Genbyte
2024
Building 4 Huahong Xintong Industrial Park Intersection of Genyu Road and Nanming Road
Yutang Sub-district Guangming District Shenzhen
0755-86267201
genbyte@genbytech.comAbout This Report 01
Empowering Innovation Through Intelligence
Message from Senior Management 03
3.1 Technological Innovation Leadership 57
2024 Key Performance Highlights 05
3.2 Digital Intelligence Development 65
About Genbyte 07
3.3 Enhancing Product Quality 66
Strengthening ESG Management 15
3.4 Customer Rights Management 71
3.5 Data and Privacy Protection 73
Compliance Leadership Development for a
Sustainable Future
3.6 Building a Responsible Supply Chain 75
1.1 Corporate Governance 23
Building a Better Future Together
1.2 Compliance and Risk Management 25
Preserving Greenery Painting an Ecological
Landscape 4.1 Labor Relations Management
1.3 Enhancing Investor Relations Management 8329
2.1 Addressing Climate Change 35 4.2 Optimizing the Talent pool
1.4 Practicing Business Ethics 8930
2.2 Creating a Green Environment 39 4.3 Safe and Healthy Production 91
2.3 Enhance Pollution Control 43 4.4 Public Welfare Commitment 96
2.4 Comprehensive Resource Utilization 46
2.5 Green Operations Empowerment 52
2.6 Protection of Ecological Diversity 54
Future Outlook 99
Appendix 101
Key Performance Indicators 101
Indicator Index 108
Reader Feedback 110About This Report Standards and References
This report has been prepared with reference to the following standards and
guidelines:
Report Overview
Shenzhen Stock Exchange Guidelines for Listed Companies No. 17 – Sustainability Report (Trial)
This is the first Environmental Social and Governance (ESG) report issued by Genbyte Technology Inc. (hereinafter
referred to as "Genbyte"or "the Company"). The report adheres to the principles of objectivity standardization Shenzhen Stock Exchange Guidelines for Listed Companies No. 3 – Guide to Sustainability Report Preparation
transparency and comprehensiveness. It provides a detailed disclosure of the Company's ESG practices and
performance including those of its subsidiaries. This report has been reviewed and approved by the Company's Board United Nations Sustainable Development Goals (SDGs)
of Directors who warrant that the content is free from any false records misleading statements or material omissions.China Enterprise Reform and Development Society: Guidelines for Corporate Social Responsibility Reporting (CASS-
Report Period ESG 6.0)
The reporting period covers January 1 2024 to December 31 2024 (hereinafter referred to as the "reporting period"). Global Reporting Initiative (GRI) Standards – Referenced Approach
To enhance comparability and forward-looking relevance some content may reference data from previous years or
include future outlooks. Sustainability Accounting Standards Board (SASB) Standards
Reporting Scope
Data Sources
The report covers Genbyte Technology Inc. as the main entity including its wholly-owned and majority-owned
subsidiaries. Unless otherwise stated the scope of this report is consistent with that of the Company's annual report. The information and data referenced in this report are derived from internal documents of Genbyte and relevant
publicly available sources. Unless otherwise specified all currency amounts mentioned in this report are denominated
in RMB. Foreign currency figures have been converted based on the exchange rate as of December 31 2024. In the event
Terminology of any discrepancies with the financial statements the financial statements shall prevail.Report Access
This report is published in electronic format. You may download it from the Shenzhen Stock Exchange website (http://
www.szse.cn) or CNINFO (www.cninfo.com.cn).Feedback
We sincerely welcome your feedback and suggestions regarding this report and the Company’s ESG practices. Please
feel free to contact us through the following channels:
Email: genbyte@genbytech.com
Phone: +86 755-86267201
Address: 1st–6th Floor Building No.4 Huahong Xintong Industrial Park Intersection of Genyu Road and Nanming Road
Yutang Subdistrict Guangming District Shenzhen China
01 02Message from the Vice Chairman
Dear shareholders partners and friends from all walks of life Ensuring Sound Operations Through
The year 2024 marks a significant milestone for Genbyte as we celebrate our 25th anniversary. From our Transparency and Efficiency
humble beginnings in Luohu to the near completion of the “Zhenwei Industrial Park” in Guangming
District from a two-person startup team to a workforce of over 2000 innovators we have always A t G e n b y t e w e r e m a i n st ea d fa st i n o u r
upheld our mission of “revitalizing industry and empowering the nation through technology.” Guided commitment to steady progress and legal
by innovation as our oar and responsibility as our sail we’ve navigated the waves of technological compliance. We have built and continuously
transformation and sustainable development with perseverance and purpose. improved our governance structure and internal
Today on behalf of the Board of Directors I am honored to present Genbyte Sustainability Report. We control systems in strict accordance with the
extend our heartfelt thanks to all those who have supported our journey and are pleased to share our law. Clear boundaries are maintained between
achievements and practices in ESG. the Company and its controlling shareholders Building an ESG Ecosystem Together
ensuring a high degree of independence. We
operate shareholders' meetings in a standardized In this era of both opportunity and challenge
Driving Sustainable Development with Green Creating Social Value Through Employee and orderly manner safeguarding shareholder we hold firmly to our belief in " co-creating
Technology Growth rights and sharing the fruits of development with the ESG ecosystem through responsibility and
Genbyte embraces a deeply rooted green We firmly believe that employee development all stakeholders. In 2024 the Company plans innovation." Innovation remains our powerful
philosophy advancing a dual-engine strategy and social responsibility go hand in hand. Our to distribute a cash dividend of RMB 4.5 (tax engine—we constantly push beyond technical
of " smart controllers + new energy" to actively aim is to build a sustainable ecosystem where included) per 10 shares and grant 3 bonus shares boundaries to deliver better products and
support the global dual-carbon goals. In 2024 our individuals grow with the enterprise and value (tax included) for every 10 shares held. services that meet evolving market demands.company recorded RMB 1.401 billion in revenue is created jointly with society. Through a " dual- We place great importance on investor relations Through the seamless integration of responsibility
with RMB 55.44 million from our new energy track career path + targeted training + long-term offering diverse communication channels to and innovation we are committed to building
business—an increase of 140.78% year-on-year. incentives" system we unlock talent potential maintain transparency and trust. Both our Board a sustainable ESG ecosystem working hand-in-
By deepening the integration of photovoltaic and provide continuous opportunities for of Directors and Board of Supervisors operate hand with stakeholders across society to shape a
energy storage and smart control technologies advancement. We care about employee well- in full compliance with laws and regulations better future.we've accelerated iterations in green tech being—offering free meals accommodation exercising their respective duties responsibly. We The road ahead may be long but every step
contributing more efficient solutions to the global transportation and enriching cultural and uphold strict information disclosure practices brings us closer. With persistence the future
low-carbon transition. recreational activities—nurturing a workplace manage insider information prudently and holds great promise. ESG marks our starting point
From our early breakthroughs in variable that is warm and inclusive. maintain a robust internal audit system to toward becoming a century-old enterprise. Let us
frequency technology in the home appliance At the heart of our culture lies the belief that continuously elevate our governance capabilities move forward together—guided by responsibility
sector to our strategic expansion into new "Make hay while the sun shines." We pursue and support stable business operations. With and driven by innovation—to write a future that is
energy Genbyte has consistently responded to excellence and innovation foster a humanistic a diversified Board of Directors our decision- more resilient and sustainable.the demands of the times through technological and compassionate spirit and promote down- making process is both scientific and rational.advancement. With our " smart manufacturing to-earth accountability. By aligning individual Looking ahead we will continue optimizing our
+ green transformation" approach we have and organizational progress and embedding governance structure to ensure long-term stability
redefined our production model—introducing goodness into our business practices we are and steady progress in an increasingly complex
automation optimizing energy efficiency and building a resilient cultural foundation for market environment.establishing a digital green supply chain to sustainable development.enhance upstream control. This has enabled Tang Juan
a resource-efficient management system that Vice President & General Manager
spans R&D production and the entire supply Genbyte Technology Inc.chain.
03 04Key ESG Performance Indicators
05 06About Genbyte General Meeting of Shareholders
Company Profile
Established in 1999 and headquartered in Guangming As we witness the rapid evolution of the intelligent
Audit Committee
District Shenzhen China Genbyte Technology control revolution built upon the foundation of smart
was listed on the main board of the Shenzhen controllers the industrial ecosystem is being reshaped— Board of Directors Board of Supervisors
Stock Exchange in 2020. We specialize in delivering unlocking new opportunities in fields like new energy Strategy Committee
comprehensive intell igent control solutions— vehicles and artificial intelligence. Looking ahead we
integrating hardware software and system control— will continue to pursue a technology-driven strategy co- Nomination
Committee
for renowned enterprises worldwide. With a strong creating a connected intelligent future with our partners
foundation in technological innovation high-end across the value chain and making life smarter and
Remuneration and General Manager
manufacturing and quality assurance our products and Board Secretarybetter. Appraisal Committee
services span a wide range of sectors including power
tools major appliances innovative small household
appliances automotive electronics cleaning robots
medical electronics and new energy.With strong advantages in technological innovation
high-end smart manufacturing quality assurance and
supply chain management Genbyte Smart has become
a trusted partner for renowned brands including
Dometic Shark Ninja TTI Dreame Homa Panasonic
and China Southern Power Grid.Guided by the philosophy of "Green Technology Smart
Living" the Company has always placed technological
innovation at the core of its development strategy. We
continuously increase R&D investment and strengthen
innovation capabilities with many of our technologies
now leading the industry.Visual of organizational structure
Today the Company stands as a pioneer in frequency
conversion control and a driving force in developing
intelligent control solutions across smart home
appliances power tools and new energy sectors.We have been recognized as a National High-Tech
Enterprise a Guangdong Provincial Engineering
Technology Research Center one of Shenzhen's Top
100 Innovative SMEs a Top 500 Enterprise in Shenzhen
and a recipient of the Shenzhen Enterprise Innovation
Record Award.
0708
Securities Affairs Department
Manufacturing Center
Supply Chain Center
Audit Department
R&D Center
General Manager's Office
Infrastructure Department
Marketing Department
HR and Administration Center
Finance Department
Vietnam OfficeDevelopment History
2007 2018 2022 Technological Breakthrough Headquarters Relocation Acquisition of Land Use Rights
The company achieved a significant breakthrough in vector to Guangming District The company won a bid for industrial land and
frequency control technology transitioning products from built the Zhenwei Industrial Park boosting overall
traditional fixed frequency to efficient variable frequency Expanded production and R&D capacity by competitiveness.greatly enhancing market competitiveness. relocating the company’s headquarters
to Guangming District Shenzhen creating 2020
space for future growth in manufacturing Listed on the Shenzhen Stock
1999 output. Exchange 2024
Company Founded 2015 In December the company successfully Benchmark for Independent Innovation
Genbyte was founded in July with its registered Exploration of Emerging Markets listed on the Shenzhen Stock Exchange’s The company was honored as a benchmark for independent
office located in Luohu District Shenzhen. In SME Board (stock code: 003028). Funds innovation leading the development of new productive forces
its early stages the company focused on the Expanded into sectors such as power tools raised were used for expanding smart through technological innovation.research development and manufacturing of and medical electronics while simultaneously control component production capacity
smart controllers for refrigerators becoming one advancing the development of an intelligent building R&D centers and replenishing
of the earliest domestic enterprises to enter this manufacturing system. working capital.specialized field.
20102019
Diversification of Business Establishment of Hong 2024 Kong Subsidiary Charity and Social Responsibility
Leveraging its technological expertise in home
Genbyte (Hong Kong) was set up to
appliances and automotive electronics the company The company donated to the Yutang Chamber of
strengthen international business
entered the innovative appl iance market and Commerce’s charitable relief fund.operations and promote product
accelerated its business expansion.exports to markets in Europe
America and Southeast Asia. 2025
2005 2021 Accelerated Global Expansion Planned Completion of Industrial Park Expansion into Automotive Electronics 2017 Construction
The company established a subsidiary in Vietnam
As the home appliance control business matured Shareholding Reform and IPO Preparation expanding its overseas production base to reduce The Zhenwei Industrial Park is planned to complete its
the company expanded into the automotive Initiated the transition to a joint-stock company and commenced costs and better align with international customer construction and inspection significantly increasing the
electronics sector laying the foundation for preparations for an IPO. In the same year implemented an needs. Additionally the company entered the new production capacity of core products such as smart controllers
future diversification. employee stock ownership plan to optimize the equity structure. energy sector creating a second growth engine. and energy storage systems supporting the company’s
strategy in new energy and intelligence.
09 10Corporate Culture
Product Applications
Core Philosophy Corporate Vision In-vehicle inverter In-vehicle gas refrigerator
Representing through research innovating To become a global leader in providing Automotive Electronics In-vehicle air purifier controller controller
with passion simplicity and pragmatism intelligent control integrated solutions. In-vehicle variable frequency air In-vehicle hot and cold
efficiency and rigor. conditioning controller cup controller
Generator Controller Screwdriver Controller
Service Philosophy Development Mission Power Tools Leaf Blower Controller Lawn Mower Controller
Innovative design meticulous Revitalize industries empower the Drill Controller ...manufacturing fast delivery quality nation with technology enhance life
service. through intelligence and empower the
future.Core Values Robots and Smart
Cleaning Robot Controller Underwater robot controller
Innovation Products Lawn mower robot controller ...Innovation: Committed to technological innovation continuously exploring new technologies and processes to maintain a leading
position in the intelligent control field.Struggle: Embracing challenges with courage persevering through difficulties and driving the company forward with a spirit of
hard work and dedication. Refrigerator Controller Food Processor Controller
Collaboration: Valuing teamwork encouraging cross-department and cross-field collaboration to achieve the company’s goals
together. Electrolyte-Free Drive Controller Air Fryer Controller
Win-Win: Building mutually beneficial relationships with customers suppliers employees and society at large to achieve collective Smart Appliances Compressor Drive Tea Brewer Controller
growth and development. Hair Dryer and Heater Controller Water Dispenser Controller
Coffee Maker Controller ...Industry and Business Layout New Energy Storage and Micro Inverter Portable Energy Storage
Inverters Home Energy Storage Smart Electrical Cabinet...Domestic Market：
Genbyte holds a significant position in the domestic market establishing
long-term stable partnerships with numerous well-known enterprises. Ongoing Expansion Optical Module Reader IoT Development Tools
The company has earned high praise from customers due to its exceptional New Products Temperature Probe Humanoid Robot Controller
product quality and superior service. ...Business
Layout Overseas Market：
In recent years Genbyte has actively expanded its overseas market and
increased its efforts to go global successfully entering the European
American and Southeast Asian markets. The company has increased its
investment in the Vietnamese subsidiary through Genbyte (Hong Kong)
implementing a mid-to-long-term international development strategy to
enhance its competitiveness in overseas markets.
11 12Industry and Business Layout Annual Honors
Genbyte upholds the business philosophy of "Green Technology Smart Living" and is committed to becoming a global leader in
the field of intelligent control through continuous technological innovation and market expansion. The company adheres to its
core values of "Innovation Struggle Collaboration and Win-Win" and has developed a series of scientific business strategies and
medium- to long-term plans laying a solid foundation for the company's long-term development.Global Strategic Deployment
Accelerate international expansion strengthen localization strategies and
leverage digital technologies and innovation to enhance global competitiveness.Technological Innovation Strategy Market Expansion Strategy
Increase investment in research and development Actively expand both domestic and international
establish a scientific and comprehensive R&D system markets establish strategic partnerships with well-
master core technologies and enhance product known enterprises globally and increase market
competitiveness. share.Business
Quality Assurance Strategy Strategy Talent Development Strategy
Develop a robust quality control system to ensure high Place a strong emphasis on talent cultivation and
product quality earning customer trust and positive recruitment build a high-quality talent pool and 2024 Shenzhen Top 500 Enterprises 2024 Top 100 Enterprises in Operational "Level 3 Intelligent Manufacturing
feedback. provide strong support for the company’s long-term Shenzhen Enterprise Confederation & Performance (Shenzhen Top 500) Capability Maturity" Certification
development. Shenzhen Entrepreneurs Association Shenzhen Enterprise Confederation & BRICS Future Network Research
Shenzhen Entrepreneurs Association Institute (Shenzhen China)
Over the next three years Genbyte will continue to increase R&D investment to tackle
key technological challenges with a focus on enhancing product intelligence and energy
Technolo- efficiency. At the same time the company will strengthen cooperation with leading domestic
gical R&D
and international enterprises and top universities to jointly advance the development of
intelligent control technologies.In the next five years the company aims to significantly grow its market share both at home
Market and abroad with breakthroughs in emerging sectors such as new energy vehicles smart
Expansion appliances and robotics. Efforts will also be made to build a stronger brand presence and
improve overall brand recognition and reputation.
23rd (2024) Shenzhen Enterprise Innovation Record
Shenzhen Enterprise Innovation Record Evaluation Committee & Organizing Committee
Genbyte will accelerate its smart manufacturing strategy by deeply integrating IT with
Smart intelligent manufacturing technologies to realize automated production data-driven
Manufactur- management and high-quality services. A global manufacturing footprint will be established
ing
to enable localized production and fast response to market demands.The company will intensify its efforts in talent cultivation and recruitment building a
Talent comprehensive and scientific talent development system. At the same time Genbyte will
Develop emphasize career planning and improved welfare for employees inspiring motivation and
ment creativity across the organization.Genbyte is committed to actively fulfilling its social responsibilities by participating in public
Social welfare and community programs. Through technical training and support for charitable
Benchmark Enterprise in Independent Charitable and Caring Enterprise
Responsibi- initiatives the company seeks to foster more talent and contribute to a harmonious and Innovation Federation of Industry and Commerce Yutang
lity inclusive society. Shenzhen Enterprise Innovation Record Subdistrict Guangming District Shenzhen
Evaluation Committee & Organizing Committee
1314
Medium- to Long-Term PlanningStrengthening ESG Management To effectively advance its ESG strategy and achieve sustainable development goals Genbyte has established and continuously improved its ESG management framework. The company has clearly defined responsibilities at all levels and embedded the
concepts of ESG and sustainable development into its management and decision-making processes ensuring that ESG principles
are integrated into every aspect of its operations.ESG Mission and Vision
ESG Management Structure and Functions
Genbyte has established a clear mission and vision for sustainable development integrating ESG principles into its daily operations
and management. The Company is committed to working alongside its clients to promote environmental protection and energy Makes decisions on significant matters related to the company's
efficiency advancing the application of green and low-carbon technologies while driving high-quality economic growth and Decision- Board of sustainable development.Making Body Directors
demonstrating strong social responsibility. Looking ahead Genbyte will continue to collaborate closely with stakeholders to deliver Reviews the Company's annual sustainability report.smarter greener products and contribute meaningfully to environmental preservation and social progress.Researches and drafts the Company's sustainable development
Mission Vision strategies and policies.Research and General Conducts research on ESG and provides decision-making consultation
Guidance Body Management Office and advice.Genbyte upholds the core value of "Green Technology Smart Living" and The Company aims to become Organizes or coordinates the supervision inspection evaluation and
is committed to driving sustainable social environmental and economic a global leader in sustainable progress tracking of policies management performance and goals
development through innovative technologies and intelligent solutions. The d e ve l o p m e n t i n t h e f i e l d of Responsible for daily communication and coordination of sustainable
company focuses on green technology to empower global clients in achieving intelligent technology driving development tasks at all levels.energy efficiency resource recycling and low-carbon transformation the industry's transformation Sustainable
Management Development Organizes and supervises the implementation of sustainable
contributing to the creation of a future where humans and nature coexist to wa rd a g re e n s m a r t a n d Level Leadership development initiatives.harmoniously. l o w - c a r b o n f u t u r e t h r o u g h Team Collaborates with various business departments to coordinate and
In terms of environmental responsibility the Company focuses on renewable technological innovation and drive the implementation of sustainable development initiatives.energy and energy efficiency developing photovoltaic inverters energy responsible corporate practices
storage systems and high-efficiency smart controllers to help achieve providing strong support for the Sustainable Responsible for carrying out and implementing the Company's
global carbon neutrality goals. For social responsibility it ensures employee achievement of global sustainable Development Task sustainable development strategies in line with the overall plan.rights provides fair working conditions and gives back to the community development goals. Execution Level ForceLeadership Implements sustainable development tasks and reports execution
through public welfare initiatives. In corporate governance the company TeamOffice progress to the Sustainable Development Leadership Team.has established transparent and compliant decision-making processes
strengthened ethical management of the supply chain and ensures that all
business activities comply with international ESG standards.ESG Governance System
In 2024 Genbyte launched a specialized ESG training program covering topics such as policy and theory business ethics privacy Genbyte continues to deepen its sustainable development management by
protection the RBA Code of Conduct and human rights issues including anti-discrimination. The program also included sessions establishing the "Sustainable Development (ESG) Management System"
on "Corporate Disclosure and Governance Optimization Strategies under Emerging ESG Trends" to strengthen both theoretical which provides scientific guidance for sustainability efforts at all levels of the
understanding and practical skills. Meanwhile the company established a continuous improvement mechanism for the training Company. To enhance and improve the Company's RBA social responsibility
program—refining course design based on feedback regularly updating the industry case library and forming an ESG reporting management system Genbyte has developed the "RBA Social Responsibility
team to promote the practical application of outcomes—thereby systematically enhancing ESG management effectiveness. Management Handbook" in line with the "Responsible Business Alliance
(RBA) Code of Conduct" and tailored to the Company's specific situation. This
handbook integrates RBA's social responsibility environmental health and
trainning safety policies into the Company's operations using the CAPR standard for corrective actions to continually improve the Company's social responsibility
management performance. The Company drives its sustainable development
On December 25 2024 the company conducted a specialized with a robust ESG management system. During the reporting period the
ESG training session focused on three key modules: ESG rating Company successfully passed the RBA VAP audit.methodologies interpretation of domestic and international
ESG policies and practical ESG report writing. By integrating
case studies with hands-on exercises the training deepened
employees' understanding of ESG concepts. As a result the
team's practical ESG capabilities were significantly enhanced
providing strong support for advancing the Company's
sustainability goals.
15 16Sustainable Development Goals and Actions Corresponding
Dimen- Goal UN Sustainable Strategy and Action Plan
sion Development Goals
Genbyte actively responds to the United Nations' Sustainable Development Goals (SDGs) by formulating a Strategic Plan for (SDGs)
Sustainable Development. The company has established specific sustainability targets and integrated ESG principles deeply into
its daily operations. Through concrete actions it is committed to advancing the concept of sustainability and contributing to the Employee Care and Career Development:
achievement of the UN SDGs.Offer competitive compensation benefits and health
coverage with a focus on employees' physical and mental
well-being.Corresponding Establish diverse career development pathways providing
UN Sustainable employees with skill training and promotion opportunities.Dimen- Goal Strategy and Action Plan
sion Development Goals
(SDGs) Diversity and Inclusion:
The company Promote gender diversity in management increasing the
positions Green Product Innovation: representation of women in leadership positions.technological Integrate eco-design principles during the product design phase Establish anti-discrimination and anti-harassment policies innovation as its prioritizing the use of environmentally friendly materials and energy- Reduce the to foster a fair and inclusive work environment.core driving force
focusing on the saving technologies.environmental impact
efficient and energy- Continuously develop high-efficiency energy-saving smart controller throughout the
saving R&D of products while actively expanding inverter and energy storage offerings to
Community Engagement and Public Welfare:
Social company's operations
smart controllers promote the adoption of clean energy helping customers reduce energy and product lifecycle Implement community support programs with a focus on
inverters and energy consumption and carbon emissions. Establish a product lifecycle assessment system to comprehensively driving the green
environmental protection and clean energy promotion.storage systems. By Encourage employees to participate in volunteer services
deeply integrating evaluate the environmental impact of products from production to
transformation. actively giving back to society.green technologies disposal.it empowers
the low-carbon Supply Chain Social Responsibility:
transformation of D e v e l o p a s u p p l i e r c o d e o f c o n d u c t o u t l i n i n g
its products. A green environmental labor r ights and business ethics
manufacturing Clean Production and Energy Management: requirements.system has been Optimize production processes and promote smart manufacturing Conduct regular audits and training for suppliers to ensure
established in strict technologies to reduce resource waste and pollution emissions. compliance with sustainability standards.accordance with
intelligent green Gradually introduce renewable energy at production facilities to Prioritize partnerships with socially responsible suppliers to
manufacturing reduce reliance on traditional energy sources. promote the sustainable development of the supply chain.standards to reduce Implement an energy management system conduct regular energy
the environmental audits identify energy-saving potential and continuously improve. Corporate Governance Optimization:
footprint across
Environ- operations and Improve the board structure by increasing the proportion
ment product life cycles of independent directors and female directors enhancing
while smart the independence and scientific nature of decision-
manufacturing Circular Economy and Waste Management: making.upgrades enhance
resource efficiency. Establish a comprehensive waste classification and recycling Optimize the
In collaboration system to promote the resource utilization of production waste. company’s Risk Management and Compliance:
with upstream Collaborate with partners to develop product recycling programs governance structure
and downstream Establish a comprehensive ESG risk management system
partners the encouraging product remanufacturing and material recycling. to enhance decision- to identify potential risks in the environmental social and
company promotes making transparency governance areas.green supply chain Gover- and accountability. Conduct regular compliance training to ensure the
management nance Establish a robust co m pa n y ' s o p e rat i o n s a l i g n w i t h d o m e st i c a n d
requiring suppliers to
provide products that Carbon Neutrality Pathway: ESG risk management international laws regulations and industry standards.meet international system to ensure Develop a carbon neutrality roadmap outlining emission reduction
environmental compliance and
standards such as targets and implementation pathways.Transparency and Information Disclosure:
sustainability in
RoHS and REACH. Achieve operational carbon neutrality gradually through company operations. Regularly publish sustainability reports to disclose the
With these efforts technological innovation and carbon offsetting. company’s performance and progress in environmental
the company is Actively participate in the carbon trading market and explore the social and governance areas.committed to application of carbon financial tools. Adopt internationally recognized reporting standards to
becoming a global ensure transparency and comparability of information.leader in smart Maintain communication with stakeholders through the
control and clean company website and social media platforms addressing
energy solutions. public concerns.
17 18Stakeholder Communication: The material issues are analyzed based on two dimensions: impact significance and financial importance.
After considering relevant internal and external feedback the company confirms the material issues and
Genbyte is committed to building strong collaborative relationships with stakeholders valuing their diverse interests. The Confirmation develops a materiality matrix.company identifies and communicates with stakeholders based on industry characteristics and business requirements
establishing a transparent and effective communication mechanism. This ensures timely responses and resolution of key concerns
and demands from all stakeholders.Stakeholder Categories Demands and Expectations Communication and Response high
Government and Compliance with laws Strengthen compliance management
Medium Important I Issue Highly Important Issues
Regulatory Authorities tax payment actively pay taxes
17 Product Quality and Safety
1917
innovation development focus on technological innovation 18 Technological Research
20 1 18 Development and Innovation
22 21 19 Employee Health and Asset Safety
Investors and Steady and sustainable operations Regular disclosure of
shareholder rights protection announcements cash dividend 8 20 Data Security and Customer Privacy Shareholders 23
enhanced risk management policy strengthen risk control
910
7 Protection
24 11 21 Talent Development and Training
3
Compensation and benefits Improve compensation system 2 22 Customer Rights Protection
Employees rights protection protect employee rights 12
4
23 Supply Chain Management
health and safety conduct health check-ups 25 13 14 15 24 Employee Rights Protection
career development ensure smooth promotion channels 25 Community Engagement and Social
26
Honest cooperation Fulfill contracts
5 Welfare 16
Suppliers and Partners business ethics conduct clean procurement
26 Fair Treatment of Small and Medium
27
industry development business communication and Enterprises
collaboration 628 27 Ethics in Technology
Customer service Protect customer rights 28 Rural RevitalizationGenerally Important Issue
Customers product quality increase investment in R&D
after-sales service handle customer feedback Importance to the Company's Finances high
Community development Volunteer activities
Media and Public charitable activities charitable donations
information disclosure media interviews 1 Compliance and Risk Control 8 Energy Management 14 Circular Economy
2 ESG Governance 9 Water Resource Utilization 15 Climate Change Mitigation
3 Protection of Shareholder Rights 10 Waste Management 16 Ecological Protection
4 Business Ethics 11 Environmental Compliance
Identification of Key Issues 5 Stakeholder Communication Management
6 Due Diligence 12 Pollutant Emissions
Genbyte has thoroughly studied the United Nations Sustainable Development Goals (SDGs) domestic and international industry 7 Corporate Governance 13 Green Manufacturing
policies and business guidelines issued by stock exchanges. By considering the key areas of concern and expectations of
stakeholders the company identified 28 ESG issues for 2024. These issues were evaluated and ranked based on two dimensions:
their importance to economic social and environmental impacts and their financial significance to the company resulting in
the creation of a materiality matrix for substantive issues.Explanation of Topics of both financial and Topics with impact Topics of general
Key Issues Identification Process materiality impact materiality materiality only materiality
The company references the United Nations Sustainable Development Goals (SDGs) ESG-related Product quality and safety Employee health and workplace safety compliance and Stakeholder
standards national macro policies and industry trends. By aligning with the latest policy requirements and technological research risk control talent development corporate governance communication due
benchmarking against industry peers' material issues the company identifies material ESG issues relevant and innovation supply employee rights protection customer rights protection diligence fair treatment of
Identification to its operations. chain management business ethics circular economy shareholder rights small and medium-sized ESG topics
environmental compliance protection data security and customer privacy enterprises technology
The company conducted an opinion survey using online questionnaires gathering 349 questionnaires from management and waste management energy management pollutant ethics rural revitalization
internal and external stakeholders. Based on the survey results a systematic analysis of material issues addressing climate change. emissions green manufacturing ESG governance and ecological protection.was performed incorporating expert opinions to assess the degree of internal and external impact of these water resource utilization community engagement and
Assessment issues. social welfare.
1920
Importance to the Economy Society and Environmental ImpactsCompliance Leadership
Empowering Sustainable Development
23 Corporate Governance
25 Compliance and Risk Management
29 Enhancing Investor Relations Management
30 Practicing Business Ethics
21 22Corporate Governance During the reporting period
Genbyte strictly adheres to laws and regulations such as the "Company Law of the People's Republic of China" and the "Securities
Law of the People's Republic of China" continuously improving its corporate governance structure. The company has built an The Company held board During which proposals were The independent directors' Reviewing and approving
reviewed and approved special committee held
efficient and clear governance framework with well-defined roles and responsibilities at all levels. Through reasonable distribution meetings proposalmeeting
and checks and balances of responsibilities the company ensures the scientific and fair nature of its decision-making. During the
reporting period the company revised its "Articles of Association" and continued to enhance its governance system.Corporate governance structure The Strategy Committee The compensation and The audit committee held In total the committees
held meetings evaluation committee held meetings reviewed 30 proposals
meetings
General Meeting of
Shareholders
Audit Committee
Independence and Diversity
Strategy Committee
Board of Directors Board of Supervisors The Board of Directors adheres to a sustainable development strategy continuously improving board diversity and independence.Nomination
Committee The Company has established the "Independent Director Work System" and the "Independent Director Special Meeting System."
Independent directors do not hold any position other than that of a director at the Company and have no direct or indirect interests
Remuneration and with the Company its major shareholders or its actual controllers. They are able to diligently perform their duties and play a role
Appraisal Committee in decision-making oversight checks and balances and providing professional advice within the board ensuring fairness and
General Manager Board Secretary transparency in Company decisions and protecting the interests of the Company and minority shareholders.Shareholders' Meeting
The shareholders' meeting as the highest authority of the company exercises its powers in strict accordance with the "Articles
of Association" and the "Rules of Procedure for Shareholders' Meetings." It treats all shareholders equally ensuring their Director Director
participation and decision-making rights on important company matters. The notification convening resolutions and voting Gender Age
methods of the shareholders' meeting all comply with relevant regulations.During the reporting period
Male Female Age 40–50 Age 50–60 Age above 60
The Company held 4 shareholders' Reviewed And Approved 17
meetings Proposals
Director
Board of Directors Education Director Background Category
The board of directors is accountable to the Shareholders' Meeting and the Company has established the "Board Meeting Rules"
to standardize the meeting procedures and decision-making processes of the board. The board has four specialized committees:
the Audit Committee Nomination Committee Compensation and Evaluation Committee and Strategy Committee as well as
a Special Committee for Independent Directors. Each committee strictly performs its duties in accordance with relevant laws
regulations and meeting rules ensuring the scientific decision-making of the board on major issues. Bachelor's Degree Master's Degree Doctoral Degree Independent Director Non-independent Director
23 24Supervisory Board Compliance management structure
The Supervisory Board is the Company's supervisory body accountable to the Shareholders' Meeting. The Company has
established and strictly implemented the "Rules of Procedure for Supervisory Board Meetings." The members of the Supervisory
Board effectively perform their duties supervising the actions of the board of directors and senior management in executing their
Board of Directors
company duties safeguarding the interests of all shareholders. Strategic Level
During the reporting period Oversight Level Board of Supervisors
The Company held Supervisory Board Reviewed 28 proposals
meetings Compliance Management
Committee Management Level
Chief Compliance Officer
Operational Level
Compensation Management for Directors Supervisors and Committee
Senior Executives
In terms of compensation management the company adheres to the principles of fairness motivation and compliance and has
formulated the "Compensation Management System for Directors Supervisors and Senior Executives." The Compensation and
Evaluation Committee is responsible for formulating and reviewing the company's compensation policies compensation plans Compliance Management Operations
and performance evaluations for directors and senior executives ensuring that the executive compensation structure reflects
performance orientation while aligning with the Company's long-term strategic goals. Establish necessary mechanisms and processes to identify compliance requirements
The compensation structure for internal directors supervisors and senior executives consists of base salary and performance- analyze gaps between current business practices and compliance obligations and determine
based bonuses. The performance bonus is determined based on the Company's annual operating performance and individual the root causes of potential violations. Evaluate the likelihood and severity of risks and
assessment results and is linked to the Company's strategic objectives. Independent and external directors receive a fixed monthly prioritize compliance risk management based on business strategy market environment
stipend. Risk Assessment and the Company's risk tolerance.During the reporting period in strict accordance with the "Administrative Measures for Equity Incentives of Listed Companies" Establish a compliance risk early warning mechanism tailored to the Company's risk profile
and other relevant laws and regulations the Company formulated the "2024 Restricted Stock Incentive Plan" to establish a sound and operational realities. Timely issue early warnings and formulate emergency response
long-term incentive mechanism. By setting clear incentive targets and performance standards the Company aims to fully motivate plans. These plans should clearly define the composition of the emergency response team
directors and senior executives while ensuring their independence and diligence in performing their duties. response procedures communication mechanisms emergency measures and resource
Risk Early Warning allocation.During the reporting period Develop a comprehensive compliance risk response mechanism select appropriate response
strategies assess current handling capabilities and formulate and implement response
The Company paid a total of RMB 11621800 in compensation to directors supervisors
plans. Ensure that all identified and assessed compliance risks are addressed with timely
and senior executives
Risk Response and appropriate control and mitigation measures to keep risks within acceptable levels.Compliance Culture Development
Compliance and Risk Management The Company strengthens employees' compliance awareness through
ongoing efforts in building a compliance-oriented culture. During the During the reporting period
reporting period compliance training sessions were conducted for
Compliance Operations directors supervisors and senior executives as well as on compliance The Company headquarters conducted
management systems. These trainings targeted all relevant departments four legal training sessions.Genbyte continuously improves its compliance management system establishing a framework that aligns with its development including management audit legal and business units. By enhancing
needs. In 2024 the Company comprehensively revised its "Compliance Management System" and formulated the "Code of Conduct employees' awareness of compliance risks and their compliance
for Directors Supervisors and Senior Executives." A compliance management organizational structure was established including capabilities the company fosters a culture of "compliance in every role
the formation of a Compliance Management Committee. Legal and regulatory reviews were made a mandatory prerequisite for and every task." This culture-driven approach effectively prevents and
major business decisions and operations effectively integrating compliance into all aspects of the Company's operations. mitigates compliance risks while enhancing corporate governance and
market competitiveness.
25 26Compliance Training case Risk Management
Genbyte continues to enhance the construction of its enterprise-wide risk management system by formulating key frameworks
On Februar y 27 2024 the Company organized a such as the Risk Management System Policy and the Risk Management Measures and Supervision Mechanism. A three-tier risk
specialized training session on "Information Disclosure warning system—comprising department-level monitoring functional-level review and audit-level supervision—has been
Compliance Management" for multiple departments. established to strengthen oversight across all levels.The training focused on case studies of information The Audit Department assigns responsible departments and designated risk managers for each major risk item listed in the Annual
disclosure updates on relevant legal developments and Major Risk Register specifying detailed control measures and implementation timelines.compliance requirements as well as risk identification The Company has further refined a five-tier risk governance structure involving the Board of Directors – Audit Committee –
and response strategies. The session aimed to ensure Management – Business Departments – Audit Department and operates under a "Three Lines of Defense" model. This framework
that participants clearly understand the boundaries of clearly delineates responsibilities at each level and is gradually evolving into a comprehensive risk management system
compliance management enhance their risk assessment encompassing strategic operational financial compliance and ESG-related risks.capabilities and promote the Company's lawful and
compliant operations. Compliance Training Session Internal Control Execution and Supervision Process
The Audit Committee regularly reviews risk management reports and deliberates
on documents such as the Annual Major Risk List Risk Assessment Report and
Risk Alert Report.Internal Control Development Board Oversight Major risk issues are promptly reported to the Board of Directors which provides
guidance on risk mitigation.To continuously optimize and enhance its internal control mechanisms the Company strictly adheres to the Company Law of the
People's Republic of China the Basic Standards for Enterprise Internal Control and other relevant regulations. It has formulated Management regularly convenes joint risk meetings to analyze emerging risks
internal documents such as the Internal Control System and Internal Control Procedures steadily improving its internal control in macroeconomic trends regulatory changes and business operations and to
management framework. define key risk prevention priorities.Following principles of "full-process coverage clear responsibilities issue identification and closed-loop rectification" Department heads serve as the primary risk owners bearing responsibility for
the Company ensures standardized operations in line with listed Company requirements and continually strengthens the Executive Oversight major risk prevention within their respective areas.implementation and supervision of internal controls.As the third line of defense the Audit Department conducts regular internal control
evaluations and audits of major risk follow-ups to assess the effectiveness of risk
Internal Control Execution and Supervision Process management practices.It also carries out accountability audits on significant risk events and negligence in
Board of Directors Final evaluation and decision-making Independent Audit Oversight risk management ensuring that accountability measures and system corrections
are implemented in parallel.Audit Committee Periodic assessments and deliberation on major risks
Internal Audit Department Independent supervision and specialized audits 2024 Risk Identification and Response
Functional Departments Regular inspections and compliance reviews The Company has continued to refine its risk management processes by compiling the 2024 Risk Management Report. Risk control
and compliance checkpoints have been embedded at key stages of business workflows to enable proactive risk prevention. An
Business Units Daily implementation and self-inspections organization-wide risk identification and assessment was conducted for the year resulting in the 2024 Major Risk List. Effective
control measures were implemented to mitigate identified risks while potential major risks were documented in dedicated reports
and submitted to the Audit Committee for review.Strengthening Internal Audit Oversight
The Company has established an Internal Audit Management System under which the Internal Audit Department operates directly Tax Management
under the Audit Committee of the Board of Directors. This department is responsible for organizing and carrying out day-to-day
audit tasks including verifying the authenticity and completeness of financial information and monitoring the establishment and The Company strictly adheres to relevant laws and regulations including During the reporting period
implementation of internal control systems. the Law of the People's Republic of China on the Administration of Tax
In 2024 the Company focused on key areas such as compliance management financial control major investments and ESG Collection and the Enterprise Income Tax Law of the People's Republic of The Company's total tax payment
management diligently executing its annual audit plan. Over the year a total of 15 internal audit projects were conducted China. It has established a Tax Management Policy based on the principle amounted to RMB 23.312 million.resulting in 28 audit recommendations. By the end of the reporting period 22 of these recommendations had been implemented of "strict compliance with national tax laws and timely full payment of
with 3 included in the 2025 continuous improvement plan. taxes." The Company fulfills its tax obligations by conducting regular tax RMB million
risk assessments and continuously improving its risk prevention measures.The Finance Department serves as the central unit for tax management
overseeing the entire process including tax planning filing and payment
and compliance monitoring.
27 28Enhancing Investor Relations Investor Returns
Management The Company places great importance on delivering returns to investors. Since its IPO it has actively implemented a dividend policy to enhance investor returns strictly adhering to the profit distribution policy outlined in its Articles of Association. It
also formulated the "Three-Years (2022–2024) Shareholder Dividend Return Plan." As of the publication date of this report the
Company has distributed nearly RMB 200 million in dividends (including the 2024 fiscal year). Notably the dividend payout ratio
Investor Relations was increased in the first half of 2024 with a cash dividend of RMB 4.5 (pre-tax) per 10 shares totaling RMB 50.3006 million—representing 55.63% of the net profit for the period.To standardize its investor relations practices promote a better
understanding of the Company and maximize both corporate value Percentage of Net Profit
and shareholder interests Genbyte has established an Investor Dividend Year
Dividend Plan Dividend Amount
(Pre-tax) (RMB 10000) Attributable to Shareholders of the Listed Company
Relations Management Policy in accordance with the Securities Law
of the People's Republic of China and relevant guidelines on listed 2020 3 RMB per 10 shares 3288.00 18.93%
company-investor relations.The Company maintains regular communication with investors 2021 3 RMB per 10 shares 3342.07 15.91%
through multiple channels and platforms including investor
hotlines online Q&A platforms public email brokerage strategy 2022 3 RMB per 10 shares 3324.97 19.49%
meetings roadshows and conference calls. Timely responses are
provided to investor inquiries to ensure their right to information and 2024 Interim 4.5 RMB per 10 shares 5030.06 55.63%
consultation.Additionally to diversify communication formats and broaden Institutional Investor Research Activities 2024 4.5 RMB per 10 shares 3 5008.70 24.64%
engagement the Company leverages illustrated annual report bonus shares per 10 shares
summaries its official WeChat account and corporate website
to promote transparency and enhance the quality of information
disclosure.Practicing Business Ethics
During the reporting period
The Company conducted a total of 27 Organized 1 group investor Genbyte upholds fair competition and integrity strictly adhering to domestic laws such as the Anti-Monopoly Law of the People's
institutional investor research activities Held 2 earnings briefings reception event Republic of China Anti-Unfair Competition Law of the People's Republic of China Anti-Money Laundering Law of the People's
Republic of China and international standards like the United Nations Convention against Corruption. The Company has established
several internal management systems including the Genbyte Code of Business Conduct Business Ethics and Compliance System
Anti-Bribery Compliance Policy Ethical Standards Control Procedures and Labor and Business Ethics Risk Management Control
Procedures. Additionally the Company has implemented management procedures such as the Social Responsibility and Business
It published 14 records of investor Responded to 72 investor inquiries on
relations activities the online Q&A platform Achieving a 100% response rate Ethics Management Control Procedures Fair Trade Advertising and Competition Control Procedures Prohibition of Collusion
Control Procedures and Conflict of Interest Reporting Control Procedures. With a "zero-tolerance" approach the Company
integrates integrity and compliance into its business strategy aiming to eliminate all forms of commercial fraud false advertising
and improper benefits transfer.Information Disclosure The Company has established an Ethics Committee to conduct regular audits of ethical management. It also set up an independent Compliance Investigation Team responsible for overseeing business behavior both inside and outside the Company while
Genbyte strictly complies with the Measures for the Administration of Information Disclosure by Listed Companies and other strengthening the board and management's leadership in integrity and compliance. Business ethics and compliance targets are
relevant laws regulations and guidelines. The Company has established the Information Disclosure Management Policy and the now part of the executive performance evaluation system with executive compensation closely tied to target achievement.Internal Reporting System for Material Information aiming to enhance communication with shareholders and potential investors
through high-quality information disclosure and improve corporate transparency. In 2024 the Company had no false records
misleading statements or material omissions and fully complied with information disclosure regulations.During the reporting period
The Company disclosed 6 regular reports 118 interim reports
with no incidents of penalties arising from information disclosure violations Genbyte– Certificate of Membership in the Guangming District Clean Enterprise Alliance
29 30Genbyte has built a comprehensive anti-commercial bribery and anti-corruption system that includes prevention monitoring and During the reporting period
punishment. The system focuses on curbing corruption risks at the source through ethics training and transparent operational
guidelines to ensure that business activities are compliant and transparent. The Company has established an independent The Company conducted one Anti-corruption training session lasting
supervisory body with full investigative powers to ensure the effectiveness of the system creating an open and fair corporate anti-bribery three hours
environment. It emphasizes talent development and system building in the areas of anti-commercial bribery and anti-corruption
continuously improving the professionalism of employees and supply chain partners through diversified training and practical
experience. Specialized courses are offered to enhance understanding and application of anti-corruption policies covering
everyone from the board and management to frontline employees fostering a comprehensive culture of integrity. Additionally The training achieved 100% coverage among 60% Coverage among employees directors and senior management
through case studies and experience exchange sessions the Company encourages participants to flexibly apply compliance
knowledge in complex business scenarios improving their ability to address challenges.The Company works with its suppliers to
establish a shared growth mechanism regularly evaluating the effectiveness of anti-corruption measures continuously optimizing
processes and ensuring that all parties maintain a fair and transparent business order. It has created a multi-level supervision
network focused on key business areas and high-risk sectors assigning clear responsibilities and implementing differentiated The pass rate for the compliance The signing rate for integrity-related No anti-corruption or anti-bribery training assessment was 100% commitments and business ethics incidents were reported during
management. By establishing an internal and external joint supervision mechanism the company combines special audits with declarations reached 90% the period
daily monitoring to strengthen control over decision-making processes contract signing and fund utilization. Regular integrity
risk assessments are conducted to identify potential problem areas develop targeted prevention measures and adjust them
dynamically. The Company also provides clear reporting channels and fosters an environment of collective participation ensuring
that supervision and assessment work are thorough and effective helping prevent commercial bribery and corruption.Genbyte actively promotes the signing of Integrity Agreements requiring suppliers and contractors to sign anti-bribery clauses
as part of mandatory contractual terms. The Company has also implemented a "background check screening" mechanism for
compliance reviews of high-risk partners and refuses to cooperate with third parties with a history of corruption. For internal Case Study: Anti-Bribery and Anti-Corruption Training Case
matters new employees are required to sign the Business Ethics and Anti-Bribery Commitment upon onboarding and undergo
compliance training. Key positions must also sign an Integrity Commitment. The Company regularly organizes compliance
knowledge competitions lectures and other activities to foster a strong culture of compliance. In addition the Company offers In 2024 the Company conducted anti-bribery and anti-corruption training for all staff and management personnel.multiple reporting methods including phone email mail and in-person reporting. It responds to and investigates reports 24/7 The training covered various types of commercial bribery and corruption offenses with detailed explanations
in accordance with the Internal Reporting and Investigation System Whistleblower Management Procedures and Whistleblower of relevant legal provisions. It also provided risk prevention recommendations including strengthening internal
Protection Control Procedures ensuring strict confidentiality of whistleblower identities. control systems enhancing legal training for senior executives and establishing effective whistleblowing channels.During the reporting period no incidents of unfair competition commercial bribery or corruption occurred. Key points on confidentiality obligations and compliance management measures were also discussed. By analyzing
real-world cases as warnings the training helped raise awareness of anti-corruption practices among employees
and management laying a solid foundation for the company’s sustainable and sound development.Genbyte Integrity Reporting Channels
Responsible Department Reporting Hotline Reporting Email
Office of the General Manager +86 18938071238 andit zb@genbytech.com
Organizational Structure For Business Ethics Management
General Manager Leads the Company's business ethics and compliance work
GM Office Coordinates and implements business ethics and compliance work
Anti-Bribery and Anti-Corruption Training
Subsidiaries and Compliance HR and Administration
Departments Investigation Team Center Audit Department Legal Department
Responsible for Establishes Reviews employees' Reviews business Responsible for the
implementing business investigation team business ethics and ethics and compliance formulation of business
ethics and compliance ethics and compliance members and leads compliance situations mechanisms or systems
requirements within coordinates with the
systems mechanisms
investigations and the effectiveness of Compliance Team and and training; provides their respective job internal control systems
handles violations risk prevention and
scopes control advice
31 32Preserving Greenery
and Painting an Ecological Landscape
35 Addressing Climate Change
39 Creating a Green Environment
43 Enhance Pollution Control
46 Comprehensive Resource Utilization
52 Green Operations Empowerment
54 Protection of Ecological Diversity
33 34Addressing Climate Change Impact Affected Financial Response
Type Description Likelihood Impact Level Time Value Level Impact Measuresframe Chain
Climate Governance Measures Global warming has led to an increase in Medium Increase Continuously monitor the
Chronic cooling demands for and Operations General in changing trends of chronic
Genbyte fully recognizes the urgency and importance of addressing climate change and remains firmly committed to its Risk offices and production Long- opera risks and consider the impact
environmental responsibilities while advancing sustainable development within the industry. The Company integrates climate- resulting in higher term tional costs of climate-related chronic risks.related risks and opportunities into its overall strategic framework sets quantifiable carbon emission targets and establishes an operational costs.ESG management body to regularly review climate goal progress. Climate-related disclosures are prepared in line with ISSB and Stricter carbon Short Increase Strengthen efforts in carbon
GRI standards ensuring transparency and traceability of strategies and objectives. Trans emission control Medium in footprint and carbon audit forma Policy and Operations General produc
To further strengthen the capabilities of ESG team members in carbon management and support the implementation of the policies have led work and continuously tion Risk to an increase in Long- tion
Company's green transformation and sustainability strategies Genbyte conducts carbon management training with an annual Risk monitor relevant policy production costs. term costs changes.target coverage rate of 95%. As of the end of the reporting period some employees have obtained carbon emission management
certification. Failure to keep
Actively invest in the research
up with timely Medium and development of low-
Tech technological Decline and Operations in carbon technologies and
During the reporting period nology iterations may lead Long- Down- General further strengthen the Risk to a decline in the revenueterm streams investment in low-carbon
product's market
The Company conducted 15 carbon management Achieving An Annual Training Coverage Rate Of products such as photovoltaics competitiveness.training sessions Over 98% and energy storage.Proper response to
extreme weather can
prevent production
interruptions facilitate
quick recovery after 1.Strengthen disaster
Dual-Carbon Policy Training Case a disaster ensure emergency drills to enable
timely fulfillment of rapid recovery of production
contracts and capture Increase after a disaster.In 2024 the Company conducted a training session on the market orders. in 2. Actively participate in the Operations
dual-carbon goals and related knowledge. The training Proper utilization of Non- carbon trading market and Opportunity Short-policies such as carbon Down- Opera explore the application of focused on the implementation pathway of China's termtrading can further streams High
national "dual-carbon" strategy offering a systematic ting
carbon financial instruments.generate profits. Reven 3.Closely monitor government
interpretation of supporting local government policies Low-carbon products ues policies to obtain timely
subsidy measures and key tasks. Delivered through a and industries support in terms of policy
"policy interpretation and business discussion" format supported by technology and resources.the session facilitated in-depth discussions on how to development policies also benefit from
effectively implement dual-carbon objectives helping corresponding
employees gain a clearer understanding of policy subsidies and tax
essentials and execution direction. Dual-Carbon Policy Training incentives.Probability of occurrence: rated from 1 (low) to 5 (high)
Level of impact: rated from 1 (low) to 5 (high)
Climate Change Response Strategy For all financially material topics in this report the time frame of impact is defined as follows: - Short term: within 1 year
- Medium term: 1 to 5 years
- Long term: more than 5 years
Impact Impact Affected Financial Response Type Description Likelihood Level Time Value Level Impact Measures Management of Climate Change Impacts Risks and frame Chain Opportunities
Extreme weather Strengthen emergency response
conditions including Increase capabilities equip with relevant The Company follows the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) to thoroughly
Physical Acute typhoons and torrential Short- Operations General in opera- emergency supplies and facilities
term tional analyze the potential physical risks and transformation challenges that climate change may pose to various aspects of the Risk Risk rain can result in asset monitor extreme weather conditions business supply chain market expansion and regulatory compliance. At the same time the Company also recognizes the new
damage and interruptions costs and prepare in advance for potential
to production. responses. development opportunities brought about by the low-carbon economy transition. Based on a comprehensive assessment of risks
and opportunities the company has quantified the potential financial impacts of climate change on its financial performance
Unless otherwise specified all data in this section pertains to Genbyte's headquarters except for environmental protection investment and training data which include operational processes and brand reputation considering both the magnitude and time horizon of these impacts. Corresponding
figures from both the headquarters and its sub-subsidiary in Vietnam. priorities have been determined.
35 36Based on the assessment results the Company has developed a series of targeted risk mitigation measures and transformation Greenhouse Gas Emission Accounting Standards Explanation:
action plans actively adjusting its current and future strategic layout to effectively reduce risks and seize transformation 1."Notice of the General Office of the National Development and Reform Commission on Issuing the First Batch of 10 Industry
opportunities. The Company is expanding its renewable energy business developing low-carbon products and integrating supply Enterprise Greenhouse Gas Accounting Methods and Reporting Guidelines (Trial)" (NDRC Office Climate [2013] No. 2526)
chain carbon management into cooperation terms requiring core suppliers to gradually complete carbon footprint accounting. 2."Notice of the General Office of the National Development and Reform Commission on Issuing the Second Batch of 4 Industry
Furthermore the Company prioritizes funding for low-carbon technology research and development and energy efficiency Enterprise Greenhouse Gas Accounting Methods and Reporting Guidelines (Trial)" (NDRC Office Climate [2014] No. 2920)
improvement projects increasing the proportion of the budget allocated for clean energy equipment upgrades. Through asset 3."Notice of the General Office of the National Development and Reform Commission on Issuing the Third Batch of 10 Industry
divestiture the company is gradually exiting high-carbon assets and optimizing its investment portfolio. Enterprise Greenhouse Gas Accounting Methods and Reporting Guidelines (Trial)" (NDRC Office Climate [2015] No. 1722)
The Company has already implemented a waste heat recovery system in its new Zhenwei Industrial Park to improve energy 4."Greenhouse Gas Emission Accounting Methods and Reporting Guidelines for Other Industrial Enterprises (Trial)"
efficiency. Additionally several high-energy-consuming devices have been replaced with more energy-efficient alternatives— 5."Greenhouse Gas Emission Accounting Methods and Reporting Guidelines for Electronic Equipment Manufacturing Enterprises"
for example upgrading from Level 3 to Level 1 energy-efficient air conditioners. Looking ahead to 2025 the Company plans to 6. Other relevant national provincial and industry standards and regulations
further promote carbon label certification for product life cycles and establish a digital carbon management platform. It also aims
to strengthen emergency training and drills for extreme weather events and will equip the plant with facilities and emergency
supplies for flood typhoon and earthquake preparedness—enhancing its resilience to extreme climate conditions. Greenhouse Gas Emissions Management
The Company has established the Energy Consumption and Greenhouse Gas Emissions Control Procedure along with short-
Climate Change Indicators and Targets term and mid-to-long-term implementation plans for greenhouse gas reduction. By promoting green office practices and other initiatives the Company aims to use energy and resources more efficiently continuously reduce consumption and minimize
greenhouse gas emissions to the greatest extent possible.Genbyte has prepared the "2023 Greenhouse Gas Emissions Report" which has been verified by a third-party accredited agency.The Company's greenhouse gas emissions mainly result from the consumption of liquefied petroleum gas gasoline diesel and
electricity.The Company integrates low-carbon transformation goals into its business strategy setting a quantified target for reducing Replace outdated equipment with new energy-efficient models to reduce energy consumption
unit product carbon emission intensity (tCO2e/10000 PCS) by 2% by 2025 compared to 2023 levels with the goal of achieving
operational carbon neutrality by 2030. The Company has developed a carbon neutrality roadmap and will implement it in phases. Utilize variable frequency energy-saving devices and environmentally friendly lighting and
This will be achieved through technological innovation and carbon offset initiatives gradually working towards operational carbon Short-Term Greenhouse ensure effective reactive power compensation
neutrality. Gas
Reduction Establish an internal monitoring system to check air conditioning usage and ensure all devices
Plan are turned off when offices are vacated
Indicator Unit 2023 (Base Year) 2024 Target 2025 Target
Promote energy-saving awareness among employees encouraging practices such as turning
Unit Product Carbon (2% decrease off lights and equipment when not in use
Emission Intensity tCO2e/10000 PCS compared to 2023)
Indicator Unit
Mid-to- Establish energy-saving target responsibility mechanisms integrating performance into staff evaluations
Total Greenhouse Gas Emissions tCO2e Long-Term 6629.21 Greenhouse
Gas Continue replacing old equipment with lower energy-consuming alternatives
Direct Fossil fuel combustion emissions tCO2e
74.43 Reduction Plan
Greenhouse Promote and implement clean production practices on an ongoing basis
Gas Emissions Mobile combustion direct tCO2e
emissions 226.75(Scope 1)
Direct fugitive emissions from
human systems tCO2e 72.92
Indirect Greenhouse
Gas Emissions The emissions corresponding to
(Scope 2) the net purchased electricity
tCO2e 4411.56
Indirect greenhouse gas
Other Indirect emissions from transportation
tCO2e 1662.05
Greenhouse Gas
Emissions (Scope 3) Emissions from the treatment of solid and liquid waste tCO2e 181.5
Unit product greenhouse gas emission intensity tCO2e/10000 PCS 2.72
37 38Creating a Green Environment EHS organization chart
Overview of Environmental Management Primary Person in
Charge of EHS
Genbyte places strong emphasis on environmental protection
and strictly complies with the Environmental Protection
Law of the People's Republic of China and other relevant Environmental Policy Manager of the
environmental regulations. The Company has established a Administration Department
comprehensive environmental management system including Enhance environmental awareness and comply with environmental regulations
documents such as the Environmental and Safety Management Conser ve energ y reduce emiss ions and
Manual Environmental Operation Control Procedure consumption and produce green products Procurement Production Warehouse Pilot
Environmental Monitoring Report and Environmental Department Department Department Production
Engineering
Department
and Occupational Health & Safety Performance Evaluation Department
Procedure. EHS Organizational Structure Chart
For all new renovated or expanded projects the Company
str ict ly fol lows the "Three Simultaneit ies" pol ic y—
ensuring environmental protection facilities are designed
constructed and put into operation simultaneously with
the main project. Environmental impact assessments
(EIAs) and project acceptance are carried out in accordance
with regulatory requirements. The Company has obtained
necessary environmental permits and approvals from
Shenzhen authorities including EIA approvals environmental
acceptance confirmations and pollutant discharge permits.The Company's inverter and high-efficiency intelligent energy
storage system project has completed EIA registration self-
assessment and has received expert opinions.Genbyte has also developed procedures such as the Environmental Monitoring and Measurement Control Procedure and a Self-
Monitoring Plan. Under this plan third-party agencies with CMA certification are commissioned annually to monitor industrial
waste gas and boundary noise levels to ensure emissions remain within regulatory limits.During the reporting period the Company did not experience any environmental pollution incidents received no penalties
from environmental authorities and identified no major deficiencies in its environmental monitoring plans or risk management
measures.EHS Knowledge Training Case Study
In 2024 the Company organized a comprehensive EHS training program for all employees. The training covered key
Environmental Management and Governance areas including: proper waste disposal procedures risk control for chemicals and flammable materials full-cycle fire
emergency response (equipment use and evacuation drills) occupational health protection systems (first aid and
prevention of bodily fluid transmission) and standardized use of personal protective equipment (PPE). The program
The Company has established an EHS (Environment Health and Safety) Management Committee with the General Manager combined theoretical instruction with practical exercises to enhance employees' risk management capabilities and
serving as the Chief Commander and the Administration Manager as the Deputy EHS Coordinator. The committee comprises emergency response skills.representatives from various shifts job types and hierarchical levels.EHS Committee members are responsible for coordinating with qualified testing agencies to conduct annual inspections of
drinking water workshop air quality and noise levels. Test reports are documented and any non-compliance triggers immediate
corrective actions.In accordance with the Environmental Aspect Identification and Evaluation Control Procedure and the Hazard Identification
and Risk Assessment Control Procedure EHS members identify environmental aspects and hazards related to the Company's
operations products or services that can be controlled or influenced. They assess these to determine which have—or may have—
a significant environmental impact or pose unacceptable risks. These findings are factored into the setting of environmental and
occupational health and safety objectives.Additionally the Company conducts regular EHS training to enhance awareness and capabilities in environmental safety. During
the reporting period the company successfully passed the ISO 14001 Environmental Management System certification.EHS Knowledge Training
39 40Environmental Management Strategy Emergency Plans and Drills
The Company conducts environmental safety risk assessments and has developed an Emergency Response Plan for Environmental
Impact Impact Affected Finan- Response Incidents which has been filed with the relevant authorities. In parallel an emergency response mechanism has been established Type Description Likelihood Level Time Value Level cial Measures with roles and responsibilities outlined in the Emergency Preparedness and Response Control Procedure. Relevant staff members frame Chain Impact receive regular training and the Company conducts emergency drills to enhance employees' ability to handle environmental
emergencies and respond to unexpected environmental incidents.Non-compliance Strengthen incoming
Enviro with hazardous material control by sampling
nmen substance control for each batch and archiving
tal raw materials or end- Dec RoHS reports; improve Joint Park Fire Drill Case Study
Compl Short- Opera
Risk of-pipe pollution Moderate rease environmental facility iance control may lead term tions in management and conduct
Risk to lost orders or revenue regular testing via certified In 2024 to test the emergency coordination and rescue capabilities of the entire park and surrounding businesses
regulatory penalties third parties and to ensure the safety of property and employees while minimizing potential losses the Company organized an
emergency fire drill. The exercise enhanced the production line employees' four key firefighting abilities raised
awareness of environmental protection and improved their capability to handle environmental pollution. It also
validated the feasibility of the emergency response plan for lithium battery fires
Growing global
emphasis on
environmental Phase out high-pollution
protection demands materials; adopt
continued R&D Opera Increase biodegradable and
Techn and use of eco- Medium tions Mode in pro recyclable alternatives;
ology friendly materials/ /Long- Downs rate duction assess carbon footprint
Risk technologies which term tream cost across material lifecycle and
could increase set reduction targets
costs and affect
competitiveness
Fire Drill
Improve and maintain
compliance with a robust
Dec environmental management
A sound rease system; proactively
Opportunity environmental Short- Opera Moderate in showcase environmental
managem term tions revenue efforts through ESG reporting Hazard Identification and Rectification
to gain public and investor
trust Genbyte has established the Environmental and Safety Health Monitoring Control Procedure and other systems for hazard
identification and mitigation. The Company conducts monthly checks on the implementation of energy and resource conservation
the clearance of fire exits and the proper use of personal protective equipment. During the reporting period the Company
achieved a hazard rectification rate of over 95%.Environmental Management Impact Risk and Opportunity Add supplementary safety warning labels Add Chinese emergency stop labels
ManagementStrategy
Genbyte has developed the Environmental Analysis and Risk & Opportunity Response Control Procedure which identifies potential
environmental risks and opportunities based on internal and external factors and stakeholder needs. The Company addresses
these risks and opportunities through strategic planning and actions to avoid or mitigate environmental risks ensuring the effective
operation of the environmental management system and continuous improvement.Before Rectification After Rectification Before Rectification After Rectification
41 42Environmental Management Indicators and Goals Exhaust Gas Management
The company has established environmental and safety goals for 2024 in accordance with the "Target Indicators and Management The Company's air emissions primarily come from soldering furnaces welding equipment kitchen exhaust and vehicle emissions.Program Procedure." By the end of the reporting period all environmental goals have been achieved. In strict adherence to the Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution and
other relevant regulations the Company has formulated the Operation Maintenance and Servicing Guidelines for Exhaust Gas
Indicators Goals Achievement in 2024 Treatment Facilities ensuring routine maintenance of the equipment. Workstations associated with exhaust gas emissions across
production lines are equipped with negative pressure exhaust systems or are enclosed within sealed equipment achieving a
Emissions of Exhaust Gas 100% Compliance Achieved collection efficiency of over 85%. The end-of-pipe treatment utilizes activated carbon adsorption with the carbon being replaced
Solid Waste (including every three months.hazardous waste) Disposal 100% Recycled Achieved
Noise Emissions 100% Compliance Achieved Indicators Unit 2024
Environmental and Safety 100% Achieved Total Exhaust Gas Emissions 10000 m3Training Completion Rate
Exhaust Gas Emission Intensity 10000 m3 / Million RMB Revenue
During the Reporting Period Volatile Organic Compounds (VOC) Tons
Tin and Its Compounds Kilograms
The Company invested a total of RMB 643200 in It conducted 144 environmental training sessions
environmental protection
RMB Noise Management
With a total attendance of 3278 A cumulative training duration of Averaging 0.99 hours per person The Company's noise emissions mainly originate from air compressors vehicles elevators and production equipment. In strict
participants 1639 hours compliance with the Law of the People's Republic of China on the Prevention and Control of Environmental Noise Pollution
the Company has adopted noise reduction measures such as vibration dampers soundproof enclosures and acoustic barriers
to minimize noise generation and transmission. Employees are also provided with protective equipment such as earplugs and
earmuffs. During the reporting period the noise levels at the factory boundary ranged from 58.5 to 62.1 dB meeting the standard
limit of 65 dB(A) set by Emission Standard for Industrial Enterprises Noise at Boundary (GB 12348-2008).Waste Management
Enhance Pollution Control The Company strictly handles waste disposal in accordance with the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste and other relevant regulations. It has established procedures such as the
Solid Waste Management Procedure Waste Control Procedure and Hazardous Chemicals Control Procedure to ensure traceable
management of all aspects of waste generation utilization collection transportation storage and disposal under the supervision
of environmental authorities to ensure proper treatment of industrial solid waste.Environmental Management Indicators and Goals
All waste is categorized into three types: recyclable waste non-recyclable waste and hazardous waste. Recyclable waste such as
The wastewater generated by Genbyte primarily comes from domestic sources such as the cafeteria restrooms in the factory area used paper plastics and metals is collected by the HR department which liaises regularly with recycling companies and conducts
and employee dormitories. The Company strictly complies with the Law of the People's Republic of China on Prevention and occasional checks to ensure hazardous waste is not mishandled. Non-recyclable waste such as household garbage is collected
Control of Water Pollution and has established procedures such as the Wastewater Exhaust Gas and Noise Control Procedure and by departments placed in designated bins and transported to the waste pool by cleaning staff. Hazardous waste such as expired
the Rainwater Pollution Discharge Control Procedure. Rainwater and sewage are discharged through separate pipelines with a chemicals or materials contaminated with hazardous substances is stored in specialized leak- and vapor-proof containers with
detailed sewage discharge network diagram in place. To ensure compliant discharge the Company has implemented necessary clear labeling. Hazardous waste storage areas comply with the Standard for Pollution Control on Hazardous Waste Storage (GB
engineering control measures. The Human Resources and Administration Department regularly inspects the sewage discharge 18597-2023) and disposal is handled by licensed third-party agencies with valid hazardous waste operation and transport permits.system to detect any abnormalities. In addition external environmental monitoring agencies conduct periodic assessments to Storage areas are equipped with appropriate fire extinguishers and cleaning equipment.ensure regulatory compliance.For product-related hazardous substances the Company complies with all applicable regulations restricting or prohibiting
certain materials including those governing labeling for recycling and disposal. It has implemented the Control Procedure for
Environmentally Hazardous Substances in Products and the Environmental Hazardous Substance Management Standard. The
Quality Department oversees the monitoring and testing of restricted substances to ensure compliance with relevant laws and
customer requirements.
43 44Indicators Unit 2024 Comprehensive Resource Utilization
Non-Hazardous Waste Plastics Tons 12.70
Waste To enhance energy and resource management reduce consumption eliminate waste and improve economic efficiency Genbyte
Emissions Waste Paper Tons 16.10 has implemented the Energy Conservation and Consumption Reduction Management Procedure and the Energy and Resource
Control Procedure. A dedicated task force was formed involving all relevant departments to manage and monitor the use of water
Total Non-Hazardous Waste Generated electricity various oils office paper stationery and other production support resources.Tons 28.80 Based on actual consumption data from the previous year the HR & Administration Department prepares the company's annual
environmental management plan for resource and energy conservation. This plan includes energy-saving goals performance
Non-Hazardous Waste Generation Intensity Tons / Million RMB Revenue 0.0217 indicators detailed implementation actions department responsibilities and investment budgets. Each department is required to
formulate its own energy-saving plan accordingly.Non-Hazardous Waste Disposal Rate % 100 Departments submit monthly energy consumption reports to the HR & Administration Department. These are then compared with
the targets outlined in the energy-saving plan. If any department exceeds planned consumption or fails to meet its savings targets
Waste Organic Solvents (HW06) the cause is investigated in coordination with relevant departments corrective measures are developed and the implementation Tons 8.01 of these measures is closely monitored and evaluated.Spent Activated Carbon (HW49)
Hazardous Tons 14.68
W a s t e
Emissions Empty Containers (HW49) Tons 3.09
Waste Cleaning Agents (HW06) Tons 13.94 Energy Utilization
Used Mineral Oil (Engine Oil) (HW08) Tons 0.04 The Company's primary energy consumption comes from purchased electricity. A comprehensive energy management system has
been put in place with 2024 energy-saving targets defined and overseen by the energy conservation task force. The system assigns
Total Hazardous Waste Generated Tons 39.76 clear responsibilities to each department supports continuous improvement through regular energy audits and identifies further
energy-saving opportunities.Hazardous Waste Generation Intensity Tons / Million RMB Revenue 0.0299 Additionally a position-based responsibility system is enforced. Each electrical distribution room must be managed by trained personnel who are responsible for maintaining detailed operation records and ensuring both the quality and safety of electricity
supply.Hazardous Waste Disposal Rate % 100
Metric Unit 2022 2023 2024
Hazardous Waste Reduction Target Direct Energy
Consumption tons of standard coal
The Company set a target to reduce the amount of hazardous waste generated per unit of product in 2024 by 1% compared to 2023. Liquefied Petroleum
A corresponding waste reduction implementation plan was developed to support this goal. By the end of the reporting period the Gas (LPG) tons
Company successfully achieved the 2024 reduction target.Gasoline 10000 liters
Management Item 2023 2024
Diesel 10000 liters
Hazardous Waste Generated per
Unit Product (T/10000 pcs) 0.01808 0.017899 Indirect Energy
Consumption tons of standard coal
Target Improvement Baseline Year ↓ 1%
Purchased Electricity 10000 kWh
Achievement / 0.013074 Total Energy
Consumption tons of standard coal
Energy Consumption tons of standard coal / million
Waste Reduction Implementation Plan Intensity revenue
The calculation method for total energy consumption mainly refers to the "China Energy Statistical Yearbook - Appendix 4 - Reference Coefficients for Converting
Various Energies to Standard Coal" and the "General Principles for Comprehensive Energy Consumption Calculation GBT2589-2020."
Established a target accountability system by breaking down the reduction goal to each waste-
generating unit and incorporating it into the performance evaluations of responsible supervisors.Optimized raw material selection and usage to improve material utilization rates. Energy Conservation and Emission Reduction Measures
Adopted advanced production processes and equipment to reduce hazardous waste generation
at the source. Genbyte places strong emphasis on energy conservation and consumption reduction. The Company prioritizes the use of low-
Strengthened maintenance and operation of hazardous waste reduction facilities and equipment. power and energy-efficient equipment. During equipment upgrades outdated high-energy-consuming electromechanical devices
Continuously promoted cleaner production and the adoption of smart manufacturing are phased out and replaced with new technologies that prioritize energy efficiency.technologies to reduce resource waste and pollution emissions. In addition the Company enforces rigorous maintenance procedures to ensure all equipment operates properly and avoids
unnecessary energy waste due to malfunction. Operational standards have been established for key energy-consuming equipment
to regulate usage.
45 46Production schedules are optimized to minimize the frequency of equipment startups and reduce idle operation time. Routine
maintenance and inspections are strengthened to prevent abnormal equipment usage. Water Resource Utilization
Moreover the Company conducts ongoing energy-saving and environmental protection training to enhance employees' awareness The Company sources its water primarily from municipal supplies. Based on production and daily operational needs the
and practical skills in sustainability. Administration Department has installed water meters in both production and living areas. Annual water usage targets are set
according to the previous year's consumption and allocated to each department. Water metering is being gradually implemented
Energy Conservation and Consumption Reduction Control Procedure to reduce waste.Each responsible unit assigns personnel to inspect and log daily water usage and any detected leaks are immediately reported to
electricians for repair. The Administration Department is responsible for inspecting and maintaining pipelines to prevent water loss
Resource
Consumption Energy-saving Follow-up on through leaks and drips. The Human Resources Department posts signs and reminders in key water-use areas to raise employees' and Energy Operation and Consumption
Consumption Monitoring Data Collection Improvement Energy-saving awareness of water conservation. As of the end of the reporting period the Company had achieved its 2024 water usage target.Analysis
Management Plan Measures Initiatives
Indicator Unit 2022 2023 2024
Annual Total Water Usage m3 64122 102441.16 123438.46
Water Consumption Intensity m3 per million revenue 62.10 86.16 92.96
Training on Equipment Safety and Energy Consumption Awareness Case Study
In 2024 the Company organized training sessions for machinery operators from relevant departments focusing on Water Conservation Target
equipment safety and energy consumption awareness. This training enhanced employees' understanding of how
machines consume energy and empowered them to implement energy-saving practices more effectively in their The Company set a target to reduce water consumption per unit of product by 2% in 2024 compared to 2023 and developed a
daily operations. corresponding water-saving implementation plan. As of the end of the reporting period the 2024 water conservation target has
been achieved.Overall Water Use Target
Management Item 2023 2023
Water Consumption per Unit 42.04 41.23
Product (m3/10000 PCS)
Target Improvement Rate Baseline Year ↓ 2%
Achievement Status
Training on Equipment Safety and Energy Consumption Awareness / 40.59
Energy-Saving Implementation Plan Water Conservation Implementation Plan
Establish a target accountability system by breaking down energy-saving goals to each Establish a responsibility system by breaking down water-saving targets for each water-
energy-using unit and including them in the performance evaluation of the responsible using unit and incorporating them into the performance evaluations of responsible
supervisors. managers.Optimize production scheduling to improve equipment utilization and production Optimize scheduling to increase equipment utilization and production efficiency
efficiency thereby reducing energy consumption. thereby reducing water consumption.Enhance employee awareness through promotional activities and training encouraging Strengthen staff training and awareness programs to promote water and energy
water and energy conservation. conservation among all employees.Gradually phase out outdated equipment and replace it with new energy-efficient and Enhance water reuse rates and reduce the consumption of fresh water.environmentally friendly models.Strengthen inspections of insulation and heat preservation measures for supporting
facilities and assess the rationality of operational parameters to ensure energy-efficient
operations.Continue promoting clean production practices.
47 48Material Management Material and Packaging Management Measures
Genbyte strictly complies with national regulations such as the Circular Economy Promotion Law of the People's Republic of China Genbyte optimizes material storage through an intelligent warehousing system implementing precise management by zoning and classification. The system is equipped with environmental sensors for real-time monitoring of temperature and humidity to ensure
and the Law on the Promotion of Comprehensive Utilization of Resources and Circular Economy. The Company actively promotes storage safety and material quality stability.source reduction and efficient use strategies through process optimization and full lifecycle management aiming to improve the The Company promotes the QC 080000 Hazardous Substance Process Management System and through policies such as the HSF
utilization efficiency of key materials such as metals plastics electronic components and paper. Management Control Procedure Product Design and Development Control Procedure and Inspection Control Procedure it clearly
In metal usage the Company focuses on increasing the proportion of recycled content and minimizing loss through precision defines standards for sample material management material substitution packaging design inspection and usage thereby
manufacturing. For plastics it promotes the use of bio-based materials and recycled plastics while also improving product standardizing material management throughout the design and production process.A full-chain material management mechanism has been established enabling closed-loop dynamic monitoring from raw material
durability. In electronics modular designs are adopted to extend product lifespans. Paper materials are sourced from FSC-certified procurement and smart manufacturing to product packaging and waste recycling. Emphasis is placed on aligning resource input
suppliers and intelligent warehousing systems are used to reduce inventory waste. with actual demand optimizing surplus material integration and redistribution and continually improving resource utilization
Following the Solid Waste Pollution Prevention and Control Law the Company strengthens waste classification and reuse efficiency while ensuring product quality.gradually building a closed-loop material management system that ensures both quality and resource efficiency.In material selection the Company requires all suppliers to comply with the latest environmental
Supplier regulations and to sign a Declaration of Prohibited Substance Non-Use which includes but is not
Environmental limited to RoHS Directive compliance. Suppliers are also expected to integrate environmental
Requirements requirements into their product development and production approval processes to ensure all
materials provided through the supply chain meet the company's standards.The Company has established a BOM (Bill of Materials) Management Specification encouraging the
Raw Material use of innovative eco-friendly materials to reduce basic raw material consumption and dependence
RawU sMaagte rial on traditional resources. Additionally a digital SAP system is implemented to manage materials
Usage efficiently. This enables accurate demand forecasting and resource matching minimizing waste. All
Material Governance System materials entered into the system must be environmentally compliant including being lead-free and
halogen-free.With material utilization efficiency as a core objective the Company has developed a systematic management framework covering
the entire material lifecycle-from procurement to product delivery. This framework emphasizes precise resource matching surplus
material consolidation and optimized allocation to achieve closed-loop usage. The Company optimizes packaging design by replacing traditional materials with sustainable Packaging
A cross-functional material management governance structure has been established including dedicated teams for planning alternatives and applying lean production principles to control packaging consumption. This Design
oversight and execution with clear responsibilities at each stage. effectively reduces resource use and waste generation.To enhance employees' expertise in material utilization the Company regularly organizes training sessions and internal
benchmarking activities. Material input-output efficiency indicators are integrated into performance evaluations directly linking
material usage to employee performance. Additionally special incentives are offered for innovative recycling initiatives fostering a For reusable packaging the Company has introduced a Recycled Packaging Materials Management
competitive and resource-conscious work culture. Recycled Policy regulating the issuance recovery sorting and accounting of recyclable packaging. Efforts are
For example some employees have developed advanced recycling techniques that reduce raw material consumption without Packaging continuously made to reduce the weight and quantity of packaging materials. Cross-departmental Materials
compromising product quality. By aligning production needs with resource inputs they optimize surplus material reallocation to collaboration is promoted to build a packaging evaluation system and enhance supply chain
ensure maximum resource use. These teams also apply AI and big data technologies to make informed decisions across production management increasing the proportion of recyclable materials.storage and logistics. This professional approach not only advances corporate sustainability goals but also sets a strong example
for the industry. The Company has implemented policies such as the Warehouse Material Management Policy and
Warehousing Inventory Management Policy. Using an intelligent warehousing system (WMS and PDA) it achieves
Stage precise zoned storage management with environmental sensors monitoring temperature and
humidity in real time to ensure material safety and stable quality.The Company follows its Transportation Management Policy and Container Management Policy
Transportation adopting multimodal transport solutions to reduce carbon emissions. It also collaborates with
Stage third-party logistics providers to develop green packaging options and promote the use of reusable
containers enhancing sustainability across the supply chain.Material and Packaging Management Training
49 50Circular Economy Recyclable Packaging Material Images
To further enhance resource utilization efficiency Genbyte released the Material Efficiency Improvement and Circular Economy Blister Trays ESD Boxes Transfer Boxes / Totes Cardboard Boxes
Development Plan. This plan outlines specific targets for improving material use and promoting a circular economy incorporating
these goals into the performance evaluation system and linking achievement rates with executive compensation. The Company is
committed to continuously optimizing its circular economy model thereby strengthening its influence and leadership in the field.During the reporting period the Company achieved a 15% improvement in inventory turnover by leveraging inventory
management software. In production employee training and equipment maintenance helped reduce material loss by 10%.Internally dedicated material recycling zones were established resulting in a recyclable material recovery rate of 35%.To improve packaging efficiency meet environmental
requirements and reduce manufacturing costs the
company has switched from using cardboard boxes
die-cut cards and bubble bags to turnover boxes and
blister packaging implementing these changes across
the board. This has effectively enhanced packaging
efficiency and reduced material costs. At the same
time the recyclability of blister packaging materials Before Improvement: After Improvement:
has been increased reducing waste generation and Cardboard boxes + die-cut Turnover boxes + blister trays
minimizing environmental impact achieving a win- cards + bubble bags
win situation for both economic and environmental
benefits.For the next fiscal year the Company plans to:
* Reduce the material loss rate to 13% with a focus on upgrading or replacing outdated equipment;
* Increase inventory turnover to 18% by enhancing market demand forecasting and improving the inventory alert system;
* Raise the recyclable material recovery rate to 45% through the adoption of more advanced recycling equipment and Green Operations Empowerment
expanded employee training on material reuse and recycling.Green Product R&D
Total Packaging Material Genbyte actively responds to the national "dual carbon" policy by incorporating ecological design concepts into the product
Usage tons 1072.95 design phase. The Company prioritizes the use of environmentally friendly materials and energy-saving technologies empowering
Packaging Material products through technology development to create efficient and energy-saving intelligent products that help customers reduce
Consumption Intensity tons per million revenue 0.81 energy consumption and carbon emissions.Paper-Based Packaging
Materials tons 801.24
Paper-Based Packaging tons 195.92 Inverter and Energy Storage Systems Case Materials
Other Packaging Materials tons 75.79
The Company focuses on the R&D and production of battery modules BMS energy storage systems inverter systems
Reused Packaging tons 93.84 and solar energy storage charging systems providing customers with "one-stop" customized and personalized energy Materials storage products either as complete systems or components. These products efficiently convert and store energy
Packaging Material % 98.38 and are widely applied in various scenarios such as homes industrial and commercial parks microgrids data centers Recycling Rate and communication base stations. The application of inverters and energy storage systems helps to improve energy
efficiency reduce dependence on traditional fossil fuels and decrease carbon emissions. Through optimized energy
management these products provide users with cleaner and more reliable energy solutions.
51 52Smart Home Appliance Controllers Green OfficeCase
The Company vigorously promotes green office practices focusing on energy conservation paper reduction and other measures
to comprehensively reduce resource consumption. At the same time the Company conducts energy-saving publicity and education
The Company's smart home appliance controllers are widely used in products such as variable frequency through slogans status boards and training to raise employee awareness of resource conservation making a positive contribution
refrigerators and air conditioners. By precisely controlling the operation of appliances these controllers achieve to environmental protection.energy savings and emission reductions. For instance in variable frequency refrigerators Genbyte's controllers
automatically adjust the compressor's speed according to the temperature changes inside the fridge preventing
unnecessary energy waste. Compared to traditional refrigerators the Company's variable frequency models save For office electricity use employees are required to turn off air conditioning lighting computers
approximately 30% of electricity while reducing carbon emissions. printers water dispensers and other office equipment after working hours.The person in charge of electricity use in office buildings meeting rooms and other areas should
Electricity
Conservation regularly check that devices are turned off when not in use and the administrative department will conduct periodic inspections of electricity consumption.Air conditioning should be installed in shaded areas and sunshades should be added when
possible. In summer the air conditioning temperature should not be set lower than 26° C.New Energy Vehicle Controllers Case Prioritize the use of energy-efficient lighting and make full use of natural light.Promote the use of paperless office systems like OA to reduce paper consumption.The Company holds core advantages in the fields of vehicle refrigerators air conditioners and inverters. These Paper Department heads should educate employees to strictly control paper usage for office devices
controllers precisely regulate the electrical systems of new energy vehicles improving the vehicle's energy Conservation like copiers and fax machines and non-essential documents can be printed double-sided.efficiency. As a low-carbon and environmentally friendly mode of transportation new energy vehicles further Departments should collect paper from the human resources and administrative department
enhance their energy efficiency through the optimization of these controllers. The Company's new energy vehicle monthly and keep records.controllers help reduce energy consumption and exhaust emissions during driving promoting green and low-
carbon travel. Office Supplies The human resources and administrative department will fully record the office supplies used by
Conservation each department and old supplies should be replaced with new ones when necessary.Employees are encouraged to reuse office supplies to reduce waste.When purchasing vehicles or using company vehicles energy-efficient and environmentally
Fuel friendly models should be considered to reduce fuel consumption.Conservation
Green Strategic Development Plan In the event of a power outage using backup generators is prohibited unless absolutely necessary.The Company adheres to the management philosophy of "Green Technology Smart Living" and considers green development as a Green Adopt reasonable transportation methods and advocate for green commuting to reduce the
key strategic direction. The Company has developed the following green strategic development plan: Commuting environmental impact of vehicle fuel consumption.Increase The Company will continue to increase its investment in the research and development of green
Investment in products and technologies drive technological innovation and product upgrades. The plan is to launch
R&D more green products and solutions with independent intellectual property rights in the coming years.In addition to its existing businesses in inverters energy storage systems and smart home appliance Protection of Ecological Diversity
Expand Green
Business Areas controllers the company will actively expand into emerging fields such as green buildings and smart
cities providing customers with more comprehensive green solutions. Genbyte adheres to the United Nations Convention on Biological Diversity and has established a "Biodiversity Management
Procedure" treating the protection of biodiversity as one of its core responsibilities. Before commencing any projects the Company
conducts environmental impact assessments and selects project sites that avoid water source protection zones and ecological red-
The Company will strengthen cooperation with suppliers to jointly promote the construction of a green line areas. The Company regularly monitors and controls wastewater waste gas waste and noise emissions to ensure compliance
Establish a supply chain system. The Company will prioritize the selection of raw materials and components that with pollution discharge standards. Additionally by using environmentally friendly materials optimizing energy efficiency
Green Supply
Chain System meet environmental protection standards ensuring that the entire product lifecycle adheres to green designs reducing the use of harmful substances and promoting a circular economy the Company strives to minimize the negative
and low-carbon requirements. environmental impact of its products.Promote Digital Through digital transformation and smart upgrades the Company will further improve production
Transformation efficiency and energy utilization reducing resource waste and environmental pollution. The Company
and Smart plans to utilize advanced technologies such as big data and AI to optimize production processes and
Upgrades management models achieving green production.
53 54Empowering Innovation
Through Intelligence
57 Technological Innovation Leadership
65 Digital Intelligence Development
66 Enhancing Product Quality
71 Customer Rights Management
73 Data and Privacy Protection
75 Building a Responsible Supply Chain
55 56Technological Innovation Leadership Key Laboratories
Eight Key Laboratories
Safety Laboratory Functional Laboratory Optical Analysis Electromagnetic
Overview of Technological Innovation Laboratory Compatibility Laboratory
Environmental Reliability Laboratory Device Approval Instrument Calibration Genbyte adheres to the development philosophy of "Technology Leads Innovation Drives" and considers technological innovation Laboratory Laboratory Laboratory
as the core driving force of its development. The Company actively expands into fields such as AI inverters and energy storage
providing domestic and international well-known enterprises with comprehensive solutions including smart hardware software
and system control integration. This not only promotes technological progress in the industry but also develops environmentally
Outdoor
friendly products enhancing the company's economic benefits and social responsibility. Medical Power Photovoltaic Inverter Home Electrical Automotive
Electronics Tools Energy and Grid Appliances Appliances Electronics Storage Connection Products
Technological Innovation Governance
Genbyte strictly follows the laws and regulations such as the "Science and Technology Progress Law of the People's Republic Technology Innovation Training
of China" the "Law of the People's Republic of China on Promoting the Transformation of Scientific and Technological
Achievements" and the "Opinions on Strengthening Governance of Science and Technology Ethics." The Company has established
procedures and regulations including the "Design and Development Control Procedure" the "Embedded Software Development Refrigeration System Control Technology Platform Variable Frequency Control Technology Platform
Design Procedure" the "R&D Sample Demand Management Regulations" and the "Full Participation Improvement Management
Norms" to standardize the entire innovation process. It has built an innovation mechanism of "Technology Pre-research Demand-
driven and Platform Support" focusing on creating a product system that is technologically advanced high-end intelligent and High-Voltage Power Supply Technology Platform Eight Intelligent IoT Technology Platform
green-low-carbon. Technology
The Company continues to increase its R&D investment by establishing research centers a Technology Strategy Committee and a General-purpose Visual Inspection Platform Platforms Advanced Battery Management System (ABMS) Technology Platform
Technical Expert Committee forming a technological innovation management structure. Genbyte also actively builds a platform-
based professional autonomous innovation product R&D system with eight key laboratories and eight major technological Energy Storage Technology Platform Micro Inverter Technology Platform
platforms. These initiatives bring together the Company's cutting-edge innovation forces ensuring the Company's sustained
leadership in technological innovation. In addition the Company adheres to ethical standards during the R&D process especially
in sensitive areas such as life sciences and artificial intelligence. It has established an internal technology ethics review mechanism
and training programs to enhance the ethical awareness of its R&D staff ensuring that all R&D activities comply with ethical
standards. Innovation Incentives and Training
As of the end of the reporting period the Company has been honored with multiple awards including "National High-tech
Enterprise" "Autonomous Innovation Benchmark Enterprise" "Top 100 Autonomous Innovation Small and Medium Enterprises" The Company places great importance on enhancing its technological innovation capabilities and encourages participation in
and "High-level Innovation Talent Training Base in Nanshan District Shenzhen." innovation across all levels. Through a well-structured incentive program Genbyte aims to stimulate employees' enthusiasm
for innovation. At the same time the Company focuses on cultivating employees' innovative abilities and awareness by actively
organizing various technology innovation training programs. This creates a positive environment for innovation fostering
employees' creative thinking and enhancing their technical skills.Technology Innovation Training case
In 2024 Genbyte organized training sessions for its R&D
department on various topics including the complete product
design development control procedures battery pack module
design standards for energy storage project management
concepts and implementation product testing issue recording
requirements and engineering change control procedures. The
training lasted a total of 6 hours and had 75 participants.This training through in-depth explanations and promotion
of company policies further ensured the standardization and
normalization of the research and innovation process. It helped
guarantee that the company's research efforts align with the
correct direction effectively promoting technological innovation
and product upgrades.R&D Department Technology Innovation Training
57 58Technology Innovation Strategy Impact of Technological Innovation and Risk & Opportunity
Management
Impact Impact Affected Financial Response Type Description Likelihood Level Time Value Level Impact Measuresframe Chain
Risk Management
Non-compliance
with national or local Increased operating Monitor policy environmental and developments closely and Genbyte has established a comprehensive risk management process to mitigate potential risks in the course of technological Policy
and energy policies could
costs
Short
prevent innovation Opera reduced
adjust project direction in innovation. The Company begins by analyzing internal and external environmental factors identifying possible risks throughout the
a timely manner to ensure
Legal to Mid- tions Low non- alignment with regulatory innovation lifecycle including technical market and policy-related risks. It then evaluates the likelihood of these risks occurring
Risk projects from Term receiving government operating guidance and the severity of their impact to assign appropriate risk levels. Based on this evaluation tailored strategies are developed to
support or lead to income minimize risk exposure thereby ensuring that any potential losses to the Company are kept to a minimum.restrictions
Increased Develop a plan for
Outdated processes operating technological upgrades Industry-Academia-Research Collaboration
or equipment costs and equipment
Tech may result in high Short reduced modernization based on
Risk nology to Mid- Opera Mediumproduction costs non- current capabilities with Upholding a philosophy of openness collaboration and mutual benefit
Risk tions and reduced market Term operating responsible departments Genbyte actively engages in strategic partnerships with academic institutions
competitiveness income implementing effectively like Zhejiang University research institutes and upstream and downstream
players in the industry chain. The Company is building a multi-tiered multi-
dimensional platform for collaboration across industry academia and
Intensified industry research. With the enterprise as the main driver and market needs as the
competition and
rapid technological Short Opera compass this integrated innovation system fosters in-depth cooperation.changes may to Mid- tions Increased Enhance market analysis Genbyte continues to increase its R&D investment leveraging collaborative Market prevent new Term Downs High operating and customer insights and Risk platforms for technical expertise funding and market access. These products from being tream costs respond swiftly to market
quickly accepted changes joint efforts tackle complex technological challenges and accelerate the Industry-Academia-Research
due to performance transformation of scientific research into productive outcomes. Collaboration Partners
issues instability or
customer habits
Tech Introducing
advanced “Advanced Digital-Controlled Bidirectional Inverter Power Supply” Project Case Studynolo Opera Increase R&D investment
gical equipment and Short tions attract and develop high-
Oppor processes can to Mid- Downs Increased Medium level R&D talent and build improve technical Term revenue Genbyte collaborated with Zhejiang University to jointly develop an advanced digital-controlled bidirectional inverter tunity tream an efficient innovation
capabilities reduce system power supply. By combining the university's cutting-edge research capabilities with the company's strong financial
costs and boost and industrial support the project focused on creating a high-efficiency digital power system capable of both forward
competitiveness charging and reverse inverter output. This innovation enables more efficient energy conversion and flexible power
Oppor management marking a significant step forward in advancing energy technology and promoting innovation in the
tunity
The rise of emerging Optimize products and smart energy sector.Market applications such Opera services enhance market
Oppor as AI humanoid Short tions research and strategic
tunity robots and green to Mid- Medium Increased Down partnerships to meet diverse energy is driving Term revenue demands and strengthen
sustained demand stream competitiveness Technological R&D Achievements
for smart hardware
motor drivers and
storage inverters Genbyte has been deeply rooted in the field of intelligent controllers leveraging its strong R&D resources and extensive industry channels to drive technological innovation and contribute to the development of industry standards. The Company played an
active role in formulating the national group standard"General Technical Requirements for Smart Cooking Robot Systems for
Catering Equipment'' (T/ZSA 288—2024) and independently developed several cutting-edge technologies including micro inverters
and tactile sensing technology for robotic skin. These breakthroughs have been widely recognized enhancing the Company's
innovation capabilities and promoting high-quality development across the industry.
59 60In the automotive refrigeration and air conditioning sector the Company has continued to focus on low-power product
development. Its solutions now integrate UDS (Unified Diagnostic Services) for online automotive diagnostics and AES-128 2024 Design and Development Management Indicators
encryption for information security. Covering both aftermarket and OEM applications the Company's platform products have
been widely adopted—for instance by renowned global outdoor brand Dometic and in Xiaomi's new energy flagship SU7 vehicle Indicators Status
refrigerator. With the rapid growth of the NEV (new energy vehicle) market vehicle refrigerators are increasingly becoming standard
in premium models. Genbyte has optimized its electronic control systems to reduce energy consumption and improve affordability Project Development Completion Rate (Automotive) ≥ 98% Achieved
further strengthening its leadership in this field. The Company's innovations have drawn attention from multiple OEMs many of
whom have actively sought out collaboration driving steady growth in the vehicle refrigerator and air conditioning business. Project Development Completion Rate (Non-Automotive) ≥ 98% Achieved
During the reporting period Genbyte launched and successfully commercialized 15 R&D projects. Among them self-developed
technologies such as the "HarmonyOS-Based IoT Refrigerator Control Platform" "Remote-Controlled Lawn Mower Design Based First-Pass Sample Qualification Rate (Automotive) ≥ 96% Achieved
on Hub Motors" and "High-Performance Micro Grid-Tied Inverter for Energy Storage Systems"were awarded at the 23rd Shenzhen
Enterprise Innovation Records. First-Pass Sample Qualification Rate (Non-Automotive) ≥ 96% Achieved
Innovative Lawn Mower Robot Controller case
During the Reporting Period
Leveraging its independent R&D strengths in intelligent
controllers the Company engaged in deep collaborative The Company had a total of 327 R&D R&D investment reached rmb Accounting for 6.15% Of total personnel 86.16 Million revenue
innovation with clients to tackle core technologies of lawn
mower robots facilitating the successful mass production
of innovative lawn mower robots for downstream clients.The product integrates RTK vision and multi-sensor
technologies to achieve combined positioning navigation
and obstacle avoidance intelligent remote control and
automatic grass collection. It has been highly recognized by
consumers overseas.Product Application: Innovative Lawn Mower Robot Intellectual Property Protection
Intellectual Property Management System
Innovative Lawn Mower Robot Controller case
Genbyte places a strong emphasis on intellectual property (IP) protection and strictly complies with the Patent Law of the
People's Republic of China and other relevant regulations. The Company has established policies such as the Intellectual Property
Management Regulations Trade Secret Protection Policy and Intellectual Property Risk Prevention Plan forming a multi-level
In 2024 the Company's self-developed micro inverter product received cross-departmental IP management structure. This system is continuously improved to provide institutional support for effective IP
product certification from TüV Rheinland in Germany covering multiple safety protection.electromagnetic compatibility and grid connection standards including EN The Securities Affairs Department is responsible for overseeing IP matters working in collaboration with external IP agencies and
62109 IEC 62109 EN IEC 61000-6-1 EN IEC 61000-6-3 EN 50549 and VDE 4105. law firms to ensure efficient coordination and comprehensive management.
This series of micro inverters incorporates innovative control algorithms and To encourage innovation the Company has implemented a comprehensive patent incentive policy. This includes rewards for patent
intelligent management software effectively addressing power quality issues in applications substantive examination achievements and granted patents while also linking patents to employee performance
grid-connected applications. It supports low-harmonic power output reactive evaluations professional title assessments and promotions. These measures aim to fully stimulate employees' innovative
power regulation grid dispatch and intelligent energy management. potential and facilitate the transformation of technical achievements into productivity thereby strongly supporting the company's
sustainable development.Micro Inverter
Principles of Intellectual Property Protection Management
Comprehensive Protection: Covers all types of intellectual property including patents
Technological Innovation Indicators and Goals trademarks copyrights and trade secrets.Prevention-Oriented: Focuses on proactive risk assessment and process control to prevent
IP disputes before they arise.Genbyte adopts a market-driven and customer-oriented approach to guide its product design and development. The Company Full Participation: Enhances company-wide awareness through training and promotion of
dynamically adjusts new product development based on its evolving business needs and sets clear performance indicators for intellectual property protection.R&D personnel and departments. By implementing quantifiable R&D metrics and clearly defined responsibilities the Company Legal Compliance: Strictly adheres to domestic and international IP laws and regulations.ensures that its technological innovation progresses in a well-aligned and strategic direction. This approach lays a solid foundation Continuous Improvement: Regularly evaluates the management system to continually
for Genbyte's long-term sustainable development. optimize processes.
61 62Indicators Pre-R&D Search: Conduct comprehensive searches before project initiation to avoid
Total Granted Patents 106 duplicate R&D and infringement.Intellectual Competitor Analysis: Regularly monitor competitors' intellectual property layout to
Among them: - Granted Invention Patents 31 Property Risk identify potential risks.Prevention FTO (Freedom to Operate) Analysis: Conduct FTO analysis before product launch to
System
-Granted Utility Model Patents 59 ensure no infringement of others' rights.Risk Warning System: Establish a warning system to detect and respond to potential
- Granted Design Patents 16 risks promptly.Total Software Copyrights 84
Departmental Cross-Department Collaboration: Ensure intellectual property protection is integrated
Total Trademarks 36 Collaboration throughout the R&D production and sales processes.Mechanism External Cooperation: Establish long-term partnerships with intellectual property
Invention Patents Applied During the Reporting Period 23 agencies law firms etc.Invention Patents Granted During the Reporting Period 5 External Industry Trend Tracking: Regularly monitor trends in intellectual property development
Research and and technological innovation.Industry Trend Policy Research: Conduct in-depth research on domestic and international intellectual
Monitoring property laws regulations and policy changes.Intellectual Property Management Measures
The Company actively conducts intellectual property protection and management work establishing a full-process management Intellectual Seminar Organization: Regularly organize internal seminars and invite external experts
mechanism. It formulates response measures for various stages including R&D application maintenance usage and dispute Property to conduct lectures enhancing protection awareness and capabilities.resolution ensuring the continuous and effective operation of the intellectual property management system. Additionally the Seminars and Systematic Training: Provide basic training to new employees and hold regular Training specialized training sessions covering laws regulations application processes etc.Company has established an intellectual property ledger and annual fee management system embedding intellectual property
protection throughout the entire product development and operation process. With clear and defined systems and management
measures the Company ensures that every step from project initiation to product launch strictly follows intellectual property
protection procedures and standards. Furthermore the company adopts lifecycle management measures protecting its own Incentive Mechanism: Establish a patent reward policy and "Intellectual Property
innovative achievements while respecting others' intellectual property. Other Key Contribution Award" to encourage innovation and risk mitigation by outstanding
Initiatives employees.Compliance Review: Conduct intellectual property compliance reviews before product
launches to ensure legality and compliance.Project Initiation: Clearly define intellectual property ownership and protection scope
and develop a dedicated protection plan.R&D Process: Regularly assess innovative outcomes and apply for patents trademarks
Intellectual etc. in a timely manner.Property Project Completion: Implement comprehensive intellectual property layout for core
technologies to ensure legal protection. Intellectual Property Training Case StudyRegistration and
Filing Global Layout: Conduct international patent applications (PCT) and overseas trademark
registrations.Confidentiality Measures: Implement confidentiality agreements and access control to
prevent information leakage. In 2024 the Company invited external experts to conduct
specialized training sessions on intellectual property. The
training covered fundamental IP knowledge techniques
Timely Registration: Regularly submit technical disclosures to ensure timely protection. for patent research and mining risk prevention strategies
Patent Application: Apply for invention patents utility models or design patents for and an interpretation of the Company's incentive policies.Intellectual valuable technologies. These efforts comprehensively enhanced the Company's
Property Trademark Registration: Timely register new brands logos etc. to protect brand rights. capability and awareness in intellectual property
Application and Copyright Registration: Register copyrights for software code design drawings and other protection.Registration works.Process Intellectual Property Training Trade Secret Filing: Implement confidentiality measures and file for non-public
information.
63 64Digital Intelligence Development Enhancing Product Quality
Digital Intelligence Development Product Quality Governance
With the rapid advancement of technology digitalization and intelligence have become core competitive advantages for Genbyte firmly regards quality management as the cornerstone of sustainable development and is committed to delivering
enterprises. As a practitioner of Industry 4.0 Genbyte anchors its strategy on "data-driven decision-making 5G-enabled excellent safe and reliable products and services to its customers. The Company strictly complies with the Product Quality
manufacturing and intelligent ecosystem optimization" and has built an enterprise information system centered on the integration Law of the People's Republic of China and other relevant regulations adopting the quality policy of "meticulous design strict
of digitalization intelligence and platformization driving continuous improvement in environmental social and governance (ESG) manufacturing environmentally friendly products timely delivery premium service and continuous improvement."
performance. To this end Genbyte has established a comprehensive suite of quality management systems and regulations including the Quality
Manual Product Quality Testing and Control Specifications and New Product Pilot Production Control Procedures. These systems
support a full lifecycle quality management framework that spans R&D production and the supply chain ensuring high product
Digital Development reliability and traceability.Customer needs remain the central focus of Genbyte's quality strategy. The Quality Department leads quality governance efforts
Genbyte actively allocates resources to develop its digital capabilities constructing a high-efficiency production system to support overseeing material and product inspections auditing production processes supervising issue resolution and evaluating
the customized and multi-scenario needs of smart controllers and energy storage products. This is achieved through its integrated product quality controls. While ensuring compliance with fundamental quality standards the Company also focuses on process
digital-intelligent-platformized enterprise information system. optimization and efficient resource use to reduce quality deviations lower production costs and enhance service delivery -all
In operational management the company has invested long-term in building a core digital platform centered on SAP&ERP covering contributing to the continuous improvement of product quality.sales planning procurement logistics and finance. This platform integrates digital applications aligned with business processes Additionally Genbyte actively conducts both internal and external quality audits to ensure full alignment with legal and regulatory
continuously leveraging intelligent technologies to enhance operational efficiency. requirements. As of the end of the reporting period the Company has obtained certifications for ISO 9001 ISO 13485 IATF 16949
In production management the company focuses on platform-based manufacturing and enhancement of core competencies. It and IECQ QC080000 quality management systems and has been certified by TüV Rheinland.integrates digital tools such as MES (Manufacturing Execution System) WMS (Warehouse Management System) and electronic
dashboards to deliver precise and reliable manufacturing services. Genbyte has introduced advanced international automated
production lines (e.g. fully automated SMT machines) enabling visualized standardized and globalized manufacturing while
actively exploring AI and big data applications in production.In product testing the Company has adopted automated testing technologies and equipment and built a collaborative digital
platform that connects MES WMS and SAP systems. Leveraging IoT databases and virtual instrumentation it has integrated in-
house testing systems with automatic inspection equipment pioneering a "cloud testing" model that enables real-time monitoring
and automated management of test data significantly enhancing product stability and delivery efficiency.In R&D management Genbyte has established a full lifecycle PLM (Product Lifecycle Management) platform that standardizes
its R&D processes through formal project management tools. The Company is also actively deploying big data and AI in product
development to improve R&D efficiency and design quality.For office automation and paperless operations Genbyte has implemented travel platforms OA systems and electronic signature
tools. Data analytics are used to gain insights into employee travel habits promoting low-carbon travel and optimizing travel ISO 9001:2015 ISO 13485:2016 IATF 16949:2016 IECQ QC080000:2017
policies to enhance employee experience. The e-signature platform supports fully digital contract management improving (Quality Management System) (Medical Device Quality (Automotive Quality (Hazardous Substance Process
efficiency reducing operational costs and strengthening contract control and risk management. Management System) Management System) Management System)
Intelligent Manufacturing
While advancing its digital transformation Genbyte also focuses on
intelligent manufacturing. By integrating MES systems with AOI and AI
equipment the Company has optimized production processes such as
SMT and DIP. It has addressed challenges in automatic interfacing and
intelligent recognition of solder paste stencils and chip programming.This enables automatic software downloading based on work orders
and full automation of chip programming solder paste printing and
AOI optical inspection. These efforts further the Company's smart
manufacturing goals improving production methods and overall
efficiency. During the reporting period Genbyte achieved the Level 3 Germany Rhein TüV Certification
certification for Intelligent Manufacturing Capability Maturity.
65 66Product Quality Strategy Product Quality Impact Risk and Opportunity Management
Impact Impact Affected Financial Response Type Description Likelihood Time Value Level Measures Risk and Opportunity ManagementLevel Impactframe Chain
Genbyte has established the "Risk and Opportunity Response Control Procedures" and the "Product Risk Control Procedures"
to create a comprehensive process for identifying managing and responding to risks and opportunities. A risk and opportunity
Quality issues during
product development evaluation team has been formed to oversee risk and opportunity management tasks. The Company organizes departments to
may damage Standardize R&D and identify risks and opportunities related to product quality throughout the product lifecycle including legal regulations production
Techni the company’s production processes processes after-sales service inspection results etc. in accordance with the relevant control procedures. These are initially
cal / reputation incur Short to Decrease implement strict quality recorded in the "Risk and Opportunity Analysis and Evaluation Form." At the same time the Company scientifically assesses the Reputa compensation costs Opera Mode controls and establish
tional medium in risk coefficient to determine whether the risk is acceptable and if corresponding measures should be taken. For risks requiring and affect product term tions rate revenue multiple inspection Risk acceptance rates and checkpoints to ensure action the Company prioritizes eliminating the risk and formulates risk response measures which are then implemented by the
delivery. product quality. respective departments and supervised by designated personnel to ensure proper execution and effectiveness. All information is
documented in detail compiled in the "Process Risk and Opportunity Identification and Evaluation Measures Form" and regularly
reviewed to ensure that risk and opportunity identification and response are thorough and effective.Risk
Rising customer Strengthen communication Product Lifecycle Management
expectations for between the Quality
quality standards Department and clients
delivery timelines to align on standards The Company adheres to the requirements of quality management systems such as ISO9001 and IATF16949. During new product
Market and after-sales and testing methods; introduction the overall approach follows the APQP (Advanced Product Quality Planning) timeline management model. Based
Risk services place Short to Down
Decrease Production Department to on the factory's NPI (New Product Introduction) process the product lifecycle mainly involves four modules: product and process
higher demands medium stream High in revenue ensure effective production validation production planning and feedback evaluation and corrective actions. By integrating quality management tools on the company’s term planning and execution; such as MSA (Measurement System Analysis) FMEA (Failure Modes and Effects Analysis) and SPC (Statistical Process Control) the
production Marketing Department to
quality and service enhance client engagement Company incorporates scientifically efficient quality management practices into each module to ensure comprehensive control of
management. and promptly address product quality throughout the entire lifecycle.feedback.Mass Production
National emphasis Concept Project Approval
Sample Pilot
Production Launch
on technological Proposal / Approval
Policy innovation and the
Closely monitor government
policy updates; increase
and digital economy Medium Increase R&D investment and
Planning and Definition
Legal may bring favorable Opera Modepolicies such as to long
in non- innovation efforts to gain
Oppor tions rate operating
Planning and Definition Documents / Processes
1.
tunity tax reductions or
term access to preferential
income policies and strengthen 2. NPI Operation Guidelines subsidies. NPI Introduction Risk competitive edge. Product Design and Development 3. Assessment Checklist
4. NPI Pilot Run Issue List
Pilot-to-Mass Production
5. Review Form
Oppor Process Design and Development 6. MSA Plan
tunity 7. SPC Plan
8. FMEA/QCP – FMEA / QCP The rapid growth Product and Process Validation Performance Test Report
of the new energy (Test Coverage)
vehicle industry Stay closely aligned
opens up a large with market demand Product and Process Validation
market for PCBA Increase Market Medium Down Mode and proactively develop in
Oppor manufacturers customized PCBA solutions Feedback Evaluation and Corrective Actions
tunity reducing competitive
to long stream rate revenue
term to gain a competitive pressure and edge through service and
increasing profit technology.potential. Planning and Product Design Process Design Product and Feedback
Project Definition and Development and Development Process Validation Evaluation and
Verification Verification Corrective
Factory manufacturing quality management primarily focuses on "new" and "change." The standardization of the NPI (New
Product Introduction) process and the rational layout of quality control points are key to effectively managing manufacturing
quality and preventing issues such as batch problems and customer complaints.
67 68Department 1: Preparation Stage 2: Pilot Production Stage 3: Mass Production Stage 4: Transfer / Product Transition Stage During the Reporting Period
Cycle 3–7 days 7–25 days First 3 months 3–7 days
The Company conducted 54 quality With 1952 employees A total training duration of 3904
training sessions participations hours
Business Quotation Approval
Cost Code Risk Resource Develop Pilot
Project Assessment Analysis Creation Production Plan Baseline Allocation
Optimization Adjustment
Planning Develop Production
Update
Scheduling Plan Reverse Repair Capability Matrix
Process Quality Abnormality Management Procedures Training Case Study
Change
DCC Document Change Confirmation
Download Confirmation and
Archive Idle
and Review Review Documentation
BOM & In 2024 the Company organized training on the process
Document
PIE / Drawing Interpretation SOP Tooling
Optimization Poka-Yoke
Preparation quality abnormality management procedures for Review
Equipment Acceptance
of Tooling Design for Scrap Scrap
Tooling Risk and Solder Manufacturing Idle Tooling Idle SOPs personnel from the Quality Department including those
Preparation Assessment Capability Validation
Stencil involved in SMT DIP and QC. Through the dissemination Meeting
Mass Optimization Void and explanation of the related management procedures
QE SOP Quality
SOP Pilot
Preparation Review and Production Production of Mass Target Setting Idle Work the training further strengthened the quality professional Optimization Summary Readiness Production
Review Review Baseline Instructions skills of the Quality Department staff and promoted
the continuous improvement of the Company's quality
SOP on-
Production Pilot site rotation Production Daily QRQC standards.reading Issue Log
Return Idle Process Quality Abnormality Management
Test Fixture Equipment Procedures Training
Testing Preparation Test Software Maintenance Poka-Yoke Capability
Test Coverage Non-Key Key Certification Assessment
Rate Control Point Control Point
Product Process Quality Management
The Company has established product process management systems including the "HSF Management Control Procedures"
"Corrective and Preventive Actions Control Procedures" "Non-Conforming Product Control Procedures" and "Continuous
Improvement Control Procedures" to continually enhance product process quality management and improve product and service
quality as well as production efficiency.During the incoming material phase the Company implements a multi-stage rigorous inspection process through SAP inspection
MRB review and IQC inspection. Only after passing these checks can materials be stored with rules for tightening relaxing or
normal sampling transitions in place to ensure the quality of raw materials.In the product manufacturing phase the Company follows documents such as the "QA Inspection Work Guidelines" "Operating
Instructions" and "BOM" to standardize the SMT and DIP processes. Key processes such as solder paste/red glue printing Post-Process Completion Training ESD (Electrostatic Discharge) Professional
mounting welding and component insertion are specifically inspected. After product production is completed random
inspections are conducted and the results are detailed in documents like the "QC Daily Inspection Report" "Material Abnormality
Handling Form" and "Inspection Request Form." This comprehensive and detailed management process ensures high-quality
products for customers.In the product testing phase the Company has developed an intelligent production inspection system transitioning from manual
to automated intelligent quality detection. This improves both inspection accuracy and efficiency while reducing labor costs.Furthermore product testing data is automatically collected uploaded in real-time and supports remote monitoring and backend
data storage and analysis. This system enables full lifecycle quality traceability for different products helping the Company identify
potential manufacturing issues and optimize product manufacturing processes.Product Quality Training
Genbyte places great emphasis on cultivating employees' quality awareness and capabilities. The Company conducts extensive
training for frontline employees in areas such as SMT DIP and QC organizing assessments to ensure the effectiveness of the
training. This aims to enhance employees' professional skills and ensure that their quality capabilities develop in line with the
Company's growth laying a solid foundation for the Company's long-term development. AQL Sampling Inspection Training 7S Management Knowledge Training
69 70Product Quality Metrics and Goals
Customer Receive Customer Establish Customer 8D Review Implement Temporary
Genbyte has established annual product quality goals and set up multidimensional management metrics to comprehensively Complaint Complaint Complaint History Meeting Countermeasures
enhance the visibility of quality management. Quantitative data strongly supports the Company's quality development path with
responsibilities assigned to individuals. Quality goal progress is tracked monthly or quarterly to ensure continuous and sustained NG
high-level improvement in quality management. OK
During the reporting period the Company did not experience any major product quality incidents. Implement Confirm Improvement Finalize the 8D
Corrective Actions Effectiveness Report
2024 Product Monitoring and Measurement Management Process Goals
8D Issue the 8D Track Close and End Close and End
Review Report Improvements Customer Complaint Customer Complaint
Metric Achievement Status
Incoming material inspection batch pass rate ≥ 99.5% Achieved Customer Complaint Handling Workflow
Incoming material HSF pass rate 100% Achieved
SMT/AOI inspection pass rate ≥ 99.7% Achieved
During the Reporting Period
Throughput rate ≥ 98% Achieved
The Company received 8 customer complaints With a 100% resolution rate for all complaints
Shipment random inspection pass rate (non-medical products) ≥ 99% Achieved
Shipment random inspection pass rate (medical products) 100% Achieved
No incidents of hazardous substance content exceeding standards Achieved
Customer Satisfaction
The Company actively conducts customer satisfaction surveys and
has developed the Customer Satisfaction Survey Control Procedure.Various methods including visits questionnaires and letters are used During the Reporting Period
Customer Rights Management to continuously collect and record customer feedback. The data is then categorized compiled and summarized annually in the Customer The Company's customer satisfaction score was
Satisfaction Analysis Report which is reviewed in the Company's
management review meeting. The Quality Department's CQE team
Customer Rights Protection analyzes and evaluates the satisfaction data promptly identifying the causes of any customer dissatisfaction and developing corresponding
measures to ensure continuous improvement in the customer service
Genbyte strictly complies with laws and regulations such as the Consumer Rights Protection Law of the People's Republic of experience.China and the Product Quality Law of the People's Republic of China. The Company fully respects and protects customers' legal
rights and interests. Genbyte has developed systems such as the Customer Requirements and Order Contract Review Control
Procedure and the Customer Supplier Property Control Procedure. Centering on customer needs the Company has established
a comprehensive customer service system that covers after-sales service complaint handling and customer satisfaction surveys. The Company's customer satisfaction score was
This system ensures the protection of product quality provides high-quality solutions and continuously enhances the customer
service experience. The Company continuously improves the after-sales customer experience
and has established the Advisory and Adverse Event Notification Procedure
which defines the responsibilities of each department and personnel.Complaints and After-Sales Service For products already delivered the Company closely monitors customer
feedback complaints returns and other issues. Following the principle of During the Reporting Period
To effectively address customer dissatisfaction and complaints about products the Company has developed the Customer immediate reporting adverse events are promptly reported. The Quality The Company did not experience any
Complaint Handling Procedure and the Customer Return Handling Control Procedure. A complete customer complaint handling Department investigates the cause of the incident creates a written report incidents that required the recall or
process and time limits have been set to ensure timely resolution of customer feedback. Upon receiving a complaint the Quality and determines based on the severity of the event whether to issue withdrawal of products due to health
Department's customer service engineer records the specific details of the complaint and enters them into the customer complaint an advisory notice or take corrective actions such as inspection repair and safety issues.history. Depending on the nature of the product issue relevant departments collaborate to analyze the cause and propose replacement warnings recall or on-site destruction. These measures
improvement measures. The Company promptly responds to the customer and continuously tracks the progress of improvements. ensure that losses to both the customer and the Company are minimized. If
The complaint is only closed once the effectiveness of the improvement measures is confirmed ensuring that the issue is the incident is due to technical issues related to product characteristics or
thoroughly resolved. performance the Company will recall all similar products.
71 72Responsible Marketing Data Security Management Measures
The Company continuously improves the after-sales customer experience and has established the Advisory and Adverse Event
Notification Procedure which defines the responsibilities of each department and personnel. For products already delivered To ensure effective data security control the Company conducts annual internal audits focused on data security integrity
the Company closely monitors customer feedback complaints returns and other issues. Following the principle of immediate authorization processes and compliance. This ensures that the company's information security management is lawful and
reporting adverse events are promptly reported. The Quality Department investigates the cause of the incident creates a written compliant. Various effective measures are implemented to safeguard the baseline of data security. During the reporting period the
report and determines based on the severity of the event whether to issue an advisory notice or take corrective actions such as Company conducted a data security audit and all identified issues have been rectified.inspection repair replacement warnings recall or on-site destruction. These measures ensure that losses to both the customer
and the Company are minimized. If the incident is due to technical issues related to product characteristics or performance the Management Measures
Company will recall all similar products.Policy and The Company reviews existing data security and privacy protection policies quarterly continuously improving data security operation guidelines and other relevant policies to
Regulations ensure their effectiveness and adaptability.Data and Privacy Protection The Company enforces strict identity verification and access control authorization Technical encrypts data updates and maintains firewalls and intrusion detection systems monthly
Protection and conducts comprehensive network security vulnerability scans and penetration tests quarterly to ensure normal operation of information security defenses.Information Security Management System
Personnel The Company actively organizes data security and privacy protection training strictly
Genbyte strictly adheres to the Cybersecurity Law of the People's Republic of China and other relevant laws and regulations. The Management reviews personnel in key positions and implements a regular job rotation system to reduce information security risks posed by human factors.Company has developed internal systems such as the Information Security Management System IT Internal Management System
Firewall Operation Management System and Data Security and Customer Privacy Protection System to ensure the confidentiality Security Monitoring
integrity and availability of the Company's information assets effectively preventing and responding to various information The Company actively organizes data security and privacy protection training strictly reviews personnel in key positions and implements a regular job rotation system to reduce
security threats and risks. The Company has established an Information Security Management Committee to oversee information and Emergency information security risks posed by human factors.security efforts supported by functional units such as the Information Security Office Information Security Operations Team Response
and Information Security Technology Team. This multi-tiered information security management structure clearly defines the
responsibilities of each unit. Through regular evaluations of information security risks and the current state of information security
the Company continuously improves its information security levels ensuring the implementation of information security policies
and standards. Additionally the Company has set clear short- medium- and long-term information security and customer privacy
protection goals carefully planning the future development to promote steady progress in information security. Information Security Compliance Training Case Study
The Company regularly organizes training on information security management standards combining online and
Information Security Management Organizational Structure offline methods to explain the basics of information security interpret company policies and analyze case studies. This helps strengthen employees' daily awareness of prevention and risk response capabilities.InforImnfaotriomnaCo mS
tieocnu Smitr
ecurity
tietey Committee
Information Security
Office
Information Security Compliance Training
Information Security Information Security Information Security Information Security
Operations & Maintenance Team Technology Team Audit Team Emergency Response Team
73 74Customer Privacy Protection After initially screening suppliers that meet the criteria the Company organizes a supplier
assessment team to conduct on-site inspections of the supplier's quality system RoHS management
Genbyte places high importance on customer privacy protection and has developed policies such as the "Data Security and system production capabilities etc. and fills out the "Supplier Evaluation Form" and "Supplier
Customer Privacy Protection System" and "Privacy and Confidentiality Control Procedures." The Company has established an Supplier RoHS Form." Upon passing the inspection suppliers undergo sample certification and small batch
overarching goal to "build a comprehensive data security and customer privacy protection system ensuring the confidentiality Introduction procurement certification further assessing their technical capabilities. Based on the certification
integrity and availability of customer information enhancing customer satisfaction and trust and maintaining the Company's results and the supplier's characteristics the Company decides whether a second on-site audit is
reputation and sustainable development." This goal is further broken down into three specific objectives to ensure proper direction necessary. Relevant information on approved suppliers is then compiled and archived officially
for privacy protection efforts. adding them to the Company's qualified supplier list.The Company respects the customers' right to know and make choices. It provides privacy policy pages and other means for
customers to understand the collection use storage and sharing of their personal information. For the collected customer
data the Company implements strict measures such as data encryption setting up dedicated data storage centers regular data The Company has developed the "Supplier Evaluation Management Measures" to standardize
backups and periodic security evaluations to ensure customer privacy is protected from leakage. Additionally the Company supplier evaluation activities. Performance is assessed across four dimensions: quality delivery
actively identifies risks related to data security and customer privacy protection creating a risk-opportunity identification and cost and service. Supplier performance is evaluated dynamically through monthly quarterly and
assessment list to effectively control the risks of data breaches and privacy leaks. Moreover the Company includes data security Supplier annual assessments using methods such as online surveys self-assessment reviews and on-site
and customer privacy protection in its employee performance assessment system and rewards or penalizes employees based on Evaluation evaluations. The Company follows a comprehensive supply chain lifecycle management system
their performance. with clear regulations for the introduction review evaluation and elimination of suppliers. This
During the reporting period the Company did not experience any incidents of customer information leakage. ensures a "honest trustworthy mutually beneficial" approach creating a harmonious and fair
business environment for supplier partners.Specific Goals for Data Security and Customer Privacy Protection Based on evaluation results suppliers are classified into five levels: Key Qualified Trial Under
Evaluation and Restricted. Each classification is given different business opportunities. Suppliers
Data Security Establish and improve data security management systems and processes strictly control Supplier that have cooperated for more than three years with an average performance evaluation of "A" for
Management Goal: the collection storage use transmission and sharing of data to ensure its security and Classification more than three consecutive quarters possess leading technical capabilities and market position
compliance. match the Company's customer base and demonstrate strong cooperation willingness may be
approved by the company as key suppliers. These suppliers will have the opportunity to work on
Customer Privacy Strictly protect customer personal information preventing leakage misuse or tampering both new and existing projects.Protection Goal: with customer data ensuring customers' privacy rights are not infringed upon.Suppliers who face delivery or business issues undergo procurement strategy changes or fail to
Risk Control Goal: Establish and improve data security management systems and processes strictly control meet the company's requirements in delivery service cost quality or technology or show no
the collection storage use transmission and sharing of data to ensure its security and willingness to cooperate may be adjusted to restricted status through Company approval. The
compliance. Supplier Exit Company will stop engaging with these suppliers for both new and existing projects and update
the Company system accordingly to prevent other departments from mistakenly activating them
ensuring continuous optimization of the supply chain.The Company deeply understands the importance of supply chain management for sustainable development and actively
Building a Responsible Supply Chain participates in SMETA audits. Based on audit results the Company continuously improves its management effectiveness in areas such as labor rights health and safety environment and business ethics. Through these actions the Company practices
sustainable supply chain management and creates a harmonious and fair business environment for its supplier partners. The
Company is committed to helping suppliers enhance product quality and service standards. Through training and coaching the
Company grows together with its suppliers to overcome challenges in the market environment.Supply Chain Governance
Genbyte is committed to building a responsible supply chain management system strictly adhering to national laws and Supply Chain Strategy
regulations. The Company has developed various policies including the "Supplier Control Procedures" "Supplier Evaluation
Management Measures" "Contract Management Measures" and "Supplier Classification and Grading Management" to regulate
supplier development certification evaluation assessment and approval processes. Additionally a "Qualified Supplier List" Impact Impact Affected Financial Response
is compiled and suppliers are evaluated monthly or annually on criteria such as supply quality product cycle and cooperation Type Description Likelihood Level Time Value Level Impact Measures
to ensure their production capacity and services meet the company's development needs. The Company establishes and frame Chain
improves supply chain lifecycle management with clear regulations on the introduction review evaluation and elimination of
suppliers striving to create a "honest trustworthy mutually beneficial" environment and building a harmonious and fair business Provide guidance and training Regulatory Risk: to external suppliers; build a
environment for supplier partners. Changes or updates Increase mutually beneficial sustainable
in policies and
Regula Medium Upstream in non- environment; ensure timely
Risk regulations may tory 4 4 to Long Opera High operating submission of environmental restrict production
Risk Term tions expenses reports; assign dedicated activities or lead to internal personnel to manage
penalties. and ensure compliance with
regulatory standards.
75 76Impact Affected Financial Response Genbyte actively enhances its risk and opportunity identification and control in supply chain management adopting
Type Description Likelihood Impact Level Time Value Level Impact Measures a cautious and meticulous approach to ensure that the risks in the supply chain are manageable. frame Chain
For the identified risks and opportunities the Company uses scientific and objective evaluation methods to assess
Strengthen diversified their likelihood and the potential harm they could cause quantifying the risk and opportunity levels.supply chain management Based on the level of risks and opportunities the Company formulates corresponding management measures to
and expand quality supplier minimize or eliminate the impact of risks on the supply chain and seize opportunities supporting the Company's
resources; enhance ESG
Variations in supply audits and dynamic steady development.Raw and price fluctuations Decrease assessments of suppliers Mate of key raw materials Short Upstream High to ensure compliance and
Risk rial coupled with supply Term
in
stability; engage in joint R&D
Supply shortages may delay revenue with key suppliers (accounting
Risk timely delivery. for 70% of procurement) sign Integrity Procurement
long-term agreements and
develop annual purchasing To strictly control the procurement process and standardize procedures
plans and safety stock the Company takes a firm stance against fraud and unethical practices
strategies to improve supply creating a fair and just business environment. The Company issued a
chain resilience. notice on anti-fraud disciplinary supervision and reporting and signed During the Reporting Period
Integrity Commitment Letters and Integrity Agreements with employees
and suppliers prohibiting related personnel from soliciting or accepting 100% of suppliers signed the
bribes or kickbacks from suppliers or third parties or engaging in unrelated
Policy and Legal Integrity Agreement
Policy Opportunity:
Stay abreast of national economic transactions with third-party units or individuals. To ensure the
Adapting to and local policy updates; implementation of these measures the Company has set up reporting and
Legal regulatory changes Medium
Increase require suppliers to Opera
by adjusting raw to Long High in adopt biodegradable
channels such as a hotline and email with the audit department handling
Oppor tions and recyclable materials; and investigating the reports. The Company also offers cash rewards and
tunity material and product Term
revenue
expand market outreach protection for whistleblowers encouraging employees to participate in structures may
attract new potential efforts. internal supervision.customers.Oppor
tunity Promote integrated Digital Supply Chain
Partnership strategies to maintain
Opportunity: Long- strong supply chain The Company has introduced an SRM system to drive the digital and intelligent development of supply chain management
term collaboration relationships; form facilitating the creation of a transparent and efficient supply chain ecosystem in collaboration with suppliers. This ensures the
Partne with high-quality Medium Upstream Reduction strategic alliances and Mode in non- sign agreements on timeliness and accuracy of information sharing improving transparency and collaboration efficiency. Additionally the Company rship suppliers can foster to Long Opera
Oppor rate operating supply quality and actively conducts supply chain-related training to enhance employees' professional skills and competencies.trust reduce early- Term tions
tunity stage development expenses business ethics; ensure
and coordination open communication
costs and lower and support supplier
overall expenditure. development to enhance
management capabilities SRM System Training Case Study
and reduce costs.In 2024 the Company organized SRM system training for the
procurement department staff covering the full operational
workflow of the SRM system. The training included modules
such as supplier onboarding contract management price
management order collaboration information updates supplier
grading and supplier qualification reviews. The goal was to
ensure that the procurement team acquires the necessary skills to
Supply Chain Impact Risk and Opportunity Management operate digital systems effectively.In parallel the training incorporated materials from the course
"Procurement Professional Skills Training and Enhancement"
aimed at standardizing procurement processes enhancing
Risk Management procurement capability and professionalism and supporting
strategic cost analysis and control. This initiative further SRM System Training in Progress
Genbyte actively enhances its risk and opportunity identification and control in supply chain management adopting a cautious accelerated the Company's progress toward digitalized supply
and meticulous approach to ensure that the risks in the supply chain are manageable. chain management.
77 78During the Reporting Period Equal Treatment of SMEs
Total suppliers The Company firmly upholds the principles of fairness equity and openness offering equal development opportunities and
cooperation platforms to all enterprises regardless of size. Genbyte actively works to eliminate barriers ensure transparent
procurement processes and create a level playing field for small and medium-sized enterprises (SMEs) to access the supply chain.This commitment helps foster mutual growth in a competitive market environment.Suppliers certified with a quality management system
Suppliers certified with a quality management system
Suppliers certified with an occupational health and
safety management system
Supplier ESG Training
Supplier ESG Management
Guangdong Province
Jiangsu Province
Zhejiang Province
Shanghai Municipality
Hong Kong Special
Administrative Region
Fujian Province
Jiangxi Province During the Reporting Period
Hunan Province
Beijing Municipality
Sichuan Province
The Company had no overdue payments to SMEs
Anhui Province
Shandong Province
Guangxi Zhuang
Autonomous Region
Hubei Province
Taiwan Region
Chongqing Municipality
Tianjin Municipality
Shaanxi Province
Overseas Regions
79 80Building
a Better Future together
83 Labor Relations Management
89 Optimizing the Talent Team
91 Safe and Healthy Production
96 Public Wefare Cmmitment
81 82Labor Relations Management During the reporting period
The Company achieved a 100% With a total of 2259
labor contract signing rate employees
Talent Recruitment Management
Compliance in Employment Of whom 332 are from minority
ethnic groups Including 1156 females
Genbyte strictly adheres to the Labor Law of the People's Republic of China and other relevant laws and human rights standards.Upholding the recruitment principle of "comprehensive evaluation selective recruitment and merit-based hiring" the Company
has established various recruitment and management systems including the Company Regulations Employee Recruitment
Management Procedures Employee Code of Conduct Employee Handbook and Human Resources Control Procedures. These
systems ensure that the recruitment process is fair just and transparent while firmly opposing any form of discrimination Genbyte's Diversity Communication
providing equal work opportunities for all employees.The Company respects the rights of every employee ensuring that each individual signs a formal labor contract before starting
work clearly outlining both parties' rights and responsibilities to protect employees' legitimate rights and interests.The Company adheres to a diversified recruitment strategy offering full support and care to job seekers including veterans
individuals with disabilities and women. By utilizing various recruitment methods such as social recruitment campus recruitment
and job advertisements the Company broadens its talent selection scope attracting outstanding individuals. The goal is to create
a harmonious positive and forward-looking work environment advancing together with employees to create a brighter future.Employees Employees Employees
Classified by Classified by Classified by
Gender Age Education Level
Male Female Below 30 Years Old 30 (inclusive) to 40 Below Associate Associate DegreeYears Old Degree
40 (inclusive) to 50 Above 50 Years Old Bachelor's Degree Master's Degree and
Years Old Above
Compensation and Benefits
Genbyte Campus Recruitment
Compensation Management
Diversity Management Genbyte follows the principle of "distribution based on labor equal pay for equal work" and has established policies such as the
"Employee Salary Management System" and "Compensation and Benefits Management Procedures" to regulate compensation
Genbyte adheres to the principles of fairness diversity and inclusivity practicing equal pay for equal work and non-discriminatory and labor relations management. The Company ensures employees' interests are safeguarded by implementing a monthly
employment. The Company has established policies such as the "Disabled Persons Management Procedure" "Anti-Discrimination salary system with a flexible pay structure that includes basic salary performance bonuses overtime pay and allowances. This
Control Procedure" "Anti-Harassment and Abuse Control Procedure" and "Prohibition of Forced and Compulsory Labor Control structure aims to fully stimulate employees' enthusiasm and creativity. Additionally Genbyte has developed a "Performance
Procedure" which clearly state that no employee should be discriminated against based on gender age ethnicity race skin color Evaluation Control Procedure" establishing a comprehensive performance appraisal system. Regular assessments of employees'
marital status religious belief or other factors in areas such as recruitment promotion or compensation. The Company firmly work performance contributions and teamwork abilities ensure fairness and transparency in salary distribution. A performance
opposes any form of discrimination harassment forced labor child labor or improper behavior and actively protects employees' feedback and appeal mechanism is also in place allowing employees to submit concerns or suggestions to leadership in writing.legitimate rights and interests. Genbyte has also developed procedures such as the "Prohibition of Child Labor and Remediation
Control Procedure" and "Minor Protection Control Procedure" implementing age verification mechanisms during the recruitment
process to identify and internally review child labor strictly prohibiting the hiring of minors. Additionally the Company has
formulated the "Freedom of Association and Collective Bargaining Control Procedure" and the "Religious Belief Management
Procedure" respecting employees' right to freely associate in lawful and peaceful ways. The Company encourages mutual
understanding and communication among employees from different ethnicities regions and cultural backgrounds and actively
promotes cross-cultural training language learning and psychological support to foster better understanding and adaptation
among employees from diverse cultural backgrounds.
83 84Employee Incentives Employee Appeal Channels
Genbyte has developed a "2024 Restricted Stock Incentive Plan (Draft)" to implement a restricted stock incentive program. The plan The Company has set up suggestion boxes to collect various employee suggestions and report
specifies the scope of participants grant quantities and grant prices to ensure fairness reasonableness and effectiveness of the unreasonable phenomena.incentives. By granting restricted stock to employees the Company seeks to inspire their enthusiasm and creativity encouraging Employees can also express their concerns through employee representatives or directly to upper
long-term service and contributing to the Company's sustainable development. management participating in democratic management to protect workers' legal rights and
engage in equal negotiations with the department.Benefits and Welfare
Genbyte str ictly fol lows national regulations Genyte Employee Appeal Process
as outlined in its "Compensation and Benefits
Management Procedures" and "Company Regulations"
to manage employee benefits. The company provides
paid leave including statutory holidays annual leave Suggestion Box
marriage leave maternity leave and bereavement Discuss Report Results
leave continually improving employee satisfaction Employee Feedback Factory Suggestions and Management Management Measures and and loyalty and enhancing the Company's cohesion Grievances Personnel Committee Assign Dedicated Respond to
and market competitiveness. Genbyte also adheres to Follow-up Employees
an 8-hour workday and compensates employees for Employee
overtime work. Additionally the Company organizes Representatives
a variety of cultural and sports activities to promote
employees' happiness sense of belonging and overall
satisfaction.During the reporting period
During the reporting period The Company did not receive any employee
complaints
With an average of 7 days of paid annual leave per A total of 816 employees joined the union
employee
Representing 36.12% Of the total workforce
Vietnam Branch Union Recognition Certificate
Democratic Management and Communication Employee Representative Training Case
I n 2 0 2 4 G e n by te o rga n i ze d a n e m p l oye e
Democratic Management representative training event. The Company
actively promoted employee communication
Genbyte places great emphasis on democratic management strictly adhering to the "Labor Union Law of the People's Republic of channels by educating employees on social
China" and other relevant laws and regulations. The Company has developed the "Employee Representative Election Management responsibility union management rules and
Procedure" and through organizing employee representative meetings and establishing union organizations strictly regulates complaint handling processes. This initiative
the processes of democratic management and oversight ensuring that employees fully exercise their rights to participate express aimed to enhance the Company's democratic
opinions and supervise. In addition the Company has formulated regulations such as the "Employee Complaint Management management level and build harmonious and
Guidelines" "Employee Suggestions and Feedback Handling Procedure" and "Suggestion Box Usage Management Regulations" stable labor relations. Employee Representative Training Onsite
to standardize the management of feedback and create an open management atmosphere enabling timely identification and
resolution of issues thus further enhancing the company's cohesion.
85 86Employee Satisfaction During the reporting period
Genbyte regards employee satisfaction as a key indicator of effective corporate management. The Company has established an Female managers accounted for 2% of 20 employees took maternity leave Maternity return-to-work rate
Employee Satisfaction Survey Control Procedure and regularly conducts satisfaction assessments through questionnaires forums management roles
and other channels to gather employee feedback and understand their needs and expectations. Based on survey results the
Company actively implements improvements to address issues and enhance both the work environment and benefits. In addition
Genbyte has put in place a Labor Dispute and Social Security Responsibility Management Plan and a Long-Term Protection Plan for
Employees Involved in Labor Disputes ensuring fair and timely handling of disputes.Employee Care Initiatives
During the reporting period
Genbyte upholds a "people-oriented" philosophy placing strong emphasis on employees' physical and mental well-being as well
Employee satisfaction rate Four labor disputes resolved amicably through negotiation as their quality of life. To foster a greater sense of unity belonging and happiness among staff the Company regularly organizes a
variety of engaging employee activities. In addition Genbyte has implemented a range of support measures for employees facing
hardships and for those entering retirement ensuring that care and support are provided throughout every stage of an employee's
career."Full Moon Full Affection – A Mid-Autumn Celebration" Case Study
Protection of Women’s Rights In 2024 Genbyte organized a
special themed event titled "Full
Genbyte actively promotes gender equality and equal pay for equal work striving to create a safe respectful and equitable Moon Ful l Af fect ion – A Mid-
workplace for female employees. In compliance with the Law on the Protection of Women's Rights and Interests of the People's Autumn Celebration." The event
Republic of China the Company has implemented policies such as the Special Protection Procedure for Pregnant Maternity a imed to promote tradit ional
and Nursing Women ensuring full protection of health and leave rights during pregnancy childbirth and breastfeeding periods. Chinese culture create a festive
Genbyte also organizes regular care initiatives for female employees to support their physical and mental well-being and foster a a t m o s p h e r e a n d e n r i c h t h e
warm and inclusive atmosphere. cultural life of employees through
meaningful holiday activities. Mid-Autumn Festival Celebration
International Women's Day Event Case
"United in Fun Stronger Together" Sports Day Case Study
During the reporting period Genbyte celebrated International Women's Day with a range of activities including
health talks and special holiday benefits recognizing the contributions of female employees and strengthening
team cohesion.In 2024 the Vietnam subsidiary hosted a themed sports event titled "United in Fun Stronger Together." The event
featured a variety of entertaining and engaging games aimed at improving employees' physical fitness fostering a
strong sense of teamwork and encouraging open communication and camaraderie among colleagues.International Women's Day Celebration Activities
Vietnam Subsidiary Sports Day
87 88"Soaring with the Dragon Advancing with Momentum" Annual Staff Gala and Internal Trainer Mechanism
25th Anniversary Celebration Case
Genbyte values the cultivation and selection of internal trainers encouraging senior employees to become internal trainers to
share their professional knowledge and work experience. The Company aims to build a high-quality professional internal trainer
To strengthen organizational culture and enhance team performance the Company hosted a grand annual staff team. The internal trainer mechanism helps new employees integrate into the work environment quickly and enhance their
gala and 25th anniversary celebration under the theme "Soaring with the Dragon Advancing with Momentum." business skills while fostering the inheritance of internal experience and knowledge sharing creating a positive and proactive
Centered around the " Dual-Engine Strategy" the events were designed with a systematic cross-departmental learning atmosphere. Additionally the Company regularly organizes internal trainer training and exchange activities to enhance
approach to foster collaboration. Immersive and interactive experiences empowered participants throughout the the trainers' teaching abilities and professional skills ensuring the effectiveness of the training programs.process establishing a virtuous cycle of "co-creating culture co-elevating capabilities and sharing value."
Training Evaluation and Assessment
Genbyte has established a comprehensive training evaluation and assessment mechanism to maximize the effectiveness of
training. The Company uses oral exams practical assessments written tests and other evaluation methods to regularly assess the
results of employee training understanding their gains and areas for improvement. Based on this feedback the training content
and methods are adjusted to better meet employees' actual needs.Employee Training Programs
Genbyte has designed targeted training programs for employees at different positions and levels including onboarding training for
new employees and professional skills training to comprehensively improve their professional and overall abilities. New employee
onboarding training focuses on helping new employees quickly integrate into the Company culture understand Company rules
and regulations and master essential job skills. Professional skills training is tailored to the needs of different positions offering in-
depth business knowledge and practical skills to improve employees' professional standards. Through these training programs the
Company effectively enhances employees' work efficiency and quality stimulates their innovative spirit and teamwork awareness
and lays a solid talent foundation for the Company's long-term development.During the reporting period
The company invested a total of rmb Conducted 75 training sessions With 1480 participants in total
504100 in employee training
2024 Annual Gala
2025 Anniversary Celebration RMB
The total training duration reached Achieving a training coverage With each employee receiving an
3842 hours rate of 89% average of 2.31 hours of training
Optimizing the Talent Pool
Employee Training System
Training Management System
Genbyte is committed to building a scientific and comprehensive employee training system to enhance employees' professional
skills and overall qualities. The Company understands the importance of training for both individual growth and business
development and has formulated and implemented the "Employee Training and Career Development Management Procedures"
"Competence Awareness and Training Control Procedures" and other training management systems to ensure the training
process is well-organized and evidence-based. The Company focuses on integrating business needs with employees' personal
development goals. Training content includes onboarding for new employees job skill training and professional development
aimed at improving employees' business capabilities and professional ethics.New Employee Training
89 90Employee Promotion
Genbyte has established management systems such as the Employee Training and Career Development Management Procedure
to define clear processes and standards for employee promotion. These systems aim to regulate career development practices
and ensure that every employee has equal and fair opportunities for advancement. Additionally the Company has formulated
an Internal Job Posting Policy to continuously enhance employees’ personal qualities and skills maximize their initiative and
creativity and standardize the selection and transfer of personnel within the organization.Talent Development Pathway
Occupational Disease Prevention
Awareness and Training Occupational Hazard Notification Card
Professional Track Management Track
Deputy General
Level 6 Senior Expert Manager
Level 5 Expert Department Director Safety Production Management
Level 4 Senior Engineer / Senior Specialist Department Manager Genbyte complies with the Production Safety Law of the People's Republic of China and other relevant laws and regulations and
Intermediate Engineer / has established safety management systems such as the Safety Protection Management Procedure EHS Management Procedure Level 3 Department SupervisorIntermediate Specialist and Safety Production Operation Control Procedure to ensure effective control of safety risks during production. The Company
Level 2 Junior Engineer / Junior Specialist has implemented a safety production responsibility system and established a safety management organizational structure clearly
defining the responsibilities and obligations of all levels of management and employees in safety production thereby forming a
Level 1 Probation Period comprehensive safety production management system.Safety Management Organizational Structure
Safe and Healthy Production General Manager Responsible for overall leadership and assuming primary responsibility organizing and supervising the implementation of
the seven responsibilities outlined in the Work Safety Law.Occupational Health and Safety Primary Person in Charge of Safety
Supervises and manages safety efforts.Genbyte has established an occupational health and safety policy centered on "Compliance with Coordinates the implementation of the seven key safety
laws and regulations prevention of occupational hazards; protection of employee rights and duties and oversees documentation and compliance.building a better life together." The Company has implemented various occupational health and
safety management systems including the Occupational Health and Safety Operation Control
Procedure Medical Health and Occupational Disease Prevention Procedure Occupational Disease Human Resources and Finance Department Manufacturing Center Supply Chain Center R&D Center
Prevention Management Regulations Occupational Disease Prevention and Control Procedure and Administration Center Manages departmental Oversees departmental Manages departmental Responsible for its own
Labor Protection Equipment Control Procedure to provide clear guidance for all employees. Responsible for safety safety. safety. safety and assists safety management.Additionally the Company engages third-party agencies to regularly inspect and assess workplace within its own department. Ensures proper Develops safety business units with Develops safety
occupational hazard factors producing an Occupational Hazard Detection and Evaluation Report. Executes departmental allocation and exclusive policies and operating safety compliance. management procedures
safety duties and ensures use of safety-related procedures and carries Coordinates with and operational protocols
Employees are also equipped with protective gear such as earplugs safety goggles dust masks qualified safety personnel funds. out assigned safety suppliers and ensures and fulfills departmental
and safety shoes.Occupational Health are in place. responsibilities. relevant qualification safety obligations.During the reporting period the Company successfully passed the ISO 45001:2018 Occupational documents are provided.and Safety Management
Health and Safety Management System certification. System Certification
During the reporting period SMT Workshop DIP Workshop Engineering Department Quality Department
Oversees workshop safety. Manages workshop safety. Responsible for departmental Handles departmental safety.The Company invested 225400 yuan Implements safety Enforces safety protocols safety. Follows safety protocols The coverage rate for employee The coverage rate for employee
in work-related injury insurance regulations is familiar understands emergency Ensures daily maintenance understands emergency health check-ups reached health check-ups reached with emergency response handling procedures of production equipment procedures and promptly
procedures and promptly and reports any incidents and conducts routine reports safety-related
RMB reports any production- without delay. safety hazard checks and incidents.related incidents. remediation.And the qualification rate for hazard No new occupational disease cases
monitoring was also were reported
The Safety Management Organizational Structure
91 92During the reporting period Electric Shock Emergency Drill Case Study
The Company invested RMB 707000 There were zero safety production accidents zero work-related
in safety production fatalities and zero total work injuries
In 2024 an electric shock emergency drill was
RMB conducted in the SMT workshop. The drill combined
on-site explanation with hands -on practice
allowing employees to gain a deeper understanding
of emergency response procedures for electric
shock incidents including CPR and other first aid
Safety Production Goals techniques. This significantly improved their ability to
respond to unexpected emergencies.To implement the principle of "safety first prevention first and comprehensive governance" prevent major accidents reduce the
occurrence of various accidents and achieve safe production the Company has formulated the "Safety Production Responsibility
Electric Shock Drill
Assessment and Reward/Punishment System" and organized employees to sign the "Safety Production Responsibility Letter" to
ensure the implementation of safety production responsibility and goal management. The Vice General Manager and Department
Directors hold leadership responsibility for the safety work of their respective departments and are the primary responsible persons
for safety production in their departments. Department Managers are responsible for the safety work within their departments and
are the first responsible persons for safety production. Hazardous Chemicals Management
Genbyte Safety Production Goals Genbyte has established strict management procedures for hazardous chemicals through the implementation of policies such as
the Hazardous Chemical Control Procedure. These regulations cover every aspect of hazardous chemicals management including
procurement handling storage usage and disposal.Goal Achievement Status A dedicated chemical warehouse has been set up staffed with trained safety management personnel to ensure storage conditions
meet safety standards thereby minimizing risks such as leaks and fire incidents. Regular inventory checks and inspections are
Occupational disease occurrence rate: 0 Achieved conducted to promptly handle expired or discarded chemicals reducing environmental risks and safeguarding employee health.Additionally the Company places strong emphasis on employee training related to hazardous chemical safety. These efforts aim to
Work-related injury/death: 0 Achieved enhance awareness and emergency handling capabilities among staff.Potential explosion hazards: 0 Achieved
Special operation personnel with certificates: 100% Achieved
Environmental and safety training completion rate: 100% Achieved
Safety Management Measures
Genbyte has established various emergency response plans for production safety such as the Production Safety Accident
Emergency Plan and the Emergency Preparedness and Response Control Procedure. The Company regularly organizes emergency
drills to enhance employees' emergency response capabilities as well as their abilities in self-rescue and mutual aid. Workshop Explosion-Proof Cabinet
In addition a Production Safety Accident Emergency Command Center has been established which takes full responsibility for the
coordination and command of emergency response efforts to ensure swift and effective action in the event of an incident.A comprehensive Safety Hazard Identification and Rectification System has also been implemented to handle daily safety
inspections and hidden danger identification. This ensures that all safety equipment in production areas remains functional and
effective and that potential hazards are promptly addressed and eliminated.During the reporting period
The Company's safety hazard rectification rate reached A total of 8 emergency drills were conducted
93 94Hazardous Chemical Spill Emergency Drill Case Fire Safety Drill Case
In 2024 Genbyte conducted a hazardous chemical spill emergency drill simulating a chemical leakage scenario in In 2024 Genbye held a fire emergency drill in collaboration with professional firefighters. The training included
the workshop. The drill included training on emergency response procedures when chemicals come into contact theoretical instruction and hands-on practice in fire prevention escape procedures and proper use of
with the skin or eyes. During the drill the response team promptly activated emergency protocols using the on-site extinguishers. A simulated fire scenario allowed employees to engage directly with firefighting equipment and
shower and eyewash station to rinse for 15 minutes while simultaneously evacuating personnel and sealing off the evacuation techniques significantly enhancing their safety awareness and teamwork during emergencies.affected area.This drill significantly enhanced employees'familiarity with emergency equipment operation and teamwork
efficiency ensuring that in real incidents quick and coordinated responses can effectively minimize injury risks.Fire Safety Drill
Hazardous Chemical Spill Drill
Safety Assurance for Stakeholders
Genbyte has implemented systems such as the Stakeholder Control Procedure and Contractor Management Procedure to ensure
the safety of all stakeholders operating within or alongside the company. These systems clearly define requirements for stakeholder
pre-qualification training on-site supervision performance evaluation and the identification and communication of hazards.By actively managing these elements the Company ensures that occupational health and safety risks associated with stakeholder
activities are effectively controlled. Through joint efforts Genbyte and its stakeholders continuously enhance safety performance
to meet the requirements of the Company's occupational health and safety management system.Posted Safety Warning Signage
Safety Culture Development
Genbyte considers safety culture a core part of corporate management and has established the Competency Training and
Awareness Management Procedure. The Company organizes regular safety trainings covering hazard identification emergency Public Walfare Commitment
response procedures and the proper use of personal protective equipment.Efforts such as safety assessments fire safety inspections emergency training manuals and safety signage postings ensure that
employees remain alert and capable of preventing accidents in the workplace.Social Welfare
During the reporting period
Genbyte is committed to fulfilling its corporate social responsibilities and actively participates in public welfare initiatives.Safety training sessions held Total participants Total training hours The Company works hand-in-hand with local communities to support public service projects and volunteer activities while
encouraging employee engagement in community service and recognizing those who make notable contributions.Guided by the concept of "Green Technology for the Greater Good" Genbyte builds its social contribution efforts on three pillars:
technological innovation environmental stewardship and talent development. The Company continues to promote green
manufacturing create job opportunities and support community development aiming to generate lasting value for society.Safety training coverage rate Risk prevention training coverage rate
95 96During the reporting period
New jobs created
Public welfare contributions
RMB
2024 “Charitable Enterprise”
Honor Plaque
"Belt and Road Initiative"
Genbyte actively supports China's "Belt and Road Initiative" by leveraging its strengths in smart controllers and new energy
technologies. Through overseas investment technology export and localized operations the Company is deeply integrated into
infrastructure development and industrial upgrading efforts in BRI-participating countries.Investment Achievements and Future Plans under the BRI
Vietnam Subsidiary Genbyte invested approx. RMB 150 million to build a modern
Construction manufacturing base in Ho Chi Minh City.Introduced advanced domestic production lines for smart
Technology Export controllers and new energy technologies to serve the Vietnamese
and European-American markets.Investment Over 90% of employees are local hires with ongoing technical and Localized Operations vocational training to support talent development.Partnered with Vietnamese industry players by offering smart
Empowering Local Industry controller solutions to enhance product competitiveness and drive
industrial upgrades.The Vietnam subsidiary achieved RMB 320 million in revenue in 2024
Economic Impact becoming a key growth driver for the Company's global business.Technology transfer and infrastructure investment improved
Impact Social Impact quality of life and strengthened community recognition of Chinese
enterprises.Genbyte plans to establish production facilities in additional
countries and regions further expanding the global reach of its
smart controller and new energy technologies.Deepening BRI Expansion At the same time the Company is exploring joint efforts with local
governments and enterprises to develop green industrial parks
supporting the long-term sustainable growth of regional economies.Future Outlook Genbyte is adopting international ESG (Environmental Social and
Enhancing Responsibility Governance) standards to improve environmental practices and
Standards social responsibility management at its overseas facilities.The successful model in Vietnam will be replicated in other BRI
Global Tech Empowerment countries establishing a responsible“ Technology and Investment”
global growth strategy.
97 98Future Outlook
Looking ahead Genbyte will pursue a core strategy of "technology-driven innovation and
global expansion" to seize opportunities and boldly face emerging challenges. Despite
uncertainties in the market environment we firmly believe that with our robust R&D
capabilities comprehensive global footprint and strong customer base the Company will
continue to make breakthroughs in technological advancement market development and
capacity expansion.We will maintain a sharp focus on our core business drive innovation optimize our product
portfolio and enhance market competitiveness. In parallel we will continue implementing our
equity incentive plan and refine the shareholding structure to build a solid foundation for long-
term healthy growth. On the ESG frontGenbyte will actively align with global sustainability
trends by increasing investment in green technologies promoting energy efficiency and
emission reduction and fulfilling our corporate social responsibilities.We remain committed to employee well-being fostering an inclusive and diverse corporate
culture to strengthen team cohesion and innovation. By continuously improving our
governance framework and enhancing transparency and compliance we strive to become a
trusted partner and a respected industry leader.In the future Genbyte will embrace change with greater openness break industry boundaries
and build a collaborative and innovative ecosystem. We are ready to step out of our comfort
zone and face challenges head-on. We believe that by anchoring long-term value amid
uncertainty and redefining our competitive edge through adversity we can rise above the
fierce competition and write a new chapter in our company’s journey.
99 100Appendix Environmental Performance
Indicator Unit 2022 2023 2024
Tota l E n v i ro n m e n ta l P rote ct i o n
Key Performance Indicators Investment RMB 10000 34.83 43.72 67.42
Environmental Violations Cases 0 0 0Environmen
tal Sessions 135 150 156
Governance Performance Protection
Number of Environmental Trainings
Training Participants People Times 3056 3484 3828
Indicator Unit 2022 2023 2024 Total Training Hours Hours 1555.5 1902 2359
Operating Revenue 10000 RMB 104211.04 122577.10 140193.11 Total Energy Consumption Tons of Standard Coal 961.12 1094.15 1385.80
Economic
Performance Net Profit 10000 RMB 17060.60 20800.38 20329.39 Energy Intensity Tons/10M Revenue 0.93 0.92 1.04
Total Tax Contribution 10000 RMB 3938.02 3496.62 2331.20 Direct Energy Consumption Tons of Standard Coal 138.60 143.46 165.80
Number of Shareholders' Meetings
Shareholders’ Held Times 3 5 4 Gasoline Consumption 10000 Liters 4.84 5.33 6.20
Meetings Resolutions Approved at Energy
Shareholders' Meetings Items 22 32 17 Diesel Consumption 10000 Liters 3.79 3.60 4.26
Number of Board Meetings Held Times 7 8 8 LPG Consumption Tons 22.82 24.00 26.75
Resolutions Approved by the Board Items 45 46 38 Indirect Energy Consumption Tons of Standard Coal 822.52 950.69 1220.00
Board of
Directors Number of Board Members Persons 5 5 5 Purchased Electricity 10000 kWh 669.26 773.55 992.68
Number of Independent Directors Persons 2 2 2 Total Packaging Material Used Tons 455.26 1255.60 1072.95
Number of Female Directors Persons 2 1 1 Packaging Material Intensity Tons/10M Revenue 0.44 1.06 0.81
Number of Supervisors Persons 3 3 3 Packaging Paper-based Packaging Tons 334.53 1038.06 801.24
Board of Number of Supervisory Board Meetings Material
Supervisors Held Times 7 8 9 Consumption Plastic Packaging Tons 99.29 159.03 195.92
Resolutions Approved by Supervisory
Board Items 36 33 28 Other Packaging Materials Tons 21.44 58.51 75.79
Executive Total Compensation for Directors
Compensation Supervisors and Executives 10000 RMB 826.22 1076.85 1162.18 Recycled Packaging Materials Tons 150.90 89.54 93.84
Compliance
Training Number of Legal Training Sessions Times 4 4 4 Packaging Recycling Rate % 88.26 91.41 98.38
Signing Rate of Integrity and Ethics
Declarations % 40 60 90 Freshwater Withdrawal Tons 64122 102441.16 123438.46
Business Number of Anti-Corruption Complaints Cases 0 0 0 Water Freshwater Consumption Tons 64122 102441.16 123438.46
Ethics Number of Corruption Cases Filed and
Closed Cases 0 0 0
Resources
Total Water Consumption Tons 64122 102441.16 123438.46
Amount Involved in Unfair Competition
or Administrative Penalty 10000 RMB 0 0 0 Water Intensity
Tons/10M Revenue 62.10 86.16 92.96
Number of Onsite Investor Visits Times / 15 26 Total Air Emissions 10000 m3 30369.70 45761.26 67123.98
Number of Investors Received Onsite Persons / 92 Air Emission Intensity 10000 m3/10M Revenue 29.41 38.49 50.55
Investor 154 Emissions
Relations Interactions with Investors via Online Volatile Organic Compounds (VOCs) Tons /187 72 0.49 1.01Platform Times 111
Tin and Compounds Kilograms / 0.28 0.34
Investor Open Communication Sessions Times 1 3 3
Solid Non-hazardous Waste Generated Tons 9.10 10.80 28.80Information Number of Penalties for Disclosure
Disclosure Violations Times 0 0 0 Waste Non-hazardous Waste Intensity Tons/10M Revenue 0.0088 0.0091 0.0217
Explanation of Data Scope: Except for compliance training and business ethics data which pertain solely to Genbyte's headquarters all other data are based on
consolidated financial statements. Explanation of Data Scope: Except for compliance training and business ethics data which pertain solely to Genbyte's headquarters all other data are based on
consolidated financial statements.
101 102Environmental Performance Product Performance
Indicator Unit 2022 2023 2024 Indicator Unit 2022 2023 2024
Non-hazardous Waste Disposed Tons 9.10 10.80 28.80 Number of Effective Patents per 10 Million Pieces 0.0758 0.0718 0.0756
Revenue
Waste Plastic Tons 3.40 4.60 12.70 Innovation- Cumulative Number of Software Copyrights Items 70 76 84
Waste Paper Tons 5.70 6.20 16.10 driven Cumulative Number of Trademarks Items 15 34 36
Hazardous Waste Generated Tons 40.06 43.88 39.76 National High-tech Enterprise Status Count 1 1 1
Hazardous Waste Intensity Tons/10M Revenue 0.0388 0.0369 0.0299 Product Pass Rate % 98.49 99.07 99.20
Hazardous Waste Disposed Tons 40.06 43.88 39.76 Number of Annual Internal Quality Audits Times 3 3 6
Wastewater from Cleaning (HW17) Tons 18.58 / / Number of Third-Party Inspections Times 12 13 20
Waste Organic Solvents (HW06) Tons 8.26 7.32 8.01 Product Recall Quantity Pieces 0 0 0
Waste Activated Carbon (HW49) Tons 4.64 15.61 14.68 Product
Quality Products Recalled for Health and Safety Pieces 0 0 0Reasons
Waste Containers (HW49) Tons 3.66 2.70 3.09 RMB
Amount Involved in Major Safety and 10000 0 0 0
Waste Detergents (HW06) Tons 3.16 18.37 13.94 Quality Accidents
Waste Conformal Coating (HW12) Tons 1.75 / / Number of Quality Training Sessions Sessions 1678 1741 1952
Waste PCBs (HW49) Tons / 0.04 / Total Duration of Quality Training Hours 3356 3482 3904
Waste Fluorescent Lamps (HW29) Tons / 0.01 / Number of Quality Training Sessions Sessions 45 46 54
Waste Mineral Oil (HW08) Tons / / 0.04 Number of Customer Complaints Times 15 11 8
Compliance Rate for Waste Disposal % 100 100 100 Number of Complaints Resolved Times 15 11 8
Complaint Resolution Rate % 100 100 100
Product Performance Customer Satisfaction % 92.73 92.23 94.45
Customer Number of Customers Participating in Persons 11 10 11
Service Survey
Indicator Unit 2022 2023 2024 Survey Participation Rate % 12.36 11.26 12.36
R&D Investment RMB 10000 6068.82 7894.16 8616.28 Number of Valid Customer Satisfaction Copies 11 10 11
Surveys
R&D Investment as a percentage of
revenue % 5.82 6.44 6.15
Number of Response Evaluations for
Customer Complaints Times 12 12 12
Number of R&D Personnel Persons 221 297 327 Response Evaluation Pass Rate % 100 100 100
R&D Personnel Percentage % 16.14 15.58 14.48 Amount Involved in Data Security/
Customer Privacy Breaches RMB 10000 0 0 0
Sales Revenue from New Products RMB 10000 51367.10 54101.30 39820.70 Number of Customer Information
Innovation- Data Breaches Pieces 0 0 0
driven Cumulative Number of Patents Granted Items 79 88 106 Security and Number of Verified Complaints Involving
Customer Privacy Invasion or Loss of Customer Pieces 0 0 0
Number of Patent Applications Items 20 21 29 Privacy Data
Protection
Cumulative Number of Invention Patents Confirmed Cases of Customer Data Items 20 26 31 Pieces 0 0 0
Granted Leakage Theft or Loss
Cumulative Number of Utility Model Number of Data Security/Customer Items 46 48 59
Patents Granted Privacy Protection Trainings
Times 4 4 4
Cumulative Number of Design Patents Items 11 14 16
Granted
Explanation of Data Scope: Except for compliance training and business ethics data which pertain solely to Genbyte's headquarters all other data are based on
consolidated financial statements.
103 104Product Performance Employee Performance
Indicator Unit 2022 2023 2024 Indicator Unit 2022 2023 2024
Data Security Data Security/Customer Privacy Protection
and Customer Training Coverage Rate %
93 93 95 Employees with Bachelor's Degree Persons 228 254 327
Privacy Average Duration of Data Security/Privacy Employee
Protection Protection Training Hours 8 8 8 Structure Employees with Master's Degree Persons 9 11 14
Total Number of Suppliers Count 566 771 900 Employees with Doctorate Degree Persons 1 1 1
Suppliers with Quality Management
System Certification Count 342 573 652 Employee Training Investment 10000 RMB 39.27 45.64 50.41
Supplier Suppliers with Environmental Management System Certification Count 210 383 523 Number of Training Sessions sessions 60 66 75Management Suppliers with Occupational Health and
Safety Management System Certification Count 168 240 330 Total Number of Employees Trained employees 1000 1350 1350
Supplier Integrity Agreement Signing
Rate % 100 100 100 Total Training Attendances attendances 1167 1520 1662
Local Supplier Procurement Expenditure
Ratio % 43.04 54.43 51.75 Training Coverage Rate % 86 88 89
Total Training Hours hours 2415 2668 3842
Average Training Hours per Employee hours/employee 2.07 1.76 2.31
Employee Performance Average Training Hours for Female hours/
Employees employee 4.6 3.7 5.3
Indicator Unit 2022 2023 2024 Average Training Hours for Male hours/Employee Employees employee 3.7 3.2 4
Training and Average Training Hours for Senior hours/
Labor Contract Signing Rate % 100 100 100 Development Management employee 16 17 24
Average Training Hours for Middle hours/
Minority Ethnic Employees Persons 236 344 332 Management employee 8.6 5.9 8.7
Average Training Hours for Frontline hours/
Temporary Labor Personnel Persons 34 0 199 Employees employee 3.2 2.9 3.6
Average Training Hours for Production hours/
Employee Female Employees in Management % 3 2 2 Staff employee 5 6 6.5
Rights Average Training Hours for Technical hours/
Protection Employees Taking Maternity Leave Persons 7 19 20 Staff employee 13 15 18
hours/
Maternity Leave Return Rate % 100 100 100 Average Training Hours for Sales Staff employee 25 26 28
hours/
Average Paid Annual Leave Days Days 6.1 6.5 7 Average Training Hours for Finance Staff employee 12 14 18
Average Training Hours for hours/
Employee Complaints Received Cases 0 0 0 Administrative Staff employee 10 8 8
Average Training Hours for Other hours/
Employee Satisfaction % 89 90 92 Employees employee 24 22 21
Total Number of Employees Persons 1369 1906 2259 Employee Medical Examination Coverage Rate % 100 100 100
677 704 1103 Investment in Safe Production RMB 10000 68.85 69.02 70.7Male Employees Persons
692 1202 1156 Total Investment in Safety Training RMB 10000 52 55 60Female Employees Persons
434 633 783 Occupational Number of Safety Training Sessions Sessions 138 143 150Employees Aged 30 and Below Persons
Health and
Employees Aged 30-40 (inclusive of Safety Total Participation in Safety Training Persons 2951 3084 3278Employee
Structure 30 exclusive of 40)
Persons 722 909 1091
Employees Aged 40-50 (inclusive of Total Duration of Safety Training Hours 70824 74016 78672
40 exclusive of 50) Persons 170 315 336
Safety Training Employee Coverage Rate % 100 100 100
Employees Aged 50 and Above Persons 43 49 49
Employees with Below College Safety Risk Prevention Training Coverage Rate % 100 100 100Persons 927 1390 1619
Education
Number of Safety Accidents Cases 0 0 0
Employees with College Education Persons 204 250 298
105 106Employee Performance Indicator Index
Indicator Unit 2022 2023 2024
Number of Work-Related Deaths Persons 0 0 0 GRI (Global Reporting Initiative) Standards Index
Total Number of Work-Related Injuries Persons 0 0 0 Report Chapter Corresponding GRI Standards
Total Workdays Lost Due to Work-Related Days 0 0 0
Injuries About This Report 2-2 / 2-3 / 2-4
Work Hour Loss Rate per Million Hours Worked % 0 0 0 Message from the Chairman 2-22
Hazard Rectification Rate % 97.2 97.8 98.1 Key ESG Performance 201-1 / 405-1
Occupational Number of Safety Emergency Drills Times 7 7 8
Health and About Genbyte Intelligent 2-1 / 2-6 / 2-9
Safety Investment in Work Injury Insurance RMB 10000 6.91 9.40 22.54 Strengthening ESG Management 2-9 / 2-14 / 2-16 / 2-17 / 2-29 / 3-1 / 3-2 / 3-3
Investment in Safety Production Liability RMB 10000 / 3.10 1.55
Insurance Robust Corporate Governance Compliance 2-9 / 2-10 / 2-12 / 2-19 / 2-20 / 2-27 / 405-1
Safety Production Liability Insurance % 100 100 100 Compliance-
Investment Rate driven and Risk Control 2-27 / 201-1 / 207-1
Occupational Disease Hazard Factor Testing % 100 100 100 Sustainable
Rate Development Investor Relations Management 2-26 / 2-27 / 2-29
Occupational Disease Hazard Factor Monitoring % 100 100 100
Pass Rate Business Ethics Practices 2-27 / 205-2 / 205-3 / 206-1
New Occupational Diseases Cases 0 0 0 Climate Change Response Green Environment 201-2 / 305-1 / 305-2 / 305-4
Building 2-27
Green
Commitment Pollution Control 2-27 / 303-2 / 303-4 / 306-2 / 306-3
Ecological Vision
Resource Efficiency 2-27 / 301-1 / 302-1 / 302-3 / 302-4 / 303-3 / 303-5
Empowering Green Operations /
Biodiversity Protection 2-27
Technological Innovation 2-27 / 203-2
Digital Intelligence Development /
Smart
Empowerment Product Quality Improvement 2-27 / 416-1 / 416-2
Innovation
Leadership Customer Rights Protection 2-27 / 417-1 / 417-2
Data and Privacy Protection 2-27 / 418-1
Responsible Supply Chain 2-6 / 2-27 / 308-1 / 414-1
Labor Relations Management 2-7 / 2-27 / 401-1 / 401-2 / 405-1
Building Talent Development 2-27 / 404-1 / 404-2
Together for a
Better Future Health and Safety at Work 2-27 / 403-1 / 403-2 / 403-3 / 403-5 / 403-6 / 403-7 / 403-9 / 403-10
Public Welfare Commitment 203-1 / 203-2 / 413-1
Future Outlook /
Appendix /
107 108Index to the Shenzhen Stock Exchange Listed Companies'Self-Regulatory Guidelines Reader Feedback
No. 17 – Sustainability Reporting (Trial Version)
Dear Reader:
Guideline Topics Corresponding Articles Corresponding Sections in the Report
Thank you for taking the time to read this report. In our ongoing efforts to provide more complete professional and valuable ESG
Climate Change Response Articles 21–28 Responding to Climate Change information to you and other stakeholders-and to further improve the quality of our ESG reporting-Genbyte sincerely invites your
feedback on this report to support our progress in sustainable development.Pollutant Emissions Article 30 Strengthening Pollution Control
Waste Management Article 31 Strengthening Pollution Control 1. Your identity in relation to Genbyte Intelligent:
Ecosystem and Biodiversity Protection Article 32 Protecting Ecological Diversity Government or regulatory body Shareholder/Investor Employee Supplier
Environmental Compliance Management Article 33 Building a Green Environment Customer Industry association or research institution NGO or community organization
Energy Utilization Article 35 Comprehensive Resource Utilization Media Other (please specify): ____________
Water Resource Utilization Article 36 Comprehensive Resource Utilization
Circular Economy Article 37 Comprehensive Resource Utilization 2. How would you rate the overall quality of this year's ESG report
Excellent Good Fair Poor Very poor
Rural Revitalization Article 39 Fulfilling Social Responsibility
Social Contribution Article 40 Fulfilling Social Responsibility
3. How would you assess the quality of the information disclosed in this report
Innovation-Driven Development Article 42 Technology-Driven Innovation
Excellent Good Fair Poor Very poor
Tech Ethics Article 43 Technology-Driven Innovation
Supply Chain Security Article 45 Responsible Supply Chain 4. How would you evaluate the design and layout of this report
Fair Treatment of SMEs Article 46 Responsible Supply Chain Excellent Good Fair Poor Very poor
Product and Service Safety and Quality Article 47 Enhancing Product Quality Customer Rights Protection
5.Which topics in this year's ESG report were of greatest interest or concern to you
Data Security and Customer Privacy Protection Article 48 Data and Privacy Protection
Employees Article 50 Labor Relations Management Talent Development Occupational Health and Safety
Due Diligence Article 52 ESG Governance Framework
6. Do you have any comments or suggestions for improving our ESG report or ESG practices
Stakeholder Engagement Article 53 Stakeholder Communication
Anti-Corruption and Anti-Bribery Article 55 Upholding Business Ethics
Anti-Unfair Competition Article 56 Upholding Business Ethics
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Email: genbyte@genbytech.com
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Subdistrict Guangming District Shenzhen China
109110
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