety The Company regularly organizes occupational health examinations for employees establishes individual occupational health records and provides comprehensive safety protective equipment for all positions to ensure key health indicators remain within
controlled ranges. By continuously tracking core safety performance metrics such as the Lost Time Injury Rate (LTIR) and Lost
Work Time Injury Rate (LWIR) and comparing them against industry benchmarks the Company effectively evaluates management
Hengtong Optic-Electric steadfastly advances occupational health and safety initiatives strictly effectiveness and drives continuous improvement in occupational health and safety management standards.adhering to the Work Safety Law of the People's Republic of China the Law of the People's Republic
of China on the Prevention and Control of Occupational Diseases and regulatory requirements in its Quarterly or Every 6 Months Annually Every 3 Years
operational regions. The Company has enhanced its occupational health and safety management
system prioritizing employee well-being to ensure a secure and healthy environment for work and Conduct occupational health and Engage third-party agencies to Conduct an occupational safety
development. The Company continuously advances the implementation of the ISO 45001 system safety risk assessment conduct safety monitoring of assessment reportnoise temperature lighting and
and ensures its effective operation focusing on deepening system implementation promoting other factors
multi-system integration and driving the application of intelligent safety management. It has also
successfully passed the annual surveillance audit. During the reporting period multiple subsidiaries Frequency of Occupational Health and Safety Risk Assessments at Hengtong Optic-Electric
of Hengtong Optic-Electric have obtained ISO 45001 Occupational Health and Safety Management
System certification.Safety Management Safety Protection Provide employees with safety equipment including earplugs masks safety goggles and high-
Equipment temperature protective clothing
Hengtong Optic-Electric continuously improves its safety management mechanisms establishing a safety production responsibility Collaborate with manufacturers to pioneer an industry-first fully enclosed sealed protective cover
system with the Board of Directors as the highest accountability body. The Company strictly implements the safety production effectively preventing wire-drawing components from flying off. Acoustic insulation material added to
responsibility system clearly defining the safety duties and authority of personnel at all levels. Comprehensive safety management the inner surface significantly reduces noise and suppresses dust dispersion
measures are implemented across four dimensions: procedural management target management information management
and supplier and contractor management providing a solid foundation for the Company's sustainable development. In 2024 the Installed duct-type flame arresters to prevent fire spread caused by ignition of dust collection ducts
Company was elected as Vice President Unit of the Changshu Work Safety Management Association and multiple subsidiaries from oil-containing aluminum powder generated during wire drawing
were recognized as Outstanding Enterprises in Work Safety Management. Added full-enclosure protective screens to the take-up reel rotor bodies supplemented with safety
light curtains to establish a dual-protection mechanism
I mplement safety management for suppliers and contractors
to ensure their products and services meet the Company's
safety production requirements Safety I nstall safety warning signs around areas with potential hazardsWarning Signs
and Facilities A ffix warning labels to high-temperature production equipment and install protective barriers
E stablish a safety production information management system
to collect and analyze relevant data and information providing Safety
support for safety production decision-making Inspection A ll high-speed machinery equipped with infrared alarm systems
Devices O nline environmental monitoring devices installed at workshop noise and dust exposure points
Formulate clear safety production objectives and oversee AI cameras deployed for workshop hardhat compliance detection
and evaluate the implementation of these objectives
ISO 45001 Occupational Health and Safety I oT gateways utilized for substation temperature and humidity monitoring
Management System Certification
Hengtong Optic-Electric Safety Production Management Mechanism Flame detection alarm systems established for both domestic and imported furnaces
S urveillance cameras capable of detecting human presence (e.g. entry or fainting) to ensure confined
Hengtong Optic-Electric fully implements the safety production responsibility system strictly adheres to the "dual responsibilities for space operation safety *Sensors collect real-time data on power distribution room temperature
each position" and "three managements and three musts" safety management requirements and establishes a comprehensive safety humidity voltage current and transformer three-phase temperatures with sub-second precision. A
performance evaluation system for all employees. The Company enforces a "veto" system for major safety incidents and incorporates cloud-based platform builds equipment performance early-warning models and establishes multi-
safety production indicators into the performance evaluations of all staff. For department heads and senior management teams the tiered response mechanisms. A mobile app provides triple-alert functionality via WeChat SMS and
Company has established an annual safety performance point management system and developed a mechanism linking accident severity phone calls significantly enhancing power distribution room operational safety
levels to corresponding point deduction standards ensuring effective implementation of safety production responsibilities.Technical prevention measures are implemented for hazardous positions including protective covers
In 2024 the Company continues to advance systematic occupational health and safety (OHS) risk management. Potential hazards are and interlock devices for rotating machinery speed limiters and blue light alarms for forklifts and
comprehensively identified through job safety analysis on-site inspections employee reporting and industry benchmarking. A risk smart forklift early-warning systems
assessment matrix is used to quantify and classify risks enabling the formulation of targeted control measures. Simultaneously the Company
upgraded its safety monitoring system implementing real-time surveillance of critical risk points through IoT sensors and video monitoring
systems. Regular safety audits specialized inspections and management walkthroughs ensure effective implementation of all control measures. Hengtong Optic-Electric Safety Production Measures (Partial)
A digital platform tracks and analyzes incidents and hazards enabling continuous optimization of the management system.
100 101Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
Safety Culture
Hengtong Optic-Electric consistently undergoes and successfully passes specialized inspections from government departments Based on safety monitoring and occupational health and safety assessments the Company continuously improves its safety
including emergency management environmental protection health and wellness and fire safety as well as rigorous supplier culture dynamically optimizes safety procedures training content and emergency response plans. Through safety-themed
system audits by major clients. The Company also undergoes regular professional assessments by third-party certification bodies. activities such as "Work Safety Month" and "Safety Consultation Day" for all employees along with regular safety knowledge
These multidimensional high-intensity and routine occupational health and safety audits cover both management systems and training it comprehensively enhances employee safety awareness and skills. The Company has established an emergency
on-site execution serving as a critical mechanism for evaluating the Company's occupational health and safety management response mechanism encompassing contingency planning specialized rescue team development and practical drills.operations and performance. Additionally a detailed annual safety training plan is formulated at the beginning of each year. Through multiple measures the
Company continuously strengthens employees' emergency response capabilities committed to building a healthier and safer
Furthermore we require suppliers to strictly adhere to occupational health and safety standards equivalent to those of Hengtong working environment for all staff.Optic-Electric ensuring a safe working environment for employees and implementing effective measures to prevent workplace
accidents occupational health hazards and work-related illnesses.No. Training Course Training goal Trainee Time
1 Traffic Safety Training Strengthen employees' awareness of safety during commuting All Employees January 2024
2 Resumption of Work and Enhance employees' safety
Suppliers shall obtain safety management system certification and establish a safety production management team led by Production Training awareness after returning to work
Frontline Employees February 2024
a company-level executive with at least one worker representative included. This team shall assess and control potential Strengthen safety management
hazards related to waste materials chemicals special equipment production machinery and other factors developing and enhance the knowledge and
appropriate procedural documents and preventive measures to mitigate risks and improve the working environment. proficiency of volunteer firefighters Volunteer Firefighters
3 Fire Safety Training in fire safety; improve employees' Safety Officers All April 2024
awareness of self-defense and self- Employees
rescue in fire prevention and their
ability to resist fires
4 Hazardous Chemicals Strengthen the safety awareness of Management Training chemical administrators Chemical Managers May 2024
S uppliers shall conduct regular formal safety training for employees maintain occupational safety training records and
document corrective and preventive measures in a manual for proper retention. Specialized personnel must undergo Strengthen the safety awareness
professional training and obtain certification before formal employment. of personnel engaged in special
5 Special Operations Safety operations such as forklift Special Operations Training operation pressure vessel Personnel June 2024
maintenance electrical work and
work at heights
6 Summer Work Safety Training Strengthen employees' common sense of safe production in summer Frontline Employees July 2024
Suppliers shall provide appropriate personal protective equipment free of charge to employees and establish emergency
response plans. In case of workplace injuries emergency medical care shall be provided and employees shall be assisted Incorporate optimized and updated
in obtaining follow-up medical treatment. 7 Safety Operating Procedures safety operating procedures Training for Each Process to enhance employees' safety Frontline Employees August 2024
operation skills
Strengthen employees' safety
8 Pre-National Day Safety Training awareness during the National Day holiday and safety requirements for All Employees September 2024
Suppliers shall provide all employees with free access to clean toilet facilities potable water and suitable spaces for meals resuming work after the holiday
and rest. Regardless of the nature of employee dormitories all provided dormitory facilities must be clean safe and meet
employees' basic needs. 9 Anti-Fraud Awareness Training Strengthen employees' awareness of anti-fraud All Employees November 2024
10 Safety Incident Warning Training Strengthen employees' awareness of safe production All Employees December 2024 Hengtong Optic-Electric Supplier Health and Safety Standards
Hengtong Optic-Electric 2024 Safety Training Plan
102 103Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
CASE 2024 Hengtong Optic-Electric Safety Theme Activities CASE Safety Culture Activities at Hengtong Optic-Electric's Indian Subsidiary
During the reporting period the Company conducted a variety of safety-themed activities including signing safety Hengtong Optic-Electric's Indian subsidiary continues to promote employee safety culture initiatives. During National
responsibility agreements holding five-minute pre-shift and post-shift safety briefings launching the "Safety Month in Action" Safety Week the subsidiary organized first-aid training sessions to enhance employees' safety awareness and
initiative and organizing the Work Safety Month theme event alongside the second-quarter Safety Committee meeting and emergency response capabilities. Additionally on International Yoga Day the subsidiary hosted yoga activities to help
third-quarter Work Safety Committee meeting. These efforts effectively enhanced safety awareness among all employees. employees alleviate work-related stress and foster holistic physical and mental well-being.Additionally the Company organized a series of safety-related competitions such as the Jiangsu Provincial Skills Competition
Red Card Campaign Forklift Skills Competition and Equipment Skills Competition. These initiatives continuously improved
employees' operational safety skills solidifying the foundation for the Company's safe development.National Safety Week First-aid International Yoga Day Celebration
Training
The Company organizes diverse safety emergency drills and training sessions covering all employees to comprehensively enhance
their emergency response capabilities.In 2024 the Company continued to strengthen occupational safety protections for employees investing 7.1262 million yuan in
workers' compensation insurance throughout the year to achieve 100% coverage. Concurrently 1.0629 million yuan was allocated
CASE for production safety liability insurance ensuring comprehensive coverage for all employees. In safety management the Company Jiangsu Hengtong Electric Power Special Wire Co. Ltd. Safety Emergency Drill recorded zero work-related fatalities. Through safety drills and training programs it comprehensively enhanced employees' safety
awareness and emergency response capabilities providing robust support for ensuring the safe and stable operation of production
Jiangsu Hengtong Electric Power Special Wire Co. Ltd. invited the Qidu Fire Brigade to conduct fire drill training activities.educating employees on fire safety knowledge. The session demonstrated how to extinguish fires using fire hydrants
hoses and nozzles in the workshop and organized simulated emergency evacuation drills.Additionally the Company conducted specialized drills tailored to its production processes including emergency Indicator Unit 2022 2023 2024
response exercises for upper drawing operations and natural gas leak scenarios. By simulating real-world situations
these drills enhanced employees' emergency response capabilities ensuring they can swiftly self-rescue during crises.This initiative significantly strengthened employees' safety awareness and self-rescue/mutual-aid skills providing Number of work-related fatalities People 0 0 0
robust safeguards for the Company's production safety.Number of safety emergency drills
conducted Number 392 407 142
Number of safety training sessions
conducted Number 182 211 725
Total hours of safety training Hour 364 422 1650
Fire Drill Upper Drawing Process Emergency Natural Gas Leak Emergency
Drill Response Drill
104 105Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
05
Global
Cooperation:
Demonstrating Hengtong's
Responsibility
Hengtong Optic-Electric maintains a global
development perspective striving to establish
a sustainable development framework that
integrates domestic and international efforts.Through continuous investment in public
welfare charitable initiatives volunteer services
and industrial assistance the Company has
fostered a virtuous cycle between corporate
growth and societal progress. Furthermore
guided by ESG principles Hengtong Optic-
Electric promotes collaborative advancement
across the entire industrial chain contributing
its expertise to global sustainability. This fully
demonstrates the Company's commitment
to responsibility and its leadership within the
industry.Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
5.1 Additionally the Company is deeply committed to ecological conservation and green public welfare initiatives integrating environmental protection principles into its corporate practices. For years we have consistently organized tree-planting campaigns
Social Contribution and Rural and volunteer tree-planting activities taking concrete actions to build ecological barriers and contribute green energy to the construction of a Beautiful China. Simultaneously the Company actively promotes green commuting and energy-saving low-carbon concepts fostering a positive atmosphere where all employees participate in green living.Revitalization
Hengtong Optic-Electric continues to make efforts in the fields of social contribution
and rural revitalization persistently fostering a virtuous cycle between enterprise
development and social progres.Social Contribution
Eighth Phase of the Hengtong Forest
The Company continuously advances in social contribution and rural revitalization fostering a virtuous cycle between corporate Initiative
development and societal progress. Employees are organized into volunteer service teams and encouraged to participate in
public welfare activities such as blood donation Lei Feng-inspired volunteer services senior care visits and community assistance
programs demonstrating social care through concrete actions. These sustained volunteer initiatives effectively promote
community harmony and strengthen social trust. During the reporting period the Company and its subsidiaries contributed over 5
million yuan through charitable foundations.Hengtong Changshu International Marine
Industrial Park and Dongzhang Central
Primary School Arbor Day Special Event
Certificate of Honor for Supporting Lei Feng Day Volunteer Activities Volunteer Service Team of Jiangsu
Elderly Care Hengtong Power Cable Co. Ltd.Double Ninth Festival Greeting Event Voluntary Blood Donation Drive 2024 Wujiang District Youth Tree-Planting and
Greenery Protection Volunteer Activity
108 109Hengtong Optic-Electric Co. Ltd. Compliance and Stability: Leading Innovation: Low-Carbon Development: Caring for Employees: Global Cooperation:
2024 Environmental Social and Governance Report The Foundation for Steady Creating Leading Illuminating a Green Promoting Inclusive Demonstrating Hengtong's
Growth Quality Future Development Responsibility
Rural Revitalization 5.2
The Company fully leverages its industrial strengths and Promoting Industrial Sustainable
draws on social resources to promote balanced urban-
rural development. Its assistance initiatives span multiple
domains including industrial development educational Development
support healthcare services and grassroots governance.During the reporting period as a long-term recognized Hengtong Optic-Electric remains steadfastly committed to sustainable development as
outstanding supplier of China Mobile the Company was its guiding principle closely aligning with customer needs and national green policy
awarded the "China Mobile Partner Rural Revitalization directives to comprehensively deepen its green strategic deployment. In 2024 the
Contribution Gold Award" for its sustained investment
and achievements in rural revitalization efforts. This Company centered its efforts on green manufacturing extending the concept of green
accolade fully demonstrates the Company's outstanding development across all business domains-including green products green supply
contributions to advancing shared development and chains green power and digital-intelligent management platforms. This approach
sustainable progress between urban and rural areas. has driven green premium pricing and low-carbon transformation across operations
effectively enhancing value creation in existing industries while injecting sustained
momentum into the high-quality development of new business ventures.China Mobile Partner Rural Revitalization
Contribution Gold Award As an active promoter in the ESG field Hengtong spearheaded Hengtong Optic-Electric has achieved remarkable results in
the establishment of the Suzhou Enterprise Sustainable sustainable development with continuous improvements in
Development Federation and serves as its Executive Vice corporate governance standards and practical capabilities. In
President unit. It actively plays a leading and exemplary role 2024 the Company secured an upgraded MSCI rating and saw its
collaborating with local governments and corporate partners to EcoVadis score increase by 11 points earning the "Rapid Progress
explore sustainable development pathways. Simultaneously as Award." Meanwhile the Company received prestigious honors
Case 2024 Rural Revitalization Assistance and Donations an expert judge for the China Federation of Industrial Economics' including the "Annual Corporate Governance Excellence Award"
2024 China Industrial Carbon Peak "Leader" Enterprise Selection in Jiemian News' "2024 ESG Pioneer 60" "Best Listed Company"
Program the Company actively engages in technical exchanges and "ESG Best Practice" awards from New Fortune Magazine as
Actively participated in China Telecom's supplier industry assistance program donating 300000 yuan to consolidate with domestic and international rating and certification bodies well as the "ESG Excellence Enterprise" award in the new energy
poverty alleviation achievements; such as MSCI S&P CTTL SGS Dun & Bradstreet and CITIC sector from Dun & Bradstreet & SMM. These accolades validate
Securities. This commitment aims to build an ESG system that the Company's substantial progress in ESG management
Donated 200000 yuan to the Hanbin District Charity Association in Ankang City Shaanxi Province supporting local better aligns with China's national conditions while meeting and further highlight its exemplary role in advancing industry
poverty alleviation and rural revitalization efforts; international standards. By leading industrial parks industry standardization transparency and replicability.S upported China Mobile's targeted assistance and poverty alleviation projects cumulatively donating nearly platforms and SMEs in collective participation we leverage ESG
one million yuan in areas including Huanan County Heilongjiang Province; Shule County Xinjiang; and Baisha Li as a catalyst to continuously advance the healthy and sustainable
Autonomous County Hainan Province; development of the business community.Hengtong Optic-Electric's subsidiary in South Africa Aberdare also spared no effort in fulfilling corporate In external engagement and industry promotion the Company
responsibilities continuously investing in the "Abercare" and "Aberschool" initiatives. Total related donations from deepens the dissemination and application of ESG practices
2018 to 2024 amounted to 7.92 million Rand; expanding its social and industry influence. Hengtong Optic-Electric actively shares ESG innovation achievements
P T Maju Bersama Gemilang Hengtong Optic-Electric's subsidiary in Indonesia provided fund support for Indonesia's showcasing ESG case studies at the "2024 Suzhou Global
local livestock industry; Investment Conference" and participating in high-level forums
including EY's 3rd Sustainability Officers Summit for Listed
HT Cabos E Tecnologia LTDA Hengtong Optic-Electric's subsidiary in Brazil held a donation event for the Hope Companies CITIC Securities Green Finance and Sustainable
Primary School in a S?o Paulo favela. Development Conference the Yangtze River Delta Green
Enterprise Overseas Expansion Seminar and the 2024 China
International Import Expo. We advocate an ESG model that
"transitions from individual enterprises to value chains and
industrial clusters" encouraging more companies to integrate
social responsibility into their commercial value creation.
110 111Hengtong Optic-Electric Co. Ltd. Annex
2024 Environmental Social and Governance Report
Annex
Disclosure Item Disclosure Topic Topic Corresponding Section
Compliance and Stability: The Foundation for
Appendix I: GRI Standards Index 2-23 Policy Commitments Steady Growth-ESG Governance Stakeholder Engagement Business Ethics
Compliance and Stability: The Foundation for
2-24 Embedding Policy Commitments Steady Growth-ESG Governance Stakeholder
Disclosure Item Disclosure Topic Topic Corresponding Section Engagement Business Ethics
GRI 2: General Disclosure 2021
2-26 Mechanisms for Seeking Advice and Raising Concerns Compliance and Stability: The Foundation for
The Organization and Its Reporting Practices Steady Growth-Business Ethics
2-1 Organizational Details About This Report Global Cooperation: Demonstrating Hengtong's
2-28 Membership Association Responsibility-Promoting Industrial Sustainable
2-2 Entities Included in the Organization's Sustainability Report About This Report Development
2-3 Reporting Period Frequency and Contact Point About This Report Stakeholder Engagement
Activities and Workers
2-29 Approach to Stakeholder Engagement Compliance and Stability: The Foundation for
Steady Growth-Stakeholder Engagement
2-6 Activities Value Chains and Other Business Relationships About Hengtong Optic-Electric
2-30 Collective Bargaining Agreement Caring for Employees: Promoting Inclusive
Development-Talent Attraction and Retention
2-7 Employees Caring For Employees: Promoting Inclusive
Development-Talent Attraction and Retention GRI 3: Material Topic 2021
Governance 3-1 Process to Determine Material Topics Compliance and Stability: The Foundation for
Steady Growth-Stakeholder Engagement
2-9 Governance Structure and Composition Compliance and Stability: The Foundation for
Steady Growth-Corporate Governance 3-2 List of Material Topics Compliance and Stability: The Foundation for
Steady Growth-Stakeholder Engagement
2-10 Nomination and Selection of the Highest Governance Compliance and Stability: The Foundation for
Body Steady Growth-Corporate Governance 3-3 Management of Material Topics Compliance and Stability: The Foundation for
Steady Growth-Stakeholder Engagement
2-12 Role of the Highest Governance Body in Overseeing the Compliance and Stability: The Foundation for
Management of impacts Steady Growth-Corporate Governance GRI 201: Economic Performance 2016
Compliance and Stability: The Foundation for 201-1 Direct Economic Value Generated and Distributed About Hengtong Optic-Electric2-13 Delegating Responsibility for Managing Impact
Steady Growth-Corporate Governance
201-2 Financial Implications and Other Risks and Opportunities Low-Carbon Development: Illuminating a Green
Role of the Highest Governing Body in Sustainability Compliance and Stability: The Foundation for Due to Climate Change Future-Climate Change and Carbon Neutrality2-14
Reporting Steady Growth-ESG Governance GRI 202: Market Presence 2016
Compliance and Stability: The Foundation for
202-1 Ratio of Standard Entry Level Wage by Gender Compared Caring for Employees: Promoting Inclusive
2-15 Conflicts of Interests Steady Growth-Business Ethics to Local Minimum Wage Development-Promoting Communication and Care
Leading Innovation: Creating Leading Quality-
Supply Chain Management GRI 203: Indirect Economic Impacts 2016
Compliance and Stability: The Foundation for 203-1 Infrastructure Investment and Support Services Global Cooperation: Demonstrating Hengtong's 2-16 Communication of Critical Concerns
Steady Growth-Corporate Governance Responsibility
Compliance and Stability: The Foundation for GRI 204: Procurement Practices 2016
2-17 Collective Knowledge of the Highest Governance Body
Steady Growth-ESG Governance
204-1 Proportion of Spending on Local Suppliers Leading Innovation: Creating Leading Quality-
2-19 Remuneration Policy Caring for Employees: Promoting Inclusive
Supply Chain Management
Development-Promoting Communication and Care
GRI 205: Anti-corruption 2016
2-20 Process to Determine Remuneration Caring for Employees: Promoting Inclusive
Development-Talent Attraction and Retention 205-1 Operations Assessed for Risks Related to Corruption Compliance and Stability: The Foundation for
Steady Growth-Business Ethics
Strategy Policies and Practices
205-2 Communication and Training about Anti-corruption Compliance and Stability: The Foundation for
Compliance and Stability: The Foundation for Policies and Procedures Steady Growth-Business Ethics2-22 Statement on Sustainable Development Strategy
Steady Growth-ESG Governance
1 12 113Hengtong Optic-Electric Co. Ltd. Annex
2024 Environmental Social and Governance Report
Disclosure Item Disclosure Topic Topic Corresponding Section Disclosure Item Disclosure Topic Topic Corresponding Section
GRI 206: Anti-competitive Behavior 2016
306-3 Waste Generated Low-Carbon Development: Illuminating a Green
206-1 Legal Actions for Anti-competitive Behavior Anti-trust Compliance and Stability: The Foundation for
Future-Emission Management and Recycling
and Monopoly Practices Steady Growth-Business Ethics
306-4 Waste Diverted from Disposal Low-Carbon Development: Illuminating a Green
GRI 302: Energy 2016 Future-Emission Management and Recycling
Low-Carbon Development: Illuminating a Green GRI 308: Supplier Environmental Assessment 2016302-1 Energy Consumption within the Organization
Future-Energy Efficiency and Transformation
308-1 New Suppliers that were Screened Using Environmental Leading Innovation: Creating Leading Quality-
Low-Carbon Development: Illuminating a Green Criteria Supply Chain Management302-3 Energy Intensity
Future-Energy Efficiency and Transformation GRI 401: Employment 2016
302-4 Reducing of Energy Consumption Low-Carbon Development: Illuminating a Green 401-1 New Employee Hires and Employee Turnover Caring for Employees: Promoting Inclusive Future-Energy Efficiency and Transformation Development-Talent Attraction and Retention
302-5 Reductions in Energy Requirements of Products and Low-Carbon Development: Illuminating a Green 401-2 Benefits Provided to Full-Time Employees that are not Caring for Employees: Promoting Inclusive Services Future-Energy Efficiency and Transformation Provided to Temporary or Part-time Employees Development-Promoting Communication and Care
GRI 303: Water Resources and Wastewater 2018
403-3 Parental Leave Caring for Employees: Promoting Inclusive
Low-Carbon Development: Illuminating a Development-Promoting Communication and Care
303-2 Management of Water Discharge-related Impacts Green Future-Water-Saving Transformation and GRI 403: Occupational Health and Safety 2018
Optimization
403-1 Occupational Health and Safety Management System Caring for Employees: Promoting Inclusive Low-Carbon Development: Illuminating a Development-Occupational Health and Safety
303-3 Water Withdrawal Green Future-Water-Saving Transformation and
Optimization 403-2 Hazard Identification Risk Assessment and Incident Caring for Employees: Promoting Inclusive
Investigation Development-Occupational Health and Safety
303-4 Water Discharge Low-Carbon Development: Illuminating a Green
Future-Emission Management and Recycling 403-3 Occupational Health Services Caring for Employees: Promoting Inclusive
Development-Occupational Health and Safety
Low-Carbon Development: Illuminating a
303-5 Water Consumption Green Future-Water-Saving Transformation and 403-5 Worker Training on Occupational Health and Safety Caring for Employees: Promoting Inclusive
Optimization Development-Occupational Health and Safety
GRI 305: Emission 2016 403-6 Promoting of Worker Health Caring for Employees: Promoting Inclusive
Development-Occupational Health and Safety
305-1 Direct (Scope 1) GHG Emissions Low-Carbon Development: Illuminating a Green
Future-Climate Change and Carbon Neutrality 403-7 Prevention and Mitigation of Occupational Health and Caring for Employees: Promoting Inclusive
Safety Impacts Directly Linked by Business Relationships Development-Occupational Health and Safety
305-2 Energy Indirect (Scope 2) GHG Emissions Low-Carbon Development: Illuminating a Green
Future-Climate Change and Carbon Neutrality 403-8 Workers Covered by an Occupational Health and Safety Caring for Employees: Promoting Inclusive
Management System Development-Occupational Health and Safety
305-4 GHG Emissions Intensity Low-Carbon Development: Illuminating a Green
Future-Climate Change and Carbon Neutrality Caring for Employees: Promoting Inclusive 403-9 Work-Related Injuries
Development-Occupational Health and Safety
305-5 Reduction of GHG Emissions Low-Carbon Development: Illuminating a Green
Future-Climate Change and Carbon Neutrality 403-10 Work-Related Ill Health Caring for Employees: Promoting Inclusive
Development-Occupational Health and Safety
Nitrogen Oxides (NOx) Sulfur Oxides (SO ) and Other Low-Carbon Development: Illuminating a Green 305-7 xSignificant Air Emissions Future-Climate Change and Carbon Neutrality GRI 404: Training and Eduction 2016
GRI 306: Waste 2020 Caring for Employees: Promoting Inclusive
404-1 Average Hours of Training per Year per Employee Development-Empowering Growth and
306-1 Waste Generation and Significant Waste-related Impacts Low-Carbon Development: Illuminating a Green Development
Future-Emission Management and Recycling
Low-Carbon Development: Illuminating a Green 404-2 Programs for Upgrading Employee Skills and Transition
Caring for Employees: Promoting Inclusive
306-2 Management of Significant Waste-related Impacts Assistance Programs Development-Empowering Growth and Future-Emission Management and Recycling Development
404-3 Percentage of Employees Receiving Regular Performance
Caring for Employees: Promoting Inclusive
and Career Development Reviews Development-Empowering Growth and
Development
1 14 115Hengtong Optic-Electric Co. Ltd. Annex
2024 Environmental Social and Governance Report
Disclosure Item Disclosure Topic Topic Corresponding Section Appendix II: Index of Shanghai Stock Exchange Guidelines
GRI 405: Diversity and Equal Opportunity 2016
405-1 Diversity in Governance Bodies and Employees Caring for Employees: Promoting Inclusive
Development-Talent Attraction and Retention Disclosure Items Corresponding Chapters
405-2 Ratio of Basic Salary and Remuneration of Women to Caring for Employees: Promoting Inclusive
Men Development-Promoting Communication and Care Climate Response Low-Carbon Development: Illuminating a Green Future-Climate Change and Carbon Neutrility
GRI 406: Non-discrimination 2016
Pollutant Discharge Low-Carbon Development: Illuminating a Green Future-Emission Management and Recycling
406-1 Incidents of Discrimination and Corrective Actions Taken Compliance and Stability: The Foundation for
Steady Growth-Business Ethics
Waste Disposal Low-Carbon Development: Illuminating a Green Future-Emission Management and Recycling
GRI 407: Freedom of Association and Collective Bargaining 2016
Low-Carbon Development: Illuminating a Green Future-Environmental
407-1 Operations and Suppliers in which the Right to Freedom Caring for Employees: Promoting Inclusive
Ecosystem and Biodiversity Protection Protection and Management
of Association and Collective Bargaining may be at Risk Development-Talent Attraction and Retention
Environmental Compliance Management Low-Carbon Development: Illuminating a Green Future-Environmental
GRI 408: Child Labor 2016 Protection and Management
408-1 Operations and Suppliers at Significant Risk for Incidents Caring for Employees: Promoting Inclusive Energy Utilization
Low-Carbon Development: Illuminating a Green Future-Energy Efficiency and
of Child Labor Development-Talent Attraction and Retention Transformation
Low-Carbon Development: Illuminating a Green Future Water-saving
GRI 409: Forced or Compulsory Labor 2016 Water Resource Utilization Transformation and Optimization
409-1 Operations and Suppliers at Significant Risk for Incidents Caring for Employees: Promoting Inclusive Circular Economy Low-Carbon Development: Illuminating a Green Future-Emission Management
of Forced or Compulsory Labor Development-Talent Attraction and Retention and Recycling
GRI 413: Local Communities 2016 Rural Revitalization Global Collaboration: Demonstrating Hengtong's Responsibility-Social Contribution and Rural Revitalization
413-1 Operations with Local Community Engagement Impact Global Cooperation: Demonstrating Hengtong's Global Collaboration: Demonstrating Hengtong's Responsibility-Social
Assessments and Development Programs Responsibility Social Contributions Contribution and Rural Revitalization
GRI 414: Supplier Social Assessment 2016
Innovation Leading Innovation: Creating Leading Quality-Sustainable Innovation
414-1 New Suppliers that were Screened Using Social Criteria Leading Innovation: Creating Leading Quality-
Supply Chain Management Ethics of Science and Technology Leading Innovation: Creating Leading Quality-Sustainable Innovation
GRI 416: Customer Health and Safety 2016
Supply Chain Security Leading Innovation: Creating Leading Quality-Supply Chain Management
416-1 Assessment of the Health and Safety Impacts of Product Leading Innovation: Creating Leading Quality-
and Service Categories Supply Chain Management and Quality Control
Equal Treatment of SMEs Leading Innovation: Creating Leading Quality - Supply Chain Management
416-2 Incidents of Non-Compliance Concerning the Health and Leading Innovation: Creating Leading Quality-
Safety Impacts of Products and Services Supply Chain Management and Quality Control Product and Service Safety and Quality Leading Innovation: Creating Leading Quality - Quality Control Customer Service and Information Protection
GRI 417: Marketing and Labeling 2016
Data Security and Customer Privacy Leading Innovation: Creating Leading Quality - Customer Service and Information Protection
417-1 Requirements for Product and Service Information and Leading Innovation: Creating Leading Quality-
Labeling Quality Control
Employees Caring for Employees: Promoting Inclusive Development
417-2 Incidents of Non-compliance Concerning Product and Leading Innovation: Creating Leading Quality-
Service Information and Labeling Quality Control Due Diligence Leading Innovation: Creating Leading Quality - Supply Chain Management
Incidents of Non-compliance Concerning Marketing Leading Innovation: Creating Leading Quality-
Communications Quality Control Stakeholder Engagement Compliance and Stability: The Foundation for Steady Growth - Stakeholder Engagement
GRI 418: Customer Privacy 2016
Anti-commercial Bribery and Anti-corruption Compliance and Stability: The Foundation for Steady Growth - Business Ethics
Substantiated Complaints Concerning Breaches of Leading Innovation: Creating Leading Quality-
Customer Privacy and Losses of Customer Data Customer Service and Information Protection
Fair Competition Compliance and Stability: The Foundation for Steady Growth - Business Ethics
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