Environmental, Social and Governance (ESG) Report
CONTENTS
ETEK Principles Ensures Stead ETEK Innovates the Future with Chips,
Progress and Long-term Success Advancing Through Technology
Corporate Governance 18 Innovation-driven Development 32
Compliance and Risk Management 23 Safety and Quality of Products and Services 44
About This Report 1 Promotion of Industry Development 49
Business Ethics 29
Supply Chain Security 51
Chairman's Message 2
Data Security and Customer Privacy Protection 55
About ETEK 4
Sustainability Management 12
Appendices 93
ETEK Moves Towards a Future Led by ETEK Pools Strength to Achieve
Green and Low-Carbon Development Win-Win Development
Climate Change Tackling 61 Protection of Employee Rights and Interests 75
Environmental Compliance Management 65 Career Development and Training 82
Energy Conservation and Emission Reduction 66 Occupational Health and Safety 89
Contributions to the Society 91
About This Report
This Report is the third Environmental, Social and Corporate Governance ("ESG") report released by Wuxi ETEK Microelectronics Co., Ltd., which provides a detailed
disclosure of the ESG performance of the Company and its subsidiaries during their operations in 2025. The publication of this Report aims to engage in effective
communication with all stakeholders in a transparent and open manner, systematically responding to stakeholders' expectations and requirements.
Basis of Preparation Data Description
This Report complies with the Guidelines No. 14 of Shanghai Stock Exchange for Self-regulation The qualitative and quantitative information used in this Report was
of Listed Companies - Sustainability Report (Trial) issued by the Shanghai Stock Exchange, and derived from original data from the Company's actual operations, annual
makes reference to the GRI Standards published by the Global Reporting Initiative (GRI), Climate- financial data, internal relevant statistical statements, etc. Specifically,
related Disclosures Standards (IFRS S2), the Sustainability Accounting Standards Board (SASB) the financial data cited in this Report comes from the financial statements
Standards, the United Nations Sustainable Development Goals (UNSDGs) and the China Corporate in the 2025 Annual Report, which have been independently audited by an
Sustainability Reporting Guide (CASS-ESG 6.0) issued by the Chinese Academy of Social Sciences. accounting firm and received an unqualified opinion. Unless otherwise
stated, all currency amounts in this Report are in RMB.
Reporting Period Reliability Assurance
Unless otherwise stated, this Report covers the Reporting Period from 1 January 2025 to 31
In line with the principles of accuracy, comparability, substance and
December 2025 (the "Reporting Period"). Any content that falls outside the above time scope will
verifiability, this Report objectively, truthfully and completely discloses
be specified in this Report.
information without any false records, misleading statements, or significant
omissions. This Report has been reviewed and approved by the Board
Scope of The Report of Directors, which is responsible for the authenticity, accuracy and
completeness of the content.
The scope of this Report includes Wuxi ETEK Microelectronics Co., Ltd. and its holding companies.
Unless otherwise specified, the scope of this Report is consistent with the Company's annual Access to the Report
report.
This Report is published in both simplified Chinese and English. In case
Appellations in This Report of any discrepancy between the two versions, the simplified Chinese
version shall prevail. You can access and download this Report from the
For the sake of clarity and readability, Wuxi ETEK Microelectronics Co., Ltd. is referred to as
official website of the Company at https://www.etek.com.cn/ and that
the "Company", "we/our/us" or "ETEK" in this Report.
of the Shanghai Stock Exchange at http://www.sse.com.cn/.
Abbreviations in This Report Full Company Name Entity Attribute
Wuxi ETEK Microelectronics Co., Ltd. (including
ETEK, the company, the Company, we, us Parent company and consolidated entities
subsidiaries within the scope of consolidation)
MST Wuxi Milestone Semiconductor Inc. Material subsidiary
Semiconductor Wuxi Semiconductor Technology Co., Ltd. Material subsidiary
Chairman's Message
Dear shareholders, partners and friends from all sectors of society,
As time moves forward and a new chapter unfolds, the global semiconductor industry is currently entering a critical phase of restructuring and upgrading. The wave
of domestic substitution is advancing in depth, and new opportunities and new tracks for industrial development are emerging at an accelerated pace. In 2025, ETEK
worked in unity with all partners, pooling our efforts and striving forward. We remained steadfast in our core values of "customer-centricity, integrity, professionalism,
collaboration and mutual benefit." Leveraging the dedicated efforts of all employees, the strong support of our partners and the attentive care from all sectors of society,
we achieved steady breakthroughs and abundant results in technological innovation, market expansion, ESG practices and social responsibility, thereby laying a solid
foundation for the Company's high-quality and sustainable development.
In 2025, ETEK took cultivation of new quality productive forces as its core strategic direction, deepened its focus on the core track of analogue integrated circuits,
adhered to upholding fundamental principles while innovating and pursuing diversified expansion, and continued to open up new horizons while consolidating its core
strengths. We firmly leveraged our technological and market advantages in the consumer electronics sector, deepened strategic synergy with leading customers, and
at the same time accelerated strategic penetration into high-end, high-value-added scenarios such as industrial electronics, automotive electronics and healthcare,
established in-depth cooperation with mainstream automotive manufacturers, and successfully built a development landscape centred on consumer electronics with
a diversified market layout. With cutting-edge technology as our foundation and innovative products as our vehicle, we continued to create core value for customers
worldwide, leveraging the power of chips to empower the digital and intelligent transformation of thousands of industries.
Uphold integrity and embrace innovation to strengthen the foundations of governance. Sound corporate governance is the fundamental safeguard for an enterprise
to operate steadily and achieve long-term success, and is also the core support for an enterprise to respond to industrial transformation and seize development
opportunities. In 2025, we continued to improve the three-tier governance system, benchmarking against high-standard regulatory requirements both internationally
and domestically, optimising governance mechanisms, and advancing the deepening and effective implementation of diversity of the Board of Directors, thereby
empowering more scientific decision-making through diverse perspectives. We have always adhered to the philosophy of transparent operations, improved our
information disclosure and investor relations management system and won market trust through open and candid communication; At the same time, we consolidated
the bottom line of compliance management, improved a whole-process risk prevention and control system, and continuously strengthened institutional development in
areas such as anti-commercial bribery and anti-unfair competition, thereby safeguarding the Company's high-quality development with robust governance capabilities.
Pursue technology-led development and strengthen innovation momentum. Innovation is the core lifeblood of semiconductor enterprises and, moreover, a key lever
for cultivating new quality productive forces. In 2025, we continued to increase strategic expenses on R&D, expanded the scale of our core R&D team, and focused R&D
innovation on the core needs of the industry and frontier technological directions. We tackled core technologies such as high-voltage, high-current and low-power power
management ICs, driving product upgrades towards higher integration, higher performance and higher reliability. We continued to strengthen our intellectual property portfolio and
accelerated the translation and implementation of the transformation of technology achievements. Multiple innovative products were successfully launched throughout the year
and were widely applied across diverse fields such as consumer electronics, industrial control and automotive electronics. Our subsidiaries also achieved breakthroughs in overseas
markets for core technologies and products, demonstrating our strong capabilities to commercialise technology and competitiveness in international markets. We have always
regarded technological innovation as our core engine, and used high-quality innovative achievements to build the Company's core competitive barriers.
Promote green and low-carbon practices and fulfil ecological responsibilities. As a high-tech enterprise, ETEK has consistently integrated the philosophy of green development
into our corporate strategy and the entire process of development. Through innovation in chip technology, we supported the achievement of the "Dual Carbon" goals and fulfilled
our ecological responsibilities. In 2025, we deepened our research, development and application of clean technology. With chip products featuring high energy efficiency, low power
consumption and high integration, we supported downstream industries in saving energy and reducing consumption, and in using resources efficiently. From the product end, we
promoted the green and low-carbon transformation of the industrial chain. At the corporate operations level, we have established a systematic energy and resource management
system and promoted practices such as green office initiatives and the circular economy, reducing our environmental footprint at source. At the same time, we incorporated climate
change response into our corporate development considerations, identified green opportunities in industrial transformation, integrated low-carbon requirements into supply chain
management, and promoted upstream and downstream collaboration to build an industry ecosystem for sustainable development.
Adhere to the people-centred principle and build a win-win ecosystem together. Talent is the primary resource for corporate development, and symbiosis and win-win are
the core essence of corporate sustainable development. In 2025, we continued to improve our system for safeguarding employees' rights and interests, upheld the employment
philosophy of equity, inclusion and diversity, enhanced the employee career development and training system, and built a platform for employees' growth and development,
enabling employees and the enterprise to grow and develop together, and continuously enhancing employees' sense of belonging and happiness. At the social responsibility level,
we deepened university–enterprise collaboration and established a platform for industry–academia–research collaborative innovation and talent development, cultivating high-
quality professional talent for the industry. We actively participated in the rural revitalisation initiative, focusing on targeted efforts in areas such as empowering rural education.
Through practical actions, we gave back to society and fulfilled our corporate social responsibility.
Standing at a new point of development, and facing the new opportunities and challenges in the semiconductor industry, ETEK will continue to uphold its core philosophy
of "Quality First, Service as the Foundation", with the vision—"to become a globally leading and trusted innovative chip design company". We will continue to deepen
our efforts in core technology R&D, drive product and market upgrades through high-quality innovation, continuously strengthen our ESG management capabilities, and
embed the concept of sustainable development throughout every stage of strategic planning, product R&D and production and operations. In the future, we will always
work hand in hand with all stakeholders, joining forces for mutual success. With higher-quality products, more standardised governance, and a more proactive sense of
responsibility, we will contribute to the independent innovation and development of China's semiconductor industry, and create greater value for industry progress and
social development!
Chairman of ETEK
Minmin YUAN
About ETEK
ETEK is a high-tech enterprise focusing on the research, development and Qualifications
sales of products such as power management, signal chain, drivers and
discrete devices. Our products are widely used in multiple fields, including
consumer electronics, automotive, communications and industry. The
Company has an established R&D team of 331 people, has put in place a
standardised and digitised R&D system, and has obtained a number of core
invention patents. We have accumulated extensive design experience and
technical reserves, and, leveraging efficient R&D processes, abundant core
National-level National-level Jiangsu Province-
technologies and modular IP, have built strong R&D capabilities and system- Specialised, Refined, Specialised, Refined, Certified Software
Featured and Innovative Featured and Innovative Enterprise Technology
level solution capabilities. "Little Giant" Enterprise "Little Giant" Enterprise - Centre
Semiconductor
ETEK
Year of Establishment 2002
High-tech Enterprise High-Tech Enterprise - High-tech Enterprise -
Stock Code 688601 Semiconductor MST
Shanghai Stock Exchange Science
Listing and Technology Innovation Board
("SSE STAR Market")
Headquarters Wuxi, Jiangsu, China Specialised, Refined, Specialised, Refined, Specialised, Refined,
Featured and Innovative Featured and Innovative Featured and Innovative
Small and Medium-sized SME in Jiangsu Province - Small and Medium-sized
Enterprise in Jiangsu Semiconductor Enterprise in Jiangsu
Province Province - MST
Core Business
ETEK is deeply engaged in the field of analogue integrated circuits, guided by market demand and the technological frontier. Our business covers multiple
areas, including consumer electronics, industry and automotive electronics, with a core focus on the R&D and sales of products such as power management,
signal chains, drivers and discrete devices, as well as the provision of system solutions.
The Company's main product categories include power IC, signal chain IC, protection IC, driver IC and automotive IC, among others. Leveraging its solid R&D capabilities,
the Company is rooted in Wuxi and serves customers worldwide. Our customers include well-known brands such as Samsung, Xiaomi, Transsion, Midea, Haier and BYD,
and we have established long-term, stable partnerships with globally leading wafer fabrication, as well as packaging and testing enterprises.
Protection IC Power IC Signal chain IC Driver IC
ET84501 Synchronous Boost ETF0102 Ultra-Low-Latency
Converter ET61092 LED Matrix Driver
ET20170 Power Switch IC
Level-Shifter
ET5917 Highly Integrated PMIC ET75016 TOF Laser Diode Driver
ET9931 Overvoltage Protector ET85602 High-Performance
Ultra-low Power Consumption LDO Operational Amplifier
Series
Consumer Sector Automotive Electronics Industrial Sector
Corporate Culture
To fulfil the Company's mission and vision, ETEK has always upheld its core values, driven by continuous independent innovation, supported by a forward-
looking industrial layout, and connected through diversified collaboration. We have continuously deepened our efforts in R&D and steadily expanded our
product portfolio, making technologies more reliable, products of higher quality and value more enduring.
Mission
To provide creative chip solutions for an intelligent world and create value for customers, partners and society!
Vision
To become a globally leading and trusted innovative chip design company!
Values
Customer- Professio- Collabo- Mutual
Integrity
centricity nalism ration benefit
Provide customers Sincerity, honesty, Professional Shared goals, aligned Achieve success
with leading earnestness competence, actions, shared together and move
products professional responsibilities forward hand in hand
Good faith, conduct, mindset
Quality first, respond creditworthiness,
quickly trust
Development History March: ETEK completed the ISO26262 Road Vehicles Functional Safety Management
System Certification
October: The Chairman received the title of "National Science and Technology
Entrepreneurship Leading Talent"
January: ETEK obtained the ISO9001/2008 and ISO14001/2004 April: ETEK obtained T?V Rheinland ISO26262 Functional Safety ASIL D certification
certificates
June: ETEK established an RMB100,000,000 industrial fund, "Liding Fund" (99%
May: ETEK passed Samsung Electronics' QPA and QSAECO equity interest held)
audits, entering the Samsung supply chain December: ETEK increased capital in Liding Fund by RMB50,000,000,
May: ETEK passed Samsung Electronics' QPA and QSAECO
audits, entering the Samsung supply chain
May: Semiconductor, the Group-controlled subsidiary, established WS
Thong Kong Limited (100% shareholding), a new subsidiary in Hong Kong
July: The Chairman was awarded the title of "Jiangsu Province June: Semiconductor, the Group-controlled subsidiary, established
Science and Technology Entrepreneur" WSTENERGY(T) LIMITED (80% shareholding), a new subsidiary in Tanzania
Technology foundation Market expansion Industry advancement New journey
May: Wuxi ETEK Microelectronics Co., Ltd. was established
December: The Chairman was awarded the title of "Outstanding Entrepreneur in
Science and Technology Innovation" by Wuxi City
August: ETEK obtained the qualification recognition of "Integrated Circuit Design 2021
Enterprise" granted by the Ministry of Information Industry
June: ETEK was successfully listed on the SSE STAR Market
December: ETEK was awarded the title of "High-Tech Enterprise" in Jiangsu Province
July: ETEK was recognised as a national-level specialised, refined, featured and
February: ETEK received the certificate of "Top 10 Integrated Circuit Design
innovative "Little Giant" enterprise
Enterprise" in Wuxi City
December: After a shareholding reform, ETEK was established with a share capital of
RMB48.00 million
October: ETEK was recognised as the "Jiangsu Engineering Research Centre for Digital
Power Amplification IC"
Development Strategy and Presence
In 2025, ETEK took cultivation of new quality productive forces as its core strategic direction, focusing on three key dimensions: deepening technological expertise,
diversifying business expansion and fostering ecosystem collaboration. By driving efforts in both business and geographic expansion, we fully advanced strategy
implementation and business upgrading.
Business portfolio: Deepening engagement in core tracks, expanding into diversified scenarios
Core Sectors
Deepening cooperation with leading customers: We continue to consolidate our leading position in consumer electronics such as mobile phones and wearable
devices, and deepen strategic cooperation with leading customers such as Samsung and Xiaomi.
Advancing core technologies: We focus on technology iteration for core product lines such as power management, signal chain, drivers and discrete devices.
Strengthening product competitiveness: We steadily advance the integrated upgrade of monolithic power management integrated circuits (PMIC), and
strengthen the market competitiveness of our core products.
High-end Scenarios
Building a vehicle-grade cooperation ecosystem: We tap into high-end, high-value-added fields such as industrial electronics, communications base stations,
automotive electronics and healthcare, establish a complete automotive electronics certification system and a standardised vehicle-grade product reliability
testing centre, and achieve close cooperation with mainstream car manufacturers such as BYD.
Seizing policy and technology opportunities: We leverage policy- and technology-driven sectors such as AI terminals and electronic detonators to expand
incremental markets. The electronic detonators and wireless initiation system of our subsidiary Semiconductor successfully entered the Australian market,
sustaining breakthroughs in overseas business.
Product Matrix
Expanding into new product categories: We expand into new product categories such as high-precision Hall chips, and continue to improve the full-chain product
portfolio encompassing protection, power management, signal chain and driver ICs. Through technological innovation and product iteration, we meet the
personalised needs of customers across different industries.
Geographical footprint: Rooted in our local bases, reaching global markets
With its headquarters in Wuxi, Jiangsu at the core, the Company coordinated and integrated R&D, management and operational resources, leveraged the advantages of
the Wuxi National Integrated Circuit Industrialisation Base, and deepened collaborative development across the industrial chain. We established R&D centres and sales
branches in Shanghai, Shenzhen and other locations, precisely aligning with key electronics industry clusters such as the Yangtze River Delta and the Pearl River Delta, and
creating a regional development landscape driven by the dual wheels of R&D and the market.
The Company proactively advanced its global footprint by establishing a subsidiary in South Korea, continuously tracking frontier technology trends and enhancing our
service capabilities for international customers. During the year, the Group-controlled subsidiaries established subsidiaries in Hong Kong and Tanzania, improving our
overseas business network. Leveraging platforms such as international exhibitions and technical exchanges, we continuously deepened global cooperation, steadily
enhanced brand influence and market share, and promoted our products and technologies towards the global market.
Wuxi, China
ETEK Headquarters
South Korea
Marketing & Sales
Shanghai, China
R&D & Sales
Shenzhen, China Hong Kong, China
Marketing & Sales Investment & Sales
Tanzania
Manufacturing & Sales
Annual Achievements and Company Honours
Key Performance Indicators for the Year
Operating revenue Net profit attributable to Basic earnings per share Total assets
the listed company
Economic RMB RMB'0,000
RMB'0,000 RMB'0,000
Performance
GHG emission intensity within Total electricity Total energy
Total GHG emissions consumption
the operational boundary consumption
Tonnes of CO2 equivalent (tCO2e) tce
Environmental tCO2e/RMB million 10,000 kWh
Performance
Proportion of Total number Social insurance Total duration of
R&D expenses contribution coverage rate
R&D personnel of intellectual employee training
property rights of employees in the post
Social RMB'0,000 57.67 % 196 / 100 % 8,500 Hours
Performance
Number of the Documents disclosed Investor engagement
in compliance Investor research Major rule or law
Board of Directors' events held
receptions violations
meetings held
Governance 7 Times 45 3 6 Times 0 Case
Performance
Company Honours
Entrepreneurial Leader of the National Private Technology Enterprise of Jiangsu
Science and Technology Talent Program Province
WIND ESG A Rating Jiangsu Engineering Research Centre Technologically Advanced Service
for Digital Power Amplification IC Enterprise of Jiangsu Province
Award for Most Promising Strong Support Award Best Employer of the Year
Development Potential
Sustainability Management
ESG Management Structure
The Company has established a top-down, cross-departmental, multi-layered ESG management structure to ensure the efficiency and systematic nature of ESG
management. The Company has formulated the Working Rules for the Board of Directors Strategy and ESG Committee, clarifying a three-tier management system
comprising the Board of Directors, Strategy and ESG Committee and Strategy and ESG Working Group, to ensure the effective implementation and continuous
optimisation of the ESG strategy. By establishing and improving ESG management systems, optimising information disclosure mechanisms, and strengthening risk
management frameworks, the Company continually enhances the scientific and standardised nature of its ESG management.
Supervise ESG-related matters and listen to reports;
Board of Directors Review and monitor the formulation of ESG and climate-related policies and targets.
Decision- Review and approve the Company's annual ESG work and disclosure information for the ESG report, etc.
making Level
Identify and oversee ESG-related risks and opportunities that have a material impact on the Company's business;
Strategy and ESG
Committee Study and make recommendations on our ESG targets and strategic planning, review and submit our ESG work plan to
Management
Level the Board of Directors, and deliberate on other material matters related to ESG
Implement the Company's ESG management system and processes;
Strategy and ESG
Execution Level
Working Group Be responsible for tracking, collecting and organising annual ESG information, materials and progress to ensure the
authenticity, accuracy and completeness;
ESG Training
In terms of internal capacity building, in 2025, the Company carried out internal ESG training. The training is
closely aligned with the characteristics of the semiconductor industry and the Company's requirements for high-
quality development. The content covered the latest ESG development trends, industry best practices, rating
management standards and the Company's relevant improvement plans. Through a combination of topic-
based training sessions and guidance from external experts, we strengthened ESG strategy and risk management
and control capabilities for the management level, enhanced compliance management and green operations
awareness for core positions, and promoted ESG concepts and codes of conduct among employees. This drove
the deep integration of ESG requirements into the entire business process, including R&D, production, supply
chain and governance, comprehensively enhancing our sustainable development management standards and all
employees' ESG performance capabilities.
Due Diligence and Communications with Stakeholders
The Company has established diversified and regular communication channels to systematically identify and respond to the needs and expectations of its various
stakeholders. Feedback collected through these communications serves as an important basis for optimising ESG management practices and improving ESG
performance. In light of our actual business operations and the outcomes of communication with major stakeholders, we screened and compiled a list of key ESG
topics, and established and improved corresponding communication and feedback mechanisms to ensure timely and effective information transmission.
Stakeholder Key Topics of Concern Communication Methods/Channels
Shareholders and Product R&D and innovation Risk management Shareholders' Meeting Investor exchanges
investors
Product quality and safety Anti-commercial bribery and Results briefings Information disclosure platforms
Corporate governance Exchange interaction
Customer satisfaction surveys
Safety and quality of products and services
After-sales services and complaints
Customers Data security and privacy protection
Customer exchanges
Supply chain security
Product exhibitions and sales
Business ethics
Whistleblowing and oversight channels
Protection of employee rights and interests Internal management meetings
Employees
Employee training and development Communication meetings at all levels
Occupational health and safety
Open and transparent procurement
Innovation-driven
Suppliers Industry seminars and exchanges
Supply chain security
Supplier conferences
Promote industry development
Whistleblowing and oversight channels
Risk and compliance management Inspection by regulatory authorities
Government and
regulatory authorities Anti-commercial bribery and anti-corruption Government research activities
Climate change tackling Information disclosure platforms
Tax payment according to the law
Environmental information disclosure
Community and the Pollutant and waste management
public Active participation in volunteer activities
Contributions to the society and rural revitalisation
Community research
Climate change tackling
WeChat official account
Management of Material Topics
The Company, in accordance with the assessment methodologies of domestic and overseas disclosure standards, including Guidelines No. 4 of Shanghai Stock
Exchange for Self-regulation of Listed Companies - Preparation of Sustainability Reports, carried out the annual material topic survey work based on the process
encompassing topic identification, communications with stakeholders and materiality assessment. We shortlisted a total of 25 material topics and, taking into
account their degree of impact on business operations and stakeholders, prioritised them accordingly, ultimately forming this year's materiality matrix. The identified
material topics have been comprehensively addressed and disclosed in this Report.
Step 01 Step 02
Identify the background Create a list of topics
Business overview: We identify the Company's core business, strategic plans, Policies and standards: We take the 21 topics set out in the Guidelines issued
major products and their distribution and business relations by the Shanghai Stock Exchange as the basis for the list of topics, and refer
to international standards related to sustainability
Analyse the external environment: We identify relevant laws, regulatory policies
and industry standards Peer benchmarking analysis: Refer to ESG topic settings within the same
industry
Identify stakeholders: We analyse the impacts of the Company's business
on stakeholders, as well as the impacts, risks and opportunities faced by the
Company
Step 03 Step 04
Assess and determine the materiality of topics
Disclose information on the materiality of topics
Stakeholder engagement: Through multiple channels, we conduct questionnaire
Based on the topic assessment results, we develop a materiality matrix.
surveys among different stakeholders to assess material topics
For double materiality topics and topics that are financially material but
Expert analysis: We determine the final ESG topics based on the questionnaire not impact material, we make key disclosures in accordance with the "Four
survey results and the analyses by internal and external experts Elements" of the Guidelines issued by the Shanghai Stock Exchange.
Matrix of ESG Material Topics of ETEK in 2025
High
Environmental compliance management Climate change tackling
Materiality of the Company’s impacts on the economy, Pollutant discharge Waste disposal
Innovation-driven
Occupational health and safety
Supply chain security
Promote industry development
Protection of employee rights and interests Safety and quality of products and services
Clean technology opportunities Data security and customer
privacy protection
Anti-commercial bribery and anti-corruption Topics that are impact
Compliance and risk management Double-materiality
material but not
topics
Corporate governance financially material
Energy usage Water resources usage
Topics that are neither Topics that are
society, and environment
Circular economy
financially material nor financially material but
Conflict minerals Rural revitalisation impact material not impact material
Career development and training
Contributions to the society
Due diligence Environmental
Communications with stakeholders Social
Anti-unfair competition
Governance
Low Materiality to the Company’s financial performance High
Environmental Social Governance
Climate change tackling Innovation-driven Due diligence
Environmental compliance Protection of employee rights and interests Communications with stakeholders
management
Occupational health and safety Anti-commercial bribery and anti-corruption
Pollutant discharge
Career development and training Anti-unfair competition
Waste disposal
Contributions to the society Corporate governance
Energy usage Rural revitalisation
Compliance and risk management
Water resources usage Clean technology opportunities
Circular economy Promote industry development
Supply chain security
Safety and quality of products and services
Data security and customer privacy protection
Conflict minerals
ETEK Principles Ensures Steady
Progress and Long-term Success
ETEK has always placed corporate governance at the core
position. A standardised and effective governance system
is a key safeguard for the Company's steady development,
and also a fundamental prerequisite for reducing risks at
source. The Company strictly benchmarks against the legal
and regulatory requirements of the China Securities Regu-
latory Commission and the Shanghai Stock Exchange
regarding compliant operations, ensuring consistency
between system development and standardised implemen-
tation. At the same time, we adhere to the highest
standards of business ethics, continue to promote integrity
in our operations, uphold the Company's positive image,
and share the fruits of our growth with our shareholders.
ESG topics addressed: UNSDGs
Corporate Governance
Compliance and Risk Management
Anti-commercial Bribery and Anti-corruption
Anti-unfair Competition
Due Diligence
Communications with Stakeholders
Corporate Governance
ETEK has always regarded corporate governance as the foundation of its sound development. By strengthening top-level design, the Company has established a
scientific and standardised governance system, promoted the diversity of the Board of Directors, safeguarded investors' rights and interests, and comprehensively
enhanced its governance standards.
Governance Structure
ETEK strictly complies with the requirements of laws, regulations, and normative documents such as the Company Law of the People's Republic of China and
Securities Law of the People's Republic of China, and continuously improves its internal control and management systems. We have established a sound governance
structure, uphold a diverse Board composition, strengthen the transparency of information disclosure, improve investor communication mechanisms, and
continuously enhance our governance capabilities, providing a strong foundation for the Company's standardised operations and sustainable development.
The Company has established a series of systems and normative documents, including the Articles of Association, Rules of Procedure for Board of Directors' Meetings,
and Work Guidelines for Independent Directors , clearly defining the operating standards for the Shareholders' Meeting, the Board of Directors, the General Manager,
and specialised committees, clarifying the powers and responsibilities of the relevant bodies, and ensuring the efficient operation of the governance system.
Shareholders’ Meeting
Strategy and ESG Committee
Audit Committee
Board of Directors
Nomination Committee
Remuneration and Appraisal Committee
General Manager
Shareholders' Meeting
It is the Company's highest body. We strictly comply with the Company's rules and regulations, convening and holding shareholders' meetings on a regular basis
in accordance with the law, safeguarding shareholders' right to know and right to participate.
Board of Directors
The Board of Directors is the decision-making body for the Company's operations and management, and is accountable to the Shareholders' Meeting. Four
specialised committees have been established under the Board of Directors: the Strategy and ESG Committee, the Audit Committee, the Remuneration and
Appraisal Committee, and the Nomination Committee, providing professional advice and recommendations on major matters and enhancing the professionalism
and efficiency of deliberations and decision-making.
General Manager
The General Manager is responsible for the Company's day-to-day operations and management, implementing the strategies and plans formulated by the Board
of Directors, and ensuring that our operations progress in an orderly and efficient manner.
Shareholders' meetings
Strategy and ESG Committee's meetings
Board of Directors' meetings
Attendance of members at the Board of Directors' meetings 100% Nomination Committee's meetings 1
Number of proposals approved at the above meetings 47 Remuneration and Appraisal Committee's meetings 1
Diversity of the Board of Directors
ETEK continues to promote the diversity of the Board of Directors in terms of gender, industry background, professional capabilities, and other aspects. Currently, the
Board of Directors comprises nine directors, including three independent directors, accounting for 33.33%; two female directors, accounting for 22.22%. The members
of the Board of Directors have composite professional experience in areas including chip design, corporate management, financing and investment management
and law. In terms of professional knowledge, industry experience, and skills backgrounds, they present a diversified and complementary mix, together forming a
decision-making body with a comprehensive perspective and professional depth, thereby effectively enhancing the level of corporate governance and governance
effectiveness.
The Company's Board of Directors carries out regular appointments and re-elections in accordance with prescribed procedures. We are committed to striking
a balance between member stability and structural optimisation, and, through an efficient meeting mechanism, ensuring that all directors conduct in-depth
deliberation and decision-making on proposals, thereby safeguarding the compliance and rigour of the Company's major decisions. Independent directors strictly
maintain their independence and perform their duties diligently and conscientiously, playing a critical supervisory and advisory role in improving corporate
governance and protecting investors' rights and interests.
Structure of the Members of the Board of Directors
Member Structure Unit 2025
Number of members of the Board of Directors / 9
Independent directors / 3
Master's degree and above / 7
By educational background
Bachelor's degree / 2
Composition of the Board of
Male directors / 7
Directors By gender
Female directors / 2
Aged 50 and above / 5
By age
Aged under 50 / 4
Average tenure of members of the Board of Directors Year 3
Protection of Investors' Rights and Interests
The Company strictly complies with the Securities Law of the People's Republic of China, the Rules Governing the Listing of Stocks on the STAR Market of the Shanghai
Stock Exchange and the Work Guidelines for the Investor Relations Management of Listed Companies , as well as other relevant laws, regulations, and normative
documents. We have formulated the Management Policy for Investor Relations and the Management Policy for Information Disclosure, and established an efficient
and transparent mechanism for protecting investors' rights and interests, to ensure that all investors exercise their rights fairly and impartially, and to effectively
safeguard the legitimate rights and interests of minority investors.
Investor communication
To meet the diverse needs of investors, the Company has established comprehensive, efficient, and diversified communication channels to listen to investors' views,
promote mutual communication, and enhance investor confidence in the Company. The Company communicates and engages with investors through channels
including the official website, new media platforms, the Shanghai Stock Exchange's E-interactive platform, the investor hotline, and the investor relations email
address, using methods such as results briefings and on-site research visits. This helps investors keep abreast of the Company's developments and information in
a timely manner and fosters sound investor relations. The Company proactively communicates its governance standards, business progress, and strategic value to
investors, establishing a closed-loop management approach of disclosure, communication, and feedback, and continuously enhancing market recognition.
During the Reporting Period
Investor calls answered: 118
Number of investor communication activities: 3
Total number of investor communications and interactions across all channels: More than 150
Information disclosure
The Company fulfils its information disclosure obligations in accordance with the law, implements the principles of being truthful, accurate, complete, timely,
and fair, continues to standardise and enhance the information disclosure process, improves the quality, breadth, and transparency of information disclosure,
and fully safeguards investors' lawful rights and interests. The Company's information disclosure work is uniformly led and managed by the Board of Directors,
with the Board Secretary responsible to the Board of Directors for organising and coordinating the Company's information disclosure affairs. The Company
actively monitors media coverage and proactively verifies the accuracy of reported information.
Governance Structure for Information Disclosure
Board of Directors Board Secretary Securities Department
Leading and managing information disclo Organising and coordinating the Compan- Assisting the Board Secretary in handling
sure, with the Chairman being the primary y's information disclosure affairs as the pr information disclosure matters as the dai-
responsible person for information disclo imary responsible person for information ly operational department for information
sure. disclosure. disclosure.
During the Reporting Period
Periodic reports disclosed: 4
Interim reports disclosed: 41
Compliance and Risk Management
Compliant and prudent operations are the principled bottom line and basic requirement for the sustainable development of ETEK's business. The Company adheres
to a business philosophy of integrity and compliance, continuously improves risk management, enhances due diligence mechanisms, optimises internal controls, and
strengthens business ethics management.
Compliance Management
ETEK has established and improved a robust compliance management system, and continuously enhanced its governance system development, covering key areas
such as financial accounting, budget execution, procurement processes, tax treatment, and information disclosure. The Company adheres to the business philosophy
of honest operation, fulfils its tax obligations in accordance with the law, and, through effective oversight by the Audit Committee, ensures that all business activities
are conducted in a compliant and orderly manner.
Compliance system development
ETEK has established a comprehensive compliance management system and has formulated and continuously implemented a series of internal regulations, including
Articles of Association, Procurement Control Procedures, and Product Quality Control Procedures, comprehensively covering the key aspects of corporate governance
and operational management.
The Company attaches great importance to the development of a compliance governance system, deeply integrating the concepts of compliance and sustainable
development into the management level's daily operations. In 2025, the Company conducted a series of topic-specific training sessions covering a range of key areas,
including the Company's compliant operations, high-quality development, and employees' professional ethics, to ensure that management and employees developed
a thorough understanding of compliance obligations and behavioural boundaries.
Case Systematic development of compliance training programmes for directors and Senior Management
In 2025, we organised the Board of Directors, management level and personnel in key positions to participate in a range of
specialised compliance and development training programmes. These included dedicated training on corporate compliance
operations, market value management, and compliance performance of duties for directors, supervisors and senior management of
the listed company, continuously enhancing the governance level's compliance awareness and professional capabilities. Through
high-frequency, multi-dimensional systematic training, the compliance awareness and professional competence of management
were effectively enhanced, providing a solid foundation for the continued improvement of the Company's compliance governance
standards.
Senior Management
Compliance Training
Audit compliance
To promote the regulated implementation of internal audit work, enhance audit quality, and safeguard the lawful rights and interests of shareholders, ETEK has
formulated the Internal Audit Policy in accordance with the Audit Law of the People's Republic of China, the Guidelines No. 1 of Shanghai Stock Exchange STAR
Market for Self-regulation of Listed Companies - Standardised Operation, and other laws, regulations, and other normative documents, so as to evaluate and
oversee the effectiveness of the Company's internal control and risk management, the truthfulness and completeness of financial information, and the efficiency
and effectiveness of operational activities.
The Company's Board of Directors has established an Audit Committee, which is responsible for guiding the establishment and effective operation of the internal
control system, and for duties including oversight of financial statement disclosure and the internal control process. We also established an Audit Department to
carry out inspection and oversight of the authenticity and completeness of financial information, and the establishment and implementation of the internal control
policy. The Audit Department, as an internal audit body, is accountable to the Audit Committee and regularly reports its work to it.
During the Reporting Period, the Audit Department issued the 2025 Internal Control Evaluation Repor t. The Company had no material defects in internal control
over financial reporting. In addition to internal audit management, the Company also engaged an external independent third-party auditor to issue an external
assurance report on the financial and internal controls for the Reporting Period. For the 2025 annual report, an independent auditor with securities qualifications
issued an unqualified internal control audit report and a standard unqualified financial audit report. These were approved and reported by the Board of Directors
on April 10, 2026.
Internal control and compliance
In order to establish and improve, and effectively implement, the internal control policy and enhance the Company's risk management capability, we have formulated the Internal
Control Policy to strengthen internal control management, ensure the effective operation of internal control, and promote standardised operations. Meanwhile, the Company
continued to improve its internal organisational structure in line with the requirements of modern corporate management, and established a relatively scientific decision-making
system, execution system, and oversight system.
Organizational Structure for Internal Control
The Board of Directors is responsible for the formulation, implementation, and improvement of the Company's internal control policy, and regularly
conducts inspections and effectiveness assessments of the Company's internal control. The Board of Directors has established the Audit Committee,
Board of which guides the construction and effective operation of the Company's internal control system according to its responsibilities.
Directors
The Board of Supervisors is responsible for supervising the implementation of the Company's internal control policy. In case of any identified internal
control deficiencies, the Board of Supervisors may order corrective actions and report to the Shareholders' Meeting on the implementation of the internal
Audit control policy.
Committee
The Management is responsible for establishing and improving the internal control policy within the operational processes, promoting the comprehensive
implementation of the internal control policy, and checking how each department and unit formulates and implements specific internal control policies.
Management
Through multiple control measures, including segregation of incompatible duties, authorisation and approval, and financial system controls, we strengthen the implementation
and effective execution of internal controls. The Audit Department carries out annual routine internal control inspections and irregular special inspections, promptly identifies
deficiencies, and promotes rectification. The Company incorporates internal control and compliance implementation into the core performance appraisal indicators, takes
strict action against responsible persons who violate internal control requirements, and fosters internal control and compliance awareness among all employees.
During the Reporting Period
no material internal control deficiencies or non-compliance incidents occurred.
Tax compliance
The Company's tax management is centrally co-ordinated and overseen by the Finance Department, covering the establishment of a tax management system, identification
and assessment of tax risks, maintenance of the tax credit rating, organisation of tax training, management of tax materials and records, development of the tax team, routine
tax payment approvals, and participation in investment and operational decision-making, among other related work.
In terms of tax control, the Finance Department carries out front-end risk management through routine financial inspections, special tax audits, and daily filing review, among
other measures, and maintains communication and alignment with the tax authorities to ensure that filings are completed in a timely manner and in full in accordance with
regulations and that taxes are paid in compliance with the law.
During the Reporting Period
our tax assessment rating was Grade A, and we cumulatively paid RMB10.14 million in taxes.
Risk Management
ETEK attaches great importance to the critical role of risk management in safeguarding the Company's operations and development. To establish response measures for
risks and opportunities, clarify risk response measures and risk avoidance, and enhance our risk resilience, we have formulated Response and Control Procedures for Risks
and Opportunities as a guiding document for risk management. This sets out the classification of risks and opportunities, assessment processes, response mechanisms, and
oversight responsibilities, ensuring that risk and opportunity management operates in a standardised manner and safeguards the Company's sustainable development.
The Company has established a risk and opportunity assessment management mechanism, forming a governance structure led by the management representatives, organised
by the risk and opportunity assessment groups, and implemented by the Quality Management Department and other departments. This structure conducts continuous
monitoring of internal and external risks and opportunities relating to macro policies, operations, the market, and other areas, promptly identifies and assesses the various
risks and opportunities we face, and adopts necessary control measures.
Risk and Opportunity Management System
Management
Determining acceptable risk standards and policies, and regularly reviewing and updating risk and opportunity management
representatives
Organising and implementing risk and opportunity analysis and assessment
Risk and opportunity
Developing risk and opportunity response measures and implementing them
assessment groups
Organising the implementation of risk response measures and verifying their effectiveness
Establishing response and control procedures for risks and opportunities and maintaining them
Quality Management
Department Following up on the completion and effectiveness of various measures, and preparing the Report on Assessment and Analysis of Risks
and Opportunities
Assessing the risks and opportunities of quality and environment in the department, developing corresponding measures to avoid or
Departments
reduce risks, and implementing them item by item
At present, by assessing potential risks, the Company has identified risks across five aspects: laws and regulations, employee safety, property loss, work stoppages and
production shutdowns, and corporate image, and has formulated targeted improvement measures. To further address potential risks, the Company has established a
comprehensive risk management process, which helps us identify specific risks affecting the achievement of our objectives, achieve robust governance, and improve the risk
management system.
Risk Management Procedures
Step 1 Step 2 Step 3 Step 4 Step 5
Risk Risk Risk Supervision and
Review of risk
identification assessment response improvement of risk
management
management
Each responsible departme The severity and frequency Implementing departments Risk identification and asses- The Quality Management De-
nt establishes risk identifica- of identified risks are asses- are required to assess the id- sment activities aim to iden- partment organises periodic
tion methods, records and sed, and based on the asse- entified risks and, based on tify risks and comprehensiv- reviews of risks and opportu-
classifies potential risks, ssment, risk coefficients are the results of the assessme- ely consider effective respo- nities to verify their effectiv-
assesses their severity and determined, which then gui- nt, respond through risk acc- nse measures. When the risk eness.
freque-ncy of occurrence, de the selection of risk resp- eptance, mitigation, avoidan- coefficient is too high, avoid-
calculates risk coefficients, onse measures. ce, etc., in order to reduce or ance or reduction measures
and records them in the Tab eliminate the risks. are taken to minimise harm
le of Assessment and Analy- and loss.
sis of Risks and Opportuniti-
es. These are regularly revie-
wed and updated to compr-
ehensively identify risks and
provide a basis for risk resp-
onse.
Business Ethics
ETEK attaches great importance to business ethics, adheres to the principles of integrity and compliance, and integrates them into the entire process of corporate operations.
With a zero-tolerance attitude, we prevent commercial bribery and unfair competition, safeguarding a fair and just market order and our corporate reputation.
Anti-commercial Bribery and Anti-corruption
ETEK fully recognises the adverse impact of illegal acts such as commercial bribery on enterprises and strictly complies with laws and regulations, including the Anti-Money
Laundering Law of the People's Republic of China and the Interim Regulations on the Prohibition of Commercial Bribery. We have established the Management System for
Anti-Commercial Bribery. For personnel in key positions, the Company requires them to implement a system of integrity and probity commitments to ensure compliance with
professional ethics, and to sign the Anti-Commercial Bribery Commitment Letter, thereby strengthening the prevention of and oversight over commercial bribery.
The Company's General Manager's Office is responsible for overall coordination and implementation of management work related to anti-commercial bribery and anti-
corruption.
ETEK actively promotes the development of a culture of integrity and integrates the concept of integrity into the Company's day-to-day operations and management. The
Company extends its anti-bribery and anti-corruption efforts across the entire supply chain to ensure that all business activities strictly comply with relevant laws and
regulations. Through measures such as displaying promotional posters in office premises, and requiring employees to sign the Integrity and Compliance Commitment Letter,
we strengthened employees' anti-corruption awareness. The Company has established a multi-channel reporting mechanism to ensure the timely handling of reports. The
Company keeps strictly confidential the identity of whistleblowers and the matters reported, provides whistleblowers with necessary protection and appropriate incentives,
and encourages employees, suppliers, and other partners to participate jointly in anti-corruption oversight, further improving the internal oversight system and enhancing the
level of multi-stakeholder co-governance.
Supervision Measures for Anti-Commercial Bribery
We have established a reporting mailbox The Company's supervisory department regularly We conduct random interviews with middle and
for the prevention of commercial bribery, arranges for managers and key personnel to conduct senior management involved in the Company's
reporting hotline: 0510-85217779 integrity and honesty self-inspections, retaining business with suppliers to inquire whether they
records. For individuals with issues identified in self- are aware of the Company's Anti-Commercial
inspections, corrective action plans are created, and Bribery Commitment Letter with suppliers.
records are retained.
Anti-corruption and Anti-bribery Reporting and Complaint Procedures
Accept reports and complaints Conduct investigation and Review and propose Conduct classified
through channels verification opinions handling
Confirmed violation: Order the
Accept whistleblowing reports Conduct a special investigation, Submit the investigation results return of improper economic ga-
to the General Manager's Office ins and, depending on the circu-
and complaints via the compla- hear the statement and defence
mstances, impose criticism and
ints hotline/email. of the complained-against par for review and to propose specif
education/demotion and remov-
ty, and comprehensively collect ic handling recommendations. al from office/termination of the
relevant evidence. employment contract;
Suspected criminal offence: Dire-
ctly transfer the case to the judic-
ial authorities for handling in ac-
cordance with the law
Anti-unfair Competition During the Reporting Period
ETEK strictly complies with laws and regulations such as the Law of the People's
Republic of China Against Unfair Competition, and has consistently implemented 0 incidents related to commercial bribery occurred
the principles of fair and equitable competition. Internally, we insist that all
employees stick to honest operation in market competition and keep business
ethics firmly in mind. Externally, in our commercial dealings with competitors, During the Reporting Period
customers, and suppliers, we likewise ensure that product information is reliable
There were 0 incidents of litigation or major administrative
and trustworthy. For any acts that may undermine fair market competition, we
penalties arising from acts of unfair competition.
clearly define supervisory responsibilities, implement management requirements,
and safeguard an open and transparent market order.
ETEK Innovates the Future with Chips,
Advancing Through Technology
ETEK has always driven corporate development through
independent innovation, and comprehensively advanced
R&D of core technologies. The Company continues to
optimise its talent incentive system, extensively bringing
together top industry talent, and fully unleashing the
potential for technological innovation. We remain commit-
ted to high-standard control over product quality, dedicat-
ed to building a safe and sustainable supply chain, and
continuously improving our customer service mechanisms.
In doing so, we fulfil our commitment to creating value for
society through concrete actions, and actively help drive
China's semiconductor industry forward.
Material topics addressed: UNSDGs
Innovation-driven
Clean Technology Opportunities
Promote Industry Development
Supply Chain Security
Conflict Minerals
Safety and Quality of Products and Services
Data Security and Customer Privacy Protection
Innovation-driven Development
ETEK has consistently placed innovation at the core of the Company's high-quality development, taking the cultivation of new quality productive forces and
the shaping of new competitive advantages as the main strategic thread. The Company guides industrial upgrading through technological progress and serves
economic and social development through value creation, continuously enhancing the modernisation level of the industrial chain and value chain, and striving to
grow into an innovative high-tech enterprise with industry-leading influence and strong system-driving capability.
Governance
ETEK regards R&D innovation as the core engine of enterprise development, driving the Company to maintain its competitive edge. We implement full-process
project-based management for R&D projects, have established a comprehensive project R&D management system, and formulated policies such as the Guidance
on the Development Process for Chip Projects to standardise the initiation, implementation, and process control of R&D projects. We have also built a top-down
organisational structure to ensure the smooth advancement of R&D innovation projects.
Development of R&D system
The Company has established a sound governance system for the R&D organisation, forming an innovation governance mechanism that coordinates strategic
planning with implementation and execution. The Board of Directors plans the direction of R&D from a strategic perspective, ensuring that the R&D strategy is
highly aligned with the Company's long-term development goals and business strategy. The chip development team, as the core driving force for innovation, brings
together professional talent from multiple fields, including market, quality, design, and operations. Through close cross-departmental collaboration, we provide a
solid guarantee for continuous breakthroughs in R&D.
Key Roles and Responsibilities of the Development Team
Product Preparing the Chip Project Charter Material, proposing the project, conducting preliminary research, and submitting the materials for
manager project evaluation.
Project Drafting and compiling the project plan, requirements list, and TR nodes (technical review points) report; the primary person responsible
manager for project development, planning, and scheduling management; concurrently held by the System Engineer.
Developing and executing circuit quality inspection plans and verification plans, as well as conducting project quality control.
Quality
engineer
System Conducting circuit design, including architecture planning, solution development, new IP organisation, Tapeout (delivery to
engineer manufacturing), and designing report compilation.
Coordinating and collaborating on specific aspects of the project, providing continuous technical support.
Other
engineers
Transformation of technology achievements
The Company's transformation of technology achievements is led and organised by the R&D Centre, with coordination and cooperation from all departments,
and is subject to approval and oversight by the Board of Directors and the Finance Department, among others. We have established an internal innovation and
entrepreneurship platform to provide resource support to R&D personnel and project teams, and to encourage them to transform technology achievements
independently or through collaboration.
The Company's key priorities in technology R&D cover multiple areas, including power management, signal chains, and overvoltage protection (OVP), and we made
notable progress, in particular, in low-power and high-efficiency power management ICs. The Company is committed to driving innovation in driver IC technologies,
particularly their application in areas such as wearable devices and electronic door locks, with a focus on enhancing the low-power performance of our products.
Strategy
ETEK adheres to an innovation-driven development strategy, focuses on its core business of power management ICs, continuously strengthens R&D expenses and
team building, and deeply cultivates key technologies such as low power consumption and high integration. The Company strictly adheres to industry standards
and implements the R&D strategy of high performance, high quality, and high reliability. Through precise resource allocation and efficient transformation of
outcomes, we have built a technology-to-market business closed loop, consolidated our technology-leading advantages in niche segments, and systematically
identified R&D risks and opportunities, exploring key pathways to support the Company's steady growth.
Risks and Impacts
Probability of Impact Impact Potential
Risk Type Description Countermeasures
Occurrence Timeframe Dimension Financial Impact
Semiconductor industry technologi-
product R&D, and maintain normal produ-
Risk of lagging es are evolving rapidly. If our R&D fai-
Decrease in ct iteration to stabilise our core competitiv-
behind ls to keep pace with demand in em- Medium
High Technology operating eness.
technological erging markets such as AI and auto- term
revenue 2. Strengthen intellectual property planni-
iteration motive electronics, we will face a d-
ng to build robust competitive barriers aro-
ecline in competitiveness.
und core technologies.
as industrial and automotive electronics to
The top five customers account for
reduce customer dependency.
more than half of total sales; any c-
Risk of Decrease in 2. Deepen strategic cooperation with exist-
hanges in customer demand or su- Medium
customer base Medium Market operating ing leading customers to enhance custom-
pply chain strategies could have a s- term
concentration revenue er stickiness.
ignificant impact on the Company's
operational stability.
id response mechanism for customer dem-
and.
Intensified industry competition
and rapid technological updates
Risk of inventory Increase in ne inventory management.
mean inventories face significant p- Medium Short term Finance
impairment operating costs 2. Optimise the product life cycle and acce-
ressure from market price declines
lerate inventory turnover.
and impairment.
Opportunities and Impacts
Probability of Impact Impact Potential
Opportunity Type Description Countermeasures
Occurrence Timeframe Dimension Financial Impact
quirements of the industrial control and
Strong demand exists for independe automotive-grade markets, and acceler-
nt and controllable domestic indus- ate product certification.
Market trial and automotive electronics su- 2. Improve service quality, accurately id-
Increase in
opportunity pply chains. We ensure a stable su- entify potential customers, and refine
High term Market operating
of domestic pply for domestic enterprises thro- the project development process for lea-
revenue
substitution ugh alternative solutions, and our ding domestic customers.
high-performance chips are capable 3. Rely on the national-level specialised,
of substituting international brands. refined, distinctive, and innovative "Litt-
le Giant" qualification to enhance mark-
et recognition.
High R&D expenses have created te
chnical reserves such as multiple in-
vention patents, delivering a leadi- 1. Clarify the benefit distribution mecha-
Opportunity ng technological advantage in seg- nism for R&D projects to stimulate inno-
Increase in
of R&D mented areas, including power man- vation vitality.
Medium Medium term Technology operating
innovation and agement ICs. We have a first-mover 2. Strengthen the talent pool, expand
revenue
transformation -advantage in new tracks such as si- the R&D team, and reinforce the develo-
gnal chains, and can create value t- pment of talent pipelines.
hrough the transformation of R&D
results.
The global trend towards energy co- 1. Strengthen the R&D and promo-
Opportunity nservation and carbon reduction d- tion of high-efficiency, low-power-
for green and rove demand for high-efficiency po- Increase in consumption chips.
High Long term Market
low-carbon wer management ICs, and our prod- brand premium 2. Promote energy conservation and e-
development ucts aligned with the development mission reduction practices across prod-
direction of green industries. uct and production processes.
Strengthening R&D capabilities
The Company regards team development and mechanism building as its core strategy. By establishing a sound incentive system and talent development pathways,
we proactively respond to the national innovation-driven development strategy, providing solid talent assurance and technical support for long-term sustainable
development.
In terms of talent development, we systematically carry out professional technical training and capability-building programmes, and introduce the Employee
Competency Assessment Matrix Mechanism to strengthen the structured assessment of talent capabilities and expand career development pathways. The
Company's core management team structure is robust, with a clear division of responsibilities and efficient collaboration among members. While continuously
increasing R&D expenses, we also proactively expand our market team, committed to building a coordinated system with efficient linkage between R&D and the
market, thereby providing solid organisational assurance for the Company's long-term development.
In terms of innovation incentives, to stimulate the intrinsic motivation of R&D personnel, we have formulated and implemented the Policy on Organisational
Implementation and Incentive for Technology Achievement Transformation. This policy comprehensively considers factors such as sources of funding and the
contribution ratio, establishes a clear income distribution mechanism, and sets the income from the transformation of R&D achievements as a return source
independent of basic remuneration and performance incentives. In addition, through measures such as special subsidies for patents and layout designs, we
systematically safeguard the legitimate rights and interests of R&D personnel and other relevant participants, and provide R&D personnel with stable, long-term
innovation incentives.
The market team and the Shanghai R&D Centre expanded rapidly, strengthening our capabilities in technology R&D and enriching
our R&D resources.
The total number of R&D personnel is 331 R&D personnel now account for 57.67% of total employees
An increase of 38 compared to the previous year An increase of 1.22% compared to the previous year
R&D personnel
The proportion of R&D personnel has steadily increased
R&D Team Structure in 2025
Metric Unit 2025
Doctor's degree / 4
Master's degree / 104
R&D personnel by educational background
Bachelor's degree / 205
Below bachelor's degree / 18
Impacts, risks and opportunities management
ETEK adheres to a development model centred on independent research and development, has established a comprehensive risk management framework,
and systematically identified and addressed various risks and opportunities arising from research, development, and innovation. By continuously improving its
technology management, resource assurance, and process mechanisms, the Company enhances its risk prevention and control capabilities, and consistently
strengthens its independent innovation capacity and long-term competitive advantages.
Risk Identification Risk Assessment
In the project initiation and preliminary research stages, risks such as The Board of Directors and relevant functional departments, including
R&D, quality, and intellectual property are systematically identified, the Finance Department, review and oversee the identified risks.
combining the Guidance on the Development Process for Chip Through a tiered review mechanism, they clarify the likelihood of risk
Projects and departmental experience. occurrence, the degree of impact, and potential losses, and determine
the risk level.
风险流程
Risk Response Risk Monitoring
Project managers and quality engineers are responsible for developing We implement dynamic tracking of identified risks, and, based on the
and implementing quality inspection and verification plans. The Project Management Process, carry out full-cycle progress and quality
Intellectual Property Department strengthens risk prevention through control. By improving the system for the transformation of technology
patent applications and dedicated training. The R&D Centre takes the achievements and incentive schemes, we promptly adjust the R&D
lead in organising technical problem-solving and resource allocation. direction or reallocate resources to ensure that project objectives
The risk response process simultaneously follows Emergency remain aligned with the enterprise's overall strategy.
Preparedness and Response Procedures, ensuring timely and effective
response capabilities for emergencies.
Case Semiconductor's electronic detonators and wireless initiation system successfully entered the Australian market
Our subsidiary, Semiconductor, focuses on electronic control modules
and initiation control systems, and has gained an advantage in key
technologies such as ultra-long delay and long-distance communication.
In 2025, we, together with Xi'an Qinghua, completed the first overseas
trial blast of domestically produced electronic detonators and the MAXE
wireless cascading initiation system at a gold mine in Western Australia.
Through dual-blast-area cascading and comparative testing, we verified
the effects of refined blasting and improved mining efficiency, providing
a demonstration for Chinese electronic blasting technology to go global
and for subsequent large-scale application.
Blasting Test Site
Case Wuxi Semiconductor has safeguarded the Greater Khingan Range with technology for three consecutive years
On 29 March 2025, Semiconductor's proprietary special-purpose IC for
civil explosives was successfully applied in an ice-jam blasting operation
in the Tahe River section, Heilongjiang, serving the Greater Khingan Range
ice-flood prevention project for three consecutive years. Through a highly
reliable electronic detonator control module, it achieved precise blasting
initiation and reduced operational risks, enhancing the basin's flood control
safety assurance capability and demonstrating the value of innovative
applications of civil explosives technology in serving ecological security and
people's livelihoods.
Ice Jam Blasting
Case Highly integrated power switch IC enhanced system reliability and sustainability
The Company launched a highly integrated power switch IC, providing protection solutions
for SSDs, servers, industrial equipment, and high-speed USB interfaces. The chip integrates
programmable current limiting, reverse blocking, and multiple protection functions. It
supports wide-voltage input and high-current output, enhances high-voltage tolerance, and
delivers reliable performance for long-term operation. The chip effectively reduces energy
consumption and material use, lowers system failures and maintenance costs, and promotes
the development of power protection design towards a green, intensive, and sustainable
direction.
ET20170
Case Ultra-low-latency bidirectional level-shifter enable high-speed signal transmission for smart communication devices
We launched ETF0102, a two-channel automatic bidirectional level-shifter. It supports automatic
conversion across a wide voltage range, with nanosecond-level low latency and ultra-low
standby current. Without requiring a direction control signal, the design significantly simplifies
multi-voltage-domain systems. This chip adopts a small-size package and is suitable for
terminals such as smartphones, laptops, and smart wearables, improving signal integrity and
energy efficiency, and supporting the development of next-generation smart devices such as
ETF0102
Case High-current synchronous boost conversion provides an efficient power supply solution for portable devices
The Company launched ET84501, a fully integrated synchronous boost converter, achieving
wide input voltage, high output voltage and high current capability in a compact package.
Together with adaptive PFM/PWM control and multiple protection mechanisms, it delivers
both high efficiency and high reliability. This product is designed for space-constrained
devices such as high-end smartphones, tablets and mobile power banks, helping customers
enhance power supply performance and energy efficiency within a limited PCB area, and
driving portable terminals towards power architectures with higher power density and higher
efficiency.
ET84501
Metrics and targets
ETEK has established clear targets and plans around R&D innovation, with the aim of continuously consolidating its technological leading position in the
semiconductor sector, and steadily enhancing the Company's market competitiveness and industry influence.
Metric Target Unit 2025 2024 Growth Rate
To continuously
Annual R&D expenses RMB'0,000 19,432.26 14,055.93 38.25%
increase R&D expenses
Proportion of R&D expenses to To optimise resource
% 25.29 17.85 7.44%
operating revenue allocation
To consolidate the
Number of intellectual
intellectual property / 41 42 -2.38%
property applications
portfolio
Protection of intellectual property rights
The Company has established and continuously improved its intellectual property management system, and has obtained certification for the intellectual
property compliance management system. The Company focuses on improving intellectual property-related systems. Through measures such as systematic
patent applications and full-process technical protection, we effectively safeguard the uniqueness and value of our technological achievements and also lay
a solid intellectual property foundation for the Company's sustained technological innovation and development.
The Company has formulated and implemented the Enterprise Intellectual Property Management Manual, and established a management structure
featuring Management Representatives and Intellectual Property Specialists. A dedicated team is responsible for the acquisition, review, maintenance, and
management of intellectual property, promoting the systematic and standardised operation of the intellectual property management system.
Intellectual Property
Department
Intellectual Property Specialists Intellectual Property Specialists
Head of Department
(Invention Patents, Utility Model (Management Representative) (Integrated Circuit Layout Designs
Patents and Trademarks) and Software Copyrights)
Intellectual Property Intellectual Property Intellectual Property Intellectual Property
Specialist Specialist Specialist Specialist
The Company attaches great importance to the commercialisation and protection of intellectual property achievements. By incentivising the R&D team
to file patent applications in a timely manner, we effectively consolidate our technological achievements in legal form. At the same time, the Company
focuses on fostering a cultural atmosphere in which all employees respect and protect intellectual property, regularly organising dedicated intellectual
property training combining online and offline formats, continuously enhancing employees' intellectual property awareness and risk prevention
capabilities, and strictly adhering to compliance requirements.
During the Reporting Period
duration of 2 hours.
Intellectual Property Compliance
Management Certification Certificate
Metric Unit 2025
Number of newly filed intellectual property applications / 41
—New invention patent applications / 26
—New utility model patent applications / 2
—Number of new applications for integrated circuit layout-design protection design / 13
Number of newly granted intellectual property rights / 23
—New invention patent authorisations / 10
—New utility model patent authorisations / 4
—Number of newly granted integrated circuit layout design protection rights / 9
Total number of valid patents / 131
Number of valid patents per RMB million of revenue Case/RMB million revenue 0.17
Patent Certificates
As at the end of the Reporting Period
The Company owned a total of 196 valid intellectual property rights.
Certificate of Completion of Online
Training on Intellectual Property
Safety and Quality of Products and Services
ETEK remains committed to the bottom line of product and service safety and quality. Based on our quality management system and in conjunction with the
characteristics of the semiconductor chip business, we have established a full-process quality control system and continuously promoted quality improvement
and enhancement. Through stringent end-to-end controls, we continuously strengthen product reliability and service quality, providing customers with stable and
reliable products and services.
Governance
ETEK has always regarded quality management as the cornerstone of its sustainable development, fully
implementing the Product Quality Law of the People's Republic of China and the ISO9001 standard,
and establishing a quality management system covering the entire product life cycle. The Company has
formulated and implemented a series of management systems, including the Regulations on Quality
Objective Management, Product Testing and Assessment Process, Product Monitoring and Measurement
Control Procedures, Product Sampling Inspection Management Process and Procedures for Handling
Non-Conforming Products, thereby building a control mechanism covering all stages from R&D and
design, and production and manufacturing, to market delivery. We have obtained the ISO9001 Quality
management systems certificate and the ISO26262 Road Vehicles - Functional Safety certificate.
The Company has established a quality management organisational system under the overall coordination
of the General Manager, with multi-departmental collaboration among the Design Department, Project
Department, Operations Department, Quality Management Department, and other departments. Each
department has clearly defined responsibilities and strengthened collaboration, forming a quality co- ISO9001 Certificate and ISO26262 Road Vehicles -
governance network to enhance the effectiveness of quality control and consolidate the Company's market Functional Safety Certificate
image with quality at its core.
Strategy
ETEK attaches great importance to product quality and service safety. Based on the internal and external environment, we have formulated a quality
development plan. Through internal audits, management reviews, and data analysis, we continuously identify and improve potential issues in products and
services, and implement effective corrective and preventive measures. The Company has always closely monitored customer needs, adjusted quality objectives
and resource allocation, and ensured a rapid response to changes in the market. The Company regularly carries out quality training and communication
activities to enhance all employees' quality awareness and execution capability, providing a solid guarantee for the stability and improvement of product
quality.
The Company fully recognises the critical role that high-quality customer
service plays in market competition. To this end, we have systematically
developed and implemented a series of service management systems,
including the Customer Complaint Handling Procedures, the Service
Control Procedures, and the Customer Satisfaction Service Procedures,
to continuously optimise service processes and enhance customer
response efficiency and service quality.
Quality Training
Complaint Channels
Hotline：0510-85210118
Email：lull@etek.com.cn
Impacts, risks and opportunities management
ETEK has established a quality and safety management system covering the entire product life cycle, forming a systematic process for risk identification,
assessment, and control. From the perspective of product and service quality, we identify potential risks and opportunities for improvement across all stages,
and implement tiered assessments and dynamic management. Across all stages, including product design, development, production, delivery, and even end-
user use, the Company has established corresponding quality control checkpoints and risk management mechanisms. Through standardised processes and
continuous monitoring, we ensure that product quality from source to end user meets high standard requirements.
Quality Control Process
Quality planning
We formulate a detailed quality plan at the early stage of product development, clarifying quality objectives, acceptance criteria, and
inspection methods for each phase, thereby providing a full-process quality standard basis for product R&D and validation.
Control over production outsourcing
Through an institutionalised collaboration mechanism, the Company clarifies quality requirements with suppliers and implements joint
controls to ensure that outsourced manufacturing processes continue to comply with the Company's quality standards.
Quality inspection and testing
We have established a comprehensive laboratory testing system, equipped with high-precision reliability testing equipment, strictly
implemented standardised testing procedures, and carried out traceability and closed-loop handling for non-conforming products.
After-sales service
We have established a systematic after-sales service system. We respond promptly to customer feedback and complaints, continuously
track quality performance during product use, and incorporate customer feedback into the quality improvement cycle to drive
continuous optimisation of products and services.
Customer Return and Exchange Process and Compensation Process
Customer feedback Customer claim
Acceptance of claim
Acceptance of return
information
Claim investigation
N Return assessment
Replenishment Y Replenishment to Liability determination
required? customer
Y
N
Returned goods received
and recorded in the system
End
The Company’s liability The factory’s liability
Handle in accordance with the Procedures
for Handling Non-Conforming Products Compensation plan
negotiation
N Compensation The factory proposes a
Locked in the system? Normal shipment End request compensation plan
N
Approval
Y
Y
Compensation payment
End
Metrics and targets
In terms of quality objective management, core indicators such as the supplier product qualification rate, customer satisfaction rate, and number of customer
complaints are regularly compiled, tracked, and implemented by responsible departments, including the Quality Management Department and Sales
Department. The Company attaches great importance to the achievement of quality objectives. For items that fail to meet the standards, we require analysis,
corrective actions, and verification of effectiveness, and continuously promote improvements in the level of quality management.
Metric Target 2025 Achievement Status
Supplier product quality inspection pass rate ≥ 98% 98.5% Target met
Customer complaint handling rate 100% 100% Target met
Customer complaint resolution rate 100% 100% Target met
Customer satisfaction ≥ 90% 93% Target met
Case ETEK's Quality Month activities: "Small Things, High Quality"
In September 2025, ETEK carried out a series of Quality Month activities
under the theme "Small Things, High Quality". Through initiatives such as
collecting case studies of detail-related issues in day-to-day work that affect
work quality, organising a company-wide themed essay-writing activity, and
quality knowledge quizzes, we focus on enhancing all employees' awareness
of quality in detail and their participation in practice, further consolidating
the foundation of a company-wide quality culture.
"Quality Month" Activities
Promotion of Industry Development
ETEK attaches great importance to industrial synergy and industry exchanges, and actively participates in various exhibitions and seminars. We continuously
deepen cooperative interactions with industry peers, accurately grasp cutting-edge trends and market demand, absorb advanced technologies and
management experience, showcase our comprehensive capabilities, and enhance our brand influence. Relying on technological innovation and reliable product
quality, we continuously consolidate our core competitiveness. During the Reporting Period, we received a number of authoritative industry honours and
qualification certifications, gaining widespread recognition from the market and the industry.
In the future, ETEK will continue to adhere to the innovation-led development strategy, deepen technological deployment in key fields, expand the global
cooperation network, and strive to become a leading high-tech enterprise with international influence, contributing more to industry progress and social
sustainable development.
Executive Committee Member of the Jiangsu Member of the Jiangsu
Vice President of the Jiangsu Member of Jiangsu
Federation of Industry and Commerce (General Integrated Circuit Society
Semiconductor Industry International Service
Chamber of Commerce)
Association Outsourcing Enterprise
Association
Case Electronica China | ETEK's booth attracted significant attention
In April 2025, ETEK made an appearance at the electronica China, with a focus on showcasing its high-reliability and ultra-low-power product series. On the
first day of the exhibition, it attracted more than 300 industry clients and engineers for exchanges and interaction, demonstrating the Company's technological
accumulation and market influence in the integrated circuit sector. This participation not only presented the Company's latest technological achievements,
but also, through in-depth communication with industry clients and engineers, promoted technical exchanges and needs alignment across the upstream and
downstream of the industrial chain. The high-performance power management IC solutions exhibited by the Company provided more reliable technology
options for fields such as consumer electronics and industrial control, driving industry-wide technological upgrading and application innovation.
Electronica China
Case Korea Electronics Show (KES) ｜ ETEK exhibited its new low-light charging PMICs
In October 2025, ETEK made a major showcase of ET95640, a high-performance micro-light rechargeable
battery management IC, at the core booth of the KES. The chip can efficiently extract energy from high-
impedance weak energy sources such as photovoltaics (solar energy) and thermoelectric generators (TEG),
and supports charge and discharge management for multiple types of rechargeable batteries, including
lithium-ion, lithium polymer, and supercapacitors. It effectively addresses the power supply challenges
for devices in weak energy environments, can significantly extend the battery life of the IoT and wearable
devices, and enables long-term maintenance-free operation, leading the industry's energy management
upgrade with its core technological advantages.
Korea Electronics Exhibition
Supply Chain Security
ETEK attaches great importance to supply chain security management, and adheres to the principles of compliance, stability, and sustainable supply chain
development, building a secure and controllable supply chain system around our core chip business. Through stringent supplier onboarding, routine risk screening,
and end-to-end collaborative management, we continue to strengthen supply chain resilience, safeguarding the stable operation of our production and business
activities and the security of product supply.
Governance
ETEK regards supply chain security and stability as an important foundational component in ensuring product quality, delivery reliability, and the sustainable
development of the enterprise. The Company has formulated and implemented a series of policy documents, including Supplier Safety Management System,
Supplier Management Procedures, and Implementation Rules for Supplier Management System, thereby establishing a comprehensive management mechanism
covering supplier onboarding, performance evaluation, and dynamic withdrawal.
The Company assigns the Operations Department as the core implementation department for supply chain security management and control. In collaboration with
the Quality Management Department, Design Department, and other departments, the Operations Department has established a quality control system covering
the entire procurement process and the full product life cycle. This system effectively ensured the consistency and reliability of products, and earned the Company
long-term recognition and trust from customers.
Strategy
ETEK incorporates supplier management into the overall corporate strategic framework, systematically assesses each link in the supply chain, and proactively
identifies potential risks and development opportunities. The Company implements a transparent and standardised procurement model, working together with
supply chain partners to jointly build a responsible and sustainable supply chain system. By strengthening supplier onboarding, performance assessment, and
capacity building, we continue to enhance the overall quality level of suppliers, ensuring that procured raw materials and outsourced production processes meet
our high standards and achieve collaborative win-win outcomes across the value chain.
In addition, the Company focuses on collaborative development and joint capability building with suppliers. Through regular training, technical exchanges, and
information-sharing mechanisms, we promptly communicate our requirements in areas such as quality management and environmental standards. Together, we
safeguard product quality and supply stability, and promote overall progress and sustainable development across the industrial chain.
Onboarding management
During supplier onboarding, the Company has established stringent screening criteria to control supply chain quality at source. We deeply integrate environmental,
safety, and responsibility standards into supplier screening, evaluation, and day-to-day collaboration. For core suppliers of wafers, packaging and testing, we also
set higher thresholds, including assessments of industry experience, technical capabilities, and management systems. This system not only systematically enhances
supply chain transparency, quality stability, and operational resilience, but also, through deep collaboration with partners, jointly promotes green and safe supply
chain practices, reflecting the Company's firm commitment to a sustainable value chain.
Hierarchical management
ETEK has established a three-tier classification management system based on suppliers' business nature and scale characteristics, and implemented differentiated
onboarding and evaluation mechanisms to manage supply chain quality and risks in a systematic manner.
Supplier Management
Category 1 suppliers Category 2 suppliers Category 3 suppliers
Description Description Description
Key material (e.g., wafers) suppliers and supp- Companies providing professional services- Small-scale packaging and testing partners, t-
liers providing listed packaging and testing pr- such as photolithography, wafer testing, and rading suppliers, and providers of consumabl-
ofessional services medium-scale packaging and testing es not directly used in products
Evaluation and Confirmation Evaluation and Confirmation Evaluation and Confirmation
Suppliers with excellent reviews are directly in Suppliers whose samples and pilot producti Suppliers whose products meet the Company-
cluded in the qualified list. Qualified suppliers on batches have passed inspection and meet- 's requirements can be registered as qualified
are subject to re-evaluation as needed. Suppl- environmental protection requirements, and suppliers
iers requiring improvements are given a dead- who have been added to the list of qualified
line for remediation and re-evaluation. Supp- suppliers follo wing review by the Quality Ma-
liers who continuously fail to meet standards nagement
or are seriously unqualified are disqualified.
Supply chain risk and opportunity management
The Company has established long-term and stable cooperation with a number of high-quality partners, built a multi-source supply system, and effectively
diversified single-source supply risks. We implement differentiated controls tailored to the characteristics of different stages: The wafer manufacturing stage
focuses on supply diversity, technology maturity, and capacity assurance; the packaging and testing stage focuses on assessing technical capability, quality
control standards, and the stability of key resources. We establish a process anomaly monitoring mechanism, continuously track key quality indicators, collaborate
with suppliers to carry out root cause analysis and improvements, and transform risk identification into opportunities for quality enhancement and supply chain
optimisation.
Conflict minerals
ETEK follows internationally recognised standards for supply chain due diligence management and has made a clear commitment not to use minerals from conflict-
affected areas in our products. The conflict minerals we have defined mainly refer to metals such as gold (Au), tantalum (Ta), tungsten (W), cobalt (Co), and tin
(Sn) produced in mining areas within the Democratic Republic of the Congo and its nine surrounding countries that are controlled by non-governmental armed
groups or associated with human rights abuses. The Company has established a conflict minerals control mechanism and will continue to improve the supply chain
traceability system, working together with suppliers and industry partners to promote responsible mineral sourcing and jointly build a sustainable and compliant
supply chain ecosystem.
Conflict Minerals Management
Prohibit the use of miner- Require suppliers to com- Incorporate relevant requ- Continuously conduct su-
als from conflict-affected mit to not procuring or s- irements into the Supplier pply chain due diligence
areas in products and pr- upplying conflict minerals Code of Conduct, and pr- investigations, and progr-
oduction processes omote their communicati essively enhance transp-
on and implementation a- arency in mineral tracea-
cross the supply chain bility
Impacts, risks and opportunities management
The Company has established a systematic supply chain risk control framework, aiming to proactively identify, assess, monitor, and respond to various potential
risks in supply chain operations through a cross-departmental coordination mechanism, thereby safeguarding the continuity, stability, and resilience of the supply
chain.
Risk Identification Risk Assessment
We regularly conduct comprehensive scanning and review of all links We conduct comprehensive analysis, grading and prioritisation of
in the supply chain, including raw material procurement, supplier identified risks, assess their likelihood of occurrenc e and degree of
selection, logistics and transportation, warehousing management, and business impact, and provide a decision-making basis for formulating
production processes, to systematically identify potential risk points targeted response strategies.
and lay the foundation for risk management and control.
Risk Response Risk Monitoring
Based on the risk assessment results, we formulate and continuously We establish a routine supply chain monitoring mechanism. Through
enhance emergency response plans and business continuity plans. data tracking, regular reviews, and early warning indicators, we
Through multi-scenario drills and resource preparedness, we ensure continuously keep abreast of supply chain operating status, maintain
rapid response in the event of an emergency, thereby minimising the sensitivity to changes in risk dynamics, and achieve a shift from
risk of operational disruption to the greatest extent possible. reactive response to proactive management.
Metrics and targets
ETEK will take ensuring the supply chain security and stability as the core focus, continue to optimise the supplier selection and management system,
prioritise the selection of high-quality suppliers with international standard certifications, and steadily increase the proportion of suppliers with compliance
certifications. At the same time, we will deepen collaborative cooperation with upstream and downstream partners, strengthen supply chain resilience and
response efficiency, and jointly build a safe, sustainable, and efficiently coordinated industrial ecosystem.ETEK will take ensuring the supply chain security
and stability as the core focus, continue to optimise the supplier selection and management system, prioritise the selection of high-quality suppliers with
international standard certifications, and steadily increase the proportion of suppliers with compliance certifications. At the same time, we will deepen
collaborative cooperation with upstream and downstream partners, strengthen supply chain resilience and response efficiency, and jointly build a safe,
sustainable, and efficiently coordinated industrial ecosystem.
Metric Unit 2025 2024
Total number of suppliers / 120 109
China (including Hong
Kong, Macao, and 117 107
Number of suppliers by geographical region Taiwan regions)
Overseas suppliers 3 2
Supplier Integrity Commitment Letter / 32 18
Proportion of suppliers that have signed the Integrity Commitment Letter % 26.67 16.51
Number of suppliers that obtained the quality management systems certificate / 102 82
Proportion of suppliers that obtained the quality management systems certificate % 85 75
Number of suppliers that obtained the environmental management systems certificate / 75 62
Proportion of suppliers that obtained the environmental management systems certificate % 62.50 56.88
Data Security and Customer Privacy Protection
In the digital era, data security and customer privacy protection are of vital importance, and are also a key safeguard for the steady development of the
semiconductor industry. The Company has consistently positioned data security and privacy protection as a key priority in its business operations and
management, strictly complying with relevant laws and regulations as well as industry regulatory requirements, and has established and improved data full
lifecycle management and privacy protection mechanisms. Through improving our institutional framework, strengthening technical safeguards and internal
controls, we effectively ensure the security of customer information and business data, and continue to solidify the security defences underpinning digital
operations.
Governance
ETEK incorporates data security and privacy protection into the core scope of corporate governance, and has established a systematic governance structure
and management system. The Company has formulated and strictly implemented a series of policy documents, including the Cybersecurity Regulations,
Confidentiality Management Policy, Regulations on Development Systems and Information Management, and Information Security Management Rules , to
clarify the division of responsibilities and authorities, standardise data handling processes throughout the full lifecycle (collection, storage, transmission, use,
destruction), and implement stringent controls over network infrastructure, business systems, and third-party collaborations. This system combines institutional
constraints, standardised processes, and technical safeguards to implement the primary responsibility for information security, and extends this to supply chain
and partner management, thereby ensuring data and information security.
ETEK has established a data security management organisational structure with the Information Department as the central coordinating core. The Information
Department takes the lead in establishing data security policies, implementing technical safeguards, managing access controls, and conducting daily oversight.
It works in collaboration with all business departments to fulfil security responsibilities, thereby creating a management system characterised by clear division of
labour and efficient coordination to ensure the security and compliance of the Company's data assets.
Strategy
ETEK integrates data security and privacy protection into the Company's overall strategy, establishing a dynamic security governance framework with proactive
prevention at its core and emergency response as support. We systematically identify potential threats and weaknesses by conducting regular information
security risk assessments, and use the results as a basis to dynamically optimise our security strategies and control measures.
To address potential sudden security incidents, the Company has established a structured mechanism covering the full process of incident reporting, tiered
response, system recovery, and post-incident review, ensuring rapid response and effective control when security incidents occur, and minimising the impact on
business continuity and the rights and interests of relevant stakeholders to the greatest extent possible. In terms of technical protection, we deploy boundary
protection measures such as firewalls and introduce third-party threat analysis reports to strengthen threat intelligence analysis and proactive defence
capabilities. The Company carries out data security and information security training, systematically publicising the Confidentiality Policy, Cybersecurity
Regulations , key points for risk identification, and requirements for emergency response, continuously enhancing employees' security awareness and compliance
capabilities.
ETEK consolidates the foundations of information security through systematic daily training and operations and maintenance management. The Company has
established a regular back-up mechanism for critical information systems (such as the ERP system), carrying out scheduled daily data back-ups to ensure the
integrity and recoverability of business data, and providing reliable assurance for business operations.
Data and Information Security Measures
Information Security Management Rules
Focusing on full lifecycle data management, we have established a security control system covering all stages, including collection, storage, transmission,
use and destruction, clarifying security management requirements and technical measures to ensure that information security risks are identifiable,
controllable and traceable.
Cybersecurity Regulations
Focusing on the overall security of network infrastructure and application systems, we have implemented measures such as layered network protection,
stringent access control, comprehensive log audits, and real-time threat monitoring to systematically defend against cyber-attacks and continuously
reduce the risks of data breaches and business disruption.
Confidentiality Management Policy
For trade secrets, customer confidential information, and sensitive information, we have established a classified management system covering three
levels: Top Secret, Confidential, and Secret. Through comprehensive measures such as physical isolation, network controls, access restrictions, and
employee confidentiality agreements, we have built an end-to-end confidentiality defence line spanning the entire process from information creation and
transmission to storage and destruction.
Regulations on Development Systems and Information Management
Focusing on the R&D and design environment and data security, we ensure the integrity, confidentiality, and traceability of design systems and R&D data by
centralised control over key processes such as software installation, user access rights, data import and export, and regular backups.
Figure: Deployment of a Data Information Figure: Information Security Training
Security Firewall
Impacts, risks and opportunities management
Based on a systematised risk management and control process, the Company precisely identifies potential information security threats and deploys structured,
multi-tier response measures to ensure that information systems operate in strict compliance with established rules and standards, thereby effectively supporting
sustainable business development.
Risk Assessment Process
Risk Identification Risk Assessment
The Company conducts a comprehensive review of all types of We adopt a combination of qualitative and quantitative approaches
information assets, including data, software, hardware, services, and to conduct systematic assessments of identified risks. Taking asset
personnel, clarifying their security attributes such as confidentiality, criticality, threat frequency, and degree of vulnerability as core
integrity, and availability. On this basis, we systematically identify indicators, we apply a risk matrix model and quantified risk ratings
potential threats and inherent vulnerabilities, enabling the proactive through formulae, presenting in an intuitive manner the likelihood
discovery and precise identification of security risks. and impact of security incidents and providing a scientific basis for
decision-making on risk response.
Risk Response Risk Monitoring
We formulate differentiated response strategies for risks of We have established a routine risk monitoring mechanism to track
different levels. For unacceptable high risks, we adopt systematic the effectiveness of control measures implementation. Through
measures such as strengthening security controls, risk transfer, or weekly log audits, we continuously monitor key security indicators
risk avoidance; for low risks, we control them through continuous and dynamically optimise our strategies. In response to new risks and
monitoring and appropriate management to ensure rational resource major security incidents, we promptly conduct risk reassessments to
allocation and effective risk control. ensure residual risks remain controllable, and continuously improve
our information security management system.
Metrics and targets
ETEK has established clear management metrics and performance targets in the areas of data security and privacy protection, and systematically promoted
the development of an information security and compliance system. By continuously improving the management and control mechanisms and strengthening
technical protection, our data protection capabilities are effectively enhanced.
Information Security Objectives Progress During the Reporting Period Achievement Status
No major information security incidents occur No major information security incidents occurred Achieved
During the Reporting Period
Information security training conducted: 4 sessions
Number of participants in information security training: 40
Duration of information security training: 4 hours
Attack-and-defence drills conducted: 1
Level 2 Data Management
Capability Maturity Certificate
ETEK Moves Towards a Future
Led by Green and Low-Carbon
Development
Green and low-carbon development has become a global
consensus and an urgent requirement for the development of
the times. Against the backdrop of the national "Dual Carbon"
strategy, ETEK has upheld a long-term development philoso-
phy, steadily advanced the low-carbon transition of our own
business, and created lower-carbon, more environmentally
friendly products and services for customers. At the same
time, we proactively tackle climate change, continue to
strengthen environmental management, explore pathways for
water resource and waste recycling and reuse, enhance
resource-use efficiency, and advocate that all employees
practise low-carbon and environmentally friendly actions,
thereby effectively supporting the green and low-carbon
transition and development of society as a whole.
Material topics addressed UNSDGs
Climate Change Tackling
Environmental Compliance Management
Pollutant and Waste Management
Energy Usage
Water Resources Usage
Circular Economy
Climate Change Tackling
In recent years, climate change has been a major challenge jointly faced by the world, and proactively implementing climate policies and carrying out climate
actions have become an industry-wide consensus. ETEK is acutely aware of the significance of climate-related risks and opportunities to business operations,
and proactively responds to the impacts of climate change through measures such as green operations and the research and development of green products.
The Company improves its climate governance system, integrates green development throughout the entire process, continuously enhances climate adaptation
capabilities and business resilience, and empowers the low-carbon development of the industry through technological innovation.
Governance
Relying on its sustainable development governance structure, the Company has established a three-tier climate change governance system comprising the Board
of Directors, the management level, and the execution level, clarifying the core responsibilities of each level in climate-related risk identification, response, and
information disclosure. This has formed a climate-related risk prevention and control mechanism featuring top-down coordination and clearly defined powers and
responsibilities, enhancing the proactiveness and standardisation of climate action and ensuring the efficient implementation of relevant work.
Board of Directors
Reviewing and deciding on the Company's climate change tackling strategies, targets, and major matters
Decision- Overseeing the overall work on climate change tackling
making Level
Strategy and ESG Committee
Assessing the Company's climate-related risks and opportunities, and developing corresponding management measures
Management
Level Reporting to the Board of Directors on ESG climate-related work matters and summaries
Strategy and ESG Working Group
Execution Level
Implementing the Company's specific climate-related work
Strategy
Climate change may pose risks to the Company's business activities, including the frequency of extreme weather events, which may affect our operations and
employee safety. Climate change has also prompted the Company to explore potential innovation opportunities in the research and development of technologies
and process optimisation. Taking into account the characteristics of the semiconductor industry as well as our medium- and long-term development strategy,
the Company has formulated and implemented multi-tiered corporate strategies and internal management measures focused on both mitigating and adapting
to climate change. We have preliminarily identified the potential impacts of climate change-related risks on the Company's finances and, within the existing
operational management framework, have adopted corresponding risk response measures to enhance the overall resilience of the business and its sustainable
development potential.
Identification of Climate Change Risks
Impact Financial Impact
Risk Type Potential Risk Analysis Response Strategies
Timeframe
Physical risks resulting from climate change
Operating sites located in coastal areas such as Wuxi,
Acute risks
Shanghai, and Shenzhen, as well as partnered wafer fa- We inspected and reinforced office facilities, developed emerg-
(increase in
brication plants and packaging and testing plants in the ency response plans, and strengthened monitoring of extreme
extreme weather Operating costs +
supply chain, may experience delays in chip design and Short/Medium weather forecasts to ensure a rapid response;
events caused by Asset value -
R&D progress, supply chain production disruptions, or- term We optimised logistics plans, selected partners with emerge-
climate change, Operating reven
impediments to logistics and transportation due to ex- ncy transport capabilities, and ensured the transportation of
such as typhoons ue -
treme weather, directly affecting the delivery cycle o-f chip samples and finished products.
and floods)
core products such as power management chips.
Chronic risks
Rising temperatures will increase demand for water su- We conducted regular inspections, testing, and maintenance of
(such as
pply and cooling, resulting in higher energy consumpti- Operating costs + existing equipment to ensure stable operation. For new projec-
rising average Long term
on; increased energy loads will intensify pressure on p- Asset value - ts, we selected and procured low-energy-consumption equip-
temperatures and
ower lines and shorten equipment service life. ment.
sea-level rise)
Transitional risks resulting from climate change
Global and domestic climate-related regulatory require-
Compliance reviews were implemented by the Strategy and
ments have become increasingly stringent. We need to
ESG Committee and the Strategy and ESG Working Group;
continuously monitor compliance developments; failu- Short term and No material impa
In accordance with international standards and domestic regu-
re to adapt promptly to the latest regulations may res- medium term ct
latory requirements, we continued to disclose our climate cha-
ult in non-compliant information disclosure and affect
nge response in the ESG report.
compliant operations.
Policies and laws
Stricter domestic and international greenhouse gas co-
ntrol requirements, including carbon footprint manag- We promoted emission reduction initiatives and enhanced em-
Medium term,
ement for exported products, have imposed higher sta- Operating costs + issions management at both the organisational and product le-
long term
ndards on corporate emission reduction and emissions vels.
management.
Product technology innovation is increasingly oriented We increased R&D expenses and talent pool, carried out
towards high performance, environmental friendliness, industry-academia-research collaboration, and proactively de-
Technology Long term R&D costs +
and low carbon emissions, which increases R&D costs- veloped products with high performance, low-carbon and gre-
while also raising the difficulty of R&D. en innovative concepts.
We promoted the development of green products, and integra-
Market customers' preferences are gradually shifting to Operating costs +
ted sustainability concepts into the Company's business opera-
Market wards power control chips with higher energy efficien- Long term Operating reven
tions. At the same time, we increased green and low-carbon re-
cy and better energy-saving performance. ue -
quirements for upstream suppliers' products.
We actively participated in environmental protection activities,
Stakeholders have increasingly high expectations of co-
Operating costs + and continuously strengthened environmental information dis-
rporate environmental responsibility, and the occurren-
Reputation Long term Operating reven closure and showcased our achievements through ESG reports,
ce of negative environmental incidents would damage
ue - official WeChat accounts, and other channels, thereby enhanci-
the corporate brand image.
ng our corporate image.
Identification of Climate Change Opportunities
Opportunity Impact Financial
Potential Opportunity Analysis Countermeasures
Type Timeframe Impact
We increased R&D expenses, and designed power manageme-
Develop high-performance, high-quality chip pr-
Product and Medium/ Operating nt ICs with lower power consumption and higher efficiency;
oducts to meet market demand in high-end fields
service Long term revenue + We established laboratories, and strictly implemented mana-
such as artificial intelligence and the IoT.
gement of product reliability testing.
Energy conservation, carbon reduction, and sustai
Short term, We strengthened the green and low-carbon attributes of our
nability have become important development tren-
Changes in market medium Operating products, expanded our customer base, and captured mark-
ds across all industries, and market demand for gr-
demand term or long revenue + et opportunities by developing ultra-low power consumption
een, low-carbon products and solutions is increasi-
term and high energy conversion efficiency products.
ng.
We built a dual system of "Green Supply Chain + Technologic-
While strengthening our capability to respond to c-
al Resilience", prioritising the selection of low-carbon and co-
limate change risks, we proactively empower and Medium
Supply chain Operating mpliant wafer, packaging and testing suppliers, continuously
guide supply chain partners to carry out climate ac- term, long
resilience revenue + iterating core green chip technologies, reducing the impacts
tions, jointly enhancing the overall resilience of the term
of climate-related risks, and enhancing the enterprise's over-
industrial chain.
all risk resilience.
Impacts, risks and opportunities management
ETEK recognises that climate-related risks and opportunities would become an important part of corporate risks, incorporates climate change tackling measures
into its long-term development strategy, includes climate-related risk assessment into the corporate business continuity risk management process, regularly
identifies and assesses climate-related risks and opportunities that may affect business operations, and has formulated appropriate response measures. We
have preliminarily identified physical risks and transition risks arising from climate change, and climate-related opportunities. To optimise resource allocation,
we actively evaluate the identified climate change risks and formulate effective management measures to ensure that the identified climate change risks are
effectively controlled.
Climate-related Risk and Opportunity Management Process
Identification of Climate- I?mpact Analysis of Responses to Climate-
related Risks and Opportun ?Climate-related Risks and related Risks and Opportun
ities Opportunities ities
In accordance with climate- For the various risks and??opportu- Based on the analysis results,
related guidelines, and based on nties identified, we assess their p- we make targeted adjustments
internal and external conditions, otential impacts on our chip R&D, to our strategies and formulate
the industry, and our actual cir- supply chain delivery, and long- response measures, proactively
cumstances, identification is co- term development from the pers- seize climate opportunities, and
nducted across three key dime- pectives of business operations, f- ensure that risks are controllab-
nsions: physical risks, transition- inancial performance, and others. le and opportunities accessible.
risks, and climate opportunities,
with a primary focus on covera-
ge.
Metrics and targets
ETEK actively responds to the national "3060" strategy and strives to promote our own green development and drive the industry's green and low-carbon
transition. The Company has set carbon reduction targets in step with national efforts to achieve carbon peaking and carbon neutrality. The Company relies on
its internal carbon emission monitoring platform and follows international standards such as ISO 14064, ISO 14067, and ISO 14040 to continuously quantify and
monitor carbon emissions. Strategic directions are adjusted in a timely manner based on data analysis.
Metric Unit 2025 2024
Scope 1 GHG emissions ① tCO2e 90.62 100.78
Scope 2 GHG emissions ② tCO2e 1,061.29 1,036.94
Total GHG emissions within the operational boundary tCO2e 1,151.91 1,137.72
GHG emission intensity within the operational boundary tCO2e/RMB million revenue 1.50 1.44
① emission factors for gasoline, natural gas, and liquefied petroleum gas are sourced from the National Greenhouse Gas Emission Factor Database.
② GHG emissions are calculated based on the National Greenhouse Gas Emission Factor Database issued by the Ministry of Ecology and Environment. The average CO emission
factor for electricity in Jiangsu Province is 0.5827 kgCO e/kWh.
Environmental Compliance Management
Environmental management systems and policies
The Company continues to improve the development of its environmental management systems, and
strictly complies with the requirements of relevant laws and regulations such as the Environmental
Protection Law of the People's Republic of China, the Law of the People's Republic of China on
Environmental Impact Assessment. It has formulated and implemented management policies, including
the Identification and Assessment Procedures for Environmental Factors and Environmental Incidents,
and deeply integrated the green and low-carbon concept into corporate operations and strategic
planning.
The Company has established a management structure under which the General Manager is the primary
person responsible, and all departments collaborate in implementation, continuously enhancing the
level of green operations. The Company develops targeted emergency response plans and regularly
organises employee training, continuously enhancing environmental compliance awareness and risk
response capabilities across all employees.
During the Reporting Period, we held the ISO 14001 Environmental management systems certificate,
and there were no instances throughout the year of violations of environmental protection laws and
ISO 14001 Environmental Management Systems
regulations or of receiving environmental protection administrative penalties. Certificate
Response plan for environmental risk emergencies
In order to respond rapidly to sudden environmental pollution or ecological damage incidents, as well as environmental pollution caused by terrorist
incidents, take orderly action, control the situation, handle and dispose of the incident properly, and reduce harm and losses, the Company carries out in depth
environmental risk identification and protential hazard inspections, and regularly conducts emergency response training to address various types of emergency
environmental incidents that may occur.
Energy Conservation and Emission Reduction
ETEK adheres to the philosophy of green and low-carbon development, integrates energy conservation and emission reduction requirements into the entire
process of corporate operations, starts with standardised waste management and efficient resource utilisation, reduces the environmental footprint of production
and operations by improving management systems and optimising operational measures, and, at the same time, relies on technological innovation to explore
clean technology development opportunities. With two-way efforts of green upgrading on the product side and energy conservation and emission reduction
on the operational side, we fulfil our responsibilities for energy conservation and emission reduction, and promote the synergistic advancement of corporate
development and ecological protection.
Waste and Pollutant Management
ETEK is a typical fabless IC design company and is not directly engaged in product manufacturing. It therefore basically does not generate industrial waste gas
during operations. As a result, the environmental impact from waste and pollutants arising from our operational process is relatively small. However, we still
attach great importance to waste and pollutant management, strictly controlling the waste and pollutant discharge in our day-to-day operations, and reducing
the environmental impact caused by our own operations.
Waste management
The Company strictly complies with the Environmental Protection Law of the People's Republic of China, the Law of the People's Republic of China on Prevention
and Control of Environmental Pollution by Solid Waste and other relevant laws and regulations, and has established the Management Regulations on Solid Waste
to ensure compliance in waste disposal and make every effort to minimise impacts on the environment.
ETEK's production and operations basically do not generate hazardous solid waste. Only a small amount of copper-containing waste circuit boards is generated
during R&D design and product testing. General solid waste mainly consists of non-hazardous waste such as domestic refuse. The Company attaches great
importance to environmental management. The Comprehensive Department and the Operations Department jointly manage waste, and have formulated a
hazardous waste emergency contingency plan and an annual training plan. Each department has established solid waste registers, with designated personnel
responsible for storage, oversight, and inspection. Compliant waste materials are disposed of through bidding in accordance with relevant regulations, ensuring
that the entire process for solid waste is standardised and compliant.
Waste Type Measures
We established designated waste storage areas equipped with features such as rain-proofing, leak
prevention, spill containment, and loss prevention, and strictly stored non-hazardous solid waste
Domestic waste, spent pen refills, in accordance with regulatory requirements
Non-hazardous waste
kitchen waste, etc.
Domestic solid waste was uniformly collected and treated by the industrial park
Household hazardous solid waste was specially treated by qualified entities
Recycling was arranged centrally by the Comprehensive Department and handed over to entities
with the requisite treatment qualifications for processing.
Copper-containing waste circuit
Hazardous waste
boards, discarded ink cartridges, etc. We strictly implemented the Measures for the Management of Hazardous Waste Transfer Forms,
filled out the transfer forms accurately, and reported them in a timely manner to environmental
authorities, ensuring data accuracy, consistency, and traceability
Waste Discharge and Consumption Status
Metric Unit 2025 2024
Volume of non-hazardous waste generated Tonne 6.80 6.20
Volume of hazardous waste generated Tonne 0.01 0.159
Total waste discharged Tonne 6.81 6.359
Total recycled and reused waste Tonne 2 1.159
Total waste discharged per RMB million of revenue Tonne/RMB1 million 0.01 0.01
Wastewater management
The main source of the Company's water use is domestic water. The Company strictly complies with the Integrated Wastewater Discharge Standards and the
Wastewater Quality Standards for Discharge to Municipal Sewers. We have also formulated the Management Regulations on Wastewater Discharge to implement
standardised control over all types of wastewater and sewage. To ensure compliance with wastewater quality discharge standards, our wastewater is discharged
in accordance with regulations via the industrial park's domestic wastewater pipelines, thereby ensuring environmental compliance. The Company regularly
engages professional agencies to carry out wastewater testing and issue reports, ensuring that water resource management complies with relevant requirements,
and progressively promotes reductions in pollutant discharges and improves the recycling and reuse rate.
Wastewater Management
Wastewater Collection and Control Measures Methods for Reduction,
Monitoring Process Recycling or Reuse
Type
We regularly engage third- Sewage was collected We put up promotional slogans
Domestic
party organisations each- through the municipal and posters nearby to advocate-
sewage
year to conduct sampling network and treated at water conservation and reduce
tests of discharged water- the municipal wastew- the discharge of domestic waste-
quality ater treatment plant water
Water Quality Monitoring Report
Noise management
The Company strictly implements the Class III requirements of the Emission Standard for Industrial Enterprises Noise at Boundary and formulated the
Management Regulations on Noise Emission to manage internal and external noise pollution. To ensure effective noise control, the Company regularly monitors
noise-polluting equipment and external noise sources. The Company regularly commissions a higher-level testing organisation to conduct noise monitoring, and
carries out servicing and maintenance of the relevant equipment to reduce noise impacts and ensure compliance with environmental protection requirements.
Noise Management
Noise Sources Collection and Monitoring Process Control Measures
We carried out technical modifications to
noise-generating equipment and performed
Noise from the Company's The Comprehensive Department monitors and regular maintenance and servicing
equipment operations records noise
For new projects, we gave priority to low-noise
equipment with low pollution
A superior testing organisation is engaged to
Noise from areas adjacent to High-noise production sites adjacent to
conduct noise testing for the areas adjacent to
the plant site residential areas must have enclosed hoarding
Noise Monitoring Report
the plant premises
Optimisation of Resource Usage
ETEK attaches great importance to energy and resource management, and strictly complies with the Energy Conservation Law of the People's Republic of China,
the Water Law of the People's Republic of China , standardising the use of energy and water resources. Through a systematic management model, we continue to
promote technology upgrades, optimise energy use, and improve resource usage efficiency.
A resource conservation management system has been established, led by the General Manager and executed collaboratively by all departments. Responsibilities
are clearly defined to ensure implementation. Through a systematic evaluation mechanism, we regularly monitor energy consumption, continuously optimise
management strategies, and improve resource efficiency.
Energy and Water Resources Management Structure
Managing and supervising the Consolidating the Company- Analysing energy usage and pr-
Company's energy and water- 's overall energy consumption oviding data support to optim-
Comprehensive resources, regularly organising Finance data, formulating energy cons- Operations ise energy conservation object-
energy-saving training, and pr- ervation targets, and submitti- ives.
Department Department Department
omoting best practices in ener- ng them to the General Manag-
gy conservation. er for approval.
Energy management
The Company strictly complies with the Energy Conservation Law of the People's Republic of China . We have established an efficient energy management system
and designated the Comprehensive Department as the responsible department for the Company's energy management. By improving the energy management
system and optimising energy use processes, we steadily advanced the implementation of energy-saving and consumption-reduction targets. In strict accordance
with relevant rules and regulations, the Company carries out regular maintenance and upgrades to office facilities and equipment, actively introduces advanced
energy-saving technologies and equipment, and comprehensively improves energy usage efficiency.
The Company's energy consumption mainly comprises petrol and purchased electricity, used for the Company's daily operations. In response to these energy
consumption characteristics, the Company has formulated and implemented a series of energy conservation measures to improve energy usage efficiency.
We have established a centralised energy management system to monitor energy consumption in real time. Through
in-depth data analysis and optimisation, we continuously enhance energy usage efficiency.
Strengthening the Management System
We have strengthened equipment life-cycle management, clarified equipment use standards, established a regular
inspection mechanism, and promptly advanced the replacement and upgrading of inefficient equipment.
We have introduced energy-saving equipment, such as selecting transformers with lower no-load loss (iron loss) and
Implementing Energy-Saving Technology Upgrades
load loss (copper loss) and higher efficiency, to reduce energy losses.
We have conducted education and training on energy conservation and environmental protection, incorporating energy
Raising Energy Conservation Awareness conservation and emission reduction knowledge and operational requirements into routine training programmes.
Regular awareness campaigns were carried out to enhance employee participation and practical capabilities.
Energy Consumption
Metric Unit 2025 2024
Gasoline Tonne 28.99 32.14
Purchased electricity 10,000 kWh 182.13 173.46
Total energy consumption tce 266.77 260.99
Energy use intensity tce/RMB million revenue 0.3471 0.3314
Water resources usage
The Company has established and improved a routine water management mechanism. Based on the use characteristics of various types of water resources, the
Company has scientifically defined recycling pathways and standardised water use behaviour at the policy level to reduce water resource waste. The Company's
water resources are primarily sourced from municipal water supply, with water consumption scenarios spanning the full production and operations process,
including process water, cleaning water, fire protection water, and employee domestic water use.
To strengthen water resource conservation and efficient use, we have installed flow restrictors on taps in
public areas such as pantries and toilets, and promoted the water use practice of taking water as needed and
turning off the tap promptly, thereby enhancing water-saving awareness among all employees. In addition, the
Comprehensive Department regularly reviews water use and investigates potential risks of water wastage, and,
through streamlined and targeted management measures, effectively fulfils our commitments to green and
low-carbon development and water resource protection.
Water-Saving Signage
Water Resources Consumption
Metric Unit 2025 2024
Total water consumption Tonne 4,480.50 4,160
Total water consumption intensity Tonne/RMB million revenue 5.83 5.28
Green offices
ETEK has consistently integrated the concept of green office practices into its day-to-day operations. Through measures such as refined energy management,
reduced paper consumption, and resource recycling, we have continued to reduce the environmental footprint of office operations, supporting the
achievement of our corporate sustainable development goals.
In terms of energy management, we strictly implement the air-conditioning temperature setting standards. During summer, the air-conditioning temperature
is set at no lower than 26° C, and during winter, no higher than 20° C. We have installed prominent energy-saving signage in office areas to remind employees
to pay attention to energy conservation. The Company has established a sound electricity management system, promoted refined electricity use management
in office areas, and achieved paperless office operations, thereby reducing energy consumption and carbon emissions at source.
Projection for Paperless Office Power-Saving Signage A/C Temperature Not Lower Than 26° C
Clean Technology Opportunities
ETEK has integrated the concept of clean technology throughout the entire process of product R&D, production and operations, and industrial collaboration,
with semiconductor technology innovation at its core, driving green and low-carbon development. Relying on our technological strengths in power management,
signal chains and analogue chips, we upgraded to high energy-efficiency and low power-consumption products, reducing end-user energy consumption and
environmental burden at the source. During operations, the Company deepens the application of clean technology such as energy conservation and consumption
reduction, and resource recycling and reuse, enhancing greening and sustainability. Through technological empowerment and practical implementation, ETEK
supports downstream industries and the industrial chain in achieving energy conservation and consumption reduction, and the efficient use of resources, thereby
continuously creating environmental and social value.
Green products
ETEK has been actively developing high-energy-efficiency, low-power products for the green and low-carbon transition. These products can be widely applied in
consumer electronics, industrial control, and IoT devices, effectively reducing the operating power consumption and standby losses of end devices. By improving
power conversion efficiency and optimising power consumption management, we help customers reduce energy consumption and support the achievement of
society-wide carbon emissions reduction targets.
Reduced use of raw materials
The Company applies the principles of streamlining and intensive utilisation from the chip design stage. Through advanced packaging technologies and system-
level optimisation, we have achieved higher performance integration within a smaller footprint, reducing the use of silicon materials and packaging materials
per unit product. Meanwhile, the Company continued to promote material recycling and waste management in the production process, reducing resource
dependence and material waste in production at the source.
Case Highly integrated power management integrated circuits (PMICs)
It is a power management IC designed specifically for compact devices such as cameras. Simplifying circuit
design and reducing the number of components, it reduces the consumption of raw materials such as
tin, copper, and plastics at the source. Large-scale application helps alleviate resource pressure across
the industrial chain and promotes the electronics manufacturing industry towards more sustainable
development.
ET5917
Circular economy
The Company actively practices the circular economy philosophy and
promotes internal resource recycling management to drive an efficient and
low-carbon operating model. Through maintenance and reuse initiatives,
equipment such as fans, UPS units, motors, and IGBTs is repaired to maximise
component reuse and reduce resource waste. The Company encourages the
conservation of office resources by collecting used batteries, setting up a
reused paper collection point, promoting paper recycling, defaulting printers
to double-sided printing, and reducing colour printing to improve resource
utilisation efficiency.
Use of Recycled Paper Used Battery Recycling
ETEK Pools Strength to Achieve
Win-Win Development
ETEK upholds the core philosophy of people-centredness
and is committed to building an ecosystem that achieves
comprehensive win-win outcomes for employees, the
industry, and society. In terms of employee management,
we continue to strengthen safety and occupational health
management, focusing on fostering a safe, mutually
supportive, and harmonious working environment. The
Company attaches importance to employees' career devel-
opment, and has established clear promotion pathways to
facilitate employees' growth and development. In terms of
social responsibility, we uphold the purpose of delivering
love and hope, proactively strengthen communication and
cooperation with the community, support rural revitalisa-
tion, and promote common social development.
Material topics addressed UNSDGs
Protection of Employee Rights and Interests
Occupational Health and Safety
Career Development and Training
Protection of Employee Rights and Interests
ETEK has always regarded the protection of employees' rights and interests as a core cornerstone of corporate sustainable development. We strictly comply
with the Labour Law of the People's Republic of China and other relevant laws and regulations. Guided by the principles of fairness and inclusiveness, equal
rights and responsibilities, and care and empowerment, we have established a full-dimensional rights and interests protection system covering compliant
employment, democratic communication, and remuneration and benefits. From improving our recruitment system to eliminate discrimination and strengthening
diversified grievance channels, to establishing a scientific remuneration structure and enriching non-remuneration benefits, and further to enhancing incentives
for the transformation of technology achievements and caring for employees' physical and mental wellbeing, the Company has comprehensively safeguarded
employees' lawful rights and interests and development needs, fostered a workplace ecosystem that respects diversity and is fair, just, harmonious, and mutually
beneficial, and supported employees and the Company in growing together in step.
Compliant Employment
ETEK firmly believes that equality and respect are the cornerstone of the employment relationship. Based on our actual operational and development needs,
and on the basis of our existing internal policies, we further supplemented and improved the Employee Recruitment Management Policy in 2025, in order to
comprehensively ensure the legality and compliance of the entire recruitment process. We have established a sound internal employment management system
framework, which systematically regulates the entire process of employee recruitment, onboarding, confirmation of employment, job transfer, and separation.
We clearly prohibit the employment of child labour, and have established the "principle of equity" to combat discrimination.
Inclusive recruitment: The Company adheres to the recruitment principle of eliminating barriers and ensuring equal opportunities, and has established a multi-
dimensional interview and comprehensive assessment system. With the degree of alignment between job requirements and competency as the core selection
criterion, we exclude interference from irrelevant factors such as gender, age, and ethnicity, ensuring that all job applicants enjoy equal opportunities to compete.
Elimination of child labour: We strictly comply with relevant laws and regulations, including the Law of the People's Republic of China on the Protection of
Minors and the Provisions on Prohibition of Child Labour, and have established the Procedure for Rescuing Child Labour and Protecting Minor Workers. We
implement rigorous checks at every stage, from CV screening and background verification to hiring approval, to resolutely prevent the employment of child labour
and any form of forced labour.
Employee Recruitment and Turnover Rate in 2025
Total number of employees 574 Proportion of female employees34.15% Number of employee turnover 37 Employee Turnover Rate6.03%
Newly hired employees By gender By education By rank
Number of employees hired during Male employees Associate degree and below Senior management
the Reporting Period
Female employees Bachelor's degree Middle management
Number of newly recruited fresh
graduates Postgraduate and above Frontline employees
Equity, diversity and inclusion: The Company is committed to fostering a workplace environment that respects diversity and is open and inclusive, and to
proactively attracting diverse talent from different backgrounds. Throughout the full employee career development cycle, including recruitment, promotion, and
performance appraisal, we explicitly prohibit any form of discrimination and harassment, and eliminate unfair treatment based on factors such as gender, age,
ethnicity, and religious belief. We have established the Anti-Discrimination Management Procedures to effectively safeguard the lawful rights and interests of all
employees and their career development opportunities.
Gender diversity
All statutory rights and interests of female employees are fully implemented, with practical support provided through the installation of dedicated
mother-and-baby facilities, among other measures.
Age diversity
A talent team with diverse age profiles is being built; channels for talent recruitment are continuously broadened to support the inflow of fresh
talent; experienced core employees are valued; and an age-diverse talent pipeline is being established.
Ethnic diversity
A respectful and inclusive multicultural atmosphere; we proactively recruit employees from different ethnic backgrounds, stimulate diversified
thinking and innovation vitality within the team, and ensure that employees of all ethnic groups enjoy equal career development opportunities.
During the Reporting Period
Male employees accounted for 65.85%, and female employees accounted for 34.15%
Ethnic minority employees accounted for 1.74%
Employees with disabilities accounted for 0.17%
Return-to-work rate after parental leave reached 100%
Number of employee discrimination incidents was 0
Remuneration and Incentives
ETEK employs a hybrid compensation model that combines job position, performance, and capabilities to encourage employees to continuously improve their
job performance, work results, and personal contributions. At the same time, the Company ensures that compensation aligns with its strategic goals and is
closely linked to employees' actual performance through a flexible salary adjustment mechanism.
Base salary: Calculated based on national laws and the Company's specific situation, serving as the foundation for
overtime pay.
Compensation Job salary: Divided according to employees' job ranks, consisting of a base job salary and a performance-based job
structure and salary. The performance salary is allocated based on individual performance evaluations.
components Allowances: Including seniority allowance, attendance allowance, high-temperature allowance, night shift allowance,
and others. These are determined based on the employee's position and work conditions.
Bonuses: Comprising individual rewards and year-end performance bonuses.
Salary Annual adjustments are made based on the Company's economic performance, labour costs, and strategic planning,
adjustment as well as considering employees' job positions, performance, and development potential. Immediate adjustments
mechanism are made for employees based on work performance, position changes, and personal contributions.
Performance
Incentives are divided into three categories: commendation, merit citation, and promotion. Rewards are granted to
evaluation employees who demonstrate outstanding performance in safeguarding the Company's reputation and excelling in
and incentive task completion, cost saving and innovation, and the protection of the Company's property.
mechanism
Care for Employees
Upholding a people-centred management philosophy, the Company integrates care for employees into corporate culture development. Drawing on dimensions
including physical and mental health, family support, and cultural enrichment, the Company has built a comprehensive, multi-tiered employee care system to
create a warm, harmonious, and inclusive working environment for every employee.
Employee benefits
To fulfil our corporate social responsibility and enhance employees' sense of well-being and belonging, ETEK, in addition to its compensation and performance
system, has established a comprehensive, multi-tier non-monetary benefits assurance system. This system focuses on employees' full-scenario needs across work
and life, providing all-around care and support for employees and their families.
In terms of statutory benefits protection
the Company strictly complies with relevant national and local regulations by paying pension insurance, medical insurance, work injury
insurance, unemployment insurance, maternity insurance, and housing provident fund contributions for all employees, effectively fulfilling its
responsibilities as an employer and safeguarding employees' basic rights and interests.
In terms of care
the Company is committed to promoting the holistic well-being of our employees, encompassing both physical health and cultural fulfilment,
cultivating an inclusive corporate culture through diverse employee care initiatives, such as festive celebrations, birthday parties, and
tailored benefits for female employees. We strengthen team cohesion through team-building activities, improve dining benefits to safeguard
employees' day-to-day meals, and, in conjunction with health check-ups, annual travel and other initiatives, help employees maintain a good
physical and mental condition.
In terms of incentives and special care
the Company has provided housing allowances and other essential living benefits, and also set up honours and material incentives such as
the Best New Product Award, Outstanding Employee Awards, and Invention Patent Awards, recognising employees' innovation achievements
and work performance. For communities with special needs, we provide targeted support such as subsidies for persons with disabilities,
demonstrating the Company's humanistic ethos and sense of social responsibility.
Birthday Celebration Badminton Game Taiqing Friendship Basketball Game
Travel Annual Commendation Meeting Shenzhen Subsidiary Relocated to New Premises
Hiking Medical Examination Reports Shanghai Subsidiary's Team-Building Event
Care for women
ETEK always regards safeguarding the rights and interests of female employees and empowering women's career development as a core corporate social
responsibility practice. Through a sound institutional system and caring, heart-warming initiatives, we have built an inclusive and equal workplace environment.
The Company has formulated dedicated policies such as Management Procedures for Female Employee Protection, fully implementing statutory rights, including
maternity check-up leave, maternity leave, breastfeeding leave, and parental leave. It clarifies that female employees' wages and bonuses will be paid as normal
during childbirth, ensures their smooth return to their original positions after childbirth, and eliminates concerns about career development. Meanwhile, the
Company has set up a caring mother-and-baby room in the office area to provide female employees during breastfeeding with a private, warm, and comfortable
space for breastfeeding and rest, effectively addressing childcare challenges in the workplace.
The Company has long practised the concept of care for women. The Women's Day benefits have become a normalised mechanism: not only are customised
shopping cards distributed to all female employees, but, if it falls on a working day, they can also enjoy a half-day of paid leave. Through these flexible and heart-
warming dual benefits, we convey respect for the festival and the Company's warmth, enabling women's strength in the "chip" era to receive full respect and
support at the Company.
Democratic Communication
ETEK attaches great importance to the protection of employee rights and interests. Through system development, we have strengthened the protection of rights
and interests, formulated the Management Procedures for Employee Feedback, Suggestion, Grievance Handling and Response, established a standardised
employee grievance and complaint mechanism, and clarified that the Comprehensive Department and management representatives take the lead in coordinating
and managing complaint matters. To ensure smooth communication channels and enhance employees' sense of participation, the Company has established
multiple democratic communication pathways, such as complaints by letter and complaints made through direct face-to-face meetings. This fully mobilises
employees' initiative, encourages employees to actively participate in corporate operations and management, and supports our decision-making in steadily
advancing towards a more scientific and democratic approach.
Diverse grievance channels
Written Correspondence Channel Department Channel Representative Channel
Employees may communicate their opinions or sug-
Employees may submit appeals in the form of lette- Employees may submit complaints in person direct- gestions to employee representatives. Within seven
rs by posting them in the Company's designated su- ly to the management personnel of their departme- working days from the date on which the employee-
ggestion boxes. The relevant departments will resp- nt. The management personnel will provide an imm- representatives formally relay the relevant concerns
ond to the appeal within seven working days from ediate response based on the urgency and complex- to the Comprehensive Department, the correspondi-
the date the boxes are opened. ity of the request. ng responsible department will provide a clear resp-
onse.
Complaint handling and feedback
The Company's responsible department shall respond to all complaints on the spot or within five days, in written form using the Employee Complaint Handling
Record. The Employee Complaint Handling Record, after being drafted, shall be reviewed by the department manager and submitted to the Comprehensive
Department for verification as to whether the content of the response complies with the relevant provisions and regulations. After passing verification, it shall be
submitted to the General Manager for signature. Depending on the circumstances, the Company will decide whether to post the Employee Complaint Handling
Record on the notice board or deliver it to the complainant in person.
The Comprehensive Department summarises and archives the comments and suggestions collected each year, and selects those who proposed constructive
suggestions that were adopted, as well as those who have made contributions by offering advice and recommendations for the Company's development. At the
year-end gala, appropriate material rewards are given to the selected individuals mentioned above, thereby continuously motivating employees' enthusiasm and
initiative in participating in corporate management.
Employee satisfaction surveys
The Company regularly conducts employee satisfaction surveys and, at the end of each During the Reporting Period
year, carries out a comprehensive annual satisfaction survey to systematically collect
employees' feedback and opinions on aspects including the working environment,
career development, remuneration and benefits, and management mechanisms. In In 2025, the overall employee satisfaction rate reached 93.26%.
response to improvement areas identified through surveys, the Company organises
relevant departments to formulate action plans and follow up on implementation,
translating employee voices into concrete management improvement measures.
Career Development and Training
ETEK regards employees' career development and training as a core pillar supporting its sustainable development. Upholding the philosophy of being people-
centred and empowering growth, the Company has established a systematic, multi-level, whole-cycle training and development system, helping employees and
the business to grow together and providing sustained impetus for the implementation of its strategy and technological innovation.
Governance
ETEK has established a governance system for vocational training and development with clearly defined responsibilities and authorities and standardised
procedures, providing a robust institutional safeguard for the orderly advancement of all work. With the Training Management Policy and the Selection,
Development, Employment and Retention Mechanism as the core, the Company supplemented, revised and improved the Training Policy in 2025, and
concurrently formulated the Personnel Competency Matrix Assessment Mechanism and the Employee Promotion and Transfer Management Policy, thereby
establishing a closed-loop system covering all stages of training management, competency assessment and promotion and development, ensuring that training
and development work is carried out in accordance with established rules and in a standardised manner.
To further identify the impacts, opportunities and related risks of career development and training on the Company's talent pipeline building, and to enhance
organisational core competitiveness and talent resilience, ETEK continues to track trends in industry talent demand, directions of technological iteration and
organisational development objectives. We systematically analyse risks and transformation opportunities relating to talent development, pipeline building and
incentive mechanisms, and formulate targeted response strategies covering the optimisation of the training system, the improvement of promotion pathways
and the retention of core talent, striving to fully translate talent development potential into momentum for the Company's sustainable growth.
Business
Management Comprehensive
Departments
Level Department
Responsible for approving the annual tr Coordinate and oversee company-wide- In alignment with job requirements and
aining plan and major promotion mat- training and career development, take business development plans, propose
ters, overseeing the implementation of the lead in compiling the Summary of training needs, collaborate in conduct-
the training and development system, Annual Training Plans, and be respons- ing departmental internal training and
and ensuring the use of relevant resou- ible for the formulation and revision of job skills training, and participate in e-
rces. policies, integration of training resourc- mployee competency assessments and
es, evaluation of training effectiveness, promotion recommendations.
and the organisation of employee pro-
motion review, among other tasks.
Strategy
Risk Identification and Response for Career Development and Training
Risk Type Description of Potential Risk Impact Timeframe Financial Impact Countermeasures
We established a dynamic mechanism to rese-
The training content is misaligned
arch training needs, and tailor courses in line
with business needs, resulting in a w-
with business directions such as technology-
aste of resources and employee capa-
Operating costs + R&D and market expansion; set up a core tale-
bility development that does not mat-
Talent turnover rate nt pipeline reserve plan, and accelerated tale-
Risk of talent ch our strategy; insufficient core tech- Medium term, and
+ nt development through industry-academia-
development nical talent pool constrains R&D and long term
Core competitivene research collaboration and an internal mento-
market expansion; inadequate transp-
ss - ring system; disclosed promotion criteria and
arency in the promotion mechanism-
processes, and conducted quantitative asses-
gives rise to employees' sense of unfa-
sments based on the Personnel Competency
irness.
Matrix Assessment Mechanism.
We improved incentives for the transformation
of technology achievements and the remun-
Intense industry competition led to
eration and benefits system, directly linking tr-
the loss of key technical talent, affec-
aining outcomes to promotion and remunera-
ting the continuity of R&D and the ac-
R&D cost + tion. We strengthened corporate culture deve-
cumulation of technological achieve-
Risk of talent retention Long term Risk of talent retenti lopment and enhanced employees' sense of
ments. The incentive mechanism lac-
on+ belonging through team-building activities
ked attractiveness, making it difficult
and the development of career pathways. We
to motivate core employees to comm-
established an early-warning mechanism for
it to long-term service.
the loss of key talent, and promptly optimised
retention strategies.
We adopted diversified training formats comb-
ining internal and external training, with com-
A single training format resulted in lo-
plementary online and offline delivery, incor-
wemployee participation and made it
porating hands-on drills and project-based pr-
difficult for training outcomes to be-
Risk of training Return on training actice. The Comprehensive Department coor-
effectively implemented; insufficient Medium term
implementation efforts - dinated cross-departmental training needs in
cross-departmental coordination in t-
an overarching manner, established a closed
raining affected the enhancement of
loop for training effectiveness assessment and
the organisation's overall capabilities.
feedback, and incorporated assessment resul-
ts into employee performance.
Identification and Response to Career Development and Training Opportunities
Opportunity Type Description of Potential Opportunity Impact Timeframe Financial Impact Countermeasures
A systematic training and career develo
We deepened the implementation of the Traini-
pment system can enhance employees'
ng Policy and the Selection, Development, Emp-
professional capabilities and work effi-
Operating revenue loyment and Retention Mechanism, and tailored
ciency, strengthening R&D innovation
Talent efficiency Medium term and + tiered training programmes for different roles
and market responsiveness; the retenti
enhancement opportunity long term Core competitivene such as R&D and marketing. We optimise talent
on of key talent can accelerate the tran-
ss+ promotion pathways and provide diversified de-
sformation of technological achieveme-
velopment routes for technical and managerial-
nts, thereby building a competitive adv-
talent.
antage.
Cross-departmental training and talent We implemented cross-department job rotation
mobility can break down departmental- and project collaboration-based training to pro
Operational efficien
Organisational silos and enhance organisational colla- mote knowledge sharing; leveraged the Person
cy+
collaboration boration efficiency; improvements to Medium term nel Competency Matrix Assessment Mechanism
Business expansi
optimization opportunity the employee competency matrix can- to precisely match talent with business needs,
on+
strengthen organisational agility and s- supporting expansion into new fields such as in
upport diversified business expansion. dustrial electronics and automotive electronics.
A well-developed career development We deepened collaboration with higher educati
system can enhance our employer bra- on institutions such as Southeast University and
nd influence and attract high-calibre ta- Beijing University of Posts and Telecommunica-
Talent attraction+
Brand and ecosystem lent to join us. University–enterprise co- tions to jointly establish talent development ba-
Long term Collaboration oppo
opportunity operative training can integrate univer- ses. We showcased talent development achieve-
rtunities+
sity resources and build a collaborative ments through industry exhibitions and technic-
innovation ecosystem spanning indust- al exchange activities, and enhanced employer-
ry, academia, and research. brand awareness.
Open training platform
ETEK adheres to the principle of hiring people based on both virtue and talent and always views employee training as a crucial strategy for enhancing the
Company's core competitiveness. We have established the Training Management Policy and offer systematic, tiered, and diverse training to help employees
quickly master job-related skills, understand the corporate culture, and continuously improve service levels and management abilities. This fosters the shared
growth of both the Company and its employees.
To ensure the systematisation and effectiveness of training, the Company has built a training system that covers all employees, with training categorised by levels.
We use performance evaluations, surveys, departmental interviews, and other methods to accurately identify training needs for each position and cultivate well-
rounded and outstanding talent.
Design, processing,
Management personnel Technical professionals Internal auditors of systems production, and quality HR and financial staff
control personnel
Modern business mana- Specialized techniques, System-related knowle- Refresher training on pr- HR and financial knowle-
gement theories, organi- fundamental theories, dge, auditing skills, and ofessional knowledge re dge commensurate with
sational decisionmaking and business practice. system-related laws and quired for implementing their roles.
skills, and strategic man- regulations. certification systems.
agement of the Compa-
ny and its systems.
Performance Management Training Onboarding Training Team Building Workshop
Risks and opportunities management
The Company has established a closed-loop mechanism for risk and opportunity management. Focusing on key areas including alignment between training and
business needs, talent pipeline development, transparency of promotion mechanisms, and retention of key technical talent, we carried out risk identification
and assessment, formulated targeted response measures, and continuously tracked and optimised through approaches such as training effectiveness surveys,
reviews of talent pool, promotion satisfaction surveys, and talent mobility monitoring, thereby achieving a positive interaction between risk prevention and
control and corporate development.
Risk Identification Risk Assessment Risk Response Risk Monitoring
ed with business needs, result- between training and needs is hensiveness and accuracy of on training effectiveness, colle-
ing in wasted training resourc- relatively likely to occur, which training needs assessments, ct employees' feedback on trai-
es and low employee participa- may result in a low return on establish a dynamic matching ning content and format, and a-
tion; training efforts and affect em- mechanism between training ssess the alignment between t-
ployees' capability enhanceme- content and business needs, raining and needs;
lent pipeline lags behind the riculum; 2. We conduct quarterly revie-
pace of corporate growth, with 2. The risk of insufficient core ws of progress in talent pipeli
an insufficient talent pool for- talent pool has a long impact 2. We clarify promotion requi- ne development, analyse the tal
key positions; cycle, which may constrain the rements and assessment crit- ent pool for core positions, and
Company's long-term develop- eria, disclose promotion proc- pro-mptly adjust development
is not sufficiently transparent, that promotions are fair, just,
which may trigger employees' 3. Risks relating to the transpa- and transparent; 3. We establish an employee p-
perception of unfairness; rency of the promotion mech- romotion satisfaction survey m-
anism may affect employee s- 3. We improve the incentive echanism to track the transpar-
affects corporate technological ging, thereby affecting team s- outcomes to promotion and tion process;
innovation and business conti- tability; remuneration, enhancing key-
nuity. technical talent's sense of b- 4. We continuously monitor the
may lead to the loss of techn- reducing the risk of turnover. analyse the reasons for turnov-
ological achievements and inc- er, and optimise talent retention
rease recruitment and training- measures.
costs.
The Company's end-to-end training process strictly follows the standardised steps of "needs assessment, course customisation, training
delivery, effectiveness assessment and records management", ensuring that training is precisely aligned with employees' needs and
corporate development objectives:
Needs assessment
We comprehensively collect training needs for different positions and levels through departmental submissions, employee
questionnaires, performance analysis and other methods
Course customisation
We develop tailored training programs for different groups, including general employees, professional and technical personnel and
middle- and senior-level management personnel
Training delivery
We adopt a combination of internal and external training, complemented by online and offline approaches to carry out regular training
Effectiveness assessment
We evaluate the training effectiveness through various formats such as written examinations, practical operations and project practice.
The assessment results are incorporated into the basis for employee performance and promotion
Records management
We establish electronic records for employee training and career development, systematically recording information such as training
participation assessment results and competency assessment reports to provide data support for employees' career planning
Metrics and targets During the Reporting Period
ETEK has established a clear indicator system arou
nd vocational training and development, clarifying the number of employees trained reached 704, with a total duration
annual targets and assessment criteria, and continu
ously improving work effectiveness. of 8,500 hours.
Occupational Health and Safety
ETEK strictly adheres to relevant laws and regulations and industry standards, including the Labour Law of the People's Republic of China and the Fire Protection
Law of the People's Republic of China. We have established a comprehensive occupational safety responsibility system and internal management system,
and formulated and implemented a series of rules and regulations, including the Safety Production Responsibility System, Regulations on Safety and Civilized
Production, ESD Protection Regulations, Fire Safety Management Regulations, Operating Standards for Hazardous Substance Testing Equipment, and Emergency
Preparedness and Response Procedures, to ensure that the entire process of the Company's production and operations and business management complies with
compliance requirements.
The Company has established and improved the responsibility system for safe and civilised production, and continuously optimised employees' workplace
and operating conditions. Through measures such as regularly organising internal and external audits, carrying out safety risk assessments, and implementing
performance appraisals, we systematically identify and evaluate potential safety risks in production processes, thereby guiding the iterative improvement of risk
prevention and control mechanisms and reinforcing the safety production management defence line.
Identification of Hazardous Factors
The Company actively advances the establishment of an occupational health and safety management system by systematically identifying and assessing
hazardous factors in the production process, improving safety risk identification and control mechanisms, and implementing preventive measures and
continuous improvements. The Company will conduct regular internal and external audits, risk assessments, and performance evaluations to gradually achieve
the standardisation, scientific approach, and internationalisation of occupational health and safety management.
The Company is equipped with professional testing equipment, such as XRF spectrometers, to strictly test environmentally controlled substances in raw
materials, semi-finished products, and finished products, preventing materials containing prohibited or restricted chemicals from entering the production
process, and protecting employees' health and environmental safety. The Company regularly monitors occupational hazards such as noise and dust
concentration. Based on the testing reports, the Company conducts risk assessments and implements corresponding protective and corrective measures. Anti-
static zones are established in the production workshops, with temperature and humidity controlled within reasonable ranges. Employees are required to wear
anti-static wristbands, gloves, shoes, and clothing to ensure the safety of production operations and product quality.
Occupational Health Protection
The Company provides employees in each position with labour protective equipment compliant with national and industry standards, and regularly verifies
the effectiveness of the protective equipment and employees' compliance with standard wearing requirements. The Company has established an annual
occupational health examination mechanism and, for high-risk operational positions involving high temperatures, dust, chemicals, and noise, additionally
implemented special medical examinations and routine health monitoring. In light of actual role-specific risks, we carry out special training on knowledge of
occupational disease prevention and control to ensure that employees fully understand the key risk points of their positions and the practical requirements for
protective measures.
Safety Emergency Response Plan
We have developed emergency response plans covering scenarios such as fires,
power outages, natural disasters, chemical spills, and workplace injuries based on
the Emergency Preparedness and Response Procedures, and have established an
emergency command organisational structure. The General Manager leads the safety
production leadership team, and department heads take direct responsibility for safety
management, ensuring the principles of "whoever is in charge should be responsible;
whoever executes should follow up."
The Company regularly organises training on operating procedures for hazardous
substances, training on the safe operation of equipment, etc. Each department
collaborates with the Comprehensive Department to conduct at least one fire drill
and other emergency exercises each year, ensuring a rapid and efficient response to Fire Emergency Drill
emergency situations, including rescue, personnel evacuation, and accident control.
Metric Unit 2025
Total expenses on safety RMB'0,000 16.36
Major casualty rate % 0
Safety training coverage rate % 100
Participants in safety training / 375
Total safety training duration Hour 4500
Work injury rate % 0
Employee health examination coverage rate % 100
Safety incidents / 0
Contributions to the Society
ETEK understands that education is the foundation for stimulating innovation and achieving sustainable development. We firmly believe that the Company's
long-term growth resonates in step with society's prosperity and progress. Based on the responsibility philosophy of "Originating from Society, Giving Back to
Society", the Company engages in multifaceted and diversified public welfare initiatives, such as empowering rural education resources, university–enterprise
collaboration, and industry technical exchanges, with the aim of creating sustained and far-reaching positive value for society. These actions vividly demonstrate
how we have built solid trust with our operating locations and broader society, achieving symbiotic and win-win development.
In-depth University–Enterprise Collaboration
ETEK firmly believes that education is the core engine for activating innovation momentum and solidifying the foundation of sustainable development. The
Company deeply engages in building a collaborative education ecosystem between enterprises and universities. Through diversified initiatives such as providing
financial assistance, establishing dedicated scholarship and award funds, and creating academic exchange platforms, we comprehensively empower the
enhancement of university teaching and research, as well as the cultivation of high-level talent, thereby actively fulfilling our responsibility and commitment to
education for the public good.
Under the in-depth "School–Enterprise Zero-Distance" cooperation model, in 2025, the Company carried out strategic collaboration with top universities such
as Southeast University and Beijing University of Posts and Telecommunications. On the one hand, we opened up our corporate R&D scenarios and workplace
practice platform, inviting students to experience our corporate culture and technology R&D processes in an immersive manner, and building in advance a
seamless bridge from campus to the workplace. On the other hand, we actively leveraged the cutting-edge academic insights of university professors and experts,
promoting resonance between our technological practices and universities' academic research, continuously injecting high-quality external intellectual resources
into our employees' holistic development system, and achieving complementary strengths and co-creation of value between schools and enterprises.
A Visit by Southeast University Exchange with the School of Integrated Circuits, Beijing
University of Posts and Telecommunications
Rural Revitalisation
In 2025, ETEK remained committed to the responsibility philosophy of "Originating from Society, Giving Back to Society", and thoroughly implemented Opinions
on Achieving Effective Linkage between Consolidating and Expanding the Achievements of Poverty Alleviation and Rural Revitalisation and related work
arrangements. We actively fulfilled our corporate social responsibility and participated deeply in public welfare initiatives in the field of rural revitalisation.
Building on our own development strengths, we made targeted efforts in core areas such as improving rural livelihoods and empowering education. Through
diversified and pragmatic measures, we continued to support development and capacity building in grassroots rural areas, effectively demonstrating the social
responsibility of a semiconductor enterprise.
case Cultural resources empower rural areas
In April 2025, the Company worked in collaboration with the Wuxi High-tech
Industry Association and other partner enterprises to donate 350 books to
Zhongnan Village, Sidui Town, Guanyun County, supplementing the supply
of resources for rural cultural development, and received sincere thanks
from the Villagers' Committee of Zhongnan Village.
Letter of Appreciation
case Cultural resources empower rural areas
In October 2025, the Company donated RMB20,000 for maker classroom
equipment to the Third Primary School of Yichuan County, providing
targeted support for upgrading rural education hardware facilities. This
charitable act received a Certificate of Appreciation awarded by the
People's Government of Yichuan County.
Certificate of Appreciation
Appendices
Appendix 1: Table of Key Performance in 2025
Economic Performance
Indicator Unit 2025 Performance
Operating revenue RMB'0,000 76,847.49
Net profit RMB'0,000 3,708.19
Economic Performance
Basic earnings per share RMB 0.28
Total assets RMB'0,000 146,679.38
Environmental Performance
Indicator Unit 2025 Performance
Environmental
Total environmental expenses RMB'0,000 0.50
expenses
Scope 1 GHG emissions tCO2e 90.62
Scope 2 GHG emissions tCO2e 1,061.29
Climate change tackling
Total GHG Emissions tCO2e 1,151.91
GHG emission intensity tCO2e/RMB million revenue 1.50
Volume of non-hazardous waste generated Tonne 0.01
Volume of hazardous waste generated Tonne 6.80
Waste management Total waste discharged Tonne 6.81
Total waste discharged per RMB million of revenue Tonne/RMB million revenue 0.01
Volume of hazardous waste recycled Tonne 2.00
Total water consumption Tonne 4,480.50
Water resource usage
Total water consumption intensity Tonne/RMB million revenue 5.83
Total electricity consumption 10,000 kWh 182.13
Natural gas consumption 10,000 m? 0
Gasoline Tonne 28.99
Energy usage
Purchased electricity kWh 182.13
Total energy consumption tce 266.77
Total energy consumption per RMB million of revenue tce/RMB million revenue 0.3471
Social Performance
Indicator Unit 2025 Performance
Total R&D expenses RMB'0,000 19,432.26
Total R&D expenses as a percentage of operating revenue % 25.29
Number of R&D personnel / 331
Proportion of R&D personnel to total employees % 57.67
Number of newly filed intellectual property applications / 41
Number of newly granted intellectual property rights / 23
Innovation-driven
Total number of valid intellectual property rights / 196
Intellectual property per RMB million of revenue Patent/RMB million revenue 0.26
Total number of valid patents / 131
Number of valid patents per RMB million of revenue Patent/RMB million revenue 0.17
Number of software copyrights / 9
Number of software copyrights per RMB million of revenue Patent/RMB million revenue 0.01
Doctor's degree / 4
R&D personnel by Master's degree / 104
education Bachelor's degree / 205
Below bachelor's degree / 18
Aged under 30 (exclusive) / 214
R&D personnel by
Aged 30 (inclusive)–50 (exclusive) / 105
age
Number of product recalls / 4
Product recall ratio % 0.46
Product quality compliance rate % 98.5
Product safety
Number of customer complaints / 111
and service
Number of customer complaints per RMB million of revenue Complaint/RMB million revenue 0.14
quality
Customer complaint handling rate % 100
Customer complaint resolution rate % 100
Customer satisfaction % 93
Social Performance
Indicator Unit 2025 Performance
Information security training sessions conducted / 4
Total duration of information security training conducted Hour 4
Total number of participants in information security training / 40
Data security and
customer privacy Number of data security attack-and-defence drills conducted / 1
protection
Number of confirmed data breach incidents / 0
Number of confirmed customer privacy leak incidents / 0
Number of confirmed cybersecurity incidents / 0
Total number of suppliers / 120
Chinese mainland / 117
Suppliers by region Hong Kong, Macao, Taiwan, and overseas / 3
Supplier localisation rate % 97.5
Supply chain Supplier Integrity Total number of Supplier Integrity Commitment Letters signed / 32
security Commitment Letter Proportion of suppliers that have signed the Integrity Commitment Letter % 26.67
Number of suppliers that obtained the quality management systems certificate / 102
Proportion of suppliers that obtained the quality management systems certificate % 85
Number of suppliers that obtained the environmental management systems certificate / 75
Proportion of suppliers that obtained the environmental management systems certificate % 62.5
Child labour incidents Case 0
Signing rate of labour contracts % 100
Social insurance coverage rate % 100
Labour standards
Average annual leave days per person Day 6
Total number of employee discrimination incidents / 0
Return-to-work rate after parental leave % 100
Employee
Employee satisfaction rate % 93.26
satisfaction survey
Total number of employees / 574
Male / 378
Employment Number of employees
Female / 196
(by gender)
Proportion of female employees % 34.15
Social Performance
Indicator Unit 2025 Performance
Senior management / 14
Number of employees (by
Middle management / 59
level)
Grassroots employees / 501
Postgraduate and above / 120
Number of employees (by
Bachelor's degree / 327
educational background)
Below bachelor's degree / 127
Employment
Number of female employees in middle and senior management / 15
Percentage of female employees in middle management % 2.61
Number of employees Number of minority employees / 10
(diversity) Proportion of minority employees % 1.74
Number of employees with disabilities / 1
Percentage of employees with disabilities % 0.17
Total employee turnover / 37
Employee turnover
Turnover rate % 6.03
Total expenses on employee training RMB'0,000 24.87
Expenses on employee training per RMB 1 million of revenue RMB million revenue 0.032
Career development and
Number of training participants / 704
training
Total training hours Hour 8,500
Coverage of employee training % 57%
Total expenses on safety RMB'0,000 16.36
Participants in safety training / 375
Total safety training duration Hour 4,500
Average safety training duration per person Hour 12
Safety training coverage rate % 100
Occupational health and
safety Safety drills and emergency exercises / 1
Occupational disease incidence rate % 0
Number of deaths due to work-related causes / 0
Number of work-related deaths per RMB 100 million of revenue / 0
Number of work-related injuries / 0
Social Performance
Indicator Unit 2025 Performance
Work injury rate % 0
Occupational health and safety
Occupational health check-up coverage rate % 100
Contributions to the society Total expenses on public welfare and charity RMB'0,000 2.20
Governance Performance
Indicator Unit 2025 Performance
Shareholders' meetings / 2
Proposals reviewed in the year / 66
Number of members of the Board of Directors / 9
Independent directors / 3
Composition of directors by educational background Master's degree and above / 7
Male directors / 7
Composition of directors by gender
Female directors / 2
Aged 50 and above / 5
Composition of directors by age
Corporate governance Aged under 50 / 4
Board of Directors / 7
Attendance of members at the Board of Directors' meetings % 100
Proposals passed by the Shareholders' Meeting and the Board of Directors' meetings during the year / 47
Strategy and ESG Committee's meetings / 2
Audit Committee's meetings / 6
Nomination Committee's meetings / 1
Remuneration and Appraisal Committee's meetings / 1
Number of information disclosure violations / 0
Cash dividends distributed per share RMB 0.10
Interests of investors Number of disclosed report documents / 45
Number of investor engagement activities held / 3
Number of violations of social laws and regulations / 0
Compliance management Taxes paid RMB'0,000 1,014
Tax payment rating - A
Anti-unfair Competition Incidents of lawsuits or significant administrative penalties arising from unfair competition behaviour / 0
Anti-commercial bribery and
Number of corruption incidents / 0
anti-corruption
Appendix 2: Metric Index Table
Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—Sustainability Report (Trial) Index Table
Dimension No. Topic Corresponding Articles Corresponding chapters of the Report
Not applicable. The Company's location is not within a key protection
area, and its production and business activities do not have a
Environmental significant negative impact on ecosystems and biodiversity. As such,
this issue has not been included in ETEK's ESG topics.
Not applicable. The Company was not engaged in scientific research,
sensitive fields such as life sciences and artificial intelligence.
Not applicable. The applicable entities for this topic are enterprises
Social with accounts payable (including notes payable) balances exceeding
RMB30 billion or a proportion exceeding 50% of total assets at
Equal treatment to small and medium-sized the end of the reporting period, as well as enterprises that have
enterprises disclosed overdue payment information for SMEs through the
National Enterprise Credit Information Publicity System. This topic
is temporarily not applicable and has not been included by the
Company as an ESG topic.
Section 1 of Chapter IV Protection of Employee Rights and Interests
Section 3 of Chapter IV Occupational Health and Safety
Sustainability-
related 18 Due diligence Article 52 Due Diligence and Communications with Stakeholders
Governance
Feedback Form
Dear Reader,
Greetings! Thank you for taking the time out of your busy schedule to read the report.
To enhance the communication value of this Report and effectively advance our ESG management and practices, we sincerely invite you to complete this
feedback form. Your invaluable feedback will help us continuously improve.
Wuxi ETEK Microelectronics Co., Ltd.
Address: 8 Xinhui Ring Road, New District, Wuxi City, Jiangsu Province
Tel.：0510-85217779
Email：lxwzqb@etek.com.cn
Website：www.etek.com.cn
Your Information
Name： Post:
Profession： Email：
□ Excellent □ Good □ General □ Poor □ Very poor
□ Excellent □ Good □ General □ Poor □ Very poor
□ Excellent □ Good □ General □ Poor □ Very poor
□ Excellent □ Good □ General □ Poor □ Very poor
□ Excellent □ Good □ General □ Poor □ Very poor
Which section of this Report interests you the most?
Which ESG information in this Report is the most helpful to you?
Do you have any suggestions or feedback for ETEK's future ESG reports?
首页
微信公众号
证券之星APP
