Stock code
Co-Innovating A Smarter Future
Topband
ESG Report 2024
Shenzhen Topband Co. Ltd.Topband ESG Report 2024
About the Report
This is the 5th Social Responsibility Report and the 4th ESG Report issued by Shenzhen Topband Co. Ltd.since its listing which discloses Topband's activities and performance in the main areas of sustainable
development including environment society and governance. The Report was deliberated and approved at the
18th Meeting of the 8th Board of Directors of Topband held on March 26 2025 and was released together with
Topband's Annual Report 2024.Time range
January 1 2024 to December 31 2024. Some parts of the Report involve the information of previous years
to ensure its integrity.Data and content
The data and cases that are used in the Report are all from official documents statistical reports and other
documents provided by relevant departments of the Company. The Report does not contain any false information
or misleading statements and Shenzhen Topband Co. Ltd. is responsible for the truthfulness accuracy and
completeness of the content herein.Unless otherwise specified the monetary amounts involved herein are expressed in RMB.Basis of preparation
The Report is prepared based on the actual situation of the Company in accordance with the relevant
requirements of the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange -
Sustainability Report (For Trial Implementation) and the Global Reporting Initiative (GRI) Standards. The
disclosures of indicators in the Report are detailed in "Index".Language of the Report
The Report is prepared in Chinese and translated into English. Should there be any discrepancies or
misunderstandings between the two versions the Chinese version shall prevail.And the report electronic version
is available on our official website: https://www.topband.com.Contact information
Department: Securities Department of Topband
Address: Topband Industrial Park Keji Second Road Shiyan Sub-district Bao'an District Shenzhen
Tel.: 0755-26957035
Fax: 0755-26957440
Email: wenzh@topband.com.cn
1About the Report ................................... 1
Chairman's Statement ................................ 3
ABOUT TOPBAND ....................................... 6
ESG MANAGRMENT ..................................... 13
Green Empowerment Ecological Leadership ............ 18
1.1 Reinforce Environmental Management ............. 19
1.2 Combat with Climate Change ..................... 23
1.3 Efficiently Use Resources ...................... 29
1.4 Protect Ecological Environment ................. 35
Innovation Navigates Compassion Accompanies ........ 42
2.1 Be Original in R&D to Pursue Excellent Quality.. 43
2.2 Optimize Service to Ensure Responsible Supply... 50
2.3 Protection of rights and interests and strengt.. 53
2.4 Health care to promote the development ......... 60
2.5 Never Stop Public Welfare with Love ............ 67
Prudent Governance Sustainable Future .............. 69
3.1 Improve Management Systems ..................... 70
3.2 Stick to Compliant Development ................. 77
3.3 Adhere to Business Ethics ...................... 80
3.4 Protect Data Security .......................... 83
Key Performance Indicators (KPIs) .................. 86
Index .............................................. 93
2Topband ESG Report 2024
Topband ESG Report 2024
Chairman's Statement
Wu Yongqiang
Chairman of Shenzhen Topband Co. Ltd.Dear shareholders partners and all friends concerned about Topband
Hello everyone!
Thank you for your continuous attention to and trust in Topband. In 2024 we successfully achieved the
strategic goal of "restarting growth". The Company's operating income exceeded RMB 10 billion for the first
time seeing the year-on-year growth rate regain double-digit growth. The overall profitability operational
efficiency and per capita efficiency of the Company were significantly improved compared to those in 2023
with the health of the Company further enhanced. In the past year the industry of power tools and home
appliances experienced continuous rapid development the transformation of digital energy business achieved
initial success and a series of intelligent systems with strong market competitiveness were launched. These
advances are inseparable from the efforts and dedication of all Topband employees as well as the continued
support of all shareholders and partners.In the past decade we have achieved tenfold growth. Such sustained and stable "resilient growth" not only
reflects the society's increasing demand for intelligent products but also embodies Topband's original aspiration
of long-term adherence to "value creation through technology" and the fact that it has always implemented the
business philosophy of "Agility·Innovation·Partnership". We have built a technical platform of "four electrics
and one network" and established a customer-centered global operating system forming a multi-level business
layout and a good customer structure and enabling the Company to maintain resilient growth in the face of
market fluctuations.
3Chairman's Statement
4Topband ESG Report 2024
In 2025 we have three strategic priorities to support the realization of the overall strategic policy of
"accelerating growth":
I. Expand the share of component business. The business of intelligent controller components has always
been Topband's dominant field. In 2025 we will continue to focus on resources enhance our competitiveness
further expand our market share in existing fields and actively explore new fields to become the "hidden
champion" in more segments.II. Make breakthroughs in AI system business. Artificial intelligence (AI) is rapidly changing our lives
and industrial models. Topband will continue to increase investments in AI and intelligence with a particular
focus on the application of AI technology in terminal products. The Company plans to implement a
responsibility system for younger product managers stimulate the team's innovation potential continuously
launch more competitive AI system products and strive to create "category champions" in multiple
sub-categories gradually growing into a leading AI application company.III. Accelerate overseas marketing. At present half of the Company's business comes from overseas
markets and we have established multiple operation bases overseas. We shall further accelerate "overseas
marketing". We shall not only seize the opportunities of global industrial chain transfer but also actively develop
local markets and build a truly international company.We are well aware that there are no companies successful once and for all but only ones that constantly
adapt to the development of the times. From RMB 10 billion to RMB 100 billion we stand at a new starting
point. We firmly believe that when the control technology is deeply integrated with artificial intelligence a new
pattern of a trillion-level intelligent hardware industry is taking shape. Topband will gradually grow from a
leader in intelligent control to an expert in AI applications and actively participate in and promote industrial
upgrading.We look forward to working with you to create this intelligent and beautiful future!
March 28 2025
5Chairman's Statement
Interpretations
Terms Refer to Contents
Company the Company Topband Refer to Shenzhen Topband Co. Ltd.CSRC Refer to China Securities Regulatory Commission
Exchange Refer to Shenzhen Stock Exchange
Reporting Period Refer to January 1 2024 to December 31 2024
Articles of Association Refer to Articles of Association of Shenzhen Topband Co. Ltd.Shiyan Branch Refer to Shiyan Branch of Shenzhen Topband Co. Ltd.Huizhou Topband Refer to Huizhou Topband Electrical Technology Co. Ltd.Ningbo Topband Refer to Ningbo Topband Intelligent Control Co. Ltd.Nantong Topband Refer to Nantong Topband Lithium Battery Co. Ltd.Topband Romania/Topband Europe Refer to Topband Smart Europe Company Limited S.R.L.Topband Mexico Refer to Topband Mexico Company Limited
Topband Battery Refer to Shenzhen Topband Battery Co. Ltd.AI Refer to Artificial intelligence
BLDC Motor Refer to Brushless DC Motor
BG and BU Refer to Business Group and Business Unit
IPD Refer to Integrated Product Development
1C1C3S Refer to Cell cloud platform BMS PCS EMS
6Topband ESG Report 2024
ABOUT TOPBAND
ABOUT TOPBAND
7ABOUT TOPBAND
Shenzhen Topband Co. Ltd. (hereinafter referred to as "the Company" or "Topband") is a provider of
product solutions with rich technical experience in the intelligent control industry. With the core technology
system of "four electrics and one network" (electric control motor battery power and IoT) the Company is
specialized in developing manufacturing and selling components and systems. The components mainly include
intelligent controllers high efficiency motors battery packs power products etc. The systems mainly include
AC/DC charging piles industrial and commercial energy storage products household energy storage products
and AI systems. Our products are widely used in three major fields: tools and home appliances digital energy
and intelligent vehicles and robots. We not only offer innovative efficient and reliable customized services to
global customers but also bring green intelligent and innovative products to consumers.Power Tools
Home
Appliances
Digital Energy
Intelligent
Vehicle
Robots
Remarks: The above are some of the Company's clients and the rest have not been disclosed due to business secrecy.Established in 1996 and listed on the Shenzhen Stock Exchange in 2007 Topband is a state-recognized
enterprise technology center a national high-tech enterprise a pilot demonstration enterprise in Shenzhen an AEO
a winner of the Shenzhen Industrial Award and a winner of the China Manufacturing Champion for its smart home
control module. In 2024 the Company ranked 62nd in the 2023 Top 500 Manufacturing Enterprises in Guangdong.Since its listing the Company has realized solid financial performance with sales revenue exceeding RMB 10
billion and a total of 11617 employees in 2024.Sweden
UK
Poland
Germany
Austria
Timisoara Romania
USA Turkey Jinan
Taixing Japan
Chengdu WuhanN anjin
Nga ntong
Suzhou Hangzhou
Power Tools and Digital Energy and C Shanghai Guiyang honWgquinhga n Changsha Ningbo Taizhou
Monterrey Mexico Dongguan FoshRan oboWtenszhou Huizhou
Home Appliances Intelligent Vehicles Hong Kong Pune India Thailand Shenzhen
4D.o4ng 6Nai% Vietn am
76% 19.54% Singapore
Indonesia
South Africa
New Zealand
8Topband ESG Report 2024
ABOUT TOPBAND
Technologies & Platforms
Electric control The Company takes microcomputer as the core to achieve intelligent control and
has formed hundreds of electric control technology platforms. The Company has
accumulated a lot of experience and technologies in key areas such as automatic
control human-machine interaction embedded computing machine vision robotics
intelligent sensors and motion control. The technologies can fulfill the needs of
products like power tools and home appliances digital energy robots and intelligent
vehicles.Motor technology The Company makes continuous innovation around high efficiency low noise
high precision and high stability of motors and has built complete technical
capabilities from motor design and simulation testing and verification to large-scale
manufacturing with dozens of advanced motor product platforms formed including
Brushless DC (BLD-C) motors coreless motors stepper motors and servo motors.Our motor technology takes the lead in the industry and in terms of the
application of motor technology in new energy vehicles robot and medical care we
have achieved remarkable results which has been widely recognized in the market. We
have a coreless motor product platform covering outer diameters of Φ7 to Φ40 a
complete brush/brushless product lineup and design research development and
production capabilities for key components including motors reduction gearboxes
screws encoders controllers as well as their actuator module assemblies with an
annual production capacity of over one million motors.Battery technology The Company has built complete design development customization and
production technology capabilities around the Cell Cloud Platform BMS PCS and
EMS (1C1C3S) system. In terms of battery management system (BMS) we have
achieved industry-leading accuracy and reliability. With advanced algorithms and
control strategies our BMS can monitor and manage the battery status in real time
ensuring optimal performance and safe operation of the battery system. Technological
innovations in this area have made us a market leader when providing efficient and
safe battery solutions for energy storage systems power backup power exchange and
portable devices.Power technology The Company has various analog power supply switching power supply and
digital power technology platforms with different power levels and types. It can
provide charging inverter and various customized power supply solutions. Our power
conversion system (PCS) uses innovative energy management strategies and
high-precision power quality control technology which supports a wide range of
battery types and configurations and meets the needs of energy storage applications
varying in scale. In terms of photovoltaic inverter technology we have significantly
improved the energy conversion efficiency of solar panels with advanced control
algorithm and efficient electrical energy conversion circuit design supporting a variety
of communication protocols. In the field of high power DC charging piles we have
achieved fast and safe charging of electric vehicles by using efficient power electronic
conversion technique and intelligent charging control algorithm.IoT platform As the key to connecting the perception network and application layers the IoT
platform enables us to intelligently connect devices and efficiently manage data. With
complete technical capabilities from modules and smart terminals to applications
(APP) and Platform as a Service (PaaS) we can provide integrated solutions for
multiple industries. In the development of the photovoltaic power generation energy
storage and charging cloud platforms we have achieved the intelligent collaboration of
solar power generation energy storage and charging facilities with the advanced IoT
technology; our digital energy management platform provides comprehensive energy
monitoring analysis and optimization for the industrial commercial and public
facilities with big data and artificial intelligence technology.
9ABOUT TOPBAND
Development Course
2024
Realized a revenue of RMB 10.5
billion
2016
Focused on energy storage and new
energy vehicle parts in the new
energy industry
Acquired Shenzhen YAKO Automation
Technology Co. Ltd. in 2016
Entered the industrial control industry
Included in the supplier system of a head tool 2019
Started the localization of home appliance control brand in 2010 Realized a revenue of over RMB 4.1 billion
in China in 1996 Entered the tool industry
Entered the home appliance control industry
2007
2013
Listed on the Shenzhen Stock Exchange
Realized a revenue of over RMB 1 billion
(Stock code: 002139.SZ)
China's first listed company in the
intelligent control industry
1996
Established
2016
2010 Developed IoT platforms
2009 Developed power technologies
2007 Developed battery technologies
1996 Developed motor technologies
Made breakthroughs in electric
control technologies
Global Layout
Sweden
UK Poland
Germany
Austria
Timisoara Romania
USA Turkey Jinan
Taixing Nantong
Nanjing Japan Chengdu Wuha Hangzhou
Guiyang S
nu zhou
Changsha Shanghai
Ningbo
Monterrey Mexico Chongqing Dongguan Taizhou
Overseas Foshan HuizhWouen zhou
Pune India Hong Kong
Shenzhen
output value Thailand
Dong Nai Vietnam
RMB 2.2
billion + Singapore
Headquarters (Shenzhen) Indonesia
Production Base/
R&D Center South Africa
Huizhou No.1 Industrial Park Huizhou No.2 Industrial Park (under construction) Ningbo
Nantong (under construction) Taixing Chongqing
Shenzhen YAKO Huizhou YAKO Hangzhou YAKO New Zealand
Timisoara Romania Dong Nai Vietnam Pune India Monterrey Mexico
Subsidiaries/ Offices
Shanghai Taizhou Suzhou Nanjing Hong Kong Guiyang Wuhan Changsha Foshan Dongguan Chengdu Wenzhou Jinan
America Germany South Africa Japan Britain Sweden Singapore Thailand New Zealand Poland Indonesia Austria Turkey
10Topband ESG Report 2024
Key operation results
Operating income Net cash flow from
operating activities
RMB 10.50 billion
RMB 1.09 billion
Net profit excluding
Gross profit rate Net profit belonging EPS (basic)
extraordinary profit
to parent company
22.97% and loss RMB 0.55
RMB 671 million
RMB 642 million
Total tax payment
R&D investment Proportion of R&D R&D personnel (including tax
payment at home and
input
RMB 952 million 2178 abroad)
9.07% RMB 353 million
Net assets Total assets Estimated dividend Buyback amount
amount
RMB 6.7 billion RMB 12.8 billion RMB 95.7 million
RMB 86.02 million
In 2024
The Company supplied nearly 1.63 billion sets of intelligent control products to downstream enterprises and customers
Intelligent controllers are the core Topband's high-efficiency motors focus Battery packs are the third largest
business of Topband. In 2024 it shipped 178 on three categories including external-rotor category of Topband's component products
million sets of intelligent controllers with a brushless DC motors used in the tool with a wide range of applications including
year-on-year increase of 28.5% taking a industry LiDAR motors used for not only the industry of power tools and
leading position in the field of intelligent automobiles and coreless motors used for home appliances but also e-bikes onboard
control solutions for home appliances and robots. In 2024 it shipped 3.53 million sets equipment and other business scenarios. In
power tools. of high-efficiency motors with a 2024 it shipped 564MWh of battery packs
year-on-year increase of 100% and it ranked with a year-on-year increase of 27%.among Tier 1 in the industry.
11ABOUT TOPBAND
Market recognition▼
Date of
Subject Award Granting organization
Recognition
Topband Top 10 Best Cultural Enterprises and Best Employers in Hipo a human resource consulting
2024/2/22
Romania Timisoara Romania company in Romania
OFweek 2023 "Excellent Demonstration Project" Award
2024/3/19 Topband OFweek
in Energy Storage Industry
Ministry of Industry and Information
Manufacturing Individual Champion Demonstration
2024/4/9 Topband Technology of the People's Republic
Enterprise (Smart Home Control Module)
of China
China Internet of Things Industrial
2024/4/24 Topband "Top 100 IoT Enterprises in China"
Application Alliance
No.62 in Top 500 Manufacturing Enterprises in Guangdong Manufacturers
2024/5/28 Topband
Guangdong Association
Huizhou No.85 in Top 500 Manufacturing Enterprises in Guangdong Manufacturers
2024/5/28
Topband Guangdong Association
Topband Industry and Information Technology
2024/8/27 High-tech enterprise recognition
Battery Bureau of Shenzhen Municipality
Mingtai Industry and Information Technology
2024/8/27 High-tech enterprise recognition
Intelligent Bureau of Shenzhen Municipality
Topband Industry and Information Technology
2024/8/27 High-tech enterprise recognition
Motor Bureau of Shenzhen Municipality
Bao'an District Human Resources
2024/9/2 Topband Chief engineer studio recognition
Bureau
Huizhou Huizhou Industry and Information
2024/9/11 High-tech enterprise recognition
Topband Technology Bureau
Zhongke Biaochuang (Guangdong)
Certificate of "International Advanced" Scientific and
2024/9/17 Topband Science and Technology Project
Technological Achievements
Evaluation Center
2024/10/16 Topband Annual Energy Storage BMS Excellent Brand China Magisterial Energy Network
2024 Gao Gong Golden Globe Award - Annual Pioneer in 2024 Gao Gong Annual Conference
2024/12/13 Topband
Exploring Overseas Market on Energy Storage
Quality recognition▼
Date of
Subject Award Granting organization
Recognition
2024/12/24 Topband Quality Innovation Competition TOP8 milwaukee (subsidiary of TTI)
Sustainable development-related recognition▼
Date of
Subject Award Granting organization
Recognition
Huizhou
2024/11/20 ECOVADIS Gold Recognition EcoVadis
Topband
2025/3/12 Topband CDP climate change B - and water safety management B CDP
Capital market recognition▼
Date of
Subject Award Granting organization
Recognition
"Top 100 Fastest Growing Chinese Listed Companies" in
2024/10/24 Topband Securities Times
the 18th China Listed Company Value Evaluation
2024/12/26 Topband Top 300 Most Popular Listed Companies RoyalFlush
12Topband ESG Report 2024
ESG MANAGRMENT
ESG MANAGRMENT
13ESG MANAGRMENT
ESG governance
Topband has deeply integrated the concept of sustainable development into its strategies and daily
operations built a management system with ESG as the core and continuously improved the governance
efficiency through strategy guiding system improvement organization optimization and multi-cooperation
laying a solid foundation for long-term value creation. Under the five strategic frameworks of "scale growth
customer Intimacy innovation-driven refined operation and organization development" the Company integrates
ESG goals into the overall development planning and establishes a dynamically optimized management indicator
system to ensure that the environmental social and governance issues are addressed as the business grows. As
the highest decision-making organ of ESG governance the Board of Directors comprehensively arranges the
review and supervision of major ESG issues regularly evaluates the policy risks and opportunities guides the
business department to make response strategies and plans to establish a Strategy and ESG Management
Committee in March 2025 to further enhance the strategic decision-making efficiency and resource integration
capability.To increase transparency and standardization the Company strictly conforms to the international standards
such as Global Reporting Initiative (GRI) and Task Force on Climate-Related Financial Disclosure (TCFD) and
domestic regulatory requirements and has continuously released the Social Responsibility Report since 2020
which was upgraded to ESG and Social Responsibility Report in 2021 and renamed as ESG Report in 2024. The
Report is publicly released together with the Annual Report after consideration at the Annual Board Meeting.The Report presents Topband's practices and achievements in low-carbon transition employees' rights and
interests and governance and optimization and updates the responsibility fulfillment news via Topband's official
website and WeChat Official Account. Besides The Company actively participates in global ESG ratings and
regularly responds to CDP climate change questionnaires. In 2024 Huizhou Topband a core wholly-owned
subsidiary of Topband gained the Ecovadis Gold Recognition with its excellent performance ranking among the
top 5% of the global participating enterprises which reflects the international community's high recognition of
Topband's ESG management.Topband has established an ESG risk identification and response mechanism to enhance the ESG awareness
of all employees through special training policy interpretation and cross-department cooperation. The Board of
Directors regularly reviews the system improvement and policy compliance in ESG areas to ensure the
forward-looking and robust business operations. The Company extends the ESG concept to supply chain
management advocates the cooperation principle of "equality health fairness and justice" gives priority to
partners whose value fits the value of the Company clearly defines the ESG standards such as environmental
protection and labor rights in the contract and cooperates with the upstream and downstream enterprises in green
technological innovation and energy efficiency improvement to build a low-carbon intelligent industrial chain. In
the future Topband will continue to deepen the strategy guiding by the Board of Directors and improve the risk
control and performance appraisal system striving to become an ESG benchmark for the global intelligent
control industry and contributing wisdom and strength to the sustainable development of the society.
14Topband ESG Report 2024
Assessment of substantive issues
Topband continues to optimize ESG management and carries out evaluation of substantive issues based on
the internal and external environmental changes. Taking into account its business characteristics and operations
Topband conducted an in-depth analysis of macro trends reporting criteria and intra-industry focuses and
established an ESG issue library consisting of 20 key issues forming an importance matrix of ESG substantive
issues approved by the internal management after comprehensive and scientific evaluation.This matrix identifies issues from two dimensions - "the importance of economic environmental and social
impacts" and "the impact on the stakeholder assessment and decision-making" - to systematically present the
priority of issues. Through visual analysis the Company has identified the disclosure priorities of the Report and
based on this optimized the ESG management system and made targeted management plans to promote ESG
integration into daily operations and strategic planning providing an important support for the continuous
improvement of ESG governance.Environment▼ Society▼ Governance▼
Greenhouse gas management Employment of employees and their Corporate governance
rights and interests
Protection of shareholders' rights and
Combat with climate change Occupational safety and health
interests
Environmental management and
Employee development and diversity Compliant operation
opportunities
Water resource management Employee care and communication Risk management
Information security and privacy
Pollutant management Product R&D and Innovation
protection
Waste management High-quality products services Business ethics
Responsible supply chain
Social welfare
High
Low
Low Importance of economic environmental and social impacts High
15
Impact on stakeholder assessment and decision-makingESG MANAGRMENT
16Topband ESG Report 2024
Stakeholder communication
Topband has always adhered to the concept of open and transparent governance and continued to deepen
the communication with key stakeholders such as the shareholders clients employees communities and partners.Through the multi-dimensional communication channels we established we actively listen to and respond to the
expectations and demands of the stakeholders with the purpose of forming a long-term sustainable relationship
on mutual trust.Our current communication channels include: annual general meeting of shareholders and temporary
meetings that guarantee the shareholders' right to know and make decisions; regular questionnaire surveys that
cover all stakeholders; one-to-one in-depth discussion for key clients; the experience sharing platform of
summits and ESG forums; special dialogue mechanisms such as the workers' congress and the supplier
responsibility communication meeting. Through the systematic collection analysis and feedback mechanism we
ensure that the ESG management is closely related to all stakeholders. In the future we will continue to improve
communication mechanisms maintain close contact with key stakeholders and jointly promote the continuous
improvement of ESG governance work.Stakeholders Expectations and demands Response and communication
Government and regulators Greenhouse gas management Response to national policies
Combat with climate change Law-abiding and compliant operation
Environmental management and opportunities Practicing green development
Water resource management
Pollutant management
Waste management
Corporate governance
Compliant operation
Information security and privacy protection
Business ethics
Shareholders and other Corporate governance Enhance information disclosure and response (shareholders'
investors Protection of shareholders' rights and interests meeting investor exchange meeting performance briefing
Compliant operation investor hotline SZSE Cloud Platform and Topband Investor
Risk management Relations Applet)
Strengthening Corporate Governance
Maintain shareholder rights and interests
Law-abiding and compliant operation
Customers Product R&D and Innovation Provide high-quality products and services
High-quality products services Strengthen customer privacy security and protection
Information security and privacy protection Adhere to business ethics
Business ethics
Suppliers and other High-quality products services Strengthen supply chain management
partners Responsible supply chain Conduct supplier training
Business ethics Adhere to business ethics
Employees Employment of employees and their rights and Protect employee rights and interests
interests Ensure occupational safety and health of employees
Occupational safety and health Promote employee development
Employee development and diversity Strengthen employee communication
Employee care and communication (Congress of Workers and Staff Journal of Yanxingzhe
Colleague Bar Employee Experience Platform)
Media Pollutant management Enhance information disclosure
Employment of employees and their rights and Media interview and exchange and cooperation
interests Timely update the Company's official website
High-quality products services
Business ethics
Community Social welfare Carry out voluntary service activities
Conduct charity donations
17Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
Green Empowerment
Ecological Leadership
With the value of "making the world more intelligent and low-carbon" Topband continues to explore the
path of properly combining environmental benefits with economic and social benefits and practices the principle
of "prevention first and integrating prevention with control". It has established an environmental management
system in accordance with ISO 14001. Topband is committed to realizing the synchronous planning
implementation and development of production construction and environmental protection utilizes the "four
electrics and one network" (electric control motor battery power and IoT platform) technologies and integrates
the intelligence and low-carbon concept into products and services to create a green sustainable development
ecosystem and make contributions to the realization of a smart and low-carbon future.
18Topband ESG Report 2024
1.1 Reinforce Environmental Management
Topband has established and improved the environmental management system to continuously optimize the
environmental management rules and organization structure and ensure the compliance of environmental
management. Besides the Company provides environmental training for employees to strengthen the concept of
green office and fully improve the environmental management capability.
1.1.1 Environmental compliance management
Topband strictly abides by 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 the Prevention and Control of Environmental Noise Pollution and other
national laws and regulations as well as other laws regulations and policy documents applicable to the places of
the global businesses. It has formulated a series of internal management systems including the Environmental
Analysis and Risks and Opportunity Control Procedure the Environmental and Safety Management Control
Procedures of Interested Parties and the Policies on Labor Health and Safety Environment Low Carbon and
Ethics to continuously improve the environmental management system. We pay close attention to the policy
changes timely adjust and optimize the internal systems and measures to make sure that they always comply
with the latest regulatory requirements.We have established and improved the hierarchical environmental management organization to clarify the
responsibilities and authorities of each department. In 2024 Topband updated the Comprehensive Management
Manual to future refine the management organization and the responsibilities and authorities of each department.The President takes full charge of the Company's environmental management to ensure the efficient promotion
of the environmental management strategies from design to implementation; the President Office organizes
regular reviews of the environmental management system to identify the internal and external environmental
factors and the needs and expectations of the interested parties accurately evaluate the environment-related risks
and opportunities and formulate measures to address them; the Administration Department and Manufacturing
Center play a key role in promoting the Company's environmental performance from the construction of the
system production management emission monitoring and other aspects regularly carry out internal audit to
make sure that the system certification covers all operating sites and that the environmental management is
quantitative and controllable.Environmental Management Organization
of Topband
President
The first person in charge of environmental management
comprehensively assuming the responsibility for the
environmental protection work of the entire company
President Office
Administration
Manufacturing Center
Department
* Preside over the daily work of the Company's environmental * Regularly monitor the Company's pollutant emissions to ensure
management compliance with laws regulations and other requirements
* Prepare environmental protection management system documents * Strengthen production process control and bring the reduction in
and implement relevant laws and regulations and other policy the environmental impact of the production process into daily
documents management
* Establish and manage archives and ledgers
* Invite external agencies to monitor the Company's environmental
metrics
* Raise the employees' awareness of environmental protection
19Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
Topband makes clear environmental indicators and action plans every year based on its actual operations
relevant regulations and customer requirements with reference to policy guidance and best industry practices.The Company summarizes and evaluates the achievement of the annual environmental objectives at the end of
each fiscal year providing data support and decision-making basis for continuous improvement of environmental
management.During the Reporting Period Topband passed ISO14001 Environment Management System Certification
and QC080000 Hazardous Substance Process Management Certification; Huizhou Topband gained Five-Star
Rating on Green Supply Chain Assessment and green enterprise certification.Environment Management System Hazardous Substance Process Management
Certification (ISO 14001) Certification (QC 080000)
Topband Huizhou Topband Huizhou Topband
Topband Huizhou Topband Huizhou Topband
Hazardous Substance Hazardous Substance Certificate of Five-Star
Environment Management Environment Management Certificate of Green
Process Management Process Management Rating on Green Supply
System Certification System Certification Enterprise
Certification Certification Chain Assessment
The Company attaches great importance to environmental risk prevention and control and manages
environmental risks in a systematic and scientific manner. We have formulated internal system documents such
as the Environmental Analysis and Risk and Opportunity Control Procedure the Identification of Internal and
External Environmental Factors and the Risk and Opportunity Evaluation and Response Planning to fully
identify the internal and external environmental factors accurately assess the potential environmental risks and
opportunities and take countermeasures in a scientific manner.We have also formulated the Emergency Response Plan for Environment Emergencies and filed at the
environmental protection department in accordance with relevant regulations. The plan covers critical aspects
such as risk assessment emergency response process and post-event recovery to ensure that the Company can
respond quickly and efficiently in case of environmental emergencies to minimize the impact on the environment
and people. Besides we have conducted emergency drills on chemical and hazardous waste leakage every year
to continuously improve the emergency response capability for environmental emergencies. During the
Reporting Period no major environmental events occurred to the Company and no administrative penalties were
imposed on the Company for environmental management.Topband extends environmental management requirements to the supply chain to enhance the
environmental friendliness of the supply chain. We have formulated the Control Procedure for Environmental
and Safety Management of Interested Parties to specify the requirements for environmental and safety
management and encourage the interested parties to actively carry out environmental and safety management. By
signing the Agreement on Environment and Occupational Health and Safety of Interested Parties with Interested
Parties such as suppliers construction contractors logistics companies and recycling companies the Company
ensures that their activities comply with the laws regulations and standards thereby effectively managing the
supply chain environment and the occupational health and safety risks.The Company strengthens the suppliers' environmental management and integrates environmental
performance into the supplier audit. Environmental protection specialist positions are arranged and
material-based environmental records are maintained. The incoming materials of suppliers are tested on a regular
basis to ensure that the materials meet the environmental requirements. The Company on this basis actively
supports the environmental management needs of the clients and extends environmental responsibilities
throughout the whole chain from the upstream suppliers to the downstream customers. The Company's
component engineering department collaborates with the supply chain and the environmental protection
specialists of each business unit to investigate the use of harmful substances and conflict minerals in various
divisions and upload the relevant information to customer's environmental protection system to improve the
environmental management performance in the supply chain of customers.
20Topband ESG Report 2024
1.1.2 Green culture construction
Topband is committed to promoting the construction of green culture by creating a green office
environment and carrying out environmental protection training to integrate the green concept into daily
operations and raise the employees' awareness of environmental protection and enthusiasm making
environmental protection become an important part of the corporate culture.* Green office
Topband actively implements the concept of green office and optimizes the office environment to promote
the construction and development of green office culture. Paperless office was promoted to reduce paper
consumption; recycling of resources was strengthened to improve resource utilization; energy conservation
transformation was promoted to implement energy efficient lighting and air conditioning management; water
saving equipment were installed to reduce the waste of water resources; low-carbon travel was advocated to
encourage employees to commute in an environmentally-friendly manner.* Paper process exception forms and equipment maintenance records were replaced
with electronic ones;
Paperless office
* Hand towels at hand washing stations were removed and handkerchiefs were
distributed to employees.* A paper and plastic waste sorting station and waste clothing recycling bin were set
up;
* Recycling of computers was carried out to extend the service life;
Recycling of * Recycling of waste batteries was carried out to reduce environmental pollution;
resources * Recycling of office desks and chairs was carried out reduce waste of resources;
* A stationery sharing desk was set up to enable the cross-department circulation and
recycling of office supplies and production consumables that are still in their life
cycle as evaluated.* Traditional lamps were replaced with LED energy-saving lamps;
* A system for the use of centralized and independent air conditioners was
Energy conservation
developed with clear responsibilities and rules for switching on and off the air
conditioners.* Water-saving faucets toilets appliances and sensors were installed;
Water conservation * Bottled water was replaced with tea for receiving guests to reduce water waste
while effectively reducing the plastic waste from bottled water.* New energy vehicles replaced fuel vehicles as routine transportation vehicles and
Low-carbon travel commuter buses;
* Charging piles for new energy vehicles were installed in the park.
21Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
* Training for environmental protection
Topband carries out a variety of environmental protection training to effectively enhance the environmental
awareness and practical ability of employees. The Company has constructed a three-level (company workshop
and shift) training system to provide regular environmental protection training for new employees and
transferred employees. The training covers the basic knowledge of hazardous waste relevant laws regulations
and standards management systems and operating procedures of the Company the proper use and maintenance
of PPE/supplies and emergency rescue measures in case of an accident.In 2024 Topband organized a series of environmental protection training activities according to the actual
situation and needs of the Company. Shenzhen Topband carried out "Low-carbon Life" theme activities
including green travel bringing coffee cups sharing every saving tips and donating clothes to effectively
stimulate employees' enthusiasm for environmental protection; Ningbo Topband carried out ISO 14001
Environment Management System related training to strengthen the employees' understanding of environmental
management standards; Nantong Topband carried out training on waste sorting and hazardous waste disposal to
improve the employees' skills in environmental protection; Ninghui Topband carried out training on disposal of
hazardous waste and emergency drills on cleaning of hazardous waste warehouse and liquid waste leakage to
enhance the employees' ability to respond to environmental emergencies.Environmental Protection Training of Environmental Protection Training of Environmental Protection Training of
Ningbo Topband Nantong Topband Ninghui Topband
22Topband ESG Report 2024
1.2 Combat with Climate Change
Under the severe situation of global warming combating with climate change has become the common
responsibility of all mankind. Under this background Topband is exploring the "path to realize low-carbon
manufacturing". It put forward the climate action strategies and measures of "increasing energy efficiency +
increasing new energy" and "industrial carbon reduction + conservation for carbon reduction" and the strategic
goal of "creating carbon-neutral parks zero-carbon factories and green products" to actively contribute to global
climate governance."Two increases" - energy efficiency increase and "Two reductions" - industrial carbon reduction
new energy increase and conservation for carbon reduction
The first increase is to improve the energy Industrial carbon reduction refers to optimizing
efficiency. The Company accelerates product upgrade and upgrading the industrial structure. Topband invests
through low inventory and manufacturing in the layout of businesses including intelligent energy
collaboration and reduce carbon emissions in the and intelligent driving LiDAR technology platforms
production by improving process management including converter technology lithium battery
utilizing low-carbon raw materials and conducting technology and integrated control system and green
low-carbon treatment of high-carbon energy. operations including production automation industry
The second increase refers to developing automation and green transportation to optimize and
non-fossil energy including solar energy hydro upgrade the industrial structure.energy wind energy biogas hydrogen energy and Conservation for carbon reduction means
bioenergy. Topband takes PV as the main entry point developing low-carbon culture. Resource recycling
of utilizing non-fossil energy and has installed PV paperless office green business energy saving in
roofs in Shenzhen Huizhou and Ningbo Parks. office adoption of low-energy equipment and
energy-saving and water-saving equipment and the
increase of green plants within the Company are
promoted.
1.2.1 Greenhouse gas management
In accordance with the Guidance for Quantification and Reporting of the Organization's Greenhouse Gas
Emissions (SZDB/Z 69-2018) the Guidance for Verification of the Organization's Greenhouse Gas Emissions
(SZDB/Z 70-2018) the Technical Points for Carbon Emission Verification of Carbon Trading Controlled
Organizations in Shenzhen and the laws regulations and norms applicable to the places where the Company's
production bases are located the Company annually verifies the greenhouse gas emissions in Scope 1 and Scope
2 within the organizational boundary and reporting boundary and then employs a qualified third-party agency or
uses the qualified third-party agency employed by the government to verify the results. The greenhouse gas
involved in the verification is carbon dioxide.Paperless office 2022 2023 2024
Total emissions (tCO2e) - Shenzhen Plant 12064.00 13690.03 15421.36
Total emissions (tCO2e) - Huizhou Plant 34078.97 / 28123.96
Total greenhouse gas emissions (tCO2e) 46142.97 13690.03 43545.32
Scope 1: Direct emissions (tCO2e) 286.88 123.03 767.63
Scope 2: Indirect emissions (tCO2e) 45856.09 13567.00 42777.69
Note: The data covers all activities related to CO2 emissions in production areas office areas and living areas of Topband Shiyan Branch and
the wholly-owned subsidiaries registered in Shiyan Shenzhen and Huizhou Topband. The greenhouse gas emission data in 2024 is preliminary data
and the final data shall be subject to approval by the Bureau of Ecology and Environment.
23Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
Category Subcategory Emission source Emissions Quantitative methods and（tCO2e） formulas
Scope 1 Fuel Natural gas 154.77 Emission factor method:
Direct emissions combustion CO2 emissions from natural gas =
Emission factor * Natural gas
consumption * GWP value
Gasoline 0 -
Diesel 69.27 Emission factor method:
Diesel CO2 emissions = emission
factor * diesel consumption * GWP
value
Methane (CH4) 400.82 Emission factor method:
CO2 emissions from methane =
Emission factor * Methane
consumption * GWP value
WD-40 Anti-rust oil 0.02 Emission factor method:
(CO2) CO2 emissions = Emission factor *
Consumption * GWP value
HFC-227ea 133.85 Emission factor method:
CO2 emissions from HFC-227ea=
Emission factor * HFC-227ea
consumption * GWP value
Refrigeration plant 8.90 Emission factor method:
(Refrigerant R134a CO2 emissions from refrigerant =
R23 R32 R410 Emission factor * Refrigerant
R410a) consumption * GWP value
Scope 2 Outsourced Power/all electrical 42777.7 Emission factor method:
Indirect emissions electricity facilities CO2 emissions from outsourced
electricity = Outsourced electricity
consumed * Emission factor *
GWP value
Note: Emissions factors are from the appendix to Guidance for Quantification and Reporting of the Organization's Greenhouse Gas Emissions
(SZDB/Z 69-2018)
Topband focuses not only on the management of greenhouse gas emissions at the organizational level but
also on the quantification and control of product carbon footprint aiming to achieve refined management of
greenhouse gas management throughout the chain. The Company employs a qualified third-party agency to
conduct quantitative calculation assessment and verification of carbon emissions of some products over the half
life cycle in accordance with standards including the Greenhouse Gases - Carbon Footprint of Products -
Requirements and Guidelines for Quantification (ISO 14067:2018) the Greenhouse Gases - Carbon Footprint of
Products - Requirements and Guidelines for Quantification (GB/T 24067—2024) the Technical Requirements
for Carbon Footprint Assessment of Lithium Battery Cell (T/SQIA 059—2023) and Technical Requirements for
Carbon Footprint Assessment of Power Adapter (T/SQIA 091—2023). In 2024 the charging equipment was
certified as a green and low-carbon product and many products obtained the carbon footprint certification in the
Greater Bay Area such as the 30Ah LFP lithium-ion battery and energy storage battery management system.
24Topband ESG Report 2024
Case: Topband Carried Out Carbon Footprint Assessment of the Power Tool Controller Module
In recent years the EU has continuously raised the environmental protection requirements and issued
a series of directives related to sustainable development. In this context our international clients are
increasingly demanding carbon emission control. In 2024 in collaboration with the sustainability
department of the clients Topband investigated and assessed the carbon footprint of the power tool
controller module as planned. According to the results the carbon footprint of the product was
15.10kgCO2e 87% of which came from the stage of obtaining raw materials and 13% came from the stage
of manufacturing. The carbon footprint of the product was significantly better than the international
average.A1: Raw material acquisition
A2: Transportation
A3: Product manufacturing 13% A3: Product manufacturing
A2: Transportation 0% A1: Raw material acquisition 87%
Results of carbon footprint assessment of the power tool controller module
Energy storage battery Energy storage battery
Green and low-carbon certification of High-power lithium battery
management system management system
charging equipment adapter C750X BAU20C+BCU60M+BMU48P BAU20C+BCU60M+BMU52P
A number of Topband's products have obtained the carbon footprint certification in the
Greater Bay Area
By continuously improving the carbon accounting and strengthening the green supply chain management
Topband gradually carried out the carbon footprint assessment throughout the product life cycle. At present precise
control and continuous optimization of the carbon footprint of the Company's core "storage" and "charging"
low-carbon products are gradually realized. In 2024 six core products of the Company including the high-power
lithium battery adapter and energy storage battery management system obtained the carbon footprint certification in
the Greater Bay Area with the scope of certification covering the whole life cycle of the product from raw materials
purchasing manufacturing distribution to the end of the life cycle; the integrated DC charger obtained the green and
low-carbon certification. These certifications not only reflect the leading position of Topband in the field of green and
intelligent manufacturing but also provide strong support for Topband to explore the international market. In the
future the Company will continue to optimize the carbon footprint management of products and drive low-carbon
operations with technological innovation making contributions to the realization of the "carbon peaking and carbon
neutrality" goals.
25Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
1.2.2 Seizing climate opportunities
In recent years the active actions are taken at home and abroad to deal with the looming climate crisis. The
technology-driven greenhouse gas emission reduction and energy transition are regarded as a key path to achieve
carbon neutrality. In this context new energy application scenarios and demands continue to be expanded
bringing development opportunities for related enterprises.As a leading enterprise in the industry Topband actively grasp climate opportunities and regularly carries
out internal sharing. Specifically strategic departments and relevant organizations share industry trends and
standard updates related to climate change and integrate low-carbon and smart concepts into product
development and design. At the same time as a member of the Shenzhen Energy Storage Standardization
Committee Topband is actively involved in the development of new energy storage-related standards
contributing to the high-quality development of the industry.With advantages as an intelligent control enterprise the Company works together with downstream
customers in the field of home appliances and tools to build a sustainable industrial chain covering raw material
selection design production and other links for low-carbon and intelligent products. In the field of new energy
we cooperate closely with China Tower and other leading enterprises for a steady increase in the business scale;
we also supply high quality and high performance products to markets such as lightweight power batteries
industrial vehicle batteries and robotic batteries establishing a good reputation in the industry.In the future Topband is expected to develop cost-effective products build new business growth drivers
and achieve business development and environmental protection side by side by relying on close cooperation
with leading customers in home appliances tools new energy industrial control and other areas.Case: Topband Explores New Environmentally-friendly PCB Materials to Help E-Waste
Reduction and Sustainable Development
With the rapid upgrading of electronic products 50 million tons of electronic products are discarded each
year and only a small amount of them were recycled. Since the e-waste contains a large number of harmful
substances such as heavy metals like lead mercury and cadmium and organic pollutants like brominated flame
retardants random disposal or burning will cause serious harm to the environment and human health.As a leading printed circuit board assembly (PCBA) manufacturing enterprise in China Topband actively
responds to this challenge and explores the application of new environmentally friendly PCB (printed circuit
board) materials. Currently a new type of PCB material made of plant fiber non-toxic polymer and halogen-free
flame retardant has appeared on the market. When immersed in 90°C water for 30min the polymer dissolves and
the natural fibers can be decomposed for composting which means that 90% of the electronic components can
be recycled. Compared with the traditional glass fiber substrate (FR-4) the carbon footprint of the new material
is reduced from 17.7kg to 7.1kg. Now Topband is verifying the manufacturing process of this new material and
when the results are acceptable the Company will gradually use the new material to reduce carbon emissions
and environmental pollution.
26Topband ESG Report 2024
Case: Topband Developed the "Photovoltaic Power Generation Energy Storage and
Charging Cloud Platform" Micro-grid Project to Accelerate the Application of "Storage"
and "Charging"
Topband adheres to the core values of "Agility·Innovation·Partnership" build core capabilities based on the
customer needs and provide component and system solutions for smart energy customers with its core
technology - Cell Cloud Platform BMS PCS and EMS (1C1C3S). In January 2024 the first self-developed
"photovoltaic power generation energy storage and charging cloud" micro-grid demonstration station in
Huizhou Park was successfully delivered showing the Topband's strength in core products and integrated
solutions of "photovoltaic power generation energy storage and charging cloud" micro-grid and the confidence
of Topband in focusing "energy storage" and "charging" scenarios in the long run.In the context of global energy transition and low-carbon economy the concept of photovoltaic power
generation energy storage and charging solution has been rising day by day. The "photovoltaic power
generation energy storage and charging cloud" micro-grid project can effectively reduce energy costs and
improve energy utilization through intelligent control and optimization of energy allocation while providing
users with more stable and reliable power supply. This project has built a 240kW DC charging pile a 40kW DC
charging pipe eleven 7kW AC charging piles and two 100kW/215kWh energy storage integrated cabinets
according to the actual application scenarios and daily operation requirements of Huizhou Topband Industrial
Park. Besides we also completed the reconstruction of 15 parking spaces for the new energy vehicles in the
park.Signing of the Certificate of the "Photovoltaic Power
Aerial View of Topband's First Self-developed "Photovoltaic Power
Generation Energy Storage and Charging Cloud"
Generation Energy Storage and Charging Cloud" Micro-Grid Project
Micro-Grid Project
27Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
Case: Topband Grasps the "Carbon Peaking And Carbon Neutrality" Opportunities and
Focuses on the Innovation in the Field of Intelligent Energy and Intelligent Vehicle
Since it entered the new energy field in 2010 Topband has focused on "energy storage" and "new energy
vehicle" and accumulated core technologies consisting of Cell + Cloud Platform + BMS + PCS + EMS. It has
provided diversified product solutions including household energy storage industrial and commercial energy
storage portable energy storage and charging and control of new energy vehicles and conducted product
upgrade and technology development as scheduled to support the green transformation of customers by
marketization of advanced technologies.In 2024 Topband appeared at the third EESA Energy Storage Exhibition in Shanghai and showed its
technology and strength in the field of new energy with the "1C1C3S" core technology system. During the
exhibition Topband exhibited a new generation of intelligent and safe lithium battery system based on edge
cloud collaboration for the first time. This all-in-one system is compatible with a variety of protocols and can
achieve cloud monitoring online diagnosis and intelligent operation and maintenance. Topband also exhibited a
series of innovative products such as the configured edge cloud collaboration based energy management system
MEGA liquid-cooling solutions industrial and commercial photovoltaic power generation energy storage and
charging solutions household photovoltaic power generation energy storage and charging solutions and balcony
micro storage solutions. These products and solutions reflect Topband's deep technology accumulation in the
field of energy storage and show its extensive application capabilities in household industrial and commercial
and distributed energy storage scenarios. Topband consolidated its position as an innovation leader in the field of
new energy through this exhibition.New Generation of Edge-Cloud Collaboration-based Intelligent Topband's Configured Edge-Cloud Collaboration-based Energy
and Safe Lithium Battery System Management System
Remote monitoring Remote
monitoring
Cloud platform EMS Operation PV array Inverter Ammeter Power grid
platform
Mobile APP Mobile APP
380V AC busbar
PV module PV inverter
480 kW unit h Other loads (cameras
street lights...) Communication
Energy Standby Ordinary
Energy storage storage power load load
Public supply Transformer system battery
system
Industrial and Commercial Photovoltaic Power Generation Energy Storage and Charging Solution Household Energy Storage Solution
28Topband ESG Report 2024
1.3 Efficiently Use Resources
Topband was committed to achieving efficient and circular utilization of resources strengthening the
management of energy water resources and materials effectively reducing the waste of various resources
effectively cutting operating costs and improving its comprehensive competitiveness in the market.
1.3.1 Optimizing energy management
Topband strictly abided by the Energy Conservation Law of the People's Republic of China and other
national laws and regulations as well as applicable relevant laws regulations and policy documents of regions
where its global business is located and established and improved a series of internal energy management
systems such as the Measures for Assessment of Energy Target Management and the Energy Consumption
Management System for Microelectronics Workshop in order to effectively reduce energy consumption and
improve energy utilization efficiency through systematic energy management. Each branch and each subsidiary
formulated and implemented specific energy-saving measures and management regulations based on the
guidelines and system requirements of the headquarters as well as their own actual situation. Among others
Shenzhen Topband formulated the General Provisions of Regulations on Management of Environmental
Protection Energy Conservation and Emission Reduction the Regulations on Management of Environmental
Protection Energy Conservation and Emission Reduction and the System for Inspection of Environmental
Protection Energy Conservation and Emission Reduction; Ningbo Topband and Nantong Topband formulated
the System for Management of Energy-Saving Operation and the Regulations on Management of Energy-Saving
Use of Hydropower.Topband built an energy management architecture of corporate level and business unit level to ensure
effective implementation and supervision of energy management strategies at all levels. Each branch and each
subsidiary set up an energy leading group with the president of the branch or subsidiary as the group leader and
representatives from business units as group members to be responsible for leading the assessment of energy
targets and the special inspection of energy consumption. Each business unit set up a special energy management
group. The group leader is responsible for coordinating company-level energy management tasks and the
energy-saving work of departments; the representative of each department is responsible for the energy
management of the department covering energy-saving improvement in multiple aspects such as the production
department the quality department the engineering department and the warehouse; the energy-saving inspection
specialist is responsible for daily energy-saving inspection including floor energy consumption management and
monthly energy consumption inspection.Topband implemented an energy-saving target responsibility assessment and evaluation system to
effectively promote the achievement of its energy goals. In 2024 the Company formulated and implemented the
Measures for Assessment of Energy Target Management decomposed energy-saving targets issued by the
energy-saving department of the government or formulated within the Company to departments (workshops) and
working teams (working sections) level by level and assessed and evaluated the completion of energy-saving
targets. For departments with outstanding performance the Company commended and rewarded them; for
departments that failed to meet the standards the Company requested them to analyze the causes and submit a
rectification plan within a specified time to ensure continuous improvement.Topband steadily advanced basic energy-saving work in energy consumption statistics and analysis energy
measurement and energy audit. The Company fully utilized the data analysis function of the energy management
platform improved the list of high-power equipment monitored the operating status of equipment through
energy management cards and ensured accurate control of energy use. At the same time the Company actively
carried out energy waste inspection and accurately located and solved the energy waste problem through internal
energy consumption statistics. In addition the Company organized property audit and finance departments and
each business unit to conduct a special energy consumption inspection every month to comprehensively
investigate potential energy consumption problems; the internal energy management group of the business unit
took turns to conduct two special energy consumption inspections each month to ensure the implementation of
energy-saving measures.
29Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
Energy-saving
Achievement in 2024
indicator
Power consumption * The power consumption target for mature parks per RMB 10000 of output value was an annual
per RMB 10000 of decrease of 4%; the actual achievement was a decrease of 17.67% compared to 2023.output value Shenzhen Topband's power consumption per RMB 10000 of output value decreased by 12%
compared to 2023.Huizhou Topband's power consumption per RMB 10000 of output value decreased by 17.75%
compared to 2023.The remaining parks under production expansion were not assessed temporarily as they were in
the stage of increasing output value.Optimization of * Enhancement of control of equipment power consumption: The control of air conditioning
control measures temperature and lighting was optimized air conditioning temperature in the office area was set to not
lower than 25°C strictly as required and the lighting system in workshops and offices was finely
managed; the use and shutdown process of key high-power equipment was standardized to avoid
power waste caused by the long-term idling or standing-by of equipment.* Optimization of production process and equipment configuration: By optimizing the production
process three high-frequency machines for a certain product were merged into one effectively
reducing the number of machines used. According to the calculation up to 105000 kWh of electricity
can be saved every year by optimizing the equipment configuration.* Application of intelligent control system: Intelligent control technology was introduced to
achieve fine management of humidity and temperature in production and office spaces;
air-conditioning terminals in workshops realized intelligent control remote monitoring and operation
were supported and energy utilization efficiency was further optimized.Equipment renewal * Upgrading of equipment in living and office areas: A central drinking water filtration system
and modernization was used for water dispensers in staff dormitories high-energy-consumption equipment was phased
out and equipment with first-class energy efficiency was used instead; the lighting system in the office
area was optimized for energy saving and floor lighting was reduced under the condition that the
illuminance met production needs.* Optimization of workshop equipment and ventilation system: Smoke purifiers were used to
replace inefficient exhausting systems separate control valves were added for soldering smoke
purification and cold air loss was reduced; air curtains were installed at the exit of workshops and
thermal insulation paper was installed on glass doors and windows to reduce cold air loss and heat
transfer; the exhausting system was changed to a combination of timer and automatic
variable-frequency control to further reduce energy consumption.* Modification of heating equipment and thermal insulation: For all newly purchased heating
equipment thermal insulation structure was added as required to reduce the loss of heat energy of
equipment and improve the refrigeration effect of air conditioning; for purchased old heating
equipment such as wave soldering equipment reflow soldering equipment tunnel furnaces and ovens
simple thermal insulation treatment was carried out to reduce heat conduction and save air
conditioning costs.Energy recovery * Waste heat recovery: Ningbo Topband converted the high-temperature waste heat generated
during the operation of the air compressor into hot water resources by an installed waste heat recovery
device and the recovered hot water was used for the supply of domestic hot water for employees.* Condensate recovery: Nantong Topband recovered the waste heat of steam condensate to
provide hot water for dormitory production staff achieving efficient conversion and reuse of energy.Use of renewable * Construction of "photovoltaic power generation + energy storage" green park: Solar panels were
energy installed on the roof of production workshops to provide green energy support for the park's production
and operations. The capacity of Shenzhen Topband's self-built photovoltaic power station was
240kWp. In 2024 the photovoltaic power output was 261600kWh and for its own use only. The
capacity of Huizhou Topband's self-built photovoltaic power station was 1354kWp. In 2024 the
photovoltaic power output was 1384420kWh the residual electricity fed into the grid was
13320kWh and the photovoltaic power output accounted for about 2.5% of the annual power
consumption. The capacity of Ningbo Topband's self-built photovoltaic power station was
1479.089kWp. In 2024 the photovoltaic power output was 1423636.2kWh the residual electricity
fed into the grid was 101520kWh the self-use power consumption was 1322116.2kWh and the
photovoltaic power output accounted for about 19.62% of the park's power consumption.
30Topband ESG Report 2024
Indicator Unit 2022 2023 2024
Annual total energy consumption MWh 91938.48 100971.70 129865.79
Renewable energy power generation MWh 460.74 2239.00 4311.47
Natural gas m3 98235.00 215907.00 141846.00
Power consumption MWh 90642.64 80764.60 127207.85
Outsourced electricity kWh 74076.96 96573.63 122997.90
1.3.2 Strengthening water-saving management
Topband complied with domestic laws and regulations such as the Water Law of the People's Republic of
China and the Regulations on Water Conservation as well as applicable regulations in other regions where its
global business is located and was committed to the scientific management and efficient utilization of water
resources. The Company ran the water-saving concept through the entire production and operation process and
improved the efficiency of water resource utilization and reduced water waste through a series of water-saving
measures such as implementing water use monitoring and inspection promoting sensor faucets and posting
water-saving signs.Water use * The water consumption data was analyzed based on monthly meter reading records the causes
monitoring of water consumption differences were accurately located and they were handled in time.Water-saving facilities including faucet water savers water-saving showers and sensor faucets
were regularly inspected and maintained and water leaks were repaired in a timely manner.Equipment * Water-saving showers or sensor faucets were used in the park to reduce the waste of water
upgrading resources which is expected to save about 4000 cubic meters of water every year under ideal
conditions.A central drinking water filtration system was used for water dispensers in dormitories to achieve
water-saving and electricity-saving effects which is expected to save about 8500 kilowatt hours of
electricity and 450 cubic meters of water per year.Circular utilization * Ninghui Topband's production project was equipped with three circulating cooling towers to
of water realize the circular utilization of cooling water.Water-saving * In the park water-saving publicity activities were widely carried out and water-saving signs
publicity were posted to create a strong water-saving atmosphere.Indicator Unit 2022 2023 2024
Total water consumption m3 340000 516327 627918
Decrease in water consumption % - - 4.85
per RMB 10000 of output value
31Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
1.3.3 Promoting circular economy
In the context of China's vigorous promotion of the development of the circular economy Topband actively
responded to policy calls and deeply integrated resource recycling awareness into the lifecycle management of
products. The Company followed the circular economy principles of "reduction reuse and resource utilization"
and was committed to reducing environmental pollution and improving resource utilization efficiency through
measures such as optimizing product design and development using environmentally friendly materials and
promoting packaging improvement actions thus contributing to the realization of the national circular economy
development goals in the 14th Five-Year Plan.* Green design
Topband was committed to building a sound green design and development management system
formulated a series of internal system documents such as the Design and Development Management Control
Procedure the Packaging Design Specification Management Control Document and the Microelectronics
Scrapping Management System and formed a cross-departmental development team including environmental
protection specialists in order to ensure that resource waste and environmental pollution were reduced from the
source. From the stage of demand collection we identified and integrated the requirements of environmental
protection and safety specifications ran them through the whole process of product design process design and
packaging design and transferred them to the supply chain synchronously to promote the green transformation
of the whole chain.In the product design stage Topband fully considered the charging and discharging efficiency cycle life and
environmental protection factors of batteries and adopted an advanced battery management system to optimize
the use of batteries and reduce waste and unnecessary replacement. At the same time the system design paid
attention to improving energy efficiency and reducing greenhouse gas emissions during product use. In the
selection of raw materials we fully considered environmental protection requirements gave priority to non-toxic
harmless recyclable or biodegradable materials and avoided using materials containing harmful substances.During the coding and project approval process environmental protection specialists reviewed the environmental
protection information provided by suppliers and strictly controlled the environmental compliance of raw
materials. The Company also produced recycled lithium products by recycling and reusing materials from
lithium-ion batteries thus improving the resource utilization efficiency and reducing the dependence on virgin
mineral resources.* Green production
Topband ensured the environmental protection and sustainability of the production process through
technological innovation and fine management. The Company strictly controlled the production process adopted
environmentally friendly and energy-saving production technology and comprehensively considered factors
such as product realization customer requirements production capacity quality and cost. For products with few
solder joints it gave priority to relatively energy-saving processes such as butt welding laser welding reflow
soldering and soldering machines to replace traditional wave soldering processes thus effectively reducing
energy consumption and pollutant emissions. In addition the Company established a strict mechanism of phased
review and conducted detailed assessment of each key milestone in product development to ensure that all
requirements were fully met. In terms of manufacturing process monitoring high-risk processes were accurately
identified and monitored to ensure a pollution-free production process. For example a solder composition test
was conducted for the wave soldering process every week and the process inspector (IPQC) conducted
inspection and confirmed whether test results met environmental protection requirements.* Green packaging
Topband incorporated the concept of sustainability into packaging design and specified environmental
requirements for packaging materials in packaging design specifications. In the selection of packaging materials
we gave priority to materials with low environmental pollution to ensure that the content of hazardous
substances in packaging materials met RoHS and REACH standards. In packaging design we used less materials
according to the principle of maximizing space utilization and communicated with customers to use recyclable
and sustainable packaging methods for shipment such as blister materials and recyclable turnover boxes. During
the Reporting Period the Company carried out several actions to improve recyclable packaging and continued to
promote the implementation of green packaging.
32Topband ESG Report 2024
33Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
Case: Green transformation from partition and bubble bag to blister packaging
In 2024 the Company actively promoted the improvement of packaging to address the inefficiency and
insufficient environmental protection of the traditional packaging method. Previously the Company adopted the
packaging method of partition + bubble bag which not only resulted in low packaging efficiency but also made
it impossible to recycle partitions and bubble bags after product delivery leading to resource waste and increased
costs.In order to improve packaging efficiency meet environmental protection requirements and reduce
manufacturing costs the Company decided to change partition and bubble bag packaging to blister packaging.After rigorous prototype verification to ensure the reliability and applicability of the new packaging method the
solution was fully promoted to all products whose change was approved by domestic customers. The
improvement significantly improved packaging operation efficiency and reduced packaging material costs. At
the same time the recyclability of blister packaging materials reduced the generation of waste alleviated the
impact on the environment and achieved a win-win situation of economic and environmental protection
benefits.Partition + bubble bag packaging before improvement Blister packaging after improvement
* Waste recycling
Topband focused on the environmental impact management of products at the end of their lifecycle
covering key links such as product recycling and scrapping. We collected solid wastes such as copper foil
separately and handed them over to qualified manufacturers for standardized recycling to ensure efficient reuse
of resources and environmental safety. In 2024 the Company collected and resold wastes such as component
pins miscellaneous wires steel mesh plastic aluminum alloy and lamp bases with the total resale income for
the whole year reaching RMB 118105.In terms of overseas business Topband also adhered to the principle of being responsible for the entire
lifecycle of products and actively fulfilled its corporate environmental responsibilities. During the Reporting
Period Romania Topband followed relevant local laws and set and achieved the goal of recycling 75% of paper
packaging 50% of plastic packaging and 25% of wooden packaging; Vietnam Topband also actively responded
to local environmental protection policies set the goal of handing over 100% of waste to qualified companies for
recycling and successfully achieved it.
34Topband ESG Report 2024
1.4 Protect Ecological Environment
Topband attached great importance to pollution prevention and control and ecological protection and
actively practiced the concept of green development. We strictly controlled wastewater waste gas and wastes to
ensure their up-to-standard discharge and standardized treatment; we strengthened chemical management to
ensure safe use; and we prevented noise pollution and reduced its impact on surrounding areas.
1.4.1 Management of three wastes
Through the scientific and standardized management of three wastes Topband effectively controlled the
environmental impact of wastewater waste gas and solid waste generated in the production process ensured
their up-to-standard discharge and standardized treatment and earnestly fulfilled its corporate environmental
protection responsibilities.* Management of wastewater discharge
Topband formulated internal systems such as the Emergency Control Procedures for Nonconforming
Discharge of Wastewater from Wastewater Treatment Plants and the Management Guidelines for Wastewater
Discharge Exhaust Emissions and Noise in accordance with the Emission Limits of Water Pollutants (DB
44/26-2001) the Integrated Wastewater Discharge Standard (GB 8978-1996) the Wastewater Quality Standards
for Discharge into Municipal Sewers (GB/T 31962-2015) and applicable regulations in other regions where its
global business is located.Topband strictly monitored a number of key indicators in wastewater including pH value suspended solids
chemical oxygen demand (COD) ammonia nitrogen total phosphorus total nitrogen and animal and vegetable
oils. We implemented a classification-based treatment strategy for wastewater and prohibited the mixing of
industrial wastewater with domestic wastewater for treatment. Domestic wastewater flew into municipal
pipelines and was discharged into the urban domestic wastewater treatment plant for centralized treatment. In
addition the Company arranged for a qualified organization to conduct domestic wastewater discharge indicator
testing at least once a year to ensure that the wastewater was discharged as per standards.Domestic wastewater Industrial wastewater
It mainly involves toilet wastewater. It is discharged into the It is treated by a qualified third-party hazardous waste treatment
municipal pipeline network through the existing drainage pipes agency for zero discharge of industrial wastewater. Nantong
in the parks for treatment in the municipal wastewater treatment Topband and Ninghui Topband built a special wastewater
plant. Kitchen wastewater was filtered and discharged into the treatment station for production wastewater to detect daily
drainage pipeline of the industrial park. Nantong Topband and drainage data in real time and connect to the online monitoring
Ninghui Topband built a domestic wastewater treatment station system of the Environmental Protection Bureau in real time.to treat domestic wastewater within the plant area to reduce the
impact of domestic wastewater on the municipal wastewater
treatment system.Topband's diverse wastewater management measures
Management of * Strictly implement the separation of rainwater and wastewater and strictly separate wastewater
pipelines from rainwater pipelines;
rainwater
* New construction reconstruction and expansion projects need to be equipped with rainwater
discharge drainage facilities to prevent untreated wastewater from being discharged into rainwater pipelines;
* The Company's Administration Department organizes regular inspection of rainwater pipelines to
ensure the normal operation of the drainage system;
* The Company's Administration Department regularly contacts a qualified organization to inspect
rainwater discharge at least once a year. If the inspection results do not meet the limits specified for
environmental impact assessment the Administration Department is responsible for identifying the
causes and making improvements until the standards are met.
35Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
Topband's diverse wastewater management measures
Standardization of * The canteen grease trap is regularly cleaned and a filter is provided at the wastewater outlet to
prevent oily wastewater from being discharged directly into the sewer without treatment;
wastewater
* It is prohibited to store garbage in the open air. Garbage shall be collected at designated locations
treatment to prevent wastewater from flowing into rainwater pipelines;
* It is prohibited to wash vehicles in the Company to prevent oil stains from flowing into rainwater
or wastewater pipelines;
* The oil and chemicals dripping on the floor shall be wiped up with a rag and it is forbidden to
flush them with water into the sewer;
* The wastewater generated by screen cleaning machines and cleaning equipment and tools shall be
collected and handed over to a qualified environmental protection company for treatment.Actual performance Achievement of
Environmental objective for 2024
in 2024 objectives for 2024
The wastewater discharge compliance rate is 100% without 100% Achieved
illegal unauthorized or accidental discharge of wastewater.Note: Target entities include Shenzhen Topband Huizhou Topband Ningbo Topband Nantong Topband Ninghui Topband Topband Vietnam
Topband India Topband Mexico and Topband Romania.* Exhaust emission management
Topband strictly abided by the Environmental Protection Law of the People's Republic of China the Law of
the People's Republic of China on the Prevention and Control of Atmospheric Pollution and relevant laws and
regulations in places where its factories are located and formulated internal systems such as the Management
Regulations for Exhaust Emissions and the Control and Management Guidelines for Wastewater Discharge
Exhaust Emissions and Noise in accordance with the Integrated Emission Standard of Air Pollutants (GB
16297-1996) the Integrated Emission Standard of Volatile Organic Compounds for Stationary Pollution Sources
(DB 442367-2022) (Guangdong) the Emission Limits of Air Pollutants (DB 4427-2001) (Guangdong) the
Ambient Air Quality Standards (GB 3095-2012) the Emission Standards of Pollutants for Battery Industry (GB
30484-2013) and other standards and specifications laying the system foundation of hazard-free exhaust
treatment.Waste gas pollutants involved in Topband's production and operation process mainly include volatile
organic compounds (VOCs) non-methane total hydrocarbon concentration particulate matter and canteen
fumes. In view of these different types of pollutants the Company adopted a variety of treatment strategies based
on their characteristics to ensure that waste gas emissions met standards.Supporting * Equipment with large waste gas emissions and great environmental impact shall be provided with
exhaust gas treatment devices to ensure that waste gas emissions meet the requirements of laws and
facilities for waste
regulations;
gas treatment * All departments are required to take waste gas into consideration during project construction
equipment reconstruction and expansion and install waste gas collection devices for pollution-producing equipment
and facilities;
* When the waste gas generating equipment is working the waste gas collection device must be
turned on and direct discharge of waste gas is prohibited;
* The waste gas generated at the production site is collected by the exhaust fan at the work site and
then discharged after being adsorbed by activated carbon in the waste gas treatment device on the roof of
the factory building.
36Topband ESG Report 2024
Monitoring and * The monitoring/measurement organization is a qualified external organization. The Lithium
Battery Business Unit hires an external testing organization with national accreditation
management of waste
qualifications at least twice a year to conduct monitoring;
gas * The results of monitoring/measurement data are summarized to the Company's
Administration Department which fills in and publishes the monitoring data on the national
pollution source platform takes corrective measures for nonconforming phenomena and tracks
and manages them.Daily operation and * Spot checks are conducted on environmental protection equipment on time and the
activated carbon inside the environmental protection equipment used to absorb waste gas
maintenance and
pollutants is regularly replaced;
employee education * The domestic waste gas generated in the Company's canteen is purified by the kitchen air
purifier before being discharged;
* Annual inspection is conducted on the Company's all vehicles to ensure that exhaust
emissions meet legal and regulatory requirements;
* The education of employees is strengthened and the awareness of waste gas emission
reduction is raised.Actual performance Achievement of
Environmental objective for 2024
in 2024 objectives for 2024
The waste gas discharge compliance rate is 100% without
100% Achieved
illegal unauthorized or accidental discharge of waste gas.Note: Target entities include Huizhou Topband Shenzhen Topband Ningbo Topband Nantong Topband Ninghui Topband Topband Vietnam
Topband India Topband Mexico and Topband Romania.Case: Enhancement of waste gas treatment in Topband's parks
Shenzhen Topband: Main pollutants in waste gas are VOCs and regular testing is carried out every year to
ensure that emissions meet standards. The production waste gas treatment facilities and production equipment
were equipped with working condition monitoring instruments with real-time monitoring simultaneously
enabled to prevent the emission of untreated waste gas. In 2024 a set of waste gas treatment facilities were
added and the existing facilities were upgraded to improve treatment efficiency.Huizhou Topband: Environmental protection facilities were set up according to environmental impact
assessment requirements activated carbon adsorption treatment was used for VOCs and particulate matter and
the process of spray adsorption + activated carbon adsorption was used for acid mist in order to further improve
the waste gas treatment process.Nantong Topband: For the fugitive emission of particulate matter the main method adopted is to add dust
collection devices. By centralized collection the external emission of particulate matter was reduced and the
diffusion of particulate matter was effectively controlled.Ninghui Topband: Main pollutants in waste gas are particulate matter and non-methane total
hydrocarbons. In 2024 a total of 8 exhaust stacks were installed and measures such as "bag dust removal +
activated carbon adsorption" were taken respectively to ensure up-to-standard waste gas emission after effective
treatment.
37Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
* Waste management
Topband strictly abided by the Law of the People's Republic of China on Prevention and Control of
Environmental Pollution by Solid Waste the National Catalogue of Hazardous Wastes and other applicable laws
regulations and policy documents in regions where its global business is located and formulated waste
management systems such as the Waste Management System the Environmentally Hazardous Waste
Management System and the Hazardous Waste Management Regulations.Topband was committed to reducing the generation of waste from the source. It introduced eco-friendly
materials by upgrading production and technology and adopted advanced technologies such as activated carbon
adsorption laser welding and wash-free cast welding machines so as to effectively reduce the waste generation
rate. The Company's property management department is responsible for classifying and removing various types
of garbage and ensuring that special wastes (such as lamp tubes and batteries) and general wastes are separated
and separately handed over to professional waste treatment stations for recycling so as to achieve standardized
waste management. For hazardous waste the Company strictly followed the hazardous waste disposal process
collected them in a centralized manner and then handed them over to qualified third-party professional
organizations for treatment; it commissioned general industrial solid waste to qualified manufacturers for
harmless recycling.Disposal of * For the storage utilization and transportation of hazardous waste the Company has established a
hazardous waste record management system and arranged personnel to maintain the data on the
hazardous waste
hazardous waste management platform fully understanding the types and quantities of hazardous waste.* During the collection storage utilization and transfer of hazardous waste the Company set up
accurate obvious and eye-catching warning signs and signboards in accordance with the requirements of
national standards and classified hazardous waste strictly according to its characteristics.* The Company set up a special warehouse for the transfer of hazardous waste which is managed
and monitored in real time by specialized personnel. The hazardous waste at the end of its life cycle was
handed over to a qualified supplier for decomposition and sorting every week to every 10 days.* The corresponding joint records of hazardous waste handling were properly kept to ensure that the
quantity and types of hazardous waste handled were in accordance with those of the hazardous waste
actually generated and stored.Actual performance Achievement of
Environmental objective for 2024
in 2024 objectives for 2024
The hazardous waste treatment rate reaches 100%
100% Achieved
without illegal unauthorized or accidental discharge.General solid waste is disposed of in compliance with
regulations to ensure that there is no illegal unauthorized No violation of the law Achieved
or accidental discharge.Note: Target entities include Shenzhen Topband Huizhou Topband Ningbo Topband Nantong Topband Ninghui Topband Topband Vietnam
Topband India Topband Mexico and Topband Romania.Indicator Unit 2022 2023 2024
Total weight of hazardous waste disposed MT 815.466 933.45 938.78
Total weight of non-hazardous waste disposed MT 402.85 1825.00 2204.71
38Topband ESG Report 2024
Case: Nantong Topband conducted training on hazardous waste management
In 2024 Nantong Topband conducted systematic training of employees in relevant positions on the types
treatment processes and potential hazards of hazardous wastes. Through the training employees fully mastered
the key points of hazardous waste management improved their environmental awareness and operational
standardization and provided strong support for the Company's standardized management of hazardous waste.Nantong Topband's Training on Hazardous Waste Management
1.4.2 Management of chemicals
Topband strictly abided by the Regulations on Safety Management of Hazardous Chemicals the
Regulations on Management of Monitored Chemicals and relevant laws and regulations in places where its
factories are located and formulated documents such as the System for Management of Chemicals the
Specifications for Introduction and Management of Chemicals and the Procedure for Safety Management of
Hazardous Chemicals to specify the full-process management requirements for chemicals from procurement
storage and use to disposal and ensure the standardization and institutionalization of chemical safety
management. In 2024 the Company updated and revised the Procedure for Safety Management of Hazardous
Chemicals with signage requirements for hazardous chemicals and fire prevention added to further strengthen
the management of the Company's purchase storage and use of hazardous chemicals and prevent disasters and
accidents such as fire explosion and environmental pollution.The Company constantly standardized the lifecycle management of chemicals and was committed to
eliminating the risk of chemical leakage and reducing potential threats to the environment and safety. At the
same time we actively applied chemical recovery technology to promote the recycling of solvents save solvent
resources and reduce the potential environmental impact of solvent discharge. For example advanced solvent
evaporation liquid-cooling recycling technology was adopted for the NMP solvent to realize a recovery rate of
over 90% for the cathode paste solvent.Purchase * All departments shall try to replace hazardous chemicals with non-hazardous
chemicals in production processes or daily use;
* All containers of hazardous chemicals entering the Company shall be labeled
with the name of hazardous chemicals contained potential hazards etc. The label text
must be easy-to-understand symbols or text and the signs of hazardous materials or fire
prevention are not allowed to be blocked.
39Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
Storage * Hazardous chemicals must be stored in special warehouses special places or
special storage cabinets and managed by specially assigned personnel;
* Places where hazardous chemicals are stored must be equipped with firefighting
facilities and lightning protection facilities;
* Hazardous chemicals in large quantities or with a long period of storage must be
placed in hazardous chemical warehouses. Departments may store small quantities of
hazardous chemicals in temporary warehouses but the storage volume must not exceed
three days' usage.* Cofferdam facilities are set up in the chemical storage tank area and a special
pollutant discharge pool is installed in the hazardous chemical warehouse to ensure that
chemical reagents leaked during the storage process can be effectively intercepted and
collected to prevent their outflow and environmental pollution.Use * Chemicals are collected by the material clerk from the Company's chemical
station according to actual production needs and stored in the workshop's chemical
warehouse. The production line actually collects chemicals based on the work order
usage and completes warehouse-in and warehouse-out registration;
* Emergency flushing equipment is installed in all places where hazardous
chemicals are used and showers are installed in areas where corrosive and toxic
chemicals are used;
* Used waste shall not be dumped at will but be properly stored in special
containers and recovered by designated cooperative organizations.Emergency response * An emergency drill for hazardous chemical leakage is conducted once a year to
enhance employees' emergency response capabilities in the event of emergency leakage
of hazardous chemicals;
* Operators are regularly trained and assessed to ensure that they have necessary
safety knowledge and skills;
* Emergency response plans for work safety accidents are established including
on-site disposal plans for hazardous chemical leakage accidents;
* Regular safety inspections and assessments are conducted at chemical storage and
use sites to timely identify and eliminate safety hazards;
* Safety protection articles and facilities such as protective gloves protective
masks leak-proof tanks and eyewash stations are provided.Environmental objective for 2024 Actual performance in 2024 Achievement of objectives for 2024
0 chemical leakage accidents. 0 Achieved
Note: Target entities include Shenzhen Topband Huizhou Topband Ningbo Topband Nantong Topband Ninghui Topband Topband Vietnam
Topband India Topband Mexico and Topband Romania.
40Topband ESG Report 2024
1.4.3 Management of noise pollution
Topband followed relevant standards such as the Emission Standard for Industrial Enterprises Noise at
Boundary (GB 12348-2008) formulated internal management systems such as the Measures for Management of
Noise Control the Control and Management Guidelines for Wastewater Discharge Exhaust Emissions and Noise
and the Control Procedure for Environmental and Safe Operation and set management objectives for
up-to-standard emission of noise at the boundary to effectively prevent noise pollution. The Company organizes
at least once a year the monitoring of the noise emission and hires external testing agencies with nationally
recognized qualifications to carry out the monitoring to ensure that the noise at boundary is acceptable. In 2024
the Company formulated an annual noise testing plan and conducted noise testing every quarter to ensure that
test values were within the standard range.The Company made reasonable arrangements for noise pollution sources and took effective isolation
anti-vibration and noise reduction measures for key noise sources. We gave priority to installing sound insulation
devices in workstations with high noise level. For example ultrasonic welding machines were equipped with a
semi-closed soundproof housing and sound-absorbing cotton was installed inside the soundproof housing to
further reduce noise transmission. In addition we provided protective resources for all employees in noisy areas
and distributed noise-proof headphones to all employees at noise-generating workstations to ensure their hearing
health.Environmental objective for 2024 Achievement of objectives for 2024
The emission compliance rate of noise at the boundary is 100% Achieved
without illegal unauthorized or accidental emissions of noise.Note: Target entities include Shenzhen Topband Huizhou Topband Ningbo Topband Nantong Topband Ninghui Topband Topband Vietnam
Topband India Topband Mexico and Topband Romania.
41Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
Innovation Navigates
Compassion Accompanies
Driven by technological innovation all along Topband is committed to the field of intelligent control
actively develops efficient and low-carbon downstream application scenarios to provide innovative and
sustainable solutions for customers and ensures reliable delivery of products through strict implementation of
the quality management system. While fulfilling its business mission the Company adheres to the
people-oriented approach builds an inclusive organizational culture and continues to enhance employees' sense
of well-being and belonging through career development support health management mechanisms and
humanistic care initiatives.
42Topband ESG Report 2024
2.1 Be Original in R&D to Pursue Excellent Quality
Topband regards R&D and innovation as the core driving force for industry progress continues to increase
investments in R&D and accelerates the independent development and iterative upgrading of core technologies
by building an open and collaborative innovation platform. With the goal of "zero defects" the Company has
built a quality management system covering the whole life cycle of products to ensure the highest standards are
met in each process.
2.1.1 Promotion of R&D and innovation
Based on the corporate values of "adhering to the value of technology constantly making progress and
pursuing excellence" Topband has built a full-chain R&D system covering basic researches application
development and cutting-edge researches. The Company has set up a number of specialized research
departments and promotes brainstorming among researchers in different fields to stimulate the innovation
vitality through interdisciplinary collaboration mechanisms. The Company also actively integrates external
resources by establishing strategic cooperation relations with universities scientific research institutions and
industrial chain partners to create a collaborative innovation ecology for production university research and
application.In terms of the construction of the R&D management system the Company has established a product
development system with customer value as the core through the Integrated Product Development (IPD) model
and built an efficient and agile collaborative innovation mechanism through the three-dimensional collaboration
of demand sensing process collaboration and integrated development which have significantly improved the
innovation efficiency of product development the response speed to the market and the business conversion
efficiency.To ensure the R&D efficiency the Company has established a sound R&D management system covering
the whole process of product planning project management R&D testing and results conversion. The Company
has also formulated the Innovation and Incentive System to encourage continuous improvement and
breakthrough innovation by employees through a target-oriented reward mechanism and to create a technical
and cultural atmosphere of full participation openness and sharing.Front office-Middle office-Back office Three-tier R&D Organization Structure
Front office A closely coordinated "iron triangle" formed by managers with solution
responsibility (SR) accountant responsibility (AR) and fulfillment responsibility (FR) of
each business unit (BU) to directly contact the market and customers.Middle office Composed of R&D centers of each business group (BG) to provide specialized
product and technical platforms.Back office Composed of the central research institute to make preparatory development and
reserves for common and core technologies required by future products and markets
according to the strategies and product planning of the Company BGs and BUs.Indicator Unit 2024
R&D personnel Person 2178
Proportion of R&D personnel % 18.75
R&D investment RMB ten thousand 95210.53
Proportion of R&D input % 9.07
43Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
In addition as a member of the National Technical Committee on Household Automatic Controller of
Standardization Administration of China the KNX Standard Home and Building Control System USB IF the
WiFi Alliance and the Wireless Power Consortium (WPC) Topband continues to output its own technical
experiences and innovation results and actively participates in the development and promotion of industry
standards. In 2024 Topband participated in the formulation and revision of 11 national industry and group
standards and four of the standards have been issued including the Electromagnetic Compatibility
Requirements for Home Appliances Power Tools and Similar Apparatus - Part 1: Emission (GB 4343.1-2024)
the Over-the-Air (OTA) Technical Requirements of Automatic Electric Controls for Household and Similar Use
(GB/T 43964-2024) the General Safety Technical Requirements for Intelligent Speech Control (GB/T
43969-2024) the Household and Similar Refrigerating Appliances Computer Program Controls (GB/T
43689-2024) and has continuously promoted the development of normalization and standardization of the
industry improved the overall technical level and product quality of the industry and promoted the coordinated
progress of the upstream and downstream industrial chains.A Member of the National Technical Committee on Household Automatic Controller of Standardization Administration of China
Major Technological Breakthroughs and Industrial Applications
Cutting-edge power semiconductor technology in BMS technology innovation leading the energy
the world storage safety
The Research and Industrial Application of Highly The battery management system (BMS) independently
Integrated Intelligent Power Semiconductor Chips developed by Topband adopts advanced algorithms
and System Project which the R&D team of and dynamic control strategies to achieve real-time
Topband Electric HVAC Business Unit participated monitoring and optimal management of battery status
in has reached the "international leading" level and has been widely applied in the fields of energy
according to authoritative appraisal as the project storage system backup power battery replacement
can significantly improve the energy utilization and portable equipment. With its technological
efficiency and provide core technical support for advantages the Company won the 2024 Best Energy
fields such as intelligent home appliances industrial Storage BMS Supplier Award demonstrating its
control etc. market competitiveness.Scientific and Technological Achievements Evaluation Certificate 2024 Best Energy Storage BMS Supplier Award
44Topband ESG Report 2024
Green technological innovation and low-carbon practices
Strategic cooperation on new energy
Topband and the People's Government of Bao'an District Shenzhen entered into a strategic cooperation
framework agreement targeting carbon peaking and carbon neutrality and focusing on core fields such as
integration of PV power generation system energy storage equipment and charging station low-carbon park
construction and energy digital twin to promote the new energy industry agglomeration and the energy structure
transformation.Technological breakthrough for fuel-to-power transformation
Topband is working with Hunan University in the cooperation project of Motor Controller on Electric
Forklifts to jointly develop motor controllers suitable for various types of electric forklifts to provide technical
and product support for the fuel-to-power transformation of industrial machinery. It is expected that after the
completion of the project electric forklifts installed with the controller can save more than 80% of standard coal
consumption and reduce pollutant emissions to 10% assisting the low-carbon transformation of the construction
machinery industry.Green upgrading of power tools
Based on market demands Topband has independently developed and launched products such as
battery-powered portable threading machine air pump etc. as well as mechanical-electrical integration solutions
to reduce the dependence of traditional tools on fossil energy.
2.1.2 Protection of intellectual property rights
Topband has always taken scientific and technological innovation as the core driving force to promote the
transformation of technological achievements and the improvement of product competitiveness through a sound
intellectual property management system and patent operation system and has built a whole-process risk
prevention and control mechanism to guarantee the business security and sustainable development. The
Company has built a patent management platform to realize the digital management of the entire intellectual
property process covering the whole process from patent application examination authorization to maintenance
to ensure the traceability and information transparency of the process. With this platform the Company can
achieve efficient assignment of a process to external agencies with real-time information exchange which
greatly improves the collaboration and efficiency of patent management. In the meantime inventors can view the
application progress in real time obtain the official notice and handle affairs at the earliest time possible on the
platform to ensure the smooth progress of patent application.For new products Topband has established a three-level risk prevention and control mechanism of
prevention-monitoring-response to ensure the compliance and security of business. At the project application
stage of new products the Company searches and identifies potential infringement risks and discusses and
formulates avoidance plans or countermeasures with the R&D team to reduce the Company's risk of patent
litigation. The Company also pays attention to the identification of intellectual property risks in contracts and
conducts special examinations on key points in contracts to avoid from the source potential losses to the
Company due to intellectual property issues in contracts. Moreover the Company actively provides patent
training for business departments to enhance employees' patent awareness and related professional knowledge
and promote the improvement of the overall intellectual property protection level of the Company. Up to now
the Company has not been filed against any infringement litigation.Focusing on the strategic direction and market demands of the Company Topband promotes the closed-loop
management of patents from planning to benefit realization. The Company has established and continuously
improved the Patent Benefits Management System and actively implemented the further development planning
and achievement transformation of patents for the new direction and new products of business departments. The
Company also conducts in-depth searches on industry technology trends and competitors' patent planning and
prepares technical gap reports and innovation suggestions on a regular basis to help the R&D team break through
technical bottlenecks. In 2024 the patented product sales of the Company reached about RMB 1.268 billion
with an average gross profit of 32%.
45Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
2024
Type
Patent for invention Utility model Appearance Total
New applications 111 145 81 337
Accumulative patent applications 1270 1844 442 3556
New granted patents 149 108 66 323
Accumulative valid patents 413 1510 332 2255
Valid foreign patents in the current year - - - 7
Accumulative foreign valid patents - - - 27
2.1.3 Product quality assurance
In the whole life cycle management of products Topband has formulated the Quality Manual and ensures
the reliability of product design and manufacturing through a systematic quality management system and
innovative practices. At the product and process development stage the Company comprehensively uses tools
such as DFMEA (design failure mode and effects analysis) DFM (Design for manufacturability) simulation
technology APQP/IPD (advanced product quality planning/integrated product development) PPAP (production
part approval procedure) etc. in combination with the staged review and experience reuse mechanism to
comprehensively identify and control quality risks. With professional laboratory resources the Company verifies
the quality of product design process plan and devices in multiple dimensions to ensure the quality of
development from the source.Manufacturing quality management presents from supply chain and production process. The Company
selects qualified suppliers through the SQM (Supplier Quality Management) system and have professional IQC
(Incoming Quality Control) teams plan material inspection items in advance with advanced equipment to
effectively evade potential risks. In the production process personnel at many positions such as QE (quality
engineer) IPQC (input process quality control) OQC (outgoing quality control) and QA (quality assurance)
cooperate to monitor the whole process of manufacturing including process parameters process stability and
finished product quality. In 2024 the Company had no major liability incidents related to the safety and quality
of products.In terms of certification and compliance management the Company has passed the certification of ISO
9001 IATF 16949 ISO 14001 systems as well as the certification of the ISO 13485 Quality Management
System for Medical Devices. In terms of products the Company has passed multiple international certifications
including UL CCC&CQC CSA and ETL. In terms of environmental protection management and control raw
materials are purchased in strict accordance with the ROHS and REACH requirements environmental protection
engineers regularly collect annual effective environmental protection reports from suppliers and the IQC team
tests the environmental protection related parameters of incoming materials with XRF testing equipment to
ensure that the materials meet the standards before they are used for production.
46Topband ESG Report 2024
IATF 16949 Quality Management System IATF 16949 Quality Management System ISO 13485 Certification of Quality
Certificate Certificate Management System for Medical Devices
ISO 9001 Quality Management System ISO 9001 Quality Management System ISO 9001 Quality Management System
Certificate Certificate Certificate
Risk management and business continuity guarantee are the core links of the quality management systems.The Company applies the LECD evaluation criteria to identify environmental factors and hazardous substance
risks in design and production and has formulated the Risk and Opportunity Control Procedure and the FMEA
Control Procedure to strengthen preventive measures. By implementing the Emergency Plan Management
Procedure and the Business Continuity Management Procedure the Company systematically improves the
ability to respond to emergencies to minimize potential losses.Prepare corresponding
Identify accidents Implement preventive Regular drills Approve
and emergencies preventive measures/emergency and reviews measures
response plans
Emergency Management Process Flow
47Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
Topband attaches importance to continuous improvement and technological innovation. The Company
implements special quality improvement programs based on business plans and strategic plans (BP&SP) and
identified 219 improvement opportunities through process audit in 2024 to promote the closed-loop optimization
according to the Continuous Improvement Control Procedure. The Technological Innovation Team of the R&D
Center and the Process Preparatory Development Team of the Manufacturing Center jointly explore
breakthroughs in product and process design. In the quality month of each year different forms of quality
activities such as training case sharing and competition are carried out to strengthen the quality awareness of
all employees. In 2024 a total of 23 issues concerning quality culture publicity were released with contents
covering warning cases and responsibility investigation to deepen the penetration of quality culture.Collect Prepare Implement Verify the effect
continuous continuous continuous of continuous Keep records End
improvement improvement improvement improvement
information plans plans
Continuous Improvement Process Flow
In order to build a long-term quality assurance mechanism the Company standardizes the product
development process with the APQP Management Procedure and has formulated the Internal Review
Management Procedure and the Management Review Control Procedure to ensure the suitability adequacy and
effectiveness of the quality management systems. The internal review mechanism covers the IATF 16949 and
ISO 13485 standards to facilitate the continuous monitoring of the effectiveness of the quality systems combined
with process review product review and management review. For tiered quality training and electronic process
monitoring for new and old employees the quality talent base and implementation standardization are further
enhanced to provide systematic support for high-quality delivery throughout the life cycle of products.Case: Topband Quality Activities in 2024
The 2024 Topband Global Quality Month activities including quality training knowledge contest case
evaluation and promotion were organized for all the employees in October and November to strengthen the
quality awareness; during the activities all departments implemented the concept of "quality first" by making an
oath practical operation training cross-departmental cooperation etc. and finally effectively improved the
process control ability and customer satisfaction laying the foundation for continuous optimization of product
quality.Quality Activity Planning Quality Activity Training Evaluation of Excellent Quality Cases
48Topband ESG Report 2024
2.1.4 Protection of product safety
Product safety is one of the core commitments of Topband's corporate responsibility. The Company has
always integrated user health environmental sustainability and social trust into product life cycle management
and built a multi-dimensional safety protection system through systematic design dynamic monitoring and the
full-chain emergency response mechanism.Safety is the principal factor considered by the Company in the design and development phase of products.The Company uses high-quality materials that are resistant to high temperature corrosion and aging as the
criterion for selecting key components to ensure the stable operation of products under extreme temperatures
humidity or chemical environments. Through modular topological architecture design the Company breaks
down complex systems into independent functional modules to reduce risks of coupling failures while improving
the maintainability and traceability of products. For high-load scenarios the R&D team innovatively adopts a
multi-layer cooling structure design to ensure that the temperature rise of equipment is always within the safe
threshold during prolonged operation.Products are verified for electrical property environmental adaptability and durability by a three-level test
system before they are marketed. When testing the electrical safety the key indicators such as insulation
resistance withstand voltage strength and leakage current are tested to ensure that the products meet the national
standards and standards applicable in the export market. During the environmental adaptability test various
environmental conditions such as high-/low-temperature environment and humid environment are simulated to
verify the stability of products in actual scenarios. To guarantee the long-term reliability the Company carries
out the full-load aging and other tests to ensure the safety and reliability of products in their full life cycle.Topband integrates the intelligent safety monitoring system in the products to monitor in real time based on
the key parameters such as voltage current temperature etc. to ensure the rapid identification of abnormal
scenarios. The products are built in with multiple protection mechanisms for over-voltage over-current short
circuit over-temperature and leakage to automatically prevent common failures of equipment. The Company
has also established a compliance certification system covering the global market and its products have passed
CE UL and other internationally recognized certifications and dynamically tracks the latest standards of target
markets to ensure regulatory compliance. To reduce manmade risks the Company provides detailed user
manuals and empowers cooperative enterprises through customized training to effectively reduce the
misoperation rate of users.In addition for defective products the Company has formulated the Product Recall Control Procedure and
established a classified recall management system which defines two types of recall situations: recall of Class 1
is for defective products that are not compliant with local and foreign regulations or may cause serious health
risks (e.g. serious injury or death); recall of Class 2 is for products with non-safety defect that do not meet a
functional performance standard. The recall process is initiated immediately upon the occurrence of a quality
hazard in a delivered product and the triggering conditions include the verification of customer complaints the
discovery of non-conforming batches on the market by internal inspections and changes in technical regulations
or emergencies affecting the compliance of a delivered product.To recall a product the root cause of defects shall be analyzed and corrective actions shall be developed
which shall be circulated internally and to the customer concerned. All recalled products shall be identified and
isolated those that need to be destroyed shall be destroyed under the supervision of the Quality Department and
the rest shall be repaired or scrapped according to the Nonconforming Product Control Procedure; the Company
shall check the same type of products at the same time to eliminate potential risks. By strengthening quality
control and supply chain coordination the Company had no recall incidents in 2024 and will continue to
optimize the early warning mechanism in the future to ensure the safety and controllability of products in the
whole life cycle.
49Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
2.2 Optimize Service to Ensure Responsible Supply
Topband regards customer needs as the core and has built a full life cycle service system deeply embedded
with customer value chain through the efficient response mechanism customized solutions and intelligent
service tools. The supply chain management system actively built by the Company has promoted green
procurement and fair trade practices and created a transparent and sustainable industrial ecological chain.
2.2.1 Improvement of customer service
With the mission of "providing value to customers with intelligent control technology to benefit all people"
Topband has always placed customer needs at the core of its strategy and built a service system throughout the
life cycle of products. With the "four electrics and one network" (electric control motor battery power and IoT
platform) technologies as the core technologies the Company provide customized solutions to such industry
sections as tools home appliances digital energy intelligent vehicle robot etc. Through standardized process
design professional team support and differentiated service innovations the Company continues to improve
customer experiences and strengthen cooperation.Digital energy and
Business applications Power Tools and Home intelligent vehicles Robots
of "three industries" Appliances
Liquid-cooled Integrated industrial and Integrated household
commercial energy
"Component + system" Intelligent High-efficiency supercharging pile storage system energy storage system Battery pack
product composition controller motor Al anti-aging beauty AI lawn mowing robot Commercial Al cooking
instrument machine
Components AI system
Electric control
Motor technology Battery technology Power technology
Technical layout of technology
"four electrics and one
network"
IoT platform
In terms of service concept and practice the Company has established a closed-loop management system
from communication to improvement with the Customer Complaint Handling Procedure as the framework.Routine communication with customers shall not only cover product information communication contract
performance and response to changes but also lay emphasis on collecting customer feedback including
complaints and suggestions on products and services. For the key nodes such as customer property management
and urgent requirements the Company has developed standardized operating procedures to ensure transparent
and efficient services. For example the complaint handling is classified into three levels i.e. general serious and
extraordinarily serious levels according to the severity of problem and the processing mode of "responding to
customers within 4 hours replying with interim measures within 1 working day and replying with improvement
reports within 3 working days" is implemented where rapid and accurate countermeasures complete elimination
of losses and whole-process feedback are required.Types of customer complaints Deadline for providing emergency measures
General complaints 8H
Serious complaints 4H
Extraordinarily serious complaints 2H
50Topband ESG Report 2024
To reduce the occurrence rate of customer complaints from the source the Company drives service
upgrading with technology. In the field of energy storage lithium batteries the Company systematically improves
product reliability through developing highly stable products with a long service life in combination with failure
analysis cross verification and problem recurrence. In the pre-sales stage our professional team provides
in-depth consultation for customers to help them accurately match their needs; after sales tools such as the 8D
Analysis Report are used to quickly identify problems and promote improvements in a closed loop. In 2024 the
customer satisfaction for services was improved on the whole. Moreover the Company provides customer
trainings and technical supports on a regular basis to empower customers to improve the product availability and
extend the value period.In terms of service innovation the Company creates differentiation advantages through the strategy of rapid
response + resource customization + technology empowerment. For strategic customers dedicated account
managers are assigned to achieve one-to-one service to ensure seamless integration with customer needs; with
the help of remote monitoring technology the operating condition of the energy storage system can be traced in
real time for proactive prediction of risks and intervention for maintenance to guarantee the stability of the
system to the greatest extent. In the face of individualized needs the Company breaks through the boundaries of
standardized services and provides end-to-end customized solutions from product adaptation to energy
management to help customers achieve cost reduction and efficiency improvement.Customer feedback is not only the start of service optimization but also the source of the Company's
competitiveness. Topband regards complaints and suggestions as an opportunity for improvement and
continuously upgrades the service system through the complete chain of problem identification - root cause
analysis - implementation of measures - effect verification. In the future the Company plans to deepen the
application of digital tools make researches on cutting-edge technologies such as AI intelligent diagnosis and
predictive maintenance and further consolidate the benchmark image of "agile service and value symbiosis" in
the industry.
2.2.2 Strengthening the supply management
Topband has always regarded supply chain management as an important cornerstone for sustainable
development of the Company and promoted the comprehensive optimization of supply chain in the field of ESG
by building a scientific and standardized management system. The Integrated Supply Chain Center is a core unit
of the Company and subordinated by the Strategic Procurement Department Customs & Logistics Department
Business Planning Department and SQM and Digital Risk Control Department responsible for the
implementation of specific affairs forming a matrix collaborative network to achieve the integration and
efficient coordination of resources across various departments and bases. On this basis the product line business
partner (BP) mechanism is established for the product lines of various business units (BUs) to accurately identify
business needs and operation difficulties provide targeted support by coordinating internal and external
resources and ensure the flexibility and resilience of the supply chain system.In terms of supplier access and full life cycle management Topband has established a strict screening and
classification mechanism. Intended suppliers shall sign the core documents including the Quality Assurance
Agreement the Anti-Commercial Bribery Agreement the Environmental and Occupational Health and Safety
Agreement for Interested Parties the Anti-terrorism Security Agreement and the Letter of Guarantee for
Environmental Compliance to ensure that the obligations of both parties on quality delivery business ethics
environmental protection and social responsibility are clearly defined from the initial stage of cooperation.The Procurement Department of the Company reviews the qualification of suppliers based on their classes
divides suppliers into Classes A/B/C/D in combination with the scoring results of their quality system and
includes the qualified ones in the List of Compliant Suppliers. For key raw materials the Company further
requires upstream suppliers to sign the Commitment Not to Use Conflict Minerals to strictly avoid ethical and
environmental risks in the supply chain and respond to the international social responsibility standards.Indicator Unit 2024
Total number of suppliers (at the end of the Reporting Period) Nr. 2224
Number of suppliers in the Chinese mainland (at the end of the Reporting Period) Nr. 2031
Number of suppliers in Hong Kong Macao and overseas regions (at the end of the Reporting Nr. 193
Period)
Total number of new suppliers Nr. 862
51Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
To continuously improve the capability of suppliers Topband implements a dynamic multi-dimensional
evaluation mechanism. In accordance with the Supplier Monthly Performance Appraisal and Scoring Guidance
the business units evaluate suppliers quantitatively on a regular basis from the aspects of quality control delivery
timeliness service response etc. and reports the results to the management through the data sharing platform to
promote the performance transparency and continuous improvement of suppliers. Meanwhile the Company
organizes an on-spot audit of qualified suppliers across departments and teams on a yearly basis and the audit is
led by a supplier quality engineer (SQE) to check the system operation technical capability and social
responsibility performance of suppliers together with procurement engineering and other professionals to
promote the iterative upgrading of their management level.In respect of compliance and sustainable development Topband deeply integrates social responsibility and
environmental protection into its supply chain management practices. The Company requires 100% of its
suppliers to sign the ETI Basic Code and an Environmental and Occupational Health and Safety Agreement for
Interested Parties to promise to comply with the international labor standards on prohibition of child labor fair
pay reasonable working hours and occupational health and safety and incorporate environmental protection
requirements into the mandatory terms of contracts. The Company has also formulated the Supplier Code of
Conduct to clearly prohibit the use of conflict minerals and forced labor and supervises the implementation of
the Code through regular audits and surprise inspections. In the face of supply risks that may be caused by
market fluctuations policy adjustments and emergencies the Company has established the Abnormal Material
Cost Fluctuation Risk Response Mechanism to minimize the impact of supply chain disruptions on business
through the closed-loop management of early warning monitoring rapid decision-making collaborative
execution review and optimization.Indicator Unit 2024
Number of manufacturers that have conducted EIA Nr. 105
Number of manufacturers that have conducted SIA Nr. 105
Percentage of official manufacturers pass the ISO9001 certification % 100
Topband is committed to building responsibility shared transparent and mutual trusting cooperation
relations with suppliers. The rights and obligations of both parties are clearly defined in the Supply Guarantee
Agreement. While requiring suppliers to strictly perform the agreement the Company commits to pay for goods
in time as agreed and actively negotiate solutions for overstocked products of suppliers due to decisions of the
Company to reflect the concept of fair and responsible procurement. The Company also implements the
Procurement Data Confidentiality Management Standard to strictly protect the commercial information of
suppliers and safeguard the rights and interests of partners. In terms of supply chain transparency construction
Topband continues to enhance the openness and credibility of suppliers on ESG issues such as environmental
protection and labor rights through binding contract terms regular information disclosure and third-party audit.
52Topband ESG Report 2024
2.3 Protection of rights and interests and strengthening of care
Topband regards talents as the core competitiveness of the enterprise attaches great importance to
organization construction and gathers talents with grand ambitions sense of mission and internal drive striving
to create a working environment that is energetic and inclusive and enables continuous progress.
2.3.1 Employment rights and interests of employees
Topband always adheres to legal and compliant employment management strictly abides by the Labor Law
of the People's Republic of China the Labor Contract Law of the People's Republic of China and the relevant
labor laws and regulations of the region where the business is located to ensure that all labor practices comply
with international and local laws and standards. The Company firmly opposes all forms of forced labor and child
labor and is committed to creating a fair just and human rights respecting working environment. In order to
further strengthen the prevention and management of forced labor the Company has formulated the Forced
Labor Management Procedure to definitely oppose forced labor. For the employment of child labor the
Company has formulated the Child Labor Prohibition Procedure and the Child Labor Relief Procedure to
definitely prohibit the employment of child labor and provide remedial measures for possible child labor
incidents.In order to avoid any mistaken employment of child labor due to false age documents Topband applies
strict recruitment management measures to identify the age of candidates by effective ways such as face
recognition and ID card information matching and ensure that all employees meet the legal age requirements
when being recruited by the Company. The Company also provides convenient reporting and feedback channels
for employees including audit and complaint channels and the Employee Experience Platform to ensure the
timely identification and effective handling of various illegal acts. In 2024 the Company further enhanced the
training on human rights policies and procedures to ensure that each employee has a deep understanding of the
Company's commitments and regulations on labor rights anti-discrimination and human rights protection
through the systematic training of all employees so as to strictly abide by and implement all regulations in
practical work.The Company attaches great importance to the balanced distribution of talents in different regions and the
proportion of employees in Guangdong Province reached 30% in 2024 providing a solid talent base for future
regional development of the Company. The Company not only strictly protects the rights and interests of
employees at fixed positions but also actively offers more jobs and creates flexible and informal jobs. During
the Reporting Period the Company successfully rehired nearly 10 retirees through the introduction of flexible
employment policies such as reemployment of retirees which fully reflects the importance the Company
attaches to protecting the rights and interests of flexible and informal employees.Indicator Unit 2024
Number of total employees Person 11617
Number of employees by gender - Male Person 6664
Number of employees by gender - Female Person 4953
Percentage of male employees % 57.36
Percentage of female employees % 42.64
In 2024 in order to further improve the long-term incentive mechanism of the Company and attract and
retain outstanding talents Topband launched the Compound Employee Equity Incentive Plan aiming to
effectively mobilize the enthusiasm of the core team of the Company and realize the organic integration of
shareholders' interests corporate strategies and employees' personal interests. Under the premise of fully
protecting the rights and interests of shareholders the Company has launched two incentive measures i.e. stock
option and employee stock ownership plan with a wide range of coverage not limited to the management level
in accordance with the Company Law Securities Law Management Measures Self-discipline and Supervision
Guidance and other relevant laws and regulations as well as the Articles of Association and in the principle of
matching income with contribution.
53Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
Case: Compound Employee Equity Incentive Plan
The Compound Employee Equity Incentive Plan aims to effectively mobilize the enthusiasm of the core
team through a scientific and fair incentive mechanism achieve a high degree of consistency between the
interests of shareholders the Company and employees and jointly promote the realization of the Company's
long-term strategic objectives.Items Stock Option Plan Employee Stock Ownership Plan
Targeted object Core technical and management personnel Management level BU president etc. of
the Company
Source of share Buyback/additional issue of shares All shares repurchased
Source of capitals Self-raising by employees Provision for incentive fund accrued by
the Company
Range of coverage 1050 employees at the core and key No more than 50 employees at the core
positions and key positions
Number granted 32.9 million stock options granted in total 5181200 shares granted in total
In order to ensure the fairness and rationality of the incentive measures the Company hired a third-party
intermediary to strictly control the risks in the grant price configuration of assessment conditions expense
provision and other aspects of the equity incentive and Employee Stock Ownership Plan and consulted the
opinions of independent directors for many times so as to achieve a high degree of consistency between the
interests of employees shareholders and the Company on the basis of protecting the rights and interests of small
and medium-sized investors.In 2024 Topband has continuously optimized the salary management system formulated and implemented
the employee salary management system implemented differentiated salary band division for positions based on
value assessment built a salary grade development channel directly linked to the qualifications for the position
and formed a dynamic salary mechanism of "different salaries for the same position and changes in salary with
changes in position". For salary determination the method of a combination of performance and qualification
certification was adopted a gradual salary adjustment strategy of "small steps and fast progress" was
implemented and on the premise of ensuring reasonable control of the total salary department managers and the
Human Resources Department jointly assess it. For overseas employees the Company has revised the salary
welfare and holiday management measures further refined the principles time and process for the issuance of
overseas allowances improved the home leave policy and clarified the attendance management standards to
protect the rights and interests of overseas employees. Topband strictly fulfilled its responsibilities of paying
employees' wages and social security ensuring that all employees enjoy social insurance protection and building
a solid welfare foundation for employees.In terms of salary fairness and performance management the Company has established an internal salary
benchmarking system which compares industry salary levels through external salary reports and combines
internal salary data analysis to provide a basis for annual salary adjustment decisions ensuring that salary levels
are fair while being competitive in the market. The performance management system focused on organizational
strategic goals emphasized team collaboration and personal development and ensured that individual
performance is consistent with the Company's overall goals. Meanwhile the Company has actively promoted the
family welfare policy including 15 days of paternity leave 178 days of maternity leave and 1 hour of
breastfeeding leave per day to fully support the family needs of the employees.Indicator Unit 2024
Average pay gap between male and female employees
(Percentage of average total hourly pay of female employees in average total hourly % 74.94
pay of male employees)
54Topband ESG Report 2024
2.3.2 Employee care and communication
Topband attaches great important to communication with employees and actively improves the
communication channels and mechanism. The Company regularly holds employee communication meetings
every month and has built an Employee Experience Platform where the employees can express their opinions
and suggestions anytime and anywhere and the Company makes targeted adjustments and improvements on a
monthly basis according to feedback. Topband has established the labor union organization in Shenzhen and
Huizhou to protect the rights and interests of the employees. In 2024 the Company received 545 suggestions
from employees through the Employee Experience Platform and actively promoted the rectification and
optimization. Ten employee communication meetings were also held throughout the year in which the problems
proposed by employees were fully discussed and improved and 248 practical issues involving the rights and
interests of employees were successfully solved.Topband developed five plans namely Topband Ease Plan Topband Development Plan Topband Happiness
Plan Topband Love Plan and Topband Housing Plan to show solicitude for employees all aspects of physical
and mental growth. The welfare system covers all scenarios to reduce worries of employees.Relaxing
Holiday
Dining room/tea room/afternoon
Red packet for kick-off/Statutory holidays/holiday tea/gym/dance studio/associations/annual
gifts/birthday gifts vacation/tourism vacation/tourism
allowance
Entry
Married
Entry gift/training and learning/tutoring/commuter
Marriage leave
bus/free accommodation
/fair-price canteen/Shenzhen household registration
Activities Housing
Team building/cultural and sports activities/festival Housing provident
activities/association activities/New Year's party fund/government-subsidized rental
housing for talents/group housing
Full scene purchase/interest-free housing loans
Employee welfare
system
Retirement
Charging
Endowment insurance/memorial gifts
Internal training/external
training/scholarships for academic
upgrading/EAP psychological counseling
Insurance
Unemployment insurance/employment injury
insurance/critical illness insurance
Overseas activities
Accident Overseas subsidies/free
accommodation/home
Bereavement leave/EAP leave/personal accident insurance
and family visit subsidies
Expecting a baby
Maternity leave/paternity leave/maternity
insurance/amusement parks for kids/parent-child Illness
summer camps Medical insurance/physical
examination/paid sick leave/love fund
55Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
"Topband" Ease Plan "Topband" Growth Plan
* Social insurance and housing fund: endowment * Internal cultivation: Different cultivation
insurance medical insurance maternity insurance programs and management modules are set up for
employment injury insurance unemployment different stages of career including new employee
insurance and housing fund. management (new recruits from school and society)
* Statutory holidays: annual leave marriage professional skill training (R&D sales supply chain...)
leave maternity leave/paternity leave sick leave management of leaders of different levels.funeral leave etc. * External learning: For those in need of external
* Supplementary leave: paid travel leave. training all or part of the training expenses can be
* Daily welfare: free shuttle free dormitory reimbursed.cheap canteen welfare shop afternoon tea birthday * Scholarship for education promotion: Encourage
cards and holiday gifts. internal personnel in continuous education promotion
* Overseas benefits: overseas subsidies home and give scholarships to those realize education
leave personal accident insurance and family visit promotion.subsidies. * Internal teaching reward: Build a complete
internal training course system and an excellent lecturer
team and give corresponding rewards to lecturers
"Topband" Happiness Plan
engaged in development and teaching of courses.* Interest associations: At present all bases have
* Talent recommendation reward: Encourage
more than 20 interest associations. Rich activities can
on-the-job employees and external personnel to
be implemented for relax.introduce all kinds of talents to the Company and
* Employee activities: Monthly organize colorful
reward them upon recommendation.cultural activities including fun sports game fitness
and weight loss activities skill competition sports
carnival summer parent-child summer camp singing "Topband" Love Plan
contest e-sports competition engineer's day New * Periodic physical examination: Annually
Year party etc. organize all employees to take physical examination to
* Festival activities: including guessing lantern help employees to better manage their physical health.riddles at the Lantern Festival making Zongzi at the * Psychological care for EAP employees: Full-time
Dragon Boat Festival garden party at the psychological counselors are assigned to provide free
Mid-Autumn Festival annual meeting at the Spring psychological counseling services for formal employees
Festival etc. and their immediate family (parents children and
* Annual tourism/group construction: Tourism spouses) thus promoting physical and psychological
funds and group construction funds are provided. health and improve happiness. In 2023 the EAP Center
Recreational facilities: Free gym dance room and received a total of 431 employees and 40 immediate
children's amusement park are provided for family members (parents children and spouses) of
employees and activity venues such as basketball employees for psychological counseling with a total
court badminton court ping pong room and billiard counseling time of 519 hours. In addition 126
room are available. psychological trainings were organized for 5070
employees to effectively implement the Company's
care of the employees and reduce their psychological
"Topband" Housing Plan
risks.* Public rental housing for talents: The Company
* Employee experience care: An employee
can provide government-subsidized rental housing for
experience platform is set up so that employees can put
talents in Shenzhen for employees.forward suggestions and ideas and explore new
* Hukou transfer: The Shenzhen Headquarter can
demand for improvement of software and hardware.provide hukou transfer and registration services for
* Love fund: When employees or their immediate
the employees who are eligible for transferring their
family encounter serious diseases accidents
hukou to Shenzhen.emergencies etc. they can apply for the Company's
love fund to help over the difficulties. In 2024 the
Company appropriated RMB 460000 to the Love Fund
in total accounting for 45.63% of the annual income of
the Love Fund.
56Topband ESG Report 2024
Topband is committed to creating a respectful and inclusive working atmosphere taking the promotion of
employee happiness as an important task continuously promoting the cultural consistency among the bases in
China and actively carrying out work concerning fusion with foreign cultures so that every employee can find a
sense of belonging in Topband. The Company also has more than 20 associations covering outdoor
mountaineering basketball badminton table tennis and other ball sports as well as board games English corner
and other fields to meet the after-work entertainment and learning needs of employees. In 2024 Topband
organized 60 large-scale events and thousands of small-scale events in its parks and bases focusing on creating a
respectful and inclusive working atmosphere of the Company building the sense of happiness of employees
promoting the cultural consistency among the bases in China and carrying out work concerning fusion with
foreign cultures.Cultural activity system
Cultural management Incentive ceremony Employer brand Recreation and sports Holiday welfare activities
activities activities activities activities
Case: Topband 2024 Music Festival
In 2024 Topband held a music festival to create a platform for employees to release pressure and show
themselves to enable them to enjoy the beauty of music after busy work. At the beginning of the event 35 music
lovers actively signed up and 9 strong singers stood out after two rounds of auditions and sang with four music
partners on the stage on November 13. Topband also plans to continue the music festival as a long-term
conventional event and continuously enrich the content and form of the event to create more such warm and
happy moments for employees.Topband Music Festival
57Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
Case: Topband 2024 Mother's Day with the Theme of Collecting a Whiff of Fragrance May
Time Last Forever
On the Mother's Day in 2024 Topband with the purpose of caring and supporting female employees who
are mothers organized an event for 2024 Mother's Day with the theme of Collecting a whiff of fragrance May
time last forever including diversified activities in different parks such as giving out gifts for the Mother's Day
offline parent-child handicraft making and other colorful activities to express respect and gratitude to all
working mothers of the Company.Topband Shenzhen Park: Bouquet DIY and drawing the image of mother
Topband Nantong Park: Experiencing the fabrication of circular fans on Mother's Day
Topband Ninghui Park: Giving exquisite presents to mothers; tea party for mothers
Topband Ningbo Park: Giving scarves to mothers as a gift
2024 Topband Mother's Day Event (Shenzhen Park)
Case: 2024 Topband Sports Carnival
The 2024 Topband Sports Carnival run from summer to November 28 with 300 employees participating in
basketball football table tennis badminton billiards and outdoor yoga activities. This event not only provided a
platform for the employees to show themselves but also promoted the communication and cooperation among
employees and enhanced team cohesion. The fighting spirit and the love for sports shown by the employees in
the event have become a vivid embodiment of the corporate culture of Topband.Badminton Game Outdoor Yoga Activity Table Tennis Game
58Topband ESG Report 2024
Case: Topband Family Open Day
The 2024 Topband Summer Family Camp and Family Open Day events were successfully held in Shenzhen
Park. The Summer Family Camp helped solve the worries of stay-at-home parents and enabled the employees to
work with peace of mind. In the shuttle buses the park the canteen the playground and other areas of Topband
you can often see the warm picture of children and their mothers walking and chatting together and the
parent-child relationship is more harmonious making up for the parents' lack of child companion due to work.The Family Open Day provided children with an opportunity to understand the work environment of their
parents and visiting the exhibition hall and laboratory of the Company and other activities organized during the
event included flea market and charity contribution parent-child adventure games waste-recycling potted plant
DIY Shenzhen Wildlife Zoo sightseeing etc. This event allowed the children to broaden their knowledge and
enhance the relationship between parents and children.Group Photos of Topband Summer Family Camp Event Group Photos of Topband Family Open Day Event
59Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
2.4 Health care to promote the development
Topband adheres to promoting the deep integration of employee value and corporate sustainable
development on the basis of safety culture empowered by talents development.
2.4.1 Occupational health and safety
Topband always regards employees' health and safety as the core
of sustainable development of the enterprise and has been building a
safe and healthy working environment through systematic
management systems and multi-dimensional preventive and control
measures. The Company has established a sound occupational health
and safety management system formulated the Work Safety
Management System Work Safety Responsibility System Hazard
identification and Management System and other core systems
covering the whole process of risk prevention responsibility
implementation and labor protection and passed the certification of
ISO 45001 occupational health and safety management system to
ensure standardized and procedure-based safety management work.In November 2022 the Company established the Work Safety
Management Committee ("Safety Committee") which is the highest
decision-making and enforcement division of the Company for safety
management and comprehensively coordinates the work of work
safety. The Safety Committee is chaired by the manager of the
Administration department in charge of safety affairs and the head of
each business unit serves as a member. It holds regular meetings every
quarter to review the implementation of safety regulations annual Topband ISO 45001 Occupational Health and
Safety Management System Certificate
targets and reward and punishment mechanisms supervise the
implementation of standardized safety management system and lead
accident investigation and rectification. The Safety Committee
promotes the implementation of safety responsibilities by all
departments through the quarterly inspection and assessment
mechanism to ensure the breakdown and full coverage of safety
management objectives at all levels and for all employees.Director of Safety
Committee
Manager of Administration
Department
Work safety supervisor
Administration Supervisor
Microelectronics Motor Business Unit New Energy Business Electric Control Electrical Business
Department Manufacturing manager Unit Business Unit Unit
Manufacturing manager Manufacturing manager Manufacturing manager Manufacturing manager
Organization Chart of Topband Work Safety Management Committee
60Topband ESG Report 2024
In view of occupational health risks the Company implements full-cycle closed-loop management
regularly identifies occupational hazard factors in the workplace has established the hazard identification and
dynamic risk assessment mechanism takes measures such as job mobility and special protective equipment
allocation for high-risk positions and allows safety management personnel to conduct on-site investigations and
risk prevention in change of changes to the operating environment or process to ensure that the risks are
controllable. The Company also implements a strict safety training system to strengthen the safety capacity
building of all employees. New employees must receive the three-level safety training and pass the assessment
before starting work. Front-line production employees receive no less than 20 minutes of special safety training
every month covering operating procedures emergency response skills and occupational disease prevention
knowledge and early detection and early intervention of health risks is realized through occupational health
examination.In addition the Company has formulated the Emergency Response Plan for Work Safety Related Accidents
to clarify the key equipment and accident response protocol and organizes practical drills on a regular basis. In
2024 two fire evacuation drills and one chemical leak emergency response drill were carried out to improve the
self-rescue and mutual rescue ability and emergency response efficiency of employees by simulating real
scenarios to ensure the operability of the plan. In order to improve the ability of disaster prevention the
Company has also established a rescue and disaster relief command system to strengthen the ability of rapid and
collaborative response under emergencies and minimize losses arising from accident.The health and safety policies of Topband cover the work or activities of the Company related to various
suppliers and subcontractors and has formulated regulations such as Outsourced Construction Safety
Management System and the Outsourced Service Provider Control Procedures to clarify the safety standards and
supervision requirements of external partners working on the premises of the Company. The Company requires
employees of outsourced service providers to receive safety training before entering the premises of the
Company to ensure they fully understand and comply with the health and safety policies of the Company. In
addition the Company has established an effective supervision mechanism to ensure that their work conforms to
the safety standards of the Company.
2.4.2 Development and diversity of employees
Topband adheres to the human resource management concept of "keeping individuals full of vitality and the
organization always healthy" is committed to creating and sharing the value of the Company and employees by
focusing on the needs of employees providing development platforms and stimulating the internal drive of
employees. Topband also follows the employment concept of "respect inclusiveness openness equality
competition and prioritizing" attaches importance to personal growth potentials and identifies the real value
demands of employees.Topband HR management Topband employment philosophy
philosophy Employing people who agree with the
Give opportunities to employees: Company's values and emphasizing
Priority to internal promotions and new the growth potential of employees;
growth opportunities arising from Boldly employ "the young" (in age
organizational changes; and thinking/psychology (learning
Qualification and performance ability));
management promotion: Pay more attention to ability than to
Job qualifications driven ability working age;
improvement and promotion of Tapping into the true value demands
objective achievement through of employees and providing
performance appraisal; platforms and opportunities;
Value co-creating and value sharing: Attaching importance to professional
Achieve a win-win situation for both talents and able to accommodate
the Company and individuals. people with different personalities
and stronger abilities
61Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
* Diversity and inclusiveness
The Company always regards it as an important mission to create a work environment with open
communication equal opportunities and respect for individual differences and actively develops and implements
the Anti-Discrimination Management Procedure to resolutely eliminate any form of discrimination covering
race ethnicity nationality region language skin color gender sexual orientation and many other aspects. The
Company strives to create an atmosphere free of bullying harassment harm and discrimination and through
disciplinary mechanisms and continuous education constantly strengthens the enforcement of policies to ensure
that every employee can work in a safe and comfortable environment.In the recruitment and employment process the Company adheres to the principles of fairness and
transparency and takes a series of proactive measures to attract diversified talents. The Company includes the
training on diversity equality and inclusiveness into the employee training system and adopts diversified training
methods to constantly improve the understanding and cognition of employees on these concepts and help
employees better integrate into the diversified atmosphere. Meanwhile the Company carefully cultivates an
inclusive and respectful corporate culture through multicultural activities celebrations and a comprehensive
publicity and education strategy so that the concept of diversity and inclusiveness is deeply rooted in the hearts
of all employees.Case: Carry Forward China-Romania Friendship Paint a New Chapter of Cooperation
Under the background of the 75th anniversary of the establishment of diplomatic relations between China
and Romania the European factory set up by Topband in Romania has successfully built an efficient and
collaborative international team with a diverse and inclusive corporate culture becoming an excellent practice
case of global management for Chinese enterprises. Through the cultural integration mechanism the factory has
realized the deep integration of local wisdom and Chinese experience: with a deep understanding of the
European market the Romanian team has deeply participated in the optimization of the production process and
proposed an improvement plan in line with the characteristics of the European market; the Chinese team has
introduced intelligent manufacturing experiences to promote the efficient certification of the ISO14001
ISO45001 and ISO9001 systems. This innovative practice enabled the factory to be named one of the "Top 10
Best Companies for Organizational Culture and Best Employers" in Timisoara Romania in its second year of
operation.The European factory of Topband regards cultural differences as a source of innovation and builds a
platform for communication through traditional festivals o China and Romania. Employees were organized to
experience Zongzi making during the Dragon Boat Festival Romanian employees performed Chinese songs at
the Spring Festival Gala and moreover the Company integrated local traditional music into cultural activities to
establish cultural resonance between the Chinese expatriate employees and 83% of the local team. The factory
has also innovatively set up a "cross-cultural learning circle" to encourage Chinese and Romanian employees to
learn language and culture from each other to improve the efficiency of team work. The Company has also built
activities such as badminton games and skills competitions into informal learning scenes further promoting
cultural integration and team cohesion.The practice of the Topband European factory proves that under the framework of the Belt and Road
Initiative Chinese enterprises can fully realize localization through building an inclusive culture. This
management model which promotes integration through respect and creates values by exploiting differences
has not only won international recognition for Chinese smart manufacturing but also become a vivid footnote to
China-Romania economic and trade cooperation in the new era.
62Topband ESG Report 2024
* Career development
Topband has formulated internal systems such as the Job Qualification Management System the Measures
for the Management of Post Title and Capability Level System the Topband Leader Management System the
Grass-roots Line Leader Training System and Program the Innovation and Incentive System etc. to provide
employees with a clear career development path stimulate their enthusiasm and creativity ensure the stability
and sustainability of the talent pool as well as the reasonable structure and matching capabilities of the cadre
team by optimizing the talents selection and reserve mechanism thus to better support the implementation of the
strategies and promote the sustainable development of the enterprise.In terms of employee promotion and selection in 2024 the Company updated the Job Qualification
Management System in which the ranking system and multiple development channels for management leaders
are specified in detail the incentive measures for the Qualification Committee were added and the certification
review process was improved to promote employees to achieve career advancement based on their competency.The Company has established a job system that includes two major series i.e. professional ability and
management and the series of professional ability is divided into six job groups namely: technical group
marketing group functional group supply chain group manufacturing group and quality group. The Company
also provides employees with multi-position certification conditions to meet the promotion and selection needs
of compound talents.The career development mechanism of the Company focuses on the two core points of talent introduction
and talent development. In terms of talent introduction Topband adheres to the "532" talent introduction strategy.On the one hand the Company boldly uses excellent fresh graduates and attaches great importance to improving
both quality and number in the introduction of fresh graduates to consolidate the foundation of talent reserve.On the other hand the Company actively searches and recruits industry experts to build strong competitiveness
of talents by a combination of measures.In terms of talent development and training the Company adheres to the "361" talent structure strategy and
continues to promote the echelon construction through talent review so as to realize a more reasonable
distribution of talents within the team. The Company also resolutely implements the "1:1" management
succession strategy vigorously encourages the active flow of management personnel and provides strong data
support for the promotion and training of management personnel through the evaluation of their comprehensive
quality competence and development potential. In addition the Company has also established a poor reserved
management personnel to reserve a number of outstanding talents for key positions and effectively guarantee the
sustainable development of the Company.* Employee training
Topband is committed to providing all-round support for employees' vocational ability improvement and
personal growth through a systematic and multi-level talent cultivation system. The Company has established a
training management system covering the whole career cycle of employees including the Outsourced Training
Management System the Internal Part-time Trainer Management Measures the Trainer Management System
etc. to systematically ensure the integration of new employees and the ability improvement of on-the-job
employees. The Company has also launched the Policy on Encouraging the Improvement of English Ability to
strengthen the reserve of international talents.Since 2020 the Company has continued to invest in the construction of the job qualification system. By
2024 the Company's qualification system has covered 2400 employees at 62 positions with more than 1500
employees being certified which not only has provided employees with clear criteria for career advancement
but also has helped improve the organizational effectiveness through accurate matching of capabilities and
positions. On this basis the Company focused on the cultivation of core position capabilities and innovatively
designed special training camps to meet the needs of different job categories such as marketing procurement
quality and R&D. In 2024 the training camp covered more than 1000 person-times and offered more than 40
courses with a total class time of over 100 hours.Featured Training Camp
Marketing To improve practical sales skills and draw experiences from excellent cases through scenario-based
teaching modes such as live action role playing games based on key account project operation
Purchasing To improve the understanding of job roles workflow and methods through systematic lectures
Quality engineer To adopt the combination training mode of professional module + general module + special taskforce and
strengthen the teamwork and problem solving ability through workshops
R&D Engineer To achieve breakthroughs in technological and innovative capabilities through special training programs
63Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
In respect of echelon construction of management personnel the Company organizes management trainings
by levels. In 2024 5 trainings were organized in Shenzhen Nantong and Huizhou covering 226 management
personnel from grass-roots to senior levels. In the Shenzhen Base 14-18 courses were given under the Primary
Management Training Program and the Mid-level Management Training Program with a total of 92 class hours
and 87 employees were chosen into the pool of reserved management personnel after assessment. In the Nantong
Base 24 class hours and 25 class hours of training were provided respectively through the primary and
mid-to-senior level training camps. In the Huizhou Base 58 front-line management personnel were trained
through the team leader training camp. The trainings broke through the tradition modes and integrated "world
coffee" round table dialogue management concept debate competition impromptu speech with topic not
specified and other innovative interactive modes through which the leadership and strategic thinking of
management personnel were comprehensively improved in combination with guidance by trainers and team
tasks.Direct recruitment from school is an important source of talents for the Company. The Company adheres to
the "532" talent introduction strategy with 50% of its talents recruited through the school recruitment channel
and has developed a full-cycle training system specifically for them. Through the "New Recruits Training Camp"
the Company provides courses in the two modules of general knowledge and career skills to accelerate the
transition of new recruits from students to professionals. During the probation period the dual-track training
mode of teaching + practice is adopted and the training effect is tested through question answering and
debriefing of work responsibilities; a one-year protection period is also provided for new recruits to enable them
to match the transitional requirements of job qualifications and enhance their sense of belonging through caring
activities such as gifts for the first anniversary of employment.In addition to training on professional skills the Company also attaches great importance to the
comprehensive development of employees incorporates safety training corporate culture publicity mental
health counseling etc. into the scope of routine training and adopts diversified forms of training such as O2O
mixed learning flipped classroom offline training etc. to ensure the efficient access to learning resources. In
2024 various departments of the Company organized 929 internal training sessions with a total of over 1800
class hours and an average training time of 16 hours/person. Moreover the Company actively opens up external
training resources and employees can proactively apply the resources according to the regulations to further
broaden the channel of personal growth.Case: Topband First Training Camp for Overseas Bases
In May 2024 the Company launched the first "Overseas Goose Training Camp" which lasted for two
weeks. 21 outstanding management cadres and professional backbone personnel from three overseas bases in
Vietnam India and Romania participated in the training camp. The learning content included 15 hours of lessons
on the Company's development history strategy and management philosophy. In addition there were visits to the
parks in Shenzhen and Huizhou departmental learning and practice world coffee seminars and a two-day tour
to Guangzhou and Shenzhen to deeply experience China's economy and humanities. The training camp enhanced
overseas employees' understanding of the headquarters in China promoted cross-cultural communication and
cooperation and assisted in the implementation of the Company's globalization strategy.Topband 2024 Training Camp for Overseas Bases
64Topband ESG Report 2024
65Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
Indicator Unit 2024
Total number of employees in all regions who have received job related
Person 11617
training
Percentage of number of employees in all regions who have received job
%100
related training in total number of employees
Percentage of employees who have accepted diversity discrimination or
%100
harassment training in all employees in all regions
Number of new recruits attending the induction training Person 4816
Employee training person-times (staff + employee) Person-time More than 20000
Amount allocated for employee training (staff + employee) RMB Approx. 2 million
Total hours of employee training (staff + employee) h Approx. 160000
Average hours of employee training (staff + employee) h/employee 10
66Topband ESG Report 2024
2.5 Never Stop Public Welfare with Love
Topband firmly believes that volunteer service is a key bond for social cohesion. For a long time Topband
has been actively engaged in programs in many fields such as education low-carbon poverty alleviation and so
on to make every effort to eliminate social injustice and poverty and contribute to the sustainable development of
society.
2.5.1 School-enterprise cooperation
Topband always upholds the idea of deep cooperation
with universities attaches great importance to personnel
training and development and actively promotes the
progress of education. From 2021 Topband and Huizhou
University launched their cooperation strategy and
established a teaching practice base. Topband has also
funded a special scholarship with several underlying awards
in the School of Electronic Information and Electrical
Engineering of Huizhou University to encourage the growth
of college students and motivate students to achieve
all-around development in scientific and technological
Topband Scholarship Award Ceremony
innovation campus culture literature and art sports etc. In
March 2024 a total of RMB 50000 was granted to 30
students at the award ceremony of the Topband Scholarship.In 2024 more than 10 technical exchange activities especially focusing on technical exchanges and
discussions on new energy products new materials and intelligent control of high-power energy equipment were
organized between Topband and professors from various universities to actively explore and promote the
practical possibilities of the research results of the universities - including the exchange with Guangdong
University of Technology on the research route strategy and current results in the field of solid electrolyte and
later the visit to and technical exchange with Songshan Lake Materials Laboratory; exchanges with Harbin
Institute of Technology on the researched technical route of solid and semi-solid electrolytes research results of
dexterous humanoid robot hand and concepts to realize the route and products.
2.5.2 Public service activities
Topband always adheres to the concept of promoting social harmony conveying love and warmth actively
participates in work for the public good and extensively supports programs in various fields to contribute to
promoting social sustainable development. In 2024 Topband Volunteers Association organized and participated
in more than 25 internal and external activities involving more than 300 participants including environmental
protection volunteer service care for special children community assistance activities Bao'an Marathon service
park activity service etc. and won many honors for example the Award for Voluntary Service Organization with
Outstanding Contribution granted by Shiyan Sub-district Bao'an District the Award for Excellent Children
Friendly Organization Topband 2024 Gold Medal Association. Topband also initiated the establishment of
Shenzhen Bao'an Shiyan Sub-district Micro Public Welfare Association together with Shiyan Sub-district and
serves as the executive vice president.
67Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
In terms of environmental protection the Company adheres to the principle of "making life smarter and
low-carbon" and is committed to reducing negative effects on the environment and applying sustainable
methods and technologies to reduce energy consumption and emissions and vigorously promote the development
of circular economy. In 2024 Topband held a series of voluntary activities such as "Take the Lead in
Low-carbon Actions" to actively explore ways to promote sustainable development within the Company
integrate low-carbon concepts into daily work and life improve the environmental awareness of all employees
and contribute to the cause of environmental protection.Find enjoyment in voluntary activities
for environmental protection!
Yangtai Shiyan Lake
Mountain
Lucid waters and lush mountains are invaluable assets.Topband volunteers display the spirit of environmental
protection with practical actions contributing their own
strength to the sustainable development of the environment.Indicator Unit 2024
Total investment of the Company to voluntary activities RMB ten thousand 2
Number of employees participated in voluntary activities Person 250
Total hours of voluntary services provided by employees h 639.5
Average hours of voluntary services provided by employees h 2.558
Topband also actively responds to the rural revitalization policy. On November 19 2024 Topband reached
a cooperation agreement with the Huizhou Zhongkai High-tech Zone Charity Federation to assist the Western
China and Eastern China cooperation in Anlong County Qianxinan Autonomous Prefecture Guizhou Province
focusing on industrial development rural revitalization and improvement of people's livelihood to support the
high-quality development of Anlong County. Topband donated RMB 10000 to the program to promote the
development of rural assistance activities fulfill the corporate social responsibility and make contributes as a
member of society.Indicator Unit 2024
Fund invested by the Company to support RMB ten thousand 1
rural revitalization
Total amount for public welfare and charity RMB ten thousand 6
68Topband ESG Report 2024
Prudent Governance
Sustainable Future
Topband strictly abided by relevant national laws and regulations continuously improved the corporate
governance system ensured compliance operations and always adhered to business ethics. On this basis the
Company continued to strengthen data security management and effectively guaranteed customer privacy
security through the establishment of a strict information security system providing a solid guarantee for the
stable growth of the Company.
69Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
3.1 Improve Management Systems
The Company has established a modern corporate governance mechanism and thoroughly implemented the
corporate governance in accordance with the law to ensure that the Company's decision-making is scientific and
efficient and its business operations are standardized and transparent.
3.1.1 Corporate governance structure
Topband strictly abided by 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 the Stock Listing Rules of
Shenzhen Stock Exchange the Self-regulatory Guidelines for the Companies Listed on the Shenzhen Stock
Exchange No. 1 - Standardized Operation of the Companies Listed on the Main Board and other laws and
regulations and established a sound governance structure to ensure the standardized operation of the Company.The Company formulated key internal rules and regulations such as the Rules of Procedure for the General
Meeting of Shareholders and the Articles of Association to lay the foundation for the long-term and stable
development of the Company. At the same time we paid close attention to industry dynamics and market
changes and updated and optimized our internal regulations in a timely manner to adapt to the ever-changing
market environment and regulatory requirements.The Company's Board of Directors established the Strategy Committee the Nomination Committee the
Salary and Assessment Committee the Audit Committee and the Independent Directors' Special Committee.Each special committee provided professional support and guarantee for the Company's development based on
its own work rules. In 2024 Topband held 11 special committee meetings in accordance with laws and
regulations including: 2 meetings of the Strategy Committee 2 meetings of the Salary and Assessment
Committee 5 meetings of the Audit Committee and 2 meetings of Independent Directors' Special Committee.General Meeting of
Shareholders
Strategy Committee
Board of Supervisors
Nomination Committee
Salary and Assessment Secretary of the Board
Board of Directors
Committee of Directors
Audit Committee
Independent Directors'
Special Committee
President
70Topband ESG Report 2024
Indicator Independent Directors' Special Committee Unit 2023 2024
Number of meeting(s) of the Board of Directors held Time 11 12
Number of general meeting(s) of stockholders held Time 4 3
Number of annual general meeting(s) of stockholders held Time 1 1
Number of extraordinary general meeting(s) of stockholders
Time 3 2
held
Number of meeting(s) held of the Board of Supervisors Time 7 7
Number of meeting(s) of the Strategy Committee Time 1 2
Number of meeting(s) of the Audit Committee Time 4 5
Number of meeting(s) of the Nomination Committee Time 1 0
Number of meeting(s) of the Salary and Assessment Committee Time 2 2
Number of meeting(s) of Independent Directors' Special
Time Not established 2
Committee
* Diversity of the Board of Directors
In the process of selecting director candidates Topband gave priority to accounting experts strategic
experts and investment professionals with relevant business capabilities. In addition we also attached
importance to personal characteristics of board members such as age structure and educational background and
strove to build a diversified board team so as to provide a comprehensive perspective and rich experience for the
Company's development. As of now all members of the Company's Board of Directors have rich industry
experience and their professional backgrounds cover multiple fields such as strategy accounting corporate
management and investment.Professional competence
Educational
Position Name Gender Industry Financial Corporate
background Strategy Investment
experience accounting management
Wu
President Male Master
Yongqiang
Vice President and
Head of the Ma Wei Male Bachelor
Microelectronics BG
Vice President and
Zheng
Head of the Electric Male Master
Sibin
Control BG
Head of the Electrical Peng
Male Master
BG Ganquan
Li
Independent director Male Doctor
Xumeng
Chen
Independent director Male Doctor
Zhengxu
Independent director Qin Wei Male Master
71Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
* Independence of the Board of Directors
In accordance with the requirements of the Management Measures for Independent Directors of Listed
Companies Topband formulated the Working System for Independent Directors’ Special Committee to ensure
that independent directors could effectively perform their duties and give full play to their supervisory check and
balance and professional consulting functions. The Company stipulated that the Independent Directors' Special
Committee could be held only when more than two-thirds of the independent directors are present or
commission others to attend so as to ensure the scientific and effective decision-making of the meeting. In
addition we explicitly required each independent director to submit a report on work at the annual general
meeting of shareholders detailing the performance of duties so that shareholders could fully understand the
independent director's work performance and effectiveness in fulfilling the duties. As of the end of the Reporting
Period the Company had a total of three independent directors.Indicator Unit 2023 2024
Number of board members Person 7 7
Number of independent directors Person 3 3
Proportion of independent directors in the Board of Directors % 42.86 42.86
Percentage of independent directors in the Salary and
%66.6766.67
Assessment Committee
Proportion of independent directors in the Audit Committee % 100 100
Proportion of independent directors in the Nomination
%66.6766.67
Committee
Proportion of independent directors in the Strategy Committee % 20 20
* Building of the Board of Directors
Topband adhered to the principles of work-based distribution and combination of responsibilities rights and
benefits and formulated the Remuneration Management System for Directors Supervisors and Senior
Executives which closely combined the remuneration of directors supervisors and senior executives with the
Company's benefits performance goals and personal work ability to ensure the scientific and reasonable
remuneration system.The directors supervisors and senior executives serving in the Company were subject to an annual salary
system where the base annual salary was determined in accordance with the system of position job
responsibility level and ability level and was paid monthly; the operating annual salary was paid at the end of
each fiscal year in a specific amount determined by the resolution of the Board of Directors or the General
Meeting of Shareholders. The work allowance plan for independent directors was formulated by the Company's
Board of Directors and submitted to the General Meeting of Shareholders for deliberation and approval before
the payment of work allowance. The reasonable expenses incurred by independent directors for attending the
meetings of the Company's Board of Directors or the General Meeting of Shareholders or performing other
duties were borne by the Company in accordance with the relevant provisions of the Articles of Association.In addition in order to prevent and reduce conflicts of interest the Company developed a series of targeted
management mechanisms to comprehensively reduce the risks of various conflicts of interest.
72Topband ESG Report 2024
Topband's measures for prevention and management of conflicts of interest
* After deliberation by the Board of Directors and the General Meeting of Shareholders senior executives
and their responsibilities were clearly defined in the Articles of Association and the Non-Compete Agreement
was signed with the senior executives.* The basic obligations of controlling shareholders were clearly stated in the Articles of Association such
as: exercising shareholder's rights in accordance with the law and not abusing control rights to damage the
legitimate rights and interests of the Company or other shareholders; not illegally occupying company funds; not
requiring the Company to provide guarantees in violation of laws and regulations; not using undisclosed
important information to seek benefits or leak information; not damaging the rights and interests of the Company
and other shareholders through unfair related party transactions; ensuring the independence of the Company and
not interfering with the Company's normal decision-making procedures; safeguarding the common interests of
the listed company and all shareholders.* The Related Party Transaction Management System was formulated to clarify the avoidance and voting
procedures for shareholders and directors with related party relationships within the Company and related
information on related party transactions was regularly disclosed in periodic reports.* The Non-compete Agreement was signed with employees to bind and regulate them in respect of business
and investment; the relative avoidance and cross-business unit or cross-department recommendation system was
implemented.* The Articles of Association and the relevant rules of procedure for the General Meeting of Shareholders
and the Board of Directors were strictly abided by and the principle of shareholder equality was followed.* Open and transparent information disclosure system.* The independent director's open solicitation of proxy voting rights.* Supervision of management personnel by the General Meeting of Shareholders the Board of Supervisors
the Audit Committee and independent directors.* The right of shareholders to request the convening of an Extraordinary General Meeting of Shareholders
and the right to vote by proxy.Indicator Unit 2022 2023 2024
Ratio of the annual total remuneration of the highest-earning individual to the / 18.37 16.53 13.7
annual total remuneration median of all employees
Ratio of the growth rate of the annual total remuneration of the % 122 122 94
highest-earning individual to the growth rate median of the annual total
remuneration of all employees
Topband attached great importance to the capacity improvement of board members to ensure that members
meet the qualifications requirements of China Securities Regulatory Commission the Exchange and the
Company and was committed to building a board team with strong professional capabilities and high
comprehensive qualities to better lead the Company's long-term sustainable development. During the Reporting
Period the Company carried out special information disclosure promotion for board members from time to time
and made all directors continuously familiar with information disclosure and business compliance rules based on
case analysis to improve their professional quality and decision-making ability.
73Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
3.1.2 Stockholders' equity protection
Topband was committed to protecting the participation rights and the rights to know of small and medium
shareholders. The Company strictly abided by the requirements of laws and regulations such as the Securities
Law of the People's Republic of China and the Management Measures for Information Disclosure of Listed
Companies and formulated the Rules of Procedure for the General Meeting of Stockholders and the Investor
Relations Management System based on actual conditions to ensure that small and medium shareholders could
fully understand the Company's operations and participate in the Company's decision-making process. At the
same time we properly handled the impact of various public opinions on the Company's market value business
reputation and normal production and operation activities in accordance with the Public Opinion Management
System to effectively protect the legitimate rights and interests of investors.In addition the Company also paid attention to strengthening communication with investors and giving full
play to the role of the investor hotline and the SZSE Cloud Platform to ensure information transparency and
reduce misunderstandings and misjudgments. As of the end of the Reporting Period the Company had disclosed
a total of 12 investor communication and research minutes achieved a response rate of 92% through the SZSE
Cloud Platform and communicated with investors fully timely and through multiple channels. At the same time
the marginal changes in issues of concern to the capital market had been summarized and fed back to the
Company's management and suggestions for business development had been formed when necessary thus
forming a closed loop of investor protection.* Regard returns to shareholders as important
Topband always attached importance to reasonable investment returns to investors. We formulated the Plan
for Dividend Distribution to Shareholders for the Next Three Years (2023-2025) in accordance with the
requirements of the Notice on Matters Relating to the Further Implementation of Cash Dividend Distribution of
Listed Companies the No. 3 Guideline for the Supervision of Listed Companies - Cash Dividend Distribution of
Listed Companies the Articles of Association and other relevant documents. On the premise of ensuring the
sustainable development of the Company the Plan fully considered the returns to shareholders and strove to
achieve a balance between company development and shareholder interests. The Company has maintained a
continuous and stable profit distribution policy since its listing with a particular emphasis on continuous and
stable cash dividends to actively reward the shareholders. In 2024 the Company planned to pay a cash dividend
of RMB 0.7 (tax inclusive) per 10 shares to all shareholders based on the Company's total share capital of
1228789388 shares (excluding repurchased treasury shares). It was expected to pay a cash dividend of RMB
86.0153 million in 2024. Since its listing in 2007 the Company has distributed a total of RMB 752 million in
cash dividends (excluding dividends to be distributed in 2024) and has repurchased a total of 38.0657 million
shares with a repurchase amount of RMB 288.111 million.Indicator Unit 2021 2022 2023 2024
RMB ten 6271.30 7586.13 7350.27 8601.53
Cash dividends (tax inclusive)
thousand
Net profit attributable to shareholders of listed 56496.43 58265.53 51551.40 67144.27
RMB ten
companies in the consolidated statement in the year of
thousand
dividend distribution
Percentage of cash dividends in the consolidated net 11.10 13.02 14.26 12.81
profit attributable to the parent company in the year of %
dividend distribution
Cash dividends to be distributed per 10 shares (tax 0.5 0.6 0.6 0.8
RMB
inclusive)
RMB ten 0 5243.45 5997.00 9570.21
Amount of repurchases
thousand
Percentage of repurchases in the consolidated net profit 0.00 9.00 11.63 14.25
attributable to the parent company in the year of %
dividend distribution
RMB ten 6271.30 12829.57 13347.27 18171.74
Total cash dividends (including repurchase forms)
thousand
Percentage of total cash dividends (including 11.10 22.02 25.89 27.06
repurchase) in the consolidated net profit attributable
%
to the parent company in the year of dividend
distribution
74Topband ESG Report 2024
75Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
* Timely disclosure of information
In order to protect the legitimate rights and interests of investors Topband continuously strengthened the
management of information disclosure affairs and fulfilled information disclosure obligations in strict
accordance with the Company Law of the People's Republic of China the Securities Law of the People's
Republic of China and other laws and administrative regulations so that investors could timely and fully
understand the Company's business development. The Company formulated the Public Information Disclosure
Management System the Work System for the Information Disclosure Committee and the Registration and
Management System for Insiders of Inside Information to further standardize the information disclosure process
clarify information disclosure responsibilities strengthen inside information management prevent information
leakage risks and ensure the fairness justice and openness of information disclosure.We regularly disclosed cross-appointments on the Board of Directors cross-shareholdings with suppliers
and other stakeholders shareholdings of controlling shareholders and annual routine related party transactions in
the form of announcements and granted shareholders the right to review and copy the Articles of Association
minutes of meetings of the Board of Shareholders resolutions of meetings of the Board of Directors resolutions
of meetings of the Board of Supervisors and financial accounting reports to ensure transparency of company
information. In 2024 the Company strictly followed various rules and regulations and obtained a B rating in the
information disclosure rating of Shenzhen Stock Exchange.
76Topband ESG Report 2024
3.2 Stick to Compliant Development
The Company continued to strengthen its compliance management system and risk management system
and ensured its long-term and steady development by improving risk identification monitoring and response
mechanisms.
3.2.1 Strengthening of risk control
Topband adhered to the concept of comprehensive risk management and was committed to building a sound
risk governance structure to ensure the comprehensiveness and systematicness of risk management. The
Company integrated risk management into every aspect of corporate governance based on the Internal Control
Management System the Enterprise Risk Management Framework and various compliance processes of the
Company.We divided risk management into three key aspects: risk identification risk control and risk response. At the
same time the Company regularly updated the risk factors in the risk library in accordance with changes in the
internal and external environment and clearly defined them to ensure the accuracy of risk identification and
management. In 2024 we found no new risk factors compared to the previous year.Risk identification Risk control Risk response
The Company actively built a The Company ensured the According to the nature and
legal risk library and systematically effectiveness and sustainability of severity of the risks the Company
collected sorted and managed legal risk management measures through adopted corresponding response
risk information in order to identify the formulation of overall plans strategies in accordance with the
various potential risks in a timely implementation of specific law to avoid or reduce potential
and accurate manner. measures evaluation of losses caused by the occurrence of
implementation effects and risks.supervision mechanisms.Topband strictly adhered to the "three lines of defense" for risk management. At the same time Topband
took risk control as its core work and built a sustainable control mechanism through special improvements and
single-point control. As of the end of the Reporting Period the Company had identified a total of 6 major risks
and 11 general risks of which 3 major risks and 9 general risks had been controlled. We will continue to
strengthen risk management and continuously optimize risk management strategies in a dynamic environment."Three lines of defense" * As the first line of defense for risk management the business and its
for risk management support departments carried out risk management through control measures such
as separation of duties authorization and approval budget control information
systems and property preservation and daily approval processes.* As the second line of defense for risk management compliance
departments such as finance law and securities departments carried out risk
identification control and response by building a risk library.* As an independent third line of defense the Audit Department inspected
confirmed and improved the implementation of the Company's risk management
through daily supervision and internal audit items.
77Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
At the same time Topband established a trade secret risk feedback mechanism to collect and handle trade
secret risk information through multiple channels. The Company established dedicated trade secret risk feedback
channels including the internal network email and dedicated feedback hotline to ensure that employees and
partners could easily and quickly feed trade secret risk issues back. In addition we established a strict feedback
information handling process thoroughly investigated each piece of feedback received and took corresponding
measures based on the investigation results to ensure the timely and effective handling of trade secret risks. As of
the end of the Reporting Period the Company had successfully implemented three trade secret risk optimization
measures effectively reducing the probability of occurrence of leakage risks.Topband always regarded the construction of risk culture as a key aspect in corporate development. We
provided training for trade secret officers in various business domains to significantly improve their ability to
identify and control trade secret risks. At present the relevant training has covered 9 departments and the risk
classification tables have been successfully prepared for each department providing a strong support for the
Company's risk management. During the Reporting Period the Company was not involved in any major
litigation or arbitration items and other risk events.Indicator Unit 2024
Number of risk management training provided Time 20
Number of person-time participating in risk management training Person-time 165
3.2.2 Implementation of compliant operations
Topband always placed compliance management in an important position. The Company formulated
management measures such as the Code of Business Conduct and Compliance of Topband Group the Corporate
Accountability System the Management Measures for Rewards for Complaints and Reports of Misconducts and
Corrupt Practices the Management Measures for Declaration of Conflicts of Interests Between Employees and
the Company and the Internal Control Management System which covered all aspects of compliance
management and provided a solid institutional guarantee for the Company's steady operation. In 2024 we further
improved the compliance management system and newly issued the Financial Data Confidentiality Management
Specifications to strengthen the confidentiality measures of financial data and effectively prevent the risk of
information leakage; at the same time we revised the Regulations on Rewards and Punishments for Trade Secret
Violations to better adapt to the Company's development needs and changes in the external environment and
ensure the timeliness and effectiveness of the system.On the basis of the Internal Control Management System Topband established an internal control
management system with the Legal Department the Finance Department the Securities Department and the
Audit Department as the core to ensure and enhance the supervision effect. With special internal control audits
and field audits on a regular basis we could effectively identify and rectify management shortcomings and
process loopholes and provide practical improvement suggestions for internal control aspects thereby
improving the overall management quality.To ensure compliant operations the Company launched an internal control audit platform to digitally
manage audit projects and follow up on the rectification of audit projects. On the other hand after deliberation
by the Board of Directors and the General Meeting of Stockholders Topband hired RSM China to regularly
supervise and audit annual reports and other matters and further improved the Company's compliance
management level with the help of professional external forces.
78Topband ESG Report 2024
* Compliance training
The Company actively promoted the construction of compliance culture and was committed to deepening
the concept of compliance in the hearts of the people creating a good atmosphere where all employees
participate and everyone complies. In order to raise the employees' awareness of compliance and risk prevention
and control Topband constantly performed education and publicity campaigns in the internal network the
official website the WeChat Official Account of the Audit Department for anti-fraud purpose and the internal
publication Yanxingzhe and other platforms ensuring that all employees could deeply understand the importance
of compliance management. During the Reporting Period the Company provided 34 times in total of targeted
compliance training for different departments focusing on compliance management such as protection of trade
secrets risk control anti-corruption and anti-embezzlement and anti-commercial bribery to ensure that
employees in each department could master the compliance knowledge and skills related to their work and
effectively prevent various risks.Photo of Compliance Training for the Electrical Photo of Compliance Training for the Electric Control and
Department R&D Departments
Indicator Unit 2024
Number of compliance trainings Time 34
Total hours of compliance training h 36.6
Person-time participating in compliance training Person-time 2202
Employee coverage of compliance training % 18.95
79Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
3.3 Adhere to Business Ethics
The Company was committed to maintaining an open and aboveboard business environment fully resisting
any form of bribery and unfair competition and ensuring the legality fairness and transparency of all business
activities.
3.3.1 Building of a solid bottom line of integrity
The Company actively shaped a clean culture with anti-bribery and anti-corruption as its cornerstones
deeply absorbed the industry's compliance concepts carefully built an anti-corruption compliance system that
suited its own characteristics and passed the ISO 37001 anti-bribery management system certification. In
accordance with the Anti-unfair Competition Law of the People's Republic of China the Anti-monopoly Law of
the People's Republic of China and the Anti-corruption Law of the People's Republic of China we constantly
improved our anti-corruption governance system and effectively safeguarded the legitimate rights and interests
of all stakeholders. During the Reporting Period the Company revised the Management System for Declaration
of Conflicts of Interests Between Employees and the Company and the Anti-bribery Agreement to clarify the
specific circumstances that were deemed to be soliciting and accepting bribes and made every effort to create an
honest and upright business environment.ISO 37001 Anti-bribery Management System Certificate
We had zero tolerance for fraud and corruption and were committed to ensuring that all aspects of the
supply chain complied with laws regulations and business ethics standards. To this end the Company required
employees to sign the Purchase Personnel Integrity Agreement and required business partners to sign the
Commitment to Integrity and the Anti-Bribery Agreement before cooperation to ensure that all stakeholders
could adhere to the consistent integrity concept thereby creating a comprehensive integrity management system
from the source to the end. For suppliers who violated the above Agreement and Commitment we imposed a
fine of RMB 1 million or 30% of the transaction amount based on the content of the Agreement and held them
criminally responsible.In daily operations Topband conducted irregular business ethics and anti-corruption reviews and risk
assessments every month focusing on the inspection of operating business transportation costs financial
reimbursement and procurement of fixed assets and raw materials to ensure the authenticity and rationality of
expenditures and reimbursements and prevent false reimbursements and corruption. During the Reporting Period
the Company discovered one case of business bribery and embezzlement and attached great importance to the
case and reported it to the police for handling. In the future we will strengthen supervision of the department's
asset purchase requisition and acceptance processes intensify publicity efforts on integrity and create a clean
and upright business environment.
80Topband ESG Report 2024
* Anti-corruption culture construction
Topband provided anti-fraud and integrity culture training on an irregular basis every quarter to ensure that
employees established a correct concept of integrity. The training content centered on the two major themes: the
Code of Business Conduct and Compliance and the Duty Crime and Risk Prevention. The employees were
helped to deeply understand the harmfulness of corruption and consciously resist unhealthy practices in their
work through case analysis and special lectures. At the same time the Company also strengthened the daily
penetration of integrity education through various channels. The Audit Department used the WeChat Official
Account to issue integrity reminders during important festivals such as the Spring Festival and the Mid-Autumn
Festival and published penalty announcements for violators in the internal software to further strengthen
employees' awareness of integrity in their work. According to statistics the relevant integrity reminders and
penalty announcements have been read more than 6200 times.Clean Procurement Training Training on Duty Crime and Risk Prevention
Indicator Unit 2024
Total number of times of anti-corruption training provided Time 4
Total person-time receiving anti-corruption training Person-time 980
Number of directors receiving anti-bribery and anti-corruption training Person 7
Proportion of directors receiving anti-bribery and anti-corruption training % 100
Total number of managers receiving anti-bribery and anti-corruption training Person 8
Percentage of managers receiving anti-commercial bribery and anti-corruption % 66.67
training
Number of employees receiving anti-bribery and anti-corruption training Person 972
Proportion of employees receiving anti-bribery and anti-corruption training % 8.37
* Fair competition
Topband abided by the Anti-unfair Competition Law of the People's Republic of China the Anti-monopoly
Law of the People's Republic of China and other relevant laws and regulations actively advocated fair trade and
fair competition and always participated in market activities in accordance with the law and in compliance with
the regulations. The Company adopted various methods to strengthen internal management and was committed
to firmly maintaining fair competition order in the market in its operating activities. During the Reporting Period
the Company was not involved in any major litigation matters involving unfair competition or monopolistic
behavior.
81Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
3.3.2 Anti-corruption reporting mechanism
Topband continuously optimized the reporting mechanism broadened reporting channels and encouraged
employees to take the initiative to disclose suspicious behavior. In accordance with the Management Measures
for Complaint and Reporting of Misconducts and Corrupt Practices we specified a variety of reporting channels
in detail including online telephone email WeChat Official Account of the Audit Department and reporting
mailbox so that the reporting scope successfully covered the Company's partners customers suppliers and
internal and external employees. Topband also established a reward system for reporting providing
corresponding rewards for substantiated reports. For violations we took different disciplinary measures based on
the severity including credit score deduction disciplinary warning demerit recording dismissal or the transfer
to judicial organs for investigation.We attached great importance to the privacy protection of informers and strictly followed the Management
Regulations on the Protection of Informers to prevent informers from being subject to any form of unfair
treatment. During the investigation Topband strictly controlled the scope of informed persons and adopted secret
investigation methods to effectively safeguard the legitimate rights and interests and personal safety of the
informers.Reporting channels * Tel.: 0755-27651888-8040
* Email: tbjb@topband.com.cn
* Letter: Audit Center Shenzhen Topband Co. Ltd. Liyuan Industrial Zone
Tangtou Village Shiyan Town Keji 2nd Road Bao'an District Shenzhen Postal
code: 518108
82Topband ESG Report 2024
3.4 Protect Data Security
In accordance with the Cybersecurity Law of the People's Republic of China the Regulations on the
Security Protection of Computer Information System of the People's Republic of China the Management
Measures for the Graded Protection of Information Security and other laws and regulations Topband regarded
data security management as a core part of the overall corporate strategy. The Company has developed the
Management System for Network Information System Security to ensure comprehensive and strict security
management of network information platforms.We have established a three-level information security management structure: "overall planning by the
Trade Secret Protection Committee Construction by the Trade Secret Department and Execution by the Trade
Secret Officer" to ensure that security policies are effectively executed in daily operations. The Trade Secret
Protection Committee is responsible for overall leadership and coordination at the company level to ensure the
comprehensive implementation of trade secret management. The Trade Secret Department develops specific
management plans based on customer needs organizational strategies and department plans. At the same time
the IT Department and the Audit Department provide necessary support. The Trade Secret Officer
comprehensively promotes the implementation of data security protection measures from three dimensions:
personnel environment and information based on the developed plans.Information Security Management Structure
Trade Secret Protection Committee
IT Department Trade Secret Department Audit Department
Supervision and
Technology strategy Trade Secret Officer suggestions
Information-based Personnel-based Environment-based
confidentiality confidentiality confidentiality
Attention of the top management supervision by the management independent
customer confidentiality team inclusion in performance assessment
The Company actively responded to national cybersecurity policies and continued to deepen the research
and practical applications in the field of information security. On the basis of business requirements Topband
started its work around the three core areas of security technology management and operation implemented an
all-round risk management strategy covering the whole process and built a perfect management process for
trade secrets and information security protection. On this basis we strictly classified and managed the access to
confidential information. By formulating a special confidentiality table we clarified the classification storage
and transmission permission of information and used a strict approval process to ensure that unauthorized
personnel could not obtain information illegally thereby ensuring information security in all aspects. As of the
end of the Reporting Period Topband and Vietnam Topband had obtained the ISO 27001 Compliance
certification. At the same time during the Reporting Period the Company made further progress in the
protection of trade secrets. The Company's wholly-owned subsidiary Ningbo Topband was awarded the Ningbo
City-level Trade Secret Protection Demonstration Site in 2024 after acceptance review by the Ningbo Market
Supervision Bureau through on-site spot checks and on-site questions.
83Green Empowerment Innovation Navigates Prudent Governance
Ecological Leadership Compassion Accompanies Sustainable Future
Process of Trade Secret and Information Protection
Environment-based Personnel
confidentiality
* Duties of
* Isolated physical confidentiality
environment Process of * Confidentiality
* Isolated network Trade Secret awareness
environment and
Information
Protection
Customer Assessment &
information improvement
* Confidentiality of * Routine confidentiality
materials and documents statement
* Sample confidentiality * Supervision and assessment
by the Company's management
* Continuous improvement
3.4.1 Information security management measures
Topband formulated an internal system - Management Measures for Information Emergency Response
Plans and built a dynamic governance system of "prediction-defense-response-evolution" based on core
technologies such as vulnerability management and attack surface analysis to ensure the continuity and
effectiveness of the operation of the information security system. The Company conducted an internal security
audit every six months and a comprehensive external audit assessment every year and regularly detected
security vulnerabilities in applications servers network equipment and user terminals. During the Reporting
Period Topband Ningbo Base was awarded the honor of Trade Secret Protection Demonstration Site.In the field of supply chain security Topband assessed the information security of its partners annually
strictly controlled suppliers' fulfillment of responsibilities in accordance with the Annual Review of Supplier
Information Security and the Supplier Security Management Regulations and required the cooperative
third-party organizations to sign confidentiality agreements. In addition the Company regularly organized
quarterly information security training for all employees to strengthen their awareness of the importance of
information security and ensure that everyone could acquire the necessary information security knowledge and
skills. In 2024 the Company had no information security incidents.Topband's information security * Network information security awareness training
* Security knowledge training on phishing emails for enterprise
related training
mailboxes
* Information security training provided by Huizhou Industry and
Information Technology Department
* Shenzhen network protection related training
* Specification for the use of personal computers to prevent leaks
84Topband ESG Report 2024
Indicator Unit 2023 2024
Information security and privacy protection training session Session 2 3
Person-time receiving information security and privacy protection Person-time 80 100
training
Total hours of information security and privacy protection h 100 150
training
Number of information security incidents Piece 0 0
Percentage of business locations with ISO 27000 information % 25 50
security management system certification in the total number of
business locations
3.4.2 Customer privacy protection
Topband strictly abided by the General Data Protection Regulation (GDPR) and the California Consumer
Privacy Act (CCPA) and made every effort to protect the security of customer data so as to ensure operational
compliance and win customer trust. The Company fully considered user privacy requirements in the product
design process adopted the principle of data minimization only collected necessary information and provided
users with the function of "one-click turnoff of data sharing" to protect the legitimate rights and interests of
customers and consumers.In 2024 the Company implemented data encryption transmission for important departments to ensure the
security of sensitive data throughout its life cycle; on the other hand we optimized the network architecture and
strictly implemented the isolation of customer production networks from external networks. All servers provided
to the outside world passed the national level-3 information security protection certification which further
strengthened network security. During the Reporting Period the Company had no incidents of leaking customer
privacy and customer satisfaction reached over 80%.
85Key Performance Indicators (KPIs)
Key Performance Indicators (KPIs)
Environmental issues▼
Indicator Unit 2024 2023 2022
Annual total energy consumption MWh 129865.79 100971.70 91938.48
Renewable energy power generation MWh 4311.47 2239.00 460.74
Gasoline consumption L 40 - -
Diesel consumption L 107431.72 - -
Natural gas consumption m3 141846.00 215907.00 98235.00
Power consumption MWh 127207.85 80764.60 90642.64
Outsourced electricity MWh 122997.90 96573.63 74076.96
Water intake m3 627918 - -
Total water consumption m3 627918 516327 340000
Total discharge of pollutants in water MT No wastewater No wastewater No wastewater
discharged discharged discharged
Total amount of non-hazardous waste t 2639.78 - -
generated
Total amount of waste disposed of t 3143.49 2758.45 1218.32
Total weight of hazardous waste disposed MT 938.78 933.45 815.466
Total weight of non-hazardous waste disposed MT 2204.71 1825.00 402.85
Chemical leakage accident Time 0 0 0
Disposal of hazardous waste % 100% up to standard 100% up to standard 100% up to standard
Up-to-standard noise emissions at the factory % 100% up to standard 100% up to standard 100% up to standard
boundary
Industrial exhaust emission % 100% up to standard 100% up to standard 100% up to standard
Sulfur dioxide emission compliance rate % 100% up to standard - -
Nitrogen oxide emission compliance rate % 100% up to standard - -
Particulate matter emission compliance rate % 100% up to standard - -
Social issues▼
Indicator Unit 2024 2023 2022
R&D headcount Person 2178 2004 1776
Proportion of R&D personnel % 18.75 21.50 21.20
R&D investment RMB ten thousand 95210.53 - -
Proportion of R&D input % 9.07 9.28 8.11
Patents obtained (including foreign patents) Piece 305 351 566
Number of total employees Person 11617 9323 8379
Percentage of female employees in the total % 42.64 41.46 42.27
number of employees of the Company
Percentage of female holding senior % 12.5 15.92 15
management posts
Percentage of female directors % 0 0 11
86Topband ESG Report 2024
Social issues▼
Indicator Unit 2024 2023 2022
Total number of employees aged 30 and below Person 4834 - -
Total number of employees aged 30 to 50 Person 6653 - -
Total number of employees aged 50 and above Person 130 - -
Number of full-time contract employees Person 11521 - -
Number of full-time dispatched employees Person 934 - -
Total number of new employees Person 9350 - -
Employment rate of new male employees % 47.23 - -
Employment rate of new female employees % 47.12 - -
Employment rate of new employees aged 50 and % 12.69 - -
above
Employment rate of new employees aged 30 to 50 % 35.98 - -
Employment rate of new employees aged 30 and % 59.48 - -
below
Employment rate of new employees working in % 42.93 - -
Chinese mainland
Employment rate of new employees working in % 66.75 - -
Hong Kong Macao Taiwan and overseas
Employee turnover rate % 37.15 - -
Male employee turnover rate % 38.35 - -
Female employee turnover rate % 35.41 - -
Turnover rate of employees aged 50 and above % 20.15 - -
Turnover rate of employees aged 30 to 50 % 31.72 - -
Turnover rate of employees aged 30 and below % 43.11 - -
Turnover rate of employees working in Chinese % 38.27 - -
mainland
Turnover rate of employees working in Hong % 31.98 - -
Kong Macao Taiwan and overseas
Percentage of employees covered by collective % 21.11 26.30 29.26
agreements with work terms in all employees of all
regions
Percentage of employees who cover the formal % 0.26 0.32 0.25
election of employee representatives in all
employees of all regions
Days of employee maternity leave Day 178 178 178
Hours of employee breastfeeding leave h/day 1 1 1
Total number of employees entitled to parental Person Male/2780 Male/2348 Male/1882
leave by gender Female/2839 Female/2424 Female/1923
Total number of employees taking parental leave Person Male/373 Male/297 Male/167
by gender Female/177 Female/245 Female/93
Total number of employees who return to work Person Male/333 Male/271 Male/161
during the Reporting Period after parental leave by Female/136 Female/165 Female/89
gender
Return rate of employees on parental leave by % Male/95.59% Male/91.25% Male/96.41%
gender Female/92.19% Female/67.35% Female/95.70%
Total hours of the Company's training related to h; % Newcomer training Newcomer training Newcomer training
human rights policies or procedures and percentage involves a course involves a course involves a course
of employees covered on human rights 2 on human rights 2 on human rights 2
h/session h/session h/session
approximately 24 approximately 24 approximately 24
h/year in total. h/year in total. h/year in total.Covering 100% Covering 100% Covering 100%
employees employees employees
87Key Performance Indicators (KPIs)
Social issues▼
Indicator Unit 2024 2023 2022
Percentage of workplaces where the Company has % 77.78 100 100
conducted employee health and security risk
assessment in all workplaces
Number of factories where the Company has conducted Nr. 7 - -
employee health and safety risk assessments
Percentage of all employees at all locations who are % 100 100 100
represented by a health and safety committee
Proportion of full-time employees undergoing % 100 49.91 80
occupational health and safety examinations
Number of employees at key and special posts Person 1023 - -
Number of employees at key and special posts Person 665 - -
undergoing physical examinations
Percentage of employees at key and special posts who % 100 100 100
receive special medical checkups
Number of occupational hazard factor detections Times/year Not applicable 2 2
conducted in places involving occupational hazards
Number and rate of fatalities due to workplace injuries Person; % 0; 0 0; 0 0; 0
Number and rate of workplace injuries (excluding Person; % 0; 0 0; 0 0; 0
fatalities) with severe consequences
Number of recordable work-related injuries Person 6 7 0
Number of working days lost due to work-related Day 364 - -
injuries
Number of deaths caused by work-related health issues Nr. 0 0 0
Number of recordable cases of work-related health Nr. 0 0 0
issues
Amount of investment in work-related injury insurance RMB ten 461.22 - -
and workplace safety liability insurance thousand
Total hours of safety training h 884 - -
Total person-time receiving safety training Person-time 7944 - -
Number of new employees participating in orientation Person-time 4816 9600 More than 6600
training
Percentage of employees participating in orientation % 41.46 92.40 78.77
training
Achievement rate of safety education for new % 100 100 100
employees
Number of employees certified for qualifications Person 923 1470 More than 700
Number of core key personnel covered by IDP Person More than 200 1260 Approx. 300
(Individual Development Plan)
Percentage of employees who have accepted regular % 100 100 Regular
performance and career development assessment in all performance
employees in all regions 100% career
development
assessment 20%
Percentage of employees who have accepted relevant % 100 100 100
vocational or skill training in all employees in all
regions
Percentage of employees who have accepted diversity % 100 100 100
discrimination or harassment training in all employees
in all regions
Number of participants and hours of skill training for Person; h Person-time of Person-time of Person-time of
professional posts 11842; 4200; 1600;
147852 h about 34400 h about 260 h
Number of management skills training sessions Session 6 9 10
conducted by the Company
Number of skill training sessions conducted within Session 929 499 Approx. 1000
each department sessions
Employee training person-times Person-time More than More than More than 20000
2000020000
Investment in employee training RMB Approx. 2 Approx. 2 Approx. 2 million
million million
88Topband ESG Report 2024
Social issues▼
Indicator Unit 2024 2023 2022
Total employee training hours h Approx. 160000 Approx. 140000 Approx. 160000
Average employee training hours h 10 13 15
Average training hours of employees by gender and h The number of The number of The number of
category average training hours average training hours average training hours
for female employees for female employees for female employees
is about 13 h; is about 12 h; is about 10 h;
The number of The number of The number of
average training hours average training hours average training hours
for male employees is for male employees is for male employees is
about 12 h; about 14.5 h; about 18 h;
The number of The number of The number of
average training hours average training hours average training hours
for professionals is for professionals is for professionals is
about 14 h; about 14 h; about 8 h;
The number of The number of The number of
average training hours average training hours average training hours
for managers is for managers is for managers is
about 8 h. about 9 h. about 6 h.Percentage of total employees of workers from ethnic % 22.42 0.23 14.04
minorities minority groups and vulnerable groups (for
example disabled person) *
Gap of average remuneration both male and female % 74.94 76 77
(percentage of average total hourly wage of female
employees in that of male employees)
Minimum number of weeks that the Company notifies Week 1 1 1
employees and their representatives in advance before
implementing major operational changes that may have a
significant impact on the Company and employees
Total number of employee proposals received by the Nos. 545 475 More than 600
"Employee Experience Platform"
Number of holding of "employee communication meetings" Time 10 7 2
Number of employee feedback issues resolved through Nr. 248 54 29
"employee communication meetings"
Total number of suppliers (at the end of the Reporting Nr. 2224 - -
Period)
Number of suppliers in the Chinese mainland (at the end of Nr. 2031 - -
the Reporting Period)
Number of suppliers in Hong Kong Macao and overseas Nr. 193 - -
regions (at the end of the Reporting Period)
Total number of new suppliers Nr. 862 - -
Percentage of target suppliers who have signed the % 100 100 100
Sustainable Purchase Charter/Supplier Code of Conduct
Percentage of suppliers signing contracts that include % 100 100 100
environment labor and human rights requirements
Percentage of target suppliers who have subjected to % 100 100 100
assessment of corporate social responsibility (CSR)
Percentage of target suppliers who have subjected to on-site % 100 100% for official 100% for official
audit of corporate social responsibility (CSR) manufacturers manufacturers
Percentage of purchasers who have received sustainable % 100 100 100
purchase training in all regions
Proportion of spending on local suppliers % 70 39.30 40
New manufacturers selected according to environmental Nr. 86 - -
standards
Percentage of new suppliers selected according to % 100% for target 100% official 100% official
environmental standards suppliers suppliers suppliers
Number of manufacturers that have conducted EIA Nr. 105 72 110
* Including the number of ethnic minorities and vulnerable groups (such as the disabled) in Shenzhen R&D Center Huizhou Factory Nantong
Factory Ningbo Factory and Romania Factory
89Key Performance Indicators (KPIs)
Social issues▼
Indicator Unit 2024 2023 2022
Number of suppliers identified as having actual Nr. 0 0 0
and potential significant negative impact on the
environment
Percentage of suppliers identified as having % 0 0 0
actual and potential significant negative impact
on the environment and approved for
improvement after assessment
Percentage of suppliers identified as having % 0 0 0
actual and potential significant negative impact
on the environment and decided to terminate
their relationship after assessment
New manufacturers selected according to social Nr. 86 - -
standards
Percentage of new suppliers selected according % 100% for target 100% official 100% official
to social standards suppliers suppliers suppliers
Number of manufacturers that have conducted Nr. 105 - -
SIA
Number of suppliers identified as having actual Nr. 0 0 0
and potential significant negative impact on the
society
Percentage of suppliers identified as having % 0 0 0
actual and potential significant negative impact
on the social and approved for improvement
after assessment
Percentage of suppliers identified as having % 0 0 0
actual and potential significant negative impact
on the social and decided to terminate their
relationship after assessment
Total investment of the Company to voluntary RMB ten 2 - -
activities thousand
Number of employees participated in voluntary Person 250 - -
activities
Total hours of voluntary services provided by h 639.5 - -
employees
Average hours of voluntary services provided h 2.56 - -
by employees
Fund invested by the Company to support rural RMB ten 1 - -
revitalization thousand
Total amount for public welfare and charity RMB ten 6 - -
thousand
90Topband ESG Report 2024
Governance issues▼
Indicator Unit 2024 2023 2022
Number of board members Person 7 7 9
Number of independent directors Person 3 3 3
Proportion of independent directors in the Board of Directors % 42.86 42.86 33.33
Number of meeting(s) of the Board of Directors held Time 12 11 12
Number of general meeting(s) of stockholders held Time 3 4 4
Number of meeting(s) held of the Board of Supervisors Time 7 7 12
Number of meeting(s) of the Strategy Committee Time 2 0 -
Number of meeting(s) of the Audit Committee Time 5 4 4
Number of meeting(s) of the Nomination Committee Time 0 1 -
Number of meeting(s) of the Salary and Assessment Time 2 2 2
Committee
Number of meeting(s) of Independent Directors' Special Time 2 Not established Not established
Committee
Ratio of the annual total remuneration of the highest-earning / 13.7 16.53 18.37
individual to the annual total remuneration median of all
employees
Ratio of the growth rate of the annual total remuneration of the % 94 122 122
highest-earning individual to the growth rate median of the
annual total remuneration of all employees
Reports generated by the whistleblowing program Piece 28 23 19
Corruption incidents Piece 1 2 3
Total number of incidents where employees from the Company Piece 4 2 3
are dismissed or disciplined due to corruption
Total number of incidents where the Company's contracts with Piece 3 5 3
business partners are terminated or not renewed due to
violations related to corruption
Total number of business locations where the Company has Nr. 10 8 2
conducted internal audits/risk assessments on business ethics
issues
Percentage of business locations where the Company has % 100 80 25
conducted internal audits/risk assessments on business ethics
issues in the total business locations
Percentage of the Company's anti-corruption policies and % 100 100 100
procedures communicated to employees
Percentage of the Company's anti-corruption policies and % 100 100 100
procedures communicated to business partners by the
Company
Total number of times of anti-corruption training provided Time 4 - -
Total person-time receiving anti-corruption training Person-time 980 - -
Number of directors receiving anti-bribery and anti-corruption Person 7 7 9
training
Proportion of directors receiving anti-bribery and % 100 100 100
anti-corruption training
Total number of managers receiving anti-bribery and Person 8 - -
anti-corruption training
Percentage of managers receiving anti-commercial bribery and % 66.67 - -
anti-corruption training
91Key Performance Indicators (KPIs)
Governance issues▼
Indicator Unit 2024 2023 2022
Number of employees receiving anti-bribery and Person 972 - -
anti-corruption training
Proportion of employees receiving anti-bribery and % 8.37 - -
anti-corruption training
Number of members of governance bodies to whom Person 7 7 9
the Company's anti-corruption policies and
procedures have been communicated.Percentage of the Company's anti-corruption policies % 100 100 100
and procedures communicated to members of
governance bodies
Number of risk management training provided Time 20 - -
Number of person-time participating in risk Person-time 165 - -
management training
Number of compliance trainings Time 34 - -
Total hours of compliance training h 36.6 - -
Person-time participating in compliance training Person-time 2202 - -
Employee coverage of compliance training % 18.95 - -
Information security and privacy protection training Session 3 2 -
session
Person-time receiving information security and Person-time 100 80 -
privacy protection training
Total hours of information security and privacy h 150 100 -
protection training
Number of information security incidents Piece 0 0 0
Percentage of business locations with ISO 27000 % 50 25 -
information security management system certification
in the total number of business locations
92Index
Index
Index of the Self-regulatory Guidelines for the Companies Listed on the Shenzhen Stock Exchange
No. 17 - Sustainable Development Report (Trial)
Dimension No. Issue Corresponding terms Report section
Environment 1 Combat with climate change Articles 21 to 28 Combat with climate change
2 Pollutant emissions Article 30 Protection of the ecological
homestead
3 Waste disposal Article 31 Protection of the ecological
homestead
4 Ecosystem and biodiversity Article 32 Strengthening of environmental
conservation management
5 Environmental compliance Article 33 Strengthening of environmental
management management
6 Energy utilization Article 35 Efficient utilization of resources
7 Utilization of water resources Article 36 Efficient utilization of resources
8 Circular economy Article 37 Efficient utilization of resources
Society 9 Rural revitalization Article 39 Path of public welfare with love
10 Social contribution Article 40 Path of public welfare with love
11 Innovation-driven Article 42 Being original in R&D to
pursue excellent quality
12 Science and technology ethics Article 43 Being original in R&D to
pursue excellent quality
13 Supply chain security Article 45 Optimization of services to
ensure responsible supply
14 Equal treatment of small and Article 46 Optimization of services to
medium-sized enterprises ensure responsible supply
15 Safety and quality of products Article 47 Being original in R&D to
and services pursue excellent quality
Optimization of services to
ensure responsible supply
16 Data security and customer Data security protection Data security protection
privacy protection
17 Employees Article 50 Protection of rights and interests
and strengthening of care
Health care to promote the
development
Sustainable 18 Due diligence Article 52 Improvement of the governance
development related system
governance Building of a solid compliance
development
19 Stakeholder communication Article 53 Stakeholder communication
20 Anti-bribery and anti-corruption Article 55 Adherence to business ethics
21 Anti-unfair competition Article 56 Building of a solid compliance
development
93Index
Index
GRI index
GRI Disclosure items Report section Page
standards
GRI 2: General Disclosures
2-1 Organizational details About the Report 01
2-2 Entities included in organization's sustainability reports About the Report 01
2-3 Reporting period frequency and contact point About the Report 01
2-6 Activities value chain and other business relationships About Topband 06-11
2-7 Employees Protection of rights and interests and 50-56
strengthening of care 81-87
Key Performance Indicators (KPIs)
2-9 Governance structure and composition Improvement of the governance system 66-71
2-10 Nomination and selection of the highest governance body Improvement of the governance system 66-71
2-12 Role of the highest governance body in overseeing the Responsibility Management 12-15
management of impacts Improvement of the governance system 66-71
2-13 Responsibility authorization for management impact Responsibility Management 12-15
Improvement of the governance system 66-71
2-14 Role of the highest governance body in sustainability About the Report 01
reporting Responsibility Management 12-15
2-15 Conflict of interest Improvement of the governance system 66-71
2-20 Salary determination procedure Improvement of the governance system 66-71
2-22 Statement on sustainable development strategies Responsibility Management 12-15
2-25 Procedure for remedying negative effects Building of a solid compliance development 72-74
2-27 Compliance with laws and regulations Building of a solid compliance development 72-74
2-29 Methods of stakeholder participation Stakeholder communication 15
GRI 3: Material Topics
3-1 Process to determine material topics Assessment of substantive issues 14
3-2 List of material topics Assessment of substantive issues 14
3-3 Management of material topics Assessment of substantive issues 14
GRI 201: Economic Performance
3-3 Management of material topics About Topband 06-11
201-1 Economic value directly generated and distributed About Topband 06-11
201-2 Financial impacts and other risks and opportunities Combat with climate change 21-26
brought about by climate change
GRI 202: Market Presence
3-3 Management of material topics About Topband 06-11
GRI 203: Indirect Economic Impacts
3-3 Management of material topics Path of public welfare with love 63-64
203-1 Infrastructure investment and supporting services Path of public welfare with love 63-64
GRI 204: Procurement Practices
3-3 Management of material topics Optimization of services to ensure responsible 47-49
supply
204-1 Proportion of spending on local suppliers Optimization of services to ensure responsible 47-49
supply 81-87
Key Performance Indicators (KPIs)
GRI 205: Anti-corruption
3-3 Management of material topics Adherence to business ethics 75-77
205-1 Operations assessed for risks related to corruption Key Performance Indicators (KPIs) 81-87
205-2 Communication and training about anti-corruption policies Adherence to business ethics 75-77
and procedures Key Performance Indicators (KPIs) 81-87
94Topband ESG Report 2024
GRI Disclosure items Report section Page
standards
205-3 Confirmed incidents of corruption and actions taken Adherence to business ethics 75-77
Key Performance Indicators (KPIs) 81-87
GRI 206: Anti-competitive Behavior
3-3 Management of material topics Adherence to business ethics 75-77
GRI 301: Materials
3-3 Management of material topics Efficient utilization of resources 27-31
GRI 302: Energy
3-3 Management of material topics Efficient utilization of resources 27-31
302-1 Energy consumption within the organization Efficient utilization of resources 27-31
Key Performance Indicators (KPIs) 81-87
302-4 Reduction of energy consumption Efficient utilization of resources 27-31
Key Performance Indicators (KPIs) 81-87
302-5 Reductions in energy requirements of products and Efficient utilization of resources 27-31
services
GRI 303: Water and Effluents
3-3 Management of material topics Efficient utilization of resources 27-31
Protection of the ecological homestead 32-38
303-1 Interaction between the organization and water (shared Efficient utilization of resources 27-31
resources) Protection of the ecological homestead 32-38
303-2 Management of drainage-related impacts Efficient utilization of resources 27-31
Protection of the ecological homestead 32-38
303-3 Water intaking Efficient utilization of resources 32-38
Key Performance Indicators (KPIs) 81-87
304-4 Drainage Protection of the ecological homestead 32-38
Key Performance Indicators (KPIs) 81-87
304-5 Water consumption Protection of the ecological homestead 32-38
Key Performance Indicators (KPIs) 81-87
GRI 305: Emissions
3-3 Management of material topics Combat with climate change 21-26
305-1 Direct (Scope 1) GHG emissions Combat with climate change 21-26
Key Performance Indicators (KPIs) 81-87
305-2 Energy indirect (Scope 2) GHG emissions Combat with climate change 21-26
Key Performance Indicators (KPIs) 81-87
305-7 Emissions of nitrogen oxides (NOx) sulfur oxides (SOx) Combat with climate change 21-26
and other significant gases Key Performance Indicators (KPIs) 81-87
GRI 306: Waste
3-3 Management of material topics Protection of the ecological homestead 32-38
306-1 Waste generation and significant waste-related impacts Protection of the ecological homestead 32-38
306-2 Management of significant waste-related impacts Protection of the ecological homestead 32-38
306-3 Waste generated Protection of the ecological homestead 32-38
Key Performance Indicators (KPIs) 81-87
306-5 Waste to be disposed of Protection of the ecological homestead 32-38
Key Performance Indicators (KPIs) 81-87
GRI 308: Supplier Environmental Assessment
3-3 Management of material topics Optimization of services to ensure responsible 47-49
supply
308-1 New suppliers selected according to environmental Optimization of services to ensure responsible 47-49
evaluation supply 81-87
Key Performance Indicators (KPIs)
308-2 Negative environmental impacts in the supply chain and Optimization of services to ensure responsible 47-49
actions taken supply
GRI 401: Employment
95Index
GRI Disclosure items Report section Page
standards
3-3 Management of material topics Protection of rights and interests and 50-56
strengthening of care
401-2 Benefits provided to full-time employees that were not Protection of rights and interests and 50-56
provided to temporary or part-time employees strengthening of care
401-3 Parental leave Key Performance Indicators (KPIs) 81-87
GRI 402: Labor/Management Relations
3-3 Management of material topics Protection of rights and interests and 50-56
strengthening of care
402-1 Minimum notice periods regarding operational changes Key Performance Indicators (KPIs) 81-87
GRI 403: Occupational Health and Safety
3-3 Management of material topics Health care to promote the development 57-62
403-1 Occupational health and safety management system Health care to promote the development 57-62
403-2 Hazard identification risk assessment and incident Health care to promote the development 57-62
investigation
403-3 Occupational health services Health care to promote the development 57-62
403-4 Worker participation consultation and communication on Health care to promote the development 57-62
occupational health and safety
403-5 Worker training on occupational health and safety Health care to promote the development 57-62
Key Performance Indicators (KPIs) 81-87
403-6 Promotion of worker health Health care to promote the development 57-62
403-7 Prevention and mitigation of occupational health and Health care to promote the development 57-62
safety impacts directly linked by business relationships
403-8 Workers covered by an occupational health and safety Health care to promote the development 57-62
management system Key Performance Indicators (KPIs) 81-87
403-9 Work-related injuries Health care to promote the development 57-62
Key Performance Indicators (KPIs) 81-87
403-10 Work-related ill health Key Performance Indicators (KPIs) 81-87
GRI 404: Training and Education
3-3 Management of material topics Health care to promote the development 57-62
404-1 Average hours of training per year per employee Key Performance Indicators (KPIs) 81-87
404-2 Programs for upgrading employee skills and transition Health care to promote the development 57-62
assistance programs
404-3 Percentage of employees receiving regular performance Key Performance Indicators (KPIs) 81-87
and career development reviews
GRI 405: Diversity and Equal Opportunity
3-3 Management of material topics Protection of rights and interests and 50-56
strengthening of care 66-71
Improvement of the governance system
405-1 Diversity of governance bodies and employees Protection of rights and interests and 50-56
strengthening of care 66-71
Improvement of the governance system 81-87
Key Performance Indicators (KPIs)
405-2 Ratio of basic salary and remuneration of male employees Protection of rights and interests and 50-56
to female employees strengthening of care 81-87
Key Performance Indicators (KPIs)
GRI 406: Non-discrimination
3-3 Management of material topics Protection of rights and interests and 50-56
strengthening of care
406-1 Incidents of discrimination and corrective actions taken Protection of rights and interests and 50-56
strengthening of care
GRI 407: Freedom of Association and Collective Bargaining
3-3 Management of material topics Protection of rights and interests and 50-56
96Topband ESG Report 2024
GRI Disclosure items Report section Page
standards
strengthening of care
GRI 408: Child Labor
3-3 Management of material topics Protection of rights and interests and 50-56
strengthening of care
GRI 409: Forced or Compulsory Labor
3-3 Management of material topics Protection of rights and interests and 50-56
strengthening of care
GRI 413: Local Communities
3-3 Management of material topics Path of public welfare with love 63-64
GRI 414: Supplier Social Assessment
3-3 Management of material topics Optimization of services to ensure responsible 47-49
supply
414-1 New suppliers selected according to social standards Optimization of services to ensure responsible 47-49
supply 81-87
Key Performance Indicators (KPIs)
414-2 Negative social impacts in the supply chain and actions Optimization of services to ensure responsible 47-49
taken supply
GRI 416: Customer Health and Safety
3-3 Management of material topics Being original in R&D to pursue excellent 40-46
quality 47-49
Optimization of services to ensure responsible
supply
GRI 418: Customer Privacy
3-3 Management of material topics Data security protection 78-80
Key Performance Indicators (KPIs) 81-87
418-1 Substantiated complaints involving invasion of customer Data security protection 78-80
privacy and loss of customer data Key Performance Indicators (KPIs) 81-87
97CO-INNOVATING A SMARTER FUTURE
Shenzhen Topband Co. Ltd.Stock code: 002139.SZ
Topband Industrial Park Shiyan Sub-district
Tel.: 0755-2765 1888
Bao'an District Shenzhen China
https://www.topband.com.cn
Email: topband@topband.com.cn
Topband
WeChat Official
Account of Topband
98
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