2023
Halo Microelectronics Co. Ltd.ENVIRONMENTAL SOCIAL
AND GOVERNANCE REPORT
Halo Microelectronics Co. Ltd.Mailing address: Unit 305-308 Building A8 Core Zone Qiandenghu
Venture Capital Town No. 6 North Guilan Road Guicheng Street
Nanhai District Foshan
Company e-mail: ir@halomicro.com
Investor relations hotline: 0757-81280550
Website Address：www.halomicro.cn
Stock Code 688173Contents
030507
About This Report 01 About Halo Microelectronics 07 Harmonious and Co-prosperity 23 Refining Governance and 61
to Build a Land of Hope Upholding Integrity
Company Profile 09
Message from Chairman 05 History 10 Technology Empowerment 25 Checks and Balances for Optimized 63
for Efficiency and Reduction in Governance
Strategy and Culture 11 Consumption Risk Avoidance and Compliance 65
Business Layout 13 Proactive Approach to Green 26 Governance
Numbers on Halo Microelectronics 14 Operations Vigorous and Resolute Actions in 68
Honors and Awards 15 Energy Saving and Emission 28 Rights and Interests Protection
Reduction for Efficient Resource Use
Moving Towards Green with Low- 29
carbon Office Practices
04 06 Outlook 71
Appendix 73
Strategies and Management 17 Mutual Promotion for Win-Win 31 Key Performance Indicators (KPIs) 73
Upholding the Spirit of Halo
ESG Responsibility Management 19 Index 76Microelectronics
Interactions with Stakeholders 19 Questionnaire 77
Assessment of Material Topics 20 R&D Support Quality Prioritized 33 Disclaimer 78
Dedication to Society for Common 52
Benefit
People-Oriented for Mutual Growth 56Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report About This Report
About This Report Abbreviation Full Name
Audi Refers to Audi AG
This report presents the efforts and achievements of Halo Microelectronics Co. Ltd. (hereinafter referred to as Hyundai Refers to Hyundai Motor Company
"Halo Microelectronics" "the Company" or "We") in implementing the ESG (Environmental Social and Gover-
nance) principles in 2023 with the purpose to enhance communication and connections with stakeholders and to Kia Refers to Kia Motors Corporation
address their concerns and expectations.XPENG Refers to XPeng Inc.Hongqi Refers to A high-end vehicle brand of CHINA FAW GROUP CO. LTD.Reporting Period
AITO Refers to A new energy vehicle brand of Seres Group Co. Ltd.The period covered by this report starts from January 1 2023 to December 31 2023. Some content extends be-
yond this scope. Changan Refers to Chongqing Changan Automobile Co. Ltd.Yura Tech Refers to YURA TECH. CO. LTD.Reporting Scope Automotive Electronics Council–Qualification 100 developed by
Automotive Electronics Council (AEC) is the verification standard
Unless otherwise indicated this report is concerned with Halo Microelectronics and its wholly-owned subsidiaries. AEC-Q100 Refers to of automotive specifications the general standard of automotive
electronic system as well as the quality control standard for the
reliability and standardization of automotive chips.Names and Abbreviations One of the three basic topologies of the switching power supply. Boost
Boost Refers to circuit steps up the input voltage and generates an output average
voltage that is greater than the input voltage.Abbreviation Full Name
Direct Current / Direct Current. It is a technology and method to
Halo Microelectronics/Company/We Refers to Halo Microelectronics Co. Ltd. DC/DC Refers to convert a source of direct current from one voltage level to another by
stepping up or stepping down the voltage.Halo Microelectronics (Beijing) Refers to Halo Microelectronics (Beijing) Co. Ltd.Fabrication-Less the fabless integrated circuit business model in
MTK Refers to MediaTek Inc. which manufacturers focus on the R&D design and sales of chips
Fabless Refers to
while outsourcing the wafer fabrication packaging and testing to
OPPO Refers to Guangdong Oppo Mobile Communication Co. Ltd. other specialized manufacturers.Qualcomm Refers to Qualcomm Inc. Parts per million used to measure the defective rate which means the
ppm Refers to
number of defective units in one million units.vivo Refers to vivo Mobile Communication Co. Ltd.A type of USB interface. It is a reversible interface with thinner design
Samsung Refers to Samsung Electronics Co. Ltd. Type-C Refers to higher transfer rate and more powerful transmission.Xiaomi Refers to Xiaomi Corporation One of the fast charging technologies usually refers to such
super-fast charging Refers to
technologies that provide charging power greater than 30 W.HONOR Refers to Honor Device Co. Ltd.A kind of non-inductive DC/DC converter that uses capacitors for
Transsion Refers to Shenzhen Transsion Holdings Co. Ltd. charge pump Refers to energy storage to raise or lower voltage and current.Google Refers to Google Inc. Provide protection against overpressure overcurrent
port protection Refers to overtemperature surge etc. for circuit connection ports including
Logitech Refers to Logitech International SA the USB port.
01 02Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report About This Report
Abbreviation Full Name References
Process the semiconductor integrated circuit on the wafer into This report is prepared in strict accordance with the relevant requirements of SSE STAR Market No.1 - Regulated
usable chips with carrier and pins through wires and various
packaging Refers to connection means for the purposes of placing fixing packaging Operation by Shanghai Stock Exchange(SSE) with references to the GRI Standards released by Global Report-
and protecting chips as well as enhancing its electrothermal ing Initiative (GRI) the SDG Compass of the United Nations the ISO 26000:2010 Guidance on Social Responsi-
performance. bility by the International Organization for Standardization (ISO) the Study on the Preparation of ESG Reports
A device fabricated by integrating a large number of components of of Listed Companies Controlled by Central Enterprises issued by the State-owned Assets Supervision and Ad-
integrated circuit or IC Refers to
a circuit into a single crystal wafer. ministration Commission of the State Council (SASAC) the Rules Governing the Listing of Stocks on SSE STAR
The silicon wafer used in the fabrication of integrated circuit. It Market the SSE Guidelines No.2 on the Application of Self-Regulation Rules for Listed Companies on SSE STAR
can be fabricated into various circuit element structures after Market - Voluntary Information Disclosure the Notice on Working Effectively Disclosure of 2023 Annual Reports
wafer Refers to
processing and turn into integrated circuit products with specific of Listed Companies on SSE STAR Market the SJ/T16000-2016 Guidance on Social Responsibility of Information
electric functions. and Communication Technology Industry issued by China Electronics Standardization Association (CESA) and
Li-ion battery fast charging Refers to A kind of fast charging technology based on lithium-ion batteries. other related guidelines.Auto Focus a technology that automatically focuses by moving
AF Refers to
multiple lenses
Optical Image Stabilization. To avoid or reduce the phenomenon of Data Source
instrument jitter in the process of capturing optical signals through
OIS Refers to
the setting of optical components in cameras or other similar Unless otherwise indicated all information and data referenced in this report is based on the Company's internal
imaging instruments thereby improving imaging quality documentation or relevant public documents. This report has been reviewed and approved by the Company's
It is used inside the camera module to control the voice coil motor Board of Directors. The Board of Directors of the Company warrants that this report contains no inaccurate re-
Voice coil motor driver chip Refers to
to achieve automatic focus function cords misleading statements or major omissions.One of the three basic topologies of the switching power supply.Buck Refers to Buck circuit steps down the input voltage and generates an output
average voltage that is smaller than the input voltage. Monetary Unit
A type of linear DC motor originally used in speakers to create
Voice coil motor Refers to vibration for sound production. Now it's utilized in devices to move Unless otherwise indicated all monetary amounts are listed in RMB for this report.lenses for auto focus.A type of power management chip. The load switch is a space-
saving integrated power switch. This type of chip includes functions Access to the Report
Load switch chip Refers to
like reverse current blocking overcurrent protection thermal
shutdown and automatic output discharge. The electronic version of this report is available for downloading at the website of SSE (www.sse.com.cn) and the
User identification module (SIM card)/smart card interface level website of the Company (www.halomicro.cn).shifting chip. It facilitates the logic voltage compatibility between This report is published in English. The English version is based on the translation of the Chinese version and is
SIM card interface level shifting chip Refers to
a mobile phone's main chip and a SIM card while also providing for reference only. In case of any inconsistency between two versions the Chinese version shall prevail.discharge protection.For any further inquiries or suggestions on this report and the Company's ESG work please contact us via:
Programmable electronic fuses. It can calibrate circuit parameters
control current and voltage and ensure the circuit operates Address: Unit 305-308 Building A8 Core Zone Qiandenghu Venture Capital Town No. 6 North Guilan Road Guic-
E-Fuses load switch chip Refers to
normally thereby preventing accidental output short circuits and heng Street Nanhai District Foshan
unexpected overloads. Phone: 0757-81280550
Over Current Protection. When OCP is triggered and the DC power E-mail: ir@halomicro.com
OCP Refers to supply enters a current-limiting state OCP takes control after a
specified delay shutting off the DC power supply's output.NVTS Refers to Navitas Semiconductor Corporation
Navitas Refers to Navitas Semiconductor Limited a subsidiary of NVTS
03 04Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Message from Chairman
Message from Chairman
In 2023 the global semiconductor industry experienced Optimizing Management Services in Collaboration with Technological Innovation
a severe downturn posing significant challenges for
Halo Microelectronics. However we adhered to our Halo Microelectronics fosters development through innovation creating competitive technological barriers fo-
long-term vision maintained steady operations sought cusing on the synergistic effects of technology and management continuously optimizing innovation manage-
motivation created opportunities and reshaped the ment and our rich innovative achievements. We place high importance on intellectual property protection estab-
organization through strategic and cultural initiatives. lish a comprehensive quality management system and are committed to providing customers with high-quality
We achieved efficient management drove innovation products and services. We value customer experience optimize complaint handling processes establish a com-
in talent and technology deeply engaged in the analog prehensive information security management system and in 2023 did not experience any cybersecurity inci-
chip field and diversified our business layout. The Com- dents. With comprehensive strength and steady steps we confidently advance towards challenges.pany implements the ESG principles focusing on ESG Facilitating Mutual Benefits by Practicing Social Responsibilities
governance as a key initiative. Halo Microelectronics is
committed to integrating green development and oper- Halo Microelectronics is committed to achieving mutual benefits for society deepening collaboration with do-
ation principles from a strategic perspective writing a mestic and international teams and partnerships among enterprises universities and research institutes. We
new chapter of vibrant and buoyant corporate growth. accelerate the application of new technologies actively participate in public welfare activities support rural re-
vitalization and youth education ensure fair employment protect the legal rights of employees promote career
Integrating Green Concepts into the Ecosystem of the development and health safety focus on humanitarian care and enhance the happiness and sense of belonging
Enterprise among employees. Together with all stakeholders we forge a people-oriented foundation with responsibility.Halo Microelectronics upholding its green mission is Constructing a Solid Foundation for Steady Development Through Excellent Governance
Halo Microelectronics Co. Ltd. dedicated to developing efficient and low-consumption
analog chip products. Through innovative design we Halo Microelectronics focuses on improving governance. In the year of 2023 the Company's Chinese name was
TAO HAI Chairman enhance performance and reduce power consumption officially renamed " 希荻微电子集团股份有限公司 ". It established a wholly-owned subsidiary in Beijing launched
offering users high-performance high-reliability green the IVS division integrated the original business division layout optimized management processes and en-
electronic products. We actively advocate for green hanced market response efficiency officially entering a new phase of "group management control large-scale
office practices and operations employ a series of mea- operations and specialized management."
sures to raise environmental awareness among employ- Despite the long trek ahead there's no need to worry about the trials and tribulations along the way. Everyone at
ees foster a green environment enhance supply chain Halo Microelectronics will continue to uphold the mission of "Making life better with green energies" taking firm
risk management awareness and strive for the harmoni- steps towards the envisioned blueprint working as a team actively progressing and tirelessly pursuing to forge
ous coexistence and a shared green future. ahead and achieve long-term stability.
05 06Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report About Halo Microelectronics
About Halo Microelectronics
Company Profile Business Layout 03
History Numbers on Halo
Strategy and Culture Microelectronics
Honors and Awards
07 08Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report About Halo Microelectronics
History
Company Profile
2012 The Company was established.
2014 The very first switching charger chip HL7005 developed by the Company was officially launched on the market.
Founded in 2012 Halo Microelectronics Co. Ltd. was
listed in the SSE STAR Market in January 2022 with The industry-leading switch-based buck converter chip was launched;
the stock code of 688173.SH. It is one of the leading 2015 The automotive switching buck converter chip was included in the reference design of Qualcomm's intelligent
domestic suppliers for chips in power management cockpit vehicle platform in the United States.and signal chain. The Company mainly specializes in
the R&D design and sales of analog integrated circuit 2017 Wireless charger chip was included in Qualcomm's reference design.products including chips in power management and
signal chain. It has established a cutting-edge R&D
and management team with top minds from interna- The Company successfully passed the ISO 9001 Quality System certification;2018
tional backgrounds and has successfully developed The automotive charger chip was included in the supply chain of Kia and Hyundai Motor in South Korea.an array of high-performing chip products with high
efficiency high precision and high reliability. The The very first domestic audio and data signal switching chip was launched and mass-produced by domestic premium brand mobile phone manufacturers;
DC/DC chips super-fast charging chips and other
2019 The super-fast charging chip - a high-voltage charge pump product was innovatively launched and was exclusively products of the Company boast highly comparable supplied for use in the flagship handset of a well-known brand marking the release of high-voltage charge pump
charger for the first time globally;
performance with that of similar products produced
Our products were successfully included for use in the supply chain of Transsion.by domestic and international leading manufactur-
ers. The Company continues to expand and deepen
its cooperation with both domestic and international 2020 Our products were successfully included in the supply chain of clients such as MTK Xiaomi OPPO and Honor.brand clients also adds a new product line for voice
coil motor driver chips continuously enriching its
portfolio of products. 2021 Our products were successfully included for use in the supply chains of Samsung vivo and Audi in Germany.The Company was registered with the SSE STAR Market;
The Company was accepted as a member of the JC-40 Committee under JEDEC and it will participate in the joint
2022 development and formulation of technical specifications for next-generation integrated circuit pertinent to chips for power management and power devices;
The automotive-grade chip for power management has been successfully used in automobile brands such as
XPeng Hongqi AITO and Changan Auto.Collaborating with Navitas focusing on key development areas and exploiting the market of the third generation of
semiconductors
Granted patent for the collaborative research results with Princeton University
2023 The Company's Chinese name was officially renamed " 希荻微电子集团股份有限公司 "
The "Configurable Multi-Channel High/Low Side Driver Chip" project participated in the 2023 automotive-grade
chip technology initiative "Unveiling Commanders" for major tasks organized by Beijing Municipal Science &
Technology Commission Administrative Commission of Zhongguancun Science Park. The project was successfully
approved and the Company established a new wholly-owned subsidiary "Halo Microelectronics (Beijing) Co. Ltd."
to undertake the project
09 10Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report About Halo Microelectronics
Strategy and Culture Corporate Culture
Strategies of the Company
Since its establishment in 2012 Halo Microelectronics has always adhered to the mission of "Making life better with
green energies" forming a development strategy focused on customers products talent innovation and brand. The
Company is committed to becoming an international leader in the niche market of analog chips offering industry-lead-
ing analog and power management chips and solutions to enable high-efficiency smart system applications globally. Humanity
People-oriented valuing the individ-
In the future Halo Microelectronics will further deepen its chip product layout in segmented areas such as power uality and diversity of employees
creating a conducive environment
management port protection and signal switching and orderly expand into fields like power conversion products. for learning and growth fostering
a harmonious equitable and sup-
In the meantime the Company puts efforts into expanding the product line of voice coil motor driver chips related to portive work atmosphere enhanc-
AF/OIS technology and combining with existing power management and signal chain chip products to consolidate its ing organizational cohesion and loy- Innovationalty and driving collective success
position in the field of consumer electronics. In addition the Company will develop a more targeted plan for the auto- with the Company's growth! Driven by innovative develop-ment committed to the path of
motive electronics field based on its current consumer electronics and automotive electronics application fields while high-performance analog chip research and development
continuing to maintain the products' compliance with the AEC-Q100 specification extend its business to communica- delving deep daring to inno-vate and being a pioneer!
tions and storage fields and constantly create new sources for increasing revenues.Strategic Vision Board
Making Life Better with Green Energies! Mission Quality First
Customer-centric insisting
on comprehensive reliability
To become an international-leading testing for every new product
enterprise in the market segment of analog chip Vision Corporate establishing high industry stan-
To provide industry-leading analog and power management chips dards for quality control and
and solutions to enable energy efficient intelligent system applications worldwide. Culture reliability systems and provid-ing customers with high-per-
To be an expert of signal chain and power management chips while widening the application of our products in the formance high-quality analog
sectors of industrial power and automotive electronics. Position chip products.Integrity and honesty passionate innovation knowing both ourselves and our components win-win cooperation Core Value
Development Talent Cultivation
Philosophy Philosophy Business Philosophy
Management
Philosophy Service Philosophy
Focus on main Achieve multi- Organizational
business and Respect the win outcome
ensure continuous differences between for customers
Provide customers Philosophy Win-Win
individuals learn and employees Quality first with more valuable investment in future Oriented towards open coop-
core competitiveness grow together shareholders and
services
eration creating social value
society Sustainable of enterprises achieving mu-
Development tual benefits for the Company
Customer Strategy Product Strategy Talent Strategy Innovation Strategy Brand Strategy employees shareholders and
Reasonably allocating talents tech- society.To become an expert nology capital and information
of power and signal resources leading the coordinated
Maintain Customer Core Strategy development of products systems Market Introduction Multi-point Layout Increase Product chain products culture and innovation maintaining Stickiness
Reference Design Systematic Control Talent Echelon
Depth with stability and the Company's core competitive-
Frontier Layout reliability guaranteed ness in domestic and international
quality and leading markets and building a sustainable
technology brand image.Institutionalization of Digital workplace
internal management Efficient control of R&D Quality control output system management technologies such as OA/
Basis
process ERP
Keeping the core advantages constantly surpassing ourselves
11 12Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report About Halo Microelectronics
Business Layout Numbers on Halo Microelectronics
As one of the leading domestic enterprises in the design of integrated circuits Halo Microelectronics specializes in the Financial Data Highlights
R&D design and sales of analog integrated circuits including chips in power management and signal chain. The main
products are analog integrated circuits including chips for power management and signal chains in the consumer elec-
tronics and automotive electronics fields. The current product series includes DC/DC chip lithium battery fast charger ESG data highlights
chip port protection and signal switching chip power switching chip etc. all delivering outstanding performances like
high efficiency superior precision and incredible reliability. Additionally in 2023 the Company added a new product
line—voice coil motor driver chips related to AF/OIS technology. The Company's main product layout is as follows:
With the recovery of the consumer electronics industry the Company's performance
DC/DC chip Lithium battery charging
Port protection Power switching Voice coil motor has risen steadily quarter by quarter. In the third quarter the operating income was RMB
management chip and signal switching chip chip driver chip 136.4703 million a quarter-on-quarter increase of 61.41%; In the fourth quarter the
Super-fast charging chip Fast charging chip Consumer operating income was RMB 132.4385 million which was basically the same as that in the
Electronics e.g.Consumer Smart phones third quarter.Electronics e.g.Smart phones Audio and data signal Consumer
Buck converter chip switching chip Electronics e.g.Boost converter chip Load switch chip Smart phonesUSB TYPE-C interface
Automotive Consumer Consumer protection chip White goods Voice coil motor open-
Electronics Electronics e.g. Electronics e.g. SIM card interface Motor driver chip loop/closed-loop
In the second half of 2023 the Company sold the stock assets obtained from the NVTS equi-
Buck converter chip Smart phones Smart phones level shifting chip module driver chip of camera ty transfer and technology licensing transaction. The above transaction led to an increase
Boost converter chip High pressure charge High-precision micro-
OIS voice coil motor/
Automotive SMA memory metal
High pressure LDO pump current charging motor driver chip of in the Company's retained earnings by 30.8691 million dollars optimized the Company's Low pressure charge High current switch Electronics
Communication and pump charging HSS camera asset structure improved asset liquidity and realized the preservation and appreciation of
Storage
Buck converter chip Communication and Storage assets. At the end of the reporting period the Company's total assets were RMB 2.0163737
E-Fuses
billion an increase of 3.59% over the end of the previous year; The net assets attributable
to shareholders of listed companies were RMB 1.8349386 billion an increase of 2.29%
Consumer Electronics over the end of the previous year.In the consumer electronics field such as mobile phones the products developed by Halo Microelectronics have been well rec- During 2023 the total shipment amount of all product lines of the Company was RMB
ognized by major chip platform manufacturers like Qualcomm and MTK and they have been extensively used in the consumer
electronic products by brands such as Samsung Xiaomi Honor OPPO vivo Transsion Google and Logitech covering a variety of 621.106 million an increase of 11.02% over the same period of the previous year of
mobile intelligent terminal devices including medium-and high-end flagship models. which the shipment amount of the Company's new product line of voice coil motor driver
chips during the reporting period was RMB 252.4827 million which is one of the main
growth points of the Company's shipment amount.Automotive Electronics
Halo Microelectronics continues to drive deep in the automotive electronics sector. In 2015 the plan for automotive-grade chips by The Company attaches great importance to the accumulation and innovation of its own
the Company was firstly started with Qualcomm's 820 automotive-grade recreational platform then the automotive-grade DC/DC R&D and technology and continues to invest in large-scale R&D thereby driving the per-
chips were officially supplied to the Kia series of Hyundai in Korea through YuraTech since 2018 followed by official supply to Audio formance improvement and new function integration of various products facilitating the
in Germany in 2021. As of now the automotive-grade products developed by the Company have been used in Audi Hyundai Kia evolution and iteration of products and improving the Company's core technology com-
Xpeng Hongqi AITO Changan Auto and other automobile brands in various countries like China Germany Japan and Korea. The
Company has initiated multiple new research topics for automotive chips with over 20 products in the R&D pipeline developed ac- petitiveness. During 2023 the Company's R&D expenses were RMB 237.4343 million
cording to the AEC-Q100 Grade 1 standard either in the research and development or definition phase and more than 15 products an increase of 17.26% over the previous year accounting for 60.32% of the Company's
ready for sampling providing technical and product reserves for the Company's expansion into the automotive electronics market. operating income; There were 27 new invention patent grants and as of the end of the re-
Additionally in June 2023 the Company participated in the 2023 automotive-grade chip technology initiative "Unveiling Command-
ers" for major tasks organized by Beijing Municipal Science & Technology Commission Administrative Commission of Zhongguancun porting period the Company has obtained a total of 69 invention patent grants including
Science Park with the "Configurable Multi-Channel High/Low Side Driver Chip" project which was successfully approved. In October 28 overseas patents.
2023 the Company launched an automotive-grade low IQ synchronous boost control chip leading the new trend in power manage-
ment. In November 2023 the Company was honored with the "Chip Development in Yizhuang · 2023 Top 50 Automobile Chips".
13 14Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report About Halo Microelectronics
Honors and Awards
High-tech Enterprise Certificate Small and Medium-sized Enterprises Top 50 Player in Growth Group of Guangdong- The First CRHC Cup · ESG Golden Bull Award Outstanding Technical Breakthrough Award Annual Supporter Award
with Specialization Delicacy Feature and Hong Kong-Macao Greater Bay Area - High-value for Top 50 Science and Technology Leading in the Domestic Analog IC Industry
Innovation Patent Portfolio Layout Competition 2023 Enterprises
A Characteristic Enterprise with Specialization Foshan Excellent Innovation and Science and Technology Leading Enterprise Gold Award for Best Strategic Partner 2023 Best Delivery Award 2023 Chip Development in Yizhuang · 2023 Top 50
Delicacy Feature and Innovation in Foshan Entrepreneurship Team Enterprise in Foshan in 2023 (Science Innovation and Automobile Chips
Entrepreneurship Team)
"Excellence Innovation Award" on the 30th Outstanding Talent Team Project in Nanhai Excellent Enterprises in Digital Application
Anniversary Celebration of Guicheng Chamber District Foshan Innovation in Nanhai District Foshan
of Commerce in Nanhai District Foshan
Science and Technology Leading Enterprise in Annual Support Unit of the 20th "Zhan Tianyou
Nanhai District Foshan Cup" Youth Science and Technology Innovation
Contest in Nanhai District Foshan City
15 16Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report ESG Strategies and Management
ESG Strategies and
Management 04
ESG Responsibility Management
Interactions with Stakeholders
Assessment of Material Topics
17 18Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report ESG Strategies and Management
ESG Strategies and Management Identification of topics Questionnaire Analysis of materiality
Confirmation by the
Management
ESG Responsibility Management Identify major trends perti- Conduct questionnaire-based Perform rational analysis of The management of the Com-nent to the Company through investigations on stakehold- the results obtained from pany performs careful perusal
policy analysis industry ers such as primary employ- the questionnaires and give and review of the results from
ESG Strategy research peer comparison ees government institutions a final ranking for the ma- the analysis of material topics stakeholder communication investors clients and suppli- terial topics of stakeholders to finally establish key infor-
then identify the material ers so as to properly generate by fully considering the mation to be disclosed in this
Halo Microelectronics is committed to enhancing the level of sustainable development over the long term ac- topics based on the national comments on the materiality relevant national policies report objectives of future
polices and key points of high assessment of ESG topics key points of high concern in ESG management and specif-
tively fulfilling corporate social responsibility integrating ESG concepts into the Company's strategic planning concern in the capital market. from both internal and exter- the capital market and peer ic implementation plans.nal stakeholders. performance.and operational management paying attention to environmental social governance and other aspects of ESG
issues continuously improving ESG governance level and promoting sustainable development of the enterprise.ESG Governance Structure Assessment of Material Topics
The Board of Directors of Halo Microelectronics has a Strategy and Development Committee responsible for the
comprehensive leadership of ESG work in charge of researching formulating the Company's ESG strategic plan- Halo Microelectronics maintains active communication with internal and external stakeholders through surveys
ning strategic goals governance structure and management systems establishing ESG-related risk and oppor- and other methods. Referencing the compilation standards adopted by this report and the features of the Com-
tunity identification processes regularly analyzing related risks and reviewing the Company's ESG reports and pany's business a two-dimensional matrix is developed. Based on the impact of the Company's business on the
other ESG-related disclosures to ensure all processes meet corporate needs relevant laws and regulations regu- economy society and the environment ESG key topics are identified from two aspects: stakeholder assessment
latory requirements and international standards. and the impact of company decisions. The Company proactively understands the issues of concern to stakehold-
ers actively takes related actions and timely communicates the effectiveness of such actions.Halo Microelectronics Co. Ltd.Board of Directors Matrix of Material Topics
Strategy and Development Committee Item Number
1 Environment
ESG Working Group Management Policies
2 Emissions of 15 Technological
Pollutants Innovation
19 16Executive Departments 3 Hazardous Waste 16 Intellectual 14
24 Disposal property protection
15
13 4 Use and Recycling 17 Supply Chain
25 of Resources
Management
Human 18 Social Welfare
Board of Resources and R&D Supply Chain Quality Sales Internal
7 17 5 Ecological
Environment 19. Product Quality
Directors Office Administration Department Management … Inspection Department Audit 1 Protection Management
Department Department Department Department 10 23
12 9 26 6 Combating Climate 20 Company 27 Change Governance
11
5 7 Green Products and 21. Protection of 3 20 Services Shareholders' Rights
Interactions with Stakeholders 22 21 8 Clean Technology 22. Investor Relation 2 4 28 Innovation Management6 9 Protection of 23 Risk Control
8
Halo Microelectronics places great emphasis on stakeholder communication continuously improving the stake- Employees' Rights Managementand Interests 24. Compliance
holder communication mechanism. The Company actively maintains communication with shareholders and 10 Occupational Management
18 Health and Safety
investors government and regulatory bodies customers employees suppliers and partners communities and 25 Information 11 Employee Training Disclosure
the environment establishing a communication mechanism that combines real-time and scheduled communi- and Development 26 Business Ethics
12 Employee Care 27 Economic
cation specialized communication and unscheduled exchanges. At the same time it actively utilizes new media Importance to Stakeholders Environmental Social Governance 13 Safe and Stable Performance
Operation
platforms encouraging all parties to actively participate in interaction promptly listen to and address concerns 28 ESG Management14 Customers' Rights
of stakeholders ensuring smooth and regular communication with all stakeholders. and Interests
1920
Importance to Halo MicroelectronicHalo Microelectronics 2023 Environmental Social and Governance (ESG) Report ESG Strategies and Management
Materiality Category Topic Stakeholders Expectations and requirements Communication channels
Social Intellectual property protection Diverse employment
Social Customers' rights and interest Remuneration system
Equal Employment
Social Technological innovation Improving health and safety
Salaries and benefits system
Social Safe and stable operation
Topics of high materiality Occupational health and safety Multiple development paths
Social Supply chain management Fair opportunities for promotion Opportunities for exchange on
Social Product quality control and management Employees and career development career planning education and
Vocational training learning
Governance Information disclosure
Humanistic care Employee satisfaction survey
Governance Compliance management Concern of female employees
Governance Business ethics Activity benefits
Governance Risk control management Honoring our commitments Suppliers management
Topics of medium Governance Economic performance Fair just and transparent materiality Transparent procurementprocurement
Environmental Environment management policy Honoring our contracts
Win-win development
Environmental Green products and services Suppliers Peers and Whole process quality controlAgreement honoring and
Partners Participating in seminars
Social Occupational health and safety delivery
Topics of general Industry progress Standard Setting
materiality Social Protection of employees' rights
Social Employee care Visits and talks
Product R&D and technological Customer satisfaction survey
innovation Formulating targeted system
Product quality management documents for customer complaints
Communication with Stakeholders Information security and
Customers protection of trade secrets Signing confidentiality agreements
Responsible marketing
Stakeholders Expectations and requirements Communication channels Holding exhibitions
Dealer management
Protection of shareholders' rights
and interests Regular disclosure of business Providing relief to disaster
and financial information Improving community victims
Receiving return on investment environment
Regular and routine Public welfare activities
Disclosure of material communication with investors Supporting public welfare
information activities Green office energy conservation
Shareholders and Shareholders' General Meeting & emissions reduction
Investors Continuous value creation General public Green and Environmentally Performance presentation Promoting cooperation between
Preventing business risks Friendly industry academia and research
School-enterprise cooperation
Compliance with laws and Campus recruitmentDaily management
regulations
Meetings and communication Interview and exchange
Environmental compliance
Supervision and inspection Press release
Paying taxes in accordance with Information dissemination
Government and the law Transparent recruitment Value sharing Official account/website
Regulatory Agencies informationPromoting employment Questionnaire and data transfer Media Participation in events
21 22Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Harmonious and Co-prosperity to Build a Land of Hope
Harmonious and Co-prosperity
to Build a Land of Hope 05
Technology Empowerment for Efficiency and
Reduction in Consumption
Proactive Approach to Green Operations
Energy Saving and Emission Reduction for
Efficient Resource Use
Moving Towards Green with Low-carbon Office
Practices
23 24Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Harmonious and Co-prosperity to Build a Land of Hope
Harmonious and Co-prosperity
to Build a Land of Hope HL7139A High-Efficiency High-Current Charge Pump Charging Chip
In 2023 the Company introduced the HL7139A a high-efficiency high-current charge pump charging chip suitable
for compact electronic devices such as smartphones tablets and mobile IoT devices. In a 33 W application scenar-
Technology Empowerment for Efficiency and io this chip (compared to similar products from competitors) can achieve up to 1.3% higher efficiency and 45%
better thermal performance. In a 66 W parallel charging application scenario this chip (compared to similar prod-
Reduction in Consumption ucts from competitors) allows for about 30% smaller overall PCB size while significantly enabling faster and lower power consumption battery charging functions.Halo Microelectronics always adheres to the mission of "Making life better with green energies" and is committed
to creating analog chip products with higher efficiency and lower power consumption. Through innovative design
and development the Company continuously improves product performance and strictly controls power con-
sumption indicators thereby providing customers with high-performance high-reliability green electronic prod-
ucts realizing the effective use of energy and contributing to clean energy.Improving Efficiency and reducing consumption
Halo Microelectronics introduces products that are high in efficiency and low in power consumption. As the demand
for wearable mobile devices becomes increasingly diversified thin and portable with long battery life are pain points
that mobile devices need to address. The Company meets the demands of users and industry development introduc-
ing several products that combine high efficiency and low power consumption through technological innovation aim-
ing to enhance efficiency and reduce energy consumption and responding to the global theme of energy-saving and
low carbon. Proactive Approach to Green Operations
Environmental Management System
HL7543 Ultra-Low Quiescent Current DC/DC Buck Conversion Chip By strictly implementing and following requirements of Environmental Protection Law of the People's Republic
of China the Law of the People's Republic of China on Environmental Impact Assessment and other relevant
In 2023 the Company introduced the ultra-low quiescent current DC/DC buck conversion chip HL7543 suitable laws and regulations Halo Microelectronics keeps improving the environment protection system construction
for wearable devices smartwatches and other applications. With ultra-low power consumption and a compact and practices green development strategy trying to become a resource-conservative and environment-friendly
package this chip brings more efficient and stable power management solutions to wearable device applications enterprise. In line with the actual circumstances of business operation the Company has established relevant
thereby reducing power consumption in standby mode extending battery life and effectively solving power man- environmental protection management systems fully fulfilling the primary responsibility for energy saving and
agement issues in wearable devices.environmental protection of listed companies.During the reporting period the Company has not had any major environmental incidents.Combating Climate Change
Climate change is one of the greatest risks faced globally. In the process of practicing low-carbon and environ-
mentally friendly operations Halo Microelectronics actively addresses climate change referencing the framework
of Task Force on Climate-related Financial Disclosures (TCFD) for disclosing climate-related financial information
carrying out the identification of climate risks and opportunities and based on this assessing the related impacts
and developing various adaptation and response measures.
25 26Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Harmonious and Co-prosperity to Build a Land of Hope
Climate-related Risk Response Energy Saving and Emission Reduction for
Identify possible damage to assets and
Office buildings laboratories and procure necessary insurance. Efficient Resource Use
equipment might be damaged to
cause asset loss even employee Close attention is paid to weather changes. Contingency Risks: safety accidents and may Warnings and forecasting information Extreme weather damage the continuity of business are forwarded timely and emergency Use of Resources and Emissions
operations and economic interests measures such as ice and snow removal Physical Risks
directly or indirectly. and drainage are promptly taken to eliminate hidden dangers and reduce Halo Microelectronics strictly observes the Environmental Protection Law of the People's Republic of China the Wa-
losses related to acute weather events. ter Pollution Prevention and Control Law of the People's Republic of China the Atmospheric Pollution Prevention
and Control Law of the People's Republic of China the Law of the People's Republic of China on Prevention and
Chronic Risks: Sustained Higher temperatures leading to increased need for cooling which Applying cooling technology and Control of Pollution from Environmental Noise the Law of the People's Republic of China on the Prevention and high temperature further increases operational costs; equipment that are more energy efficient. Control of Environment Pollution Caused by Solid Wastes and other laws and regulations in order to standardize
the use and emission of daily office resources.New policies and regulations on Stay on top of the changes in the regulations and policies related to dual
Policies and Laws Risks greenhouse gas (GHG) emissions carbon and formulate corresponding Halo Microelectronics' main business is the R&D and design of analog integrated circuits primarily utilizing external-may increase the Company's
compliance costs. measures in a timely manner to actively ly purchased electricity and water generating only a small amount of domestic wastewater and office waste such address the changes. as discarded electronic devices without producing industrial wastewater exhaust gases waste slag noise or other
Implementing a green procurement pollutants. In its business operations the Company adheres to a sustainable growth strategy advocating for a green
philosophy and giving priority to and low-carbon philosophy with no environmental protection violations during the reporting period.Shifts in upstream and outsourcing manufacturers that are
downstream supplier and ISO14001 certified in the process of
customer preferences may selection;
Market risks intensify the focus on green and Hazardous Substance Managementlow-carbon products. Introducing more energy-saving and
consumption-reducing products with
Rising energy and outsourcing Halo Microelectronics places importance on clean and safe management during production. Based on the Fabless Transition Risks green low-carbon design principles to costs. meet consumer demands; operational model it effectively supervises clean production at the entrusted outsourcing factories responsible for
Promoting energy conservation. wafer manufacturing and packaging testing. To ensure clean and safe manufacturing the Company has developed
a Hazardous Substances Management Manual based on the IECQ QC080000 standard and the actual circumstances
Adhering to sustainable development to manage outsourcing factories specifying the management objectives responsibilities operational processes
actively undertaking social responsibilities
and urging manufacturers to focus on and inspection mechanisms for hazardous substances.Poor performance in combating reducing emissions of wastewater exhaust
Reputation risks climate change and sustainability
gas etc. during production to reduce
giving rise to negative feedback supply chain environmental risks;
from associated stakeholders. Regularly publishing ESG reports and
disclose information on the status of the
Company's energy saving and emission
reduction efforts.Risk Emergency Plan
To effectively prevent environmental risk accidents and respond efficiently and promptly to sudden environmental
risks fully control and eliminate pollution Halo Microelectronics has developed an Environmental Risk Emergency
Plan clarifying the organizational structure and related responsibilities for emergency environmental risk man-
agement predicting various types of environmental risks that may occur at office sites organizing and developing
emergency measures thereby providing important guarantees for environmental safety and employee safety.
27 28Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Harmonious and Co-prosperity to Build a Land of Hope
Moving Towards Green with Low-carbon
Office Practices 1、Posting "Save Water" slogans in pantries and restrooms.2、Using water-saving devices to prevent leaks and drips.
3、Restrooms are equipped with automatic faucets for smart
Green Office Actions water-saving.The Company promotes green office practices advocating for the reuse of paper to save resources; and posting
"Please turn off the lights" "Please timely turn off lights computers and air conditioners after work" and other re-
minders in office areas and meeting rooms. The Company regularly conducts waste battery recycling to enhance
employees' awareness of energy saving and environmental protection through multiple measures fostering a green
and low-carbon lifestyle.
123
Sustainable supply chain
Halo Microelectronics actively practices the green and low-carbon philosophy in supplier selection and product
Green office and operation procurement fully considering environmental protection resource conservation safety and health circular low-car-
bon and recycling promotion giving priority to purchasing and using energy-saving water-saving and materi-
al-saving raw materials products and services that are beneficial to environmental protection. The Company has
developed the Supplier Management Control Procedures and Fixed Assets Maintenance and Disposal Procedures
explicitly incorporating environmental considerations into them.Welfare Activities about Environmental Protection
Recycling Waste Batteries Halo Microelectronics actively engages in environmental protection themed charity activities conducting various
environmental propaganda activities to raise public awareness of environmental protection and deepen the con-
Halo Microelectronics values the sensible use of water and has implemented a series of measures such as water-sav- cept of environmental protection in people's hearts.ing initiatives optimizing production processes and replacing water-saving devices to effectively improve water
efficiency. Meanwhile the Company promotes the concept of water conservation among employees by posting Wa-
ter-saving Slogans and raising awareness about water conservation.The Denglongsha Island Construction Project
Currently the green beautiful Jiangxin Island has been included as a key work and highlight project of building a
green beautiful Foshan. As an important natural resource of Foshan Jiangxin Island has extremely high ecological
value and plays an irreplaceable role in constructing the regional ecological pattern and maintaining biodiversity.Halo Microelectronics headquartered in Foshan has donated to the project fulfilling the social responsibility as a
listed company.
29 30Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Mutual Promotion for Win-Win Upholding the Spirit of Halo Microelectronics
Mutual Promotion for Win-
Win Upholding the Spirit of
Halo Microelectronics 06
R&D Support Quality Prioritized
Dedication to Society for Common Benefit
People-Oriented for Mutual Growth
31 32Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Mutual Promotion for Win-Win Upholding the Spirit of Halo Microelectronics
Mutual Promotion for Win-Win In June 2023 the Company participated in the 2023 annual automotive-grade chip technology initiative "Unveiling Commanders" for major tasks organized
Upholding the Spirit of Halo by Beijing Municipal Science & Technology Commission Administrative Commis-Honors of scientific sion of Zhongguancun Science Park with the "Configurable Multi-Channel High/
research team
Microelectronics Low Side Driver Chip" project which was successfully approved.Optimizing Innovation Management
R&D Support Quality Prioritized Halo Microelectronics adheres to a Fabless business strategy focusing on the R&D and design of chips outsourcing wafer
manufacturing packaging and testing to outsourcing factories. To ensure the quality of R&D the Company has established
R&D and Quality Management Systems Design and Development Control Procedures Internal Audit Control Procedures
Innovation-Driven Development and R&D Expense Accounting Management Methods among other R&D-related management systems and processes. At the
same time the Company continually learns from advanced experiences benchmarks against the top-level design concepts
Halo Microelectronics consistently views innovation as the key driving force for sustainable growth highly values the of mainstream innovation management systems and based on its own characteristics has gradually built a unique R&D
accumulation of basic technologies continuously enhances product competitiveness and builds superior techno- and innovation management system achieving a process-oriented systematic and closed-loop innovation workflow.logical barriers becoming one of the few domestic suppliers that can compete directly with international players in
the global high-end analog chip market. The Company focuses on enhancing the synergy between technology and R&D and innovation management system
management with a multi-product strategy supporting rapid and high-quality growth and development.First assess current R&D innovation capabilities. Study the opportunities and challenges facing the Company and
Assessment find out where the Company stands in terms of technology trends competitor moves and user preferences. Ascertain
the Company's position and clarify our R&D innovation intentions based on these factors.RMB 237 60.32 % 64.34 %
million
Proportion of Proportion of Once a strategic product development plan has been established the Company allocates resources to support the
R&D investment R&D investment R&D personnel development plan and ensures that the plan is aligned with the strategy in the course.For that matter Halo Microelectronics has set up a R&D product management framework. The framework links
together related resources such as marketing R&D and engineering with the Product Quality Management Department
at the junction to accomplish the following tasks together:
Coordinate the allocation of R&D resources manage the project schedule and promote the steady progress of
The Halo Microelectronics R&D team has a profound industrial background focusing on the R&D and design of product development; Execution
chips concentrating on the cutting-edge technology of high-performance analog integrated circuits precisely cap- Coordinate with supply chain to complete the production of products in the engineering phase and prompt the engineering department for testing;
turing market demands coordinating resource management to meet the ever-changing market needs. Push the R&D and engineering departments to work together for product debugging and to decide whether to revise
it based on the review results thus forming a closed loop of product development;
Coordinate with engineering and marketing department to complete final review and launch mass production when
Educational Background of R&D Personnel R&D objectives are met.Halo Microelectronics' R&D product management framework not only follows up on product improvements and
amends but also establishes metrics for those involved in the project to measure progress and evaluate results sets up
communication channels between project teams to keep all members abreast of project developments.Educational background of
R&D personnel Proportion
Ph.D. 9.24% Drive innovation by motivating more people in the organization and foster a culture of innovation within the Extension Company. The Company's innovation incentive policy includes and is not limited to offering honorary titles as well as
prizes to teams with excellent project delivery and individuals for filing patent applications etc.Master's degree 32.61%
Bachelor's degree 53.26%
Associate degree 4.89% Assess overall performance. Determine if the R&D innovation objectives are met based on the product review.Examine organizational processes and improve efficiency by revising the management system thus closing the loop Enhancement
and improving the performance of the entire R&D and innovation management framework.
33 34Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Mutual Promotion for Win-Win Upholding the Spirit of Halo Microelectronics
Enriching Innovative Accomplishments Product Introduction Star line Products Product advantage
Halo Microelectronics has achieved widespread success in the analog chip market with its excellent performance
indicators. This includes DC/DC chips lithium battery charging chips port protection and signal switching chips
and voice coil motor driver chips suitable for the consumer electronics field as well as high/low side switch chips 1) High precision current limiting control
automotive Low Dropout Regulator (LDO) chips E-Fuses and Hot Swap chips intelligent power modules etc. de- Halo Microelectronics is committed to providing
solutions for various types of automotive and industrial 2) Ultra-fast OCP (Over Current Protection)
signed for cutting-edge fields such as automotive and cloud computing. applications. Halo Microelectronics' power switch response time
E-Fuses product series can drive capacitors inductors and HL8511/2 3) Supports single fault failure mode
active loads featuring comprehensive protection and HL8521/2
Product Star diagnostic functions to help users build systems with 4) Ultra-low hot plug and surge current
line Introduction Products Product advantage high stability safety and intelligence. 5) Effectively clamps VOUT to protect
devices
Halo Microelectronics independently developed a
proprietary control architecture that provides power
management chip solutions for boost and buck to
meet the quality requirements of consumer electronics
and automotive electronics. Halo Microelectronics'
high-performance DC/DC products integrate low 1) Extending battery life
DC/DC chip Rdson power MOSFETs offering a highly integrated HL7543 1) Excellent performance
high-density and streamlined peripheral device 2) Solution possessing smaller size Smart
Halo Microelectronics specializes in the fields of home
power appliance motor drives and power tool motor drives HL9901 2) High product integrationsolution for efficient power conversion. With globally offering solutions for motor driving and brushless DC Series
leading dynamic response performance and efficient modules motors. 3) Comprehensive and reliable protection
conversion efficiency they are particularly suitable for features
powering core power systems such as CPUs GPUs
LPPDR3/4/5 etc.The lithium battery charger product series produced 1) High charging efficiency
Lithium by Halo Microelectronics not only support mainstream
battery charging protocols such as USB PD UFCS and VOOC
2) High flexibility of solutions
charging they can also deliver extremely high charging efficiency HL7009A 3) High pin compatibility
chips to ensure lithium battery charging management schemes of efficient charging performance excellent 4) High degree of miniaturization and
safety and reliability for the users. integration
1) High integration of three-in-one
Port Halo Microelectronics provides various types of switching transmission function enabling
protection interface (port) protection products which integrate greater flexibility in system-level design
and signal the necessary protection features to ensure that they HL5280A
switching provide users with a power solution that equally 2) Integrated over-voltage protection
chip considers efficient charging and full protection. (OVP) and watchdog timer ensuring
system stability and reliability
Halo Microelectronics' innovative Optical Image
Voice coil Stabilization (OIS) chips are equipped with a 32-bit
motor DSP or MCU. The chips set a new standard in image DW9786 1) Built-in high-performance 32-bit MCU
driver chips stabilization and autofocus technology with enhanced
functionality and advanced performance.
1) Extremely low sleep power
consumption (less than 1uA)
High/low
side switch 2) Conduction impedance of only 80
chips At Halo Microelectronics we are committed to
HL8518 milliohms
developing and providing robust and high-quality
automotive grade (AECQ-100 qualified) products. 3) Precise load current detection
The Company's automotive products range from DC/ capability
DC converters and low dropout regulators (LDOs)
to protection switches suited for infotainment and 1) Higher power supply rejection ratio Automotive (PSRR)
LDO instrument clusters.regulator HL8743 2) Larger output current
chips 3) More comprehensive protection
features
35 36Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Mutual Promotion for Win-Win Upholding the Spirit of Halo Microelectronics
Halo Microelectronics at the 2023 Applied Power Electronics Conference Halo Microelectronics at the 2023 Electronica China
The Applied Power Electronics Conference (APEC 2023) was held in Orlando Florida USA. APEC as On July 11-13 2023 the 2023 Electronica China was held as scheduled at the National Exhibition and
the largest and exclusive exhibition and conference in the global power electronics/power supply Convention Center. As a leading domestic supplier of power management and signal chain chips
field gathered professional attendees and power electronics product suppliers from around the themed "Making life better with green energies" Halo Microelectronics showcased a variety of new
world providing a high-quality platform for industry colleagues to exchange ideas. products from seven major product lines including lithium battery charging management high-per-
formance DC/DC port protection automotive power supply AF and OIS motor driver and AC/DC at
From March 21 to 22 2023 Halo Microelectronics showcased a range of product demos at APEC of- the exhibition. The Company shared the latest technological achievements and solutions with many
fering five major solutions including USB Type-C interface protection automotive power and protec- industry professionals who attended the event.tion switches high-efficiency and large-current DC/DC motor drive solutions AF (Auto Focus) & OIS
(Optical Image Stabilization) sharing the latest chip R&D achievements in the industry attracting a
wide range of customers and partners for visits and exchanges.Halo Microelectronics Wins the "Outstanding Technical Breakthrough Award in the
Domestic Analog IC Industry"
On December 23 2023 "The Second Power Industry
Supporting Brand Award Ceremony" organized by 21Di-
anyuan was held in Shenzhen. Halo Microelectronics
was invited to attend and won the "Outstanding Tech-
nical Breakthrough Award in the Domestic Analog IC In-
dustry". This honor represents the industry's recognition
and high appreciation of Halo Microelectronics' continuous investment in the research and devel-
opment of high-performance analog integrated circuits. It also reflects the industry's expectation for
Halo Microelectronics to continue driving the development of the industry in the future.
37 38Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Mutual Promotion for Win-Win Upholding the Spirit of Halo Microelectronics
Halo Microelectronics honored with the "Chip Development in Yizhuang · 2023 Top
50 Automobile Chips"
From November 28th to 30th 2023 the "Chip Development in Yizhuang" event was organized under
the guidance of the Beijing Municipal Science and Technology Commission and the Beijing Munici-
pal Bureau of Economy and Information Technology hosted by the Management Committee of the
Beijing Economic-Technological Development Area and undertaken by Gasgoo. The event consisted
of three main components: an automotive chip competition an automotive chip conference and a
closed-door seminar. Among these Halo Microelectronics was honored with the "Chip Development
in Yizhuang · 2023 Top 50 Automobile Chips" during the automotive chip competition.This award recognized Halo Microelectronics' long-term dedication to the development and tech-
nological innovation of automotive chip products and its leadership in industry development. As
early as 2015 Halo Microelectronics' independently developed DC/DC chips were incorporated into
Qualcomm's global automotive-grade platform reference design. Up to now Halo Microelectronics'
automotive-grade products have been applied to car brands from China Germany Japan Korea and
other countries.
39 40Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Mutual Promotion for Win-Win Upholding the Spirit of Halo Microelectronics
Intellectual Property Protection
Halo Microelectronics places great emphasis on invention and innovation and insists on integrating patent creation
throughout the project research and development and production operations.In accordance with the Patent Law of the People's Republic of China the Detailed Rules for the Implementation of the
Patent Law of the People's Republic of China and other laws regulations and related provisions the Company has
established a Patent Management Committee which is overall responsible for the Company's patent-related work. The
Company has formulated the Intellectual Property Management Measures completing the management systems of
research and development and intellectual property supporting and promoting technological breakthroughs and the
application and promotion of achievements and expanding the Company's leading business advantages.
41 42Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Mutual Promotion for Win-Win Upholding the Spirit of Halo Microelectronics
With the extensive experience of the founding team in the field of analog chips and the continuous research and As of the end of the reporting period Halo Microelectronics has obtained a total of 69 invention patent grants including 41
development by the central technical team Halo Microelectronics has formed a core technology system with domestic invention patents and 28 overseas ones with a patent application grant rate of 100% over the past five years.strong industry competitiveness playing a crucial role in each series of main products. As of the end of the report-
ing period the Company possesses 8 main core technologies all of which are independently developed. Each
core technology has applied for intellectual property protection as detailed in the following table:
694128
Core Technology Invention patent Domestic Overseas No. Category Source Introduction Application Scenario grants invention invention
patents patents
Innovative hysteresis control method
High-performance Independent to achieve rapid load dynamic
1 DC/DC conversion research and response high efficiency low ripple Consumer electronics
technology development and smooth switching between such as smartphones
control modes
Efficient switch-mode charging and All of Halo Microelectronics' patents are applied to products with core technologies utilized in the design of main
Lithium battery Independent hybrid fast charging circuit topology products such as DC/DC chips super-fast charging chips lithium battery fast charging chips port protection chips
2 fast charging research and to meet the changing fast charging Consumer electronics
technology development needs during the lithium battery such as wearable devices signal switching chips and automotive and industrial grade products. It has not only established a leading technical
charging cycle position of its products within the country but also made continued efforts to realize industrial application.Charge pump
super-fast Independent
High-efficiency and high-reliability
3 research and charge pump buck topology and Consumer electronics charging development corresponding driving and protection such as smartphonestechnology circuit technologies
Including high-performance AC/ Patent Technology Application Boosts Product Development
DC conversion topologies and
Power conversion Independent corresponding closed-loop control White goods industrial 4 technology research and algorithms as well as high-reliability control servo systems Patents Empower Product Upgrades and Iterationsdevelopment high-voltage power device gate etc.driving and other analog integrated Since being proposed in 1965 the spirit of innovation
circuit technologies. embodied by Moore's Law has been driving the semi-
High- Various high-performance analog conductor industry forward and continuously chang-
performance Independent integrated circuit modules including Consumer electronics ing the world. As a company that upholds the spirit
5 general-purpose research and LDOs charge pumps AD converters automotive electronics of innovation Halo Microelectronics keeps breaking
analog integrated development current detectors multipliers driver etc. through its limits leveraging core patents that encap-
circuit modules circuits etc. sulate innovative technologies to facilitate the upgrade
and iteration of products. Leveraging core research
Including various new receiver-end
Efficient and power conversion topologies for low- achievements such as high-performance DC/DC con-
high-flexibility Independent frequency wireless fast charging and Consumer electronics version technology lithium battery fast charging tech-6 wireless charging research and high-frequency wireless charging such as smartphones nology and charge pump super-fast charging technol-
technology development system architecture and control and wearable devices ogy the Company has developed a series of products
methods supporting high flexibility that are highly efficient low power consuming and
highly reliable which greatly improve user experience
Automotive and Independent Including high-performance power industrial-grade conversion and load switch analog Automotive electronics and receive wide market recognition. For example 7 analog integrated research and integrated circuit technologies with data centers etc. for wearable device applications the Company has
circuit technology development high stability safety and reliability launched several high-performance charging chips to
provide users with a more efficient safer and more
Including port ESD circuit reliable charging experience.Port protection
and signal Independent
protection surge protection and
8 research and load switch anti-lock protection
Consumer electronics
switching circuit development circuit technologies to achieve port
such as smartphones
technology protection and signal switching with and laptops
minimal impact on signal bandwidth.
43 44Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Mutual Promotion for Win-Win Upholding the Spirit of Halo Microelectronics
Ensuring Product Quality
HL7095 an I2C-controlled single-battery charging management chip with two LDOs Upholding the quality motto of "Quality is the Lifeline" Halo Microelec-
Quality objective at
tronics is committed to ensuring exceptional product quality stead- company level:
Product advantages: fastly providing customers with high-quality products and services.
1. A wider input operating voltage to help enhancing power efficiency and energy savings. The HL7095 The Company adheres to the ISO 9001 Quality Management System -
supports a wide input operating voltage ranging 3.9 V to 12 V meeting the needs of various fast charging Requirements has established a comprehensive quality management Exporting defective rate for consumer
scenarios. It not only improves the power supply's reliability stability and efficiency but also saves energy products < ppm;system and drafted a Quality Manual to strictly control product delivery 100
reduces power loss and decreases the failure rate of the power supply.standards. Quality policies objectives audit results data analysis cor- Out-of-factory defective rate for
2. Dual LDO integration upgrade to satisfy lightweight and portable needs. The HL7095 integrates two rective and preventive measures and management reviews are imple- automobile grade products < 1 ppm.
LDOs capable of powering accessories such as headphones or LEDs making it an ideal choice for small-sized
wearable devices. This product effectively simplifies system design achieving the lightweight and portability mented and followed to guarantee continuous improvement in quali-
of wearable devices and bringing a more convenient and flexible user experience. ty services (including delivery) price technology and management.
3. Innovative power management technology to effectively extend battery life. The HL7095 facilitates
quick battery charging with +/-0.5% charging voltage accuracy and a 10 mV step size. Under low quiescent Business Continuity Management
power consumption in transportation mode and efficient reverse boost mode the HL7095 can significantly
extend device use time and reduce battery power consumption effectively addressing power management To further refine the Company's operational management mechanisms reduce or eliminate the impact of various fac-
issues in wearable devices. tors that may cause significant business operation interruptions quickly restore business interrupted under special cir-
cumstances and enhance the Company's business continuity management capability an organizational guarantee has
been provided by establishing a Business Continuity Management Committee. Working Rules of the Business Continuity
Management Committee has been formulated to ensure the orderly and effective operation of the Committee and fully
leverage its role in the Company's business and management. In terms of institutional guarantees the Company has de-
veloped the Business Continuity Management Procedures and put strong efforts to establish a business continuity man-
HL7132D a novel dual-phase 30 W charge pump charging chip with a 1:2 reverse
boost mode agement system that aligns with its strategic objectives so as to ensure the continuous operation of the business.The Company emphasizes prevention of business interruption by establishing prevention and early warning mechanisms
Product advantages: to effectively integrate daily management with emergency response. People is prioritized with a focus on ensuring per-
1. Smaller chip size to enable higher design flexibility for prod- sonnel safety. It implements differentiated management to ensure the rapid and orderly restoration of critical business
ucts. Compared to competitive products from other companies under special circumstances while considering the cost and benefits of business continuity management. Coordinated
the HL7132D has a smaller packaging size thereby reducing the and collaborative operations are insisted with emphasis put on communication and coordination among departments
area taken by the system and enabling higher system-level de-
sign flexibility making the overall solution more compact. to form an effective overall mechanism for responding to operational interruptions.
2. Reduced heat loss to efficiently enhance product battery
life. Compared to competitive products from other companies Regulating Suppliers Management
the HL7132D has a higher energy utilization rate which means Given the characteristics of the Fabless business
less energy loss and heat production that enhances the prod-
uct's energy-saving and environmental performance efficiently model the stability of Halo Microelectronics'
improving battery life and providing users with a more lasting product quality is highly related to the production
usage experience. level of manufacturing suppliers. The Company
3. More precise temperature regulation to effectively extend strictly controls supplier admission and dynam-
product lifespan. Compared to competitive products from other ically adjusts its supplier list and has formulated
companies the HL7132D features a unique chip temperature the Supplier Management Control Procedures
regulation function. With this function the HL7132D can better and Supplier Production Operation Standards to
control and regulate chip temperature thereby improving sys-
tem stability and reliability extending the product's lifespan clarify work principles and processes for suppliers.and offering users an exceptional use experience. Suppliers of the Company must strictly follow the
relevant policies to ensure that their product qual-
ity meets the Company's and customers' needs.
45 46Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Mutual Promotion for Win-Win Upholding the Spirit of Halo Microelectronics
Supplier Confirmation Supplier Risk control
Risk Level Category No Risk
1 Supplier operation stop due to financial issue
Supplier Preselection Production Supplier Confirmation of Qualified 2 Capacity limitation caused delivery failure
Certification Suppliers 3 Products damage due to poor ESD protecting
The Supply Chain Team and 01 Supplier certification is re- 02 Production suppliers that pass 03 4 No Standard procedure caused NPI failure
Quality Assurance Team are quired for suppliers classified the quality system audit and 5 Products Damage during manufacturing
liable for evaluating the sup- as Risk Level I. The Company process audit can become
pliers of products and inves- should also audit the quality qualified suppliers. Those 6 Wrong material used for production
tigating their capabilities from management systems and on- already included in the list of Manufacturing 7 Expired material used for production
the aspects of basic situation site quality control of pro- qualified suppliers should be
current production and quality duction suppliers requiring audited and considered for 8 Wrong tooling used for production
management status and ISO suppliers to rectify any identi- recertification regularly or as 9 Wrong operation due to poor training
9001 Quality Management Sys- fied issues. necessary. 10 Measurement system is not accurate
tem certification. Production I
suppliers must be certified 11 Inspection unable to detect disqualified products
by ISO 9001 and ISO 14001; 12 Wrong process parameter was applied
otherwise they will not pass 13 Poor process control caused low yield and non-conformity products
the preselection.
1 Poor labeling process control caused Lot mixing
Labeling
2 Poor print quality caused information missing
1 Poor storage H/T control caused material property to deteriorate
Storage 2 Storage control failure caused issue products deliver to customer
Supplier Risk Management 3 Poor storage control caused products damage
1 Products damage during transportation
Halo Microelectronics has established a system of Supplier Risk Management to improve the risk classification Transportation 2 Failure to deliver on time
process system determine their risk levels and develop targeted risk response measures for risk management.Risk Level Category No Risk
Risk Categorization Flow 1 Fail to supply
Assistant material
2 Poor quality
1 Products damage during transportation
Supplier Risk Classification II Logistic 2 Products Missing
OP QA 3 On time delivery failure
Product Test 1 Test equipment not availableN
Supplier Product related supplier
identification supplier Out of Scope
2 Test equipment not calibrated
Risk level
Y
Supplier
categorization Response to Sudden Supply Chain Risks
Risk level 1 Risk level 2
Assistant Product Test Halo Microelectronics is committed to developing a robust safety response mechanism of suppliers. To ensure timely Manufacturer Material Forwarder supplier prevention and effective response to sudden supply chain risks and safeguard stable and continuous business operation
the Company has formulated an Emergency Response Plan for Sudden Incidents in the Supply Chain to specify emer-
gency management of sudden incidents in the supply chain. In order to effectively implement this Plan the Company
following the principle of "nimble response and efficient operation" has established an emergency organizational struc-
ture for sudden incidents in the supply chain in accordance with the requirements of business continuity management
and emergency response. This organization includes an emergency leadership team an emergency command team an
47 emergency execution team and an emergency support team. 48Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Mutual Promotion for Win-Win Upholding the Spirit of Halo Microelectronics
Based on the supplier management system Halo Microelectronics has established a strict supplier review mecha- Since 2023 Halo Microelectronics has received numerous honors including the "Chip Development in Yizhuang ·
nism to conduct regular supplier reviews continuously optimize the supplier structure and improve supplier quality. 2023 Top 50 Automobile Chips" the "Best Delivery Award 2023" from vivo the award of "2023 Annual Supporter"
from Transsion Holdings and the "Best Strategic Partner 2023" from Q Technology.Person in charge Duty In June 2023 Halo Microelectronics as the leading team of the project of "Configurable Multi-Channel High/Low
Quality Assurance Team To organize the initial and quarterly reviews for production suppliers Side Driver Chip" was included in the list of nominees for 2023 annual automotive-grade chip technology initiative
Quality Assurance Team Supply
Chain Team To conduct reviews of production suppliers
"Unveiling Commanders" for major tasks.Quality Assurance Team To summarize review results and notify the reviewed suppliers
Quality Assurance Team To maintain the qualified supplier list
Deputy General Manager of
Engineering To approve the qualified supplier list Halo Microelectronics Wins the "Best Delivery Award 2023" from Vivo
On December 13 2023 the global leading smartphone brand
28 Number of potential suppliers rejected 0 Vivo held the 2023 Quality Communication Meeting with Number of suppliers for non-compliance Business Partners in Dongguan Guangdong attended by Vivo
partners from around the world. At this Meeting Halo Micro-
Number of suppliers in China (the 16 15 electronics was honored with the "Best Delivery Award 2023" Chinese mainland) Number of ISO 9000 certified suppliers by Vivo.Number of suppliers in China (Hong Kong
Macao and Taiwan) and foreign countries 12 Number of ISO 14000 certified suppliers 15
Number of suppliers reviewed 12 Number of ISO 45001 certified suppliers 11
Number of suppliers suspended for non-
compliance 0 Focusing on Information Security
Information Security Management System
Valuing Customer Experience Halo Microelectronics places great importance on the construction and perfection of its information security system
has formed a comprehensive Information Security Management System (ISMS) and technical support scheme that
Upholding the principle of Customer Priority Halo Microelec- cover network systems physical environments document data security and monitoring of user behavior effective-
tronics regularly conducts customer satisfaction surveys viewing ly safeguarding customer confidential information key data security and reputation and providing customers with
customer feedback as a powerful means to drive technological a reliable information security defense.improvement and business development. In response to com-
plaints the Company has established systems such as Customer 100 %
Complaint Handling Procedures and Customer Complaint Analy- Access control/entry systems video surveillance and intrusion detection systems are used to restrict access to Complaint
Handling Rate these critical areas to authorized personnel only.sis Procedures put strict control over after-sales services aiming
to optimize customer experience and seize opportunities for con- Physical Each machine room is equipped with temperature warning and fire alarm devices to ensure the safety of data Environment and equipment in emergencies.tinuous improvement. Security
The Company keeps enhancing the power supply assurance of computer systems increases the capacity of
In 2023 complaints were resolved on average within 9 working Uninterruptible Power Supply (UPS) systems in physical machine rooms and has adopted cloud-based service
days with the complaint handling rate maintained at 100%. assurance solutions for core business systems to further enhance the physical security assurance of the system.
49 50Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Mutual Promotion for Win-Win Upholding the Spirit of Halo Microelectronics
The Company employs firewalls resource monitoring systems and security updates to prevent unauthorized ac-
cess malware and cyberattacks. 0 0 0
Regular vulnerability scanning and penetration testing are conducted to promptly address potential security Number of breaches Number of business Number of business to network and system downtimes in system downtimes in
vulnerabilities. The implementation of Virtual Private Networks (VPN) and encrypted communication ensures the information systems 2023 2023
security of data during transmission. in 2023
Establishing secure Wi-Fi networks restricting device access and strengthening the management of network de-
vices are also crucial steps in ensuring the safety of network systems.Halo Microelectronics has introduced a mature computer resource monitoring management system providing
24/7 monitoring of all server/firewall/switch/network connections and other core resources across the Company's
data centers. In case of resource abnormalities alerts are sent to relevant managers through corporate WeChat/ Dedication to Society for Common Benefit
email and other means ensuring the secure operation of the Company's critical system resources.Network In 2023 Halo Microelectronics established a cloud-network strategic partnership with China Unicom using its
System comprehensive global network resources to build dedicated network interconnections for the Company's do-
Accelerating Collaborative Development
Security mestic and overseas offices. The cloud-network has been successfully deployed in Foshan Beijing Shanghai and
other locations abroad significantly enhancing network security and reliability. As a multinational corporation Halo Microelectronics places great emphasis on team building both domestically
and internationally reinforcing the development pattern of "taking domestic major circulation as the focus with
Chengdu- Chengdu- Shanghai Beijing
HT South Pidu SD WAN CPE SD WAN CPE domestic and international dual circulations reinforcing each other." Through organizational restructuring and in-
ternational collaborative efforts the Company is promoting economic exchanges and collaborative development
among regions both at home and abroad.
10M 20M 10M While continually innovating and providing customers with higher quality products Halo Microelectronics keeps（To Do）
Legends： deepening industry exchanges shares research resources and cutting-edge technological knowledge to expand
Existing IPSec Direct the breadth and depth of technological research collaborates with the industry academia and research institu-
10M SD WAN 20M Connection on Equipment：
Newly Added SDWAN： tions to tackle industrial challenges and accelerates the research and application of new technologies sharing
Shenzhen Foshan Overseas Offices the dividends of development with all stakeholders.SD WAN CPE SD WAN CPE
The Company implements access control allowing only authorized personnel to access specific files and data. Im-
portant data is encrypted to prevent unauthorized access during data transmission and storage. Data is regularly Halo Microelectronics Signed the Share Purchase Agreement and Intellectual
backed up and the secure storage of backup data is ensured for restoration when needed. Property License Agreement with Navitas Semiconductor Corporation
Halo Microelectronics' IT Department employs various methods to ensure file and data security including Bit- In 2023 Halo Microelectronics collaborated with Navitas Semiconductor Corporation (NASDAQ: NVTS) which spe-File Data
Security locker hard drive encryption OneDrive cloud drive backup and NAS dedicated storage device backup. In 2023 the cializes in the third generation of semiconductors such as gallium nitride and silicon carbide and signed the Share
Company initiated research on implementing a file classification and encryption system which classifies import- Purchase Agreement and Intellectual Property License Agreement.ant files of the Company into several levels such as top secret confidential secret and internally controlled. Files
Through this transaction Halo Microelectronics will better focus on high-performance analog products for key
of different security levels are accessed and managed by colleagues with corresponding permissions ensuring
target markets and related application scenarios; At the same time by acquiring the shares of NVTS the Company
that files even if illegally copied and disseminated cannot be opened.can share the benefits of Navitas Semiconductor Corporation's further development in the third generation semi-
The Company enforces a strong password policy and requires employees to regularly change their passwords. A conductor field and achieve a win-win situation of 1+1>2.user account management procedure is established to timely disable accounts that are no longer needed.Monitoring of employees' internet activities to promptly identify any abnormal behavior. Training is provided to
make employees aware of best security practices and emphasize the risks of social engineering attacks. An audit
User mechanism is established to track and review user activities ensuring that they comply with the Company's se-
Commitment to Enterprise-University Cooperation
Behavior curity policies. In domestic offices the Company has implemented USB copy permission control allowing only
Regulation registered and authenticated USB drives to be used on office computers test benches and external computers. On the basis of self-developed new products and new applications in-house Halo Microelectronics endeavors to
In the first half of 2023 the Company implemented remote access and mobile device management policies based participate in enterprise-school partnership to forecast future-proof new technologies. Our partners encompass
on the Office365 system ensuring that only company computers and certified personal mobile devices can access eminent research universities and research institutions from all around the globe. Efforts will be made to promote
critical resources such as company email cloud storage and document service sites. This further strengthens the the deep integration of production education and research and help train talents for the strategy of "scientific
security of critical company information while eliminating unsafe external access. and technological innovation".
51 52Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Mutual Promotion for Win-Win Upholding the Spirit of Halo Microelectronics
Research results of collaboration between Halo Microelectronics and Princeton Promoting Rural Revitalization
University are granted patents
Halo Microelectronics actively practices the national strategy for rural revitalization fully advancing the cause of
The Halo Microelectronics-Princeton collaboration is working on a multi-output hybrid power supply architecture rural assistance. In 2023 the Company carried out 2 rural revitalization projects benefiting 30 local residents.for the next-generation core architecture processors. Researchers from both parties jointly invented a two-stage
multi-output power supply architecture based on a hybrid charge pump circuit.Charitable Activities in Fengkai County
In February 2023 a patent entitled "Power Conversion Circuits and Electronic Devices" (CN202211387831X)
was granted to Halo Microelectronics and Princeton University. The results of the project were presented at the
3D-PEIM conference of the International Institute of Electrical and Electronics Engineers Electronics Packaging So-
ciety (IEEE-EPS) in Orlando USA in early February 2024 and won the best paper award at the conference.Halo Microelectronics Sets up "Science & Technology Innovation Award" to Support
the Growth of Youths in Nanhai
On December 30 2023 the 20th "Zhan Tianyou Cup" Youth Science and Technology Innovation Contest in Nanhai
District held its project showcase and award ceremony. The aim of the contest is to deepen the awareness of sci-
entific innovation among young people cultivate students' comprehensive qualities comprehensively promote
science popularization in Nanhai District and create a strong atmosphere of "learning science loving science and
doing science."
Contributing to Social Welfare
Halo Microelectronics actively practices its social responsibilities remains committed to public welfare and dedi-
cates care and services to society through concrete actions. The Company strictly adheres to laws and regulations
such as the Company Law of the People's Republic of China the Charity Law of the People's Republic of China
and the Law of the People's Republic of China on Donations for Public Welfare and has formulated the External
Donation Management Methods to standardize the Company's external donation activities and strengthen the
management of donation-related issues enabling the Company to better fulfill its social responsibilities. In 2023
the Company made charitable donations amounting to nearly RMB 30000.
53 54Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Mutual Promotion for Win-Win Upholding the Spirit of Halo Microelectronics
People-Oriented for Mutual Growth
Halo Microelectronics' Education Support Activities Help Students Pursue Their Dreams
Ensuring Fair Employment
On October 19 2023 as a part of the Company's social responsibility practice a charity team from Halo Microelec-
tronics visited Qiling Village Dazhou Town Fengkai County in Zhaoqing City to carry out education support activi-
ties. They showed care in the name of Halo Microelectronics and delivered warmth by passing the "Halo Strength". Halo Microelectronics strictly adheres to laws and regulations such as the Labor Law of the People's Republic of
The Halo Microelectronics charity team provided financial and caring support to children from several families and China the Labor Contract Law of the People's Republic of China and the Regulation on the Implementation of
delivered custom clothing to students at Qiling Primary School to keep them warm in the forthcoming autumn the Employment Contract Law of the People's Republic of China. It has established the Human Resources Con-
and winter. They encouraged the children to set lofty ideals and prepare themselves with knowledge. trol Procedures which mandate that the HR and Administration Department shall select and recruit outstanding
talents through public recruitment and position-based competition as required by requirements of the Human
Resource Capability Framework. The selection process follows the principles of virtue-first and talent-based and
openness fairness and justice with a focus on the candidates' value orientation and sense of responsibility. The
Company promises to strictly implement the Provisions on the Prohibition of Using Child Labor the Special Pro-
tection Regulations for Underage Workers as per the State Council's guidelines and EICC standards. It has devel-
oped the Child and Juvenile Workers Prevention Control Procedures to resolutely eliminate the employment of
child labor and forced labor.By the end of 2023 the Company had a total of 286 employees with 95 new hires within the year in which female
employees accounted for 31.6%.Employees in China (Hong
Kong Macao and Taiwan) and 67
foreign countries
95 Employees in China (the Newly hired employees Chinese mainland) 219
Newly hired female employees 30
Male 190
Newly hired male employees 65
Female 96
286
Newly hired fresh graduate
Total number of employees 15
employees Under 30 93
Newly hired social recruitment
employees 80
Over 50 24
Note: Statistics as of December 31 2023
55 56Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Mutual Promotion for Win-Win Upholding the Spirit of Halo Microelectronics
Protecting Legitimate Rights and Interests
Held Workers' Congress Session
Remuneration and Benefits On December 4 2023 the Company held The First Session of the Second Workers' Congress 2023 which deliber-
ated on the election of worker representatives to the second Board of Supervisors and the revision of the Manage-
Halo Microelectronics has established a scientific and rational compensation management and benefits mechanism. ment Regulations of Workers' Representatives.In strict compliance with the Labor Contract Law of the People's Republic of China and the Labor Law of the People's
Republic of China among other laws and regulations it has developed the Remuneration Management Methods. In ad-
dition to standard salaries it punctually and fully pays "five insurances and one housing fund" sets up stock incentive
plans actively supplements various special awards and reasonably stimulates the intrinsic vitality of talents.
6.24 Days 100 %
Average Paid Leaves of Employment contract Supporting Career Development
Employees coverage
Halo Microelectronics places great emphasis on human resource development and talent cultivation. It has formulated
the Training Management Regulations of the Company and established a long-term mechanism for employee training
creating a cultural atmosphere that respects knowledge and talent and cares about employees' career development.This strengthens the construction of a reserve talent pool promotes the continuous updating of knowledge and skills
100 % 100 % for all employees and continuously enhances employees' comprehensive abilities.
Social insurance Employee critical illness
coverage insurance coverage
In 2023 the Company conducted 13 employee training sessions
with training expenses totaling RMB 226300 reaching 38
Democratic Management hours of training and a coverage rate of 67% among employees.Based on laws and regulations including the Labor Law of the People's Republic of China the Trade Union Law of the
People's Republic of China the Company Law of the People's Republic of China and the Provisions on Democratic
Management of Enterprises and in conjunction with the Company's actual situation Halo Microelectronics has for-
mulated the Regulations of the Workers' Congress. With the Workers' Congress functioning as the basic approach the
Company keeps improving its democratic management system to promote democratic construction motivate em-
ployee enthusiasm inspire creativity realize democratic and scientific decision-making and promote sustained and
healthy development of the Company. The Company has offered various communication channels for employees in-
cluding QR code feedback surveys and employee discussion sessions to ensure the reasonable rights of employees.Training in the third quarter Training in the fourth quarter
57 58Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Mutual Promotion for Win-Win Upholding the Spirit of Halo Microelectronics
Halo Microelectronics values employee career
development and is committed to providing em-
ployees with a good platform for career develop- Honors of Employees
ment. The Company crafts scientific career paths
continually enhancing employees' abilities and
values to achieve synchronized development and
progress between the Company and its employ-
ees. The Company opens up the opportunity to
compete for internal management positions for
all employees by irregularly posting management
position needs. Employees can achieve personal
career development and promotion through in- Foshan City Artisan (Tan Xiaoliang)
ternal competition system.Safeguarding Health and Safety
Halo Microelectronics cares about the physical and mental health of employees. It has arranged annual physical
examinations and organized regular sports activities for employees including buying them gym memberships to
encourage employees to balance their work and leisure and take care of physical health. Additionally the Company
has developed the Occupational Health and Safety Management Procedures improving the management proce-
dures for employee health management office space management and management of work injuries and occupa-
tional diseases to safeguard employees' physical and mental health.In 2023 the coverage rate for Halo Microelectronics' physical examinations and health records reached 100%; in-
vestment in occupational injury insurance for employees was RMB 520000 with a coverage rate of 100%; 145 em-
ployees participated in occupational disease examinations ensuring all those in need are examined; and the social
insurance coverage rate reached 100%.Halo Microelectronics actively conducts safety training to strengthen employees' awareness of safety and ensure
workplace safety and personnel safety. In 2023 58 employees participated in safety training and the Company's
safety production training lasted 8 hours.Fire Safety Drills Held at Qiandenghu Venture Capital Town in the First Half of 2023
Emphasizing Humanistic Care
In 2023 the Company collaborated with the property
management to conduct fire safety drills including ex-
pert lectures and on-site drills. These activities allowed Halo Microelectronics advocates a people-oriented approach and humanistic care actively engaging in
employees to get first-hand experience in fire scenes employee care activities organizing diverse employee events and striving to provide comprehensive care
and firefighting safety scenarios directly feeling the im-
portance of fire safety. and protection for employees to enhance their sense of happiness and belonging.
59 60Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Refining Governance and Upholding Integrity
Refining Governance and
Upholding Integrity 07
Checks and Balances for Optimized Governance
Risk Avoidance and Compliance Governance
Vigorous and Resolute Actions in Rights and
Interests Protection
61 62Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Refining Governance and Upholding Integrity
Refining Governance and Remuneration and Appraisal
Upholding Integrity Shareholders' General Meetings 6 times Committee meetings 3 times
Meetings of the Board of 13 Strategy and Development Directors times Committee meetings 4 times
Checks and Balances for Optimized Governance Meetings of the Board of
Supervisors 13 times
Lean Top-Level Structure Audit Committee meetings 8 times
In 2023 Halo Microelectronics strictly followed the requirements of laws and regulations such as the Company Nomination Committee meeting 1 time
Law Securities Law Guidelines on the Bylaws of Listed Companies and Rules Governing the Listing of Stocks on
the Science and Technology Innovation Board of Shanghai Stock Exchange and updated the Articles of Associa-
tion of Halo Microelectronics Co. Ltd. in accordance with its actual situation. Following the principles of science
simplicity efficiency transparency and checks and balances the Company has considering factors such as its Diverse Board Governance
development strategy cultural philosophy and management requirements reasonably established internal func-
Halo Microelectronics is committed to opti-
tional organs clearly defined the responsibilities and authorities of each organ to avoid function overlapping and
mizing the corporate structure and continu-
gaps or excessive concentration of powers and responsibilities and formed a working mechanism where duties
ously improving the corporate governance 2
are clearly defined responsibilities are taken seriously and mutual checks and coordination are achieved. 8
system to ensure sustainable and stable directors female
development of the Company. The Company director
attaches importance to the diverse composi-
Shareholders' General Meeting tion of its management team. The selection
Audit Committee
Board of Supervisors of the members of the Board of Directors
and Supervisors is not based on physical 3 1
Strategy and Development Committee characteristics such as gender age or social independent female
Board of characteristics such as ethnicity nationality directors director
Directors religious beliefs and economic conditions.Nomination Committee
Halo Microelectronics has established the Independent Director Work System to strengthen the supervision and monitor-
Remuneration and Appraisal Committee ing of company decisions. Independent directors are not controlled by the Company and do not engage in daily business
Senior Management activities. They fully exercise their independence and professionalism independently judge and objectively comment on
major company matters to ensure the fairness and legality of company decisions.In addition to advising the Board of Directors on the remuneration policy and procedures the Remuneration and Appraisal
Halo Microelectronics has set up the Audit Committee Strategy and Development Committee Nomination Com- Committee under the Board of Directors also carries out review of the remuneration system and criteria set for the directors
mittee and Remuneration and Appraisal Committee under the Board of Directors and drawn up the scope of and the senior management by taking into relevant and reasonable factors such as the remuneration level in comparable
duties and detailed implementing rules for each special committee to fully leverage their specialized advantages companies duties and duration of incumbency business performance of the Company and potential future risks then
guarantee the legitimacy scientificity and correctness of the collective decisions of the Board of Directors and submits the results from their review to the Board for further consideration. The Company discloses the remuneration of di-
reduce the operation risk of the Company. rectors supervisors and senior management in the annual report each year and explains the decision-making process basis
of determination and actual payments for remuneration to enhance the transparency of remuneration for directors supervi-
sors and senior management thereby safeguarding the legitimate rights and interests of all shareholders.In addition the Company has purchased liability insurance for directors supervisors and senior management personnel.
63 64Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Refining Governance and Upholding Integrity
Risk Avoidance and Compliance Governance Optimizing Internal Control Compliance
Halo Microelectronics is promoting the establishment and improvement of internal control systems and pro-
Optimizing Risk Mechanism cesses in accordance with the Internal Control Assessment Management Methods and its supporting application
guidelines. The Internal Audit and Internal Control Departments implement internal control assessment work
Halo Microelectronics places great emphasis on risk management. Guided by its development strategy and in according to the supporting evaluation guidelines checking and evaluating the effectiveness of internal control
conjunction with the actual situation of production operations and management the Company has established a implementation. The Company conducts annual internal audit to audit domestic companies and overseas sub-
standardized and effective risk management and internal control system to continuously enhance risk prevention sidiaries regularly with internal audit reports issued.capabilities and management levels as well as ensure safe and stable operation.Halo Microelectronics pays attention to regulatory compliance management construction. It has formulated the
Establishment of Three Lines of Defense Internal Compliance Procedures for Export Control Information Confidentiality Management System and Code
The first line of The second line The third line of of Conduct for Business Secret Management in accordance with relevant national laws and regulations strength-
defense of defense defense ening the Company's compliance management in export control and commercial secrets. Specific requirements
and processes for company compliance management have been clarified.Sales marketing purchas- Finance legal affairs quality Internal audit and other inde-
ing R&D and other business control and other review pendent inspection depart-
departments departments ments
Contract Review Administrative Investigation of export Other System
Document Review control compliance Reviews
Risk identification and early warning The Company has The Company has estab- The Company has The Company has devel-formulated the Contract lished the Administrative developed the Internal oped the Documented
Management Methods to Document and Informa- Compliance Procedures Information Control
Halo Microelectronics has developed the Risk and Opportunity Control Procedures to improve its risk and op- manage the process of tion Circulation Control for Export Control to miti- Procedures to make sure
portunity management work. The Company organizes annual management review meetings through the QMS contract signing per- Methods to strength- gate trade compliance that the internal systems
which includes a refreshed review of various risks and opportunities the Company faces so as to assess identified formance modification en the supervision of risks. are reviewed by relevant
and termination dispute internal documents and departments before
risks and formulate corresponding strategies. resolution and contract ensure the security and being released.archival management accuracy of information
Risk control and tracking aiming to reduce risks during its circulation.prevent contractual
disputes and improve
Halo Microelectronics focuses on the categorized hierarchical and centralized management of major decisions economic efficiency.risks and events with procedures such as Human Resource Risk Control Procedures and Supplier Risk Man-
agement developed. It has constructed a key risk response list to clarify the division of responsibilities between
leading and executing departments for risk. For significant emergency risk events 5 emergency plans have been
developed to fully implement responsibilities of risk management among all staff.Halo Microelectronics places great importance on the construction of compliance awareness actively organizing
internal legal and compliance studies regularly conducting compliance training organizing company-wide com-
pliance training every year to clarify compliance standards and requirements in daily work. Training is combined
1. The Company collects risk responsibility
events from various departments every with real cases to help employees understand the importance of compliance better further enhance their compli-
quarter for risk analysis and the formulation of ance awareness and foster good compliance habits.response measures.
2. The Company reviews and refreshes the Risk
and Opportunity Assessment Table every year.
65 66Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Refining Governance and Upholding Integrity
Strictly Observing Business Ethics Vigorous and Resolute Actions in Rights and
Halo Microelectronics strictly adheres to business ethics upholds the principle of fair competition actively participates Interests Protection
in market competition and continuously enhances its core competitiveness. The Company explicitly prohibits unfair
competitive practices emphasizes integrity in business and maintains market order. In the meantime it focuses on
maintaining good cooperative relationships with partners jointly promoting the healthy development of the industry. Investor Relation Management
Halo Microelectronics adopts a "zero tolerance" policy towards corruption and bribery committed to creating a clean Halo Microelectronics places high importance on investor relations
working environment. The Company keeps improving the anti-corruption system and has formulated the Integrity management strictly adhering to the Company Law Securities
and Anti-corruption Management Methods to strengthen the construction of company working style and promote a Law Work Guidelines for the Investor Relations Management of
culture of integrity. Listed Companies Articles of Association and other legal and reg-
To strengthen the internal management and supervision of the Company ulatory requirements. The Company has formulated the Investor
and promote the standardization and compliance of business activities Relations Management System to standardize the management
Halo Microelectronics has taken a series of measures: developing the Dis- of investor relations while keeps enhancing the level of investor
tributor Registration and Level Management Regulations and requiring relations management deepening investors' understanding of the
the completion of the Halo Microelectronics Distributor Survey Form and Company on an ongoing basis comprehensively improving inves- Investor research activities
Halo Microelectronics Distributor Customer Reporting Application Form tor communication channels and engaging in multidimensional
to ensure standardized and compliant operations. It requires suppliers exchanges and interactions to help with investors' understanding
to sign the Supplier Integrity Practice Commitment to promise that they 105 and value recognition of the Company's business.will adhere to the Company's relevant integrity practices and regulations Number of participants of anti-
corruption trainingNumber of
and conduct regular self-inspections. The Company has formulated the participants of anti-corruption training
Gift Receipt Registration Form and the Integrity Violation Complaint Ac-
ceptance Registration Form encouraging integrity violation reporting.hosted performance pre- engaged in SSE e-interactions
sentations
3 times 14 times
Hosting an "Integrity and Anti-corruption Promotion and Education" Event
In June 2023 the Company conducted a training session on "Integrity and Anti-corruption Promotion and Education" answered investor calls published investor relations
which is themed on the Integrity and Anti-corruption Management Methods explains articles of law with cases and activity summaries
introduces the Company's 17 codes of conduct of integrity and honesty thereby guiding employees to take "faithfully 49 times
fulfilling duties and integrity" as the foundation in their work and life and creating a clean and honest culture of the 16 times
Company.cumulatively received investors
511 person-times
67 68Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Refining Governance and Upholding Integrity
Protection of Shareholders' Rights Standardizing Information Disclosure
Halo Microelectronics continuously improves the corporate governance structure in strict accordance with rele- Halo Microelectronics strictly adheres to the stipulations of the Securities Law Company Law Measures for the
vant laws regulations and departmental rules operates in compliance with legal and regulatory requirements Administration of Information Disclosure by Listed Companies Rules Governing the Listing of Stocks and the
ensures that the convening and decision-making processes of meetings of Shareholders Board of Directors and Company's Articles of Association. It has formulated the Information Disclosure Management System to improve
Board of Supervisors are legal and effective. Directors supervisors and senior management diligently fulfill their the construction of the Company's information disclosure system ensuring that the information disclosed is
duties to ensure orderly production and operational activities. The Company treats all investors equally ensur- truthful complete and accurate in order to protect the legal rights and interests of the Company shareholders
ing investors' rights to be informed about and participate in major matters. It proactively communicates and creditors and other stakeholders.exchanges with shareholders especially minority shareholders through various channels facilitating broad in-
vestor participation and decision-making especially for minority shareholders. It fully listens to the opinions and In 2023 Halo Microelectronics disclosed 4 periodic reports and issued 94 temporary announcements on Shanghai
demands of minority shareholders promptly responds to their concerns and effectively safeguards the lawful Stock Exchange. During the reporting period there were no instances of regulatory criticism condemnation or
rights of shareholders to exercise their rights. punishment for violations of information disclosure. The information disclosure obligations as a listed company
have been effectively fulfilled.Halo Microelectronics has established a sound financial reporting system and information disclosure policy en-
suring timely and fair disclosure of financial information and guaranteeing the truthfulness accuracy complete-
ness clarity and comprehensibility of the disclosed information. The Company hires external auditing institutions
6 100 % annually to provide audit opinions on the effectiveness of its annual financial statements and internal controls
within financial reports.Shareholders' General Meetings the attendance rate of directors
69 70Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Outlook
Outlook
Everything renews as time progresses.Still aiming at becoming an international leading company in the segmented tracks of the analog chip
field Halo Microelectronics will continuously deepen the concept of green development support the
achievement of "dual carbon" goals and solidify the effectiveness of responsible management. It will
still value customer relationship maintenance ensure product quality refine process management
and pay attention to risk control and compliance. Integrity supervision will be strengthened with social
responsibilities shouldered to profoundly empower high-quality enterprise development steadfastly
focus on the R&D of products with high difficulty high value and high technological barriers in its strive
to break through technological bottlenecks and enhance the core competitiveness of domestic chips.Halo Microelectronics is determined to make greater contributions to global technological progress and
industrial development and shine brightly on the world stage for domestic chips.
71 72Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Key Performance Indicators
Appendix Indicator Unit 2023
Newly hired male employees person 65
Newly hired fresh graduate employees person 15
Key Performance Indicators (KPI) Newly hired social recruitment employees person 80
Employees in China (Hong Kong Macao and Taiwan) and foreign
countries person 67
Indicator Unit 2023
Employees in China (the Chinese mainland) person 219
R&D investment RMB million 237
Male person 190
Proportion of R&D investment % 60.32
Female person 96
Proportion of R&D personnel % 64.34
Under 30 person 93
R&D personnel with Ph.D. % 9.24
30-50 person 169
R&D personnel with Master's degree % 32.61
Over 50 person 24
R&D personnel with Bachelor's degree % 53.26
Average paid leaves of employees day 6.24
R&D personnel with college degree % 4.89
Employment contract coverage % 100
Core Technologies item 8
Social insurance coverage % 100
Invention patent grants item 69
Employee critical illness insurance coverage rate % 100
Patents of domestic inventions item 41
Number of employee training time 13
Patents of overseas inventions item 28
Employee training expenditure RMB 10000 22.63
Number of suppliers — 28
Length of employee training hour 38
Suppliers in China (the Chinese mainland) — 16
Employee coverage of training % 67
Suppliers in China (Hong Kong Macao and Taiwan) and foreign
countries — 12 Coverage of physical examinations and medical records % 100
Suppliers reviewed — 12 Investment in occupational injury insurance for employees RMB 10000 52
Suppliers suspended for non-compliance — 0 Coverage rate of occupational injury insurance for employees % 100
Potential suppliers rejected for non-compliance — 0 Participants in occupational disease physical examination person 145
ISO 9000 certified suppliers — 15 Employees participating in safety training person 58
ISO 14000 certified suppliers — 15 Length of workplace safety training hour 8
ISO 45001 certified suppliers — 11 Number of Shareholders' General Meetings time 6
Complaint handling % 100 Attendance rate of directors % 100
Breaches to network and information systems time 0 Number of meetings of the Board of Directors time 13
Business system downtimes time 0 Number of meetings of the Board of Supervisors time 13
Network security incidents and significant anomalies time 0 Meetings of Audit Committee held time 8
Total number of employees person 286 Meetings of Nomination Committee held time 1
Newly hired employees person 95 Meetings of Remuneration and Appraisal Committee held time 3
Newly hired female employees person 30 Meetings of Strategy and Development Committee held time 4
73 74Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Key Performance Indicators
Indicator Unit 2023 Index
Number of directors person 8
Female directors person 2
Contents GRI Standards UN SDGs
Independent directors person 3
Technology Empowerment for Efficiency
Female independent directors person 1 and Reduction in Consumption
Participants of anti-corruption training person 105 Harmonious and Co- Proactive Approach to Green Operations GRI 301 GRI 302，GRI
prosperity to Build a 303，GRI 304，GRI 305， SDG 6，SDG 7，SDG 13，Performance presentations held time 3 Energy Saving and Emission Reduction Land of Hope GRI 306，GRI 307，GRI SDG 14，SDG 15for Efficient Resource Use 308
SSE e-interactions time 14
Moving Towards Green with Low-carbon
Investor calls answered time 49 Office Practices
Investor relations activity summaries released time 16 GRI 204 GRI 308，GRI
R&D Support Quality Prioritized 414 GRI 416 GRI 417 GRI SDG 9，SDG 12 SDG 17
Cumulative number of investors received person-time 511 418
Periodic reports disclosed — 4 Mutual Promotion for
Win-Win Upholding Dedication to Society for Common
SDG 1，SDG 2，SDG 3，
Interim announcements released — 94
the Spirit of Halo Benefit
GRI 413 GRI 415 S D G 4 ， S D G 9 ， S D G
10，SDG 11
Microelectronics
GRI 401，GRI 402，GRI
People-Oriented for Mutual Growth 403，GRI 404，GRI 405， SDG 3，SDG 4，SDG 5，GRI 406，GRI 408，GRI SDG 8，SDG 10，SDG12
409
Checks and Balances for Optimized
Governance GRI 2 SDG 5 SDG 10 SDG 16
Refining Governance
and Upholding Risk Avoidance and Compliance GRI 205，GRI 206 GRI Governance 419 SDG 12 SDG 16Integrity
Vigorous and Resolute Actions in Rights
and Interests Protection GRI 205，GRI 206 SDG 16 SDG 17
75 76Halo Microelectronics 2023 Environmental Social and Governance (ESG) Report Key Performance Indicators
Questionnaire Disclaimer
Dear Stakeholders The information contained in this report does not constitute any investment advice. Investors should not replace
their independent judgment or make decisions solely based on such information. The Company does not assume
Hello! Thank you for reading the 2023 Environmental Social and Governance (ESG) Report of Halo Microelectron- any responsibility for losses that arise or may arise from the use of information in this report. The information
ics Co. Ltd. In order to provide valuable information to you and other stakeholders and to promote continuous published by the Company is true and accurate. In the event of any inconsistency with statutory disclosure docu-
improvement in our environmental social and governance practices we earnestly hope to receive your valuable ments the statutory disclosure documents shall prevail.feedback and suggestions on this report. We look forward to your evaluation. Once again thank you for your sup-
port of our work! If this report contains forward-looking statements it does not constitute a constraint on the Company's future
actions and the Company is not obligated and does not undertake to revise forward-looking statements (if any)
1. What type of stakeholders do you belong to contained in this document.
□ Stockholders and Investors □ Customers □ Employees □ Government and Copyright of images and fonts belongs to the original authors. Please inform us if there is any infringement so that
Regulatory Authorities we can remove it.□ Suppliers and Partners □ Communities □ The Public and Media □ Others
2. Your overall comment on this report:
□ Excellent □ Good □ Average
3. Do you think the ESG performance of Halo Microelectronics is fully presented in this report
□ Yes □ Partially □ No
4. Do you think the information data and indicators disclosed in this report are clear accurate and complete:
□ Yes □ Partially □ No
5. Do you think the content arrangement and graphic design of this report are clear understandable and legible:
□ Yes □ Partially □ No
6. What other information that you are concerned about is not disclosed in this report
7. Any other suggestions regarding Halo Microelectronics' information disclosure and practice of the ESG concept
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