2024
APPOTRONICS
CORPORATION LIMITED
Environmental Social and
Governance (ESG) Report
APPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 2025.7APPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 001 / 002
About this Report About This Report
Message from the
Chairman
Approaching This report is the 2024 Environmental Social and Governance (hereinafter Confirmation Explanation
Appotronics referred to as “ESG” ) report of Appotronics Corporation Limited (hereinafter
referred to as “Appotronics” “the Company” “we” “us” or “our” stock code The financial data in the Report is sourced from the 2024 annual report of
688007.SH). As the sixth consecutive non-financial information disclosure Appotronics while other data is provided through internal or manual com-
report published since the listing on the STAR Market this report system- pilation. In case of any discrepancies between the data in this Report and
Special Topic 1
atically presents the practical achievements of the Company and its sub- in the Company’ s annual report the data in the Company’ s annual report
sidiaries in the ESG field responding to the concerns of stakeholders. We shall prevail. The Chinese version of this Report has been reviewed by the
have always adhered to the concept of sustainable development actively Company’ s management and approved by the Board of Directors on April
Special Topic 2 practiced corporate social responsibility and promoted the high-quality 28 2025.development of the Company.Strategic Leadership Report Scope Access to the Report
with Good Governance This report is an annual report covering the period from January 1 2024 This report is the English version. In case of any discrepancies between the
to December 31 2024 (hereinafter referred to as the “reporting period” ). To English and the Chinese versions of this Report the Chinese version shall
Precision Management improve the report’ s completeness some contents hereof may extend to prevail. In response to the national call for carbon peaking and carbon
periods before and after the reporting period.for Sustainable Prosperity neutrality goals the Report is only available in electronic format. Please
visit the ESG page on the official website of Appotronics (www.appotron-
The report scope covers Appotronics and CINEAPPO Laser Cinema Technol- ics.com) or visit the Shanghai Stock Exchange (www.sse.com.cn) to view
Green Development for ogy (Beijing) Co. Ltd. (hereinafter referred to as “CINEAPPO”) and Formovie and download this Report.
(Chongqing) Innovative Technology Co. Ltd. (hereinafter referred to as
Ecological Co-prosperity
“Formovie” ) with the disclosure caliber consistent with the annual Finan- Our email for Appotronics’ ESG practices is csr@appotronics.com.cial Report. Unless otherwise specified the currency amounts mentioned in
New Quality Empowerment this Report are uniformly denominated in Renminbi (RMB). The report
We look forward to your comments and suggestions.for World Connection data and case studies are sourced from the Company’ s official docu-
ments internal statistics and summaries.Care for Employees to
Build the Future Together Basis for Preparation
This Report is mainly prepared mainly based on the Guidelines of Shanghai
Science Popularization Stock Exchange on Self-regulatory Supervision of Companies Listed on the
Together with Public Welfare STAR Market No. 13 – Preparation of Sustainability Report and the Sus-
tainability Reporting Standards from the Global Reporting Initiative (GRI
standards) while also referring to the United Nations Sustainable Develop-
Appendix ment Goals (SDGs) the Recommendations of the Task Force on Cli-
mate-related Financial Disclosures of the Task Force on Climate-related
Financial Disclosures (TCFD). and the Guidelines for Compiling Corporate
Social Responsibility Reports in China (CASS-ESG5.0).Contents 1.0 2.0 3.0
Strategic Leadership Precision Management Green Development
About this Report 001 with Good Gover- for Sustainable Pros- for Ecological
nance perity Co-prosperity
Message from the Chairman 003
ESG Management 049 Corporate Gover- 059 Addressing Climate 077
Approaching Appotronics 007
051 nance ChangeCommunication with
Stakeholders Integrity and Compli- 066 Green R&D and Inno- 081
Special Topic 1: 023
Analysis of Material 053 ance vation
Embracing AI Transformation
Topics Risk Control 067 Green Buildings 083
AI Innovation Integration 023 ESG Practices 055 Digital Construction 073 Green Operations 089
AI-driven Efficiency Enhancement 026
Special Topic 2: 029
Advancing High-Quality Development 4.0 5.0 6.0
through Technology Innovation
New Quality Empower- Care for Employees to Science Popularization
Innovation Achievements 029
ment for World Connec- Build the Future To- Together with Public
Intellectual Property Rights 037
tion gether Welfare
Industry Contribution 039
Cultural Value 044 Quality Management 093 Employee Rights and 119 Science Popularization 151
Interests Education
Responsible Marketing 103
Appendix 159 Employee Develop- 131 Social Welfare and Information Security 155110
ment International Commu-
GRI Standard Index Table 159 Responsible Supply 113 nicationCare for Employees 138
Chain
Readers’ Feedback 167 Biodiversity ActionsSafety and Health 157
Conflict Minerals 143115APPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 003 / 004
About this Report Message from the Chairman
Message from the Chairman
Approaching
As revealed in the Global Development Report 2024 the world is damental research sustaining robust momentum in original from multiple dimensions. For our customers we have built a
Appotronics
undergoing a “new period of turbulence and transformation” . innovation. robust quality system through several international certifications
On one hand the global landscape is evolving rapidly driven by such as ISO9001 and IATF 16949 and maintained zero incidents
At the same time our automotive optics business achieved a
Special Topic 1 a new wave of technological revolution and industrial transfor- in information security. We engage in face-to-face communica-
breakthrough surpassing RMB 600 million in annual revenue
mation. On the other hand geopolitical tensions persist with tion and interaction with customers to practice responsible mar-
from scratch. Two new cooperative vehicle models were manu-
frequent local conflicts and turmoil. keting through organizing activities agent training and partici-
factured in 2024 including the AITO M9 equipped with our
pating in industry forums and exhibitions. For our employees
Special Topic 2 Despite this volatility in the external environment Appotronics industry-first automobile-grade projection giant screen which
upholding the “people-oriented” principle we prioritize talent
remains steadfast in our commitment to sustainable develop- secured over 200000 firm orders within 12 months of launch.development and diversity with a 2024 workforce reaching
ment. Anchored in technological innovation we actively em- This translates to tens of thousands of consumers daily benefit-
1439 employees in which female employees accounted for
Strategic Leadership brace changes seeking common development with global part- ing from our innovations. Our automotive quality systems and
with Good Governance 34.61% while ethnic minorities accounted for 9.8%. We have
ners with an open and cooperative attitude. We strive to en- supply chain capabilities have been rapidly improved attaining
been honored as “Shenzhen Best Employer” and “Top 20hance human life experiences by leveraging semiconductor laser global top-tier OEM standards through the most rigorous auditsYouth-Friendly Employer Brands”.Precision Management technologies. by leading global automobile manufacturers.for Sustainable Prosperity For the community we take it upon ourselves to spread tech-
When entering the sixth consecutive year of publishing stand- In the field of environmental responsibility our ALPD technolo-
nology and bridge the technology and public understanding. As
alone ESG reports we have deepened our environmental social gy continues to drive low-carbon transitions. Up to now we
Green Development for a technology leader in the field of semiconductor lasers we
and governance initiatives while expanding the societal value of have helped cinema clients save approximately 682 million kWh
Ecological Co-prosperity open the Company’s showroom for free visits from social groups
corporate citizenship through diversified innovations. Recognition of electricity equivalent to reducing over 0.5868 million tons of
throughout the year attracting more than 8800 visits annually.such as the Wind ESG Grade A Rating Golden Bull Award ESG CO? emissions. This impact is growing as overseas adoption ex-
Particularly we have arranged special tours for over 940 adoles-
New Quality Empowerment Top 100 and ESG Golden Dawn Award have testified to our pands showcasing the practical contributions of this Chinese
cent visits dedicated to STEM education by designated persons
for World Connection long-term dedication to ESG excellence. In detail our key solution to global energy structure optimization.which aim to inspire the younger generation’ s desire to explore
achievements in the ESG field include:
In early 2025 we inaugurated our new headquarters building. photonics technology. We also strengthen global ties by hosting
Care for Employees to
In the dimension of technology innovation the advent of the AI This building was designed and constructed under Shenzhen international student delegations engaging in sustainability dia-
Build the Future Together
era has unlocked vast application potential for semiconductor Green Building Standards in every detail embodied by low-ener- logues with former UNESCO Director-General and donating
laser technologies. We actively embrace AI advancements. Our gy consumption design sponge city system soil conservation equipment to Portugal’ s Volunteer Alliance. These activities have
Science Popularization AR glasses optical modules that align with the “AI + AR” trend projects and biodiversity protection etc. The inauguration of demonstrated our global responsibility as a Chinese technology
Together with Public Welfare will help our partners accelerate their time to bring products to the new headquarters building not only initiates our journey to a company.market. Large language models like DeepSeek now enhance bright future but also symbolizes our unwavering green develop-
For corporate governance our governance framework composed
daily operations empowering the employees in research and ment ethos.Appendix of “the general meeting of shareholders board of directorsdevelopment and intellectual property management. Over theIn fulfilling our social responsibilities we strive to create value board of supervisors and management” ensures our continuous
past three years we have invested over RMB 100 million in fun-APPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 005 / 006
About this Report
Message from the Chairman
Approaching
improvement in governance efficiency through a synergistic mechanism with clear powers and responsibilities resulted in honors of the
Appotronics
“Golden Bull Award-Golden Information Disclosure Award” by China Securities Journal and the “Best Board of Directors” for four consecu-
tive years. In 2024 the Company completed three share repurchase programs investing RMB 119 million in total and canceling 5.8425 mil-
Special Topic 1 lion shares in the repurchase account to reward investors who trust us with real money.Despite 2025’s turbulent outset we remain confident that technology will continue serving humanity’s pursuit of a better future.Special Topic 2
Strategic Leadership
with Good Governance
Precision Management
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity LI Yi
April 2025
New Quality Empowerment LI Yi
for World Connection
Chairman and CEO of Appotronics
Care for Employees to
Build the Future Together "Despite 2025’ s turbulent outset we
remain confident that technology will
Science Popularization continue serving humanity’s pursuit of
Together with Public Welfare a better future."
AppendixAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 007 / 008
About this Report Approaching Appotronics
Message from the
Chairman
Approaching Appotronics 01.Company Profile
Special Topic 1
Company Profile
Appotronics Corporation Limited (stock code: 688007.SH) established in 2006 is a global leading supplier of original technology and core patents for laser core
Special Topic 2
components. The Company stands as one of the first companies listed on the STAR Market. Meanwhile it is also the first stock in Guangdong Province on the
STAR Market and the first stock in the global laser display industry.Strategic Leadership In 2007 Appotronics invented the ALPD semiconductor laser light source technology a groundbreaking development in the display field that overcame signifi-
with Good Governance
cant application bottlenecks in core laser display core components and imaging solutions. As this technology has become the mainstream approach within the
industry it has been extensively applied in various sectors including automotive cinema specialized displays and household applications. Notably due to rapid
Precision Management advancements of this technology in automotive optics we have earned partnerships with numerous internationally renowned automobile manufacturers. At the
for Sustainable Prosperity same time by seamlessly integrating our laser technology with cutting-edge developments in human-computer interaction smart recognition the Internet of
Things cloud platforms big data etc. the Company has proactively established strategic layouts in emerging fields such as artificial intelligence (AI) aug-
Green Development for mented reality (AR) and robotics. This forward-thinking approach has led to in-depth collaborations with numerous globally recognized brands
Ecological Co-prosperity and institutions.Furthermore the Company has taken the lead in undertaking the National Key Research and Development Programs
New Quality Empowerment collaborating with 12 research institutions including the Chinese Academy of Sciences Beijing Institute of
for World Connection Technology Sun Yat-Sen University Zhejiang University to promote the advancement of na-
tional laser display technology and jointly drive the development of the laser indus-
Care for Employees to try so as to build a robust laser industry ecosystem.Build the Future Together
Up to now the Company has been identified as a na-
tional high-tech enterprise and a national intellectual
Science Popularization property rights demonstration enterprise. In addition the
Together with Public Welfare Company has also won many honors such as the China
Patent Excellence Award National Enterprise Standard
“Forerunner” and Golden Bull Science and Technology
Appendix
Innovation Award.Upholding the mission of “New Light New Life” Appo-
tronics is committed to illuminating the world through
laser light source!APPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 009 / 010
Development History
About this Report
2023
Message from the Provided core components to BMW concept vehicles that were first equipped with
Chairman innovative four-window fusion display technology around the world at CES 2023.Launched the world’ s first automobile-grade color laser headlight at the Shanghai
Approaching Appotronics
International Automobile Industry Exhibition.
2021
Released the first automobile-grade projection
Special Topic 1
giant screen solution in the industry which was
Launched the first unveiled by AITO M9 equipped with core
2018 laser display proto- components.
Special Topic 2 type with Airbus in
2015 the civi l aviation
Launched C5 projectors field globally. Achieved a breakthrough in the automotive optics
Strategic Leadership the first DCI-compliant business surpassing RMB 600 million in annual rev-
with Good Governance Installed the world’ s laser digital cinema pro- enue from scratch.first ALPD laser pro- jector in China.
2013 Launched the world’ s first All-in-One laser smart jector in Shenzhen
Precision Management Passed the IATF international auto- headlight at the Beijing International Automotive which has been run-
for Sustainable Prosperity
ning stably ever since. motive regulations certification.Exhibition.
2006
Launched the world’ s Grew into a supplier of domestic and The designated collaborative automobile models
Green Development for first 100-inch laser TV overseas leading automobile manu- STELATO S9 and smart #5 were launched into the
Ecological Co-prosperity Debuted on the STAR Dr. LI Yi the founder of with LG. facturers. market in succession and the smart #5 model was
Market and became
Appotronics also the Chair- the industry’ s first to be equipped with an auto-
one of the compa- Released the world’ s first AR optical
man and CEO of Appotron-
New Quality Empowerment motive-grade panchromatic laser projector. After Launched the world’ s nies first listed on the module with a PPI exceeding 10000.for World Connection ics established Appotronics one year on the market AITO M9 has surpassed
first laser TV under STAR Market.in Shenzhen. Provided semiconductor laser core cumulative orders of 200000 units.RMB 1 0 000 w i t h
Established CINEAPPO with components for Midea’ s household
Care for Employees to Xiaomi. The AR glasses optical modules have been deliv-
China Film Equipment Co. service robots.Build the Future Together ered in small batches to customers for sampling.Ltd. for the independent
innovation of cinema 2024
Invented the world’ s
Science Popularization projection technology in
Together with Public Welfare first ALPD semicon-
China.ductor laser light source 2022
technology. 2019
Appendix 2017
2014
2007APPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 011 / 012
2024 ESG Highlighted Performance
About this Report
Message from the Honors in the ESG Fields
Chairman
Approaching Appotronics
Special Topic 1
Special Topic 2
Wind ESG Rating A
Strategic Leadership
with Good Governance
Precision Management
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity
New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together
Science Popularization
Together with Public Welfare
2024 ESG Innovative Practice Case Award Golden Bull Award ESG Top 100 ESG Golden Dawn Award and the Best
Technology Innovation Breakthrough Award
of Snowball Annual Golden List by China Securities Journal
Appendix by Weekly on StocksAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 013 / 014
Key Data Indicators Cumulative patent Total training duration
About this Report applications and authorized
patents worldwide
Unit: RMB 2993 patents 16824 hours
Message from the
Chairman
Operating income Operating income from Safety hazard Responsible procurement
Approaching Appotronics in 2024 automotive optics elimination rate
operations
100%100%
Special Topic 1 2419 million 638 million
Public science popularization
reception tour
Special Topic 2
8812 visits
Strategic Leadership
with Good Governance
Precision Management Social indicators Environmental indicators
for Sustainable Prosperity
Unit: RMB/Person
Green Development for
of e fema
Ecological Co-prosperity ion mp of le Reduced carbon dioxide Saved electricity forrt abor co l n al empl e l n t o emissions for cinema cinema partnersTotal number g Number of o partners in total in total
of employees female employees
New Quality Empowerment 1001439 498 34.61 586800 tons 682million kWhfor World Connection % %
Person Person
Care for Employees to Compliance rate of emission
Build the Future Together indicators in the production process
of R&D f R&D n im p o nv 100%
Science Popularization o l e p n eratinR&D a lo p got R&D o
Together with Public Welfare personnel investments
50535.09%248
10.24
%
Appendix Person million
Propo Pr roto ti sign
p
in ot
Propor Proport
to to
t
t io to ioal t
plo
yees ments
s stm ee e c
ome
y in
es nnel e o
oy cts rs s
tra e ye
eAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 015 / 016
Governance indicators
About this Report
Message from the
Chairman
Approaching Appotronics
Special Topic 1
417691033
Special Topic 2
Time Time Time Time Time Time Time
Strategic Leadership
Number of general Number of meetings held Number of meetings Number of meetings Number of meetings held Number of meetings Number of meetings
with Good Governance meetings of shareholders by the Board of Directors held by the Board of held by the Audit by the Strategic and held by the Compensation held by the Nomination
Supervisors Committee ESG Committee and Evaluation Committee Committee
Precision Management
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity
New Quality Empowerment
for World Connection
Care for Employees to 3 4 7 71.43 28.57 3 3
Build the Future Together
Science Popularization Time Time Person % % Person Person
Together with Public Welfare
Number of special Proportion of male Proportion of femaleNumber of performance Number of members of Number of independent Number of members of
meetings held by directors on the directors on thebriefings the Board of Directors directors the Board of Supervisors
independent directors Board of Directors Board of Directors
AppendixAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 017 / 018
Major Honors in 2024
About this Report
Message from the
Chairman Serial number Date Issuing Authority Award Name
“Innovation Award for Computer Peripherals and Accessories”
Approaching Appotronics 1 2024.01 CES 2024 (Overseas customer products equipped with ALPD 5.0)
Shenzhen B2B Display System
2 2024.01 Industry Association 2023 Annual Benchmark Award for Laser Projection Display ApplicationsSpecial Topic 1
Appotronics Engineering Dual-color Laser High-brightness T-pro Large Venue
Projector - Second Prize of Technology Innovation Award
Special Topic 2 3 2024.03 Shenzhen Illuminating Engineering Society
Indirect Cooling Tower Illumination and Performance Project of Montai Dongsheng
Phase II 2×660MW Cogeneration Project - Second Prize in Engineering
Strategic Leadership
with Good Governance Shenzhen Performance Excellence
4 2024.03 Management Foundation 2023 Outstanding Innovative Organization (Enterprise)
Precision Management
for Sustainable Prosperity 5 2024.04 Huawei 2023 Huawei Smart Cockpit Distinguished Partner
Green Development for Best Product Award
Appotronics Dual-color Laser High-brightness T-pro Large Venue Series Projector
Ecological Co-prosperity
Best Design Award-Planet Imagination - Blue Tears-“Harmonious Music from Khotan” Full-Scale
Immersive Performance Art with Multi-Sensory Interaction in Yotkan Ancient City in Hetian Xinji-
New Quality Empowerment ang“Mountain and Sea Map Shrouded in Mist” Guided Night Tour in Pingtan General Mountain
for World Connection 6 2024.06 Alighting Award
Excellent Engineering Award-Indirect Cooling Tower Illumination and Performance Project of
Montai Dongsheng Phase II 2×660MW Cogeneration Project
Care for Employees to
Build the Future Together
Honor Partner Brand
Science Popularization
Together with Public Welfare Best Tourism Performance: Planet Imagination - Blue Tears
7 2024.06 Guangdong Performance Industry Association
Best Performance Equipment Brand: Appotronics
Appendix
8 2024.07 China Fund News A-share New Quality Productive Forces Value Award of Yinghua AwardAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 019 / 020
Major Honors in 2024
About this Report
Message from the
Chairman Serial number Date Issuing Authority Award Name
Department of Industry and Information “Innovation Award for Computer Peripherals and Accessories”
Approaching Appotronics 9 2024.08 Technology of Guangdong Province (Overseas customer products equipped with ALPD 5.0)
10 2024.09 Wind ESG Grade A Rating
Special Topic 1
11 2024.10 China Securities Journal Golden Bull Award- Golden Information Disclosure Award
Special Topic 2
12 2024.11 Securities Times
LI Yi
Annual Sci-Tech Pioneer of Chinese Listed Companies
Strategic Leadership
with Good Governance ESG Golden Dawn Award
13 2024.11 Weekly on Stocks Best Technology Innovation Breakthrough Award
Precision Management Firefly Illumination Awards - 2024 Product Design Supreme Award
for Sustainable Prosperity 14 2024.12 China Illuminating Engineering Society Appotronics Dual-color Laser High-brightness T-pro Large Venue Series Projector
Second Prize in the Landscape Lighting Special (Product Category) of the China
Green Development for 15 2024.12 China Association of Lighting Industry International Lighting Design Awards
Ecological Co-prosperity Appotronics Dual-color Laser High-brightness T-pro Large Venue Series Projector
National Business Daily
162024.12
New Quality Empowerment 13th China Listed Companies Summit
Best Board of Directors Award for Listed Companies
for World Connection
China Securities Journal
17 2024.12 Golden Bull Award ESG Top 100
2nd Guoxin Cup - ESG Golden Bull Award
Care for Employees to
Build the Future Together Shenzhen Intelligent Equipment Industry Association Red Sail Award
18 2024.12 Shenzhen Electronic Equipment Industry Association Annual Top 100 Enterprises of New Quality Productive Forces
Science Popularization Guangdong Times Media Group
Together with Public Welfare 19 2024.12 The 17th Times Marketing Gala Annual Brand Value Communication
20 2024.12 Xueqiu 2024 ESG Innovative Practice Case AwardAppendix
Shenzhen Small and Medium-sized Specialized Refined Distinctive and Innovative Small and
21 2024.12 Enterprises Service Bureau Medium-sized Enterprises (SMEs) of ShenzhenAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 021 / 022
About this Report
Special Topic 1
Message from the
Chairman
Approaching Appotronics
Special Topic 1
Special Topic 2
Strategic Leadership
with Good Governance
Precision Management
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity
New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together
Science Popularization
Together with Public Welfare
Appendix Embracing AI TransformationAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 023 / 024
About this Report Special Topic 1: Embracing AI Transformation
Message from the
Chairman
01.AI Innovation Integration
Approaching Appotronics
Appotronics prioritizes R&D investments in AI technologies
driving AI innovation in semiconductor laser applications. At
Special Topic 1
the beginning of 2025 during the Consumer Electronics
Show in the United States we unveiled a self-developed
Special Topic 2 panchromatic AR glasses light engine display solution with
ultra-compact size and effective cost. This kind of
ultra-compact panchromatic AR glasses light engine with a
Strategic Leadership volume of only 0.8cc (cubic centimeters) which is smaller
with Good Governance than common Bluetooth headsets has perfectly met the
demand for lightweight AR glasses. It not only features a
200:1 high contrast and 720P high resolution but also has
Precision Management
ultra-low power consumption and panchromatic display
for Sustainable Prosperity
availability all of which are at industry-leading levels. More
importantly its low cost and high cost-performance ratio
Green Development for will help partner manufacturers accelerate the launch of AR
Ecological Co-prosperity glasses products to the mass market.New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together
Science Popularization
Together with Public Welfare
Appendix
The Company’s self-developed AR glasses light engine moduleAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 025 / 026
The Company has provided small batches of module prototypes to upstream and downstream The “projection + AI” technology independently developed by the Company’ s R&D team en-
About this Report companies in the AR glasses industry chain such as the A-share listed Huaqin Technology and the ables the large venue laser projector to be ready for use immediately upon startup. This system
Hong Kong-listed Sunny Optical Technology Group for project research and product pre-develop- can automatically collect complex building surface data and perform calculations supporting
ment. multiple devices to work collaboratively and automatically reconstructing images with seamless
Message from the concatenation in order to accurately align with the edges and corners of buildings. AI generates
AI technology is not an isolated technical tool; it can also be integrated with business operations
Chairman images based on the scene’ s geometric features and superimposes them onto the model
to drive the creation of entirely new user experiences. With the continued surge in China’ s cultur-
where sensors track the audience’ s position in real time to avoid glare and enhance immersion.al tourism enthusiasm the demand for large venue laser projection is constantly rising. However
With this technology the Company will significantly reduce the pre-installation costs while per-
Approaching Appotronics in practical applications the team generally faces some challenges. As cultural tourism architec- fectly presenting the immersive 3D effect by optimizing the immersive projection picture quality
tures vary greatly in shape the projection surfaces are mostly irregular. When multiple large venue
with reduced color edges. In the future this technology will be widely applied in fields such as
laser projectors need to be combined for display it is required for precise matching of the projec-
cultural tourism night-time lighting stage art and exhibitions.Special Topic 1 tion surfaces which often consumes a lot of manpower for detailed adjustments severely
affecting the efficiency of project implementation.Special Topic 2 02.AI-driven Efficiency
Enhancement
Strategic Leadership
with Good Governance
The application of AI technology within enterprises can effectively improve employees’ work
efficiency and help them adapt more quickly to the rapidly changing market environment
Precision Management thereby significantly enhancing the overall competitiveness of the Company.for Sustainable Prosperity
Appotronics’ self-developed smart systems which have incorporated large AI models have pro-
vided positive assistance for employees’ daily office work. For example as a company listed on
Green Development for
the STAR Market the Company is required to submit different patent application documents
Ecological Co-prosperity
every year for which some technical personnel should spend a significant amount of time writ-
ing patent documents. To solve this problem the Company has independently developed the
New Quality Empowerment “AI R&D Assistant” which integrates the DeepSeek large model to provide intelligent support
for World Connection for technical personnel in patent searches and material writing stages.This “AI R&D Assistant” boasts three functions: technical intelligence mining experimental simu-
Care for Employees to
Build the Future Together lation optimization and patent automation. Through large models like DeepSeek it can per-
form real-time searches of global papers on optics and laser technology to generate abstracts
and trend reports and automatically associate the Company’ s historical R&D data to recom-
Science Popularization mend potential R&D directions. Moreover its parameter tuning system based on reinforcement
Together with Public Welfare
learning can recommend optical path design solutions and material combinations through AI
after inputting goals. This “AI R&D Assistant” can also automatically generate patent drafts
Appendix The “projection + AI” technology achieved rapid automatic completion of
based on experimental data to avoid infringement risks. In the future AI technology will play a
splicing images. By using sensors broader role in improving the Company’ s internal R&D and operational efficiency while reducing
the blocking shadow of the “little bear” can be eliminated.costs thereby achieving good cost reduction and efficiency enhancement.APPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 027 / 028
About this Report
Special Topic 2
Message from the
Chairman
Approaching Appotronics
Special Topic 1
Special Topic 2
Strategic Leadership
with Good Governance
Precision Management
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity
New Quality Empowerment
for World Connection Advancing High-Quality
Care for Employees to
Build the Future Together Development through
Science Popularization
Together with Public Welfare
Appendix Technology InnovationAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 029 / 030
About this Report Special Topic 2: Advancing High-Quality
Message from the Development through Technology Innovation
Chairman
Approaching Appotronics
01.Innovation Achievements cumulated 10 automotive business designated points with designated products including automotive-grade
Special Topic 1 giant screens laser projection lights vehicle lamp 问界 M9
In the new era of high-quality development technology innovation is not only the core driving modules and dynamic color pixel lights etc. which 搭载业界首个车规级投影巨幕
force for enterprises to break through bottlenecks and achieve leapfrog development but also a have demonstrated significant head start advantages 由光峰科技供应核心器件
Special Topic 2
key engine for promoting industrial upgrade and shaping competitive advantages. as meeting the diverse needs of automotive custom- 累计大定突破
ers.Strategic Leadership As one of the first companies listed on the STAR Market Appotronics always places technology
innovation at the core of its development regarding it as the soul of driving forward. We empha- By December 2024 AITO M9 the panoramic smart with Good Governance 200000
size technology innovation throughout the entire chain process that covers fundamental research flagship SUV equipped with the Company’ s designat-
new application incubation intelligent manufacturing and societal implementation to continuous- ed products has sold over 200000 units cumulatively
Precision Management
ly strengthen and expand core technologies so as to empower talent teams across the entire within 1 year after its launch firmly maintaining its po-
for Sustainable Prosperity
chain. We also maintain high investment in research and development to improve the intellectual sition as the sales champion among automobiles
property rights system. With these initiatives we could own a systematic innovation ability that priced over RMB 500000. The AITO M9 features the
Green Development for actively disseminates the whole industry chain. In 2024 we invested RMB 248 million in our industry’ s first automobile-grade giant screen projec-
Ecological Co-prosperity research and development. tion solution provided by Appotronics characterized Over 200000 firm orders for
by large size low motion sickness and strong vibra- the designated automobile
tion resistance. model AITO M9 cumulatively
New Quality Empowerment
for World Connection Achievements Commercialization
Soaring revenue from automobile-grade projection giant
Care for Employees to screen system business with expansion into new application
Build the Future Together
scenarios of panchromatic laser projection lights
Science Popularization With the successful creation of the industry’ s first automobile-grade projection giant screen
Together with Public Welfare
system benchmark solution the Company’ s automotive optics business has rapidly increased
achieving a breakthrough in its first-year revenue from 0 to over RMB 600 million. In 2024 the
Company continued to make great efforts on the application of the automobile-grade projection
Appendix
giant screens and expand such application into outdoor lighting scenarios by launching innovative
solutions such as the All-in-One laser smart headlight. By the end of 2024 the Company has ac-APPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 031 / 032
In addition STELATO S9 a panoramic smart flagship limousine model that was launched in In October 2024 smart #5 a luxury five-seat SUV under the smart brand was officially launched.About this Report August 2024 has sold over 8000 units cumulatively within 20 days after its launch. The industry’s The industry’ s first native automotive-grade panchromatic outdoor laser projector which features
first automobile-grade projection giant screen system for the limousine model which features in in the smart #5 is provided by Appotronics. With a brightness of up to 2000 lumens and a max-
STELATO S9 is also provided by Appotronics. This milestone underscores the multi-model adapt- imum projection of 233 inches of ultra-high-definition images this laser projector adopted by
Message from the ability of our innovation achievements and further solidifies our R&D commercialization capabili- smart #5 can achieve a 1080P display effect and is capable of meeting the entertainment needs
Chairman ties. in outdoor camping scenes.Approaching Appotronics
Special Topic 1
Special Topic 2
Strategic Leadership
with Good Governance
Precision Management
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity
smart #5 features with the industry’s first native
automotive-grade panchromatic outdoor laser projector
New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together STELATO S9 features with the industry-first automobile-grade
projection giant screen system for the limousine model
Science Popularization
Together with Public Welfare
AppendixAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 033 / 034
At the 2024 Beijing International Automotive Exhibition Appotronics launched the world’ s first ALPD 5.0 Pro Super Panchromatic Laser Technology
About this Report All-in-One laser smart headlight integrating multiple functions such as high beam assistance ADB Thanks to the remarkable achievements of ALPD 5.0 technology in industrial application the
adaptive high beam lighting color temperature adaptive front lighting fog light and color DLP
Company by taking advantage of this success officially released the latest generation of the
display into a single small-sized lamp module. The All-in-One laser smart headlight which has
“ALPD 5.0 Pro Next-Generation Light Source Architecture Platform” in October 2024.Message from the covered two major directions of “precise lighting” and “precise display” and is being continuously
Chairman updated will inject new vitality into the smart transformation and innovative development of the The ALPD 5.0 Pro technology is characterized by greater brightness higher light efficiency and
automotive industry. stronger reliability. With this technology we are striving to create a high-quality application plat-
form for the projection industry. In terms of brightness the value of brightness is increased by
Approaching Appotronics over 30%. In terms of contrast ratio we have developed more innovative applications for the
ALPD 5.0 Pro technology such as integrating optical solutions for high contrast and optimizing
optical path design to achieve more refined beam control. Through these initiatives we are able
Special Topic 1 to enhance the depth and layering of images while maintaining high brightness. The newly added
dynamic aperture technology can adjust the aperture size in real time according to the content
of the image further enhancing the expressive power of dark details and the overall contrast. We
Special Topic 2 also introduce a color management system for ALPD 5.0 Pro to ensure color accuracy and con-
sistency through accurate color calibration so as to provide users with a more realistic and vivid
Strategic Leadership visual experience.with Good Governance
Precision Management
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity
New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together
Science Popularization
Together with Public Welfare
Appotronics’ Release Event at the 2024 Beijing
International Automotive Exhibition Appotronics’ ALPD 5.0 Pro Super Panchromatic Laser Technology
AppendixAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 035 / 036
Launching the VLED LED cinema screen product family into R&D Investment
About this Report the market
In 2024 the Company launched the VLED LED cinema screen product family with its full range R&D Investment functions as the source of technology innovation. The Company has always placed
of products including the 10-meter model with 2K resolution and the 10-meter 14-meter great emphasis on research and development maintaining a high level of investment to provide
Message from the
16-meter and 20-meter models with 4K resolution all of which were inspected by DCI and do- solid support for technological innovation and help the Company maintain its leading technical ca-
Chairman
mestic authoritative institutions. The VLED LED screen achieved 230% higher brightness com- pabilities. In 2024 the Company invested RMB 248 million in research and development account-
pared to conventional screens coupled with ultra-high contrast ratio and enhanced refresh ing for 10.24% of our revenue.Approaching Appotronics rate and a 160 ° wide viewing angle. It can deliver significantly clearer visual experiences for au- The Company boasts a robust R&D team with the core units led by prominent talents in the inter-
diences.national semiconductor laser and automotive optics fields. We have successfully attracted numer-
As of now 34 VLED LED cinema screens have been installed across 30 cities in China with the ous R&D professionals who graduated from renowned universities both domestically and overseas.Special Topic 1 new installations securing an industry-leading market share. These newly installed screens not These experts span multiple disciplines including optics electronics materials science physics me-
only guarantee high-quality projection but also unlock diversified operational possibilities for cin- chanical design and precision manufacturing. Depending on the R&D team we have formed an
emas. interdisciplinary and composite innovation and R&D system which provides strong intellectual sup-
Special Topic 2 port for the Company’ s technological breakthroughs and product innovation. As of December 31
2024 the Company has employed 505 R&D personnel accounting for 35.09% of the total indirect
employees. Among them 26.14% of R&D personnel held master’s or doctoral degrees.Strategic Leadership
with Good Governance
Precision Management R&D investments Total number of personnel
in the R&D system
for Sustainable Prosperity
RMB248 million 505 Person
Green Development for
Ecological Co-prosperity
Proportion of R&D Proportion of R&D
New Quality Empowerment staff to total employees personnelwith master’s
for World Connection or doctoral degrees
Care for Employees to 35.09% 26.14%
Build the Future Together
Science Popularization
Together with Public Welfare
The first 4K 14-meter VLED LED theater of Henan
Province has been built in Zhengzhou City
AppendixAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 037 / 038
02.Intellectual Property Rights
About this Report
Intellectual property rights are the cornerstone of a company’ s innovation and core competitiveness. Protecting intellectual property rights equates to safeguarding innovation. As the original inventor of ALPD semi-
Message from the conductor laser light source technology Appotronics fully recognizes the critical role of intellectual property rights protection in securing R&D achievements advancing technological progress and maintaining global
Chairman competitive advantages.In 2024 the Company is deeply committed to integrating its intellectual property rights management system with operational processes optimizing the full-cycle workflow encompassing search application mainte-
Approaching Appotronics nance utilization and tiered management. The Company encourages R&D personnel to propose high-quality patent applications and strengthens patent and trademark review and retrieval to strictly control applica-
tion quality. At the same time the Company carries out hierarchical classification management of patents and improves the patent subject database to promote the digitization of intellectual property rights. With
the realization of the electronization of the entire process we have formed an efficient and precise management system. In addition the Company continuously pays attention to new policies and regulations regard-
ing intellectual property rights and regularly conducts early warning to reduce intellectual property rights risks in the development process.Special Topic 1
By the end of 2024 the Company has filed a total of 2993 patent applications globally and owned a total of 2287 granted patents worldwide including 1189 invention patents.Special Topic 2
Case: Normalization of intellectual property training Case: Normalization of intellectual property training
Strategic Leadership
with Good Governance With great emphasis on intellectual property compliance construction Appotronics
conducts training for employees from time to time which covers patent trademark
Annual Key Honor: the 25th China Patent Excellence Award
copyright trade secret protection and fair competition etc. to achieve normalization.Precision Management
for Sustainable Prosperity In 2024 the Company provided intellectual property and trade secret training for new
employees patent proposal writing skills training for R&D personnel and trademark
usage regulation training for business personnel. All employees are required to strictly
Green Development for comply with laws and regulations and professional ethics in business activities and
Ecological Co-prosperity respect intellectual property rights in order to maintain a fair competition environ-
ment.New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together Announcement link of the China National Intellectual Property Administration official website:
https://www.cnipa.gov.cn/art/2024/12/23/art_394_196838.html
Science Popularization
Together with Public Welfare
Appendix
Providing intellectual property and trade secret training for new employeesAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 039 / 040
At the same time Appotronics continues to focus on innovation-driven empowerment centered
About this Report 03.Industry Contribution around its ALPD semiconductor laser source technology expanding upstream and downstream
industrial chains. Leveraging advanced and comprehensive production technologies and process-
Appotronics actively participates in industry summits forums and exhibitions to drive the indus- es the Company has achieved domestic and international leadership. In September 2024 Appo-Message from the try-university-research integration. Through technological innovation and resource integration we tronics was recognized as a “Single Champion Enterprise in the Manufacturing Industry of Guang-Chairman have driven industrial upgrading and participated in the formulation of industry standards achiev- dong Province” by the Department of Industry and Information Technology of Guangdong Prov-
ing significant results in multiple fields while actively fulfilling social responsibilities. We are making ince which marked our contributions to the high-quality advancement of the manufacturing
contributions to the vigorous development of the semiconductor laser light source industry. industry.Approaching Appotronics
Participating in Key R&D ProjectsSpecial Topic 1 In March 2024 a kickoff meeting was held in Chengdu for the “Ultra-High-Definition Wide-GamutLaser Display Metrology Evaluation Standards and Application Research” project where Appo-
tronics participated marking the official commencement of the research and development of this
Special Topic 2 project.In July 2024 the “Key Technologies for Ultra-High-Resolution LCoS Spatial Light Modulators forStrategic LeadershipLaser Display” project where Appotronics participated underwent a mid-term review organized
with Good Governance
by the High Technology Research and Development Center of the National Natural Science Foun-
dation. This project successfully passed the mid-term review after various evaluations by the
Precision Management expert group.for Sustainable Prosperity
Green Development forAppotronics was recognized as a “Single ChampionEcological Co-prosperity Enterprise in the Manufacturing Industry of Guangdong Province”
New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together
Science Popularization
Together with Public Welfare
Appotronics participated in the kick-off and implementation planAppendix demonstration meeting for the “Ultra-High-Definition Wide-Gamut LaserDisplay Metrology Evaluation Standards and Application Research” projectAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 041 / 042
In addition Appotronics as a backbone of small and medium-sized enterprises adheres to spe- president and chairman in order to collaborate with upstream and downstream enterprises to
About this Report cialized refined and distinctive development. In December 2024 the Company was recognized create an industry atmosphere that pursues high-quality development thereby contributing toas the “Specialized Refined Distinctive and Innovative Small and Medium-sized Enterprises sustainable development. As of now the Company has participated in the formulation of 10 na-(SMEs) of Shenzhen” by the Shenzhen Small and Medium-sized Enterprises Service Bureau. tional standards 29 industry standards 3 local standards and 31 group standards and has been
Message from the enlisted in the national enterprise standard “forerunners” by virtue of 5 standards.Chairman
Participated in International and National Standard Organizations
Approaching Appotronics
1.International Electrotechnical Commission/Audio video and multimedia systems
Special Topic 1 International and equipment/Terminals for audio video and data services and contents
2.International Electrotechnical Commission/Electronic displays/Laser displays
Special Topic 2
1.National Standardization Management Committee/National Audio Video and Multimedia
Systems and Equipment Standardization Technical Committee
Strategic Leadership
2.National Standardization Management Committee/National Flat Panel Display Device
with Good Governance Standardization Technical Committee/Laser Display Device Sub-Technical Committee
3.National Standardization Management Committee/National Optical Radiation Safety and
Laser Equipment Standardization Technical Committee Non-Coherent Optical RadiationPrecision Management Appotronics was recognized as a “Specialized Refined Distinctiveand Innovative Small and Medium-sized Enterprises (SMEs) of Shenzhen” Domestic
Sub-Technical Committee
for Sustainable Prosperity
4.National Standardization Management Committee/National Optical Radiation Safety and
Laser Equipment Standardization Technical Committee High-Power Laser Applications
Sub-Technical Committee
Green Development for
5.Green and Efficient Energy Consumption Products Professional Committee of China Energy
Ecological Co-prosperity Formulation of Industry Standards Conservation Association (CECA)
6.Shenzhen Standard Expert in Library
New Quality Empowerment As a leading company in the field of laser display technology Appotronics not only plays an active
for World Connection role in the formulation of domestic and overseas industry standards but also insists on synchro-
nizing research and development with standardization. Globally as a member of the International 1.Chief Quality Officer of Guangdong Quality Inspection Association/Chief Quality Officer of
Electrotechnical Commission (IEC) the Company has deeply participated in the formulation of Shenzhen Quality Strong City Promotion Association
Care for Employees to
standards across multiple cutting-edge technology fields such as laser display automotive optics 2.Laser TV Industry Branch of China Electronic Video Industry Association
Build the Future Together Industry
smart cities etc. promoting the close integration of domestic technology with international stan- 3.Shenzhen Performance Excellence Management FoundationAssociation
dards. Cumulatively Appotronics has successfully participated in the development of 10 interna- 4.Vice President of Shenzhen Standardization Association (Guangdong-Hong Kong-Macao
Greater Bay Area Standard Innovation Alliance)
Science Popularization tional standards.Together with Public Welfare and so on.In China as a member of the National Standardization Management Committee the Company
leads or participates in the formulation of standards for laser display projection display and
Appendix related application scenarios to guide the healthy development of the industry. Meanwhile the
Company actively participates in industry association activities holding key positions such as viceAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 043 / 044
Under the standardization strategy of “synchronization of R&D and standardization” the Com-
About this Report pany actively explores and practices standardization work modes and methods with the key 04.Cultural Value
aim of satisfying customers and achieving sustainable development ultimately establishing a
mechanism for synchronization of R&D and standardization. Guided by this mechanism the
Message from the Company has effectively shortened product development cycles reduced product costs and Technology and Culture
Chairman enhanced product quality leading to increased customer satisfaction and faster commercializa-
tion of scientific research achievements which provides strong support for the high-quality de- The Company leverages innovation and traditional culture to foster cultural heritage preservation
velopment of the Company. and development through urban renewal initiatives cultural tourism projects and exhibition plat-
Approaching Appotronics forms with the aim of excavating urban cultural DNA and revitalizing the vitality of traditional
practices.Case: The Formovie project was selectedIn Chengbu Miao Autonomous County Hunan Province the project “Silver Moonlight Bathing theSpecial Topic 1 as the 2024 typical audiovisual system case Banks of Wushui River” by utilizing the natural landscape along the Wushui River integrated boat
tours digital lighting rendering and immersive theatrical performances to create stunning visualIn 2024 the “Domestic Smart Projector Alternative – Pioneering Smart Audiovisual displays around the theme in order to immerse audiences in the Miao ethnic culture. OnSpecial Topic 2 Lifestyles” case led by Formovie was selected as the 2024 typical audiovisual system Meizhou Island in Fujian Province the project “First Encounter with Mazu” connected story chap-
case jointly published by the Ministry of Industry and Information Technology National
ters through a “digital red ribbon” to create an immersive visual space that vividly interprets the
Radio and Television Administration and China National Intellectual Property Adminis-
Strategic Leadership Mazu legends.tration through a rigorous process of local recommendations and expert evaluations.with Good GovernanceIn 2024 with the Company’ s support the “Encountering Sanxingdui – 12K Macro View of Na-tional Treasures” global tour was successfully held in Qatar New York and other global locations.Precision Management
With the help of digital projection technology overseas audiences transcended linguistic and geo-
for Sustainable Prosperity
graphical barriers to closely appreciate the charm of the ancient Shu civilization. This project has
contributed to accelerating the global dissemination of Chinese cultural heritage.Green Development for
Ecological Co-prosperity
New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together
Science Popularization
Together with Public Welfare
Appendix
Appotronics helped create the Miao Township digital fantasy project of
“Silver Moonlight Bathing the Banks of Wushui River”APPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 045 / 046
Case: Preserving cinematic heritage by
About this Report
virture of ALPD laser projection
Message from theIn December 2024 the 6th Hainan Island International Film Festival themed “All ThingsChairman Thrive in the Sea Light Reflects the Future” was grandly held in Sanya City. This
year’ s film festival maintained its popular open-air screening format. As a long-time
partner CINEAPPO was once again designated as the official projection provider to
Approaching Appotronics ensure the success of this Hainan Island International Film Festival. Guided by the prin-
ciple of "Island-Wide Screening Cinema for All" this event showcased over 100 excel-
lent films across cinemas and outdoor venues throughout Hainan Island. Particularly
the “Hi-Fun Outdoor Screening” event integrated film and tourism in an innovative way
Special Topic 1 by utilizing many iconic outdoor locations.Special Topic 2
Strategic Leadership
with Good Governance
Appotronics created an immersive digital light show of
Precision Management “First Encounter with Mazu”
for Sustainable Prosperity
Green Development for Social Impact of Products
Ecological Co-prosperity
Products are not merely tools to meet consumer demands but also vehicles of social responsibili-
ty. Enhancing products’ societal impact is not only the Company’ s long-term development goal
New Quality Empowerment but also the Company’ s critical component of achieving sustainable development and fulfilling
for World Connection social commitments.In 2024 the Company expanded its outreach to hundreds of universities nationwide including
Care for Employees to
Build the Future Together Peking University Central South University Jilin Jianzhu University and the Karamay Campus of
China University of Petroleum (Beijing) to provide green eco-friendly and eye-protective CINEAPPO supported the 6th Hainan Island International Film Festival
modern teaching equipment. The ALPD semiconductor laser light source with its low-carbon
Science Popularization
eco-friendly and vision-friendly features not only creates smart and sustainable educational en-
Together with Public Welfare
vironments but also safeguards the visual health of teachers and students.AppendixAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 047 / 048
About this Report 01
Message from the
Chairman
Approaching Appotronics
Special Topic 1
Special Topic 2
Strategic Leadership
with Good Governance
Precision Management
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity
New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together
Science Popularization Strategic Leadership
Together with Public Welfare
Appendix with Good GovernanceAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 049 / 050
About this Report Strategic Leadership ESG Management Framework
Message from the with Good Governance the Board of Directors (Review and Supervision) Decision-making
Chairman
Chairman (First Person in Charge) level
Approaching Appotronics
01.ESG Management
Special Topic 1
Since sustainable development constitutes an integral component of Appotronics’ core strategy
we recognize it as a critical pathway to high-quality growth and an important reference basis in
Special Topic 2 the Strategic and ESG Committee underoperational decision-making. Management
the Board of Directors level
In terms of ESG management the Company has established an innovation-driven ESG manage-
Strategic Leadership ment philosophy and a structured hierarchical governance framework with clearly defined roles
with Good Governance and responsibilities ensuring the ESG philosophy is subject to throughout the entire process of
corporate development. In the structure the Chairman as the first responsible person for ESG
Precision Management
management should oversee and supervise the progress of work comprehensively; and the Board
for Sustainable Prosperity
of Directors as the core decision-making body should integrate the concept of sustainable de-
velopment into the corporate governance system and review ESG implementation regularly each
Green Development for year to ensure the effective execution of strategic goals.Ecological Co-prosperity
The Strategic and ESG Committee under the Board of Directors should focus on the Company’ s
long-term ESG development planning and major decisions providing strategic guidance for sus-
New Quality Empowerment
tainable development through in-depth research and professional advice. The Sustainable Devel- ESG Task Force
for World Connection
opment Department is responsible for conducting sustainable development training within the Sustainable (composed of representa- Execution
Company and providing services and coordination support to relevant departments. In addition Development tives from various business level
Care for Employees to divisions functional depart-the ESG Task Force composed of representatives selected by various business divisions function- Department
Build the Future Together ments and subsidiaries)
al departments and subsidiaries is responsible for promoting the implementation of ESG practic-
es within these departments and regularly collecting and organizing ESG practices and achieve-
Science Popularization ments to ensure the effective implementation of ESG philosophy at the grassroots level.Together with Public Welfare
This report (Chinese version) was approved by the Board of Directors on April 28 2025.AppendixAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 051 / 052
About this Report 02.Communication with Main topics Main communicationStakeholder concerned channels
Stakeholders
Message from the Supplier audit and evaluationResponsible supply chain
Chairman
Appotronics maintains close communication and cooperation with stakeholders establishing a Supplier conference and distributor
Suppliers and Business ethics communication activities
regular communication mechanism to ensure stakeholders’ needs are fully listened to and distributors Mutual benefit
Whistle-blower hotline and email
Approaching Appotronics responded to. In 2024 the Company optimized various forms of communication channels with Product quality and safety
stakeholders to ensure timely information transmission and effective feedback so as to work Quality management system
together with stakeholders to create a sustainable future.Special Topic 1
Main topics Main communication Quality management system
Stakeholder
concerned channels Online promotion: official website
R&D innovation official WeChat account official
Special Topic 2
Integrity and compliance Product quality and safety blog etc.Information disclosure
Customers and
Green development Customer service Offline promotion: exhibitions Government Research investigation consumers
Strategic Leadership stores promotional activitiesdepartments and Employee rights and interests Responsible marketing
with Good Governance regulatory agencies Symposium Customer service hotline
Responding to national Information security
Work report
policies Customer satisfaction survey
Precision Management
Customer privacy protection
for Sustainable Prosperity
Corporate governance General meetings of shareholders
Green Development for Business performance Performance briefings
Ecological Co-prosperity Industry forums exchange meetings
R&D innovation Regular reports and information
Shareholders and disclosure R&D innovation Intellectual property protection
investors Business ethics
New Quality Empowerment Roadshow survey Industry associations
Intellectual property rights Industry-university-research interaction
Information disclosure and other partners
for World Connection SSE E-interactive platform email Industry influence Participation in the development of
Green and low-carbon hotline and public investor recep- Cultural value industry standards
opportunities tion events etc.Support for cultural projects
Care for Employees to
Build the Future Together
Employee trade union
Science Popularization Employee rights and Employee representative Carry out public welfare activities
Together with Public Welfare interests Public welfare
Employee training Adhere to green development
Employee Employee development Environmental protection
Employee questionnaire survey General public Science popularization base for
Care for employees Science popularization adolescents
Appendix Online channels: company intranet
Health and safety educationWeChat official account enterprise Industry-university-research
WeChat etc. cooperationAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 053 / 054
About this Report 03.Analysis of Material Topics
In accordance with international and domestic policies and standards and the Company’ s material topics in previous years with a focus on the Guidelines of Shanghai Stock Exchange on Self-regulatory Supervision of
Message from the Companies Listed on the STAR Market No. 13 – Preparation of Sustainability Report Appotronics has identified and determined 23 material topics after fully considering the key points concerned by internal and ex-
Chairman ternal stakeholders peer benchmarking analysis the Company’ s industry characteristics and strategic direction. Moreover Appotronics has also drawn a matrix analysis chart of material topics from two dimensions
namely “Materiality to the Company’ s finances operations and future development” and “Materiality to stakeholders” based on the results obtained through questionnaire surveys. This matrix analysis chart is com-
prehensively evaluated by the Company’s ESG Task Force and finally approved by the Company’s Board of Directors.Approaching Appotronics
Analysis of Material Topics
Special Topic 1
17 1 1 Integrity and Compliance 13 Information Security
11 12 2 Business Performance 14 Industry Contribution
Special Topic 2
15
18 3 Business Ethics 15 Product Quality
Strategic Leadership and Safety
with Good Governance 22 13 4 Risk Management 16 Responsible Marketing
24
Precision Management
for Sustainable Prosperity 5 Addressing Climate Change 17 Customer Service20
3 19 16 6 Pollutant Emissions and 18 Responsible Supply
Green Development for
Waste Management Chain Management
Ecological Co-prosperity
21 14 7 Biodiversity Conservation 19 Employee Rights
and Interests
New Quality Empowerment 6
9 8 Greenhouse Gas Emission 20 Employee Developmentfor World Connection
Management
2310
8 9 R&D of Green and 21 Care for EmployeesCare for Employees to
Low-carbon Technologies
Build the Future Together 5 10 Green Operation 22 Health and Safety
7
Science Popularization
11 R&D Innovation 23 Social Responsibility
Together with Public Welfare
Materiality to the Company 12 Intellectual Property Rights
Appendix
Corporate Governance Topics Environment Topics Social Topics
Materiality to stakeholdersAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 055 / 056About this Report 04.ESG Practices Case: Self-developed “greenhouse gasverification” training courses
Since its listing as one of the first STAR Market companies in 2019 Appotronics has consistently
Message from the regarded ESG information disclosure as one of the core practices for corporate sustainability. It is
The Company places great importance on the implementation of ESG philosophy. In
Chairman the sixth consecutive year for Appotronics to voluntarily disclose independent ESG reports. During
2024 the Sustainable Development Department designed an internal training course
the reporting period relying on its outstanding ESG practices the Company has maintained Wind
on “Greenhouse Gas Verification” . This course helps employees understand the impor-ESG Rating A and has been recognized with various honors such as the “Golden Bull Award ESG tance of energy conservation and carbon reduction through systematic knowledgeApproaching Appotronics Top 100 by China Securities Journal” “2024 ESG Innovative Practice Case Award of Xueqiu popularization and will be provided to all employees in phases.Annual Golden List” and “ESG Golden Dawn Award by Weekly on Stocks”.Short-term objectives of the course are to popularize the knowledge of greenhouse
The Company’s stance on ESG disclosure as a long-term commitment will continuously ensure the gases and to enhance employees’ knowledge and understanding of carbon reduction.Special Topic 1 Particularly these courses aim to enable employees to master the greenhouse gas veri-
transparency and public availability of ESG-related information and the implementation of sus-
fication skills and deeply appreciate the significance of carbon reduction through prac-
tainable development principles through practical actions to create long-term value for stakehold-
tical training.ers.Special Topic 2 Long-term objectives of the course are to encourage employees to integrate ener-
gy-saving and carbon reduction concepts into their daily work and life contributing to
the Company’s sustainable development.Strategic Leadership
with Good Governance
Precision Management
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity
New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together
Science Popularization
Together with Public WelfareThe Company’s self-developed “greenhouse gasverification” training courses
Appendix
Screenshot of covers of ESG report for the first six yearsAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 057 / 058
About this Report 02
Message from the
Chairman
Approaching Appotronics
Special Topic 1
Special Topic 2
Strategic Leadership
with Good Governance
Precision Management
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity
New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together Precision Management
Science Popularization
Together with Public Welfare
for Sustainable Prosperity
AppendixAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 059 / 060
About this Report Precision Management for Sustainable Prosperity
Message from the
Chairman
01.Corporate Governance Operation of the Board of Directors
Approaching Appotronics
Sound transparent and balanced corporate governance is pivotal to healthy enterprise develop-
Dimensions of ment. Appotronics carries out its work in strict accordance with the Company Law of the Peo-
responsibility Indicators Unit 2024 ple’ s Republic of China the Securities Law of the People’ s Republic of China and other laws
Special Topic 1
regulations and regulatory requirements. The Board of Directors which is the Company’ s perma-
Number of the general
Time 4
meetings of shareholders nent decision-making body has four professional committees: the Audit Committee the Strate-
gic and ESG Committee the Compensation and Evaluation Committee and the Nomination
Special Topic 2 Number of meetings held Timeby the Board of Directors 17 Committee. The Company has formed a governance structure including “the General Meetings ofShareholders the Board of Directors the Board of Supervisors and the management” with clear
Number of meetings held
Time
by the Board of Supervisors 6 responsibilities and collaborative operations which can optimize the operating mechanism and
Strategic Leadership
Governance of the enhance governance efficiency.with Good Governance Number of meetings held General Meeting of Time
by the Audit Committee 9
Shareholders the The professional and energetic Board of Directors drives the Company’ s business innovation. In
Precision Management Board of Directors Number of meetings held by the
Time 10 2024 the Company completed the member election for the new session of the Board of Direc-and the Board of
for Sustainable Prosperity Strategic and ESG CommitteeSupervisors tors and the Board of Supervisors and employment of senior executives according to laws
Number of meetings held by the Com-
Time 3 recruiting multi-disciplinary experts as independent directors to broaden application expertise. As
Green Development for pensation and Evaluation Committee of now the Company’ s third session of the Board of Directors has consisted of 7 directors
Ecological Co-prosperity Number of meetings held by the 3 including 3 independent directors and 1 employee representative director. Members of the Board Nomination Committee Time
of Directors with diverse backgrounds exercise their duties diligently and conscientiously to ensure
New Quality Empowerment Number of special meetings held 3 scientific decision-making. The Company’ s third session of the Board of Supervisors has consisted Timeby independent directors
for World Connection of 3 supervisors including 1 employee representative supervisor. The composition of the Board of
Number of members of the 7 Supervisors and the qualifications of its members meet the requirements of laws and regulations PersonBoard of Directors
Care for Employees to and all supervisors possess professional knowledge and work experience.Build the Future Together Proportion of male directors %
on the Board of Directors 71.43 In 2024 the Company convened a total of 4 general meetings of shareholders17 meetings of the Composition of the
Board of Directors Board of Directors 6 meetings of the Board of Supervisors 25 meetings of professional commit-Proportion of female directors
Science Popularization %on the Board of Directors 28.57 tees 3 special meetings of independent directors and 1 general meeting of shareholders. These
Together with Public Welfare meetings addressed various matters including review of regular reports profit distribution share
Number of independent
Person
directors 3 repurchase and cancellation and the election of new members which improved the governance
system and strengthened the internal control system. As a result the Company’ s operational
Number of investor
Appendix Time
reception events 270+ levels and quality has been greatly improved at the same time of ensuring fair and scientific deci-
Investor relationship sion-making.Investor reception
Participant 550+
event outreachAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 061 / 062
About this Report
Message from the
Chairman General Meeting
of Shareholders
Approaching Appotronics
Special Topic 1
Special Topic 2 Board of Directors
Strategic Leadership
with Good Governance
Precision Management Board of Supervisors
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity
New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together
Science Popularization
Together with Public Welfare
Compensa-
Strategic
Audit tion and Nomination
and ESG
Committee Evaluation Committee
Appendix Committee
Committee
Site of the 2023 Annual General Meeting of Shareholders of AppotronicsAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 063 / 064
Thanks to the steadily enhanced governance capabilities high-quality information disclosure and Investor Relationship Management
About this Report excellent performance in valuing shareholder returns the Company was recognized as the "2023Golden Information Disclosure Award” by China Securities Journal at the 26th Golden Bull Award
In 2024 Appotronics strengthened communication and interaction with investors in various waysfor Listed Companies in 2024 and has held the title of the “Best Board of Directors Award forestablishing a good capital market image. The Company held over 270 investor reception activitiesMessage from the Listed Companies” on the reputation list of Chinese listed companies for four consecutive years.throughout the year including roadshows reverse roadshows online and offline strategy meet-
Chairman
ings and investor open days contacting over 550 investors.In terms of information disclosure the Company strictly complies with laws and regulations and
Approaching Appotronics the Information Disclosure Management Policy to ensure truthful accurate complete timely and
equitable disclosures. The Company has proactively published ESG reports and letters to share-
holders multiple times and disclosed designated partnerships with domestic and international au-
Special Topic 1 tomobile manufacturers and English versions of regular reports to help investors understand the
Company’s fundamentals and long-term strategy.In addition the Company held 4 performance briefings and 3 investor open day reception activi-
Special Topic 2
ties throughout the year answering over 950 investor hotline calls proactively disclosing 9
research information record sheets and regularly responding to over 130 investor inquiries on
public communication platforms.Strategic Leadership
with Good Governance
Investor
Precision Management 270+ Investorsreception reached 550+
for Sustainable Prosperity Appotronics won the “2023 Golden Information Disclosure Award” activities events investors
at the 26th Golden Bull Award for Listed Companies
Green Development for
Ecological Co-prosperity
Performance 4 Investor opentimes activitiesbriefings day reception 3
activities
New Quality Empowerment
for World Connection
Investor 950+ Proactive disclosureCare for Employees to hotline of research informa- 9 sheets
Build the Future Together answering calls tion record sheets
Science Popularization
Together with Public Welfare Response to inquiries
from public commu- 130+
nication platforms items
AppendixAppotronics has held the title of the “Best Board of Directors Awardfor Listed Companies”for four consecutive yearsAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 065 / 066
Case: Enriching channels and methods of Repurchase of Shares
About this Report
communication with minority shareholders
In 2024 the Company executed three share repurchase programs cumulatively repurchasing
7.1269 million shares with a total investment of RMB 119 million. Due to confidence in our techno-
Message from the In the past two years the Company has successfully engaged in the automotive busi- logical capabilities business resilience growth prospects and intrinsic value we canceled 5.8425
Chairman ness and actively utilized industry exhibitions to expand channels for communication million shares from the dedicated repurchase securities account. Through these actions the Com-
with investors. Subsequent to the 2023 Shanghai International Automobile Industry Ex-
pany without affecting daily operations expressed greater sincerity to investors that we attached
hibition the Company participated in the 2024 Beijing International Automotive Exhibi-
tion where we attracted numerous institutions and small and medium-sized investors. great importance to the capital market so as to boost investors’ confidence in shareholding. Approaching Appotronics
We proactively arranged an investor relations management team to receive minority
shareholders at the exhibition site and equipped them with professional guides to lead
investors to intuitively experience the Company’ s new products and business pros-
Special Topic 1 pects.Additionally in 2024 the Company in collaboration with the Shanghai Stock Ex- 02.Integrity and Compliance
change Bosera Asset Management Huatai Securities Agricultural Bank of China and
Special Topic 2 other institutions held multiple collective reception activities for minority shareholders.These reception activities included an exhibition hall visit company presentations Q&A Compliance operation forms the cornerstone of high-quality corporate development and the key
sessions and free communication through which minority shareholders gained a com- resilience in response to volatile markets. The Company upholds integrity and compliance
Strategic Leadership prehensive understanding of the Company and discussed suggestions for future devel- strengthening internal control management to build an honest responsible and trustworthy cor-
with Good Governance opment. With these initiatives we have achieved two-way communication between porate image while continuously enhancing compliance operation capabilities and comprehensive
the Company and the capital market and safeguarded minority shareholders’ rights. quality in the global market.Precision Management
for Sustainable Prosperity
Financial Compliance
Green Development for
Ecological Co-prosperity The Company has institutionalized standardized financial processes for the collection processing
and confirmation of financial data by formulating policies such as the Financial Information Disclo-
New Quality Empowerment sure Management Regulations the Revenue Accounting Methods and the Financial Position
for World Connection Manual. For important financial data the Company regularly analyzes and monitors financial posi-
tions to promptly identify and address anomalies ensuring data accuracy and completeness. At
the same time the Company has improved the preparation process for financial reports imple-
Care for Employees to
Build the Future Together menting multi-tiered verification mechanisms with clarified responsibilities for different levels to
minimize errors in financial reports. The annual report is audited by external auditing firms to fur-
ther enhance data reliability.Science Popularization
Together with Public Welfare In addition the Company regularly tracks the latest regulations from the Ministry of Finance and
other regulatory authorities to organize timely policy dissemination and strengthens training in ac-
“Servicing Investors to Share High-quality Growth” | Investors Entering
Appotronics Event Titled “I am the Shareholder” counting policies to enhance financial personnel’ s understanding and application of policies. We
Appendix also revise our financial policies promptly based on regulatory changes to ensure that our account-
ing methods comply with accounting standards and regulatory requirements.APPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 067 / 068
Compliance with Intellectual
About this Report
Property Rights Guided by the philosophy of “Transparent Integrity Mutual Benefit” the Company
deepens its integrity ecosystem through the following approaches. Internally we enhance
Message from the The Company attaches great importance to the compliance with intellectual property rights sub- employees’ integrity awareness through signing integrity commitments conducting integri-
ty publicity activities and learning anti-corruption letters. Externally we solidify our
Chairman ject to the principle of protecting its own intellectual property rights while respecting others’ intel- Cultural
foundation of integrity by signing integrity agreements sending holiday greetings and
lectual property rights ensuring comprehensive protection of intellectual property rights through Awareness carrying out offline visits to create a transparent and fair business environment. For
various measures. Focused on core technologies and application scenarios the Company deploys example in the training for new employees we conduct integrity publicity activities to
Approaching Appotronics advocate integrity governance goals and interpret relevant clauses and publicize reporting patents trademarks and copyrights protection worldwide through timely application and regis- and complaint channels so that employees can fully understand integrity policies.tration to protect intellectual property rights achievements. At the same time the Company con-
tinuously pays attention to new policies and regulations regarding intellectual property rights pro-
Special Topic 1 tection to improve management policies and strengthen trade secret protection and conducts
intellectual property rights early warning to reduce intellectual property rights risks during the de-
velopment process.Special Topic 2 In 2024 the Company obtained the certification of Requirements for Enterprise Intellectual Prop-
erty Compliance Management Systems (GB/T 29490-2023). This standard was officially imple-
mented on January 1 2024. This updated standard highlighting compliance attributes has
Strategic Leadership
strengthened the intellectual property rights compliance management system to help enterprises
with Good Governance
regulate management and prevent risks.Precision Management
for Sustainable Prosperity
Green Development for 03.Risk Control
Ecological Co-prosperity Integrity publicity activities in the onboarding training for new employees
Enterprise risk control is crucial since it enables early identification of risks loss mitigation opera-
New Quality Empowerment tional stability and enhanced competitiveness and drives sustainable development.for World Connection
Audit Mechanism
Care for Employees to
Build the Future Together
Science Popularization
The Company advocates for the values of integrity and honesty maintaining a zero-toler-
Together with Public Welfare ance attitude towards corruption. The Board of Directors is responsible for overseeing
Top-tier
anti-corruption efforts while the Audit Department is in charge of integrity governance
management
and advocacy ensuring that business management complies with ethical and commercial
standards.Appendix
Organizing employees to study the “CEO’s anti-corruption letter”APPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 069 / 070
In 2024 the Company organized all employees to study the CEO’ s anti-corruption letter titled in Personnel the Issues of Foreign-related Contracts and Visas and the Prevention of Common
About this Report “Steadfastness with a Certain Reverence Leads to Solid and Sustained Progress” in order to Legal Risks in Enterprise Contracts to raise employees’ risk awareness and capabilities.deeply internalize the “Integrity Simplicity Probity Performance-Driven” cultural values.Message from the
Chairman
The Company has established an independent Audit Department with internal audit work
overseen and evaluated by the Audit Committee of the Board of Directors to ensure the
Approaching Appotronics
independence and authority of the audit work. The Audit Department adopts a
Work
project-based model to conduct a full-chain audit of business processes. For high-risk
structure matters the Audit Department conducts special investigations cyclically assessing risks
and driving corrective actions to assist in optimizing workflows and enhancing operational
Special Topic 1 efficiency and risk control capabilities.Special Topic 2
In 2024 the internal control work focused on special governance of internal control
matters management improvement and process system construction. Through special
Internal governance business process audits internal control interviews and departmental
Strategic Leadership control feedback etc. we identified process and internal control risks and analyzed reason from
evaluation a full-process management perspective in a timely manner so as to drive all departments
with Good Governance to optimize processes rectify internal control deficiencies and continuously enhance the
The Company held a special training on legal knowledge for R&D personnel
level of internal control governance.Precision Management
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity
Internal Control Mechanism
New Quality Empowerment
for World Connection Externally the Company has established a comprehensive risk management system spanning all
business operations to identify internal and external risks in compliance with the laws and regula-
tions such as the Company Law of the People’ s Republic of China the Securities Law of the
Care for Employees to
People’ s Republic of China and the Company’ s Articles of Association. With clarified operational
Build the Future Together
requirements for risk assessment response avoidance reduction and acceptance the Company
standardizes risk management and enhances risk prevention levels to protect investors’ rights and
Science Popularization interests.Together with Public Welfare
Internally guided by risk management principles the Company strengthens planning coordination
and cross-departmental synergies optimizes supply chain resilience through data-driven opera-
Appendix tional analytics and drives management optimization and cost-efficiency initiatives to meet
reform and innovation demands.The Company held a special training on issues
In 2024 the Company conducted multiple training sessions such as the Legal Knowledge for R&D of foreign-related contracts and visasAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 071 / 072
The specific reporting system and processing
About this Report mechanism are as follows：
Message from the Whistle-blowing hotline 13620926735
Chairman
Approaching Appotronics Whistle-blowing email jubao.audit@appotronics.com
For individuals who actively report and cooper-
Special Topic 1
ate with the investigation and verification Ap-
potronics will reward the whistleblowers with
Whistle-blowing 30% to 50% of the recovered amounts (up to
Special Topic 2 reward RMB 1 mil l ion in maximum) and the whis-
tleblowers will be exempt from punishment
and given priority cooperation opportunities
under the same conditions.Strategic Leadership
with Good Governance The Company held a special training on the prevention
of common legal risks in corporate contracts For whistle-blowing clues the Company will
Precision Management assign dedicated personnel to follow up and
for Sustainable Prosperity Protection manage and strictly maintain confidentiality
measures
to protect the legitimate rights and interests
Green Development for Anti-corruption of the Whistleblowers.Ecological Co-prosperity
In order to create a clean corporate environment Appotronics has successively issued a series of
documents internally including the Anti-Corruption Management System the Conflict of Interests
New Quality Empowerment
System and the Top Prohibitions for Employee Action. At the same time the Integrity Agree-
for World Connection
ment has been embedded in the employment contracts for employees. In 2024 the Company
required all employees to sign integrity commitments clearly outlining the integrity obligations
Care for Employees to that employees must fulfill during their tenure.Build the Future Together
At the same time the Company publicizes reporting channels through the official website part-
ner integrity agreements holiday greeting emails OA platform and other means to encourage all
Science Popularization
partners and employees to report corrupt behaviors. To ensure the effective implementation of
Together with Public Welfare
reporting the Company arranges for designated personnel to follow up reporting leads through
dedicated channels with strict confidentiality maintained throughout the entire process so as to
Appendix ensure comprehensive protection of the whistleblower’ s privacy and legal rights. The Company
strictly prohibits any form of retaliation against whistleblowers. Any discovered acts of retaliation
will be punished severely and may resort to judicial authorities for serious legal accountability if
involving illegal matters. Integrity whistle-blowing information published on the Company’s official websiteAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 073 / 074
About this Report 04.Digital Construction
Appotronics recognizes digital construction as a pivotal enabler in the modern era. Particularly the adoption of AI technology has significantly enhanced operational efficiency optimized customer experiences
Message from the strengthened corporate competitiveness and accelerated market responsiveness. Digitalization has driven sustainable development by breaking down information silos enabling collaborative workflows and reducing
Chairman operational costs. The Company encourages all employees to actively embrace AI transformation and jointly promote the Company’ s journey towards digitalization (Please refer to the special topic 1 in this Report for
details).Approaching Appotronics In 2024 Appotronics successfully launched multiple information systems including MOM HR and BIP. The MOM system enhanced the data collection capabilities of automated equipment laying a solid foundation
for the construction of intelligent factories; the HR system addressed the pain points of the previous system significantly improving human resource management efficiency; the BIP system as a bridge for informa-
tion systems achieved data integration and analysis in combination with FineBI tools effectively supporting enterprise operations and decision-making.Special Topic 1
The Company’s self-developed BIP system for internal use
Special Topic 2
BIP Data Display and Analysis Platform
Data Display and Analysis
Strategic Leadership FineBI FineReport BIP Business Function
with Good Governance
Precision Management
for Sustainable Prosperity Data Security/Data Encryption
Green Development for
Ecological Co-prosperity
BIP Business BIP Data Governance BIP Data Monitoring
New Quality Empowerment System Business Query Application Data Layer (ADS) Data Map Data Visualization
for World Connection
BIP Integration Platform
Data Audit DWD (Common Detailed Data) DWS (Common Summary Data) Data Quality Center
Care for Employees to
Build the Future Together
Data Integration Tools Operational Data Store (ODS) Data Asset Center
Science Popularization
Together with Public Welfare
BIP Scheduled Tasks (Calculation Algorithms Cleansing Storage)/CKettle ESB
Appendix
Data Sources PLM/MES/CRM/SRM/ERP/OA/HR (Internal Applic)APPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 075 / 076
About this Report 03
Message from the
Chairman
Approaching Appotronics
Special Topic 1
Special Topic 2
Strategic Leadership
with Good Governance
Precision Management
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity
New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together Green Development for
Science Popularization
Together with Public Welfare
Ecological Co-prosperity
AppendixAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 077 / 078
About this Report Green Development for Ecological Co-prosperity
Message from the
Chairman
01.Addressing Climate Change Company is accelerating green and low-carbon innovation to do our best to form new market competitive advantages.
Approaching Appotronics
Climate Strategy Climate Risk Analysis
Special Topic 1With emphasis on the construction of climate resilience Appotronics integrates the “sustainable Impact ResponseCategory Namedevelopment philosophy” into the development strategy. We proactively fulfill our social responsi- Explanation measures
bilities in climate governance and continuously strengthen our climate risk awareness and identifi-
Special Topic 2 cation capabilities to adapt to tightening green policy constraints and accelerate our internal 1. The Company has formulat-
ed the Emergency Response
green management optimization to advance carbon peaking and carbon neutrality goals and ad-
Preliminary Plan for Natural
dress global climate challenges. Disasters and established
Strategic Leadership
corresponding early warning
with Good Governance In 2023 the Company commissioned a professional agency to conduct an independent Acute risks and response mechanisms
third-party verification on the Company’ s greenhouse gas inventory report according to ISO (such as typhoons wh i ch a re cont i nuous l y
heavy rain and updated and imp roved
Precision Management 14064-1:2018 and ISO 14064-3:2019. Based on the results of this verification which took the other extreme As the Company’ s princi- according to actual situa-
for Sustainable Prosperity Bao’ an factory as the organizational boundaries scope 1 and scope 2 emissions were measured weather events) pal operating locations are tions;
at 264.43 tons of carbon dioxide equivalent and 2939.37 tons of carbon dioxide equivalent placed in coastal areas
sudden r i s k s such as 2. To mitigate potential damage
Green Development for respectively. With the relocation of the Company’ s factories and headquarters to a new place
typhoons heavy rain high to fixed assets the Compa-
Ecological Co-prosperity and the introduction of new smart production equipment the Company will redefine organiza- t e m p e r a t u r e s a n d ny has purchased appropri-
tional boundaries and establish updated emission reduction targets on the basis of the 2025 long-term risks such as ate insurance to effectively
New Quality Empowerment greenhouse gas accounting. Physical rising sea levels may have
reduce economic losses;
for World Connection Risks a certain impact on the 3. The Company is able to pro-
In the future the Company will achieve carbon reduction and energy conservation by increasing Company’ s daily opera- vide technical support for
tions l ike reduced em-
clean energy adoption optimizing production technologies developing and popularizing new employees working from
Care for Employees to ployee work efficiency home to ensure a normal
low-carbon and eco-friendly technologies implementing circular production models and so on.Build the Future Together damage to fixed assets work pace;
such as production equip-
Chronic risks 4. On the production side the ment or other potential
Company can ensure pro-
Science Popularization (such as prolonged economic losses. duction pace effect ive ly
Together with Public Welfare Climate-related Risks and Opportunities high temperatures
drought etc.) through measures such as
production plan optimiza-
Climate change is bringing a series of risks to ecosystems and human economic and social devel- tion efficient production
Appendix opment. Accordingly Appotronics has formulated response measures based on the analyzed
organization and enhanced
impact of climate change risks that have been actively identified and assessed by us on key links ab i l i t y of equ ipment to
withstand extreme weather
in the value chain upstream and downstream. At the same time the transformation of national
in a rational manner.policies also brings many business growth opportunities. Upholding proactive transformation theAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 079 / 080
Climate Risk Analysis Analysis of Climate Opportunities
About this Report
Impact Response Impact Response
Category Name Explanation Category Namemeasures Explanation measures
Message from the
Chairman Since the national policy of Centered around the ALPD semi-
carbon peaking and carbon conductor laser light source technol-
Green technology can pro-
neutral ity imposes more ogy by leveraging lasers’ advantages
The Company continuous ly pays mote the transformation of low-energy consumption and
Approaching Appotronics rigorous requirements on attention to international policies and of enterpr i ses towards
the disclosure of emission environmental protection the Com-
relevant laws and regulations in the Technology low-carbon and sustainable
reduction information relat- pany continuously increases invest-
field of carbon peaking and carbon opportunities mode ls lead ing to the
Policy and legal ed to corporate cl imate ment in green innovation to integrate
neutrality to timely report relevant emergence of brand-new
risk and there are inconsisten- this ALPD technology throughout
Special Topic 1 information to business divisions and business models.cies between domestic and the entire process from technology
incorporate climate change factors
international policy frame- to product thus attracting the favor
into investment decision-making con-
works the Company i s of the low-carbon economy market.siderations.exposed to increased com-
Special Topic 2 With the continuous expan-pliance costs and stricter
sion of the green market
regulatory enforcement. As a lead organization for major
laser display technology
national scientific research projects
which is recognized as a
Strategic Leadership Achieving emission reduc- In technical research and develop- the Company actively participates in strategic emerging industry
with Good Governance t i o n g o a l s p o s e s n e w ment and product design the Com- influential domestic and international in China has demonstrated
demands for technological pany considers energy conservation forums stays al igned with policy significant energy-saving
Technology upgrades urgently requiring and environmental protection as directions takes the init iative to advantages and obtained
Precision Management risk the development of more important factors paying attention Transfor- Industry undertake national-level initiatives benefits from favorable
for Sustainable Prosperity Transfor- low-carbon and environ- to low-carbon technologies in the
opportunities
mation and contributes to the formulation of policies of carbon peaking
mation risk mentally friendly technolo- industry and market to introduce opportuni- domestic and international stan-and carbon neutrality. At
gies and products. cooperation in a timely manner. ties dards. Through enhanced industry Green Development for the same time the concept dialogue and collaboration the Com-
of sustainable development
Ecological Co-prosperity Consumers and customers pany plays a vital role in promoting
has become deeply rooted
are willing to choose more the development of the semicon-
The Company increases investment in in public consciousness and
low-carbon and environ- ductor laser light source industry.New Quality Empowerment green innovation optimizes supply widely embraced as a shared
mentally friendly products.for World Connection chain management selects low-car- value across the industry.Market At the same time the high
bon and eco-friendly raw materials
risk requirements for emission
and obtains financia l support by The Company proactively
Care for Employees to reduction throughout the By strengthening disclosure related to leveraging green financial tools to alle- fulfills its social responsibili-
entire industry chain may low-carbon products and zero-car-
Build the Future Together viate financial burdens. ties by increasing invest-
lead to increased costs of bon governance the Company with
ment in green research and
raw materials and energy. integration of green principles into
development and delivering
product design conducts regular
Science Popularization Reputation eco-f r iend ly p roducts . The Company regular ly disc loses greenhouse gas inventor ies and
Together with Public Welfare These ef fo r t s not on l y c l imate i n fo rmat ion p rompt l y opportunities actively purchases green electricity to
Fa i lu re to adapt to the enhance the Company’ s
responds to stakeholder concerns replace fossil energy. Through these
trend of green develop- brand image to att ract
Reputation actively fulfills climate responsibilities actions the Company demonstrates
ment may ha rm b rand ESG investments but also
Appendix risk participates in the formulation of its commitment to energy conserva-credibility and cause inves- help establish robust supply
industry green standards and policies tion and emissions reduction building
tors to lose confidence. chain partnersh ips that
and strengthens cooperation with a strong reputation for sustainability.deserve trust and support.environmental protection agencies.APPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 081 / 082
About this Report 02.Green R&D and Innovation Case: Energy-saving features of ALPD laser
projectors attracted international clients
Laser technology stands out as a highly representative energy-efficient light source due to several
Message from the distinctive characteristics including: high luminous efficiency converting a greater proportion of
Chairman energy into light; strong directionality ensuring concentrated energy output and minimal wast-
age; excellent monochromaticity delivering precise wavelengths as needed; long lifespan reduc-
ing replacement costs; and high compatibility with modern technologies significantly reducing
Approaching Appotronics energy consumption due to broad application across display lighting industrial and medical sec-
tors.Appotronics fully leverages its self-developed ALPD semiconductor laser light source technology
Special Topic 1
to maximize energy-saving benefits throughout the product R&D and design process thereby ad-
vancing its efforts to break through green technology barriers. Taking Appotronics’ ALPD laser
light source cinema projection solution as an example according to the results that have been
Special Topic 2 extensively tested and validated compared with xenon lamps the laser light source can save 1.8
kWh of electricity per hour on average and 1 kWh of electricity generates approximately 0.86 kg
of CO?. As of December 31 2024 the light sources of Appotronics’ laser projection solutions in
Strategic Leadership China with a total running time of approximately 379 million hours have collectively saved 682
with Good Governance million kWh of electricity and reduced carbon dioxide emissions by over 586800 tons.Precision Management
for Sustainable Prosperity
Case: Energy-saving features of ALPD laser
projectors attracted international clients The Company participated in the CineEurope 2024 exhibitionGreen Development for
Ecological Co-prosperity
New Quality Empowerment In June 2024 CINEAPPO participated in the CineEurope 2024 exhibition and show-
cased its ALPD laser light source cinema projection solutions. As the energy-efficient
for World Connection
ALPD laser light source could significantly reduce cinema electricity costs while main-
taining high projection quality it garnered significant attention at CineEurope 2024. Es-
Care for Employees to pecially it is a good choice for cinema operators in regions such as Europe since this
Build the Future Together solution meets their demands on high projection quality and lower electricity costs.One overseas customer commented: “Introducing ALPD laser technology was verytimely. After the upgrade we saw improvements in brightness extended device lifes-
Science Popularization pan and substantial energy savings which are truly impressive. ALPD has been
Together with Public Welfare widely used in the Chinese market for nearly a decade with proven reliability andresponsive after-sales service. We are very satisfied.”
AppendixAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 083 / 084
About this Report 03.Green Buildings
In 2025 Appotronics’ headquarters building officially commenced operation. During the construc-
Message from the tion phase with the aim of creating a green building resilient to climate-related risks Appotronics
Chairman continuously addressed various challenges and considered a wide range of environmental factors
to preserve the ecological environment characteristics before and after construction while inte-
grating sustainability principles throughout the project. We adhered to strict environmental stan-
Approaching Appotronics dards to extend the building’ s environmental life cycle and advance the Company’ s commitment
to a sustainable future.Special Topic 1
Green Building Certification
In March 2024 Appotronics’ headquarters building passed a comprehensive evaluation and
Special Topic 2
achieved the Shenzhen Bronze-level Green Building Certification as meeting the requirements of
the Shenzhen Residential Building Energy Conservation Design Code (SJG 45-2018) and the Shen-
Strategic Leadership zhen Public Building Energy Conservation Design Code (SJG 44-2018).with Good Governance
Throughout the construction process Appotronics upheld green building principles and promoted
zero-carbon development. The building features a high-efficiency central air conditioning system
Precision Management intelligent lighting and energy management systems to optimize energy consumption. At the
for Sustainable Prosperity same time it has improved water utilization efficiency through measures such as rainwater reten-
tion systems water-saving fixtures and micro-spray irrigation. This project also utilizes recyclable
Green Development for green building materials and optimized spatial design to enhance natural ventilation while mini-
Ecological Co-prosperity mizing light and noise pollution.New Quality Empowerment The completion of Appotronics’ headquarters building is a vivid demonstration of the Company’ sfor World Connection green development philosophy which aligns with its mission of “empowering green developmentthrough technology.”
Care for Employees to
Build the Future Together
Science Popularization
Together with Public Welfare
Appendix
Overall view of Appotronics Headquarters TowerAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 085 / 086
Energy-efficient Building Sponge City System
About this Report
In response to global challenges such as energy shortages and environmental degradation Appo- With the rapid pace of urbanization the increased impermeable surfaces in cities have reduced
tronics is committed to eliminating energy waste from its source. Appotronics Headquarters rainwater infiltration exacerbating water management challenges such as lakes and wetland deg-
Message from the
Tower achieves industry-leading performance in energy savings water efficiency and integrated radation and weaker urban drainage capacity. Located in the Liuxiandong Headquarters Base in
Chairman
resource utilization through optimized power distribution lighting and HVAC systems. Nanshan District Shenzhen where the environment is hydrologically sensitive Appotronics Head-
quarters Tower required an effective sponge city system to address these challenges.Appotronics introduced two 10kV municipal power supplies (each with a load of 12000kVA) in the
Approaching Appotronics
headquarters building employing a ring network power supply system for mutual backup so as Appotronics adopted the strategy of “Low Impact Development (LID)” with the core objective of
to reduce line overload and lower energy consumption. At the same time the building is maintaining pre-development hydrological characteristics. Through methods such as infiltration
equipped with diesel generator sets with four large-capacity dry-type transformers and the retention and regulation we enhanced projects’ resilience to risks and achieved goals such as
Special Topic 1 power distribution room is located within 200 meters of the furthest load to shorten transmission mitigating flooding reducing runoff pollution and improving rainwater utilization thereby contrib-
distance and reduce line losses. In terms of the lighting system we maximize the use of natural uting to the development of a green and ecological urban environment. During the construction
light in combination with smart control systems for automated and centralized management in process we adopted “natural sponge” strategies in the projects. We utilized terrain to divide
Special Topic 2 public and exterior spaces of this building. Through various control methods including grouping drainage zones and organize drainage systems and favor gravity-based drainage systems to
illumination sensing motion detection and dimming strategies a combination of coarse and fine reduce pipeline depth. Meanwhile we install PP modular water storage tanks to collect and store
adjustments is available which will minimize the lighting energy consumption. The HVAC system rainwater reducing peak flow and delaying runoff peaks so as to ensure a certain amount of
Strategic Leadership employs various high-efficiency solutions to further save electricity. In details we deploy wa- runoff is discharged after development. We also applied the “artificial sponge” techniques includ-
with Good Governance ter-cooled thermal energy storage central air conditioning systems for the main units of commer- ing lateral and bottom waterproofing to prevent subsidence discharge openings in impermeable
cial air conditioning in R&D rooms combined air-handling units for the ground-floor lobby coil areas such as roads and parking lots to prevent erosion and flow and energy dissipation mea-
units and fresh air systems for podium buildings and office areas split-type air conditions for es- sures at pipeline inlets to minimize impact.Precision Management
sential equipment rooms such as pump control room and variable frequency fans for ventilation
for Sustainable Prosperity
As of the end of the reporting period the sponge city system at Appotronics’ headquarters
system of the underground garage.building achieved a total runoff control rate of 73.44% with an annual runoff pollution reduction
Green Development for
Through these comprehensive measures we significantly improve the building’ s energy efficiency rate of 58.75%. These results fully met the requirements of the Sponge City Special Plan of Nan-
Ecological Co-prosperity
and establish a benchmark for energy-saving practices in the industry. shan District and the land use planning permit. Appotronics’ headquarters building has successful-
ly passed the final inspection.New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together
Science Popularization
Together with Public Welfare
Appendix
The headquarters building adopted a lower energy-consuming The PP modular water storage tanks adopted by the
water storage central air conditioning cooling system Appotronics Headquarters Tower projectAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 087 / 088
Soil and Water Conservation Measures
About this Report
Located in a coastal area Shenzhen has a South Asian tropical monsoon climate with an average annual rainfall of 1935.8 mm and is typically affected by 4 to 5 typhoons each year. This makes the region prone to
geological hazards and preventing soil erosion is a vital aspect of corporate social responsibility.Message from the
Chairman With adherence to an “ecology-first” principle Appotronics integrates the concept of harmonious coexistence between humans and nature into the development of soil and water conservation infrastructure. We are
committed to enhancing resilience to natural risks and advancing green infrastructure development. During the construction of the headquarters building Appotronics followed a site-specific and hazard-targeted ap-
proach to ensure that soil and water conservation facilities were built and utilized simultaneously with the main building structure. A professional institution was engaged to design detailed construction plans. The
Approaching Appotronics
project adopted a combination of engineering and vegetation-based measures supplemented by temporary protective actions to effectively prevent additional soil erosion caused by human activity. Tailored to the
specific characteristics of each area measures that we adopted include: installing vehicle washing stations to clean vehicles covering exposed soil with geotextiles before rainfall or high winds and planting grasses
and landscaping to stabilize surfaces. Through scientific planning and orderly construction the headquarters building achieved a total landscaped green area of 199.88 square meters with a 100% vegetation resto-
Special Topic 1 ration rate. These efforts have effectively mitigated the risk of soil erosion lowered operational risks and contributed to the Company’s long-term stable development.Special Topic 2
Strategic Leadership
with Good Governance
Precision Management
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity
New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together
Science Popularization
Together with Public Welfare
Appendix
Acceptance and filing of soil and water conservation facilities for the Appotronics Headquarters Tower.APPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 089 / 090
About this Report 04.Green Operations
Message from the Energy Management
The Company’s waste is mainly divided into three categories: recyclable non-recycla-
Chairman
ble and hazardous waste which are collected separately and delivered to recycling
Appotronics regards energy management and environmental protection as key drivers of
companies for compliance treatment. The Company verifies the business qualifications
Solid waste
long-term development. We are committed to creating a highly efficient and sustainable opera- of the recycling companies annually and signs relevant recycling contracts with them.treatment
Approaching Appotronics tional environment by continuously optimizing production and operational processes through ad- Additionally the Company pays monthly management fees to the property manage-
ment entity to ensure that the waste generated by the Company will not have any
vanced energy-saving technologies. We also actively promote waste recycling and resource circu- negative impact on the environment.larity to minimize the impact of our production on the environment.Special Topic 1
To achieve highly efficient energy management Appotronics continues to promote the establish-
ment and improvement of the energy management system and successfully passed the
ISO50001 certification again in 2024. Adhering to the concept of energy conservation and emis-
Special Topic 2 sion reduction to improve energy efficiency the Company incorporates energy management into Green Operation
daily production and management to systematically achieve energy conservation and consump-
tion reduction goals as scheduled.Appotronics insists on integrating green operations throughout all aspects of its work processes
Strategic Leadership
with Good Governance actively advancing carbon reduction and digital inclusivity. Appotronics conveys and communi-
Disposal of Three Wastes and Others cates information through comprehensive information system construction optimized online pro-
cess approval digital tools such as electronic receipts and invoices and emails to reduce the use
Precision Management
of office supplies such as paper ink and printers. Through these measures we could decrease
for Sustainable Prosperity
carbon dioxide emissions and environmental pollution by reducing the consumption of natural
Green Development for The domestic wastewater generated at the Company’s office is treated by the office
resources and the generation of waste so as to achieve sustainable development and environ-
building and industrial park property management entity and will be discharged into mental protection.Ecological Co-prosperity the municipal sewage network after meeting the standards through pre-treatment. As
Wastewater of the end of the reporting period a third-party testing agency tested the wastewater In 2024 Appotronics fully transitioned to digital invoices completely replacing paper invoices.New Quality Empowerment treatment generated by the Company’s production activities in accordance with the Limit Values
of Discharge Standard for Water Pollutants of Guangdong Province. The tested results Since digital invoices require neither printing nor photocopying they can greatly reduce paper
for World Connection
indicated that the Company’s industrial wastewater discharge complied with the consumption. Moreover the digital nature of digital invoices eliminates the need for physical
relevant standards.transport and storage thereby cutting carbon emissions generated from transportation and stor-
Care for Employees to The Company produces a small amount of waste gases during its production and age. According to statistics the Company issues approximately 77000 digital invoices annually on
Build the Future Together operation process mainly including tin-containing waste gas and non-methane total average saving a corresponding amount of paper and reducing logistics costs by tens of thou-
hydrocarbons. These gases are treated by the Company through UV photolysis activat-
Waste gas sands of RMB.ed carbon adsorption devices air purification equipment etc. According to the tested
Science Popularization treatment results based on the Limit Values of Emission Standard for Air Pollutants
(DB44/27-2001 Level 2 Standard) the emission concentration of waste gases from the In daily operations Appotronics places a strong emphasis on cultivating environmental awareness.
Together with Public Welfare
production and operation process has satisfied the local environmental protection Employees are encouraged to practice eco-friendly behaviors both at work and in their personal
standards.lives including prioritizing sustainable products and services. The Company has also implemented
The noise generated during the Company’s production and operation process is a series of green office initiatives to reinforce the environmental protection concepts. These green
Appendix Noise minimal. In March 2024 a third-party testing agency conducted tests on our produc-
office measures include among other things implementing waste sorting in public areas posting
treatment tion site according to the Emission Standard for Industrial Enterprises Noise at Boundary
(GB12348-2008) and concluded that all testing results met the emission standards. energy-saving signs promoting water conservation electricity-saving paper-saving reducing the
generation of office waste and enhancing recycling and reuse practices.APPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 091 / 092
About this Report 04
Message from the
Chairman
Approaching Appotronics
Special Topic 1
Special Topic 2
Strategic Leadership
with Good Governance
Precision Management
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity
New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together
Science Popularization New Quality Empowerment
Together with Public Welfare
Appendix for World ConnectionAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 093 / 094
About this Report New Quality Empowerment for World Connection
Message from the
Chairman
01.Quality Management
Approaching Appotronics
Product quality is the cornerstone of market success and the key to winning customer trust. Appotronics remains firmly committed to excellence in quality striving to stand out in a competitive landscape and achieve
sustainable growth. In 2024 the Company once again passed the ISO 9001 and IATF 16949 quality management system certifications demonstrating its adherence to quality management concepts of high standards
Special Topic 1 superior quality and operational efficiency. Upon these two internationally recognized systems Appotronics has reconstructed its internal quality management processes to streamline workflows clarify responsibilities
and optimize resource allocation thereby enhancing efficiency and coordination across departments.The Company has established a series of normative documents including the Appotronics QEH Management Manual the New Product Design and Development Management Regulations and the Software Quality
Special Topic 2
Management Methods which provide institutional support for new product development. At the same time the Company has achieved full-chain quality control from R&D to manufacture by building a laboratory
system and a quality monitoring framework ensuring excellence at every stage of the product lifecycle.Strategic Leadership
Adhering to a “zero-defect” quality culture Appotronics embeds quality control into every aspect of production management including real-time production monitoring intelligent control over equipment aging and
with Good Governance
5S visual management practices to ensure that every product meets the highest standards. The Company’ s products particularly in high-end core components automotive solutions and laser cinema projection
equipment have demonstrated exceptional performance and reliability. Therefore we earned widespread recognition from industry leaders such as SERES Geely Barco China Film Group and major international au-
Precision Management tomotive manufacturers. Furthermore the Company places strong emphasis on fostering a culture of quality awareness among its employees and has achieved 100% training coverage in product quality for all rele-
for Sustainable Prosperity vant personnel laying a solid talent foundation for robust quality management.Green Development for Case: Continuous improvement of quality personnel skills
Ecological Co-prosperity
In 2024 the Company organized a total of 45 quality-related training sessions and
New Quality Empowerment completed training for approximately 675 participants continuously improving the
for World Connection quality personnel’s knowledge of product quality and system-related skills.Care for Employees to
Build the Future Together
Science Popularization
Together with Public Welfare
Appendix
Consistently maintaining ISO9001 Quality Management System Certification
Consistently maintaining IATF16949 International Automotive
Quality Management System Certification.APPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 095 / 096
Rigorous Quality Control in the DQA Laboratory
About this Report
Appotronics’ DQA Laboratory is dedicated to ensuring comprehensive quality assurance in product design. Upholding stringent standards the laboratory oversees every link of the product lifecycle to deliver safer
more reliable and higher-quality products to society.Message from the
Chairman The DQA laboratory operates efficiently under the ISO/IEC 17025 international laboratory management system. It has been accredited by the China National Accreditation Service for Conformity Assessment (CNAS)
to issue CNAS reports that are credible to the public and recognized by the international community. The laboratory covers two key domains: consumer electronic products and vehicle electronic products with com-
prehensive testing capabilities spanning reliability optics safety electrical performance and functional testing. Moreover the laboratory has established a safety testing laboratory which introduces a series of inter-
Approaching Appotronics national standards such as IEC/EN/UL/CSA 62368-1. By embedding these globally leading safety standards throughout the product design process Appotronics ensures superior product performance and safety in an
all-around way.Special Topic 1 Laboratory certificate
International/ Authorized and accredited Profile of the authorized
Special Topic 2 National laboratory name and accredited agency Authorization level Authorization standard
Certificate/Plaque
UL Solutions is the most authorita-
Strategic Leadership tive safety testing and certification
with Good Governance agency in the United States and a
leader in the global safety industry.A series of standards such as
International WTDP Laboratory It engages in safety testing and WTDP&CTF2
Precision Management IEC/EN/UL/CSA 62368-1certification businesses all over the
for Sustainable Prosperity world. Products certified by UL
have high credibility in government
Green Development for agencies and consumer groups.Ecological Co-prosperity
New Quality Empowerment
for World Connection
Intertek as an international au-
Care for Employees to
thoritative testing institution and
Build the Future Together
third-party notary public office is
one of the largest consumer goods
International SATELLITE Laboratory Level 2&CTF2 The same as above
Science Popularization testing inspection and certifica-
Together with Public Welfare t ion inst i tut ions in the wor ld
renowned globally for its profes-
sionalism accuracy and integrity.AppendixAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 097 / 098
International/ Authorized and accredited Profile of the authorized
About this Report National laboratory name and accredited agency Authorization level Authorization standard
Certificate/Plaque
Message from the
Chairman
TüV SüD is one of the world’ s
leading testing and certification
Approaching Appotronics service providers that stands for
safety and quality in almost al l
areas of business and life. The TüV
Special Topic 1 logo on a product is equivalent to IEC/EN/UL 62368-1 CSA
a safety and quality credit card
International TüV SüD Authorized Laboratory Level 2 C22.2 No.62368-1 AS/NZS
and can serve as a passport to
62368.1 EN IEC 62368-1
enter the international market. UL
Special Topic 2 ITS and TüV are the top 3 author-
itat ive agencies recognized in
North America. UL ITS and TüV
Strategic Leadership are the top 3 authoritative agen-
with Good Governance cies recognized in North America.Precision Management
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity
New Quality Empowerment
for World Connection
Care for Employees to The International Electrotechnical
Build the Future Together Commission (IEC) is one of the
International Listed on the IEC official website CTF2 The same as above
three major international standard
organizations.Science Popularization
Together with Public Welfare
AppendixAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 099 / 100
International/ Authorized and accredited Profile of the authorized
About this Report Authorization level Authorization standard Certificate/PlaqueNational laboratory name and accredited agency
Message from the
Chairman
Approaching Appotronics
Special Topic 1 Testing standards related to
China National Accreditation Ser-
National CNAS Laboratory / projectors
vice for Conformity Assessment
Special Topic 2
Strategic Leadership
with Good Governance
Precision Management
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity
New Quality Empowerment
Intertek as an international au-
for World Connection
thoritative testing institution and
third-party notary public office is
Care for Employees to
Build the Future Together Appotronics-Intertek Strategic
one of the largest consumer goods
International / /Cooperation Laboratory testing inspection and certifica-
t ion inst i tut ions in the wor ld
Science Popularization renowned globally for its profes-
Together with Public Welfare sionalism accuracy and integrity.AppendixAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 101 / 102
Compliance Design Quality Honors
About this Report
Appotronics is committed to developing safe reliable and high-quality products. We design Appotronics has been awarded the “Category A Enterprise” by the China Quality Certification
products in strict compliance with global market access requirements with a focus on areas Center (CQC) which has been valid to date. This honor signifies the Company’ s outstanding per-
Message from the
including laser radiation optical biological safety electrical safety electromagnetic compatibility formance in product quality stability passing rate from supervision and random inspection and
Chairman
hazardous substances energy efficiency and environmental protection. capabilities in independent design. Appotronics has achieved industry-leading levels in quality
management smart manufacturing and environmental substance control.For the domestic market the Company’ s products have passed the national mandatory CCC cer-
Approaching Appotronics
tification national radio transmission equipment model approval certification voluntary national
energy conservation and environmental protection CECP certification environmental label certifi-
cation as well as product-specific certifications such as low blue light certification visual health
Special Topic 1 certification and low flicker-gold standard certification etc. For the overseas markets the Com-
pany’ s products have met the access requirements of various regions and obtained a number of
certifications including but not limited to CB cULus cETLus cTUVus FCC ID IC ID CE RED KC
Special Topic 2 MSIP and FDA registration.Furthermore throughout the R&D production packaging and transportation phases Appotron-
ics strictly complies with green environmental protection requirements defined in international en-
Strategic Leadership
vironmental regulations such as EU RoHS 2.0 REACH WEEE Directive and Packaging Directive
with Good Governance
94/62/EC. The Company fulfills its environmental responsibilities and reports/registers to relevant
departments.Precision Management
for Sustainable Prosperity Display of some authentication certificates The Company actively applies advanced quality management theories and digital technologies to
promote quality innovation and serves as an executive member of the Chief Quality Officer Pro-
Green Development for fessional Committee of the Guangdong Quality Inspection Association contributing to the
Ecological Co-prosperity high-quality growth of the industry.New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together
Science Popularization
Together with Public Welfare
AppendixAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 103 / 104
About this Report 02.Responsible Marketing Case Study 1: The Appotronics’ automotive division
received high recognition from customers
Upholding the customer-centric concept Appotronics is committed to eliminating information
Message from the barriers and establishing transparent and efficient communication channels. Through diverse ini-
Chairman tiatives the Company provides responsible marketing support to facilitate the smooth operation
and growth of our customers’ businesses.Approaching Appotronics In 2024 the Company organized a series of client engagement activities including product train-
ing sessions new product showcases key partner summits and participation in exchange meet-
ings to deliver detailed and accurate professional product information to customers thereby em-
powering customers with reliable and timely technical support. Through these initiatives Appo-
Special Topic 1
tronics has satisfied customers’ needs in all aspects and established deep trust and close cooper-
ation with customers to create a better future cooperatively.Special Topic 2
Case Study 1: The Appotronics’ automotive division
received high recognition from customers
Strategic Leadership
with Good Governance
Appotronics was honored as the “Excellent Supplier” by Geely Auto
Precision Management
for Sustainable Prosperity In 2024 Appotronics’ automotive division achieved breakthrough progress. In the pro-
cess of business development the automotive division actively engaged in industry ex-
changes and participated in various events to broaden customer communication chan-
Green Development for nels for advertising the Company’ s strengths in automotive optical technology and
Ecological Co-prosperity product reliability. According to statistics the automotive division participated in more
than 13 exhibitions and industry seminars throughout the year including CES and the
New Quality Empowerment Beijing International Automotive Exhibition and joined many industry associations such
for World Connection as the SparkLink Alliance the China Association of Plant Engineering – New Energy Ve-
hicle Promotion Center and the Shenzhen Automotive Electronics Industry Association.Care for Employees to With these efforts the automotive division contributed innovative ideas for automotive
Build the Future Together product development establishing closer collaboration with OEMs and industry peers.Thanks to outstanding product quality close cooperation with Geely’ s smart brand
Science Popularization and exceptional service Appotronics stood out from numerous suppliers and received
the 2024–2025 “Excellent Supplier” Award from Changxing Geely Auto Parts Co. Ltd.Together with Public Welfare
AppendixAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 105 / 106
About this Report Case Two: Appotronics’ dedicated display division Case Two: Appotronics’ dedicated display division
innovated customer engagement innovated customer engagement
Message from the In 2024 the Company’ s dedicated display division conducted 82 customer events
Chairman throughout the year including 12 core channel empowerment training sessions to pro-
vide professional guidance to customers including agents and integrators. For instance
during the launch of our flagship products S Pro series the dedicated display division
Approaching Appotronics hosted nine promotional events in major cities such as Beijing Qingdao Tianjin and
Shanghai. By offering product comparison demonstrations we could directly showcase
the products’ superior display performance which received widespread acclaim from
attending customers. Each session featured detailed new product introductions that
Special Topic 1 were delivered by the product department staff through which customers can gain a
deeper understanding of Appotronics’ technological and competitive advantages.In addition the dedicated display division also innovated its approach to client out-
Special Topic 2 reach. In Zhanjiang City and Maoming City it organized study-tour-style visits to local
tourist attraction operators bringing together investors designers directors and key
decision-makers. This approach created valuable opportunities for face-to-face inter-
action with potential clients and industry experts effectively laying the groundwork for
Strategic Leadership
future partnerships.with Good Governance
Precision Management
2024 S Pro Flagship New Product Appreciation Salon
for Sustainable Prosperity held by Appotronics’ Dedicated Display Division
Green Development for
Ecological Co-prosperity
New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together
Science Popularization
Together with Public Welfare
Appendix
2024 Core Partner Summit held by
Appotronics’ Dedicated Display DivisionAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 107 / 108
About this Report Case 3: Appotronics’ core household devices divi- Case 3: Appotronics’ core household devices divi-
sion went global actively sion went global actively
Message from the With the expansion of its overseas businesses the core household components divi-
Chairman sion by virtue of opportunities at overseas exhibitions engaged in face-to-face com-
munication with local customers to strengthen mutual understanding and cooperation.In January 2024 the division attended the Consumer Electronics Show (CES) in the
Approaching Appotronics
United States and the Integrated Systems Europe (ISE) in Spain. At the CES the divi-
sion accepted media interviews to highlight its technological advantages and reaffirm
its commitment to working with global industry leaders. At ISE the division showcased
Special Topic 1 its latest technologies and products significantly enhancing the brand’ s visibility in the
European professional audiovisual integration sector and boosting customers’ confi-
dence. In September the division participated in IFA Berlin (Internationale Funkausstel-
lung Berlin) once again followed by on-site visits to overseas customers to discuss co-
Special Topic 2 operation details and strengthen strategic alignment.Additionally the division offered tailored training programs based on different custom-
ers’ characteristics. These training programs focused on explaining technical principles
Strategic Leadership and advantages providing customers with comprehensive support to better under-
with Good Governance stand and apply Appotronics’ technologies and solutions.Precision Management
for Sustainable Prosperity
Appotronics participated in the ISE in Barcelona
Green Development for
Ecological Co-prosperity
New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together
Science Popularization
Together with Public Welfare
Appendix
Appotronics’ core household devices division communicated
with overseas media at CESAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 109 / 110
Customer Service Case 2: CINEAPPO’s high-quality services for dis-
About this Report
tributors and customersAppotronics upholds the principle of “creating value through service and shaping the futurethrough expertise” and remains committed to its customer-first philosophy of “attentive service vanced projection technology and support the development of China’ s film industryMessage from thewith genuine care” . Since 2019 the Company has been awarded the “Five-Star After-Sales Ser- while enhancing the movie-going experience for audiences.Chairmanvice Certification” under the Evaluation System for After-sales Service of Commodity (G-
In terms of customer service CINEAPPO provided high-efficiency service to customers
B/T27922-2011) due to the robust after-sales service system. In 2024 we retained this honor suc-
through its 400 and online hotlines. The 400 hotline received over 17000 calls and the
cessfully which underscored our excellence in service quality and professional capability.Approaching Appotronics online customer service team served more than 7500 customers handling over 40000
messages and processing more than 44000 recharge orders. By prioritizing efficient as-
To better meet customer needs Appotronics has established a comprehensive after-sales service
sistance to customers in resolving issues through phone and online customer service
network across major e-commerce platforms enabling seamless integration of online and offline we were able to prevent unnecessary costs associated with large venue technician
Special Topic 1 services and unifying pre-sales and after-sales support. At the same time we continue to en- repairs.hance service informatization expert-driven support and localization efforts to improve service
efficiency and customer satisfaction. Looking ahead Appotronics will remain true to our service
Special Topic 2 principle continuously optimizing service processes to deliver even more efficient and high-quality
experiences for every customer. 03.Information Security
Strategic Leadership Appotronics attaches great importance to the construction of information security systems and
with Good Governance Case 1: Formovie’s responsibility marketing monitoring implementation. We have formulated a complete information security system regula-
tions operation guidelines and related control measures to ensure that our information security
practices have regulations to follow and we can safeguard the confidentiality integrity and avail-
Precision Management Formovie maintains high-quality requirements for products implementing strict compli-
ability of the Company’ s information. The system and planning cover the strategy and control
for Sustainable Prosperity ance management quality control and supervision in every aspect covering R&D
design material supply production manufacturing sales logistics distribution and principles of information security and operation guidelines and control standards for the entire life
after-sales service so as to ensure product stability and reliability. Formovie has passed cycle of information processing. It includes all information security measures related to employ-
Green Development for the annual review by SGS and obtained the annual update of the ISO9001 quality ees’ work providing specific and clear guidance and standards for employees to ensure that their
Ecological Co-prosperity management system certificate. behavior complies with the Company’s requirements.New Quality Empowerment In October 2024 in recognition of its comprehensive product quality management The Company has also carried out various technological explorations and practices in the daily ex-
Formovie was honored with “the Second Prize for Quality Month” and “the Outstand-for World Connection ecution and monitoring process such as multi-factor authentication bastion host centralized log ing Planning Award for Quality Month” at Xiaomi’ s Ecosystem Quality Exchange Con-
auditing and monitoring etc. These measures effectively protect the Company’ s confidential
ference.Care for Employees to information with data integrity maintained so as to prevent internal and external threats from
Build the Future Together causing harm to the Company. As a result the reliability sustainability and reputation of the
Company’s operations have been enhanced.Science Popularization Case 2: CINEAPPO’s high-quality services for dis-
Appotronics continuously strengthens the network security construction through measures such as
Together with Public Welfare tributors and customers
network isolation internal and external firewalls transmission encryption and access authoriza-
tion ensuring information security and stable network operation. The Company provides internal
In 2024 CINEAPPO hosted four national roadshows aiming to serve customers succes-
Appendix centralized file storage and backup services for various core departments such as finance R&D sively where it showcased to industry customers the ALPD laser projection technolo-
gy VLED cinema screens and other products and technologies for sharing and popu- sales etc. in order to avoid the risk of loss of information assets due to hacker attacks or loss of
larization. These events aimed to invite more cinema customers to understand the ad- employee laptops. Moreover the Company has installed client and server antivirus and encrypted
security audit software to enhance data security measures for personal computers and servers.APPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 111 / 112
Customer Information Security Case 2: TISAX Certification Project for Appotronics
About this Report
Automotive Business
Appotronics recognizes that information security is fundamental to customer trust and essential
for long-term business success. Upholding the spirit of professionalism Appotronics is dedicated
Message from the To further enhance the construction of information security processes and improve
to providing customers with secure and reliable products and services.Chairman employees’ information security behavior and ensure that sensitive information of the
Company and customers is not leaked Appotronics initiated the TISAX AL3 certifica-
In 2024 Appotronics once again passed the ISO/IEC 27001 information security management
tion project in November 2023. This certification is valid for three years. TISAX certifica-
system certification. Our robust security practices have earned great trust and recognition from tion is a recognized standard that complies with the requirements of the European Au-
Approaching Appotronics
our customers particularly in the automotive optics sector. During the R&D process the Compa- tomobile Manufacturers Association (ACEA) and the German Association of the Auto-
ny has always adhered to the bottom line of information security and international security stan- motive Industry (VDA). Through TISAX certification we can ensure that the Company
dards ensuring that each stage of the process is safe and reliable. Moreover the Company also has met industry standards and satisfied compliance requirements in terms of its infor-
Special Topic 1 tailors information security solutions to customer requirements creating a solid line of defense to mation security management system thereby enhancing the trust relationship be-
tween the Company and its partners customers and suppliers to maintain the Com-
protect client interests.pany’s competitive advantage.Special Topic 2 In 2024 Appotronics successfully passed the annual ISO/IEC 27001 surveillance audit
ensuring the continued effectiveness of our information security management system
(ISMS) and ongoing compliance with the ISO 27001 international standards.Strategic Leadership
with Good Governance
Precision Management
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity
New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together
Science Popularization
Together with Public Welfare
Appendix
ISO27001 Information Security Management System CertificationAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 113 / 114
About this Report 04.Responsible Supply Chain Case: Regular communication with core suppliers
Appotronics places strong emphasis on building a responsible supply chain system firmly commit-
Appotronics is committed to building a resilient and collaborative supply chain. In 2024
Message from the ted to encouraging its suppliers to comply with ethical norms and applicable laws and regulations the Company conducted regular business and technical exchange sessions with its core
Chairman and to fulfill their responsibilities in environmental protection occupational health and safety. The partners to jointly explore industry trends and share insights on components and prod-
Company values collaboration with suppliers and aims to achieve a mutually beneficial and trust- ucts. This mechanism has helped us foster close long-term relationships with key sup-
worthy cooperation by delivering high-quality highly reliable and sustainable products. pliers ensuring the continuous and stable supply of critical components and laying a
Approaching Appotronics solid foundation for the Company’s sustainable growth.In 2024 Appotronics established a stable and efficient automotive supply chain through deep col-
laboration with and high-quality deliveries to leading domestic new energy vehicle manufacturers
such as Seres and Geely. The Company’ s automotive supply chain capabilities have successfully
Special Topic 1
passed stringent audits conducted by both domestic and international automobile manufactur-
ers which represents that we have met the global standards and the number of designated co- Green Supply Chain
operation relationships continues to grow which has laid a solid foundation for further market ex-
Special Topic 2 pansion. Appotronics actively promotes continuous improvement among its suppliers in key areas of social
and environmental responsibility including energy efficiency carbon emissions reduction waste
minimization sustainable sourcing and employee rights protection. The Company is also commit-
Strategic Leadership Supplier Management ted to enhancing supply chain transparency. The Company collaborates with suppliers to develop
with Good Governance implement and supervise improvement plans to ensure the effectiveness of measures.Appotronics attaches great importance to partnerships with suppliers and strategic collaborators.Upholding the principles of integrity and responsible procurement we sign the Partner Integrity To standardize environmental management among suppliers Appotronics has established the Precision Management
for Sustainable Prosperity Agreement with suppliers to control the procurement process from the source and prioritize envi- Control Regulations for Environmental Requirements of Suppliers and require suppliers to sign the
ronmentally friendly raw materials. At the same time Appotronics actively invests in core areas Supplier Social Responsibility Commitment and the Warranty for Restricted Use and Control of
and key segments of the industry chain integrating them into the operational system. Moreover Environmental Pollutants in order to protect the rights and interests of customers and consumers
Green Development for
the Company continuously strengthens the management of suppliers’ corporate responsibility and while amplifying the impact of environmental policies. At the same time Appotronics has issued Ecological Co-prosperity
standardizes procurement transactions to enhance the sustainable competitiveness of the supply the Supplier Code of Conduct on Social Responsibility holding non-compliant suppliers account-
chain. We work together with suppliers for common development and joint establishment of a able and requiring them to take rectification measures.New Quality Empowerment
for World Connection responsible value chain. In addition the Company has established a mechanism for evaluating qualified suppliers which
With the growing maturity of the automotive optics business in 2024 Appotronics established a evaluates supplier performance comprehensively and categorizes suppliers into excellent suppliers
Care for Employees to
comprehensive management system aligned with automotive-grade standards. We introduced an qualified suppliers and suppliers to be improved. Suppliers that present a low environmental risk
Build the Future Together
advanced supplier management system and deployed professional teams responsible for each rating or receive an environmental performance score below 65% will be deemed unqualified even
automotive module to implement rigorous oversight of suppliers within the automotive optics if their total score exceeds 60%. This approach ensures that environmental and social responsibili-
Science Popularization product line. Owing to outstanding supply chain management capabilities Appotronics gained ty standards are embedded at the source of the supply chain.Together with Public Welfare
high recognition from numerous automotive clients at home and abroad successfully initiating
mass production and delivery.AppendixAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 115 / 116
About this Report 05.Conflict Minerals
Appotronics is firmly committed to responsible mineral sourcing practices. The Company signs the
Message from the Commitment Letter for Not Using Conflict Minerals with suppliers and strictly adheres to the Due
Chairman Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and
High-Risk Areas of the Organization for Economic Cooperation and Development (OECD). The
Company ensures that all the raw materials used in the Company’ s products and across its
Approaching Appotronics supply chain are free from minerals sourced from conflict-affected regions.The Company explicitly declares its compliance with international regulations and relevant industry
standards and resolutely rejects the use of conflict minerals. At the same time the Company
Special Topic 1
also mandates that all suppliers conduct due diligence on the origin and traceability of minerals
contained in their products especially gold (Au) tantalum (Ta) tin (Sn) tungsten (W) cobalt
(Co) and mica to reasonably ensure that these minerals are sourced in alignment with the OECD
Special Topic 2 Due Diligence Guidance or other widely recognized frameworks.Strategic Leadership
with Good Governance
Precision Management
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity
New Quality Empowerment
for World Connection
The Supplier Code of Conduct on Social Responsibility of Appotronics
Care for Employees to
Build the Future Together
Science Popularization
Together with Public Welfare
Appendix Commitment Letter for Not Using Conflict Minerals for SuppliersAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 117 / 118
About this Report 05
Message from the
Chairman
Approaching Appotronics
Special Topic 1
Special Topic 2
Strategic Leadership
with Good Governance
Precision Management
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity
New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together Care for Employees to
Science Popularization
Together with Public Welfare
Appendix Build the Future TogetherAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 119 / 120
About this Report Care for Employees to Build the Future Together
Message from the
Chairman
01.Employee Rights and Interests Age composition
Approaching Appotronics
Total number of employees Total number of employees Number of employees
aged below 30 years old aged 30-50 years old aged above 50 years old
Upholding the “people-oriented” philosophy Appotronics is committed to comprehensively safe-
guarding employees’ rights and interests. The Company has established a robust human resources
Special Topic 1 management framework offering employees competitive compensation and benefits high-quali- 341 Person 1064 Person 34 Person
ty training opportunities and a human-centric working environment aiming to improve employ-
ees’ overall quality of life and work experience. At the same time the Company continues to Educational background composition
Special Topic 2 strengthen its internal communication mechanisms to foster a fair open and equitable work-
place culture. Number of employees holding a Number of employees holding Number of employees holding
junior college diploma or below bachelor’s degrees master’s degrees or above
As of December 31 2024 Appotronics has 1439 employees including 498 female employees
Strategic Leadership
with Good Governance accounting for 34.61% of the total; and the proportion of ethnic minority employees accounts for
624 Person 629 Person 186 Person
approximately 9.8%. These data reflected the Company’ s emphasis on and inclusiveness of
diverse talents.Precision Management Total number of employees
for Sustainable Prosperity
Employee composition in 2024
Green Development for 1439 Person
Ecological Co-prosperity Gender Composition
New Quality Empowerment At the same time Appotronics established its trade union in 2017 electing worker representatives
for World Connection Female employees Male employees and establishing a Workers’ Congress. Important policies involving employee benefits labor rights
and personal safety should be decided democratically through the employee representative as-
Care for Employees to 498 Person 941 Person sembly. The employee representative assembly not only protects employees’ rights and interests
Build the Future Together but also serves as a vital communication bridge between the Company and employees. It collects
feedback from customers and supports continuous improvement in employees’ work and life by
Science Popularization
Composition of employment types contributing to offering more competitive remuneration high-quality training and a humanized
Together with Public Welfare
working environment.Total number of Total Consultants
Appendix full-time employees
1435 Person 4 PersonAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 121 / 122
Equal Employment
About this Report
Appotronics actively attracts talent through diversified recruitment channels and values individuals’ unique experiences and backgrounds to foster a vibrant team. The Company strictly complies with the Labor Law
of the People’ s Republic of China and all applicable domestic and overseas labor regulations. We have integrated the concept of equality and non-discrimination into different HR stages including employee recruit-
Message from the
ment onboarding promotion and departure and firmly oppose any form of employment discrimination which has led to a more scientific and reasonable employment mechanism. All employees are offered equal
Chairman
and inclusive development and promotion opportunities regardless of gender nationality age ethnicity religious beliefs disability status sexual orientation or family background. The use of child labor or forced
labor is also explicitly prohibited. During the reporting period the Company achieved a 100% signing rate of employment contracts.Approaching Appotronics
In human resources management the Company is subject to the principles of fairness and impartiality talent-position matching and avoidance. We insist on open recruitment equal competition and selection of
the best candidates avoiding discrimination against gender ethnicity region or religious beliefs. We select and allocate appropriate employees based on job qualifications. At the same time we prohibit direct rela-tives from working in the same line of business to ensure the fairness and transparency of work processes. During the reporting period Appotronics received multiple honors including “China Best Employer AwardSpecial Topic 1 2024 – China Best Employer in Shenzhen” issued by Zhaopin and “The Award of Top 20 Youth Friendly Employers in 2024” issued by Ciwei.Special Topic 2
Strategic Leadership
with Good Governance
Precision Management
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity
New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together
Science Popularization
Together with Public Welfare
AppendixAppotronics was honored as the “China Best Employer Award 2024 – China Appotronics was honored as the “The Award of Top 20 Youth FriendlyBest Employer in Shenzhen” issued by Zhaopin. Employers in 2024 ” issued by Ciwei.APPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 123 / 124
Case 1: Strengthening international talent exchange Case 1: Strengthening international talent exchange
About this Report
and collaboration and collaboration
Message from the As a representative of innovative enterprises in Nanshan District Shenzhen Appotron- In July 2024 Appotronics participated in a dedicated job fair under the same program.Chairman ics actively participated in the “2024 Overseas Students Explore Nanshan” program. In The Company’ s booth attracted significant interest from overseas students. Through
this program we welcomed students from globally renowned universities including the in-depth conversations about job opportunities company operations technological de-
University of Oxford Cornell University and New York University to Appotronics for a velopment and career paths students gained a strong impression of Appotronics’ ea-
Approaching Appotronics three-day corporate visit and study tour. The Company assigned senior product man- gerness to attract excellent talent. From October to December Appotronics also orga-
agers and R&D backbones to mentor the students through innovation-themed practic- nized overseas campus recruitment events and held online recruitment talks at univer-
es based on Appotronics’ core technologies encouraging them to define products and sities in the United Kingdom the United States and the Asia-Pacific region which
demonstrating products’ application scenarios and market values for them. This study have attracted a large number of outstanding talents for our cutting-edge technology
Special Topic 1 tour deepened their understanding of Appotronics’ innovative capabilities and sparked research and development and international business expansion.valuable ideas through collaborative dialogue.Special Topic 2
Strategic Leadership
with Good Governance
Precision Management
for Sustainable Prosperity
Project members engaged in the two-day study tour activities
Green Development for
Ecological Co-prosperity
New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together
Science Popularization
Together with Public Welfare
Appendix
The study achievements of the project members won
the “Product Innovation Award”APPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 125 / 126
Case 2: Strengthening industry-university collabora- Case 2: Strengthening industry-university collabora-
About this Report
tion for scientific research and talent cultivation. tion for scientific research and talent cultivation.Message from the In July 2024 members of the Tailored Education and Elite Cultivation Program from In the same year Appotronics established an internship base in collaboration with the
Chairman the Department of Electronic Engineering at Tsinghua University visited Appotronics Southern University of Science and Technology. The Southern University of Science and
under the leadership of the deputy director of the department. The Tailored Education Technology whose disciplines such as materials science engineering and computer
and Elite Cultivation Program aimed at nurturing top innovative talents for national science are ranked among the top 1% of ESI globally is a national “Double First-Class”
Approaching Appotronics strategic needs and advancing cutting-edge technology development by inspiring stu- university and a pilot university for comprehensive higher education reform. In 2024 it
dents’ professional aspirations broadening their horizons and fostering their research became a vital partner of Appotronics in talent recruitment and academic collabora-
capabilities and innovative thinking. Appotronics R&D managers engaged in in-depth tion.discussions with faculty and students providing a “second classroom” that showcased
Special Topic 1 innovative R&D achievements and engineering practices thereby developing students’ As of now Appotronics has established internship bases with several well-known do-
comprehensive competencies and innovative abilities. mestic universities such as Tsinghua University Harbin Institute of Technology (Shen-
zhen) Shenzhen University and Harbin Normal University These partnerships support
talent cultivation through collaborative research projects enterprise visits and intern-
Special Topic 2 ships. Through such cooperation Appotronics helps university graduates explore cut-
ting-edge technologies and innovative applications and quickly adapt to the real work
surroundings of industrial sector from academic research environment.Strategic Leadership
with Good Governance
Precision Management
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity
The group photo of students and faculty from Tsinghua University’s
Department of Electronic Engineering with Appotronics’ hosting staff
during their visit
New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together
Science Popularization
Together with Public Welfare
Appendix
The deputy director of the Department of Electronic Engineering and In 2024 Appotronics collaborated with the Southern
the head of the Tailored Education and Elite Cultivation Program University of Science and Technology to provide internship
presented commemorative gifts practices for students.APPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 127 / 128Safeguarding Employee Benefits In addition to the payment of the statutory “five social insurances and one housing providentAbout this Report fund” for employees the Company also purchases commercial insurance including accident
insurance disease death insurance and critical illness insurance for all employees to further safe-
Appotronics actively improves its compensation and benefits system establishing a compensation
guard their benefits. Furthermore the Company has issued the Regulations on Care for Employ-
system that is “internally fair and externally competitive” . Under the distribution principle that
Message from the ees and Benefits Management and the Employee Handbook stipulating various paid leave sys-“distribution according to work is dominant giving priority to efficiency with due consideration toChairman tems and employee welfare programs. We emphasize balancing employees’ work and life to en-fairness and sustainable development” we provide employees with reasonable and competitive
hance their work enthusiasm.compensation.Approaching Appotronics The Company has established a performance-oriented incentive system and implemented a Employee Benefitsclosed-loop mechanism of “goal setting – process coaching – multi-dimensional evaluation – de-velopment application” . Through the effective implementation of the performance management保
Special Topic 1 system employee performance evaluations are conducted twice a year to help employees con-
tinuously improve their work capabilities and performance. We also implement a perfor-
Six social insurance Paid leave Flexible Overtime Physical Housing Free shuttle Team
mance-oriented bonus distribution system to incentivize teams and individuals with excellent per- funds and one housing working hours meal allowance examination for talents service building
provident fund
Special Topic 2 formance. For core employees who demonstrate outstanding performance and potential for de-
velopment the Company also provides more career development opportunities through measures
such as promotions skills training and position duty expansion. In addition the Company has es-
Strategic Leadership tablished an honor recognition incentive to commend outstanding teams and individuals who Holiday Gifts and Birthday Family Shenzhen household Entertainment Innovation Talent
care benefits wishes care registration activities atmosphere service
with Good Governance have made significant contributions.Precision Management
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity
New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together
Science Popularization
Together with Public Welfare
Appendix
The Company renewed the com- 2024 health checkup
Recognition of 2024 outstanding teams mercial insurance for all employees for employeesAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 129 / 130
Equal Communication and Exchange
About this Report
Appotronics places great emphasis on employee communication and feedback improving the
communication mechanism through various channels. The Company encourages employees to
Message from the
Chairman offer suggestions related to company operations and business optimization through both formal
and informal channels including annual all-staff communication meetings communication meet-
ings for new graduates and performance coaching and evaluation discussions in order to help
Approaching Appotronics improve performance and optimize efficiency.The Company’ s annual meeting as an important annual event offers employees the opportunity
to communicate face-to-face share each other’ s experiences and ideas and enhance mutual
Special Topic 1 understanding and trust. At the same time the Company can also take this opportunity to
convey the Company’ s strategic planning and future development direction to employees en-
hancing employees’ sense of belonging and mission. Furthermore through regular performance
Special Topic 2 coaching and communication with each employee at least once per quarter employees can
better align with their positions department and company goals continuously improving and
enhancing themselves.Strategic Leadership
with Good Governance
Precision Management
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity
New Quality Empowerment
for World Connection
Care for Employees to Communication meetings for new graduates
Build the Future Together
Science Popularization
Together with Public Welfare
Appendix
2024 Annual Meeting on the theme of
“Starting a New Journey Creating a New Future”APPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 131 / 132
About this Report 02.Employee Development Aurora
Program
Appotronics provides abundant and diversified learning resources and a sound
Message from the training system to help employees continuously learn and grow. Through diverse
Chairman
empowerment tools employees can be motivated to learn continuously improve
work efficiency and realise their self-worth to the maximum. Sharp Light
Approaching Appotronics Program
Middle
Growth Pathway Management
Special Topic 1 Training
With a focus on employees’ personal growth and Rising Light
career development Appotronics has established a Program
dual-channel career development sequence including * This program is an extreme-
Special Topic 2 Grassroots ly important talent training
management development channels and professional Management program for the team eche-
development channels to provide employees with a Training lons aiming to cultivate key
clear promotion path. The Company offers detailed Star Light middle-level management.Strategic Leadership
career development guidance to employees to help
with Good Governance Program
them understand their development direction and * It is dedicated to helping
Targeted Reserve
goals. At the same time through the position and * This program is an import- middle management better
Precision Management Management ant talent training project bridge the gap convey con-grade system the Company outlines specific qualifi-
Training a iming to cu l t ivate the fidence in v i c to ry and for Sustainable Prosperity cation standards including tenure performance
backbone of the ta lent achieve organizational goals.skil ls and other dimensions helping employees echelons.Green Development for achieve self-development to grow with the Compa- * This program is a key talent
Ecological Co-prosperity ny. Fresh Graduate cultivation program aiming * It is dedicated to helping
Training to develop the reserve force grassroots management
The Company has built a series of talent training sys- in the talent echelons. better understand and align
New Quality Empowerment w i t h b u s i n e s s g o a l s tems for Aurora Sharp Light Rising Light and Star
for World Connection * This program is the source * It is dedicated to helping manage and coach subordi-Light and created all-around training plans tailored project for long-term talent reserve management en- nates solve business prob-
for fresh graduates reserve cadres technical back- cultivation and the corner- hance their comprehensive
Care for Employees to lems and lead by example
bones grassroots managers and middle and senior stone of talent echelons. abilities and grow towards to embody corporate cul-
Build the Future Together
managers. By the end of 2024 we will have offered the direction of compound ture.* It aims to help fresh gradu-
the Star Light program in eight phases the Rising talents so as to increase the
Science Popularization ates quickly adapt to job density of team talents.Light program in two phases the Sharp Light pro-
Together with Public Welfare requirements and achieve role
gram in three phases (including the R&D manage- transformation on the themement special training camp) and the Aurora program of “team integration im-Appendix in one phase. These programs have not only achieved provement by learning andgood results in talent development and talent pipe- capability accumulation”.line construction but also provided clear guidance for
talent growth in the management channel.APPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 133 / 134
Employee Dual-Channel Development Sequence
About this Report
Message from the Management growth pathway Professionalism growth pathway
Chairman M Sequence P Sequence
Approaching Appotronics
The Group’s Chairman and CEO Authority expert
Special Topic 1
Senior manager
Special Topic 2
Expert/Senior Expert
Strategic Leadership Middle manager
with Good Governance
The 8th Appotronics Star Light Talent Development Program
Precision Management
for Sustainable Prosperity Grassroots manager Core staff
Employee Training
Green Development for
Ecological Co-prosperity
Appotronics builds a distinctive training system architecture aimed at supporting organizational
development individual advancement and enhancing organizational capabilities. It focuses on
New Quality Empowerment promoting organizational performance improvement and achieving business results by designing
for World Connection training programs and developing learning content with a problem-solving approach. Through the
three-level training system (company level department level position level) the Company pro-
Care for Employees to
Experienced employees motes the construction of a learning organization and creates a positive training-sharing atmo-Build the Future Together sphere to establish a system for employees’ continuous improvement of capabilities. The training
operation system through a closed-loop operation of four main links ensures that the quality
Science Popularization
and effectiveness of learning products have been unanimously recognized with all training feed-
Together with Public Welfare
back scoring over 9.2 points (out of 10 points).Appendix
NewcomersAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 135 / 136
The Company’s Training System Architecture
About this Report
Message from the Supporting Fostering Accumulating
Chairman organization personal organizational
development growth capacity
The Company continuously optimizes core training programs including core courses on
Approaching Appotronics middle-level leadership essential courses on grassroots management and professional
In terms courses on skills training. In addition we also constantly develop and improve course
of course system systems such as the Rising Light course system Star Light course system general
development competency course system of Meta Ability Classroom and position-specific course
systems based on job learning paths.Special Topic 1
Requirement solution organization for and feedback
analysis planning implementation evaluation
Special Topic 2
Strategic Leadership
with Good Governance
Precision Management
for Sustainable Prosperity Three-level Lecturer system Resource library
course system construction
As of 2024 the Company employed 660 teaching lecturers with a well-operating
three-level course system at the Company/center/department levels. Over the past
Green Development for
Regarding the three years more than 80 certified lecturers have become certified lecturers of the
Ecological Co-prosperity Company. The Company’s internal/external teaching resources library is under continu-lecturer system
ous maintenance and update. The management system is continuously upgrading with
development
the well-coordinated division of labor among training HRBP and department learning
New Quality Empowerment committees. The training system as basically complete can meet the current learning
and development needs.for World Connection Training management division system
Care for Employees to
Build the Future Together
Science Popularization
Together with Public Welfare IT platform construction/training management system
In 2024 the total training duration for employees was approximately 16824 hours with an aver-
Appendix age training duration of about 22.21 hours per person (for employees of the parent company
only). In addition to help new employees integrate into the Company more quickly and adapt to
their job positions the Company organizes monthly new employee training camps which cover Training management positioning
over 160 people cumulatively throughout the year.APPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 137 / 138
Case: 2024 Special Program for Automotive Capa-
About this Report 03.Care for Employees
bility Enhancement of Appotronics
Appotronics strives to enhance employees’ sense of belonging stimulate their enthusiasm forMessage from the In 2024 the Company launched the special training program of “2024 Automotive Ca- work and unleash their creativity. In 2024 the Company organized a series of team-buildingChairman pability Enhancement” to equip employees with the professional skills required by new events including “International Women’ s Day Celebrations” “Dragon Boat Festival Food Fair”
industries and new businesses. Through this training program employees could broad-
and “Employee Birthday Party” . These activities provided opportunities for employees to con-
en their systematized knowledge of quality management systems in the automotive
nect share and build mutual trust beyond daily work. At the same time the Company’ s labor
Approaching Appotronics industry and enhance their capabilities of introducing and mastering the key audit
points of standard requirements. The program also focused on improving employees’ union establishes various interest clubs such as yoga basketball badminton book reading and
ability to identify analyze and solve problems in the case of unstable quality of new outdoor activities and organizes regular events such as book sharing sessions and hiking trips to
products as well as the ability to identify and avoid risks in the early stage so as to help employees relax physically and mentally while enhancing team collaboration and work effi-
Special Topic 1 effectively support the rapid development of the Company’s new business. ciency.The Company also cares for employees in difficulty and has formulated the Trade Union Love As-
sistance Fund Management Measures. If an employee is hospitalized due to illness or encounters
Special Topic 2
sudden accidents natural disasters or man-made disasters that cause difficulties for the employ-
ee’ s family the Company’ s trade union will provide the employee with a contingency fund at its
Strategic Leadership discretion. Since the implementation of this initiative the Company has helped nearly 10 employ-
with Good Governance ees and their families.Precision Management
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity
2024 Special Program for Automotive Capability
New Quality Empowerment Enhancement of Appotronics
for World Connection
Care for Employees to
Build the Future Together Case 2: CINEAPPO helped employees enhance busi-
ness skills and awareness of rights and interests
Science Popularization
Together with Public Welfare
With continuous advancements in technology many new applications emerged in 2024
for the film industry such as LED cinema screens. To enable all employees to better
understand cutting-edge technology the Company organized a training session titled
Appendix
“LED Development and Product Training” . In addition the Company regularly holds the
training of the annual final settlement titled “ Annual Individual Income Tax” for em-
ployees to maximize their rights and interests.International Women’s Day CelebrationsAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 139 / 140
About this Report
Message from the
Chairman
Approaching Appotronics
Special Topic 1
Special Topic 2
Strategic Leadership
with Good Governance
Dragon Boat Festival Food Fair Badminton Club - Regular badminton activities
Precision Management
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity
New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together
Science Popularization
Together with Public Welfare
Appendix
Employee Birthday Party Reading Club - Book Sharing SessionAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 141 / 142
About this Report Case: CINEAPPO enriched employee’s life
Message from the
Chairman
Approaching Appotronics
Special Topic 1
Special Topic 2
Strategic Leadership
with Good Governance
Outdoor Club - Luofu Mountain Hiking Activity
Precision Management
for Sustainable Prosperity Case: CINEAPPO enriched employee’s life
Green Development for
Ecological Co-prosperity
New Quality Empowerment In April 2024 the 14th Beijing International Film Festival Filmmakers’ Fun Run was held
for World Connection at the Beijing Workers’ Stadium. The Company’ s subsidiary CINEAPPO participated in
the event again. During the competition CINEAPPO employees demonstrated remark-
Care for Employees to able cohesion and collaboration fearlessly overcoming challenges with unwavering de-
Build the Future Together termination. Their participation resulted in notable achievements. Through involvement
in this event CINEAPPO employees not only showcased their healthy and positive atti-
tude but also embodied their continuous pursuit of excellence. Furthermore through-
Science Popularization
out 2024 CINEAPPO also provided employees with regular fitness opportunities
Together with Public Welfare
including weekly badminton sessions and twice-weekly yoga classes greatly enriching
employees’ physical well-being.Appendix
CINEAPPO employees participated in the 14th Beijing
International Film Festival Filmmakers Fun RunAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 143 / 144
About this Report 04.Safety and Health Indicators Unit 2024
Appotronics always prioritizes work safety. We take the construction of a safety-oriented scientif-
Message from the ic and technological enterprise as the main line actively shouldering the main responsibility of the Number of special
Chairman
enterprise. We continuously innovate safety management measures to ensure the effective imple- occupational Person 19
mentation of legal work safety responsibilities and conduct in-depth investigations to eliminate disease examinations
safety hazards and ensure safe operation through strengthened responsible inspections so as to
Approaching Appotronics
solidify the safety defense line to provide a solid foundation for the Company’ s stable growth
and development.Special Topic 1 Enhanced safety Number of deaths from
Person
Indicators Unit 2024 protection
0
occupational diseases
Special Topic 2
Particularly serious
Incident 0
accidents
Strategic Leadership Number of deaths from
with Good Governance Person 0work-related injuries
Major accident Incident 0
Precision Management Work safety
for Sustainable Prosperity accidents
Significant accident Incident 0
Green Development for
Ecological Co-prosperity
Safety training coverage % 100
Minor accident Incident 0
New Quality Empowerment
for World Connection
Care for Employees to Safety hazard 100 Safety culture%
Build the Future Together elimination rate construction
Science Popularization
Together with Public Welfare Number of safetyWork safety Time
emergency drills 2 Number of participants in
Person 680
safety training
Appendix
Number of participants in
Person 680
safety emergency drillsAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 145 / 146
Work Safety The Company conducts monthly safety inspections and by the end of December 2024 198
About this Report hidden dangers were identified and all rectifications completed.Appotronics continuously enhances its safety management mechanisms and promotes the con-
month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
struction of a comprehensive work safety system. The Company has established the Safety Man-
Message from the
agement Committee with the Safety Management Office subordinated thereto. The R&D center
Chairman Identified safety 27 26 36 14 20 21 18 7 7 9 6 7 198
and supply chain center are responsible for the specific implementation of safety initiatives and accident hazards
they have signed the 2024 safety responsibility letter achieving a 100% signing rate to reinforce
Number of
Approaching Appotronics the Company’ s safety efforts. The Company has implemented a dual prevention mechanism and
2726361420211877967198
rectifications
established various regulations including the Three Simultaneous Management System the Work
Safety Responsibility Regulations the Fire Safety Management Regulations the Hazard Source Rectification 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
rate
Management Regulations the Accident Investigation Report the Female Employee Safety Protec-
Special Topic 1
tion Control Regulations and the Labor Protection Articles Management Regulations.At the same time to prevent safety risks and enhance emergency response capabilities the Occupational Health
Special Topic 2 Company comprehensively investigates safety hazards and conducts regular safety inspections to
Attaching great importance to the physical and mental health of employees Appotronics has es-
eliminate accident hazards. In addition we also conduct post-accident investigations and analyze
tablished a comprehensive employee health prevention system and formulated regulations such
response and prevention measures. Furthermore we have developed emergency preliminary plans
as the Regulations on Occupational Health Management and the Regulations on Identification and
Strategic Leadership and simulated accident processes to test the feasibility of these plans and have conducted
Control of Occupational Diseases to ensure the occupational health of employees. The Company
with Good Governance emergency drills to evaluate the reliability of our emergency response capabilities. In 2024 the
organizes employees to participate in annual occupational health examinations regularly with
Company organized various internal safety inspections through which we identified a total of 198
employee health records established and has passed the ISO45001 Occupational Health and
Precision Management safety accident hazards and completed the rectification of 198 accident hazards achieving a
Safety Management System Certification.for Sustainable Prosperity 100% rectification rate of safety accident hazards.In 2024 the Company experienced no suspected cases of occupational diseases or acute occu-
Green Development for pational disease incidents throughout the year. There are no significant occupational disease haz-
Ecological Co-prosperity ards in the existing office environment and the overall risk of occupational diseases is effectively
controlled.New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together
Science Popularization
Together with Public Welfare
Appendix
The Company organized employees to The Company won second place in the Occupational
Injury Prevention Knowledge Competition for
ISO45001 Occupational Health and Safety Management System Certification take occupational health examinations High-Risk Operations Personnel in Bao’an DistrictAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 147 / 148
Safety and Health Culture The Company’ s Fuyong factory carries out a series of work safety month activities every year to
About this Report promote a safe production culture. In the national “Work Safety Month” in June 2024 the Com-pany launched a work safety training activity with the theme of “Everyone Considers Safety Ev-The construction of a safety culture helps to enhance employees’ safety awareness and safetyeryone Knows Emergency Response” which was closely related to the theme of Work Safety
literacy. Appotronics popularizes safety knowledge and safe operating procedures to all employ-
Message from the Month. The Company’ s Fuyong factory actively identifies potential hazards in the production op-
ees through various forms of measures such as safety training seminars regular safety drills and
Chairman eration process. It has formulated different emergency preliminary plans and conducted emer-
safety culture promotion month activities in order to improve employees’ safety awareness and
gency drills such as fire emergency drills chemical leakage emergency drills safety evacuation
emergency response capabilities. The Company’ s safety culture training covers all departments
emergency drills etc. to enhance employees’ ability to deal with emergencies and popularize rel-
Approaching Appotronics and positions. We develop tailored safety culture training plans according to different job con- evant safety knowledge during the emergency drills.tents and risk characteristics such as the training of “Cardiopulmonary Resuscitation (CPR)” to
ensure that employees fully grasp various safety operating procedures and maintain high vigilance
and sense of responsibility at all times. In 2024 the Company conducted 12 monthly evaluations.Special Topic 1
Safety interface personnel in each department were able to organize evaluation data in accor-
dance with the Appotronics Security Management Quantitative Evaluation Measures and imple-
ment them accordingly.Special Topic 2
Strategic Leadership
with Good Governance
Precision Management
for Sustainable Prosperity
Fire Emergency Drill
Green Development for
Ecological Co-prosperity
Safety Training
New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together
Science Popularization
Together with Public Welfare
Appendix
Personal Protective Equipment Training Emergency Evacuation Drill for SafetyAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 149 / 150
About this Report 06
Message from the
Chairman
Approaching Appotronics
Special Topic 1
Special Topic 2
Strategic Leadership
with Good Governance
Precision Management
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity
New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together Science Popularization
Science Popularization
Together with Public Welfare
Together with Public Welfare
AppendixAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 151 / 152
About this Report Science Popularization Together with Public Welfare
Message from the
Chairman Enterprises should not only pursue commercial value but also convey values and warmth to soci-
ety as vital contributors to social responsibility. In 2024 Appotronics remained committed to the
philosophy of “Technology for Good” and made meaningful contributions in three key areas of
Approaching Appotronics science popularization education social welfare and biodiversity conservation by leveraging its
advantages in technology resources and platforms so as to inject new vitality into societal prog-
ress.Special Topic 1
Special Topic 2
Strategic Leadership
with Good Governance 01.Science Popularization
Precision Management Education
for Sustainable Prosperity
In 2024 Appotronics actively promoted science popularization education by utilizing its exhibition
Green Development for hall as a public learning platform. We presented knowledge about semiconductor laser technology
Ecological Co-prosperity in an accessible and understandable manner to visitors from across the country especially ado-
lescents. These activities not only sparked public interest in semiconductor lasers but also laid a
strong foundation for nurturing future innovators and planted seeds of curiosity about science
New Quality Empowerment
for World Connection and technology in the hearts and minds of visitors.Besides becoming an off-campus practice education camp (base) for the Primary school stu-
Care for Employees to dents in Nanshan District Shenzhen the Company collaborated with numerous institutions and
Build the Future Together organizations to carry out multiple science-themed activities targeting adolescences and students
of Guangdong-Hong Kong-Macao Greater Bay Area which included the Nanshan District Science
Science Popularization Popularization Alliance Tsinghua University Shenzhen Senior High School Nanshan Foreign Lan-
Together with Public Welfare guage School Hong Kong and Macao Youth Greater Bay Area Study Tours Tibet Vocational Tech-nical College Huazhong University of Science and Technology the “Nanshan Exploration Pro-Appendix gram” for International Students and the Azure Coast Community in Nanshan District etc.In 2024 the Company’ s exhibition hall was open to the public for free receiving a total of 8821
visitors in 341 batches including 944 adolescent visitors in 39 batches. Children’s Science Popularization ActivitiesAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 153 / 154
About this Report
Message from the
Chairman
Approaching Appotronics
Special Topic 1
Special Topic 2 Social Practice Activities for Universities
Case 1: Primary school students met the Case 2: International cooperation in
Strategic Leadership
technology dream science popularization education
with Good Governance
Precision Management In May 2024 Appotronics received 30 primary school students from Shenzhen Nanshan In 2024 the Company received six groups of students from South Korea comprising aLixiang School. The Company delivered an interactive course titled “Laser Science Ex- total of 187 visitors. Through interactive presentations and immersive demonstrationsfor Sustainable Prosperityploration” in which Appotronics staff explained engaging concepts such as the nature these students expanded their technological horizons and strengthened their passion
of light human vision and the RGB color model. These students explored the invention for scientific exploration thereby promoting international scientific and cultural ex-
Green Development for and applications of semiconductor laser light sources and witnessed their transforma- change. This cooperation provided valuable experience for the Company’ s international
Ecological Co-prosperity tive impact across home entertainment education and other sectors. With light and science popularization education efforts. Moving forward the Company will deepen
shadow changing into vivid images through the magic of technology this hands-on partnerships with overseas academic institutions to promote the globalization of semi-
learning experience inspired students’ enthusiasm for science and planted seeds of cu- conductor laser technology education.New Quality Empowerment riosity about future technologies.for World Connection
Care for Employees to
Build the Future Together
Science Popularization
Together with Public Welfare
Appendix
The South Korean student delegation visited AppotronicsAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 155 / 156
02.Social Welfare and In August 2024 Appotronics donated projectors to the Portuguese Volunteer Confederation (CPV About this Report Confedera??o Portuguesa do Voluntariado) to support its volunteer program operations. Estab-
lished in 2010 CPV is an umbrella organization comprising 45 member associations representing
International Communication 1.2 million volunteers across Portugal. The donated projector was quickly put into use upon deliv-
Message from the ery serving as an efficient and versatile tool in workshops and community events. Erico Virgy theChairman CPV’ s Executive Coordinator commented that “The projectors are performing excellently andAppotronics is committed to harmonious coexistence with society and actively fulfills its social have already enhanced the quality of presentations and training sessions across multiple volunteerresponsibilities by engaging in diverse public welfare initiatives and promoting global collaboration centers. They will become long-term assets for our organization.”
Approaching Appotronics
for contributing to global common development.In May 2024 Ms. Irina Bokova former Director-General of UNESCO visited Appotronics for a field
Special Topic 1 study. She was accompanied by Dr. LI Yi Founder Chairman and CEO of Appotronics. They ex-
changed views on the application prospects of semiconductor laser light source technology in the
fields of education and culture. Ms. Bokova who served as Director-General of UNESCO from
2009 to 2017 is UNESCO’ s first female Director-General and currently President of the Global
Special Topic 2
Hope Coalition. She spoke highly of Appotronics’ technologies and products and expressed admi-
ration for the Company’ s contributions to cultural educational and artistic projects evaluating
them as impressive ones.Strategic Leadership
with Good Governance
Precision Management
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity
New Quality Empowerment
for World Connection
Care for Employees to
Build the Future Together
Science Popularization
Together with Public Welfare
Appendix
Ms. Irina Bokova former Director-General of UNESCO
and her team visited Appotronics for a field study. CPV used the projector donated by Appotronics in an event.APPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 157 / 158
About this Report 03.Biodiversity Actions
Biodiversity is crucial for ecosystem health human living environments and economic develop-
Message from the ment. Protecting biodiversity is the responsibility and mission of everyone.Chairman
To raise employees’ awareness of conservation the Company initiated the environmental hiking
campaign titled “Into the Wild: A Journey to Explore Biodiversity.” Employees were encouraged
Approaching Appotronics to participate in “Leave No Trace” hikes during which they photographed and documented spe-
cies they encountered exploring the beauty of nature and sharing their findings with colleagues
via the Company’ s internal platform. This event aimed to raise awareness about the importance
Special Topic 1 of protecting biodiversity and inspire broader involvement in environmental protection. During the
event participants recorded over 90 distinct species such as Kyllinga brevifolia rottb Ficus fistu-
losa and Blechnum orientale. These findings were compiled into an illustrated guide so that em-
ployees can learn about and appreciate local biodiversity in a more engaging and informative
Special Topic 2
way.Strategic Leadership
with Good Governance
Precision Management
for Sustainable Prosperity
Green Development for
Ecological Co-prosperity
New Quality Empowerment
for World Connection
Care for Employees to Biodiversity Illustrated Guide
Build the Future Together
Science Popularization
Together with Public Welfare
The Company’s Biodiversity Exploration Theme Hiking Event
AppendixAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 159 / 160
About this Report Appendix
Message from the
Chairman
GRI Standard Index Table
Approaching Appotronics
GRI Standards Disclosure items Chapter name
Special Topic 1 GRI102: General Disclosures
102-1 Organization name About this Report
Special Topic 2 102-2 Activities brands products and services Approaching Appotronics
Appotronics Headquarters Tower No. 8 Xiandong
102-3 Location of headquarters
Road Nanshan District Shenzhen Guangdong China
Strategic Leadership
with Good Governance Appotronics Headquarters Tower No. 8 Xiandong 102-4 Location of operations
Road Nanshan District Shenzhen Guangdong China
102-6 Markets served Approaching Appotronics
Precision Management
for Sustainable Prosperity
102-7 Scale of the organization Care for Employees to Build the Future Together
1.Organizational Profile
Green Development for 102-8 Information on employees and other workers Care for Employees to Build the Future Together
Ecological Co-prosperity
102-9 Supply chain New Quality Empowerment for World Connection
New Quality Empowerment
102-10 Significant changes to the organization and its supply chain New Quality Empowerment for World Connection
for World Connection
102-11 Precautionary principle or approach Precision Management for Sustainable Prosperity
Care for Employees to
Build the Future Together 102-12 External initiatives About this Report
102-13 Membership of associations New Quality Empowerment for World Connection
Science Popularization
Together with Public Welfare
102-14 Statement from senior decision-makers Message from the Chairman
2.Strategy
Appendix 102-15 Key impacts risks and opportunities Precision Management for Sustainable Prosperity
3.Ethics and integrity 102-16 Values principles standards and norms of behavior Precision Management for Sustainable ProsperityAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 161 / 162
About this Report GRI Standards Disclosure items Chapter name
102-18 Governance structure Strategic Leadership with Good Governance
Message from the
Chairman 102-20 Executive-level responsibility for economic environmental and social topics Strategic Leadership with Good Governance
102-21 Consulting stakeholders on economic environmental and social topics Strategic Leadership with Good Governance
Approaching Appotronics 4.Governance
102-22 Composition of the highest governance body and its committees Strategic Leadership with Good Governance
102-33 Communication of major concerns Strategic Leadership with Good Governance
Special Topic 1
Nature and total number of major concerns Strategic Leadership with Good Governance
Special Topic 2 102-40 List of stakeholder groups Strategic Leadership with Good Governance
102-42 Identifying and selecting stakeholders Strategic Leadership with Good Governance
Strategic Leadership 5.Stakeholder engagement
with Good Governance 102-43 Approach to stakeholder engagement Strategic Leadership with Good Governance
102-44 Key topics and concerns raised Strategic Leadership with Good Governance
Precision Management
for Sustainable Prosperity
102-45 Entities included in the consolidated financial statements About this Report
Green Development for 102-46 Defining report content and topic boundaries About this Report
Ecological Co-prosperity
102-47 List of material topics Strategic Leadership with Good Governance
New Quality Empowerment 102-48 Restatements of information About this Report
for World Connection
102-49 Report changes About this Report
Care for Employees to 6.Reporting practices
Build the Future Together 102-50 Reporting period About this Report
102-51 Date of most recent report About this Report
Science Popularization
Together with Public Welfare 102-52 Reporting cycle About this Report
Appendix 102-53 Contact point for questions regarding the report Readers’ Feedback
102-54 Statement on reporting in compliance with GRI Standards About this ReportAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 163 / 164
About this Report GRI Standards Disclosure items Chapter name
6.Reporting practices 102-55 GRI Content Index Appendix - GRI Standard Index Table
Message from the
Chairman 103-1 Explanation of the material topics and their boundary Strategic Leadership with Good Governance
GRI 103:Management
103-2 The management approach and its components
Approach Strategic Leadership with Good Governance
Approaching Appotronics
103-3 Evaluation of the management approach Strategic Leadership with Good Governance
201-1 Direct economic value generated and distributed Approaching Appotronics.
Special Topic 1 GRI 201:Economic
Performance
201-2 Financial implications and other risks and opportunities due to climate change Green Development for Ecological Co-prosperity
Special Topic 2 205-2 Communication and training about anti-corruption policies and procedures Precision Management for Sustainable Prosperity
GRI 205:Anti-Corruption
205-3 Confirmed corruption incidents and actions taken Precision Management for Sustainable Prosperity
Strategic Leadership
with Good Governance 302-1 Energy consumption within the organization Green Development for Ecological Co-prosperity
GRI 302:Energy
302-4 Reduction of energy consumption Green Development for Ecological Co-prosperity
Precision Management
for Sustainable Prosperity
303-2 Management of water discharge-related impacts Green Development for Ecological Co-prosperity
Green Development for 303-3 Water withdrawal Green Development for Ecological Co-prosperity
GRI 303:Water and
Ecological Co-prosperity Effluents
303-4 Water discharge Green Development for Ecological Co-prosperity
New Quality Empowerment 303-5 Water consumption Green Development for Ecological Co-prosperity
for World Connection
GRI 305:Emissions 305-5 Reduction of GHG emissions Green Development for Ecological Co-prosperity
Care for Employees to
GRI 306:Effluents and
Build the Future Together 306-2 Total amount of waste by type and disposal method Green Development for Ecological Co-prosperity Waste
GRI 307:Environmental
307-1 Violation of environmental laws and regulations None
Compliance
Science Popularization
Together with Public Welfare
GRI 308:Supplier 308-1 New suppliers screened under environmental standards New Quality Empowerment for World Connection
Environmental
Assessment
Appendix 308-2 Negative environmental impacts in the supply chain and actions taken New Quality Empowerment for World Connection
GRI 401:Employment 401-1 New employee hires and employee turnover Care for Employees to Build the Future TogetherAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 165 / 166
About this Report GRI标准 披露项 章节名称
401-2 Benefits provided to full-time employees that are not provided to temporary
GRI 401:Employment
or part-time employees Care for Employees to Build the Future Together
Message from the
Chairman 403-5 Worker training on occupational health and safety Care for Employees to Build the Future Together
403-6 Promotion of worker health Care for Employees to Build the Future Together
Approaching Appotronics GRI 403:Occupational
Health and 403-7 Prevention and mitigation of occupational health and safety impacts direct- Care for Employees to Build the Future Together
Safety ly related to business operations
403-9 Work-related injuries Care for Employees to Build the Future Together
Special Topic 1
403-10 Work-related health issues Care for Employees to Build the Future Together
Special Topic 2 404-1 Average hours of training per year per employee Care for Employees to Build the Future Together
GRI 404:Training and
404-2 Programs for upgrading employee skills and transition assistance programs Care for Employees to Build the Future Together
Education
Strategic Leadership
404-3 Percentage of employees receiving regular performance and career develop-
with Good Governance Care for Employees to Build the Future Togetherment reviews
GRI 405:Diversity and Precision Management for Sustainable Prosperity
405-1 Diversity of governance bodies and employees
Precision Management Equal Opportunity Care for Employees to Build the Future Together
for Sustainable Prosperity
GRI 406:Non-discrimination Management plan Care for Employees to Build the Future Together
Green Development for GRI 408:Child Labor Management plan Care for Employees to Build the Future Together
Ecological Co-prosperity
GRI 409:Forced or
Management plan Care for Employees to Build the Future Together
Compulsory Labor
New Quality Empowerment GRI 413:Local Communities Management plan Science Popularization Together with Public Welfare
for World Connection
414-1 New suppliers screened under social standards New Quality Empowerment for World Connection
GRI 414:Supplier Social
Care for Employees to Assessment
Build the Future Together 414-2 Negative social impacts in the supply chain and actions taken New Quality Empowerment for World Connection
GRI 416:Customer Health
416-1 Assessment of the health and safety impacts of product and service categories New Quality Empowerment for World Connection
and Safety
Science Popularization
Together with Public Welfare GRI 417:Marketing and 417-1 Requirements for product and service information and labeling New Quality Empowerment for World Connection
Labeling
418-1 Substantiated complaints concerning breaches of customer privacy and
Appendix GRI 418:Customer Privacy Nonelosses of customer data
GRI 419:Socioeconomic 419-1 Non-compliance with laws and regulations in the social and economic area None
ComplianceAPPOTRONICS CORPORATION LIMITED Environmental Social and Governance (ESG) Report 167 / 168
Readers’ Feedback
About this Report
Thank you for reading the 2024 Environmental Social and Governance (ESG) Report of Appotronics. In order to improve the activities of Appotronics in the environmental social and governance areas and further
enhance the Company’ s ability in sustainable development with better disclosure of valuable information to stakeholders and greater fulfillment of social responsibility we sincerely look forward to your valuable com-
Message from the
ments and suggestions towards our work and reports.Chairman
You may fill out the feedback form and send it to the following email: csr@appotronics.cn
Approaching Appotronics
Your information
Name: Tel:
Special Topic 1
Employer: Email:
Your overall evaluation of the Company’s ESG report is:
Special Topic 2
□ Extremely satisfied □ Very satisfied □ Satisfied □ Not very satisfied □ Dissatisfied
Strategic Leadership Your evaluation of the Company’s fulfillment of ESG responsibilities:
with Good Governance
Governance responsibility： □ Extremely satisfied □ Very satisfied □ Satisfied □ Not very satisfied □ Dissatisfied
Precision Management Social responsibility: □ Extremely satisfied □ Very satisfied □ Satisfied □ Not very satisfied □ Dissatisfied
for Sustainable Prosperity Environmental responsibility: □ Extremely satisfied □ Very satisfied □ Satisfied □ Not very satisfied □ Dissatisfied
Green Development for Do you think this report can reflect the impact of the Company’s social responsibility practices on the governance society and environment
Ecological Co-prosperity
□ It can reflect very well □ It can reflect well □ It can reflect to some extent □ It cannot reflect very well □ It cannot reflect
New Quality Empowerment What do you think of the clarity accuracy and completeness of the information data and indicators disclosed in the Report
for World Connection
Clarity: □ Extremely satisfied □ Very satisfied □ Satisfied □ Not very satisfied □ Dissatisfied
Care for Employees to Accuracy: □ Extremely satisfied □ Very satisfied □ Satisfied □ Not very satisfied □ Dissatisfied
Build the Future Together
Completeness: □ Extremely satisfied □ Very satisfied □ Satisfied □ Not very satisfied □ Dissatisfied
Science Popularization Do you think the content arrangement and layout design of the Report are convenient for reading
Together with Public Welfare
□ Yes □ Average □ No
Appendix
Your opinions and suggestions on the Company’s ESG efforts and the Report:
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