昱能科技：2023年度ESG报告（英文版）

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05-11昱能科技画册英文版StockCode:688348AddressBuilding2,No.522,AsiaPacificRoad,NanhuDistrict,JiaxingCity,ZhejiangProvincePhone0573-8398-6967NationalSalesHotline400-1035-181After-salesServiceHotline400-1008-470YunengTechnologyCo.,Ltd.Environmental,SocialandGovernance(ESG)ReportCONTENTS01AboutThisReportChairman'sMessageACloseGlimpseatAPsystemsSustainableProsperity,PerpetualDevelopmentGovernanceFrameworkRiskControlManagementInvestorRelationsBusinessEthics21242629RobustSupervision,GovernanceasPriority0103051702EmphasizingGreenManagementExpandingGreenBusinessInitiativesSustainingGreenOperations333541EnvironmentalConservationforFutureCollaboration031945515559624304LaborRelationsManagementEmployeeTrainingandDevelopmentHealthandSafety677477EmployeeWell-beingwithBoundlessRightsandInterestsKeyPerformanceIndexofIndicatorsFeedbackForm8587880506PromotingSocialHarmonyThroughPhilanthropyInitiativesAppendix85658131IndustrialProsperityandValueCo-CreationResearchandDevelopment(R&D)InnovationProductLiabilityCustomerRightsandInterestsSustainableSupplyChainManagementInformationSecurityandPrivacyProtectionScopeoftheReportThisreportrepresentstheinauguralEnvironmental,SocialandGovernancereport((hereinafterreferredtoas"ESGreport")releasedbyYunengTechnologyCo.,Ltd.(hereinafterreferredtoas"APsystems","thecompany"or"we").Upholdingprinciplesofobjectivity,standardization,transparencyandcomprehensiveness,thisreportprovidesadetaileddisclosureofthecompany'spracticesandperformanceinenvironmental,socialandgovernanceaspectsforthefiscalyear2023.Thisreportcenterson"APsystems"astheprincipalentity,encompassingitssubsidiarycompanies.Unlessotherwisespecified,thescopeofthisreportremainsalignedwiththatofthecompany'sannualreport.TimeframeFromJanuary1,2023,toDecember31,2023(referredtoasthe"reportingperiod").Toenhancecomparabilityandforward-lookinginsights,certainsectionsofthisreportappropriatelyreferencehistoricalyearsorcontainforward-lookingdescriptions.Thereleasefrequencyofthisreportisannual,synchronizedwiththefinancialyear.PreparationBasisShanghaiStockExchangeSelf-RegulatoryGuidelinesforListedCompaniesofSci-TechInnovationBoardNo.1-StandardizedOperation(December2023Revision)ChineseAcademyofSocialSciencesGuidetoCorporateSocialResponsibilityReportinginChina(CASS-ESG5.0)GlobalReportingInitiativeGRISustainabilityReportingStandards(GRIStandards)(2021Edition)UNSustainableDevelopmentGoals(SDGs)SustainabilityAccountingStandardsBoard(SASB)StandardsDataDescriptionThedatausedinthisreportissourcedfromvariouschannels,includingrawoperationaldatafromthecompany'sactualoperations,publiclyavailabledatafromgovernmentdepartments,annualfinancialdata,internalrelevantstatisticalreports,andthird-partyevaluationinterviews.FinancialdatainthisreportispresentedinChineseYuan(CNY).Anydiscrepancieswiththefinancialreportwilldefertothefinancialreportforaccuracy.TermDefinitionConfirmationandApprovalThisreportwasapprovedbythecompany'sboardofdirectorsonApril22,2024,andisreleasedsimultaneouslywiththeannualreport.Theboardofdirectorsensuresthesupervisionofthereport'scontent,guaranteeingtheabsenceofanyfalseormisleadingstatementsandtakingresponsibilityforthecontent'struthfulness,accuracyandcompleteness.ThisreportispublishedinChinese,andtheEnglishversionisatranslationoftheChineseversion.Intheeventofanydiscrepanciesbetweenthetwoversions,theChineseversionshallprevail.ReportAccessThisreportisaccessibleforviewinganddownloadingonthecompany'swebsite()andtheShanghaiStockExchangewebsite(.TermDefinition"APsystems","thecompany"or"we”YunengTechnologyCo.,Ltd.Environmental,SocialandGovernance(ESG)ReportAboutThisReport0102AboutThisReportChairman'sMessageTheboardofdirectorsplaceshighimportanceonESGmatters,namelyEnvironmental,SocialandGovernanceaspects.Wemanagethecompanywithintegrityandresponsibility,activelypromotingtheimplementationofsustainabledevelopmentstrategies.WewillgraduallyestablishandimprovetheESGsystem,implementingaseriesofmeasuresandpoliciestoeffectivelyrealizeenvironmentalandresourceprotection,andpromotegreenlong-termdevelopment.Alignedwiththetrendsofthetimes,APsystemsvaluesresearchanddevelopmentinnovation,continuouslyintroducingnewtechnologiesandproductstoprovideuserswithsafer,moreefficientgreenenergysolutions.In2023,APsystemscompleteditslatestcorporatestrategicfootprint,definingthethreemajorenergystorageindustryecosystemscenteredaroundmicro-inverters:DIYmicro-storage,residentialenergystorage,industrialandcommercialenergystorage.Thispositionsusasacomprehensivedistributedphotovoltaic+energystoragesolutionprovider.APsystemsisexpandingitstechnologicalandproductfootprintcomprehensivelytomeetthegreenenergyneedsindifferentdistributedscenarios.Additionally,APsystemsplacesgreatemphasisoncustomerservice,adheringtoacustomer-centricphilosophy,constantlyimprovingservicequalityandsatisfaction,andbuildinglong-termandcooperativerelationshipswithnumerousclients.Leveragingalocalizeddistributionandservicenetwork,APsystemsprovides24/7year-roundservicetomeettheneedsoflocalcustomers.Throughcollaborativeeffortswithpartners,APsystems'productsarenowpresentinover110countriesandregionsworldwide,coveringresidential,industrialandcommercial,publicbuildingsandBIPVsectors,acceleratingtheglobaltransitiontogreenenergy.Whilepromotingthedevelopmentofphotovoltaicenergystoragetechnologyandservingourcustomerswell,APsystemsactivelyfulfillsitssocialresponsibilities,contributingtothedevelopmentofpublicwelfareprojects.Wefocusonenvironmentalprotection,education,povertyalleviation,andsupportspecificprojectsthroughdonations,volunteeractivitiesandothermeans,drivingtangibleimpactintheseareas.Throughphilanthropicendeavors,wenotonlyprovideconveniencetothoseinneedbutalsogivemoremeaningtoourefforts.APsystems'currentdevelopmentistheresultofthehardworkandwisdomofeveryAPsystemsemployee.Asapeople-orientedenterprise,APsystemsalwayscaresaboutthedevelopmentandwell-beingofitsemployees.Weprovideagoodworkingenvironmentandbenefits,emphasizeemployeetrainingandcareerdevelopment.Weencourageinnovativethinkingandteamwork,andofferbroaddevelopmentopportunitiestoouremployees.Inthefuture,APsystemswillfurthersolidifyitsESGsystemconstructionand,withafreshperspective,embarkonanewchapterofhigh-qualitydevelopment.Whilestrivingforourowndevelopment,APsystemsalsoaspirestobethe"mostefficient,safeandcleanenergyconverter".Weactivelycollaboratewithvarioussectorsofsocietytodrivetheongoingglobaltransitiontogreenenergyandcreateabetterfuturetogether.Drivenbytheurgentglobaldemandforenvironmentalprotectionandclimatechangemitigation,thewaveofgloballow-carbontransformationissweepingacrossnations.Countriesworldwidearesettingemissionreductiontargetsandincreasingsupportforrenewableenergy,thuscontributingtotheconstructionofaglobalcommunitywithasharedfutureforalllifeonEarth.APsystems,asacompanyfocusedonthenewenergysector,hasalwaysregardedgreen,low-carbonandsustainabilityasthecoreprinciplesguidingourcorporatedevelopment.Withtechnologicalinnovationasourbackbone,wearecommittedtoourunchangingmissionof"DrivingTowardsaZero-CarbonFuture,Co-CreatinganIntelligentLife".Havingdeep-rootedexperienceinthephotovoltaicindustryforover13years,APsystemsisdedicatedtotheresearchandindustrializationofMLPEmodule-leveltechnology.Throughgenerationsof"pioneeringtechnologiesandproducts",weempowertheindustryforhigh-qualitydevelopment.Asthecompanyadvancesstandardizedmanagementoperations,APsystemsactivelypromotestheconceptofgreenandstableoperations,enhancinginternalmanagementstandardsandefficiencytoensurethecomplianceandsustainabledevelopmentofallbusinessactivities.Duringthereportingperiod,thecompany'soperatingincomeincreasedsteadily,creatinggreatervalueforourcustomers,shareholders,suppliersandemployees.In2022,thecompanyofficiallylistedontheA-shareSci-TechInnovationBoard,leveragingthecapitalmarkettoboostthecompany'ssubstantialdevelopment.YunengTechnologyCo.,Ltd.Chairman03Environmental,SocialandGovernance(ESG)ReportChairman'sMessage0304ACloseGlimpseatAPsystemsCompanyOverviewYunengTechnologyCo.,Ltd.(StockCode:688348.SH)wasestablishedin2010,specializingintheresearchandindustrializationofMLPEmodule-levelpowerelectronictechnology.WehavelaunchedorareintheprocessofdevelopingaseriesofhighlycompetitiveMLPEproducts,providingdistributedphotovoltaic+energystoragesolutionscenteredaroundmicro-inverters.Ourproductportfolioincludesmicro-inverters,module-leveldisconnectors,energystoragesystems,EMAdatabasesandintelligentoperationplatformsandmore.Thecompanyhasbeenrecognizedasa"NationalHigh-techEnterprise"from2013to2022andhasbeenconsecutivelynamedoneofthe"50Growth-OrientedandCharacteristicEnterprisesinZhejiangProvince'sElectronicInformationIndustry"fornineyearsfrom2014to2022.Additionally,from2020to2022,APsystemswasawardedthetitleas"TopInverterBrand"fromEUPDResearchforthreeconsecutiveyears.In2021,thecompanywashonoredasa"SpecializedandNew"SmallandMedium-sizedEnterprisesinZhejiangProvinceandrecognizedasaleaderinper-acreefficiencyinspecificsectorsandindustriesinZhejiangProvince.Ourproductshavebeenselectedas"ZhejiangManufacturingExcellence".APsystemsisthefirstdraftingentityforthePVgrid-connectedmicroinverterunderthe"ZhejiangManufacturing"groupstandard,fillingagapinthisfielddomestically.Weadheretotheprincipleofindependentresearchanddevelopment,focusingonqualityandsteadyprogress,makingusoneoftheearliestcompaniesinChinaengagedintheresearch,developmentandsalesofphotovoltaicmicro-inverters.Wepersistinproductandserviceorientationbasedonmarketdemand,makingcontinuouseffortssince2011toexpandglobally.WehavesuccessivelyestablishedsubsidiariesorbranchesinmajorinternationalphotovoltaicmarketssuchastheUnitedStates,Australia,France,theNetherlandsandMexico.Thishasformedaglobalsalesandservicenetwork,propellingustobecometheworld'ssecond-largestsupplierofmicro-inverterproducts.Asoftheendofthereportingperiod,morethan360,000setsofAPsystemsmicro-inverterphotovoltaicpowergenerationsystemsarerunningseamlesslyinover100countriesandregionsworldwide,includingAustralia,NorthAmerica,SouthAmerica,Europeandmore.Withstableproductqualityandexcellentperformance,thecompanyenjoyshighbrandawarenessandreputationintheindustry.Inthefuture,APsystemswillcontinuetorefineitself,keeppacewiththetimes,andcreateabroaderlandscapeforitsfuturedevelopment,aimingtobecomethe"mostefficient,safeandcleanenergyconverter"andactivelycontributetotheongoingglobaltransitiontogreenenergy,therebyco-creatinganintelligentlife.Environmental,SocialandGovernance(ESG)ReportACloseGlimpseatAPsystems0506Environmental,SocialandGovernance(ESG)ReportACloseGlimpseatAPsystems0708DevelopmentMilestones200920102011201820192020202120232012201420152016201720222013FoundedinSiliconValley,USA.EstablishedtheheadquartersinJiaxing,focusingonresearchandoperations.EstablishedsubsidiariesinSydney,Australia,andShanghai,ChinaIntroducedasthepioneeringmicro-inverterbrandintheAustralianmarketLaunchedthefirst-generationsingle-phasemicro-inverterEstablishedasubsidiaryinSeattle,USACompletedtheworld'slargest6MWmicro-inverterprojectatthattimePioneeredmulti-unitmicro-inverterarchitecture.Releasedtheworld'sfirstdual-unitsingle-phasemicro-inverterYC500Introducedtheworld'sfirstquad-unitthree-phasemicro-inverterYC1000-3EstablishedasubsidiaryinRotterdam,NetherlandsTheworld'sfirstmulti-unitsingle-phasemicro-inverterYC500receivedmultiplehonorssuchas"ZhejiangManufacturingExcellence"and"FirstSetofEquipmentManufacturingProductsinZhejiangProvince"Recognizedasoneofthe"50Growth-Ori-entedandCharacteristicEnterprisesinZhejiangProvince'sElectronicInformationIndustry"Recognizedasa"NationalHigh-TechEnterprise"and"JiaxingCity-LevelHigh-TechR&DCenter"Awarded"JiaxingCityPatentDemonstrationEnterprise"Awarded"ZhejiangProvincePatentDemonstrationEnterprise"and"ZhejiangExportBrand".Againrecognizedasoneofthe"50Growth-OrientedandCharacteristicEnterprisesinZhejiangProvince'sElectronicInformationIndustry".IncludedinthefifthbatchoftheenterpriselistforthePhotovoltaicManufacturingIndustryStandardConditionsEstablishedasubsidiaryinLyon,FranceEstablishedasubsidiaryinMexicoDesignatedasa"ProvincialEnterpriseResearchInstitute"EstablishedtheAPsmartbrandandlaunchedtheRSD-Smodule-leveldisconnectorwithASICspecializedchipsdevelopedindependentlyReleasedtheworld'sfirstfourth-generation20Ahigh-currentmulti-unitmicro-inverterDS3andQT2seriesproductsCumulativeglobalsalesofMLPEmodule-levelpowerelectronicproductsexceeded5GWLaunchof215kWhAir-CooledEnergyStorageSystemand215kWh/400kWhLiquid-CooledEnergyStorageSystemsReleasedtheEZ1seriesmicro-inverterwithWi-Fi+BluetoothdualcommunicationmodesHonoredwiththe"TopPhotovoltaicBrand"awardfromEUPDResearch,France,NetherlandsandBrazilSuccessfullylistedontheA-shareSci-TechInnovationBoard,enteringanewdevelopmentplatformContinuouslyrecognizedasa"NationalHigh-TechEnterprise"Launchedtheworld'sfirstdual-unitmodule-leveldisconnectorRSD-Dwithinputcurrentupto20AAgainhonoredwiththe"TopPhotovoltaicBrand"awardfromEUPDResearch,FranceCumulativeglobalsalesofMLPEmodule-levelpowerelectronicproductsexceeded2GWReceivedthehonorof"TopPhotovoltaicBrand"fromEUPDResearch,FranceContinuouslyrecognizedasa"NationalHigh-TechEnterprise"Thethird-generationdual-unitsingle-phasemicro-inverterYC600receivedthehonorof"ZhejiangManufacturingExcellence"Cumulativeglobalshipmentsofmicro-invertersexceeded1GWHonoredas"2016-2017HonestPrivateEnterpriseinJiaxingCity"ParticipatedinformulatingthenationalenergyindustrystandardTechnicalspecificationofphotovoltaicgrid-connectedmicroinverterIntroducedtheworld'sfirstthird-generationmulti-unitmicro-inverterproductsYC600andQS1,compliantwithintelligentgridschedulingAwarded"KeyEnterpriseinZhejiangProvince'sInformationEconomy-InnovativeLeadingEnterprise"BecamethefirstdraftingentityforthePVgrid-connectedmicroinverterunderthe"ZhejiangManufacturing"groupstandard.Designatedasa"ZhejiangProvinceEnterpriseTechnologyCenter"Againawarded"NationalHigh-TechEnterprise"and"50Growth-OrientedandCharacteristicEnterprisesinZhejiangProvince'sElectronicInformationIndustry"OwnershipStructureOwnershipStructureChart分公司&仓储APsystems'GlobalFootprintNumberofSubsidiariesorBranchesWorldwide9NumberofLocalWarehousesWorldwide5GlobalMarketingStrategyEstablishmentof9subsidiariesorbranchesworldwideLocalizedteamsproviding24/7no-time-zoneserviceGlobalWarehousingStrategyGlobalAfter-SalesSupportEstablishmentof5localwarehousesworldwideDualproductionbasedeploymentdomesticallyandinternationallytoensureglobalmarketsupplydemandsUIDtraceabilityandrapidresponsereturnandexchangeserviceprocessesProvisionofcomprehensiveglobalmultilingualonlineandofflinetrainingservicesLINGZHIMIN14.49%嘉兴昱创新能源有限公司控股100%TDGHoldingCo.,Ltd13.71%LUOYUHAO12.36%GAOLIMIN8.02%PANJIANQING7.71%JiaxingHuinengInvestmentManagementPartnership(LimitedPartnership)3.54%JiaxingHuiyingInvestmentManagementPartnership(LimitedPartnership)2.12%OtherOutstandingShares38.05%YunengTechnologyCo.,Ltd.(Apsystems)RegisteredCapital:CNY112millionJiaxingAPsystemsTradingCo.,Ltd.witha100%stakeZhejiangYingdaWeixinElectronicCo.,Ltd.witha100%stakeJiaxingWeihuiPhotovoltaicTechnologyCo.,Ltd.witha100%stakeJiaxingYuzhongNewEnergyTechnologyCo.,Ltd.witha100%stakeZhejiangChuangzhiNewEnergyCo.,Ltd.witha100%stakeJingningAPsystemsTechnologyCo.,Ltd.witha100%stakeTaizhouAPsystemsNewEnergyTechnologyCo.,Ltd.witha100%stakeJiangsuAdvancedEnergyStorageTechnologyCo.,Ltd.witha55%stakeAltenergyPowerSystemsMexicoS.A.DeC.Vwitha99%stakeJiaxingYuchuangNewEnergyTechnologyCo.,Ltd.witha100%stakeAltenergyPowerSystemsUSAInc.witha100%stakeAltenergyPowerSystemEuropeB.V.witha100%stakeAltenergyPowerSystemAustraliaPtyLtd.witha100%stakeEnvironmental,SocialandGovernance(ESG)ReportACloseGlimpseatAPsystems0910Environmental,SocialandGovernance(ESG)ReportACloseGlimpseatAPsystems1112APsystems'ThreeKeyScenarios:Micro-Storage、ResidentialEnergyStorage、IndustrialandCommercialEnergyStorageDIYResidentialUseSingle-phase:EZ1CloudInterconnectivityAPEasyPowerLakeseriesLake1000River1600ResidentialUseSingle-phase:DS3,DS3D3-phase:QT2,QT2DCloudInterconnectivityEMAPortalResidential/CommercialChargingStationsProductFootprintSeaseriesAPstorageELS-3/5K;ELS-7.6/9.6/11.4ELT-6/8/10/12APbattaryIndustryandCommerce3-phase:QT2,QT2DOceanseriesOcean200LOcean400LRSDseriesPhotovoltaicEnergyStorage+ProviderofFull-SceneSolutionsforDistributedPhotovoltaic+EnergyStorageApplicationsApplicationScenariosKeyPerformance5GWCumulativeGlobalSalesofMLPModule-LevelPowerRlectronicProductsCumulativeGeneratedPowerInventionPatentsNumberofSystems365,000+4,800GWh+84ItemsIntellectualPropertyRights166ItemsCumulativeCarbonDioxideEmissionReductions4.81milliontons+CountriesandRegions130+CorporateCultureDrivingaZero-CarbonFutureCo-creatingIntelligentLivingOurMissionOurVisionOurPurpose2023MajorEventsFeb.Mar.Apr.May.Aug.Sep.APsystemssignedstrategiccooperationagreementswithDBGTechnologyandTDGTechnology,whowillsupplyAPsystemswithinverterscompatiblewith8millionmodulesin2023.APsystemsreleasedits2022annualreportandQ12023report.APsystemscelebratedits13thanniversary.Withthirteenyearsofindustryexpertise,APsystemshasbeendedicatedtotheresearchandindustrializationofMLPEmodule-levelpowerelectronics,undergoingitsowntransformationwhilegrowingintandemwiththetimes.APsystemssignedaglobaldistributioncooperationagreementwithOSW,aphotovoltaicstorageanddistributionserviceprovider,bothpartieswillembarkonacomprehensiveandmutuallybeneficialcollaborationinthefuture,leveragingtheirrespectiveadvantagestoachievecooperativesuccess.APsystemssignedastrategiccooperationagreementwithpartnerXiamenAmpaceTechnologyCo.,Ltd.Bothpartieswilldeepentheirtechnicalcooperationinthefieldofresidentialenergystoragesystembatterypacks,usingthisasanopportunitytopromotethelong-termdevelopmentandstrategicdeploymentofrelatedbusinesses.APsystemsparticipatedintheSNECShanghaiexhibition,heldtheEZ1newproductlaunchevent,andlaidouttheecologicallandscapeofthethreemajorphotovoltaicstorageindustries.APsystems,incollaborationwithmultiplecharitableorganizations,donated1,666solarreadinglightstomorethantenprimaryandsecondaryschoolsinremotemountainousareasinSichuanandGuizhouprovinces,China.TheAPsystems'SocialResponsibilityReport2022wasofficiallyreleased.Theindustry'sfirstmicro-invertertechnologyvideocolumn,APsystemsMicroLectureHallwaslaunched.APsystems,togetherwithGoodWeTechnologyCo.,Ltd.andseveralotherunitsandinstitutions,jointlyinitiatedtheDistributedPhotovoltaicStorageSafetyandQualityImprovementInitiativeandsignedtheDistributedPhotovoltaicStorageSafetyandQualityImprovementInitiativeProposal.SeniorexecutivesfromStublivisitedAPsystems,engaginginin-depthdiscussionsonfuturecooperationstrategies,aimingtoempowermutualdevelopment.ToBetheMostEfficientSafeandCleanEnergyConverterDeliveringOptimalProductsandExceptionalServicestoOurCustomersEnvironmental,SocialandGovernance(ESG)ReportACloseGlimpseatAPsystems1314Accoladesin2023LeadingChina'sRenewableEnergy"PhotovoltaicTop100"2022-ExcellentPhotovoltaicinverterEnterpriseAPVIATechnologyAchievementAward-EnterpriseCategoryGREENPVTechnologyInnovationAwardin2023MostInfluentialPVInverterCompanyin2022ChinaGoodPhotovoltaic-2022AnnualPhotovoltaicInverterTechnologyBreakthroughAward2022AnnualChinaHigh-QualityResidential/CommercialInverterBrandPVBLTop100PVBrandsintheWorld2023PVBLMostInnovativePVSolarEnterpriseAward2023Top15ChineseSolarInverterListedCompaniesonPVPowerPlants20232023NewEnergyPioneerAwardTopBrandPVInvertersFrance2023TopBrandPVInvertersBrazil2023SpecializedandNewEnterprisesMicro-inverterAQMExcellenceAward2023SNECMegawatt-levelJadeAwardTopBrandPVInvertersLatam2023TopBrandPVInvertersMexico2023AsianPhotovoltaicInnovationEnterprise,2022ChinaDistributedPhotovoltaicInnovationBrand2022Environmental,SocialandGovernance(ESG)ReportACloseGlimpseatAPsystems1516SustainableProsperity,PerpetualDevelopmentThecompanyprioritizeseffectivecommunicationwithstakeholdersbyidentifyingthem,outliningtheirkeyconcernsandspecifyingcommunicationchannelstoensureaccurateand。

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timelyinformationdissemination.Moreover,thecompanyadoptsaresponsiveapproach,addressingstakeholders'concernspromptlyandeffectivelytofostermutualtrustandachievemutuallybeneficialoutcomesStakeholderCommunicatioThecompanyhasidentifiedandassessedtheimportanceofsubstantiveESGissuesbasedontwodimensions:"importancetothecompany"and"importancetostakeholders".Theseissueshavebeenprioritizedandconfirmed,guidingthecompanyinsettinggoalsandfocusingonadvancingESGworkeffectively.SubstantiveIssueAnalysisSustainableDevelopmentGoalsSustainableDevelopmentInitiativesCorporateGovernance(G)RobustSupervisionGovernanceasPriorityEnvironmentalProtection(E)EnvironmentalConservationforFutureCollaborationIndustryValue(S)IndustrialProsperityandValueCo-CreationEmployeeRightsandInterests(S)EmployeeWell-beingwithBoundlessRightsandInterestsSocialResponsibility(S)PromotingSocialHarmonyThroughPhilanthropyInitiativesManagementDimensionManagementPhilosophySDGsRightsandInterestsProtectionofShareholdersandInvestorsThree-TierGovernance(Shareholders'Meeting,BoardofDirectors,SupervisoryBoard)BusinessEthicsInformationDisclosureComplianceRiskControlIntellectualPropertyProtectionOccupationalHealthandSafetySupplierManagementProductQualityManagementR&DInnovationCustomerRightsandInterestsProtectionGreenBusinessPracticesEnergyManagementWasteManagementEnvironmentalManagementEmployeeBenefitsSocialWelfareTalentDevelopmentandTrainingEmployeeDiversityandInclusivityTheExtentofImpactontheCompany'sSustainableDevelopmentTheExtentofImpactonStakeholdersStakeholdersKeyConcernsCommunicationMethodsFairCompetitionAnti-CorruptionBusinessEthicsOperationalPerformanceInformationDisclosureandCommunicationMechanismsCorporateGovernanceR&DInnovationEthicalBusinessPracticesProductQualityCustomerServiceInformationSecurityandPrivacyProtectionOccupationalHealthandSafetyCompulsiveandForcedLaborCompensationandBenefitsEmployeeTrainingandDevelopmentFairTradeSustainableSupplyChainHealthandSafetySocialWelfareInstitutionalInspectionsPolicyImplementationInformationDisclosureShareholders'MeetingRegularandTemporaryReportsInvestorHotlineCustomerSatisfactionSurveysCustomercommunicationChannelsInformationSecurityRiskAssessmentsEmployeesatisfactionEmployeeactivitiesOccupationalHealthMonitoringSafetyProductionManagementSigningthe“SupplierCorporateSocialResponsibilityCommitment”SafetyTrainingSocialWelfareActivitiesGovernmentandRegulatoryAgenciesShareholders/InvestorsCustomersEmployeesSuppliersCommunityEnvironmentalAspectsSocialAspectsGovernanceAspectsEnvironmental,SocialandGovernance(ESG)ReportACloseGlimpseatAPsystems1718RobustSupervision,GovernanceasPriorityEnvironmental,SocialandGovernance(ESG)ReportRobustSupervision,GovernanceasPriority1920GovernanceFrameworkShareholdersandShareholders'MeetingDirectorsandBoardofDirectorsAPsystemsplacesaparamountemphasisonstandardizedcorporateoperationsandhasmeticulouslycraftedarobustcorporategovernancesystem,ensuringanappropriateseparationofownershipandoperationalrights.Throughoutthereportingperiod,thecompanystrictlyadheredtopertinentlawsandregulations,includingtheCompanyLawofthePeople'sRepublicofChina,theSecuritiesLawofthePeople'sRepublicofChina,andtheGovernanceCodeforListedCompanies.Concurrently,itcompliedwithdirectivesfromregulatorybodiessuchastheChinaSecuritiesRegulatoryCommissionandtheShanghaiStockExchangeconcerningcorporategovernancepracticesbyestablishingagovernancestructurecomprisingShareholders'Meeting,theBoardofDirectors,theSupervisoryBoardandthemanagementteam.Eachentityoperatesinconcert,fulfillingdistinctroleswhilesynergisticallyreinforcingoneanother.Thiscollaborationhasfosteredagovernancestructurecharacterizedbyclarityofpurpose,evidence-baseddecision-making,robustoversightandseamlessexecution,therebypropellingthecompany'ssustainedprogressanddevelopment.TheShareholders'Meetingservesasthecompany'sgoverningbodyresponsibleforformulatinganddecidingonmajorstrategic,policyandmanagementmatters.AdheringtotheCompanyLawofthePeople'sRepublicofChina,theRulesonShareholders’GeneralMeetingsofListedCompanies,theRulesGoverningtheListingofStocksontheSTARMarketoftheShanghaiStockExchangeandtheArticlesofAssociation,APsystemshasestablishedtheRulesofProcedureforShareholders'Meeting.ThecompanydiligentlyorganizesandconvenestheShareholders'Meetingincompliancewithregulationstosafeguardshareholders'rightstoinformation,participationandvoting.Duringthereportingperiod,thecompanyconvened1annualShareholders'Meetingand4extraordinaryShareholders'Meetings,approvingatotalof17resolutions.SupervisorsandSupervisoryBoardAPsystems,guidedbythestipulationssetforthintheRulesofProcedurefortheSupervisoryBoardhaselevateditsgovernancestandardstosafeguardthelawfulrightsandinterestsofthecompanyanditsshareholders.TheSupervisoryBoardcomprises3supervisors,including1employeerepresentativesupervisor.Eachsupervisorupholdsastrongsenseofaccountabilitytoshareholdersandcarriesouttheirresponsibilitiesinstrictadherencetolegalstatutes,regulatoryframeworks,andtheArticlesofAssociation.Functioningasthecompany'soversightmechanism,theSupervisoryBoardconductseffectivelegalandcompliancesupervisionoverthecompany'sfinancialaffairsandtheperformanceofitsdirectorsandseniormanagement.Throughoutthereportingperiod,thecompanyconvenedatotalof8meetingsoftheSupervisoryBoard,duringwhich21proposalswerereviewed.Inanefforttofurtherstandardizethedeliberationanddecision-makingprocessesoftheBoardofDirectors,andenhancethescientificandforward-thinkingnatureofboarddecisions,APsystemshasformulatedtheRulesofProcedureforBoardMeetings,IndependentDirectorWorkSystemandBoardSecretaryWorkRulesinaccordancewiththeCompanyLawofthePeople'sRepublicofChinaandtheArticlesofAssociation.TheBoardofDirectorscomprises7directors,therebymeetingthelegalrequirementsforboardcomposition.TheBoardofDirectorshasestablishedfourspecializedcommittees:Audit,Nomination,StrategyandCompensation&Assessment.Allmembersofthesespecializedcommitteesaredirectorswhoperformtheirrespectivefunctionsincompliancewiththecompany'srelevantsystems,therebyregulatingthecompany'soperations,ensuringtherationalityandfeasibilityofdecisions,andpromotingthecompany'ssustainabledevelopment.CompanyOrganizationalStructureandResponsibilitiesShareholders'Meeting,BoardofDirectors,SupervisoryBoardDuringthereportingperiodTheBoardofDirectorsMeetingsTimes9AuditCommittee:4meetings,reviewing11proposalsStrategyCommittee:3meetings,reviewing5proposalsNominationCommittee:3meetings,reviewing4proposalsCompensation&AssessmentCommittee:1meetingreviewing2proposalsShareholders'MeetingBoardofDirectorsCompensation&AssessmentCommitteeNominationCommitteeFinanceDepartmentHR&AdminDepartmentOperationsDepartmentR&DCenterSalesDepartmentMarketingDepartmentSupplyChainManagementDepartmentRiskmanagementDepartmentAuditCommitteeStrategyCommitteeGeneralManagerInternalAuditDepartmentBoardSecretarySecuritiesDepartmentSupervisoryBoardCompanyOrganizationalChartPerformanceTheBoardofDirectorsResolutions40ItemsTheSpecializedCommitteeMeetings11TimesTheCollectivelyReviewingProposals22ItemsEnvironmental,SocialandGovernance(ESG)ReportRobustSupervision,GovernanceasPriority2122BoardCompositionDiversityRiskControlManagementAPsystemsplacesastrongemphasisonandactivelypromotesdiversitywithinitsBoardofDirectors.Thecurrentboardcomprises7directors,ofwhich3areindependentdirectors,constituting42.86%oftheboard,and1isafemaledirector,representing14.29%.Alldirectorspossessextensiveacademicbackgroundsandrichpracticalexperienceacrossvariousdomainsincludingeconomics,accountingandbusinessadministration.Theyserveasasolidfoundationforthecompany'sstabledevelopment.Notably,2directorsholddoctoraldegreeswhile2othersholdmaster'sdegrees,providingrobustintellectualsupportandstrategicguidancetothecompany'sdecision-makingprocesses.AdheringtothestandardssetbytheCompanyLawofthePeople'sRepublicofChina,theAuditLawofthePeople'sRepublicofChinaandtheArticlesofAssociation,alongwithitsassociatedguidelines,APsystemshasestablishedanInternalAuditSystemtostrengtheninternalauditsupervisionofthecompanyanditssubsidiaries.Continuously,inaccordancewithvariouslaws,regulationsandregulatoryrequirements,thecompanyenhancesitscorporategovernancemechanism,revisesandoptimizesriskcontrolmanagementsystemsandinternalcontrolsystemsinatimelymanner,effectivelystrengtheningthenormativityofcorporategovernanceandsafeguardingthelegitimaterightsandinterestsofthecompanyanditsshareholders.Thecompany'sAuditCommitteeisresponsibleforleadingandsupervisinginternalandexternalaudits.TheinternalauditorganizationistheAuditDepartment,whichoperatesindependentlyundertheleadershipofthecompany'sAuditCommittee,conductsauditsrigorously,closelymonitorsoperationalrisks,andensuresthecompany'slong-termstabledevelopment.Toprotectshareholderinterests,thecompanyregularlysupervisesandauditstheexerciseofpowersbyseniormanagement,majorinvestments,financialfund-raisingandorganizationalactivitiesrelatedtoeconomicactivities.Asoftheendofthereportingperiod,thecompany'smajordecision-makingandoperationshavebeeningoodcondition,withnomajorinternalcontroldefectsreported.Thecompany'sdirectorsandsupervisorsregularlyorganizeinternaloversightactivitiestoconductsystematicandstandardizedauditsofthecompany'soperationalmanagement.Theseauditsencompassareassuchasfinancialmatters,procurement,expenses,contracts,andotherkeyoperationalmanagementaspectsifnecessary.Thedesignatedauditleaderisdirectlyaccountabletothecompany'sshareholders,ensuringtheindependenceofauditorsandtheobjectivityofauditresults.Uponidentifyingissues,theyproviderecommendationsforcorrectiveactionsandconductfollow-upchecks.Theproficientexecutionoftheinternalauditsystemhasresultedinaprogressivestandardizationofcorporatemanagement,leadingtoaneffectivecontroloverdiverseoperationalrisks.Thecompanyentrustsprofessionalaccountingfirmsforitsannualfinancialaudit.Theseauditfirmsareselectedbasedontheirqualifications,expertiseandlackofconflictsofinterestwiththecompany.Theauditresultsfromrecentyearsdemonstratethecompany'sadherencetoregulatorystandardsandrequirementssetforthbyrelevantstakeholders.RiskManagementandInternalControlsLingZhiminLuoYuhaoQiuZhihuaPanZhengqiangGuJianruZhouYuanShenFuxinDirectorDirectorDirectorDirectorIndependentDirectorIndependentDirectorIndependentDirectorMaleMaleMaleMaleFemaleMaleMale2020.9.162020.9.162020.9.162020.9.162020.9.162020.9.162023.9.1662505836505759Post-doctorateDoctorateBachelor'sdegreeMaster'sdegreeBachelor'sdegreeBachelor'sdegreeMaster'sdegreeElectronicInformationElectronicInformationEconomicsandManagementManagementAccountingEconomicsandManagementIndustryManagementNameType/PositionGenderTenureAgeEducationAreaofExpertiseAPsystems'AuditMechanismInternalAuditMechanismIndependentExternalAuditFirmAnnualAuditEnvironmental,SocialandGovernance(ESG)ReportRobustSupervision,GovernanceasPriority2324FinancialandTaxTrainingThecompanyplacesahighlevelofimportanceontaxmanagement,adheringstrictlytotherelevanttaxregulationssuchastheAccountingLawofthePeople'sRepublicofChina.Clearguidelinesareestablishedforinvestmentprojectapprovals,settlementmanagement,costaccounting,expensereimbursementsandaccountsreceivablemanagement,thuscreatingarobustfinancialframeworkconducivetoeffectivetaxplanning,riskmitigationandcompliance.Theappointmentofthefinancialleaderisundertakenbythecompany'sBoardofDirectorsandrequiresshareholderapproval,ensuringtheindependenceandintegrityoffinancialoperations.Thefinancialleaderholdsaccountabilitytoallshareholdersofthecompanyandexecutesdutiesfrombothfinancialandwealthmanagementperspectives,therebyenhancingtheoverallfinancialmanagementproficiencyofthecompany.Thefinancedepartmentregularlyorganizestaxtrainingsessionsforfinancepersonneltostayabreastofthelatestfinancialandtaxregulations,mitigatingtax-relatedrisks.Asoftheendofthereportingperiod,thecompanyhaseffectivelymanagedtaxrisks,andnoinstancesoftaxevasionornon-compliancehavebeenrecorded.APsystemsiscommittedtoabusinessphilosophyofintegrityandmutualbenefit,prioritizingsustainablecorporatedevelopment.ComplyingwiththeCompanyLawofthePeople'sRepublicofChinaandotherrelevantregulations,thecompanycontinuouslystrengthensitscreditsystemandproactivelysafeguardstheinterestsofallstakeholders.Thecompanyplacessignificantemphasisondeliveringreturnstoitsshareholders,strictlyadheringtotheprofitdistributiondecision-makingproceduresoutlinedintheArticlesofAssociation.Toensureequitablereturnsforbothnewandexistingshareholders,APsystemshasformulatedtheThree-YearDividendPlanforShareholdersAfterInitialPublicOfferingandListingontheSTARMarket.Thisplannotonlyenhancestransparencyandoperationalfeasibilityinprofitdistributiondecision-makingbutalsoempowersshareholderstoeffectivelyoverseeandevaluatethecompany'soperationsandprofitallocation.Duringthereportingperiod,thecompanyconductedtrainingactivitiesfocusedonfinancialandtax-relatedknowledgeandskills.Throughmethodssuchasexplanations,demonstrationsanddiscussions,employeesgainedin-depthunderstandingoftax-relatedknowledgeandskills,therebyenhancingtheirabilitytoapplythisknowledgeeffectivelyandimprovingtheirpracticaloperationalproficiency.Thesetrainingeffortswereaimedatboostingtheefficiencyandqualityoftax-relatedwork,providingbetterservicesandsupportforthecompany'staxactivities.InvestorRelationsTaxManagementRelated-PartyTransactionsShareholderReturnsToensurethefairness,reasonablenessandtransparencyofrelatedpartytransactions,aswellastostandardardizethecompany’spracticeinrelatedpartytransactions,andtoeffectivelymitigaterelatedtransactionrisks,APsystemshasdevelopedtheRelatedPartyTransactionsManagementSystem.ThissystemisestablishedinaccordancewiththerelevantprovisionsoftheCompanyLawofthePeople'sRepublicofChina,theArticlesofAssociationandthespecificcircumstancesofthecompany.Itaimstostandardizetheconductofrelatedpartytransactionsbyregulatingtheentitiesinvolvedandtheapprovalprocedures.Byimplementingthissystem,thecompanyseekstoupholdthefairnessandreasonablenessofitsbusinessactivities,enhanceitscorporategovernancestructure,andprotectthelawfulrightsandinterestsofthecompanyanditsstakeholderseffectively.TheCompany'sCashDividendPayoutKeyPerformance2023DividendsPerShare(CNY)TotalCashDividendsPaid(CNY10,000)ProportionofNetIncomeAttributabletoShareholdersoftheListedCompanyintheConsolidatedFinancialStatements(%)2.21,76048.82Note:Theannualequitydistributionfortheyear2022implementedin2023includesacapitalreservetransferof4sharesforevery10sharesheldbyallshareholders,inadditiontocashdividends.TheCompany'sActualTaxPaymentDuringtheReportingPeriodCNY177.89millionPerformanceEnvironmental,SocialandGovernance(ESG)ReportRobustSupervision,GovernanceasPriority2526InvestorCommunicationEventIneffortstosustaincontinuousengagementwiththecapitalmarketandfacilitateinvestorunderstandingofthecompany'soperationsanddevelopment,aswellasshowcasetheinherentvalueofthelistedcompany,APsystemscollaboratedwithChinaSecuritiestoorganizethe"IAmaShareholder"InvestorVisittoAPsystemsonNovember23,2023.Investorswereinvitedtovisitthecompanyforin-depthtoursandresearch.Duringthevisit,severalexecutivesengagedincandiddiscussionsandexchangeswithinvestors,providinginsightsintothecompany'sdevelopmentaljourney,significantmilestones,productshowcasesandbusinessframework.Intheinteractivesession,theboardofdirectors,boardsecretaryandchieffinancialofficeraddressedinvestors'concernsindetail,providingcomprehensiveinsightsintothecompany'soperations,strategicroadmap,andfuturedevelopment.Thiseventaimedtoenhanceinvestors'understandingofthecompany'soverallsituation,promoterationalinvestmentconcepts,andcontributetothecontinuoushealthydevelopmentofthecapitalmarket.PerformanceBriefingDuringthereportingperiod,thecompanyhostedatotalof3PerformanceBriefings.AttendeesincludedtheChairmanoftheBoard,ChiefFinancialOfficer,andBoardSecretary,etc.Thebriefingutilizedinteractiveteleconferencingtopresentthecompany'soperationalperformanceforthefirsthalfoftheyearandengageindetaileddiscussionswithinvestors.Thiseventaimedtoboosterinvestorconfidenceinthecompanyandfostertheestablishmentofenduringcollaborativerelationships.APsystemsrigorouslyupholdsitsobligationsforinformationdisclosure,asmandatedbytheCompanyLawofthePeople'sRepublicofChina,theSecuritiesLawofthePeople'sRepublicofChina,theAdministrativeMeasuresforInformationDisclosureofListedCompanies,andtheRulesGoverningtheListingofStocksontheSTARMarketoftheShanghaiStockExchange.Inalignmentwiththeselegalframeworks,thecompanyhasformulatedtheInformationDisclosureManagementSystem,whichdelineatesguidelinesforperiodicreporting,temporaryreporting,responsibilitiesininformationdisclosuremanagement,disclosureprocedures,andmeasuresforconfidentiality.Thisensurestheauthenticity,accuracy,timelinessandcomprehensivenessofinformationdisclosure,therebyreinforcingthemanagementproficiencyininformationdisclosureaffairsandensuringequalaccesstoinformationforallshareholders.Adheringstrictlytotherequirementsoftheinformationdisclosuresystem,thecompanyregularlyreportsfinancialchanges,operationalstatusandrelevantinformationtoitsexecutivedirectorsandshareholders.Additionally,itpubliclydisclosesinformationtoallinvestors,continuallyenhancingtransparencyandmaintainingtheopennessofthecompany'soperations.Duringthereportingperiod,thecompanydidnotfaceanypenaltiesresultingfromviolationsrelatedtoinformationdisclosure.APsystemscontinuallyadvancesitsinvestorrelationsmanagementthroughtheformulationoftheInvestorRelationsManagementSystem,whichstandardizesthecompany'sinvestorrelationspractices.Thissystemfacilitatesongoingdeepeningofcommunicationchannelswithinvestors,fosteringabetterunderstandingandalignmentwiththecompany'svision.Sucheffortslaythegroundworkforestablishingalong-term,stableandmutuallybeneficialpartnership,therebymaximizingcorporatevalueandshareholderreturns.Thecompanyplacessignificantemphasisoninvestorrelationsmanagement,continuallystrengtheningconnectionsandinteractionswithinvestors.Throughdiversechannelsincludinginvestorhotlines,emails,the"ShanghaiStockExchangee-Interaction"platformandinvestorforums,thecompanyenhancescommunicationandengagementwithinvestors.Itearnestlylistenstoinvestorfeedbackanddiligentlysafeguardstheirlegitimaterightsandinterests.Duringthereportingperiod,thecompanyhosted4investorforums,conducted1on-siteinvestorsurvey,receivedandrespondedto400investorcalls,andprovidedanswerstoinvestorqueries52timesthroughtheShanghaiStockExchangee-Interactionplatform,achievinga100%responseratetoinvestorinquiries.InformationDisclosureInvestorCommunicationInformationDisclosureMethodsThemediaoutletandcorrespondingwebsiteforthedisclosureofthecompany'sannualreportsThestockexchangewebsiteforthedisclosureofthecompany'sannualreportsShanghaiSecuritiesNews:SecuritiesTimes:ChinaSecuritiesJournal:SecuritiesDaily:ShanghaiStockExchange:DuringtheReportingPeriodTheCompanyDisclosedRegularReports6PortionsTheCompanyDisclosedTemporaryAnnouncements62PortionsPerformanceEnvironmental,SocialandGovernance(ESG)ReportRobustSupervision,GovernanceasPriority2728BusinessEthicsDuringthereportingperiod,thecompanyrigorouslyuphelditsintegritystandardsinpersonnelselectionandemployment,facilitatingtheeffectiveimplementationofanevolvingintegrityandcomplianceframework.Notably,therewerenolitigationincidentsassociatedwithcorruption.Furthermore,thecompanyachievedasigningrateof93.55%foranti-commercialbriberyandintegrityagreementswithsuppliers.Partymembersandcadresactivelypromoteacultureofintegrity,embeddingcleangovernancepracticesintoeveryaspectofgrassrootsmanagementactivitiesandmarketoperations.Wediligentlyprotectemployees'righttoinformation,encouragingtheirwiderparticipationtoensurethatoureffortsinPartydisciplineandcleangovernanceyieldsubstantialresultsinpracticalterms.LeveragingMechanismsforEthicalPracticesWeemphasizetheconceptof"dualresponsibilitiesforoneposition"whereemployeesareexpectednotonlytofulfilltheirjobdutiesbutalsotoupholdethicalself-discipline.Specificintegrityeducationpro。

3. gramsareimplementedforeachjobrole,andadynamic,multi-facetedsystemofpreventivemeasuresisestablishedandenhancedtopreventanderadicateinstancesofnon-complianceandmisconduct.Thiscultivatesaworkenvironmentcharacterizedbyintegrityanddiligence,integratingethicalprinciplesintothecoreofourcorporateculture.PromotingEthicalConductinJobRolesThecompanyplacesutmostimportanceonethicalbusinesspractices,strictlyadheringtonationallawsandregulationsconcerninganti-bribery,anti-fraudandanti-extortionmeasures.Incriticalareaslikeprocurement,specializedpersonnelareassignedtoconductrigorousmonitoring,establishingatransparentoperationalframeworkthatinvitespublicoversightandsafeguardsthecompany'sethicalreputation.Furthermore,thecompanyupholdsprinciplesoffaircompetition,strictlycomplyingwithpertinentregulationssuchastheAnti-UnfairCompetitionLawofthePeople'sRepublicofChinaandtheAnti-MonopolyLawofthePeople'sRepublicofChina.Byparticipatinginmarketcompetitionunderequitableconditions,thecompanycontributestofosteringafairandequitablebusinessenvironment.Thecompanyprioritizesanti-moneylaunderingeffortsasavitaltaskinupholdingitscorporatereputationandensuringfinancialsecurity.Implementingacomprehensiveanti-moneylaunderingstrategynotonlybenefitsthecompany'slong-termsustainabilitybutalsomakesapositiveimpactonbroadersocietaleffortstocombatmoneylaundering,therebypromotingthestabilityandintegrityoffinancialmarkets.Inaddressingcorruption,thecompanyadoptstangiblemeasurestoreinforceitsanti-corruptioninitiatives.Thisincludesdisseminatinganti-corruptionknowledgethroughvariouschannels,enhancingemployees'anti-corruptionawareness,andpreventingcorruptpracticesattheirroot.Specificmeasuresundertakeninclude:Environmental,SocialandGovernance(ESG)ReportRobustSupervision,GovernanceasPriority2930EnvironmentalConservationforFutureCollaborationEnvironmental,SocialandGovernance(ESG)ReportEnvironmentalConservationforFutureCollaboration3132LectureonCleanEnergyinPhotovoltaicPowerGenerationEmphasizingGreenManagementSinceitsestablishment,APsystemshasbeenactivelyrespondingtoglobalclimatechangeandadvancingthegoalsof"3060"carbonpeakingandcarbonneutrality.Upholdingthemissionof"DrivingTowardsaZero-CarbonFuture,Co-CreatinganIntelligentLife",thecompanyhasidentifiedandcollectedrelevantenvironmentalcomplianceobligationswhileconductingregularassessmentsofcompliancestatus.APsystemsiscommittedtoasustainabledevelopmentpathfocusingonenvironmentalprotection,low-carbonstrategiesandenergyefficiency.Alignedwiththeprinciplesofgreendevelopment,thecompanyadherestonationalenvironmentalprotectionpolicies,guidelinesandlegalregulations.Environmentalprotectionisacoreconsiderationacrossitsproductionoutsourcingmodelandresearchandoperationalmanagementlocations,ensuringminimalenvironmentalimpact.ThecompanyplacessignificantemphasisonenvironmentalprotectionandstrictlyadherestoregulatoryframeworkssuchastheEnvironmentalProtectionLawofthePeople'sRepublicofChinaandLawofthePeople'sRepublicofChinaonEnvironmentalImpactAssessment,therebyenhancingitsenvironmentalmanagementcapabilities.Thecompany'smainproductionoutsourcingfacilitieshaveachievedISO14001certificationforenvironmentalmanagementsystems.Duringthereportingperiod,thecompanyhasnotincurredanyenvironmentalregulatorypenalties.APsystemsisdedicatedtoenvironmentalconservationandactivelyconductsactivitiestopromotegreenawarenessandadvocateforlow-carbonenvironmentalprinciples.Withoveradecadeofexperienceinthesolarenergyindustry,thecompanyupholdsitscorporatesocialresponsibilityandshowsastrongcommitmenttopublicwelfareendeavors.APsystemswasinvitedtodeliveranengagingandinformativelecturetitledCleanEnergyinPhotovoltaicPowerGenerationtofourth-gradestudentsattheinternationaldepartmentofPekingUniversityExperimentalSchool(Jiaxing).Thelectureaimedtodeepenthestudents'understandingofsolarenergy'smysteriesandtheimportanceofenergyconservationandenvironmentalprotection.Throughinteractiveactivitiessuchashands-oncrafts,thelecturealsosoughttonurturethestudents'abilitytothinkcriticallyandinnovate.Duringtheinteractivesessions,APsystemsconveyedtheprinciplesofgreen,low-carbonenvironmentalprotectionandignitedthestudents'curiosityandinterestinscientificknowledge.Thisenjoyableandeducationalapproachaimedtofosterthestudents'senseofbelongingtoenvironmentalprotectionandscience,encouragingthemtobecomeavisionary,ambitiousandresponsiblenewgeneration.Thecompanyactivelyrespondstothenationalgreeninitiativebyconductingregularmonitoringofpollutantemissions.Sinceitsestablishment,thecompanyhasnotencounteredanyenvironmentalpollutionincidents.EnvironmentalProtectionGreenSocialInitiativesDuringthereportingperiodTheCompany'sTotalElectricityConsumptionkilowatt-hours726,922TheTotalWaterUsagetons487CertificateofEnvironmentalManagementSystemforManufacturingOutsourcingFacilitiesPerformanceEnvironmental,SocialandGovernance(ESG)ReportEnvironmentalConservationforFutureCollaboration3334From"MultipleOrientations”to"MorePowerOutputs”withAPsystemsMicroInvertersExpandingGreenBusinessInitiativesAPsystemsisadvancingtheexpansionofitsgreenbusinessinitiativesthroughamultifacetedapproach.Thisincludestheimplementationofcutting-edgegreentechnologiesandtheaccelerationofintelligentgreenupgrades.Thesestrategicmeasuresilluminateatransformativepathcharacterizedbyenhancedquality,powerandefficiency,therebyfacilitatingthecompany'ssustainableandhigh-qualitydevelopment.Integratedphotovoltaicenergystoragerepresentasignificantmarkettrend.Byincorporatingstoragemodulesintotheinvertersystem,itbecomespossibletointegratefunctionalitiessuchasgrid-connectedphotovoltaicpowergenerationandenergystoragestations.Thecompanyisstrategicallyfocusingontheresearchanddevelopmentofcoretechnologiesinenergystoragetransformationequipment,aligningwithindustrytechnologicaladvancements.Thiseffortisaimedatexpandingthecompany'sbusinessscopeandidentifyingnewavenuesforprofitgrowth.Thecompanyisactivelyresearchinganddevelopingenergystorageproductstomeetthemarketdemandforintegratedphotovoltaicenergystorage.KeyproductdevelopmentsincludeAC-coupledenergystorageinvertersdesignedforlow-voltagebatteryinput.Notableprojectsalreadydevelopedinclude"SmartEnergyStorageSystemsBasedonMicrogrids","ACBatteryMulti-FunctionInverter","MobilePowerPhotovoltaicEnergyStorageSystem"and"Three-PhaseGrid-ConnectedandOff-GridInverterCharger",atthesametime,SuccessfulDevelopmentandMarketDeploymentof100kW/215kWhand200kW/402kWhEnergyStorageProductsforIndustrialandCommercialSystems.Regardingintelligentdisconnectorsproducts,thecompanyhasdevelopedexpertisein3coretechnologies:high-integrationphotovoltaicmoduledisconnectorcontrolchipdesign,high-powerdual-unitphotovoltaicmoduledisconnectorcontroltechnologyandlarge-scaledisconnectorsystemapplicationtechnology.Leveragingthesecorestrengths,thecompanybecamethesecondglobalmanufacturertointroduceintelligentdisconnectorscompliantwithSunspecindustrystandardsfortheU.S.marketbytheendof2019.ThisachievementwasmadepossiblebytheincorporationofindependentlydevelopedintelligentdisconnectorASICspecializedchips,resultinginhigherlevelsofintegrationandreliability.Thephotovoltaicindustry,amajorpropellingforceinachievingglobalzero-carbongoals,holdsimmensevalueinenergydeploymentstrategies.Inthislandscape,anewtypeofPVapplicationhasemerged-theDIYsmall-scalePVsystem.Leveragingtheextensiveexpertiseandseizingmarketopportunities,APsystemshasintroducedthe"EZ1SeriesMicroInverterwithWi-FiandBluetoothdualcommunicationmodes".Thesesystemsnolongerrequireprofessionalinstallerstoconducton-sitesurveys,proposesolutions,orhandleinstallationandconstruction.Instead,end-userscanindependentlycarryoutDIYinstallationofthepowerstation.ThelaunchoftheEZ1seriesmarksanothersignificantbreakthroughinthemicro-inverterfield,simplifyingtheinstallationandapplicationofphotovoltaicsystemsandtransformingtheminto"smarthomes",therebypromotingthepenetrationofphotovoltaicsasahouseholdappliance.ThislaunchholdsstrategicimportanceforAPsystemsasitexpandsitsproductportfolio,providinganovelsolutionforDIYsmall-scalePVapplications.Italsocomplementsitscomprehensiveecosystemstrategycenteredaround"distributedPV+energystorage",withmicroinvertersservingasthecoretechnology.Incontrasttoconventionalphotovoltaicsystems,theAPsystemsmicroinvertersystemutilizesaparallelcircuitdesignwithindependentMaximumPowerPointTracking(MPPT)capability.Thisapproacheliminatesthe"weakestlink"issue,significantlyenhancingtheeffectiveroofareautilization.EvenwhenPVmodulesareinstalledonroofsurfaceswithdifferentorientations,thesystemoptimizeseachmodule'soutputnearthemaximumpowerpoint,resultinginincreasedoverallpowergeneration.Thistechnologyresolvesthechallengeofbalancing"multipleorientations"and"multipleinstallations",leadingtoimprovedpowergenerationefficiency.Asshowninthefigurebelow,thenumberdisplayedoneachmodulerepresentsthedailyelectricitygeneration.Onaparticularday,theentirePVsystemgenerates67.32kWhofelectricity.Incontrast,ifthesystemwereusingatraditionalstringinverter,thepoweroutputofthesixroof-mountedmoduleswouldbeconstrainedbythelowest-performingmoduleinthestring,generatingonly1.98kWh.Consequently,thesystem'sdailypowergenerationwouldbereducedto59.4kWh,nearly8kWhlessthanthemicroinvertersystem.Thisrepresentsalossofover13%inelectricitygeneration.TheexceptionalperformanceoftheAPsystemsmicroinverterhasgainedsignificantmarketrecognition,positioningtheprojectasapivotalexampleoflocallow-carbondevelopment.EnergyStorageSystemsMicroInvertersIntelligentDisconnectorsDistributedPhotovoltaicsDistributedWindPowerIntelligentEnergyIntegratedEnergyIntegratedPhotovoltaicEnergyStorageandChargingHydrogenStorage,FuelCellsDigitalEnergyBigData,BlockchainAdvancedMeteringAdvancingtheEstablishmentofaControllableIntelligentEnergySystemEnvironmental,SocialandGovernance(ESG)ReportEnvironmentalConservationforFutureCollaboration3536"PVCurtainWallAdaptabilityResearch"SymposiumBuilding-integratedphotovoltaicsrepresentasignificantformofdistributedphotovoltaicswithsubstantialgrowthprospects.APsystemsremainscommittedtoinnovation-drivenempowerment,strivingtodeliverenvironmentallysafetechnicalsolutions.Thecompanyactivelyadvancesitstechnologicalinnovationframework,tacklingcoretechnologicalchallengesandtransitioningtowardsindustrialapplications.Inalignmentwiththedigitalizationandintelligencetrends,APsystemsconstructsanopenecosystem,focusesonaddressingindustrychallenges,enhancesinnovationefficiency,andupgradesitsofferingstocreatesaferandmoreintelligentdistributedphotovoltaicsolutions.OnJuly24th,ajointannouncementfromsevenChineseministriesintroducedtheGreenBuildingCreationActionPlan,whichtargetsagreenbuildingshareofover70%inurbannewconstructionsby2022.Theplanmandateslocalgovernmentstodraftactionplansandsetobjectiveswithinthestipulatedtimeline.GiventhatChina'sbuildingsectoraccountsforone-thirdofthenation'stotalenergyconsumption,Building-integratedPhotovoltaics(BIPV)emergesasapivotalapproachtomeetgreenbuildingstandards,positioningitasakeymarketsegmentforphotovoltaicapplicationsinthefuture.Inresponse,APsystemsconvenedasymposiumfocusingonthedisseminationandpromotionofBIPV,withaspecificemphasisonPVcurtainwalls.Duringtheevent,thepresenterprovidedanextensiveoverviewofAPsystems'researchandindustrializationeffortsinMLPEmodule-levelpowerelectronicstechnology.Theyalsodiscussedthecompany'soverseasexpansionstrategy,highlightingtheestablishmentofsubsidiariesinregionsliketheUnitedStates,Europe,Australia,andSouthAmerica.ThisglobalpresencehaspositionedAPsystemsastheworld'ssecond-largestsupplierofmicro-inverterproducts,contributingtoasalesandservicenetworkacrosstheglobe.PhotovoltaicProjectConstructionAPsystems'PhotovoltaicProjectConstructionStatusThe495kWBIPVCarportPhotovoltaicProjectinHainingwasconnectedtothegridinDecember2022.Theprojectprimarilyinvolvesinstallationsontheroofsofcarportswithinthepark.Itoperatesinamodeofself-consumptionwithsurpluselectricitybeingfedbackintothegrid.Theindustrialparkconsistsofnumerousofficeandproductionbuildingswithhighelectricitydemand.Therefore,thegreenelectricitygeneratedbythephotovoltaiccarportnotonlypowerschargingstationsbutalsohelpsmitigatetheoverallelectricitydemandofthepark.Comparedtotraditionalstringinvertersystemsundersimilarconditions,theQT2Dcangenerateanadditional5%to25%ofelectricity,resultinginclearfinancialbenefitsandacontinuoussupplyofgreenelectricityforthepark.HainingKinConyKinCony's277.2kWindustrialandcommercialphotovoltaicprojectwasgrid-connectedinJune2023.Thisprojectingeniouslyintegratesvariousareassuchasfactorycarportsandroofs,includingconcreteroofs,coloredsteeltileroofsandBIPVphotovoltaiccarports,maximizingtheavailableinstallationareaandachievingfullutilizationofspace.TheprojectexclusivelyemploysAPsystems'QT2Dmicro-inverterswithanoutputpowerof3,520W,seamlesslyintegratinggreenenergyintoitsdevelopmentandrealizinglow-carbongoalsthroughtechnologicalinnovation.YanguanTownThe250.8kWYanguanRuralClusteredResidentialPhotovoltaicProject,whichwasconnectedtothegridinJune2023,featurestheexclusiveuseofAPsystems'latestgeneration20Ahigh-current,high-powermicro-inverterQT2D.Thisprojectspansmultipleareasandencompassesvarioustypesofhousingconstructions,withatotalof57installations.APsystems'QT2Dmicro-inverterpossessesamodulardesignthatisplug-and-play,ensuringeaseofinstallationandoptimalspaceutilizationwhileaccommodatingdifferentinstallationorientationsandangles.Itsone-to-eightconnectionmethodallowsforsimultaneousconnectionto8high-powermodules,significantlyreducingtheper-wattcostanddeliveringoutstandingcost-effectiveness.LianGuanTextileLianGuanTextile's1.1MWindustrialandcommercialphotovoltaicprojectwasgrid-connectedinDecember2022.LianGuanTextileisarenownedlocaltextilefactorywithmultipleproductionworkshopsandasignificantamountofmachineryandequipment,resultinginhighenergyconsumptionduetoitshighloaddensityandsubstantialelectricityusage.ThisprojectexclusivelyemploysAPsystems'QT2Dmicro-inverters,providinganoutputpowerofupto3﹐520W,makingitthehighestpowermicro-inverterintheindustry.Furthermore,theQT2Dsupportsthree-phasebalancedACoutput,furtherenhancingpowerquality,loweringsystemcosts,andofferingahighlycost-effectiveadvantage.ShenzhenThe233kWPhotovoltaicChargingStationProjectinShenzhen,connectedtothegridinJune2023,isacollaborativeeffortbetweenAPsystemsandShellGroup.TheprojectencompassesvariousapplicationssuchasrooftopphotovoltaicsandBIPVcarportphotovoltaics,allofwhichutilizeAPsystems'20Ahigh-currenthigh-powermicro-inverterQT2D.Thephotovoltaicsystemprovidesacontinuoussupplyofgreenelectricityforthedailyoperations,vehiclechargingandnighttimelightingofthechargingstation.Iteffectivelyoffsetsthestation'selectricityconsumptionthroughphotovoltaicpowergeneration,therebycontributingtothedevelopmentofintegratedphotovoltaicenergystorageandchargingsystems.Thisinitiativeservesasanexemplarydemonstrationfortheregion'spursuitofthe"dual-carbon"goalandupholdstheprinciplesforgreendevelopment.HainingLianGuanTextileShenzhenEnvironmental,SocialandGovernance(ESG)ReportEnvironmentalConservationforFutureCollaboration3738Relyingonthearchitecturalfeaturesoftheapartmentbuilding,the229kWresidentialphotovoltaicproject.Utilizesover300APsystemsmicro-invertersand622photovoltaicmodules,installedonvariousareassuchaswalls,balconiesandrooftops.Sinceitsoperation,thepowerstationhasbeenabletogenerateapproximately210,000kWhofelectricityannually,providingacontinuoussourceofcleanenergy.Furthermore,theAPsystemsmicro-invertersystem,designedwithafullparallelcircuit,standsoutforitsinherentadvantages,includingnodirectcurrenthighvoltage,ensuringcompliancewithAmericanNECstandards2017,2020and2023(690.12).Thisdesigneffectivelypreventspotentialfirehazardsandothersafetyaccidents,therebycontributingtosecurityforapartmentbuildingslocatedinthebustlingcity.NewJersey,USASeattleBrazilThe22.62kWresidentialphotovoltaicprojectinBrazilwasconnectedtothegridinDecember2022.Duringthedesignandconstructionphasesoftheproject,measuresweretakentomaximizetheutilizationoftherooftoparea.Thisinvolvedinstallingthephotovoltaicsystemacrossroofsfacingsevendifferentorientations,employingexclusivelymicro-inverterproductsfromAPsystems.Inactualoperation,themicro-invertersplayedacrucialroleinmitigatingthe"weaklink"effectwithinthesystem,therebyreducingthedegradedperformanceofmulti-orientationsetupsandenablingefficientpowergenerationacrossallroofsurfaces.The108kWphotovoltaicprojectattheWaWagasstationintheUnitedStateswasconnectedtothegridin2019.WaWa,arenownedfuelserviceproviderintheUS,maintainsstringentsafetystandardsatitsgasstations.ThedecisiontooptforAPsystemsmicro-invertersbybothWaWaandtheproject'sconstructionentitywasdrivenbytheirinherentsafetyadvantages,notablytheabsenceofhighDCvoltagesduringsystemoperation.ThisfeatureeffectivelyeradicatesthefireriskassociatedwithhighDCvoltagesinphotovoltaicinstallations.Moreover,thegreenelectricitygeneratedbythephotovoltaicsystemcontinuouslypowersvariouselectricalfacilitiesatthegasstation,leadingtonotonlyenergyconservationandemissionreductionbutalsosubstantialsavingsinelectricitycosts.Thisprojectexemplifiesaharmoniousblendofecological,social,andeconomicbenefits.ThesuccessfulcommissioningandreliableoperationofthisprojecthaveinstilledconfidenceinWaWaregardingfuturephotovoltaicgasstationprojects.Itservesasapivotalreferencepointforthedevelopmentofnearly100photovoltaicgasstationswithacombinedcapacityofapproximately10MWintheforthcomingphases.The200kWcommercialandindustrialphotovoltaicprojectinthePhilippineswasconnectedtothegridin2022.ThisprojectexclusivelyutilizesAPsystems'latestgeneration20Ahigh-currentmicro-inverterDS3.Allphotovoltaicmodulesareinstalledontherooftopsoftheenterprise.Themicro-inverterboastsauniquefeatureofnaturallylackinghighDCvoltage,whicheffectivelytacklesfirehazardsassociatedwiththeDCsideofphotovoltaicsystems.ItcomplieswiththesafetystandardsspecifiedinthePhilippineElectricalCode2017fordistributedphotovoltaics,particularlyintermsofrapidshutdownfunctionalityforrooftopphotovoltaicstations.Thisensuresutmostsafetyinrooftopphotovoltaicinstallations.Withitsemphasisonsafety-centricproductdesign,themicro-inverterisexceptionallywell-suitedfordistributedphotovoltaicapplicationsincommercialandindustrialsettingswithstringentsafetyrequirements.PhilippinesCanadaThe122kWcommercialandindustrialphotovoltaicprojectinCanadawasconnectedtothegridin2016.TheentireprojectutilizesAPsystems'micro-inverters.TheCheesefacilityconsistsofamultitudeofmachineryandequipmentwithahighloaddensityandsubstantialelectricityconsumption.APsystems'micro-invertersaredesignedwithafullparallelcircuit,boastingtheinherentadvantageofbeingfreefromhighDCvoltage,thusensuringultimatesafetyinpowerstationoperations.Furthermore,theyfeatureMaximumPowerPointTracking(MPPT)functionality,eliminatingthe"weaklink"effectinsystemoperationandreducingpowergenerationlosses.Theseattributesempowertheprocessingofdairyproductslikecheese,contributingtotheenterprise'sgreenandsustainabledevelopment.MexicoThe19.62kWcommercialandindustrialphotovoltaicprojectinJalisco,Mexico,wasconnectedtothegridin2022.TheprojectwasinstalledandconstructedbyalocalexperiencedpartnerofAPsystemsandutilizesAPsystems'micro-invertersDS3D.Withitsrobustproductcapabilities,DS3Dprovidesahigh-qualitygreensolutionforthelow-carbontransformationanddevelopmentofhigh-energy-consumingenterprises.Takingintoaccountsafety,powergenerationcapacityandintelligentoperationandmaintenance,DS3Densuresthatthephotovoltaicpowerstationbecomesavaluableassetfortheenterprise,bringingcontinuouseconomicbenefits.Thispowerstationalsoservesasatypicalgreenprojectcombiningphotovoltaicswiththecommercialandindustrialsectorsinthelocalarea,demonstratingandpromotingthedevelopmentofcommercialandindustrialphotovoltaicsintheregion.PhilippinesCanadaMexicoSeattleBrazilNewJersey,USAEnvironmental,SocialandGovernance(ESG)ReportEnvironmentalConservationforFutureCollaboration3940GreenAirConditioningPracticesGreenLightingPra。

4. cticesThecompanyupholdsthephilosophyof"promotingenvironmentalawarenessandadvocatingforagreenlifestyle",activelyimplementingpracticessuchas"conservingwater,savingenergyandreducingpaperusage"initsdailyofficeoperations.Itisdedicatedtotheharmoniousdevelopmentoftheenterpriseandtheenvironment,adheringstrictlytolawsandregulationssuchastheEnvironmentalProtectionLawofthePeople'sRepublicofChina.UtilizingtheISO14001environmentalmanagementsystemstandardasafoundation,thecompanyhasadvanceditsenvironmentalmanagementworkthatseamlesslyintegratesgreendevelopmentintoitsdailyofficepractices.Ensuringthequalityofdailyworkwhileminimizingtheconsumptionofdisposableofficesuppliesisintegraltoourcommitmenttoenvironmentalprotection.Westrivetomake"green"thepredominantthemeinourcompany'soperations,demonstratingourdedicationtoenvironmentalawarenessandsustainabledevelopment.Throughstrategiessuchasdouble-sidedprinting,transitioningtoelectronicdocumentswheneverpossible,andformulatingathoughtfulconsumablesprocurementplan,weactivelyreducematerialconsumptionandconserveresources.OptimalTemperatureSettings:Setcoolingtemperaturesnotlowerthan26°Cduringsummerandheatingtemperaturesnothigherthan20°Cinwinter.SealedEnvironmentwithAirConditioning:Keepofficedoorsandwindowsclosedwhileusingairconditioningtomaximizeitsefficiency.Ifventilationisnecessary,turnofftheairconditioningsystemtopreventwastefulpracticesofusingairconditioningwithwindowsanddoorsopened.EfficientUsagebyShuttingDownWhenUnoccupied:Adheretothe"userresponsibilityprinciple",whereindividualsareaccountableforturningofftheairconditioningsystemwhenleavingthepremises,ensuringa"stopwhenvacant"policy.OptimalLightingLayoutDesign:Implementawell-thought-outlightinglayoutthatmaximizestheuseofnaturallightandcomplementsitwithartificiallighting,reducingtheoverallneedforartificialillumination.Turnthelightsoffwhenleaving.avoidleavinglightsonduringdaylighthours,usinglong-lastingorpermanentlightsunnecessarily,orleavinglightsoninunoccupiedareas.Minimizeboththedurationandquantityoflightingusage,andremembertoturnofflightswhenleavingaroom.AdoptionofEnergy-EfficientLightingFixtures:Whenchoosinglightingequipment,prioritizefactorssuchasluminousefficiency,lifespan,colorrenderingindexandenergyconsumption.Strivetoreduceenergyusagewhilemaintainingoptimallightingquality.SustainingGreenOperationsThecompany'sofficewastemanagementadherestotheprinciplesofwastereduction,resourcerecoveryandenvironmentalsafety.Throughinitiativessuchaswastesegregationandrecyclingofobsoleteequipmentandelectronicdevices,effortsaremadetominimizewastegeneration,promoteresourcecirculation,protecttheenvironment,andachievesustainabledevelopment.Additionally,thesanitationcompanyconductsdailyscheduledwastecollectionintheparkareaandemployseitherlandfillingorincinerationmethodstodisposeofthewasteappropriately.GreenOfficePracticesEnergyConservationWasteDisposalPracticesRecyclingandDisposalofObsoleteEquipmentandElectronicDevicesTheapplicantcompletingtheOAequipmentscrappingform.Approvalfromthefinancedepartmentisrequiredbeforetheequipmentcanbescrapped.Theapplicantthencoordinateswiththewarehouseandfinancedepartmenttojointlymanagethescrappingprocess.Engageprofessionalandcertifiedthird-partyservicesforcentralizedrecycling.Metal(iron,aluminum,andcopper-containingwastecircuitboards):Segregateandclassifyaccordingly.Circuitboards:Subjecttophysicalcrushing.DisposalProcedureDisposalSolutionWasteDisposalWasteSegregationEnvironmental,SocialandGovernance(ESG)ReportEnvironmentalConservationforFutureCollaboration4142IndustrialProsperityandValueCo-CreationEnvironmental,SocialandGovernance(ESG)ReportIndustrialProsperityandValueCo-Creation43447.37%2023R&DExpenditureRatioofR&DExpensestoCompanyRevenueResearchandDevelopment(R&D)InnovationR&Dinnovationservesasapivotalengineforenterprisestoconsistentlymaintainmarketcompetitiveness.Thisprocessencompassestheentirecoursefromfundamentaltheoreticalexplorationtotangibleproductdevelopment.Amidstswiftlyevolvingmarketlandscapes,companiespersistentlyallocateresourcestowardsresearch&developmentandinnovationinitiativestoalignwithmarketdemandsandsustaintheirleadershipposition.Thecompanyhasestablishedamarket-drivenindependentresearchanddevelopmentmodel,focusingoninnovativeadvancementsinhardwarecircuittopology,softwarecontrolalgorithms,communicationandbigdataprocessingtechnologies.Thisapproachhasledtosuccessfuldevelopmentofmodule-levelpowerelectronicsproductssuchasmicro-invertersandintelligentdisconnectors,whichhavebeencommerciallyappliedindistributedphotovoltaicpowergenerationsystemsandsmartgrids.Furthermore,thecompanyadoptsaproject-basedR&Dapproachthatintegratesmarketfeedbackandsuggestionsfromvariousdepartments.Projectsundergotechnicalfeasibilityanalysesbeforeinitiation,andcomprehensiveplanningduringdesignreviewsensuresoptimallevelsofproductperformance,quality,cost-effectivenessandR&Defficiency.ThecompanypossessesaninternationallyacclaimedR&Dteamthatisanchoredinadvancedresearchprinciplesandisdedicatedtoindependentresearchandinnovation.Thisteamcomprisesindividualswithrobustprofessionalbackgroundsandextensiveindustryexperience,providingasolidtalentfoundationforthecompany'sR&Dinnovationsintechnologyandproductdevelopment.In2014,theywererecognizedasthe"KeyEnterpriseTechnologyInnovationTeam"byJiaxingCity.Asoftheendofthereportingperiod,theteamcomprises210R&Dprofessionals,constituting51.98%ofthetotalworkforce,amongwhich190havebachelor'sdegreesorhigher,representing90.78%ofthetechnicalstaff.TostreamlineR&DprojectmanagementandinspireproactiveengagementamongR&Dpersonnel,thecompanyhasestablishedtheR&DCenterProjectAssessmentandRewardSystem.Thissystemensuresthehigh-quality,efficientandcost-effectivecompletionofthecompany'sR&Dtasks.Annually,thecompanyconductsacomprehensiveperformanceevaluationencompassingthreemainareas:goalmanagement(40%),projectexecution(20%)andindividualbehaviorandfunctions(40%).ThiscomprehensiveandimpartialevaluationprocessassessesthecontributionsofeachR&Dprofessionalandofferscorrespondingrewards,therebypromotingR&Dinnovationandadvancementwithinthecompany.Thecompanydeeplyunderstandsthattechnologicalinnovationisthekeydrivingforceshapingthefuture.Itremainssteadfastinitscoreprincipleofinnovation-drivendevelopmentandisdedicatedtoestablishingarobust,systematicandefficientR&Dinnovationsystem.Byattractingindustryelites,cultivatingtop-tierteamsandunlockinginnovativepotential,thecompanyaimstosignificantlyenhanceitsinnovationcapabilitiesandcorecompetitiveness.Leveragingitsexpertiseinsemiconductorandchiptechnologies,thecompanyisadvancingitsR&Deffortsinmodule-levelpowerelectronicsandchips,therebyenhancingbusinessindependenceandproductcompetitiveness.Simultaneously,itisfocusingonupgradingdistributedphotovoltaicpowergenerationsystemtechnologiestoreducemicro-invertercostsandimprovemarketacceptance.Thecompany'sinverterproductsarealreadyleadingtheindustryby2-3years,withthe20Ahigh-currentproductsettinganindustrybenchmark.Intherealmofintelligentdisconnectors,thecompanyhasindependentlydevelopeddedicatedcontrolandalgorithmASICchips,enhancingproductintegrationandreliability,andleadingindomesticshipments.Thecompany'scomprehensiveenergystorageofferingsincludemass-producedsingle-phaseresidentialenergystorageseriessoldinEuropeandAmerica.ResearchandDevelopment(R&D)andInnovationManagementSystemZhejiangProvinceAPsystemsMicro-InverterResearchInstituteExpertsCommitteeOfficeTechnicalDepartmentEMADesignDepartmentOperationsDepartmentQualityTeamProcurementTeamTechnicalServicesTeamStructuralDesignTeamCertificationTeamTestingTeamGroupThreeGroupTwoGroupOneECUTeamCommunicationTeamInverterTeamArchivesRoomTechnologyProjectsTeamIntellectualPropertyOfficeFinanceOfficeComprehensiveManagementOfficeStrategicOfficeR&DDataStartR&DProjectInitiationDesignInputDesignInputReviewDesignOutputReviewResearchandDevelopment(R&D)ProcessResearchandDevelopment(R&D)OrganizationalChartDesignOutputProductPrototypeDesignDevelopmentVerificationR&DConfirmationEndCNY104.71millionEnvironmental,SocialandGovernance(ESG)ReportIndustrialProsperityandValueCo-Creation4546WithafocusonMLPEmodule-levelpowerelectronicstechnologyforoveradecade,thecompanyremainssteadfastinitscommitmenttotechnologicalinnovationasitscoredevelopmentstrategy.Weneverceaseinoureffortsforevolving,startingfrompioneeringmulti-unitmicro-inverterarchitecturestodevelopingmicro-inverterproductstailoredtotheneedsofintelligentgriddispatch.Wehavealsointroduced20Ahigh-currentandhigh-powermicro-inverterproducts,consistentlypositioningourselvesattheforefrontoftechnology.Thesegroundbreakingadvancementsprovideouruserswithsafer,moreefficientandintelligentphotovoltaicproducts,contributingpositivelytothetransformationandsustainabledevelopmentoftheglobalenergystructure.Duringthereportingperiod,thecompanyincreaseditsR&Dinvestmentandsuccessfullyintroducedsixnewcoretechnologies.Thisexpansionfurtherenhancesourtechnicalcapabilitiesandwidensourapplicationdomains,providingrobustsupportforongoingproductinnovationandenhancingourcompetitivenessinthemarket.ThroughastrategicpartnershipwithSouthernAirlines,thecompanyhasjointlydeveloped"High-FrequencyPlanarTransformersandPlanarPowerInductorsforPhotovoltaicMicroInverters".Thiscollaborativeefforthasresultedinasignificanttechnologicalbreakthroughforthecompany'sinverterproducts,particularlyintermsofachievinghighenergydensityandefficiency.Furthermore,bothpartieshavesuccessfullyaddressedchallengesin"DesignandControlTechnologyofThree-PhaseEnergyStorageSystems",therebyenhancingthecompletenessofthecompany'senergystoragemachineproductline.Thecompanyissteadfastinitscommitmenttomaintainingandelevatingproductmarketcompetitivenesstomeettheevolvingdemandsofthemarket.Movingforward,thecompanywillactivelyseekstrategiccollaborationswithdomesticandinternationalresearchinstitutions,highereducationestablishmentsandglobalenterprises.Throughcontinuousexplorationandtheintegrationofcutting-edgetechnologiesandresearchoutcomes,thecompanyaimstoreinforceitstechnicalcapabilities.Thecompanyrigorouslycomplieswithintellectualpropertylawsandregulationsandhasimplementedacomprehensiveintellectualpropertymanagementsystem.Internally,thecompanycontinuallyeducatesitsemployeesonintellectualpropertyknowledgetoenhancetheirawarenessoftheintellectualpropertyprotection.Furthermore,thecompanyactivelyengageswiththemarketbyadvocatingtheimportanceofintellectualpropertyprotectiontoclientsandpartnersthroughvariouschannelssuchasseminarsanddiscussions.Thecompanyiscommittedtoplayingapositiveroleinadvancingintellectualpropertyprotectionprocessesandaimstocontributetofosteringanenvironmentthatrespectsandsafeguardsintellectualproperty.Tostimulateinnovationvitality,propeltechnologicaladvancement,andstrengthenthecultivation,maintenanceandapplicationofproprietaryintellectualproperty,whileharnessingthepivotalroleofthepatentsystemindrivingenterprisedevelopment,andtoclarifytherightsandinterestsrelationshipbetweenemployees'inventiveachievementsinresearchandotherinnovativeactivitiesandthecompany,thecompanyhasformulatedthePatentApplicationandReward/PenaltyMeasures.ThisframeworkisbasedonrelevantprovisionsoftheLawofthePeople'sRepublicofChinaonScienceandTechnologyProgress,thePatentLawofthePeople'sRepublicofChinaandtheCivilCodeofthePeople'sRepublicofChina,combinedwiththecompany'sspecificcircumstances.Itaimstoincentivizeandsafeguardinnovativeachievements,injectingasteadystreamofinnovation-drivendynamicsintothecompany'slong-termdevelopment.Thecompanyisrecognizedasahigh-techenterpriseandwasofficiallyaccreditedbytheMinistryofIndustryandInformationTechnologyinMay2016asmeetingthePhotovoltaicManufacturingIndustryStandardConditions(FifthBatch).Ithasalsobeenhonoredwithprestigioustitlessuchas"NationalElectronicInformationIndustryEnterprisewiththeGreatestDevelopmentPotential"and"ZhejiangProvincePatentDemonstrationEnterprise".Furthermore,thecompanyhasestablishedinstitutionsincludingtheZhejiangProvinceAPsystemsMicro-InverterResearchInstitute,ZhejiangProvinceEnterpriseTechnologyCenterandZhejiangProvinceHigh-TechEnterpriseResearchandDevelopmentCenter.R&DAchievementsandHonorsIndustry-Academia-ResearchCollaborationIntellectualPropertyProtectionIntellectualPropertyProtectionMeasuresUnifieddeclaration,managementandmaintenanceofintellectualproperty,includingpatents,softwarecopyrightsandtrademarks,withaparticularfocusonpromptlyfilingforinnovativepointsandtechnologicalachievementsresultingfromthecompany'sproductdevelopmentandtechnologicalinnovationactivities.Commitmenttonon-infringementofothers'propertyrights,refrainingfromusingpatentedtechnologiesownedbyothers,manufacturing,using,selling,ordisseminatingcounterfeitproducts,andavoidingcounterfeitingorimitationofothers'trademarks,productidentifiersanddesigns.Vigorousoppositiontoillegalactivitiesthatinfringeuponothers'propertyrights,activelyreportinganyinfringementsinvolvingpropertyrights,andcooperatingactivelywithgovernmentaleffortstorestrain,investigateandcombatpropertyrightsviolations.Participationinpublicawarenesscampaignsforintellectualpropertyrightsprotection,collaboratingwithstakeholdersacrosssocietytopromotethehealthyandsustainabledevelopmentoftheintellectualpropertyindustry.ImplementationofIntellectualPropertyandConfidentialityAgreements,aswellasNon-CompeteAgreements,withemployees.CertificateofHonorAsoftheendofthereportingperiodInventionPatentsItems84UtilityModelPatentsItems31DesignPatentsItems21SoftwareCopyrightsItems30DuringthereportingperiodNewInventionPatentsItems4UtilityModelPatentsItems4SoftwareCopyrightsItems9PerformanceMicrogridinstallationencompassescomplexproceduresthatcanbechallengingforuserstoself-install.Thecompanyharnessesnoveltechnologytosimplifythisprocess,enablingseamlessdevicecontrolthroughsmartphoneapplications,therebystreamliningoperations.Additionally,itoffersself-installationconfigurationcapabilitiestopromotetheintegrationofsolarenergystorageproductsintosmarthomes.Self-ApplicationScenarioControlTechnologyHybridinvertersystemsposeriskswithhigh-voltageinputs,whiletheirlow-voltageversionssufferfromreducedefficiencyandreliability.Thecompanyemploysthird-generationwide-bandgapsemiconductortechnologyalongsideadvancedcontrolalgorithmstoelevateefficiencyatlowervoltages,optimizeoperationalmodesandenhancesystemreliability.Low-VoltageHybridInverterControlTechnologyConventionalmicroinvertersoftenadoptatwo-stagetopology,resultinginhighcostsanddecreasedpowerdensity.Leveragingresonancetechnologyforsoft-switchingcapabilities,thecompanyachievesheightenedefficiencyandpowerdensity.Thisinnovativeapproachfacilitatesthedevelopmentofamorecompactsingle-stagemicroinverter,effectivelyaddressingthechallengesassociatedwithtwo-stagemicroinverters.Single-StageSeries-ResonantMicroInverterControlTechnologyPriortotheconstructionofaphotovoltaicpowerstation,thereisaneedforprofessionaldesignandevaluation,aprocessthatisbothcomplexandcostly.Thecompanyemploysimageprocessing,simulationandvirtualizationtechnologiestoenablerapidonlinedesignandvirtualpresentationofpowerstations,resultinginthegenerationofsimulationevaluationreports.DesignandSimulationTechnologyforIntegratedPhotovoltaicPowerStationsTheintegrationtechnologyforstringenergystoragecabinetfeaturesadiverserangeoffunctionalmodules,offeringflexibledesignoptionssuitableforvariousoperationalscenarios.Throughtheadoptionofspecializedconnectionmethods,weenhancethedischargecapacityofbatterycellsandoptimizeeconomicviabilityofthesystem.Thisintegratedsystemensurescluster-widemanagement,ensuringconsistencyandfacilitatingscalabilityorsupplementarycharging.IntegrationTechnologyforStringEnergyStorageCabinetsThestringenergystoragesolutionsofferflexibleconfigurationoptionsandstreamlinedinstallationprocedures,reducingconstructioncomplexityandlandusage.Byavoidingtheperformancedegradationassociatedwithbatteryparallelconnections,thesystemreliabilityhasbeenstrengthened.StringInverterControlTechnologyEnvironmental,SocialandGovernance(ESG)ReportIndustrialProsperityandValueCo-Creation4748AssociationNameAssociationLevelPositionNo.APsystemsnotonlyprioritizesitsowngrowthbutalsostrivestocollaborativelyadvancetheindustrywithupstreamanddownstreamenterprises.Thecompanyactivelyengagesinformulating3certificationtechnicalspecificationsand16national,industry,orgroupstandards.Notably,thecompanytooktheleadindraftingthePVgrid-connectedmicroinvertergroupstandard.Thesestandardsnotonlystandardizeindustrypracticesanddrivetechnologicalprogressbutalsoofferrobustsupportforindustryupgradingandinternationalcompetitiveness.Servingasapivotalforceforindustrydevelopment,thecompanyhasmadesubstantialcontributionstotheflourishingofthesector.Inaefforttoenhancecommunicationandcollaborationwithindustrycounterparts,thecompanyhasgainedmembershipwith13industryassociationsspanningdiversesectors.Theseassociationsfocusonareassuchastechnicalexchange,marketpromotion,andpolicyresearch.Throughthesepartnerships,thecompanyremainsabreastofindustrydynamicsandregulatoryshifts,engagesinmeaningfulexchangesandpartnershipswithfellowindustryplayers,andcollectivelyfostersindustrydevelopment.Simultaneously,leveragingtheseassociationplatformsenablesthecompanytobroadenitsinfluence,increasevisibility,andfurtherelevateitspositionwithintheindustry.TechnicalRequirementandTestMethodofGrid-connectedPVMicroInverterTechnicalRequirementsforElectricalSafetyDesignofResidentialPhotovoltaicGrid-ConnectedPowerSystemTestingandEvaluationforGridConnectedResidentialPVSystemTechnicalSpecificationsforPhotovoltaicGrid-ConnectedMicroInverterTechnicalSpecificationofPhotovoltaicModulePowerOptimizerDistributedPhotovoltaicPowerGrid-ConnectedInvertersTechnicalSpecificationofResidentialDistributedPhotovoltaicGrid-ConnectedPowerSystemResidentialString-TypePhotovoltaicGrid-ConnectedInvertersTechnicalSpecificationsforDocumentation,InspectionandTestingofGrid-ConnectedPhotovoltaic(PV)SystemAcceptanceSpecificationofBuildingIntegratedPhotovoltaicSystemsCommercialandIndustrialString-TypePhotovoltaicGrid-ConnectedInvertersApplicationProceduresforPhotovoltaicBuildingTechnologyPhotovoltaicGrid-ConnectedMicroInverterGuideforPVCurtainWallApplicationAssessmentRequirementsforGreenFactoryinPhotovoltaicInverterManufacturingIndustryComponentsandEquipmentofPhotovoltaicBuildingDeterminationofPowerGenerationSystemforPhotovoltaicBuildingGreenandLow-CarbonProductEvaluationSpecificationsforPhotovoltaicGrid-ConnectedMicro-InvertersPhotovoltaicPowerGenerationSystemInverterProductTestingSpecifications12345678910111213141516171819CGC/GF027:2013CGC/GF093:2017CTS13001-2018NB/T42142-2018NB/T42143-2018T/JX009—2018T/JX012—2018T/ZZB0854—2018T/CPIA0010—2019GB/T37655-2019T/ZZB1425—2019T/CBDA39-2020T/ZZB0229—2022T/CCMSA70228—2022T/CSTM00501—2022T/CBDA1004—2023T/CBDA1005—2023T/CIET280—2023T/CIET279—2023CertificationTechnicalSpecificationCertificationTechnicalSpecificationCertificationTechnicalSpecificationIndustryStandardIndustryStandardGroupStandardGroupStandardGroupStandardGroupStandardNationalStandardGroupStandardGroupStandardGroupStandardGroupStandardGroupStandardGroupStandardGroupStandardGroupStandardGroupStandardPropellingIndustryDevelopmentStandardNameStandardNo.StandardTypeNo.12345678910111213CleanEnergyCouncilAsianPhotovoltaicIndustryAssociationChinaPhotovoltaicIndustryAssociationNewEnergyChamberofCommerceofAllChinaFederationofIndustryandCommerceZhejiangSolarEnergyIndustryAssociationGuangdongSolarEnergyIndustryAssociationHenanNewEnergyIndustryDevelopmentAllianceHebeiPhotovoltaicNewEnergyChamberofCommerceJiangsuRenewableEnergyIndustryAssociationJiangxiEnergyAssociationPhotovoltaicBranchJiaxingPhotovoltaicIndustryAssociationHangzhouSolarPhotovoltaicIndustryAssociationPGO-PhotovoltaicGreen-ecosystemOrganizationMemberEntityMemberEntityDirectorEntityMemberEntityViceChairmanEntityMemberEntityMemberEntityMemberEntityMemberEntityMemberEntityViceChairmanEntityMemberEntityMemberEntityInternationalInternationalN。

5. ationalNationalProvincialProvincialProvincialProvincialProvincialProvincialMunicipalMunicipalIndustryEnvironmental,SocialandGovernance(ESG)ReportIndustrialProsperityandValueCo-Creation4950FullLifecycleQualityManagementProcessSystemPlanningPerformanceMeasurement&ImprovementAnalysisManagementProcessProductRealizationSupportingProcessQualityControlProcessforNewProductProductionAPsystemsupholdstheprincipleof"zero-defectproduction,zero-acceptanceofdefectsandzero-deliveryofdefects".Toachievethis,thecompanyhasestablishedandimplementedQualityAssuranceManagementProceduresandCorrectiveandPreventiveActionControlProcedures.Astringentqualityinspectionprocesshasbeenestablished,withdedicatedqualityinspectionpersonnel.Theseproceduresensurethateverymicro-inverterproductundergoesstringentqualityinspectionprocesses,includingAutomatedOpticalInspection(AOI),FunctionalTesting(FCT),AgingTesting.Additionally,advancedmanagementmethodologiessuchas"KanbanManagement","5SPrinciples"and"SixSigmaPrinciples"areemployedtofurtherenhanceproductqualityandreliability.Inanefforttoensurethesmoothimplementationandeffectiveoperationofthequalitymanagementsystem,thecompanyhasestablishedarobustorganizationalstructureforqualitymanagement.AtthetopofthisstructureistheCEO,whoservesasthehighestmanagementauthorityoverseeingthequalitymanagementsystem.Theviceoperatingofficerisdesignatedastheprimaryrepresentativeofthequalitymanagementsystem,responsibleforcoordinating,monitoringanddrivingqualitymanagementinitiativesacrosstheorganization.Additionally,theQualitySupervisorplaysacrucialroleinprovidingin-depthmanagementandguidanceinkeyareassuchasqualityassurance,supplierquality,processqualityandqualitycontrol.QualityManagementSystemCertificationProductLiabilityEnhancingproductliabilityawarenessandensuringproductqualityareindispensableresponsibilitiesofthecompany.Productliabilitynotonlyimpactsthecompany'sintegrityandreputationbutalsoplaysacriticalroleinmaintainingmarketorderandsafeguardingconsumerrights.Aresponsibleenterpriseshouldconsistentlyprioritizeproductqualitytoensureconsumersafetyandprotectionoftheirrights.APsystemsupholdsthequalitypolicyof"technologicalinnovation,continuousimprovement,excellentqualityandcustomersatisfaction",strivingtodeliverexceptionalproductsandservicestoitscustomers.Thecompanyfocusesoncoreareassuchasresearchanddevelopment,designandmarketsales,whileproductmanufacturingisconductedthroughoutsourcing.Toensurethequalityandconsistentsupplyofoutsourcedproducts,thecompanymeticulouslyselectsoutsourcingpartners,takingintoaccounttheirqualifications,credibilityandtechnicalcapabilities.Furthermore,thecompanyhasestablishedacomprehensivequalitymanagementsystem,includingprotocolssuchasOutsourcingManagementProcedureandProcessInspectionSpecificationstostandardizetheoutsourcingprocess,personnelallocation,testingprocedures,packagingandotheraspects.Throughclosecollaborationwithoutsourcingpartnersandstringentcontroloverqualityandprocesses,thecompanyachievescompletemonitoringofcriticalprocessesthroughouttheoutsourcingchain.Asoftheendofthereportingperiod,thecompanyhasobtainedISO9001qualitymanagementsystemcertification.QualityManagementSystemProductLifecycleManagementQMSTopManagementCEOQualityAssuranceSupplierQualityProcessQualityQualityControlQMSManagementRepresentativeOperationVPQualityDirectorInputOutputDocumenttheInformationSPMPCOPNewProductLaunchMeetingPreparationInitiationTrialProductionStartupProductionProcessTrackingQualityDataRecordingDataCompilationandAnalysisTrialProductionSummaryMeetingDFMOutputOrganizationalStructureforQualityManagementCustomerRequirementCustomerSatisfactionContractReviewNonconformingProductControlSupplierManagementGaugeManagementEnvironmentalManagementFacilityManagementToolingManagementHumanResourceManagementDesignDevelopmentProduction/MaterialPlanningPurchasingIncomingQualityControlWarehouseManagementMaterialPreparationProductRealizationProductMonitoringMeasurementProductProtectionDeliveryServiceDocumentRecordEnvironmental,SocialandGovernance(ESG)ReportIndustrialProsperityandValueCo-Creation5152ThecompanyhasimplementedrigorousproceduresforNon-ConformingProductControlandProductRecallManagementtoensureproductquality.Incaseofanypotentialnon-conformingproducts,thecompanypromptlyfollowstheprescribedproceduresandnotifiesrelevantpartiesoftheproductinformationpromptly.Shouldabatchofdeliveredproductsbefoundnon-conforminginquality,wewillpromptlyinitiatetheproductrecallproceduretocomprehensivelyandswiftlycontroltheaffectedfinishedproducts,therebymitigatingorpreventinglossesforthecompanyandstakeholders.Non-ConformingProductManagementSMTProductionLineDIPProductionLineFAProductionLineResponsibilitiesofEachDepartmentIntermsofoutsourcingmanagement,thecompanyemploysastringentprocesstocontrolproductquality.Itprovidesoutsourcingpartnerswithpartdrawingsandproprietarycontrolalgorithmsoftwarethatisencrypted.Outsourcingpartnersthenproceedwithhardwareassemblyandprocessingbasedontheprovidedpartdrawings,followedbytransferringthecontrolalgorithmsoftwareintothehardwarethroughICprogramming.ThecompanyutilizesadvancedproductionmanagementtechnologiesandhasestablishedtheProductIdentificationandTraceabilityManagementProcedure.ThroughautomatedShopFloorsystemscontrolanduniqueUIDnumbers,everyproduct'sproductionrecordsaretracedfromproductiontowarehousing,ensuringcompletetraceabilitythroughouttheprocess.Alltestingdataisautomaticallyuploadedtothedatabase,andcriticalprocessesareconductedusingautomatedtestingequipment,allowingreal-timemonitoringbymanagementpersonnelandeffectivelymitigatingtheriskofmissedtestsandreducingtheimpactofhumanfactorsonquality.ProductionManagementSystemShipmentManagementSystemAfter-SalesManagementSystemEMAMonitoringSystemAPsystemsTraceabilitySystemOtherDepartmentsParticipatesinandcollaboratestoensurethesuccessfulcompletionoftheproductrecallprocess.RiskManagementDepartmentResponsiblefortransmittingcustomerinformationrelevanttotherecallprocess.SalesDepartmentResponsibleforconveyingcustomercomplaintsandpromptlyinformingrelevantpersonnel.Handlescommunicationandliaisonwithcustomersduringtherecallprocess.OperationsDepartmentTheQualitySupervisorleadstheproductrecallprocessandisresponsiblefororganizingrelevantpersonneltoimplementtherecall,aswellasgaininganunderstandingoftheproductrecallstatus.Warehousingandlogisticsteamisresponsiblefortrackingthestatusofproductsintransitandconductsinspectionsofinventoryforidentifiedproblematicbatches.Qualityteamtracksthequantity,customerinformation,batchnumbersandotherrelevantinformationrelatedtoproblematicbatches;organizesdepartmentstodevelopandimplementemergencymeasuresasnecessary;tracksandoverseestheprogressoftheproductrecallwork.GeneralManagerResponsibleformakingdecisionsregardingtheinitiationoftheproductrecallprocedureandapprovingtherecallplan.Environmental,SocialandGovernance(ESG)ReportIndustrialProsperityandValueCo-Creation5354DigitalManagementSystemCustomerRightsandInterestsCustomertrustandsatisfactionarefoundationaltosustainabledevelopmentfortheenterprise.Safeguardingcustomerrightsandinterestsisn'tjustalegalmandatebutacriticalaspectofearningmarketshareandfosteringapositivereputation.Withacustomer-centricapproach,thecompanyensuresthatcustomerrightsremaininviolable,aimingtocultivatelong-termtrustandsupportforsustainedgrowth.SalesforceisanexceptionalCustomerRelationshipManagementsolutionthateffectivelyfacilitatescommunicationbetweenenterprisesandcustomers.ThecompanyprimarilyutilizesSalesforceforcustomerservicemanagement.ByleveragingSalesforce,thecustomerserviceteamgainsacomprehensiveunderstandingofcustomerneeds,enablingthemtodeliverpreciseandefficientservices.Furthermore,Salesforce'spowerfuldataanalyticscapabilitiesallowthecompanytogainin-depthinsightsintocustomerbehavior,thusprovidingrobustsupportforfuturebusinessstrategiesanddecisions.Thecompany'smissionrevolvesaround"deliveringoptimalproductsandexceptionalservicestoourcustomers",leadingtotheestablishmentofacomprehensiveafter-salesservicesystem.Toguaranteeacomprehensiveandattentiveserviceexperience,wedelvedeepintounderstandingourcustomers'specificneedsandofferprecise,reliablesolutions.Upholdingtheethosofgenuinecustomercare,weprioritizeenhancingcustomersatisfactionandfosteringclosecollaboration.Thiseffortisguidedbycultivatingadedicatedserviceteamspanningmarketing,sales,ordertrackingandtechnicalsupport.Furthermore,thecompany’sprioritiesonproducttechnologicalinnovationdrivenbymarketdemandshasenabledustoestablishaglobalizedsalesandservicenetwork.SupervisorResponsiblefordomesticandinternationaltechnicalsupport,systemtechnicalsupport,systemresearchandtechnicalsupportteammanagement.InternationalTechnicalSupportDomesticTechnicalSupportApplicationTestingPre-salesResponsiblefortechnicalsupportworkinvariousoverseasregions,providingtechnicaltraining,andconductingsystem-levelresearchonphotovoltaicsystems.ManagerResponsiblefordomestictechnicalsupport,systemtechnicalsupport,systemresearchandmanagementofdomestictechnicalsupport/systemapplicationtestingteams.Providestechnicalsupportforproductscoveredundersignedwarrantyagreements,offeringguidanceonproductinstallationanddebuggingtocustomers.Basedoncustomerfeedback,proposesnewdesignrequirementstoR&D;conductsapplicationtestingonnewproductstoimproveproductreliabilityandstability;providestechnicalsupportforproductscoveredundersignedwarrantyagreements,offeringguidanceonproductinstallationanddebuggingtocustomers.Assistsincustomersupportwithrelevantregionalsalesandmarketingteams;communicateswithcustomerstodesignandplansystemprojectsanddevelopimplementationplansbasedoncustomerrequirements;compilestechnical,product,andtrainingmaterials;organizestechnicalworkandcorrespondingtraining.CustomerServiceSystemOrganizationalStructureforTechnicalServiceTeamApplicationTestingInternationalTechnicalSupportSupervisorManagerPre-salesDomesticTechnicalSupportEnvironmental,SocialandGovernance(ESG)ReportIndustrialProsperityandValueCo-Creation5556APsystemsstrictlyadherestotheAdvertisingLawofthePeople'sRepublicofChinaandrigorouslymonitorsthepromotionandsalesprocessesofitsproducts.Everymarketingsloganandadvertisementcontentundergoesthoroughcompliancereviewtoensuretheauthenticityandlegalityofinformation.Thecompanyisdedicatedtoprovidingconsumerswithaccurateandefficientproductinformationtoassisttheminmakinginformedchoices.Initspromotionalstrategies,thecompanysteadfastlyupholdsprinciplesofauthenticityandfairness.Throughcontinuousinnovationandflexibleresponsestomarketchanges,thecompanystrivestomeetdiversecustomerneedswithoutemployinghyperboleordeceptivepractices.Itisthiscommitmenttoauthenticityandprincipledconductthathasgrantedthecompanyafavorablereputationandcredibilityinthemarket.Customerservicehasbecomeapivotalfactorforenterprisesinwinningmarketshareandattainingcustomerloyalty.Tocontinuouslyelevatethecompany'sservicequality,catertodiversecustomerneeds,andestablishlong-termstablepartnershipswithclients,thecompanyregularlyconductsspecializedcustomerservicetrainingprograms.Theseprogramsaredeliveredthroughbothin-personandremotetrainingformats,aimedatdeepeningemployees'understandingofserviceprinciples,enhancingserviceefficiencyandcustomersatisfaction.Throughthesetrainingprograms,eachemployeeisexpectedtointernalizecustomersatisfactionasafundamentalaspectoftheirworkethic,contributingcollectivelytothecreationofanoutstandingservicebrand.Thiseffortpropelsthecompanytowardsachievingelevatedserviceexcellenceandbroaderprospectfordevelopment.Inordertoprovideefficientandprofessionalcomplainthandlingservices,standardizetheprocessforhandlingcustomercomplaints,andensuretimelyresponsesandsatisfactorysolutionswhencustomersencounterissues,thecompanystrictlyadherestolegalregulationsandhasestablishedtheAfter-SalesOperationsManagementStandardstoactivelyaddressinquiriesrelatedtoourproducts,providingcomprehensiveandexpertresponses.Furthermore,boththeSalesandMarketingDepartmentsareresponsibleforgatheringanddocumentingfeedbackandsuggestions,offeringpracticalsolutionstoaddressanyidentifiedissues.Customersatisfactionremainsourtoppriority.Incaseswherereturnorexchangerequestsariseduetoproductissues,thecompanyrespondspromptlytoensurethatconsumerconcernsareeffectivelyresolved.Regardingafter-salesservices,wecommittoactivelycontactingcustomerswithin24hoursofidentifyingtheservicetype,withdesignatedafter-salespersonnelofferingviablesolutions.Shouldon-sitesupportbenecessary,ourproficientpersonnelwillpromptlydeliverservicesfollowingapprovalbytheafter-salesdepartmentleadership.Ourafter-salesteamensuressolutionimplementationandmaintainsongoingmonitoringuntiltheissueiscompletelyresolved.Shouldtheissuestillpersist,weconductareassessmentanddevelopsuccessivesolutionsuntilachievingaclosed-loopresolution.Inpursuitofconsistentoptimizationandelevatedcustomersatisfaction,thecompanyhasimplementedtheCustomerSatisfactionMeasurementandControlProcedures.Thisframeworkemploysscientificandsystematicmethodstogather,analyze,andrespondtocustomerfeedbackcomprehensively.Throughthisapproach,wegaininsightsintocustomerdemandsandexpectationsacrossmultipleaspectsincludingproducts,brands,services,logisticsandpricing.Weleveragetheseinsightstoimplementtargetedimprovementsandenhancements,therebymaximizingcustomersatisfaction.After-SalesServiceResponseCustomerServiceTrainingResponsibleMarketingCustomerSatisfactionOn-siteTrainingLiveStreamingTrainingTrainingFormatsCustomerDemandsOfficialWebsiteRegistration-PeriodicTrainingLiveStreamingRemoteSpecializedTrainingIn-personDuringthereportingperiodthecompanycustomersatisfactionrate74%PerformancePublicAccountSalesRequirementsTradeShowPresentationEventEnvironmental,SocialandGovernance(ESG)ReportIndustrialProsperityandValueCo-Creation5758SupplierSelectionandEvaluationSupplierEvaluationSustainableSupplyChainManagementWiththeaccelerationofglobalizationandtheincreasingexposureofenvironmentalissues,enterprisesarefacinggrowingsocialresponsibilityandenvironmentalpressures.Sustainablesupplychainmanagementnotonlyhelpscompaniesreduceoperationalrisksandimproveefficiencybutalsoenhancesbrandimageandsocialinfluence.Throughpropersustainablesupplychainmanagementpractices,companiesachieveawin-winsituationbetweeneconomicbenefitsandsocialbenefits,contributingtoglobalsustainabledevelopment.Whenintroducingnewsuppliers,thecompanyconductsthoroughassessmentsonareassuchasdesignandmanufacturingcapabilities,qualitysystems,businessconditionsandproductionvalidationoutcomes.Onlyafterpassingtheseevaluationsaresuppliersrecognizedasqualifiedpartners.Thecompanythencarriesoutperiodicorrandomauditsandinvestigationsonthesequalifiedsuppliers.Ifanysupplierfailstomeetthecompany'sstandardsintermsoftechnicalcapabilities,qualityperformance,pricingconsiderationsorservicealignment,appropriateproceduresforimprovement,alterationordisqualificationwillbeinitiated.Forestablishedpartnerswhohavebecomequalifiedsuppliers,theSQEdevelopsanannualsupplierauditplanatthebeginningofeachyeartoassesswhethertheirqualitysystemsaremaintainedandimproved,ensuringtheymeetthecompany'sandcustomers'requirements.Duringtheauditprocess,anyissuesidentifiedbytheSQEareconfirmedon-sitewiththesupplierandformallycommunicatedviaemail,alongwitharequestforthesuppliertoprovidewrittenimprovementmeasures.Duringre-assessment,thecompanyfocusesonmonitoringtheimprovementsmadebysupplierswithpreviousnon-complianceorincomingmaterialqualityissuesobservedduringthelastassessment.Ifasupplierfailstomakeeffectiveimprovementswithinthespecifiedtimeframeorremainsunqualifieduponre-assessment,thequalityteamwilldraftaformalnotification.AfterapprovalbytheOperationsSupervisorandCTO,thesupplier'squalifiedstatuswillberevoked.Tomeetthecompany'sexpandingneedsinbothdomesticandinternationalmarkets,thecompanyhasintensifiedcollaborationwithpartnersandfortifiedsupplychainmanagementefforts.Moreover,thecompanystrictlyadherestorelevantlawsandregulationssuchastheLawofthePeople'sRepublicofChinaonTenderingandBiddingandRegulationsontheImplementationoftheTenderingandBiddingLawofthePeople'sRepublicofChina.Leveragingactualoperationalcircumstances,thecompanyhasestablishedtheSupplierManagementProceduresandProcurementControlProcedures.Theseprotocolsstandardizeandrefinesupplierinvestigation,selection,deliverymanagementandpricemanagement,ensuringsupplychainsecurityandstability.Inordertoensurethestandardizedandsystematicmanagementofsuppliers,thecompanyhasimplementedtheSupplierManagementMeasures,imposingrigorouscontrolsoverentry,approvalsandevaluationstoachievefulllifecyclemanagementofsuppliers.Furthermore,thecompanyhasestablishedtheProcurementandPaymentManagementProcedurestoevaluatetheeffectivenessoftheinternalcontrolsystem,ensuringtheprocurementdepartmentcanaccuratelyanticipateupcomingpayments.Thisassitsthefinancedepartmentinmakinginformedfundprojectionsandpreparations,therebysafeguardingthelegitimaterightsandinterestsofsuppliers.SupplierClassificationForsignificantmanufacturing-orientedkeysuppliers,theSQEconductsquarterlyreviewsoftheircapabilitiestoensuretheymeetthecompany'srequirements.ThecompanyevaluatesthesesuppliersbasedontheKeySupplierAssessmentScorecard,focusingonfiveelements:quality,price,delivery,service,andtechnology.Eachelementcarriesaspecificassessmentweight:quality(40%),price(15%),delivery(15%),service(10%),andtechnology(20%).SupplyChainManagementSystemFullLifecycleManagement70%andaboveScoreScoringCriteriaandResultsEvaluationdeemedasqualified60%-70%Placedonobservationlist;re-evaluationafterimprovementwithinonemonthBelow60%EvaluationdeemedasunqualifiedSuppliersFullLifecycleManagementProcessSupplierEvaluationOn-siteEvaluationorNotOn-siteInspectionInspectionResultsEntryofQualifiedSuppliersRe-evaluationofQualifiedSuppliersRe-evaluationResultsComprehensiveAssessmentAssessmentResultsContinuedCollaborationNOYESYESYESYESNONONOOn-siteEvaluationExemptionSupplierRectificationwithinDeadlineEnvironmental,SocialandGovernance(ESG)ReportIndustrialProsperityandValueCo-Creation5960InformationSecurityandPrivacyProtectionInthedigitalera,thesecurityofpersonalinformationandsensitivedataisdirectlyimpactingindividuals'interests.Confrontingincreasinglyseverecyberthreats,thecompanycontinuouslyenhancesitsinformationsecurityconstructionbyemployingcutting-edgeencryptiontechnologiesandrobustsecuritymeasurestosafeguarddataconfidentialityandintegrity.Moreover,thecompanyplacessignificantemphasisonsafeguardinguserprivacy,strictlymonitoringthecollection,storageandutilizationofuserdatatoensurecomprehensiverespectforandprotectionofuserprivacyrights.APsystemsplacesastrongemphasisoninformationsecurityandprotection,strictlyadheringtotherequirementsofthePersonalInformationProtectionLawofthePeople'sRepublicofChinaandrelevantregulatoryframeworks.ThecompanyhasestablishedinternalmanagementsystemssuchastheInformationSecurityManagementManual,InformationSecurityRiskManagementProceduresandInformationAssetClassificationManagementProcedurestorespectandsafeguardcustomerprivacy,contributingsignificantlytopromotingnetworkandinformationsecurity.Toensuretheeffectivefunctioningofthecompany'sinformationsecuritymanagementsystem,anISOworkinggrouphasbeenestablishedtofosterarobustinformationsecurityculturewithinthecompany,furtherenhancingthecompany'sinformationsecuritymanagementcapabilitiesandlevels.TheISOgroupconsistsofrepresentativesfrommanagementanddepartmentleaders.Asoftheendofthereportingperiod,thecompanyhasobtainedISO27001informationsecuritymanagementsystemcertification.Inordertosafeguardinformationassets,thecompanyhasestablishedanInformationAssetIdentificationandRiskAssessmentForm.Thisformisdesignedtoidentifyinternalinformationassetswithintheorganizationandassesstherisksassociatedwiththem.Throughthisapproach,thecompanygainsinsightsintothevalueofinformationassetsandpotentialsecurityhazards,allowingfortheimplementationofappropriatemeasurestoensuredatasecurity.Thecompanyrigorouslyupholdsthecriteriaforselecti。

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ngandevaluatingsuppliers,distributorsandservicepartners,givingfairconsiderationtotheirperformanceandmanagementcapabilitiesinareassuchasquality,environmentalimpactandoccupationalhealthandsafety.Partnersarechosenbasedontheirsuitabilityforcollaboration.Adheringtoprinciplesoffairness,equityandtransparency,thecompanyconductsregularperformanceassessmentsofitspartnerstoenhancesupplychainmanagementoptimizationandimproveoverallvaluechainperformance.ThecompanysignsaSupplierCorporateSocialResponsibilityCommitmentwithsuppliersandstrictlyadherestothestipulationsoutlinedintheAPsystemsSupplierCodeofConduct.Asoftheendofthereportingperiod,thesigningrateoftheSupplierCorporateSocialResponsibilityCommitmentstandsat100%.Suppliersarerequiredtoupholdthehumanrightsoftheiremployeesinaccordancewithgloballyrecognizedstandards,demonstratingfullrespectfortheirworkforceandpreservingtheirdignity.Suppliersshouldacknowledgethatasafeandhealthyworkenvironmentnotonlyreduceswork-relatedinjuriesandillnessesbutalsoenhancesproductandservicequality.Itcontributestoincreasedproductivity,higheremployeeretentionratesandimprovedmorale.Suppliersshouldalsorecognizethecriticalroleofcontinuousemployeeinvestmentandeducationinidentifyingandaddressinghealthandsafetyissuesintheworkplace.Suppliersareexpectedtominimizeadverseimpactsonsociety,theenvironmentandnaturalresourcesduringtheirmanufacturingoperations,whileprotectingpublichealthandsafety.InformationSecurityManagementSystemResponsibleProcurementInformationSecurityRiskAssessmentInformationSecurityManagementSystemCertificationAPsystemsSupplierCodeofConductCategoriesofInformationAssetsGradeScoreCategoryRecommendationRiskLevelOn-SiteAssessmentFrequencyABCD90orabove(Including90)90-80(Including80)80-60(Including60)Below60DeemedUnqualifiedExcellentSupplierGoodSupplierQualifiedSupplierUnqualifiedSupplierConsiderincreasingprocurementvolumereasonablyImmediatelyterminateprocurementConsiderreducingprocurementortemporarysuspension,orutilizeasanemergencybackupContinueprocurementwithenhancedscrutinyLowRiskMediumRiskHighRiskOnceeverytwoyearsOnceayearTerminatecooperationLaborHealthandSafetyEnvironmentSoftwareAssetsDocumentAssetsPhysicalAssetsDataAssetsHumanResourcesAssetsServiceAssetsSuppliersmustadheretothehighestethicalstandardsinallaspectsoftheirbusinessactivities.BusinessEthicsEnvironmental,SocialandGovernance(ESG)ReportIndustrialProsperityandValueCo-Creation6162InformationSecurityTrainingThecompanyplacesutmostimportanceondatasecurityandhasimplementedacomprehensivesetofmeasurestosafeguarddata.LeveragingtheISO27001informationsecuritymanagementsystemcertification,wehaveestablishedarobustinformationsecuritymanagementframeworkthatgovernsdatafromgeneration,utilization,storage,transmissionandotheraspectstoensuredataintegrityandconfidentiality.Inaddition,wehavedevelopedapowerfulnetworkprotectionsystem,deployingdevicesandsoftwaresystemssuchasfirewalls,WAFandantivirussystems.ThesemeasuresAsthedigitaltransformationprogresses,thesignificanceofinformationsecurityforenterprisesisincreasinglyemphasized.Toguaranteethesecurityofcoreinformationandassets,thecompanyregularlyorganizesinformationsecuritytrainingsessions.Thetrainingcurriculumnotonlycoversregularbackupproceduresfortechnicaldocumentsandstrictmanagementofinternalfileaccesspermissionsbutalsoincludesdisseminationofconfidentialityknowledgeandestablishmentofregulationsforthedesignteam,aswellastheregularreviewandimplementationofconfidentialitypolicieswithappropriaterewardsandpenalties.Additionally,thecompanypromotesandenforcesitsconfidentialitycontrolsystem,combinedwithconfidentialityagreements,providingdualprotection.Securityprotocolsforoperationsandlaboratoryequipmentusagehavebeenestablished,alongwithenhancedmonitoringfacilities.Thesetrainingsfosterclosecollaborationacrossdepartments,fortifyingthecompany'sinformationsecuritydefensesandensuringseamlessoperationsandcontinuousinnovation.Duringthereportingperiod,informationsecuritytrainingwasprovidedtoallemployees,resultingin20individualsobtainingISO27001informationsecuritymanagementsysteminternalauditorcertification.Thecompanyhasconductedinformationsecuritytrainingtoelevateemployees'awarenessandenhancetheirself-protectioncapabilitiesregardingdatasecurity.Thetrainingprogramaimstofosteraprofoundunderstandingoftheimprotanceofdatasecurityamongemployees,empoweringthemwithpracticalknowledgeandskills.Thisequipsthemtoeffectivelypreventdatabreachesandupholdtheintegrityofcompanyinformationsecurityintheirpracticalwork.Duringriskassessment,ourcompanyadherestothefundamentalprinciplesofconfidentiality,integrityandavailability.Weassessrisksbasedonseverity,occurrenceandweakness,categorizingthemintofourlevels:low,medium,highandveryhigh.Thissystematicapproachhelpsusgainacomprehensiveunderstandingoftheriskprofileofourinformationassetsandallowsustoimplementspecificmeasurestomitigaterisksatdifferentlevels.InformationSecurityTrainingDataSecurityMeasuresDuringthereportingperiodSeverity(S)Occurrence(O)Weakness(W)DeterminedbythevalueoftheassetidentifiedduringassetidentificationWhetherexistingcontrolmeasurescandetect,preventandrespondpromptlytotheriskifitoccursTheexpectedfrequencyofriskoccurrencePerformanceTotalofInformationAssets191ItemsLowRiskAssets179ItemsMediumRiskAssets11ItemsHighRiskAssest1Itemplayaneffectiveroleinpreventingexternalintrusionsandinternalviruspropagation.Regularupdatestoournetworksecuritydevicesandsoftwareversionsareconductedtopromptlyaddressknownvulnerabilitiesandmaintainastableandsecurenetworkenvironment.Tofurtherfortifydatasecurity,thecompanyregularlybacksupbusinesssystemdataandconductsrecoverydrillstoensurerapiddatarestorationinemergencies,therebyensuringseamlessbusinesscontinuity.Furthermore,wehaveimplementedafileencryptionsystemtoencryptsensitivefiles,coupledwithstringentdataaccesscontrolsbasedondepartmentalandpersonnelresponsibilities,toensurecontrolledaccessandsecurehandling,transmissionandstorageofdata.Environmental,SocialandGovernance(ESG)ReportIndustrialProsperityandValueCo-Creation6364EmployeeWell-beingwithBoundlessRightsandInterestsEnvironmental,SocialandGovernance(ESG)ReportEmployeeWell-beingwithBoundlessRightsandInterests6566LaborRelationsManagementAPsystemsconsistentlyupholdsprinciplesoffairnessandimpartialityinitsrecruitmentprocesses,assessingcandidatesbasedsolelyonjobrequirementswithoutprejudiceregardingnationality,ethnicity,placeoforigin,gender,language,religiousbeliefsorqualifications.Thecompanyensuresthatemployeeshaveequalrightstoemployment,training,compensationandcareerpromotion,fosteringanenvironmentofequalityanddiversityintheworkplace.InaccordancewithnationalregulationssuchastheRegulationsonProhibitingtheUseofChildLaborandlocallegalrequirements,thecompanyverifiestheageofapplicantsduringtherecruitmentprocess.ItisexplicitlystatedintheHumanResourcesManagementProceduresthatallemployeesmustbeatleast18yearsold,andtheemploymentofchildlaborisstrictlyprohibited.AtAPsystems,weplaceagreatemphasisonthevalue,rightsandinterestsofouremployees,providingthemwithcomprehensivesupportanddevelopmentopportunities.Westrivetocultivateafairandinclusiveworkenvironmentwhereeveryemployeecanfullyunleashtheirpotential,contributingtothesustainablegrowthofthecompany.Througharobustcompensationandbenefitssystem,weensurethatemployees'rightsandinterestsarefullyprotected.Moreover,weprioritizeaddressingemployees'concernsandpromotingtheirphysicalandmentalhealth,fosteringasenseofcareandrespectwithintheworkplace.Wearecommittedtocreatingadiverse,equitableandharmoniousworkenvironmentthatencouragescreativityandteamworkamongemployees,therebydrivinggreatervalueforthecompany.Ourcompanyadheresstrictlytotheprincipleoflawfulemployment,followingallrelevantlawsandregulationssuchastheCompanyLawofthePeople'sRepublicofChinaandtheCivilCodeofthePeople'sRepublicofChina.Wehaveestablishedandimplementedemploymentmanagementsystems,includingtheHumanResourcesManagementProcedurestoensurethelegalityandcomplianceofourrecruitmentandemploymentpractices.Thisensuresthefullprotectionofemployees'legalrightsandinterestsinareassuchasrecruitment,promotion,workinghours,compensationandbenefitsaswellasemployeedevelopment.Inordertocontinuouslyenhancethecompany'sworkforcecompositionandtalentpool,weactivelyengageintalentacquisitionthrougharefinedrecruitmentprocessanddiversifiedchannels,includingsocialrecruitment,campusrecruitmentandinternalpromotions.Insocialrecruitment,ourprimaryfocusisononlineplatforms,complementedbyon-sitehiringeventsandleveragingheadhuntingservices.Wehaveestablishedpartnershipswithsixrecruitmentplatformstoensurecoverageofjobopportunitiesforlocalandnationalcandidates.Forcampusrecruitment,thecompanyprimarilyparticipatesinuniversitypresentationsindependently,withinformationalsessionsasasupplement.Duringthereportingperiod,weparticipatedin21careerfaireventsandheld3informationalsessions.EmployeeRecruitmentandEmploymentWorkforceDiversityandInclusionCampusRecruitmentDuringthereportingperiodlabordiscriminationincidentsCase0Asoftheendofthereportingperiod2023NewHiresbyGenderMaleFemaleNewHiresbyRecruitmentChannelSocialRecruitment128Persons43PersonsNewHires(persons)NewHires(persons)171PersonsCampusRecruitment37PersonsPerformancePerformanceFemaleManagers8PersonsFemaleManagersAccounted1.98%134PersonsEnvironmental,SocialandGovernance(ESG)ReportEmployeeWell-beingwithBoundlessRightsandInterests6768Thecompanyplacesastrongemphasisonemployees'workinghoursandholidayarrangements,adheringstrictlytotheattendancemanagementsystem.Inadditiontonationalstatutoryholidays,employeesareentitledtovariouswelfareleaveperiods,includingannualleave,marriageleave,maternityleave,nursingleave,breastfeedingleave,sickleave,work-relatedinjuryleave,bereavementleaveandpersonalleave.Dependingonjobrolesanddifferentworkstages,departmentsmayadjustworkschedulesappropriatelyafterreceivingapprovalfromleadershipandconsideringpracticalcircumstances.Furthermore,thecompanyrigorouslyfollowstherequirementsstipulatedintheSocialInsuranceLawofthePeople'sRepublicofChina,ensuringpunctualpaymentofthefivesocialinsurancesandonehousingfundforemployees.Additionally,thecompanyprovidesotherbenefitssuchascommercialinsurance,employeehousingfacilities,heatstrokesubsidies,medicalcheck-ups,holidaygiftsandmoretoemployees.Werecognizethatcompensationandbenefitsarerobustdriversforunlockingemployeepotential,unleashingtheirvalue,andpoweringthecompany'ssteadyprogressandmarketleadership.Assuch,weupholdtheprincipleof"internalequity,externalcompetitiveness",establishingarefinedcompensationmanagementframeworkthatenhancesemployeesatisfaction,productivityandoverallengagement.Thecompanykeepsencouragingemployeestodelivervaluebyconductingbiannualperformanceevaluations,includingmid-yearandyear-endassessments.Theseevaluationsaredirectlytiedtocompensation,servingasacatalystforunlockingemployeepotential.Weemployacomprehensive,fairandobjectivedual-dimensionalassessmentmethodbasedonjobresponsibilitiesandperformanceachievementsduringtheseevaluations,ensuringanaccurateevaluationofeachemployee'sperformance.CompensationandBenefitsCompensationStructurePositionalSalaryPerformance-basedSalaryVariousAllowancesBonusesDeterminedbasedontheemployee'spositionimportanceandindividualqualificationsPaidaccordingtotheemployee'sjobperformanceandcompanyperformanceProvidedasbenefitstoemployeesbasedonthecompany'soperationalconditionsandregionalstandardsOfferedasincentivesinaccordancewiththecompany'sordepartment'sperformance,followingspecifiedrewardpoliciesafterassessments2023EmployeesCountbyPositionLevelJuniorManagementSeniorManagement9Persons46PersonsRegularEmployeesMid-levelManagement18Persons331PersonsEmployeesCountbyGenderMaleEmployees285PersonsFemaleEmployees119PersonsEmployeesCountbyAgeBelow30YearsOld(Excluding30)30-40YearsOld(Including30,Excluding40)60YearsOldandAbove175Persons8Persons134Persons50-60YearsOld(Including50,Excluding60)21Persons40-50YearsOld(Including40,Excluding50)66PersonsEmployeesCountbyEducationalQualificationsDoctorateDegre4PersonsMaster'sDegree65PersonsBelowCollegeDegree12PersonsCollegeDegree47PersonsBachelor'sDegree276PersonsEmployeesCountbySpecializationAdministrationSales62Persons101PersonsTechnology212PersonsFinance18PersonsProduction11PersonsEmployeesCountbyRegionChina(includingHongKong,MacauandTaiwan)332PersonsOverseasCountriesorRegions72PersonsTotalWorkforce404PersonsEmployeeswithDisabilities1PersonsMinorityEthnicityEmployees8PersonsDuringthereportingperiodPerformanceSigningRateofTheLaborContract100%EmployeeTurnoveRate13.6%CoverageRateforTheSocialInsurance100%Environmental,SocialandGovernance(ESG)ReportEmployeeWell-beingwithBoundlessRightsandInterests6970Thecompanyplacesastrongemphasisonprotectingandrespectingemployees'freedomofexpression,consideringitavitalaspectofdemocraticmanagementwithintheorganization.Wearededicatedtofosteringanopenandinclusiveworkenvironmentthatallowsemployeestofreelyvoicetheiropinionsandsuggestions.Togaindeeperinsightsintoemployees'truthfulperspectivesandtheobjectiverealitiesofthecompany,seniorleadershiputilizesvariouschannelssuchasSMS/WeChatplatforms,rationalizationproposals,employeesatisfactionsurveys,forums,departmentmeetingsatgrassrootslevels,recreationalactivitiesandluncheons.Theseinitiativesaimtogatherfeedbackandsuggestions,andassessemployeesatisfaction.Additionally,thecompanyconductsregularemployeesatisfactionsurveysusingaEmployeeSatisfactionQuestionnaire.Thisquestionnairecoverskeyareassuchasjobsatisfaction,workenvironment,compensationandbenefitsperceptions,andopinionsonpersonaldevelopmentandleadership.Gatheringemployeefeedbackallowsustoactivelyidentifyandaddresspotentialissues,furtheroptimizingthecompany'smanagementpracticesandworkenvironment.Moreover,forprobationaryemployees,directleaderswillconductface-to-facediscussions,centeredaroundadaptability,job-relatedskillsandoverallimpressions.Theseconversationsfacilitateasmoothintegrationofnewemployeesintotheteamandensuretheyreceivethenecessaryguidanceandsupport.Wecontinuouslyenhancethechannelsandresponseprocessesforemployeestoprovidefeedbackandvoicetheirconcerns.Thesechannelsincludephonecalls,WeChatandothercommunicationmethods,withwhichemployeescanexpresstheirconcernsandexposepotentialrisks.Employeeappealsreceivethehighestlevelofattention,ensuringfairandtransparenthandlingprocessesthatprotectemployees'legitimaterightsandinterestseffectively.Thecompanyactivelyupholdsdemocraticmanagementprinciples,strictlyadheringtotheTradeUnionLawofthePeople’sRepublicofChinaandtheConstitutionoftheAll-ChinaFederationofTradeUnions.Itfulfillsitslegalobligationsbyestablishingarobustsystemofworkers'congressesandtradeunions.Thissystemensuresemployees'rightstoinformation,participation,expression,electionandoversight,thussafeguardingtheirdemocraticrightscomprehensively.Furthermore,thecompanyregularlyconvenesworkers'congressestosolicitandcarefullyconsideremployeefeedbackandsuggestions,therebypromotingsustainabledevelopmentandfulfillingsocialresponsibilitieseffectively.DemocraticManagementAtAPsystems,werecognizethatthehappinessandsatisfactionofouremployeesarefundamentaltothecompany'ssustainabledevelopment.Therefore,wenotonlyprioritizeemployees'careergrowthbutalsodedicateourselvestoenrichingtheirlivesandenhancingtheiroverallwell-being.Ourgoalistocultivatearelaxedandenjoyableworkenvironmentthroughavarietyofculturalandrecreationalactivities,aswellasteam-buildinginitiatives.Theseeffortsareaimedathelpingemployeesfindfulfillmentandenjoymentintheirwork,leadingtoincreasedmotivationandproductivity.Moreover,weencourageemployeestopursuetheirpersonalinterestsandhobbiesoutsideofwork,promotingahealthywork-lifebalanceandmaintainingtheirphysicalandmentalhealth.Thecompanyiscommittedtocontinuouslyimprovingandcreatingavibrantandfulfillingexperienceforouremployees,fosteringasenseofcareandwarmthwithinourorganization.EmployeeCareEmployeeSatisfactionBasketballActivitiesBadmintonActivitiesTeamBuildingActivitiesFunSportsDayItem1TheTradeUnion'sMembershipComprisedofActiveEmployeesDeliberatedandApprovedAgenda%100DuringthereportingperiodPerformance100%ParticipationRateinTheEmployeeSatisfactionSurveyTheEmployeeSatisfactionRate91.13%DuringthereportingperiodPerformanceEnvironmental,SocialandGovernance(ESG)ReportEmployeeWell-beingwithBoundlessRightsandInterests7172CelebratingInternationalWomen'sDayThecompanyholdsasteadfastbeliefintheindispensableroleoffemaleemployeesinourdevelopment,astheirtalents,intelligenceandstrengthaddauniquedimensiontoourorganization.Therefore,wearededicatedtocultivatinganinclusive,equitableandsupportiveworkenvironmentwhereeveryfemaleemployeecanfullyunleashherpotential.Weunderstandthatbyprovidingcareandsupporttoourfemaleemployees,theywillgaintheconfidenceanddeterminationneededtonavigatetheircareerpaths,fosteringmutualgrowthandcreatingabrighterfuturetogetherwiththecompany.IncelebrationofInternationalWomen'sDay,thecompanydelivereditsappreciationforfemaleemployeesbygiftingthemwithwarmspringgifts.Thesegiftswerenotjustmaterialofferingsbutalsoservedassymbolsofencouragement,inspiringfemaleemployeestomaintainconfidenceandcourageinconstantlychallengingthemselvesandstrivingforgreaterachievementsinthefutureworkendeavors.EmployeeTrainingandDevelopmentAPsystemsconsidersemployeetrainingasafundamentaldriverofourcorporatecompetitivenessandfuturegrowth.Itnotonlyfacilitatestheenhancementofemployees'professionalskillsandknowledgebutalsocultivatesastrongersenseofbelongingandloyaltyamongthem.Intoday'sintenselycompetitivemarketlandscape,continuousemployeetraininghasbecomeanessentialprerequisiteforenterprisestosustaincompetitiveedgeandachievingsustainabledevelopment.Thecompanysteadfastlyupholdsthebeliefthatemployeesrepresentourmostvaluableasset,andtheirgrowthanddevelopmentarepivotaltothecompany’sfuture.Assuch,wehaveestablishedandcontinuallyrefinedasystemforemployeerecruitment,trainingandincentives,aimedatencouragingemployeestocontinuouslyelevatetheirinherentvalue.Werecognizetheuniquepotentialandtalentspossessedbyeachemployee,andthroughtargetedtrainingandguidance,weempowerthemtoharnesstheirstrengthseffectively,fosteringmutualgrowthforbothindividualsandtheorganization.Ourcommitmentliesinprovidingemployeeswithagrowthplatformcharacterizedbychallengesandopportunities,cultivatingtheirinnovativemindsetandpracticalcapabilities,therebyenablingthemtostandoutfromothersintheindustrythroughcontinuouslearningandpractice.Ourcompanyboastsanexceptionalinternaltrainingteamcomprisingindividualswithprofoundexpertiseandextensiveteachingexperience.Theydeliverawidearrayofprofessionalknowledgecoursestoemployees,fosteringacultureofknowledgeaccumulationandsharingwithinthecompany.Asoftheendofthereportingperiod,ourinternaltrainingteamconsistsof10trainers.TrainingSystemandPoliciesCompanyHierarchicalTrainingPerformanceEmployeesInitiatedMaternityLeave2PersonsReturn-to-WorkRateAfterward100%EmployeesTookParentalLeave7PersonsReturn-to-WorkRateAfterward100%DuringthereportingperiodNewEmployeeTrainingInordertofacilitateaswiftintegrationintothecompanycultureandfamiliarizationwithworkprocessesfornewemployees,thecompanyhasprovidedessentialguidanceandsupport.Thisinitiativeempowersnewemployeestounleashtheirpotentialeffectively.Duringthereportingperiod,atotalof84individualsparticipatedin5newemployeetrainingsessions,accumulating15hoursoftrainingduration.Focusedonenhancingpracticaloperationalcapabilitiesandtheoreticalknowledgeamongourworkforce,thecompanyprioritizesprofessionalskillsdevelopment.Thecompanyconductedtargetedtrainingprogramson"SafetyManagementofLithiumBatteries"and"Analysis,TestingandApplicationofPowerConverterMagneticTechnology"toelevateemployees'specializedskilllevels.The"SafetyManagementofLithiumBatteries"courseemphasizescriticalsafetyprotocolsandmaintenancetechniquesforlithiumbatteryusage,ensuringemployeescansafelyandefficientlyoperatelithiumbatteriesinpracticaloperationalscenarios.Conversely,the"Analysis,Test。

7. ingandApplicationofPowerConverterMagneticTechnology"courseprovidesin-depthExpertiseTraininginsightsintoappliedtechnologyandtestingmethodologies,enablingemployeestograspandutilizepowerconvertermagnetictechnologyeffectively.Duringthereportingperiod,thecompanyhasconductedtwoprofessionalskillstrainingsessionswithatotalof91participants,accumulating21hoursoftraining.Environmental,SocialandGovernance(ESG)ReportEmployeeWell-beingwithBoundlessRightsandInterests7374SystematicEmployeeTrainingProgramImplementedbytheCompanyThecompanyhasimplementedacomprehensiveandsystematicemployeetrainingprogramaimedatenhancingprofessionalcapabilities.Thisprogramincludesdepartment-basedrotationalonlinetraining,ensuringthateveryemployeehassufficientopportunitiesforlearning.Eachtrainingsessionlastsbetween4to5hours,withrotationsoccurringeverythreeweeks.Thisschedulemaintainslearningcontinuitywhilegivingemployeessufficienttimeforassimilation.Duringthereportingperiod,theaveragetotalcreditsearnedperpersonwere29,withatotalparticipationof252individualsandanaverageof22coursesperperson.Thesetrainingprogramshaveledtoimprovementsinemployees'professionalskills,promotingtheircompetitivenesswithintheirrespectivedomains.Concurrently,thisapproachhasprovidedrobusttalentsupportforthecompany'sbusinessgrowth.Tofurtherfacilitateemployees'careeradvancement,thecompanyhasestablishedtheEmployeePromotionManagementMeasuresandtheEmployeeRewardsandPenaltiesManagementRegulations(Interim),therebyinstitutingadualcareerdevelopmentpathwaythatintegrateshorizontalandverticalprogression.Regardinghorizontaldevelopment,weencourageemployeestoengageininternaltransfersorcompetitiveapplicationsacrossdepartmentsandroles,aligningwiththecompany'sbusinessgrowthandindividualinterests.Thisapproachnotonlyenhancesemployees'overallcompetenciesandadaptabilitybutalsooptimizestheallocationofhumanresourceswithinthecompany,maximizingtherealizationoftalentvalue.Conversely,verticaldevelopmentprimarilyfocusesonemployees'growthwithintheircurrentroles,providingopportunitiesforpromotionastheircapabilitiescontinuetoimprove.Thisdualdevelopmentpathwaydesignoffersemployeesadiversifiedrangeofcareertracks,enablingthemtorealizetheirpersonalvaluewhilecontributingtothecompany'sconstantvitalityforsustainedgrowth.EmployeeTrainingPerformanceManagementPositionsBusinesssEmployeeDevelopmentPathwayCareerDevelopmentPathway2023EmployeeTrainingCoverageRateTotalTrainingDurationAverageAnnualTrainingDurationperEmployeeDirectorManagerSeniorManagerSupervisorDeputyGeneralManagerSeniorDeputyGeneralManagerSeniorSupervisorTechnicianAssistantEngineerEngineerSeniorEngineerIntermediateEngineerChiefEngineerSeniorIntermediateEngineerSeniorChiefEngineerEngineeringandTechnicalRolesMarketingRolesEconomicandClericalRolesJobtitlesaredeterminedbasedonspecificjobrequirements,withcorrespondingbenefitsprovidedaccordingtothedesignatedlevelInvestmentinEmployeeTrainingCNY351,889100%239,120hours98hours24sessions2,440personsNumberofTrainingSessionsTotalNumberofEmployeesReceivingTrainingAdvancedEngineerSeniorAdvancedEngineerBusinessSupervisorSeniorBusinessSupervisorBusinessDeputyGeneralManagerSeniorBusinessDeputyGeneralManagerBusinessAssistantClerkBusinessSpecialistBusinessManagerSeniorBusinessManagerEnvironmental,SocialandGovernance(ESG)ReportEmployeeWell-beingwithBoundlessRightsandInterests7576Constantlymaintainingaprudentandprofessionalattitudeandstrictlyadheringtonationalandlocallawsandregulations.APsystemshighlyvaluesemployeelifesafetyandphysicalhealthastoppriorities,andthecompanyemploysscientificpreventivemeasuresandrigoroustrainingmechanismstoensurecomprehensiveprotection.Thecompanyviewsemployeehealthandsafetyasacrucialaspectofachievingsustainabledevelopment,steadfastlyimplementingvariousemployeehealthprotectionpolicies.ItstrictlyadherestolawsandregulationssuchastheLawofthePeople'sRepublicofChinaonWorkSafetyandtheLawofthePeople'sRepublicofChinaonPreventionandControlofOccupationalDiseases.Manualsandproceduraldocumentsrelatedtooccupationalhealthandsafetymanagementsystemshavebeenestablishedtoensurefullemployeeparticipationandnegotiationrightsinaspectssuchashazardidentification,assessmentandcontrolplanning,occupationalhealthandsafetymanagementgoalplanning,incidentinvestigationandhandling,andoccupationalhealthandsafetyperformanceevaluation.Thisapproachensureseffectivesafetyproductionwithinthecompany.Toenhancethesafetyproductioncapabilitiesofallpersonnelandfosterasafetyculturethroughouttheorganization,thecompanyconsistentlyupholdstheprinciplesof"safetyfirst,prevention-oriented,comprehensivegovernance".Itfollowsthepoliciesof"safetymanagementmustaccompanyproductionmanagement"and"whoeverisinchargeisresponsible",establishingtheSafetyProductionResponsibilitySystem.Thissystemclearlydefinesthesafetyproductionresponsibilitiesofeachunit,managementpersonnelatalllevels,andemployeesinvariouspositions,therebystrengtheningthesafetyawarenessofallemployees.Asthecompany'stopsafetyofficer,theGeneralManagerbearsoverallresponsibilityforsafetywork,ensuringtheeffectiveexecutionofsafetymeasures.Duringthereportingperiod,theChairman,GeneralManagerandrelevantdepartmentalleadershavejointlysignedAnnualSafetyProductionTargetResponsibilityAgreements.Additionally,front-lineemployeesexhibiteda100%signingrate,with220safetycommitmentletterssigned,therebyfullyenforcingsafetyresponsibilitiesthroughouttheorganization.Thecompanyplacesgreatimportanceonthehealthandsafetyofitsemployees,conductingregularworkplaceoccupationalhazardassessments.Utilizingprofessionaldetectionequipmentandadvancedtechnologicalmethods,thecompanythoroughlyexamineshazardoussubstancesintheworkplacetoensureahealthyandsafeenvironmentforallemployees.Furthermore,thecompanycollaborateswithspecializedmedicalinstitutionstoconductroutineoccupationaldiseasescreenings,providingcomprehensivehealthprotectionforitsworkforce.Intermsofemergencyresponse,thecompanyimplementsacomprehensivethree-levelsafetyeducationprogramtoequipemployeeswithfundamentalsafetyawarenessandskillstoeffectivelyhandleunforeseenincidents.Toenhanceefficiencyinrespondingtosuddenenvironmentalandsafetyincidents,thecompanyconductsregularenvironmentalandsafetyemergencyresponsedrills.Thesedrillsservetoenhanceemployees'emergencyresponsecapabilities,ensuringswiftandaccurateresponsemeasuresinunexpectedscenarios.Bytheendofthereportingperiod,thecompanyhasnotexperiencedanyoccupationaldiseaseinjuriesorserioussafetyproductionaccidents.Tofurtherenhanceemployees'professionalskillsandoverallcompetencies,thecompanyencouragesemployeestopursuerelevantprofessionalcertifications.Duringthereportingperiod,atotalof23technicalprofessionalsparticipatedincontinuingeducationtrainingcoveringboth"GeneralSubjects"and"ProfessionalSubjects".Theobjectivewastocomprehensivelyelevateemployees'knowledgeandskills.Thecompanyandemployeessharedthetrainingcostsequally,therebyrelievingindividualfinancialburdensandshowcasingthecompany'scommitmenttoemployeegrowthandsupport.HealthandSafetySafetyproductioniseveryone'sresponsibility.Tostandardizeemployeesafetybehaviors,APsystemshasformulatedtheAPsystems2023EmployeeTrainingPlan,activelyconductingnewemployeesafetyeducationandsafetyproductiontrainingsessions.Theseinitiativesaimtofortifythesafetydefensesofemployeesandelevatetheirsafetyawarenessandskills.Trainingcontentencompassessafetyproduction-relateddocuments,regulations,processes,hazardfactors,preventivemeasuresandcasestudiesofaccidents.Trainingisconductedthroughon-sitelectures,withtheestablishmentofprofessionaltrainingparticipantfiles.Duringthereportingperiod,thecompanyactivelyengagedinthenationalSafeProductionMonthinitiative,organizingaseriesofinnovativeandimpactfulpromotionalcampaigns.Leveragingplatformssuchaslive-streamedfiresafetytrainingsessionsandinteractiveonlinequizzeswithincentives,thecompanyeffectivelydisseminatedcrucialsafetyproductionknowledgetoeachmemberofitsworkforce.Theseendeavorsnotonlyfacilitatedthewidespreadunderstandingofsafetyproductionknowledgebutalsocultivatedapositiveenvironmentemphasizing"collectivevigilancetowardssafetyproductionandtheprotectionoflife".OccupationalHealthandSafetySystemSafetyProductionRiskManagementSafetyTrainingandDissemination"SafeProductionMonth"PromotionalPosterSafetyTrainingforNewEmployeesIndividualsAcquiredJunior-LevelCertificate24PersonsIntermediate-LevelCertificate18PersonsAdvancedCertificate6PersonsBytheendofthereportingperiodEnvironmental,SocialandGovernance(ESG)ReportEmployeeWell-beingwithBoundlessRightsandInterests7778Tofurtherelevateemployees'occupationalhealthstandards,thecompanyarrangesregularhealthexaminationsatdesignatedmedicalinstitutions.Workersengagedintasksinvolvingpotentialoccupationaldiseasehazardsundergooccupationalhealthchecksbeforestartingworkandperiodicallyduringtheiremployment.Duringthereportingperiod,173employeeswhohadcompletedoneyearofserviceparticipatedinhealthexaminations,achievinga100%coveragerate.Similarly,thecoverageratefornewemployees'healthexaminationsuponjoiningthecompanywasalso100%.Toenhanceemployees'awarenessofoccupationaldiseasepreventionandelevatetheiroverallhealth,thecompanyconductsfourannualtrainingsessionsfocusingonoccupationaldiseaseprevention.Thesesessionsaredesignedtoensurethatemployeesgainacomprehensiveunderstandingandmasteryofrelevantknowledge.Throughcollaborativeeffortsandactiveparticipation,thecompanyaimstofosterahealthierandsaferworkenvironment,safeguardingthephysicalwell-beingandlifesafetyofitsemployees.Furthermore,thecompanyconductsregularpromotionalactivitiesandeducationalcampaignsonoccupationalhealth,includingobservancesdedicatedtooccupationaldiseaseprevention.Additionally,occupationalhealthhazardnotificationsignsandoccupationalhealthsafetywarningsignsaredisplayedinareaswhereoccupationalhazardsarepresent,suchasfactoryzonesandworksites.Thesemeasureseffectivelystrengthenemployees'awarenessandunderstandingofoccupationalhazardsassociatedwiththeirrespectiveroles.OccupationalHealthProtectionMeasuresPromotionalPosterforOccupationalDiseasePreventionObservancesSecurityTrainingPerformance2023OccupationalHealthHazardNotificationSignsPhotoofEmployeesUndertakingHealthExaminationInvestmentinSafeProductionTotalInvestmentinSafetyEducationandTrainingNumberofTrainingSessionsNumberofTrainingNumberofParticipantsinSafetyEducationandTrainingTotalDurationofSafetyEducationandTrainingCoverageRateofSafetyEducationandTraining5Sessions1,162Persons1,646Hours100%CNY171.68millionCNY3.5millionEnvironmental,SocialandGovernance(ESG)ReportEmployeeWell-beingwithBoundlessRightsandInterests7980PromotingSocialHarmonyThroughPhilanthropyInitiativesEnvironmental,SocialandGovernance(ESG)ReportPromotingSocialHarmonyThroughPhilanthropyInitiatives8182DonationsofSolarReadingLightstoMountainousRegionsAsagloballeaderindistributedphotovoltaicstoragesolutions,APsystemshasconsistentlyremainedcommittedtoitsmissionof"DrivingTowardsaZero-CarbonFuture,Co-CreatinganIntelligentLife".Weplacegreatimportanceonphilanthropy,continuouslydeepeningourpartnershipswithvariouscharitableorganizationsandsectors,activelyfulfillingoursocialresponsibilities,andcontributingourstrengthtothethrivingdevelopmentofphilanthropicendeavors.Inrecentyears,APsystemshasleverageditsstrengthstocollaboratecloselywithnumerousdomesticandinternationalcharitableorganizations,makingsignificantcontributionstotheharmoniousdevelopmentofsociety.Since2016,thecompanyhasdonatedovertenthousandsolarlightstochildreninpoverty-strickenareas,withacumulativevalueexceedingCNY320,000;donationCNY100,000tocharitableorganizations.Additionally,incollaborationwithEuropeanpartnersandothers,wehaveconductedcharitableactivities,raisingover23,000Eurosanddonating3,600solarlightstothenon-profitorganization"ExtendtheDay".ThisinitiativeprovidesmorereliableandsustainableenergysolutionsforresidentsinAfricaandotherregions,therebyhelpingimprovetheirlivingconditions.Movingforward,APsystemswillcontinuetostrengthencooperationwithothercharitableorganizationsandsectors,diversifytheformsofphilanthropicactivities,andempowerinitiativessuchasphotovoltaicpovertyalleviation,solarlightdonationsandchildren'sphotovoltaicknowledgepromotion.Wearecommittedtoactivelyengaginginphilanthropyandcontributingevenmoresignificantlytotheharmoniousdevelopmentofsociety.Duringthereportingperiod,APsystemsdonated1,666solarreadinglightstomorethantenprimaryandsecondaryschoolsinremotemountainousregionsofSichuanandGuizhouprovinces,China.ThesesolarlightswerespecificallydesignedbyAPsystemsengineerstoaddresstheelectricityneedsofstudentsinpoverty-strickenareas.Theyarecompact,portableandcanbechargeddirectlybysunlight.Withasinglecharge,theycanprovidecontinuoususageforupto5hours,makingthemhighlycost-effectiveandsuitableassupplementarylightingsourcesforchildreninremoteareas.Throughoutthedonationprocess,APsystemscollaboratedwithvariouscharitableorganizationsandorganizedvolunteeractivitiestoensurethateachlightwasdistributedtothestudents,bringingthemthe"lightofhope"filledwithbeautifulaspirations.Environmental,SocialandGovernance(ESG)ReportPromotingSocialHarmonyThroughPhilanthropyInitiatives8384AppendixKeyPerformanceConveningoftheShareholders'MeetingDeliberationofAgendaItemsattheShareholders'MeetingCompositionoftheBoardofDirectorsIndependentDirectorsFemaleDirectorsDirectorswithDoctoralDegreesDirectorswithMaster'sDegreesDirectorsAged30-50DirectorsAged50-60DirectorsAgedover60ConveningoftheBoardofDirectorsDeliberationofAgendaItemsattheBoardofDirectorsCompositionoftheSupervisoryBoardConveningoftheSupervisoryBoardDeliberationofAgendaItemsattheSupervisoryBoardPaymentofTaxesRegularDisclosureofReportsDisclosureofTemporaryAnnouncementsConductofInvestorOpenForumsReceptionofOn-SiteInvestorSurveysAddressingInvestorInquiriesInvestorInquiryResponseRateCashDividendperTenSharesTotalCashDividend(IncludingOtherMethods)PercentageofTotalCashDividend(IncludingOtherMethods)toTotalProfitDistributionRateofAnti-CommercialBriberyandIntegrityAgreementsSignedwithSuppliersElectricityConsumptionWaterConsumptionR&DExpenditureRatioofR&DExpensestoCompanyRevenueNumberofR&DpersonnelRatioofR&DPersonneltoTotalCompanyWorkforceNewInventionPatentsNewUtilityPatentsNewSoftwareCopyrightsCustomerSatisfactionSigningRateofSupplierCSRCommitmentsNumberofLaborDiscriminationIncidentsNumberofNewEmployeesNumberofNewMaleEmployeesNumberofNewFemaleEmployeesNumberofNewEmployeesRecruitedThroughSocialChannelsNumberofNewEmployeesRecruitedfromCampusesTotalNumberofEmployeesNumberofFemaleLeadershipPercentageofFemaleLeadershipTime(s)Item(s)Person(s)Person(s)Person(s)Person(s)Person(s)Person(s)Person(s)Person(s)Time(s)Item(s)Person(s)Time(s)Item(s)CNY10,000Piece(s)Piece(s)Time(s)Time(s)Time(s)%CNYCNY10,000%%kWhTon(s)CNY%Person(s)%Item(s)Item(s)Item(s)%%Incident(s)Person(s)Person(s)Person(s)Person(s)Person(s)Person(s)Person(s)%51773122151940382117,78966241521002.21,76048.8293.55726,92248710,470.537.3721051.98449741000171128431343740481.98NumberofDisabledEmployeesNumberofMinorityEthnicEmployeesMaleEmployeesFemaleEmployeesEmployeesinChina(includingHongKong,MacauandTaiwan)EmployeesinOverseasCountriesorRegionsSeniorManagementMiddleManagementJuniorManagementOrdinaryEmployeesBelow30YearsOld(Excluding30)30-40YearsOld(Including30,Excluding40)40-50YearsOld(Including40,Excluding50)50-60YearsOld(Including50,Excluding60)Above60YearsOldDoctorateMaster'sBachelor'sCollegeDiplomaBelowCollegeDiplomaProductionSalesTechnologyFinanceAdministrationReturn-to-WorkRateaftermaternityleaveNumberofEmployeesonMaternityLeaveReturn-to-WorkRateafterParentalLeaveNumberofEmployeesonParentalLeaveLaborContractSigningRateSocialSecurityCoverageRateEmployeeTurnoverRateNumberofAgendaItemsApprovedbytheWorkers’Congress/UnionRatioofActiveEmployeestoUnionMembersEmployeeSatisfactionParticipationRateinEmployeeSatisfactionSurveysInvestmentinEmployeeTrainingNumberofTrainingSessionsforEmployeesTotalNumberofEmployeesTrainedTotalDurationofEmployeeTrainingAverageTrainingDurationperEmployeeEmployeeTrainingCoverageRateAmountofInvestmentinSafetyProductionTotalInvestmentinSafetyEducationandTrainingNumberofSafetyEducationandTrainingsessionsNumberofParticipantsinSafetyEducationandTrainingTotalDurationofSafetyEducationandTrainingSafetyEducationandTrainingCoverageRateNumberofFront-lineEmployeesSigningSafetyCommitmentAgreementsSigningRateofSafetyCommitmentAgreementsbyFront-lineEmployeesCoverageRateofNewEmployeeEntryPhysicalExaminationsPerson(s)Person(s)Person(s)Person(s)Person(s)Person(s)Person(s)Person(s)Person(s)Person(s)Person(s)Person(s)Person(s)Person(s)Person(s)Person(s)Person(s)Person(s)Person(s)Person(s)Person(s)Person(s)Person(s)Person(s)Person(s)%Person(s)%Person(s)%%%Item(s)%%%CNY10,000Session(s)Person(s)Hour(s)Hour(s)%CNY10,000CNY10,000Session(s)Person(s)Hour(s)%Agreement(s)%%1828511933272918463311341756621846527647121162212181011002100710010013.6110010091.1335.19242,440239,1209810017,167.7735051,1621,646100220100100CorporateGovernanceEnvironmentalManagementIndustrialValueDimensionIndicatorUnit2023维度指标单位2023年DimensionIndicatorUnit2023HumanResourcesSafetyProductionEnvironmental,SocialandGovernance(ESG)ReportAppendix85861.WhatisyouroverallratingonourperformanceinfulfillingESGinitiatives2.WhatisyouroverallratingonthisESGreport3.Howdoyouperceiveourcommunicationwithstakeholders4.Howdoyouassessourproductresponsibility5.Howdoyourateourperformanceintermsofenvironmental,safetyandoccupationalhealthaspects6.Whatisyouropiniononouremployeeresponsibility7.HowdoyouevaluateouroverallESGperformance8.DoyouhaveanycommentsorsuggestionsregardingourESGperformanceandthisreportDearReader：Thankyoufortakingthetimetoreadthisreport.Wehighlyvalueandlookforwardtohearingyourvoiceonthisreport.YouropinionsandsuggestionsarecrucialforustocontinuouslyimproveourESGinformationdisclosure,advanceESGmanagementandpractices.Youropinionsandsuggestionsareprecioustous,andwesincerelythankyouforprovidingthem!□Excellent□Good□Fair□Poor□VeryPoor□Excellent□Good□Fair□Poor□VeryPoor□Excellent□Good□Fair□Poor□VeryPoor□Excellent□Good□Fair□Poor□VeryPoor□Excellent□Good□Fair□Poor□VeryPoorIndexofIndicatorsFeedbackFormFrameworkContentCASS—ESG5.0GRIStandardsAboutThisReportChairman'sMessageACloseGlimpseatAPsystemsSustainableProsperity,PerpetualDevelopmentRobustSupervision,GovernanceasPriorityEnvironmentalConservationforFutureCollaborationIndustrialProsperityandValueCo-CreationEmployeeWell-beingwithBoundlessRightsandInterestsAppendixPromotingSocialHarmonyThroughPhilanthropyInitiativesFutureProspects□Excellent□Good□Fair□Poor□VeryPoor□Excellent□Good□Fair□Poor□VeryPoorSustainableDevelopmentGoalsSustainableDevelopmentInitiativesGovernanceFrameworkEmphasizingGreenManagementExpandingGreenBusinessInitiativesSustainingGreenOperationsResearchandDevelopment(R&D)InnovationCustomerRightsandInterestsSustainableSupplyChainManagementInformationSecurityandPrivacyProtectionLaborRelationsManagementEmployeeTrainingandDevelopmentHealthandSafetyKeyPerformanceIndexofIndicatorsFeedbackFormProductLiabilityRiskControlManagementInvestorRelationsBusinessEthicsP1.1/P1.2/P1.3/G3.7P2.1/P2.2/A1P4.1/P4.2/P4.3G2.4G3.5/G3.6G1.1/G1.2G1.3G1.10/G1.11G1.7/G1.9/E1.1/E1.6/E1.7/E1.9/E2.1/E2.2/E2.10E1.8E1.1/E2.14/E3.5V2.1/V2.2/V2.3/V2.4/V2.5/V2.7/V2.8S4.1S4.3/S4.5/S4.7S5.1/S5.2S4.6S2.1/S2.2/S2.3/S2.4S3.1/S3.4/S3.5/S3.6/S3.7/S3.8/S3.9/S3.10A2A4A5102-1/102-45/102-50/102-52/102-53/102-54102-14/102-15102-1/102-2/102-3/102-6/102-16102-15/103-2102-18/102-22/102-23/102-24/405-1102-11/102-15/102-30102-25/102-43102-16/102-17/205-2/205-3/206-1/307-1403-7/416-1/417-1302-4/302-5/306-2/306-4103-2/302-4103-2/417-1417-1102-9/204-1/308-2/414-2418-1/102-55102-53102-29/102-31/102-40/102-42/102-44/102-46/102-47/103-1102-35/201-3/401-1/401-2/405-1/405-2/406-1/408-1-409-1404-1/404-2/404-3403-1/403-2/403-3/403-4/403-5/403-6/403-7/403-8/403-9/403-10S1.1/S1.2/S1.3/S1.4/S1.5/S1.6/S1.7/S1.8/S1.9/S1.10/S1.11Environmental,SocialandGovernance(ESG)ReportAppendix8788。