Environmental, Social, and Corporate Governance Report
SG Micro Corp
CONTENTS
Message from 01 About Company Overview 02
the Chairman SGMICRO Social Responsibility 03
Performance Highlights
Awards and Qualifications 03
Corporate Strategy 04
Sustainable Development 05
Management
Scientific Corporate 09 Innovation Research, Development 16
Governance and Innovation
Management and R&D
Risk Management 11 A Closer Look: Green R&D 18
Business Ethics 13 and Innovation
Information Security 14 Strict Quality Control 20
Customer Service 21
Responsible Build a Sustainable 23 Green Environmental 27
Supply Chain Management Systems
Procurement Comes First
Conflict Minerals 25 Resource Management 28
Management and Utilization
Tackling Climate Change 29
People- Recruitment 32 Appendix About This Report 42
Oriented Employee Benefits 33 Key Performance 43
Talent Development 36 Indicators
Together
Health and Safety 39 Key Targets 45
We Thrive
Social Responsibility 40 Glossary 47
Feedback Form 47
Environmental, Social and Governance (ESG) Report
SGMICRO Message from About Scientific Innovation Responsible Green People-
Message from the Chairman
The year 2025 was the one of challenges and by our pursuit of excellence, we continuously increase efficiency, and embed green development principles We are committed to improving operational efficiency
opportunities. Amidst a complex and dynamic market, R&D investment, push the boundaries of technological across all facets of our operations. through lean management practices. By refining
SGMICRO actively navigated these complexities while innovation, and develop more efficient and comprehensive aspects of our governance, including our
strategically capitalizing on emerging opportunities. We Believing that corporate growth and social progress are
energy-saving analog ICs. The company's production corporate structure, sustainable framework, and ethical
remain steadfast in our founding aspiration: to become a fundamentally interconnected, SGMICRO maintains a
lines cover 38 categories and more than 6,800 conduct, we enhance the effectiveness of risk and
leading integrated analog IC enterprise, dedicated to customer-centered approach to delivering
products, which are already widely utilized in a broad compliance management. Reflecting on 2025, SGMICRO
enhancing lives through technological innovation. high-quality, reliable products. This is supported by a
range of markets, such as new energy vehicles, achieved steady optimisation across various fronts,
Technology is a pivotal force driving societal progress, comprehensive quality management system and
photovoltaic energy storage, intelligent manufacturing, including financial strength, team efficiency, and resilience
and each advancement broadens human prospects and responsive customer feedback mechanisms. Externally,
and green household appliances, creating value for our against risks, delivering robust overall performance.
enriches possibilities. We firmly believe that our we have raised environmental standards for our
customers while serving our common goal of energy
continuous pursuit of technological innovation and suppliers, reinforcing a joint commitment to building a Looking ahead, SGMICRO will adopt an even more
conservation and protecting our environment.
breakthroughs will guide our era toward a future that sustainable and responsible supply chain. Internally, responsible stance, collaborating with stakeholders to
We recognize climate change as the defining global fostering a diverse, equitable, and inclusive workforce advance economic, social, and environmental sustainability.
significantly benefits global well-being and the
challenge of our generation. In response, SGMICRO has remains a priority. We consider a supportive workplace In the face of unforeseen challenges and environmental
sustainable development of our planet.
proactively integrated carbon reduction into our core culture that values employee well-being and shifts, SGMICRO's team will continue to contribute with a
Since our inception, we've focused on developing sustainability strategy. We are steadfastly driving development crucial for strengthening cohesion and strong sense of mission, working collaboratively to bring
high-performance, high-quality Integrated Circuit (IC) forward our medium- to long-term goals: a 50% enhancing a sense of belonging across the company. about positive change in the world.
products. This commitment stems from a sincere desire to reduction in carbon emissions per million yuan of Furthermore, SGMICRO actively participates in various
protect our environment through innovation-driven output by 2030, and a 90% reduction by 2050. These social welfare events to raise public awareness of
Zhang Shilong
reduction of energy consumption, and the wish to targets are underpinned by continuous initiatives to sustainable development and social responsibility.
improve the quality of life for future generations. Driven optimize our energy mix, enhance operational Chairman and CEO
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SGMICRO Message from About Scientific Innovation Responsible Green People-
About SGMICRO
SGMICRO specializes in the research, development, and sales of high-performance,
high-quality analog integrated circuits, with the goal of becoming a leading
comprehensive analog IC company. From the very beginning, the company established
Overview
a core operating principle centered on customer needs, focusing on developing and
producing highly reliable and consistent analog IC products through a process of
continuous innovation. SGMICRO is fundamentally driven by an engineer-led culture.
SGMICRO began by specializing in high-performance operational amplifiers and LDOs,
primarily serving industrial applications. The company then strategically broadened its
product portfolio to offer comprehensive signal-chain solutions in analog and Headquartered Listed on the SZSE ChiNext
mixed-signal conditioning, alongside a complete suite of power management solutions.
in Beijing China (stock code 300661) on June 6, 2017
As a fabless analog IC company, SGMICRO has maintained a long-standing partnership
with TSMC since its inception. This collaboration enabled the successful development
of a range of high-precision, low-noise, high-speed operational amplifiers (OpAmps).
By leveraging CMOS process technology to replace traditional bipolar processes,
SGMICRO gained significant market recognition for its technical expertise and achieved As of the end of 2025, 1,835 employees,
a distinct cost advantage. including 1,335 in R&D
Driven by a respect for intellectual property, SGMICRO focuses on independent product
development. Years of sustained research and development have built deep in-house
technical expertise and an impressive portfolio of proprietary products. We back our
innovation with a systematic quality assurance mechanism, ensuring every integrated
circuit (IC) meets rigorous quality benchmarks. Furthermore, all our products strictly
complies with RoHS and other global environmental standards.
SGMICRO prioritizes attention to detail and continuous improvement, striving to offer
our customers the utmost support and seamless service. While steadily expanding its 2025 Revenue (RMB Billion)
industrial client base, the company has also demonstrated a strong adaptability to the
dynamic global market for communication and information-related consumer
electronics. This has honed its stable supply chain management and cost
competitiveness. As a result, we have earned an excellent reputation for delivering
high-quality products with short lead times and large-scale shipments, thereby
securing the respect and trust of our customers.
Since its inception, the company has maintained a stable founding team and low
employee turnover, enabling consistent and rapid business growth. We have been Customers
continuously profitable annually since 2009. The company was successfully listed on
the Shenzhen Stock Exchange on June 6, 2017, trading under the stock code 300661.
SGMICRO aims to be a leading global supplier of analog IC solutions. The company
partners directly with industry-leading manufacturers across diverse sectors, including
factory automation, solar inverters, new energy vehicles, Li-battery formation, white
appliances, 5G wireless base stations, optical fiber modules, servers, office equipment,
machine vision, smartphones, audio systems, VR, game consoles, and smart watches. Products
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SGMICRO Message from About Scientific Innovation Responsible Green People-
Social Responsibility Performance Highlights Awards and Qualifications
Top 10 China IC Brands Outstanding Chinese Automotive
Environmental Performance China Analog IC Automotive Chip Suppliers
Industry Excellence Award National Intellectual Property
Energy?Saving Leadership Award
Demonstration Enterprise
Awarded the CNAS Accredited
Water consumption (m?) Power consumption (kWh)
World Electronics Achievement Laboratory Certificate
Awards "Product of the Year"
Total greenhouse gas emissions (Scope I + II) Unit tCO2e
Social Performance
Number of employees Employee training Average learning hours
coverage rate (%)
R&D Performance
Investment on R&D Patents obtained Newly applied patents
(RMB Billion)
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SGMICRO Message from About Scientific Innovation Responsible Green People-
Corporate Strategy
SGMICRO is committed to achieving its business objectives by creating societal value through innovation-driven, market-oriented strategies. We prioritize strategic planning,
emphasizing robust research and development to address critical technical challenges and continually enhance our existing product portfolio. We are actively advancing
next-generation high-performance analog IC technologies, steadily reinforcing our position within the industry. With a long-term vision of becoming a leading integrated analog IC
provider, SGMICRO aims to contribute to societal progress and improve the quality of life through continuous innovation and technological advancement.
Our Culture and Values
SGMICRO champions a people-oriented philosophy, fostering a culture defined by diligence, innovation, teamwork, and accountability. We are dedicated to cultivating an environment
that is positive, straightforward, trustworthy, confident, inclusive, open-minded, and supportive. We encourage independent thinking and continuous experimentation through open,
direct, and authentic communication. Our aim is for every employee to deeply understand the value of their work, align with team goals, and integrate personal growth with team
advancement and the company's sustainable development. We empower our employees to boldly pursue breakthroughs, embrace challenges, and enhance their professional skills,
ensuring their career development progresses alongside the company's steady growth, enabling them to share in its collective success.
Our company embraces a philosophy of continuous improvement and a flat organizational structure, promoting equality and unhindered communication among colleagues.
We encourage every supervisor to actively participate in resolving critical team issues, serving as a motivator, facilitator, and trainer. Similarly, we empower each team member to
proactively collaborate with colleagues on task implementation, continuously accumulating experience, deepening understanding, optimizing processes, and enhancing efficiency.
This fosters individuals who are experts, challengers, and innovators in their roles. We pay particular attention to fostering internal team vitality and efficiency, emphasizing a
competitive, dynamically optimized resource allocation mechanism built upon synergistic overall goals. Our results-oriented performance evaluation system consistently incentivizes
employees to grow and develop alongside the company for the long term.
The company mandates that all employees conduct themselves in accordance with legal regulations and social ethical standards, ensuring that all activities and decisions align with the
long-term interests of customers, the company, and employees. We prohibit the provision of false or misleading information and strictly adhere to anti-corruption commitments and
anti-commercial bribery regulations in all business operations. SGMICRO practices corporate citizenship across all its operational locations. Our corporate governance mechanisms are
designed to ensure that business policies meet the long-term interests and demands of relevant stakeholders, including government, society, customers, employees, and shareholders.
We are actively committed to fulfilling our social and environmental responsibilities, thereby ensuring the company's sustained long-term development.
People- Diligent and Team Work Responsible
oriented Innovative
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SGMICRO Message from About Scientific Innovation Responsible Green People-
Sustainable Development Management
SGMICRO integrates sustainability principles throughout its technology development and product innovation processes, and has
Stakeholder Communication
established a robust ESG management framework. ESG governance is advanced from the top down, supported by ongoing engagement
and communication with stakeholders. By actively responding to external expectations and continuously enhancing its sustainability
management practices, SGMICRO drives long?term value creation.
We place strong emphasis on the feedback and assessments of our operations and ESG performance from all stakeholders. SGMICRO is
dedicated to building a highly-efficient, transparent communication mechanism, and carries out the identification, evaluation and
ESG Management System analysis of substantive issues through various channels such as shareholders' meetings, customer satisfaction surveys, employee and
management symposiums, websites and WeChat accounts. We proactively respond to expectations and concerns regarding the
Company’s ESG performance, working together with stakeholders to create sustainable value.
We embed sustainability into our top?level planning and have established an ESG management system led by the Board Office, with
close collaboration across business functions and the ESG Work Group. This structure enables systematic and coordinated ESG
governance across the organization.
Stakeholders Recognition Expectation and Demands Communication and Responses
Financial performance/
R&D and innovation/ Board meetings/Disclosure of information/
Investors Investor relations management/ Investor communication
Board structure and governance
ESG management structure
Risk and internal control management/
Product responsibility management/ Official correspondence/
Government/regulators Community charity/ Supervision & inspection/
Environmental management/ Disclosure of information
Occupational health and safety
Board Office
Product responsibility management/
Leads the ESG management system in coordination with R&D and innovation/Industrial exchange Customer service/Technical seminar/
various departments. Customers
and cooperation/Information security Satisfaction survey
and privacy protection/Business ethics
Occupational health and safety/
A democratic communication platform/
ESG
Various Departments Employee Protection of employee rights and interests/
Employee assembly/Employee activities
Employee training and development
Departments such as Human Resources, Operations, Quality,
Internal Control, and Information Technology are responsible
for implementing specific ESG initiatives. Suppliers/ Supply chain management/ Suppliers screening and review/
Service Providers Mutual benefit and progress Suppliers exchange and training
Cooperative
ESG Work Group Organizations (i.e. R&D and innovation/ Industry forum/
NGOs, Scientific Industry win-win relationships Industry-university research cooperation
Coordinates ESG management, communication, and research institutions)
information disclosure, reporting progress and outcomes to
the Board. Community and Community building collaborations/ Disclosure of information/Community activities/
the Public Rural revitalization Exchange and interview
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Management of Substantive Issues
Based on the latest requirements issued by the Shenzhen Stock Exchange while taking into account the expectations of internal and
external stakeholders, as well as factors relating to business scope and sustainable development, we carry out identification, evaluation
and analysis of substantive topics on an ad-hoc basis.
The Process of Identifying Substantive Topics
Identifying Substantive Topics Key Stakeholder Engagement
The Company reviews, consolidates, and updates Assessments are conducted on an ad?hoc basis with key
substantive topics by considering changes in internal and stakeholders to gather insights on topic priority.
external environments, as well as relevant laws,
regulations, and industry standards.
Materiality Analysis Review of Substantive Topics
Based on valid data collected through the assessment The results of the materiality analysis are submitted
process, the Company evaluates the significance and to management for review and confirmation.
prioritization of substantive topics.
Substantive Topics of ESG
Environmental Topics Social Topics Topics of Corporate Governance
Green R&D Product quality Talent development Corporate Business ethics
Tackling climate change control Health and safety governance
Compliance control
Energy conservation and Product R&D and Salary and Board composition
carbon footprint reduction innovation compensation Internal control and
Intellectual Board of supervisors risk management
Water resource utilization Industry-university performance
and management property rights research Information security
Green operation Quality of cooperation Disclosure of and protection
customer service Social responsibility information
Sustainable supply Investor relations
chain management
Employee benefits
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Response to the UN's Sustainable Development Goals (UN SDGs)
UN SDGs Action Corresponding chapter UN SDGs Action Corresponding chapter
Industry,
Good Health Implement annual general and occupational health check-ups innovation and
and well-being
for all employees, with zero cases of occupational illness infrastructure
Research, Development
Enhance technological innovation
Focus on occupational health and safety training Health and Safety
Carry out intelligent transformation and Innovation
Build employee clubs, organize cultural and sports events for
the employees
Quality Reduce
education inequalities
Focus on Employee training
Support education by providing scholarships and teaching Talent Development Prohibit all discrimination of any types Employee Benefits
awards to multiple universities
Gender Sustainable
equality cities and
Care for female staff communities
Research, Development
R&D of semiconductor products to promote the use of clean
Implement a non-discrimination policy and strictly prohibit Employee Benefits
energy and foster sustainable development and Innovation
sexual harassment and misconduct
Clean water Responsible
and sanitation consumption
and production
Environmental Management
Conservation of water resources Resource Management and Responsible emissions management Systems
Improve utilization of water resources Utilization Efficient management of resource Resource Management and
Utilization
Affordable and
clean energy
Peace, justice
and strong
Oppose commercial bribery and unfair competition by
institutions formulating the Integrity and Anti-Corruption Management Business Ethics
Facilitate the photovoltaic industry and promote the
Tackling Climate Change Standards, and require business partners to sign the Integrity Employee Benefits
utilization of solar energy
Commitment Letter, establishing multiple channels to gather
employee feedback
Sustainable Development
Decent work Partnerships Build channels for stakeholder communication
and economic for the goals Management
growth Focus on supply chain construction and carry out technical
Build a Sustainable Supply Chain
Legal hiring and employment promotion Employee Benefits exchanges and training with suppliers
Conflict Minerals Management
Open up ecological cooperation and promote the
Research, Development and
development of a healthy ecosystem in the industry
Innovation
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Science-Based
Governance
SGMICRO is diligently refining its corporate
governance structure and developing a
science-based governance system. We
implement a streamlined, efficient, and
smoothly functioning framework that
adheres to principles of integrity and
compliant management. This approach
aims to effectively protect investor interests
and consistently enhance company value.
Corporate Governance 09
Risk Management 11
Business Ethics 13
Information Security 14
SGMICRO Message from About Scientific Innovation Responsible Green People-
Corporate Governance
Governance Structure Board of Directors
The company strictly complies with all applicable national laws and regulations, and continuously refines and strengthens our corporate governance structure to The company's Board of Directors consists of six members, including two
establish a solid foundation for long?term, steady development. Clear responsibilities are assigned to the Board, executive officers, supervisors, and the independent Directors and one Employee Director. All directors possess
management team, creating a robust mechanism for independent oversight and strong modern corporate governance. This ensures that decisions made adhere extensive experience in corporate management and risk management
to legal regulations while effectively safeguarding the collective interests of our shareholders. control. To improve the rigor and quality of major decisions, directors are
assigned to various committees based on their professional backgrounds
As the time of the report, in accordance with the newly revised company Law of the People's Republic of China and relevant securities regulatory requirements,
and industry expertise, laying a solid foundation for the company's
the company has completed the dissolution of its Supervisory Board and accordingly amended its Articles of Association and related governance policies,
long-term growth.
clarifying the roles and responsibilities of its corporate governance bodies.
At the time of the report, the attendance rate of the
Governance Structure Board members was 100%, with all directors performing
their duties faithfully, honestly, and diligently.
Shareholders' The general meeting of shareholders, which all shareholders are entitled to attend is the ultimate
Meeting governing body of the company.
Board of Directors
Audit Committee SGMICRO places strong emphasis on diversifying our Board of Directors to
Review the company's financial information and disclosure, supervising and evaluating internal and enhance corporate governance effectiveness and improve decision-making
external audit work, and internal controls. quality through a more comprehensive perspective.
Compensation Committee
Establishes performance evaluation criteria and carries out evaluations for directors and senior Professional Industry: 2 Management: 2
Backgrounds
Board of management; devising and reviewing compensation policies and schemes. Legal: 1 Finance: 1
Directors Strategy Committee
Number of board
members 6
Responsible for formulating the company's development strategies and
medium to long-term development plans.
Nomination Committee Male: 2 30-50 yrs old: 2
Responsible for selecting and reviewing candidates for directors and Female: 4
Gender Age
senior management positions and assessing their qualifications.
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Disclosure of Information
The Board of Directors is responsible for overseeing and managing the disclosure of information. The Board Secretary
coordinates and organizes specific activities related to this disclosure, with support from the Securities Affairs Representative.
The company strictly implements our information disclosure policies and prudently enforces insider information confidentiality
and control mechanisms to ensure that all disclosures are truthful, accurate, and complete, thereby safeguarding the legitimate
rights and interests of investors.
We disseminate information through various channels, including CNINFO and media outlets designated by regulatory
authorities, such as China Securities Journal , Shanghai Securities News , Securities Times , and Securities Daily . This ensures all
shareholders have equal access to information.
A
Performance
In 2025, in the Announcement on the Results of the 2024-2025 Annual Information
Disclosure Assessment for Companies Listed on the ChiNext Market released by
Shenzhen Stock Exchange, SGMICRO was granted "A" grade in recognition of our
outstanding disclosure practices.
This is the fourth consecutive year we have been awarded the "A" grade by Company information
Shenzhen Stock Exchange. disclosure results
Investor Relations
The company places strong emphasis on investor relations management and has designated the Board Secretary as the
person responsible for investor relations, ensuring comprehensive coordination of communication and engagement with
investors. We have established a comprehensive investor communication mechanism that includes the release of periodic
reports, organization of research and engagement activities, and dedicated investor hotlines and email channels. Leveraging
digital interaction platforms, we respond promptly to investor concerns, continuously enhance information transparency, and
strengthen investor understanding and confidence in SGMICRO.
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Risk Management
Internal Control Management Risk Management
SGMICRO has a rigorous internal control management mechanism and a
well-defined internal control management policy. The risk management system is
SGMICRO places a high priority on risk management. The company has In 2025, the company strictly adhered to the core 'risk-based thinking'
comprehensively implemented by robust measures that help ensure its effective
operation. established a collaborative 'Three Lines of Defense' framework—spanning our requirements of our quality management system. We established a
Business Units, Risk Management Function, and Audit Committee—to oversee closed-loop, full-process management framework based on an
We continuously refine the internal control system to comply with relevant laws corporate risk. Anchored by our Risk and Opportunity Control Procedure, 'Identify-Assess-Respond-Monitor-Review' cycle. This risk and
and regulations, such as the Company Law of the People's Republic of China, this institutionalized mechanism evaluates potential policy, operational, and opportunity management mechanism spans all operational and
Basic Standard for Enterprise Internal Control, and other internal control
supervision requirements. financial risks by aligning internal controls and strategic planning with administrative processes. Utilizing the PESTEL analysis model as our core
industry-specific characteristics. Through rigorous risk assessments that tool, we systematically identify how changes in the internal and external
The company has established a well?structured internal control management evaluate the type, significance, and probability of each threat, we environments impact our quality objectives, business performance, and
framework with clearly defined roles and responsibilities. Through the Board of implement targeted mitigation strategies to ensure all identified risks are sustainable development.
Directors, the Audit Committee, and the Internal Audit Department, SGMICRO
managed and addressed promptly.
implements internal control measures at multiple levels to ensure compliant
operations and effective risk management, thereby supporting its sustainable and
healthy development.
Three Lines of Defense in Risk Management Risk Management Workflow
Internal Control and Risk Management Structure
First Line of Defense: Business Department
Responsible for establishing, improving, and ensuring the Embed risk control into business processes
Board of effective implementation of internal controls; approving risk ("institutionalization → process?driven → digitalization"); Risk
Directors management strategies, policies, and objectives; and Implement departmental risk response measures and
reviewing the annual risk assessment report and major risk
Assessment
conduct regular self?inspections and reporting.
response plans.
Second Line of Defense: Risk management department PESTEL Dimensions: Severity of impact Risk Acceptance
Oversees the effectiveness of the risk management system, Political / Economic /
Audit Committee coordinates internal and external audit activities, and reviews Develop risk control policies and tools; Likelihood of Risk Reduction
Monitor the execution of the first line of defense and Social / Environmental / occurrence
Under the Board internal control evaluation reports to ensure compliance and Technological / Legal
evaluate the effectiveness of control measures; Risk Avoidance
the accuracy of financial reporting. Detectability
Coordinate risk assessments and follow?up on rectification.
Executes specific responsibilities, implements Board
Management resolutions, and coordinates risk response measures. Third Line of Defense: Audit Committee
Risk Risk
Conducts risk identification, assessment, and follow?up on Independently audit the effectiveness of internal controls Identification Response
Internal Audit
rectification. Oversees the performance of the three lines of (including fraud, information security, compliance, etc.);
Department
defense and reports regularly to the Audit Committee. Formulate audit plans based on a risk?oriented approach;
Promote closed?loop audit rectification and report to the
The company conducts an annual self?assessment of the effectiveness of our
Board of Directors and management.
internal controls and issues an annual internal control evaluation report. A
third?party accounting firm is hired to audit the report. At the time of the report,
the company maintains effective internal controls in all material aspects in
accordance with the Basic Standards for Enterprise Internal Control and relevant
regulatory requirements.
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Types of Risk Identification
External Factors
Regulatory requirements (changes in laws and
regulations/industry standards)
Requirements of relevant parties (supervision level of regulatory
authorities/requirements of relevant parties)
Technology (new products/new technologies)
Politic (supply chain/exchange rates/trade compliance)
Resources (intensified market competition/macroeconomic
environment and industry fluctuations/IT software)
Internal Factors
Financial status (asset-liability ratio/inventory turnover
ratio/accounts receivable)
Company management (management process/after-sales
service/document control/data information security
management/authority)
Resources (company operating environment/infrastructure
management/performance appraisal/personnel turnover)
Looking ahead, we will continue to refine our quantitative risk?assessment
models to improve sensitivity in identifying high?impact, low?probability risks.
We will also strengthen mechanisms for cross?departmental risk?information
sharing and enhance coordination across functions to respond more effectively
to emerging risks. Requirements for risk?and?opportunity management will be
further embedded into operational procedures across all business units,
helping deepen company?wide risk awareness and providing solid support for
achieving SGMICRO's annual operational objectives.
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Business Ethics
SGMICRO is guided by the principles of authenticity, compliance, resilience, and sustainability, with authentic data and legally compliant operations. We crack
down on commercial bribery and oppose unfair competition. We comply with all relevant laws and regulations to maintain a fair, equitable, and competitively
open commercial environment. Our products and services of superior quality combined with an excellent reputation, enable SGMICRO to continue securing new
business opportunities.
Whistleblowing and Protection
Integrity and Honesty Mechanism
In accordance with strict integrity guidelines, we have developed policies such as the Integrity and Anti-Corruption Management Standards, and are committed SGMICRO consistently clarifies requirements for standardized operations,
to strict compliance with applicable anti-bribery and anti-corruption laws and regulations. We prohibit any form of bribery, corruption, embezzlement, extortion, anti-corruption, and fair trade, creating an internal environment of strong
misappropriation of funds, or any related conduct to ensure the smooth operation of the company. All employees are required to refrain from promising, business ethics. We rigorously implement integrity and compliance
offering, giving, granting, or accepting any improper and illicit benefits. management into all business activities. Employees and partners who
discover any illegal or non-compliant behavior with the company's business
Multi?Dimensional Integrity and Anti?Corruption Initiatives ethical standards can promptly lodge complaints through dedicated
channels. SGMICRO protects whistleblowers, ensures their identities remain
confidential, and maintains channels and policies of open communication.
Establishment of Supervisory Management Institutions Annual Integrity and Honesty Management Audit Employees and partners can express their compliance concerns through
The Audit Committee, established under the Board of Directors, Relevant departments of the company organize annual integrity and dedicated channels, whether anonymously or identified. Complaints are
adheres to relevant laws and regulations while overseeing business honesty management audits, encompassing all employees and investigated and any retaliatory actions or threats against whistleblowers
ethics and corruption issues. It promotes a system of integrity, business partners who have direct business dealings with SGMICRO. are strictly prohibited. The company will take appropriate disciplinary action
enhances SGMICRO's capacity for legal governance, and standardizes The Annual Integrity and Honesty Management Audit Report is against any violation, including but not limited to, termination of
the management of business ethics in the company. released following a comprehensive evaluation and analysis process. employment contracts and pursuing legal liability.
We require all marketing and procurement personnel to sign the
Integrity Commitment Letter, strictly adhering to prohibited conduct Email: informer@sg-micro.com
Promotion of Integrity and Honesty Management regulations on integrity, including: prohibition on soliciting or
accepting cash, securities, payment instruments, or other valuable
Every year, SGMICRO organizes activities to promote integrity and
items in any form from business partners, or having them pay for any Dedicated phone line: 010-88825983
honesty management concepts to business partners who have direct
goods or services; prohibition on directly or indirectly offering,
business dealings with the company, ensuring that they comply with
promising, or providing any payment or item of value to government Mailing address: F11, Building D,
the integrity and honesty management standards and relevant
officials/employees, political candidates, or employees/officials of
regulations. Business partners of the company all have signed the No. 87, North Third Ring Road,
international organizations to obtain or retain business or any
Commitment to Integrity and Honesty.
improper advantage. Haidian District, Beijing, China
Integrity and Honesty Management Training
We conduct regular integrity and compliance management training for employees, reinforcing their understanding of business conduct and principles.
During orientation, new employees gain a deep understanding of the company's Integrity and Honesty Management Standards, which apply to all
employees of SGMICRO and its direct and indirect subsidiaries and branches.
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Information Security
Our goal is to build a safe and stable corporate network environment, proactively apply advanced security protection technologies, adapt disciplined management approaches
to build a rigorous and efficient Information Security Management System (ISMS). Simultaneously, we actively promote the establishment and improvement of risk assessment 2025 Annual Performance
mechanisms, accurately predict potential security risks, and take efficient preventive measures to ensure the long-term security of our corporate information systems.
Conducted cybersecurity awareness training for all
employees, achieving 100% coverage. 100%
Management systems Organized cybersecurity emergency response drills
simulating scenarios such as "system outages" and
"cyberattacks," with a 100% completion rate for all response actions.
The company strictly complies with relevant national laws and regulations of China,
Endpoint and Security Management
such as the Cyber security Law , the Data Security Law , and the Personal Information
Protection Law , using the ISO/IEC 27001 Information Security Management System We implement access controls for external and mobile storage devices,
as the policy benchmark. Based on industry characteristics and our operational needs, restrictions on outbound email, application control, and comprehensive Case Information Security Training
we have established an Information Security Management Committee and dedicated software compliance management.
working groups to develop systematic management policies and build a comprehensive We implement access control for critical areas, alongside surveillance and
information security management System (ISMS). Through ongoing information?security IoT device monitoring, to enable automated security incident alerts. In 2025, the company conducted multiple rounds of specialized
initiatives, we continue to enhance our cybersecurity defense system. training on information security, covering detailed interpretations of
Security Policy Updates relevant policies, practical case studies, and common issues. These
In 2025, we refined our internal policies, particularly those related to data efforts continuously strengthened employees' awareness of
protection, by aligning them with the latest laws and regulations and adapting them Driven by evolving business needs and technological progress, we keep information security and enhanced their practical capabilities in data
to our operational context. These updates ensure full coverage of business?related enhancing our security protection policies and revising our cybersecurity protection, thereby building a solid defense for the company's
data across the company. We defined clear security requirements for each stage of strategies and processes to ensure full alignment with current security
standards and applicable regulations. information security. In addition, the company launched an
data handling, ensuring that policy execution remains aligned with business information security examination system to assess training outcomes,
development needs and security requirements. achieving a pass rate of 98.5%.
Emergency Response Drills and Vulnerability Scanning
By developing innovative security solutions, we further strengthen our cybersecurity
safeguards and have established a multi?layered protection system that spans We regularly conduct cybersecurity emergency drills to validate the
hardware and software, perimeter defenses and internal controls; thus providing effectiveness of incident response plans, enhancing our IT team's ability to
strong support for stable and secure business operations. At the time of this report,
react and collaborate during incidents.
Additionally, we perform routine security vulnerability scans of our systems
Data Protection
the company has seen no information security incidents.
to promptly identify and remediate potential system security risks.
To address increasingly complex challenges in information and data security, the
Information Security Protection Measures Network Isolation and Monitoring company has established a dual?driven protection mechanism integrating both
We maintain strict segregation between our office and R&D networks, with institutional and technological safeguards. We rigorously comply with national
Awareness and Training VPN access and robust controls and auditing for all data transmissions. laws, regulations, and industry standards to ensure the secure storage and use of
We conduct real-time monitoring of our network systems and enable information, protect corporate assets from unauthorized access or attacks, and
We regularly send out reminders to help employees prevent phishing automated alerts to ensure that any faults or anomalies are promptly detected. minimize compliance and operational risks.
emails, enhancing their cybersecurity awareness and response capabilities.
We place strong emphasis on customer data security by always improving internal
We provide cybersecurity awareness training for all employees through
online lectures and video tutorials. Supervision and Audit management measures, strengthening customer information protection
We conduct regular audits of data management practices across all mechanisms, and standardizing the compliant access, use, and storage of
Additionally, our IT team receives specialized security training and regular departments to ensure data compliance and security. customer data. Furthermore, the company conducts periodic information security
updates, helping employees at all levels build stronger cybersecurity awareness training for all employees to ensure strict adherence to relevant legal
awareness and improve their ability to respond to security risks. We engage third-party auditors to verify the effectiveness of our IT system
and resource security controls. and regulatory requirements.
Environmental, Social and Governance (ESG) Report < 14 >
Innovation
and R&D
SGMICRO is dedicated to the research and
development of advanced analog chips.
Through iterative innovation, we deliver a
comprehensive portfolio of
high-performance, high-quality analog
integrated circuits. Our commitment to
superior product engineering and efficient
customer service has established SGMICRO
as a trusted partner for leading global
enterprises.
Research, Development and Innovation 16
A Closer Look: Green R&D and Innovation 18
Strict Quality Control 20
Customer Service 21
SGMICRO Message from About Scientific Innovation Responsible Green People-
Research, Development and Innovation
Research and development (R&D) and innovation form the cornerstone of our company's sustained growth. We view product R&D capabilities as our most critical
core competency and have established a comprehensive R&D management system and processes. Since our inception, we have consistently pursued an independent,
innovation-driven technical development strategy. With technical innovation at our core, we continuously increase R&D investment, accumulating numerous critical
core technologies. Concurrently, based on market trends, customer demands, and predictions of future technological shifts, we proactively conduct technological
research and product planning. This allows us to anticipate changes in end-user demand, strategically position ourselves for growth opportunities, and promptly
deliver competitive products to our target markets. While ensuring the application of existing product technologies, we actively pursue next-generation innovations.
To manage the R&D projects efficiently, we are continuously enhancing our R&D
Investment on R&D management system through the optimization and upgrade of our specialized
R&D management software. In advancing its innovation and R&D management
framework, the company pursues independent innovation and steadily increases
The ongoing R&D investment continues to increase and has resulted in the rapid R&D investment to build a strong foundation of core technologies. By
expansion of our technical team and significantly bolstered our technological strengthening efficient communication channels with customers, SGMICRO gains
capabilities. We take pride in independently developing a wide range of core a deeper understanding of their evolving needs and adjusts our market
technologies. Leveraging these cutting-edge technologies, SGMICRO continues strategies accordingly, ensuring the delivery of competitive products and
to expand our product portfolio in response to market demand, successfully solutions. We are also cultivating a forward?looking pipeline of new
introducing a series of products characterized by diversity, completeness, and technologies and products to reinforce our long?term competitiveness.
refined segmentation.
In fiscal year 2025, our R&D investment totaled 1.045 billion RMB, representing a
R&D investment compared to the previous year. This significant investment has
yielded strong results, as evidenced by our expanded portfolio of nearly 900 part
numbers. This demonstrates the effectiveness of our R&D efforts in broadening The construction and cultivation of our talent pool have always been a strategic
our product matrix. priority at the company. We are dedicated to nurturing outstanding
professionals who resonate with our corporate culture and core values. We
Historical Sales-Ready Product Number
team continued to expand, with 1,335 R&D personnel, accounting for 72.75% of
Investment in R&D (in 10,000 RMB)
which comprise 56.25% of the total R&D personnel, providing solid technical
Increase from Last Year's Number 151
Increase from Last Year's Number 12.75
Environmental, Social and Governance (ESG) Report < 16 >
SGMICRO Message from About Scientific Innovation Responsible Green People-
Intellectual Property System
Numbers of Intellectual Property Rights 2023-2025
The Company strictly abides by relevant laws, regulations and standards including the Patent Law of the People's Republic of China, the Implementing Rules of the Patent Law of the
People's Republic of China, the Trademark Law of the People's Republic of China and the Specifications for Enterprise Intellectual Property Management. It has established a sound (Disclosure Items)
intellectual property management system to provide strong support for sustainable innovation and market competitiveness. During the reporting period, the Company continuously
strengthened its IP management system to guard against intellectual property risks. Total Number of Granted Patents
Total Number of Registered IC Layout Design Registration Certificates
Protection of Intellectual Property 600 588
SGMICRO prioritizes the protection of its intellectual property in accordance with its Awareness and Capacity Enhancement: 500
management philosophy. The company follows the Intellectual Property Management Launch Intellectual Property Training
Work Manual, which is customized to fit its specific characteristics and the integrated
circuit industry. These principles ensure that intellectual property matters are handled Popularize Company-wide Awareness: Elevate all employees' awareness of IP 400
Amount
properly, effectively, systematically, accurately, and promptly. The guidelines set protection through regular training sessions. 340
expectations to standardize the intellectual property workflow and enhance 300
Improve Practical Application Capabilities: Deepen employees’ understanding
company-wide awareness of intellectual property protection. As of the report, the
of intellectual property knowledge and enhance their practical application 259
company continues to advance the application and strategic organization of intellectual 229
capabilities. 200
property rights, focusing on building an intellectual property portfolio centered around
patents covering a wide array of technologies. At the time of this report, the company
continued to advance the application and strategic development of intellectual property 100
rights, building an intellectual property portfolio primarily centered on patents.
Business Cooperation Standardization: Clarify Ownership
Rights and Confidentiality Obligations
Protection of Intellectual Property Sign Confidentiality Agreements: Sign confidentiality agreements with relevant
parties prior to business cooperation initiation to clarify the confidentiality 2023 2024 2025
obligations of all parties.
Risk Prevention in Advance: Strengthen
Inquiry and Early Warning Mechanisms Define Ownership Rights: Clearly stipulate the ownership and right to use
intellectual property in contracts to prevent subsequent disputes arising from
Strengthen Patent Early Warning: Establish a dynamic monitoring mechanism, unclear ownership.
Disclosure Total Number of Total Number of Registered
conduct patent intelligence analysis on core industrial technologies, and
Items IC Layout Design
identify potential infringement risks in advance. Granted Patents
Registration Certificates
Improve IP Search Procedures: Conduct rigorous background checks on In 2025, SGMICRO comprehensively upgraded our patent strategy, continued to refine
trademarks, patents and other intellectual property rights prior to R&D and the internal IP management system, and organized patent strategy upgrade training to
product launch to avoid infringement risks. strengthen company?wide IP protection awareness and enhance our core
competitiveness. These incentive schemes are regularly updated, emphasizing
innovation the driving force behind our ongoing development. Our patent portfolio 2024 370 340
Intellectual Property Strategy and Deployment: continues to expand. Our patent portfolio continues to expand. At the time of the
Defining Protection Scope and Approach report, the number of patents held by the company further increased. 2025 588 401
Precisely Select Protection Strategies: Adopt different forms of protection
including invention patents, utility model patents, design patents and trade
secrets flexibly according to technical characteristics and commercial value.
Effectively Protect Innovation Achievements: Reasonably define the protection
scope of patent claims to ensure core innovations receive solid and sufficient
legal protection.
Environmental, Social and Governance (ESG) Report < 17 >
SGMICRO Message from About Scientific Innovation Responsible Green People-
A Closer Look: Green R&D and Opportunities
Green R&D and Innovation SGMICRO integrates sustainable development into its innovation practices, actively promoting the research and development of green, low-carbon technologies to create
energy-efficient products. Concurrently, the company is seizing new opportunities in green applications to provide customers with solutions for efficient energy utilization,
As an analog integrated circuit company committed to continuous improvement, meeting the growing demand for intelligent living and environmental sustainability.
green research and development isn't just a core driver of our technological
innovation; it's also our unwavering commitment and contribution to building a
greener planet. As the company expands, our products are increasingly integrated
SGMICRO has incorporated energy consumption reduction design principles in its analog IC design across
into a wide range of industrial and consumer electronics applications. From the various categories.
initial stages of product development, we strive to embed environmental Efficiency, low power consumption, and miniaturization are important trends in IC development, particularly within the analog chip domain. These are also SGMICRO's
protection principles into every process. Each product we create reflects our deep areas of expertise. Through years of targeted independent research and development, SGMICRO has developed technologies, intellectual property, and products in areas
consideration for environmental sustainability, aiming to minimize resource including chip power reduction, enhanced power conversion efficiency, process optimization, and chip size reduction. These include ultra-low power operational
consumption and waste. This approach demonstrates our active response to the amplifiers, comparators, low-dropout regulators (LDO), Buck-Boost DC/DC converters, power solutions for AMOLED displays, integrated power modules. These products
industry's trend toward green and low-carbon development.
utilize innovative power conversion circuit architectures, low-power circuit designs, smart dynamic power control technologies, and more compact packaging technologies
We have always adhered to the philosophy of "prioritizing energy conservation, that significantly enhance power conversion efficiency while reducing energy consumption and raw material usage. The application of these advanced technologies
emission reduction, and environmentally sustainable development" in all our R&D strengthens the market competitiveness of the company's products and provides customers with lower-power, more energy-efficient, and environmentally friendly
activities. We uphold our commitment to green R&D throughout the entire lifecycle solutions. These solutions help extend standby time and overall battery life for smart devices, contributing to commercial performance and environmental impact.
of each chip, from definition and design to manufacturing. In the initial product
definition phase, we focus on parameters such as low energy consumption, Our products are extensively employed in energy conservation and environmental protection, facilitating
compact size, and simplified processes. During the circuit design stage, we
emphasize reducing overall chip power consumption across various states,
the across-the-board adoption and rapid development of various green and energy-efficient products.
minimizing chip area, decreasing chip layer count, and enhancing product reliability Global climate change presents both challenges and opportunities. As we address this challenge, humanity is compelled to explore and adopt low-carbon and sustainable
and lifespan. For the chip manufacturing process, we maintain close development models. Emerging sectors such as clean energy and energy-saving environmental protection offer unprecedented development opportunities. There is a new
communication with our foundry partners to ensure compliance in raw material impetus for economic growth as well as effective means to address environmental issues. Semiconductor technology, as the cornerstone of modern society, plays a crucial
selection and to monitor the environmental impact of production. These measures role in driving the development of green technology. In response to these opportunities, the company began laying out innovative products for applications in the new
enable our products to achieve optimal energy conservation and emission energy and green energy sectors many years ago. Collaborating with relevant end-product manufacturers, we have launched multiple next-generation analog IC products
reduction, simultaneously conserving raw materials and reducing wastewater, gas, for energy conservation and environmental protection in various applications, such as photovoltaic energy storage, lithium battery manufacturing and management,
and solid waste emissions during production. Concurrently, the superior automation in applications, new energy vehicles, and third-generation semiconductors. These efforts contribute to the widespread adoption and rapid development of
performance, quality, and market alignment of our products contribute to a longer various green and energy-efficient products, providing a more environmentally friendly and efficient experience for our lives. Furthermore, they contribute to improving the
product lifecycle. This, in turn, extends the lifespan of our customers' end products, Earth's environment and human sustainable development.
consequently reducing electronic waste from devices, as well as packaging waste,
thereby alleviating environmental pressures.
Case Ultra?Low?Power Buck Converter Case Highly Integrated, High?Frequency Buck Power Module
Application of SGMICRO has introduced an ultra-low-power DC/DC buck The company has launched a highly integrated, high-frequency buck power module
core technologies converter designed for battery-powered IoT devices housed in a compact, eco-friendly 10-pin EMSIP package (2 mm × 2.5 mm × 1.27
requiring minimal standby power. The converter features mm). By combining a synchronous buck converter and an inductor into a single
Green product an ultra-low quiescent current of just 60nA and a module, this design minimizes external components and reduces resource
portfolio light-load efficiency exceeding 80%, ensuring a consumption. For maximum efficiency, the module features a Power Saving Mode
Environmental long-lasting and stable power supply. To support product (PSM) optimized for light loads, drawing a typical quiescent current of just 5.7 μA.
benefits in miniaturization, it is housed in a compact, eco-friendly This ultra-low power consumption significantly extends the standby time of
application WLCSP (0.89 × 1.19-6B) package and requires only four battery-powered devices. Compact, reliable, and easy to integrate, this module is an
Product manufacturing Long-life cycle
external components. This highly efficient design
ultimately helps reduce carbon footprints.
ideal, energy-efficient solution for space-constrained buck applications.
application
Environmental, Social and Governance (ESG) Report < 18 >
SGMICRO Message from About Scientific Innovation Responsible Green People-
Industrial Exchange and Cooperation
SGMICRO has always adhered to an open, collaborative, and mutually beneficial development philosophy, actively contributing to the
growth of the industry ecosystem. Beyond active participation in industry exhibitions and events, we drive in-depth participation in
industry associations and high-level conferences. SGMICRO has led or contributed to the development of multiple national and
international standards. Through these efforts, the company is committed to building channels for information exchange across
enterprises and working with partners to jointly advance the prosperity and development of the industry.
Industry Collaborations (some):
Serial
Industry Association/Union Title
Number
China Automotive Chip Industry
Director
Environmental, Social and Governance (ESG) Report < 19 >
SGMICRO Message from About Scientific Innovation Responsible Green People-
Strict Quality Control
SGMICRO offers high-performance, quality analog IC products. A stringent quality assurance system meets top industry standards, ensuring each product is thoroughly tested for
consistency and reliability. We foster a "zero-defect" quality culture, guiding all employees to embrace it as a conscientious daily practice. SGMICRO implements our quality policy
across all stages of the supply chain, establishing rigorous product quality standards and management processes to ensure high production efficiency and reliable product
performance. By placing customer needs at the forefront, the company continuously enhances service quality.
Advanced Technology Reliable Quality
By leveraging globally leading technologies and continuous Strive to create reliable and consistent products, with
development efforts, we have expanded our market share a focus on achieving the highest level of quality and
with advanced, high-performance products, thereby reliability.
bolstering the overall strength of our company. Quality
Customer Satisfaction
Policy Continuous Improvement
Maintaining consistent high product quality is essential for The quality management system, refined over time,
ensuring customer satisfaction, while simultaneously ensures continuous product quality improvements—a
striving for continuous improvement. foundational element of our growth.
Quality System
We have implemented a comprehensive quality assurance policy in accordance with the Product Quality Law of the People's Republic of China and other relevant specifications,
adhering to the highest industry standards. Our guiding principles encompass "advanced technology, reliable quality, customer satisfaction, and continuous improvement". Rigorous
quality assessments are conducted on every product to ensure its quality and reliability. We preferentially select wafer foundries and assembly & test factories with the highest
reliability and yield rates. Additionally, every new product undergoes stringent testing against the highest standards to uphold the utmost quality and reliability, allowing us to
guarantee our product quality while continually expanding our product lines.
Strict product quality standards and quality management processes are established to oversee product design, production, and sales comprehensively. Rigorous tests are carried out
before product warehousing and shipment. Moreover, the company diligently monitors crucial elements such as design standards, manufacturing methods, production workflows, and
testing protocols to consistently enhance product quality and bolster resilience against external factors. This approach ensures both high production efficiency and consistent product
quality.
In 2025, we further embedded quality management into our strategic planning, aligning closely with high?quality development priorities. We advanced both quality management and
supply?chain resilience. Guided by the differentiated needs of customers across various application sectors, we established a full?process service system that strengthens our
end?to?end quality assurance capabilities. At the time of the report, our management systems achieved several important milestones. We maintained the validity of our ISO 26262
certification in automotive functional safety, expanded our testing capabilities with ISO/IEC 17025 laboratory accreditation, and obtained the IATF 16949 Letter of Conformance for
automotive supply?chain quality management. In addition, we completed the expansion and upgrade of our ISO 9001 Quality Management and ISO 14001 Environmental
Management System, bringing more subsidiaries under unified system coverage. These enhancements have resulted in an internationalized compliance framework spanning four key
dimensions: quality control, environmental management, laboratory testing, and functional safety, providing the institutional foundation and management assurance for the company's
long?term stability and continuous operational improvement.
Environmental, Social and Governance (ESG) Report < 20 >
SGMICRO Message from About Scientific Innovation Responsible Green People-
Customer Service
The company upholds a customer?first philosophy, prioritizing the fulfillment of customer needs, enhancing service quality, and striving
to deliver high?quality products and comprehensive solutions. Our distribution strategy primarily leverages product distribution
channels, complemented by direct sales. This decision aligns with industry standards and SGMICRO's unique circumstances. By adopting
Performance
this approach, we effectively reach a broad spectrum of end customers, enhance sales channel efficiency, expand our customer base,
and promote our products.
To enhance customer satisfaction, we have established a technical support team composed of senior experts to provide comprehensive At the time of the report, the customer
responses to customers’ diverse needs. SGMICRO upholds a communication philosophy rooted in integrity, transparency, and efficiency,
ensuring rapid response and close follow?up to customer quality requirements while providing accurate and direct technical support satisfaction score reached
and solutions.
To further enhance the effectiveness of customer feedback handling, the company continues to improve our Customer Feedback
Handling Specification , clearly defining the primary responsible party for each customer issue and standardizing procedures, response
measures, timelines, escalation mechanisms, and closed?loop management requirements. These measures ensure that every piece of
customer feedback receives timely, professional, and efficient resolution. The company also conducts ongoing customer satisfaction
surveys and, in response to customer suggestions for improvement, proactively engages in communication, responds promptly, and
puts plans into action.
Environmental, Social and Governance (ESG) Report < 21 >
Responsible
Procurement
SGMICRO's powerful and reliable supply chain
is a key competitive advantage. We maintain
close cooperation with our suppliers, having
established a standardized process for
supplier onboarding and evaluation. Our
categorized supplier management approach
optimizes oversight, reduces costs, and
enhances supplier value. Adhering to our
sustainable development philosophy, we
integrate critical factors such as product
quality management, environmental
protection, and social responsibility into our
supplier evaluation system. SGMICRO is firmly
committed to avoiding conflict minerals and
actively promotes sustainable development
throughout the entire industry supply chain.
Build a Sustainable Supply Chain 23
Conflict Minerals Management 25
SGMICRO Message from About Scientific Innovation Responsible Green People-
Build a Sustainable Supply Chain Integrity Commitment Environmental Management
Letter Complaints
Sustainable Supply Chain
Our company regularly reviews and updates its risk and opportunity assessment criteria. We conduct various risk assessments for our
suppliers, developing corresponding mitigation strategies. Furthermore, through our business continuity management protocols, we
clearly define our business continuity management structure and policies. Review of
Suppliers' Social
To ensure uninterrupted supply, we've established and refined a business continuity assurance system, regularly assessing risks of
operational disruption. Our proactive measures to prevent supply chain disruptions include: introducing secondary suppliers for Responsibilities
production-related partners based on process types, mandating suppliers to establish business continuity plans, and stipulating safety
stock requirements for materials.
Supplier Management Environment and Quality Third-party Test Reports
Related Certifications (RoHS2.0, HF)
Our supplier management process covers risk assessment, onboarding reviews, agreement signing, regular evaluations, ad?hoc audits,
and annual audits.
Risk We evaluate new suppliers across multiple dimensions, drawing upon international standards such as ISO9001, Review of Suppliers' Social Responsibilities
Assessment IATF16949, and ISO14001. This assessment leverages management systems like ISO14001, QC080000, and ISO45001.
At the time of the report, the company found no significant illegal or non-compliant activities within its procurement processes. Our
suppliers maintained ecological, social, and quality certifications as listed below:
Onboarding Critically, during the initial onboarding phase and on-site audits of new suppliers, we consistently include environmental and
Reviews social responsibility criteria. These factors directly influence the supplier's score and overall evaluation outcome.
Percentage
We sign codes of conduct and other relevant agreements with suppliers, requiring them to carry out thorough due
Agreement diligence on their supply chains to ensure full compliance with laws and regulations during their business with our
Category Certification of certified Performance:
suppliers
Signing company. The areas included in due diligence are, but not limited to, labor rights, health and safety, environment and
hazardous substances, ethical standards, business continuity, and information security. ISO 14001 Environmental • The percentage of new suppliers that were
Management Systems
Regular Environment
We conduct regular performance evaluations that include environmental and social?responsibility criteria, issue QC 080000 Hazardous Substance
Evaluations warnings to low?scoring suppliers, and require corrective actions to be completed within defined timelines. Process Management System
screened based on social criteria: 100%
Suppliers commits to ensuring that all business transactions are transparent and accurately reflected in its accounting • The number of suppliers identified as having
ISO 45001 Occupational Health
Ad?hoc Audits books and records, and to guaranteeing the transparency, impartiality, and fairness of the procurement process. We Society 100% actual or potential significant negative social
continuously optimize our procedures, conducting periodic supplier audits to ensure compliance with integrity requirements. and Safety Management System
impacts: 0
SGMICRO conducts annual audits of suppliers to promote social responsibility, emphasizing transparency and • The number of suppliers identified as having
integrity. We require suppliers to comply with legal standards, uphold ethical business conduct, follow human rights ISO 9001 Quality Management
Annual Audits 100% actual or potential significant negative
regulations, and avoid forced or child labor. Suppliers must also avoid conflict minerals and meet environmental Quality IATF 16949 Automotive Quality
Management System 100% environmental impacts: 0
standards. Suppliers that repeatedly fail to meet our standards are removed from our approved supplier list.
Environmental, Social and Governance (ESG) Report < 23 >
SGMICRO Message from About Scientific Innovation Responsible Green People-
Green Sourcing
SGMICRO actively upholds its commitment to a green supply chain. Across all stages, from raw material selection to wafer manufacturing
and packaging & testing, we rigorously require our supply chain partners to adhere to stringent green environmental standards. They
must provide the latest third-party test reports for raw materials and products, ensuring full compliance with environmental protection RoHS Compliance
laws, regulations, and certification standards. This minimizes the environmental impact throughout the chip's full life cycle in production, All our products strictly comply with the Restriction of Hazardous Substances (RoHS) Directive . We conduct
usage, and post-disposal phases. full?process investigations, verification, and testing to ensure compliance with regulatory timelines and to
The company actively encourages and supports its suppliers in implementing sustainable practices. We prioritize suppliers with meet customer requirements.
commitments to low-carbon operation and low emissions, minimizing environmental and climate impact with partners upstream and
downstream.
In our product packaging and information?delivery processes, we put green and low?carbon principles into practice: We prioritize
biodegradable and recyclable materials for external packaging. We reduce resource consumption by digitizing product documentation
through barcode scanning and online transmission. We label both internal and external product components with environmental REACH Compliance
markings to ensure compliance with international standards such as RoHS and REACH. In accordance with EU REACH regulations, we conduct comprehensive substance reviews to confirm that
our products contain no volatile or intentionally released substances. For non?EU?exported
chemical?related products, the concentration of all Substances of Very High Concern (SVHCs) remains
below 0.1%, ensuring full compliance with EU regulatory requirements.
Environmental Requirements for Packagings
We strictly comply with the Packaging and Packaging Waste Directive (94/62/EC) and its amendment
(2004/12/EC), ensuring that the total concentration of heavy metals, including lead (Pb), cadmium (Cd),
mercury (Hg), and hexavalent chromium (Cr6+), does not exceed 100 ppm in packaging materials.
Restricted Substances Management
The company confirms, after thorough investigation of our supply chain, that plastic materials containing
red phosphorus or antimony trioxide flame retardants are not used. Furthermore, all products and raw
materials do not contain perfluorooctane sulfonate (PFOS), perfluorooctanoic acid (PFOA), C9-C21
perfluorocarboxylic acids (PFCA), perfluorohexanoic acid (PFHxA), and perfluorohexyl sulfonic acid (PFHxS)
substances.
Halogen-Free Requirements
We have fully adopted halogen?free materials across all product lines. All qualified halogen?free products
are labeled as Pb?free, RoHS compliant, and HF (halogen?free). We can provide complete material
composition declarations and third?party test reports to ensure that environmental compliance is fully
traceable and verifiable.
Environmental, Social and Governance (ESG) Report < 24 >
SGMICRO Message from About Scientific Innovation Responsible Green People-
Conflict Minerals Management
Our responsible?sourcing framework is built on a strict commitment to eliminating the use of conflict minerals. We have
established a comprehensive supply?chain management mechanism for responsible minerals and formulated the
Environmental Restricted Substances Management Specification , which defines conflict minerals, clarifies control scope,
management and traceability methods, and outlines our compliance commitments. We update these requirements dynamically
in line with international regulations, industry standards, and customer expectations to ensure full alignment with global
responsible?sourcing principles. We have completed supply?chain investigations and disclosures for traditional conflict
minerals—tin (Sn), tantalum (Ta), tungsten (W), and gold (Au)—as well as industry?critical minerals such as cobalt and mica.
Traceability information, including mineral origins and smelter certifications, is referenced through CMRT/EMRT reports.
During supplier onboarding, we follow the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals and use
tools such as the Conflict Minerals Reporting Template (CMRT) developed by the Responsible Minerals Initiative (RMI) to
conduct due?diligence assessments. This ensures that minerals contained in products manufactured on our behalf, such as
gold, tin, tantalum, and tungsten, are not directly or indirectly sourced from conflict?affected regions. We also require our
suppliers to sign an Environmental Agreement, which explicitly mandates compliance with conflict?free sourcing policies in
accordance with the Dodd?Frank Act (DRC conflict?free policy). Furthermore, we have established comprehensive processes to
ensure traceability of materials.
The company is diligent in constructing a responsible system for sourcing minerals, closely collaborating with upstream and
downstream businesses to promote responsible procurement practices. At the time of the report, we have incorporated
hazardous?substance control and responsible?mineral sourcing requirements into our supplier onboarding reviews and regular
audits as core evaluation criteria, achieving 100% coverage across all suppliers and ensuring product compliance from the
source of the supply chain. Audit results confirmed that all suppliers have established and implemented Conflict?Free Minerals
Conflict?Free Minerals and have extended conflict?free due?diligence practices to their downstream supply chains, ensuring
that key minerals, such as tin (Sn), tantalum (Ta), tungsten (W), gold (Au), cobalt (Co), and mica, are sourced exclusively from
non?conflict regions.
We reviewed 147 smelters or refiners associated with the four conflict minerals (3TG: tin, tantalum, tungsten, and gold). Among
them, 127 have been certified under the RMAP program or jointly recognized by authoritative bodies such as RMI, LBMA, and
RJC. For smelters or refiners that have not obtained certification, we have required suppliers to remove them from the supply
chain to ensure that all conflict minerals meet relevant sourcing requirements.
At the time of the report, 100% of the mineral raw materials in our supply chain originated from RMI?recognized smelters and
compliant mineral?producing countries. Several key suppliers have also obtained Responsible Business Alliance (RBA)
responsible?sourcing certifications, ensuring that our supply chain remains fully traceable and verifiable.
Performance:
• Percentage of the mineral raw materials used by SGMICRO •Traceability white list rate: 100%
sourced from RMI-certified smelters or countries: 100%
•Supplier due diligence rate: 100%
•Suppliers with hazardous substances and conflict mineral
management system: 100%
Environmental, Social and Governance (ESG) Report < 25 >
Green
Comes First
In response to the global challenges posed
by climate change, SGMICRO puts
sustainable?development principles into
practice and continues to explore and
innovate. We are committed to embedding
green?development concepts throughout
our entire business and operational
processes, focusing on “carbon reduction,
water conservation, waste reduction, and
energy efficiency” to minimize our
environmental impact. Through research
and innovation, we advance green,
low-carbon technologies to support
industry sustainability.
Environmental Management Systems 27
Resource Management and Utilization 28
Tackling Climate Change 29
SGMICRO Message from About Scientific Innovation Responsible Green People-
Environmental Management Systems
Building Environmental Management Systems Environmental Policy
SGMICRO strictly adheres to laws and regulations of the People's We advance environmental management through a systematic In setting our environmental objectives, we focus on key dimensions: solid?waste recycling and control rates, noise emissions, electricity
Republic of China, including the Environmental, Protection Law and standardized approach embedded across all business consumption, and hazardous?substance management. We issued the Quality and Environmental Objectives Release Order , incorporating
Water Pollution Prevention and Control Law, Air Pollution processes, continuously enhancing our internal environmental these targets into the annual management review and establishing a closed?loop mechanism of “Plan-Do-Check-Act” . In 2025, our
Prevention and Control Law, Prevention and Control of management system in accordance with the ISO 14001 standard. environmental management system continued to operate effectively and successfully passed the annual surveillance audit, providing a
Environmental Pollution by Solid Wastes Law , and Environmental In 2025, we updated and refined our Environmental Management solid foundation for the standardization and institutionalization of our environmental management practices.
Noise Pollution Prevention and Control Law . Upholding a green Manual , further clarifying leadership responsibilities,
development philosophy, we actively support China's "carbon departmental roles, and pathways for achieving environmental
neutrality and peak carbon emissions" goals and diligently fulfill objectives, ensuring that the environmental management system
our social responsibility for energy conservation and emission remains closely aligned with the company's strategic direction.
reduction. Legal compliance Continuous improvement
Compliance with applicable laws, Continuous improvement of the
regulations, and other requirements environmental management system
Responsibilities of management in environmental management
Risk prevention Green operation
Energy conservation, emission Provide the best products and
reduction, pollution prevention, services for green energy customers,
and control and promote a green supply chain
Taking accountability Ensuring that environmental policies and Ensure the integration of the Ensure that the
for the effectiveness environmental objectives are established and environmental management resources needed for
of the environmental are compatible with the strategic direction system requirements into the the environmental
management system and the context of the organization organization's business
processes
management system
are available Environmental Monitoring and Awareness
We have established a routine environmental?monitoring mechanism to regularly analyze energy consumption, waste generation, and
noise emissions across our operating sites. Any abnormalities trigger immediate investigation and corrective actions to ensure
environmental performance remains under control.
For noise management, we strictly comply with GB12348-2008 Industrial Enterprise Boundary Noise Standards Class III functional areas
standards . We conduct regular maintenance on noise?generating equipment to ensure below 65dB during the day and below 55dB at
Promoting continual Directing and supporting Ensure that the Communicating the importance of effective
night (from 10:00 PM to 6:00 AM the next day).
improvement persons to contribute to the environmental environmental management and of
effectiveness of the management system conforming to the environmental To strengthen environmental awareness among all employees, we leverage the ISO 14001 environmental?management system to
environmental management achieves its intended management requirements deliver comprehensive training, including waste?management programs that promote waste sorting and recycling, helping employees
system outcome(s) integrate environmental responsibility into daily work practices. In 2025, 100% of the employees participated in environmental
protection-related training.
Environmental, Social and Governance (ESG) Report < 27 >
SGMICRO Message from About Scientific Innovation Responsible Green People-
Resource Management and Utilization
Energy Management Case Rooftop Solar Project at Jiangyin Site
We actively expand the use of renewable energy across our operations. In 2025, the
Our company actively supports environmental protection by prioritizing the effective
rooftop photovoltaic (PV) project at our Jiangyin site was officially commissioned, with an
and strategic use and science-based management of energy. We integrate these practices installed capacity of approximately 550 kW. The facility generated 314,195.6 kWh of
into our daily operations and implement energy-saving and emission-reduction solar power during the year, accounting for about 5% of its total electricity
policies. This approach not only reduces our environmental impact but also optimizes consumption. We will continue to optimize our energy?use structure by increasing the
production structure, thereby enhancing our corporate competitiveness. share of renewable energy, including through the procurement of green electricity.
Energy-saving and Reduced Consumption in Practice
Water Resource Management
Enhancing equipment operation and maintenance efficiency:
We standardize equipment?operation management and conduct regular inspections, We follow the principles of “prioritizing conservation and promoting reuse” and have
maintenance, and repairs to eliminate potential faults in a timely manner, ensuring efficient, established a full?process water?resource management system. In managing our use of
stable, and safe equipment performance. water, we refer to the Energy and Resource Control Procedure to collect monthly
water?consumption statistics across all operating sites, supported by an anomaly?alert
mechanism to promptly identify and address leaks, waste, or other irregularities.
Refined energy?consumption management: Conservation awareness is reinforced through signage in public areas and the
The Integrated Management Department tracks and analyzes monthly electricity and water promotion of water?saving devices.
consumption across all operating sites, supported by an anomaly?alert mechanism to ensure For water recycling, our Jiangyin site has constructed a rainwater?collection pool, with
timely investigation and resolution of abnormal energy?use patterns.
collected rainwater used for landscape irrigation. In 2025, a total of 332 tonnes of
rainwater were utilized, reducing reliance on city water sources. Utility & auxiliary
Employee engagement in energy conservation: facility systemsuch as air?conditioning and vacuum systems, adopt circulating?water
reuse models to further enhance water?use efficiency.
We promote energy?saving behaviors by placing visible reminders on water, electricity, and
paper conservation in public areas and reinforcing these messages through training and
Waste Disposal
cultural initiatives, encouraging employees to adopt sustainable habits in daily work.
Standardized air?conditioning energy management:
All office areas are equipped with variable?frequency air?conditioning systems, and we SGMICRO develops and sells analog ICs, outsourcing manufacturing. For general solid
strictly enforce temperature?control standards of no lower than 26°C in summer and no waste and small quantities of hazardous waste generated from our operations, we have
higher than 20°C in winter to effectively manage HVAC energy consumption. established dedicated waste?management procedures to ensure 100% classified
storage with clear labeling. Waste?segregation and recycling points are established
across our operating areas and provide employees with waste?management training to
promote proper waste sorting and the reuse and recycling of materials. We also
Optimized paper-use management: maintain waste disposal records and have contracts with third-party processors to
We maintain a paper?use monitoring and management mechanism, promote double?sided ensure compliance.
printing and paper reuse, and advance paperless office practices to reduce paper waste.
For all end-of-life electronic products, test kits, and other electrical equipment, the
company partners with qualified professional recycling organizations for proper
disposal. Similarly, discarded ink cartridges, toner cartridges, computers, and other
Low?carbon lighting system upgrades: devices from all regional offices are collected by the local IT department. These items
LED energy?efficient lighting has been installed throughout the office and public areas. are then regularly retrieved and documented by certified environmental protection
Leveraging their high luminous efficacy and low power consumption, we improve agencies. For the small quantities of hazardous waste generated, we collect and
lighting?energy efficiency and reduce electricity usage associated with lighting systems. transfer such waste to licensed hazardous?waste disposal service providers, ensuring
compliant treatment and effective control of environmental risks.
Environmental, Social and Governance (ESG) Report < 28 >
SGMICRO Message from About Scientific Innovation Responsible Green People-
Tackling Climate Change
In 2025, following the latest guidance from the Shenzhen Stock Exchange and the recommendations of the Task Force on Climate?related Financial Disclosures (TCFD), we conducted a
preliminary identification of climate?related risks and opportunities. This work supports our low?carbon transition and advances the alignment of business development with climate
protection.
Green R&D Strategy:
Climate Governance Structure Upholding the philosophy of "prioritizing energy conservation, emission
reduction, and environmentally sustainable development," We are
committed to our environmental duties throughout the entire lifecycle of
We place strong emphasis on climate?change management. To effectively address each chip, from definition and design to manufacturing. Our products'
potential climate?related risks and opportunities, we have integrated strong performance and quality contribute to longer product lifecycles,
climate?management responsibilities into our ESG governance framework. Clear roles reducing electronic waste from chips and end?user devices as well as
associated packaging materials, thereby alleviating environmental pressure.
and responsibilities are defined across all management levels, supported by regular
assessments, analyses, and response actions. We also review progress toward our
medium? and long?term carbon?reduction goals and ensure the implementation of
climate?management initiatives.
Low?Carbon Operations Strategy:
Climate?Response Strategy 02 We integrate green and low?carbon principles into core operational
processes; Reduce operational carbon emissions by optimizing our energy
structure, improving energy efficiency, and advancing energy?saving and
emission?reduction initiatives.
Grounded in our industry's characteristics and operational realities, we have developed
a multi?dimensional climate?response strategy centered on three pillars: risk mitigation,
opportunity capture, and low?carbon transition. These strategies guide the
implementation of climate?action measures across the organization.
Supply?Chain Collaboration Strategy:
Low?Carbon
encouraging suppliers to strengthen environmental management and
Green R&D
Operations implement emission?reduction measures to jointly build a green value chain.
Strategy
Strategy
Climate?
Response
Strategy
Climate Adaptation Strategy:
Low?Carbon
Operations
Supply?Chain
Collaboration
emergency?response mechanisms, upgrading facility standards to better
withstand extreme weather, and strengthening supply?chain resilience
Strategy Strategy through diversified sourcing and inventory management to mitigate
climate?related disruption risks.
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SGMICRO Message from About Scientific Innovation Responsible Green People-
Climate Risk Identification and Management Case Enhancing Climate Resilience Through Flood and Typhoon Emergency Planning
To strengthen our resilience to extreme weather events, we developed and implemented a Flood and Typhoon Emergency Planning , establishing a coordinated response
In 2025, following our climate?impact, risk, and opportunity management process, mechanism led by an emergency command team and supported by cross?functional departments. Through pre?season preparation, facility inspections, and at least one
which covered identification, assessment, prioritization, and management, we emergency drill and training session each year, we enhanced our capabilities in power?supply assurance, personnel evacuation, and supply?chain recovery. The plan has
conducted a comprehensive evaluation of climate?related transition risks and effectively mitigated the impact of heavy rainfall events, safeguarded business continuity, and reduced secondary environmental risks, supporting both stable operations
opportunities to ensure alignment between business development and and ecological protection.
climate?transition response.
Climate Impact, Risk and Opportunity
Management Process Climate Targets and Actions
We systematically review internal and external climate?related
Identification factors across production operations, supply?chain SGMICRO identified "mitigating climate change and promoting sustainable development"
collaboration, customer markets, and technology development, as the core initiative of our environmental responsibility. We have since made a formal
establishing a comprehensive list of climate?related risks and climate action commitment, and set mid- and long-term carbon reduction targets.
opportunities to ensure no material issues are overlooked. Carbon emission reduction performance is regularly tracked and assessed.
Evaluations
Identified risks and opportunities are evaluated based on
three core dimensions: severity, likelihood, and detectability. Our promise:
Using 2025 as the base year,
we are committed to reducing the carbon emissions of per million sales in
Prioritization Based on assessment results, risks and opportunities are scope I+II in owned facilities by 50% by 2030,
prioritized by significance, with risk levels defined to guide
resource allocation and action planning. and to reduce carbon emissions of per million sales in scope I+II in owned fa-
cilities by 90% by 2050.
Using 2023 as the base year,
Management Aligned with our risk appetite and strategic objectives, we we are committed to reducing carbon emissions of per million procurements
formulate differentiated response strategies to ensure by 25% by 2030.
effective implementation and measurable outcomes.
In 2025, following the recommendations of the Task Force on Climate?related Financial We have established a greenhouse?gas (GHG) inventory mechanism covering Scope I
Disclosures (TCFD) and industry practices, we conducted climate?risk and opportunity direct emissions and Scope II indirect emissions from purchased energy. We regularly
assessments for our headquarters and major operating sites. The assessment identified review carbon?emission data and track progress toward our reduction targets. In 2025,
potential transition risks and opportunities, including three categories of risks: policy our Scope I GHG emissions totaled 11.35 tonnes of CO₂e, Scope II emissions totaled
and regulatory risks, technology risks, and market risks, and two categories of 6,276.17 tonnes of CO₂e, and our overall GHG emissions amounted to 6,287.52 tonnes
opportunities: supply?chain compliance opportunities and green?product opportunities. of CO₂e.
Environmental, Social and Governance (ESG) Report < 30 >
People-oriented
Together We Thrive
The stable growth of our talent team is the core
driving force behind the company's sustainable
development. SGMICRO consistently upholds a
talent philosophy of "integrity and competence,
dedication to teamwork, pursuit of excellence,
and practical responsibility," coupled with a
people-centric approach to long-term growth.
We're dedicated to providing a broad career
platform for all employees and fostering a fair,
diverse, and safe work environment. SGMICRO
deeply cares for the well-being of every
employee, continuously optimizing our welfare
system, building advanced and efficient training
mechanisms, and actively exploring diverse
communication channels. We're committed to
fulfilling our employees' aspirations for the
future, working hand-in-hand with them to plan
and achieve the company's long-term vision.
Recruitment 32
Employee Benefits 33
Talent Development 36
Health and Safety 39
Social Responsibility 40
SGMICRO Message from About Scientific Innovation Responsible Green People-
Recruitment
We actively create employment pathways and job opportunities for persons with
Careers disabilities. In office buildings where conditions permit, we have also installed accessible
ramps and barrier?free restrooms to provide a more inclusive and convenient working
environment. At the time of the report, the company had 15 disabled employees.
Anchored in our people?first philosophy, SGMICRO has long pursued diversified
talent?acquisition pathways, combining campus recruitment with social recruitment to Experienced Recruitment Year Number of total employees
maintain an open, inclusive, and diverse talent?entry system. During the selection
process, the company strictly adheres to the principles of fairness, impartiality, and As our company continues to grow and expand, our ability to attract talent
transparency. By attracting talent with diverse experience and backgrounds, we consistently strengthens. We actively utilize a variety of recruitment channels 2025 1,835
continuously drive innovation and growth, laying a solid foundation for the company's and methods, including but not limited to, various job boards, our company
stable development and future strategic advancement. website, and official WeChat accounts. This approach helps us attract seasoned 1,598
industry professionals, bolstering our talent pool and continuously refining our
At the time of the report, we continued to enhance our employer brand, attracting and talent pipeline. This, in turn, meets our increasing talent demands and
cultivating top talent through various campus activities and training programs. We also accelerates our technological innovation. 2023 1,415
brought in experienced technical and management personnel through external hiring initiatives.
Diversity of Talents 2021 858
Our company is dedicated to fostering a diverse and inclusive work environment. We
strictly adhere to a non-discriminatory hiring policy, basing all employment decisions
solely on an individual's work abilities and the requirements of the position. We
Male: 65.99% PhD: 1.25% Master's degrees: 47.41%
unequivocally prohibit discrimination based on race, color, ethnicity, age, nationality, Gender Education
pregnancy status, religion, union membership, social background, educational level, Female: 34.01% Bachelor's degree or under: 51.34%
disability, gender, marital status, ethnic origin, or political affiliation. Furthermore, the
company explicitly prohibits sexual harassment and all forms of inappropriate conduct,
striving to protect the dignity and safety of every employee. 40+ yrs old: 20.76% Technicians: 74.06% Administration: 4.09%
Age 30 to 40 yrs old: 36.62% Position Sales: 14.11% Finance: 1.31%
Under 30 yrs old: 42.62% Production: 6.43%
Measures for Diversity
Policy making: SGMICRO has incorporated equal employment and diversity
guidelines into our management framework, which are communicated to
employees through various means such as new employee training programs
and assemblies, ensuring their understanding and adherence to the guidelines.
Compliance in Employment Practices
Campus Recruitment Establishment of supervision mechanisms: The company has established
effective supervision mechanisms led by the Human Resources Department to The company thoroughly verifies the age of applicants to ensure that only employees
The company introduces its company culture and recruitment process for a regularly inspect the implementation of equal employment and diversity aged eighteen and above are hired in compliance with legal requirements. We respect
range of different job opportunities through campus recruitment, leveraging policies, able to promptly identify issues for improvements. the fundamental labor rights of our employees and value their freedom to choose their
online and offline promotional efforts as well as campus-enterprise Enhanced communication and feedback: SGMICRO promotes and employment, setting a zero-tolerance policy towards forced labor and human
collaborations. This strategic approach not only expands our talent pool but strengthens employee communication through various channels and methods, trafficking. No violation was reported at the time of the report.
also fulfills our corporate social responsibilities, contributing to our reputation encouraging employees to provide feedback and suggestions on equal
as an exceptional employer. employment and diversity policies.
Environmental, Social and Governance (ESG) Report < 32 >
SGMICRO Message from About Scientific Innovation Responsible Green People-
Employee Benefits
Compensation and Performance
Our company embraces a "total compensation" philosophy, offering industry-competitive salaries and benefits to attract and retain key
talent who drive our future growth. While ensuring overall fairness and equity, our compensation structure favors those who take on
greater responsibility and create high value. We adjust compensation based on actual economic performance, labor market conditions, Work Hours and Holidays
and industry developments, in conjunction with individual employee growth and performance. We are committed to equal pay for equal
work, ensuring no differential treatment based on an employee's gender. SGMICRO is attentive to employees’ needs and actively promotes a culture of care and support. The company champions
work-life balance for our employees, ensuring compliance with relevant laws and regulations. Employees are entitled to
SGMICRO's long-term focus emphasizes a balance between performance targets and individual/team development, driving sustained statutory holidays, weekends off, sick leave, maternity leave, and other leave arrangements.
improvement. We encourage employees to aspire to ambitious goals to ignite greater passion, performance, and growth. In 2025, we
continued to implement our integrated “Strategy–Organization–Individual” performance alignment framework, translating corporate
development goals into clear and actionable individual performance indicators to ensure that employees and the company move in the Gender Equality
same direction. Performance results are further integrated into talent assessment and role matching across business functions, enabling
more data?driven workforce decisions and reinforcing the organization's overall execution capability. At the time of the report, the A firm believer in equal pay, the company provides female employees with equal employment and career development
coverage rate of comprehensive performance management (including performance evaluation, performance coaching, and performance opportunities, placing great importance on safeguarding the lawful rights and interests of our female employees. In addition to
goal setting) reached 100%. statutory benefits such as maternity leave and childbirth?related leave, we provide female employees with maternity insurance,
dedicated mother?and?baby rooms, and special benefits for International Women's Day.
Employee Incentives
We use various incentive mechanisms, such as performance bonuses, employee benefits, and recognition programs, to boost employee
dedication and satisfaction while strengthening our company's cohesion. Our long-term equity incentive plans allow employees to share
in the company's growth. This continuously attracts and retains skilled technical and management talent who strongly identify with our
culture and values. It helps ensure the stability of our core team while constantly injecting vitality into our ongoing development. In
recent years, we've significantly enhanced these long-term incentive programs, launching seven plans since becoming a public
company, closely aligning company performance with employee interests and fostering a shared focus on long-term growth. At the
time of the report, we implemented the 2025 Stock Option Incentive Plan and 2025 Stock Option Incentive Plan Phase II , granting stock
options to 1,464 recipients, including senior management, core managers, and the backbone members of our technical (operation)
teams, covering over 90% of the total number of the company's employees at the time.
Rights and Benefits
SGMICRO strictly adheres to national laws and regulations in China, such as the Labor Law, Labor Contract Law, and Law on the
Protection of Minors. Additionally, we comply with international guidelines and standards, including the Universal Declaration of Human
Rights, the Core Conventions of the International Labor Organization, and the UN Guiding Principles on Business and Human Rights. We
are committed to fairness, equity, and transparency, and we fully respect and safeguard the fundamental rights and legitimate interests
of all employees.
Environmental, Social and Governance (ESG) Report < 33 >
SGMICRO Message from About Scientific Innovation Responsible Green People-
Employee Benefits
Flexible working hours Employee health Promoting flexible
and remote works Improve team cohesion management leave practices
Through flexible working A diverse range of sports events We have established a multi?tier Paid sick leave is offered to all
arrangements and dual?location and team-building activities are health?protection system, employee to ensure their physical
office setups in key business cities, organized regularly to enhance achieving 100% annual well-being.
we enhance employees’ team solidarity and cohesion. physical?examination coverage
commuting experience while through certified medical
reinforcing our commitment to institutions and providing
green and sustainable office supplementary commercial
operations. accident insurance to ensure
comprehensive protection of
employees’ health and safety.
Customized festive Enhancing logistical Establishing assistance Expanding overseas
benefits support mechanisms protection
We have established a In several cities, we provide We maintain a long?term care For employees traveling abroad
personalized festival?benefit convenient shuttle transportation mechanism to support employees for business, we provide additional
platform that offers a wide range and well?equipped employee and their immediate family overseas insurance to strengthen
of welfare packages, including cafeterias to make daily life easier. members in times of serious their protection.
cultural experiences, lifestyle These services help employees illness. Through a dedicated
services, and smart?device concentrate on their work while assistance program, we offer
options, to meet employees’ benefiting from a more financial aid or leave?related
diverse preferences and needs. comfortable and supportive support depending on the specific
environment. situation.
Environmental, Social and Governance (ESG) Report < 34 >
SGMICRO Message from About Scientific Innovation Responsible Green People-
Employee Communication Employee Grievance Report
SGMICRO values the input of all employees and encourages honest and effective communication as part of our corporate structure and SGMICRO upholds the core principle of "respecting every employee's voice" by establishing a robust grievance management system and
culture. To foster an open and inclusive workplace, the company has implemented communication management procedures to welcome a timely response mechanism. Based on the principles of being "objective, fair, and just", the company offers multiple feedback channels:
diverse suggestions and advice while ensuring prompt and appropriate responses. We maintain open communication channels through reporting to direct supervisors or department heads; submitting complaints via the company's internal dedicated email; using suggestion
employee assemblies, regular HR communications, quarterly review meetings, and suggestion boxes. We have also established a boxes; and directly contacting the HR department or the management.
normalized communication mechanism that covers different employee groups. HRBPs in each region are responsible for timely
engagement and feedback collection, while managers at all levels actively respond to and address employee concerns. The company strictly enforces confidentiality throughout the grievance process to protect employee privacy. Upon receiving a complaint
or appeal, we respond promptly with a thorough and impartial investigation while providing regular updates to the employee on the
progress. All decisions are made fairly and reasonably based on investigation findings in full compliance with company policies, ensuring
the protection of employees' legitimate rights and interests.
Employee Communication Channels
Regular
Quarterly Review
Employee Assembly Communications Suggestion Box
Meetings
with HR
Employee assemblies are In quarterly review meetings, A mechanism for regular Suggestion boxes are
organized periodically, which departments report on communication with HR is in available at all office
cover policy briefings, progress and exchange place, focusing on facilitating locations. Managed by the
performance reviews, and thoughts. This practice dialogue between different HR department, these boxes
communication on the future ensures all departments align employee groups, including collect employee opinions
outlook of the company. in their direction. new hires, long-time and suggestions, which are
These meetings ensure that employees, frontline staff, then forwarded to relevant
all employees are informed middle managers, and key departments and individuals
about the company's personnel. This approach for follow-up.
strategic direction, maintains timely exchange
development goals, and and feedback across the
major decisions, enhancing company.
their sense of belonging and
solidarity.
Environmental, Social and Governance (ESG) Report < 35 >
SGMICRO Message from About Scientific Innovation Responsible Green People-
Talent Development
Recognizing that talent is the cornerstone of sustainable growth, SGMICRO is dedicated to fostering an environment of mutual development for both the company and its employees.
Our people-oriented, open, inclusive, and proactive corporate culture, combined with abundant career development opportunities driven by our rapid expansion and a comprehensive 2025 Annual Performance
compensation and incentive program, is crucial for attracting, motivating, and retaining top talent.
Employee Development Employee Training Training time on average per person (hrs): Training coverage rate (%):
SGMICRO focuses on employee growth, offering career paths for technical Employee growth powers our company's sustainable development. At the time of the report, our
specialization and team management, along with cross-functional mobility. As the training initiatives were guided by the goal of “driving organizational effectiveness.” Through a
company evolves, employees gain expanded job responsibilities and career prospects. combination of learning initiatives, we stimulated organizational learning momentum and
They can develop skills, move into leadership, or explore new roles across departments. empowered employees to advance from basic adaptation to competence and ultimately
A structured promotion system ensures opportunities for mutual growth. excellence, driving holistic improvements in organizational efficiency and performance.
We have built a well?structured and comprehensive training framework covering onboarding
programs, professional and technical development, management capability building, and general
competency enhancement. Leveraging online and offline learnings, along with a structured
process that evaluates training outcomes and ensures that learning is effectively applied in
practice, we continue to strengthen training effectiveness. This ensures that talent development
contributes meaningfully to the company's long?term and sustainable growth.
Technical Path and Management Channel
Technical Path
Our business expansion is driven by effectively meeting the ever-growing
demands of our customers and target markets. This will create increased
opportunities for our employees to develop innovative and complex solutions,
continually enhancing their technical expertise.
Management Channel
The company offers a clear and accessible promotion path, providing
significant career development opportunities for employees ready to assume
greater management responsibilities. This framework empowers individuals to
fully leverage their management skills and expertise, supporting their career
progression goals.
Environmental, Social and Governance (ESG) Report < 36 >
SGMICRO Message from About Scientific Innovation Responsible Green People-
New Graduate Training Program Case Learning through Competition
For many years, our “Shining Future” program has served as our employer brand for graduate training, providing new graduates
with comprehensive and structured onboarding and early?career development. The curriculum covers the company's history, At the time of the report, we organized a product knowledge competition to help employees gain a comprehensive
corporate culture and core values, product portfolio, organizational structure, business conduct standards, general professional understanding of our product portfolio and master core value propositions, technical advantages, application scenarios,
skills, and technical competencies. For graduates in sales and field application support roles, we offer a 4–6?month systematic and customer solutions. By combining quizzes, structured learning, and competitive activities, the program encouraged
on?the?job training program. This includes: foundational competency development tailored to job requirements; comprehensive employees to identify knowledge gaps, refine their capabilities, and deepen their understanding of our products and
product and customer?application training; and practical customer?visit exercises. These initiatives help new graduates quickly business. This initiative strengthened employees’ professional competence, supported performance improvement, and
understand the company, integrate into their teams, build a solid professional foundation, and successfully transition from contributed to enhancing overall team competitiveness and driving the company's long?term development.
campus to the workplace.
SGMICRO focuses on providing employees with up-to-date technical knowledge and industry trends to promote new product research
Management Training and development, which are the key drivers behind the company's growth. To achieve this, we offer internal training to improve R&D
skills for new employees, ensuring we remain technologically advanced. Furthermore, we work with external partners to offer courses in
We organize management?development programs for managers at all levels, including coaching?mentor training and quality management, organizational management, and business compliance, which helps strengthen our overall competitiveness.
performance?management training. These programs help newly promoted managers understand their roles and strengthen their
capabilities in coaching new employees, conducting performance evaluations, setting work objectives, and providing ongoing guidance.
Technical Training Case Supporting employee skill advancement
We continue to build a diversified and systematic professional development framework for our technical teams. Through a series
of thematic training programs, we help employees enhance their professional knowledge and stay informed about technological We actively support all employees in obtaining the professional qualifications required for their roles, helping them deepen
trends. Technical teams also conduct in?depth discussions and knowledge?sharing sessions based on project needs, their expertise and strengthen their professional capabilities. At the time of the report, with the company's encouragement
strengthening internal experience accumulation, knowledge sharing, and technical exchange. By promoting efficient learning, and support, employees successfully obtained the VDA 6.5 German automotive product audit certification, the ESD
technical collaboration, and continued innovation, we enhance our overall capabilities in tackling technical challenges and electrostatic?protection internal auditor training certification, and the ISO 26262 functional safety internal auditor
advancing independent innovation. certification.
Environmental, Social and Governance (ESG) Report < 37 >
SGMICRO Message from About Scientific Innovation Responsible Green People-
Industry-university-research Cooperation Employee Care
Our company is dedicated to fostering deep industry-university collaboration and A rich array of cultural activities is crucial for sparking creativity and strengthening team
nurturing talent in the integrated circuit field, by combining the academic resources of
universities with our own professional expertise. We engage with universities through
cohesion. Our company regularly organizes diverse events that provide employees with Case Care for Female Employees
opportunities for physical well-being, help them manage their work pace, and offer a
scholarships, innovation competitions, textbook reform, and curriculum collaboration to platform to showcase personal talents. These activities also foster communication and
bring industry?relevant engineering concepts and practical insights to faculty and collaboration among colleagues, creating an open, lively, and proactive work At the time of the report, we organized the “She Shines with Spring”
students. These initiatives strengthen the integration of theory and real?world environment. At the time of the report, we organized a variety of activities, including employee?care activity, inviting female employees to write down their
application, while supporting the cultivation and reserve of practice?oriented, and
sports competitions, employee birthday celebrations, women?focused care initiatives, aspirations for personal growth, work–life development, and future goals,
innovation?driven talent that align with the company's long?term development needs.
and the annual company trip. These activities strengthened employee engagement and and seal them in a “time capsule” as a record and reflection of their
contributed to a positive and supportive workplace environment. commitments. Through a warm and ceremonial experience, the activity
encouraged employees to focus on their development and inner voice,
strengthening their self?recognition and motivation. When the time
capsule is opened the following year, employees will be able to revisit
their goals, observe the progress made, and reflect on the adjustments or
breakthroughs achieved along the way, celebrating the small yet
significant steps in their journey. The initiative not only diversified our
employee?care practices but also reflected our respect for women and
our commitment to supporting employee growth. It enhanced employees'
sense of belonging and happiness in the company, while cultivating a
positive, inclusive, and caring work environment.
Case Chip innovation competition
At the time of the report, we continued to put industry-university collaboration into practice
by serving as a major sponsor of the university chip?design competition. We provided three
real?world engineering cases, which were deconstructed and explained by our engineers,
enabling students to learn practical experiences that are rarely covered in conventional
coursework. This initiative strengthened students’ innovative thinking and professional skills,
contributing to the development of future talent and supporting the long?term growth of
the semiconductor industry.
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SGMICRO Message from About Scientific Innovation Responsible Green People-
Health and Safety
In terms of occupational health measures for our staff, SGMICRO has always believed in “Safety first, Prioritize prevention; People-oriented, Scientific management; Energy-saving and
reduced consumption Control pollutio; Honesty and compliance, Continuous improvement.” We continue to reinforce the fundamentals of our occupational health and safety First aid supplies: First aid kits and commonly used trauma medications are available
management, placing strong emphasis on safety?risk prevention and the cultivation of a safety?first culture. Through these efforts, we effectively reduced potential hazards and in the workspace for prompt emergency response in case of employee accidents.
created a healthier, safer workplace that protects the well-being of all employees.
Renovation material selection: We prioritize the use of eco-friendly renovation
materials to minimize harmful substances. All materials chosen for our office spaces
Risk Management
meet environmental protection requirements. Furthermore, prior to official
Occupational Health and Safety System occupancy, air quality testing is conducted to ensure compliance with national
environmental standards, thereby providing a healthy office environment.
The company strictly complies with occupational health and safety laws, regulations, The company is committed to creating a healthy, safe, and well?regulated working
and standards in all regions where it operates. We have established the Occupational environment. For office and production environments, we strictly control safety and Safety performance
Health and Safety Manual, continuously optimizing the safety management system and environmental standards across facility procurement, material selection, and
operational processes, clarifying the responsibilities, authorities, and relationships of construction processes. We also implement systematic safety management in Index 2025 Index 2025
various levels of positions. Following the PDCA (Plan-Do-Check-Act) management equipment?intensive areas such as factories and laboratories to ensure robust
model, we are constantly improving the company's system as well as the overall protection of employees’ occupational health and safety. Recordable accidents 0 Major accidents (Resulting in 0
performance on occupational health and safety. Additionally, we conduct regular safety disability or loss of life)
inspections and maintenance at production facilities and workspaces to ensure timely Lost days of work- 0
identification and elimination of potential safety hazards. related accident Employee health check 100%
Occurrences of 0 coverage rate
We followed the requirements of the ISO 45001 Occupational Health and Safety Occupational Health and Safety Management Measures occupational disease
Management System in establishing an EHS (Environment, Health, and Safety) group
and refined our occupational health and safety management standards and Facilities procurement: We prioritize the purchase of environmentally friendly
Developing a Safety Culture
procedures. In 2025, we released and revised our safety management system by materials and equipment to mitigate potential impacts on employee health from the
introducing or revising over ten occupational health and safety policies and procedures. equipment and the environment at work. We avoid the use of harmful materials, and
reduce air and noise pollution. Additionally, regular inspections and maintenance of
facilities along with their safety components are conducted to ensure safe and
proper operation and reduce the risk of equipment failure. At the time of the report, we promoted occupational health and safety policies and
Measures to raise employees' safety awareness Our work environment: We've created human-centered, multi-functional spaces,
management requirements through training, internal communications, and other
channels, ensuring that our health and safety principles are effectively embedded in
including break areas and dining zones, to help employees relax and recharge during daily operations. In addition, all office locations organized employees to participate in
into employee training programs, with organized learning sessions and annual fire?drill activities conducted by relevant authorities, further enhancing
we regularly replace water filters to ensure the healthiest drinking water for our staff. employees’ fire?safety awareness and emergency?response capabilities while fostering
assessments for employees.
Laboratory safety measures: We equip laboratory personnel with the necessary a workplace culture in which everyone values and contributes to safety.
firefighting equipment is placed in accordance with regulations to ensure clear implemented multiple protective measures, such as installing air?purification
access to fire exits. equipment, conducting routine filter replacements, and applying anti?static systems
and grounding for relevant devices. These efforts help maintain high air?quality
checks, major safety inspections before important holidays, and specialized
safety inspections. Chemical management: We implement full?lifecycle safety management for
chemicals, covering procurement, storage, use, and disposal. We also establish and
emergency response plan for hazardous?chemical leaks and organized unexpected incidents.
targeted training and simulation drills.
Occupational health monitoring: Employees exposed to occupational hazards in
dispensers across the workplace. onboarding, during employment, and at separation. All relevant workplaces adopt
mechanical ventilation and other standard measures to ensure a safe working
Environmental, Social and Governance (ESG) Report < 39 >
SGMICRO Message from About Scientific Innovation Responsible Green People-
Social Responsibility
SGMICRO is committed to sustainable development. We recognize the significance of
social responsibility and actively engage in charitable events. We actively fulfill our
corporate social responsibility by organizing and participating in public?welfare
initiatives, spreading positive social values, and contributing to the creation of a better
and more inclusive community. We have always believed that our long?term growth is
closely tied to the support and trust of the broader community. Moving forward, we will
remain committed to public?welfare efforts and continue to contribute to a more
harmonious society through meaningful, action?driven initiatives. In doing so, we aim to
fully embody the social value and civic responsibility expected of a responsible
corporate citizen.
Case Charity and Donation
At the time of the report, we put our commitment to
social responsibility into action by hosting a series of
charity bazaars in cities across the country. By giving
unused items a new purpose through charity sales, we
created a simple but meaningful way for kindness and
raised funds for local charities. The initiative reflected
the genuine compassion and shared sense of
responsibility embraced by SGMICRO and our
employees.
SGMICRO has partnered with charity foundations to
jointly carry out a series of public welfare and charity
activities, actively supporting students from
underprivileged remote areas in their pursuit of
education, and continuing to create more
heartwarming stories.
Environmental, Social and Governance (ESG) Report < 40 >
Appendix
About this report 42
Key Performance Indicators 43
Key Targets 45
Glossary 47
Feedback Form 47
SGMICRO Message from About Scientific Innovation Responsible Green People-
About this Report
Purpose Basis for Compilation
This report (the "Report") is the annual 2025 Environmental, Social, and Corporate Governance SZSE Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—
(ESG) Report released by SG Micro Corp and our subsidiaries (referred to as "SGMICRO" or "the Sustainability Report and
company", "company", "we" or "us"). The purpose of the report is to facilitate a transparent
dialogue between SGMICRO and our stakeholders regarding our environmental, social, and SZSE Self-Regulatory Guidelines No. 3 for Companies Listed on Shenzhen Stock Exchange—
governance practices and to address their expectations with a comprehensive and structured Sustainability Report
approach. Global Sustainability Standards Board (GSSB), GRI Standards 2021
The Chinese National Standard Guidelines for the Preparation of Social Responsibility
Reports (GB/T 36001-2015)
Scope The Chinese Academy of Social Sciences China Corporate Sustainable Development
Report Guide (CASS-ESG 6.0)
The disclosure scope of this report is consistent with that of the financial information in
the company's 2025 annual report, and some information may involve policies and ISO 26000?2010 Guidance on Social Responsibility
practices from previous years.
Compilation Process
Data This report is based on our company's ESG practices, following a process of "project setting and
research, information collection, drafting and revision, executive review, board review, and public
The report quotes data from various sources, including the company's operational information, release". At some stages, we engage with relevant stakeholders to discuss and validate the
publicly available government documents, annual financial reports, and internal statistical reports, report's framework and content, ensuring transparency and alignment with our corporate values.
among others. Financial data in this report is presented in Chinese currency RMB. In cases where
discrepancies arise between this report and the financial statements, the financial statements
shall take precedence.
Versions and Availability
Reliability Guarantee The report can be accessed and downloaded from the official website of SGMICRO
(www.sg-micro.com), the Shenzhen Stock Exchange website (www.szse.cn), and the
The report contains no false representations, misleading statements or major omissions, CNINFO website (www.cninfo.com.cn). The Report is available in both Chinese and
and we attest to the truthfulness, accuracy and completeness of the contents. English. In case of any discrepancy, the Chinese version takes precedence. We welcome
your feedback for the ESG report. Please contact us at Investors@sg-micro.com.
Environmental, Social and Governance (ESG) Report < 42 >
SGMICRO Message from About Scientific Innovation Responsible Green People-
Key Performance Indicators
Business Performance Environmental Performance
Sector Disclosure item Unit 2025 Sector Disclosure item Unit 2025
Revenue RMB 10,000 389,805.46 Natural gas consumption m? 4,104.03
Net profit attributable to shareholders of the listed Gasoline Liters 831.80
RMB 10,000 54,705.94
company
Disel Liters 250.00
Investment on R&D RMB 10,000 104,519.49 Energy
Business Externally purchased steam ton 943.00
Performance R&D investment percentage % 26.81
Power consumption kWh 11,615,082.65
R&D personnel person 1,335
Externally purchased electricity kWh 11,615,082.65
R&D personnel percentage % 72.75
Externally purchased green electricity kWh 314,195.60
Total cash dividends distributed at the moment
RMB 10,000 9,506.16
Scope I
(with tax) tCO2e 11.35
Basic earnings per share RMB/share 0.8861 Greenhouse gas Scope II tCO2e 6,276.17
Total greenhouse gas emissions (Scope I + II) tCO2e 6,287.52
Office operation Water consumption m? 26,562.80
Note:
emissions from Scope I are calculated based on the consumption of natural gas, gasoline, and corresponding emission
factors. The emissions from Scope II are calculated based on externally purchased steam, externally purchased
electricity and corresponding emission factors.
Environmental, Social and Governance (ESG) Report < 43 >
SGMICRO Message from About Scientific Innovation Responsible Green People-
Corporate Governance Performance
Sector Disclosure item Unit 2025 Sector Disclosure item Unit 2025
Number of board members person 6 Total number of obtained patents Piece 588
Corporate Newly applied patents Piece 141
Male directors person 2
governance Patents
Female directors person 4 Total number of newly licensed invention patents Piece 145
Total number of registered IC layout design registration certificates Piece 401
Number of total employees person 1,835
Social Performance
Male staff person 1,211
Sector Disclosure item Unit 2025 Female staff person 624
Safety Recordable accidents Case 0 Over 50 yrs old person 66
The number of suppliers identified as having actual or Over 40 yrs old person 315
Number 0
potential significant negative social impacts
The number of suppliers identified as having actual or
Number 0 Under 30 yrs old person 782
potential significant negative environmental impacts
The percentage of new suppliers that were screened PhD person 23
% 100
based on environmental criteria
Master's degrees person 870
The percentage of new suppliers that were screened Employee
Supply chain % 100 Bachelor's degree or under person 942
based on social criteria
Production person 118
The percentage of RMI-certified supplier % 100
Technicians person 1,359
Supplier due diligence rate % 100
Sales person 259
Traceability white list rate % 100
Finance person 24
Suppliers with a management system for hazardous
% 100
substances and conflict minerals Administration person 75
Disabled person 15
Average training time per year per employee hrs 78.73
Social insurance coverage rate % 100
Environmental, Social and Governance (ESG) Report < 44 >
SGMICRO Message from About Scientific Innovation Responsible Green People-
SZSE Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange— Sustainability Report
Category No. Topic Corresponding chapter
Environment 4 Ecosystem and biodiversity protection No relevant information disclosed
Society
Recruitment
Employee Benefits
Talent Development
Health and Safety
Sustainability? 19 Stakeholder Communicatio Stakeholder Communication
related
governance 20 Anti?bribery and anti?corruption Business Ethics
Environmental, Social and Governance (ESG) Report < 45 >
SGMICRO Message from About Scientific Innovation Responsible Green People-
GRI Standards Index
Disclosure Corresponding
SG Micro Group reported the information quoted in this GRI content index according to GRI GRI standards item chapter
Instructions
standards between January 1, 2025, and December 31, 2025. Resource management
GRI 302: Energy 2016 302-1 Energy consumption within the organization and utilization
Resource management
GRI 1 used GRI 1: standard 2021 303-1 The interaction with water as a shared resource
GRI 303: and utilization
Water and Effluents 2018 Key Performance
Cor responding Resource management
GRI standards
Disclosure 306-1 Waste generation and significant waste-related impacts and utilization
item chapter
Resource management
GRI 306: Waste 2020 306-2 Management of significant waste-related impacts
Resource management
GRI 308: Supplier New suppliers that were screened against Build a Sustainable
Recruitment 308-1 environmental criteria Supply Chain
Environmental Assessment 2016
Employee Benefits Benefits provided to full-time employees
Talent Development
Health and Safety Occupational health and safety management system
GRI 2:
Corporate
General Disclosure 2021 2-9 Governance framework and composition 403-3 Occupational health services Health and Safety
governance
In terms of governance impact, the supervisory role of Corporate Occupational health and safety topics:
GRI 403:
The highest governance body's role in sustainability Sustainable Development
Sustainable Development
and Safety 2018
Sustainable Development Prevention and mitigation of occupational health and
Sustainable Development
GRI 3: Sustainable Development
Substantive Topics of 3-2 List of substantive issues Management 404-1 Average hours of training per year per employee Talent Development
GRI 404:
ESG 2021 Sustainable Development Training and Education 2016 Programs for upgrading employee skills and
GRI 201: Key Performance GRI 405: Diversity and
Economic Performance 2016 201-1 Directly generated and distributed economic value Indicators qual Opportunity 2016 405-1 Diversity of governance bodies and employees Talent Development
Communication and training about anti-corruption GRI 414: Supplier Build a Sustainable
GRI 205: Anti-corruption 2016 205-2 policies and procedures Business Ethics Social Assessment 2016 414-1 New suppliers that were screened against social criteria
Supply Chain
Environmental, Social and Governance (ESG) Report < 46 >
SGMICRO Message from About Scientific Innovation Responsible Green People-
Glossary Feedback Form
This report is the 2025 annual Environmental, Social, and Corporate Governance (ESG) Report of SGMICRO publicly
Technical Terms Definitions released to society. In order to improve the company's ESG management and enhance our performance in fulfilling ESG
responsibilities, we sincerely ask for your opinions and suggestions. Please fill in the feedback form and choose one of
the following methods to send:
Low Dropout Regulator (LDO) is a type of integrated circuit voltage regulator
LDO characterized by its ability to provide a stable output voltage with minimal power loss.
□ Very good □ Goodgood □good Averagegood □ Less than satisfactorygood □ Bad
A DC/DC converter is a converter that transforms a direct current power source
DC/DC
into another direct current power source with a different voltage or current. 2. Do you think the report can comprehensively and accurately reflect the company's significant economic,
social, and environmental impacts?
Active Matrix Organic Light Emitting Diode (AMOLED) is a type of organic □ Very good □ Goodgood □good Averagegood □ Less than satisfactorygood □ Bad
AMOLED electroluminescent device.
social, and environmental impacts?
Light Emitting Diode, is a solid-state semiconductor device with diode □ Very good □ Goodgood □good Averagegood □ Less than satisfactorygood □ Bad
LED characteristics that can convert electrical energy into light energy.
in the report?
SVHC Substances of Very High Concern □ Very good □ Goodgood □good Averagegood □ Less than satisfactorygood □ Bad
The restriction on the use of certain hazardous substances in electrical and and formatting?
RoHS
electronic equipment
□ Very good □ Goodgood □good Averagegood □ Less than satisfactorygood □ Bad
REACH Registration, Evaluation, Authorization and Restriction of Chemicals
Open-ended Questions
What aspect of this report are you most satisfied with?
LBMA London Bullion Market Association
Responsible Jewellery Council Do you have any suggestions for our future ESG reports?
RJC
Environmental, Social and Governance (ESG) Report < 47 >
SG Micro Corp
Address: F11, Building D, No. 87, North Third Ring Road, Haidian District, Beijing, China
Phone: 010-88825397
Email: investors@sg-micro.com
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