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Environmental, Social and Governance
(ESG) Report
Empowering a Connected
World with Ambitions
Quectel Wireless Solutions Co., Ltd.
CONTENTS
About This Report Connected World with ESG Governance Environment Society Governance Benchmarking Index Table
(ESG) Report
Quectel: Empowering a
Connected World with
ESG Governance
Environment
Society
Governance
Ambitions 19 Climate Change Response
ance Framework 22 Environmental Compliance Man- 42 Driving R&D Innovation Governance
ronment 74 Social Contribution
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About This Report
This Report is the third Environmental, Social, and Governance (ESG) Report published by Quectel Wireless Solutions Co., Ltd. for its stakeholders. It provides a detailed disclosure of the Company’s prac-
tices and performance in areas such as economic, environmental, social, and corporate governance responsibilities during 2025. The Report aims to facilitate effective communication with stakehold-
ers and systematically respond to their expectations and requirements. The content of this Report shall be ultimately governed by its Chinese version.
Reporting Period Terminology and References
For ease of reading, the following abbreviations are used in this report:
The Report covers a period from January 1, 2025 to December 31, 2025. To en-
hance comparability and completeness, certain contents may extend beyond Abbreviation Full Name / Business Segment
this period.
Quectel Wireless Solutions, Quectel, the Company, We Quectel Wireless Solutions Co., Ltd.
Changzhou Quectel Quectel Telecom Technologies Changzhou Co., Ltd.
Hefei Yirui Anysmart Technologies Co.,Ltd.
Guangdong Quectel Quectel Telecom Technologies Guangdong Co., Ltd.
Reporting Scope Guilin Quectel Quectel Telecom Technologies Guilin Co., Ltd.
Linyi Quectel Quectel Telecom Technologies Linyi Co., Ltd.
The Report covers Quectel Wireless Solutions and its subsidiaries, and discloses Penang Quectel Quectel Wireless Solutions Penang Sdn. Bhd.
information on their economic, social, and environmental responsibilities, along
with exemplary cases.
Information Sources
The information disclosed in the Report is sourced from Quectel’s official internal documents,
statistical reports, and financial statements. The data presented is derived from Quectel’s actual
Reporting Standards operations, annual financial data, internal statistical reports, third-party surveys, and third-party
evaluations and interviews. The Company guarantees that the Report contains no false records or
misleading statements and is fully responsible for its authenticity, accuracy, and completeness. All
Global Reporting Initiative (GRI) Standards 2021 amounts involved in this report shall be uniformly settled in Renminbi (RMB).
United Nations Sustainable Development Goals (SDGs)
Rules Governing the Listing of Stocks on Shanghai Stock Exchange
Guidelines No. 1 of Shanghai Stock Exchange for Self-Regulation of Listed Compa-
nies—Standardized Operation Access to the Report
The Self-Regulatory Guidelines No. 14 for Listed Companies on the Shanghai Stock
Exchange – Sustainability Report (Trial) (hereinafter referred to as the “Guidelines”)
Guidelines No. 4 of Shanghai Stock Exchange for Self-regulation of Listed Compa- The Report is available in electronic format. You can access the Report on our official website (https://
nies—Sustainability Report Preparation www.quectel.com) or on the Shanghai Stock Exchange website (www.sse.com.cn). For any questions
Guidelines on Sustainability Reporting for Chinese Enterprises issued by the China or suggestions regarding the Report, please contact us via email at yiyuan@quectel.com or call +86
Academy of Social Sciences (CASS-ESG 6.0 General Framework) 21-51086236-6778.
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Message from Our Chairman
For fifteen years, Quectel Wireless Solutions has remained steadfast in our platforms to foster an inclusive and mutually beneficial workplace where
original aspiration, building benchmark capabilities that support our global employees and the Company grow together. In safeguarding customer
CHAIRMAN
footprint. From a single-module offering to breakthroughs across multiple rights and interests, we prioritized product safety, closely followed indus-
domains, every step forward has been driven by the dedication and unity of try trends, and advanced technological innovation. We built a diversified
our people. As we expanded our domestic and international operations, we and synergistic product architecture to deliver high-quality digital and
Penghe Qian
continued to increase investment in research and development (R&D) and intelligent solutions tailored to customer needs. We strengthened our
talent cultivation, achieving steady year-on-year growth and reinforcing the compliance mechanisms and implemented stringent quality control
foundation of our globalization strategy. As a leading global provider of IoT across the entire lifecycle. As a result, we earned multiple industry rec-
solutions, we have consistently embedded sustainability at the core of our ognitions in 2025, including “Global Quality Leadership Ecosystem Partner,”
corporate strategy. We recognize that ESG is not only an intrinsic requirement reflecting strong endorsement from both industry peers and customers.
for high-quality corporate development, but also a fundamental responsibil- In managing supply chain responsibilities, guided by a win-win philosophy,
ity for the communication module industry in enabling digital and intelligent we promoted green and compliant development across the supply chain
transformation and fulfilling broader social commitments. Over the past and encouraged our partners to implement ESG practices, thereby build-
year, we have remained true to our mission and acted with diligence, deeply ing a sustainable supply chain ecosystem. In the areas of public welfare
integrating environmental responsibility, social commitment, and corporate and rural revitalization, we remained committed to giving back to society.
governance into our governance and delivering tangible progress in our sus- Since 2020, we have carried out public welfare initiatives for five consec-
tainability journey. utive years. In 2025, our total charitable donations amounted to RMB 1.983
million, covering multiple regions, including Anhui and Guangxi, reaching
In advancing our environmental (E) responsibilities, we adopted a green and beneficiary institutions such as rural schools and nursing homes, thereby
low-carbon approach, proactively addressing climate change challenges and creating a traceable and assessable public welfare track record.
embedding environmental principles throughout our operations. In 2025, our
global headquarters was officially inaugurated. Designed from the outset with In terms of corporate governance (G), we continuously optimized our gov-
sustainability in mind, this intelligent complex incorporates energy-efficient ernance structure, strengthened our internal risk control mechanisms,
equipment and rooftop distributed photovoltaic (PV) systems, continuously and upheld the highest standards of business ethics and integrity. We
optimizing our energy mix. We also strengthened environmental awareness integrated compliance management into all aspects of our operations,
across our workforce and rigorously managed key indicators such as waste- improved decision-making mechanisms, and enhanced governance
water and exhaust gas. By developing digitalized and modernized production effectiveness, thereby building a solid foundation for advancing our ESG
facilities, we optimized resource allocation and enhanced automation, achiev- agenda. We consistently place investor interests at the forefront, ensuring
ing both reduced energy consumption and improved energy efficiency. These transparency and efficiency in information disclosure and standardized
efforts contributed meaningfully to China’s Dual Carbon goals. Notably, in its operations, thereby safeguarding investors’ rights to information and
first year of operation, the Changzhou production base’s PV system reduced participation. Meanwhile, through stable business performance and sus-
carbon emissions by 1,438.83 tons, effectively lowering fossil energy con- tainable value creation, we delivered long-term and reliable returns to our
sumption. investors.
In fulfilling our social (S) responsibilities, we upheld a people-oriented philos- Looking ahead, we will continue to embrace our mission of Building a
ophy and remained committed to giving back to society. For our employees, Smarter Earth. Through sustained technological innovation, superior prod-
we continued to enhance the Quectel Academy, refining talent development uct quality, and a globally integrated service network, we will accelerate
and incentive mechanisms. In 2025, total employee training hours exceeded the realization of a truly intelligent world. We stand ready to work hand in
ened the protection of employee rights and interests, enriched welfare together to seize new opportunities in the vast IoT landscape.
programs and engagement activities, and established open communication
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Quectel: Empowering a Connected About Us 04
World with Ambitions
Our Business 06
Our History 07
Honors in 2025 08
ESG Performance Highlights 08
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About Us Global Sales Center Sales Partners Employees Serving Global Customers
Company Profile
Quectel Wireless Solutions Co., Ltd.,
established in 2010 in Shanghai, is a Asia Pacific
leading global provider of comprehen-
sive IoT solutions. We offer a compre-
hensive portfolio of IoT products and Europe
services, including cellular modules
(5G/4G/3G/2G/LPWA), automotive mod-
ules, smart modules (5G/4G/edge com-
North America
puting), short-range communication China
modules (Wi-Fi & Bluetooth), GNSS posi-
tioning modules, satellite communica-
tion modules, and antennas. In addition,
we provide services and solutions,
such as software platform services,
certification and testing services, and Africa
solutions in industrial intelligence and
smart agriculture. With extensive indus- Latin America
try experience, our products are widely
applied in smart transportation, smart
energy, financial payment systems,
smart cities, wireless gateways, smart Oceania
agriculture and smart safety, smart in-
dustry, smart living and healthcare, and
intelligent security.
We have established eight R&D centers China Europe Africa Asia Pacific North America Latin Americ
located in Shanghai, Hefei, Foshan, Guilin,
Wuhan, Penang (Malaysia), Belgrade (Eu- Headquarter in Shanghai Czech Republic The Netherlands South Africa Australia Malaysia Canada Argentina
Denmark Turkey Egypt India Pakistan The U.S. Brazil
rope), and Vancouver (North America), Beijing Hangzhou Shenzhen France Germany Indonesia The Philippines Mexico
covering China, Europe, North America, Changsha Hefei Shenyang Ireland Italy Israel Singapore
and the Asia-Pacific region, providing Chengdu Huizhou Suzhou Serbia Poland Japan Thailand
strong support for our rapid global Chongqing Jinan Wuhan Slovenia U.K. South Korea Vietnam
Foshan Kunming Xi’an Spain Sweden
expansion. Additionally, we have built Fuzhou Nanjing Zhengzhou Switzerland
a global sales and technical service Guangzhou Ningbo Zhongshan
network to deliver efficient and pro- Guilin Qingdao
fessional localized services worldwide.
We operate more than 50 sales centers
and work with over 90 sales partners,
supported by 8,956 employees, serving
more than 7,000 customers globally. For reference only. Not an actual map.
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World-Leading R&D Capabilities Delivering Industry-Leading End-to-End IoT Solutions Our Culture
In-Vehicle AI Solu-
Solutions tions Wi-Fi&-
Blue-
tooth
Software
Platform
Services
Mission
Anten-
na
Edge
Smart
Building a Smarter Earth
Comput- Agricul-
ing ture
Satellite
Communi-
cation
Industrial
Intelli- Vision
gence
Making Outstanding Contributions to Global IoT
•Focusing on the module market segment, providing one-stop IoT solutions centered around modules
Development
•Leading innovations in products and technologiessuch as 5G-A, AI, Edge Computing, Smart cockpit, and satellite communication modules.
•Global R&D Network with Eight Centers (Shanghai, Hefei, Foshan, Guilin, Wuhan, Vancouver, Belgrade, and Penang)
Quectel’s Global Footprint
Core Values
Customer-Centric, People-Oriented, Innovation-Driven
Shanghai China Hefei China Foshan China Guilin China
Business
Philosophy
Driving Development as the Top Priority, Continuous-
ly Enhancing Competitiveness
Wuhan China Vancouver Canada Belgrade Serbia Penang Malaysia
Eight Major R&D Centers
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Our Business
Quectel specializes in the design, R&D, manufacturing, and sales of IoT wireless communication modules and IoT solutions, offering one-stop IoT solution encompassing wireless communication mod-
ules, antennas, and IoT software platform services. With a diverse product portfolio and comprehensive functionalities, we meet various needs of smart terminal markets. Our products can be widely
applied in smart transportation, smart energy, financial payment systems, smart cities, wireless gateways, smart agriculture, smart industry, smart living and healthcare, and intelligent security.
Quectel Products and Services Product Application Scenarios
Intelligent Transportation Smart Energy Payment
Cellular Automotive Smart Wi-Fi/Bluetooth
• IoV • Fleet management • Electricity • Smart grid • Wireless POS • Vending machines
• 5G • 5G/ 4G/Satellite • 5G • Wi-Fi • V2X • OBD meters • Wind generators • Cash registers • Automatic re-
• 4G • V2X • 4G • Bluetooth • Vehicle tracking • DVR • Gas meters • Solar power gener- • ATM charge machines
• LPWA • Smart Cockpit/Mul- • Edge computing • Zigbee/Thread • Asset tracking • UBI auto insurance • Water meters ation
• Satellite ti-domain Fusion • SBC LoRa/Wi-SUN/WM-Bus/ • Ship tracking • Thermal meters • Charging piles
• 3G/ 2G Control • AI Box other Sub-GHz
• GNSS • Wi-Fi HaLow
Smart Agriculture & Environment
Smart City Wireless Gateways
• Short Range(Wi-Fi/Blue- • Amazon Sidewalk Safety
tooth/UWB/mmWave • Matter
Radar) • UWB
• Automotive antenna • mmWave Radar
• Street lighting • Toll collection • DTUs • VOIP • Food traceability • Wildlife protection
• Traffic lights systems • Consumer routers • Servers • Farmland moni- • Meteorological
• Sharing economy • Digital indicator • Industrial routers • Wi-Fi hotspots toring stations
• Smart parking • Advertising boards • Farm irrigation • Environmental
• Parking meters • Smart bins • Farm manage- Safety
• LED landscape
GNSS Antenna Solutions Service ment
lighting control
Intelligent Industry Smart Living & Healthcare Smart Safety
• DR positioning • Embedded antenna • AI+Robot • IoT platform
• RTK positioning • External antenna • XR • ODM/JDM
• Fusion positioning • Cables & Antenna ac- • Industrial intelli- • EMS
• Timing cessories gence • Antenna (Consultation,
• Dual frequency • Automotive antenna • Smart agriculture design, evaluation and
positioning • mmWave antenna • Smart safety testing) • Industrial PDAs/ • Flowmeters • Personal trackers • Elderly care • Alarms • Gas detectors
• Single frequency • New dielectric antenna • Certification & Testing scanners • Industrial refriger- • Pet trackers • Patient care • Intrusion detec- • Motion sensors
positioning • Small cell antenna and • RTK Correction Solution • Industrial PCs ation • Wearables • Glucosemeters tors • Asset protection
• Integrated antenna Indoor distributed • Security service • Industrial com- • Indoor air detec- • Gaming consoles • Blood pressure • Smoke detectors
• IMU antenna • Patent service puters tion • Mobile PCs machine
• Phased array antenna • Pipeline monitor- • Water valves/pump • Home automa- • Remote medical
ing controls tion equipment
• Robotics
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Our History
? Officially inaugurated our global headquarters ? Launched Provecta AI, an industrial intelli- ? Started construction of new global HQ in ? Opened the R&D centers in Wuhan China
? Officially launched the automotive brand Evoride gence brand Shanghai and Penang Malaysia
? Launched the IoT intelligent brand Acceleronix ? Launched the “Yuanzheng FMA” series ? Changzhou smart factory started operation
? Introduced multiple AI companion solutions high-precision navigation and integrated ? Released RedCap/Satellite communication
? Released integrated hardware and software assisted driving system modules
solutions for robotics ? Released Wi-Fi 7 modules supporting AIPC
? Launched millimeter-wave radar solutions for ? Released AI large model solutions
AR-based kick detection and fall detection
Released cellular vehicle-to-everything ? Listed on the Shanghai Stock Exchange ? Set up the North American R&D Center in ? Opened R&D Center in Guilin ?
(C-V2X) modules, paving the way for (Stock Code: 603236) Vancouver Established own smart factory manufac- ?
integrated assisted driving, connected Launched the 5G module series ? Obtained ISO27001 certification ? turing center in Changzhou
roads, and autonomous vehicles Opened the R&D Center in Belgrade ? Opened the R&D Center in Foshan, China ? Gained ASPICE CL2 approval ?
? Released multi-mode LPWA ? Released NB-IoT modules compliant with 3GPP R13 ? Completed development of the ? Set up Technical Sales & Service Centers in North
modules, LTE-A modules, and standards first smart module within a month America, Brazil, and Denmark
automotive-grade LTE modules, ? Joined GSMA ? Set up Technical Sales & Service ? Obtained ISO 16949 certification, meeting the
laying the foundation for mass ? Set up Service Centers in the U.K., Germany, Hungary, Centers in South Korea, Turkey, automotive industry quality standards
IoT adoption and the U.S. and Israel ? Launched multiple series of modules including
Founded in Shanghai ? Set up the first overseas Technical Sales ? Recognized as a “High-Tech Enterprise” ? Expanded the Hefei lab and R&D ?
Mass-produced our first GSM/GPRS module (M10) ? & Service Centers in India, Singapore, and Set up Service Centers in Australia ? center
Set up Technical Sales & Service Centers in Shenzhen ? Latin America Set up a cooperative factory in Brazil ? Set up Service Centers in France ?
Established the R&D Center in Hefei ? and Poland
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Honors in 2025 ESG Performance Highlights
Economic Performance
“Global Ecosystem Partner Award – Quality
Leadership Partner” in the 2025 Automotive
Supply Chain Awards
Operating Revenue Net Profit Attributable to
Shareholders
RMB 24,326 million RMB 837 million
secutively won “China’s Top 100 New Automo- Total Assets
tive Supply Chain Companies”
RMB million
“Market Leadership Award” and “Technology
Innovation Award” Governance Performance
Sessions of Investors Re- Female Representation on
ception the Board
Provecta AI was recognized as a “New Quality
Productivity Award – Pioneer Enterprise in
Going Global” at the 23rd China Automation +
Digitalization Awards
Proportion of Female Man- Major Information Disclo-
agers sure Violations
Greater Bay Area AI Toy Industry Innovation
Conference 2025 – “AI Toy Innovation Award” 23% 0
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Social Performance
Total Investment in Employ- Average Training Hours per Labor Contract Signing Social Insurance Coverage Employees Receiving Our
ee Training Employee Rate Assistance
RMB 4.05 million 38.39 100% 100% 101
Total Participants in Safety Major Safety Incidents R&D Investment Proportion of R&D Expendi- Proportion of R&D Personnel
Training ture in Operating Revenue
RMB million 8.02% 68.13%
Valid Patents During the Supplier CSR Agreement Total Charitable Donations Beneficiaries of Our Chari-
Reporting Period Signing Rate table Contributions
RMB million
Environmental Performance
Total Environmental Protec- Environmental Manage- Power Generation from Greenhouse Gas Emission Intensity
tion Investment ment System Certification Renewable Energy
ISO 14001
RMB 1.6103 million
certified 2.717 million kWh 0.016 tCO2e per RMB 10,000 of revenue
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ESG Governance
Sustainability Governance Framework 11
Sustainability Management Mechanism 11
Materiality Assessment 13
Sustainability Risk Management 15
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Sustainability Governance Sustainability Management
Framework Mechanism
At Quectel, we have established a preliminary top-down three-tier ESG governance framework to ensure
ESG Management Mechanism
efficient and orderly ESG management. The Strategy Committee assumes the ultimate responsibility for the
oversight and decision-making on ESG-related matters.
ESG Governance Framework To advance ESG management effectively, the Company has established a structured framework to periodi-
cally identify and analyze environmental, social, and governance (ESG) risks and opportunities across oper-
ations. Cross-functional review sessions are convened with all departments and business units to assess
The Board of Directors' Strategy Committee serves as the highest decision-making material issues, followed by formal reporting to executive management. This enables agile optimization of
Deci- sustainability-aligned management strategies, ensuring enterprise-wide integration of ESG practices into
body for ESG governance. It continuously promotes the integration of ESG factors
sion-Mak-
into daily operations, reviews and oversees ESG-related matters, and drives the im- daily workflows and long-term decision-making.
ing Body
plementation and execution of ESG management strategies.
ESG Oversight Mechanism
Responsible for the overall coordination of ESG management and the review of ESG
The Company has progressively established a structured governance framework to oversee the
reporting, providing professional advice on the formulation and implementation of
Manage- implementation of sustainability-related initiatives, focusing on role clarification and systematic daily
ment sustainable development strategies and ESG work plans, while ensuring close com-
oversight mechanisms. ESG-related performance metrics, such as environmental governance, pollut-
munication and collaboration with stakeholders on ESG-related issues.
ant emission control, occupational health and safety, product quality assurance, supplier manage-
ment, and customer satisfaction, are linked to the performance evaluations of relevant management
personnel and teams across business units. We enforce a performance-based incentive and penalty
system to recognize outstanding projects and individuals.
The ESG Task Force, with heads of functional departments and subsidiaries as the
ESG Task execution team, assists the management in effectively implementing and advanc-
Force ing various ESG initiatives in daily operations.
ESG Information Reporting Mechanism
In 2025, driven by our strong commitment to ESG governance, high-quality information disclosure, effective
We continue to enhance our sustainability-related information governance framework, having es-
ESG practices, and steadily improving business performance, our ESG ratings and rankings, including those
tablished a preliminary structure where an ESG Task Force oversees daily data collection, analysis,
by EcoVadis, continued to rise. These achievements have been widely recognized by capital markets and rat-
and reporting. Meanwhile, leveraging a dedicated ESG data aggregation platform, the Company is
ing agencies.
implementing rigorous validation protocols to ensure transparency, accuracy, and completeness of
ESG Governance Performance in 2025 disclosed information. This structured approach provides a solid foundation for advancing the or-
ganization's sustainability strategy while aligning with global ESG disclosure standards.
ESG Capability Enhancement
Quectel prioritizes ESG communication and professional skill development in sustainable development. In
November 2025, we commissioned an external professional organization to conduct internal ESG training,
attended by more than 60 employees. During the session, participants engaged in in-depth exchanges,
gaining a comprehensive understanding of ESG priorities across functional departments and the latest
EcoVadis Corporate Social Wind ESG Rating Sino-Securities ESG Rating
regulatory requirements. In addition, members of our ESG Task Force participated in the “High-Quality Devel-
Responsibility Rating
opment Training Program for Listed Companies: Sustainability Report (ESG)” (Phase II, 2025) organized by the
EcoVadis Committed AA A
Shanghai Stock Exchange.
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Respond to the UN SDGs
We support the United Nations 2030 Agenda for Sustainable Development and integrate social responsibility comprehensively into our corporate development. We actively align with the United Nations
Sustainable Development Goals (SDGs), advancing sustainable practices across areas including corporate governance, product quality, innovation-driven growth, low-carbon operations, environmen-
tal protection, employee development, digital and intelligent development, and social contribution.
SDG17: Partner- We have achieved a 100% signing rate for the Supplier CSR Agreement and the Supplier Environmental Protection
ships for the Goals Agreement. Through participation in industry exchanges, international exhibitions, standard-setting initiatives, and
industry associations, we have actively promoted global innovation in communication technologies.
We actively engage in public welfare and rural revitalization initiatives to SDG 1: No SDG16: Peace, Justice, and We continuously improve our internal risk control mechanisms,
improve education, culture, living, and other conditions in underdeveloped Poverty Strong Institutions uphold business ethics, and operate with integrity to ensure sus-
areas. We have carried out charitable activities for five consecutive years, tainable development.
with total donations reaching RMB 1.983 million in 2025.
We focus on enhancing employees' awareness of occu- SDG 3: Good Health SDG 15: Life The environmental assessments for new projects, such as
pational health and safety, creating a safe and healthy and Well-being on Land the global headquarters of Quectel and Linyi Quectel, show
working environment. We achieved zero work-related no involvement of key marine ecological function areas,
fatalities in 2025. ecological protection red lines, nature reserves, or other
ecologically sensitive and fragile areas.
We advocate for the concept of lifelong learning. SDG 4: Quality SDG 13: Cli- We support global climate action by optimizing en-
The Quectel Academy continuously offers diverse Education mate Action ergy structures, implementing regular energy-sav-
training courses, encourages employees to ing upgrades, and promoting cleaner production
engage in self-training, and provides abundant processes to enhance product energy efficiency.
learning resources and support.
We safeguard the rights and interests of female SDG 5: Gender SDG 12: Responsible Con- We urge all bases to set resource-saving
employees by offering dedicated benefits, Equality sumption and Production targets aligned with their operational
including maternity and nursing leave, nursing realities to improve operational effi-
rooms, and regular health seminars. These meas- ciency, and strictly control hazardous
ures have fostered an equal, inclusive and wom- substances. We focus on environmental
en-friendly workplace. protection throughout the product life-
cycle to minimize environmental impact.
SDG 10: Reduced We uphold diversity, equity, and inclusion (DEI) principles, strictly pro-
We optimize the energy mix by installing rooftop distrib- SDG7: Affordable and
Inequalities hibiting workplace bullying and any form of discrimination. We forbid
uted PV systems at Quectel global headquarters and Clean Energy any verbal, physical, or visual abuse, harassment, or offensive behav-
Changzhou factory, thus reducing indirect greenhouse
ior, and eliminate discrimination based on race, color, age, gender, or
gas (GHG) emissions.
other factors.These measures have fostered an inclusive working
environment.
SDG 8: Decent Work SDG 9: Industry, Innova- We have launched integrated AI large model solutions combining modules, large
We have established a fair and competitive compensation system comprising base
and Economic Growth tion, and Infrastructure models, AI algorithms, and platforms. These solutions have enhanced perception,
salary, benefits, and annual bonuses, thus creating a compensation framework that
decision-making, and interaction capabilities across terminal applications, and con-
balances fairness and competitiveness.
tributed to the development of new quality productive forces.
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Materiality Assessment Stakeholder Communication
Quectel maintains close, ongoing communication with stakeholders by establishing effective engage-
ment mechanisms and diverse communication channels. The Company actively collects stakeholders’
Double Materiality Assessment opinions and suggestions, and ensures their right to participation and information access, enhancing
stakeholders’ understanding and recognition of the Company.
In accordance with the double materiality principle, we adopted a four-step assessment process and engaged Stakeholders Key Concerns Communication Channels
experts and stakeholders to identify, screen, and analyze material topics from both impact and financial materiality
Investment Returns
perspective, following the procedure outlined below. In 2025, we conducted online surveys targeting both internal General Meetings
Protection of Shareholder Rights and
Investor reception and communication
and external stakeholders and received 159 valid responses. Interests
Official website and announcements
Corporate Governance
SSE E-interactive platform
R&D Innovation
Double Materiality Assessment Process Shareholders and Investors Product and Service Security and Quality
Investor hotline and email
Corporate Governance Periodic reports
Business Ethics Daily communication
• We conducted research on our internal and external environment as well as sustainability trends, Contributing to Local Economic Growth Integrity
Regulators
capturing the core concerns and expectations of key stakeholders.
• Internally, we thoroughly examined our organizational structure, business processes, and techno- R&D Innovation
logical capabilities. Customer meetings
Digital and Intelligent Development
• Externally, we closely monitored macroeconomic trends, regulatory changes, and market dynamics. After-sales service
Smart Product Design
On-site communication
Product Security and Quality
Customer satisfaction survey
Customer Rights & Interests and Informa-
Official website and media interactions
Customers tion Security
• Based on the Shanghai Stock Exchange’s Guidelines, and in alignment with leading international sus- Supplier Management On-site visits
Industry Development Responsible procurement and marketing
tainability standards, regulatory requirements, industry norms, market trends, and peer benchmark-
Fair Competition Supplier certification
ing practices, we established a tailored list of sustainability topics. Business Ethics Cooperation agreements
• Through interviews, questionnaires, and data collection, we conducted due diligence to identify the Suppliers and Partners
impacts of each topic on external stakeholders, and the financial risks and opportunities for our op-
erations. Compensation
Training and Career Development Mecha- Employee engagement activities
nism Feedback
Employee Care Training programs
Democratic Management Employee satisfaction surveys
• We organized internal experts and external sustainability specialists to conduct quantitative Public Welfare Official website
assessments of both impact materiality and financial materiality, completing the overall double Employment Promotion Assistance to disadvantaged groups
materiality assessment. Rural Revitalization Volunteer activities
Promoting community development WeChat official account
Community
Product Security and Quality Disclosures
• We consolidated the assessment results of impact materiality and financial materiality, and estab- Collaborative Industry Development Press Releases
Win-Win Cooperation Project cooperation
lished a double materiality matrix based on our operational management capabilities. Media and the Public
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Materiality Assessment Results
In 2025, based on policy benchmarking and industry analysis, we identified a total of 27 topics, including 9 environmental topics, 13 social topics, and 5 governance topics. In accordance with the
definitions set out in the Guidelines, “Customer Service” has been incorporated as a material topic and is presented under the broader framework of “Product Safety and Quality.”
Environmental Issues
High
Importance to economic, social and environmental impacts
Social Issues
ment try Development
Governance Issues
Low Importance to the Company's finance High 23 Corporate Govern- 26 Compliant Operations
ance 27 Protection of Investor
Anti-Corruption
With importance, but With both financial and With neither financial With financial importance, 25 Anti-Unfair Competi-
no financial importance impact importance nor impact importance but no impact importance tion
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Sustainability Risk Management Risk Management Structure
Risk Management System
At Quectel, we have established and continuously improved a comprehensive risk management system. We Board of Directors
regularly update internal policies, including the Comprehensive Risk Management Measures and the Control
Procedures for Addressing Risks and Opportunities, incorporating sustainability-related risks and opportuni- Provide overall oversight of risk prevention and control systems, including imple-
ties into daily management processes to enhance our ability to mitigate risks and capture opportunities. mentation progress and effectiveness.
We implement a closed-loop risk management process covering identification, assessment, response, imple-
mentation, and evaluation of major risks or corporate crises. For newly identified significant risks lacking con-
tingency plans, management coordinates relevant departments to promptly analyze, develop, and implement
response measures, with the Internal Audit Department responsible for overseeing execution.
Audit Committee
Risk Management Principles Guide risk mitigation efforts, approve risk control policies, and evaluate the Compa-
ny’s risk status and management capabilities.
Comprehensiveness, Effectiveness, Prevention and Control, Independence, and Cost-effectiveness
Risk Management Objectives Management
To avoid and mitigate potential losses arising from risks, thereby ensuring the Company's sustained Lead the daily operations of risk management and internal control, and establish
healthy development. and maintain a risk prevention and internal monitoring system for business and
management processes.
Risk Control Workflow
Internal Audit Department
Establish the Context
Monitor and manage key departmental risk areas on a daily basis, and conduct
audits and inspections of the operational processes and results across depart-
Communication and Consultation
Risk Assessment
ments.
Monitoring and Review
Risk Identification
Risk Analysis
Departments of Each Corporate Entity
Risk Evaluation
Responsible for the daily maintenance and management of business and oper-
ational processes within their departments, identifying key risk areas, perform-
ing self-inspections, and executing key control procedures.
Risk Treatment
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ESG Risk Response
The Company identifies ESG-related risks across environmental, social, and governance dimensions, considering both internal and external factors, and defines corre-
sponding risk tolerance levels. Each year, we update the list of risk events and revise the Risk Control Matrix accordingly.
Environmental:
Internal and external risks related to energy consumption, pollution control, environmental compliance, and supply chain disruptions caused by extreme weather.
Social:
Intensifying competition for technical talent may weaken our innovation capacity if talent development and incentive mechanisms are insufficient; overseas operations
may face disruptions due to regional resource allocation issues; and suppliers may pose risks related to non-compliance with environmental or labor standards, poten-
tially impacting our reputation.
Governance:
Inadequate ESG governance or insufficient data management and disclosure capabilities may affect investor decision-making. Global operations increase the complexi-
Risk Identification ty of compliance due to data privacy challenges and regulatory differences, potentially leading to legal risks.
Risk Assessment:
We compile a list of major risk events, conduct comprehensive analysis, determine risk levels (significant, major, or general), and update risk classifications accordingly.
Supplier Assessment:
Our procurement and quality departments evaluate suppliers’ ESG performance and raw material quality through pre-qualification questionnaires, on-site audits, and
scoring systems to ensure supply chain stability.
Market Demand Survey:
Risk Assessment
We analyze market dynamics and product technological attributes to identify potential high-risk areas.
Each functional department continuously monitors significant and related risks, focuses on changes in risk indicators, analyzes and evaluates monitoring results, and
sets early warning thresholds. Risk-related internal control information is communicated across organizational levels and with external stakeholders, ensuring timely re-
Risk Early Warning porting and resolution of identified issues.
and Monitoring
To mitigate ESG-related risks, we implement a range of measures, including digital system monitoring, supplier oversight and audits, structured employee training pro-
grams, and cleaner production practices to reduce environmental impact. These efforts strengthen our ESG risk management capabilities and contribute to building
differentiated competitive advantages, supporting long-term value creation.
Risk Control and
Response
For topics with high financial materiality, we actively conduct in-depth research, respond to the expectations of various stakeholders, and identify the potential impacts, risks, and opportunities asso-
ciated with these topics. Based on their distinct attributes and characteristics, we carry out a consolidated analysis.
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Impact
Impact
Material Issues Risk/Opportunity Impact Description Response Measures Magni-
Timeframe
tude
•Integrate data across procurement, R&D, production, sales, and finance to strengthen full lifecycle quality
control; enhance control over every stage of IoT and communication product manufacturing, to ensure
•Insufficient quality control of communication and IoT products (e.g., wireless
downstream order fulfillment capability; and provide reliable IoT terminals and supporting communication Short-,
Product Security and modules, antennas) may lead to unstable communication and terminal failures,
products to global customers. High medium-, and
Quality damaging our reputation and affecting global customer relationships and order
•Build specialized marketing and technical support teams, enhance localization services both domestically long-term
fulfillment.
and internationally, deepen collaboration with global operators and chip suppliers, and accelerate expan-
sion into niche IoT communication markets.
•Focus on customer needs by developing low-power communication modules, energy-efficient IoT termi-
nals, and other products that meet the requirements of various application scenarios.
•Establish a rapid response mechanism for customer needs, strengthen full-process services including Short-,
•Failure to align with growing demand for green, low-carbon, and energy-efficient Medi-
Customer Services pre-sales solution customization, in-sales technical guidance, and after-sales FAE operation and mainte- medium-, and
products may result in loss of customers and reduced long-term competitiveness um-high
nance support, so as to enhance customer loyalty and mitigate the risk of customer churn. long-term
•Continuously increase R&D investment, strengthen talent development in communication and IoT sectors,
and enhance core technology innovation capabilities.
•Long R&D cycles, high investment, and complex testing processes in domestic •Optimize product portfolio in close alignment with market demand, improve the management system Short-,
Innovation-Driven Devel-
and overseas markets may result in escalating R&D costs; and rapid technological through rational division of labor, and strengthen brand value and market competitiveness. High medium-, and
opment iteration may lead to missed market opportunities if innovation lags •Consolidate the core business advantage in wireless communication modules, and accelerate the expan- long-term
sion of related businesses such as antennas, software platform services, ODM, and industrial intelligence,
thus broadening profit streams.
•Continuously monitor raw material market dynamics, optimize the supply chain management system,
Supply Chain Manage- •If upstream raw materials and components in the IoT communication industry deepen cooperation with core suppliers, and establish diversified procurement channels, thus enhancing
Short-,
are significantly affected by market fluctuations or industry cycles, shortages or supply chain resilience. Medi-
ment and Green Procure- medium-, and
sharp price increases may occur. If the cost increase cannot be passed down- •Promote green procurement by giving priority to low-carbon, environmentally friendly raw materials; and um-high
ment stream, it will directly impact the Company's revenue and profit levels. mitigate raw material price volatility through measures such as large-scale procurement and long-term
long-term
agreements.
•Conduct regular information security audits and employee security training to enhance data security
•The IoT and communication industry involves a large amount of terminal data,
awareness across the organization.
user privacy, and transmitted data. Inadequate cyber security management or Short-,
Data Security and Privacy •Upgrade the information management platform, strengthen security access controls, deploy protective Medi-
weak employee security awareness may lead to risks such as data leakage and medium-, and
Protection unauthorized access, resulting in non-compliance and damage to corporate rep-
technologies against external illegal attacks, ensure end-to-end security of data transmission, storage, um-high
long-term
and usage, comply with industry regulatory requirements, and maintain internationally recognized certifi-
utation.
cations for information security management such as ISO 27701 and ISO 27001.
•Technologies such as AI large models drive innovation and expansion of scenarios •Focus on the integration of AI, 5G, and IoT applications, establish dedicated R&D teams, and explore innova-
Contributing to the in the communication and IoT industry, bringing opportunities for the Company's tive applications of advanced digital and intelligent technologies in product design and real-world scenar-
Medi- Medium-, and
Development of Digital industrial upgrades, product iterations, and 6G development. However, failure to ios to enhance smart product functionalities.
um-high long-term
Intelligence invest timely in technological upgrades and talent development may result in •Attract high-end talent in digital and intelligent fields to support technological upgrading and industrial
technological lag and loss of market competitiveness transformation.
•Establish and continuously improve occupational health and work safety management systems (with
responsible personnel signing accountability commitments); standardize operational procedures across
•Safety risks exist in manufacturing and operational processes, including equip- production and maintenance processes; conduct regular hazard identification and remediation; imple-
Short-,
Occupational Health and ment handling and precision operations. Inadequate work safety management ment emergency response plans and drills; and ensure the availability of adequate safety protection facil- Medi-
medium-, and
Work Safety may lead to workplace accidents, adversely affecting employee health and in- ities. um-high
long-term
creasing operational risks. •Strengthen occupational health management by organizing regular health check-ups, providing relevant
training, improving working conditions, and mitigating occupational health risks to safeguard employees’
physical and mental well-being.
Note: Short-term: within 1 year; Medium-term: 1–5 years; Long-term: over 5 years.
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Climate Change Response 19
Environmental Compliance Management 22
Pollutant and Waste Management 25
Optimizing Energy Consumption 28
Water Resource Utilization 31
Environment
Circular Economy 31
Green and Low-Carbon Operations 32
Safeguarding the Ecological Environment 34
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Climate Change Response
As a key participant in the communications and IoT industry, Quectel is fully aware of the systemic challenges and strategic opportunities brought by climate change. We have embedded climate ac-
tions into our corporate governance and long-term development strategy, contributing intelligent and efficient solutions to support the global energy transition.
Governance
We operate multiple R&D centers and manufacturing facilities Scenario Assumption Scenario Description
across China and beyond. Our Environmental, Health and Safety
(EHS) departments at both the Company and its subsidiaries take In the absence of climate policy intervention, global GHG emissions and energy consumption
the lead in coordinating climate-related management. Guided by High-carbon emissions scenario remain high. By 2100, atmospheric CO₂ concentrations could reach 3–4 times pre-industrial
internal policies such as the Energy Consumption Management Pol- (>2°C warming, RCP8.5) levels. Energy demand for base stations and data centers increases significantly, and extreme
icy and the Environmental Inspection and Monitoring Management weather events intensify impacts on infrastructure.
Standards, we have developed energy management strategies
tailored to the communications industry. We systematically identify Strong global decarbonization policies are implemented, significantly reducing emissions
Low-carbon emissions scenario
existing and potential climate-related risks affecting base stations, within a decade. This accelerates the green transition across industries and creates opportu-
(≤2°C warming, RCP2.6)
data centers, IoT product manufacturing, and office operations. nities for low-carbon technologies and intelligent applications.
Each production site has established dedicated energy efficiency
task forces focusing on energy-saving technological upgrades for
communication equipment, integrated building energy manage-
ment, and renewable energy utilization. These initiatives support
Identification of Climate Risks and Opportunities
emissions reduction at the source, reduce GHG emissions, and
strengthen our foundation for climate governance. Physical Risks (High-Emissions Scenario)
Strategy Risk
Type
Risk Description Mitigation Measures
Impact
Magni-
Impact
Time-
tude frame
Climate Scenario Analysis
Develop emergency plans for typhoons, floods, and earth-
Extreme weather events (e.g., typhoons, heavy quakes.
In the context of increasing global extreme weather events, includ- Acute rainfall, earthquakes) may damage base stations, Employ the smart park's monitoring and early warning sys-
Moder- Short-
ing heatwaves, heavy rainfall, and flooding, our major operations Climate data centers, and production lines, disrupt logis- tem to capture meteorological information in real-time.
ate term
are located in regions such as the Yangtze River Economic Belt Risks tics and supply chains, and result in asset impair- Strengthen infrastructure protection and equipment in-
ment and operational losses spections.
and the Guangdong-Hong Kong-Macao Greater Bay Area, which are Enhance backup systems for materials and data assets.
more exposed to such risks. Critical infrastructure, including base
stations, data centers, and production facilities, may be affected.
During the reporting period, we conducted climate scenario analy- Rising sea levels threaten the safety of coastal
Enhance storage protection for goods and raw materials Medi-
sis in reference to the TCFD framework, focusing on two scenarios: base stations, data centers, and factories;
Chronic during rainy seasons. um-,
Global warming may increase equipment loads,
a low-emissions scenario (RCP 2.6) and a high-emissions scenario Climate
raising cooling energy consumption and electric-
Provide heat relief measures in high-temperature condi- Low and
(RCP 8.5). Based on industry characteristics, we refined our re- Risks tions. long-
ity costs for base stations and data centers, and
Optimize equipment operation cycles to extend service life. term
sponse strategies to enhance climate resilience. shortening equipment lifespan.
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Transition Risks and Opportunities (Low-Emissions Scenario)
Risk Impact
Risk Description Mitigation Measures Magnitude
Type Timeframe
Closely monitor domestic and international carbon policies, as well as the EU carbon tariff and green prod-
Tightening “dual carbon” policies increase energy transition costs, uct access detection and dynamics;
Policy intensifying the pressure for energy conservation and emission re- Optimize the energy usage mix by adding rooftop distributed PV systems at our global headquarters;
Risks duction; Implement energy-saving and consumption-reducing measures, and cleaner production; Changzhou Quec-
Medi-
and The EU Carbon Border Adjustment Mechanism (CBAM) covers commu- tel has reached Level II cleaner production standards in the electronic components industry (domestically Short-term
um-high
Oppor- nication and IoT products, imposing additional export requirements advanced level);
tunities for areas such as carbon footprint verification ESG compliance, while Impose ESG constraints on upstream suppliers to promote ESG compliance throughout the entire industry
driving green industry upgrades. chain;
Leverage policy dividends to seek funding support for the green transition.
Tech- Green product design (low-power modules, high-temperature re- Actively expand green and low-carbon products, new energy, and smart application scenarios across mul-
nology sistance, long standby time) involves significant R&D difficulties. High tiple fields. The Company has launched an integrated “module + large model + AI algorithm + platform” solu-
Risks investment risks in the integration of technologies such as AI may tion, combined with end-side and cloud-side AI large models. We continue to make efforts in areas such as Medi-
High
and lead to asset impairment; new energy vehicles, smart agriculture, smart home, etc., to enhance product competitiveness; um-term
Oppor- However, technological innovation can drive industry transformation Collaborate with upstream and downstream enterprises to build a green technology innovation alliance
tunities opportunities and create differentiated competitive advantages. and reduce R&D risks.
Market
Market demand is surging for low-power, high-performance (posi- Continuously enhance our R&D capabilities for new products and new technology scenarios, focusing on
Risks Medium-,
tioning, transmission, AI integration) IoT and communication products new application scenarios such as industrial intelligence, smart elderly care, smart energy, ecological moni-
and and long- High
and sustainable application solutions. Industry competition is inten- toring, and the sharing economy;
Oppor- term
sifying, and low-efficiency products may face the risk of elimination. Expand overseas green markets to mitigate the risk of low-efficiency product elimination.
tunities
Repu-
tational Regulatory agencies, investors, and the public are increasingly con- Gradually improve the ESG management system, regularly disclose ESG reports, and continuously enhance
Medium-,
Risks cerned about corporate ESG performance; insufficient green transi- the Company's mainstream ESG ratings;
and long- Low
and tion will affect brand reputation and investment opportunities, while Build a green brand image and strengthen communication and engagement with stakeholders through
term
Oppor- a strong performance can enhance our image as an industry leader. diverse channels such as live streaming, exhibitions, and product education.
tunities
Note: Short-term: within 1 year; Medium-term: 1–5 years; Long-term: over 5 years.
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Impact, Risk, and Opportunity Management
We strengthen our risk resilience through multidimensional measures, explore low-carbon development opportunities, ensure stable operations, and support the green transition of the industry.
Climate-related impacts, risks and opportunities management process
Operating Context ed Risks and Opportunities Strategies agement Information
Gain a comprehensive understanding Identify the potential impacts, risks, and op- Formulate and implement targeted strat- Regularly disclose information regard-
of the Company’s operations, business portunities under both high- and low-emission egies in response to the evaluated cli- ing the identification, and management
structure and relationships, external scenarios; and assess the impact severity and mate-related risks and opportunities of climate-related risks and opportuni-
environmental influences, and affect- duration of the identified climate-related risks ties
ed stakeholders
GHG Emissions Reduction Initiatives
Expansion of Renewable Energy Use Energy System Management
Our global headquarters has fully integrated rooftop distributed PV systems, We implement dynamic monitoring and optimization of key energy-consuming
with an installed area of approximately 3,000m2. The project is expected to systems, including air conditioning, air compressors, and nitrogen usage. Com-
generate annual economic benefits of approximately RMB 111,800 in its first bined with waste heat recovery technologies, these measures significantly
year. The rooftop PV system in Changzhou generated over 2.71 million kWh of improve energy efficiency and reduce energy consumption per unit of output.
electricity during the year, providing clean energy for operations.
Green Products and Cleaner Production Green and Low-Carbon Office Spaces
We continue to develop low-power, high-efficiency products, embedding Our global headquarters, officially put into operation, fully embodies green
eco-design principles throughout the product lifecycle. We comprehensively building principles. Through intelligent lighting systems, high-efficiency HVAC
promote cleaner production practices to reduce resource consumption and systems, and energy-saving equipment, we achieve low-carbon operations
pollutant emissions from the source, supporting high-quality green develop- throughout the building lifecycle.
ment. Smart energy management systems are deployed in office areas to create a
comfortable, energy-efficient, and sustainable working environment.
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Indicators and Goals Quectel’s Environmental Management Structure
We have established the Management Policy and Target Control Procedures to ensure the imple-
mentation of environmental objectives. Detailed Targets, Indicators, and Management Plans are Management Team
formulated and cascaded across departments. Progress is tracked based on corrective action
plans submitted by responsible departments to ensure effective implementation.
Heads of Branches and Subsidiaries
GHG Emissions Performance
Indicator Unit 2025
Plant Operations and EHS Department
Scope 1 GHG Emissions tCO2e 61.46
Scope 2 GHG Emissions tCO2e 38,331.42
Facilities Division Power Technology Division EHS
Total GHG Emissions tCO2e 38,392.88
GHG Emission Intensity tCO₂e per RMB 10,000 of revenue 0.016
Scope 2 GHG Emissions Offset by Renewable
tCO2e 1,438.83 During the reporting period,
Energy
Statistical Scope: Quectel global headquarters and global offices, Changzhou Quectel, Linyi Quectel, and Penang Quectel.
• we invested RMB 1.6103 million in environmental protection.
Note: Scope 1 GHG emissions refer to direct emissions from gasoline and liquefied petroleum gas consumption. Scope 2 emissions • our factories, and partner factories have obtained ISO 14001 Certification.
refer to indirect emissions from the consumption of purchased electricity and heat. The electricity emission factor for purchased • we had no significant environmental incidents or violations against environ-
electricity in GHG emissions calculation is derived from the Announcement on the 2023 Electricity Carbon Emission Factor, pub- mental laws and regulations.
lished by the Ministry of Ecology and Environment in December 2025.
Environmental Compliance Man-
Statistical Scope: Changzhou Quectel, Linyi Quectel, Penang Quectel, and Quectel Global Headquarters.
agement
Environmental Management Framework
Quectel strictly adheres to relevant environmental protection laws and regulations. We have devel-
oped internal policies such as the Environmental Inspection and Monitoring Management Stand-
ards and the Hazardous Chemicals Safety Management Protocols, and continuously improved our
environmental management system.
Our subsidiaries have established a three-tier environmental governance framework with clearly
defined responsibilities at each level. The management team is responsible for supervision, while
the heads of branches, subsidiaries, and operational entities coordinate. Reporting to them, the EHS
Department is tasked with executing environmental management across our factories. The tripar- Shanghai Quectel Quectel Changzhou
tite governance model ensures efficient environmental stewardship. Additionally, we have imple-
mented a system of environmental stewardship. Environmental performance is incorporated into ISO 14001 Certification
the annual performance appraisal of key management personnel, and a corresponding rewards
and penalties mechanism has been established.
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Environmental Risk Assessment and Response Process Definition
Environmental Emergency Response Management Identification:
Identify signs of emergencies (such as “excessive concentration of combustible gas”
or “abnormal noise and smoke from equipment”) through monitoring systems (such
To ensure rapid response, effective handling, and the minimization of losses in the event of envi-
as gas detectors and video surveillance) or employee reports.
ronmental emergencies, we have established a comprehensive emergency management system
Early Warning and Response:
centered on a sound organizational structure, standardized procedures, practical contingency
Issue early warnings via workshop broadcasts. The response is divided into three lev-
plans, and effective drills. Through a closed-loop management approach comprising organization-
els (major, significant, and minor) based on incident severity, with clearly defined ac-
al setup, process definition, contingency planning, practical drills, and continuous improvement,
tivation authority and key response actions. On-site response procedures are estab-
we continuously enhance our emergency preparedness and response capabilities.
lished (e.g. evacuation and perimeter control, hazard source containment, casualty
rescue, and environmental monitoring).
Post-Emergency Response:
Commander Assign follow-up responsibilities after the emergency has been resolved, and prepare
an emergency response assessment report.
Contingency Response Planning
Each department or area supervisor serves as the Commander. In the event of a chemical spill, the Based on operational characteristics and risk assessments, we have developed a
responsible person shall promptly establish a temporary emergency response team within their de-
systematic environmental emergency response framework covering multiple sce-
partment or the region to facilitate emergency response efforts. The responsible person also coop-
erates with the Company or external emergency response entities to implement emergency rescue. narios. These plans are regularly reviewed and updated to ensure relevance and op-
Furthermore, they are responsible for promptly reporting to their higher-level department the status erability.
of on-site response actions, any personnel injuries, and the operational condition of equipment and
facilities. Flood, Typhoon, and Earthquake Emer- Water Supply Interruption Emergency
gency Response Plan Response Plan
Fire Emergency Response Plan Power Outage Emergency Response Plan
On-Site Emergency Response On-Site Emergency Medical On-Site Emergency Communi- Hazardous Chemical Spill Emergency
Radiation Emergency Response Plan
Team Team cation Team Response Plan
……
This team is tasked with im- This team provides first aid This team is in charge of co-
plementing on-site emergen- to the injured at the scene, ordinating communication
cy response measures, such promptly notifies nearby across departments and
as blocking the source of a hospitals and reports injury management levels as in-
chemical spill. In case of an details to the Commander. structed by the Commander.
emergency, the team must It is responsible for commu- Practical Drills & Improvements
promptly shut off power sup- nicating instructions from
plies, gas lines, and chemical higher-level authorities to
leak sources at the scene to team members, gathering We conduct multi-level, scenario-based emergency drills (such as fire
minimize damage to equip- and reporting employees’
evacuation, electric shock rescue, and equipment failure response), to
ment and products, prevent needs to higher-level author-
injuries, and avoid escalation ities, and contacting other test the effectiveness of contingency response plans, strengthen team
of the incident. departments as required by coordination, and enhance employee awareness and response capabil-
the Commander. ities. Post-drill evaluations are carried out to continuously refine and im-
prove our emergency management processes.
Emergency Response Team for Environmental Emergencies
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Environmental Risk Management
We have established and implemented the Environmental Hazardous Factors Control Management Hazardous Chemicals Management
Policy, supported by documents, including the Hazard Identification, Evaluation and Control Regis-
ter, the Environmental Factors Identification and Evaluation Register, the List of Significant Environ-
mental Factors, and the List of Major Hazard Sources. We systematically conduct risk identification
and hazard investigation, implement control measures for identified risks, and track and rectify Recycling
hazards to achieve 100% closed-loop management. and Disposal
Transportation Storage Usage
Management
Environmental Risks Identification and Assessment Hazardous chem- Dedicated Employees han- The collection, dis-
icals are trans- storage areas dling hazardous charge, treatment,
ported strictly are established, chemicals must and disposal of
Establishment of Risk Assessment Teams: in accordance with chemicals strictly adhere hazardous chemi-
To support environmental risk identification and assessment, we have formed with designated classified and to regulations, cals are carried out
cross-functional risk assessment teams comprising experienced personnel from pro- routes and time stored according wearing personal in strict compliance
schedules. Trans- to their proper- protective equip- with regulatory
duction, process engineering, equipment, logistics, and safety functions. In addition to
port vehicles ties to prevent ment throughout requirements to
equipment engineers, the equipment line should involve maintenance personnel with must meet safety the risk of reac- the process to ef- prevent environ-
practical experience to participate in the assessment. requirements to tions caused by fectively mitigate mental pollution
Training of Risk Assessment Teams: ensure full-pro- contact between operational risks. incidents.
cess control and different types of
All team members must receive systematic risk identification training, conducted by
safety. chemicals.
experienced specialists or the Company's EHS personnel. Refresher training is provided
when methodologies are significantly updated, with complete training records main-
tained.
Guidelines for Environmental Risk Identification
Case Emergency Drill for Hazardous Chemical Leakage
Past Normal
Three Three States of
Present Abnormal
timeframes Operation We regularly conduct specialized
Future Emergency
training on chemical safety, cov-
ering chemical properties, oper-
Environmental
Risk Factor
ating procedures, and emergen-
Physical Factors Identification cy response to leakage incidents.
Chemical Factors Workplace Activities Practical drills are organized to
Biological Factors Supplier Operations
Sources of Related enhance employees’ emergency
Psychological and Physiologi- Material and Equipment
cal Factors Risk Factors Activities response capabilities and ensure
Shipment and Installation
Behavioral Factors Waste Disposal and Shipment effective implementation of
Other Factors management systems. Changzhou Quectel's Hazardous Chemical Leakage Response Drill
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Environmental Education and Pollutant and Waste Management
Awareness We strictly comply with applicable environmental laws and regulations, and have established internal policies,
We continue to strengthen our company-wide environmental management system through including the Solid Waste Management Policy, the Hazardous Waste Management Plan, and the Guidelines for the
structured and tiered training programs, significantly enhancing environmental awareness Operation of Waste Gas Treatment Facilities. We also hold valid pollutant discharge permits, and continuously
and safety practices among employees and stakeholders. strengthen our waste management system to ensure that all emissions meet relevant standards.
Environmental Awareness Training
In 2025, we had no environmental non-compliance incidents.
We integrate environmental principles throughout our operations and organize
annual training programs across factories, R&D centers, and functions including re-
sources, procurement, quality, and business operations. Training content covers in-
terpretations of relevant law and regulatory requirements, workplace environmen-
tal standards, pollutant compliance management, electronic component recycling Wastewater discharge management target:100% compliance
practices, and customer environmental requirements. These initiatives effectively
enhance employees’ environmental responsibility and operational capabilities, sup- Waste gas emission management target:100% compliance
porting our green operations.
Waste Management Targets:
EHS Training for New Hires
Changzhou
Quectel
We achieved 100% coverage of EHS training for 100% compliance rate for waste disposal testing, and 100% compliance rate for
new employees, systematically addressing en- the collection and disposal of hazardous waste
vironmental, health, and safety fundamentals. 2026 Target:
This ensures that new hires develop strong To reduce waste generation by 5% compared to 2025.
awareness of environmental protection and
work safety from the outset, facilitating the ef-
fective translation of knowledge into practice.
Linyi Quectel
Environmental Knowledge 2026 Target:
Training To ensure industrial and domestic wastewater discharge remains within
regulatory limits, ensure timely treatment of waste gas emissions, and
reduce solid waste generation, particularly hazardous waste.
Environmental Training Performance in 2025
Penang Quectel
Total training hours Total participants 2026 Target:
To establish waste reduction targets based on 2025 performance data, and
achieve further improvements in landfill diversion rate (approximately 70%
hrs participants
achieved to date)
Statistical Scope: Changzhou Quectel, Linyi Quectel, Penang Quectel, and Quectel Global Headquarters
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Pollutant Emission Management Waste Gas and Wastewater Emissions
We strictly comply with environmental protection regulations, regularly monitor waste
gas and wastewater emissions, and ensure continuous compliance. Through source con- Indicator Unit 2025
trol (long-term use of lead-free materials), process optimization, and the application of
low-emission technologies, we systematically reduce air pollutant generation. Waste Gas Emissions
For fumes generated during soldering processes, emissions are centrally collected through
a gas collection system and treated using purification equipment. After the treatment of
activated carbon adsorption and filtration, emissions are discharged through elevated Particulate Matter (PM) Gram 0.35
stacks, ensuring efficient pollutant control and compliant emissions. We do not generate
industrial wastewater. VOC (non-methane hydrocarbons) Tons 0.329
Environmen- Discharge
Source Pollutant Type Treatment Technology Wastewater Discharge
tal Element Method
•Dust removal facilities Total Wastewater Discharge Tons 181,422.35
Volatile organic (baghouse dust collectors
compounds (VOCs, Organized + secondary activated
including non-meth- emissions carbon adsorption) and VOC COD Tons 3.6
Air emissions Waste gas
ane hydrocarbons), Fugitive treatment facilities
particulate matter, emissions •Routine maintenance Biochemical Oxygen Demand (BOD)
and tin dioxide and upgrades of emission Tons 3.6
Discharge
treatment equipment
Total Nitrogen Discharge Tons 1.56
Our wastewater primarily consists of domestic sewage and a small amount of cleaning
water. Key controlled pollutants include chemical oxygen demand (COD) and ammonia nitro- Ammonia Nitrogen Discharge Tons 1.1
gen. During the reporting period, we engaged qualified third-party institutions to conduct
wastewater testing, with all results meeting applicable standards.
Total Phosphorus Discharge Tons 0.04
We have also established an IoT-based water environment management platform that
integrates real-time data on water quality, pumping stations, and operations to enable
intelligent monitoring and early warning. The system supports IoT control over key areas, Wastewater Discharge Intensity Tons per RMB 10,000 of revenue 0.075
automatically stars and stops the reclaimed water pumping stations, and intelligently reg-
ulates drainage based on dry and flood seasons. Under a separated drainage system, we
Statistical Scope: Changzhou Quectel, Linyi Quectel, and Penang Quectel
have upgraded terminal discharge nodes and enabled IoT connectivity via optical fiber or
Note: The statistical scope expanded this year, leading to a rise in the corresponding figures.
mobile networks. Rainwater is directly discharged during dry weather, while initial rainwater
is pumped into the sewage network. The entire process is traceable and controllable, en-
Waste Management
hancing intelligent and refined water management.
Environmental Discharge
Source Pollutant Type Treatment Technology
Element Method
We strictly comply with applicable laws and regulations and fully implement our internal policies,
After anaerobic fermen- including the Solid Waste Management Policy and the Regulations on Scrap Materials Manage-
Domestic
Water pollut- sewage
COD, ammonia ni-
Indirect dis-
tation treatment, it is ment. We standardize the full lifecycle management of solid waste, including declaration, col-
trogen, suspend- discharged to municipal lection, storage, transfer, utilization, and disposal, to ensure compliance and effective control at
ants Water for charge
ed solids, etc. sewage treatment facili-
cleaning
ties.
every stage.
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Solid Waste Management Framework
The Company's Primary Responsible Person Plant EHS Department Production and Operations Personnel
•Responsible for overseeing the day-to-day operation of environmental
•Responsible for establishing environmental manage- •Responsible for organizing departmental training
management functions, and organizing employees to study and imple-
ment functions, guiding and supervising the work of on the Company's hazardous waste management re-
ment environmental protection laws, regulations, and relevant provisions,
environmental protection functions, approving and quirements and regulations, and strictly implementing
enhancing environmental protection awareness.
supervising the implementation of hazardous waste identification, training, collection, and registration of
•Formulate and revise the Company's hazardous waste pollution pre-
pollution prevention plans, and approving environmen- hazardous waste by type.
vention management systems, supervise, inspect, and coordinate their
tal protection management systems, documents, and
implementation, manage daily hazardous waste pollution prevention work,
reports.
maintain records and registers, and ensure timely disposal
Waste Cate- Waste Generation
Pollutant Type Treatment Technology
gory
Waste Category Unit 2025
Waste solder paste, house-
•Partially recycled and reused; the remainder is collected and treated by quali-
Non-hazard- hold waste, baghouse dust,
fied third-party service providers.
ous Waste reverse osmosis membranes,
•Changzhou Quectel has achieved 100% recycling of non-hazardous waste. Total Waste Generation Tons 1,904.79
construction waste
Hazardous (Dangerous) Waste Genera-
•Treated through incineration or harmless disposal followed by resource recov- Tons 75.19
tion
Used activated carbon, waste ery, handled by licensed hazardous waste contractors.
cleaning solution, defective •Classification and labeling system implemented: green labels for recyclable
Hazardous
products, used rags, waste waste and red labels for hazardous waste to enable visual management. Non-hazardous Waste Generation Tons 1,829.60
Waste
filters, packaging waste, and •Clearly defined collection stations with complete transfer records and haz-
used cleanroom cloth ardous substance identification Standardized hazard identification signage at
storage facilities to ensure traceability and regulatory oversight. Statistical scope: Changzhou Quectel, Linyi Quectel, and Penang Quectel
Note: The statistical scope expanded this year, leading to a rise in the corresponding figures.
Cleaner Production Awards received by the Changzhou Quectel
We continuously advance cleaner production by prioritizing the use of clean energy, low-emission processes, and energy-efficient equipment. Through
strengthened internal supervision mechanisms, we conduct regular full-process inspections and evaluations to promptly identify and rectify potential
risks, ensuring environmentally efficient operations across our production system. Leveraging industrial big data platforms, we perform in-depth analysis
of production and quality data to optimize capacity allocation and enable precise traceability of defective products, significantly improving operational
efficiency. Meanwhile, key cleaner production initiatives at Changzhou Quectel, including stencil squeegee upgrades and PV power generation, have effec-
tively reduced both waste generation and carbon emissions.
“2024 Advanced Collective 2025 Certified Enterprise of
Currently, Changzhou Quectel has achieved Level II cleaner production standards in the electronic components industry (domestically advanced level). for Cleaner Production Audit Cleaner Production Audit
These achievements have been recognized with industry awards, demonstrating our leading capabilities in green manufacturing and sustainability. Innovation Pilot Program in Wujin Innovation Pilot Program in Wujin
High-tech Zone” High-tech Zone”
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Noise Management Optimizing Energy Consumption
We place strong emphasis on noise control and strictly comply with the Emission Standards for Industrial
Enterprise Noise at Boundary. Noise control measures are comprehensively implemented across techni-
cal, managerial, protective, and compliance dimensions. During the reporting period, all boundary noise
Energy Consumption Management System
levels complied with applicable standards. In compliance with applicable laws and regulations, we are committed to establishing and continuously im-
proving a systematic energy management framework. Through multi-dimensional measures, including tech-
Noise Control Measures nological upgrades, equipment optimization, institutional standardization, and the adoption of clean energy,
we have comprehensively enhanced energy efficiency.
We have formulated the Energy Consumption Management Policy, under which energy use across different
Technical Noise Reduction Measures areas and forms within our facilities is classified and managed. Tailored energy-saving measures are imple-
mented based on the operational characteristics of each business unit, with clearly defined usage standards
Implement sound insulation, noise reduction, sound absorption, and vibration damping and conservation targets, enabling refined and standardized day-to-day energy management.
modifications to production equipment. Dedicated soundproofing devices are installed
for high-noise equipment to reduce noise at the source and limit transmission.
Energy Data Energy Con- Formulation and Abnormality Analy-
Collection and sumption Implementation of sis and Corrective
Consolidation Analysis Technical Upgrade Action
Plans
Engineering and Facility Protection
Comprehensively Analyze energy Identify high Promptly inves-
Install sound barriers, acoustic panels, and sound-absorbing materials in operational ar- collect energy consumption energy-consum- tigate the root
consumption data, mixes, trends, and ing or optimiza- causes upon
eas. Dust collection and occupational health protection equipment are also deployed to
such as water and indicators with tion-prone pro- detecting abnor-
achieve coordinated control of noise and airborne particulates. electricity, across science-based cesses based on mal consumption
all managed sites, methodologies analysis outcomes, in regular mon-
and ensure data based on com- propose technical itoring, formu-
accuracy before piled energy upgrade solutions, late corrective
consolidation. statistics. and implement measures, and
Employee Health Protection them after feasi- implement them in
bility evaluation. a timely manner to
minimize waste.
Provide employees exposed to noise with appropriate PPE, such as earplugs, and reduce
exposure risks through equipment isolation and workplace environment optimization.
Monitoring and Compliance Management Energy Consumption Management Procedure
Establish noise control objectives and regularly conduct noise and occupational haz-
In 2025, our total investment in energy-saving technological upgrades amounted to RMB
ard factor testing at the factory boundary.
Statistical Scope: Changzhou Quectel, Linyi Quectel, Penang Quectel, and Quectel Global Headquarters
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Energy Conservation and Efficiency Improvement
We focus on energy conservation and consumption reduction by exploring energy-saving potential through technological R&D, equipment renovation, process optimization, and management up-
grades, continuously enhancing energy utilization efficiency.
Energy
Energy
sys- Measures Energy-Saving Effects Measures Energy-Saving Effects
system
tem
•Optimize the number of lights turned •Recover and reuse waste heat from work-
Light- on and their operating hours based on shops during winter, improving hot water
ing •Adopt energy-saving lighting fixtures
actual working conditions, and install HVAC •Optimize automatic control logic for heat temperature and reducing reliance on steam
•Optimize lighting in workshops, warehouses, and
Sys- lighting sensors in the warehouse to ef- System recovery systems while ensuring process temperature and hu-
dormitory corridors
tem fectively reduce electricity consumption midity requirements, thereby lowering energy
and costs. costs.
•Activate small-capacity air compressors dur-
•Adopt “large equipment for small load”
ing low-load production periods to reduce the
Air Com- operational strategies during low-load
operation of large-capacity equipment, there-
pressor conditions
•Select air conditioning equipment with Level 2 en- •Optimize the load rate of the HVAC units by lowering recovery costs
Manage- •Install variable-speed air compressors
ergy efficiency or above and implement phased to avoid their operation under unneces- •Utilize intelligent load adjustment functions
ment for dynamic load adjustment based on
operational management sary high load conditions, thereby reduc- to achieve on-demand energy supply and effi-
real-time demands
•Upgrade the intelligent temperature control ing ineffective energy consumption; ciency improvements.
system to dynamically adjust the cooling water •Integrate intelligent temperature con-
supply based on indoor temperature trol with a phased operation strategy to
•Continuously optimize the HVAC control system further reduce overall energy consump- •Control the minimum usage of liquid ni-
to enhance overall energy efficiency tion and GHG emissions. trogen
•On-site nitrogen generation reduces energy
•Increase the use of nitrogen generators
losses associated with cryogenic storage and
•Real-time adjustment of liquid nitrogen
HVAC transportation of liquid nitrogen.
Nitrogen production helps reduce evaporation
Sys- Usage losses from storage.
tem Manage-
ment
•Manage shift-based production scheduling to
•Precisely control the energy consump- •Regularly inspect air compressor pipe-
maintain cold storage temperature and humidity •Identify leaks and insulation damage promptly
tion of the cold storage to reduce un- lines and maintain air conditioning pipe-
while shutting down unnecessary auxiliary facili- to reduce the failure rate;
necessary electricity usage. lines
ties
Mainte-
•Avoid energy waste caused by poor clo-
nance
•Seal reserved ventilation openings in workshops sure of ventilation openings reserved for •Monitor the operational status of electric •Ensure that our power factor in the electrical
and
with plastic film workshop exhaust and air conditioning components system is maintained above 0.9.
Upkeep
in the mezzanine.
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Energy Consumption Targets and In-
Case Green Plant Construction at Changzhou Quectel dicators
Changzhou Quectel has comprehensively advanced green factory development, with a focus on 2025 Target Achievement: Achieved the 2025 target of generating over RMB
energy conservation and efficiency. By optimizing building energy performance, adopting clean Changzhou
energy, and deploying intelligent control systems, we have created a low-carbon, efficient, and sus- Factory
tainable modern production environment. initiatives, with actual investment reaching RMB 216,900.
Air Compressor Heat Recovery:
•Recover waste heat generated by the operation of compressors;
•Reduce the load on chillers during the cooling process and the demand for 2026 Target: To save energy and reduce consumption, ensuring that the
regional heating; energy consumption growth rate is lower than the regional expansion rate
•Achieves up to 1,250 kW of heat recovery in winter. Linyi Factory
while increasing operational areas; and standardize air conditioning usage
Waste Heat
Recovery Chiller Heat Recovery: and advocate for electricity conservation.
•Recover waste heat from the production workshop to serve as a heat source
for the air conditioning system;
•Reduce steam consumption;
•The maximum heat recovery power in winter can reach 5,300 kW, resulting in 2026 Target: To establish energy-saving and efficiency improvement tar-
significant energy savings. Penang Quectel
gets for FY2026 based on 2025 energy performance data.
Natural Cooling of Cooling Towers:
•Recover cold air sources in winter for chilled water exchange cooling;
Cold Air Recovery
•Optimize chiller operation during shift changes and holiday shutdowns;
and Utilization
•Maintain energy efficiency even during partial production operations in win-
ter. Energy Mix Unit 2025
•Implement remote control of HVAC systems to improve energy efficiency and Total Purchased Electricity kWh 71,853,300
reduce costs;
Centralized HVAC
•Monitor system operation and temperature settings in line with recommend-
Control Purchased Steam MJ 1,873.54
ed standards;
•Reduce and eliminat unnecessary operations due to unattended systems
Total Gasoline Consumption Tons 16.84
Liquefied Petroleum Gas Consumption Tons 3.46
Renewable Energy Consumption Total Energy Consumption Tce 8,925.40
Tce per RMB 10,000 of
Energy Intensity 0.004
Both Quectel global headquarters and Changzhou Quec- revenue
tel have deployed high-efficiency PV power generation
Total Renewable Energy Consumption kWh 2,711,700
systems. Through the coordinated operation of rooftop
PV arrays and intelligent energy storage systems, solar Proportion of Renewable Energy Consumption
% 5.3
energy is continuously converted into clean electricity. This (Only for Changzhou Quectel)
significantly improves electricity self-sufficiency rate of
electricity for daily operations and effectively reduces reli- Statistical Scope: Energy consumption at Quectel global headquarters and global offices, Changzhou Quectel, Linyi
Quectel, and Penang Quectel.
ance on conventional energy sources each year, reflecting Rooftop PV Panels at Quec- Rooftop PV Panels at Quec-
Note: Renewable energy is sourced from distributed rooftop PV systems. The PV system at the global headquarters
tel Global Headquarters tel Changzhou
our commitment to “leveraging technology to protect the is expected to become operational in 2026. The above renewable energy data reflects only Changzhou Quectel’s PV
(Installation area of 3,000 (Installation area of 19,000
environment and driving development through energy ef- square meters) square meters)
power generation in 2025, and the percentage calculation is limited to Changzhou Quectel. The statistical scope ex-
ficiency.” panded this year, leading to a rise in the corresponding figures.
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Water Resource Utilization Circular Economy
At Quectel, we strictly comply with relevant laws, regulations, and standards. We have established a water resource Raw Material and Packaging Man-
management team to promote water conservation efforts. By optimizing water use structure and integrating
municipal water supply with rainwater reuse systems, we ensure efficient management of both production and agement
domestic water use, significantly improving overall water efficiency.
Quectel implements standardized and modular design principles in raw materials and packaging
management, with strict control over the variety of packaging materials. By optimizing packag-
ing structures, adopting high-efficiency cushioning materials, and applying lightweight design
Water-saving Measures
approaches, we effectively reduce packaging size and weight. Current packaging materials
primarily include injection-molded trays, blister trays, carrier tapes, divider boards, and EPE trays.
Customization is limited to inner linings based on product specifications, while outer packaging
•Formulate and implement the Energy Consumption Management System to regulate
water use across all areas. Promot the principle of “turn off water when not in use” to adopts a limited number of standardized formats, significantly reducing material redundancy. In
reduce unnecessary consumption in restrooms and public areas; the future, we plan to select recyclable and environmentally friendly packaging materials. With
Water Management •Encourage employees to propose water-saving initiatives, supported by incentive a strong foundation for circularity, we are actively advancing the development of a packaging
System mechanisms;
recycling system to support the green transition across the entire packaging lifecycle.
•Implement real-time metering and data analysis of water usage, alongside regular
inspection and maintenance of pipelines to prevent leakage, achieving refined water
Circular Economy Initiatives
cost management.
•Establish an internal circulation system between cleaning machines and washing
Production Water lines to maintain continuous recycling when no maintenance is required, improving
We actively implement circular economy principles in strict compliance with the Circular Economy
Conservation Meas- water utilization efficiency;
•Install water meters and conduct data analysis to identify conservation opportuni- Promotion Law, continuously improving resource utilization efficiency, strengthening waste clas-
ures
ties and optimize water usage processes. sification and recycling systems, and advancing comprehensive green and sustainable develop-
ment.
Rainwater Harvesting •A 700 m? rainwater collection tank has been constructed at the Changzhou facility,
capable of meeting approximately 2 months of water demand when full, and support-
and Reuse ing around 484 m? of monthly irrigation for landscaping. Waste Classification and Compliant Disposal
Adopt classified waste collection and treatment. Recyclable waste is collected and re-
•Conduct water-saving awareness training to strengthen employees’ consciousness cycled by suppliers, while hazardous waste is handled by qualified third-party vendors
Water Conservation of water conservation and encourage participation in improvement initiatives; in compliance with regulations.
Culture •Advocate for the rational use of water and electricity resources in both office and
production areas, and foster a water-saving culture involving all staff.
Green Procurement and Material Optimization
Water Consumption
Implement raw material reduction, prioritize the use of renewable resources, and
Water Consumption Indicators Unit 2025 minimize the use of harmful substances.
Total Water Consumption (Municipal Supply) m3 273,156.69
Lightweight Packaging and Recycling
Water Consumption Intensity m3 per RMB 10,000 of revenue 0.112
Employ lightweight packaging and green design, gradually establish a recycling sys-
Recycled Water Volume m3 700 tem for raw materials and packaging, and promote the internal recycling of waste
cardboard boxes.
Statistical Scope: Water consumption at Quectel global headquarters and global offices, as well as Changzhou Quectel, Linyi Quectel,
and Penang Quectel.
Note: The statistical scope expanded this year, leading to a rise in the corresponding figures.
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Improvement of Equipment Energy Efficiency
Case “Keep It Green, Step by Step, FUN Market” Initiative
Adopt high-efficiency, low-energy-consumption, and long-lifespan equipment to en-
hance overall resource utilization efficiency.
During World Earth Day 2025, we organized a series of employee engagement activities themed
around “circular utilization” and “low-carbon living.” A “FUN Market” was set up, featuring zones for
second-hand electronic device recycling and charitable redistribution of used clothing, promoting
Recycling and Reuse of Electronic Devices the circulation and regeneration of idle resources. By combining interactive awareness campaigns
with tangible recycling mechanisms, the initiative enhanced employees’ environmental awareness
Actively collaborate with third parties to regularly collect office electronic devices for and fostered a culture of full participation and efficient resource utilization.
recycling and harmless disposal.
Advocacy for a Circular Culture
Organize activities themed around the circular
economy, promote the internal circulation
and regeneration of idle items, strengthen the
recognition of green culture, and create an or-
ganizational atmosphere where all employees
Case Giving New Life to Electronic Devices
practice the circular economy.
Carton Recycling at Changzhou Quectel
Quectel partnered with its collaborators to launch an electronic equipment recycling initiative,
advocating green technology and circular economy practices. The program offered real-time val-
uation plus a 10% cash incentive and strictly adhered to the 3R principles (Reduce, Reuse, Recycle)
Key Circular Economy Indicators Unit 2025 to ensure environmentally responsible disposal of obsolete devices.
In collaboration with suppliers, we processed 156 units of office equipment, including laptops,
Total Consumption of Materials Used printers, conference panels, and desktop computers, through internationally recognized 3R-com-
Tons 22,924.42 pliant methods. The process ensured no secondary pollution and provided official environmental
in Production and Packaging
recycling certificates upon completion.
Consumption of Renewable Materials Tons 1,790.59
Volume of Recycled and Reused Ma-
Green and Low-Carbon Operations
Tons 663.82
terials
Consumption of Non-Renewable
Tons 556.25
Materials
Total Recycled and Reused Waste Tons 1,810.14
Green and Low-Carbon Office
Recycling rate of waste % 95.03%
We actively promote green office principles by advocating energy-saving and low-carbon behaviors, advancing
water and electricity conservation, and implementing the Code of Conduct for Civilized Workplace Behavior. This
Statistical Scopes: Changzhou Quectel, and Penang Quectel code sets clear standards for rational energy use in office environments and encourages employees to adopt
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Green Product Design
low-carbon working habits. We have also established and continuously refined a series of management
policies, including the Maintenance and Repair Management Guidelines, the Office Renovation Manage-
ment Guidelines, the Indoor Plant Leasing and Placement Management Guidelines, and the Environmental
Hygiene Management Guidelines, to create a safe, comfortable, and environmentally friendly workplace Closely aligned with the low-carbon strategies of global telecom operators, we promote green development
for all employees. throughout the product design and manufacturing stages. By adopting cleaner production processes and
lifecycle-based green design principles, we strive to minimize toxicity, reduce resource consumption, and
New Green Office Initiatives in 2025 establish an efficient, clean, low-carbon, and circular production model.
Additionally, we reduce energy consumption through the application of advanced materials, innovative de-
sign, and optimized algorithms. Measures include material optimization, lightweight structural design, and
simplified circuitry. For example, standby power consumption of intelligent connectivity products is con-
Intelligent Express Delivery and Transportation Optimization trolled at extremely low levels (e.g., below 3 mA/12V), while peak power consumption is precisely managed to
reduce heat generation without compromising performance. These efforts support telecom operators in
Introduced the Express Delivery Management Guidelines and deployed an intelligent logis-
building greener 5G networks and enable energy conservation and emissions reduction across industries.
tics management system. By consolidating shipment demands across R&D centers and
promoting combined delivery, we have reduced the number of parcels from the source.
This reduces logistics-related energy consumption and carbon emissions, while also im-
Lightweight Design
proving cost efficiency.
Miniaturization Enabled by Lightweight and Highly Integrated Lightweight Design for
Low-Power Design — HCM511S MCU Blue- Industrial Applications — KCM0A5S Wi-SUN
Low-Carbon Awareness and Advocacy tooth Module Module
We organized offline green office campaigns, promoting initiatives such as “taking the
stairs instead of elevators,” and raising awareness of sustainable mobility. These efforts
encourage employees to integrate environmental consciousness into their daily work and The KCM0A5S adopts a compact LCC package
Designed for compact, low-power ap-
lifestyle. (28.0 mm × 22.0 mm × 3.15 mm), balancing
plications, the HCM511S features an ul-
lightweight design with high reliability. It sup-
tra-compact LCC package (16.6 mm × 11.2
ports a wide operating temperature range
mm × 2.1 mm) and weighs only 0.57 g, sig-
of -40°C to +85°C, meeting stringent indus-
nificantly optimizing device size and cost.
trial requirements. Based on IEEE 802.15.xg/
Its ultra-low-power Bluetooth 5.4 design
Green Mobility Solutions extends battery life and reduces mainte-
e standards and supporting the Wi-SUN FAN
Shared bicycle services have been deployed across all global R&D centers to address nance costs. Supporting +6 dBm transmit
self-healing networking capabilities, sup-
short-distance commuting needs for business travel and weekend mobility. This initiative power and high receiver sensitivity, it en-
ports bandwidth up to 2.4 Mbps, and scales
replaces motor vehicle use with low-carbon alternatives, effectively reducing emissions sures stable long-range connectivity and is
to thousands of nodes. It is widely applied in
from employee travel and supporting the global implementation of green office practices. widely used in smart locks, electronic shelf
smart metering, EV charging infrastructure,
labels, healthcare devices, and smart home
smart street lighting, and PV systems, ena-
applications.
bling efficient, stable, and cost-effective IoT
connectivity.
Advocacy for Rational Deployment of Shared
HVAC Usage Bicycles Intelligent Express Management System
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Case
Green Product Design: Smart PV Cleaning Robot for Low-Carbon O&M
Quectel integrates RTK centimeter-level positioning technology with its comprehensive GNSS module portfolio and global RTK correction network to provide one-stop
solutions for industries requiring high-precision positioning, such as PV cleaning robots.
Highly efficient, water-saving and environmentally friendly: AI-based contamination detection enables dry cleaning for light dirt (zero water consumption), while medium
to heavy contamination is addressed using micro-mist spraying combined with closed-loop water recycling. Water consumption is controlled at ≤1.5 liters per m?, achiev-
ing over 85% water savings compared to traditional methods. The system is compatible with neutral eco-friendly agents, eliminating VOC emissions and heavy metal pol-
lution.
.Precise cleaning and damage reduction: By integrating SLAM and 3D vision technologies, the system achieves centimeter-level navigation and full-coverage cleaning,
avoiding missed or excessive cleaning. This reduces hotspot effects and extends the lifespan of PV panels.
Multi-scenario adaptability and efficiency enhancement: Cleaning improves power generation efficiency by 5%–30%. A single unit can service up to 10,000 m? annually,
indirectly reducing over 10 tons of CO₂ emissions and lowering the overall carbon footprint of operations.
Safeguarding the Ecological Environment
Quectel complies with the Convention on Biological Diversity and leverages its strengths in digital technology innovation to develop intelligent safety systems and ecological restoration solutions.
These efforts inject technological momentum into biodiversity conservation and environmental protection.
Measures for Ecological and Biodiversity Protection
Project Site Selection and Construction Technology-Enabled Wildlife Conservation Supporting Forest Protection and Risk Monitoring
We strictly adhere to applicable laws, regu- Leveraging our technological advantages, our In the field of forest and wild plant conservation, we deploy
lations, and ecological redline requirements, communication module products are applied terminal equipment with our 5G modules to address chal-
and refrain from undertaking construction in animal tracking and geographical scientific lenges such as complex terrain, wide coverage, and high
projects within protected or ecologically research. We accurately provide data on the fire risk. These systems enable all-weather, full-coverage,
sensitive areas. During the development of migration trajectories and activity ranges of long-range positioning , allowing precise control of fire risk
our global headquarters, we implemented wild animals (such as the Amur tiger, sika deer, points and real-time transmission of high-definition images
green construction practices and built a wild boar, roe deer, raccoon dog, Chinese rural to command centers, thereby strengthening forest eco-
garden-style office complex, minimizing dog, crested honey buzzard, and common system protection. In addition, intelligent devices are used
environmental disturbance and supporting kestrel), assisting in the collection of biological to detect abnormal sounds such as chainsaws or unau-
ecological balance in the surrounding area. information samples in extreme environments, thorized vehicle entry. These systems provide early warn-
thereby providing strong support for biodiver- ings of illegal logging activities, enabling timely intervention
sity conservation efforts. and safeguarding forest biodiversity.
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Product and Service Quality 36
Driving R&D Innovation 42
Digital and Intelligent Development 46
Adhering to Technological Ethics 49
Data Security and Privacy Protection 49
Supply Chain Security 52
People-Oriented Approach 58
Occupational Health and Work Safety 70
Society
Rural Revitalization Initiatives 73
Social Contribution 74
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Product and Service Quality Quality and Service Management-Related Systems
Governance Quality System Development: 99 first and second-level system documents, 920 third-level standard
system documents, and 560 third-level product operation guidelines.
At Quectel, we strictly comply with applicable laws and regulations and uphold our quality policy of “being
customer-centric, innovation-driven, quality focused, and excellence-oriented, committing to empow-
ering global IoT development.” We have established a closed-loop quality management system covering Quality Manual
Continuous Improvement Control Procedure
the entire business value chain and built a well-structured quality management organization with Project Development Quality Management Procedure
Corrective and Preventive Action Control Procedure
Monitoring and Measurement Resources Control Proce-
clearly defined roles and responsibilities. This framework has ensured comprehensive lifecycle quality Nonconformance Control Procedure
dure
management of our products. Our teams cover the full spectrum of responsibilities, including suppliers, Incident Investigation and Handling Procedure
Quality Cost Control Procedure
Warranty Policy and After-Sales Specifications
R&D, manufacturing, and quality control. Through a dedicated role-based accountability system and full Product Monitoring and Measurement Control Procedure
…………
lifecycle tracking and monitoring, we assigned quality responsibilities across each process stage. We Production Management Procedure
have also established cross-functional collaboration mechanisms, integrating R&D, manufacturing, pro-
curement, and sales functions to form a governance model featuring company-wide participation and
end-to-end quality control, thereby laying a solid organizational foundation for the effective operation
of the quality management system.
We have deeply engaged in quality control and improvement work, establishing a closed-loop manage-
ment system that covers the entire business chain. It covers APQP management for new projects, soft- Quectel's Quality Certification Systems
ware and hardware development and testing processes, manufacturing quality control specifications,
and supplier quality management specifications, forming a comprehensive quality control mechanism
from “demand proposal - R&D design - production delivery - after-sales support.”
We have obtained ISO9001 and IATF16949 quality system certifications and have consistently maintained
the validity of these certifications. Additionally, we closely monitor the quality certification status of our
contract manufacturers and overseas factories, ensuring that relevant certifications remain valid.
Quality Department Management Structure
Quality Director Quectel Changzhou’s
Quectel's ISO 9001 Quectel's ISO 26262 Quectel's CMMI DEV
IATF 16949 Automotive
Quality Management Automotive Function- V2.0 Maturity Level 3
Quality Management
System Certification al Safety Certification Certification
System Certification
Quality Manager
Quality Management Process
Advance Planning
Supplier Quality R&D Quality Man- Process Quality System and Docu- and Control Pro- Supplier Quality
Process Control After-sales Control Change Control
Management agement Management ment Control Center gram for Product Control
Quality
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Impact, Risk, and Opportunity Manage-
Quality Platform Development ment
Quectel Wireless Solutions has established a risk management system covering the entire product lifecycle,
strictly following a closed-loop approach of “risk identification – risk analysis – risk evaluation – risk control.”
Advanced Laboratory Equipment and Fully Automated Pro- We have formulated the Control Procedure for Measures Addressing Risks and Opportunities, embedding risk
management into all stages, including product R&D, supply chain management, manufacturing, market deliv-
duction Lines Effectively Ensure Product Quality ery, and after-sales operations.
Product Quality and Safety Risk Assessment
We have established a potential product risk early warning mechanism. Based on product characteristics
and application scenarios, we systematically identified risk points and communicated them accurately to
Total Laboratory Number of Laboratory Global customers.
Area Testing Devices Certifications
• Upon product delivery, we provide the Product User Manual and the Risk Warn-
ing Manual, clearly specifying the scope of application, operating procedures,
potential risks (such as RF radiation, electrostatic discharge protection, and
cation • For high-risk scenario products such as automotive and medical applications,
we additionally issue a special risk notification letter upon delivery, detailing
safety precautions and procedures for handling abnormal situations.
•Our Intelligent Manufacturing Center works with manufacturing partners to ensure a stable
• By tracking updates to industry technical standards, customer feedback
supply chain.
data, and failure statistics analysis, we identify new potential risks in a timely
•Advanced testing equipment supports a comprehensive range of test items under strict
manner and quickly issue risk warning notifications and response guidelines.
testing criteria, and guarantee the stability of customer applications.
Risk Warning • For identified common risks, we immediately initiate technical upgrades, pro-
•Our certifications cover global markets, helping customers accelerate their global business
cess optimization, or recall and rectification procedures. We also organize
expansion.
customer training and provide guidance on risk prevention and control, min-
imizing risk impacts and ensuring product safety throughout the lifecycle.
Strategy
At Quectel, we adopt a customer-first approach as our core strategic orientation and incorporate product
• In line with the characteristics of the IoT module industry and compliance re-
and service safety and quality risk management into our overall strategy. Through lifecycle-based risk identifi-
quirements in key sectors such as automotive applications, we have estab-
cation, control, and evaluation, we strengthen the foundation for delivering high-quality products and servic- Risk Screening lished standardized risk screening procedures to ensure early identification,
es. We will continue to deepen our technological capabilities, comprehensively enhance product quality, and
assessment, and mitigation of health, safety, and quality risks.
strengthen the development of our marketing and technical support teams. By closely aligning with techno-
logical advancements and evolving market demand, we aim to build a more competitive product and service
portfolio, expand market share through quality excellence, and precisely meet customer needs.
Being customer-centric, innovation-driven, quality focused, and excellence-orient- In 2025, we identified 27 process risks for analysis and control.
Quality Policy
ed, committing to empowering global IoT development.
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Product Quality Assurance Across Lifecycle Stages In accordance with domestic chemical control standards and EU regulations, including the Restriction of
Hazardous Substances (RoHS) and the Registration, Evaluation, Authorization and Restriction of Chemicals
End-to-End Project Quality Control (REACH), we strictly control the use of hazardous substances such as lead, cadmium, and polybrominated
biphenyls (PBB). Based on customer requirements, we have formulated the Management Specification for
• Develop project quality plans, clearly defining targets at each stage to guide full-process manage-
ment. Prohibited Hazardous Substances to ensure the quality of raw materials and components from the source
• Implement lifecycle tracking and conduct internal evaluations to identify quality gaps and ensure and prevent the release or decomposition of hazardous substances throughout the product lifecycle.
closed-loop corrective actions.
• Conduct routine project reviews to identify process risks and implement control measures, reducing
potential quality issues.
• Leverage failure analysis laboratories to implement product testing to verify compliance, analyze po-
tential risks, and formulate preventive measures. We also conduct pre-mass production evaluations, Quectel's Hazardous Substance Control Process
anomaly identification during mass production, and post-production reviews and improvements to
ensure stable product quality.
If prohibited substances are found in the production process, immediately report to the on-
site quality team and isolate the materials.
R&D Quality Management
• Standardization: Improve quality management standards assessment in line with customer needs The RoHS specialist investigates the cause and scope of the non-conformance.
and acceptance standards, to meet quality requirements.
• Process Optimization: Establish an independent quality control process, clarify customer complaint
handling procedures and responsibilities, and standardize documentation to improve efficiency.
• Capability Enhancement: Organize targeted R&D quality training programs covering core areas to The RoHS specialist proposes corrective measures for the non-conformance and follows up
strengthen team quality awareness.
• Process Upgrade: Integrate product and PCBA quality testing to prevent material mix-up risks and en- on corrective actions.
sure stable R&D quality.
For issues involving customers and environmental concerns, corrective actions are imple-
mented after obtaining customer consent.
Production Quality Management
• Apply Statistical Process Control (SPC) to monitor production quality data in real time, identify sources RoHS Environmental Hazardous Substance Abnormality Handling Process
of variation, and reduce quality fluctuations.
• Establish rapid response mechanisms to efficiently address on-site abnormalities and customer
feedback.
• Strengthen waterproofing and antenna consistency control for key products such as automotive
radar to enhance production stability and efficiency.
Case Promoting Quality Culture
The Company regularly organizes employee training activities to en-
Product Recall hance employees’ awareness of quality responsibility and professional
skills, and makes sure that they have a profound understanding of the
quality control process, thus ensuring the efficient execution of all qual-
• All subsidiaries have established a defective product recall and handling system, with well-defined
and strictly implemented recall procedures and standardized disposal protocols for non-conforming ity-related tasks. In 2025, the Quality Department organized 31 quality
products. We maintain close communication with customers, continuously track and report incident culture training sessions, covering topics such as quality tools, lesson
handling progress, and provide effective solutions. learned sharing, system standards, document processes, environmental
regulations, and special customer requirements, empowering quality
personnel and improving product pass rates.
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Responsible Marketing Enhancing Product Accessibility Through Knowledge Dissemination
To uphold responsible marketing principles and strengthen compliance safeguards across domestic and Sales Employees Partners(Agents + Clients)
international markets, we have embedded compliance requirements throughout the entire marketing
lifecycle and implemented multiple measures to ensure effective execution. We have fomulated a compre-
hensive set of internal policies, including Brand Management Guidelines, PR and Marketing Communications In 2025, we delivered 45 training sessions In 2025, we conducted a total of 360 online
Guidelines, Brand VIS Management Measures, Management Guidelines for Offline Brand Activities (Exhibitions for domestic sales teams and 24 ses- and offline training sessions for domestic and
and Seminars), Online Activity Process Guidelines, and Technical Support Department External Service and sions for overseas sales teams through international clients and agents, covering
Documentation Management Guidelines. These policies set forth the fundamental principles of accuracy, a combination of in-person instruction mainstream product technologies (including
objectivity, and rigor for all product communications, and comprehensively regulate brand management, and online learning platforms. Training introductions, promotions, and common issue
marketing communications as well as online and offline promotional activities. topics covered product knowledge, sales troubleshooting analyses for Python, Smart
Meanwhile, we have developed a strict review mechanism for marketing materials, specifying that all mar- techniques, system operations, etc. The modules, 4G/5G standards and Open solutions,
keting materials must be authorized and approved by the Company before being released externally, en- sales team actively participated in various short-range and GNSS modules, etc.) as well as
suring that promotional content is legal, compliant, and trustworthy. In addition, we place great importance public training sessions organized by the practical skills (such as instrument operation).
on cultivating our sales team, and enhancing product knowledge training and professional development, Company to enhance professional compe-
striving to build a sales and customer support team with a strong sense of responsibility and high integrity. tence and strengthen compliance aware-
ness.
Provide network access capabilities for a vast number of global terminal
customers, ensuring connectivity for industries across the globe.
Adherence to the interna- Case Live Streaming via New Media to Promote Product Knowledge
tionalization strategy
Our business coverage spans over
live-streaming series, leveraging digital tools to break
geographical barriers. In 2025, we hosted 60 live sessions,
attracting over 219,000 online viewers, significantly en-
hancing both the efficiency and coverage of knowledge
dissemination.
Enhancing Customer Service
We have established various customer service policies, including the FA Failure Analysis Workflow, the
Customer Issue Management Process for the Technical Support Department, and the Return Material Au-
thorization Instructions. We are committed to providing customers with timely, high-quality products and
services, delivering 24/7 uninterrupted support to respond to customer needs at any time and ensure an
efficient and premium service experience.
• Our sales channels cover China, Europe, North America, Asia, Africa& Latin America, and other In handling customer issues and providing technical support, we implement an online digital tracking
global regions. system to monitor issues separately for overseas and domestic clients. Through our online “Customer
• Our strong brand presence and sales channel advantages drive the rapid development of Support” platform, we regularly push the latest firmware updates and technical documentation, ensuring
new business. customers have timely access to critical information. In addition, we have established a technical forum
• We maintain close collaboration with global mainstream operators and other industry chain and deployed the Chatbot on our official website to further expand communication channels and enable
partners. rapid response to customer inquiries.
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Customer Technical Support Service System Customer Complaint Handling Mechanism
Quectel adheres to the principles of “rapid response, accurate root-cause analysis, effective resolution,
Antenna Antenna and continuous improvement.” For all customer feedback and complaints, we ensure that every case is
Modeling Design
properly received, managed, resolved, and followed up. We have established a comprehensive complaint
handling system covering all business scenarios, with a tiered response mechanism involving technical
support teams, quality engineers, and R&D personnel. Responsibilities are clearly defined across depart-
Proto- Mass Pro- ments to ensure effective resolution and full protection of customers’ rights and interests.
Product Modeling 》 Product Design 》 》 Testing 》 》 Quectel Module
typing duction
Customer Complaint Handling Process
Customer Technical Support Channels
Collection and Analysis
Responsibility Identifica- Complaint Response
of Customer Complaint 》 》 》 Execution and Monitoring
tion and Feedback Handling
Information
Enhancing After-Sales Service Quality
On-site Support Phone Support Customer Remote Service Email Response Q&A on BBS and QQ
Self-Service Work
Complaint Data Mechanism Optimiza- Specialized Handling
Order System Analysis tion and Prevention and After-Sales Support
Empowering Customer Service/Technical Support Personnel • We regularly analyze • We conduct post-case • A dedicated failure
complaint data and reviews to refine re- analysis team within
summarize key issues sponse mechanisms and the FAE Department is
• Leveraging our departmental Confluence platform, we have built a structured knowledge to form quality im- improve contingency responsible for handling
base and knowledge-sharing environment to encourage experience sharing and technical provement reports. plans. complaints, identifying
Knowl- retrospectives. In 2025, we accumulated a total of 2,904 technical knowledge articles and • We convert common • We strengthen team root causes of module
edge customer case studies.
issues into optimiza- training to shift from failures, and providing
• We organized a “Best Insights” selection every two months to identify and promote
Sharing tion criteria: optimiz- reactive resolution to optimization recommen-
high-quality contributions. The top 3 contributors received performance incentives, effec-
tively encouraging the creation of high-value content. ing product testing proactive prevention, dations to customers.
standards, upgrading reducing complaints • We communicate with
customer service pro- from the source and customers regarding
• We strengthened engineers' English capabilities through structured training programs, cesses, and providing strengthening customer repair requests. When
English including group-based learning, study of BBC News materials, and online paired speaking dedicated one-on- trust. repair or return is neces-
Learning practice with overseas colleagues. one services for major sary, sales and commer-
projects. cial teams intervene to
reach an agreement, af-
ter which the after-sales
• For new employees, we have established a comprehensive training system covering both RMA process is initiated.
foundational processes and advanced technical capabilities, standardizing their customer
communication capabilities.
• In 2025, we conducted 790 technical training sessions for all employees, including 38 over-
Technical seas training sessions with over 820 participants.
Training • We also successfully organized two cohorts of overseas FAE engineers for two-week im- Average Customer Complaint Re- Average Customer Complaint Res-
mersive exchange programs in China. Through a “theory + practice + review” approach, sponse Time olution Time
participants engaged in in-depth discussions on new projects and core development tech-
nologies, including short-range communication and smart modules.
hrs hrs
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Customer Satisfaction Management
Indicators and Targets
We establish product- and service-related targets and indicators in accordance with the Control Procedure for
At Quectel, we have always adhered to the principle of “serving customers better”. We have estab- Objectives and Indicators Management Plan, and conduct regular assessments of annual performance.
lished systems such as the Customer Satisfaction Control Procedure to standardize the customer
satisfaction survey process for both domestic and international clients. We regularly investigate and
analyze customer satisfaction across 14 dimensions, including quality, service, and products. We have
deployed the e-service customer system in overseas markets and adopted the JSD system in the Indicator Target Progress in 2025
domestic market. Both systems include an online customer satisfaction survey after each service
support session. Once the issue is officially closed, customers can provide feedback on the engineers’ Achieve established
Product Pass Rate Product pass rate was 99.82%, target achieved
service performance, professional expertise, product compatibility, and other dimensions. target
Product Recall Rate 0% Completed (No recalled products)
Customer Satisfaction Control Process
To e n s u r e t h a t o u r
• In 2025, we completed 1,300 domestic and interna-
products comply with
tional regulatory certifications, including China's CCC,
international market
NAL, and SRRC certifications, as well as overseas cer-
Customer Satisfaction requirements, we have
Customer Customer Satisfaction Customer Satisfaction tifications such as EU CE, US FCC, Canada IC, Japan JATE,
Survey Report and Con- obtained both domes-
Feedback Survey Evaluation Product Compliance TELEC, South Korea KC, and Brazil ANATEL. Among these,
tinuous Improvement tic and international
Certification there were approximately 260 domestic regulatory
market access certifi-
certifications and over 1,000 overseas regulatory cer-
cations based on the
tifications.
market and customer
• We have cumulatively obtained over 8,700 product
needs for different
certifications.
product models.
Case Creating Value for Customers Major Safety and Quali-
ty Incidents Related to 0 Achieved
Products and Services
In 2025, we received thank-you letters and “Outstanding Partner” awards from customers
across different countries, recognizing the quality and effectiveness of our customer ser-
vice. Marketing Compliance
Violations
Customer satisfaction: 91.8%
Customer Satisfaction
Over 90% Customer technical support (FAE) satisfaction: Domes-
Rate
tic: 99.5%; Overseas: 98.26%
Customer Complaint
Over 90% 92%
Resolution Rate
Customer Complaint
Response Rate
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Driving R&D Innovation historical data, our R&D department developed internal standards such as the Special Improvement Re-
ports and new product deployment plans.
We have driven the transformation of project development processes toward systematization and dig-
Governance
italization to improve efficiency. While ensuring the stable operation of existing systems, we launched
more than 15 new system workflows and optimized over 600 processes in 2025, significantly enhancing
project management efficiency.
At Quectel, we regard “innovation” as one of our core corporate values and consistently drive innovation centered
on product needs to enhance core competitiveness and tap into the full potential of industry innovation. We place Project Evaluation
strong emphasis on building R&D platforms, protecting intellectual property, and promoting innovation incentives
and technical exchanges. These efforts enhance the innovation capabilities of our research teams and accelerate
• Collect comprehensive customer product information, including software func-
the iteration, upgrading, and commercialization of R&D achievements.
tions, hardware specifications, development plans, and product requirements;
• Evaluate whether our R&D capabilities meet customer project needs;
R&D Platforms Development • Complete and issue the Requirements List and Product Design Definition.
Certified High-Tech Enterprise; Enterprise Technology Center
Hefei R&D
Project Initiation
Intellectual Property Advantage Enterprise; CNAS-accredited Laboratory Center's
ISO17025/CNAS
• Conduct sequential design and review of hardware, structural components, PCB
Laboratory
Shanghai Innovative Enterprise Headquarters; Shanghai Patent Demon- Certification layout, and antennas;
stration Enterprise • Perform systematic R&D risk analysis and produce the “Product Development
Risk Assessment Form” and the “Product Design Analysis Report”.
Strategy R&D Design and Testing
We take technological innovation as the core engine and a globally compliant operating framework as the foun- • Advance development in line with customer requirements, addressing addition-
dation, consistently aiming to “provide comprehensive IoT solutions to customers.” Guided by our R&D strategy al needs related to software, hardware, production, and certification;
of “leveraging global R&D capabilities to build a smarter earth,” we have established technical teams across key • Conduct integrated debugging, including software/hardware debugging, field
regions to build a globally integrated R&D and service network. We adopt a dual R&D model of “customized + for- testing, and certification support;
ward-looking” development to accurately address the diverse needs of global customers and unlock industry • Support customers in complete system testing, covering OTA, high/low tempera-
innovation potential. In 2025, we actively captured the opportunities arising from the convergence of AI large ture, explosion-proof, and other test scenarios;
models, 5G, and IoT. We advanced diversified module development, deepened AI large model solutions, integrated • Issue Stage Test Reports corresponding to each testing phase.
the strengths of “modules + antennas,” and enhanced capabilities in industrial intelligent automation and scenar-
io-based customization, thereby maintaining technological competitiveness and sustainable risk resistance. Mass Production and Maintenance
Impact, Risk, and Opportunity Manage- • Track the full mass production process and follow up on after-sales issues with
systematic review and summarization;
ment • Provide module EOL technical support and assist customers with cost-down ma-
terial substitutions;
R&D Process Management • Respond to new customer software requirements and conduct routine software
iteration and maintenance;
• Generate analytical conclusions for various issues and issue Problem Analysis
We have established and implemented internal policies, including the R&D Innovation Management System, the
Reports (8D Reports).
Project Development Management Procedure, the Complete Product Development Process, and the Key Cus-
tomer Project Development Management Specification, to standardize and support the initiation, execution, and
feasibility of innovative projects, as well as research into critical and complex technologies. In 2025, based on Design and Development for Key Customer Products
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R&D Team Development
Innovation is the core engine driving sustainable corporate growth and building core compet- Case Innovation Incubation Workshop - Unleashing Creative Potential
itiveness. Quectel has remained deeply committed to technological R&D, leveraging a highly
qualified and advanced technical talent pool to underpin our innovation-driven development.
In 2025, we launched an internal “Innovation Incubation Workshop”
We adopt a dual talent strategy of internal development and external recruitment, building a
program. A total of 109 ideas were submitted, with over 30 ideas eval-
talent pipeline aligned with our long-term innovation objectives and providing strong human
uated across 5 competition rounds. One project entered the incuba-
capital support for technological breakthroughs and product iteration.
tion stage, and two high-potential projects continued to be tracked.
Through a phased approach of “initial engagement activation → prob-
lem adjustment and system refinement → new system-driven recov-
R&D Talent Development R&D Innovation Promotion
ery,” we achieved steady growth in idea generation and established a
solid participation foundation for future incubation initiatives.
Optimize Recruitment Model: Establish Sound Institutional Safe-
We continuously refine our recruit- guards:
ment and talent acquisition system
in alignment with our development
?We have established the Manage-
ment Measures for Internal Innovation
Industry-Academia-Research Collaboration
strategy, product positioning, and Incentives, including the creation of We have deepened collaboration across industry, academia, and research institutions by working closely with
global footprint. By accurately assess- the “Innovation Bonus Pool.” Annual universities, research organizations, and third-party platforms. We have jointly established internship and training
ing R&D needs, we attract high-quality innovation awards are issued to bases with multiple universities to cultivate market-oriented professional talent. In addition, we carry out compre-
industry talent to ensure the orderly recognize outstanding initiatives in hensive cooperation in areas such as project R&D and market expansion, integrating resources and leveraging
advancement of technology projects technological innovation, invention complementary advantages to jointly promote industrial innovation and upgrading.
and strengthen our innovation capa- patents, process improvements, and
bilities. workflow optimization, providing both
institutional and financial support for
Improve the Training Mechanism: employee innovation. We also regularly Case School–Enterprise Collaboration between Quectel Guilin and Guilin University of
We focus on improving team capabili- host “Innovation Arena” competitions
Electronic Technology
ties by establishing a comprehensive to encourage cross-department
professional training system, including collaboration in exploring new tech- We have actively strengthened collaboration with universities through joint training and technical
specialized R&D training programs and nologies and models and identifying exchange programs, cultivating high-quality technical talent and injecting new momentum into our
customized courses. We have built high-potential projects. innovation efforts. In 2025, we invited faculty from Guilin University of Electronic Technology to deliver
integrated online and offline learning 12 training sessions, reaching approximately 560 participants, with an average course satisfaction
platforms, supported by internal train- Innovation Award Selection: score of 95.81.
er development, expert-led sessions, In 2025, we received 103 innovation
technical salons, and employee partic- proposals from various departments
ipation in external technical training, at home and abroad; after a rigorous IPR Management
professional conferences, seminars, review, 47 projects stood out, covering
and exhibitions. These initiatives have multiple core areas such as technolo- At Quectel, we value the development of intellectual property (IP) protection and strictly comply with relevant laws
strengthened our technical expertise gy R&D, production processes, testing and regulations both domestically and internationally, continuously improving our IP management system. In 2025,
and driven continuous capability en- and validation, management optimiza- we revised and implemented the Patent Application Management System and the Trademark and Copyright Man-
hancement. In 2025, the Quectel Acad- tion, and product innovation. agement Measures, further refining processes related to IP application, authorization, incentives, and protection.
emy organized and recorded over Our IP management practices for the R&D and sales of wireless communication modules have obtained the GB/T
internal sharing. been recognized as an “Intellectual Property Advantage Enterprise” and a “Key Intellectual Property Protection Unit
in Songjiang District,” providing strong support for our patent protection framework.
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IP Strategy
Case Deep Participation in International Standard Development, Leading Innova-
tion in Vertical Industries
Quectel is a member of the 3rd Generation Partnership Project (3GPP), a global cellular mobile
We adopt a defensive strategy to mitigate infringement
communication standardization organization, and the China Communications Standards Associ-
risks while implementing an offensive strategy through
ation (CCSA), actively participating in discussions on communication standards and closely track-
proactive patent application and deployment to build our IPR Com-
ing the technological development in the industry.
technological barriers. Meanwhile, we focus on marketing, pliance
Management From February to November 2025, our IP Department sent representatives to participate in a se-
technological project declarations, and new product de-
System Certi- ries of 3GPP global working group meetings held across Europe, the Americas, and Asia, submit-
velopment. We have formulated and implemented a patent fication ting more than ten technical proposals. These proposals contributed to incorporating our tech-
application strategy to maximize IPR value, enhance market
nical solutions into the 5G-Advanced (5G-A) standard framework and expanding their application
competitiveness, and improve brand influence.
into multiple vertical industries, including new energy vehicles and smart agriculture.
R&D Innovation Achievements
We have achieved fruitful R&D outcomes in multiple fields. We continuously lead in the integration of 5G
IPR Risk Prevention and Talent Development
and AI, launching several high-performance benchmark products, and creating cloud-side and edge-
side AI large model solutions under the Quectel AI framework. In the field of high-precision positioning,
we have further enriched product applications by introducing high-precision positioning modules
• We have established a digital IP management platform, enabling full lifecycle, tailored for scenarios such as precision agriculture and surveying and mapping. Additionally, we have
Digital IP Management process-driven management from application and acceptance to authorization deepened R&D efforts in automotive-grade modules, hardware-software integration, and antenna tech-
and expiration. nologies. These innovations have been widely applied across industries including telecommunications,
automotive, industrial manufacturing, surveying, logistics, and healthcare.
• We provide targeted patent search services and issue risk assessment reports, In 2025, we developed 2,008 new products, a significant increase compared to
with support from professional law firms in North America and Europe. the previous year.
Patent Analysis and IP • In patent infringement litigation, we conduct in-depth technical analysis of the
Protection patents involved, providing strong non-infringement defense evidence for both
Major R&D Innovation Achievements in 2025
ourselves and our customers, effectively safeguarding rights and interests, and
avoiding significant economic losses.
Advancing the “5G + AI” Experience for FWA
• To encourage employees to convert their inventions and creations at work into
Patent Incentive Mecha- patents, we have formulated and implemented the Patent Reward Measures, dis- We launched the RG620UA-EU 5G module based on the UNISOC V20 chipset
nism tributing special bonuses quarterly. In 2025, our total patent incentives amount- platform, delivering an integrated “5G + AI” solution for next-generation
ed to RMB 648,000. CPE applications. This module delivers excellent performance in terms
of transmission performance, computing power, and key R16 features—
achieving a maximum downlink rate of 4.67Gbps and an uplink rate of
• We regularly engage external experts to deliver IP training programs covering it injects new vitality into the overall performance, making it suitable for
IP Training Programs patent application, patent drafting, and software copyright documentation, con- widespread deployment in mobile scenarios such as homes, small and
tinuously enhancing our team’s capabilities in IP creation and protection. medium-sized enterprise (SME) offices, construction sites, exhibitions,
and emergency command scenarios.
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Indicators and Targets
Upgraded LTE Modules Enabling “Always-On, Everywhere” Connectivity In 2025, we achieved key R&D targets, including continuously strengthening our innovation ca-
pabilities, increasing the number of patent applications and grants, and enhancing protection
of core technologies. The number of R&D personnel increased by 45.84% compared to last year,
Driven by technological breakthroughs, we have completed major up- and the training coverage rate has also risen year-on-year. We obtained 197 newly granted pat-
grades to several core LTE modules. By integrating Direct-to-Cell (D2C) ents during the year, effectively safeguarding our core technologies.
satellite communication technology, these modules now support dual
connectivity via terrestrial cellular networks and satellite networks. This Key Indicators for R&D Investment
enables customers to avoid additional satellite hardware costs, shorten
time-to-market, and significantly enhance product competitiveness. Indicator 2024 2025
Number of R&D Employees 4,184 6,102
Proportion of R&D Employees in Total
Workforce
GNSS LG290P Module: Balancing Low Power Consumption and High Precision
R&D Investment (RMB billion) 1.669 1.951
R&D Investment as a Percentage of
Equipped with high-precision GNSS navigation modules and a centime- Revenue
ter-level LG290P GNSS positioning module, our autonomous lawn-mowing Training Hours for R&D Personnel 219,500 200,161
robots leverage Real-Time Kinematic (RTK) technology to achieve position-
ing accuracy of ±1 cm in open environments. Combined with advanced Proportion of R&D Staff Trained 91.5% 93%
path planning, task scheduling, and execution control algorithms, these
systems effectively avoid redundant operations and deliver 15%–20%
additional energy savings compared to conventional smart devices, sig-
Key Indicators for IP Protection
nificantly reducing unnecessary energy consumption.
Indicator 2024 2025
Valid Patents During the Reporting Period 568 778
Launch of Robrain AI Robotics Solution V2.0
Invention Patents Applied to Main Business 199 308
Patents under Application and Acceptance 440 659
We officially released the Robrain AI Robotics Solution V2.0, successful-
ly deploying it in humanoid robotics applications. This solution deeply Copyrights 303 327
integrates multimodal AI large models with the AI computing platform
QSM882GP, enabling comprehensive processing of visual, voice, and tex- Trademarks 363 327
tual data for scene understanding and precise motion control. It also
incorporates voiceprint recognition technology to enhance interaction Granted Design Patents 7 6
Num-
security and personalization. This upgrade marks a shift from functional
ber of
to humanized human-machine interaction, demonstrating Quectel’s con- Granted Utility Model Patents 51 81
Granted
tinued innovation in AI and robotics.
Patents
Granted Invention Patents 88 110
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Digital and Intelligent Development
Governance
In advancing digital and intelligent development, we have established a governance mechanism characterized by dedicated leadership and cross-functional collaboration, ensuring standardized, end-to-end management of
digital and intelligent products from development and implementation to certification and commercialization. Our R&D team closely aligns with market demands, integrating cutting-edge technologies to innovate and drive core
product development. The project management function oversees timelines, coordinates resources, and controls risks to ensure orderly implementation. The Intelligent Manufacturing Center enhances systems and standard-
izes processes to translate R&D outcomes into high-quality products. The certification team advances product certification to meet diverse international market access requirements, while the sales team leverages market
insights to conduct targeted marketing and promote product deployment in smart application scenarios. Through clear accountability and efficient coordination, all departments jointly strengthen the governance foundation
for high-quality digital and intelligent development.
Strategy
Guided by our core mission of “Building a Smarter Earth,” we have deeply embedded digital and intelligent development into our overall corporate strategy. We actively captured opportunities in the digital and intelligent era while
effectively managing potential industry risks. Leveraging our integrated capabilities, we have expanded into diverse smart application scenarios and enhanced our ability to sense and respond rapidly to evolving market de-
mands at a strategic level. By empowering integrated IoT solutions with digital and intelligent technologies, we continue to drive innovation breakthroughs and maintain steady progress amid the transformation toward a more
digital and intelligent future.
Impact, Risk, and Opportunity Management
Digital and Intelligent Manufacturing and Management
Intelligent manufacturing and management play an irreplaceable role in the development of smart factories. We achieve refined control of production processes by building a systematic, IT-based management platform. While
continuously improving product quality, we significantly enhance our production efficiency and competitiveness.
Intelligent Production and Full-scale Qual- Smart Warehousing and Equipment Digital Systems and Operations Enterprise-wide Digital Efficiency En-
ity Control Upgrades hancement
• Integrate processes such as SMT and • Introduce facilities such as automated • Establish a digital production system • In 2025, Quectel Changzhou fully imple-
automated assembly to optimize the guided vehicles (AGV) and automated centered around SAB, with WMS, QMS, and mented an integrated office platform,
entire workflow from PCB feeding to high-bay warehouses (with future plans MES working collaboratively to manage enabling efficient cross-departmental
packaging; for cross-floor AGV transportation solu- materials, quality, and production pro- and cross-regional collaboration and
• Implement 100% multi-dimensional tions); cesses end-to-end; intelligent project management;
inspection covering welding, perfor- • Integrate WMS and MES to achieve “ma- • For new EMS projects, we develop • Ensure intelligent management across
mance, and other indicators to ensure terial-to-person” supply; dedicated MES systems to enable full plant security and parking systems;
products meet stringent standards. • Penang Quectel has also implemented product traceability. We also leverage • Make systematic investments in new
WMS-based digital warehousing; industrial big data platforms to analyze business segments to adapt to the up-
• Over 90% of our factories have adopted production data, optimize capacity allo- grading needs of business models.
collaborative robots, supported by auto- cation, and trace root causes of defects.
mation equipment and BPM systems to
improve operational efficiency.
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Smart Product Design and Applications
At Quectel, we are committed to advancing the design of smart products that are adaptable to more application scenarios. Our products cover a wide range of fields such as smart transportation, energy, agriculture, furniture,
education and entertainment, and assist driving, providing customized intelligent solutions for various industries to enhance product accessibility. Based on market demand, we launched integrated AI large model solutions
combining modules, large models, AI algorithms, and platforms in 2025, enhancing perception, decision-making, and interaction capabilities across terminal applications, contributing to the development of new quality produc-
tive forces, and thus comprehensively serving people's aspirations for a better life.
Achievements in Digital and Intelligent Development
Industrial Intelligence Intelligent Transportation Smart Agriculture Smart Healthcare Smart Home Smart Energy
Our industrial intelli- We launched DynaBlue Blue- Our Verditex brand launched We released a 5G- AxAI termi- We introduced the VA500- We provided customized
gence brand, Provecta tooth protocol stack, LXC FMA series agricultural ma- nal suite, including portable GLAI audio module (featuring solutions such as dual-form
AI, introduced a range of virtual cockpit software, and chinery navigation, FBS base AI diagnostic devices. We localized AI algorithms for 5G antennas and dedicated
AI-enabled automation QuecOpen cross-platform TCU station, FSC200 intelligent also supported Deyee in environmental sensing and LoRa antennas for gas me-
equipment and solu- solutions. We also released simulator cockpit, FPS100 launching the world’s first offline voice control) and ters, addressing connectivity
tions, including AI visual the automotive-grade 5G precision spraying and oth- edge-side large-model AI the ultra-compact FGM842D challenges in metal-shielded
inspection systems, SOP R18 module AR588MA and the er system solutions, and re- embodied physiotherapy Wi-Fi 4 & BLE 5.2 dual-mode and complex environments.
behavior recognition, Quectel Pi H1 development leased the centimeter-level robot, integrating 8-DOF module, enabling proactive We supported energy storage
AI-enabled sorting and board, supporting advanced high-precision GNSS module 3D vision navigation with interaction in appliances system inspection with Ro-
screening machines, driver assistance, in-vehicle LG680P to help digital agri- traditional Chinese med- such as air conditioners brain AI robotics solutions and
PIN inspection systems, intelligent interaction, and re- cultural management and icine-based therapy for and range hoods. We also high-computing-power mod-
automated module pro- al-time traffic management precision operation in all autonomous and precise launched the RD6000CC mil- ules, while ensuring reliable
gramming equipment, decision-making, further scenarios. services. limeter-wave radar for fall global connectivity through
and flexible manufactur- strengthening our “seven detection, enhancing safety “IoT SIM + eSIM” solutions.
ing solutions. major in-vehicle technology in elderly care scenarios.
ecosystems.”
Acceleronix — An Efficient, Economical, and Secure Smart IoT Platform for
Case AI Algorithms and Solutions Empowering Diverse Smart Scenarios Case
Home Gas and Energy Storage
In 2025, Quectel's Value Added Service (VAS) product line collaborated with global teams to promote Quectel's Acceleronix dual-platform solution, based on its proprietary IoT technology, provides a
green intelligent solutions in various regions including China, Europe, America, and Asia-Pacific, safe and efficient closed-loop solution for energy management.
based on end-side AI large models, Agentic IoT architecture, and AI audio-video technology. Lever- • Upon detection of the gas leaks, the system automatically triggers audible and visual alarms,
aging low-power modules integrated with lightweight AI models, we enabled on-device inference pushes alert notifications, and shuts off gas valves. Users can remotely control ventilation devic-
and voice interaction, reducing reliance on cloud computing and minimizing network-related en- es via mobile applications. Combined with Quectel modules certified under ATEX explosion-proof
ergy consumption. The solutions have covered scenarios such as intelligent transportation, smart standards, the solution supports safe and reliable large-scale deployment.
retail, smart homes, and Robrain robots, helping enterprises improve efficiency, reduce energy • The energy management system provides supports via WEB/APP, featuring OTA upgrades and
consumption, and provide inclusive intelligent services for children, the elderly, and people with anomaly warning functions. Paired with a proprietary Wi-Fi data acquisition device and stable RS-
disabilities. In terms of social impact, the solutions enhance independent living capabilities for 485 communication, it enables data transmission, command delivery, and remote upgrades, form-
vulnerable groups through voice interaction, enable personalized educational companionship for ing a bidirectional control loop among loT platform, devices, and users.
children, and reduce food waste and packaging consumption through intelligent recognition tech-
nologies, driving the IoT ecosystem toward energy efficiency, inclusiveness, and sustainability.
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Case Intelligent Connected (V2X) Technology: Enhancing Traffic Efficiency and Reducing Carbon Emissions
In 2025, Quectel's vehicle-mounted V2X communication products and solutions achieved real-time data ex-
change among vehicles, roads, and the cloud. Through green wave speed guidance, the system provides
optimal speed recommendations based on traffic signal status, helping vehicles pass through intersections
smoothly. These products and solutions also support coordinated platooning for commercial vehicle fleets, lev-
eraging aerodynamic drafting effects to reduce air resistance for following vehicles. In terms of environmental
value, they reduce sudden braking and idling while enabling platoon driving, lowering energy consumption per
vehicle by approximately 10%–20%, with fuel savings of up to 15% for vehicles within a fleet, directly contrib-
uting to energy conservation and emissions reduction. Socially, they improve traffic efficiency and road safety
while alleviating urban congestion through smoother driving experiences.
Case Building the Next-Generation Emotion-Aware AI Companion
Quectel's “4G AI Companion Solution,” centered on a “module + AI large model” architecture, empowers cultural and consumer
products with child-centric intelligence across three dimensions:
• All-Scenario Stable Connectivity: Equipped with Quectel's low-power 4G module (EC800M-CN), and optimized for the frequent
mobility of children, the system ensures continuous and stable connectivity in various indoor and outdoor scenarios, pre-
venting call interruptions caused by network switching.
• Emotion-Aware Interaction for Children: Integrated with cloud-based child-focused AI large models and voice emotion
recognition algorithms, the system detects emotional changes in children’s speech patterns and adjusts storytelling tone,
plays soothing music, or provides verbal encouragement, enabling human-like emotional interaction.
• Safe and Controlled Content Ecosystem: Based on Quectel's IoT platform, it ensures secure management of content up-
dates and interactions throughout the process, ensuring that children receive appropriate content and intelligent interac-
tion experiences in a regulated environment.
Indicators and Targets
At Quectel, we consistently incorporate digital and intelligent development into our core strategic objectives. In 2025, we achieved key breakthroughs in edge-side large model technologies, enabling the large-scale deployment
of AI solutions across multiple industries. We also completed capacity planning for expansion projects in AI computing power, automotive modules, and 5G modules. Looking ahead, we will focus on deepening the integration of
smart and green application scenarios to unlock production capacity, while continuously enhancing our digital operations capabilities and intelligent product design expertise.
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Adhering to Technological Ethics We have established an information security governance structure comprising management-level
oversight (Information Technology Department), functional departments, and execution units (Infor-
mation Security Team). We conduct regular information security audits and ensure closed-loop reme-
In an era of rapid technological advancement, the deployment of AI large models, IoT, and AI model training diation of identified issues, continuously improving our information security management system in
platforms has made the governance of AI interaction, large-model applications, and technology ethics in- line with technological advancements and business needs. In 2025, we revised policies including the
creasingly critical. Relevant control measures have been embedded throughout the entire lifecycle of tech- Meeting Security Management Policy and the Information Security Inspection Policy.
nology development, project implementation, and application. We have obtained certifications including ISO/IEC 27001 Information Security Management System
(covering communication modules, IoT platform R&D and operation services, etc.), ISO 27701 Privacy
Information Management System, ISO 21434 Road Vehicles Cybersecurity Engineering and TISAX Level 2
During the reporting period, we had no violations against ethics in science and technology. assessment for automotive industry information security assessment.
Daily Operations
AI Governance and Rational Use Secure and Continu-
ous Operations
Continuous Improve-
• We deploy AI-enabled search capabilities on loT platforms and utilize third-party systems em-
ment
bedded with AI governance and technology ethics requirements;
Standardized Ap-
• In developing large models, we incorporate AI tools while establishing internal policies govern- Equipment Security
plication of AI Tools ing AI use, including clear requirements for data leakage prevention and standardized proce-
dures across the full lifecycle of technology use.
Application Security
System Proteotion
• From project initiation to deployment, we conduct comprehensive assessments to ensure Data Security
Ex-ante Assess-
alignment with ethical standards and societal values, and complete regulatory filings for inter- Technical Framework
ment net information service algorithms where applicable. for Information Security
Governance Virtual Resource Pool
loT Platform Environ-
• During the development phase, we uphold principles of fairness and transparency, leverage ment Security
multi-source data collection to reduce algorithmic bias, and apply explainable AI technologies to Virtual Host Security
Phased Control ensure ethical compliance.
• During the application phase, we conduct system security and reliability testing, with continu-
ous optimization based on evaluation results. Security Governance Network Border
Border Security
Technology
• We prioritize data privacy protection by implementing encryption measures across data col-
End-to-End Privacy
lection and usage processes, strictly adhering to the data minimization principle to comprehen- Communication Communication
Protection sively safeguard user privacy. Security Networks
Data Security and Privacy Pro- R&D Security
tection Industrial Control
Security
Governance
Unified Security
Authentication
Data Security System Development Physical Security
Environment
At Quectel, we comply with applicable laws and regulations and have established a comprehensive set of
information security management policies covering areas such as cybersecurity, data center security, Technical Framework for Information Security Governance
personal information protection, and hardware security. These policies ensure robust protection of data
related to our operations, customers, suppliers, and employees.
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Strategy
Network Management Regulations As one of the most critical production factors , data security has been elevated to a position of paramount im-
AD Account Management System
portance. We actively respond to the Digital China Construction Overall Layout Plan and continuously enhance our
IT Resource and System Man- IT Device Management System
agement Server Management System Standards data security management systems and measures to ensure the delivery of secure, efficient, and sustainable
Terminal Security Usage Management products and services to our customers.
System
Coverage of Business Areas with Data Security Certifications 90 %
Supervision, Assessment and Information Security Penalty Manage-
Penalties ment System Sensitive Data Encryption Coverage 100 %
During the reporting period, we had not faced any penalties from relevant authorities due to violations of infor-
Backup Management System mation security and privacy protection laws and regulations.
Information Security Data Security Process Man- Personal Information Security Specifica-
and Privacy Protec- agement tions
tion Management
System
Data Transmission Operation Guideline
Impact, Risk, and Opportunity Manage-
System Emergency Recovery Plan
ment
Emergency Response Data Breach Emergency Response and
Notification Process Data Security Protection Measures
We implement comprehensive information security management, including precise risk identification, regular
data backup exercises, enhanced network governance, the use of professional tools for vulnerability detection
Employee Privacy Statement
Privacy Information Applicability State- and remediation, and ongoing employee training, thereby jointly building a robust information security defense
ment system.
Privacy Management and
Information Security and Privacy Infor-
Statement
mation Policy
Information Security and Privacy Infor- Data Security Risk Management
mation Management Manual
•Normalized Data and Asset Governance
Classify domestic and international data, and establish allowlists and blocklists for man-
agement by category; conduct external asset security inspections and scans every two
months while promoting overall management, simultaneously collecting and scanning
risk exposure using open-source POC scanning tools, with results forwarded to business
departments for rectification.
•Closed-loop Vulnerability Management
Information Respond to vulnerability detection requirements and conduct re-testing after comple-
Security Review tion of remediation to verify effectiveness; deploy jointly procured commercial vulnerabil-
ity scanning platforms across domestic and overseas operations to enable synchronized
and Vulnerability scanning across locations, improving efficiency in identifying and addressing new vul-
Management nerabilities; and implement proactive threat detection, centralized log management, and
in-depth data analysis, establishing a vulnerability database and ensuring full-process
tracking and remediation.
•Security Access Control for New Systems
Complete security testing and obtain approval through formal testing work orders
before the new system goes live, conduct security scanning on the test environment
address, categorize remediation based on vulnerability levels, and only initiate the launch
ISO 27001 Certification ISO 27701 Certification ISO SAE21434 Certification TISAX Certification
process after passing acceptance.
Employee Privacy All new employees sign the Quectel Employee Privacy Statement upon onboarding, rein-
Information Security and Privacy Protection Management System Protection forcing awareness of privacy protection obligations.
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Protection of Customer Privacy
Data Security Protection Management
At Quectel, we closely follow global data security regulatory requirements, comply with the ISO 21434 in-
ternational standard and the national standard GB/T 32960 operational specifications, and continuously
monitor updates to EU data protection regulations. We have also continued to improve our customer
• Business Impact Analysis (BIA): Conduct a specialized analysis of risks and occurrence
probabilities for 5 core business systems, including the network storage system, work privacy complaint handling mechanisms. We ensure that when privacy rights and interests are violated,
Data Breach order system, and developer center customers can receive timely and effective solutions. Additionally, privacy protection measures are fully
.• Develop a business continuity drill plan based on the analysis results and organize integrated into the service lifecycle, providing global customers with secure, reliable and trustworthy ser-
Emergency
specialized emergency drills.
Response vice experiences.
• Ensure that in the event of a major disaster or business interruption, the IT infrastruc-
ture, business systems, and service personnel for critical business operations can re-
sume operations within the specified time frame while ensuring data integrity.
In 2025, no customer privacy breach incidents occurred.
Transmission Management
• Employ various methods such as shared drives, network storage, FTP, SharePoint, and Customer Privacy Protection Measures
Data Trans- OneDrive for cross-department data transmission to meet the transmission needs of
mission different departments and business scenarios.
• Conduct PI assessments for foreign colleagues before cross-border transmission, Confidentiality Agreements
and Backup
strictly controlling the cross-border flow of data to ensure the security of sensitive
Manage- data during network transmission and to prevent data leakage and tampering.
ment Backup Management We sign confidentiality agreements with employees and business partners to clearly define obligations
• Implement full backup management for various types of transmitted data to proac- regarding the protection of confidential information.
tively prevent information security incidents, ensuring data security and recoverability.
Decentralized Customer Information Management
Organize data compliance and information security training sessions, seminars, and We implement role-based access control over customer information, ensuring that only authorized per-
other activities, covering topics such as the dissemination of information security poli- sonnel can access and process such data, thereby preventing unauthorized access and data leakage.
cies and regulations, office and daily security norms, security rule summaries, and inter-
Information
actions. These activities aim to raise employees’ awareness and response capabilities
Security regarding information security. DPIA Privacy Assessment
and Privacy
Protection Information Security Training Performance in 2025: We conduct Data Protection Impact Assessments (DPIAs) to systematically identify and evaluate the pri-
• Mandatory information security training for new employees: 13 sessions, covering
Training vacy impacts of data processing activities and implement targeted mitigation measures.
• Company-wide information security training assessments: 5 sessions; participants:
Threat analysis is conducted during the product design phase, and risk transfer or elimination is im-
plemented. The Hardware Security Module (HSM) technology is used throughout the process to ensure
security.
Case Recognition in Cybersecurity Attack and Defense Drill End-to-End Customer Data Governance
Quectel participated as the blue team in the 2025 Shanghai Industrial and Information Tech- Transmission Security: Prohibit printing customer privacy information and monitor sensitive information
nology Cybersecurity Attack and Defense Drill (“Gongfu Liwang”). During the event, we actively through log scanning; data transmission is secured using TLS encryption with multiple security options.
conducted network attack and defense drills to strengthen our system security defense ca- Storage Security: Data protection is ensured through built-in module security frameworks and technical
pabilities, successfully completed the drill tasks, contributed to the smooth execution of the solutions.
event, and received recognition from the relevant authorities in Shanghai. Communication Security: All components are digitally signed to prevent tampering, supported by stand-
ard security measures including WPA encryption, Threat Analysis and Risk Assessment (TARA), and HSM-
based encryption to mitigate and eliminate risks.
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Indicators and Targets Green Procurement Environ-
mental Protection Team
Data Security Management Targets and Progress
Progress in 2025
Indicator Target
Q1 Q2 Q3 Q4 Appointed by Senior
Team Leader
Vice President
Information Security Incidents 0 0 0 0 0
Data Leaks 0 0 0 0 0
Long Business Interruptions
(30+ minutes) Technical
Sales Depart- Quality Depart- Resources/ Production/
Department
ment ment Purchasing Engineering
New Vulnerability Fix Rate 100% 95% 95% 92% 98% (Hardware/Soft-
Department Department
ware)
Information Security Training 100%
(Times) Completed
Supply Chain Security Mem-
bers
Responsibilities
Governance Manage-
• The team is led by an appointee of the Senior Vice President, who serves as the sole authorized
signatory for external environmental-protection agreements.
• The leader organizes and coordinates the green procurement process to ensure smooth oper-
ment
Procurement Management Structure ation, eliminate environmental risks in our products, and guarantee customer satisfaction.
• Sales Department
To enhance standardized procurement practices and ensure that procurement activities are conducted efficiently,
Study materials, identify customer requirements, provide internal feedback, and collaborate with
transparently, and in compliance with applicable regulations, we have established and implemented various pro- the Quality Department to provide necessary data.
curement management policies, including the Procurement Control Procedure, the Production Material Procurement • Quality Department
Tender Management Regulations, the Procurement Department Operating Standards, and the Anti-Corruption Stand- Update the hazardous substance management methods in a timely manner, work with R&D, sales,
and resource departments to evaluate and record customer environmental requirements, review
ards on Resource Procurement. These policies have continuously strengthened the standardization and formaliza-
and manage the environmental qualifications of suppliers’ materials, and assess the environmen-
tion of our procurement operations. We have established the Green Procurement Environmental Protection Team, tal status of our projects.
clarified management responsibilities, comprehensively identified supply chain procurement risks, strictly controlled •Technical Department (Hardware/Software)
the use of harmful substances, dynamically tracked updates to regulations and policies, and promoted compliance Lead new-product development, and ensure that product development complies with customer
regulatory requirements.
operations and sustainability for the Company and its supply chain partners. Execu-
• Resource/Procurement Department
To strengthen the standardized and sustainable supply chain management, we have developed systematic docu- tion Source suppliers that meet environmental protection requirements and collect testing reports
ments such as the Supplier Development and Management Standards and the Supplier Management Manual, improv- for materials such as RoHS, and halogen-free reports. Conduct environmental investigations on
ing the supplier admission, daily management, and exit mechanisms. Leveraging our procurement system platform, existing suppliers and create a list of qualified green suppliers
.• Production/Engineering Department
we implement end-to-end, refined management of production raw materials, significantly improving supply chain
① Monitor incoming materials for environmental compliance, review reports and packaging
efficiency and quality. proofs; request third-party testing reports such as RoHS, REACH, and halogen-free compliance
Procurement personnel performance is directly tied to procurement quality. We established the Procurement Engi- reports when necessary. ② Inspect eco-friendly materials, immediately isolate the material and
neer Performance Evaluation Form, which defines key responsibilities and performance targets during the evaluation stop the relevant production line if there is no eco-label, and promptly report to superiors. ③
Monitor whether the shipments are eco-friendly, ensuring that the shipment labels and packag-
period, covering dimensions such as on-time delivery rate, cross-departmental collaboration, quality coordination,
ing meet RoHS certification. ④ Verify that production auxiliary materials and recycled materials
and system alignment. are environmentally friendly.
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Sustainable Procurement Management
At Quectel, we place strong emphasis on ESG management across the supply chain, particularly by incorporating ESG performance as a core evaluation criterion during supplier admission. The Supplier Environmental and Social
Responsibility Scorecard serves as a key component of the overall Supplier Evaluation Form, covering dimensions such as labor rights and interests, occupational safety, employee welfare, working hours, and environmental man-
agement (annual monitoring). These indicators have been integrated into the comprehensive supplier scoring system. Specifically, suppliers are required to achieve a minimum score of 80% on each ESG-related indicator, includ-
ing Environmental Control and Environmental and Social Responsibility, with the ESG component accounting for 10% of the overall supplier evaluation.
In addition, we formalize ESG expectations by signing agreements including the Supplier CSR Agreement and the Supplier Environmental Protection Agreement, thereby regulating and standardizing supplier conduct across multi-
ple dimensions, including social responsibility, environmental protection, and business ethics. These measures lay a solid foundation for sustainable supply chain management.
ESG Requirements for Suppliers
Business Ethics Suppliers must strictly comply with all laws and regulations related to bribery, corruption, and prohibited business practices.
Governance
Corporate Over- Suppliers must comply with our code of conduct, provide relevant documents and grant access as required, and respond promptly to reasonable inquiries from our representatives
sight regarding its implementation.
Forced Labor The employment of any type of forced or involuntary labor is prohibited.
Prohibition of
The employment of child labor is prohibited. Apprenticeship programs are supported, provided these programs comply with all applicable laws and regulations for such programs.
Child Labor
Remuneration
Suppliers must comply with all applicable salary and working hour laws and provide legally required benefits.
and Benefits
Social
Suppliers must adhere to local statutory working hours and compensate for overtime. Weekly working hours (including overtime) must not exceed 60 hours (in exceptional cases, em-
Working Hours
ployee consent is required; lower standards apply in regions with lower working hour limits), and employees must be guaranteed at least one day off per week.
Non-Discrimina- Discrimination based on race, religion, gender, or any other factor is prohibited during recruitment. Fair treatment of all employees must be ensured. Employee rights shall be respected,
tion and Respect and any form of corporal punishment, threats of violence, or harassment is strictly forbidden, in order to maintain a safe and respectful working environment.
Health and Safety Suppliers must establish standards for occupational health and safety and implement corresponding management systems.
Environmental Suppliers must comply with all environmental laws and regulations, including chemical management, waste disposal, wastewater and waste gas control, and meet our additional envi-
Environment
Protection ronmental requirements by providing proof of non-hazardous material products.
Strategy
At Quectel, we continuously deepen collaboration with suppliers and value chain partners to build a robust and efficient coordination mechanism covering the entire process from raw material procurement to finished product
delivery. This ensures product supply stability, and the steady expansion of our business. In terms of industrial ecosystem development, we strengthen cooperation with operators and core suppliers, integrating advantageous
resources and jointly advancing technological innovation and application exploration, thereby fostering the development of a more competitive and innovation-driven industrial ecosystem. In supply chain management, we
focus on building a unified supply chain management system and information system, adhering to production-oriented procurement and optimized inventory management. Centered on flexible delivery requirements, we have
built digital procurement management systems and improved standardized procurement processes to ensure compliance and operational efficiency.
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Impact, Risk, and Opportunity Management Ensuring Supply Chain Security
We continuously strengthen supplier audit and management practices, optimize resource alloca-
Supplier Risk Management tion, and formulate the Annual Supplier Audit Plan. Through cross-departmental collaboration, we
conduct on-site supplier audits and performance evaluations. All relevant information is recorded
We continuously improve our supply chain risk prevention and control system by strengthening mechanisms for in real time on the supplier management platform to ensure transparency and traceability. Sup-
risk identification, assessment, and supervision, and by optimizing contingency and backup strategies. We conduct porting policies such as the Performance Evaluation for Production Suppliers, the Manufacturer
comprehensive quarterly reviews of the supplier list to assess risks and update risk ratings, enabling early identifi- Evaluation Form, and the Annual Manufacturer Assessment are implemented in parallel.
cation, early warning, and timely mitigation of potential risks.
Supplier Audits
• We implement a strict supplier admission mechanism, under which all new suppliers
are subject to comprehensive and prudent evaluation. In supply solution design, we
Admission require, where feasible, the inclusion of alternative material options to avoid depend- • We conduct comprehensive supplier evaluations through the Supplier Evaluation Form,
and Source ence on a single source. Meanwhile, we further strengthen contractual performance which covers multiple perspectives, including quality systems, R&D capabilities, quality
Control assurance through measures such as supply guarantee agreements and the collec- control, process management, warehousing and transportation, after-sales service,
tion of performance deposits.
safety management, and environmental protection. Suppliers with significant adverse
incidents or ranked at the bottom of evaluation results are decisively disqualified.
• In response to issues such as material defects and quality non-compliance, we pro-
actively assist suppliers in traceability and root cause analysis, and require them to
Dynamic implement corrective measures and submit a rectification report within the specified
Monitoring timeframe, continuously improving the supply chain's social responsibility system. In
• We have established a real-time monitoring and risk early warning mechanism, collab-
and Early 2025, all production-related suppliers identified with issues completed rectification.
orating to develop solutions within 24 hours of triggering.
Warning
Response
• High-risk suppliers are required to sign supply guarantee agreements and provide
performance deposits, with clear provisions for breach liabilities and accountability
Constraint tracing.
Mechanism • We promote the establishment of internal supplier risk assessment and escalation
and Account- Empowering Procurement Personnel
mechanisms, covering multiple dimensions such as safety and compliance, financial
ability risk, product safety, process stability, and supply risk, supported by corresponding
contingency plans. • We organize regular monthly and quarterly training sessions, inviting both
internal and external experts. Training topics include procurement data
analysis, raw material knowledge, negotiation skills, and customs opera-
tions, effectively enhancing the team’s professional capabilities.
Supply Re-
• We implement multi-sourcing strategies and establish contingency plans for critical • In 2025, we conducted 34 procurement-related training sessions, achiev-
silience and
material substitution to reduce over-reliance on single suppliers. ing a 100% participation rate in sustainable procurement training among
Ecosystem
• We manage slow-moving and obsolete inventory to improve resource utilization effi- procurement personnel.
Collabora-
tion ciency.
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Distributor Management
Strengthening Supplier Communication and Incentives
At Quectel, we have established a comprehensive system and access mechanism. Through the Dis-
tributor Management Policy and annual assessments, we have defined clear criteria for distributor
admission, exit, and violation response, ensuring transparent and compliant agency relationships.
• To reinforce partnerships with long-term suppliers, we offer preferential terms, includ- Leveraging digital systems, we have implemented tiered and role-based management of distributors,
ing concessions on service fees and pricing. The balance payment schedule is subject to encouraging them to actively expand into regional and emerging industry markets and achieve sales
extension based on the actual circumstances. targets. Distributors are also required to regularly register business opportunities in the system to
• We require core suppliers to sign the Long-term Supply Assurance Agreement and the ensure timely information alignment.
Long-term Cooperation Agreement, formally defining rights and obligations to enhance In supporting and empowering distributors, we provide sales tool support, such as product materials
overall supply chain resilience and reliability. and sample displays. We regularly conduct training on products, markets, and technology to enhance
• High-performing suppliers are recognized through formal letters of appreciation issued distributor capabilities. Based on project needs, we deploy sales or technical personnel to jointly visit
on behalf of the Company, strengthening mutual trust and collaboration. customers and provide on-site support, facilitating project execution.
Indicators and Targets
Quectel’s Supplier Management Performance in 2025
Enhancing Supply Chain Competitiveness through AEO Certification
Total Number of Suppliers 544
Number of Suppliers that Have Undergone Annual
Evaluations
We successfully obtained the Authorized Economic
Operator (AEO) Advanced Certification issued under
the framework advocated by the World Customs Supplier CSR Agreement Signing Rate 100%
Organization. This certification significantly improves
trade security and facilitation:
Supplier Environmental Protection Agreement Signing
• We benefit from priority customs clearance, reduc- 100%
Rate
ing cargo waiting times in import and export pro-
cesses. Number of Suppliers Certified by ISO 14001 Environ-
• The inspection rate is also reduced, lowering logis- 234
mental Management System
tics costs and detention risks.
• This has enhanced our market competitiveness and Number of Suppliers Certified by ISO 45001 Occupa-
brand influence, and provided strong support for en- tional Health and Safety Management System
suring the reliability and stability of the international
supply chain. AEO Certificate Proportion of Suppliers Signing the Sustainable Pro-
curement Charter/Supplier Code of Conduct
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Conflict Minerals Management
The Company incorporates conflict minerals control into its distributor and upstream supply chain management systems. We strictly comply with the Declaration of Conflict Minerals and
relevant international initiatives. We commit to ensuring that our products do not contain conflict minerals sourced from high-risk regions, such as the Democratic Republic of the Congo
(DRC). We have established a compliance safeguard at the source through origin investigations and assessments during the supplier admission process, disqualifying suppliers who cannot
provide valid certificates or whose material sources are unverified, thereby laying a sustainable foundation for the supply chain.
In ongoing supplier management, we continuously monitor suppliers’ conflict minerals management capabilities through on-site audits and other evaluation methods. We also require direct
suppliers to sign the Supplier REACH Declaration of Conformity, mandating strict compliance with environmental regulations such as RoHS and REACH. These measures systematically advance
hazardous substance control and material transparency, fostering a compliant and green supply chain ecosystem.
In 2025, we completed dedicated conflict minerals due diligence for all metal suppliers, confirming that their raw materials were not sourced from high-risk regions, with zero compliance Quectel’s Declaration of
risks identified. Conflict Minerals
Empowering Industry Development
Quectel is committed to advancing value integration and synergy across
all segments of the industry value chain. Through technology openness,
resource connectivity, and ecosystem co-development, we enable part-
Case Quectel Showcased at Multiple MWC Events Worldwide in 2025
ners to achieve complementary capabilities and accelerated innovation,
jointly fostering a healthy and sustainable AIoT ecosystem and enhancing
overall industry chain efficiency.
We actively participate in the formulation of standards and technical As one of the global leaders in the IoT industry, we participated in multiple editions of the Mo-
discussions in fields such as AI, 5G, and automotive communication, bile World Congress (MWC) in 2025, including exhibitions in Doha and Shanghai. On the opening
promoting the standardized development of the industrial chain. At the day of MWC Doha, we unveiled upgraded versions of our RG620T and RG660MK series 5G indus-
same time, by building an open empowerment system encompassing trial-grade modules, integrating 3Tx and L4S technologies. At MWC Shanghai, we showcased a
open-source hardware, algorithm platforms, and IoT software service wide array of innovations across 5G, AI, large models, and automotive technologies, covering
platforms, we provide partners with one-stop development support, applications such as large-model solutions, robotics, smart living, smart industry, and ad-
effectively lowering the barriers to innovation across the entire value vanced driver assistance. We also co-launched the Robrain AI Robot Solution with our custom-
chain. ers and collaborated with ecosystem partners to build a millimeter-wave radar ecosystem.
We have established an integrated talent cultivation system that con-
nects “campus and industry” through initiatives such as developer com-
petitions, technical communities, jointly developed university curricula,
and collaborative laboratories. We regularly organize technical salons,
hands-on workshops, and other activities with our partners to continu-
ously supply talent and innovative solutions to the industry, enhancing
the collaborative capabilities of the industrial chain.
Case Quectel Shined at WAIC 2025
Quectel's Industry Affiliations
In July 2025, the World Artificial Intelligence Conference (WAIC 2025) was held at the
Member of the Global Coalition on Telecommunications 3GPP
(3rd Generation Partnership Project Shanghai World Expo Center and Exhibition Hall. Quectel’s integrated AI commercial
service robot solution made its debut at WAIC, which is equipped with a collaborative
Member of the China Communications Standards Association (CCSA) architecture of device-side intelligence and a cloud-based large model , enabling
functions such as visual navigation and voice interaction.
Member of the Groupe Speciale Mobile Association (GSMA)
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Case Quectel’s Provecta AI Demonstrated AI-Powered Intelligent Manufacturing at CIIF 2025
In September 2025, the 2025 China International Industry Fair (CIIF), themed New Industrial Quality, Unlimited
Intelligent Manufacturing, grandly opened in Shanghai. Quectel, together with its industrial intelligence brand
Provecta AI, showcased a series of AI-enabled automation equipment and solutions, including AI visual inspec-
tion, SOP behavior recognition, AI-enabled sorting and screening machines, PIN inspection machines, module
automated programming equipment, and flexible manufacturing solutions.
During the concurrent 3rd Yangtze River Delta High-End Industry and Financial Services Summit, Provecta AI
participated in a roundtable discussion on Digital Empowerment of a New Industrial Ecosystem. Centered on
the theme Digital Twin Factories: AI-Driven Virtual-Real Integration, the discussion explored practical challeng-
es in implementing digital twins, collaborative practices of AI and digital twin technologies, and pathways to
breakthroughs in smart factory development.
Case Quectel Showcased Robrain AI Solution at IHR 2025
In October 2025, the International Humanoid Robot Summit (IHR 2025), themed Intelligent & Connected Future
· Ecosystem Coexistence, was held in Shanghai. We presented our Robrain AI robot solution alongside our full-
chain hardware and terminal capabilities, comprehensively demonstrating our core technological break-
throughs and industrialization capabilities in the humanoid robotics field.
Equal Treatment to SMEs
In our industrial chain collaboration, we always uphold the principle of integrity, giving equal importance and fair treatment to our small and medium-sized enterprise (SMEs) partners. We have
established a rigorous purchase order fulfillment system to ensure that all delivery acceptance criteria and timelines strictly comply with contractual agreements. Supported by standardized
processes, we achieve on-time delivery and transparent, well-structured payment settlements, eliminating any unjustified payment delays. These measures have effectively alleviated cash flow
pressures on SME partners and provided them with sustainable business support, jointly cultivating a trustworthy, compliant, and win-win industrial ecosystem.
During the reporting period, we had no overdue payments to SMEs.
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People-Oriented Approach Talent Acquisition
We have developed a multi-dimensional talent attraction system integrating “online + offline” and “do-
mestic + overseas” channels. We leverage diverse recruitment methods, including online platforms,
Employee Recruitment headhunting firms, internal referrals, campus recruitment, and university–enterprise partnerships, to
attract a wide range of talent, including professionals in software, algorithms, hardware, and testing, as
We adhere to the principle of merit-based selection, open recruitment, internal promotion first, and hiring well as key personnel in operations, sales, and management, thereby providing strong talent support
the most qualified candidates. We have established and improved various employee recruitment policies for our strategic development.
to standardize the recruitment process. In strict accordance with the Quectel Interviewer's Handbook, we We continue to deepen university–enterprise collaboration. In 2025, we conducted various engagement
maintain a consistent professional image and implement standardized recruitment practices based on activities such as enterprise visits, campus outreach programs, and job fairs in Guilin, Hefei, Linyi, and
the Employer Branding Action Checklist, ensuring openness, transparency, fairness, and impartiality in the other locations. We prioritize the recruitment of outstanding graduates from local universities, promot-
selection process. This approach safeguards talent quality at the source and reinforces a robust compli- ing deeper integration of industry, academia, and research, and supporting high-quality employment
ance framework for employment. opportunities for regional graduates.
Compliant Recruitment Key Performance in 2025
We have established a scientific, compliant, and transparent recruitment management mechanism,
supported by policies such as the Recruitment Management Measures, the Employee Handbook, the
International Recruitment Management Regulations, and the International Talent Referral Guidelines. A We conducted over 35 school-enterprise
process-driven approach is applied throughout recruitment, hiring, and employment management. interactive activities, resulting in an increase
The Employee Handbook explicitly prohibits the employment of individuals under the age of 18. During of 587 new graduate hires.
recruitment, we collect and verify background information such as identification cards and academic The number of new employees was 3,708
certificates, and strictly reject invalid or suspected child labor documentation. All forms of forced labor (including 770 local overseas recruits)
are prohibited; employees are free to choose their employment and may terminate their employment Employee turnover rate was 12.31% (global
relationship in accordance with the law. turnover rate was 12.31%, turnover rate in
We have established a fully transparent digital recruitment system. Leveraging the Moka intelligent re- China was 7.6%) Quectel's 2026 Campus Recruitment
cruitment management platform, we achieve full-process online traceability and documentation—from
job posting and resume screening to hiring decisions—providing precise data support for optimizing
talent selection standards and improving recruitment efficiency, thereby continuously enhancing the
scientific and standardized nature of talent management.
Awards in Talent Attraction and Employment
Key Performance in 2025
Labor contract signing rate Social insurance coverage rate
Liepin: Nowcoder: Moka: 51Job:
Shanghai Annual Pioneer Award for AI 2025 China Human Employer Excellence 2025 Award and
During the reporting period, we had no incidents of child labor or forced labor. Outstanding Employer Recruitment Practices Resources (Sirius) Excellence in Talent Attraction and
of the Year Award – Best Retention Award of 2025
Recruitment Team
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Diversity, Equality, and Inclusion
We firmly implement the diversity, equality, and inclusion (DEI) policy, recognizing diversity, equity, and inclusion as essential components of our core values. We have established institutional frameworks including the Anti-Discrim-
ination Policy, the Workplace Bullying Prevention Procedure, and the Respectful Workplace Policy. Discrimination in any employment-related matters, such as compensation, promotion, rewards, and training opportunities, based
on race, color, age, gender, marital status, or other protected characteristics is strictly prohibited. We are committed to fostering a healthy and safe workplace environment free from bullying, harassment, discrimination, and
violence, thereby safeguarding the legitimate rights, interests, physical well-being, and mental health of all personnel, including employees and external consultants. Employees may lodge complaints regarding discrimination or
bullying either in writing or verbally. Such complaints are handled in accordance with the Employee Complaint Control Procedure, with outcomes disclosed as appropriate.
Key Performance in 2025
During the reporting period, we did not have any complaints related to discrimination or harassment.
Employee Composition
≤30 4,473
Male 6,417
By Gender Female 2,539 By Age
≥60 11
Total Employees Administrative 218
Finance 52
Master’s Degree and Above 733
By Educa- Technical 6,102
Bachelor’s Degree 6,024 By Posi-
tion Level Sales 689
Associate’s Degree 1,220 tion
Production 1,465
Below Associate’s Degree and Below 979
Management 430
Employees with Disabilities Ethnic Minority Employees Overseas Employees Number of Female Senior Managers Proportion of Female Senior Managers
Diversity Employment Ratio
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Labor Dispute Resolution
Management Performance Appraisal
We are committed to fostering harmonious and stable labor relations and have established comprehen-
sive mechanisms for the prevention and resolution of labor disputes. In 2025, a total of 4 labor dispute We conduct PCB performance appraisals for supervisors at deputy director level and below.
cases occurred, all of which were resolved through mediation or compliant legal procedures. Prior to evaluation, organizational and individual targets are defined, followed by a mid-term
self-review. Supervisors and relevant colleagues participate in the evaluation process. The re-
Labor Dispute Management Measures sults are applied to salary adjustments and bonus allocation, adhering to a performance-based
principle that rewards high performers in line with the Company’s annual results.
Strengthened
Full Lifecycle
Source-Level Risk Awareness of Rights
Compliance
Control and Interests Pro-
Review
tection Welfare Benefits
Ensure all labor con- Establish a compliance re- Organize training sessions
We strictly comply with relevant laws and regulations by providing statutory benefits such as social
tracts comply with the view mechanism covering on labor laws and regula-
insurance and housing provident funds. We have also established comprehensive policies including the
latest labor laws and the entire employment li- tions for employees and
Corporate Benefits Management System, the Employee Benefits Policy, and the Team Building Manage-
regulations, with clearly fecycle, such as onboard- management to strengthen
ment Guidelines, forming a diversified and inclusive benefits framework that covers all employees. These
defined rights and obli- ing, employment, and legal awareness and rights
initiatives promote work–life balance, enhance employee well-being, and strengthen organizational co-
gations for both parties, termination, implementing protection consciousness,
hesion and engagement.
thereby mitigating risks legal risk controls at key promoting harmonious
at the source. stages to ensure regula- and stable labor relations
tory compliance. through a culture of compli-
Employee Benefits Programs
ance.
Statutory Paid leave, pension insurance, medical insurance, work injury insurance, maternity insur-
Benefits ance, unemployment insurance, and housing provident fund
Daily Allow- Communication allowance, transportation allowance, meal allowance, and business trip
Remuneration and Benefits ances allowance
Medical Health check-ups, supplementary commercial insurance, and exclusive dental cleaning
Benefits and vision care activities, and the “Xiaoyi Peizhen” health app
Remuneration System Gifts and Wedding benefits, illness consolation payments, and newborn benefits for female employ-
Consolation ees
In compliance with applicable laws and regulations, we have established a scientific and well-structured
remuneration system comprising base salary, benefits, allowances, and annual bonuses. Supporting poli-
Other Bene-
cies such as the Performance Management Policy ensure that employees are provided with fair, reasona- Birthday benefits, holiday benefits, team-building activities, and the Yixin Plan benefits, etc.
fits
ble, and market-competitive remuneration and benefits.
Individual Performance-Based Bonuses
We evaluate and award employee bonuses based on both business performance and individual
performance (such as teamwork and work efficiency), guiding employees to promote team
goals while achieving self-improvement.
Various Welfare Columns
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Case Launch of the “Xiaoyi Peizhen” Platform
In August 2025, we continued to enhance the employee health protection system and officially launched the “Xiaoyi Peizhen” internal app under the
“Quectel Care Program.” In collaboration with third-party professional service providers, the platform offers one-stop medical assistance services, in-
cluding pre-visit consultation, in-hospital accompaniment, examination support, medication reminders, and weekly health reports. These tailored servic-
es effectively address practical challenges employees face during medical visits, reflecting the Company’s strong commitment to employee well-being
and humanistic care.
Case Quectel Global Headquarters: A Hub for Innovation and Vitality
In December 2025, Quectel officially inaugurated its global headquarters, thoughtfully designed with a people-oriented approach to comprehensively enhance employees’ work and
life experience, creating a healthy, vibrant, and welcoming workplace environment.
Co-created Spaces and Human-centered Work- Diverse Health and Fitness Facilities Enhanced Social and Lifestyle Amenities
place Design
Employees were invited to participate in the planning phase, The headquarters is equipped with a professional-grade We emphasize employee well-being and social interaction
contributing to spatial layout, workflow design, and acoustic gym, badminton court, basketball court, and shower facili- by providing a large-scale staff cafeteria and café lounge,
considerations, to effectively enhance the workplace expe- ties, as well as yoga/dance studios and table tennis/billiards creating a comfortable, home-like atmosphere. Additional
rience. The office features additions such as private phone areas, meeting diverse fitness needs and enabling employ- facilities such as reading rooms and casual meeting areas
booths and coat racks, optimized signage systems for im- ees to stay active and energized. offer quiet spaces for focused work and relaxed communi-
proved collaboration, and architectural designs encourag- cation.
ing stair use to promote a healthier work environment.
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Working Hours and Leave Management Listening to Employee Voices
We strictly comply with relevant laws and regulations in various regions. We have established policies such
as the Attendance and Leave Management Policy, the Leave Administration Measures, and the Working
Hours Management Procedures. These frameworks clearly define working hours, attendance require-
Democratic Management
ments, rest and leave entitlements, and overtime management, ensuring that employees in all regions are We have established a structured and multi-level employee participation mechanism in accordance with
legally entitled to rest and leave. the law, forming a comprehensive democratic management system that safeguards employees’ rights to
In 2025, we issued the Initiative on Simplifying Work Practices, encouraging all employees to improve effi- democratic decision-making, management, and oversight. In July 2025, we convened our first Employee
ciency, eliminate ineffective overtime, and foster a pragmatic, performance-oriented work culture. Representative Congress of the year, during which matters such as the election of employee representative
directors were reviewed and approved.
Working Hours Policy
Communication and Grievance Mechanisms
We implement a standard working hours system. Overtime is compensated in accordance with
statutory pay rates. Office employees may opt for compensatory leave in lieu of overtime pay.
We have established and maintained diversified communication and grievance channels, proactively listen-
ing to employee feedback and fostering an open and transparent communication environment. Employees
are encouraged to provide suggestions on topics such as workplace conditions and management improve-
ments. The leadership team is committed to timely responses and continuous optimization of internal com-
Leave Policy munication, thereby strengthening organizational trust and cohesion.
We have implemented a paid annual leave system based on cumulative service length, tiered enti-
tlement, and compensation for unused leave. Employees are entitled to paid leave including annual
leave, marriage leave, maternity leave, paternity leave, and parental leave, in accordance with appli- Employee Communication Channels
cable laws and local regulations.
We prioritize compensatory leave and encourage timely utilization of accrued leave. HR actively
monitors and encourages employees to take accrued leave promptly to prevent excessive accu-
mulation and ensure adequate rest. Online Channels Offline Channels
Smart Attendance System • Face-to-face sessions with senior management
Online employee mailbox
• Democratic communication meetings
Internal EIP platform sections:
A smart attendance system with facial recognition is deployed to accurately record working hours. • “Culture into Departments” Initiatives
• Suggestions and Proposals
• Cultural Meet-up
• “Senior Executives Listen to you” channel
• Employee satisfaction surveys
• Rationalization Proposals
Key Performance in 2025 • Direct Access to CEO
• New employee tea sessions
• Employee interviews (0–14 years of service)
• “I Want to Tell You”
• Direct feedback to supervisors or department
Employee health • System Feedback
heads
check coverage with a total investment
rate reached of RMB
We provided supple-
mentary commercial
million
insurance of RMB
leave per employee
Employee dental check-
up coverage rate
million
days
Direct Access to CEO New Employee Tea Session
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Employee Grievance Management Measures
Complaint Mech- Employees are encouraged to file complaints regarding discrimination or bullying in writing or orally. We will handle and publicly announce the issues in accordance with the Employee Complaint Control
anism Procedure.
According to our Employee Handbook, we provide employees with diverse channels for grievances, including but not limited to the following:
• Employees can provide feedback, raise concerns, or submit performance-related complaints to their direct supervisors or department heads;
• If employees feel it is inappropriate to approach their direct supervisors or department heads, or if they are dissatisfied with their responses, they can communicate with the Human Resources De-
Employee Griev- partment;
ance Channels • If the issue remains unresolved, employees can also discuss it with the responsible leader. If it is still unresolved, they can escalate the final complaint to the Company's top management. The feedback
provided by the Company's top management will be considered the final conclusion.
• Other complaint channels: We have established the Chairman's mailbox, “I Want to Tell You,”and System Feedback platforms to collect employees' suggestions and issues regarding various aspects of
the Company, such as management issues, disciplinary violations, system usage, etc.
Grievance Han- We provide feedback within 7 working days (or as appropriate for complex cases), ensure confidentiality of complainants, and address verified issues in accordance with disciplinary provisions in the
dling Mechanism Employee Handbook.
Employee Communication Case
Case 1: Employee Communication Meeting Case 2: Corporate Culture Meetups Case 3: “Culture into Departments” Initiative
In 2025, we organized employee communication meetings, at- In 2025, we held 3 corporate culture meetups where senior ex- In 2025, we held a total of 8 “Culture into Departments” activities,
tended by 118 representatives from various business units. They ecutives shared insights on corporate values and management using formats such as games, thematic presentations, interac-
provided constructive suggestions on topics such as improving practices, enhancing employees’ understanding of the Compa- tive discussions, and workshops to communicate core values,
the work environment, logistics services, welfare guarantees, ny’s culture and strategic direction. The activities also included mission, and vision. These initiatives strengthened employees’
and the Company's development strategy, fully reflecting our a segment for supervisors to listen to employees' voices, allow- cultural alignment and enhanced team cohesion.
cultural philosophy of “openness, equality, and respect.” In the fu- ing executives to hear employees' suggestions and opinions
ture, we will systematically review and implement these sugges- through interactive communication, stimulating employees'
tions, translating employee feedback into tangible governance work enthusiasm and potential, and driving the Company for-
improvements, and achieving a win-win situation for both the ward.
Company and its employees.
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Employee Satisfaction Survey
Introduction of External Training
We actively conduct employee satisfaction surveys, covering employees from various departments and
levels. Our functional departments implement targeted improvements and response measures based
on the survey results. In the annual satisfaction survey, we collected feedback from employees across Industry-university Cooperation: We actively deepen our learning cooperation with
all business functions and levels (including but not limited to Human Resources, Finance, Administration, universities and jointly conduct technical training. By leveraging shared resources and
IT and Training). We implement closed-loop management of problems, and realize the benign interaction complementary strengths, both parties cultivate high-quality technical talent, injecting
between employee growth and enterprise development. fresh momentum into innovation and development. Meanwhile, we support university
talent development by providing internship opportunities, achieving mutual benefits.
“Going out” Training Model: We actively encourage and support employees to engage in
Employee Satisfaction Survey various external technical training, professional conferences, seminars and technology
exhibitions. We also facilitate cross-company learning and exchange platforms, organ-
In 2025, we received a total of 5,098 employee satisfaction survey questionnaires. The employee izing visits to leading benchmark enterprises within the industry for in-depth study and
satisfaction results were positive: knowledge exchange.
• Satisfaction rate on new employees’ onboarding: 98%
• Satisfaction rate on IT work: 94%
• Satisfaction rate on finance work: 95.94%
• Satisfaction rate on administrative work: 93.51%
• Satisfaction rate on Quectel Academy training: 94.6%
• Satisfaction rate on human resources work: 93.4%
Employee Training Practices
Employee Promotion and Development
Skills Training
Employee Training
Upholding a spirit of craftsmanship, Quectel regards employee development as central to its sustainable We place great importance on the enhancement of employee skills and knowledge up-
growth and is committed to building a value ecosystem where both the Company and its employees dates. Through internal instructor-led coaching, technical expert lectures, procurement
grow together. We have established and continuously improved the Training Policy. Through standardized of online resources, and technical salon discussions, we continuously improve our em-
and systematic training operations, we transform human capital into organizational competitive advan- ployees' technical skills and innovative capabilities. In 2025, we organized over 1,700 tech-
tage. We have developed a comprehensive, multi-level, and wide-coverage training system spanning the nical training sessions and internal sharing events.
entire employee lifecycle, enabling deep integration of talent development with corporate strategy and
ESG objectives.
Employee Training System
Professional Training
Diverse Training Models
In 2025, we delivered 1,621 professional training sessions, covering various areas such as
R&D technology, products, sales, production operations, and functions, reaching both do-
Online–offline integration: We adopt a combination of practical and theoretical training, as well
mestic and overseas employees. Additionally, we developed a portfolio of high-quality on-
as a blend of online and offline training models, accelerating the conversion of learning out-
line courses, providing employees with self-learning platforms and resources to accelerate
comes into practical applications.
skill acquisition, enhance work efficiency, and strengthen competitiveness.
Diverse training content: We offer various training courses including professional, management,
and general courses to meet the training needs of employees in different positions and at dif-
ferent levels.
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New Employee Training English Language Training
For fresh graduates: In 2025, we launched a 120-day “three-phase” structured development To support the global business and international talent develop-
program comprising 48 curated courses, supporting over 400 new hires in their transition ment strategy, we organized 30 English enhancement programs
to the workplace. The program spans career mindset development, capability advancement, in 2025, with over 8,000 participants throughout the year. Through
and factory internships, laying a solid foundation for career entry. interactive exchanges, original films, and dubbing competitions,
For experienced hires: We conduct onboarding training at the end of each month. Through we fostered an immersive English-speaking environment, helping
a “offline instruction + Q&A” model, employees quickly absorb corporate culture and policies, employees improve language proficiency to meet overseas market
enabling seamless onboarding and integration within the first month. In 2025, onboarding demands. In addition, external English learning platforms were in- On-site Factory
troduced, with coverage of up to 8,000 users, further strengthening Internship for New
training for experienced hires achieved a 100% coverage rate. Employees
global talent capabilities.
Leadership Training Employee Training Performance
Indicator 2025
In 2025, we successfully delivered multiple leadership development programs for manage-
ment personnel, covering over 300 participants; We launched the “High-Potential Talent Devel-
opment Program,” with major sessions held in regions such as Hefei and Guilin. We organized Total Investment in Employee Training RMB4.05 million
several “Management Advancement Program for Junior Managers and Advanced Courses”
for middle and junior managers, achieving a satisfaction rate of 98%. We also introduced the
Total Employee Training Hours 343,797 hrs
“Advanced Management Seminar” course and “Management Forum” exchange activities for
senior management. These programs combined online training camps with in-person ses-
sions, leveraging classroom instruction, case studies, and team collaboration to effectively Average Training Hours per Employee 38.39 hrs
enhance participants’ decision-making, communication, and coordination capabilities, ena-
bling them to address complex management challenges with confidence. Training Coverage Rate 97.7%
Training Hours for New Employees 58,695.6 hrs
通用类培训
Proportion of New Employees Trained 96.2%
General Training
Mid-level Management Training Hours 21,726.9 hrs
To comprehensively improve employees' overall competencies, we offer diversified general
training programs delivered both online and offline, covering regions including Shanghai, Proportion of Mid-level Management Trained 98.3%
Guilin, and Hefei. In 2025, we conducted a total of 43 general training sessions, focusing on
business processes, foundational skills, professional competencies, mindset development, Senior Management Training Hours 1,056.8 hrs
and management capabilities, providing a robust platform for employee growth.
Proportion of Senior Management Trained 100%
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Employee Promotion
We uphold a “people-oriented” philosophy and have established internal promotion policies such as the Position and
Employee Promotion Mechanism
Grade Promotion Management Policy and the Cadre Management System. We have built a diversified career develop-
ment system encompassing management, professional, and international career tracks, clearly defining employee
career pathways, stimulating continuous value creation, and enabling high-performing employees to grow within
the organization, thereby supporting efficient and sustainable corporate development.
We adhere to five core promotion principles: value creation priority, a combination of step-by-step and exceptional
Promotion and Development Pathways
promotions, internal talent prioritization, dynamic promotion management, and fairness and equity. Promotion crite-
ria and procedures are clearly defined, providing employees with transparent and structured career development
pathways. Aligned with our organizational development strategy, we have established diversified
career pathways, including a management track, a professional track, and international
assignments.
Dual-Track Career Development Path “Management Track”: Advance management skills and achieve step-by-step promotion
from M1 to senior manager: This track follows core criteria such as strategic contribution,
role value, and cultural alignment, fostering a dynamic organizational ecosystem where
Transparent Promotion Mechanism — Dual-Track Pathways to Guide Career Development
leadership roles are merit-based and fluid.
“Professional Track”: Enables continuous vertical development within specialized domains,
allowing employees to advance through professional grades. Employees may also transi-
Management Career Professional Career tion laterally across capability boundaries into the management track.
Development Path Development Path “International Assignments”: As part of the global talent development pathway, this track
supports individual career planning by providing opportunities to gain international experi-
ence and enhance comprehensive capabilities.
Department Technical Expert
Management
Team Senior Personnel
Management
Promotion and Development Principles
Core Personnel
Group
Management Value Creation Priority: High performers who continuously create job value are prioritized,
with holistic consideration of overall competencies.
Engineer Combination of Step-by-Step and Exceptional Promotion: Promotions generally follow a
sequential progression, while employees with outstanding contributions or exceptional
talent may be fast-tracked.
Assistant Engineer
Internal Talent Prioritization: Vacant positions are first opened for internal competition
and promotion; external recruitment is considered only when no suitable internal candi-
dates are available.
Individual Career Develop- Dynamic Promotion Management: Establish an organizational ecosystem where employ-
ment Path ees can be promoted or adjusted accordingly based on strategic contributions, role
value, and cultural practices.
Fairness and Equity: Clear standards, standardized processes, and disclosed outcomes
ensure fairness and equity.
Management track: M1–M13; Professional track: T1–T11
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Cadre Selection Standards
Core Values, Integrity and Work Style, Performance Contributions, Leadership, Decisiveness, and Execution
Performance Review Report
Practice Review
Senior Managers
With Self-Study Examinations
Mid-level Managers
Frontline Managers
Ordinary Employees Managing the Organization
Managing Others
Self-Management
High-Potential Talent Promotion Path
Employee Care and Assistance
We have established a global talent mobility mechanism and introduced the Global Internal Transfer Policy,
breaking geographical barriers and supporting employees in applying for positions across global subsidi-
aries based on their career plans and professional interests. These initiatives broaden career development
pathways, enables dynamic talent-to-role matching, and promote knowledge sharing and organizational
To continuously foster a warm and supportive workplace environment, Quectel has established and
synergy through cross-cultural and cross-regional mobility, thereby accelerating the Company’s globaliza-
implemented a structured employee care system. The Administration Department has formulated and
tion strategy and the development of a diverse talent ecosystem. In 2025, 128 internal transfers were com-
regularly updated internal policies such as the Association Management Guidelines, the Employee Care
pleted, accounting for 1.43% of the total workforce.
Activities Management Policy, and the Annual Event Organization Guidelines, standardizing administrative
support, corporate culture initiatives, and employee care practices. These efforts have effectively helped
employees relieve work-related stress and strengthened team cohesion.
Case Internal Transfer Month
Work-Life Balance
In 2025, under the annual theme of “Recharge at Work, Enjoy All Seasons”, the Administration Department
In November 2025, we organized the “Internal Transfer Month,” creating
planned and organized a series of year-round, company-wide activities in diverse formats. These initi-
diversified interaction platforms such as cross-business face-to-face
atives continuously fostered a positive, healthy, and supportive organizational atmosphere, while com-
exchanges and online knowledge competitions. The initiative broke down
prehensively addressing employees’ physical and mental well-being as well as their overall development
departmental silos, and promoted internal talent mobility and multi-skill
experience. The employee engagement system achieved not only broad participation in scale but also
development. The event effectively enhanced employees’ understand-
meaningful impact in quality through carefully designed themes, tiered operations, and human-centered
ing of the Company’s overall business landscape, and further expanded
care. It effectively strengthened connections among employees, teams, and between families and the
diversified career pathways. In 2025, the growth rate of internal transfer
organization, injecting strong cultural cohesion and organizational vitality into the Company’s strategic
applications reached 78%.
development.
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We achieved full employee coverage and deep engagement: as of the end of October, a total of 42 monthly themed activities had been successfully held nationwide, with 4,266 participants and an
overall satisfaction rate of 98.9%, demonstrating widespread recognition and active participation among employees.
Quectel's Thematic Employee Activities Quectel's Thematic Employee Activities
Theme Activity Description Theme Activity Description
Festive Celebrations: From April to September, we or-
Lantern Festival Gala, ganized 32 themed programs (50
Health
Spring Fun Fair, etc., Activities span all major festivals Management Well- sessions) with 711 total partici-
Empow- ness Programs: pants; we provided stress relief
covering Chinese throughout the year, fostering a
N e w Ye a r, D r a g o n strong sense of occasion, cultivat- erment Health, fitness, and and communication platforms for
Boat Festival, Mid-Au- ing a warm corporate culture, and and Vitality arts-themed activi- management, breaking hierarchi-
tumn Festival, Na- strengthening team cohesion. ties cal barriers, enhancing overall or-
Activation
tional Day and other ganizational vitality, and improving
key occasions team collaboration efficiency.
Interactive games and health-fo- We integrate ESG principles into
cused initiatives were conducted ESG Initiatives: World daily employee activities, including
Special Care: “520 Earth Day campaign stair-climbing challenges, environ-
across six major R&D centers
Special Event – To – “Keep It Green, Step mental knowledge competitions,
nationwide, delivering targeted
Our Shining Quectel- by Step” low-carbon second-hand item recycling, bicy-
employee care, reinforcing identi-
Cultural ers”
ty and emotional connection, and
Social Re- initiative cle power generation challenges,
Connec- conveying corporate warmth. sponsibility and waste sorting initiatives.
tion and & Sustaina-
Emotional bility Public Welfare In-
A total of 12 events were held tegration: Skillfully
Resonance Birthday Celebra- Strengthen employees’ awareness
throughout the year, covering 66 incorporating public
tions: Monthly group of corporate citizenship and social
sessions and over 4,290 employ- welfare elements
birthday events (all responsibility.
ees, ensuring consistent quality into various activi-
activities supported ties.
nationwide while delivering per-
by online booking
sonalized care, enhancing employ-
and closed-loop
ees’ sense of belonging. These activities were participat-
feedback)
ed by over 4,200 employees and
nearly 2,000 family members. They
Large-scale Family
Family serve as a bridge between the
Open Day, compa-
Company and employees’ families,
Autumn ny-wide autumn
extend corporate culture into
Exclusive Events: Outing outings, and over-
Pay tribute to the technical pio- family life, enhance employee
Programmer’s Day seas team-building
neers, fostering cohesion in R&D, Activities well-being and pride,
– “Code the Energy, activities
and stimulating innovative vitality. and emphasize global team-build-
Code the Brilliance”
ing through structured develop-
ment programs.
Health In 2025, we had a total of 103 asso-
Empow- Sports Initiatives: A total of nearly 1,700 employee ciations domestically (cultural and
Association
“Sports Carnival” and participants (including competi- Various Sports Asso- sports), held 3,699 activities, and
erment and Club
recruitment for di- tions), with an overall satisfaction ciations had 3,295 members, with an annu-
and Vitality verse interest clubs rate of 99.3%. Activities al total expenditure of RMB 2.3491
Activation million on association activities.
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Support for Employees with Special Needs
Quectel continues to strengthen its employee care framework, with a particular focus on supporting employees in
need and their families. We have introduced diversified, tailored care initiatives for female employees. We have re-
peatedly extended support to employees facing illness through visits and financial assistance, effectively addressing
In 2025, we provided support for 80 female employees giving birth, with exclusive benefits
their practical difficulties.
amounting to RMB 40,000.
In 2025, 101 people received our assistance, with a total of RMB 311,000 in aid provided.
We place strong emphasis on protecting the rights and interests of female employees by offering dedicated benefits
and support measures. These include special leave for women, maternity and nursing leave, and the establishment of
nursing rooms. Professional psychological counseling services are available, alongside regular women’s health sem-
inars and dedicated health check-ups. These initiatives collectively safeguard the physical and mental well-being of
female employees and foster an equitable, inclusive, and women-friendly workplace environment. In 2025, standard- Nursing Room at Quectel Global Headquarters Nursing Room at Hefei R&D Center
ized nursing rooms were officially put into operation at our new headquarters, equipped with professional facilities
such as baby care tables, private nursing areas, bottle warmers, and sterilization units, providing a private, hygienic,
and convenient space.
Case 2025 Quectel Women's Day Activities Case Barrier-Free Facilities Reflecting Human-Centric Care
We place high value on empowering women in the
Our office area is fully
workplace. Through various International Women’s
equipped with accessible
Day initiatives, we enhanced the employee expe-
pathways, elevators, wheel-
rience for female staff from multiple dimensions:
chairs, and blood pressure
We invited employees to share workplace insights
monitors, ensuring the con-
to break down occupational biases, customized
venience and health safety
exclusive care packages to meet diverse needs,
of employees from special
conducted DIY activities to stimulate creativity,
groups, reflecting humanis-
and genuinely cared for the growth and develop-
tic care and inclusive design.
ment of women. Barrier-free Facilities at Changzhou Quectel
Providing Mental Health Support
Quectel continues to build a comprehensive employee care framework, placing employees’ physical and mental well-being at the core of its sustainable development strategy. Through the “Yixin Program” and a range of practical
benefits, we provide professional psychological support services. For cross-regional benefits, international employees can access mental health tools and professional counseling services online. In 2025, we conducted a total of
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Occupational Health and Work
Yixin Program Activities in 2025
Safety
Governance
Quectel strictly complies with the Work Safety Law and has established a robust occupational health and
We held “Yixin Carnival Activities” at various safety (OHS) management system. We have formulated and implemented various internal policies, including
locations, using interactive games such as the Occupational Health Management Policy, the Labor Protection Equipment Management Policy, the Man-
Stress Relief painting, technology meditation, and emo- agement System for Safety and Environmental Laws, Regulations and Other Requirements, and the Work
tional mapping to help employees relieve Safety Management Policy. These frameworks enable end-to-end prevention and control of occupational
stress. injuries and diseases from workplace environment optimization and facility configuration to comprehen-
sive safety training. We regularly conduct safety inspections to reinforce accountability for work safety. We
have obtained ISO 45001 Occupational Health and Safety Management System certification.
We have established a Work Safety Management Committee, chaired by the general managers of our sub-
sidiaries, with heads of EHS departments serving as deputy chairs. Members include senior management
and heads of all departments, forming a multi-dimensional safety governance mechanism characterized
by leadership oversight, cross-departmental coordination, and full employee participation, ensuring com-
prehensive protection of employee health and safety.
In addition, we have introduced the Occupational Safety, Health and Environment Responsibility Manage-
In 2025, we consistently responded to ment Standard, clearly defining a “responsibility-to-individual” mechanism. Each year, responsible persons
letters from the “Worry-Free Mailbox” every sign Responsibility Agreements for Occupational Health and Safety, Environment, and Security with their re-
Worry-Free Mailbox quarter, providing employees with a safe spective departments to reinforce accountability. We have established a safety accountability task force
and private platform to express their feel- to supervise and assess the performance of committee members, incorporating the assessment results
ings and build mental strength. into annual performance evaluations, implementing clear rewards and penalties to effectively promote
accountability. Through cascading accountability and closed-loop management, we ensure the efficient
operation of the work safety management system.
Director of Work Safety Commit-
tee | General Manager
Deputy Director of Work Safety Com-
We organized family-oriented psychologi- mittee | EHS Supervisor
Workplace Parent- cal support activities, focusing on parent-
ing Support Hub ing challenges, to support the harmonious
development of parent-child relationships.
Head of Head of
Head of Head of Head Head of Head of
Manufac- Adminis-
Project Quality of IT Planning Human
turing & tration &
Manage- Manage- Depart- Depart- Re-
Opera- General
ment ment ment ment sources
tions Affairs
In 2025, our internal platform published a
total of 48 issues of Yixin Reading: Weekly Organizational Structure of Work Safety Management Committee
Tips, conveying psychological care tech-
niques covering areas such as emotional
stress and interpersonal communication,
Mental Health Jour- helping employees intuitively understand
their mental state.
nal In 2025, we issued 12 bilingual editions of
Yixin Micro Journal, providing mental health
knowledge, self-care strategies, and in-
formation on available company support
resources, helping employees balance
professional and personal development. ISO 45001 Certification Quectel Changzhou - Level 2 Work Safety
Standardization Enterprise
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Strategy
We strictly implement internal standards such as the Environmental Hazardous Factors Control Management Policy, the Safety and Environmental Inspection and Monitoring Management Standard, and the Operational Control
Procedures for Environment and the Occupational Health and Safety. The Company regularly updates key control documents, including the Environmental Factors Identification and Evaluation Register, the Environmental Factors
Identification and Evaluation Register, and the List of Occupational Hazard Factors, to systematically identify and manage workplace risks and impacts. We regularly organize safety inspections for office facilities and special
equipment, equipping labor protection supplies as needed to prevent accidents from the source.
Management of Impacts, Risks, and Opportunities
Safety Risk Prevention and Control Among Employees
We implement a comprehensive occupational health monitoring mechanism and establish complete employee health records. Our production sites enforce a full-cycle medical examination regime covering pre-employment,
in-service, pre-departure, and emergency scenarios, effectively enhancing emergency response speed and on-site first aid capabilities. In parallel, we have developed the Work-Related Injury Emergency Response Plan, forming
an integrated “prevention–monitoring–response” management system to safeguard employee health and safety in all aspects.
To build a solid workplace safety barrier, we have completed the standardized configuration of 26 AED devices across domestic and overseas R&D centers, along with 5 in-person practical training sessions, as well as compa-
ny-wide online courses and instructional videos.
Key Measures for Employee Health and Safety Risk Control
Based on job requirements, frontline employees in warehousing and production are equipped with personal protective equipment (PPE), including masks, noise-reduction earplugs, and
Enhancing Personal Protection
safety shoes and helmets. Supplies are provided in sufficient quantities and regularly updated. First-aid medicines and equipment are also available and routinely inspected and replaced.
Our production and operation sites are maintained in a clean, well-lit, and well-ventilated condition. Passageways are kept level and unobstructed with adequate lighting.
Optimizing Working Environment
Prominent safety signage is installed to ensure clear visibility of workplace hazards.
Appropriate facilities, such as ventilation, fire prevention, explosion protection, anti-toxicity, anti-static, and isolation systems, are installed based on the properties of chemicals in use.
Hazardous Materials and Equip-
Residential use within production areas is strictly prohibited. Production equipment is subject to regular maintenance and inspection to ensure that all safety protection devices remain
ment Management
fully functional.
A standardized process covering accident reporting, investigation, analysis, and resolution has been established. In the event of an incident, the head of the responsible department
Improving Work-Related Injury
serves as the primary accountable person, while the General Management Department coordinates medical response. All departments act promptly to prevent escalation, protect the
Emergency Mechanism
site, and properly manage follow-up actions.
AED and Practical Training
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Emergency Safety Management Occupational Health and Safety Training
We have established a systematic hazard identification and remediation mechanism and strictly implemented the Emer- We place strong emphasis on strengthening employees’ awareness of occupational
gency Response and Control Procedures. Regular emergency drills are conducted to ensure rapid and efficient response health and safety by organizing a wide range of training programs aimed at en-
to unexpected incidents, minimizing potential losses. hancing safety awareness and emergency response capabilities.
Graded and Classified Inspections: Occupational Health and Work Safety Training Performance in 2025
Hazards are categorized based on severity, with registers established for
tracking and archiving, forming a closed-loop process of “identification–reg-
Total Safety Training Hours 151.5 hrs
istration–rectification.”
Daily Inspections:
Safety inspectors regularly conduct detailed checks on production sites to Total Participants in Work Safety Training 21,356 participants
promptly identify and eliminate potential risks.
Hazard Special Inspections: Total Work Safety Training Sessions 1,982 sessions
Identifica- During holidays and major events, targeted safety inspections are carried
tion out to strengthen risk control during critical periods.
Comprehensive Periodic Reviews:
Systematic evaluations of production processes, equipment, and working en-
vironments are conducted regularly to continuously enhance overall safety
Case “Ankang Cup” Knowledge Competition and Fire Safety Month Quiz
standards.
To enhance EHS awareness among new employees,
Quectel Changzhou organized EHS competitions, adopt-
Emergency Management: ing a “learning-through-competition” approach. These
Each unit has established an emergency command center, standardized activities deepened employees’ understanding of en-
emergency response processes, and conducted various comprehensive vironmental protection, occupational health, and work
emergency drills, special drills, and on-site response activities. safety, while strengthening their safety awareness and
Emergency Response Plans: emergency response capabilities.
Tailored contingency plans are developed for different types of emergencies,
Emergency enabling categorized and precise responses. A three-tier emergency plan
Drills system consisting of “comprehensive plans + specialized plans + on-site re-
sponse plans” has been established, with regular drills and evaluations organ-
ized.
Case First Aid Safety Training
To improve overall health and safety
awareness, we organize annual first aid
Case Fire Safety and Evacuation Drills training sessions delivered by professional
medical practitioners. The training covers
essential first aid knowledge, including car-
We conduct regular annual fire safety and evacuation drills, simulating re- diopulmonary resuscitation (CPR), equip-
al-life fire scenarios. Under the guidance of trained professionals, employ- ping employees with the skills needed to
ees learn the proper use of firefighting equipment and essential evacua- respond effectively in emergencies and
tion techniques. These drills also test the effectiveness of alarm systems ensuring a safer workplace environment.
and evacuation routes, comprehensively enhancing employees’ emergen-
cy response capabilities, as well as their ability to perform self-rescue and Emergency Drill at Quectel
mutual aid, thereby ensuring personnel safety and operational continuity. Changzhou
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Indicator and Target Management
Occupational Health and Safety Targets Progress in 2025 Smart Agricultural Machinery Empowering Field Operations
Continuous Investment in Work Safety A total investment of RMB 611,800 in work safety.
Occupational Disease Incidence Rate: 0% Achieved
Full-process Coverage and Intelligent Management
No Employee Fatalities Due to Work-related Acci-
Achieved
dents
The system integrates high-precision BeiDou PPP positioning, multi-sensor fusion navigation algo-
rithms, and AI-enabled decision-making, upgrading agricultural machinery from traditional tools to an
No Work Safety Incidents Achieved
“assisted driving brain” with continuous signal support for uninterrupted operation.
The FMA series autonomous driving system improves operational efficiency by ≥30%, increases fuel
Employee Work Injury Insurance Coverage: 100% Total Work Injury Insurance of RMB 3.3995 million
efficiency by 18%, and raises seeding overlap accuracy from 75% to 97%, substantially reducing labor
costs and resource waste.
Employee Work Injury Insurance Coverage: 100% Investment in Employee Work Injury Insurance: RMB 668,200
A total of 789 hazards identified, with a rectification rate of
Safety Hazard Inspection
Work Safety Training Coverage: 100% Achieved
Flexible Route and Mode Optimization
Rural Revitalization Initiatives The system performs global route optimization to accommodate diverse terrains and supports mul-
Quectel actively responds to the Rural Revitalization Strategy by leveraging its strengths in IoT tech- tiple operation modes (e.g., AB straight-line, diagonal harrowing). It can automatically adjust to uneven
nologies to build an integrated smart agriculture management platform. This platform enables visual- terrain and offers features such as one-touch turning, route memory, and sharing, enhancing efficien-
ized management of farming activities, agricultural machinery, and field conditions, thereby empow- cy while minimizing waste.
ering the development of modern agriculture.
Through the self-developed high-precision agricultural machinery navigation assistance system,
combined with AI-enabled decision-making, we drive the transformation of agricultural operations to-
ward standardization and precision. This significantly improves productivity and resource utilization,
reduces labor costs for farmers, and provides critical technological support for food security and Differentiated Product Solutions
sustainable agricultural development.
Digital Rural Development · Farmland Management
FMA310, based on high-precision Beidou positioning, enables
centimeter-level operations across the entire farming cycle
(plowing, planting, management, and harvesting), adapts to
Digital Farmland Infrastructure AI-powered Farmland Management
complex terrains and mainstream machinery, and reduces
Leveraging NB-IoT, 5G, and satellite com- Based on the Provecta AI vision solu- overlap and omission through intelligent planning, improving
munication modules, the system enables tion, the system automatically analyzes land utilization and lowering fuel consumption.
environmental safety, precise position- crop growth, provides early warnings FMA210 is designed specifically for small to medium-sized
ing of agricultural machinery, and full for pests and diseases, and supports farms, significantly reducing installation and maintenance
lifecycle traceability. Integrated smart agricultural product sorting. This shifts costs while ensuring centimeter-level accuracy. It features
irrigation and soil moisture detection decision-making from experience-based practical functions like one-click turning back, meeting the
allow automated control of water and to data-driven, significantly improving needs of various scenarios in both irrigated and dry fields.
fertilizer inputs. standardization and yield efficiency.
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Social Contribution
Fulfilling Corporate Responsibility Case Overseas Practices and Employee Development
Guided by the mission of “Building a Smarter Earth,” Quectel is committed to making outstanding contri- To enhance competitiveness in international markets and achieve mutually beneficial outcomes with
butions to the global IoT industry and continuously creating social value. Leveraging the geographic ad- local markets, our overseas R&D centers and manufacturing facilities continue to advance localiza-
vantages of the Yangtze River Delta, we actively align with and contribute to the “Integrated Development tion strategies. We have increased local hiring ratios and provided diversified professional training
of the Yangtze River Delta Region” strategy. Through enhanced regional collaboration, we promote the for local employees, creating valuable employment opportunities and contributing to local economic
integrated innovation of advanced communication technologies such as 5G and IoT, injecting strong mo- growth.
mentum into the development of the regional digital economy. Across China, we have created thousands
of jobs spanning software, algorithms, hardware, testing, technical support, operations, product manage- Global Employee Integration Activities:Fostering cross-cultural
ment, and sales, providing diversified career opportunities for local communities. communication and mutual understanding among global em-
ployees.
• Innovative Formats: Strengthening communication through
activities such as puzzles, painting, and competitions, with a fo-
Strengthening With 5G/5G-A industrial modules and AI vision solutions at the core, we serve over 100 manufac- cus on “cultural integration, communication and collaboration,
the Digital turing and power grid enterprises, advancing “5G + Industrial Internet” transformation and ena-
and technological awareness.”
bling cost reduction and efficiency gains.
Foundation of • Wide Coverage: Over 160 new employees from more than 15
Our modules are widely applied in smart transportation, energy, and security, supporting refined
Smart Cities urban governance and new urbanization. departments participated in activities in Penang and Belgrade.
Building an International Management Training： Building global manage-
We have launched satellite communication modules to enable “terrestrial + satellite” full cover- ment alignment and collaboration capabilities.
Integrated age, ensuring stable connectivity in remote areas, maritime, and aviation scenarios.
Space-Ground • From 0 to 1: 8 training sessions were conducted, with 96
During earthquakes and floods, our emergency communication modules support command
Emergency coordination and resource deployment, forming a critical component of national emergency participants, covering managers across international R&D and
System systems. non-R&D functions.
• Diverse Themes and Formats: Workshops, case studies, ex-
New Employee Integration Activities
perience sharing, and seminars addressed topics such as
Enhancing in Penang
Our modules are extensively applied in telemedicine, mobile healthcare, supporting tiered diag- cross-departmental communication, team building, and con-
Social Govern- nosis systems and smart hospital development. Applications such as smart metering, wireless flict management.
ance and Public payments, and elderly care continue to expand, improving public service efficiency and contrib-
Well-being uting to common prosperity.
Community Engagement and Co-devel-
Advancing the Belt and Road Initiative Through our global footprint, we support digital infra-
Advancing the structure development under the Belt and Road Initiative. Our low-power modules and industrial
Belt and Road
opment
energy-saving solutions help reduce carbon emissions across industries, while also driving coor-
Initiative dinated development across upstream and downstream sectors, including chips and terminals,
thereby fostering industrial clusters and job growth.
Quectel consistently regards the fulfillment of corporate responsibility and the promotion of community co-de-
We strictly comply with all applicable laws, regulations, and policy requirements. With the principles of in- velopment as an integral part of its sustainability strategy. Through community activities, anti-fraud awareness
tegrity and lawful operation in mind, we rigorously comply with tax regulations, and ensure the timely and campaigns, and fire safety outreach, the Company actively contributes to building safer and more civilized
full payment of all taxes. In doing so, we fulfill our tax obligations and contribute to local economic and communities. It fosters mutual integration and shared responsibility between the enterprise and local commu-
social development. In 2025, we paid a total of RMB 269.42 million in taxes. nities, helping to create a safe, well-regulated, and harmonious social environment. In 2025, we organized and
participated in various community engagement initiatives in Shenzhen, Foshan, Guilin, and other locations.
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RMB 20,000 to the Wujin District Charity Federation in 2025. The former was used to help impoverished
“Nanshan in families, families affected by illness improve their living conditions, students in difficulty improve their
Full Swing · learning conditions, and help individuals affected by natural disasters or accidents. The latter was used to
Benefits for In 2025, we participated in the “Nanshan contribute to the development of local charitable initiatives and broader social welfare.
All Workers” in Full Swing · Benefits for All Workers”
Thematic Thematic Campaign, and jointly organ-
Campaign ized the “Software Park Cup” basketball Public
tournament with industrial parks and Welfare Key Achievements
Shenzhen
local communities. The event enriched Activities
employees’ leisure life, enhanced health
awareness, and strengthened interaction
“Software and integration between the Company In 2025, we launched the “Empowering Rural Education”
Park Cup” and the community. initiative, focusing on improving teaching conditions in
Basketball former revolutionary areas and remote schools.
Tournament Following on-site assessments and needs alignment, we
donated a total of 1,772 items, including furniture (desks,
Education-
chairs, bookshelves), IT equipment (computers, printers,
al Support broadcasting systems), and sports equipment, valued
at RMB 963,000 to schools in Jinzhai County and Huoshan
By leveraging local service center re- County, Anhui Province. All materials were delivered to
sources, we helped develop diversified the schools by December 2025, ensuring timely deploy-
Shared spaces for employee fitness and rec- ment and effective utilization.
Foshan Community reation. Activities such as table tennis Scholarship Donation
Facilities and yoga clubs provided convenient,
high-quality platforms for exercise and In 2024, we donated a total of 3,499 items, including
relaxation. customized desks and chairs, graded books, and sports
Follow-up equipment, to two primary schools in Cangwu County,
on and conducted a follow-up visit in March 2025. The do-
Previous nations effectively improved teaching conditions, earn-
ing us certificates of appreciation and banners from
The Guilin R&D Center actively integrated Donations
into the local community by organizing the schools, with enthusiastic responses from teachers
employee participation in local marathon and students. Follow-up on Previous Donations
Community
Guilin events and co-hosting sports competi-
Sports Events tions with other enterprises, strengthen-
ing interaction among the Company, the “Doing
community, and regional businesses. Employees across our locations actively participated in
Good
public welfare efforts, handcrafting items such as pen-
Together” cil cases and study kits to support those in need.
Initiative
Advancing Social Welfare Volunteer Activities
Guided by its philanthropic philosophy of “Overcoming All Challenges, Extending Love Far and Wide,” we have Quectel’s Social Welfare Key Performance Indicators in 2025
established a systematic public welfare framework and a distinctive model for charitable engagement. We
have formulated the Public Welfare Donation Management Guidelines to standardize donation processes and Indicator Value
clarify departmental responsibilities. Focusing on educational support, we rigorously screen beneficiaries to
ensure legality, compliance, traceability, and evaluability, while integrating anti-corruption controls to form a Total Volunteering Activity Hours 618 hrs
well-structured and accountable operational system.
Since 2020, we have carried out educational public welfare activities for five consecutive years, with a total Average Volunteer Service Hours Per Employee 44.14 hrs
donation amount of RMB 4.7501 million and more than 12,135 items of donated materials. The geographical
scope has expanded from Anhui Province to Guangxi Province, and the beneficiary institutions include rural Total Number of Beneficiaries from Our Volunteer Services and Donations 1,583 beneficiaries
schools, nursing homes and other institutions, forming a traceable and assessable public welfare trajectory.
Regarding public welfare foundations, we donated RMB 1 million to the Shanghai Sunrise Foundation and Total Charitable Donations RMB 1.983 million
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Governance
Improving Corporate Governance 77
Protecting Investor Rights and Interests 79
Compliance and Internal Control 80
Business Ethics 81
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Improving Corporate Governance
Governance Structure
Key Corporate Governance Performance in 2025
In accordance with the Company Law, the Securities Law, and the Code of Corporate Governance for Listed Companies in China, as
well as other applicable laws, regulations, and normative documents, Quectel has established a corporate governance framework
composed of the Board of Shareholders, the Board of Directors, and the management team, featuring coordination, mutual sup-
port, and effective checks and balances. Our specialized committees, based on internal regulations and practical control require- 3 meetings: 28 proposals were deliber-
ments, implement standardized and efficient management decision-making and operational supervision mechanisms, providing Board of Share-
professional support for the Board’s decisions. holders
Extraordinary General Meeting 100% approved
We revised the Articles of Association of Shanghai Quectel Wireless Solutions Co., Ltd., the Rules of Procedure for the Board of
Shareholders, the Rules of Procedure for the Board of Directors, and other documents. Guided by the principles of scientific de-
sign, streamlining, efficiency, transparency, and checks and balances, we have rationally structured our internal functions, clearly
Supervisory Board 25 proposals were deliber-
defining responsibilities and authorities in alignment with our development strategy, corporate culture, and management require- 4 meetings
(Before cancella- ated
ments. 100% of supervisors attended
tion) 100% approved
Board of Shareholders
Strategy Committee
Remuneration and Appraisal Committee Board of Directors ated
Board of Directors 100% approved
Nomination Committee
Board Secretary
Audit Committee
CEO/General Manager
Special Committees under
Number of Meetings Proposals for Deliberation
the Board of Directors
Sales and
R&D Products Operations Marketing Audit Committee 5 14
Software Service Platform Departmen
Technical Support Department Ikotek
Short-Range Products Department
Operator Cooperation Department
Strategy Committee 2 5
Project Management Department
Engineering Project Department
Structural & Engineering Design
Production Quality Department
Human Resources Department
Smart Agriculture Department
Administration Department
GNSS Products Department
Automotive BU Department
Quectel Research Institute
Internal Audit Department
Marketing Department
Operation Department
Hardware Department
Products Department
Software Department
Antenna Department
Finance Department
Changzhou Quectel
Legal Department
Sales Department
Secretary’s Office
Quectel Academy
Test Department
IPR Department
IT Department
Department
Provecta AI
Nomination Committee 0 0
Remuneration and Appraisal
Committee
Note: The Company, in accordance with the latest provisions of the Company Law and other relevant laws, regulations, and normative documents, and in The approval rate for the above proposals was 100%
light of its actual circumstances, has decided to abolish the Supervisory Board and supervisors, which was deliberated and approved at the Sixth Meet-
ing of the Fourth Supervisory Board regarding the “Proposal to Abolish the Company's Supervisory Board.”
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Board Effectiveness Board Diversity
To enhance the scientific rigor and effectiveness of Board decision-making, we adhere to a mer-
To enhance Board decision-making quality and overall governance effectiveness, we have taken a systematic ap- it-based principle in director selection and promote a diversified Board composition. In nominating
proach across four key dimensions: structural optimization, process standardization, capability building, and digital and appointing directors, we evaluate candidates based on their professional expertise and experi-
empowerment. ence, while also considering diversity factors such as age, gender, cultural background, educational
background, and professional skills. This multi-dimensional approach leverages diverse perspectives
In strict compliance with the Company Law and corporate governance rules, we
Optimizing to support sound decision-making and ensures a balanced and well-structured Board.
continuously optimize the composition of the Board, emphasizing diversity of pro-
Structure and
fessional backgrounds. Directors are encouraged to contribute independent and
Decision-making
well-informed perspectives based on their expertise, thereby enhancing the inde-
Mechanisms
pendence and scientific rigor of decision-making. Gender Diversity
We standardize procedures for convening Board meetings and making decisions.
Introducing Female Male
For complex or specialized matters, we actively engage independent third-party
Professional institutions, such as external financial advisors, to provide professional opinions and
Support support informed Board decision-making.
We have established and implemented a scientific performance evaluation mecha- Educational Background Diversity
Emphasizing
nism to urge diligence and responsibility. At the same time, directors participate in
Both Evaluation
professional training organized by regulatory authorities to continuously strengthen
and Training
their capabilities in corporate governance, industry trends, and risk management. Bachelor’s degree Master’s degree
Enhancing Effi- 60% 40%
Digital platforms such as Lark are leveraged to manage Board affairs, streamline
ciency through
meeting processes, improve information processing and collaboration efficiency,
Digital Empower-
and enhance the transparency and standardization of decision-making.
ment Age Diversity
Board Diversity 35-45 years 45-55 years 55 years and above
Board Independence 20% 60% 20%
In accordance with the Measures for the Administration of Independent Directors of Listed Companies and other
applicable regulations, we have continuously strengthened the role of independent directors within our corporate
governance structure, with a view to enhancing standardized governance.
Professional Background Diversity
As of the end of the reporting period, our Board consisted of 5 members, including 2 independent direc-
tors, representing 40% of the Board. Directors with finance and tax management
Directors with industry expertise or experience
In 2025, we revised the Independent Director Work System, and disclosed the Special Report on the Self-Ex- experience
amination of the Independence of Independent Directors by the Board of Directors. These measures
ensured that independent directors could perform their duties independently and express independent
opinions on major corporate matters, thus safeguarding the overall interests of the Company, with par-
ticular attention to protecting the legitimate rights and interests of minority shareholders.
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Remuneration Management
In compliance with applicable laws and regulations, Quectel has established a set of remuneration policies aligned with industry benchmarks and tailored to its operational context, including the Implementation Rules of the Re-
muneration and Appraisal Committee of the Board. The remuneration of directors and senior management is disclosed in periodic reports, ensuring a professional and institutionalized remuneration management framework.
The remuneration system for directors and senior management is implemented in strict accordance with established policies and is administered in a standardized and reasonable manner. Directors’ remuneration is deter-
mined by the Board of Shareholders, while that of senior management is determined by the Board of Directors. Remuneration levels are benchmarked against industry and regional standards and are tied to the Company’s
annual performance as well as individual performance evaluations. Allowances for independent directors follow the same principles. Senior management is subject to an annual salary system, comprising a fixed base salary paid
monthly and a performance-based component tied to appraisal results. Overall remuneration incentives are strictly aligned with job value and performance outcomes. During the reporting period, we had no non-compliance
incidents, ensuring that incentives are commensurate with performance and the Company’s development objectives.
Protecting Investor Rights and Interests
Protecting investors’ rights and interests is both a fundamental obligation of a listed company and the cornerstone for building market credibility and earning investor trust. At Quectel, we have revised policies such as the In-
vestor Relations Management System, the Information Disclosure Management System, and the Board Secretary Work Guidelines to ensure that investors receive information timely and fairly. We provide multiple communication
channels for investors, patiently answering their inquiries and establishing a responsible and reliable corporate image.
Investor Communication
We attach great importance to extensive and in-depth engagement with investors and continuously improve our investor relations management system. We have established a multi-level, multi-channel communication frame-
work to ensure timely and effective information dissemination. Adhering to the principles of compliance, fairness, proactiveness, and integrity, we provide full and transparent disclosures, accurately address investor concerns,
and actively solicit and incorporate investor feedback. On this basis, we effectively safeguard the legitimate rights and interests of investors, especially minority shareholders, and are committed to creating a regulated, healthy,
and mutually trusting market ecosystem.
Investor Communication Channels: General Meetings, Investor Hotline, the SSE e-Interactive Platform, Seminars, Investor Briefings, Analyst Meetings, Roadshows, Visitor Reception and Periodic Report Disclosures.
Regular Training: Regular Training: We regularly provide systematic training on investor relations management for directors, senior management, and relevant personnel.
Shareholder Returns
Key Investor Communication Performance in 2025
Since its listing, the Company has implemented 8 dividend distributions with a cumulative payout of ap-
proximately RMB 749 million. Sessions of Investor Reception 82 sessions
We assessed the feasibility of multiple dividend distributions, convened General Meetings in accordance
with relevant rules, authorized the Board to formulate and implement interim dividend plans. In 2025, we
distributed an interim cash dividend exceeding 143 million (tax inclusive), accounting for 30.54% of the
Earnings Briefing Sessions 3 sessions
net profit attributable to shareholders of the listed company in the interim consolidated financial state-
ments.
The Company’s proposed annual cash dividend for 2025 amounts to RMB 109.37 million (estimated; the
Responses to e-Interactive Platform Inquiries 110 times
final amount is subject to approval at the 2025 Annual General Meeting).
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clarity of provisions to eliminate potential loopholes. Management measures are closely aligned with oper-
Information Disclosure Management ational needs, and through systematic risk identification, assessment, and preventive control mechanisms,
compliance risks are maintained within acceptable limits. We have also established internal policies such
In accordance with the latest regulatory requirements, including the Measures for Administration of Infor- as the Export Control and Trade Compliance Policy, the Contract Management Policy, the Authorization and
mation Disclosure of Listed Companies, we continuously optimize our internal management system and Signature Management Policy, and the Corporate Seal Management Measures, forming a robust compli-
have revised and enhanced policies such as the Information Disclosure Management System, the Man- ance management framework that ensures all business activities are governed by clear and enforceable
agement of Insider Information and Insiders, the Internal Reporting System for Major Information, and the compliance standards.
Management of Deferred and Exempt Business in Information Disclosure. These efforts aim to improve the
standardization, transparency, and readability of information disclosure. By integrating operational and Compliance Governance Measures
financial information, we ensure the effective communication of material matters and safeguard the legiti-
mate rights and interests of investors.
To strengthen communication with stakeholders, we regularly publish public reports covering both finan- Internal and External Focus Key areas Closed-loop Management
cial and non-financial information. Every year, we engage external audit firms and auditors through public
We take a holistic approach Cover core aspects such Establish sound compliance
bidding or targeted invitations to ensure the independence and credibility of financial information disclo-
to stakeholder management. as corporate governance, policies and processes,
sure. We have published bilingual environmental, social, and governance (ESG) reports for three consecutive Externally, we focus on policies, anti-commercial bribery, and promptly identify and
years, systematically disclosing our management practices, key progress, and performance results in the regulatory requirements, busi- information security, data correct deviations through
field of sustainability, fully demonstrating our corporate social responsibility. ness partners, and shareholder protection, product quality, review and auditing; establish
concerns, strengthening the environment and safety, smooth feedback channels,
management of related-party and employee rights and encourage employee par-
During the reporting period, there were no instances of publishing correction or supple- transactions and compliance interests, building a com- ticipation in supervision, and
mentary announcements, nor did we face regulatory penalties for information disclosure risks. Internally, we emphasize prehensive compliance p ro m o te the co nti nu o u s
violations. governance structure, employee management framework. optimization of compliance
feedback, and functional de- mechanisms.
partment input to ensure timely
response to concerns.
Key Information Disclosure Performance in 2025
During the reporting period,
we disclosed a total of 137 announcements and related documents (4 regular reports and
Case Compliance Culture Development
Information disclosure rating: B in 2025; A from 2022 to 2024 We place strong emphasis on fostering a culture of compliance. Through regular compliance
Quectel's ESG rating: Wind ESG: AA, Sino-Securities ESG: A, and awarded EcoVadis “Committed” rec- training, the development of compliance manuals, and the establishment of compliance com-
ognition. munication boards, we enhance employees’ awareness and encourages adherence to compli-
ance requirements. In 2025, we conducted compliance-related training totaling 4,395.42 hours,
with 3,570 participants. Training topics included the introduction to the Contract Management
Compliance and Internal Control
System (CMS), IP compliance, and extraterritorial compliance.
Internal Audit
Compliance Operations We continuously improve our internal control system, supervise and regulate the implementation of
internal control, and continuously optimize the internal control framework. We have established internal
At Quectel, we adhere to a compliance governance philosophy of “legality, standardization, rigor, applicabil- policies such as the Internal Control Audit Evaluation Guidelines and the Internal Control Manual (2020
ity, and controllability,” ensuring that all business operations, processes, and documentation fully comply Edition) to clarify the objectives, principles, and overall framework of our internal control. The internal
with applicable domestic and international laws and regulations, industry standards, and internal policies. control systems propose specific control requirements for key areas, with process designs covering all
Our business processes strictly follow established procedures, with reviews focusing on logical rigor and stages from start to finish, and provide detailed operation manuals to offer clear guidance to employees.
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Measures and the Anti-Corruption Standards on Resource Procurement, we regularly conduct an-
Internal Control Management Measures ti-corruption training and awareness education, effectively promoting the implementation of these
systems, strengthening integrity construction, ensuring market order, and safeguarding the Com-
Governance Struc- pany's sustainability.
We have established a governance structure that balances the Board of Directors, and senior management
ture and Checks
to ensure scientific decision-making and effective supervision. The organizational structure is tailored to
and Balances
business characteristics to enhance interdepartmental coordination and internal control constraints.
Mechanism During the reporting period, we did not experience any significant incidents related
to corruption or commercial bribery.
We have established a smooth internal and external information communication mechanism to facilitate
Information Shar-
cross-departmental collaboration and stakeholder engagement. We have improved a multi-level supervision
ing and Supervi-
system that combines internal audit, self-assessment, and external supervision, continuously assessing and
sion
optimizing the effectiveness of internal control. Anti-Fraud and Anti-Corruption Measures
We have improved the financial approval, fund management, and accounting systems to ensure the authen-
Control over Key ticity and completeness of financial information. Procedures for asset acquisition, utilization, and disposal Risk Assess- • We conduct comprehensive and in-depth risk assessments on key business processes such
Processes are standardized to safeguard asset security. Key business processes, including procurement, R&D, produc- as procurement, R&D, production, and sales, and formulate corresponding internal control
ment and
tion, and sales, are subject to standardized management to mitigate operational risks and prevent fraud. measures. We strictly regulate business processes and operational standards to reduce the
Control risks of commercial bribery, corruption and fraud from the source.
Key Performance in 2025
Business • We perform regular and ad hoc audits of business operations, with a focus on key depart-
Ethics Audits ments and high-risk areas, to promptly identify and rectify potential non-compliant practices.
• We did not identify any significant or material deficiencies in internal controls over financial or non-finan-
cial reporting. Employee
• Throughout the year, 656 issues were identified through audits, with a rectification rate of 79%. • Employees are required to sign the Employee Integrity and Honesty Commitment, which
Integrity
standardizes behavior in the workplace and upholds professional integrity and honesty. 100%
Commit- of our employees have signed the Employee Integrity and Honesty Commitment.
Tax Governance
ment
Integrity • To ensure transparency in the procurement process, we require all suppliers to sign the Sup-
Manage- plier Integrity and Honesty Commitment and strictly adhere to it, firmly prohibiting any form of
At Quectel, we strictly comply with applicable tax laws and regulations, including the Law of the People’s Republic
commercial bribery, improper benefit transfer, or other unethical behavior.
of China on the Administration of Tax Collection, the Law of the People’s Republic of China on Enterprise Income Tax, ment of
• Transaction screening is conducted rigorously, including reviews of contracts, pricing ra-
the Interim Regulations of the People’s Republic of China on Value-Added Tax, as well as tax policies in the jurisdic- Business tionality, and payment methods with suppliers, customers, and partners, to detect potential
tions where we operate. We adhere to lawful and compliant tax practices, ensuring the accuracy and timeliness Partners improper interests.
of tax filings. We continuously conduct internal training and external consulting to stay updated on the latest tax
• We have established a multidimensional supervision system that combines internal and ex-
policies. There were no material tax violations throughout the year, effectively maintaining our tax credit and repu-
Multidi- ternal oversight, fully leveraging the roles of the internal audit department and external audi-
tation. Additionally, we strengthen communication with tax authorities, dynamically track policy changes, enhance tors, while also accepting supervision from regulatory authorities.
mensional
the professional capabilities of tax management personnel, and reinforce the foresight and adaptability of tax Our comprehensive job rotation system requires key personnel to rotate regularly to avoid a
Oversight single individual being responsible for particular business, effectively preventing excessive
management. Within a compliant framework, we conduct prudent tax planning and actively leverage applicable
System concentration of power. We have formed a multi-level anti-corruption system for reporting
tax incentives to support improved operational performance.
acceptance and internal auditing.
Business Ethics Disciplinary
Measures
• We have established clear and strict disciplinary measures. Any verified cases of commercial
bribery, corruption, or fraud will result in strict penalties in accordance with laws, regulations,
and internal policies, including termination of employment, legal liability, and internal disclosure
Anti-Fraud and Anti-Corruption
for deterrence.
• In terms of publicity, we communicate policies and
Anti-Bribery System Development
regulations against commercial bribery and embezzle-
ment through various channels such as our intranet
and training courses.
Awareness • We strengthen training and education for employ-
At Quectel, we strictly adhere to laws and regulations such as the Company Law and the Interim Provisions on ees to ensure they fully understand the dangers of
and Training
Prohibiting Commercial Bribery. We have established and improved the management system for preventing commercial bribery and embezzlement, as well as the
commercial bribery, corruption, and fraud. We are committed to upholding integrity in operations and safeguard- Company's zero-tolerance stance. We have estab-
lished a strict accountability system, with no tolerance
ing our corporate reputation. By formulating policies such as the Anti-Corruption and Anti-Fraud Management
for violations.
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Whistleblowing and Reporting Mechanism
Strict Enforcement Against Misconduct and Upholding Integrity We have established multiple public reporting channels to jointly uphold our integrity image and promote
the healthy development of the entire industry, contributing to the creation of a fair and transparent market
environment.
We always maintain a zero-tolerance approach towards commercial bribery, embezzlement,
and fraud. In 2025, two external whistleblowing cases were reported. The Internal Audit Depart-
Reporting Channels
ment conducted prompt investigations, accurately determined the nature of the violations, and
implemented appropriate disciplinary actions. The cases involved abuse of position for personal
gain and were duly resolved. Our firm stance, “strict action upon detection and decisive resolu-
Whistleblower mailbox, email, telephone, our WeChat official ac-
tion,” effectively safeguards a fair competitive market environment and a culture of integrity.
count, QR code, and the online EIP compliance platform.
Whistleblower Protection
Key Anti-Corruption and Anti-Fraud Performance in 2025
• Independent and confidential reporting channels (including email, hotline, and online platforms)
are provided for employees, business partners, and the public to report concerns safely and con-
veniently. Each report is handled promptly by designated personnel, with strict confidentiality to
Total Number of Participants in Anti-Corruption and Anti-Fraud Training 2,834 participants
prevent any adverse impact on the whistleblower’s employment, compensation, or career develop-
ment.
• Any form of retaliation against whistleblowers is strictly prohibited and will be dealt with seriously
Total Number of Management in Anti-Corruption and Anti-Fraud Training 178 participants to ensure protection from threats or reprisals.
Proportion of Directors Participating in Anti-corruption and Anti-fraud
Training
• The Internal Audit Department leads a rapid response mechanism and establishes dedicated in-
vestigation teams to handle reports in a fair, objective, and professional manner. Cases are report-
Total Sessions of Anti-corruption and Anti-fraud Training 26 sessions
ed to the Board in accordance with the Dispute and Case Management Measures. Depending on
severity, disciplinary actions may include performance downgrading, bonus deductions, warnings,
demerits, or termination. Cases involving criminal conduct are referred to judicial authorities.
Employee Pass Rate for Anti-corruption and Anti-fraud Training 100%
Number of Employees Dismissed or Disciplined Due to Corruption 2 cases
Incentives for Reporting
• Whistleblowers who provide valid evidence may receive financial rewards proportionate to the
direct economic losses recovered for the Company. Non-monetary recognition, such as commen-
Number of Business Partners Terminated or Not Renewed Due to Corrup-
tion-related Issues
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Anti-Unfair Competition
At Quectel, we strictly comply with applicable domestic and international laws and regulations, including the Anti-Monopoly Law, the Law Against Unfair Competition, and the Foreign Trade Law. We adhere to the principle of
fair competition. Through policies such as the Code of Business Ethics and Compliance, we standardize our transactions with customers, suppliers, and other partners to ensure openness, fairness, and integrity.
In response to false statements, misleading information, or malicious defamation, we take proactive measures and legal action where necessary to protect our legitimate rights and interests, safeguard our reputation, and
maintain orderly market competition, thereby contributing to greater social value.
Anti-Unfair Competition Risk Control Measures
Case Antitrust and Fair Competition Training
Protection of Trade Prevention of False Anti-Fraud and An-
Export Compliance Agent Management
Secrets Advertising ti-Money Laundering
We provide annual training for all employ-
We sign non-disclo- It is prohibited to We strictly adhere Employees are All agents are ees, particularly those in sales, marketing,
sure agreements make false or mis- to export control required to act with required to sign an
with employees, leading statements regulations, trade integrity and must Integrity Commit- and business functions, on anti-unfair com-
suppliers, and part- regarding product restrictions, and not provide false ment Letter and petition practices. Training topics include
ners, and strictly performance or embargo require- information. Cus- fulfill compliance trade secret protection, interpretation of
prohibit obtaining commercial reputa- ments imposed by tomer onboarding obligations, jointly the Law Against Unfair Competition, and
competitors’ in- tion in advertising the United Nations should involve due fostering a fair and
formation through or promotional and relevant juris- diligence proce- ethical business codes of conduct for employees and busi-
bribery, coercion, activities to ensure dictions to prevent dures to mitigate environment. ness partners, thereby enhancing aware-
theft, or other illegal truthful and trans- compliance risks risks related to ness and preventing anti-competitive
means. parent communica- related to unfair money laundering, behavior across the organization.
tion. competition or mo- terrorist financing,
nopolistic practices. and other high-risk
transactions.
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Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—Sustainability Report (Trial)
Disclosure Reference Chapter
Climate Change Response Climate Change Response
Pollutant Emissions Pollutant and Waste Management
Waste Disposal Pollutant and Waste Management
Safeguarding the Ecological Environment (Our operational sites are not located in key protected areas, and our production and business activities do not have
Ecosystem and Biodiversity Conservation
significant negative impacts on ecosystems and biodiversity.)
Environmental Compliance Management Environmental Compliance Management
Energy Consumption Optimizing Energy Consumption
Water Resource Consumption Water Resource Consumption
Circular Economy Circular Economy
Rural Revitalization Rural Revitalization Initiatives
Social Contribution Social Contribution
Innovation-Driven Development Innovation-Driven Development, Digital and Intelligent Development
Ethics in Science and Technology Ethics in Science and Technology
Supply Chain Security Supply Chain Security
Equal treatment to SMEs Supply Chain Safety (We treat SMEs equally on an equal basis and there were no overdue payments owed to them.)
Safety and Quality of Products and Services Product and Service Quality
Data Security and Customer Privacy Protection Data Security and Privacy Protection
Employees People-Oriented Approach, Occupational Health and Work Safety
Due Diligence Compliance and Internal Control, Materiality Assessment
Stakeholder Communication Materiality Assessment
Anti-Bribery and Anti-Corruption Business Ethics
Anti-Unfair Competition Business Ethics
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GRI Standard 2021 GRI Standard 2021
GRI Standards Disclosure Reference Chapter GRI Standards Disclosure Reference Chapter
Compliance and Internal Control;
GRI 2: General Disclosures 2-24 Embedding policy commitments
Supply Chain Security
Quectel: Empowering a Connected People-Oriented Approach; Business
World with Ambitions Ethics
Entities included in the organization’s sustaina- Mechanisms for seeking advice and raising con- People-Oriented Approach; Business
bility reporting cerns Ethics
Improving Corporate Governance;
ment
Activities, value chain and other business rela- Quectel: Empowering a Connected
tionships World with Ambitions 2-29 Approach to stakeholder engagement Materiality Assessment
GRI 3: Material Topics
Sustainability Governance Framework;
Improving Corporate Governance 3-1 Process to determine material topics Materiality Assessment
Nomination and selection of the highest gov-
ernance body 3-2 List of material topics Materiality Assessment
Role of the highest governance body in over- Sustainability Governance Framework;
seeing the management of impacts Sustainability Management Mechanism 201: Economic Performance
Delegation of responsibility for managing im- Sustainability Governance Framework;
pacts Sustainability Management Mechanism 201-1 Direct economic value generated and distributed Refer to Annual Report
Role of the highest governance body in sustain- Sustainability Governance Framework;
ability reporting Sustainability Management Mechanism 201-2 Climate Change Response
nities due to climate change
Materiality Assessment; Improving
Corporate Governance 203: Indirect Economic Impacts
Collective knowledge of the highest govern- Sustainability Governance Framework;
ance body Sustainability Management Mechanism 203-1 Infrastructure investments and services supported Refer to Annual Report
Evaluation of the performance of the highest
governance body 203-2 Significant indirect economic impacts
Improving Corporate Governance;
Refer to Annual Report 204: Procurement Practices
Improving Corporate Governance;
Refer to Annual Report 204-1 Proportion of spending on local suppliers Refer to Annual Report
Statement on sustainable development strate-
gy 205: Anti-corruption
policies and procedures Business Ethics
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GRI Standard 2021 GRI Standard 2021
GRI Standards Disclosure Reference Chapter GRI Standards Disclosure Reference Chapter
Confirmed incidents of corruption and actions Compliance and Internal Control; Busi-
taken ness Ethics
Legal actions for anti-competitive behavior,
anti-trust, and monopoly practices
Significant impacts of activities, products and Safeguarding the Ecological Environ-
services on biodiversity ment
Stakeholder engagement and management of
tax-related concerns
Nitrogen oxides (NOx), sulfur oxides (SOx), and
other significant air emissions
Reclaimed products and their packaging mate-
rials
Waste generation and significant waste-related
impacts
Management of significant waste-related im-
pacts
Energy consumption outside of the organiza-
tion
Reductions in energy requirements of products
and services
New suppliers that were screened using envi-
ronmental criteria
Negative environmental impacts in the supply
chain and actions taken
Management of water discharge-related im-
pacts
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GRI Standard 2021 GRI Standard 2021
GRI Standards Disclosure Reference Chapter GRI Standards Disclosure Reference Chapter
Benefits provided to full-time employees that Operations and suppliers at significant risk for People-Oriented Approach; Supply
are not temporary or part-time employees incidents of child labor Chain Security
Operations and suppliers at significant risk for People-Oriented Approach; Supply
incidents of forced or compulsory labor Chain Security
Occupational health and safety management
system
Hazard identification, risk assessment, and Operations with local community engagement,
incident investigation impact assessments, and development programs
Worker participation, consultation, and commu- New suppliers that were screened using social
nication on occupational health and safety criteria
Worker training on occupational health and Negative social impacts in the supply chain and
safety actions taken
Prevention and mitigation of occupational Assessment of the health and safety impacts of Product and Service Quality; Green and
business relationships Incidents of non-compliance concerning the health
Workers covered by an occupational health and and impact of products and services
safety management system
Requirements for product and service information
and labeling
Incidents of non-compliance concerning product
and service information and labeling
Incidents of non-compliance concerning marketing
Average hours of training per year per employ- communications
ee
Programs for upgrading employee skills and
transition assistance programs Substantiated complaints concerning breaches of Product and Service Quality; Data Secu-
customer privacy and losses of customer data rity and Privacy Protection
People-Oriented Approach; Improving
Corporate Governance
Incidents of discrimination and corrective
actions taken
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