Contents
d ancing reen
De elo ment and ilding
a Lo -Car on t re
for Climate Change Response
Enhancing o ernance
arnessing Di erse
E ecti eness and
Sta eholders to Co-create
Strengthening the
and Share al e
o ndation or S staina ilit
Technological Innovation Engagement
a Sustainable Ecosystem Sustainable Business
People-Centric Workplace
Contributing to Community Development
o t the e ort
This report is the fifth ESG (Environmental, Social and Corporate Governance) report issued by Zhongji InnoLight Co., Ltd. for all
stakeholders. The report discloses in detail the Company's practices and performance in the areas of economic, environmental,
social and corporate governance in 2025, with the aim of facilitating effective communication with all stakeholders by systematically
responding to their expectations and requirements.
Reporting Period
The reporting period of this report spans from 1 January 2025 to 31 December 2025. To enhance the comparability and forward-looking
relevance of the report, certain disclosures have been appropriately extended to cover periods before and after the reporting year.
Reporting Scope
The report discloses information on the responsibilities of Zhongji InnoLight and its subsidiaries in the areas of economy,
environment, society, and corporate governance, with relevant exemplary cases drawn from the respective companies.
Information Source
The information disclosed herein comes from our internal official documents, statistical reports and annual reports, and the data
disclosed herein comes from our original data, government published data, annual financial data, internal statistical statements,
third-party questionnaires, third-party assessments, interviews, etc. The financial data contained herein are denominated in RMB.
Abbreviations
ll name re iation
Zhongji InnoLight Co., Ltd. "Zhongji InnoLight", the "Company" or "we/us"
InnoLight Technology (Suzhou) Ltd. "InnoLight Suzhou"
InnoLight Technology (Tongling) Ltd. "InnoLight Tongling"
InnoLight Technology Pte. Limited Taiwan Branch "InnoLight Taiwan"
TeraHop (Thailand) Co., Ltd. "TeraHop Thailand"
Chongqing Jingle Electronic Technology Co., Ltd. "Jingle Electronic"
Chengdu Tsuhan Technology Co., Ltd "Chengdu Tsuhan", "Tsuhan Technology"
Pioseed Technology（Chengdu）Co., Ltd "Pioseed Technology"
TeraHop Pte. Ltd. "TeraHop Pte"
TeraHop US, Inc. "TeraHop US"
Basis of Preparation
UN Sustainable Development Goals (SDGs)
Global Sustainability Standards Board (GSSB), Global Reporting Initiative Standards (GRI Standards)
Guide for the Preparation of Corporate Social Responsibility Report in China (CASS-ESG 6.0)
National Standards, Guidance on social responsibility reporting (GB/T 36001-2015)
ISO 26000: Guidance on Social Responsibility (2010) issued by the International Organization for Standardization
Self-Regulatory Guidelines No.17 for Companies Listed on Shenzhen Stock Exchange-Sustainability Report (For Trial Implementation)
Self-Regulatory Guidelines No.3 for Companies Listed on Shenzhen Stock Exchange-Preparation of Sustainability Report (2026
Revision)
Self-Regulatory Guidelines No.3 for ChiNext Companies Listed on Shenzhen Stock Exchange-Preparation of Sustainability Report
(2026 Revision)
Access to the Report
This report is available in electronic form. You may visit our official website at https://www.zj-innolight.com/en to view this report. If
you have any questions or suggestions about this report, please contact us at info@zj-Innolight.com or +86 0535-8573361.
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
essage rom the Chairman
Looking back on 2025, as a new wave of global
technological revolution and industrial transformation
accelerates, artificial intelligence has entered a
stage of rapid development. The explosive growth
in computing power demand is reshaping the global
information infrastructure landscape. The deep
integration of computing power foundations with
high-speed optical interconnection technology has
made high-speed, low-power, and highly integrated
optical communication solutions a crucial basis for
supporting next-generation computing networks.
Against this backdrop, Zhong ji InnoLight has
consistently adhered to long-termism and prudent
operations, rooted in technological innovation and
guided by global development. While continuously
enhancing core competitiveness and creating
e co n o m i c va l u e , t h e C o m p a n y a l s o a c t i v e l y
integrates Environmental, Social, and Governance
(ESG) principles into management, operations,
and decision-making, promoting high-quality and
sustainable corporate development.
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
We uphold the development philosophy of "green innovation, environmental responsibility first," fulfilling our
environmental responsibilities with a strong sense of duty and mission. We are committed to protecting the ecological
environment and building a greener planet. We actively respond to the global climate governance goals established by
the Paris Agreement and implement the national "dual carbon" strategy, continuously improve our climate governance
system, identify climate-related risks and opportunities, develop and implement carbon reduction action plans, and embed
emission reduction requirements throughout the product lifecycle. During the reporting period, we further strengthened
emergency environmental management and pollution prevention, strictly controlled chemical safety, and continuously
reduced environmental risks. At the same time, we promoted efficient resource utilization and optimized energy structure,
steadily raised the share of clean energy, and prioritized biodiversity conservation—translating our commitment into
tangible actions that accelerate the green transition and advance sustainable development.
Social responsibility is both a corporate obligation and a driver of growth. We remain committed to technological innovation,
making forward-looking investments in key R&D initiatives to accelerate iteration and build long-term competitive
strength; we deepen partnerships, strengthen supply chain management, and enhance overall resilience; we value talent
development and succession planning, and actively participate in social welfare and charitable activities, giving back to
society through concrete actions.
Sound corporate governance is the fundamental safeguard for stable operations and sustainable development. During
the reporting period, the Company's production capacity continued to expand, revenue and profits grew, and market
capitalization rose steadily—demonstrating the effectiveness of its governance structure and long-term strategy. We
continuously improve our ESG governance system, promoting more robust, transparent, and responsible management to
enhance trust among clients, partners, and the capital market; at the same time, we adhere to trade compliance, resolutely
oppose unethical business practices, fortifying the Company's risk and safety defense lines.
The times present Zhongji InnoLight with opportunities for innovation while also setting higher expectations. Looking ahead,
the Company will continue to uphold the values of "Innovation, Speed, Discipline, Teamwork" and follow the "LIGHT—L
(Long term), I (Intelligence), G (Green), H (Health), T (Talent)" principles, approaching opportunities and challenges with a
broader vision, more robust governance, and resolute actions. While achieving our own growth, the Company will continue
to deepen ESG management practices, creating long-term value for the industry and society.
On behalf of the Board of Directors, I would like to express sincere gratitude to all shareholders, clients, partners, and
employees for your continued care and support of Zhongji InnoLight's development. I look forward to working hand in hand
with all stakeholders to create a better and more sustainable future.
Chairman and President o Zhongji InnoLight
LI Sheng
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
o t Zhongji InnoLight
Company Profile
Zhongji InnoLight (SZ: 300308) is a leading high-speed optical interconnection solution provider, focusing on innovation in advanced
optical modules and optical communication technologies to support global cloud computing and AI computing infrastructure. The
Company holds a leading position in the high-speed optical module sector and plays a key role in advancing next-generation computing
networks and upgrading digital infrastructure. Through continuous technological innovation, superior product performance, and
reliable large-scale delivery capabilities, Zhongji InnoLight has established a solid market position and a strong brand reputation within
the industry.
The Company adheres to technological innovation as the core driving force, continuously strengthening R&D investment and industry
chain collaboration, while actively expanding the application boundaries of optoelectronic technology and exploring the field of
intelligent in-vehicle systems, striving to create greater value for more clients.
As a responsible enterprise, we actively fulfill our social responsibilities, focusing on environmental protection and social contributions,
and promote high-quality, sustainable corporate development.
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Corporate Culture
ision ission
Innovate Optoelectronic Technologies,
Innovation Lights Our Future
Embrace the Intelligence Era
Cor orate al es
Inno ation: Driving success with technological innovation, and improving efficiency with process innovation; taking an open-
minded and collaborative approach to ensure efficient implementation
S eed: Getting personally involved in problem-solving from the customer's perspective; taking action with a focus on priorities
Disci line: Aligning information and respecting facts; focusing on details with excellent quality
Team or : Being honest, sincere, and ready to face challenges; supporting and trusting each other to achieve mutual success
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Milestones
Launched industry's first
Launched 100G QSFP28 LR4-Lite/
Zhongji Electric Machinery was data center networks to higher
ER4-Lite/CWDM4/AOC breakout
restructured into Shandong rates.
products, becoming the first
Zhongji Electrical Equipment company in the industry to have
Co., Ltd. the most complete 100G series
products, facilitating the era of
The predecessor of the
Company, Longkou Zhongji
Electrical Machinery Co., Ltd.,
was founded.
InnoLight Technology (Suzhou)
Ltd. was established in the
Shandong Zhongji Electrical DR4 and 200G Coherent CFP
Suzhou Industrial Park.
Equipment Co., Ltd and DCO products, demonstrating
InnoLight Suzhou completed a strong design and manufacturing
First to launch a full range of 40G which our stock short name was modules and coherent optical
QSFP+ products, establishing changed to Zhongji InnoLight communications area.
a technological leadership in and the stock code was 300308. Our wholly-owned subsidiary
the field of high-speed optical InnoLight Tongling went into
modules. operation, further increasing the
Shandong Zhongji Electrical Company's production capacity.
Equipment Co., Ltd. was listed
on the ChiNext Board of the
Shenzhen Stock Exchange.
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
DR8 optical module, driving optical
Launched 100G QSFP-DD, 400G
QSFP-DD ZR/OpenZR+ and 400G LH
Launched a 1.6T OSFP-XD DR8+ 1.6T Era.
CFP2 DCO coherent optical module
products to meet the needs of data pluggable optical module to First to launch 800G OSFP/CFP2
center interconnection and long- capture the future heights of coherent optical modules, further
haul transmission. hyperscale data centers. enhancing the diversity of high-
bandwidth coherent optical
We completed a private placement,
solutions.
the RMB 2.699 billion of offering
proceeds from which were mainly
used to build the production
capacity for 800G, 400G, 200G, and
other high-end optical module
products and the construction of an
optoelectronic industrial park and
R&D center.
Our Thailand manufacturing base was completed and put into
operation. 2025
First to launch 800G OSFP 2xFR4 and QSFP-DD800 DR8+ silicon Industry-leading 400G per lane technology demo with
optical modules, leading the industry into the 800G Era. advanced DSP IC supporting 400G-PAM4.
Launched 100G QSFP-DD series optical modules for 5G Industry-leading 1.6T-2xLR4 with TFLN MZM technology
backhaul and aggregation network upgrade. to support large scale AI data center campus networking
Realized mass production of all series of 400G coherent applications.
optical modules and launched new fixed wavelength Industry-leading 800G-LR2 OSFP coherent lite optical
deployment in coherent optical communications area. cluster scale out across multiple data center buildings.
Our headquarter settled in InnoLight Technology
Optoelectronics Park, starting our platform-driven
development.
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Annual Honors
In 2025, Zhongji InnoLight and the subsidiaries continued to strengthen ESG management and deepen ESG practices, achieving outstanding
results and receiving recognition from multiple organizations.
May 2025 June 2025
Best Practice Cases of Investor Relations Management of The 16th Tianma Award for Investor Relations
Chinese Listed Companies Management of Chinese Listed Companies
–––––– China Association for Public Companies (CAPCO) ––––––Securities Times
July 2025 July 2025
TeraHop Thailand Awarded RBA Silver Rating Wind ESG Rating: A
–––––– Responsible Business Alliance (RBA) –––––– Wind
October 2025
October 2025 Top 100 Job-Creating Private Enterprises in the Province,
Pioneer Enterprise –––––– Anhui Provincial Department of Human
–––––– Cailian Press Resources and Social Security, Development and Reform
Commission, Market Supervision Administration, and
Federation of Industry and Commerce
November 2025
November 2025 The winner of the Top 10 competitiveness
enterprises in the optical components field of Global
Golden Dawn Award for Market Value Management
market in 2025 (19th)
––––––Securities Market Weekly
–––––– Asian-Pacific Optical Communications Committee,
Network Telecom Information Research Institute
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
November 2025
The winner of the Top 10 competitiveness enterprises in
the optical components and auxiliary equipment field of
China in 2025 (19th)
–––––– Asian-Pacific Optical Communications Committee,
Network Telecom Information Research Institute
December 2025
The 27th Listed Companies Golden Bull Award "Golden
Information Disclosure Award"
–––––– China Securities Journal
December 2025
TeraHop Thailand Awarded the 2025 Excellent
Practices Establishment on Labour Relations and
Welfare National Level
–––––– Ministry of Labour, Thailand
December 2025
Excellence Leadership
–––––– Nowcoder.com
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
es onding to SD s
We support the United Nations 2030 Agenda for Sustainable Development and have developed an in-depth understanding of the core
principles and specific targets of the UN Sustainable Development Goals (UN SDGs). We actively contribute to the achievement of these
goals through our own operations and initiatives.
Corresponding Chapter: Harnessing Diverse Stakeholders to Co-create and Share Value
We place strong emphasis on employee health and safety management and provide a safe and comfortable
working environment. We regularly conduct workplace safety and environmental protection activities to
strengthen employees’health and safety awareness. We attach great importance to employees' physical well-
being and occupational disease prevention, and continuously enhance our emergency management framework.
Corresponding Chapter: Harnessing Diverse Stakeholders to Co-create and Share Value
We prioritize talent development by integrating internal and external training resources,
formulating annual training plans, and strengthening our workforce's core competencies.
Corresponding Chapter: Harnessing Diverse Stakeholders to Co-create
and Share Value
We respect and safeguard the rights and interests of female employees. We
strictly prohibit any discriminatory or biased language, behavior or decision-
making in the recruitment process. Female employees accounted for 48.19%
of our workforce.
Corres onding Cha ter: d ancing reen De elo ment and
ilding a Lo -Car on t re
We have established as a long-term water stewardship objective the
provision of 100% adequately functioning, safely managed, and high-
quality water, sanitation and hygiene services for all employees.
We regularly assess and monitor the impacts of our water use on
employee health, as well as on local ecosystems and habitats within the
communities in which we operate.
Corresponding Chapter: Advancing Green Development and Building a
Low-Carbon Future
We continuously advance the substitution of conventional energy with
renewable energy and increase the share of renewable energy in our energy
mix through measures such as the procurement of green electricity and the
development of on-site photovoltaic systems.
Corresponding Chapter: Harnessing Diverse Stakeholders to Co-create and Share Value
We provide employees with market-competitive remuneration and have implemented
a long-term equity incentive scheme alongside a comprehensive benefits system. Our
well-established performance appraisal system evaluates employee performance in a
comprehensive, fair and effective manner.
Corresponding Chapter: Harnessing Diverse Stakeholders to Co-create and Share Value
We attach great importance to innovation and R&D, positioning technological innovation as a key priority within our
corporate strategy and governance framework. By optimizing our governance structure, increasing R&D investment,
strengthening intellectual property protection mechanisms, and advancing digitalization and intelligent transformation, we
continuously enhance our technology iteration and commercialization capabilities.
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Corresponding Chapter: Harnessing Diverse Stakeholders to Co-create and Share Value
We closely monitors social issues such as equitable access to education between urban and rural areas and actively engages
in a range of public welfare and charitable initiatives. The Company upholds the principles of equality and inclusion, fostering
a diverse, inclusive, and harmonious workplace environment, and firmly opposes any form of discrimination.
Corresponding Chapter: Advancing Green Development and Building a Low-Carbon Future
We actively explore approaches to resource conservation and materials recycling, and have
established a robust waste recycling and recovery system to promote shared value across
resources and the environment, the Company and society, and economic growth and
sustainable development. We exercise stringent control over chemical safety management
and implement rigorous, standardized controls across the full chemical lifecycle, including
introduction, procurement, storage, transportation, use and disposal.
Corresponding Chapter: Advancing Green Development and Building a Low-
Carbon Future
We actively respond to China's "dual carbon" goals by establishing a Climate Change
and Pollution & Carbon Reduction Committee to strengthen greenhouse gas (GHG)
emissions management and continuously enhance our green practices.
Corresponding Chapter: Advancing Green Development and Building a
Low-Carbon Future
We strictly observe ecological protection red lines and strengthen
environmental management and control over ecologically sensitive
areas, including Yangcheng Lake, Jinji Lake and Dushu Lake.
Corresponding Chapter: Advancing Green Development and Building a
Low-Carbon Future
We pay close attention to vegetation protection in areas surrounding our
operational sites and organize activities such as tree planting and public litter
clean-up campaigns to safeguard local vegetation.
Corresponding Chapter: Enhancing Governance Effectiveness and
Strengthening the Foundation for Sustainability
We continuously improve our governance structure and institutional framework
to safeguard strategic execution and sound operations, while providing sustained
organizational enablement.
We strengthen our internal control system and rigorously comply with applicable laws
and regulations. We uphold high standards of business ethics and foster a clean and
integrity-driven corporate environment.
Corresponding Chapter: Harnessing Diverse Stakeholders to Co-create and Share Value
We actively adhere to industry standards, participate in industry collaboration, promote peer communication and exchange,
and maintain strong partnerships across the value chain to support the sustainable development of the industry.
We have established honest, transparent, and mutually trusting relationships with our suppliers, building a responsible
supply chain and promoting win-win cooperation across the entire value chain.
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
d ancing reen
De elo ment and ilding a
Lo -Car on t re
Zhongji InnoLight strictly complies with the laws and regulations of the jurisdictions in which we operate and advances our strategy
of prioritizing carbon emissions reduction, driving coordinated pollution and carbon reduction, and enabling green transformation.
Through the implementation of green manufacturing and green operations, we continuously improve energy efficiency, expand the
use of green energy, reduce our carbon footprint, and proactively address climate change. We continuously strengthen environmental
management by reducing emissions of waste, wastewater, exhaust gas and noise, enforcing stringent chemical safety controls, and
enhancing pollution prevention and control. We also advance ecosystem protection, improve resource utilization efficiency, promote
the development of a circular economy, and work toward building a green and low-carbon enterprise.
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Green Transition and Carbon Reduction Pollution Prevention and Ecosystem Resource Efficiency and Circular
for Climate Change Response Protection Economy Development
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
reen Transition and Car on ed ction or
Climate Change es onse
Governance
Zhongji InnoLight actively responds to the global climate governance goals established under the Paris Agreement and implements
China's strategic targets of achieving carbon peaking by 2030 and carbon neutrality by 2060. The Company actively advances climate
change mitigation and low-carbon transition. To this end, Zhongji InnoLight continues to strengthen the Board's governance capacity
in addressing climate change and has established a robust governance structure to provide institutional support for advancing climate-
related initiatives. We established a company-level Climate Change and Pollution & Carbon Reduction Committee, formally integrating
climate change considerations into our decision-making processes. Dedicated functions have been formed to identify and assess
climate-related risks, and to develop targets and action plans to address related impacts.
Climate Change Governance Framework
Board of Directors Strategic Committee Climate Change Working Group
(Decision-Making) (Management) (Execution)
Regularly receives reports from the A specialized working body under Composed of leaders from various
Strategic Committee on climate the Board of Directors (Climate function departments.
change, provides guidance, and Change and Pollution & Carbon
Monitors, collects, and analyzes
oversees the Company's carbon Committee) that assists the Board
relevant data and information,
reduction strategy, setting carbon in formulating or revising climate
and regularly reports ESG progress
peak and carbon neutrality targets. change - related policies.
to the Strategic and Sustainable
Reviews and decides on climate Committee.
change - related matters and
Implements ESG arrangements
formulates carbon reduction action
assigned by the Strategic and
plans.
Sustainable Committee and
coordinates improvements in
climate change response efforts.
Strategy
Zhongji InnoLight systematically identifies and assesses climate-related physical and transition risks, integrating them into the overall
risk management framework. The Company has established and continuously improves a Business Continuity Plan (BCP) management
system, conducting systematic Risk Assessments (RA) and Business Impact Analyses (BIA) to comprehensively identify the potential
impacts of extreme weather events, supply chain disruptions, and equipment failures on operations and financial performance. Based
on these assessments, the Company has developed a tiered response mechanism and post-disaster recovery strategies covering key
areas such as production, IT systems, critical equipment, supply chain, and personnel protection. Through regular training, testing, and
drills, we continuously enhance our emergency response and recovery capabilities to effectively address the long-term uncertainties
posed by global warming.
We review and update the relevant assessments and plans at least once a year to ensure the Company maintains operational continuity
and business resilience amid climate change and a complex external environment.
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Risk Type Risk Description Risk Mitigation Strategy Impact Level Period
Damage to equipment and Strengthen climate risk monitoring and
production disruptions early warning systems, obtain timely
Medium Short-term
Acute Physical Risk caused by natural disasters meteorological information, and prepare
Ph sical is
and extreme weather. appropriate response measures.
Threats to coastal equipment
Strictly implement the Company's
and facilities from rising
emission reduction targets and
sea levels; climate warming
Chronic Physical Risk encourage suppliers and clients Medium Long-term
may cause equipment
to jointly promote sustainable
overheating, affecting normal
development.
operation and lifespan.
The Company must
Increase investment of time and
comply with domestic and
resources in ESG and climate change
Policy and international ESG standards,
initiatives, enhance management's High Medium-term
Regulatory Risk (including climate change)
ESG capabilities, and raise ESG
to avoid facing policy and
awareness among all employees.
compliance risks.
The Company needs to Gradually reduce reliance on low-grade
continuously track and adapt energy, increase the use of renewable
Transition is
Technology Risk to new clean technologies, energy, promote energy-saving and Medium Long-term
otherwise risking market environmental technologies, and
obsolescence. prioritize clean technology R&D.
Market demand for green, Regularly collect client requirements
sustainable, and low-carbon related to climate change and
Market Risk High Short-term
products and services is implement improvements
continuously increasing. accordingly.
Poor performance in Fully disclose the latest updates and
environmental protection commitments regarding the Company's
Reputation Risk or social responsibility may ESG (including climate change) Medium Long-term
attract public criticism, initiatives, and continuously advance the
affecting reputation. achievement of climate-related targets.
Opportunity Type Opportunity Description Opportunity Enhancement Strategy Impact Level Period
Opportunities to provide clean Gradually prioritize clean technology
Technological energy for communication R&D, increase R&D investment, and
O ort nit equipment and infrastructure; collaborate with research institutes,
High Long-term
Clean Technology optimize environmentally universities, and enterprises to
Innovation friendly equipment design for promote the application and
efficient use. adoption of clean technologies.
Growing market demand Increase investment in clean
for green, low-carbon, and technology R&D, work closely with
ar et O ort nit
environmentally friendly supply chain partners to jointly
Promotion of Low- communication equipment; develop eco-friendly and energy- High Medium-term
Carbon Products
developing and offering efficient materials and components,
and Services
environmentally compliant and provide key components for
devices can meet this demand. green communication equipment.
Participation in environmental
e tation O ort nit protection and social welfare
Develop climate strategies and action
activities strengthens
Enhancing Brand plans, and continuously advance the Medium Long-term
Awareness and corporate image, enhancing
Company's climate-related goals.
Reputation reputation and gaining public
recognition and support.
Time Horizon—Short-term: within 1 year (inclusive); Medium-term: 1–5 years (inclusive); Long-term: over 5 years.
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Impact, Risk and Opportunity Management
To address the impacts, risks, and opportunities related to climate change, Zhongji InnoLight is accelerating the green transformation
by implementing green manufacturing and practicing sustainable operations. We continuously increase the proportion of renewable
energy used, actively adopt clean energy sources such as solar power and green electricity, reduce carbon emission intensity, and fully
integrate low-carbon development principles into all aspects of our operations and management.
Green Production
The Company focus on low-carbon management across the full product life cycle and the green upgrading of our production operations.
Through initiatives such as product carbon footprint certification and the development of green factories, we translate our green
commitments into concrete actions, promoting the transition of the industry toward low-carbon and environmentally sustainable
development while delivering coordinated ecological, economic and social value. During the reporting period, four product series
manufactured by InnoLight Suzhou — 100G, 200G, 400G and 800G — obtained product carbon footprint certification.
Case InnoLight Suzhou Recognized as the Provincial-level Green Factory
InnoLight Suzhou actively responds to the national call for“energy conservation, emission reduction, and green, low-carbon
development”by advancing its green factory application initiatives, increasing the use of renewable energy, and enhancing its brand
reputation. In 2025, InnoLight Suzhou successfully obtained the provincial-level Green Factory certification, further strengthening
the competitiveness of its products.
First Quarter
Passed the Suzhou Municipal 3A Green Factory assessment and
obtained the certification.
Second Quarter
Followed up on the application for Jiangsu Provincial Green Factory
recognition and related technological upgrading initiatives.
Third Quarter
Collected and consolidated application materials for the Jiangsu
Provincial Green Factory program and submitted the application.
Fourth Quarter
Successfully passed the provincial-level assessment and was InnoLight Suzhou was officially recognized as a
shortlisted on the official list of Jiangsu Provincial Green Factories. Jiangsu Provincial Green Factory
During the reporting period
four product series manufactured
by InnoLight Suzhou — 100G, 200G,
carbon footprint certification.
Product Carbon Footprint Verification Product Carbon Footprint Verification
Statement of 1 Piece of 200G Optical Statement of 1 Piece of 400G Optical
Transceiver Transceiver
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
During the reporting period
The Company further reduces carbon emissions through the procurement of green
electricity and the development of photovoltaic (PV) projects. In 2025, Zhongji
InnoLight's PV projects collectively reduced a total of 3,225.59 tons of CO2₂ equivalent
emissions during the year, while purchased green electricity further reduced 24,276.10
tons of CO2 equivalent emissions. Zhongji InnoLight's PV projects
collectively reduced a total of
equivalent emissions
purchased green electricity
further reduced 24,276.10
tons of CO2 equivalent emissions
Zhongji InnoLight Greenhouse Gas Verification Statement
Green Operations
Zhongji InnoLight actively encourages employee participation in environmental
protection activities through posting energy-saving and environmental slogans,
organizing environmental drills, and hosting incentive-based quizzes on energy During the reporting period
saving and resource efficiency. These initiatives cultivate employees' environmental
awareness and promote green office practices.
In 2025, InnoLight Suzhou actively promoted the use of online meetings, effectively
reducing travel-related costs and associated carbon emissions. Each year, we
organize themed Environmental Month activities, including environmental awareness total carbon emissions from
campaigns and public welfare initiatives, encouraging all employees to contribute employee business travel
to environmental protection. In addition, the business travel platform partnered
by the Company is capable of monitoring and tracking employees’travel-related amounted to 1,910.9 tCO e 2
carbon emissions. During 2025, total carbon emissions from employee business travel
amounted to 1,910.9 tCO2e.
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Metrics and Targets
Most of Zhongji InnoLight's major manufacturing sites, including InnoLight Suzhou and TeraHop Thailand, have established clear
carbon reduction road-maps, setting a target of achieving 100% green energy use by 2040, and striving to contribute to the realization
of carbon peaking and carbon neutrality. In 2025, both InnoLight Suzhou and TeraHop Thailand achieved their target of reaching 10%
green energy usage. InnoLight Suzhou recorded a 47.97% share of green energy consumption, while TeraHop Thailand achieved 15.00%.
Carbon Emission Reduction Roadmap
Goal
Proportion of Green Energy Usage
Year
During the reporting period, we advanced our GHG inventory to gain a comprehensive understanding of ESG-related risks and
opportunities across our supply chain. The results provide an evidence base for the formulation and implementation of relevant policies
and measures, further strengthening our sustainable development capabilities.
In terms of clean technology investment targets, Zhongji InnoLight has established investment goals related to clean technologies,
covering annual targets for photovoltaic and other green electricity investments from 2026 to 2030. In 2025, Zhongji InnoLight invested a
total of RMB 15,311,700 yuan2 in the procurement of photovoltaic and other green electricity.
Carbon Emission Targets
Relative Target Absolute Target
(Scope 1 & Scope 2) (Scope 3 Category 1)
Long-Term Target Reduce carbon emissions per unit of revenue by
Reduce by 20% based on 2025 levels
（2030） 30% compared with 2019
Interim Target Reduce carbon emissions per unit of revenue by
/
（2025） 5% compared with 2024
In 2025, carbon emissions per unit of revenue
Actual Achievement
decreased by 57.76% compared with 2019 and /
in 2025
Includes only the Company's annual procurement of renewable electricity.
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Zhongji InnoLight Product Life Cycle Emission Reduction Targets and Plans
Overall Goal
Establish a product life cycle accounting system to quantify product carbon footprints. Increase the use of recyclable materials to
efforts, Zhongji InnoLight aims to build a comprehensive green supply chain system.
Design
Develop and promote the use of low-carbon, environmentally friendly, or recyclable materials. Establish a green materials
database with clearly defined low-carbon parameters for various materials to provide data support for design selection
and product development.
Procurement
Promote collaborative emission reduction with suppliers by organizing regular supplier emission reduction forums to share advanced
domestic and international practices, while clarifying emission reduction responsibilities and targets across the supply chain.
Manufacturing
Optimize the energy mix by installing distributed photovoltaic power systems on factory rooftops and available open
spaces and by procuring green electricity. Introduce high-efficiency energy-saving equipment, variable frequency
Measures
technologies, and waste heat recovery systems to optimize production processes and reduce energy consumption per
unit of product. Strengthen digital management by establishing a digital energy management system to monitor energy
consumption data in real time, optimize equipment operating parameters through AI technologies, and advance the
development of intelligent manufacturing facilities.
Logistics
Optimize logistics network planning and transportation routes, and implement a regional centralized distribution model to
reduce delivery frequency. Promote low-carbon transportation vehicles and gradually replace fuel-powered trucks. Drive
the adoption of standardized packaging across the supply chain to improve space utilization, increase loading rates, and
reduce energy consumption during transportation.
Product Recycling
Promote coordinated waste management by establishing a solid waste resource utilization system and encouraging by-
product exchange among suppliers. For waste that cannot be recycled or reused, adopt environmentally sound disposal
methods to ensure compliance with environmental protection standards.
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Poll tion Pre ention and Ecos stem Protection
Environmental Management
During the reporting period
Zhongji InnoLight upholds the environmental philosophy of "green innovation,
environmental responsibility first" transmitting this commitment from top to
bottom across all levels of the organization. With a strong sense of responsibility and
the Company's total investment in
commitment, we embed environmental principles into every aspect of our operations,
environmental protection exceeded
clearly defining expectations and motivating all factories and employees to actively
engage in environmental management practices. Together, we strive to protect the planet RMB 5.8036 million 3
and achieve sustainable development.
Environmental Management Approach Environmental Management Strategies Environmental Management Targets
Comply with laws and regulations Focusing on carbon reduction, Regular monitoring of stormwater
and keep improving promoting pollution and carbon and wastewater, exhaust gas
control, and achieving green emissions, and noise, ensuring
Prevent pollution, conserve energy,
transformation compliant discharge with zero
and reduce energy consumption
environmental pollution incidents.
and emissions
Waste generation per unit of output
Strictly control hazardous substances
decreased by 1% compared with
and manufacture green and
the previous year.
environmentally friendly products
Zhongji InnoLight consistently adheres to the principle of green development, strictly complies with environmental regulations, and
effectively implements the "three simultaneous" for environmental protection in production and construction projects. Focusing on
key pollution factors such as exhaust gas emissions, wastewater, solid waste, and noise, the Company has established a comprehensive
management system and developed environmental control procedures, including the Environmental Operational Control Procedure,
Air Pollution Management Specification, Waste Water Discharge Management Specification , and Noise Emission Management
Specification . Through standardized management, we ensure that all emission indicators comply with national and industry standards.
While guaranteeing compliant discharge, the Company continuously strengthens environmental management capabilities and steadily
enhances green production, fulfilling our environmental commitments through concrete actions.
In 2025, all manufacturing subsidiaries of the Company successfully maintained or obtained ISO 14001 Environmental Management
System certification. In addition, InnoLight Suzhou and TeraHop Thailand passed the RBA audit, demonstrating that the Company's
environmental management practices have reached international standards.
ISO 14001 Environmental Management System Certification for Manufacturing Subsidiaries (Example: InnoLight Suzhou,
Jingle Electronic, TeraHop Thailand)
Includes expenditures on environmental protection equipment, materials, and other related supplies, but excludes investments in green electricity.
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Zhongji InnoLight places great importance on responding to environmental emergencies and continuously strengthens a
comprehensive, full-process environmental emergency management system. Based on national regulations such as the Measures for
the Environmental Emergency Response Management and the Measures for the Filing and Management of Emergency Response Plans
for Environmental Emergencies of Enterprises and Public Institutions , the Company has developed the Environmental, Health and
Safety Manual and established a three-tier environmental emergency management system across the group, factories, and workshops.
This framework clearly defines responsibilities at each level, ensuring efficient transmission of emergency directives and coordinated
allocation of emergency resources.
At the group level, we have established an Environmental Emergency Management Leadership Team to coordinate and oversee the
response to major environmental incidents across factories and regions. At the subsidiary and factory level, Environmental Emergency
Command Centers are set up to implement group requirements, develop and execute factory-level emergency plans, and organize drills,
hazard inspections, and on-site emergency responses. At the workshop and team level, designated Emergency Liaison Officers conduct
daily risk inspections, promptly report incidents, and participate in initial emergency responses, ensuring that environmental risks are
addressed quickly and effectively.
At the same time, the Company conducts tiered and role-specific environmental emergency training for employees from management
to frontline positions, ensuring that all personnel possess the necessary knowledge and skills. New employees are required to complete
environmental training and pass the assessment before commencing work. Relevant personnel continuously participate in regular,
practical environmental emergency drills to enhance emergency response capabilities and coordination. During the reporting period,
the Company recorded no environmental spill incidents.
The Company has also established an Environmental Impact Assessment (EIA) management mechanism covering all stages from project
initiation and construction to operation, proactively integrating environmental risk prevention into the decision-making process.
At the project initiation stage, InnoLight Suzhou engages a third-party professional environmental assessment agency to conduct an Environmental
Impact Assessment and the image above is the kickoff meeting for the assessment of InnoLight Suzhou
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Waste and Emissions
Zhongji InnoLight places great importance on managing emissions of exhaust gases, wastewater, waste, and noise, adhering to a zero-
violation environmental policy. The Company strives to strengthen governance, promote sustainable development, prevent the impact
of emissions on local community ecosystems, uphold our environmental image, and actively fulfill our social responsibilities.
Waste Management
Zhongji InnoLight places great emphasis on end-of-life product management, complying with the Law of the People's Republic of China
on the Prevention and Control of Environmental Pollution by Solid Wastes, the Directory of National Hazardous Wastes, and local waste-
related laws and regulations. The Company has developed and strictly implements the Waste Management Procedure , standardizing the
classification, collection, storage, and disposal of waste, and establishing a comprehensive record-keeping system. During the reporting
period, the Company generated 6,116.27 tons4 of non-hazardous waste.
aste T e Treatment ethod
Recyclable Waste Collected and processed by qualified vendors
Regularly collected by qualified vendors and sent to power plants for incineration and energy
Non-Recyclable Waste
recovery
Collected and stored at designated locations, and transported for disposal (incineration or
Hazardous Waste
recovery) by qualified vendors
Domestic Waste Regularly collected and processed by government-designated qualified vendors
Food Waste Harmlessly treated by government-designated qualified vendors
Construction/Demolition Waste Managed and disposed of by the construction party in accordance with government regulations
At the same time, the Company actively responds to regulatory requirements on waste classification management by providing regular
training to enhance employees' awareness of proper waste sorting and disposal, ensuring that waste classification is carried out in an
organized and efficient manner.
Case Standardized Management Training for Solid and Hazardous Waste to Reduce Cross-Contamination
To enhance employees' ability to identify and properly handle
solid and hazardous waste, Zhongji InnoLight conducts
specialized training for relevant positions. The training
systematically covers definitions and classification standards
for solid and hazardous waste, proper collection and transfer
procedures, and applicable laws and regulations. As a result,
the cross-contamination rate decreased from 15% before
training to approximately 1%, establishing a closed-loop
management mechanism of "frontline employees performing
proper sorting, environmental specialists supervising, and
management coordinating implementation." This approach
continuously improves environmental compliance and refined
management capabilities. Standardized Management Training for Solid and Hazardous Waste
Non-hazardous waste includes recyclable waste, non-recyclable waste, domestic waste, kitchen waste, and construction/demolition waste.
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Total Hazardous Waste Total Non-Recyclable Waste Total Recyclable Waste
Waste Indicator (tons) (tons) (tons)
Chemical Safety
Zhongji InnoLight maintains strict control over chemical safety. Based on relevant chemical laws and regulations, international
standards, and client requirements, the Company has developed the Chemical Management Procedure , which rigorously governs all
stages of chemicals, including introduction, procurement, storage, transportation, use, and disposal. Green management practices
are implemented to protect the environment. During the waste disposal phase, chemical decommissioning strictly follows SDS
requirements. The qualifications of disposal vendors are carefully verified, and all handling is conducted in strict compliance with laws
and regulations to prevent harm to the environment and personnel.
At the same time, to further enhance employees' safety awareness and strengthen their ability to manage environmental risks
associated with chemicals, Zhongji InnoLight provides annual chemical safety management training for employees and regularly
organizes chemical spill emergency drills. The Company continuously improves the full-process management of chemicals, from storage
and use to disposal, promoting ongoing enhancement of environmental and safety management standards.
Hazardous Chemicals Management Procedure
New
Evaluate the environmental, health, and safety risks of new chemicals and the corresponding control measures.
Chemical
Chemicals that do not meet relevant requirements are prohibited from introduction and use.
Introduction
Rigorously review the qualifications of chemical suppliers, including business licenses, hazardous chemicals
operation permits, hazardous chemical road transportation permits, and operation/escorting certificates. Suppliers
Procurement
must also provide valid Safety Data Sheets (SDS) and third-party testing reports. Procurement is halted if the
supplier does not meet these requirements.
Classify chemicals according to their hazardous characteristics as specified in the SDS so as to ensure standardized
Storage and
transportation and storage. Also ensure sufficient on-site emergency materials, warning signs, and anti-leakage
Transportation
measures are in place, and conduct regular inspections to guarantee safety.
Train operators on relevant knowledge to ensure they use personal protective equipment (PPE) according to SDS
Usage requirements and follow operational guidance for handling chemicals. Regular emergency drills are conducted to
enhance personnel response capabilities for chemical incidents.
Dispose of chemicals strictly according to SDS requirements. When selecting disposal vendors, carefully verify their
Waste
qualifications, and ensure disposal is conducted in full compliance with laws and regulations to prevent harm to the
Disposal
environment and personnel.
The increase in total hazardous waste is mainly due to higher production capacity and expanded factory scale, which led to a greater volume of
activated carbon replacement in new environmental facilities.
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Case Chemical Spill Emergency Response Drill
In August and October 2025, InnoLight Suzhou and TeraHop Thailand conducted chemical spill emergency drills at chemical storage
and usage sites, simulating scenarios in which containers rupture during handling. Emergency response plans were promptly
activated on-site, and standardized response procedures were carried out, effectively enhancing the safety of chemical storage and
use, improving employees’emergency response capabilities, and reducing environmental and safety risks.
Chemical Spill Emergency Response Drill
TeraHop Thailand Chemical Emergency Drills
Wastewater Management
The Company ensures compliant management of wastewater discharge across all factories to minimize environmental impact. Each
factory engages qualified third-party agencies to conduct annual testing of domestic sewage, covering parameters such as pH, Chemical
Oxygen Demand (COD), Biochemical Oxygen Demand (BOD), ammonia nitrogen, total phosphorus, and total nitrogen, ensuring that
wastewater discharge meets local water pollution prevention regulations. In 2025, Zhongji InnoLight recorded no violations related to
water intake or wastewater discharge.
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Exhaust Gas Management
To practice the concept of green development, implement ESG management requirements, and comply with national and local
regulations on exhaust gas emissions, the Company has established the Air Pollution Management Specification to govern the
generation, collection, treatment, and prevention of exhaust gases. Guided by the core approach of "source reduction, process control,
end-of-pipe treatment, and continuous improvement," the Company works to minimize exhaust gas emissions. In 2025, measures
such as alcohol recycling were adopted to reduce emissions. During the reporting period, all emissions were compliant with relevant
standards and regulations.
Exhaust Gas Emissions Management Targets
Ensure that the concentration, rate, and total volume of emissions from all production processes fully comply with the Law of the
People's Republic of China on the Prevention and Control of Atmospheric Pollution, the Emission Standard for Fugitive Volatile
Organic Compounds (VOCs) , and other applicable national, industry, and local standards applicable to the operating location.
Engage qualified third-party agencies to conduct periodic monitoring of exhaust gas emissions to ensure compliant discharge.
Enhanced Process Control
Source Control and Process Management
Esta lish a management ledger or giti e emissions:
cti el romote ra and a iliar
maintain records and controls over fugitive emission
material s stit tion: prioritize the
sources across storage, loading and unloading, transfer,
procurement of low-VOC, low-toxicity, and
and production processes; conduct regular monitoring
Exhaust Gas
odorless raw and auxiliary materials, and
of fugitive exhaust gas emissions to track pollutant
Emissions
gradually phase out high-volatility, high-
concentration levels.
Management
pollution solvent-based products to reduce
Plan
emissions. Strengthen o eration, maintenance, and emergenc
management: enhance routine inspection and
O timi e rod ction rocesses:
maintenance of exhaust gas emission collection pipelines
promote enclosed, continuous, and
and treatment facilities to ensure they remain in good
automated production technologies to
and effective condition; establish emergency response
reduce unorganized emissions during
procedures for abnormal exhaust gas emissions to improve
manufacturing.
environmental risk management capabilities.
Noise Management
The Company places great importance on the impact of production noise on the environment and employee health. Qualified third-
party agencies are regularly engaged to monitor noise levels across factory sites, and efforts are continuously made to reduce noise
throughout all facilities.
Selection and Installation
In addition to performance considerations, environmental requirements are taken into account during equipment
procurement to ensure minimal negative environmental impact during operation. Installation plans also consider
operational noise, with sound insulation and noise reduction measures implemented in advance.
Noise Management
Equipment Operation
Regarding the noise generated during equipment operation, to ensure compliance, equipment managers perform regular
maintenance in accordance with the Equipment Management and Maintenance Procedures , ensuring that noise emissions
meet the required standards.
Regular Noise Monitoring
Each year, qualified environmental monitoring agencies are engaged to conduct regular testing of noise emissions
generated during equipment operation, in accordance with applicable local regulatory requirements. This ensures that
boundary noise levels comply with the Emission Standard for Industrial Enterprises Noise at Boundary and other relevant
noise control standards in the locations of operation.
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Case Noise Reduction Upgrade at InnoLight Tongling
InnoLight Tongling advanced its factory noise management by implementing noise reduction modifications on exhaust fans
and optimizing the noise performance of cooling towers and module unit clusters. Through technical upgrades and operational
adjustments of the relevant equipment, the Company effectively reduced noise emissions during equipment operation, minimizing
impact on the factory and surrounding environment.
InnoLight Tongling Noise Reduction Upgrade
Biodiversity Protection
Zhongji InnoLight places great emphasis on ecological civilization and upholds the philosophy of "green development and responsible
stewardship," actively promoting environmental public welfare initiatives. Through activities such as tree planting and community
waste collection, the Company integrates environmental protection concepts into employees' daily practices, guiding them to adopt a
green lifestyle and collectively contribute to preserving the ecological environment and building a sustainable, green community. We
strictly observe ecological protection red lines and strengthen environmental management and control over ecologically sensitiveareas,
including Yangcheng Lake, Jinji Lake and Dushu Lake.
InnoLight Suzhou Tree-Planting Activity
eso rce E cienc and Circ lar Econom
De elo ment
Energy Management
Zhongji InnoLight is committed to strengthening energy management through well-defined goals and policies. The Company
continuously optimizes its energy mix, increases the share of renewable energy, and enhances overall energy efficiency. By 2040,
InnoLight Suzhou and TeraHop Thailand aim to achieve 100% green energy usage.
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Energy Management Objectives and Policies
Energy Management Objectives and Policies
Objectives: Energy conservation and efficiency improvement, continuous progress; the light of technology, illuminating the future.
Principle: Strictly comply with national energy-saving and environmental protection laws, regulations and standards, fulfill
international environmental conventions, and implement stricter internal energy-use control standards
Continuous innovation and improvement of production processes, optimization of energy structure, reduction of
energy consumption and energy costs
Illuminate dreams through technology and light up the future with innovation
Energy Baseline, Targets and Performance of Zhongji InnoLight:
Comprehensive energy consumption
In 2025, Zhongji InnoLight procured a total of
Parameter per RMB 10,000 of revenue (kg of 40,000 MWh of green electricity
standard coal/RMB 10,000 revenue)
Energy Baseline
(2024 Actual)
exceeding the planned 20,000 MWh
Energy consumption per unit
decreased by 5% compared with 2024.
We plan to further increase the volume of green
Energy consumption per unit decreased
Actual Performance electricity procurement in 2026
by 5.17% compared with 2024.
Energy Conservation and Emissions Reduction
Zhongji InnoLight actively responds to China's "Carbon Peaking and Carbon Neutrality" goals and has established energy management
procedures in accordance with the ISO 50001 Energy Management System. We have developed a comprehensive set of energy
conservation and emissions reduction policies, including the Energy Management Manual and Energy Management Procedure. Each of
our manufacturing sites advances green practices through site-specific energy-saving initiatives, extending sustainable practices across
the value chain. These efforts ensure the rational use of
resources, improve resource utilization efficiency, and
minimize energy consumption wherever possible.
Each subsidiary has established an Energy Management
Committee and dedicated task forces to identify energy-
saving opportunities, set energy efficiency targets, formulate
energy-saving measures, and promote energy conservation
and emission reduction practices. Incentive mechanisms,
such as Energy Innovation Awards and Rationalization
Proposal Awards, have been introduced to encourage
employees to actively participate in energy management
initiatives. Energy performance is reviewed on a regular
basis, with outstanding teams and individuals recognized
and rewarded. Progress against targets is also summarized
to maximize both economic and social benefits. ISO 50001 Certification for Energy Management System
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Case Optimization of the Automated Control System for the Xiasheng Road Chiller Plant to Improve Energy Efficiency
To further enhance energy utilization efficiency,
I n n o L i g h t S u z h o u i m p l e m e n te d a d e e p
optimization project for the automated control
system of the chiller plant at the Xiasheng Road
facility. By increasing the frequency of data
collection and analysis and integrating AI-based
and mechanism-model algorithms, the system
dynamically optimizes equipment operations
to unlock additional energy-saving potential.
The system was officially commissioned in
March 2025. Monitoring data through the
end of 2025 indicates an energy-saving rate
of approximately 7%-8%, with an estimated
annual electricity savings of 270,000 kWh.
This translates into cumulative electricity cost
savings of approximately RMB 203,000, achieved
a reduction of approximately 164.59 tCO 2e,
further advancing refined energy management
and delivering tangible energy conservation
and emissions reduction outcomes. Deeply Optimize Automatic Control Software
Case Energy Efficiency Retrofit at InnoLight Tongling
To improve equipment energy efficiency and reduce overall energy consumption at the facility, InnoLight Tongling installed after-
coolers on each unit to reduce exhaust temperatures to approximately 25°C, effectively preventing heat accumulation during
operations. This measure generated annual electricity cost savings of approximately RMB 2.964 million, achieved a reduction of
approximately 2,409.14 tCO2e, significantly improving energy utilization efficiency while reducing carbon emissions intensity. The
initiative provides a replicable example of effective energy conservation and efficiency improvement practices.
Renewable Energy Replacements
The Company continuously explores the use of renewable energy to replace traditional energy sources, increasing the share of
renewables through initiatives such as the development of on-site photovoltaic (PV) systems. In 2025, Zhongji InnoLight's PV projects
achieved a total installed capacity of 5,141.6 kW, generating 5.2913 million kWh of electricity during the year. Green electricity
consumption across the Company (including PV generation and purchased green electricity) accounted for approximately 16% of total
electricity consumption. In 2026, the TeraHop Thailand PV project will commence operation.
Suzhou Xiasheng Road InnoLight Optoelectronics InnoLight Tongling Rooftop PV
Photovoltaic Project Facility Rooftop PV Project Industrial Park Rooftop PV Project Project
Self-built PV system Rooftop PV system covering Covers 43,931.19 m?,
covering 1,800 m?, with approximately 2,700 m?, with representing 78.47% of the
Project Overview
an installed capacity of a total installed capacity of park area, with a total installed
（10,000 kWh）
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Water Management
Water Risk Assessment
Zhongji InnoLight recognizes the impact of water risks on business continuity and has integrated water risk assessment into its
established risk management framework. The Company conducts annual assessments to evaluate how its water usage affects human
health, community ecosystems, and habitats. A long-term goal has been set to "provide 100% functional, safely managed quality water,
sanitation, and hygiene facilities for all employees." Additionally, the Company maintains a water pollution source inventory to identify
potential contamination risks across production, facility maintenance, waste disposal, and daily employee activities. The Company also
requires supply chain partners to report total water withdrawal and recycling volumes to jointly safeguard water security.
Water Resource Conservation
Zhongji InnoLight's primary water supply is sourced from the municipal water network and is used for domestic purposes, indirect
cooling for refrigeration equipment, and cleaning processes in product manufacturing. We promote water conservation and work
to minimize water wastage by developing and implementing regular water-saving plans. To reduce water consumption in office and
domestic operations, we implement reclaimed water reuse and utilize cooling tower circulating water for toilet flushing and landscape
irrigation systems. In addition, we conduct routine inspections to detect leaks, promote water-saving practices, and raise awareness
of water conservation methods among employees to reduce water use and prevent wastage. We have established the clear water
conservation target: by 2026, Zhongji InnoLight aims to reduce water consumption intensity (per unit of revenue) by 5% compared to
During the reporting period, TeraHop Thailand implemented a reclaimed water reuse project that saved 14,553 m? of water and
generated THB 280,581.84 in water cost savings.
TeraHop Thailand Reclaimed Water Reuse project
AHU AHUP/MAU MAU AHU
Buffer Buffer
M2 M
tank tank
Cooling to er Cooling to er
Resource Recovery and Reuse
Zhongji InnoLight actively explores approaches to resource conservation and material recycling, continuously advancing circular
resource practices throughout the production process and optimizing the use of production resources. We have established a sound
internal waste recycling system to promote the efficient use of resources and create shared value for the environment, society and
economic development. Through collaboration with external stakeholders, we also develop recycled products, reduce waste generation
and support the development of a circular economy.
We actively promote green product design and the recycling of packaging materials, while advancing the circular use of core structural
components in its products. Packaging is designed using standardized and integrated solutions to maximize material lightweighting.
The Company also improves the reuse rate of wood materials by recycling pallets used for material packaging, finished goods
transportation, and equipment handling, as well as wooden packaging used for equipment. Throughout the year, approximately 486.42
tons of waste were recovered and reused, accounting for 64.74% of the total recyclable waste.
At the same time, we promote the recycling of non-hazardous and recyclable materials across our manufacturing facilities. The Suzhou
and Thailand facilities have obtained QC 080000 certification, ensuring that hazardous substances are not used in our production
processes and that our operations comply with RoHS requirements and other relevant standards. In addition, recyclable waste materials
with recovery value, such as PCB offcuts, chips, lead-free solder paste and optical fibers, are recovered through qualified vendors,
increasing the reuse of recyclable materials while reducing resource consumption and environmental impacts.
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
arnessing Di erse
Sta eholders to Co-create
and Share al e
Zhongji InnoLight continues to increase investment in technological innovation and product and service quality enhancement,
achieving positive outcomes. We attach great importance to building a responsible supply chain, strengthening data security
and client privacy protection, safeguarding employee rights and interests, and actively fulfilling our social responsibility and
public welfare commitments. By integrating ESG requirements into the entire process of business operations and management,
we continuously enhance operational resilience, strengthen the foundation of stakeholder trust, and promote coordinated and
sustainable development between the Company and society.
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Strengthening R&D Partnering Across the Value Empowering Talent and Fulfilling Social Responsibility
Capabilities to Drive Chain to Build a Sustainable Fostering a People-Centric and Contributing to
Technological Innovation Ecosystem Workplace Community Development
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Strengthening D Ca a ilities to Dri e
Technological Inno ation
Against the backdrop of the rapid development of artificial intelligence, cloud computing and next-generation information
infrastructure, technological innovation has become a core driver for optical communication companies to achieve technological
leadership and high-quality growth. Zhongji InnoLight places technological innovation at the center of its corporate strategy and
governance framework. By strengthening governance structures, increasing R&D investment, enhancing intellectual property protection
mechanisms, and participating industry standards development, we continuously improve our capabilities in technology iteration and
the commercialization of innovation outcomes.
Governance
The Company integrates technology innovation into the strategic development planning, corporate governance framework, enterprise-
wide risk management system, and daily operational management, clearly defining responsibilities at all organizational levels.
Governance Structure
Board of Directors Sustainability Committee ESG Management Working Group
(Decision-making) (Management) (Execution)
As the Company's highest decision- Responsible for overseeing the Responsible for systematically
making body, the Board of Directors implementation of the technological identifying technology development
is responsible for re vie wing the innovation strategy and the allocation trends, industry upgrade opportunities,
technological innovation strategy of resources, coordinating departments and potential risk impacts related to
and major R&D investment decisions, to execute innovation initiatives, and technological innovation. The team
defining innovation objectives and supervising the effectiveness of their evaluates how the application of new
phased plans, and ensuring that the implementation. technologies, digital transformation
direction of technological innovation initiatives, and R&D investments affect
aligns with the Company's overall the Company's operational efficiency
strategy and long-term value creation and product competitiveness, and
goals. regularly reports assessment results and
progress updates to the Sustainability
Committee and the Board of Directors.
Strategy
Risk Period Response Measures
Under the driving forces of artificial
intelligence and cloud computing, the
iteration speed of optical communication
Continuously strengthen top-level
technology is accelerating. If the
design for technology development,
Technology Company fails to accurately grasp
Long-term enhance the Company's ability to iterate
Innovation Risk technological development directions
core technologies and commercialize
or to advance key technology R&D and
innovations.
commercialization in a timely manner,
it may lead to a decline in product
competitiveness.
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Risk Period Response Measures
Improve the intellectual property
If intellectual property management
management system, strengthen
is inadequate during patent layout
patent protection and compliance
Intellectual or external technology usage, the Medium- to
management for core technologies, key
Property Risk Company may face infringement Long-term
processes, and innovation results to
disputes or insufficient protection of core
ensure the security and sustainability
technologies.
of technological achievements.
Opportunity Period Response Measures
Technological innovation remains a key
Monitor policy developments,
focus of China's 15th Five-Year Plan.
implement relevant measures,
Policy Policies such as tax incentives, industrial Medium- to
strengthen strategic planning and
Opportunity support, and financing assistance provide Long-term
project management, and optimize
a favorable external environment for the
allocation of innovation resources.
Company's technological innovation.
Continue advancing R&D of high-speed
The rapid development of artificial
optical modules and next-generation
intelligence and cloud computing drives
optical interconnect technologies,
Market growing demand for high-speed, low-
Long-term accelerate product iteration and market
Opportunity power optical communication products,
deployment, and expand into new
creating favorable conditions for the
application areas and business growth
Company's business growth.
opportunities.
Impact, Risk and Opportunity Management
Zhongji InnoLight upholds the management principle of "Tech Innovation Leads the Future, and IPR Creates Wealth" and has
established clear responsibilities and workflows for managing technological innovation-related risks. The Company integrates
innovation and intellectual property (IP) risks into its overall risk management framework for ongoing identification, assessment, and
control. Furthermore, Zhongji InnoLight's General Manager regularly (at least annually) conducts reviews to assess the suitability and
effectiveness of the IP management system.
Research and Development Innovation
During the reporting period
Zhongji InnoLight places great emphasis on innovation and R&D, focusing deeply
on the optical communication field and strengthening its capabilities in product
research, design, and manufacturing. Guided by the values of "Innovation, Speed,
Discipline, Teamwork" and the philosophy of "Innovation Lights Our Future", the
Company continuously increases the R&D investment. We have a strong R&D team The Company had 2,169 R&D personnel
and advanced facilities, consistently launching new products and technological
innovations to maintain its leading position in the global optical module market.
The Company has allocated dedicated R&D funds, cultivated a high-quality talent
invested RMB 1,675.9311 million in R&D
pool, invested in advanced equipment, and maintained close collaborations with
universities and research institutions, creating a favorable environment for innovation.
In addition, Zhongji InnoLight has established systems such as the Research and
representing a 25.77%
Development Performance Management Policy , and encourages innovation through year-on-year increase
mechanisms like annual outstanding project awards and quarterly challenge OKRs,
fostering employee creativity and stimulating innovative energy.
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Intellectual Property Protection
Intellectual property (IP) is a core element of market competitiveness, and enhancing the Company's IP management is a key guarantee
for strengthening independent innovation capabilities. Zhongji InnoLight strictly complies with relevant laws and regulations, including
the Trademark Law of the People's Republic of China and the Patent Law of the People's Republic of China , and has established a
comprehensive set of internal IP management systems, including the IPR Manual, Intellectual Property Information Resource Control
Procedure, Trademark Management Policy, Patent Management Measures, Confidentiality Management Policy , and Intellectual Property
Management Guidelines for Procurement and Cooperative (Commissioned) Development Processes .
Internally, Zhongji InnoLight promotes IP awareness among all employees through training, education, publicity, and meetings,
ensuring that staff understand and support the Company's IP policies. Externally, the Company has established specific management
norms for procurement and cooperative (commissioned) development processes to prevent potential IP infringements. These norms
clearly define responsibilities and ownership with partners, establish emergency protection measures, safeguard the legal rights of both
the Company and our partners, and firmly resist unfair competition. With a portfolio of core patents and technological reserves, Zhongji
InnoLight has built a solid foundation for the Company’s future development.
Participation in Industry Standards Development
Zhongji InnoLight actively participates in the drafting and development of industry standards, engages in various industry events to
enhance peer communication and knowledge sharing, fosters collaboration, and maintains strong partnerships with upstream and
downstream enterprises, collectively promoting industry development.
Type International Industry Standards Domestic Industry Standards
Industry Standards
OSFP MSA LPO-MSA CCSA
Organization
Specification Specification 400Gb/s Intensity Modulation Pluggable Optical Transceiver
for OSFP Octal 400G-FR4-LPO Module Part 3: 4×100Gb/s; YD/T 3538.3-2025
Small Form Rev 1 Reliability Test Methods for Non-Hermetic Optical Electronic
Factor Pluggable Devices for Communications; YD/T 6449-2025
Module Rev 5.22 Fiber Optic Connectors Part 7: UC Type; YD/T 1272.7-2025
Standard
OSFP-XD Coherent Optical Module Software Management Interface Part
Documents
Specification Rev 2: QSFP Series; YD/T 4861.2-2025
Module Part 3: 2×400Gb/s CWDM4；YD/T 6086.3-2025
Module Part 2: 4×200Gb/s；YD/T 6086.2-2025
Metrics and Targets
Zhongji InnoLight consistently regards technological innovation as the core driver for high-quality development. By continuously
increasing R&D investment, improving the intellectual property management system, and supporting industry development, the
Company provides solid support for sustainable growth, industrial upgrading, and enhancement of international competitiveness.
Clear quantitative targets have been established, and through steady growth in both the quantity and quality of patents, the Company
achieves a dual enhancement of technological innovation and business value.
By the end of the Total number of patents of which, Newly authorized patents of which,
reporting period （pieces） invention patents （pieces） invention patents
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Partnering cross the al e Chain to ild
a S staina le Ecos stem
Products and Services
Zhongji InnoLight consistently implements the quality policy of "Courageous Innovation, Swift Response, Attention to Detail,
Continuous Improvement," while adhering to the service philosophy of "Innovation, Speed, Discipline, and Teamwork." We maintain
rigorous control over product quality and place strong emphasis on quality risk prevention and the cultivation of employee quality
awareness. Through refined management practices, the Company clearly defines organizational and personnel responsibilities for
risk management across the entire product life cycle. At the same time, we advance innovative products, fulfill social responsibilities,
establish clear quality red lines, and deliver high-value, high-quality products and services to our clients.
Governance
Governance Structure
Board of Directors Sustainability Committee ESG Management Working Group
(Decision-Making) (Management) (Execution)
Reviews product strategy and significant Responsible for reviewing major risks and Identifies and assesses risks and
matters related to quality and brand improvement plans related to products and opportunities related to product
reputation. Oversees the operation of services, coordinating cross-departmental quality, safety compliance, and client
the product and service governance resource allocation, supervising the service, and regularly reports progress
system to ensure that product quality implementation of corrective actions and risk status related to product
management objectives align with the for significant quality issues, and driving and ser vice management to the
Company’s long-term development continuous improvement to enhance Sustainability Committee.
strategy and sustainability goals. customer satisfaction.
Strategy
We pursue technological innovation to enhance We accurately understand and communicate
Swift Response
Courageous
Innovation
product quality and continuously improve client and market needs, respond proactively
manufacturability and consistency through and efficiently, and remain committed to
innovation in methods and processes, ensuring providing high-quality products and services
stable and reliable product quality. that create value for our clients.
Quality
We uphold a craftsmanship mindset and Policy
Improvement
ensure that every detail throughout the entire W e e n co u ra ge pa r t i c i pat i o n a c ro s s t h e
Continuous
Attention
to Detail
product realization process is executed with organization, fully leverage employee potential,
precision. Through refined management and and pursue ongoing improvement to jointly
strict adherence to processes, we strive to build a culture of quality excellence.
achieve right-first-time quality.
Violations of the Company's environmental protection
Violations of change management regulations
requirements
Failure to fulfill responsibilities regarding known Quality Violations of the Company's material mix-up prevention
quality defects Red Lines and management requirements
Falsification of quality data, reports, or documentation Unauthorized outsourcing of products without prior approval
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Zhongji InnoLight places strong emphasis on enhancing product quality and client service. Through a comprehensive quality
management system and supporting policies, we ensure that every stage—from research and development to after-sales service—meets
high standards. At both the strategic and operational levels, we strengthen full lifecycle management of our products, enhance supply
chain resilience, and optimize client service capabilities. These efforts enable us to respond effectively to market dynamics and evolving
client needs while continuously strengthening our global competitiveness.
Risk Description Period Response Measures
Strengthen the quality management system
During product manufacturing and
and implement full lifecycle product quality
delivery, quality control issues or failure
management; enhance employee quality
Product Quality to meet client requirements may lead to
Short-Mid Term awareness and quality review processes to
Risk product defects and client complaints,
prevent quality risks; monitor production
potentially affecting the Company's
processes in real time and promote
reputation and market competitiveness.
intelligent management.
Inaccurate identification of client needs, Establish cross-departmental coordination
ineffective internal communication and mechanisms and leverage rolling forecasts,
Client Demand
coordination, or inadequate delivery process dynamic material preparation, and capacity
Response and Short Term
management may result in delayed order planning to ensure rapid and accurate
Delivery Risk
fulfillment, declining client satisfaction, and responses to client needs while maintaining
potential loss of market share. delivery quality and speed.
Improve the client service system and
In after-sales service, failure to respond
establish procedures for handling client
to client issues in a timely manner or
complaints and product returns to ensure
Service Quality improper handling of such issues may
Short Term issues are resolved in a timely manner;
Risk result in client dissatisfaction, affecting
optimize client feedback management
long-term client relationships and market
processes to enhance service responsiveness
reputation.
and issue resolution capabilities.
Opportunity Description Period Response Measures
Improve client communication mechanisms
and conduct regular client satisfaction
Through refined client service and
Service surveys, adjusting service strategies in
customized solutions, we can enhance
Improvements a timely manner based on feedback;
client satisfaction and loyalty, thereby Mid-Long Term
Driven by Client strengthen training for after-sales service
strengthening long-term and deeper
Needs teams to improve the efficiency and quality
client relationships.
of issue resolution and ensure prompt
responses to client needs.
Advance digitalized and intelligent
Refined management in product
manufacturing and leverage data analytics
Internal Efficiency manufacturing and service delivery can
and management tools to improve
Improvements improve operational efficiency, reduce
Mid-Long Term production efficiency; optimize production
from Refined costs, and enhance resource utilization,
processes to reduce unnecessary resource
Management further strengthening the Company's
waste and enhance overall operational
profitability.
performance.
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Impact, Risk and Opportunity Management
Zhongji InnoLight places strong strategic emphasis on product and service excellence. Based on this commitment, we systematically
identify key risks related to product quality management, client demand responsiveness, technology iteration, and service quality,
and implement effective management measures to address them. At the same time, we actively capture opportunities arising from
technological advancements and evolving client needs in the industry. By continuously improving product and service quality, delivery
efficiency, and client satisfaction, we strive to provide high-quality products and efficient services to our clients, further strengthen our
competitiveness in the global market, and support sustainable development.
Product Quality Management
Relying on internationally recognized standards such as ISO
management system that covers the entire product life cycle. ISO 9001
The system focuses on key modules including product quality TL 9000
assurance, traceability management, client satisfaction
enhancement, continuous improvement, and training system Products
Quality Traceability
Zhongji
development. Through a combination of institutionalized
Assurance
InnoLight Quality
management, process control, and data monitoring, we ensure
Management
product stability and continuously improve service quality.
System
D ring the re orting eriod Continual Custommer
Improvement Satisfaction
ll man act ring s sidiaries o Zhongji InnoLight Training
obtained or maintained ISO 9001 Quality Management System
System certification.
Quality Risk Prevention and Control
Through technological innovation, Zhongji InnoLight advances the digitalization and intelligent
development of product manufacturing, strengthening the identification, assessment, and
management of quality risks to reduce product defects and ensure product quality. By integrating key
quality data into visualized process quality dashboards, we present operational differences across
manufacturing sites in an intuitive manner, enabling effective comparison to identify and prevent
potential quality risks. In addition, system functions have been integrated to automate data capture,
improving work efficiency, reducing manual errors, and enhancing the precision of data analysis.
Quality Awareness Development
Zhongji InnoLight attaches great importance to cultivating employee quality awareness. During
the reporting period, our domestic and overseas manufacturing sites and subsidiaries conducted
documentation, quality management procedures and tools, electrostatic discharge technologies and
management practices, and RMA market analysis. Through initiatives such as the "Quality Month"
campaign, we further strengthened employees' quality awareness and enhanced their professional
quality management capabilities.
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
InnoLight Tongling Conducts "Quality Month" Campaign
InnoLight Suzhou Conducts "Quality Month" Campaign
Case Optimizing the Traceability System to Achieve 100% Closed-Loop Tracking of Audit Findings
InnoLight Suzhou's original internal audit management system lacked a
unified classification and consolidated analytical mechanism, resulting in low
efficiency in issue tracking and blind spots in closed-loop management. To Inbound &
improve the systematic management and traceability of audit findings, we Outbound
upgraded and optimized the traceability system. By enabling the PITS system Status
to directly connect with the data warehouse, the Company implemented Supplier Tracking
Data
centralized management and automated traceability of issue-related data. Material
Warehouse
Batch
Following the system upgrade, audit findings can now be categorized and analyzed Development
Traceability
PITS
by manufacturing site, product category (optics/modules), and product model. The
Optimization
system displays the total number of issues, the number of open issues, and closure
rates, effectively strengthening issue tracking and monitoring of corrective actions.
Add IPR
Hardware
Repair
After implementation
Resource
Records in
Upgrade
PITS
Issue traceability
achieving 100% closed-loop Add PN&
Model
management of audit findings and Name
efficiency improved by
significantly enhancing the transparency
approximately 85% of quality management
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Developing Green Products
Zhongji InnoLight advances the integration of sustainability principles into business operations through comprehensive green product
management. We identify and manage risks across research and development, procurement, manufacturing processes, and testing to ensure
that our products meet applicable regulatory requirements and client expectations regarding environmentally responsible products. During
the R&D design and material selection stages, we follow international regulations and value chain requirements and apply product design
principles focused on reducing hazardous substances. This approach enables us to proactively avoid materials that may contain hazardous
substances or fail to comply with regulatory requirements, while working collaboratively with the supply chain to minimize environmental
impacts. In the meantime, the Company has established a six-dimension green product management framework. By strengthening
environmentally friendly design practices, we ensure compliance with domestic and international regulations, including RoHS, REACH,
and POPs. We also specifically identify and control more than 50 categories of chemical substances in products and packaging materials,
including ozone-depleting substances and radioactive materials. These substances are fully incorporated into our hazardous substance
reduction management system, enabling environmental sustainability considerations to be integrated at the product design stage.
Zhongji InnoLight Client Hazardous Substance Management Standards
Lead（Pb）+ Cadmium（Cd）+ Mercury Client Standards California Proposition 65 POPs
Int
ern Reg
（Hg）+ Hexavalent Chromium
e
tiv
atio ula
TSCA
ec
（Cr6+）<100ppm
na
Dir
l En ons
ing
viro
ti
g
nm
ka
ent
c
Pa
al
Six-Dimension Green
Product Management Lead, Cadmium, Mercury,
S
Framework
H
Ro
Hexavalent Chromium,
RE
AC
ina
Polybrominated Biphenyls (PBBs),
H
SVHC Candidate List
Ch
and Polybrominated Diphenyl Ethers
Restricted Substances List (PBDEs)
RoHS
Lead, Cadmium, Mercury, Hexavalent Chromium, Polybrominated Biphenyls (PBBs), Polybrominated Diphenyl Ethers (PBDEs),
Diisobutyl Phthalate (DIBP), Bis(2-ethylhexyl) Phthalate (DEHP), Benzyl Butyl Phthalate (BBP), and Dibutyl Phthalate (DBP)
The Company holds IECQ QC 080000:2017 Hazardous Substance Process Management System certification, as well as CE, FDA, UL, and
CB product safety certifications.
IEC QUALITY ASSESSMENT SYSTEM (IECQ)
For rules and details of the IECQ visit www.iecq.org UL-US-2153769-5
E328154-20211129
IECQ Certificate of Conformity Attestation of Compliance
No. N5A 069765 0152 Rev. 04
Hazardous Substance Process Management Certificate of
IECQ Certificate No.: IECQ-H LCIE 24.0016 Issue No.: 1 Status: Current Holder of Attestation: InnoLight Technology (Suzhou) Ltd.
Supersedes:
CB Reference No.: QN806643
Issue Date:
Expiration:
Org Issue: 2024/11/28 8 Xiasheng Road,
Suzhou Industry Park
Compliance
PEOPLE'S REPUBLIC OF CHINA
Applicable to:
• EU Directive 2011/65/EU (“RoHS – Restriction of the use Of certain Hazardous Substances”) in electrical and Product: Laser Module
Issued to:
electronic equipment. Including all published amendments
This Attestation of Compliance is issued on a voluntary basis and confirms the compliance with the InnoLight Technology (Suzhou) Ltd
• EU Directive 94/62/EC (“Packaging and Packaging Waste”) and its amendments listed electrical safety standards for electrical equipment below 50 V AC or 75 V DC, which is below Certificate Number: 8 Xiasheng Road
• Customer specified requirements the voltage limits of the Low Voltage Directive 2014/35/EU. It refers only to the particular sample
UL-US-2153769-5 Suzhou Industry Park Suzhou, Jiangsu Sheng 215123
submitted for conformity assessment. For details see: www.tuvsud.com/ps-cert
China
Innolight Technology (Suzhou) Co., Ltd.
No 8, Xiasheng Road, Suzhou Industrial Park, Jiangsu Province This certificate confirms that representative samples of:
Test report no.: 4842021183204 Report Reference: AZOT2 - Audio/Video, Information and Communication
China
The organization has developed and implemented restricted/hazardous substances process management E328154-20211129 Technology Equipment - Component
procedures and related processes that have been assessed by the IECQ Certification Body in accordance with See Addendum Page for Product Designation(s).
IECQ 03-1 and IECQ 03-5 for the issuance of this certificate and found to be in conformity with the applicable
Have been evaluated by UL in accordance with the component requirements in the
requirements of the IECQ Hazardous Substances Process Management Scheme and in respect of the IECQ Issue Date: Standard(s) indicated on this Certificate. UL Recognized components are incomplete
Specification: Date, 2024-10-09
• IECQ QC 080000:2017 - Hazardous Substance Process Management System Requirements intended for installation in complete equipment submitted for investigation to UL LLC.
( Bin Li )
UL 62368-1, 2nd Ed., Issue Date: 2014-12-01
This Certificate is applicable for the following scope of activity:
Design, manufacture and sales of optical transceiver module Additional Information:
See UL Product iQ at https://iq.ulprospector.com for additional information.
This Certificate of Compliance indicates that representative samples of the product
described in the certification report have met the requirements for UL certification. It
does not provide authorization to apply the UL Recognized Component Mark. Only
the Authorization Page that references the Follow-Up Services Procedure for
ongoing surveillance provides authorization to apply the UL Mark.
Only those products bearing the UL Recognized Component Mark should be
considered as being UL Certified and covered under UL’s Follow-Up Services.
Look for the UL Recognized Component Mark on the product. 1
Issued by the Certification Body: LCIE Bureau Veritas
France David Piecuch
UL Mark Certification Program Manager
Authorized person: Any information and documentation involving UL Mark services are provided on behalf of UL LLC (UL) or any authorized licensee of UL.
For questions, please contact UL Solutions Customer Service at https://www.ul.com/contact-us.
Jér?me REYSSON
2024 UL LLC. All rights reserved.
Page 1 of 3 Page 1 of 4 Form-ULID-013925-CoCa – ver 1.0
The validity of this certificate is maintained through on-going surveillance audits by the
IECQ CB issuing this certificate. This Attestation does not replace the regulatory EU Declaration of Conformity (DoC) and does not
This Certificate of Conformity may be suspended or withdrawn in accordance with the allow for CE marking. After preparation of the necessary documentation and establishing compliance
Rules of Procedure of the IECQ System and its Schemes. to requirements of all applicable directives, the manufacturer may sign a DoC and apply the CE
This certificate and any schedule(s) may only be reproduced in full.
marking. The DoC is issued under the sole responsibility of the manufacturer.
This certificate is not transferable and remains the property of the issuing IECQ CB.
The Status and authenticity of this certificate may be verified by visiting www.iecq.org
T?V S?D Product Service GmbH • Ridlerstra?e 65 • 80339 Munich • Germany
-- Attached Translation: - None -- IECQ-H Rev. 9.0 EN
IECQ QC 080000:2017 Hazardous Product-Related Compliance Certificates
Substance Process Management
System Certification
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Delivering High-Quality Services
Guided by our core corporate values, Zhongji InnoLight adheres to the service philosophy of "Innovation, Speed, Discipline, and
Teamwork," and remains committed to providing clients with high-value, high-quality products and services.
Innovation Speed
We continuously monitor client feedback and evolving The Company maintains a professional and efficient client
market demand while increasing investment in technology service team with extensive industry knowledge and
research and development to enhance the technological specialized expertise. This team enables us to respond quickly
sophistication and value-added of our products. At the to client needs and provide accurate and effective solutions.
same time, we emphasize technological innovation and the
commercialization of research outcomes by applying new
technologies to our products to strengthen competitiveness.
Client Service
Philosophy
Discipline Teamwork
We consistently place client needs and satisfaction at the We maintain a professional and efficient client service team
forefront, ensuring that our products meet industry standards that works collaboratively through effective coordination and
and client requirements while striving to deliver the highest- communication to resolve client issues and improve service
quality products and services. efficiency.
Product Delivery
Zhongji InnoLight has established a series of internal policies and procedures, including the Management Procedures for Sales Forecasts
and Delivery Schedules, Management Procedures for Client Development and Communications, Client Requirements and Contract
Review Procedures , and Outbound Logistics Operation Process . These policies and procedures are designed to ensure both the speed
and quality of product delivery.
Mid- to Long-Term After Clients Place During the Provision of
Product Delivery
Forecast Management Formal Orders Product Services
Based on market demand We strictly follow the Client The Company standardizes Internally, we strictly follow
insights and internal planning, Requirements and Contract shipment and logistics the Management Procedures
Zhongji InnoLight updates Review Procedures to operation processes and for Client Development and
the rolling six-month sales accurately understand client implements logistics Communications to coordinate
forecasts on a monthly basis for requirements and expectations performance assessments and communicate with clients.
domestic sales. We coordinate and ensure that product to ensure products are Whenever possible, written
across internal departments to standards fully meet client delivered to clients communication such as email
arrange material preparation, requirement. safely and efficiently, is used to ensure accurate and
capacity planning, safety stock thereby enhancing client comprehensive understanding
establishment, and production satisfaction. of client requirements related
scheduling. This approach to our products and services.
enables dynamic alignment
with market demand and rapid
response to client needs.
Processes to Ensure Product Delivery Speed and Quality
Zhongji InnoLight classifies and analyzes client feedback issues and coordinates across departments to respond proactively to client
requests. We address various issues and system failures encountered by clients to ensure the stable operation of the client systems.
Through these efforts, we provide comprehensive, timely, and well-structured after-sales services, minimizing client concerns and
reducing operational risks to the greatest extent possible.
The Company has established comprehensive procedural documentation defining the handling of RMA and client complaints,
supported by dedicated systems that facilitate the related business processes. Client complaints are categorized into three levels based
on severity—critical, major, and minor—with corresponding response times assigned to each level.
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
When clients identify product issues, they may submit a return request to the Company. We analyze product issues in accordance with
the Operating Procedures for Client Complaints and RMA Returns to ensure that client feedback is addressed promptly and effectively
while maintaining transparent and constructive communication. If defective products are confirmed, we promptly provide replacement
products and issue a corresponding analysis report.
Client Complaint Handling Process
Providing
Semi-
samples End-face Report
inspection
destructive Issue closure
and related preparation Report
Appearance Functional analysis Destructive
information delivery to
inspection testing analysis
client
RMA Return Process
The customer discovers Send back samplesof Re-examine the
Result?
any defect defective products defective products
Issue an RMA# to the
Return defective Yes No
client, and take back the
products
defective products
Receive the detective
products and re-deliver
the products
Make clarifications with
Replace the products
the customer
Analyze the defect and
take corrective actions
Client Satisfaction
Zhongji InnoLight consistently prioritizes client needs and satisfaction. We regularly collect client feedback to drive continuous
improvement and optimization, ensuring that client requirements are fully met. The Company has established the Client Satisfaction
Survey Procedure and conducts annual surveys covering five major areas: product quality, service, sales service quality and pricing,
delivery, and green products.
Metrics and Targets
Quality Objectives
Through continuous quality improvement, Zhongji InnoLight aims to enhance overall competitiveness and capture market
share, striving to become a high-quality benchmark enterprise in the optical module industry.
By implementing a comprehensive quality management system throughout the product life cycle, maintaining efficient client demand
response processes, and operating a systematic closed-loop mechanism for after-sales issues, the Company strives to achieve our
quality, delivery, and service objectives.
During the reporting period
The Company achieved a
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Responsible Supply Chain
Zhongji InnoLight attaches great importance to the key role of supply chain management in the sustainable development of the
enterprise. We integrate ESG concepts into the entire life cycle management of the supply chain. By improving the governance structure,
clarifying the strategic direction, systematically identifying risks and opportunities, and advancing the construction of a responsible
supply chain with quantified metrics and phased targets, we foster synergistic development and value co-creation upstream and
downstream of the industrial chain.
Governance
The Board of Directors bears the ultimate supervisory responsibility for the Company's responsible supply chain management,
supervising and guiding supply chain-related environmental, social, and compliance risks and opportunities from the strategic and
governance levels. The Procurement Committee (with the coordinated participation of the Economic Planning Committee) reviews and
makes decisions on major issues related to the Company's procurement and supply chain management. It coordinates the Economic
Planning Committee, procurement execution departments, and relevant functional departments to drive the realization of responsible
supply chain management goals.
Strategy
Exercise strict quality control at the source, grow together with suppliers, emphasize risk management
Supplier Quality
and preventive control, build mutually beneficial partnerships, and implement comprehensive quality
Management
management.
Philosophy
Zhongji InnoLight prioritizes supply chain strategy optimization as a key annual innitiative. By formulating and continuously
updating the Supply Chain Risk and Opportunity Analysis Table , we systematically identify and manage supply chain-related risks
and opportunities at a strategic level. Through proactive planning, critical resource securing, and deepened partnerships, we have
built a more resilient supply chain system, further enhancing the Company's rapid perception of market changes, agile response to
uncertainties, and efficient cross-system collaboration capabilities.
Risk Description Period Response Measures
Uncertainties in suppliers' product Establish a qualified supplier evaluation procedure;
quality, delivery capabilities, and implement hierarchical supplier management;
Supplier
performance stability may affect Short- to formulate green substance management and
Qualification and
normal production, service quality, Medium-term evaluation specifications; strengthen supplier
Delivery Risks
and client delivery. management through regular performance
assessments and other methods.
The uneven management levels of some Incorporate environmental and social responsibility
Environmental and suppliers in environmental protection, requirements into supplier management; conduct
Social Responsibility labor employment, occupational health Medium term evaluations through questionnaires and document
Risks and safety may trigger compliance or reviews; promote rectification and continuous
reputation risks. improvement for identified issues.
Factors such as changes in the external Identify key suppliers and key materials;
environment and high supplier moderately promote supplier diversification;
Supply Chain
concentration may lead to disruptions Medium term strengthen supply chain collaboration and
Stability Risks
in the supply of key materials or information communication to improve supply
services. chain resilience.
Suppliers' misconduct may be Strengthen the requirements of the Supplier Code
Reputation and transmitted through the supply chain, Medium- to of Conduct; enhance supply chain transparency;
Brand Risks negatively impacting the Company's Long-term reduce potential reputation risks through
brand image and market trust. continuous communication and supervision.
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Opportunity Description Period Response Measures
Standardize procurement processes and Systematically integrate ESG requirements
Improvement
improve the supplier management system into procurement and supplier management
of Supply Chain
through the construction of a responsible Medium term processes; continuously optimize policies
Management
supply chain, enhancing overall operational and execution mechanisms.
Capabilities
efficiency and management level.
Promote the improvement of suppliers' Conduct supplier communication and training;
Synergistic
management levels through capacity encourage suppliers to continuously improve
Development with Long term
building and communication to achieve their environmental and social responsibility
Suppliers
long-term cooperation and win-win results. performance.
Impact, Risk and Opportunity Management
The identification and management of impacts, risks, and opportunities are key to ensuring the robust operation of responsible supply chain
management. Focusing on key areas such as supplier quality management, transparent procurement, restricted use of hazardous substances,
social responsibility, and conflict minerals management, Zhongji InnoLight continuously improves its systems and processes to promote
standardized supply chain operations and the effective implementation of responsibility management requirements.
Supplier Management
Zhongji InnoLight continuously refines its full-lifecycle supplier management mechanism, establishing a closed-loop management system
that encompasses onboarding screening, process reviews, and performance evaluations. The Company has formulated the Supplier Social
Responsibility Management Procedure . During new supplier onboarding audits, we strictly categorize suppliers into low-, medium-, and high-
risk tiers. We conduct on-site audits for high-risk suppliers and implement annual audits for all categories of qualified suppliers. The annual
performance evaluation for low-risk suppliers is conducted in accordance with the Qualified Supplier Management Procedure . In addition,
the Company conducts regular business ethics audits on suppliers to continuously elevate labor management standards within the supply
chain. In 2025, the Company's supplier audit dimensions integrated ISO 19011 and ESG requirements, covering four major modules: Quality
Systems, Process Control, Business Ethics, and Sustainability. The audit scope was also extended to select key Tier 2 suppliers. Implementing
penetrative audits in reference to the Supplier Quality Management Operation Specification , the Company focuses on verifying suppliers'
Process Capability Index (CPK), corrective action closure rates, and the application of error-proofing technologies. Simultaneously, we
emphasize the establishment of anti-corruption systems, intellectual property protection, and conflict minerals traceability mechanisms.
In terms of sustainability, guided by the principle of Tier-n transparency, the Company verifies suppliers' carbon emissions data and the
proportion of renewable materials used. This effectively identifies deep-tier supply chain disruptions and compliance risks, supporting the
Company in meeting relevant European Union (EU) market access requirements.
The Company requires suppliers to comply with applicable minimum wage laws and regulations in the countries or regions in which they
operate and encourages them to progressively align with living wage standards. The Company will, through supplier evaluations, audits, and
training programs, promote the improvement of suppliers' compensation management systems to ensure that employees receive fair and
reasonable remuneration.
In addition, the Company actively promotes localized procurement to enhance the flexibility and resilience of the regional supply chain,
reduce reliance on cross-border logistics, and decrease process carbon emissions, laying a solid foundation for the localized operation of
overseas production bases and the construction of a sustainable supply chain.
Case Localized Procurement Project for Packaging Materials in Thailand
To address the issues of long supply cycles, high logistics costs, and inventory pressure resulting from the Thailand factory's
reliance on domestic allocation for packaging materials, TeraHop Thailand systematically advanced the localized transformation of
packaging material supply. On the one hand, we actively developed high-quality local supplier resources in Thailand; on the other
hand, we encouraged existing domestic suppliers to implement localized footprints in Thailand, continuously improving the regional
supply network. By reconstructing the radiation scope of packaging material supply, the project significantly improved supply chain
response efficiency. The delivery cycle was shortened from 45 days under the "domestic procurement + allocation" model to 30 days
for local delivery, an overall reduction of 15 days. Meanwhile, comprehensive procurement costs (including logistics and tariffs) were
reduced by 40%, demonstrating obvious cost reduction and efficiency enhancement.
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Supplier Quality Management
During the reporting period
Zhongji InnoLight formulates the Supplier Quality Management Operation Specification and signs
the Supplier Quality Assurance Agreement with suppliers to conduct effective quality management.
The Company conducts monthly, quarterly, and annual quality performance assessments of
suppliers across multiple dimensions, such as incoming batch pass rate, incoming defect rate,
online quality issues, timeliness and effectiveness of responses to quality issues, client complaints,
and key events. Based on the performance assessment scores, suppliers are classified into quality
categories, and targeted management measures are formulated.
At the same time, the Company regularly arranges on-site audits and conducts ad-hoc assessments The Company expanded
and counseling when suppliers introduce new processes or materials, or when major quality the scope of supplier quality
issues occur. This ensures that suppliers' manufacturing processes remain stable and controllable, training to the entire supply
enabling them to continuously provide products that meet the Company's requirements and
guarantee product quality.
chain, achieving 100%
coverage of mass-production
During the reporting period, the Company expanded the scope of supplier quality training to the suppliers
entire supply chain, achieving 100% coverage of mass-production suppliers. It also mandated Tier
quality management deep into the supply chain.
Case Annual Training From Compliance to Competitiveness: A Zero-Defect Quality Culture
During the reporting period, Zhongji InnoLight conducted annual supplier quality training centered on the characteristics of the
optical module industry and IPC compliance requirements. The training introduced practical instruction on blockchain traceability
and AI risk early warning platforms to enhance suppliers' data transparency and risk identification capabilities. The training received
positive feedback from over 100 suppliers and resolved more than 20 supply chain pain points on-site, effectively driving the supply
chain's upgrade from "passive compliance" to "quality competitiveness-driven."
During the reporting period
The training received positive feedback
from over 100 suppliers
resolved more than 20 supply chain
pain points on-site
Supplier Quality Management Training
Transparent Procurement
During the reporting period
A fair, impartial, and integrity-driven business environment is the foundation of market economy
cooperation. Zhongji InnoLight is committed to establishing healthy cooperative relationships
with all parties based on trust, honesty, candor, and integrity, creating and maintaining a healthy
business environment. The Company signs the Honesty and Integrity Agreement with suppliers to
resolutely resist commercial bribery, unfair competition, and commercial fraud.
The Company uniformly integrates the procurement plans of all departments into the SRM system
for management, enabling timely review of inventory demands, procurement progress, and
supplier information. The system provides supplier performance tracking and analysis, which suppliers signed the Honesty and
allows for better evaluation and screening of suppliers, facilitating more strategic and data-driven Integrity Agreement
procurement decisions. This further enhances the transparency of supply chain management and
ensures that procurement meets sustainable development goals.
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
SRM System Functional Module
Sourcing Invoice Non-produc-
AVL PO JIT ASN Performance
and SQM Reception Reconciliation tionline
APL Management Management Management Management
Bidding & Payment Procurement
SRM Platform
Inquiry and Order Outsourced Document Financial
Bidding Shared
Quotation Management Processing Distribution
Platform
Centralized
ASN Recconciliation Invoicing
JIT Management Purchasing acrass
Management Managemernt Management
multiple factories
Purchase Outsourcedraw
Supplier Main Quota Contract
Information materials inventory
Data Management Ledger
Benchmark Sheet management
Supplier
Supplier Audit ECN/PCN AVL/APL Online Feedback
Performance
SAP
Green Product Mineral
Management Management
Sco e: Direct procurement, Indirect procurement
(equipment, infrastructure and administration)
SAP WMS IQC OA I-cord S stems: SAP, SRM, WMS, IQC, OA, I-cord,FiN system
Supplier Restricted Hazardous Substances Management
Based on domestic and foreign regulations and standards related to restricted substances such as the Administrative Measures for the Control
of Pollution Caused by Electronic Information Products , and combined with the Company's business operation practices, Zhongji InnoLight
formulates and improves management systems such as the InnoLight Specification for Restriction of Hazardous Substances to strictly control
the use of restricted substances in the product manufacturing process. The Company requires that the products, components, auxiliary
materials, semi-finished products, packaging materials, and additives in the production process provided by suppliers all comply with the
Company's green and environmental protection product specifications. By signing documents such as the Restricted Use of Hazardous
Substances Agreement and the Declaration of Non-use of Environmentally Related Substances in Non-BOM Auxiliary Materials with suppliers,
we strengthen the compliance management of hazardous substances.
The Company formulates the New Supplier Evaluation Procedure, which explicitly incorporates the hazardous substance management
system into the assessment scope during the introduction and procurement stages of new suppliers. It requires suppliers to introduce a
"full material declaration" to control the use of hazardous substances at the source of materials, boosting the reduction and substitution
of hazardous substances in the industrial chain. The Company identifies and evaluates relevant control risks, and implements hierarchical
management of suppliers' hazardous substance risks based on different material categories, classifying them into high, medium, and low
risk levels to implement differentiated management and continuous tracking. Meanwhile, the Company has built the SRM-GP management
system (GPM), significantly improving the transparency of full substance information disclosure in the supply chain, enhancing the efficiency
of environmental compliance verification, and ensuring the effectiveness of hazardous substance control throughout the full product life
cycle. During the reporting period, the Company did not experience any unqualified incidents caused by the provision and use of products
and services violating relevant regulations on hazardous substance control.
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Social Responsibility Management and Conflict Minerals
Supplier Social Responsibility Management
Taking "honesty, integrity, self-discipline, and assuming social responsibility" as its management policy, Zhongji InnoLight formulates
and implements the Supplier Social Responsibility Management Procedure and signs the Supplier Corporate Social Responsibility
Agreement with suppliers. Based on the RBA standards and with reference to the OECD Due Diligence Guidance and the IPC-1401
CSR Management System Standard , the Company identifies and evaluates actual and potential adverse social impacts related to its
operations, products, or services. We drive suppliers to improve their social responsibility management levels and proactively fulfill their
social responsibilities.
The Company has established a systematic Supplier Corporate Social Responsibility (CSR) Management Mechanism, requiring suppliers
to conduct self-assessment questionnaires. Adopting the Supplier CSR Audit Check List , the Company performs both admission and
annual audits on supplier performance across domains including labor, occupational health and safety (OHS), environment, business
ethics, management systems, and information security. The evaluation conducts quantitative scoring across multiple dimensions—
namely institutional framework, implementation status, and documentary evidence—to categorize suppliers into different risk tiers.
This forms a risk-based hierarchical management system to identify and assess CSR risks for various supplier categories and formulate
differentiated management measures.
Regarding the evaluation metric system, the Company has integrated ESG dimensions into traditional commercial indicators such as
price and quality. Particular focus is placed on labor management issues, including labor compliance (e.g., prohibition of child and
forced labor), protection of employee rights (e.g., minimum wage and working hour management), OHS management capabilities,
and business ethics. Through CSR assessments and performance scoring, the Company utilizes labor management performance as
a critical criterion for supplier admission, tiering, and ongoing partnership. Priority is given to high-performing suppliers, while those
with identified risks are required to implement corrective actions or face cooperation restrictions, thereby continuously driving the ESG
performance of the entire supply chain.
During the reporting period
The proportion of suppliers complying with The percentage of suppliers screened The percentage of suppliers screened
Zhongji InnoLight's Supplier Code of Conduct was using environmental criteria was using social criteria was
The Company has established a supply chain grievance and communication mechanism in local languages related to labor
management, allowing supplier employees and stakeholders to raise concerns through multiple channels, including anonymous
email reporting(domestic:anti_fraud@innolight.com; overseas: anti_fraud@terahop.com) and hotline(+86 0512-86669288-8999). The
Company is committed to maintaining strict confidentiality of all reported information and has implemented independent investigation
and resolution procedures to ensure that grievances are addressed in a timely and fair manner.
In 2025, the Company conducted supplier training programs on labor rights, promoting the UN Guiding Principles on Business
and Human Rights, the ILO Core Conventions, and the EU Corporate Sustainability Due Diligence Directive. In addition, systematic
training aligned with the Responsible Business Alliance (RBA) Code of Conduct was delivered, focusing on: forced labor, child labor,
discrimination risk identification and prevention; compliance with working hours and wage requirements; occupational health and
safety management; grievance mechanisms and worker communication channels, among others.
Case Organizing Supplier Conferences to Collaboratively Address Climate Change across the Supply Chain
Zhongji InnoLight promotes collaborative carbon
reduction efforts across the entire supply chain.
We regularly organize supplier conferences, share
practical experiences in carbon reduction, and
jointly set carbon reduction targets with industrial
chain partners. By distributing carbon information
questionnaires and collecting supplier carbon
emission-related data, the Company conducts
normalized tracking of the implementation
effectiveness of their carbon reduction measures. Zhongji InnoLight Supplier ESG Training Conference
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Supplier Conflict Minerals Management
As a responsible corporate citizen, Zhongji InnoLight complies with the UN Guiding Principles on Business and Human Rights ,
proactively fulfills its social responsibilities, respects human rights, and continuously pays attention to conflict minerals issues. We are
committed to conducting detailed supply chain investigations to ensure that metal materials such as tin (Sn), tantalum (Ta), tungsten (W),
gold (Au), and cobalt (Co) are not sourced from mines controlled by armed groups in the Democratic Republic of the Congo (DRC) and its
adjoining countries.The Company signs the Declaration of Conflict-Free Minerals with 100% of its suppliers to ensure that all company
products comply with the RBA standards and the relevant provisions of the OECD Due Diligence Guidance for Responsible Supply Chains
of Minerals from Conflict-Affected and High-Risk Areas .
During the introduction of new suppliers, updates to conflict minerals regulations, and annual audits, the Company requires suppliers
to use the Conflict Minerals Reporting Template (CMRT) of the Responsible Minerals Initiative (RMI) to provide information on smelters
or refiners, in order to trace the source of metals, strengthen risk identification, and conduct tracking and continuous monitoring. The
audit checklist covers all direct suppliers of important raw materials (excluding auxiliary consumables). Conflict minerals such as tin (Sn),
tantalum (Ta), tungsten (W), gold (Au), and cobalt (Co) can be 100% traced back to their origins. If a supplier is found to be using conflict
minerals, the Company will immediately terminate the cooperative relationship with them.
The Company formulates and implements an adequate and effective "Conflict Minerals Supply Chain Policy and Management System."
Through the "Mineral Origin Management" functional module in the SRM system, we collect mineral usage information from all suppliers. If it
is discovered that a supplier's smelter uses conflict minerals, all relevant documents under that smelter ID will be rejected.
Zhongji InnoLight Conflict-Free Minerals Management Policy (see official website for details)
Not adopt, distribute and incorporate in contracts and/or agreements with suppliers sourcing of conflict mineral(s).
Work with our suppliers to ensure that products do not originate from mining areas controlled by armed groups in the DRC and
surrounding areas by: (a) encouraging our suppliers to join the Conflict-Free Smelter Program list administered by the Electronic Industry
Citizenship Coalition ("EICC") and the Global Enabling Sustainability Initiative ("GeSI"), and to purchase minerals from the Conflict-Free
Smelter Program Compliant Smelter List certified as conflict-free by an independent auditor; and (b) auditing our suppliers periodically.
Maintain the Management System in an effective way to avoid trading, refining and handling conflict materials that directly or indirectly
finance or benefit armed groupsfrom conflict-affected regions.
Continue to encourage our employees to understand conflict-free policy.
The Company conducts country-of-origin traceability for conflict minerals used in its products. The identified potential countries of
origin are as follows:
Gold Gold originates from the Philippines, Australia, Mexico, Sweden, Czechia, Belgium, Germany, Singapore, etc.
Nickel Nickel originates from China.
Tantalum originates from China, Brazil, Japan, Germany, Thailand, India, the United States, Mexico, Estonia,
Tantalum
Kazakhstan, etc.
Tin originates from the United States, China, Poland, Thailand, Indonesia, Bolivia, Peru, Brazil, Belgium, Japan,
Tin
Australia, Spain, Malaysia, the Philippines, etc.
Tungsten Tungsten originates from Vietnam, the Philippines, China, Brazil, Germany, the United States, Austria, Japan,etc.
The Company has established a clear target for conflict minerals, requiring that all smelters and refiners in its suppliers' mineral supply
chains be compliant with recognized certification schemes, such as the Responsible Minerals Initiative (RMI) and the London Bullion
Market Association (LBMA).
Official website link for the Conflict-Free Mineral Management Policy:
https://www.zj-InnoLight.com/public/static/ajaxuplode/uploadfile/society/1742361903157766.pdf
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Metrics and Targets
To continuously improve the effectiveness of responsible supply chain management, the Company formulates supplier management
concepts and targets, establishes and improves the indicator system related to supplier management, and systematically tracks and evaluates
suppliers' ESG management performance.
Metrics Unit 2025 Supplier Quality Management Objectives
Total number of suppliers Number 691
——Suppliers in Chinese Mainland Number 574 Ensuring the stability of supplier quality、
——Suppliers in Hong Kong, Macao, and Taiwan Number 74 Enhancing supplier quality capabilities、
Reducing quality risks and costs、Building
——Overseas suppliers Number 43
long-term cooperative relationships、
Proportion of localized procurement % 79.55
Achieving continuous improvement and
Number of sustainable-certified suppliers Number 691 innovation
Proportion of sustainable-certified suppliers % 100
Data Security and Client Privacy
With the continuous advancement of digitization and informatization, data security and client privacy protection have become key
issues for corporate sustainable development. By establishing a sound data security management system and strengthening privacy
protection measures, Zhongji InnoLight effectively mitigates legal and operational risks, enhances client trust, and supports the long-
term stable and sustainable development of the enterprise.
Information Security
Respond quickly to demands to ensure information security
Management Policy Refine security measures to strengthen information technology
Governance
Terms o e erence, Tas s, and O jecti es
Board of Directors Reviewing information security management Monitoring the handling of significant data
policies, systems, and processes； breaches or non-compliance incidents.
Organi ation Terms o e erence, Tas s, and O jecti es
Management General Manager, Information Security Group Implementing and supervising information
Leader (Management Representative) security strategies and their execution.
Organi ation Terms o e erence, Tas s
Execution Information Security Group Heads of various projects and departments,
IT Department, and other functional
departments, etc.
Coordinating the promotion and Implementing system documents, records,
implementation of information security internal audits, management reviews, and
strategies, handling reporting and emergency system improvements; executing security
escalation, and reporting on overall execution. measures and reporting execution status.
Definition of sustainable-certified suppliers: Suppliers that have obtained relevant certifications such as ISO 14001 (Environmental Management System), ISO
Certification, etc. Any supplier that has passed at least one of these certifications is regarded as a "sustainable-certified supplier" .
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Strategy
Zhongji InnoLight focuses on data security and client privacy protection, systematically identifying the major risks and potential
opportunities encountered in its business operations. This provides a key basis for the Company to refine its management mechanisms,
optimize resource allocation, and support management decision-making.
Risk Description Period Response Measures
During business operations and Improve information security management
information system functioning, network systems; strengthen network security
Data Breach and
attacks, system vulnerabilities, or Short- to protection and system permission
Cybersecurity
improper internal management may lead Medium-term management; regularly conduct security
Risks
to the leakage of client information or inspections and risk assessments.
business data.
Failure to comply with applicable Continuously track legal and regulatory
Compliance data protection and privacy laws and requirements for data protection;
and Regulatory regulations during data collection, Medium term improve data classification, grading, and
Risks storage, usage, and transmission may compliance management processes;
result in compliance risks. strengthen compliance reviews.
Opportunity Description Period Response Measures
Robust data security and privacy Continuously improve data security and
Enhancement of
protection management help enhance privacy protection systems; standardize
Client Trust and Medium term
client trust in the Company's products data processing procedures and enhance
Relationships
and services. management transparency.
Systematically advancing data Incorporate data security into the
Improvement
security management helps improve Company's risk management system;
of Compliance
the Company's overall compliance Medium term regularly evaluate management
Capability and
management and internal governance effectiveness and ensure continuous
Governance Level
capabilities. optimization.
Strengthening information system Strengthen information system operation,
security and data management helps maintenance, and security management;
Robust Business
enhance the ability to cope with system Medium term enhance system stability and security.
Operations
disruptions and improves the robustness
of business operations.
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Impact, Risk and Opportunity Management
Zhongji InnoLight has formulated and improved system documents such as the Information Security Risk Identification and
Evaluation Management Procedure . It has established risk assessment methodologies and processes covering the information
security management system as well as business-related information security, legal, and regulatory requirements. It clearly defines
risk acceptance criteria and acceptable levels, and delineates information security responsibilities for each position. Meanwhile,
the Company enhances management efficiency through digital construction and continuously strengthens its information security
management and client privacy protection levels.
Digital Construction
Zhongji InnoLight takes organizational innovation as its guide and data-driven approaches as its lever. Closely focusing on the four key drivers
of "people-driven, functional-driven, process-driven, and data-driven," the Company adheres to an informatization construction philosophy of
"people-oriented, technology-driven, resource sharing, security and control, and continuous innovation." It has established an organizational
system, formulated system documents such as the Manufacturing Informatization KPI Evaluation Specification and Manufacturing Department
Informatization Work Control Specification , and matched informatization construction with high-quality resources including advanced
technologies, data platforms, and professional talents to actively promote the intelligent construction of the Company's manufacturing.
Case Enterprise Audit System Upgrade
Zhongji InnoLight carried out a comprehensive upgrade of its enterprise audit system, introducing digital process management and
systematic control mechanisms to achieve full-process online management of audit planning, execution, rectification, and tracking. The
system upgrade effectively reduced manual operations and repetitive tasks, improving audit efficiency and accuracy. Throughout the
year, it achieved a cumulative labor saving of approximately 4.2 person-years, significantly enhancing internal management efficiency and
resource allocation effectiveness.
Audit System
Report Dashboard
Department Audit Issue Audit Type
Visualiz- Audit Summary Distribution Distribution
Inspection Dashboard
ation
Average Issues per
Score Ranking Audit Dashboard
Person
······ ······
Audit Management
Routine Audit Model Audit Inspection Client Audit
Production Line Model Audit Client Audit Task Progress
Area Inspection
Audit Initiation Initiation Initiation Summary
Process
Control Improvement Improvement Inspection Client Visit
Issue Summary
Submission Submission Improvement Initiation
Improvement Improvement Inspection
Approval Approval Approval
WeCom Notification
Basic
Data
Personnel Department Area Production Line Audit Item & Content Audit Document
Management Management Management Management Management Management
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Information Security Management
Based on its overall business activities and risk characteristics, Zhongji InnoLight
establishes, implements, operates, monitors, reviews, maintains, and improves its
Information Security Management System (ISMS) in accordance with the requirements
of the ISO/IEC 27001:2022 standard. The Company adopts the PDCA (Plan-Do-Check-Act)
continuous improvement model as the core guiding principle throughout its information
security management.
The Company has formulated policy documents such as the Information Security
Management Manual and the Network Security Management Procedure . It also conducts
information security training to raise employees' awareness and enhance their security
prevention consciousness and skills. Furthermore, Zhongji InnoLight continuously
strengthens its information security construction and minimizes potential risks by
conducting annual information security risk assessments, rigorous internal audits,
and emergency incident responses. In 2025, the Company obtained the ISO 27001 ISO 27001 Information Security Management
Information Security Management System certification. System certification
Client Privacy Protection
Zhongji InnoLight attaches great importance to the protection of client privacy and sensitive information, and has established a
comprehensive system of policies and procedures. The Company has formulated regulations such as the Privacy Protection Management
Procedure and the Sensitive Information Management Procedure , which clarify the full-lifecycle management requirements for data
collection, storage, transmission, usage, and destruction to earnestly safeguard client privacy and security. Meanwhile, the Company signs
Data Protection Agreements to define the responsibilities and obligations of all parties in the processes of data processing, storage, and
sharing, strengthening the data security management of external partners.
Metrics and Targets
Zhongji InnoLight defines its informatization goals and establishes information security targets through a comprehensive process that
includes identifying the sources of information security risks, risk treatment, and risk tracking and verification, as well as tracking the
implementation of various processes within the Information Security Management System (ISMS) and holding ad-hoc security review
meetings. Through these efforts, the Company continuously enhances its capabilities in data security and client privacy protection.
General Objectives Objectives of Informatization Construction
Protect the information security of clients and the Enhancing Efficiency and Benefits: Reducing resource
Company (including corporate and private information) waste and improving production efficiency and
management levels through process optimization and
Define the information assets requiring protection and
automation.
their corresponding countermeasures
Strengthening Decision Support: Utilizing data analytics to
Manage information security-related risks, and maintain
provide a scientific basis for decision-makers.
as well as standardize security levels
Promoting Industrial Upgrading: Driving industrial
Standardize the criteria for determining information
structural adjustment and optimization to achieve
security countermeasures
intelligent manufacturing and digital transformation.
Enhance information security awareness among all
Achieving Sustainable Development: Managing resources
Company members
intelligently to reduce environmental burdens and
Ensure strict compliance with applicable laws and rigorous
promote green development.
adherence to internal regulations
Enhancing International Competitiveness: Leveraging
informatization construction to secure a favorable position
in international economic and technological competition.
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Em o ering Talent and ostering a Peo le-
Centric or lace
Employees are the core driving force for the sustainable development of the enterprise. Zhongji InnoLight strictly complies with national laws
and regulations, establishing fair and standardized recruitment and employment systems. The Company continuously strengthens employee
training, provides competitive compensation and benefits, and builds a comprehensive promotion system. This empowers employees to
enhance their capabilities and advance their professional careers, achieving a synergy where personal value and corporate development
grow and progress together. We place great importance on democratic management, ensure smooth communication channels, and fully
guarantee employees' rights to information, participation, and expression. Meanwhile, we continue to strengthen employee health and safety
management, creating a safe, comfortable, and warm working environment to build a compassionate "Zhongji InnoLight Home."
Governance
Governance Structure
Board of Directors Sustainability Committee Functional Departments
(Decision-making) (Management) (Execution)
Overseeing and managing the Ensuring fair and just employment, Implementing employee rights
Company's overall compensation and safeguarding employees' legal rights protection, compensation and benefits,
benefits system. and interests, and optimizing talent career development, training, and
management mechanisms. employee care initiatives.
Reviewing employee development
plans, related policies, and systems, Refining the performance Conducting identification of
and supervising implementation management, compensation, and environmental factors and hazards,
progress. benefits system to create an equal and performing risk assessments.
and healthy working environment.
Identifying, evaluating, and managing Executing EHS targets and
risks and impacts related to Supervising and continuously management schemes, and
production safety and occupational improving the Company's EHS organizing emergency response drills.
health. (Environment, Health, and Safety)
Taking responsibility for the
management system.
investigation and handling of safety
Auditing production safety policies, accidents, specialized operation
targets, management schemes, and training, and employee occupational
related systems, and supervising health protection.
their execution.
Strategy
Zhongji InnoLight proactively identifies the impacts of human resource-related risks and opportunities on the Company's sustainable
development. We evaluate the extent of these impacts and formulate targeted strategies, methodologies, and plans to manage these
"impacts, risks, and opportunities," providing solid human resource support for the enterprise's long-term sustainability.
Employment Philosophy
Greater Challenges, Greater Empowering Employees to
Tailoring Roles to Individual
Rewards Drive Corporate Success
Recruiting Top-tier Talent Strengths; People as the Key
Equal Opportunity and An Integrated Win-Win
Success Factor
Value-Driven Mechanism
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Risk Description Period Response Measures
The advancement of the Company's Formulate international talent cultivation
globalization strategy requires high- strategies and launch global campus
quality talent with an international recruitment programs; increase efforts to
International perspective. A lack of international Medium- to introduce high-level talent from overseas;
Talent Risk management experience or insufficient Long-term and accelerate the nurturing of an
reserves of core technical talent may international perspective among local talent.
hinder global operational efficiency and
the achievement of strategic goals.
The complexity of labor laws and Strengthen cooperation with local
regulations in overseas regions poses vocational education institutions at
Localization
potential risks to the operational Medium- to overseas bases to conduct targeted skills
Operational
efficiency and labor compliance Long-term training; build a compliance management
Risk
management of overseas bases. system that aligns with local cultures to
mitigate employment risks.
Under a global layout, differences in Optimize the compensation and
compensation policies and incentive benefits system to balance fairness and
Compensation
systems may lead to the loss of key Short- to differentiation; implement long-term
and Incentive
talent, affecting the Company's long- Medium-term incentive mechanisms to deeply align
Risk
term development. individual interests with the Company's
long-term growth.
Employee injuries sustained during work Develop a comprehensive occupational
may lead to occupational health and safety health management system; conduct regular
Production
accidents, disrupting production order and Long term EHS training and emergency response
Safety Risk
resulting in compliance liabilities. drills for all employees; implement safety
performance evaluations for all staff.
Opportunity Description Period Response Measures
Benefiting from the explosion of Launch global top-tier talent recruitment
AI computing power, the optical programs; leverage high industry
communication industry has become prosperity to offer market-competitive
Industry
a global technological focus. The Medium- to compensation; and rapidly expand the
Development
significant increase in industry influence Long-term talent reserves for key technical positions.
Dividends
provides the Company with an advantage
in attracting top university graduates and
high-end talent from other sectors.
As the Company deepens its global Provide international career planning
Global layout, employees have more for potential employees and cultivate
Perspective opportunities to participate in versatile management talent with global
Long term
Development international projects, helping them competence.
Opportunities broaden their international horizons and
enhance cross-cultural competencies.
Upgrading from mere "injury prevention" Introduce Employee Assistance Programs
to "comprehensive health and well- with a focus on mental health; establish
Occupational being." By focusing on employees' comprehensive health management
Medium- to
Health and physical and mental health and records and supplementary medical
Long-term
Safety work-life balance, the Company benefits; and organize diverse cultural and
enhances organizational cohesion and recreational activities.
engagement.
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Impact, Risk and Opportunity Management
Zhongji InnoLight's talent reserve strategy is a dedicated human resource plan based on long-term corporate development planning,
centered on core business needs and future strategic layouts. The Company has established diversified recruitment channels, built
talent pools and management platforms, and provided competitive compensation and benefit policies. We prioritize employee care and
strive to provide a supportive and friendly working environment for all staff.
Recruitment and Employment
The Company strictly complies with the Labor Law of the People's Republic of China, the Labor Contract Law of the People's Republic of
China , and other relevant laws and regulations in the jurisdictions where we operate. We adhere to international principles such as the
International Labour Organization (ILO) Conventions and the United Nations Guiding Principles on Business and Human Rights (UNGPs) .
We have formulated policies and systems, including the Employee Handbook , to clearly regulate recruitment and employment systems
and processes. We safeguard human rights, treat and respect every candidate fairly, focus on their comprehensive capabilities, and
recruit the best-qualified individuals based on job responsibilities and requirements.
We resolutely oppose any form of employment discrimination and workplace harassment, fully respecting the diversity of our global
workforce. The Company adheres to the values of equality and inclusion, striving to create a diverse, relaxed, and harmonious workplace
environment. We oppose discrimination in any form, ensuring that no employee is treated differently based on factors such as gender,
age, ethnicity, race, physical or mental disability, educational background, nationality, or religious belief. Religious activity rooms are
provided to offer a diverse communication platform for employees.
To strictly comply with national and regional laws and regulations and meet the RBA requirements for the protection of young workers,
the Company has formulated the Management Regulations on Child Labor and Underage Workers . During recruitment, we strictly
inspect candidates' identification documents and verify identity information, including age, physical features, address, ID number,
and educational background, to eliminate child labor incidents caused by oversight or the fraudulent use of documents. In the current
year, Zhongji InnoLight recorded zero reported incidents related to child labor, forced labor, employment discrimination, gender
discrimination, or workplace harassment.
The Company attaches great importance to talent introduction and has formulated system documents such as the Human Resource
Management Procedure to meet the talent demands arising from its long-term strategic layout and the rapid development of the
industry. We aim to improve the matching efficiency between positions and talent to ensure a steady supply of human resources. We
have established an internal recommendation mechanism, standardized the re-employment process, and increased internal referral
bonuses to improve talent retention rates. In 2025, Zhongji InnoLight launched its Global Campus Recruitment Program, continuously
strengthening its workforce to provide talent support for the Company's rapid growth. During the reporting period, the employee
voluntary turnover rate was 5.8%.
Diversified Talent Recruitment Channels
Employee Referral Program Online
Local Job Fairs Campus Recruitment
with Talent Scout Awards Recruitment
Employee voluntary turnover rate: In this report, the employee voluntary turnover rate only includes indirect personnel and excludes employees who leave
during their probationary period.
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Professional Development and Training
With an international orientation and to align with the Company's global development pace, Zhongji InnoLight has always been
committed to building a "practice-oriented" talent cultivation system. We continuously increase training efforts for management,
professional, and technical talents, enhancing the forward-looking nature of talent cultivation to boost core competitiveness. This
supports business development across all sectors, striving for a win-win outcome where employee capability growth and corporate
development complement each other, providing a solid talent guarantee for the Company's endeavors.
Employee Training
Zhongji InnoLight has established a training system with the vision of "building cultural identity and driving organizational innovation,"
structured around job competency requirements, key organizational goals, business challenges, and certification system requirements. The
system integrates internal and external trainer resources and leverages the "Chuangxiang" E-learning platform. It operates under a unified
framework following a "Plan-Do-Effect-Filing" closed-loop model, allowing various operating sites to adjust resources and projects as needed.
The curriculum covers professional literacy, technical skills, leadership, and management capabilities, reaching new employees as well as
technical, professional, and management tracks. These are implemented through flagship programs such as the "Xinnovation Program",
Mini-EMBA, and "Shuguang Class". Supported by a course value classification and a point-based incentive system, the framework effectively
facilitates employee capability enhancement and organizational business growth.
InnoLight Training System
Build Cultural Alignment,
Drive Organizational Innovation
Job Competency Organizational Key Current Business Certification System
Requirements Objectives Challenges Requirements
Internal Instructors: Sharing Mini-EMBA
Management Training
internal knowledge, skills,
and experience to maximize
Jinfeng Program – Ruixue Program –
Instructors
organizational value.
Senior Management Director-level
Training Management Training
External Instructors: Breaking
internal limitations and learning
from high-quality external Chunlei Program – Jiaoyang Program –
training resources. New Leader Training Team Leader Training
Enabling Culture
Typical Projects
Value Realization
Resources
Professional Competency
On-the-Job Training
Training: Corporate culture, Department-demand Professional Training
systems, professional
mindset, communication and
collaboration. ISO/RB System InnoLight Working
Courses Methodology
Courses
Professional Skills Training:
Job-related expertise and
operational skill development.
New Employees
Xinnovation Program: Shuguang Class:
Onboarding for Onboarding for
Leadership & Management
Campus Recruits Experienced Hires
Capability Training: Enhancing
leadership and team
management capabilities. DL Program: New Hire Training
Operation
Process
Plan Do Effect Filing
Platform & System:Innolight E-Learning Platform &Training Management System & Annual Training Plan & Training Credit System
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
The Company formulates annual training plans and ensures their implementation through five key measures: aligning with business
needs to identify requirements; setting measurable goals and planning blended learning (online micro-courses, offline workshops, and
on-the-job practice); establishing standardized operational processes; ensuring training effectiveness through mentorship, systematic
management, and assessment milestones; and utilizing platform data analytics and feedback mechanisms to continuously optimize
course interaction and completion rates. Meanwhile, comprehensive succession planning and development plans are established for
different levels, with leadership-related training available to all employees.
In 2025, the Company built a diversified empowerment system featuring "Online Platforms + Offline Lecturing + Mentorship," established
a high-quality training resource library, and advanced key projects such as the Mini-EMBA and "Xinnovation Program", achieving full
online management of the training process.
During the reporting period
Over 1,000 training sessions 100% employee 98% satisfaction
were conducted coverage rate rate for offline training
Building the "Chuangxiang E-learning Platform" to Achieve Full-Coverage
Training and Development Support from Junior to Senior Staff
Case
Zhongji InnoLight has established a training and education platform based on the "Chuangxiang E-learning Platform," covering all
employees including new hires, technical tracks, professional tracks, and management tracks, forming a multi-level comprehensive
training plan. Management training programs such as the "Chunlei Class," "Jiaoyang Class," "Jinfeng Class," "Ruixue Class," and the Mini-
EMBA project are tailored for different management levels. Additionally, training programs like the "Xinnovation Program" and "Shuguang
Class" are designed for new employees across various positions. Through the Plan-Do-Effect-Filing closed-loop operation and a training
point system, the Company achieves full-coverage training and development support from junior to senior levels.
Mini-EMBA Xinnovation Program
Chunlei Class Shuguang Class
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Role-Specific Training
Relying on four major inputs—"job competency requirements, key organizational goals, current business issues, and certification
system requirements", the Company has structured a curriculum system covering professional literacy, technical skills, and leadership/
management capabilities. Through annual training needs surveys and analyses, we tailor training plans for employees in different roles.
The training formats integrate blended learning paths, including online micro-courses, offline workshops, and on-the-job practice.
The content prioritizes internal knowledge transfer (internal expert sharing and case studies), supplemented by high-quality external
courses. Furthermore, various departments develop micro-courses to meet employees' diverse needs, achieving precise empowerment
for employees' job responsibilities and roles, thereby enhancing training effectiveness.
Fresh Graduate Training
The Company has tailored the systematic Xinnovation Program for fresh university graduates to attract, cultivate, and retain young
talent. Adopting a blended cultivation model of "Centralized training + Mentorship + Buddy co-coaching + Production base practical
training + Real project practice," we establish a long-term talent pipeline. This facilitates the transition of fresh graduates from students
to professionals, forming a structured and sustainable core talent development system.
Case Hosting the "Xinnovation Program" to Comprehensively Cultivate Fresh Graduates
In July 2025, Zhongji InnoLight hosted the "Xinnovation Program" in batches, with participants comprising the 2025 campus
recruitment fresh graduates. Through a blended model of centralized training, mentorship, and on-the-job practice, the program
helps fresh graduates successfully navigate the campus-to-career transition, enabling them to quickly integrate into and become
competent in their roles.
Zhongji InnoLight "Xinnovation Program"
Degree Programs and Certifications
The Company has established degree programs and certifications for all employees (including full-time and contracted employees).
Specific measures include implementing the "1+X" innovative apprenticeship model ("1" represents an academic degree certificate,
and "X" represents vocational skill level certificates) and collaborating with universities to build a platform for academic and skill
enhancement. Meanwhile, we provide institutional safeguards for professional certifications and skill appraisals that are highly
relevant to job competency requirements and certification systems, such as the On-the-job Certification Assessment Measures . Training
resources are primarily internal, supplemented by external training. Through the Chuangxiang E-learning platform, we achieve online
and offline blended learning, ensuring fair coverage and transparent management of capability development for employees across all
employment types.
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Employee Career Advancement
Company Career Tracks
The Company has established a sound talent promotion ranking system and review workflow
to provide employees with fair, transparent, open, and unobstructed promotion channels. By
formulating institutional documents such as the Human Resource Management Procedure,
Key Position Management Measures , and Employee Reward and Punishment System , we Professional Track Management Track
have refined the promotion framework. Employees are categorized into four professional
tracks, creating tailor-made career development pathways and providing ample room for
Marketing Track Technical Track
career growth. Through regular performance appraisals, employees are provided with clear
promotion criteria, which more effectively motivates them to dedicate themselves to their
roles and drives the mutual development of individuals and the Company.
To help employees achieve career advancement, the Company provides diversified skill
enhancement plans to assist them in gradually taking on more challenging tasks. In 2025, During the reporting period
the Company optimized its promotion evaluation system covering multiple tracks, including
management, professional, and technical. We clarified promotion criteria and standardized review
processes, broadened career development channels, and supported multi-channel promotion
Approximately 30% of
pathways. Furthermore, we deeply linked promotion results with salary adjustment incentives, white-collar employees achieved
forming a positive reinforcement mechanism. During the reporting period, approximately 30% of career progression through
white-collar employees achieved career progression through promotion reviews, providing strong promotion reviews
support for the Company's talent pipeline development and sustainable growth.
Democratic Governance
We are committed to supporting employees in expressing their demands and exercising their rights through multiple channels, ensuring
their voices are heard and respected. To this end, we have established diversified communication mechanisms, including labor unions
and grievance management. Adhering to a people-oriented approach and implementing employee oversight, we strive to build a
democratic, fair, and just management system, collectively fostering a united and harmonious working atmosphere.
To establish harmonious labor relations, safeguard the legitimate rights and interests of employees, and promote corporate
development, Zhongji InnoLight signs collective contracts, establishes labor union systems, and advocates democratic governance in
accordance with the Labor Law of the People's Republic of China , the Labor Contract Law of the People's Republic of China, and the
Trade Union Law of the People's Republic of China , and other applicable laws and regulations in the jurisdictions where we operate.
In addition, to ensure smooth employee complaint channels, guide internal employees to reasonably and effectively utilize internal
complaint tools, and standardize the filing and handling of internal employee complaints, we have formulated the Employee Complaint
and Reporting Handling Procedures.
Across Zhongji InnoLight's global operations, we fully respect employees' freedom of association and the right to collective bargaining.
The Company's Employee One-Stop Service Center regularly hosts reception days to answer employees' questions and handle various
consultations and feedback collection. The labor union holds quarterly meetings, inviting management and union representatives to
actively listen to employees' opinions regarding the Company's welfare policies and the organization of large-scale events.
The Company has formulated the Employee Grievance Management policy to standardize the procedures for internal employee
complaints, reporting, and handling. Simultaneously, we strictly protect the privacy and personal safety of whistleblowers and prohibit
any acts of retaliation, intimidation, or threats. Once verified, such behaviors will be severely penalized. We ensure that employee
complaint channels remain unobstructed, enhancing management's accessibility to employee feedback, and better maintaining a work
environment characterized by open communication and rapid problem resolution.
Diversified Grievance Channels
Tele hone：+86 0512-86669288 Email：hr@innolight.com
O cial eChat cco nt：Anonymous complaints via the "Basic Applications" module；
The Com an s internal comm nication lat orm：Allows employees to submit complaints, suggestions, and inquiries
directly, with responses provided within two business days；
S ggestion o es：Installed in the restrooms on each floor, with letters normally collected every two weeks and public replies
posted regularly on the official WeChat account every month；
Employee Self-Service Q&A Platform, Providing 24/7 service to employees；
Com an e site：https://www.zj-innolight.com
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Zhongji InnoLight places great importance on enhancing employee engagement and a sense of belonging. We regularly utilize the
Gallup Q12 model to conduct employee engagement surveys, gathering employees' views and opinions on their overall development,
teamwork, managerial support, and basic needs. This enables management to promptly adjust and optimize democratic governance,
foster transparent communication and fair decision-making, and improve employee satisfaction. In 2025, the total employee satisfaction
score reached 4.33, surpassing the international 75th percentile of 4.31, representing a 0.01 point increase compared to 2024. The
results indicate that the Company has created a favorable working environment in talent management, which has been recognized by
the majority of employees, effectively achieving the organic integration of human-oriented management and democratic governance.
During the reporting period
The total employee satisfaction surpassing the international
representing a 0.01 point increase
score reached 4.33 75th percentile of 4.31 compared to 2024
Remuneration and Benefits
Employee Remuneration
Based on our global talent strategy, Zhongji InnoLight's Employee Handbook Employee Remuneration Structure
clearly defines the framework for employee remuneration and benefits.
To better attract, motivate, develop, and retain employees, the Company Base Salary + Position Allowance + Performance
has formulated the Remuneration Management Regulations , establishing Bonus + Long-term Equity Incentives
a clear salary structure and an effective incentive mechanism. Adhering to Among these, individual employee performance metrics
the principles of motivation and equity, the Company sets corresponding consist of three components: business performance,
compensation structures for different categories of personnel. Recognizing corporate cultural values, and overall impression. The
that outstanding employees are a crucial driving force for corporate evaluation process incorporates self-assessments,
development, the Company highly values long-term talent incentives and supervisor assessments, and designated peer
implements an employee long-term equity incentive plan. By deeply aligning assessments. The performance appraisal coverage rate is
individual earnings with the Company's long-term value, we effectively 100%, which further enhances the comprehensiveness,
motivate and retain top talent both domestically and abroad, supporting the fairness, and effectiveness of employee evaluations.
robust growth of our transnational business.
Employee Benefits
To align with the needs of global operations, the Company has established a sound and comprehensive benefits management system
covering all employees, offering a diverse range of employee benefits. Building upon the strict fulfillment of localized statutory obligations,
such as paid leave and social insurance mandated by the laws of our various operating locations, we purchase additional commercial illness
and accident insurance for employees and provide annual health check-up services to safeguard their physical well-being. Furthermore, the
Company respects and values the education and upbringing of employees' children. The Employee Handbook details the fully paid maternity
leave available to female employees and the parental leave accessible to both spouses. We have also set up nursing rooms to support female
employees with childcare needs. For employees in Jiangsu and Sichuan provinces, we provide 10 days of parental leave annually until their
child reaches the age of three, supporting them in better accompanying and caring for their young children.
Zhongji InnoLight Employee Benefits System
Statutory social
Subsidies for
Commercial Annual health Year-end Project insurances
high-level
insurance check-ups bonuses bonuses and housing
talent
provident fund
Local
Year-end
Equity household Annual Subsidized Paid annual
salary
incentives registration company trips talent housing leave
adjustments
sponsorship
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
By organizing a variety of events such as birthday parties, special activities, and social gatherings, the Company enriches employees'
lives and demonstrates care, significantly enhancing their sense of belonging and happiness. In 2025, on International Women's Day, the
Company distributed flowers to show appreciation and care for our female employees. We also hold occasional networking events with
other enterprises or universities to build a platform that helps single employees address their dating and marriage needs.
Birthday Celebrations
Through 19 meticulously prepared birthday parties, we created
exclusive and joyful memories for over 900 colleagues.
Special Themed Events
With the theme of“Celebrating the Dual Festivals with Zero
Anxiety,”the Company innovatively launched Mid-Autumn
Festival cultural activities. Held on a rolling basis across various
plant sites in Suzhou and covering both day and night shifts, the
events attracted the participation of over 2,600 employees, with
more than 3,300 items and prizes distributed.
Employee Clubs
The Company has established a diversified club system covering
sports, arts, and other fields, including football, basketball,
dance, and table tennis clubs, catering to the diverse interests of
our employees.
HR Face-to-Face Employee Care Activity InnoLight Taiwan "Family Day" Event
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Health and Safety
Health and Safety Management System
The Company adhered to the occupational health and safety philosophy of "prevention first, legal compliance, people-oriented, and
continuous improvement." With the goals of "reducing annual occupational injuries, preventing fire accidents, and preventing occupational
diseases," we have integrated workplace safety into our corporate culture and constructed a comprehensive safety management system.
Concurrently, we utilize informational and systematic technological means to elevate our safety management level, providing employees with
safe and healthy working and living conditions, and safeguarding the health and safety of employees and relevant stakeholders throughout
our operations and services.
The Company strictly complies with the requirements of relevant laws, regulations, international standards, and conventions. We have
established an occupational health and safety institutional framework encompassing management specifications, emergency response
plans, and corresponding execution procedure documents. This year, all manufacturing sites successfully passed or maintained the ISO 45001
Occupational Health and Safety Management System certification.During the reporting period, the Company did not experience any major or
higher-level occupational safety incidents.
In accordance with relevant EHS policies, the Company has established a dedicated safety and health management body (the EHS
Department) alongside an Environment, Health and Safety (EHS) Committee. The committee comprises members from various departments
and hierarchical levels. It convenes monthly meetings to review and coordinate issues related to the environment, health, and safety, and to
recommend specific directions for execution.
The Company regularly conducts comprehensive, targeted, holiday-specific, and daily on-site workshop inspections. Additionally, we have
developed a hazard reporting system that allows every employee to report hidden dangers via our official WeChat account. During the
reporting period, all identified hazards of various types were successfully rectified, achieving a closure rate of 100%.
During the reporting period
The Company's investment in
workplace safety amounted to
RMB 43.3335 million
personnel
The employee fatality rate was 0
with 123 lost working days due
to work-related injuries
a recordable injury rate per
million hours worked of 0.69
all identified hazards of various types
were successfully rectified, achieving
a closure rate of 100%
ISO 45001 Occupational Health and Safety
Management System Certification
(InnoLight Suzhou, TeraHop Thailand)
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Cultivating Health and Safety Awareness
The Company regularly conducts safety and environmental activities across its plant areas, emphasizing the importance of workplace
safety and employee well-being, and adhering to the principle of "Safety First, People-Oriented." Through video and poster campaigns,
EHS knowledge and skills competitions, and regular employee representative congresses for safety supervision, along with dedicated
EHS feedback desks, we empower employees to actively participate in practical initiatives and integrate more willingly into the
Company's safety culture. To establish and implement a fire, environment, and safety responsibility system, the Company conducts all-
staff responsibility training spanning from top management to frontline employees. Furthermore, all employees sign fire, environment,
and safety target responsibility letters.
The Company attaches great importance to employees' physical health and the prevention of occupational diseases. Through on-site
risk assessments, the formulation of control measures , regular health check-ups, and safety supervision and inspections, we protect
employees from occupational diseases and hazardous factors. All types of machinery and equipment in the Company have passed
equipment safety assessments. Occupational health, safety, and environmental factors are considered from the design stage to achieve
inherent safety protection. Concurrently, we actively provide employees with Personal Protective Equipment (PPE), maximizing our
assurance of a healthy and safe working environment. Meanwhile, by conducting occupational health training and educational activities,
the Company has enhanced employees' awareness of occupational disease prevention and their self-protection capabilities.
All subsidiaries of Zhongji InnoLight have fully implemented employee health and safety training initiatives, conducting categorized
safety training tailored to the specific needs of various functional departments and factory personnel. During the reporting period,
Safety Committee conducted 69 specialized in-person training sessions on occupational health and safety (excluding new employee
onboarding training); these sessions covered topics such as first aid, machinery safety, chemical safety management, fire safety, and
EHS regulations. Furthermore, existing employees complete 8 to 12 hours of various specialized online safety training courses annually
to continuously reinforce safety awareness, achieving a 100% coverage rate for safety training among the workforce.
During the reporting period
Conducted 69 occupational health and safety 100% of new achieving an OHS training coverage
offline training sessions employees receive HSE training rate of 100%
Case Conducting Safety-Themed Activities to Strengthen Employee Health and Safety Awareness
Zhongji InnoLight launches the "Safety and Environment Month" in June and the "Fire Safety Month" in November every year. By
organizing activities such as EHS knowledge and skills competitions, we continuously strengthen employees' environmental, health,
and safety awareness, driving the integration of safety concepts into daily production and work practices.
InnoLight Suzhou Fire Safety Month Competition Jingle Electronic Safety Star Evaluation
Control measures include: improving production processes and facility layouts, purchasing and utilizing protective equipment, providing Personal Protective
Equipment (PPE), and conducting timely maintenance of emergency equipment.
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Case Conducting Health and Safety Training to Enhance Employees' Safety Protection Capabilities
Zhongji InnoLight regularly organizes workplace safety-related training, conducting systematic communication centered on
Standard Operating Procedures (SOPs), risk identification, protection requirements, and emergency response, to continuously
enhance employees' safety knowledge and operational skills. Through routine training, we constantly strengthen employees' safety
awareness and self-protection capabilities, providing a solid guarantee for workplace safety and employee health.
InnoLight Tongling Fire Safety Training TeraHop Thailand First Aid Training Activity
Emergency Drills
The Company continually strengthens its emergency management framework by formulating the Emergency Response and Preparedness
Management Procedure and establishing an Emergency Response Command Center. The command center is composed of a Commander-
in-Chief, a Deputy Commander-in-Chief, and various emergency working groups. Subordinate groups include the rescue and repair group,
cordon and evacuation group, medical rescue group, communication and liaison group, and logistics support group, providing a robust
organizational guarantee for the Company's emergency safety. The Deputy Commander concurrently serves as the on-site commander. When
the Deputy Commander is absent, the highest-ranking official on-site assumes the on-site command responsibilities.
Zhongji InnoLight Emergency
eneral Commander
Drill Organizational Chart
De t Commander
On-site Commander
Emergency Rescue & Security & Medical Communication Logistics Support
Repair Team Evacuation Team Rescue Team & Liaison Team Team
To enhance employees' safety awareness as well as their self-
rescue and mutual assistance capabilities during emergencies,
and to improve the coordination and cooperation among
various departments when handling unexpected incidents while
clarifying their respective roles and responsibilities, the Company
has formulated multiple emergency plans based on different
risk characteristics. These include comprehensive emergency
response plans, specialized contingency plans, and on-site
response plans. Throughout the year, a total of 89 specialized and
Tsuhan Technology Conducting Emergency Evacuation Drills
on-site emergency response drills were conducted.
The data on emergency drills does not include the subsidiaries Pioseed Technology and Jingle Electronic.
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Metrics and Targets
During the reporting period
Zhongji InnoLight adheres to a people-oriented philosophy, establishing a comprehensive
employee appraisal and tracking mechanism. We have set and achieved talent management
targets, putting our employment principles into practice to realize the goal of mutual
The total number of employees was
development and progress between employees and the enterprise. In January, 2026, the
Company was honored as the "2026 Outstanding Employer" by the external platform 51job. 11,625
Our subsidiary, TeraHop Thailand, received the 2025 Excellent Practices Establishment
on Labour Relations and Welfare (National Level) award, marking official recognition of
our overseas labor management excellence.
including 28 employees with disabilities
Employee-Related Quantitative Metrics
The labor contract signing rate reached
By Education
By Gender 572
Level
Unit：Person
The Company employs 225
Unit：Person
individuals from ethnic minorities
Male Master's degree or above Undergraduate accounting for 1.94% of the total
Female College College or below workforce
By Age Group By Function 8,090
Unit：Person Unit：Person
Financial employee
Technical employee
Zhongji InnoLight Honored as the 2026 Outstanding TeraHop Thailand Received the 2025 Excellent Practices Establishment
Employer by 51 Job on Labour Relations and Welfare (National Level) Award
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
l lling Social es onsi ilit and
Contri ting to Comm nit De elo ment
Cultural prosperity and community cohesion are important cornerstones of building a harmonious society, as well as concrete expressions of
corporate gratitude to local communities. Zhongji InnoLight consistently adheres to the social responsibility philosophy of "being passionate
about public welfare and giving back to society." We actively promote the coordinated development of philanthropic endeavors and the
local economy, focus on the well-being of vulnerable groups, and are committed to building a vibrant and compassionate social ecosystem.
The Company has established the Xuzhiguang Volunteer Team, actively advocating the philanthropic concepts of harmonious integration
with society and the environment, and proactively assisting the elderly and students. We enthusiastically organize charitable activities,taking
practical actions to give back to society and enhance social well-being.
InnoLight Tongling actively participates in urban cultural and sports development by sponsoring concerts and sports events to enrich
citizens' lives. It also organizes employee blood donation drives, radiating positive social energy. InnoLight Taiwan is dedicated to promoting
community prosperity, prioritizing the hiring of local talent, organizing blood donation events, and conducting charity sales to provide warm
care for people with disabilities.
During the reporting period, Zhongji InnoLight participated in public welfare activities for a total of 136 hours. There were 531 volunteer
attendances. We actively carried out rural revitalization efforts, benefiting 165 people.
InnoLight Tongling Sponsoring Sports Events InnoLight Tongling Sponsoring the Tongling New Year Concert
Case Gathering Love to Convey Charitable Warmth
In October 2025, InnoLight Taiwan organized two charity sales, raising a total of NT$31,225 in charitable funds. All proceeds were
fully donated to the Zhenshanmei Charity Foundation and the Meihao Sheltered Workshop for philanthropic purposes, including the
care of people with disabilities. These philanthropic achievements have been recognized by our partner foundations.
InnoLight Taiwan Charity Sale Event
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Enhancing o ernance
E ecti eness and Strengthening
the o ndation or S staina ilit
Zhongji InnoLight strictly complies with the Company Law of the People's Republic of China , the Securities Law of the People's
Republic of China , the Code of Corporate Governance for Listed Companies, the Rules Governing the Listing of Stocks on the ChiNext
Market of Shenzhen Stock Exchange , and other applicable laws and regulations in the regions where the Company operates. Guided
by our sustainability objectives, we continuously improve our governance framework and management mechanisms. By establishing
a robust sustainability governance system, we strengthen strategic coordination and risk management, integrating sustainability
considerations into business decision-making. The Company adheres to compliant operations and fair competition, standardizes
business practices, and enhances operational transparency and market trust. We view sustainable governance and responsible
business conduct as key foundations for long-term, stable development.
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
ESG Governance and Compliance-Driven Operations
Stakeholder Engagement for Sustainable Business
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
ES o ernance and Sta eholder Engagement
Corporate Governance
Zhongji InnoLight, in accordance with the Company Law of the People's Republic of China , Securities Law of the People's Republic
of China , and other national laws, regulations, as well as securities regulatory requirements for listed companies, has established
governance documents including the Articles of Association. We continuously optimize our corporate governance framework and
explore the development and improvement of a modern enterprise system. The rights and responsibilities of the General Meeting of
Shareholders, Board of Directors and specialized committees, and management are clearly defined, coordinated, and executed in
respective roles, driving continuous enhancement of corporate governance.
Coporate Governance Structure
The Company treats all shareholders equally and strictly regulates shareholder rights and obligations
Shareholders and while fully safeguarding their legal interests. Measures are in place to prevent abuse of shareholder rights
the General Meeting or managerial dominance that could harm minority investors. In 2025, Zhongji InnoLight held five General
of Shareholders Meeting of Shareholders, during which 19 significant proposals were reviewed and approved.
The election and composition of the Board of Directors strictly comply with applicable laws. The current
board consists of eight directors, including four independent directors and three female directors; 38% of
Board of Directors directors hold doctoral degrees, and female directors account for 38% of the board. In 2025, the Board of
and Specialized Directors convened ten meetings.
Committees
The Board has established four specialized committees—Strategy, Audit, Compensation and Appraisal, and
Nomination—to provide professional advice and recommendations supporting board decision-making.
Investor Relations
Investor Relations Management
Zhongji InnoLight prioritizes the protection of investor rights and interests and strengthens During the reporting period
investor relations management based on four core principles: compliance, equality, proactivity,
and integrity. We have established the Investor Relationship Management System to guide
our practices. Beyond fulfilling statutory disclosure obligations, we proactively expands
communication channels with investors. Through regular announcements, shareholders'
meetings, the corporate website, earnings briefings, the "Interactive Easy" platform, industry Zhongji InnoLight documented
exhibitions, and investor days, we maintain consistent communication with investors and 9 investor relations activities
provide objective, truthful, accurate, and comprehensive information about our operations and
development strategy.
The Company has also implemented the Media Visits and Investor Survey Reception System to enhance information exchange with both
investors and media. In 2025, following the release of periodic reports or during stock price fluctuations, the Company organized timely
conference calls to address issues of common investor and analyst interest, actively engaging in dialogue and communication. The
Company places particular emphasis on communication with minority investors, encouraging their active participation in shareholders'
meetings. By facilitating the involvement of all investor groups in major decision-making processes, Zhongji InnoLight continuously
improves corporate governance and transparency, demonstrating strong governance practices and a positive corporate image to the
investment community.
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Case Hosting an Investor Day to Strengthen Communication and Strategic Transparency
In September 2025, Zhongji InnoLight held the "Zhongji InnoLight Investor Day" to actively address investor concerns. The
event provided investors with the opportunity to engage in face-to-face discussions with senior management, gaining a deeper
understanding of the Company's business operations and strategic direction.
Zhongji InnoLight Investor Day
Information Disclosure
Zhongji InnoLight strictly complies with relevant regulations, including the Regulations on
During the reporting period
Information Disclosure of Listed Companies and the Rules Governing the Listing of Stocks
on Shenzhen Stock Exchange(2025 Revision) . The Company enhances the authenticity,
accuracy, completeness, and timeliness of disclosed information, standardizes disclosure
procedures, and improves the management and quality of information disclosure.
We have established an Investor Relations section on both our official website and
WeChat account, covering sections such as information disclosure, financial reports,
investor protection, interactive platforms, latest announcements, research reports,
investor activities, and investor education resources. These resources enable investors
The Company released 158
periodic and ad hoc reports
to receive timely updates on important announcements and financial reports, while
industry and company research reports provide deeper insights into the Company and
the development of the sector.
For eight consecutive years,
Zhongji InnoLight has been rated A level in the Shenzhen Stock
Exchange information disclosure assessment.
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Sustainable Development Management
ESG Governance Structure
Zhongji InnoLight has strengthened ESG management by integrating ESG into corporate governance. Following approval by the Board
of Directors, the Company established the ESG Management Working Group under the Sustainability Committee , forming a three-tier,
top-down sustainability management structure: Board of Directors for strategic decision-making, Sustainable Committee for overall
management, and ESG Management Working Group collaborating with relevant departments for implementation. This structure
provides strong support for the Company's sustainable development and establishes an integrated, vertically aligned ESG management
mechanism.
Department Responsibilities
Acts as the highest decision-making body responsible for ESG issues, assuming full accountability for the
Board of Directors Company's ESG strategy and disclosures.
(Strategic Provides guidance and confirms priorities for key ESG issues identified.
Decision-Making) Reviews progress of ESG initiatives through work reports.
Oversees the implementation of ESG measures.
Oversees commitments and performance on key ESG issues and evaluates ESG-related risks.
Reports ESG issues and progress to the Board of Directors on a regular basis, and has preliminarily linked ESG
performance to compensation and evaluation.
Sustainability Reviews compliance with ESG reporting guidelines and discloses relevant information in Environmental, Social,
Committee
and Governance reports.
(Overall
Management) Reviews the performance and work plans of the ESG team, providing guidance and supervision.
Identifies ESG-related risks, develops sustainability strategies, objectives, and plans, and reviews implementation results.
Reports ESG progress to the Corporate Governance Committee semi-annually, reviews the achievement of targets,
and establishes work plans and goals.
ESG Management Assists in mobilizing internal and external resources, guiding and supporting responsible departments in
Working Group implementing action plans and presenting performance results.
(Execution) Holds quarterly meetings to share and discuss progress on sustainability-related issues and their impact on business.
Relevant Departments
Carry out ESG-related work in accordance with the Company's ESG management policies and procedures.
(Execution)
ESG Capacity Building
Zhongji InnoLight places strong emphasis on building ESG capabilities among employees and supply chain partners. The Company
organizes internal ESG training to strengthen employees’ESG awareness and enhance overall ESG competence across the organization.
During the reporting period, the Company received multiple ESG-related recognitions, including the 2025 Cailian Press Zhiyuan Award
for ESG Pioneer Enterprise.
ESG Training to Promote Internal ESG Capacity
and Sustainable Governance
Case
In December 2025, Zhongji InnoLight held an ESG training session,
clarifying the roles of the Sustainability Committee and cross-
departmental collaboration mechanisms. This initiative continues to
strengthen organizational ESG capabilities and governance performance.
Zhongji InnoLight ESG Training
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Stakeholder Engagement
To proactively address stakeholder concerns regarding the Company's ESG practices, Zhongji InnoLight has established effective
communication mechanisms and diverse channels to engage with stakeholders on key topics. This ensures that stakeholder views and
suggestions are fully considered in decision-making processes. For each material issue, the Company implements corresponding actions
to respond to stakeholder interests, fostering constructive dialogue and maintaining strong relationships. Through these efforts, Zhongji
InnoLight aims to achieve mutually beneficial outcomes on sustainability matters.
Stakeholders Concerned Issues Communication Channels
Compliance operation
Paying taxes according to the law Policy implementation, information disclosure,
Pollution prevention and control participation in industry standard-setting, project
Technological innovation cooperatio
Government and
Regulatory Authorities Commercial activity
Transparent disclosure of information General meeting of shareholders, report disclosure,
Asset preservation and enhancement results presentation, investor day, investor relations
Solid growth in performance hotline and email addresses
Investors
Product and service quality
Client questionnaire, client satisfaction survey,
Data security and privacy protection
project cooperation, exchange visits
Technological innovation
Clients
Joint development Supplier management system, supplier code of
Transparent procurement conduct, purchasing policies and agreements, supplier
Supply chain continuity training, supplier communication meetings, on-site
Environmental and social issues audits and supplier evaluations, exchange visits
Suppliers and Partners
Protecting employee rights and interests
Reasonable remuneration package Corporate culture activities, employee grievance
Vocational training and development handling mechanism, employee training, employee
opportunities satisfaction survey, employee contributions and
Quality benefits internal publications
Employees
Humanistic care
Official websites, social media platforms, press
Transparent disclosure of information
releases, industry exhibitions, industry seminars
Media
Rural revitalization Community service activities, public service projects,
Social contribution volunteerism
Community and Public
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Materiality Assessment
To gain a deeper and more accurate understanding of stakeholder expectations and concerns, Zhongji InnoLight conducts
questionnaire-based surveys, inviting a broad range of stakeholders—including employees, suppliers and partners, clients, the public,
investors, industry associations, media, and regulatory authorities—to participate in the identification and assessment of key material
topics across governance, operations, social, and environmental dimensions. Through this process, the Company analyzed and
identified 22 key material topics, providing clear direction and a solid foundation for building a robust sustainability framework.
Issue Identification and Screening Stakeholder Engagement Comprehensive Result Analysis
In alignment with national macro To ensure the comprehensiveness Based on the survey results, the
policy priorities, domestic and and accuracy of the identified Company conducted statistical
international ESG standards, annual topics, the Company engaged both analysis of the issue scores and
topical issues, industry trends, and internal and external stakeholders combined the insights from internal
ESG rating considerations, and through an online questionnaire management and external experts,
based on our business operational survey. adjusted the material issues and
context, we identified material determined their relative priority. A
topics that have significant impacts materiality matrix was subsequently
on the Company's development, developed, and the Report provides
our stakeholders and on financial focused responses to the core issues
materiality. of greatest concern to stakeholders.
Matrix of Material Issues of Double Materiality
High Intellectual Property
Anti-Bribery and Anti-Corruption 20
Data Security and
Environmental Compliance Product and
Social Contribution and Quality
Climate Change
Impact Materiality
Response
Circular Economy 08 07 Water Resource Utilization
Equal Treatment 06 Energy Utilization
of SMEs
Pollutant Emissions
Low Finance Materiality High
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Com liance-Dri en O erations or
S staina le siness
Internal Control
The Company adopts an integrated management approach that combines risk management and compliant operations, and has
established an internal control framework featuring checks and balances through clear segregation of powers. Responsibilities and
authority boundaries across departments are clearly defined to form a mutual supervision and restraint mechanism. The Company
continues to strengthen the development of our internal policies and systems, providing a comprehensive safeguard for stable and
sustainable corporate development.
Through the Risk and Opportunity Response Procedure and the Risk Management Policy, the Company enhances our governance
capabilities through a robust institutional framework. Each year, Internal Audit Department conducts inspections and evaluations of
the Company's internal control system. In addition, an independent assessment of the Company's internal control effectiveness is
conducted by a qualified third-party professional institution, and the results are publicly disclosed.
Adhering to the core risk management philosophy of "proactive risk prevention and prudent operations," we integrate risk management
throughout the entire operational process. Supported by coordinated efforts across all employees, we strengthen our risk defense and
continuously improve our compliance management system. In 2025, we carried out regular risk identification activities, systematically
screening for potential risks across various operational processes and promptly implementing corrective measures for identified issues.
Meanwhile, we further enhanced our compliance management framework, optimized key business processes, and strengthened end-
to-end compliance review mechanisms. Strict review procedures were applied to key matters such as contracts and major decision-
making, with targeted review opinions provided and rectification progress closely tracked to ensure that compliance requirements are
effectively embedded throughout the Company's operations.
Compliance Management System
Strengthen ex-ante legal review and Conduct regular compliance Maintain accessible channels for reporting
financial compliance verification, training and audit inspections, compliance concerns and encourage all
exercising strict oversight over key urging all business units to employees to participate in oversight, thereby
processes such as contract execution strictly adhere to established establishing a closed-loop compliance
and the use of funds to mitigate procedures and promptly rectify management mechanism encompassing ex-
compliance risks. identified issues. ante prevention, in-process control, and post-
event improvement.
Internal Control Objectives
Manage and mitigate company risks
Improve operational outcomes and efficiency
Enhance the reliability of information disclosure
Ensure legal and regulatory compliance while
achieving strategic objectives
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Anti-Bribery and Anti-Corruption
Zhongji InnoLight incorporates anti-bribery and anti-corruption management into the internal control framework. Oversight is provided
by the Board of Directors and the Audit Committee, while the Internal Audit Department coordinates internal audits and anti-fraud
investigations. Each department and subsidiary has clearly defined responsibilities, forming a multi-level collaborative governance
structure. Through a combination of policy frameworks, training programs, and audit and evaluation mechanisms, the Company
ensures the effective implementation of risk prevention measures and compliance objectives .
Governance
Decision-Making and
Execution
Management
Other Functional
Department Audit Committee Internal Audit Department Departments and
Departments of Subsidiaries
The Audit Committee Responsible for coordinating and advancing Responsible for promoting the
is accountable to the integrity and compliance management across effective implementation of
Board of Directors and is the Company, and regularly conducting integrity anti-bribery and anti-corruption
responsible for reviewing awareness and communication initiatives to requirements in daily operations.
Terms of Reference, the Company’
s financial strengthen employees' ethical awareness. The
Responsibilities information and its department also monitors integrity risk points
and Objectives disclosure, as well as throughout business processes, maintains
overseeing and evaluating open communication channels, and receives
internal and external audit relevant whistleblowing reports to ensure the
work and internal control orderly implementation of anti-bribery and
systems. anti-corruption efforts.
Supervision and Assessment
Zhongji InnoLight has established policies such as the Regulations for Internal Audit and the Regulations for Internal Control to
leverage internal audit in strengthening internal controls, improving operational management, and enhancing economic performance.
The Company has reinforced internal control management, with the Internal Audit Department reporting audit results to the Audit
Committee on a quarterly basis. This mechanism supports the ongoing improvement of the Company's internal control system,
enhances operational management, effectively mitigate operational risks, and contributes to the overall corporate value.
The Company attaches great importance to anti-bribery and anti-corruption management and has incorporated business ethics and
integrity compliance requirements into the corporate governance framework. We have formulated policies such as the Integrity and
Self-discipline Guidelines and the Anti-Bribery and Anti-Corruption Policy , which clarify the fundamental principles and management
requirements for preventing commercial bribery and corruption. These requirements are embedded into the Company's governance
and internal control framework, with the Board of Directors responsible for overseeing business ethics and anti-fraud initiatives.
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Strategy
Zhongji InnoLight adheres to an anti-bribery and anti-corruption strategy that prioritizes prevention while combining preventive and
punitive measures, building a comprehensive risk prevention and control system across the entire operational process. Grounded in
institutional development and supported by regular oversight, Zhongji InnoLight integrates business ethics and integrity compliance
requirements into operational decision-making, business processes and personnel management through policies such as the Anti-
Bribery and Anti-Corruption Policy . By combining sound institutional frameworks, capability building and a culture of integrity, Zhongji
InnoLight continuously mitigates integrity-related risks, safeguards a fair and transparent business environment, and strengthens
stakeholders' trust in the Company.
Risk Description Period Response Measures
High-risk areas such as sales and Continuously strengthen the anti-bribery
Compliance and procurement may involve bribery, policy framework and conduct role-based
Short Term
Legal Risk kickbacks or the exchange of improper training and audit oversight.
benefits.
Incomplete processes or ineffective
Continuously improve internal control
Internal Control implementation may result in bribery or Short- to
processes and conduct regular internal
Deficiencies corruption not being detected in a timely Medium-term
audits and risk assessments.
manner.
Suppliers, clients or other partners may Establish supplier compliance admission
Partner Integrity Medium- to
engage in dishonest practices, potentially and evaluation mechanisms, and
Risk Long-term
leading to bribery or financial losses. strengthen partner oversight.
Opportunity Description Period Response Measures
Enhanced A robust anti-bribery and anti-corruption
Advance the development of the
Corporate framework helps strengthen the Medium- to
governance framework and improve
Governance and Company's reputation for integrity and Long-term
transparency.
Reputation investor confidence.
The operation of the anti-bribery Continuously improve internal control and
Strengthened management framework promotes the audit mechanisms.
Risk Management optimization of the internal control Long Term
Capability system and enhances risk response
capability.
A sound compliance system helps Integrate compliance into international
Internationalization
address overseas regulatory business management and strengthen
and Business Long Term
requirements and supports global training and oversight.
Expansion
business development.
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Impact, Risk and Opportunity Management
Zhongji InnoLight has established a full-process risk identification and assessment mechanism for anti-bribery and anti-corruption
management. The Company regularly conducts integrity risk assessments in key areas such as business cooperation and financial
transactions to accurately identify and evaluate potential risks. At the same time, integrity and compliance requirements are
incorporated into opportunity management. Zhongji InnoLight gives priority to partners with strong records of integrity and compliance,
thereby enhancing the quality and effectiveness of cooperation, effectively reducing integrity risks, ensuring the compliance of business
operations, and fostering a sound corporate reputation. During the reporting period, the Company regularly participated in industry
forums on risk management and internal control.
Business Ethics Management
The Company has established an anti-fraud mechanism and adheres to the principle of combining punishment with
prevention, with a focus on prevention. Zhongji InnoLight clearly defines key focus areas and critical processes in
anti-fraud management, as well as the responsibilities and authorities of relevant departments and bodies involved
in anti-fraud efforts. The Company has also standardized procedures for the reporting, investigation, handling,
reporting, and remediation of fraud cases.
Zhongji InnoLight has formulated a series of anti-corruption policies, including the Anti-Bribery and Anti-Corruption
Policy , the Integrity and Self-discipline Guidelines, and the Employee Complaint and Reporting Handling Procedures .
The Company has also developed an Anti-Corruption(&Conflict of Interest) Self-Inspection Form , and regularly conducts
integrity training and conflict-of-interest investigations. From the corporate level to operational practices, Zhongji
InnoLight promotes standardized and compliant operations, requiring employees, suppliers and business partners to
uphold high standards of business ethics. During major holidays such as the Spring Festival and Mid-Autumn Festival, the
Company sends reminder emails to suppliers and employees to reinforce compliance with integrity and self-discipline
requirements.
Zhongji InnoLight's Internal Audit Department incorporates business ethics and compliance requirements into the
development of the annual audit plan. On the basis of comprehensive audits across all business units, the Company
conducts targeted audits in areas with higher business ethics risks, strengthening compliance control over critical
processes and key areas, ensuring adherence to external regulatory requirements. During 2025, these audits were
successively reviewed and approved by external oversight bodies, including RBA and third-party audit institutions.
Our audit plan is executed at least once every three year to achieve full coverage of all operational sites within
the Company. The audit scope includes compliance with the business ethics code and anti-corruption policy. Any
business ethics issues identified during audits are tracked and verified by the Internal Audit Department, which
supervises corrective actions to ensure proper resolution of identified problems.
Zhongji InnoLight requires all partners to sign the Supplier Honesty and Integrity Agreement and conducts business
ethics audits to jointly cultivate a clean, transparent, and compliant working environment. In addition, the Company
strictly safeguards commercial secrets and intellectual property through procedures such as the Privacy Protection
Management Procedure and the Confidential Information Management Procedure , ensuring proper custody and
controlled use of sensitive, private, or confidential information and materials of clients, suppliers, employees, and
other business partners.
The Company is committed to protecting anyone who refuses to participate in bribery or corruption, as well as
individuals who report in good faith any actual or potential bribery or corruption incidents. Zhongji InnoLight
ensures that such individuals are not subjected to dismissal, disciplinary action, threats, or any other adverse
treatment related to the report. If employees or any third-party representatives believe they have experienced
unfair or improper treatment, they have the right to report it to the Company and the Company will immediately
take necessary protective measures to ensure that the legitimate rights and interests of the relevant personnel are
properly safeguarded. The Company has clearly stipulated a whistleblower protection system in the Employee
Handbook , ensuring accessible anonymous reporting channels, strictly preventing and prohibiting any form of
retaliation, and effectively safeguarding the legitimate rights and interests of whistleblowers.
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Zhongji InnoLight Integrity Reporting Channels
Zhongji InnoLight has established an integrity reporting hotline to receive supervision and reports from all employees via
email, phone, and online communication.
a) Email e orting: Send emails to the reporting mailbox at anti_fraud@innolight.com
b) Phone e orting: Call the reporting line at +86 0512-86669288-8999
Business Ethics Training
All employees of Zhongji InnoLight (including directors, senior management, full-time employees, contractors, and interns) are
required to participate in regular training on anti-bribery and anti-corruption policies and requirements. In addition, the Company
organizes internal training that incorporates business ethics, including onboarding training, role-specific training for key positions, and
management-level training. The training covers all employees, including contractors, ensuring business ethics education across all
positions and levels. Employees are required to complete training assignments and assessments to evaluate the effectiveness of the
training. The Company also strengthens internal communication on integrity and ethical behavior, reiterates regulatory red lines, raises
anti-fraud awareness, and emphasizes the importance of business ethics in company operations.
In October 2025, Zhongji InnoLight conducted anti-corruption and integrity awareness training. New employees received integrity and
anti-corruption orientation during onboarding, delivered through online videos and exams, forming a complete training loop.
Metrics and Targets
Zhongji InnoLight's anti-bribery and anti-corruption efforts are centered on creating a
During the reporting period
clean and fair business environment. The Company is committed to preventing all forms
of commercial bribery and corruption, maintaining fair market competition. At the same Employee coverage for
time, by strengthening integrity controls and internal governance, Zhongji InnoLight anti-corruption training
ensures asset security, compliance in operations, and establishes a trustworthy and
law-abiding corporate image. During the reporting period, Zhongji InnoLight had no
reached 100%
reported incidents of corruption or bribery.
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Trade Compliance
Zhongji InnoLight leverages trade compliance as a key focus, concentrating on organizational management, process development, risk
management, and awareness training to establish a comprehensive trade compliance system, ensuring that all trade operations are
conducted in an orderly and compliant manner.
Trade Compliance Organizational Management
We continuously improve our trade compliance management system and operational standards. By clarifying behavioral boundaries,
specifying management requirements, and strengthening process controls—combined with risk identification, assessment, mitigation,
and corrective procedures—the Company effectively enhances the systematic and actionable nature of compliance management, laying
a solid foundation for standardized market conduct and compliant operations. During the reporting period, the 2025 Trade Compliance
Policy was published on the official websites of Zhongji InnoLight, InnoLight Suzhou, TeraHop, and other affiliated entities.
Governance Structure
Convene meetings on an ad hoc basis as needed to discuss and make decisions on strategic and
Trade Compliance significant matters related to the Company's trade compliance.
Committee
Fully support the development and implementation of export control compliance programs to
(Management)
prevent, identify, and address export control risks and issues.
Implement trade control compliance programs: develop, interpret, and update relevant policies,
Trade Compliance procedures, and regulatory documents; monitor compliance and execution; and provide and
Team of the Legal organize related training and advisory services.
Department and Other
Ensure that all departmental staff have read, understood, and agreed to comply with the Company's
Functional Departments
relevant management policies and operational standards; execute all specific requirements of the
(Execution)
policies and procedures; and promptly report any potential or actual trade compliance violations.
Trade Compliance Mechanism
Zhongji InnoLight has established a comprehensive trade compliance operating framework, supported by three pillars: policy and
process foundation, operational and monitoring mechanisms, and organizational assurance with clear role allocation, ensuring effective
implementation of all trade compliance activities.
Policy and Process Covers both general and specific aspects, including trade compliance policies, management commitment,
Foundation the trade compliance manual, and effective compliance procedures.
Self-assessments and risk evaluations enable continuous improvement;
Operational Effective compliance training ensures awareness across all staff;
and Monitoring Robust export authorization procedures guarantee that all exports undergo necessary pre-approval reviews;
Mechanisms
Timely remedial measures should be taken to address potential violations, and compliance efforts should
be encouraged and enforced through a system of compliance rewards and penalties.
Organizational A three-tier governance structure has been established, comprising the Trade Compliance Committee,
Assurance and Role a dedicated trade compliance team, and compliance liaisons designated within each business unit and
Allocation subsidiary, with clearly defined responsibilities.
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Trade Compliance Risk Trade Compliance
Management Awareness Training
To ensure trade compliance policies are effectively implemented and to Trade compliance is a critical lifeline for the
manage compliance risks across core business operations and partners, Company's sustainable development. It is not only
the Company has established a top-down dynamic assessment system, the responsibility of specific departments but also a
involving the Internal Audit Department, the Legal Department's trade shared duty and behavioral standard for all employees.
compliance team, and relevant departments and subsidiaries. By Internally, Zhongji InnoLight conducts trade
utilizing compliance self-checklists, each department can quickly compliance awareness training for senior management
identify potential risk signals. and all staff through a combination of online and
offline methods. The training covers topics such as the
In the risk control and process optimization phase, the Company
Company Trade Compliance Policy and Management
leverages the trade compliance system to enhance timeliness and
Compliance Commitment and Basic Knowledge of
automation in partner management; embeds trade compliance
Trade Compliance . In addition, dedicated training
standard clauses into external testing, trials, and investment scenarios
sessions are provided for business units including
to standardize procedures; integrates trade compliance review nodes
Sales, Supply Chain, R&D, Product Management,
during supplier onboarding and client setup; and dynamically tracks and
Finance, Investment, and HR. Departmental
analyzes updates to major restricted parties' lists and relevant laws and
compliance updates are also communicated via email
regulations, assessing potential impacts and arranging necessary audits.
to reinforce compliance requirements and provide
During the emergency remediation phase, multiple secure reporting clear operational guidance. Externally, the Company
channels are provided to ensure that any potential violations are periodically shares updates on trade regulations
promptly communicated. These include reporting to supervisors, to enhance awareness and understanding of trade
dedicated reporting email, written submissions by mail, and in-person compliance among business partners.
reporting.
Trade Com liance e orting Channel:trade.compliance@innolight.com
Anti-Unfair Competition
Zhongji InnoLight strictly complies with the Anti-Unfair Competition Law of
the People's Republic of China , upholds the principle of fair competition, and
lawfully safeguards the legitimate rights of consumers and public interests. The
Company opposes and resists any fraudulent, coercive, collusive, obstructive, or
otherwise illegal or unethical practices. We strictly forbid harming the legitimate
rights of other businesses or consumers, or disrupting market competition
through monopolistic or unfair competition practices.
Meanwhile, the Company has established policies and procedures including
the Confidentiality Management Policy , Confidential Personnel Management Commercial Secrets Training
Rules , Confidential Facilities Management Rules , and Confidential Information
and Carrier Management Rules , building a comprehensive confidentiality During the reporting period
management framework. Zhongji InnoLight has implemented demonstration
Zhongji InnoLight was not in ol ed in
sites for trade secret protection, strengthened trade secret training, and applied
any legal cases related to monopolistic
both incentive and disciplinary measures, thereby reinforcing defenses against
or unfair competition practice
unfair competition.
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
endi
Key Performance Indicators
Indicator Unit 202311 202412 202513
Environmental Performance
Scope 1 GHG emissions tCO2e 1,088.12 1,476.64 2,055.48
Direct (Scope 1) GHG emissions per 10,000 yuan of
tCO2e/10,000 yuan revenue 0.001015 0.000619 0.000538
revenue
Scope 2 GHG emissions (market-based) tCO2e 86,632.18 125,075.50 129,715.59
Scope 2 GHG emissions (location-based) tCO2e / / 143,033.26
Indirect (Scope 2) GHG emissions per 10,000 yuan of
tCO2e/10,000 yuan revenue / / 0.037404
revenue (location-based)
Scope 3 GHG emissions tCO2e 71,229.63 180,397.6116 *17
Other indirect (Scope 3) GHG emissions per 10,000
tCO2e/10,000 yuan revenue 0.000665 0.000756 *
yuan of revenue
Total GHG emissions (Scope 1 + Scope 2 (market-
tCO2e 87,720.30 126,552.14 131,771.07
based))
GHG emission intensity (Scope 1 + Scope 2 (market-
tCO2e/10,000 yuan revenue 0.081844 0.053035 0.034459
based))
Tons of CO2 equivalent per ton of standard coal tCO2e/tce 5.77 5.53 3.79
Comprehensive energy consumption tce 15,204.00 22,894.49 34,793.67
Gasoline L 197,316.24 187,910.92 61,197.67
Diesel fuel L / 92,015.71 62,059.22
Natural gas m3 218,390.00 273,375.00 401,686.00
By energy type
LPG kg / / 37,776.00
Purchased electricity consumption 10,000 kWh 11,980.44 20,547.02 27,742.75
Renewable energy consumption 10,000 kWh 242.30 273.95 529.13
Electricity consumption intensity kWh/10,000 yuan revenue 114.04 86.11 72.55
Total water consumption ton 440,783.80 840,122.90 865,058.80
The statistical scope of the 2023 data includes all subsidiaries, including InnoLight Suzhou.
The statistical scope of the 2025 data includes all subsidiaries, including InnoLight Suzhou, InnoLight Tongling, Pioseed Technology, Tsuhan
Technology, Jingle Electronic, and TeraHop (including its subsidiaries). TeraHop US currently only has office operations, which have minimal
impact on data reporting, and are therefore not included in the calculations.
Scope 1 emissions are calculated based on activity data such as fuel consumption and refrigerant leakage, along with the corresponding emission
factors. Default emission factors are primarily sourced from IPCC guidelines, supplemented by region-specific emission factors where available.
Scope 2 emissions are accounted for using both the location-based method and the market-based method. Under the location-based method,
emissions are calculated using the grid average emission factors of the regions where subsidiaries operate, including but not limited to China,
Singapore, and Thailand. Under the market-based method, emissions are calculated based on supplier-specific emission factors (where
available), or using residual mix/grid average emission factors.
The 2024 Scope 3 GHG emissions data is derived from the GHG verification reports of InnoLight Suzhou and TeraHop Thailand.
The verification of the 2025 Scope 3 GHG emissions is still underway, and the data is planned to be disclosed in the next annual report.
For the calculation of comprehensive energy consumption, the energy conversion factors are based on the General Rules for Calculation of the
Comprehensive Energy Consumption (GB/T 2589-2020).
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Indicator Unit 2023 2024 2025
Environmental Performance
ton/10,000 yuan
Water consumption intensity 0.411256 0.352073 0.226219
revenue
Total wastewater discharge ton 352,627.07 672,098.32 692,047.04
ton/10,000 yuan
Wastewater discharge intensity 0.329005 0.281659 0.180975
revenue
Ammonia nitrogen emissions ton 3.85 6.94 14.84
Ammonia nitrogen emissions intensity 0.000004 0.000003 0.000004
revenue
Chemical oxygen demand ton 58.53 99.51 109.64
ton/10,000 yuan
Chemical oxygen demand emissions intensity 0.000055 0.000042 0.000029
revenue
Total hazardous waste ton 60.50 124.26 241.51
Total non-recyclable waste ton 577.01 1,245.90 1,407.92
Total recyclable waste ton 101.39 165.78 751.31
Indicator Unit 2023 2024 2025
Social Performance
Total employees person 6,029 8,542 11,625
Men person 3,096 4,484 6,023
Gender
Women person 2,933 4,058 5,602
Master's degree or above person 298 387 572
Undergraduate person 1,006 1,501 2,149
Education
College person 1,202 2,007 2,954
College or below person 3,523 4,647 5,950
Age 31 to 40 person 3,083 4,123 5,130
Sales employee person 52 115 135
Production and construction
person 3,628 5,625 8,090
employee
Functions Administrative employee person 793 769 977
Financial employee person 77 86 82
Technical employee person 1,479 1,947 2,341
Due to changes in statistical methods, the data for ammonia nitrogen emission and its intensity, as well as chemical oxygen demand (COD)
emission and its intensity for 2023 and 2024, have been corrected. In case of any discrepancies with previous reports, the disclosures in the 2025
ESG Report shall prevail.
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Indicator Unit 2023 2024 2025
Social Performance
Disabled employees person 19 14 28
Part-time employees person / / 0
Ethnic minority employees person / / 225
Labor contract signing rate % 100 100 100
Total number of employees receiving training times 17,364 61,509 61,495
Total employee training hours hours 35,438 83,883.5 3,833,965.17
Employees in positions with occupational disease risk person 3,022 2,612 6,236
Employees taking physical examinations for
person 3,022 2,612 6,236
occupational diseases
Employees suffering from occupational diseases person 0 0 0
Safety production investment 10,000 yuan 831 1,207 4,333.35
Work-related injuries person 12 11 16
Work-related accidents cases 12 11 16
Number of fatalities due to work-related injury cases 0 0 0
Number of fatalities due to work-related injury person 0 0 0
R&D investment 10,000 yuan 80,938.89 133,255.68 167,593.11
Charitable donation expenditure 10,000 yuan 10.35 40.35 424.61
Indicator Unit 2023 2024 2025
Governance Performance
Number of regular and interim reports piece 228 150 158
Number of board meetings times 10 11 10
Number of shareholder's general meetings times 5 3 5
Number of board members person 7 7 8
Men person 5 5 5
Gender
Women person 2 2 3
Independent director person 4 4 4
Independence
Dependent director person 3 3 4
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Indicators Index
Report Framework
Guide for the Global Reporting Self-Regulatory Guidelines
Preparation of Initiative Standards No. 17 for Companies
Second Level Corporate Social (GRI Standards) Listed on Shenzhen Stock
First Level Title Third Level Title
Title Responsibility issued by the Global Exchange-Sustainability
Report in China Sustainability Report (For Trial
(CASS-ESG 6.0) Standards Board Implementation)
About the Report / / P1.1,P1.2 2-1,2-2,2-3 Article 3; Article 4; Article 7
Message from the
/ / P2.1 2-22 Article 2
Chairman
Company Profile / P3.1-3.4 2-6 /
Corporate
/ P3.2 / /
About Zhongji Culture
InnoLight
Milestones / / / /
Annual Honors / / / /
Responding to SDGs / / / / /
Governance E1.1.1-1.1.6 201-2 Article 14; Article 21-23
Green Transition E1.1.7-1.1.9, 305-1,305-2,305-3,305-
and Carbon Strategy Article 8; Article 24-26
E1.1.12-1.1.14 4,305-5
Reduction for
Climate Change Impact, Risk and
E1.1.15-1.1.18 / Article 8; Article 27
Response Opportunity Management
Metrics and Targets E1.1.19 / Article 28
Advancing Green Environmental
E2.1.1,E2.4.1-2.4.3 / Article 33
Development and Management
Pollution
Building a Low- Prevention E2.1.2-2.1.7, 305-7,306-1,306-2,306-
Carbon Future Waste and Emissions Article 30-31
and Ecosystem E2.2.1-2.2.7 3,306-4,306-5
Protection
Biodiversity Protection E2.3.3 101-1,101-2,101-3 Article 32
Energy Management E3.1.1-3.1.5 Article 35
Resource 4,302-5
Efficiency
and Circular Water Management E3.2.1-3.2.4 Article 36
Economy
Development Resource Recovery and
E3.3.1-3.3.6 301-3,306-4,306-5 Article 37
Reuse
Zhongji InnoLight Co., Ltd.
Environmental, Social and Governance (ESG) Report 2025 Message from the Chairman About Zhongji InnoLight Responding to SDGs
Report Framework
Guide for the Global Reporting Self-Regulatory Guidelines
Preparation of Initiative Standards No. 17 for Companies
Corporate Social (GRI Standards) Listed on Shenzhen Stock
First Level Title Second Level Title Third Level Title
Responsibility issued by the Global Exchange-Sustainability
Report in China Sustainability Report (For Trial
(CASS-ESG 6.0) Standards Board Implementation)
Governance S2.1.1 / Article 42
Strengthening R&D
Strategy S2.1.2 / Article 42
Capabilities to
Drive Technological Impact, Risk and
S2.1.3-2.1.13 / Article 42
Innovation Opportunity Management
Metrics and Targets S2.1.9-2.10 / Article 42
Products and Services S3.3.1-3.3.6 416-1 Article 47
Partnering Across
the Value Chain to S2.1.1-2.1.13, 308-1,308-2,
Responsible Supply Chain Article 45
Build a Sustainable S3.4.1-3.4.2 414-1,414-2
Harnessing Ecosystem Data Security and Client
S3.4.1-3.4.4 418-1 Article 48
Diverse Privacy
Stakeholders to
Governance S4.1.11-4.1.12 / /
Co-create and
Share Value
Strategy S4.1.1-4.1.10 / Article 49-50
Empowering Talent
and Fostering a 403-1,403-2,403-3,403-4,
People-Centric Impact, Risk and S4.3.1-4.3.2, 403-5,403-6,403-7,403-8,
Article 50
Workplace Opportunity Management S4.2.1-4.2.6 403-9,403-10,404-2,404-3,
Metrics and Targets S4.3.2-4.3.6 404-1, 404-3 Article 50
Fulfilling Social
Responsibility
and Contributing / S1.1.1-1.2.6 203-1 Article 39-40
to Community
Development
Corporate Governance / Article 12; Article 52
ESG Governance
and Stakeholder Investor Relations G1.3.1-1.3.2 2-29 Article 9
Engagement
Enhancing Sustainable Development
G1.1.1-1.12 2-9,3-1,3-2,3-3 Article 5; Article 53
Governance Management
Effectiveness and
Internal Control G1.1.8 / Article 12
Strengthening the
Foundation for Compliance- Anti-Bribery and Anti-
G2.1.1-2.1.8 205-2,205-3 Article 55
Sustainability Driven Operations Corruption
for Sustainable
Trade Compliance G2.2.1-2.2.3 206-1 Article 56
Business
Anti-Unfair Competition G2.2.1-2.2.3 206-1 Article 56
Key Performance
/ A2 / /
Indicators
Appendix Indicators Index / A3 / Article 57
Feedback Form / A6 / /
Advancing Green Development Harnessing Diverse Stakeholders Enhancing Governance Effectiveness and
and Building a Low-Carbon Future to Co-create and Share Value Strengthening the Foundation for Sustainability Appendix
Feedback Form
Dear readers:
Thank you very much for taking time out of your busy schedule to read the Zhongji InnoLight 2025 Environmental, Social and
Governance (ESG) Report. In order to provide you and other stakeholders with more valuable information, and effectively promote the
Company's ability and level to fulfill ESG responsibilities, we sincerely look forward to your comments and suggestions.
Your overall assessment of this report is:
Very good Good Fair Poor
How do you evaluate the response and disclosure of this report to the concerns of stakeholders?
Very good Good Fair Poor
What do you think of Zhongji InnoLight's performance on economic responsibility?
Very good Good Fair Poor
What do you think of Zhongji InnoLight's performance on environmental responsibility?
Very good Good Fair Poor
What do you think of Zhongji InnoLight's performance on safety management?
Very good Good Fair Poor
What do you think of Zhongji InnoLight's performance on employee responsibility?
Very good Good Fair Poor
What do you think of Zhongji InnoLight's performance on community responsibility?
Very good Good Fair Poor
Are the information, indicators and data disclosed in this report clear, accurate and complete?
Very good Good Fair Poor
Do you think the content arrangement and layout design of this report are easy to read?
Very good Good Fair Poor
O en estions
Do you have any comments or suggestions regarding the ESG philosophy and practices of Zhongji InnoLight Co., Ltd., or this report?
STOCK CODE： 300308
Zhongji InnoLight Co., Ltd.
Contact address: Zhuyouguan Town Industrial Park, Longkou City,Shandong Province, China
Postalcode: 265705
Tel: +86 0535-8573361
E-mail: info@zj-innolight.com
首页
微信公众号
证券之星APP
