SUSTAINABILITY REPORT
Shenzhen INOVANCE Technology Co. Ltd.CONTENTS
About This Report 002 Chairman's Statement 004
Introduction to 006 Empowering 026
INOVANCE Decarbonization
Company Profile 006 Addressing Climate Change 026
Business Layout 007 Strengthening Energy Management 034
Core Business 006 Innovation Green Products 037
Annual Key Performance 008 Jointly Building a Net-zero Future 040
Ecosystem Protection 045
Sustainability and 009 Focus on Customer 048
Corporate Governance Satisfaction
Sustainability Management 009 Strict Product Quality Control 048
Strengthening Corporate Governance 016 Improving Customer Services 055
Compliant and Robust Operation 020Innovation Driven 058 Inclusive and Responsible 082
Development Ecosystem Building
R&D Innovation Focus 058 Building a Sustainable Supply Chain 082
Data Privacy Protection 063 Promoting Industrial Cooperation 087
and Development
Contributing to Social Development 089
Employee Development 066 Report Appendix 090
Guarantee Appendix 1: ESG Key Performance 090
Employee Rights and Welfare 066 Table
Protection Appendix 2: Index Table 102
Talent Attraction and Retention 071 Appendix 3: Description of Operating 108
Employee Training and Development 073 Sites
Occupational Health and Safety 077 Appendix 4: Glossary 109
Appendix 5: Description of 2024 111
Material Topics
Appendix 6: Biodiversity Impact 113
Assessment
Appendix 7: Compliance Management of 114
Key Environmental Supervision Entities
Appendix 8: Independent Third-party 115
Assurance
001About This Report
This report is the 1st sustainability report of Shenzhen INOVANCE Technology Co. Ltd. (hereinafter referred to
as “INOVANCE” “the Company” or “we”). Previously INOVANCE had published Environmental Social
and Governance (ESG) reports for four consecutive years. The report systematically presents INOVANCE’s
sustainable development philosophy management mechanisms and specific actions and provides
information on the Company’s ESG performance target progress and achievements in 2024. The report
aims to respond to the concerns of stakeholders and strengthen communication and interaction with
them to continuously promote sustainable development.Scope of Report Time Period
The information disclosed in this report covers The report releases annually with information and
Shenzhen INOVANCE Technology Co. Ltd. and data spanning the period from January 1 2024 to
its subsidiaries. Unless otherwise specified it is December 31 2024. For any information and data
consistent with the scope of the consolidated go beyond this time frame explanations will be
financial statements in the annual report of placed in where it is involved.INOVANCE (Stock Code: 300124.SZ).Reporting Standards
This report is complied in accordance with the following guidelines and standards:
*Shenzhen Stock Exchange (SZSE)’s Guidelines of Shenzhen Stock Exchange for Self-discipline Regulation of Listed
Companies No.17 - Sustainability Report (Trial) (hereinafter referred to as the “Guidelines No.17”)
*Self-regulatory Guidelines No.3 for Companies Listed on Shenzhen Stock Exchange - Preparation of Sustainability
Reports (hereinafter referred to as the “Guidelines No.3”)
*Global Sustainability Standards Board (GSSB)’s GRI Sustainability Reporting Standards (hereinafter referred to as the
“GRI Standards”)
*International Sustainability Standards Board (ISSB)’s Sustainability Disclosure Standard: General Requirements for
Disclosure of Sustainability-related Financial Information (IFRS S1) and Sustainability Disclosure Standard: Climate-
related Disclosure (IFRS S2)
*Evaluation criteria of international ESG rating agencies including MSCI S&P ISS and EcoVadis
*United Nations Sustainable Development Goals (UN SDGs)
002Data Description
The text information and data used in this report are derived from the Company’s actual operating raw data
internal documents financial reports self-media external disclosure information and public information of
authoritative third party. In case of any inconsistency between the relevant financial data and the Company’s
annual financial report the data in the financial report shall prevail. The report uses RMB as the currency unit
of measurement.Reliability Assurance
The report adheres to the principles of accuracy balance comparability materiality verifiability and
understandability. The report discloses information objectively truthfully and completely and does not
contain any false records misleading statements or major omissions. The report has been reviewed and
approved by the Board of Directors and the Board of Directors is responsible for the authenticity accuracy
and completeness of the content. To ensure consistency and comparability of information if revisions or
corrections to previous years’ information or data are involved the reasons for restatement and the revised
content will be specified in the relevant sections.Access to Report
The report is published in Simplified Chinese and English versions. In case of any discrepancy between the English
and the Simplified Chinese version the content of the Simplified Chinese version shall prevail. The digital version of
the report can be viewed and downloaded on INOVANCE’s official website www.inovance.com/global.External Assurance
To fully address the demands of various stakeholders and ensure the accuracy truthfulness and materiality of
the disclosed information INOVANCE engaged TüV SüD Certification and Testing (China) Co. Ltd. to conduct
an independent and objective assurance in accordance with the AA1000 Assurance Standard v3 (AA1000AS v3).The assurance report can be found in the appendix to this report.Contact Us
INOVANCE Sustainability Office
E-mail: sustainability@inovance.com Website：http://www.inovance.com/global
Address: INOVANCE Headquarter 6 Lanqing 2nd Road Luhu Community Guanhu Subdistrict Longhua
District Shenzhen
003Chairman's Statement
Over the past year the global political and economic landscape has presented
a complex scenario with rising policy uncertainties due to geopolitical conflicts
and government elections worldwide. Economic growth momentum has
weakened amid political turbulence and structural challenges characterized
by sluggish demand in global manufacturing overcapacity and intensified
industry competition. Meanwhile China has called for vigorous development of
new quality productive forces encouraging enterprises to pursue technological
innovation and build sustainable competitiveness. Against this backdrop
INOVANCE has defied the trend by leveraging technological innovation as
its engine driving transformation and upgrading towards intelligentization
digitalization and greening. This strategy has propelled its revenue to new
heights while achieving remarkable sustainable development outcomes.Guided by its proposed "2850" and "3030" decarbonization targets INOVANCE
has refined implementation pathways focusing on energy conservation low-
carbon operations and green supply chain development. In 2024 the
company strengthened measures such as digital energy management
production process optimization intelligent equipment upgrades and
energy structure improvements achieving significant emission reductions
in its operations. Notably its Suzhou facility earned the provincial-level
"Green Factory" award. The Company actively addresses the industry’s
growing demand for green and low-carbon transformation by embracing
the concept of "Two Improvements and Four Reductions." It delivers more
efficient energy-saving material-conserving and environmentally friendly
products continuously generating both economic and ecological value.The company has also conducted green supply chain assessments for key
suppliers fostering collaborative efforts across the value chain to build a
zero-carbon future.INOVANCE actively practices circular economy principles to enhance
resource utilization. Integrating environmental sustainability across product
lifecycles it emphasizes green design to reduce resource consumption Carbon Reduction Goals
and ecological dependence during manufacturing. The company adheres
to strict environmental compliance ensuring pollutant emissions meet
004standards while strengthening waste management and biodiversity risk mitigation.
As a listed company INOVANCE prioritizes "Efficient Operations Governance First" maintaining
legal compliance while enhancing corporate governance and risk management. In 2024 it
established a new Compensation and Evaluation Committee to optimize executive oversight.Focusing on customer satisfaction INOVANCE intensified R&D innovation and service upgrades
releasing an enhanced quality culture framework. Through expanded service teams optimized
networks and diversified channels customer satisfaction scores rose by 1.11 points year-on-
year. Collaborating with industrial partners the company strengthens ecosystem synergies
to build sustainable supply chains. As a responsible employer INOVANCE fosters an inclusive
safe workplace that empowers employee growth aligning corporate development with talent
advancement. Additionally it actively contributes to community development and charitable
initiatives.Looking ahead INOVANCE will "Seize Inevitable Opportunities" by accelerating R&D in green
energy-efficient solutions. It aims to achieve "Extreme Speed and Quality" in meeting customer
needs while advancing intelligent-digital-green product ecosystems through energy and
information flow integration. With aspirations to "Lead the Tide" the company strives to
become a global sustainability benchmark in industrial innovation.
005Introduction to INOVANCE / 2024 SUSTAINABILITY REPORT
Introduction to INOVANCE
Company Profile Business Layout
INOVANCE is a high-tech company engaged in the R&D manufacturing and INOVANCE has over 89 branches in Suzhou
sales of industrial automation control products and new energy products. Shanghai Changzhou Nanjing Yueyang Xi’an
The Company focuses on developing core technologies for information layer and Hong Kong China and a number of R&D
control layer drive layer execution layer and sensor layer and automation centers in Shenzhen Suzhou Xi’an Nanjing
digitalization and intelligence in the industrial sector. It is committed to Milan in Italy and Stuttgart in Germany.promoting intelligent manufacturing industrial upgrading improving the quality
of life and fostering the development of industrial civilization by providing more
intelligent precise and advanced integrated products and solutions on the basis
of its independently developed industrial automation control technologies.France
Vision & Mission INOVANCE France / IRAI
Advancing industrial technology for a better world
Core Values
Customer first contributor oriented uphold to openness and
cooperation strive for excellence
Year of incorporation Stock code
2003 300124.SZ
Listed stock exchange Headquarter location
SZSE Shenzhen Guangdong
Province P.R. China Türkiye
INOVANCE Türkiye
Serving markets
Approximately 40 countries and regions including China India Germany
Vietnam South Korea Germany Italy and Türkiye. INOVANCE Europe
Core Business Italy
INOVA AUTOMATION Italy
The Company primarily provides core industrial automation products and
solutions for equipment automation production line automation and factory
automation including AC drives servo systems PLCs/HMIs/CNCs industrial
robots high-performance motors precision mechanical products pneumatic
components sensors and industrial vision systems. For the new energy vehicle
industry we provide electric drive and vehicle-mounted charging systems. For
Spain India
the elevator industry we provide elevator control systems (including AC drives)
human-machine interfaces door systems cables and harnesses elevator IoT INOVANCE Spain
INOVANCE India
products and integrated electrical solutions. For the rail transit industry we
offer traction and control systems.
006R&D center Manufacturing center Marketing & Service center
Xi’an Changchun Tianjin
Xi’an INOVANCE Changchun WETON Tianjin BST Electrical
Beijing
EKSYS Beijing
Jinan Dalian South Korea
Jinan INOVANCE* Dalian Zhiding SBC / INOVANCE Korea
Shanghai
Hungary BST/BNK CABLE
INOVANCE Technology Hungary
INOVANCE Automotive Hungary*
Ningbo
EST United States
INOVANCE USA
Türkiye Changzhou Suzhou
INOVANCE Türkiye INOVANCE New Energy Changzhou
Suzhou INOVANCE
Suzhou INOVANCE Control
Nanjing
INOVANCE Automotive
Nanjing INOVANCE
Jiangsu KINGWAY
Jiaxing
BST Machinery & Electronics (Jiaxing)
Italy Yueyang Shenzhen Dongguan
INOVA AUTOMATION Italy Yueyang INOVANCE Shenzhen INOVANCE INOVANCE Dongguan
89Branches
India Thailand Hong Kong China Foshan Notes:
INOVANCE India INOVANCE Automotive Thailand INOVA AUTOMATION MJB The names shown in the picture are abbreviations of part of our
operating locations. Please refer to Appendix 3 for their full names.Locations marked with “*” are under construction.
007Introduction to INOVANCE / 2024 SUSTAINABILITY REPORT
Annual Key Performance
Indicators 2024 Unit
Revenue 37.04 Billion RMB
Net profit attributable to shareholders of the listed company 4.29 Billion RMB
Economic
Basic earnings per share (EPS) 1.60 RMB per share
Performance
Total assets 57.18 Billion RMB
Weighted average ROE 16.52 %
GHG intensity 4.13 tCO2e/RMB 1 million Revenue
Newly avoided GHG emissions 14447904 tCO2e/year
Environmental
Total renewable energy consumption 19624.75 MWh
Performance
Energy saved from new energy saving projects 1458755 kWh/year
Amount of recycled/reused waste 4869.90 Tons
R&D investment 3.15 Billion RMB
Proportion of R&D investment 8.50 %
Social Number of new patent applications 685 /
Performance Amount of Employee Training Hours 719255.90 Hours
Coverage rate of social insurance 100 %
Number of participants in safety training sessions 46307 /
Number of independent directors on the Board of Directors 3 /
Governance Number of investor investigation reception Over 4000 /
Performance Amount of anti-corruption training hours 1220.17 Hours
Number of major incidents violated laws and regulations 0 Time
Award Name Awarding Unit
National May 1st Labor Award All-China Federation of Trade Unions
Included in 2024 China ESG Top 50 Enterprises Forbes China
Best ESG Practice New Fortune Magazine
Best ESG Disclosure New Fortune Magazine
Included in S&P Global’s Sustainability Yearbook 2024 (China Edition) S&P Global
MSCI ESG Rating Morningstar ESG Sustainalytics ESG Risk Rating
A 23.3
S&P Global Corporate Sustainability Assessment Scoring CDP Climate Change Rating
45 Top 9% of the industry B Management level
Note: The rating results are based on queries as of December 31 2024.
008Sustainability and Corporate
Governance
INOVANCE consistently practices sustainable development fully integrating ESG management into day-
to-day business operations. Through improving its ESG governance structure formulating core ESG
strategies strengthening stakeholder engagement and optimizing the management of material topics
the Company continuously enhances its ESG management capabilities and promotes alignment between
the concept of sustainable development corporate strategy and stakeholder expectations.Sustainability Management
Sustainability Governance Framework
INOVANCE values the construction of its sustainability governance system and has established a top-down
ESG governance structure.It is the highest decision-making and supervisory body and is responsible for
Board of comprehensive oversight of the Company’s ESG affairs providing strategic guidance
Directors for sustainability development and exercising ultimate decision-making authority over
relevant strategies goals and major issues.Executive Comprising board members and senior executives it is responsible for reviewing and
Management deciding on major management matters including the implementation and performance of
Team (EMT) sustainability strategies.It is responsible for formulating the Company’s sustainability strategy reviewing ESG
risk identification results and developing risk response strategies guiding all first-level
departments and subsidiaries in ESG management and tracking their progress and
Sustainability reviewing the Company’s sustainability disclosure. The Sustainability Committee keeps
Committee improving the Company’s sustainability system facilitates cross-functional and cross-
process ESG coordination and holds regular meetings to report the progress and
performance of the Company’s ESG management to the EMT and to listen to their opinions
and suggestions.Sustainability As the executive body under the Sustainability Committee it is responsible for implementing
Office ESG management measures including those related to climate change.
009Sustainability and Corporate Governance / 2024 SUSTAINABILITY REPORT
The Company also incorporates ESG Sustainability Management Framework
performance indicators into the
Decision-making
management’s remuneration system Board of Directorslevel
and applies appropriate rewards Executive Management Team (EMT)
Management
and clawbacks based on the annual level
Sustainability Committee
appraisal results to strengthen the
ESG governance capabilities and Operational Sustainability Office
support the orderly advancement of level
Departments Business divisions Subsidiaries
ESG efforts.ESG Strategy
To fully support the Company’s sustainable development and enhance ESG management capabilities the
Company based on its own strategy industry dynamics and the UN SDGs has identified six dimensions of its
ESG strategy namely “Corporate Governance” “Lean Innovation” “Low-Carbon Pioneer” “ResponsibleEcosystem” “Talent Development” and “Green Operations”. It develops an ESG strategy around these six
core areas clarifies the long-term goals of ESG efforts and promotes the full integration of ESG management
with business decision-making and daily operations.The Six Dimensions of ESG Strategy Supported UN SDGs
Corporate governance
* Continuously improve the corporate governance Goal 16: Peace Justice and
system Strong Institutions
* Create an internal compliance culture
Lean innovation
* Maintain high R&D investment Goal 9: Industry Innovation and
* Improve product quality and enhance quality Infrastructure
management efficiency Goal 12: Responsible
* Enhance customer service quality Consumption and Production
Low carbon pioneer
* Seize opportunities presented by the national carbon Goal 7: Affordable and Clean
peaking and carbon neutrality goals continue to Energydevelop products and solutions featuring “avoided Goal 9: Industry Innovationemissions” and facilitate the green and low-carbon and Infrastructure
transition of society
* Improve full life cycle management of products and Goal 12: Responsible
continuously reduce product carbon footprints Consumption and Production
Goal 13: Climate Action
Responsibility ecology
* Build a secure stable and resilient supply chain Goal 12: Responsible
* Realize a sustainable supply chain with a focus on Consumption and Production
survey and assessment of supply chain sustainability Goal 17: Partnerships for the
Goals
010Talent development
* Protect employees’ rights and benefits Goal 3: Good Health and Well-
* Provide a healthy and safe workplace being
* Foster all-round and sustainable development Goal 4: Quality Education
of employees Goal 5: Gender Equality
Goal 8: Decent Work and
Economic Growth
Goal 10: Reduced Inequality
Green operations
* Improve environmental management system to Goal 7: Affordable and Clean
ensure environmental compliance Energy
* Address climate risks and continuously enhance Goal 9: Industry Innovation and
the capacity to mitigate and adapt to climate Infrastructure
change
Goal 11: Sustainable Cities and
* Practice green and low-carbon production and Communities
operations
* Promote circular economy and enhance resource Goal 12: Responsible
efficiency Consumption and Production
Goal 13: Climate Action
Management of Material Topics
Stakeholder Engagement
Stakeholders’ expectations and demands are the source and motivation for us to improve our sustainability
performance. We respect and safeguard the legitimate rights and interests of all stakeholders striving to establish
long-term and stable communication mechanisms through various online and offline channels. In 2024 the
Company actively engaged with shareholders and investors customers employees government and regulatory
authorities suppliers and partners and community representatives on sustainable development matters to gather
their in-depth feedback and understand their expectations and suggestions on ESG management.Stakeholders Key Topics of Concern Engagement Methods
General Meeting of Shareholders
Innovation-Driven Earnings presentations
Development
Special announcements
Product and Service Safety and
Quality “Investor Relations” page on the Company’s official website
Green Products and Innovation INOVANCE’s Investor Relations official WeChat account
Employees Investor Relations email
Shareholders Opportunities in Clean Investor engagement activities (daily communication
Technology roadshows SZSE’s interactive platform investment strategy and investors sessions online communication)
Addressing Climate Change
Stakeholder surveys
011Sustainability and Corporate Governance / 2024 SUSTAINABILITY REPORT
Stakeholders Key Topics of Concern Engagement Methods
Addressing Climate Change
Opportunities in Clean Technology Industry exhibitions
Risk Management On-site visits
Sustainable Supply Chain Management Stakeholder surveys
Clients Product and Service Safety and Quality
Workers’ representative congress
President’s Mailbox
Employees Complaint hotline
Anti-commercial Bribery and Anti-corruption Whistleblower mechanism
Product and Service Safety and Quality Employee satisfaction survey
Data Security and Privacy Protection “INOVANCE Circle” internal forum
Employees HR mailbox
Stakeholder surveys
Innovation-Driven Development
Product and Service Safety and Quality Information disclosure
Data Security and Privacy Protection Institutional visits
Employees Official correspondence
Government and Waste Treatment Meetings and forums
regulatory bodies Circular Economy
Sustainable Supply Chain Management
Stakeholder surveys
Product and Service Safety and Quality
Green supply chain survey
Innovation-Driven Development
Supplier audit
Fair Competition
Supplier conferences
Suppliers and Addressing Climate Change Industry exhibitions
partners Anti-commercial Bribery and Anti-corruption
Social Contributions Community public welfare projects
Rural Revitalization Employee volunteering services
Community
representatives
Materiality Analysis
INOVANCE places great importance on the impact of material topic management on its sustainable development.The Company conducts materiality analysis annually. In 2024 based on domestic and international sustainability
policies and regulations the latest regulatory guidelines peer practices and external expert advice the Company
formulated a list of material topics. Following the principle of dual materiality topics were evaluated along
012two dimensions of“financial materiality”(impact on the Company’s business and financial performance)
and“impact materiality”(impact on the economy society and environment). Evaluation methods included
stakeholder surveys and expert reviews. The Company compiled the materiality matrix for the year based on
the evaluation results.* Financial Materiality Analysis: An internal expert model was adopted using average net profit over the past
three fiscal years as the financial reference indicator. Evaluation dimensions included the percentage impact on
net profit and the likelihood of occurrence both divided into five levels. Internal experts assessed each topic
on both dimensions and combined the results to determine financial materiality.*Impact Materiality Analysis: Stakeholder surveys were conducted through multiple channels targeting
shareholders and investors customers employees government and regulatory bodies suppliers and
partners and community representatives. Stakeholders evaluated ESG topics based on range likelihood and
irreversibility of impact. Each topic was rated as highly immaterial immaterial neutral material or highly
material. The Company collected 157 valid questionnaire responses. Survey results were adjusted in reference
to rating standards and client audit requirements to avoid distortions caused by a small sample size in the
survey feedback.Materiality Analysis Process
Background Identification
Business overview: Preparation of Topic List
Identify the Company’s business value
chain and geographic distribution Policy analysis:
External environment analysis: Analyze the impact of identified laws and
Identify relevant laws policies and policies on the Company’s operations
industry standards Rules and standards benchmarking:
Stakeholder impact identification: Refer to domestic and international
Analyze the impact of the Company’s sustainability-related standards
operations on stakeholders Peer analysis:
Refer to peer companies ’ ESG topic
settings
Materiality Evaluation
Financial impact expert analysis: Topic Reporting
Engage internal experts to assess
the financial materiality of each topic Process reporting:
based on degree and likelihood of Disclose the dual materiality analysis
financial impact process methodology and conclusions
Stakeholder survey: Topic reporting:
Distribute questionnaires through Disclose the materiality matrix
various channels assess materiality
of topics and adjust according to
rating standards and client audit
requirements
013Sustainability and Corporate Governance / 2024 SUSTAINABILITY REPORT
2024 Materiality Matrix
Highly material
Product and Service Safety
and Quality
Addressing Climate Change
Risk Management
Sustainable Supply Chain Environmental
Management
Data Security and Privacy Protection
Innovation-Driven Social Green Products and
Anti-commercial Bribery and Innovation Development
Anti-corruption Opportunities in Clean Governance
Technology
Materiality of Circular Economy Corporate Governance
economic social Employees
and
environmental Environmental Compliance
impact Fair Competition
Management
Pollutant Discharge
Due Diligence
Waste Treatment
Stakeholder Engagement
Energy Use
Cross-industry Collaboration and
Development
Water Resources Utilization
Equal Treatment of SMEs
Ecosystem and Biodiversity Protection
Ethics of Science and Technology
Social Contributions
Rural Revitalization
Immaterial Highly material
The Financial Materiality for INOVANCE
Topics of Dual Topics of Financial Topics of Impact
Materiality Materiality Materiality Immaterial Topics
Environmental Compliance
Management
Pollutant Discharge
Addressing Climate
Change Cross-industry Collaboration and
Development
Innovation-Driven
Development Risk Management Waste Treatment
Opportunities in Clean Employees Stakeholder Engagement
Technology Circular Economy Due Diligence
Product and Service Energy Use
Safety and Quality Data Security and Privacy Social ContributionsProtection
Sustainable Supply Chain Fair Competition
Management Anti-commercial Bribery and Anti-corruption Water Resources Utilization
Green Products and Rural Revitalization
Innovation
Equal Treatment of SMEs
Corporate Governance
Ecosystem and Biodiversity
Protection
Ethics of Science and Technology
014Changes in Material Topics
As this is INOVANCE’s first year identifying topics in accordance with the SZSE’s Guidelines No.17 using dual
materiality analysis topic names and structure differ significantly from last year. Key adjustments include:
Change in Name Topic Breakdown
Previous Topics Updated Topics Previous Topics Updated Topics
Climate Change Mitigation Addressing Climate Pollutant Discharge
and Adaptation Change
Emissions and Waste
Waste Treatment
Energy Management Energy Use Management
Environmental Compliance
Water Use Water Resources Management
Utilization
Innovation-Driven Social ContributionsR&D and Innovation Charity Events and
Development Volunteer Service
Rural Revitalization
Anti-commercial Bribery
and Anti-corruption
Topic Merge Compliance management
Fair Competition
Previous Topics Merged Topics
Talent Attraction and
Retention Newly Included Material Topics
Employee Rights and
Welfare
Employees Material Topics Reason for Inclusion
Employee Training and
Development
Due to the close alignment
Occupational health between the Company’s
and safety operations and the concept
Circular Economy
Product Safety and Quality and model of circular
Management Product and Service Safety economy this topic was
and Quality assessed to have impact
materiality.Customer Service Quality
Rural Revitalization
Topic Removal
Ethics of Science and
Technology
Previous Topics Reason for Removal It is included based on the
topic list provided in
It is included in the topic Equal Treatment of SMEs
Guidelines No.17 and the
Company’s actual operations.Intellectual Property “Innovation-DrivenProtection Development” and is no
longer separately listed. Due Diligence
Community Engagement It is included in the topic
and Development “Social Contributions”. Ecosystem and Biodiversity
Protection
015Sustainability and Corporate Governance / 2024 SUSTAINABILITY REPORT
Strengthening Corporate Governance
INOVANCE faithfully observes the principle of “efficient operation governance first” and complies with
all regulatory requirements in order to continuously improve its governance structure and mechanism for
a robust efficient corporate governance system.Corporate Governance System
The Company complies with the requirements of laws regulations and regulatory documents such as the
Company Law of the People’s Republic of China the Securities Law of the People’s Republic of China the Code of
Governance for Listed Companies in China and the Rules Governing the Listing of Shares on the Shenzhen Stock
Exchange GEM doing so to establish a structure for corporate governance comprised of the General Meeting of
Shareholders the Board of Directors the Board of Supervisors and EMT. While we value democracy and human
rights we insist on the centralization of authority and pursuit of harmony in diversity for decision-making thus
forming a governance mechanism with clearly defined rights and liabilities mutual coordination and checks
and balances while ensuring management that is efficient scientific and transparent.The Company has developed systems and normative documents such as the Articles of Association the Rules
of Procedures of the Board of Directors and the Working System of Independent Directors in accordance with
relevant laws and regulations. Thus it has firmly established the operative norms of the General Meeting of
Shareholders the Board of Directors and the Board of Supervisors clarifying the relevant responsibilities of
relevant organizations to ensure efficient operation of the governance system.The General Meeting of Shareholders is the highest authority of the Company. The Company convenes
General Meeting and holds the General Meeting of Shareholders in strict accordance with the Articles of Association
of Shareholders thereby ensuring the shareholders’ right to know and participate.As the Company’s decision-making organization for operation and management the Board of Directors is
responsible for the General Meeting of Shareholders. In order to ensure the scientific and rational decision-
making of the Board of Directors we consider the diverse backgrounds of the members of the Board including
gender age industry experience professional acumen and other relevant factors. The Company’s Board of
Directors comprises nine directors including three independent directors (accounting for 33%) and one female
director (accounting for 11%). The Board members engage in various fields such as electrical engineering
Board of and automation machinery finance accounting etc. and have the industry experience knowledge and
Directors risk management capability necessary to perform their duties thus supporting the Board of Directors make
appropriate decisions while ensuring the Company’s long-term sustainable development.In the reporting period the Board of Directors newly established the Nomination Committee and the
Remuneration and Appraisal Committee which together with the Audit Committee provide professional
support in their respective areas. Board members serving on committees have expertise in accounting financial
management and industry knowledge ensuring proper function of the committees.The Board of Supervisors is the Company’s permanent supervisory body. It oversees the directors and senior
managers in the conduct of their duties doing so in accordance with the law. Moreover it reviews the securities
Board of
issuance documents and periodic reports produced by the Board of Directors and issues written review
Supervisors
comments. The Board of Supervisors comprises three supervisors one of whom is an employee representative.
016Convening the General Meeting of Shareholders the Board of Directors and
the Board of Supervisors in 2024
General Meetings of Meetings of the Board of Meetings of the Board of
Shareholders Directors Supervisors
2 times 8 times 7 times
Note: More details on the Board of Directors and the corporate governance can be found in “Corporate Governance” of the
INOVANCE 2024 Annual Report.Protection of Investors’ Rights and Interests
The Company strictly follows the Securities Law of the People’s Republic of China the Rules Governing the Listing of
Shares on the Shenzhen Stock Exchange GEM and the Guidelines for the Management of Investor Relations of Listed
Companies. We have formulated the Information Disclosure Management System and established an efficient
transparent mechanism for the protection of fair and just exercise of rights by investors and their rights and
interests especially those of small and medium-size investors.Information Disclosure
The Company fulfills its information-disclosure obligations in accordance with the law implements the
principle of “truthfulness accuracy completeness timeliness and fairness” continues the effort to standardize
and refine the information-disclosure process while enhancing the quality broadening and ensuring the
transparency of information disclosure so as to protect the legitimate rights and interests of investors. Since
IPO the Company has obtained A ratings in the information-disclosure assessment of SZSE for 14 years
consecutively as the only one among all listed companies on the ChiNext market of SZSE.* Three Basis: Information-disclosure promotion method process-based process-documentation
template-based and key-link billboard-based.* Five Examinations & Three Determinations: Carefully examine the rules guidelines cases history
and essence in the process of announcement drafting; determine the logic core and description.Innovative * Project-based Operation: Establish a mechanism for information sharing and coupling with business
disclosure
departments in order to promote disclosure management by means of project operation.* Information Collection: Strengthen communication with lead departments and related personnel;
collect materials related to the Company’s operation finance and other aspects and accumulate
materials in advance for the preparation of the annual report and interim disclosure.Statutory * Information Review: Ensure that the information disclosed is true accurate and complete;
information continuously improve the disclosure quality and fully disclose all information that is beneficial to
disclosure investors’ value judgment and related decisions.* Disclosure Method: Release corporate ESG/sustainability reports annually and respond to investors’
concerns on the management of material sustainability topics.Voluntary * Disclosure Management: Organize the relevant departments to participate in sustainability
information knowledge and work skill training to enhance employees’ understanding of sustainability and further
disclosure improve the quality of information collection and disclosure.
017Sustainability and Corporate Governance / 2024 SUSTAINABILITY REPORT
Shareholder Engagement
In order to meet the varied needs of investors the Company has established comprehensive efficient diverse
engagement channels to listen to investors’ voices and promote engagement and recognition between the
two sides. Through the Company’s official website new media platform SZSE’s interactive platform investor
hotline investor relations email web conferencing and other channels the Company engages with investors
by means of earnings presentations road shows analyst meetings press conferences field research and other
means doing so to help them fully and quickly understand the Company’s dynamics and information and foster
strong investor relations.During the reporting period the Company answered 201 questions from investors through the SZSE’s
interactive platform (irm.cninfo.com.cn/szse) representing a reply rate of 100%; received a total of 517 visits
from domestic and international brokerage firms investment funds and individual investors involving more
than 4000 investors.INOVANCE’s 2023 Annual General Meeting (The meeting was held on May 17 2024)
Return to Investors
The Company takes the Articles of Association and other institutional documents as the basis for the protection
of shareholders’ rights and returns. While maintaining timely fair and healthy communication with investors
the Company has been rewarding them through a sound dividend distribution plan to ensure the long-term
value of their investment. As of the end of the reporting period the Company has paid cash dividends of RMB
6841 million cumulatively.
018Executive Compensation
The compensation for the Company’s senior executives (including executive members of the Board of Directors)
consists of three components: base annual salary short-term incentives and long-term incentives. The base salary
is primarily determined by the executive’s role responsibilities capabilities and prevailing market compensation
levels. In addition to fixed monthly payments it also includes employee benefits provided by the Company. Short-
term incentives mainly refer to performance-based bonuses and other one-time cash awards. Performance-based
bonuses are determined based on the Company’s annual business objectives and are awarded in the following
year depending on the extent to which individual and departmental goals are achieved. Long-term incentives
primarily include the equity incentive plan and the long-term incentive shareholding plan. The equity incentive
plan is designed to grant stock options and restricted shares to various levels of management high-performing
key personnel and critical talent. The long-term incentive shareholding plan focuses on granting stock options to
strategic talents who have made significant contributions to the Company’s long-term development.Note:The disclosure of “compensation” in this section includes employee incentive programs which differs in composition from the
compensation structure presented in the Annual Report of the Company.Number of Value of
Total Pre-tax Restricted Number of Vested/
Compensation Number
Name of Senior Shares Restricted Unlocked
Received from Grant Date of Granted (Ex- Grant Date of of Shares Executive and Shares Equity
the Company Restricted Shares Restricted Shares Unlocked
Chief Financial Position Dividend and Granted – the Incentives
During the – the 5th Equity Ex-Rights – the 6th Equity Under Long-
Officer on the
Reporting Incentive Plan Adjusted) –
6th Equity During the
Incentive Plan term Incentive
Board
Period the 5th Equity
Incentive Plan Reporting
Plan
(Million RMB) Incentive Plan
(Shares) Period
(Shares) (Million RMB)
Xingming Zhu Chairman and President 3.90 / 0 / 0 0 45034
October 28 August 23
Bin Zhou Director and Vice President 2.53 352500 150000 0.74 26259 2020 2022
Director Vice October 28 August 23
Junen Song President and 2.23 307500 130000 1.27 22496
Board Secretary 2020 2022
Chunlu Yang Director and Vice
October 28 August 23
President 2.37 307500 130000 1.27 22496 2020 2022
Chief Financial October 28 August 23 Yingxin Liu Officer 2.05 307500 130000 0.64 22496 2020 2022
Note：
1. The valuation of equity incentives covers the equity incentive plans vested or unlocked during the reporting period. For details
please refer to INOVANCE Annual Report 2024.
2. The value of equity incentives is calculated based on the fair value on the grant date (closing price on the grant date). The
calculation formula for the value of vested/unlocked equity incentives during the reporting period is: Value of vested/unlocked
equity incentives = Number of vested/unlocked equity incentives during the reporting period × Fair value on the grant date. For
details on the calculation base data please refer to INOVANCE Annual Report 2024 Announcement on Adjustments to the 5th
Equity Incentive Plan Announcement on the First Grant of Restricted Shares to Incentive Participants 5th Equity Incentive Plan
(2020 Equity Distribution Update) and Announcement on the First Grant of Class I Restricted Shares to Participants in the 6th Equity
Incentive Plan. During the reporting period Bin Zhou and Yingxin Liu did not exercise the 5th Equity Incentive Plan resulting in a
relatively low value of vested/unlocked equity incentives for them.
3. For details on the Company’s long-term incentive unlocking rules please refer to the INOVANCE Long-Term Incentive Fund Management
Measures. For the long-term incentive unlocking status during the reporting period please refer to INOVANCE Annual Report 2024.
019Sustainability and Corporate Governance / 2024 SUSTAINABILITY REPORT
Compliant and Robust Operation
Compliant and robust operation is the fundamental requirement and baseline principle for the Company’s
sustainable business development. The Company adheres to the philosophy of integrity and compliance
in operation continuously enhances risk management improves due diligence mechanisms optimizes
internal controls and strengthens business ethics management.Risk Management
The Company establishes a stable risk management and internal control system clarifies the risk management
structure and responsibility mechanisms regularly conducts risk identification and assessment formulates
response plans and dynamically monitors risk changes to ensure strong support for sustainable development.In 2024 the Company strengthened risk management and solidly advanced related work. The Company
embedded KCP SOD and CT planning into newly released processes to enhance the effectiveness of internal
control conducted CT testing across the Company to examine the execution of key control points launched RT
electronic workflows to reinforce self-improvement and responsibility closure in operations and strengthened
thematic risk management in key areas including updating the compliance risk map assessing financial
reporting quality risks enhancing internal control over financial reporting and developing and executing
control measures.Risk Management Framework
The Company has formulated the “Three Layers of Defense” risk control mechanism and the Board of
Directors which ultimately responsible for risk management authorizes EMT to identify and manage company-
level risks. Additionally it guides each area in the conduct of risk management and control and clarifies the risk
management responsibilities in each layer and department so as to prevent systematic risks.Three Layers of Defense for Risk Management at INOVANCE
The primary responsible entity for risk management proactively
First Layer of Defense
identifying and managing risks building internal control
1 Owner Business Executives and awareness and capabilities in the process and enhancing
Process Owners
substantive compliance with the process
Second Layer of Defense
Risk Management Internal Support the first-line core business departments in risk control
2 Controls and Risk Monitoring
Industry Sectors
Third Layer of Defense Exert independent supervisory and evaluative functions
Internal Audit establish a cold deterrence effect and report audit results to 3
the Audit Committee and company’s senior management
020Risk Management Mechanism
The Company has built a sound risk-management framework in line with its business reality and operation
mode in accordance with the COSO-ERM framework. We have developed rules–notably the Internal Risk Control
Management System and other guidelines for risk management in addition to which we’ve established a riskmanagement mechanism that encompasses the process of “risk identification and evaluation - risk responseand management - risk monitoring and reporting” We have also incorporated elements of risk management
into strategic plan and business plan development as the means to comprehensively enhance our risk control
and management capability.The risk control Center of Expertise (COE) constructs and optimizes the top-level risk control system
Optimization of the
Risk Control System and framework guides the element owners to establish the components of effective risk control
and Framework outputs the methodology and tools of risk management and internal control and guides the
implementation of risk control projects in each business area.The Company regularly conducts risk identification evaluation and prioritization collects internal
and external risk information identifies risks and scenarios evaluates risk levels in terms of
Risk Identification probability of occurrence and impact and outputs a risk matrix. Moreover the Company implementsand Evaluation the concept of group prevention and control as it encourages whistleblowing via the “president’smailbox” and “whistleblower” channels so as to encourage employees to identify potential risks
and dangers in production and operations and to report them promptly.For the top risks identified that need to be focused on control the Company designates the person
responsible for risk management and control formulates risk management and control objectives
Risk Response and response programs/measures forms risk maps develops detailed response plans as needed and
Management decomposes specific tasks to ensure effective implementation of risk management measures. For
risks that can be controlled within processes relevant tools and methods of process internal control
are utilized for management. During the reporting period the Company updated its compliance risk
map as a priority.The person responsible for risk management and control tracks and checks the progress and
effectiveness of risk management and control measures and adopts relevant means to monitor
Risk Monitoring and the level of risk and to provide early warning and corrective action. Additionally the internal audit
Reporting formulates annual plans based on a risk-oriented approach to focus on high risk areas to review
and evaluate the appropriateness and effectiveness of business activities internal control and risk
management and to promote the continuous improvement of the risk management system.Risk Culture Development
The Company organizes special training and examinations on risk control and built a risk control knowledge
platform library to provide comprehensive one-stop access to risk control knowledge for the business end and
enhance the risk management awareness of all staff.During the reporting period the Company conducted risk control training sessions targeting PO/PC personnel
process domain managers internal control BPs CT testers process document drafters and business managers.The Company also held multiple risk control examinations to assess the mastery of CT the suite of process
tools and basic concepts of risk control in business areas.As of the end of the reporting period the risk control knowledge base platform released a total of 26 risk
control knowledge documents covering content such as terminology explanations enablement materials form
templates and operational guidelines. Among them five key risk management tools i.e. the risk panorama and
risk map the suite of process internal control tools CT testing internal control issue tracking and improvement
and proactive review are included.
021Sustainability and Corporate Governance / 2024 SUSTAINABILITY REPORT
Internal Control
The Company has built an internal control system in compliance with the requirements of the Basic Standards
for Enterprise Internal Control and the relevant guidelines of SZSE and has established a series of internal-control
management systems such as the Internal Control System the Internal Control Evaluation System the Internal Control
Deficiency Identification Procedures etc. built internal control systems with focus on five dimensions: business goal
achievement asset and capital security operational efficiency compliance and reporting integrated methods and
tools such as KCP SOD and CT plan into business processes and conducted effect evaluation through internal
control tools to continuously provide important information on the effectiveness of the relevant elements of internal
control and promote the increase of the Company’s internal control management.*CT Test: The Company conducts CT test for all newly launched processes with defined KCPs and applies CT
principles to unlaunched processes for identification and review.*SOD Certification: The Company identifies incompatible job roles and breaks operational linkages to prevent
fraud and other risks. SOD has been embedded in newly launched and operational processes. For business
processes not yet launched controls are implemented based on the SOD principle.During the reporting period the Company focused on conducting special audits related to finance compliance
internal control major procurement and engineering project management.ESG Due Diligence
The Company accelerates the development and improvement of its ESG due diligence mechanism to identify
material sustainability-related risks and formulate response plans aiming to enhance its overall risk management
capability. In 2024 INOVANCE implemented several ESG-related due diligence programs targeting green and low-
carbon practices environmental management production safety human rights protection and conflict minerals.Green Supply Chain Survey Occupational Health and Safety Risk
The Company establishes a green supply chain Assessment
survey mechanism to better manage supply chain The Company applies the LEC evaluation method
risks. In July 2024 the Company conducted its to assess occupational health and safety risks
annual green supply chain survey for key suppliers identify hazards and categorize risks to produce
covering environmental management energy use risk identification reports. Every year the Company
GHG emissions production processes and related conducts inspections of occupational disease
management system certifications. hazards covering high risk job positions to provide a
basis for employee health management.Sustainability Internal Audit
The Company gradually carries out sustainability Conflict Minerals Investigation
internal audits covering business ethics human During the reporting period the Company updated
rights environment occupational health and safety its Conflict Minerals Control Management Regulation and
and plans to cover all key operation sites. In April committed to conflict-free mineral use. Every year
2024 the Company initiated its first sustainability the Company conducts investigations into the use
internal audit at Yueyang INOVANCE. The audit of conflict minerals and suppliers’ conflict minerals.results were used to support Yueyang INOVANCE in No use of conflict minerals was found internally or
improving sustainability performance and optimizing among suppliers during the year.internal management systems.
022Compliance Management
Strictly adhering to regulatory compliance we have formulated a compliance management system and
management mechanism centered on trade compliance anti-money laundering data compliance intellectual
property protection anti-corruption anti-unfair competition conflict of interest connected transaction
responsible marketing etc. Moreover We have integrated compliance requirements into all aspects of production
and operations forming a comprehensive compliance system for company behavior and management. We have
built a clean business environment with a focus on anti-corruption management and integrity in workplace.Compliance Management System
The Company strictly complies with all applicable laws and regulations in its operating regions and has
formulated the Business Conduct Guideline the Conflict of Interest Management Measures the Employee Discipline
Policy and the Workplace Accountability Management System to regulate both Company and employee behavior.Employee violations are categorized into economic business and behavioral violations. Complaints and reports
for these violations are handled respectively by the audit manager business manager and HR manager who
issue investigation reports and initiate accountability procedures.Compliance Management System
The Company establishes standard contract templates covering seven major systems to ensure
Trade compliance for all types of commercial and trade practices monitors trade policies and regulations in real
compliance time and updates compliance requirements annually and promotes their application across all business
processes.The Company conducts anti-money laundering-related compliance risk assessments integrates anti-
money laundering-related requirements in procurement activities covering production materials assets
Anti-money frameworks and services and checks the authenticity and legality of transactions through supplier
laundering
certification contract confirmation invoice audit and verification of sporadic receipts to strengthen the
supervision of economic behaviors.Conflict The Company establishes a conflict of interest system sets up different management requirements
of interest according to different job positions and levels and requires an internal conflict of interest declarations.The Company has formulated the Decision-Making System for Connected Transactions with detailed
provisions on the reporting of connected transactions withdrawal system decision-making authority
and information disclosure to ensure the fairness of the Company’s decision-making regarding
Connected connected transactions. The Company had no major connected transactions during the reporting
transactions period. Meanwhile the decision-making procedures of minor connected transactions were in
compliance with the relevant laws and regulations and our Articles of Association. The pricing of these
connected transactions is fair and reasonable without prejudice to the interests of the Company and its
shareholders particularly the interests of small and medium-sized shareholders.The Company carries out responsible marketing management in accordance with the Advertising
Law of the People’s Republic of China the Trademark Law of the People’s Republic of China and relevant
Responsible industry regulations and requires the provision of truthful accurate effective and easy-to-understand
marketing information about product features to customers. During the reporting period there were no incidents of
penalties from regulatory authorities for violations related to product and service marketing information
and labeling laws regulations or other voluntary regulations.For details of data compliance and intellectual property protection please refer to “Data Privacy Protection” and
“R&D Innovation Focus” chapters. For details of anti-corruption please refer to “Anti-corruption and IntegrityBuilding” in this chapter. For details of fair competition please refer to “Fair Competition” in this chapter.
023Sustainability and Corporate Governance / 2024 SUSTAINABILITY REPORT
Business Ethics
The Company has formulated the Business Conduct Guideline and the Management Procedures of CSR and Business
Ethics to regulate daily behavior. All employees are required to adhere to business ethics. The Company has
also issued specific regulations such as the Workplace Accountability Management System the Employee Discipline
Policy and the Gift Acceptance Policy to further restrict actions that violate laws regulations and internal rules
related to business ethics.During the reporting period the Company revised and updated its Business Conduct Guideline to reflect the
latest laws and internal management requirements. Enhancements included explicit opposition to all forms of
modern slavery and human trafficking strengthened data privacy protections conflict minerals prohibition
detailed fair competition and anti-corruption clauses and reinforced insider trading prohibition policies.* Anti-corruption and Integrity Building
The Company established the Integrity and Honesty Working Committee in 2018. The Chairman is the director
of the Committee and the directors of each department are the integrity ambassadors who are responsible for
coordinating and promoting the implementation of integrity-related work and reporting the work progress to
the Board of Directors on a regular basis.The Company has formulated the INOVANCE Anti-fraud Whistleblower System to standardize the management
of anti-corruption reporting set up an anti-corruption whistleblower hotline and email and promoted them
through the Company’s official website “Integrity INOVANCE” official WeChat account posters and other
ways to establish accessible anti-corruption whistleblowing channels and to ensure fair effective and
timely handling of any potential corruption incidents. Additionally through its Incentive Plan for Anti-fraud
Whistleblowers the Company encourages employees suppliers and other partners to participate in anti-
corruption supervision. The Audit Department as the unit responsible for receiving anti-corruption leads
and whistleblower reports conducts anti-corruption audits based on the provided information to ensure the
accuracy independence and fairness of the investigation results. Employees found violating anti-corruption
and integrity rules are subject to disciplinary actions under the Workplace Accountability Management System
and Employee Discipline Policy including D-rating in performance evaluations termination of labor relationship
restitution of improper gains or compensation for losses. For acts suspected of violating laws or constituting
crimes the Company will legally transfer the case to judicial authorities for handling. During the reporting
period the Company received 18 reports of anti-corruption clues with a 100% resolution rate for complaints
and reports.The Company adopts a “zero tolerance” approach towards corruption and commercial bribery promoting
responsible governance through the construction of an anti-corruption system and the cultivation of a culture
of integrity. Anti-corruption regulations for employees are included in the internal business ethics guidelines.For suppliers these requirements are included as standard clauses in the Supplier Management Contract. During
the reporting period the Company was not penalized by the competent authorities for violations of anti-
corruption anti-bribery anti-extortion or anti-fraud laws and regulations.The Company continuously strengthened anti-corruption and integrity education for its employees through
internal promotions integrity training and the promotion of Integrity Commitment Letter and other activities
and methods and promoted the construction of integrity culture. During the reporting period the Company
conducted integrity-related publicity and training for directors senior management and employees with a
total of 1220.17 hours of training.
024* Fair Competition
The Company strictly complies with the Law of the People’s Republic of China Against Unfair Competition and
other relevant regulations in its operating regions advocates fair competition prohibits malicious defamation
misleading statements or insinuations against competitors explicitly bans monopolistic practices and
rigorously reviews mergers and acquisitions to ensure fair and just market order. During the reporting period
the Company did not receive any administrative penalties for acts of unfair competition.Whistleblowing Procedures and Whistleblower Protection
Whistleblower Handling Procedures
Initiate investigations Hold relevant personnel Responsible departments
upon receiving and departments carry out rectification of
whistleblower reports accountable internal control issues
The Company strictly protects the personal information of whistleblowers prohibits the disclosure of
whistleblower identities and forbids any form of retaliation. Individuals found to be disclosing whistleblower
information or retaliating against whistleblowers will be seriously dealt with.Compliance Training
The Company regularly organizes all employees to study relevant systems such as the Business Conduct
Guideline. Specialized training is provided for key personnel in the process to require all employees to comply
with the code of business ethics. Additionally we conduct regular and specialized compliance training for all
employees and continuously improve the compliance awareness of the management and employees through
publicity training examination and other methods.
025Empowering Decarbonization / 2024 SUSTAINABILITY REPORT
Empowering Decarbonization
Addressing Climate Change
Climate Governance
Based on the sustainability governance framework the Company has established a system to address climate
change clearly defined roles and responsibilities at each organizational level to enhance the proactiveness and
continuity of climate action and ensure the efficient implementation of related initiatives.Organizations at Each Governance Level
*Review and make decisions on the Company’s climate change strategy
goals and major matters.Board of
Directors *Monitor and management of the overall work related to climate change.*Supervise the Company’s climate-related information disclosure.*Review the progress of climate action quantified performance and goals
achievement status.*Review related policies of climate and energy and provide guidance on
EMT relevant budgeting plans.*Provide necessary resources and guidance for climate actions to relevant
executive departments.*Assess the Company’s climate risks and opportunities and formulate
corresponding management measures.*Report routine work matters to EMT periodically and present an annual
climate work summary to the Board of Directors every April along with
Sustainability submission of the annual sustainability report for Board review.Committee
*The Sustainability Office is established to identify and analyze climate risks
and opportunities provide guidance on climate actions promote and
publicize work on climate change response and track the implementation
of specific matters by relevant executive departments.Departments
business *Implement the specific work plans to address climate change.divisions and
subsidiaries
026Climate Strategy
As a high-tech enterprise in industrial automation and new energy INOVANCE recognizes that its R&D
procurement production and sales activities as well as the application of its products and solutions at
customer sites are closely related to climate change. The Company understands that climate change poses
both risks and opportunities for its development.Every year the Company conducts an assessment of climate risks and opportunities updates the list of risks
and opportunities and refines it through internal discussions and external research. Detailed strategies are then
developed to address these risks and opportunities.Climate Risk Matrix
Risk Sub- Potential Impact Value Chain Financial
Category category Impact Analysis Timeframe Stage Impact Addressing StrategyAffected
We develop emergency
Extreme weather
response plans for major
events such as
disasters and emergencies
typhoons and
such as typhoons floods
floods may damage Short-term
and snowstorms establish
buildings at operating medium- Own Revenue↓
extreme weather warning
sites affecting term long- operations Asset value↓
systems and raise factory
normal production term
foundation levels in new
operations and
Acute risk plant construction to possibly triggering
address risks from heavy
safety incidents.rainfall and flooding.We establish flexible
Extreme weather may
Short-term office production
cause supply chain Supply Chain
medium- Revenue↓ and transportation
disruptions affecting Product
Physical risk term long- mechanisms and promote normal production delivery
term diversified supplier
and delivery.initiatives.Rising sea levels may We implement the
affect the normal multi-site production
Operating
operation and Own strategy and optimize site
Long-term cost↑
production of the operations selection for new facilities
Asset value↓
Company’s coastal to reduce environmental
facilities. dependency.Chronic risk We optimize energy
management systems
Global temperature promote energy-saving
Short-term
rise may increase projects and develop and
medium- Own Operatingthe Company’s implement the “Centralterm long- operations cost↑
cooling and energy Cooling Station AI Smart
termconsumption costs. Control” system to
improve air conditioning
system efficiency.Note:Definition of the impact timeframe: Short-term means 0 to 3 years; medium-term means 3 to 5 years; long-term means 5 to 30 years.
027Empowering Decarbonization / 2024 SUSTAINABILITY REPORT
Value
Risk Sub- Potential Impact Chain Financial
Category category Impact Analysis Timeframe Stage Impact Addressing Strategy
Affected
We develop internal
Public health
response plan for public
incidents caused Own No
health incidents such
by climate change operations substantial
Physical risk Chronic risk Long-term as major infectious
may affect the Supply short-term
diseases and make
company’s normal Chain impact
preparation for
production.medicines and supplies.We establish and
Strict requirements improve information
Short-term No
for climate- Own disclosure systems
medium- substantial
related information operations in accordance with
term impact
disclosure regulatory requirements
at operation locations.Policy and Domestic and
legal risk international GHG We promote emission
regulations such reduction initiatives
as carbon footprint Own increase the share of
Medium-
control on exported operations Operating renewable energy
term long-
products impose Product cost ↑ and improve emission
term
higher requirements sales management at the
on corporate organizational and
emission reduction product levels.and management.We enhance product
Customers prefer
R&D to continuously
green and low- Own
Transition improve green and carbon products operations
risk Market risk Long-term Revenue↓ low-carbon features thus raising the Product
and reduce the carbon
bar for supplier sales
footprint throughout the
cooperation.product life cycle.We improve R&D
Energy-saving and Revenue↓ management systems
carbon reduction Medium- Operating for energy-saving
Technology Own
technology falls term long- cost↑ and carbon reduction
risk operations
behind market term Financing technologies and keep
demands. difficulty↑ pace with technological
advancements.We place importance
on the Company’s
Negative climate- compliance with
related publicity climate-related
Revenue ↓
Reputational may damage Product regulations and
Long-term Financing
risk the Company’s sales improve monitoring
difficulty↑
reputation and and management
affect product sales. mechanisms for
negative public
opinions.
028Climate Opportunity Matrix
Type of Potential Impact Impact Value Chain Financial
Opportunities Analysis Timeframe Stage Affected Impact Addressing Strategy
Energy conservation and
carbon reduction have We enhance product
become key development green and low-carbon
Short-term
Changes in trends across industries features through R&D
medium-term Product sales Revenue↑
market demand leading to increased to expand customer
long-term
demand for green and base and seize market
low-carbon products and opportunities.solutions.Major domestic and
We continuously improve
international customers
product green and low-
are raising green and
Raised customer carbon attributes reduce
low-carbon requirements Medium-term
market entry Product sales Revenue↑ emissions from production
for suppliers giving long-term
threshold operations and ensure
competitive advantages
emissions information is
to leading enterprises in
verified and disclosed.supplier selection.As reducing fossil fuel
consumption and
increasing renewable
We provide more efficient
energy use have become
Structure products and solutions
social and industrial
Adjustment tailored to customer pain
consensus the Company’s Short-term Product sales Revenue↑
of Energy points in the new energy
core products and
Consumption sector supporting the
solutions will help address
clean energy transition.key challenges in the
development of new
energy sectors.Our new production
We enhance climate bases are constructed
Building climate resilience to avoid or Operating 100% in accordance with
Long-term Own operations
resilience reduce potential financial cost ↓ green factory standards
losses. to enhance climate risk
resilience.The Company actively
Climate-related participates in major
Improved ESG management systems Financing ESG rating programs to
Medium-term Own operations
ratings contribute to improved cost↓ improve performance and
ESG ratings. responsiveness aiming for
higher ratings.
029Empowering Decarbonization / 2024 SUSTAINABILITY REPORT
Climate-related Transition Strategy
Through annual assessments of climate risks and opportunities the Sustainability Committee and Sustainability
Office formulate and update addressing strategies and submit them to EMT and the Board of Directors which
makes final decisions on strategic direction and resource allocation.Based on the 2024 results of climate risk and opportunity identification and analysis the Company has
developed its climate transition strategy in two dimensions to respond to climate risks and seize green
opportunities.Climate Risk Response: Strengthen green Opportunities in Clean Technology: Actively
operational practices fulfill GHG emission develop products that deliver energy-saving
reduction commitments promote green supply and efficiency-enhancing effects and meet the
chain development and continuously improve needs of a green and low-carbon society and
the green supply chain management platform. create green low-carbon solutions that are
automated digital and intelligent for different
application scenarios.Progress of and Future Plans for Climate-related Transition
In operations the Company continuously diagnoses energy use to identify energy-saving opportunities and
advances production and operational optimization and energy-saving retrofit projects. The Company plans to
pilot the purchase of carbon credit products such as green electricity green certificates and CCERs and to
scale up procurement around its projected carbon peaking year.In supply chain management the Company has analyzed the low-carbon management status of key suppliersdeveloped initial emission reduction targets and action plans and incorporated “carbon peaking and carbonneutrality” criteria into supplier performance evaluations as bonus items.In terms of opportunities in clean technology the Company continued to invest in the research and development of
controllers motors powertrains and power supply
products for new energy vehicles integrated
digital energy management solutions including the
“Central Cooling Station AI Smart Control System”
and the “Digital Air Compression System” and ultra-
high-efficiency motor products and energy storage
products during the reporting period supporting
the green and low-carbon transformation across
the entire industry chain.
030Climate Resilience
INOVANCE conducts annual climate resilience assessments using both qualitative and quantitative methods.Qualitative analysis identifies types and potential impacts of risks and opportunities while quantitative analysis
estimates their expected impact on financial position performance and cash flow.Key uncertainties considered include:
Physical climate impacts: Frequency
Policy and regulatory changes: National
and intensity of extreme weather
commitments under the Paris Agreement
events temperature changes sea level
and their changes and updates to ESG
rise and public health incidents.compliance requirements.Market and technological changes:
Supply chain resilience: Uncertainty
Customer behavior changes R&D
around whether key suppliers can achieve
investment and outcome uncertainties
GHG emission reduction targets.renewable energy adoption etc.Stakeholder expectations and behavior: Financial impacts: Accuracy of climate-
Shifts in customer and investor expectations related financial impact quantification
regarding climate response due to market and uncertainty in the outcomes of green
conditions and uncertainty in supplier and low-carbon technology investments.cooperation and capability in executing
climate-related requirements.Based on assessment results the Company has strong climate resilience in the short medium and long term:
Operational carbon neutrality: The Company is committed
Physical risk response: The Company has formulated to achieving operational carbon neutrality by 2050. Over
emergency response plans for various types of disasters to the next 30 years it plans to continuously invest in low-
ensure the continuity of its production and operations. carbon technology research and development as well as the
acquisition of clean facilities while also introducing carbon
Green and low-carbon products: The Company continuously
capture and carbon sink projects as appropriate to offset
develops products that promote efficiency conservation
remaining emissions.and align with the needs of society’s green and low-carbon
transition effectively meeting customer demand for sustainable Zero-carbon supply chain: The Company continues to
products and solutions. engage in technical collaboration with key suppliers to jointly
promote the development of a zero-carbon supply chain.Short-term Medium-term Long-term
Low-carbon operations: The Company is committed to peaking operational carbon emissions by 2028 and will continue to advance
initiatives such as improving energy efficiency increasing the share of renewable energy use managing product carbon footprints and
developing a green supplier management platform to achieve this goal.Low-carbon supply chain building: The Company aims to reduce GHG emission intensity of key suppliers by 30% from 2021 levels by
2030 through supplier assessments technical support and training to help suppliers achieve their emission reduction targets.
Seizing opportunities in clean technology: The company ensures and continuously strengthens its R&D investment in areas such
as new energy vehicles high-efficiency motors energy storage products and digital energy sectors to seize opportunities in green
transformation.
031Empowering Decarbonization / 2024 SUSTAINABILITY REPORT
Risk Management
Each year INOVANCE reassesses its climate impacts risks and opportunities based on changes in external
environments company strategy and business models updating its climate risk and opportunity matrix
accordingly. The Company continues to optimize its response strategies and improve the climate transition
plan The Company also conducts annual climate scenario analyses to assess its adaptability ensuring it has
sufficient resources and capabilities to respond to short-term medium-term and long-term climate risks while
capturing climate-related opportunities.Climate risk management has been integrated into the Company’s overall risk management process with
comprehensive climate risk assessments and management conducted across all business operations covering
raw material and equipment procurement production sales and project investment activities.Metrics and Goals
The Company actively supports China’s “3060” goals and promotes green development within itself and
across the industry. It has set “2850” and “3030” carbon reduction goals.“2850”Goals “3030”Goals
To achieve operational carbon peaking by 2028. To reduce major suppliers’ GHG emission
and operational carbon neutrality by 2050. intensity by 30% compared to 2021 by 2030.Since 2021 the Company has conducted annual GHG inventory to monitor the progress of carbon reduction.This year the Company conducted a GHG inventory of the organizations included in its consolidated financial
report using ISO 14064?2018 and the GHG Protocol. A third-party agency was engaged to verify the GHG
emission data and issue a verification statement.Emission Scope Unit 2024 2023 2022
Scope 1 Direct emissions tCO2e 4091.56 1807.90 1601.90
Scope 2 Indirect emissions tCO2e 148705.14 125602.71 82155.14
Scope 3 Other indirect emissions tCO2e 7848603.14 / /
Total GHG emissions from operation tCO2e 152796.70 127410.61 83757.04
tCO2e per RMB million of GHG emission intensity in operation
revenue 4.13 4.19 3.64
Note：
1.For the calculation of Scope 2 Indirect emissions GHG emissions from purchased electricity in 2024 are calculated based on the carbon
dioxide emission factors for each regional power grid as outlined in the Ministry of Ecology and Environment’s Announcement on the Release
of CO2 Emission Factors for Electric Power in 2022. Data for 2022 and 2023 have been corrected accordingly.
2.Due to significant changes in the methodology for calculating Scope 3 emissions in 2024 the Scope 3 data for 2024 are not comparable to
previous years. To avoid misleading report readers the previous year’s data is marked with a “/”.
032Total GHG Emissions Reduction Practice
INOVANCE has implemented a series of GHG reduction actions aligned with the “2850” and “3030”
goals. Core initiatives include building and certifying energy management systems at major energy-
consuming sites establishing an energy and carbon emission management platform continuously advancing
operational optimization and energy-saving retrofit projects raising standards for plant construction and
promoting energy conservation and emissions reduction among upstream suppliers to ultimately accelerate
the achievement of emission reduction goals across the entire value chain. (For details please refer to
“Strengthening Energy Management”.)
Operational
Carbon Neutrality To achieve operational carbon peaking by 2028 and operational carbon neutrality by 2050
Goal (“2850”)
Base
Interim Goals Indicators 2028 2030 2050
Year
≥25%≥30%
Energy efficiency improvement rate:
improvement improvement Increase in energy use efficiency relative 2021 ——
in energy in energy
to the baseline year
efficiency efficiency
Energy management system coverage
rate: Proportion of total energy
≥80% coverage rate of energy management
Energy efficiency consumption by certified units under
——
systems from 2028
improvement ISO 50001 relative to the Group
’s total
energy consumption
Comprehensive energy management
platform coverage rate: Proportion of
energy consumption by units using the ≥80% coverage rate of the comprehensive ener-
——
comprehensive energy management gy management platform from 2028
platform relative to the Group’s total
energy consumption
Proportion of renewable energy use: ≥10% ≥20%
Energy structure Proportion of renewable energy proportion proportion
————
optimization consumption to the Group’s total of renewable of renewable
energy consumption energy use energy use
Supply Chain
Emission To reduce major suppliers’ GHG Emission Intensity by 30% compared to 2021 by 2030 (“3030”)
Reduction Goal
Baseline
Interim Goals Indicators 2026 2028 2030
Year
Continuously
Include GHG
assessment Set supplier
emission
performance GHG emission
2021 intensity
GHG emission Average GHG emission intensity of evaluation intensity
of major
intensity reduction major suppliers and increase reduction as
suppliers in
weight of an exclusionary
performance
related criterion
assessments
metrics
Empowerment for Conduct annual GHG emission surveys of major
Frequency of empowerment for
supplier emission —— suppliers and provide emission reduction
supplier emission reduction
reduction guidance training and technical support
033Empowering Decarbonization / 2024 SUSTAINABILITY REPORT
Strengthening Energy Management
Energy Management Strategy
Improving the energy management system optimizing the energy mix and continuously implementing energy-
saving and emission reduction projects are critical for INOVANCE to realize low-carbon production and climate
targets. The Company has formulated management policies including the ISC Energy-Saving Management
Specification the Green Factory Construction Specification and the ISC Organizational Energy Consumption Accounting
Specification and set specific energy-saving targets measured by energy consumption per unit output value.The Company continues to increase renewable energy usage. In the reporting year total renewable energy
consumption1 reached 19624.75 MWh accounting for 6.91% of the Company’s total energy consumption.The associated reduction in GHG emissions was 11325.95 tCO?e. By the end of the reporting period the total
installed capacity of renewable energy power generation equipment within the Company’s operational scope
reached 18.83 MW of which 10.20 MW was newly installed distributed photovoltaic (PV) generation capacity in
the reporting year 2.The Company continues to promote the establishment and certification of energy management systems acrossits business entities. During the reporting period Suzhou INOVANCE was awarded the title of “2024 GreenFactory in Jiangsu Province” by the Industry and Information Technology Department of Jiangsu.Note：
1. Total renewable energy consumption includes green electricity purchased via green certificates self-generated and consumed
electricity from Company-owned renewable energy facilities and PV electricity purchased at preferential rates from leased rooftop
space.
2. Total installed capacity of renewable energy and newly installed distributed PV generation capacity include both Company-owned
and EMC-model rooftop installations.Annual Key Performance
Energy saved from new energy saving projects Proportion of Renewable Energy Use
1458755 kWh/year 6.91%
Total GHG Emissions Reduced 1 Total Energy Consumption Intensity
12170.82 tons of standard coal per tCO2e 0.94 RMB million of revenue
Note：1. Total GHG emissions reduced = emissions reduced from renewable energy use + emissions reduced from new energy
conservation projects.
034Advancing Energy Conservation and Emission Reduction
INOVANCE upholds the energy management philosophy that “the greenest electricity is the electricity saved”.In addition to continuously increasing renewable energy use we have implemented diverse technical energy-
saving and management optimization projects to further improve energy efficiency.Technical Energy-saving Projects implemented during the reporting period include:
Investment Estimated
Estimated
Project GHG Emissions
Category Introduction Amount Amount of
(RMB 1000 ) Energy Saved
Benefit Reduced
(kWh/year) (RMB 1000 / (tCO ? e/year)year)
The company carried out an energy-saving lighting
Energy-saving retrofit at the Suzhou INOVANCE
’s warehouse by replacing
lighting retrofit halogen lamps with LED sensor lights to improve lighting 230.9 309461 247.6 185.00 efficiency and provide illumination as needed effectively
reducing energy consumption in the warehouse lighting.The Company expanded the application of thermal
Expansion of air insulation air curtains at the logistics dock area of Suzhou
curtain use in logistics INOVANCE reducing heat/cooling loss and lowering the 22.8 9827 7.9 5.87
energy consumption of the air conditioning system.Suzhou INOVANCE added insulation to exhaust pipelines
Insulation of exhaust carrying residual heat in workshops significantly reducing
pipelines uncontrolled heat dissipation and lowering the energy 11.2 17280 13.8 10.33
consumption of the air conditioning system.UV curing furnace Suzhou INOVANCE introduced LED UV curing technology
upgrade to replace high-energy mercury lamp systems reducing 208.0 190080 152.1 113.63 energy use of curing furnaces.The air compressor system in Area B of Suzhou
INOVANCE was upgraded from independent operation
Air compressor to interconnected hardware setup with intelligentlinkage upgrade management enabled via INOVANCE’s proprietary “Digital 198.0 680000 544.0 406.50Air Compression System” resulting in significant energy
savings.Paint spraying Yueyang INOVANCE optimized its spraying process to
process optimization reduce the number of coating applications thereby / 35100 28.0 17.20 lowering energy consumption.Oven efficiency Yueyang INOVANCE improved the drying process
improvement significantly reducing preheating and curing time thus / 7007 5.6 3.43 decreasing energy use in drying and curing stages.Yueyang INOVANCE purchased inverter air compressor
Use of energy- units equipped with the Company’s in-house AC drives
efficient equipment effectively improving gas-to-electricity ratios and / 210000 168.0 102.90
significantly increasing energy efficiency.Total 670.9 1458755 1167.0 844.87
Note：
1. Estimated project benefit refers to reduced energy costs due to energy savings calculated based on RMB 0.80 per kWh.
2. Reductions in GHG emissions are calculated based on the carbon dioxide emission factors for each regional power grid as outlined in the
Ministry of Ecology and Environment’s Announcement on the Release of CO2 Emission Factors for Electric Power in 2022.
035Empowering Decarbonization / 2024 SUSTAINABILITY REPORT
Management Optimization Projects Implemented during the Reporting Period
Category Measures Progress and Results
We advanced energy management in a systematic
manner to ensure legal compliance conducted
Energy management energy audits identified opportunities for energy Suzhou INOVANCE passed ISO 50001:2018 Energy Management System
system building efficiency improvement continuously enhanced certification during the reporting period.energy management efficiency and raised
employee awareness of energy conservation.We revised the Green Factory Construction
Specification based on the Evaluation Table of
Refinement of Green Factory Indicators issued by the Ministry
The construction specification has been applied during the new
standards for new of Industry and Information Technology and
infrastructure construction projects of Nanjing INOVANCE Jinan
infrastructure proposed specific construction requirements
INOVANCE and Xi’an INOVANCE.construction for new factories from intensive land use non-
toxic raw materials clean production resource
recycling and low-carbon energy.Nanjing INOVANCE and Changzhou New Energy As of the end of the reporting period the number of manufacturing
applied the Company’s self-developed energy centers applying the system reached four indicating continuous
management system. enhancement in comprehensive energy management.By enabling data integration with the MES system the platform has
facilitated energy consumption monitoring and analysis at the single-
New energy consumption monitoring and analysis product level providing data support for manufacturing cost and product
functions for single products. carbon footprint accounting while also helping to identify opportunities
and potential for reducing manufacturing energy consumption and
Application and improving efficiency.optimization of the
comprehensive
energy management Yueyang INOVANCE has implemented automated daily reporting of key
platform energy consumption data streamlining energy management processes
New automated energy data reporting function. and ensuring that management personnel can promptly access and
analyze data providing strong data support and systematic assurance for
energy management.This system uses sensing technologies to detect the real-time needs
for air conditioning and lighting in office spaces applying management
The Perception-Based Behavior Control System
strategies tailored to different space types to minimize waste without
for Air Conditioning and Lighting was piloted.compromising user comfort. As of the end of the reporting period the
system has been piloted in selected areas at Suzhou INOVANCE.The Company routinely conducts tour In 2024 the Company conducted 28 energy-saving tour inspections.Energy-saving tour inspections targeting improvements in energy For identified instances of energy waste the Company issues internal
inspections consumption related to daily office operations and notifications and takes corrective actions to ensure proper implementation
manufacturing activities. of the improvements.We conducted a total of 12 training sessions on topics related to carbon
peaking and carbon neutrality were conducted with 511 trainees in
total who were mainly team leaders from various manufacturing centers
and other personnel involved in energy-saving management.Energy-saving The Company conducted various energy-saving
training training sessions. One energy-saving training session was delivered to newly recruited
graduates.These targeted energy-saving training programs enhanced employees’
awareness and skills related to energy conservation.
036Innovative Green Products
In the context of the global green and low-carbon transition INOVANCE integrates ecological and
environmental protection values into product innovation exploring potential for resource intensive
utilization in design and manufacturing enhancing energy-saving performance reducing resource
consumption and actively practicing the circular economy model.Product Green Design
INOVANCE adheres to the principle of green design with the INOVANCE Product Identity Design Guidebook
published as a fundamental guideline for product design. The guidebook explicitly states that product designshould follow the principles of “material conservation process simplification packaging minimization andfunctional modularization” to comprehensively reduce GHG emissions and resource consumption throughout
the product lifecycle further enhance the environmental protection and sustainability of products.Product Design Principles
Optimizing product design to reduce product weight or volume with a
Material
focus on selecting green and renewable raw materials thereby reducing
Conservation
material consumption.Case: MD630 Series General-purpose AC Drives
The MD630 INOVANCE ’s new generation of global
general-purpose AC drives features innovative cooling
technologies and an advanced minimum current
algorithm. Compared to the previous generation it
achieves a 10% reduction in current under equal load
20% less copper loss in motors and an average volume
reduction of 30% effectively saving cabinet space
and reducing product weight and natural resource
consumption. All models in the MD630 series meet the IE2
energy efficiency level.
037Empowering Decarbonization / 2024 SUSTAINABILITY REPORT
Case: HD3X Series Three-level Medium-voltage AC Drives
The HD3X series adopts a three-level topology
and common DC bus design. Compared to
cascaded AC drives of the same specification
the HD3X signif icantly reduces product
volume and weight easing space and load
requirements while boosting energy efficiency
by 2% to 2.5% lowering the product usage
cost throughout the entire life cycle for users.This product has been successfully applied in
several major projects.Streamline packaging size save packaging materials gradually replace
Packaging
disposable packaging materials with recyclable or reusable materials and
Minimization
minimize packaging waste.Case: Paper Instead of Wood and Plastic
The Company is phasing in paper materials to replace wood and plastic in product packaging
reducing negative impact on the environment. By the end of the reporting year about 20% of
products on sale used paper-based packaging and nearly 50% of newly developed products adopted
such solutions.Functional Adopt compact layouts and modular thinking to streamline components
Modularization and reduce resource consumption during production.Case: IO Product Modular Design
The Company reduced material use by reusing
and simplifying internal structures optimizing PCB
layout and component installation. For instance
in the IO product enhanced modular design
level and material reuse rate led to breakthrough
thin-wall designs that reduced product weight
and plastic consumption. This measure alone is
expected to save 27 tons of plastic annually.
038Case: Mold Standardization
The Company has continuously strengthened the standardization of mold design. By enhancing
the standardization degree of mold bases the reuse rate of molds has been increased and
the demand for newly opened molds has been reduced. Through the modularization and
platformization of mold development the proportion of reusing existing structural designs
and matching molds in the process of new product development has been increased thereby
reducing the number of newly opened molds. This approach saved an estimated 12.2 tons of
stainless steel in 2024 mold development.Practicing Circular Economy
The Company consistently upholds the concept of circular economy comprehensively enhances resource use
efficiency and achieves resource recycling and sustainable economic growth. Through material substitution
reduction recycling and reuse and improved management efficiency the Company gradually explores and
promotes optimal solutions that balance economic and environmental benefits.Material Substitution
Case: Plastic is Used to Replace Sheet Metal in the Elevator ARD Emergency Power Supply
In 2024 the Company replaced the sheet metal material in the elevator ARD emergency power
supply product with high-strength engineering plastic. While ensuring structural strength and
product quality this initiative reduced product weight by 30% thereby lowering the consumption
of natural resources. At the same time as plastic can be formed through injection molding it
not only reduces the number of components and assembly procedures but also eliminates the
environmental impact of the painting process required for sheet metal.Material Recycling and Reuse
Case: INOVANCE Automotive Increases Aluminum Recycling Rate
In 2024 INOVANCE Automotive set a target of over 40% utilization rate for recycled aluminum.By the end of the reporting period the utilization rate of recycled aluminum at INOVANCE
Automotive had increased to 55%.Management Efficiency Enhancement
Case: Lean Management to Improve Automation and Digitalization
In the reporting year the Company carried out lean management focusing on QCD (Quality Cost
and Delivery) aiming to eliminate waste and enhance production efficiency and process quality.The Company established a capacity planning mechanism to review the production resources of
each manufacturing center monthly. Based on client demand we allocated personnel equipment
and site resources reasonably and invested in value-added projects to ensure effective resource
utilization and avoid waste. At the same time we actively promoted digital transformation by
introducing tools such as Andon systems and SFM digital systems to achieve real-time monitoring
and analysis of production data thereby improving management efficiency and decision-making
accuracy and supporting efficient on-site operations. In 2024 through increasing automation rates
lean improvement process optimization and energy-saving technological upgrades the Company
enhanced both production efficiency and resource utilization.
039Empowering Decarbonization / 2024 SUSTAINABILITY REPORT
Jointly Building a Net-zero Future
Achieving the dual-carbon goals and promoting a net-zero future depends on cooperation and
collaboration across the entire society. INOVANCE insists on innovation in products and solutions. On
the one hand we implement the requirements of “Four Conservations and Two Enhancements” to
continuously enhance the overall competitiveness of our products and solutions. On the other hand
we remain agile in sensing and capturing the demand for green and low-carbon transformation across
industries creating green and low-carbon value for customers and users.Annual Key Performance
Newly avoided GHG emissions Proportion of revenue derived from clean
tech-related products and services
14447904 tCO?e/year 59.63%
“Two Enhancements” “Four Conservations”
Enhance production efficiency and product quality Conserve energy materials labor and space
In 2024 the Company’s products and solutions continued to be successfully applied across multiple sectors including
industry transportation and power supporting the green and low-carbon transformation of various industries.The Company continuously iterates its products and solutions to provide efficient
Industrial Sector
energy-saving and environmentally friendly offerings to clients across industrial sectors.Case: Upgrading Vertical Mills in the Steel Industry
In 2024 subsidiary Dalian Zhiding partnered with Angang Green
Source to apply its newly developed 3 MW high-voltage semi-
direct-drive vertical mill drive system to actual production scenarios
at Angang Green Source. This filled a gap in the application of
permanent magnet motors in slag micropowder production
significantly improving equipment production efficiency and product
quality enhancing energy savings and reducing system failure rates.The system adopts INOVANCE’s frequency conversion intelligent
speed regulation technology which precisely controls motor speed according to production needs effectively avoiding
quality instability issues caused by speed fluctuations in traditional motors. In addition the system’s coaxial drive
low-speed gear design significantly improves operational efficiency achieving an annual energy saving rate of over
10% with notable energy-saving and emission-reduction effects. The semi-direct-drive permanent magnet design
integrates the motor reducer and gear bearing into a “three-in-one” drive system simplifying the transmission
structure by 50% reducing failure rates by 80% and shortening fault detection and maintenance cycles by 95%.
040Case: MV33 Series Low-voltage Permanent Magnet Synchronous Industrial Motors
INOVANCE’s MV33 series is a new generation of flat-wire permanent magnet
synchronous motor featuring ultra-high energy efficiency compact design high
reliability and modular structure. This series adopts Vplus-hairpin flat wire technology.Compared to commonly used round wire this design improves slot fill rate by 20%
significantly enhancing power density reducing line energy loss and achieving
compact size and high energy efficiency. The product can reach a maximum energy
efficiency level of “IE6” [Note] and achieves “Double 90” high-efficiency zone
performance i.e. efficiency above 90% in 90% of the operating range. Under the
same conditions its power loss is over 20% lower than that of motors meeting the
highest IE5 standard. Furthermore the product significantly reduces its physical Note:
volume and the consumption of raw materials. For the same power output the MV33 The “IE6” efficiency level is an internal
series motor is 20% to 40% smaller than IE3 efficiency asynchronous motors reducing estimate and not an official standard
intended to indicate performance
the installation space required and promoting equipment miniaturization thereby significantly exceeding the IE5
further decreasing consumption of natural resources. efficiency level.The Company continues to make efforts in the transportation sector with innovative
Transportation
green products and solutions widely applied in transport vehicles and infrastructure
Sector
helping the transportation industry move toward green and intelligent development.Case: Innovative Onboard Power Supply Solutions for New Energy Vehicles
Onboard vehicle-mounted charging system are evolving toward reduced space occupancy higher charging
efficiency greater reliability and lower incidence of safety issues. The subsidiary INOVANCE Automotive
continuously launches high-power-density high-efficiency highly reliable and highly safe power supply products
to meet market demand. INOVANCE Automotive’s 6.6 kW (OBC) + 3 kW (DC/DC) integrated product reaches a
power density of 3.6 kW/L (including in-vehicle discharge) significantly enhancing power density. It supports
multiple charging/discharging and DC/DC efficiency configurations achieving a charging efficiency of 94% to 96%.The product uses components that meet full automotive-grade standards passing reliability tests equivalent to 15
years or 300000 kilometers (reliability > 99.7%). Its functional safety level reaches ASIL D with fully verified safety
performance. INOVANCE Automotive’s innovative onboard power solutions for new energy vehicles not only offer
higher quality reliability and safety but also contribute to improved energy efficiency and extended lifespan of
new energy vehicles supporting the green development of the transportation sector.
041Empowering Decarbonization / 2024 SUSTAINABILITY REPORT
The Company actively participates in the construction of new power systems
focusing on generation grid load and storage and innovates integrated multi-
scenario solutions to support the green and low-carbon transformation of the power
sector. Taking the energy storage business as an example by the end of the reporting
period the Company had cumulatively delivered over 15 GW of energy storage
products to the market covering multiple application scenarios including large-scale
Power Sector power station storage commercial and industrial storage and residential storage.Leveraging our deep expertise in power electronics control technology and digital
energy management we have developed energy solutions that cover all aspects of
generation transmission distribution and utilization. In 2024 the Company innovated
a commercial model for zero-carbon park solutions and collaborated with ecosystem
partners across the industry chain to provide customers with integrated services
including consulting design procurement construction and operation.Case: Industrial and Commercial Energy Storage Net-zero Solution for a
Client in Zhumadian Henan Province
The industrial and commercial energy storage project for a client in Zhumadian Henan Province is INOVANCE’s
first self-invested self-built and self-operated energy storage station. It also marks the Company’s first pilot
EPC-mode industrial and commercial energy storage project. The project centers on three sets of 100 kW/232
kWh integrated industrial and commercial energy storage cabinets which use liquid cooling for heat dissipation
and are connected to the grid distributed photovoltaics and charging pile systems. After commissioning
the project will reduce electricity costs for the owner improve power supply stability and renewable energy
consumption capacity and support the owner in continuously optimizing energy structure and progressing
with green and low-carbon transition.Cloud EMS
PV Inverter
PV Diesel Combiner Energy Storage Charging Pile Load
Module Generator Cabinet Cabinet
042
Grid
TransformerINOVANCE disclosed “Scope 4: Avoided GHG Emissions” for the first time in the 2023
ESG Report (for the definition of Scope 4 please refer to the Environmental Social
Scope 4: and Governance Report 2023) as a means of quantifying the energy-saving and
Avoided GHG carbon-reduction benefits of the Company’s products. In 2024 INOVANCE continued
Emissions to calculate both directly and collaboratively avoided GHG emissions resulting from
the different categories of products launched during the year based on actual
business conditions and further optimized the calculation methodology.Comparison of Directly and Collaboratively Avoided GHG Emissions
Scope 4 Category Directly Avoided GHG Emissions Collaboratively Avoided GHG Emissions
A facility or equipment after using INOVANCE’s
INOVANCE in synergy with its industrial partners
products or solutions does not significantly
has jointly contributed to a fundamental change
change its core feature or form but rather
Definition or substitution of a facility or equipment and such
produces notably less GHG emissions beyond
change or substitution has produced notably less
the value chain while fulfilling the same
GHG emissions beyond the value chain.functions.Directly avoided emissions = GHG emissions Collaboratively avoided emissions = GHG
of the original facility or equipment under emissions of the original facility or equipment
the baseline scenario - GHG emissions of the under the baseline scenario – GHG emissions
Calculation method
facility or equipment after using products of the new facility or equipment applying
and solutions of INOVANCE under the same INOVANCE’s products and solutions under the
scenario same scenario
Whether there is
any change in the
No Yes
core feature of the
equipment/facilities
Attribution of
avoided GHG All allocated to INOVANCE Partially allocated to INOVANCE
emissions
Accounting Boundary
Scope 4 Category Directly Avoided GHG Emissions Collaboratively Avoided GHG Emissions
GHG emissions generated by the equipment or facilities applying INOVANCE’s products during their
System boundary
use
Each facility or equipment equipped with Each substitute facility or equipment with
Functional unit
INOVANCE’s products equivalent functions
Time period From January 1 2024 to December 31 2024
For the methodology and allocation rules for calculating avoided GHG emissions please refer to the relevant
section of the Company’s Environmental Social and Governance Report 2023.
043Empowering Decarbonization / 2024 SUSTAINABILITY REPORT
According to incomplete statistical calculations the “Scope 4: Avoided GHG Emission” effects of the products
and solutions launched by INOVANCE in the market in 2024 are as follows:
Avoided GHG Emissions
Category Application Classification
(tCO? e/year)
Application of AC drive products across various industries including
air conditioners air compressors textile machinery lifting equipment 4700983
and fans and pumps
Application of hydraulic servo systems across various sectors including
485595
hydraulic stations bending equipment and forging equipment
Directly
avoided GHG Application of high-efficiency permanent magnet synchronous motors
emissions in industries such as fans and pumps injection molding machines 70698
textiles and rail transit
Application of regenerative AC drives across various industries
64064
including test benches large transmission equipment elevators etc
Power-related applications currently referring specifically to shore
20337
power systems
Application of wind power pitch control systems and yaw systems in
7413067
wind power generation equipment
Application of traction converters and asynchronous traction motors in
Collaboratively 7251 subways light rail and trams
avoided GHG
emissions Application of electric drive systems motors powertrains and vehicle- 460331
mounted charging systems in electric passenger vehicles
Application of electric drive systems in electric commercial vehicles 1225578
Total 14447904
Directly avoided GHG
emissions 4375424 5341677
tCO?e tCO?e
Collaboratively avoided
GHG emissions 4904111 9106227
tCO?e tCO?e
20232024
Since 2023 through innovation in products and solutions INOVANCE has cumulatively avoided 35944958
tCO?e of GHG emissions for society.
044Ecosystem Protection
INOVANCE pays close attention to the environmental impact of its production and operational activities.We have established and improved an environmental management system identified and mitigated
environmental risks and strictly controlled pollutant emissions in accordance with laws and regulations.We are committed to protecting the ecological environment and biodiversity at our places of operation
and promoting the development of sustainable cities and communities.Environmental Compliance Management
The Company and its subsidiaries have strengthened the construction of environmental management systems
regularly identify environmental risks and formulate emergency response plans for major risks. The Company
conducts internal audits and accepts third-party audits in accordance with ISO 14001?2015 requirements
continuously improving weak points in the management system. In 2024 one additional key operation
site (Yueyang INOVANCE) obtained ISO 14001 certification and several other key sites passed system
recertification. As of the end of the reporting period 66.67% of key operation sites had obtained ISO 14001
certification. During the reporting period the subsidiary Suzhou INOVANCE was awarded the honorary title of
“2024 Gold Medal Enterprise of the Suzhou Enterprise Self-Inspection and Self-Correction Service Platform”
by the Suzhou Municipal Bureau of Ecology and Environment.Pollutant Emissions Management
The Company strictly carries out business activities in accordance with the relevant laws and regulations of the
countries and regions where it operates. Internal policy documents such as the Hazardous Waste Management
System the Waste Management Procedure and the Occupational Health Safety and Environmental Monitoring and
Measurement Procedure have been issued. We collect and monitor waste emission data and collaborate with
professional third parties to properly dispose of various types of pollutants. We are steadily promoting emission
reduction and improving recycling and reuse rates.
045Empowering Decarbonization / 2024 SUSTAINABILITY REPORT
Collection and Monitoring Examples of Reduction Recycling
Emission Type Disposal Method
Process and Reuse
Sensor-activated water dispensers are
Sampling and monitoring Sewage is collected through
of wastewater quality is municipal pipelines and
used for domestic water and posters
Domestic sewage transported to municipal promoting water conservation are commissioned annually to a sewage treatment plants for displayed nearby to advocate water-third-party agency. disposal. saving behaviors and reduce domestic wastewater discharge.Waste gas is collected through Waste gas is disposed of We use water-based cleaning agents
Waste gas from sealed piping and its discharge
through waste gas treatment instead of solvent-based cleaning
is monitored annually by a facilities such as high- agents and solvent-free impregnating production third-party agency to ensure efficient filtration of dust and varnishes instead of solvent-based
compliance. adsorption of VOCs waste gas impregnating varnishes to reduce VOC using activated carbon. emissions.Industrial solid waste is properly
sorted centrally collected in Solid waste is entrusted to
General industrial workshops and then transported institutions with qualification to Packaging waste from product transfers
solid waste to general industrial solid waste conduct general industrial solid and shipping is reduced by using
warehouses for compliant waste disposal. recyclable or reusable containers.disposal.Hazardous waste is centrally
collected in workshops and Hazardous waste is entrusted to
Hazardous waste stored in a hazardous waste institutions with qualification to
We purify and recycle cleaning
warehouse in categorized zones conduct compliant hazardous wastewater through process
then legally transferred to third- waste disposal. improvements.party disposal organizations.Water Resource Utilization
In 2024 INOVANCE used the Aqueduct Water Risk Atlas developed by the World Resources Institute (WRI) to
assess water-related impacts at 23 operation sites. Based on water-related dependencies impacts risks and
opportunities the Company identified sites located in water-stressed areas and strengthened water-saving
management at those sites.The Company has always attached great importance to water conservation. The Company has developed
multiple water resource management initiatives and regularly monitors relevant indicators of water use. Water
meters have been installed at each subsidiary as a statistical unit and water usage data is collected regularly.For office areas only certified water-saving fixtures and equipment are permitted. Posters and awareness
messages are used to guide employees toward water-saving habits in their daily routines. For water used
in factories the Company requires newly built factories to plan and construct rainwater harvesting and
reuse facilities during the design stage. For existing factories the focus is on strengthening water recycling
infrastructure and water balance testing.Annual Key Performance
Water recycling rate 75.03%
046Biodiversity Protection
In 2024 INOVANCE conducted its first biodiversity impact assessment. The Company selected 12 key operation
sites in mainland China and assessed species distribution and proximity to protected areas within a 5 km radius
of each site using a biodiversity impact assessment tool developed by the Shan Shui Conservation Center and
the Peking University Center for Nature and Society.Species Impact Assessment
Within the 5 km radius of the 12 evaluated operation sites no critically endangered or endangered species
as defined by the International Union for Conservation of Nature (IUCN) nor any critically endangered
endangered or vulnerable species as listed in the Redlist of China’s Biodiversity nor any Class-I protected animals
under the Law of the People’s Republic of China on the Protection of Wildlife were found. Some key operation
sites evaluated are within 5 km of habitats of Class-II protected animals and animals on the List of Terrestrial
Wildlife Species with Significant Ecological Scientific and Societal Value. One vulnerable species was identified
within a 5 km radius of the subsidiary INOVANCE Automotive.Protected Areas Impact Assessment
Within a 5 km radius of eight evaluated key operation sites there are no national parks nature reserves World
Natural Heritage Sites or Ramsar Wetlands. Four sites are near nature parks with INOVANCE Automotive and
MJB each adjacent to two such parks. We will strengthen ecological monitoring and protection around these
sites in the future.Overall no significant biodiversity risks were identified within a 5 km radius of the evaluated key operation
sites. For species and protected area impact assessment tables please refer to Appendix 6.
047Focus on Customer Satisfaction / 2024 SUSTAINABILITY REPORT
Focus on Customer Satisfaction
INOVANCE adheres to the value of “Customer first” maintains a customer-centric service philosophy
focuses on customer satisfaction improves product quality enhances customer experience and helps
customers succeed.Annual Key Performance
Customer audit pass rate Customer issue resolution rate
100%94.60%
Quality training coverage rate for front-line employees
100%
Strict Product Quality Control
INOVANCE strictly complies with the Product Quality Law of the People’s Republic of China and the Regulations on
the Supervision and Management of Quality and Safety Responsibilities of Industrial Product Production Units amongother laws regulations and product-related standards. With the vision and mission of “Promoting IndustrialCivilization with Excellent Quality” and the guiding principle of “dual full cycle dual safety” we benchmark
against industry best practices focus on customer satisfaction implement zero-defect management across
the entire value chain and build a platform-based organizational capability centered on prevention to
comprehensively enhance the quality of our products solutions and services.Overall Quality Management Based on the current quality levels of different products set differentiated improvement goals
Goals with no less than 10% improvement.Target
Specific Target Indicators Target for the Reporting Period Progress Achievement
Status
Customer satisfaction Continue third-party satisfaction surveys; Third-party customer satisfaction score overall satisfaction increased year-on-year. increased by 1.11 points year-on-year Achieved
Customer issue resolution rate Customer and internal issue resolution rate > Customer and internal issue resolution rate > 92% 94.60% Achieved
Product failure rate Product improvement ≥ 10% Product improvement > 20% Achieved
Customer audit pass rate Customer audit pass rate: 100% Annual customer audit pass rate: 100% Achieved
048Product Safety Management
* “Dual Full Cycle Dual Safety” in ProductsINOVANCE places great importance on product safety management and promotes the concept of “dual fullcycle dual safety” —ensuring personal and property safety for customers and users across all circulation cycle
and the entire product lifecycle. During product design and development the Company identifies potential
safety risks based on different application scenarios and implements countermeasures to enhance intrinsic
safety from the source. Product safety and quality performance are incorporated into relevant departmental
and senior management performance evaluations.* Enhancing Product Safety Certification Requirements
This year the Company added new requirements for document control related to product safety certification
including specifications for technical documentation contents control methods consistency requirements key
component inspection for explosion-proof products supplier management (including key components and
service suppliers) and regulations on CCC certification and mark management.* Industrial Cybersecurity Development
INOVANCE’s products and systems strictly adhere to cybersecurity standards and specifications throughout
the design development integration and deployment stages to ensure secure and reliable products and
services for customers. During the reporting period the Company successfully obtained the IEC 62443-4-1
cybersecurity system certification highlighting its outstanding capabilities in industrial cybersecurity.* Product Environmental Substance Management
In 2024 the Company developed and implemented standards for managing environmental substances. These
standards apply to INOVANCE’s products and all constituent raw materials parts components auxiliary
materials consumables and packaging materials. Combining the requirements of the EU RoHS and REACH
directives the Company has strengthened product environmental substance management across the entire
process. As of the end of the reporting period there were no product recalls due to safety or health issues.Product Quality Management
Improving the Quality Management
System
In 2024 the Company continued to build and enhance
its quality management system by optimizing its
structure clarifying key quality management initiatives
and updating reward and punishment mechanisms to
improve overall management standards. The proportion
of key operation sites certified to ISO 9001?2015 reached
100% during the year.
049Focus on Customer Satisfaction / 2024 SUSTAINABILITY REPORT
* Optimizing Quality Management Structure
INOVANCE continuously optimized the business structure for quality management and adopted the "721"
principle for hierarchical quality management—resolving 70% of issues at the first level 20% at the second
level and 10% at the third level — to improve efficiency. Under this system EMT serves as the highest decision-
making body for quality management the management team is responsible for cross-department coordination
and resource support departments address internal quality issues and frontline teams respond quickly to
customer feedback and resolve on-site quality problems.The Company adopts a model of centralized group planning and localized management requiring subsidiaries
to follow the principle of “the same INOVANCE the same quality.” Throughout the product lifecycle the
Company defines quality roles at each stage to ensure quality control at every link. Quarterly quality meetings
are held to rank the achievement of quality goals and enhance management’s focus on quality performance. In
2024 the Company established a new product quality management team composed of professional R&D staff
to support quality assurance during the product development stage. The Company further clarified Customer
Quality Management (CQM) responsibilities and strengthened solution-oriented quality management for
customer-facing activities.* Clarifying the Direction of Quality Management
Based on actual business needs the Company has categorized quality management into physical quality
management and system quality management clarifying the overall direction of quality-related efforts.The Company identifies business requirements (including but not limited to customer
requirements Company strategy general industry quality management standards and system
requirements) establishes quality management master plans for each business module
(including quality requirements and elements) and sub-processes for quality domains. It
extracts business-adapted quality elements and fully embeds them into business activities.Quality is ensured through process chain activities thereby creating value. During the year
Physical Quality the Company collected quality management requirements across all stages of the product
Management circulation process and full lifecycle and conducted analysis and sorting of the requirements
for each stage.The Company focuses on the quality of system construction and requires the system to
fully support and enhance physical quality. This jointly drives the implementation of the
three major closed loops: from customer needs to customer satisfaction from strategy to
value creation and continuous improvement of the management system thus laying a solid
System Quality foundation for high-quality development.Management
* Updating Quality Reward and Penalty Mechanisms
This year the Company expanded the scope and lowered the thresholds of quality-related rewards to guide
and encourage all employees to practice a culture of quality. Regarding penalties for quality issues the
Company emphasized accountability in the reporting year to ensure effective implementation of the concept
that “business leaders are the first person responsible for quality.” By strengthening the leading role of
business leaders the Company promoted full employee participation in jointly improving product quality and
effectively implementing various quality management requirements.
050Product Lifecycle Quality Management
Product Safety and Quality Management at Different Life Stages
Stage Quality Control Initiatives Continuous Improvement Initiatives
· Integrates APQP and IPD applying automotive quality management
philosophies tools and methods to industrial product development to · The Root Cause Analysis team is responsible for targeted
enhance the quality of new industrial products. improvements to design issues from the previous year.Product · Ensures that the product development stage meets regulatory and · The NPI Quality organization strengthens quality management
development other product safety standards sets dual safety red lines and enhances during the new product introduction process.product-related safety requirements. · Promotes product quality improvements from the source
· Conducts quality reviews at various stages of research and development through design enhancements.to ensure the success rate and efficiency of product design and development.· Categorically and hierarchically carries out supplier introduction and
quality management work extending quality requirements to multi-tier · The SQE organization conducts supplier quality assessments evaluating incoming materials quality services 8D reports and
Material suppliers. unauthorized changes.procurement · Conducts incoming inspection activities for different suppliers including
regular inspection external inspection exemption and stringent · Organizes special improvement competitions and reporting
inspection. meetings for suppliers.· Promotes intelligent and digital transformation at multiple sites · The QCC improvement team continuously addresses and tracks
advances MES development and ensures precise traceability from quality issues during production.raw materials to finished products and from suppliers to customers · A Lean Improvement Organization was established to promote
maintaining production quality consistency and gradual improvement.Manufacturing refined management of the manufacturing environment and · Tests all products 100% during the manufacturing process. achieve zero defects through lean production practices.· Implements comprehensive control over all factors in the manufacturing · Provides training and empowerment to quality personnel
process including personnel machinery materials methods and regularly organizes quality conferences and award-reporting
environment. events to enhance motivation for improvements.· Focuses on customer satisfaction upgrades joint warranty spare parts
services and establishes an international technical service center. · Integrates ITR operations and transformations to strengthen the
Market service · Sets up professional after-sales customer service and quality complaint
tiered management of after-sales quality issues enhancing the
interfaces providing professional and timely technical support to efficiency and thoroughness of solutions.customers. · Strengthens CQM at the customer end to target and enhance
· The after-sales quality department analyzes quality issues and follows management effectiveness.up on them until they are resolved.* Identification and Prevention of Quality Risks
The Company identifies and assesses product quality risks based on dynamic changes in the internal and
external environment and business development needs. This year risk control efforts focused on domestic
substitution of materials software development quality and product safety.Product Safety Risk Control: Based on the“dual full cycle dual safety”concept and the goal of“zero safetyissues”the Company identifies and eliminates safety risks throughout the stages of product design
manufacturing application and commissioning ensuring personal and property safety in all scenarios.Material Domestic Substitution Risk Control: Starting from product design and considering application
conditions design requirements and material characteristics the Company conducts full-scale optimization—
from complete machines to components—covering material certification supplier management incoming
inspection and production testing to reduce risks associated with material issues.Software Development Quality Risk Control: The Company carries out software improvement projects
to achieve digital and intelligent improvements in software modularity and self-testing of test software
significantly enhancing software development quality.During the reporting period the Company had no product recalls due to legal or regulatory requirements or
instructions from competent government departments nor were there any major disputes related to product quality.
051Focus on Customer Satisfaction / 2024 SUSTAINABILITY REPORT
* Internal and External Quality Audits
Every year INOVANCE conducts internal audits and third-party supervisory audits for quality management
in accordance with ISO 9001 standards customer requirements and industry standards to identify areas for
quality improvement and ensure products meet customer quality management requirements.Focused primarily on the Company’s internal quality management systems and
processes. In 2024 the Company conducted three internal audits including
two QPA audits of manufacturing processes and one assessment of the quality
Internal Audits management system.Including third-party audits (system and product compliance audits) and
customer audits. In 2024 third-party organizations spent more than 12
cumulative days conducting audits based on project and order requirements.During the reporting year the Company underwent 68 customer audits
External Audits achieving a 100% pass rate.Supplier Quality Management
INOVANCE has established an all-process quality control system for suppliers integrating the ISO 9001 quality
management system standards. Through regular internal assessments the Company strictly controls the
quality of its suppliers. The Company categorizes and ranks suppliers provides improvement plans for non-
compliant ones and establishes a phase-out mechanism to enhance overall supplier quality.* New Supplier Admission Audit
The company follows the New Supplier Audit Process and Management Standards and the Supplier Factory
Audit Report for guiding new supplier admissions requiring all new suppliers to pass the ISO 9001 quality
management system. New suppliers are assessed in several dimensions including quality system maturity
environmental and safety standards quality organization and personnel capabilities process quality
management customer service reliability assurance capabilities and sustainable development. In the reporting
year additional evaluation criteria such as operational risk and key person insights were introduced for new
suppliers.* Supplier Material Quality Management
The Company has established material quality management procedures and processes including the Inspection
Guidelines for Risk Procurement Materials the Material Reliability Management Guidelines and the Environmental
Compliance Specifications for Materials.The company applies differentiated quality management strategies based on the category and grade
of materials. For critical materials quality risk prevention management is conducted in advance with
strengthened controls for special material characteristics and enhanced quality grading. For general materials
an elimination policy is implemented to intercept and prevent defective materials from entering the process.Additionally the company has implemented the Component PPAP Process requiring suppliers to pass the
component PPAP certification to better meet customer quality requirements.
052Material Quality Risk
Identification Control Measures
Classification and grading of The Company implemented the Material Quality Grading Rules and used templates such as the Supplier Quality
material quality risks Information Survey. In 2024 quality grading was applied to new substitute materials and existing high-risk materials.The number of supplier change scenarios was expanded from 7 to 25 including scenarios such as cleaning auxiliary
Supplier material change risks material changes and multi-tier supplier changes. The supplier change management process was reviewed and optimized.The PCN Agreement and the PCN Guidelines were updated and 47 QPA audit checklists were archived and applied.Through monthly quality data monitoring of the “Three Key Elements” (key personnel key activities and key
Supplier material variation risks characteristics) along with unscheduled and unannounced audits the Company strengthened quality oversight and
management of supplier production processes.A Key Reliability Verification Checklist was developed to unify critical material reliability management requirements.The Material Reliability Management Guidelines were optimized. A reliability report monitoring mechanism was
Supplier material reliability risks
established for suppliers along with Reliability Test Standards for 55 material categories. Quick product reliability test
(ORT) schemes were implemented for high-risk materials such as power devices.* Supplier Quality Performance Management
Based on documents such as the Industrial Supplier Quality Performance Management Specifications the Full Supply
Chain Supplier Quality Management System and the Tier 2 Supplier Quality Management Standards the Company
manages quality for suppliers of different types and levels. INOVANCE conducts monthly performance
assessments for key suppliers covering environmental performance safety compliance testing major quality
issues unauthorized changes and market quality issues. Suppliers are graded as Excellent (Grade A) Good
(Grade B) Poor (Grade C) or Eliminated (Grade D).Beyond tier-1 suppliers the Company clearly communicates customer requirements quality standards and
quality goals to multi-tier suppliers and collaborates with tier-1 suppliers to implement quality management
for multi-tier suppliers requiring direct suppliers and key material sub-suppliers to sign Quality Agreements and
Change Management Agreements. During the reporting period the Company completed quality performance
assessments for 225 key suppliers.* Supplier Performance Improvement and Coaching
For suppliers that fail assessments the Company provides coaching and monitors the implementation of
corrective actions to ensure closed-loop management of quality issues. If improvement is unsatisfactory the
Company may adjust procurement quotas eliminate material codes or disqualify suppliers to prevent recurring
quality problems. Additionally the Company emphasizes supplier quality requirements communication organizes
ad hoc quality training and coaching and holds supplier quality conferences to align suppliers with INOVANCE’s
quality strategies control points and goals. No suppliers violated the Company’s red-line principles during the
year (including authenticity of documentation integrity audit safety and cooperation principles).Training on the Implementation
Standards for Product Environmental Supplier Quality Communication on Supplier Change and Variation Risk
Substances and Supplier Environmental Eight Major Quality Areas Communication
Compliance Management
053Focus on Customer Satisfaction / 2024 SUSTAINABILITY REPORT
Quality Culture and Training.* Quality Culture Development
In response to current and future business needs INOVANCE has strengthened its quality culture by formulating
and publishing a quality vision mission and values and upgrading its quality policy to define the direction and
guiding principles for future quality work thereby guiding and constraining employees to work toward shared
quality goals. In 2024 the Company held its third Quality Conference during which the Chairman officially signed
and issued the updated quality culture content clarifying the development direction for quality work.Aiming to meet the requirements of Based on the principle of matching
global customers customer business processes
Focusing on key issues key characteristics and key people
INOVANCE Quality Full participation prevention oriented do it right the first time efficient response
Policy
Building a high-quality industrial Achieving customer value through
chain excellent quality.* Deepening Quality Training
The Company continuously conducts quality training for all employees. In 2024 the Company delivered 175
quality training sessions for core staff in R&D production sales and service positions and conducted monthly
training sessions for frontline production staff. A mandatory semi-annual job rotation policy was implemented
for special positions to improve employee skill breadth and job safety. The Company updated the skill
certification system and training content continuously iterating courses in response to the growing automation
level in production and evolving business needs to support Company development and employee upskilling.The training content is diverse and aligned with the Company’s annual work priorities with designated themes
for quality management training and activities.Quality Knowledge Quiz
In May and September 2024 the Company organized two company-wide quality quizzes with over 15000 participants promoting the
dissemination of quality knowledge and raising quality awareness among all employees.Product Safety Standards and Certification Training
The Company held nine basic training sessions on safety standards and product certifications reaching over 400 participants. Safety
standards training materials were developed for R&D staff and product certification training materials were tailored for marketing staff.Training on Product Certification Management Rules
The Company organized one hands-on training session on quality assurance systems for product certifications. The training explained the
requirements of common certification types (e.g. CCC UL CQC ATEX) matched certification requirements to end-to-end processes from
incoming materials to shipping standardized operations provided examples of certification control points and offered practical management
tools.Training on Product Environmental Management Substances
The Company compiled training materials based on the Implementation Standards for Environmental Management Substances and published
them on the knowledge platform. Additionally six internal training sessions and one empowerment session involving over 300 suppliers were
conducted.
054Improving Customer Services
Customer Service Management System.* More Professional Service Team
The Company has established a customer service team consisting of direct employees service providers
and certified partner engineers. In 2023 an overseas service department was also established. INOVANCE’s
Technical Service Center set up a “Service Partner Management” module responsible for selecting utilizing
developing and retaining service providers. It also formulated the Service Partner Service Specification (General
Automation/Elevator) as a management standard.As of the reporting period the customer service team comprised 329 in-house employees (with 13 newly added
in 2024) 119 certified partner engineers (with 116 newly registered in 2024) and the overseas service department
had 25 engineers including seven local engineers and 18 engineers available for overseas assignments.The Company attaches great importance to the capabilities and professionalism of its customer service team
and actively conducts knowledge and skills training for relevant personnel. During the reporting period:
838 training sessions were conducted for customer service personnel (including service provider staff) with
total participants 11101 person-times.A special training camp was held for 42 core customer service staff.The “Golden Seed” capability development program was launched for some frontline service staff combining
online self-learning in-person mentorship and evaluation with 65 participants.The Company also emphasized knowledge documentation to improve the learning and working efficiency of service
personnel. By the end of the reporting period a total of 123 related knowledge documents had been archived..* More Comprehensive Service Network
INOVANCE is committed to providing more comprehensive and timely service and technical support to global
customers. We continue to expand our customer service network at home and abroad strengthen the planning
and development of the “three-level spare parts warehouse” system significantly reduce the time for
customers to receive spare parts and achieved a timely (within 24 hours) delivery rate of over 70% during the
reporting period up 20% to 30% year-on-year.Domestic Service Network Overseas Service Network
(as of the end of the reporting period) (as of the end of the reporting period)
A total of 693 service sites including 271 newly A total of 68 service sites covering over 20
added in 2024. Service sites are categorized as countries and regions including:
follows:
6 repair centers 662 service providers 9 subsidiaries and offices 9 repair centers
21regional spare parts centers 1service station 41joint warranty centers 9 spare parts centers
3elevator authorized stores
055Focus on Customer Satisfaction / 2024 SUSTAINABILITY REPORT
* More Diverse Service Channels
The Company actively explores and maintains diversified customer service channels combining online and
offline modes. Online channels include the 400 customer service hotline intelligent customer service and the
“My INOVANCE” app while offline services rely on physical service sites.“My INOVANC” is the Company’s dedicated app providing one-stop information and services for customersoffering modules such as service marketplace product information and video tutorials. In 2024 “MyINOVANCE” added a quick order placement feature to enhance service efficiency. Additionally the overseas
version of the app “My INOVANCE” was officially launched to support customers in product and document
inquiries helping the Company better serve overseas customers.Regarding intelligent customer service the Company focused on building an AI-based customer service system
during the reporting period resulting in approximately 80% increase in service issue throughput.“My INOVANCE” One-Stop Information and Service App
2024 Key Performance Indicators
400 Customer Service “My INOVANCE” App
Hotline (as of the end of the reporting period)
Total incoming calls Calls handled Registered users Monthly active users
34237816767213900030000+
Effective intelligent
customer service sessions Issue resolution rate Daily active users Service marketplace orders
22662791.23%3000+267
056Customer Satisfaction Management.* Customer Satisfaction Survey
To better implement the business philosophy of “greater customer satisfaction and more efficient operations”
the Company introduced third-party customer satisfaction surveys starting in 2023 to identify and
continuously improve high-priority issues. In 2024 the customer satisfaction score from the third-party survey
reached 70.86 an increase of 1.11 points from the previous year. Survey results showed that the Company’s
customer satisfaction ranked among the top in the domestic industrial automation control industry. The
Company annually analyzes customer satisfaction reports to identify core concerns and determine key drivers
of satisfaction. Special plans are developed to address various issues and internal processes and systems are
optimized to continuously improve customer satisfaction..* Customer Complaints and Resolution
The Company has established an efficient “Issue-to-Resolution” (ITR) process utilizing a three-tiered
response mechanism involving frontline service staff extended support personnel and R&D engineers to
promptly respond to customer demands drive swift issue resolution minimize negative impacts and improve
product quality. In 2024 the customer issue resolution rate reached 94.60%..* Customer Privacy Protection
INOVANCE places a high priority on customer privacy protection with strict information access controls in
place and is committed to collecting accessing using or disclosing customer data only with explicit consent
and for legal and appropriate business purposes. Throughout our collaborations we strictly adhere to
customers’ rules and regulations cautiously safeguarding customer assets including trade secrets intellectual
property proprietary technologies and information assets. Throughout the reporting period there were no
incidents of customer privacy or information leakage.
057Innovation Driven Development / 2024 SUSTAINABILITY REPORT
Innovation Driven Development
Innovation is the driving force and booster for enterprise development. INOVANCE consistently upholds
independent innovation leveraging advanced technologies and industry experience to deliver more
intelligent precise and cutting-edge comprehensive products and solutions for customers. Meanwhile
as collaboration with customers and partners deepens the Company places greater emphasis on
information security and privacy protection to safeguard stakeholder data and privacy effectively.R&D Innovation Focus
As a company that values technology products and solutions INOVANCE places great emphasis on
R&D innovation and considers technological innovation as the primary driving force for the company’s
development. It is committed to continuously creating value for customers by providing innovative
solutions and services helping them achieve business success. The company strictly adheres to scientific
ethical standards and follows prudent and robust principles in its R&D activities strictly prohibiting any
research and business practices that infringe on individual rights or harm public interests.Stimulate Innovation Vitality.* R&D Innovation Strategy
R&D and innovation are key to maintaining competitive advantage and achieving sustainable development.The Company continues to maintain a high R&D investment ratio ensuring strategic and annual planning
through the DSTE process to guarantee strong investment and strategic direction for innovation. In 2024
the Company defined three major R&D innovation strategies and directions:Digital and intelligent solution
architecture innovation technology leadership innovation and AI+ innovation.Digital and Intelligent Solution Technology Leadership AI+ Innovation:
Architecture Innovation: Innovation: Utilizing AI for product health
Developing IoT-integrated Rooted in core management assisting customers
solution frameworks based on technologies deeply in programming and design
industrial networks integrated exploring the underlying intelligent product debugging and
with wired and wireless principles across various smart Q&A of product knowledge—
technologies unified data technical domains. enabling intelligence of product
standards and industrial software. and solution.
058The Company actively integrates global resources and diverse innovative capabilities leveraging regional
technical advantages. R&D centers are located in Shenzhen Suzhou Xi’an Nanjing Milan in Italy and Stuttgart
in Germany forming a globally complementary innovation network..* Innovation Incentive Mechanisms
To stimulate employee innovation and deepen the corporate culture of innovation the Company has
established multiple internal innovation awards and recognizes outstanding individuals and experts. For
innovative achievements that are not immediately recognized the Company also has a retrospective innovation
reward mechanism to ensure fair and accurate implementation of innovation incentives. In 2024 the Company
selected 21 company-level technical award recipients including 8 for breakthroughs in key technologies 1 for
outstanding technology/product platform 2 for engineering capability platforms 5 for outstanding patents
and 5 for outstanding product and solution projects.To better incentivize technological innovation and research the Company separates technology development
from product development with independent investment processes and decision-making for technology
development..* Open Innovation Cooperation
INOVANCE continuously tracks cutting-edge technologies and innovation research and actively collaborates
with customers suppliers partners research institutes and universities on innovation. In terms of innovation
exchange the Company holds innovation seminars and roundtables on an irregular basis inviting academic
and industry experts to explore emerging technology directions and trends. Senior R&D experts actively
participate in academic societies industry associations and university exchanges to gain insights into the
latest technologies and feed them into R&D planning to drive the application of innovations in products and
services. In terms of technology cooperation the Company co-creates with core customers and establishes
joint laboratories with suppliers partners and universities to carry out research on various topics. During the
reporting period the Company participated in the formulation of 1 national standard.National Standards Formulated by INOVANCE in 2024
GB/T 18488 Drive Motor System for Electric Vehicles
2024 Key Performance Indicators
R&D investment R&D Investment as a percentage of
total revenue
RMB 3147 million 8.50%
Number of R&D personnel R&D personnel as a percentage of total
number of employees
5538 persons 22.65%
059Innovation Driven Development / 2024 SUSTAINABILITY REPORT
New Products / Major Product Upgrades Released in 2024
AI Servo System with Intelligent Commissioning and Diagnosis Functions
The AI servo system integrates intelligent commissioning and diagnostic functions
with One Cable technology and maintenance-free design without batteries solving
the “black hole of time” in automation and ushering in a new era of intelligent high-
end manufacturing. The intelligent commissioning function dramatically shortens
setup time by leveraging preset mechanical models automatic learning of mechanical
characteristics and one-click parameter tuning. The diagnostic function provides real-
time health monitoring of key transmission components through intelligent shaft-
end diagnostics and edge-layer analysis offering early warnings before deterioration
reducing unplanned downtime and supporting precision maintenance and holistic
health management.InoCube FEMS Net-zero Intelligent Energy Management System
InoCube FEMS (Factory Energy Management System) is an intelligent energy
management solution based on a “plug-and-play” design concept. Built on an
integrated cloud-edge-terminal architecture and deeply integrating automation with
digital technologies the system provides real-time energy monitoring efficiency
analysis load optimization and carbon footprint management services for industrial
customers across generation grid load storage and carbon scenarios supporting
intelligent green manufacturing. Based on model-driven design the system supports
flexible deployment and modular expansion which can help enterprises reduce
energy costs and improve production efficiency. Furthermore InoCube FEMS can also
predict energy demand optimize equipment operation strategies and support carbon
management and traceability helping enterprises achieve the “dual carbon” goals.U8 Industrial Collaborative Robot
The U8 series of industrial collaborative robots redefines productivity with cutting-edge
manufacturing DNA opening a new dimension in human-machine collaboration.[Industrial-grade Reliability] Equipped with precision joints and long-lifespan core
components for continuous 24/7 high-intensity operation under micron-level accuracy
with adaptive collision detection ensuring zero downtime.[Exceptional Flexibility] Modular design enables flexible deployment; combinations of
multi-product operation islands quickly reshape production ecosystems.[Safe and Friendly] Certified with 25 functional safety standards building a dual-
protection system.EC Series Integrated Motors
The EC Series integrated motors feature high efficiency energy-saving performance
safety reliability adaptability multifunctionality low noise and high protection levels.They are part of INOVANCE’s solutions to reduce energy consumption and enhance
centralized control efficiency in the livestock industry. Integrated with INOVANCE’s
digital platform and PLC products the EC Series forms a leading environmental control
system solution for livestock farming supporting the industry’s digital and scientific
transformation.
060INOVANCE’s R&D achievements gained widespread recognition. Several products received prestigious
international design awards in 2024 such as the Red Dot Design Award and iF Design Award. Awarded
products include:
High- All-electric Inobox Speed Reader
performance IO injection industrial OCR intelligent
molding personal camera
machine computer
High protection durable and High efficiency high quality and Serial compact and flexible AI-powered smart camera with
robust low energy consumption industrial PC plug-and-play functionality
purpose-designed for specific
Control injection molding scenarios
production line
PLC education IPT bus valve IPV pilot
and training island valve
platform
An integrated industrial control Integrated pneumatic-electric Detachable controller
education and training platform controller
Optimize R&D SystemINOVANCE views its mission and vision for the R&D system as “empowering industrial scenarios with leadingAI/IoT technology” It builds a comprehensive innovation framework focusing on technology research platform
product development and customized product development adopting an IPD R&D model and guided by the
R&D Code of Conduct. This framework aligns with external environments corporate strategy customer needs
technology trends and market competition..* R&D System
Advance technology research and pre-research to track leading global technologies and
address core technology gaps.Technology
research Conduct forward-looking research on key components to maintain core competitiveness.Develop lightweight miniaturized and low-environmental-impact low-carbon green
innovation technologies.Platform Develop high-performance highly reliable and low-cost standardized platform products to
product provide comprehensive product solutions to customers.development Integrate digital and intelligent technologies to develop model-driven platform products.Focus on customized product development to provide tailored innovation solutions for
Customized customers.product Establish customer solution development and equipment competitiveness development
development processes seamlessly integrating technology research platform development and solution
development throughout the entire cycle.
061Innovation Driven Development / 2024 SUSTAINABILITY REPORT
Protect Intellectual Property
INOVANCE strictly complies with the Patent Law of the People’s Republic of China the Trademark Law of the People’s
Republic of China the Copyright Law of the People’s Republic of China and other relevant laws and regulations.The Company has established an intellectual property management system comprising the Intellectual Property
Management Manual the Management Procedures for Risks of Intellectual Property the Management Procedures for
Resolution of Disputes on Intellectual Property and the Incentive Procedures for Intellectual Property. The Company
established a Patent Committee and collaborates with IP and legal departments to systematically manage
intellectual property creation protection application and management.During the reporting period the Company formulated new systems including the Patent Management System
the Patent Rights Protection System the Patent Risk Search System and the Patent Application System to further
standardize internal patent management. These require patent layout for R&D projects and joint discussions
between patent engineers and R&D personnel to identify innovations evaluate risks and review proposals.The Company also prepares industry and peer patent analysis reports to raise IP awareness encourages timely
reporting of research outcomes and through the Incentive Procedures for Intellectual Property rewards patent
applications authorizations and implementations boosting employee engagement in innovation and IP
applications. Subsidiaries Suzhou INOVANCE and INOVANCE Automotive have obtained third-party certification
for the Enterprise Intellectual Property Management (GB/T 29490-2013) and received intellectual property
management system certification.The Company respects and protects the intellectual property rights of others and has established internal
IP management systems to ensure legal compliance. The Company respects industry norms and conducts
intellectual property searches and due diligence prior to product development procurement financing and
overseas market expansion to mitigate infringement risks. In addition the Company actively engages in patent
and trademark enforcement to combat counterfeiting and infringement in the market. During the reporting
period the Company did not face any penalties from regulatory authorities for violating intellectual property laws
and regulations.The Company promotes intellectual property awareness in daily operations through regular IP-related training to
continuously enhance employees’ awareness of IP protection.
2024 Key Performance Indicators
As of December 31 2024 New patent applications
Valid patents 2375 685
New patents granted New trademarks approved
57259
New copyrights registered Number of invention patents applied to
core businesses
79450
062Data Privacy Protection
“Enhancing awareness strengthening measures preventing risks and securing business” is the
company’s information security management policy. Information security training and dissemination are
important means to enhance company-wide awareness of information security. The Company strictly
complies with the Data Security Law of the People’s Republic of China the Network Security Law of the People’s
Republic of China the Personal Information Protection Law of the People’s Republic of China the European Union’s
General Data Protection Regulation (GDPR) and other applicable laws and regulations in its operating
locations and those of its partners. We prudently fulfill our responsibilities and obligations for data
security and privacy protection collecting and using stakeholder information based on the principles of
legality legitimacy and necessity.Information Security Management.* Information Security Strategy ObjectivesINOVANCE and its subsidiaries adhere to the principle of “one network one security strategy protectingcustomer trade secrets.” Based on the information security management principles such as client
interoperability server-side access and differing regional client and server access the Company sets the
baseline goal of avoiding significant information security incidents. It continuously builds and enhances the
information security management system based on ISO/IEC 27001?2013.Information Security Objectives Progress Status
No major information security incidents No major information security incidents occurred Achieved
The Company follows the “Three Boundaries Two Channels” framework to secure control of INOVANCE’s
information assets balancing security efficiency and service effectiveness.“Three Boundaries”: Refer to company’s network and information assets within internal endpoints must not
the network boundary physical leave the company’s endpoints without permission.boundary and terminal boundary.“Two Channels”: Refer to the Company’s application and compliance
All outbound information within the
channels for information transmission which manage internal confidential
network boundary must undergo
data and ensure secure document transmission.compliance review and core internal
secrets are strictly protected. Within the
physical boundary the entry and exit Endpoint boundary
of storage media are strictly controlled Network boundary
Physical boundary
to prevent major information leakage
incidents. The endpoint boundary Compliant and controlled Compliant and controlled information INOVANCE Three BoundariesInformation information
is divided into internal and external Application channel Assets Two Channels e-transmission channel
endpoints; external endpoints after
legal and regulatory review need to
be uniformly managed within the
domain when connected to the INOVANCE Information Security Control Framework
063Innovation Driven Development / 2024 SUSTAINABILITY REPORT.* Information Security Management Structure
INOVANCE has established a four-tier information security organizational structure internally. Business heads are
the primary responsible persons for business information security. They are accountable for managing information
security assets during operations. Information security indicators are included in executive performance assessments.The Information Security Department is responsible for planning the information security control system and
conducting audits. The IT Security Department is tasked with implementing and maintaining the Company’s
information security system. Performance indicators such as timely resolution rate of security risks and timely closure
rate of major security incidents are incorporated into departmental KPIs. All departments jointly build the information
security system and ensure daily operations comply with legal and regulatory requirements..* Information Security Management System
The Company has established a strict data privacy protection system and data collection statements/consent policies.Relevant regulations include the Information Security Incident Management Regulations the Privacy Policy the Information
Asset Transmission Regulation the Information Security Reward and Punishment Regulations and the Information Security
Violation Cases and Penalties. These are reviewed annually and revised as needed based on applicable laws and
regulations industry insights and incident response experience.During the reporting period the Company reviewed and revised four policies: the Information Security Awareness
Cultivation Policy the Information Security Resignation Audit Policy the Information Security Reward and Punishment
Regulations and the Trade Secret Protection Policy. Domestically the Personal Information Protection Management Policy
covers all employees and suppliers within China. Internationally the Company implements GDPR-aligned practices at
its overseas operations..* Information Security Risk Management
The Company annually updates the inventory of confidential business information assets. The Information Security
Department reviews the protection plans for various scenarios checking for vulnerabilities and whether the plans
address emerging threats. Information assets are classified into four levels—“Confidential” “Secret”“ InternalUse”and“Public”—based on file sensitivity retention period and transmission requirements. Departments owning
information assets must regularly review the classification levels and reevaluate the classification when the
confidentiality period expires..* Information Security Emergency Response Management
The Company manages information security incidents based on the Information Security Incident Management
Regulations conducting source tracing evidence preservation and fact clarification. We respond promptly and legally
to incidents until proper resolution is achieved. In 2023 the Company set a target of identifying and resolving security
incidents within 21 days of occurrence. During the reporting period the average incident identification time was 13.1
days a 30% improvement over the target..* Information Security Audit
The Company conducts routine information security audits monthly and issues corresponding audit reports.Information security audits during the reporting period covered all key operating sites except EST and INOVANCE
Automotive. The Company has strengthened its information security resignation audit this year covering all resigned
employees except for production line employees and employees in some subsidiary companies..* Information Security Training
Annual company-wide information security training is conducted. INOVANCE’s information security training system
consists of new employee orientation training regular information security exams and routine specialized training for
information security officers in various business departments. During the reporting period one information security and
legal exam was administered to all employees achieving a 100% pass rate. Additionally 21 information security training
sessions were held.
064IT Safety.* Security Strategy Objectives
The Company aims to prevent major IT security incidents and ensure system availability and business continuity. We
continue to strengthen a “zero trust” IT security framework enabling trusted control over endpoints network access
applications and data.IT Security Objectives Progress Status
No major IT security incidents No major IT security incidents Achieved
Total system unplanned downtime ≤ 23.11 hours Total system unplanned downtime ≤ 18.33 hours Achieved.* IT Security Management Structure
Internally the company has established a clearly defined IT security management structure. The Executive
Management Team (EMT) approves the Company’s IT security policies management strategies and performance
indicators. The Process Data and IT Department is responsible for corporate IT development maintenance and
security. The IT security department is responsible for the construction and maintenance of IT security including
enforcing IT security policies access control network security and security audits..* IT Security Management System
The Company established its information security management system in accordance with ISO/IEC 27001?2013
and has issued policies such as the IT Service Continuity Management Regulations and the IT Service Continuity Plan to
comprehensively protect IT security. The IT security department conducts monthly vulnerability scans of all Company
servers to detect potential security risks and ensure reliable system operation. The Company transforms the latest IT
security insights into internal security baselines improves the vulnerability management mechanism monitors daily
security issues and organizes regular attack-defense drills..* Emergency Response and Offensive and Defensive Drills
IT incidents (including IT security incidents) are classified based on the number of affected individuals and the type
of business involved. Incidents are categorized into four levels based on urgency scope severity and potential
consequences: Level I (Highest) Level II (High) Level III (Medium) and Level IV (Low). In 2024 the Company added two
emergency response plans: The Cloud System DDoS Attack Emergency Plan and the Domain Hijacking Attack Emergency Plan.To enhance the Company’s practical offensive and defensive capabilities improve the capacity to identify security
threats trace their sources and respond to emergencies five offensive and defensive drills were conducted in 2024
uncovering 326 vulnerabilities with a timely fix rate of 90.5%.In 2024 the Company conducted one IT business continuity test covering key systems to ensure that the relevant
architecture effectively meets the requirements of RTO and RPO..* IT Security Audits
The IT Security Department conducts annual internal audits to ensure group-wide compliance with security baselines. In
2024 the Company passed the AEO Advanced Certification audit by the Customs Authority which included assessments
of business continuity cybersecurity data centers business systems and IT security. Third-party information security
rating agency BitSight evaluated the security of the Company’s external systems and internal endpoints. The average
daily score in 2024 was 774 out of 850 placing the Company at a leading level within the industry. During the reporting
period two subsidiaries obtained ISO 27001 certification an increase of one compared to the previous year.
065Employee Development Guarantee / 2024 SUSTAINABILITY REPORT
Employee Development Guarantee
INOVANCE recognizes that employees are the company’s most valuable asset. The Company upholds
the core value of “contributor oriented” striving to foster a people-centered cultural system
that protects employee rights enhances well-being and promotes a diverse equal inclusive and
trustworthy workplace. We strengthen occupational health and safety management ensure a safe working
environment focus on talent development open up advancement pathways to grow with our employees
and cultivate top talent for the industry.Employee Rights and Welfare Protection
Equal and Inclusive Workplace
INOVANCE advocates for diversity equity and inclusion and is committed to treating all employees equally—
regardless of gender ethnicity nationality culture religious belief political affiliation skin color sexual
orientation age social status disability or any other personal characteristic—across all stages of employment
including recruitment compensation training promotion and termination. We believe that a diverse cultural
background can stimulate team creativity. We will continue to improve our employee diversity platform to
foster equal communication and collaborative innovation among all employees..* Employee Diversity
INOVANCE adheres to the cultural values of equality and diversity. With the advancement of our internationalization
strategy we have gradually established employee teams and hired local talent in different operational regions.As of the end of the reporting period the Company employed 26518 people from over 10 countries and
regions including 444 foreign employees.The Company places great emphasis on protecting the legal rights of female employees and is committed to
supporting their career development. As of the end of the reporting period female employees accounted for
25.41% of the workforce and women held 15.75% of management positions.
Key Performance in 2024 (as of December 31 2024)
Total number of Proportion of female Proportion of female
employees employees management
26518 persons 25.41% 15.75%
Note：The proportion of female employees and female management only involves domestic employees and does not cover overseas
employees.
066.* Equal and Inclusive Work Environment
INOVANCE has issued the Business Conduct Guideline the Anti-Discrimination and Harassment Procedure and
the Guidelines for Prevention and Control of Sexual Harassment in Workplace to regulate employee behavior and
continuously promote the development of an inclusive and equitable work environment. We encourage
employees from diverse backgrounds to engage in active communication. On the basis of mutual respect and
understanding of different cultures we promote team integration and enhance cohesion.Since the second half of 2024 INOVANCE has created positions suitable for people
with disabilities at Yueyang INOVANCE including administrative roles and simple
manual production roles supporting the employment and placement of workers
with disabilities in the local area. The Company plans to expand this employment
Proactively Fulfilling Social support initiative for persons with disabilities to other production bases across
Responsibility for Employment China including Xi’an Nanjing and Jinan.of People with Disabilities
Employee Interests Protection
INOVANCE strictly adheres to the Labor Law of the People’s Republic of China the Labor Contract Law of the People’s
Republic of China and other legal regulations as well as the laws and regulations of the countries and regions
where it operates establishing a comprehensive system to protect employee rights and genuinely safeguarding
employee interests. Based on the Company’s standardized system some subsidiaries have formulated specific
employee rights protection policies in accordance with local conditions.In 2024 the Company conducted internal audits covering employee rights at selected operational sites and
found no high-risk issues related to human rights..* Equal Employment and Freedom of Occupation
During recruitment the Company adheres to the principles of fairness impartiality and openness. Recruitment
is carried out in an orderly manner in accordance with the Employee Recruitment Management System and the
Labor Contract Management Measures. Candidates are evaluated based on competence skills and adaptability to
ensure the most suitable talents are hired and employment discrimination is eliminated. The Company respects
employees’ freedom to choose employment is committed to publishing objective and truthful job postings
does not restrict employees from engaging in specific jobs or work against their will and supports employees
in pursuing their career development. No illegal or non-compliant employment incidents occurred during the
reporting period..* Prohibition of Child Labor and Forced Labor
In accordance with the Business Conduct Guideline we are firmly committed to prohibiting the employment or
support of child labor under any circumstances. During recruitment we verify the authenticity of candidate
information through background checks and official identification documents. Additionally the Company
has developed a Child Labor Remediation Flowchart. If an incident of inadvertent child labor employment is
discovered we will promptly take remedial measures such as providing appropriate medical treatment and
compensation encouraging the child to continue compulsory education or arranging their return to their place
of origin depending on their physical condition and education level.We respect human rights and employee freedoms including freedom of career choice freedom of employment
and resignation voluntary overtime and freedom of movement. We prohibit all forms of modern slavery or human
trafficking including forced labor bonded labor indentured servitude and involuntary prison labor. We also prohibit any
actions that restrict labor freedom such as withholding wages benefits property or personal identification documents.During the reporting period there were no incidents related to employing child labor or forced labor.
067Employee Development Guarantee / 2024 SUSTAINABILITY REPORT.* Compensation Working Hours and Holidays
The Company strictly complies with wage and compensation laws applicable in its operating locations and
adheres to the principle of equal pay. In accordance with the Management Procedures for Social Responsibility and
Occupational Ethics the Company provides compensation that meets legal or industry minimum wage standards
and has implemented a series of compensation policies including the Salary Management System to standardize
compensation management.In terms of working hours and leave management the Company strictly follows applicable legal and industry
requirements and has formulated the Attendance Management Measures and the Management Procedures for Social
Responsibility and Occupational Ethics. Working hours are recorded overtime pay is issued in accordance with legal
requirements and reasonable rest and leave entitlements are ensured. We offer paid annual leave that exceeds
national policy requirements as well as legally compliant maternity checkup leave maternity leave breastfeeding
leave and additional local leave types such as marriage leave bereavement leave and paternity leave..* Anti-Discrimination and Anti-Harassment
The Company prohibits all forms of discrimination and harassment and is committed to providing equal
opportunities and fair treatment to employees of all races cultural backgrounds religions genders ages
and physical conditions. The Company has established the Prevention and Management Standards for Workplace
Sexual Harassment and the Anti-Discrimination and Harassment Procedure supported by relevant mechanisms and
maintains a zero-tolerance policy for workplace harassment..* Collective Bargaining and Freedom of Association
The Company respects employees’ legal rights and is committed to safeguarding employees’ legal rights to freedom
of association unionization and participation in collective bargaining. We continue to strengthen the workers’
representative congress system and labor union structures enhance democratic corporate governance and foster
harmonious labor relations. All full-time employees under labor contracts may participate in collective bargaining to
jointly review policies concerning compensation working hours and leave occupational health and safety employee
benefits and training. As of the end of the reporting period the Collective Contract and Wage Collective Negotiation
Agreement covered 84.74% of employees.Employee Welfare and Care
We firmly believe that caring for employees is caring
for the future of the Company. The Company provides
Social welfare Career development
comprehensive and diverse employee benefits and care Self- activities activities
programs. Various initiatives are in place to support actualization Recognition of Long-term incentives
employee value
employees’ physical and mental well-being promote
work-life balance enhance their sense of security Esteem Offboarding care Festive Care
fulfillment and happiness and strengthen team needs Democratic communication
cohesion and a sense of belonging.The Company has developed a five-level employee Belonging Cultural integration events
welfare and care system addressing basic safety needs Recreational activities
belonging respect and self-actualization needs.Health and safety facilities
Benefits exceeding statutory standards include Safety Employee Assistance Program (EAP)
additional coverage for critical illness accident and life needs Supplemental commercial insurance
insurance a compassion fund assistance mechanism
Statutory benefits
and targeted benefits for special groups such as Basic
Additional allowances
employees with illnesses female employees those in needs
Overseas allowances
hardship and overseas employees.
068.* Customized Employee Benefits and Care Programs
Employee
Group Benefits and Care Measures Progress in 2024
Established “Mom Stations” (mother and baby rooms) Six new “Mom Stations” were established at Company locations
One-hour daily breastfeeding leave for female employees during nursing
Female period Held International Women’s Day floral workshop
employees events such as “Floral Charm Skillful Hands”
Set up holidays for female employees
Launched special activities for Women’s Day Prepared customized gifts for female employees on Women’s Day
Established a charity fund for employees in difficulty
Employees Provided compassion fund support to seven
in difficulty Created a family hardship assistance mechanism offering interest-free employees totaling RMB 423862.82
loans for emergencies
Produced a global cross-border entry and exit handbook for overseas
cultural guidance
Employees
working Improved employee overseas assignment processes and developed a Purchased overseas travel insurance for 398
overseas global mobility system employees
Established a comprehensive overseas employee insurance mechanism
for safety and health protection
“Floral Charm Skillful Hands” Women’s Day floral workshop.* Employee Assistance Program (EAP)
The Company places strong emphasis on mental health. Since 2023 the Employee Assistance Program (EAP)
has been in place. Various activities were conducted to raise awareness and promote healthy mindsets. An
EAP counseling room was established at Suzhou INOVANCE. A column called “HUI XIN QING” was created
on the internal platform to share stress-relief tips. On-site counseling services are offered regularly to provide
comprehensive mental health support and help employees alleviate stress effectively.EAP Implementation in 2024
Individual Psychological Counseling: 374 total hours provided to 84 employees.Employee Care and Support: Continued follow-up for 73 employees dealing with long-term illness or severe conditions with 53 cases
concluded and 20 ongoing as of the end of the reporting period.Group Counseling Sessions: 8 sessions were conducted reaching over 900 employees; 36 mental health articles published with over 44000
views.“A Hundred EAP Ambassadors” Program
In 2024 the Company launched the “100 EAP Ambassadors” program selecting and training 100 outstanding employees to serve as
EAP ambassadors responsible for care actions. During the reporting period EAP ambassadors handled 271 cases involving employee
relations support and prevention including ten crisis interventions. The program achieved a 93% case handling rate. At the end of 2024 five
ambassadors were recognized as “Outstanding Ambassadors”.The program received positive feedback internally and externally with Suzhou INOVANCE recognized as a “Professional Third-PartyMediation Organization of Suzhou”
069Employee Development Guarantee / 2024 SUSTAINABILITY REPORT.* Balancing Work and Life
The Company promotes people-oriented management
encourages work-life balance and supports employees
in participating in activities based on their interests. The
Company has established 29 interest-based clubs covering
basketball swimming dancing etc. and regularly organizes
outdoor activities sports meets and family days to enhance
employees’ physical fitness enrich their spare time and
improve their well-being and sense of belonging. Libraries
lounges and a variety of fitness facilities have been set up
at key sites to support employee relaxation and recreation.A one-stop employee service platform provides integrated
administrative HR fixed asset and IT services. In 2024 5
sites launched new one-stop service desks. INOVANCE Family Day 2024
More than 1000 employees participated in the Company’s
2024 Sports Meeting and over 500 participated in both
marathon and family day events.Employee Communication and Feedback
The Company values employee satisfaction happiness and engagement. To foster a diverse equitable and
inclusive workplace we maintain multiple communication channels and mechanisms including workers’representative congresses a whistleblower mechanism employee satisfaction surveys the internal“ INOVANCECircle” forum the “HR Help Me” mailbox and the President’s Mailbox. We actively listen to employee
concerns and provide timely feedback and solutions to ensure issues are effectively resolved..* Workers’ Congress and Trade Union
The Company has established a Workers’ Representative Congress system and has set up trade union
organizations in accordance with legal provisions. These bodies fully play their role in democratic decision-
making management and supervision to ensure all employees’ rights to be informed to participate to
express themselves and to supervise. They also promote the institutionalization standardization and
proceduralization of the Company’s democratic management. As of the end of the reporting period all major
Company entities had established labor unions with 88.72% of employee participation rate..* Whistleblower Mechanism
A year-round whistleblower mechanism is in place. Employees can submit suggestions or feedback regarding
the work environment and business management through the platform. The business department will submit
the reviewed proposals to the higher-level department. Validated proposals are implemented internally and
the proposers are rewarded accordingly..* President’s Mailbox
The President’s Mailbox provides an upward communication channel for all employees. It enables monitoring
of managers at all levels and helps resolve real issues faced by employees. The mailbox also accepts reports of
misconduct that violate the value of “Customer First.” In 2024 the President’s Mailbox received 91 letters.
070Talent Attraction and Retention
Talent Attraction and Recruitment
The Company has established a diversified talent recruitment system to attract and select outstanding talent
through a wide range of channels. During the reporting period the Employee Recruitment Management Policy was
further optimized to expand recruitment channels simplify and refine processes and enhance talent selection
criteria in response to evolving business needs and market conditions.Recruitment is categorized into three types: campus recruitment social recruitment and production line recruitment.The Company partners with universities to co-establish “INOVANCE Classes” joint laboratories and provide
application-based teaching scenarios in the industrial automation control field sharing best practices to help
students better understand the application of industrial automation products. During recruitment seasons we engage
Campus in close collaboration with schools through the approach of “sending teaching to the door” on career development
Recruitment and industry insights to enhance our attractiveness to graduates.For high-level talent the Company follows a “careers attract people” strategy. We believe in the value and potential
of talent and are committed to providing an environment full of opportunities and challenges allowing outstanding
talents to fully utilize the Company’s platform to exert their abilities and achieve their career aspirations.Social
Recruitment
This includes both campus and social recruitment. In campus recruitment we work with vocational schools on order-
based training programs that integrate job-relevant courses and offer career guidance. For social recruitment we use
multiple channels including traditional online recruitment as well as emerging media platforms. The use of diverse
Production Line recruitment channels enables us to reach a broader talent pool and attract suitable candidates.Recruitment
Talent Retention and Motivation
The company places a high priority on talent reserves and building talent echelons offering targeted retention
measures for different categories of talent continuously optimizing the cadre care mechanism and has constructed
a “contributor oriented” compensation system and incentive mechanism. Additionally it conducts human resource
digital transformation in a “digitized” manner to enhance the management efficiency of the talent system..* Talent Retention System
The company has established a retention system covering fresh graduates socially recruited personnel
experts and key position talents.The Company promotes the “Three-Year Fresh Graduate” plan to cultivate key business talent through targeted customized
Graduates work arrangements. In 2024 the program focused on goal setting and high-standard process management encouraging
graduates to stay motivated through resource support competitions and knowledge sharing.New Hires
(Social Recruitment) A mentoring program is in place to help new hires integrate quickly and master their roles.Experts The Company implements a
“One Axis Four Lines” expert care framework—time as the main axis supported by integration
and value creation lines along with motivation and development lines—to maximize expert contributions.Key Role Talent A targeted care mechanism is in place for employees in critical roles coordinated by HR department heads and secretaries
to identify needs and follow through on actions.
071Employee Development Guarantee / 2024 SUSTAINABILITY REPORT
INOVANCE Talent Pipeline
Proportion of expert-level talent Proportion of senior talent
0.5%14.5%
Proportion of mid-level talent Proportion of junior talent
50%35%.* Employee Compensation and Incentives
INOVANCE upholds the core value of “contributor oriented” and the principles of fairness and equity. Our
compensation system includes base salary allowances bonuses long-term incentives and statutory benefits.Relevant policies include the Salary Management Policy the Year-End Bonus Management Policy and the Project
Bonus Management Measures. In addition the Company issued the Overseas Subsidiary Compensation Management
Policy during the reporting period to standardize overseas employee compensation and support global
business expansion.The Company applies job grading and performance evaluation mechanisms to review employee grades and
compensation based on job grading role matching and external competitiveness. We favor high performers
oppose mediocrity and are committed to offering competitive compensation and benefits to continually
energize and inspire our workforce..* Talent Incentive Programs Performance Bonus
The Company’s compensation structure
distinguishes between base salary and
performance bonuses. While ensuring
employees’ basic income performance
Equity Incentives bonuses serve to incentivize improved
The Company continues to launch equity incentive plans work performance.creating a mechanism for employees to share interests Benchmarking and Recognition
with the Company and motivate management teams Annually the Company conducts recognition events
outstanding staff and key talents. In 2024 the Company to provide bonuses and honors to outstanding
launched its seventh equity incentive plan granting 283000 employees. In 2024 26 teams received the
Class II restricted shares to 14 employees and 30892200 Company-level“Outstanding Team Award”stock options to 1146 employees. New incentive recipients and 100 employees received the“Outstandingwere primarily middle management and core technical Employee Award.”In addition various departments
or business personnel. They accounted for 4.37% of total and subsidiaries have also launched their own
employees. As of the end of the reporting period 3 equity recognition and incentive programs.incentive plans and 2 long-term incentive mechanisms were
in effect covering a total of 1398 employees or 5.27% of Standard Allowance Items
the workforce. Among all recipients 99.07% were general These include living subsidies
employees. special post al lowances ski l l
allowances expatriate allowances
and contribution-based rewards
such as mentor fees talent referral
bonuses and lecturer fees.
072Employee Training and Development
Employee Training System
INOVANCE places great emphasis on talent development and has established a training system tailored to
employees of different levels and categories. Through a mix of online courses themed workshops and offline
training camps the Company provides abundant learning resources aimed at enhancing leadership among
managers professionalism and technical capabilities among employees and business collaboration skills across
the ecosystem ensuring employees are well-equipped with the knowledge and skills required for their roles.The Company has formulated the Employee Training Management Procedure the New Employee Training Operation
Regulations the Outsourced Training Management System and the Course Management System to ensure the
standardized and effective operation of the employee training system.The Company has built a learning and development platform centered around “INOVANCE Academy”
offering high-quality training programs and courses nurturing excellent internal instructors and consolidating
organizational knowledge to provide employees with professional and high-value learning resources that meet
their development needs.In 2024 the Company optimized the training system in three main areas:
Updated provisions and refined standards to steer training objectives and ensure
Curriculum Policy quality control. Measures include classifying courses and defining certification
Optimization standards based on three to five year future needs using scientific course coding
and improving course inventory management and retrieval.Detailed lecturer sourcing training and certification processes established
Lecturer Policy
usage logic structure and rules defined exit criteria and standardized lecturer
Optimization
compensation.Learning Platform Clarified departmental responsibilities in platform construction and upgraded
Governance
Optimization administrator duties across all platform levels based on actual use cases.Amount of Employee Training Hours Average Training Hours per Employee
719255.90 hours 27.12 hours/person
Employee training coverage rate
100%
073Employee Development Guarantee / 2024 SUSTAINABILITY REPORT.* INOVANCE’s Technology Training System
Training
Training Program Target Participants Main Content
Categories
Focuses on cultural integration
NPT Program (New Power Training Camp) Campus-recruited fresh graduates through various learning formats
to help new hires understand
New employee NET Program (New Energy Training Camp) New hires from social recruitment Company values and norms training improving their sense of belonging.Mentor training is also emphasized
NTT Program (New Talent Tutor Camp) New employee mentors to support new hires in integrating
more effectively.RMT Program (Rising Manager Training
Camp) Succession managers of various systems
Based on the four capabilities and
“three do’s and three builds”
NMT Program Newly promoted managers profile for INOVANCE leaders
Management (New Manager Training Camp) a training system from reserve
training MMT Program managers to senior managers
(Middle Manager Training Camp) Directors and senior managers was established to strengthen
TMT Program Assistant director-level and above leadership skills across all
(Top Management Training Camp) managers and level five experts management levels.ART Program
(Account Responsibility Training Camp) Employees involved in sales
GPMT Program (General Automation
Project Management) Employees in project management
RPT Program
(R&D Project Manager Camp) R&D project management personnel
BVT Program Core operational talents from Heavyweight Job qualification maps were
(Business Vanguard Training Camp) Teams developed for key positions
CPT Program (Chief Product Officer focusing on business pain points
Special Training Camp) Employees in product management and sharing INOVANCE’Professional s best
talent training practices. Specialized training SRT Program
(Solution Representative Training Camp) Employees in solution delivery
programs target functions
like marketing R&D digital
ITT Program Business and management staff from transformation solution delivery
(International Talent Training Camp) global operational sites and project management.PCMT Program (Procurement Category
Manager Training Camp) Employees in procurement
CST Program
(Customer Service Training Camp) Technical service engineers
CRT Program
(Channel Responsibility Training Camp) Employees in channel management
NFT Program
(New Force Special Training Camp) Some campus recruits
Market Intermediate Technical Training Marketing employees Technical knowledge and skills Program training was provided to familiarize
Technical talent ’
training Creation Camp Project Interns at Marketing Positions
employees with INOVANCE s
main products and technologies
improving their practical
Product Technical Enablement Program Employees working on solutions application capabilities.Digital-OT Integration Camp Employees in digital and solution-related roles
OMT Program Mid- and senior-level managers from
(Outstanding Manager Training Camp) INOVANCE’s customers
ECPT Program (Excellent Chief Product Product managers from INOVANCE’s In alignment with strategic and
Officer Special Training Camp) ecosystem companies business development goals the
Ecosystem talent Company consolidated and shared
training IET Program (Ecosystem Technical
Capability Empowerment Camp) Technical staff from ecosystem partners
advanced managerial insights and
methodologies with ecosystem
’
Customer-customized Training Programs Technical personnel of INOVANCE s
partners to jointly build talent and
customers achieve win-win development.IAT Program (INOVANCE Automotive Technical staff from authorized service
After-sales Training) stations
074.* Specialized Training Program Case
RMT Program (Rising Manager Training Camp)
The Company launched the RMT Program (Rising Manager Training Camp) to train future leaders across business
lines integrating management theories with real-world business scenarios. The program adopts a credit system
for quantitative assessment quantitatively evaluating the classroom performance of trainees and the timeliness
and quality of their completion of learning tasks. In 2024 four special classes were launched with 199 trainees
completing 112.25 total hours of offline training. All four classes successfully concluded by the end of the
reporting period.BVT Program (Business Vanguard Training Camp)
Targeted at key roles in business operations such as marketing development and account representatives this
program focused on business outcomes and operational awareness. Through empowerment seminars and practical
workshops trainees were guided to clarify roles understand IPD processes and strengthen end-to-end business
awareness. In 2024 the program trained 81 core business representatives with a total of 21 training hours.NFT Program (New Force Special Training Camp)
The NFT Program focused on technical application trained 372 campus recruits in 11 classes during 2024
delivering 1026 hours of technical and hands-on training. The program helped new graduates quickly understand
INOVANCE’s core products and technologies strengthening their practical skills and integration into business
operations..* Training Satisfaction Evaluation
INOVANCE Academy conducted evaluations and satisfaction surveys after each training camp and program
completion.Post-training Evaluation
It was divided into course satisfaction and operational satisfaction assessed by participants. Course satisfaction
covered content presentation and knowledge application; operational satisfaction covered preparation class
management and support services. Program teams reviewed feedback for continuous improvement.Post-completion Evaluation
It was conducted by program sponsors and business stakeholders via interviews and surveys. The feedback was
incorporated into performance evaluations..* Online Learning Platform Construction
To support flexible self-directed learning the Company launched an online learning platform for knowledge
accumulation and sharing. As of the end of the reporting period: 25987 active user accounts 439089.57 total
learning hours 10344 cumulative courses and 9446 new learning programs published in 2024.
075Employee Development Guarantee / 2024 SUSTAINABILITY REPORT.* Internal Instructor Development
Excellent instructors and high-quality courses are the soul of INOVANCE Academy and key to the success
of the training system. The Company continuously improves its Lecturer Management System to support
talent development aligned with current and future scenarios. 2024 efforts focused on achieving balance in
instructor selection and developing a professional internal lecturer training system.Instructor selection emphasized matching teaching content with practical needs adhering to the principle of
“assign to validate validate to assign” enhancing training effectiveness.In terms of the construction of a professional lecturer training system the Company carefully plans internal
trainer programs based on the training needs of each system’s lecturers and the annual demand for lecturers
at INOVANCE Academy combined with lecturer portraits and ability models including 12 classes with trainees
at the beginner intermediate and advanced levels and has trained 335 lecturers at different levels. Four
instructors were awarded the “Gold Lecturer” title and profiled to foster a strong learning culture.Employee Promotion and Development
As part of the employee promotion and development system the Company has established a comprehensive
career development pathway based on job categories covering four main career tracks: management
professional project management and skilled talent. Policies such as the Qualification Management System and
the Management Regulations for Work License Implementation serve as promotion frameworks and ensure fairness
in career progression.Each year capability certifications are conducted based on qualification standards to identify talent potential
ensuring optimal role fit and enabling internal mobility that maximizes organizational agility.“Ocean Flow Plan”
To encourage internal mobility and nurture well-rounded high-caliber talent in support of evolving business needs
the Company launched the “Ocean Flow Plan” in 2024.The Company irregularly posts internal transfer opportunities and offers an “I Want to Apply” platform. Employees
meeting basic criteria such as tenure and performance can apply submit resumes and inquire about openings. The
internal transfer process mirrors external recruitment and employee privacy is strictly protected throughout. Once an
employee passes the interview the original department is not allowed to block the transfer.In 2024 over 100 employees successfully completed internal transfers through the “Ocean Flow Plan.”.* Employee Performance Evaluation .* Supporting Employee Development
The Company continues to optimize the Individual The Company provides academic advancement
Performance Evaluation Procedure and related systems support for skilled workers who have served for more
conducting periodic performance reviews in accordance than three months. For employees who successfullywith the full process of “goal setting – performance complete the academic advancement program andcoaching – performance appraisal – performance review obtain a diploma the Company reimburses 100% of
discussion – appeal process – application and filing the tuition fees. This program covers both associateof performance results.” Performance results serve and bachelor’s degrees. In 2024 Suzhou INOVANCE
as an important basis for employee promotion and partnered with local vocational colleges to launch an
compensation adjustment. During the reporting period academic advancement program supporting a total
100% of the company’s employees underwent regular of 89 employees during the year.
performance and career development evaluations.
076Occupational Health and SafetyINOVANCE has established “zero major safety incidents zero occupational disease cases zeroenvironmental accidents and zero regulatory penalties” as long-term objectives. We are committed
to building a robust occupational health and safety management system that covers all employees and
partners strengthens safety risk management and safety culture and promotes the prevention and
awareness of occupational diseases to safeguard employee health and safety.Annual Key Performance
Occupational Disease Occupational Health Employee signing rate of the
Incident check-ups Coverage Safety Responsibility Agreement
0 Incident 100% 100%
Safety Production
Target Progress Status
Zero major safety accident No major safety incidents Achieved
Zero environmental incident No environmental accidents Achieved
Zero penalty No regulatory penalties Achieved
Zero occupational disease No occupational disease incidents Achieved
Strengthening the Safety Management System
INOVANCE strictly complies with the Work Safety Law of the People’s Republic of China the Law of the People’s
Republic of China on Prevention and Control of Occupational Diseases the Regulations on Work Safety Accident
Reporting and Investigation and the Work Safety Standardization Evaluation Methods for Enterprises as well as
relevant laws and regulations in its operating locations. The Company has established systems such as the EHS
“Three simultaneous” Management System of Construction Projects the Management Measures for Safety Performance
Assessment and the EHS Rewards and Penalties Management Procedures and continues to improve its occupational
health and safety management system. The system covers all business units subsidiaries employment types
and partners..* Occupational Safety Management Structure
During the reporting year the Company strengthened its organizational support for occupational safety with
the management team responsible for the overall management and supervision of occupational safety. Safety
matters are decided at EMT meetings. The Safety Production Committee supports the implementation of safety
technical measures occupational disease prevention and monitoring plans as well as safety inspections and
supervision. In the reporting year the Company held two EMT safety meetings to review and improve three
occupational safety management system documents. The Environment Health and Safety (EHS) Department
is responsible for advancing specific EHS management tasks with EHS officers stationed at key plants and
subsidiaries to communicate and implement corporate EHS requirements.
077Employee Development Guarantee / 2024 SUSTAINABILITY REPORT
The Company implements an all-employee safety responsibility system linking executive compensation to
occupational health and safety performance indicators. All employees have signed the Safety Responsibility
Agreement. Employees may provide suggestions regarding occupational health and safety through labor union
at the workers’ congresses or regular communication activities or submit related feedback via whistleblower
mechanisms or the President’s mailbox.Key EHS Management Systems
EHS “Three Simultaneous” Management System of Construction Projects Occupational Health Management Regulations
Work Injury & Accident Handling Regulations Hazardous Waste Management Regulations
Management Measures for Safety Performance Assessment R&D Laboratory Safety Management System
EHS Rewards and Penalties Management Procedures Limited Space Safety Management Regulations
New Policies Introduced in 2024
Guidelines on Overseas EHS System Framework Construction Management Measures for Safety Performance Assessment
EHS Performance Appraisal Measures of R&D Management Department EHS Rewards and Penalties Management Procedures
Safety Inspection Notification Form of Dalian Zhiding Technology Safety Officer Management System for the Marketing System.* Safety Management System
During the reporting period one new subsidiary obtained ISO 45001 certification. By the end of the reporting
period 57.89% of the Company’s key operating sites were certified under ISO 45001?2018 Occupational
Health and Safety Management Systems. The occupational health and safety management system covered
91.19% of employees. Subsidiary Suzhou INOVANCE passed the evaluation of “Second level Safety ProductionStandardization Enterprise” in Jiangsu Province this year..* Safety Culture Development
The Company regularly conducts safety education and training for all employees through a combination of
online offline and practical drills. Training methods include online file sharing safety examinations onboarding
training special lectures and on-site guidance to improve employees’ safety skills literacy and awareness.During the reporting period the Company organized 67 special safety training sessions covering topics
such as safe operation procedures electrical safety chemical safety special equipment safety and hazard
identification. The training covered all employees as well as suppliers and partners who are required to work
on-site.Case: Work Safety Month
During Work Safety Month in 2024 the Company
carried out specialized safety inspections hosted
safety knowledge competitions and conducted
emergency drills based on business continuity
plans. Safety training was also provided to both
senior employees and all employees.
078Case: Fire Safety Month
In 2024 during Fire Safety Month the Company
organized group-wide fire safety competitions
and volunteer fire brigades to raise fire safety
awareness among all employees and enhance
practical safety capabilities.Product Safety Training
The Company conducted specialized training on product debugging and operational safety to enhance safety
awareness and practical skills of marketing and technical service personnel. In 2024 the Company organized
four general on-site product debugging safety training sessions for new market employees six training sessions
on high-risk scenarios (e.g. working at heights hot work hoisting) and monthly training on safety precautions
during product debugging for frontline service staff.The Company held two safety training sessions for internal employees and partners covering safety operation
procedures for product installation and debugging achieving 100% coverage of the targeted employees and
partners.Managing Operational Safety Risks
To effectively identify and control occupational health and safety risks the Company follows management
documents such as the Hazard and Environmental Factors Identification and Assessment System establishing
procedures for hazard identification assessment and control. Annually the Company identifies and categorizes
occupational health and safety risks associated with company activities products services and operating
conditions.In identifying and assessing safety risks the Company uses relevant standards and guidelines to identify
hazards applying intuitive experience and hazardous conditions assessment methods for risk evaluation.The hazardous condition assessment method is a semi-quantitative evaluation of hazards when operating
in potentially hazardous environments using the probability of an accident (L) the frequency of exposure to
hazardous environments (E) and the potential consequences of an accident (C) to determine the hazard score
(D) and thus the hazard level.
In terms of risk control the company develops corresponding risk control plans and measures for different
hazard levels using a“PDCA”work mechanism to continuously monitor and improve safety risks. During the
reporting period 57.89% of operational sites conducted occupational health and safety risk assessments.
079Employee Development Guarantee / 2024 SUSTAINABILITY REPORT.* Safety Production Review
The company has established a multi-category multi-level occupational health and safety internal review
mechanism conducting regular inspections weekly monthly and annually to identify safety risks at all sites and
propose corrective measures for potential hazards monitoring and following up on remediation. Safety reviews
focus on high-risk areas and key points (e.g. workshop safety chemical management) including compliance
with safety regulations equipment and facility safety and employee operating procedures.The EHS Department compiles a list of issues for situations that do not comply with safety standards
formulates corresponding measures and deadlines and provides targeted rectification guidance. Upon
completion of rectification the EHS Department reviews and verifies the results forming a closed-loop PDCA
mechanism for resolving safety issues.Implementation of Safety Inspections
Responsible Organization Inspection Content Frequency
Conducts routine on-site inspections across all areas and
EHS Department Monthly
supervises hazard rectification
Integrated Supply Chain EHS
Inspects safety-related aspects of equipment Monthly
Department
Workshop team leaders and group
Verifies closure status of issues listed by the EHS Department Weekly
leaders
During the reporting period the EHS Department completed monthly safety inspections for all production
areas achieving a 100% rectification rate for safety hazards.Emergency Management and Hazardous Chemicals Management.* Emergency Management
To rapidly respond to and effectively control various occupational health and safety incidents minimizing
personnel casualties and property damage from accidents the Company has formulated and released the
Production Safety Accident Emergency Rescue Plan which includes 1 comprehensive emergency plan 6 specific
emergency plans and 6 on-site handling schemes.The Company regularly organizes emergency drills for all employees to enhance their capability to handle
accident risks. In the reporting year the Company conducted eight emergency drills covering categories
such as fire evacuation elevator entrapment chemical leaks hazardous waste leakage electric shock forklift
injuries radiation incidents and mechanical injuries. Looking ahead the Company will continue to expand the
scope of emergency plans and drills to further enhance risk response and emergency management capabilities..* Hazardous Chemical Management
To prevent health risks to employees from the use of hazardous chemicals the Company formulated the
Hazardous Chemical Safety Management System the ISC Hazardous Chemicals Management Standards and the
Chemical Leak Emergency Response Procedure to manage hazardous chemicals across their entire life cycle from
procurement transportation and handling storage usage to disposal.
080Lifecycle Management of Hazardous Chemicals
Procurement Review the supplier’s hazardous chemical production qualifications safety data sheets and safety labels; require that only trained and qualified procurement personnel are allowed to perform relevant tasks.Transportation Review qualifications of transportation vehicles escorts and handling personnel and establish strict
and handling operational standards.Storage Use dedicated warehouses equipped with relevant safety equipment with standardized labeling and classified storage; conduct regular storage condition checks.Usage Strictly control operational procedures; require certified operators to wear specified personal protective equipment (PPE) during operations.Disposal Prohibit direct discharge or disposal; hazardous chemicals must be collected and handed over to qualified third-party agencies for professional disposal.In the reporting year the Company sought water-based alternatives
to volatile organic compounds (VOCs) and conducted internal
validation to reduce emissions of harmful gases. Meanwhile the
Company improved process design accuracy to switch from overall
application of flux to point-to-point application in PCB soldering
thereby reducing flux usage and residual waste liquid.In April 2024 Suzhou INOVANCE was named an“Advanced Unit forHazardous Chemical Safety Management”for 2023 by Suzhou Municipal
Government.Occupational Disease Prevention
INOVANCE attaches great importance to employees’ occupational health and safety. The Company strictly
complies with the Law of the People’s Republic of China on the Prevention and Control of Occupational Diseases and
applicable laws and regulations in all operating regions. It has established the Occupational Health Management
Regulations and set a long-term goal of “zero occupational diseases” building and continuously improving
the occupational health and safety management system from the perspectives of system assurance risk
management and routine protection.In terms of occupational disease protection the Company deepens employee prevention and treatment strictly
implements the “Three Simultaneous” measures for occupational health compiles occupational disease hazard
assessment reports implements occupational disease prevention engineering measures and conducts regular
on-site occupational disease hazard detection and occupational health-related hidden danger inspections
annually monitoring and rectifying occupational disease risks. Identified occupational disease hazards this year
include noise acrylic acid tin dioxide and butyl acetate.Furthermore the Company strengthens the management of employees’ occupational health providing
occupational health services to employees. The Company conducts regular health checkups for all employees.For those exposed to occupational disease hazards it establishes individual occupational health files
provides pre-job on-the-job and exit medical checkups and purchases supplementary health insurance.Employees exposed to physical hazards or occupational disease risks are provided with PPE and their use of
such equipment is supervised to ensure workplace health and safety. In addition we have enhanced human-
machine safety design and added safety acceptance processes for equipment to further strengthen the
defense line for employees’ occupational health and safety.During the reporting period the Company achieved a 100% occupational health examination coverage rate
with no occupational disease incidents or deaths caused by occupational diseases reported.
081Inclusive and Responsible Ecosystem Building / 2024 SUSTAINABILITY REPORT
Inclusive and Responsible
Ecosystem Building
INOVANCE is committed to building an equal friendly collaborative inclusive and responsible business
ecosystem that generates economic environmental and social value driving high-quality development
across the industry.Building a Sustainable Supply Chain
Suppliers are vital industrial partners of INOVANCE. The company values the critical support suppliers provide
for our products and services strengthen supply chain security management and actively promotes green
supply chains to enhance value chain synergy and advance sustainable supply chain development.Key Performance in 2024
Pass rate of suppliers included in ESG audits Coverage rate of ESG audits for new suppliers
100%100%
Percentage of suppliers with signed Pass rate of key suppliers’ hazardous chemical
contracts including ESG requirements management and RoHS compliance review
100%100%
Supply Chain Security
As the global political and economic situation becomes increasingly turbulent and the accelerated
reconstruction of the global industrial chain enterprises are enhancing supply chain flexibility and adaptability
to mitigate the potential risk of supply chain disruptions. The company built an autonomous controllable
safe and efficient supply chain by classifying and categorizing suppliers establishing business continuity
management (BCM) mechanisms and planning localized procurement mergers and acquisitions.
082Supplier Classification and Categorization
INOVANCE classifies its 2240 existing suppliers by cooperation and performance levels and categorizes them
by tier of raw material supply and product operation method. The company formulated and issued the Multi-Tier
Supplier Management Standards which involved managing upstream raw materials for key materials defining the
scope of multi-tier supplier management and setting management requirements based on technology quality
supply responsiveness and cost.Supplier Classification
Strategic supplier Supplier to be concerned
By cooperation level
Key supplier General supplier
Excellent supplier Supplier to be improved
By performance level
Qualified supplier Non-qualified supplier
Supplier Categorization
By tier of raw material supply Tier 1 supplier Multi-tier supplier
Manufacturer Service provider
By product operation methods
Agent/trader
Business Continuity Management
As part of our risk management the company established contingency plans for emergency response and
business continuity to reduce losses and impact on business operations due to major risks or emergencies
ensure employee and asset safety maintain continuity in product and service delivery and support the
achievement of our strategic goals.In 2024 the company leveraged ISO 22301 certification to comprehensively advance the building of our
business continuity management system. Using an “assessment-driven building” approach the company
built an end-to-end business continuity management system spanning suppliers the company and customers
and covering key products and customers. Based on a top-down whole-process framework the company
conducted business impact analyses to identify eight key business areas. The company assessed the business
risk according to 28 risk scenarios across five emergency types. For medium and high business risks the
company developed a list of critical risk resources covering personnel equipment products and materials
applications and data and infrastructure and formulated targeted mitigation strategies.During the reporting period the company conducted 13 risk event drills including simulated disruptions in
key supplier deliveries and logistics and practical drills for key business system outages. These drills helped
optimize contingency plans and improve emergency response capabilities. In December 2024 our subsidiary
Suzhou INOVANCE obtained ISO 22301?2019 Business Continuity Management System certification.Supplier Lifecycle Management
INOVANCE has established a comprehensive supplier lifecycle management system that tracks and manages
suppliers through registration admission review performance assessment empowerment training and phase-
out with all stages documented in the management system.
083Inclusive and Responsible Ecosystem Building / 2024 SUSTAINABILITY REPORT
Supplier TQRDC Assessments
The company conducts TQRDC assessments on suppliers annually with monthly assessments on suppliers’
quality and delivery and semi-annual overall assessments on supplier TQRDC performance. TQRDC
assessments are led by the Procurement Strategy Team with support from SQE technical and execution
procurement teams. The Procurement Strategy Team formulates an annual assessment plan and confirms
the assessment list according to supplier categories and transactions coordinating with SQE to execute
the assessment and ultimately rates suppliers as excellent qualified to be improved and non-qualified. For
suppliers who do not pass the performance assessment the company carries out empowerment training to
facilitate continuous improvement in supplier performance. During the reporting period the company assessed
255 suppliers in the TQRDC assessment with a pass rate of 90.20%.
Supplier Assessment Results for the Year
Total number of excellent suppliers Total number of qualified suppliers
29201
Total number of suppliers to be improved Total number of non-qualified suppliers
187
Supplier ESG Management
Our supplier ESG management spans five phases—admission maintenance review performance improvement
and phase-out—enabling dynamic monitoring and management of suppliers’ sustainable practices. The
management scope covers all key suppliers..* Supplier Admission
In 2024 the company upgraded the “EHS & CSR” supplier assessment to “Sustainability” assessment
adding new criteria covering human rights environment and safety aspects. During the reporting period
137 new suppliers completed ESG data collection and admission reviews. All new suppliers signed the Supplier
Management Contract..* Supplier Maintenance
The company regularly conducts green supply chain surveys inviting key suppliers to update ESG data
including 14 categories such as “carbon peaking and carbon neutrality” goals and plans GHG emissions
direct and indirect energy consumption green electricity usage water usage and the proportion of renewable
materials used. During the reporting period the company invited over 200 key suppliers to participate in the
ESG information survey with a response rate of 93.47%..* Supplier Audit
The company conducts annual audits of suppliers which include online and on-site audits of environmental
health and safety and business ethics compliance.
084.* Supplier Performance Improvement
The company conducts management assessments for key suppliers and all suppliers of its subsidiary
INOVANCE Automotive covering sustainability dimensions. Assessment reports are issued by the company
to support suppliers in continuously improving their performance. The company regularly organizes ESG
empowerment training activities for suppliers to support their ESG capabilities.Case: 2024 Green Supply Chain Communication and Awareness Session
On July 23 2024 the company held the “2024 Green Supply Chain Communication and Awareness Session”
via online livestreaming. During the session the company presented its 3030 Green Supply Chain Vision
reviewed the progress of green supply chain development in recent years clarified near-term plans and
actions and specifically explained the three-phase approach for future implementation of green supply
chain assessment and collaborative improvement. Over 200 participants from more than 100 key suppliers
attended and interacted with the livestream session..* Supplier Phase Out
The company eliminates suppliers involved in serious legal violations or acts that severely impact the operation
and management of INOVANCE. Acts that severely impact the operation and management of INOVANCE
include but are not limited to major supply accidents major quality issues leakage of confidential information
major security accidents and violations of business ethics which cause business interruptions asset losses
threats to personal safety and damage to reputation.Responsible Procurement
INOVANCE actively practices the concept of responsible procurement by continuously strengthening oversight
of suppliers in areas such as workplace safety environmental compliance labor rights protection conflict
minerals control hazardous substances and chemical management and business ethics. The company
promotes the development of localized supply chains prioritizes collaboration with local suppliers and
consistently ensures equal treatment of all suppliers including SMEs..* Conflict Minerals Management
The company explicitly commits to not using conflict minerals—such as gold tantalum tungsten tin and their
derivatives—sourced from the Democratic Republic of Congo and its neighboring countries and regions. In
the reporting year the company revised the Measures for Control and Management of INOVANCE Conflict Minerals
extending its applicability to all suppliers.The company has stated in its Supplier Management Contract that its products comply with the Conflict-Free
Sourcing Initiative (CFSI) prohibiting suppliers from providing conflict minerals or their derivatives sourced
from conflict-affected regions mentioned above. Suppliers providing components that contain relevant mineral
content are required to sign the Conflict-Free Minerals Commitment. During new supplier admission the company
includes conflict minerals in its admission review requirements.The company’s production processes involve the use of gold (Au) and tin (Sn). It conducts regular conflict
minerals audits of suppliers including random inspections for higher-risk suppliers with audits performed
by the SQE team. During the reporting period the company conducted conflict minerals audits for relevant
suppliers achieving a 100% audit pass rate.
085Inclusive and Responsible Ecosystem Building / 2024 SUSTAINABILITY REPORT.* Hazardous Substances and Chemicals Management
For hazardous substances management the company follows the EU RoHS Directive. It evaluates and examines
hazardous substances in Supplier Survey Reports (SSR) Supplier Quality Process Audit (QPA) and Incoming
Quality Control (IQC) at certain frequencies. The company is equipped with RoHS rapid testing instruments
capable of directly detecting hazardous substances in incoming materials. During the reporting period the
RoHS compliance audit pass rate for suppliers was 99.96%..* Regulating Supplier Business Conduct
The company promotes transparent procurement and clean transactions requiring suppliers to uphold
business ethics and avoid any unlawful or non-compliant acts. INOVANCE regularly conducts supplier training
and dissemination of business ethics every year. During the reporting period there were no instances of
suppliers being disqualified due to serious ethical violations..* Local Procurement
To further enhance supply chain resilience and promote local economic development INOVANCE has adopted
strategies of “Local Development” “Supplier Relocation” and “Globalized Supply”. The company plans to
intensify efforts to develop local suppliers and continually increase the proportion of local procurement. In line
with the construction progress of production bases the company encourages suppliers to relocate accordingly
to ensure the continuity of local supply. With its increasing globalization efforts INOVANCE will continue
advancing its “Local for Local” strategy to increase the proportion of local procurement and further enhance
supply chain resilience..* Equal Treatment of SMEs
The company values the establishment of strong partnership relations with suppliers and upholds respect
and equal treatment for all suppliers. During the reporting period based on disclosures on the “Credit China”
website the company was not involved in any serious dishonesty incidents related to overdue payments to
SMEs. As at the end of the reporting period the company had no instances where accounts payable (including
notes payable) exceeded RMB30 billion or accounted for more than 50% of total assets.
086Promoting Industrial Cooperation and Development
“Advancing industrial technology for a better world” is INOVANCE’s vision. Achieving this vision requires deep
collaboration across the upstream and downstream segments of the industrial chain. Through technological
innovation talent exchange and knowledge sharing the company aims to build an open and mutually
beneficial industrial ecosystem. In 2024 the company continued to deepen ecosystem cooperation enhance
front-end and back-end coordination along the industrial chain and work with partners to jointly promote
sustainable development of the industry..* Industrial Ecosystem Collaboration Strategy
The company’s industrial ecosystem collaboration is coordinated by the Department of Ecosystem StrategicDevelopment in collaboration with business departments. The company’s core strategies are “industry-educationintegration industry-research integration event organization joint development of a talent ecosystem and trainingfor empowerment”. Through a combination of online and offline approaches the company promotes knowledge
sharing and talent exchange across the industrial chain strengthens ecosystem collaboration and realizes mutual
benefit within the ecosystem.Training Empowerment Industry-Education Integration
Establishing an online livestream learning Integrating industry cases and
platform to provide technical and experience into the teaching curricula of
business management empowerment partner universities to build a pipeline of
training for ecosystem partners. professional talent for the industry.Joint Development of a Talent Ecosystem Event Organization
Partnering with ecosystem enterprises for Actively organizing innovation
dedicated talent recruitment events; competitions for students at universities
establishing employment and internship and vocational colleges based on
bases with universities to nurture industry industry development trends.talent.Industry-Research Integration
Co-creating solutions with multiple core customers; establishing joint laboratories with suppliers and
industry partners; engaging in research cooperation with several universities and establishing joint
laboratories to tackle cutting-edge technologies..* Industrial Cooperation and Exchange Cases
INOVANCE and Harbin Institute of Technology Joint Talent Development Program
The company and Harbin Institute of Technology have launched a joint program to train engineering master’s
and doctoral students. Master’s students study on campus for one year and train at the company for two years;
doctoral students study on campus for two years and train at the company for three years. As at the end of the
reporting period two jointly trained master’s students had successfully graduated.
087Inclusive and Responsible Ecosystem Building / 2024 SUSTAINABILITY REPORT
INOVANCE Cup National Innovation Competition for Intelligent Automation
The first INOVANCE Cup National Innovation Competition for Intelligent Automation was launched in
November 2023 and concluded in August 2024. The competition attracted 1068 teams from 255 universities.Following intense competition four teams from Harbin Institute of Technology Shenzhen Institute of
Information Technology and other institutions won first prize at the national level; 12 teams won second
prize and 82 teams won third prize. In addition to generous cash prizes first prize winners received job offers
from INOVANCE while second prize winners were granted direct access to campus recruitment interviews
at the company. Special awards were also presented including Best Teamwork Award Best Engineering
Implementation Award Most Popular Project Award and Best Business Value Award.The second “INOVANCE Cup” Competition was launched in September 2024 and is expected to conclude in
August 2025.The First INOVANCE Cup National Innovation Competition for Intelligent Automation
Industrial Automation Knowledge Popularization
The company launched short video accounts “INOVANCE Speaks on Industrial Automation” and “INOVANCEPlanet” to educate the public about the industrial automation industry. In 2024 the company released
85 videos attracting over 25 million views. As at the end of the reporting period “INOVANCE Planet” had
launched approximately 1900 courses with cumulative views reaching 300000.Class Platfrom of INOVANCE Planet
088Contributing to Social Development.* Community Public Welfare and Charitable Donations
INOVANCE actively participates in community construction and fulfills its corporate social responsibility
by creating a community-enterprise interaction platform. The company encourages employees to engage
in community volunteer services taking volunteer service as a bridge of community communication and
contributing to the construction of a harmonious and livable community.In 2024 the Employee Volunteer Association organized three river patrols one free clinic and one
environmental trash cleanup activity. Registered volunteers contributed a total of 960 hours of service with
130 instances of volunteer participation.
INOVANCE is deeply committed to philanthropy. During the reporting period the company made charitable
donations totaling RMB2789000 primarily for disaster relief education assistance and support for the
disabled and disadvantaged.INOVANCE Employees Actively Participate in Donation Certificate Issued by Charity
Community Public Welfare Activities Federation of Huarong County Yueyang.* Supporting Rural Revitalization
The company actively responds to the Party Central Committee’s call to prioritize agricultural and rural
development and supports rural revitalization projects. In 2024 Suzhou INOVANCE partnered with the
local government to launch a “Party Building for Agricultural Support” initiative encouraging employees
to purchase “Taihu Hengjing” rice from Suzhou’s Hengjing Subdistrict at a co-construction price thereby
supporting local agricultural development.
089Report Appendix / 2024 SUSTAINABILITY REPORT
Report Appendix
Appendix 1: ESG Key Performance Table
Economic Performance1
Category Indicators Unit 2024 2023 2022
Revenue Million RMB 37040.95 30419.93 23008.31
Categorized by market segmentation of revenue
Domestic Domestic revenue amount Million RMB 35001.62 28680.11 22123.02
revenue Proportion of domestic revenue % 94.49 94.28 96.15
Overseas Overseas revenue Million RMB 2039.33 1739.82 885.29
revenue Proportion of overseas revenue % 5.51 5.72 3.85
Growth rate of revenue % 21.77 32.21 28.23
Operating costs Million RMB 32806.04 26278.78 19783.51
Basic EPS RMB per share 1.60 1.78 1.64
Economic Net profit attributable to shareholders of the listed
Performance company Million RMB 4285.49 4741.86 4319.76
Growth rate of net profit attributable to shareholders
of the listed company % -9.62 9.77 20.89
Net cash flow from operating activities Million RMB 7200.44 3369.92 3200.83
Total assets Million RMB 57178.82 48957.56 39211.61
Weighted average ROE % 16.52 21.66 24.31
Retained earnings Million RMB 19438.85 16358.11 12573.87
Total expenses for employee salaries and benefits Million RMB 6017.42 4856.49 3962.80
Human capital return on investment 2 % 1.70 1.85 1.81
Financial assistance received from government Million RMB 115.62 147.14 153.84
Notes:
1. Economic performance data can be found corresponding figures in the annual financial reports of 2024 2023 and 2022. If any data difference occurs the
data in the annual financial reports shall prevail.
2. Human Capital Return on Investment = [revenue - (operating costs - total expenses for employee salaries and benefits)] / total expenses for employee
salaries and benefits.Environmental Performance
Category Indicators Unit 2024 2023 2022
Total GHG emissions1 tCO2e 8001399.84 /
Scope 1 Direct GHG emissions3 tCO2e 4091.56 1807.90 1601.90
Scope 2 Indirect GHG emissions4 tCO 42e 148705.14 125602.71 82155.14
4
Addressing Scope 3 Other indirect GHG emissions5 tCO2e 7848603.14 /
2/
Climate
Change Category 1 Purchased goods and services tCO2e 7737892.62 / /
Category 2 Capital goods tCO2e 22107.62 / /
Category 3 Fuel- and energy-related activities tCO2e 2870.64 / /
Category 4 Upstream transportation and distribution tCO2e 15889.96 / /
090Category Indicators Unit 2024 2023 2022
Category 5 Waste generated in operations tCO2e 6.43 / /
Category 6 Business travel tCO2e 25491.98 / /
Category 9 Downstream transportation and distribution tCO2e 40821.27 / /
Addressing Category 13 Downstream leased assets tCO2e 3522.63 / /
Climate
Change 6 tCO2e / RMB 1 GHG Emission intensity in operation 4.13 4.194 3.794
million revenue
Reduction of GHG emissions7 tCO?e/year 12170.82 / /
Carbon credit tCO2e 0 / /
Opportunities Proportion of revenue from clean technology-related % 49.67 /
in Clean products and services
859.63
Technology Scope 4 Avoided GHG emissions tCO?e/year 14447904 10748527 /
Ton of standard
Total energy consumption9 34795.37 28425.21 18679.57
coal
Ton of standard
Total energy consumption intensity coal/RMB 1 0.94 0.93 0.81
million revenue
Ton of standard
Total direct energy consumption10 1129.39 970.61 844.38
coal
Gasoline consumption L 186108.89 216568.12 220972.87
Diesel consumption L 74708.78 65568.00 103625.40
Natural gas consumption m3 677008.00 467096.00 317129.00
Liquefied petroleum gas consumption L 12320.28 86416.17 91442.00
Ton of standard
Energy Use Total indirect energy consumption11 33665.98 27454.59 17835.20 coal
Electricity consumption12 MWh 271522.07 222514.15 145119.59
Steam consumption Ton 3113.00 1132.00 0
Renewable energy consumption13 MWh 19624.75 8742.33 5178.55
Proportion of renewable energy in total energy
%6.913.773.40
consumption
Total installed capacity of renewable energy
14 MW 18.83 / /generation devices
Energy saved from new energy saving projects kWh/year 1458755.00 1964500.00 /
Total investment in energy efficiency projects k RMB 670.90 / /
Annual operating cost reduction through energy
k RMB/year 1167 / /
efficiency projects
Total water withdrawal m3 1085190.56 1021444.28 605987.00
m3/RMB 1
Water withdrawal intensity 33.60 26.34
million revenue 29.30
Water Water withdrawal at operational sites in water-
Resources m3 867408.66 / /stressed areas15
Utilization
Resource recycling m3 3260000.00 / /
Water recycling rate16 % 75.03 / /
Waste gas emissions
Total waste gas emissions m3 1989403314 1097885202 /
m3/RMB 1
Waste gas emission intensity 36090.99 /
million revenue 53708.21
Particulate matter (PM) emissions kg 1238.00 199.67 329.50
Pollutant Nitrogen oxides (NOx) emissions kg 1158.46 1160.09 /
Discharge Volatile organic compounds (VOCs) emissions kg 12323.76 6969.50 824.50
Tin and its compounds emissions Ton 0.79 0.03 0.02
Sulfur oxides (SOx) emissions Ton 0.76 / /
Hazardous air pollutants (HAPs) emissions Ton 0 / /
Wastewater discharge
Total wastewater discharge m3 313389.00 273310.09 /
091Report Appendix / 2024 SUSTAINABILITY REPORT
Category Indicators Unit 2024 2023 2022
m3/RMB 1
Wastewater discharge intensity
million revenue 8.46
8.98/
Domestic wastewater discharge volume m3 295080.00 228155.05 64959.00
Chemical oxygen demand (COD) Ton 93.32 114.17 37.66
Pollutant Ammoniacal Nitrogen (NH3-N) Ton 10.09 7.81 2.65
Discharge
Total phosphorus discharge Ton 0.83 0.62 0.32
Total nitrogen discharge Ton 10.60 9.86 5.73
Animal and vegetable oils discharge Ton 4.23 4.63 3.13
Suspended solids (SS) emissions Ton 40.70 50.00 36.25
Waste emissions
Total waste emissions17 Ton 6570.72 /23 /23
Ton/RMB 1
Waste emission intensity 0.18 /23 /23million revenue
Total waste recycled/reused18 Ton 4869.90 /23 /
Total hazardous waste19 Ton 1234.99 694.62 412
Hazardous waste treated20 Ton 1234.99 694.62 /
Ton/RMB 1
Hazardous waste emission intensity 0.03 0.02 /million revenue
Waste Hazardous waste recycled/reused
21 Ton 232.63 94.53 /
Treatment Total hazardous waste disposed by landfill Ton 0 0.50 /
Total hazardous waste incinerated with energy recovery Ton 339.4 53.3 /
Total hazardous waste incinerated without energy
Ton 662.98 522.38 /
recovery
Total hazardous waste used other methods Ton 0 23.91 /
Toxic emission and leakage incidents Time 0 / /
Total non-hazardous waste 22 Ton 5335.73 /23 /23
Ton/RMB 1
Non-hazardous waste emission intensity /23 /23
million revenue 0.14
Non-hazardous waste recycled/reused Ton 4637.27 /23 /
Amount of environmental protection training duration Hour 7504.00 7439.00 /
Total environmental investment during the reporting
Million RMB 10.86 6.02 /
period
Proportion of key operational sites certified under ISO
%66.6766.67/
Environmental 14001
Compliance Proportion of key operational sites that conducted
Management % 66.67 66.67 /environmental risk assessments
Number of incidents fined for violating environmental
/00/
protection laws and regulations
Total fines incurred for violations of environmental
RMB 0 0 /
protection laws and regulations
Notes:
1. Total GHG emissions comprise Scope 1 direct GHG emissions Scope 2 indirect GHG emissions and some Scope 3 other indirect GHG emissions. Scope 1
includes fixed combustion emissions from cooking equipment mobile combustion emissions from company-owned vehicles forklifts and leased vehicles for
operations as well as fugitive emissions from air conditioning chillers and fire-fighting equipment. Scope 2 includes indirect emissions from purchased
electricity and steam. The calculations for Scope 3 are based on the calculation categories in the GHG Protocol covering categories 1 2 3 4 5 6 9 and 13.
2. Due to significant changes in the methodology for calculating Scope 3 emissions in 2024 the Scope 3 data for 2024 are not comparable to previous years.
To avoid misleading readers the previous year’s data is marked with a “/”.
3. The calculation is based on ISO 14064-1:2018 and the IPCC 2006 Guidelines for National GHG Inventories and the Guidelines for Accounting and Reporting
GHG Emissions from Enterprises of Other Industries (Trial). Emission sources include fixed combustion from cooking equipment mobile combustion from
company-owned vehicles forklifts and leased vehicles for operations as well as fugitive emissions from air conditioning chillers and fire-fighting equipment.The company is not involved in industrial process emissions. Only CO? is included in the GHG calculations. Calorific values follow the lower heating value
standards in the General Rules for Calculation of the Comprehensive Energy Consumption (GB/T 2589). Carbon oxidation rates and other parameters are
referenced from the corresponding default values in the Guidelines for Accounting and Reporting GHG Emissions from Enterprises of Other Industries (Trial)
(2015) and the unit carbon content per energy unit is referenced from the IPCC 2006 Guidelines for National GHG Inventories.
4. Indirect GHG emissions from purchased electricity and steam are calculated in accordance with ISO 14064-1:2018 and the General Guideline of the GHG
Emissions Accounting and Reporting for Industrial Enterprises (GB/T 32150-2015). Only CO? is included in the GHG calculations. For emissions from purchased
092electricity in 2024 emission factors for operational sites located in China refer to the provincial average carbon dioxide emission factors for electricity in 2022
in the Announcement on the Release of the 2022 National Power Carbon Dioxide Emission Factor issued by the Ministry of Ecology and Environment. These
same factors are also used to recalculate and update 2023 and 2022 data. In calculating emissions from purchased electricity of overseas operational sites
emission factors from the national electricity sectors in ecoinvent version 3.10 are used. For emissions from purchased steam emission factors are based on
the thermal energy emission factors in the Guidelines for Accounting and Reporting GHG Emissions from Enterprises of Other Industries issued by the National
Development and Reform Commission.
5. The calculation is based on the GHG Protocol and the General Guideline of the GHG Emissions Accounting and Reporting for Industrial Enterprises (GB/T
32150-2015). The calculation for Scope 3 covers categories 1 2 3 4 5 6 9 and 13. Categories 7 8 10 11 12 14 and 15 are deemed non-material indirect
emission sources and are not included in the calculation. Emission factors for Scope 3 are based on ecoinvent version 3.10 and the UK Government GHG
Conversion Factors for Company Reporting 2023.
6. GHG emissions in operation = scope 1 direct GHG emissions + scope 2 indirect GHG emissions.
7. Reduction of GHG emissions = GHG emissions reduced from renewable energy used (in operation) + GHG emissions converted from the aenergy saved from
new energy saving projects.
8. Clean technology-related products and services are consistent with those included in the calculation of Scope 4. In the company’s 2023 ESG Report this
indicator was referred to as “Proportion of Energy-Saving Material-Conserved and Carbon-Reduced Product Offering”.
9. It is the sum of the total direct energy consumption and the total indirect energy consumption.
10. It is the sum of all types of direct energy used which are converted into standard coal using conversion factors from the General Rules for Calculation of the
Comprehensive Energy Consumption (GB/T 2589-2020): Natural gas = 1.2143 kgce/kg; gasoline = 1.4714 kgce/kg; diesel = 1.4571 kgce/kg; LPG = 1.7143 kgce/kg.
11. It is the sum of all types of indirect energy used which are converted into standard coal using conversion factors from the General Rules for Calculation of
the Comprehensive Energy Consumption (GB/T 2589-2020): Electricity (equivalent value) = 0.1229 kgce/kWh; steam (equivalent value) = 0.0341 kgce/MJ.
12. Electricity consumption includes electricity purchased from the grid and from third-party distributed renewable energy facilities as well as electricity
generated and consumed from the company’s own distributed renewable energy facilities.
13. Renewable energy includes solar wind hydro biomass and other sustainable non-depletable sources. Total renewable energy consumption includes
green electricity rights purchased via green certificates electricity generated and consumed by company-owned renewable energy facilities and photovoltaic
electricity purchased via rooftop leasing agreements at preferential rates.
14. It includes the capacity of company-owned photovoltaic installations and those constructed under the EMC model.
15. In 2024 the company identified a total of 14 operational sites located in water-stressed areas.
16. Water recycling rate = recycled water volume / (total water withdrawal + recycled water volume).
17. Total waste emissions = hazardous waste emissions + non-hazardous waste emissions.
18. Total waste recycled/reused = hazardous waste recycled/reused + non-hazardous waste recycled/reused.
19. Hazardous waste includes waste organic solvents packaging containers rags and gloves spent surface treatment liquids grinding sludge emulsified
waste and other hazardous waste listed in the National Catalogue of Hazardous Wastes.
20. Due to an expansion in the statistical scope 2023 data on hazardous waste treated has been restated and corrected.
21. Due to an expansion in the statistical scope 2023 data on hazardous waste recycling/reuse has been restated and corrected.
22. Non-hazardous waste includes waste cardboard wooden pallets scrap copper iron aluminum and plastic bags.
23. Due to an expansion in the statistical scope 2024 non-hazardous waste data is not comparable to data from previous years. To avoid misleading readers
the previous year’s data is marked with a “/”.Social Performance
Category Indicators Unit 2024 2023 2022
Total number of product and service incidents in violation of laws and regulations / 0 0 0
Sales volume of products recalled due to safety and health reasons in already sold or
RMB 0 0 0
delivered products 1
Proportion of products sold or shipped that have been recalled for safety and health issues % 0 0 0
Number of safety and health incidents of products and services in violation of laws and
/000
regulations
Number of complaints received about products and services 2 / 2 5 0
Product
and Complaint handling rate % 100 100 100
Service Below Below one
Safety Proportion of online sales
3 % one in a /in a million
and million
Quality Total number of illegal and non-compliant incidents concerning customer privacy
Customer satisfaction score Point 70.86 69.75 /
Number of labeling incidents of products and services in violation of laws and regulations / 0 0 0
Number of violations of marketing and communications laws and Regulations5 / 0 0 0
Proportion of product revenue from conflict-affected and high-risk areas 6 % 0 0 0
Number of major product safety and quality incidents7 / 0 0 0
Amount of losses from major product safety and quality incidents RMB 0 0 0
093Report Appendix / 2024 SUSTAINABILITY REPORT
Notes:
1. Safety and health reasons refer to product issues that affect functionality cause harm to users or expose the company to legal liability prompting
customers to return exchange or replace the product. Proportion of products recalled due to safety and health reasons in already sold or delivered products
= sales volume of products recalled due to safety and health reasons in already sold or delivered products (RMB) ÷ total sales (RMB) × 100%.
2. It includes formal complaints submitted by customers in writing and complaints filed with government authorities.
3. Proportion of online sales = online-generated revenue (excluding revenue via the order management system) ÷ total revenue (RMB) × 100%.
4. The total number of illegal and non-compliant incidents concerning customer privacy refers to the number of illegal and non-compliant incidents resulting
from major customer privacy leakage as confirmed by court rulings or administrative penalties from government authorities.
5. Marketing and communications laws and regulations include the Advertising Law of the People’s Republic of China the Law of the People’s Republic of China
on the Protection of Consumer Rights and Interests the Anti-Unfair Competition Law of the People’s Republic of China and other laws and regulations with
marketing rules for products and services. Such violations are determined based on formal complaints or administrative penalties from the government
authorities.
6. According to the OECD conflict-affected and high-risk areas are regions experiencing armed conflict widespread violence or other threats to personal
safety often associated with human rights abuses and violations of international and domestic laws. Proportion of product revenue from conflict-affected
and high-risk areas = sales of products from conflict-affected and high-risk areas (RMB) ÷ total sales (RMB) × 100%.
7. Major product safety and quality incidents are determined based on responsibility assessments issued by relevant government authorities.
Category Indicators Unit 2024 2023 2022
R&D investment Million RMB 3147.08 2624.15 2229.27
R&D investment as a percentage of revenue1 % 8.50 8.63 9.69
Number of R&D personnel / 5538 5482 4793
Proportion of R&D personnel2 % 22.65 23.15 23.66
Innovation- Number of new patent applications / 685 982 875
Driven
Development Number of new patents granted / 572 506 718
Number of new trademarks approved / 59 33 81
Number of new copyrights approved / 79 61 /
Total number of valid patents / 2375 / /
Number of invention patents applied to major business3 / 450 / /
Notes:
1. R&D investment as a percentage of revenue = R&D investment (RMB) ÷ revenue (RMB) × 100%; revenue coverage is consistent with the scope of the
consolidated financial statements.
2. Proportion of R&D personnel = number of R&D personnel ÷ number of full-time labor contract employees × 100%.
3. Major business refers to business excluding investment income non-operating income gains/losses from changes in fair value etc. Invention patents refer
to patents classified as invention patents in the total number of valid patents excluding design and utility model patents.Category Indicators Unit 2024 2023 2022
Monetary value of data security incidents 1 Million RMB 1.00 0 /
Total number of information security vulnerabilities / 1181 1955 /
Total number of illegal and non-compliant incidents concerning customer privacy 2 / 0 0 /
Data Security
and Privacy Monetary value of customer privacy breach incidents RMB 0 0 /
Protection
Number of employee personal information security training sessions Time 21 17 15
Number of employees covered by personal information security training / 21858 25487 13342
Personal information security training coverage rate3 % 84.81 100 /
Notes:
1. The monetary value of data security incidents is determined based on court rulings. The 2024 data reflects one case where an employee leaked company
trade secrets resulting in a loss of RMB 1 million as determined through civil mediation by a People’s Court.
2. Illegal and non-compliant incidents concerning customer privacy are determined based on court rulings or administrative penalties.
3. The company regularly organizes personal information security training. The training coverage rate does not include employees who were planning to
resign or on leave during the training period.
094Category Indicators Unit 2024 2023 2022
Total number of employees / 26518 25487 20256
Number of foreign employees / 444 456 /
Profit per employee Million RMB 0.16 0.19 /
Labor contract signing rate % 100 100 100
Proportion of employees from ethnic minorities and/or disadvantaged groups 1 % 5.98 7.91 /
Proportion of employees by employment type
Full-time labor contract employees / 24445 23685 20256
Full-time dispatched employees / 1792 1420 /
Part-time employees (internship apprentices working students and retired
employees rehired in total) / 281 382 /
Proportion of part-time and dispatched employees % 7.82 7.07 /
Proportion of full-time labor contract employees % 92.18 92.93 /
Proportion of employees by gender2
Proportion of female employees % 25.41 26.19 /
Proportion of male employees % 74.59 73.81 /
Proportion of employees by age2
Number of employees aged over 50 / 303 317 /
Number of employees aged 30–50 / 14403 13422 /
Number of employees under 30 / 11713 11748 /
Proportion of employees aged over 50 % 1.15 1.24 /
Proportion of employees aged 30–50 % 54.52 52.66 /
Proportion of employees under 30 % 44.34 46.09 /
Proportion of employees by education level2
Number of employees with doctoral degrees / 68 58 52
Employment Number of employees with master’s degrees / 3862 3395 2505
Number of employees with bachelor’s degrees / 7580 7880 6297
Number of employees with junior college degree or below / 14909 14154 11402
Proportion of employees with doctoral degrees % 0.26 0.23 0.26
Proportion of employees with master’s degrees % 14.62 13.32 12.37
Proportion of employees with bachelor’s degrees % 28.69 30.92 31.09
Proportion of employees with junior college degree or below % 56.43 55.53 56.29
Total number of newly-recruited employees3 / 14005 8995 /
Newly-recruited employees by gender3
Number of newly-recruited male employees / 10888 6723 /
Number of newly-recruited female employees / 3117 2272 /
Newly-recruited employees by age 3
Number of newly-recruited employees aged over 50 / 12 17 /
Number of newly-recruited employees aged 30–50 / 4442 3149 /
Number of newly-recruited employees under 30 / 9551 5829 /
Proportion of newly-recruited employees by gender 4
Proportion of newly-recruited male employees % 77.74 74.74 /
Proportion of newly-recruited female employees % 22.26 25.26 /
Proportion of newly-recruited employees by age 34
Proportion of newly-recruited employees aged over 50 % 0.09 0.19 /
Proportion of newly-recruited employees aged 30–50 % 31.72 35.01 /
Proportion of newly-recruited employees under 30 % 68.20 64.80 /
Employee turnover rate5 % 27.26 24.42 27.90
Voluntary turnover rate % 24.53 23.79 /
095Report Appendix / 2024 SUSTAINABILITY REPORT
Category Indicators Unit 2024 2023 2022
Employee turnover rate by gender3
Male employee turnover rate % 27.31 23.73 /
Female employee turnover rate % 27.12 26.36 /
Employee turnover rate by age3
Turnover rate for employees aged over 50 % 21.40 12.30 /
Turnover rate for employees aged 30–50 % 22.72 20.41 /
Turnover rate for employees under 30 % 32.98 29.32 /
Average length of service (in the company) for male employees Year 3.17 / /
Average length of service (in the company) for female employees Year 3.19 / /
Proportion of female employees in junior management6 % 18.41 15.60 /
Employment Proportion of female employees in mid-level management
7%14.2914.50/
Proportion of female employees in senior management8 % 10.71 6.60 /
Proportion of female employees in management levels9 % 15.75 14.70 /
Proportion of female employees in revenue-generating roles10 % 16.01 15.00 /
Proportion of female employees in STEM-related positions11 % 13.69 9.90 /
Proportion of internal employment12 % 2.93 12.66 /
Proportion of employees undertaking regular performance and career
development review13 % 100 100 100
Percentage of employees below senior management level that stock option
incentive and long-term incentive program applies % 97.94 98.48 /
Number of penalties received for violating employment and labor laws and
regulations / 0 0 0
Notes:
1. Minority and/or vulnerable groups include: ethnic minorities of Chinese nationality foreign employees and employees with disabilities.
2. In accordance with the General Data Protection Regulation (GDPR Regulation (EU) 2016/679) companies may not process personal data such as gender
age and education level without explicit consent or other legal basis. In compliance with the above the following disclosed employee demographic statistics
exclude data from the company’s entities and branches located in EU member states.
3. Statistics on newly recruited employees and employee turnover include only employees of entities and branches within the Chinese mainland. Due to the
limited size and data collection challenges of overseas entities and branches as well as the small impact of the absence of such data on indicators the data
on overseas employees is not included.
4. Proportion of newly recruited employees by category = total number of newly recruited employees in the category ÷ total number of newly recruited
employees × 100%. This differs from the statistical method used in the company’s 2023 ESG report. To improve comparability historical data have been
adjusted in accordance with the current year’s methodology.
5. Employee turnover rate = number of employees who left ÷ (number of employees who left + number of employees at the end of the period) × 100%.
Dispatched and part-time employees are excluded in the aforementioned number of employees.
6. Proportion of female employees in junior management = number of female employees in junior management ÷ total number of junior management
employees × 100%. Junior management is defined as heads of third-level departments and lower.
7. Proportion of female employees in mid-level management = number of female employees in mid-level management ÷ total number of mid-level
management employees × 100%. Mid-level is defined as second-level department heads (including deputies).
8. Proportion of female employees in senior management = number of female employees in senior management ÷ total number of senior management
employees × 100%. Senior management refers to heads (including deputies) of first-level departments business divisions branches and subsidiaries
excluding statutory “senior executives” in corporate governance.
9. Proportion of female employees in management levels = number of female employees in management levels ÷ total number of employees in management levels × 100%.
10. Proportion of female employees in revenue-generating roles = Number of female employees in revenue-generating positions ÷ Total number of
employees in such positions × 100%. Revenue-generating roles are defined as the direct management roles in sales and other departments or the roles that
directly contribute to the output of products or services.
11. Proportion of female employees in STEM-related positions = number of female employees in STEM-related positions ÷ total number of employees in
STEM-related positions × 100%. STEM stands for science technology engineering and mathematics. STEM professionals apply their knowledge of science
technology engineering or mathematics in their daily work.
12. Proportion of internal employment = number of internal employment ÷ (number of internal employment + number of newly recruited employees) × 100%.
13. Probationary employees are not subject to regular performance and career assessments. This indicator excludes them accordingly.
096Category Indicators Unit 2024 2023 2022
Number of work-related injuries 1 Time 26 31 36
Number of lost workdays due to work-related injuries Day 2340.00 2614.50 1315.00
Lost workday rate due to work-related injury 2 / 6.44 8.841 /
Lost-time injury frequency rate 3 / 0.36 0.521 /
Lost-time injury severity rate 4 / 0.03 0.041 /
Number of Employees of Occupational Disease Risk Posts / 1008 685 349
Number of occupational disease cases / 0 0 0
Number of fatalities due to occupational disease / 0 0 0
Proportion of key operational sites certified under ISO 45001 % 57.89 / /
Occupational Proportion of key operational sites with health and safety risk assessments
Health and conducted
%57.89//
Safety Proportion of employees represented by formal management-worker health
and safety committees 5 % 100 100 100
Employee physical examination coverage rate 6 % 100 100 100
Total investment in work injury insurance Million RMB 7.05 / /
Work injury insurance coverage rate % 100 / /
Total investment in workplace safety liability insurance 7 RMB 0 / /
Workplace safety liability insurance coverage rate7 % 0 / /
Number of participants in safety training sessions / 46307 38407 40437
Number of safety training sessions conducted Time 150 185 64
Number of penalties received for violating occupational health and safety
laws and regulations / 0 0 0
Notes:
1. All work-related injury indicators cover the entire workforce including full-time dispatched and part-time employees. The company expanded its safety
data governance in the current year to include all employees. Data for 2023 regarding the lost workday rate due to work-related injury lost-time injury
frequency rate and lost-time injury severity rate were revised accordingly for comparability.
2. Lost workday rate due to work-related injury = number of lost workdays due to work-related injuries × 200000 ÷ total working hours.
3. Lost-time injury frequency rate = total number of lost-time injury incidents × 1000000 ÷ total working hours; the total number of lost-time injury incidents
is the total number of work-related injuries.
4. Lost-time injury severity rate = number of lost workdays due to work-related injuries × 1000 ÷ total working hours.
5. In practice formal management-worker health and safety committees refer to the work safety committees established by the company’s branches and
subsidiaries.
6. Based on the company’s management practices probationary employees are not eligible for the company’s annual physical examination program; thus
they are excluded from this calculation.
7. In accordance with the Work Safety Law of the People’s Republic of China and related regulations the company does not engage in production activities in
high-risk sectors such as coal mining non-coal mining or hazardous chemicals and is therefore not subject to the mandatory requirement to purchase
workplace safety liability insurance.Category Indicators Unit 2024 2023 2022
Number of key operational sites reviewed and assessed human right protection performance / 8 4 4
Total number of discrimination and harassment incidents / 0 0 0
Number of labor dispute cases1 / 17 15 11
Number of violations related to employment and dismissal compensation and benefits work
Employee / 0 0 0hours and leave equal opportunity anti-discrimination etc.Rights
Percentage of employees who received training on diversity discrimination and/or harassment % 100 100 100
Proportion of Employees Covered by Collective Negotiation Agreement2 % 84.74 / /
Proportion of employees who have formally elected as employee representatives3 % 88.72 89.10 /
Social Insurance Coverage Rate % 100 100 100
Notes:
1. Such cases include disputes related to non-compete agreements.
2. Proportion of employees covered by collective negotiation agreement = number of labor contract employees covered by collective negotiation agreement ÷
total number of labor contract employees. Probationary employees are excluded from this indicator. Due to changes in the data scope and the high cost of
retroactive revision data for 2022 and 2023 are not disclosed here.
3. The number of employees participating in labor unions equals the number of employees represented by formally elected representatives; therefore the
percentage of employees covered by elected representatives equals the union coverage rate.
097Report Appendix / 2024 SUSTAINABILITY REPORT
Category Indicators Unit 2024 2023 2022
Employee training coverage rate % 100 100 100
Annual training expenditure1 Million RMB 2.91 / /
Average training expenditure per employee1 RMB 109.62 232.89 /
Employee training coverage rate by gender
Percentage of female employees covered by training % 100 100 100
Employee
Percentage of male employees covered by training % 100 100 100
Training
Total employee training hours 1 Hour 719255.90 686347.40 158996.00
Average training hours per employee1 Hour 27.12 26.93 23.56
Average training hours by gender
Average training hours for female employees1 Hour 27.12 26.93 23.56
Average training hours for male employees1 Hour 27.12 26.93 23.56
Notes:
1. Statistics only include training activities conducted via the “INOVANCE Academy” platform. Training conducted through other channels is not covered. The
performance indicators include all employees—full-time labor contract employees dispatched employees and part-time employees.Category Indicators Unit 2024 2023 2022
Total number of existing suppliers / 2240 2592 /
Number of active suppliers1 / 1463 1528 /
Number of suppliers from the Chinese mainland / 2179 2552 /
Number of suppliers from Hong Kong Macao Taiwan and overseas regions / 61 40 /
Supplier audit
Percentage of key suppliers assessed for sustainability 2 % 93.47 43 /
Number of new suppliers assessed for ESG / 137 231
Pass rate of ESG assessments of new suppliers % 100 100 /
Pass rate of on-site ESG assessments of new suppliers % 100 100 /
Percentage of total revenues from products containing minerals from conflict-affected
Sustainable and high-risk areas coming from suppliers that have been verified conflict-free 3 % 0 0 0
Supplier
Management Percentage of supplier accessibility to conflict-minerals information % 100 100 /
Percentage of suppliers with signed contracts including ESG requirements4 % 100 100 100
Supplier performance improvement
Number of suppliers found non-compliant with ESG standards during assessment / 0 / /
Number of suppliers identified with significant/potential negative ESG impacts 5 / 0 0 /
Number of suppliers with significant/potential ESG impacts that were terminated / 0 0 /
Total number of suppliers that implemented corrective measures for negative ESG
impacts / 0 0 /
Green supply chain survey
Number of key suppliers that responded to the green supply chain survey6 / 229 131 /
Response rate of key suppliers to the green supply chain survey7 % 93.47 64 /
098Category Indicators Unit 2024 2023 2022
Supplier training empowerment
Sustainable
Supplier Number of key supplier empowerment training sessions / 5 2 /
Management
Coverage rate of integrity training and education for key suppliers % 100 100 /
Amount of overdue accounts payable (including notes payable) at the end of the
reporting period8 RMB 0 / /
Equal
Treatment of Amount of overdue payments to SMEs at the end of the reporting period8 RMB 0 / /
SMEs
Proportion of distributors in the distributor network who participated in regular internal
product and service training % 100 100 100
Notes:
1. Active suppliers refer to the suppliers that conducted transactions with the company during the reporting year.
2. Key suppliers refer to the group of suppliers that ranked by procurement amount account for the top 80% of annual procurement value within each
material category.
3. Proportion of product revenue involving minerals from conflict-affected and high-risk areas provided by suppliers that have passed conflict-free mineral
audits = sales revenue (RMB) of such products provided by certified conflict-free suppliers ÷ total sales (RMB) × 100%.
4. The ESG clauses referenced here include the Supplier Code of Conduct and contract clauses addressing environmental labor human rights and business
ethics (e.g. anti-corruption).
5. Significant/potential negative impacts refer to incidents such as major supply disruptions severe quality issues breaches of confidential information major
safety accidents or violations of business ethics that lead to operational interruptions asset losses threats to personal safety or reputational damage.
6. Due to optimized survey methodology the original indicator “Number of key suppliers undergone GHG inventory during the reporting period” has been
revised to “Number of key suppliers that responded to the green supply chain survey”.
7. Due to optimized survey methodology the original indicator “Coverage of key suppliers undergone GHG inventory during the reporting period” has been
revised to “Response rate of key suppliers to the green supply chain survey”.
8. The calculation is based on serious dishonest conduct statistics disclosed on the “Credit China” website.
Category Indicators Unit 2024 2023 2022
Total investment in rural revitalization and poverty alleviation RMB 12200.00 / /
Rural
Revitalization Number of people benefited from rural revitalization and poverty
alleviation initiatives1 / / / /
Total amount invested into community public welfare RMB 2789000.00 696599.27 1460111.51
Amount invested in community public welfare (education
assistance) RMB 769000.00 292000.00 687231.91
Amount invested in community public welfare (environmental
protection) RMB 0 0 0
Amount invested in community public welfare (labor needs) RMB 0 0 0
Amount invested in community public welfare (medical health) RMB 0 0 587378.61
Social
Contributions Amount invested in community public welfare (culture and sports) RMB 20000.00 0 0
Amount invested in community public welfare (other areas) RMB 2000000.00 404599.27 185500.99
Use of charity funds RMB 423862.82 145585.70 /
Amount donated to charity projects2 RMB 100000.00 492000.00 667231.91
Total hours of employee volunteer service Hour 960 5600 36460
Total instances of employee volunteer participation3 Person-time 130 / /
Notes:
1. Due to the inability to accurately count specific beneficiaries this data is not disclosed.
2. It refers to donation projects for which official donation receipts (printed and supervised by financial authorities) have been issued.
3. Since the indicator “Number of employee volunteer participants” was changed to “Total instances of employee volunteer participation” the historical data
are not restated due to traceability limitations.
099Report Appendix / 2024 SUSTAINABILITY REPORT
Governance Performance
Category Indicators Unit 2024 2023 2022
Number of Board of Directors members / 9 9 9
Number of independent directors / 3 3 3
Number of male Board of Directors members / 8 8 8
Number of female Board of Directors members / 1 1 1
Proportion of female Board of Directors members % 11 11 11
Number of board meetings held Time 8 7 11
Average number of directors attending the meetings of the Board of Directors / 9 9 9
Meetings of the Board of Directors attendance rate % 100 100 100
Minimum attendance rate of board members at meetings of the Board of
%100100100
Directors
Number of non-executive/independent directors with four or fewer other
/333
mandates
Average tenure of Board of Directors members Year 8.65 7.98 6.98
Number of independent directors with industry experience / 3 3 3
Number of independent directors on the Board of Directors % 33.33 33.33 33.33
Proportion of independent directors on the Audit Committee % 100 66.67 66.67
Proportion of independent directors on the Compensation and Assessment
%66.6766.6766.67
Corporate Committee
Governance
Proportion of independent directors on the Compensation and Assessment
%66.6766.6766.67
Committee
Proportion of Board of Directors members who are immediate family members of
%000
major shareholders executives or former executives
Standard deviation of director ages / 4.03 6.08 6.08
Standard deviation of director tenures / 6.11 5.73 5.73
Number of financial experts on the Audit Committee / 1 1 1
Multiple of base salary of CEO (President)1 / 669.54 965.69 1060.94
Average multiple of base salary of other executives with shareholding reported2 / 554.63 713.75 903.67
Ratio of total compensation of CEO (President) to average employee salary / 16.86 16.44 17.09
Proportion of government ownership % 0 0 0
Number of Audit Committee meetings held Time 6 5 83
Number of Compensation and Assessment Committee meetings held Time 4 / /
Number of Nomination Committee meetings held Time 1 / /
Number of General Meetings of Shareholders held Time 2 1 2
Number of Meetings of the Board of Supervisors held Time 7 6 8
Meetings of the Board of Supervisors attendance rate % 100 100 100
100Notes:
1. Multiple of base salary of CEO (President) = reporting year-end stock price (unadjusted)× number of shares held by CEO (President) as of the reporting year
÷ salary before tax of CEO (President) received during the reporting year.
2. Multiple of base salary of other executives = [(reporting year-end stock price × number of shares held by Executive 1 ÷ the executive’s salary before tax
received during the reporting year) + (reporting year-end stock price × number of shares held by Executive 2 ÷ the executive’s salary before tax received
during the reporting year) + (…)] ÷ number of executives with shareholding reported.
3. After verification the data in the company’s 2022 ESG report showing zero was an entry error in the system; the actual value was eight. The company
hereby corrects it and apologizes to all stakeholders.Category Indicators Unit 2024 2023 2022
Number of employees who received anti-corruption training1 / 10585 / /
Coverage rate of anti-corruption training among employees2 % 71.91 / /
Total number of hours of anti-corruption training received by employees Hour 1220.17 / /
Anti- Number of corruption leads generated through whistleblowing channels / 18 7 /
commercial
Bribery and
Anti-corruption Total number of violations of anti-corruption laws and regulations / 0 2 0
Number of operating sites where anti-corruption audits have been conducted / 53 47 47
Number of employees dismissed or disciplined due to corruption / 0 2 /
Number of resolved corruption lawsuits involving the company or its employees / 0 0 0
Number of major incidents violated laws and regulations Time 0 0 0
Number of fines imposed for violations Time 0 0 0
Total amount of fines imposed due to violations RMB 0 0 0
Compliance
management
Major tax violation incidents / 0 0 0
Violations related to conflict of interest / 0 0 0
Money laundering or insider trading incidents / 0 0 0
Number of lawsuits or major administrative penalties due to company
misconduct / 0 0 0
Fair Monetary value involved in lawsuits or major administrative penalties due to
Competition RMB 0 0 0company misconduct
Number of legal proceedings related to anti-competitive behavior antitrust and
/000
anti-monopoly laws
Notes:
1. Due to changes in the statistical scope for “anti-corruption training participation” to avoid misleading readers the previous year’s data is marked with a “/”.
2. Frontline production employees are excluded from the calculation as they are not exposed to corruption risks.
101Report Appendix / 2024 SUSTAINABILITY REPORT
Appendix 2: Index Table
Index of Guidelines of Shenzhen Stock Exchange for Self-discipline Regulation of Listed
Companies No.17 - Sustainability Report (Trial)
A. Chapter Index Table
Chapters Disclosure Content Disclosure Chapter
Chapter I General Provisions About This Report
Chapter II Disclosure Framework for Sustainability Information Chapters Related to Each Material Topic
Chapter III Environmental Information Disclosure
Chapter III Section 1 Addressing Climate Change 3.1 Addressing Climate Change
Chapter III Section 2 Pollution Control and Ecosystem Protection 3.5 Ecosystem Protection
3.2 Strengthening Energy Management
Chapter III Section 3 Resource Utilization and Circular Economy 3.3 Innovative Green Products
3.5 Ecosystem Protection
Chapter IV Social Information Disclosure
Chapter IV Section 1 Rural Revitalization and Social Contributions 7.3 Contributing to Social Development
Innovation-Driven Development and Ethics of Science
Chapter IV Section 2 5.1 R&D Innovation Focus
and Technology
4.1 Strict Product Quality Control
4.2 Improving Customer Services
Chapter IV Section 3 Suppliers and Customers
5.2 Data Privacy Protection
7.1 Building a Sustainable Supply Chain
6.1 Employee Rights and Welfare Protection
6.2 Talent Attraction and Retention
Chapter IV Section 4 Employees
6.3 Employee Training and Development
6.4 Occupational Health and Safety
Chapter V Disclosure of Sustainability-Related Governance Information
Chapter V Section 1 Sustainability-Related Governance Mechanisms 2.2 Strengthening Corporate Governance
Chapter V Section 2 Business Practices 2.3 Compliant and Robust Operation
Chapter VI Supplementary Provisions and Interpretation /
102B. Index of Guidelines Topics
Dimension No. Guidance Topics Clause Disclosure Location
1 Addressing Climate Change Articles 21-28 3.1 Addressing Climate Change
2 Pollutant Discharge Article 30 3.5 Ecosystem Protection
3 Waste Treatment Article 31 3.5 Ecosystem Protection
4 Ecosystem and Biodiversity Protection Article 32 3.5 Ecosystem Protection
Environment
5 Environmental Compliance Management Article 33 3.5 Ecosystem Protection
6 Energy Use Article 35 3.2 Strengthening Energy Management
7 Water Resources Utilization Article 36 3.5 Ecosystem Protection
8 Circular Economy Article 37 3.3 Innovative Green Products
9 Rural Revitalization Article 39 7.3 Contributing to Social Development
10 Social Contributions Article 40 7.3 Contributing to Social Development
11 Innovation-Driven Development Article 42 5.1 R&D Innovation Focus
12 Ethics of Science and Technology Article 43 Not applicable
13 Supply Chain Security Article 45 7.1 Building a Sustainable Supply Chain
Society
14 Equal treatment of SMEs Article 46 7.1 Building a Sustainable Supply Chain
15 Product and Service Safety and Quality Article 47 4.1 Strict Product Quality Control4.2 Improving Customer Services
16 Data Security and Customer Privacy Article 48 5.2 Data Privacy Protection
6.1 Employee Rights and Welfare Protection
17 Employees Article 50 6.2 Talent Attraction and Retention6.3 Employee Training and Development
6.4 Occupational Health and Safety
18 Due Diligence Article 52 2.3 Compliant and Robust Operation
Sustainability- 19 Stakeholder Engagement Article 53 2.1 Sustainability Management
related
Governance 20 Anti-commercial Bribery and Anti-corruption Article 55 2.3 Compliant and Robust Operation
21 Fair Competition Article 56 2.3 Compliant and Robust Operation
22 Opportunities in Clean Technology / 3.1 Addressing Climate Change3.3 Innovative Green Products
23 Green Products and Innovation / 3.3 Innovative Green Products
Company
Self-Disclosures 24 Corporate Governance / 2.2 Strengthening Corporate Governance
25 Risk Management / 2.3 Compliant and Robust Operation
26 Cross-industry Collaboration and / 7.2 Promoting Industrial Cooperation and Development Development
103Report Appendix / 2024 SUSTAINABILITY REPORT
GRI Index Table
Statement of use Shenzhen INOVANCE Technology Co. Ltd. discloses the referenced information in this index table in accordance with the GRI Standards for the period from January 1 2024 to December 31 2024.GRI 1 used GRI 1: Foundation 2021
GRI Standard Disclosure Location
Part 1: General Disclosures
2-1 Organizational details 1.1 Company Profile
2-2 Entities included in the organization’s sustainability reporting About This Report
2-3 Reporting period frequency and contact point About This Report
2-4 Restatements of information About This Report
2-5 External assurance Appendix 8
2-6 Activities value chain and other business relationships 1.3 Core Business
2-7 Employees 6.1 Employee Rights and Welfare Protection
Appendix 1: Key Performance Table Social
2-8 Workers who are not employees
Performance
2-9 Governance structure and composition 2.2 Strengthening Corporate Governance
2-10 Nomination and selection of the highest governance body 2.2 Strengthening Corporate Governance
2-11 Chair of the highest governance body 2.2 Strengthening Corporate Governance
GRI 2: 2-12 Role of the highest governance body in overseeing the management of impacts 2.2 Strengthening Corporate Governance
General
2-13 Delegation of responsibility for managing impacts 2.2 Strengthening Corporate Governance
Disclosures 2021
2-14 Role of the highest governance body in sustainability reporting 2.1 Sustainability Management
2-15 Conflicts of interest 2.3 Compliant and Robust Operation
2-16 Communication of critical concerns 2.1 Sustainability Management
2-17 Collective knowledge of the highest governance body 2.1 Sustainability Management
2-19 Remuneration policies 2.1 Sustainability Management
2-22 Statement on sustainable development strategy 2.1 Sustainability Management
2-23 Policy commitments 6.1 Employee Rights and Welfare Protection
2-24 Embedding policy commitments 2.3 Compliant and Robust Operation
2-25 Processes to remediate negative impacts 2.3 Compliant and Robust Operation
2-26 Mechanisms for seeking advice and raising concerns 2.1 Sustainability Management
2-27 Compliance with laws and regulations Disclosure has been made in all chapters.
2-29 Approach to stakeholder engagement 2.1 Sustainability Management
Part 2: Material Topics
GRI 3: 3-1 Process to determine material topics 2.1 Sustainability Management
Material Topics 3-2 List of material topics 2.1 Sustainability Management
2021 3-3 Management of material topics 2.1 Sustainability Management
Economic Performance
Appendix 1: Key Performance Table
201-1 Direct economic value generated and distributed
GRI 201: Economic Performance
Economic 201-2 Financial implications and other risks and opportunities due to climate change 3.1 Addressing Climate Change
Performance 201-3 Defined benefit plan obligations and other retirement plans 6.1 Employee Rights and Welfare Protection
2016 Appendix 1: Key Performance Table
201-4 Financial assistance received from government
Economic Performance
Anti-corruption
Appendix 1: Key Performance Table
GRI 205: 205-1 Operations assessed for risks related to corruption Governance Performance
Anticorruption
2.3 Compliant and Robust Operation
2016 205-2 Communication and training about anti-corruption policies and procedures
7.1 Building a Sustainable Supply Chain
Anti-competitive behavior
GRI 206:
206-1 Legal actions for anti-competitive behavior anti-trust and monopoly
Anti-competitive 2.3 Compliant and Robust Operation
practices
Behavior 2016
104GRI Standard Disclosure Location
Materials
GRI 301: 301-2 Recycled input materials used 3.3 Green Innovative Products
Materials 2016 301-3 Reclaimed products and their packaging materials 3.3 Green Innovative Products
Energy
3.2 Strengthening Energy Management
302-1 Energy consumption within the organization Appendix 1: Key Performance Table
Environmental Performance
GRI 302: 3.2 Strengthening Energy Management
Energy 2016 302-3 Energy intensity Appendix 1: Key Performance Table
Environmental Performance
302-4 Reduction of energy consumption 3.2 Strengthening Energy Management
302-5 Reductions in energy requirements of products and services 3.3 Innovative Green Products
Water and Effluents
303-2 Management of water discharge-related impacts 3.5 Ecosystem Protection
Appendix 1: Key Performance Table
303-3 Water withdrawal
GRI 303: Environmental Performance
Water and Appendix 1: Key Performance Table
Effluents 2018 303-4 Water discharge Environmental Performance
Appendix 1: Key Performance Table
303-5 Water consumption
Environmental Performance
Biodiversity
GRI 304:
304-2 Significant impacts of activities products and services on biodiversity 3.5 Ecosystem Protection
Biodiversity 2016
Emissions
3.1 Addressing Climate Change
305-1 Direct (Scope 1) GHG emissions Appendix 1: Key Performance Table
Environmental Performance
3.1 Addressing Climate Change
305-2 Energy indirect (Scope 2) GHG emissions Appendix 1: Key Performance Table
Environmental Performance
3.1 Addressing Climate Change
GRI 305: 305-3 Other indirect (Scope 3) GHG emissions Appendix 1: Key Performance Table
Emissions 2016 Environmental Performance
3.1 Addressing Climate Change
305-4 GHG emission intensity Appendix 1: Key Performance Table
Environmental Performance
3.1 Addressing Climate Change
305-5 Reduction of GHG emissions Appendix 1: Key Performance Table
Environmental Performance
305-7 Nitrogen oxides (NOx) sulfur oxides (SOx) and other significant air emissions 3.5 Ecosystem Protection
Waste
306-1 Waste generation and significant waste-related impacts 3.5 Ecosystem Protection
306-2 Management of significant waste-related impacts 3.5 Ecosystem Protection
3.5 Ecosystem Protection
GRI 306: 306-3 Waste generated Appendix 1: Key Performance Table
Waste 2020 Environmental Performance
3.5 Ecosystem Protection
306-5 Waste directed to disposal Appendix 1: Key Performance Table
Environmental Performance
Supplier Environmental Assessment
GRI 308: Supplier
Environmental 308-1 New suppliers that were screened using environmental criteria 7.1 Building a Sustainable Supply Chain
Assessment 2016
Employment
GRI 401: 401-2 Benefits provided to full-time employees that are not provided to 6.1 Employee Rights and Welfare Protection
Employment temporary or part-time employees
2016 401-3 Parental leave 6.1 Employee Rights and Welfare
105Report Appendix / 2024 SUSTAINABILITY REPORT
GRI Standard Disclosure Location
Occupational Health and Safety
403-1 Occupational health and safety management system 6.4 Occupational Health and Safety
403-2 Hazard identification risk assessment and incident investigation 6.4 Occupational Health and Safety
403-3 Occupational health services 6.4 Occupational Health and Safety
GRI 403: 403-5 Worker training on occupational health and safety 6.4 Occupational Health and Safety
Occupational 403-6 Promotion of worker health 6.4 Occupational Health and Safety
Health and Safety
2018 403-7 Prevention and mitigation of occupational health and safety impacts di-
rectly linked by business relationships 6.4 Occupational Health and Safety
403-8 Workers covered by an occupational health and safety management system 6.4 Occupational Health and Safety
403-9 Work-related injuries 6.4 Occupational Health and Safety
403-10 Work-related ill health 6.4 Occupational Health and Safety
Training and Education
404-1 Average hours of training per year per employee 6.3 Employee Training and Development
GRI 404:
Training and 404-2 Programs for upgrading employee skills and transition assistance programs 6.3 Employee Training and Development
Education 2016 404-3 Percentage of employees receiving regular performance and career
development reviews 6.2 Talent Attraction and Retention
Diversity and Equal Opportunity
GRI 405: 6.1 Employee Rights and Welfare Protection
Diversity and
Equal Opportuni- 405-1 Diversity of governance bodies and employees Appendix 1: Key Performance Table
ty 2016 Social Performance
Non-discrimination
GRI 406:
Non-discrimina- 406-1 Incidents of discrimination and corrective actions taken 6.1 Employee Rights and Welfare Protection
tion 2016 7.1 Building a Sustainable Supply Chain
Child Labor
GRI 408: Child 408-1 Operations and suppliers at significant risk for incidents of child labor 6.1 Employee Rights and Welfare ProtectionLabor 2016 7.1 Building a Sustainable Supply Chain
Freedom of Association and Collective Bargaining
GRI 407: Freedom
of Association 407-1 Operations and suppliers in which the right to freedom of association and 6.1 Employee Rights and Welfare Protection
and Collective collective bargaining may be at risk 7.1 Building a Sustainable Supply Chain
Bargaining 2016
Forced or Compulsory Labor
GRI 409: Forced
or Compulsory 409-1 Operations and suppliers at significant risk for incidents of forced or com- 6.1 Employee Rights and Welfare Protection
Labor 2016 pulsory labor 7.1 Building a Sustainable Supply Chain
Local Communities
GRI 413: Local
Communities 413-1 Operations with local community engagement impact assessments and
2016 development programs
7.3 Contributing to Social Development
Supplier Social Assessment
GRI 414: Supplier 414-1 New suppliers that were screened using social criteria 7.1 Building a Sustainable Supply Chain
Social Assess-
ment 2016 414-2 Negative social impacts in the supply chain and actions taken 7.1 Building a Sustainable Supply Chain
Customer Health and Safety
GRI 416:
Customer Health 416-2 Incidents of non-compliance concerning the health and safety impacts of products and services 4.1 Strict Product Quality Controland Safety 2016
Marketing and Labeling
417-1 Requirements for product and service information and labeling 2.3 Compliant and Robust Operation
GRI 417: Market-
ing and Labeling 417-2 Incidents of non-compliance concerning product and service information and labeling 2.3 Compliant and Robust Operation2016
417-3 Incidents of non-compliance concerning marketing communications 2.3 Compliant and Robust Operation
Customer Privacy
GRI 418:
Customer Privacy 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data 5.2 Data Privacy Protection2016
106Mapping Table of United Nations Sustainable Development Goals (UN SDGs)
Chapters Sections UN SDGs Mapping
Chapter 2 Sustainable Development and 2.1 Sustainability Management Goal 16 Peace Justice and Strong Institutions
Corporate Governance 2.2 Strengthening Corporate Governance Goal 17 Partnerships for the Goals
2.3 Compliant and Robust Operation
Chapter 3 Empowering Decarbonization 3.1 Addressing Climate Change Goal 6 Clean Water and Sanitation
3.2 Strengthening Energy Management Goal 7 Affordable and Clean Energy
3.3 Innovative Green Products Goal 9 Industry Innovation and Infrastructure
3.4 Jointly Building a Net-zero Future Goal 11 Sustainable Cities and Communities
3.5 Ecosystem Protection Goal 12 Responsible Consumption and Production
Goal 13 Climate Action
Goal 15 Life on Land
Chapter 4 Focus on Customer Satisfaction 4.1 Strict Product Quality Control Goal 12 Responsible Consumption and Production
4.2 Improving Customer Services
5 Innovation-Drives Development 5.1 R&D Innovation Focus Goal 9 Industry Innovation and Infrastructure
5.2 Data Privacy Protection
6 Employee Development Guarantee 6.1 Employee Rights and Welfare Protection Goal 3 Good Health and Well-being
6.2 Talent Attraction and Retention Goal 4 Quality Education
6.3 Employee Training and Development Goal 5 Gender Equality
6.4 Occupational Health and Safety Goal 8 Decent Work and Economic Growth
Goal 10 Reduced Inequalities
Chapter 7 Inclusive And Responsible 7.1 Building a Sustainable Supply Chain Goal 4 Quality Education
Ecosystem Building 7.2 Promoting Industrial Cooperation and Goal 10 Reduced Inequalities
Development Goal 12 Responsible Consumption and Production
7.3 Contributing to Social Development Goal 17 Partnerships for the Goals
107Report Appendix / 2024 SUSTAINABILITY REPORT
Appendix 3: Description of Operating Sites
To facilitate stakeholder review The Company has complied the correlation between the abbreviated designations and the full names of the Company’s
operational sites* as follows.No. Full Name of Operating Site Abbreviation of Operating Site Key Operational Site
1 Shenzhen INOVANCE Technology Co. Ltd. Shenzhen INOVANCE
2 Dongguan INOVANCE Technology Co. Ltd. Dongguan INOVANCE
3 Suzhou INOVANCE Technology Co. Ltd. Suzhou INOVANCE
4 Suzhou INOVANCE Control Technology Co. Ltd. Suzhou INOVANCE Control
5 Suzhou INOVANCE Automotive Co. Ltd. INOVANCE Automotive
6 Jiangsu Kingway Transportation Co. Ltd. Jiangsu Kingway
7 INOVANCE New Energy Vehicle Technology (Changzhou) Co. Ltd. Changzhou INOVANCE New Energy
8 Yueyang INOVANCE Technology Co. Ltd. Yueyang INOVANCE
9 SHANGHAI BST ELECTRONIC CO. LTD. BST
10 SHANGHAI BNK CABLE CO. LTD. BNK CABLE
11 BST Machinery & Electronics (Jiaxing) Co. Ltd. BST Machinery & Electronics (Jiaxing)
12 Nanjing INOVANCE Technology Co. Ltd. Nanjing INOVANCE
13 Xi’an INOVANCE Technology Co. Ltd. Xi’an INOVANCE
14 Dalian Zhiding Technology Co. Ltd. Dalian Zhiding
15 Guangdong MJB Electric Co. Ltd. MJB
16 Tianjin BST Electric Co. Ltd. Tianjin BST Electric
17 hangchun Weton Optoelectronic Technology Co. Ltd. Changchun Weton
18 Ningbo EST Technology Co. Ltd. EST
19 EKSYS (Beijing) Technology Co. Ltd. EKSYS (Beijing)
20 Jinan INOVANCE Technology Co. Ltd. Jinan INOVANCE
21 Inova Automation Co. Ltd. INOVA AUTOMATION
22 INOVANCE AUTOMOTIVE (THAILAND) CO. LTD. INOVANCE AUTOMOTIVE THAILAND
23 INOVANCE TECHNOLOGY HUNGARY KORLáTOLT FELEL?SSéG? TáRSASáG INOVANCE TECHNOLOGY HUNGARY
24 INOVANCE AUTOMOTIVE HUNGARY KORLáTOLT FELEL?SSéG? TáRSASáG INOVANCE AUTOMOTIVE HUNGARY
25 SBC LINEAR CO. LTD. SBC
26 INOVANCE TECHNOLOGY KOREA CO. LTD. INOVANCE TECHNOLOGY KOREA
27 INOVA AUTOMATION ITALY S.R.L. INOVA AUTOMATION ITALY
28 INOVANCE TECHNOLOGY PRIVATE LIMITED INOVANCE TECHNOLOGY INDIA
29 INOVANCE TECHNOLOGY EUROPE GMBH INOVANCE TECHNOLOGY EUROPE
30 INOVANCE TECHNOLOGY FRANCE INOVANCE TECHNOLOGY FRANCE
31 INNOVATION RECHERCHE AUTOMATISME INFORMATIQUE IRAI
32 INOVANCE TECHNOLOGY ENDüSTR?YEL OTOMASYON L?M?TED ??RKET? INOVANCE TECHNOLOGY TüRKIYE
33 INOVANCE TECHNOLOGY ESPA?A SL INOVANCE TECHNOLOGY SPAIN
34 INOVANCE TECHNOLOGY USA INC. INOVANCE TECHNOLOGY USA
Note: Key operating sites refer to those that have a material and substantive impact on the Company’s business operations including all manufacturing centers and
the non-manufacturing centers with the largest number of employees. The combined number of full-time labor contract employees at the designated key operating
sites must account for at least 90% of the total number of such employees at the end of the reporting period. For subsidiaries operating at the same address and
sharing the same management system they are consolidated as a single operating site. The total number of key operating sites in 2024 was 19.
108Appendix 4: Glossary
Abbreviation Full Name
8D Eight Disciplines
AI Artificial Intelligence
APQP Advanced Product Quality Planning
ARD Automatic Rescue Device
ASIL Automotive Safety Integrity Level
ATEX Atmosphères Explosibles
BCM Business Continuity Management
CCC China Compulsory Certification
CCER China Certified Emission Reduction
CFSI Conflict-Free Sourcing Initiative
CNC Computerized Numerical Control
COE Center of Expertise
CQC China Quality Certification Centre
CQM Customer Quality Management
CSA Corporate Sustainability Assessment
CT Compliance Test
DC/DC Direct Current to Direct Current Converter
DDoS Distributed Denial of Service
DSTE Design Strategy to Execution
EAP Employee Assistance Programs
EHS Environment Health and Safety
EMC Energy Management Contract
EMT Executive Management Team
EPC Engineering Procurement Construction
ESG Environmental Social and Governance
GDPR General Data Protection Regulation (REGULATION (EU) 2016/679)
GHG Greenhouse Gas
GRI Global Reporting Initiative
IEC International Electro Technical Commission
IFRS S1 International Financial Reporting Standards Sustainability Disclosure Standard 1
IoT Internet of Things
IPD Integrated Product Development
109Report Appendix / 2024 SUSTAINABILITY REPORT
Abbreviation Full Name
IQC Incoming Quality Control
ISC Integrated Supply Chain
ISO International Organization for Standardization
ISS Institutional Shareholder Services
ISSB International Sustainability Standards Board
ITR Issue to Resolve
KCP Key Control Point
MES Manufacturing Execution System
MSCI Morgan Stanley Capital International
NPI New Product Introduction
OBC On-board Charger
ORT Ongoing Reliability Test
PC Process Control
PCN Product Change Notification
PDCA Plan Do Check and Act
PLC Programmable Logic Controller
PO Process Owner
PPAP Production Part Approval Process
PPE Personal Protective Equipment
QCC Quality Control Circle
QPA Quality Process Audit
REACH RegistrationEvaluationAuthorisation and Restriction of Chemicals
RoHS Restriction of Hazardous Substances
RPO Recovery Point Objective
RT Recommendation Tracking
RTO Recovery Time Objective
SFM Shop Floor Management
SOD Segregation of Duties
SQE Supplier Quality Engineering
SSR Supplier Survey Report
S&P Standard & Poor’s
TQRDC Technology Quality Responsiveness Delivery & Cost
UL Underwriters Laboratories Inc.UN SDGs United Nations Sustainable Development Goals
UV Ultraviolet
VOCs Volatile Organic Compounds
110Appendix 5 Description of 2024 Material Topics
The table below presents the material topics for 2024 identified through topic assessment and analysis along with their definitions boundaries and locations of
relevant disclosures in the report. Here "boundary of material topics" refers to the segments within the value chain that may be significantly impacted by the
topic after preliminary identification. These are initially categorized as "supply chain" "production and operations" and "products and services".Topic Boundary
No. Dimension Topic Name Production Products
Chapter
Supply Topic Definition
and and Location
Chain
Operations Services
The Company takes measures to mitigate the negative impacts of
climate change and adapt to its potential challenges. These include
3.1
Addressing reducing direct and indirect GHG emissions from production and
Addressing
1 E Climate operations reducing emissions across the value chain assessing
Climate
Change and managing risks posed by climate change (such as extreme
Change
weather events and supply chain disruptions) and enhancing climate
resilience.Through full lifecycle management of products the Company adoptsthe philosophy of “material conservation simplified processes minimal 3.3Green Products packaging and modular functions” to reduce resource consumption Innovative
2 E
and Innovation during raw material procurement and production improve product Green
energy efficiency and lower energy use during product usage thereby Products
reducing GHG emissions throughout the product lifecycle.The Company gains comprehensive insights into market opportunities
3.4
arising from the green and low-carbon transition in key sectors
Opportunities Jointly
such as energy industry construction and transportation. Through
3 E in Clean Building a
innovation and R&D of new products and product portfolios the
Technology Net-zero
Company provides clean technology-related products and solutions
Future
to respond to these opportunities.Based on industry characteristics and operational realities the
Company builds an energy management system. By conducting
3.2
energy usage assessments setting energy-saving and renewable
Strengthening
4 E Energy Use energy utilization targets and implementing energy-saving
Energy
upgrades and renewable energy adoption plans the Company aims
Management
to use energy resources efficiently and continuously reduce the
environmental impact of our business activities.In accordance with laws regulations and our business nature the
Company engages in activities such as reduction reuse and recycling
3.5
Circular during production and distribution. These include establishing a
5 E Ecosystem
Economy circular economy management system formulating circular economy
Protection
policies and plans implementing circular economy measures and
evaluating progress and outcomes.Talent Attraction and Retention: The Company strives to attract and
6.1
retain talent by offering a comfortable work environment fair and
Employee
transparent recruitment processes competitive compensation and
Rights and
benefits clear development pathways and promotion opportunities
Welfare
and specialized incentive policies.Protection
Employee Rights and Well-being: The Company strictly complies with
laws regulations and international conventions to respect and protect
6.2
employees’ lawful rights and interests fosters a diverse inclusive and
Talent
equitable work environment and establishes various welfare measures
Attraction and
to improve employees’ and their families’ quality of life.Retention
6 S Employees Employee Training and Development: The Company provides
platforms for vocational training and capacity building develops
6.3
training systems for skills enhancement and career development
Employee
supports employees’ all-round growth from the perspectives of job
Training and
roles market needs and future trends and regularly offers career
Development
development guidance and training performance assessments.Occupational Health and Safety: The Company establishes an
6.4
occupational health and safety management system to ensure safe
Occupational
production and employee health. This includes the identification and
Health and
control of hazards or risks safety production assessments safety
Safety
training and occupational health management.
111Report Appendix / 2024 SUSTAINABILITY REPORT
Topic Boundary
Chapter
No. Dimension Topic Name Production Products Topic Definition
Supply Location
and and
Chain
Operations Services
This section covers the Company’s management system
5.1
Innovation- development and milestone achievements in R&D including
R&D
7 S Driven innovation management systems R&D investment key technology
Innovation
Development R&D plans R&D platform development intellectual property
Focus
protection innovation incentives and innovation culture.The Company manages supply chain risks to ensure supply
chain security and stability. This includes building supply chain
management systems such as supplier entry standards covering 7.1
Sustainable
sustainability issues supplier classification and grading supplier Building a
8 S Supply Chain
risk assessment and performance assessment supplier GHG Sustainable
Management
emission reduction plans and actions responsible procurement Supply Chain
practices and cooperation with suppliers to advance sustainable
supply chains.
4.1
The Company ensures that its products and services comply with
Strict Product
applicable laws and regulations industry standards and customer
Quality
Product and requirements in terms of product safety and quality and meet the
Control
9 S Service Safety standards and requirements for personal and property safety. This
and Quality includes relevant goals management systems capacity building
4.2 Improving
and cultural development related to product safety and quality
Customer
management.Services
Based on industry attributes and the nature of its operations
the Company identifies key operational processes involving
data security and privacy protection establishes a data security
and privacy protection management framework formulates
Data Security 5.2
relevant management systems improves infrastructure develops
10 S and Privacy Data Privacy
emergency response plans for data breaches or security incidents
Protection Protection
implements data system security protection regularly reviews and
evaluates the data and privacy-related management systems
and conducts specialized training on data security and privacy
protection.The Company promotes standardized operations and scientific
2.2
standardized and transparent corporate governance by
Corporate Strengthening
11 G establishing an effective governance structure comprising the
Governance Corporate
General Meeting of Shareholders the Board of Directors the Board
Governance
of Supervisors and the management.The Company executes risk management processes across 2.3
Risk all aspects of its business operations establishes a sound risk Compliant
12 G
Management management system and manages risks and ensures compliance and Robust
related to economic environmental and social matters. Operation
During operations and management the Company adopts a series
of measures and procedures to prevent identify and address
commercial bribery and corruption in accordance with relevant
Anti-
laws regulations and international standards. These include 2.3
commercial
formulating and implementing anti-bribery and anti-corruption Compliant
13 G Bribery
systems assessing and managing risks related to bribery and and Robust
and Anti-
corruption setting control objectives carrying out internal control Operation
corruption
and compliance reviews conducting employee training and
awareness programs and establishing effective supervision and
whistleblowing mechanisms.
112Appendix 6 Biodiversity Impact Assessment
A. Species Impact Assessment Table
Species Impact Assessment
Basic Information Protected species under the
IUCN Threat Category RCB Threat Category Wildlife Protection Law of the
People’s Republic of China
No. Operational Sites Critically Critically Three Types of Endangered Endangered Vulnerable Endangered Endangered Vulnerable Class I Class II Protected Wildlife
1 Shenzhen INOVANCE 0 0 0 0 0 0 0 3 27
2 Suzhou INOVANCE 0 0 0 0 0 0 0 3 56
3 INOVANCE Automotive 0 0 1 0 0 0 0 16 94
4 Changzhou INOVANCE New Energy 0 0 0 0 0 0 0 0 0
5 BST 0 0 0 0 0 0 0 2 19
6 BNK CABLE 0 0 0 0 0 0 0 2 19
7 BST Electrical(Jiaxing) 0 0 0 0 0 0 0 0 0
8 Dalian Zhiding 0 0 0 0 0 0 0 0 0
9 MJB 0 0 0 0 0 0 0 0 5
10 Jiangsu Kingway Rail 0 0 0 0 0 0 0 0 0
11 Tianjin BST 0 0 0 0 0 0 0 0 0
12 EST 0 0 0 0 0 0 0 0 0
Total 0 0 1 0 0 0 0 26 220
Note: The species impact assessment refers to data from the Nature Watch Biodiversity Database the International Union for Conservation of Nature (IUCN)
Species Distribution Database the Key Biodiversity Areas (KBA) Database and the World Database on Protected Areas (WDPA).B. Impact Assessment Table of Protected Areas
Basic Information Protected Areas Impact Assessment
B. Impact Assessment Table of Protected Areas
No. Operational Sites National Parks Nature Reserves Natural Parks World Natural Internationally Heritage Sites Important Wetlands
1 Shenzhen INOVANCE 0 0 0 0 0
2 Suzhou INOVANCE 0 0 1 0 0
3 INOVANCE Automotive 0 0 2 0 0
4 Changzhou INOVANCE New Energy 0 0 0 0 0
5 BST 0 0 0 0 0
6 BNK CABLE 0 0 0 0 0
7 BST Machinery & Electronics (Jiaxing) 0 0 0 0 0
8 Dalian Zhiding 0 0 1 0 0
9 MJB 0 0 2 0 0
10 Jiangsu Kingway Rail 0 0 0 0 0
11 Tianjin BST 0 0 0 0 0
12 EST 0 0 0 0 0
Total 0 0 6 0 0
Note: The impact assessment of protected areas refers to the protection data from the Nature Watch Database Key Biodiversity Areas (KBA) Database and
World Database on Protected Areas (WDPA).
113Report Appendix / 2024 SUSTAINABILITY REPORT
Appendix 7 Compliance Management of
Key Environmental Supervision Entities
According to relevant regulations of the Ministry of Ecology and Environment the subsidiary Suzhou INOVANCE was listed as a key environmental
supervision entity (formerly known as a “key pollutant discharging entity”) in Suzhou in 2024. Suzhou INOVANCE manages pollutant emissions in
compliance with laws and regulations monitors the total volume and intensity of emissions regularly and meets pollutant emission standards. During the
reporting period there were no cases of emissions exceeding the prescribed limits at Suzhou INOVANCE.Pollutant Emissions of Suzhou INOVANCE in 2024
Types of Major Names of Major
Pollutants and Pollutants and Discharge Number of
Distribution
of Discharge Applicable Total Approved Exceedance
Characteristic Characteristic Method Discharge Concentration/ Emission Total of Emission
Pollutants Pollutants Outlets
Discharge Intensity Standards EmissionsOutlets Emissions Limits
Treated
Total non-
to meet Inside the 1.01 1.25
Exhaust gas methane 6 2.53mg/m3 60 mg/m3 None
discharge plant tons tons
hydrocarbons
standards
Treated
Tin and its to meet Inside the 6.12×10-4 3 0.0019 0.0022Exhaust gas 3 5mg/m None
compounds discharge plant mg/m3 tons tons
standards
Chemical
Domestic Discharge to Inside the 21.37 25.94
oxygen 2 253 mg/L 350 mg/L None
sewage pipeline plant tons tons
demand (COD)
Domestic Suspended Solid Discharge to Inside the 20.2 24.06
2 152 mg/L 220 mg/L None
sewage (SS) pipeline plant tons tons
Ammoniacal
Domestic Discharge to Inside the 1.56 1.91
Nitrogen 2 21 mg/L 30 mg/L None
sewage pipeline plant tons tons
(NH3-N)
Domestic Total Discharge to Inside the 0.23 0.287
2 3.8 mg/L 5 mg/L None
sewage phosphorus pipeline plant tons tons
Domestic Discharge to Inside the 3.85 4.432
Total nitrogen 2 36 mg/L 50 mg/L None
sewage pipeline plant tons tons
Domestic Animal and Discharge to Inside the 1.75 2.039
2 69 mg/L 100 mg/L None
sewage vegetable oils pipeline plant tons tons
Waste organic
solvents waste
packaging
containers waste
rags and gloves Disposed of
Hazardous surface treatment by qualified Not Not Not Not 465 Not
None
waste waste liquids third-party applicable applicable applicable applicable tons applicable
waste grinding companies
sludge waste
emulsion waste
activated carbon
etc.During the reporting year Suzhou INOVANCE had no instances of excessive pollutant discharge complied with relevant national regulations and was
not subject to environmental penalties by local authorities or complaints from community residents. No significant negative impacts were caused to
the surrounding environment.
114Appendix 8 Independent Third-party Assurance
115Report Appendix / 2024 SUSTAINABILITY REPORT
116117Acknowledgements
Chief Editor: Ali Han
Editorial Team: Chunmiao Zheng Jianfeng Hong
Colleag ues lis ted bel ow also contr ibuted to the Report:
Qinglin Cai Jianping Cao Chen Chen Cheng Chen Dong Chen Lixian Chen Xingyuan Chen
Ying Chen Longshan Ding Shuhan Dong Yan Dong Zhongju Fan Yucheng Fei Chang Gao
Zhijun Gu Anna Guo Hongjian Guo Jianhua Guo Yue Guo Yan Han Li Hang
Xinyi He Jiami Huang Peng Huang Wenyu Huang Ming Jia Lingyu Jiang Renjie Jiang
Wilai Kinthanon Fangbiao Lang Yandong Leng Dejun Li Enze Li Fujun Li Hui Li
Jianping Li Lanlan Li Man Li Shiyan Li Wenhong Li Xiaolong Li Huan Lin
Pei Lin Yuan Lin Feng Liu Gaoxiang Liu Huan Liu Longguo Liu Na Liu
Weitong Liu Wentai Liu Xiaoming Liu Xuran Liu Yang Liu Yu Liu Pan Long
Zhenwei Lu Hao Luo Lingxiao Luo Shuman Luo Yue Lü Xiaozhe Mo Yimin Nan
Chengpeng Ni Yanxia Ouyang Lei Pan Shanli Pan Yangju Peng Dongbo Piao Keyi Qi
Pan Qin Zhihong Qiu Yishi Shi Weilan Sun Zecheng Sun Wenqiang Tang Xiangqi Tang
Chenhu Wang Chenyu Wang Ping Wang Yunlin Wang Huafang Wu Weihong Wu Ze Wu
Wenyan Xie Zhijie Xie Jiali Xu Peng Xu Liming Xu Qiqi Xu Zhiyuan Xu
Huiying Yan Yi Yan Yunfeng Yan Li Yang Tingting Yang Yi Yang Ying Yao
Jiaqi Ye Qi Ye Gaoxiang Yi Xiaoqiong Yu Zhijie Yu Zhongjun Yuan Zengmei Yue
Hua Zeng Yan Zeng Guangwei Zhai Hongdeng Zhang Hua Zhang Hua Zhang (11850) Jianming Zhang
Jianming Zhang Jun Zhang Ningning Zhang Ping Zhang Yan Zhang Yanpeng Zhang Yang Zhang
Yinghui Zhang Yun Zhang Zhaoyu Zhang Zhenhai Zhang Zhengchang Zhang Chengjun Zhao Min Zhao
Wang Zhao Ming Zheng Long Zhi Bin Zhou Xijian Zhou Yun Zhou Aimin Zhu
Baojun Zhu Jinfeng Zhu Ruijie Zhuge Linhong Zhuang Wenhao Zong Deming Zou Tong Zou
118INOVANCE Headquarter 6 Lanqing 2nd Road Luhu
Community Guanhu Subdistrict Longhua District Shenzhen
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sustainability@inovance.com
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