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爱旭股份:2022年度环境、社会及公司治理(ESG)报告(英文版)

公告原文类别 2023-03-14 查看全文

2022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report About this Report

About this Report

Introduction Data Processing Notes on Designations

This is the first Environmental social and governance All financial data referenced herein shall be subject to

(ESG) report (this “Report”) issued by Shanghai Aiko the annual report. All amounts are expressed in Chinese

Solar Energy Co. Ltd. (the “Company”) to disclose and yuan unless otherwise stated. Environmental data are Full name Short name

demonstrate its ESG performance to stakeholders. This calculated in accordance with national or industrial

report has been reviewed by the Board of Directors of the standards such as the General Principles for Calculation Shanghai Aiko Solar Energy Co. Ltd. Aiko Solar Aiko Company We or Us

Company which is responsible for the authenticity and of Total Production Energy Consumption (GB/T 2589-

validity of the information contained herein. 2020) and the National Development and Reform Guangdong Aiko Solar Energy Technology Co. Ltd Guangdong Aiko Foshan Base

Commission Guidelines for Accounting and Reporting

Greenhouse Gas Emission (trial implementation). Any Zhejiang Aiko Solar Energy Technology Co. Ltd. Zhejiang Aiko Zhejiang Base

inconsistency between the Chinese and English versions

Period of this Report shall be subject to the Chinese version. Tianjin Aiko Solar Energy Technology Co. Ltd. Tianjin Aiko Tianjin Base

Zhuhai Fushan Aiko Solar Energy Technology Co. Ltd. Zhuhai Fushan Aiko Zhuhai Base

The period covered by this Report is from January 01 Basis

2022 to December 31 2022 with some exceptions.

Guidel ines of Shanghai Stock Exchange for the

Preparation of Reports on the Fulfillment of Social

Scope Responsibilities by Companies Report Publication Feedback from Readers

The Global Reporting Initiative (GRI) Sustainability

Reporting Standards (“GRI Standards”)

This Report covers Shanghai Aiko Solar Energy Co. Ltd.and its subsidiaries a scope identical to the scope of its This Report is issued electronically which is available on In this Report themes that interest different stakeholders The Environmental Social and Governance Reporting

consolidated financial statements. http://www.aikosolar.com/. are considered to the largest extent. You are encouraged Guide of the Stock Exchange of Hong Kong Limited to give your comments on this Report because your

Reports from the Task Force on Climate-related Financial comments can help the Company enhance its level of

Disclosures ESG disclosures and advance its ESG management

Data Sources and practices. Please provide your comments and

feedback by sending a completed Reader Feedback

Form attached hereto to ESG@aikosolar.com.All information and data used in this Report are from the

formal documents internal statistics and publicly disclosed

documents of the Company.

01 022022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Message from the Chairman

Message from

the Chairman

With extreme weather events frequently happening around the world responding to climate change for the sustainable carbon society. Furthermore it focuses on the construction of core solution capabilities and is open to cooperations within its

development has become a global consensus. A broad and profound reform on a systematic basis in China has been ecosystem keeping a close eye on advancements regarding innovations of product solutions development of processes

launched under the "dual carbon" goals for low-carbon transformation. Driven by the “dual carbon” goals the course of operation of digital platforms business model innovations and integration of industrial chain which is expected to help move

new energy development prospered in China in 2022. As an important contributor of the PV industry Aiko Solar strives to the development of clean energy industry.be a global leader in the industry and with the mission of bringing surging momentum to the zero-carbon society. It adheres

to the concept of sustainable development anchors the clean energy track and combines refined production at scale Concentrate on People Development that Helps Business Growth

and innovations of mass production technologies to provide efficient solar cell products for the industry and promote the The growth of employees is the permanent powerhouse for the sustainable development of a business. Aiko Solar

upgrading and sustainable development of the clean energy industry. attaches great importance to people by having created an employee development system consisting of four modules i.e.Explore Innovation DNAs that Empower the Green Development leader management learning development talent assessment and qualifications. Backed further by an online knowledge

management platform the Company performs employee training of all levels including new employee onboarding

Guided by the sustainable development concept Aiko Solar has always focused on the main channel of solar cell R&D professional skills and leadership which help employees gain growth and happiness in their work. It has created a system

and manufacturing adhering to the innovative gene to create powerful technology and continuously leading product and for identifying fostering and rapidly develop people to speed up their growth and to pave a foundation for the sustainabletechnological changes in the industry. In 2022 the Company released ABC cell-based modules and “source-grid-load- development of the Company while helping them realize their own value.storage” photovoltaic energy overall solutions to better meet the requirements of high-end and mid-end PV scenarios. This is

a part of our efforts to practice our climate actions and release the green development potential. This product not only further Aiko Solar will keep advocating executing and leading the sustainable development of the clean energy field by swiftly

enhances the company's core competitiveness in technology but also marks that Aiko Solar has brought surging momentum responding to climate actions and getting hold of relevant opportunities. It will lead the innovation of photovoltaic products

to the zero-carbon society with continuous breakthroughs in mass production efficiency. and technology and accelerate the transformation from a professional cell manufacturer to a professional cell manufacturer

and a provider of photovoltaic energy overall solutions thereby helping the construction of low-carbon cities. In collaboration

Hold Digital Opportunity that Drives the Industrial Development with all possible partners it strives to redefine the energies we use and change our life to march toward the zero-carbon

future!

As one of pioneers for digital transformation Aiko Solar provides full process digital experience for customers and partners

by helping them create the full life cycle digital management mode that ranges from design transaction order fulfillment and ——Chen Gang Chairman of Shanghai Aiko Solar Energy Co. Ltd.operation and maintenance and offer them with improved services. In addition digital transformation can bring lowered costs

and higher efficiency to make contribution to the world's low carbon and green development and the construction of a zero-

03 042022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report About Aiko Solar

History

About Aiko Solar

20222020

ABC modules and ‘source-grid-load-storage’ The Company had the global debut of its

photovoltaic energy overall solutions were 210mm monocrystalline PERC cells; Aiko

released. Europe Institute and Joint PV Innovation

Company Profile Center were founded.Shanghai Aiko Solar Energy Co. Ltd. (Stock code: 600732.SH) is one of major suppliers of solar cells across the world

with industry-leading technologies for manufacturing and supplying PV cells and its business spanning across the R&D

production and sale of solar cells. 2021 2019

Setting its foot on the dual carbon goals the Company moves along the low-carbon path and focuses on technological Zhuhai Fushan Aiko Solar Energy Aiko Solar pioneered the testing

innovations and product innovations in particular efficient solar cells to advance the healthy development of the PV industry. Technology Co. Ltd. was established. and sorting of bifacial solar cells

In addition the Company creates ‘source-grid-load-storage’ photovoltaic energy overall solutions around the novel ABC The new generation type-N ABC solar and achieved 100% application.cell technology to address the excessive energy consumption low power generation efficiency and low returns caused by cells with high conversion efficiency

the mismatches of energy flow and information flow between the power generation end and consumer end in the energy were released.applications. With four production bases in Foshan Yiwu Tianjin and Zhuhai the Company has its products which are

extensively welcomed by global producers of crystalline silicon modules sold to South Korea Japan India and European

countries with a total export of over 80GW it secures a leading position in terms of the export of solar cells.Overview of Products

20172018

The Company started the mass production of The Company started the mass production

PERC Cells monocrystalline PERC cells ranked the first in and shipment of its bifacial PERC cellsexports of high-efficiency PERC cells in China and becoming one of major vendors in the third”

With its industry-leading capabilities for the development manufacturing and sale of PERC cells Aiko Solar has realized the ranked the 317th place in the “Global Top 500 New Lead-Runner Project”. It ranked the first inmass production of efficient PERC monofacial cells and bifacial cells which makes it the first manufacturer that applies the Energy Companies 2017”. the world in terms of the shipment of both

tubular PERC technology to the mass production of these solar cells in the world. What is more its successful development PERC cells and bifacial cells.of technologies that are able to upgrade 166mm cells to 182mm cells and to make cells thinner can help with the flexible

capacity shift between 182mm cells and 210mm cells.ABC Cells

Aiko Solar has released its newly developed type-n ABC cells where no grid line exits on the front side which can provide 2016 2015 2014 2012 2009

enhanced conversion efficiency low temperature coefficient and make it easy to get thinner cells. ABC cell technology is

the new generation type-n all-back contact technology solely developed and all major intellectual property rights in which are The Company received The Company The Company The Company Guangdong Aikoowned by the Company. the “Leading Enterprise got for the was approved as received the Solar EnergyAward of PV Industry “National High- the Guangdong qualification of Technology Co.Technology” at the tech Enterprise” Provincial PV “National High- Ltd was founded.

10th SNEC PV Power qualification again. Technology tech Enterprise”

Solutions Expo. Research Center. and established

a Municipal

Around the ABC products Aiko Solar builds its capabilities regarding solution innovations development of processes and

Enterprise

systems operation of digital platforms business model innovations and industry chain integration and focuses on high-end

Technology Center

and mid-end PV market to offer safe smart and low-carbon photovoltaic energy overall solutions to customers.in Foshan.

05 062022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report About Aiko Solar

Key Performance

Indicator Unit 2022 Indicator Unit 2022

Operation performance Occupational training expense In 10000 yuan 2300

Number of training sessions / 1567

Operating revenue In 10000 yuan 3507 495.71

Training duration hour 391101.12

Net profit attributable to shareholders of

the listed company In 10000 yuan 232820.13 Total participants / 10589

Basic earnings per share CNY/share 1. 34 Benefits and Care

Governance performance Number of employee care activities / 56

Number of directors Person 7 Number of employee associations / 23

Number of independent directors Person 3 Number of employee activities / 357

Number of training sessions on risk Employee discussions / 442

control audit and law / 33

Public Interest

R&D performance Number of volunteering activities / 15

R&D cost In 10000 yuan 137 783.62 Total volunteering duration hour 450

Number of R&D employees Person 2145 Total volunteers / 200

R&D projects for mass production / 41 Environment performance

Total patents authorized / 884

Reduction of water consumption

intensity (per unit product) % 33.28

Employee performance

Reduction of greenhouse gas emission

Employment intensity (per unit product)

%9.00

Total employees Person 9137 Reduction of comprehensive energy

consumption intensity (per unit product) % 31.82

Male to female / 7187/1950

Employment contract rate % 100

Social insurance coverage % 100

Health and Safety

Employee health check and health file

coverage % 100

Number of safety emergency drills 234

Development and Training

07 082022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Sustainable Development System

Qualifications and Honors

Sustainable Development System

China Patent Award - National High-tech Provincial Enterprise

Honorable Award Enterprise Institute Aiko Solar integrates its own development into the global sustainable development and gets engaged in the development

China National Zhejiang Department Zhejiang Department and manufacturing of solar cells. While striving to advance the global new energy industry it never stops the efforts into

Intellectual Property of Science and of Science and the improvement of its sustainable development system regular reviews and supervisions of ESG affairs development of

Administration Technology Technology the ESG management work prompt understanding of stakeholder requests and swift responses to stakeholders and the

gradual enhancement of its sustainable development management.Water Saving

Provincial High-tech Enterprise 2022 Green and Low

Enterprise R&D Center Carbon Factory in Jinhua

Tianjin Municipal Bureau of

Zhejiang Department Water Affairs Jinhua Municipal

of Science and Tianjin Municipal Bureau of Bureau of Economic

Technology and Information Sustainable Development PhilosophyEconomic and Information

Technology Technology

The 1st Place at 2021 Yiwu

Competition on Enterprise Top 100 Fastest Developing 5Th Place in the Top 100

Emergency Response Enterprises in Zhejiang Industrial Enterprises To be a global leader Bringing surging momentum

to Dangerous Chemicals from Emerging Strategic Zhejiang Enterprise in the PV industry to the zero-carbon society

(group competition) IndustriesFederation Zhejiang on M

Entrepreneurs Association Tianjin Federation si is

Yiwu Municipal Zhejiang Federation of of Industry and

Bureau of Emergency Industrial Economy Commerce

Management

We are dedicated to solar cell

manufacturing

Influential Outstanding Quality is put on the first place

Health Enterprise Photovoltaic Innovation The Most Influential PV Customers are at the heart of

Enterprise in the 2022 Cell Enterprise of Solarbe what we are doing

Beichen District Health 11th Polaris Cup Award

Promotion Committee uCustomer-centric es We adhere to high standards of

https://www.bjx.com.cn/ SOLARBE Pcontributor-oriented nt professional ethicseme

long-term hard work Manag We operate globally

self-criticism sustainable Innovation is our lifeline

innovation Suppliers are our partners

2021 Golden Leopard We uphold long-term hardworking

APVIA Award - Award - Enterprise with Provincial Postdoctoral We seek for long-term effective

Industrial Contribution Technological Innovations Program growth

APVIA http://www.molepv.com/ Post-doctorate Work Office We are on the track of sustainable

of Zhejiang development

0910

Vi

hilosophy

sio

n

l

Va

Cor

e2022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Sustainable Development System

Sustainable Governance System Stakeholder Engagement into Important Assessments

Under the supervision of the Board of Directors Aiko Solar has created ESG management system for which the Board Office

is ultimately responsible and the EHS Department takes care of the execution work with the supports from all functions. Communications with Stakeholders

The Company plans to form an up-bottom ESG governance system in 2023 and developing sustainable development

policies. This is a part of the Company's work to improve its ESG management through the creation of a multi-level ESG

management system to drive its sustainable development. Aiko Solar gives high importance to all stakeholders including governmental and regulatory authorities investors customers

employees suppliers and communities by creating various communication channels for timely understanding the

expectations and requests of stakeholders and by giving swift responses.Key stakeholders Expectations and requests Communication channels

Review and discuss important ESG matters and Pay taxes under laws Pay taxes on time

Board of annual ESG reports; Operate under laws Receive supervision

Directors Assess ESG risks and get hold of ESG Contribute to local economy Work reporting

opportunities Governmental bodies Technological innovation capabilities Improve the capabilities of innovation and R&D

and regulators Climate change responses Special industries lead local development

Anti-bribery and anti-corruption Provide stable job opportunities

Review the information

contained in ESG reports and Shareholder MeetingCreate value for shareholders

performance data to ensure Company announcements and regular

Board Office Safeguard the interests of shareholders reportingtheir accuracy;

Coordinate the work performed Shareholders and

Improve company governance Strategy meetings and roadshows

Investors Prevent and control operational risk Onsite receptions and hot-line for investorsby ESG execution team; Satisfactory information disclosure Http://sns.sseinfo.com/ interactions and

Report ESG work progress Report ESG work to the exchanges with the capital market

to the Board of Directors Board Office periodically

periodically

ESG Working Groups Collect ESG-related data and Employee representatives’ meetingprepare reports Safeguard the rights and interests of employees Discussions with front line employees

HR Department EHS Department Supplier Integrate ESG-related themes Provide them with a development platform Employee satisfaction surveyManagement Department Quality Management Improve their welfare Employee feedback

Department Legal Department Department of into department management Employees Focus on their occupational health

Factory Affairs and Production Bases Cultural activities and sports and care

Boost democratic communications activities

Professional skill training opportunities

Protect the rights and interests of customers Customer Satisfaction Survey

Guarantee the quality of products and services Customer claims and feedback (telephone

Customers Integrity and fulfillment emails and WeChat)

Value creation ability Technological discussions

Open bidding information

Fair competition Supplier performance assessment

Transparent purchase Long-term strategic cooperation

Suppliers Stable partnership Phone calls and emails

Technological discussions and factory audits

Volunteers

Build harmonious communities Donations

Work for public interest Protect community environment

Communities Local environmental protection Support public construction in communities

Poverty relief through industry development

and education

11 122022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Sustainable Development System

Analysis of Significant Themes Finalized Significant Themes

Aiko Solar continues improving its identification and management of significant themes by collecting and understanding Matrix of Significant Themes for 2022 Aiko Solar ESG Report

concerns and expectations from stakeholders for the Company through analysis of industry policies and trends industry

benchmarking and online questionnaires prioritizing themes on the basis of the assessments from environment economy

and people (human rights) by important stakeholders and identifying important themes that help guide the Company to put

Technological

targeted efforts into its sustainable development. Investor relationship management Product quality management innovations

Employee responsibilities Customer interests Work safety

Risk compliance

Determination of Significant Themes Clean energy opportunities

Waste management Anti-bribery and anti-corruption

Green products Climate change responses

Supplier chain management

IPR protection Water resource management

Stage Key work Biodiversity Sustainable development

ESG management Digital development

Local economy

Corporate governance

Management of other resources Energy management

Identify Online questionnaires prepared with reference to national polices on the basis of Community relationship Environment management

significant industrial benchmarking and the Company's development strategy were used to

themes collect the requirements of stakeholders.Public Interest

The Company performed a systematic quantitative analysis of these themes

Understand the to understand the importance of themes on the Company’s operations and its

Green office

importance of stakeholders and produced a matrix demonstrating the importance where themes

these themes of high importance are in the up right part themes of intermediate importance in Importance to the Company

the middle part and themes of low importance in the down left part.Environment Society Corporate Governance

Analyze the With reference to the Global Reporting Initiative (GRI) Sustainable Development Significant Themes for 2022 Aiko Solar ESG Report - Three Dimensions i.e. Environment Economy and People

impacts of Reporting Standards the Company analyzed the real and potential impacts both (Human Rights)

these themes negative and positive of corporate activities and businesses relating to the 27

themes on the environment economy and people (human rights). Environmental impact scores Economic impact scores People (including human rights)

impact scores

60

50

The Company invited key stakeholders to assess how significant these impacts

Assess the

significance of are in the forms of group meetings and assessment rating. The resulting ratings 40

the impacts demonstrate the significance of both positive and negative impacts at three

dimensions i.e. environment economy and people (human rights). 30

20

Given the importance of these themes to stakeholders and the impacts at above 10

Prioritize three dimensions caused by the Company's operations under these themes

and finalize and with reference to industry trends and policies the Company calculated the 0

themes significance of these themes in a quantitative manner and sorted them from

highest to lowest significance. Then a final list of significant themes was obtained

to help determine the key points disclosed in this Report.

1314

Technological

innovations Importance to stakeholders

Climate change

responses

Clean energy

opportunities

Digital development

Customer interests

Sustainable

development

IPR protection

Green products

Product quality

management

Corporate

governance

Water resource

management

Anti-bribery and

anti-corruption

ESG management

Biodiversity

Supplier chain

management

Work safety

Investor relationship

management

Waste management

Employee

responsibilities

Risk compliance

Environment

management

Energy management

Green office

Management of other

resources

Local economy

Community

relationship

Public Interest2022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Sustainable Development System

List of Significant Themes

Significant Themes for 2022 Aiko Solar ESG Report - Positive and Negative Impacts

Sequence Theme

1 Technological innovations

Technological innovations

Climate change responses 2 Climate change responses

Clean energy opportunities 3 Clean energy opportunities

Digital development 4 Digital development

Customer interests

5 Customer interests

Sustainable development

6 Sustainable development

IPR protection

Green products 7 IPR protection

Product quality management 8 Green products

Corporate governance 9 Product quality management

Water resource management

10 Corporate governance

Anti-bribery and anti-corruption

11 Water resource management

ESG management

12 Anti-bribery and anti-corruption

Biodiversity

Supplier chain management 13 ESG management

Work safety 14 Biodiversity

Investor relationship management 15 Supplier chain management

Waste management

16 Work safety

Employee responsibilities

17 Investor relationship management

Risk compliance

18 Waste management

Environment management

Energy management 19 Employee responsibilities

Green office 20 Risk compliance

Management of other resources 21 Environment management

Local economy

22 Energy management

Community relationship

23 Green office

Public Interest

24 Management of other resources

0102030404060

25 Local economy

Negative impact scores Positive impact scores 26 Community relationship

27 Public Interest

15 162022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Sustainable Development System

Contribute to UN Sustainable Development Goals

With the features of its industry in mind Aiko Solar does an active job in ESG practices around the UN Sustainable

Development Goals (SDGs) for its own sustainable development.Sustainable

Development Goal Description SDG Response

Sustainable

Development Goal Description SDG Response

· E mphasize on occupational health · D evelop and produce efficient solar

management and safety training cell products for the broader use of

Ensure healthy lives and promote well-

being for all at all ages. · Establish employee associations Make cities and human settlements

clean energy and the sustainable

and hold team building and cultural inclusive safe resilient and development of cities

and sport activities sustainable. · Contribute to pandemic prevention

and control by making more

donations

Ensure inclusive and equitable quality

education and promote lifelong learning · Emphasize on employee training

opportunities for all. · A ccountability in emissions and discharges management

Ensure sustainable consumption and

production patterns. · Management of efficient use of resources

Achieve gender equality and empower · Clean production management

all women and girls. · Care female employees

Take urgent action to combat climate · Get hold of clean energy

change and its impacts by regulating opportunities

· Reduce water consumption emissions and promoting developments

Ensure availability and sustainable in renewable energy. · Reduce greenhouse gas emission

management of water and sanitation for · Reuse the water used for production

all. and enhance water efficiency

Protect restore and promote

sustainable use of terrestrial · Increase green coverage in factories

ecosystems sustainably manage

· Provide high-quality solar cell forests combat desertification and halt · Protect land and water environment

products for higher efficiency of the in factories

Ensure access to affordable reliable and reverse land degradation and halt use of solar energy

sustainable and modern energy for all. biodiversity loss.· Provide comprehensive energy

services Promote peaceful and inclusive

societies for sustainable development · I mprove company governance

Promote sustained inclusive and provide access to justice for all and · Listen to employees via multiple

sustainable economic growth full and · E mploy under laws to expand job build effective accountable and channels

productive employment and decent opportunities inclusive institutions at all levels.work for all.· C reate channels for

· S trengthen technological communications with stakeholders

Build resilient infrastructure innovations

promote inclusive and sustainable · Attach importance to supply chain

industrialization and foster innovation. · Implement intelligent transformation management and hold technological Strengthen the means of

· Build green factories exchanges and training sessions implementation and revitalize the with suppliers

global partnership for sustainable

development. · Be open to cooperation within the

ecosystem to drive the industrial

Reduce income inequality within and chain development

among countries. · Prohibit discrimination in any form · B uild platforms for improved

external cooperations

17 182022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Get Hold of Clean Energy OpportunSituiesst aDinriavbelne bDye vGerleoepnm Iennto Svaytsitoenms

Get Hold of Clean Energy Organizational DevelopmentAnnual Topic

Opportunities Driven by Aiko Solar improves its organizational structure for R&D management having created a novel R&D system consisting of

Green Innovations Proust Technology Department dedicated to mass production technologies and Labs responsible for developing novel and frontier cell technologies across all production bases for synergistic and digital management.Attaching high importance to R&D and innovation Aiko Solar actively gets hold of the clean energy opportunities in the

context of China's carbon peak and carbon neutrality goals by sparing no effort to advance the green upgrading of PV cell

technologies launching efficient PV cell products and providing safe smart and photovoltaic energy overall solutions that

have low carbon emissions as its contribution to the use of clean energy. Product

Technology Technologies relating to PERC solar cells and type-n ABC cells

Department

Responses to UN SGDs

Technological routes about ABC HJT TOPCON HBC and calcium-titanium oxide-silicon

Lab

stacked cells

Make Strategic Planning

Policies and Procedures

Upholding the green concept and closely following the clean energy trend Aiko Solar has made a strategic plan based on

which it intends to build product supply and service capabilities along with system solutions that are globally competitive

develop an industry-leading lean production system that meets increasingly higher requirements in technologies quality and Aiko Solar has created policies and procedures including Procedures for Management of New Product Development

cost efficiency and advance the planning construction and operation of global manufacturing bases for solar modules. Process to standardize the management of R&D projects. It also refined the rules on R&D project management accounting

of R&D costs R&D staff performance review and incentives.Build an Industry-Chain Wide R&D and Production system Strategies and Processes

Starting with green technological innovations Aiko Solar has put into action an innovation-driven development strategy to From the perspective of efficiency and cost Aiko Solar has laid down a raft of guidelines for improving efficiency and

improve its R&D system across the full industry chain so that to extend the R&D mode that only covers cells to a full industry reducing cost innovated the strategies for product design and development. Optimization of team organization product

chain mode that covers silicon wafers solar cells modules and systems. management project management and team building has improved its operation efficiency.Aiko Solar R&D Strategies

Coordinated planning and management of R&D projects through the R&D platform;

Interconnection between data platform and R&D platform helps improve design

Enhance efficiency efficiency;

Alignment of objectives of R&D Processes Manufacturing Quality and Procurement

departments with the performance.Use of low-cost materials and suppliers;

Dedicate projects for cost reduction;

Reduce costs

Strategic alliance with suppliers helps create technological barriers/cost advantage

with technologies from suppliers.

1920

Strategy2022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Get Hold of Clean Energy OpportunSituiesst aDinriavbelne bDye vGerleoepnm Iennto Svaytsitoenms

In 2022 Aiko Solar completed the blueprint of its integrated product development (IPD) system and the framework of

relevant processes within the system with the objectives strategies/ideas and owners of each stage defined for smooth Product management

Strategic product Cross-functional

progress of the development work. planning team

Long-term

needs

Product realization

Middle-

term

needs Product

roadmap

Concept Plan Development Verification Launch Life cycle Time Objective Strategies/Ideas Owner(s)

Product package managementProject

Demand requirements registration

management process

Define the overall idea and objective for IPD system development; Urgent Technology enablement

demand Project

Determine the process framework of each functional module; change request Enabling support Functional support

Define the Set up an IPD development team and relevant function teams with the duties

Q1 process of all departments defined;

R&D Management

framework and Department/Other Work out the implementation plan and produce the Company-level IT

set up a team Departmentsplatform planning;

Aiko Solar Processes in the IPD System

Identify the main process for IPD system (to get through all processes that

spans from ends to ends) and the IT implementation plan;

Technology Path

Understand the requirements for organizational development and platform-

based IT development implement and carry on the development of the main

Discuss and IPD processes (platform);

draft the basic IPD Development With its on-going deep efforts into the field of solar cell technologies Aiko Solar takes a leadership in product and technology

Q2 processes of Identify specific functions to be provided by all function modules and

all business documentation/processes to be created;

Committee/All reforms which helps reduce photovoltaic electricity costs. While maintaining its leading position in PERC cell technologies

Departments in terms of photoelectric conversion efficiency passivation film density and uniformity anti-degradation performance and

modules Sort out make additions and revisions provide department training

regarding existing documents/processes to synchronize the construction reliability it opens up future growth space for ABC cells and continues to provide high-quality reliable and efficient clean

and improvement of It-based processes; energy products for downstream enterprises. In 2022 Aiko Solar put great efforts into the development of solar cells modules

and systems around cell technologies for the type N technology path which has removed the “excessive silver consumption”

that hindered the large-scale development of the PV industry and provided technological supports for the low-cost and large-

scale development of type-n technology path.Work out the synergistic indicators for all departments; define specific KPIs

that are broken down to each supporting department;

Advance the implementation and optimization of the main process and

Q3 Define

IPD Development

improve all function;

department KPIs Committee/All Aiko Solar’s Technology Path

Review executed documents/processes through measurement and analysis Departments

for improvements train staff again and track the work execution;

Company-level IPD system starts its trial use; The Company The Company The Company The Company The Company

launched tubular released tubular made the global made the global released ABC

PERC technology bifacial SE-PERC debut of the 166mm debut of the 210mm modules and

Finalize new documents/processes and put them under control review them which made it cells becoming PERC cells; and PERC cells photovoltaic

after one-month execution; at the same time start the development of IT-

Improve the based processes and the improvement of the main process as well as the the world’s first the first enterprise became the first energy overall

development and continuous measurement analysis and improvement of function modules to IPD Development manufacturer that whose mass one to develop the solution services

Q4 implementation deliver well-established IT-based processes; Committee/All

of basic applies the tubular production solar bifacial metrology

processes Processes are recognized by and applied to cortical business departments

Departments

PERC technology to cells exceeded and classification

and the IT development is furthered;

Continuous improvement of IPD. the mass production the conversion technology in the

of these solar cells efficiency of 22% in industry

the industry

Aiko Solar IPD System

20172018201920202022

21 222022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Get Hold of Clean Energy OpportunSituiesst aDinriavbelne bDye vGerleoepnm Iennto Svaytsitoenms

Case New ABC solar products launched Aiko Solar attaches high importance to IPR protection and observes the IPR protection and ethics standards by reinforcing

its own management of IPR.As of the end of the 2022

In 2022 we released ABC modules and ‘source-grid-load-storage’photovoltaic energy overall solutions. As of

February 2023 the energy conversion efficiency of mass production type-n ABC modules was up to 23.6%. Under

the same scenario efficient ABC modules can produce more power than the mainstream type-P PERC modules

by over 15% per unit area over the full life cycle.Aiko Solar made patent applications granted inventions

High power generation

Full back contact structure 1563 884 148

Full absorption of visible light on the front

Breakthrough the bottleneck of

silver use in the photovoltaic industry

No silver technology IPR Achievements of Aiko Solar

Higher reliability

Less welding stress Patent type Applications in 2022 Total applications as of the end of 2022

Longer operating time system Invention 160 721

High Open-circuit voltage

Utility model 129 623

Energy conversion efficiency of mass 23.6% Industrial design 14 219production type-n ABC modules was up to Total 303 1563

Introduction of Type-n ABC Products

In addition Aiko Solar puts active efforts into IPR training which is expected to enhance the standardization of its IPR

management on a systematic manner and to increase employee awareness on the importance of patent application and

protection. In 2022 the Company had 200 persons participate in IPR training programs.IPR Management

Aiko Solar has set up a sound IPR protection system supported by policies and

procedures like Patent Management Policy Patent Project Management Policy

Patent Application Procedures and Patent Reward Management Policy with on-

going efforts into developing its IPR system in order to fully protect its advanced

technologies in a timely manner and create a patent barrier. In 2022 Guangdong

Aiko and Zhejiang Aiko had their IPR management systems certified.Aiko Solar IPR Management System Certification

Certification Certificate

name Standards

Company

name registration

Expiry

number date

Guangdong

IPR Aiko 18121IP0637R1M 2024.12.18

Management GB/T29490-

System 2013

Certification Zhejiang Aiko ZJLH20IP0281R0L 2023.11.23 Certificate of Zhejiang Aiko IPR

Management System

23 242022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Get Hold of Clean Energy OpportunSituiesst aDinriavbelne bDye vGerleoepnm Iennto Svaytsitoenms

Increase Presence through Manufacturing Bases of Efficient Solar Cells Innovate “Source-Grid-Load-Storage” photovoltaic energy overall solution

Supported by its Foshan Base Zhejiang Base Tianjin Base and Zhuhai Base Aiko Solar expands its production lines of new

solar cells including the 6.5GW mass production project for ABC cells in Zhuhai to deliver more green products at a faster As an active response to the carbon peak

pace. and carbon neutrality goals Aiko Solar has

founded Shenzhen Solar-Grids Digital Power

Techno log ies Co. L td . wh ich leverages

Foshan Base Zhejiang Base technological innovations to provide photovoltaic

energy overall solutions and services that

As the first silicon solar cell manufacture at scale in Supported by the first-class production equipment cover project development solutions financial

Guangdong Foshan Base is specialized in the research imported from foreign countries Zhejiang Base tries to services EPC and operation and maintenance

manufacturing sale and after-sale services for silicon create an intelligent solar cell production line based on the and build a full-life cycle digital management

solar cells. Equipped with a powerful R&D team the Base Industry 4.0 intended for increased production capacity mode spanning from design transaction order

stands in the frontier area when it comes to advanced for efficient PERC cells. The completion of the project is fulfillment and operation and maintenance to

technologies and product innovations. expected to deliver a R&D and production base occupying help with the development of zero-carbon cities. Diagram of A Zero-Carbon City

an area of 1000 MU and having 10000 employees for

advanced solar cells whose annual capacity is 50GW and

annual output is CNY 40 billion yuan.Overall Solutions for Household Scenarios

In 2022 Aiko Solar released photovoltaic energy overall solutions around the type-N ABC solar modules. The use of

digital technologies such as 3D efficient modeling and AI algorithms helps with the management of solar modules storage

batteries and charging stations. This demonstrates the green development of Solar-Grids and means more green options for

customers.Foshan Base of Aiko Solar

Module Inverters

The latest type-n ABC module technology More power generation: multiple

Efficient power generation: 23.6% for mass production MPPT channels for precision control

Zhuhai Base Zhejiang Base of Aiko Solar modules for higher electricity generation with lowered Easy operation and maintenance:

attenuation fault rate lower than 0.5% per year

Zero-c Cloud Energy Lowered “hot-spot” effect No easily damaged parts: no fuses

Tianjin Base Management Platform Appearance: pure black without grid line on the front side or fans

Zhuhai Base is designed to produce efficient type-n Energy flow and carbon flow

solar cells with an expected annual capacity of 26GW. It management

is expected to be completed and put into production in Established in 2018 in Beichen District Tianjin Base is Visualized management Bracket system

Cloud - edge - end

2025. With a full capacity running the Base is supposed specialized in the development of solar cell technologies Pressing block-free designarchitecture

Elastic clamp design makes it takes less

to output CNY 31.2 billion yuan each year. and manufacturing and sale of solar cells. AI-based energy dispatching than 30 seconds to install one module

algorithm

Stable system for flexible

access

Energy storage system Charging station

Modular design and configuration V2G charging and discharging: Electric vehicles as energy storage

on demand space can contribute to the power grid peak shaving valley filling

High efficiency and long life Orderly charging: Reduce the pressure on the power grid and realize

Smart monitoring results available the orderly charging of electric vehicles

on APP Safe and adjustable: Cloud-based operation and maintenance

charging current can be adjusted over the entire range

Real-time dispatching: Low communication delay and real-time

demand response

Overall Solutions for Household Scenarios

Rendering of Zhuhai Base of Aiko Solar Figure Tianjin Base of Aiko Solar

25 262022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Get Hold of Clean Energy OpportunSituiesst aDinriavbelne bDye vGerleoepnm Iennto SvaytsitoenmsCase Building materials upgraded to generate” green power” a new integrated mode for PV buildings Case Green concept empowered the construction of solar panel car parking sheds integrated with energy storage and car charging

In 2022 Aiko Solar constructed a PV generation project on rooftops of single-family homes in Jurong Jiangsu. In 2022 Aiko Solar completed the construction of its PV car parking shed system. Type-N ABC solar modules

With an installed capacity of 23.22KW and expected annual power generation of 24400 kWh (calculated with 360 used for the car parking shed can provide a capacity of 290kwp and generate 277300 kWh electricity per year for

working days per year on a rooftop of 150 square meters) the project generates electricity used for these homes about 25 years thereby increasing the utilization of land and providing clean energy at the same time.and can reduce carbon mission of about 24.30 tons carbon dioxide equivalent per year (assuming that one kilowatt

electricity produced by PV panels is equal to reduction of 0.997 kgs carbon dioxide equivalent).PV Generation Project on Rooftops of Single-Family Homes PV Car Parking Shed Charging Station

Overall Solutions for Industrial and Business Scenarios

“Digital and Smart” Energy Management Platform

In 2022 Aiko Solar continued expanding the scenarios to which photovoltaic energy overall solutions are applicable by

developing new approaches including car parking sheds with solar panels cement rooftop frames made from solar panels By embedding energy technologies and digital technologies Aiko Solar has released the Zero-C Cloud platform based on

and rooftops made of colored steel tiles and solar panels to provide green technological supports for industrial and business the cloud-native architecture and thing model for energy management to create cloud-edge-end photovoltaic energy overall

companies. solutions.Module Inverters

The latest type-n ABC module technology More power generation: multiple MPPT

Efficient power generation: 23.6% for mass channels for precision control

production modules for higher electricity generation Easy operation and maintenance: fault rate

with lowered attenuation lower than 0.5% per year Application layer Service layer Support layer

Lowered “hot-spot” effect No easily damaged parts: no maintenance

Zero-c Cloud Energy

Management Platform Appearance: pure black without grid line on the

required,no fuses,entire machinefront side replacement

Energy flow and carbon flow This layer mainly consists of It consists of service It connects to SAP system

management Bracket system applications including Web

Visualized management software for various OA system HR system

Pressing block-free design

Cloud - edge - end pages on PCs WeChat business systems i.e. uniform identity system

architecture Elastic clamp design makes it takes less

than 30 seconds to install one module Micro-programs Android electronic signature and other office systems in

AI-based energy dispatching

algorithm cement rooftop colored steel parking and iOS clients large- system distributed PV an organization.Stable system for flexible PV support tiles rooftop PV shed

bracket support bracket screen display pages and cloud operation and access business systems such as maintenance platform for

Energy storage system Charging station PV Cloud and operation and solar generation electricity

Active safety warning: internal short circuit analysis Safe and fast charging: The power of a single liquid-cooled gun

abnormal gas detection; AI security alert algorithm is up to 360kW and active safety warning of the energy storage maintenance products for storage and charging

Passive safety protection: package-level thermal Extremely fast heating: low temperature environment 6~8C/min solar generation electricity SASS software platform

spread barrier pulse heating rate

storage and charging and industrial design

Cell-level management PACK-level optimization Flexible expansion: Small capacity energy storage high-power

cluster-level control charging energy storage easy to solve power distribution systems. software.Intelligent operation and maintenance problems

Perfect functions: support high-power overcharging pulse

heating V2G V2B battery health detection etc

Overall Solutions for Industrial and Business Scenarios

27 282022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Get Hold of Clean Energy OpportunSituiesst aDinriavbelne bDye vGerleoepnm Iennto Svaytsitoenms

Management of energy flows Build Cooperation and Exchange Platforms for Innovations of Green

Technologies

Create Advanced R&D Platforms

Continuing improving its capabilities of independent research and development Aiko Solar actively builds R&D platforms

and exchange platforms and adheres to innovation-driven development. As of the end of 2022 Zhejiang Aiko Solar built a

Provincial R&D Center at High-tech Enterprise in Zhejiang the Aiko Solar Cell Enterprise Institute in Zhejiang a Provincial

Operation of virtual Synergistic control Vehicle to Grid Demand response Enterprise Technology Center and Key Enterprise Research Institute in Zhejiang and Post-doctoral Program Station in

power plant of micro-grid (V2G) Zhejiang; and Guangdong Aiko Solar created an Enterprise Technology Center in Guangdong a Key Lab for Silicon Solar

community Cell Technologies and Applications in Guangdong and a Research Center for PV Engineering Technologies in Guangdong.What is more Aiko Solar puts additional efforts into the construction of its test centers and the all-around improvement of

its labs with respect to the governance system environment staff and equipment. In November 2021 Zhejiang Aiko Test

Management of carbon flows Center was qualified as TMP onlooking test lab by TüV Rheinland. In February 2023 Aiko Solar and TüV Rheinland signed

a strategic agreement for cooperation in development of standards for highly capacitive ABC modules.Case Aikosolar Testing Center qualified as TMP onlooking test lab by TüV Rheinland

Aikosolar Testing Center includes a solar cell test room a trial production line for solar modules and a reliability

Carbon emission Carbon emission Carbon emission Carbon trading lab where a complete range of PV module production and testing equipment is available. It provides a great

records accounting optimization platform environment for the trial production and testing of all kinds of solar modules. In November 2021 the Test Center

received the qualification of TMP onlooking test lab granted by the third-party body TüV Rheinland.爱旭数字能源:融合能源技术和数字技术,加速清洁能源发展和传统能源高效利用,使高效、智慧、安全的能源惠及千行百业、千家万户Industry Governments Residents

Business/ Parks

Buildings Zero-

Carbon Cloud

Virtual Vehicle to Demand Synergistic control of Algorithm-based model + Carbon emission Carbon emission Carbon emission Carbon

power plant Grid (V2G) response micro-grid community optimized control records accounting optimization trading platform

Management of energy flows Management of carbon flows

Development

+ channel Solar light Storge Charging Others Investing partners

EPC + Safer Easy to operate

operation and More efficient Easy to install and maintain Financing Smarter

maintenance partners

Cells +Modules Cloud-edge-end architecture + AI-based energy dispatching algorithm

Energy technologies Digital technologies

Test Center

29 302022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Get Hold of Clean Energy OpportunSituiesst aDinriavbelne bDye vGerleoepnm Iennto Svaytsitoenms

IUR Cooperation Case Aiko Solar signed cooperation agreement with Netherlands Organization for Applied Scientific Research

Aiko Solar is dedicated to facilitating the high-quality and sustainable development of the solar cell industry for which it

exerts great efforts into the research and development of solar cell technologies. In addition to turning itself into a stronger

business the Company advances the communications and cooperations with universities in and beyond China in order

to drive IUR (Industry-University-Research) integration which can give full play to universities and enterprises a way to

accelerate the commercialization of frontier technologies.The Aiko Solar European Research Institute is committed to the development of theories and technologies about solar Aiko Solar has signed a cooperation

cells. The deep partnership with PV research institutions in the Europe helps the Research Institute effectively combine agreement with Netherlands Organization

the innovative technologies from Europe with the mass production technologies from China thereby converting research for Applied Scientific Research (TNO) the

achievements into mass production products and further driving the technological reform in the industry. largest organization applied sciences in

Netherlands to build a joint R&D lab for

Aiko Solar has invested into the construction of Global Joint PV Innovation Center which connects leading enterprises in deep collaborations in novel solar cells.the global industry chain with well-known universities and research institutes across the globe to facilitate their theoretic

innovations and engineering technology cooperations in the PV industry. As of the end of 2022 the Joint PV Innovation

Center reached cooperations with over ten leading enterprises in the PV industry chain and managed to set up joint TNO

innovation spaces for manufacturing processes equipment materials and tests.In 2022 the Technology Advisory Committee was formed in Aiko Solar for further facilitating the cooperation with universities

and research institutes. It invited expert teams consisting of professors from universities and research institutes well-known

in the industry to conduct periodical technological exchanges share the latest industry updates on technologies and provide

special training courses on critical themes. As of the end of 2022 Aiko Solar had established IUR partnerships with many

universities and research institutes.

31 32Improve Company

Governance with

Compliance

Standing on a governance structure where duties and

authorities are clearly defined for checks and balances Aiko

Solar continues optimizing its governance framework and

advancing its compliance management to safeguard the

interests of all stakeholders and ensure the compliance of its

operation.Responses to UN SDGs2022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Improve Company Governance with Compliance

Shareholder Meeting Board

Maintain Investor Relations through Effective of Directors and Supervisory

Governance Committee

Shareholder Meeting

In strict accordance with applicable laws and regulations such as the Company Law of the People's Republic of China the

Securities Law of the People's Republic of China Code of Corporate Governance for Listed Companies and Listing Rules of

Shanghai Stock Exchange Aiko Solar keeps optimizing its governance structure to ensure the stable and health development. The Shareholders Meeting is the highest body of power which makes

decisions about important operation matters.Organizational Structure

In 2022

Aiko Solar held

The organizational structure of Aiko Solar consists of the Shareholder Meeting the Board of Directors the Supervisory

Committee and the Management. Under the Board of Directors are four committees: Strategy Committee Audit Committee 4 shareholder meetings 54 resolutions were approved

Nomination Committee and Compensation and Review Committee.Aiko Solar Organizational Structure

Board of Directors

As the decision-making body of the Company the Board of Directors is responsible for the Shareholders Meeting.Shareholder Meeting

As of the end of 2022

Supervisory Committee Aiko Solar had

These directors have expertise in finance accounting

audit law risk management and relevant fields. In 2022

the Company held 16 board meetings where all directors

were present and 100 resolutions were made regarding

7 directors 3 independent directors amendments of the Articles of Association as well as other policies and related-party transactions.

Board of Directors

General Information of Directors

Education

Strategy Committee Audit Committee Name Title Age Gender background

Chen Gang Chair 55 Male Bachelor

Liang Qijie Director 50 Male Three-year college

Shen Yu Director 44 Male Master

Nomination Committee Compensation and Review Lu Haojie Director 49 Male Master

Committee Xu Liping Independent director 49 Female Doctor

Shen Honglie Independent director 65 Male Doctor

Zhong Ruiqing Independent director 52 Male Doctor

35 362022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Improve Company Governance with Compliance

Supervisory Committee Investor Relations

As the supervision body the Supervisory Committee oversees and examines the Aiko Solar values the investor relationship management: it has formulated Investor Relationship Management Policy for

Company's financial activities and the official conducts. As of the end of 2022 procedure-based management of investor relations; shows its operation to investors in a timely manner by following the

Accuracy Completeness and Fairness principle to strengthen effective communications with investors and fully protect their

rights to information through proper information disclosures; keeps expanding open and convenient communication channels to

maintain sound information exchange and protect the rights of shareholders in particular small and middle ones by http://sns.sseinfo.com the investor hotline shareholder meetings and other means.Aiko Solar had

3 supervisors 1 employee representative Regulate Information Disclosure

In strict accordance with provisions of the Securities Law of the People's Republic of China Administrative Measures on

Information Disclosure of Listed Companies Listing Rules of Shanghai Stock Exchange and its Articles of Association Aiko

General Information of Supervisors Solar has developed the Information Disclosure Management Policy to ensure the authenticity accuracy completeness and

timeliness of information it discloses. It has also developed the Insider Registration Management Policy and an Insider Register

Name Title Age Gender Education to regulate the inside information management.background

Huang Jinguang Chair 69 Male Bachelor

Smoothen Communication Channels

Fei Ting Supervisor 31 Female Master

Ren Mingqi Employee supervisor 35 Female Bachelor

Aiko takes every effort to create and keep good relations with investors through online and off-line two-way communications with

investors understanding of and timely responses to their key concerns and effective guarantee of their rights and interests.In 2022 the Company held 15 Supervisory Committee meetings where all supervisors were present and 58 resolutions were

made regarding related-party transactions and private placements.Communication form Communication channels

Senior Managers Written Regular reports and interim announcements

Telephone Telephone survey

They are responsible for the production operation and management of the Company and report to the Board of Directors. As of Meeting Strategy meeting exchanges with the capital market, roadshow and reverse roadshowthe end of 2022 the Company had 5 senior managers who are experienced in finance audit risk management accounting and

other relevant fields. Face to face Onsite reception

From 2022 on the Company launched the “gain sharing” incentive approach under which salaries bonuses and performance Online http://sns.sseinfo.com/

reviews of senior managers are governed by Compensation Incentive Policy and Performance Management Rules and their

bonuses are linked to Company performance department performance and individual performance.Safeguard the Interests of Shareholders

In 2022

Aiko Solar puts great emphasis on investor return with continuous measures that ensure the stability continuity and

the General Manager a salary of a bonus of other senior managers reasonableness of dividend distribution policies. As a part of this work it has released the Three-Year (2021-2023) Plan on

received a total CNY CNY received CNY Shareholder Return of Shanghai Aiko Solar Energy Co. Ltd.compensation of CNY

1.96 million 1.56 million 0.4 million 6.5722 million in total

(including salaries and bonuses).

37 382022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Improve Company Governance with Compliance

Improve Risk Management Adhere to Business Ethics

Aiko Solar puts processes into the center of risk management and coordinates the advancement of its risk management system Aiko Solar abides by the code of ethics in business with firm efforts into anti-bribery and anti-corruption to create and maintain

that ranges from internal controls internal audit and risk management and makes continuous efforts into work mechanisms its good image.and management policies to effectively help improve the Company’s risk management.The Company continues developing a clean workplace where no bribery or corruption is tolerated having laid down Anti-Fraud

Code Employee Discipline Management Procedures Complaints and Speak Up Management Procedures Accountability

Management Procedures and other policies and procedures and set up a complete structure to eradicate internal bribery

Risk Management corruption and frauds.Management

Aiko Solar actively propels the risk management by identifying analyzing and assessing risks in accordance with the Discussion

on Methodology for Legal Risk Assessment in Aiko Solar. In 2022 Aiko Solar put identified risks into its risk chart for uniform Create improve and implement internal controls that prevent and control frauds and perform assessments on a regular

management. basis or when necessary Advocate the integrity culture and create a clean workplace where no frauds and briberies are

tolerated.Systematically and accurately iden- Compare the analysis results against the Audit Department

Risk tify legal risks in critical operation Risk Company's code of legal risk manage-

identification activities and business processes on assessment ment to define risk levels and then make As the Company's body for fraud supervision it oversees the communication and implementation of Anti-Fraud Code as well

a comprehensive basis appropriate countermeasures as the behaviors of all people leaders and employees receives the reports and complaints concerning frauds investigates

suspicious activities and report suspected crimes to the public security or procuratorial authorities; give recommendations

and comments to HR Department and other relevant departments when it comes to promotions and awards.Perform qualitative and quantitative Add legal advances and countermeasures

Risk Counter-

analyses on the probability and against specific risks in relevant working All people leadersanalysis measures

impact of each identified legal risk papers with the inputs from risk identifi-

cation analysis and assessment. They are supposed to assist the Audit Department in anti-fraud work and cause their direct reports to comply with relevant

anti-fraud rules and under laws.Internal Controls All employees

They are expected to abide by national laws regulations policies and the Company's rules and report to the Audit

Aiko Solar has internal controls in place with the Internal Control Handbook of Shanghai Aiko Solar Energy Co. Ltd. being the Department as soon as possible if they find or get aware of any violation.basis for development execution assessment and inspection of its internal controls and ensures the orderly progress of all

kinds of work for an increased level of operation and management. All employees are required to sign Employee Convention on Anti-bribery and Anti-corruption and suppliers to sign Anti-Bribery

and Anti-Corruption Agreement as a way to eradicate internal and external briberies corruptions and frauds.Internal Audit Anti-bribery Anti-corruption and Anti-Fraud Structure in Aiko Solar

With a two-tier audit management system consisting of the Audit Committee and the Audit Department in place Aiko Solar has Smoothen speak up channels Protect reporters from being retaliated

established a sound project management and internal review system and has developed the Internal Audit Policy and Audit

Management Procedures for internal audit management that covers internal audit internal control audit operation audit capital Establish multiple channels including face-to-face Encourage employees to submit proposals and

expenditure audit IT system audit and anti-bribery and anti-corruption audit by following the principles of risk control and cost email address WeChat account audit supervision complaints with their real names and keep their

efficiency. mail box complaint and speaking up hotline. identifies confidential and process each proposal

In 2022 with continued efforts into supervision of key areas Aiko Solar performed 4 types of audits that spanned from raised and complaint and provide feedback for each report;

funds work order management related party transactions and examinations. For related-party transactions the Company put a persons who retaliates against reporters will be

lot of resources into regulating the review discussion decision-making disclosure and pricing processes and had related-party subject to severe punishments under Complaints and

registered. Speaking Up Management Procedures.

39 402022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Improve Company Governance with Compliance

What is more Aiko Solar provided relevant training sessions circulated articles held examinations and performed a

questionnaire-based survey to raise employee awareness on anti-corruption. In 2022 it held 5 anti-corruption circulations for

sensitive roles and 78 anti-corruption training sessions for new employees. A total of 5278 employees participated in training

sessions of 58 hours; 2 anti-corruption articles were publicized and circulated to 3576 persons. Deepen Digital Transformation

Given its macro-analysis and industrial analysis as well as its global business pattern and the fact that its operations span many

In 2022 products and factories Aiko Solar has made “digital and smart transformation” an important initiative during the Company's “14thFive Year Plan” in order to have its businesses empowered by digital and intelligent technologies.it held

5 anti-corruption 78 anti-corruption training 5278 employees participated Digital and Smart Projects

circulations for sensitive roles sessions for new employees in training sessions

By practicing its digital and smart strategy Aiko Solar has continued advancing the development of a digital platform digital

workshops and data centers with an aim of lowering the communication cost and production cost within the Company.training sessions of circulated to

2 anti-corruption articles 58 Digital project Description Benefits hours personswere publicized 3576

Efficiently support business changes advance the

Digital platform Develop a one-stop digital office platform It-oriented development of business processes connect applications on and off the cloud and

provide a one-stop integrated cloud platform

Case Yiwu Bureau of Public Security invited to Aiko Solar for legal awareness training Digital workshop Construct an IT platform where data are the Deliver intelligent and automatic capabilities for foundation of decision-making production control and management analysisModular design and construction of three Strict construction standards and the “three dataIn November 2022 the economic crime investigation team from Yiwu Bureau of Publicity Security was invited to Data centers data centers on two sites in accordance withcenters on two sites” planning helps match with the

Company's data demand necessary for its long-

Aiko Solar to guide the Company for anti-corruption management which helped raised employee awareness on Class B data center standards term development

anti-corruption and compliance.Presentation about the prevention of abuse of authority crimes in Aiko Solar

41 422022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Improve Company Governance with Compliance

Digital and Smart Empowerment Aiko Solar will leverage big data and decision-making support platform coupled with accumulated customer and business data to deliver intelligent marketing analysis forecast and decision-making. Furthermore Aiko Solar will spare no effort to implement

the integrated business plan (IBP) which will make the integrated supply chain a profit center and boost the smooth connection

On the basis of its achievements on digital and smart development Aiko Solar has gradually introduced data intelligence and IT coverage and digital coverage from end to end. This will help lower the supply risk ensure supply chain continuity and

vision intelligence to further boost its It-oriented business processes. In 2022 the management of R&D for mass production in reinforce the safety and reliability of the supply chain.Aiko Solar was fully digitalized.Integrated Business Planning

PM System Project Project

Registration Design Small Test Pilot Test Batch Test TECN ECN

Project

Project Stage Review Supply Chain Synergy Advanced Planning and Scheduling Stock Optimization United Demand

Management Synergy (Balanced Sales and Capacity) and Plan Management

Plans Results

Project Initiation Design Review Small Test Drawing Mass Production Project Review

Process Process Review Process Online Process Process Enterprise Resource Management

OA Approval

Process Plans Results Needs

Mass Production R&D

Experimental Material Application Process for Application for Commissioned Project Sign-Off after New Product/

Purchase Application Process Acquisition of Materials Experiments at The Testing Center Engineering Change Meeting Supplier

Relationship Warehousing Manufacturing Transportation

Equipment Customer

Management Management Execution System Management

Management Relationship

System Management

Automatically Trigger OA Process Plans Needs

Manually Submit OA Process

Statistical Process Quality Equipment Energy

Control Management Automation

Real-time Data Robot Control

Management System Management Architecture of PMS Application for R&D and Mass Production Projects in Aiko Solar Management System

Illustration of Aiko Solar Integrated Business Plan (IBP)

43 44Protect Ecology and

Environment with

Green Escort

Placing the environment management concept into product

full life cycle Aiko Solar strives to build a green enterprise that

provides green power for sustainable development through

on-going efforts into energy saving and emission reduction

ecological protection and clean work.Responses to UN SGDs2022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Protect Ecology and Environment with Green Escort

Environment Supervision

Optimize Environment Management

Aiko Solar arranges its production in compliance with the requirements in environmental protection laws and regulations

and environmental impact assessment approvals. Activities relating to environmental protection and resource saving in new

renovated or expanded construction projects are conducted in accordance with the Environmental Impact Assessment Report

Policies where the Company has played a role. Aiko Solar pays waste release charges on time obtains waste release permits and

completes waste release registration as required by local regulators.Aiko Solar has laid down internal documents including Environmental Protection Management Policy and Operational Control

Procedures which help embed environmental protection into the ordinary course of production and operation and clearly define Environment Monitoring

environmental objectives environmental protection measures organizational structure duties and authorities risk control and

supervision and testing for the purpose of a full-process management.With its Monitoring and Measurement Control Procedures

Management Structure In 2022 Aiko Solar performs online monitoring internal warnings

no real-time views and data export on critical pollutants on the waste from waste release outlets of Aiko Solar basis of the MES system and uploads the real-time data to

In Aiko Solar a horizontal management system that covers the General Manager EHS Department Department of Factory failed to meet relevant criteria local environment authorities. In 2022 no waste from waste

Affairs Administration Department Supply Chain Management Department and other functions and a vertical accountability release outlets of Aiko Solar failed to meet relevant criteria.system and procedure that ranges across the Company departments and production teams have been established to ensure

the smooth progress of environment management in the Company.Management level Function

Responsible for providing resources needed for operation controls to ensure effective operation

General controls within the environment management system;

Manager Lead the Company's operational controls including the management of energy efficiency carbon

emission reduction and environmental protection.EHS Responsible for overseeing everyday environmental protection including waste gas wastewater and

Department noise treatment) and conservation of resources and energies and report to the Management about operational controls and the outcomes of relevant actions.Responsible for everyday management and monitoring of waste gas wastewater sludge absorbents

Department and noise;

of Factory

Affairs Responsible for processing exceptional alarms sent from online environmental monitoring platform;

Be responsible for the comprehensive management of the Company’s use of water electricity and gas.Administration Be responsible for centralized collection and sorting of domestic solid wastes which are then entrusted

Department to professional recycling operations.Plan and

Material Control Be responsible for collection and sorting of production waste and hazardous waste wastes which are

Department then entrusted to professional recycling operations.Supplier Chain

Management Be responsible for engaging and contacting waste recycling suppliers to ensure these suppliers recycle

Department and treat solid waste periodically or when the Company needs.All functional Take part in the operational controls and energy and resource saving activities initiated in the Company

departments and their departments.

47 482022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Protect Ecology and Environment with Green Escort

Risk Control

Identification of Environmental Risks and Hazards Environmental Emergency Management

Aiko Solar places a high premium on the prevention and control of environmental risks and hazards by identifying such risks

and hazards on a regular basis (annual and quarterly) and from time to time to find problems at their early stage and protect The Environmental Emergency Response Plan worked out by Aiko Solar regulates the Company's environmental emergency

the environmental safety. In 2022 Aiko Solar held a dedicated environmental campaign to remove all possible waste leaks to management. The Company's all critical waste release units have laid down their own comprehensive and special response

eradicate the possibility of environmental risks. plans for environmental emergencies such as Special Response Plan for Significant Sources of Hazard from Hazardous

Chemicals Special Response Plan for Leaks of Hazardous Chemicals and Special Response Plan for Environmental Facility

Incidents and had these plans registered with local ecologic and environmental authorities.What is more to improve its organizational structure for emergency management Aiko Solar set up an Emergency Command

For projects that renovate expand or build new buildings or facilities where the

Source Center consisting of 10 emergency teams which arrange and coordinate field emergency groups for evacuation rescue medical

control construction of chemical facilities is required reinforced efforts must be placed into service flexible backup and communication.design and equipment selection and the risk assessment on material selection.Aiko Solar Organizational Structure for Emergency Management

Process Chief Emergency Commander

control Equip pipelines that transport acidic or alkaline substance with ant-splash bags

Commander on Site

Timely removal of identified leaks. In 2022 a special project was performed to relieve the

Processing leaks of pumps and pipelines in underground pipeline network of Factory Five caused by

and disposal the construction performed by the contractor

Evacuation Team Rescue Team Medical Team Backup Team Communication

Team

Protect human Protect the Protect Business continuity

Standardize all types of inspections and equipment maintenance; Priority Principle safety and health environment properties of the and Company Company reputation

Inspections Perform one patrol inspection per two hours one physical safety inspection per day and One Two Three Four

one equipment check per month

Management of Significant Sources of Risk

Aiko Solar has laid down work safety policies and operating procedures with respect to significant sources of risk worked out a

hazard management scheme consisting of main owners technological owners and site owners. Significant sources of risk are

assessed on a regular basis and these sources are registered.

49 502022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Protect Ecology and Environment with Green Escort

In 2022 Aiko Solar held Hydrofluoric Sulfuric Acid

Acid Leak Tank Leak Cope with Climate Change

Emergency

Emergency Drill Drill

15 environmental emergency drills Nitric Acid Leak

Emergency Aiko Solar has been playing an important role in advancing the global development of the new energy industry by responding to

Liquid Aiko Solar

Environmental Drill UN SDGs dealing with global climate change and contributing to the dual carbon goals. With clearly defined emission reduction Nitrogen Leak

Emergency Emergency Silane Leak objectives in mind the Company puts every possible effort including renovating manufacturing processes saving energy using

covered Drill Drills 2022 Emergency clean energy and calculating product carbon footprint to reduce its carbon emission as much as possible and to keep it on the

Drill

low-carbon track.

262 Abnormal participants to enhance the Hydrochloric Etching Acid Leak System Leak Wastewater

Emergency Emergency Release

Company’s capability of emergency response Drill Drill Emergency

Strategic Planning

Drill

As an active response to the National Climate Change Adaptation Strategy Aiko Solar has identified its carbon peak and carbon

neutrality goals given its advantages in the clean energy industry and tries to explore feasible paths for the successful low-

Case Hydrofluoric acid leak emergency drill carbon transformation.In November 2022 Aiko Solar and the Comprehensive Emission Management

Emergency Rescue Team in Suxi Town held a Hydrofluoric

Acid Leak Emergency Drill which helped employees gain a

deeper understanding on how to properly wear PPEs how Aiko Solar cares about the impacts of climate change and strives to reduce greenhouse gas emission by improving processes

to use tools for containing leaks of hazardous substances using clean energy and calculating carbon footprint in order to achieve the emission reduction objectives.and how to interconnect with the fire brigade and enterprises

around the Company and helped increase employee's ability

of emergency response.Greenhouse Gas Management Performance

Hydrofluoric Acid Leak Emergency Drill

Aiko Solar keeps optimizing the boundaries of its greenhouse gas emissions calculation. In 2022 the greenhouse gas emitted

by Aiko Solar totaled 22.936 tons carbon dioxide equivalent per megawatt a reduction of 9.00% year on year.System Certification

Aiko Solar Greenhouse Gas Emission Performance1

Aiko Solar never stops its efforts into improving its environment management

system. In 2022 Production Bases passed the ISO 14001 environmental Indicator Unit 2022 2021 2020

management system certifications.Total carbon emissions Ton carbon dioxide

735366.32455525.04303502.16

(scope 2 emissions) equivalent

Emission intensity Ton carbon dioxide

22.93625.20426.763

(per unit product) equivalent/megawatt

1Note: Data covering Tianjin Base and Zhejiang Base. The total number is increased because new constructions happened in 2021 and 2022 to production

Certificate of Zhejiang Base’s bases.Environment Management System

51 522022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Protect Ecology and Environment with Green Escort

Green Factories Wastewater Waste Gas and Solid Waste

Management

In order to achieve its emission reduction objectives Aiko Solar focuses on green factory construction with on-going efforts

into its green operation and green development. In 2022 Zhejiang Base was included into the List of Green and Low Carbon

Factories in Jinhua 2022 and Tianjin Base applied for the qualification of Green and Low Caron Factory. Aiko Solar focuses on renovation of production equipment put more efforts into pollutant management does a robust job in

removal of solid waste wastewater and waste gas and vigorously controls pollutant release in production activities.Product Carbon Footprint Accounting

Wastewater Control

Aiko Solar has measured and calculated the full life cycle carbon footprint of its solar cells to support the reform for low-carbon

technologies and the calculation of carbon reduction performance. According to measurements and calculations 1MW ABC

solar cells can reduce 27000 tons carbon dioxide equivalent (similar to the result of planting 1.46 million trees) over their full life The major sources of wastewater in Aiko Solar are production workshops

cycle (25 years). technical processes (acidic wastewater alkaline wastewater and high-

concentration acidic wastewater from post-washing process) wastewater

from waste gas treatment systems other production wastewater (wastewater In 2022

Carbon Fixation Management from cooling towers and rejected water for producing pure water) and Aiko Solar discharged

domestic wastewater. The Company has laid down internal policies

and procedures including Wastewater Operation Control Procedures

Wastewater Pollution Prevention and Control Policy Wastewater Station

Aiko Solar increases the green Operation Management Policy and Wastewater Processing Station 239.326 tons

space in its factories to give full Operating Procedures where control indicators for technological processes

so to deliver a green space of about wastewater per megawatt

play to the carbon fixation benefit. and internal release criteria that are stricter than national standards are

In 2022 Aiko Solar fully renovated 20800 416 defined and imposed an incentive and punishment scheme on wastewater damaged green space square meters tons carbon dioxide discharge to boost the wastewater control and ensure the discharge of

that can fix equivalent each year2 qualified wastewater. In 2022 the wastewater discharged by the Company a reduction of

was lower than the limits laid down in Emission Standard of Pollutants for

Battery Industry (GB30484-2013) and Discharge Standard of Pollutants for

Municipal Wastewater Treatment Plant (DB33/2169-2018). 28.65%

Other measures have taken by Aiko Solar including the construction of

waste water treatment station improvement of technological processes year-on-year

and strict separation of production wastewater domestic wastewater and

rainwater to reduce wastewater and increase the treatment efficiency. In

2022 Aiko Solar discharged 239.326 tons wastewater per megawatt a

reduction of 28.65% year-on-year.Renovated Green Space in Aiko Solar Factories

2Note:Assume that one square meters of grass and trees can fix 20 kg carbon dioxide equivalent. Aiko Solar Wastewater Treatment Station

53 542022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Protect Ecology and Environment with Green Escort

Aiko Solar Performance on Wastewater Discharge3 Solid Waste Disposal

Indicator Unit 2022 2021 2020 Aiko Solar actively advances the work of reducing solid waste and the

proper treatment of solid waste with strict execution of its Solid Waste

Total wastewater discharge Ton 8064525 6539231 3595367 Management Procedures and Solid Waste Management Policy and

through comprehensive utilization and full reuse of its solid waste

Wastewater discharge intensity and sorted collection of solid waste that cannot be recycled.(per unit product) Ton/MW 239.326 335.440 270.366 For hazardous waste Aiko Solar uses special bags or intermediate

bulk containers arranges special storage facilities where fences help

COD Ton 321.640 299.063 148.498 separate different types of hazardous waste and sends the classified

waste to qualified third-parties for proper treatment. For general

waste the Company performs classified collection and storage and

Ammonia Nitrogen Ton 12.796 18.798 17.044 engages qualified third-parties for proper treatment and recycling for

example producing bricks or mineralizers from the waste to make

3Note: Data covering Tianjin Base Zhejiang Base and Foshan Base. The total number is increased because new constructions happened in 2021 and the most out of resources. Aiko Solar Hazardous Waste Storage Facility

2022 to production bases.

Aiko Solar Performance on Hazardous Waste4

Waste Gas Control Indicator Unit 2022 2021

Hazardous waste produced Ton 170.23 133.53

Aiko Solar sets technical parameters and arranges specific Hazardous waste production

technical processes against pollutants in strict accordance intensity (per unit product) Ton/MW 0.005 0.007

with Waste Gas Pollution Prevention and Control Policy

to ensure qualified waste gas emissions. These technical Hazardous waste disposed Ton 179.37 136.02

processes include for example the one stage alkali

spraying three-stage silane combustion + pulse jet bag

4Note: Data covering Tianjin Base Zhejiang Base and Foshan Base. The total number is increased because new constructions happened in 2021 and

filtering+ water spraying + acid spraying condensing unit 2022 to production bases.(built in the equipment) + combustion unit (built in the

equipment) + activated carbon treatment acid and alkali Aiko Solar Performance on General Waste5

spraying four stage redox spraying condensate-recycling

+ activated carbon treatment.Indicator Unit 2022 2021

General waste (sludge)

produced Ton 59742.37 48517.14

General waste production

intensity (per unit product) Ton/MW 1.773 2.489

General waste (sludge)

disposed Ton 59696.37 48453.82

5Note: Data covering Tianjin Base Zhejiang Base and Foshan Base. The total number is increased because new constructions happened in 2021 and

2022 to production bases.

Noise Management

Aiko Solar has laid down its Noise Management Policy with reference to the Law of the People's Republic of China on

Prevention and Control of Environmental Noise Pollution takes effective measures such as soundproofing sound deadening

Waste Gas Treatment Facilities and vibration proofing against sources of noise and measures noise values quarterly and monthly. In 2022 the noise from Aiko

Solar was lower than the limits set forth in relevant national standards.

55 562022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Protect Ecology and Environment with Green Escort

Aiko Solar Energy Consumption Performance6

Promote Circular Economy Indicator Unit 2022 2021 2020

Comprehensive Ton (standard

energy consumption coal equivalent) 144357.92 122490.36 75921.58

Comprehensive

Energy Management energy consumption Ton standard coal intensity (per unit equivalent)/ MW 4.284 6.283 5.709

product)

Continuous efforts into development of internal energy management Electricity

consumption kWh 1263302784 995099496 616284004in Aiko Solar has delivered the Energy and Resources Saving

Management Policy which specifies about duties and authorities

The comprehensive energy consumption Natural gas optimization of technical processes and equipment operation at a 3consumption m 3986949 3262467 3053239intensity was cost-effective manner for a full-process energy management.

4.284 tons standard coal Aiko Solar’s energy consumption is basically attributed to direct and 6Note: Data covering Tianjin Base Zhejiang Base and Foshan Base. The total number is increased because new constructions happened in 2021 and equivalent per megawatt indirect production equipment. In 2022 a range of actions including 2022 to production bases.

use of clean energy elimination of top users of electricity adoption

of equipment that consumes less equipment and energy efficiency

a reduction of renovation of technological processes coupled with the further Case Renovated manufacturing processes for higher energy efficiency

upgraded energy structure helped increase the energy efficiency

31.82% and reduce the consumption of fossil energy in Aiko Solar. Zhejiang Base and Tianjin Base obtained the ISO 50001 energy

management system certification. In 2022 the comprehensive Zhejiang Base newly adopted a heat exchanger that recycles and stores the compression heat from centrifugal air

year-on-year energy consumption intensity of Aiko Solar was 4.284 tons standard compressors and uses the heat in surface texturing machine to lower the temperature of electric heaters which

coal equivalent per megawatt a reduction of 31.82% year-on-year. could save energy up to 43%.Aiko Solar Energy Saving Projects 2022

Nitrogen generator afterheat recovery

project Saved

4215700 kWh

in a year approximately

Centrifugal air compressor heat

recovery project Saved

Certificate of Energy Management System

17260000 kWh

in a year approximately

Low PUE value (for modular server

rooms) project Heat Transport Pipelines

PUE value was about 1.4

57 582022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Protect Ecology and Environment with Green Escort

Water Resource Management Aiko Solar Water Saving Performance

7

Indicator Unit 2022 2021 2020

Goal Setting Water consumption Ton 9425962 8172808 5408240

Water consumption intensity

(per unit product) Ton/MW 279.728 419.236 406.691

Aiko Solar manages water resource in detail with strict monitoring of water consumption at each step and sets water saving Including: water consumption

goal given its own conditions and puts water saving result into performance review. in office Ton 199576 192073 160865

Including: water consumption

in production Ton 9226386 7980735 5247375

Primary water consumption Ton 8149721 8172808 5408240

Water Use Management In 2022

the water consumption intensity of Aiko Solar was

Water Stress Risk Assessment

The domestic water and production water used by Aiko

Solar are essentially from municipal water supply system. 279.728 tons per megawatt

It tries to reduce water consumption and increase water Aiko Solar gains a swift understanding of any changes in local water resource and water risk and work out measures

efficiency by laying down Water Saving Energy Policy accordingly to ensure enough water resource is available to support its long-term operation and sustainable development.using the same water for different purposes recycling a reduction of

rejected water and recycling condensate water. In 2022

the water consumption intensity of Aiko Solar was 279.728

tons per megawatt a reduction of 33.28% year-on-year. 32.28% Packaging Material Management

year-on-year

Aiko Solar has worked out the Environmental Protection and

Resource Saving Policy. Given the impact of packing materials over Recycled packaging of raw

Water Saving Projects at Zhejiang Base 2022 their life cycle the Company gives preference to harmless and non- materials (approximate)

toxic materials that can be easily degraded or recycled and practices

the principle of reasonable packaging by avoiding the excessive

use of packaging materials and the generation of packaging waste. 2000 tons

Furthermore Aiko Solar is committed to building a circular supply

Reuse rejected water from Recycle and reuse condense water Water saving in surface chain so that it is possible to closely trace the use of packaging

cooling tower Saved from air-conditioning systems Saved texturing Saved materials by companies in the chain. In 2022 Aiko Solar recycled

approximate to 2000 tons of packaging of raw materials.

912500 tons 22000 tons 405000 tons

water in a year water in a year water in a year

ROR renovation project Recycle and reuse water from instrumentation

Saved in water purification station Saved

365000 tons 16000 tons

water in a year water in a year

7Note: Data covering Tianjin Base Zhejiang Base and Foshan Base.The total number is increased because new constructions happened in 2021 and 2022

to production bases.

59 602022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Protect Ecology and Environment with Green Escort

Clean production measures by Aiko Solar

Strive for Low-carbon Operation

Replace raw materials that bring heavy toxic and harmful effects with non-toxic and harmless or less-toxic and less-

harmful materials;

As an active response to China’s call for clean production Aiko Solar uses environment friendly production technologies Less-toxic and less-harmful raw materials are isolated from other materials strictly sorted and clearly identified in

processes and equipment that protect the soil environment for integrating the low-carbon and circulation idea into the whole warehouses and workshops; and the use of toxic and harmful raw materials must be controlled;

production and operation. Replace manufacturing processes and equipment that produce less pollution and deliver higher energy efficiency with

manufacturing processes and equipment that bring the opposite effect;

Clean Production Adopt the comprehensive use or circular use of solid waste wastewater and afterheat from production processes

use pollution prevention and control technologies that can meet national or local standards on pollutant emission and

discharge;

Zhejiang Base has formulated a raft of internal management policies including Clean Production Management Policy Clean

Production Plan and Objectives and Clean Production Incentive Procedures set up a Clean Production Management Office Workshops must strive to minimize energy consumption in production processes and increase energy efficiency and

and established an organizational system where the General Manager is fully responsible the overall clean production and EHS the circular utilization of energy;

Management Office takes charge of specific jobs workshops and relevant departments take charge of their respective duties.Workshops must strictly control environmental pollution caused throughout the entire production process make sure

Zhejiang Base has passed the third-party clean production audit. The clean production renovation in the factory can that the production space and environment are clean;

Sales Department must use adequate care on product quality after products are shipped and before they are delivered

to customers to prevent products from being damaged or contaminated during transportation.HNO3 NaClO

Ecological and Environmental Protection

help reduce the A4 paper consumption by nitric acid consumption by sodium hypochlorite consumption by

30000 sheets 21.3 kg 3650 kg Aiko Solar honors the value of ecological civilization and pledges to make no production or construction within the red line of ecological protection. Zhejiang Base prepared Soil and Underground Water Self-Monitoring Plan which was reviewed by the

expert board arranged by local environment authority and registered with the authority. According to the plan Zhejiang Base

performs monitoring on its own to obtain the background value of soil environment and values of soil monitoring indicators and

provide warnings on soil pollution through quantitative data for the ultimate purpose of soil protection. In 2022 45 indicators on

NH soil pollution as well as the measured values of PH fluoride silver tin and petroleum hydrocarbons from Zhejiang Base met 3 relevant standards.water consumption by wastewater generation by ammonia (NH3) emission by

10000 tons 8000 tons 1.64 tons

H2S This marks its continuous efforts

into increasing resource efficiency

hydrogen sulfide (H2S) emission by volatile organic compounds (VOCs)

and reducing the environmental

8.46 0.5 impact. In addition Tianjin Base is kg emission by tons doing an active job in this regard.

61 622022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Protect Ecology and Environment with Green Escort

Green Office

Aiko Solar tries every effort to create a green working

environment by encouraging employees to save water

electricity office consumables commuter energy

consumption and to practice a lifestyle that saves

energy and protect the environment. In 2022 Aiko Solar

started a green office patrol scheme under which the Save water

Administration Department and Production Department Install sensing faucets urinals and toilets that can save water in restrooms;

performs patrols and persons that violate green office

Enhance water saving publicity and turn off water taps immediately after use

rules are subject to punishment. This is one of the

Company's actions to practice the green concept.Aiko Solar Signs for Saving Energy Save electricity

Make the most out of natural light and reduce electricity consumption caused by

lighting system;

Turn off lamps air-conditioners and power off equipment at the end of a working day

or if you will leave the office for a long time;

Power off computers and electrical appliances that are at long-time standby or when

jobs are completed;

Arrange someone to take care of lamps and air-conditioners in public areas depending

on the natural light and natural temperature to prevent they are on overnight;

The Company plans to pave PV panels on unused plant rooftops in 2023 as a way to

increase the utilization of clean energy

Save money

Save office consumables and reduce paper consumption by editing documents

on electronic media as much as possible;

Encourage the use of both sides of paper;

Minimize the printing of documents;

Try to reuse envelopes and copy paper;

Refill printer and copier cartridges that run out of ink or toner;

Reduce the use of disposable products

Waste sorting

Kitchen waste is transported by canteen staff to designated waste site on a daily basis;

Office waste sorting and recycling;

Commuter management

Install solar charging stations and encourage employees to use electric cars;

The Company plans to purchase electric vehicles for business use in 2023

Foshan Base PV Generation Project on Rooftops

63 64Create Value for

Customers at

Steady Pace

Aiko Solar put customers at the center of what we are doing

and adhere to the principle of quality first. We are committed

to providing high-quality products to our customers building

and improving our supplier management system and treating

suppliers as partners to ensure a stable supply chain and timely

delivery of goods. We provide excellent after-sales service and

actively protect the rights and interests of our customers.Responses to UN SGDs2022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Create Value for Customers at Steady Pace

Protect Rights and Interests of Customers Strengthen Product Quality Management

Aiko Solar spares no effort to protect customer rights and interests by creating smooth communication channels and As a part of its work to provide high-quality products and services to customers Aiko Solar improves its quality management

providing premium products and great after-sale services. During the covid-19 pandemic we managed to make on-time structure having laid down more than one hundred management procedures on product quality to further regulate quality

delivery. management processes. In 2022 our products were widely recognized by customers.Customer Rights Protection

Attaching importance to the protection of customer rights and privacy Aiko Solar has specified how to identify and protect Aiko Solar has formulated a wide range of management

customer properties in its Sale Process Management Procedures. Customer information is stored in CRM and SAP systems policies and procedures including Modules Management

to which only authorized persons whose work is related to customers have access which maximizes the protection of Procedures for Quality Lab Management Policy for

customer rights and privacy. Quality Lab Final Quality Control Standard Operating

Procedures Out Quality Control Standard Operating

Procedures and set up Quality Management Department

On-time Delivery and CQO Office for comprehensive quality management.In 2022 97.32% of Aiko Solar products were rated Grade

A and 96.21% rated Grade A (effective).In 2022 keeping the situation of COVID-19 pandemic in mind Aiko Solar tried to know about the delivery prioress fully

coordinated the shipment plan and logistics system sought special vehicles from reliable sources and booked vehicles in

advance. Aiko Solar also achieved vehicle-pooling across-city by making precise plan and therefore achieved 100% on-time

delivery without any logistics complaint.Quality Management Department

Good After-sale Services

Quality Quality Management Quality Delivery and System Management Aiko Solar

Lab Departments at Bases SQE Office Support Department Department Digital Energy

Aiko Solar has Customer Complaints Handling Control Procedures under which customer complaints are managed in a

multiple grade system and handed over to primary department leaders secondary department leaders supervisors or In-process In-process In-process In-process In-process In-process

engineers as applicable. What is more Aiko Solar broadens its customer communication channels including phone calls Management Management Quality in Quality in Quality in Quality in in Factory Six in Factory One Factory Two Factory Four Factory Five Factory Three

WeChat messages and emails. In 2022 the overall rate of customer complaints received by Aiko Solar dropped by 64.29%

compared to the previous year; and 93.20% of customer complaints were resolved.The Company performs regular customer satisfaction surveys containing quality rating technology rating commerce rating

and satisfaction ranking. Given results obtained from these surveys the Company performs targeted corrections and

preventions to bring better services to customers continuously improving customer satisfaction.Overview of Customer Complaints in Aiko Solar

Indicator Unit 2022

Customer complaints resolved % 93.20

Aiko Solar Organizational Structure for Quality Management

Reduction of customer complaints % 64.29

6768

Module production

Module testing Reliability Laboratory

IV metrology R&D Quality Management

Precision Analysis

Instrument metrology Laboratory

Failure analysis IQE

PQE

TQE

Module Quality

Department

QA/QE

OBA

TQ

IQE

PQE

TQE

IQE

PQE

TQE

IQE

PQE

TQE

IQE

PQE

TQE

Domestic Delivery and

Support Department

Overseas Delivery and

Support Department

Quality System

Quality Improvement

CQE

DQE

System QS

SQE

QC2022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Create Value for Customers at Steady Pace

Overview of Aiko Solar Suppliers

Refine Supply Chain Management Indicator Unit 2022

Total suppliers / 275

Aiko Solar gives importance to supply chain management with In which: Chinese Mainland suppliers / 250

continuous work on improving supply chain stability. Besides we hold

technological exchanges with suppliers on a regular basis to work P ercentage of Chinese Mainland suppliers % 75

hand in hand with them for mutual development. H ong Kong Macao and Taiwan suppliers / 5

Supplier Chain Management P ercentage of Hong Kong Macao and Taiwan suppliers % 2

Overseas suppliers / 20

As a part of its continuous work on building the responsible supply

chain Aiko Solar keeps improving our management policies and Percentage of overseas suppliers % 7

organizational structure which helps identify possible supply chain

risks and work out measures. What is more we practice the green Including: Core silicon wafer suppliers / 17

procurement principle for example provisions on the use of Auxiliary material other than silicon suppliers / 88

environment friendly raw materials are included into contracts and

we promise not to purchase and use disputed materials to advance Equipment suppliers / 120

the sustainable development of the supply chain.In 2022 Aiko Solar ensured the continuity of material supply for a Infrastructure suppliers / 50

stable supply chain through comprehensive research on suppliers Total suppliers audited / 275

regarding their supply ability production capacity and logistics ability.We also imposed traceability management on suppliers to ensure the Supplier violations of contract / 0

reliable quality of materials from suppliers.Supplier Management

Aiko Solar has laid down the Supplier Development and Management Training and Exchanges

Procedures and has well-established processes for supplier

sourcing selection and review with EHS factors considered. The

Company performs supplier performance review on on-time delivery Aiko Solar gives importance to the shared development with its supply chain partners by holding exchanges and training

and service quality each quarter and rates their product and service activities with them on a regular basis. In 2022 company organized technological exchanges with suppliers on a monthly

quality according to the reviews. basis. Their discussion covered the development direction of slurry products and the progress of experiments for developing

new materials that can lower costs and increase efficiency.All suppliers are required to sign the Anti-Corruption Agreement. As

a core enterprise in the supply chain Aiko Solar clarify provisions

on environmental protection safety human rights labors disputed Aiko Solar Performance on Supplier Training

territory procurement anti-corruption to help improve internal

ESG management in suppliers. In 2022 silicon wafers purchased

from suppliers in areas like Yinchuan and Yunnan were increased Indicator Unit 2022

significantly which account for about 20% of materials purchased.Number of supplier training sessions / 96

Duration of supplier training hour 96

Supplier training participants / 1920

69 70Focus on Corporate

Responsibilities for

Good

Aiko Solar values employee cultivation and care contributes

a well-established training system and promotion path for

employees and takes a raft of initiatives to create a good

working environment encouraging them enjoy the Company's

development achievements and move forward together with the

Company. During the Covid-19 pandemic the Company tried

its level best to combat against the pandemic with all social

forces which fully evidenced its bold fulfillment of its social

responsibilities. In 2022 Aiko Solar donated a total of 300000

CNY to charity including Zhejiang Base donated 200000 CNY

to Yiwu Charity Federation Tianjin Base donated 100000 CNY

to the Red Cross for rural development promotion.Responses to UN SGDs2022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Focus on Corporate Responsibilities for Good

By profession (Person) By ethnic group (Person)

Safeguard the Rights and Interests of Employees

61618250

Employment Management

Aiko Solar abides by applicable laws including the Labor Law of the People's Republic of China and Law of the People's 2145

Republic of China on Employment Contracts and has laid down internal management procedures including Recruitment

Management Procedures. In its recruitment process the Company follows the equality diversity and non-coercion principles

does not discriminate against anyone based on factors including religion family status or disability and uses no child labor or 698 887

forced labor. 133

Managers Salespersons Minor ethnic groups

Aiko Solar Employee Overview 2022 Number of R&D Production staff Non-minor ethnic groups

employees

Total employees By gender

Total male Total female Aiko Solar has a well-established employee benefit system under which it pays all kinds of social insurances and house

employees employees provident fund and paid annual leave for employees and maternity leave and breast breeding leave for female employees.What is more the Company has a flexible compensation scheme that connects organizational performance with personal

9137 Person 7187 Person 1950 Person performance on the basis of its job-level system and career development paths available to employees. Employees at certain

roles are entitled to the share incentive plan which can motivate employees effectively for better productivity and performance.Aiko Solar observes the Law of the People's Republic of China on Prevention and Control of Occupational Diseases and based

on which has formulated its own Occupational Health Management Policy. In addition to arranging occupational health check

each year and buying work safety insurances for employees the Company holds PPE use examinations on employees each

By education background (Person) By age (Person) year. Employees engaged in high-risk roles are required to obtain relevant internal and external certificates. The Company has

its occupation health and safety management system certificated according to ISO45001 standards for years in a row. In 2022

Aiko Solar obtained 202 certificates either as a company or via its employees.

6159

5456

Internal and External Certificates Obtained by Aiko Solar 2022

3652

2682 High/Low Voltage Electrical Permit 60

Operator for Special Equipment 9

Operation Permit for Pressure Vessels

296293

Safety Management Certificate for Hazardous Chemicals 65

Master's degree or above Less than 30 years Operation Permit for TMA Cylinder Change 8

Bachelor 30 years to 50 years Operation Permit for Hazardous Chemicals 50

Junior college or below 50 years or older

Safety Management Certificate for Special Equipment 7

010203040506070

73 742022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Focus on Corporate Responsibilities for Good

Alternate principal

engineer Excellent Equipment Compulsory Outward

Sword Riding senior

New senior

Skill tree – Sword courses for technical

engineer riding senior engineers exchanges engineer

Employee Development Sword riding knowledge

Alternate senior

New staff Compulsory Equipment Excellent

engineer

Focusing on talent empowerment Aiko Solar has released internal management procedures including Training Management Full-process courses for engineer learning Skill tree – Shiny staff Shiny sword

Procedures Management Procedures on Knowledge Contribution from Leaders and Key Employees and Internal Trainers staff engineers sword engineer Shiny sword

Management Procedures as a part of its on-going work on improving the employee career development system and knowledge tree

encouraging them to realize their own value. Alternate staff

engineer

Excellent Equipment Equipment Compulsory Technology New

Sword sharpening courses for engineer Fault tree – Sword Skill tree – Sword Deepening engineers engineer

Development System sharpening sharpening Class Sword sharpening knowledge

One- Compulsory Alternate engineer

Aiko Solar has a complete employee development system in place. It has worked out differentiated development strategies New Equipment Equipmenthundred courses for Assistant

and training programs for management job family (M path) technology professional and marketing job families (P path) and employee Day assistant Skill tree – Sword Fault tree – Sword casting casting engineer Sword casting

management and operation job families (T path). Project engineers Sword casting

knowledge tree

Employee Development System

· D evelopment strategy: define skill tasks and capability criteria for factory

managers to build a model for the role of factory managers

Rising

Sun Project · Development forms: course learning + job rotation + benchmark visits +

Develop alternate presentation and certification

Job path Development strategy Training projects factory managers · D evelopment strategy: reshape the leadership model and

develop the standards

Combination of training and practice: design Early Sun Project Morning Sun Red Sun Project · C ompetency gaps: identify common and personal competency

M path empowerment programs for key jobs at different Project Red Sun Project and Develop alternate directors gaps through assessments

levels to increase on-job capabilities of leaders. Rising Sun Project · Development forms: theory learning/tests-workshop

discussions/learning feedback-practices/ thesis defense

Professional and technological talents: work out a Sword Casting Project Sword Morning Sun Project · Development approach: combine training and practice

P path development scheme for identifying fostering and Sharpening Project Shiny Sword Develop alternate managers

fast developing excellent talents and accelerate Project Sword Riding Project · Development focus: tasks-base management knowledge

their growth. and PDT R&D Managers and case studies

· Learning forms: Prerequisite learning/tests + physical

intensive training + job rotation +reports

Follow the three-level training system with more

T path efforts into implementation of the OJT Training Rock Project Early Sun Project · D evelopment focus: general management

Standard Operating Procedures. Develop alternate supervisors knowledge

· Learning forms: Prerequisite learning + physical

intensive training + presentation

Development Strategies and Programs M sequence training program

75 762022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Focus on Corporate Responsibilities for Good

Case Dawnlight Project launched to help management trainees grow Aiko Solar Performance on Employees Training

Indicator Unit 2022

In July 2022 Aiko Solar started its Dawn Light Project a key program for management trainees who would

receive four training modules including front learning team outreach culture conversion mind change and Number of training sessions / 1567

upgrading. On average each trainee was trained about 400 hours.Training duration hour 391101.12

Average training duration of leadership training per

manager hour 39

Average training duration per technology

professional hour 51.17

Average training duration per new employee hour 24

External Training

Aiko Solar puts importance to the coordination of external high-quality training resources. In 2022 the Company invited several

industry experts and scholars to provide professional training for managers internal trainers and employees.Dawn Light Project Training Site

Case Human Resource Management for Non-HR Managers

In 2022 Aiko Solar held a human resource management training course for non-HR managers. This course

Digital Learning Platform empowered business managers with human resource management capabilities in several aspects including how to identify roles in a team how to set up an efficient team how to develop your employees how to do

performance management how to motivate your employees and how to establish employee retain and exit

mechanism.Aiko Solar has launched a digital learning platform where online classrooms include Main Classroom New Employee

Classroom Cells – Basic Classroom and Lean Quality Classroom to help increase training efficiency.Main Classroom New Employee Classroom

It covers the broadest range including leadership It provides knowledge that new employees are required

general technologies professional skills and company to learn about and understand such as company profile

polices corporate culture and activities of the company

Cells-Basic Classroom Lean Quality Classroom

It is applied to employees engaged in equipment It basically provides ideas and tools used for lean

production and manufacturing processes. quality

Training Site

77 782022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Focus on Corporate Responsibilities for Good

Case Case Course Development based on Lessons and Experience Promotion Mechanisms

The Job Management Procedures of Aiko Solar specify the promotion mechanisms for different types of employees i.e.In 2022 Aiko Solar provided a training program for internal trainers. This performance improvement-oriented operator family management family and professional family. Four promotion windows are available to operators each year and

course divided the process of gaining cases from lessons and experience into several modules that can be two to professionals. A promotion window is open to management staff each month when the administration management team

employed with tools and assessed against standards and helped internal trainers understand the concepts holds a meeting.principles and applicability of case study method in a company as well as the methodology of case

development and teaching. In the end these internal trainers delivered their own draft cases and teaching Candidates are expected to meet the conditions including compliance with ethics in business conduct scope of development

frameworks. path performance education background duration and job eligibility. The starting and completion of a promotion must be

circulated to all employees through the Company's notification system to ensure a fair and transparent process.Rights and Interests of Employees

Aiko Solar honors employee feedback and their engagement and satisfaction.All departments organize discussions for front-line employees and technological

professionals regularly as a way to improve employee satisfaction. These In 2022 organizations of all

discussions enable department leaders to understand current challenges faced levels in Aiko Solar held

by employees in both work and life to help them solve these problems; and

also present the Company's benefit policies and help employees understand

the Company's policies and direction. In 2022 organizations of all levels in Aiko 442

Solar held 442 employee discussions to have their voice fully heard and to help

employee discussions

them solve real problems. The Company held 56 employee care activities to

Training Site increase the sense of belongingness and happiness of employees.Case Case Dragon boat race on landBusiness etiquette and writing training for salespersons

In June 2022 Zhejiang Base held a dragon boat race on land to celebrate the Dragon Boating Festival. The

In 2022 Aiko Solar organized a training program on business etiquette and writing to help salespersons race was designed to stimulate the teamwork spirit and facilitate exchanges among employees for betterbehave properly in business and social occasions. The course covered several topics including “What Is team cohesion.Etiquette” “Why Should We Learn Etiquette” “Social Etiquette” and “Differences Between Domestic andInternational Business Etiquettes”.Training Site Zhejiang Base Dragon Boat Race on Land

79 802022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Focus on Corporate Responsibilities for Good

Case Keep employees cool in summer Case Take care of female employees

In July 2022 Zhejiang Base provided frozen watermelons and large ice creams to front-line workers as a part of On the International Women's Day in 2022 Aiko Solar held a wide range of activities including sending flowers

their effort to keep employees healthy in the hot summer. to each female employee to thank for their hard work and contribution to the Company.图浙江爱旭夏日送清凉现场照片

Zhejiang Base employees received “cool” in summer Female Employees on the International Women's Day

Aiko Solar cares much about the mental and physical health of

its people and prioritizes the work of creating a health safe and

comfortable workplace for its employees. As of the end of 2022

the Company had 23 employee associations that covered over 900 With the help of these associations

employees. With the help of these associations the Company held The Company had covered over the Company held over

over 200 team buildings and entertainment activities.

23900200

employee associations employees team buildings and entertainment activities

81 822022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Focus on Corporate Responsibilities for Good

Case Basketball Association Case Mountain Climbing Association

In December 2022 Zhejiang Base Basketball Association held its first basketball activity which helped them As of the end of 2022 the Mountain Climbing Association at Aiko Solar had successfully organized several

relax both mentally and physically and help them connect with colleagues. climbing activities including Desheng Cliff Flying Eagle Path and Eight-Ridge Path which helped improve the

mental and physical health of employees.Basketball Association Activity Climbing Activity

Case Football and Frisbee Association

In 2022 Aiko Solar organized several football and frisbee matches which adds colors to the life of employees

and help them relieve their work pressure.Football and Frisbee Activity

83 842022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Focus on Corporate Responsibilities for Good

Training and Emergency Drills

Work Safety

Aiko Solar attaches importance to

safety training identification of safety

hazards and emergency drills with all Number of EHS training EHS training duration

Aiko Solar has a wide range of internal policies on work safety including Construction Project Management Procedures Targets kinds of safety measures developed and sessions

and Indicators Management Policy Special Operations Management Policy Emergency Response Management Policy and implemented. In 2022 the Company

Hazardous Factors Management Policy to ensure and regulate its work safety. organized 518 EHS training sessions

hours

that covered 27618 participants for a 518 811

total duration of 811 hours.Work Safety Measures It also performs well in identification of Number of EHS training Number of safety emergency

safety hazards and emergency drills participants drills

for lowering safety risks. In 2022 the

Zhejiang Base has obtained the grade two qualification of safety standardization enterprise and awarded as the demonstration Company launched 708 campaigns to

enterprise for construction of standardization pilot areas in national industry and trading industries by Jinhua Emergency spot safety hazards and 234 emergency 27618 234

Response Bureau in 2019. In 2022 with strict measures for construction management and management of significant sources drills in which a total of 9688 people

of risk the Company achieved overall work safety. participated.Number of participants for Number of campaigns to spot

safety emergency drills safety hazards

Category Measure

9688708

* Develop the construction management policy regarding factory affairs and

arrange the construction management process with respect to contractors; Lost workdays due to work

* Joint construction survey and pre-construction briefings; injury

* Daily pre-construction training/toolbox meeting; 44 days

Construction * Set up visual signs for construction operations containing construction

management application forms/risk analysis/training and staff eligibility/safety check

records;

* Specify regulatory requirements perform patrols every two years for Case Safety training

average construction arrange full-process manual monitoring and automatic

monitoring for dangerous operations and areas.At the 2022 annual work safety

meeting Aiko Solar introduced and

explained the new Work Safety Law

* Develop the chemical management policy regarding factory affairs and and the “fifteen rules” from Work

implement the approval process for chemical filling and loading; Safety Committee Office under the

State Council and played videos on

* Regulate the protections on chemical filling and loading operations and the

typical work accidents that happened

standards on emergency supplies and first-aid medicine and carry out field

in the industry to employees to

supervision;

enhance their safety awareness.Chemicals * Set up visual signs on filling and loading operations over chemical filling and

management loading application forms/PPE standards/safety checklist/notes to factory

visitors;

* Newly build chemical filling and loading supervision booths and improve

operation steps to reduce exposure risk. Aiko Solar Annual Work Safety Meeting

85 862022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Focus on Corporate Responsibilities for Good

Case Solid waste knowledge training Case Various measures to combat against the pandemic

In 2022 Zhejiang Base provided a training course on solid waste knowledge where the requirements on In 2022 Zhejiang Base spared no effort to reduce the contact between people in external vehicles and

collection storage and transportation of as well as the disposal process for solid waste were detailed to people in the factory by arranging fixed fences and mobile toilets and delivering box meals and gift

deepen employees’ knowledge of properties of solid waste and to ensure solid waste is disposed under packages. Volunteers in the Base made full preparation for checks at 5:00 am each day to ensure the point-

regulations. to-point control. Zhejiang Base ensured the safety of its people to the largest extent by coordinating a large

number of external resources and improving the efficiency of nucleic testing. Throughout the year they

performed 280000 nucleic tests.Solid Waste Knowledge Training at Zhejiang Base Zhejiang Base coordinated Shutter Buses for employees during the pandemic

Aiko Solar sent continuous supports to front-line workers who fought against the pandemic. The Company purchased and

delivered 100000 disposable facial masks to the front-line workers including law enforcement workers and public officials in

Suxi Town send gifts to workers on duty in Suxi Hospital and donated materials such as drinks and instant noodles to pandemic

Fight against the Pandemic prevention and control spots. This marked the Company’s contribution to the war against the pandemic.

2022 was a critical year for the successful campaign against the COVID-19 pandemic Aiko Solar showed its commitment to

social responsibility with strong will for standing together through storm and stress.In 2022 the COVID-19 pandemic continued spreading across the world; against which Aiko Solar released a variety of

pandemic prevention and control measures with swift responses from Zhejiang Foshan and Tianjin Bases which accordingly

formulated respective emergency response plans. Zhejiang Base provided nucleic testing for employees and required the

presentation of negative testing results obtained within 24 hours by visitors; and visitors in external vehicles that entered the

Base were not allowed to get off. Foshan Base create a file for each person and performed field disinfection periodically. Tianjin

Base gave full supports to the Company's nucleic testing and ensured all employees to take nucleic testing.Aiko Solar Donated Disposable Masks The Company Sent Gifts to Front-line Workers on Duty

87 882022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Future Outlook

Future Outlook

With climate change intensifying across the globe climate change has become a common challenge that threatens the Aiko Solar puts customers at the center of everything thanks to its efforts and achievements over the past years and has

mankind and the green and low-carbon transformation has been a global consensus. Replacing traditional energies with repeatedly broken through the bottlenecks of photoelectric conversion efficiency of solar cells to inject strong momentum

clean renewable ones is a crucial step for the low-carbon transformation. As the world’s second-largest economy China is an into the development of the industry and energy transformation. The Company will continue building an industry-wide

important participant and contributor in the campaign dealing with the climate change. And the development center of global responsible supply chain firmly forge along the way of green and sustainable development and contribute to a climate-

new energy industry will be gradually moved to China. Guided by the “dual-carbon” goals China for the first time produced friendly society in and beyond China.over one terawatt-hour by wind and solar energies in 2022. This has marked the explosive development of clean energies.The PV industry has become the main force leading the energy revolution and the most important clean energy contributor. Heaven does not speak and it alternates the four seasons; Earth does not speak and it nurtures all things. The world today

is marked by unseen climate changes. With a firm belief in the community with a shared climate future for mankind Aiko

Aiko Solar never stops its pursuit of excellence. From monocrystalline to polycrystalline and from PERC to ABC cells it has Solar is here to stand shoulder on shoulder with all possible partners. We are going to play our role in global clean energy

made strategic predications and made the right choices in each stage along the journey of PV technologies. The Company development and in the world's zero-carbon and sustainable future!

will be bound to get hold of unprecedented opportunities and ride on the waves by contributing to energy security and low-

carbon development and providing reliable and cost-effective clean energy solutions to the world.

89 902022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Appendix

Appendix I: Index Table of Indicators Indicator No. Description Page

The GRI Sustainability Reporting Standards (GRI Standards) issued Governance

by the Global Sustainability Standards Board (GSSB) 102-18 Governance structure P35

Indicator No. Description Page 102-19 Delegating authority P36-P37

General Disclosures 102-20 Executive-level responsibility for economic environmental and social topics P11

Organization profile 102-21 Consulting stakeholders on economic environmental and social topics P13

102-1 Name of the organization P05

102-22 Composition of the highest governance body and its committees P36-P37

102-2 Activities brands products and services P05

102-23 Chair of the highest governance body P36

102-3 Location of headquarters P05

102-24 Nominating and selecting the highest governance body P36-P37

102-4 Location of operations P05

102-25 Conflicts of interest /

102-5 Ownership and legal form P05

102-26 Role of highest governance body in setting purpose

102-6 Markets served P05 values and strategy

P36-P37

102-27 Collective knowledge of the highest governance body P36-P37

102-7 Scale of the organization P05

102-28 Evaluating the highest governance body’s performance /

102-8 Information on employees and other workers P73

102-29 Identifying and managing economic environmental 102-9 Supply chain P69 and social impacts P13-P16

102-10 Significant changes to the organization and its supply P05-P06 102-30 Effectiveness of risk management process P39chain

102-31 Review of economic environmental and social topics P13-P16

102-11 Precautionary principles or approaches /

102-32 Highest governance body’s role in sustainability 102-12 External initiatives / reporting P13

102-13 Membership of associations / 102-33 Communicating critical concerns P13-P16

Strategy 102-34 Nature and total number of critical concerns P13-P16

102-14 Statement from senior decision-maker P03-P04 102-35 Remuneration policies P74

102-15 Key impacts risks and opportunities P19-P32 102-36 Process for determining remuneration P74

Ethics and integrity 102-37 Stakeholders’ involvement in remuneration /

102-16 Values principles standards and norms of behavior P05 102-38 Annual total compensation ratio /

102-17 Mechanisms for advice and concerns about ethics P40-P41 102-39 Percentage increase in annual total compensation ratio /

91 922022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Appendix

Indicator No. Description Page Indicator No. Description Page

Stakeholder engagement Economic Performance

102-40 List of stakeholder groups P12 201-1 Direct economic value generated and distributed P07

102-41 Collective bargaining agreements / 201-2 Financial implications and other risks and opportunities due to climate change P19-P32

102-42 Identifying and selecting stakeholders P13

201-3 Defined benefit plan obligations and other retirement plans P74

102-43 Approach to stakeholder engagement P13

201-4 Ratios of standard entry level wage by gender compared to local minimum wage /

102-44 Key topics and concerns raised P13-P14

Market Presence

Reporting practice

202-1 Ratios of standard entry level wage by gender /

102-45 Entities included in the consolidated financial

compared to local minimum wage

statements P01

202-2 Proportion of senior management hired from the local

102-46 Defining report content and topic Boundaries P01 community

/

Indirect Economic Impacts

102-47 List of material topics P16

203-1 Infrastructure investments and services supported P05

102-48 Restatements of information P01

203-2 Significant indirect economic impacts P05

102-49 Changes in reporting P01

Procurement Practices

102-50 Reporting period P01

204-1 Proportion of spending on local suppliers P70

102-51 Date of most recent report P01

Anti-corruption

102-52 Reporting cycle P01

102-53 Contact point for questions regarding the report P02 205-1 Operations assessed for risks related to corruption P40-P41

Claims of reporting in accordance with the GRI 205-2 Communication and training about anti-corruption 102-54 Standards P01 policies and procedures

P40-P41

102-55 GRI content index P91-P98 205-3 Confirmed incidents of corruption and actions taken /

102-56 External assurance / Anti-competitive Behavior

206-1 Legal actions for anti-competitive behavior anti-trust Special Disclosures and monopoly practices /

Management Approach Materials

103-1 Explanation of the material topic and its Boundary P13-P16 301-1 Materials used by weight or volume /

103-2 The management approach and its components P13-P16 301-2 Recycled input materials used /

103-3 Evaluation of the management approach P13-P16 301-3 Reclaimed products and their packaging materials P60

93 942022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Appendix

Indicator No. Description Page Indicator No. Description Page

Energy Effluents and Waste

302-1 Energy consumption within the organization P57-P58 306-1 Water discharge by quality and destination P53-P54

302-2 Energy consumption outside of the organization / 306-2 Waste by type and disposal method P56

302-3 Energy intensity P57-P58 306-3 Significant spills /

302-4 Reduction of energy consumption P57-P58 306-4 Transport of hazardous waste /

302-5 Reduction in energy requirements of products and Water bodies affected by water discharges and/or services P57-P58 306-5 runoff /

Water Environmental Compliance

303-1 Water withdrawal by source P59-P60 307-1 Non-compliance with environmental laws and regulations /

303-2 Water sources significantly affected by withdrawal of water / Supplier Environmental Assessment

303-3 Water recycled and reused P59-P60 308-1 New suppliers that were screened using environmental criteria P69

Biodiversity

308-2 Negative environmental impacts in the supply chain P69

Operational sites owned leased managed in or and actions taken

304-1 adjacent to protected areas and areas of high /

biodiversity value outside protected areas Employment

304-2 Significant impacts of activities products and services / 401-1 New employee hires and employee turnover /on biodiversity

Benefits provided to full-time employees that are not

304-3 Habitats protected or restored / 401-2 provided to temporary or part-time employees P74

304-4 IUCN Red List species and national conservation list 401-3 Parental leave /species with habitats in areas affected by operations /

Labor/Management Relations

Emissions

402-1 Minimum notice periods regarding operational changes /

305-1 Direct (Scope 1) GHG emissions /

Occupational Health and Safety

305-2 Energy indirect (Scope 2) GHG emissions P52

403-1 Occupational health and safety management system /

305-3 Other indirect (Scope 3) GHG emissions /

305-4 GHG emissions intensity P52 403-2

Hazard identification risk assessment and incident

investigation P85-P86

305-5 Reduction of GHG emissions P52 403-3 Occupational health services P85-P86

305-6 Emissions of ozone-depleting substances (ODS) / 403-4 Worker participation consultation and communication on occupational health and safety P85-P86

305-7 Nitrogen oxides (NOx) sulfur oxides (SOx) and other significant air emissions P55 403-5 Worker training on occupational health and safety P85-P86

95 962022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Appendix

Indicator No. Description Page Indicator No. Description Page

403-6 Promotion of worker health P85-P86 Human Rights Assessment

403-7 Prevention and mitigation of occupational health and Operations that have been subject to human rights safety impacts directly linked by business relationships P85-P86 412-1 reviews or impact assessments /

403-8 Workers covered by an occupational health and safety Employee training on human rights policies or management system P85-P86 412-2 procedures /

403-9 Work-related injuries P85-P86 Significant investment agreements and contracts that

412-3 include human rights clauses or that underwent human P69

403-10 Work-related ill health P85-P86 rights screening

Local Communities

Training and Education

Operations with local community engagement impact

404-1 Average hours of training per year per employee P77-P82 413-1 assessments and development programs /

404-2 Programs for upgrading employee skills and programs 413-2

Operations with significant actual and potential /

of transition assistance programs P77-P82 negative impacts on local communities

404-3 Percentage of employees receiving regular Supplier Social Assessmentperformance and career development reviews P77-P82

414-1 New suppliers that were screened using social criteria P69

Diversity and Equal Opportunity

Negative social impacts in the supply chain and actions

405-1 Diversity of governance bodies and employees P73 414-2 taken /

405-2 Ratio of basic salary and remuneration of women to / Public Policiesmen

415-1 Political contributions P72

Non-discrimination

Customer Health and Safety

406-1 Incidents of discrimination and corrective actions taken /

Assessment of the health and safety impacts of

Freedom of Association and Collective Bargaining 416-1 product and service categories P68

407-1 Operations and suppliers in which the freedom of 416-2

Incidents of non-compliance concerning the health and /

association and collective bargaining may be at risk / safety impacts of products and services

Child Labor Marketing and Labeling

408-1 Operations and suppliers at significant risk for incidents 417-1

Requirements for product and service information and

/ labeling P68of child labor

Forced or Compulsory Labor 417-2 Incidents of non-compliance concerning product and service information and labeling /

409-1 Operations and suppliers at significant risk for incidents / 417-3 Incidents of non-compliance concerning marketing of forced or compulsory labor communications /

Security Practices Customer Privacy

410-1 Security personnel trained in human rights policies or / 418-1 Substantiated complaints concerning breaches of procedures customer privacy and losses of customer data /

Rights of Indigenous People Socioeconomic Compliance

411-1 Incidents of violations involving rights of indigenous / 419-1 Non-compliance with laws and regulations in the social peoples and economic areas /

97 982022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Appendix

Reference Table of HKEX ESG Reporting Guide Indicator No. Description Page

Aspect A4: Climate Change

Indicator No. Description Page

General Disclosure Policies on identification and mitigation of significant climate-related issues which have impacted and those which may impact the issuer. P49-P51

Environmental (Comply or explain) Description of the significant climate-related issues which have impacted

A4.1 and those which may impact the issuer and the actions taken to manage P49-P51

Aspect A1: Emissions them.Information on: Social (recommended disclosure)

(a) the policies; and

Aspect B1: Employment and Labour Practices

General Disclosure (b) compliance with relevant laws and regulations that have a significant P47-P50

impact on the issuer relating to air and greenhouse gas emissions Information on:

discharges into water and land and generation of hazardous and non- (a) the policies; and

hazardous waste.General Disclosure (b) compliance with relevant laws and regulations that have a significant P73-P74

A1.1 The types of emissions and respective emissions data. P52-P56 impact on the issuer relating to compensation and dismissal recruitment

and promotion working hours rest periods equal opportunity diversity

Direct (Scope 1) and energy indirect (Scope 2) greenhouse gas emissions anti-discrimination and other benefits and welfare.A1.2 (in tonnes) and where appropriate intensity (e.g. per unit of production P52 B1.1 Total workforce by gender employment type (for example full- or part-

volume per facility). time) age group and geographical region.P73-P74

A1.3 Total hazardous waste produced (in tonnes) and where appropriate

B1.2 Employee turnover rate by gender age group and geographical region. /

intensity (e.g. per unit of production volume per facility). P56

Aspect B2: Health and Safety

A1.4 Total non-hazardous waste produced (in tonnes) and where appropriate intensity (e.g. per unit of production volume per facility). P56 Information on:

(a) the policies; and

A1.5 Description of emissions targets) set and steps taken to achieve them. P52-P64 General Disclosure (b) compliance with relevant laws and regulations that have a significant P85-P86

A1.6 Description of how hazardous and non-hazardous wastes are handled and

impact on the issuer relating to providing a safe working environment and

a description of reduction target(s) set and steps taken to achieve them. P52-P64 protecting employees from occupational hazards.B2.1 Number and rate of work-related fatalities occurred in each of the past P86

Aspect A2: Use of Resources three years including the reporting year.B2.2 Lost days due to work injury P86

General Disclosure Policies on the efficient use of resources including energy water and other raw materials. P57-P64 B2.3 Description of occupational health and safety measures adopted and how

Direct and/or indirect energy consumption by type (e.g. electricity gasor they are implemented and monitored.P85-P86

A2.1 oil) in total (kWh in '000s) and intensity (e.g. per unit of productionvolume P57-P58 Aspect B3: Development and Training

per facility).Policies on improving employees’ knowledge and skills for discharging

A2.2 Water consumption in total and intensity (e.g. per unit of production

General Disclosure

P59-P60 duties at work. Description of training activities.P75-P79

volume per facility).The percentage of employees trained by gender and employee category

A2.3 Description of energy use efficiency target(s) set and steps taken to P57-P58、

B3.1 (e.g. senior management middle management). /

achieve them. P63-P64 The average training hours completed per employee by gender and

A2.4 Description of whether there is any issue in sourcing water that is fit for

B3.2 employee category. P78

purpose water efficiency target(s) set and steps taken to achieve them. P59-P60

Aspect B4: Labour Standards

A2.5 Total packaging material used for finished products (in tonnes) and if applicable with reference to per unit produced. P60 Information on:

(a) the policies; and

Aspect A3: Environment and Natural Resources General Disclosure P73(b) compliance with relevant laws and regulations that have a significant

General Disclosure Policies on minimising the issuer’s significant impacts on the environment

impact on the issuer relating to preventing child and forced labour.and natural resources. P45-P64 B4.1 Description of measures to review employment practices to avoid child and forced labour. P73

A3.1 Description of the significant impacts of activities on the environment and natural resources and the actions taken to manage them. P45-P64 B4.2 Description of steps taken to eliminate such practices when discovered. P73

99 1002022 SHANGHAI AIKO SOLAR ENERGY CO. LTD.ESG Report Appendix

Indicator No. Description Page Appendix II: Readers' Comments Sheet

Aspect B5: Supply Chain Management

General Disclosure Policies on managing environmental and social risks of the supply chain. P69-P70

Dear Readers

B5.1 Number of suppliers by geographical region. P70

Description of practices relating to engaging suppliers number of Thank you for reading this report. We value and look forward to hearing your feedback on this report. Your opinions and

B5.2 suppliers where the practices are being implemented and how they are P69

implemented and monitored. suggestions are an important basis for us to continuously improve the level of corporate ESG information disclosure and

promote corporate ESG management and practice. We welcome and sincerely thank you for your valuable comments!

B5.3 Description of practices used to identify environmental and social risks along the supply chain and how they are implemented and monitored. P69

Description of practices used to promote environmentally preferable

B5.4 products and services when selecting suppliers and how they are P69 1. Your overall assessment of our ESG performance is:

implemented and monitored.Aspect B6: Product Responsibility □ Excellent □ Good □ Average □ Poor □ Very poor

Information on:

2. Your overall assessment of this report is:

(a) the policies; and

General Disclosure (b) compliance with relevant laws and regulations that have a significant P67-P68 □ Excellent □ Good □ Average □ Poor □ Very poor

impact on the issuer relating to health and safety advertising labelling and

privacy matters relating to products and services provided and methods of

redress. 3. What do you think of our performance in communication with stakeholders?

B6.1 Percentage of total products sold or shipped subject to recalls for safety and health reasons. / □ Excellent □ Good □ Average □ Poor □ Very poor

B6.2 Number of products and service related complaints received and how they are dealt with. P68 4. What do you think of our performance in sustainable development?

B6.3 Description of practices relating to observing and protecting intellectual P23-P24 □ Excellent □ Good □ Average □ Poor Very poor property rights. □

B6.4 Description of quality assurance process and recall procedures. P68 5. What do you think of our performance in green development?

B6.5 Description of consumer data protection and privacy policies and how they are implemented and monitored. / □ Excellent □ Good □ Average □ Poor □ Very poor

Aspect B7: Anti-corruption

6. What do you think of our performance in digitalization?

Information on:

(a) the policies; and □ Excellent □ Good □ Average □ Poor □ Very poor

General Disclosure (b) compliance with relevant laws and regulations that have a significant P40-P41

impact on the issuer relating to bribery extortion fraud and money 7. What do you think of our performance in social contribution?

laundering.Number of concluded legal cases regarding corrupt practices brought □ Excellent □ Good □ Average □ Poor □ Very poor

B7.1 against the issuer or its employees during the reporting period and the /

outcomes of the cases. 8. What are your opinions and suggestions for our ESG performance and this report?

B7.2 Description of preventive measures and whistle-blowing procedures and how they are implemented and monitored. P40-P41

B7.3 Description of anti-corruption training provided to directors and staff. P41

Aspect B8: Community Investment

Policies on community engagement to understand the needs of the

General Disclosure communities where the issuer operates and to ensure its activities take P87-P88

into consideration the communities’ interests.B8.1 Focus areas of contribution (e.g. education environmental concerns labour needs health culture sport). P87-P88

B8.2 (e.g. money or time) to the focus area. x P87-P88

101102

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