HGTECH COMPANY LIMITED
Notes on the Preparation of the Report
Scope of
the Report This report is the fourth environmental, social, and governance (ESG) report
publicly released by HGTECH COMPANY LIMITED. (hereinafter referred to as
"HGTECH", "the Company", or "we") to the public, covering HGTECH and its major
holding subsidiaries. Unless otherwise speci?ed, the scope is consistent with the
consolidated ?nancial statements of HGTECH's annual report (Stock Code:
Time scope
This report is an annual report, covering the period from January 1, 2025, to
December 31, 2025. To enhance the completeness of the report, some text
extends beyond this scope.ii
HGTECH COMPANY LIMITED Preparation
Companies Self-regulatory Guidelines No. 1 - Standardized Operation of Main
Board Listed Companies (2025 Revision)" issued by the Shenzhen Stock Exchange.
It also references the "Shenzhen Stock Exchange Listed Companies Self-regulatory
Guidelines No. 17 - Sustainable Development Report (Trial)", "Shenzhen Stock
Exchange Listed Companies Self-regulatory Guidelines No. 3 - Preparation of
Sustainable Development Report (2026 Revision)", T/CERDS2-2022 "Enterprise
ESG Disclosure Guidelines", and the GRI General Standards. The Chinese version of
this report shall prevail.
Data
description The data and cases presented in this report are sourced from the actual operational
records or ?nancial reports of HGTECH and its major holding subsidiaries.
Contact Information
O?ce of the Board of Directors of HGTECH
Tel: 027-87180126
Fax: 027-87180139
E-mail: 0988@hgtech.com.cn.
You can get more information about
HGTECH. through the company’ s o?cial
website (https://www.hgtech.com.cn)
and Juchao Information Network
(http://www.cninfo.com.cn)
*In case of any inconsistency between the Chinese and English versions, the Chinese version shall prevail
ENVIRONMENTAL | SOCIAL | GOVERNANCE
Chairman’s Address 07
We and Governance
About HGTECH
Corporate Governance Structure 29
Company Profile 09 Internal Control Construction and Risk Management 31
Corporate Culture Philosophy 10
We and Innovation Information Disclosure and Standardized Operations 31
Identification of Important Issues 10 Investor Relations Management 32
Overview of ESG Management 11 Hgtech Central Research Institute:
Source of Innovation
Deeply Integrating into the Stakeholder Communication 34
"Artificial Intelligence" Wave 18
Compliance Management System Development 35
Collaborative Innovation for Industry-
University-Research-Application Data Security and Clients Information Protection 35
Development
Anti-Bribery and Anti-Corruption 37
"Management Innovation" for Product Anti-Unfair Competition
Quality Enhancement 26 37
Safeguarding the "Golden Reputation"
of Intellectual Property 27
We and Partners
Supply Chain Security 39
Supporting the High-Quality Development
of Small and Medium-Sized Enterprises 40
We and the Environment
Protect Clients’ Rights and Interests 41 We, Our Employees,
Environmental Management System 45 and Social Responsibility
Addressing Climate Change 46 Employee Rights and Benefits 58
Environmental Protection Investment 52 Employee Development and Training 60
Waste Disposal 52 Employee Promotion and Incentives 62
Rational Utilization of Resources 54 Occupational Health and Safety 63
Environmental Protection Measures
at Overseas Bases 56 Fulfilling Social Responsibility 65
Key Performance Indicator Table 67 Benchmarking Index Table 70 Feedback Form 71
HGTECH COMPANY LIMITED / 2025 Environmental, Social and Governance ESG Report 07
Fostering New Quality Productive Forces internal control, and risk management mechanisms, thus guar-
Chairman’s through Technological Innovation anteeing a scienti?c and e?ective corporate governance
structure. We have built a multi-layered risk prevention and
Address HGTECH continues to intensify its independent research and
development e?orts, ?rmly adhering to the goals of “global
control network against commercial bribery and corruption,
achieving full coverage of supply chain integrity commitments.
debut, industry leadership, and specialization, re?nement, Our information disclosure has received the highest “A” rating
di?erentiation, and innovation.” We advance innovation from the Shenzhen Stock Exchange for ten consecutive years,
through a dual-driver model that combines “organized innova- earning widespread market recognition for our corporate
tion” with “exploratory innovation.” Committed to collaborative governance standards. Furthermore, the Company has consis-
innovation among industry, academia, research, and applica- tently distributed cash dividends to investors for many years,
tion, and to integrated innovation within our industrial ecosys- with the payout ratio gradually increasing as a testament to our
tem, we have established a vertically structured R&D frame- commitment to rewarding our investors.
work consisting of two tiers (Central Research Institute and
core subsidiaries) across four echelons, enabling centralized
management of the Group’s innovation resources. We further
Laying the Foundation for Sustainable Devel-
deepen initiatives such as the “PhD 500 Plan,” the “Hunter
opment with Green Momentum
Plan,” and “company-wide talent scouting,” attracting excep-
tional talent from around the globe and harnessing the Guided by the “dual carbon” goals, HGTECH focuses on green
strength of outstanding young professionals, thereby continu- technology and intelligent manufacturing. We are actively
ously invigorating our technological innovation capabilities. In promoting the construction of green factories, strategically
alignment with national strategies, HGTECH fully embraces expanding into clean energy, and increasing investments in
arti?cial intelligence, deeply applies AI, and actively integrates energy conservation and emission reduction to minimize
into the AI wave, leveraging “optoelectronics + arti?cial intelli- environmental impact at the source. In green manufacturing,
gence” as an innovation engine to empower industries across we have introduced eco-friendly products such as laser clean-
HGTECH COMPANY LIMITED ing systems and intelligent hydrogen energy manufacturing
the board in achieving value leaps. In 2025, HGTECH’s core
Chairman Ma Xinqiang holding subsidiaries were recognized as National Advanced solutions, empowering our clients’ low-carbon transitions
Collectives in the Industrial and Information Technology through smart factory o?erings. Our overseas facilities strictly
System and were included in the national list of key machine adhere to international environmental standards, actively
tool enterprises. establishing a green operational system. We consistently
As HGTECH embarks on the 15th Five-Year Plan period, we
integrate environmental responsibility throughout the entire
are closely aligned with the trend toward the real-world appli- process of R&D, production, and operations, taking concrete
cation of arti?cial intelligence, striving to become a globally Building a Foundation for Lasting Success actions to protect our natural surroundings. HGTECH has been
leading full-stack AI capability enabler integrating “Sensing, through Robust Governance successfully recognized as a “China ESG 100 Pioneer among
Transmitting, Knowing, and Using.” By deeply embedding State-Owned Listed Companies” by China Central Television.
The Company consistently improves its governance frame-
ourselves into national strategies and future industrial As arti?cial intelligence accelerates its transformation of every
work, establishing a modern corporate organizational system
facet of human work and life, HGTECH is entering a new phase
landscapes, we leverage technology to address the critical and governance mechanisms with clearly de?ned rights and
where we embrace systematic, logical, and digital thinking. We
questions of our time. Guided by our mission, “Innovation responsibilities, all aimed at becoming a world-class enter-
adhere to the execution principles of “clear goals, actionable
prise. Under the Board of Directors, we have established the
connects a better world,” we integrate ESG principles into our pathways, and tangible results,” staying focused on the two
Strategy and ESG Committee, forming a three-tier ESG
corporate development, diligently pursuing high-quality core strategies of “innovation-driven growth” and “globaliza-
governance structure spanning the “decision-making,
growth while ful?lling our responsibilities to society, the tion.” By fostering sustainable development through continu-
management, and execution” levels. We maintain regular
ous technological innovation, we prioritize the sustainable
environment, and the future. communication with stakeholders, accurately identify core
growth of our businesses. We will continue to ride the wave of
ESG issues, track performance, and benchmark against inter-
AI, uphold the requirements of ESG governance, and relent-
national standards. We have established a robust compliance
lessly strive to build a smarter, better world.
management system, reinforcing the “three lines of defense”
to ensure the coordinated operation of legal, compliance,
Company Profile
HGTECH COMPANY LIMITED was established in 1999 in the heart of the "China Optical Valley". In 2000,
it was listed on the Shenzhen Stock Exchange. It is a high-tech enterprise group integrating 'research
and development, production, sales, and service,' and in 2015, it was recognized as a national-level
innovative enterprise. After years of technological and product accumulation, the company has formed
three main business structures: a connectivity business supported by information and communication
technology, a perception business supported by sensitive electronic technology, and an intelligent man-
ufacturing business supported by laser processing technology and software algorithms. The company is
committed to become a globally leading full-stack AI capability enabler integrating "Sensing, Transmit-
ting, Knowing, and Using".
Business Scope
Connectivity Business
The company possesses an industry-leading one-stop vertical integration solution in the optical
communication sector, with strategic R&D and large-scale production capabilities covering the
full range of products from chips to devices, modules, and subsystems. Products include Ultra
high speed transceivers, Copper-connect Transceiver, Intelligent Projection Headlight Module,
Satellite communication Transceiver applied in key areas such as AI computing power and global
wireless communications. The company focuses on four major application scenarios: AIGC,
intelligent optical network world and serve top global internet service providers/data application
companies (AI computing), NEMs (network equipment manufacturers), telecom operators, and
smart car manufacturers.
Sensing Business
The company continuously consolidates its global leadership in thermal management for new
energy vehicles and in temperature, pressure, and optoelectronic series sensor technologies. It
independently masters the core technologies of sensitive ceramic chip manufacturing and packag-
ing processes for sensors, deeply empowering the intelligent upgrading of the entire new energy
industry chain, actively lays out emerging ?elds such as embodied intelligence and low-altitude
economy, and provides globally leading, multidimensional sensing and control solutions for new
energy and intelligent connected vehicles, photovoltaic energy storage, smart homes, robotics,
?ying cars, smart grids, smart cities, and other ?elds.
HGTECH COMPANY LIMITED
Stock Code: 000988.SZ
Intelligent Manufacturing Business
The company is the pioneer and leader of China's 'Laser Intelligent Manufacturing' system, leading
the formulation of global industry standards for industrial ?ber lasers and equipment, achieving a
full industry chain layout from chips to devices, equipment, production lines, and smart factories.
The technology covers the three major material processing systems of laser subtractive, conformal,
and additive methods, and is committed to providing comprehensive 'Laser Intelligent Manufactur-
ing' solutions for industries such as 3C electronics, semiconductor chips, automotive and new
energy, shipbuilding, commercial aerospace, and smart agriculture.
HGTECH COMPANY LIMITED / 2025 Environmental, Social and Governance ESG Report 11
Corporate Culture Philosophy Overview of ESG Management
While delivering cutting-edge innovative products and services, the Company actively complies with
Mission and Vision Cultural Spirituality and Core Values regulatory requirements from the Shenzhen Stock Exchange. Upholding the principles of ESG manage-
【Our Mission】 ment, we continuously re?ne and optimize ESG mechanisms, advance regularized ESG governance, and
Open, Professional, E?cient integrate ESG practices deeply into daily production and operations to drive high-quality development. In
Innovation fuels a better world
Unite to Strive, 2025, HGTECH further enhanced its ESG governance framework with the goal of building ESG competi-
【Our Vision】 Surpass Expectations， tiveness aligned with corporate distinctiveness. A three-tier ESG governance structure “Decision-Making
To become a globally leading full-stack AI Layer–Management Layer–Execution Layer” was established to clarify responsibilities at each level.
Create Value,
capability enabler integrating "Sensing,
Share Success Board of Directors: Oversees strategic ESG decision-making and supervision; Legal & Compliance
Transmitting, Knowing, and Using"
Department: Coordinates ESG implementation under board guidance, Business Units & Subsidiaries:
Execute speci?c ESG works, transforming commitments into measurable actions.
Identification of Important Issues
Identify important issues
Most important
analysis
andsummary
of issues
Impact siani?cance
communications
with stakeholders
identify core issues in the
context of the company ’s
actual situation, industry
characteristics,
and policy
backgrounds
Financial signi?cance Most important
parent company increased by 20.48%
R&D investment grew by 9.96%
Overseas sales revenue rose by 45.52%.
HGTECH deeply implements national strategies and industry development plans, closely following the core guidance
of “technological innovation relies ?rst on investment and second on talent.” By 2025, the company will continue to
focus on the construction of the Central Research Institute as a core driver, promoting the concentration of innova-
tion investment and high-quality talent on 'global ?rst releases, industry-leading, specialized and innovative' prod-
ucts, achieving multiple breakthroughs in technological research and product development: In the ?eld of industrial
mother machines, it has successfully developed the country's ?rst Intelligent Laser Etching Equipment for Complex
Curved Surface Textures and launched the 5th Generation Intelligent 3D 5-Axis Laser Cutting Machine, contributing
We and Innovation to the construction of a world-class industrial mother machine hub; in the ?eld of smart agricultural machinery, it has
developed the country's ?rst All-Weather Intelligent Laser Weeding Robot, expanding applications of laser technolo-
gy; in the ?eld of optical communications, it has established a 1.6T series optical module product solution and
promoted the research and implementation of next-generation 3.2T CPO technology, reaching the international
?rst-tier technical level; in the ?eld of sensors, aligning with Xiaogan's 'China Knowledge Valley' strategic positioning
and the sensor industry cluster development plan, the company focuses on breakthroughs in core MEMS technolo-
gies, systematically deploying multi-type MEMS sensor products including integrated temperature and pressure
sensors, gas sensors, and in-vehicle environmental perception sensors, consolidating its industrial innovation advan-
HGTECH adheres to independent research and development, aims at
tage.
the goal of “global ?rst - launch, industry - leading, and specialized,
re?ned, characteristic and innovative”, and focuses on independent
innovation and industrial chain collaborative innovation to achieve the
upward and innovative development of the enterprise.
Innovation above all
Highlights of Innovation and Practice in 2025
Innovation Excellence - 2025 Highlights
National Advanced Collective in the Industrial and Information First Prize of Science and Technology Award of the Chinese Society
Technology System for Optical Engineering
Top 100 China Brand Internationalization Benchmark “Development Potential Award” of the Open Innovation Track of the National
“Data Elements ×” Competition Finals
CCTV’s “China ESG 100 Pioneers among State-Owned Listed
Companies” “Golden Laser” New Product Award
Top 10 Most Competitive Optical Device & Auxiliary Equipment “Red Star Award” – Laser Industrial Equipment Innovation Award
Companies in China
Top 10 Most Competitive Global Optical Device Companies
First Prize of Technological Progress Award of the Chinese
Institute of Electronics Highest Level Certi?cation for Integration Implementation (AAA Level)
AAA Credit Rating Certi?cation for China's Backbone Electronic Typical Application Case Award for Welding Innovative Products
Component Enterprises
“Golden Hydrogen Award” – Annual Excellent Solution Provider
Gold Medal of the 50th International Exhibition of Inventions Geneva
Shipbuilding Industry “Strong Chain Brand”
“Hangjia Aurora Award” – Third-Generation Semiconductor Annual Excellent
Chain Supporting Enterprise Award
First Prize of Hubei Provincial Technical Invention Award
Best Laser Intelligent Equipment Technology Innovation Award
Hubei Provincial Manufacturing Champion Enterprise
In-Mold Decorating Association (IMDA) – Best In-Mold Decoration Application
Hubei Provincial Sensor Industry-University Joint Innovation Center Design Award
Hubei Provincial Intellectual Property Protection Workstation New Quality Productivity Recognition in the Inland River Vessel and O?shore
Engineering Industry – Excellence in Marine Equipment Supply
First Prize of Guangdong Provincial Science and Technology
Progress Award 2025 China Automotive Industry Sustainable Development Practice Case
Guangdong Province “2025 Advanced-Level Smart Factory” 2025 Ringier Technology Innovation Award in the Smart Manufacturing Industry
Wuhan Arti?cial Intelligence Demonstration Application Scenario SENSOR CHINA 2025 “Perception Power Award”
First Prize of Science and Technology Progress Award of the CFCF 2025 Annual Innovative Product Award.
Machinery Industry
HGTECH COMPANY LIMITED / 2025 Environmental, Social and Governance ESG Report 17
Hgtech Central Research Institute: Adhering to Organized Innovation
Source of Innovation We have established a two-tier, four-echelon R&D structure vertically across the Central Research Institute and core
subsidiaries to coordinate R&D resources across the entire group. At the group level, we integrate superior resources
from upstream and downstream industry chains to advance the Central Research Institute, focusing on national needs
HGTECH focuses on strengthening technological innovation and product innovation as the logical starting point for and industry trends. We initiate project-based R&D targeting "forward-looking technologies, bottleneck technologies,
high-quality development. It continuously increases R&D investment and optimizes the innovation system. At the monopolized products, and common technical challenges," thereby laying out product and technology roadmaps for the
group level, a Central Research Institute has been established to plan and deploy strategic and forward-looking next three to ?ve years. Meanwhile, the technology centers of each subsidiary are responsible for iterating specialized
innovation achievements from the top level. As a result, a team dedicated to independent innovation has been and sophisticated new products and improving processes. They conduct project-based R&D for projects that can be
quickly implemented based on client orders and yield high gross margins, while also undertaking the engineering and
formed. With the mission of undertaking major national strategic goals, it promotes the self-reliance and self-im-
industrialization of R&D outcomes from the Central Research Institute.
provement of optoelectronic technology.
CTOs of primary core enterprises are uniformly appointed, with their performance assessments centered on technolog-
Taking the construction of the Central Research Institute as the starting point, HGTECH focuses on creating a cradle ical innovation and R&D management to coordinate key tasks. Guided by corporate development strategies, we scien-
ti?cally formulate and implement technological innovation development plans. We build a hierarchical R&D project
of innovation, a gathering place for high-end talents, and a platform for the concentration of innovative resources management system with clear authority and responsibilities, improve the structuring of R&D personnel echelons with
for itself. It continuously strengthens the construction of the technological innovation system, aims at the command- appropriate compositions and capabilities, strengthen the synergy and e?cient linkage of internal and external innova-
ing heights of future technological and industrial development, and in line with the new trends in industry develop- tion resources, and promote the standardization, process-orientation, and normalization of technology management.
ment, has achieved phased results in a number of core technical ?elds, such as semiconductor (SiC) wafer process- We focus on core technology breakthroughs in key areas and drive the transformation and application of technological
ing and detection, silicon photonics chips and optical modules, green ships, visual sorting of intelligent cutting and achievements. Through systematic construction and focused breakthroughs, we aim to comprehensively enhance the
e?ciency of technological innovation and the core competitiveness of the enterprise.
blanking production lines in the construction machinery industry, and the PTC controller of the thermal management
system for new energy vehicles. It has also made a comprehensive layout in terms of intellectual property rights,
achievement awards, and the cultivation of technology-based enterprises. In 2025, a total of 433 patent applications
were submitted, among which 220 were inventions and 148 were applications for software copyrights. Innovate the Future
The First HGTECH's "V5" Innovation and Entrepreneurship Competition
Since the launch of the inaugural "V5" Innovation and Entrepreneurship Competition of HGTECH, a total of 115 projects
have been registered, with a large number of them being AI-related. The competition projects focus on cutting-edge
?elds such as high-end equipment manufacturing, intelligent sensing, and new materials, demonstrating both techno-
logical innovation and industrialization potential. Internal projects deeply synergize with the company's existing
businesses, while external projects o?er innovative solutions for emerging markets. This competition has e?ectively
ignited the innovation enthusiasm of young technical professionals. Through the exchange and cross-pollination of
internal and external projects, it has achieved breakthroughs in key technologies and identi?ed new product directions
with strategic value. The implementation of these innovative outcomes will signi?cantly enhance the company's overall
innovation capability. HGTECH has always adhered to creating social value through technological innovation. By estab-
lishing innovation platforms, the company aims to facilitate the successful transformation of more outstanding projects
from the laboratory to the market.
HGTECH's 3rd Innovation Day
Themed "Intelligence Creates the Future," HGTECH's 3rd Innovation Day showcased a range of cutting-edge scienti?c
and technological achievements on site. Nearly 300 attendees, including invited experts, representatives from strategic
cooperation partners, fund signing representatives, collaborating institutions, key clients, core backbone talents, and
employee representatives, gathered to conduct in-depth exchanges and discussions centered on technological innova-
tion and optoelectronic frontiers.
Furthermore, to fully stimulate the potential of R&D personnel, the company resolutely implements intellectual prop-
erty and technological innovation reward systems. It has established dedicated reward mechanisms for researchers,
promotes performance management reforms, and re?nes assessment and incentive mechanisms oriented toward
innovation capability and value contribution. The Implementation Measures for R&D Personnel Assessment and
Incentive Management have been enforced, granting corresponding rewards to personnel involved in project R&D.
HGTECH COMPANY LIMITED / 2025 Environmental, Social and Governance ESG Report 19
Planning Innovative Talent Development
Technical Advantages：
HGTECH is consistently anchored to the development core of "the company's future lies in innovation, the key to Utilizes advanced packaging technology
innovation lies in investment, and the focus of investment is talent." The company regards talent as the primary
resource supporting high-quality development, broadly attracting talents guided by the need for "high-level, precision, Equipped with self developed silicon photonics chips
cutting-edge, and urgently needed expertise." Focusing on core technological breakthroughs, the company dares to Superior signal processing, reducing processing requirements on device side chips, with outstanding adaptability
think and act, innovatively launching the "PhD 500" Plan, while continuously deepening the "Hunter Plan" and the
"Young Seedling Plan." It encourages talent scouting by all employees, promoting a leap in both the quality and quantity Linear optical technology, eliminating the need for DSP chips
of its talent force. The company deeply practices the broad talent view of "use-oriented, not necessarily owned but
utilized," forming a high-level "think tank" for the Central Research Institute by engaging 30 top experts, including more Product Performance：
than 10 academicians, to provide guidance on technological innovation. It continuously intensi?es the implementation
High speed: 3.2 Tbit/s unidirectional, 6.4 Tbit/s bidirectional data transmission per second
of the "Hunter Plan," building a benchmark talent pool for the industry, injecting strong momentum into the cultivation
of top-notch talents, and safeguarding the company's high-quality development. High integration density: rate capacity per unit area is 11.4 times that of traditional modules (800G OSFP)
Low power consumption: energy consumption per bit reduced by 50%
Maintainability: detachable design with external light source
Deeply Integrating into the Wave Compatible with both air cooling and liquid cooling thermal systems
of Artificial Intelligence Industry chain decoupling
*(Based on laboratory measured data; actual results may vary depending on application scenarios, operating conditions, and other factors.)
HGTECH's industry??rst 3.2T NPO product has already been successfully deployed with leading industry clients,
HGTECH AI Strategy achieving not only a breakthrough upgrade in transmission rate but also a comprehensive leap in power
consumption, cost, and reliability. This marks a new stage where all?optical scale?up enters engineering imple-
mentation.Next, HGTECH's 3.2T NPO product will be deeply integrated into key scenarios such as AI large model
Strategic Positioning computing and hyperscale data centers, building a solid computing power foundation for the advancement of AI
technology!
To build a globally leading enabler of full-stack AI capabilities in "Sensing, Transmission, Cognition, and Application"
Connectivity Business
supported by information and
Sensing Business
supported by sensitive electronic
Intelligent Manufacturing Business
supported by laser processing technology
（2）HG · Vision Series Industrial Embodied AI Products
communication technology technology and software algorithms
From more precise perception capabilities to more ?exible decision-making systems, From better-adapted
full-scenario applications to more modular standardized units, The HG · Vision series industrial embodied AI
products are fully upgraded, Making manufacturing smarter, and intelligence simpler.
New AI Products
「Eyes」Perceiving the Minute: Order Architect – HG · Vision Sorting
Multimodal sensing breaks cognitive boundaries
（1）3.2T NPO Product 【10,000+ Irregular Workpieces · Millisecond Response】
Eyes Breaks through visual limitations, achieving 99%+ precision in pickup
Amid the wave of large?scale AI cluster development, scale?up interconnection networks face unprecedented
and placement, bidding farewell to "seeing without sorting"
challenges in bandwidth density and communication latency. Traditional pluggable optical modules su?er from
high power consumption, while CPO solutions entail di?cult maintenance and high manufacturing barriers. In
contrast, the NPO solution exhibits a strong "greatest common divisor" characteristic: it signi?cantly shortens HGTECH
the electrical signal transmission distance, reduces power consumption, while retaining the independent replace- Brain Hands
ability of the optical engine, thus balancing signal integrity with maintainability.
「Brain」Strategizing Globally: 「Hands」Executing Precision:
Full-stack closed-loop drives Flexible execution unlocks new
intelligent decision-making production frontiers
HGTECH's 3.2T NPO product solution Articulated Robot Handling
& Sorting Workstation
Articulated Robot Palletizing
Workstation
Provides OIF-compliant 3.2T NPO optical engines and supporting external light source modules (ELSFP)
>20m ultra-large ?eld of view recognition
Dynamic recognition of 10,000+ components, higher
perception, higher ?exibility
Beyond one station, full-chain intelligent collaboration Gantry Robot Handling & Gantry Robot Palletizing
Sorting Workstation Workstation
Intelligent sorting assistant empowers the entire chain,
making sorting more intelligent and e?cient
HGTECH COMPANY LIMITED / 2025 Environmental, Social and Governance ESG Report 21
Steel Artist – HG · Vision Welding
【Programming-Free Teaching · Stable Welding of Complex Seams】 「Speed」Breaks Bottlenecks:
Ultra-wide bandwidth carries massive data
Fully automatic, high-precision, easy deployment – digital welding experts make production easier
Speed
Vehicle-mounted high-speed
communication optical module
HGTECH Ultra-high bandwidth: Transmission bandwidth is 10 times higher
Stability Integration than existing copper Ethernet
Extreme compatibility: Supports vehicle interfaces such as MIPI,
「Stability」 Conquers All Terrains： 「Integration」Connects the SerDes, Ethernet, SPI
Superior anti-interference ensures Entire Vehicle：
precise transmission Full-scenario adaptation empowers
intelligent driving upgrades Flexible networking: P2P/P2MP connection methods are ?exible
Ground-Rail Teaching-Free Cantilever Teaching-Free Welding Gantry-Type Teaching-Free
Welding Workstation Workstation Welding Workstation Superior anti-interference: EMC performance improved by over
AI + 3D vision, no teaching, no programming – simple and convenient operation
High precision with high ?exibility, weld seam positioning accuracy <1mm Full-Domain Performance Leap – Intelligent Driving Domain
Multiple intelligent welding workstation con?gurations for multi-scenario adaptation Microsecond-level transmission delay, empowering the implementation of L3 and L4
Built-in expert welding process library, supporting various complex welding processes Supports next-generation megapixel-level high-de?nition cameras for intelligent driving
Compatible with both digital and analog signal sources, enabling e?ortless welding across the entire site
Full-Domain Performance Leap – Cockpit Domain
Breaks through bandwidth bottlenecks for multi-screen interaction, enabling the implementation of AI large model applications
Supports smooth display of next-generation 4K/8K ultra-high-de?nition large screens
Process Judge – HG · Vision Inspection Technological Innovation – EE Architecture Upgrade
【Predictive Intelligent Inspection · Full-Chain Feedback Traceability】 Provides high-speed support for future HPC architectures
An "industrial quality inspection expert" that foresees before events, Backbone ring network transmission rate increases by 10 to 25 times
observes during events, and gains insights after events
Optical ?ber weighs only 40% of copper cable, and costs only 1/2 of copper cable
Perceives operational speci?cations, understands process and quality,
improving yield rates
Accurately identi?es over 50 types of micro-defects with a detection （2）Satellite-Borne Optical Communication Modules
accuracy rate of over 99%
HGTECH's satellite-borne optical modules build a solid core foundation for 6G space-air-ground integration. From
AI inspection expert provides yield analysis, quality ?uctuation analysis,
and optimization recommendations, achieving a prediction accuracy rate high-speed intra-satellite connectivity to long-distance satellite-to-ground and inter-satellite communication,
of over 90% From radiation hardening to ultra-long on-orbit stability, Using light as a bridge, connecting heaven and earth,
jointly marching towards a new future of intelligent connectivity for all things.
Intelligent Inspection Workstation *(The above parameters are measured values for customized non-standard automation solutions.)
「Resistance」Mastering Space:
Fearless of radiation, long-term on-orbit stability
New Scenarios
Resistance
（1）Vehicle-Mounted Optical Communication Solutions HGTECH 100G SR Satellite-Borne Optical Module:
The Intra-Satellite Data Highway
Speed Integration
Optical Communication for Vehicles has been selected as one of China's Top Ten Automotive Technologies for
try. "Optical ?ber onboard" and "copper-to-?ber transition" have become inevitable trends in vehicular commu- Boundless bandwidth, links reaching afar Space-air-ground integration, satellite platform and over short distances, adapting to core
intelligently connecting all things
scenarios such as e?cient data distribution within low-orbit
nication. From higher-speed transmission capabilities to more stable communication architectures, and from
satellites, space-based AI computing interaction, and
more comprehensive vehicle adaptation to more ?exible networking modes, HG Tech's Automotive High-Speed interconnection of distributed processors.
Communication Optical Transceiver Module bring optical ?ber onboard and enable smarter driving.
HGTECH COMPANY LIMITED / 2025 Environmental, Social and Governance ESG Report 23
Technical Advantages: （4）AI Field Investments
Compared to copper cable communication, it o?ers smaller size, lighter weight, higher speed, lower power consumption, lower
launch costs, and outstanding radiation and interference resistance, suitable for high-density integration needs
HGTECH Investment and HGTECH Laser jointly initiated the establishment of Harbin HGTECH Zhiyun Technology
Supports multi-channel ultra-wideband communication within the satellite, reaching rates of the 100G Ethernet standard Co., Ltd. . Based on a deep insight into the pain points of agriculture and agronomy, HGTECH Zhiyun takes "Laser
+ AI + Robotics Technology" as its core, and through a full-chain technology closed loop of "Perception-Deci-
sion-Execution," vigorously promotes the transformation of modern agriculture from "chemical intervention" to
"precise physical control."
DWDM Spaceborne Transceiver
HGTECH Investment has directly invested in 2 AI-related project, and the fund initiated by HGTECH Investment
Primarily responsible for long-distance, highly has invested in 2 projects within the AI industry chain. HGTECH Investment initiated the establishment of
reliable, large-capacity communication between
HGTECH Future (Wuhan) Venture Capital Fund Partnership (Limited Partnership), focusing on exploring invest-
satellites and for key satellite-to-ground links.
ment opportunities in ?elds such as AI arti?cial intelligence, robotics, medical-engineering integration, low-alti-
tude economy, and upstream and downstream areas of the industry chain. The investment area aims to connect
resources from HGTECH's Central Research Institute, research institutes, and universities.
Technical Advantages:
Compared to traditional microwave communication, it o?ers longer transmission distance, higher capacity, lower power consumption,
smaller size, lower channel attenuation, and stronger interference resistance
Wavelength adapts to the ITU-T C18~C52 range, rates covering 10G/25G+, combined with radiation resistance characteristics
High-precision wavelength division technology paired with EDFA supports 100km-1000km satellite-to-ground and inter-satellite
communication
In the future, HGTECH's satellite-borne optical modules will deeply empower 6G communication and space-based
AI computing data centers, collectively building the "arteries" and "capillaries" of the low-orbit satellite communi-
cation internet. They will provide a solid cornerstone for the space-based internet in the 6G era, driving the com-
prehensive intelligent development of the integration of communication, remote sensing, navigation, and future
space data centers.
(3) All-Weather AI Intelligent Laser Weeding Robot
The All-Weather AI Intelligent Laser Weeding Robot comprehensively covers the three dimensions of Environment
(E), Society (S), and Governance (G), fully demonstrating the core value of technology enabling sustainable
agricultural development and providing a practical reference for the green transformation of agriculture.
At the Environmental (E) level, the robot uses precise laser weeding to replace chemical herbicides, reducing
pesticide residues and soil and water pollution at the source, protecting farmland ecology, contributing to the
control of agricultural non-point source pollution, and promoting green and low-carbon production.
At the Social (S) level, the equipment can operate automatically around the clock, signi?cantly reducing labor
costs and intensity, improving production e?ciency, helping to enhance the quality and e?ciency of agricultural
products, broadening income-generating paths for farmers, and empowering rural revitalization.
At the Governance (G) level, the company adheres to technological
innovation and compliant development, building an intelligent
agricultural equipment system, solving the pain points of agricultural
green transformation with technology, and achieving a unity of
ecological, economic, and social bene?ts.
In the future, the company will continue to optimize the robot's
performance, expand application scenarios, promote the popular-
ization of green and intelligent agriculture, and support the achieve-
ment of high-quality agricultural development and carbon neutrality
goals.
HGTECH COMPANY LIMITED / 2025 Environmental, Social and Governance ESG Report 25
Collaborative Innovation for Industry-University-
Research-Application Development
The company is always dedicated to the in-depth development of industry-university-research integration, focusing
on strategic innovation projects and core technology R&D. By establishing joint laboratories, making equity invest-
ments, dispatching excellent management personnel, and collaboratively overcoming key core technologies, it actively
builds cooperation bridges with institutions of higher learning, research institutes, and industry clients. The company
e?ciently integrates and fully leverages social resources to promote the transformation of scienti?c and technologi-
cal achievements into practical applications, fostering overall industry progress and innovation.
In 2025, the company collaborated with 19 strategic partners to establish a multi-dimensional collaborative innova-
tion framework: to advance the product portfolio of intelligent microsystems and MEMS sensors; relying on the Laser
Equipment Industry-University-Research Joint Laboratory, multiple independently developed semiconductor equip-
ment sets have entered industrial testing; leveraging the Joint Technology Research Center to build industry-leading
technological capabilities in the ?eld of brittle material processing; co-founding the Laser and Intelligent Manufac-
turing Technology Enterprise Joint Innovation Center with the Wuhan Academy of Technology Innovation and jointly
establishing an angel fund to empower innovation development through capital. In the ?eld of industry exchange, the
company regularly visits suppliers and key clients and actively participates in various industry exhibitions and forums.
By deeply engaging in communication and knowledge sharing, it keeps pace with industry development trends, grasps
cutting-edge technological developments, and seeks potential cooperation opportunities, providing valuable industry
insights and technical support for the company's development.
Building an Industrial Ecosystem and
Innovation Chain
R&D USE IMPROVE MATURE
HGTECH is consistently dedicated to collaborating with upstream and downstream enterprises, concentrating superi-
or resources to collectively address technical challenges and drive collaborative innovation. This approach accelerates
the resolution of critical component and fundamental common challenges, "deploying innovation chains around the
industrial chain and laying out industrial chains around the innovation chain," thereby continuously enhancing the
overall competitiveness of the entire industrial ecosystem and expediting the translation of innovative achievements
into strategic industry applications. Leveraging its investment platforms, the company integrates high-potential
targets across the industrial value chain. It has established a comprehensive presence in both the laser industry chain
and the ICT optoelectronics industry chain, while strategically expanding into sensor domains such as new energy and
MEMS, vigorously advancing the transformation and demonstration application of technological innovations.
Through mechanisms including equity participation, industrial empowerment, capital linkages, talent deployment, and
collaborative breakthroughs in core technologies, HGTECH has cultivated a deep industrial network, fostering numer-
ous innovative enterprises that possess proprietary core technologies. By signing strategic collaboration agreements
with over 30 upstream and downstream entities to promote joint innovation, the company has enhanced the integrity
and competitiveness of the energy optoelectronics and information optoelectronics industrial chains. This has estab-
lished a product evolution pathway of "R&D – Application – Enhancement – Maturity," assisting product-focused
business units in exploring new frontiers, cultivating new growth drivers, and developing new partnerships.
HGTECH COMPANY LIMITED / 2025 Environmental, Social and Governance ESG Report 27
"Management Innovation" for Product Safeguarding the "Golden Reputation"
Quality Enhancement of Intellectual Property
HGTECH comprehensively promotes a "Holistic Quality Concept," covering three dimensions: product quality, As a listed company and an innovative enterprise, HGTECH integrates intellectual property (IP) protection into the entire
service quality, and operational quality. Key indicators are established in areas such as quality management and process of corporate management as a crucial element of its development. It has formulated the "HGTECH Intellectual
lean management to re?ne management granularity and increase pro?t margins. Speci?c measures include: Property Management Measures" and its implementation rules, e?ectively implements laws and regulations such as the
improving headquarters' quality functions; establishing a quality quali?cation evaluation system; re?ning a 16-char- "Patent Law" and "Trademark Law," and continuously improves the IP management mechanism in line with the compa-
acter Group quality policy ("Accurate Requirements, Scienti?c Planning, Prevention First, Do It Right the First Time") ny's actual development situation. The company strengthens R&D management throughout the entire lifecycle to
through executive training sessions; studying the "Zero Defects" management philosophy and re?ecting on the enhance the quality of IP and scienti?c/technological achievements. It drives the full integration of IP management into
quality loss costs of PONC (Price of Non-Conformance); initiating the ?rst Lean Black Belt talent cultivation the implementation process of major special projects and key products, forming a comprehensive IP protection system
program; and introducing value stream mapping methodology for the ?rst time to sort out key projects across the encompassing patents, technical secrets, software copyrights, and other forms. A patent risk early warning and
entire value chain, linking them with belt-level talents. Through these measures, a company-wide quality awareness response working mechanism has been established. For key products of core holding companies, professional tools like
has been preliminarily formed, product market indicators have signi?cantly improved, and the company's brand
the AI-empowered Eureka system and patent search databases are utilized, combined with trademarks, patents,
value has become more prominent.
standards, and other multidimensional elements, to provide comprehensive and standardized protection, weaving an IP
protection net for specialized and sophisticated new products. The construction of the IP management team is
HGTECH consistently adheres to the "client-centric" value and implements it in speci?c work, focusing on client
strengthened, with regular training organized covering trade secrets, trademark usage, copyrights, etc., to comprehen-
concerns, ensuring batch product consistency, and guaranteeing that product quality meets client requirements and
sively enhance the capability to create, utilize, protect, and manage IP. Concurrently, legal means are used to protect
conforms to standards. The company earnestly implements and complies with domestic and international quality
management system requirements such as ISO 9001, ISO 14001, TL9000 (telecommunications industry), and rights, avoiding risks of product counterfeiting and technology leakage caused by personnel turnover, thereby e?ectively
IATF16949 (automotive industry), and possesses two categories of national CNAS-certi?ed testing laboratories. In safeguarding the company's legitimate rights and interests.
accordance with production standards of di?erent industries and internationally leading quality management
concepts, the company formulates and implements quality management regulations like the "Quality Management While strictly protecting its own IP rights, HGTECH also rigorously manages itself to ensure it does not infringe upon
Manual," "Non-Conforming Product Handling Procedure," and "Measures for Quality Reward and Punishment the IP rights of others. In the R&D and technological improvement of new technologies, processes, and products, it fully
Management," establishing a quality management system covering the entire product lifecycle from design, raw utilizes IP literature to determine correct research directions and technical routes, raising the starting point of R&D, and
material procurement, production delivery, to after-sales service. Simultaneously, through measures such as avoiding duplicate development or IP infringement disputes.
production skills training, quality and e?ciency improvement proposals, OCC (Operation Control Center) quality
improvement activities, and supplier quality performance assessments, it comprehensively enhances product, In 2025, focusing on market and client needs, and by guiding innovation in key new product and technology R&D,
service, and operational quality. HGTECH ?led a total of 433 patent applications for the year, including 220 invention patents. It also applied for 148
software copyrights and published 10 national standards and 9 industry standards where it led or participated in their
In terms of using management innovation to improve product quality, HGTECH is driven by the in-depth implemen- formulation or revision.
tation of its quality policy, promoting the shift of quality management from institutional requirements to behavior
embraced by all employees. Through a three-tiered progression of "key personnel internal training, full personnel HGTECH owns 13 national-level talent and innovation platforms, including a nationally recognized enterprise technology
transfer training, and scenario-speci?c training," it achieves 100% coverage in communicating the quality policy, center, a national-level industrial design center, national CNAS laboratories, and a post-doctoral scienti?c research
ensuring that quality awareness truly permeates every aspect of daily work. At critical nodes such as supplier workstation. The company has been successively recognized as a National Innovative Enterprise and a National
admission, R&D design, process control, and ?nished product reliability, the company fully introduces the Zero
High-tech Enterprise. It has also received honorary titles such as National "Little Giant" Enterprise Specialized in Niche
Defects management philosophy, emphasizing "doing things right the ?rst time" to reduce deviations at the source,
Sectors, and National Intellectual Property Demonstration Enterprise.
thereby building a quality assurance system covering the entire chain, continuously strengthening product consis-
tency and reliability.
To further consolidate the quality talent echelon, HGTECH has established a quality engineer quali?cation assess-
ment mechanism and held its inaugural Quality Training Camp, focusing on enhancing speci?c competencies
around actual business scenarios. Through systematic cultivation, the professional level and management e?ec-
tiveness of the quality engineer team have been signi?cantly enhanced, providing strong support for deepening
quality management. Concurrently, the company actively explores the implementation pathways of lean methods in
quality improvement, encouraging various departments to undertake special projects focusing on operational
quality. The development and application of lean tools, the exploration of modular improvement paths, and the
gradual integration of AI technology into improvement practices make quality enhancement more concrete and
quanti?able. The Group's annual improvement achievement presentation meeting and the lean study tour exchange
platform create conditions for replicating and promoting frontline improvement experiences. The e?ectiveness of
cost-down e?orts far exceeded expectations, and the lean philosophy has since extended from the manufacturing
center to a wider range of business units.
Through the aforementioned practices, HGTECH has not only achieved innovative breakthroughs in its quality
management mechanism but has also gradually built a self-iterating and continuously evolving quality management
ecosystem, providing long-term assurance for the stable improvement of product quality.
Corporate Governance Structure
The Company strictly complies with the requirements of laws, regulations, and relevant normative documents, includ-
ing the Company Law of the People's Republic of China, the Code of Corporate Governance for Listed Companies,
and the Shenzhen Stock Exchange Listing Rules. It has established the shareholders' meeting, the board of directors,
and the management team, forming a corporate governance mechanism with clearly de?ned powers and responsibili-
ties and standardized operation. The board of directors has established the Strategy and ESG Committee, the Nomi-
nation Committee, the Remuneration and Appraisal Committee, and the Audit Committee. Each committee has clearly
de?ned powers and responsibilities and performs its own functions, e?ectively ensuring the impartiality and scienti?c
soundness of the Company's governance decisions.
We and Governance
HGTECH Governance Structure Organization Chart
Shareholders' Meeting
Strategy and ESG Committee
Sound governance and compliance management are the fundamental guarantees for an Nomination Committee
enterprise's sustainable development. HGTECH continuously promotes the enhancement Board of Directors
and improvement of its corporate governance system, perfects the construction of its
Compensation and Performance Committee
compliance management system, standardizes internal control systems and institutional
development, and actively maintains good investor relations to ensure the company's
steady and robust development.
Audit Committee
Executive Management
The meeting statistics for shareholders and board of directors
The Company's Shareholders'
Meeting, Board of Directors are in 2025 are as follows:
responsible for reviewing and
approving major matters related
to the Company's development.
The Shareholders' Meeting convened 5 times
Reviewing a total of15 proposals
In 2025, the Company complied
with the requirements of the
new Company Law and abol- The Board of Directors convened 12 times
ished the Board of Supervisors. Reviewing a total of40 proposals
HGTECH COMPANY LIMITED / 2025 Environmental, Social and Governance ESG Report 31
Internal Control Construction and
Risk Management
The Company places high importance on internal control construction and risk management. During the reporting period, in
Shareholders' Meeting: As the highest authority of the Company, it makes decisions on the accordance with the provisions of the "Basic Standards for Enterprise Internal Control" and its supporting guidelines, the Com-
Company's operating policies and investment plans in accordance with the law; elects and chang- pany updated and improved its internal control system in a timely manner, establishing a scienti?cally designed, concise and
es directors ; and reviews and approves the reports of the Board of Directors. applicable, and e?ectively operating internal control system. This ensures that risk management processes are integrated into
every aspect of the Company's operations and management. The Audit Committee and the internal audit department jointly
Shareholders' form the Company's risk and internal control management organizational system, supervising and evaluating the Company's
Meeting internal control management, which mainly includes environmental control, business control, electronic information system
control, and internal audit control. Through the operation, analysis, and evaluation of the internal control system, the Company
e?ectively prevents risks in its operations and management, promoting the achievement of internal control objectives.
Board of Directors: The Board of Directors consists of 9 directors, including 3 independent direc-
In 2025, the Company engaged Daxin Certi?ed Public Accountants (Special General Partnership) as its internal control audit
tors.
institution for the year. They evaluated the e?ectiveness of internal controls for all headquarters functional departments and
As the decision-making body of the Company, its main responsibilities include appointing suitable subsidiaries at all levels. The total assets of the entities included in the evaluation scope accounted for 94.99% of the Compa-
candidates scienti?cally and reasonably in accordance with the procedures stipulated by the ny's consolidated total assets, and their total operating revenue accounted for 99.58% of the Company's consolidated operat-
Nomination Committee, convening the Shareholders' Meeting, executing the resolutions of the ing revenue. No material de?ciencies were found in the design or implementation of the Company's internal controls throughout
Shareholders' Meeting, and managing the Company's information disclosure matters, among the year.
others.
The Company’s annual Internal Control Self-Assessment Report is published on the website of the Shenzhen Stock Exchange
The Company's Board of Directors has established a Strategy and ESG Committee. This commit- together with its annual report. In addition to the supervision of the Company’s risk management and internal control system
tee is a specialized working body under the Board, primarily responsible for researching and by internal and external audits, the Strategy and ESG Committee conducts feasibility studies on the Company’s business strat-
making recommendations on the Company's long-term development strategic planning, major egies, major investment and ?nancing plans, major capital operations and asset operation projects, and provides recommen-
strategic investment decisions, sustainable development planning, and ESG matters. The commit- dations on potential risks.
tee is responsible for researching the Company's long-term development strategic planning, major
strategic investment decisions, sustainable development planning, and ESG matters, and making
Board of
recommendations to the Board of Directors on the following matters: (1) The Company's develop- Information Disclosure and
ment strategy and medium-to-long-term development plans; (2) Plans for increasing or decreas-
Directors
ing registered capital, issuing corporate bonds, merger, division, or dissolution; (3) Major asset or Standardized Operations
business restructuring, external acquisitions, mergers, and asset sales; (4) The Company's ESG
vision, ESG development strategic plan, ESG governance structure, ESG management system, The Company places high importance on information disclosure and communication with
ESG-related disclosure documents, and ESG-related risks and opportunities with a signi?cant shareholders and creditors. In accordance with the provisions of laws and regulations
impact on the Company's business; (5) Other matters stipulated by laws, administrative regula- such as the "Company Law of the People's Republic of China," the "Securities Law of the
People's Republic of China," and the "Administrative Measures for Information Disclosure
tions, provisions of the China Securities Regulatory Commission, and the Company's Articles of
of Listed Companies," the Company releases information to investors through various
Association. The committee holds regular meetings and interim meetings. Regular meetings are meetings, publications, and online platforms. These channels include the Annual General
held at least once a year. Interim meetings are convened irregularly as needed. Meeting of Shareholders, regularly published annual reports, semi-annual reports, and
quarterly reports, as well as interim announcements, prospectuses, and press releases.
Information about the Company is accessible on platforms such as the Shenzhen Stock
Exchange website, China Securities Journal, Shanghai Securities News, Securities Times,
Securities Daily, and Cninfo (http://www.cninfo.com.cn). The Company discloses periodic
reports and interim announcements as required, ensuring the content is truthful, accurate,
and complete, free from material errors, and without instances of being questioned by
regulatory authorities or media.
In 2025, the Company issued a total of 135 announcements and disclosure documents.
During the year, the Company held several large-scale performance brie?ngs and investor
communication activities, with the Chairman and senior management team actively
participating in interactions and exchanges. The Company was awarded an A rating
(highest level) in the“2024–2025 Information Disclosure Assessment of Listed Compa-
nies”by the Shenzhen Stock Exchange, and has received this honor for 10 consecutive
years. This recognition from the regulatory authorities and the broad investor community
has enabled the Company to play an exemplary role in the market.
In 2025, the Company received a series of awards, including:
• Top 100 Value Listed Companies on the Main Board by Securities Daily;
• Golden Award for Investor Relations–Outstanding IR Team by Panorama Network;
• Outstanding Award for Concern for Small and Medium Investors by Panorama Network;
• Compliance Value Communication Award by Yidong.
HGTECH COMPANY LIMITED / 2025 Environmental, Social and Governance ESG Report 33
Investor Relations Management Shareholder Returns
The Company actively implements the important requirements of the China Securities Regulatory Commission to
Investor communication methods "strengthen the investor-oriented culture of listed companies and strive to enhance the investment value of listed com-
panies." Adhering to the philosophy of creating more value for shareholders and considering the Company's sustainable
development, it continuously improves scienti?c, continuous, and stable dividend distribution decision-making and
supervision mechanisms. Dividends are distributed strictly in accordance with the pro?t distribution policy formulated in
the Company's Articles of Association and the relevant provisions of the review procedures, fully protecting the legiti-
mate rights and interests of small and medium investors and reciprocating investors' trust and expectations in the Com-
pany. Since its listing, the Company has distributed cash dividends to investors for many consecutive years, with cumu-
lative cash dividends amounting to approximately RMB 782 million since 5 years. The dividend payout ratio has gradually
Issuing announcements and hold an earnings Participate in various Accumulated number of increased, actively rewarding the vast number of investors and highlighting the Company's long-term investment value.
disclosing documents brie?ng exchange meetings investors communicated with
+ +
To promote the Company's stable and sustainable development and reciprocate investors' trust and expectations,
times
persons
during the reporting period, considering factors such as the Company's pro?tability, operational development needs,
pieces
sessions
and reasonable returns to investors, the pro?t distribution proposal for HGTECH for the 2025 ?scal year was approved
at the 22nd Meeting of the Ninth Board of Directors as follows: It is proposed that based on the total share capital of
In 2025, amidst a complex and volatile market environment, the capital market experienced ?uctuations under the 9,800,000 repurchased shares), a cash dividend of RMB 2.50 per 10 shares (tax inclusive) will be distributed to all
in?uence of multiple factors. The Company's Board of Directors placed signi?cant emphasis on investor relations shareholders. No bonus shares will be issued, and no capital reserve will be converted into share capital.The total cash
management, supervising and guiding the Company to promptly address market concerns, accurately and compre- dividend to be distributed amounts to RMB 248,925,676.75.The remaining undistributed pro?t of RMB 495,017,189.22
hensively respond to and clarify issues of market interest, and actively communicate the Company's long-term will be carried forward to the next ?scal year.
value and development strategy, thereby stabilizing market sentiment and enhancing investor con?dence.
During the reporting period, the Company maintained high-frequency, in-depth communication with institutional
investors through both online and o?ine channels, providing updates on the Company's development progress.
Concurrently, the Company maintained communication with regulatory authorities and ?nancial media, and contin- Cash Dividends on Ordinary Shares in the Past Three Years
uously strengthened its engagement with small and medium investors. Leveraging diversi?ed communication
channels such as performance brie?ngs, shareholder meetings, on-site research, Hudongyi interactive platform, For the fiscal year
and investor hotlines, it proactively conveyed the Company's development value, carefully listened to investor
inquiries and suggestions, and facilitated an objective, comprehensive, and in-depth understanding of the Compa-
ny. This has fostered a long-term, stable, and positive interactive relationship with investors, consolidated share-
holder consensus, and contributed to the Company's long-term, stable, and robust development.
For the fiscal year cash dividend (pre-tax) amount:
cash dividend (pre-tax) amount:
For the fiscal year cash dividend (pre-tax) amount:
draft
Share Repurchase：
In 2025, the Company proactively implemented share repurchases. Through centralized auction trading, the Com-
pany repurchased a total of 9.8 million shares of the Company’ s stock, accounting for 0.97% of the total share
capital.The repurchased shares will be used for the employee stock ownership plan or equity incentive plans at an
appropriate time in the future.This has not only e?ectively safeguarded the Company’ s value and market con?-
dence, but also laid a solid foundation for improving the long-term incentive mechanism.
HGTECH COMPANY LIMITED / 2025 Environmental, Social and Governance ESG Report 35
Compliance Management
Stakeholder Communication System Development
Guided by its operational philosophy of "providing satisfactory products to society, creating space for innovation for
employees, and generating substantial returns for shareholders," the Company is committed to its responsibilities The company continuously improves its four-level compliance organizational structure, coordinating and integrating
towards stakeholders including shareholders and investors, clients, employees, and value chain partners. It maintains resources from the group headquarters, subsidiaries, and external legal counsel to steadily advance the enhancement
regular communication with stakeholders through various channels and methods, actively soliciting their opinions and of its compliance management system.
feedback.
Adhering to the principle of advancing all reform initiatives, including the "Science and Technology Reform Action,"
within the legal framework, the company strengthens legal review based on the principles of "risk orientation, serving
Stakeholders Key Concerns Communication and the overall strategy, comprehensive coverage, and targeted focus." It re?nes the contract management system and
Response promotes the development of a full lifecycle approach to contract management. Key compliance manuals have been
issued in critical areas, including the Compliance Guidelines for Preventing Occupational Crimes, Ten Compliance Rules
Standardized corporate governance for Managers, Legal and Compliance Risk Alerts for Technology Companies, and Essential Knowledge of Common
Economic performance Shareholders' meetings and board meetings Overseas Compliance Risks for Chinese Enterprises. Focusing on key personnel, critical processes, and signi?cant
Shareholders and Investors R&D and innovation Regular information disclosure events, the company conducts regular and ad hoc compliance inspections covering contracts, litigation cases, and
Protection of shareholders' rights Expanding investor communication channels trade secrets, and oversees the implementation of corrective actions. It organizes "Business-Law Workshops" to
integrate business and legal perspectives and conducts multiple training sessions, directly empowering over 2,500
Investor relations management
participants. By consolidating resources from more than 40 domestic and international law ?rms and updating stan-
dard contract templates for sales, procurement, infrastructure projects, and technology collaborations, the company
Legal and compliant operations strives to build a robust compliance ecosystem.
Product quality and safety Research and inspections
Regulatory Authorities Promoting economic development Daily communication and
Environmental management information reporting
Data Security and Clients
Social responsibility
Information Protection
Online o?cial website / o?cial WeChat
Product quality and safety In the digital era, information security has become one of the core elements of enterprise operation, which is directly
O?ine exhibitions and promotional activities
Promoting product and service innovation related to the enterprise’s reputation, client trust, and business continuity. HGTECH has been continuously carrying
Professional sales team
out and improving its information security work. In order to ensure the comprehensiveness and e?ectiveness of client
Clients Intellectual property protection Factory open days
data security, the company has established a multi-level and all-round information security architecture.
Information security and privacy protection After-sales service
Protecting client rights Regular visits System Security
Satisfaction surveys Physical Security
Manage and control system resources,
Protect the physical facilities, equipment, operational activities, and users of the
Establishing a reasonable compensation or areas of the information system from system, which serves as the foundation
Occupational health and safety and bene?ts system unauthorized access and misuse. of information system security.
Safeguarding employee rights and bene?ts Diversi?ed training system
Employees Good working environment Open communication channels Information Database Security
Sound career development system Internal cultural publications Security
Architecture Ensure the con?dentiality, integrity,
Festival and recreational activities
Information security and privacy protection consistency, and availability of the
Satisfaction surveys information in the database.
Network Security
Performing contracts in accordance Ensure that the hardware and software of the
Sustained and stable cooperative relationship with the law network system, as well as the data within the Terminal Security
Suppliers and Partners Open and fair procurement procedures Technical exchange meetings system, are not subject to accidental or malicious
changes, damage, or leakage. Guarantee the Protect the security of computer ter-
Compliance with business ethics Supplier bidding and audits minals as the infrastructure for infor-
continuous, reliable, and normal operation of the
Supplier training system and the uninterrupted network services. mation storage, transmission, and
application processing.
Accurate and truthful information disclosure Online o?cial website / o?cial WeChat Institutional Guarantee:
Media Product R&D and innovation Media open days
HGTECH has established a comprehensive information security management system, encompassing information security
Maintaining good cooperation Strengthening daily communication
management regulations, system access management regulations, operation and maintenance management regulations, etc.
At the core holding company level, the company has established regulations for computer room security management, laptop
management, personal terminal behavior management, and removable media usage and disposal, as well as procedures for
Engaging in public welfare and charity Social welfare projects
Communities and data authorization applications, data anomaly event management standards, and emergency response mechanisms. By
Promoting industry development Community volunteer activities conducting log reviews and supervision of relevant data and client information, data security and client privacy are fully
the Public
Environmental management Strengthening environmental management guaranteed.
HGTECH COMPANY LIMITED / 2025 Environmental, Social and Governance ESG Report 37
Anti-Bribery and Anti-Corruption
The Company consistently regards anti-bribery and anti-corruption work as the lifeline of its compliant operations,
Information Security Management Measures constructing a risk prevention and control network through a multi-level system. The Company fully leverages the
guiding role of the "key minority." The management teams of the Group and its subsidiaries sign executive compli-
ance commitments annually, conduct compliance oath-taking, and publicly demonstrate their compliance stance.
Through systems such as the "HGTECH Co., Ltd. Compliance Management System" and the "HGTECH Co., Ltd.
Internal Audit Punishment Management Measures," the Company establishes and improves a self-discipline and
integrity system, highlighting anti-bribery and anti-corruption requirements. By distributing and promoting the
Construct the network according to the third-level security protection requirements, achieving high-level security "Integrity and Compliance Handbook" and conducting training, employees are prohibited from engaging in commer-
standards in the ?ve aspects of physical environment, network, host, application, and data, ensuring data integrity, cial bribery and corrupt practices in any form, including but not limited to directly or indirectly giving and accepting
con?dentiality, and business continuity. Build a multi-layered protection system through technical and manage- cash, gifts, marketable securities, physical goods, kickbacks, travel and entertainment expenses, as well as non-pe-
ment means.
cuniary bene?ts such as employment opportunities.
Deploy ?rewalls, web application ?rewalls (WAF), threat detection and prevention systems to avoid external
Network network attacks.
Security Deploy Internet behavior management systems to regulate users’ Internet behavior, improve network security, The Company publishes its reporting hotline and email address through public channels, and issues integrity propos-
protect corporate information security, and enhance employees’ work e?ciency simultaneously. als during major festivals. It exposes violations on the "Compliance Exposure Platform" and tracks accountability and
Deploy bastion hosts to achieve access control, auditing, and monitoring, preventing illegal access and operations.
Deploy virtual private networks (VPNs) to enhance network security and privacy, encrypt data transmission, and disposal. The HGTECH compliance evaluation standards are updated annually and incorporated into the manager's
ensure the security of remote access. annual salary assessment, promoting the implementation of compliance management actions from top to bottom. By
Deploy access control systems to ensure compliant access and prevent security risks. setting up a "Suggestion Box" to unblock reporting and suggestion channels, daily supervision, discipline enforce-
ment, and compliance management are strengthened and re?ned. At the same time, it actively carries out pairing
and co-construction activities such as "Intelligent Integrity, Clear Breeze" with client enterprises, deepening the
Deploy uni?ed anti-virus software, issue strategies from the background to strengthen the operating system and integrity concept through shared learning and construction, and continuously consolidating the defense line for clean
System ensure system-level security.
employment. In supply chain management, it is clearly stipulated that anti-bribery and anti-corruption clauses are
Strengthen password management strategies.
Security Regularly conduct vulnerability scanning and patch updates for the system, and promptly ?x known security embedded in cooperation agreements, requiring suppliers to sign integrity commitments. Integrity reminder emails
vulnerabilities. are sent quarterly to ensure both parties jointly abide by the code of business conduct. Concurrently, for the supplier
admission process, a strict anti-unfair competition review mechanism has been established. Departments such as
audit and procurement jointly conduct thorough veri?cation of supplier relationships using public platforms like
Use an all-in-one backup device for data backup, integrating backup, storage, and recovery functions to protect Qichacha. Enterprises with con?icts of interest or potential unfair competition risks are subject to a "one-vote veto"
Data data security, quickly restore services, and ensure business continuity.
rule, resolutely eliminating violations and e?ectively building a "pro-clean" and win-win cooperative relationship.
Deploy cloud desktops to centrally manage and control R&D data, enhance data security, support remote collab-
Security oration, ?exibly expand resources, and reduce operation and maintenance costs.
Use encryption software to encrypt R&D data in real time to ensure data con?dentiality, integrity, and availability.
Anti-Unfair Competition
Improve information security management systems and processes. Through regular security audits, risk assess-
ments, and other activities, ensure the e?ective implementation and continuous improvement of information The Company adheres to the principles of honesty and trustworthiness, equal negotiation, and mutual bene?t and
Management security measures.
win-win results. It upholds business ethics, complies with relevant laws and regulations, and conducts market compe-
Security Implement strict access control strategies to ensure that only authorized users can access sensitive information.
Regularly review the account permissions of application systems and promptly clean up unnecessary permission tition in accordance with the law. The Company places the concept of fair competition above its own economic inter-
settings. ests, resolutely prohibiting acts of unfair competition and other behaviors that violate business ethics and disrupt the
order of market competition. The Company promotes and implements its anti-unfair competition requirements
through regular training and the distribution of warning cases.
Employee Regularly conduct information security training for employees to improve their security awareness and prevention
capabilities.
Awareness Educate employees to identify common network attack methods, such as phishing emails and malware, and learn
of Security how to prevent them.
Data Encryption: Encrypt client information during storage and transmission to prevent the illegal acquisition or
Client tampering of information during the storage and transmission processes.
Information Access Control: Implement strict access control strategies to ensure that only authorized personnel can access
client information. At the same time, regularly review and update access permissions.
Security Security Audit: Regularly conduct security audits of the use of client information to ensure that the use of client
information complies with laws, regulations, and company policies.
Supply Chain Security
Regarding supply chain management, in order to standardize the bidding activities in the supply chain and promote
the re?ned management of procurement, the company has formulated the “Measures for the Management of Supply
Chain Bidding of HGTECH”. A procurement committee has been established at the group level, and the construction
of the group-level supply chain management system of HGTECH has been launched and continuously promoted. It
supervises the implementation of the supply chain management system and major special projects. The procurement
departments of each subsidiary are responsible for the quali?cation examination and daily management of suppliers
to ensure that the procurement work is “open, fair and just”.
In terms of supply chain management capabilities, the company is committed to promoting the high-quality develop-
ment of the supply chain ecosystem. Through the strategy of “controlling resources upstream and channels down-
We and Partners
stream”, it continuously optimizes and improves the supplier admission and evaluation system, and builds a stable,
e?cient and sustainable supply chain management system. This ensures that the introduced suppliers meet high
standards and strict requirements, prevents supply chain risks, lays a solid foundation for the high-quality develop-
ment of the supply chain ecosystem, and provides strong support for the long-term development of the company.
Controlling supplier admission is an important way to ensure the quality of goods or services from the
Supplier source. The company strengthens the management of supplier performance evaluation by strictly
Admission implementing the “Measures for the Management of Supplier Development and Evaluation”, and seeks
The Company steadfastly upholds an integrity-based for excellent supplier partners to establish long-term and stable cooperative relationships with them.
business principle, attaches great importance to its The company adopts uni?ed standards for the development, selection, evaluation and management of
suppliers to ensure that suppliers enjoy equal rights to know, choose and participate. It scores suppli-
collaborative relationships with suppliers and clients, ers according to the procurement amount, importance, delivery e?ciency and quality, and conducts
hierarchical management.
fully respects and protects their legitimate rights and
interests, and adheres to the principles of integrity, The list of supplier admission quali?cations includes
fairness, and impartiality. By doing so, it jointly cre-
Basic Quali?cations Business license / credit certi?cate / authorized agency license
ates a sound cooperation ecosystem and atmosphere,
continuously pursues the goal of mutual bene?t, and Professional Product quality certi?cation report /industry admission certi?cate (such as
Quali?cations special equipment quali?cation) /quality management system certi?cate
achieves win-win outcomes.
Social responsibility compliance certi?cate /environmental management
Additional Veri?cation system certi?cation / etc
In order to further standardize the company’s procurement behavior, ensure the quality and e?ciency
Procurement of the company’s material procurement, and reduce procurement costs, each subsidiary has formulated
the “Procurement Management Measures” in combination with its own actual situation. The procure-
Process ment process implements three-level business management covering requirements, procurement, and
warehousing.
Collect procurement requirement information and formulate a demand
plan; Communicate with the procurement management department
Requirements about the model selection; Fill in the “Procurement Application Form”
and submit the demand application.
Purchase management department is responsible for: standardized
management of material coding; supplier sourcing, bidding, pricing,
Procurement small-batch trial and bulk procurement; risk warning; supplier perfor-
mance assessment.
Perform acceptance and warehousing, and warehouse management
of purchased materials in accordance with the Incoming Inspection
Warehousing Control Procedure;
Inventory / Dead Stock Early Warning.
HGTECH COMPANY LIMITED / 2025 Environmental, Social and Governance ESG Report 41
The Company has formulated the "Supplier Performance Assessment Management Measures" to
Protect Clients’ Rights and Interests
Supplier conduct objective and comprehensive evaluations of suppliers from multiple dimensions, including
Assessment supplier scale, product quality, order delivery, and after-sales service, through measures such as
inspections, performance assessments, and capability evaluations. Suppliers are classi?ed into four
tiers (A, B, C, D) based on the assessment results, enabling the selection of the best partners and
suppliers while eliminating underperformers. This process aims to establish a roster of excellent core
partners and suppliers, thereby fostering a robust business ecosystem for the Company.
Reduce the procurement share. Issue a notice to stop supply
Give priority to placing Maintain normal procure- According to the assessment and require improvement
orders with such suppliers ment. The Quality Depart- results, issue recti?cation warn- within one month. If there is
and increase the order ment shall, through data ings to the suppliers and require
no improvement after the
quantity; Relax inspection analysis, support the sup- comprehensive recti?cation. If
re-evaluation, the supplier
or sampling inspection. pliers to continuously there is no improvement, the
supplier will be downgraded to will be directly eliminated.
improve.
level D.
Improve the supplier admission and evaluation system, strictly control the situation where
Improve Supply technical personnel of product lines designate suppliers, and achieve the whole-life cycle
management of suppliers.
Chain Management
Capabilities Optimize the supply chain process, enhance the collaborative e?ciency of the supply chain,
take into account both joint and coordinated management and di?erentiated competition,
and establish a more e?cient, ?exible and competitive supply chain management system.
Strengthen risk control and management, enhance the awareness of integrity and
self-discipline, and ensure the legality and compliance of operations.
Supporting the High-Quality Development of
Small and Medium-Sized Enterprises
In 2025, the company organized activities such as quality monthly meetings, quality quarters, and on-site audits to
provide management guidance to some upstream enterprises.Case Study:
To e?ectively enhance the quality management and standards of its suppliers (small and medium-sized enterprises),
HGGAOLI, in collaboration with internal and external expert resources, carried out a series of targeted training
programs for suppliers. These included specialized training on the 8D methodology, OST report/PPAP submission
requirements and problem explanation, change management training, PPAP production part standard procedure train-
ing, SMT key control items training, and foreign object control. In addition, several technical exchange activities were
organized, including but not limited to inviting experts from friction welding equipment manufacturers and sealing ring
suppliers for on-site technical discussions and benchmarking exchanges. Through comprehensive and diverse
empowerment initiatives, the company e?ectively helped suppliers enhance their overall competitiveness, achieving
coordinated development between supply and demand sides.
HGTECH COMPANY LIMITED / 2025 Environmental, Social and Governance ESG Report 43
Client Satisfaction Management
The Company consistently values client feedback and conducts client satisfaction measurements in strict accordance
with the established "CX08-01 client Satisfaction Evaluation Procedure." Data is primarily collected through electronic
questionnaires and telephone interviews. Upon completion of client satisfaction surveys, the Company requires each
subsidiary to hold summary and analysis meetings to re?ect on the measurement methods and survey results, and to
generate client satisfaction reports. This process continuously enhances the Company's service quality and standards,
strengthening its market competitiveness. Furthermore, the Company regularly conducts training for its online and
o?ine marketing personnel, such as the "Tempering Plan" training courses, to continuously improve their marketing
capabilities and client service skills, thereby enhancing the quality of client service.
In 2025, HGTECH and its subsidiaries received numerous awards and recognitions, including: Qianxing Award "Excel-
lent Production Line Equipment Award", Deye Shares "Excellent Quality Award", Skyworth Electrical "Excellent Quality
Award", Hisense Group "Strategic Partner Award" and "Quality Craftsmanship Award", TCL Industries "Outstanding
Supplier", Li Auto "Excellent Quality Award" and "E?cient Cooperation Award", SAIC-GM "Enterprise Award", Haier
Supplier Global Strategic Cooperation Award, EVE Energy "Excellent Quality Award". Additionally, the Inland New
Energy Ship Manufacturing Demonstration Base Project was recognized as a Shandong Provincial Advanced-Level
Intelligent Factory, and the Company received the Changhong "Annual Excellent Partner" award, among other honors
and commendations.
Environmental Management System
HGTECH integrates the concept of sustainable development into the company’s operation, deeply learns and imple-
ments Xi Jinping’s idea of ecological civilization and takes the company’s social responsibility work into overall
consideration. In response to the “dual carbon goals”, HGTECH integrates the concept of green, low-carbon and
sustainable development into the company’s high-quality development strategy. Complying with the trend of industry
change under the concept of green energy-saving, HGTECH further promotes the construction of green industrial
manufacturing system, emphasizes the catalytic role of industrial development in driving revitalization, and strictly
implements regulations related to environmental protection, emission reduction, production safety and labor law, then
promoting the sustainable development of the company and whole society.
Environmental Compliance Management
To ensure the orderly implementation of environmental management work,
We and the Environment
HGTECH has formulated a series of environmental protection systems, such as
Environment and Occupational Health and Safety Management Manual, Proce-
dures for Environmental Factors Identi?cation, Evaluation and Control, Safe
Production Responsibility System and Safety Management System, in accor-
dance with Environmental Impact Assessment Law of the People’ s Republic of
China and other relevant regulations. According to the requirements of GB/T
Guidance for Use, GB/T 45001/ISO 45001 Occupational Health and Safety
Management Systems—Requirements with Guidance for Use, and AQ/ T9006
Basic Speci?cations for Work Safety Standardization, and HGTECH adheres to
the principle of safety ?rst and environmental protection, combined with the
HGTECH is deeply integrated into the national "Dual Carbon" strategic
characteristics of relevant EHS management activities involved in the company
framework, consistently elevating the concept of green development to a product design, development, production and service. Additionally, HGTECH es-
strategic position within the company. Committed to the new development tablishes EHS management system and EHS Management Manual which clearly
de?nes EHS management system policies, objectives, and operational proce-
philosophy of innovation, coordination, green development, openness, and
dures, in accordance with relevant laws, regulations and other requirements.
sharing, the Company continuously re?nes its environmental management
HGTECH actively responds to the industrial green development plan— Made in China 2025, carries out standard-
system, strengthens resource recycling, and enhances energy consumption
ized and normalized management in strict accordance with ISO14001:2015 Environmental Management Sys-
control. Through ongoing exploration in the practice of green, low-carbon, tems—Requirements with Guidance for Use, ?rmly implements the national environmental policies and regulations,
and sustainable development innovation, HGTECH is making every e?ort to strictly enforces the national, local and industrial standards, also analyses, predicts and evaluates the impact on the
ecological environment in advance. HGTECH has continuously increased investment in energy-saving, emission
contribute to the realization of the "Dual Carbon" goals.
reduction and technological transformation, and taken the initiative to phase out ine?cient production equipment.
Based on ensuring that discharge of wastewater, waste gas, noise and solid waste meets the regulatory standards,
HGTECH further promotes the lean management, continuously improves the products’ process to enhance the
treatment e?ciency of three-waste and energy utilization, ?nally implements green manufacturing, and commits
itself to the creation of green factory.
The safety and environmental protection departments of HGTECH and subsidiaries are responsible for the estab-
lishment, implementation, maintenance and improvement of the environmental protection system. In 2024, HGTECH
was awarded the Certi?cate of Environmental Management System, and all its subsidiaries passed the supervision
and audit of the environmental management system and hold the certi?cates . HGTECH reviews the implementation
of environmental protection related regulations and the operation of environmental protection facilities of each
subsidiary from time to time, and corrects behaviors that are not in line with the company’ s environmental protec-
tion policy, then proposes recti?cation measures. HGTECH regularly environmentally monitors the ‘three wastes’
on key emission enterprises, and make sure that the annual environmental monitoring results falls within the
requirements of relevant laws and regulations. HGTECH has built an energy statistics system and power consump-
tion monitoring platform, which can conduct monthly statistical analysis to improve the secondary measurement of
water and electricity. The Subsidiaries like HGGaoLi and HGImage both have obtained pollutant discharge permits.
For more information about environmental management performance, please refer to “Key Performance Table -
Table 2” .
HGTECH COMPANY LIMITED / 2025 Environmental, Social and Governance ESG Report 47
HGGAOLI: CDP disclosed a Supplier Engagement Assessment (SEA) overall score of A-. From January to December
Environmental Compliance Management Cases: 2025, the company's rooftop distributed photovoltaic power generation reached 4,092,800 kWh. In coordination with
the third-party veri?cation agency designated by the Provincial Department of Ecology and Environment, the compa-
ny completed the inventory of its 2024 corporate carbon emissions data, which amounted to 25,855.6 tCO₂. An
appeal was ?led to change the carbon allowance calculation method from the historical method to the historical
which clearly de?nes its environmental management policy. The Company commits to establishing and
intensity method. As a result, the allowance compliance gap was upgraded to a surplus of 3,542 tons, saving approxi-
maintaining an e?ective environmental management system, continuously improving its environmental perfor-
mately RMB 60,000 in costs, and reducing compliance expenses to RMB 123,899.
mance, and promoting the harmonious development between the enterprise and the environment. Concurrently,
it actively promotes and educates on its environmental policy and objectives to enhance the environmental
awareness and capabilities of all employees. During the reporting period, the Company conducted environmen-
tal protection knowledge training and hazardous waste classi?cation management training covering multiple Green Products: Responding to the "Dual Carbon" Goals
departments. HGGAOLI has successfully met the requirements of the annual surveillance audit for the HGTECH actively responds to the "Dual Carbon" goals by improving processes, upgrading production equip-
GB/T24001-2016/ISO14001:2015 environmental management system standard and has obtained the corre- ment, building green factories, researching and providing lightweight and intelligent green products and services,
sponding certi?cation. and re?ning and strengthening management. These e?orts support the green transformation and upgrading of
the manufacturing industry, empower green and low-carbon development, and contribute to the construction of
System Name Certification Name Certifying Body Certification Date Validity Period
ISO14001：2015 Environmental Management System Intertek 2025/6/24 2028/7/8
ISO45001：2018 Occupational Health and Safety Management System Intertek 2025/6/24 2028/7/8
ESD S20.20：2021 Electrostatic Discharge Control System TUV Rheinland 2024/12/27 2025/12/26
ISO5001：2018 Energy Management System Certification Zhongqi Huaxin 2025/4/24 2028/4/23
ISO14064-1 2024 Greenhouse Gas Verification Statement Renfeng Certification 2025 /
ISO14067?2018 Product Carbon Footprint Verification TUV NORD 2024 /
After years of sustained environmental investment, in October 2025, Jingmen Image was o?cially upgraded Tire Mold On-Line Intelligent Laser Cleaning Equipment
from an Environmental Level D enterprise in the packaging and printing industry to a Level B perfor-
mance-leading enterprise. The company has achieved an advanced industry level in environmental governance, Laser cleaning technology utilizes a laser with narrow pulse width and high power density on the surface of the
process equipment, and emission control, e?ectively enhancing its green development competitiveness and object to be cleaned. Through the combined mechanisms of rapid vibration, vaporization, decomposition, and
laying a solid foundation for compliant operations and high-quality development. plasma stripping, contaminants, rust, or coatings on the surface are instantly evaporated and stripped away,
achieving surface cleaning. The advantages of laser cleaning, including being non-contact, environmentally
friendly, e?cient and precise, and causing no damage to the substrate, make its application scenarios versatile.
Addressing Climate Change
HGLASER：Conducted a self-evaluation based on the newly released national standard "Green Factory Evaluation
General Principle" (GB/T36132-2025). Following a comprehensive assessment, the enterprise demonstrated excel-
lent performance in energy consumption, resource utilization, pollutant emissions, and environmental management,
successfully passing the annual evaluation and maintaining its quali?cation in the dynamic green factory management
database. In terms of energy low-carbonization, the enterprise continuously optimized its energy structure and
actively promoted energy-saving technologies. Currently, the park's energy consumption is singular, relying solely on
electricity. Through enhanced energy management, the company e?ectively reduced its carbon emission intensity
during production processes. By the end of 2025, the park initiated a photovoltaic power generation project, laying
photovoltaic modules covering an area of 13,000 square meters. Regarding resource e?ciency, the enterprise imple-
mented a customized batch procurement model, precisely ordering standard components according to production
plans, e?ectively reducing inventory and material waste. Simultaneously, relying on information systems such as ERP
and MES, it achieved re?ned control throughout the entire process, optimized production scheduling and material
allocation, and signi?cantly improved the utilization rate of raw materials.
HGTECH COMPANY LIMITED / 2025 Environmental, Social and Governance ESG Report 49
EV Battery Insulation Film Intelligent Laser Cleaning Equipment Smart Factories
Used for the automated cleaning of insulation ?lm on reworked battery cells, replacing the existing manual cleaning To date, HGTECH's intelligent manufacturing business segment serves clients across key sectors of the national econ-
omy, including shipbuilding & marine engineering, energy equipment, construction machinery, steel structures, and new
process.
energy materials. It has provided over 700 enterprises with intelligent manufacturing-related services covering top-lev-
el design planning, production line planning and implementation, warehousing and logistics integration, and digital
The battery cell is placed at the cleaning station using a mechanical structure or robot. By rotating the cell and moving
products. The company has received numerous national honors, including the development of 12 billion-yuan-level
the galvanometer, full-scale laser cleaning of the cell is achieved.
smart factories and the creation of industry-?rst applications for smart factories in multiple sectors. This has facilitat-
Reduces Harmful Dust Absorption: A line-scanning laser is used to remove the insulation ?lm from the battery cell.
ed the digital and intelligent transformation and upgrading of numerous smart factories, including those at China
While removing the ?lm, the generated harmful dust is simultaneously absorbed, thereby preventing explosions and
Merchants Industry (Weihai) Shipyard, Wison New Energies, Hubei Guangji New Energy Shipbuilding, Jining Energy New
enabling direct exhaust. Energy Shipbuilding, Jiangnan Shipyard, Zoomlion, Taiyuan Heavy Industry, Weichai Lovol, Shunte Electric, and Jiangsu
Huachen.
In 2025, HGTECH continued to deeply cultivate the shipbuilding industry and energy equipment sector, successfully
signing projects such as the "China Merchants Industry (Weihai) Shipyard Digital Green Smart Factory," the "Wison
Clean Energy Startup Base Intelligent Material Preparation Line," and the "Hubei Provincial Intelligent New Energy Ship
Industrial Park Joint Workshop Intelligent Production Line." In December 2025, multiple projects for the "Jining New
Energy Shipbuilding Smart Factory" successfully passed acceptance, receiving high recognition and praise from the
client. This project was selected for the 2025 Shandong Provincial Advanced-Level (provincial) Smart Factory list. The
project innovatively applied independently developed high-end laser cutting equipment, laser hybrid welding equipment,
and full-format multi-head marking and coding equipment. It adopted multiple self-developed new-generation infor-
mation technologies, including intelligent generation and recognition technology for cutting lines, intelligent hybrid
nesting technology, weak feature high-precision recognition and positioning technology, an AI + vision intelligent
sorting system, a yard management system, an intelligent central control system, and a digital twin system. This
achieved intelligence and reduced manpower across the entire process, from steel warehouse entry/exit, yard manage-
ment, loading/unloading, marking, cutting, sorting, logistics transfer, plate frame assembly welding, sub-assembly
?tting and welding, to longitudinal member ?tting and welding. The sub-assembly ?tting and welding production line
Laser Intelligent Manufacturing Series Solutions utilizes automatic ?tting and tack welding technology, overcoming industry technical barriers and obtaining an invention
patent (ZL 202411631986.2), achieving a welding pass rate of up to 98%. After project completion, the production
for the Hydrogen Energy Industry
e?ciency of hull components increased by 50%, overall design e?ciency improved by 10%, operating costs were
HGLASER presents a comprehensive "laser + automation" factory solution for the entire hydrogen industry chain, reduced by 20%, the ?rst-pass yield rate of products increased to 95%, energy consumption per unit of output value
directly supporting the dual carbon goals and the high-quality development of the green hydrogen industry. decreased by 15%, the CNC rate of key equipment exceeded 95%, the data acquisition rate reached over 98%, and
Fuel cells are core equipment for zero-carbon hydrogen utilization, e?ciently converting green hydrogen into electricity the self-developed rate of hardware and software for the intelligent system solution exceeded 95%. The technological
with no combustion and zero emissions throughout the process. This supports deep decarbonization in transportation, process level is ranked ?rst in the domestic inland new energy vessel manufacturing industry, promoting the standard-
industry, and distributed power generation, signi?cantly reducing end-terminal carbon emissions. ized development, industrial integration, and large-scale application of inland new energy vessels.
Alkaline electrolyzers are key carriers for green hydrogen production, converting renewable electricity such as wind and
solar power into green hydrogen. This enables large-scale storage and cross-regional allocation of clean energy, In the ?eld of new energy equipment, HGTECH successfully signed projects such as the "Jiangsu Huachen New Energy
Power Equipment Digital Intelligence Factory Project" and the "Ningbo Aoneng Electric Intelligent Welding Production
replacing fossil fuel-based hydrogen production at the source and driving the low-carbon transformation of the energy
Line Project." Integrating the production process of new energy oil-immersed transformers, HGTECH built an intelli-
structure.
gent production line for Jiangsu Huachen encompassing cutting and blanking, automated welding, and warehousing
logistics. The main products processed are new energy oil tanks, achieving a full-process operation from raw material
These two high-end production lines leverage laser intelligent manufacturing to ensure high performance, high reliabil-
warehousing – cutting and blanking – automatic sorting – AGV transfer – automated welding – painting. Upon
ity, and mass production of equipment, accelerating the closed-loop implementation of green hydrogen "produc-
completion, it is expected to produce 30 units per day, with an automation rate of over 80% and equipment utilization
tion-storage-transportation-utilization". They provide solid equipment support for global carbon neutrality and the
rate of over 85%. This solves multiple problems in the oil tank production process that severely restrict enterprise
development of the green hydrogen industry. development, such as low welding e?ciency, di?cult production scheduling, and information opacity.
HGTECH COMPANY LIMITED / 2025 Environmental, Social and Governance ESG Report 51
Application of Automotive Lightweighting
Laser + Intelligent
Manufacturing Pioneers the Automotive Industry’s New Journey Toward Low-Carbon Transition
Specially developed for automotive hot-formed components, this intelligent laser processing system e?ortlessly cuts
Driven by “dual carbon goals”, new energy vehicles are entrusted as a historic mission of our era. As an through ultra-high-strength steel up to 2000 MPa. It enables precision thinning of hot-formed high-strength steel sheets,
advanced production tool, laser is widely used in the design, process and production of new energy achieving 20% weight reduction per component—making automotive materials thinner, lighter, yet harder and stronger.
vehicles, etc. HGTECH actively explores the typical application of advanced laser technology in the manu-
facturing of new energy vehicles, and assisting the traditional automotive industry in the upgrading of
intelligent manufacturing.
PTC Heater
Typically, the weight of a single PTC heater is around
pack, the heater’ s volume can be reduced by 10% Integrated Laser Welding Equipment
while maintaining the same power output, enabling an
optimal balance of high performance and light weight.
for A utomotive Door Rings
Compared with the traditional stamping-welding tech-
nology, the application of the integrated double door
New Energy Battery Pack Module ring laser welding thermoforming solution reduces the
and Battery Box (Tray) weight of the door ring parts by about 10k, increases
the material utilization rate to 71.9%, and improves the
Welding automation production line replaces steel with collision safety performance of the local area, which is
aluminum to achieve “weight reduction” of the body. an important path for the lightweighting of the steel
The unique welding anti-deformation technology of parts of the body-in-white to be realized.
HGTECH can control the welding seam precision at
pack shells. Also it can reduce the weight of the battery
pack by about 26.7%, bringing a new choice of process Solar/Light/Rain/Defogging Sensor
with lighter quality and higher strength.
It is a multi-functional integrated sensor that combines
solar, rain, temperature & humidity monitoring and HUD
functions into a compact unit. It compacts multiple
Body-in-White Roof Panel Laser Welding separate sensors into a single unit that weights less
Automation Production Line than 20g, enabling intelligent bus control and functional
The ?rst all-aluminum body laser welding production integration.
line independently built by HGTECH reduces the edge
width of parts and connecting auxiliary materials by
about 20%, and further reduces the weight of the
body-in-white, and still maintains the stability of the
equipment, welding speed and strength.
Tire Mold Laser Cleaning Intelligent Equipment
Low-carbon Automation, High-end Laser Equipment to Help Tire Industry Transformation
Pneumatic tires are the “feet” of automobiles. As an indispensable component in automotive manufactur-
Automotive Lightweighting ing, pneumatic tires are vital to ensuring safety, water drainage, grip, and driving comfort during use—all
of which depend on regular cleaning of tire molds . However, traditional tire mold cleaning methods su?er
from low e?ciency, high energy consumption, and signi?cant pollution, failing to meet modern tire produc-
On the basis of keeping strength and safety, automotive lightweighting is to reduce the overall vehicle tion demands for energy savings, emission reduction, and low-carbon sustainability. Laser cleaning tech-
mass as much as possible, improve the power performance of automotive and to reduce fuel consumption. nology, non-contact, abrasion-free, and eco-friendly solution, will replace the traditional cleaning process
HGTECH empowers the automotive industry transformation with “Laser + Intelligent Manufacturing”. The inevitably.
evolution toward automotive lightweighting—encompassing advanced material processing, structural and
modular design methodologies, and next-generation joining technologies—demands parallel innovations HGTECH independently researches and develops “Tire Mold Laser Cleaning Intelligent Equipment”.
HGTECH has overcome the laser, cleaning head, vision guidance technology and many other core compo-
in manufacturing processes. HGTECH drives this industrial transformation through its “Laser + Intelligent
nents and processes, fearless of high temperature “baking test”. The equipment can make the dirt swept
Manufacturing” solutions, so laser cutting and welding technologies, with their unique advantages in away if “not dismantle the mold”, also can clean a pair of tire molds online at 45 minutes. The equipment
e?ciency, precision, ?exibility, and non-contact processing, have emerged as critical enablers of automo- can e?ectively solve those tough problems, such as “long standby time, repeated disassembly, mold wear
tive lightweighting. and tear, non-complete cleaning, environmental pollution, high energy consumption”, so as to reduce the
downtime of vulcanizer, improve the production e?ciency and tire quality. The equipment brings a new era
of “low-carbon, automated” tire mold cleaning.
HGTECH COMPANY LIMITED / 2025 Environmental, Social and Governance ESG Report 53
Environmental Protection Investment
Waste gas
In 2025, the enterprises under HGTECH have cumulatively invested over RMB 10,665,400 in environmental gover-
nance, mainly for the disposal of hazardous waste, the construction and operation and maintenance of waste gas HGGAOLI: The waste gas
treatment facilities, the improvement of on-site environmental facilities, environmental monitoring, regular monitoring treatment facility has been
of wastewater and waste, carbon emission compliance, the formulation of environmental contingency plans, environ- upgraded to a secondary acti-
mental impact assessment and acceptance, and other environmental protection expenditures . The a?liated compa- vated carbon adsorption
nies have paid environmental protection taxes in accordance with the law. device in accordance with the
"National Pollution Prevention
and Control Technology Guid-
ance Directory (2024 Edition,
Waste Disposal Restricted and Eliminated
Categories)" (Draft for Com-
ments).
HGTECH strictly abides by the Environmental Protection Law of the People’s Republic of China, Air Pollution Preven-
tion and Control Law of the People’s Republic of China, Solid Waste Pollution Prevention and Control Law of the
People’s Republic of China, Water Pollution Prevention and Control Law of the People’s Republic of China and other
laws and regulations to carry out pollutant management. HGTECH has formulated documents on sustainable devel-
opment such as Carbon Emission Management System, Prevention and Control of Environmental Pollution, Energy
Management Procedures, Clean Production Management Procedures etc. For the wastewater, waste gas, hazardous
wastes and general industrial solid wastes generated in the course of production and operation, the company has
废气在线监测
formulated an e?ective internal management system, monitored all kinds of emission indexes in accordance with the
national and regional emission standards, and carried out strict emission management, making sure that all waste
disposal is Compliance treatment and discharge. Clean production is throughout the entire process of project plan-
ning and product planning, giving priority to the use of clean production technologies, processes and equipment with
high resource utilization and low pollutant generation, and giving priority to the selection of non-toxic, non-hazard-
ous, easy to degrade or easy to recycle solutions. Through the reduction and control of environmentally hazardous Hazardous Waste
substances, promote green design and production, e?ectively preventing environmental pollution. Enhance energy
performance and reduce greenhouse gas emissions by purchasing energy-saving equipment and products, improving HGIMAGE and its subsidiaries have estab-
processes and conducting energy-saving activities. lished and strictly implemented the "Manage-
ment System for the Collection, Storage, and
Transfer of Hazardous Waste" and the
"Emergency Plan for Environmental Inci-
Management system: Wastewater Discharge Management Standards. dents." They have safely disposed of 183.07
Waste Water Discharge category: domestic sewage, production wastewater. tons of hazardous waste, including harmful
Pollution Prevention Measures: regular inspection of sewage discharge pipelines; regular sampling and
chemical substances. Additionally, they have
monitoring; environmental pollution insurance coverage; establish a chemical wastewater depository;
conducted emergency drills for environmental
recycling and disposal by a quali?ed treatment center.
incidents such as chemical leaks, focusing on
key scenarios like leak disposal and emer-
Management System: Management Measures for Exhaust Gases, Norms for Air Emissions gency rescue. These drills standardize emer-
Waste Gas
Management. gency operating procedures and further
Emission categories: volatile gases from chemical substances, exhaust gases from cutting and welding strengthen employees' safety awareness and
processes, etc. prevention capabilities.
Pollution prevention and control measures: open fume extraction equipment during production;
Management System: Waste Management Regulations, Waste and Discarded Materials Management Regulations.
Hazardous
Waste
Discharge categories: mercury-containing batteries, waste mixed hardware, waste electronic compo- Case Study on the Management of the Three Wastes
nents, waste activated carbon, chemicals, etc.
Pollution prevention and control measures: set up corresponding waste storage areas and garbage
(Wastewater, Waste Gas, Industrial Residue)
containers, and mark them; use chemical crates when turn over or transport corrosive chemical bottles. In accordance with the self-monitoring requirements of its pollutant discharge permit, HGGAOLI commissioned a
third-party institution, Hubei Lanke Testing Technology Engineering Co., Ltd., to conduct environmental testing in
Management System: Waste Management Regulation, Waste and Waste Management Regulations. 2025. Tests were carried out on the company's wastewater, waste gas, and plant boundary noise. The test
General Emission categories: waste cartons, waste metals, waste glass products, waste plastics, etc. results complied with the relevant standards. The testing frequency included organized waste gas twice a year,
Industrial Waste Pollution prevention and control measures: for recyclable waste: sold to waste collectors or direct domestic wastewater and unorganized waste gas once a year, and plant boundary noise four times a year.
recycling on its own; for non-recyclable waste: managed through a sanitation service agreement
between the property management company and local municipal sanitation department, ensuring
centralized processing in compliance with environmental regulations.
HGTECH COMPANY LIMITED / 2025 Environmental, Social and Governance ESG Report 55
Pollutant Emission Management Electricity Consumption of Production and Power Equipment
According to centralized production, each department should avoid equipment empty run, and follow the three optimal
In compliance with national environmental protection policies, HGGAOLI, a wholly-owned subsidiary of HGTECH, has estab- energy - saving status labels for equipment startup frequency in the Equipment Management Procedures (i.e., use upon
lished a comprehensive set of sustainable development documents, including the "Carbon Emission Management System," startup, intermittent shutdown, and keep running for long - term use) to determine when to switch on or o?. When the
"Management System for the Storage and Disposal of Hazardous Waste," "Noise Control Management System," "Regulations equipment shuts down or not in use, it should be turned o? and the power supply should be cut o?.
on Designated Scrapping of Waste in the Industrial Park," "Management System for Precursor (Highly Toxic) and Explosive Power equipment: According to the temperature and humidity of the workshop, refrigeration mainframe, boiler, humidi?-
Chemicals," and the "Energy Saving and Consumption Reduction Management System." These systems enable the Company er, dehumidi?er, wind cabinet, cooling water pump, chilled water pump, shall be adjusted to the most energy- saving way.
to analyze, predict, and assess potential impacts on the ecological environment in advance.
Air Conditioning Management
The Company continuously increases investment in energy conservation and emission reduction, phasing out outdated equip- During summer cooling, the temperature should not be set below 26° C; during winter heating, the temperature should
ment to ensure that wastewater, waste gas, noise, and solid waste are discharged in compliance with standards. Concurrently, not exceed 18 ° C. When the air - conditioner turns on, the doors and windows connected with outdoor area should be
it deeply promotes lean management, improves processes, enhances the e?ciency of "Three Wastes" (wastewater, waste kept closed.The water system of the central air conditioner should be cleaned once a year, improving heat exchange
gas, industrial residue) treatment and energy utilization, and actively works towards creating a green factory. e?ciency and reducing operational load.
Thanks to its rigorous management, HGGAOLI successfully changed its pollutant discharge permit to simpli?ed management.
In 2025, it passed the recerti?cation audit for its environmental management system and holds the corresponding certi?cate.
The Company achieved zero violations in pollutant emissions throughout the year, with no minor injuries or more severe
accidents, nor any environmental incidents. This has strongly promoted the sustainable development of the Company, the Water Consumption
economy, and society, setting a benchmark for green development in the industry. According to the water consumption plan issued by the Gases Usage
Municipal Water Conservation O?ce, the company strictly controlls the
Nitrogen, air pressure gas, etc.
Rational Utilization of Resources clean water, water consumption and sewage discharge.
Each subsidiary equipment management department is responsible for
All subsidiary equipment manage-
ment departments must perform
inspecting water supply pipe network, timely discovering and repairing regular maintenance on gas supply
HGTECH has always been an active responder to environmental protection, adhering to a two-way management model of leakage faults, and preventing leakage and water waste. Water usage in the systems according to the Gas
"technological transformation and management." It has formulated management systems such as the "Energy Management restrooms should be paid special attention. Close the valve in time after Supply Equipment Maintenance
System" and the "Management Speci?cation for Resource and Energy Conservation" to achieve the energy management ?ushing the toilet. Only turn on the faucet halfway when washing hands and Work Instructions.
goals of "re?ned energy management, scienti?c energy metering, responsible energy conservation, and visualized on-site turn it o? promptly after use. Each gas-consuming department
management." These e?orts aim to reduce the company's consumption of resources and energy, improve the utilization rate should adjust the gas pressure range
and the requirements of the produc-
of resources and energy, minimize waste, lower costs, fully realize the scienti?c, rational, and e?ective use of resources and
tion process to the minimum pres-
energy, and enhance the company's modernized level of energy management.
Oil Usage sure, to reduce the ?ow rate and
save gas.
During the operation of various types of equipment, attention
According to the requirements of
Circular Economy should be paid to lubricating materials used (such as the lubricating oil for equipment and process, all gas-us-
air compressors) to avoid waste. The company’s shuttle buses are electric ing departments do not use nitrogen
vehicles, which helps reduce greenhouse gas emissions. gas if they can use air pressure gas,
Hubei Image, following the principles of recycling and reuse, as well as cost reduction and waste minimization, continuously When maintaining equipment and facilities, each department should pay and do not use high-purity nitrogen
carries out technological transformations and process optimizations. This includes the secondary reuse of stripped PET ?lm. attention to the amount of lubricant to avoid excessive application, and if they can use general nitrogen, so
The annual recycling and reuse of PET ?lm amounts to 81 tons, further e?ectively reducing the generation of solid waste. waste and leakage to the ground, polluting the environment. as to reduce the cost of gas source.
Resource Management and Energy Saving Measures
Office supplies
The company actively promotes o?ce automation and networking, Raw materials
tries to use electronic documents and electronic mailboxes in work, and advocates
Electricity Consumption revising manuscripts on electronic media to reduce paper consumption. The company purchases main raw
A designated person should be assigned to manage the daily o?ce supplies of and auxiliary materials according to
Lighting, O?ce Electricity each department, and the system for requisitioning o?ce supplies should be
the amount of usage and existing
strictly implemented; except for the con?dential information of the company, the
O?ce area: Use natural light as the main lighting, and turn on 2/3 (on cloudy days) or 1/3 (on sunny days) of the paper materials should be utilized on both sides. stock.
lighting during the day. Streamline documents. For matters that do not necessarily require issue o?cial The use of raw and auxiliary mate-
Corridors, locker rooms, restrooms: natural light is the main source of illumination during the day; turn on 1/2 of the documents for deployment, try to deploy them through meetings as much as rials should strictly adhere to the
lights on cloudy days when there is insu?cient light. possible. For matters that truly require the issuance of o?cial documents, the principle of “?rst in, ?rst out” to
Roads in the factory: keep lighting o? during the day, and keep lighting on at night. printing quantity should be accurately calculated to avoid reprinting and excessive prevent from ine?ective or deteri-
printing.
Each production workshop:keep lighting on according to the workforce and work part of the lights； in non-work orating.
Economically use cleaning and sanitation tools. Mops, rags, waste paper baskets
areas, only open a (or a row of) lights； during non-working hours, only part of the lights (a or a row) to ensure that should be properly stored to extend the service life.
the channel lighting to facilitate personnel’s movement .
O?ce appliances (such as: computers, printers, water dispensers, etc.) must follow:turn on only when needed, shut
In addition, the company implements lean production, supports agile management through informatization and digital tools.
down immediately after use; computer monitors are automatically sleep after 3 minutes of inactivity; computer moni-
The company continues to improve the turnover e?ciency of products and the utilization rate of the site, which promotes
tors are manually power o? when leaving workstations. unplug power cords at end of day.
quality improvement and reduces waste, e?ectively reduces production costs, and shortens the product development and
production cycle.
HGTECH COMPANY LIMITED / 2025 Environmental, Social and Governance ESG Report
Environmental Protection Measures
at Overseas Bases
Since its establishment, the Thailand base has strictly complied with relevant Thai laws and regulations, continuously
improving its environmental, occupational health and safety management system. It has formulated and implemented a
series of policy documents covering sustainable development and environmental protection, including but not limited to
multiple sustainable development management systems such as the "Management System for the Storage and Disposal of
Hazardous Waste," "Noise Control Management System," "Regulations on Designated Scrapping of Waste in the Industrial
Park," "Management System for Precursor (Highly Toxic) and Explosive Hazardous Chemicals," "Energy Saving and
Consumption Reduction Management System," "Safety Inspection Operating Procedures," and "Wastewater Discharge
Management Speci?cations." The base actively integrates legal and regulatory requirements into its daily operations,
continuously optimizes its own strategies, and promotes the achievement of sustainable development goals, making
positive contributions to the local society and environment. Simultaneously, the base actively implements environmental
protection and occupational health and safety management measures, continuously conducts wastewater, waste gas, and
noise testing, transfers hazardous waste in compliance with laws and regulations, and regularly organizes occupational
health check-ups, ensuring that the entire production and operation process meets environmental protection and safety
standards.
In 2025, the factory has obtained certi?cation for ISO 14001:2015, ISO 45001:2018, ISO 9001:2015, and ESD S20.20:2021
management systems. It has currently initiated work on ISO 14064 system certi?cation, ensuring that the management
system operates in a standardized and e?ective manner.Through strict implementation of relevant laws, regulations, and
systems, the factory achieved zero violations in pollutant emissions throughout the year, with no environmental incidents
or personnel casualties, demonstrating the company's outstanding achievements in environmental protection and safety
management.To build a "data-driven green factory," the Thailand base has deployed a factory online management system
that integrates intelligent temperature and humidity control, power consumption data monitoring, and safe refrigeration for
workshop glue freezers. This system represents a core pathway for the company to achieve a triple value leap in Environ-
ment (E), Society (S), and Governance (G). It is not merely an isolated functional module but an infrastructure for
constructing a "data-driven green factory," directly responding to international ESG rating standards and Chinese regula-
We, Our Employees,
tory requirements, thereby forming a quanti?able, auditable, and ?nanciable sustainable competitive advantage.
and Social Responsibility
ESG Implementation Technical Corresponding Environmental/Social/
Dimension Measures System Support International Standards Governance Value
Achieve real-time monitor- GRI 302-1 (Energy consumption)， Reduce annual energy consumption
Environment ing of the plant's energy Power Energy GRI 302-2 (Energy intensity), per unit of output value, decrease
(E) flow and energy efficiency Monitoring System CDP C8 (Operational efficiency Scope 2 carbon emissions (CO₂e),
optimization improvement) supporting the net-zero pathway.
Predictive maintenance of Employees can ?nd a platform for growth and development. The company
Environment Gas Automatic SASB MFG-EN-1a (Energy efficiency),
compressed air systems to
Control Retrofit GRI 305-3 (Greenhouse Reduce indirect emissions.
(E) reduce leakage and no-load provides a diverse and ?exible training system to assist employees in
System gas emissions)
energy consumption
continuously improving themselves and achieving their career goals. At the
Real-time leak monitoring
Environment and automatic linkage to Leak Detection and ?CDP Water Security Q4.2 (Leak control),
prevent water resource
Reduce resource waste. same time, we value the physical and mental health of our employees and
(E) Monitoring System GRI 306-1 (Water and effluents)
pollution and waste
strive to create a friendly and harmonious working environment, so that
Continuous monitoring of SASB MFG-EN-3
Environment particle concentration in Airborne Particle (Hazardous substance control), Reduce product scrap rate, employees can feel the company's care while working.
(E) c l e a n ro o m s t o e n s u re Counter System ISO 14644-1 (Cleanroom standards) minimizing resource waste.
pollution-free production
Glue freezer temperature control devia-
Precise temperature con- tion ≤ ±1 ° C, reducing annual VOC emis-
Power Distribution ?GRI 305-4(Emissions and releases),
Environment trol for power distribution sions by 0.9–1.3 tons, complying with
Cabinet Temperature Thailand Ministry of Industry cross-border application requirements of
cabinets and glue freezers
(E) Safety Detection Standard B.E. 2563 the "Measures for the Administration of
to reduce VOC emissions Corporate Environmental Information
System (VOCs management)
and electrical fire risks Disclosure in Accordance with the Law."
Build a unified data middle
Governance platform to achieve central- Automation System ?IFRS S2 (Climate-related
ized management of produc- Upgrade and financial disclosures), Support third-party ESG audits.
(G)
tion, energy consumption, Integration Platform SASB MFG-GV-1(Data governance)
and equipment data
Alarm response time reduced
Standardize hierarchical Automation System from 60 minutes to 20 minutes,
Governance alarm mechanisms and TCFD Governance
Upgrade and enhancing operational resilience
(G) emergency re sponse (Risk management structure)
Integration Platform and reducing the probability of
procedures environmental incidents.
Remote monitoring reduces Reduce the frequency of manual
Society the frequency of manual All six major SASB MFG-SO-1 inspections in high-risk areas by
(S) inspections and improves (Occupational health and safety) 50%, decreasing exposure risks
systems to high temperatures, high pres-
operational safety
sure, and chemicals.
HGTECH COMPANY LIMITED / 2025 Environmental, Social and Governance ESG Report 59
Employee Rights and Bene?ts
Additionally, the company organizes symposiums for di?erent employees:“Angel Interview” for new employees before
their regularization; “Falcon Symposium” for structural talents; “Youth Symposium” for school recruits;“Technical
Employee Employment and Basic Rights Symposium”for R&D personnel; “Engineering Master and Doctor Symposium”for engineering and technical experts;
“Expert Symposium” for technical experts.The company gain multi-dimensional understandings of employees’ evalu-
The company strictly complies with Labor Law of the People’s Republic of China, Labor Contract Law of the People’s ations of the company’s management as well as their suggestions. The company actively responds to the demands of
Republic of China, the Trade Union Law of the People’s Republic of China, and Personal Information Protection Law employees, strengthens the sense of belonging of employees, and improves their satisfaction.
of the People’s Republic of China, as well as relevant laws and regulations applicable in overseas areas. In combination
with the actual situation, the company has formulated a complete human resources management system and relevant
regulations.
Employee Bene?ts In accordance with relevant national laws and regulations, the company has formulated
management systems such as the Interim Provisions on Uni?ed Welfare Management to further
The company adheres to the principle of equal employment and opposes all forms of discriminatory behaviors resulted optimize the employee welfare system. Also the company provides employees with diverse
from di?erences such as gender, age, region, educational background, religious belief, nationality, race, and disability welfare guarantees including statutory bene?ts, health bene?ts, living bene?ts, consolation
status. The company devotes itself to striving to create a diverse and inclusive working environment. At the same time, bene?ts, and growth bene?ts.
the company has established a fair, just, and open mechanism for selecting and employing personnel. Use of child
labor, forced labor, overtime work, harassment, and abuse are de?nitely prohibited, and HGTECH ?rmly safeguards Consolation Bene?ts Statutory Bene?ts Growth Bene?ts
the legitimate rights and interests of employees. Condolences to employees in di?cult situations Statutory holidays Learning allowances
Condolences to retired employees Marriage leave Remuneration for in-house trainers
Condolences to sick employees Maternity leave and paternity leave Allowances for in-house trainers
During the reporting period, the labor contract signing rate was 100%, and the social insurance payment rate for Condolences for the death of employees' near kin, etc. Annual leave, etc. Evaluation for excellence and commendation
employees under the labor contract system was also 100%. There was no use of child labor or forced labor. For more
information on employee employment performance, please refer to “Key Performance Table - Table 5”. Health Bene?ts Living Bene?ts
Commuting shuttle buses
Annual physical examination
Canteen services and meal allowances
Supplementary commercial insurance
Telephone bill subsidies
Employees Rights & Management Methods Team-building activities and festival bene?ts, etc.
Recruitment: The company has formulated management systems such as the Interim Provisions on
Recruitment Management and the Management Measures for Implementing the Falcon Plan. Adhering
to the principles of "open recruitment, fair competition, scienti?c evaluation, and selection of the best
candidates", the company conducts recruitment activities, standardizes the employment procedures, Employee Care
protects employees’ privacy and information security. The company ?rmly prohibits employment of
child labor, and resists all forms of forced labor.
Recruitment Dismissal: The company conducts dismissal-related work with employees in accordance with local The Company adheres to the working philosophy of "Work happily, live healthily," and is
and Dismissal laws and regulations.
committed to creating a comfortable working atmosphere for its employees. It actively
carries out various employee care and appreciation activities to foster a warm and
harmonious workplace environment.
The Company consistently cares for the health and well-being of its employees and
their families, o?ering support to those facing ?nancial di?culties. During the reporting
Salary: The company adheres to equal pay for equal work, continuously optimizes the system
period, the Company provided a total of RMB 154,500 in assistance to employees in
management system, and provides employees with competitive salary. A precise incentive mechanism need. The Company continues to deepen and improve its measures for the employment
is set up according to di?erent job categories, enabling those value- contributors to have a greater and support of persons with disabilities. HGTECH Gaolin was recognized as a National
sense of ful?llment and fully stimulating employees’ potential. Base for the Proportional Employment of Persons with Disabilities. It has installed
Promotion: The company implements the principles of open, fair and just promotion management. accessible facilities for employees with disabilities in buildings such as canteens and
There are four basic principles in managers selection: o?ces, and organized a sign language lecture event on the 35th National Day of Assist-
·having both ability and integrity, and integrity taking precedence; ing Persons with Disabilities.
Salary and ·focusing on performance and conducting multi-position rotations;
Promotion ·competing for employee with open procedures, keep ?exible for both upward and downward mobility;
·giving more chances to young cadres with professional expertise.
Working Hours: The company has formulated management systems to ensure that working
hours in di?erent locations comply with local regulations. Di?erent shifts are set according to
production needs, and employees’ rights and interests are protected as stipulated.
Overtime: The company advocates "Happy Work, Healthy Life" and opposes all forms of
perfunctory overtime. There is an application for overtime work in advance if necessary. The
company aims to continuously improve work e?ciency by enhancing employees’ professional
qualities, optimizing processes, promoting informatization, and carrying out production automa-
Working Hours, tion transformations, enabling employees to strike a good balance between work and life.
Overtime, Vacation: In accordance with local laws and regional policies of the working locations, the
and Vacation company provides employees with paid annual leave, marriage leave, maternity leave for female
employees, nursing leave, etc.
HGTECH COMPANY LIMITED / 2025 Environmental, Social and Governance ESG Report 61
Employee Development and Training
Talent Echelon On June 28, 2022, General Secretary Xi Jinping emphasized that technological
innovation depends on investment and talent during his inspection to HGTECH. Academician Online Mobile Classroom for Salesman Executive Charging Workshop New Employee Training
Construction HGTECH has always holds the concept of “the future of enterprise lies in IPD Wolf Class Product Line General Manager Lean O?ce
innovation, the key to innovation lies in investment, and the focus of investment Training Camp
Technical Night Talk Industry Show Space Swap
Elite Class
is talent”. Based on the principle of “introducing and cultivating at the same time, and incentivizing and restraining Engineering Sales Toolkit Book Reading Club
Youth Class
synergistically”, HGTECH has set up an employee career development system, so as to manage e?ectively and create Laser First Classroom Hardening Program Xin Xin Xiangrong
a favorable environment for the growth of talents.
As a high-tech enterprise, HGTECH advocates that “To be a manager who understands technology, to be a techni-
cal expert who understands management”, and always insists on two promotion paths of management and profession.
The company prioritizes character, core competencies, and primary strengths in talent selection, embracing the
following principles: No perfectionism – Valuing growth potential over ?awless track records; Merit-based advance-
ment – Rejecting seniority- driven promotion systems; The company has consistently built the quali?cation system,
regularly gives evaluation of employees, which helps employees improve professionalism. In addition, the company
encourages cross-department rotations to develop multi-skilled talent.
HR New Employees
Reverse Mentoring Post-95 HR Strategy, AI-assisted Music Composition,
Employees Born After 1995 AI-assisted PPT, AI-assisted Marketing Tools,
The Development and Challenges of AI
Incremental Strategy & Performance, etc.
Sales Mobile Classroom
Youth Class Marketing Personnel
Young employees Company News Overview /
HR Strategy, AI-assisted Music Composition, Expert Sharing /
AI-assisted PPT, AI-assisted Marketing Tools, World Cafe /
Incremental Strategy & Performance, etc. Business Promotion Exchange
Bajie Program
(Jointing Program)
Skilled Personnel
Lean Lecture Hall /
Multi-dimensional The Company, guided by the principle of "maximizing individual potential and
creating value together," adheres to the development philosophy that "every-
Academician Online Digital Factory Implementation Path
Talent Cultivation System one has potential." It innovates talent cultivation methods by actively building a Technology & Management
three-tier training system comprising the "Young Seedling," "Elite," and "Executive Training" programs. The Company
promotes distinctive talent development initiatives such as the "Product Line General Manager Bootcamp," "Sales Mobile 3
"Design and Control Technology for
High-end Equipment Dynamics" /
"Beidou and New Quality Produc-
Professional Capability Building / Live Courses
Classroom," "Academician Online," the "Jointing Plan," and the "91 Talent Classroom." It explores the establishment of a Elite Class tivity", etc. New Employee Training
reverse mentorship program for employees born after 1995, strengthens the development of a younger management Middle Management Newly Hired Employees
team, continuously develops online training methods, and comprehensively promotes the OPE Micro-College. By Market-oriented / Company Pro?le and Corporate Culture
integrating online and o?ine training, the Company encourages employees to learn independently and empower them- client-centric /
selves, fostering a learning organization where everyone wants to learn, can learn anywhere, and can learn anytime. Intelligent Manufacturing Overview,
etc.
Simultaneously, leveraging the construction of the Central Research Institute, the cultivation of outstanding engineers,
and the training of master's and doctoral engineering students, it forms a tripartite collaboration model involving govern-
ment, universities, and enterprises.
Executive Charging Station 2025
AI Training
All Employees
Senior Management Training
Projects
Company Executive Empowerment /
New Trends and Business Transformation in Arti?cial Product Line Experience Sharing /
Average Training Hours Intelligence from the Perspective of DeepSeek Industry Expert Lecture "Organiza-
Offline Training Training Attendances Per Person Micro Classes Created The Second Half of Large Models - Inspirations and tional Management Psychology" /
partially
"Exploring Quality Value, Creating
Re?ections from DeepSeek
Innovation Management Enhancement for Enterprises in New Quality Competitiveness"
the AIGC Era
Sessions Person hour Class
AI Programming Assisting Software Development
HGTECH COMPANY LIMITED / 2025 Environmental, Social and Governance ESG Report 63
Main Incentive Measures
Employee Promotion and Incentives
The company advocates “let value contributors have more sense of achievements, let value contributors stand in the
center of the stage”, establish the precise incentive management system, make smaller accounting unit, designs more
attractive material incentive and spiritual incentives, such as annual salary assessment for managers, ?ve ?rewalls for
management personnel, regularly conduct performance assessment openly and fairly every year, constantly update the
method of selecting and appointing managers, integrate the performance appraisal into job promotion, which e?ec-
tively identi?es outstanding talents, and realizes precise incentives. At the same time, according to employees’ willing
and needs career development, the company improves the quali?cation system, internal transfer, internal competition,
exchange of space and other mechanisms. Besides, the company gives full play to the leading role of independent
evaluation, as to accelerate the growth of employees.
Occupational Health and Safety
Company Performance Management Model
Work Safety In terms of work safety, the company strictly implements relevant laws and
regulations such as the Work Safety Law and the Fire Protection Law,
adhering to the safety policy of "Safety First, Prevention Focused, Com-
prehensive Management". Guided by the principles of "full coverage, zero
tolerance, and practical results", the company reinforces the primary
responsibility for work safety at all levels and clearly de?nes the division of
duties. It has established and released management systems including the
Accident Management System, Ten Safety Prohibitions, Work Safety
Education and Training, and Management of Labor Protection Supplies to
standardize work safety management processes. The company consis-
tently prioritizes the development of employees' safety competencies,
building a robust safety culture system. It conducts regular safety training
for all employees, organizes annual "Work Safety Reinforcement Month"
activities, and continuously monitors the e?ectiveness of safety training to
enhance employees' safety awareness and competence. This fosters a
safety culture characterized by full participation and shared responsibility.
HGTECH COMPANY LIMITED / 2025 Environmental, Social and Governance ESG Report 65
Emergency Response
Fulfilling Social Responsibility
In order to strengthen the ability to respond to emergencies, the company has formulated the Emergency Dispos-
Under the guidance of Hubei Province's "Rise of Central China" strategy, HGTECH fully leverages its role as a leading
al Plan for Safety Emergency. HGTECH carries out ?re?ghting drills and special emergency drills for key
enterprise to drive industrial development. Guided by application scenarios, the company strengthens forward-look-
processes, by simulating safety accidents, rehearsing disposal and rescue actions. To strengthen our safety ing systematic industrial deployment, increases investment in innovation, and promotes the cross-industry and
production team, we have organized all kinds of training related to safety production, such as mechanical injury cross-regional integration of innovation resources. It fosters innovative collaboration within the industrial and supply
prevention training, ?rst aid training, ?re safety training and drills, tra?c safety training, forklift use safety train- chains, driving the development of industrial clusters by extending, supplementing, and strengthening the chains. This
ing, etc. Besides our daily safety work:monthly inspection, annual replacement of ?re?ghting equipment,annual has continuously stimulated the growth of the local electronic and advanced equipment manufacturing industries,
inspection of gas body detectors, various types of special equipment on schedule, “Special Equipment Safety establishing HGTECH as a model for the radiating in?uence of Wuhan's high-tech industry on surrounding area，
Management System”, “Temporary Electricity Operation Management System”, “Management System of Oper- thereby injecting strong momentum into the coordinated development of the regional economy.
ations at Height”, “Management System of Fire Operation”, etc. HGTECH still have completed: re-?ling of the
The company has invested over RMB 300 million to build the HGTECH Opto electronic Information Industry R&D and
emergency plan for work safety accidents, strengthen limited space management, make a numbered record on
Innovation Park in Optics Valley, adding new momentum to the development of a world-class optoelectronic infor-
all limited space, clarify safety management requirements, post warnings in public.
mation industry cluster inOptics Valley.Leveraging its intelligent terminal manufacturing base and sensor manufac-
turing base in Xiaogan, as well as its anti-counterfeiting packaging industry base in Jingmen, the company actively
creates job opportunities for impoverished residents in surrounding areas and continues to develop positions suitable
for persons with disabilities. It was among the ?rst to join the Xiaogan City Caring Enterprise Alliance for Employment
and Entrepreneurship of Persons with Disabilities, carrying out initiatives to support persons with disabilities in
various aspects, thereby helping to foster a positive social atmosphere of caring for and assisting persons with
disabilities across the whole society.
In addition, as a major taxpayer, HGTECH pays taxes in full and on time, providing stable tax support for the local
economy. The company has been honored as one of the "Top Ten Taxpayers" in the East Lake High-tech Zone for
many consecutive years. In recent years, HGTECH has deeply explored high-end markets in emerging ?elds, contin-
uously increased R&D investment, and built a hub for attracting high-quality talent. Within the new development
paradigm featuring dual circulation, where domestic and international markets reinforce each other, the company
forges long boards, addresses short boards, and forges new boards, fostering more new technologies, new products,
and new directions. This injects strong momentum into the sustained growth of the regional economy.
HGTECH actively responds to the national call for the integration of industry and education, maintaining close ties
with multiple universities to provide students with practical learning opportunities during winter and summer vaca-
tions. Students delve into the front lines of the enterprise, actively putting into practice the earnest exhortations of
General SecretaryXi the contemporary youth.
Occupational Health
National Sports
To e?ectively prevent, control, and eliminate occupational hazards and protect the health and related rights of
employees, the company has established systems such as the Occupational Health Management System and
Occupational Health Examination in accordance with the relevant provisions of the Law on the Prevention and In November 2025, HGTECH 2025 Optics Valley Marathon kicked o? with great enthusiasm! A total of 13,000
Control of Occupational Diseases. Through measures including system standardization, training and education, runners gathered in Optics Valley to experience the dynamic blend of technology and culture, and feel the innova-
and occupational health promotion, the company continuously strengthens the management and monitoring of tion and entrepreneurship vitality of the "World Optics Valley".As the title sponsor of the 2025 Optics Valley Mara-
occupational hazard prevention. The main occupational disease risks involved in the company primarily include thon, HGTECH delivered professional, thoughtful and meticulous event services through elaborate planning and
noise, dust, chemical substances, and laser radiation. careful arrangement, striving to provide an outstanding experience for all participants.
In daily operations, the company provides employees with personal protective equipment (such as earplugs, On November 9, the ?nal match of the Wuhan City Football Super League (Urban Group) was held at Wuhan Sports
earmu?s, dust-proof masks, and anti-toxic masks), installs protective facilities such as dust removal, ventilation, Center.The East Lake High-Tech Development Zone team, sponsored by HGTECH, claimed the championship of
and sound insulation walls, and urges employees to collect and wear daily labor protection supplies to ensure the inaugural Urban Group with an outstanding record of 8 wins in 8 matches.
their health and safety during work.
In addition, in strict compliance with national occupational health standards such as the Technical Speci?cations
for Occupational Health Surveillance, the company entrusts quali?ed third-party medical institutions to conduct
occupational health examinations for employees in positions exposed to occupational hazards. Health records
are established and monitored, and employees are promptly informed of their occupational health examination
results.
HGTECH has obtained the Occupational Health and Safety Management System Certi?cation Certi?cate. The
company has experienced no incidents a?ecting social or internal safety and stability, no ?re safety accidents,
no explosion incidents, no major or serious public security cases, and no unrest incidents seriously endangering
society. It has successfully completed its annual work safety objectives.
HGTECH COMPANY LIMITED / 2025 Environmental, Social and Governance ESG Report 67
Public Welfare Science Education and Awareness Promotion Key Performance Indicator Table
As the ?rst science and technology exhibition hall in China dedicated
to laser science education, laser process applications, and intelligent Table 1: Economic Performance
manufacturing, the HGTECH Laser Science Museum aims to "popu-
larize laser science knowledge and promote the application of laser Index Unit 2023 2024 2025
technology." It is committed to providing the public with diverse and
enriching science education, training, and practical activities.
Total Assets Ten thousand yuan 1,751,509.12 2,082,432.87 2,291,885.39
Since its completion in June 2020 and its o?cial opening to the Operating Revenue Ten thousand yuan 1,030,973.30 1,170,917.55 1,435,476.05
public in early 2021, the Laser Science and Technology Museum has Belonging to Shareholders of
been conducting educational activities such as the "National Science the ParentCompany Net profit Ten thousand yuan 100,747.60 122,074.99 147,079.47
Tour" and "Public Open Days" for audiences nationwide. Visitors can
Basic Earnings per share Yuan per share 1 1.21 1.47
gain an in-depth understanding of the development history, applica-
tion ?elds, and future trends of laser technology through various
interactive methods, including interactive exhibits, guided explana-
tions and demonstrations, and hands-on practice.
Table 2: Environmental Performance
In 2025, the HGTECH Laser Science and Technology Museum
hosted approximately 1,152 visits, welcoming around 20,000 visitors, Index Unit 2025
including industry users, the general public, and students. It also
provided science education services for 229 groups, including
domestic primary and secondary school student groups and students Energy usage management
from key universities, o?ering the public an engaging and informative
Total electricity consumption linear measure 133638986.14
scienti?c experience.
Total natural gas consumption cubic meter 508507
Water resource utilization management
Total water consumption cubic meter 971042
Packaging usage management
Public Welfare Practices and Rural Revitalization
Total amount of packaging materials ton 3500.32
Recyclable packaging usage ratio % 27%
HGTECH actively ful?lls its social responsibilities by focusing on
coordinated regional industrial development, science education, and Pollutant discharge management
public welfare initiatives. The company consistently integrates social
responsibility into its production, operations, and management, Total greenhouse gas emissions ton 54465.57
giving back to society through concrete actions.
Total amount of domestic sewage discharge ton 626922.5
Volunteer service re?ects the original aspiration, while solid action
tempers youth. To enrich extracurricular reading resources for rural Waste management
students and broaden their intellectual horizons, the company's
"Young Seedling Program" continues to deepen its public welfare The amount of hazardous waste disposa ton 297.32
e?orts. In the third phase of the "Fresh & Stale Fish" Innovation
The amount of general industrial solid waste ton 4108.35
Practice Project, the program mobilized young employees by orga-
nizing two "Whisper" talk shows, which generated over RMB 150,000 Total amount of household waste ton 1918.9
in total revenue. All proceeds were donated to the Wuhan Youth
Development Foundation to support the construction of a Hope Environmental protection
Project library at Dougangang Central Primary School in Xiaonan
Annual environmental investment expenditure Ten thousand yuan 1066.54
District, Xiaogan City. To date, the HGTECH Young Seedling
Program has funded the establishment of four Hope Project libraries. Number of incidents punished for violating piece 0
environmentalprotection laws and regulations
Table 2 Covers First-Tier Subsidiaries and Select Second-Tier Subsidiaries of HGTECH.
Table 3: Supply Chain Management Performance Table 6: Employee management performance
Index Unit 2025 Index Unit 2025
Proportion of employees with a
Total number of suppliers / 2514 By master’s degree or above % 15.9
Educational
Number of supplier training sessions / 135 Background Proportion of employees with a
% 40
bachelor’s degree
Passing rate of supplier qualification review % 93%
Proportion of female employees in management % 25
Proportion of male employees in the management team % 75
Table 4: Product R&D and Innovation Performance
Proportion of employees under the age of 30 in the management team % 7.9
Index Unit 2023 2024 2025 Proportion of employees aged 30 to 50 in the management team % 87
Product R&D investment Ten thousand yuan 80,232 99,270 109,156 Proportion of employees aged 50 and above in the management team % 5
R&D investment growth rate % 31.86% 23.73% 9.96% Employee Rights Management
R&D investment as a percentage of revenue % 7.78% 8.48% 7.56% 100
Coverage rate of employee labor contracts %
Total number of R&D personnel personnel 2176 2483 2698
Social security coverage rate % 100
Number of patent applications / 324 421 433
Expenditure amount for supporting financially distressed employees Ten thousand yuan 15.45
Number of authorized patents / 239 232 244
Employee Health and Safety
Health check-up coverage rate % 100
Table 5: Employee Management Performance
The Amount of safety accidents and environmental pollution incidents 次 0
Index Unit 2025 100
Employee safety training coverage rate %
Total number of employee person 9462 100
Coverage rate of supplier employee safety training %
Proportion of male employees % 63.4
By Gender Employee training management
Proportion of female employees % 36.6
Employee training coverage rate % 100
Total number of production personnel person 4740
Average training hours for employees hour 15.5
Total number of Sales staff person 1051
By
Personnel Total number of financial staff person Proportion of senior administrators % 100
Type
Total number of technician person 2698 Proportion of intermediate administrators % 100
Total number of administrative personnel person 845 Proportion of ordinary employees 100
%
Proportion of Under 30 years old employees % 28.3
By Age Proportion of 30 to 50 years old employees % 69.1
Proportion of Over 50 years old employees % 2.6
HGTECH COMPANY LIMITED / 2025 Environmental, Social and Governance ESG Report 71
Benchmarking Index Table
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Content of Norm Corresponding chapters
Tel: 027-87180126
Fax: 027-87180139
East Lake High-Tech Development Zone, Wuhan City, Hubei Province
Contact Person: O?ce of the Board of Directors in HGTECH
and industry standards Environmental management system
Environmental Protection Policies Environmental management system
Enhancing Product Quality through
Accident Emergency Plan Emergency response
Handling Violations Employee Rights and Bene?ts
Safety Measures Occupational Health and Safety
INNOVATION DRIVES A BETTER WORLD
Contact Information
Office of the Board of Directors in HGTECH
Tel: 027-87180126
Fax: 027-87180139
Email: 0988@hgtech.com.cn
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