Stock Code:688348
Address
Building 2, No.522, Asia Pacific Road,
National Sales Hotline
Environmental, Social and Governance
Yuneng Technology
(ESG) Report
Nanhu District, Jiaxing City, Zhejiang Province
Co., Ltd. Phone After-sales Service Hotline
CONTENTS
About This Report 01
Chairman's Message 03
A Close Glimpse at APsystems 05
Sustainable Prosperity,
Perpetual Development 17
Robust Supervision, 19 Employee Well-being with 65
Governance as Priority Boundless Rights and Interests
Governance Framework 21 Labor Relations Management 67
Risk Control Management 24 Employee Training and Development 74
Investor Relations 26 Health and Safety 77
Business Ethics 29
Promoting Social Harmony 81
Environmental Conservation
for Future Collaboration
Emphasizing Green Management
Expanding Green Business Initiatives
Sustaining Green Operations 41
Appendix 85
Key Performance 85
Industrial Prosperity
and Value Co-Creation
Feedback Form 88
Research and Development (R&D) Innovation 45
Product Liability 51
Customer Rights and Interests 55
Sustainable Supply Chain Management 59
Information Security and Privacy Protection 62
Environmental, Social and
About This Report Governance (ESG) Report
About This Report
This report represents the inaugural Environmental, Social and Governance report ((hereinafter referred to as "ESG report") released
by Yuneng Technology Co., Ltd. (hereinafter referred to as "APsystems", "the company" or "we"). Upholding principles of objectivity,
standardization, transparency and comprehensiveness, this report provides a detailed disclosure of the company's practices and
performance in environmental, social and governance aspects for the fiscal year 2023.
Scope of the Report Data Description
This report centers on "APsystems" as the principal entity, encompassing its subsidiary companies. Unless otherwise specified, the The data used in this report is sourced from various channels, including raw operational data from the company's actual operations,
scope of this report remains aligned with that of the company's annual report. publicly available data from government departments, annual financial data, internal relevant statistical reports, and third-party
evaluation interviews. Financial data in this report is presented in Chinese Yuan (CNY). Any discrepancies with the financial report
will defer to the financial report for accuracy.
Timeframe
Term Definition
From January 1, 2023, to December 31, 2023 (referred to as the "reporting period"). To enhance comparability and forward-looking
insights, certain sections of this report appropriately reference historical years or contain forward-looking descriptions. The release
Term Definition
frequency of this report is annual, synchronized with the financial year.
"APsystems", "the company" or "we” Yuneng Technology Co., Ltd.
Preparation Basis
Confirmation and Approval
Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies of Sci-Tech Innovation Board No. 1 - Standardized
Operation (December 2023 Revision)
This report was approved by the company's board of directors on April 22, 2024, and is released simultaneously with the annual
Chinese Academy of Social Sciences Guide to Corporate Social Responsibility Reporting in China (CASS-ESG 5.0) report. The board of directors ensures the supervision of the report's content, guaranteeing the absence of any false or misleading
statements and taking responsibility for the content's truthfulness, accuracy and completeness.
Global Reporting Initiative GRI Sustainability Reporting Standards (GRI Standards) (2021 Edition)
This report is published in Chinese, and the English version is a translation of the Chinese version. In the event of any discrepancies
UN Sustainable Development Goals (SDGs) between the two versions, the Chinese version shall prevail.
Sustainability Accounting Standards Board (SASB) Standards
Report Access
This report is accessible for viewing and downloading on the company's website (www.apsystems.cn) and the Shanghai Stock
Exchange website (http://www.sse.com.cn).
Environmental, Social and
Chairman's Message Governance (ESG) Report
Chairman's Message
Driven by the urgent global demand for environmental protection and climate The board of directors places high importance on ESG matters, namely Environmental, Social and Governance aspects. We
change mitigation, the wave of global low-carbon transformation is sweeping manage the company with integrity and responsibility, actively promoting the implementation of sustainable development
across nations. Countries worldwide are setting emission reduction targets and strategies. We will gradually establish and improve the ESG system, implementing a series of measures and policies to effectively
increasing support for renewable energy, thus contributing to the construction realize environmental and resource protection, and promote green long-term development.
of a global community with a shared future for all life on Earth.
Aligned with the trends of the times, APsystems values research and development innovation, continuously introducing new
APsystems, as a company focused on the new energy sector, has always technologies and products to provide users with safer, more efficient green energy solutions. In 2023, APsystems completed its
regarded green, low-carbon and sustainability as the core principles guiding our latest corporate strategic footprint, defining the three major energy storage industry ecosystems centered around micro-inverters:
corporate development. With technological innovation as our backbone, we are DIY micro-storage, residential energy storage, industrial and commercial energy storage. This positions us as a comprehensive
committed to our unchanging mission of "Driving Towards a Zero-Carbon distributed photovoltaic + energy storage solution provider. APsystems is expanding its technological and product footprint
Future, Co-Creating an Intelligent Life". comprehensively to meet the green energy needs in different distributed scenarios.
Having deep-rooted experience in the photovoltaic industry for over 13 years, Additionally, APsystems places great emphasis on customer service, adhering to a customer-centric philosophy, constantly
APsystems is dedicated to the research and industrialization of MLPE improving service quality and satisfaction, and building long-term and cooperative relationships with numerous clients. Leveraging
module-level technology. Through generations of "pioneering technologies and a localized distribution and service network, APsystems provides 24/7 year-round service to meet the needs of local customers.
products", we empower the industry for high-quality development. As the Through collaborative efforts with partners, APsystems' products are now present in over 110 countries and regions worldwide,
company advances standardized management operations, APsystems actively covering residential, industrial and commercial, public buildings and BIPV sectors, accelerating the global transition to green
promotes the concept of green and stable operations, enhancing internal energy.
management standards and efficiency to ensure the compliance and
While promoting the development of photovoltaic energy storage technology and serving our customers well, APsystems actively
sustainable development of all business activities. During the reporting period,
fulfills its social responsibilities, contributing to the development of public welfare projects. We focus on environmental protection,
the company's operating income increased steadily, creating greater value for
education, poverty alleviation, and support specific projects through donations, volunteer activities and other means, driving
our customers, shareholders, suppliers and employees. In 2022, the company
tangible impact in these areas. Through philanthropic endeavors, we not only provide convenience to those in need but also give
officially listed on the A-share Sci-Tech Innovation Board, leveraging the capital
more meaning to our efforts.
market to boost the company's substantial development.
APsystems' current development is the result of the hard work and wisdom of every APsystems employee. As a people-oriented
enterprise, APsystems always cares about the development and well-being of its employees. We provide a good working
environment and benefits, emphasize employee training and career development. We encourage innovative thinking and
teamwork, and offer broad development opportunities to our employees.
In the future, APsystems will further solidify its ESG system construction and, with a fresh perspective, embark on a new chapter
of high-quality development. While striving for our own development, APsystems also aspires to be the "most efficient, safe and
clean energy converter". We actively collaborate with various sectors of society to drive the ongoing global transition to green
energy and create a better future together.
Yuneng Technology Co., Ltd.
Chairman
Environmental, Social and
A Close Glimpse at APsystems Governance (ESG) Report
A Close Glimpse at APsystems
Company Overview
Yuneng Technology Co., Ltd. (Stock Code: 688348.SH) was established in 2010,
specializing in the research and industrialization of MLPE module-level power
electronic technology. We have launched or are in the process of developing a
series of highly competitive MLPE products, providing distributed photovoltaic +
energy storage solutions centered around micro-inverters. Our product portfolio
includes micro-inverters, module-level disconnectors, energy storage systems,
EMA databases and intelligent operation platforms and more.
The company has been recognized as a "National High-tech Enterprise" from
and Characteristic Enterprises in Zhejiang Province's Electronic Information
Industry" for nine years from 2014 to 2022. Additionally, from 2020 to 2022,
APsystems was awarded the title as "Top Inverter Brand" from EUPD Research for
three consecutive years. In 2021, the company was honored as a "Specialized and
New" Small and Medium-sized Enterprises in Zhejiang Province and recognized
as a leader in per-acre efficiency in specific sectors and industries in Zhejiang
Province. Our products have been selected as "Zhejiang Manufacturing
Excellence". APsystems is the first drafting entity for the PV grid-connected
microinverter under the "Zhejiang Manufacturing" group standard, filling a gap in
this field domestically.
We adhere to the principle of independent research and development, focusing
on quality and steady progress, making us one of the earliest companies in China
engaged in the research, development and sales of photovoltaic micro-inverters.
We persist in product and service orientation based on market demand, making
continuous efforts since 2011 to expand globally. We have successively
established subsidiaries or branches in major international photovoltaic markets
such as the United States, Australia, France, the Netherlands and Mexico. This
has formed a global sales and service network, propelling us to become the
world's second-largest supplier of micro-inverter products. As of the end of the
reporting period, more than 360,000 sets of APsystems micro-inverter
photovoltaic power generation systems are running seamlessly in over 100
countries and regions worldwide, including Australia, North America, South
America, Europe and more. With stable product quality and excellent
performance, the company enjoys high brand awareness and reputation in the
industry.
In the future, APsystems will continue to refine itself, keep pace with the times,
and create a broader landscape for its future development, aiming to become the
"most efficient, safe and clean energy converter" and actively contribute to the
ongoing global transition to green energy, thereby co-creating an intelligent life.
Environmental, Social and
A Close Glimpse at APsystems Governance (ESG) Report
Development 2009 2010 2011
Milestones Founded in Silicon Valley, USA. Established the headquarters in
Jiaxing, focusing on research and
Established subsidiaries in Sydney, Australia, and Shanghai, China
Introduced as the pioneering micro-inverter brand in the Australian market
operations.
Launched the first-generation single-phase micro-inverter
Established a subsidiary in Mexico Established a subsidiary in Lyon, France Awarded "Zhejiang Province Patent Established a subsidiary in Rotterdam, Netherlands Pioneered multi-unit micro-inverter architecture.
Established a subsidiary in
Demonstration Enterprise" and "Zhejiang Released the world's first dual-unit single-phase
Introduced the world's first third- Seattle, USA
Designated as a "Zhejiang Province Export Brand". micro-inverter YC500
The world's first multi-unit single-phase micro-inverter
generation multi-unit micro-inverter Enterprise Technology Center"
Again recognized as one of the "50 YC500 received multiple honors such as "Zhejiang Introduced the world's first quad-unit three- phase Completed the world's
products YC600 and QS1, compliant with
Again awarded "National High-Tech Growth-Oriented and Characteristic Enterprises Manufacturing Excellence" and "First Set of Equipment micro-inverter YC1000-3 largest 6MW micro-inverter
intelligent grid scheduling
Enterprise" and "50 Growth-Oriented in Zhejiang Province's Electronic Information Manufacturing Products in Zhejiang Province" project at that time
Awarded "Key Enterprise in Zhejiang and Characteristic Enterprises in Industry". Recognized as a "National High-Tech Enterprise" and
Province's Information Economy - Zhejiang Province's Electronic Recognized as one of the "50 Growth-Ori-
Innovative Leading Enterprise" Information Industry" Included in the fifth batch of the enterprise "Jiaxing City-Level High-Tech R&D Center"
ented and Characteristic Enterprises in
Became the first drafting entity for list for the Photovoltaic Manufacturing Zhejiang Province's Electronic Information
Awarded "Jiaxing City Patent Demonstration
the PV grid-connected microinverter Industry Standard Conditions Industry"
under the "Zhejiang Manufacturing" Enterprise"
group standard.
Designated as a "Provincial Enterprise Established the APsmart brand and Received the honor of "Top Photovoltaic Brand" Released the world's first fourth-generation Honored with the "Top Photovoltaic Brand" Cumulative global sales of MLPE
Research Institute" launched the RSD-S module-level from EUPD Research, France 20A high-current multi-unit micro-inverter DS3 award from EUPD Research, France, module-level power electronic products
disconnector with ASIC specialized chips and QT2 series products Netherlands and Brazil exceeded 5GW
Honored as "2016-2017 Honest Private
developed independently
Enterprise in Jiaxing City" Launched the world's first dual-unit Successfully listed on the A-share Sci-Tech Launch of 215kWh Air-Cooled Energy Storage
Continuously recognized as a "National module-level disconnector RSD-D with input Innovation Board, entering a new System and 215kWh/400kWh Liquid-Cooled
Participated in formulating the
High-Tech Enterprise" current up to 20A development platform Energy Storage Systems
national energy industry standard
Technical specification of photovoltaic The third-generation dual-unit Again honored with the "Top Photovoltaic Continuously recognized as a "National Released the EZ1 series micro-inverter with
grid-connected micro inverter single-phase micro-inverter YC600 Brand" award from EUPD Research, France High-Tech Enterprise" Wi-Fi + Bluetooth dual communication modes
received the honor of "Zhejiang
Manufacturing Excellence" Cumulative global sales of MLPE module-level
Cumulative global shipments of power electronic products exceeded 2GW
micro-inverters exceeded 1GW
Environmental, Social and
A Close Glimpse at APsystems Governance (ESG) Report
Ownership Structure APsystems' Global Footprint
Jiaxing Huineng Jiaxing Huiying
Other
TDG Holding Investment Investment
LING ZHIMIN LUO YUHAO GAO LIMIN PAN JIANQING Management Management Outstanding Global Warehousing Strategy
Co., Ltd Global Marketing Strategy Global After-Sales Support
Yuneng Technology Co., Ltd. Establishment of 9 subsidiaries Establishment of 5 local UID traceability and rapid
or branches worldwide warehouses worldwide response return and exchange
(Apsystems) service processes
Registered Capital: CNY 112 million Localized teams providing 24/7 Dual production base deployment Provision of comprehensive global
no-time-zone service domestically and internationally to multilingual online and offline
ensure global market supply training services
demands
Number of Subsidiaries or
Branches Worldwide
Storage Technology Co., Ltd.
Jiaxing Yuzhong New Energy
Energy Technology Co., Ltd.
Co., Ltd. with a 100% stake
Jiaxing Weihui Photovoltaic
USA Inc.with a 100% stake
Jiaxing APsystems Trading
Jiangsu Advanced Energy
Altenergy Power Systems
Altenergy Power System
Altenergy Power System
Taizhou APsystems New
Australia Pty Ltd. with a
Zhejiang Yingda Weixin
New Energy Co., Ltd.
Technology Co., Ltd.
Technology Co., Ltd.
Technology Co., Ltd.
Jingning APsystems
Zhejiang Chuangzhi
Electronic Co., Ltd.
Europe B.V. with a
with a 100% stake
with a 100% stake
with a 100% stake
with a 100% stake
with a 100% stake
with a 100% stake
with a 55% stake
分公司 & 仓储
Number of Local
Warehouses Worldwide
Altenergy Power Systems
Mexico S.A.De C.V with
a 99% stake
嘉兴昱创
Jiaxing Yuchuang New Energy
Technology Co., Ltd.
新能源有限公司
with a 100% stake
控股 100%
Ownership Structure Chart
Environmental, Social and
A Close Glimpse at APsystems Governance (ESG) Report
APsystems' Three Key Scenarios:
Micro-Storage、Residential Energy Storage 、Industrial
and Commercial Energy Storage
Application Scenarios
Provider of Full-Scene Solutions for Distributed
Photovoltaic + Energy Storage Applications
DIY Residential Use Residential Use Industry and Commerce
Photovoltaic
Single-phase: Single-phase: 3-phase:
EZ1 DS3, DS3D QT2, QT2D
QT2, QT2D
Cloud Interconnectivity Cloud Interconnectivity
+ AP EasyPower EMA Portal
Lake series Sea series Ocean series
Lake 1000 APstorage Ocean 200L
Energy Storage
River 1600 ELS-3/5K; Ocean 400L
ELS-7.6/9.6/11.4
ELT-6/8/10/12
APbattary
Product Footprint
Residential/Commercial Charging Stations
Environmental, Social and
A Close Glimpse at APsystems Governance (ESG) Report
Corporate Culture 2023 Major Events
APsystems signed strategic cooperation agreements with DBG Technology and TDG Technology,
Feb.
who will supply APsystems with inverters compatible with 8 million modules in 2023.
APsystems celebrated its 13th anniversary. With thirteen years of industry expertise, APsystems has
been dedicated to the research and industrialization of MLPE module-level power electronics,
Our Mission Our Vision Our Purpose undergoing its own transformation while growing in tandem with the times.
Mar.
APsystems signed a global distribution cooperation agreement with OSW, a photovoltaic storage and
Driving a Zero-Carbon Future To Be the Most Efficient Delivering Optimal Products and distribution service provider, both parties will embark on a comprehensive and mutually beneficial
Co-creating Intelligent Living Safe and Clean Energy Converter Exceptional Services to Our Customers collaboration in the future, leveraging their respective advantages to achieve cooperative success.
Apr. APsystems released its 2022 annual report and Q1 2023 report.
APsystems signed a strategic cooperation agreement with partner Xiamen Ampace Technology Co., Ltd.
Key Performance Both parties will deepen their technical cooperation in the field of residential energy storage system
battery packs, using this as an opportunity to promote the long-term development and strategic
deployment of related businesses.
Cumulative Global Sales of MLP Cumulative APsystems participated in the SNEC Shanghai exhibition, held the EZ1 new product launch event, and
May.
Module-Level Power Rlectronic Products Generated Power laid out the ecological landscape of the three major photovoltaic storage industries.
APsystems, in collaboration with multiple charitable organizations, donated 1,666 solar reading lights to
more than ten primary and secondary schools in remote mountainous areas in Sichuan and Guizhou
provinces, China.
Cumulative Carbon Dioxide Number of The APsystems' Social Responsibility Report 2022 was officially released.
Emission Reductions Systems
The industry's first micro-inverter technology video column, APsystems Micro Lecture Hall was launched.
APsystems, together with GoodWe Technology Co., Ltd. and several other units and institutions, jointly
initiated the Distributed Photovoltaic Storage Safety and Quality Improvement Initiative and signed the
Distributed Photovoltaic Storage Safety and Quality Improvement Initiative Proposal.
Invention Intellectual Property Countries and
Patents Rights Regions
Senior executives from St?ubli visited APsystems, engaging in in-depth discussions on future
cooperation strategies, aiming to empower mutual development.
Environmental, Social and
A Close Glimpse at APsystems Governance (ESG) Report
Accolades in 2023
Leading China's
Renewable Energy Asian Photovoltaic China Distributed
"Photovoltaic Top Innovation Photovoltaic Innovation
Photovoltaic inverter
Enterprise
APVIA Technology GREENPV Technology Most Influential PV
Achievement Award - Innovation Award in Inverter Company in
Enterprise Category 2023 2022
China Good Photovoltaic 2022 Annual China
- 2022 Annual PVBL Top 100 PV
High-Quality Brands in the World
Photovoltaic Inverter Residential/Commercial
Technology 2023
Inverter Brand
Breakthrough Award
Top 15 Chinese Solar
PVBL Most Innovative
Inverter Listed 2023 New Energy
PV Solar Enterprise
Companies on PV Power Pioneer Award
Award 2023
Plants 2023
Top Brand PV Inverters Top Brand PV Inverters Top Brand PV Inverters
France 2023 Latam 2023 Mexico 2023
Top Brand PV Inverters Specialized and New
Brazil 2023 Enterprises
Micro-inverter AQM SNEC Megawatt-level
Excellence Award 2023 Jade Award
Environmental, Social and
A Close Glimpse at APsystems Governance (ESG) Report
Sustainable Prosperity, Perpetual Development Sustainable Development Initiatives
Stakeholder Communicatio
The company prioritizes effective Stakeholders Key Concerns Communication Methods
communication with stakeholders by
Sustainable Development Goals
Fair Competition Institutional Inspections
identifying them, outlining their key Government and
Anti-Corruption Policy Implementation
Regulatory Agencies
concerns and specifying communication Business Ethics Information Disclosure
channels to ensure accurate and timely
Operational Performance
information dissemination. Moreover, the Information Disclosure and Shareholders' Meeting
Shareholders/
Management company adopts a responsive approach, Communication Mechanisms Regular and Temporary Reports
Management Philosophy SDGs Investors
Dimension Corporate Governance Investor Hotline
addressing stakeholders' concerns R&D Innovation
promptly and effectively to foster mutual Ethical Business Practices
trust and achieve mutually beneficial Customer Satisfaction Surveys
Product Quality
Customers Customer communication Channels
Corporate outcomes Customer Service
Information Security Risk Assessments
Robust Supervision Information Security and
Governance Privacy Protection
Governance as Priority
(G) Occupational Health and Safety Employee satisfaction
Compulsive and Forced Labor Employee activities
Employees
Compensation and Benefits Occupational Health Monitoring
Employee Training and Development Safety Production Management
Fair Trade Signing the “Supplier Corporate
Suppliers
Sustainable Supply Chain Social Responsibility Commitment”
Environmental
Environmental Conservation Community
Health and Safety Safety Training
Protection Social Welfare Social Welfare Activities
for Future Collaboration
(E)
Substantive Issue Analysis
The company has identified and
assessed the importance of Environmental
Industry Value Industrial Prosperity Information Disclosure Management
substantive ESG issues based on
(S) and Value Co-Creation Business Ethics
two dimensions: "importance to Occupational Health
and Safety R&D Innovation
the company" and "importance to Waste
Management
The Extent of Impact on Stakeholders
stakeholders". These issues have Energy
Management
been prioritized and confirmed, Employee Diversity
and Inclusivity Product Quality
guiding the company in setting Supplier
Management Management
goals and focusing on advancing Three-Tier Governance
Employee Rights Talent Development (Shareholders' Meeting,
Employee Well-being with ESG work effectively. Board of Directors, Supervisory Board)
and Training
and Interests
Boundless Rights and Interests Green
(S) Business Practices
Environmental Aspects Compliance Risk Control
Rights and Interests Protection of
Shareholders and Investors
Customer Rights
Social Aspects Intellectual and Interests Protection
Property Protection
Social Welfare
Social
Promoting Social Harmony Employee Bene?ts
Responsibility Governance Aspects
Through Philanthropy Initiatives
(S)
The Extent of Impact on the Company's Sustainable Development
Environmental, Social and
Robust Supervision, Governance as Priority Governance (ESG) Report
Robust Supervision,
Governance as Priority
Environmental, Social and
Robust Supervision, Governance as Priority Governance (ESG) Report
Governance Framework Shareholders' Meeting, Board of Directors, Supervisory Board
Company Organizational Structure and Responsibilities
Shareholders and Shareholders' Meeting
The Shareholders' Meeting serves as the company's governing body responsible for formulating and deciding on major
APsystems places a paramount emphasis on standardized corporate operations and has meticulously crafted a robust corporate
strategic, policy and management matters. Adhering to the Company Law of the People's Republic of China, the Rules on
governance system, ensuring an appropriate separation of ownership and operational rights. Throughout the reporting period, the
Shareholders’General Meetings of Listed Companies, the Rules Governing the Listing of Stocks on the STAR Market of the Shanghai Stock
company strictly adhered to pertinent laws and regulations, including the Company Law of the People's Republic of China, the Securities Law
Exchange and the Articles of Association, APsystems has established the Rules of Procedure for Shareholders' Meeting. The
of the People's Republic of China, and the Governance Code for Listed Companies. Concurrently, it complied with directives from regulatory
company diligently organizes and convenes the Shareholders' Meeting in compliance with regulations to safeguard
bodies such as the China Securities Regulatory Commission and the Shanghai Stock Exchange concerning corporate governance
shareholders' rights to information, participation and voting. During the reporting period, the company convened 1
practices by establishing a governance structure comprising Shareholders' Meeting, the Board of Directors, the Supervisory Board
and the management team. Each entity operates in concert, fulfilling distinct roles while synergistically reinforcing one another.
annual Shareholders' Meeting and 4 extraordinary Shareholders' Meetings, approving a total of 17 resolutions.
This collaboration has fostered a governance structure characterized by clarity of purpose, evidence-based decision-making,
robust oversight and seamless execution, thereby propelling the company's sustained progress and development.
Directors and Board of Directors
Shareholders' Meeting
In an effort to further standardize the deliberation and decision-making processes of the Board of Directors, and
Nomination Committee enhance the scientific and forward-thinking nature of board decisions, APsystems has formulated the Rules of Procedure
for Board Meetings, Independent Director Work System and Board Secretary Work Rules in accordance with the Company Law of the
People's Republic of China and the Articles of Association. The Board of Directors comprises 7 directors, thereby meeting the
Strategy Committee legal requirements for board composition.
Supervisory Board
Board of Directors
The Board of Directors has established four specialized committees: Audit, Nomination, Strategy and Compensation &
Compensation & Assessment
Assessment. All members of these specialized committees are directors who perform their respective functions in
Committee
compliance with the company's relevant systems, thereby regulating the company's operations, ensuring the rationality
Board Secretary and feasibility of decisions, and promoting the company's sustainable development.
Audit Committee
Performance
During the The Board of Directors The Board of Directors The Specialized The Collectively Reviewing
Securities Department General Manager Internal Audit Department reporting Meetings Resolutions Committee Meetings Proposals
period
Audit Committee: 4 meetings, Nomination Committee: 3 meetings,
reviewing 11 proposals reviewing 4 proposals
Strategy Committee: 3 meetings, Compensation & Assessment Committee: 1 meeting
reviewing 5 proposals reviewing 2 proposals
Management Department
HR & Admin Department
Operations Department
Marketing Department
Finance Department
Sales Department
Risk management
Supply Chain
Department
R&D Center
Supervisors and Supervisory Board
APsystems, guided by the stipulations set forth in the Rules of Procedure for the Supervisory Board has elevated its governance
standards to safeguard the lawful rights and interests of the company and its shareholders. The Supervisory Board
comprises 3 supervisors, including 1 employee representative supervisor. Each supervisor upholds a strong sense of
accountability to shareholders and carries out their responsibilities in strict adherence to legal statutes, regulatory
frameworks, and the Articles of Association. Functioning as the company's oversight mechanism, the Supervisory Board
conducts effective legal and compliance supervision over the company's financial affairs and the performance of its
Company Organizational Chart directors and senior management. Throughout the reporting period, the company convened a total of 8 meetings of
the Supervisory Board, during which 21 proposals were reviewed.
Environmental, Social and
Robust Supervision, Governance as Priority Governance (ESG) Report
Board Composition Diversity Risk Control Management
APsystems places a strong emphasis on and actively promotes diversity within its Board of Directors. The current board comprises
economics, accounting and business administration. They serve as a solid foundation for the company's stable development.
Notably, 2 directors hold doctoral degrees while 2 others hold master's degrees, providing robust intellectual support and strategic Adhering to the standards set by the Company Law of the People's Republic of China, the Audit Law of the People's Republic of China and the
guidance to the company's decision-making processes. Articles of Association, along with its associated guidelines, APsystems has established an Internal Audit System to strengthen internal
audit supervision of the company and its subsidiaries. Continuously, in accordance with various laws, regulations and regulatory
requirements, the company enhances its corporate governance mechanism, revises and optimizes risk control management
systems and internal control systems in a timely manner, effectively strengthening the normativity of corporate governance and
Name Type/Position Gender Tenure Age Education Area of Expertise safeguarding the legitimate rights and interests of the company and its shareholders.
The company's Audit Committee is responsible for leading and supervising internal and external audits. The internal audit
Ling Zhimin Director Male 2020.9.16 62 Post-doctorate Electronic Information organization is the Audit Department, which operates independently under the leadership of the company's Audit Committee,
conducts audits rigorously, closely monitors operational risks, and ensures the company's long-term stable development. To
protect shareholder interests, the company regularly supervises and audits the exercise of powers by senior management,
Luo Yuhao Director Male 2020.9.16 50 Doctorate Electronic Information major investments, financial fund-raising and organizational activities related to economic activities. As of the end of the
reporting period, the company's major decision-making and operations have been in good condition, with no major internal
control defects reported.
Qiu Zhihua Director Male 2020.9.16 58 Bachelor's degree Economics and Management
APsystems' Audit Mechanism
Pan Zhengqiang Director Male 2020.9.16 36 Master's degree Management
The company's directors and supervisors regularly organize internal oversight activities to
conduct systematic and standardized audits of the company's operational management.
Gu Jianru Independent Director Female 2020.9.16 50 Bachelor's degree Accounting These audits encompass areas such as financial matters, procurement, expenses, contracts,
and other key operational management aspects if necessary. The designated audit leader is
directly accountable to the company's shareholders, ensuring the independence of auditors
Zhou Yuan Independent Director Male 2020.9.16 57 Bachelor's degree Economics and Management and the objectivity of audit results. Upon identifying issues, they provide recommendations
Internal for corrective actions and conduct follow-up checks. The proficient execution of the internal
Audit Mechanism audit system has resulted in a progressive standardization of corporate management, leading
Shen Fuxin Independent Director Male 2023.9.16 59 Master's degree Industry Management to an effective control over diverse operational risks.
The company entrusts professional accounting firms for its annual financial audit. These audit
firms are selected based on their qualifications, expertise and lack of conflicts of interest with
the company. The audit results from recent years demonstrate the company's adherence to
regulatory standards and requirements set forth by relevant stakeholders.
Independent External
Audit Firm Annual Audit
Environmental, Social and
Robust Supervision, Governance as Priority Governance (ESG) Report
Tax Management Related-Party Transactions
The company places a high level of importance on tax management, adhering strictly To ensure the fairness, reasonableness and transparency of related party transactions,
to the relevant tax regulations such as the Accounting Law of the People's Republic of China. as well as to standardardize the company’s practice in related party transactions, and to
Clear guidelines are established for investment project approvals, settlement
Performance effectively mitigate related transaction risks, APsystems has developed the Related Party
management, cost accounting, expense reimbursements and accounts receivable Transactions Management System. This system is established in accordance with the
management, thus creating a robust financial framework conducive to effective tax relevant provisions of the Company Law of the People's Republic of China, the Articles of
During the
planning, risk mitigation and compliance. The appointment of the financial leader is Reporting Period Association and the specific circumstances of the company. It aims to standardize the
undertaken by the company's Board of Directors and requires shareholder approval, conduct of related party transactions by regulating the entities involved and the
The Company's approval procedures. By implementing this system, the company seeks to uphold the
ensuring the independence and integrity of financial operations. The financial leader Actual Tax Payment
holds accountability to all shareholders of the company and executes duties from both fairness and reasonableness of its business activities, enhance its corporate governance
financial and wealth management perspectives, thereby enhancing the overall
financial management proficiency of the company. The finance department regularly
CNY 177.89 million
structure, and protect the lawful rights and interests of the company and its
stakeholders effectively.
organizes tax training sessions for finance personnel to stay abreast of the latest
financial and tax regulations, mitigating tax-related risks. As of the end of the reporting
period, the company has effectively managed tax risks, and no instances of tax evasion
or non-compliance have been recorded.
Investor Relations
Shareholder Returns
Financial and Tax Training
During the reporting period, the company conducted training activities focused on financial and tax-related knowledge and APsystems is committed to a business philosophy of integrity and mutual benefit, prioritizing sustainable corporate development.
skills. Through methods such as explanations, demonstrations and discussions, employees gained in-depth understanding Complying with the Company Law of the People's Republic of China and other relevant regulations, the company continuously strengthens
of tax-related knowledge and skills, thereby enhancing their ability to apply this knowledge effectively and improving their its credit system and proactively safeguards the interests of all stakeholders.
practical operational proficiency. These training efforts were aimed at boosting the efficiency and quality of tax-related
work, providing better services and support for the company's tax activities. The company places significant emphasis on delivering returns to its shareholders, strictly adhering to the profit distribution
decision-making procedures outlined in the Articles of Association. To ensure equitable returns for both new and existing
shareholders, APsystems has formulated the Three-Year Dividend Plan for Shareholders After Initial Public Offering and Listing on the STAR
Market. This plan not only enhances transparency and operational feasibility in profit distribution decision-making but also
empowers shareholders to effectively oversee and evaluate the company's operations and profit allocation.
The Company's Cash Dividend Payout
Key Performance 2023
Dividends Per Share (CNY) 2.2
Total Cash Dividends Paid (CNY 10,000) 1,760
Proportion of Net Income Attributable to Shareholders of
the Listed Company in the Consolidated Financial Statements (%) 48.82
Note: The annual equity distribution for the year 2022 implemented in 2023 includes a capital reserve transfer of 4 shares
for every 10 shares held by all shareholders, in addition to cash dividends.
Environmental, Social and
Robust Supervision, Governance as Priority Governance (ESG) Report
Information Disclosure
APsystems rigorously upholds its obligations for information disclosure, as mandated by the Company Law of the People's Republic of
China, the Securities Law of the People's Republic of China, the Administrative Measures for Information Disclosure of Listed Companies, and the Rules
Governing the Listing of Stocks on the STAR Market of the Shanghai Stock Exchange. In alignment with these legal frameworks, the company Investor Communication Event
has formulated the Information Disclosure Management System, which delineates guidelines for periodic reporting, temporary reporting,
responsibilities in information disclosure management, disclosure procedures, and measures for confidentiality. This ensures the
In efforts to sustain continuous engagement with the capital market and facilitate investor understanding of the company's
authenticity, accuracy, timeliness and comprehensiveness of information disclosure, thereby reinforcing the management
operations and development, as well as showcase the inherent value of the listed company, APsystems collaborated with
proficiency in information disclosure affairs and ensuring equal access to information for all shareholders.
China Securities to organize the "I Am a Shareholder" Investor Visit to APsystems on November 23, 2023. Investors were
Adhering strictly to the requirements of the information disclosure system, the company regularly reports financial changes, invited to visit the company for in-depth tours and research. During the visit, several executives engaged in candid
operational status and relevant information to its executive directors and shareholders. Additionally, it publicly discloses information discussions and exchanges with investors, providing insights into the company's developmental journey, significant
to all investors, continually enhancing transparency and maintaining the openness of the company's operations. During the milestones, product showcases and business framework.
reporting period, the company did not face any penalties resulting from violations related to information disclosure.
In the interactive session, the board of directors, board secretary and chief financial officer addressed investors' concerns
in detail, providing comprehensive insights into the company's operations, strategic roadmap, and future development. This
event aimed to enhance investors' understanding of the company's overall situation, promote rational investment concepts,
and contribute to the continuous healthy development of the capital market.
Performance
Information Disclosure Methods
During the
Reporting Period
Shanghai Securities News:https://www.cnstock.com/
The media outlet and
Securities Times:https://www.stcn.com/ The Company Disclosed
corresponding website for
Regular Reports
the disclosure of the China Securities Journal:https://www.cs.com.cn/
company's annual reports Securities Daily: http://www.zqrb.cn/
Portions
The Company Disclosed
The stock exchange website Temporary Announcements
Shanghai Stock Exchange: http://www.sse.com.cn/
for the disclosure of the
company's annual reports
Portions
Investor Communication
APsystems continually advances its investor relations management through the formulation of the Investor Relations Management
System, which standardizes the company's investor relations practices. This system facilitates ongoing deepening of communication
channels with investors, fostering a better understanding and alignment with the company's vision. Such efforts lay the groundwork
Performance Briefing
for establishing a long-term, stable and mutually beneficial partnership, thereby maximizing corporate value and shareholder
returns.
During the reporting period, the company hosted a total of 3 Performance Briefings. Attendees included the Chairman of
The company places significant emphasis on investor relations management, continually strengthening connections and
the Board, Chief Financial Officer, and Board Secretary,etc. The briefing utilized interactive teleconferencing to present the
interactions with investors. Through diverse channels including investor hotlines, emails, the "Shanghai Stock Exchange
company's operational performance for the first half of the year and engage in detailed discussions with investors. This
e-Interaction" platform and investor forums, the company enhances communication and engagement with investors. It earnestly
event aimed to booster investor confidence in the company and foster the establishment of enduring collaborative
listens to investor feedback and diligently safeguards their legitimate rights and interests. During the reporting period, the company
relationships.
hosted 4 investor forums, conducted 1 on-site investor survey, received and responded to 400 investor calls, and provided
answers to investor queries 52 times through the Shanghai Stock Exchange e-Interaction platform, achieving a 100% response
rate to investor inquiries.
Environmental, Social and
Robust Supervision, Governance as Priority Governance (ESG) Report
Business Ethics
Leveraging Mechanisms for Ethical Practices
Party members and cadres actively promote a culture of integrity, embedding clean
The company places utmost importance on ethical business practices, strictly adhering to national laws and governance practices into every aspect of grassroots management activities and market
regulations concerning anti-bribery, anti-fraud and anti-extortion measures. In critical areas like procurement, operations. We diligently protect employees' right to information, encouraging their wider
specialized personnel are assigned to conduct rigorous monitoring, establishing a transparent operational participation to ensure that our efforts in Party discipline and clean governance yield
framework that invites public oversight and safeguards the company's ethical reputation. substantial results in practical terms.
Furthermore, the company upholds principles of fair competition, strictly complying with pertinent regulations
such as the Anti-Unfair Competition Law of the People's Republic of China and the Anti-Monopoly Law of the People's Republic
of China. By participating in market competition under equitable conditions, the company contributes to Promoting Ethical Conduct in Job Roles
fostering a fair and equitable business environment. We emphasize the concept of "dual responsibilities for one position" where employees are
expected not only to fulfill their job duties but also to uphold ethical self-discipline. Specific
integrity education programs are implemented for each job role, and a dynamic, multi-faceted
The company prioritizes anti-money laundering efforts as a vital task in upholding its corporate reputation and
system of preventive measures is established and enhanced to prevent and eradicate instances
ensuring financial security. Implementing a comprehensive anti-money laundering strategy not only benefits
of non-compliance and misconduct. This cultivates a work environment characterized by
the company's long-term sustainability but also makes a positive impact on broader societal efforts to combat
integrity and diligence, integrating ethical principles into the core of our corporate culture.
money laundering, thereby promoting the stability and integrity of financial markets.
In addressing corruption, the company adopts tangible measures to reinforce its anti-corruption initiatives. During the reporting period, the company rigorously upheld its integrity standards in personnel selection and employment,
This includes disseminating anti-corruption knowledge through various channels, enhancing employees' facilitating the effective implementation of an evolving integrity and compliance framework. Notably, there were no litigation
anti-corruption awareness, and preventing corrupt practices at their root. Specific measures undertaken incidents associated with corruption. Furthermore, the company achieved a signing rate of 93.55% for anti-commercial bribery
include: and integrity agreements with suppliers.
Environmental, Social and
Environmental Conservation for Future Collaboration Governance (ESG) Report
Environmental Conservation
for Future Collaboration
Environmental, Social and
Environmental Conservation for Future Collaboration Governance (ESG) Report
Emphasizing Green Management Green Social Initiatives
APsystems is dedicated to environmental conservation and actively conducts activities to promote green awareness and
Environmental Protection advocate for low-carbon environmental principles. With over a decade of experience in the solar energy industry, the company
upholds its corporate social responsibility and shows a strong commitment to public welfare endeavors.
Since its establishment, APsystems has been actively responding to global climate change and advancing the goals of "3060"
carbon peaking and carbon neutrality. Upholding the mission of "Driving Towards a Zero-Carbon Future, Co-Creating an
Intelligent Life", the company has identified and collected relevant environmental compliance obligations while conducting
regular assessments of compliance status. Lecture on Clean Energy in Photovoltaic Power Generation
APsystems is committed to a sustainable development path focusing on environmental protection, low-carbon strategies and
APsystems was invited to deliver an engaging and informative lecture titled Clean Energy in Photovoltaic Power Generation to
energy efficiency. Aligned with the principles of green development, the company adheres to national environmental protection
fourth-grade students at the international department of Peking University Experimental School (Jiaxing). The lecture
policies, guidelines and legal regulations. Environmental protection is a core consideration across its production outsourcing
aimed to deepen the students' understanding of solar energy's mysteries and the importance of energy conservation
model and research and operational management locations, ensuring minimal environmental impact.
and environmental protection. Through interactive activities such as hands-on crafts, the lecture also sought to nurture
The company places significant emphasis on environmental protection and strictly adheres to regulatory frameworks such as the students' ability to think critically and innovate.
the Environmental Protection Law of the People's Republic of China and Law of the People's Republic of China on Environmental Impact Assessment,
During the interactive sessions, APsystems conveyed the principles of green, low-carbon environmental protection and
thereby enhancing its environmental management capabilities. The company's main production outsourcing facilities have
ignited the students' curiosity and interest in scientific knowledge. This enjoyable and educational approach aimed to
achieved ISO 14001 certification for environmental management systems. During the reporting period, the company has not
foster the students' sense of belonging to environmental protection and science, encouraging them to become a
incurred any environmental regulatory penalties.
visionary, ambitious and responsible new generation.
Certificate of Environmental Management System for Manufacturing Outsourcing Facilities
The company actively responds to the Performance
During the reporting period
national green initiative by conducting
regular monitoring of pollutant The Company's Total The Total
emissions. Since its establishment, the Electricity Consumption Water Usage
company has not encountered any
environmental pollution incidents. kilowatt-hours tons
Environmental, Social and
Environmental Conservation for Future Collaboration Governance (ESG) Report
Expanding Green Business Initiatives Micro Inverters
APsystems is advancing the expansion of its green business initiatives through a multifaceted approach. This includes the The photovoltaic industry, a major propelling force in achieving global zero-carbon goals, holds immense value in energy
implementation of cutting-edge green technologies and the acceleration of intelligent green upgrades. These strategic measures deployment strategies. In this landscape, a new type of PV application has emerged - the DIY small-scale PV system. Leveraging
illuminate a transformative path characterized by enhanced quality, power and efficiency, thereby facilitating the company's the extensive expertise and seizing market opportunities, APsystems has introduced the "EZ1 Series Micro Inverter with Wi-Fi and
sustainable and high-quality development. Bluetooth dual communication modes". These systems no longer require professional installers to conduct on-site surveys,
propose solutions, or handle installation and construction. Instead, end-users can independently carry out DIY installation of the
power station.
Advancing the Establishment of a Controllable Intelligent Energy System
The launch of the EZ1 series marks another significant breakthrough in the micro-inverter field, simplifying the installation and
application of photovoltaic systems and transforming them into "smart homes", thereby promoting the penetration of
photovoltaics as a household appliance. This launch holds strategic importance for APsystems as it expands its product portfolio,
providing a novel solution for DIY small-scale PV applications. It also complements its comprehensive ecosystem strategy centered
around "distributed PV + energy storage", with micro inverters serving as the core technology.
From "Multiple Orientations” to "More Power Outputs” with APsystems Micro Inverters
In contrast to conventional photovoltaic systems, the APsystems micro inverter system utilizes a parallel circuit design with
Integrated Energy Intelligent Energy Digital Energy independent Maximum Power Point Tracking (MPPT) capability. This approach eliminates the "weakest link" issue,
significantly enhancing the effective roof area utilization. Even when PV modules are installed on roof surfaces with
different orientations, the system optimizes each module's output near the maximum power point, resulting in increased
Distributed Photovoltaics Integrated Photovoltaic Energy Big Data, Blockchain overall power generation. This technology resolves the challenge of balancing "multiple orientations" and "multiple
Storage and Charging installations", leading to improved power generation efficiency.
Distributed Wind Power Advanced Metering
Hydrogen Storage, Fuel Cells As shown in the figure below, the number displayed on each module represents the daily electricity generation. On a
particular day, the entire PV system generates 67.32 kWh of electricity. In contrast, if the system were using a traditional
string inverter, the power output of the six roof-mounted modules would be constrained by the lowest-performing module
in the string, generating only 1.98 kWh. Consequently, the system's daily power generation would be reduced to 59.4 kWh,
Energy Storage Systems nearly 8 kWh less than the micro inverter system. This represents a loss of over 13% in electricity generation. The
exceptional performance of the APsystems micro inverter has gained significant market recognition, positioning the
Integrated photovoltaic energy storage represent a significant market trend. By incorporating storage modules into the inverter project as a pivotal example of local low-carbon development.
system, it becomes possible to integrate functionalities such as grid-connected photovoltaic power generation and energy
storage stations. The company is strategically focusing on the research and development of core technologies in energy storage
transformation equipment, aligning with industry technological advancements. This effort is aimed at expanding the company's
business scope and identifying new avenues for profit growth. The company is actively researching and developing energy
storage products to meet the market demand for integrated photovoltaic energy storage. Key product developments include
AC-coupled energy storage inverters designed for low-voltage battery input. Notable projects already developed include "Smart
Energy Storage Systems Based on Microgrids", "AC Battery Multi-Function Inverter", "Mobile Power Photovoltaic Energy Storage
System" and "Three-Phase Grid-Connected and Off-Grid Inverter Charger",at the same time,Successful Development and Market
Deployment of 100kW/215kWh and 200kW/402kWh Energy Storage Products for Industrial and Commercial Systems.
Intelligent Disconnectors
Regarding intelligent disconnectors products, the company has developed expertise in 3 core technologies: high-integration
photovoltaic module disconnector control chip design, high-power dual-unit photovoltaic module disconnector control
technology and large-scale disconnector system application technology. Leveraging these core strengths, the company became
the second global manufacturer to introduce intelligent disconnectors compliant with Sunspec industry standards for the U.S.
market by the end of 2019. This achievement was made possible by the incorporation of independently developed intelligent
disconnector ASIC specialized chips, resulting in higher levels of integration and reliability.
Environmental, Social and
Environmental Conservation for Future Collaboration Governance (ESG) Report
Photovoltaic Project Construction
Building-integrated photovoltaics represent a significant form of distributed photovoltaicswith substantial growth prospects.
APsystems remains committed to innovation-driven empowerment, striving to deliver environmentally safe technical solutions. Haining
The company actively advances its technological innovation framework, tackling core technological challenges and transitioning
towards industrial applications. In alignment with the digitalization and intelligence trends, APsystems constructs an open The 495kW BIPV Carport Photovoltaic Project in Haining was connected to the grid in December 2022.The project primarily
ecosystem, focuses on addressing industry challenges, enhances innovation efficiency, and upgrades its offerings to create safer involves installations on the roofs of carports within the park. It operates in a mode of self-consumption with surplus
and more intelligent distributed photovoltaic solutions. electricity being fed back into the grid. The industrial park consists of numerous office and production buildings with high
electricity demand. Therefore, the green electricity generated by the photovoltaic carport not only powers charging stations
but also helps mitigate the overall electricity demand of the park. Compared to traditional string inverter systems under
"PV Curtain Wall Adaptability Research" Symposium
similar conditions, the QT2D can generate an additional 5% to 25% of electricity, resulting in clear financial benefits and a
continuous supply of green electricity for the park.
On July 24th, a joint announcement from seven Chinese ministries introduced the Green Building Creation Action Plan, which
targets a green building share of over 70% in urban new constructions by 2022. The plan mandates local governments to
draft action plans and set objectives within the stipulated timeline. Given that China's building sector accounts for one-third
of the nation's total energy consumption, Building-integrated Photovoltaics (BIPV) emerges as a pivotal approach to meet
green building standards, positioning it as a key market segment for photovoltaic applications in the future.
In response, APsystems convened a symposium focusing on the dissemination and promotion of BIPV, with a specific Lian Guan Textile
emphasis on PV curtain walls. During the event, the presenter provided an extensive overview of APsystems' research and
Lian Guan Textile's 1.1MW industrial and commercial photovoltaic project was grid-connected in December 2022. Lian Guan
industrialization efforts in MLPE module-level power electronics technology. They also discussed the company's overseas
Textile is a renowned local textile factory with multiple production workshops and a significant amount of machinery and
expansion strategy, highlighting the establishment of subsidiaries in regions like the United States, Europe, Australia, and
equipment, resulting in high energy consumption due to its high load density and substantial electricity usage. This project
South America. This global presence has positioned APsystems as the world's second-largest supplier of micro-inverter
exclusively employs APsystems' QT2D micro-inverters, providing an output power of up to 3﹐520W, making it the highest
products, contributing to a sales and service network across the globe.
power micro-inverter in the industry. Furthermore, the QT2D supports three-phase balanced AC output, further enhancing
power quality, lowering system costs, and offering a highly cost-effective advantage.
APsystems' Photovoltaic Project Construction Status
KinCony
KinCony's 277.2 kW industrial and commercial photovoltaic project was Shenzhen
grid-connected in June 2023. This project ingeniously integrates various areas
such as factory carports and roofs, including concrete roofs, colored steel tile The 233kW Photovoltaic Charging Station Project in Shenzhen, connected to the grid in June 2023, is a collaborative effort
roofs and BIPV photovoltaic carports, maximizing the available installation area between APsystems and Shell Group. The project encompasses various applications such as rooftop photovoltaics and
and achieving full utilization of space. The project exclusively employs BIPV carport photovoltaics, all of which utilize APsystems' 20A high-current high-power micro-inverter QT2D.
APsystems' QT2D micro-inverters with an output power of 3,520W, seamlessly
The photovoltaic system provides a continuous supply of green electricity for the daily operations, vehicle charging and
integrating green energy into its development and realizing low-carbon goals
nighttime lighting of the charging station. It effectively offsets the station's electricity consumption through photovoltaic
through technological innovation.
power generation, thereby contributing to the development of integrated photovoltaic energy storage and charging
systems. This initiative serves as an exemplary demonstration for the region's pursuit of the "dual-carbon" goal and
upholds the principles for green development.
Yanguan Town
The 250.8kW Yanguan Rural Clustered Residential Photovoltaic Project , which
was connected to the grid in June 2023, features the exclusive use of
APsystems' latest generation 20A high-current, high-power micro-inverter
QT2D. This project spans multiple areas and encompasses various types of
housing constructions, with a total of 57 installations. APsystems' QT2D
micro-inverter possesses a modular design that is plug-and-play, ensuring ease
of installation and optimal space utilization while accommodating different
installation orientations and angles. Its one-to-eight connection method allows
for simultaneous connection to 8 high-power modules, significantly reducing
the per-watt cost and delivering outstanding cost-effectiveness.
Haining Lian Guan Textile Shenzhen
Environmental, Social and
Environmental Conservation for Future Collaboration Governance (ESG) Report
Philippines Seattle
The 200kW commercial and industrial photovoltaic project in the Philippines was connected to the grid in 2022. This Relying on the architectural features of the apartment building,the 229kW residential photovoltaic project. Utilizes over 300
project exclusively utilizes APsystems' latest generation 20A high-current micro-inverter DS3. All photovoltaic modules are APsystems micro-inverters and 622 photovoltaic modules, installed on various areas such as walls, balconies and rooftops.
installed on the rooftops of the enterprise. The micro-inverter boasts a unique feature of naturally lacking high DC voltage, Since its operation, the power station has been able to generate approximately 210,000 kWh of electricity annually,
which effectively tackles fire hazards associated with the DC side of photovoltaic systems. It complies with the safety providing a continuous source of clean energy. Furthermore, the APsystems micro-inverter system, designed with a full
standards specified in the Philippine Electrical Code 2017 for distributed photovoltaics, particularly in terms of rapid parallel circuit, stands out for its inherent advantages, including no direct current high voltage, ensuring compliance with
shutdown functionality for rooftop photovoltaic stations. This ensures utmost safety in rooftop photovoltaic installations. American NEC standards 2017, 2020 and 2023 (690.12). This design effectively prevents potential fire hazards and other
With its emphasis on safety-centric product design, the micro-inverter is exceptionally well-suited for distributed safety accidents, thereby contributing to security for apartment buildings located in the bustling city.
photovoltaic applications in commercial and industrial settings with stringent safety requirements.
Brazil
Canada The 22.62 kW residential photovoltaic project in Brazil was connected to the grid in December 2022. During the design and
construction phases of the project, measures were taken to maximize the utilization of the rooftop area. This involved
The 122kW commercial and industrial photovoltaic project in Canada was connected to the grid in 2016. The entire project
installing the photovoltaic system across roofs facing seven different orientations, employing exclusively micro-inverter
utilizes APsystems' micro-inverters. The Cheese facility consists of a multitude of machinery and equipment with a high
products from APsystems. In actual operation, the micro-inverters played a crucial role in mitigating the "weak link" effect
load density and substantial electricity consumption. APsystems' micro-inverters are designed with a full parallel circuit,
within the system, thereby reducing the degraded performance of multi-orientation setups and enabling efficient power
boasting the inherent advantage of being free from high DC voltage, thus ensuring ultimate safety in power station
generation across all roof surfaces.
operations. Furthermore, they feature Maximum Power Point Tracking (MPPT) functionality, eliminating the "weak link"
effect in system operation and reducing power generation losses. These attributes empower the processing of dairy
products like cheese, contributing to the enterprise's green and sustainable development.
New Jersey, USA
The 108 kW photovoltaic project at the WaWa gas station in the United States was connected to the grid in 2019. WaWa,
Mexico
a renowned fuel service provider in the US, maintains stringent safety standards at its gas stations. The decision to opt
for APsystems micro-inverters by both WaWa and the project's construction entity was driven by their inherent safety
The 19.62kW commercial and industrial photovoltaic project in Jalisco, Mexico, was connected to the grid in 2022. The
advantages, notably the absence of high DC voltages during system operation. This feature effectively eradicates the fire
project was installed and constructed by a local experienced partner of APsystems and utilizes APsystems' micro-inverters
risk associated with high DC voltages in photovoltaic installations. Moreover, the green electricity generated by the
DS3D. With its robust product capabilities, DS3D provides a high-quality green solution for the low-carbon transformation
photovoltaic system continuously powers various electrical facilities at the gas station, leading to not only energy
and development of high-energy-consuming enterprises. Taking into account safety, power generation capacity and
conservation and emission reduction but also substantial savings in electricity costs. This project exemplifies a harmonious
intelligent operation and maintenance, DS3D ensures that the photovoltaic power station becomes a valuable asset for
blend of ecological, social, and economic benefits. The successful commissioning and reliable operation of this project
the enterprise, bringing continuous economic benefits. This power station also serves as a typical green project combining
have instilled confidence in WaWa regarding future photovoltaic gas station projects. It serves as a pivotal reference point
photovoltaics with the commercial and industrial sectors in the local area, demonstrating and promoting the development
for the development of nearly 100 photovoltaic gas stations with a combined capacity of approximately 10 MW in the
of commercial and industrial photovoltaics in the region.
forthcoming phases.
Philippines Canada Mexico Seattle Brazil New Jersey, USA
Environmental, Social and
Environmental Conservation for Future Collaboration Governance (ESG) Report
Sustaining Green Operations Waste Disposal Practices
The company's office waste management adheres to the principles of waste reduction, resource recovery and environmental
The company upholds the philosophy of "promoting environmental awareness and advocating for a green lifestyle", actively safety. Through initiatives such as waste segregation and recycling of obsolete equipment and electronic devices, efforts are made
implementing practices such as "conserving water, saving energy and reducing paper usage" in its daily office operations. It is to minimize waste generation, promote resource circulation, protect the environment, and achieve sustainable development.
dedicated to the harmonious development of the enterprise and the environment, adhering strictly to laws and regulations such
Additionally, the sanitation company conducts daily scheduled waste collection in the park area and employs either landfilling or
as the Environmental Protection Law of the People's Republic of China. Utilizing the ISO14001 environmental management system standard
incineration methods to dispose of the waste appropriately.
as a foundation, the company has advanced its environmental management work that seamlessly integrates green development
into its daily office practices.
Green Office Practices
Ensuring the quality of daily work while minimizing the consumption of disposable office supplies is integral to our commitment
to environmental protection. We strive to make "green" the predominant theme in our company's operations, demonstrating our
dedication to environmental awareness and sustainable development. Through strategies such as double-sided printing,
transitioning to electronic documents whenever possible, and formulating a thoughtful consumables procurement plan, we actively
reduce material consumption and conserve resources.
Energy Conservation
Optimal Temperature Settings:Set cooling temperatures not lower than 26°C
during summer and heating temperatures not higher than 20°C in winter. Waste Segregation
Sealed Environment with Air Conditioning: Keep office doors and windows
closed while using air conditioning to maximize its efficiency. If ventilation is
necessary, turn off the air conditioning system to prevent wasteful practices
of using air conditioning with windows and doors opened.
Recycling and Disposal of Obsolete Equipment and Electronic Devices
Efficient Usage by Shutting Down When Unoccupied: Adhere to the "user
responsibility principle", where individuals are accountable for turning off the
Green Air air conditioning system when leaving the premises, ensuring a "stop when
Conditioning Practices The applicant completing the OA equipment scrapping form. Approval from the
vacant" policy.
Disposal finance department is required before the equipment can be scrapped. The applicant
Procedure then coordinates with the warehouse and finance department to jointly manage the
Optimal Lighting Layout Design: Implement a well-thought-out lighting layout scrapping process.
that maximizes the use of natural light and complements it with artificial
lighting, reducing the overall need for artificial illumination.
Turn the lights off when leaving. avoid leaving lights on during daylight hours, Disposal Engage professional and certified third-party services for
using long-lasting or permanent lights unnecessarily, or leaving lights on in Solution centralized recycling.
unoccupied areas. Minimize both the duration and quantity of lighting usage,
and remember to turn off lights when leaving a room.
Adoption of Energy-Efficient Lighting Fixtures: When choosing lighting
equipment, prioritize factors such as luminous efficiency, lifespan, color Metal (iron, aluminum, and copper-containing waste
Green Lighting
Waste circuit boards): Segregate and classify accordingly.
rendering index and energy consumption. Strive to reduce energy usage while
Practices Disposal
maintaining optimal lighting quality. Circuit boards: Subject to physical crushing.
Environmental, Social and
Industrial Prosperity and Value Co-Creation Governance (ESG) Report
Industrial Prosperity
and Value Co-Creation
Environmental, Social and
Industrial Prosperity and Value Co-Creation Governance (ESG) Report
Research and Development (R&D) Innovation
The company has established a market-driven independent research and development model, focusing on innovative
advancements in hardware circuit topology, software control algorithms, communication and big data processing technologies.
This approach has led to successful development of module-level power electronics products such as micro-inverters and
intelligent disconnectors, which have been commercially applied in distributed photovoltaic power generation systems and smart
R&D innovation serves as a pivotal engine for enterprises to consistently maintain market competitiveness. This process
grids. Furthermore, the company adopts a project-based R&D approach that integrates market feedback and suggestions from
encompasses the entire course from fundamental theoretical exploration to tangible product development. Amidst swiftly evolving
various departments. Projects undergo technical feasibility analyses before initiation, and comprehensive planning during design
market landscapes, companies persistently allocate resources towards research & development and innovation initiatives to align
reviews ensures optimal levels of product performance, quality, cost-effectiveness and R&D efficiency.
with market demands and sustain their leadership position.
Research and Development (R&D) and Innovation Management System
Research and Development (R&D) Process
The company deeply understands that technological innovation is the key driving force shaping the future. It remains steadfast in
its core principle of innovation-driven development and is dedicated to establishing a robust, systematic and efficient R&D
innovation system. By attracting industry elites, cultivating top-tier teams and unlocking innovative potential, the company aims to
significantly enhance its innovation capabilities and core competitiveness.
R&D Project Design Input Design Input Design Output
Start
Initiation Review
Leveraging its expertise in semiconductor and chip technologies, the company is advancing its R&D efforts in module-level power
electronics and chips, thereby enhancing business independence and product competitiveness. Simultaneously, it is focusing on
upgrading distributed photovoltaic power generation system technologies to reduce micro-inverter costs and improve market
acceptance. The company's inverter products are already leading the industry by 2-3 years, with the 20A high-current product
setting an industry benchmark. In the realm of intelligent disconnectors, the company has independently developed dedicated
R&D Design Development Product Design Output
control and algorithm ASIC chips, enhancing product integration and reliability, and leading in domestic shipments. The company's End
Confirmation Verification Prototype Review
comprehensive energy storage offerings include mass-produced single-phase residential energy storage series sold in Europe and
America.
Zhejiang Province APsystems
Micro-Inverter Research Institute
The company possesses an internationally acclaimed R&D team that is anchored in advanced research principles and is dedicated
to independent research and innovation. This team comprises individuals with robust professional backgrounds and extensive
industry experience, providing a solid talent foundation for the company's R&D innovations in technology and product
development. In 2014, they were recognized as the "Key Enterprise Technology Innovation Team" by Jiaxing City. As of the end of
the reporting period, the team comprises 210 R&D professionals, constituting 51.98% of the total workforce, among which 190
have bachelor's degrees or higher, representing 90.78% of the technical staff.
Experts Design Technical Operations
Office EMA
Committee Department Department Department
To streamline R&D project management and inspire
proactive engagement among R&D personnel, the
R&D Data
company has established the R&D Center Project
Assessment and Reward System. This system ensures the
high-quality, efficient and cost-effective completion of
the company's R&D tasks. Annually, the company
Intellectual Property Office
Technology Projects Team
Technical Services Team
Structural Design Team
Communication Team
conducts a comprehensive performance evaluation
Management Office
Procurement Team
Certification Team
Comprehensive
Strategic Office
Archives Room
Finance Office
encompassing three main areas: goal management
Inverter Team
Testing Team
Quality Team
Group Three
Group One
Group Two
ECU Team
(40%), project execution (20%) and individual behavior R&D Expenditure Ratio of R&D Expenses
to Company Revenue
and functions (40%). This comprehensive and impartial
evaluation process assesses the contributions of each
R&D professional and offers corresponding rewards,
CNY 104.71 million
thereby promoting R&D innovation and advancement
within the company.
Research and Development (R&D) Organizational Chart
Environmental, Social and
Industrial Prosperity and Value Co-Creation Governance (ESG) Report
R&D Achievements and Honors Industry-Academia-Research Collaboration
With a focus on MLPE module-level power electronics technology for over a decade, the company remains steadfast in its Through a strategic partnership with Southern Airlines, the company has jointly developed "High-Frequency Planar Transformers
commitment to technological innovation as its core development strategy. We never cease in our efforts for evolving, starting from and Planar Power Inductors for Photovoltaic Micro Inverters". This collaborative effort has resulted in a significant technological
pioneering multi-unit micro-inverter architectures to developing micro-inverter products tailored to the needs of intelligent grid breakthrough for the company's inverter products, particularly in terms of achieving high energy density and efficiency.
dispatch. We have also introduced 20A high-current and high-power micro-inverter products, consistently positioning ourselves at Furthermore, both parties have successfully addressed challenges in "Design and Control Technology of Three-Phase Energy
the forefront of technology. These groundbreaking advancements provide our users with safer, more efficient and intelligent Storage Systems", thereby enhancing the completeness of the company's energy storage machine product line.
photovoltaic products, contributing positively to the transformation and sustainable development of the global energy structure.
The company is steadfast in its commitment to maintaining and elevating product market competitiveness to meet the evolving
During the reporting period, the company increased its R&D investment and successfully introduced six new core technologies. demands of the market. Moving forward, the company will actively seek strategic collaborations with domestic and international
This expansion further enhances our technical capabilities and widens our application domains, providing robust support for research institutions, higher education establishments and global enterprises. Through continuous exploration and the integration
ongoing product innovation and enhancing our competitiveness in the market. of cutting-edge technologies and research outcomes, the company aims to reinforce its technical capabilities.
Self-Application
Microgrid installation encompasses complex procedures that can be challenging for users to self-install. The company Intellectual Property Protection
harnesses novel technology to simplify this process, enabling seamless device control through smartphone applications,
Scenario Control The company rigorously complies with intellectual property laws and regulations and has implemented a comprehensive
thereby streamlining operations. Additionally, it offers self-installation configuration capabilities to promote the integration of
Technology
solar energy storage products into smart homes. intellectual property management system. Internally, the company continually educates its employees on intellectual property
knowledge to enhance their awareness of the intellectual property protection. Furthermore, the company actively engages with
Low-Voltage Hybrid inverter systems pose risks with high-voltage inputs, while their low-voltage versions suffer from reduced efficiency the market by advocating the importance of intellectual property protection to clients and partners through various channels such
Hybrid Inverter and reliability. The company employs third-generation wide-bandgap semiconductor technology alongside advanced control as seminars and discussions. The company is committed to playing a positive role in advancing intellectual property protection
Control Technology algorithms to elevate efficiency at lower voltages, optimize operational modes and enhance system reliability.
processes and aims to contribute to fostering an environment that respects and safeguards intellectual property.
Conventional micro inverters often adopt a two-stage topology, resulting in high costs and decreased power density.
Single-Stage Intellectual Property Protection Measures
Series-Resonant Micro Leveraging resonance technology for soft-switching capabilities, the company achieves heightened efficiency and power
Inverter Control density. This innovative approach facilitates the development of a more compact single-stage micro inverter, effectively
Technology addressing the challenges associated with two-stage micro inverters. Unified declaration, management and maintenance of intellectual property, including patents, software copyrights and trademarks, with a particular focus on
promptly filing for innovative points and technological achievements resulting from the company's product development and technological innovation activities.
Commitment to non-infringement of others' property rights, refraining from using patented technologies owned by others, manufacturing, using, selling, or
Design and Simulation Prior to the construction of a photovoltaic power station, there is a need for professional design and evaluation, a process
Technology for disseminating counterfeit products, and avoiding counterfeiting or imitation of others' trademarks, product identifiers and designs.
that is both complex and costly. The company employs image processing, simulation and virtualization technologies to enable
Integrated Photovoltaic
Power Stations rapid online design and virtual presentation of power stations, resulting in the generation of simulation evaluation reports. Vigorous opposition to illegal activities that infringe upon others' property rights, actively reporting any infringements involving property rights, and cooperating
actively with governmental efforts to restrain, investigate and combat property rights violations.
The integration technology for string energy storage cabinet features a diverse range of functional modules, offering flexible Participation in public awareness campaigns for intellectual property rights protection, collaborating
Integration Technology
design options suitable for various operational scenarios. Through the adoption of specialized connection methods, we with stakeholders across society to promote the healthy and sustainable development of the
for String Energy
enhance the discharge capacity of battery cells and optimize economic viability of the system. This integrated system intellectual property industry.
Storage Cabinets
ensures cluster-wide management, ensuring consistency and facilitating scalability or supplementary charging.
Implementation of Intellectual Property and Confidentiality Agreements, as well as Non-Compete Agreements,
with employees.
The string energy storage solutions offer flexible configuration options and streamlined installation procedures, reducing
String Inverter
construction complexity and land usage. By avoiding the performance degradation associated with battery parallel
Control Technology
connections, the system reliability has been strengthened.
To stimulate innovation vitality, propel technological advancement,
The company is recognized as a high-tech enterprise and was officially accredited by the Ministry of Industry and Information
and strengthen the cultivation, maintenance and application of Performance
Technology in May 2016 as meeting the Photovoltaic Manufacturing Industry Standard Conditions (Fifth Batch). It has also been honored
proprietary intellectual property, while harnessing the pivotal role As of the end of the reporting period
with prestigious titles such as "National Electronic Information Industry Enterprise with the Greatest Development Potential" and
of the patent system in driving enterprise development, and to
"Zhejiang Province Patent Demonstration Enterprise". Furthermore, the company has established institutions including the Zhejiang Invention Utility Design Software
clarify the rights and interests relationship between employees' Patents Model Patents Patents Copyrights
Province APsystems Micro-Inverter Research Institute, Zhejiang Province Enterprise Technology Center and Zhejiang Province
inventive achievements in research and other innovative activities
High-Tech Enterprise Research and Development Center.
and the company, the company has formulated the Patent Items Items Items Items
Application and Reward/Penalty Measures. This framework is
based on relevant provisions of the Law of the People's Republic of China During the reporting period
on Science and Technology Progress, the Patent Law of the People's Republic
New Utility Software
of China and the Civil Code of the People's Republic of China, combined Invention Patents Model Patents Copyrights
with the company's specific circumstances. It aims to incentivize
and safeguard innovative achievements, injecting a steady stream Items Items Items
of innovation-driven dynamics into the company's long-term
development.
Certificate of Honor
Environmental, Social and
Industrial Prosperity and Value Co-Creation Governance (ESG) Report
Propelling Industry Development
APsystems not only prioritizes its own growth but also strives to collaboratively advance the industry with upstream and downstream In a effort to enhance communication and collaboration with industry counterparts, the company has gained membership with 13
enterprises. The company actively engages in formulating 3 certification technical specifications and 16 national, industry, or group industry associations spanning diverse sectors. These associations focus on areas such as technical exchange, market promotion,
standards. Notably, the company took the lead in drafting the PV grid-connected microinverter group standard. These standards not only and policy research. Through these partnerships, the company remains abreast of industry dynamics and regulatory shifts, engages
standardize industry practices and drive technological progress but also offer robust support for industry upgrading and in meaningful exchanges and partnerships with fellow industry players, and collectively fosters industry development.
international competitiveness. Serving as a pivotal force for industry development, the company has made substantial contributions Simultaneously, leveraging these association platforms enables the company to broaden its influence, increase visibility, and further
to the flourishing of the sector. elevate its position within the industry.
No. Standard Name Standard No. Standard Type No. Association Name Association Level Position
Technical Requirement and Test Method of Certification Technical
Grid-connected PV Micro Inverter Specification
Technical Requirements for Electrical Safety Design of Certification Technical
Residential Photovoltaic Grid-Connected Power System Specification
Testing and Evaluation for Grid Connected Certification Technical
Residential PV System Specification
Technical Specifications for Photovoltaic New Energy Chamber of Commerce of All China Federation
Grid-Connected Micro Inverter
Technical Specification of Photovoltaic Module Zhejiang Solar Energy Industry Association
Power Optimizer
Distributed Photovoltaic Power Grid-Connected Inverters Group Standard 6 Guangdong Solar Energy Industry Association Provincial Member Entity
Technical Specification of Residential Distributed Henan New Energy Industry Development Alliance
Photovoltaic Grid-Connected Power System
Residential String-Type Photovoltaic Hebei Photovoltaic New Energy Chamber of Commerce
Grid-Connected Inverters
Technical Specifications for Documentation, Inspection Jiangsu Renewable Energy Industry Association
and Testing of Grid-Connected Photovoltaic (PV) System
Acceptance Specification of Building Integrated Jiangxi Energy Association Photovoltaic Branch
Photovoltaic Systems
Commercial and Industrial String-Type Photovoltaic Jiaxing Photovoltaic Industry Association
Grid-Connected Inverters
Application Procedures for Photovoltaic Hangzhou Solar Photovoltaic Industry Association
Building Technology
Photovoltaic Grid-Connected Micro Inverter Group Standard 13 PGO - Photovoltaic Green-ecosystem Organization Industry Member Entity
Assessment Requirements for Green Factory in
Photovoltaic Inverter Manufacturing Industry
Determination of Power Generation System for
Photovoltaic Building
Green and Low-Carbon Product Evaluation Specifications
for Photovoltaic Grid-Connected Micro-Inverters
Photovoltaic Power Generation System Inverter Product
Testing Specifications
Environmental, Social and
Industrial Prosperity and Value Co-Creation Governance (ESG) Report
Product Liability Product Lifecycle Management
Enhancing product liability awareness and ensuring product quality are indispensable responsibilities of the company. Product APsystems upholds the principle of "zero-defect production, zero-acceptance of defects and zero-delivery of defects". To achieve
liability not only impacts the company's integrity and reputation but also plays a critical role in maintaining market order and this, the company has established and implemented Quality Assurance Management Procedures and Corrective and Preventive Action
safeguarding consumer rights. A responsible enterprise should consistently prioritize product quality to ensure consumer safety Control Procedures. A stringent quality inspection process has been established, with dedicated quality inspection personnel. These
and protection of their rights. procedures ensure that every micro-inverter product undergoes stringent quality inspection processes, including Automated
Optical Inspection (AOI), Functional Testing (FCT), Aging Testing. Additionally, advanced management methodologies such as
"Kanban Management", "5S Principles" and "Six Sigma Principles" are employed to further enhance product quality and reliability.
Quality Management System
APsystems upholds the quality policy of "technological innovation, continuous Full Lifecycle Quality Management Process
improvement, excellent quality and customer satisfaction", striving to deliver
exceptional products and services to its customers. The company focuses on core
Management Process
areas such as research and development, design and market sales, while product
manufacturing is conducted through outsourcing. To ensure the quality and
consistent supply of outsourced products, the company meticulously selects System Planning Performance Measurement & Improvement Analysis
outsourcing partners, taking into account their qualifications, credibility and
technical capabilities.
Furthermore, the company has established a comprehensive quality management Product Realization
system, including protocols such as Outsourcing Management Procedure and Process
Inspection Specifications to standardize the outsourcing process, personnel allocation,
Product Monitoring
Material Planning
testing procedures, packaging and other aspects. Through close collaboration with
Quality Control
Input Output
Development
Measurement
Requirement
Management
Satisfaction
Production/
Preparation
Warehouse
Purchasing
Realization
Customer
Customer
Protection
Contract
Incoming
outsourcing partners and stringent control over quality and processes, the
Delivery
Material
Review
Product
Product
Design
Service
company achieves complete monitoring of critical processes throughout the
outsourcing chain. As of the end of the reporting period, the company has
obtained ISO9001 quality management system certification. Quality Management System Certification
Supporting Process
In an effort to ensure the smooth implementation and effective operation of the quality management system, the company has
established a robust organizational structure for quality management. At the top of this structure is the CEO, who serves as the
highest management authority overseeing the quality management system. The vice operating officer is designated as the primary Human
Document the
Nonconforming Supplier Gauge Environmental Facility Tooling Information
representative of the quality management system, responsible for coordinating, monitoring and driving quality management Product Management Management Management Management Management Resource
Management Document Record
Control
initiatives across the organization. Additionally, the Quality Supervisor plays a crucial role in providing in-depth management and
guidance in key areas such as quality assurance, supplier quality, process quality and quality control.
SP MP COP
QMS Top Management
CEO
QMS Management
Representative Quality Control Process for New Product Production
Operation VP
Quality Director New Data Trial
Product Preparation Trial Production Quality Compilation Production DFM
Launch Initiation Production Process Data and Summary Output
Meeting Startup Tracking Recording Analysis Meeting
Quality Assurance Supplier Quality Process Quality Quality Control
Organizational Structure for Quality Management
Environmental, Social and
Industrial Prosperity and Value Co-Creation Governance (ESG) Report
In terms of outsourcing management, the company employs a stringent process to control product quality. It provides outsourcing
Non-Conforming Product Management
partners with part drawings and proprietary control algorithm software that is encrypted. Outsourcing partners then proceed with
hardware assembly and processing based on the provided part drawings, followed by transferring the control algorithm software
into the hardware through IC programming.
The company has implemented rigorous procedures for Non-Conforming Product Control and Product Recall Management to ensure
The company utilizes advanced production management technologies and has established the Product Identification and Traceability product quality. In case of any potential non-conforming products, the company promptly follows the prescribed procedures and
Management Procedure. Through automated Shop Floor systems control and unique UID numbers, every product's production records notifies relevant parties of the product information promptly. Should a batch of delivered products be found non-conforming in
are traced from production to warehousing, ensuring complete traceability throughout the process. All testing data is automatically quality, we will promptly initiate the product recall procedure to comprehensively and swiftly control the affected finished
uploaded to the database, and critical processes are conducted using automated testing equipment, allowing real-time monitoring products, thereby mitigating or preventing losses for the company and stakeholders.
by management personnel and effectively mitigating the risk of missed tests and reducing the impact of human factors on quality.
Responsibilities of Each Department
Shipment General Manager
Management Responsible for making decisions regarding the initiation of the product recall procedure
System and approving the recall plan.
Production After-Sales Operations Department
APsystems
Management Management The Quality Supervisor leads the product recall process and is responsible for organizing
System Traceability System relevant personnel to implement the recall, as well as gaining an understanding of the
System product recall status.
Warehousing and logistics team is responsible for tracking the status of products in transit
and conducts inspections of inventory for identified problematic batches.
EMA
Monitoring Quality team tracks the quantity, customer information, batch numbers and other relevant
System information related to problematic batches; organizes departments to develop and
implement emergency measures as necessary; tracks and oversees the progress of the
product recall work.
Sales Department
Responsible for conveying customer complaints and promptly informing relevant personnel.
Handles communication and liaison with customers during the recall process.
Risk Management Department
Responsible for transmitting customer information relevant to the recall process.
Other Departments
Participates in and collaborates to ensure the successful completion of the product recall
process.
SMT Production Line DIP Production Line FA Production Line
Environmental, Social and
Industrial Prosperity and Value Co-Creation Governance (ESG) Report
Customer Rights and Interests
Digital Management System
Customer trust and satisfaction are foundational to sustainable development for the enterprise. Safeguarding customer rights and
interests isn't just a legal mandate but a critical aspect of earning market share and fostering a positive reputation. With a
customer-centric approach, the company ensures that customer rights remain inviolable, aiming to cultivate long-term trust and Salesforce is an exceptional Customer Relationship Management solution that effectively facilitates communication
support for sustained growth. between enterprises and customers. The company primarily utilizes Salesforce for customer service management. By
leveraging Salesforce, the customer service team gains a comprehensive understanding of customer needs, enabling
them to deliver precise and efficient services. Furthermore, Salesforce's powerful data analytics capabilities allow the
Customer Service System company to gain in-depth insights into customer behavior, thus providing robust support for future business strategies
and decisions.
The company's mission revolves around "delivering
Supervisor
optimal products and exceptional services to our
customers", leading to the establishment of a
comprehensive after-sales service system. To
guarantee a comprehensive and attentive service
experience, we delve deep into understanding our
International
customers' specific needs and offer precise, Manager Pre-sales
Technical Support
reliable solutions. Upholding the ethos of genuine
customer care, we prioritize enhancing customer
satisfaction and fostering close collaboration. This
effort is guided by cultivating a dedicated service
team spanning marketing, sales, order tracking Domestic Application
and technical support. Furthermore, the Technical Support Testing
company’s priorities on product technological
innovation driven by market demands has enabled
us to establish a globalized sales and service Organizational Structure for Technical Service Team
network.
Responsible for domestic and international technical support, system technical support, system research
Supervisor
and technical support team management.
International Responsible for technical support work in various overseas regions, providing technical training, and
Technical Support conducting system-level research on photovoltaic systems.
Responsible for domestic technical support, system technical support, system research and management
Manager
of domestic technical support/system application testing teams.
Domestic Provides technical support for products covered under signed warranty agreements, offering guidance on
Technical Support product installation and debugging to customers.
Based on customer feedback, proposes new design requirements to R&D; conducts application testing on
Application
new products to improve product reliability and stability; provides technical support for products covered
Testing
under signed warranty agreements, offering guidance on product installation and debugging to customers.
Assists in customer support with relevant regional sales and marketing teams; communicates with
customers to design and plan system projects and develop implementation plans based on customer
Pre-sales
requirements; compiles technical, product, and training materials; organizes technical work and
corresponding training.
Environmental, Social and
Industrial Prosperity and Value Co-Creation Governance (ESG) Report
After-Sales Service Response Customer Service Training
In order to provide efficient and professional complaint handling services, standardize the process for handling customer complaints, Customer service has become a pivotal factor for enterprises in winning market share and attaining customer loyalty. To
and ensure timely responses and satisfactory solutions when customers encounter issues, the company strictly adheres to legal continuously elevate the company's service quality, cater to diverse customer needs, and establish long-term stable partnerships
regulations and has established the After-Sales Operations Management Standards to actively address inquiries related to our products, with clients, the company regularly conducts specialized customer service training programs. These programs are delivered
providing comprehensive and expert responses. Furthermore, both the Sales and Marketing Departments are responsible for through both in-person and remote training formats, aimed at deepening employees' understanding of service principles,
gathering and documenting feedback and suggestions, offering practical solutions to address any identified issues. enhancing service efficiency and customer satisfaction. Through these training programs, each employee is expected to internalize
customer satisfaction as a fundamental aspect of their work ethic, contributing collectively to the creation of an outstanding service
Customer satisfaction remains our top priority. In cases where return or exchange requests arise due to product issues, the company brand. This effort propels the company towards achieving elevated service excellence and broader prospect for development.
responds promptly to ensure that consumer concerns are effectively resolved. Regarding after-sales services, we commit to actively
contacting customers within 24 hours of identifying the service type, with designated after-sales personnel offering viable solutions.
Should on-site support be necessary, our proficient personnel will promptly deliver services following approval by the after-sales
Training Formats
department leadership. Our after-sales team ensures solution implementation and maintains ongoing monitoring until the issue is Customer
Official Website Demands
completely resolved. Should the issue still persist, we conduct a reassessment and develop successive solutions until achieving a
Registration -
closed-loop resolution.
Periodic Training Sales
Requirements
Specialized
Remote In-person
Customer Satisfaction Live Streaming Training
Trade Show
Public Account
In pursuit of consistent optimization and elevated customer satisfaction, the Presentation
Performance Event
company has implemented the Customer Satisfaction Measurement and Control
Procedures. This framework employs scientific and systematic methods to During the reporting period
gather, analyze, and respond to customer feedback comprehensively. Through
the company customer
this approach, we gain insights into customer demands and expectations satisfaction rate
across multiple aspects including products, brands, services, logistics and
pricing. We leverage these insights to implement targeted improvements and %
enhancements, thereby maximizing customer satisfaction.
On-site Training Live Streaming Training
Responsible Marketing
APsystems strictly adheres to the Advertising Law of the People's Republic of China and rigorously monitors the promotion and sales
processes of its products. Every marketing slogan and advertisement content undergoes thorough compliance review to ensure the
authenticity and legality of information.
The company is dedicated to providing consumers with accurate and efficient product information to assist them in making
informed choices. In its promotional strategies, the company steadfastly upholds principles of authenticity and fairness. Through
continuous innovation and flexible responses to market changes, the company strives to meet diverse customer needs without
employing hyperbole or deceptive practices. It is this commitment to authenticity and principled conduct that has granted the
company a favorable reputation and credibility in the market.
Environmental, Social and
Industrial Prosperity and Value Co-Creation Governance (ESG) Report
Sustainable Supply Chain Management
Supplier Selection and Evaluation
With the acceleration of globalization and the increasing exposure of environmental issues, enterprises are facing growing social
responsibility and environmental pressures. Sustainable supply chain management not only helps companies reduce operational When introducing new suppliers, the company conducts thorough assessments on areas such as design and
risks and improve efficiency but also enhances brand image and social influence. Through proper sustainable supply chain manufacturing capabilities, quality systems, business conditions and production validation outcomes. Only after passing
management practices, companies achieve a win-win situation between economic benefits and social benefits, contributing to these evaluations are suppliers recognized as qualified partners. The company then carries out periodic or random audits
global sustainable development. and investigations on these qualified suppliers. If any supplier fails to meet the company's standards in terms of technical
capabilities, quality performance, pricing considerations or service alignment, appropriate procedures for improvement,
alteration or disqualification will be initiated.
Supply Chain Management System
Score Scoring Criteria and Results
To meet the company's expanding needs in both domestic and international markets, the company has intensified collaboration
with partners and fortified supply chain management efforts. Moreover, the company strictly adheres to relevant laws and
regulations such as the Law of the People's Republic of China on Tendering and Bidding and Regulations on the Implementation of the Tendering and 70% and above Evaluation deemed as qualified
Bidding Law of the People's Republic of China. Leveraging actual operational circumstances, the company has established the Supplier
Management Procedures and Procurement Control Procedures. These protocols standardize and refine supplier investigation, selection,
delivery management and price management, ensuring supply chain security and stability. 60%-70% Placed on observation list; re-evaluation after improvement within one month
Below 60% Evaluation deemed as unqualified
Full Lifecycle Management
In order to ensure the standardized and systematic management of suppliers, the company has implemented the Supplier
Management Measures, imposing rigorous controls over entry, approvals and evaluations to achieve full lifecycle management of
suppliers. Furthermore, the company has established the Procurement and Payment Management Procedures to evaluate the
effectiveness of the internal control system, ensuring the procurement department can accurately anticipate upcoming payments.
Supplier Evaluation
This assits the finance department in making informed fund projections and preparations, thereby safeguarding the legitimate
rights and interests of suppliers.
For established partners who have become qualified suppliers, the SQE develops an annual supplier audit plan at the
beginning of each year to assess whether their quality systems are maintained and improved, ensuring they meet the
Suppliers Full Lifecycle Management Process company's and customers' requirements. During the audit process, any issues identified by the SQE are confirmed
on-site with the supplier and formally communicated via email, along with a request for the supplier to provide written
improvement measures. During re-assessment, the company focuses on monitoring the improvements made by
suppliers with previous non-compliance or incoming material quality issues observed during the last assessment. If a
supplier fails to make effective improvements within the specified time frame or remains unqualified upon
Supplier Evaluation
Qualified Suppliers
On-site Inspection
On-site Evaluation
Inspection Results
Entry of Qualified
Re-evaluation of
Comprehensive
re-assessment, the quality team will draft a formal notification. After approval by the Operations Supervisor and CTO,
Re-evaluation
Collaboration
Assessment
Assessment
Continued
YES YES YES YES
Suppliers
the supplier's qualified status will be revoked.
Results
Results
or Not
Supplier Classification
For significant manufacturing-oriented key suppliers, the SQE conducts quarterly reviews of their capabilities to ensure
they meet the company's requirements. The company evaluates these suppliers based on the Key Supplier Assessment
NO NO NO NO Scorecard, focusing on five elements: quality, price, delivery, service, and technology. Each element carries a specific
assessment weight: quality (40%), price (15%), delivery (15%), service (10%), and technology (20%).
On-site Evaluation Supplier Rectification
Exemption within Deadline
Environmental, Social and
Industrial Prosperity and Value Co-Creation Governance (ESG) Report
On-Site Assessment
Information Security and Privacy Protection
Grade Score Category Recommendation Risk Level
Frequency
In the digital era, the security of personal information and sensitive data is directly impacting individuals' interests. Confronting
A Excellent Supplier
(Including 90) procurement volume reasonably cutting-edge encryption technologies and robust security measures to safeguard data confidentiality and integrity. Moreover, the
Once
Low Risk company places significant emphasis on safeguarding user privacy, strictly monitoring the collection, storage and utilization of user
every two years
data to ensure comprehensive respect for and protection of user privacy rights.
B Good Supplier
(Including 80) enhanced scrutiny
Information Security Management System
Consider reducing procurement
C Qualified Supplier or temporary suspension, or Medium Risk Once a year
(Including 60) APsystems places a strong emphasis on information security and
utilize as an emergency backup
protection, strictly adhering to the requirements of the Personal Information
Below 60 Protection Law of the People's Republic of China and relevant regulatory
Immediately Terminate frameworks. The company has established internal management systems
D Deemed Unqualified Supplier High Risk
terminate procurement cooperation such as the Information Security Management Manual, Information Security Risk
Unqualified
Management Procedures and Information Asset Classification Management
Procedures to respect and safeguard customer privacy, contributing
significantly to promoting network and information security.
Responsible Procurement To ensure the effective functioning of the company's information security
management system, an ISO working group has been established to
The company rigorously upholds the criteria for selecting and evaluating suppliers, distributors and service partners, giving fair foster a robust information security culture within the company, further
consideration to their performance and management capabilities in areas such as quality, environmental impact and occupational enhancing the company's information security management capabilities
health and safety. Partners are chosen based on their suitability for collaboration. Adhering to principles of fairness, equity and and levels. The ISO group consists of representatives from management
transparency, the company conducts regular performance assessments of its partners to enhance supply chain management and department leaders.
optimization and improve overall value chain performance.
As of the end of the reporting period, the company has obtained ISO
The company signs a Supplier Corporate Social Responsibility Commitment with suppliers and strictly adheres to the stipulations outlined 27001 information security management system certification.
in the APsystems Supplier Code of Conduct. As of the end of the reporting period, the signing rate of the Supplier Corporate Social Information Security Management System Certification
Responsibility Commitment stands at 100%.
APsystems Supplier Code of Conduct
Information Security Risk Assessment
Suppliers are required to uphold the human rights of their employees in accordance with globally
Labor recognized standards, demonstrating full respect for their workforce and preserving their dignity. In order to safeguard information assets, the company has established an Information Asset Identification and Risk Assessment Form.
This form is designed to identify internal information assets within the organization and assess the risks associated with them.
Through this approach, the company gains insights into the value of information assets and potential security hazards, allowing
Suppliers should acknowledge that a safe and healthy work environment not only reduces work-related
for the implementation of appropriate measures to ensure data security.
injuries and illnesses but also enhances product and service quality. It contributes to increased
Health and productivity, higher employee retention rates and improved morale. Suppliers should also recognize the
Safety Categories of Information Assets
critical role of continuous employee investment and education in identifying and addressing health and
safety issues in the workplace.
Suppliers are expected to minimize adverse impacts on society, the environment and natural resources
Environment
during their manufacturing operations, while protecting public health and safety.
Business Suppliers must adhere to the highest ethical standards in all aspects of their business activities.
Ethics Physical Assets Software Assets Service Assets Document Assets Human Resources Data Assets
Assets
Environmental, Social and
Industrial Prosperity and Value Co-Creation Governance (ESG) Report
During risk assessment, our company adheres to the fundamental principles of confidentiality, integrity and availability. We assess
Information Security Training
risks based on severity, occurrence and weakness, categorizing them into four levels: low, medium, high and very high. This
systematic approach helps us gain a comprehensive understanding of the risk profile of our information assets and allows us to
implement specific measures to mitigate risks at different levels. As the digital transformation progresses, the significance of information security for enterprises is increasingly emphasized. To
guarantee the security of core information and assets, the company regularly organizes information security training sessions. The
training curriculum not only covers regular backup procedures for technical documents and strict management of internal file
Severity (S)
access permissions but also includes dissemination of confidentiality knowledge and establishment of regulations for the design
Determined by the value of the asset identified team, as well as the regular review and implementation of confidentiality policies with appropriate rewards and penalties.
Performance
during asset identification Additionally, the company promotes and enforces its confidentiality control system, combined with confidentiality agreements,
Total of
providing dual protection. Security protocols for operations and laboratory equipment usage have been established, along with
During the Information Assets
Occurrence (O) enhanced monitoring facilities. These trainings foster close collaboration across departments, fortifying the company's information
reporting
period security defenses and ensuring seamless operations and continuous innovation.
The expected frequency of risk occurrence Items
Low Risk Medium Risk High Risk During the reporting period, information security training was provided to all employees, resulting in 20 individuals obtaining ISO
Weakness (W) Assets Assets Assest 27001 information security management system internal auditor certification.
Whether existing control measures can detect,
prevent and respond promptly to the risk if it occurs
Information Security Training
The company has conducted information security training to elevate employees' awareness and enhance their
Data Security Measures self-protection capabilities regarding data security. The training program aims to foster a profound understanding of the
improtance of data security among employees, empowering them with practical knowledge and skills. This equips them to
effectively prevent data breaches and uphold the integrity of company information security in their practical work.
The company places utmost importance on data security and has implemented a comprehensive set of measures to
safeguard data. Leveraging the ISO 27001 information security management system certification, we have established a
robust information security management framework that governs data from generation, utilization, storage, transmission
and other aspects to ensure data integrity and confidentiality. In addition, we have developed a powerful network
protection system, deploying devices and software systems such as firewalls, WAF and antivirus systems. These measures
play an effective role in preventing external intrusions and
internal virus propagation. Regular updates to our network
security devices and software versions are conducted to
promptly address known vulnerabilities and maintain a
stable and secure network environment.
To further fortify data security, the company regularly backs
up business system data and conducts recovery drills to
ensure rapid data restoration in emergencies, thereby
ensuring seamless business continuity. Furthermore, we
have implemented a file encryption system to encrypt
sensitive files, coupled with stringent data access controls
based on departmental and personnel responsibilities, to
ensure controlled access and secure handling, transmission
and storage of data.
Environmental, Social and
Employee Well-being with Boundless Rights and Interests Governance (ESG) Report
Employee Well-being with
Boundless Rights
and Interests
Environmental, Social and
Employee Well-being with Boundless Rights and Interests Governance (ESG) Report
Labor Relations Management 2023
New Hires(persons) New Hires by Gender
At APsystems, we place a great emphasis on the value, rights and interests of our employees, providing them with comprehensive
support and development opportunities. We strive to cultivate a fair and inclusive work environment where every employee can
fully unleash their potential, contributing to the sustainable growth of the company. Through a robust compensation and benefits
system, we ensure that employees' rights and interests are fully protected. Moreover, we prioritize addressing employees' concerns
and promoting their physical and mental health, fostering a sense of care and respect within the workplace. We are committed to
creating a diverse, equitable and harmonious work environment that encourages creativity and teamwork among employees,
thereby driving greater value for the company.
New Hires(persons) Male Female
Employee Recruitment and Employment
Our company adheres strictly to the principle of lawful employment, following
all relevant laws and regulations such as the Company Law of the People's Republic Performance
of China and the Civil Code of the People's Republic of China. We have established and New Hires by Recruitment Channel
implemented employment management systems, including the Human Resources labor discrimination
During the
incidents
Management Procedures to ensure the legality and compliance of our recruitment reporting
and employment practices. This ensures the full protection of employees' legal
rights and interests in areas such as recruitment, promotion, working hours,
period
compensation and benefits as well as employee development.
Social Recruitment Campus Recruitment
In order to continuously enhance the company's workforce composition and talent pool, we actively engage in talent acquisition
through a refined recruitment process and diversified channels, including social recruitment, campus recruitment and internal 134 Persons 37 Persons
promotions. In social recruitment, our primary focus is on online platforms, complemented by on-site hiring events and leveraging
headhunting services. We have established partnerships with six recruitment platforms to ensure coverage of job opportunities for
local and national candidates. For campus recruitment, the company primarily participates in university presentations
independently, with informational sessions as a supplement. During the reporting period, we participated in 21 career fair events
and held 3 informational sessions.
Workforce Diversity and Inclusion
APsystems consistently upholds principles of fairness and impartiality in its recruitment processes, assessing candidates
based solely on job requirements without prejudice regarding nationality, ethnicity, place of origin, gender, language,
religious beliefs or qualifications. The company ensures that employees have equal rights to employment, training,
compensation and career promotion, fostering an environment of equality and diversity in the workplace.
In accordance with national regulations such as the Performance
Regulations on Prohibiting the Use of Child Labor and local As of the end of the
reporting period
legal requirements, the company verifies the age of
applicants during the recruitment process. It is explicitly Female Female Managers
stated in the Human Resources Management Procedures that Managers Accounted
all employees must be at least 18 years old, and the
employment of child labor is strictly prohibited. 8 Persons 1.98 %
Campus Recruitment
Environmental, Social and
Employee Well-being with Boundless Rights and Interests Governance (ESG) Report
Total Workforce Employees with Disabilities Minority Ethnicity Employees We recognize that compensation and benefits are robust drivers for unlocking employee potential, unleashing their value, and
powering the company's steady progress and market leadership. As such, we uphold the principle of "internal equity, external
competitiveness", establishing a refined compensation management framework that enhances employee satisfaction, productivity
and overall engagement.
The company keeps encouraging employees to deliver value by conducting biannual performance evaluations, including mid-year
and year-end assessments. These evaluations are directly tied to compensation, serving as a catalyst for unlocking employee
potential. We employ a comprehensive, fair and objective dual-dimensional assessment method based on job responsibilities and
performance achievements during these evaluations, ensuring an accurate evaluation of each employee's performance.
Employees Count by Gender Employees Count by Region
Compensation Structure
Male Employees Female Employees China (including Hong Kong, Overseas Countries
Macau and Taiwan) or Regions Positional Salary Determined based on the employee's position importance and individual qualifications
Performance-based Salary Paid according to the employee's job performance and company performance
Employees Count by Position Level Employees Count by Age
Provided as benefits to employees based on the company's operational conditions and
Various Allowances regional standards
Senior Management Mid-level Management Below 30 Years Old 30-40 Years Old Offered as incentives in accordance with the company's or department's performance,
(Excluding 30) (Including 30, Excluding 40) Bonuses following specified reward policies after assessments
Junior Management Regular Employees 40-50 Years Old 50-60 Years Old 60 Years Old The company places a strong emphasis on employees' working hours and holiday arrangements, adhering strictly to the
(Including 40, Excluding 50) (Including 50, Excluding 60) and Above
attendance management system. In addition to national statutory holidays, employees are entitled to various welfare leave periods,
including annual leave, marriage leave, maternity leave, nursing leave, breastfeeding leave, sick leave, work-related injury leave,
bereavement leave and personal leave. Depending on job roles and different work stages, departments may adjust work schedules
appropriately after receiving approval from leadership and considering practical circumstances.
Employees Count by Educational Qualifications Employees Count by Specialization
Furthermore, the company rigorously follows the Performance
Signing Rate of Employee
requirements stipulated in the Social Insurance Law of the During the The Labor Contract Turnove Rate
People's Republic of China, ensuring punctual payment of reporting
Doctorate Degre Master's Degree Production Sales
period
the five social insurances and one housing fund for % %
employees. Additionally, the company provides other
Coverage Rate for
Persons Persons Persons Persons benefits such as commercial insurance, employee The Social Insurance
housing facilities, heatstroke subsidies, medical
Bachelor's Degree College Degree Below College Technology Finance Administration check-ups, holiday gifts and more to employees. %
Degree
Environmental, Social and
Employee Well-being with Boundless Rights and Interests Governance (ESG) Report
Democratic Management Employee Care
The company actively upholds democratic management
At APsystems, we recognize that the happiness and satisfaction of our employees are fundamental to the company's sustainable
principles, strictly adhering to the Trade Union Law of the
development. Therefore, we not only prioritize employees' career growth but also dedicate ourselves to enriching their lives and
People’s Republic of China and the Constitution of the All-China
enhancing their overall well-being. Our goal is to cultivate a relaxed and enjoyable work environment through a variety of cultural
Federation of Trade Unions. It fulfills its legal obligations by Performance
During the reporting period and recreational activities, as well as team-building initiatives. These efforts are aimed at helping employees find fulfillment and
establishing a robust system of workers' congresses and
enjoyment in their work, leading to increased motivation and productivity. Moreover, we encourage employees to pursue their
trade unions. This system ensures employees' rights to
Deliberated and Approved The Trade Union's Membership personal interests and hobbies outside of work, promoting a healthy work-life balance and maintaining their physical and mental
information, participation, expression, election and
Agenda Comprised of Active Employees health. The company is committed to continuously improving and creating a vibrant and fulfilling experience for our employees,
oversight, thus safeguarding their democratic rights
comprehensively. Furthermore, the company regularly
convenes workers' congresses to solicit and carefully
fostering a sense of care and warmth within our organization.
consider employee feedback and suggestions, thereby
promoting sustainable development and fulfilling social
responsibilities effectively.
Employee Satisfaction
The company places a strong emphasis on protecting and respecting employees' freedom of expression, considering it a vital
aspect of democratic management within the organization. We are dedicated to fostering an open and inclusive work
environment that allows employees to freely voice their opinions and suggestions.
To gain deeper insights into employees' truthful perspectives and the objective realities of the company, senior leadership utilizes
various channels such as SMS/WeChat platforms, rationalization proposals, employee satisfaction surveys, forums, department
meetings at grassroots levels, recreational activities and luncheons. These initiatives aim to gather feedback and suggestions, and
assess employee satisfaction. Additionally, the company conducts regular employee satisfaction surveys using a Employee
Satisfaction Questionnaire. This questionnaire covers key areas such as job satisfaction, work environment, compensation and
benefits perceptions, and opinions on personal development and leadership. Gathering employee feedback allows us to actively
identify and address potential issues, further optimizing the company's management practices and work environment.
Moreover, for probationary employees, direct leaders will conduct face-to-face discussions, centered around adaptability,
job-related skills and overall impressions. These conversations facilitate a smooth integration of new employees into the team and
Fun Sports Day
ensure they receive the necessary guidance and support.
We continuously enhance the channels and response processes for Performance
During the reporting period
employees to provide feedback and voice their concerns. These
channels include phone calls, WeChat and other communication
The Employee Participation Rate in The
methods, with which employees can express their concerns and
Satisfaction Rate Employee Satisfaction Survey
expose potential risks. Employee appeals receive the highest level
of attention, ensuring fair and transparent handling processes that
protect employees' legitimate rights and interests effectively.
Basketball Activities Badminton Activities Team Building Activities
Environmental, Social and
Employee Well-being with Boundless Rights and Interests Governance (ESG) Report
The company holds a steadfast belief in the indispensable role of female employees in our development, as their talents,
intelligence and strength add a unique dimension to our organization. Therefore, we are dedicated to cultivating an inclusive, Employee Training and Development
equitable and supportive work environment where every female employee can fully unleash her potential. We understand that by
providing care and support to our female employees, they will gain the confidence and determination needed to navigate their
career paths, fostering mutual growth and creating a brighter future together with the company. APsystems considers employee training as a fundamental driver of our corporate competitiveness and future growth. It not
only facilitates the enhancement of employees' professional skills and knowledge but also cultivates a stronger sense of
belonging and loyalty among them. In today's intensely competitive market landscape, continuous employee training has
become an essential prerequisite for enterprises to sustain competitive edge and achieving sustainable development.
Celebrating International Women's Day
Training System and Policies
In celebration of International Women's Day, the company delivered its appreciation for female employees by gifting them
The company steadfastly upholds the belief that employees represent our most valuable asset, and their growth and
with warm spring gifts. These gifts were not just material offerings but also served as symbols of encouragement, inspiring
development are pivotal to the company’s future. As such, we have established and continually refined a system for employee
female employees to maintain confidence and courage in constantly challenging themselves and striving for greater
recruitment, training and incentives, aimed at encouraging employees to continuously elevate their inherent value. We
achievements in the future work endeavors.
recognize the unique potential and talents possessed by each employee, and through targeted training and guidance, we
empower them to harness their strengths effectively, fostering mutual growth for both individuals and the organization. Our
commitment lies in providing employees with a growth platform characterized by challenges and opportunities, cultivating
their innovative mindset and practical capabilities, thereby enabling them to stand out from others in the industry through
continuous learning and practice.
Our company boasts an exceptional internal training team comprising individuals with profound expertise and extensive
teaching experience. They deliver a wide array of professional knowledge courses to employees, fostering a culture of
knowledge accumulation and sharing within the company. As of the end of the reporting period, our internal training team
consists of 10 trainers.
Company Hierarchical Training
New Employee Training
In order to facilitate a swift integration into the company culture
and familiarization with work processes for new employees, the
company has provided essential guidance and support. This
initiative empowers new employees to unleash their potential
effectively. During the reporting period, a total of 84 individuals
participated in 5 new employee training sessions, accumulating
Expertise Training
Focused on enhancing practical operational capabilities and theoretical
knowledge among our workforce, the company prioritizes professional skills
Performance
development. The company conducted targeted training programs on "Safety
During the reporting period Management of Lithium Batteries" and "Analysis, Testing and Application of
Power Converter Magnetic Technology" to elevate employees' specialized skill
Employees Initiated Return-to-Work Employees Took Return-to-Work
Maternity Leave Rate Afterward Parental Leave Rate Afterward levels. The "Safety Management of Lithium Batteries" course emphasizes
critical safety protocols and maintenance techniques for lithium battery usage,
Persons % Persons % ensuring employees can safely and efficiently operate lithium batteries in
practical operational scenarios. Conversely, the "Analysis, Testing and
Application of Power Converter Magnetic Technology" course provides in-depth
insights into applied technology and testing methodologies, enabling employees to grasp and utilize power converter
magnetic technology effectively.During the reporting period,the company has conducted two professional skills training
sessions with a total of 91 participants, accumulating 21 hours of training.
Environmental, Social and
Employee Well-being with Boundless Rights and Interests Governance (ESG) Report
Employee Development Pathway
Systematic Employee Training Program Implemented by the Company
To further facilitate employees' career advancement, the company has established the Employee Promotion Management Measures and
The company has implemented a comprehensive and systematic employee training program aimed at enhancing the Employee Rewards and Penalties Management Regulations (Interim), thereby instituting a dual career development pathway that
professional capabilities. This program includes department-based rotational online training, ensuring that every integrates horizontal and vertical progression.
employee has sufficient opportunities for learning. Each training session lasts between 4 to 5 hours, with rotations
occurring every three weeks. This schedule maintains learning continuity while giving employees sufficient time for Regarding horizontal development, we encourage employees to engage in internal transfers or competitive applications across
assimilation. During the reporting period, the average total credits earned per person were 29, with a total participation departments and roles, aligning with the company's business growth and individual interests. This approach not only enhances
of 252 individuals and an average of 22 courses per person. employees' overall competencies and adaptability but also optimizes the allocation of human resources within the company,
maximizing the realization of talent value. Conversely, vertical development primarily focuses on employees' growth within their
These training programs have led to improvements in employees' professional skills, promoting their competitiveness current roles, providing opportunities for promotion as their capabilities continue to improve.
within their respective domains. Concurrently, this approach has provided robust talent support for the company's
business growth. This dual development pathway design offers employees a diversified range of career tracks, enabling them to realize their
personal value while contributing to the company's constant vitality for sustained growth.
Career Development Pathway
Employee Training Performance
Management Positions
Director Manager Senior Manager Supervisor
Senior Deputy Deputy
Senior Supervisor
General Manager General Manager
Business Titles
Investment in Employee Training Number of Training Sessions Total Number of Employees
Receiving Training
Engineering and Technical Roles
CNY 351,889 24 sessions 2,440 persons Technician Assistant Engineer Engineer Senior Engineer
Intermediate
Engineer
Senior Advanced Advanced Senior Chief Chief Senior Intermediate
Engineer Engineer Engineer Engineer Engineer
Marketing Roles
Business Business Senior Business
Clerk Business Assistant
Specialist Manager Manager
Employee Training Coverage Rate Total Training Duration Average Annual Training Senior Business Deputy Business Deputy Senior Business Business
General Manager General Manager Supervisor Supervisor
Duration per Employee
Job titles are determined based on specific job requirements,
with corresponding benefits provided according to the designated level
Environmental, Social and
Employee Well-being with Boundless Rights and Interests Governance (ESG) Report
To further enhance employees' professional skills and overall
Safety Production Risk Management
competencies, the company encourages employees to pursue Individuals Acquired
By the end of The company places great importance on the health and safety of its employees, conducting regular workplace occupational
relevant professional certifications. During the reporting period, Junior-Level Certificate
the reporting
period
hazard assessments. Utilizing professional detection equipment and advanced technological methods, the company thoroughly
a total of 23 technical professionals participated in continuing
Persons examines hazardous substances in the workplace to ensure a healthy and safe environment for all employees. Furthermore, the
education training covering both "General Subjects" and
company collaborates with specialized medical institutions to conduct routine occupational disease screenings, providing
"Professional Subjects". The objective was to comprehensively Intermediate-Level Advanced
Certificate Certificate comprehensive health protection for its workforce.
elevate employees' knowledge and skills. The company and
employees shared the training costs equally, thereby relieving
individual financial burdens and showcasing the company's
In terms of emergency response, the company implements a comprehensive three-level safety education program to equip
employees with fundamental safety awareness and skills to effectively handle unforeseen incidents. To enhance efficiency in
commitment to employee growth and support. responding to sudden environmental and safety incidents, the company conducts regular environmental and safety emergency
response drills. These drills serve to enhance employees' emergency response capabilities, ensuring swift and accurate response
measures in unexpected scenarios.
By the end of the reporting period, the company has not experienced any occupational disease injuries or serious safety
Health and Safety production accidents.
Constantly maintaining a prudent and professional attitude and strictly adhering to national and local laws and regulations.
APsystems highly values employee life safety and physical health as top priorities, and the company employs scientific preventive
measures and rigorous training mechanisms to ensure comprehensive protection.
Safety Training and Dissemination
Occupational Health and Safety System
Safety production is everyone's responsibility. To standardize
The company views employee health and safety as a crucial aspect of achieving sustainable development, steadfastly implementing employee safety behaviors, APsystems has formulated the
various employee health protection policies. It strictly adheres to laws and regulations such as the Law of the People's Republic of China APsystems 2023 Employee Training Plan, actively conducting new
on Work Safety and the Law of the People's Republic of China on Prevention and Control of Occupational Diseases. Manuals and procedural employee safety education and safety production training
documents related to occupational health and safety management systems have been established to ensure full employee sessions. These initiatives aim to fortify the safety defenses of
participation and negotiation rights in aspects such as hazard identification, assessment and control planning, occupational health employees and elevate their safety awareness and skills.
and safety management goal planning, incident investigation and handling, and occupational health and safety performance Training content encompasses safety production-related
evaluation. This approach ensures effective safety production within the company. documents, regulations, processes, hazard factors, preventive
measures and case studies of accidents. Training is conducted
To enhance the safety production capabilities of all personnel and foster a safety culture throughout the organization, the company through on-site lectures, with the establishment of
consistently upholds the principles of "safety first, prevention-oriented, comprehensive governance". It follows the policies of professional training participant files. Safety Training for New Employees
"safety management must accompany production management" and "whoever is in charge is responsible", establishing the Safety
Production Responsibility System. This system clearly defines the safety production responsibilities of each unit, management personnel
at all levels, and employees in various positions, thereby strengthening the safety awareness of all employees. As the company's
top safety officer, the General Manager bears overall responsibility for safety work,ensuring the effective execution of safety During the reporting period, the company actively engaged
measures. in the national Safe Production Month initiative, organizing
a series of innovative and impactful promotional
campaigns. Leveraging platforms such as live-streamed
fire safety training sessions and interactive online quizzes
During the reporting period, the Chairman, General Manager with incentives, the company effectively disseminated
and relevant departmental leaders have jointly signed Annual crucial safety production knowledge to each member of its
Safety Production Target Responsibility Agreements. Additionally, workforce. These endeavors not only facilitated the
front-line employees exhibited a 100% signing rate, with widespread understanding of safety production knowledge
safety responsibilities throughout the organization. "collective vigilance towards safety production and the
protection of life". "Safe Production Month" Promotional Poster
Environmental, Social and
Employee Well-being with Boundless Rights and Interests Governance (ESG) Report
Security Training Performance
Investment in Safe Production Total Investment in Safety Education Number of Training Sessions
and Training Number of Training
CNY 171.68 million CNY 3.5 million 5 Sessions
Number of Participants in Total Duration of Coverage Rate of
Safety Education and Training Safety Education and Training Safety Education and Training
Occupational Health Protection Measures
To enhance employees' awareness of occupational disease prevention
and elevate their overall health, the company conducts four annual Occupational Health Hazard Notification Signs
training sessions focusing on occupational disease prevention. These
sessions are designed to ensure that employees gain a comprehensive
understanding and mastery of relevant knowledge. Through collaborative
To further elevate employees' occupational health standards, the
efforts and active participation, the company aims to foster a healthier
company arranges regular health examinations at designated
and safer work environment, safeguarding the physical well-being and life
medical institutions. Workers engaged in tasks involving potential
safety of its employees.
occupational disease hazards undergo occupational health checks
Furthermore, the company conducts regular promotional activities and before starting work and periodically during their employment.
educational campaigns on occupational health, including observances
During the reporting period, 173 employees who had completed
dedicated to occupational disease prevention. Additionally, occupational
one year of service participated in health examinations, achieving
health hazard notification signs and occupational health safety warning
a 100% coverage rate. Similarly, the coverage rate for new
signs are displayed in areas where occupational hazards are present,
employees' health examinations upon joining the company was
such as factory zones and work sites. These measures effectively
Promotional Poster for Occupational also 100%. Photo of Employees Undertaking Health Examination
strengthen employees' awareness and understanding of occupational Disease Prevention Observances
hazards associated with their respective roles.
Environmental, Social and
Promoting Social Harmony Through Philanthropy Initiatives Governance (ESG) Report
Promoting Social Harmony
Through Philanthropy
Initiatives
Environmental, Social and
Promoting Social Harmony Through Philanthropy Initiatives Governance (ESG) Report
As a global leader in distributed photovoltaic storage solutions, APsystems has consistently remained committed to its mission
of "Driving Towards a Zero-Carbon Future, Co-Creating an Intelligent Life". We place great importance on philanthropy,
continuously deepening our partnerships with various charitable organizations and sectors, actively fulfilling our social Donations of Solar Reading Lights to Mountainous Regions
responsibilities, and contributing our strength to the thriving development of philanthropic endeavors.
In recent years, APsystems has leveraged its strengths to collaborate closely with numerous domestic and international
charitable organizations, making significant contributions to the harmonious development of society. Since 2016, the company During the reporting period, APsystems donated 1,666 solar reading lights to more than ten primary and secondary
has donated over ten thousand solar lights to children in poverty-stricken areas, with a cumulative value exceeding CNY schools in remote mountainous regions of Sichuan and Guizhou provinces, China. These solar lights were specifically
others, we have conducted charitable activities, raising over 23,000 Euros and donating 3,600 solar lights to the non-profit compact, portable and can be charged directly by sunlight. With a single charge, they can provide continuous usage
organization "Extend the Day". This initiative provides more reliable and sustainable energy solutions for residents in Africa and for up to 5 hours, making them highly cost-effective and suitable as supplementary lighting sources for children in
other regions, thereby helping improve their living conditions. remote areas.
Moving forward, APsystems will continue to strengthen cooperation with other charitable organizations and sectors, diversify Throughout the donation process, APsystems collaborated with various charitable organizations and organized
the forms of philanthropic activities, and empower initiatives such as photovoltaic poverty alleviation, solar light donations and volunteer activities to ensure that each light was distributed to the students, bringing them the "light of hope" filled
children's photovoltaic knowledge promotion. We are committed to actively engaging in philanthropy and contributing even with beautiful aspirations.
more significantly to the harmonious development of society.
Environmental, Social and
Appendix Governance (ESG) Report
Appendix 维度
Dimension
Number of Disabled Employees
指标
Indicator 单位 Unit
Person(s)
Number of Minority Ethnic Employees Person(s) 8
Key Performance Male Employees Person(s) 285
Female Employees Person(s) 119
Employees in China (including Hong Kong, Macau and Taiwan) Person(s) 332
Dimension Indicator Unit 2023 Employees in Overseas Countries or Regions Person(s) 72
Convening of the Shareholders' Meeting Time(s) 5
Senior Management Person(s) 9
Deliberation of Agenda Items at the Shareholders' Meeting Item(s) 17
Middle Management Person(s) 18
Composition of the Board of Directors Person(s)
Junior Management Person(s) 46
Ordinary Employees Person(s) 331
Independent Directors Person(s) 3
Below 30 Years Old (Excluding 30) Person(s) 134
Female Directors Person(s) 1
Directors with Doctoral Degrees Person(s) 2
Directors with Master's Degrees Person(s) 2
Directors Aged 30-50 Person(s) 1
Above 60 Years Old Person(s) 8
Directors Aged 50-60 Person(s) 5
Doctorate Person(s) 4
Directors Aged over 60 Person(s) 1
Master's Person(s) 65
Convening of the Board of Directors Time(s) 9 Bachelor's Person(s) 276
Deliberation of Agenda Items at the Board of Directors Item(s) 40 College Diploma Person(s) 47
Composition of the Supervisory Board Person(s) 3 Below College Diploma Person(s) 12
Corporate
Governance Convening of the Supervisory Board Time(s) 8 Production Person(s) 11
Deliberation of Agenda Items at the Supervisory Board Item(s) 21 Sales Person(s) 62
Payment of Taxes CNY 10,000 17,789 Technology Person(s) 212
Regular Disclosure of Reports Piece(s) 6 Finance Person(s) 18
Disclosure of Temporary Announcements Piece(s) 62 Administration Person(s) 101
Human
Conduct of Investor Open Forums Time(s) 4 Resources Return-to-Work Rate after maternity leave % 100
Reception of On-Site Investor Surveys Time(s) 1 Number of Employees on Maternity Leave Person(s) 2
Addressing Investor Inquiries Time(s) 52 Return-to-Work Rate after Parental Leave % 100
Investor Inquiry Response Rate % 100 Number of Employees on Parental Leave Person(s) 7
Cash Dividend per Ten Shares CNY 2.2 Labor Contract Signing Rate % 100
Total Cash Dividend (Including Other Methods) CNY 10,000 1,760 Social Security Coverage Rate % 100
Percentage of Total Cash Dividend (Including Other Methods) to Total Profit Distribution % 48.82 Employee Turnover Rate % 13.6
Rate of Anti-Commercial Bribery and Integrity Agreements Signed with Suppliers % 93.55 Number of Agenda Items Approved by the Workers’ Congress/Union Item(s) 1
Environmental Electricity Consumption kWh 726,922 Ratio of Active Employees to Union Members % 100
Management Water Consumption Ton(s) 487
Employee Satisfaction % 100
R&D Expenditure CNY 10,470.53
Participation Rate in Employee Satisfaction Surveys % 91.13
Ratio of R&D Expenses to Company Revenue %
Investment in Employee Training CNY 10,000 35.19
Number of R&D personnel Person(s)
Number of Training Sessions for Employees Session(s) 24
Total Number of Employees Trained Person(s) 2,440
Ratio of R&D Personnel to Total Company Workforce % 51.98
Total Duration of Employee Training Hour(s) 239,120
New Invention Patents Item(s) 4
Industrial Average Training Duration per Employee Hour(s) 98
New Utility Patents Item(s) 4
Value Employee Training Coverage Rate % 100
New Software Copyrights Item(s) 9
Amount of Investment in Safety Production CNY 10,000 17,167.77
Customer Satisfaction % 74
Total Investment in Safety Education and Training CNY 10,000 350
Signing Rate of Supplier CSR Commitments % 100 Number of Safety Education and Training sessions Session(s) 5
Number of Labor Discrimination Incidents Incident(s) 0 Number of Participants in Safety Education and Training Person(s) 1,162
Number of New Employees Person(s) 171
Safety
Total Duration of Safety Education and Training Hour(s) 1,646
Number of New Male Employees Person(s) 128
Production Safety Education and Training Coverage Rate % 100
Number of New Female Employees Person(s) 43 Number of Front-line Employees Signing Safety Commitment Agreements Agreement(s) 220
Number of New Employees Recruited Through Social Channels Person(s) 134 Signing Rate of Safety Commitment Agreements by Front-line Employees % 100
Number of New Employees Recruited from Campuses Person(s) 37 Coverage Rate of New Employee Entry Physical Examinations % 100
Total Number of Employees Person(s) 404
Number of Female Leadership Person(s) 8
Percentage of Female Leadership % 1.98
Environmental, Social and
Appendix Governance (ESG) Report
Index of Indicators Feedback Form
Dear Reader：
Framework Content CASS—ESG 5.0 GRI Standards
About This Report P1.1/P1.2/P1.3/G3.7 102-53/102-54 report. Your opinions and suggestions are crucial for us to continuously improve our ESG information disclosure,
advance ESG management and practices. Your opinions and suggestions are precious to us, and we sincerely thank
Chairman's Message P2.1/P2.2/A1 102-14/102-15
you for providing them!
A Close Glimpse at APsystems P4.1/P4.2/P4.3 102-1/102-2/102-3/102-6/102-16
Sustainable Development 102-15/103-2
G2.4
Sustainable Prosperity, Goals
Perpetual Development Sustainable Development 102-29/102-31/102-40/102-42/ 1.What is your overall rating on our performance in fulfilling ESG initiatives?
G3.5/G3.6 102-44/102-46/102-47/103-1
Initiatives
Governance Framework G1.1/G1.2 102-18/102-22/102-23/102-24/405-1 □ Excellent □ Good □ Fair □ Poor □ Very Poor
Risk Control Management G1.3 102-11/102-15/102-30
Robust Supervision, 2.What is your overall rating on this ESG report?
Governance as Priority Investor Relations G1.10/G1.11 102-25/102-43
Business Ethics
□ Excellent □ Good □ Fair □ Poor □ Very Poor
G1.7/G1.9 102-16/102-17/205-2/205-3/206-1
Emphasizing Green
/ /
Environmental Management 3.How do you perceive our communication with stakeholders?
Conservation for Expanding Green
E1.1/E1.6/E1.7/E1.9/E2.1/E2.2/E2.10 307-1
Business Initiatives
Future Collaboration
Sustaining Green
□ Excellent □ Good □ Fair □ Poor □ Very Poor
E1.8 403-7/416-1/417-1
Operations
Research and Development
E1.1/E2.14/E3.5 302-4/302-5/306-2/306-4 4.How do you assess our product responsibility?
(R&D) Innovation
Product Liability V2.1/V2.2/V2.3/V2.4/V2.5/V2.7/V2.8 103-2/302-4
□ Excellent □ Good □ Fair □ Poor □ Very Poor
Industrial Prosperity Customer Rights S4.1 103-2/417-1
and Value Co-Creation and Interests
Sustainable Supply 5.How do you rate our performance in terms of environmental, safety and occupational health aspects?
S4.3/S4.5/S4.7 417-1
Chain Management
Information Security
S5.1/S5.2 102-9/204-1/308-2/414-2
and Privacy Protection □ Excellent □ Good □ Fair □ Poor □ Very Poor
Labor Relations 418-1
S4.6
Management
Employee Well-being 6.What is your opinion on our employee responsibility?
Employee Training S1.1/S1.2/S1.3/S1.4/S1.5/S1.6/S1.7/S1.8/ 102-35/201-3/401-1/401-2/405-1/
with Boundless Rights and Development S1.9/S1.10/S1.11 405-2/406-1/408-1-409-1
and Interests
Health and Safety S2.1/S2.2/S2.3/S2.4 404-1/404-2/404-3 □ Excellent □ Good □ Fair □ Poor □ Very Poor
Promoting Social Harmony Through Philanthropy 403-1/403-2/403-3/403-4/403-5/
S3.1/S3.4/S3.5/S3.6/S3.7/S3.8/S3.9/S3.10
Initiatives Future Prospects 403-6/403-7/403-8/403-9/403-10 7.How do you evaluate our overall ESG performance?
Key Performance A2 /
□ Excellent □ Good □ Fair □ Poor □ Very Poor
Appendix Index of Indicators A4 102-55
Feedback Form A5 102-53 8.Do you have any comments or suggestions regarding our ESG performance and this report?
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