S h e n z h e n A V - D i s p l a y C o . L t d . 2024 Environmental
Social and Governance (ESG) Report
Contact：Securities Affairs Department Tel：0755-86106838
Address：No. 39 Jinyuan Road He’ao Yuanshan Fax：0755-86106838
Subdistrict Longgang District Shenzhen
E-mail：qiutw@av-display.com Shenzhen AV-Display Co.Ltd.Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
CONTENTS
2 3Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
About This Report
Report Introduction Data Sources and Explanations
This report is the second Environmental Social and Governance (ESG) Report disclosed by Shenzhen The financial data in this report is extracted from the 2024 Annual Report of Shenzhen AV-Display Co.Ltd .AV-Display Co.Ltd (Stock Code: 300939; Stock Abbreviation: AVD). Adhering to the principles of objectiv- Other information and data are sourced from statistical summaries or public documents provided by the
ity standardization transparency and comprehensiveness the report details the actions and achieve- Company’s relevant departments. This report contains no false records misleading statements or materi-
ments in environment society and corporate governance by AVD and its wholly-owned subsidiaries and al omissions. Unless otherwise specified all monetary amounts in this report are expressed in RMB.holding subsidiaries (hereinafter referred to as “holding subsidiaries”) in 2024.Reporting Scope Definition and Explanations
Timeframe: The report covers the period from January 1 2024 to December 31 2024. To improve the For ease of expression and reading “Shenzhen AV-Display Co. Ltd” in this report may also be referred
comparability and completeness of the report some descriptions and data have been appropriately to as “AVD” “the Company” or “we” The above terms may also include wholly-owned subsidiaries and
traced back or extended. holding subsidiaries consolidated in the financial statements of Shenzhen AV-Display Co. Ltd. The fol-
Organizational Scope: Unless otherwise specified this report covers AVD and its holding subsidiaries (for lowing are some of the subsidiaries covered in this report along with their abbreviations:
details refer to the 2024 Shenzhen AV-Display Co. Ltd Report ).Term Interpretation
Ganzhou AVD Ganzhou AV-Display Co. Ltd
Release Cycle
Ruidisheng Shenzhen Ruidisheng Technology Co. Ltd.This Environmental Social and Governance (ESG) Report is published annually.Preparation Basis Report Publication Format and Access Channels
|No. 2 Guidelines of the Shenzhen Stock Exchange for the Self-discipline Regulation of Listed Companies This report is published in both Chinese and English. In Case of any discrepancy or conflict between the
on Growth Enterprise Market(GEM) Board two versions the Chinese version shall prevail. You can access and download the electronic version of the
|No. 3 Guidelines of the Shenzhen Stock Exchange for the Self-discipline Regulation of Listed Companies report on the official websites of the Shenzhen Stock Exchange (http://www.szse.cn/) CNINFO (http://
on Preparation of Sustainability Reports www.cninfo.com.cn/) and Shenzhen AV-Display Co. Ltd. (https://av-display.com.cn/).|No. 17 Guidelines of the Shenzhen Stock Exchange for the Self-discipline Regulation of Listed Companies
on Sustainable Development Report (Trial Implementation) For any comments or suggestions regarding the report please contact us through the following
|Sustainability Reporting Standards of the Global Reporting Initiative (GRI Standards) channels:
|Guidelines for Corporate Sustainable Development Reporting in China (CASS-ESG 6.0) of the China Enter- Address: No. 39 Jinyuan Road He’ao Yuanshan Subdistrict Longgang District Shenzhen
prise Reform and Development Research Association Tel: 0755-86106838
|Task Force on Climate-related Financial Disclosures (TCFD) Framework Fax: 0755-86106838
|Sustainable Development Goals (SDGs) of United Nations E-mail：qiutw@av-display.com
|Sustainability Accounting Standards Board (SASB) Standards
4 5Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Chairman’s Message
Dear stakeholders partners employees and friends from all walks of life who have been closely following AVD’s sus- verse and personalized customization needs thereby enhancing customer satisfaction. In supply chain management
tainable development journey: AVD rigorously ensures compliance with social responsibility and environmental standards across all stages driving
Looking back on 2024 we found that global economy growth lacked momentum amid a volatile international envi- sustainable development throughout the entire industrial chain. Internally we prioritize a “people-first” philosophy
ronment frequent geopolitical conflicts and rising trade protectionism—all of which brought significant uncertainty to fostering a safe healthy and inclusive workplace. We implement equitable compensation systems provide compre-
the world economy. Amidst this era of challenges and uncertainties AVD upheld its steadfast commitment to sustain- hensive training and career development opportunities and leverage diversified communication channels and pro-
able development. With unwavering determination the Company tackled difficulties head-on advanced all tasks in motion mechanisms to achieve mutual growth for employees and the enterprise. Moreover AVD actively participates
an orderly manner actively fulfilled its environmental and social duty bearer and steadily drove the Company toward in social welfare initiatives. Through donations consumption-driven poverty alleviation programs volunteer services
high-quality development. and other forms of support we sincerely give back to society advocate for vulnerable groups and fully demonstrate our commitment to corporate accountability and humanistic values.We deeply recognize that scientific and effective environmental management is a key driver for the Company
to achieve both economy benefits and enhanced competition as well as a core element for long-term develop- We firmly believe that sound corporate governance serves as the cornerstone of sustainable enterprise devel-
ment. In 2024 the Company will continue to expand its investments and initiatives in green production green R&D opment and directly reflects accountability to shareholders and all stakeholders. In 2024 the Company continued
and green office practices. We conduct thorough greenhouse gas emissions inventories to fully assess our emissions to optimize its corporate governance structure refine internal control systems and ensure full compliance and trans-
and establish a solid foundation for developing precise science-based emission reduction strategies. At the same parency in operations. During the year we introduced new regulations including the Environmental Social and Gov-
time we actively participate in the filling of CDP questionnaire and Ecovadis rating questionnaire proactively enhance ernance (ESG) Management Regulations Public Sentiment Management Guidelines External Donation Policies and
environmental information disclosure and are committed to building a communication bridge for green development Responsible Marketing Framework further embedding ESG principles deeply into all aspects of corporate governance
with all partners sharing the achievements of green development and contributing AVD’s strength to advancing the and business practices. Concurrently the Company prioritizes the protection of investor rights. We have established
industry’s green transformation. Faced with escalating global Climate Change risks and the severe situation of ex- regular communication channels to strengthen engagement with investors providing timely and accurate updates on
treme weather events—such as high temperatures droughts heavy rainfall and floods—frequently ravaging many strategic initiatives and operational achievements. This fosters greater understanding and support collectively driving
regions worldwide the Company actively responds to the United Nations Climate Action Initiative . We remain stead- steady growth in the Company’s long-term value. The share repurchase initiative implemented in 2024 underscores
fast in implementing the Company’s ESG strategies advancing climate change management efforts and strength- the Company’s unwavering confidence in future growth and its strong sense of responsibility toward shareholders
ening the identification and management of climate-related risks and opportunities. By continuously enhancing our while also sending a positive signal to the market.capacity to address climate change we contribute to safeguarding our planet. Looking ahead AVD will continue to deepen its commitment to ESG principles actively exploring and pioneering new
We fully recognize that enterprises and society form a closely interconnected community of shared destiny. pathways for ESG-driven growth. In this era where sustainability has evolved from an aspirational ideal into a sharedOnly through shared prosperity can we achieve stable and enduring progress. Guided by the mission to“ Presenting global imperative and a blueprint for collective action we stand at the forefront of this transformative tide. Let usthe World Restoring the Truth Connecting Things and Creating Value” AVD collaborates with partners to actively en- unite in vision pool our strengths seize opportunities within challenges and pursue progress through innovation. To-
gage in community development. Through innovative technologies and premium products we contribute to national gether we will stride toward a future defined by sustainability health and shared prosperity!
growth advance global industrial innovation and collectively build a better future. The Company steadfastly upholds
the principles of lawful and ethical operations while continuously elevating product quality and service standards. We
intensify R&D in green and low-carbon technologies delivering efficient high-performance solutions tailored to di- Chairman of AVD Huang Zhiyi
6 7Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Glance at AVD
Company Profile
Shenzhen AV-Display Co. Ltd. was established in 2004
and was listed on the Growth Enterprise Market of the
Shenzhen Stock Exchange on January 28 2021 (Stock
Abbreviation: “AVD” Stock Code: “300939”). As a na-
tional high-tech enterprise it specializes in the R&D
design production and sales of LCD and touch prod-ucts. Upholding the corporate mission of “presentingthe world restoring the truth connecting things andcreating value” the Company provides customers
with customized touch display integrated solutions
and is committed to becoming a leading one-stop
service provider for human-machine interface and in-
telligent control products. The Company headquarters
is located in Shenzhen Guangdong with production
bases in Shenzhen and Ganzhou (a production base
in Thailand is planned) and has established market-
ing networks in South China East China North China
West China Taiwan (China) Europe North America
and the Asia-Pacific region. The Company’s products
are exported to North America (the United States
and Canada) Europe (Germany the United Kingdom
France Belgium Switzerland the Netherlands Tur-
key etc.) Asia (Japan South Korea etc.) and Taiwan
China enjoying a strong reputation in the market.Ganzhou Factory Shenzhen Headquarters and Factory Shenzhen Industrial Base (Under Construction)
8 9Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Glance at AVD
Development Strategy Corporate Culture
AVD will continue to follow policy guidance stay attuned to market demand and leverage its
continuously enhanced R&D system and deep technology expertise to actively drive technology
upgrades and structural improvements for existing products. Aligning with industry trends and
market needs the Company will introduce new products and technologies while continuously
optimizing its product portfolio and expanding application areas to deliver strong returns for
investors.To be the leader of Presenting the world
the human-computer restoring the truth
interface industry connecting things and
Vision Mission creating value
Launch new products Introduce new technologies Improve the product Expand the application
structure fields of the products
Corporate
Culture
Core Enterprise
Values Spirit
Code of
Treating people Conduct Integrity
with empathy and Enterprisingness
handling matters with Teamwork Innovation
precision
Adhering to laws and regulations
working diligently and responsibly;
embracing teamwork treating others
with sincerity; learning to innovate
and striving for excellence
10 11Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Glance at AVD
Honors
19th China Listed Com-
panies Board of Direc-
2024 Shanghai tors “Golden Roundta-
2024 ESG Value Securities News ble Award” – Special
Outstanding Partners 2024 Outstanding Suppliers Communication Golden Quality Contribution Award for
Award for Company ESG Award Corporate Governance
Awarding Authority Awarding Authority Awarding Awarding Awarding Authority Authority Authority
Hexing Electrical Co. Ltd. Jiangsu Linyang Energy Co. Ltd. Shenzhen Valueonline Information Shanghai Securities News Board of Directors Magazinew
Technology Co. Ltd.ESG Ratings
In 2024 the Company’s continuous improvements in environmental protection social responsibility and corporate
governance (ESG) were recognized by multiple rating agencies and it achieved favorable evaluations in various ESG
rating systems. According to public data as of April 2025 the Company received an “A” rating from Huazheng ESG
Rating an “A” rating from China Reform Holdings ESG Rating an “A-” rating from SynTao Green Finance ESG Rating
and a “BBB” rating (ranked 47th out of 521) from Wind ESG Rating.Outstanding Contribution Award for
Pilot Program Excellence in Quality Award
Awarding Authority Awarding Authority Huazheng ESG China Reform SynTao Green Wind ESG Ratings
Guangdong Core Software LONGi Meter Co. Ltd. Ratings Holdings ESG Rating Finance ESG Ratings
Engineering Research and
Development Committee
12 13Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Glance at AVD
Milestones
L 2017 2021COG Production Line Set up in Ganzhou IPO in the GEM Board of Shenzhen Stock Exchange20162004 20231st LCD Line Put into Operation in Ganzhou 2018 The construction of AVD EstablishedCD industrial bases in
Set up 2nd LCD Panel Shenzhen of AVD
Production Line in
Ganzhou
20092024
Capacitive Touch Panel EPD Product Line
Facility Built up 2019 Set up
IoT Product Line Installed
2015
New Investment
in Full Lamination
Production Line EPD
201320142020
Ground Breaking New Investment in Set up 3rd LCD Panel Production
Ceremony Held for TFP Production Line in Ganzhou
the New Factory in
Ganzhou TFT
1415
loT
TPwContents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Performance in 2024
16 17Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
ESG Management
ESG Goals and Vision Focus Areas Corresponds to the Following Title AVD 2024 Initiatives SDGs
The Company continues to enhance
AVD actively implements the new development philosophy of innovation coordination green development openness i ts innovation and R&D capabil it ies
and sharing. It integrates this philosophy into all aspects and processes of business operations contributing to society establishing a comprehensive talent
while promoting environmentally friendly practices and supporting the achievement of the United Nations Sustainable support mechanism and technological
Development Goals (SDGs). innovation system. It actively develops a
Unwavering Execution: sustainable supply chain by incorporating
Creating a Paradigm of sustainability criteria into supplier audits.Value The Company implements rigorous quality management throughout the product
Focus Areas Corresponds to the Following Title AVD 2024 Initiatives SDGs lifecycle while continuously improving its after-sales service management system.Additionally it strengthens information
security measures to safeguard both
corporate and customer data privacy.The Company continuously improves
its governance structure; strengthens
compliance risk management and internal
Corporate Steadfast Operations: controls; prioritizes protection of rights
Governance Strengthening and interests of investors and engages Governance Efficacy with investors through multiple channels T h e C o m p a n y h a s e s t a b l i s h e d a n
and methods; strictly fulfills its disclosure incentives compensation mechanism
obligations; and safeguards the legitimate values employees’ right to democratic
rights and interests of stakeholders. Social communication and strengthens the
Responsibility Valuing Talent: protect ion of employee r ights and
Empowering Employee interests and human rights protection;
Growth it is committed to building a learning
organization establishing a comprehensive
staff training management system and
continuously improving the occupational
health and safety management system.AVD actively aligns with China’s “DualCarbon” strategy (carbon peaking and
carbon neutral i ty) by implementing
carbon audits obtaining carbon footprint
Green Development: certifications and adopting measures Sustainable Promoting Harmonious to manage climate-related risks while Manufacturing Coexistence capitalizing on climate opportunities. We are advancing the transition from fossil The Company actively fulfills its social
fuels to renewable energy exploring Commitment r e s p o n s i b i l i t y b y a d v a n c i n g r u r a l
green packaging solutions and enhancing to Goodness: revitalization through initiatives such as
pollution control infrastructure alongside Courageously consumer assistance and educational
the promotion of eco-friendly technologies. Shouldering Social support. It collaborates with various
Responsibility sectors of society to foster positive
community relations.
18 19Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
ESG Governance
ESG Governance Stakeholder Engagement
Governance Framework AVD values communication with stakeholders establishing smooth and diverse communication channels with various
stakeholder groups to share the Company’s latest developments. We actively respond to stakeholder expectations
To strengthen the social responsibility of the Company management and promote sustainable economy social and and requests through concrete actions working together to build a sustainable future.environmental development AVD has established a clear top-down ESG governance framework with defined respon-
sibilities. The Company formulated and disclosed its Environmental Social and Governance (ESG) Management Sys-
tem in October 2024. Stakeholders Expectations and Requests Our Response
Responsible for determining the Company’s ESG strategy objec-
tives reviewing and approving the ESG Management System ? Corporate Governance Regulation
Board of and evaluating ESG Reports and significant ESG-related matters. ? Compliance and Risk Management ? Corporate Governance Regulation
Decision- Directors ? Tax Compliance ? Maintaining Integrity and Clean Governance
making Board Members Responsible for coordinating internal and external ESG- Government and ? Anti-Bribery and Anti-Corruption
Level related efforts researching laws regulations policies and Regulatory Authorities
Strategy and material ESG issues applicable to the Company identifying
ESG Committee and managing ESG-related risks and opportunities with
significant impacts on business operations and guiding ? Protection of Stakeholders’ Rights and Inter- ? Stakeholder Engagement
the daily implementation of ESG initiatives as well as ests ? Investors’ Rights and Interests Protection
Management Chairman General Manager ESG the preparation of ESG reports.? Anti-Bribery and Anti-Corruption ? Encouragement of Research and Development Inno-
? Stakeholder Engagement vation
Level and Board Secretary LeadershipTeam Stakeholders and ? Research and Development (R&D) and Inno- ? Research the Platform Development
Investors vation
Assumes primary responsibility within their
Primarily consisting of scope of duties ensuring the implementation ? Occupational Health and Safety
key personnel from of ESG tasks according to the Company’s ? Occupational Health and Production Safety ? Employee Rights and Interests Protection
Execution various functional ESG Task Force overall plan and regularly reporting on ? Employee Training and Development ? Compensation and Benefits ManagementLevel departments of execution progress. ?
the Company and Protecting Employees’ Legitimate Rights and ? Employee Training Management
its subsidiaries Employees Interests ? Employee Development Channel
? Enhance Democratic Management and Employee Care
ESG Training ? Data Safety and Privacy Protection ? Information Security Management
? Products and Services Safety and Quality ? Quality Management? Customer Service Management
To improve ESG Management capabilities and strengthen ESG expertise the Company conducted multiple ESG-related Customer
training sessions for management and employees across all departments during the reporting period. The training covered
ESG-related laws and regulations the Company’s ESG management system and work arrangements. ? Supply Chain Management
? Supply Chain Safety ? Responsible Procurement
? Conflict Minerals Management
Suppliers
? Climate Action ? Greenhouse Gas Emissions Management
? Environmental Compliance Management ? Environmental Compliance Management
? Pollutant Emissions ? Pollution Compliance Emissions
? Waste Management ? Improvement of Resource Utilization Efficiency
Environment ? Energy Utilization ? Implementation of Green Office Practices
? Rural Revitalization ? Rural Revitalization in Supported Areas
? Social Contribution ? Participation in Social Welfare Activities
Community
2024 ESG Report Project Kickoff Meeting ESG Management System Training
20 21Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
ESG Governance
Management of Key Issues Material Issues Identification Results
Evaluation Process and Methods
Both financial materiality
The Company has fully referenced No. 17 Guidelines of the Shenzhen Stock Exchange for the Self-discipline Regulation and impact materiality20
of Listed Companies on Sustainable Development Report (Trial Implementation) 6(hereinafter referred to as the Guide- 28 18
lines ) and closely integrated industry-specific characteristics with its operational realities. It conducted a compre- 27 17 Financial materiality but
14527
hensive evaluation of its performance across relevant sustainability Issues to determine whether these Issues could 4 1225 26 3 not impact materiality
exert significant impacts on economic social and environmental dimensions (Impact Materiality) while also assessing 1523 24
whether each issue might substantially affect the Company’s business model operations strategic development fi- 11 9 13 Impact materiality but
nancial status cash flow financing methods and costs and value chain (Financial Materiality). By applying this dual 22 1 1021 not financial materiality
materiality analysis and aligning with international mainstream sustainability reporting standards the Company sys-
tematically prioritized Issues within its sustainability agenda through the following steps: 16 19
8 Neither financial materiali-
ty nor impact materiality
Step 1: Step 4: * Environmental Compliance Manage-ment
Learn About the Company Background Issue Confirmation and Approval * Energy Utilization
* Pollutant Emissions
Conduct an analysis grounded in global megatrends D evelop a list of impact materiality and * Circular EconomyMateriality to corporate finance Very high
China’s industrial development trends within the f inancial mater ia l i ty Issues ensur ing * Water Resource Utilization
macro-environmental context industry-specific transparent balanced and comprehensive * Waste Management
dynamics and the Company’s business model to disclosure of these Issues in the report. Dimension Issues Materiality Statement * Climate Action
identify stakeholders and assess the impacts risks * Ecosystem and Biodiversity Conserva-Climate Action Dual Materiality
and opportunities faced by the Company. Environmental Compliance tion
Management Dual Materiality
Step 2: Pollutant Emissions Dual Materiality * Protecting Employees’ Legitimate
Initial Issue Screening E Waste Management Dual Materiality Rights and InterestsEnergy Utilization Dual Materiality * Occupational Health and Safety
Water Resource Utilization Impact Materiality * Employee Training & Development
L everaging the 21 foundational Issues Circular Economy Impact Materiality * Research and Development (R&D) and
outlined in the Guidelines as a baseline and Ecosystem and Biodiversity Conservation Neither Financial Materiality nor Impact Materiality Innovationreferencing international standards such Protecting Employees’ Legitimate ? Product Safety and Quality
as GRI Standards IFRS S1 ESRS SASB and Rights and Interests Impact Materiality ? Customer Rights and Interests Protec-
MSCI alongside peer industry practices Employee Training & Development Impact Materiality tion
domestically and globally the Company has Occupational Health and Safety Dual Materiality ? Information Safety and Privacy Protec-
aligned its efforts with the United Nations Step 3: Issue Materiality Assessment Information Safety and Privacy Protection Impact Materiality
tion
Sustainable Development Goals (SDGs) to ? Technology Ethics
establish its 2024 ESG Issue Repository Product Safety and Quality Dual MaterialityCustomer Rights and Interests ? Responsible Supply Chain Manage-
comprising 28 prioritized issues. ● lmpact Materiality Assessment Protection Impact MaterialityS ment
Responsible Supply Chain
Outline the potential or actual positive or negative Management Dual Materiality
? Social Contribution
? Equal treatment for Small and Medi-
impacts of each Issue on the external environment Rural Revitalization Impact Materiality um-sized Enterprises
society and economy. Conduct research and Social Contribution Impact MaterialityResearch and Development (R&D) and ? Rural Revitalizationanalysis on stakeholders through questionnaires Innovation Dual Materiality
combined with expert judgment to assess issues Equal treatment for Small and Neither Financial Materiality nor Impact Materiality ? Corporate Governance Regulation
with impact materiality. Medium-sized Enterprises ? Protection of Stakeholders’ Rights and
Technology Ethics Neither Financial Materiality nor Impact Materiality
● Financial Materiality Assessment ESG Governance Impact Materiality Interests
Stakeholder Engagement Impact Materiality ? Tax Compliance
Through impact analysis dependency assessment Corporate Governance Regulation Impact Materiality ? Anti-Bribery and Anti-Corruption
and evaluation of other contributing factors coupled Compliance and Risk Management Impact Materiality ? Compliance and Risk Management
with expert judgment and risk assessment checklists G Tax Compliance Impact Materiality ? Anti-Unfair Competition
from various departments we systematically identify Protection of Stakeholders’ Rights and ? Stakeholder Engagement
and evaluate risks and opportunities under relevant Interests Impact Materiality ? ESG Governance
themes prioritizing those with financial materiality. Anti-Bribery and Anti-Corruption Impact Materiality
Anti-Unfair Competition Impact Materiality
2223
Very high Materiality to economic social and
environmental impactsContents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
24 25Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Corporate Governance
Regulation
Outstanding corporate governance is the cornerstone and safeguard of AVD’s steady advancement. The Company
continuously improves its corporate governance structure establishes and enhances internal management and con- Governance through the General Meeting of Sharehold-
trol systems consistently elevates governance standards and ensures standardized operations. ers Board of Directors and Board of Supervisors
Governance Framework General Meeting of Shareholders
The General Meeting of Shareholders serves as the supreme authority of the Company. AVD strictly complies with the
Company Law the Securities Law and the Rules for General Meeting of Shareholders of Listed Companies. We have
AVD strictly adheres to the requirements of the Company Law of the People’s Republic of China (hereinafter the formulated the Rules of Procedure for General Meeting of Shareholders to standardize procedures for convening pro-
“Company Law”) the Securities Law of the People’s Republic of China (the “Securities Law”) the SZSE Listing Rules posal submission notification conduct deliberation of agenda items and voting. We ensure equal rights for all share-
and other relevant laws and regulations. We have established internal governance systems including the Articles of holders and fully safeguard the voice of minority shareholders during deliberations of every resolution.Association of Shenzhen AV-Display Co. Ltd . (the “Articles”) and implemented a modern three-tier governance struc-
ture comprising the General Meeting of Shareholders Board of Directors Board of Supervisors and Senior Manage-
ment. This framework ensures clearly defined responsibilities and standardized operational mechanisms with each Key Performance:
governance body fulfilling its distinct role maintaining accountability and collaborating effectively to guarantee com-
pliant and efficient corporate operations. During the reporting period the Company held 3 General Meeting of Shareholders reviewing and approving
18 proposals.
General Meeting of
Shareholders Board of Directors
Board of The Board of Directors is the decision-making body of the Company and is accountable to the General Meeting of
Supervision Shareholders. The Company standardizes the internal structure deliberation and decision-making processes of the
Board of Directors Board of Directors in accordance with the Articles of Association and the Rules of Procedure of the Board of Directors
to ensure efficient and orderly operations. The Board of Directors has established four specialized committees: the
Strategy
and ESG Nomination Audit
Compensation Board Audit Committee the Compensation and Assessment Committee the Strategy and ESG Committee and the Nomina-
Committee Committee and Evaluation General Manager’s Secretary’s tion Committee. Members of each committee perform their duties in accordance with the Working Rules for Special-Committee Committee Office Office ized Committees of the Board of Directors ensuring robust support for the professional and efficient deliberation and
decision-making of the Board.Strategic Securities
Development ESG Task Audit
Department Force Department
Affairs
Department Key Performance:
During the reporting period the Company held 7 board meetings and reviewed 44 proposals with a
Finance Center Ganzhou AVD Monochrome Display BU Sales Center 100% attendance rate for the Board of Directors.Management 16 Compliance Management meetings were held 39 proposals reviewed including:
Center Beijing AVD Touch Display BU Technology Center
The Audit Committee held 6 meetings and reviewed 22 proposals;
AVD (Hong Kong) IoT BU Product Center The Compensation and Assessment Committee held 3 meetings and reviewed 5 proposals;
The Strategy and ESG Committee held 5 meetings and reviewed 5 proposals;
AVD (Thailand) E-Paper BU Quality Center
The Nomination Committee held 2 meetings and reviewed 7 proposals.Procurement
Center
AVD Organization Chart
26 27Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Diversity
When electing members of the Board of Directors the Company takes into comprehensive consideration various fac- Compliance Management
tors such as gender age cultural and educational background professional experience and skills. Currently the Com-
pany has one female director accounting for 14.29% of the board. Each Board of Directors member possesses exten-
sive work experience and diverse professional skills in fields such as applied chemistry fine chemicals environmental
management system electronic precision machinery electronic physics and devices law and financial management Internal Control
providing a solid foundation for the Company’s decision-making.In compliance with relevant laws and regulations such as the Corporate Governance Guidelines for Listed Companies
Independence and the Basic Standards for Enterprise Internal Control AVD has formulated its Internal Control Management System
The Company emphasizes the independence of the Board of Directors by establishing the Working System of Inde- which encompasses all operational phases including environmental control business process control accounting sys-
pendent Directors to leverage the active role of independent directors in standardizing operations and safeguarding tem control information system control information dissemination control and internal audit control. The Company
the interests of the Company and all stakeholders. Additionally to support the fulfillment of independent directors’ has established a three-tier internal control structure: ultimate accountability rests with the Board of Directors over-
duties the Company established the Independent Directors Special Meeting Work System in accordance with relevant sight functions are exercised by the Board of Supervisors and primary responsibility lies with functional departments
regulations providing convenience and support for convening special meetings of independent directors. and subsidiaries. At both board and management levels the Company continuously enhances risk identification mon-
itoring and mitigation capabilities while conducting inspections and evaluations to ensure effective operation of the
internal control system. An annual comprehensive assessment is performed to evaluate the effectiveness of internal
Key Performance: controls with truthful disclosure of the internal control self-assessment report to the public.During the reporting period the Company had three independent directors accounting for 42.86% of The Company has established an Internal Audit System setting up the Audit Committee under the Board of Directors
and a dedicated Audit Department. These entities are responsible for supervising internal audit activities evaluating
the board; 2 special meetings of independent directors were held reviewing 5 proposals. and optimizing the internal control system and conducting risk analysis on major investment projects in operation.Quarterly internal audits are conducted with corresponding work reports generated. During the reporting period the
Company completed 13 audit projects identifying 18 issues. As of the report’s disclosure date all identified issues
Supervisory Board have been rectified achieving a 100.00% rectification rate.The Supervisory Board serves as the highest oversight body of the Company. AVD’s Supervisory Board comprises
three Supervisors including one employee representative Supervisor and two non-employee representative Supervi- Risk Management
sors. In accordance with the Articles of Association and the Rules of Procedure for the Supervisory Board all Super- 2024
visors rigorously fulfill their responsibilities effectively overseeing the compliance of significant corporate matters The Company regularly identifies analyzes and evaluates in-
financial status and the performance of duties by Directors and Senior Management with legal and regulatory re- ternal and external factors in its operations that may hinder During the reporting period the Company
quirements thereby safeguarding the legitimate rights and interests of all shareholders. the achievement of internal control objectives assessing their was not involved in any main plant litigation
potential impact and likelihood to determine appropriate risk
Key Performance: response strategies. Additionally based on risk assessment re-
serious violations or dishonest behavior.sults the Company implements corresponding control measures
6 to ensure policies or procedures are properly executed. These During the reporting period the Company held Supervisory Board meetings and reviewed 25 proposals. measures include approval verification reconciliation review
periodic inventory checks record verification division of respon-
sibilities asset protection and comparisons with plans budgets
and prior performance thereby keeping risks within acceptable
limits.AVD continues to enhance Risk Management training further
Compensation Management for Directors Supervisors strengthening risk management awareness. The Company conducts regular and ad hoc specialized training to enhance
and Senior Executives its risk management capabilities and resilience ensuring sta-
ble development. During the reporting period the Company
was not involved in any main plant litigation serious viola-
The Company’s Board of Directors has established a Remuneration and Evaluation Committee. Based on the Compa- tions or dishonest behavior.ny’s operational development and actual conditions while referencing regional and industry-specific remuneration
benchmarks for comparable roles in listed Companies the Committee formulates and reviews remuneration policies Compliance Training
and plans for directors and senior executives according to their positions responsibilities and work scope. Annually
the Committee assesses the performance of directors and senior management in fulfilling their duties conducts annu-
al performance evaluations drafts remuneration proposals and corresponding reward/punishment mechanisms based Key Performance:
on evaluation results submits these for Board approval and oversees implementation of approved plans. During the 9 2284
reporting period the Company convened relevant meetings to approve the 2024 Remuneration Plan for Directors During the reporting period the Company conducted internal risk training sessions with
Supervisors and Senior Management and reviewed the 2023 compensation packages for directors supervisors and participants attending internal risk control training totaling 152.00 hours of training.senior executives.
28 29Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Tax Management
AVD strictly complies with national laws and regulations such as the Law of the People’s Republic of China on Tax Investor Relations Management
Collection and Administration the Provisional Regulations of the People’s Republic of China on Value-Added Tax and
the Enterprise Income Tax Law of the People’s Republic of China when formulating its Financial Management System
continuously enhancing its tax management framework. The Company proactively fulfills its tax obligations with cen- AVD emphasizes communication with investors by implementing its Investor Relations Management System effec-
tralized income tax filings and payments handled by the Finance Center while other tax obligations are managed by tively safeguarding the legitimate rights and interests of investors particularly public investors. The Company has
the finance departments of respective business units. Concurrently the Company strengthens invoice management established multi-channel communication platforms including periodic Reports interim Reports and ESG Reports to
processes to effectively mitigate tax risks and elevate overall tax management proficiency. promptly and accurately convey governance progress and achievements across various aspects. Through investors
hotlines online reception events performance briefings and IR email we address investors’ concerns and build effec-
Related Party Transaction Management tive communication bridges.To standardize decision-making procedures for related party transactions between the Company its holding sub- Key Performance:
sidiaries and affiliated parties and to prevent such transactions from impairing the interests of the Company and
minority shareholders the Company has established the Related Party Transaction Decision-Making System and the During the reporting period the Company conducted 6 investor communication activities including 1
Prevention of Capital Appropriation by Major Shareholders and Other Related Parties System in accordance with the
Company Law relevant regulations and the Articles of Association . These systems clearly define the review and performance briefing 1 online collective reception day for investors and 4 offline institutional research
disclosure procedures pricing methodologies and other aspects of related party transactions. The Company strictly sessions. It hosted 58 offline investor visits responded to 65 investor inquiries with a 100.00%
enforces a related party abstention mechanism requiring recusal of related directors and shareholders during deliber-
ations on related party transactions. We consistently uphold the principles of fairness impartiality and transparency response rate replied to 114 Reply Interactive Exchange and answered 255 investor calls.in all transactions with related parties ensuring that the Company’s related party transactions do not compromise the
interests of the Company and its shareholders.Investors’ Rights and
Interests Protection Protection of Stakeholders’ and Creditors’ Rights and Interests
AVD continuously optimizes its information disclosure mechanisms to ensure timely accurate and comprehensive
information dissemination. Meanwhile we continuously improve internal management and enhance decision-making Shareholder Returns
transparency taking concrete actions to safeguard investors’ legitimate rights and interests while working together to Cash Dividend Distribution of the Company in the
create value. AVD prioritizes shareholder returns and Past Three Years
strictly adheres to the profit distribution
provisions outlined in the Articles of As- Indicators Unit 2022 2023 2024Note
sociation . The company has formulated
Information Disclosure the AVD Shareholder Returns Plan for the
Times Three Years (2023-2025) to ensure Cash Dividend Per Share yuan 0.40 0.40 0.40
reasonable investment returns for share-
AVD strictly complies with relevant laws and regulations such as the Company Law Securities Law and Measures for holders enhance the transparency and RMB
the Administration of Information Disclosure by Listed Companies . The Company has established a series of internal operability of profit distribution decisions
Total Dividend Payout 4800.00 4742.96 4742.96
10000
rules and regulations including the Information Disclosure Management System Major Information Internal Reporting and facilitate shareholder oversight of Proportion of Net
System and Public Opinion Management System. These systems clarify the scope of material information define the corporate operations and dividend poli- Profit Attributable to
review and disclosure procedures and ensure the truthfulness accuracy completeness timeliness and fairness of cies. Shareholders of the Listed % 30.14 38.78 52.35
the Company's information disclosure. The Board Secretary is designated as the primary contact for external infor- Company in Consolidated
mation dissemination with clear assignment of responsibilities for major information reporting across departments. Financial Statements
Additionally the Company emphasizes the confidentiality of non-public information fostering employee compliance Note：The Company's 2024 profit distribution proposal must be reviewed and approved
awareness through enhanced education and strengthened daily management to mitigate information disclosure risks by the shareholders' meeting before implementation.and prevent insider trading.Key Performance: Protection of Creditors’ Rights
During the reporting period the Company issued a total of 125 announcements and related documents In all main plant operational decisions the Company fully considers the legitimate rights of creditors ensuring finan-
and was not penalized for any violations in information disclosure. cial stability and the safety of assets and funds protecting creditors’ lawful interests from infringement and main-
taining the Company’s strong reputation.
30 31Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Maintaining Integrity and
Clean Governance
AVD actively fosters a clean and upright corporate culture resolutely opposing all unethical behaviors that undermine integri-
ty and reputation with zero tolerance for commercial bribery unfair competition and other violation activities. The Company
steadfastly adheres to market competition principles builds upon the foundation of integrity in operations actively fosters Anti-Commercial Bribery and Anti-Corruption Training Status
a fair and free market environment shapes a positive corporate image through concrete actions and strives to establish a
trustworthy and orderly business ecosystem.Indicators Unit 2024
Anti-Bribery and Anti-Corruption Number of Anti-Commercial Bribery and Anti-Corruption training sessions Times 2
Number of Managers Trained in Anti-Commercial Bribery and Anti-
Corruption Practices People 53
Integrity Management System
Percentage of Management Personnel Participating in Anti-Commercial % 89.83
AVD rigorously adheres to the Criminal Law of the People’s Republic of China the Public Security Administration Punishments Bribery and Anti-Corruption Training
Law and other relevant laws and regulations. We uphold and support the Ten Principles of the United Nations Global Com-
pact firmly opposing all forms of extortion bribery and corrupt practices. The company has established internal policies such Total hours of Anti-Commercial Bribery and Anti-Corruption Training for Hours 212.00
as the AVD Code of Conduct Ethical Management Guidelines and Labor Ethics Risk Assessment Procedures which explicitly Managers
define anti-corruption measures whistleblowing mechanisms and compliance standards. These frameworks foster a culture
of integrity rigorously mitigate corruption risks and ensure alignment with global ethical benchmarks. Management’s Average Training Hours on Anti-Commercial Bribery and Hours per
Anti-Corruption Compliance person 3.59
The Company has established a Code of Conduct Working Group with an affiliated Office of the Code of Conduct Working
Group composed of the General Manager Deputy General Managers and department heads from the Securities Affairs de- Number of Employees Trained in Anti-Commercial Bribery and Anti-Cor-
partment Audit department and General Manager’s Office. At the same time each department has appointed integrity and ruption Compliance Programs People 766
self-discipline supervisors to oversee and advance the development of integrity initiatives.Percentage of Employees Trained in Anti-Commercial Bribery and An-
Prevention and Control of Corruption Risks ti-Corruption Compliance % 70.99
AVD has developed and refined the Risk and Opportunity Analysis and Assessment Form to identify and evaluate ethical Total hours of Anti-Commercial Bribery and Anti-Corruption Training for
risks in procurement production activities sales activities internal Company operations management and other processes Employees Hours 1532.00
resulting in the Ethical Risk Identification and Evaluation Report. The Company regularly conducts specialized audits and
oversight of business operations to promptly identify integrity risks. Key areas such as sales and collections procurement Employees’ Average Training Hours on Anti-Commercial Bribery and An- Hours per
and payments production R&D inventory management fixed asset management and capital management are prioritized ti-Corruption Compliance person 1.42
for inspection. Additionally the Company actively promotes its culture of transparency. To further strengthen the Company’s
integrity and self-discipline initiatives the Company has included the integrity agreement signing rate as a performance ap-
praisal metric. The Human Resources Department will compile monthly statistics on the percentage of key personnel who
have signed integrity agreements. In 2024 the signing rate of the Integrity and Self-Discipline Commitment Letter by the
Company’s employees reached 100.00%.Reporting Channels
2024
In 2024 the Company experienced no incidents of commercial bribery or corruption was not investigated by relevant The Company prioritizes maintaining open channels for internal monitoring reporting and complaints. It encourages
authorities and faced no lawsuits against the Company or its Directors management personnel or employees for employees suppliers clients and other stakeholders to report any illegal activities disciplinary violations or breaches
commercial bribery or corrupt practices. of corporate ethics policies through the official website complaint hotlines and email either openly or anonymously. The Company has established a whistleblower protection mechanism to safeguard the legitimate rights and interests
of whistleblowers strictly prohibiting the disclosure of their personal information to prevent retaliatory actions.Integrity Culture Development
AVD has always placed high importance on integrity compliance edu- Reporting methods
cation for employees and continuously advances the cultivation of a
corporate integrity culture. The company’s Executive Office and relevant
departments regularly conduct integrity and self-discipline training pro-
grams covering Issues such as compliance regulations and ethical values Reporting Hotline: Contacting Email:
for integrity in the workplace integrity risk exposure points and preven-
tive measures for critical roles disciplinary policies for violations and les- 0755-86106838 COC@av-display.com
sons-learned education. Through in-person lectures and interactive Q&A
sessions AVD reinforces employees’ awareness of integrity and self-disci-
pline ensuring that operations progress steadily on a path of compliance
and ethical integrity. Integrity and Self-Discipline Training
32 33Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Anti-Monopoly and Anti-Unfair Competition Com- Reporting Channels
pliance AVD has established complaint reporting and appeal mechanisms for anti-monopoly and anti-unfair competition practices. Any employee supplier customer or other relevant party of the Company has the right to submit re-
al-name or anonymous reports to the Company’s management and audit department through various channels such
Anti-Monopoly Management System as telephone email the Company's official WeChat account or company mailbox regarding any monopolistic practic-es or violations of fair competition within or outside the Company. The Company provides protection to whistleblow-
AVD strictly complies with national laws and regulations such as the Anti-Monopoly Law of the People’s Republic of ers and strictly prohibits any form of retaliation.China and the Anti-Unfair Competition Law of the People’s Republic of China respects market competition principles
and has established the Anti-Monopoly and Fair Competition Management System . The Legal Department is primarily
responsible for collecting relevant laws and regulations on anti-monopoly and fair competition formulating institution- Reporting methods
al systems aligned with the Company's business operations and conducting awareness training. The Company iden-
tifies and addresses potential compliance risks in its business activities issues the Anti-Monopoly and Unfair Competi-
tion Risk Identification and Evaluation Report and ensures all departments adhere to relevant regulations and uphold Reporting Hotline: Contacting Email:
fair competition principles. During the reporting period the Company has not incurred any litigation or administrative
penalties related to violations of anti-monopoly or anti-unfair competition laws. 0755-86106838 COC@av-display.com
2024
During the reporting period the Company has not incurred any litigation or administrative penalties related to
violations of anti-monopoly or anti-unfair competition laws.Responsible Marketing
Anti-Monopoly Training AVD upholds the business philosophy of Compliance and integrity implements the Responsible Marketing system
The Company continuously conducts education on anti-monopoly laws and regulations to foster a healthy transpar- and commits to conducting business with high ethical standards taking responsibility for Customers investment and
ent business environment and promote fair commercial Competition. society. The Company strictly adheres to the principle of fair competition ensuring all marketing activities are lawful proper and honest with all marketing content being truthful and non-misleading. At the same time the Company
continues to provide employee education and training promoting responsible marketing awareness among all mar-
keting staff key personnel involved in external communications and third-party representatives while implementing
specific responsible marketing requirements across all business activities.Case AVD Conducted Training on Anti-Monopoly and Fair Competition Compliance Management Measures
In December 2024 to strengthen all em-
ployees’ understanding and compliance
with anti-monopoly laws and regulations
the Company’s Legal department organ-
ized training on the Anti-monopoly and
Fair Competition Compliance Management
System for emp loyees across all depart-
ments. The training covered an overview
of the Anti-monopoly Law of the People’s
Republic of China and fair competition Training on Anti-Monopoly and Fair Competition
relevant case analysis and an introduction Compliance Management Measures
to compliance measures for anti-monopoly
and fair competition.Key Performance:
During the reporting period the Company conducted 1 anti-monopoly and fair Competition training session
with 655 participants and a total training duration of 1310.00 hours.Training of Responsible Marketing System
34 35Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
36 37Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Climate Action
AVD actively responds to the economic opportunities and challenges that climate change may bring to the Company The Board of Directors is responsible for guiding and improving climate-related strategy formulation supervising and re-
integrating climate change response into company management and operational practices making greenhouse gas viewing the implementation of climate change response actions; at the same time it is responsible for identifying assess-
emission reduction an important part of its environmental management integrating carbon management into the en- ing and managing significant climate risks and opportunities. The Strategy and ESG Committee is responsible for identify-
tire lifecycle of company operations and seeking an economic model to address climate change risks. ing climate-related risks and opportunities assessing the impact of risks and opportunities on the Company’s business and
formulating development plans related to green production and green operation. The ESG Special Task Force is responsible
for benchmarking against industry best practices designing climate risk response measures based on the Company’s actu-
al situation identifying and conducting basic assessments of climate risks and carrying out climate change risk manage-
Governance ment work.The Company has formulated the Greenhouse Gas Quantification and Reporting Management Procedures established
a greenhouse gas management team with the Safety Committee Director serving as the team leader and convened
AVD integrates climate change risk and opportunity responsibilities into the ESG governance framework establishing various departments to form an informal organization for greenhouse gas quantification and reporting.a top-down climate governance system led by the Board of Directors. At the same time the Company actively conducts climate action training sets up energy conservation and carbon
reduction statistical monitoring establishes an energy conservation assessment and reward system links carbon re-
duction performance with the compensation of relevant department personnel and further promotes the Company’s
climate action and carbon reduction practices.Board of Directors
Strategy and ESG Committee
ESG Special Task Force
Various Risk Management
Departments and Greenhouse Gas
Management Team
Climate Governance Work System Carbon Emission Inventory Training
38 39Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Strategy
Climate change is having a profound impact on human health supply chain stability global trade etc. AVD fully
recognizes the complex systemic connections between climate-related risks and opportunities following the recom- Type of Risk/ Description of Risk/ Likelihood of Impact Expected Financial Opportunity Opportunity Occurrence1 Duration2 Impact Countermeasures
mendations of TCFD (Task Force on Climate-Related Financial Disclosure) identifying the risks and impacts of climate
change on the Company and actively taking response measures. 1. Strengthen internal talent
Decline in prod- cultivation and external recruit-
uct competitive- ment increase R&D investment
Type of Risk/ Description of Risk/ Likelihood of Impact Expected Financial Slow progress in the ness difficulty enhance the Company’s R&D
Opportunity Opportunity Occurrence1 Duration2 Impact Countermeasures Techno-logical development of low-car-
Short Me- capabilities and accelerate the
bon technologies or High dium and
in adapting to
Risks Long Term n e w m a r k e t
development and application of
green products. demands lead- new technologies.2. Strengthen market research
1. Establish an emergency man- ing to reduced actively engage in industry coop-
agement organization strength- sales. eration on green and low-carbon
Extreme weather such Facility repairs en the response mechanism and technologies.as typhoons floods and transporta- enhance the Company’s opera-
heavy rains and heat tion interruptions tional resilience. 1. Strengthen internal manage-
waves may lead to wil l affect the 2. Combine weather forecast ment to reduce material costs;
facility damage trans- supply of raw information to provide timely Acute optimize product structure and portation difficulties Medium Short and materials leading warnings and strengthen hidden
Rising prices of
raw mater ia ls phase out high-energy-consum-Risks supply chain disruptions Medium Term to production or danger inspections effectively ing products.and operational inter- service interrup- preventing risks brought by ex-
Rising prices of raw ma- and energy lead 2、Focus on energy conservation
ruptions affecting the tions resulting in treme weather.terials and energy; fail- t o i n c r e a s e d
Market ure to effectively meet Short product costs; re- and emission reduction improve
Company’s normal pro- increased costs 3. Establish a diversified supply Risks customer demand for High Medium and resource utilization efficiency Phys- duction and operations. and reduced rev- chain develop alternative sup- Long Term
duced customer and recycling ratio.ical enue. pliers and logistics channels and
green and low-carbon demand results in 3. Closely monitor customer
reduce the risk of supply chain products. loss of company
Risks revenue and mar- needs seize new opportunities disruptions.ket share. in green development and fully meet customer demands for
low-carbon and efficient energy
1. Implement constant tempera- Tran- transformation.
ture and humidity management sition
Extreme high temper- in production workshops pro- Risks
atures and rising sea Affect factory vide employees with heat relief
1. Proactively release ESG re-
ports and actively participate in
Chronic levels caused by global Low Medium and
production effi- benefits and reduce production
Risks warming will affect the Long Term ciency leading losses caused by rising tempera-
Ecovadis ratings and CDP disclo-
to a decline in tures. If the Company fails to sures.Company’s production
and operations. revenue. 2. Adjust working hours and en-
properly address climate Reputation dam- 2. Comply with laws and regula-
vironment appropriately accord- Repu- change it may lead to age leads to loss tions communicate proactively
ing to temperature changes and tational decreased support from Medium and and maintain honors such as
employee needs. Risks stakeholders and ad-
Low Long Term of market share being on the law enforcement
versely affect the Com- and decreased
pany’s brand image and sales revenue.positive list and having good en-
vironmental credit.reputation. 3. Strengthen environmental
1. Continuously monitor changes management and monitoring
in relevant policies and laws as- and adhere to sustainable devel-
sess their impact and promptly opment.develop response plans.Domestic and interna- 2. Actively carry out energy-sav-ing and emission reduction 1. Driven by market demand tional organizations
require companies to re- management work based on the
accelerate the development of
duce their carbon emis- Companies need Company’s actual production
green and low-carbon products.Tran- Policy sions putting pre ssure Short and to st rengthen and operations.and Market leader-
2. Actively explore the applica-
sition on corporate carbon High Medium carbon emission 3. Continuously innovate in Green production and ship drives prod-
tion of new technologies new
Risks Legal reduction efforts. Fail- Term management technology promote low-carbon Product energy-sav ing and uct and customer
equipment and new processes
Risks ure to comply on time l ead ing to in - emission reduction technologies; Op- and carbon reduction have Short structure trans-
and build a low-carbon product
will result in fines and creased costs. prioritize the use of low-ener- portu- Service become trends and High Medium and formation en-
system based on the Company’s
damage the Company’s gy-consuming equipment grad- market demand for Long Term hances corporate
situation to improve market
brand image. ually phase out high-energy-con-
nities Oppor-
low-carbon products is competitiveness competitiveness.suming equipment; continuously tunities increasing. and boosts sales 3. In response to customer de-
increase the proportion of clean growth. mands for low-carbon and sus-
energy use and gradually re- tainable development services
duce the Company’s carbon improve relevant management
emissions. systems and methods and en-
hance professional service levels.
1Likelihood of occurrence refers to the frequency interval and probability of a risk/opportunity materializing assessed based on historical proba-
bility external scenarios policy implementation progress and expert forecasts. The likelihood of occurrence is graded from “low” to “high”.
2Impact time frame refers to the varying time periods in which different climate-related risks and opportunities will affect the Company. The
Company categorizes the impact time frame into: short-term (0-1 year) medium-term (1-5 years) and long-term (beyond 5 years).
40 41Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Impact Risk and Opportunity Management Greenhouse Gas Emission Management
AVD will incorporate climate change risks into the Company’s risk assessment and control system establish standard- Global climate change is currently an important environmental issue and consensus faced by the world. Based on the
ized climate risk identification assessment and management processes and proactively formulate policies and meas- environmental concept of sustainable development the Company is committed to greenhouse gas emission inventory
ures in line with its business planning to seize value creation opportunities. and control maintaining the sustainable development of the global ecological environment.Risk Identification Risk Assessment Greenhouse Gas Emissions
The Company formulates the Greenhouse Gas Quantification and Management Procedure establishes a greenhouse
Refer to the TCFD’s recommended disclosure Based on risk identification the Company assess- gas management team conducts annual greenhouse gas inventory work and prepares relevant reports which are
framework based on national laws regulations es the likelihood impact cycle and potential ma- reviewed and published by third-party institutions. During the reporting period the Company and Ganzhou AVD have
policy requirements and domestic and interna- jor financial impacts of climate change risks and completed the 2023 greenhouse gas inventory work in accordance with the ISO14064-2018 standard requirements. As
tional sustainable development trends fully con- opportunities. of the date of this report’s disclosure the 2024 greenhouse gas inventory work for the Company and Ganzhou AVD is
sider the Company’s actual operating conditions underway.and identify the risks and opportunities the Com-
pany faces in climate action. The Company actively manages greenhouse gas emissions conducts carbon footprint accounting and certification for LCM and TFT products produced by the Company according to the ISO14067-2018 carbon footprint accounting stand-
ard and has conducted carbon footprint accounting and certification for the 7-inch touch display integrated screen
products produced by the Company according to the carbon footprint labeling certification standards of the Guang-
Risk Response Risk Review dong-Hong Kong-Macao Greater Bay Area.Develop targeted risk response strategies based The Company regularly organizes relevant Indicator Unit 2023 2024
on the results of risk assessment to reduce or
eliminate the adverse impacts of climate change departments to conduct internal reviews and
risks on the Company’s operations and financial external verifications of climate change risks to Greenhouse Gas Emissions
status. validate their effectiveness. tCO e 1459.65 2018.80(Scope 1) 2
Greenhouse Gas Emissions
tCO2e 17458.17 19470.28(Scope 2)
Indicators and Goals
Greenhouse Gas Emissions
tCO e 18917.82 21489.08
(Scope 1 + Scope 2) 2
The Company continuously improves its climate change management system sets phased climate goals and com-
mits to achieving carbon peak by 2030 and carbon neutrality by 2060.Greenhouse Gas Emission Intensity
tCO e / RMB 10000 sales 0.19 0.20
(Scope 1 + Scope 2) 2
Objective Content Achievement Status Other Indirect Greenhouse
tCO e 122799.02 144107.50
Gas Emissions (Scope 3) 2
Using 2020 as the baseline by 2025 the carbon emissions per unit of industrial
added value for Scope 1/2 will decrease by 16.00% compared to 2020; by 2030 the
decrease will reach 30.00%; by 2050 achieving net-zero carbon emissions per unit In Progress
of industrial added value for Scope 1/2. Total Greenhouse Gas Emissions tCO2e 141716.84 165596.58
By 2030 the proportion of suppliers participating in Scope 3 emission reduction ac-
tions will reach 30.00%; meanwhile the unit carbon emissions for Scope 3 need to In Progress
achieve an annual average reduction of 3.50%. 3If there are any discrepancies or conflicts between the greenhouse gas emission-related data in this report and the 2024 Greenhouse Gas
Inventory Report the 2024 Greenhouse Gas Inventory Report shall prevail.
42 43Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Greenhouse Gas Emission Reduction Measures
2024
AVD actively responds to the national call for carbon peak and carbon neutrality. By adopting photovoltaic power
generation and purchasing clean energy the Company conducts internal energy-saving and consumption-reduction As of the end of the reporting period the Company
activities. Through carbon audits and carbon footprint data sharing the Company discusses with customers the op- has passed the ISO14001 Environmental Manage-
timization of reasonable sleep functions for display products and with suppliers on improving logistics and transpor- ment System Certification. During the reporting
tation methods and resource-saving solutions guiding customers and suppliers in greenhouse gas emission reduction period the Company did not experience any major
efforts. At the same time the Company is committed to green technology research and development creating green environmental accidents or violations in the envi-
and low-carbon products and supporting the national “dual carbon” goals with practical actions. ronmental field.AVD Environmental Ganzhou AVD Environmental
Management System Management System
Case Electronic Paper Display Products Certification Certificate Certification Certificate
Governance
Electronic paper is an innovative display technology that occupies an important position in the field of The Company has formulated environmental management systems such as the Environmental Management Opera-
display technology due to its unique reflective display principle significant low energy consumption char- tion Guidelines Three Wastes and Noise Protection Control Procedures Environmental Pollutant Emission Standards
acteristics wide viewing angles eye-friendly display effects thin and flexible physical properties excellent and Hazardous Waste Management Regulations . The Company has established an Environmental Protection Office to
durability and environmental advantages. coordinate and handle environmental protection-related matters and has set up environmental protection-related KPI
The Company focuses on the research and development of small and medium-sized electronic paper prod- indicators regularly conducting functional assessments of responsible personnel. The Equipment Department Process
ucts which can be applied in price tags nameplates smart homes and other fields. Early collaborations Department Manufacturing Department and Administration Department in conjunction with their respective respon-
with Shenzhen Tsinghua Research Institute Southern University of Science and Technology and Hong Kong sibilities collaborate with the Environmental Protection Office to manage and prevent pollutants such as exhaust gas
University of Science and Technology completed the development of key optoelectronic materials. The Com- wastewater and waste.pany has achieved full-chain independent research and development from pigment particle modification
electrophoretic liquid compounding capsule synthesis film coating to electronic paper module processing. Indicator Unit 2023 2024
As of December 31 2024 the company has filed 32 patents related to e-paper technology including 6
granted invention patents and 8 utility model patents. During the reporting period the company continued Environmental Protection Investment RMB 10000 169.00 297.70
to increase investment in e-paper projects vigorously advancing production line construction and optimiz-
ing its personnel allocation system. Currently the company has essentially established mass production ca- Pay Environmental Protection Tax yuan 5922.00 12187.00
pabilities for e-paper products and has achieved small-scale shipments. Moving forward the company will
closely align with industry trends and market demand to drive continuous iteration and upgrades in e-paper
technology while actively expanding the application boundaries of its products. Strategy
AVD has always regarded environmental risk prevention and control as an important task for enterprise development.As a key pollutant discharge unit in Shenzhen the Company always maintains a keen focus on environmental issues
Environmental and actively identifies environmental-related risks and opportunities.Compliance Management Type of Risk/ Description of Risk/ Likelihood of Impact Expected Financial Opportunity Opportunity Occurrence Duration Impact Countermeasures
With the increasingly 1. Pay timely attention to andAVD always adheres to the ecological and environmental protection concept of “Lucid waters and lush mountains are inval- strict environmental strictly comply with laws anduable assets” and the responsibility policy of “Improving the environment saving resources; reducing hazards green produc- protection policies and regulations related to pollut-tion” taking resource conservation and environmental protection as its mission. The Company continuously improves its envi- Policy regulations of the gov-ernment the Company High Short Term Increase oper-
ants and waste.
2. Maintain and update envi-
ronmental management system formulates and strictly implements environmental management systems and continuously Risk may face high fines and ating costs ronmental protection facilities
enhances environmental management levels contributing to environmental protection and ecological balance maintenance. litigation compensation in a timely manner.if there is non-compliant 3. Conduct regular environ-
discharge. mental hazard inspections.Environmental Management System Risk If the Company has
problems in the treat-
ment of pollutants and
waste which causes Strengthen communication with Repu- stakeholders and disclose infor-
The Company strictly follows national laws and regulations such as the Environmental Protection Law of the People’s Repub- tation public dissatisfaction Low Long Term Revenue Decline mation on pollutant and waste
lic of China Water Law of the People’s Republic of China Law of the People’s Republic of China on the Prevention and Control it may face public pro-Risks tests boycotts and emissions in a timely and correct
of Environmental Pollution by Solid Waste Law of the People’s Republic of China on the Prevention and Control of Water Pol- other situations and the manner.lution Law of the People’s Republic of China on the Prevention and Control of Atmospheric Pollution and the requirements of Company will face pub-lic opinion pressure.the operating locations leading with green development and continuously and efficiently operates the environmental man-
agement system.
44 45Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Type of Risk/ Description of Risk/ Likelihood of Impact Expected Financial Indicators and Goals
Opportunity Opportunity Occurrence Duration Impact Countermeasures
AVD strictly monitors the emission indicators of various pollutants and wastes complies with and implements the national
Reduce water resource
c o n s u m p t i o n a n d 1. Optimize production processes and local emission standards and the limits specified in the pollutant discharge permits. The Company ensures that all emis-
wastewater discharge and introduce advanced technol- sion indicators are controlled within the permitted range steadily advancing ecological environmental protection and green
t h r o u g h m e a s u r e s ogies and equipment to improve sustainable development.Op- Re- such as wastewater
portu- source reuse and water-saving Reduce operating
resource utilization.Effi- technologies; improve High Long Term costs 2. Strengthen the resource uti-nities ciency resource uti l ization lization of waste tap potential Indicator Achievement Status
efficiency and reduce from all aspects and achieve
resource waste through efficient resource allocation and
waste classification re- benefit transformation.cycling and reuse.Number of Qualified Waste Emission
100.00%
Impact Risk and Opportunity Management Concentration Standards
Environmental Risk Management
AVD attaches great importance to environmental risk management and has formulated the Environmental Factor Identifica-
tion and Evaluation Operation Guide. Through regular internal environmental protection inspections third-party agency com- Number of Times Pollutant Emissions Failed to
missioned inspections and external regulatory agency environmental protection special inspections the Company identifies 0Meet Standards
and evaluates its environmental factors outputs the Summary and Evaluation Table of Important Environmental Factors and
implements hierarchical control of the identified important environmental factors formulating corresponding risk prevention
and control measures to achieve effective control of environmental risks.Hazard Identification
Wastewater Reuse Rate 72.36%
The Company regularly organizes internal and external professionals to conduct in-depth inspections of various aspects such
as production workshops and the operation of environmental protection facilities focusing on whether the waste gas and
wastewater treatment systems are operating normally whether the storage and disposal of hazardous waste are compliant
and whether there are potential environmental risks in the use of raw materials. At the same time with the help of advanced
monitoring equipment and information technology the Company collects and analyzes environmental data in real time to en- Total Emission Intensity of Wastewater Waste
sure timely detection of potential hazards and rapid initiation of the rectification process. Gas Pollutants and Hazardous Waste Per 100 11.71 tons/100 million yuan
Million Yuan of Output Value
Key Performance:
In 2024 the Company conducted 28 special environmental protection inspections and 14 environmental
hazard inspections with a 100.00% rectification rate. Environmental Protection Training
To deeply implement environmental awareness and take environmental actions the Company continuously educates all em-
Emergency Drill ployees on environmental protection during the establishment of the environmental management system. The Company’s
Safety Committee organizes environmental protection training activities popularizing professional knowledge of environmen-
The Company has formulated the Emergency Plan for Sudden Environmental Incidents to standardize environmental emer- tal protection conducting special training on hazardous waste knowledge and clean production training for employees. The
gency management improve the ability to respond to and prevent sudden environmental incidents and ensure that in the training content includes relevant legal and regulatory requirements basic environmental protection knowledge and spe-
event of a sudden environmental incident it can be handled in a timely orderly efficient and proper manner according to the cialized knowledge and skills for important positions ensuring that participants comprehensively understand the knowledge
predetermined plan minimizing casualties and property losses and reducing environmental damage and social impact. The related to environmental management. At the same time the Company focuses on the professional ability training of envi-
Company has conducted a detailed feasibility assessment of the identified and established plan items included them in the ronmental protection-related personnel. During the reporting period one person obtained the Environmental Protection Head
annual plan and conducted drills. At the same time the Company has comprehensively analyzed the problems encountered Teacher Certificate issued by the Shenzhen Longgang District Ecological Environment Industry Association and one person
during the drills and continuously improved the emergency plan. During the reporting period AVD updated the Emergency obtained the Wastewater Operation Certificate issued by the Shenzhen Longgang District Ecological Environment Industry
Plan for Sudden Environmental Incidents based on the current actual situation of the Company and completed the filing. Association.Key Performance: Key Performance:
In 2024 the Company organized a total of 7 environmental protection training sessions with 18
In 2024 AVD and its subsidiaries organized a total of 4 environmental emergency drills.participants and a total training duration of 60.00 hours.
46 47Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Exhaust Gas Management
Pollutant Emissions
The exhaust gas generated during the Company’s production process mainly includes organic exhaust gas from processes
such as screen printing baking coating and exposure; soldering exhaust gas from the reflow soldering process; and acidic
All new construction renovation and expansion projects of the Company are conducted in accordance with legal and regula- exhaust gas from the etching process. The Company currently has 5 sets of exhaust gas treatment facilities including 3 sets
tory requirements for environmental impact assessment and acceptance and relevant environmental protection administra- using activated carbon adsorption 1 set using UV photolysis + activated carbon adsorption and 1 set using a chemical spray
tive permits are obtained including but not limited to environmental impact assessment approvals environmental protection tower (alkali solution). Ganzhou AVD currently has 5 sets of exhaust gas treatment facilities including 3 sets using activated
facility acceptance approvals and pollutant discharge permits. The Company conducts self-monitoring in accordance with carbon adsorption and 2 sets using a chemical spray tower (alkali solution). Workshop exhaust gas is collected by the exhaust
regulations formulates self-monitoring plans and continuously improves monitoring accuracy by increasing the construction gas collection system and discharged through high-altitude pipelines to the rooftop where it is treated by various facilities
of monitoring stations and updating environmental monitoring equipment. The Company’s self-monitoring includes wastewa- to meet standards before being discharged at high altitude. The Company’s exhaust gas is tested semi-annually by qualified
ter and exhaust gas monitoring and it entrusts qualified testing companies to conduct regular inspections to ensure legal and third parties and the treated exhaust gas emissions comply with the Printing Industry Volatile Organic Compound Emission
compliant emissions. During the reporting period all tests were within the limits and no impact was observed on employees Standards (DB44/815-2010) and the Guangdong Province Air Pollutant Emission Limits (DB44/27-2001). The treated exhaust
or surrounding residents. gas emissions of Ganzhou AVD comply with the Integrated Emission Standard of Air Pollutants (GB/T 16297-1996).
2024 Indicator Unit 2023 2024
During the reporting period all tests were within the limits and no impact was observed on employees or
surrounding residents. Exhaust Gas Emissions Ton 59044.00 48024.20
Indicator Unit 2023 2024 Organic Waste Gas Treatment Volume Ton 46566.00 28692.20
Pollutant Monitoring Compliance Rate % 100.00 100.00 Acidic Waste Gas Treatment Volume Ton 11478.00 19332.00
Environmental Protection Facility Synchronization
Operation Rate % 100.00 100.00
tons/RMB
Waste Gas Emission Intensity 0.58 0.44
10000Construction Project Environmental Protection“ ThreeSimultaneous” Implementation Rate % 100.00 100.00
Noise Management
Wastewater Management The Company strictly follows the requirements of the Emission Standard for Industrial Enterprises Noise at Boundary
(GB12348-2008) for noise management. To reduce boundary noise the Company adopts low-noise and silent equipment and
The wastewater generated by the Company mainly comes from processes such as pre-cleaning etching developing strip- keeps the workshop enclosed. At the same time the Company conducts regular maintenance and upkeep of the equipment
ping pre-printing cleaning liquid crystal cleaning and post-cleaning. The Company has built a wastewater treatment station to ensure it is in optimal operating condition avoiding abnormal noise due to equipment failure. The Company’s boundary
with a treatment capacity of 30.00 t/d. The wastewater is collected through pipelines and treated using methods such as noise is tested once a year by a qualified third party and the results are always controlled within the standard range meet-
Fenton anaerobic aerobic and sedimentation. After treatment the wastewater meets the first-level standard of the second ing relevant requirements and effectively reducing the impact on the surrounding environment and residents’ lives.phase of the Guangdong Province Water Pollutant Discharge Limits (DB44/26-2001) and is discharged into the municipal pipe
network to the water purification plant with some being reused in production. Ganzhou AVD has built a wastewater treat-
ment station with a treatment capacity of 650.00 t/d. The wastewater meets local wastewater treatment requirements after
treatment.In addition the Company has added COD automatic monitors at the front and middle sections of the wastewater system to
control the concentration of incoming water quality. An automatic online monitoring system is installed at the comprehensive
wastewater discharge outlet with a 100.00% compliance rate for main monitoring factors throughout the year and a 99.00%
effective data upload rate. Other general monitoring factors are sampled on-site monthly by qualified third parties and the
test results are all up to standard.Indicator Unit 2023 2024
Wastewater Treatment Volume Ton 135739.00 201955.00
tons/RMB
astewater Treatment Intensity 1.36 1.86
10000
48 49Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Resource Management
Waste Management Resources and energy are important material foundations for national economic and social development. AVD strictly ad-
heres to the Energy Conservation Law of the People’s Republic of China and the Water Law of the People’s Republic of China
and other national and local laws and regulations taking practical actions to implement the concept of green development.AVD continuously standardizes the waste management process clarifies the responsibilities of the generating unit utilizing
unit and disposal unit and reduces environmental risks. The general solid waste generated by the Company in the produc-
tion and operation process mainly includes waste paper waste plastic waste glass waste electronic materials etc.; hazard-
ous waste mainly includes waste cutting fluid waste alkali liquid waste cleaning agent waste engine oil waste rags online
testing waste liquid waste sludge waste activated carbon etc. Hazardous waste is collected in the hazardous waste tempo- Resource Management System
rary storage area and measures such as windproof rainproof sunproof anti-loss and anti-leakage are taken. After unified
collection it is regularly transferred and disposed of by qualified institutions.GovernanceIndicator Unit 2023 2024 AVD firmly establishes and practices the concept that “lucidwaters and lush mountains are invaluable assets.” Based
on the ISO50001 standard a sound energy management
General Waste Generation Volume Ton 205.00 371.96 system is established and documents such as the Energy
Operation Control Procedure are formulated to manage the
General Waste Disposal Volume Ton 251.00 371.96 resources and energy used by the Company. The Company
has an energy management organization group with the
production management responsible person as the group
Hazardous Waste Generation Volume Ton 69.07 111.06 leader and personnel from various departments as group
members mainly responsible for energy consumption quota
Hazardous Waste Disposal Volume Ton 69.64 111.33 control daily statistics and analysis work. At the same time the Company has an energy consumption statistics specialist
to statistically analyze the Company’s energy consumption. AVD Energy Ganzhou AVD Energy Management System Management System
The main energy used by the Company is electricity (includ- Certification Certificate Certification Certificate
ing photovoltaic power generation) and the water resources
Waste Entrustment Processing: used mainly come from municipal water supply. As of the
end of the reporting period the Company has passed the
ISO50001 energy management system certification.◎ The Administrative Department is responsible for the external disposal of general waste: developing and se-
lecting qualified institutions for recycling and disposal.◎ The Environmental Protection Office of the Safety Committee is responsible for the external disposal of Strategy
hazardous waste: developing and selecting qualified institutions for recycling and disposal. Hazardous waste To further achieve safe healthy and green development the Company analyzes the energy structure used contin-
treatment suppliers must have relevant business licenses issued by the government authorities and need to uously promotes energy management optimization through risk and opportunity identification and assessment and
sign formal hazardous waste treatment agreements with them. reduces energy consumption and energy usage risks.Type of Risk/ Description of Risk/ Likelihood of Impact Expected Financial Countermeasures
Waste Reduction and Recycling: Opportunity Opportunity Occurrence Duration Impact
1. Strengthen energy manage-
ment and set reasonable ener-
◎ The Environmental Protection Office of the Safety Committee and the Administrative Department are re- gy consumption targets.2. Optimize energy use struc-
sponsible for monitoring the quantity of various types of waste each month. When a significant increase in Tran- Market As energy prices rise sition the Company need to Medium Short Term Costs increase ture and continuously promote
waste emissions is detected timely feedback is provided to the responsible departments which are then Risks Risks pay higher energy costs. profits decrease photovoltaic power generation.responsible for taking targeted management measures or recycling measures to reduce waste emissions. 3. Analyze the rationality of energy consumption promptly
◎ General waste can be recycled and processed by recycling companies. When selecting a waste recycling identify and improve abnormal
company it is necessary to verify its business qualifications. energy usage.◎ Hazardous waste can be treated using internal sewage treatment facilities or by adding other equipment With the country ’s
and facilities. The economic feasibility and operability should be evaluated and internal digestion treatment emphasis on sustain- 1.Continuously optimize produc-
measures and methods should be established to reduce external disposal. Techno- ab le deve lopment
tion processes.Op- companies can adopt 2. Carry out energy manage-
◎ For hazardous waste that has established cooperative suppliers and can be recycled (such as empty chem- portu- logical advanced production High Short to Long Cost reduction ment.Center construction cen-
ical barrels waste oil etc.) it is necessary to clearly agree on recycling requirements with the suppliers to nities Oppor- technologies and equip- Term tral air conditioning intelligent tunities control system construction and
ensure that the entire recycling process complies with relevant laws regulations normative documents and ment to reduce energy consumption and im- other technical energy-saving
company requirements for hazardous waste management. prove energy efficiency. projects.
50 51Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Impact Risk and Opportunity Management ◎ Power-saving of air conditioning system: By increasing the temperature of water freezers
The Company regularly organizes factories to conduct energy reviews formulate the Energy Review Control Proce- at stages using fixed frequency and differential pressure frequency conversion for air Energy-saving
dure conditioning cabinets and other methods to save energy and reduce electricity usage. and use methods and tools such as direct measurement on-site investigation energy balance energy audit Technical ◎ Power-saving of compressed air system: By using “0” gas consumption adsorption dryers
energy efficiency benchmarking energy-saving monitoring and statistical model analysis to conduct energy reviews Transformation adding end buffer tanks to stabilize air supply pressure and regularly (quarterly) checking
identify the current use and management status of energy in the Company and improvement opportunities and use for air leaks in the air compressor system pipelines and other measures to save electricity.methods such as yes-no judgment comparative analysis and scoring to evaluate and rank the identified major en-
ergy performance improvement projects and determine priority energy performance improvement projects. At the
same time the Company formulates documents such as the Energy Operation Control Procedure and the Energy
Monitoring and Measurement Management Procedure to standardize daily energy use management formulate en-
ergy use standards and energy goals conduct daily weekly monthly and annual energy consumption statistics and Documentation
management and promptly follow up on the use status and goal achievement of energy. Related ◎ Collect relevant measured data to form documents for subsequent parameter settings
to Energy corresponding to ambient temperature regularly check and improve the situation of run-
Conservation ning leaking dripping and leaking in various areas.Indicators and Goals
AVD combines the actual situation of the Company to formulate energy goals and detailed energy management im-
plementation plans to continuously improve the Company’s energy efficiency management level.◎ Collect energy consumption in various areas of the entire factory to monitor whether
Energy Daily there are abnormal fluctuations.Energy 2024 ◎ Conduct irregular inspections of various areas of the factory every week and promptly re-
Consumption Unit Performance 2024 Target Achievement 2025 Target
Inspection
and Audit port problems to the energy-saving and consumption-reducing working group.Parameters Management ◎ Organize relevant departments to hold energy-saving and consumption-reduction meet-ings.kgce/pcs ◎ Promote and train energy-saving awareness and post energy-saving labels.Comprehensive energy
consumption per unit of ≤0.160 0.150 ≤0.145
production kgce/pcs
Company
Comprehensive energy
consumption per unit of
output value kgce/RMB ≤24.50 24.17 23.37 Case Photovoltaic Power Generation
10000
kgce/set
Comprehensive energy 1.83 1.668 1.618 The Company has built rooftop photovoltaic power consumption per unit of ≤ generation equipment to increase the use of clean
production kgce/set
Ganzhou AVD energy and further reduce carbon emissions. In
Comprehensive energy 2024 the Company used 243200 kWh of solar
consumption per unit of photovoltaic power generation.output value kgce/RMB ≤155 162 158
10000
Energy Utilization Indicator4 Unit 2023 2024
10000
Total Electricity Consumption of Factories 2999.13 3419.10
The Company actively responds to the national “carbon peak” and “carbon neutrality” requirements deepens kWh
green operations and vigorously promotes the use of clean energy to further reduce greenhouse gas emissions.The Company attaches great importance to energy conservation and emission reduction work and carries out Total Electricity Consumption of Large-scale 10000 2687.67 2642.05
energy-saving and consumption-reducing activities. During the reporting period the Company conducted ener- Manufacturing kWh
gy-saving diagnoses collected statistical data such as ledgers reports and on-site records that reflect the en-
ergy consumption status of each link in the Company’s production identified problems and weak links analyzed
and compared to tap energy-saving potential sought energy-saving directions reduced energy consumption and The electricity consumption of factories includes that of large-scale manufacturing. The consolidated standard for electricity consumption
production costs and improved economic benefits. includes Shenzhen AVD (the disclosure scope of Shenzhen AVD is its Shenzhen headquarters and factory) Ganzhou AVD and Ruidisheng.
52 53Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Water Resource Utilization Circular Economy
AVD strictly adheres to relevant laws and regulations such as the Water Law of the People’s Republic of China continuously AVD has formulated the Green Ecological Design Rules implementing the concept of circular economy from three as-
promoting comprehensive control of water resources. The equipment department inspects various equipment and facilities pects: product design packaging design and material selection. The Company continuously strengthens the recycling
daily promptly repairs any equipment or facilities with leaks and strictly prevents water resource waste. We implement management of waste promotes the resource utilization of waste thereby promoting the sustainable development
scientific water use improve the water metering system analyze and compare monthly water consumption and deeply of the environment and society and improving the level of ecological civilization.explore water-saving potential. During the reporting period the Company carried out water resource energy-saving and con-
sumption-reduction work. The tap water usage in the production line decreased by 22.86% compared to 2023 the reclaimed
water usage increased by 7900 tons compared to 2023 and the recycling efficiency of reclaimed water increased by 8.85%
compared to 2023.Product ◎ When selecting structural and electronic designs fully consider requirements such as low
Design power consumption high precision durability minimal material use easy assembly and
◎ Collect and classify the rinse water discharged from the workshop for treatment im- easy disassembly.Water-saving prove the recycling efficiency of reclaimed water and reduce tap water usage.◎ Collect and treat the concentrated water produced by pure water equipment for recy-Measures cling reducing tap water usage.◎ Improve the reuse efficiency of the reclaimed water reverse osmosis system.◎ Reduce packaging weight and volume improve utilization.Water-saving Packaging ◎ Optimize packaging methods to reduce the use of disposable packaging materials.Achievements ◎ Reclaimed water recovery efficiency 72.36%.Design ◎ Prioritize the use of recyclable materials for packaging.◎ Recycle and reuse packaging materials multiple times to reduce waste generation.Indicator Unit 2023 2024
◎ Material selection complies with environmental requirements such as ROHS REACH and
Industrial Water Consumption Cubic Meters 318918.00 397783.00
Material halogen-free control.Selection ◎ Prioritize the use of recyclable materials for raw materials.Fire-fighting Water Consumption Cubic Meters 104.00 68.00 ◎ Reduce the use of virgin plastic packaging and use biodegradable materials for packag-
ing as much as possible.Recycled Water Consumption Cubic Meters 47842.00 47864.00
Domestic Water Consumption Cubic Meters 117908.00 139241.00
Total Water Consumption Cubic Meters 436930.00 523451.00 Green Office
AVD actively promotes green culture construction persistently advocates for employees to fulfill green workplace be-
haviors formulates the Office Management Guidelines clarifies green office-related requirements guides all employ-
ees to comprehensively and deeply practice green office concepts and green lifestyles fosters a good atmosphere of
energy conservation rational consumption and green healthy living and contributes to building a green home.Water Electricity Paper
Conservation Conservation Conservation Waste Sorting
◎ Tu r n o f f f a u c e t s ◎Encourage employees ◎ Promote paperless of- ◎ Implement waste sort-
p rompt ly to avo id to save electricity and fice practices. ing and recycling to
long-running water. set air conditioning to ◎ Advocate for dou- reduce environmental
◎ Post water -sav ing no lower than 26 de- ble-sided printing to pollution.s igns and promote grees Celsius. reduce paper use and
water -sav ing con- ◎Remind employees to unnecessary paper
cepts. turn off lights and oth- waste.er office equipment
when leaving work-
places and meeting
rooms.
54 55Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
56 57Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Innovation as the Driver
AVD continuously improves the R&D innovation system grounding technological innovation in cutting-edge applica- Strategy
tion technologies that align with policy development directions industry characteristics market demands and the
Company’s resource status driving future development through technological innovation. AVD identifies and evaluates risk factors in the business process taking effective measures to reduce the impact of
risks. At the same time the Company actively seizes market opportunities develops competitive new products and
ensures that products are highly aligned with customer needs.Innovation Management System
Type of Risk/ Description of Likelihood of Impact Expected Fi-
Opportunity Risk/Opportunity Occurrence Duration nancial Impact Countermeasures
In recent years the domestic Actively promote the tech-
Governance touch display industry has nological update iteration
developed rapidly and the and structural improvement
competition is relatively in- of existing products while AVD has established systems such as the New Project Development Operation Guidelines and the Advanced Product
tense. At the same time with following industry trends Quality Planning (APQP) Control Procedures to standardize the project development process from project initiation Short and market demands to
design sample to trial production. The Company continuously improves the R&D innovation system clarifies innova- Market the rapid growth of demand Market share Com- in the downstream industries Medi- decreases launch new products and
tion management departments and actively carries out the improvement of existing products and the development petition of the touch display indus- Medium um and and revenue technologies accelerating
of new products in various business units striving to achieve product leadership through technological innovation. Risks try the application fields of Long the Company’s transforma-
products are continuously Term
declines tion from a touch display
expanding and customers product supplier to a com-
have put forward higher prehensive solution provider
requirements for technology for human-machine inter-
Touch Control Products Department Risk and product performance. faces and intelligent control products.Pay attention to the de-
Project Team Electronics Team Structural Innovation Team R&D Team Risk of If the Company cannot de-
Techno- velop new products through velopment trends of the
logical technological innovation and Short Market display and touch product
Product other means and cannot Medi- share market be market-orient-
AVD Touch Display Product Department Organizational Structure Devel- meet customers’ customized Medium um and decreases ed adjust the Company’s
opment needs the Company may Long and revenue R&D direction and goals in
and face risks of losing techno- Term declines a timely manner and en-
Innova- logical advantages and prod- sure the synchronization
Innovation is the primary driving force talent is the primary resource. The Company continuously strengthens the tion uct substitution. of product development
construction of the R&D team values the cultivation of core technical teams increases the introduction of high-end with market demands.technical talents and ensures the continuous growth and long-term stability of core technical personnel. During the
reporting period the Company’s R&D team consisted of 261 people accounting for 11.45% of the total staff. 1. Actively introduce high-
end technical talents
strengthen the R&D team
Techno- The rapid development of
building and enhance the
51.72%42.53%34.48%21.46%
logical new technologies in industry
Short strategic planning manage-
Oppor- application fields brings new High
Medium Revenue ment of technology R&D.tunities industry opportunities to the
and Long Increase 2. Continuously increase
By Company. Term R&D investment deeply
Educational By explore cutting-edge tech-
Background Age Group Opportunities（People） （People）
nologies and maintain the
advancement of core key
technologies.
0.77% 4.98% 44.06% Product With the popularization of Short
and sustainable development Medi- Increase the development
Service concepts customers’ de- High um and Revenue of green and low-carbon
Bachelor’s Degree Master’s Degree Under 30 years old 30-40 years old Oppor- mand for green and low-car- Long Increase products.tunities bon products has increased. Term
Doctoral Degree College Degree and Below 40 years old or above
58 59Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Impact Risk and Opportunity Management In design practice the Company’s R&D team has accumulated core technologies such as ARM control boards indus-
trial computers industrial displays intelligent serial port display modules multi-platform embedded control systems
AVD actively collects risk management information from both internal and external operating environments identifies industrial IoT human-machine interface systems electronic paper materials and display modules special opticaland evaluates the risks and opportunities faced by the Company through SWOT（Strengths，Weaknesses，Opportu- touch display modules high-performance touch display modules reflective TFT LCD display modules with front lightnities，Threats） analysis and takes timely response measures to control them. The Company continuously improves high-performance PMVA-LCD fast-response liquid crystal light valves automotive anti-glare liquid crystal light valvesits innovation management system based on the changing market environment and technological development con- automotive automatic dimming sunshade liquid crystal light valves high-reliability electric meters industrial control
stantly adjusts its management model and strives to survive in competition seek development in changes and cre- LCDs and many more. At the same time through extensive production practice the Company has accumulated rich
ate benefits in operations. experience in many production processes such as COG/FOG bonding optical lamination SMT glass cutting plasma cleaning etching corrosion liquid crystal filling cell assembly static elimination etc. maintaining a high technical
level and yield rate. During the reporting period the Company carried out projects such as the development of in-ve-
Indicators and Goals hicle curved touch display module lamination technology in-vehicle high-contrast touch and display driver integrated
display touch module product development anti-noise liquid crystal module project research anti-static LCD project
Technology innovation serves as the cornerstone of our Company’s core competitiveness and market leadership. We will research etc. to help achieve product diversification and enhance the Company’s competitiveness.continue to intensify R&D investments to drive iterative upgrades of existing products optimize current technologies
and accelerate next-generation technology development ensuring our offerings remain highly responsive to market de-
mands while strengthening customer loyalty. Through close monitoring of industry trends and in-depth market research Key Performance:
we actively explore cutting-edge technologies while reinforcing forward-looking technology roadmaps and product
development initiatives – all aimed at achieving product leadership through technological breakthroughs. Meanwhile By the end of the reporting period the Company has accumulated 156 patents including 21 invention
we are committed to building a world-class R&D workforce by prioritizing the development of core technical teams and
recruiting top-tier talent thereby ensuring the sustained growth and long-term stability of our key technical personnel. patents 132 utility model patents and 3 design patents; we has obtained 17 computer software
copyrights 24 trademarks and published 3 papers.Indicator Unit 2023 2024
Investment in R&D 10000 Yuan 6426.01 8037.32
Proportion of Total R&D Investment to Operating Revenue % 6.46 7.41
R&D Innovation Initiatives and Achievements
Stimulating Innovation Vitality
To standardize the performance evaluation system for the technical department personnel and motivate them to ex-
ceed the annual business tasks the Company formulated the 2024 Design In Incentive Plan established and improved
the technological innovation incentive mechanism and clarified the academic achievements objects conditions stand-
ards and implementation rules that need to be rewarded. The evaluation and issuance of academic achievement re-
wards are carried out in accordance with the principles of openness fairness and justice. Collectives and individuals
who have made outstanding contributions to promoting technological progress and academic research are rewarded to
stimulate employees’ enthusiasm for innovation and enhance the Company’s innovation level.Innovation Achievements
AVD always adheres to serving customers as the core and promotes industrial upgrading optimizes the industrial
structure and brings high-quality display products to various industries. As a national high-tech enterprise the Com-
pany has already obtained multiple invention patents and utility model patents and possesses advanced production
equipment diversified product lines and intelligent testing equipment which can provide customers with customized
touch display overall solutions.
60 61Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Enhancing Innovation Capability
AVD insists on cultivating an innovative culture and actively creates a good atmosphere that encourages bold
innovation dares to innovate and tolerates innovation. The Company regularly conducts professional training to Case Shanghai Munich Electronics Exhibition
stimulate employees’ innovative thinking improve their professional skills and comprehensive quality and enhance
their problem-solving abilities so as to better respond to market changes and customer needs ensuring the
Company’s sustainable business development . In July 2024 AVD participated in the Shanghai Munich Electronics Exhibition. This exhibition marked
the first public display of the Company’s e-paper products in China. The Company’s e-paper products
mainly include e-paper segment modules and dot matrix modules which can be widely used in retail
smart office medical transportation education and industrial fields. They feature energy-saving and
emission-reduction properties and visual-friendly characteristics making them one of the solutions
for the “dual carbon”goals.AVD Product-related Professional Training
Promoting Industry Development
AVD continuously strengthens technical exchanges and cooperation at home and abroad keeps pace with the
development of the global display industry builds a high-level open innovation ecosystem and effectively promotes
the coordinated development of the industrial chain.Case 2024 Display Week Exhibition in the United States Case Munich Exhibition Germany
In May 2024 AVD participated in the 2024 Display Week Exhibition in the United States. The Com- In November 2024 AVD participated in the electronica Munich trade fair held at Messe München. Our
pany’s exhibition staff provided detailed explanations to the visitors about the Company’s exhibited technical team provided detailed presentations to attendees about the showcased display technolo-
wide-temperature wide-view IPS-TFT AMOLED products and technologies. gies including In-cell TFT PMVA-LCD and e-paper solutions.
62 63Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Supply Chain Management
Intellectual Property Protection
AVD continuously enhances its supply chain management by establishing a rigorous multi-dimensional supplier
evaluation system to select qualified partners. Through ongoing monitoring and improvement initiatives the Company
strengthens supply chain stability while driving green transformation across the entire value chain setting exemplaryAVD adheres to the intellectual property management policy of “Respecting Intellectual Property Creating Intellectual standards for the industry.Property Protecting Intellectual Property and Leading Development Through Technological Innovation.” The Company
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. It focuses on
building an intellectual property protection system to safeguard its own business intellectual property while avoiding Supply Chain Management System
infringement of others’ intellectual property.Intellectual Property Protection
Mechanism Governance
AVD has formulated and implemented documents such AVD has implemented comprehensive regulatory frameworks including the Procurement Control Procedures and Sup-
as the Intellectual Property Acquisition Control Proce- plier Evaluation & Control Procedures to standardize procurement operations and supplier management processes
dures Intellectual Property Dispute Handling Control ensuring the selection of suppliers capable of consistently delivering high-quality cost-competitive materials prod-
Procedures Intellectual Property Maintenance and Appli- ucts and services that comply with HSF (Hazardous Substance Free) regulations. The Company stipulates that the
cation Control Procedures and Intellectual Property Risk Procurement Center is responsible for supplier qualification and raw material procurement activities. It also stipulates
Management Control Procedures establishing a scientific the Technical Process Engineering Equipment and Quality Control Departments are responsible for verifying compli-
and standardized intellectual property management ance with the Company’s ethical environmental safety and quality standards. At the same time to drive continuous
system. The Company’s Technology Center is the desig- supply chain optimization the Company has established measurable supply chain ESG objectives and implemented
nated department for managing patents copyrights and functional performance evaluations for the Procurement Center.trademarks. It is responsible for managing and evaluat-
ing patents copyrights and trademarks and for review-
ing and controlling changes transfers abandonments Conduct multi-stage assessments including initial supplier selection supplier investigation
and licensing of patents copyrights and trademarks. Intellectual Property Manage- AEO Advanced Cer- Access supplier qualification confirmation sample management and supplier evaluation to ensure
The Company is a national high-tech enterprise and an ment System Certification tification Enterprise that the products and services provided by suppliers meet the Company’s requirements.AEO (Authorized Economic Operator) advanced certifica-
tion enterprise by China Customs. It has passed the GB/
T29490-2023 intellectual property management system its awareness of intellectual property risks. Based on the Based on the performance of suppliers in terms of qualifications delivery capabilities integrity
certification and has developed a core technology and manifestations and causes of intellectual property risks etc. and combined with the Company’s business planning and strategic goals suppliers are
product system with independent intellectual property in the enterprise the Company takes targeted measures Assessment scored and selected. Every six months the Company organizes the quality and technical de-
rights. In addition the Company continuously strengthens to enhance intellectual property risk control. and Evalua- partments to conduct semi-annual comprehensive performance rating evaluations of suppliers
tion of materials from the first to the fourth categories and formulates an annual supplier audit plan
based on a 5-year full coverage approach implementing survival of the fittest to promote con-
Non-Infringement of Others’ Intellectual Property tinuous improvement of suppliers at all levels while ensuring fair and just evaluations.In the course of its business activities AVD uses genuine software and equipment for research and development The Company provides guidance and follow-up for the improvement of specially
clearly defining the procurement process for production equipment and software to avoid infringing on others’ intel-
Elimination approved unqualified and C-level suppliers to avoid direct elimination. After lectual property. At the same time the Company has established a domestic and international intellectual property improvement guidance and follow-up suppliers that are still deemed unable to meet the
tracking and retrieval mechanism for the research and development process. We regularly retrieve the progress of Company’s requirements upon re-evaluation are disabled.domestic and international technologies and the status of intellectual property applications for R&D projects conduct
avoidance designs and avoid redundant research and development.Key Performance:
Protection of Its Own Intellectual Property During the reporting period AVD collaborated with a total of 322 suppliers spread across the country.The Company attaches great importance to the protection of its intellectual property rights implements the requirements Among them there were 148 suppliers in Shenzhen accounting for 68.52% of localized procure-
of laws and regulations such as the Patent Law of the People’s Republic of China and the Trademark Law of the People’s
Republic of China and safeguards its legitimate rights and interests through patent applications trademark registrations ment; 9 suppliers in Ganzhou accounting for 5.66% of localized procurement.litigation and rights protection etc. thereby preventing the infringement of R&D achievements by others.
6465
Supplier Management ProcessContents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Strategy Indicators and Goals
Supply chain risks arise from factors such as supplier instability logistics delays and market demand fluctuations. AVD has established a scientific supply chain management index system comprehensively controlling each link
To ensure the smooth operation of the supply chain AVD identifies and assesses related risks while exploring more continuously optimizing processes and effectively improving operational efficiency and market competitiveness
possibilities for optimizing supply chain management.Supplier Review
Type of Risk/Opportunity Description of Risk/ Likelihood of Impact Expected Fi-Opportunity Occurrence Duration nancial Impact Countermeasures
Key Indicators Unit 2024
The electronics indus- 1.Establish a diversified
try is highly dependent supplier system to reduce
on the global supply reliance on a single supplier. Number of suppliers with quality management system certification items 161
chain and any disrup- Sales 2.Track the progress of pro-
Risk Supply Chain tion in supply such as Low Short revenue curement materials com- Number of suppliers with environmental management system certification items 87Disruption raw material shortag- Term
es transportation de- decreased
municate in real time about
anomalies (delays cancella-
lays or supplier bank- tions changes) that affect Number of suppliers with occupational health and safety management system certification items 26
ruptcy may lead to delivery and adjust plans in
production stagnation. a timely manner. Number of suppliers terminated due to non-compliance items 0
Strengthen collabo- Number of potential suppliers rejected due to non-compliance items 0
ration with suppliers Improve
customers and logis- Medium man- Continuously promote sup-
Opportunity Supply Chain tics service providers and agement plier ESG management and Collaboration to achieve information High Long efficiency build a sustainable respon-
sharing resource opti- Term and increase sibility chain.mization and mutual revenue Supplier ESG Management
benefits.In terms of supplier ESG management AVD always adheres to high standards. The Company gradually incorporates
environmental social and governance factors into the supplier evaluation system prioritizing suppliers that excel
Impact Risk and Opportunity Management in energy conservation labor rights protection and ethical operations At the same time we actively promote
information sharing and exchange in the supply chain regularly organize training share ESG practical experiences
AVD actively identifies and evaluates potential risks and opportunities in supply chain management establishing a enhance partners’ ESG awareness and work with suppliers to practice sustainable development concepts creating
risk management mechanism to ensure the stability and efficient operation of the supply chain. greater value for society and the environment.Management Process Management Measures
Case AVD Conducts Supplier Sustainability Training
Risk Identification Identify and collect information on potential risks of qualified suppliers including supplier information and raw material sources
In July 2024 to enhance suppliers’ aware-
ness of social responsibility and supply
Risk Assessment Use qualitative and quantitative methods to comprehensively assess risks in the supply chain chain sustainability the Company organ-
ized sustainability training for all suppli-
ers. The training content included social
Strengthen supply chain monitoring adopt advanced technologies to responsibility integrity and transparent
Risk Monitoring improve supply chain response and information update speed and cooperation environmental supply chain
provide timely feedback on different situations sustainability and conflict minerals.Risk Management Establish backup suppliers to reduce reliance on a single supplier; closely cooperate with existing suppliers to enhance cooperation stability Supplier Sustainability Training
66 67Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Product and Service Safety and Quality
Responsible Procurement
AVD follows the quality policy of “Customer First Quality Foremost Innovation-Driven and Continuous Excellence”
firmly believing that excellent products and services are the foundation of the enterprise. The Company continuously
improves and optimizes the existing quality management system while focusing on the construction of customer
AVD consistently adheres to the concept of sustainability throughout the entire procurement management process.The Company has formulated the Supplier Codes of Conduct service management systems deeply understanding and meeting the diverse needs and expectations of different emphasizing various elements such as environmental customers and continuously enhancing customer experience.protection anti-discrimination health and safety labor wages and compensation and business integrity establishingcorresponding sustainable procurement processes and capabilities. At the same time based on the values of“ Integrityand Win-win” the Company achieves resource sharing and deep cooperation with various supplier partners in terms
of quality delivery and cost jointly building a symbiotic and win-win ecosystem. Quality Assurance System
Integrity Procurement
To strengthen transparent cooperation with suppliers and advocate for supplier integrity governance the Company
through mutual agreement signed the Supplier Codes of Conduct containing integrity and transparent cooperation Governance
content. The Company is committed to respecting the cooperative interests of suppliers under the principles oflegality legitimacy and mutual benefit and firmly opposes any unit or individual from using inappropriate means to AVD consistently upholds its quality policy of “Customer First Quality Foremost Innovation-Driven and Continuousinduce or promise Company employees for the benefit of AVD. Company employees must not solicit or accept cash Excellence.” To ensure products meet customer quality requirements the Company strictly complies with the Product
gifts securities payment vouchers shopping cards gifts tobacco and alcohol valuable items rebates benefits Quality Law of the People’s Republic of China and other relevant regulations. We have established comprehensive quality
Token of Appreciation intermediary fees commissions (remuneration) etc. in any form. Company employees must assurance documents including the Advanced Product Quality Planning (APQP) Control Procedures Product Design and
not accept any form of commercial bribery from suppliers or through third parties. Development Control Procedures and Product Monitoring and Measurement Control Procedures to implement full-process
quality control. At the same time the Company has established a Quality Center responsible for building the quality
management system and ensuring product quality. AVD has obtained multiple international quality management system
Smart Procurement certifications including ISO 9001:2015 IATF 16949:2016 and ANSI/ESD S20.20:2021. Both our subsidiaries Ganzhou AVD and Ruidisheng have also achieved ISO 9001:2015 quality management system certification. This integrated approach
demonstrates our unwavering commitment to delivering superior quality products and services.AVD is committed to improving procurement efficiency and transparency through digital and intelligent
means. The Company continuously optimizes a series of information systems such as OA SAP ERP and MES
coordinating production activities across departments optimizing procurement processes and ensuring the
efficiency and accuracy of raw material procurement. In addition we have enhanced the transparency and Quality Center
sustainability of the supply chain laying a solid foundation for the Company’s long-term development.Conflict Minerals Touch Display Systems Supplier Quality Ganzhou Quality Department Product Quality Assurance AVD Quality Department Department Department Department
AVD adheres to responsible mineral sourcing practices ensuring all products comply with the Conflict-Free
Sourcing Initiative (CFSI) by verifying that materials originate from sources aligned with the Organization for Quality Center Organizational Chart
Economic Co-operation and Development (OECD) Due Diligence Guidance for Responsible Supply Chains of
Minerals from Conflict-Affected and High-Risk Areas or equivalent internationally recognized frameworks. The
Company guarantees that tantalum tin tungsten and gold used in manufacturing are neither directly nor
indirectly procured from the Democratic Republic of the Congo (DRC) or its adjacent regions.AVD Ganzhou AVD AVD IATF 16949:2016 AVD ANSI/ESD S20.20:2021
Ruidisheng ISO 9001:2015Certificate Certificate Certificate
68 69Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Strategy
AVD identifies and evaluates risks and opportunities based on internal/external factors and stakeholder expectations/ The identified risks shall be evaluated in accordance with the relevant
requirements formulates corresponding response measures and continuously improves product quality. provisions of the assessment criteria with separate evaluations
conducted for severity occurrence frequency and detectability. Based
Type of Risk/Opportunity Description of Risk/ Likelihood of Impact Expected Finan-
on the evaluation results the risk coefficient shall be determined and
Opportunity Occurrence Duration cial Impact Countermeasures corresponding measures shall be implemented according to the risk
Risk Assessment coefficient.During the production
process issues such as
raw material problems
improper production Damage
Strengthen raw material
Product Short and to brand inspection optimize pro- Each implementation department should assess the identified risks and
Risk Quality techniques or lax qual-ity control may lead to High Medium reputation
duction processes improve take reasonable response measures based on the assessment results to
Issue the quality management substandard product Term decline in sales revenue. system and conduct regu-
achieve the goal of reducing or eliminating risks. Risk response methods
quality affecting cus- lar product quality testing. include risk acceptance which is suitable for risks that cause small losses
tomer experience and and have high repeatability; risk reduction which involves taking measures
brand image. to reduce the damage or loss caused by potential risks; risk avoidance
Risk Response which eliminates risks or the conditions for risk occurrence through planned
changes protecting the target from the impact of risks.The Company continues
to advance intelligent
and digital transforma-
tion utilizing big data Increase R&D investment Intelli- artificial intelligence Short i n t r o d u c e a d v a n c e d gent and Cost decrease technology improve the The risk and opportunity review should be conducted at least once a year
Opportunity Digital and other technologi- High Medium and income quality management sys- and its effectiveness should be verified. After the risk and opportunity
Transfor- cal means to optimize and Long increase. tem strengthen quality review is completed documents such as the risk and opportunity analysis
mation production processes Termcontinuously improve inspection and after-sales and evaluation table residual risk analysis and improvement measures/
product quality and per- service. Risk and Oppor- plans should be formed.formance and enhance tunity Review
customer satisfaction.Impact Risk and Opportunity Management Indicators and Goals
The Company has formulated the Guidelines for Risk and Opportunity Response Measures Control to continuously im- The Company has established clear and feasible quality and service goals to improve the Company’s quality and ser-
prove the risk and opportunity management processes for products and services. vice management system.Indicator Target Content Achievement Status
Identification of risks and opportunities related to system certification shall On-time Delivery Rate ≥ 90.00% Achieved
be organized by the System Department with participation from all relevant
departments. Product Shipment Qualification Rate ≥ 97.00% Achieved
Risk and Opportu-
nity Identification
Customer Satisfaction ≥ 90.00 points Achieved
70 71Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Hazardous Substance Management
Product Quality Management Measures
To standardize the Company’s hazardous substance management AVD has established the Restricted Hazardous
Substances List and the HSF Product Testing Operation Guidelines which conduct hazardous substance testing on all
materials tooling fixtures semi-finished products and finished products during the Company’s production process
and strictly control them. During the reporting period the Company obtained certification for the hazardous sub-
Full Life Cycle Management stance process management system (IECQ QC080000).AVD conducts full-cycle quality management from product development material supply production and market op-
erations adhering to the principle of quality first creating products that satisfy users and laying the foundation for
the Company’s sustainable development.Product Design and
Development After collecting market demands the Technical Department conducts feasibility
▽ analysis and controls the entire process of product and service.AVD IECQ QC080000 Certification Ganzhou AVD IECQ QC080000 Certification
Production Phase Follow the DFMEA Work Instructions and PFMEA Work Instructions for sample pro-duction and trial production. For products using new materials and processes the
▽ Company follows the Material Development Work Instructions . At the same time we conduct multi-dimensional product inspections during the production process to
ensure product quality meets audit standards and requirements. Quality Culture Construction
To improve the Company’s quality assurance capabilities and promote continuous improvement in product
Feedback During order execution the Quality Center organizes corrective actions for internal quality the Company promotes the zero-defect concept of “full participation doing it right the first time”.Evaluation abnormalities and customer feedback summarizes the corrective action process The Quality Center System Department guides all departments to actively participate through quality pro-
and updates relevant documents. The Quality Center and Sales Center need to motion quality activities specialized cultural training and specific theme improvements enhancing the
▽ summarize and analyze the achievement of customer goals and requirements an- quality awareness of all employees implementing “starting from me” and improving product quality.nually and promote continuous improvement.Non-conforming products found during self-inspection mutual inspection and sam-
Rework and Repair pling inspection in the production process or final inspection need to be identified Case 2024 Quality Month Activity
and isolated first. If determined to require rework/repair the reworked/repaired
▽ products need to be re-inspected. At the same time continuously improve employ-
ees’ ability to handle product rework/repair to reduce process loss shorten produc-
tion cycle time and control the quality of reworked products. In 2024 the Company launched the Quality Month activity with the theme “Establish Quality Aware-ness Foster Innovation Spirit Let’s Win with Quality”. The activities included co-creating quality
For the execution of the product recall process the Quality Center is responsible for boards a quality PONC analysis competition and quality speech activities. Each activity had rewards
Product Recall providing detailed information on the products that need to be recalled. The Sales for outstanding performers encouraging all employees to participate and actively focus on quality
Center issues the Product Recall Notice to customers follows up on the recall of improvement activities.▽ customers and end products and tracks the handling and final disposal of the re-
called products. At the same time the Quality Center needs to regularly summarize
and analyze product recall situations.Key Performance:
During the reporting period the Company’s product qualification rate was 98.25%. Group Photo at the Kick-off Meeting Quality PONC Analysis Competition Award Ceremony
72 73Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Protecting Customer Rights
Case Zero-Defect Quality Training
In October 2024 the Company conducted Customer Service Management
“Zero-Defect Quality Training”. The training
content included the four basic principles of
zero-defect process mode method explana- Customer service management is an important means of shaping the Company’s brand image and enhancing market
tion and quality PONC analysis calculation competitiveness. The Company has established a scientific and reasonable customer service management system
methods. An assessment was conducted formulated internal regulations such as the Customer Service Control Procedures Customer Service Operation Guide-
after the training based on the training con- lines and Sales Business Behavior Operation Guidelines and is committed to continuously improving the quality of
tent. A total of 33 employees participated in customer service. The Company’s customer service process can be divided into three stages: pre-sales in-sales and
this training with a pass rate of 100.00%. after-sales. Pre-sales work is completed by the business department including establishing files for new customers and entering customer information; in-sales work involves the participation of the business sales and R&D depart-
Zero-Defect Quality Training ments including establishing project information tables tracking order completion and communicating feedback with
customers; if there is a return of defective products after sales the customer service department will lead the rele-
vant departments to handle it providing customers with returns or repairs.Customer Complaint Response Mechanism
Case Continuous Improvement of the Process of Project Promotion
The Company always adheres to the principle of customer first establishing a comprehensive after-sales service
mechanism and formulating the Customer Complaint Handling Operation Guidelines . The Company implements hier-
The Company established a Continuous archical management for customer complaints. Based on the level of loss caused by the complaint and its impact on
Improvement Committee formulated the the Company’s reputation customer complaints are divided into general complaints major complaints and quality ac-
annual continuous improvement promotion cidents with multiple departments collaborating to handle customer complaint matters. At the same time the Com-
plan and decomposed it by department pany’s quality center regularly reviews customer complaint matters forms summary and analysis reports proposes
organized the Company’s daily continuous effective improvement measures and transforms these measures into standardized documents training relevant
improvement affairs and encouraged em- personnel to improve subsequent service quality and efficiency.ployees to actively participate in continuous
improvement activities. Continuous improve- Key Performance:
ment activities are divided into three major
types based on the scope of the object
project difficulty expected cycle and project During the reporting period there were 71 customer complaints and all 71 were resolved.expected benefits: proposal improvement
QCC and Six Sigma projects. During the
reporting period a total of 37 continuous im-
provement activity projects were promoted
including 3 Six Sigma 6 QCC and 28 propos- Customer SatisfactionContinuous lmprovement Project Review Site
al improvements. A total of 55600.00 yuan
was awarded to the members of the above The Company formulates the Customer Satisfaction Survey Operation Guidelines and conducts an annual customer
project groups and the assessed improve- satisfaction survey with the survey cycle covering the entire year. The satisfaction survey includes aspects such as
ment benefits were 3.4069 million yuan. product quality satisfaction after-sales service satisfaction and compliance with environmental requirements. The Customer Satisfaction Survey Form is distributed by the Customer Service Department based on the confirmed annual
list of customers participating in the satisfaction survey and is tracked and collected within one month after issuance
with a required recovery rate of no less than 80.00%.Key Performance: Key Performance:
During the reporting period the Company conducted 445 quality culture training sessions with During the reporting period the Company issued 73 customer satisfaction questionnaires with an effective
10694 participants and a total training duration of 18006.22 hours. recovery rate of 98.65% and a customer satisfaction rate of 92.63%.
74 75Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Data Security and Privacy Protection
AVD believes that good data security and privacy protection are the foundation of mutual trust and long-term coop-
eration between the Company and its partners customers and employees. AVD has established and continuously
improved its information security management system continuously enhancing data security protection capabilities
and comprehensively adhering to the safety bottom line. Case 2024 Network Information Security Awareness Training
Information Security Management System In June and November 2024 the Company conducted two information technology security training
sessions for employees from various departments. The training content was the 2024 network infor-
mation security awareness training mainly covering the necessity of security awareness training and
security protection recommendations for common scenarios. After the training there was an assess-
ment to test the learning outcomes with a pass rate of 100.00%.AVD strictly complies with laws and regulations such as the Cybersecurity Law of the People’s Republic of China the
Data Security Law of the People’s Republic of China and the Personal Information Protection Law of the People’s Re-
public of China and formulates the Information Security Incident Control Operation Guidelines and Confidentiality Sys-
tem Management Operation Guidelines based on actual conditions to ensure the stable operation of the Company’s
information systems and equipment. The Company has established an Information Technology Department respon-
sible for handling information security incidents and conducts functional assessments of the Information Technology
Department on a quarterly basis. In addition the Company has signed a Confidentiality Agreement with all employees
to ensure the security of the Company’s key information and safeguard its legitimate rights and interests.Key Performance:
During the reporting period the Company invested 7600217.00 yuan in data security and no
data security incidents or customer privacy breaches occurred.Information Technology Security Training
Information Security Control Measures
Information Security Risk Assessment
To comprehensively identify and address information security risks and opportunities in production and management
activities the Information Technology Department follows the Company’s Guidelines for Controlling Measures to Ad- Emergency Incident Management
dress Risks and Opportunities establishes identification and response methods confirms departmental risks and
based on the assessment results creates a risk and opportunity analysis and assessment table. Control measures
implemented for identified risks include conducting an annual information security risk assessment installing informa-
tion security management systems and security defense systems on Company computers etc. AVD has formulated emergency plans and response mechanisms such as the Network Security Emergency Plan Oper-
ation Guidelines establishing a scientific effective and rapid emergency response mechanism to ensure that meas-
Information Security Training ures can be quickly taken in emergency situations such as the discovery of information system abnormalities striving to reduce the loss and impact of incidents. The Company conducts irregular emergency drills annually to test the
effectiveness of emergency responses. In 2024 the Company conducted information technology emergency drills in
The Company emphasizes daily assessment of the information security management system and the enhancement June and December with the drill content being database server recovery. The drill results were evaluated after the
of all employees’ security awareness. It conducts periodic promotional training on information security and confi- drills were completed. The two drills enhanced employees’ ability to handle emergencies accumulated experience for
dentiality systems to continuously improve employees’ confidentiality awareness and basic knowledge and skills in accident handling and achieved the expected drill results.information security. During the reporting period the Company conducted 3 information technology security training
sessions with 100 employees participating.
76 77Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
78 79Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Occupational Health and Safety
The first
personin charge Huang ZhiyiAV-Display Co. Ltd. consistently upholds the principle of “Safety First Prevention as Priority; Responsibility Implemen- (Legal Representative)tation Safety Assurance; Compliance with Regulations Enhanced Management; Environment Improvement HealthProtection” as its occupational health and safety policy. The Company is committed to eliminating major safety haz-
ards at the source thereby ensuring a secure operational environment for sustained business continuity. The primary person in charge
(General Manager) Chen Wenjian
Occupational Health and Safety Management System Actual person in charge (Director of the Safety Production Committee) Zheng Rong
Safety Production Leading Group
Governance
The Company strictly complies with national laws and regulations including the Work Safety Law of the People’s Re- Department Heads and All Employees
public of China and the Occupational Disease Prevention and Control Law of the People’s Republic of China. We have
established comprehensive occupational health and safety management documents such as the Occupational Health
Operation & Surveillance Control Procedures Hazard Identification and Risk Assessment Work Guidelines and Safety
Inspection and Accident Assessment Management Regulations forming a complete occupational health and safety AV-Display Co. Ltd. Work Safety Management Organizational Structure
management system to comprehensively safeguard employees’ health and safety. As of the end of the reporting
period both Shenzhen AV-Display Co. Ltd. and Ganzhou AV-Display Co. Ltd. have obtained ISO 45001 Occupational
Health and Safety Management System certification. Strategy
The Company identifies and evaluates potential hazardous factors in the production process promptly detects safety
risks in the workplace and implements appropriate corrective measures to minimize safety risks and safeguard em-
ployees’ lives.Type of Risk/Opportunity Description of Risk/ Likelihood of Impact Expected Opportunity Occurrence Duration Financial Impact Countermeasures
1. Conduct potential hazard
In case of occupational inspections and strengthen
health or work safety risk source control.incidents the business Increased 2. Develop emergency re-
Risk Operational of the Company may Low Short operational sponse plans and conduct Risk be disrupted requiring Term costs/fines regular drills.substantial capital in- 3. Implement occupational
vestment for incident health protection measures
resolution. and provide employees
with protective equipment.Shenzhen AV-Display Co. Ltd. ISO 45001 Occupational Ganzhou AV-Display Co. Ltd. ISO 45001 Occupational By implementing occu-
Health and Safety Management System Certification Health and Safety Management System Certification pational health manage-
ment the Company can Introduce more advanced
more effectively prevent Short production equipment im-Manage- Medi- prove process flows and
AV-Display Co. Ltd. has established a Safety Production Committee responsible for overseeing and leading the Com- Opportunies ment Effi- and control potential Reduced ex-
pany’s work safety operations supervising the implementation of major work safety decisions and deployments and ciency hazards in the work
High um and actively promote digital
environment improve Long
penses transformation to enhance
upholding fundamental work safety principles. The Company has developed a robust safety accountability system employee productivity Term enterprise management
that strengthens primary safety management responsibilities. We sign a Letter of Responsibility for safety production and avoid large-scale efficiency.periodically evaluate our adherence to safety production standards and perform comprehensive assessments of our financial expenditures.achievements in meeting safety production objectives and benchmarks.
80 81Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Impact Risk and Opportunity Management
AV-Display Co. Ltd. implements a dual prevention mechanism in compliance with the relevant provisions of the Work
Safety Law of the People’s Republic of China and has established institutional documents including the Hazard Iden- Case Fire Evacuation Drill at Shenzhen AV-Display Co. Ltd.tification and Risk Assessment Management Regulations Hazard Identification and Risk Assessment Work Guidelines
and Safety Inspection and Accident Assessment Management Regulations to continuously improve the Company’s
risk management processes. In May 2024 the Company organized a comprehensive fire emergency evacuation drill. The exer-
cise included on-site emergency evacuation procedures first aid training fire extinguisher operation
demonstrations and fire safety knowledge quizzes with rewards. This initiative significantly strength-
ened all departments’ and management levels’ understanding of fire safety principles particularly
Hazard Identification and Assessment the “Unobstructed Exits & Dual Response Capability” and “Four Understandings & Four Skills” fire safety awareness programs. Participants acquired proper fire equipment operation skills enabling
them to take correct emergency actions during fire incidents. The drill has made positive contribu-
◎ The Safety Production Committee annually organizes relevant departments to identify and assess risk tions to the Company’s work safety operations.sources in production activities and office environments establishing the Company’s Hazard Identifica-
tion and Risk Assessment Register.◎ When hazard sources change during the identification process risk reassessment shall be conducted
with corresponding updates to the Hazard Identification and Risk Assessment Register.◎ The Safety Production Committee promptly organizes re-identification and reassessment of hazard
sources based on departmental assessment results.◎ Upon completion of hazard identification and assessment differentiated control measures shall be im-
plemented according to risk levels.Pre-Drill Detail Coordination Procedure Rehearsal Verification
Potential Hazard Investigation
◎ Conduct in-depth special rectification and improvement actions for safety production implementing
internal hazard investigations and cross-site inspections per Company regulations to ensure effective
hazard rectification.◎ Perform comprehensive investigations on electrical safety fire safety chemical safety and other po-
tential risks enhancing source control systematic management and comprehensive governance.◎ During the reporting period the Company performed 24 special safety inspections identified and ad-
dressed 374 potential hazards achieving a 100% remediation rate. At our Ganzhou facility 57 safety
inspections were conducted resulting in 292 hazard corrections also maintaining a perfect 100% reso-
lution rate. Emergency Personnel Evacuation Cardiopulmonary Resuscitation Demonstration
Emergency Response Plan
◎ The Company has developed comprehensive emergency response plans for various contingencies in-
cluding fire hazards hazardous chemical leaks forklift accidents and pressure vessel explosions. These
plans are reinforced through systematic training programs and practical drills with each exercise fol-
lowed by thorough evaluation and performance assessment to maximize employee safety awareness
and emergency response capabilities thereby ensuring workforce protection. Portable Fire Extinguisher Hands-on Training Fire Safety QR Code Quiz Activity
◎ In 2024 the Company conducted a total of 23 safety emergency drills across all operational facilities.
82 83Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Case Ganzhou AV-Display Co. Ltd. Fire Evacuation Drill Case Ruidisheng Fire Evacuation Drill
In November 2024 Ganzhou AV-Display Co. Ltd. conducted a comprehensive fire emergency evac- In 2024 Ruidisheng organized a comprehensive firefighting and evacuation drill for all employees.uation drill. The exercise focused on developing fundamental operational skills for fire extinguish- Through this exercise staff gained deeper understanding of fundamental fire safety knowledgeing equipment and enhancing evacuation capabilities in fire scenarios. This initiative significantly ensuring every on-duty employee firmly establishes the fire prevention concept of “Prevention Firststrengthened fire safety awareness among all departments and management levels particularly re- Combining Prevention and Firefighting.” The drill effectively enhanced employees’ mastery of fire
garding the “Clear Exits & Dual Response Capability” principle and the “Four Understandings & Four safety knowledge strengthened safety awareness improved self-rescue capabilities during fire inci-Skills” fire safety framework. By mastering proper fire equipment operation techniques employees dents and served as a constant reminder of the importance of fire hazard prevention awareness.are now better equipped to respond appropriately during fire emergencies making valuable contri-
butions to the Company’s work safety performance.Personnel Assembly & Accountability Check
Fire Extinguisher Operation Training
Emergency Personnel Evacuation
Portable Fire Extinguisher Briefing Portable Fire Extinguisher Hands-on Training Fire Evacuation Drill Training On-site Sprinkler Fire Suppression Drill
84 85Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Indicators and Targets
Safety and Health Management Measures
AV-Display Co. Ltd. conducts quarterly assessments of the implementation status of its work safety standardization
along with comprehensive evaluations on the achievement of work safety objectives and targets. This process stand-
ardizes the Company’s work safety management and establishes a long-term management mechanism.AV-Display Co. Ltd. actively implements the work safety principle of “Safety First Prevention Foremost” and has es-
tablished regulatory documents including the Safety Training Management Regulations to strengthen employee safe-
Indicator Target Content Achievement Rate ty management. These measures continuously enhance staff safety awareness mitigate potential safety risks and
ensure both production safety and employee health.Hazard Rectification Rate 100.00% 100.00%
Emergency Plan Implementation Rate 100.00% 100.00% Stakeholder Safety Management
◎ Ensure all stakeholders entering Company operational areas comply with corporate safety standards
and procedures through signed safety agreements and safety education/training programs.Case EHS Training for Safety Management Personnel
Production Equipment Management
In January 2024 the Company organized EHS training for safety management personnel covering topics
including the correlation between hazard inspection frequency and safety incidents methodologies for ◎ Achieve 100% coverage of safety operating procedures and visual warning indicators for all production
hazard reduction and rectification implementation as well as the formulation of specific corrective meas- facilities/equipment. New equipment must undergo safety department inspection prior to commission-
ures. Through this training program the professional competencies of safety management staff were ing.further enhanced providing solid safeguards for the Company’s safety operations.Operations Management
◎ On-site supervisors and operators shall strictly adhere to safety operating procedures and regulations.Violations including unauthorized commands improper operations and labor discipline breaches are
prohibited.◎ Post-completion engineering projects require safety department acceptance inspections.◎ Implement safety duty schedules and leadership on-site shift systems during critical periods.◎ Establish high-risk work permit systems prohibiting unauthorized operations without safety agree-
EHS Training for Safety Management Personnel ments valid certifications or safety department approval.Key Performance: Safety Awareness Enhancement
In 2024 the Company invested 2295000 yuan in work safety initiatives with 50400 yuan ◎ Conduct legal/regulatory education and standardized safety knowledge training with focused cam-
paigns during national “Work Safety Month” and “Fire Safety Awareness Month”.specifically allocated to safety education and training programs. A total of 9374 personnel participated in ◎ Develop and execute annual safety training plans specifying content and schedules.
141 safety training sessions accumulating 4191 training hours while maintaining 100.00% ◎ Provide mandatory annual retraining for all employees to enhance professional competencies.
◎ Deliver specialized “Four New” (new technologies/equipment/processes/materials) training prior to
training coverage. Notably there were zero work-related fatalities throughout the reporting period. implementation.
86 87Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Occupational Health Protection
AV-Display Co. Ltd. has established regulatory documents including the Occupational Health Operation & Monitoring
Procedures and Occupational Health Monitoring Standards to systematically identify analyze and control occupa-
tional hazard factors that may arise during work processes. The primary occupational health hazards present in Com- Product Design Phase
pany workshops include hydrochloric acid noise sodium hydroxide and acetone. Annually the Company engages
third-party certified agencies to conduct comprehensive workplace occupational hazard assessments implementing
immediate protective measures based on test results. Concurrently we strengthen routine monitoring and inspection During the design and review stages the Company evaluates potential environ-
of occupational hazards while enforcing strict employee compliance with health protection measures thereby ensur- mental and occupational health and safety risks arising from product use or pro-
ing robust safeguards for employee health. duction. We advocate for adopting non-toxic and harmless process technologies
substituting toxic substances with non-toxic alternatives and highly toxic sub-
stances with less toxic ones.Occupational Health Examinations
The Company arranges corresponding occupational health examinations for
employees engaged in positions with occupational hazard factors including pre- Equipment Upgrades
employment annual in-service and pre-departure check-ups. These examinations
help employees effectively monitor their health status and enhance their self-
protection awareness. The Company replaces high-noise equipment with low-noise alternatives and in-
stalls vibration-damping and noise-reduction facilities implementing sound insula-
tion/absorption measures to prevent noise exceedance. Equipment failing to meet
safety requirements is systematically upgraded or phased out according to plan.Provision of Occupational Disease Protective Equipment
In accordance with occupational disease risk prevention requirements the Compa-
ny provides appropriate protective equipment such as protective masks earplugs
and safety shoes to operators in positions with potential occupational disease Key Performance:
hazards while ensuring strict employee compliance with usage protocols.In 2024 the Company achieved a 100.00%
certification rate for personnel engaged in special
operations with 875400 yuan invested in
work injury insurance. Employee physical examina-
Occupational Hazard Factor Monitoring
tion coverage reached 100.00% alongside
Following legal and regulatory requirements the Company identifies monitoring 100.00% testing rate for occupational hazard
points for occupational hazards based on existing risk sources and third-party
occupational health evaluation reports conducting routine safety inspections ac- factors. Notably zero new occupational disease cases
cordingly. were reported.
88 89C目o录ntents A关b于o本ut报 T告his 董Ch事a长irm致a辞n’s 走Gl进an秋c田e a微t AVD ESG 管理 Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Protecting Employees’ Legitimate
Rights and Interests
AV-Display Co. Ltd. consistently adheres to a people-oriented philosophy regarding employees as the most valuable asset
in corporate development. The Company respects individual differences and actively fosters an equal and inclusive work Protection of Women’s Rights
environment; provides comprehensive compensation benefits and training systems to achieve mutual growth for employ-
ees and the enterprise; and implements meticulous employee care initiatives to further enhance organizational cohesion. In full compliance with Labor Law of the People's Republic of China Trade Union Law of the People's Republic of Chi-
na Special Regulations on Labor Protection for Female Employees and other relevant laws/policies AV-Display Co.Ltd. has established the Special Collective Contract for Female Employees through negotiation with the labor union
effectively safeguarding women’s legitimate rights and special interests. Furthermore the Company and all subsidi-
Respecting and Safeguarding Human Rights aries actively organize International Women’s Day celebrations distributing commemorative red envelopes and floral bouquets to female staff thereby enhancing their sense of belonging and work motivation.AV-Display Co. Ltd. strictly complies with international standards including the United Nations Universal Declaration
of Human Rights and human rights provisions of the Responsible Business Alliance (RBA) Code of Conduct as well as
national laws and regulations such as the Labor Law of the People’s Republic of China and operational requirements
in overseas jurisdictions. The Company has established institutional documents including the Employee Handbook Per-
sonnel Management Guidelines Labor Ethics Risk Assessment Guidelines and AVD Code of Conduct to continuously
strengthen employee management prohibit any human rights violations and respect and protect human rights.The Company guarantees equal pay for equal work between genders and safeguards female employees’ rights firmly
opposing all forms of discrimination and differential treatment. We protect employees from sexual harassment threats
or intimidation in the workplace prohibit all forms of forced labor and eliminate child labor thereby creating a safe and
equitable work environment.Commitment to Equal Employment International Women’s Day Activities at International Women’s Day Activities at
Shenzhen AV-Display Co. Ltd. Ganzhou AV-Display Co. Ltd.AV-Display Co. Ltd. adheres to the principle of equal employment in its management practices. The Company pro-
hibits discrimination or unfair treatment of employees regarding employment compensation training and promotion
opportunities based on race color age gender sexual orientation ethnic classification disability pregnancy religion The Company respects and cares for female employees safeguarding their legitimate rights and interests during
political affiliation trade union membership or marital status. The Company implements equal pay for equal work
between male and female employees. During recruitment except for positions legally designated as unsuitable for menstrual pregnancy maternity and breastfeeding periods. We ensure female employees enjoy special labor pro-
women AV-Display Co. Ltd. does not reject female applicants or impose higher hiring standards based on gender nor tection in accordance with the law fostering a work environment that respects and supports women. The Company
does it discriminate against female employees based on marital or childbearing status. Equal treatment is guaranteed strictly prohibits female employees from performing high-altitude low-temperature cold-water operations or Catego-
in housing allocation and welfare benefits for all employees regardless of gender. ry III physically demanding labor (as nationally defined) during menstrual periods. Special nutritional meals and dedi-
cated dining areas are provided for pregnant employees. Nursing rooms are established in both office and production
The Company has established a complaint and grievance mechanism. Employees who experience unfair treatment areas to accommodate breastfeeding employees.may report their concerns to management at various levels. Management will provide reasonable responses based on
the actual circumstances and develop resolution plans within one week. Additionally the Company has set up both
physical “Suggestion Boxes” and digital channels via its official corporate WeChat account. Employees may submit
reports of unfair treatment through these channels. The Company’s Human Resources Department labor union and
management will address all discrimination cases conduct thorough investigations and take appropriate actions in
accordance with internal policies and applicable laws and regulations.Key Performance:
As of the end of the reporting period the Company employed 11 persons with disabilities and 184 ethnic
minority employees including 1 ethnic minority member in management positions.Prohibition of Child Labor
Post-Maternity Leave Return-to-Work Employee Care
The Company is committed to protecting the rights of minors and expressly prohibits the employment of child labor (persons
under 16 years old). Prior to hiring the Company verifies and retains legally documented proof of age. In cases where child
labor is inadvertently hired the Company will immediately report to local labor authorities and provide free medical exam-
inations. Should the child become ill the Company will provide free medical treatment until recovery then cooperate with Key Performance:
labor authorities to safely return the child to their place of origin under parental or guardian care.In 2024 45 employees utilized maternity leave benefits while 30 employees claimed paternity leave. Female rep-
2024
AV-Display Co. Ltd. recorded no incidents of employing child labor hiring minors for hazardous work or any forced labor. resentation within the Company’s management team accounted for 31.32% of total managerial personnel.
90 91Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Talent Recruitment and Retention
Diversified Recruitment Channels 1.93% 1.53% 96.54% 38.97% 61.03%
AV-Display Co. Ltd. continuously strengthens workforce development by formulating annual recruitment plans aligned
with corporate business strategies and evolving position requirements. The Company attracts top talent through mul-
tiple channels including campus recruitment social recruitment and employee referrals thereby infusing innovation
vitality into organizational development.By Recruitment
Channel By Gender
(people) (people)Campus Recruitment
Social Recruitment Male
Other Channels Female
Diverse Talent Composition
AV-Display Co. Ltd. Harbin Institute of Technology Recruitment Session AV-Display Co. Ltd. Jilin University Recruitment Session The Company respects differences and encourages diversity striving to promote organizational growth and sustain-
able profitability through rigorous transparent fair and standardized hiring processes. By analyzing departmental
structures across multiple dimensions including gender age education level and position we continuously optimize
our workforce. As of the reporting period end AV-Display Co. Ltd. maintains 2279 full-time employees.Key Performance:
By the end of the reporting period female employees represent
50.07% of AV-Display Co. Ltd.’s workforce with male em-
ployees comprising 49.93%. By educational attainment:
AV-Display Co. Ltd. Social Recruitment Campaign Ganzhou AV-Display Co. Ltd. Campus Recruitment Initiative doctoral degree holders account for 0.09% masters’ degree
holders 0.75% bachelor’s degree holders 10.53%
Key Performance:
and those with sub-bachelor qualifications 88.64%.In 2024 the Company achieved a 100.00% labor contract signing rate and conducted 36 recruit-
Note：Any discrepancies in the totals are due to rounding.ment events.
92 93Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Remuneration and Benefits Management
0.35%3.55%11.45%3.07%
72.22%1.05%
23.87%6.89%
Remuneration and Performance Evaluation
Production To standardize salary and benefits administration while enhancing employee motivation the Company has estab-
By Employee By Profession lished regulatory documents including the Salary Management Guidelines and Objective Management Evaluation and Level Senior Management (people) Sales(people) Incentive Measures creating a performance-based compensation system that delivers fair and competitive remuner-
Middle Management Technology ation packages. The salary structure comprises fixed base pay and variable components with the latter directly linked
to individual performance evaluations.Junior Management Finance
77.53% The company conducts regular quarterly and annual KPI performance evaluations for all employees in accordance
Ordinary Employees Administration with its annual operational objectives corresponding bonus and commission distribution standards are established.These assessments cover factors such as work performance and serve as the objective basis for determining perfor-
mance bonuses salary adjustments promotions/demotions annual excellence awards and job role changes.
2.37%
35.98%
21.15% Welfare System
AV-Display Co. Ltd. actively implements comprehensive welfare policies and has established the Benefits Administration
Guidelines to develop a holistic employee benefits framework. The Company makes full and timely contributions to the
By Age mandatory social insurance and housing fund programs (five social insurances and one housing fund) while providing 40.50% (people) Under 30 (exclusive) years old various allowances including job position allowances technical skill allowances and high-temperature work subsidies.
30-40 (inclusive 30 exclusive 40) years old Employees are legally entitled to annual leave marriage leave sick leave maternity/paternity leave and other statutory
holidays. During traditional festivals such as New Year’s Day Spring Festival Lantern Festival Dragon Boat Festival and
40-50 (inclusive 40 exclusive 50) years old Mid-Autumn Festival as well as employee birthdays the Company distributes seasonal gifts and birthday presents en-
abling every staff member to experience the warmth of the corporate family. During the reporting period the Company
50 years old and above achieved 100.00% coverage for both social insurance enrollment and employee benefits provision.
Note：Any discrepancies in the totals are due to rounding.Diversified Employee Welfare System
Welfare Classfication Welfare Type Employee Coverage
Key Performance:
Pension Insurance Medical Insurance Work Injury
By the end of the reporting period Shenzhen AV-Dis- Basic Welfare Insurance Unemployment Insurance Maternity In- All Employees
play Co. Ltd. recorded a total employee turnover rate of surance Housing Provident Fund
3.43% while Ganzhou AV-Display Co. Ltd. and Holiday Benefits Position Allowance Birthday Celebra-
tions High-Temperature Subsidies Night Shift Allow-
Care and Benefits All Employees
Ruidisheng reported turnover rates of 5.40% and ance Technical Subsidies Benefits for Female Employ-
9.41% ees Team Building Dining Benefits Medical Checkups respectively.
Household Registration Support for Recruited or
Transferred Employees Talent Housing Education-
Special Welfare Eligible Employees
al Enhancement Subsidies Couple Dormitories
Marriage Allowance Service Awards
94 95Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Strengthening Democratic Management
Facilitating Communication Channels
The Company strictly complies with the requirements of laws
and regulations such as the Trade Union Law of the People’s
Republic of China and the Regulations on Democratic Man-
agement of Enterprises establishing an open and democrat-
ic employee communication mechanism. Through convening
staff representative conferences and signing Collective Labor
Contracts with the trade union the Company safeguards
employees’ democratic rights including the right to know
participate express and supervise thereby achieving a bal-
ance between corporate development and the protection of
employees’ rights and interests. In accordance with the Com-
pany Law and the Articles of Association the Company has
elected one employee representative as a supervisor through
the staff representative conference to assist employees in
exercising their democratic management rights in accord-
ance with the law. The Company actively supports the trade
union in carrying out its duties legally fully leveraging its role
in safeguarding employee interests and internal coordina-
tion thereby enhancing employees’ sense of belonging and
loyalty and fostering a positive corporate atmosphere.The Company continuously enriches employee communi-
cation channels by encouraging suggestions and feedback
through official corporate social media accounts employee
Employee Birthday Celebration suggestion boxes staff communication meetings and other means. The Company places high importance on employee
opinions and employees may also provide feedback through
Key Performance: annual satisfaction surveys. Based on the collected feedback
and suggestions the Company implements necessary im-
provement measures. Employee Communication Meetings
In 2024 the Company invested 2.8574 million yuan in employee care benefits with an average
of 6.04 days of paid annual leave per employee. Key Performance:
In 2024 AV-Display Co. Ltd. Microelectronics held 1 Staff Representative Conference and 10 employee commu-
nication meetings while Ganzhou AV-Display Co. Ltd. held 1 Staff Representative Conference and 13 employee
communication meetings achieving a 100.00% case resolution rate for all employee feedback.Employee Satisfaction Survey
AV-Display Co. Ltd. conducts an annual employee satisfaction survey to collect feedback on employees’ concerns
opinions suggestions and overall satisfaction levels. The Company responds to and addresses these inputs in a time-
ly manner to cultivate employees’ sense of ownership and continuously improve its human resource management
standards. In 2024 AV-Display (Shenzhen) conducted the satisfaction survey covering dimensions such as compen-
sation & performance management training management and employee care collecting 762 valid questionnaires
with a participation rate of 78.86%. The overall satisfaction score reached 80.15 points representing a 12.18% increase
compared to 2023. AV-Display (Ganzhou) collected 949 valid questionnaires with a participation rate of 89.70%
achieving an overall satisfaction score of 78.10 points a 0.26% improvement year-on-year.
96 97Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Employee Grievance Mechanism
Employee Care
To protect the legitimate rights and interests of both the Company and its employees AV-Display Co. Ltd. has
formulated the Employee Complaint and Grievance Handling Guidelines to establish a comprehensive complaintand grievance mechanism. The Company provides unimpeded and confidential grievance channels for all em- AV-Display Co. Ltd. continuously implements employee welfare initiatives to create a “warm and harmoni-ployees to report or file grievances regarding issues such as corruption abuse of power for personal gain disclo- ous” working environment. We demonstrate full respect and care for our employees by proactively assisting
sure of confidential information violation of rules in directing operations abuse of authority and other incidents those in need and organizing diverse recreational activities thereby enhancing employee happiness and cor-
causing dissatisfaction in a timely manner. The Company has implemented a comprehensive whistleblower pro- porate cohesion.tection mechanism stipulating that no one may retaliate against employees for lawful grievances. Any violation
discovered will result in severe disciplinary action by the Company including direct termination of employment
contracts. In serious cases legal liability will be pursued in accordance with the law. Employee Support & Assistance
AV-Display Co. Ltd. is committed to providing comprehensive support for employees. We conduct annual
if unresolved care programs for employees facing difficulties focusing on resolving their most pressing concerns through Grievance Department Head Human Resources
issues concrete actions. Our efforts ensure targeted coverage for both employees in need and special cases involv-ongeneral (Section Chief and Department
Manager) ing family members. Additionally the Company actively organizes festive celebrations and annual events to
deliver various benefits conveying our care and warmth to all employees.Investigation conclude-
If resolved: OK dand results announced-within five days
Employee grievance Grievanceson Human Resources if unresolved
process significant issues Department General Manager
If resolved: OK Investigation concludedand results
announced
Grievanceson
special issues General Manager If resolved: OK
Investigation
concludedand results
Grievance Flowchart announced Lantern Festival Celebration Annual Gala Event
Mental Health Support
General Manager AV-Display Co. Ltd. attaches great importance to the development of community employees. During the re-
mental health of its employees. Adhering to the purpose porting period the Company conducted stress reliefManager of the of “developing and promoting mental health knowledge and emotional management training using case studiesDepartment Human Resources Employee Relationship in our factory and community and serving the mentalDepartment and teaching stress relief techniques to help employees Manager Specialist health of our employees and community members” and improve their mental health and better cope with pres-with the goal of “self-development and improvement sures in work and life.Department
Supervisor enhancing mental health awareness improving prob-lem-solving skills and helping others” the Company has
Employee Employee
Relationship Communication established a Psychological Assistance Association and
Shift Leader Official Employee Specialist Meetings Accounts Hotline Suggestion Box set up a Soul Station.* * * * * * The Company regularly organizes mental health edu-
cation activities including psychological growth work-
shops one-on-one counseling services and mental
Employees health guidance sessions to build a platform for corpo-
rate communication and employee psychological de-
Grievance Channels velopment. These initiatives drive and lead innovation
in corporate management to contribute to the healthy Stress Relief and Emotional Management Training
98 99Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Enriching Employee Activities
The Company prioritizes work-life balance and strives to meet employees’ growing spiritual and cultural needs. We
actively promote the establishment of sports and recreational clubs organizing a variety of engaging activities to
enhance employees’ happiness sense of belonging and strengthen corporate cohesion. Additionally the Company
regularly hosts employee sports meets competitive events and encourages participation in recreational activities or-
ganized by labor unions and government institutions.Employee Tug-of-War Competition
Men’s Basketball Tournament Women’s Shooting Competition
Zoo Visit Activity Teachers’ Day Appreciation Ceremony (Internal Trainers)
Employee Singing Competition Movie Screening Event
Fun Sports Meet Retiree Farewell Party Outdoor Team-Building Activities
100 101Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Employee Training & Development
We adhere to the talent principle of “both integrity and competence” and committed to building a learning organiza- On-the-job Training
tion that fosters employee growth. The Company has established a comprehensive training system providing employ-
ees with extensive career development platforms to continuously stimulate their initiative innovation and engage- AV-Display designs specialized knowledge and skill training programs according to departmental characteristics and
ment thereby maximizing the value of talent. job responsibilities to promote comprehensive employee development. The Company implements Company-level
training organized by the Human Resources Department providing different courses for employees at various levels
and positions including general knowledge courses professional skills courses management courses safety training
and system-related courses. Individual departments also conduct department-level training covering professional the-
Employee Training Management ory skills training and practical operations for their employees based on departmental functions. During the reporting period AV-Display Co. Ltd. conducted leadership training programs for mid-level potential leaders and newly promot-
ed managers to enhance their leadership and professional management capabilities while also providing systematic
professional training for employees across all job categories. The Company remains committed to developing a com-
Improving Training Mechanisms prehensive training system that supports employee growth and organizational success.The Company closely aligns talent development with corporate strategic goals by establishing systems such as the
Training Management Work Guidelines. The Company provides employees with comprehensive flexible and diversi- Training Participants Training Content
fied training programs covering essential competencies job-specific skills safety training leadership development
and more to meet their needs for professional knowledge enhancement and core vocational skills. Employees are en-
couraged to pursue self-directed learning enabling both personal growth and sustained corporate development. The Modern enterprise management theories cutting-edge technical
HR Department is responsible for continuously refining the internal training system and overseeing all training-related Management Personnel knowledge organizational decision-making capabilities corporate and
matters including the formulation of annual training plans training evaluation assessment and continuous improve-
ment. system strategic management
Internal Trainer Management
Professional technical training fundamental theory training business
Professional Technical Staff
The Company actively promotes the development of its internal trainer team to fully leverage internal training poten- operation training
tial enrich training resources and advance the standardization systematization and normalization of the Company’s
training framework. The Company has established the Training Management Work Guidelines which cover internal
trainer selection criteria qualification assessment teaching procedures responsibilities incentive standards and daily
management. Following each training session routine evaluations are conducted to assess training effectiveness and Relevant system knowledge training internal auditor skills training
enhance the quality of the internal trainer team. During the reporting period the Company maintained a pool of 112 Internal System Auditors
internal trainers with 9 newly certified trainers added. system-related laws and regulations training
Tiered Training System
Design Process Production
AV-Display Co. Ltd. has developed tailored training programs for employees at different management levels business Professional knowledge refresh training for implementation QC and Intellectual Property
functions and educational backgrounds including management staff technical personnel and production workers. certification systems
The Company’s employee training can be categorized into pre-employment training on-the-job training re-employ- Related Personnel
ment training and development training. These programs are delivered through a combination of internal and exter-
nal approaches utilizing various effective methods such as internal trainers external professional instructors external
training programs and team-building exercises to comprehensively enhance employees’ overall qualities and work Information Security Related
capabilities. Information security related knowledge trainingPersonnel
Pre-employment Training
The Company’s pre-employment training includes new employee orientation and job induction training. The training Corporate Legal Customs laws and regulations training as well as job-related trade
content mainly covers Company introduction rules and regulations code of conduct basic job knowledge work in- Representatives Customs
structions and other relevant materials. This helps employees gain better understanding of the Company and work security information security supply chain security and crisis Executives and Trade
environment quickly integrate into teams comprehend job requirements and rapidly adapt to work conditions there- management knowledge trainingRelated Personnel
by improving their workplace skills and building a talent pipeline with potential for the Company.
102 103Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Job Transfer and Re-employment Training Management Track Technical Track Marketing Track
AV-Display Co. Ltd. establishes training objectives develops training plans implements training programs and tracks Position Position R&D/Equipment/ Position Remarks
post-transfer training effectiveness for employees transitioning to new positions using these results as assessment grade Management grade Process/Quality grade Sales
criteria for job transfers and promotions. For employees returning from extended leave their respective department
supervisors arrange and ensure completion of pre-return training. M7 General Manager
Development Training M6-2 Senior Deputy General T6-2 S6-2 Senior Vice President of Manager Sales
Senior Chief Engineer
To meet the requirements of work-related further education or pre-appointment training for new positions due to M6-1 Deputy General Manager T6-1 S6-1 Vice President of Sales
promotion the Company recommends relevant personnel for external training. Trainees are required to compile their
acquired knowledge into manuals which are then submitted to the Human Resources Department for archiving as M5-2 Senior Director T5-2 S5-2 Senior Director of Sales
internal training materials. Based on internal training needs qualified trainees may serve as instructors to teach or Chief EngineerM5-1 Director T5-1 S5-1 Sales Director
share relevant knowledge with other employees. Promotion
M4-2 Senior Manager Sales Manager / pathways
Key Performance: T4 Principal Engineer S4 Customer Service available across Manager / Marketing three sequences
M4-1 Manager Manager
In 2024 the Company’s total investment in employee training reached 773200 yuan with
M3 Section Chief T3 Senior Engineer S3 Customer Service 538 training sessions conducted accumulating 66281.84 Supervisor training hours achieving a
100.00% M2 Administrator T2 Engineer S2 Salesman / Customer employee training coverage rate. Service Director
M1 Shift Head T1 Assistant / Assistant
Customer Service
Engineer S1 Representative / Marketing Specialist
Strengthening Training Assessment Clerk/Technician
The Company emphasizes the effectiveness of training by implementing systematic management across all stages 10-3 Team Leader/Quality Controller/Material Management Officer/Machine Debugging Officer Grassroots
including training needs identification planning application resource development implementation and evaluation. Position
The Human Resources Department is responsible for the proper management of training resources and records. Addi- 10-2 Multi-skilled Operator/Machine Operator
tionally the Company has established a robust training quality monitoring mechanism. After internal training employ- 10-1 General Operator (including Cleaning Personnel/Caterer/Security Staff)
ees are assessed through written tests oral exams practical operations and reflection reports to facilitate iterative
improvements in the training system and continuously enhance training outcomes. Employee Career Development Pathways
Key Performance:
Identification Planning Application Resource Development Implementation Evaluation In 2024 191 employees of AV-Display Co. Ltd. undertook internal transfers or applied for internal positions.Employee Career Development Pathways Supporting Employees’ Further Education
AV-Display Co. Ltd. encourages employees to pursue academic qualifications and provides education advancement
To meet the diverse career development needs of employees AV-Display Co. Ltd. has formulated the Person- subsidies to support their self-development. All eligible employees may choose from various continuing education op-
nel Promotion Management System and the Reserve Talent Cultivation Mechanism and Management Measures tions including self-study examinations adult higher education entrance examinations and on-the-job postgraduate
for College Graduates establishing three career development pathways: Management Sequence (M) Technical entrance examinations.Sequence (T) and Sales Sequence (S). This creates a position management system characterized by “definedsequences for roles clear growth channels and ample development space” enabling “vertical integration and Key Performance:horizontal connectivity” among the management technical and sales sequences. Through this “multi-channel”
model the Company continuously optimizes employee development paths providing comprehensive growth op- 16
portunities. We have abolished the “lifelong single-position” system clarifying promotion requirements for each During the reporting period employees at the Company upgraded their academic qualifications with
level to consistently motivate employees to enhance their professional and managerial capabilities. a total subsidy of 20000 yuan granted.
104 105Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
106 107Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Rural Revitalization Public Welfare & Charity
AVD fully recognizes the significance of rural revitalization to the nation’s long-term development. In active response AVD actively undertakes corporate social responsibilities enthusiastically participates in social welfare causes and
to the national rural revitalization strategy the Company comprehensively supports the development of rural areas does its utmost to build a better community. While striving to grow and strengthen the Company we remain true to
through consumption assistance education support and other means. our original aspirations and forge ahead joining hands with all sectors of society to jointly create positive community
relations and strive to make greater contributions to the development of human society and more strength to the
progress of human civilization. During the reporting period the Company's total social welfare investment reached
134300.00 yuan; organized and carried out 3 volunteer service activities.
Consumption Assistance Moreover the Company is deeply involved in local community construction and development. During the reporting pe-
riod the Company provided 12 employment opportunities to the local community accounting for 15.80% of the Com-
pany’s total positions.With the further advancement of the rural revitalization strategy agricultural support products play an important role
in increasing farmers’ income and promoting rural economic development. In active response to the national call and
to fulfill corporate social responsibilities the Company has carried out activities related to the procurement of agricul-
tural support products to provide consumption assistance. Case Thailand Water Purification Facility Donation Project
In November 2024 AVD partnered with Xylem to donate and construct a water purification facility
Education Assistance to a school in Thailand through the Planet Water Foundation putting ESG development into practice. The water purification facility adopts the latest filtration technology to ensure safe drinking water for
teachers and students improve water quality and conserve water resources. The AV-Display team
was fully involved in the facility installation and conducted supporting activities including hygiene
The Company is committed to supporting the development of rural education. To enhance self-directed learning knowledge education and stationery donations. As a practitioner of ESG principles this initiative re-
awareness among students in underprivileged areas the Company annually organizes study tours for students from flects AV-Display’s commitment to social sustainable development while calling for more forces to
Daliangshan region to visit our corporate facilities. This initiative aims to broaden students’ horizons beyond their participate in global sustainable development actions. Let us work together to create a better future
mountainous surroundings and inspire them to envision greater possibilities for their future. and strive to realize the grand vision of “With AV-Display for a Better Life.”
Case Daliangshan Student Study Tour Program
In 2024 AVD invited students from Daliangshan to the Company for a study tour activity.During the event the Company shared its development history product application fields
corporate culture etc. with the students and led them to visit workshops on-site allowing
the students to experience a different world of electronic technology.Study Tour Program for Students from Daliangshan Region Thailand Water Purification Facility Donation Project
108 109Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Case Community Greening Project Sponsorship Case Volunteer Service Activities
In 2024 AVD donated 49800.00 yuan to the Longgang District Charity Association for community
greening improvement project construction.Dawan Public Welfare Fund Donation Greening Effect Diagram
Certificate
Case Spring Festival Care Activity
On the eve of the 2024 Spring Festival the Company carried out a Spring Festival care initiative ESG Themed Education Activity - Litter Picking for a Better Environment
organizing employees to visit rural areas and deliver daily necessities such as rice cooking oil and
fruits to disadvantaged families. This activity reached 19 households across three counties/districts in
Ganzhou. The Company will continue to carry out such activities in the future.
2024 Yuanshan Street Volunteer Activity
110 111Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Future Outlook
The year 2025 marks the conclusion of China’s 14th Five-Year Plan and the preparation phase for the 15th Five-
Year Plan. Facing new circumstances and challenges AVD will steadfastly anchor its course toward sustainable
development steadily advancing Environmental Social and Governance (ESG) initiatives to deepen the integration
and synergistic enhancement of economic and social benefits.AVD will strictly comply with relevant laws regulations and normative documents continuously optimize corporate
policies and systems improve corporate governance structures strengthen internal control mechanisms and risk
management frameworks and solidify the governance foundation for the Company’s stable growth. Simultaneously
the Company will deepen ESG integration embedding ESG principles throughout corporate strategy and governance
processes. We will refine ESG management frameworks elevate governance standards enhance oversight and eval-
uation of ESG performance and ensure sustained progress along the path of sustainable development.Environmental protection remains a top priority for AVD. We integrate green development concepts into daily produc-
tion and operational activities. The Company has initiated green building certification for its Shenzhen industrial base
adopting cutting-edge green construction technologies and prioritizing high-performance low-energy recyclable
building materials. Advanced energy-saving technologies will establish efficient energy systems while green process-
es and intelligent controls will optimize indoor environments creating modern production spaces that are eco-friendly
energy-efficient and comfortable. The Company will increase environmental investments introduce advanced tech-
nologies and equipment optimize production processes to reduce per-unit energy consumption and improve resource
efficiency. We will strengthen waste reduction at source and enhance recycling systems implementing comprehen-
sive waste classification treatment and recovery to minimize emissions and maximize resource circularity. Aligning
with national ecological civilization goals the Company will actively participate in regional environmental initiatives
fulfill pollution prevention responsibilities ensure compliance with emission standards and explore effective carbon
reduction pathways to contribute to global climate action and achieve harmonious coexistence with nature.Moving forward AVD will remain true to its founding aspirations upholding responsibilities with the highest sense of
mission to meet stakeholder expectations. Guided by integrity and compliance we will drive innovation as our core
growth engine increasing R&D investments to deliver superior efficient and intelligent products through rigorous
lifecycle quality management. Talent development remains central to our strategy we will refine training and career
progression systems foster equitable and diverse growth opportunities and cultivate environments where employees
and the Company thrive together. Through proactive social engagement and philanthropic programs we will amplify
our contributions to societal well-being. These concerted efforts will fully embody our ESG commitments propel sus-
tainable progress and help build a brighter future.
112 113Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Indicator Index Table
Self-Regulatory Self-Regulatory
Global Reporting China Corporate Guidelines Global Reporting China Corporate Guidelines
Report Section Initiative (GRI) Sustainability Reporting for Listed Report Section Initiative (GRI) Sustainability Reporting for Listed
Standards Guidelines (CASS-ESG 6.0) Companies No. 17 Standards Guidelines (CASS-ESG 6.0) Companies No. 17 – Sustainability – Sustainability
Reporting (Trial) Reporting (Trial)
About This Report 2-2/2-3 P1.1/P1.2 Article 4 Environmental E2.1.1/E2.1.2/E2.1.3/E2.1.5/E2.1.6/Article 6 Green Compliance 303-2/306-1/306-2/306- E2.1.8/E2.1.9/E2.2.1/E2.2.3/E2.2.5/
Article 11
Development Management 3/306-5 E2.2.6/E2.2.7/E2.4.1/E2.4.2/
Articles 29-31
Article 33
Chairman’s Message / P2.1 / Promoting E2.4.3/E2.4.4
Harmonious
Company Profile 2-1 P3.1/P3.3 / Coexistence Resource Management 302-1/302-3/302-4/303-5 E3.1.1/E3.1.4/E3.1.5/E3.2.1/E3.2.3/ Article 11E3.2.4/E3.3.1/E3.3.2/E3.3.4 Articles 34-37
Development Strategy / P3.2 / S2.1.1/S2.1.2/S2.1.3/S2.1.4/S2.1.5/
Innovation as the Driver / S2.1.6/S2.1.7/S2.1.8/S2.1.10/ Article 11
Corporate Culture / P3.2 / S2.1.11/S2.1.12/S2.1.13 Article 42
Glance at AV- Milestones / P3.4 / Unwavering Supply Chain Display Management 2-6/308-1/308-2/414-1/414-2 S3.1.1/S3.1.2/S3.1.3/S3.1.4
Article 11
Execution: Article 45
Creating a
Honors / / / Paradigm of Product and Service
Value Safety & Quality 416-1 S3.3.1/S3.3.2/S3.3.4/S3.3.5/S3.3.6
Article 11
Article 47
ESG Ratings / / /
Performance in 2024 201-1 A2 / Data Security and
Privacy Protection 418-1 S3.4.1/S3.4.2/S3.4.4 Article 48
ESG Goals & Vision / G1.1.11 /
Occupational Health 403-1/403-2/403-3/403-4/403-5/403-6/403-7/403- S4.2.1/S4.2.2/S4.2.3/S4.2.4/ Article 11and Safety 8/403-9/403-10 S4.2.5/S4.2.6 Articles 49-50ESG Governance 2-14/2-17 G1.1.1/G1.1.2/G1.1.3 Article 12
ESG Valuing Talent
Management Stakeholder Article 9 Empowering Protecting Employees’ S4.1.1/S4.1.2/S4.1.3/S4.1.4/S4.1.5/
Engagement 2-16/2-29 G1.3.2 Article 53 Employee Legitimate Rights and
2-7/201-3/401-1/401-2/401-
Interests 3/405-1/406-1/408-1/409-1
S4.1.6/S4.1.7/S4.1.8/S4.1.9/S4.1.10/ Articles 49-50
Growth S4.1.11/S4.1.12
Management of Key
Issues 2-29/3-1/3-2/3-3 G1.1.9 Article 5 Employee Training and 404-2 S4.3.1/S4.3.2/S4.3.3/S4.3.4/ Articles 49-50
Standardization of 2-9/2-10/2-11/2-12/2-13/2-15/2- Development S4.3.5/S4.3.6
Corporate Governance 18/2-19/207-2 / /
Steadfast Commitment
Operations： Investors’ Rights and to Goodness: Rural Revitalization 203-1/203-2 S1.1.2/S1.1.4 Articles 38-39
Strengthening Interests Protection 2-16 / Article 53 Courageously
Governance Shouldering
Efficacy Maintaining of Integrity 2-25/2-27/205-2/205-3/206- G2.1.1/G2.1.2/G2.1.3/G2.1.4/G2.1.6/ Article 38
and Clean Governance 1/417-1 G2.1.7/G2.1.8/G2.2.1/G2.2.2/ Articles 54-56
Social Public Welfare&Charity 203-1/203-2 S1.2.1/S1.2.2/S1.2.5/S1.2.6
Responsibility Article 40G2.2.3
Future Outlook / A1 /
Green
Development 201-2/305-1/305-2/305-3/305- E1.1.1/E1.1.2/E1.1.3/E1.1.4/E1.1.5/ Article 11Promoting Climate Action 4 E1.1.6/E1.1.7/E1.1.8/E1.1.9/E1.1.14/ Articles 20-24
Indicator Index Table / A3 Article 57
Harmonious E1.1.16/E1.1.19 Articles 26-28
Coexistence Appendix
Feedback Form / A6 /
114 115Contents About This Chairman’s Glance at AVD ESG Steadfast Green Unwavering Valuing Talent: Commitment Future Appendix
Report Message Management Operations: Development: Execution: Creating Empowering to Goodness: Outlook
Strengthening Promoting a Paradigm of Employee Growth Courageously
Governance Harmonious Value Shouldering Social
Efficacy Coexistence Responsibility
Feedback Form
Multiple Choice (Please tick √ the appropriate option)
Thank you for reading the AV-Display Co. Ltd. 2024 Environmental Social and Governance (ESG) Report. To
1. Your overall evaluation of AV-Display Co. Ltd.’s 2024 ESG Report:
enhance our ESG performance strengthen sustainable development capabilities and improve communication with
stakeholders we sincerely invite your valuable feedback and suggestions on our initiatives and this report. □ Excellent □ Average □ Needs Improvement □ Not Familiar
2. How do you assess AV-Display Co. Ltd.’s performance in customer service
□ Excellent □ Average □ Needs Improvement □ Not Familiar
Contact：Securities Affairs Department
Address: No. 39 Jinyuan Road He'ao Yuanshan Subdistrict Longgang District Shenzhen 3. How do you assess AV-Display Co. Ltd.’s performance in technological innovation
E-mail：qiutw@av-display.com □ Excellent □ Average □ Needs Improvement □ Not Familiar
4. How do you assess AV-Display Co. Ltd.’s performance in corporate governance
□ Excellent □ Average □ Needs Improvement □ Not Familiar
Your Information 5. How do you assess AV-Display Co. Ltd.’s performance in workforce development
Name: □ Excellent □ Average □ Needs Improvement □ Not Familiar
Phone:
6. How do you assess AV-Display Co. Ltd.’s performance in social responsibility
Organization: □ Excellent □ Average □ Needs Improvement □ Not Familiar
Email: 7. How do you assess AV-Display Co. Ltd.’s performance in environmental protection
□ Excellent □ Average □ Needs Improvement □ Not Familiar
8. How do you assess AV-Display Co. Ltd.’s performance in sustainable supply chain management
□ Excellent □ Average □ Needs Improvement □ Not Familiar
9．Additional comments/suggestions on AV-Display Co. Ltd.’s ESG efforts:
116117
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