CONTENTS

Innovation-Driven: Leading High-Quality Industry Development

About This Report 02 Innovation-Driven 33

Promote Industry Development 43

Chairman's Message 03 Supply Chain Security 46

About ETEK 05 Safety and Quality of Products and Services 49 Data Security and Privacy Protection 57

Adherence to Sustainable Development Management 15

Appendices 93 Green Transformation: Creating a New Low-Carbon and Eco-Friendly Pattern

Climate Change Tackling 61

Environmental Compliance Management 67

Governance Innovation:Laying a Strong Foundation for Sustainable Development Green Office 69

Corporate Governance 21 Waste and Pollutant Management 71

Compliance Management 25 Energy and Water Resource Usage 73

Honest Operation 28

People-Centered Coexistence: Shaping the Future Together with Employees

Protection of Employee Rights and Interests 77

Career Development and Training 82

Occupational Health and Safety 87

Social Contribution and Rural Revitalization 90About This Report

This Report is the second Environmental Social and Corporate Governance ("ESG") report released by Wuxi ETEK

Microelectronics Co. Ltd. (Stock Code: 688601) aiming to comprehensively present the Company's efforts and

achievements in ESG in 2024 to our stakeholders so that they can better understand the Company's sustainable

development philosophy measures and performance.Basis of Preparation Data Description

This Report follows the Guidelines No. 14 of

The qualitative and quantitative information used

Shanghai Stock Exchange for Self-regulation of

in this Report comes from the Company’s actual

Listed Companies - Sustainability Report (Trial)

operational raw data annual financial data internal

issued by the Shanghai Stock Exchange and refers

relevant statistical reports approval documents from

to the Sustainability Report Preparation Standards

relevant regulatory authorities etc. Specifically the

(GRI Standards) published by the Global Reporting

financial data cited in this Report comes from the

Initiative (GRI) the reporting framework of the Task

financial statements in the 2024 Annual Report

Force on Climate-related Financial Disclosures

which have been independently audited by an

(TCFD) the UN Sustainable Development Goals

accounting firm and received an unqualified audit

(UN SDGs) for 2030 the China’s Corporate Social

opinion. Unless otherwise specified the monetary

Responsibility Reporting Guidelines (CASS-ESG 6.0)

unit in this Report shall be RMB.issued by the Chinese Academy of Social Sciences

and the SJ/T 16000-2016 Guidance on Social Reliability Assurance

Responsibility of Information and Communication

In line with the principles of accuracy comparability

Technology Industry.substance and verifiability this Report objectively

truthfully and completely discloses information

Reporting Period

without any false records misleading statements or

This Report covers the reporting period from significant omissions. This Report has been reviewed

January 1 2024 to December 31 2024 (the and approved by the Board of Directors that is

"Reporting Period") with portions of this Report responsible for the authenticity accuracy and

extending moderately into previous and future years. completeness of the content.This Report is released on an annual basis.Access to the Report

Scope of The Report

This Report is published in both simplified Chinese

The scope of this Report includes Wuxi ETEK and English. In case of any discrepancy between the

Microelectronics Co. Ltd. and its holding companies. two versions the simplified Chinese version shall

Unless otherwise specified the scope of this report is prevail. You can access and download this Report

consistent with the Company's annual report. from the official website of the Company at https://

www.etek.com.cn/ and that of the Shanghai Stock

Notes on Appellations Exchange at http://www.sse.com.cn/.Wuxi ETEK Microelectronics Co. Ltd. is referred to as

the "Company" "we/our/us" or "ETEK" in this Report.

1 22024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Chairman's Message

Dear stakeholders

Time flies and ETEK has once again walked through a year full of challenges and opportunities hand in hand with everyone. Amidst the global wave of transformation and challenges in the

semiconductor industry we have always adhered to the business philosophy of "Based on Honesty Customer First Value Sharing." Thanks to the hard work of all our employees the strong support of

our partners and the care of all sectors of society ETEK demonstrated outstanding resilience and innovative vitality in 2024. Looking back at the past year the Company achieved remarkable results in

areas such as technological breakthroughs market expansion ESG practices and social responsibility laying an even stronger foundation for the sustainable development of the Company in the future.In 2024 ETEK continued to progress steadily in the field of analog integrated circuits adhering to the concept of "Chip Makes Power". Not only did we further solidify our leading position in power

management chips within the consumer electronics market but we also actively expanded into diverse business areas such as home appliances industrial applications automotive electronics and

network communications. Through continuous technological innovation we have injected a steady stream of new energy into industrial development.Uphold integrity and advance normative governance Boost green empowerment and practice social responsibility

Corporate governance is the cornerstone of a company’s steady development and is also the core pillar of ESG As a high-tech enterprise ETEK actively practices the concept of green development deeply integrating

principles. In 2024 ETEK continued to optimize its corporate governance structure and internal control system environmental friendliness with product innovation and is committed to providing energy-saving and

ensuring standardized and transparent operations. The Board of Directors reviewed and approved numerous environmentally friendly chips and solutions to customers. The Company continues to strengthen environmental

proposals throughout the year ensuring transparent and compliant decision-making. We have formulated the management upgrade its green product R&D system and promote the application of the next generation of

Working Rules for the Board of Directors Strategy and ESG Committee incorporating ESG governance into the low-power consumption chips in fields such as new energy vehicles and smart homes working with customers

Company’s development strategy. We attach great importance to the authenticity accuracy and timeliness of to contribute more to reducing carbon emissions. Our "High-Performance Power and Driver IC" project

information disclosure enabling shareholders and investors to gain immediate insight into the Company’s operational successfully concluded not only effectively improving resource utilization efficiency but also demonstrating

status and strategic direction. At the same time we continue to strengthen risk management awareness strictly ETEK’s firm commitment to the path of "green empowerment."

controlling supplier quality and compliance standards and working together with our partners to build a healthy and

Adhere to the people-centered principle and give back to society

transparent business environment.Employees are the "core" engine of a company’s development. In 2024 we continuously improved our

Pursue innovation-driven development and strengthen core momentum occupational health and safety system created a better work environment for employees and further

stimulated the creativity and potential of our R&D team. We actively explore diverse talent development paths.In the rapidly evolving semiconductor field innovation has always been the intrinsic driving force propelling ETEK

Despite the fluctuating industry landscape we have maintained a stable recruitment scale for fresh graduates

forward. In 2024 we adhered to a market-oriented approach continuously increasing our R&D investment. Our

attracting over a hundred professional talents to the semiconductor industry. At the same time the Company

independent innovation capability has steadily improved and we have achieved significant results in new product

actively participates in social welfare continuously focusing on educational equity and social responsibility.development. The Company’s R&D expenses amounted to RMB140 million a 30.63% increase compared to the

Through the "ETEK Award Fund" we help students fulfill their dreams and put our commitment to social

previous year. The Company launched a series of new products with significantly improved performance which

contribution into practice striving to give back to the care and support of all sectors of society.not only enriched the Company’s product line but also injected new momentum into revenue growth significantly

enhancing the Company’s competitiveness in the semiconductor industry. At the same time we actively engaged

in industry-academia-research collaboration deepening partnerships with universities such as

Southeast University and Jiangnan University. We successfully developed low-consumption

power IC contributing to energy efficiency improvements in the industrial automation sector

and promoting industry-wide collaborative innovation.Standing at a new starting point ETEK will continue to adhere to the core philosophy of "Quality First Service As the Foundation" taking higher positions stricter standards and more practical measures Wuxi ETEK Microelectronics Co. Ltd.to continuously deepen our efforts in the field of sustainable development. We will comprehensively integrate ESG principles into the Company’s strategic planning product R&D production operations

and market expansion promoting the deep integration of economic development with environmental protection social responsibility and corporate governance. In doing so we will fulfill our corporate Yuan Minmin

mission in a more open inclusive and socially beneficial manner creating greater value for the industry and society.

3 42024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

About ETEK

Wuxi ETEK Microelectronics Co. Ltd. established in 2002 is a high-tech enterprise focused on the design development and sales of high-performance analog and mixed-signal integrated circuits. The Company is headquartered

in Wuxi Jiangsu. In June 2021 the Company was successfully listed on the SSE STAR Market with the stock code 688601.After more than 20 years of development ETEK has become one of the leading analog integrated circuit design companies in China. Based on its strong position in applications such as mobile phones and wearable devices the

Company has become one of the major suppliers of power management chips in the consumer electronics market and continues to expand into areas such as home appliances the Internet of Things (IoT) automotive electronics

and network communications.

5 62024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Corporate Culture

ETEK has always adhered to the core philosophy of "Quality First Service As the Foundation" and has built a

unique corporate culture system. The Company advocates an innovation culture encouraging employees to break

through conventional thinking and explore cutting-edge technologies. At the same time ETEK values teamwork

with close collaboration between departments to overcome challenges. Under this cultural guidance ETEK

steadily moves toward becoming a global leader in integrated circuit design. Power IC

Core Philosophy

Quality First

Service As the

Foundation

Purpose Spirit Product

Protect IC Signal IC

Quality First Harmony center

Respond Quickly Integrity

Create Value Dedication

Innovation

Management Service Idea

Idea

Customer Based on Honesty

Service Team Customer First

Driver IC Automotive IC

Collaboration Value Sharing

Primary Business

The Company is dedicated to the research and development and sales of analog chips. By providing high- Industry applications

performance and highly reliable power management chips the Company creates excellent power management

solutions for its customers. At the same time the Company is continuously expanding and enhancing its product

line in other categories such as signal chain chips and high-precision Hall chips to meet the diversified market

demands and the needs of customers in various application scenarios. In the area of intelligent networking

delay management units the Company is also actively expanding its sales scale to better serve a wide range of

customers.The Company’s main products are power management chips forming a comprehensive and reliable product

series in the power management field. This includes power conversion chips power protect chips display driver

circuits automotive power management chips as well as intelligent networking delay management units high-

precision Hall chips signal chain chips and other types of chips. These products are widely applied in industries Fields of consumer electronics industrial automotive electronics etc.such as consumer electronics industrial applications automotive electronics and healthcare providing efficient

7 and innovative solutions. 82024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Highlights of 2024

November 2024

Participated in

December 2024

Electronica China

showcasing Won the Best

January 2024 October 2024 ETEK's innovative Employer of the December 2024

Attended the Launched technologies Year at the 2025 Increased the

Wuxi Financial April 2024 a high- and deepening Semiconductor capital of the

Empowerment performance relationships with Investment Annual Obtained the ISO industrial fund by

for Enterprise general-purpose 26262 Functional customers and Conference RMB50 million April 2024

Innovation and operational Safety Management distributors raising ETEK's

Development Launched ET4557 amplifier applied System ASILD June 2024 stake to 99.33%

Conference Certificate from a level shifter for

in automotive

SIM card interface Invested in and drones and TüV Rheinland May 2024

and received established an power toolsGroup

Qualcomm Established the industrial fund –

certification wholly-owned Liding Fund with

subsidiary ETEK a fund size of

May 2024

(Shanghai) Co. RMB100 million

Ltd. Won the of which ETEK

Outstanding holds a 99.00%

Employer of Wuxi stake

High-tech Zone

Private Enterprise

9 102024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Industrial Layout

ETEK currently operates eight subsidiaries. Of these seven domestic subsidiaries located in Wuxi Wenling Shenzhen Shanghai and other cities are in charge of the crucial R&D and sales tasks while one South Korea

subsidiary is actively developing the South Korean market to enhance the Company's competitiveness in the region. The Company actively promotes its global business strategy further expanding into international markets.It has established a presence in Europe Japan and South Korea exploring new market opportunities and deeply engaging in the global integrated circuit market competition firmly advancing toward a broad international

development platform.

11 122024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Annual Achievements and Honors Recognitions and Honors

2024 Sustainability Highlights

Economic Performance

Operating revenue 78749.33 RMB’0000 Total assets 145748.26 RMB’0000

Net profit attributable 12585.74 RMB’0000 Weighted average return to the listed company 9.87 % Entrepreneurial Leader of the Specialized Refined Featured and Specialized Refined Featured and on net assets National Science and Technology Innovative "Little Giant" Company Innovative Small and Medium-sized

Talent Program Enterprise in Jiangsu Province

Basic earnings per share0.94 RMB

Environmental Performance

Ton of

Total water intake volume 4160Ton Total energy consumption260.99 standard coal

Total electricity consumption173.46kWh Total GHG emissions1137.72 tCO2e

Advanced Technology Service High-tech Enterprise of Jiangsu

Enterprise of Jiangsu Province Outstanding EmployerProvince

Social Performance

R&D investment14055.93RMB’0000 Number of employees trained 578Persons

Proportion of R&D personnel 56.45% Employee training hours7523.70Hours

Total number of intellectual Social insurance coverage rate 100 %

property rights 191 Cases

Governance Performance

Total number of the Board of

Directors' meetings held 8 Times Investor research receptions 4 Times

Number of proposals approved by 73 Major rule or law violations 0 Cases Outstanding Innovation Capability SPDT4 Shipments Exceeding Items RMB100 Million Best Employer of the Year

the "Three Meetings"

Documents disclosed in compliance 62

Note: The original "General Meeting of Shareholders" is now referred to as the "Shareholders' Meeting."

13 142024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Adherence to Sustainable Key Stakeholders Key Topics Communication Methods/Channels

Development Management

Risk and compliance management

Honest operation

Anti-commercial bribery and anti-

ESG Management corruption Inspection by regulatory authorities

Business Ethics

ETEK regards ESG management as a core strategy for its development and systematically integrates ESG Government research activitiesSafety and quality of products and

Information disclosure platforms

principles into the overall strategic planning and operational management system. The Company has established Government servicesClimate change tackling

an ESG governance structure with a three-level management system comprising the "Board of Directors - and regulatory Environmental compliance

Strategy and ESG Committee - Strategy and ESG Working Group" to ensure the effective implementation and authorities management

Pollutant and Waste Management

continuous optimization of the ESG strategy. By establishing and improving ESG management systems optimizing

information disclosure mechanisms and strengthening risk management frameworks the Company continually

enhances the scientific and standardized nature of its ESG governance. These initiatives not only demonstrate

the Company’s firm commitment to sustainable development but also provide strong support for long-term Innovation-driven Shareholders' MeetingRisk and compliance management

value creation driving high-quality development through the coordinated integration of economic social and Results briefingsCorporate governance Exchange interaction

Economic performance

environmental benefits. Shareholders and Investor exchangesInformation disclosure

investors Information disclosure platforms

Board of Decision-making level. Coordinating the ESG governance work;

Directors Formulating the Company’s ESG strategy and objectives and approving the ESG work plan.Data security and privacy protection

Safety and quality of products and Customer satisfaction surveys

services After-sales services and complaints

Supply chain security Customer exchanges

Management level. Researching the Company’s ESG goals and strategic plans and providing

Customers Anti-commercial bribery and anti- Product exhibitions and sales

Strategy recommendations; corruption Whistleblowing and supervision channels

and ESG Business ethics

Committee Reviewing and submitting the Company’s ESG work plan to the Board of Directors;

Reviewing other major ESG-related matters.Protection of employee rights and

Execut ion leve l composed o f re levant personne l f rom the Company ' s func t iona l Internal management meetingsinterests

Strategy Communication meetings at all levels

and ESG departments. Implementing the ESG decisions made by the management level;

Occupational health and safety

Working Employees

Career development and training

Group Collecting and consolidating ESG data and providing the information needed for decision-

making.Innovation-driven

Open and transparent procurement

Information security and customer

Due Diligence and Communications with Stakeholders Industry seminars and exchangesprivacy protection

Supplier meetings

Supply chain security

Whistleblowing and supervision channels

Suppliers Promote industry development

Stakeholder expectations and demands are the key driving forces and sources that propel a company to

continuously improve its sustainability performance. We place high importance on stakeholder feedback and

use it as a crucial basis for optimizing ESG efforts. In 2024 we further improved the information feedback

mechanism and deepened dialogue and collaboration with key stakeholders including government and regulatory Waste management

Environmental information disclosure

authorities customers shareholders and investors employees suppliers and others. By systematically identifying Environmental compliance Active participation in volunteer

management

and managing the core issues of concern to stakeholders we actively respond to their demands continuously Communities and activitiesSocial contribution and rural

Community research

improving the ESG management system and promoting a virtuous cycle of sustainable development and value co- the public revitalization WeChat official account

Climate change tackling

creation with stakeholders.

15 162024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Management of Material Matrix of ESG Material Topics of ETEK in 2024

Very important

ETEK focuses on interpreting international and domestic ESG standards and government laws and regulations Corporate governance

every year identifying key topics of concern for leading companies in the industry and combining its own Due diligence and communications with stakeholders Climate change tackling

development strategies and ESG practices to determine material topics that are material to the Company and Compliance management Innovation-driven

Risk management

stakeholders. We develop management goals and strategies for key topics provide detailed responses in the Supply chain security

Protection of employee rights and interests

Report and continuously promote the sustainable development of the Company. Safety and quality of products and services

Occupational health and safety Data security and customer privacy protection

Career development and training

01 ·A ctivities and business relations: Analyze the Company’s core business strategic Ethics of science and technology

Learn about plans major products and their distribution business relations etc.Anti-unfair competition

the company ·A nalyze the external objective environment: Learn about the laws regulations

Environmental compliance management

profile and external documents related to ETEK in order to fully comprehend its external

environment. Waste and pollutant management

Energy and water resource usage Anti-commercial bribery and anti-corruption

·A nalyze major affected stakeholders: Learn about the current stakeholder Green office

engagement methods and the impacts risks and opportunities the Company Circular economy

faces. Social contribution and rural revitalization

Promote industry development

02 Not important Importance to the Company's finance Very important

·I dentify additional topics that are financially significant or impactful to improve

Create a list the topic list based on the 21 topics set in the Guidelines and in combination Topics of impact Topics neither of financial Topics of dual Topics of financial

with ETEK-related national policies and industry characteristics as well as

of topics importance but not importance nor of impact importance importance but not

stakeholder feedback and benchmarking with peers. financial importance importance impact importance

Climate change tackling Waste and pollutant management Environmental compliance

03 management Energy and water resource usage Circular economy Green office

Assess and ·A ssess the dual importance of each topic and determine the priority of topics

determine the based on the industry and business characteristics of ETEK as well as the results

importance of the questionnaire survey and assessment from sustainability experts. Innovation-driven Supply chain security ethics of science and technology Safety and quality

of topics of products and services data security and customer privacy protection Promote industry

development Protection of employee rights and interests Career development and training

Occupational health and safety Social contribution and rural revitalization

04

Disclose ·C reate an importance analysis matrix that shows the topics' level of importance

information based on the topic assessment results and disclose topics deemed highly Corporate governance Stakeholder communication Anti-commercial bribery and anti-

on the important in detail in the Report. corruption Anti-unfair competition Risk management Compliance management

materiality of

topics Note: Ecosystems and Biodiversity Conservation is subject to subject-specific disclosure and is not covered by the Company for now.The topic "Equal Treatment to Small and Medium-sized Enterprises" applies to entities with accounts payable (including notes payable)

exceeding RMB30 billion or accounting for more than 50% of total assets by the end of the reporting period or those that have

disclosed overdue payments to small and medium-sized enterprises via the National Enterprise Credit Information Publicity System.ETEK does not apply this topic and has not included it as an ESG topic.

1718

Environment Society Governance

Importance to the economy society and environmentGovernance Innovation:

Laying a Strong Foundation

for Sustainable Development

ETEK places great importance on corporate governance. A standardized and effective

corporate governance system is essential for achieving steady business operations and is

the basic premise for comprehensively preventing compliance risks. We strictly comply with

the laws regulations and regulatory requirements related to operational standards set by

the China Securities Regulatory Commission and the Shanghai Stock Exchange. We adhere

to business ethics practice standardized operations maintain a positive corporate image

and share the results of the company?s development and operations with our shareholders.ESG topics addressed:

Corporate Governance

Compliance Management

Anti-commercial Bribery and Anti-corruption

Anti-unfair Competition

UNSDGs:

DECENT WORK PEACE JUSTICE

8 AND ECONOMIC 16 AND STRONGGROWTH INSTITUTIONS

Promote sustained inclusive and Promote peaceful and

sustainable economic growth inclusive societies for

full and productive employment sustainable development

provide access to justice

and decent work for all

for all and build effective

accountable and inclusive

institutions at all levels2024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.Corporate Governance General Manager

The General Manager is responsible for the Company’s routine operation and management implementing the

Governance structure strategies and plans set by the Board of Directors and ensuring the Company operates in an orderly manner.ETEK strictly complies with the requirements of laws regulations and normative documents such as the

Company Law of the People's Republic of China the Securities Law of the People's Republic of China the Code

of Corporate Governance for Listed Companies and the Rules Governing the Listing of Stocks on the STAR

Market of Shanghai Stock Exchange. The Company has established a series of policies and normative documents Convening of the Three Meetings in 2024

including the Articles of Association Rules of Procedure for Shareholders' Meeting Rules of Procedure for Board

of Directors' Meeting Rules of Procedure for Board of Supervisors' Meeting and Work Guidelines for Independent

Directors to clearly define the operational standards for the "Three Meetings." The governance structure is based

on a clear division of responsibilities and standard operations composed of the Shareholders' Meeting Board of

Supervisors Board of Directors and its committees and the General Manager.Shareholders' Board of Directors' Attendance of members at Board of Supervisors' Number of proposals

approved at the above

Meeting Meeting Board of Directors' meetings Meeting meetings

Shareholders' Meeting Strategy and ESG Committee 2times 8times 100% 8times 73

Bo监ar事d o会f Supervisors

Audit Committee

Board of Directors

Nomination Committee Convening of Committee Meeting in 2024

General Manager Remuneration and Appraisal Committee

Strategy and ESG Audit Committee's Nomination Committee's Remuneration and Appraisal

Shareholders' Meeting Committee's Meeting Meeting Meeting Committee's Meeting

Shareholders' Meeting is the highest body of the Company. The Company convenes and holds the Shareholders' 2times 5times 1time 2times

Meeting in strict accordance with the Articles of Association and the Rules of Procedure for Shareholders'

Meeting to ensure the shareholders' right to know and participate.Board of Directors Diversity of the Board of Directors

The Board of Directors is the decision-making body for the Company’s operations and management and is We strive to promote diversity in the Board of Directors in terms of gender culture professional skills and other

accountable to the Shareholders' Meeting. aspects. The Board of Directors consists of nine directors with three independent directors accounting for

33.33% and two female directors accounting for 22.22%. The current members of the Board of Directors possess

The Board of Directors has four specialized committees: the Strategy and ESG Committee the Audit Committee professional expertise in various fields such as chip design corporate management investment and financing

the Remuneration and Appraisal Committee and the Nomination Committee. These committees provide management financial management and law which helps the Board of Directors make informed risk decisions

consultation and advice for important decisions of the Board of Directors ensuring the professionalism and and enhance overall governance capability.efficiency of Board of Directors' procedure and decision-making.Board of Supervisors

The Board of Supervisors as the permanent supervisory body of the Company supervises the performance of

duties of directors and senior managers in accordance with law and reviews the securities issuance documents

and periodic reports produced by the Board of Directors and issues written review comments.

21 222024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Member structure Unit Data of 2024 Risk management

Members of the Board of Directors / 9

ETEK complies with relevant laws and regulations and has established risk management control procedures

By independent director Number 3

such as the Response and Control Procedures for Risks and Opportunities the Identification and Assessment

Doctor Number 2 Procedures for Environmental Factors and the Emergency Preparedness and Response Procedures. The Company

Master Number 4 continuously optimizes its risk management system strengthens emergency management for unforeseen events By educational background

ensures the early identification and control of potential risks minimizes negative impacts and promotes the

Bachelor Number 3

Composition Company’s sustainable healthy and stable development.of the Board Male directors Number 7 The Company has established a comprehensive risk assessment system and a systematic risk management

By gender

of Directors Female directors Number 2 mechanism to continuously monitor macroeconomic policy risks operational risks financial risks market risks

legal risks and ethical risks. The Company promptly identifies and assesses various risks it faces and takes

Aged under 40 Number 1 necessary control measures.Aged 40 to 49 Number 3

By age Management representatives

Aged 50 to 59 Number 2

* Providing the necessary resources for risk management including personnel qualifications

Aged over 60 Number 3 necessary training and information acquisition

*Determining acceptable risk standards and policies and regularly reviewing and updating risk and

Investor relations opportunity management

ETEK places great importance on communication with investors. To strengthen the information communication

with investors and effectively protect the legitimate rights and interests of investors especially public investors

and to establish a long-term stable and harmonious interactive relationship between the Company and its Risk and opportunity assessment groups

investors the Company has formulated the Management Policy for Investor Relations in accordance with the *Organizing and implementing risk and opportunity analysis and assessment

Company Law of the People's Republic of China the Securities Law of the People's Republic of China the

*Developing risk and opportunity response measures and implementing them

Work Guidelines for the Investor Relations Management of Listed Companies and other laws regulations and

normative documents as well as the provisions of the Articles of Association. *Developing risk management plans

The Board Secretary is responsible for organizing and coordinating investor relations management work and *Organizing the implementation of risk response measures and verifying their effectiveness

the Securities Department is the dedicated department for managing investor relations handling related matters

regarding investor relations.Quality Management Department

The Company has established a registration system for reception activities which records in detail the research

communication interview promotion and advertising activities of the recipients or invitees. After the reception *Establishing response and control procedures for risks and opportunities and maintaining them

activities are completed a Record Form of Investor Relations Activities is compiled and regularly published on *Organizing and implementing risk and opportunity reviews at least once a year following up on the

the SSE e-interactive website. The Company has established multiple investor interaction channels such as completion and effectiveness of various measures and preparing the Report on Assessment and Analysis of

phone email and on-site reception and regularly publishes its website consultation phone number and investor Risks and Opportunities

relations email address in its periodic reports.*Conducting risk assessment and risk response planning within the department and implementing and

supervising various risk response measures

Investor Interactions of ETEK in 2024

Departments

*Assessing the risks and opportunities of quality and environment in the department developing corresponding

measures to avoid or reduce risks and implementing them item by item

Interactions on SSE Investor

Results briefings Investor calls answered Investor exchanges

e-interactive website communications

Sales Department

Approximately

3times 38times 130 3times 90 times * Collecting risk information on product after-sales conducting risk identification work within the department times formulating corresponding measures to avoid or reduce risks and implementing them item by item

23 242024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Risk Management Procedures In addition to internal audit management the Company also engages an external independent third-party auditor

to issue an external assurance report on the financial and internal controls for the Reporting Period. For the 2024

Each responsible department establishes risk identification methods for production management annual report an independent auditor with securities qualifications issued an unqualified internal control audit

equipment after-sales and other aspects records and classifies potential risks assesses their severity

Risk identification report and a standard unqualified financial audit report. These were approved and reported by the Board of and frequency of occurrence calculates risk coefficients and records them in the Table of Assessment

and Analysis of Risks and Opportunities. These are regularly reviewed and updated to comprehensively Directors on April 11 2025.identify risks and provide a basis for risk response.According to established guidelines the severity and frequency of identified risks are assessed and

Risk Assessment based on the assessment risk coefficients are determined which then guide the selection of risk

Internal control compliance

response measures.To improve the Company’s risk management level and protect the legitimate rights and interests of investors

ETEK has developed the Internal Control Policy based on the Company Law of the People’s Republic of China

Implementing departments are required to assess the identified risks and based on the results of the Securities Law of the People’s Republic of China the Notice on Strengthening Internal Control Construction

Risk response the assessment respond through risk acceptance mitigation avoidance etc. in order to reduce or of Listed Companies and Enterprises to be Listed to Promote Internal Control Evaluation and Audit and other

eliminate the risks.relevant laws and regulations. This policy also incorporates the requirements of the Basic Standard for Enterprise

Internal Control to enhance internal control management ensure the effectiveness of internal controls and

Supervision and Risk identification and assessment activities aim to identify risks and comprehensively consider promote standardized operations.improvement of effective response measures. When the risk coefficient is too high avoidance or reduction measures

risk management are taken to minimize harm and loss. The Company has established and improved an internal organizational structure that meets the requirements of

modern enterprise management forming a scientific decision-making mechanism implementation mechanism

and supervision mechanism.Review of risk

The Quality Management Department organizes periodic reviews of risks and opportunities to verify

management

their effectiveness.Organizational Structure for Internal Control

The Board of Directors is fully responsible for the formulation implementation and improvement of the

Board of Company’s internal control policy and regularly conducts comprehensive inspections and effectiveness assessment of the Company’s internal control.Directors The Board of Directors has established the Audit Committee which guides the construction and effective

Compliance Management operation of the Company’s internal control system according to its responsibilities.The Board of Supervisors is fully responsible for supervising the implementation of the Company’s internal

Audit compliance Board of control policy. In case of any identified internal control deficiencies the Board of Supervisors may order

Supervisors corrective actions and report to the Shareholders' Meeting on the implementation of the internal control

policy.To standardize internal audit work improve the quality of internal auditing and protect shareholders' legal rights

ETEK complies with the Audit Law of the People's Republic of China the Regulations on Internal Auditing Work by

the National Audit Administration the Code of Corporate Governance for Listed Companies and the Guidelines

No. 1 of Shanghai Stock Exchange for Self-Regulation of Listed Companies - Standardized Operation as well The Management is responsible for establishing and improving the internal control policy within the

Management operational processes promoting the comprehensive implementation of the internal control policy and

as other relevant laws regulations and normative documents. The Company has formulated the Internal Audit

checking how each department and unit formulates and implements specific internal control policies.Policy to evaluate and supervise the effectiveness of internal controls and risk management the authenticity and

completeness of financial information and the efficiency and effectiveness of business activities.The Board of Directors of the Company has established the Audit Committee which guides the construction and

effective operation of the Company’s internal control system and is responsible for overseeing the Company’s

financial statement disclosures and internal control processes. At the same time the Company has established

the Audit Department which inspects and supervises the authenticity and completeness of the Company’s

financial information and the establishment and implementation of internal control policy. The Audit Department

as the internal audit department of the Company is accountable to the Audit Committee and reports to it. The

Audit Department issued the Internal Control Evaluation Report for 2024 on the Company’s internal control

management during the Reporting Period confirming that there are no significant defects in the internal controls

over financial reporting.

25 262024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Compliance Review Process Before Information Disclosure

Tax compliance

01

The Company’s Finance Department is responsible for the Company’s tax management including the The department head providing information carefully verifies the relevant information

establishment of the tax management system tax risk assessment maintenance of tax credit rating tax training

tax archive management tax team development routine tax approval and participation in investment and

operational decisions among other tax-related matters.The Finance Department conducts tax control and pre-risk management through financial inspections special tax 02

inspections and daily reporting reviews. Additionally the Finance Department ensures close communication with The Board Secretary conducts a compliance review

the tax authorities to guarantee timely and accurate tax filings and compliance with tax laws.The Company’s current tax assessment received an A rating. During the Reporting Period the Company paid a

total of RMB22310100 in taxes.

03

The Chairman signs and issues the approval

Information disclosure compliance

To standardize the Company’s information disclosure practices ensure that the information disclosed is truthful

accurate and complete and protect the legitimate rights and interests of investors ETEK has established the In 2024 the Company disclosed 63 announcements and reports with no incidents of penalties due to non-

Management System for Information Disclosure in accordance with the Company Law of the People’s Republic of compliance with information disclosure. The Company received a B rating in the annual information disclosure

China the Securities Law of the People’s Republic of China the Management Measures for Information Disclosure evaluation by the Shanghai Stock Exchange.by Listed Companies the Code of Corporate Governance for Listed Companies the Rules Governing the Listing

of Stocks on the STAR Market of Shanghai Stock Exchange the Guidelines No. 1 of Shanghai Stock Exchange for

Self-Regulation of Listed Companies - Standardized Operation as well as other relevant laws regulations and

normative documents and the provisions of the Articles of Association. Honest Operation

The Company’s information disclosure work is uniformly led and managed by the Board of Directors with the

Board Secretary responsible to the Board of Directors for organizing and coordinating the Company’s information

disclosure affairs. The Company actively monitors media coverage and proactively verifies the accuracy of Anti-commercial bribery and anti-corruption

reported information.Governance

Information Disclosure ETEK is fully aware of the harm caused by illegal business practices such as commercial bribery which not

only damages the Company's economic interests but also undermines its reputation for honest operations. The

Company complies with the Interim Regulations on the Prohibition of Commercial Bribery and other relevant

laws and regulations. It has established the Management System for Anti-Commercial Bribery and requires key

Board of Directors Board Secretary Securities Department personnel to sign integrity and honesty commitment agreements. Personnel in important positions as well as

entities or individuals they conduct business with sign the Anti-Commercial Bribery Commitment Letter with the

Leading and managing the As the primary responsible As the daily operational department Company to strictly monitor and prevent commercial bribery thereby regulating employees' business conduct.information disclosure work with person for information disclosure for information disclosure assisting The Company’s Comprehensive Department as the supervisory department is responsible for coordinating and

the Chairman being the primary organizing and coordinating the the Board Secretary in handling executing anti-commercial bribery and anti-corruption work.responsible person for information Company’s information disclosure information disclosure matters.disclosure. affairs.

27 282024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Strategy

ETEK builds a "zero tolerance" integrity culture strategically actively formulating and implementing a series of

key measures to ensure that business activities comply with laws regulations and international anti-corruption Risk Monitoring

standards. The Company has set up a commercial bribery prevention reporting box implements the Anti- Risk Response

Commercial Bribery Commitment Letter and promotes the initiative through posters in office areas. The Company Risk Assessment

ensures open and accessible anti-corruption reporting channels ensuring that corruption and bribery incidents Risk Identification The Company has

For verified corruption

are dealt with fairly effectively and promptly. At the same time we have implemented a reporting incentive and Upon receiving improved its employee

protection mechanism such as anonymous reporting and confidentiality of the reporter's information to enhance Employees’ issues such complaints the Company corruption-related complaint and

employee participation and initiative. This encourages employees suppliers and other partners to engage in the as bribery violations takes strict action reporting management complaints the

Company’s anti-corruption supervision efforts. of discipline and law against the involved and supervision Company immediately

etc. are included employees based mechanisms including conducts a preliminary

in the categories of on laws regulations anti-corruption reports analysis to assess

Supervision Measures for Anti-Commercial Bribery complaints enabling and internal policies in the supervisory the authenticity and including disciplinary

01 accurate identification scope monitoring reliability of the actions contract the acceptance

Set up a commercial bribery prevention reporting box and publish the reporting phone number. of internal corruption information and

risk points including termination or referral investigation and preliminarily determines

misconduct in to judicial authorities handling of complaints whether corruption

02 employees' work. to punish and recover to ensure compliance

The Company’s supervisory department regularly arranges for managers and key personnel to risks exist. losses. with laws and

conduct integrity and honesty self-inspections retaining records. For individuals with issues regulations.identified in self-inspections corrective action plans are created and records are retained.力芯微M20e2t4ri年cs投 a资n者d互 ta动r统gets

03

Conduct random interviews with middle and senior management involved in the

The Company sets clear anti-corruption indicators and objectives to measure and promote the effectiveness of

Company’s business with suppliers to inquire whether they are aware of the anti-corruption efforts. In daily operations the Company continuously strengthens education on anti-corruption

Company’s Anti-Commercial Bribery Commitment Letter with suppliers. and anti-commercial bribery laws and regulations periodically trains employees on anti-corruption matters

and handles complaints and reports promptly to prevent corruption incidents. During the Reporting Period the

Company did not experience any corruption incidents.Reporting Channels for Anti-Commercial Bribery Anti-unfair competition

Complaint phone Email ETEK always adheres to the principle of fair competition in the market and firmly opposes any form of unfair

0510-85217779 maocl@etek.com.cn competition. The Company strictly complies with the Law of the People’s Republic of China Against Unfair

Competition the Interim Regulations on the Prohibition of Commercial Bribery and other relevant laws and

regulations. It requires all employees to adhere to business ethics in market competition uphold honest operation

and ensure that product information is truthful accurate and complete in interactions with competitors

customers and suppliers. The Company resolutely opposes any behavior that could harm the fair market

competition order or consumers' legitimate rights and interests.Management of impact risk and opportunity

ETEK has established a risk management process for anti-commercial bribery and anti-corruption. Identified

potential risks and opportunities are assessed and classified and response measures are formulated based on the

analysis to enhance the Company’s risk resilience.

29 30Innovation-Driven:

Leading High-Quality

Industry Development

ETEK has always regarded research and development innovation as the cornerstone of its

corporate growth and systematically promotes independent R&D projects. The Company

attracts and introduces outstanding talent through the establishment of effective incentive

mechanisms continuously stimulating the vitality of technological innovation. At the same

time we strictly control product quality strengthen the management of the sustainable

supply chain and continuously improve the customer service system. With concrete actions

we convey our firm commitment to creating value for society to all stakeholders and actively

promote the continuous progress of China?s semiconductor industry.Material topics addressed:

Innovation-driven

Promote Industry Development

Protection of Intellectual Property Rights

Safety and Quality of Products and Services

Data Security and Privacy Protection

Supply Chain Security

Ethics of Science and Technology

UNSDGs:

INDUSTRY SUSTAINABLE PARTNERSHIPS

9 INNOVATION AND 12 CONSUMPTION 17 FOR THE GOALSINFRASTRUCTURE AND Strengthen the meansPRODUCTION of implementation and

Build resilient infrastructure revitalize the Global

promote inclusive and sustainable Ensure sustainable Partnership for Sustainable

industrialization and foster consumption and Development

innovation production patterns2024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.Innovation-Driven Strengthening of R&D capabilities

The semiconductor industry is a typical technology-intensive and talent-intensive sector where a highly skilled

and technically strong R&D team is the soft power guarantee for the Company's continued innovation capacity.Governance The Company actively responds to national incentive policies and has developed the Policy for Organization

Implementation and Incentive for Technology Achievement Transformation. It has implemented a reward

mechanism for R&D achievements to ensure the legal rights and interests of the achievers and all parties involved

ETEK fully understands that R&D innovation is the fundamental driving force for the sustainable development

in the enterprise. At the same time the Company actively conducts relevant R&D technical training to ensure the

of the Company and the enhancement of core competitiveness. To this end the Company has formulated

continued innovation capacity of the Company.comprehensive innovation policies including the Guidance on the Development Process for Chip Projects and

the Policy for Organization Implementation and Incentive for Technology Achievement Transformation providing

strong institutional support for technological breakthroughs and product upgrades while also inspiring the

creative energy of all R&D personnel. Transformation of technology achievements

Led by the R&D Center with cooperation from other departments the transformation process is approved and

Development of R&D system supervised by the Board of Directors and the Finance Department. The Company has established an innovation

and entrepreneurship platform to provide resource support to R&D personnel or project teams allowing them to

The Company has established a complete R&D organizational system with the chip development team as the independently or collaboratively carry out technology achievement transformation.core driving force. The team is composed of personnel from the Marketing Department Quality Management

Department Design Institute and Operations Department. These departments work collaboratively to steadily

push forward the R&D efforts. Incentives and rewards

The Company encourages R&D personnel’s initiative and creativity through a clear benefit-sharing system

Product Preparing the **Chip Project Charter Material proposing the project conducting preliminary (considering funding sources contribution ratios etc.) and methods such as patent/design layout subsidies.manager research and submitting the materials for project evaluation. The benefits from R&D achievements are independent of basic salaries and performance bonuses promoting

continuous innovation.Drafting and compiling the project plan requirements list and TR nodes (technical review

Project The total number of R&D points) report; the primary person responsible for project development planning and scheduling

manager The Company continues to personnel is

management; concurrently held by the System Engineer. 293R&D personnel expand its high-quality R&D

team based on actual needs an increase of 56 compared to

the previous year

Quality Developing and executing circuit quality inspection plans and verification plans as well as

engineer conducting project quality control.Proportion of R&D The proportion of R&D

R&D personnel now account

for % of the total an

personnel to total personnel has steadily

56.45

increase of 4.25% compared to

employees (%) increased the previous year

System Conducting circuit design including architecture planning solution development new IP

engineer organization Tapeout (delivery to manufacturing) and designing report compilation.Strategy

Other Coordinating and collaborating on specific aspects of the project providing continuous technical

engineers ETEK is committed to implementing an innovation-driven development strategy. By accurately support.identifying potential risks and opportunities in the R&D process the Company strives to explore key

breakthroughs that will enable stable sustainable and rapid growth.

33 342024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Risk Type Description Potential Financial Countermeasures

Impact Management of impact risk and opportunity

ETEK primarily adopts an independent R&D model continuously optimizing various safeguards to

If technological breakthroughs or Through the Guidance on the

address the risks and opportunities in R&D innovation. This improves the Company’s risk prevention

product upgrades are not achieved Decrease in Development Process for Chip Projects

in time the Company may lose operating the Company clarifies the R&D goals ability and strengthens its independent R&D capabilities and core competitive advantages.Risk of R&D its competitive edge in the fast- revenue for each stage encourages continuous

delay evolving semiconductor market. innovation and accelerates the project

development process. Risk Identification Risk Assessment

Lack of a well-established In the project initiation and preliminary research The Board of Directors Finance Department and

system for the transformation

The Board of Directors and the Finance stages risks such as R&D quality and intellectual other relevant departments approve and supervise

of technological achievements Increase in Department approve and supervise the property are systematically identified combining risks. The review mechanism clarifies the likelihood

and incentive mechanisms may operating costs transformation process stimulating the the Guidance on the Development Process for Chip of risks the scope of their impact and the

Risk of result in difficulties in effectively motivation of R&D personnel through a

transformation Projects and departmental experience. potential losses determining the risk level.implementing innovative results

failure clear benefit-sharing system.impacting the Company’s

competitiveness.Risk Response Risk Monitoring

The Company strengthens patent

Failure to apply for patents for applications and training and builds a Project managers quality engineers and other Identified risks are dynamically monitored and

R&D results in a timely manner or Increase in sound intellectual property management related personnel develop and implement quality through improving the technology achievement

infringement by others could lead operating costs system through the Enterprise Intellectual inspection and verification plans for potential transformation and incentive reward systems the

Intellectual to the loss of technology or legal Property Management Manual and the issues. The Intellectual Property Department Company adjusts R&D directions or reallocates

property risk

disputes. Compilation of Documents on Intellectual strengthens prevention through patent applications resources in a timely manner to ensure that

Property Procedures. and training. The R&D Center leads technical project goals align with the Company’s overall

breakthroughs and resource allocation. development strategy.Opportunity Description Potential Financial Countermeasures

Type Impact

Rapid changes in demand in

application areas such as mobile Increase in

The Company quickly follows up on

operating market technology needs and enhances platforms and motor control allow

the speed of R&D through a well-

Opportunity new products to quickly enter the revenue

of market established project development process.upgrade high-end market.The transformation of technology The Company has established an

achievements helps industrial Increase in innovation and entrepreneurship

upgrading and the flexible revenue operating platform ensuring benefit distribution

Opportunity distribution mechanism can revenue and providing resource support to R&D

of technology

achievement stimulate greater innovation vitality. personnel or project teams.transformation

35 362024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

ETEK launched the level shifter ET4557 for SIM card interfaces effectively solving the

Case

communication adaptation problem between the baseband processor and SIM card To effectively prevent ice flood disasters starting from March 29 2024 artificial ice-breaking

operations were conducted on an ice-prone river section in Huma County Daxing'anling Prefecture

Heilongjiang Province with a total blasting length of 11100 meters. For this ice-blasting operation a

With the rapid development of mobile platforms new process nodes have reduced the voltage of detonator from a civil explosive company in Heilongjiang was used along with the electronic control

mobile baseband processors. The voltage of mainstream flagship platforms has dropped from 1.8V to module and detonating system from Wuxi Semiconductor Technology Co. Ltd. providing key support

1.2V while SIM cards primarily use 3.0V (B type) or 1.8V (C type) logic level interfaces. ETEK launched for the work.

the level shifter ET4557 for SIM card to enable communication between the host platform and SIM

card. The chip successfully entered Qualcomm’s high-end platform reference design and received the

highest recommendation level (GOLD).The ET4557 features a dual-power design: the host processor side operates between 1.08V and 1.98V

while the SIM card side operates between 1.62V and 3.6V. It includes three level shifters to convert

the I/O RST and CLK signals of the SIM card enabling proper communication with the main chip.Semiconductor's Electronic Control Module and Detonating System Assisted in Ice-

blasting to Prevent Flooding in Heilongjiang

High-performance operational amplifier -- ETEK launched a high-performance general-purpose

Case

operational amplifier ensuring a stable circuit environment

As modern intelligent vehicles extensively use DC motors in their bodies precise current sampling

is required to ensure the motors operate correctly. Similarly applications such as drones and power

tools require current-sensing circuits to control the motors.ET4557 Achieves the Highest Recommendation Level on Qualcomm's Platform

ETEK launched the high-performance general-purpose amplifier ET85602. ET85602 is a dual-channel

low-voltage (1.8V to 5.5V) operational amplifier with rail-to-rail input and output swing capabilities.With a bandwidth of 10 MHz it can be used for motor and power system current sampling as well as

sensor signal conditioning. ET85602 supports high capacitive load driving and even with a capacitive

load of 100pF it can operate stably.Semiconductor's "Electronic Control Module and Detonating System" assisted in ice-blasting to

Case

prevent flooding in Heilongjiang

As a well-known domestic manufacturer of civil explosives the subsidiary Semiconductor primarily

produces electronic control modules encoders and blasting controllers. These products are used

in specialized sectors such as tunnel excavation building demolition mining blasting weather

modification geological exploration petroleum extraction and firefighting. They are known for their

high reliability precision and safety. The products have made breakthroughs in technologies such as

ultra-long delay settings long-distance communication leakage resistance and resistance to extreme

temperatures giving them strong competitiveness in the market.ET85602 Operational Amplifier

37 382024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

ETEK launched an OVP chip with built-in 200V surge protection and high current handling

Case

capability Protection of intellectual property rights

The ET9668 is an OVP chip with a built-in 9mΩ power switching transistor supporting a maximum "Technological Innovation as the Primary Productive Force" is ETEK's intellectual property policy.operating voltage of 28 V. Its built-in over voltage protection shutdown module ensures a shutdown In order to further consol idate the advantages of technological innovation the Company has

response time of less than 50ns with typical performance around 10ns. This response speed cannot actively constructed and continuously optimized the intellectual property management system and

be matched by the "OVP control chip + external FET" solution. Additionally the chip includes a 200 has obtained the intellectual property management system certification and intellectual property

V surge protection module which helps minimize the number of components in the product’s power compliance management system certification. Meanwhile the Company has continued to establish

interface protection circuit reducing design complexity. sound intellectual property management policies. By leveraging measures such as patent applications

and technology protection the Company not only safeguards the originality and value of our own

The product has passed the full suite of customer tests and has started mass production providing technological achievements but also lays a solid intellectual property foundation for the Company's

strong support for the customer’s flagship AI smartphones. sustained technological innovation and development.The Company has formulated the Enterprise Intel lectual Property Management Manual and the

Compilation of Documents on Intellectual Property Procedures. The Intellectual Property Department

has established a three-level structure: "Management Representative – Intellectual Property Specialists

– Intellectual Property Part-time Personnel" with intellectual property personnel responsible for tasks

related to acquiring reviewing maintaining and managing intellectual property.ET9668 Chip

Metrics and targets

ETEK has clear objectives and plans for R&D innovation to maintain its continued leadership in the semiconductor

field enhancing the Company’s market competitiveness and industry influence.Metric Target 2024 Growth Rate

To continuously increase

Annual R&D investment investment in new RMB140559300 30.63%

technologies and projects

Intellectual Property Management Intellectual Property Compliance

Proportion of R&D To continuously optimize the System Certificate for ETEK Management System Certificate for

investment to operating structure to ensure steady 17.85% 5.72% Semiconductor

revenue increase in R&D investment

Number of intellectual To expand the number of 42 16.67%

property applications intellectual property rights

39 402024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Organizational Structure of Intellectual Property Department

In 2024 ETEK made significant achievements in technological innovation

with 42 new intellectual property applications and 52 new intellectual

Intellectual Property Department

property authorizations. By the end of the Reporting Period the Company

had accumulated a total of 191 intellectual property authorizations. These

patented products enhance the Company's market competitiveness.Head (management

representative)

Certificate of Completion

of Online Training on

Intellectual Property

Intellectual Property Specialists Intellectual Property

( IC layout design software Specialists (invention utility New Items in 2024 Cumulative Number

copyright) model patents trademarks) Intellectual

Property Item

Applications Items granted Applications Items granted

Invention patents 24 40 127 96

Intellectual Intellectual Intellectual Intellectual

Property Part-time Property Part-time Property Part-time Property Part-time

Personnel Personnel Personnel Personnel Utility model 4 5 35 31

patents

Design patents 0 0 1 1

The Company encourages the R&D team to proactively apply for patents thereby solidifying our

innovative achievements through legal means. At the same time we have actively reinforced a

company-wide culture of respect and protection on intellectual property and strengthened employee Software copyrights 3 3 9 9

awareness education on intellectual property protection through both online and offline training

thereby ensuring that our innovation is characterized by both bold exploration and prudent progress

avoiding any infringement on the rights of others. Others 11 4 62 54

Total 42 52 234 191

Intellectual Property Protection

Ethics of science and technology

3Sessions 24Hours 20Persons In the process of innovative R&D the Company strictly adheres to the norms of scientific ethics

Number of

Intellectual property Number of persons respects the spirit of science values humanistic care avoids the misuse of technology and prudently

intellectual property

training duration received intellectual

training sessions evaluates the application of achievements striving to benefit society and the environment while property training

promoting technological innovation with a responsible attitude. During the Reporting Period the

Company did not face any accountability or penalties from relevant authorities for violating scientific

ethics regulations.

41 422024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Promote Industry Development Co-founding of the Wuxi Innovative Enterprise Development Service Alliance

Case

As a leading semiconductor chip design company in the industry we are committed to driving industry

In January 2024 the Wuxi Financial Empowerment for Enterprise Innovation and Development

development through continuous product innovation constantly pushing the boundaries of technology. The Conference jointly hosted by the Wuxi Daily Newspaper Group and the Wuxi High-tech Industry

Company actively participates in the formulation and promotion of industry standards setting benchmarks with

Association was successfully held. The theme of the conference was "Two-Way Empowerment · Sci-

high-quality products and services and driving improvements in industry technology and quality. At the same time

Tech Innovation for Mutual Win." The conference aimed to build an innovative enterprise ecosystem

ETEK collaborates closely with upstream and downstream partners promoting technological advancements and

with "finance + industry" and "capital + projects" empowering each other promote the efficient

efficiency improvements in the industrial chain through deep collaboration with suppliers and customers.aggregation of financial resources and encourage collaboration between government banks and

ETEK continues to strengthen its core competitiveness gaining widespread industry recognition through enterprises to support the innovation and growth of Wuxi’s high-tech enterprises.technological innovation and excellent product quality. During the Reporting Period the Company received

multiple honors and certifications from industry associations demonstrating its strong industry influence and By participating in the Wuxi Financial

market competitiveness. These awards and certifications not only recognize the Company’s technological strength Empowerment for Enterprise Innovation

and management achievements but also inject new momentum into its development further enhancing its brand and Development Conference ETEK

image and industry position. In the future ETEK will continue to drive industry breakthroughs with technological showcased its industry leadership and social

innovation striving to become a global leader in high-tech enterprises. responsibility in promoting the integration

of finance and industry supporting the

development of SMEs driving intelligent

transformation and building a cooperative

and win-win ecosystem. ETEK's practices

not only inject new momentum into the

development of high-tech enterprises

in Wuxi but also set a model for the

sustainable development of the industry. Speech by Mr. Yuan Minmin Chairman of Wuxi ETEK

Microelectronics Co. Ltd.Wuxi Integrated Circuit

Jiangsu Semiconductor Jiangsu Integrated Circuit Industry "Xinchain" Party

Industry Association Society Building Alliance

Wuxi Innovative Enterprise Development Service Alliance

Wuxi High-Tech Zone Sci-Tech Enterprise Wuxi Internet of Things Innovation

Federation Development Research Association

43 442024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

China IC Design Innovation Conference & the Fourth IC Application Show

Case Supply Chain Security

From September 25 to 27 2024 the China IC Design Innovation Conference & the Fourth IC

Application Show (ICDIA-ICShow) were grandly held at the Wuxi Taihu Expo Center. ETEK actively Governance

participated in the exhibition joining industry peers to celebrate the event exchange ideas and move

As a leading analog chip design company in the industry ETEK has established a comprehensive supplier

forward together.management system. The Company has formulated various systems such as the Supplier Management Procedures

At this exhibition ETEK showcased its latest R&D achievements in four major product lines: protection Implementation Rules for Supplier Management System Supplier Control Procedures and Procurement Control

power management signal chains and drivers. Additionally ETEK introduced a series of innovative Procedures and has set up a complete supplier access evaluation and exit mechanism. The Operations

power management solutions focused on cutting-edge application areas such as AI terminals Department serves as the execution department for supply chain security control with the Quality Management

environmental sustainability and smart living demonstrating the company’s strong capabilities and Department and the Design Department providing assistance and collaboration. The quality control system covers

forward-looking vision in the field of integrated circuit design. the entire procurement and product processes ensuring product quality and gaining customer recognition and

trust.Among them ETEK's flagship imaging PMIC product was particularly notable. This product integrates

a 7-channel LDO including dual 1.5A channels and five 0.6A channels. It not only maintains high- Strategy

performance power output capabilities but also significantly reduces the overall solution's power

consumption and cost providing users with more efficient and energy-saving power solutions.ETEK integrates supplier management into its corporate development plan. Through comprehensive assessment

of each link in the upstream and downstream supply chain the Company anticipates risks and opportunities. The

Company implements a transparent procurement model working with supply chain partners to build a responsible

supply chain strengthen supply management improve supplier quality capabilities and ensure that the purchased

raw materials and production processes meet high standards achieving win-win cooperation. At the same

time ETEK emphasizes supplier training and information sharing promptly conveying quality management and

environmental requirements to ensure product quality and supply stability while promoting mutual development

between the Company and its suppliers.Management of impact risk and opportunity

The Company has established a systematic supply chain risk control framework. Various departments collaborate

to regularly conduct risk assessments and are able to quickly respond to any sudden supply chain events ensuring

the continuous stability of the supply chain.Risk Identification Risk Assessment Risk Response Risk Assessment

The Company regularly The identified risks Based on the results of A long-term

identifies potential are comprehensively risk assessments risk monitoring mechanism

risks in each link of analyzed and managed response strategies are is established to

the supply chain through a graded formulated including continuously track the

including raw materials system to ensure emergency plans overall operation of

finished goods that the severity and to ensure that the the supply chain. The

suppliers procurement potential impacts of the Company can respond Company maintains

transportation storage risks are understood in a quickly and maintain sensitivity to supply

and production. timely manner providing stable supply chain chain risks through

strategic reference for operations in the regular evaluations and

formulating appropriate event of unexpected real-time monitoring

response measures. situations. ensuring proactive

2024 IC (Wuxi) Innovation and Development Conference management.

45 462024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Supplier Management Flowchart

Metrics and targets

To ensure the effectiveness of supply chain management suppliers are required to sign the Anti-Commercial Supplier

development

Bribery Commitment Letter for Suppliers and provide relevant certificates such as quality management system and requirements

environmental management system certifications. The Company has formulated a series of quantitative indicators

to ensure the safety and stability of the supply chain.Metric Unit 2024

Supplier qualification/

capability investigation

Total number of suppliers / 109

Number of suppliers certified by quality management system / 82

N

Sample

confirmation

Proportion of suppliers certified by quality management system % 75

Y

Number of suppliers certified by environmental management system / 62

Evaluation of N

qualified suppliers

Proportion of suppliers certified by environmental management system % 57

Y

Signing of processing contracts

and quality agreements

Determination and issuance of

qualified suppliers

Excellence in Cooperation Outstanding Supplier Regular N Feedback to supplier

assessment for remediation

Y Y Evaluation of

Strengthening of supply chain management supplier remediation

N

The Company insists on optimizing processes strictly controlling quality and deeply collaborating with partners.Continued

An efficient and transparent supply chain management process is established comprehensively enhancing the Exclusion from

supply qualified supplier

Company’s competitiveness and demonstrating its leading position in the industry and continuous innovation

strength.

47 482024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

ETEK classifies suppliers into three categories based on their nature and scale and adopts differentiated ETEK has established a management structure consisting of the "General Manager – Design Institute

evaluation and confirmation methods: Project Team Operations Department and Quality Management Department" with the General

Manager leading the construction of the quality management system. The Operations Quality Testing

and Sales Departments collaborate closely to ensure the quality of products and services through

Category Description Evaluation and Confirmation enhanced communication and cooperation helping ETEK win market trust with its high-quality image.Suppliers with excellent reviews are included in the

Companies providing qualified list. Qualified suppliers are subject to re- Strategy

Category 1 wafers as well as listed evaluation as needed. Suppliers requiring improvements

Supplier packaging and testing are given a deadline for remediation and re-evaluation. In terms of safety and quality of products and services ETEK has developed a systematic strategic plan based

companies Suppliers who continuously fail to meet standards or on internal and external environments to address potential risks and seize key opportunities. The Company takes

corrective and preventive measures through internal audits management reviews and data analysis to address

are seriously unqualified are disqualified.product and service issues achieving continuous improvement. The Company closely monitors the changing

demands for higher-quality products and services from customers proactively adjusts strategic deployments and

ensures a quick response to market changes while continuously exceeding customer expectations. At the same

Medium-scale Samples and mass production batches must be time the Company organizes quality training irregularly conducts promotional and educational work on quality

packaging and testing qualified and comply with green GP product and ROHS

Category 2 requirements to raise employees’ quality awareness.companies providing requirements. After review and signature by the quality

Supplier

photolithography and R&D and other departments they can be listed as

wafer testing qualified suppliers.Small-scale packaging

and testing companies

Category 3 trading companies Only suppliers whose products meet the Company's

Supplier and suppliers of non- requirements can be registered as qualified suppliers.product-related

consumables

Quality Training

Safety and Quality of Products and Services

Management of impact risk and opportunity

Governance

ETEK has established a management process for safety and quality of products and services. From the perspective

ETEK always regards quality management as the core pillar of the Company’s steady development. The of product quality and services potential risks and opportunities are comprehensively identified and classified.Company fully implements the Product Quality Law of the People’s Republic of China and international Strict quality and risk controls are implemented at every stage of the product's lifecycle from the initial design to

standards such as ISO 9001 and has developed policies such as the Regulations on Quality Objective the final use by customers ensuring that product quality meets high standards.Management Product Testing and Assessment Process and Product Monitoring and Measurement

Control Procedures to provide systematic assurance for product and service safety and quality.

49 502024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Process Specific Content ETEK Quality Month activities of "Small Things Big Quality"Case

Before the product or project development a quality plan is formulated

Quality planning

setting clear quality objectives acceptance standards inspection methods In September 2024 ETEK launched a series of Quality Month activities under the theme "Small

etc. to provide guidance for subsequent product validation. Things Big Quality." These activities included soliciting small things encountered in daily work

that could impact work quality holding a prize-winning essay contest themed "Small Things Big

Control over production During the production outsourcing process the Company actively

Quality" for all employees and organizing quality knowledge quizzes. The aim was to enhance quality

communicates with suppliers provides quality requirements for their awareness across the Company.outsourcing

products and ensures that product quality meets the specified standards.A comprehensive inspection system is established and reliability testing

Quality inspection and equipment (such as imaging devices X-ray fluorescence spectrometers

testing etc.) is configured. Products are tested according to standards and non-

conforming products are controlled and processed accordingly.An after-sales service system is established to handle customer feedback

After-sales services and complaints in a timely manner track and resolve quality issues during

the product use process and collect customer feedback to improve product

quality.Metrics and targets

ETEK has defined its quality policy and integrated it into regular assessments. Through a clear system of indicators “Quality Month” Activities

and targets the Company ensures continuous improvement in customer satisfaction and product compliance

driving quality excellence and safety assurance. During the Reporting Period the Company did not experience any

significant responsibility incidents related to the safety and quality of product and service.Customer Service Metrics and Targets

Metric Unit Target 2024

Customer complaint handling rate % 100 100

Customer complaint resolution rate % 100 100

Customer satisfaction rate % Above 95 100

Product quality compliance rate % 100 100

ISO 9001 Certificate ISO 26262 Road Vehicles — Functional Safety

51 522024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Protection of customers' rights and interests ETEK attaches great importance to customer experience and has a complete set of procedures for handling

customer complaints returns and compensation etc. It responds to and handles customer issues in a timely and

ETEK fully recognizes the critical role of quality customer service in market expansion. The Company has efficient manner and achieved 100% customer satisfaction during the Reporting Period.formulated a series of management policies including the Customer Complaint Handling Procedures Customer-

Related Process Control Service Control Procedures and Customer Satisfaction Service Procedures to strengthen

customer service management and continuously improve service quality.

1 Complaint reception and identification

We always adhere to the business philosophy of "Based on Honesty Customer First Value Sharing" which is

integrated into every operational process of the Company. We implement targeted service strategies for different

types of customers (including major strategic customers as well as small and medium-sized customers) and Upon receiving a complaint the responsible departments must notify the Quality Application

different industries (such as new energy industrial automation etc.). Currently the service coverage for exclusive Design and Sales Departments. The Quality Management Department records the complaint in

teams for major customers has reached 100%. We put customers first aim to create customer value focus on the FA system requests the return of defective samples determines whether it is a yield issue or

a single-failure issue and handle it according to the corresponding process.communication and interaction with customers treat customers sincerely win their trust respond to customer

needs and solve customer problems.

2 Responsibility investigation and handling

High-reliability high-efficiency and high-performance charging protection solution

Case

The Quality Management Department leads the coordination with R&D Production and Sales

The Company has customized a complete charging protection solution for global leading Departments initiate a special investigation and produce an analysis report based on the

smartphone manufacturers. The solution includes over voltage protection chips with built- complaint type (yield/single failure).in surge suppression TVS protection diodes and RCB protection chips. This complete

solution with its robust current handling capability rapid over-voltage protection response

high flexibility and high integration offers significant advantages in the charging protection 3 Handling of customer returns and compensation

design of customers’ flagship products including enhanced system safety improved

user experience and support for miniaturized design. The product significantly increases

Based on the analysis report we maintain close communication with the customer. Returns are

the safety level of smartphone charging by establishing a solid protective barrier for the processed according to the Customer Return Flowchart and compensation claims are handled in

battery while also providing customers with a competitive edge and positive market accordance with the Compensation Flowchart.feedback.

4 Escalation of exceptional issues

Depending on the severity and impact scope of the product issue as well as the judgment of the

responsible person manager or director the issue may be escalated with timely reporting to

higher-level management.

53 542024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Customer Return Flowchart Compensation Flowchart

Customer

Customer feedback compensation

Accept compensation

request

Acceptance of return

information

Compensation

investigation

N Determination of return

validity

Y

Whether to Replenishment to Responsibility

replenish goods customer confirmation

Y

N

Collection of returned goods

registration in the system End

07

Corporate responsibility Factory responsibility

Handle according to the Handling

Procedures for Non-Conforming Products Negotiation of a

compensation plan

N Compensation provided

Whether the system Proceed with Compensation application by the factory

needs to be locked normal shipping End

N

Y Approval

Y

Compensation payment

End

55 562024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Data Security and Privacy Protection Risk Identification

The Company conducts a comprehensive inventory of all information assets clarifying the security

attributes (confidentiality integrity and availability) of various assets such as data software hardware

services and personnel. On this basis potential security vulnerabilities are identified by analyzing threats

Governance and weaknesses.ETEK places great importance on data security and privacy protection. The Company has formulated internal Risk Assessment

policies such as the Information Security Management Rules and Cybersecurity Norms to clearly define

responsibilities standardize operating procedures and establish emergency response plans. These provide The Company adopts a combination of qualitative and quantitative methods using asset importance

comprehensive security throughout the data lifecycle (collection storage transmission usage and destruction) as threat frequency and vulnerability severity as key indicators. A risk matrix is used to calculate risk values

(Risk Value = Asset Importance × Threat Frequency × Vulnerability Level) which are then used to assess

well as for network infrastructure and application systems. identified risks and visually present the likelihood and potential impact of security incidents providing a

scientific basis for risk mitigation.Information Security Management Rules and Cybersecurity Norms

Risk Response

Information Security Management Rules: The Company should establish security management

requirements across the entire data lifecycle covering data collection storage transmission usage The Company has developed targeted response strategies based on different risk levels. For unacceptable

high risks the Company adopts a comprehensive approach that includes strengthening security

and destruction ensuring that information security risks are identifiable and controllable.controls transferring risk or even avoiding the risk altogether. For low risks continuous monitoring and

appropriate management measures are implemented to keep them under control.Cybersecurity Norms: The Company should focus on network infrastructure and application system

security and reduce the risk of network attacks and data leakage through measures such as

Risk Monitoring

hierarchical protection rights management and log auditing.The Company monitors the effectiveness of risk management measures through weekly log recordings

and biannual security training sessions continuously tracking key security indicators and making timely

Strategy adjustments. When new risks or major security incidents occur the Company reassesses the risk level

to ensure residual risks remain controllable thereby enhancing the overall level of information security

ETEK has formulated a security strategy focused on prevention management.and supported by emergency response promptly identified

potential threats and weak points through regular information Risk Assessment Process

security risk assessments and adjusted its security strategy

dynamically. To respond to security incidents the Company

has established a comprehensive emergency response plan Define the Establish Prepare a risk

including incident reporting handling procedures follow- scope of risk a risk Identify risks Analyze and assess risks analysis and assessment

up recovery and summary analysis. This ensures rapid and assessment assessment team report

effective action in the event of a security incident minimizing

the impact on operations and stakeholders.The Company has also conducted regular data and information Metrics and targets

security training to educate all employees on confidentiality Information Security Training

In 2024 ETEK established clear management indicators and objectives for data security and privacy protection

policies cybersecurity norms risk prevention essentials and

ensuring the security and compliance of information and continuously enhancing its data protection capability.emergency measures continuously reinforcing security and

compliance awareness. During the Reporting Period no information leakage incidents of any kind occurred.Information Security Performance

Management of impact risk and opportunity

Information security Total participants in Total hours of participation in Offensive and defensive

Based on the key processes of risk identification assessment and control the Company has developed the ETEK

training conducted information security training information security training drills conducted

Information Security Management Rules. By accurately identifying potential threats and formulating systematic

countermeasures ETEK ensures that its information systems operate continuously and stably in strict accordance 4Times 30Persons 4Hours 2Times

with established procedures regulations and standards.

57 58Green Transformation:

Creating a New Low-Carbon

and Eco-Friendly Pattern

ETEK places great importance on environmental protection and is committed to resource con-

servation and sustainable development. The Company adheres to the policy of ?Compliance

with Regulations Pollution Prevention Enhanced Environmental Awareness and Product

Compliance Assurance? and refers to the TCFD framework to formulate practical measures in

areas such as climate change response environmental compliance waste management and

energy and water resource usage continuously promoting a green transformation.Material topics addressed:

Climate Change Tackling

Environmental Compliance Management

Waste and Pollutant Management

Energy and Water Resource Usage

Green Office

UNSDGs:

22 Sustainable Development Goals

CLEAN WATER AFFORDABLE & CLIMATE

16 AND SANITATION 7CLEAN ENERGY

ACTION

Ensure availability and sustainable Ensure access to affordable 13 Take urgent action to combatmanagement of water and reliable sustainable and climate change and its

sanitation for all modern energy for all impacts*2024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.Climate Change Tackling

Strategy

Governance To better climate change tackling the Company based on the characteristics of the semiconductor industry and

its medium- to long-term development strategy addresses both mitigation and adaptation aspects by formulating

potential challenges it poses to business and operations. The Company actively responds to national calls for and implementing multi-level corporate strategies and internal management measures. The Company is committed

action and continuously enhances its ability to climate change tackling by establishing the Strategy and ESG to improving energy efficiency optimizing production processes promoting low-carbon technological innovation

Committee and its subordinate Strategy and ESG Working Group to identify assess and manage relevant and strengthening green management across the supply chain to reduce its carbon footprint. At the same

risks. Risk assessment covers the likelihood of occurrence potential impacts and consequences. Based on the time we enhance our risk warning mechanisms improve emergency response plans and promote sustainable

assessment results the Company develops response measures which are implemented by relevant functional operational models to continuously strengthen the Company’s climate adaptation capacity and accelerate the

departments to mitigate potential risks and enhance resilience to climate change tackling. green transformation process.Risk Type Description of Potential Risk Financial Impact Countermeasures

Physical risks resulting from climate change

The Company should conduct regular safety hazard inspections and reinforce and repair aging or vulnerable facilities as

Acute risk

needed to ensure their stability and safety.(extreme It may cause transportation disruptions damage power and communication

The Company should closely monitor weather forecasts and extreme weather warnings establish comprehensive

weather such systems and affect the Company’s normal operations and delivery stability.emergency response plans to ensure timely response and take preventive measures in advance to minimize losses.as typhoons It may damage office facilities affect data center operations cause software Operating cost +

The Company should enhance the waterproofing moisture-proofing and mildew-resistance capabilities of storage

heavy rain crashes and data loss thereby disrupting business operations and resulting in Asset value -

facilities and optimize storage environments to reduce the impact of extreme weather on the quality of chips and other

flooding direct economic losses. Operating revenue -

products ensuring supply chain stability.caused by It may damage warehouses leading to product loss increased repair and

The Company should conduct regular inspections and reinforcement of office facilities to ensure the safe operation of

climate production costs and greater operational pressure.critical equipment. At the same time the Company should establish a sound data backup mechanism to prevent data loss

change)

and business interruption risks caused by natural disasters.A rise in average temperature may increase water and cooling demands

Chronic

thereby increasing energy consumption. The Company should monitor the effects of external temperature changes on equipment performance and lifespan and

risk (rise

The increase in energy load can strain power lines shorten equipment lifespan Operating cost + conduct regular testing and maintenance to ensure stable operation.in average

and raise the risk of fires caused by high-power electricity usage. Asset value - The Company should optimize the working environment and establish high-temperature operation management

temperature

Rising temperatures may also increase the risk of heatstroke among mechanisms to protect employee health and safety.etc.)

employees affecting workplace safety.Transitional risks resulting from climate change

With the introduction of relevant global regulations and standards the

The Company should establish a routine management mechanism for GHG emissions data.requirements for climate change disclosure by domestic regulators have been

The Strategy and ESG Committee and its working group should regularly follow up on laws and regulations and review

Policy and law refined and upgraded.Operating cost + the compliance of the Company’s environmental practices.risk The Company needs to pay continuous attention to compliance requirements.ESG reports should be continuously disclosed based on international standards and domestic regulatory requirements

Failure to stay current with the latest environmental regulations may result in

reflecting progress in addressing climate change.non-compliant disclosures affecting overall compliance.

61 622024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Risk Type Description of Potential Risk Financial Impact Countermeasures

Transitional risks resulting from climate change

The introduction of new laws regulations and green products imposes higher The Company should increase R&D investment and talent reserves carry out industry-academia-research collaborations

Technology

requirements on the Company’s green innovation capabilities increasing both R&D cost + and actively develop products with green innovation concepts to meet government and customer demands for green

risk

R&D costs and technical difficulty. and low-carbon products and services.The market is placing increasing emphasis on the environmental friendliness of

Operating cost + The Company should promote the development of green products and integrate sustainability concepts into the

Market risk the Companys’ products. Customers are more inclined to purchase power control

Operating revenue - Company’s business operations.chips with higher energy efficiency and better energy-saving performance.Stakeholders have higher expectations for low-carbon corporate operations. The Company should share green practices at industry forums obtain authoritative certifications to enhance

Reputational Operating cost +

Failure to enhance the Company's low-carbon operational capabilities may credibility release special reports disclosing environmental protection measures and leverage media to promote

risk Operating revenue -

negatively affect the brand image. sustainable development achievements.Opportunity

Description of Potential Opportunity Financial Impact Countermeasures

Type

Climate change-related opportunities

Product and

Develop high-quality green low-carbon products and services Operating revenue + The Company should increase R&D investment and design more energy-efficient eco-friendly power control chips.service

Changes The Company should actively expand into international markets with stringent environmental standards such as

in market Respond to the trend of global market demand for green products Operating revenue + Europe and the United States participate in international green exhibitions and obtain relevant certifications to

demand enhance global brand influence.

63 642024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Management of impact risk and opportunity Metrics and targets

The Company refers to the TCFD framework and has formulated the Identification and Assessment Procedures for The Company adheres to a green and low-carbon development path. To ensure that its environmental capabilities

Environmental Factors to identify physical and transitional risks brought about by climate change. These risks are meet industry requirements ETEK has established phased objectives for 2025 to serve as a guide for future

integrated into the overall risk assessment and management system with targeted response measures developed development. The Company relies on its internal carbon emission monitoring platform and follows international

accordingly. The Company’s environmental identification procedures apply to all environmental aspects related to standards such as ISO 14064 ISO 14067 ISO 14040 and ISO 14044 to continuously quantify and monitor carbon

its production and business activities. The Strategy and ESG Committee and the Strategy and ESG Working Group emissions. Strategic directions are adjusted in a timely manner based on data analysis.are responsible for leading the identification assessment and management of related risks. Risk assessment

covers the likelihood of occurrence potential impacts and consequences. Based on the assessment results the Metric Unit 2024

Company develops response measures which are implemented by relevant functional departments to mitigate

potential risks and enhance resilience to climate change tackling. Scope 1 direct carbon emissions * tCO2e 100.78

Scope 2 indirect carbon emissions * tCO2e 1036.94

Activities products/services organized

Total GHG emissions (Scope 1 and 2) tCO2e 1137.72

Identify factors GHG emissions intensity tCO2e/RMB1 million 1.44

Environmental surveys across the

Company and departments

Head of each department

Environmental impact assessment * Scope 1 emission factors for gasoline natural gas and liquefied petroleum gas are sourced from the National

of departments Greenhouse Gas Emission Factor Database.Determine * Scope 2 GHG emissions are calculated based on the National Greenhouse Gas Emission Factor Database issued

by the Ministry of Ecology and Environment. The average CO2 emission factor for Jiangsu provincial electricity in

Company-wide environmental impact 2022 was 0.5978 kgco2e/kwh.Key assessment

environmental

Key environmental factor or not

factors Manager of the

Comprehensive Noise emissions must meet

Yes List of key environmental factors Department the requirements of Class III

standards under GB12348 There should be no fire 01 06 incidents

Emission Standard for Industrial

Enterprises Noise at Boundary

Recording

ETEK Wastewater management

Environmental

Hazardous solid waste must 05 must comply with relevant Objectives

be handled in compliance 02 regulations

Notification to relevant departments with regulations

Manager of the Comprehensive Department The Company's products and

Reflected in environmental objectives and purchased products must be free Hazardous substances (lead cadmium

indicators of conflict metals such as gold

mercury hexavalent chromium etc.) 03 04 (Au) tantalum (Ta) tungsten (W)

in both Company-manufactured and tin (Sn) and cobalt (Co) produced

procured products must be 100% from minerals in conflict zones

compliant and not exceeding limits

ETEK Identification and Assessment Flowchart for Environmental Factors

65 662024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Environmental Compliance Management The Company is exposed to unexpected environmental risks including fire power outages catastrophic weather

and poisoning. In daily operations the Company actively conducts environmental risk identification and hazard

inspections regularly organizes emergency drills and raises employee awareness of risk prevention. A Safety

Committee and Emergency Response Team led by the General Manager have been established. In the event of

Environmental management system and policy an emergency the Company will immediately initiate its emergency response plan prioritize personnel safety and

implement protective and transfer measures for critical equipment to minimize loss. Following any incident the

Company will conduct a thorough root cause investigation produce an Incident Investigation and Handling Report

ETEK regards environmental management as a vital component of its corporate social responsibility. The Company

and propose improvement and prevention measures to continuously optimize the emergency management system

actively responds to national sustainable development goals and strictly complies with laws and regulations such

and strengthen overall risk prevention capabilities.as the Environmental Protection Law of the People's Republic of China and the Law of the People's Republic of

China on Environmental Impact Assessment. The Company has formulated and implemented internal policies such

as the Identification and Assessment Procedures for Environmental Factors and the Environmental Management

Standards for Products establishing a systematic environmental management framework led by the Strategy and Environmental protection-related training

ESG Committee. This enhances the Company’s green operational capabilities and deeply integrates low-carbon

concepts into corporate operations and strategic planning.To better implement the environmental management system and improve responsiveness to emergency

The Strategy and ESG Committee and its working group conduct comprehensive reviews of environmental risks environmental events the Company conducts regular training in environmental protection and emergency

and opportunities faced during business operations formulate targeted emergency response plans and regularly response.organize employee training to continuously enhance environmental compliance awareness and risk response

capabilities.

2024Key performance highlights

During the Reporting Period ETEK obtained 4 training sessions on environmental 155 participants in training

an ISO 14001 Environmental Management protection and emergency response

System Certification and had no violations

of environmental laws or regulations nor

any penalties from regulatory authorities.ISO14001 Environmental Management System Certificate

Response plan for environmental risk emergencies

The Company is deeply aware of the important impact of environmental risk emergencies on its business Rescue Drill

and employee safety so it has formulated the Emergency Preparedness and Response Procedures providing

systematic guidelines for safety protection and emergency response. The Company carries out all-round

management at three levels namely risk inspection emergency response and post-event conclusion so as to

cultivate the rapid response capability of all employees and responsible departments and to minimize the losses

brought by the emergencies.Fire Safety Training

67 682024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Green Office

Energy Conservation Initiatives

ETEK strictly abides by the Environmental Protection Law of the People's Republic of China the Water Law

of the People's Republic of China Energy Conservation Law of the People's Republic of China. Internally it Use energy-efficient lighting equipment; avoid “always-on” lights

has implemented the Energy Conservation Management Policy Energy Conservation Technology Supervision

Standards and 5S Management Regulations to promote comprehensive energy-saving and consumption-reduction Set office equipment to automatic sleep mode and turn off all non-

essential equipment after work hours

practices reduce resource waste and encourage all employees to participate in green environmental initiatives. Energy

conservation and

The Company sets specific requirements for energy conservation water saving and recycling and places green Control A/C frequency and temperature reasonably to avoid energy waste;

consumption

office reminders in its workplace to foster a sustainable corporate culture and effectively implement the green ensure windows and doors are closed when A/C is operatingreduction

development philosophy. Give priority to the procurement and use of energy-saving devices; reduce

use of non-essential high-power equipment

Regularly inspect water-use equipment and promptly repair dripping

faucets to reduce water waste

Water saving

Distribute water-saving educational materials guide employees to use

water responsibly and improve sink hygiene management

Promote the “Clean Plate Campaign” in the cafeteria to eliminate food

Other eco-

waste and foster good habits of frugal dining

friendly

Water-Saving Signage Projection for Paperless Office initiatives Encourage employees to prioritize green and low-carbon transportation

methods for business travel to reduce carbon emissions

Circular economy

The Company actively practices the circular economy philosophy

and promotes internal resource recycling management to drive an

efficient and low-carbon operating model. Through maintenance

and reuse initiatives equipment such as fans UPS units motors

and IGBTs are repaired to maximize component reuse and reduce

resource waste. The Company encourages the conservation of office

Power-Saving Signage resources by setting up a reused paper collection point promoting

paper recycling defaulting printers to double-sided printing and Secondary-use Paper Pick-up Area

reducing color printing to improve resource utilization efficiency.A/C Temperature Not Lower Than 26° C

69 702024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Waste and Pollutant Management Establish designated waste storage areas equipped with features such as rain-proofing

leak prevention spill containment and loss prevention and strictly store non-hazardous

solid waste in accordance with regulatory requirements.Strictly comply with environmental protection laws and regulations implement garbage

Non-hazardous classification management prohibit arbitrary disposal or landfill and entrust qualified

waste third-party organizations to centralize garbage disposal.Assign dedicated personnel to supervise the implementation of hazardous waste

management organize training to enhance employees’ environmental awareness and

standardize the recording of ledgers and reports to ensure that the waste disposal

process is controlled.Hazardous Strictly implement the Measures for the Management of Hazardous Waste Transfer

waste Forms fill out the transfer forms accurately and report it in a timely manner to

environmental authorities ensuring data accuracy consistency and traceability.Waste Emissions and Consumption of ETEK in 2024

ETEK is a fabless IC design enterprise which does not directly engage in product manufacturing. As such Volume of non-hazardous Volume of non-hazardous

waste generated waste recycled

the environmental impact caused by waste generated during operations is relatively minimal. Nonetheless the

Company attaches great importance to waste management and strictly complies with laws and regulations such 6.2Ton 1Ton

as the Environmental Protection Law of the People’s Republic of China the Law of the People’s Republic of China

on Prevention and Control of Environmental Pollution by Solid Waste the Law of the People’s Republic of China

on Prevention and Control of Water Pollution the Law of the People’s Republic of China on the Prevention and

Control of Noise Pollution and the Measures for the Management of Hazardous Waste Transfer Forms. Internally

Volume of hazardous Volume of hazardous

it has formulated policies including the Management Regulations on Wastewater Discharge the Management

waste generated waste recycled

Regulations on Solid Waste the Management Regulations on Energy Conservation and Consumption Reduction

and the Management Regulations on Noise Emission to ensure the compliance of waste disposal and minimize Used Battery Recycling 0.16Ton 0.16Ton

environmental impact to the greatest extent.Waste management

Wastewater management

ETEK's operations do not involve hazardous solid waste from production. Only a small amount of copper-containing

waste circuit boards is generated during design and testing processes. Non-hazardous waste mainly consists of The Company has no production-related water usage; wastewater is mainly generated from domestic water use.household waste. Despite the limited amount of hazardous waste the Company places high importance on its The Company strictly complies with the Integrated Wastewater Discharge Standards and the Wastewater Quality

management. It has developed hazardous waste emergency response plans and prepared an annual hazardous Standards for Discharge to Municipal Sewers ensuring that discharged water meets quality standards and that

waste management training plan. Each project department of the Company maintains a solid waste ledger with wastewater is discharged in a regulated manner through the park's sewage system to ensure environmental

dedicated personnel responsible for the storage inspection and supervision of waste materials. The Company compliance. Each year the Company commissions a professional agency to conduct water quality monitoring and

also organizes competitive bidding for qualified used items to ensure the standardized and compliant handling of issue a Water Quality Testing Report to ensure that water resource management aligns with relevant regulations

waste. and to promptly identify and resolve potential issues.

71 722024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Wastewater Treatment Measures of ETEK

Management of Energy Conservation and Consumption Reduction

The use of wastewater to flush pipelines is If there is too much wastewater in the

prohibited. If such an operation is necessary wastewater pool on site the Company should

it must be approved by relevant authorities contact qualified wastewater treatment General Manager Comprehensive Finance Operations Department Department Department

and effective pollution prevention measures organizations for handling.must be implemented. Coordinating energy

m a n a g e m e n t

M a n a g i n g a n d Conso l i da t i ng the

approv ing energy-

s u p e r v i s i n g t h e Company ’s overa l l

saving targets and An a l y z i n g e n e rg y

Company ' s energy energy consumption

Dumping of waste oil or leftover food into s u p e r v i s i n g t h e i r usage and providing

and water resources d a t a f o rmu l a t i n g

the sewage system is strictly prohibited. The Domestic waste must be cleared regularly to i m p l e m e n t a t i o n d a t a s u p p o r t t o

use of phosphate-containing detergents for prevent contamination caused by rainwater regularly organizing energy conservation formulating strategies o p t i m i z e e n e r g y

dishwashing is also forbidden to prevent runoff energy-saving training t a r g e t s a n d to ensure eff ic ient c o n s e r v a t i o n

water pollution. and promoting best submitting them to e n e r g y u s e a n d objectives.practices in energy the General Manager

driving the realization

conservation. for approval.o f e n v i r o nmen t a l

objectives.Noise management

The Company strictly adheres to the Class III standards under GB12348-2008 Emission standard for industrial

enterprises noise at boundary ensuring that boundary noise levels do not exceed 65 dB during the day and 55

dB at night. To ensure effective noise control the Company regularly monitors noise pollution points. Third-party Energy conservation and consumption reduction initiatives

organizations are engaged to provide a Noise Testing Report and relevant equipment is maintained and serviced

ETEK strictly follows the Management Regulations on Energy Conservation and Consumption Reduction and

to reduce noise impact and ensure compliance with environmental standards.actively implements control measures to support the enhancement of energy and water resource management.In 2024 the Company launched several practical initiatives—for example posting water-saving signs in office and

production areas to raise employees’ awareness of water conservation and regularly inspecting and maintaining

Energy and Water Resource Usage water-use equipment to ensure optimal performance. These efforts significantly enhanced water management efficiency and delivered notable results in water-saving practices.Key performance highlights

ETEK's operations primarily consume electricity and water. The Company places great emphasis on energy

and resource management and has implemented the Management Regulations on Energy Conservation and

Consumption Reduction in the long term which define the scope processes and specific requirements of the Gasoline32.14Ton Total energy consumption260.99Ton of standard coal

management system. Through a systematic management model the Company continues to promote technological

upgrades optimize energy usage and improve resource utilization efficiency. 173.46 Total water consumptionElectricity purchased kW h ( m u n i c i p a l w a t e r s u p p l y ) 4160Ton

A resource conservation management system has been established led by the General Manager and executed

collaboratively by all departments. Responsibilities are clearly defined to ensure implementation. Through a

systematic evaluation mechanism the Company regularly monitors energy consumption continuously optimizes

management strategies and improves resource efficiency.

73 74People-Centered Coexistence:

Shaping the Future

Together with Employees

ETEK always adheres to the values of ?empathy in relations rigor in operations? and places

great importance on the growth and well-being of every employee. We are committed to

building a diverse equal and inclusive work environment where employees can thrive in a

safe healthy and dynamic atmosphere. The Company continuously optimizes communica-

tion mechanisms and enriches employee activities forming an open transparent and

efficient management system. Adhering to a people-oriented approach we promote the

steady and sustainable development of both the enterprise and its employees achieving

people-centered coexistence. At the same time as a company focused on sustainable

development we fully recognize the importance of assuming social responsibility. Through

active participation in public welfare and social initiatives we spread warmth and positive

energy with concrete actions contributing to the creation of a more harmonious and better

society.Material topics addressed:

Protection of Employee Rights and Interests

Diversity and Inclusiveness

Occupational Health and Safety

Career Development and Training

Social Contribution and Rural Revitalization

UNSDGs:

Sustainable Development Goals 1 Sustainable Development Goals 9 12 Sustainable Development Goals Sustainable Development Goals 15 Sustainable Development Goals 3330 Sustainable Development Goals

NNOO NOGOOD HEALTH QUALITY GENDER REDUCED SUSTAINABLE

1POPOVEVRETRYTY 3POV&E WRTELYL-BEING 4 EDUCATION EQUALITY INEQUALITIES CITIES ANDEnd poverty in all its End pEonvseurtrey ihne aalllt hitys lives and Ensure inclusive and 5 Achieve gender equality and 10 Reduce inequality within COMMUNITIESforms everywhere formsp ervoemryowteh werell-being for equitable quality education empower all women and girls and among countries

all at all ages and promote lifelong learning 11Make cities and humanopportunities for all settlements inclusive safe

resilient and sustainable2024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.Protection of Employee Rights and Interests Key performance highlights

Male employees: 64% Employees with disabilities: 0.2%

Employment compliance Female employees: 36% Return-to-work rate after parental leave: 100%

To protect the legal rights and interests of employees ETEK strictly complies with the Labor Law of the People’s Ethnic minority employees: 0.9% Number of discrimination incidents during the year: 0

Republic of China the Labor Contract Law of the People’s Republic of China the Law of the People's Republic of

China on the Protection of Minors and the Law of the People’s Republic of China on Labor-dispute Mediation and

Arbitration ensuring that all processes including recruitment attendance payroll and resignation management

Number of employees by gender

are lawful and compliant. Based on the Company’s operational needs internal documents such as the Personnel New recruits

Management Regulations and Implementation Standards and the Recruitment and Onboarding Management Policy

have been established to continuously improve the personnel management system and provide employees with

191

clear career development pathways. 51

The Company publishes job postings through diverse channels such as online platforms campus recruitment

headhunting firms and offline recruitment events. Following the principles of "recruitment by need fairness 49

and merit-based selection" the Company adopts multi-dimensional interviews and assessment mechanisms to 328

ensure fair recruitment practices. Upon onboarding the Company promptly signs standardized labor contracts

with employees and in accordance with relevant laws and internal policies pays full social insurance and housing

provident fund contributions to comprehensively safeguard employees’ rights. Social recruitment Recruitment of new graduates Male employees Female employees

Eradication of child labor

Number of employees by educational background Number of employees by position level

In terms of prevention of child labor and forced labor we abide by laws and regulations such as the Law of

the People's Republic of China on the Protection of Minors and the Provisions on Prohibition of Child Labor.

127

In case of any breach of required procedures or inadequate control during the recruitment we will hold 295 450

relevant departments and personnel accountable to prevent any incidents involving child labor or forced

labor. No child labor incidents occurred during the year.

53

9716

Equality and inclusion Employees with bachelor's degree

Employees with associate degree and below Grassroots employees Middle managers

ETEK actively recruits employees from diverse backgrounds cultures and skill sets. Through cross-departmental Employees with postgraduate degree and above Senior managers

collaboration and internal job rotations we foster diverse thinking and innovation. The Company fosters a

respectful and inclusive workplace environment and strictly prohibits all forms of discrimination and harassment

in recruitment promotion and performance evaluation. Any unfair treatment based on gender age ethnicity or Employee democratic management

other characteristics is forbidden. Regarding the protection of women's rights and interests the Company strictly

complies with the Law of the People’s Republic of China on the Protection of Rights and Interests of Women

and has formulated the Management Procedures for Female Employee Protection to ensure fair recruitment and ETEK places high importance on employees' rights and interests and has established a comprehensive complaint

equal employment opportunities for female employees. We prohibit unreasonable conditions based on gender or and grievance mechanism aiming to build a harmonious and stable labor relationship. The Company has

marital/childbearing status fully safeguard the rights of female employees and support them in realizing their formulated the Management Procedures for Employee Feedback Suggestion Complaint Handling and Response

full potential. At the same time the Company has established independent complaint and feedback channels and established a mechanism for employee grievances and complaints. The Comprehensive Department or a

equipped with dedicated investigation mechanisms. Once any misconduct is discovered the Company upholds a management representative is responsible for managing employee complaints.zero-tolerance policy and ensures timely handling of such incidents.

77 782024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Speaking up for rights

Incentive mechanism

The Company actively encourages employees to express their opinions and

ETEK has established a comprehensive employee incentive mechanism to fully mobilize employee

suggestions through multiple channels such as written or direct complaints. enthusiasm. The Company developed the Employee Incentive Management Mechanism and built a

These measures ensure employees' rights to know participate express and scientific incentive system. In line with the Company’s characteristics the incentives are categorized

supervise are fully protected. This not only helps safeguard employees’ legal into three types: Commendation Merit Awards and Promotion. Employees who demonstrate exceptional

performance in safeguarding the Company’s honor accomplishing tasks saving costs innovating and

rights and interests but also fully activates their initiative encouraging them to

protecting the Company’s assets are rewarded. Through this incentive mechanism ETEK effectively

actively participate in corporate management. In turn this promotes scientific and motivates employees' enthusiasm and creativity promoting mutual growth between employees and the

democratic development in corporate decision-making. Company.Suggestion Box

Incentive-worthy fact occurs

Key performance highlights Supporting materials may

be attached

The employee’s department completes the

Employee satisfaction rate: 95.34% Incentive Notification Form

Recipient signs for confirmation If the recipient refuses

Remuneration and benefits to sign a written appeal must be submitted;

otherwise the incentive

ETEK adheres to the management principles of "legal compliance transparency incentive orientation and will be considered Proposer signs with comments accepted by default

adaptability" continuously improving its remuneration policies and payment mechanisms. The Company has

formulated a series of policies including the Corporate Remuneration Management Policy the Remuneration and

Benefits Policy and the Year-end Bonus Appraisal Measures. Based on job value individual capability and market

trends a diversified salary structure has been developed.The employee’s department signs with comments

Flexible remuneration management

The Comprehensive Department submits comments

The Company adjusts salaries with flexibility based on business performance and labor market pricing

while also considering individual contributions and skill development. Higher salary increases are offered

to high-level in-demand talent and salary adjustments are made for employees with outstanding General Manager/President gives approval

performance or promotion. At the same time the Company monitors overall payroll budgets using

indicators such as labor cost ratio and labor distribution rate to maintain a balance between long-term

operational stability and employee motivation.Announce implement and file

Employee Incentive Flowchart

79 802024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Employee care

ETEK provides a comprehensive benefit and welfare system for all employees focusing on their

physical and mental well-being. In addition to providing basic legal benefits the Company offers a

wide range of non-salary benefits covering both work and life scenarios to provide all-around care

and support for employees and their families.Lantern Riddle Guessing Birthday Celebration

Pension fund medical insurance work-related

injury insurance unemployment insurance

maternity insurance and housing provident fund

Statutory benefits关怀福利

Mountain Climbing Basketball Game

Holidays birthday celebrations Rental subsidies Best New Product

benefits for female employees team- Award rewards for outstanding

building activities meal benefits employees disability subsidies and

health check-ups and travel invention patents

Caring benefits Special benefits

Outdoor Hiking Team Building

Colorful activities

Career Development and Training

ETEK actively organizes a series of diverse and unique activities for employees to enhance team

cohesion and collaboration building a positive corporate culture. The Company organizes a

variety of activities such as Lantern Riddle Guessing Birthday Celebrations Outdoor Hiking and Open training platform

Travel. These activities designed to be both fun and educational foster better understanding

and cooperation among employees helping them relieve work stress broaden their horizons and

ETEK adheres to the principle of hiring people based on both virtue and talent and always views employee

strengthen their sense of belonging. Through these initiatives we continuously create a positive and

training as a crucial strategy for enhancing the Company's core competitiveness. We have established the Training

uplifting corporate culture atmosphere showcasing our attention and investment in the well-being

Management Policy and offer systematic tiered and diverse training to help employees quickly master job-related

and quality of life of our employees.skills understand the corporate culture and continuously improve service levels and management abilities. This

ultimately fosters the shared growth of both the Company and its employees.

81 822024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

To ensure the systematization and effectiveness of training the Company has built a training system that covers all

During the reporting period the company organized and carried out various training activities

employees with training categorized by levels. We use performance evaluations surveys departmental interviews

and other methods to accurately identify training needs for each position and compiled the Summary of Annual

Training Plans as a blueprint for employee training.Mid-to-senior management training Training for technical professionals

Trainees Content Specialized training themed "Quality Lecture" The R&D department organizes training to

Modern business management theories organizational decision-making has effectively enhanced the management's comprehensively enhance technical capabilities.Management personnel understanding and practical ability in quality

skills and strategic management of the Company and its systems.management.Technical professionals Specialized techniques fundamental theories and business practice.System-related knowledge auditing skills and system-related laws and

Internal auditors of systems

regulations.Design processing production Refresher training on professional knowledge required for implementing

and quality control personnel certification systems.HR and financial staff HR and financial knowledge commensurate with their roles.Multi-dimensional training

ETEK has built a comprehensive talent development system with the Comprehensive Onboarding training for new employees

Department responsible for organizing and implementing the training. A variety of methods

including internal instructors external experts and team-building activities are adopted. The

training process follows a strict procedure: needs assessment curriculum development training Six sessions of training were

execution effectiveness evaluation and archive management. This ensures that the training organized covering 94 person-

results are implemented effectively and provide strong support for employee promotion and times helping new employees

performance evaluations. qu ick ly in tegra te in to the

corpora te cu l tu re and job

requirements.Key performance highlights

Investment in employee training: RMB594000

Total participants in training: 578 person-times

Total training duration: 7523.70 hours

Average training duration per employee: 13.01 hours

Training coverage rate: 60%

83 842024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Career development

Training on Golden Rule of Recruitment Interview

Based on the requirements of the Company and specific positions training is provided on The Company has established a comprehensive development system for employees. Based on factors such

interview techniques to help select candidates who match the required competencies for the as experience responsibilities work skills performance job positions and market positioning a specialized

positions. promotion and development mechanism has been established for different levels of employees. This system

covers all job categories including management support R&D engineering and after-sales skills and provides

dual development paths in both management and professional roles allowing employees to better unleash their

potential.Promotion mechanism

The Company offers two career development paths: management and technical. Employees can

choose their development direction based on their strengths and career plans. Management

path focuses on cultivating leadership and team management skills. Promoted employees will

be responsible for overall planning team coordination and similar tasks. Technical path focuses

on enhancing professional technical expertise. Employees are encouraged to deeply explore

their technical fields and provide the Company with innovation and support in technology.Each year through performance evaluations and talent reviews promotion conditions and

assessment standards are clearly defined ensuring that "the capable rise and the incompetent

are replaced." This creates broad and fair career development paths for employees.The hiring department submits a list of

candidates for promotion or salary increase

Fenbei Tong training Knowledge sharing competition

Training on the use of Fenbei Tong software is The Company organizes internal knowledge

The Comprehensive Department conducts a

conducted for certain personnel. competitions providing employees with preliminary review

a platform to showcase their skills learn N

and communicate which helps stimulate Y

employees' innovative spirit. The implementation department recommends

and conducts democratic voting

N

Return to the original department for review

Return to the original department for review

Y

Implementation of the “three tests”

N

Return to the original department for review

Y

Publicize and issue appointment letters

Promotion Process

85 862024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Occupational Health and Safety Case

The Company has equipped office areas with ergonomic desks and chairs to improve the

ETEK regards occupational health and safety as an important cornerstone for sustainable development. The

Company strictly adheres to relevant laws and regulations such as the Labor Law of the People's Republic of working environment and reduce the risk of occupational injuries caused by prolonged poor

China Fire Prevention Law of the People's Republic of China and industry standards and has formulated sound posture.safety production responsibility system and internal management policies including but not limited to the Safety

Production Responsibility System Regulations on Safety and Civilized Production ESD Protection Regulations

Fire Safety Management Regulations Operating Standards for Hazardous Substance Testing Equipment and

Emergency Preparedness and Response Procedures ensuring that all production and management activities

comply with legal requirements.The Company is actively advancing the establishment of an occupational health and safety management system

by systematically identifying and assessing hazardous factors in the production process improving safety risk

identification and control mechanisms and implementing preventive measures and continuous improvements.In this process the Company conducts regular internal and external audits risk assessments and performance

evaluations to gradually achieve the standardization scientific approach and internationalization of occupational

health and safety management.Ergonomic Chairs in the Office Area

Identification of hazardous factors

The Company is equipped with professional testing equipment such as the XRF spectrometer to strictly test raw

materials semi-finished products and finished goods that may contain environmentally regulated substances. Safety emergency plan

This ensures that materials containing prohibited or restricted chemicals do not enter the production process

protecting employee health and environmental safety. The Company regularly monitors occupational hazards

ETEK has developed emergency response plans covering scenarios such as fires power outages natural disasters

such as noise and dust concentration. Based on the testing reports the Company conducts risk assessments and

implements corresponding protective and corrective measures. Anti-static zones are established in the production chemical spills and workplace injuries based on the Emergency Preparedness and Response Procedures (ETEK/

workshops with temperature and humidity controlled within reasonable ranges. Employees are required to wear QP-30) and has established an emergency command organizational structure. The Company has clarified safety

anti-static wristbands gloves shoes and clothing to ensure the safety of production operations and product production responsibilities at all levels from the Senior Management to frontline employees with specific safety

quality. management duties assigned to each department. The General Manager leads the safety production leadership

team and department heads take direct responsibility for safety management ensuring the principles of "who is in

charge who is responsible who executes who implements."

Occupational health protection The Company regularly organizes AED training hazardous material handling and equipment safety operations.Each department collaborates with the Comprehensive Department to conduct at least one fire drill and other

The Company provides employees in different positions with personal protective equipment that complies with emergency exercises each year ensuring a rapid and efficient response to emergency situations including rescue

national standards and industry norms and regularly checks its effectiveness and proper usage. The Company personnel evacuation and accident control. In 2024 the Company conducted four emergency training and drill

organizes annual occupational health checkups for employees. For positions with higher risks such as exposure activities significantly enhancing employees’ emergency response and self-rescue capabilities.to high temperatures dust chemicals and noise stricter specialized health examinations and monitoring are

conducted. The Company also provides training on occupational disease prevention to ensure that employees are

fully aware of the risks and protection measures related to their positions.

87 882024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

Information Technology In specialized fields such as hazardous chemical management ESD protection and noise control the

Department Company regularly invites external experts to provide targeted training and technical guidance continuously

strengthening employees' awareness and skills in risk prevention and control.Securities

Department ETEK continues to enhance employee safety awareness and skill training improving risk control and

emergency management and steadily progressing toward the goal of "zero accidents zero injuries."

Finance Department

Metric Unit 2024

Testing Workshop

Safety investment RMB’0000 21.44

Application

Department Safety training coverage rate % 100

Deputy team

Team leader:

leader: Mao Participants in safety training Person 519Testing Department

Yuan Minmin

Chenglie

Total training hours of production safety Hour 6228

Sales Department

Work-related injury rate % 0

Operations

Department Occurrence of occupational disease % 0

Quality Management Employee checkup coverage rate % 100

Department

Comprehensive Employee Health and Safety Performance

Department

Design Institute Social Contribution and Rural Revitalization

Organizational Structure for Emergency Command

Support for public welfare and charity

ETEK has always adhered to the responsibility philosophy of "Originating from Society Giving Back to Society." The

Company actively participates in various community public welfare activities and charitable donations encouraging

employees to engage in public welfare through various means and contribute positively to social development. We

firmly believe that only by continuously enhancing the Company’s competitiveness while actively fulfilling social

responsibility can we achieve mutual benefit and progress for both the Company and society.Training on the Operation of AED Rescue Equipment Fire Drill

89 902024 Environmental Social and Governance Report Wuxi ETEK Microelectronics Co. Ltd.

ETEK donated to the drinking well project in Halazhigou Village Huzhu County supporting water ETEK hosted the "ETEK Cup" badminton match energizing campus life

Case supply projects Case

As a representative enterprise in the ETEK actively supports university campus culture and sports activities. We partnered with Southeast

Xinwu District ETEK actively practices University Wuxi Campus to jointly organize the ETEK Cup badminton match enriching students'

social responsibility and along with other extracurricular lives and promoting industry-academia-research exchanges.enterprise representatives generously

donated to the drinking well project

in Halazhigou Village Huzhu County.This philanthropic effort reflects ETEK's

concern for the welfare of the people

and contributes positively to regional

collaboration and development.Public welfare education for the talented

ETEK understands that education is the foundation for stimulating innovation and achieving sustainable

development. We collaborate closely with multiple universities supporting teaching research and the cultivation Supporting youth and accompanying career development

of high-level talents through donations scholarships and academic exchanges.ETEK actively builds platforms to provide innovative practice opportunities for young talents helping them stay

ETEK established the ETEK Award Fund to promote education for good at the forefront of the industry and grow through experience. We provide quality job opportunities for university

Case

graduates broaden their career paths and deeply participate in talent cultivation assisting from teaching practices

to career guidance ensuring students’ smooth transition into employment.ETEK established the ETEK Award Fund which helps students pursue their dreams through

scholarships. Upholding the spirit of "Striving for Perfection" we promote the wider cultivation of

innovative talent.Best Strategic Partner for University Graduate Employment Hong Kong and Macau Youth Innovation

and Entrepreneurship Base Enterprise

Practice Alliance Unit

91 92Appendices

Social Performance

Appendix 1 Table of Key Performance Metric Unit Data of 2024

Amount of R&D investment 　 RMB’0000 14055.93

Metric Unit Data of 2024 Proportion of R&D investment to

%17.85

Operating revenue RMB’0000 78749.33 operating revenue

Net profit attributable to the listed Number of R&D personnel 　 / 293

RMB’0000 12585.74

company’s shareholders Percentage of researchers in

%56.45

Total assets RMB’0000 145748.26 total workforce

Basic earnings per share RMB 0.94 New intellectual property

Case 42

applications in 2024

Environmental Performance —New invention patent

Case 24

applications

Metric Unit Data of 2024

—New utility model patent

Environmental Total investment in environmental 　 Case 4

RMB’0000 1.09 applications

input protection

Direct (Scope 1) GHG emissions tCO2e 100.78 —New software copyright 　 Case 3

applications

Indirect (Scope 2) GHG emissions tCO2e 1036.94 Innovation and R&D

—Other new applications 　 Case 11

GHG emissions Total GHG emissions (Scope 1 and 2) tCO2e 1137.72

Total number of intellectual

Total GHG emissions per million revenue 　 Case 234

tCO2e/RMB1 million 1.44 property rights applications

(Scope 1 and 2)

New intellectual property

Total electricity consumption kWh 173.46 　 Case 52

authorizations in 2024

Gasoline Ton 32.14

—New invention patent

Case 40

Natural gas 10000 cubic meters 0.03 authorizations

Liquefied petroleum gas Ton 0.07 —New utility model patent

Energy usage 　 Case 5

Outsourced electricity kWh 173.46 authorizations

Total energy consumption tons of standard coal 260.99 —New software copyright 　 Case 3

authorizations

Total energy consumption per million tons of standard coal/

0.33

revenue RMB'0000 —Other new authorizations 　 Case 4

Water usage Total water intake volume Ton 4160 Total intellectual property 　 Case 191

authorizationsw

Volume of non-hazardous waste generated Ton 6.2 Employees with bachelor's 　 / 279

Solid waste Volume of non-hazardous waste recycled Ton 1 Educational background degree or above

discharge 0.16 of R&D personnelVolume of hazardous waste generated Ton Employees with below bachelor's degree 　 / 14

Volume of hazardous waste recycled Ton 0.16

93 94Social Performance Social Performance

Aged under 30 　 / 206 Employment contract signing rate 　 % 100

Age of R&D personnel Aged 31-50 　 / 77 Social insurance coverage rate 　 % 100

Aged 51-60 　 / 10 Total employee discrimination cases 　 Case 0

Product quality Product quality compliance rate 　 % 100 Labor standards Coverage rate of union/collective bargaining agreement 　 % 100Customer complaint resolution

Customer service rate 　 % 100 Forced labor incidents 　 Case 0

Customer satisfaction rate 　 % 100 Child Labor Incidents 　 Case 0

Number of employees 　 / 519 Participants in safety training 　 Person 519

Number of employees Total training hours of production safety 　 Hour 6228

engaged during the / 100 Per capita training duration 　 Hour 12

New recruits Reporting Period Safety training coverage rate 　 % 100

Of which: New / 51 Safety drills and emergency exercises 　 Time 4graduates Coverage of occupational health

Number of employees by gender Male employees / 328 Occupational examination

%100

Female employees / 191 health and safety Occurrence of occupational disease 　 % 0Employment Senior managers / 16 Major production safety accidents for the Number of employees by year 　 Case 0

position level Middle managers / 53 Work-related injury rate 　 % 0Grassroots employees / 450 Number of work-related death 　 / 0

Employees with

bachelor's degree or / 392 Work-related deaths per 100 million

Person/

Number of employees by revenue 　 RMB100 0

educational background above millionEmployees with below / 127 Total number of suppliers 　 / 109bachelor's degree Supplier China (including Employee turnover rate Turnover rate 　 % 9 management Number of suppliers by geographical Hong Kong Macau / 107

Number of employees trained 　 Person 578 region and Taiwan)Overseas suppliers / 2

Total employee training hours 　 Hour 7523.70 Information security training conducted 　 Time 4

Average training hours of

employees 　 Hour 13.01 Total participants in information security 　 Person 30

Employee training Employee training coverage rate 　 % 60 Information

training

security Total hours of participation in information Senior employees % 28 security training

Hour 4

Proportion of employees who O昀昀ensive and defensive drills conducted 　 Time 2

received training (by level) Mid-level employees % 32

Grassroots employees % 40 Information leakage incidents 　 Case 0

Employee satisfaction Contributions to Charitable contribution 　 RMB’0000 45

survey Employee satisfaction 　 % 95.34 the society Tax rating 　 level A

95 96Governance Performance Appendix 2 Report Index Table

Data of

Metric Unit

2024 Report Index Table of the Guidelines No. 14 of Shanghai Stock Exchange for Self-regulation of Listed

Companies - Sustainability Report (Trial) (April 2024)

Members of the Board of Directors 　 / 9

By independent

Number 3 Disclosure

director Dimension No. Article Corresponding Report Chapter

Independent or not Percentage of Requirement

independent % 33.33 Climate change

1 Articles 21-28 Section 1 of Chapter III Climate Change Tackling

directors tackling

Doctor Number 2 Pollutant Section 4 of Chapter III Waste and Pollutant

Composition of 2 Article 30

Master Number 4 discharge Managementthe Board of By educational background

Directors Below bachelor's Section 4 of Chapter III Waste and Pollutant

Number 3 3 Waste disposal Article 31

degree Management

Male directors Number 7 Not applicable. The Company’s location is not

By gender

Ecosystem and within a key protection area and its production and

Female directors Number 2

4 biodiversity Article 32 business activities do not have a significant negative

Aged 50 and above Number 5 protection impact on ecosystems and biodiversity. As such this

By age Environment

issue has not been included in ETEK's ESG topics.Aged under 50 Number 4

Environmental

Board of Directors' meetings 　 Time 8 Section 2 of Chapter III Environmental Compliance

5 compliance Article 33

Meetings of the Board of Directors' Audit Management

Time 5 management

Committee

Section 5 of Chapter III Energy and Water Resource

Board of Supervisors' meetings 　 Time 8 6 Energy usage Article 35

Usage - Energy usage

Company

Number of Shareholders' Meeting held 　 Time 2 Usage of water Section 5 of Chapter III Energy and Water Resource

operations 7 Article 36

Number of proposals approved by the Board of resources Usage - Usage of water resources

/38

Directors Circular Section 3 of Chapter III Green Office - Circular

Number of proposals approved by the Board of 8 Article 37

/ 22 economy economy

Supervisors

Number of proposals approved by the Rural Section 4 of Chapter IV Social Contribution and

/ 13 9 Article 39

Shareholders' Meeting revitalization Rural Revitalization

Number of violations of antitrust and unfair

Case 0 Contributions Section 4 of Chapter IV Social Contribution and

Compliance competition laws 10 Article 40

management Number of violations of social laws and

to the society Rural Revitalization

Case 0

regulations Innovation-

11 Article 42 Section 1 of Chapter II Innovation-Driven

Cash dividend per share in 2024 　 RMB 0.6 Society driven

Interests of Ethics of

Number of disclosed report documents 　 / 62 Section 1 of Chapter II Innovation-Driven - Ethics of

investors 12 science and Article 43

science and technology

Number of investor research meetings held 　 Time 4 technology

Anti-commercial Supply chain

Integrity education and employee training 13 Article 45 Section 3 of Chapter II Supply Chain Security

bribery and 　 % 100 security

coverage

anti-corruption

97 98Disclosure Appendix 3 Feedback Form

Dimension No. Article Corresponding Report Chapter

Requirement

Not applicable. The topic "Equal Treatment to Dear Reader

Small and Medium-sized Enterprises" applies to

Thank you for reading this Report. This is the 2024 ESG Report released by ETEK.entities with accounts payable (including notes

Equal treatment payable) exceeding RMB30 billion or accounting To enhance the communication value of this Report and effectively advance our ESG management and practices

for more than 50% of total assets by the end of we sincerely invite you to complete this feedback form. Your invaluable feedback will help us continuously improve.to small and

14 Article 46

medium-sized the reporting period or those that have disclosed

Wuxi ETEK Microelectronics Co. Ltd.enterprises overdue payments to small and medium-sized

Address: 8 Xinhui Ring Road Xinwu District Wuxi City Jiangsu Province

enterprises via the National Enterprise Credit

Tel.: 0510-85210118

Information Publicity System. ETEK does not apply

this topic and has not included it as an ESG topic. Email: marketing@etek.com.cn

Society

Website: https://www.etek.com.cn

Safety and quality

Section 4 of Chapter II Safety and Quality of

15 of products and Article 47 Your Information

Products and Services

services Name: Post:

Data security and Profession: Email:

Section 5 of Chapter II Data Security and Privacy

16 customer privacy Article 48

Protection

protection 1. How would you rate the overall quality of this Report

□ Excellent □ Good □ Average □ Poor □ Very Poor

Section 1 of Chapter IV Protection of Employee

17 Employees Article 50

Rights and Interests 2. How effectively do you think this Report has reflected ETEK's significant impact on the environment society and governance

Due Diligence and Communications with □ Excellent □ Good □ Average □ Poor □ Very Poor

18 Due diligence Article 52

Stakeholders 3. How would you rate ETEK's performance in stakeholder communication

Communications Due Diligence and Communications with □ Excellent □ Good □ Average □ Poor □ Very Poor

19 Article 53

with stakeholders Stakeholders

Sustainablity- 4. How would you rate the authenticity accuracy and usefulness of the information and data disclosed in this Report

related Anti-commercial □ Excellent □ Good □ Average □ Poor □ Very Poor

governance Section 3 of Chapter I Honest Operation - Anti-

20 bribery and anti- Article 55

commercial bribery and anti-corruption 5. How would you rate the overall structure and readability of this Report including its content design and layout

corruption

□ Excellent □ Good □ Average □ Poor □ Very Poor

Anti-unfair Section 3 of Chapter I Honest Operation - Anti-

21 Article 56 Which section of this Report interests you the most

competition unfair competition

Which ESG information in this Report is the most helpful to you

Do you have any suggestions or feedback for ETEK's future ESG reports

99100