Create an intelligent and bright future
ESG & Social Responsibility Report of
Topband Corporation 2022
Shenzhen Topband Co. Ltd.
Global leading smart control solution provider
About the Report
The Report, as the third corporate social responsibility (CSR) report and second ESG & CSR released by Shenzhen Topband Co., Ltd.
since it was listed in Shenzhen Stock Exchange, mainly discloses the activities and specific performance of Topband in the main fields of
sustainable development such as environmental, social and corporate governance. The Report was deliberated and passed at the 32nd
Meeting of the 7th Board of Directors of the Company which was held on March 29, 2023, and was released together with the Annual Report
2022 of the Company.
Time range
From January 1, 2022 to December 31, 2022.In order to enhance the completeness of the Report, some contents contain appropriate
references to previous years.
Content Scope
The contents of the Report covers the reports of Shenzhen Topband Co., Ltd. and its subsidiaries and branches. For the convenience of
expression, Shenzhen Topband Co., Ltd. may be expressed as "Topband", "Topband", "the Company" or "We".
Explanation of Data and Content
The data and cases that are used in the Report are all from official documents, statistical reports and other documents provided by
relevant departments of the Company. There are no false records, misleading statements or major omissions in the Report. Shenzhen
Topband Co., Ltd. guarantees that the contents of the Report are authentic, accurate and complete. Unless otherwise specified, the monetary
amounts involved in the Report are measured in RMB.
Compilation basis
The Report is prepared on the basis of the Self-regulatory Guidelines for the Companies Listed on the Shenzhen Stock Exchange No. 1 -
Standardized Operation of the Companies Listed on the Main Board and the Self-Discipline Regulatory Guidelines for Listed Companies in
Shenzhen Stock Exchange No. 1 - Business Handling and with the reference to the Sustainability Reporting Standards issued by Global
Reporting Initiative's (GRI Standards) and in combination with the Company's actual situation. Please refer to the section of "Index of
Indicators" for the detailed disclosure of various indicators in the Report.
Report Language
The Report is prepared in Chinese and translated into English. Should there be any discrepancies or misunderstandings between the two
versions, the Chinese version shall prevail. The electronic version of the Report can be downloaded and browsed from the official website of
Topband.
Topband's official website: http://www.topband-e.com/
Contact Information
Contact Department: Securities Department of Topband
Contact address: Topband Industrial Park, Keji Second Road, Shiyan Sub-district, Bao'an District, Shenzhen
Tel: 0755-26957035
Fax: 0755-26957440
Email: wenzh@topband.com.cn
Contents
01 Chairman's Address 33 Society
34 Providing Value Services
43 Stimulating Organizational
Vitality
03 About Topband 55 Building a Sustainable Supply
Chain
04 Company profile
56 Participating in social activities
05 Performance for public good
06 Key Performance Indicators
2022
07 Honor and award
58 Governance
09 Business Overview 59 Strengthening Corporate
10 Major Customers Governance
11 Global Layout 63 Preventing Operation Risks
14 Responsibility Management
15 ESG Governance
16 Assessment of Substantive
Issues
17 Stakeholder Communication
69 Key Performance Indicator (KPI)
18 Environment 74 Index of Indicators
19 Fulfilling Environmental
78 Schedules
Responsibilities
27 Implementing Climate Action
31 Seizing Climate Opportunities
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ESG & Social Responsibility Report of Topband Corporation 2022
Chairman's Address
Wu Yongqiang
Chairman of Shenzhen Topband Co., Ltd.
Dear shareholders, customers, employees and friends from all walks of life
I am very pleased to announce that Topband is about to release its ESG Report 2022.On this occasion, I, on behalf of the Company,
would like to express my heartfelt gratitude to all stakeholders who care and support us.
Topband has always been committed to the creation of a more intelligent and low-carbon world so as to advance human progress. We
firmly believe that sustainable development and innovation are important ways to achieve the objective. As a technology-based company, we
continuously utilize the intelligent technology of "four electrics and one network" to provide our customers with solutions. For the past 26
years, we have been committed to the value pursuits of intelligence and low carbon. We continuously innovate intelligent products and have
delivered over 1.3 billion intelligent products, which brings our customers a smarter and better life. Whether intelligent home appliances and
tools or intelligent industries and IoT, our products and solutions have covered multiple fields and industries worldwide, and have created
value for our customers. Meanwhile, we also promote the storage and use of green energy through the application of new technologies,
continuously improve the energy efficiency of various products and reduce product energy consumption to make products more low-carbon
and environmentally friendly.
We firmly believe that sustainable development and low-carbon objectives can only be achieved through technology and innovation,
which has always been our responsibility and mission. Long-termism is our business philosophy that we adhere to. We firmly believe that
only long-term and sustainable business can bring true value to our enterprise and society. Therefore, in our business, we focus on not only
short-term value but also the creation of long-term value. Our products and services not only meet customers' current needs but also lay the
foundation for our sustainable development in the future.
1
Chairman's Address
Our ESG Report is an important document that showcases our performance in environmental, social and corporate governance to
stakeholders. The Report will introduce our strategies, objectives and action plans in sustainable development and innovation, as well as the
progress we have made in achieving these objectives. In order to ensure the accuracy and transparency of the Report, we conducted an
in-depth analysis of macro trends, reporting standards and industry focus in 2022 by taking into account the Company's business
characteristics and conditions. We also conducted substantive issue assessment in combination with internal and external changes. In the
future, we will continue to work under the guidance of the ESG management system to create greater value for our shareholders and society.
In the past year, we continuously strengthened the deep integration of ESG and corporate operations, focused on cultivating employees'
awareness and abilities in environmental, social and corporate governance, and actively promoted key special-purpose work to achieve the
objective of sustainable development. According to the outline of the "14th Five-Year" Plan, we have set an annual energy consumption
reduction target of 3% in Huizhou Park, and achieved the objective of green production, energy conservation and emission reduction through
measures such as digitization, automation and process innovation. Meanwhile, we, with adherence to the concept of intelligence and low
carbon in product design, have launched a series of low-carbon intelligent products, such as household energy storage, portable energy
storage, heat pumps and other series of products to provide our customers with more intelligent and environmentally friendly choices.
Looking forward to the future, Topband will deepen the integration of ESG and business operations to make our Company achieve a
higher level of sustainable development by continuously attaching importance to sustainable development. We will continue to advance our
work in energy conservation, emission reduction, green production, innovative products and other areas so as to enhance the environmental
awareness and ability of our Company. Meanwhile, we will also focus on the fulfillment of social responsibilities, active attendance in social
welfare activities and contribution to our society.
Under the Background of digital transformation, Topband will continue to strengthen technological innovation and create an "intelligent
+ low-carbon" industrial ecosystem. Based on the user-centered service principle, we will provide our customers with more intelligent,
efficient and reliable products and services to meet their constantly changing needs. In the meantime, we will actively promote the concept of
"green development and low-carbon life" and contribute to global sustainable development.
Finally, I would like to express my gratitude to all the partners who have cooperated with Topband, to all the employees who have
contributed to the sustainable development of Topband, and to all the shareholders who have supported Topband. We believe that the
objective of sustainable development can only be achieved on the basis of our joint efforts and mutual support. Let's work together to create
an intelligent and bright future.
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ESG && Social Responsibility Report ofof Topband Corporation 2022
ESG Social Responsibility Report Topband Corporation 2022
About Topband
3
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About Topband
Company profile
Established in 1996, Shenzhen Topband Co., Ltd. (stock code: 002139) was listed on the Shenzhen Stock Exchange in December 2007.For
the past 26 years, the Company has focused on the intelligent control field and continuously accumulated technical experience and product
solutions around the intelligent control business. It has formed a comprehensive technical system of "four electrics and one network"
(electronic control, motor, battery, power supply and Internet of Things) to provide intelligent control solutions for downstream complete
machine manufacturers in industries such as tools, home appliances, new energy, industry and intelligent solutions. Now we have a high
reputation and brand awareness in the intelligent control industry. We have become not only a global leading provider of intelligent control
solutions, but also a leader in intelligent control business in home appliance and tool industries other than an innovation leader in new energy
and industries.
Global leading smart control solution provider
N + Intelligent Control Solutions in
Several Industries
Home appliance Tool industry New energy industry Industry Intelligent solutions
industry
Technology-driven Technology-driven
development development
Core technology of "four
electrics and one network"
IoT platform
Electric control Motor technology Battery technology Power source
technology technology
Providing Value to our Customers with Intelligent Control Technology and Benefit Everyone
The Company is a nationally recognized Enterprise Technology Center, a national high-tech enterprise, a pilot demonstration enterprise of
the local standards of Shenzhen and an enterprise obtaining AEO advanced certification. It has won the Shenzhen Industrial Award and the
single champion of China's manufacturing industry for smart home control modules. The Company's central laboratory has obtained national
laboratory recognition certified by China National Accreditation Service for Conformity Assessment (CNAS) and NLC5.0 certification, and
has been recognized as a member unit of the "Guangdong Research Center of Smart Home Control and Interaction Engineering Technology"
and Guangdong Innovation Center of Smart Home. The Company and some important subsidiaries have successively passed ISO9001
quality management system certification, QC080000 hazardous substance process management (HSPM) system certification and IATF16949
automotive quality management system certification.
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ESG & Social Responsibility Report of Topband Corporation 2022
Mission Vision
Providing Value to our Customers with Becoming a Global Leading and
Intelligent Control Technology and Respectable Provider of Intelligent
Benefit Everyone Control Solutions
Mission and
vision
Core values: Business Philosophy
Great ambition, sense of mission, Value co-creating and value
driving force sharing
Insist on technical value
Respect, tolerate
Make continuous progress, pursue
excellence
Serve customers
Develop together
Performance: Stable leading position in the industry, leading the ◥
rapid development of the intelligent control industry
In 2022, the Company's operating income achieved the growth against the trend, namely, RMB 8.875 billion, and it is still on a
three-year double pace.
Operating Income of the Company from 2015 to 2022 (unit: RMB 100 million)
2015 2016 2017 2018 2019 2020 2021 2022
Continuously Rising in the Ranking of Top The Proportion of Business Sales in 2022
500 Enterprises in Shenzhen
128
Intelligent solutions 2.13%
139
Others 0.79%
143 Industry 2.80%
172
199 New energy
22.94% Tools 36.51%
Home appliances
34.84%
2018 2019 2020 2021 2022
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About Topband
Key Performance Indicators 2022
Net profit attributable to
Operating income Net profit attributable to shareholders of the listed
Net profit attributable to shareholders of the listed companies after deduction of
RMB 8.875 billion shareholders of the listed companies after deduction non-recurring profits and losses
companies of non-recurring profits (Add-back equity incentive
and losses expenses)
RMB 583 million RMB 615 million
RMB 484 million
EPS (basic) R&D investment Proportion of R&D R&D personnel
RMB 0.46 RMB 720 million investment 1,776 persons
8.11%
Total tax payment Total assets Net assets Net cash flow from
(including tax payment at RMB 10.331 billion RMB 5.731 billion operating activities
home and abroad) RMB 491 million
RMB 279 million
Expected distribution Repurchase amount Number of employees Customer satisfaction
amount RMB 52 million 8,379 persons 89.08
RMB 76 million
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ESG & Social Responsibility Report of Topband Corporation 2022
Honor and award
Market recognition
Acquisition date Subject Name of Awards Grant Subject
February 2022 "Intelligent Excellent Intelligent Manufacturing Ministry of Industry and Information
Warehousing" of Scenarios 2021 by the Ministry of Technology of the People's Republic of China,
Shenzhen Topband Industry and Information Technology National Development and Reform
of the People's Republic of China Commission (NDRC), Ministry of Finance of
(Intelligent Warehousing) the People's Republic of China, State
Administration for Market Regulation
September 2022 Shenzhen Topband Top 500 Enterprises in Shenzhen Shenzhen Enterprises Federation and
Shenzhen Entrepreneurs Association
November 2022 Shenzhen Topband The Most Popular Development OFweek
Platform Award in the IoT Industry
December 2022 Shenzhen Topband Top 500 Manufacturing Enterprises in Guangdong Manufacturers Association
Guangdong Province in 2022 (Ranked
70th)
June 2022 Huizhou Topband Annual Taxpayer Rated as Grade A in Taxation Bureau of Huizhou
Tax Credit Rating in 2021
September 2022 Huizhou Topband National Intellectual Property China National Intellectual Property
Preponderant Enterprise Administration
December 2022 Huizhou Topband Top 500 Manufacturing Enterprises in Guangdong Manufacturers Association
Guangdong Province in 2022 (Ranked
94th)
December 2022 Topband Battery Top 10 Energy Storage Batteries in Starting Point Lithium Battery Big Data, SPIR
China in 2022
December 2022 Topband Battery Green Battery Benchmark Enterprise Starting Point Lithium Battery Big Data, SPIR
in 2022
December 2022 Shenzhen Topband The Most Influential Lithium Battery Starting Point Lithium Battery Big Data, SPIR
BMS and Safety Management Brand
in 2022
December 2022 Shenzhen Topband Supplier Sustainable Development Philips
Performance Improvement Award
January 2023 Shiyan Branch of "Shenzhen Health Enterprise" in 2022 Health Commission of Shenzhen Municipality
Shenzhen Topband
Co., Ltd.
7
About Topband
Quality recognition
Acquisition date Subject Approved Name Grant Subject
May 2022 Topband Battery Laboratory Laboratory qualification accredited SGS-CSTC Standards Technical
by CTF Services Co., Ltd.
July 2022 Topband Lithium Battery Have passed UL 9540A Test SGS-CSTC Standards Technical
Household Energy Storage Services Co., Ltd.
Products
November 2022 Huizhou Topband Central Have obtained CNAS L17400 China National Accreditation
Laboratory Laboratory Accreditation Service for Conformity Assessment
November 2022 Shenzhen Topband "T-smart" The Most Popular Development OFweek
Platform Platform Award in the IoT Industry
December 2022 Huizhou Topband "Liron Phosphate Famous High-tech Products of Guangdong Hi-Tech Enterprise
Battery for Communication" Guangdong Province in 2022 Association
Capital Market Recognition
Acquisition date Subject Approved Name Grant Subject
January 2023 Shenzhen Topband A-share "Investment-Related Elite Royalflush
Award" in 2022
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ESG & Social Responsibility Report of Topband Corporation 2022
Business Overview
Industry Application Scenario Product category
Home
appliances
Tool
New energy
Industry
Intelligent
solutions
9
◥
About Topband
Major Customers
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ESG & Social Responsibility Report of Topband Corporation 2022
Global Layout
With its R&D headquarters located in Shenzhen, China, Topband has initially formed an international layout of "basing itself on
domestic market, expanding overseas markets and being close to our customers". At the beginning of its establishment, the Company
regarded "close customer relationship" as its strategic development focus, and built its R&D and production bases in the main production
areas of Chinese home appliances - the Pearl River Delta and Yangtze River Delta regions. With the continuous expansion of downstream
applications, the Company has gradually possessed a highly advantageous overseas customer service capability in the fields of tools and new
energy. In addition, the Company, as an enterprise in the domestic intelligent control industry, has become a pioneer in the international
layout. In 2016, the Company selected its first overseas site and established its subsidiary in India. In 2019, the Company expanded its
production capacity in Vietnam. In 2021, the Company established its factories in Romania and Mexico. The pace of internationalization of
Topband is constantly accelerating. A global manufacturing base layout system has been formed in Vietnam in Southeast Asia, India in South
Asia, Mexico in North America and Romania in Europe. With the hope of seizing the advantage of the global intelligent control market
worth RMB 1 trillion and working together with global partners to create the future, Topband has also established 17 production/R&D bases,
more than 30 operation centers and offices in multiple regions around the world.
Headquarters in Shenzhen
Production Base/R&D Center
Subsidiary/Office
Domestic
Sweden subsidiaries/offices
The United Kingdom Beijing, Shanghai, Taizhou,
Suzhou, Nanjing, Hong
Germany Kong, Yunnan, Guiyang
The United States Timisoara, Romania
Qingdao
Japan
Israel Chongqing Ningbo, Hangzhou, Taixing, Nantong
Huizhou
Pune, India
Monterrey, Mexico Shenzhen
Binh Duong, Vietnam
Dong Nai Province, Vietnam Singapore
South Africa
The Vietnam Operation Center in Southeast Asia expanded rapidly
In 2022, through continuous efforts, Vietnam Dong Nai subsidiary, the Southeast Asian Operation Center successfully came into
operation, and the number of employees increased rapidly, with the proportion of local employees reaching 93%, thus the processing
costs significantly decreased, and profitability steadily improved. Topband also achieved the transfer of production capacity from its
Pingyang production base to its Dong Nai production base, which not only provides the Company with a stable Vietnamese platform
but also improves its operational efficiency and localized competitiveness in Southeast Asia.
Vietnam Topband - Southeast Asian Operation Center Vietnam Topband - Southeast Asian Operation Center
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About Topband
The production capacity of India Operation Center in South Asia is enhanced
In 2022, the India Operation Center in South Asia quickly regained its vitality of market supply and demand. Its Indian
subsidiary made new breakthroughs in the local Indian market. Its annual sales doubled against the trend and achieved its profit
target in a short period of time. Up to now, the proportion of local employees in its Indian subsidiary has reached 99.8%, gradually
realizing a localized operation and management model and laying a solid foundation for the stable development of Topband in the
Indian market. The Indian subsidiary will achieve a leading level in local technology and playing a leading role in local industry,
which provides a new template platform for Topband's international development.
India Operation Center in South Asia India Operation Center in South Asia
Ningbo Operation Center in East China went into operation
On March 7, 2022, Topband Ningbo Operation Center began mass production, marking a new stage for Topband Group's layout
in the Yangtze River Delta market. Ningbo Topband, the East China Operation Center, is the Company's first self-built operation base
in the region. It aims to create a high standard intelligent and digitalized factory and to respond to the national strategy of "the
integrated development of Yangtze River Delta". In recent years, the Company's business has been growing steadily, and its
production capacity and talent demand has also been increased. The factory provides favorable conditions for the Company to
expand its business in the Yangtze River Delta market, it can respond more quickly to the production and R&D needs of the
customers around it. In addition, it can recruit talents nearby, reduce operating costs and enhance profitability.
Ningbo Topband - East China Operation Center Ningbo Topband - East China Operation Center
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ESG & Social Responsibility Report of Topband Corporation 2022
North American Operation Center went into operation
Mexico Topband Company Limited, Topband North America Operation Center, is located in Monterey, the largest industrialized
city of Mexico. The factory covers a total area of 43,000 m2, with a construction area of 18,610 m2 and a total investment of over
RMB 100 million. In the future, dozens of SMT and DIP production lines will be planned, which can quickly meet the local demand
for new production capacity.
Topband Mexico - Topband North America Operation Center Topband Mexico - Topband North America Operation Center
European Operation Center went into trial production
Topband European Operation Center is located in Timisoara, the largest city in western Romania. The first phase of the factory
covers an area of 17,000 m2, with a construction area of 11,000 m2 and a total investment of USD 30 million. Currently, there are 2
SMT and 4 DIP production lines, and 8 SMT and 17 DIP production lines are planned to be built in the second phase, which can
quickly meet the new production capacity needs of Europe.
Topband Romania - European Operation Center Topband Romania - European Operation Center
13
Environment
Responsibility Management
Responsibility Management
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ESG & Social Responsibility Report of Topband Corporation 2022
ESG Governance
Based on the five major strategies of "scale growth, close customer relationship, innovation-driven development, agile operation and
organizational evolution", Topband has developed corresponding management indicator systems and continuously optimized them to
promote management by means of indicator systems. The Company has achieved steady growth in financial operations and ESG
(environmental, social and corporate governance), and continues to track and assess the Company's sustainable development capabilities in
all aspects, thus promoting the establishment of a sustainable development model.
With "making the world more 'intelligent' and 'low-carbon'" as its positioning in the long-term social value for development, Topband
promoted the deep integration of ESG and business operation to improve the quality of the enterprise. Topband actively guides various
business units and functional departments to enhance their capabilities in environmental, social and corporate governance, while each
functional department needs to collaboratively promote relevant special work according to their division of labor.
Topband stressed importance of ESG information disclosure. It regularly released reports and disclosed the performance trends using its
WeChat official account in addition to the establishment of an information disclosure system and an effective communication platform. With
reference to international standards such as GRI and TCFD, as well as domestic requirements such as the Requirements for Disclosing Social
Responsibility Reports of the Companies Listed on the Shenzhen Stock Exchange, the Company has been issuing its social responsibility
reports together with its annual reports since 2020, and ESG & social responsibility reports have been issued since 2021. All of the reports
have been deliberated and published by the annual meeting of board of directors. Topband believes that information disclosure is one of the
important ways to promote its management improvement. The Company continuously perfects ESG issues and indicators and enhances
accountability and management level through preparation, benchmarking and evaluation.
For a long time, Topband, with adherence to the core values of "helping our customers make achievement and realize common
development" and the concept of "equality, health, fairness and justice", actively embraced partners with common values to create a healthier
ecological environment for the purpose of mutual benefit and common growth. The sustainable development performance of Topband is
recognized by the industry because the Company commits to ESG governance for a long term, actively embraces partners, promotes
innovative development and makes breakthrough. In the future, Topband will constantly strengthen the construction of ESG governance
system and the Company's social responsibility awareness, actively explore innovative development models to promote technological
innovation and green transformation, and to create more value for society, environment, shareholders and stakeholders.
Philips Sustainability Improvement Award in Supplier Sustainability Performance Program
15
◥
Environment
Assessment of Substantive Issues
Topband continuously optimizes ESG management practices. In 2022, the Company Environment
conducted another substantive issue assessment in accordance with internal and external
Greenhouse gas management
changes. By identifying and distinguishing the importance of different issues, Topband
conducted information disclosure in a targeted manner, effectively responded to the concerns of Combat with climate change
stakeholders, and promoted the improvement of ESG management accordingly to improve the Environmental management and
ESG management system and guide daily work.
opportunities
Based on the Company's business characteristics and conditions, Topband conducted Water resource management
in-depth analysis of macro trends, reporting standards and industry focus, and initially identified Pollutant management
key stakeholders and an issue library consisting of 20 issues. Then, the Company invited internal
Waste management
and external stakeholders such as employees, customers and suppliers to score each issue and
provide feedback through questionnaire research, with 147 valid questionnaires collected in total.
After summary, analysis and internal review of the Company's management, we have drawn an
importance matrix of ESG substantive issues to present the importance of each issue from two
dimensions: "the importance of economic, environmental and social impacts" and "the impact on Society
stakeholder assessment and decision-making". We have determined the disclosure focus of the
Employment of employees and their
Report and the plan of future management work.
rights and interests
Occupational safety and health
High-impact on stakeholder assessment and decision-making
Employee development and diversity
Employee care and communication
Product R&D and Innovation
High-quality products and services
Responsible supply chain
Social welfare
Governance
Corporate Governance
Protection of shareholders' rights and
interests
Compliance operation
Risk management
Information security and privacy
protection
Low The importance of economic, environmental and social impacts - high
Business ethics
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ESG & Social Responsibility Report of Topband Corporation 2022
Stakeholder Communication
The Company attaches great importance to the communication with key stakeholders. It has established a diversified communication
mechanism so that the different demands of stakeholders in the ESG field can be carefully understood through various channels and be
actively responded to with the purpose of forming a stable, good and sustainable mutual trust relationship. Our communication channels
include but not limited to the general meeting of shareholders at regular intervals, questionnaire surveys, regular face-to-face communication
with stakeholders like our customers, and participation in various ESG forums. We will continue to improve communication mechanisms,
maintain close contact with key stakeholders, and jointly promote the continuous progress of ESG governance work.
Expectations and
Stakeholders demands Response and communication
Greenhouse gas Combat with Response to national policies
management climate change Law-abiding and compliant operation
Environmental Water resource Practicing green development
management and management
opportunities Waste management
Government and Pollutant Corporate
regulatory
management Governance
institutions
Compliance Information
operation security and
Business ethics privacy protection
Corporate Protection of Strengthen information disclosure and response (the
Governance shareholders' rights general meeting of shareholders, investor exchange,
Compliance and interests performance briefing, investor phone calls,
operation Risk management Shenzhen Stock Exchange irm.cninfo.com.cn
Shareholders and platform, IR (investor relations) applets)
other investors Strengthen corporate governance
Maintain shareholder rights and interests
Law-abiding and compliant operation
Product R&D and High-quality Provide high-quality products and services
innovation products & Strengthen customer privacy security and protection
Information security services Adhere to business ethics
Customers and privacy Business ethics
protection
High-quality Responsible supply Strengthen supply chain management
products & services chain Conduct supplier training
Suppliers and other Business ethics Adhere to business ethics
partners
Employment of Occupational Protect employee rights and interests
employees and their safety and health Ensure occupational safety and health of employees
rights and interests Employee care and Promote employee development
Employee communication Strengthen employee communication
Employees development and (the congress of workers and staff, Journal of
diversity Yanxingzhe, Colleague Bar, Employee Experience
Platform)
Social welfare Carry out voluntary service activities
Conduct charity donations
Community
17
Environment
Environment
Environment
For a long time, Topband has attaches great importance to the
environmental impact of the enterprise. With adherence to the social
value positioning of "making the world more 'intelligent' and
'low-carbon'", it has been exploring the practical path of the organic
unity of environmental benefits and economic and social benefits. In its
work, Topband adheres to the work policy of "putting emphasis on
prevention, combining prevention with treatment" in environmental
protection, and is committed to achieving the "three synchronizations"
of synchronous planning, synchronous implementation and
synchronous development among production, construction and
environmental protection. In the meantime, Topband has established an
environmental management system that complies with the ISO14001
standard, which collaborates with the Company's core technology of
"four electrics and one network" in electronic control, motor, battery,
power supply and IoT platforms to jointly create an intelligent and
low-carbon green sustainable development ecosystem.
Affordable and Industry, Sustainable cities Responsible Climate action
clean energy innovation and and communities consumption
infrastructure and production
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ESG & Social Responsibility Report of Topband Corporation 2022
Fulfilling Environmental Responsibilities
Environmental compliance is a fundamental requirement for enterprises to fulfill their environmental responsibilities. In accordance
with laws such as the Environmental Protection Law of the People's Republic of China, the Law of the People's Republic of China on the
Prevention and Control of Environmental Pollution by Solid Waste, and the Law of the People's Republic of China on the Prevention and
Control of Pollution from Environmental Noise, as well as other applicable laws, regulations and policy documents in the regions where its
global business is located, Topband has formulated a detailed internal environmental management system to systematically manage the
environmental footprint of waste, pollutants and water resources. Topband also formulates clear environmental indicators and action plans
every year with the reference to legal and regulatory requirements and industry practices, and tracks and summarizes the achievement of
relevant objectives at the end of the year.
In order to better implement environmental responsibility, Topband has established a graded environmental management system. The
leader of the Company comprehensively leads and coordinated environmental protection work, and the administration department and
manufacturing center respectively promote the Company's environmental performance from the aspects of institutional construction,
production management, emission monitoring and others to ensure that the Company's environmental performance is measurable and
controllable.
General Manager
The first person in charge of environmental management
comprehensively assume the responsibility for the
environmental protection work of the entire company
Office of the General Manager
Administration department Manufacturing Center
Preside over the daily work of the Company's Regularly monitor the Company's pollutant emissions to
environmental management ensure that the pollutant emissions comply with laws,
Formulate an environmental protection management regulations and other requirements
system, implement relevant environmental laws and Strengthen production process control and bring the
other policy documents reduction in the environmental impact of the production
Establish and manage archives and ledgers process into daily management
Invite external agencies to monitor the Company's
environmental indicators
Improve our employees' awareness of environmental
protection
Organizational Structure of Topband' Environmental Management Work
In addition to the management in the impact of environment on Topband itself, Topband has also implemented the downstream
extension of environmental management in practice. By signing the Agreement on Environment and Occupational Health and Safety of
Interested Parties with Interested Parties such as suppliers, construction units, logistics companies and recycling companies, Topband ensures
that the environmental impact and resource utilization of suppliers during the provision of products and services are managed and monitored,
thereby improving the environmental friendliness of the supply chain and better implementing the requirements of the environmental
management system.
Environmental Management Practice of Topband's Supply Chain
Topband continuously tracks the updates of environmental regulations and policy documents, retains the compliance of Topband's
environmental management standards, and ensures the continuous improvement and effective operation of the Company's
environmental management system.
Organize the divisions and suppliers to conduct the training in environmental protection knowledge so that they can successfully
pass the examination of QC080000 external auditor.
The Company's device engineering department collaborates with the supply chain and the environmental protection specialists of
business department to cooperate with its customers in investigating the use of harmful substances in various divisions, maintaining
customers' environmental protection systems (updating and uploading data, handling customer feedback), and assisting its customers
in investigating the use of conflict minerals (gold/tantalum/tin/tungsten/cobalt/mica).
19
Environment
Greenhouse gas management
According to the Guidance for Quantification and Reporting of the Organization's Greenhouse Gas Emissions (SZDB/Z 69-2018), a
technical document on the guidance for Shenzhen standardization, Guidance for Verification of the Organization's Greenhouse Gas
Emissions (SZDB/Z 70-2018), a technical document on the guidance for Shenzhen standardization, Key Points for Carbon Emission
Verification Technology of Carbon Trading Control Units in Shenzhen and other applicable laws, regulations as well as relevant standards,
Topband hires qualified third-party institutions every year to verify the greenhouse gas emissions of Scope 1 and Scope 2 within the
organizational and reporting boundaries. The type of greenhouse gas involved in the verification is carbon dioxide.
Greenhouse gas emission 1 of Topband
Indicator (unit) 2020 2021 February 2022
Total greenhouse gas emissions (tCO2e) 10,994.14 12,355.16 11,848.36
Scope 1 Direct greenhouse gas emissions (tCO2e) 180.12 120.93 120.17
Scope 2 Energy indirect greenhouse gas emissions (tCO2e) 10,814.02 12,234.23 11,728.19
Natural gas (natural gas stove), diesel
(standby generator) 120.17 tCO2e
Outsourced electricity (all electrical
Scope I 1% facilities and equipment) 11,728.19 tCO2e
Scope II 99%
Composition of Greenhouse Gas Emission Activities of Topband
1
(1) The data includes all activities related to CO2 emissions in the production, office, and living areas (excluding the electricity utilization in
dormitories) in Shenzhen Topband Co., Ltd. and Shiyan Branch of Shenzhen Topband Co., Ltd. The emission facilities and equipment
include emergency generators (3 units, diesel generator), natural gas stoves (14 units, natural gas) for canteens, and all electrical facilities for
production, office and canteens.
(2) The electricity consumption of subsidiaries such as Shenzhen Topband Automation Technology Co., Ltd. and Shenzhen Meanstone
Intelligent Technology Co., Ltd. shall be deducted based on the electricity invoice issued by Shenzhen Topband Co., Ltd. The Company's
shuttle buses and trucks are all rent vehicles, the fuel cost of which shall be borne by the lessee in accordance with the contract.
2
The greenhouse gas emission data of 2022 are preliminary data, and the final data is subject to approval by the Shenzhen Municipal Bureau
of Ecology and Environment.
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ESG & Social Responsibility Report of Topband Corporation 2022
Explanation of the quantitative method for greenhouse gas
Category Subclass Emission source Quantitative methods and formulas
Stationary Canteen stoves Emission factor method:
combustion (natural gas) CO2 emissions from natural gas = emission factor 2
* natural gas
emissions consumption * GWP value
Stationary Emergency Emission factor method:
Scope 1 combustion generator (diesel) Diesel CO2 emissions = emission factor * diesel consumption *
Direct emissions GWP value
greenhouse
Mobile combustion None
gas emissions
emissions
Process emissions None
Fugitive emissions Carbon dioxide fire Identification only but free of quantification
extinguisher
Outsourced Power/all electrical Emission factor method:
Scope 2
electricity facilities CO2 emissions from outsourced electricity=consumption of
Energy
outsourced electricity * emission factor of electricity * GWP value
indirect
greenhouse Outsourced heat None
gas Outsourced cold None
emissions
Outsourced steam None
2
The emission factors involved in the article are all sourced from the appendix of the Guidance for Quantification and Reporting of the
Organization's Greenhouse Gas Emissions (SZDB/Z69-2018).
21
Environment
Waste management
In order to strengthen the management of the Company's hazardous wastes, prevent hazardous wastes from polluting the environment
and ensure human health, Topband and some of its subsidiaries have formulated relevant environmental protection systems in accordance
with laws and regulations (such as the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by
Solid Waste, the National Catalogue of Hazardous Wastes) and other applicable laws, regulations and policy documents in the regions where
the global business is located, for instance, Waste Management System, Management System of the Hazardous Waste for Environmental
Protection and others. In addition, a pollution prevention and control work leading group, which is led by the Company leader and composed
of leaders of functional departments has been established to make decisions, supervise and coordinate various environmental protection work
of the Company. The Company also regularly conducts employee training for environmental protection in accordance with the requirements
for standardized management of hazardous waste and the supervision system.
Topband has established a management system of hazardous waste ledger to
comprehensively grasp the types and quantities of hazardous waste in the stages of storage,
utilization and transportation. The data on the hazardous waste management platform is
maintained by specially-assigned persons. During the storage, utilization and transportation of
hazardous waste, accurate, obvious and eye-catching warning signs and signboard shall be set up
in accordance with national standards. The collection, storage and transfer of hazardous waste
shall be conducted in strict accordance with characteristics of the hazardous waste which has
Management System of incompatible properties but hasn't been safely disposed of to prevent hazardous waste from
Hazardous Waste being mixed during collection, storage, transportation and transfer. The Company has also
established a special warehouse for hazardous waste transfer which is managed by a
specially-assigned person, and has entrusted the disposal of end-of-life hazardous waste to
qualified suppliers.
Topband has also formulated an emergency plan for hazardous waste and reported it to
Shenzhen Municipal Bureau of Ecology and Environment for filling in accordance with the
potential accidents such as hazardous waste leakage and scattering during the collection, storage
and utilization of hazardous waste within the Company's factory area.
Topband implements the system of "supervision and handling under public supervision" for
the major hidden dangers that are complex, difficult to be handled in a short time, and may cause
greater environmental hazard (for example, more than a larger secondary environmental risk
caused by the toxic and harmful substances that go into atmosphere, water, soil and other
environmental media). Such hidden dangers are supervised and handled by the Company's Work
Safety Committee. The major accident hazards supervised and handled under public supervision
are announced and disclosed in public to specify the responsible person and the time limit of
rectification and supervisory department and to formulate governance plan. The divisions,
Investigation, Management workshops and relevant personnel that didn't thoroughly investigate hidden dangers or report
and Supervision System of hidden dangers in a timely manner, or implement the responsibilities, or rectify hidden dangers
Environmental Safety in place shall be earnestly investigated for their responsibilities. Any department or person that
Hazards ineffectively rectifies hidden dangers or results in environmental accidents or serious
consequences shall be investigated for their responsibilities strictly and severely.
For general hazards that can be immediately rectified, eliminated in a short period of time
via process adjustment, and will not cause sudden incidents in atmosphere, water or soil,
Topband inspects environmental hazards on a monthly basis. The participants will promptly
report and summarize the safety inspection of hazard items after the environmental inspection is
completed. The inspection notification of environmental hazards will be issued throughout the
Company the next day, requiring the divisions to complete the rectification on schedule in
accordance with the requirements.
The Company regularly conducts three-level (the Company, workshops and team)
education for new employees and trains the employees transferred between and within
workshops in environmental protection. The training contents include laws, regulations and
Training system for
standards concerning the management of hazardous waste, basic knowledge of hazardous waste,
environmental protection
management system and operating procedures of hazardous waste, correct use and maintenance
of the protective equipment and personal protective equipment of hazardous waste, emergency
rescue measures in case of accidents, etc.
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ESG & Social Responsibility Report of Topband Corporation 2022
Topband continuously consolidates its hazardous substance monitoring capability
In 2022, Topband expanded its Huizhou Topband Environmental Protection
Laboratory, purchased relevant testing equipment, improved its ability to detect harmful
substances such as REACH and TSCA, and broadened the range of environmental testing
capabilities for electronic products. The relevant testing and certification capabilities have
been recognized by the China National Accreditation Service for Conformity Assessment
(CNAS), which provides a strong guarantee of testing and certification capabilities to
ensure the environmental compliance of products.
Huizhou Topband has been recognized
by CNAS
Annual Environmental Management Objectives and Performance
Actual
Environmental Assessment Performance Achievement
Objective Indicator Calculation Method Frequency in 2022 of Objectives
The actual processing
data/total waste
generated of the
100% Once/year 100%3 Achieved
Disposal of hazardous waste
hazardous waste treatment platform *
100%
The amount of waste
per RMB ten thousand Annual waste volume
of output value has (unit: Kg)/annual Basically
Waste volume Once/year 4.89%4
decreased by 5% output value (unit: achieved
reduction per unit compared with that last RMB ten thousand)
year
3
The data includes the proportion of hazardous waste disposal in factories in Huizhou Topband, Vietnam, Ningbo, Taixing and Shenzhen.
4
The data includes the waste volume reduction per unit in Huizhou Topband.
23
Environment
Pollutant management
Topband has established a comprehensive pollutant management system to manage the waste gas, noise and chemicals produced in
production. In order to understand the impact of comprehensive pollutant utilization on the environment, so as to improve methods,
strengthen management and improve environmental quality, the Company regularly entrusts qualified units to carry out environmental
monitoring on each project to check whether the exhaust gas in the ambient air at the production site and the environmental noise at the plant
boundary meet the emission targets. In case of environmental impacts caused by emergencies or equipment faults, the Company will add
temporary monitoring.
Exhaust emission management
Topband has formulated the Guidelines for Sewage and Waste Gas Emission and Noise Control according to the laws and regulations to
prevent or reduce the pollution of waste gas to the environment and the harm to employees. Relevant regulations are formulated in
accordance with the Integrated Emission Standard of Air Pollutants (GB 16297-1996), the Emission Standard of Pollutants for Battery
Industry (GB 30484-2013), the Emission Limits of Air Pollutants (DB 44/27-2001) (the local standard of Guangdong Province) and the
relevant laws and regulations of the plant location, and the corresponding subdivision standards and specifications on specific issues are
followed.
On the basis of perfecting the system construction, Topband has taken a series of measures to control the Company's exhaust emissions
and ensure good air quality and occupational health and safety environment in the plant, so that the exhaust gas in the plant can circulate
effectively and prevent or reduce pollution and potential harm:
The equipment with large exhaust emissions and great impact on the environment is equipped with exhaust treatment devices to
ensure that exhaust emissions meet the requirements of laws and regulations.
All departments are required to take waste gas into consideration when building, rebuilding and expanding and install waste gas
collection devices for pollution-producing equipment and facilities.
When the waste gas generating equipment is working, the waste gas collection device must be turned on, and the direct emission
of waste gas is prohibited. The waste gas generated at the production site is extracted and collected by the exhaust fan at the
operation site and then absorbed by the activated carbon in the waste gas treatment device at the roof of the plant and discharged.
The domestic waste gas generated by the Company's canteen is purified by the kitchen utensils purifier and discharged.
The administration department organizes and arranges environment monitoring/measuring and organizes all divisions to check
whether exhaust emissions meet the standards every year. Monitoring/measuring units are qualified external institutions. Lithium
battery division employs external testing institutions with nationally recognized qualifications for monitoring at least twice a
year.The monitoring/measurement data are summarized to the administration department, which will fill in and publish the
monitoring data on the national pollution source platform and take corrective measures to the unqualified phenomena and track
and manage them.
The annual inspection of the Company's all cars are conducted regularly every year to ensure that exhaust emissions meet the
requirements of laws and regulations.
The education of employees is strengthened to reduce exhaust emissions.
Annual Environmental Management Objectives and Performance
Actual
Environmental Calculation Assessment Performance Achievement
Objective Indicator Method Frequency in 2022 of Objectives
After the exhaust gas is treated Lithium
and reaches the specified According to the battery
standard (Class II standard of statistics of division,
Industrial waste
DB 44/27-2001 shall be reached annual Taixing: Conforming: 5 Achieved
gas emissions
for domestic plants), it will be third-party twice/year
discharged through the pipeline testing results Others:
at high altitude. once/year
5
Data includes industrial waste gas emissions of plants in Huizhou Topband, Ningbo, Taixing, Vietnam and Shenzhen.
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ESG & Social Responsibility Report of Topband Corporation 2022
Noise management
Relevant noise management regulations of Topband are formulated according to the Emission Standard of Industrial Enterprises - Noise
at the Boundary (GB 12348-2008).The Company carries out sound insulation and shockproof protection for instruments and equipment with
large emission noise to ensure that the noise at the boundary reaches the standard. The Company shall organize the monitoring of noise
emission standards at least once a year and employ external testing institutions with nationally recognized qualifications to carry out
monitoring.
Actual
Environmental Calculation Assessment Performance Achievement
Objective Indicator Method Frequency in 2022 of Objectives
The noise at the boundary in
Huizhou, Shenzhen and Taixing
reaches Class III standard of GB
Taixing:
12348-2008; According to the
twice/year
The noise on the east and north statistics of
Ningbo:
Up-to-standard sides of the boundary in Ningbo annual Conforming: 6 Achieved
once/year
noise emissions reaches Class Ⅳ standard of GB third-party
Others:
12348-2008. The noise on the testing results
once/quarter
south and west sides of the
boundary reaches Class II
standard of GB 12348-2008.
Chemical management
Topband has installed anti-leakage devices for all chemical containers, trains new and old employees on safe chemical operation and
other safety knowledge and arranges management personnel to patrol the site regularly to eliminate chemical leakage hazards and supervise
operators to abide by safety operation regulations, so as to put an end to illegal use of chemicals and eliminate the risk of chemical leakage.
Meanwhile, Topband actively abides by RoHS standards (EU Restriction of Hazardous Substances), REACH certification standards
(Regulation for Registration, Evaluation, Authorisation and Restriction of Chemicals) and halogen-free specifications in the product and
package design to reduce the use of harmful ingredients or chemicals from the source. In addition, Topband also actively applies chemical
recycling technologies. For example, in terms of NMP solvents, the Company adopts the advanced cold recovery technology of solvent
evaporation liquid, which can make the solvent recovery rate of the positive slurry reach more than 90%, realizing solvent recovery and
utilization and reducing potential environmental impacts while saving solvent resources.
Environmental Assessment Actual Performance Achievement of
Objective Indicator Calculation Method Frequency in 2022 Objectives
According to the statistics of
Chemical leakage 0 actual chemical leakage Once/month 07 Achieved
accident accidents
6
Data includes noise emissions of plants in Huizhou Topband, Ningbo, Taixing and Shenzhen.
7
Data includes chemical management of plants in Huizhou Topband, Ningbo, Vietnam, Taixing and Shenzhen.
25
Environment
Water resource management
Topband's relevant regulations on the management of water resources are formulated in accordance with the Discharge Limits of Water
Pollutants (DB 44/26-2001) and applicable laws and regulations in other regions where the global business is located, so as to effectively
control the confluence and discharge of rainwater within the Company, standardize the management of domestic and industrial wastewater
discharge and treatment and reduce environmental pollution. Domestic sewage is brought into the municipal pipe network and enters the
sewage treatment plant. Domestic sewage is treated by self-built domestic sewage treatment station in Vietnam and discharged after
compliance. As hazardous waste, industrial wastewater is treated by a third-party qualified hazardous waste treatment company, realizing
zero discharge.
Topband continuously strengthens the management of water resources through comprehensive and diverse measures:
In the process design, the principle of harmful substitution is given priority. When chemicals must be used, those with less
environmental pollution are given priority.
The Company implements rainwater and sewage separation management and strictly separates sewage pipes from rainwater pipes.
When building, rebuilding and expanding, all departments shall consider corresponding rainwater drainage facilities to prevent
untreated sewage from being discharged into rainwater pipes. If it is found that industrial wastewater is mixed with domestic
wastewater, related personnel will be given a warning.
Oils and chemicals used by various departments, hazardous waste liquids and waste residues (such as various wastes, mud and
garbage) shall not be discharged into the rainwater pipe network or washed into the sewer. They will be properly stored in special
recycling containers and handed over to the Company's administration department as hazardous wastes, which will be recycled
and treated by designated units or institutions with recycling qualifications.
Regularly clean the canteen grease trap to prevent the wastewater with high oil content from being directly discharged into the
sewer without separation or treatment. Canteen sewage outfalls are equipped with filter screens. The filtered refuse is treated as
domestic wastes.
It is forbidden to put wastes in the open air. They need to be collected at a designated place or area to prevent sewage from
flowing into rainwater pipes in rainy days.
It is forbidden to wash vehicles in the Company to avoid washing oil stains into rainwater or sewage pipes.
Oils and chemicals dripping on the ground shall be cleaned with a rag and then put in the designated place. It is forbidden to rinse
them with water to flow into the sewer.
The administration department regularly contacts qualified institutions to test the Company's discharged rainwater at least once a
year. When the test results are not in conformity with the Company's environmental test report, the administration department is
responsible for finding the reasons and making improvements. After the improvement is completed, the test will be carried out
again until the specified EIA limit is met.
The administration department shall organize relevant personnel to inspect rainwater pipes regularly.
The education of employees on environmental awareness and other aspects is strengthened to pay attention to distinguish
domestic wastewater from industrial wastewater and save water.
Annual Environmental Management Objectives and Performance
Actual
Environmental Assessment Performance Achievement
Objective Indicator Calculation Method Frequency in 2022 of Objectives
Domestic sewage is brought
into the municipal pipe network
and enters the sewage treatment
plant. Domestic sewage is
Taixing:
treated by self-built domestic
Up-to-standard Up-to-standard twice/year
sewage treatment station in Conforming: 8 Achieved
wastewater discharge Others:
Vietnam. As hazardous waste,
once/year
discharge all industrial wastewater is
treated by a third-party
qualified hazardous waste
treatment company.
The water
The water consumption per
RMB 10,000 of Annual water consumption
consumption Basically
output value is (unit: t)/annual output value Once/year 1.92% 9
per unit output achieved
reduced by 2% (unit: RMB ten thousand)
value is compared to last
reduced year
8
Data includes wastewater discharge in Huizhou Topband, Ningbo, Shenzhen, Taixing and Vietnam.
9
Data includes water consumption per unit output value in Huizhou Topband.
26
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ESG & Social Responsibility Report of Topband Corporation 2022
Implementing Climate Action
China's goal of "peak carbon dioxide emissions and carbon neutrality" brings historic development opportunities for companies aiming
at intelligent and low-carbon development. In Topband's 2030 vision blueprint, the Company regards "low carbon" as one of major trends in
the next decade. Topband focuses on exploring the path of "realizing low carbon in manufacturing industry" and summarizes the climate
action strategies and measures of "energy efficiency increase + new energy increase" and "industrial carbon reduction + conservation for
carbon reduction" by analyzing industry-leading carbon reduction experience. These measures can reduce carbon emissions, improve the
production efficiency and profitability of the Company and achieve a win-win situation of economic benefits and environmental benefits.
"Two increases" - energy efficiency increase and new energy increase
Energy efficiency increase refers to improving energy utilization efficiency. This is realized by low inventory production
and manufacturing collaboration to support rapid product change and improve process management ability, using
low-carbon raw materials, low-carbon treatment of high-carbon energy sources, etc.
New energy increase refers to actively developing non-fossil energy sources, including solar energy, hydropower, wind
power, biogas, hydrogen energy, bioenergy, etc. Topband takes PV power generation as the main breakthrough point of
utilizing non-fossil energy sources. The PV roof of Shenzhen Park has been installed and used.
"Two reduction" - industrial carbon reduction and conservation for carbon reduction
Industrial carbon reduction refers to optimizing and upgrading the industrial structure. Topband invests in the layout of
green business, including lithium battery, energy storage, production automation, industrial automation, frequency
conversion technology, mobile power exchange and green transportation, to optimize and upgrade the industrial
structure.
Conservation for carbon reduction refers to shaping a low-carbon culture. Promote resource recycling, paperless office,
green business and office energy saving, use low-energy equipment and energy-saving and water-saving devices and
increase the coverage area of green plants within the Company.
Greening situation of Huizhou Topband Intelligent Park Greening situation of Ningbo Topband Intelligent Park
27
Environment
Under the carbon reduction strategy of "two increases and two reductions", Topband has set up an environmental management system
(EMS) to co-ordinate the management, promote the work related to environmental protection and emission reduction and investigate the
energy consumption and carbon emissions of key sites. On this basis, Topband's key production departments have set carbon reduction
targets and taken corresponding climate actions. In the future, Topband's all departments will take stronger climate actions one after another
to actively respond to climate change.
The Company lays out the park form of "new energy power generation + energy storage" and
provides solar PV power generation facilities with the installed capacity of 100 KW and 413 KW
Application of respectively for Shenzhen Park and Huizhou Park. Shenzhen Park is also provided with a 1,000
renewable electricity kWh of energy storage system. In 2022, the Company's PV power generation facilities realized a
power generation capacity of 460.74 MWh, and the energy storage system generated a benefit of
RMB 99,500.
The central air conditioning system belongs to high energy consumption equipment. The
Company replaces the old equipment in the central air-conditioner room with magnetic levitation
Energy-saving master and intelligent frequency conversion control equipment to realize intelligent control over
transformation circulating water pump and air handler. They can accurately distribute cooling capacity and
adjust water flow. The transformation is expected to save more than 1 million kWh per year for
the Company, and it can save about 380,000 kWh per year for Shenzhen Park.
By installing a heat recovery machine in the compressed air system and replacing the packing of
the cooling tower, the Company improves the heat exchange efficiency and makes full use of the
Waste heat recovery waste heat generated by the air compressor to provide hot water resources for staff dormitories.
In 2022, 55.67 t of standard coal was saved.
Train employees in energy conservation and climate action, publicize green office concept and
enhance employees' energy conservation awareness.
Optimize office air conditioning and lighting management to reduce energy consumption. The
Company changes the channel lighting to LED energy-saving lamps controlled by human light
sensing switches and formulates corresponding green office systems. For example, the
refrigeration system is started when the room temperature is higher than 26°C; the setting
temperature of the air conditioner is not lower than 26°C in summer; the air conditioner and
lighting are turned off when all people leave the office for a long time.
Promote green office and reduce resource waste. Promote paperless office, require
Green culture double-sided printing of documents, install faucet water savers, cancel paper towels on the
construction wash basin, distribute handkerchiefs to employees, set up a shared stationery desk; drink tea
instead of bottled water when receiving guests, so as to prevent the waste of resources in use.
The Company continuously evaluates the reusability of office supplies and production
consumables, promotes products that are still in the life cycle and advocates
cross-departmental circulation.
Use new energy vehicles instead of fuel vehicles as daily traffic vehicles and commuter buses
and encourage the green commuting of employees.
New energy commuter buses New energy commuter buses
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ESG & Social Responsibility Report of Topband Corporation 2022
Annual Environmental Management Objectives and Performance
Actual
Environmental Assessment Performance Achievement
Objective Indicator Calculation Method Frequency in 2022 of Objectives
The electricity
Annual electricity
The electricity consumption per
consumption (unit:
consumption per RMB 10,000 of Basically
KWH)/annual output Once/year 2.99% 10
unit output value is output value is achieved
value (unit: RMB ten
reduced reduced by 3%
thousand)
compared to last year
Practical example of the strategy of "two increases and two reductions" - the "14th Five-Year" Energy Saving Plan of Huizhou
Topband Electric Technology Co., Ltd.
Huizhou Topband Electric Technology Co., Ltd. (hereinafter referred to as "Huizhou Topband") is the main production park of Topband,
and it is also the top priority of Topband's environmental management. Huizhou Topband prepares the "14th Five-Year" Energy Saving Plan
of Huizhou Topband Electric Technology Co., Ltd. (hereinafter referred to as the Plan) based on the Energy Conservation Law of the People's
Republic of China, the Measures for Energy Conservation Management of Key Energy-using Units, the Guangdong Energy Conservation
Regulations and other laws and regulations as well as the General Principles for Stipulation of Enterprise Energy Conservation Plan (GB/T
25329-2010), the Determination of Energy Savings In Organizations (GB/T 13234-2018) and other technical standards to guide the planning
of the Company's energy management from 2021 to 2025, so as to implement the Company's main responsibility for energy conservation, tap
the energy-saving potential and help achieve the goal of "carbon peaking and carbon neutrality".
The Plan focuses on saving resources and improving resource utilization rate and aims to reduce the energy consumption of unit
products and optimize the energy structure by improving energy management systems, improving technologies and eliminating and
transforming backward technologies and equipment based on existing management, technology and equipment conditions, so as to achieve
the goals of energy conservation, environmental protection and resource recovery and comprehensive utilization.
Huizhou Topband has established a three-level energy management network and a comprehensive energy management system. Under
the overall planning of the energy-saving working group, it makes decisions, supervises and compares the energy utilization of each process,
taps the energy-saving potential in combination with energy-saving technological transformation measures, sets energy-saving targets and
promotes the implementation of energy-saving responsibility targets through the assessment system.
Group leader
Administration manager
Deputy group leader
Administration supervisor
Microelectronics Department Electrical Business Electronic Control Department Lithium battery division
Department
Manufacturing center supervisor Manufacturing center supervisor Manufacturing center supervisor
Manufacturing center supervisor
Organizational structure of Huizhou Topband's energy-saving working group
10
Data includes electricity consumption of all production areas, office areas and living areas involved in Huizhou Topband.
29
Environment
In order to effectively reduce energy consumption, Huizhou Topband has set the "14th Five-Year" energy conservation target of 15%
(the absolute quantity is 686 t of standard coal) and the energy conservation target of each year based on the comprehensive energy
consumption in 2020.
"14th Five-Year" energy conservation target
Items Unit 2021 2022 2023 2024 2025 Total
Energy conservation Standard coal (t) (tce) 216 219 91 31.5 128.5 686
Ratio % 31.49% 31.92% 13.27% 4.59% 18.73% 100%
In addition, Huizhou Topband is also very concerned about the improvement of energy consumption intensity. Taking the
comprehensive energy consumption per unit output value (standard coal (kg)/RMB ten thousand) as the energy consumption intensity index,
taking the comprehensive energy consumption per unit output value in 2020 as the benchmark value and combined with key energy
conservation projects to be implemented during the "14th Five-Year" period, it has formulated the goal of reducing the comprehensive energy
consumption per unit output value by 15% as of 2025 and the annual comprehensive energy consumption target and decline rate.
"14th Five-Year" comprehensive energy consumption target and decline rate per unit output value
2020
Items Unit (Benchmark value) 2021 2022 2023 2024 2025
Comprehensive energy kgce/RMB
consumption per unit ten 11.89 11.33 10.76 10.52 10.44 10.10
output value thousand
Cumulative decline rate % — 4.71% 9.50% 11.52% 12.20% 15.05%
30
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ESG & Social Responsibility Report of Topband Corporation 2022
Seizing Climate Opportunities
The global climate crisis caused by greenhouse gas emissions is imminent, and the pressure and motivation of energy conservation and
carbon reduction in various countries are increasing year by year. China has taken active actions to deal with climate change, and its
management and investment in energy production, energy use and ecological protection have brought challenges and opportunities to
Topband.
The Company will actively respond to the national call for green, environmental protection and low carbon, coordinate management and
promote environmental protection and emission reduction with the environmental management system, make full use of its advantages as an
intelligent control company, adhere to green development concept and cooperate with industrial chain partners to continuously carry out
technological and product innovation, create a green and sustainable development ecology and help the country achieve the goal of "carbon
peaking and carbon neutrality".
With the goal of intelligent and low-carbon development, Topband pays attention to the low-carbon and intelligent design of products in
product research and development, realizing business development and environmental protection.
Topband lithium battery appeared at American solar energy exhibition
On September 20, 2022, Topband lithium battery
appeared at Solar Power International, one of the largest
solar professional exhibitions in the world. Professional
energy storage lithium battery products and solutions were
displayed.
As an innovative leader of new energy industry
solutions, Topband mainly focuses on two major application
fields: small and medium-scale energy storage and new
energy vehicles and provides customers with inverter, BMS
and other core components and solutions for industrial and
commercial energy storage, household energy storage and
portable energy storage products to help the sustainable
development of the global green economy.
At the exhibition, Topband lithium battery
demonstrated the RS series of household energy storage
products launched for North American market and provided
unlimited power to alleviate customers' electricity shortage
with the system mode of "PV + energy storage".
The RS series of integrated household energy storage
products support PV and commercial power input at the
same time and are equipped with Wi-Fi function, which can
be monitored in real time and warned in time through App.
It has the characteristics of modular design, flexible
collocation and easy disassembly and assembly and is also
suitable for a variety of household energy storage
application environments.
31
Environment
Topband's new energy business layout under the opportunity of carbon peaking and carbon neutrality
Since entering the field of new energy in 2010, Topband has focused on the fields of "small and medium-scale energy
storage" and "new energy vehicles" and supported customers' green transformation with more environmentally friendly
products. In the field of new energy, Topband independently develops the core technology of "batteries + BMS + PCS
+ EMS + cloud platform" and forms a wealth of product solutions, including but not limited to: household energy
storage, industrial and commercial energy storage, portable energy storage, charging and control of new energy
vehicles and other fields. At present, Topband's new energy business has achieved an overall revenue of RMB 2.036
billion.
Topband has continuously researched and innovated the technology of lithium batteries, formed lithium
batteries with multi-material system and multi-product forms to meet the technical requirements of lithium
batteries in different application fields and provided customers with one-stop lithium battery solutions around
the "energy storage + light power" application of lithium batteries. Topband and its related subsidiaries have
applied for more than 300 patents related to lithium batteries. The Company has continuously accelerated the
pace of new technology R&D and application. In 2022, the Company completed the pilot test of sodium-ion
batteries. In the future, with the gradual improvement of the industrial chain, sodium-ion batteries are expected
to greatly reduce the production cost in the battery field and improve the manufacturing efficiency.
The Company acquired Taixing Ninghui Lithium Battery Co., Ltd. and invested in the construction of Nantong
lithium battery production base, which is used to build production lines of square aluminum-shell batteries,
soft-package batteries, large cylindrical batteries and battery packs. The designed total production capacity is 6
GWh for batteries and 4 GWh for battery packs. It is planned to build the new base into a green plant.
The Company continues to iterate over existing battery management system (BMS) products, applies them to
the power reserve system and the power battery system of electric bicycles, simultaneously launches the power
exchange system of electric bicycles and the IoT cloud platform and creates system solutions for batteries,
BMS, battery packs, power exchange cabinets and IoT platform required for green commuting.
The Company has also accumulated a large amount of PCS technologies. Strengthen the R&D and
productization of high-efficiency two-way inverter and other technologies and further minimize the energy
consumption of products through technological upgrading.
The Company actively develops the core technologies of EMS and cloud platform and develops leading energy
management solutions for different application scenarios in combination with its advantages in batteries and
BMS. With more than 140 patent applications in the related technical fields of lithium batteries, Topband
lithium battery is rated as Level A in the TFFI scientific and technological innovation evaluation of Smart Bud.
The application scenarios of the Company's new energy products are very rich and constantly expanding. In
2022, the Company's battery products were successfully applied to the backup battery of 5G base station in the
new infrastructure and the backup battery of the data center in the "East Digital West Computing Project" to
promote the low-carbon transformation of the industrial chain.
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ESG & Social Responsibility Report of Topband Corporation 2022
ESG & Social Responsibility Report of Topband Corporation 2022
Society
Industry, Reduced Responsible
No poverty Good health and Gender equity Affordable and Decent work and innovation and inequality consumption
well-being clean energy economic growth
infrastructure and production
33
◥
Society
Providing Value Services
Product innovation
One of Topband's core values is "There is value in technology". As the industry leader, Topband knows that technology leadership and
innovation are the key to product differentiation and competitive advantage. Therefore, Topband has been constantly improving its
independent R&D ability and technological level. It focuses on the deep integration of technology and market to provide customers with
high-quality, high-performance, highly reliable products and solutions. A complete industrial chain based on the core technologies of
"electronic control, motor, battery, power supply and Internet of Things platform" has been developed, creating a safeguard with the
advantage of leading technology for the Company. Upon constant innovation and constant upgrading, Topband will keep up its technology
leadership, gain the competitive edge in market and be highly recognized by customers, so as to achieve the Company's vision and mission.
Nearly 400,000 products
with Topband's solutions everyday
come into smart families around the world
Topband attaches great importance to R&D investment. In 2022, Topband has got 1,776 R&D personnel, and has applied for 2,946
patents in total. The R&D investment accounts for 8.11%, which is considerably higher than the industry average. In the future, Topband will
keep up an annual R&D investment of 7-8%, continue to introduce core technical talents and leading technical talents, and to enhance the
Company's innovation-driven development strategy.
1,776 2,946 8.11% 21.20%
R&D personnel Patents Proportion of R&D investment Proportion of R&D personnel
to all employees
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ESG & Social Responsibility Report of Topband Corporation 2022
In terms of R&D management mechanism, Topband has introduced the integrated product development (IPD) system and process, with
customer-value-oriented insight into demands, process collaboration and integration development, to create a fast, flexible, efficient and
collaborative product development system, achieving innovativeness, responsiveness and effectiveness in product development. An efficient
R&D organizational structure that consists of three-ground R&D platform of front, middle and back has been established as well. The
foreground is composed of an iron triangle closely coordinated by the solution manager (SR), sales manager (AR) and service manager (FR)
distributed in each BU, directly facing the market and customers. Among them, the solution manager is responsible for understanding
customer demands and providing technical solutions quickly. The middleground is composed of the R&D center of each BG, providing all
departments with professional product platform and technology platform, and providing the market development of the foreground iron
triangle with effective support. The background is composed of the central research institute, carrying out technical pre-research and reserve
of common and core technologies required by future products and markets according to the strategic and product planning of Topband, BG
and BU.
Innovativeness Responsiveness Effectiveness
Insight into
demands
Leading technology Shortened Accurate insight into
platform development cycle demands
Integration Process
development collaboration
Professional team Flexible response to Customer value
service change orientation
Topband integrated product
development (IPD)
Fast and flexible, efficient and collaborative
Foreground
Iron triangle
R&D center
Middleground
Central research
Background institute
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"Acts appropriately to the situation" innovative inverter air conditioner controller
Inverter air conditioner controller is a complex market in India. On the one hand, pulled by the local government's energy
consumption policy, there is a huge market space and booming demand for the inverter air conditioner controller. On the other
hand, enterprises are also required to face special circumstances and complex challenges. In India, there are three major
challenges for the inverter air conditioner controller: wide voltage range, the product should be adaptable from 100 V to 300 V;
high operating temperature, the highest operating temperature of similar products in China is 46℃, but in India, it may reach
50℃; large voltage fluctuation, after power failure, the highest instantaneous pulse voltage will reach 700 V, which is much likely
to cause damage to electronic parts and components.
In the face of such complex market circumstances and challenges, Topband team has been adhering to the mentality of
"facing the difficulty" and completed the breakthrough. This is not only a breakthrough and innovation in past technology, but also
a challenge to the physical strength and willpower of R&D personnel. The 55℃ high-temperature simulation laboratory was hard
to bear. Each test lasted for two weeks, and a shift was needed to get some fresh air every half hour. After many times of selection
and adjustment of parts and components, special processing of control algorithm and countless software adjustment, a low failure
rate of the product in harsh environments was finally achieved. Topband became one of the first controller manufacturers to be
BIS certified in India.
Topband was not an early entrant to the air conditioner controller market in India, but with its best adaptable products and
customer service spirit to solve problems at any time, Topband ranks first among the latecomers in this land, and is well received
by customers.
Being acute and resourceful promotes the innovation of bidirectional inverter
In recent years, the market of bidirectional inverters has rapidly expanded from the field of battery formation and capacity
grading to portable and household energy storage. Topband team is keenly aware of the development trend of the product, and
thus concentrates on making technical breakthroughs in advance.
It is just a change in the application scenario, though, a great challenge is yet brought to the technology of bidirectional
inverter. For example: since the load differences in connection may affect product features and experience, the bidirectional
inverter applied in the field of small energy storage not only requires the optimization of software and hardware, but also brings
special limits to the EMC level, size, noise, efficiency and others. Low carbon, environmental protection, high power density and
strong security are the key points for R&D of products in this field.
In only 6 months, with continuous exploration and innovation, Topband team has overcome a number of technical challenges,
established the technology platform of bidirectional inverter, and developed 300 W-5,000 W series bidirectional inverters in
succession. Topband's products have not only passed the safety certification of international renowned institutions, but also,
through comprehensive domestic replacement to solve the delivery bottleneck, been praised by many customers.
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ESG & Social Responsibility Report of Topband Corporation 2022
In order to encourage product innovation and protect the Company's innovative achievements, Topband has developed a comprehensive
patent management and intellectual property protection system, aiming to effectively manage the patent assets and maximize the value of
intellectual properties with the goal of technology guidance, achievement protection and efficiency promotion. In order to continuously
improve the enthusiasm of employees to apply for patents, Topband awards the teams and innovative individuals with outstanding
intellectual property contributions at the annual general meeting of the Company every year. In 2022, a total of 552 employees were awarded
patent awards, with a total bonus of RMB 1,639,300.In addition, at the end of the year, the Company will also appraise the first, second and
third prizes of the annual patent efficiency according to the application of the patented technologies in products and the conversion gain, so
as to promote the industrial transformation of innovative achievements.
While promoting innovative R&D, Topband also attaches great importance to the protection of its intellectual properties. It actively
organizes the patent mining of new products and new technologies, applies for patent protection in time, and actively uses the intellectual
property to safeguard the legitimate rights and interests of the Company. As of December 2022, the total number of Topband's patent
applications was up to 2,946.Moreover, Topband fully respects the intellectual property as well. It regularly monitors the layout of patent
application and authorization in the industry, and investigates patent risks in time to avoid infringement and other risks after the product is
launched. Up to now, there has been no illegal behavior related to the intellectual property.
Topband will continue to use the core technologies of "four electrics and one network" to provide downstream customers with solutions,
and constantly expand the product and technology platform to meet customer demands, achieving a product- and technology-centered
development pattern. The Company's R&D efforts will focus more on originality and initiative innovation, improve the effectiveness of R&D
investment, expand the advantage of technology leadership, and co-innovate with customers and users to make innovation more valuable.
Patent-related data
2020 2021 2022
Patent for Utility Patent for Utility Year-on-year Patent for Utility Year-on-year
Appearance Appearance Appearance
invention model invention model growth invention model growth
Applications 270 300 52 218 315 53 -6% 188 325 68 -1%
Accumulative
648 895 140 866 1,210 193 35% 1,054 1,535 261 26%
patents applied
Authorizations 20 255 36 49 315 61 37% 87 402 68 31%
Accumulative
74 545 71 123 860 132 62% 210 1,262 200 50%
valid patents
Total of applications Total of accumulative Total of authorizations
Total of accumulative valid patents applied Accumulative foreign
patents Total of accumulative PCTs valid patents
applied
2020 2021 2022
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Intelligent manufacturing
Topband's products are mainly customized and order-driven, and the product manufacturing is characterized by "multiple categories,
small quantities, multiple centers and flexibility". Under the "digital, networked, intelligent" development wave of manufacturing industry,
Topband has created a unique Topband Intelligent Manufacturing System (TIMS).With "lean" as the basis, "automation" and "digitalization"
as the support, a Topband intelligent factory with "shortest delivery time, stable quality, optimal cost and flexible delivery" has been created
through three paths. As a global leader in the intelligent control industry, Topband will always adhere to the core value concept of "agile
innovation partner". It constantly transforms into an efficient, energy-saving and environmentally friendly "smart factory platform cluster",
hoping to join hands with global partners to create an intelligent and bright future. Under the guidance of the National 14th Five-Year
Intelligent Manufacturing Plan, with the Intelligent Manufacturing Capability Maturity Model of the Ministry of Industry and Information
Technology of the People's Republic of China as the standard for measuring construction level, Topband continues to improve the level of its
capacities, especially to reach the industry-leading level in storage and delivery, production operation, equipment and other capacity fields.
Intelligent manufacturing factory
Vision
Punctual delivery, stable quality, competitive cost
Automation Digitalization
Principal
Lean
axis
Manufacturing technology Digitalization and
Flexible production breakthrough transparency
Repeated action
Tedious action
Lean logistics
Digitalization
Lean kaizen
Lean design
Flow & value
automation
PSI & T+N
equipment
Driven level
Integrated
Industrial
production
Internet
Process
Paths
VSM
week
2.0
Soil SW, 5S, Kaizen, TPM, factory layout, visualization, localization, talent education
In order to adapt to the rapid change of downstream customer demands and iterative updating of products and technologies,
Topband upgrades the production management through lean culture construction, and builds comprehensive lean indicators for quality,
cost, delivery time, efficiency, etc. through proposal improvement, cost specialization, 7S, visualization and standardization. The
Company pays attention to training the quality of employees from top to bottom, introduces the lean concept into all links including
R&D, production, delivery and logistics, makes the most immediate response to customer demands with the best quality, the lowest
cost and the highest efficiency, calmly faces the multi-category and multi-business-line challenges, and achieves a flexible, punctual,
low-cost-waste and flexible lean production system.
Manufacturing center lean production system
Lean indicators Quality Cost Delivery time Efficiency Talent training
Efficiency Total
Business Driven level Continuous
management employee Automation
mainstay production improvement
and control involvement
system
Proposal Benchmark 7S Visualization Standardization
improvement line Cell line
Tools & modules Team
Cost TPM SMED VSM VSM
specialization construction
Lean culture Lean talent cultivation Lean benchmarking Lean publicity and
construction demonstration
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ESG & Social Responsibility Report of Topband Corporation 2022
The wholly-automatic production line leads the intelligent manufacturing upgrade of Topband
In October 2022, Topband Huizhou Factory successfully launched an automatic and information-based production
line. This production line innovates the traditional labor-intensive production pattern, ensures the consistency and
stability of product quality, provides customers with more agile delivery and more intelligent innovation process
support, and effectively improves the Company's overall strength and market competitiveness.
The automatic production line mainly automates and improves the whole process including plug-in section, plate
cleaning station, testing section and assembly section, and realizes automatic fixture handling, automatic plugging,
automatic plate sorting, automatic plate cleaning and other functions. With the application of the core technologies of
automation equipment, this production line has become one of production lines with the highest automatic production
level of PCBA products in Topband.
This is a significant progress of Topband from local automation to whole-line automation for products and
processes. In the future, Topband will continue to lead the industry, seize the opportunity of "intelligent
manufacturing", actively transform into "smart factory", and combined with the advantage of global factory layout,
constantly build the capability of "smart factory platform cluster", so as to improve production efficiency and product
quality, strengthen cooperation with customers, and realize sustainable development.
Five advantages of the wholly-automatic production line
Cost reduction and low-carbon and
Capacity improvement Workforce optimization Process tracing environmentally-
efficiency improvement Greatly improving the
Ensuring agile delivery Focusing on friendly
Benefiting the quality Adhering to the green
value-added services downstream industry concept
The UPPH (units per The personnel of The benefit from The monitoring and The introduction and
person per hour) of production line are direct reduction of tracing of the whole use of automatic
production line is optimized by labor cost of process of product production line
increased by 10+/shift, and a total production line is manufacturing can be greatly increase the
30%+.The capacity of over 30 personnel about 2 million+/year. achieved through the output per unit area,
and automation of the from day and night The product application of MES reduces the loss of
production line are shifts are optimized. manufacturing cost is system and various wastes and
greatly improved, the The labor allocation is reduced by reducing automation, so as to hazardous materials,
efficiency and quality optimized, and the the cost of rework eliminate artificial and demonstrates the
are steadily improved, manpower saved will loss caused by the error, increase the Company's
and the agile delivery enable more loss of accessories product first pass rate, low-carbon and
is ensured. value-added tasks to and quality and make the quality environmentally-frien
be performed in the fluctuation. more controllable and dly concept.
future. stable.
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Society
In order to accelerate the upgrade of intelligent manufacturing, Topband not only commits itself to promoting the digitalization of
products and solutions, but also continuously accelerates the digitalization of internal management and process. Based on the Company's
overall strategy of digital transformation, Topband's digital transformation aims to digitalize, automate and intelligentize its business, thereby
increasing the efficiency and reducing the cost, and providing customers with better service. Topband plans to build a digital platform to
connect various businesses and users, and enable intelligent decision-making and services through data awareness and interconnection. With
the help of artificial intelligence, big data, cloud computing and other technologies, this digital platform will automate and optimize the
business process, and provide deeper, more agile and more intelligent support for business development.
Data twinning
self-service analysis
Data lake Data governance → data storage → data asset → data mart
Supply chain Production Financial HR digitization
digitization digitization digitization HR strategic
Whole chain IT & OT integration Industry and finance management
Lean data driving integration digitalization
launching Talent development
Predictive protection Capital centralization
All on-line Quality control Comprehensive digitalization
Automation & Customer satisfaction budget Performance
intelligence enhancement Refined accounting management
Prediction & agility Quick copy of each Real-time visible digitalization
base indicator Automation & all
Low cost on-line
Risk control
Global network platform/Private cloud platform
In 2022, Topband focused on promoting the digitalization of data lake, production, supply chain and finance. By building a unified data
lake platform, the Company has unified data logic standards, and improved centralized management and application capabilities of data,
thereby laying a solid data foundation for digital decision-making. On this basis, Topband has built an end-to-end integrated supply chain
system, enabling predictability, agility and low cost in the supply chain; it has optimized the digital production system to further improve the
capacity of quality control and production efficiency; it has built and reconstructed the financial management platform to enhance the
efficiency and quality of decision-making.
The implementation of these digitalization works not only improves the management efficiency and decision-making capacity of the
Company, but also provides the data foundation and support for the intelligent manufacturing system of the Company. In the future, Topband
will continue to promote digital transformation, dig deep into the value of data, achieve comprehensive coverage of digital management, and
inject new power into improving product quality, raising production efficiency, reducing costs and achieving sustainable development.
Digital Production Information Board Whole Line SCADA/PAS/MES System
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ESG & Social Responsibility Report of Topband Corporation 2022
Quality product
Product quality is the foundation for an enterprise to exist and develop. For this purpose, the Quality Manual has been compiled as the
guiding principle for Topband's quality management, and also as the manager's solemn commitment to quality management. In the manual,
the requirements for products and services are specified, the management process and error correction mechanism are arranged, detailed
guidance is made for ways to carry out specific work, and the effective operation of current system is ensured through periodic management
review.
As for the inspection of product quality, the Control Procedure for Product Monitoring and Measurement has been compiled to monitor
and measure the quality of products and hazardous substances in the process of production. This procedure covers the inspection and test of
semi-finished products and finished products in the production workshop, the inspection and test of OQC finished products and other links,
so as to ensure that the records and identification of each link can be effectively managed.
In the R&D and production stages, Topband regularly updates the safety and environmental reports to meet customer requirements, and
carry out laboratory sampling of mass production products according to regulations to avoid non-conforming products flowing to the market
and customers. In order to ensure the safety of materials selected, Topband requires the raw material suppliers to provide the report of
passing the third-party hazardous substance test within one year. In order to ensure that the safety data statistics can be implemented, the
MSDS is collected for all related chemicals used in the Company's products.
In the project import stage, Topband will determine with customers the sales territory of products and the legal norms, environmental
protection directives and other requirements that products need to comply with, and strictly observe them in the process of R&D and
production. In the event of changes related to product manufacturing, the Company will promptly assess and record the risks related to the
health and safety of customers, and communicate with each parties in a timely manner by means of DCN (Designing Change Notice) and
ECN (Engineering Change Notice).For major changes related to accessories and equipment that may contain risks, the Company will assess
them through safety testing and small-scale production for trial, and will carry out large-scale production after they are qualified.
Topband will inform customers of potential health effects that may be associated with products and services through the product
specification or operation instruction.
Product and process Manufacturing Quality
development
SPC (statistical process MSA (measurement
TC system/IPD platform
control) system analysis)
APQP/PPAP
Equipment management 8D analysis process
system Supplier performance
Systems or tools MES (manufacturing management
execution system)
Solidify the R&D review Ensure accurate and
Prevent defects in
process to ensure R&D reliable quality data
production Continuously improve
quality
Ensure normal operation internal management,
Control risks in product production quality and
of key equipment
and process development customer service
Ensure first-in first-out of Unified and standardized
Control risks in product
supplier performance
Controls materials and tracing of
introduction and trial appraisal standards and
product information
production management mechanism
In 2022, the Company had no major quality or safety issues and passed relevant certifications, including ISO9001 quality management
system, IATF16949 automotive quality management system and QC080000 hazardous substance process management system. In view of
outstanding performance in quality, cost, delivery and other aspects, Topband was ranked first among all suppliers of "T Customer", a leading
global power tool enterprise, in 2022.
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Quality is the lifeline of products and one of the important prerequisites for intelligent life. Topband is promoting the establishment of a
"zero defect" quality system, adhering to continuous lean improvement in quality control, and providing the superior product quality for
customers through continuous lean management.
The Company has implemented a quality system with lean improvement in purchase, R&D design, trial production, mass production,
after-sales and other aspects, and established a professional laboratory to ensure a fast, flexible, efficient and collaborative R&D. The
Topband Center Laboratory, passed the accreditation of the national laboratory (CNAS accreditation), DEKRA CTF laboratory certification,
TUV Rheinland witness laboratory certification and UL-WTDP laboratory certification, provides the professional EMC test and solution
rectification, component certification test, product reliability test/life test, regulatory compliance test, hazardous substance test, failure
analysis, etc. for customers and partners. In addition to the center laboratory, various professional laboratories, including gas laboratory,
kitchen electric laboratory, engineering laboratory, battery laboratory, intelligent toilet laboratory, ice washing laboratory, electric laboratory,
etc., can conduct professional product test in accordance with UL, CE, VDE, TUV, GS and other certification requirements.
UL-WTDP Laboratory TUV Rheinland Witness CNAS Accredited DEKRACTF Laboratory TUV SD CTF
Laboratory Laboratory Laboratory
Customer service
Topband continuously conducts organizational evolution and adheres to customer-centered approach, forming a three-level customer
service organization consisting of foreground, middle office and background. The foreground, being flexible and efficient, quickly responds
to customer needs; the middle office, being professional and agile, provides a strong and sufficient resource support for the foreground; the
background aims to seek high and broad prospects, and ensure a long-term future-oriented support for the foreground and middle office.
Topband has formulated the Handling Procedure for Customer Quality Complaint, so that customers can file complaints through special
channels for issues arising from the use of products and services. After a customer complaint occurs, the salesmen categorize and transmit the
information to the relevant departments, and implement the handling mode of "responding to the customer within 4 h, taking temporary
measures within 1 working day, and submitting improvement reports within 3 working days".
For the issues to be improved, relevant departments will establish improvement teams in time; for major issues, expert teams will also
be invited to intervene. By taking measures such as temporary measures, cause analysis, corrective measures and preventive measures, a
complete 8D report is formed. They shall reply to the customer within the specified time and follow up to ensure that the case is closed and
not occur again. In addition, the Company will organize management and summary work and share cases to horizontally share experiences
with more colleagues, and ensure the widespread improvement of customer service capabilities throughout the Company.
According to the survey, the overall satisfaction score of the Company was 89.08 in 2022, showing that the overall satisfaction is high
and maintains an upward trend for four consecutive years. For key customers with decreased satisfaction, the Company conducts follow-up
communication, and analyzes and makes a targeted improvement plan.
S&OP process: connection of LTC, OTD and strategic purchase processes, and undertaking of
strategies and guide operations
Strategic planning Long-term strategic planning (1-5 years),
semi-annual
LTC process Strategic
Production marketing collaboration Medium term strategic planning purchase process
(January-December), monthly
Customer S&OP Supplier S&OP
collaboration Medium-term and short-term collaboration
process Master production schedule process
planning (3-8 weeks), weekly
Purchase and supply
Production and
manufacturing
Order delivery
Requirement
management
Material demand planning Short-term performance (1-3
weeks), daily
Production, purchase and Execution, daily
logistics execution
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ESG & Social Responsibility Report of Topband Corporation 2022
Secret of winning recognition from high-end customers
As a global professional brand of electrician's tools, H customer is particularly favored by the high-end market with
excellent quality. For high-quality products, H customer has extremely high requirements for suppliers.
In order to meet the ultra-high standards set by customers as soon as possible, the Topband team adopts a service strategy
with "rapid response, agility and efficiency": The problems found the day before can be significantly improved the next day;
even if they receive a customer email in the early morning, they will reply with a solution within ten minutes. For the work of
importing full-automatic glue pouring machines, the customer was not satisfied with the process at that time due to the special
selection. The Topband team was fearless of difficulties and worked hard. On the night the problem was found, they went to the
customer's hotel with a new validation plan for communication and confirmation. Afterwards, they worked overnight to improve
the process. The next day, they developed a new process, which greatly impressed the customer.
Such a serious attitude and agile and efficient action have won the recognition of H customer. In 2022, Topband became
the best supplier for H customer.
Stimulating Organizational Vitality ◥
Topband has always attached great importance to organization and construction and is committed to gathering a group of people with
aspirations, the sense of mission and internal drive to provide value to customers, and promote common struggle, shared value, common
development and exploring happy life. In the Company's 2030 vision plan, Topband explicitly proposes to promote organizational evolution
strategy, strengthen talent team building, quickly increase the number of key positions, strengthen the capacity building of the middle office
and background, better empower the "iron triangle" team, and create a customer-centered process-oriented organization.
Employment of employees and their rights and interests
Topband strictly complies with the Labor Law of the People's Republic of China, Labor Contract Law of the People's Republic of China
and other labor laws and regulations in the regions where its business is located. Forced labor, child labor and other illegal labor behaviors
are strictly prohibited, and various measures are taken to implement these regulations.
For child labor employment, Topband explicitly states its opposition to the use of child labor and has never employed child labor. The
Company has formulated the Prohibition of Child Labor and Remedial Guidelines, which clearly prohibits the recruitment of children who
fail to meet the age requirements as explicitly prohibited by various countries. In the Recruitment Management System and recruitment
process, it is clearly stated that "the use of child labor is absolutely prohibited, and any use of child labor is resolutely opposed. Do not
cooperate with any supplier who intentionally uses child labor". When recruiting, "effective methods must be taken to identify the true age of
employees, ensure that employees reach at least the legal age worldwide upon employment, and prevent the recruitment of child labor due to
false age documents provided by employees". At the same time, the Company has formulated the Child Labor Relief Procedures to take
remedial measures in the case of child labor incidents. For the forced labor, the Company has formulated the Forced Labor Management
Procedures, which clearly opposes forced labor and also specifies corresponding management methods to prevent the forced labor.
For prevention and avoiding of the use of child labor and forced labor, Topband has also taken various measures, including random
inspection of employee contracts, on-site interviews and confirmation, etc., and established reporting channels such as enterprise WeChat and
park mailbox, to understand and handle any possible violations in time. In addition, the Company also provides "orientation training" for
each new employee, and the average duration of each course related to human rights is 2 h, aiming to enhance employees' understanding and
knowing of issues such as child labor, slavery and human trafficking.
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Forced Labor Management Procedures (excerpt) issued by Topband
The Company has established a complaint and appeal mechanism. Anyone who discovers the forced labor, human
trafficking and other issues in the Company can report to the Company's human resources department for resolution
through effective methods such as telephone and letters, or directly report to the Company's general manager through
the Company's opinion box. The human resources department investigates and verifies the reports. In case of any
violations, immediate corrective actions shall be taken, and relevant responsible persons shall be followed up. If
necessary, preventive measures shall be taken and the effectiveness of relevant measures shall be evaluated.
Topband strictly complies with the relevant laws and regulations in the management of working conditions of employees, and adheres to
high standards and strict requirements. All working conditions need to be discussed and determined by the Company's senior executives. To
protect the rights and interests of employees, the Company has formulated the comprehensive and strict Employee Manual in accordance
with the law. Topband respects and protects the rights of workers to freedom of association and collective bargaining, and has formulated the
Management Procedures for the Freedom to Organize Trade Unions and the Right to Collective Bargaining that covers all employees, to
establish and maintain effective appeal and complaint procedures and ensure that Company's activities comply with local regulations and
social responsibility standards and maximize the protection of employee rights and interests. As of December 31, 2022, the Company has a
total of 8,379 employees. Topband respects and protects workers' rights to establish a harmonious labor relation.
In addition, to enhance the parental rights and interests of employees, Topband provides the parental leave (11 days) for employees in
accordance with local regulations. For example, in Shenzhen, the Company provides 178 days of maternity leave and 1 h/day of
breastfeeding leave for employees. The Company encourages male employees to actively participate in parenting, with 1,882 male
employees and 1,923 female employees entitled to parental leave.
Data related to parental leave
Unit Male Female
Total number of employees entitled to parental leave by gender Person 1,882 1,923
Total number of employees taking parental leave by gender Person 163 93
Total number of employees returning to work during the reporting period after Person 161 89
parental leave by gender
Return rate of employees on parental leave by gender % 96.41% 95.70%
11
Parental leave: The parental leave referred to here includes maternity leave and paternity leave.
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ESG & Social Responsibility Report of Topband Corporation 2022
Occupational safety and health
Topband attaches great importance to employee health and safety. It has established a sound institutional system, and has received
authoritative certification from multiple parties. At present, the Company has once again passed ISO45001 occupational health and safety
management system and other certifications, and has also passed SMETA, BSCI, WCA and other social responsibility certifications.
The Company established a work safety management committee (referred to as the "safety committee") in November 2022, and is
responsible for decision-making and daily management of safety work within the Company, including review and supervision of the
implementation of work safety regulations, systems and plans by the Company; establishment of annual goals and reward and punishment
mechanisms, and quarterly inspections and assessments; improvement of the safety standardization management system, organization of
accident investigation and handling, etc. The manager of administration department in charge of safety affairs serves as the chairman, and the
managers of each division serve as commissioners for the safety committee. A regular meeting is convened every quarter. Among all
employees in all locations of the Company, the proportion of employees represented by the safety committee is 100%.
Director of safety committee
Manager of administration
department
Supervisor of work safety
Administration supervisor
Microelectronics Microelectronics Electronic Control
Lithium battery division
Department Department Department
Manufacturing manager
Manufacturing manager Manufacturing manager Manufacturing manager
Organizational Structure of the Work Safety Management Committee of Topband
Topband manages the occupational health risks that employees may face in their work by four major means: evaluation of the current
situation of occupational hazards, occupational hazard factor detection of workplace, employee occupational health examination and daily
company work safety inspection. It has established an ISO45001 occupational health and safety management system with total employee
involvement throughout the Company, and regularly conducts internal and external audits of the system every year to ensure its normal
operation. For the occupational health hazard sources identified according to the system requirements, the Company clearly requires all
departments to take specific measures to continuously strengthen the construction of occupational safety and health system.
The health and safety policies developed by Topband also cover the work and activities of various suppliers and subcontractors in the
Company. According to the Management System for Safety of Outsourcing Projects and Control Procedures for Outsourcing Service
Provider, the safety director is responsible for the safety training of the outsourcing provider and keeps training records in the Company; the
personnel of the other party must comply with the Company's health and safety policies after entering the scope of Topband. Before the
operation, Topband will conduct safety training for its operators, informing the relevant requirements, precautions during the operation and
handling process for any abnormal situations of the Company. Corresponding supervision mechanisms have also been established during the
work to ensure failure to violate the Company's health and safety policies.
For occupational safety and health risks, the Company has established a reporting mechanism, so that all employees can report relevant
issues in the Company's production and operating activities through anonymous submission of report letters. To ensure that employees and
suppliers exercise their reporting rights in accordance with the law and safeguard their legitimate rights and interests, the Company has
formulated the Employee Complaint Handling Process and Regulations on the Protection of Whistleblowers, and strictly protects the
information of whistleblowers in accordance with audit regulations.
The above occupational safety and health protection measures have significant results. In 2022, there were no work-related accidents or
deaths of employees due to work-related health issues at Topband. The rates of employee lost time injury and serious employee lost time
injury were both 0.In the future, the Company will continuously strengthen the implementation of various occupational health and safety
management measures, and increase incentives and combination of rewards and punishments, to promote the continuous improvement of
health and safety work.
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All-round guarantee of employee health and safety by Topband
Topband has formulated the Occupational Health Management System of Workplace, which is applicable to the
prevention and control management of occupational health in toxic and harmful workplaces such as production and
storage of the Company.
According to the Occupational Health Management System of Workplace, the Company provides free
occupational health physical examination, which covers all employees who have been on duty for one year (once a year).
Employees in key special posts who are exposed to occupational health hazard sources must participate in the physical
examination. In 2022, the proportion of physical examinations for principal employees reached 80%, and the proportion
of physical examinations for employees with key special posts was 100%.
Do not arrange the personnel who have not undergone occupational health examinations to engage in occupational
disease inductive operations and those with occupational contraindications to engage in contraindicated works.
Conduct occupational hazard factor test on places involving occupational hazards once a year. The test area refers
to the occupational hazard area throughout the Company. The employee health and safety risk assessment made by the
Company covers all workplaces.
The Company tests the direct drinking water, to ensure that it complies with drinking water standards.
The Company has formulated the Purchase, Distribution and Use System for Labor Protection Necessities, and
provides corresponding labor protection necessities for employees in posts with occupational hazard factors based on the
annual testing results of occupational hazard. In addition, for employees engaged in work in confined space, work at
heights, and heavy physical work, the Company has formulated the Guidelines for Work in Confined Space, the Safety
Management System for Working at Heights, and the Administrative Measures for Protection of Heavy Physical Work.
For special posts where long-term operations such as high-temperature and aging, gluing, painting, washing (auxiliary),
hazardous materials, and chemical warehouse keepers are harmful to employees' physical health, mandatory job changes
are required after continuously working for 3 months.
If new equipment, processes, and materials are adopted, the Company will conduct a new occupational hazard
assessment, to assess whether they meet the relevant occupational health requirements.
The Company has formulated Management System of Electrical Safety, Protection System of Machinery and
Electricity Safety, Management System of Fire, Explosion, Gas and Dust Prevention in Work Safety, and Management
System of Hazardous Chemicals, and prepared emergency response plans for hazardous chemicals leakage, and conducts
regular drills every year. In 2022, no chemical leakage accidents, food safety accidents, fire and explosion accidents
occurred in the Company.
The Regular Maintenance System for Equipment and Facilities has been formulated, and all equipment shall be
inspected daily before using. For large and critical equipment, the Company has developed an annual maintenance plan.
The Company promptly rectifies safety hazards. In 2022, a total of 537 safety hazards were identified and
rectified, with accident hazard rectification rate of 100%.
The Control Procedure for Contingency Reserve and Response, Control Procedure for Hazard Source
Identification and Risk Assessment, Management System for Accident Statistics and Report Handling, and Industrial
Accident Handling Process have been formulated, to provide guidance for the investigation of occupational health and
safety incidents. Once an incident occurs, the emergency plan will be initiated in accordance with the emergency plan of
work safety. After the on-site disposal, the Company's administration department will carry out the investigation and
handling of the accident, including detecting the cause of the accident, clarifying rectification measures and personnel in
charge, rectification implementation plan, etc.
All employees must participate in and pass the "orientation training in safety" before they take up their posts. The
training content includes laws and regulations and relevant safety knowledge, safety signs, electrical safety, industrial
injury and occupational disease prevention, fire safety, chemical safety, anti-fraud publicity, first aid knowledge, etc. In
addition, the Company regularly carries out training on occupational safety and health every year. In 2022, all new
employees participated in the three-level safety training, and the achievement rate of safety education for new employees
was 100%.
The Company has a psychological counseling room, to provide free psychological counseling for employees.
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ESG & Social Responsibility Report of Topband Corporation 2022
Employee development and diversity
Topband adheres to the corporate spirit of "flying goose spirit - looking at the world and flying together" and the employment
philosophy of "respect, inclusiveness, openness, equality, competition, and prioritizing", and adheres to common development and customer
satisfaction.
Topband human resources management concept Topband employment philosophy
Provide opportunities for insiders: Employ people who agree with the Company's
Give priority to internal promotion, values,
organize change to generate new growth attach importance to people's growth potential;
opportunities; Boldly employ "the young" (in age and
Qualification and performance management thinking/psychology (learning ability));
promotion: Pay more attention to ability than to working age;
Qualification promotes ability improvement, explore people's true value needs,
performance appraisal promotes goal attainment; provide platforms and opportunities;
Value co-creating and sharing: Value professional talents and be able to
Achieve a win-win situation for both the Company accommodate individuals with different personalities
and individuals. and abilities that are stronger than you.
Topband adheres to the core values of "respect and inclusiveness", and is committed to opposing discrimination and harassment,
promoting diversity, and creating a healthy cultural environment. The Anti-discrimination Management Procedure of Topband reflects the
Company's emphasis on diversity and also ensures that employees are free from any form of discrimination in their work. The Company has
formulated the Anti-discrimination Management Procedure to ensure that the Company shall not discriminate against any employee in
employment behaviors such as job hunting, promotion, commendation, training, job assignment, salary, welfare, punishment and termination
of employment relationship because of the employee's ethnic group, skin color, age, gender, sexual orientation, race, disability, religion,
political status, membership, nationality, marital status and gender identity. All employees shall be free from any form of discrimination in all
kinds of employment behaviors. Through employee training and clear regulations, the Company makes employees understand and realize the
importance of diversity and anti-discrimination, and promotes the harmonious and stable development within the Company. In addition,
Topband also carries out diversified local employee activities according to local conditions, to promote the transmission of diversified ideas
and create an inclusive and open working atmosphere. These measures not only comply with local regulations and social responsibility
standards, but also help the Company attract and retain excellent employees, improve the Company's reputation and brand image.
To ensure the full implementation of the policies, the Company has established a complaint and appeal mechanism. If any internal or
external personnel find discriminatory act in the Company, they can report it to the Company's human resources department for resolution, or
feed back it to the Company's general manager through the Company's opinion box. The human resources department makes investigation
and verification for the reports. If there are any violations, immediate corrective actions shall be taken, preventive measures shall be taken if
necessary, and the effectiveness of relevant measures shall be evaluated.
In 2022, employees from ethnic minorities, minority groups, and vulnerable groups (for example, people with disabilities) accounted for
14.04% of the total number of employees, and female employees accounted for 42.27% of the total number of the Company's employees.
Topband attaches great importance to supporting minority and vulnerable groups, and has specially formulated corresponding female
employee protection systems.
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The First Football League of "Topband Cup in Vietnam"
On September 11, 2022, the First Football League of "Topband Cup in Vietnam" opened at Topband Smart Dong Nai
(Vietnam) Co., Ltd. The contest lasted for over a month, with a total of 24 teams involved, including 17 men's teams in 4 groups
and 7 women's teams in 2 groups. In a total of 49 matches, with love for football and superb skills, the players showed beautiful
goals time after time, which contributed wonderful football matches and brought rich and exciting visual experience to the
audience.
The contest fully presents the sports spirit of passion, nobility, honesty, and fair competition, as well as the players' spirit of
striving hard, unity, and dedication. The contest has also created a healthy and beneficial sports space in Topband (Vietnam),
allowing employees who love football to learn and communicate, and strengthening the communication and connection between
employees in Topband (Vietnam).
Topband's Regulations on the Protection and Management of Female and Underage Employees (excerpt)
All female employees of the Company enjoy the same rights as male employees, and have the right to propose
opinions and suggestions to the division, audit department, and the Company's leaders through various channels and
forms.
Female employees participate in the Company's management as the male employees, and have the same
opportunities and rights as male employees in terms of job promotion, training, remuneration, welfare, etc.
Except for the special requirements of the post, all female employees can get into work.
The factory shall not reduce the remuneration or terminate the labor contract of female employees due to
pregnancy, childbirth and lactation.
During pregnancy of female employees, all departments shall not arrange for them to perform the work forbidden
during pregnancy. For those no longer competent for their original jobs, departments shall reduce the workload or arrange
other posts according to the certificate of hospital.
For employees pregnant for more than seven months, all departments shall not arrange for them to be on the night
shift or extend their working hours beyond normal working days, but shall arrange for them to have a rest for 1 h every
day and the time for antenatal care during pregnancy (included in the working hours). If they are standing at work, stools
for rest shall be offered.
During lactation of female employees, all departments shall not arrange for them to perform the work forbidden
during lactation, extend their working hours, or arrange for them to be on the night shift.
Female employees during lactation have two lactation periods for 30 min each time during each shift.
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ESG & Social Responsibility Report of Topband Corporation 2022
In order to better motivate employees' development, Topband has established a perfect short-term and long-term incentive system. The
Company is trying out a broadband remuneration system based on job qualifications, and the salary and growth of employees are closely
related to their ability level. For different types of personnel, the Company has also formulated a performance incentive system matching its
core value creation, covering all employees. For example, the performance of the general manager of a business unit is linked to the net
profit growth of the business unit in the charge of him/her; the performance of salesmen is related to the income generated, the growth of
gross profit margin and the ability of business management; the performance bonus of supply chain, manufacturing and quality personnel
mainly comes from cost reduction, etc. With respect to long-term incentives, the Company has implemented the equity incentive plan
regularly (every three years), and each plan is divided into three years for exercising or unlocking, so as to promote the consistency between
rights and interests of employees and interests of the Company. In 2018, the Company granted 42,887,000 stock options to 684 incentive
objects, which has been implemented; in 2021, the Company granted 33,951,000 restricted stocks to 1,246 eligible incentive objects, which
is being implemented.
In addition, Topband has also established a perfect career development channel and promotion management mechanism, and formulated
Qualification Management System, Management Measures for Posts, Professional Titles and Ability Level System and other management
measures. Since 2020, the Company has implemented a new qualification system. At present, it has covered nearly 2,000 employees in 50
posts, and continuously carried out qualification certification for eligible employees, thus providing employees with a clear career
development direction and opportunities to realize shortcomings. Topband has also launched the IDP (Individual Development Plan) project,
to customize individual development and career development planning for core key talents and make monthly/quarterly reviews. In addition,
the Company has arranged lectures and consultations on employee career development planning, to further assist employees to better carry
out career development planning.
Topband has laid emphasis on promoting internal transfer and supporting the all-round development of employees. In the post
qualification model, the Company has clarified the corresponding career development channels: "where does the post come from", "which
posts can be developed from the post", and "how to develop across posts", so as to encourage employees to constantly improve themselves,
and develop to more advanced, systematic, valuable and suitable posts. Every year, the Company makes an inventory of employees and
cadres in all functional departments, and makes personnel adjustment and rotation according to personal ability and potential; the department
will also make rotation arrangements according to characteristics and development will of employees, so as to improve work enthusiasm and
initiative of employees, promote internal transfer and benign competition, and achieve a win-win situation between employees and
enterprises.
The Company also makes the most of the learning and development needs of employees, and has launched a comprehensive and
effective training system. Topband has formulated various systems such as External Training Management System, Management Measures
for Internal Part-time Trainer, Tutor Management System and Policy on the Company's Encouragement in English Ability Improvement, and
made relevant provisions on the management methods of participation of employees in external training and the Company's internal training
of lecturers. As for training programs, the Company not only provides employees with training on skills involving sales, purchase, etc., but
also provides training on non-skill aspects such as safety, corporate culture, human rights policy and psychological health, and also creates
education promotion training programs for employees in need. For internal training, employees can flexibly choose training methods: offline,
online and others. The Company hopes that every employee can get high-quality learning suitable for them through the most effective
learning portfolio. In 2022, all employees received vocational or skill-related training.
Topband "Lecturer's Day" activity
At the end of August 2022, as the Teacher's Day approaches, Topband launched
the "Lecturer's Day" activity once a year. The activity aims to motivate the internal
training lecturer team, strengthen the sense of honor of the lecturer team and assist in
the construction of the lecturer team. The activity selected two awards: "Best
Lecturer" and "Best Popular Lecturer": The "Best Lecturer" was selected by the
human resources center according to indicators such as student satisfaction, teaching
hours and development hours; the "Best Popular Lecturer" was selected in the form
of online voting in WeChat official account.
After selection results were announced, the Company awarded gifts to
outstanding lecturers, made an exclusive interview with outstanding lecturers, and
issued a "Golden Words of Lecturers" in WeChat official account, conveying the
excellent images of lecturers to the inside and outside of the enterprise.
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Society
The Company mainly The training, including R&D Special Skill Training, HRBP Training Camp, Sourcing Training Camp,
provides corresponding Buyer Training Camp, Internal Trainer Training Camp, Tutor Training Camp, AR\SR Ability
skill training for Improvement Training Camp, English Improvement Training Camp, Communication Training Camp
professional post and Newbie Training Camp, has covered 1,600 persons-time, with the course duration of about 260 h.
personnel.
Management skill Conduct 10 sessions of management skill improvement training camp for about 480 h.
training
Skill training conducted Conduct nearly 1,000 sessions for about 2,000 h.
within various
departments
Employee skill training Include employee orientation training, rookie training, on-the-job training, job transfer training and
special post skill training, with average training hours of employees of 20 h.
Training-related data
Employee training persons-time Person-time The annual total training person-time is more than 20,000 persons-time.
Employee training investment amount RMB The total investment is about RMB 2 million.
Total employee training hours h About 160,000 h (including all training)
Average employee training hours h/employee Average 15 h/person/year
Average training time for employees of h/employee The average training time for female employees is about 10 h/person.
different genders and categories The average training time for male employees is about 18 h/person;
The average training time for professionals is about 8 h/person/year; the
average training time for management personnel is about 6 h/person/year.
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ESG & Social Responsibility Report of Topband Corporation 2022
Employee care and communication
Topband has made five major plans: "'Topband' Ease Plan", "'Topband' Growth Plan", "'Topband' Happiness Plan", "'Topband' Love
Plan" and "'Topband' Housing Plan", to provide care for employees from all aspects of physical and psychological growth. The welfare
system covers all scenarios, and reduces the worries of employees.
Holiday
Retirement
Statutory holidays/holiday gifts/birthday gifts
Endowment insurance/memorial gifts
Entry
Entry gift/exclusive shuttle bus/training and
learning/Shenzhen household
registration/cultural shirt/free
accommodation/fair-price canteen
Married
Marriage leave
Activity
League construction/association
activities/galas
All scenarios
Employee welfare
system
Relaxing Charging
Dining room/tea room/gym/dance Internal training/external
studio/cultural and sports association/annual training/EAP psychological
vacation/tourism vacation/tourism allowance counseling
Insurance
Unemployment insurance/work injury insurance
Accident
Bereavement leave/EAP
Expecting a baby
Maternity leave/paternity leave/maternity
insurance/children's amusement park Illness
Medical insurance/physical
examination/paid sick
leave/charity fund
Housing
Housing fund/talent public rental housing
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Social insurance and housing fund: endowment insurance, medical insurance, maternity insurance,
employment injury insurance, unemployment insurance, and housing fund.
Statutory holidays: annual leave, marriage leave, maternity leave/paternity leave, sick leave, funeral
leave, etc.
Supplementary leave: paid travel leave.
"Topband" Ease Plan Daily welfare: free shuttle, free dormitory, cheap canteen, welfare shop, afternoon tea, birthday cards
and holiday gifts.
Overseas benefits: overseas subsidies, home leave, personal accident insurance and family visit
subsidies.
Internal training: According to different stages of people career, work out different training plans and
management modules, including rookie management (newbie and social recruit), professional skill
training (R&D, sales, supply chain…), cadre management (newcomer, struggler and leader), etc.
External learning: For those in need of external training, all or part of the training expenses can be
reimbursed.
"Topband" Growth Plan Scholarship for education promotion: Encourage internal personnel in continuous education
promotion, and give scholarships to those realize education promotion.
Internal teaching reward: Create a complete internal training course system and an excellent lecturer
team, and give corresponding rewards to lecturers engaged in development and teaching of courses.
Talent recommendation reward: Encourage on-the-job employees and external personnel to
introduce all kinds of talents to the Company, and reward them upon recommendation.
Interest associations: At present, all bases have more than 20 interest associations. Rich activities can
be implemented for relax. Employee activities: Monthly organize colorful cultural activities,
including fun sports game, fitness and weight loss activities, skill competition, sports carnival,
summer parent-child summer camp, singer contest, e-sports competition, engineer's day, New Year
party, etc.
Festival activities: including guessing lantern riddles at the Lantern Festival, making zongzi at the
"Topband" Happiness Plan Dragon Boat Festival, garden party at the Mid-Autumn Festival, annual meeting at the Spring
Festival, etc.
Annual tourism/group construction: Tourism funds and group construction funds are provided.
Recreational facilities: Free gym, dance room and children's amusement park are provided for
employees, and activity venues such as basketball court, badminton court, ping pong room and
billiard room are available.
Periodic physical examination: Annually organize all employees to take physical examination, to
assist employees to better manage their physical health. Psychological care for EAP employees:
Full-time psychological counselors are assigned, to provide free psychological counseling services
for formal employees and their immediate family (parents, children and spouses), thus promoting
"Topband" Love Plan physical and psychological health and improve happiness.
Employee experience care: An employee experience platform is set up, so that employees can put
forward suggestions and ideas, and explore new demand for improvement of software and hardware.
Love fund: When employees or their immediate family encounter serious diseases, accidents,
emergencies, etc., they can apply for the Company's love fund, to help over the difficulties.
Talent public rental housing: Shenzhen talent public rental housing can be provided for internal
employees.
"Topband" Housing Plan Household registration transfer: Shenzhen headquarters can provide household registration transfer
and affiliation services for those who meet the requirements of transfer to Shenzhen household
registration.
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ESG & Social Responsibility Report of Topband Corporation 2022
Topband has established a rich system of cultural activities, which comprehensively covers five types of activities: cultural management,
incentive ceremony, employer brand, recreation and sports, and holiday welfare. In 2022, diversified special welfare activities were
throughout the whole year.
Cultural activity system
Cultural management Incentive ceremony Employer brand Recreation and sports Holiday welfare
activities activities activities activities activities
Engineer's day New Year party 518 live recruitment Fun sports game Lantern Festival activities
Employee skill Year-end summary activities Sports carnival Women's Day and
competition meeting 818 internal Weight loss flag Mother's Day
Work safety knowledge Annual meeting of the recommendation festival Singer contest Dragon Boat Festival and
Chinese Valentine's Day
contest division activities E-sports competition
Teacher's Day and
Cost optimization activities Star line selection Family day/parent-child EAP psychological
Mid-Autumn Festival
Trade secret protection TOP culture selection summer camp garden party National Day and All
month activities Short video creation Saints' Day
Exhibition hall explanation competition New Year's Day and
competition Spring Festival
Playful and Cheerful Tour, Meeting "Sunny" Days
On August 23, 2022, Topband's first summer parent-child
summer camp for 3 weeks came to a successful conclusion. The
summer camp has set up colorful courses for children, including
knowledge courses, special classes for children's safety education,
DIY fun activities, etc.
The activity of family open day of "Playful and Cheerful Tour,
Meeting 'Sunny' Days" is also one of the special activities in the
summer camp, which aims to provide employees with the
opportunity to enjoy weekend leisure time with their children and
make them experience their parents' working environment.
Interesting parent-child interactive games and other activities
strengthen the communication between parents and children,
strengthen their feelings, and make children fully experience the fun
brought by learning and games.
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Society
Topband lays emphasis on effective communication and dialogue with employees, to protect rights and interests of employees. The
Company actively takes employee dialogue measures, and establishes a dialogue mechanism represented by Yanxingzhe, "employee
experience platform" and "employee communication meeting". In order to understand attitudes of employees towards the Company's related
measures, the Company conducted an annual employee satisfaction survey through Q20 questionnaire. The Company notifies employees and
their representatives at least 1 week in advance before implementing major operational changes that may have a significant impact on the
Company and employees.
Yanxingzhe "Employee communication meeting"
It is a platform founded in December 2005 that Topband Every quarter, the Company's administration department
passes on information, spreads ideas, shows the elegance of organizes an employee communication meeting, and each
employees and express personal feelings. Adhering to the aim of department assigns representatives for attending. At the
"openness, truthfulness, boldness and incisiveness", Yanxingzhe communication meeting, representatives can feed back the
has become a spiritual reading for Topband people, which come questions daily raised by employees in departments, and the
down in one continuous line as corporate culture and shows the administrative team answer them on the spot, or agree on solutions
wisdom and charm of the employees. Yanxingzhe calls for works for problems to be rectified. In 2022, the Company held 2 employee
of all employees of the Company, including news reports, communication meetings, and solved 29 problems fed back by
interviews, documentaries, professional sharing, personal style, employees.
essays, travel notes, art, etc., with unlimited theme and genre,
encouraging employees in free creation and inspiration.
Employee communication meeting
"Employee experience platform" Q20 employee satisfaction survey
The platform relies on enterprise WeChat of office platform, In the Third Quarter of 2022, the Company carried out an
and all employees can express their suggestions and opinions on annual survey of organizational atmosphere, covering all the
the Company's physical environment, technical environment, branches and subsidiaries of the group company (excluding
culture and other aspects at any time by scanning QR codes, research and control), and improved the organizational atmosphere
leaving messages and other means. After receiving the proposal, by understanding and analyzing employee engagement. The survey
the administrator of the platform will follow up the proposal and focused on 5 aspects: primary need, evaluation and encouragement,
contact the person in charge of the problem to handle or explain teamwork, career development and collective honor, and concluded
the proposal. Every two weeks, the administrator will publish the suggestions for improvement of the organizational atmosphere
reply to the questions received by the platform. In 2022, the through horizontal and vertical comparison.
platform received more than 600 employee proposals.
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ESG & Social Responsibility Report of Topband Corporation 2022
Building a Sustainable Supply Chain
Topband attaches importance to supply chain safety, and establishes a sustainable and responsible supply chain system, to ensure
product quality and reliability. The supply chain management standards implemented by the Company include the standards for assessment
and selection, management and tracking, continuous improvement, etc. of suppliers. A comprehensive supplier management system is
established, to ensure suppliers comply with the Company's ethical and legal standards.
To build a responsible and sustainable supply chain, the Company has formulated a sustainable purchase policy based on the Agreement
on Environment and Occupational Health and Safety of Interested Parties, ETI Basic Guidelines and TB-CSR-2019 Code of Conduct. When
new suppliers are introduced, the Company will review whether suppliers are in compliance based on this framework. In addition, in order to
ensure the diversity, equality and inclusiveness of suppliers and supply chains, the Company has implemented the Regulations on the
Protection and Management of Female and Underage Employees, to protect their legitimate rights and interests as well as health in
productive labor; in order to effectively prevent materials, parts, components and products containing harmful substances from being
incorporated or used, the Company has implemented the AD-TB-RD-21B Standards for Management of Hazardous Substances in Products
of Topband Products, and put forward the requirements for the control of hazardous substances for suppliers and internal teams of the
Company, so as to assist all parties to understand and clarify the clear standards of hazardous substances in environmental laws, regulations
and markets, ensure that all links comply with laws, regulations and customer requirements, and reduce the impact of hazardous substances
on human health and the environment.
On this basis, Topband has implemented the TB-TQP-10P Control Procedure for Supplier Management to ensure that the supplier
qualification meets the Company's requirements, implements strict access approval, and selects suppliers that meet the Company's
sustainable development requirements; continuously monitors the products and services provided by suppliers, and ensures that they meet the
requirements of Topband.
Every year, the Company carries out monthly performance appraisal and annual audit on suppliers of product assembly, parts and raw
materials, and implements the punishment mechanism to ensure the compliance of suppliers. Topband has set up a supplier review team
composed of departments of purchase, R&D/engineering, SQE/quality and supply chain, and carried out an all-round assessment of suppliers
through corporate social responsibility risk analysis, questionnaire, on-site audit, etc., so as to effectively prevent and correct the problems
identified.
At the same time, in order to strengthen the sense of responsibility in the supply chain environment and society, the enterprise has
arranged relevant training for purchase personnel, and incorporated the sustainable purchase objectives into the performance appraisal of
purchase personnel, and controlled them through the sustainable purchase assessment form, to promote the all-round implementation of
sustainable supply chain management.
Topband also actively participates in supply chain risk management, makes use of risk assessment and early warning mechanism to
timely discover and respond to potential risks (natural disasters, policy changes and other uncertain factors), and ensure the stable operation
of the supply chain. In addition, the Company also focuses on training suppliers, empowering suppliers, improving their knowledge and
awareness of sustainable development and environmental protection, and promoting the sustainable development of global supply chains.
By establishing scientific and rigorous supply chain standards and risk management mechanism, Topband continuously strengthens its
core competitiveness in supply chain security, thus providing customers with more reliable products and services.
On-site Audit of Suppliers Summary on Final Meeting of Suppliers
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Society
Controlling the conflict mineral issues through multiple systems
Conflict mineral is an important issue in sustainable supply chain management. The Company recognizes the risks of
mining, trading, transporting and exporting minerals in high-risk areas mentioned in the OECD Guide to Responsible Supply
Chain Due Diligence for Mineral from Conflict-affected and High-risk Areas (OECD Annex II Model Supply Chain Policy),
and is committed to observing laws and ethics in all business practices, upholding a responsible attitude during purchase, and
ensuring that metals from conflict-affected and high-risk areas are not used or included in products and packages.
Adhering to the principle of respecting human rights and not contributing to conflict business, Topband has formulated a
model policy of global responsible supply chain for minerals in conflict-affected and high-risk areas, and made a series of
commitments including "not tolerating serious infringement acts related to mineral mining, transportation or trade".
To effectively identify and trace the source of raw materials, Topband has signed the Commitment of Not Using Conflict
Minerals with suppliers, and required downstream enterprises to make detailed risk analysis of conflict minerals and suppliers
to fill out Conflict Mineral Report Template (CMRT), etc.
To ensure the effective implementation of the policy, in the case that suppliers repeatedly fail to respond to the conflict
mineral issues, the Company will initiate the procedure of disassociation. At the same time, the Company has set up an
Employee Complaint Handling Process for conflict mineral issues, so as to record and feed back related issues.
Participating in social activities for public good ◥
School-enterprise cooperation
Topband has actively made school-enterprise cooperation for many years, paying attention to social responsibility and educational
development. In 2021, Topband and Huizhou University started the school-enterprise cooperation strategy, and established a teaching
practice base in Huizhou University, to promote the cultivation of compound talents suitable for social development. Topband also
established special scholarships, and sponsored academic competitions and cultural and sports activities for teachers and students, to guide
students to grow up and become a talent. In 2022, Topband continuously promoted the deepening of school-enterprise cooperation. In
December 2022, the Company awarded scholarships totaling RMB 100,000 to outstanding students in most colleges of Harbin Institute of
Technology through "Harbin Institute of Technology (Shenzhen) - Shenzhen Topband Intelligent Technology Scholarship". In November
2022, Huizhou Topband Party branch and the Party general branch committee of School of Electronic Information and Electrical Engineering
of Huizhou University held a signing ceremony for party building under cooperation to promote development through party building.
Signing Ceremony for Party Building Under Cooperation on November 14, 2022
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ESG & Social Responsibility Report of Topband Corporation 2022
Public welfare activities
In 2022, taking Topband as the center, Topband worked together with its volunteers and community workers to carry out
various social welfare activities in the surrounding communities and built good community relationships with the local
communities. In 2022, the Company's party committee and volunteer association held more than 50 activities, covering condolence
for special children, poverty alleviation and agricultural assistance, care for the elderly in nursing homes, etc., and fulfilled the
spiritual purpose of "gratitude, dedication, mutual assistance and progress".
In June 2022, the Company donated RMB 10,000 to Zhongkai Branch of Huizhou District Charity Federation. In terms of
social care and rural revitalization, Topband has carried out a series of social welfare care activities, such as care for families of
special children, condolence to people in difficulties, assistance for farmers with unsalable melons, and free delivery of medicines.
In April 2022, the Company donated RMB 10,000 to Shenzhen Courageous Deed Foundation, to support the cause of courageous
deeds. These activities have brought warmth to the surrounding communities, and also made positive contributions to rural
revitalization and social and public welfare undertakings.
In 2023, Topband will continuously further carry out more public welfare care and rural assistance activities, and continuously
practice corporate social responsibility on the road of social care and rural revitalization.
Activities of Company and Condolence to Mentally Handicapped Children on November 12, 2022
Activities of Company and Condolence to Mentally Handicapped Children on Participation in the Charity Sale for
November 12, 2022 Care for the Mentally Handicapped on
August 6, 2022
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Governance
Governance
Governance
Perfect corporate governance is the "anchor" for enterprise operation and
development. Since listing, Topband has continuously strengthened corporate
governance, legally established a perfect governance structure and governance
system of the Board of Directors, and protected shareholders' rights and interests
through various ways. In addition, Topband has also continuously strengthened the
construction of compliance management system, risk management system and
information security protection mechanism, to avoid and prevent operation risks and
ensure the steady development of enterprises.
Decent work and Peace, justice
economic growth and strong
institutions
58
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ESG & Social Responsibility Report of Topband Corporation 2022
Strengthening Corporate Governance
Governance structure
The General Meeting of
Shareholders
The Board of Supervisors
Strategy committee
Nomination committee:
Secretary of the Board of
The Board of Directors
Directors
Salary and Assessment
Committee
Audit Committee
General Manager
A perfect corporate governance structure can effectively protect the equal and legitimate rights and interests of all stakeholders.
Combined with the enterprise development, Topband has established a governance structure including the General Meeting of Shareholders,
the Board of Directors, the Board of Supervisors and the management in accordance with the requirements of the Company Law, the
Securities Law, the Code of Corporate Governance for Listed Companies and the Rules Governing the Listing of Shares on Shenzhen Stock
Exchange, and exercised the decision-making power, executive power, supervision power and business responsibilities respectively, so as to
ensure the efficient operation of the Company with a multi-level governance system with clear powers and responsibilities.
The General Meeting of Shareholders is the highest authority of the Company. The general meeting of shareholders strictly follows the
relevant laws and regulations and the Articles of Association to perform the convening and deliberation procedures, and exercise voting
rights on major issues such as the Company's external investment, financing, profit distribution, and equity incentive.
The Board of Directors is the decision-making body of the Company, which is responsible to the General Meeting of Shareholders. It
consists of four special committees: audit committee, remuneration and appraisal committee, nomination committee and strategy committee,
and has formulated work procedures, to standardize the operation of those special committees. Members of those special committees shall
completely consist of directors, which are responsible to the Board of Directors and perform their duties according to relevant articles of
association and authorization of the Board of Directors. In the audit committee, nomination committee, and remuneration and appraisal
committee, independent directors shall constitute a majority, and take the position of convener. The convener of audit committee shall be
professional.
The Board of Supervisors is the Company's supervisory body, which is responsible to the Company's General Meeting of Shareholders,
supervises the legal compliance of the Company's major issues, financial position and the performance of directors and senior executives,
and promotes the Company's standardized operation. During the reporting period, the Board of Supervisors, in accordance with the
requirements of relevant laws and regulations and in the spirit of being responsible to investors, has conscientiously performed its duties,
supervised and inspected the performance by the Board of Directors, directors, the management and other senior executives of the Company,
supervised the Company's production and operation, financial position and major issues, and expressed the opinions of the Board of
Supervisors.
All the time, Topband has been committed to making the Company's development strategy closer to the market and better implemented
the strategy in operating management. In 2022, the Company has held 4 General Meetings of Shareholders, 12 Meetings of Board of
Directors, 12 Meetings of Board of Supervisors, 4 meetings of audit committee, and 2 meetings of remuneration and appraisal committee, so
as to ensure the Company's major decisions are legal, compliant, feasible and effective.
In terms of prevention and reduction of conflicts of interest, the Company has formulated a series of targeted management mechanisms,
to comprehensively reduce the risks of various conflicts of interest through clear responsibilities and transparent rights and interests.
59
Governance
Clear responsibilities Transparent rights and interests
Responsibilities of senior executives: Upon Responsibilities of shareholders and prevention of
deliberation by the Board of Directors and the General conflicts of interest: Strictly observe the articles of
Meeting of Shareholders, senior executives and association, the relevant proceedings of the General
responsibilities are clearly defined in the Articles of Meeting of Shareholders and the Board of Directors,
Association, and Non-compete Agreement is signed.
and follow the principle of equality of shareholders.
Responsibilities of controlling shareholders: The
Open and transparent information disclosure system.
basic obligations of controlling shareholders are clearly
defined in the articles of association, such as increase or Supervision of the management by the General
decrease in the holding of the Company's shares and Meeting of Shareholders, the Board of Supervisors and
provision of counter-guarantee for the Company's assets independent directors.
to controlling shareholders and other information Shareholders' rights to request for convening an
disclosure obligations. Extraordinary General Meeting of Shareholders and
Exclusion of voting rights: The avoidance and voting voting trust, etc.
procedures for shareholders and directors of related Independent directors openly solicit voting trust.
transactions have been formulated in the articles of
association.
Related transaction management: Related
Transaction Management System has been formulated,
and related information of related transactions has been
regularly disclosed in regular reports.
Responsibilities of employees: Sign Non-compete
Agreement with employees, to restrict and stipulate
(business and investment) and other aspects; implement
the system of avoidance of relatives and
recommendation across divisions or departments.
Governance of the Board of Directors
The Board of Directors of Topband consists of 9 directors, including 6 non-independent directors and 3 independent directors (including
one female director).6 non-independent directors include 2 employee representative directors; 3 independent directors are independent of the
actual controllers, controlling shareholders and other related parties of the Company. More than half of the directors in the audit committee,
nomination committee and remuneration and appraisal committee are independent directors. They act as conveners, to independently make
judgments and express opinions on major issues related to the Company as external experts, objectively supervise the decision-making level
and improve the corporate governance level.
The Board of Directors has been conscious of the importance of continuous improvement of its own performance to leading the
Company, so it has paid great attention to the selection process and ability training of management team members. Directors of the Company
shall be reelected every 3 years. The election process fully considers the opinions of shareholders and employees. The replacement of
non-employee representative directors must be submitted by the Board of Directors and resolved by the General Meeting of Shareholders,
and the replacement of employee representative directors must be resolved by the congress of workers and staff. During selection of directors,
Topband not only pays close attention to the professional competence of candidates in their fields of work, but also fully emphasizes the
Company's management experience and abilities in decision-making judgment, risk prevention, talent identification and employment, and
pioneering and innovation, so as to ensure accurate insight of the Board of Directors into the industrial operation environment and front-end
market.
As an important reflection of the governance process of the Board of Directors, the Company has deliberated and adopted the Rules of
Procedure of the Board of Directors, and set up the procedures for reporting the affairs of the Board of Directors by various departments. For
example, the general manager shall make an annual work report to the Board of Directors through the procedure every year and submit major
business matters to the Board of Directors for deliberation. Topband attaches great importance to the Company's long-term growth and
employee incentive system. Since listing, Topband has regularly implemented the equity incentive plan, assessed the Company's equity
incentive according to the assessment results in each assessment year, and reported the assessment results to the Board of Directors for
deliberation and approval before exercising or unlocking.
Related data of annual total remuneration ratio
Ratio of the annual total remuneration of the highest earning individual in the Company to the median of the annual 18.37
total remuneration of all employees
Ratio of increased percentage of the annual total remuneration of the highest earning individual in the Company to -1.22%
the median of increased percentage of the annual total remuneration of all employees
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ESG & Social Responsibility Report of Topband Corporation 2022
Shareholder's equity
In order to make shareholders more aware of many details or major issues in the operation of Topband and enhance the supervision and
management role of small and medium investors, the Company has set up a network information disclosure platform and an investor hotline,
aiming at timely and accurately disclosing important issues that have a significant impact on investors' decision-making, especially those
involving conflict of interest information.
Topband performs information disclosure in strict accordance with the Rules Governing the Listing of Shares on Shenzhen Stock
Exchange, Self-regulatory Guidelines for the Companies Listed on the Shenzhen Stock Exchange No. 1 – Standardized Operation of the
Companies Listed on the Main Board issued by Shenzhen Stock Exchange, and Administrative Measures on Information Disclosure by
Listed Companies, and discloses regular reports and temporary announcements truly, accurately, timely, completely and fairly through the
information disclosure media designated by the CSRC, so as to ensure that all investors can obtain the Company's information fairly. In
addition, voluntary information disclosure shall be moderately increased on the basis of ensuring the compliance of information disclosure,
to improve the reference and practicality of the Company's information disclosure. The Company regularly discloses the cross appointment
of the Board of Directors, related cross shareholding with suppliers and other stakeholders, shareholding of controlling shareholders and
daily related transactions in the year by announcement, and gives shareholders the rights and interests to consult and copy the articles of
association, minutes of General Meeting of Shareholders, resolutions of Meetings of the Board of Directors, resolutions of Meetings of the
Board of Supervisors, and financial and accounting reports, so as to ensure the transparency of the Company's information.
In 2022, Topband disclosed 4 regular reports and 102 other announcements on the website of Shenzhen Stock Exchange and
http://www.cninfo.com.cn.In 2022, the Company released the second annual social responsibility report, which set forth the performance of
corporate social responsibility from all stakeholders (government, suppliers, customers, employees, investors, etc.) of listed companies, and
responded to the main issues of concern of stakeholders in environment, society and governance, thus providing investors with a channel for
comprehensive understanding of the Company in addition to the annual report. Since 2021, the Company has increased the disclosure of
annual reports and ESG reports in English, which facilitates investors to understand the Company from multiple aspects in addition to the
operating data, and provides convenience for the overseas investors to read.
While improving the information disclosure system, Topband is also actively building a bridge for information communication,
maintaining communication with the capital market by organizing on-site research and teleconferences, holding regular report interpretation
meetings, and major event teleconferences, and promoting the Company's value and protecting the rights and interests of the investors.
Topband also irregularly holds online exchange meetings and other activities for investors in Shenzhen. By increasing the frequency of
on-site visits and online communication, Topband increases the investors' publicity and guidance on the Company's industry, industry
development trends, and competitive advantages, promotes the consistency of interests between shareholders and the Company's
management, increases the investors' confidence, and ultimately benefits investors.
61
Governance
In 2022, Topband held 4 regular teleconferences to fully disclose the participants and exchange contents and maintain information
sharing among investors; the number of roadshows increased year-on-year. More than 100 roadshows were completed through field research,
teleconferences, strategy meetings, anti-roadshows and other means, and 23 research minutes were disclosed. The contents of the meeting
exchanges and key issues that investors are more concerned about were disclosed promptly in the form of research minutes. At the same time,
409 interactive responses were completed in time, which facilitated investors to obtain the Company's business dynamics in time. In October
2022, the Company was successfully brought into the range of "margin trading target" shares in Shenzhen Stock Exchange, and the trading
activity of investors was improved.
In addition, Topband also fully emphasizes the shareholders' participation in governance. For example, the General Meeting of
Shareholders of the Company deliberates and approves the Remuneration Management System for Directors, Supervisors and Senior
Executives, and the annual remuneration of the Company's directors and supervisors must be submitted to the Annual General Meeting of
Shareholders for deliberation every year. In terms of protecting the rights and interests of minority shareholders, the Company's General
Meeting of Shareholders provides two ways (online voting and on-site participation) to participate in the meeting, to ensure and support
minority shareholders to exercise their voting rights and ensure that all shareholders enjoy equal status; during deliberation of each proposal,
separate vote counting shall be conducted on matters that affect the interests of minority shareholders to ensure their right to speak; the
directors, supervisors and senior executives also fully respect the rights and interests of medium and small investors and facilitates the
exercise of supervision by minority shareholders.
Topband values reasonable investment returns for investors, establishes the consciousness of rewarding shareholders, and takes into
account the sustainable development of the Company, to maintain a continuous and stable profit distribution and cash dividend policy. On the
premise of ensuring sufficient cash dividends and a reasonable size of the Company's share capital, the Company has formulated long-term
and relatively stable profit distribution methods and practical and reasonable dividend plans based on reasonable returns to investors
(especially minority shareholders), actively rewarding shareholders.
In April 2022, the Company continuously rewarded the investors through cash dividends and other means. Based on the 1,254,260,172
shares after the repurchased shares in the Company's repurchase account are deducted from the total share capital on the equity registration
day, the Company distributed a cash dividend of RMB 0.5 (including tax) to all shareholders for every 10 shares, and completed the dividend
amount of RMB 62,713,008.60 in 2021. The plan was implemented in April 2022.
Corporate Profit Distribution from 2019 to 2021 12
2019 2020 2021 Total
Cash dividend 50,375,872.45 56,018,894.45 62,713,008.60 169,107,775.50
Amount (including tax)
Net profits attributable to ordinary share shareholders 326,982,110.07 532,161,123.64 564,964,282.18 1,424,107,515.89
of listed companies in the annual consolidated
statements of dividends
Ratio of cash dividend amount to the consolidated net 15.41% 10.53% 11.10% 11.87%
profit attributable to the parent company
Repurchased share amount 55,898,367.50 20,004,351.75 0 75,902,719.25
Ratio of repurchased share amount to consolidated net 16.90% 3.74% 0 5.33%
profit attributable to the parent company
Total cash dividends (including repurchase forms) 106,274,239.95 76,023,246.20 62,713,008.60 245,010,494.75
Ratio of total cash dividends (including repurchase 32.52% 14.29% 11.10% 17.20%
forms) to consolidated net profit attributable to the
parent company
12
The net profit attributable to ordinary share shareholders of the listed company in the annual consolidated statements of dividends in 2019
and 2020 is the data after retrospective adjustment in the 2021 annual report.
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ESG & Social Responsibility Report of Topband Corporation 2022
In March 2022, the Company released the Repurchase Report, which is the third repurchase after the repurchase of the Company in
2018 and 2020.Based on the confidence in the future development prospects, the recognition of the Company's value, and the Company's
long-term sustainable development, the Company decided to repurchase some shares of the Company by centralized bidding with its
self-own funds of RMB 40 to 60 million, and all the repurchased shares will be used for equity incentives in the future. As of the end of 2022,
the Company has completed a repurchase amount of RMB 52.4345 million, with an average transaction price of RMB 10.21.
From 2019 to 2021, the Company Since listing in 2007
has accumulated a net profit The Company's accumulated cash
Since listing in 2007, the Company
attributable to the parent company of dividends (including repurchased
has repurchased 20 million shares.
RMB 1.424 billion. shares) are RMB 682 million.
Accumulated cash dividends
(including repurchased shares) of Average dividend ratio reaching Accumulated repurchase amount of
RMB 245 million 27.68% RMB 132 million
Average dividend ratio reaching
17.20%
In 2022, the Company planned to distribute a cash dividend of RMB 0.6 (including tax) to all shareholders for every 10 shares based on
a total share capital of 1,264,354,172 shares (excluding 5,181,200 repurchased treasury shares). This plan should be deliberated and passed
◥
by the Company's General Meeting of Shareholders in 2022 before implementation.
Preventing Operation Risks
Compliance and risk management
Topband always adheres to the compliance business philosophy of integrity, honesty, and reliability. Through a series of measures, such
as improving the compliance and risk management system construction, cultivating employees' awareness of compliance, and setting up
compliance supervision mechanism, Topband will actively improve the Company's compliance and risk management level and ensure the
legal and compliant development of the Company's business. The Company also actively advocates the establishment of a fair, just and
honest business environment, strictly regulates business transactions, adheres to business ethics, and lays a solid foundation for achieving
sustainable management.
Based on years of management experience, Topband has developed systems related to compliance management and business ethics such
as the Topband Group Business Conduct and Compliance Guidelines, Corporate Accountability, Administrative Measures for Complaints
and Reports on Anti-unfair and Fraudulent Acts, Administrative Measures for Declaration of Conflicts on Interest between Employees and
the Company, Administrative Measures for Anti-unfair Competition, and has formed an internal control management system with the human
resources department and audit department as supervisory departments based on the Internal Control Management System.
The Company also attaches great importance to the construction of clean governance and actively creates an incorruptible culture
around anti-bribery and anti-corruption. Topband has formulated the Anti-commercial Bribery Agreement, which explicitly stipulates policies
related to gifts, hospitality, company entertainment, etc., and clearly states no acceptance of gifts and any benefits or fees from trading
entities. Before signing the cooperation contract with the third party, Topband also asks it to sign the Integrity Commitment Letter and the
Anti-Commercial Bribery Agreement to realize the integrity management of the whole chain.
In the Administrative Measures for Complaints and Reports on Anti-unfair and Fraudulent Acts, Topband has clearly set up reporting
channels for compliance issues, including two ways: hotline and reporting email. All employees can report issues through the two ways:
hotline and reporting email, including anonymous reporting. Any reports received will be carefully and promptly reviewed and approached.
At the same time, according to the Regulations on the Protection of Whistleblowers, the Company will strictly protect the personal
information of whistleblowers, and also reward them with bonus if the report is verified to be true. For violations, the Company will take
disposal measures such as credit score deduction, warning, demerit recording, dismissal, and even transfer to judicial authorities depending
on the severity of the situation, and announce a warning within the Company.
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Governance
While continuously improving the compliance and risk
management system, Topband fully recognizes that compliance and
risk management is also the responsibility of every employee in the
Company, and shall make the awareness deeply imprinted in
people's mind. In order to assist employees to understand the
Company's requirements on compliance and risk management, the
Company carries out publicity activities through multiple channels,
such as the intranet, the official website, the anti-fraud official
account of the Company's audit department, and the internal
publication Yanxingzhe, to ensure that the relevant concepts and
mechanisms are deeply imprinted in people's mind. The Company
actively integrates and summarizes the situations and experience
encountered in previous work, and has launched a series of special
lectures on practical issues, such as Risk Identification and Control Training site of the Preservation of Litigation Evidence in
in Transaction from the Perspective of Contract Terms, Legal Risk Commercial Transactions
Control Training of Advertising Law, Preservation of Litigation
Evidence in Commercial Transactions, Signal Identification and
Prior Prevention and Control of Customer Performance Risk, etc.,
comprehensively covering case interpretation, current affairs express
delivery, group policy interpretation and other key learning contents.
The Company also provides anti-fraud and incorruptible culture
training to new employees every year.
Since its listing, under the guidance of the audit committee, the
Company has continuously strengthened internal audit supervision,
covering the internal control cycle, daily operational activities,
system compliance construction, anti-fraud supervision and other
matters of the Company and its holding subsidiaries within the
system. In 2022, the Company conducted a total of 22 internal Training site of the Risk Identification and Control in Transaction
control audit projects, proposed 62 audit recommendations, handled from the Perspective of Contract Terms
15 dismissals for violations of rules and regulations, recorded 28
major demerits, promoted loss recovery and cost reduction, and
saved approximately RMB 9.68 million.
Compliance Publicity-Submission of Yanxingzhe
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ESG & Social Responsibility Report of Topband Corporation 2022
In the future, Topband will continuously enhance the supervision efforts, strengthen the compliance and risk management capabilities,
improve various management measures, and cooperate with the industry and market to contribute to purifying the business environment and
maintaining sustainable and stable operations. The Company will further improve the internal control and management system, including risk
assessment, early warning, monitoring, etc., and ensure timely identification and control of compliance risks; strengthen the supervision of
third-party suppliers, establish the supplier assessment, management and appraisal mechanisms, and ensure that all aspects of cooperation
with them comply with the Company's compliance requirements; continuously strengthen the training and publicity of employees'
compliance awareness, and further enhance employees' compliance awareness and risk prevention capabilities through regular training
courses, internal competitions, etc.; continuously optimize the Company's internal complaint reporting mechanism, encourage employees to
report problems in time, investigate and handle problems reported in time, and publicly report them; further strengthen communication and
cooperation between the Company and regulatory authorities and other relevant parties, and jointly promote compliance standards and
regulatory requirements in the industry.
Comprehensive prevention of operation risks by information means
In 2022, the Company's legal department deliberated contracts and model contracts
through the OA process, reviewed and signed back 4,934 business contracts, and
completed the contract performance review and contract archive inspection of supply
Legal risk prevention and sales contracts, to effectively prevent various business legal risks. In 2022, the
Company added a receivable accounting approval node for sales contracts, effectively
regulating customers' collection methods, and preventing financial risks caused by
commercial bills or supply chain financing bills.
In 2022, the Company expanded the supplier introduction channels and added a
Integrated supply chain "supplier self-recommendation" channel on its official website, effectively avoiding
human factors preventing the introduction of suppliers. The Company has also
management
completed the construction of a competitive supplier development and management
process, forming supplier competition, BOM competition and order quota competition.
Based on the Topband data analysis platform, the Company establishes an inventory
risk monitoring and analysis mechanism, which categorizes system library into several
types such as normal inventory, strategy inventory and risk inventory in real-time,
Inventory as well as material assists businesses in identifying risks in advance and handling potential inventory
preparation risk analysis and issues. Based on the prediction coverage of long-term key material preparation as well
control as demand and supply market conditions, the Company can adjust and guide the time
and quantity of supplier preparation and incoming materials through the ERP material
preparation strategy, effectively reducing material preparation and inventory risks
based on customer delivery.
Based on the SAP credit management function, the Company achieves automatic credit
control through relevant business activities in the system on the premise of determining
Credit management and customer credit conditions, to minimize credit risk when delivering goods or services.
Based on SAP's accounting period management function, the Company can effectively
accounting period management
manage the payment terms and days of customers and suppliers, automatically
control determine the accounting period base date and expiration date through business
activities, and issue aging reports, to realize risk control of overdue accounts receivable
and payable.
65
Governance
Information security protection
Information security is the top priority of Topband's operation management. Therefore, the Company has established an information
security leadership group, created a professional information security management team, and continuously improved the overall security
management system. Under the multi-team collaborative framework of building a security working group, security project implementation
group, trade secret protection committee and external consultants, a three-level information security management structure has been formed.
The information security is implemented in the daily operation of the Company by empowering the four security lines.
Topband information security leadership group
Corporate system division
Security project Trade secret protection
Security working team External consultant
implementation team committee
Information security A third-party security team
Network engineer Trade secret technical team
supervisor entrusted
Information security External ISO27001
Information security officer Trade secret audit team
engineer Review team
Information security Trade secret execution
System administrator External emergency team
emergency team team
Information security
internal auditor Legal advisor
Organizational Structure of Information Security Leadership Group of Topband
Trade secrets, as an important component of intellectual property, play an important role in the technological innovation. The Company
incorporates trade secret protection and management into its overall development strategy and establishes a trade secret protection and
management system in line with business development. Under the guidance of the system, the Company establishes an independent trade
secret protection management organization and innovatively assigns trade secret administrators in 6 core departments to promote the
implementation and supervision of trade secret protection management requirements in the departments; it sorts out nearly 100 core assets of
the Company, standardizes their storage and transmission, and continuously ensures the security of the Company's trade secret; it formulates
the Regulations on Rewards and Punishments for Violations of Trade Secrets to standardize employees' daily confidentiality behavior; in
order to enhance personnel's confidentiality awareness, the Company organized more than 10 trade secret protection management training
sessions and 4 online and offline activities in 2022, covering over 80% of R&D personnel, and forming a unique confidentiality culture of the
Company. Since 2021, the Company has comprehensively upgraded the trade secret protection management system. In 2022, the Company
continuously improved the trade secret management process, established a full process of confidentiality management from employee entry
to resignation, and integrated multiple department management resources to develop a process for handling secret disclosure. At the same
time, Topband requires third-party organizations to sign confidentiality agreements and conduct regular assessments of suppliers through the
Annual Review of Supplier Information Security - IT to strictly control the performance of suppliers' responsibilities.
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ESG & Social Responsibility Report of Topband Corporation 2022
While building an internal system, the Company actively participates in
various activities organized by the Trade Secret Protection Base in Nanshan
District and drafts the local standard Regulations for Management of
Enterprise Trade Secrets in Shenzhen. In early 2022, Topband's trade secret
system construction was selected for the Guangdong Trade Secret Protection
Major Event and awarded the honorary certificate of "Pilot Demonstration
Enterprise for Trade Secret Protection" by Shenzhen Administration for
Market Regulation.
Target: Scientific norms In-depth defense Timely and Active compliance
comprehensive
Security management Security protection Security assurance Security operating
Improve:
capability capability capability capability
Security management Security technology system Security operating
system system
Security strategy Basic security Extended security Security capability
policy and top-level protection protection maturity analysis
design Security situation
Network Host awareness Management Asset
Security Security
strategy management
Private cloud platform
In-city/remote disaster
Security management Applicat recovery
organization ion Data
security
Security Security Vulnerability
Threat monitoring
Public cloud border management
Security
decision-making team Mobile Terminal security protection
supervision
Security
Security management security security
level Threat Risk assessment
Security execution Physical security intelligence
layer
Emergency plan
management
Security management
system Security event
Critical infrastructure Level protection testing and
inspection evaluation management
ISO27001 applicable
ISO certification Security Audit Proactive response to
Grade protection applicable threat
Security system evaluation
Cybersecurity Law of the
Basis: Industry regulations Level protection (target) IS027001
People's Republic of China
Overall Security System of Topband
The Company actively responds to the relevant policies of the national cybersecurity industry and has been deeply exploring and
actively practicing in the field of information security for many years. In 2020, the Company launched the Network Information System
Security Management System to comprehensively coordinate the network information platform. Starting from 3 levels of security technology,
security management and security operation, the Company implements "risk closed-loop management before, during and after the event"
based on actual business scenarios, forming a closed-loop security operation and maintenance system for risk assessment, security defense,
emergency response, continuous detection and response disposal. At present, the Company and relevant departments of Topband Software
have passed ISO27001 certification and Level III protection certification of T-smart IoT platform systems.
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Governance
Topband always pays attention to continuous effectiveness of the information security system. The Company conducts internal audits
every six months and external audits every year. For potential problems, the Company adopts event response process management according
to the Management Measures for Information Emergency Plan Disposal, and establishes an internal security detection system to carry out
security vulnerability inspection at all stages of the life cycle for all kinds of IT systems (application systems, servers, network equipment,
user terminals, etc.), to realize normalized monitoring. In order to further enhance the security management capabilities, Topband signed a
contract with Sangfor MSS managed security operation service during the reporting period, and continuously optimized security guarantee
work. In addition, the Company also sets information security reporting channels, including e-mail, anonymous letter, official account and
enterprise WeChat. The Company's security team conducts independent investigations into the issues involved in time and keeps the reported
information confidential. With several measures taken simultaneously, no information security incidents occur during the reporting period in
Topband.
Training on network security awareness of Topband
On October 27, 2022, the Company conducted a "Topband Network Security
Awareness Training" and invited Sangfor' network security experts to popularize the
importance of information security awareness to employees. The coverage people
include functional departments and various divisions of the Company, with a total of
56 participants.
Participation in the network security training of Bao'an Industry and Information Technology Bureau
In November 2022, the Company organized all network administrators and
information security officers (11 people) to participate in the theme training activity
of "Network Security Training of Bao'an Industry and Information Technology
Bureau in November 2022" online.
Data related to information security
Information security incident Piece 0
Percentage of business locations with ISO27000 information security management system certification % 20%
in the total number of business locations
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ESG & Social Responsibility Report of Topband Corporation 2022
Key Performance Indicator (KPI)
Indicator Unit 2022
Environmental issues
Annual total energy consumption MWh 91,938.48
Renewable energy power generation MWh 460.74
Diesel oil L 23,745.69
Natural gas m3 98,235
Power consumption MWh 90,642.643
Outsourced electricity KWh 74,076,960
Total water consumption ML 340
Total displacement ML 340
Total discharge of pollutants in water T No discharge of
wastewater
Hydrofluorocarbon emission KG 15,874.99
Hydrochlorofluorocarbon emission KG 29
Carbon dioxide fire extinguisher emission KG 330
Total weight of hazardous waste T 855.775
Total weight of non-hazardous waste T 402.85
Total weight of hazardous waste disposed T 815.466
Total weight of non-hazardous waste disposed T 402.85
Chemical leakage accident Time 0
Disposal of hazardous waste % 100% up to standard
Up-to-standard wastewater discharge % 100% up to standard
Up-to-standard noise emissions % 100% up to standard
Industrial waste gas emissions % 100% up to standard
The electricity consumption per unit output value is reduced % 2.99%
The water consumption per unit output value is reduced % 1.92%
Waste volume reduction per unit % 4.89%
69
Key Performance Indicator (KPI)
Indicator Unit 2022
Social issues
Number of R&D personnel Person 1,776
Proportion of R&D investment % 8.11%
Number of patent applications (including foreign patents and PCTs) Piece 600
Number of patents obtained (including foreign patents) Piece 566
Percentage of employees covered by collective agreements with work terms in
% 29.26%
all employees of all regions
Percentage of employees who cover the formal election of employee
% 0.25%
representatives in all employees of all regions
Days of employee maternity leave Day 178
Hours of employee breastfeeding leave h/day 1
Male/1,882
Total number of employees entitled to parental leave by gender Person
Female/1,923
Male/167
Total number of employees taking parental leave by gender Person
Female/93
Total number of employees returning to work during the reporting period after Male/161
Person
parental leave by gender Female/89
Male/96.41%
Return rate of employees on parental leave by gender %
Female/95.70%
Number of total employees Person 8,379
Orientation training
involves 2 h/session of
Total hours of the Company's training related to human rights policies or courses related to
Hour; %
procedures and percentage of employees covered human rights, totaling
approximately 24
h/year.
Employee lost time accident rate % 0
Employee lost time serious accident rate % 0
Percentage of workplaces where the Company has conducted employee health
% 100%
and security risk assessment in all workplaces
Proportion of employees represented by the Health and Safety Committee
% 100%
among all employees in all locations of the Company
Proportion of physical examinations for principal employees % 80%
Proportion of physical examinations for employees in key special posts % 100%
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ESG & Social Responsibility Report of Topband Corporation 2022
Indicator Unit 2022
Times of occupational hazard factor detection conducted in places involving
Times/year 2
occupational hazards
Maximum consecutive working months for special posts Month 3
Number of safety hazards discovered Event 537
Number of safety hazards rectified Event 537
Rectification rate of accident hazards % 100%
Number of deaths and mortality rate caused by work-related injuries Person; % 0；0%
Number and rate of serious work-related injuries (excluding deaths) Person; % 0；0%
Number and ratio of recordable work-related injuries Person; % 0；0%
Number of deaths caused by work-related health issues Person 0
Number of recordable cases of work-related health issues Person 0
Number of new employees participating in orientation training Person-time More than 6,600 people
Percentage of employees participating in orientation training % 78.77%
Achievement rate of safety education for new employees % 100%
Number of employees certified for qualifications Person More than 700
Number of core key personnel covered by IDP (Individual development plan) Person About 300
Regular performance
Percentage of employees who have accepted regular performance and career 100%, career
%
development assessment in all employees in all regions development
assessment 20%
Percentage of employees who have accepted relevant vocational or skill training
% 100%
in all employees in all regions
Percentage of employees who have accepted diversity, discrimination or
% 100%
harassment training in all employees in all regions
1,600 persons-time;
Number of participants and hours of skill training for professional posts Person; hour
about 260 h
Number of management skills training sessions and hours conducted by the 10 sessions; about 480
Session; hour
Company h
Nearly 1,000 sessions;
Number of skill training sessions and hours conducted within each department Session; hour
about 2,000 h
Employee training persons-time Person-time More than 20,000
Employee training investment amount RMB About 2 million
Total employee training hours h About 160,000
Average employee training hours h 15
Percentage of female employees in the total number of employees of the
% 42.27%
Company
Percentage of female holding senior management posts % 15%
Percentage of female on the board of directors % 11%
71
Key Performance Indicator (KPI)
Indicator Unit 2022
The average training time for
female employees is about 10 h;
The average training time for
male employees is about 18 h;
Average training time for employees of different genders and categories h The average training time for
professionals is about 8 h;
The average training time for
management personnel is about 6
h.
Percentage of total employees of workers from ethnic minorities, minority groups and
% 14.04%
vulnerable groups (for example, disabled person)
Percentage of employees from ethnic minorities, minority groups and vulnerable groups
% 0%
holding senior management posts (excluding the board of directors)
Gap of average remuneration both male and female (percentage of average total hourly
% 77%
wage of female employees in that of male employees)
Minimum number of weeks that the Company notifies employees and their
representatives in advance before implementing major operational changes that may Week 1
have a significant impact on the Company and employees
Total number of employee proposals received by the "Employee Experience Platform" Nos. More than 600
Number of holding of "employee communication meetings" Time 2
Number of employee feedback issues resolved through "employee communication
Person 29
meetings"
Minor injury accident (below Level VIII) Event 0
Serious injury accident (Level VIII or above) Event 0
Rectification rate of accident hazards % 100%
Chemical leakage accident Event 0
Food safety accident Event 0
Fire and explosion accident Event 0
Occupational diseases and taboos Event 0
Percentage of target suppliers who have signed the Sustainable Purchase
% 100%
Charter/Supplier Code of Conduct
Percentage of suppliers signing contracts that include environment, labor and human
% 100%
rights requirements
Percentage of target suppliers who have subjected to assessment of corporate social
% 100%
responsibility (CSR)
Percentage of target suppliers who have subjected to on-site audit of corporate social
% Official manufacturer 100%
responsibility (CSR)
Percentage of purchasers who have received sustainable purchase training in all regions % 100%
Proportion of purchase expenditure to local suppliers % 40%
Percentage of new suppliers selected according to environmental standards % Official manufacturer 100%
Number of suppliers who conduct environmental impact assessments Person 110
Number of suppliers identified as having actual and potential significant negative impact
Person 0
on the environment
72
ESG & Social Responsibility Report of Topband Corporation 2022
Indicator Unit 2022
Percentage of suppliers identified as having actual and potential significant negative
% Not involved
impact on the environment and approved for improvement after assessment
Percentage of suppliers identified as having actual and potential significant negative
% Not involved
impact on the environment and decided to terminate their relationship after assessment
Official manufacturer
Percentage of new suppliers selected according to social standards %
100%
Number of suppliers identified as having actual and potential significant negative
Person 0
impact on the social
Percentage of suppliers identified as having actual and potential significant negative
% Not involved
impact on the social and approved for improvement after assessment
Percentage of suppliers identified as having actual and potential significant negative
% Not involved
impact on the social and decided to terminate their relationship after assessment
Governance issues
Number of reports generated by the Company's reporting procedures Piece 19
Number of corruption incidents Piece 3
Total number of incidents where employees from the Company are dismissed or
Piece 3
disciplined due to corruption
Total number of incidents where the Company's contracts with business partners are
Piece 3
terminated or not renewed due to violations related to corruption
Total number of business locations where the Company has conducted internal
Person 2
audits/risk assessments on business ethics issues
Percentage of business locations where the Company has conducted internal audits/risk
% 25%
assessments on business ethics issues in the total business locations
Percentage of the Company's anti-corruption policies and procedures communicated to
% 100%
employees
Percentage of the Company's anti-corruption policies and procedures communicated to
% 100%
business partners by the Company
Number of information security incidents Piece 0
Percentage of business locations with ISO27000 information security management
% 20%
system certification in the total number of business locations
Percentage of business locations with the Company's anti-corruption management
% 0
system certification in the total number of business locations
Ratio of the annual total remuneration of the highest earning individual in the Company
18.37
to the median of the annual total remuneration of all employees
Ratio of increased percentage of the annual total remuneration of the highest earning
individual in the Company to the median of increased percentage of the annual total -1.22%
remuneration of all employees
Total number of governance body members who have received anti-corruption training
Person 9
in the Company
Total number of the Company's anti-corruption policies and procedures communicated
Person 9
to governance body members
Percentage of the Company's anti-corruption policies and procedures communicated to
% 100%
governance body members
73
Index of Indicators
Index of Indicators
Benchmarking Index of the Self-regulatory Guidelines for the Companies Listed on
the Shenzhen Stock Exchange No. 1 - Standardized Operation of the Companies
Listed on the Main Board issued by Shenzhen Stock Exchange
Terms and disclosure contents Report section Page
8.1 Overview Full Text of Report
3.1 Provision of value services 34-37
8.2 Business principles 4.1 Strengthening corporate governance 59-62
4.2 Prevention of operation risks 63-65
8.3 Social responsibility strategic planning and working mechanism 1. Responsibility management 15-17
8.4 Disclosure of social responsibility reports Full Text of Report
3.2 Stimulation of organizational vitality 54
8.5 Protection of employee rights and interests
4.1 Strengthening corporate governance 59-60
8.6: (I) Abiding by the environmental protection laws and regulations 2.1 Fulfillment of environmental 19-26
and industry standards responsibilities
8.6: (II) Environmental protection plan 2.2 Promotion of climate action 27-30
8.6: (III) Use of natural resources 2.1 Fulfillment of environmental 19-26
responsibilities 27-30
2.2 Promotion of climate action
8.6: (IV) Pollutant disposal 2.1 Fulfillment of environmental 22-26
responsibilities
8.6: (V) Pollution prevention and control facilities 2.1 Fulfillment of environmental 22-26
responsibilities
8.6: (VI) Payment of taxes and fees related to environmental protection Not involved
8.6: (VII) Environmental safety of supply chain 2.1 Fulfillment of environmental 19
responsibilities
8.6: (VIII) Other environmental protection responsibilities 2.1 Fulfillment of environmental 19-26
responsibilities
8.7: (I) Environmental protection policies, objectives and 2.1 Fulfillment of environmental 19-26
effectiveness responsibilities
8.7: (II) Annual total resource consumption Key Performance Indicator (KPI) 69
8.7: (III) Environmental protection investment and environmental 2.2 Promotion of climate action 27-29
technology development 2.3 Seizing climate opportunities 31-32
8.7: (IV) Emission pollutant management 2.1 Fulfillment of environmental 24-26
responsibilities
8.7: (V) Construction and operation of environmental protection 2.2 Promotion of climate action 19-26
facilities
8.7: (VI) Comprehensive utilization of waste disposal and waste 2.1 Fulfillment of environmental 22-23
product recycling responsibilities
8.7: (VII) Voluntary agreement signed with environmental protection 2.2 Promotion of climate action 29-30
department
8.7: (VIII) Rewards received from environmental protection department Not involved
8.7: (IX) Other voluntary disclosure information 2.3 Seizing climate opportunities 31-32
8.8 Implementation of environmental protection policies and corrective 2.1 Fulfillment of environmental 19-26
measures responsibilities
8.9 Environmental information disclosure Not applicable
8.10: (I) Product safety laws and regulations and industry standards 3.1 Provision of value services 41-42
8.10: (II) Production environment and process 3.1 Provision of value services 38-42
8.10: (III) Product quality and safety guarantee mechanism and accident 3.1 Provision of value services 38-42
emergency plan
8.10: (IV) Other production and product safety responsibilities 3.1 Provision of value services 41-42
8.11: (I) Employee management system and measures for handling 3.2 Stimulation of organizational vitality 43-54
violations
8.11: (II) Prevention of occupational hazards and supporting safety 3.2 Stimulation of organizational vitality 45-46
measures
8.11: (III) Employee training 3.2 Stimulation of organizational vitality 49-50
8.11: (IV) Responsibilities for protection of rights and interests of other 3.2 Stimulation of organizational vitality 43-54
employees
8.12 Scientific ethical norms 3.1 Provision of value services 34-37
8.13 Content of social responsibility report Full Text of Report
74
◥
ESG & Social Responsibility Report of Topband Corporation 2022
GRI content index
GRI standard Disclosure items Report section Page
GRI 2: General disclosure
2-1 Organizational details About the Report
1. Organization 2-2 Entities included in organizational About the Report
and reporting sustainability reports
practices 2-3 Report period, report frequency and contact About the Report
person
2-6 Activities, value chain and other business About Topband 04-13
relationships
2. Activities and 2-7 Employees About Topband 06
workers 3.2 Stimulation of organizational 44
vitality 70
Key Performance Indicator (KPI)
2-9 Governance structure and composition 4.1 Strengthening corporate governance 59-60
2-10 Nomination and selection of the highest 4.1 Strengthening corporate governance 59-60
governance body
2-11 Chairman of the highest governance body 4.1 Strengthening corporate governance 59-60
2-12 Supervision of the highest governance body 4.1 Strengthening corporate governance 59-63
in terms of management impact
2-13 Responsibility authorization for 4.1 Strengthening corporate governance 59-63
management impact
3. Governance 2-14 Role of the highest governance body in 1.1 ESG governance 15
sustainability reports
2-15 Conflict of interest 4.1 Strengthening corporate governance 59-63
2-16 Communication of important concerns 1.3 Stakeholder communication 17
4.1 Strengthening corporate governance 59-63
2-19 Remuneration policy 4.1 Strengthening corporate governance 59-63
2-20 Procedure for determining remuneration 4.1 Strengthening corporate governance 59-63
2-21 Annual total remuneration ratio 4.1 Strengthening corporate governance 60
Key Performance Indicator (KPI) 73
2-22 Statement on sustainable development 1.1 ESG governance 15
strategies
4. Strategy,
2-26 Mechanisms for seeking advice and raising 3.2 Stimulation of organizational 43-54
policy and
concerns vitality
practice
2-27 Compliance with laws and regulations 4.2 Prevention of operation risks 63-65
Key Performance Indicator (KPI)
5. Stakeholder 2-29 Methods of stakeholder participation 1.3 Communication with stakeholders 17
participation
GRI 3: substantive issues
3-1 Process of determining substantive issues 1.2 Assessment of substantive issues 16
3-2 List of substantive issues 1.2 Assessment of substantive issues 16
3-3 Management of substantive issues 1.2 Assessment of substantive issues 16
GRI 201: Economic performance
GRI 3: Management method Economic performance management About Topband 04-13
disclosure methods
201-1 Direct economic value generated and About Topband 05-06
distributed
Topic-specific disclosure
201-2 Financial impacts and other risks and 2.2 Promotion of climate action 27-30
opportunities by climate change 2.3 Seizing climate opportunities 31-32
GRI202: Market performance
About Topband 04-13
GRI 3: Management method
Market performance management methods 3.2 Stimulation of organizational 47-49
disclosure
vitality
GRI 203: Indirect economic impact
GRI 3: Management method Indirect economic impact management 56-57
3.4 Engaging in social welfare
disclosure methods
Topic-specific disclosure 203-1 Infrastructure Investment and 56-57
3.4 Engaging in social welfare
supporting services
75
Index of Indicators
GRI standard Disclosure items Report section Page
GRI 204: Purchase practice
GRI 3: Management method Purchase practice management methods 3.3 Building a sustainable supply 55-56
disclosure
Topic-specific disclosure 204-1 Proportion of purchase expenditure Key Performance Indicator (KPI) 72
to local suppliers
GRI 205: Anti-corruption
GRI 3: Management method Anti-corruption management methods 4.2 Prevention of operation risks 63-65
disclosure
205-1 Operation points that have conducted Key Performance Indicator (KPI) 73
a corruption risk assessment
205-2 Communication and training about 4.2 Prevention of operation risks 63-65
Topic-specific disclosure
anti-corruption policies and procedures Key Performance Indicator (KPI)
205-3 Recognized corruption incidents and 4.2 Prevention of operation risks 64
actions taken Key Performance Indicator (KPI) 73
GRI 206: Anti-competitive behavior
GRI 3: Management method Anti-competitive behavior management 4.2 Prevention of operation risks 63-65
disclosure methods
GRI 302: Energy
GRI 3: Management method Energy management methods 2.1 Fulfillment of environmental 19-21
disclosure responsibilities 27-30
2.2 Promotion of climate action
Topic-specific disclosure 302-1 Energy consumption within the 2.1 Fulfillment of environmental 20-21
organization responsibilities 69
Key Performance Indicator (KPI)
302-4 Reduction of energy consumption 2.2 Promotion of climate action 27-30
Key Performance Indicator (KPI) 69
302-5 Reduction of energy demand for 2.3 Seizing climate opportunities 31-32
products and services
GRI 303: Water resources and wastewater
GRI 3: Management method 303-2 Impacts related to management and 2.1 Fulfillment of environmental 19、26
disclosure drainage responsibilities
Topic-specific disclosure 303-4 Drainage 2.1 Fulfillment of environmental 26
responsibilities 69
Key Performance Indicator (KPI)
303-5 Water consumption 2.1 Fulfillment of environmental 26
responsibilities 69
Key Performance Indicator (KPI)
GRI 305: Emissions
GRI 3: Management method Emission management methods 2.1 Fulfillment of environmental 19-21
disclosure responsibilities
Topic-specific disclosure 305-1 Direct (category 1) greenhouse gas 2.1 Fulfillment of environmental 20-21
emissions responsibilities
305-2 Indirect energy (category 2) 2.1 Fulfillment of environmental 20-21
greenhouse gas emissions responsibilities
GRI 306: Wastes
GRI 3: Management method 306-1 Significant impacts related to waste 2.1 Fulfillment of environmental 22-23
disclosure generation and wastes responsibilities
306-2 Management of significant impacts 2.1 Fulfillment of environmental 22-23
related to wastes responsibilities
Topic-specific disclosure 306-3 Waste generated Key Performance Indicator (KPI) 69
306-5 Waste to be disposed Key Performance Indicator (KPI) 69
GRI 308: Supplier environmental assessment
GRI 3: Management method Supplier environmental assessment 2.1 Fulfillment of environmental 19
disclosure management methods responsibilities 55-56
3.3 Building a sustainable supply chain
Topic-specific disclosure 308-1 New suppliers selected according to Key Performance Indicator (KPI) 72-73
environmental assessment dimensions
308-2 Negative environmental impact of Key Performance Indicator (KPI) 72-73
supply chain and actions taken
76
ESG & Social Responsibility Report of Topband Corporation 2022
GRI standard Disclosure items Report section Page
GRI 401: Employment
GRI 3: Management method Employment management methods 3.2 Stimulation of organizational 43-54
disclosure vitality
Topic-specific disclosure 401-2 Benefits provided to full-time 3.2 Stimulation of organizational 51-53
employees (excluding temporary or vitality
part-time employees)
401-3 Parental leave 3.2 Stimulation of organizational 44
vitality 70
Key Performance Indicator (KPI)
GRI 402: Labor relations
GRI 3: Management method Labor relation management methods 1.3 Communication with stakeholders 17
disclosure 3.2 Stimulation of organizational 54
vitality
Topic-specific disclosure 402-1 Minimum notice periods for 3.2 Stimulation of organizational 54
operational changes vitality 72
Key Performance Indicator (KPI)
GRI 403: Occupational health and safety
GRI 3: Management method 403-1 Occupational health and safety 3.2 Stimulation of organizational 45-46
disclosure management system vitality
403-2 Hazard identification, risk 3.2 Stimulation of organizational 45-46
assessment and accident investigation vitality
403-5 Occupational health and safety 3.2 Stimulation of organizational 45-46
training for workers vitality
403-6 Promotion of worker health 3.2 Stimulation of organizational 45-46
vitality
403-7 Prevention and mitigation of 3.2 Stimulation of organizational 45-46
occupational health and safety impacts vitality
directly related to business relationships
Topic-specific disclosure 403-8 Workers applicable to occupational 3.2 Stimulation of organizational 45-46
health and safety management system vitality
403-9 work-related injuries 3.2 Stimulation of organizational 45-46 71
vitality
Key Performance Indicator (KPI)
GRI 404: Training and education
GRI 3: Management method Training and education management 3.2 Stimulation of organizational 49-50
disclosure methods vitality
Topic-specific disclosure 404-1 Average hours of training per year 3.2 Stimulation of organizational 50
per employee vitality 71
Key Performance Indicator (KPI)
404-2 Employee skill improvement plan 3.2 Stimulation of organizational 49
and transition assistance plan vitality
404-3 Percentage of employees who 3.2 Stimulation of organizational 49
regularly accept performance and career vitality 71
development assessments Key Performance Indicator (KPI)
GRI 405: Diversification and equal opportunities
GRI 3: Management method Diversification and equal opportunity 3.2 Stimulation of organizational 43-44、
disclosure management methods vitality 47-48
Topic-specific disclosure 405-1 Diversification of governance bodies 3.2 Stimulation of organizational 47
and employees vitality 71-72
Key Performance Indicator (KPI)
405-2 Proportion of basic salary and Key Performance Indicator (KPI) 72
remuneration both male and female
GRI 406: Anti-discrimination
GRI 3: Management method Anti-discrimination management methods 3.2 Stimulation of organizational 43-44、
disclosure vitality 47-48
GRI 408: Child labor
GRI 3: Management method Child labor management methods 3.2 Stimulation of organizational 43
disclosure vitality
GRI 409: Forced or compulsory labor
GRI 3: Management method Forced or compulsory labor management 3.2 Stimulation of organizational 43-44
disclosure methods vitality
GRI 413: Local community
GRI 3: Management method Local community management methods 3.4 Engaging in social welfare 56-57
disclosure
77
Index of Indicators
GRI standard Disclosure items Report section Page
GRI 414: Supplier social assessment
GRI 3: Management method Supplier social assessment management 3.3 Building a sustainable 55-56
disclosure methods supply chain
Topic-specific disclosure 414-1 New suppliers screened according to Key Performance 73
social criteria Indicator (KPI)
414-2 Negative social impact of supply Key Performance 73
chain and actions taken Indicator (KPI)
GRI 416: Customer health and safety
GRI 3: Management method Customer health and safety management 3.1 Provision of value 41-42
disclosure methods services
GRI 407: Customer privacy
GRI 3: Management method Customer privacy management methods 4.2 Prevention of 66-68
disclosure operation risks
Schedules
Terms Refer to Contents
Company, the Company, Topband Refer to Shenzhen Topband Co., Ltd.
RMB, RMB ten thousand and RMB Refer to RMB, RMB ten thousand and RMB 100 million
100 million
CSRC Refer to China Securities Regulatory Commission
Exchange Refer to Shenzhen Stock Exchange
Reporting period Refer to From January 1, 2022 to December 31, 2022
Articles of Association Refer to Articles of Association of Shenzhen Topband Co., Ltd.
Huizhou Topband Refer to Huizhou Topband Electrical Technology Co., Ltd.
Ningbo Topband Refer to Ningbo Topband Intelligent Control Co., Ltd.
Topband Mexico Refer to Topband Mexico Company Limited
Topband Romania Refer to Topband Smart Europe Company Limited
Topband Battery Refer to Shenzhen Topband Battery Co., Ltd.
Indian subsidiary Refer to TOPBANDINDIAPRIVATELIMITED
BG and BU Refer to BusinessGroup、BusinessUnit
IPD Refer to Integrated Product Development
78
Making the World Smarter and Low-carbon
Topband Industrial Park, Shiyan Town, Bao'an District, Shenzhen, China
Email: wenzh@topband.com.cn Shenzhen Topband Co., Ltd.
Tel.: 0755-26957035 Stock code: 002139.SZ
Website: www.topband.com.cn
