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东山精密:2024年环境、社会与公司治理(ESG)报告(英文版)

深圳证券交易所 05-27 00:00 查看全文

2024 ESG Report of DSBJ

Suzhou Dongshan Precision

Manufacturing Co. Ltd.

2024 Environmental Social and Governance

(ESG) Report

April 20252024 ESG Report of DSBJ

Table of Contents

Report Preparation Instructions ..................... 1

Message from the CEO ................................ 4

About DSBJ .......................................... 6

Sustainable Development Governance .................. 9

Framework of Sustainable Development Governance ..... 9

Sustainable Development Strategy ................... 11

Communication with Stakeholders .................... 12

Materiality Analysis ............................... 14

1. Excellent Governance for Moving Towards a New Journey of High-Quality Development

22

1.1 Corporate Governance ........................... 22

1.2 Business Ethics and Anti-Corruption ............ 30

1.3 Digital Intelligence Transformation ............ 35

1.4 Information Security and Privacy Management .... 37

2. Collaboration for Mutual Benefit to Build a Sus.. 43

2.1 Governance ..................................... 43

2.2 Strategy and Management Mechanism .............. 44

2.3 Impact Risk and Opportunity Management ......... 54

2.4 Indicators and Targets ......................... 54

3. Insisting on Quality for Continuous Improvement of Product Quality and Competitiveness

56

3.1 Driven by Innovation ........................... 56

3.2 Quality Priority ............................... 63

3.3 Professional Services .......................... 77

4. Advancing a Clean and Low-Carbon Production Sys.. 81

4.1 Environmental Management ....................... 81

4.2 Addressing Climate Change ...................... 84

4.3 Resource Utilization and Circular Economy .... DSBJ

4.4 Pollution Prevention and Ecosystem Protection .. 99

5. Working Together for a Better Future Based on P. 108

5.1 Labor and Human Rights Management ............. 108

5.2 Human Capital Development ..................... 122

5.3 Community Construction ........................ 145

Appendix .......................................... 148

Appendix I: Key Performance Table ................. 148

Appendix II: Index of Indicators .................. 156

Note:

This document is a translated version of the Chinese ESG Report 2024 ("2024 年 ESG 报告"). In

case of any discrepancies the ESG Report 2024 published in the Chinese version shall prevail. The

full Chinese ESG Report 2024 is available at www.cninfo.com.cn.2024 ESG Report of DSBJ

Report Preparation Instructions

The 2024 Environmental Social and Governance Report of Suzhou Dongshan Precision

Manufacturing Co. Ltd. (the “Report”) aims to disclose the Company’s philosophy management

practices and key performance in sustainable development to stakeholders responding to

stakeholders’ expectations and concerns adequately.Scope and Boundaries of the Report

The Report mainly discloses information and key performance of Suzhou Dongshan Precision

Manufacturing Co. Ltd. and its branches and subsidiaries in fulfilling environmental social and

governance responsibilities in 2024. Unless otherwise specified for certain information the policies

statements and data in the Report cover the actual business scope of Suzhou Dongshan Precision

Manufacturing Co. Ltd. and its branches and subsidiaries which are consistent with those in the

annual report.Reference in the Report

For ease of presentation and reading DSBJ and its branches and subsidiaries are referred to by

the abbreviations listed in the table below throughout the Report.Company name Abbreviation

Suzhou Dongshan Precision Manufacturing Co. Ltd. DSBJ the Company we us or our

Multi-Fineline Electronix Inc. MFLEX

Multek Group (Hong Kong) Limited Multek

MFLEX Suzhou Co.Ltd. MFLEX Suzhou

MFLEX Yancheng Co.Ltd. MFLEX Yancheng

Multek Industries Ltd. Multek Industries

Multek Electronics Ltd. Multek Electronics

Multek Technology (Zhuhai) Co. Ltd. Multek Technology

Suzhou Dongyue New Energy Technology Co. Ltd. Suzhou Dongyue

Multek China Ltd. Multek China

12024 ESG Report of DSBJ

Yancheng Dongshan Precision Manufacturing Co. Ltd. Yancheng Dongshan

Yancheng Mutto Optronics Technology Co. Ltd. Mutto Optronics

Suzhou Rf Top Electronic Communication Co. Ltd. Rf Top Electronic

DSBJ Pte.Ltd. (DSBJ Singapore) DSG

Suzhou JDI Electronics Inc JDI Electronics

Suzhou Chengjia Precision Manufacturing Co. Ltd. Suzhou Chengjia

Dongguan Dongshan Precision Manufacturing Co. Ltd. Dongguan Dongshan

Yancheng Dongchuang Precision Manufacturing Co. Ltd. Yancheng Dongchuang

Suzhou Yongchuang Communication Technology Co. Ltd. Yongchuang Technology

Reporting Period

The period is from January 1 2024 to December 31 2024 and extends appropriately to

previous and subsequent years.Basis for Preparation

GRI Sustainability Reporting Standards (GRI Standards) from Global Sustainability Standards

Board; Guidelines No.17 on Self-Regulation of Listed Companies – Sustainability Report (Trial)

from Shenzhen Stock Exchange (SZSE); Guidelines No.3 on Self-Regulation of Listed Companies

– Preparation of Sustainability Report from Shenzhen Stock Exchange (SZSE); ISO 26000:

Guidelines on Social Responsibility (2010) from the International Organization for Standardization;

and Sustainable Development Goals of the United Nations (SDGs).Principles for Preparation

This Report is subject to the following four principles namely “Materiality” “Impartiality”

“Quantification” and “Consistency”.* Materiality. The Company conducts a materiality assessment to identify and evaluate ESG

topics that are material to our business internal and external stakeholders to focus the Report

on relevant disclosure. For a more detailed materiality assessment process and results please

refer to the “Sustainable Development Management” section of the Report.* Impartiality. The content of the Report reflects objective facts providing unbiased disclosure

22024 ESG Report of DSBJ

of both positive and negative information related to the Company and impartially stating the

Company’s efforts across various aspects of ESG. During the reporting period we have

identified no significant negative events with a material impact that should have been disclosed.* Quantification. In this Report the Company discloses ESG quantitative performance

indicators and establishes quantitative performance targets where applicable. The measurement

standards methods assumptions and/or calculation tools for key performance indicators in

this Report as well as the sources of conversion factors used have been explained in the

respective sections where applicable.* Consistency. This Report maintains consistency in the statistical and disclosure methods of the

same indicators across different reporting periods. Any changes in statistical and disclosure

methods will be fully explained in the report notes facilitating meaningful analysis and

evaluation by related parties.Source of Information

All information data used in this Report are derived from the Company’s official documents

statistical reports financial reports and information summarized and reviewed by the Company’s

responsible management department. In case of any discrepancies between the relevant financial

data and the Company’s annual report the annual report shall prevail. Unless otherwise specified

the currency amounts mentioned in this Report are denominated in Renminbi (RMB).Reliability Assurance

The Company undertakes that the content of this Report contains no false records misleading

statements or major omissions and the Company is responsible for the truthfulness and accuracy

of the content.Access to the Report

Welcome to visit the Company’s official website at www.dsbj.com to access the electronic

version of the Report.

32024 ESG Report of DSBJ

Message from the CEO

Looking back at the past and focusing on the present. Over the decades ESG has gradually

become a common language for all humanity. It connects every soul that loves the Earth and pursues

dreams creating more opportunities for connection and cooperation among people on this global

stage. Therefore everyone is able to rise to the challenges deliberately and embrace life freely. In

the business field ESG has emerged as an important force driving industrial transformation and

advancing global sustainable development.DSBJ always adheres to the corporate spirit of “Breakthrough Diversity Simplicity andJourney” Our industrial presence continues to expand from communication device components to

precision components for consumer electronics and core components for new energy vehicles.Every growth and breakthrough is inseparable from our dedication to our original intention which

is to uphold long-term strategic thinking value both economic and social benefits of consistency

and integrate sustainable development concepts into corporate operations. We continue to deepen

our work in the social responsibility field and have achieved outstanding performance. Today our

products and services have been sold to 48 countries and regions around the world.Amid steady growth in assets and revenue we pay more attention to prudent operations and

actively make strategic investments in the green industry. Through enhanced governance low-

carbon practices and resource optimization we collaborate with stakeholders to deeply empower

the whole industry chain and promote sustainable development in the industry. On one hand we

deploy digitalized and intelligent factories to streamline production processes and improve energy

efficiency; on the other hand we actively delve into the upstream industry chain to strengthen the

Company’s ESG management across the entire value chain thereby ensuring efficient and reliable

product solutions along with perfect product delivery. We also actively embrace the trend of artificial

intelligence development to fully promote the application of AI technology aligned with demand-

driven outcomes in smart manufacturing scenarios.In addition the Company has always attached great importance to the interests of customers

employees society and other stakeholders effectively fulfilling its corporate social responsibilities

42024 ESG Report of DSBJ

and promoting the co-creation of social value. Our commitment remains unchanged.Despite new changes in the global manufacturing industry we firmly believe that today’s

efforts will yield extraordinary achievements. DSBJ remains steadfast in its responsibilities and

missions. We pledge to contribute all our strength to advancing green transitions fostering industry

excellence and fulfilling social responsibility.Director and CEO of DSBJ

SHAN Jianbin

52024 ESG Report of DSBJ

About DSBJ

Headquartered in Suzhou Jiangsu Province Suzhou Dongshan Precision Manufacturing Co.Ltd (stock code: 002384.SZ) is committed to developing into a core component supplier forintelligent interconnection and global connectivity. With the mission of “building a better connectedworld for tomorrow” and the vision of “building a 100-billion advanced and intelligentmanufacturing platform” the Company has gradually formed three major segments namely

electronic circuit photoelectric display and precision manufacturing by expanding and optimizing

its main businesses through internal development and external acquisition. In the field of electronic

circuits according to the research report data from Prismark the Company has ranked second in

flexible printed circuit boards (FPC) and third in printed circuit boards (PCB) globally in terms of

revenue for several consecutive years. In 2024 the Company was ranked 399th among the top 500

private enterprises in China and 270th among the top 500 private manufacturing enterprises in China

boasting over 70 wholly-owned holding and equity-invested companies.Leveraging its excellent technological innovation capabilities and forward-looking global

layout the Company has been exploring and innovating steadfastly. We have established a dual-

wheel drive strategy with consumer electronics and new energy as the two core tracks seizing the

new market opportunity brought by new energy while continuously improving the quality and

efficiency of the consumer electronics business. We also continuously deepen our efforts in

emerging market sectors to provide comprehensive solutions and empowerment services to global

customers. In the future we will adopt a more open posture to accelerate the advancement of

intelligent manufacturing to a higher level driving industrial chain upgrades through technological

empowerment to lead innovative development in the industry.

62024 ESG Report of DSBJ

Annual Revenue: RMB 36.77 billion; Business Presence: 48 countries and regions worldwide.

72024 ESG Report of DSBJ

The Company is dedicated to providing comprehensive electronic

circuit(PCB) products and services for industry-leading customers. We

offer our customers one-stop solutions involving design R&D and

Electronic manufacturing of electronic circuit (PCB) products according to

circuit customized requirements for different downstream end products. Our

products are widely used in mobile phones computers AR/VR wearable

devices servers communication equipment new energy vehicles and

energy storage industrial control equipment AI hardware etc.The Company is a well-known manufacturer of touch display modules and

LED display components in the industry. Among our products the touch

panel products are mainly used in the medium and large-size display field

including products such as laptops tablets smart home and on-board

Photoelectric

displays; the LCM products are mainly used in the small and medium-size

display

display field including products like smartphones and tablets; and the LED

products are widely used in indoor and outdoor small-pitch high-definition

display screens. The Company is actively expanding the application of

photoelectric display products in the vehicle domain.The Company mainly provides precision metal structural parts and

components for customers in the new energy vehicles energy storage and

communication equipment fields. The main products include functional

Precision

structural parts for new energy vehicles such as heat sinks domain

manufacturing

control/electronic control housings body-in-white battery structural parts

etc. and structural parts and components for mobile communication base

stations such as antennas filters etc.

82024 ESG Report of DSBJ

Sustainable Development Governance

Framework of Sustainable Development Governance

In order to better integrate sustainable development demands with the Company’s development

strategies and operation and management activities DSBJ continuously improves its environmental

social and corporate governance systems. The Company has clarified management concepts and

principles authority scope work tasks decision-making processes and parliamentary procedures

incorporating sustainable development management into the Company’s governance framework

thereby establishing a sustainable development management system covering the Board of Directors

management functional departments and business segments. The Company has continuously

enhanced its risk control and value creation capabilities in the sustainable development aspect.The Company’s Board of Directors is the highest authority and decision-making body

responsible for managing economic environmental and social topics. The professional skills and

capabilities of the Board of Directors in supervising ESG-related impacts risks and opportunities

are detailed in the “Corporate Governance/Diversified Structure of the Board of Directors” chapter

of this Report. The Board of Directors authorizes the operating management to establish an ESG

management organizational structure at three levels including the Sustainable Development

Administration Committee the Sustainable Development Administration Office and the ESG

Working Group. The Sustainable Development Administration Committee as the executive body

for ESG management is responsible for assessing and managing ESG opportunities and risks

determining the materiality of ESG issues and incorporating them into business considerations

establishing ESG strategies goal plans and regular reviews supervising and guiding the

implementation of ESG topics by the Company etc. The Sustainable Development Administration

Office as the coordinating body for ESG management is mainly responsible for daily

communication and conference organization between the Sustainable Development Administration

Committee and the ESG Working Group the coordination and promotion of ESG topic management

and implementation as well as ESG-related information disclosure etc. The ESG Working Group

as the specific executive body for ESG work is mainly responsible for promoting the

implementation and execution of ESG topics. The performance of relevant departments is linked to

92024 ESG Report of DSBJ

ESG performance indicators and reward and penalty measures will be implemented according to

the results of annual assessments.During the reporting period the Company deliberated major ESG issues such as materiality

assessment and achievement of goals on ESG issues while organizing multiple ESG-specific

training sessions to enhance employees’ understanding of the Company’s ESG management

strategies and related work thereby better promoting the implementation of ESG efforts.Framework of Sustainable Development Governance

Board of * Participate in the deliberation and decision-

Governance/Supervision

Directors making of major ESG issues of the Company

Sustainable * Identify assess and manage ESG risk

Development opportunities

Administration * Determine the materiality of ESG issues and

Committee incorporate them into business considerations

* Deliberate and approve the Company’s ESG-

related strategies policies and systems

Management objectives plans and programs etc

* Evaluate overall ESG performance and provide

recommendations

Sustainable * Coordinate the management and

Development implementation of ESG issues

Administration * Coordinate ESG-related information

Office disclosure

ESG Working * Conduct centralized management of various

Group ESG topics and promote relative strategy

development daily management and

Execution Level

implementation

* Monitor the implementation of ESG topics and

report information on a regular basis

1 02024 ESG Report of DSBJ

Sustainable Development Strategy

Under the mission of “building a better connected world for tomorrow” DSBJ integrates

sustainable development with the Company’s strategies and aligns with the United Nations

sustainable development goals (SDGs) and industry development trends to systematically plan the

Company’s sustainable development pathway. By actively managing identified ESG impacts risks

and opportunities the Company is embarking on a new journey towards high-quality development

and green transformation.

112024 ESG Report of DSBJ

Insistence on quality

Outstanding governance

Collaboration for win-win situation

Friendly to the Environment

People Orientation

Communication with Stakeholders

Attaching importance to the expectations and demands of various stakeholders DSBJ has

established a smooth communication mechanism for all stakeholders under which we conduct

regular communication with stakeholders and respond to them with an open attitude thereby

establishing long-term cooperative relationships with all parties based on mutual trust.Key stakeholders Expectations and demands Communication method

Compliance and risk * Special meetings or reports *

management * Policy consultation feedback

Government and

Business ethics and anti- * Official visit *

regulatory agencies

corruption * Compliance regulatory

* Serving national major inspections

1 22024 ESG Report of DSBJ

Key stakeholders Expectations and demands Communication method

strategies

* Support local development

* Information disclosure

* General Meeting of

Shareholders

* Sustainable and stable

* Financial reports and interim

returns

Shareholders and announcements

* Information transparency

investors * Investor surveys hotlines

* Investor relations

online Q&A etc.management

* Performance presentation

meeting and other

communication activities

* Trade unions and workers’

* Employee rights protection congress

(including occupational * Employee training activities

Employee health and safety) and communication

* Employee training and * Internal information exchange

development platform

* Employee complaint channel

* Product quality and safety

* Product and service * Customer relationship

innovation management

Customer

* Business continuity * Customer review

* Information and data * Customer satisfaction survey

security

* Sustainable supply chain * Supply chain audit

Suppliers and * Responsible mining * Open cooperation

partners * Industry collaboration and * Communication

development * Industry exchange conference

* Product quality and safety

* Environmental impact * Media interaction

Community and management * Information disclosure

public * Public welfare and charity * Charitable projects

* Community * Volunteer activities

communication and

1 32024 ESG Report of DSBJ

Key stakeholders Expectations and demands Communication method

development

Materiality Analysis

Materiality analysis helps enterprises identify and assess potential risks providing support for

decision-making and management. In 2024 DSBJ updated its analysis methods according to the

latest disclosure standards including but not limited to the GRI Sustainable Development Reporting

Standards (GRI Standards) the International Financial Reporting Standard on Sustainability

Disclosure 1 - General Requirements for Disclosure of Sustainability-related Financial Information

(IFRS S1) and the Guidelines No.17 on Self-Regulation of Listed Companies – Sustainability

Report (Trial) from Shenzhen Stock Exchange. This update involved research and assessment from

two dimensions: “Impact Materiality” (the materiality of impacts on economic environmental and

social sustainability) and “Financial Materiality” (the materiality of impacts on the Company’s

finances). Through the research and assessment we comprehensively reviewed various concerns

and their financial impacts on the Company selected ESG key topics with high impacts that would

be highlighted in the report and continuously improved ESG management to better meet

stakeholders expectations and demands.We compile a list of ESG topics based on the analysis of internal and external

development trends to identify important general and industry-specific topics

Identification in which the materials we used for reference include authoritative domestic and

of ESG international sustainability reporting guidelines and standards mainstream

topics domestic and international ESG rating systems sustainable development topics

focused by industry peers and issues of common concern for internal and

external stakeholders.

1 42024 ESG Report of DSBJ

We conduct research on topics among internal and external key stakeholders

Research under the principle of “double materiality” where we build the 2024 materiality

among topic matrix through the “Impact Materiality Assessment” and the “Financialstakeholders Materiality Assessment” so as to determine this year’s materiality topics and

their priorities.The Company’s Sustainable Development Administration Committee

Topic determines the ESG topics of high importance by reviewing the screening and

determination analysis results with reference to suggestions from internal management and

and external experts. Key information on materiality topics will be highlighted in

disclosure this Report such as their governance strategy risk and opportunity

management Indicators and Targets etc.

1 52024 ESG Report of DSBJ

Material topics matrix of DSBJ Environmental protection of biodiversity

Importance of impact on economic Community engagement (including public

environmental and social sustainability voluntary service)

Importance of impact on the Company’s finances Safety production and operation

Governance dimension Customer relationship management

Environment dimension Responsible mining

Society dimension Sustainable supply chain

Low Employee training and development

High Addressing climate change

Emissions and waste management R&D and innovation

Serving national major strategies Product quality and safety

Industry collaboration and development Information and data security

Employee equality and diversity Business ethics and anti-corruption

Digital transformation Labor Management (including occupational

health and safety)

Water resource management Corporate governance

162024 ESG Report of DSBJ

* Analysis on Impact Risk and Opportunity of Materiality Topics

Materiality Scope of Impact Impacted Cycle Risk and Opportunity Impact Report

Topics

Upstre Operatio Downs Short- Mid- Long- Level Location

am n tream term term term

Product √ √ √ √ √ √ * There are risks related to design and research and Negative 3.2 Quality

quality and development production and process as well as impact: Priority

safety regulatory and compliance risks. If the Company fails Very

to respond effectively it may face regulatory important;

penalties entry restrictions and a decline in market Positive

trust. impact:

* We will increase customer trust enhance market Very

share and gain competitive advantages by important

implementing high standards of safety and quality

practices.Business √ √ √ √ √ √ * Commercial bribery and corruption incidents may Negative 1.2 Business

ethics and bring significant impacts on the Company’s economic impact: ethics and anti-

anti- costs legal consequences operational risks and Very corruption

corruption goodwill. important;

* Anti-bribery and anti-corruption work helps Positive

enterprises establish sound internal management impact:

172024 ESG Report of DSBJ

Materiality Scope of Impact Impacted Cycle Risk and Opportunity Impact Report

Topics

Upstre Operatio Downs Short- Mid- Long- Level Location

am n tream term term term

systems and processes optimize internal Generally

management and improve management efficiency important

and transparency.R&D and √ √ √ √ √ * Investment in research and development may bring Negative 3.1 Driven by

innovation higher and unpredictable financial returns due to impact: Innovation

technological risks policy and regulatory risks Generally

market competition risks and internationalization important;

challenges; Positive

* Fostering new quality productive forces through impact:

technological innovation and forward planning is Very

conducive to maintaining long-term market important

competitiveness.Information √ √ √ √ √ √ * There are multidimensional risks such as Negative 1.4

security and technological risks human risks and management impact: Information

privacy and operational risks. Improper management of key Very security and

protection data and customer privacy will lead to data breaches important; privacy

resulting in compliance risks or reputational damage Positive management

which in turn lowers customer trust; impact:

* By safeguarding data security we can enhance the Generally

1 82024 ESG Report of DSBJ

Materiality Scope of Impact Impacted Cycle Risk and Opportunity Impact Report

Topics

Upstre Operatio Downs Short- Mid- Long- Level Location

am n tream term term term

confidence of our international customers to important

cooperate and develop more high-end markets.Labor √ √ √ √ * Improper management of labor and human rights Negative 5.1

managemen issues such as forced labor discriminatory practices impact: Management

t (including and occupational health and safety in supply chain Very of labor and

occupationa management and company operations may lead to important; human rights

l health and compliance risks reputational damage and employee Positive issues

safety) turnover. impact:

Generally

important

Human √ √ √ √ * Issues in human capital development such as Negative 5.2 Human

capital insufficient employee training and development impact: capital

developmen improper performance management and Generally development

t organizational culture risks may lead to risks related important;

to strategic and organizational change as well as talent Positive

loss risks; impact:

* A comprehensive employee learning and Very

development and talent cultivation system will important

strongly support the achievement of the Company’s

192024 ESG Report of DSBJ

Materiality Scope of Impact Impacted Cycle Risk and Opportunity Impact Report

Topics

Upstre Operatio Downs Short- Mid- Long- Level Location

am n tream term term term

strategic goals enhance the Company’s brand and

market competitiveness and contribute to the

Company’s long-term and stable development.Addressing √ √ √ √ √ √ * Physical risks and transition risks arising from climate Negative 4.2 Addressing

climate change may result in loss of owned assets increased impact: climate change

change costs due to supply chain disruptions and changes in Important;

market preferences affecting product strategies; Positive

* We may discover new business directions and form impact:

new product solutions in the green transition and Important

market demand changes caused by climate change;

we may yield a stable power supply and energy-

saving benefits through enhanced energy

management.Sustainable √ √ √ √ √ * Risks in the supply chain quality supply compliance Negative 2.supply and ESG issues may lead to shortages of raw impact: Collaboration

chain materials business disruptions cost increases and Very for mutual

delivery delays thereby affecting business continuity important; benefit to build

and market competitiveness; Positive a sustainable

* Strengthening sustainable supply chain construction impact: supply chain

2 02024 ESG Report of DSBJ

Materiality Scope of Impact Impacted Cycle Risk and Opportunity Impact Report

Topics

Upstre Operatio Downs Short- Mid- Long- Level Location

am n tream term term term

can enhance supply chain resilience ensure business Very

continuity reduce operational costs strengthen important

market competitiveness and attract long-term

investors. Additionally enhancing supply chain

collaboration can promote the application of new

technologies and the Company’s transformation and

upgrade.Responsible √ √ √ √ * If mineral sources do not meet responsible sourcing Negative

mining standards particularly minerals such as tantalum tin impact:

tungsten and gold (3TG) it may result in compliance Very

risks reputational damage customer losses and even important;

supply chain disruptions. Positive

impact:

Generally

important

2 12024 ESG Report of DSBJ

1. Excellent Governance for Moving Towards a New Journey of High-

Quality Development

Sustainable Development Goals (SDGs) of the United Nations

1.1 Corporate Governance

1.1.1 Standardized Governance

In strict accordance with the requirements of laws regulations and normative documents such

as the Company Law of the People’s Republic of China the Securities Law of the People’s Republic

of China the Guidelines No. 1 on Self-regulatory Supervision for Companies Listed on Shenzhen

Stock Exchange - Standardized Operation of Companies Listed on the Main Board the Code of

Corporate Governance for Listed Companies the Company has established a complete legal

governance structure and modern organizational management system. We have formed a

governance system and mechanism with a clear division of powers and responsibilities among the

power decision-making supervision and execution bodies that can ensure coordinated operation

effective checks and balances and continuous optimization of management documents and internal

processes at all levels. Through these initiatives the Company is constantly improving the

governance standardization and effectiveness to strengthen the foundation for stable development.* Governance structure

The Company has established a corporate governance structure consisting of the General

Meeting of Shareholders the Board of Directors the Board of Supervisors and the Management.

222024 ESG Report of DSBJ

The General Meeting of Shareholders exercises the voting rights on major issues such as the

Company’s business policies investment plans and the election of directors and supervisors in

accordance with laws. The Company convenes and holds the general meeting of shareholders in

strict accordance with relevant laws and regulations and the requirements of the Articles of

Association and the Parliamentary Procedures for the General Meeting of Shareholders to ensure

that all shareholders enjoy the equal status and have the equal right to be informed and make

decisions on major issues hence effectively safeguarding the legitimate rights and interests of all

shareholders. The Board of Directors is responsible to the General Meeting of Shareholders and

exercises the Company’s management rights in accordance with the laws. The Board of Directors

has four specialized committees namely the Strategy Committee the Audit Committee the

Nomination Committee and the Remuneration and Appraisal Committee which perform their duties

in accordance with the Articles of Association and the authorization from the Board of Directors to

provide professional opinions and reference suggestions for decisions of the Board of Directors. All

four specialized committees have employed independent directors and in the Audit Committee the

Nomination Committee and the Remuneration and Appraisal Committee the independent directors

have constituted the majority of committee members and serve as the chairman in order to ensure

that decesions are made professionally and independently. The Board of Supervisors as the

supervisory body is responsible to the General Meeting of Shareholders and strictly fulfills its duties

in accordance with the Articles of Association the Parliamentary Procedures for the General

Meeting of Shareholders and other systems. The Board of Supervisors is responsible for supervising

the Company’s financial position fundraising management and the performance of the Company’s

directors and senior officers as well as expressing opinions on major issues so as to the Company’s

standardized operation. The Board of Supervisors consists of 3 supervisors including 2 employee

representative supervisors. For detailed information on the corporate governance structure

governance mechanism equity structure controlling shareholders and de facto controllers please

refer to the DSBJ Annual Report 2024.

2 32024 ESG Report of DSBJ

Structure of corporate governance Strategy Committee

General Meeting of Shareholders Audit Committee

Board of Supervisors Remuneration and Appraisal Committee

Board of Directors Nomination Committee

Management

The Company selected and appointed directors supervisors and senior officers in strict

compliance with the established procedures with no member changes in 2024. In accordance with

the regulations of Rules for the General Meeting of Shareholders of Listed Companies Management

Measures for Independent Directors of Listed Companies and others the Company has formulated

Rules of Procedure for General Meetings of Shareholders Rules of Procedure for Specialized

Meetings of Independent Directors Rules of Procedure for the Board of Directors Rules of

Procedure for the Board of Supervisors etc. When convening meetings of the General Meeting of

Shareholders Board of Directors and Board of Supervisors it strictly adheres to the voting matters

and procedural requirements to effectively safeguard the legitimate rights and interests of the listed

companies and all shareholders.The Company held a total of 6 general meetings of shareholders throughout the year with 35

proposals passed.The Company held a total of 10 meetings of the Board of Directors throughout the year with 68

proposals passed.The Company held a total of 8 meetings of the Board of Supervisors throughout the year with

35 proposals passed.

2 42024 ESG Report of DSBJ

* Diversified structure of the Board of Directors

DSBJ acknowledges and firmly believes that the increasingly diversified structure of the Board

of Directors is a crucial factor in maintaining the Company’s competitive advantage and sustainable

development. The Company has implemented a diversity policy for the Board of Directors. When

recommending candidates to join the Board of Directors the Nomination Committee will fully

consider the diversity factors and adopt a rigorous selection procedure to maintain an appropriate

and balanced structure of the Board of Directors in terms of capabilities skills experience gender

age and cultural and educational backgrounds thereby ensuring that the Board of Directors can

make decisions in a scientific and effective manner.The Company currently has 9 members in the Board of Directors including 1 female director

accounting for 11.1% and 3 independent directors accounting for 33.3%. Members of the Board of

Directors have possessed interdisciplinary expertise and extensive industry experience covering

areas such as management risk control financial accounting law and international operations with

66.7% holding master’s or doctoral degrees. One independent director in the Audit Committee is an

accounting professional and some board members have rich experience in risk prevention and

control which means they can effectively assist the Company in identifying preventing mitigating

and managing risks. Each member of the Board of Directors has performed their duties to the best

of their abilities actively promoting the efficient and standardized operation of the Company. In

2024 in order to continuously improve the Company’s governance and decision-making ability the

Company led independent directors to visit the MFLEX Suzhou factory Kunshan factory Yancheng

Industrial Park and Suzhou Rf Base to have them gain an in-depth understanding of the Company’s

business development.

1.1.2 Risk Management and Internal Control

In strict accordance with the requirements of the Company Law of the People’s Republic of

China the Basic Norms of Enterprise Internal Control and its supporting guidelines as well as the

regulatory requirements on internal control from the China Securities Regulatory Commission and

stock exchanges DSBJ continuously promotes the construction evaluation and supervision of the

risk management and internal control system and the orderly implementation of various special

2 52024 ESG Report of DSBJ

audits and key project audits. In this way we can ensure the effective operation of the system to

safeguard the Company’s sustainable and stable development. In addition the Company has

enhanced employees’ awareness of internal control risks and strengthened internal control

management capabilities through internal control training forming a risk prevention pattern with

full participation so as to continuously improve the Company’s standardized operation capabilities.During the reporting period by continuously improving the risk prevention mechanism the

Company has formed a stable risk management structure and work system that meets the

Company’s business scale and operational management demands. Through continuous optimization

of the risk management assessment process we could timely identify and assess risk sources

existing in the Company’s operations and improve and supervise risks closely related to the

Company’s operations such as investment risks business risks operational risks and risks relative

to sustainable development thereby achieving a closed-loop management to control the overall risks

at an acceptable level. The Company promptly incorporates major ESG risks and opportunities into

the risk review and business planning process for taking full consideration of them in the Company’s

operational plan thereby controlling or mitigating risks in a better way and seeking growth and

transformation opportunities accordingly. We have paid close attention to global trade policy trends

based on the Company’s overseas strategic layout regularly assessing and providing early warnings

on overseas business risks and establishing and improving the internal control system for overseas

businesses so as to support the Company’s globalization strategy.Risk identification Risk assessment Risk control

Identifying risks * Risk probability assessment Taking risk control measures

comprehensively by * Risk impact assessment from the perspectives of risk

analyzing the Company’s * Risk level determination avoidance risk transfer and risk

activities and business reduction based on risk levels

background with focuses and company reality

on key businesses areas

and operational links.

2 62024 ESG Report of DSBJ

1.1.3 Protection of Investors’ Rights and Interests

* Conducting Information Disclosure in a Rigorous and Standardized Manner

In strict accordance with regulatory documents such as the Securities Law of the People’s

Republic of China Measures for the Administration of Information Disclosure by Listed Companies

as well as the Articles of Association and Information Disclosure Management System the Company

under the principle of “truth accuracy completeness and timeliness” in information disclosure has

diligently fulfilled its information disclosure obligations and continuously presents information of

the Company’s operations to investors from multiple levels perspectives and angles based on

investors’ demands in order to enhance the quality and effectiveness of information disclosure. In

2024 the Company revised the information disclosure management policy and formulated and

published information disclosure management regulations issuing a total of 4 periodic reports and

105 interim announcements further enhancing the quality and transparency of information

disclosure. During the reporting period the Company’s disclosed information has contained no false

records misleading statements significant omissions or other improper disclosures. At the same

time the Company has also kept a close eye on the public opinion environment and market trading

conditions to effectively protect the legitimate rights and interests of investors.* Enhancing Interaction and Mutual Trust with Investors

Attaching great importance to investor relations management the Company continuously

improves internal policies such as the Regulations for Investor Relations Management and expands

communication channels with investors. Through activities such as performance presentation

meeting conference calls organized visits and researches the Company has maintained timely and

effective communication with investors on corporate governance operating conditions sustainable

development etc. which further enhances the interaction and mutual trust between the Company

and investors. In 2024 the Company deepened investors’ understanding of the Company through

various activities such as holding financial results announcement meetings participating in strategy

meetings conducting reverse roadshows and receiving research visits. The Company sincerely took

the opinions and suggestions of shareholders and potential investors and provided timely replies

2 72024 ESG Report of DSBJ

and explanations to shareholders and potential investors so as to build a good interactive ecosystem

with investors and render high-quality services to investors.* Safeguarding the Rights and Interests of Minority Shareholders

The Company equally treats all shareholders and continuously standardizes the procedures for

convening holding deliberating and voting on the general meeting of shareholders to ensure that

investors especially minority shareholders can enjoy the right to be informed and participate in

major matters of the Company. The Company after fully considering the time place and convening

approach of the general meeting of shareholders has adopted a combination of on-site voting and

online voting for issues deliberated on the general meeting of shareholders so as to facilitate the

participation of shareholders especially that of minority shareholders. For major matters that may

affect the rights and interests of minority investors the Company has counted and disclosed the

votes from minority investors separately whereby the opinions of them can be fully expressed.Through channels such as the platform of “EasyIR” the Company has communicated with investors

fully listening to opinions and demands of minority shareholders and timely responding to issues of

concern to minority shareholders. In 2024 the Company responded to 183 questions from minority

investors through the “EasyIR”platform achieving a 100% response and assigned dedicated

personnel to answer the investor hotline patiently addressing the inquiries from minority investors.* Sharing the Company’s Development Achievements

While focusing on our own development the Company adheres to an investor-oriented

approach. Since listing the Company has been strictly formulating a cash dividend policy thatcombines continuity and stability in accordance with the Articles of Association to create a “long-term stable and sustainable” shareholder value return mechanism thereby continuously sharing

the Company’s development achievements with investors. During the reporting period the

Company based on actual operating conditions and development plans has formulated an annual

profit distribution plan on the premise of ensuring normal operations and long-term development.Independent directors have fulfilled their duties and responsibilities to express clear independent

opinions on the preparation and decision-making process of the profit distribution plan. The relevant

proposals after being reviewed by the Board of Directors and the Board of Supervisors are

2 82024 ESG Report of DSBJ

submitted to the General Meeting of Shareholders for deliberation thereby effectively safeguarding

the legitimate rights and interests of shareholders. In 2024 the Company implemented the 2023

profit distribution plan distributing a cash dividend of RMB 2.5 (including tax) per 10 shares

totaling RMB 425319100 in cash dividends which accounted for 21.65% of the Company’s net

profit attributable to shareholders in 2023.

1.1.4 Tax Transparency

DSBJ has always upheld tax compliance and regulatory-adherent operations as the

foundational cornerstone of corporate development. The Company has rigorously complied with

domestic regulations such as the Enterprise Income Tax Law of the People’s Republic of China

and international tax frameworks and has institutionalized robust governance through internal

policies such as the DSBJ Tax Compliance Management Regulations which standardize tax filing

risk management tax incentives and tax strategy alignment for global operations. In order to ensure

the accuracy and compliance during tax management we have established a dedicated tax team and

introduced advanced financial management software and automated tax governance systems. We

also reject tax structures lacking commercial substance and adopt the principle of independent

transactions for transfer pricing. During the reporting period DSBJ achieved a 100% tax filing

timeliness rate receiving an A-level tax credit evaluation and accurately completed overseas

business tax filings with no significant tax non-compliance issues reported.The Company has implemented a comprehensive tax risk management framework

establishing internal tax risk assessment metrics to conduct regular tax risk identification and self-

evaluation processes. This systematic approach can transform tax risk governance from reactive

mitigation to proactive control. In addition the tax team organizes monthly internal training sessions

and facilitates cross-departmental workshops to integrate tax compliance requirements into

operational workflows thereby enhancing all employees’ understanding and prioritization of tax

compliance.

2 92024 ESG Report of DSBJ

1.2 Business Ethics and Anti-Corruption

1.2.1 Governance

DSBJ strictly complies with laws and regulations and industry codes such as the Company

Law of the People’s Republic of China 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 Guidelines No. 1 on

Self-regulatory Supervision for Companies Listed on Shenzhen Stock Exchange - Standardized

Operation of Companies Listed on the Main Board. The Company has established a comprehensive

structure covering business ethics and compliance management of the Company and its supply chain

solidifying the defense against breaches of business ethics. The Board of Directors serves as the

highest decision-making body for business ethics and anti-corruption management while the Audit

Committee subordinated to the Board of Directors is responsible for overseeing the implementation

of business ethics management systems and requirements and fulfilling its duties concerning

significant compliance and business ethics matters. In terms of operations the audit department as

an independent oversight body within the Company is responsible for assessing risks from business

ethics and anti-corruption matters formulating related policies and systems conducting routine

audit supervision and collaborating with the human resources department to promote business

ethics among all employees thereby ensuring the Company consistently complies with high-

standard compliance and ethical requirements. All functional departments of the Company strictly

comply with and implement the relevant provisions on business ethics.The Company implements a business ethics management system focused on the Policy for

Management of Business Ethics and Integrity Efforts achieving 100% coverage across all business

segments and functional departments. This system requires the Company’s directors all employees

and all supply chains and partners to comply with anti-fraud anti-money laundering anti-corruption

fair competition and anti-monopoly and conflict-of-interest prevention requirements. For suppliers

the Company has developed a dedicated policy of the Supply Chain Personnel Conduct

Management Procedures and Standards explicitly mandating business ethics and anti-corruption

requirements for suppliers so as to ensure that suppliers continuously improve their business ethics

management systems.

3 02024 ESG Report of DSBJ

1.2.2 Strategy and Management Mechanism

DSBJ recognizes business ethics as the cornerstone of corporate development. We have

institutionalized a robust business ethics and anti-corruption governance framework integrating

enhanced training programs of business ethics and anti-corruption into the Company’s development

strategies and daily operations. We also require our supply chain partners to comply with business

ethics and anti-corruption requirements in order to safeguard our high-quality and sustainable

growth. During the reporting period the Company has been involved in no major litigation cases

related to corruption bribery or unfair competition.DSBJ joined the Anti-Fraud Alliance Association.* Business Ethics Culture Construction

The Company actively fosters a culture of business ethnics ensuring that its requirements in

business ethics are communicated to employees suppliers and other internal and external

stakeholders. It also calls for the practical fulfillment of business ethnics commitments across all

levels of the organization. The Company internally conducts effective business ethics promotion

through employee handbooks rules and regulations newsletters etc. and regularly provides anti-

fraud training and integrity and ethics education to the management and all employees so as to

ensure that all employees maintain integrity honesty and diligence in work and actively prevent

corrupt behavior. The Company has also established regulations such as the Gift Acceptance and

Entertainment Management Norms and the Conflict of Interest Management Norms the Anti-

Corruption Management Regulations to regulate employees’ behaviors requiring all employees to

sign the Anti-Fraud and Anti-Bribery Commitment Letter so as to ensure that every employee

complies with anti-corruption and integrity requirements.

3 12024 ESG Report of DSBJ

Offline: Integrity and conflict of interest Online: Business ethics series courses

training

* Anti-Unfair Competition

The Company strictly complies with the Anti-Unfair Competition Law of the People’s Republic

of China and the relevant anti-monopoly and anti-unfair competition laws and regulations of the

countries and regions where it operates. We encourage each business segment to establish anti-unfair

competition policies clearly prohibiting unfair competition behaviors such as price manipulation

false advertising and infringement of trade secrets. We are committed to fostering a fairer and more

transparent market competition environment. In 2024 the Company violated no anti-unfair

competition laws and regulations.MULTEK Code of Business Conducts

We strive to outperform our competitors fairly and equitably rather than through unethical or

illegal business practices. We strictly forbid theft of proprietary information acquisition of trade

secrets without the owner authorization and inducing current or former employees of other

organizations to disclose such confidential data. The Company’s relevant personnel shall

endeavor to respect the rights of the clients suppliers competitors and employees of the

Company and treat them fairly and equitably. All relevant personnel of the Company shall

refrain from deriving improper benefits through manipulation concealment and abuse of

privileged information misrepresentation of critical data or any deliberate unfair trading

practices.* Supply Chain Business Ethics Management

The Company has established the Management Procedures and Regulations for Supply Chain

Personnel Conducts and requires all suppliers to sign the Integrity Cooperation Agreement the Anti-

Fraud and Anti-Commercial Bribery Commitment Letter or the Anti-Commercial Bribery

Agreement before cooperation. We also set up external reporting channels to identify and prevent

business ethics risks. The Company conducts audits on the suppliers’ performance of the code of

conduct and management of business ethics as well as due diligence investigations project audits

and compliance checks with partners based on cooperation projects when necessary to ensure

3 22024 ESG Report of DSBJ

continuous supervision of supply chain compliance risks. Suppliers with serious violations will be

blacklisted and punished according to the Company’s relevant regulations.* Reporting Management

The Company tolerates no behavior that violates business ethics and has formulated the

Misconduct Reporting Mechanism and Handling Measures to continuously improve the reporting

and handling mechanism. We also ensure that all employees understand the reporting channels and

processes through training and publicity posters. Employees of the Company at all levels and all

parties of the society with direct or indirect economic relationships with the Company can report

actual or suspected violations of business ethics by the Company and its employees through various

reporting channels such as reporting hotlines emails and letters. The Company’s internal audit

department is responsible for handling complaints and reports related to employees’ misconduct

and dedicated personnel are designated to receive process and provide feedback on complaints and

reports as well as investigate disciplinary cases. If it is confirmed that there are facts of corruption

the Company will take actions against the individuals involved based on the severity of the facts

including but not limited to position transfer demotion downgrade salary reduction termination

of employment contracts and referral for legal action.The Company strictly adheres to the principles of independence objectivity fairness and

confidentiality. In accordance with relevant provisions on protecting whistleblowers the Company

strictly maintains the confidentiality of the whistleblowers’ personal information and the reporting

materials they provide throughout the process of acceptance registration and investigation. At the

same time the Company rigorously safeguards the personal safety of whistleblowers and harshly

punishes any retaliatory actions. Individuals found to violate confidentiality rules or engage in

retaliatory actions against whistleblowers will be held accountable in accordance with the relevant

provisions of the Company with severe penalties imposed on those involved in retaliatory actions.Individuals committing criminal acts will be referred to judicial authorities for prosecution.Whistleblowers who provide credible reports and can recover significant losses for the Company

will be rewarded based on the amount saved.Reporting Channel

3 32024 ESG Report of DSBJ

DSBJ reporting email: jubao@dsbj.com

MFLEX reporting email: jubao@mflex.com

Multek reporting email: fxgl@Multek.com

1.2.3 Impact Risk and Opportunity Management

DSBJ integrates business ethics and anti-corruption risks into the Company’s comprehensive

risk management system. To properly address business ethics-related risks the Company regularlyconducts identification and assessment of business ethics risks (refer to the “Risk Management andInternal Control” section of this report for detailed processes). In the event of significant changes in

the external environment or some major events or business changes in the Company we will also

assess these risks timely. The Company has defined risk control strategies around business ethics

risk points in the areas of trading opportunities power positions funding costs compliance and

regulation to ensure that all business practices meet ethical and compliance requirements.The headquarters of DSBJ is responsible for coordinating supervising and guiding each

division for the establishment of overall control procedures and mechanisms with the audit results

directly reported to the Audit Committee subordinated to the Board of Directors. The Company

establishes an audit and inspection department independent from the business operation system

which exercises investigation rights independently. The Company also develops an audit program

annually carries out regular audits on the implementation of business ethics-related policies and the

commercial ethics risks in various business scenarios through compliance audits operational audits

and special audits. Internal audits relative to business ethics should cover all of the Company’s

operating locations and businesses every three years. Moreover the Company develops a continual

improvement plan based on audit findings to enhance the business ethics and anti-corruption

framework.

1.2.4 Indicators and Targets

Indicators and Targets Achievement in 2024

The Company was involved in 0

major litigation cases regarding Targets achieved

corruption fraud or unfair

3 42024 ESG Report of DSBJ

Indicators and Targets Achievement in 2024

competition

100% coverage of business ethics Targets achieved

and anti-corruption training for 100% coverage of business ethics and anti-corruption

directors and employees training for directors and employees with an average

training duration of 3 hours per person

100% effective handling rate of

Targets achieved

reporting

Full coverage and confirmation of

conflict of interest declarations for

Targets achieved

employees at D6 level and above in

the Company

1.3 Digital Intelligence Transformation

DSBJ has proactively embraced technological changes aligning various business segments to

enhance the development of a comprehensive technical framework and implementation strategy for

intelligent manufacturing. We have established a data-centric multi-platform and multi-system

interactive integration system that fosters deep synergy between digital technology and the

manufacturing sector. This initiative not only advances the integration of artificial intelligence with

new industrial processes but also injects fresh momentum into the Company’s development. In 2024

DSBJ continued to promote the integration of informatization and industrialization and the

construction of smart factories. Based on the analysis of domestic and international technology

trends such as big data and artificial intelligence (AI) we formulated a new three-year strategic

layout (2024-2026) towards “accelerated development driven by digital and intelligent decision”.Harnessing digital and intelligent decisions to accelerate development for empowering

innovation-led growth

3 52024 ESG Report of DSBJ

Research & Development AutoML Platform

Promotion & Empowerment Intelligent Manufacturing - Phase 2

Cooperation & Co-construction Data Driven Culture

Intelligent Manufacturing - Phase 1 Decision Intelligence

Integrated Platform AI Platform Engineering

Data Governance Digital Twin

AI Democratization

Strategic We will optimize resource allocation and rationally apply artificial

targets intelligence to accelerate smart manufacturing construction based on the

decision driven by big data thereby achieving revenue and profit growth.* Achieve data analysis and visualization for ten major topics including

Implementation

supply chain sales human resources and inventory by deepening the

Path

governance of master data and indicator data.* Provide a high-quality data service platform by strengthening the

capabilities of the big data platform.* Apply artificial intelligence in business scenarios such as smart

manufacturing smart office smart park and intelligent supply chain

starting from “AI+Quality” “AI+Cost” “AI+Delivery” and

“AI+Service&Safety”.* Holistically plan and systematize AI capabilities across computational

resources algorithmic models governance and application services

while developing secure and reliable intelligent systems and

engineering platforms with robust model generalization capabilities.* Improve the digital talent training system to cultivate digitally versatile

talents that meet business needs.* Achieve intelligent risk prevention and control through the three core

3 62024 ESG Report of DSBJ

engines (continuous improvement of information security system

information security prevention and control technical capabilities and

information security emergency response capabilities).* Data Governance and Big Data Platform Construction

Data governance and big data platform construction serve as a foundational cornerstone of

intelligent manufacturing. The Company continuously optimizes the big data platform through

policies including the Big Data Platform Management Standards and the Data Quality Control

Regulation to achieve seamless integration of workforce mobility logistics capital flow process

optimization information integration and technology deployment which has significantly

enhanced operational efficiency and fostered industrial upgrading.* AI-driven Empowerment

By advancing industrial digitalization with the “Intelligent Matrix” DSBJ creates a robust

manufacturing system that integrates automation digitization and intelligence technologies.* Digital Talent Cultivation

Digital talents act as a key driving force behind the implementation of the intelligent strategy

of DSBJ. We are refining the digital talent development ecosystem designed to nurture versatile

professionals skilled in data-driven decision-making low-code development BI analytics and AI

applications.

1.4 Information Security and Privacy Management

1.4.1 Governance

DSBJ strictly complies with China’s laws and regulations such as the Cybersecurity Law of

the People’s Republic of China the Data Security Law of the People’s Republic of China and the

Personal Information Protection Law of the People’s Republic of China as well as those of other

countries such as the U.S. Cybersecurity Information Sharing Act the Amendment of Personal Data

Protection Act (PDPA) and the Digital Trust Framework Act in Singapore. Accordingly the

Company has established a comprehensive governance structure for information security and

privacy protection. The Company has established an information security and privacy protection

3 72024 ESG Report of DSBJ

working group and an Information Technology Department at the headquarters level. These

organizations collaborate with the Security and Privacy Committee and the Information Security

Department of the overseas headquarters in Singapore to research and translate global data

protection laws and policies and jointly advance the development implementation and supervision

of information security and privacy management planning. Through these initiatives we ensure that

the information security operation and maintenance system is running effectively. In addition each

division is equipped with dedicated personnel responsible for implementing specific tasks related

to information security and privacy protection so as to strengthen information data security

management and improve data governance.The Company has established a series of institutional norms including the Data Security

Management Procedures the Information Security Risk Management Procedures the Information

Asset Security Management Procedures and the Information Security Reward and Punishment

Policy in order to create a comprehensive information security protection system that covers all

business areas of the Company thereby ensuring the security of information infrastructure

application systems products and customer information. In 2024 the Company revised the

Information Security and Privacy Manual and the Privacy Governance Policy based on the latest

ISO 27001 requirements and added cloud service management requirements to ensure the ongoing

effectiveness and adaptability of the information security management system.

1.4.2 Strategy and Management Mechanism

With reference to the latest requirements of ISO 27001 information security management

system and ISO 27701 personal privacy information management system DSBJ has adopted

various measures to continuously improve the overall information security level including

establishing an information security management platform unifying information security

management policies implementing centralized deployment of information security and clarifying

the requirements and standards to employee behaviors in information security management

information security technology and emergency response and conducting enhanced training and

regular audits on information security and privacy protection.All divisions of DSBJ have been certified with the ISO 27001 Information Security

3 82024 ESG Report of DSBJ

Management System

DSBJ has been certified with the ISO27701 Personal Privacy Information Management

System

DSBJ has been awarded the title of “Five-Star Cloud Enterprise”

* Comprehensive Information and Data Security Management

* The Company has developed the Information Classification Management

Data

Procedure to classify its information data by different categories and levels

Classification

and adopt targeted protection measures in accordance with information data

and Control

hierarchical classification management norms as provided by policies. For

sensitive data measures such as limiting usage scope encryption and

approval control are implemented with desensitization or encryption

carried out according to business needs.* The Company has centralized database management and implemented

Data Backup

approval management for high-risk operations. We also develop the

and

Important Information Backup Management Procedures to establish a

Recovery

comprehensive data backup mechanism and conduct sampling of backup

status regularly for inspection and verification.* By deploying situational awareness devices to monitor unconventional

Strengthened

traffic in the network the Company blocks and alerts to abnormal traffic.Technical

* We record the direct access to servers from terminals discovering and

Protection

promptly addressing potential security risks.* We collect relevant log data and analyze their relationships to detect

potential security events thereby enhancing system security and reducing

potential threats.* We continuously promote the construction of the information security

management platform to enhance overall information security capabilities.Information * The Company has developed the Information Security Incident

security Management Procedures and established a complete information security

3 92024 ESG Report of DSBJ

emergency incident response and emergency disposal mechanism ensuring that

management information security is safeguarded in a timely and effective manner.* We develop an annual plan to conduct a series of emergency drills for

important applications networks data etc. which covers all functional

departments to improve response and collaborative handling capabilities

for emergency incidents.* The Company regularly (e.g. monthly and quarterly) conducts training for

Information

all employees to enhance their awareness and improve their skills in

security

information security and privacy management. Employees in various

training and

business segments can also take information security courses on online

promotion

learning platforms.* All new employees will receive concentrated training on information

security awareness after joining the Company (in conjunction with the new

employee onboarding training) in order to bring information security

awareness to new employees at their first stage of onboarding.* Supplier Information Security Management

In accordance with the Supplier Relationship Management Procedure and the Supplier Policy

formulated by the Company it is necessary to assess the risks of information security and privacy

management brought by supplier services and products or services provided by suppliers that

should meet local operational and industrial standards and requirements before cooperating with

suppliers in order to prevent the loss of the Company’s information assets and personal information

leakage. The Company has also formulated relevant policies such as the Supplier Information

Security Verification Plan the Supplier Information Security Verification Form the Cloud Control

Questionnaire the Cloud Service Security Audit Questionnaire and conducts on-site assessments on

key suppliers to determine whether their information security and privacy management meet the

requirements. Suppliers should also execute the Supplier Service Confidentiality Agreement to

guarantee they strictly meet the local information security requirements.* Protection of Personal Information and Privacy

4 02024 ESG Report of DSBJ

The Company has developed documents such as the DSBJ Privacy Policy the Personal

Identity Information Control and Management Procedures and the Information Security and

Privacy Manual to ensure transparency in data collection and usage thereby safeguarding the right

to know to choose and to control personal information. An emergency response plan is also

established to ensure customer information is not leaked.

1.4.3 Impact Risk and Opportunity Management

DSBJ has developed the Information Security Risk Management Procedures which

comprehensively cover information security risk identification risk assessment and analysis risk

treatment residual risk disposition and risk control. By quantifying risk level the Company can

more accurately identify and assess potential information security risks and develop targeted

response measures to ensure that information security and privacy protection risks are visible

preventable and controllable. The Company regularly audits its information security and privacy

management system in conjunction with business characteristics including comprehensive internal

information security audits (at least once a year) annual external audits by ISO 27001 certification

bodies and annual information security audits by global leading clients to evaluate and improve

risk control measures so as to better safeguard business continuity and data asset security.

1.4.4 Indicators and Targets

Indicators and Targets Achievement in 2024

Targets achieved

Information Security Management Index >

Information security management index

3.6

reaching 3.8

Targets achieved

Network resilience > 85%

Network resilience reaching 90%

Information security and PII training Targets achieved

coverage no less than 85% throughout the Information security and PII training coverage

year reaching 90%

Significant information security incidents < Targets achieved

1 incident No major information security incidents

4 12024 ESG Report of DSBJ

Indicators and Targets Achievement in 2024

No information leakage incidents Targets achieved

4 22024 ESG Report of DSBJ

2. Collaboration for Mutual Benefit to Build a Sustainable Supply

Chain

Sustainable Development Goals of the United Nations (SDGs)

2.1 Governance

The quality resilience and sustainability of the supply chain are critical to the robust

development of DSBJ. The Company has established a sustainable supply chain working group.The Supply Chain Management Center at the Company’s headquarters is responsible for identifying

and assessing supply chain risks formulating or updating policies and systems related to sustainable

supply chain construction and promoting risk-oriented sustainable supply chain management. The

Supply Chain Management Department of each division is responsible for centralized management

of suppliers belonging to its own business segment including continuous optimization of the

supplier pool and supplier audits evaluations and controls in collaboration with relevant

departments such as R&D quality and EHS in order to jointly ensure the security stability and

high quality of the supply chain.The Company strictly complies with relevant national laws and regulations such as the Law of

the People’s Republic of China on Bid Invitation and Bidding and the Regulation on the

Implementation of the Law of the People’s Republic of China on Bid Invitation and Bidding. It has

formulated institutional norms and guidelines related to bid invitation procurement and supplier

management such as the Supply Chain Management System Supplier Management Process and

Norms Supplier Admission and Approval Process Management Norms and Procurement

Management Process and Norms to continuously improve the supplier lifecycle management.

432024 ESG Report of DSBJ

2.2 Strategy and Management Mechanism

Guided by the Company’s business strategy DSBJ strives to create a fair and equitable

procurement environment that can continuously optimize the supplier lifecycle management in

order to constantly improve the quality and risk resilience of the supply chain. We are devoted to

building a competitive resilient and sustainable supply chain that can provide a solid guarantee for

the Company’s vision of “building a 100-billion advanced and intelligent manufacturing platform”.The Company has 5040 suppliers in total including 4531 suppliers from China (including

Hong Kong Macau and Taiwan) and 509 suppliers overseas.

2.2.1 Supplier Lifecycle Management

The Company has established a supplier lifecycle management system and mechanism to

standardize the process mechanism for supplier admission assessment evaluation and exit thereby

building a high-quality safe and stable supplier team.Supplier lifecycle management

The Company has formed an inspection team composed of multiple departments

(including procurement departments quality departments R&D engineering

Supplier

departments etc.) to inspect suppliers’ information and qualifications according to

admission

the established supplier admission thresholds. Qualified suppliers are included in the

Qualified Supplier List after receiving the inspection.The Company develops an annual supplier audit plan and conducts regular

monitoring and comprehensive evaluation in terms of supplier performance product

Assessment quality EHS management business ethics and anti-corruption through qualification

and review document audit on-site audit annual assessment etc. In addition the

Company provides timely feedback to suppliers based on audit results assisting

evaluation

suppliers in continuous improvement to ensure the safety and compliance of overall

business operations.The Company conducts hierarchical classification management on suppliers. We

Hierarchical

classify suppliers into three categories (A B C) horizontally and each of these

4 42024 ESG Report of DSBJ

categories is further classified into three levels (excellent good qualified) based on

classification

the impact of suppliers on the Company’s final products and establish management

management

requirements and standards for each category and level. We adjust the categories and

levels dynamically per year based on evaluation results procurement scale material

characteristics and other factors. Outstanding suppliers may participate in the supply

of new project products while non-compliant suppliers are restricted from

supplying.If a supplier’s performance is rated as category C and remains at category C after the

rectification period or if the supplier has significant issues related to quality

delivery price service etc. or improper behaviors involving business ethics

Supplier exit

significant environmental incidents etc. the Company will eliminate the supplier

from the supplier pool properly and claim against the supplier for relevant

responsibilities and losses based on the actual situation.

2.2.2 Sustainable Procurement

The Company has incorporated the sustainable development requirements into its supply chain

management system and promoted each business segment to formulate the requirements for

suppliers’ social code of conduct in accordance with the Electronic Industry Code of Conduct

(EICC) the Social Accountability Standard (SA8000) and a series of standards issued by the

International Labor Organization (ILO). When selecting suppliers the Company’s business

segments deeply understand the performance of suppliers in sustainable development with great

attention paid to ESG factors ensuring that suppliers’ performance in governance social and

environmental aspects meets the requirements. At the supplier admission stage the Company

requires suppliers to sign the Supplier Social Responsibility Commitment Letter and the Supplier

Code of Conduct Assurance Agreement to make commitments for occupational health and safety

environmental protection business ethics etc. In addition the Company identifies assesses and

controls potential risks inclusive of ESG risks in the supply chain according to internal checklists

such as the Supplier Environmental and Social Responsibility Audit Form and the Supplier Green

Product Management System Evaluation Form to ensure the sustainability and stability of thesupply chain. Please refer to the “Excellent Governance for Moving Towards a New Journey ofHigh-Quality Development/Business Ethics and Anti-Corruption” chapter for detailed information

on supply chain business ethics and anti-corruption management. In addition with emphasis on

4 52024 ESG Report of DSBJ

protecting suppliers’ rights and interests the Company treats suppliers faithfully while ensuring

equitable treatment of SME partners to uphold their legitimate rights and interests.* Quality Risk Control

The Company has established internal management policies such as the Supply Chain

Management Policy and the Supplier Management Control Procedures to set up requirements for

the quality qualifications of suppliers. According to the requirements suppliers should have boasted

professional qualifications of the services or products they provide and established a sound quality

management system complying with current laws and regulations including the ISO 9001 quality

system certification and the IATF 16949 quality system certification (for suppliers that produce

automotive parts). Suppliers must continuously meet these requirements. At the same time the

Company requires key suppliers to execute the Supplier Quality Assurance Agreement.The Company communicates in a timely manner with suppliers to ensure that suppliers fully

understand the quality requirements for the materials they supply. Furthermore the Company

manages suppliers through supplier audits incoming material inspections performance evaluations

and continuous improvement to ensure product safety and quality. Supplier quality audits are

conducted in accordance with the Supplier Audit Management Procedures encompassing audits on

quality management systems product design and development material and supplier management

manufacturing process management change management non-conformity control improvement

and after-sales service hazardous substance management etc. The Company formulates an annual

supplier audit plan and strictly implements it with dynamic audits conducted in case of quality

issues or other abnormalities. The procurement quality and other departments of the Company’s

business segments conduct regular reviews and analyses focusing on supplier quality audits and

evaluations. For any non-conformity items identified during the process the Company will require

the suppliers involved to rectify the items within a specified period in the form of written

improvement reports and provide quality training and technical cooperation and exchanges when

necessary to jointly improve the quality.Based on the results of supplier quality assessments and the issues identified during the audit

process each business segment is required to collaborate with relevant departments to conduct

4 62024 ESG Report of DSBJ

regular quality management capability improvement training tailored to suppliers to meet the

specific product requirements of each unit. Additionally each business segment needs to provide

targeted guidance and assistance to suppliers including support for technological transformation

upgrading and optimization efforts. Through these collaborative initiatives we seek to assist

suppliers in enhancing their quality standards and collectively promote product upgrades across our

supply chain.Suppliers certified to the quality management system: 2747

Suppliers that have executed the quality assurance agreement: 2759

Suppliers certified to the IECQ QC 080000 Hazardous Substances Process Management

System: 593

* Human Rights Risk Management

DSBJ drives various business segments to develop the Supplier Code of Business Conduct and

Ethics in accordance with the requirements of the International Labor Organization (ILO) the Code

of Conduct for Responsible Business Alliances (RBA) and the relevant laws and regulations of the

places of operation. The content of the code of conduct should include anti-child labor and anti-

forced labor working and rest hours anti-discrimination collective bargaining occupational health

and safety requirements etc. We also require suppliers to sign social responsibility commitment

letters or guarantee agreements in order to guide suppliers to strengthen sustainability management

and ensure that products or services from them are produced or provided in a manner that complies

with human rights requirements and ethical standards.* All employees enjoy the rights and interests of free and equal

Human Rights

consultation and collective bargaining;

and anti-

* Any form of coercion is prohibited;

discrimination

* Any form of prejudice and discrimination are prohibited.* It is prohibited to employ forced laborers;

Prohibition of

* It is prohibited to require employees to pay deposits or provide identity

forced labor

documents as collateral.

4 72024 ESG Report of DSBJ

* Child labor is prohibited;

Employment * Remuneration must comply with national laws or industry standards

conditions and employees should be paid equally for equal work;

* Forced labor is prohibited.* It is required to provide a healthy and safe working environment and

Occupational protective measures;

health and safety * It is required to provide appropriate health and safety information and

training.Suppliers certified to the occupational health and safety management system: 990

Suppliers successfully passed third-party ESG audits such as the Responsible Business Alliance

(RBA) and Sedex: 74

* Driving the Green Transformation of the Supply Chain

As driven by the Company each business segment actively implements green procurement and

signs the Green Product Guarantee Statement with suppliers. They require suppliers to use limited

resources prudently and responsibly guarantee all production processes of the products comply with

the requirements of environmental laws and regulations and minimize the impact of the business

activities on the environment. In addition all business segments mandate suppliers to execute the

Restricted Substances Compliance Agreements and the REACH Substances of Very High Concern

Disclosure Statements ensuring adherence to RoHS directives relevant laws and regulations of the

places of operation on electronic product pollution control and Hazardous Substance-Free (HSF)

management requirements. This collaborative governance has driven green transformation across

the supply chain.Suppliers certified to the environmental management system: 1163

The Company’s subsidiary Yancheng Dongshan requires suppliers to fill out the Stakeholder

4 82024 ESG Report of DSBJ

Environmental Management Performance Evaluation Questionnaire through which it assesses

suppliers’ certification and construction of environmental management systems progress of

environmental topics such as three-waste emissions and waste management environmental

compliance environmental emergency management etc. In these assessments suppliers with a

score equal to or more than 60 points are considered qualified while those with a score less than

60 points are considered unqualified. The unqualified suppliers are required to make

rectifications. If they fail to respond or improve Yancheng Dongshan will terminate business

dealings with them.* Supplier Collaboration for Mutual Benefit

The Company actively encourages cooperation and communication with suppliers through

annual supplier conferences daily technical exchanges various specialized training sessions etc.With these measures we help suppliers continuously improve their process technology levels

optimize working methods and timely update information on production requirements and policy

trends. We are growing together with suppliers in an open and cooperative manner. During the

reporting period the Company provided training to 421 suppliers.Technical communication with electronic manufacturers

2.2.3 Resilient Supply Chain

Establishing a resilient supply chain and ensuring business continuity are important guarantees

for the Company’s stable operations. To ensure a stable supply of strategic resources the Company

has formulated a Business Continuity Plan for the Supply Chain Management Department and

continuously optimized the supply chain structure to ensure that suppliers have diversified

backgrounds and come from multiple channels. The Company has also conducted enhanced

4 92024 ESG Report of DSBJ

preventive control measures against factors such as supply chain disruptions price increases and

unexpected events effectively preventing potential risks in the supply chain and strengthening

supply chain resilience. In 2024 the Company’s raw material supply remained stable and

production was not affected by raw material shortages.Establishing To prevent delivery delays or insufficient supply caused by factors such as

multiple climate distance and policies the Company procures materials through

channels for multiple channels deeply explores resource markets and analyzes development

raw material trends to continuously optimize supplier resources. Through these initiatives the

supply Company has reduced exclusive and intermediary purchases thereby mitigating

the risk of single sourcing while lowering procurement costs and maintaining

raw material supply stability.Encouraging The Company encourages localization sourcing. It identifies material supply

localization risks overall based on historical delivery and inventory reserve situations

procurement actively exploring and selecting products that meet production requirements for

domestic substitution and local procurement from technical commercial

production capacity and accessibility perspectives and cooperating with reliable

trading partners. Through these endeavors the Company has shortened

transportation cycles and supply times enhanced control and transparency and

improved the supply chain’s risk resistance and rapid response capabilities

thereby promoting economic development of the place where the Company is

located.Cultivating The Company maintains timely communication with suppliers through multiple

good ways such as email phone remote meetings face-to-face discussions etc. To

cooperative avoid price increases and ensure post-sales service quality the Company

relationship conducts strategic discussions with suppliers and signs strategic cooperation

agreements with core suppliers to ensure optimal reserves and a stable supply of

materials. It establishes a benign and effective supplier competition and

5 02024 ESG Report of DSBJ

protection mechanism to create a good atmosphere for supply chain cooperation

and persist in joint development and growth with a wide range of qualified

suppliers to build a harmonious supply chain ecosystem.Enhancing The Company has developed differentiated plans procedures and key actions

emergency based on the severity level of production activities the likelihood of supply

management shortages etc. and has implemented focused tracking of high-risk and medium-

risk materials to eliminate the risk of material shortages. The Supply Chain

Management Center coordinates and plans the necessary resources for various

business segments subsidiaries and branches through the Supply Chain

Resource Coordination Contact Letter to enhance emergency management. To

ensure normal operations the Company constantly monitors potential supply

chain disruption risks and strengthens supply chain risk assessment and control

to ensure that daily supplies are not affected.

2.2.4 Responsible Mining Procurement

The Company has formulated the Conflict Minerals Procurement Policy in accordance with

the Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and

High-Risk Areas of the Organisation for Economic Cooperation and Development (OECD) and

other applicable standards to establish a sound responsible mining due diligence management

system. We have developed clear and transparent management procedures for the use of mineral

resources in the production and operation process to identify and manage potential risks committing

to using no “conflict minerals” from areas controlled by armed groups perpetrating crimes against

humanity in the Democratic Republic of the Congo or adjoining countries/regions. We also

committed to tracing the sources of gold (Au) tantalum (Ta) tin (Sn) tungsten (W) etc. in all

products to ensure the legality of raw material sources insisting on ethical procurement.* Promotion and Implementation of Conflict Minerals Procurement Policy

As driven by the Company each business segments communicate the conflict minerals policy

to direct suppliers through multiple channels. The Company has required suppliers to sign the

5 12024 ESG Report of DSBJ

Commitment Letter for Not Using Conflict Minerals and incorporated mineral resource management

regulations into contracts and agreements signed with suppliers. Moreover the Company also

conducts responsible mining supply chain due diligence and requires all relevant suppliers to strictly

adhere to the commitment of not using mineral resources from conflict-affected areas. In addition

the Company’s various business segments encourage suppliers to establish policies for conflict

minerals and require them to pass on this principle to their upstream suppliers.The Company’s Conflict Minerals Procurement Policy and Commitment Letter for Not Using

Conflict Minerals have been communicated to 100% of our suppliers.The responsible mining special training has covered 100% of the relevant suppliers.There were 2149 suppliers that have undergone responsible mining due diligence and received

qualified results.Suppliers signing the Commitment Letter for Not Using Conflict Minerals have accounted for

100% of our suppliers.

* Responsible Supply Chain Management

The Company’s various business segments have formulated the conflict minerals investigation

management procedures to conduct responsible mining due diligence on suppliers. Suppliers are

required to truthfully fill in and respond to the Conflict Minerals Reporting Template (CMRT)

regarding the usage and sources of relevant minerals in the delivered products and provide

supporting materials to ensure the compliance and traceability of the procurement sources. The

Company has established a supplier risk assessment and management process. It draws a supply

chain map based on the KYC information collected from suppliers and identifies conflict-affected

and high-risk areas (CAHRA) risk based on information related to suppliers and supply chains

retrieved from public sources formulating due diligence plans and carrying out supply chain due

diligence investigations. Through these initiatives the Company has promoted improvement

measures including requiring suppliers to eliminate non-compliant smelters and strengthen risk

control. If a supplier is at risk of conflict minerals the supplier must immediately notify the

Company in writing and the Company will terminate the development or replace the supplier

5 22024 ESG Report of DSBJ

involved in the conflict minerals.During the reporting period due diligence was conducted on all suppliers that should be

included in the responsible mining due diligence scope with 100% of supply chain enterprises

not using illegal conflict minerals.Responsible Mining Due Diligence Management Process

Screen all products of the Company Assess the sources of 3TG in the product and the

conflict purchase status

Determine if the products contain 3TG Conduct due diligence on suppliers

Identify products containing 3TG and their Respond to CMRT and other questionnaires

corresponding suppliers

Collect relevant information from suppliers Take improvement on high- and medium-risk

suppliers

Evaluate suppliers’ risk levels Suspend or terminate business relationships with

these suppliers

5 32024 ESG Report of DSBJ

2.3 Impact Risk and Opportunity Management

DSBJ faces a variety of supply chain risks including quality risks hazardous substance risks

supply risks (such as supply interruptions and raw material shortages) financial risks (such as price

increases and market changes) compliance risks (such as violations of laws and regulations and

company policies) and ESG risks (such as labor rights occupational health and safety business

ethics and anti-corruption conflict minerals) among others. The Company’s internal management

norms such as the Supply Chain Management System and the Supplier Management Processes and

Standards as fully consider supply chain risks and have conducted detailed risk control over each

link in the supply chain.According to requirements outlined in the Supplier Risk Assessment Procedures and the

Supplier Risk Management Control Procedures the Company identifies and carefully evaluates

relevant risks including ESG risks that may arise in the supply chain every year so as to perform

in-depth analysis of specific mitigation measures against different types of suppliers. We also

develop an annual audit plan to evaluate and assess suppliers for stimulating their continuous

improvement ensuring effective control of supply chain risks. For suppliers with high risks the

Company will limit the supply quantities and stop purchasing new products and develop alternate

suppliers. The Company continuously monitors and tracks the implementation of supplier risk

management measures and evaluates their effectiveness periodically.

2.4 Indicators and Targets

Indicators and Targets Achievement in 2024

Targets achieved

The Company experienced no incident

No disruption to operations

that the task failed to complete due to

supply chain disruptions

The ESG No incidents of child labor and

Targets achieved

risks in the forced labor among suppliers

supply The Company’s Conflict Minerals Targets achieved

5 42024 ESG Report of DSBJ

chain are Procurement Policy and

effectively Commitment Letter for Not Using

managed Conflict Minerals have been

communicated to 100% of our

suppliers

100% of supply chain enterprises do

Targets achieved

not use illegal conflict minerals

5 52024 ESG Report of DSBJ

3. Insisting on Quality for Continuous Improvement of Product

Quality and Competitiveness

Sustainable Development Goals of the United Nations (SDGs)

3.1 Driven by Innovation

3.1.1 Governance

New quality productive forces with innovation at its core are the key driving force for

enhancing the core competitiveness of the Company. With adherence to long-termism DSBJ

continuously improves the technological innovation system and accelerates the cultivation and

development of new quality productive forces. The R&D departments of the Company’s various

divisions plan research and development according to business needs implement various tasks of

R&D innovation at the execution level and collaborates closely and efficiently with sales

production and other departments ensuring advanced and applicable product R&D and technology

research through end-to-end cooperation from R&D to production to market promotion.

3.1.2 Strategy and Management Mechanism

With the mission of “building a better connected world for tomorrow” DSBJ keeps pace with

the national major strategies and industry development trends. We based on the market demand

continuously increase our R&D investment and strengthen R&D management to build cutting-edge

technology platforms with more technology breakthroughs and accelerated application

transformations thereby contributing to the industry’s innovative development.

562024 ESG Report of DSBJ

3.1.2.1 Innovative R&D management

Based on accurate knowledge in customer needs the R&D departments of the Company’s

various divisions have established comprehensive open R&D systems and efficient R&D innovation

mechanisms to conduct innovative research covering various aspects including material

development structural design electronic design and product application research. They keep pace

with technology frontiers to enhance independent innovation capabilities and solidify the foundation

for high-quality development.Sound R&D By developing and implementing the R&D Cycle Management Procedures

management and establishing a sound R&D project lifecycle management system the

Company continuously standardizes and optimizes key R&D stages such as

quotation design sample trial production mass production to accelerate the

development process of innovative products thereby timely converting the

Company’s key technologies into actual products to achieve the

transformation of scientific and technological achievements.Security of With continuously increased investment in science and technology

funding for innovation the Company is exploring the cutting-edge manufacturing

scientific technology of the core devices in the field of intelligent interconnection and

research interoperability through ongoing investment in the R&D of new materials

new technologies new processes etc. in order to lay a solid foundation for

serving the future innovative business like AR/VR IoT Mini LED displays

and new energy vehicles.Mutto Optronics has established an earmarked funding mechanism for

scientific research according to which special funds are allocated to

research projects with different development cycles. Mutto Optronics

regularly tracks fund utilization and project development progress

ensuring effective and rational use of research funds to guarantee the

smooth implementation of research projects.

5 72024 ESG Report of DSBJ

Enhanced Insisting on people-oriented innovation the Company had combined

innovation innovative management with incentive mechanisms. We have provided R&D

incentives personnel with daily assessment incentives and technology-specific

incentives and implemented equity incentive plans covering core

management personnel and technical talents so as to encourage employees

to participate in technological innovation and to stimulate the vitality of the

talent and the organization.* Establishment of a Technology Innovation Platform

The Company has established a high-level and open technology innovation platform along

with a comprehensive innovation system. Through collaboration with customers to conduct

technological innovation research and tackle key technical challenges we have promoted research

into key technologies and facilitated their transformation into practical applications so as to provide

the continuous driving force for the Company’s innovative development. Leveraging its extensive

corporate technical expertise the Company has undertaken scientific research on key and

challenging process technologies within the industry. This effort has yielded numerous advanced

results patents and standards all bearing independent intellectual property rights. Through

proactive promotion and application the Company has successfully transformed these scientific and

technological achievements into new quality productive forces. This ongoing endeavor leads to a

continuous technological innovation and product upgrades creating sustained value for the

development of the industry.DSBJ’s parent company and MFLEX Yancheng Suzhou Dongyue Yancheng Dongchuang Rf

Top Electronic Yongchuang Technology Yancheng Dongshan Suzhou Dongdai have been

qualified as “high-tech enterprises”;

Mutto Optronics has been recognized as a “high-tech enterprise” specialized and sophisticated

enterprise that produce new and unique products with the title of “little giant” “specialized andsophisticated SME that produce new and unique products” and an “Enterprise TechnologyCenter in Jiangsu Province” and “Engineering Technology Research Center in Jiangsu

5 82024 ESG Report of DSBJProvince”;

Suzhou Dongyue has been recognized as a “Suzhou Engineering Technology Research Center”.* Build an Innovative Talent Team

Building an innovative talent team is the cornerstone of technological innovation. Leveraging

the leadership of top-tier talent the Company has established a global R&D team of technical

experts known for their exceptional skills extensive industry experience and strong innovation

capacity. By fostering an open inclusive and results-driven research environment the Company

continues to strengthen its core technological R&D and independent innovation capabilities fueling

its long-term growth with continuous innovation.With more efforts continuously paid to the employment of high-end technology talents the

Company has selected R&D talents who align with the Company’s values and possess excellent

qualities solid professional backgrounds and high potential to build professional R&D teams

covering three major business segments namely electronic circuit photoelectric display and

precision manufacturing. In addition the Company provides comprehensive support for R&D

talents including dedicated one-on-one training rewards and promotion aiming to particularly

outstanding talents who are deemed as the key training objects of their positions.In addition to regular technical training organized by the Company we invite suppliers famous

experts and scholars to come to the Company for technical exchanges and lectures through internal

training seminars and other forms and encourage employees to strengthen academic exchanges to

help them grasp innovative technologies and industry trends. We also employ external industry

experts to be our R&D consultants to help improve the professional level of the technical staff

thereby achieving the independent research and development of the innovative core technologies.Furthermore the Company actively conducts various forms of technical innovation activities such

as skills competitions to encourage employees to innovate in their positions and fosters an

innovative culture that encourages experimentation and tolerates failure throughout the Company

to help employees maintain the best state of continuous innovation and development. In 2024 all

of the Company’s divisions carried out different forms of engineering skills competitions to help

engineers improve their technical skills and stimulate their innovation abilities.

5 92024 ESG Report of DSBJ

3.1.2.2 Industry-Academia-Research Cooperation

The integration of industry academia and research is an important driving force for the

Company’s technological innovation. The Company actively engages in in-depth collaborations

with universities and scientific research institutions to accelerate the research and application of

cutting-edge technologies thereby driving resource integration across the industrial chain and

enhancing its competitiveness.DSBJ has established a joint R&D center for frontier robotics technologies with Shanghai Jiao

Tong University to deepen collaboration in humanoid robot R&D and design industrial

automation applications and cutting-edge technology exploration thereby fostering the

development of new quality productive forces.MFLEX Yancheng signed a collaborative R&D agreement with Suzhou University of Scienceand Technology to jointly develop the “FPC surface magnetron sputtered metal shielding layersand metal layer protective coating technology” enhancing the performance of FPC products.Mutto Optronics carried out industry-academia-research cooperation with Suzhou University to

develop innovative touchscreen products that meet market and customer demands by optimizing

product structures and manufacturing processes.DSG established joint laboratories with Singaporean universities and research institutes to apply

cutting-edge research technologies and results to the Company’s product development and

production in order to research and strategically plan the materials processes and technologies

involved in the Company’s future products. In 2024 the DSG Joint Laboratory launched three

collaborative projects.

3.1.2.3 Technology Ethics

The Company complies with ethical norms in technology and advocates for cultivating social

responsibility values. Drawing upon independent innovation and emphasizing the significance of

intellectual property rights the Company prioritizes key technologies while upholding excellent

6 02024 ESG Report of DSBJ

quality standards. We are committed to refraining from developing or utilizing scientific and

technological products that pose harm to the natural environment human health public safety or

ethical standards. Through the development of innovative and practical new products technologies

and processes we spare our efforts to contribute positively to social progress.With the widespread adoption of artificial intelligence applications the Company has

developed the Guidelines for Safe Artificial Intelligence Software Development Cycle emphasizing

ethical compliance in the production of AI applications and the management of generated data to

ensure that AI outputs meet moral standards and respect privacy rights. For the use of generative AI

products we formulate and publish detailed usage policies clearly requiring employees to adhere

to social norms and company policies and strictly prohibiting the generation replication publication

or dissemination of any content that may violate laws and regulations or that may be inappropriate

offensive or discriminatory.

3.1.2.4 Protection of Intellectual Property Rights

The Company attaches great importance to the protection of intellectual property rights. We

strictly abides by the relevant laws and regulations such as the Trademark Law of the People’s

Republic of China the Patent Law of the People’s Republic of China and the Implementation Rules

on the Patent Law of the People’s Republic of China and have formulated management systems

such as the Intellectual Property Management Procedure and the Confidentiality Agreement to

comprehensively strengthen the creation utilization protection and management of intellectual

property rights and protects the related structural design preparation methods and process of core

technologies. While safeguarding our independent intellectual property rights we fully respect the

intellectual property rights of others. We commit to avoiding infringement of others’ intellectual

property rights and conscientiously fulfilling confidentiality obligations especially in technical and

business cooperation with partners. Without written permission we disseminate no experimental

samples professional data and technical indicators to any third parties. Through these initiatives

we have maintained a fair competition order to ensure the healthy development of the market.* Prevention and control of intellectual property infringement risks. To address the risk of

intellectual property infringement the Company has established a mechanism for identifying

6 12024 ESG Report of DSBJ

and warning intellectual property infringement risks and conducted comprehensive

assessments of potential infringement risks related to the Company’s innovative technologies.If it is detected that the potential risks are significant the Company will mitigate potential

patent infringement risks in R&D projects by adjusting other process technologies or

characterization methods. Before submitting patent applications to the National Intellectual

Property Administration it needs to conduct patent searches and if there are similarities in

patents core technology upgrades are initiated.* Enhancing intellectual property training. The Company places significant emphasis on

enhancing employees’ awareness of intellectual property protection. We conduct regular

intellectual property training sessions to strengthen employees’ recognition and understanding

of intellectual property protection by explaining relevant cases of intellectual property

infringement thereby increasing employees’ awareness of confidentiality regarding the

Company’s key core technologies and core products.

3.1.3 Impact Risk and Opportunity Management

To effectively address various risks such as rapid technological iteration market competition

risks intellectual property risks and policy and regulatory risks DSBJ emphasizes cross-functional

teamwork in R&D marketing and production closely following market trends technological

trends and policy developments to ensure that product development is closely aligned with

customer needs thereby enabling rapid response to market changes and reducing the risk of

deviation in R&D innovation. Throughout the full lifecycle of R&D projects the Company

systematically conducts risk identification assessment and monitoring and dynamically adjusts

R&D risk management strategy based on evolving internal and external conditions to ensure

controllable risks across all R&D activities.

3.1.4 Indicators and Targets

Indicators and Targets Achievement in 2024

Targets achieved

Ensure R&D investment The amount of R&D investment in 2024 totaled RMB 1.267

billion accounting for 3.45% of revenue.

6 22024 ESG Report of DSBJ

Targets achieved

Increased number of patent An annual increase of 140 effective patents with a cumulative

total of 954 effective patents obtained

applications and grants

An increase of 51 software copyrights within the year with a

cumulative total of 115 software copyrights obtained

3.2 Quality Priority

3.2.1 Governance

As excellent product quality is the cornerstone of industrial development the Company

continuously strives to deliver products of the utmost quality and reliability. The Company has

established a product quality and safety working group which is composed of various division

quality management centers or quality departments of different business segments. This group is

responsible for the product quality management work of each business segment including

formulating quality policies and objectives and the construction implementation and continuous

improvement of the quality management system to ensure that each link meets quality standards. At

the same time the Company has established a cross-departmental collaboration mechanism and

works together with R&D procurement production and other functional departments to ensure that

hazardous substances in the Company’s products comply with applicable laws and regulations and

customer requirements.The Company has established a series of quality management policies in accordance with

international standards such as ISO 9001 IATF 16949 AS 9100 ISO 13485 VDA 6.3 and ISO

9004 in combination with customer audit requirements which include the Quality Management

Manual the Research and Development Cycle Management Procedure the Incoming Material

Inspection Procedure the Final Quality Inspection Procedure the Non-conforming Product Control

Procedure the Corrective and Preventive Action Procedure the Customer Quality Complaint

Handling Procedure etc.. With these quality management policies we have ensured the high

reliability and high consistency of products throughout their full lifecycle.

3.2.2 Strategy and Management Mechanism

DSBJ anchors its operations in customer needs. By integrating customer needs and high-

6 32024 ESG Report of DSBJ

standard quality requirements into every phase of the business chain namely from product design

R&D procurement and production to sales and post-sales services DSBJ has implemented strict

quality risk management throughout the product lifecycle. We have achieved efficient and precise

control relying on an intelligent manufacturing system ensuring the delivery of customer-satisfying

high-quality products.The Company’s main production and operation bases have all obtained ISO9001 quality

management system certification and IATF16949 quality management system

certification.

3.2.2.1 Full Life Cycle Quality Management

The Company standardizes the research and Digital quality management

development management process and carries out

Through the establishment of

new product development design in accordance

an intelligent information

R&D quality with the Research and Development Cycle

fusion production system

management Management Procedure in order to prioritize

centered on data with deep

controlling important nodes throughout the new

interaction across multiple

product development process to enhance the

platforms and systems the

quality of our R&D efforts.Company leverages systems

such as Lesson Learn E-

With a more accurate understanding of customer

Audit QMS SRM MES to

Project requirements the Company develops project

strengthen statistical analysis

quality control plans and clarifies project control standards

of quality information data

management to ensure project management quality strictly

throughout the entire process

through scientific methods.thereby promoting the

The Company comprehensively identifies the key

Manufacturi construction of smart

processes and elements of the manufacturing

ng process factories and systematically

process management from the perspectives of

quality improving product quality.“people machines materials methodscontrol

6 42024 ESG Report of DSBJenvironment and measurement” to strengthen the

process quality control through quality control

processes thereby ensuring the reliability and

consistency of product quality.The Company requires suppliers to pass quality

management system certifications such as ISO

9001 and IATF 16949 and conducts new supplier

certification new material certification incoming

Supply material inspection and supplier performance

chain quality management according to system documents such

management as the Incoming Material Inspection Procedure.For detailed information please refer to the chapter“Excellent Governance for Stable and EfficientOperations/Sustainable Supply Chain” in this

report.The Company has established an efficient customer

response mechanism according to the Control

Procedures for Processes Related to Customers to

Customer ensure that customer needs can be agilely

demand responded to and clearly reflected and

response implemented in all aspects of the business chain

while guaranteeing the high quality of products

thereby delivering high-quality products that

satisfy customers.

6 52024 ESG Report of DSBJ

Precision Manufacturing Division —Quality House Model

Customer Satisfaction Pragmatic Execution

Cost Optimization C Robust Skills

Timely Delivery D Effective Incentives & Punishments

Consistent & Stable Product Quality Q Qualified Materials

Reliable Equipment Accurate Standards

Rigorous Review Strong Awareness

1. Reliable Equipment 5. Robust Skills

1.1 Error-Proof Coverage Rate 5.1 Skill Planning + Strict

Certification

1.2 Reduced Anomaly Alerts 5.2 Knowledge & Competency

Assessments

2. Rigorous Review (Strict Rule Enforcement) 6. Effective Incentives &

Punishments (Accountability for

Violations)

2.1 Focus on Key Points/Challenges/Pain Points 6.1 Quality/Process Discipline

2.2 Closed-loop Verification Tracking 6.2 Participation in On-site Quality

6 62024 ESG Report of DSBJ

Management

3. Strong Awareness 7. Qualified Materials

3.1 Ten Manufacturing Principles 7.1 Strict Supplier Capability

Evaluation

3.2 Consequences of Quality Failures 7.2 Supplier Improvement Support

4. Pragmatic Execution (Rule Compliance) 8. Proper Standards (Based On

Law)

4.1 Escalation Protocol 8.1 FMEA/CP/SOP Alignment

Updates

4.2 Rapid Problem Resolution 8.2 Clear Role & Process

Responsibilities

* Quality Inspection System

In order to better prevent potential product safety and quality issues the Company has

established a product and process reliability testing process and evaluation standards to achieve full

process product reliability risk management for technical elements product development and mass

production processes. We continuously improve quality standards and inspection procedures and

conduct strict inspections on products in strict accordance with the requirements of the Incoming

Material Inspection Operation Management Measures the Process Inspection Operation

Management Measures and the Product Inspection Control Procedures throughout the entire

quality management process including incoming material inspection intermediate product

inspection packaging material inspection and product inspection. Through real-time trend analysis

and monitoring of product inspection we ensure that strict quality control is carried out at every

stage from the entry of raw materials to the exit of products. For new or potential quality problems

we prioritize preventive testing solutions such as error prevention and equipment automation to

ensure that key quality elements are properly controlled.The Company has set up multiple laboratories equipped with advanced research and

6 72024 ESG Report of DSBJ

development equipment and testing instruments to conduct adhesion tests solvent resistance tests

hardness tests impact resistance tests salt spray tests etc. to provide long-term services for new

product research and development mass production product quality control and after-sales service.In terms of special testing the Company has established long-term cooperative relationships with

authoritative and certified third-party laboratories and arranges to send third-party laboratories for

testing of items that cannot be accurately tested in-house or products that require test reports issued

by authoritative organizations.Products must pass through product safety and reliability tests before mass production and

those failure to pass through the tests shall receive continuous improvement until they are qualified

so as to ensure that the product meets customer acceptance testing requirements. Any problems

found in the reliability testing process should be fed back to the production department for

continuous review and improvement to ensure product quality and stability.Key checkpoints for material and product inspection

The Company conducts quality inspections on materials To ensure the

Incoming

during the material incoming stage to ensure that the effectiveness of

material

production materials and packaging materials meet inspections and

inspection

requirements. tests at all

stages all

The Company conducts patrol inspection on the

Manufacturing measuring

manufacturing process and regular process capability

process patrol instruments are

analysis activities while monitoring the working process to

and sampling regularly

ensure that intermediate products meet the requirements

inspections calibrated with

during the production process.critical

characteristic

Finished The Company conducts strict inspections of finished

measuring

product products to ensure that only products on their appearances

instruments

inspection functions and sizes meeting the qualified standard

6 82024 ESG Report of DSBJ

requirements can be delivered and the finished products receiving MSA

have met the shipping requirements. evaluation.The Company implements reliability testing regularly to

Reliability

identify and intercept potential defects or risks in the

testing

products.* Product Recall and Non-conforming Product Management

The Company has established the Product Recall Procedure and the Non-conforming Product

Control Procedure to standardize the management procedures for non-conforming products and

clarify the responsible departments for each process to strictly control quality. If any defective

product causes an accident the Company will immediately take damage control measures to identify

the cause of the defect and completely eliminate the problem and carry out review work in a timely

manner to make continuous improvement from both technical and management aspects to prevent

the recurrence of quality incidents.* Quality Culture for all Employees

The Company continues to strengthen its quality culture development by implementing annual

quality training programs for all employees. These programs cover quality philosophy quality

control methods and corrective action implementation etc. to enhance all employees’ awareness

and competencies in quality management. Concurrently we carry out diversified quality

improvement initiatives and routinely disseminate quality management best practices in the

Company. Through various quality management promotion campaigns such as quality monthsQuality Control Circles (QCC) etc. the Company has cultivated a cultural atmosphere of “everyonecares about high quality everyone creates high quality and everyone enjoys high quality”.Quality training covers 100% of all quality-related employees.Multek held an annual The precision Rf Top Electronic held a quality

6 92024 ESG Report of DSBJ

quality work summary manufacturing division competition including an online

and commendation held an engineering skill competition involving all employees

conference to recognize competition named and an internal auditor knowledgefactories teams and “Building the Future competition to enhance overallindividuals with through Craftsmanship” quality awareness. The company alsooutstanding to enhance engineers’ implemented rigorous “strict input-contributions setting problem-solving skills. output” improvement projects

benchmarks and role targeting identified quality

models. vulnerabilities executing specialized

corrective initiatives to elevate

product quality and customer

satisfaction.

3.2.2.2 Product Chemical Safety

The Company is dedicated to minimizing environmental impacts associated with our

operations. To address this we have established a chemical safety working group responsible for

advancing chemical safety management issues such as chemical risk identification hazard

prevention emergency response strategies and the development of phase-out plans for hazardous

chemicals. We have systematically catalogued and formulated a comprehensive list of chemicals

required for and resulting from our production processes. Additionally we have implemented

whole-process management for the use of chemical substances throughout the entire process from

procurement to the final stages of usage so as to strictly manage hazardous chemical substances

present in raw materials and products and throughout the manufacturing processes. At the same

time the Company has also set chemical safety-related targets and regulates the completion of these

targets as an important part of management’s performance evaluation to ensure the reduction of

chemical substances that affect human health and the environment in the Company’s production

operations to a minimum.* Commitment and Declaration

The Company complies with the requirements of the EU Directive on the Restriction of

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Hazardous Substances in Electrical and Electronic Equipment (RoHS) (including extended

directives) the EU Regulation on the Registration Evaluation Authorisation and Restriction

of Chemicals (REACH) the Norwegian Prohibition on Hazardous Substances in Consumer

Products (PoHS) the International Electrotechnical Commission’s Standard on Material

Declaration for Products of and for the Electrotechnical Industry (IEC 62474) the Canadian

Prohibition of Certain Toxic Substances Regulations (SOR/2012-285) etc. We insist on

producing excellent products in line with green environmental protection norms and promise

that the content of hazardous substances in raw materials parts assemblies and finished

products in the Company has met the requirements of RoHS REACH and other HSF laws and

regulations as well as customer specifications. We also carry out investigations and third-party

testing for hazardous substance compliance according to the relevant standards so as to ensure

that the products produced and manufactured by us are all in compliance with the requirements.Restricted Substance Commitment

100% of our products are in compliance with the latest regulations on restricted substances in

products and customer specifications.The Company carries out investigations and third-party testing for hazardous substance

compliance on products to ensure that the content of harmful substances in the products is below

the limits specified by laws regulations and customer specifications. The hazardous substances

include but are not limited to:

* EU RoHS Directive 2011/65/EU (RoHS 2.0) and its amended directive (EU) 20151863:

lead and its compounds (Pb) cadmium and its compounds (Cd) mercury and its compounds

(Hg) hexavalent chromium and its compounds (Cr~6+) polybrominated biphenyls (PBB)

polybrominated diphenyl ethers (PBDE) bis(2-ethylhexyl) phthalate (DEHP) butyl benzyl

phthalate (BBP) dibutyl phthalate(DBP) and diisobutyl phthalate (DIBP)

* EU (EU) Directive 2019/1021 (EU Persistent Organic Pollutants Directive):

hexabromocyclododecane (HBCDD)

* Halogen-free material management requirements: fluorine (F) chlorine (Cl) bromine

(Br) iodine (I)

* REACH substances of very high concern

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* Improvement of Hazardous Substance Control List

In accordance with laws and regulations industry standards and international conventions on

hazardous chemical substance such as RoHS and REACH the Company combined with hazardous

substance control specifications and management documents received from clients has formulated

a detailed and dynamically updated Hazardous Substance Control List to specify the restricted

chemical substances in use and manufacturing process. At the same time the Company has

established elimination replacement or reduction plans for prohibited and restricted chemicals in

the Hazardous Substance Control List strictly prohibiting the re-importation of phased-out

substances into any production and non-production stage.Hazardous Substance Control List

RoHS 2.0 Revised Appendix XVII

POPs Regulations SVHC

TSCA Act New National Standard for VOC

California Proposition 65 PAH Regulations

REACH Regulation Customer Requirements

Appendix XIV Hazardous Substances Control List

* Chemical Substance Control Management Throughout the Product Lifecycle

For chemicals involved in product design and manufacturing processes the Company has

established a full lifecycle management system for hazardous substances in the products through a

series of toxic and hazardous substance and chemical management institutional norms developed

by the Company such as the Chemical Management Procedure the Hazardous Substance Risk

Management Procedure the Measures for Restriction of the Use of Hazardous Substances in

Electrical and Electronic Products and the Product Environmental Management Standards to

prevent and control potential risks of hazardous substances in products to ensure the safety.When there are significant adjustments in relevant laws and regulations or company policies

7 22024 ESG Report of DSBJ

the Company will update and adjust the hazardous substance management regulations in a timely

manner and send them to all suppliers synchronously. The suppliers are required to fill in the

Hazardous Substance Evaluation & Declaration Report again and the Company will manage and

audit the suppliers according to the latest standards. The Company maintains a continual assessment

of the hazards associated with chemicals used across various stages of the product manufacturing

process. We integrate environmental and health standards throughout all phases from product

development design to production to establish a management mechanism together with

implemented action measures to prevent the use of hazardous substances. This initiative enables us

to build a comprehensive hazardous substance management system to achieve comprehensive

oversight and control.The Company regularly conducts chemical safety training. Employees are required to attend

corresponding training on environmental hazardous substance control to systematically learn

RoHS basic knowledge and customer requirements IECQ QC 080000 hazardous substance

process management internal procedures for environmental hazardous substance control

chemical safety and other knowledge. In addition the Company actively maintains close

communication with suppliers and partners providing hazardous substance management

training to suppliers to ensure that they understand and comply with relevant standards and

requirements. DSBJ and its subsidiaries namely Dongshan Sheet Metal Mutto Optronics

Yancheng Dongchuang Multek Industries Multek China Ltd. etc. have all been certified

through the IECQ QC 080000 hazardous substance process management system.Product Lifecycle Management

The Company has established a complete process specification for chemical

product design development and use. We review new products according to the

R&D and R&D Cycle Management Procedure combining with design drawings

design inspection standards clients’ HSF requirements and HSF laws and regulations.We assess our designs according to the RoHS Design Control Procedure and

specify that it is prohibited to use the Company’s level I hazardous substances

7 32024 ESG Report of DSBJ

in the design of all material control drawings. Materials selected during the

assessment phase must pass RoHS certification and provide third-party test

reports such as MSDS/SGS simultaneously.The Company continues to carry out green procurement and requires products

provided or processed to comply with the Environmental Hazardous Substance

Control Standards and the requirements of relevant laws regulations and

Green government directives. Suppliers are required to provide declaration reports

procurement annually (e.g. Multek suppliers are required to provide the Hazardous Substance

Review & Declaration Report annually) third-party hazardous substance test

reports (including RoHS test reports/REACH reports) and updates. Only

chemicals that have passed compliance audits can be allowed for use.In order to ensure that chemicals are purchased handled stored dispensed

used discarded and disposed of in an emergency in a safe manner avoiding

Manufacture

hazards to human health as well as preventing pollution accidents each business

process

segment has formulated the Chemical Management Procedures Guidelines for

management

Safe Work in Chemical Storage and other institutional norms to improve the on-

site management of hazardous chemicals throughout the entire process.In strict accordance with product design management specifications and related

shipping management procedures the Company has confirmed that the

components and materials constituting the products are in line with the

Hazardous Substance Control List under shipping inspection items or customer-

Delivery specific requirements. We entrust third-party testing institutions to conduct

management inspections on hazardous substances under customer requirements to ensure that

the hazardous substances contained are below the limits required by laws

regulations and customer specifications. Qualified products should be labeled

with environmental compliance labels or attached with the necessary test reports

and conformity declarations etc. according to relevant requirements.

7 42024 ESG Report of DSBJ

* Chemical Replacement

Under the long-term goal of gradually eliminating hazardous chemicals the Company explores

improvement opportunities in the management of restricted substances by continuously tracking

domestic and international legal and regulatory dynamics and benchmarking the latest standard

requirements of mainstream customers. Moreover the Company also promotes various business

segments to formulate advanced hazardous substance phase-out plans actively carrying out

chemical reduction and substitution efforts.Product hazardous substance reduction plan of Yancheng Dongchuang

Material Categories Regulated hazardous substances Permitted concentration

Mercury and mercury compounds Non-detectable

Hexavalent chromium and its

Non-detectable

compounds

Polybrominated biphenyls (PBB) Non-detectable

Raw materials and Polybrominated diphenyl ethers

Non-detectable

products (PBDE)

Benzyl butyl phthalate (BBP) Non-detectable

Dibutyl phthalate (DBP) Non-detectable

Diisobutyl phthalate (DIBP) Non-detectable

Bis(2-ethylhexyl) phthalate (DEHP) Non-detectable

Ink Lead (Pb) Non-detectable

Metal Cadmium and its compounds Non-detectable

CCL/PP/Inks/Important

chemicals and products Organic halogen compounds (only Halogen content 93%

for manufacturing bromine and chlorine) Halogen-free 7%

process

Cd + Pb + Hg + Cr (VI)

Cadmium lead mercury hexavalent < 100ppm and Cd <

All packaging materials

chromium 5ppm Pb Hg Cr (VI):

non-detectable

Note: The allowable concentrations of hazardous substances for the above products are scheduled

to be achieved in stages from 2025 to 2026.[Case] MFLEX Yancheng UV laser protection film window project

In 2024 MFLEX Yancheng made great efforts in the research and development of the UV laser

protective film window project. This project employs laser technology to achieve high-efficiency

solder mask opening processes. By eliminating developing lines it reduces chemical pollution

7 52024 ESG Report of DSBJ

from wet processes while phasing out photosensitive inks minimizes volatile organic compound

emissions. These streamlined workflows further optimize facility space utilization.

3.2.3 Impact Risk and Opportunity Management

During the quality risk assessment process DSBJ systematically identifies multiple potential

risks including design/R&D risks raw material/supply chain risks production/process risks

hazardous substance risks and regulatory compliance risks. With continuously strengthened quality

risk management the Company promotes all business segments to establish internal institutional

norms such as the Risk Management Rules for Quality Management System Process and the

Organizational Environment and Risk Control Procedure clearly defining the processes of and

requirements for quality risk identification analysis evaluation mitigation and monitoring.Through various risk management tools such as Advanced Product Quality Planning (APQP)

Measurement System Analysis (MSA) In-Process Quality Control (IPQC) Statistical Process

Control (SPC) Failure Mode and Effects Analysis (FMEA) Control Plans (CP) and Production

Part Approval Process (PPAP) we have formulated corresponding control measures for different

levels of quality risks strictly controlling potential quality risks throughout the product lifecycle.To ensure the effective operation of the quality system the Company has established a

comprehensive quality audit mechanism and encouraged all business segments to formulate the

2024 audit plan including internal quality audits third-party system certification audits and

customer audit inspections. These initiatives can help us identify potential issues and non-

conformity in a timely and accurate manner ensuring the effectiveness of the quality management

system.In addition the Company regularly conducts the identification assessment and control of

hazardous substance risks based on the overall risk management normative framework and

documents such as the Hazardous Substance Risk Management Procedure and the Supplier’s

Hazardous Substance Management Procedure in order to safeguard product quality and safety.

3.2.4 Indicators and Targets

Indicators and Targets Achievement in 2024

No customer complaints for hazardous Targets achieved

7 62024 ESG Report of DSBJ

substance

None of the supplier’s incoming materials Targets achieved

violate the HSF standards.

3.3 Professional Services

3.3.1 Customer Relationship Management

Guided by a customer-centric approach DSBJ strives to provide customers with

comprehensive one-stop and technologically advanced solutions to meet their customized needs.We continuously the customer service system to ensure quick responses and efficient handling of

customer requests thereby establishing a good and long-term relationship with customers.* Quality Service

By deeply understanding the expectations and needs of our customers we provide personalized

solutions to customers and are committed to responding to customers with reliable services promptly

throughout the entire customer service process covering pre-sale in-sale and after-sale stages. We

render efficient professional and high-quality services oriented towards customer needs.Subject to service management systems such as the Control Procedures for

Processes Related to Customers and the Customer Satisfaction Management

Improving

Procedures we streamline the entire service process covering pre-sale in-

service system

sale and after-sale stages to promote the standardization and efficiency of

service processes.We communicate with customers through multiple channels such as emails

Facilitating phone calls video conferences and offline visits and regularly meet

communication customers to listen to their opinions and feedback on the Company and its

channels products and promptly address any issues raised by customers thus

establishing a good trust relationship with customers.* After receiving customers’ service requests we respond efficiently and

Responding

arrange personnel to provide service support in a timely manner.demands

promptly * We adopt digital technologies such as automation and artificial

intelligence to expedite the order processing speed and the confirmation

7 72024 ESG Report of DSBJ

of customer order-related information enhancing the efficiency and

accuracy of customer service.Through more excellent service awareness and professional skills training

we improve the service response system and elevate our professional service

capabilities.* MFLEX Electronics established customer reception offices by regionProfessional implementing 24-hour service support through a structure of “dedicatedservice support personnel stationed at specific points + flexible personnel”.* Suzhou Dongyue set up an exclusive service team for its key customers

which provided one-stop and comprehensive services covering early

project docking product customization development and continuous

tracking after mass production delivery.* Customer Complaint Management

The Company values customers’ opinions and feedback and drives various business segments

to improve their customer complaint management. The Company has formulated a series of

institutional documents such as the Customer Complaint Handling Process the Customer

Complaint Handling Process Management Measures to establish an efficient response and

processing mechanism. For customers’ feedback we have carried out an analysis and made active

rectifications to ensure that our solution can meet the requirements of the customers.Complaint Handling Process

Timely processing Exception investigation Improvement tracking

Customers can file complaints The Company will investigate The Company will analyze

or provide feedback through the defective products and the reasons and provide

the 24-hour toll-free service related matters based on timely feedback to customers

hotline. The Company will customer feedback. clarifying corrective and

promptly handle customer preventive measures for such

complaints with a focus on events with prompt correction

understanding the issues and prevention of related

thoroughly and maintain problems.

7 82024 ESG Report of DSBJ

detailed records of customer

complaints and solutions.Customer complaint response rate is 100%

Customer complaint resolution rate is 100%

* Customer Satisfaction Management

The Company mandates all business segments to establish an institutional framework

composed of the Customer Satisfaction Management Procedures the Service Delivery and

Customer Satisfaction Management Procedures and the Customer Satisfaction Monitoring and

Measurement Guidelines etc. We conduct regular customer satisfaction surveys across key

functional areas such as procurement quality assurance engineering technical support and

customer service and make systematic customer follow-ups according to findings from these

surveys enabling timely identification of issues and implementation of targeted improvement

measures to continuously enhance product and service quality.MFLEX’s customer Multek’s customer satisfaction LED division’s customer

satisfaction rate: 98% rate: 96% satisfaction: 96%

Touch control division’s customer satisfaction: Precision manufacturing division’s customer

91%-96% satisfaction: 92%-98%

3.3.2 Responsible Marketing

With adherence to a scientific rigorous and responsible marketing promotion concept DSBJ

strictly complies with the Consumer Rights Protection Law of the People’s Republic of China the

Anti-Unfair Competition Law of the People’s Republic of China the Advertising Law of the People’s

Republic of China and other laws and regulations and relevant provisions. We have formulated a

series of institutional norms such as the Sales Management System the Market Development

Management Specifications and the Project Operation Management Specifications which provide

accurate and comprehensive information in market development customer sales and product

labeling management ensuring that products are promoted in an ethical scientific and objective

7 92024 ESG Report of DSBJ

manner.* Marketing Compliance Management

The Company continues to improve the responsible marketing compliance management

system and clarifies marketing compliance responsibilities and processes. In the marketing

promotion process with strict adherence to anti-unfair competition and anti-monopoly requirements

all promotional information should be accurate clarified and transparent and any violations in

marketing activities should be promptly addressed. In accordance with the Code of Business Ethics

and other documents it is clearly provided that when employees expand business and engage in

commercial activities they should comply with relevant national laws and regulations and the

Company’s code of ethics and conduct external business activities in accordance with the

Company’s procedures and disciplines.* Marketing Review Management

The Company establishes a standard process for product information generation and review to

ensure all information is verified. With a multi-party review mechanism established product

information is required to be reviewed by R&D quality legal marketing and other departments to

ensure accuracy and compliance and free of any false exaggerated or misleading information. If

necessary third-party organizations will be introduced for independent reviews to ensure the

information is objective and accurate.* Responsible Marketing Training

The Company promotes each business segment to formulate an annual responsible marketing

training plan. Yancheng Dongshan and MFLEX Electronics regularly conduct specialized training

for marketing personnel on product knowledge responsible marketing-related regulations customer

communication business ethics etc. Through these initiatives we can ensure that our employees

accurately understand and convey product information and are aware of and subject to related

principles and regulations so as to achieve ethical scientific and precise communication.

8 02024 ESG Report of DSBJ

4. Advancing a Clean and Low-Carbon Production System for a

Greener Future

Sustainable Development Goals of the United Nations(SDGs)

4.1 Environmental Management

Under the principle of prioritizing environmental protection the Company integrates the

concept of green development into its operations to minimize the impact on the environment while

enhancing the Company’s competitiveness so as to achieve a win-win situation between economic

benefits and environmental protection.* Environmental Management System

The Company strictly complies with environmental protection laws and regulations such as the

Environmental Protection Law of the People’s Republic of China the Air Pollution Prevention and

Control Law of the People’s Republic of China the Energy Conservation Law of the People’s

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

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

and continuously improves the environmental management system in accordance with the

requirements of standards such as ISO 14001 environmental management system and ISO 50001

energy management system. The Company has set up an EHS working group composed of

employees from the company headquarters and each division EHS department responsible for

coordinating promoting and supervising various business segments to plan and implement EHS

812024 ESG Report of DSBJ

programs and objectives. The Company’s EHS management system covers 100% of all relevant

business segments.Each business segment of the Company formulates a series of institutional norms such as EHS

manuals environmental management manuals and related management procedures and sets

environmental management goals according to its own situation such as zero environmental

accidents meeting emission standards carbon reduction targets etc. These goals are then separated

and cascaded down to relevant departments the completion of which is linked to the performance

evaluation of relevant management personnel (in the form of a veto item regular assessment item

bonus item).Indicators and Targets Achievement in 2024

No major environmental Targets achieved

pollution incidents

Ensuring 1 or 2 new entities are Targets achieved

certified to management system MFLEX: UL 2799 Zero Waste to Landfill ISO 14067

green low-carbon related Product Carbon Footprint

systems or granted with honors Mutto Optronics: ISO 50001 Energy Management System

JDI Electronics: ISO 50001 Energy Management System

ISO 14064 Greenhouse Gas Verification

Yancheng Dongchuang: ISO 14001 Environmental

Management System

Suzhou Dongyue: ISO 14001 Environmental Management

System

Total environmental investment for the year amounted to RMB 254584200.MFLEX Multek Touch Technology Division LED Division part of plants of Precision

manufacturing division (Rf Top Electronic Suzhou Dongyue Yancheng Dongchuang Sheet

Metal Plant) DSBJ PTE. LTD. has all passed the ISO 14001 environmental management

system certification.

8 22024 ESG Report of DSBJ

MFLEX Suzhou has been awarded the title of Jiangsu Province Green Factory and that of

Jiangsu Province Green Development Leading Enterprise; and Multek Industries has been

awarded the title of Guangdong Province Green Factory.Multek China Ltd. Multek Industries Multek Electronics and Multek Technology have beenrecognized as the “2023 Advanced Enterprise in Green Manufacturing and EnvironmentalProtection”.MFLEX Yancheng Multek China Ltd. and Multek Industries have passed the clean

production audit.* Environmental Risk Prevention and Control

The Company continuously improves the environmental risk control mechanism in

combination with the requirements of the ISO 14001 environmental management system. We

actively promote environmental impact assessments and hidden danger inspections in key plants

clarifying environmental factors that can be controlled and influenced in activities products and

services and supervising following and managing their environmental impacts from a lifecycle

perspective. We promote various production and operation entities to enhance environmental

emergency management formulate special plans for emergency environmental incidents and

conduct special emergency drills in order to improve their emergency response capabilities for

environmental incidents to minimize environmental impacts.* Environmental Audit

DSBJ has established an internal EHS audit mechanism to conduct regular environmental

audits across all production units. The audit scope primarily covers among others EHS compliance

the operation status of pollutant treatment facilities discharge of wastewater waste gas and solid

waste waste storage and disposal practices storage and usage of hazardous chemicals

environmental hazard investigations emergency response plans and emergency drills. The auditing

methods include headquarters audits (quarterly) strict self-inspection by subordinate enterprises

and self-monitoring conducted by accredited third-party testing companies as needed. In addition

all operational bases regularly cooperate with regulatory authorities and external stakeholders to

carry out external environmental audits. The Company sets rectification deadlines based on the

8 32024 ESG Report of DSBJ

severity of audit findings with dedicated departments continuously tracking corrective actions to

ensure the applicability and effectiveness of the environmental management system.* Environmental Protection Training

The Company regularly conducts special training activities on environmental protection

organizing employees to learn about environmental laws and regulations standards systems and

the implementation of environmental management through various forms so as to help employees

enhance awareness and capabilities in environmental protection. During the reporting period the

environmental protection training covered 100% of the main operating bases.The Company’s headquarters and MFLEX JDI Electronics environmental training

division organized a special seminar on zero

waste to landfill

Environmental facility maintenance EHS Training in DSBJ PTE. LTD. (the

training in Dongchuang Plant of Precision Mexican branch)

Manufacturing Division

4.2 Addressing Climate Change

4.2.1 Governance

DSBJ establishes a sound governance structure to continuously improve the identification

8 42024 ESG Report of DSBJ

assessment management and disclosure of climate risks and opportunities. The Board of Directors

assumes a leadership role in the management of and decision-making on climate change issues. It

is responsible for reviewing the assessment of ESG-related risks and opportunities including

climate change issues and approving climate-related plans targets and response programs and

overseeing their implementation. The EHS working group is responsible for assessing and analyzing

climate change risks and opportunities formulating strategic goals and implementation plans to

address climate change and promoting the practice of relevant work through closed-loop

management. This working group also regularly collects and tracks climate change-related data and

target progress.

4.2.2 Strategy and Management Mechanism

After fully analyzing the risks and opportunities brought by climate change DSBJ has

integrated climate action into its corporate strategic decision-making. We incorporate green and

low-carbon requirements throughout the entire project lifecycle - from planning and construction to

operation - while promoting green transformation to strengthen climate resilience.

8 52024 ESG Report of DSBJ

Category Risk/Opportunity Description Impacted Cycle Potential financial Response measures

impact

Physical risk Acute * Extreme weather events Short-term Medium- Operating revenue ? * Strengthen the identification

risk triggered by climate change and-long-term Operating costs? and management of climate

(such as floods typhoons high Fixed asset value ? change risks and improve

temperatures etc.) may cause emergency plans to enhance the

direct damage to DSBJ's assets ability to respond to extreme

and production facilities which weather events ensuring

will affect normal production business continuity.and operations. * Optimize the supply chain

layout to reduce dependence on

Chronic * Rising temperatures and water Long-term Operating costs ? high-risk areas.risk resource risks may affect supply

chain stability and increase

operating costs.

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Category Risk/Opportunity Description Impacted Cycle Potential financial Response measures

impact

Transition Policy and * Responses to policy changes Medium-term Long- Operating costs ? * Proactively connect with local

risk regulatory may lead to increased company term policy authorities timely

risks costs and strengthened researching following up and

operational constraints. promoting policy changes to

strengthen compliance

management.* Incorporate climate change

Market and * Due to continuously increased Medium-term Long- Operating revenue ?

responses into corporate

technologi customer demands for low- term Operating costs ?

strategy and proactively deploy

cal risks carbon products and green

low-carbon technology research

supply chains the layout of

and development low-carbon

green industries and

product development and

technologies will enhance the

industry layout to meet

competitiveness of the

customer demands for low-

Company’s products. However

carbon solutions thereby

since the low-carbon

8 72024 ESG Report of DSBJ

Category Risk/Opportunity Description Impacted Cycle Potential financial Response measures

impact

transformation requires enhancing market

significant technological competitiveness.innovation and process * Clarify the Company’s

equipment upgrades we may development path under the

make a large investment in the “dual carbon’ goal” conducting

research and development and a comprehensive assessment of

application of low-carbon investment returns and

technologies. feasibility before implementing

Climate Products * Seize opportunities in green Medium-term Long- Operating revenue ? low-carbon transition projects

Opportunities and industry development to create term and adopting the optimal

services new product directions and solution based on actual

solutions through low-carbon conditions.technology R&D and green

product development so as to

enhance product

8 82024 ESG Report of DSBJ

Category Risk/Opportunity Description Impacted Cycle Potential financial Response measures

impact

competitiveness and explore

new growth points.Resource * Increased investment in low- Medium-term Long- Operating costs? * By optimizing the energy

efficiency carbon technology R&D can term structure and strengthening

improve energy utilization energy management we tap into

efficiency reduce production the emission reduction potential

costs and enhance market and reduce energy consumption

competitiveness. costs.

8 92024 ESG Report of DSBJ

4.2.2.1 Clean Technology Opportunities

Upholding the concept of green development DSBJ has established a core strategic focus on

the dual drivers of “consumer electronics + new energy” by integrating clean technology innovation

into the company strategy. Under this strategy we are fully concentrating on the two core tracks:

consumer electronics and new energy. While steadily advancing its consumer electronics business

the Company leverages its technological expertise accumulated in consumer electronics and

communication equipment to deeply expand into industries like new energy vehicle core

components. With continuous innovative research and development in the field of new energy

vehicle components we have established an industrial development framework centered on

consumer electronics and new energy vehicles striding confidently toward a new era of green and

high-quality development.In recent years the Company has accelerated its new energy business through a series of

strategic layouts including supplying new energy vehicle clients with electronic circuit products

(FPC and rigid boards) vehicle displays and functional structural components. Our acquisition of

foreign enterprises such as Aranda AutoTech US and AutoTech Mexico further consolidates the

cooperative relationship with new energy vehicle and energy storage clients in North America. As

the overseas production base in Mexico and the new energy vehicle component production base in

Kunshan City have officially commenced operation the synergy effects of the Company’s industrial

chain continue to strengthen providing more product solutions for customers in the new energy

vehicle industry. In addition the Company is actively laying out in the energy storage field

continuously expanding its product line to meet the market demand for high-performance battery

management systems.In 2024 DSBJ made significant progress in the fields of new energy such as new energy

vehicles and energy storage business. The Company’s core business electronic circuits achieved

sales revenue of RMB 24.8 billion. The new energy business realized a revenue of approximately

RMB 8.65 billion with a year-on-year increase of 36.98% accounting for about 23.52% of total

revenue. Therefore it has become a new growth driver for the Company’s high-quality development.In the future the Company will continue to align its R&D and production expansion with the high-

902024 ESG Report of DSBJ

end consumer electronics and new energy sectors continuously diversifying product portfolios and

solution offerings to contribute to the advancement of the global new energy industry.While expanding into the green industry the Company is also committed to providing more

environmentally friendly high-quality products. By increasing the R&D and promotion of clean

technologies the Company actively applies new materials new equipment new processes and new

technologies to provide more environmentally friendly solutions for the industry.

4.2.2.2 Low Carbon Operations

In active response to the national “dual carbon” initiative the Company proactively formulates

carbon neutrality goals and pathway planning and progressively drives all divisions to improve

energy management frameworks and develop energy management target plans. We conserve energy

and reduce emissions from three perspectives namely management-driven energy conservation

technological energy conservation and energy structure optimization to continuously enhance

corporate energy management capabilities to achieve low-carbon operations.The parent company of DSBJ and MFLEX Suzhou MFLEX Yancheng Multek Industries

Multek China Ltd. JDI Electronics Mutto Optronics have all passed the ISO 50001 energy

management system certification.MFLEX Multek JDI Electronics Mutto Optronics have all passed the ISO 14064 Greenhouse

Gas verification.MFLEX Suzhou and Multek Industries have all passed the ISO 14067 carbon footprint

certification.* The Company drives all divisions to formulate a series of institutional norms

Manageme

such as the Energy Management Manual and the Energy Management

nt energy

Procedures establishing and improving energy conservation and emission

conservatio

reduction indicator systems monitoring systems and assessment systems to

n

achieve controllable and manageable energy usage. We also establish an

9 12024 ESG Report of DSBJ

energy conservation team to conduct energy-saving audits and manage

review meetings for regular evaluation of energy management goals to ensure

their steady progress.

01 On-site audit 04 Improvement tracking

02 Report submission 05 Improvement confirmation

03 Improvement plan 06 Continuous improvement

submission

* The Company promotes key operating entities to gradually establish a smart

energy online monitoring system. We achieve real-time monitoring and

analysis of energy consumption of major equipment to promptly detect

abnormal energy consumption. We also grasp energy consumption trends and

changes at different positions and time periods by virtue of information

technology and big data analysis to identify energy-saving improvement

opportunities. And accordingly we continuously optimize energy use

strategies to further improve the Company’s energy efficiency.Technologi The Company replaces old high-energy-consuming and inefficient equipment and

cal energy adopts more efficient production technologies and processes to improve energy

conservatio efficiency and achieve operational emission reduction.n

The Company increases the consumption proportion of clean energy and

Energy

renewable energy and gradually increases the share of green electricity through

structure

measures such as expanding photovoltaic power generation and purchasing green

optimizatio

electricity. Photovoltaic power generation equipment is installed in all effective

n

places of the plants.

9 22024 ESG Report of DSBJ

Case: MFLEX Suzhou fully implements the “dual carbon” action to promote green

and high-quality development

MFLEX Suzhou has established an energy dual carbon management team and formulated

comprehensive energy management regulations including the Management Procedures for

Baseline Performance Parameter of Energy Target Indicators the Energy Design Management

Procedures the Energy Operation Management Procedures the Energy Measurement

Management Objectives and Implementation Evaluation Work Instructions and the Energy

Review Management Procedures. With these regulations MFLEX Suzhou systematically

advances energy conservation and emission reduction through demand-side and supply-side

initiatives while actively pursuing certifications such as ISO 50001 Energy Management

Systems ISO 14064 Greenhouse Gas Verification and ISO 14067 Carbon Footprint

Certification to transition toward green high-quality development. In 2024 MFLEX Suzhou

completed a total of 20 energy-saving projects saving a cumulative electricity amount of 13.05

million kWh.MFLEX Suzhou’s “dual carbon” goal: Achieving carbon neutrality at the operational level by

2030

MFLEX Suzhou’s energy conservation and emission reduction goal for 2024: 3% reduction

9 32024 ESG Report of DSBJ

in output energy consumption compared to 2023

* Enhance the precision management level of energy consumption statistics and monitoring:

MFLEX Suzhou expanded the coverage of on-site energy metering (metering instruments

were installed for energy-consuming equipment greater than 50kW) strengthened

integration with facility operations and MES data and normalized the monitoring of daily

on-site unit product energy consumption data in major processes (workshops) to improve

the precision management level of energy.* Improve processes and upgrade production equipment: MFLEX Suzhou replaced and

upgraded on-site wet process line fans and other equipment selecting the most energy-

efficient motors without affecting production conditions and product quality with an

expected energy saving rate of 50%.* Build rooftop photovoltaics to optimize energy structure: MFLEX Suzhou’s existing

rooftop photovoltaics totaled 4.4MW which ensured stable power generation. It also

purchased clean energy (wind/solar power) and green power certificates to contribute to

addressing climate change.* Promote energy-saving technologies: MFLEX Suzhou fully promoted entry-level projects

including energy-saving projects such as efficient lighting free cooling and compressed

air system waste heat recovery as well as boiler projects like economizer installation

condensate recovery and flue gas waste heat recovery.

9 42024 ESG Report of DSBJ

4.2.3 Impact Risk and Opportunity Management

DSBJ has established a process and framework for managing climate risks and opportunities

to identify analyze evaluate and clearly understand the scope of climate change risks and

opportunities thereby enhancing climate resilience.Identification of We identify climate risks and opportunities based on the framework

Climate Risks and recommendations of the IFRS Sustainability Disclosure Standards No. 2

Opportunities - Climate-related Disclosures and the Guidelines for Self-regulation of

Listed Companies No. 17 - Sustainable Development Report (Trial) from

Shenzhen Stock Exchange.Materiality Assessment We assess the likelihood of risk occurrence the degree of risk impact the

on Climate Risks and extent of financial impact etc. through internal and external

Opportunities environmental studies and risk management tools to identify significant

climate change risks and opportunities and their impacts on the Company.Management of Climate With the integration of material risks and opportunities into corporate risk

Risks and Opportunities management we continuously strengthen risk mitigation strategies

conduct targeted risk management and response initiatives and regularly

monitor and track implementation progress in order to ensure alignment

with policy trends market developments client requirements and other

critical factors.

4.2.4 Indicators and Targets

Indicators Unit 2024

Direct Gasoline Ton 82.42

energy Diesel Ton 56.16

Natural gas m3 6914644.40

Indirect Purchased electricity kWh 915239602.84

energy Solar energy/PV kWh 39323394.00

Total energy consumption tce 121882.54

GHG Direct GHG emissions (Scope 1) tCO2e 15525.31

9 52024 ESG Report of DSBJ

emissions Indirect GHG emissions (Scope 2) tCO2e 491117.57

Total GHG emissions (Scope 1 and tCO2e

506642.88

Scope 2)

GHG emission intensity tCO2e /RMB10000 0.1378

of revenue

4.3 Resource Utilization and Circular Economy

4.3.1 Water Resources Management

The Company’s water resources mainly come from the municipal water supply. The main

production and operation sites with large water consumption are located in areas with lower water

resource risk levels. The Company has formulated water management procedures and the EHS

Management Committee of each division is responsible for the coordination and supervision of

water resources management. We promote the establishment of water-saving teams/appointment of

water-saving specialists in key plants and formulate annual water-saving plans and implementation

schemes to minimize water consumption and promote the sustainable use of water resources. During

the reporting period the Company experienced no major violations related to water resources.* Water balance analysis. We conduct water balance analysis to measure and analyze the supply

use and discharge of water during the factory production process and formulate targeted measures

to improve water resource utilization rates. As of the end of the reporting period MFLEX Multek

and JDI Electronics have all carried out water balance analysis.* Water conservation. We formulate a water consumption quota plan and monitor and follow

up on the monthly water consumption situation to find out the weak links and strengthen the daily

water conservation management. We regularly maintain and manage the water consumption

equipment through water-saving facilities and appliances such as installing sensor water-saving

controllers in the sheet metal plant of the Precision Manufacturing Division to eliminate the

phenomenon of water leakage drip and spill. We also carry out water conservation publicity

activities with enhanced water conservation publicity efforts to advocate the water conservation

trend.

9 62024 ESG Report of DSBJ

* Water recycling. The Company actively promotes water recycling technology in production

operations. We renovate and upgrade recycling water treatment facilities for collecting treating and

reusing production wastewater to improve water resource utilization efficiency and reduce the

impact of wastewater discharge on surrounding water bodies. We retrofit or construct rainwater

reuse irrigation systems on production and operation sites purifying and treating collected rainwater

for greening cleaning and other non-potable uses so as to reduce the reliance on municipal water

supply.* Water risk reduction. During the selection process for new project investments we with full

consideration of water resource risks constantly monitor the risk of water shortages and assess water

use strategies to ensure that the water supply can guarantee necessary production operations.Case: MFLEX Suzhou practiced innovative water-saving management initiatives

MFLEX Suzhou comprehensively promoted the construction of water-saving factories

focused on strengthening employee water-saving awareness optimizing water equipment

management and innovating technology applications. In 2024 MFLEX Suzhou conducted

water-saving operational training for key equipment operators new employees and temporary

workers and selected personnel to participate in the “water saving specialist” training organized

by the district-level water affairs bureau to enhance professional management skills. The

company also implemented multiple water resource recycling projects achieving significant

water-saving benefits.* 100% reuse rate for RO concentrated water: The RO concentrated water is pretreated

through the water recycling system and redirected back to the purified water production

plant for reuse in manufacturing processes with an annual recycling volume projected at

500000 tons. Residual RO concentrated water can be used for toilet flushing with an

estimated annual tap water conservation of 35000 tons.* Rainwater resource utilization: Rainwater harvesting and treatment facilities are

constructed through which 12000 tons of rainwater can be reused annually for landscape

irrigation and cleaning purposes.* Production line water-saving renovation: The “Production Line Reverse-Flow Rinse

9 72024 ESG Report of DSBJSystem” is implemented for utilizing conductivity control technology to enable water

recycling within production line tanks with an annual water circulation volume of

1000000 tons.

Case: Multek installed intelligent water-saving devices

In 2024 Multek invested RMB 600000 to install intelligent water-saving devices and the

supporting online water-saving monitoring system for the five plating lines and DES lines that

consume the most water which is expected to save 71221 tons of water per year.Indicators Unit 2024

Total water intake Ton 8754913.91

Total water discharge Ton 6306144.37

Total water 2448769.54

Ton

consumption

Water consumption Ton/ RMB 0.6660

intensity 10000 of revenue

Water recycling Ton 65293717.32

Recycled water ratio % 88.18%

4.3.2 Green Packaging

DSBJ promotes the reduction of packaging materials throughout the product lifecycle in

packaging design production transportation and sales stages through internal recycling and

9 82024 ESG Report of DSBJ

resource recovery and reuse methods reducing the use of natural resources and the impact on the

ecological environment.Case: MFLEX implements tray recycling management

In the SMT (Surface Mount Technology) process plastic trays are extensively used to carry

flexible circuit boards (FCBs). MFLEX targeting “resource circularity” designed and advanced

a tray recycling and reuse model. After transporting FCBs to the stamping process trays undergo

visual inspections for cavity integrity and structural stability of support pillars and the qualified

trays are reused for the next batch of FCB loading. Accordingly a closed-loop management

system of “use-inspection-return” is established which can achieve cost reduction efficiency

improvement and green development.

4.4 Pollution Prevention and Ecosystem Protection

4.4.1 Emissions and Waste Management

The Company complies with relevant laws and regulations such as the Law of the People’s

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

Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste and

the Law of the People’s Republic of China on the Prevention and Control of Air Pollution as well

as local emission standards. We have established the “Three Wastes” Management Policy the

Hazardous Waste Management Policy and other relevant management procedure documents and a

comprehensive “three wastes” emission monitoring and control system involving various business

segments. We minimize the impact of emissions on the environment under the principle of

“reduction recycling and re-utilization” on the basis of ensuring compliance with emissions

standards. During the reporting period the Company encountered no incidents of exceeding

pollutant standards or illegal discharge of exhaust gas and wastewater nor any illegal violations

related to waste disposal.Indicators and Targets Achievement in 2024

100% compliance rate of “three wastes” emissions

0 environmental pollution accidents Targets achieved

9 92024 ESG Report of DSBJ

100% compliance rate of hazardous waste disposal

4.4.1.1 Wastewater Discharge Management

The Company’s wastewater mainly comes from domestic sewage and industrial workshop

wastewater. The Company has established targeted system guidelines such as the Water Pollution

Control Management Benchmark to regulate wastewater discharge control treatment processes

monitoring emergency management etc. Domestic sewage is discharged into the municipal sewage

network while production wastewater is discharged into the comprehensive wastewater treatment

system after meeting the standards through processes such as coagulation precipitation

biochemical treatment MBR membrane filtration etc.. The wastewater discharge at major operating

bases is monitored by internal management personnel and third-party personnel. The Company

optimizes the wastewater treatment process based on different production conditions to enhance the

effectiveness of pollutant treatment. We install online pollutant monitoring systems at discharge

outlets for connecting with national provincial and municipal environmental protection

departments to jointly monitor the discharge of wastewater including flow rate pH value chemical

oxygen demand ammonia nitrogen etc.Case : Grinding wastewater treatment project of the Touch Technology Division

The Touch Technology Division has customized a wastewater treatment plan for grinding

wastewater and cleaning machine wastewater. According to this plan wastewater will return to

the pure water system’s raw water tank after treatment by using a combination of sand carbon

and ultrafiltration process through various key equipment such as collection systems filtration

systems and ultrafiltration systems. With this method the Touch Technology Division has

achieved wastewater reuse significantly reducing water costs and environmental impact.Case: High-temperature evaporation zero discharge system of the sheet metal plant

of the Precision Manufacturing Division

In order to achieve environmental protection and efficient utilization of resources the

Sheet Metal Plant of the Precision Manufacturing Division actively upgraded its wastewater

treatment. It introduced low-temperature evaporation equipment to concentrate the hazardous

10 02024 ESG Report of DSBJ

waste in surface treatment tanks which successfully reduced the waste liquid in surface

treatment tanks by over 80% thereby effectively decreasing the amount of hazardous waste to

be treated. It also installed a high-temperature evaporation system at the water treatment station

which greatly reduced environmental pollution and improved the recycling rate of water

resources due to achieving “net zero discharge” for the entire water treatment station.Indicators Unit 2024

Total wastewater 6041113.37

Ton

discharge volume

Chemical oxygen 7548.66

Ton

demand

Ammonia nitrogen 148.81

Ton

emission

4.4.1.2 Exhaust Emission Management

Types of exhaust emissions mainly include volatile organic compounds hydrogen chloride

sulfuric acid mist hydrogen cyanide nitrogen oxides particulate matter etc. generated during the

production process. The Company strictly complies with relevant laws regulations and standards

such as the Law of the People’s Republic of China on the Prevention and Control of Air Pollution.All exhaust emission outlets are designed and installed in accordance with national standards. The

exhaust gases are emitted into the atmosphere through high exhaust pipes after being treated by

high-efficiency air filters. Exhaust emissions at major operating bases are monitored by internal

management personnel and third-party agencies to ensure emission compliance. We continuously

optimize environmental treatment processes and upgrade high-efficiency end treatment devices to

further reduce exhaust emissions on the basis of emission compliance.Case: Construction of an efficient exhaust treatment system at the Dongyue Plant of

the Precision Manufacturing Division

The Dongyue Plant of the Precision Manufacturing Division has developed and

10 12024 ESG Report of DSBJ

implemented efficient treatment plans for different types of exhaust gases. In terms of exhaust

gas treatment in the electrophoresis line targeted treatment processes are used according to the

type of exhaust gas to ensure compliance with discharge standards. Meanwhile the Dongyue

Plant also accurately calculates exhaust gas flow rate and fully considers the needs of exhaust gas

treatment when selecting and designing equipment such as spray towers to ensure the stability of

the treatment effect. In terms of exhaust gas treatment in the welding workshop a cartridge dust

collector is used for treatment. The exhaust gas is divided into three streams based on the layout

of the workstations and introduced into different cartridge dust collectors. After treatment the

gases are collected and discharged through the exhaust chimney. The cartridges used in the

treatment are made of nano flame-retardant filter material so as to ensure system safety while

achieving efficient dust removal.Waste gas treatment device

Indicators Unit 2024

Volatile organic compounds (VOCs) 1050.10

Ton

emissions

20.42

Nitrogen oxides (NOx) emissions Ton

1.90

Sulfur oxides (SOx) emissions Ton

10 22024 ESG Report of DSBJ

8.94

Particulate matter (PM) emissions Ton

4.4.1.3 Waste Emission Management

The waste generated by the Company is divided into two categories: non-hazardous waste and

hazardous waste. Non-hazardous waste mainly includes household garbage waste plastics waste

paper waste textiles etc. while hazardous waste mainly includes sludge waste printed circuit

boards and scraps dry film residue and contaminated waste (filter cores empty barrels ink cans

etc.). The Company strictly complies with relevant laws and regulations such as the Law on the

Prevention and Control of Environmental Pollution by Solid Wastes and the Measures for the

Administration of the Transfer of Hazardous Waste. In accordance with guidelines such as the Waste

Management Benchmark the Hazardous Waste Management Plan and the Benchmarks for

Selection of Contractors for Waste Treatment we have established strict waste treatment processes

and safety operating procedures clearly defined qualification standards for waste contractors and

regularly organize EHS personnel to assess the operation of waste to ensure its harmlessness.Through these initiatives we may minimize the impact of waste on the environment and human

health.The Company has established hazardous waste warehouses equipped with

waterproof and leak-proof measures where hazardous wastes are strictly

classified stored temporarily and managed by designated personnel

Hazardous according to the Standard for Pollution Control on Hazardous Waste Storage

(GB18597-2023). We also submit warehousing applications to the

waste

governments’ electronic systems of hazardous waste management and

regularly entrust agencies with professional treatment qualification to remove

and dispose of hazardous wastes.Non-hazardous wastes in the plants are prioritized for recycling. They are

Non- transferred to designated storage points within the specified time. General

production solid waste is collected and processed by qualified agencies for

hazardous

comprehensive utilization while household garbage is collected uniformly and

waste then removed by the sanitation department on a regular basis under

entrustment. Waste oils are stored in dedicated containers and regularly

10 32024 ESG Report of DSBJ

recycled by qualified agencies under entrustment.Adhering to the principle of “reduction reutilization and harmlessness of solid waste” the

Company promotes the process of solid waste reduction and minimizes the generation of waste

through the optimization of production processes and resource recycling.MFLEX Suzhou was awarded the title of “Waste-Free Factory in Suzhou City”

Multek Industries was enlisted in the “Waste-Free City Cell” in Zhuhai City

MFLEX Suzhou has obtained the highest Platinum-level Certification of the UL2799 Net Zero

Waste to Landfill Program

Case: Implementation of waste data tracking by Yancheng Dongchuang Plant of the

Precision Manufacturing Division

Yancheng Dongchuang Plant of the Precision Manufacturing Division has actively

introduced an advanced management tool - the Waste Data Tracking Record (WTR). Through

precise data recording and analysis this plant comprehensively optimizes the waste disposal

process continuously making progress towards the goal of net zero landfill. Yancheng

Dongchuang Plant accurately inputs WTR data monthly recording related data for each type of

waste such as the monthly disposal amount external reuse amount internal reuse amount and

waste reduction etc. Through in-depth analysis of WTR data it was found that scrap metal

waste (such as aluminum scrap iron scrap etc.) is generated in large quantities. Considering the

existing recycling rate is already high and there is limited room for improvement it is planned

to further improve the recycling efficiency by strengthening cooperation with recyclers.Case: The Advancement of waste management of MFLEX Suzhou PlantAround the environmental goals of “reduction resource utilization and harmlessness ofsolid waste” MFLEX Suzhou Plant has continued to make efforts to reduce waste in a multi-

dimensional way according to the internal management guidelines in the Waste Disposal

10 42024 ESG Report of DSBJ

Management Operation Guidelines. In 2024 MFLEX Suzhou’s plant achieved a 98.26%

comprehensive utilization rate for general industrial solid waste and an 83.56% utilization rate

for hazardous waste ranking among the industry’s highest benchmarks. MFLEX Suzhou was

awarded the title of “Waste-Free Factory in Suzhou City” and certified by the highest Platinum-

level Certification of the UL2799 Net Zero Waste to Landfill Program

* In terms of source reduction MFLEX Suzhou has continuously introduced advanced

equipment over the years. The centrifuge dryer introduced for dehydrating hazardous

waste filter elements has effectively reduced dry film residues and waste filter elements by

approximately 50% equivalent to 700 tons per year. And the sludge dryer newly installed

for low-temperature drying of copper-containing sludge and nickel-containing sludge has

significantly reduced sludge’s moisture content from ~65% to ~35% achieving an annual

sludge reduction of approximately 3000 tons.* In terms of resource recycling cowhide paper and pads used in production are reused

multiple times. Especially by using undamaged cowhide paper from the lamination

process in the copper plating process MFLEX Suzhou reused approximately 600 tons of

cowhide paper annually.* In the waste disposal phase MFLEX Suzhou has strictly controlled the waste disposal and

entrusts a third party that does not dispose of solid waste by landfill methods to dispose of

our waste fundamentally eliminating landfill treatment and successfully achieving zero

waste to landfills.Indicators Unit 2024

Amount of generated non-hazardous 41554.93

Ton

waste

Amount of recycled non-hazardous 38489.08

Ton

waste

Amount of generated hazardous 31851.18

Ton

waste

10 52024 ESG Report of DSBJ

21357.41

Amount of recycled hazardous waste Ton

10512.73

Amount of disposed hazardous waste Ton

4.4.2 Biodiversity Conservation

In strict accordance with national and local laws and regulations on biodiversity conservation

the Company carries out a series of practical initiatives that emphasize the biodiversity conservation

concept throughout all phases of projects including planning design construction and operation to

protect the ecological stability and biodiversity of the operation site. During the project planning

and design phase the Company conducts a comprehensive investigation and assessment of the

surrounding ecological environment under environmental protection requirements fully

understanding the characteristics and distribution of local biodiversity to avoid selecting sites that

may have adverse effects on the environment with an environmental impact assessment report

awarded for the project in accordance with regulations. During the project construction phase the

Company minimizes the impact on local vegetation soil and water by establishing construction

protection measures and restricting the construction areas. During the project operation phase the

Company conducts continuous environmental monitoring and regular collection and analysis of

environmental indicators such as air quality water quality and soil quality to identify and solve

potential problems in a timely manner and actively engage in ecological restoration and protection.Multek launched biodiversity advocacy campaigns on International Biodiversity Day in 2024

10 62024 ESG Report of DSBJ

10 72024 ESG Report of DSBJ

5. Working Together for a Better Future Based on People Oriented

Philosophy

Sustainable Development Goals of the United Nations (SDGs)

5.1 Labor and Human Rights Management

5.1.1 Governance

DSBJ strictly complies with international human rights norms such as the Ten Principles of

the UN Global Compact the Universal Declaration of Human Rights and ILO Declaration on

Fundamental Principles and Rights at Work as well as local laws and regulations in its operating

regions and has established a comprehensive labor and human rights governance system. The ESG

Management Committee regularly reviews major issues related to labor and human rights

management and approves major labor and human rights management plans and targets. The Human

Resources Working Group (composed of the HR department at headquarters and the HR

management departments from various divisions) collaborates with the EHS Working Group

(composed of the EHS departments at headquarters and from various divisions) to jointly promote

the implementation of labor and human rights management topics and monitor and continuously

improve the work progress. The Human Resources Working Group is responsible for ensuring

employee rights protection such as prohibition of child labor and forced labor collective bargaining

anti-discrimination diversity inclusion and compensation and benefits while the EHS Working

Group is responsible for occupational health and safety management working together across levels

and horizontally to create a harmonious and positive workplace ecosystem.

1082024 ESG Report of DSBJ

5.1.2 Strategy and Management Mechanism

DSBJ is committed to respecting the basic rights and interests of every employee and providing

all employees with equal opportunities for work and development. The Company has established a

comprehensive and complete labor and human rights management system. We have clarified the

code of conduct and requirements for employees and taken various measures to prevent potential

human rights risks so as to create a safe reliable harmonious and efficient working environment.

5.1.2.1 Compliance Hiring

The Company regulates the entire process of talent introduction. In the recruitment and hiring

process we implement the principles of open recruitment equal competition and selection of the

best candidates based on moral integrity and professional competence. All applicants who meet the

requirements for the corresponding positions are eligible for interviews without discrimination on

gender education age race family status religion or cultural background. The Company prohibits

child labor and forced labor ensuring compliance and fairness in talent recruitment. We strictly

inspect the recruitment and hiring processes and encourage employees and applicants to report any

violations of company policies or regulations through public channels. All reported violations will

be seriously investigated and dealt with and corrective measures will be taken if necessary. During

the reporting period the Company experienced no major labor disputes or incidents of child labor

or forced labor achieving 100% labor contract signing rate and 100% social insurance coverage for

all employees.

23515

Total number of employees (persons)

Number of newly recruited fresh graduates 126

(persons)

Gender composition

Category Headcount (persons)

14191

Male employees

9324

Female employees

Age composition

10 92024 ESG Report of DSBJ

Category Headcount (persons)

6218

Under 30 years old

16638

30-50 years old

659

51 years old and above

Regional composition

Category Headcount (persons)

Chinese employees (including Hong Kong 23003

Macau and Taiwan)

512

Overseas employees

5.1.2.2 Respecting for Human Rights

DSBJ takes actions consistent with the Responsible Business Alliance (RBA) Code of Conduct

during the operations and promotes various business segments to formulate norms such as the Code

of Business Ethics the Code of Corporate Ethics and the RBA Management Handbook etc. We

always respect and safeguard the legitimate rights and interests of all employees and business action

stakeholders eliminating any form of infringement and violation of human rights so as to ensure

that every employee enjoys a fair democratic and healthy working environment.The Company regularly conducts training related to labor and human rights policies in order

to raise employees’ awareness and understanding of human rights issues. Multek conducts RBA &

COC training for all employees annually with 4104 participants and a completion rate of 93.4% in

2024. The Precision Manufacturing Division added the labor and human rights policy training into

the mandatory courses for new employees training 14160 participants in 2024 with a total of

28320 training hours and a completion rate of 100%.

Multek and Mutto Optronics have obtained the RBA VAP certificate from the Responsible

Business Alliance.

11 02024 ESG Report of DSBJ

Highlighted Management approach Mitigation measures

issues

* Thoroughly verify the authenticity of

Prohibition of Global plants comply with local

applicants’ identities;

child labor regulations in their hiring

* Establish a reporting mechanism;

and protection processes and strictly prohibit

* Comply with RBA requirements for

of minor child labor.proper handling.workers

* Employees are free to conclude and

Forced and The Company establishes

terminate labor contracts at their own

compulsory relevant systems such as the

discretion;

labor Forced Labor Management and

* Recruit adequate staff according to

Control Procedures to strictly

business development and establish a

prohibit forced and compulsory

mechanism for managing and tracking

labor.working hours.* Inform employees in advance of

overtime work and obtain their consent and

regularly analyze and audit working hours

to strengthen early warning mechanisms.* Exclude discriminatory clauses in

Anti- The Company establishes

recruitment advertisements.discrimination internal institutional norms such

* Do not illegally refuse to hire

and anti- as the Anti-Discrimination and

employees based on factors such as gender

harassment Anti-Harassment Policy to

age race and other diverse backgrounds.ensure employees are protected

* Provide reasonable special protections

from illegal discrimination.for vulnerable labor groups.All employees have the right to freely join

Trade union Establish trade unions in

or form trade unions and participate in

and collective accordance with the laws and

collective bargaining; Multek has generated

bargaining regulations of each operating

a collective agreement through collective

11 12024 ESG Report of DSBJ

Highlighted Management approach Mitigation measures

issues

location to create a work negotiation covering 100% of employees.environment that encourages The collective agreement addresses key

free expression. issues closely related to employees such as

wages working hours labor conditions

welfare benefits training and development

and the working environment. The Touch

Technology Division has formulated the

Special Collective Contracts for Wages the

Special Collective Contracts for Special

Protection of Female Employees and the

Special Collective Contracts for Labor

Safety among others.* Regularly inspect and address safety

Health and The Company establishes an

hazards;

safety occupational health and safety

* Promote a safety culture and regularly

management system and

conduct safety and health training and

develops corresponding safety

occupational health checks.operating procedures and

methods to create a safe and

healthy workplace.* Regularly conduct compliance reviews

Wages and The Company establishes

of wage payments.benefits internal systems such as the

Salary Management Measures

legally stipulating salary and

benefits and providing

employees with reasonable

remuneration.

11 22024 ESG Report of DSBJ

5.1.2.3 Employee Communication and Participation

The Company respects employees’ opinions and ideas and is committed to providing smooth

and diversified communication channels and establishing an open and healthy communication

mechanism to ensure that the voices of employees are heard and valued.Employee Representative Assembly: We establish trade unions in accordance with the laws

and regulations and the relevant trade union requirements of each operating location and

regularly hold employee representative assemblies trade union committee communication

meetings and other democratic management meetings. Major matters involving employees'

immediate interests are addressed through trade unions by gathering opinions and suggestions

from employee representatives and deliberating so as to protect the rights and interests of the

employees in an effective manner. Employees have the right to voluntarily join a trade union

and the employee representative assembly to conduct collective bargaining on key issues closely

related to employees such as wages working hours labor conditions welfare benefits training

and development and working environment. During the reporting period the Company's

negotiations on various collective contracts progressed smoothly covering wages special

protection for female employees labor safety and among others. The trade union/collective

bargaining agreements cover 100% of employee of Multek and the Touch Technology Division.Employee communication meetings: By General Manager’s mailbox/Employee

building a bridge for communication between suggestion box: The Company sets up

superiors and subordinates the Company mailboxes and suggestion boxes with

provides employees with opportunities for designated personnel regularly opening them to

direct dialogue between employees and the conduct special investigations and handle and

management to efficiently drive the provide feedback on employee complaints.Company’s optimization and improvement.Online platform & employee hotline: The Employee Service Agency: MFLEX has

Company communicates with employees established an employee service station

through OA system functions online assigning dedicated personnel to connect and

11 32024 ESG Report of DSBJ

feedback platform communication hotline handle employee inquiries and feedback. The

email etc. to ensure that employees can LED Division has set up an employee care

freely express their opinions and ideas. center which handled 65 pieces of employee

feedback in 2024.* Appeal and protection mechanism

The Company has established internal rules and regulations such as the Employee Appeal

Management Procedure clarifying the entire process of handling employee appeals and reports and

responding promptly to issues raised by employees. Employee appeals will be handled and

investigated by a dedicated team composed of the Human Resources Department trade union

representatives etc. The Company encourages employees to file appeals in a timely manner when

facing any unfair treatment or to report violations of human rights and responds with solutions to

the appellant in writing within a specified time frame. The Company ensures that every reasonable

complaint or report is received and independently investigated under the principle of confidentiality

in a timely manner and actively takes the necessary measures to protect the legitimate rights and

interests of bona fide whistleblowers to ensure that they are not subject to any negative repercussions

or retaliation as a result of making a report.Case: Multek improves employee communication and complaint management.Multek has established a comprehensive employee communication complaint and

grievance management mechanism whereby employees can directly appeal and complain to

their department heads or the HR business partners or the general manager of their divisions.They can also appeal and complain to the Multek Joint Trade Union for support and assistance.Upon receipt of an employee’s complaint the responsible person or responsible department at

all levels promptly initiates an investigation and expeditiously renders a decision based on the

investigation findings. This decision will be communicated to the complainant and the general

manager the head of the department and the HR department of the corresponding division in

writing or by e-mail. Should employees find the decision unsatisfactory they retain the right to

escalate the matter to the trade union or higher-level management or departments in order to

11 42024 ESG Report of DSBJ

safeguard their legitimate rights and interests.

5.1.2.4 Occupational Health and Safety

In strict accordance with laws and regulations such as the Safety Production Law of the

People’s Republic of China the Law of the People’s Republic of China on the Prevention and

Control of Occupational Diseases the Fire Protection Law of the People’s Republic of China and

the Regulations on Supervision and Management of Occupational Health in the Workplace as well

as the requirements of the ISO 45001 management system DSBJ has established an environment

health and safety (EHS) management system and formulated multiple management policies and

norms such as the Occupational Health Management System and the Safety Production

Management Procedures which cover all employees contractors and specific suppliers. The

annual health and safety goals are incorporated into the performance assessments of the relevant

responsible personnel to ensure the comprehensive implementation of health and safety

management requirements.Investment in health and safety amounted to RMB 64.9536 million

All major production and operation entities of the Company have passed the ISO 45001

occupational health and safety management system certification

* Construction of a Health and Safety Culture.The Company focuses on building a health and safety culture. We regularly conduct special

training on health and safety based on the work requirements of employees to promote effective

safety protection in their daily work. At the same time the Company actively carries out activities

such as Safety Production Month and safety knowledge competitions to publicize the safety culture

in order to create a good cultural atmosphere where everyone speaks about safety and everyone is

responsible for safety. In 2024 we achieved 100% coverage of health and safety production training.

11 52024 ESG Report of DSBJ

Knowledge competition in the safety Safety training for hazardous

production month construction operations

* Occupational Health Management

Insisting on prioritizing employees’ health the Company regularly assesses occupational

disease hazard risks and formulates and implements occupational disease hazard control measures

based on risk levels to ensure the safety and health of employees’ working environment. According

to the list of occupationally hazardous positions the Company carries out pre-job on-job and off-

job special medical check-ups for relevant employees and establishes health files. During the

reporting period no new confirmed or suspected occupational diseases were found.DSBJ Solutions Inc. (the U.S. branch) is

equipped with an automated external

defibrillator (AED) and ensures that team

members hold certifications in Adult First

Aid/Cardiopulmonary Resuscitation (CPR)

and AED operation.* Chemical Management

The Company formulates the Dangerous Chemical Safety Management System the

Management Measures for Easy-to-Make Drugs and Explosives and the Chemical Management

Procedures in accordance with relevant national laws and regulations industry standards and

11 62024 ESG Report of DSBJ

requirements of relevant parties on dangerous chemicals. We supervise and manage the entire

process covering procurement loading and unloading use production storage transportation and

packaging of dangerous chemicals and regularly organize regular training for relevant personnel on

dangerous chemicals. We also regularly conduct annual chemical leakage emergency response drills

to enhance the ability to respond to chemical leaks. Through these initiatives we maximize the

elimination reduction or control of the impact of hazardous chemicals on the health and safety of

persons.Entire process management of chemicals

All procurement needs must be reported uniformly according to work

requirements and purchases must be made strictly in accordance with the

Procuremen

procurement procedures after approval (highly toxic substances are required to

t

be approved by the project department and the municipal public security

bureau).Acceptance When accepting highly toxic substances for warehousing personnel from the

and procurement department and EHS department must be present to supervise the

warehousin entire process of warehousing.g

Dedicated vehicles are used to transport chemicals to prevent leaks and

splashes. Chemicals are pasted with safety labels after safe handling and storage

Handling

to ensure correct classification. Hazardous chemicals are properly stored under

and storage

different categories and inspected by designated personnel every day for

management.The Company requires units with demands to fill out the chemical requisition

Material

form and apply hazardous chemicals as needed. Hazardous chemicals

issuance and

distributed to the production site are stored in explosion-proof cabinets with

requisition

special locks equipped. In addition the Company keeps detailed records of

11 72024 ESG Report of DSBJ

chemical inventory changes and installs a networked alarm system and infrared

detection system on-site. All these measures can contribute to ensuring the

safety of the requisition process.Appropriate protective equipment should be provided in accordance with the

Emergency MSDS requirements when handling chemicals and effective firefighting

protection equipment should be available in the chemical temporary storage area for

emergency use.Personnel handling chemicals should wear proper personal protective

equipment to ensure compliance with operating procedures. When supplying

materials we use double-layered tubes to prevent leakage and transparent tubes

Usage

for timely inspection and maintenance in case of problems. We install

monitoring systems and other equipment on the production site to detect toxic

and flammable gases.We properly handle various types of chemical waste in accordance with the

Discard Waste Disposal Management Procedure and entrust qualified purchasers for

recycling and disposal of hazardous waste.Yancheng Dongshan conducted Multek conducted exercises for

emergency drills for chemical spillage chemical spillage

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DSBJ PTE. LTD. (the Mexican branch) conducted the training on chemical spill

prevention

* Contractor Safety Management

The Company’s health and safety management covers all activities of contractors in the

Company. We have implemented strict training assessment access and process monitoring for

partners conducting construction in designated zones with detailed measures including signing

safety agreements pre-entry safety education personnel and equipment inspections approval of on-

site work protection and identification and remediation of work hazards.

5.1.3 Risk and Opportunity Management

To effectively implement human rights policies and guidelines the Company refers to

requirements such as the Responsible Business Alliance (RBA) Code of Conduct to identify assess

and manage human rights risks in operations value chains and investment and mergers and

acquisitions. In accordance with risk identification assessment and management procedures the

Company sets up human rights and labor management target indicator programs annually for some

key plants and monitors the progress of these indicators monthly. In order to control risks more

deeply risk assessments are conducted through reviews and audits including regular RBA-based

self-assessments on human rights issues at key plants customer social responsibility checks or RBA

audit certifications to review the completion and achievement of indicators such as the prevention

of forced labor prohibition of child labor health and safety and the protection of freedom of

association and collective bargaining rights. Audit results will be used to identify and address

11 92024 ESG Report of DSBJ

potential human rights risks and issues and continuously improve the human rights management

system. During the reporting period the Company experienced no major incidents of labor and

human rights risks.Human rights due diligence process

Human rights risk Prevention of Mitigation and Supervision and

identification and human rights risks improvement implementation

assessment

Develop human rights Regularly review and Establish feedback

Identify and assess policies codes of develop improvement mechanisms to follow

human rights risks in conduct supplier action plans within a up on the

the value chain codes of conduct etc. specified time frame effectiveness of

according to and strengthen based on the measures and

international human relevant training and assessment results continuously

rights standards implementation. and take mitigation optimize the

laws and and improvement improvement;

regulations and measures for key establish smooth

relevant certification issues. channels for

requirements. complaints and

appeals to detect and

resolve human rights

issues more

effectively.In response to health and safety risks the Company has implemented a dual prevention

mechanism comprising risk assessment and hidden danger investigation and control to effectively

reduce the probability and impact of safety incidents. We encourage key operating entities to

establish institutional norms for identifying evaluating and controlling risks associated with

hazardous sources aligning with the requirements of ISO 45001 and conduct regular hazard

identification and risk assessment activities resulting in the compilation of a safety risk

classification and control list based on assessment findings for comprehensive risk control. We

12 02024 ESG Report of DSBJ

assess the level of hidden safety risks and set up a file in accordance with internal regulations and

systems such as the EHS Inspection and Hidden Danger Investigation and Control System to

actively rectify hidden dangers.

5.1.4 Indicators and Targets

Indicators and Targets Achievement in 2024

No events of No incidents of child labor and Targets achieved

infringement forced labor

of employee Total number of employee Targets achieved

rights and discrimination incidents is 0

interests 100% of employee insurance Targets achieved

coverage

100% handling of employee Targets achieved

complaints and reporting incidents

No major Zero serious safety accidents Targets achieved

employee Zero fire accidents Targets achieved

health and Zero employees who died due to Targets achieved

safety risk work-related injuries The number of employees who died

incidents due to work-related reasons is 0 and

the number of workdays lost due to

work-related reasons is 856 days

Zero major safety incidents Targets achieved

100% coverage of occupational Targets achieved

health examinations

0% incidence rate of occupational Targets achieved

diseases

Injury rate per thousand workers ≤ Targets achieved

1.5 The injury rate per thousand workers

is 1.49

12 12024 ESG Report of DSBJ

5.2 Human Capital Development

5.2.1 Governance

Talent is crucial to the sustainable development of the business. DSBJ continuously optimizes

the human resources management system to ensure its deep integration and precise alignment with

the Company’s overall strategy. The human resources working group which consists of personnel

from the human resources management departments of the Company’s headquarters and various

divisions is responsible for formulating and executing the Company’s human resources strategy

and goals promoting the implementation of human capital development topics monitoring the

progress of the work and making continuous improvements. The Company’s headquarters and all

divisions have developed a series of institutional norms covering comprehensive dimensions such

as employee training talent management career advancement performance management and

compensation incentives which contribute to the optimization of the Company’s talent structure

and the enhancement of organizational competitiveness.

5.2.2 Strategy and Management Mechanism

DSBJ aligns its talent development strategy with corporate strategic objectives and business

growth directions. The Company continuously improves the competency model and the internal and

external talent development system to create a continuous growth support system for employees’

career lifecycle so as to satisfy the Company’s strategy and business development needs for

interdisciplinary and high-quality specialized talents thereby comprehensively supporting the

implementation of the Company’s strategy.

5.2.2.1 Talent Introduction

The Company remains dedicated to enhancing its talent development and management strategy.We conduct regular assessments of organizational needs and talent capabilities in alignment with

the Company’s strategic planning and business development direction in order to plan a forward-

looking talent layout and anticipate the recruitment demands proactively. Furthermore we actively

diversify our talent recruitment channels to ensure accurate matching of recruitment resources.Through these initiatives we have built a high-quality talent pool for the Company’s development

in an all-round and multi-dimensional way.

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The Company builds the talent pool based on needs and requirements. We predict

Forward-

recruitment needs in advance and formulate recruitment plans in line with the

looking

Company’s strategic planning and business development trends to reserve

layout

relevant talents to support the Company’s future stable operation.The Company reviews job competency models to enhance talent profiles and

Professional adopts professional talent assessment tools for comprehensive evaluations and

assessment screenings of talents so as to attract high-quality talent widely under the principle

of fairness and impartiality.The Company actively diversifies recruitment channels such as online

recruitment offline recruitment campus recruitment headhunting internal

referrals internal job competitions internal job transfers etc. and collaborates

with universities to cultivate graduates and interns to jointly cultivate key

professional talents achieving a win-win situation for all parties. The Company

also cooperates with training institutions to establish talent development and

Diversified

training frameworks customizing talent delivery channels according to the

channel

demand for talent.In 2024 different divisions of DSBJ actively carried out campus recruitment

activities carefully preparing and completing campus roadshows at Nanjing

University Chongqing University Dalian University of Technology SoutheastUniversity etc. A total of 698 candidates were interviewed for the “EvergreenProgram” and 91 of them were contracted to join DSBJ.

5.2.2.2 Employee Training

The Company has built a systematic talent training system aimed at all employees around

“Three core initiatives two teams and one learning platform” in order to strengthen the all-round

training of talents. The Company fully integrates internal and external training resources. We set up

a rich and systematic training curriculum according to the different training needs of employees at

12 32024 ESG Report of DSBJall levels providing diverse and scientific training content to create a cultural atmosphere of “allemployees are learning constantly”. The training system covering new employees key employees

and manager personnel at all levels helps employees achieve continuous growth throughout their

careers and continuously improve their professional competitiveness.High-Quality Development (Lecturer Database · Mentor Database · Teaching

Case Repository · Knowledge Management

Center)

Support business victories with focuses Training Management Team Development

on organizations and people to foster

enduring growth for Dongshan.Cadre Management (Passion + Expertise · Talent Development

Consultants · Enabling Business Success)

Professional Talent Management Digital Learning Platform Development

Talent Pipeline Management (Innovative Tools · Modern Methods · Agile

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Mindsets; Employee Experience · Digital

Empowerment · Efficiency Enhancement)

1 Top-Level Plan 2 Teams

3 Core Initiatives 1 Learning Platform

Internal Trainer Team Development

DSBJ Cloud Classroom

The Company has built an exclusive online learning platform based on the cloud classroom

learning platform which provides employees with rich course resources and efficient

convenient and flexible learning services to create an active learning community thereby

enhancing learners’ sense of participation and enthusiasm. The learning platform which covers

a wide range of content including financial management supply chain management research and

IT management workplace effectiveness professional skills etc. has become an important

platform for employees’ daily work learning and self-learning. In 2024 the cloud classroom

course had a total of 401749 learning sessions with a total learning duration of 85835.94 hours.DSBJ Master Teacher Program

To meet the needs of organizational development and talent cultivation the Company has

established an internal trainer mechanism which incorporates professional talents from various

departments into the internal trainer team and conducts training for internal trainers’ teaching

ability such as lesson research workshop to build a team of internal trainers with comprehensive

qualities and strong professional abilities thereby achieving mutual promotion and win-win

results for the Company’s development and individual growth. In 2024 the Company’s internal

trainer training program - DSBJ Master Plan effectively enhanced the training capabilities and

levels of internal trainers through diversified forms of training such as micro-learning online

12 52024 ESG Report of DSBJ

live broadcasting and classroom-based intensive training so as to lay a solid foundation for theCompany’s talent cultivation. For example the training named “Three steps to become a teacher:improvement of lecturing skills” conducted by the Precision Manufacturing Division is aimed at

helping internal trainers understand trainees’ learning characteristics master course interaction

skills and learn classroom management techniques.* New Employee Training

The Company provides targeted training for newly hired employees helping them initially

understand the Company’s development and various policies and systems through the combination

of theory and practice to quickly integrate into the Company’s environment and master job skills.The Company also assigns instructors to guide and follow up on employees’ learning and progress

at work supporting them to continuously grow and improve.Case: The “Evergreen Program” empowerment training project cultivated new

talents in the workplace.In 2024 the Company launched the “Evergreen Program” a comprehensive onboarding

and empowerment training project for fresh graduates which aims to new employees across alldivisions. Following a “Orientation-Integration-Foundation Building-Acceleration-Competency” development pathway this program is structured around four pillars: integration

learning practice and culture. The integration pillar helps fresh graduates quickly adapt to the

corporate environment through exhibition hall tours summit orchestra camping concerts and

closing ceremonies. The learning pillar delivers multi-disciplinary courses including mentor

empowerment workplace communication and AI applications to equip graduates with job-

ready skills. The practice pillar combines role-specific training mentor-guided coaching and

performance feedback to bridge theoretical knowledge with practical execution. And the culture

pillar helps graduates understand corporate culture and establish a sense of belonging via

executive face-to-face sessions tech expert dialogues book-sharing forums and job

performance reviews. Through this multi-threaded training model the “Evergreen Program”

empowerment training project for fresh graduates has effectively enhanced graduates’

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professional competencies and job readiness injecting new vitality into the Company.* Leadership Training

In response to the Company’s development strategy and employees’ career development needs

we have developed a comprehensive hierarchical leadership training plan that encompasses

leadership theory team management decision-making communication skills conflict resolution

and other aspects providing opportunities for employees at different levels to develop leadership

skills and support their continuous learning and growth. The Company’s leadership training

program spans the foresight reserve and enhancement of leadership for senior managers middle

managers grassroots managers and reserve management personnel. Our training initiatives are

designed to assist managers at all levels as well as the next generation of leaders in understanding

organizational strategy enhancing their management capabilities and broadening their horizons.Through these efforts we seek to cultivate leading talents capable of driving the high-quality

development of the Company.Strategy-Driven Talent-First | Effective communication & continuous improvement

Leadership Program Framework

High-Potential Talent Camp New Director Development Camp

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Strategic thinking Organizational activation

Influence Awareness raising

Leadership Business control

New Manager Development Camp Team empowerment

Role awareness & avoiding pitfalls Executive Leadership Camp

Goal setting & planning Strategic vision

Delegation & coaching Well-versed in operations

Performance evaluation & feedback Management excellence

Courage for innovation

Middle and senior [Highlight] The Company’s “Six Rules for Cadres” series

managers: Focusing on of courses

the knowledge and skills

The cultivation and echelon building of talents need to rely on

of middle and senior

cultivating and developing cadres in practice to inspire potential

strategic management

and improve performance. In 2024 the Company launched a series

and leadership the

of courses related to the themes of “Deployment” and “Efficiency”

Company conducts

in the “Six Rules for Cadres” for cadres from all divisions. These

training on strategic

courses involve aspects such as planning and organizing efficient

thinking business

decision-making influence team collaboration management

development planning

innovation and talent development and management aiming at

crisis management

continuously enhancing the leadership capabilities of cadres.team building decision-

12 82024 ESG Report of DSBJ

making and other

[Highlight] DSG’s “Leadership Workshop”

aspects.In 2024 DSG organized the “Leadership Workshop” for key

position personnel. Guided by the Company’s LEADER values

(Six Rules for Cadres) the two-day workshop with focuses on the

core values of “Deployment” and “Education” assists leaders in

enhancing strategic execution capabilities and team guidance

skills. DSG also designed personalized workshops based on the

needs of managers to ensure maximum training effectiveness.Grassroots cadres: The [Highlight] Multek Block Operation Leaders and Reserve

Company designs close- Force Training Camp

to-realistic training

The training camp program is conducted separately for team

content tailored to the

leaders and operation leaders encompassing classroom instruction

actual work of

online learning “knowledge-to-action” review sessions

grassroots leaders

workshops learning presentations and performance evaluations.covering contents of

Through diverse formats the program stimulates participants’

team management

learning enthusiasm and initiative. In 2024 the program engaged

crisis handling goal

44 alternative operation leaders and 18 operation leaders.

setting and execution

employee motivation

etc. to help them better

cope with various

challenges in their daily

work.High-potential/reserve [Highlight] Post-90s High-Potential Training Camp

cadres: Young

To build a high-potential and high-performance young talent

employees are the future

team and strengthen leadership succession planning the LED

hope of DSBJ. The

Division launched the “Post-90s High-Potential Training Camp”

Company cultivates

which was designed to comprehensively enhance the leadership

young talents with

capabilities of post-90s employees and prepare future leaders for

12 92024 ESG Report of DSBJ

leadership potential and the company. In 2024 this project had a total of 40 trainees.innovative ability

[Highlight] Specialized Program for Management Trainee

through professional

Empowerment

leadership development

In 2024 the Precision Manufacturing Division upgraded its

courses.specialized program for management trainee empowerment

aiming to cultivate engineers with deep organizational alignment

and expand the trainee workforce to not less than 100 active

participants by the end of 2026. The training period was extended

from 3 months to 1 year with the addition of business and product

introduction modules in the intensive training phase and the front-

line workshop rotations. In terms of mentorship system

optimization a number of management actions such as duty-based

teaching plan mentor evaluation weekly report monthly

performance communication and probationary performance

presentations etc. have been added to ensure the quality of

mentorship. At the same time the senior management places great

importance on this program. The president and the head of the

operation center both conducted one-on-one interviews with

management trainees to accelerate their growth. In 2024 the

management trainees achieved 100% retention rate within the first

6 months and 100% probation-to-regular conversion rate.

13 02024 ESG Report of DSBJ

* Professional Position Training

The professional position training aims to enhance employees’ knowledge and skills in their

professional fields. The training covers various business areas such as research and development

production quality EHS sales and human resources to ensure that employees master the latest

professional knowledge and technologies and improve core skills and teamwork abilities so as to

better adapt to market changes and meet the development needs of the Company.Case: MFLEX Empowerment Program

In 2024 the MFLEX Empowerment Program for personnel responsible for projects was

successfully completed. This training comprehensively enhances project managers' leadership

project management professional skills communication and coordination abilities and risk

management capabilities through systematic training and practice thereby supporting the

efficient achievement of corporate strategic objectives.Case: Building a Strong Engineering Team to Support the Integration of

Informatization and Industrialization

Under the Company’s direction for the integration of informatization and industrialization

the cultivation of versatile engineers has become a top priority. The Company has established a

comprehensive engineer training system that adopts a training model that combines internal and

external training and promotes targeted training projects across all divisions.

1312024 ESG Report of DSBJ

Objective Problem Analysis/Decision-Making

Cultivate versatile engineers to

accelerate the Group’s transformation

of informatization and

industrialization Demand Insight/Customer Service

Path Special projects

Professional Competency Knowledge documentation

Internal Training: Aligned with

learning roadmaps Learning roadmaps

Professional knowledge for roles Experience distillation

Industry/product expertise Internal mentors + internal trainers

Process/equipment mastery Training & simulation projects

Data analysis/tool proficiency Innovation case evaluations

Quality management Technical breakthrough projects

Informatization and industrialization

Content breakthrough projects

General Competency Diverse Development Methods

External Training: Leveraging

External Experts Project practice + mentorship

Systems Thinking/Global Perspective Classic case sharing

Learning Agility/Innovation

Breakthroughs Knowledge contests

Interpersonal Communication/Task

Collaboration Job rotation

Systems/Platform Support Professional certifications

Evaluation recognition and incentive

mechanisms and engineer conferences Benchmarking visits

Mechanism

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* External Joint Training

The Company actively provides external educational resources for employees introducing

high-quality and professional training resources internally while supporting employees to

participate in external training and learning so as to help employees keep up with the forefront

fields with continuous improvement. In 2024 the Company collaborated with multiple external

organizations to carry out high-quality training programs to provide employees of different types

with the knowledge and resources they need.Case: Deep collaboration between universities and enterprises to cultivate

professional talents

With active promotion of internship programs DSG collaborates with Nanyang

Technological University (NTU) National University of Singapore (NUS) Singapore Institute

of Technology (SIT) and Ngee Ann Polytechnic (NP) to jointly cultivate professional talents in

fields of IT big data artificial intelligence and information security preparing for the future

development. In 2024 DSG trained a total of 17 interns.Case: DSG created multidimensional external joint training projects

In 2024 DSG collaborated with multiple external organizations to provide a series of

training for employees including but not limited to project management training business email

and letter communication skills courses basic training on Personal Data Protection Act (PDPA)

and leadership workshops which offered employees with more high-quality training

opportunities to enhance their personal and professional development.Collaborating with Aventis Learning Group for project management training;

Collaborating with JCI for business email and letter communication skills training and for

productivity enhancement through Co Pilot training;

Collaborating with Republic Polytechnic for the workplace mentorship program training;

Collaborating with Lloyd McGill for basic training on Personal Data Protection Act;

Conducting with NTU for the digital transformation and leadership development program

(Leadership and Management Talent Pillar) training;

Collaborating with Career Development Consulting for leadership workshops;

13 32024 ESG Report of DSBJ

Collaborating with other institutions for soft skills training covering critical thinking

conflict management and more.

5.2.2.3 Employee Development

The Company continuously improves the competency model according to strategic planning

and business development trends and provides employees with diverse career development

opportunities and a broad stage for achievement of common development objectives between

individuals and the Company. Employees have achieved continuous growth throughout their career

lifecycle.* Career Advancement

The Company continuously improves the competency model for various positions around its

strategic goals and deeply integrates the model into performance management recruitment

selection training and development processes to support the optimization of the talent management

system.DSBJ Engineer Model Result Orientation

Empowerment Dimensions Result Drive

Core Elements High-quality Delivery

Learning Innovation Team Collaboration

13 42024 ESG Report of DSBJ

Acute Learning Non-authority Influence

Cross-disciplinary Thinking Principle-based Collaboration

Project Planning Capability

Under the principles of organizational needs prioritization emphasis on both moral character

and performance orderly promotion and promotion and demotion of employees based on their

performance the Company has established internal rules and regulations such as the Personnel

Promotion Management Measures related to career development to continuously improve the career

advancement system. We establish clear dual channels composed of management and professional

career development based on employees’ own situation to realize the orderly and smooth flow of

talents horizontally and vertically through internal competition job rotation etc. so as to provide

employees with fair promotion and development opportunities. We help talents to continuously

advance in the workplace. At the same time the Company regularly conducts talent review projects

to understand high-potential employees and the talent pool of key positions and implements

assessments and promotions based on the talent review outcomes. In 2024 MFLEX the Touch

Technology Division and the Precision Manufacturing Division etc. all carried out talent review

projects.Case: Succession Planning and Talent Management System of DSG

In 2024 DSG continued to improve its succession planning and talent management system

specifically developing a team of internal mentors. After professional training the mentor team

would provide one-on-one career guidance and skill enhancement support to the nominated

outstanding employees. Customized development plans are formulated to help employees better

master core competencies required for their roles while establishing clear directions and

pathways for their future growth and development. This initiative comprehensively elevates the

overall team’s competitiveness.

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* Educational and Qualification Support

As encouraging employees to continuously deepen and improve their professional fields the

Company provides sufficient support and guarantees for continuing education and career

advancement motivating employees to learn continuously to become the most competitive in their

positions. The scope of re-education support covers 100% of formal employees.The Company organizes and implements vocational skill level certifications to

Learning

provide employees with opportunities to enhance their business skills. For

Resources

example the Precision Manufacturing Division organized 28 sheet metal painters

and

to participate in the painter (Level 3) certification.Platforms

The Company supports employees to obtain higher education degrees to promote

Funding

their professional development with front-line supervisors/technicians focusing

and

on upgrading to associate/bachelor degrees and engineering technicians focusing

Rewards

on pursuing dual degrees to upgrade to bachelor's/master's degrees. Outstanding

employees recommended by departments can be offered opportunities to pursue

master’s degrees such as Master of Business Administration (MBA) Master of

Engineering Management (MEM) etc. Each division formulates degree and

vocational skill improvement policies based on its own situation providing cost

reimbursement and one-time allowances as incentives for employees who obtain

degrees qualifications or titles.* DSG implements an education sponsorship policy offering eligible full-time

employees up to 15000 Singapore dollars in funding;

* JDI Electronics establishes the Translation Recognition Criteria to provide

exam fee subsidies and one-time allowance subsidies for employees who meet the

required competency standards.* Multek formulates the Employee Education Assistance Program (EEAP)

which provides education funding for employees who participate in relevant

external training and academic advancement if they meet the stipulated

conditions.

13 62024 ESG Report of DSBJ

The Company adopts a flexible study leave policy allowing employees to utilize

Flexible

their vacation to complete professional certifications or continuing education

study

without affecting work progress thus supporting employees in achieving their

leave

further education goals.

5.2.2.4 Salary Incentives

To attract motivate and retain outstanding talents the Company continuously improves the

employee compensation and incentive system to ensure that all employees receive compensation

commensurate with their work performance.* Diversified Incentives

Based on the “3P+1M” (Position Person Performance and Market) compensation philosophy

the Company formulates scientifically and reasonable compensation and incentive program in

accordance with the DSBJ Assessment and Incentive Distribution Regulations and other related

compensation and incentive institutional norms. The Company has established the Assessment and

Incentive Management Committee which is chaired by the CEO to review key assessment and

incentive systems to ensure that employees receive fair and competitive compensation.The Company’s employee compensation structure consists of fixed salary performance pay

variable bonuses and subsidies in which the variable compensation is closely linked to performance

evaluation results. The variable compensation of senior managers is related to the Company’s

performance with the aim of encouraging them to bear more responsibilities in the Company’s

development. The compensation structure of common employees includes a variable component

that is linked to factors such as company performance organizational performance and individual

performance with the aim of fully mobilizing employees’ enthusiasm for work. Through diverse

incentive mechanisms the Company has formed a comprehensive incentive distribution plan

including instant incentives short-term incentives and long-term incentives which deeply

integrates employees’ interests with the Company’s interests to establish a symbiotic win-win

relationship between employees and the organization.* Material immediate rewards include monthly performance bonuses individual

Instant

13 72024 ESG Report of DSBJ

incentives rewards team rewards etc. For example the LED Division offers various programs

such as seniority allowances departmental stars and attendance awards in addition

to salary compensation.* Non-material immediate incentives include honorary awards recognition

public commendation etc. For example the Precision Manufacturing Division

regularly conducts annual evaluation work covering both individual and team

awards; and the Touch Technology Division creates star employees among

engineers to establish benchmarks for excellent employees.* The performance-driven salary adjustment strategy is adopted according to

Short-term which the salaries of employees with outstanding performance are increased

incentives regularly each year.* Quarterly and annual bonuses are paid based on performance results.* Retention bonuses are provided for key core and high-potential employees

Long-term with outstanding performance;

incentives * Programs such as the employee stock ownership plan are implemented for core

backbone employees.* Performance Evaluation and Appeals

To ensure the fairness impartiality and objectivity of performance evaluation results the

Company promotes each division to establish the annual performance assessment plan that aligns

with its actual circumstances based on the Performance Evaluation Management Measures and

related regulations. A standardized performance evaluation mechanism is established with regular

performance assessments conducted through multi-dimensional and multi-tiered reviews to

comprehensively evaluate employees’ work performance and competencies. For example the

performance evaluation of the Precision Manufacturing Division which covers employee self-

assessment superior rating departmental rating and grading and center-level calibration etc. has

realized objective comprehensive and scientific evaluation of employees. The HR Department

reviews consolidates and provides feedback on evaluation results and drives continuous

improvement of identified problems. For instance Mutto Optronics has embedded performance

improvement triggers into its performance evaluation mechanism placing employees ranked in the

13 82024 ESG Report of DSBJ

lowest performance tier for three consecutive months into a Performance Improvement Plan (PIP)

to assist them in enhancing their skills and improving their work performance.Employees may file appeals to immediate supervisors or the HR department at a higher level

according to the Company’s performance complaint and feedback process if they have any

disagreement or lack clarity on performance evaluation results after receiving the feedback on the

results. When an appeal is submitted by an employee the designated personnel will communicate

with the employee to understand the situation and timely deal with the appeal with feedback

provided so as to ensure procedural effectiveness and timely resolution.

5.2.2.5 Diversity and Opportunity Equality

DSBJ has integrated diversity and inclusion philosophy into team building corporate

operations and cultural development. The Company prioritizes attracting talents with diverse

backgrounds and helping them adapt to the surroundings providing equal opportunities and

expansive development platforms for all employees. By fostering respect inclusivity and open

communication the Company enhances employees’ collaborative efficiency and innovation

capabilities. The Company encourages employees to provide feedback on violations of diversity

and inclusion principles through various channels and collects reasonable suggestions for

continuous optimization and improvement of the Company’s related policies and measures. To

deepen employees' understanding of diversity and cultivate an inclusive workplace the Company

conducts diversity and inclusion training annually based on our diversity policies. In 2024 Multek’s

diversity training reached 93.4% of employees with explicit commitments to building and

maintaining a diverse equitable and inclusive environment that promotes cultural integration and

team cohesion. Additionally the Company regularly organizes diversity activities that involve all

employees encouraging them to actively express their opinions and embrace diverse perspectives

so as to enhance multicultural integration for higher team efficiency.Female employees account for 39.65%

Ethnic minority employees account for 5.56%

Disabled employees account for 0.34%

Overseas employees account for 2.18%

13 92024 ESG Report of DSBJ

The Company upholds principles of equality and fairness across talent development

compensation and benefits career advancement and other aspects. Management actively values and

incorporates diverse perspectives to build a diversified and vibrant workforce team. For female

employees the Company strictly complies with the Law of the People’s Republic of China on the

Protection of Women’s Rights and Interests and the Special Provisions on Labor Protection for

Female Employees ensuring that female employees are provided with equal career development

opportunities and compensations and benefits for which employees should be paid equally for equal

work regardless of their gender and with unbiased training and promotion pathways to encourage

and nurture them to take up key and managerial positions for exploring and expanding more

possibilities for career development. In addition we provide comprehensive workplace rights and

welfare for female employees including but not limited to paid prenatal check-up leave maternity

leave paternity leave breastfeeding leave childcare leave lactation rooms for breastfeeding female

employees regular distribution of benefits for International Women's Day health seminars

addressing women-specific wellness topics and other activities that care for female employees in

order to ensure that female employees can work with peace of mind and comfort. During the

reporting period female employees accounted for 17.8% of the Company’s senior management

and the return rate for childcare leave achieved 100% across the Company’s headquarters DSG

Multek the LED Division the Touch Technology Division and the Precision Manufacturing

Division.The Company actively drives inclusive employment for persons with disabilities by providing

job opportunities configuring accessible facilities and enhancing communication thereby

broadening the career development path for disabled employees. Therefore disabled employees can

win social respect and realize their self-worth through their own efforts.Case: Multek Care Project for Disabled Employees

Multek launched the Care Project for Disabled Employees in 2018. This project is intended

to create opportunities for disabled individuals to integrate into the mainstream workplace; and

to provide them with professional job training to help them quickly adapt to the work

environment and perform their jobs competently. At the same time Multek conducts activities

14 02024 ESG Report of DSBJ

such as “Employee Communication Meetings” and “Outdoor Expansion Activities” annually to

enhance communication and interaction with disabled employees for a better understanding of

their needs. In 2024 Multek employed 46 disabled employees.Outdoor expansion activities Communication meeting for disabled

employees

Case: JDI Electronics’ inclusive employment project

The CCL dustproof clothing ultra-cleaning plant subordinated to JDI Electronics launched

an inclusive employment project under which it established a work team composed of 20

employees with intellectual disabilities. The CCL provides the same wages and benefits as

ordinary employees to these employees with intellectual disabilities and sets up emergency

shower rooms and other special facilities dedicated to them. Meanwhile we allocated 5

instructors to guide and educate them and train their skills from multiple aspects. In addition

the CCL strengthens communication with the families of employees with intellectual

disabilities creates employee growth profiles for them and conducts regular summaries and

discussions of special education to help them grow up in a comprehensive manner and have a

self-reliant life like ordinary people.With the acceleration of the business internationalization process DSBJ is speeding up the

implementation of an international talent training program to cultivate international talents with

effective communication resource mobilization and problem-solving abilities overseas.Case: MFLEX’s cultivation of cross-cultural talents

14 12024 ESG Report of DSBJ

To enhance employees’ capabilities in cross-cultural communication and overseas

compliance operations during the internationalization process MFLEX established a cross-

cultural talent training program and curriculum system in 2024 planning a three-year

progressive training path from 2024 to 2026 to specifically improve employees’ cross-cultural

abilities. With defined core intercultural competencies such as international perspective

business communication international market rule and international leadership MFLEX has

designed a three-tier curriculum system composed of “Basic-Intermediate-Advanced” courses

targeting at three key roles: overseas business executives headquarters liaison personnel and

expatriate managers in order to continuously cultivate more international talents for reserve.This curriculum system features a series of specialized courses including Cross-Cultural

Awareness Cross-Cultural Conflict Management Cross-Cultural Integration Expatriate Stress

and Emotional Management Cross-Cultural Influence and among others.

5.2.2.6 Vibrant Workplace

With great attention to human care for employees the Company advocates for a balance

between life and work and provides comprehensive welfare benefits for all employees. In addition

to statutory basic benefits the Company has provided employees with commercial insurance paid

leave high-temperature subsidies health examination health lectures and consultations holiday

gifts free meals etc. to enhance employees’ sense of belonging and happiness. We pay attention to

special employee groups such as pregnant women disabled individuals and families in difficulties

actively offer them economic assistance welfare benefits and care and warmth to create a warm

and loving corporate atmosphere. We hold diverse employee activities to enrich employees’ leisure

lives helping them relieve work pressure to maintain a positive and upward work and life attitude.The Company places high priority on employees’ mental health continuously expanding the

coverage of its psychological support project under the employee assistance program (EAP) to

provide psychological assistance and support through multiple channels including face-to-face

counseling and telephone consultations. These initiatives enable timely identification prevention

and mitigation of crisis incidents fostering a positive workplace environment. By the end of 2024

the EAP will have covered all employees at Multek Division. In addition the Company actively

14 22024 ESG Report of DSBJ

organizes seminars themed on mental health to continuously improve employees’ emotional

management skills. During the reporting period DSG conducted a series of lunchtime lectures

addressing topics such as stress management building positive relationships and AI awareness

which empowered employees to better manage their physical and mental health.Multek supported employees in need

Multek held an employee talent show

MFLEX established an employee activity MFLEX established a summer care class forcenter and conducted a variety of club and employees’ children and conducted the “Littleteam-building activities Migratory Bird” care activity to address

employees’ summer childcare challenges.The Precision Manufacturing Division held DSG carried out team building activities

birthday parties for employees

14 32024 ESG Report of DSBJ

The Touch Technology Division conducted The LED Division held family day activities

team leader employee activities

* Employee Satisfaction Management

To comprehensively understand employees’ workplace experiences and perceptions the

Company conducts annual employee satisfaction surveys covering aspects such as work

environment career development compensation and benefits and corporate culture. For

dimensions with lower satisfaction we have formulated improvement plans which will serve as

important references for the optimization of organizational management. The Company

continuously monitors and analyzes employees’ satisfaction trends to continuously optimize their

experiences. In 2024 the majority of employees showed favorable attitudes towards organizational

culture development prospects personal management and team management. Based on the

research analysis results the Company has formulated specific improvement measures for the areas

with lower satisfaction including the working environment salary and benefits and logistics

management. For example the Mutto Optronics planned to renovate employee cafeterias and

dormitories in 2025 to systematically enhance dining and accommodation facilities.

5.2.3 Risk and Opportunity Management

With priority in human capital risk management DSBJ systematically identifies assesses

addresses and monitors human capital risks aligned with strategic objectives. The Company

conducts comprehensive analyses of internal and external factors that may harm to human capital

development in order to identify key risk areas including but not limited to talent attrition shortage

of key talents poor performance management inadequate training and development lack of

competitive or equitable compensation and benefits legal compliance issues and organizational

14 42024 ESG Report of DSBJ

culture risks. To address these risks we have developed a talent development strategy aligned with

the Company’s strategic planning and business development direction according to which the key

initiatives include enhancement of compensation competitiveness establishment of a full-cycle

career growth support system and optimization of HR management processes across talent attraction

cultivation utilization and retention. Through these initiatives we can ensure that human capital

development risks remain controllable while stabilizing workforce continuity and improving

organizational performance with the assistance of a risk monitoring mechanism.

5.2.4 Indicators and Targets

Indicators and Targets Achievement in 2024

The Company implements company-wide Targets achieved

employee training programs designed to 100% coverage of employee training

comprehensively strengthen core Employee training participants totaled 472821

competencies and professional capabilities Employee training hours totaled 1118601

of all employees ensuring workforce Average training hours per employee amounted to

development maintains strategic alignment 47.57

with corporate objectives.

5.3 Community Construction

The Company’s sustainable development cannot be separated from the stability and prosperity

of society. The Company actively practices corporate social responsibility participating in various

charity and volunteer activities and prioritizing hiring residents from production and operation sites

to contribute to boosting the local economy while repaying the community through practical actions.In 2024 the Company’s external public welfare donations amounted to RMB 7186600.By the end of 2024 the number of local recruits reached 6739.Case: Illuminating the “Light of Dreams” for adolescents in difficulties

14 52024 ESG Report of DSBJ

Children and adolescents represent the future of a country and the hope of a nation. The

underserved youth as a vulnerable group require heightened societal support. In 2024 the LED

Division donated RMB 800000 to the “Dream Transformation+” care initiative supporting the

aspirations of adolescents in difficulties through practical actions. These funds would enhanceliving and learning environments for adolescents in difficulty paving their “path to dreamrealization” and igniting the “light of hope”.DSG conducted beach cleanup volunteer MFLEX visited a special school to provide

activities in Singapore parks supplies for children

The Touch Technology Division conducted The LED Division encouraged employees

14 62024 ESG Report of DSBJ

volunteer activities in elderly care apartments to participate in park volunteer activities to

assist in the maintenance of public facilities

in the park and surrounding areas

14 72024 ESG Report of DSBJ

Appendix

Appendix I: Key Performance Table

Corporate Governance and Economic Performance

Economic Performance

Indicators Unit 2024

Operating income RMB 0.1 billion 367.70

Net profit attributable to RMB 0.1 billion 10.86

shareholders of the listed

company

Basic earnings per share RMB/share 0.64

Corporate Governance

Indicators Unit 2024

Proportion of female directors % 11.1%

Proportion of independent % 33.3%

directors

Business Ethics and Anti-corruption

Indicators Unit 2024

Proportion of directors % 100%

participating in anti-corruption

training

Proportion of employees % 100%

participating in anti-corruption

training

Average anti-corruption training Hour 3

hours per employee

1482024 ESG Report of DSBJ

Environmental Performance

Environmental Management

Indicators Unit 2024

Environmental protection RMB 0’000 25458.42

investment

Coverage rate of environmental % 100%

training in main operation

locations

14 92024 ESG Report of DSBJ

Energy Use and GHG Emissions 1

Indicators Unit 2024

Gasoline Ton 82.42

Diesel Ton 56.16

Natural gas m3 6914644.40

Purchased electricity kWh 915239602.84

Total energy consumption tce 121882.54

Solar/PV Consumption kWh 39323394.00

Direct GHG emissions (Scope 1) tCO2e 15525.31

Indirect GHG emissions (Scope 2) tCO2e 491117.57

Total GHG emissions (Scope 1 and tCO2e

506642.88

Scope 2)

GHG emission intensity (Scope 1 and tCO2e /RMB10000 of 0.1378

Scope 2) revenue

Note 1: Scope 1 GHG emissions are direct emissions from the Company's consumption of gasoline

diesel and natural gas while Scope 2 GHG emissions are indirect emissions from the electricity

purchased by the Company. The Scope 1 GHG emission factors are calculated based on the

Reporting Guidance on Environmental KPIs published by the National Development and Reform

Commission while the Scope 2 GHG accounting methods are adopted with reference to the

Announcement on the Release of the 2022 Carbon Dioxide Emission Factors for Electricity jointly

issued by the Ministry of Ecology and Environment and the National Bureau of Statistics.Water resource usage

Indicators Unit 2024

Total Water Intake Ton 8754913.91

Total water discharge Ton 6306144.37

Total water consumption Ton 2448769.54

Ton/ RMB 10000 of 0.6660

Water consumption intensity

revenue

15 02024 ESG Report of DSBJ

Water recycling Ton 65293717.32

Recycled water ratio % 88.18%

15 12024 ESG Report of DSBJ

Emissions and Waste

Indicators Unit 2024Compliance rate of “three % 100%wastes” emissions

Total wastewater discharge 6041113.37

Ton

volume

Chemical oxygen demand Ton 7548.66

Ammonia nitrogen emission Ton 148.81

Volatile organic compound

Ton 1050.10

emissions

Nitrogen oxides (NOx)

Ton 20.42

emissions

Sulfur oxides (SOx) emissions Ton 1.90

Particulate matter (PM)

Ton 8.94

emissions

Amount of Non-Hazardous

Ton 41554.93

Waste

Recycled amount of non-

Ton 38489.08

hazardous waste

Amount of generated hazardous

Ton 31851.18

waste

Amount of recycled hazardous

Ton 21357.41

waste

Amount of disposed hazardous

Ton 10512.73

waste

Social Performance

R&D and Innovation

15 22024 ESG Report of DSBJ

Indicators Unit 2024

R&D investment RMB 0.1 billion 12.67

Proportion of R&D investment %

3.45

over revenue %

Cumulative number of valid

Item 954

patents obtained

Cumulative number of software

Item 115

copyrights obtained

Customer Rights and Interests

Indicators Unit 2024

Customer complaint response 100

%

rate

Customer complaint resolution

%100

rate

Supply Chain Management

Indicators Unit 2024

Total Number of Suppliers - 5040

Number of suppliers in China (including Hong Kong 4531

-

Macao and Taiwan)

Number of overseas suppliers - 509

Number of suppliers certified by quality management system - 2747

Number of suppliers certified by the occupational health and - 990

safety management system

Number of suppliers certified by the environmental - 1163

management system

Number of suppliers undergoing responsible mining supply 2149

-

chain due diligence

15 32024 ESG Report of DSBJ

Employee Responsibility

Indicators Unit 2024

Total Employees Person 23515

Proportion of female 17.8

employees in senior %

management

Employee discrimination 0

Event

incidents

Total number of employee Participant 472821

training participants

Total study hours for employee Hour 1118601

training

Employee training coverage % 100

rate

Average annual training hours Hour 47.57

per employee

Occupational Health and Safety

Indicators Unit 2024

Incidence of occupational % 0

diseases

Number of employees who died Person 0

due to work-related injuries

Number of workdays lost due to Day 856

work-related injuries

Social Welfare

15 42024 ESG Report of DSBJ

Indicators Unit 2024

Public Welfare Donation RMB 0’000 718.66

Investment

15 52024 ESG Report of DSBJ

Appendix II: Index of Indicators

Global Sustainability Standards Board; Guidelines for Self-regulation of Listed Companies No.

17 - Sustainable Development Report (Trial) Shenzhen Stock Exchange (SZSE) ;

Disclosure requirements Corresponding section in the Report

Addressing climate change Addressing climate change

Pollutant Emission Pollution prevention and ecosystem protection

Waste treatment Pollution prevention and ecosystem protection

Ecosystem and biodiversity

Pollution prevention and ecosystem protection

conservation

Environmental compliance

Environmental management

management

Energy utilization Addressing Climate Change

Water resource utilization Resource utilization and circular economy

Circular economy Resource utilization and circular economy

Rural revitalization No related work has been carried out in 2024

Social contribution Community construction

Driven by innovation Driven by innovation

Technology ethics Driven by innovation

Collaboration for mutual benefit to build a sustainable

Supply chain security

supply chain

Equal treatment of small and Collaboration for mutual benefit to build a sustainable

medium-sized enterprises supply chain

Product and service safety and

Quality priority / Professional services

quality

Data security and privacy

Information security and privacy management

protection

1562024 ESG Report of DSBJ

Labor and human rights management / Human capital

Employee

development

Due Diligence Materiality analysis

Communication with

Communication with stakeholders

stakeholders

Anti-commercial bribery and

Business ethics and anti-corruption

anti-corruption

Anti-Unfair Competition Business ethics and anti-corruption

Voluntary disclosure of topics Corresponding section in the Report

Collaboration for mutual benefit to build a sustainable

Responsible mining

supply chain

15 72024 ESG Report of DSBJ

GRI Content Index

Usage statement: The Company has prepared this report in accordance with GRI standards for the

reporting period from January 1 2024 to December 31 2024.Report Chapter GRI 1: Foundation 2021

Report Preparation 2-2/2-3

Instructions 2-2/2-3

2-22/2-23

Message from the CEO

2-22/2-23

2-1/2-2/2-6/2-16/201-1

About DSBJ

2-1/2-2/2-6/2-16/201-1

Sustainable Development 2-12/2-13/2-14/2-16/2-22/2-29/3-1/3-2/3-3

Governance 2-12/2-13/2-14/2-16/2-22/2-29/3-1/3-2/3-3

Moving Towards a New Journey of High-Quality Development through Excellent Governance

2-9/2-10/2-11/2-12/2-15/2-17/2-27/207-1/207-2/207-3/405-1

Corporate Governance

2-9/2-10/2-11/2-12/2-15/2-17/2-27/207-1/207-2/207-3/405-1

Business Ethics and Anti- 2-23/2-27/2-28/3-3/205-2/205-3/206-1

corruption 2-23/2-27/2-28/3-3/205-2/205-3/206-1

Digital Intelligence 203-2

Transformation 203-2

Information Security and 2-27/3-3/418-1

Privacy Management 2-27/3-3/418-1

Collaboration for Mutual Benefit to Build a Sustainable Supply Chain

Governance

Strategy and Management 2-27/3-3/204-1/308-1/308-2/407-1/408-1/409-1/414-1/414-2

Mechanism 2-27/3-3/204-1/308-1/308-2/407-1/408-1/409-1/414-1/414-2

Impact Risk and 407-1/408-1/409-1

Opportunity Management 407-1/408-1/409-1

Indicators and Targets 408-1/409-1

1582024 ESG Report of DSBJ

Report Chapter GRI 1: Foundation 2021

408-1/409-1

Continuous Improvement of Product Quality and Competitiveness by Insisting on Quality

2-6/3-3

Driven by Innovation

2-6/3-3

2-27/3-3/416-1/416-2/419-1

Quality Priority

2-27/3-3/416-1/416-2/419-1

2-25/2-27/3-3/417-1/417-2/417-3

Professional Services

2-25/2-27/3-3/417-1/417-2/417-3

Advancing a Clean and Low-Carbon Production System for a Greener Future

Environmental 2-23/2-27

Management 2-23/2-27

Addressing Climate 3-3/201-2/302-1/302-3/302-4/305-1/305-2/305-4/305-5/305-7

Change 3-3/201-2/302-1/302-3/302-4/305-1/305-2/305-4/305-5/305-7

Resource Utilization and 303-1/303-3/303-4/303-5

Circular Economy 303-1/303-3/303-4/303-5

Pollution Prevention and 303-2/304-2/305-6/305-7/306-1/306-2/306-3/306-4/306-5

Ecosystem Protection 303-2/304-2/305-6/305-7/306-1/306-2/306-3/306-4/306-5

Working Together for a Better Future based on People Oriented Philosophy

2-23/2-27/2-30/3-3/401-1/401-2/401-3/403-1/403-2/403-3/403-

Labor and Human Rights 5/403-6/403-7/403-9/403-10/405-1/406-1/407-1/408-1/409-1/412-2

Management 2-23/2-27/2-30/3-3/401-1/401-2/401-3/403-1/403-2/403-3/403-

5/403-6/403-7/403-9/403-10/405-1/406-1/407-1/408-1/409-1/412-2

Human Capital 2-27/3-3/401-2/403-3/403-6/404-1

Development 2-27/3-3/401-2/403-3/403-6/404-1

203-1/203-2

Community Construction

203-1/203-2

159

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