Goertek Inc.
2021 Corporate Social Responsibility Report
Stock Abbreviation: Goertek
Stock Code: 002241
March 29, 2022
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About This Report
This is the 12th Corporate Social Responsibility Report released by Goertek Inc. (hereinafter
referred to as "Goertek", "the Company" and "we"), covering the period from January 1, 2021
to December 31, 2021. The data from the Annual Report 2021, official documents and statistical
reports of Goertek are included in this report.
This report has been prepared in accordance with the Shenzhen Stock Exchange Social
Responsibility Instructions to Listed Companies, and the Self-regulatory Guidelines for Listed
Companies on Shenzhen Stock Exchange No.1 - Standardized Operation of Companies Listed
on the Main Board, with reference to the ISO 26000: Guidance on Social Responsibility, the
Guidelines for Preparing Corporate Social Responsibility Reports in China from the Chinese
Academy of Social Sciences, and the T/CESA 16003-2017 standard from the China Electronics
Standardization Association. In addition, based on GRI Standards for Global Sustainability
Reporting, this report focuses on presenting the CSR strategy, corporate governance, and
performance improvement.
This report is available in both print and electronic versions. To view the report online or obtain
an electronic version, please visit the website of Goertek Inc. at http://www.goertek.com.
Feedback
For any suggestions or doubts about this report, you can provide the feedback by contacting us,
and we appreciate your valuable feedback.
Address: No.268 Dongfang Road, High-tech Industrial Development District, Weifang
Tel: 0536-3050543
E-mail:goertekcsr.list@goertek.com
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Contents
1. Corporate Governance .............................................................................................................. 1
1.1. Company Profile ...................................................................................................................... 1
1.2. Corporate Operating Mechanism ............................................................................................. 4
1.3. Stakeholder Communication.................................................................................................... 9
2. Technological Innovation and Service ..................................................................................... 11
2.1. Technological Innovation Input ............................................................................................. 11
2.2. Promotion of Green Products ................................................................................................ 14
3. Employee Care ........................................................................................................................ 16
3.1. Respect for Employees and Protection of Their Legal Rights and Interests According to Law
...................................................................................................................................................... 17
3.2. Compensation and Benefits ................................................................................................... 19
3.3. Career Development and Growth of Employees ................................................................... 25
3.4. Employee Engagement and Communication ......................................................................... 32
4. Occupational Health and Safety .............................................................................................. 37
4.1. Hazard Identification and Control ......................................................................................... 38
4.2. Shaping A Sound Working Environment ............................................................................... 39
4.3. Protection of Employee Safety and Health ............................................................................ 44
4.4. Covid-19 Pandemic Prevention and Control ......................................................................... 47
5. Adherence to Green Operation, and Continuous Efficiency Improvement and Emission
Reduction ................................................................................................................................... 51
5.1. Environmental Management .................................................................................................. 51
5.2. Pollution Prevention and Control .......................................................................................... 51
5.3. Resource Recycling and Climate Change Mitigation ............................................................ 53
6. Integrity In Business ................................................................................................................ 61
6.1. Integrity Concept ................................................................................................................... 61
6.2. Fair Competition .................................................................................................................... 62
6.3. Anti-Corruption and Anti-Fraud ............................................................................................ 62
6.4. Respect For Intellectual Property Rights ............................................................................... 64
6.5. Client-Oriented ...................................................................................................................... 66
6.6. Promotion of Common Growth With Suppliers .................................................................... 70
7. Community Engagement ......................................................................................................... 72
8. Outlook................................................................................................................................... 74
Table of Corporate Honors In 2021 ............................................................................................. 75
Appendix: Gri Sustainability Reporting Standards Index Table .................................................... 78
General Disclosures ...................................................................................................................... 78
Materiality Disclosure .................................................................................................................. 83
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1. Corporate Governance
1.1. Company Profile
Since its establishment in June 2001 and listing on the Shenzhen Stock Exchange in May 2008,
Goertek Inc. has been a global high-tech innovator dedicated to serving the leading global clients
in the technology and consumer electronics industry, providing them with vertically integrated
product solutions of precision components and smart hardware, as well as the related design,
R&D and manufacturing services.
The Company's main business divides into three segments including precision components
business, smart audio device business and smart hardware business. The precision components
business focuses on acoustics, optics, microelectronics, structural components, and other
precision components. The related products include micro speaker/receiver, speaker module,
haptic component (actuator), wireless charging device, antenna, MEMS microphone, MEMS
sensors, micro-system module, VR optical component and module, AR optical component, AR
light engine, precision structural parts and etc. The above-mentioned products are widely applied
in devices such as smartphones, tablets, smart wireless earphones, VR, AR, smart wearable and
smart home devices. Smart audio device business focuses on providing products related to audio,
voice interaction, artificial intelligence, and other technologies. The main products include smart
wireless earphones (TWS), wired/wireless earphones, smart speakers, etc. Smart hardware
business focuses on providing products related to entertainment, health and home security. The
main products include VR, AR, smart wearable products, gaming consoles and accessories,
smart home products, etc.
The Company has innovative competitive advantages in the fields of acoustics, optics, MEMS
microelectronics and precision manufacturing, and owns many intellectual property rights in the
field of precision parts and components. In addition, the Company has accumulated rich
experience in projects by cooperating with industry-leading clients in the field of smart audio
device and smart hardware through "ODM", "JDM" and other business modes. During the
reporting period, the Company maintained a good, long-term cooperative relationship with
leading clients in the global technology and consumer electronics industry, kept growing in the
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number of patent applications and in technological capabilities. As a result, the company has
been constantly recognized by global clients for its product solutions and service capability, and
remains being an industry-leading manufacturer in the fields of micro speakers, MEMS
microphones, MEMS sensors, TWS, VR products, smart wearable products, gaming console and
accessories, etc.
During the reporting period, due to the continuous growth of demand of smart hardware products
such as VR, TWS, smart wearable products, gaming consoles and accessories, and the related
precision components, the Company has achieved significant growth in revenue and net profit.
At the same time, the Company further improved its position in the industry. During the reporting
period, the Company won many honors, including being ranked the 3rd company in the Top-100
China electronic component enterprises based on comprehensive economic indexes, the 86th
company in the Top-500 private enterprises in China's manufacturing industry, the 164th
company in the Top-500 private enterprises in China, as well as being the executive member
company of CITIF.
For other information of the Company, see the Company's Annual Report 2021.
Mission
A better life enriched by technology
Vision
To be a great company
Core values
Client-orientation, employee development, trustworthy and pragmatic, cooperation and
mutual benefits
Management philosophy
Cultivation and ingenuity, constant improvement, create core competence of leading reform.
Cultural slogan
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We make, we share, we thrive.
Our mission is the overarching orientation of the Company's value of existence, ultimate goal
and social responsibility. A better life that integrates health and beauty is the ultimate pursuit of
mankind. It also serves as the ultimate goal of the Company that is committed to creating value
for society with the application of technology. It has been our mission to develop cutting-edge
modern technology, and to integrate humanistic spirit into product design, so as to create artistic
products that lead future lifestyles, convey the concept of a better life, and satisfy people's pursuit
of a better life.
Our vision is a general overview of the Company's prospect and development, as well as a long-
term goal to be continuously pursued and a realm to be achieved in its future development. Our
vision of "To be a great company" is not only an inheritance of the excellent cultural value of
the past, but also an inherent demand and expectation for future development. With continuous
endeavors in innovation, products, services and brand, the Company aims to become a world-
class high-tech company, thus creating maximum value for clients, employees, partners and
society, and earning their respect.
Our core values are the basic value orientation followed by the Company, and also the core
principle and value judgment standard for guiding employees' behaviors. The consensus has
been reached on the core values of "client-orientation, employee development, trustworthy and
pragmatic, cooperation and mutual benefits" through extensive discussions. The core values are
the beliefs to be revered, the purposes to be pursued and the judgment standard to be relied upon,
which shall be continuously strengthened in the whole process of production and operation, thus
enabling all employees to consciously bear values in mind and put them into actions.
Our business philosophy is a philosophical reflection on the Company's business policy, business
strategy and management style. The Company is committed to the relentless pursuit of high
quality and ambitious goals, and dedicated to innovating product technology and manufacturing
techniques, thus creating excellence with continuous improvement. Meanwhile, we actively
embrace transformation, and efficiently keep accumulating the knowledge, skills, tools, methods
and resource integration ability required for transformation, so as to lead the sustainable
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development of the Company with transformation and shape our core competitiveness of
"leading power of transformation".
"We make, we share, we thrive" is the cultural slogan of Goertek. The Company advocates the
cultural concept of "being together". Based on the common pursuit, the Company forms a
community of shared cause, interests and destiny together with clients, employees, suppliers,
and society, so as to create products for a better life together, share the achievements and honors
together, and grow in the process of value creation together.
Culture serves as the cornerstone of corporate survival and development, and an essential part
of the core competitiveness of the Company. In 2021, based on the organizational culture
assessment, the Company focused on the problems identified in the organizational culture
assessment of each department and formulated improvement measures accordingly, so as to
enhance the corporate culture recognition and employees' experience. The cultural philosophy
being promoted features integrity, loyalty, diligence, initiative, responsibility, objectivity,
fairness, professionalism and pragmatism. The client-orientation strategy transformation project
is carried out to closely integrate culture construction with business and enhance the management
of the Company. In the meantime, the Company has strengthened the effect of honor incentives
by upgrading its company-level honor system. This has refined the Company's concept of talents,
and elevated employees' sense of achievement, thus effectively guaranteeing the implementation
of the Company's culture and forging consensus among all employees.
1.2. Corporate Operating Mechanism
1.2.1. Operation of the Board of Directors
During the reporting period, the Company continuously improved the corporate governance
structure, the internal management and control system, and continued to carry out corporate
governance activities in strict accordance with the requirements of relevant laws, regulations and
normative documents such as Company Law, Securities Law, Corporate Governance of Listed
Companies, Rules Governing the Listing of Shares on Shenzhen Stock Exchange as well as with
relevant documents of China Securities Regulatory Commission and the relevant instructions of
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Shandong Securities Regulatory Bureau, so as to further standardize the Company's operation
and improve the level of corporate governance.
By the end of the reporting period, the actual practice of corporate governance met the relevant
requirements of the above laws, administrative regulations, departmental rules and normative
documents on the governance of listed companies, and no documents concerning administrative
supervision measures taken by the supervised departments was received.
By the end of the reporting period, the details of actual practice of corporate governance are as
follows:
1. Shareholders and shareholders' meetings: The Company has convened and held shareholders'
meetings in strict accordance with the Rules for General Meeting of Shareholders of Listed
Companies and the Company’s Rules of Procedure of Shareholders' Meetings, so as to ensure
that all shareholders, especially minority shareholders, enjoy equal status and fully exercise their
rights; In addition, lawyers were engaged to witness the legitimacy of the convening, holding
and voting procedures of each general meeting of shareholders.
2. The Company and controlling shareholders: The Company, with independent business and
operation autonomy, is independent of the controlling shareholders in business, personnel, assets,
organizations and finance. The Board of Directors, Board of Supervisors and internal institutions
of the Company operate independently. The controlling shareholders exercise their rights
through shareholders’ meeting, and there was no direct or indirect interference with the
Company’s operations and decision-making beyond the general meeting of shareholders.
3. Directors and the Board of Directors: The Company elects directors in strict accordance with
the selection and appointment procedures stipulated in the Articles of Association. There are
three independent directors in the Board, the number of directors and the composition of the
Board of Directors meet the requirements of laws and regulations and the Articles of Association.
All directors can carry out their work in accordance with Rules of Procedure of the Board of
Directors and Working System for Independent Directors, they attended all the Board of
Directors meetings, and all the related trainings as required.
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4. Supervisors and the Board of Supervisors: The election of supervisors and the composition of
the Board of Supervisors were in strict accordance with relevant provisions of Company Law
and Articles of Association. The Company's supervisors strictly followed the Rules of Procedure
of the Board of Supervisors. All supervisors scrupulously attended the sessions, seriously
fulfilled their duties diligently, and supervised and issued opinions for major issues, related-party
transactions, and financial status.
5. Performance appraisals and incentives: The Company has gradually improved its fair and
transparent performance evaluation standards and incentive a restraint mechanisms for directors,
supervisors and senior management. The appointment of Company’s senior management is open
and transparent, and in line with the provisions of laws and regulations.
6. Stakeholders: The Company fully respects and safeguards the legitimate rights and interests
of stakeholders, actively communicates and coordinates with stakeholders, to balance the
interests of the society, shareholders, the Company, employees and other parties, and jointly
promotes the Company's development in a sustainable and steady manner.
7. Information disclosure and transparency: The Company duly performed the disclosure
obligations in accordance with the provisions of Rules Governing the Listing of Shares on
Shenzhen Stock Exchange, Articles of Association and Investor Relations Management Rules,
and discloses information as per the law, so as to ensure that the information disclosure is true,
timely, accurate and complete. All shareholders were given equal access to the information. The
Company has gradually revised and improved the Insider Information Management Rules,
further improved the insider information management, strengthened the confidentiality of insider
information, maintained the fair principle of information disclosure and protected the legitimate
rights and interests of investors. The Company has appointed the secretary of the Board of
Directors as the head of investor relations management of the Company, responsible for the
Company's information disclosure and investor relations management. The Company has
designated Securities Times, China Securities Journal, Shanghai Securities News, Securities
Daily and cninfo.com.cn to disclose Company’s information in a faithful, accurate and timely
manner, strictly in accordance with relevant laws and regulations, so that all shareholders have
a fair chance to get information.
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For other information on the operation of the Board of Directors and corporate governance of
the Company, see Section IV: Corporate Governance of the Company's Annual Report 2021.
1.2.2. Operation of the CSR Management Committee
Upholding with the core values of "client-orientation, employee development, trustworthy and
pragmatic, cooperation and mutual benefits" and the corporate social responsibility of "law-
abiding, employee respecting, sustainable developing, and give back to society", Goertek
actively pursues the unity of corporate social responsibility and economic growth. Our CSR
management philosophy defines that while pursuing profits, we should always act as a
responsible global corporate citizen. We always take shareholders and creditors, employees,
clients, communities and sustainable development as our own responsibility, actively facilitate
the fulfillment of stakeholders' social responsibilities, protect employees' legitimate rights and
interests, engage in environmental protection and public welfare activities, and boost the
coordinated and harmonious development of the Company and society.
Since its establishment, Goertek has gradually set up its quality, environmental and occupational
health and safety management systems, and passed the certification of ISO9001, ISO14001 and
ISO45001, and introduced the EU WEEE/RoHS Directives. In 2005, the Company was certified
by the ISO/TS16949. In 2007, the Company founded its occupational health and safety
management committee and a dedicated company-level division to take full responsibility for
the OH&S system for employees. In 2009, a hazardous substances management system was set
up and the Company was certified by the IECQ QC080000. It was further certified by the
IEC17025 in 2010, and by National Integration of Informatization and Industrialization
Management System, the China AEO Certificate by China Customs, the GB/T29490-2013, and
the ISO/IEC27001:2013 Information Security Management System in 2016. In addition to these
certifications, Goertek studied international CSR standards such as SA8000 and formally
implemented the CSR system since 2011, and timely benchmarked with industry standards and
obtained external opinions in line with ISO26000, China Electronics Standardization
Association standard T/CESA 16003-2017 and other international standards (such as GRI
Standards and RBA Code of Conduct), as well as requirements of various stakeholders.
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In order to facilitate its CSR efforts, Goertek formally established the CSR Management
Committee in 2013. In 2021, the Company continued to optimize and improve the scope and
responsibilities of the CSR Management Committee based on its business adjustment, so as to
better meet the requirements of various stakeholders in the field of CSR. Moreover, we have
established the committee operation mechanism to continuously upgrade the company's CSR
governance and improve the overall decision-making and operational efficiency of the
committee. The current organizational structure of the CSR Management Committee as follow:
CSR Management
Committee
Related Subsidiary/Platform
Business Group
Professional Teams Management Team
Steering Team
Human Resource (HR)
EHS
Ethics
Investors/Clients
Government/Supply Chain
The President of the Company serves as the Head of the CSR Management Committee, and the
core management of the Company's Vice President or above serves as the member of the
Committee, who is responsible for decisions on the overall CSR policy of the Company. The
CSR Management Committee consists of a dedicated team responsible for formulating CSR-
related rules and regulations, and assisting in the formulation of CSR strategic objectives and
work planning. The Committee coordinates the CSR work of various teams, provides guidance,
coordination, supervision, inspection and evaluation of their work, and assists in the organization
of CSR meetings, events and other CSR management coordination work. The CSR Management
Committee convenes a decision-making meeting at least once a year to discuss relevant issues
and report on work progress. All related professional teams communicate with stakeholders on
CSR management concepts, objectives, policies and practices, and provide the feedback on the
demands of stakeholders to the dedicated team of CSR Management Committee for review. The
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Business Group Management Team formulates annual work plans and regularly reviews work
progress.
In addition, a standardized CSR target indicators and management plan have been developed.
The CSR Management Manual, as the overarching guideline for Goertek to advance its CSR
work, covers various business areas, including targets for client satisfaction, employee
satisfaction, intellectual property, electricity consumption per unit output value, number of
environmental accidents, OH&S management, and HSPM which are integrated into the
performance assessment of each department, thus strongly promoting the organic integration of
social responsibility management and daily operation.
1.3. Stakeholder Communication
By continuing to dynamically identify stakeholders and maintain good communication with
them, Goertek is able to promptly understand their reasonable expectations and demands, learn
from their advanced ideas, and actively listen to their suggestions for the Company's
development, which is crucial for the sustainable development of Goertek. In order to effectively
communicate with stakeholders on a continuous basis, Goertek has set up various
communication channels through departments of marketing, product technical support,
securities, human resources, labor union, and sourcing, to engage with stakeholders around CSR
management concepts, objectives, policies, and practices, which are then disclosed via this report
and the corporate website.
The following are the main stakeholders, communication channels and their main topics of
concern:
Stakeholders Major communication channels Main topics of concern
Shareholders' meeting Business status and information
Shareholders and Board meeting on significant matters
creditors Investor communication Survey on the fulfillment of
meeting and letter survey corporate social responsibility
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Bondholder meeting
Corporate development strategy
and supply chain capabilities
Client satisfaction survey
Compliance
Clients Client visit
Employee health and safety
Special seminar
Green products
Product safety
Corporate development strategy,
Employee satisfaction survey and mid- and long-term planning
Employee reception day Employee compensation and
Employees Employee proposal system benefits
Employee seminar Employee training and
Suggestion box development
Employee health and safety
Fair procurement, integrity and
honesty
Supplier conference
Fulfillment of social
Suppliers Supplier review
responsibility commitments
Special seminar
Green products
Product safety
Science and technology
Universities and Academic cooperation innovation
research institutes Seminar Intellectual property rights
Talent cultivation
Compliance
Work meeting Corporate development strategy
Government Work report Corporate governance
Work inspection Job and employment
Taxation compliance
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Product quality
Environmental protection and
occupational safety
Special interview Corporate development strategy
Media
Information disclosure Corporate governance
Public welfare activity Community progress and
Forum development
Communities
Participation in community Environmental protection
projects Public welfare activity
2. Technological Innovation and Service
2.1. Technological Innovation Input
2.1.1. Innovation Culture
"Cultivation and ingenuity, constant improvement" is Goertek's unremitting pursuit. Goertek
actively implements the core value of "employee development", and encourages technological
innovation, placing great emphasis on technical research and craftsmanship. By establishing a
refined and diversified career development path for R&D engineers, the Company continuously
improves the professional skills and innovation ability of R&D engineers through job
qualification requirements and a perfect training system and resources. Meanwhile, it clearly
defines technological innovation achievements as a key criterion for employment and promotion,
effectively stimulating the growth potential and innovation vitality of R&D engineers, and
helping R&D engineers to continuously attain professional achievement and grow together with
the Company.
2.1.2. Gathering Talents
Talent is the top resource for corporate development. In recent years, the Company has firmly
adhered to the strategy of strengthening the Company by introducing, nurturing and employing
talents, continuously optimizing the environment for talent development, and promoting the
integration of the "talent chain" with the "industry chain" and "innovation chain", which has
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provided solid intellectual support for the Company to become one of the top 500 enterprises in
China and the only enterprise in China to rank among the global top 10 in the field of MEMS.
Goertek insists on developing global channels to attract and recruit all types of domestic and
international talents. With regard to attracting talents, Goertek has perfected its talent
introduction mechanism, with the Chairman taking the lead as the "talent introduction specialist".
Relying on its HR department, the Company has appointed "talent liaison officers" to ensure a
full chain of talent contact services. Its talent introduction plan is also implemented by category
according to the characteristics of talents at different levels. In addition, the Company has
innovated the talent introduction mode and set up R&D centers targeting the frontiers of the
world's scientific and technological innovation to attract world-class high-end technical talents
locally. Besides, a platform for talent introduction has been established. Goertek has jointly
established the research institute with the government and universities. In 2021, the Company
was recognized as the outstanding municipal sci-tech innovation platform for introducing and
nurturing talents, and the excellent provincial new R&D institution.
Goertek actively builds a platform for talent development, and formulates differentiated
development channels for new talents, and helps them draw up career development plans,
thereby boosting the integration of talent value and career development. R&D platforms give
full play to the "innovation ability" of talents. Goertek has approved 8 national and provincial
innovation platforms, and jointly established the research institute with many well-known
universities. Financial support has been granted to the scientific research projects carried out by
talents relying on the platforms and institutes, and over 50 scientific research achievements have
been industrialized successfully. A number of awards have been obtained, including the national
champion of manufacturing, the fourth China Quality Award, and the first prize of the 6th
Mayor's Cup Industrial Design Competition. Through projects, talents are trained to command
stronger "breakthrough capacity". With a focus on 5G, AI and IoT technologies, the Company
encourages all types of talents to build teams for independent innovation and problem solving,
thus creating a "high-grade, precision and advanced" talent team. The Company has also joined
hands with universities to shape the "competence" of talents. Exchange training programs are
carried out jointly with top universities and research institutes at home and abroad, including the
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"joint training base for graduate students in industry-education integration" with Shandong
University, and the "excellent engineer class" for undergraduate students with the School of
Opto-electronic Engineering at Changchun University of Science and Technology. Besides, a
"new model" for skill cultivation has been developed, with the establishment of a three-level
education and training system comprised of the Goertek College, workshop training and online
classes. Expert lectures and technical trainings are held regularly. In addition, a "2+1+1" training
model for undergraduate manufacturing engineers has been proposed.
With heartfelt affection for talents, Goertek strives to create an "excellent ecology" for talent
retention with the help of distinct positive incentives. With the launch of the talent performance
improvement campaign, the Company has been honoring employees' compensation according
to their work performance. Some outstanding talents have their compensation doubled. Efforts
have been made to create a favorable environment for employees in terms of training, housing
subsidies, medical care, medals for seniority, employee hotlines, and loving assistance, so as to
retain talents with satisfactory compensation, promising career development, and earnest
affection.
2.1.3. Innovation Mechanism and Investment
As an innovative high-tech company with global presence, Goertek attaches great importance to
its R&D investment and technological innovation. In order to promote technological competence,
facilitate technological innovation and strengthen R&D capabilities, the Company has
established its Technology Committee, with seven specialized technology sub-committees that
are responsible for the enhancement of technological competence in each professional field. We
have carried out the construction of Integrated Product Development (IPD) system in phases,
and established a cross-discipline core team in the field of product development as well as
strengthening the Decision Check Point (DCP) based on the comparison with industry
benchmarks and our actual business, thus accumulating the best practices in the industry. The
representatives of each field are responsible for the quality planning, acceptance and
improvement in their own field. By minimizing the possible risks in the product design process,
improving the market awareness of R&D personnel, and enhancing their foresight, we are able
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to maximize corporate profits.
Over the past five years, the Company has invested a total of over RMB 13 billion in R&D. Its
R&D investment in 2021 totaled over RMB 4.3 billion, accounting for 5.50% of its operating
income. The central research institute and system solution center have been established at the
corporate level and business group level. With Weifang and Qingdao centers as the core,
supplemented by Shenzhen and Dongguan centers, a global R&D model of "double core + multi-
location synergy" is created to stay close to forefront of technical talents, plan on promoting new
technology research, and reserve technology and talents for the future development of the
Company. Meanwhile, by closely following the frontiers of technological innovation, identifying
potential opportunities of technology, and monitoring the technology trends in real time, we are
able to steer the direction for the technology development of the Company. Our continuous
increase in R&D investment has further enhanced the competence of our product solutions in
the global market.
2.2. Promotion of Green Products
Goertek has always been committed to using safer materials to produce safer products. Our
policy for the management of hazardous substances is "Complying with laws and regulations,
promoting green manufacturing, providing environmentally friendly products, and satisfying
clients' needs". The Company has established a professional team for green product management,
thus gaining recognition from well-known clients in the industry. With great importance attached
to environmental compliance, the green product management division has been under the direct
supervision of the Company. In 2021, Goertek made numerous breakthroughs in its green
product management, especially in term of raising the awareness of all employees on
environmental compliance, the effective operation of the hazardous substances process
management system, the comprehensive IT-based operation of the Company's environmental
compliance data, and the interpretation and response to the latest dynamics of regulations and
client requirement.
In 2021, we inquired a total of 95 green product-related regulations and interpreted the updated
hazardous substance specification of 8 key clients to effectively identify and ensure the
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continuous compliance of our products. The Interpretation of Hazardous Substances
Regulations for Electrical and Electronic Products was released for the first time in January as
a monthly newsletter, totaling 12 issues. Study sessions were organized among all employees to
facilitate learning of product environmental regulations. In July, the Company launched an
online course on knowledge of environmental regulations, enabling online induction training for
new employees. In November, when the pandemic situation was severe, the Company actively
cooperated with third-parties, and implemented online environmental compliance training for
suppliers for the first time, which effectively raised the environmental awareness of all
employees and suppliers.
In 2021, Goertek successfully passed the IECQ QC080000 system certification renewal audit,
and also gained certifications for seven new product ranges. Our hazardous substances process
management system was running effectively, with positive recognition from clients.
The Company continues its vigorous efforts to optimize the IT-based management of data. By
the end of 2021, all environmental compliance data of suppliers had been uploaded onto the
Company's Supplier Collaboration System, enabling full IT-based management.
In addition, the Company adequately owns 15 sets of XRF testing equipment, and a high-end
chemical testing laboratory. Equipped with ICP-OES, GC-MS, IC, UV-Vis and other testing
equipment, the laboratory passed the accreditation of China National Accreditation Service for
Conformity Assessment in 2010 and obtained ISO/IEC 17025 laboratory qualification
(certificate number: CNAS L4750). It passed the renewal re-accreditation in 2016 and the
expansion re-accreditation in 2020, making its accreditation continuously valid.
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3. Employee Care
People create the corporate value. Human resources is Goertek's key resources and fundamental
components of Goertek's core competitiveness. On top of complying with laws and regulations
and the Code of Conduct of the Responsible Business Alliance (RBA), Goertek further advocates
the cultural slogan of "We make, we share, we thrive", committed to creating a safe and
comfortable working and living environment for its employees, protecting their legitimate rights
and interests, and caring for their welfare and career development. Goertek listens to employees'
voices through various employee communication channels and, based on their feedback, tailors
its compensation and benefits policies and improves its management system. In addition, the
Company implements a "first-class talent" strategy, and builds multiple career training platforms
and promotion channels to facilitate the training and development of human resources and
achieve all-round care for employees in work and life, thereby achieving common growth with
them.
The total number of Goertek employees was 95,780 in 2021, serving in different businesses of
Goertek, as detailed below:
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Employee Composition
Position category The number of people in each section
Production person 69,815
Sales person 670
Technical person 19,753
Financial person 306
Administrative person 5,236
Total 95,780
Education background
Education background category The number of people
Doctor 78
Master 3,435
Bachelor 16,170
Junior college 18,823
Below junior college 57,274
Total 95,780
3.1. Respect for Employees and Protection of their Legal Rights and Interests According
to Law
Goertek pursues the culture concept of "We make, we share, we thrive" and fully respects each
and every employee. The Company fully implements the Labor Law of the People's Republic of
China, the Labor Contract Law of the People's Republic of China, and the Social Insurance Law
of the People's Republic of China, among other relevant laws and regulations, and has
established corresponding management rules and regulations to ensure that all discrimination in
relation to race, color, age, gender, sexual orientation, disability, pregnancy, religious belief,
political affiliation, geography, association membership or marital status, and other factors that
generate discrimination are prohibited in the recruitment, employment, training, promotion,
compensation and benefits. The Company enters into labor contracts with its employees on the
basis of equality, voluntariness, consensus, honesty and credibility in accordance with laws, and
fully fulfills its labor contract obligations. In the context of the normalization of pandemic
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prevention and control, the Company has innovated a new model of "Internet + labor contract"
and launched a nationwide electronic labor contract signing system to improve employees'
experience, effectively protect their legitimate rights, and realize the unity of employee value,
company value and social value.
We conduct employee management in compliance with laws and regulations, and strictly enforce
the compensation standards as required by the government. Forced labor is strictly prohibited,
and the three measures of process and system, training and communication, and supervision and
inspection are applied to avoid forced labor, harassment and abuse, so that employees' freedom
of employment is respected and modern slavery is eliminated. In addition, the Company
explicitly prohibits the employment of child labor in its recruitment system and adopts the "five-
step method" of identity confirmation at interviews to ensure that employees' identities are real
and valid, so as to avoid child laborers from mistakenly joining the Company. Also, the Company
has formulated remedial measures for child laborers to effectively implement its child labor
protection obligations.
Special employees are treated with great care in Goertek. In accordance with the Employment
Promotion Law of the People's Republic of China and the Law of the People's Republic of China
on the Protection of Disabled Persons, the Company respects equal employment opportunities
for special groups such as disabled persons and guarantees fair and just treatment in terms of
labor protection and job adjustment. Meanwhile, according to the Law of the People's Republic
of China on the Protection of Women's Rights and Interests and the Special Rules on the Labor
Protection of Female Employees, the Company strictly protects the legitimate rights and interests
of female employees during the "three periods", namely pregnancy, maternity leave and nursing
period, and reduces the workload of pregnant female employees who are unable to take up their
previous work or assigns them to other work that they can adapt to.
The protection of employees' legitimate rights and interests has further strengthened the cohesion
of the Company, creating a multi-win pattern of harmonious labor relations.
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3.2. Compensation and Benefits
Goertek practices the culture concept of "We make, we share, we thrive". In 2021, the Company
continued to emphasize the attraction, motivation and retention of talents, and implemented a
competitive and high-performing compensation incentive policy and benefits care. Through
optimizing the distribution mechanism, employees could share the growth of corporate
profitability.
Despite the challenges of the pandemic and the unfavorable economic environment in 2021, the
Company still insisted on its annual compensation review and adjustment, resulting in
continuous and stable growth of employees' incomes. For core positions, key groups and high-
end talents that support the strategic new business development of the Company, a special
compensation adjustment policy has been implemented to effectively achieve the precision talent
attraction and retention. To further reserve talents for the sustainable and sound development of
the Company, the compensation level of fresh graduates has been continuously and vigorously
raised, and a "moat" special retention incentive has been offered to the identified outstanding
university students.
In addition to providing competitive compensation, the Company has been providing stock and
option incentive plans for its core employees, so that more and more core employees can share
the value growth of the Company. The number of stockholders has further increased in recent
years through the continuous innovation of the equity incentive mechanism. Benefiting from the
continuous rise of the Company's share price in recent years, employees have enjoyed a steady
increase in their annual exercise proceeds, and long-term incentives have become a key way to
attract, retain and motivate employees to make joint efforts to boost company growth.
The compensation of directors and supervisors of the Company is proposed by the Compensation
and Appraisal Committee of the Board of Directors. After review and approval by the Board of
Directors, it shall be submitted to the Shareholders' Meeting of the Company for approval before
implementation. The compensation standards of senior management shall be proposed by the
Compensation and Appraisal Committee, and implemented after deliberation by the Board of
Directors. In addition, allowances for independent directors shall be paid on a regular basis.
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In addition, Goertek is committed to building a diversified welfare system with its own
characteristics. Free physical examination, accommodation, shuttle bus and tailored transit are
provided to all employees; the 1st, 3rd and 5th anniversary and 10-year and 20-year loyalty and
diligence exclusive activities are carried out for employees; colorful employee activities, such
as Cultural Street of Mid-Autumn Festival, mass wedding and employee family days are held;
the Employee Assistance Program (EAP), legal aid, family+mutual aid fund, and 99 public
welfare days are offered to employees and their families, aiming to bring happiness to employees
in all aspects and enhance their welfare satisfaction.
To foster employees' diversified interests and create a healthy living climate, each industrial park
in Weifang is equipped with a variety of leisure and entertainment facilities, including outdoor
soccer fields, basketball courts, running tracks, and fitness areas, as well as staff activity centers
with standardized indoor facilities (table tennis, badminton, billiards, fitness facilities, staff
library, dance/yoga rooms, consultation rooms, and club rooms). Moreover, 12 interest clubs
have been established based on employees' interests, which include the empowerment and
enhancement clubs, namely, the photography club, the reading club and the calligraphy and
painting club, the sports and fitness clubs, namely, the basketball club, the soccer club, the
badminton club, the table tennis club, the cycling association and the yoga club, and the quality
of life clubs, namely, the matchmaker club, the singing and dancing club and the traveling club.
Based on these clubs and corporate culture, the Company held a number of cultural activities in
2021, including Spring Festival couplet writing with blessings, Lantern Festival, mass wedding,
youth bonding, basketball tournament, Cultural Street of Mid-Autumn Festival, New Year's
shopping Festival, ping pong and badminton league, and cycling, which greatly enriched the
spare-time cultural life of employees.
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Besides the physical health, the mental health of its employees is also of great concern to the
Company. To care for employees' mental health and strengthen the humanistic care for them, the
Labor Union, together with the Human Resources Department and the Employee Management
Department, launched multifaceted explorations on how to enhance employees' happiness in
October 2020. After enterprise benchmarking, the EAP project was officially initiated in May
2021 under the guidance of professional consulting organizations. A special EAP project team
was set up to carry out EAP services comprehensively. By the end of 2021, the EAP program
had been running for half a year, with six service projects carried out altogether, including 7*24
hotline for psychological counseling, training of corporate mental health managers, holistic
health counseling, mental health assessment, training for new employees known as "Goertek
Wings", and crisis intervention and management. In the coming years, we will also carry out
EAP-themed training and empowerment program for different groups, so that EAP services can
benefit more people and truly achieve maximum value.
Employees may inevitably encounter legal disputes and traps in their life and work, which can
cause various troubles. We aim to provide better legal services to employees and meet their needs
for legal support, as well as to further educate employees on legal knowledge, so that they can
truly enjoy the legal services at their doorstep. Starting from 2020, the Labor Union has joined
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hands with the Legal and Intellectual Property Management Department of the Company to
launch the Legal Service Day. In 2021, our legal service team continued to grow, with more than
10 legal experts in handling cases. In respect of civil and criminal services, the coverage was
expanded from two parks, namely, Weifang Electroacoustic Park and Photoelectric Park, to the
R&D building in Qingdao. On the Legal Service Day, two to three legal experts will be available
in each industrial park to provide one-on-one legal consultation, offering professional and
detailed legal advice to our employees. Over 240 cases of legal consultation were received in
2021, with the main topics of consultation being real estate disputes, marriage and family affairs,
personal loans and traffic accident disputes. Experts will provide continuous legal services
according to the actual situation of each employee. After two years of development, the Legal
Service Day has successfully set up a bridge between the Company and its employees, not only
helping employees to solve difficult legal disputes, but also educating them on common legal
knowledge and promoting the sound culture of "knowing the law, understanding the law and
abiding by the law" within the Company. As the legal awareness of employees continues to rise
over time, the demand for legal advice will increase as well. The Legal Service Day will continue
to follow the needs of employees, exert greater value and fulfill its role as a "legal back-up" for
employees.
In addition, the Company has built a platform offering universal benefit, "Goertek Welfare Mall",
by integrating internal and external resources, and regularly organizes group purchase activities
for leisure and entertainment, life services, daily necessities, internal purchase of electronics and
holiday stuff, so that employees can truly enjoy the benefits and convenience. In 2021, 26 group
purchase activities were conducted, with 700,000+ views, 100,000+ visitors to the mall, 35
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newly introduced partners, and 20,000+ participants, saving a total of more than 1.8 million
RMB for employees. These activities, such as themed group purchase activities for traditional
and electric vehicles, home appliances, Mid-Autumn Festival & Chinese New Year festival items,
were highly popular among employees.
In order to get employees fully involved in the brand growth of Goertek, the mascot of Goertek
— Goerboy — was launched and its image was upgraded in 2021, reaping the love of many
employees quickly with its three-dimensional image. Its lively and lovely image of intelligent
robotic doll has deepened the emotional bond between Goertek and its employees. With the
mascot as the spokesperson, a creative call for brand enhancement has been launched. Moreover,
through such forms as Goerboy's online science education videos, employees are able to promote
their professional knowledge reserves. A variety of new peripheral products have been created
modeling the mascot, such as dolls, dazzling laser bags, cartoon canvas bag sets, multifunctional
cartoon card holders, metal keychains, cartoon balloons of Goerboy, refrigerator sticker sets,
mugs, notebooks, emoji, calendars, and stickers, gaining great popularity among employees.
Goerboy appeared in scenarios such as Goertek's 20th anniversary celebration, Goertek Sports
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Meeting, Goertek mass wedding, Loyalty and Diligence Award Ceremony, Goertek Cultural
Street of Mid-Autumn Festival, and all-media communication platforms, thus enabling
employees to perceive a real connection with the mascot and experience Goertek's warmth, and
thus enhancing their sense of belonging.
In 2021, the Labor Union of our Vietnam subsidiary also organized a number of significant
activities aiming to improve the welfare of employees. For example, gifts were provided to
employees on International and Vietnamese Women's Day, Mid-Autumn Festival, Vietnam
Liberation Day, International Labor Day and other such holidays; during the Chinese New Year,
in addition to gifts for employees, a special bus was arranged to ensure that employees got home
safely for the holiday; monthly birthday parties were hosted for all employees, with special
birthday gifts prepared. Besides, lucky draws were arranged during the festival and annual
meetings of the Vietnam subsidiary, and gifts were presented to those lucky ones. In order to
recognize and encourage employees with significant contributions in their work, and to inspire
their work enthusiasm, the Vietnamese subsidiary organized a Commendation Conference for
Outstanding Employees in 2021. During the Conference, the outstanding employees were highly
recognized for their dedication and efforts. The Company expected that they could maintain their
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excellent characters, continuously improve their skills and professionalism in their work, and
serve as benchmarks for more employees to learn from.
In the process of production management, employees' health is also a concern of the Vietnamese
subsidiary. It organized various sports activities for employees in 2021, such as shuttlecock
competition and soccer match. In order to appreciate and encourage employees' contribution to
the company, warm greetings and gifts were also given to employees with 5 years of service;
furthermore, after learning that the roads posed difficulties to employees' daily commute, the
subsidiary and its labor union made timely funding for road renovation to ensure employees'
safety and convenience in their commute.
In the meantime, Vietnam still faced grim pandemic
conditions in 2021. Under this circumstance, the
subsidiary continued to give top priority to protecting
the rights and interests of its employees. To protect the
safety of employees, the subsidiary set up a Pandemic
Containment Command Center, and formulated various
pandemic prevention measures and instructed
employees to comply with them. Confirmed employees were sent to hospitals for treatment
promptly, and each confirmed employee received a condolence allowance from the labor union
in addition to his/her salary.
3.3. Career Development and Growth of Employees
As talent is the core competence of a company, Goertek attaches great importance to the growth
and development of its employees. In 2021, the Company continued to carry out human
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resources transformation projects, and established a special project for accelerated cultivation of
talents for transformation, focusing on business needs, cultivation of talents in each tier, exerting
the driving forces of culture, mechanism and policy, and continuously improving the career
development channels for employees. Various learning, training and improvement channels were
constructed for employees, and a sound learning system for employees was set up to develop the
career development opportunities of employees. In 2021, the Company's investment in training
increased by 52% year-on-year. The HR Department works with all business departments to
carry out training programs for leaders, new employees, specialized talents, technical talents,
and front-line employees, so as to help them keep learning and growing, and better realize their
personal value and professional achievement. Through constant improvement of the business
training mechanism, a pool of talent resources is established to supply a steady chain of talent
output for the Company according to business needs.
In 2021, the Company continued to implement a comprehensive and multi-disciplinary talent
training strategy to fully inspire its organizational energy. The HR Headquarters is continuously
upgrading training programs by coordinating the work among platforms of each specialized line.
As a result, these specialized talent training programs have become increasingly well established.
By continuously empowering specialized talents (via special training in finance and economics,
quality, lean management, supply chain, and HR), the business foundation is continuously
consolidated and the competence of each specialized list of talents is soundly improved.
The Company has been continuously upgrading its new employee training system, with new
employee training programs for campus recruitment (the "Goertek Wings" program and "Wings
2000" program) and for social recruitment (HUG training), so as to facilitate the rapid integration
of new employees, improve their professional capabilities comprehensively, and boost their
steady growth. In 2021, the Company focused on the retention and development of employees
in the Goertek Wings program, in order to facilitate their adaptation to and integration into the
Company. Through the establishment of a Company-level project targeting employees in the
Goertek Wings program, the HR department joins hands with business departments to manage
the entire process from precise recruitment, training and development, to compensation and
incentive, and care and retention, clarifying the career paths and various guarantee policies for
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the development of employees in the Goertek Wings program, enhancing employees' trust in and
loyalty to the Company, and propelling common growth of both employees and the Company.
Meanwhile, the HR department undertakes the senior-level employee training of the Company,
and continues to strengthen the enforcement of senior-level employee standards and senior-level
employee monitoring. Through the G-Plan and M-series training programs, the goals of
identifying and training senior-level employees with great potential, enhancing and putting their
abilities into use, and improving their ethics, so as to continuously produce and competent
senior-level employees with good character for the Company.
The key to the progress and development of a company lies in its talents. In order to strengthen
the Company's core competencies, build a learning organization and refine the construction of a
talent pipeline, the HR department took the lead in 2021, in collaboration with all business
groups, to systematically upgrade the Company's training operations, sort out lecturers, courses
and resources, and focus on improving lecturers' professionalism and enhancing their sense of
honor, while emphasizing the quality of courses and setting course levels and standards. In 2021,
a total of 545 lecturers were certified, all of whom went through the TTT training to improve
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their professionalism and effectiveness of their lecturing. 404 courses were developed in 2021,
17 of which were rated as excellent courses and 81 of which were company-level quality courses
developed based on business needs. At all levels of the Company, talent cultivation is vigorously
promoted in support of the Company's strategy. The Company's senior management played a
leading role in offering lectures, registering a total of 6,923 lecturing hours, 27.4 lecturing hours
per capita, and an 87% increase in the frequency of lecturing. All employees receive training,
with 45.8 hours of training per capita.
To train primary-level managers and technical talents more effectively, and promote the
sustainability of manufacturing manpower, Goertek gave full play to its role as an innovative
entity in 2021, and carried out a series of cultivation and training activities related to
manufacturing manpower, forming a unique mechanism for selecting, nurturing, employing and
retaining talents, so that primary-level managers and technical talents can keep up with the
development of this industry.
For the employed manufacturing manpower, the Company continues to empower and optimize
the manufacturing manpower structure by opening up the promotion path for primary-level
managers, adjusting the remuneration structure and conducting a review of the entire
manufacturing manpower. In 2021, the Company continued to train shift leaders and rate them
with stars. 1,373 shift leaders participated in the training. Moreover, instructors were appointed
in business units for the first time to take charge of the training of primary-level managers, with
74 individuals having completed the training and 23 having passed the evaluation so far. To
further enhance the stability of primary-level managers while continuously improving their
capabilities, the Company further optimized the promotion paths for these managers in 2021 by
upgrading the 5-level hierarchy to a 7-level hierarchy, so that it is possible for primary-level
managers to be promoted to ministerial-level managers.
As the manufacturing mode upgrades, requirements for technical talents are getting increasingly
higher. In 2021, the Company continued to put effort into building a great team of technical
talents, clarifying the positioning of craftsmen and improved the career path for them. 195
craftsmen passed the evaluation, while 471 were trained under a. novel enterprise apprenticeship
system jointly carried out with universities. The Company conducted internal empowerment
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training for craftsmen, training camps for inexperienced craftsmen and training camps for skill
development. Moreover, a systematic review was conducted for the technical talents in the
Company, who were divided into 11 groups based on their technical specializations, with their
job posts and specific requirements clarified. Meanwhile, the Company further benchmarked its
skill level settings against those adopted by other enterprises, and continued to carry out
independent evaluation, with a total of 2,558 employees evaluated in 2021. This further
strengthened the efficiency of the occupational skill levels set for evaluating the Company's
technical talents.
In 2021, the Company continued to improve the quality and quantity of training for preparatory
primary-level managers and technical talents, with strengthened joint training of craftsmen class
between Goertek's Craftsman Training Center and various colleges and universities. 215
craftsmen/technicians were trained in 2021, 84% of whom were qualified by skill recognition,
receiving the same pay level as an average graduate with a bachelor's degree. The training has
been strengthened continuously to enhance front-line management ability. In 2021, 507 new
front-line shift leaders were trained, and 470 employed shift leaders received rotational training.
The management ability of these front-line shift leaders was systematically enhanced through
theory learning and practicing. In 2021, the Company continued to explore the university-
enterprise cooperation mode. On the basis of the "1+1+1" craftsman/technician class model,
Goertek built a modern industrial college many universities and conducted training for the first
batch of 112 undergraduates. Through the systematic training on manufacturing technology,
process, mold, workflow, quality, and corporate culture, students are able to master the
knowledge and capabilities required by enterprises while further deepening their understanding
of employment and career choice. The Company was jointly recognized by the National
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Development and Reform Commission and the Ministry of Education in June as one of the first
batch of state-level industry-education integration enterprises integrating production and
education; in December, it was recognized by the Department of Industry and Information
Technology of Shandong Province as a public training base (demo category) for the new-
generation highly skilled personnel in information technology.
In 2021, oriented toward employee growth, the Vietnam subsidiary vigorously promoted the
talent localization training program, with a focus on senior-level employees and employees in
the Goertek Wings program, so as to orderly construct a localized talent pipeline.
Despite the impact of the pandemic, various training programs were carried out in an orderly
manner. In 2021, a new plan was made for the senior-level employee training system of the
Vietnamese subsidiary, with upgraded internal and external resources, regulated operation and
implementation, and standardized processes. A total of five senior-level employee training
classes were set up, covering 306 people, including 231 Vietnamese nationals, with an
accumulative 300 hours of lectures. As a strategic reserve of talents for the Company's future
rapid development, an end-to-end management system for the Goertek Wings was established
in early 2021. For the Goertek Wings candidates of previous years, a series of training and
employee care activities were carried out by coordinating the efforts of various business groups;
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and for the Goertek Wings candidates of the present year, a comprehensively upgraded induction
training camp was held, training 154 people. Through good management of the all-round entire-
process training, a localized management ecology for the Goertek Wings initially took shape.
In 2021, with continued adherence to the Company's strategic direction and focus on
business development needs, the Goertek subsidiary in South China remained dedicated to the
training of talents in each tier and development of a learning organization. In particular, the South
China subsidiary empowered its team through a variety of senior-level employee training and
front-line management improvement courses, which enhanced the management ability of the
senior-level employee team and effectively stimulated their vitality. By optimizing the content
and operation form of HUG training courses, new employees had better induction experience
and integrate faster. English language courses were developed to improve the English of the
business teams and thus enable them to serve clients more efficiently. The in-service growth
program for the Goertek Wings candidates was developed and implemented, to facilitate the skill
improvement of fresh graduates while they work and to quickly make them feel a sense of value.
The Learning Together Day (LTD) program organized weekly learning on specific topics. Its
rich content and flexible lectures won wide popularity among the employees of the South China
subsidiary, and at the same time, everyone in the organization was encouraged to pursue personal
development. As more people were engaged in learning, people are more convinced by the
power of learning income growth. Through the project of "Gathering Teachers for Extensive
Education", internal lecturers of the South China subsidiary were selected and trained; this
project also became a booster for corporate culture inheritance of the Company and skill
improvement of the employees. In 2021, the South China subsidiary independently developed
and introduced 42 excellent courses, organized 36 public courses at Company level, and trained
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28 internal lecturers. The internal training covered 83.1% of senior-level employees; the number
of voluntary participants grew by 211%; the per capita offline learning hours grew by 750%; and
the average satisfaction of participants scored 4.91 (out of 5).
3.4. Employee Engagement and Communication
In order to more widely and timely receive the suggestions and opinions of employees and more
effectively solve their problems, Goertek continued to strengthen the function of its Labor Union
in 2021 and set up a professional team to systematically manage issues such as employee care,
employee rights protection, assistance for those in need, convenient facilities, inclusive services
and cultural and sports activities. In July, the Weifang Campus of the Company held the Fourth
Employees' Congress, which was attended by the leaders including the Secretary Chief of the
High-tech Zone, the Head of the HR department, the chairmen of all functional departments and
business groups as well as employee representatives, with a total of more than 200 participants.
The Congress heard the reports on the work of the Labor Union, the Funds Review Committee,
human resources, administration and work safety in recent years, elected the members of the
Fourth Labor Union Committee, the Chairman and the Vice Chairman of the Labor Union, the
members and the Director of the Funds Review Committee and the members and the Director of
the Female Workers Committee, and deliberated on the member composition of the Labor
Dispute Mediation Committee. Moreover, 12 rules and regulations were deliberated and
approved by the Congress, including the code of conduct for employees, leave management, and
the reward and punishment mechanism, to continuously improve the capacity of employees'
democratic engagement and give full play to the Employees' Congress.
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The Labor Union has set up communication and feedback platforms such as the Labor Union
Service Hotline, the Labor Union Email, the "Goertek Staff Home" official WeChat account, and
satisfaction surveys, so as to hear the demands of employees and solve their pressing concerns
in a timely manner, thus creating a harmonious labor relationship and forming a community of
shared destiny between employees and the Company. In 2021, the Labor Union received 2,630
messages of feedback from employees through various channels such as WeChat, email and
hotline, with a 100% closure rate. Timely and effective assistance was provided to employees in
solving or responding to various problems they encountered, so that employees could truly "turn
to the Labor Union whenever in need".
In addition, an internal supervisory organization has been established, with standardized internal
complaint and appeal channels and handling mechanisms, maintaining strict confidentiality and
protection measures for complainants and petitioners, and prohibiting any form of retaliation.
Employees can complain about any problems, and the internal supervisory organization assists
employees in solving problems through such ways as visits, investigations and employee talks.
The year 2021 marks the 20th anniversary of Goertek. The employees jointly composed a theme
song for the 20th anniversary - "Together", with more than 300 employees contributing their
ideas. The youthful and vigorous sound covered every corner of the Company's departments and
campus, and its vibrant music video has also swept across the employees' WeChat Moments.
The theme song was also well received by platform users after being released on QQ Music,
Netease Cloud Music and WeSing. At the same time, the Company carried out multiple creative
activities for the 20th anniversary on the TikTok App, with a total of more than 2 million views
on the topics, receiving enthusiastic responses from employees. In the #Shining Goerteker#
activity, employees actively uploaded self-choreographed videos, with over 1,000 employees
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participating in the shooting and interaction, showing their passion for life and work; in the
#Singing Goertek# activity, hundreds of employees participated in the hand-gesture dance and
danced to the theme song, showing their best dance moves. A variety of activities such as WeChat
portrait customization, exclusive blessing poster customization and creative group photo
challenge were launched on WeChat, engaging employees in the bustlw of the Company's
celebration.
In 2021, Goertek created its original workplace gymnastics as part of the Goertek Workplace
Fitness Initiative, and called on all employees to spend five minutes every day on exercise. The
workplace gymnastics comprises six moves to help employees enhance their physical fitness,
exercise their body, and relax their muscles. The activity gave rise to a workout craze among
employees. More than 30 teams from various departments within Goertek were formed to
compete in the workplace gymnastics competition. Over 10,000 people participated in voting
the best-performing team, making workplace gymnastics a featured activity for physical fitness
within the Company.
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In 2021, the TV program "Goertek TV" was officially launched and broadcast in staff cafeterias,
spaces in front of elevators and Goertek's intranet, with six episodes already aired. Goertek TV
focuses on the latest news of the Company and the industry, and activities of various departments.
Employees can also send blessings to their colleagues by ordering songs, which has been well
received by employees once it was launched. Many ordered songs for their colleagues. The
position of "Goertek TV" anchor is held by employees, becoming an opportunity for them to
show their personal charisma. Currently, there are already more than 20 TV anchors.
In 2021, the South China subsidiary set up a jukebox program to enable employees to better
relax themselves and have more pleasant their break from work. 387 songs were ordered
throughout the year, and employees' sense of engagement and sense of ownership within the
Company was strengthened. Birthday parties were held for employees monthly with exclusive
privileges for employees having birthdays. There are games, Karaoke, delicacies and cakes for
the celebration. In traditional festivals such as the Mid-Autumn Festival and the Lantern Festival,
joyful events were prepared to make employees feel the care and love of the Goertek family and
to improve their sense of belonging and happiness.
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In addition, to enrich the leisure life of employees and to keep a good balance between work and
leisure, the South China subsidiary actively carried out various activities, including movie
screening, art performance, dating activity for the single, "GBA three-player basketball match,
flash mob where employees give Chinese New Year blessing in dialects and various team
building activities.
In 2021, the Vietnamese subsidiary continued to strengthen the functions of its Labor Union, and
set up a professional team to systematically manage such affairs as employee care, assistance for
those in need, convenient services, art and sports activities, and medical services. Feedback
channels such as hotlines, emails, satisfaction surveys, employee suggestion boxes and talks
were established by the Labor Union to fully and timely learn about the demands of employees
and address their demands. In 2021, the Union received 83 messages of feedback from
employees, mainly related to cafeterias, parking areas and union benefits, through emails,
hotlines, employee suggestion boxes and face-to-face talks, with a 100% close rate. Through
timely and effectively helping employees solve or answer various problems encountered in their
work and life, the Union set up a bridge of communication with employees, enabling them to
truly enjoy the benefits of "Turning to the Labor Union whenever in need". To make it more
convenient for employees to provide feedback more comprehensively, the Vietnamese
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subsidiary opened an official WeChat account as a new feedback channel for employee
suggestion boxes in 2021, which was used actively by employees.
4. Occupational Health and Safety
The safety management of Goertek is mainly about aspects such as employees' occupational
health and safety, environmental protection and fire safety. Since 2007, the Company has
successfully passed the certification of ISO14001 environmental management systems and
ISO45001 (certified OHSAS18001 by 2019) Occupational Health and Safety Management
Systems by DNV.GL for 15 consecutive years without any serious non-conformity. The
Company conducts internal audits on a rolling basis every year covering the entire business
process of all departments, to continuously improve and optimize the EHS management. The
Company has passed the certification review of Level 2 Safety Production Standardization since
2015 by further strengthening its safety production management. The Safety Management
Committee has been set up with 5 secondary management panels, totaling more than 40
registered safety engineers and about 10 registered fire engineers working together to ensure the
safety of all employees and the surrounding areas.
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4.1. Hazard Identification and Control
The Company actively carries out graded risk control and hidden danger investigation and
management. The construction of the double prevention system has been taken as a key measure
to prevent and resolve major risks in production, with its concept, method and means being
continuously improved and perfected. Through targeted guidance and precise improvement,
various types of supervision functions were coordinated to monitor the fulfillment of
responsibilities and comprehensively improve the prevention and control of production accidents,
so as to boost the steady and sustainable production safety of the Company.
The Company follows the principle of "moderate size, easy classification, independent functions,
convenient management and clear scope". Based on the Hazard Identification and Risk
Management Process and the Operation Guideline for Hazard Identification and Risk
Evaluation, we use the Operation Activity List and the Equipment and Facilities List to
investigate in all aspects and processes, and reasonably classify the risks in the Company that
may lead to accidents, including equipment and facilities (including common facilities shared
by various departments), operation behaviors, environmental conditions and construction sites.
The Job Hazard Analysis (JHA) + Evaluation Record and the Safety Checklist Analysis (SCL) +
Evaluation Record are respectively used for analysis and evaluation. According to the evaluation
results, the level of risks is determined, and the Risk Grading and Control List for Operation
Activities and Risk Grading and Control List for Equipment and Facilities are developed to
clarify the control measures and control levels. As required by the Safety Inspection Management
System, periodic inspection and remediation of risks at sites are conducted to continuously
improve safety management by identifying and addressing problems.
Inspection of chemicals Inspection of limited space
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Nighttime safety inspection Safety inspection of
environmental protection
facilities
4.2. Shaping a Sound Working Environment
4.2.1. Working Environment and Condition Guarantee
The Company provides employees with safe and sound working environment and conditions,
with simultaneous planning and implementation of occupational disease prevention facilities and
safety facilities at the beginning of construction projects. Production equipment is equipped with
safety guards or interlocking devices, and employees engaged in jobs with occupational hazards
are provided with free up-to-par personal protective equipment (PPE). Meanwhile, medical kits
and first-aiders are available on site to provide emergency rescue for employees.
In 2021, we focused on making improvements in terms of apartment safety and security, facility
upgrades and environmental improvement to continuously better the employee accommodation
experience and raise their sense of belonging.
(1) Greater investment in safety
The Company has always attached great importance to the safety of accommodation, with
continuous increase in its investment in apartment safety facilities and intelligence. In 2021, the
Company upgraded the common mesh for all apartment windows to diamond mesh, for greater
safety and security, as well as beauty and uniformity. It spent substantial sums replacing all
traditional mechanical door locks with intelligent ones to ensure safety at employees'
accommodation while making access more convenient for employees. By upgrading the
traditional electricity meters to intelligent ones, the electricity use can be better monitored to
ensure the safety of employees' electricity use. While upgrading the hardware, attention was also
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paid to strengthening safety management. The set-up of safety exits of the apartments complied
with laws and regulations and design specifications, and daily inspections and spot checks were
strictly implemented to ensure that safety exits are available and the escape routes are kept clear.
(2) Upgraded facilities for service improvement
The Company is committed to continuously improving the living conditions of its employees.
With great concern for employees' health, direct-drinking water collection points were set up at
the apartment floors in 2021, with plans to further upgrade the water to mineral water of
recognized brand in 2022, so that employees could enjoy high-quality and safe drinking water.
For historical reasons, some of the apartment buildings were built long time ago, with centralized
bathrooms at their initial planning and construction. After evaluation and validation, the
Company launched an intelligent bath upgrade project to place bathrooms at all floors, making
showering more convenient, efficient and private for employees and thus solving their worries
over showering. Through practical actions, the Company honors its service concept of "serving
with heart and soul, and sharing a warm home", delivering quality services and joy to its
employees.
(3) Environmental beautification and cultural heritage
The Company has made great efforts to improve the accommodation environment of employees.
By cooperating with professional property management companies, the Company has increased
the investment in human and material resources, and continuously improved the standard of
hygiene and cleanliness, so as to create a neat and hygienic apartment environment. Designed
by the Company and participated by employees, an apartment culture wall with Goertek's
characteristics has been created, embellishing the accommodation environment while delighting
the employees. The concept of integrity, pragmatism, and win-win cooperation has been
embedded into the minds of all employees, enhancing their sense of ownership, so that Goertek's
culture takes root in the hearts of every employee.
4.2.2. Solid Promotion of Fire Safety Management
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The Company always adheres to the fire safety management principle of "prevention comes first,
followed by defense and elimination". It conscientiously implements fire safety investigation,
rectification, publicity, training and drill activities, putting fire safety work as the top priority,
while taking various measures to ensure effective implementation of fire safety work.
(1) Clearly define fire protection responsibilities
By improving the grid-like management of fire safety, responsible persons and administrators
for fire safety are assigned at all levels, so as to consolidate the organizational basis of fire safety
management. A graded risk control system is implemented, and daily inspections of high-risk
areas are intensified. Specific persons are designated to take charge of key fire protection areas,
with clearly defined control responsibilities. Voluntary fire brigades of each department are
established and improved, and a monthly centralized training mechanism is implemented to
improve employees' capability of putting out fire in factories at the incipient stage.
(2) Step up the use of an IT-based fire fighting system
The Company has established an intelligent firefighting Internet-of-Things system to realize
24/7 real-time monitoring of firefighting water level, water pressure and residual current of
power distribution cabinets. Flame video detectors are used for video monitoring of fire
information, which can track the area of fire automatically and transmit the live videos to
management personnel, so as to effectively control hidden fire hazards through high-tech means.
(3) Dutifully carry out fire evacuation drills
In 2021, the Company organized more than 190 fire evacuation drills to ensure that all employees
participate in at least one emergency evacuation drill every six months, through which
employees could learn about fire emergency plans, master evacuation and escape skills as well
as the use of fire-fighting equipment, and improve their emergency response capabilities. In May
2021, the Free Trade Zone Management Committee organized fire managers of enterprises under
its jurisdiction to observe and learn from the Company's fire evacuation drills. This shows that
the Company drove the improvement of fire evacuation drills capabilities of neighboring
enterprises.
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(4) Provide proper fire safety education and training
By inviting experts from fire-fighting branches (brigades) to the Company to train safety
management personnel of each department, making posters and billboards, and showing fire
safety films, the Company strictly implements the three-level safety training system and
continuously enhances employees' awareness of fire safety. The Company organized a fire safety
road show in November to promote fire safety knowledge. Besides, the Company continued to
organize fire safety training for all employees, focusing on explaining the Company's fire
management rules, the use of fire-fighting equipment, and fire escape skills, so as to enhance
employees' awareness of fire safety.
4.2.3. Establishment of a Sound Corporate Emergency Rescue System
In order to ensure that the Company can quickly and effectively carry out on-site rescue and deal
with the accident effectively in the event of an emergency, the Company improves emergency
response capability, reduce casualties and property losses, protects the safety of the Company,
society and employees, and safeguards lives and property. The Company has established and
improved its emergency rescue system and emergency response plan. By the extent of the
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damage, the scope of impact, the resources required for emergency disposal and the ability to
deal with emergencies, the Company's emergency response can be divided into three levels:
Level 3 (grassroot team level), Level 2 (corporate level) and Level 1 (society level).
With the principle of "people-oriented and safety first" and "prevention-based, combined with
defense efforts", the Company formulated the Comprehensive Contingency Plans for Work
Safety Incidents in 2021, in accordance with the Production Safety Law of the People's Republic
of China, Regulation on Emergency Responses to Work Safety Accidents, Measures for the
Administration of Contingency Plans for Work Safety Incidents, Guidelines for Enterprises to
Develop Emergency Response Plan for Work Place Accidents (GB/T29639-2020) and other laws,
regulations and standards, and was approved by the President of the Company for release.
In addition to the corporate-level contingency plan, the Company also prepared more than 20
dedicated contingency plans such as Fire Contingency Plan, Chemical Leakage Contingency
Plan and Environmental Pollution Accident Contingency Plan for specific sites, devices or
facilities according to different types of work safety accidents. In addition, more than 10 on-site
handling plans were prepared, including Fire Site Handling Plan, Chemical Leakage Site
Handling Plan, Electrocution Accident Site Handling Plan and Limited Space Accident Site
Handling Plan, clarifying the description of accident risks, emergency work responsibilities,
emergency handling measures and precautions, and prioritizing self-help and mutual help,
information reporting and advance handling.
A sound emergency response organization has been established, with emergency response
groups of two levels, namely, the on-site emergency response group and the corporate emergency
response group. The on-site emergency response group is composed of field personnel from each
region. The specific composition is stated in the On-site Handling Plan of each region. The
corporate emergency response group is composed of the emergency leadership team, emergency
management office and emergency response team. In the meantime, the Emergency Address
Book has been prepared, containing the list of members of each group and their contact
information, so as to quickly get in contact during emergencies with group members.
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4.3. Protection of Employee Safety and Health
4.3.1. Hazard Source Notification
According to the distribution of risk points, the Company has posted risk point distribution maps
at the entrance or prominent position of each building/floor/workshop, provided information on
the main risk points, risk categories, risk levels, control measures and emergency measures
through risk point notification cards, and organized training for employees to ensure that they
understand the basic situation of risk points and master preventive and emergency measures. For
workplaces and jobs that may lead to accidents, alarm devices, on-site emergency equipment
and facilities, evacuation routes, etc. are set up.
4.3.2. Safety and Health Training
Goertek always takes employees' personal safety as a top priority. In 2021, it organized a variety
of safety training and activities to enhance employees' safety awareness and create a safety-
oriented culture. The Company continued to promote the LOPA model management of
hazardous chemical storage areas, and upgraded and optimized the WMS-HXP system to
achieve early warning management of chemical storage quantity and dynamic management of
storage types, thus upgrading the safety management capability and efficiency. In order to
strengthen employees' safety awareness and enhance their safety knowledge and skills, the
Company has been carrying out regular training on injury prevention and creating a strong
safety-oriented atmosphere. Over the years, the Company has been continuously reinforcing the
building of a safety-oriented culture. With the theme of "Fulfilling Safety Duties and Promoting
Safe Development" in 2021, the Safety Production Month and continuous safety improvement
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activities were held. In addition, commercial insurances such as group insurance for personal
accidents, aviation accidents and business travel accidents were purchased for all employees to
protect their lives and properties.
Work safety cartooning activity Emergency experience activity
In order to improve all employees' awareness of safety, enhance their safety knowledge and skills,
and create a strong safety-oriented culture, the Company places emphasis on safety training and
education for all employees. Specifically, such safety training includes regular training, targeted
training, targeted consultation and external training.
For regular training, the Company conducts monthly training themed around safety participated
by relevant personnel within the Company, in addition to the three-level safety education and
various targeted training required by national laws and regulations. The themes carried out in
2021 included traffic safety, holiday safety, special power equipment safety, occupational health,
chemical safety, environmental protection, summer safety, food safety, production equipment
safety, first aid knowledge, fire safety and public security, which improved the safety awareness
and knowledge of relevant personnel, ensured 100% training coverage as required of personnel
whose duties were relevant to safety and health, and achieved positive results.
EHS comprehensive ability Examination on safety knowledge
enhancement training
45
Moreover, special attention has also been given to training of safety management and learning
of safety management rules for safety management personnel. In 2021, the Company organized
special training on safety management, such as safety leadership training for middle and senior
managers, EHS comprehensive ability enhancement training, safety management personnel
rotating training, hazard source identification theory and field practice, compliance evaluation
theory and field practice, and ISO14001 & ISO45001 knowledge training. In addition, young
talents with great potential in safety management of the Company were identified and invited to
participate in the EHS 50 Professional Workshop in 2021, with elaborate professional +
comprehensive course plans to create a training system for EHS 50 trainees through integrating
external teaching resources, targeted development of internal courses, and learning forms of both
lectures and seminars. The various targeted training programs on safety management
participated by a total of over 1,000 safety managers of the Company. Through theoretical
learning plus on-site practice, the professional capability and competence of safety managers
were continuously improved to ensure the long-term and stable development of the Company's
safety management.
Environmental factor
EHS internal reviewer training
identification training
4.3.3. Occupational Health Management
Through workplace occupational hazards testing and occupational health evaluation, the
Company is able to identify posts with occupational hazards, and regularly organize health
checkups for employees in such posts. Moreover, various occupational health protection
measures are taken to minimize the risk of occupational diseases. In terms of occupational health
checkups, the Company has cooperated with hospitals to conduct regular pre-job, on-the-job and
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off-the-job medical checkups for employees in positions with exposure to occupational hazards.
Not a single case of occupational diseases has emerged in the Company so far.
4.4. COVID-19 Pandemic Prevention and Control
Despite the generally stable COVID-19 pandemic situation in 2021, Vietnam still faced a severe
condition, with clusters of associated cases in some parts of the country, and the transmission of
Delta and Omicron variants made the situation worse. Goertek made active arrangements, all-
round deployment and rapid response, and carried out comprehensive prevention and control,
with corresponding measures implemented swiftly.
4.4.1. Organization of Emergency Drills for COVID-19
In order to carry out the COVID-19 prevention and control and standardize the emergency
response, emergency drills of COVID-19 prevention and control were conducted under the
guidance of the government. The drill process was executed in an orderly manner according to
the standardized handling process to ensure safety and efficiency of the drill. The drill teams
made a proper division of duties, performed their respective duties and cooperated with each
other smoothly. The drill significantly strengthened the Company's ability of emergency
handling and teamwork in preventing any clustered outbreak.
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4.4.2. COVID-19 Vaccination
The COVID-19 pandemic is still spreading worldwide and will continue for a relatively long
time. Through vaccination, more people can be immunized and a population immunity barrier
can be formed as early as possible in order to consolidate the hard-earned progress of pandemic
prevention and control. Vaccination against COVID-19 pandemic also stands a good chance of
preventing serious illnesses and deaths caused by COVID-19 infection.
In 2021, the Company's Health Team for Pandemic Prevention contacted medics from various
hospitals and coordinated a total of 208 times of COVID-19 vaccination. The vaccination rate
for the first and second doses was 93.5%, and that for the booster dose was 83%. In 2022, the
booster vaccination will continue to be promoted to achieve a vaccination rate of more than 90%,
thus building up a stronger immunity barrier.
The pandemic rapidly spread in Vietnam in 2021. In order to raise employees' awareness of
pandemic prevention, the Vietnamese subsidiary organized activities to motivate all employees
to fight the pandemic together, praising those working on pandemic prevention, and awarded
those with outstanding contributions to pandemic prevention.
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By the end of 2021, the vaccination rate for both the first and second doses of COVID-19 among
Vietnamese subsidiary employees was 99%, and that for the booster dose was 82%.
4.4.3. Emergency Response
During the Spring Festival, the Company immediately contacted a third-party medical testing
company to formulate a nucleic acid testing plan for employees' return after the Spring Festival
holiday according to the number of people returning to Weifang as reported by each campus,
with 20 nucleic acid testing points set up in each campus to ensure the smooth operation of the
Company after the festival.
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4.4.4. Guaranteed meals and commuting
To avoid packed commuter public transportations at rush hours, staggered work schedules are
arranged for employees, with corresponding flexible shifts, and online meetings recommended.
All vehicles of the Company are disinfected twice before departure and after return, and all key
areas such as the floor, windows, seats, handrails and air-conditioning openings are fully
disinfected, no corners left unattended.
Goertek's staff cafeteria continues to maintain normalized pandemic prevention and control. By
improving its mechanisms and processes, scientific disinfection and protection measures, and
personnel management, the cafeteria ensures zero COVID-19 case and safe meal provision.
After each meal, the staff cafeteria is ventilated and disinfected, and employees must have their
body temperatures taken every day and receive regular nucleic acid testing and health screening;
the control over procurement of ingredients is strengthened, and cold-chain ingredients
periodically go through nucleic acid testing; employees are encouraged to dine at staggered
intervals, and panels are erected on tables to create individual dining spots, so as to ensure the
safety of diners.
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5. Adherence to Green Operation, and Continuous Efficiency Improvement and Emission
Reduction
5.1. Environmental Management
Environmental protection has always been an integral part of Goertek's sustainability strategy.
The Company's work in various aspects such as wastewater, noise, waste, green office, and
greenhouse gas assessment has achieved good results. In recognition of the great significance of
protecting the environment and creating a sustainable society, Goertek has integrated
environmental protection into every aspect of its operations and throughout the life cycle of its
products. According to ISO14001:2015, the Company's environmental management system has
been established and applied to all stages of production, including design, development,
manufacturing, delivery and service of its products. Environmental factors are identified and
evaluated with respect to the life cycle of the products, and corresponding control measures are
formulated for critical environmental factors. No environmental protection-related violations
and related penalties have occurred since the establishment of the Company.
5.2. Pollution Prevention and Control
5.2.1. Wastewater Management
The Company's products are mainly assembled, with no industrial wastewater produced during
the production process. Domestic wastewater mainly comes from drainage of the office
bathrooms, dormitories and staff cafeteria. In 2021, approximately 3,939,000 tons of water was
consumed in each campus of the Company in Weifang, of which the living area of Photoelectric
Campus II was retrofitted with a water reuse system, with an annual recycling water volume of
46,000 tons, used for cleaning and greening in the campus. The wastewater is general domestic
wastewater, uniformly discharged to the municipal pipe network, which complies with the
GB/T31962-2015 Wastewater Quality Standard for Discharge to Municipal Sewers; the
Vietnamese subsidiary complies with the Local National Sewage Discharge Standard
(QCVN40:2011/BTNMT, Grade 1B (COD<150mg/L, SS<100mg/L)).
5.2.2. Waste Gas Management
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The waste gas generated by the Company mainly comes from industrial waste gas in the
production process and cooking fume waste gas from the cafeteria. The industrial waste gas is
purified and treated tom meet the relevant standard through adsorption of activated carbon and
treatment by other facilities, and then discharged through the exhaust duct at high altitude. All
the waste gases discharged meet the Class II standards in Table 2 of the Comprehensive Emission
Standard for Air Pollutants (GB 16297-1996); the Vietnamese subsidiary complies with the
Emission Standard for Organic and Inorganic Waste Gases (QCVN19/2009/BTNMT &
QCVN20/2009/BTNMT).
5.2.3. Noise Management
The major sources of noise in the Company include the operation noise of air conditioning units,
air compressors, cooling towers, fans, pumps and other power equipment. Various measures,
such as equipment renewal, process upgrading and noise source isolation, have been taken to
control noise. According to the monitoring results of the noise within the plant boundary, all the
noise within the plant boundary complies with the Class II standard in Table 1 of the Emission
Standard for Industrial Enterprises Noise at Boundary (GB12348-2008); the Vietnamese
subsidiary complies with the National Emission Standard for Environmental Noise in the country
(QCVN24:2016/BYT).
5.2.4. Waste Treatment
Waste is collected and temporarily stored according to its forms and properties, which is
generally categorized into general waste and hazardous waste. In waste management, the
Company always upholds the principle of "reduction, reuse and recycling", so as to achieve the
integration of waste recycling and corporate social responsibility. General waste is uniformly
contracted to professional recyclers for recycling and treatment, while hazardous waste is
delivered for treatment to organizations with qualifications for hazardous waste treatment
approved by the Environmental Protection Bureau. Waste electronic products are strictly listed
as hazardous waste, and delivered to qualified hazardous waste partners for legal and compliant
treatment in accordance with laws and regulations, in an effort to maximize waste recycling and
resource conservation. In March 2018, the Company began to promote and implement the policy
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advocating zero landfill of waste. By promoting this policy to recycling suppliers, the Company
disposed approximately over 70,000 tons of waste from 2018 to 2021 through means other than
landfill. In 2021, the Company continued to promote this policy, with approximately 20,000 +
tons of waste disposed of by non-landfill means, of which approximately 98% was recycled. The
waste treatment in the Company's Vietnamese subsidiary is in full compliance with the
instructions of the Vietnamese government (ND38/2015/NDCP) and the hazardous waste
treatment is in compliance with the national government standard: QCVN6707:2009.
5.3. Resource Recycling and Climate Change Mitigation
As a major power-consuming enterprise, Goertek is well aware of "limited resources and
unlimited value". The Company's energy management policy featuring "compliant energy use,
efficient emission reduction, full participation and green development" has been implemented
across the Company's product manufacturing chain. With the energy management system as the
basis of scientific management, the Company works to optimize the management organization
across all channels, improve the mechanisms and processes, and implement the management
tools to further explore the potential of energy saving and actively improve the overall energy
efficiency, so as to integrate energy efficiency enhancement, emission reduction and green
development into the internal operation of the Company.
In order to accomplish the strategic goals of the Company on energy, the Company's energy
management work involves a two-pronged approach, covering both management and technology.
The main focus lies on the manufacturing process of products. Starting from the energy used,
the Company insists on developing and promoting the use of clean energy to increase the
proportion of "green energy". Putting clients first, the Company participates in market-based
power trading to satisfy clients' demand for low-carbon production. Digital energy operation is
promoted to identify the sources of carbon emissions and reduce negative impact on the
environment through targeted control, so as to ultimately realize the development of the
Company, enhance energy efficiency, protect environment, and slow down climate change.
5.3.1. Optimize Energy Management Personnel Arrangement and Improve the Assessment
Mechanism
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Goertek has set up a three-tier energy management hierarchy, comprising the Energy
Management Steering Panel, the Energy Management Team and each Energy Management Unit
to ensure accountability. The energy management work is comprehensively consolidated by
refining the energy management functions of relevant departments, improving the Company's
energy management system, tapping deep into the energy-saving potential of each production
scenario, and continuously promoting refined management and control. In 2021, the Company
strengthened the development of the energy management specialization. The Company
improved the capability of energy management personnel by formulating over 30 rules for
energy management and control, holding over 20 training sessions, and conducting quarterly
evaluations, among other measures.
Energy Management Steering Panel
Energy Management Team
Functional Each Energy
Supply Side Demand Side Subsidiaries
Departments Management
Unit
Meanwhile, the Vietnamese subsidiary set up an energy conservation management organization
in 2021, advocating the strengthening of energy-saving efforts such as: paper saving, electricity
conservation, water conservation, and waste recycling. In order to deepen all employees'
understanding of energy conservation, the Vietnamese subsidiary actively promoted these
resource conservation activities through various channels such as email, broadcast, and training.
5.3.2. Promote the Use of Clean Energy to Increase the Percentage of "Green Energy"
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In response to government policies and client requirements, Goertek has introduced distributed
photovoltaic power generation projects and solar collector projects to reduce fossil fuel
consumption and provide effective support for the carbon peak and neutrality goals at this stage.
Distributed photovoltaic power generation: Constantly increase the proportion of clean
electricity, and continuously supply green power. By adopting the contract energy
management model on existing rooftops, the Company has realized a total of 37.8 MWp of
distributed photovoltaic power generation, an annual power generation capacity of 34.31
million kW and an annual emission reduction of about 30,340 t CO2e.
Solar power collector: Solar power collector systems are installed in living areas to heat up
water. As hot water is provided to employees in a natural way without extra heating, natural
gas consumption is reduced. 7 solar collector systems have been installed, with a total
collector capacity of 390 tons and an annual emission reduction of 673 t CO2e.
5.3.3. Actively Carry Out Energy Conservation Technology Improvement and Improve
Energy Efficiency of Equipment
The improvement of the energy efficiency system of equipment allows the Company to not only
reduce greenhouse gas emissions, but also provide one of major way to lower production energy
costs. The Company actively improves energy conservation technology to continuously enhance
energy efficiency of the Company's equipment.
Frequency conversion/maglev energy-saving technology application: The energy station
have adopted Both frequency conversion technology and maglev technology for regulation,
equipped with 8 frequency conversion chillers, 1 maglev chillers, and 7 frequency
conversion air compressors, reducing 8,513t CO2e emissions annually.
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Application of automatic energy conservation system for the chiller: The integrated energy-
saving control system compatible with both strong and weak currents is built for the chiller
in the energy station to monitor various parameters and display equipment status, regulate
automatic operation, enhance energy conservation, interlock various equipment and initiate
automatic protection, measure energy/power consumption, conduct central monitoring and
management, etc. After the implementation of the project, the energy-saving rate has
reached 19.5%, and the annual emission reduction has amounted to 3,435 t CO2e.
Energy recycling: The heat generated during the operation of air compressors is recycled
and used to produce hot water through direct heat exchange or through water source heat
pump units, which is transferred to workshops for production use. A total of 26 waste heat
recovery units have been installed, with recovered thermal power of over 3,360kW and an
annual emission reduction of 1,138 t CO2e.
Application of central vacuum system: Compressed air is one of the main energy source in
production workshops. In view of the waste of compressed air in the process of using
vacuum generators in workshops, the technical modification to replace vacuum generators
with energy-saving central vacuum pumps has achieved the purpose of reducing workshop
noise, improving test performance and reducing power consumption. Currently, 23 screw
vacuum pumps with variable frequency have been installed, with a total power capacity of
374kW and an annual emission reduction of 10,914 t CO2e.
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5.3.4. Promote IT Development and Digitized Energy Operation
Based on the present 18 electric power monitoring systems and dynamic monitoring systems, an
energy management platform has been established to realize functions such as data display,
energy efficiency analysis, data query, real-time monitoring and system management. By
building such a platform, the Company can improve data utilization rate, data accuracy and
delivery timeliness, guide the orderly execution of energy-saving efforts, achieve the purpose of
continuous cost reduction and efficiency enhancement, and realize IT-based energy management.
Energy Multi- Energy KPI Power
Cost sharing Customized Real-time consumption Information WEB O&M
efficiency dimensional efficiency (Single-item
reports monitoring warning transmission
benchmarking analysis analysis power
consumption)
Energy Big-Data
Platform
Weifang Industrial Energy Goertek Information Network
Saving Platform
Power supply and Air compressor system Air conditioning system Boiler system Photovoltaic system
distribution system
5.3.5. Build a Scientific Management System through Energy Management System
Certification
In order to build a long-term energy-saving mechanism and effectively improve the Company's
energy management level, the ISO50001 Energy Management Systems were introduced into the
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Company in 2021. During the system set-up process, processes involved in organizational
responsibilities, energy review, target benchmarking, monitoring and measurement, procurement
and design, publicity and training were sorted out, and based on the actual situation of energy
management of the Company, 5 management systems were established, with over 20 sets of
management templates produced, to guarantee the scientific, systematic and process-oriented
energy management of the Company. The Weifang Park has passed the Energy Management
System Certification. The overall energy management level has been improved and the operation
of energy management systems will be continuously deepened in the future.
5.3.6. Promote Energy-Saving Culture and Raise All Employees' of Energy-Saving
Awareness
Personnel are a weak yet the most vital link in energy conservation. With great attention to the
role played by employees in energy saving, Goertek continues to empower employees with
energy-saving culture in the process of improving its management and organization mechanisms
and upgrading its technologies. In 2021, the Company carried out a number of campaigns and
special inspections to raise employees' awareness of energy saving. For example:
Conserve and cherish water resources: Water resources are the essential material basis for
the survival and development of human beings. Conserving water resources and improving
water use efficiency is not only a long-term solution to guarantee the normal production
and operation of the Company and realize its sound and sustainable development, but also
an inevitable choice for the Company to adapt to the market and improve its
competitiveness. In this regard, a series of activities such as water conservation campaigns,
water conservation quizzes and water conservation proposals were carried out to make us
fully aware of the importance of water conservation efforts, bear in mind the concept of
water conservation and put it into actions, and continuously improve our awareness of water
conservation, so that water conservation becomes a voluntary action and everyone becomes
an advocate, supervisor and practitioner of water conservation.
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Carry out special inspection of air conditioners to reduce indirect carbon emissions: The
electricity consumption of air conditioning continues to rise in the summer with a large
percentage, becoming a major indirect source of carbon emissions. In order to raise the
awareness of energy saving and emission reduction among all employees, improve the
operation efficiency of air conditioning systems, and ensure its scientific, rational, efficient
and sound operation, we conducted special inspections of air conditioning systems in the
Company, starting from four major items and 36 minor items, to improve the energy
management ability of all departments, ensure the efficient operation of air conditioning
systems and reduce carbon emissions through promoting learning and actions through
examinations.
5.3.7. Win the title of the Model Enterprise for the Electricity Demand-Side Management
in the Fifth Batch of the National Industrial Sector
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With high carbon emissions, the power industry is currently an important sector for achieving
carbon emission reduction targets. As the Company consumes a great amount of electricity. In
order to respond positively to the internal and external emission reduction requirements, based
on the systematic management of electricity, the Company adopts the power monitoring system
to realize the balance of supply and demand, thus creating a safe and efficient internal power
system and reducing the power consumption at source. This can further reduce the investment
in new power plants and the pollution of primary energy to the atmosphere, thereby boosting the
achievement of the carbon peak and neutrality goals.
In March 2021, recommended by the local industry and information technology department and
China Electricity Council, and through expert review, on-site assessment, and public
announcement, Goertek was recognized as the Model Enterprise for the Electricity Demand-
Side Management in the Fifth Batch of the National Industrial Sector.
5.3.8. Continuously Promote Green Development
In 2022, the Company will continue to systematically promote efficiency improvement and
emission reduction, step up the implementation of the energy management system, and take
measures to optimize the energy structure and boost energy recycling and reuse, so as to
effectively control carbon emission intensity, slow down carbon emission growth and reduce
greenhouse gas emissions. The work planned to be promoted are as follows:
Further step up the implementation of the
energy management system, with improved
systems and processes, and maintain the
consistency of energy management, sharing
experiences with all subsidiaries at the same
time.
Continue the fourth phase of photovoltaic
distributed power generation project. For
newly-built plants, we will continue to build
photovoltaic power stations to continuously
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reduce the Company's power costs and reduce carbon emissions.
Build high-efficiency server rooms. By configuring high-efficiency equipment, low-
resistance assembly tandem piping and integrated energy-saving control systems for strong
and weak power, build super-efficient server rooms with energy efficiency level ≥6.0.
Promote the application of the energy-saving automatic control system for chillers.
Continue to promote the construction of the energy-saving automatic control system for
chillers so as to realize the intelligent energy-saving control of power equipment and
improve the overall energy efficiency of server rooms.
Boost digitalization in energy management. Continuously improve all kinds of measuring
instruments and upgrade the systems, to accelerate the informatization of energy
management.
Continue to extend the scope of application of central vacuum pumps for product lines to
reduce the number of energy conversions, so as to save electricity and reduce carbon
emissions.
Build green plants. We will adhere to green development and introduce the green concept
throughout the life cycle of production, to build plants with intensified land use, harmless
raw materials, clean production, waste recovery and low carbon energy.
6. Integrity in Business
6.1. Integrity Concept
Goertek upholds an open, honest and transparent business model, and strictly abides by the
information disclosure management rules to protect the rights and interests of its shareholders.
With the people-oriented management philosophy, we effectively safeguard the legitimate rights
and interests of employees, actively advocate the values of trustworthiness and pragmatism,
inspire employees to work enthusiastically, and pursue excellence as a team. Goertek pledges to
comply with all laws and regulations related to Goertek's business such as trade control in China,
international organizations such as the European Union and the United Nations, and other
countries including the United States, to effectively fulfill its export control responsibilities and
61
obligations, to establish an international image of the integrity management and responsible
person, and to win the trust of clients, suppliers and partners.
6.2. Fair Competition
Goertek has formulated relatively complete management regulations and other requirements
management systems, and the bidding and tendering process is fair and just, and the opportunity
to win the bid is equal. Goertek focuses on the intellectual property services and the intellectual
property ecosystem, with dedicated intellectual property personnel and departments, as well as
an intellectual property management system that runs through the entire enterprise chain. To
protect trade secrets, Goertek has established rigorous and considerate technical solutions, with
comprehensive protection measures, to prevent the leakage of trade secrets and effectively
maintain trade secrets.
6.3. Anti-Corruption and Anti-Fraud
Goertek has formulated and strictly implemented systems such as Rewards and Punishments for
Behaviors and Code of Business Conduct. In order to eliminate corruption and fraud, all
employees in management positions of the Company have signed the Integrity Agreement,
committed to the principle of fairness and impartiality in business dealings with all parties, and
ensuring that the interests of all parties shall not suffer due to corruption. An internal supervisory
organization has been set up and a perfect reporting and feedback mechanism has been
established. Internal and external personnel can report cases by email, fax, and telephone, among
other ways, and strict confidentiality and protection measures are in place to ensure that
whistleblowers are not subject to retaliation. For employees who violate the Company's
regulations and relevant national laws and regulations, the Company will deal with them
according to its internal systems and regulations, and meanwhile, will transfer them to judicial
authorities according to national laws and regulations. For suppliers of the Company involved
in bribery, they will be dealt with according to relevant systems and disqualified from
cooperation, and they will be held legally accountable depending on the severity of the situation.
In 2021, the Company continued to step up its efforts to combat fraud and punished a number of
fraud cases. Meanwhile, to enhance employees' awareness of integrity, the Company conducted
62
compliance training, online and offline, for employees, and promoted the concept of integrity to
employees and suppliers during national holidays in the form of integrity-themed posters. In
terms of management improvement, audit projects in multiple areas were conducted to identify
business risks, and improve internal management, which effectively boosted the sound
development of the Company.
Cadres are the core and backbone of the Company, shouldering the significant responsibility of
promoting the Company's business development and leading its future growth. With great
attention to cadre management in 2021, the Company established an up-and-down collaborative
cadre supervision organization. Concerted effort was made to improve the work-style of cadres
and ensure the long-term healthy development of the Company. In order to regulate the
professional conduct, management work-style and virtue of cadres, the Company has established
a management system stipulating six "red lines" that cadres must never cross and ten "yellow
lines" that they are seriously asked not to cross. Red lines are the highest-level warnings, which
must never be touched, crossed or violated, and the Company has "zero tolerance" for "red-line"
behaviors. Yellow lines are cautionary warnings, indicating thoughts or behaviors unacceptable
in the workplace, and the Company
opposes any form of "yellow-line"
behaviors. By holding self-reflection
meetings, the Company guides cadres to
reflect on their thoughts and behaviors
against the "red lines" and "yellow lines",
so as to timely identify problems and
rectify them.
Corporate culture directly affects the development and the future of the Company. It is not only
the inherently necessary in ensuring the healthy development of the Company, but also a
motivation for employees to undertake their duties and responsibilities under the guidance of
correct values. To encourage everyone to learn from good examples, the Company widely
publicizing the stories of some employees in the corporate magazine, official WeChat account
and website, promotes the proactive and enterprising corporate culture and shapes the unique
63
culture of Goertek. The work-style of cadres has been incorporated into their appraisal,
promotion, and merit evaluation and performance assessment. Those who conduct unethical
behaviors are given "red cards" promptly, which effectively manages people while addresses
immorality issues. The management of cadres becomes more scientific, standardized and
institutionalized, and an environment featuring pragmatism, enterprise and initiative for doing
business is created.
Through patrol inspections and supervision, the Company conducts a comprehensive
examination of cadres to promptly identify problems and eliminate them at an early stage, so as
to force them give up any immoral idea A complaint hotline and a complaint mailbox have been
set up for complaints against cadres who touch the "red lines" and "yellow lines". These
complaints are handled at different levels according to requirements, and cadres who touch the
"red lines" will receive severe punishments and those who touch the "yellow lines" will be
warned in time. In 2021, the Company carried out meetings, seminars and knowledge contests
to warn cadres of the "red lines" and "yellow lines", remind cadres of the Company's mission
and to maintain loyalty, integrity and the sense of responsibility at all times, so as to jointly create
a good environment of integrity for the sustainable development of the Company.
6.4. Respect for Intellectual Property Rights
Since its inception, Goertek has attached great importance to intellectual property rights. Putting
the enhancement of its independent innovation capability at the core of the intellectual property
right work, through vertical integration and in-depth expansion of the industrial chain, based on
the pool of international key account clients and high-end talents as the guarantee, Goertek
actively captures the opportunities of emerging industries in
the era of intelligent consumer electronics, deeply integrating
itself into the global high-end industrial chain, accelerating
technological entrepreneurship and innovation, and
achieving sustainable and rapid development. It also digs
deep into the industrial trend related to its main business.
Based on the trend of the industry in which it operates, the
64
Company puts emphasis on identifying what technology has the potential to be used to apply for
patents and in what areas the Company should own patents. In 2021, the Company applied for
3,468 patents, including 2,539 invention patents, and was granted 1,036 invention patents. As of
December 31, 2021, a total of 25,818 patents (including 3,322 overseas patent applications) were
filed, including 13,102 invention patents; a total of 15,525 patents were granted, including 4,165
invention patents, reflecting the strong R&D capabilities of the Company.
The Company not only fully respects the intellectual property rights of others, but also attaches
great importance to the role of intellectual property rights in the Company's operation. As such,
the Company actively utilizes intellectual property rights to enhance its core competitiveness,
and vigorously promotes its proprietary products, to give full play to the value of its patents, and
to shape its core technologies and key technologies with its own intellectual property rights. A
sound innovation cooperation mechanism is structured and established to integrate internal and
external resources and carry out effective collaborative innovation and re-innovation. Intellectual
property strategies are formulated and implemented, and the operational mode and working
mechanism of intellectual property management are improved to enhance the capability of
intellectual property creation, application, management and protection. We also actively respond
to the national strategy by cooperating with well-known universities and research institutes in
the industry, academia and research, forming industrial clusters thanks to the extended influence
of such cooperation across the entire region, and enhancing the overall competitiveness of the
industry and the region. So far, we have established long-term strategic partnerships with a
number of renowned research institutions and universities dedicated to the basic research of
cutting-edge technologies and the development of new technologies and products in the field of
acoustic-optics, with fruitful results achieved.
Our intellectual property protection efforts have been recognized by government departments at
all levels, with the following honors in recent years: National Intellectual Property
Demonstration Enterprise, National Intellectual Property Advantage Enterprise, National Pilot
Enterprise for Patent Operation, National Technology Innovation Demonstration Enterprise,
Shandong Provincial Trademark & Brand Innovation Demonstration Unit, and Shandong
Provincial Intellectual Property Brand Unit for Key Core Technologies. We have remained the
65
winner of the First Prize of the Shandong New and Old Growth Driver Conversion High-Value
Patent Cultivation Competition, and won the Silver Award of the 22nd China Patent Award, as
well as the Excellence Award of China Patent Award, the First Prize of Shandong Province Patent
Award and the First Prize of Weifang City Patent Award for multiple times.
6.5. Client-Oriented
The core value of "client-oriented" can be interpreted in three levels: "meeting client needs",
"continuously satisfying clients", and "contributing to client success". By paying close attention
to clients, the Company identifies client needs and proactively solves problems for clients. By
vertically integrating precision components such as acoustic, optical and electrical structural
parts and solutions for smart hardware and complete systems, the Company provides clients with
one-stop services from design, R&D and testing to automated production and manufacturing,
and offers high-quality products and services with the overall innovative advantages of
marketing, R&D and manufacturing.
6.5.1. Guarantee Product Quality
At the early stage of Goertek's establishment, it was already proposed that "Quality is the
lifeblood of the Company, and initiative is the source of development". It has always been the
original intention of the Company to attach importance to quality and to provide best products
to clients. The quality management system of the Company is built based on ISO9001 and
deepened in IECQ QC080000, IATF16949, ISO13485, ESD, and NMPA standards. The system
is getting mature gradually. The Quality Management Department is set up on the platform of
the Company to take charge of system construction and evaluation in quality area, and a Quality
Management Center is set up in each business group to take charge of process quality guarantee
and system implementation.
In 2021, the platform led the business groups to carry out targeted quality process review with
the guidance of “prevention and prediction, quality value-added”. The end-to-end process
system construction was conducted in aspects including process framework, process definition
and process indicators related to quality. For example, the Quality Reward and Punishment
66
Management Regulations were optimized to implement "one-vote veto" for quality and safety,
providing robust institutional guarantee for product quality.
In terms of data informatization, the Company has built a quality process management system
with QIS system at the core, realizing end-to-end quality informatization from client demand to
client satisfaction. Analyzing by the big data analysis model, the results are fed back and then
guide the continuous improvement of the business. The development and replication of systems
in new product areas and new business areas of each business group, as well as the sorting and
development of scenario-based processes, are continuously providing insurance for secure
product launches.
It is precisely because of the Company's high standards and requirements for quality that no
quality penalties or quality failure announcements by the Quality Supervision Department have
occurred in the past three years. The Company was awarded the Nomination Award of China
Quality Award in September 2021, reshaping the brand image of Goertek.
6.5.2. Safeguard Clients' Rights and Interests
Goertek has always been practicing the corporate core values of "client-oriented, employee
development, trustworthy and pragmatic cooperation and mutual benefits". Putting clients at the
center of business operation, the Company believe our responsibility is to continuously satisfy
our clients and prioritize their requirements when providing products and services.
The Company strictly abides by business ethics in its operation, upholds the principles of fairness
and impartiality in transactions and respect for its partners, and signs relevant contracts with
clients on an equal footing in accordance with the relevant requirements of the Civil Code of the
People's Republic of China. Integrity Agreement and other agreements have also been signed to
provide strong support for fair transactions between both sides. With great emphasis on the
standardization of contract management, the Company has devoted much effort to the
management of contract standardization and established the systematic management of the
whole process from contract signing, contract implementation process monitoring to the filing
and archiving. Meanwhile, in order to strengthen the Company's credit management capability
67
and reduce transaction risks, the Company has formulated and improved client credit-related
management regulations and established a more comprehensive credit management system.
By firmly implementing the "Key Account Strategy", the Company focuses on business dealings
with global high-quality clients, and actively builds win-win relationships with clients. In
addition, it proactively collects and handles clients' voices, builds a good and trustworthy trade
order and wins clients' trust with excellent after-sales services. By following closely the
dynamics of the industry and responding positively to national trade policies, the Company aims
to play a greater role in fostering a prosperous, stable and sustainable trade environment.
While providing clients with quality products and services, the Company properly protects
clients' information, and strictly follows the confidentiality agreement signed with clients. It has
also formulated and improved the system for regulating the use of customer information, and set
up the Information Security Risk Management Regulations, which are strictly put into
implementation. Moreover, the Company continues to close all the loopholes, and ensure proper
network security protection by assessing all kinds of existing information systems and adding
functional modules such as password protection in information systems. The Company has
established a strict authorization management system, and carried out information security
training-related activities regularly to strength network security at all times and free clients from
any worries.
6.5.3. Continuously Enhance Brand Awareness
In order to raise the public's awareness of Goertek and its products, the Goertek Brand Exhibition
Hall was officially opened in 2021. Located in the domestic departures area of Qingdao Jiaodong
International Airport, the Exhibition Hall, a space that integrates smart technology and design
aesthetics, offers passengers an amazing experience. Travelers around the world are able to see
precision components related to sound, light and electricity in intelligent products in the
Exhibition Hall, and also listen to the beautiful sound delivered by TWS headsets, wireless
speakers and Hi-Fi speakers. In the Virtual Vision area in the Exhibition Hall, visitors can
experience virtual reality through immersive and realistic head-mounted VR displays and
intelligent seats. There are also interactive projection lights and other intelligent products on site,
68
allowing visitors to experience health and beauty through technology. On the launch day,
Goertek also gave away noise-cancelling earplugs in a creative way to passengers on site,
providing them with a better travel experience while arousing their interest in high-tech products.
Under the core value of "client-oriented", in order to improve employees' brand knowledge and
better provide more professional services to clients, the Company completed nearly ten offline
trainings on brand knowledge in 2021, covering topics including brand concept, brand symbols
and brand colors. New employees and relevant personnel from various departments were trained,
with nearly 20,000 people learning through the brand training e-courses online. This effectively
conveyed the Company's brand concept. In order to enable employees to better understand the
stories behind the brand, a podcast that shares the brand's stories called "Night Reading" was
launched. In each episode of the monthly podcast, a short story is read out while a long image
69
that illustrates the story is displayed in the background, to make employees feel the warmth of
the stories about the Company's development and understand the culture of Goertek, and through
continuous training, to, and deepen employees' understanding of brand knowledge and motivate
them to practice what they have learned.
6.6. Promotion of Common Growth with Suppliers
While actively carrying out and implementing its own CSR, Goertek also attaches great
importance to the CSR management of its suppliers, committed to building a safe, efficient, fair
and sustainable supply chain system. The Company works closely with its suppliers to strengthen
the continuous improvement and management of CSR across the supply chain through
environmental, social and governance risk assessment and audit verification. The aim is to ensure
that products are produced in a socially responsible manner in order to achieve sustainable
development of the supply chain.
6.6.1. Responsible Supply Chain
Goertek endeavors to build a mutually beneficial, sustainable and competitive platform with its
suppliers. It upgrades the multi-dimensional evaluation of suppliers by improving the rules and
mechanisms, and drives its suppliers to become better together with Goertek. The Company has
strict rules for its suppliers in terms of integrity, honesty and environmental protection, and
requires suppliers to shoulder their social responsibility in labor protection, environment, health
and safety, and ethics by signing the Supplier Social Responsibility Commitment and Integrity
Commitment formulated on the basis of the RBA Code of Conduct and assessing the CSR
performance of suppliers. In addition, it guides suppliers to establish harmonious relationships
with their employees, boosts their CSR awareness and management capabilities, and works with
them to build a responsible supply chain.
In 2021, the Company set up dedicated internal control to strengthen the internal control
supervision and improve business compliance. The supply chain rectification campaign was
carried out to create a transparent supply chain. Continuous efforts were made to promote
Goertek's supply chain social responsibility policy to its partners, with particular emphasis on
the fact that should a supplier be involved in any "red-line" issues, such as child labor, forced
70
labor, prison labor, major fire safety hazards, no environmental impact assessment approval &
acceptance approval, and illegal disposal of hazardous waste, the Company would reject
cooperation through one-vote veto.
Besides, as the leading enterprise of the new-generation IT industry in Shandong Province, the
Company takes the initiative to contact with "specialized, advanced, distinctive and innovative"
enterprises in the province for cooperation opportunities, and works to attract suppliers to build
factories in the vicinity of Weifang, so as to build a cluster of advanced electronic information
enterprises.
6.6.2. Responsible Mineral Supply Chain
Goertek endeavors to responsibly source tin, tantalum, tungsten, gold, cobalt and other mineral
raw materials used in its products, and to promote the development of policies among its
suppliers to prevent and reduce risks of minerals contained in their manufactured products
coming directly or indirectly from high-risk areas, in accordance with the requirements of the
OECD Due Diligence Guidance and the Chinese Due Diligence Guidelines for Responsible
Mineral Supply Chains (hereinafter collectively referred to as the "Guidelines") as well as the
RMI International Guidelines. The Company requires suppliers to conduct responsible mineral
due diligence on the minerals used in the products it purchases, and to share due diligence
information with clients to ensure consistency between its supply chain policies and the
implementation of the Guidelines. The Guarantee Letter of Non-Use of Conflict Minerals is also
included as an attachment to the supplier contract or as a supplemental agreement for binding
regulation. The Company conducts a corporate-level responsible mineral inspection at least once
a year, during which it investigates the corresponding suppliers in real time according to
customer requirements, thus continuously promoting the completion of responsible mineral
procurement throughout the supply chain together with clients and suppliers.
Goertek complies with laws and regulations on trade control and economic sanctions related to
Goertek's business in China, international organizations such as the European Union and the
United Nations, and countries including the United States, to effectively fulfill its export control
responsibilities and obligations and to establish a global corporate image characterized by
71
integrity and responsible management. In 2021, Goertek set up a Trade Compliance Group,
taking full responsibility for formulating and improving the Company's trade compliance
policies, systems, organization and processes, approving or making decisions on major trade
compliance matters and solutions, promoting the implementation and enforcement of relevant
requirements in applicable business areas, and conducting regular internal reviews and audits of
the trade compliance system.
7. Community Engagement
Goertek values dedication, mutual support and gratitude, and actively fulfills its social
responsibilities while conducting good production and operation.
In 2021, the Company carried out five
welfare and philanthropic campaigns
including the "Your Generosity Gives
Hope" campaign for the children of
employees, the "Meet your love on the
Chinese Qixi Festival" campaign to help
employees find spouses, the "Heart-warming Double Ninth Festival" campaign for the parents
of employees, and the "Love Knows No Bounds, Goertek is Always with You" campaign for the
children of employees and a campaign helping out employees in need during the Spring Festival.
A total of 114 persons received assistance, including 82 employees and their relatives suffering
from severe diseases, as well as 19 employees in need, with a total of 937,700 RMB provided.
In 2021, the "Goertek - Together Plan" public welfare activity continued, with Goertek using its
own technology to bring such technologies as VR, AR and drones into classrooms of schools
lacking such educational resources. In 2021, the Company established four new "Growth
Stations" in Rongcheng Shidao Experimental Primary School, Linqu Bayi Hope Primary School,
Anqiu Xiapo Primary School and Anqiu Linghe Primary School. Volunteers from the Company
made use of their expertise to develop science courses, teaching materials and various fun skill
development programs to help students broaden their horizons and develop their interests,
inspiring children with science and technology and motivating them to grow up to be outstanding
72
talents. A total of more than two hundred and fifty people participated in the activities throughout
the year, and drones, VR devices and teaching materials were donated to schools. These tech
devices were maintained regularly, assisting schools in exposing more students to science
education. As of early 2022, the "Goertek - Together Plan" had already established eight
"Goertek Growth Stations", covering more than 2,000 students in Anqiu, Linqu and Rongcheng,
and the activities were well received by local teachers and students and commended by the
education department. In addition to helping out teaching, the "Growth Specialists" kept contact
with the schools to help them solve difficulties, fulfilling hundreds of students' wishes.
In 2021, the assistance activities for families in need in the Vietnamese subsidiary continued. As
China and Vietnam are friendly neighbors, the Company and the labor union kept following up
the living conditions of the employees in Vietnam. Throughout the year, the management of the
company provided strong support to 46 employees in need by visiting their families and offering
gifts.
73
Recognizing the seriousness of the pandemic and the risk of infection through waste posed to
employees, the Vietnamese subsidiary organized a "waste pick-up" activity among employees
inside and outside factories, not only to protect
the environment but also to reduce the risk of
virus transmission. The subsidiary took an
active part in supporting the Vietnamese
government's pandemic prevention actions,
which demonstrated its fulfillment of social
responsibility.
8. Outlook
With great expectation for the future, Goertek is committed to become a world-class enterprise
in the face of exceptional opportunities arising from the development of a new generation of
information technology, thus providing its employees with a better platform and yielding greater
returns. Meanwhile, Goertek believes all companies should bear their social responsibilities. The
effective development and implementation of actions demonstrating social responsibilities will
in turn boost their sound and sustainable development. The Company will continue to fulfill its
corporate social responsibility, and boost economic growth while shouldering social
responsibility, so as to gradually achieve its sustainable development and create a better life with
technology.
74
Table of Corporate Honors in 2021
Date Title of Honor Awarding Institution
Shandong Provincial Science and Shandong Provincial People's
Technology Progress Award - First Prize Government
Department of Industry and
New Leap-Forward Private Enterprise of
Information Technology of
Shandong Province in 2020
December Shandong Province
2021 Organizing Committee of
Shandong New and Old Growth Driver Shandong New and Old
Conversion High-Value Patent Cultivation Growth Driver Conversion
Competition - First Prize High-Value Patent Cultivation
Competition
Shandong Enterprise
Top 100 Industrial Enterprises in Shandong Confederation, Shandong
in 2021 - No. 22 Enterprise Directors
Association
Shandong Enterprise
November
Top 100 Enterprises in Shandong in 2021 - Confederation, Shandong
2021
No. 27 Enterprise Directors
Association
Standing Council Director of China Standing Council of China
Federation of Electronics and Information Federation of Electronics and
Industry Information Industry
Industry of Virtual Reality
Alliance, China Federation of
China's Top 50 VR Companies in 2021
October 2021 Electronics and Information
Industry
Top 100 Most Competitive Enterprises in China Federation of
75
Electronic Information in 2021 Electronics and Information
Industry
China Enterprise
Top 500 Chinese Enterprises - No. 351 Confederation, China
Entrepreneurs Association
China Enterprise
Top 500 Chinese Manufacturing Enterprises
Confederation, China
- No. 164
Entrepreneurs Association
The 2021 (34th) Ranking of China's
Electronic Component Companies in terms China Electronic Components
September
of economic indicators and comprehensive Association
2021
R&D strength - No. 1
Top 500 Private Manufacturing Enterprises All-China Federation of
in China in 2021 - No. 86 Industry and Commerce
Top 500 Private Enterprises in China in All-China Federation of
2021- No. 164 Industry and Commerce
Selection and Commendation
China Quality Award - Nomination Award Committee of the Fourth
China Quality Award
Federation of industry and
Commerce of Shandong
Top 100 Private Enterprises in Shandong -
Province, Department of
No.13
Science and Technology of
August 2021 Shandong Province, etc.
Top 10 Leading Private Enterprises of
Department of Industry and
Shandong Province in New Generation
Information Technology of
Information Technology Industry in 2021 -
Shandong Province
No.1
76
Department of Industry and
Top 100 Innovative Private Enterprises in
Information Technology of
Shandong in 2021 - No.1
Shandong Province
China National Intellectual
Property Administration and
June 2021 The 22nd China Patent Award - Silver
World Intellectual Property
Organization
Top 500 Most Valuable Brands in China in
May 2021 Brand Finance
2021 - No. 99
Co-founder of the Industry-University-
China Industry-University-
Research Institute Collaboration and
Research Institute
Innovation Platform for Electronic
Collaboration Association
Materials and Components in China
April 2021 Executive Vice-President Unit of the
Industry-University-Research Institute China Industry-University-
Collaboration and Innovation Platform for Research Institute
Electronic Materials and Components in Collaboration Association
China
Top 100 Most Valuable Technology Brands
January 2021 Brand Finance
in the World in 2021
77
Appendix: GRI Sustainability Reporting Standards Index Table
General Disclosures
Corresponding Chapter
GRI Disclosure Item Page
and Description
GRI 102: General Disclosures 2016
1. Organizational profile
102-1 Name of the organization 1.1. Company Profile 1
102-2 Activities, brands, products, and services 1.1. Company Profile 1
102-3 Location of the headquarter 1.1. Company Profile 1
102-4 Location of operations 1.1. Company Profile 1
102-5 Ownership and legal form 1.1. Company Profile 1
102-6 Markets served 1.1. Company Profile 1
102-7 Scale of the organization 1.1. Company Profile 1
102-8 Information on employees and other workers 3. Employee Care 16
6.6. Promotion of Common
102-9 Supply chain 70
Growth with Suppliers
102-10 Significant changes to the organization and its No significant changes
supply chain during the report period
2.1.3. Innovation
Mechanism and Investment
13,
4.1. Hazard Identification
102-11 Precautionary principle or approach 38,
and Control
67
6.5.2. Safeguard Clients'
Rights and Interests
1.2.2. Operation of the
7,
CSR Management
102-12 External initiatives 16,
Committee
70
3. Employee Care
78
6.6.1. Responsible Supply
Chain
Industry of Virtual Reality
Alliance, China Federation
of Electronics and
Information Industry,
102-13 Membership of associations
China Electronic
Components Association,
China Audio Industry
Association, etc.
2. Strategy
Refer to the "Outlook for
the Future Development of
the Company" in Section
102-15 Key impacts, risks, and opportunities III: Management
Discussion and Analysis of
Goertek's Annual Report
2021
3. Ethics and integrity
1.1. Company Profile
1.2.2. Operation of the 1,
102-16 Values, principles, standards, and norms of
CSR Management 7,
behavior
Committee 61
6. Integrity in Business
102-17 Mechanisms for advice and concerns about
6. Integrity in Business 61
ethics
4. Governance
1.2. Corporate Operating
102-18 Governance structure 4
Mechanism
79
1.2.2. Operation of the
102-19 Delegating authority CSR Management 7
Committee
102-20 Administrative-management-level 1.2.2. Operation of the
responsibility for economic, environmental, and social CSR Management 7
topics Committee
1.2.2. Operation of the
102-21 Consultation with stakeholders on economic,
CSR Management 7
environmental, and social topics
Committee
102-22 Composition of the highest governance body 1.2.1. Operation of the
4
and its committees Board of Directors
1.2.1. Operation of the
Board of Directors
Refer to the relevant
102-23 Chair of the highest governance body content in Section IV: 4
Corporate Governance of
Goertek's Annual Report
2021
102-24 Nomination and selection of the highest 1.2.1. Operation of the
4
governance body Board of Directors
1.2.1. Operation of the
Board of Directors 4，
102-25 Conflicts of interest
1.3. Stakeholder 9
Communication
102-26 Role of highest governance body in setting the 1.2. Corporate Operating
4
purpose, values, and strategies Mechanism
1.2.2. Operation of the
102-27 Collective knowledge of highest governance
CSR Management 7
body
Committee
80
1.2.2. Operation of the
102-28 Evaluation of the highest governance body’s
CSR Management 7
performance
Committee
1.2.2. Operation of the
102-29 Identification and management of economic,
CSR Management 7
environmental, and social impacts
Committee
1.2.2. Operation of the
102-30 Effectiveness of risk management processes CSR Management 7
Committee
1.2.2. Operation of the
102-31 Review of economic, environmental, and
CSR Management 7
social topics
Committee
1.2.2. Operation of the
102-32 Highest governance body’s role in
CSR Management 7
sustainability reporting
Committee
1.2.1. Operation of the
Board of Directors 4，
102-35 Remuneration policies
3.2. Compensation and 19
Benefits
1.2.1. Operation of the
Board of Directors 4，
102-36 Process for determining remuneration
3.2. Compensation and 19
Benefits
1.2.1. Operation of the
Board of Directors 4,
102-37 Stakeholders’ involvement in remuneration
1.3. Stakeholder 9
Communication
102-38 Annual total remuneration ratio
81
Refer to "Notes to the
Consolidated Financial
102-39 Percentage increase in annual total Statements" in Section X
remuneration ratio "Financial Reports" of
Goertek's Annual Report
2021
5. Stakeholder engagement
1.3. Stakeholder
102-40 List of stakeholder groups 9
Communication
1.3. Stakeholder
Communication 9,
102-41 Collective bargaining agreements
3.4. Employee Engagement 32
and Communication
1.3. Stakeholder
102-42 Identification and selection of stakeholders 9
Communication
1.3. Stakeholder
102-43 Approach to stakeholder engagement 9
Communication
1.3. Stakeholder
102-44 Key topics and concerns raised 9
Communication
6. Reporting practice
Refer to "Interests in other
entities" in Section X
102-45 Entities included in the consolidated financial
"Financial Reports" of
statements
Goertek's Annual Report
2021
102-46 Definition of boundaries of content and issues
Contents Ⅲ
in the reports
102-47 List of substantial issues Contents Ⅲ
82
No restatements of
102-48 Restatements of information
information
102-49 Changes in reporting About this report Ⅱ
102-50 Reporting period About this report Ⅱ
102-51 Date of the most recent report About this report Ⅱ
102-52 Reporting cycle About this report Ⅱ
102-53 Contact information for any questions
Feedback Ⅱ
regarding the report
102-54 Claims of reporting in accordance with the
About this report Ⅱ
GRI Standards
Appendix: GRI
102-55 GRI content index Sustainability Reporting 78
Standards Index Table
Materiality Disclosure
Corresponding Chapter
GRI Disclosure Item Page
and Description
201: Economic Performance 2016
Refer to "Key Accounting
Data and Financial
Indicators" in Section II "
201-1 Direct economic value generated and
Company Profile and Key
distributed
Financial Indicators" of
Goertek's Annual Report
2021
5.3. Resource Recycling 53,
201-2 Financial implications and other risks and and Climate Change 40,
opportunities due to climate change Mitigation 57,
5.3.2. Promote the Use of 54
83
Clean Energy to Increase 55
the Percentage of "Green
Energy"
5.3.3. Actively Carry Out
Energy Conservation
Technology Improvement
and Improve Energy
Efficiency of Equipment
201-3 Defined benefit plan obligations and other 3.2. Compensation and
19
retirement plans Benefits
Refer to "Notes to the
Consolidated Financial
201-4 Financial assistance received from the Statements" in Section X
government "Financial Reports" of
Goertek's Annual Report
2021
202: Market Presence 2016
3.1. Respect for Employees
and Protection of their
202-1 Ratios of standard entry-level wage by gender Legal Rights and Interests 17,
compared to local minimum wage According to Law 19
3.2. Compensation and
Benefits
203: Indirect Economic Impacts 2016
203-1 Infrastructure investments and auxiliary
7. Community Engagement 72
services
203-2 Significant indirect economic impacts 7. Community Engagement 72
205: Anti-corruption 2016
84
205-1 Operations assessed for risks related to 6.3. Anti-Corruption and
62
corruption Anti-Fraud
205-2 Communication of and training about anti- 6.3. Anti-Corruption and
62
corruption policies and procedures Anti-Fraud
205-3 Confirmed incidents of corruption and actions 6.3. Anti-Corruption and
62
taken Anti-Fraud
206: Improper behaviors in competition 2016
206-1 Legal actions for improper behaviors in
competition as well as anti-trust and anti-monopoly 6.2. Fair Competition 62
practices
207: Tax 2019
207-1 Approach to tax
Refer to "Taxation" in
207-2 Tax governance, control, and risk management
Section X "Financial
207-3 Stakeholder engagement and management of
Reports" of Goertek's
concerns related to tax
Annual Report 2021
207-4 Reporting by country
301: Materials 2016
301-1 Weight or volume of materials 5.2.4. Waste Treatment 52
301-2 Recycled materials used 5.2.4. Waste Treatment 52
302: Energy 2016
5.3. Resource Recycling
302-1 Energy consumption within the organization and Climate Change 53
Mitigation
5.3. Resource Recycling
302-2 Energy consumption outside of the organization and Climate Change 53
Mitigation
5.3. Resource Recycling
302-3 Energy intensity and Climate Change 53
Mitigation
85
5.3. Resource Recycling
302-4 Reduction of energy consumption and Climate Change 53
Mitigation
2.2. Promotion of Green
Products
302-5 Demand of products and services of lower 14,
5.3. Resource Recycling
energy consumption 53
and Climate Change
Mitigation
303: Water and Effluents 2018
303-1 Influence of the organization and water as a 5.2.1. Wastewater
51
shared resource on each other Management
5.2.1. Wastewater
303-2 Management of water discharge-related impacts 51
Management
5.2.1. Wastewater
303-3 Water withdrawal 51
Management
5.2.1. Wastewater
303-4 Water discharge 51
Management
5.2.1. Wastewater
303-5 Water consumption 51
Management
306: Waste 2020
306-1 Waste generation and significant waste-related
5.2.4. Waste Treatment 52
impacts
306-2 Management of significant waste-related
5.2.4. Waste Treatment 52
impacts
306-3 Waste generated 5.2.4. Waste Treatment 52
306-4 Waste diverted from disposal 5.2.4. Waste Treatment 52
306-5 Waste directed to disposal 5.2.4. Waste Treatment 52
307: Environmental Compliance 2016
86
5.1. Environmental
307-1 Non-compliance with environmental laws and Management
51
regulations No such cases occurred
during the reporting period
308: Supplier Environmental Assessment 2016
308-1 New suppliers screened using environmental 6.6.1. Responsible Supply
70
criteria Chain
6.6.1. Responsible Supply
308-2 Negative environmental impacts in the supply Chain
70
chain and actions taken No such cases occurred
during the reporting period
401: Employment 2016
401-2 Benefits provided to full-time employees (not 3.2. Compensation and
19
provided to temporary or part-time employees) Benefits
3.1. Respect for Employees
and Protection of their
401-3 Parental leave 17
Legal Rights and Interests
According to Law
402: Labor/Management Relations 2016
3.1. Respect for Employees
402-1 Minimum notice periods regarding operational and Protection of their
17
changes Legal Rights and Interests
According to Law
403: Occupational Health and Safety 2018
403-1 Occupational health and safety management 4. Occupational Health and
37
system Safety
403-2 Hazard identification, risk assessment, and 4.1. Hazard Identification
38
incident investigation and Control
87
4.3. Protection of
403-3 Occupational health services Employee Safety and 44
Health
4.3. Protection of
403-4 Worker participation, consultation, and
Employee Safety and 44
communication on occupational health and safety
Health
403-5 Worker training on occupational health and 4.3.2. Safety and Health
44
safety Training
4.2. Shaping a Sound
Working Environment
39,
403-6 Promotion of worker health 4.3. Protection of
44
Employee Safety and
Health
403-7 Prevention and mitigation of occupational
4.2. Shaping a Sound
health and safety impacts directly linked by business 39
Working Environment
relationships
4.2. Shaping a Sound
Working Environment
403-8 Workers covered by an occupational health and 39,
4.3. Protection of
safety management system 44
Employee Safety and
Health
4.3. Protection of
403-9 Work-related injuries Employee Safety and 44
Health
4.2. Shaping a Sound
Working Environment
39,
403-10 Work-related ill health 4.3. Protection of
44
Employee Safety and
Health
88
404: Training and Education 2016
404-1 Average hours of training per year per 3.3. Career Development
25
employee and Growth of Employees
2.1.2. Gathering Talents
404-2 Employee skill improvement programs and 11,
3.3. Career Development
transition assistance programs 25
and Growth of Employees
404-3 Percentage of employees receiving regular 3.3. Career Development
25
performance and career development assessments and Growth of Employees
405: Diversity and Equal Opportunity 2016
3.1. Respect for Employees
and Protection of their
405-1 Diversity of governance bodies and employees 17
Legal Rights and Interests
According to Law
3.1. Respect for Employees
405-2 Ratio of basic salary and remuneration of and Protection of their
17
women to men Legal Rights and Interests
According to Law
406: Non-discrimination 2016
3.1. Respect for Employees
406-1 Incidents of discrimination and corrective and Protection of their
17
actions taken Legal Rights and Interests
According to Law
407: Freedom of Association and Collective Bargaining 2016
407-1 Operations and suppliers at possible risk for the
3.4. Employee Engagement
right to freedom of association and collective 32
and Communication
bargaining
408: Child Labor 2016
408-1 Operations and suppliers at significant risk for 3.1. Respect for Employees
17
incidents of child labor and Protection of their
89
Legal Rights and Interests
According to Law
No cases of child labor
occurred during the
reporting period
409: Forced or Compulsory Labor 2016
3.1. Respect for Employees
409-1 Operations and suppliers at significant risk for and Protection of their
17
incidents of forced or compulsory labor Legal Rights and Interests
According to Law
411: Rights of Indigenous Peoples 2016
411-1 Incidents of violations involving rights of No such cases occurred
indigenous peoples during the reporting period
412: Human Rights Assessment 2016
3.1. Respect for Employees
412-1 Operations that have been subject to human and Protection of their
17
rights reviews or impact assessments Legal Rights and Interests
According to Law
3.1. Respect for Employees
412-2 Employee training on human rights policies or and Protection of their
17
procedures Legal Rights and Interests
According to Law
3.1. Respect for Employees
and Protection of their
412-3 Significant investment agreements and
Legal Rights and Interests 17,
contracts that include human rights clauses or that
According to Law 70
underwent human rights screening
6.6.1. Responsible Supply
Chain
413: Local Communities 2016
90
413-1 Operations with local community engagement,
7. Community Engagement 72
impact assessments, and development programs
413-2 Operations with significant actual and potential
7. Community Engagement 72
negative impacts on local communities
414: Supplier Social Assessment 2016
6.6. Promotion of Common
414-1 New suppliers screened using social criteria 70
Growth with Suppliers
414-2 Negative social impacts of the supply chain and 6.6. Promotion of Common
70
actions taken Growth with Suppliers
415: Public Policy 2016
No such cases occurred
415-1 Political contributions
during the reporting period
416: Client Health and Safety 2016
2.2. Promotion of Green
416-1 Assessment of the health and safety impacts of Products 14,
product and service categories 6.5.1. Guarantee Product 66
Quality
416-2 Incidents of non-compliance concerning the No such cases occurred
health and safety impacts of products and services during the reporting period
417: Marketing and Labeling 2016
2.2. Promotion of Green
417-1 Requirements for product and service Products 14,
information and labeling 6.5.1. Guarantee Product 66
Quality
417-2 Incidents of non-compliance concerning No such cases occurred
product and service information and labeling during the reporting period
417-3 Incidents of non-compliance concerning No such cases occurred
marketing communications during the reporting period
418: Client Privacy 2016
91
6.5.2. Safeguard Clients'
418-1 Substantiated complaints concerning breaches Rights and Interests
67
of client privacy and losses of client data No such cases occurred
during the reporting period
419: Socioeconomic Compliance 2016
3.1. Respect for Employees
and Protection of their
Legal Rights and Interests
According to Law
17,
6.1. Integrity Concept
419-1 Non-compliance with laws and regulations in 61,
6.3. Anti-Corruption and
the social and economic areas 62,
Anti-Fraud
71
6.6.2. Responsible Mineral
Supply Chain
No such cases occurred
during the reporting period
Board of Directors of Goertek Inc.
March 29, 2022
92
