昱能科技股份有限公司 Address: No.2, No.522, Asia-Pacific Road, Nanhu National Sales TEL: 400-1035-181
District, Jiaxing City, Zhejiang Province, China.
Yuneng Technology Co., Ltd. After-sales service TEL: 400-1008-470
TEL: 0573-8398-6967
Contents
Standardizing Operations to Innovation-Driven Empowerment
About this Report 01 About APsystems Strengthen Governance of Quality Management
Chairman’s Speech 03 Company Overview 09 Corporate Governance 27 R&D Innovation 51
Development Milestones 11 Commercial Behaviors 31 Product Quality Management 58
ESG Performance Highlights 05
APsystems Global Footprint 13 Risk Control Management 34 Customer Relationship Management 64
Awards Received in 2024 15 Strengthening Party Building 36 Data Security and Customer Privacy Protection 68
Supplier Management 71
Cultivating Human Resources
and Practicing Responsibility
Protecting the Environment and
ESG Management Promoting Green Energy
Employee Employment and Rights 77
ESG Governance 19 Green Business 39 Employee Training and Development 82
ESG Data Tables and Notes 89
Materiality Analysis 19 Tackling Climate Change 43 Occupational Health and Safety 85
Index 95 Response to the Sustainable Development 24 Green Operations 45 Contributions to the Society 88
Goals (SDGs)
Yuneng Technology Co., Ltd. 2024 ESG Report About this Report
About this Report
Reporting Scope Reporting Principles
The scope of this report covers Yuneng Technology Co., Ltd. and its subsidiaries (referred to as "APsystems" or "the Materiality Quantification
Company"). Unless otherwise stated, the scope of this report is consistent with the scope of the consolidated financial
The Company identifies business-related topics of This report discloses annual key quantitative metrics and
statements of APsystems (stock code: 688348) for the same period.
materiality to various stakeholders as the focus of historical data to the extent possible. Please refer to the
reporting. While reporting material topics in this report, "ESG Data Tables and Notes" section for details.
Reporting Period it also focuses on the characteristics of the Company's
The reporting period ranges from January 1, 2024 to December 31, 2024. Unless otherwise specified, all data in this report industry and operating business. The materiality Comparability
assessment process and results are detailed in the "Topic
are from this period. This report is consistent with the statistics and disclosure
Materiality Analysis" section of this report.
methods of the same quantitative disclosure item
Reporting Basis Accuracy
in different reporting periods; if the data collection,
measurement and calculation methods are changed, the
This report is prepared in accordance with the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed This report ensures that the information is as accurate as relevant data is retrospectively adjusted, and the reasons
Companies—Sustainability Report (Trial) (April 2024), Guidelines No. 1 of Shanghai Stock Exchange for Self-Regulation of possible. The calculation method, calculation basis and for the adjustment are explained in the annotations to
Listed Companies—Standardized Operations (December 2023 Revision), Rules for the Listing of Stocks on the Sci-Tech assumptions have been explained in the measurement the report, so that stakeholders can conduct meaningful
Innovation Board of the Shanghai Stock Exchange (Revised in April 2025) and Self-Regulatory Supervision Guidelines for Sci- of quantitative information to ensure that the calculation analysis and evaluate the development trend of the
Tech Innovation Board Listed Companies of the Shanghai Stock Exchange No. 2 - Voluntary Information Disclosure (Revised error range will not be misleading to the user of the Company's ESG data level.
in March 2025) information. For quantitative information and note
information, please refer to the "ESG Data Tables and Completeness
Data Sources Notes" section of this report. The Board of Directors
The scope of disclosure in this report is consistent
guarantees the content of the report, and there are
The data and cases in the report are all from the official records of the Company's actual operations. with the scope of the Company's consolidated financial
no false records, misleading statements or material
statements.
The financial data are all denominated in RMB. In case of any discrepancy between the financial data and the omissions.
Company's annual financial report, the annual financial report shall prevail. Timeliness
Balance
This report is an annual report covering the period from
Report Publication The content of this report reflects objective facts, and
January 1, 2024 to December 31, 2024. The Company
discloses both positive and negative information about
This report is released in electronic form. The release platforms include the information disclosure platforms tries its best to release the report as soon as possible after
the Company impartially. No negative events that should
the end of the reporting year, providing timely information
designated by the stock exchanges. It can be viewed and downloaded on the Company's website (www. have been disclosed but were not disclosed were found
reference for the decision-making of stakeholders.
apsystems.cn) and the website of the Shanghai Stock Exchange (http://www.sse.com.cn). during the reporting period.
Verifiability
Clarity
Contact us The cases and data in this report come from the original
This report is published in English. This report contains
If you have any suggestions for the report, you can contact us in the following ways: records or financial reports of the Company’s actual
tables, model diagrams, a list of professional terms and
operation. The Company uses the HiESG Performance
Contact address: Building 2, No. 522, Yatai Road, Nanhu District, Jiaxing City, Zhejiang Province other information as a supplement to the text content of
Management Information System to manage ESG data.
this report, so that stakeholders can better understand the
Contact number: 0573-8398-6967 The data sources and calculation processes disclosed
report. To facilitate stakeholders obtaining information
by the Company can be traced back and can be used to
faster, this report provides a table of contents and a
support the inspections of external assurance work.
benchmarking index table of ESG standards.
Yuneng Technology Co., Ltd. 2024 ESG Report Chairman’s Speech
Chairman’s Speech
In 2024, the photovoltaic industry was at the intersection of challenges and opportunities. The industry competition became
increasingly fierce, with intense internal competition spilling over, and backward production capacity struggling to sustain.
It has become extremely urgent to reshape the industry order. However, new opportunities were also emerging from the
crisis. The global demand for renewable energy continued to rise, the pace of technological innovation accelerated, and
industrial collaboration and industry self-discipline also strengthened simultaneously, laying a solid foundation for the
healthy development of the photovoltaic industry. In this environment, as an enterprise focusing on the new energy field,
APsystems has always regarded green, low-carbon, and sustainability as the core concepts of its corporate development.
Supported by technological innovation, it actively fulfills its unchanging mission of "Drive a zero-carbon future and make
smart energy accessible to everyone" and achieves steady performance growth.
Strengthening corporate governance, building solid foundation for stable development regular evaluations. With the joint efforts of our partners, APsystems’ products are available in 156 countries and regions
We continuously optimized the corporate governance structure, earnestly fulfilled the information disclosure obligations, around the world, covering multiple different fields such as residential, commercial and industrial, public buildings, and
strengthened communication and interaction with investors, comprehensively strengthened internal control and internal BIPV, contributing to the global green energy transition.
audit, and deeply integrated the concept of legal and compliant operation into the corporate development strategy. We Promoting green practices, protecting the environment for a zero-carbon future
have adjusted the "Board of Directors' Strategy Committee", a special committee under the original Board of Directors, to
We adhere to the path of sustainable development featuring environmental protection and low carbon, and continuously
the "Board of Directors' Strategy and Sustainable Development (ESG) Committee", with newly added responsibilities such
strengthen our environmental management capabilities. In 2024, the Company, adhered to the concept of "fostering
as ESG management. The aim is to integrate the ESG concept into the Company's strategic planning and decision-making
environmental awareness and advocating a green lifestyle", integrated green operations into daily office work, and adhered
process, and promote the Company's development towards a greener, low-carbon, and sustainable direction.
to the common development of the Company and the environment. To reduce the environmental impact of the Company's
Leading technological innovation, maintaining the original aspiration and strengthening R&D operations, we adopted a production subcontracting model, and all major subcontracting factories have passed the ISO
We have been deeply engaged in the photovoltaic industry for nearly 15 years, committed to the research, development and 14001 Environmental Management System Certification. In addition, we continue to promote the application of advanced
industrialization of MLPE module-level power electronics technology. We have deeply engraved technological innovation in green technologies, vigorously develop green businesses, and contribute to the sustainable and high-quality development
the development context of the enterprise and regard it as the primary productive force of the enterprise. We continuously of the world.
increase investment in research and development and actively carry out industry-university-research cooperation. With Practicing social responsibility, engaging deeply in public welfare to promote harmony
generations of "pioneering" technologies and products, we empower the high-quality development of the industry. In
APsystems actively fulfill our corporate social responsibilities and attach great importance to human capital management
and social welfare. We adhere to the people-oriented concept, continuously improve the employee rights and welfare
industry ecosystems of DIY micro-photovoltaic and energy storage, residential photovoltaic and energy storage, and C&I
system, focus on employee training and career development, build a talent development platform for the entire career
photovoltaic and energy storage with microinverters as the core, became a full-scenario solution provider for distributed
cycle, and achieve the common growth of the value of employees and the enterprise. In addition, we actively engage in
photovoltaics + energy storage, and was awarded the title of a national specialized and sophisticated "little giant"
public welfare undertakings, closely cooperate with many domestic and foreign public welfare organizations, and support
enterprise. We are meeting the green photovoltaic and energy storage needs in different distributed scenarios with a more
and promote the implementation of specific projects through donations, volunteer activities, etc., contributing to the healthy
comprehensive layout of technologies and products.
development of public welfare undertakings.
Strengthening industry cooperation, promoting development through efficient collaboration
In the future, APsystems will further solidify the construction of its ESG system and, with a brand - new posture, embark
We take "providing customers with the best products and services" as our guiding principles, and closely cooperate with on a new chapter of high - quality development. While developing itself, APsystems, with the vision of becoming "the most
stakeholders such as customers and suppliers to promote the development of the industry. In 2024, the Company actively efficient and safe converter of clean energy", will also actively collaborate with various sectors of society, continuously
carried out customer service - related training, conducted customer satisfaction surveys, adopted targeted improvement promote the global green energy transformation, and jointly embrace a bright future.
measures based on the survey results, improved service quality and satisfaction, and established long - term and good
cooperative relationships with many customers. In addition, the Company continuously strengthened the sustainable
management of the supply chain, incorporated performance indicators such as quality, environment, and occupational
health and safety into the assessment dimensions, and dynamically optimized the supply chain management through
Yuneng Technology Co., Ltd. 2024 ESG Report ESG Performance Highlights
ESG Performance Highlights
Environmental Cumulative global sales of MLPE Cumulative generated power Social R&D investment: R&D investment accounts for
module-level power electronic
products exceeded 6 GW
TWh
Cumulative CO2 emission reductions Total greenhouse gas emissions
R&D personnel account for
(Scope 1+Scope 2)
million tons of the total staff
R&D personnel
tons of CO2 equivalent
intellectual property rights in total invention patents in total
Proportion of qualified suppliers Total training hours:
evaluated by environment, labor, ethics,
Corporate
Proportion of independent directors: Number of corruption lawsuits:
and other aspects:
Governance
cases
Average training hours per employee: Total employee training expenditure:
Proportion of Board members who received training on anti-commercial bribery
and anti-corruption:
Employee satisfaction rate: Converted amount of donated materials
CNY 3,777,800
About
APsystems
Company Overview
Development Milestones
APsystems Global Footprint
Awards Received in 2024
Yuneng Technology Co., Ltd. 2024 ESG Report About APsystems
Company Overview Corporate Culture
To provide customers
Yuneng Technology Co., Ltd. was founded in 2010 and registered in the Nanhu High-tech Zone of Jiaxing City. It is a listed company on To Be the Safest and Drive a zero-carbon future
with state of the art
the Science and Technology Innovation Board (stock code: 688348). The Company focuses on the ?elds of photovoltaic power generation Vision the most Efficient Clean Purpose Mission and make smart energy
products and the best
and energy storage, mainly engaged in the research and development and industrialization of module-level power electronics technology Energy Converter accessible to everyone
service quality
in distributed photovoltaic power generation systems, as well as residential and commercial and industrial energy storage technologies. It
provides full-scenario application solutions for distributed photovoltaics + energy storage with microinverters as the core. The Company's
products and businesses include: microinverters and energy communication unit products, residential and commercial and industrial ener-
gy storage products, RSD products, AI smart energy business, distributed photovoltaic power station business, etc. As of the end of 2024,
the company's major wholly-owned or controlled subsidiaries include Renesas Trading, Uihui Photovoltaic, Jiaxing Renegade, Zhejiang Ch-
uangzhi, Jingning Renegade, Leader Reserve Yulin, Taizhou Renegade, Zhejiang Renegade Leader, Jiangsu Yunda, Jiangsu DeReserve, U.S.
Product Family
Renegade, European Renegade, Australian Renegade, and Singapore Renegade, among others.
DIY Balcony Photovoltaics Residential Distributed Commercial and Industrial Distributed Energy Storage Systems
APsystems is a national high-tech enterprise, one of the enterprises that meet the "Photovoltaic Manufacturing Industry Standard Condi-
tions" in the ?fth batch of the Ministry of Industry and Information Technology of the People's Republic of China, and a national "specialized,
re?ned, characteristic and innovative" little giant enterprise. The Company has established the Zhejiang Yuneng Microinverter Research In-
stitute, the Zhejiang Provincial Enterprise Technology Center, and the Zhejiang Provincial High-tech Enterprise Research and Development
Center. The Company has participated in the formulation of 16 national, industry or group standards, and as the ?rst drafting unit, it has
drafted the group standard of "Grid-connected Microinverters for Photovoltaic Power Generation". The Company has always attached great
importance to the continuous research and development of new technologies and products. After years of investment and accumulation,
it has formed a strong R & D and innovation advantage. In addition, the Company also has an international scienti?c research talent team
relying on international advanced R & D concepts, focusing on module-level power electronic equipment and residential and industrial and
commercial energy storage systems. The team has a solid professional knowledge background and rich industry practice experience.
Microinverters Intelligent Operation and Maintenance Systems Rapid shutdown device
The Company actively carries out a global business layout, taking into account business opportunities in both developed countries and
emerging markets. By establishing subsidiaries in the United States, the Netherlands, France, Australia, Mexico, Brazil, Singapore and other
places, it continuously improves the construction of the global marketing network. Up to now, the Company has obtained more than 150
valid domestic and international certi?cation certi?cates or corresponding listings, and its products have been successfully sold to more
than 150 countries and regions around the world. In 2024, the Company achieved an operating income of 1.77 billion yuan and a net pro?t
of 140 million yuan.
In the context of the global vigorous development of renewable clean energy, APsystems will continue to uphold the mission of " Drive a
zero-carbon future and make smart energy accessible to everyone", and is committed to becoming " The Safest and the most E?cient
Clean Energy Converter ". Through the business strategy of "dual-wheel drive in domestic and overseas markets and coordinated promo-
tion of photovoltaics and energy storage integration", it continuously provides the latest and safest smart photovoltaic and energy storage
solutions for global customers.
Yuneng Technology Co., Ltd. 2024 ESG Report About APsystems
Development Milestones 2024
Launched the new generation of hy-
brid microinverters for photovoltaic +
Established a subsidiary in Lyon, Designated as a “Provincial En- Established a subsidiary in Brazil, fur-
ther strengthening the expansion of its
Established a subsidiary Cumulative global sales of Latin American business
Designated as a “Zhejiang Prov- Honored as “2016-2017 Honest
in Seattle, USA MLPE module-level power
ince Enterprise Technology Cen- Private Enterprise in Jiaxing City” Honored with the “Top PV Brand”
electronic products exceed-
Completed the world’s ter” award from EUPD Research in multiple
Participated in formulating the ed 2 GW
largest 6MW microinvert- Latin American countries and the na-
Again awarded “National High- national energy industry stan-
Te c h E n t e r p r i s e ” a n d “ 5 0 dard Technical specification of
Established the head-
Growth-Oriented and Charac- photovoltaic grid-connected mi-
Established a subsidiary in Research, France and Neth- Giant Enterprise" designation.
quar ters in Jiaxing, teristic Enterprises in Zhejiang cro-inverter
Rotterdam, Netherlands erlands
focusing on research Province’s Electronic Information Completed several hundred MWh-level
and operations Industry” Continuously recognized as
The world’s first multi-mod- 2020 commercial and industrial energy stor-
ule single-phase microinvert- a “National High-Tech Enter- age projects, with annual installation
Cumulative global ship- prise”
er YC500 received multiple exceeding 1 GWh
ments of microinver ters
honors such as “Zhejiang Successfully listed on the
exceeded 1 GW Cumulative global sales of MLPE mod-
Manufacturing Excellence” STAR Market of A-shares, ule-level power electronic products
and “First Set of Equipment Received the honor of “Top entering a new development exceeded 6 GW
Manufacturing Products in Photovoltaic Brand” from platform
Zhejiang Province” EUPD Research, France
Recognized as one of the “50
Growth-Oriented and Char-
acteristic Enterprises in Zhe-
jiang Province’s Electronic
Information Industry”
Established a subsidiary
Established sub- 2015 in Mexico rapid shutdown device
sidiaries in Sydney, 2013 Awarded “Zhejiang RSD-S with ASIC special- 2023
Introduced the world’s ized chips developed inde- Released the world’s first fourth-gen-
Australia and Shang- Pioneered multi-module Province Patent Released the EZ1 series microinverter with
first third generation pendently eration 20A high-current multi-module
hai, China microinverter architec- Demonstration Enter- Wi-Fi + Bluetooth dual communication
multi-unit micro-inverter microinverter DS3 and QT2 series
ture: Released the world’s prise” and “Zhejiang Continuously recognized modes
Entered the Austra- products YC600 and products
first dual single-phase Export Brand” as a “National High-Tech
lian market as the QS1, compliant with in- Honored with the “Top PV Brand” award
microinverter YC500 Enterprise” Launched the world’s ?rst dual mrapid
pioneering microin- Again recognized telligent grid scheduling from EUPD Research, France, Latin Ameri-
shutdown device RSD-D with input
verter brand Introduced the world’s as one of the “50 The third-generation dual ca, Mexico, Brazil
Awarded “Key Enterprise current up to 20A
?rst quad three-phase mi- Growth-Oriented and single-phase microinverter
Launched the in Zhejiang Province’s
croinverter YC1000-3 Characteristic En- YC600 received the honor Again honored with the “Top PV Brand”
first-generation sin- Information Economy
terprises in Zhejiang of “Zhejiang Manufacturing award from EUPD Research, France
gle-phase microin- Recognized as a “National - Innovative Leading En-
Province’s Electronic Excellence”
verter High-Tech Enterprise” and terprise” Established the APstorage energy
Information Industry”
“Jiaxing City-Level High- storage brand and laid out in the resi-
Became the first draft-
Tech R&D Center” Included in the fifth dential energy storage ?eld
ing entity for the PV
batch of the enter-
Awarded “Jiaxing City grid-connected micro-
prise list for the Pho-
Patent Demonstration En- inverter under the “Zhe-
tovoltaic Manufactur-
terprise” jiang Manufacturing”
ing Industry Standard
group standard
Conditions
Yuneng Technology Co., Ltd. 2024 ESG Report About APsystems
Global Global Global
APsystems Global Footprint Marketing Strategy Warehousing Strategy After-Sales Support
Establishment of 9 subsidiaries or Establishment of 5 local warehous- UID traceability and rapid response
branches worldwide es worldwide return and exchange service pro-
cesses
Localized teams providing 24/7 no- Dual production bases deployment
time-zone service domestically and internationally to Provision of comprehensive global
ensure global market supply de- multilingual online and o?ine train-
mands ing services
Yuneng Technology Co., Ltd. 2024 ESG Report About APsystems
Awards Received in 2024
Recognized as a national-level "Specialized, Sophisticated, 2024 China Distributed Photovoltaic Excellence Enterprise 2024 “BJX Cup” Energy Storage Influence - Overseas Energy 2024 PVBL Top 100 Solar PV Brands in the World
Distinctive, and Innovative (SSDI) Little Giant Enterprise Storage Supplier
Solution Pioneer Award Project Application Case Award
Photovoltaic Inverters Industry” Honor Award
ESG
Management
ESG Governance
Materiality Analysis
Response to the Sustainable Development Goals
(SDGs)
Yuneng Technology Co., Ltd. 2024 ESG Report ESG Management
ESG Governance Communication with Stakeholders
The Company prioritizes effective communication with stakeholders by identifying them, outlining their key concerns and
To improve the Company’s ESG management, APsystems, in accordance with the relevant laws, regulations, and normative
specifying communication channels to ensure accurate and timely information dissemination. Moreover, the Company
documents such as the Company Law of the People’s Republic of China, the Governance Code for Listed Companies, the
adopts a responsive approach, addressing stakeholders’ concerns promptly and effectively to foster mutual trust and
Guidelines No. 1 of the Shanghai Stock Exchange for Self-regulation of Listed Companies — Standard Operation, and the Guide-
achieve mutually beneficial outcomes. In 2024, the Company identified its key stakeholders as government and regulatory
lines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies — Sustainability Report (Trial), as well as
agencies, shareholders/investors, customers, employees, suppliers, and the community.
relevant provisions in the Articles of Association, has adjusted the original Strategic Committee of the Board of Directors into
the Strategic and Sustainable Development (ESG) Committee of the Board of Directors. The original Work Rules of the Stra-
tegic Committee of the Board of Directors has been revised to the Work Rules of the Strategic and Sustainable Development
(ESG) Committee of the Board of Directors. In addition to the existing functions and powers, ESG management and other
responsibilities have been incorporated. This change aims to integrate ESG concepts into the Company’s strategic planning APsystems Key Stakeholders and Communication Methods
and decision-making processes, driving the Company towards a greener, low-carbon, and more sustainable development.
Key Stakeholders Key Topics Communication Methods
Materiality Analysis
Commercial Behaviors, Risk Control Management, Tackling
Institutional inspections
Climate Change, Environmental Compliance Management,
Policy implementation
Energy Usage, Usage of Water Resources, Waste Disposal,
Government and Information disclosure
Green Business, Ecosystem and Biodiversity Protection
Materiality Analysis Process Regulatory Agencies
In 2024, APsystems, based on its operating conditions and industry characteristics, identified, selected, and analyzed ESG
Shareholders’ Meeting
topics according to both the impact materiality and financial materiality dimensions, following the requirements of the
Corporate Governance, Commercial Behaviors, Risk Control Performance Briefings
Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies — Sustainability Report (Trial) (herein-
Management, R&D Innovation Regular and temporary reports
after referred to as the “Guidelines”). Shareholders/
Investor hotline
Investors
Analysis Process of Dual Materiality of 2024 Topics for APsystems
Customer Relationship Management, Product Quality Customer satisfaction surveys
Step One Management, Data Security and Customer Privacy Customer communication channels
Understand the Company’s operating situation and industry market environment.
Understand the Company’s
Understand the value chain processes where impacts occur and the main stakeholders Protection Information security risk assessments
activities and business Customers
relationship background affected.
Employee satisfaction
Conduct due diligence with various stakeholders through daily communication, information
Employee Employment and Rights, Employee Training and Employee activities
collection, etc., to identify ESG topics that stakeholders care about, and identify and screen ESG
Step Two Development, Occupational Health and Safety Occupational health monitoring
topics relevant to the Company to form an issue list based on the actual work experience of
Create a topic list Employees Safety production management
various departments and the issue list from the Guidelines.
Analyze the actual and potential impacts, risks, and opportunities of the Company’s ESG topics.
Invite external experts and the Company’s departments to conduct qualitative assessments R&D Innovation, Supplier Management, Commercial Signing the Supplier Corporate Social
on the materiality of ESG topics. The impact materiality is judged by the scale, scope, Behavior, Product Quality Management Responsibility Commitment
Step Three and irreparability of the impact, while financial materiality is judged by the likelihood of
Suppliers
Topic materiality assessment occurrence and the degree of financial impact.
Determine the dual materiality ranking of the topics based on the results of the qualitative
assessment of issue materiality.
Safety training
Public Welfare
After review and confirmation by the Board of Directors Office, key topics with higher Public welfare activities
Step Four
materiality in 2024 are disclosed in the report. Community/Public
Topic confirmation and reporting
Yuneng Technology Co., Ltd. 2024 ESG Report ESG Management
Due Diligence Topics Affected Stakeholders Risk/Opportunity Type Time Range Financial Impact
Medium and long-
The Company continuously improves the management process for ESG topics, including the impacts, risks, and Public Welfare Community/Public Reputation opportunities Increase in revenue
term
opportunities, and assesses the materiality of these topics. Through daily communication, information collection, and other Legal risk
Shareholders/Investors, Medium and long-
Commercial Behaviors Increase in operating costs
means, the Company conducts due diligence with stakeholders to identify, analyze, and understand how each ESG issue suppliers Operational risk term
is expected to significantly impact the Company’s business model, operations, development strategy, financial status, Overseas operation risk
Medium and long- Increase in operating costs
performance, cash flow, financing methods, and costs in the short term (0-1 year), medium term (1-5 years), and long term Corporate Governance Shareholder rights protection term Decrease in revenue
(5+ years). The Company also evaluates whether its performance on ESG topics will significantly impact the economy, Shareholders/Investors opportunities
society, and environment, and discloses the targeted management measures and practices the Company has adopted. Risk Control Medium and long- Increase in operating costs
Operational risk
Management term Decrease in revenue
APsystems Impact, Risk, and Opportunity Management of ESG Topics in 2024
Topics Affected Stakeholders Risk/Opportunity Type Time Range Financial Impact
Physical risk
Conclusion of Issue Materiality Analysis
Policy and regulatory risk
Tackling Climate Short, medium, The Company, based on stakeholder communication, due diligence results, industry benchmarking, and operational
Market risk Increase in revenue
Change and long-term conditions, has preliminarily identified and selected 18 ESG topics. Among these, 6 topics belong to the environmental
Product and service
opportunities aspect, 9 topics belong to the social aspect, and 3 topics belong to the corporate governance aspect. The main changes in
Short, medium, APsystems’ ESG topics for 2024 compared to the previous year are shown in the table below.
Energy Usage Energy source opportunities Reduction in operating costs
and long-term
Resource efficiency APsystems Main Changes in ESG Topics in 2024
Usage of Water opportunities Short, medium,
Government and Reduction in operating costs
Resources and long-term
regulatory agencies Policy and regulatory risk
Resource efficiency
opportunities Medium and long- Environmental Compliance
Waste Disposal Reduction in operating costs Environmental Management
term Management
Policy and regulatory risk
Environmental Energy Usage Energy Management
Medium and long-
Compliance Policy and regulatory risk Increase in operating costs To align with the issue name in the
term
Management Occupational Health and Safety Occupational Health Safety Guidelines
Name
Short, medium, changed
Green Business Market opportunities Increase in revenue Employee Training and Development Talent Training and Development
and long-term
Employee Employment Medium and long- Customer Relationship Management Customer Rights and Interests Protection
Increase in operating costs
and Rights term
Policy and regulatory risk Issue name changed for better
Occupational Health Medium and long- Risk Control Management Compliance Risk Control
Employees Increase in operating costs alignment with company practice
and Safety term
Employee Training and Operational risk Medium and long- Increase in operating costs Tackling Climate Change ——
Development Market opportunities term Increase in revenue
Usage of Water Resources —— Added per the Guidelines’
Issue added
Product quality dispute risk requirements
Product Quality Medium and long- Increase in operating costs Data Security and Customer Privacy
Management Product and service term ——
Increase in revenue Protection
opportunities
Market risk Employee Diversity and Inclusivity,
Customer Relationship Short, medium, Employee Employment and Rights
Customers Increase in revenue Employee Benefits
Management Product and service and long-term
opportunities R&D Innovation, Intellectual Property
R&D Innovation
Data Security and Protection
Issue Reduced the number of topics and
Customer Privacy Data breach risk Long term Increase in operating costs Three-Tier Governance (Shareholder’s merged expanded the scope of the issue
Protection Meeting, Board of Directors, Supervisory
Supply chain stability risk Medium and long- Increase in operating costs Corporate Governance Board), Information Disclosure, Rights and
Supplier Management Suppliers Interests Protection of Shareholders and
Market opportunities term Decrease in revenue
Investors
Technology upgrade risk
personnel turnover risk Core Increase in operating costs
Shareholders/Investors, Medium and long- Based on the analysis of the combined impact materiality and financial materiality, 6 topics are identified as having dual
R&D Innovation technology
customers term Increase in revenue
Product and service materiality, 3 topics only have financial materiality, and 9 topics only have impact materiality. The Company will focus on
opportunities advancing ESG work based on the materiality of each issue.
Yuneng Technology Co., Ltd. 2024 ESG Report ESG Management
APsystems 2024 ESG Issue Distribution Matrix
Response to the Sustainable Development
Goals (SDGs)
High
Energy Usage
Dual Materiality Topics Financial Materiality Topics Impact Materiality Topics
Usage of Water Resources
Tackling Climate Change
Waste Disposal
Customer Relationship Management
Employee Employment and Rights Tackling Climate Change, Customer Data Security and Customer Privacy Energy Usage, Usage of Water
Supplier Management
Materiality to Economic, Social, and Environmental Impacts
Employee Training and Development Relationship Management, Supplier Protection, Commercial Behaviors, Resources, Waste Disposal,
R&D Innovation Management, R&D Innovation, Occupational Health and Safety Employee Employment and Rights,
Risk Control Management
Corporate Governance Corporate Governance, Product Employee Training and Development,
Environmental Compliance
Product Quality Management Quality Management Risk Control Management,
Management
Environmental Compliance
Green Business Management, Green Business , Public
Public Welfare Welfare
Data Security and Customer Privacy
Protection
Commercial Behaviors
Occupational Health and Safety
Low Materiality to APsystems’ Financial Performance High
Standardizing
Operations to
Strengthen
Governance
Corporate Governance
Commercial Behaviors
Risk Control Management
Strengthening Party Building
Yuneng Technology Co., Ltd. 2024 ESG Report Standardizing Operations to Strengthen Governance
Corporate Governance
The Company has established a governance framework comprising Shareholders’ Meeting, the Board of Directors, the Supervisory
Board and the management team. Each entity operates in concert, fulfilling distinct roles while synergistically reinforcing one
another. This collaboration has fostered a governance structure characterized by clarity of purpose, evidence-based decision-
APsystems places great emphasis on corporate governance and has established a sound governance system. The making, robust oversight and seamless execution, thereby propelling the Company’s sustained progress and development.
Company strictly adhered to the relevant laws and regulations such as the Company Law of the People’s Republic of China,
the Securities Law of the People’s Republic of China, the Guidelines for Articles of Association of Listed Companies, and the APsystems Corporate Governance Framework
Rules Governing the Listing of Stocks on the STAR Market of the Shanghai Stock Exchange. Concurrently, it complied with
Shareholders’ Meeting Strategy and Sustainable Development (ESG)
directives from regulatory bodies such as the China Securities Regulatory Commission and the Shanghai Stock Exchange Committee
concerning corporate governance practices, continuing to promote standardized operations and enhancing its corporate Supervisory Board
Nomination Committee
governance level.
Board of Directors
Compensation & Assessment Committee
APsystems Corporate Governance Management System Board of Directors Office
Audit Committee Internal Audit Department
Governance General Manager/CEO
Group Management Committee
Chairman’s Special Assistant
Systems: Internal management systems such as the Articles of Association, the Rules of Procedure for Shareholders’ Meeting,
the Related Party Transactions Management System, the External Guarantee Management System, and the External Investment
Management System have been established.
Supply Chain Management
Management Department
Governance structure: Established a "three sessions and one layer" governance framework composed of the " shareholders’
Operations Department
Finance Department
Human Resources
meeting, board of directors, supervisors board, and general manager".
Risk Management
Marketing Center
Brand Marketing
Administrative
Department
Department
Department
Department
R&D Center
Strategy
Impacts, Risks, and Opportunities:
Impact: The corporate governance framework has been improved to enhance the normativity and transparency of governance
and protect the rights and interests of investors.
Risk:
Introduction to the Duties of Shareholders’ Meeting, the Board of Directors, and the Supervisory Board and Their
Overseas Operation Risk: Several key overseas markets for the Company have implemented policies restricting the import of
Meeting Frequency
photovoltaic products and increasing tariffs, creating significant trade barriers and intensifying overseas operational risks.
Opportunity: Aspect Duties Introduction Meeting Frequency
Shareholder Rights Protection Opportunity: A reasonable dividend policy has been developed, and the investor relations
management has been conducted, so as to attract investors. As the highest governing body of the Company, the Shareholders’ Meeting
Held 1 annual Shareholders’ Meeting
Response Strategy: A well-defined and balanced corporate governance structure with effective internal control systems has is responsible for formulating major strategies, reviewing key policies,
and 3 extraordinary Shareholders’
and deciding core management issues. It ensures shareholders’ rights to
been established. The Company strictly complies with regulations to ensure legal and standardized operations. Meetings, reviewing a total of 27
Shareholders’ information, participation and voting, particularly safeguarding the voting
Meeting resolutions.
rights of minority shareholders.
Impact, Risk, and Opportunities Management
Held 10 Board of Directors Meetings,
The board of directors has established four special committees: audit,
reviewing a total of 59 resolutions.
nomination, remuneration and appraisal, and strategy.. All members of these
By establishing and improving internal control systems, the Company continuously promotes standardized and procedural Held 4 Audit Committee Meetings,
specialized committees are directors. The Board of Directors and each
management, enhancing corporate governance. It fulfills information disclosure obligations by law, strengthens investor reviewing a total of 13 resolutions.
Board of specialized committee have corresponding rules or work procedures to
relations management, fully protects the legitimate rights and interests of investors, and promotes the sustainable Held 3 Compensation & Assessment
Directors perform their functions according to company regulations, providing strong
Committee Meetings, reviewing a
development of the Company. support for the Company’s scientific decision-making.
total of 4 resolutions.
Indicators and Targets The Supervisory Board comprises 3 supervisors, including 1 employee
representative supervisor. In accordance with the Rules of Procedure for the
Supervisory Board, each supervisor upholds a strong sense of accountability
Targets: Improve the corporate governance framework, strengthen the investor rights protection mechanism, enhance the Held 9 meetings of the Supervisory
to shareholders and carries out their responsibilities diligently in strict
transparency of information disclosure, ensure the clear and efficient operation of the "three sessions and one layer" with well- B o a rd , rev i e w i n g a to t a l o f 2 3
Supervisory adherence to legal statutes, regulatory frameworks, and the Articles of
resolutions.
defined powers and responsibilities, and safeguard board diversity. Board Association. The Supervisory Board operates in a standardized manner,
Indicators: By the end of the reporting period, independent directors accounted for 42.86%. effectively supervising the legality and compliance of the Company’s financial
affairs and the performance of its directors and senior management.
Yuneng Technology Co., Ltd. 2024 ESG Report Standardizing Operations to Strengthen Governance
Board of Directors Composition Diversity Investor Relations Management
The Company places high importance on and actively promotes the board composition diversity. It has revised and issued The Company values investor relations management. In accordance with the Guidelines for Investor Relations Management
the Independent Director Work System, improving the structure of the Board of Directors and strengthening the constraints of Listed Companies and other relevant laws and regulations, and based on the Company’s actual situation, APsystems
and supervision mechanisms for non-independent directors and the management team. This ensures the protection of has formulated the Investor Relations Management System, which further standardizes investor relations work, strengthens
minority shareholders and stakeholders’ interests and promotes standardized operations. communication between the Company and investors, and aims to maximize corporate value and shareholder returns.
The Board of Directors consists of 7 directors, of which 3 are independent directors. All directors possess extensive
academic backgrounds and rich practical experience across various domains including economics, accounting and Investor Communication
business administration. They serve as a solid foundation for the Company’s stable development. Notably, 2 directors hold The Company continuously strengthens connections and interactions with investors. Through diverse channels including
doctoral degrees while 2 others hold master’s degrees, providing robust intellectual support and strategic guidance to the investor hotlines, emails, the “Shanghai Stock Exchange e-Interaction” platform and investor forums, the Company
Company’s decision-making processes. enhances communication and engagement with investors. It earnestly listens to investor feedback and diligently
safeguards their legitimate rights and interests. During the reporting period, the Company received and responded to 1,500
investor calls, and provided answers to investor queries 35 times through the Shanghai Stock Exchange e-Interaction
Information Disclosure platform, achieving a 100% response rate to investor inquiries.
The Company rigorously upholds its obligations for information disclosure, as mandated by the Administrative Measures In 2024, the Company hosted a total of 3 Performance Briefings, utilizing interactive teleconferencing to present
for Information Disclosure of Listed Companies, and other relevant laws and regulations. In alignment with these legal the Company’s operational performance and engage in detailed discussions with investors. This event fostered the
frameworks, APsystems has formulated the Information Disclosure Management System, which delineates guidelines for establishment of enduring collaborative relationships. Additionally, the Company, in collaboration with the media, organized
periodic reporting, temporary reporting, responsibilities in information disclosure management, disclosure procedures, and a “Shareholders’ Day of Listed Companies” to give back to shareholders through multiple channels, contributing to the
measures for confidentiality. This ensures the authenticity, accuracy, comprehensiveness, and timeliness of information enhancement of the Company’s brand and influence.
disclosure, thereby fully protecting the legitimate rights and interests of investors.
In 2024, the Company disclosed 6 regular reports and 69 temporary announcements. The Company received the highest Shareholder Returns
rating of "A" in the information disclosure evaluation for 2023 - 2024. The Company adheres to a business philosophy of integrity and mutual benefit, placing significant emphasis on delivering
returns to its shareholders. It has formulated the Three-Year Dividend Plan for Shareholders after Initial Public Offering and
Listing on the STAR Market, which enhances transparency and operational feasibility in profit distribution decision-making.
Furthermore, the Company has clearly defined the procedures for profit distribution decision-making in the Articles of
The Company received the highest rating of "A" in the information disclosure evaluation for 2023 - 2024.
Association and established dividend schemes in accordance with the dividend policy. The Company emphasizes providing
reasonable investment returns to investors, safeguarding the legitimate rights and interests of its shareholders.
APsystems Information Disclosure Methods in 2024 APsystems Cash Dividend Payout in 2024
Key Performance Unit 2024
The media outlet and corresponding website for the The stock exchange website for the disclosure of the Dividends Per Share CNY 1.00
disclosure of the Company’s annual reports Company’s annual reports
Total Cash Dividends Paid CNY 10,000 110,693,588
Shanghai Securities News: https://www.cnstock.com/ Shanghai Stock Exchange: http://www.sse.com.cn/
Proportion of Net Income Attributable to Shareholders of the
% 50.26
Securities Times: https://www.stcn.com/ Listed Company in the Consolidated Financial Statements
China Securities Journal: https://www.cs.com.cn/
Securities Daily: http://www.zqrb.cn/
Yuneng Technology Co., Ltd. 2024 ESG Report Standardizing Operations to Strengthen Governance
Commercial Behaviors
To implement anti-commercial bribery and anti-corruption work, the Company has operationalized its anti-corruption
efforts, utilizing various forms to promote anti-corruption knowledge and enhance employees’ awareness of anti-
corruption, thereby preventing corruption from occurring at the source. Through multi-layered and diversified internal
APsystems strictly adheres to relevant laws and regulations such as the Anti-Monopoly Law of the People’s Republic of Chi- training activities, the Company thoroughly educated all employees, suppliers, and customers on relevant laws, regulations,
na, the Anti-Unfair Competition Law of the People’s Republic of China, and the Anti-Money Laundering Law of the People’s Re- and the Company’s systems and requirements regarding anti-commercial bribery and anti-corruption. In addition, the
public of China to ensure that the Company operates in compliance with both domestic and international regulations. The Company achieved a compliance rate of 100% for anti-commercial bribery and integrity agreements with suppliers.
Company places high importance on ethical operations, actively fostering a culture of integrity, and adopts a zero-tolerance
Furthermore, the Company plans to outline and establish a preliminary anti-commercial bribery and anti-corruption system
policy toward corrupt practices.
in 2025. By 2026, APsystems will build and improve a compliance management system for anti-commercial bribery and
anti-corruption that is suited to the Company’s business operations, clarifying the responsibilities of various departments
APsystems Commercial Behavior Management System and positions, standardizing business processes, and eliminating commercial bribery and corruption behaviors from a
Governance
system perspective. A dedicated supervision system will also be set up, with responsible departments conducting regular
and random checks of business activities to ensure the timely identification and correction of potential commercial bribery
and corruption risks.
Governance Structure: The Company has established a collaborative governance model between the management and
governance teams. The management team integrates the business philosophy of legality and compliance into the Company’s
At the same time, the Company provides clear reporting channels, ensuring that suppliers, customers, and others who find
development strategy and prioritizes creating a favorable business ecosystem as a core development guideline. The governance
corruption within the Company can report it directly to internal audit departments, either anonymously or with real names.
team formulates anti-corruption measures and actively promotes anti-commercial bribery policies within the Company.
The Company ensures strict confidentiality of the whistleblower’s identity and effectively guarantees the operation of the
reporting mechanism. In 2024, the Company did not experience any violations of commercial bribery or anti-corruption
laws and regulations.
Strategy
Case Conducting Internal Training on Anti-Commercial Bribery
Impacts, Risks, and Opportunities:
Risks:
In 2024, the Internal Audit Department organized specialized internal training for the procurement and sales departments of the
Legal Risk: In the case of commercial bribery, the Company may face substantial fines, and individuals involved may be held
Group，centering on the theme of anti-commercial bribery. Based on the Anti-Unfair Competition Law of the People’s Republic of
criminally liable, potentially leading to suspension or termination of operations.
China, the Criminal Law of the People’s Republic of China, and other laws and regulations, the Internal Audit Department provided an
Operational Risk: If a partner has internal regulations regarding commercial bribery, and the Company is found to engage in-depth analysis of the legal provisions on anti-commercial bribery. Through the sharing of typical cases, the training illustrated
in such practices, it could lead to the loss of cooperation opportunities, disqualification from project bids, government the potential dangers and consequences. This training effectively improved the compliance awareness of employees in the
procurement, and other business risks. procurement and sales departments, helping them self-regulate their professional behavior and ensuring that the Company’s
Response Strategy: The Company is committed to creating a healthy business ecosystem, adopting a zero-tolerance policy business activities are conducted legally, compliantly, transparently, and in an orderly manner.
to commercial bribery, promoting fair competition, and acting with integrity. It upholds the principle of prevention first, process
supervision, and legal punishment, integrating fairness and justice into its operations and management.
Impacts, Risks, and Opportunities Management
The Company has established an anti-bribery and anti-corruption management process encompassing — “risk identification
risk assessment risk ranking risk monitoring risk response and management.” The Company strengthens Commercial
Behavior management through policy implementation, internal communications, and other means.
Indicators and Targets
Targets: 100% resolution rate for compliance violations. For complaints and reports of unfair competition, the timely handling
rate is 100%.
Indicators: In 2024, 100% resolution rate for commercial compliance violations, and the timely handling rate of complaints and
reports of unfair competition reached 100%.
Yuneng Technology Co., Ltd. 2024 ESG Report Standardizing Operations to Strengthen Governance
Anti-Unfair Competition
Risk Control Management
The Company regards the principle of fair competition as a core tenet of its business activities, deeply integrating it into
all aspects of its strategies and daily operations. It has established and improved an anti-unfair competition management APsystems places great emphasis on risk management and internal controls. It strictly follows relevant laws and
system, clearly prohibiting participation in competition through unfair means such as false advertising, monopolistic regulations, such as the Audit Law of the People’s Republic of China and the Basic Norms for Internal Control of Enter-
practices, and infringement of trade secrets, in order to create a fair and equal business environment. prises. The Company adheres to a risk prevention-oriented approach and aims to improve management effectiveness,
enhancing the enforceability of internal control systems and the effectiveness of internal control management. Over time,
In addition, the Company has developed and issued a series of management systems, including the Supplier Evaluation Pro-
the Company has established a relatively complete internal control system. Through the operation, analysis, and evaluation
cedure, making anti-unfair competition performance an important indicator for evaluating and assessing suppliers. During
of this system, risks in business management are effectively mitigated, contributing to the achievement of internal control
the process of supplier screening, collaboration, and regular evaluation, the Company comprehensively considered whether
goals.
suppliers engaged in unfair competition practices such as false advertising, commercial defamation, or infringement of
trade secrets, managing risks from the source and promoting the healthy development of the supply chain ecosystem.
Risk Management
To strengthen risk management, the Company has established the Risk and Opportunity Response Control Procedures,
Anti-money laundering which outline countermeasures for risks and opportunities. This includes operational requirements for risk responses, risk
avoidance, risk reduction, and risk acceptance, and it builds comprehensive risk and opportunity management measures
The Company attaches great importance to anti - money laundering work and regards it as an important task to maintain and internal control systems to enhance the Company’s ability to withstand risks.
corporate reputation and ensure financial security. In daily operations, the business department conducts full - life - cycle
management of customers and suppliers. Before making external payments, the finance department also checks the
APsystems Risk Management Organizational Structure
" Three Flows Consistency " of logistics, capital flow, and contract flow to prevent money laundering through fictitious
transactions. When it comes to export tax rebate business, the authenticity of customs declarations and tax rebate
General Responsible for providing resources necessary for risk management, including personnel qualifications,
vouchers is strictly reviewed to prevent money laundering after obtaining funds through false exports. Manager and
required training, information acquisition, etc.
Representatives
The Company comprehensively implements anti - money laundering work, which is not only conducive to the long - term from Responsible for determining acceptable risk criteria and reviewing risk and opportunity management at
Management established review intervals.
development of the Company, but also makes a positive contribution to the anti - money laundering work of the whole
society, jointly maintaining the healthy and stable operation of the financial market.
Responsible for developing and maintaining the risk and opportunity management control procedures.
Responsible for organizing and implementing risk and opportunity reviews according to the required
Risk review cycles by this document, following up on the completion of measures taken during the risk and
Management opportunity assessments, evaluating the effectiveness of those measures, and completing the Risk and
Department Opportunity Assessment Analysis Form.
Responsible for the departmental risk assessments and planning responses to risks, as well as executing
and supervising the implementation of risk response measures.
Relevant Responsible for the risk and opportunity assessments of activities within their respective departments
Departments and for developing corresponding measures to avoid or reduce risks and ensure proper execution.
Yuneng Technology Co., Ltd. 2024 ESG Report Standardizing Operations to Strengthen Governance
The Company has established a complete risk and opportunity management process, which includes four stages: risk
and opportunity identification, risk assessment, risk response, and risk and opportunity review. This process effectively
Tax Management
identifies internal and external risks and takes timely countermeasures. The Company places a high level of importance on tax management, adhering strictly to the relevant tax regulations such
as the Accounting Law of the People’s Republic of China. Clear guidelines are established for investment project approvals,
APsystems Risk and Opportunity Management Process
settlement management, cost accounting, expense reimbursements and accounts receivable management, thus creating
a robust financial framework conducive to effective tax planning, risk mitigation and compliance.
Risk and Opportunity Risk Assessment Risk Response Risk and
Identification Opportunity Review
The appointment of the Chief Financial Officer(CFO) is undertaken by the Company’s Board of Directors and requires
Led by the Risk Manage- Evaluate the severity and Take measures to re- Organize and convene shareholder approval, ensuring the independence and integrity of financial operations. The CFO holds accountability to
ment Department, iden- frequency of identified duce or eliminate risks risk and opportunity re-
tify key time nodes to risks, determine the risk by each implementing view meetings by the Risk all shareholders of the Company and executes duties from both financial and wealth management perspectives, thereby
carry out risk identifica- coefficient, anddeter- department based on ManagementDepartment
enhancing the overall financial management proficiency of the Company. The finance department regularly organizes tax
tion,and collaborate with mine whether the risk is theevaluation results. to evaluate the effective-
various departments to acceptable. ness and completeness training sessions for finance personnel to stay abreast of the latest financial and tax regulations, mitigating tax-related
jointly complete the Risk of risk and opportunity
and OpportunityAssess- identification.and review
risks. As of the end of the reporting period, the Company has effectively managed tax risks, and no instances of tax evasion
ment Analysis Form the completion and prog- or non-compliance have been recorded.
ress ofrisk response mea-
sures.
Strengthening Party Building
Internal Control
The Company’s Audit Committee oversees internal and external audits functions. The internal audit organization is the The Company's Party branch was established in 2023. As of the end of 2024, there are currently 37 registered Party
Audit Department, which operates independently under the leadership of the Company’s Audit Committee, conducts members in the Party branch. Under the strong leadership of the Party branch, all Party members in the Company prioritize
audits rigorously, closely monitors operational risks, and ensures the Company’s long-term stable development. To protect ideological guidance, closely integrate political learning with business and management work, and continuously improve
shareholder interests, the Company regularly supervises and audits the exercise of powers by senior management, major their comprehensive qualities and executive abilities.
investments, financial fund-raising and organizational activities related to economic activities. As of the end of the reporting
period, the Company’s major decision-making and operations were in good condition, with no major internal control defects In 2024, the Party branch of the Company adhered to the guidance of Xi Jinping Thought on Socialism with Chinese
reported. Characteristics for a New Era, fully implemented the spirit of the 20th CPC National Congress of the Communist Party
of China and the plenary sessions of the 20th Central Committee, and closely focused on the main line of "Party building
In 2024, the Company’s Internal Audit Department reviewed the difficulties present in current internal business processes leading high-quality development". In practice, the Party branch strictly implemented the "First Agenda" system, constructed
based on operational activities and reported finding these issues to the management team. After careful consideration by a "Four-in-One Learning Linkage" mechanism, and gave top priority to learning through various forms such as centralized
the management team, the Company entrusted external consulting firms for a comprehensive diagnostic evaluation of the study, special discussions, on-site research, and online exchanges, creating a strong learning atmosphere. The Party branch
Company’s situation, so as to optimize the internal management processes. educated and guided the vast number of Party members, cadres, and employees to firmly establish their political beliefs,
APsystems Audit Mechanism strengthen their ideals and convictions, and pool the strength for development, transforming the organizational cohesion
into the centripetal force for high-quality development. Through a series of well-organized learning activities, the Party
Internal Audit
branch organically integrated the Party building work with the daily operation, fully stimulating the enthusiasm and creativity
The Company’s directors and supervisors regularly organize internal oversight activities to conduct
Mechanism systematic and standardized audits of the Company’s operational management. These audits encompass of Party members. In addition, the Party branch also focused on enhancing the cohesion of Party members, pooling the
areas such as financial matters, procurement, expenses, contracts, and other key operational management strength of Party members and improving work quality through forms such as theme Party day activities and volunteer
aspects if necessary. The designated audit leader is directly accountable to the Company’s board of services. At the same time, the Party branch was committed to cultivating Party members into high-quality talents urgently
directors, ensuring the independence of auditors and the objectivity of audit results. Upon identifying needed by the enterprise, injecting strong impetus into the high-quality development of the Company.
issues, they provide recommendations for corrective actions and conduct follow-up checks. The
proficient execution of the internal audit system has resulted in a progressive standardization of corporate
management, leading to an effective control over diverse operational risks.
Independent The Company entrusts professional accounting firms for its annual financial audit. These audit firms
External Audit Firm are selected based on their qualifications, expertise and lack of conflicts of interest with the Company.
Annual Audit The audit results in recent years demonstrate the Company’s adherence to regulatory standards and
requirements set forth by relevant stakeholders.
Protecting the
Environment and
Promoting Green
Energy
Green Business
Tackling Climate Change
Green Operations
Yuneng Technology Co., Ltd. 2024 ESG Report Protecting the Environment and Promoting Green Energy
Green Business Energy Storage Systems
The Company closely follows industry trends and continuously enriches its product matrix to approach integrated
The Company focuses on the photovoltaic power generation and energy storage sectors, mainly engaged in the research, photovoltaic energy storage. Through independent innovation, the Company has successfully developed several residential
development, and industrialization of module-level power electronic technology in distributed photovoltaic power and commercial/industrial energy storage products, achieving the interconnected development of micro-photovoltaic +
generation systems and residential and commercial/industrial energy storage technologies. The Company provides energy storage, residential photovoltaic + energy storage, and commercial/industrial photovoltaic + energy storage.
comprehensive distributed PV + energy storage solutions, with microinverters at the core. Its key products and services APsystems Energy Storage Product Matrix
include microinverters and energy communication products, residential and commercial/industrial energy storage products,
intelligent disconnectors products, and distributed photovoltaic power plant services.
Balcony Micro-
In 2024, the Company continued to promote the application of advanced green technologies, accelerating the intelligent Photovoltaic +
green upgrade, and vigorously developing green business to support global sustainable and high-quality development. Energy Storage
The Company has launched the
new photovoltaic + energy storage hybrid
inverter EZHI, which adds a low-voltage
Microinverters battery to the micro-inverter. The product
combines the benefits of micro-photovoltaic
In the microinverter product sector, the Company has mastered several core technologies and continuously innovates, + micro-energy storage. With its ease of
installation, cost-effectiveness, and flexibility,
pioneering indusrty-first solution multi-module architecture microinverters, three-phase system microinverters, and
it meets the needs of balcony and DIY
microinverters that are compatible with 20A high-current, high-power modules. The Company has successfully developed application scenarios.
multiple series and models of micro-inverter products to meet global customer needs in residential, commercial, and
The ELS and ELT series products The Ocean series is engineered
industrial settings. are applied in the residential energy with high safety, high reliability, and
storage sector. These products offer the high e?ciency, making it suitable for
In the residential photovoltaic + energy storage scenario, the Company’s DS3 and DS3D series products offer high energy
safety advantages of low-voltage module use in higher power scenarios. During
density and strong reliability. In the commercial/industrial photovoltaic + energy storage scenario, the Company’s three- connection and low-voltage battery inte- the reporting period, the Company
phase quad QT2 and three-phase eight-module QT2D are specifically designed for three-phase grid connection, meeting gration. They also support self-consump- developed the Ocean5000L series, which
intelligent grid requirements such as adjustable power factors, high and low voltage, and high and low-frequency crossing. tion, backup power, and other operating offers higher energy density, solving the
modes. Additionally, they can be coupled challenges of standardized transporta-
Additionally, to enable module-level intelligent monitoring in distributed photovoltaic power generation systems, the with photovoltaic grid-connected inverter tion. It is ideal for large-scale grid-side
Company has developed energy communication products and monitoring analysis systems that work with micro-inverters, systems through AC coupling to form a and commercial/industrial projects. Commercial
Residential microgrid system. and
assisting users achieve module-level monitoring and efficient operation and maintenance. Industrial
Energy
Storage Energy
Storage
Case Photovoltaic Project for Community Public Libraries in Kentucky, USA
APsystems Energy Storage Project in 2024
The Company has partnered with a community public library
located in Russell County, Kentucky, in the central eastern
United States, to provide a smart photovoltaic solution for
the library. The installed capacity of this project is 87.2kW,
and photovoltaic modules have been installed on idle roofs
with varying heights and orientations, achieving maximum
utilization of roof resources. The micro-inverter QT2 used in the
power station has component level MPPT function to ensure
efficient power generation of the system.
The annual power generation of the power station is about
planting about 4,200 trees, injecting green and sustainable new Photovoltaic Project for Community Public Libraries in
momentum into the development of the library, and playing a Kentucky, USA
positive demonstration role in the transformation of the local
Jiangsu Binhai 200MW/400MWh Energy Storage Nanjing Nangang 61MW/123MWh Energy Storage
energy structure.
Power Station Power Station Project
Yuneng Technology Co., Ltd. 2024 ESG Report Protecting the Environment and Promoting Green Energy
Photovoltaic Project Construction
The Company advocates for “safe, efficient, and intelligent” solutions and actively promotes the establishment of
its technological innovation framework that tackles core technological challenges and transitions towards industrial
applications, upgrading and creating safer and more intelligent distributed photovoltaic solutions. The Company has
expanded globally, reaching over 100 countries and regions, lighting up every corner of the world with its micro-inverters
and empowering green development in factories, hospitals, universities, venues, and more.
Case Nanjing International Expo Center 25MW Photovoltaic Project
Meigang 50MW/100MWh Energy Storage Project Shaoxing Yushu 900kw/1843.2kwh Energy Storage The project is located in Jianye District, Nanjing City, Jiangsu
Project Province, with an installed capacity of 25MW. It is currently the
largest single unit capacity micro inverter photovoltaic project
in China, covering an installation area of over 150,000 square
meters. It fully utilizes the roof of the Nanjing International
Expo Center exhibition hall and is equipped with 6,442
APsystems micro-inverters QT2D and more than 40,000
high-efficiency photovoltaic modules. It is a vivid practice of
exploring cooperation between the exhibition industry and the
field of photovoltaic new energy.
The estimated annual power generation of the project is about
Rapid Shutdown Device 24.8 million kWh. The generated electricity can not only be
used for the Expo Center, but also sold to the power grid. The
expected annual economic profit can reach CNY 10 million, Nanjing International Expo Center Photovoltaic Project
The Company’s RSD products are devices that enable module-level rapid disconnection. The incorporation of APsystems’
greatly meeting the electricity demand of the exhibition hall
independently developed intelligent disconnector ASIC specialized chip integrates complex control logic and algorithms. and injecting strong power into the operation of various
This design simplifies the system, reduces the number of components, and achieves high integration, reliability, and functions such as exhibitions, conferences, accommodation,
performance. catering, events, and entertainment.
Case 15MW Residential Project in Texas, USA Case Shandong Feicheng Refined Salt Factory 5.04MW Micro-Inverter BIPV Project
The residential photovoltaic project is located in Texas, USA, The project is located in Feicheng City, Tai'an City, Shandong
with a total capacity of 15MW, covering 3,200 residences and Province, with a total installed capacity of 5.04MW. It is
phase inverter, and with the support of the component level BIPV photovoltaic modules, which is a vivid practice to enhance
disconnector RSD-D-20 from APsystems, the project fully the efficiency of industrial integration and development.
complies with the rapid shutdown requirements of the National The project uses a 20A high current micro inverter and BIPV
Electrical Code NEC 2020 690.12 in the United States. high-efficiency modules to achieve integrated installation
RSD-D-20 is the industry's first component level disconnector of photovoltaic buildings in areas such as color steel tile
product with an input current of 20A, which meets the roofs, cement roofs, carpor ts, and facade walls. This
adaptation needs of high-power components on the market. It not only improves the waterproof and thermal insulation
is small in size, light in weight, and easy to install, and can be performance of the building roof, extends the service life of
widely used on residential roofs and commercial roofs, providing building components, but also balances power generation
Residential Photovoltaic Project in Texas, USA
a guarantee for the safety of photovoltaic power plants. and structural stability; Moreover, with the support of micro-
inverters, the installable area has been maximized. The Shandong Feicheng Refined Salt Factory Micro Reverse
BIPV Project
estimated annual power generation of the project is about 5
million kWh, equivalent to planting 200,000 trees. It is of great
significance for promoting the low-carbon transformation
and development of salt factories and strengthening regional
environmental protection.
Yuneng Technology Co., Ltd. 2024 ESG Report Protecting the Environment and Promoting Green Energy
Impacts, Risks, and Opportunities Management
Tackling Climate Change
The Company believes that the challenges and opportunities brought by climate change are crucial to its future
development. It has proactively incorporated climate action into its overall strategy, developing a risk management process
Since its establishment, APsystems has been actively responding to global climate change and advancing the goals of
that regularly identifies, assesses, prioritizes, and monitors climate-related risks and opportunities, helping to enhance the
carbon peaking and carbon neutrality. Upholding the mission of “Driving a Zero-Carbon Future, Co-Creating Intelligent
climate adaptability of its strategies and business.
Living”, the Company has actively established and improved its climate change response management system, deploying
climate-related risk management, innovating green products, and implementing energy-saving and carbon-reduction
measures, all contributing to the green energy transition. APsystems Climate-Related Risk and Opportunity Management Process
Governance
Identification Assessment and Prioritization Monitoring
The Company places great emphasis on climate-related management. As the highest governing body, the Board of Regularly identify climate-related Analyze the likelihood and impact Regularly monitor climate-related
Directors is responsible for overseeing the effective execution and implementation of climate change-related strategies risks and opportunities that may o f c l i m a t e - re l a t e d r i s k s a n d m a n a g e m e n t m e a s u re s a n d
and decisions. In 2025, the Company adjusts the original Strategic Committee of the Board of Directors to the Strategic have a significant impact on the opportunities, and prioritize based assess their execution to ensure
and Sustainable Development (ESG) Committee of the Board of Directors to further focus on the impacts of climate-related Company’s operations or develop- on these dimensions. timely responses to climate-
ment strategy in the short, medi- related risks and the capture of
risks and opportunities on the Company’s business, promoting the Company’s transition toward greener, lower-carbon, and
um, or long term. opportunities.
more sustainable development. Each department of the Company, leveraging its professional strengths, provides technical
support for the decision-making of the Board of Directors to ensure the coordinated advancement of climate change-
related work. The Company has integrated climate change action into various aspects of its daily operations and business activities. At
the operational level, the Company actively adopts energy-saving and carbon-reducing measures, strengthens employees’
Strategy energy-saving awareness, and promotes the efficient use of energy. At the business level, the Company continues to
advance the application of advanced green technologies, accelerating intelligent green upgrades. By the end of 2024, the
In 2024, the Company referred to the International Financial Reporting Sustainability Disclosure Standard S2 — Climate-Re- Company’s module-level power electronic products had been sold to 156 countries and regions worldwide, with a total
lated Disclosures (IFRS S2) for the definition of climate-related risks and opportunities. Based on its business activities, the shipment of over 6 GW, operating smoothly in approximately 540,000 photovoltaic systems globally. The total power
Company identified significant climate-related risks and opportunities and analyzed the value chain processes and financial generation reached nearly 7 TWh, equivalent to a reduction of about 8.36 million tons of CO2 emissions.
impacts associated with these risks and opportunities. Based on this, the Company developed climate change-related
strategies, driving product upgrades through technological innovation and promoting energy-saving, emissions reduction,
and green transformation to ensure the long-term sustainable development of the business. Indicators and Targets
The greenhouse gas emission sources involved in the Company include direct and indirect emissions during its operations
APsystems Climate-Related Risk and Opportunity Analysis
(such as gasoline used in Company vehicles and purchased electricity), as well as indirect emissions in the value chain
Risk/Opportunity Affected Value Chain (such as emissions from employee business travel). The Company aims to control its own greenhouse gas emissions
Specific Description Financial Impact
Type Processes to contribute to global temperature control goals, continuously monitoring the performance related to greenhouse gas
Increased frequency and intensity of extreme weather events Upstream value chain, emissions and establishing a solid data foundation for promoting the Company’s sustainable, high-quality development.
Increase in operating
Physical Risks (such as typhoons, ?oods, and high temperatures) may result in own operations, down-
costs APsystems Tackling Climate Change Indicators
equipment damage, supply chain interruptions, etc. stream value chain
There are ongoing introduction of carbon emission and environ-
mental protection-related policies and regulations both domes- Indicator Unit Progress in 2024
Policy and Regulatory Own operations, down- Increase in operating
tically and internationally. If the Company fails to comply with
Risks stream value chain costs Total Greenhouse Gas Emissions (Scope 1 and Scope 2) Tons of CO2 equivalent 932.19
these regulations in a timely manner, it may face risks such as
market access restrictions or supply chain adjustments.
Scope 1 Greenhouse Gas Emissions Tons of CO2 equivalent 41.01
As more customers require sustainable products, if the Company
Own operations, down- Increase in operating
Market Risks fails to develop products that meet customer needs in a timely Scope 2 Greenhouse Gas Emissions Tons of CO2 equivalent 891.19
stream value chain costs
manner, it may face a decline in market competitiveness.
With the increasing demand for low-carbon products like pho- Scope 3 Greenhouse Gas Emissions Tons of CO2 equivalent 295.50
Product and Service tovoltaics and energy storage, the Company can strengthen its Own operations, down- Increase in operating
Greenhouse Gas Emissions per CNY 10,000 Revenue (Scope Tons of CO2 equivalent
Opportunities R&D investments in photovoltaic inverters, promote related prod- stream value chain revenue 0.0053
ucts, and expand its market. 1 and Scope 2) /CNY 10,000
Yuneng Technology Co., Ltd. 2024 ESG Report Protecting the Environment and Promoting Green Energy
To prevent environmental-related risk events, the Company conducts regular monitoring of pollutant emissions. Since its
Green Operations establishment, the Company has not encountered any environmental pollution incidents.
In 2024, the Company upholds the philosophy of “promoting environmental awareness and advocating for a green
lifestyle,” actively implementing practices such as “conserving water, saving energy and reducing paper usage” in its daily
Environmental Compliance Management office operations. It integrates green operations into daily office operations and commits to developing alongside the
environment.
The Company places high importance on environmental protection and adheres to a sustainable development path
focused on environmental protection and low carbon. It strictly complies with laws and regulations such as the Environ-
mental Protection Law of the People’s Republic of China and the Law of the People’s Republic of China on Environmental Im- Water Resources Utilization
pact Assessment, enhancing its environmental management capabilities. During the reporting period, the Company did not
The Company’s water resources primarily sourced from municipal water supply and are used in office operations. The
face any administrative penalties or lawsuits due to violations of environmental laws and regulations.
Company strictly adheres to laws and regulations such as the Water Law of the People’s Republic of China, continuously
The Company adopts a production outsourcing model and pays attention to environmental protection in its R&D and strengthening its water resource management. The Company maintains and manages water-using equipment on a daily
business management locations. It is not part of the industries with high pollution levels and has a minimal environmental basis to prevent leaks, and educates employees to develop water-saving habits, ensuring that faucets are turned off
impact. During the reporting period, The Company’s main production outsourcing facilities have achieved ISO 14001 promptly after use to avoid running water.
certification for environmental management systems.
Energy Utilization
Certificate of Environmental Management System for Manufacturing Outsourcing Facilities
The types of energy primarily used in the Company’s daily operations include gasoline for official vehicles and purchased
electricity. The Company strictly adheres to laws and regulations such as the Energy Law of the People’s Republic of China
and the Energy Conservation Law of the People’s Republic of China, implementing various energy-saving measures to ensure
the efficient use of energy in all operational activities.
APsystems Key Energy-Saving Actions in 2024
Regulating Air Conditioning Use
In the summer, air conditioning may be turned on when the outdoor temperature reaches 32°C or higher, and in the winter, air
conditioning may be used when the outdoor temperature drops to 4°C or lower. Strict adherence to air conditioning temperature
settings is required: no lower than 26°C in summer and no higher than 20°C in winter.
When using air conditioning, the office doors and windows must be closed to ensure the effectiveness of the air conditioning.
TDG Technology Jiaxing DBG Technology If ventilation is needed, the air conditioning should be turned off, and windows and doors should not be opened while the air
conditioner is running.
If leaving the office for an extended period (more than 30 minutes) or when the office is unoccupied, the air conditioning
should be turned off. For shared spaces like meeting rooms, air conditioning use is managed under the principle of “the user
is responsible,” meaning the person who used the air conditioning is responsible for turning it off”. The practice of “turn off the
machine when leaving” must be followed.
Optimizing Equipment Use
The use of electrical equipment such as computers and printers should be properly managed. When the power is not in use after
work or during extended periods of inactivity, it should be turned off to reduce standby power consumption.
Utilizing Natural Lighting
The lighting system uses energy-saving lamps. During office hours, natural light should be fully utilized. When natural light is
Vietnam DBG Technology Huizhou Huazhi
insufficient, methods such as turning on only some lights should be used to reduce electricity consumption. Lights should be
turned off when leaving the office after work or for extended periods, avoiding unnecessary lighting.
Yuneng Technology Co., Ltd. 2024 ESG Report Protecting the Environment and Promoting Green Energy
Green Office Practices Waste Management
APsystems strives to make “green” the predominant theme in its operations. Ensuring the quality of daily work, it is The waste generated by the Company’s operations mainly include household waste, obsolete equipment and electronic
committed to minimizing the consumption of disposable office supplies. Through strategies such as double-sided printing, devices, hazardous materials, etc. The Company’s office waste management adheres to the principles of waste reduction,
transitioning to electronic documents whenever possible, and formulating a thoughtful consumables procurement plan, the resource recovery and environmental safety. Through initiatives such as waste segregation and recycling, the Company
Company actively reduces material consumption and effectively implements green office practices. reduces waste generation, promotes the recycling of resources, and contributes to sustainable development.
APsystems Waste Segregation and Disposal in 2024
APsystems Key Green Office Practices in 2024
Waste Segregation Disposal Standardized Segregation and Disposal
Promoting Paperless Office
Display waste segregation guidelines and promo- Household Waste: Collected daily at scheduled times
The Company promotes the full use of electronic office tools, encouraging employees to modify documents on computers and tional slogans in office areas, cafeterias, and other by the sanitation Company, typically disposed of via
make full use of OA processes and other electronic tools. If a paper version is necessary, double-sided printing and copying are places. land?lling or incineration.
required, and the printing and distribution of documents and materials should be strictly controlled. Reasonably equip waste segregation containers and Obsolete Equipment and Electronic Wastes: Collected
guide employees to strictly follow waste segregation and handled by a qualified third-party recycling ser-
Encouraging the Use of Green Office Supplies guidelines and disposal procedures, focusing on vice. The equipment disposal process involves ?lling
plastic pollution control. out an OA equipment disposal form, which is con-
?rmed by the Finance Department before notifying the
The Company promotes the use of eco-friendly recycled paper and other recycled products, restricts the use of disposable office storage and ?nance teams to assist with the disposal.
supplies such as paper cups and plastic bags, and bans the use of non-biodegradable disposable plastic products. For visitors Metal iron, aluminum, and copper-containing circuit
and meetings, ceramic or glass cups should be used. boards are separated and categorized, and the circuit
boards are processed through physical crushing.
Hazardous Waste: Handled by a qualified third-party
recycling service.
Encouraging Waste Segregation Displaying “Save Paper” Signs to Encourage
Employees to Minimize Paper Waste
Innovation-Driven
Empowerment
of Quality
Management
R&D Innovation
Product Quality Management
Customer Relationship Management
Data Security and Customer Privacy Protection
Supplier Management
Yuneng Technology Co., Ltd. 2024 ESG Report Innovation-Driven Empowerment of Quality Management
R&D Innovation
Indicators and Targets
Targets: The Company aims to build a complete, systematic, and efficient R&D innovation system that gathers industry
The Company adheres to the core concept of innovation-driven development, with a foundation in global energy storage elites, creates top-tier teams, stimulates innovation potential, and enhances the Company’s innovation capabilities and core
competitiveness.
system installations and applications. It continuously deepens its technical research in the energy storage field, enriching
Indicators: In 2024, the Company’s total R&D investment amounted to CNY 94,059,100, accounting for 5.31% of operating
and improving the product portfolio for residential energy storage systems and developing products tailored to the needs of
revenue. The Company employed 266 R&D personnel, making up 50.00% of the total workforce.
different countries. The Company has built a complete and efficient R&D innovation management system.
APsystems R&D Innovation Management System
Governance R&D Innovation Governance Structure and Process
System: Internal management systems such as the Patent Application and Reward/Penalty Measures are established. The Company places high importance on R&D innovation. The Zhejiang APsystems Microinverter Research Institute has an
Governance Structure: The Company has established the Zhejiang Province APsystems MicroInverter Research Institute,
Experts Committee, an Office, a Design Department, EMA, a Technical Department, and an Operations Department. These
Zhejiang Enterprise Technology Center, and Zhejiang High-Tech Enterprise Research and Development Center. departments work collaboratively to form a comprehensive R&D innovation governance structure.
APsystems’ R&D Innovation Governance Structure
Strategy
CTO
Impacts, Risks, and Opportunities:
Impact: The Company continuously strengthens its R&D innovation capabilities in various ways, accelerating product upgrades
and iterations, and enriching the product matrix to provide safer, more efficient, and intelligent clean energy solutions for global R&D Center
users.
Risks:
Technology Upgrade Risk: The photovoltaic and renewable energy industries face continuous pressure for technology
Product Management
upgrades and product development. If the Company fails to achieve timely technological innovation, it may risk falling behind Design Department Technical Department EMA
Department
technologically.
Core Technical Talent Loss Risk: The module-level power electronic industry is technology-intensive. If the Company loses
Micro-inverter Structure design AI & Design tools Product management
core technical R&D talent or cannot quickly recruit experienced technical staff based on production and operational needs, its
technological upgrades and product innovations may be affected.
Opportunity: Micro storage & RSD Certification APP & DI digitization Project management
Product and Service Opportunity: By continuously developing and launching industry-leading products and services, the
Company can attract more users and capture a larger market share. Household storage & ECU Energy storage engineering Platform & IT
Response Strategy: The Company focuses on product layout in the photovoltaic + energy storage integration sector. By
continuously making significant R&D investments, it deepens technological innovation and further enriches its product line to
Technical support
meet the green energy storage demands in various distributed scenarios.
The Company has established a market-driven independent research and development model, focusing on R&D innovation
Impacts, Risks, and Opportunities Management in hardware circuit topology, software control algorithms, communication and big data processing technologies. This
approach has led to successful development of module-level power electronics products such as micro-inverters and
The Company regularly monitors market demand and conducts competitive product analysis. Based on user needs, it identifies
intelligent disconnectors, which have been commercially applied in distributed photovoltaic power generation systems and
product research and development needs and carries out targeted R&D work. smart grids.
The Company vigorously promotes R&D innovation, actively engages in industry-academia-research collaboration, and
strengthens industry exchanges. Additionally, it has established a robust intellectual property protection system, a strict Furthermore, the Company adopts a project-based R&D approach that integrates market feedback and suggestions from
confidentiality system, and an effective incentive mechanism, laying a foundation for technology protection. various departments. Projects undergo technical feasibility analyses before initiation, and comprehensive planning during
design reviews ensures optimal levels of product performance, quality, cost-effectiveness and R&D efficiency.
Yuneng Technology Co., Ltd. 2024 ESG Report Innovation-Driven Empowerment of Quality Management
APsystems Research and Development (R&D) Process
Start R&D Project Initiation Design Input Design Input Review Design Output The Company is recognized as a “National High-tech Enterprise,” a member in the fifth batch of the
enterprise list for the Photovoltaic Manufacturing Industry Standard Conditions by the Ministry of
Industry and Information Technology, and a national “Specialized and New” SME.
Design Development
End R&D Confirmation Product Prototyping Design Output Review
Verification
Additionally, in the 2024 evaluation of the Zhejiang Province Enterprise Technology Center, the
Company received a “Good” rating. APsystems was also certified as a “Zhejiang Export Brand” in 2024.
R&D Achievements and Honors
The Company insists on independent innovation and adheres to its mission of “Driving a Zero-Carbon Future, Co-Creating
Intelligent Living.” It is committed to becoming the most efficient safe and clean energy converter. Under this vision,
the Company’s products and services primarily focus on improving core technologies related to safety, efficiency, and
intelligence. The Company has pioneered several industry-first innovations, including multi-unit architecture micro-inverters,
three-phase system micro-inverters, and micro-inverters compatible with 20A high-current, high-power modules.
APsystems Core Advanced Technologies
Multi-Unit Micro-inverter Design Technology
By adopting independent input and independent sampling circuits for multiple modules, the Company retains the advantages
of micro-inverters with independent MPPTs (Maximum Power Point Tracking). By sharing auxiliary power, main control
modules, communication modules, DC-DC power modules, DC-AC modules, and filters, the number of key components is
reduced. The design of optimized logic control circuits and control algorithms enables the operational synergy of multiple
independent inputs. Furthermore, the Company keeps pace with the development of artificial intelligence, actively exploring the deep integration
This technology significantly reduces the cost per watt of the micro-inverter, enhancing product integration, reliability, and of AI with power electronic technology. AI is applied to empower the Company’s photovoltaic + energy storage products,
installation efficiency. providing AI-powered intelligent energy services and accelerating the construction of an intelligent energy ecosystem.
APsystems Applying AI Technology to Empower Photovoltaic + Energy Storage Products
Three-Phase Balanced Output Grid-Connected Micro-inverter Control Technology
Home Energy Management
By using high-frequency DC-DC control design and secondary ripple innovation control for DC-AC, the single micro-inverter
The Company has developed the “BESS AI” model, using deep learning algorithms to deeply analyze historical data and capture
can perform three-phase grid connection. The micro-inverter can directly be used in three-phase grid systems. Through the
the patterns of photovoltaic power generation. Under this model, the system can comprehensively evaluate the matching
integration of balanced current adjustment control, high-speed digital control, and improved topology control for three-phase
between next-day photovoltaic power supply and household electricity demand, while simultaneously planning battery charge
micro-inverters, the single micro-inverter can achieve balanced three-phase output and protection functions, solving the
and discharge strategies, significantly enhancing the economic benefits of home energy management.
imbalance issue that single micro-inverters face in three-phase grid systems.
This technology improves system reliability, reduces system costs, and fills a gap in the industry for three-phase micro-
Enterprise Energy Management
inverters.
The Company has obtained the sales qualification from the Jiangsu Electric Power Trading Center. Through the “Power
Spot Trading Decision Support Platform,” the Company integrates big data and AI technology to achieve regional
electricity price forecasting and industry load forecasting, providing a complete set of intelligent charging and discharging
High-Current Micro-inverter Control Technology
solutions for electricity-consuming enterprises.
By applying transformer and power device upgrades, the inverter efficiency is improved. Additionally, new DC boost circuit
topologies are applied, along with improved control algorithms, to support high-current input and high-power conversion. The Customer Service Improvement
upgraded full-bridge control topology allows for larger current inputs and larger current conversions.
The Company has developed the “AP Designer” design tool, which integrates advanced computer vision and deep learning
The micro-inverters designed with this technology meet the industry’s demand for the new generation of high-power modules technologies. It can quickly and accurately provide comprehensive analysis of rooftops, trees, and obstacles for photovoltaic
with large current applications, supporting a maximum working current of 20A. station design, enabling intelligent one-click design.
Yuneng Technology Co., Ltd. 2024 ESG Report Innovation-Driven Empowerment of Quality Management
Industry-Academia-Research Collaboration APsystems Intellectual Property List in 2024
The Company continuously engages in industry-academia-research collaboration, actively seeking strategic collaborations
with domestic and international research institutions, higher education establishments and global enterprises. It is Applications (pieces) Granted (pieces) Applications (pieces) Granted (pieces)
dedicated to reinforcing its technical capabilities through continuous exploration and the integration of cutting-edge
Invention Patents 28 7 206 91
technologies and research outcomes.
Utility Model Patents 24 11 98 42
In 2024, the Company partnered with Nanjing University of Aeronautics and Astronautics to carry out projects such as
Design Patents 5 2 28 23
“Three-Phase Energy Storage System Control Technology and Simulation and Its Hardware Design Development” and
“Photovoltaic Micro-inverter High-Frequency Planar Transformer and Planar Power Inductor Technology Development,” Software Copyrights 6 2 32 32
among others. These projects injected strong impetus into the Company's research and development field and
Total 63 22 364 188
enhancedcing its technical strength.
Intellectual Property Protection
The Company places a high priority on protecting intellectual property and strictly adheres to laws and regulations such
as the Copyright Law of the People’s Republic of China, the Trademark Law of the People’s Republic of China, and the Patent Propelling Industry Development
Law of the People’s Republic of China. It has established internal management systems, including the Patent Application
The Company, leveraging its advantages in R&D innovation, product certification, and a global marketing network, has built
and Reward/Penalty Measures, to encourage and protect innovative achievements. The Company has a significant number
a high level of brand recognition and market acceptance in the photovoltaic power generation and renewable energy sector.
of intellectual property rights in areas such as power electronics, inverter control, high-speed digital circuits and control,
The Company has obtained over 200 domestic and international certification certificates or corresponding listings.
embedded software, wireless and power line communication, and big data cloud platforms.
The Company continuously standardizes intellectual property management and provides intellectual property training to
employees to enhance their awareness of the intellectual property protection. Furthermore, the Company advocates the
By the end of 2024, the Company had engaged in formulating 26 national, industry, or group standards. Notably,
importance of intellectual property protection to clients and partners through various channels such as seminars and
discussions. The Company took the lead in drafting the PV grid-connected micro-inverter group standard.
The Company participated in drafting the Technical Requirements for Micro-Photovoltaic Energy Storage Systems, which covers
the basic requirements, system architecture, performance requirements, functional requirements, and safety requirements
Intellectual Property Protection Measures for micro-photovoltaic energy storage systems.
The Company contributed to the creation of the Technical Specification for Photovoltaic Inverter RSD (Rapid Shutdown) System
and the General Requirements for Photovoltaic Inverter RSD (Rapid Shutdown) System, which include functional requirements,
Unified declaration, management, and maintenance of intellectual property, including patents, software copyrights and
testing methods, and safety protocols. Notably, the risk areas are defined, with direct current (DC) voltage > 600V considered
trademarks, with a particular focus on promptly filing for innovative points and technological achievements resulting from the
a high-risk zone, where there is a higher risk of electric shock and potential severe damage to personnel and equipment. DC
Company’s product development and technological innovation activities.
voltage between 120V and 600V is defined as a risk zone, requiring various safety protection measures. The publication of
Commitment to non-infringement of others’ property rights, refraining from using patented technologies owned by others, these standards supports the safe operation of photovoltaic systems and promotes the advancement of industry safety
manufacturing, using, selling, or disseminating counterfeit products, and avoiding counterfeiting or imitation of others’ standards.
trademarks, product identifiers and designs.
The Company participated in drafting standards such as the General Technical Specifications for Photovoltaic Grid-Connected
Vigorous opposition to illegal activities that infringe upon others’ property rights, actively reporting any infringements involving Micro-inverter Systems, the Functional Requirements for Photovoltaic Micro-inverter Cluster Control Systems, Technical
property rights, and cooperating actively with governmental efforts to restrain, investigate and combat property rights Requirements for Photovoltaic Micro-inverter, and the Technical Requirements for Photovoltaic Inverters, promoting the healthy
violations.
development of micro-inverters and the photovoltaic industry as a whole.
Participation in public awareness campaigns for intellectual property rights protection, collaborating with stakeholders across
society to promote the healthy and sustainable development of the intellectual property industry.
Implementation of Intellectual Property and Confidentiality Agreements, as well as Non-Compete Agreements, with employees to
In 2024, the Company actively participated in various exhibitions and hosted industry exchange meetings, introducing and
define strict stipulations regarding confidentiality, intellectual property, and post-resignation non-compete conditions.
promoting its products globally to accelerate industry development.
The Company continues to encourage employee inventiveness and promote the application of technological achievements.
As of the reporting period end, the Company held 188 authorized intellectual property rights. During the reporting period,
the Company obtained 22 newly authorized intellectual property rights.
Yuneng Technology Co., Ltd. 2024 ESG Report Innovation-Driven Empowerment of Quality Management
Product Quality Management
Case Participation in the SNEC Exhibition and Launch of New Generation Products
In June 2024, the 17th SNEC International Photovoltaic Power
Generation and Smart Energy (Shanghai) Conference &
To adapt to the fierce competition in the market economy, build a good corporate image, enhance product credibility, and
Exhibition was held at the National Exhibition and Convention
Center (Shanghai). APsystems presented its comprehensive continually meet customer demands, the Company strictly adheres to laws and regulations such as the Product Quality Law
photovoltaic + energy storage + charging smart solutions and of the People’s Republic of China. In combination with customer requirements and the Company’s actual situation, a quality
launched the new generation of hybrid micro-inverters for management system has been established. During the reporting period, the Company did not experience any major safety
photovoltaic + energy storage, EZHI, showcasing its notable or quality incidents related to products and services.
advantages in easy installation, extreme safety, and intelligent
flexibility.
During the exhibition, APsystems held several technical sharing APsystems Product Quality Management System
sessions at its booth, introducing micro-inverters, energy Governance
storage, and other complete photovoltaic + energy storage
+ charging solutions, aiming to discuss the development of APsystems Participated in the 2024 SNEC Exhibition
photovoltaic + energy storage + charging with the industry and System: The Company has developed internal management systems, including the Quality Management Manual, the Quality
advance toward a zero-carbon future. Assurance Management Procedures, the Corrective and Preventive Action Control Procedures, the Non-Conforming Product Control
Procedures, and the Product Recall Management Procedures.
Governance Structure: The Company has established a quality management governance structure. The Quality Supervisor
is directly responsible for product quality, supervised by the top management CEO and monitored by the Vice President of
Case Successfully Hosting the 2024 China First Balcony Photovoltaic Inception Exchange Conference Operations to oversee quality management work.
In December 2024, the Company hosted the 2024 China Strategy
First Balcony Photovoltaic Inception Exchange Conference in
Dezhou, Shandong, with the theme “Balcony Photovoltaics: The
Impacts, Risks, and Opportunities:
Future is Here.” Representatives from photovoltaic companies,
distributors, industry media, and other sectors gathered to Impact: The Company strictly controls product quality to ensure the stability and reliability of core products, effectively
discuss cutting-edge technologies, market trends, and policy maintaining grid stability and ensuring user safety.
directions, and to explore the development prospects and Risk:
practical applications of balcony photovoltaics. Product Quality Dispute Risk: The Company’s micro-inverters, intelligent disconnectors, and other module-level power
electronic products directly impact user safety and experience. If large-scale product quality issues arise due to uncertain or
uncontrollable factors, the Company may face legal, reputational, and financial risks.
Opportunity:
Product and Service Opportunity: As global demand for renewable energy devices continues to increase, the Company can
Conference Response Strategy: The Company upholds the quality policy of “technological innovation, continuous improvement, excellent
quality and customer satisfaction”, closely collaborating with outsourcing facilities to control both quality and processes. It
ensures full monitoring of key processes in each step of outsourcing production, providing exceptional products and services
to customers.
Impacts, Risks, and Opportunities Management
The Company has established a comprehensive product lifecycle management process and strictly enforces product quality
management measures to ensure product responsibility.
Indicators and Targets
Targets: The Company aims to achieve a finished product qualification rate of over 99% and a timely delivery rate of 100%.
Indicators: In 2024, the Company’s finished product qualification rate reached 99.99%, and the timely delivery rate reached
Yuneng Technology Co., Ltd. 2024 ESG Report Innovation-Driven Empowerment of Quality Management
During the reporting period, the management system for the design, manufacturing, and sales of the Company’s
new energy generation equipment and key equipment was certified under the ISO 9001 Quality Management System
Product Lifecycle Management
Certification. The Company upholds the principle of “zero-defect production, zero-acceptance of defects and zero-delivery of defects.”
To achieve this, the Company has strictly implemented the Quality Assurance Management Procedures, the Correc-
tive and Preventive Action Control Procedures, and other internal management systems. A quality inspection process
has been established, with dedicated quality inspection personnel. These procedures ensure that every micro-inverter
product undergoes stringent quality inspection processes, including Automated Optical Inspection (AOI), Functional
Testing (FCT), and Aging Testing. Additionally, management methodologies such as “Kanban Management,” “5S
Principles” and “Six Sigma Principles” are employed to further enhance product quality and reliability.
Full Lifecycle Quality Management Process
Management Process
System Planning MP1 Performance Measurement & Improvement Analysis MP2
Product Realization
Warehouse Management
Incoming Quality Control
Customer Requirement
Quality Management System Certification
Design Development C2
Material Preparation C3
Customer Satisfaction
Product Realization C3
Product Protection C3
Production/Material
Contract Review C1
Product Monitoring
Measurement S2
Input Output
Purchasing S5
Planning C3
Delivery C3
Service C3
C3
S2
Product Quality Management Governance Structure
In an effort to ensure the smooth implementation and effective operation of the quality management system, the Company
has established a robust governance structure for quality management. At the top of this structure is the CEO, who serves
as the highest management authority overseeing the quality management system. The Vice President of Operations is
Supporting Process
designated as the primary representative of the quality management system, responsible for coordinating, monitoring and
driving quality management initiatives across the organization. Additionally, the Quality Supervisor plays a crucial role in
providing in-depth management and guidance in key areas such as quality assurance, supplier quality, process quality and Human Document the
Nonconform- Supplier Environmental Facility Tooling
Gauge Man- Resource Information S3
quality control. ing Product Manage- Management Management Management
agement S2 Management Document Record
Control S1 ment S5 C3 C3 C3
S4
APsystems Quality Management Governance Structure
SP MP COP
QMS Top
Management CEO
QMS Management
Representative Vice
President of Operations Quality Control Process for New Product Production
Quality Supervisor
New Data Trial
Trial Production Compilation Production
Product Preparation Quality Data DFM
Production Process and Summary
Launch Initiation Recording Output
Startup Tracking Analysis Meeting
Meeting
Quality Assurance Supplier Quality Process Quality Quality Control
Yuneng Technology Co., Ltd. 2024 ESG Report Innovation-Driven Empowerment of Quality Management
The Company focuses on core areas such as research and development, design, and market sales. Except for some self-
manufactured products, most of the production is conducted through outsourcing. The Company follows a rigorous
Product Quality Management Measures
process to control the product quality in outsourcing production. It provides outsourcing partners with part drawings and The Company monitors and measures the product characteristics based on the Product Monitoring Measurement Control
proprietary control algorithm software that is encrypted. Outsourcing partners then proceed with hardware assembly and Procedures to verify that the product quality meets the specified requirements.
processing based on the provided part drawings, followed by transferring the control algorithm software into the hardware
through IC programming. For purchased products, upon arrival at the factory, the products are subject to incoming quality control standards. For
outsourced products, the outsourcing party conducts non-destructive 100% routine inspections of the finished products.
At the same time, the Company utilizes advanced production management technologies. In line with the Product Identifi- For non-outsourced products, the production team conducts non-destructive 100% routine inspections of the finished
cation and Traceability Management Procedure, through automated Shop Floor systems control and unique UID numbers, products. For products that fail inspections, the quality personnel confirm them and process them according to the relevant
every product’s production records are traced from production to warehousing, ensuring complete traceability throughout provisions of the Non-Conforming Product Control Procedures.
the process. All testing data is automatically uploaded to the database, and critical processes are conducted using
automated testing equipment, allowing real-time monitoring by management personnel and effectively mitigating the risk The Company’s testing personnel perform confirmation inspections on at least two units of certified products based
of missed tests and reducing the impact of human factors on quality. on batch production. The inspection items are carried out according to the confirmation inspection standards. Unless
approved by the customer, products and services shall not be released or delivered before all specified activities are
completed.
APsystems Traceability System
Product Recall Mechanism
The Company has established a complete product recall process based on the Product Recall Management Procedures and
the Non-Conforming Product Control Procedures to recall products with batch quality issues, ensuring that affected finished
products are fully controlled. In 2024, the Company did not experience any product recall incidents.
Products that may trigger the product recall procedure include the following situations
Production Management System DI Management System
Internal testing by the Company finds that batches of products affected by non-conforming products have been delivered, and
the non-conformance is irreversible;
Major customer complaints;
Non-conforming products discovered by government or other regulatory inspections;
Other changes (including technical, legal, regulatory, and emergency incidents) that affect the quality or safety of delivered
products.
EMA System After-Sales Management System
Yuneng Technology Co., Ltd. 2024 ESG Report Innovation-Driven Empowerment of Quality Management
Product Recall Flowchart
Recall Flowchart
Customer Relationship Management
Sales, After-Sales,
Purchasing, Pro- The Company is guided by the mission of “delivering optimal products and exceptional services to our customers.” It strives
Design, Technolo- Recall Review Order Processing, Logistics, Order
Logistics duction, Quality,
gy, Operations Team BU (Business Follow-up, BU to win customers’ trust and support while building a comprehensive customer relationship management system that
D Testing
A B Unit) F
E promotes long-term, stable development.
C
Start
APsystems Customer Relationship Management System
Governance
Analysis
System: Internal systems such as the After-Sales Operations Management Standards are established.
Recall Approval Governance Structure: A three-tier technical service governance structure involving “R&D Center/Technical Department -
Technical Support - System Application Testing, After-Sales Technical Support, Pre-Sales Technical Support” is created.
Customer
Notice of Recall
Strategy
Warehouse
Collection Impacts, Risks, and Opportunities:
HQ Ware-
house/External Impact: The Company provides high-quality services to customers, ensuring their rights and increasing customer trust.
Warehouse/ Risk:
Outsourcing
Factory/Suppli- Outsourcing Market Risk: If the Company neglects customer relationship management, it may lead to reduced customer trust, customer
er Warehouse
Supplier Shipment to
Opportunity:
Rework Domestic/
Customers cooperation between customers and the Company.
Response Strategy: The Company focuses on product technological innovation and market demand, establishing and
BU Ship to
Customer
End Impacts, Risks, and Opportunities Management
The Company actively practices responsible marketing, establishes an after-sales service response mechanism, regularly
conducts customer service training, and assesses the effectiveness of these efforts through customer satisfaction surveys to
implement customer relationship management.
Indicators and Targets
Targets: The Company aims to maintain good customer relationships, ensuring its products and services consistently
meet customer needs, improve service quality and customer satisfaction, and achieve an annual comprehensive customer
satisfaction rate of 80%.
Indicators: In 2024, the Company’s regional customer satisfaction has met the target.
Yuneng Technology Co., Ltd. 2024 ESG Report Innovation-Driven Empowerment of Quality Management
Customer Service Governance Structure Customer Service Training
The Company places great importance on customer service quality. To diverse customer needs and establish long-term
Upholding the ethos of genuine customer care, the Company prioritizes enhancing customer satisfaction and fostering
stable partnerships with clients, the Company regularly conducts specialized customer service training programs. These
close collaboration. This effort is guided by cultivating a dedicated service team spanning marketing, sales, order tracking
programs are delivered through both in-person and remote training formats, aimed at deepening employees’ understanding
and technical support. Furthermore, the Company’s priorities on product technological innovation driven by market
of service principles.
demands has enabled us to establish a globalized sales and service network.
In 2024, the Company conducted 285 customer service training sessions, with a total duration of 672 hours, covering all
APsystems Technical Service Governance Structure employees. These trainings are aimed at encouraging every employee to internalize customer satisfaction as part of their
actions, improving service efficiency and customer satisfaction, while jointly building an exceptional service brand.
R&D Center/Technical Department
APsystems Customer Relationship Training Formats
Technical Support Conducted offline training through exhibitions, presentations, and other events based on customer needs
In-person Training
and sales requirements.
Conducted official website registration - periodic training, and remote training through live streaming,
Remote Training
public account and other channels.
System Application Testing After-Sales Technical Support Pre-Sales Technical Support
Product System Application Provide Technical Support to Customer Requirement Analysis
Testing Customers
Technical Solution Design
Software Release Testing System Fault Diagnosis and
Pre-Sales Feasibility Evaluation
Troubleshooting
Issue Recording, Feedback, and
Training for International Col-
Tracking Issue Collection, Recording,
leagues and Customers
and Feedback
Preparation of Product and Pre-
On-Site Training
Sales Materials
Writing Training Materials and
Technical Documents
Conducting Customer Service-Related Training
After-Sales Service Response Mechanism
In order to provide efficient and professional complaint handling services and ensure timely responses and satisfactory
Responsible Marketing
solutions when customers encounter issues, the Company standardizes the after-sales service process, actively addresses
inquiries related to our products, and provides reasonable solutions for the issues raised through the After-Sales Operations The Company strictly monitors the product promotion and sales process, complying with laws and regulations such as the
Management Standards. Advertising Law of the People’s Republic of China to ensure the accuracy, timeliness, safety, and effectiveness of marketing
content.
After receiving customer feedback regarding product-related issues or complaints, the after-sales team determines the
type of service required, and the designated after-sales responsible person follows up. The customer will be responded to The Company is dedicated to providing consumers with accurate and efficient product information to assist them in
within 24 hours, and a solution will be provided. If on-site support is needed, after approval, the designated specialist will making informed choices. In its promotional strategies, the Company steadfastly upholds principles of authenticity
immediately provide after-sales service, ensure the implementation of the solution and continue to track the issue until it is and fairness. Every marketing slogan and advertisement content undergoes thorough compliance review to ensure
fully resolved. Should the issue still persist, we conduct a reassessment and develop successive solutions until achieving a the authenticity and legality of information. The exaggeration or deceptive information to mislead consumers is strictly
closed-loop resolution. prohibited.
Yuneng Technology Co., Ltd. 2024 ESG Report Innovation-Driven Empowerment of Quality Management
Customer Satisfaction
The Company always adheres to a customer-oriented approach and has established internal management systems
Data Security and Customer Privacy
such as the Customer Satisfaction Measurement and Control Procedures. Based on satisfaction survey results, targeted
improvement measures are developed.
Protection
The Company places great emphasis on information security and protection, strictly complying with laws and regulations
such as the Personal Information Protection Law of the People’s Republic of China and the Data Security Law of the People’s
Republic of China. It rigorously supervises the collection, storage, and use of user data to ensure that users’ privacy rights
are fully respected and protected. During the reporting period, the Company did not experience any data security incidents
The Company increases overall
or customer privacy breaches.
promotional efforts, optimizes its
official website, self-media, and
other owned channels to create APsystems Data Security and Customer Privacy Protection Management System
a professional and strong brand
image. Governance
Continuously System: The Company has established internal management systems such as the Information Security Management Manual,
Promoting Brand the Information Security Risk Management Procedures, and the Information Asset Classification Management Procedures.
Building
Governance Structure: The Company appoints an information security manager to oversee and guide the construction of
The Company strength- The Company inten- the information security management system. An ISO working group has been established, composed of the management
ens cooperation with sifies technological representative and heads of each department.
third-party channels, research and develop-
optimizes features of Strengthening ment, further improving
Deepening
self-operated channels Technological product installation Strategy
Sales Channel
such as mini-programs, Operations Innovation and convenience, launching
and expands opera- Product R&D products suitable for
Impacts, Risks, and Opportunities:
tions in emerging chan- various scenarios, and
nels like live streaming driving the smart devel- Risk:
collaborations. opment of products. Data Breach Risk: Theft or accidental loss or damage of the Company’s intellectual assets may have significant impacts on it.
Response Strategy: The Company continuously standardizes information management through regular backups of technical
documents, strengthening internal access control over Company documents, and providing confidentiality training to design
team members to ensure information security.
Impacts, Risks, and Opportunities Management
The Company conducts annual risk assessments to identify new threats and weaknesses. The Information Security Risk
Management Procedures clearly outline the risk management process, including risk assessment preparation, information asset
identification, risk assessment, risk control, and risk acceptance steps.
Indicators and Targets
Targets: By establishing and continuously improving the ISO/IEC 27001:2022 Information Security Management System,
the Company aims to raise the information security awareness of all employees, actively perform corrective and preventive
actions, and ensure the confidentiality, integrity, and availability of information in all business operations. This ensures the
Company’s sustainable business operations, prevents information security incidents, strengthens public trust in the enterprise,
and enhances the Company’s competitiveness.
Indicators: In 2024, the Company experienced 0 incidents of customer confidentiality complaints, 0 incidents of important
information device loss incidents, and 0 incidents of large-scale virus outbreaks (60% of computers infected). Additionally, the
Company conducted information security training for 100% of its employees.
Yuneng Technology Co., Ltd. 2024 ESG Report Innovation-Driven Empowerment of Quality Management
During the reporting period, the Company’s information security management related to the design, manufacturing, and
computer software development of new energy generation equipment and key devices was certified under the ISO 27001
Information Security Training
Information Security Management System Certification, ensuring the effective operation of the Company’s information The Company regularly organizes information security training sessions. The training curriculum covers regular backup
security management system. procedures for technical documents, strict management of internal file access permissions, dissemination of confidentiality
knowledge and establishment of regulations for the design team, as well as the regular review and implementation
of confidentiality policies with appropriate rewards and penalties. The Company believes that employee participation
is key to the implementation of information security and requires all employees to have security awareness and clear
responsibilities. In 2024, the Company provided information security training for all employees, collectively strengthening its
information security defenses.
Case APsystems Conducting Information Security Training
In June 2024, the Company provided information security training for all employees, covering various dimensions of information
security protection skills such as physical security, computer security, network security, application security, and data security.
Topics included encrypting and storing sensitive data, regular backups, data destruction of discarded data, and preventing privacy
leaks from second-hand devices.
This training helped employees deepen their understanding of the information security system, enhance the Company’s overall
information security protection level, mitigate risks such as data leakage and virus invasions, and ensure the secure and stable
operation of business activities.
Information Security Management System Certification
Data Security and Customer Privacy Protection Measures
In addition, the Company has developed a powerful network protection system, deploying devices and software systems
such as firewalls, WAF and antivirus systems. These measures play an effective role in preventing external intrusions
and internal virus propagation. Regular updates to our network security devices and software versions are conducted to
promptly address known vulnerabilities and maintain a stable and secure network environment.
To protect customer privacy information, the Company has established the Privacy Policy, which clearly specifies how
customer personal information is collected, stored, used, and shared. The Company ensures customers’ rights to access,
correct, and delete their personal information and takes measures such as controlling access permissions to prevent data Conducting Information Security Training
loss, illegal use, unauthorized access or leakage, alteration, or destruction.
Yuneng Technology Co., Ltd. 2024 ESG Report Innovation-Driven Empowerment of Quality Management
Supplier Full Lifecycle Management
Supplier Management
The Company has established the Supplier Management Procedures and the Procurement Control Procedures. These
To meet the Company’s expanding needs in both domestic and international markets, the Company has intensified protocols standardize and refine supplier investigation, selection, delivery management and price management, ensuring
collaboration with partners and fortified supply chain management efforts. Moreover, the Company strictly adheres to supply chain security and stability. Additionally, in order to ensure the standardized and systematic management of
relevant laws and regulations such as the Law of the People’s Republic of China on Tendering and Bidding and the Regu- suppliers, the Company has implemented the Supplier Management Measures, imposing rigorous controls over entry,
lations on the Implementation of the Tendering and Bidding Law of the People’s Republic of China, ensuring that all supply approvals and evaluations to achieve full lifecycle management of suppliers, and standardizing and refining supplier
chain activities comply with legal requirements. investigation, selection, delivery management and price management. The Company also implements a multi-source
procurement strategy, requiring at least 2-3 qualified suppliers for each critical raw material, effectively avoiding the risks of
APsystems’ Occupational Health and Safety Management System a single supplier and ensuring supply chain security and stability.
Governance
APsystems’ Supplier Full Lifecycle Management Process
System: The Company has established internal management systems such as the Supplier Management Procedures, the
Procurement Control Procedures, and the Supplier Management Measures.
Entry of Qualified Suppliers
On-Site Evaluation or Not
Governance Structure: The Supply Chain and Risk Control Management Department is responsible for developing new
Continued Collaboration
Re-evaluation Results
Assessment Results
Supplier Evaluation
Qualified Suppliers
Inspection Results
On-Site Inspection
suppliers, collecting relevant supplier data, and evaluating suppliers on aspects such as price, service, and delivery. The
Re-evaluation of
Comprehensive
Assessment
Operations Department is responsible for evaluating supplier quality on an annual and quarterly basis, collecting data related to YES YES YES YES
supplier evaluations, and cooperating with purchasing on new supplier evaluations. The Technical Department is responsible
for evaluating qualified suppliers on an annual and quarterly basis in terms of technical scope and collaborating with
purchasing for new supplier evaluations.
Strategy
NO NO NO NO
Impact, Risk, and Opportunity:
On-Site Evaluation Supplier Rectification within
Impact: Strengthened supply chain security management ensures suppliers’ supply capacity, improves purchasing efficiency, Exemption Deadline
reduces procurement risks, and enhances the Company’s competitiveness.
Risk:
Supply Chain Stability Risk: Geopolitical conflicts can cause supply disruptions. If the Company fails to establish a cross-
regional supplier coordination mechanism, procurement costs may rise due to differences in market rules.
Opportunity:
Market Opportunities: By adopting strategies such as supplier tiered management, the Company enhances the stability of its
supply chain and boosts its market competitiveness.
Response Strategy: The Company builds and improves the supplier management system, ensuring supply chain security and
stability by strengthening sustainable supply chain management.
Impacts, Risks, and Opportunities Management
The Company strengthens the full lifecycle management of suppliers, standardizes its supplier management system, and
systematically manages procurement processes to ensure supplier rights are protected.
Indicators and Targets
Targets: The Company aims to achieve a 100% contract signing rate for supply chain management.
Indicators: In 2024, the Company achieved a 100% signing rate for the Supplier Corporate Social Responsibility Commitment.
Yuneng Technology Co., Ltd. 2024 ESG Report Innovation-Driven Empowerment of Quality Management
New Supplier Onboarding Sustainable Supply Chain Management
The Company has established a comprehensive new supplier onboarding process. When introducing new suppliers, the
Company conducts thorough assessments on areas such as design and manufacturing capabilities, quality systems, Adhering to principles of fairness, equity and transparency, the Company has established a comprehensive supplier,
business conditions and production validation outcomes. Only after passing these evaluations are suppliers recognized as distributor, and service partner selection and evaluation mechanism. Performance indicators related to quality, the
qualified partners. The qualified suppliers are required to sign Confidentiality Agreements, Procurement Agreements, and environment, and occupational health and safety are included in the evaluation dimensions to select high-quality partners.
Quality Agreements. Through regular performance evaluations, the supply chain management is dynamically optimized, achieving win-win
development for both the Company and its partners.
Case Internal Training on Supply Chain Management Meanwhile, the Company signs a Supplier Corporate Social Responsibility Commitment with suppliers and strictly adheres
to the stipulations outlined in the APsystems Supplier Code of Conduct, integrating the concept of social responsibility into
In December 2024, the Company conducted internal training all aspects of supply chain management to ensure the sustainability of supply chain operations.
focusing on “Supplier Audit Operating Standards” and “Supplier
Sourcing Sharing.” This training clarified the mechanisms for
supplier entry, evaluation, and exit, while standardizing the APsystems’ Supplier Code of Conduct
supplier audit processes and methods. Additionally, to enhance
supply chain stability, the Company introduced new OA forms Labor
for supplier backup and certification. Suppliers are required to uphold the human rights of their employees in accordance with globally recognized
standards, demonstrating full respect for their workforce and preserving their dignity.
Health and Suppliers should acknowledge that a safe and healthy work environment not only reduces work-related
Safety injuries and illnesses but also enhances product and service quality. It contributes to increased productivity,
higher employee retention rates and improved morale. Suppliers should also recognize the critical role of
Supplier Evaluation continuous employee investment and education in identifying and addressing health and safety issues in the
workplace.
For suppliers that pass the audit, the Company conducts regular or ad hoc reviews. The SQE develops a supplier audit plan
annually to assess whether their quality systems are maintained and improved, ensuring they meet the Company’s and
customers’ requirements.
Environment
During the audit process, any issues identified by the SQE are confirmed on-site with the supplier and formally communicated Suppliers are expected to minimize adverse impacts on society, the environment and natural resources
during their manufacturing operations, while protecting public health and safety.
via email, along with a request for the supplier to provide written improvement measures. During re-assessment, the
Company focuses on monitoring the improvements made by suppliers with previous non-compliance or incoming material
quality issues observed during the last assessment. If a supplier fails to make effective improvements within the specified
time frame or remains unqualified upon re-assessment, the quality team will draft a formal notification. After approval by Business Ethics
the Operations Supervisor and CTO, the supplier’s qualified status will be revoked. Suppliers must adhere to the highest ethical standards in all aspects of their business activities.
Supplier Classification
For significant manufacturing-oriented key suppliers, the SQE conducts quarterly reviews of their capabilities to ensure they
meet the Company’s requirements. The Company evaluates these suppliers based on the Key Supplier Assessment Score-
card, focusing on five elements: quality, price, delivery, service, and technology.
Cultivating
Human Resources
and Practicing
Responsibility
Employee Employment and Rights
Employee Training and Development
Occupational Health and Safety
Contributions to the Society
Yuneng Technology Co., Ltd. 2024 ESG Report Cultivating Human Resources and Practicing Responsibility
APsystems Employee Recruitment Performance in 2024
Employee Employment and Rights
By Gender By Age
APsystems attaches great importance to the value and rights of our employees. The Company adheres strictly to the
principle of lawful employment, following all relevant laws and regulations such as the Labor Law of the People’s Re- 50 Years Old and Above
public of China and the Labor Contract Law of the People’s Republic of China. We have established internal management Female 29.14% 5.64% Below 30 Years Old 37.59%
systems, including the Human Resources Management Procedures to ensure the full protection of employees’ legal rights
and interests in areas such as recruitment, promotion, working hours, compensation and benefits as well as employee
development.
APsystems Human Resources Organizational Structure
General Manager/CEO
Male 70.86% 56.77%
Vice President of HR
HR Director By Educational Qualifications By Employee Category
College Degree and Below
Master’s Degree and Above
Compensation and Organization and Talent
Recruitment Employee Relations
Performance Development
Demand Analysis and Performance System Design Organizational Design and Labor Relations
Planning and Management Optimization Management
Compensation System Talent Training and Employee Communication
Talent Selection and Hiring
Design Development Management
Regular
Channel Expansion and Compensation Accounting Training and Knowledge Employee Welfare Employees
Bachelor’s
Development and Management Management Management 78.57%
Degree 70.68%
Employer Branding Incentive Policies Corporate Culture Data Analysis and Support
In order to continuously enhance the Company’s workforce composition and talent pool, the Company has established
internal systems such as the Recruitment Management Process, which includes a demand assessment and analysis for
recruitment positions, and clarifies the recruitment implementation process from the recruitment request to the hiring
Employee Recruitment and Employment notice. In addition, the Company has diversified its recruitment channels and actively works on talent acquisition. In social
recruitment, our primary focus is on online platforms, complemented by on-site hiring events and leveraging headhunting
APsystems consistently upholds principles of fairness and impartiality in its recruitment processes, assessing candidates services. We have established partnerships with 5 recruitment platforms to ensure coverage of job opportunities for
based solely on job requirements without prejudice regarding nationality, ethnicity, place of origin, gender, language, local and national candidates. For campus recruitment, the Company primarily participates in university presentations
religious beliefs or qualifications. The Company ensures that employees have equal rights to employment, training, independently, with informational sessions as a supplement. During the reporting period, we participated in 15 career fair
compensation and career promotion, fostering an environment of equality and inclusion in the workplace. events and held 5 informational sessions.
Yuneng Technology Co., Ltd. 2024 ESG Report Cultivating Human Resources and Practicing Responsibility
In addition, the Company has established a complete performance management system, conducting performance
evaluations every six months. Performance is linked to compensation to fully motivate employees’ enthusiasm and
creativity. If an employee disagrees with the evaluation results, they may submit a written appeal, which will be handled by
the Human Resources Department and feedback will be provided to the relevant department.
APsystems Performance Appeal Handling Process
Upon receiving the employ-
e e’s a p p e a l , t h e H u m a n After the appeal is accepted,
The department handling the
If the evaluated employee is Resources Department must the responsible department
appeal must provide a final
unclear about or disagrees respond within three working head will first investigate the
response to the applicant
with the assessment results, days regarding whether the content of the employee’s
within 10 working days after
they can submit a written ap- appeal will be accepted. Ap- a p p e a l , t h e n c o o rd i n a t e
receiving the appeal applica-
peal to the Human Resourc- peals that lack objective fac- and communicate with the
tion, clarifying the outcome
es Department. tual basis or are based solely employee’s direct supervisor
Campus Recruitment of the appeal.
on subjective assumptions and department leadership.
will not be accepted.
In accordance with national regulations such as the Regulations on Prohibiting the Use of Child Labor and local legal
requirements, the Company verifies the age of applicants during the recruitment process. It is explicitly stated in the Human The Company places a strong emphasis on employees’ working hours and holiday arrangements, adhering strictly to the
Resources Management Procedures that all employees must be at least 18 years old, and the employment of child labor is attendance management system. In addition to national statutory holidays, employees are entitled to various welfare leave
strictly prohibited. In 2024, the Company did not experience any incidents involving the employment of child labor or forced periods, including annual leave, marriage leave, maternity leave, nursing leave, breastfeeding leave, sick leave, work-related
labor. injury leave, bereavement leave and personal leave. Depending on job roles and different work stages, departments may
adjust work schedules appropriately after receiving approval from leadership and considering practical circumstances. In
addition, the Company ensures punctual payment of the five social insurances and one housing fund for employees. It also
provides other benefits such as commercial insurance, employee housing facilities, heatstroke subsidies, medical check-
Employee Compensation and Benefits ups, holiday gifts and more to employees to care for their physical and mental health, creating a positive work environment.
Upholding the principle of “internal equity, external competitiveness”, the Company signs contracts with employees in
accordance with the law, clearly defining the compensation management system in the Human Resources Management
Procedures. The Company manages employee salaries, bonuses, and benefits in a standardized way, building a dynamic Employee Satisfaction Survey
compensation system based on employee growth and contributions.
To gain deeper insights into employees’ truthful perspectives and the objective realities of the Company, senior leadership
utilizes various channels such as SMS/WeChat platforms, rationalization proposals, employee satisfaction surveys, forums,
APsystems Compensation Structure department meetings at grassroots levels, recreational activities and luncheons. These initiatives aim to gather feedback
and suggestions, and assess employee satisfaction.
Positional Salary Performance-based Salary Various Allowances Bonuses
Additionally, the Company conducts regular employee satisfaction surveys by distributing the Employee Satisfaction
Questionnaire online. This questionnaire covers key areas such as job satisfaction, work environment, compensation and
Determined based on the Paid according to the em- Provided as benefits to em- O f fe re d a s i n c e n t i ve s i n
benefits perceptions, and opinions on personal development and leadership. Gathering employee feedback allows the
employee’s position impor- ployee’s job performance ployees based on the Com- accordance with the Compa-
tance and individual qualifi- and company performance. pany’s operational conditions ny’s or department’s perfor- Company to further optimize its management practices and work environment and create a satisfying work atmosphere for
cations and paid monthly. It is variable and paid month- and regional standards and mance, as well as the Com- employees. In 2024, the employee satisfaction survey participation rate was 91.13%, and employee satisfaction exceeded
ly, quarterly, or annually. paid monthly. pany’s reward policies after 90%.
assessments and approvals.
These are irregular and spe-
cial.
Yuneng Technology Co., Ltd. 2024 ESG Report Cultivating Human Resources and Practicing Responsibility
Employee Care
At APsystems, we recognize that the recognition and satisfaction of our employees are fundamental to the Company’s
Employee Training and Development
sustainable development. Therefore, we not only prioritize employees’ career growth but also dedicate ourselves to
APsystems places great emphasis on talent development and accumulation, stimulating employee potential through
enriching their lives and enhancing their overall well-being. Through a variety of cultural and recreational activities, as
training and incentives. The Company views the creation of a high-quality talent team as a core competitive advantage
well as team-building initiatives, the Company aims to help employees find enjoyment in their work, stimulate vitality, and
for its sustainable development. In a highly competitive market environment, continuous employee training has become a
become more engaged in their jobs.
necessary condition for businesses to maintain competitive advantage and achieve sustainable growth.
Moreover, we encourage employees to pursue their personal interests and hobbies outside of work, promoting a healthy
work-life balance and maintaining their physical and mental health. The Company is committed to continuously improving
and creating a vibrant and fulfilling experience for our employees, fostering a sense of care and warmth within our
Employee Training System
organization.
The Company continuously improves its training mechanism, building a matrix-style training system that covers all
employees, with clear levels, empowering both business and talent development. From basic quality training to enhance
employees’ overall competence, to management skills training that focuses on core abilities for managerial positions,
and to in-depth professional training in various fields, the Company comprehensively and systematically helps employees
achieve capability leaps.
The Company, based on the Employee Training Needs Form, has formulated the APsystems Training Plan in 2024, aiming to
provide better growth opportunities and development space for employees. The Company combines internal and external
training with online training to ensure that all employees can participate in courses and apply the knowledge learned in
practice.
Team-Building Activities Fun Sports Day APsystems Training Plan in 2024
Management Skills Improvement Professional Ethics Improvement
The Company holds a steadfast belief in the indispensable role of female employees in our development, dedicating to
cultivating an inclusive, equitable and supportive work environment where every female employee can fully unleash her Effectively improve the comprehensive management level of Help employees improve their ability to cooperate with others
potential. During International Women's Day, the Company set up holiday benefits, distributed gifts to all female employees company managers. and their professional ethics.
to enhance their sense of belonging. This has increased the happiness and cohesion of female employees, and promoted
the harmonious development of the team. New Employee Training Safety Production Training
Held periodically based on new employee onboarding. Covers company safety production documents, systems,
Includes company culture, rules and regulations, product processes, hazard factors, prevention measures, accident
introduction, production process overview, and company cases, and occupational disease prevention knowledge.
tours. Conducted 4 times a year.
Safety Information Training Departmental Training
Covers information security, network security, etc. Professional technical training, internal product training,
external training, etc.
In 2024, the Company conducted 5 company-level training sessions with a completion rate of 100%. The total investment
for company-level training was CNY 210,660.
International Women’s Day Activities
Yuneng Technology Co., Ltd. 2024 ESG Report Cultivating Human Resources and Practicing Responsibility
Talent Development Case Carry out the "Rise Up" training for all employees to promote the common growth of individuals and organizations.
The Company understands that talent team construction is the foundation for its sustainable development. It has
In June 2024, the Company launched a training course titled "Rise Up - Be a Climber in the Organization". This training focuses
established internal systems such as the Position Level System Management System of APsystems, the Employee Promo- on the collaborative development of individuals and the organization. Based on breaking fixed mindsets and cultivating a growth
tion Management Measures, and the Employee Rewards and Penalties Management Regulations (Interim), to standardize mindset, it deeply analyzes the symbiotic relationship between personal value and organizational development. By teaching goal
position level system management, achieve efficient talent management and development goals, and guide employees in decomposition, stress - resistance training, and efficient execution strategies, it forges employees' practical abilities to overcome
their career development paths. difficulties. At the same time, it strengthens cross - departmental collaboration and upward management skills to build a healthy
organizational ecosystem. Finally, through case review and scenario simulation, the knowledge learned is transformed into
Regarding horizontal development, we encourage employees to engage in internal transfers or competitive applications reusable action plans, comprehensively driving individuals and the organization to break through growth boundaries and enabling
across departments and roles, aligning with the Company’s business growth and individual interests. This approach not employees to climb upward.
only enhances employees’ overall competencies and adaptability but also optimizes the allocation of human resources
within the Company, maximizing the realization of talent value. Conversely, vertical development primarily focuses on
employees’ growth within their current roles, providing opportunities for promotion as their capabilities continue to improve.
APsystems Position Level Promotion Process
Promotion
Role Job Responsibilities
Process
Start Human Resources On an annual cycle, the Human Resources Department initiates the employee promotion
Department. process every March.
Plan Determination The Human Resources Department drafts the annual promotion plan, which includes basic
Human Resources
Department. promotion criteria, procedures, and more.
Department
Each department organizes an internal preliminary review for candidates who meet the
Submission
Each Department criteria and submits them for approval by the respective department leaders, then reports to
the Human Resources Department.
Condition Review
Human Resources The Human Resources Department reviews the candidates submitted by the departments
Department. and provides feedback to the departments.
To further enhance employees’ professional skills and overall competencies, the Company encourages employees to
Promotion Evaluation pursue relevant professional certifications. During the reporting period, a total of 20 technical professionals participated
Human Resources The Human Resources Department organizes the relevant evaluation for candidates who in continuing education training covering public required subject training and professional subject training. The objective
Department.
pass the condition review (such as value assessment, performance presentation, etc.). was to comprehensively elevate employees’ knowledge and skills. The Company and employees shared the training costs
Each Department
Approval
equally, thereby relieving individual financial burdens and showcasing the Company’s commitment to employee growth and
Human Resources
The promotion process is approved based on the evaluation results. support. In 2024, the Company had 25 individuals acquire junior-level certificate, 15 acquire intermediate-level certificate,
Department.
Results Announcement and 3 acquire advanced certificate.
Human Resources
The promotion results are announced and made public within a specified scope.
Records Update Department.
Job Responsibilities
Adjustment Human Resources The Employee Roster and related system information for promoted employees are updated,
Department. and job responsibilities and work requirements are adjusted accordingly.
End
Yuneng Technology Co., Ltd. 2024 ESG Report Cultivating Human Resources and Practicing Responsibility
Occupational Health and Safety Safety Production
The Company consistently upholds the principles of “safety first, prevention-oriented, comprehensive governance”. It
APsystems considers ensuring the life safety and health of employees as a top priority. It strictly complies with laws and follows the policies of “safety management must accompany production management” and “whoever is in charge is
regulations such as the Law of the People’s Republic of China on Work Safety and the Law of the People’s Republic of China responsible”, establishing the Safety Production Responsibility System. This system clearly defines the safety production
on Prevention and Control of Occupational Diseases. Though scientific preventive measures and strict training mechanisms, responsibilities of each unit, management personnel at all levels, and employees in various positions, thereby strengthening
the Company aims to safeguard employees’ health and safety. the safety awareness of all employees. In 2024, the Company did not experience any major work safety accidents.
During the reporting period, the Chairman, General Manager and relevant departmental leaders have jointly signed Annu-
al Safety Production Target Responsibility Agreements in 2024, ensuring the implementation of safety targets across all
APsystems Occupational Health and Safety Management System functional departments. Additionally, the Company signed 314 safety commitment letters with front-line employees, with a
signing rate of 100%, fully implementing safety responsibilities.
Governance
In terms of emergency response, the Company implements a comprehensive three-level safety education program to equip
employees with fundamental safety awareness and skills to effectively handle unforeseen incidents. To enhance efficiency
System: The Company has established internal management systems such as the Safety Production Responsibility System.
in responding to sudden environmental and safety incidents, the Company conducts regular environmental and safety
Governance Structure: The Company has set up a work safety leadership team, composed of relevant personnel from various
emergency response drills. These drills serve to enhance employees’ emergency response capabilities, ensuring swift and
functional departments who are directly responsible for work safety.
accurate response measures in unexpected scenarios.
To standardize employees’ safety behaviors, the Company has developed the APsystems Employee Training Plan in
Strategy 2024, actively conducting safety education for new employees and safety production training. This builds a strong safety
production defense line and enhances employees’ safety awareness and skills. The training covers safety production-
Impacts, Risks, and Opportunities: related documents, systems, processes, hazard factors, preventive measures, accident cases, etc., and is conducted in
classroom settings, with professional training records established for trainees.
Risk:
Policy and Regulatory Risk: If the Company fails to promptly identify updates to laws and regulations, safety accidents may
Case Conducting Fire Emergency Drill
occur.
Response Strategy: The Company implements the safety production responsibilities of each functional department, applies
In June 2024, the Company conducted a fire emergency drill to
the “three managements and three musts” principle, and actively promotes the construction of the safety management system
ensure that all personnel on-site mastered the emergency rescue
and safety production standardization.
procedures and the operation of firefighting equipment. This
drill aimed to enhance the coordination and rapid emergency
response capabilities of on-site managers and specialized
teams, further raising the safety awareness of all employees.
Impacts, Risks, and Opportunities Management
The Company actively implements relevant safety production policies, provides safety education and training, promptly handles
safety incidents, and regularly conducts occupational disease hazard factor testing, taking timely measures for identified risks.
Indicators and Targets Occupational Health
Targets: 100% coverage for occupational disease hazard testing and employee health check-ups, and zero confirmed cases of The Company places high importance on employee occupational health and consistently implements various occupational
occupational diseases. health and safety policies to ensure that employees’ participation and consultation rights are fully protected in areas
such as hazard identification, assessment and control, occupational health and safety goal-setting, incident investigation
Indicators: 100% of employees who have completed one year of employment have undergone health checks. 100% of new
employees undergo pre-employment health checks. and handling, and occupational health and safety performance evaluation. These measures are designed to safeguard
employees’ physical health and life safety.
The Company conducts regular workplace occupational hazard assessments. Utilizing professional detection equipment
and advanced technological methods, the Company thoroughly examines hazardous substances in the workplace.
Yuneng Technology Co., Ltd. 2024 ESG Report Cultivating Human Resources and Practicing Responsibility
Contributions to the Society
Targeted protective measures are implemented based on the Workplace Occupational Disease Hazard Factor Testing
Report to ensure the health and safety of employees’ working environments. Additionally, the Company cooperates with
professional medical institutions to regularly conduct occupational disease testing, providing comprehensive health
protection for employees. In 2024, no occupational diseases were found during employee health check-ups. APsystems has consistently remained committed to its mission of “Driving a Zero-Carbon Future, Co-Creating Intelligent
Living”. We place great importance on philanthropy, continuously deepening our partnerships with various charitable
Furthermore, the Company conducts regular promotional activities and educational campaigns on occupational health,
organizations and sectors, actively fulfilling our social responsibilities, and contributing our strength to the thriving
including observances dedicated to promotion of Occupational Disease Prevention Day. Additionally, occupational health
development of philanthropic endeavors.
hazard notification signs and occupational health safety warning signs are displayed in areas where occupational hazards
are present, such as factory zones and work sites. These measures effectively strengthen employees’ awareness and In recent years, the Company has leveraged its strengths to collaborate closely with numerous domestic and international
understanding of occupational hazards associated with their respective roles. charitable organizations, making significant contributions to the harmonious development of society. During the reporting
period, it donated 8,266 solar reading lights to children in impoverished regions through charitable organizations and
education foundations, and donated 970 PPS mobile power supplies to emergency departments at various levels, totaling
CNY 3,777,800.
Case Donation of Solar Lights and Other Supplies to Charitable Organizations
In 2024, the Company made multiple donations of solar lights
and other supplies to charitable organizations, including
the Baiyin District Charity Association in Baiyin City and the
Longquan City Charity Federation. The solar lights donated
were designed specifically by APsystems’ engineers to address
the electricity access issues faced by students in impoverished
areas. These compact, portable lights can be charged directly
Occupational Disease Prevention Day promotion through sunlight and provide up to 5 hours of continuous
use with one charge. With strong cost-performance, they are
ideal for children in remote areas as supplementary lighting
sources. The Company donated a total of 970 units, worth
CNY 3,596,000, covering multiple regions, improving local
lighting conditions, and contributing to rural development and
community building.
APsystems Charity Donation Ceremony
n addition, the Company adheres to a global public welfare philosophy. From 2020 to 2024, it has made multiple donations
of solar lights to the “The Extend the Day” organization, mainly distributed to regions in Bangladesh, Africa, and other areas.
A total of 8,266 lights were donated, helping local residents solve lighting issues (mainly for children to study and read),
improving lighting quality.
In the future, the Company will continue to strengthen cooperation with other public welfare organizations and sectors,
enrich the forms of public welfare activities, and empower initiatives such as photovoltaic poverty alleviation, solar light
donations, and children’s photovoltaic knowledge popularization. The Company will actively engage in public welfare,
contributing even more to the harmonious development of society.
Occupational health hazard notification signs
Yuneng Technology Co., Ltd. 2024 ESG Report ESG Data Tables and Notes
ESG Data Tables and Notes
Environmental Compliance Management Performance Table
Indicator Unit 2024
Amount of Major Administrative Penalties Imposed by Environmental
CNY10,000 0.00
Authorities Due to Environmental Incidents
Corporate Governance Performance Table
Indicator Unit 2024
Number of Shareholders' Meetings Times 4 Tackling Climate Change Performance Table1
Number of Proposals Reviewed at Shareholders' Meetings Piece 27
Indicator Unit 2024
Number of Board Members Person 7
Total Greenhouse Gas Emissions (Scope 1 and Scope 2) t CO2e 932.19
Number of Female Directors Person 1
Greenhouse Gas Emissions per CNY 10,000 Revenue (Scope 1 and
t CO2e/CNY10,000 0.0053
Proportion of Female Directors on the Board % 14.29 Scope 2)
Number of Independent Directors Person 3 Scope 1 Greenhouse Gas Emissions2 t CO2e 41.01
Proportion of Independent Directors on the Board % 42.86 Scope 2 Greenhouse Gas Emissions3 t CO2e 891.19
Number of Board Meetings Times 10 Scope 3 Greenhouse Gas Emissions4 t CO2e 677.36
Number of Proposals Reviewed at Board Meetings Piece 59 Note1: Statistical Scope The climate-related indicators cover the Company headquarters and Jiangsu Advanced Energy Storage Technology Co. LTD.
Note2: Scope 1 greenhouse gas emissions refer to direct greenhouse gas emissions generated by gasoline consumption of official vehicles. The emission
Number of Supervisory Board Members Person 3
factors refer to the Guidelines for Accounting and Reporting of Greenhouse Gas Emissions by Enterprises, the China Energy Statistical Yearbook, etc.
Number of Supervisory Board Meetings Held Times 9 Note3: Scope 2 greenhouse gas emissions refer to indirect greenhouse gas emissions generated by the consumption of purchased electricity. In 2024, the
Company calculated greenhouse gas emissions from electricity using the location-based method. The emission factor for purchased electricity refers to the
Number of Proposals Reviewed at Supervisory Board Meetings Piece 23 Announcement on the Release of 2022 Carbon Dioxide Emission Factors for Electricity Generation.
Note4: Scope 3 greenhouse gas emissions refer to greenhouse gas emissions generated by employee business travel and company-leased public buildings.
The relevant data refer to the GHG Protocol – A Corporate Accounting and Reporting Standard and the GHG Protocol – Corporate Value Chain (Scope 3)
Accounting and Reporting Standard.
Commercial Behavior Performance Table
Indicator Unit 2024 Energy Usage Performance Table1
Number of Directors Trained on Anti-Bribery and Anti-Corruption Person 7
Indicator Unit 2024
Percentage of Directors Covered by Anti-Bribery and Anti-Corruption
% 100.00 Total Comprehensive Energy Consumption tce 225.62
Training
Comprehensive Energy Consumption Intensity tce/ CNY10,000 0.0013
Number of Management Personnel Trained on Anti-Bribery and Anti-
Person 103
Corruption Direct Energy Consumption tce 28.77
Percentage of Management Personnel Covered by Anti-Bribery and Anti- Gasoline Consumption of Official Vehicles Liter 18,513.20
% 90.35
Corruption Training1
Self-Generated Renewable Energy Consumption MWh 70.00
Amount Involved in Lawsuits or Major Administrative Penalties Due to
CNY10,000 0.00
the Company's Unfair Competition Practices Indirect Energy Consumption tce 196.85
Note 1: Some overseas management personnel are not subject to domestic anti-bribery and anti-corruption training requirements; therefore, the coverage ratio Purchased Electricity Consumption MWh 1,600.55
did not reach 100%.
Note 1: Statistical scope The statistical scope of energy use-related indicators covers the Company headquarters and Jiangsu Advanced Energy Storage
Technology Co. LTD.
Yuneng Technology Co., Ltd. 2024 ESG Report ESG Data Tables and Notes
Waste Disposal Performance Table1 Data Security and Customer Privacy Protection Performance Table
Indicator Unit 2024 Indicator Unit 2024
Total Amount of Non-Hazardous Waste Tons 386.31 Amount Involved in Data Security Incidents CNY10,000 0.00
Note 1: Statistical scope The statistical scope of waste management-related indicators covers the Company headquarters and Jiangsu Advanced Energy
Amount Involved in Customer Privacy Breach Incidents CNY10,000 0.00
Storage Technology Co. LTD.
Usage of Water Resources Performance Table1 Supplier Management Performance Table
Indicator Unit 2024 Indicator Unit 2024
Water Consumption (Office Use) m? 2,160.42 Total Number of Suppliers Supplier 114
Note 1: Statistical scope The statistical scope of water usage-related indicators covers the Company headquarters and Jiangsu Advanced Energy Storage Number of Suppliers Assessed for Environmental, Labor, Ethical, and
Supplier 114
Technology Co. LTD.. Other Aspects
Proportion of Qualified Suppliers Among Those Assessed for
% 100
Environmental, Labor, Ethical, and Other Aspects
R&D Innovation Performance Table
Indicator Unit 2024
Employee Employment and Rights Performance Table
Number of R&D Personnel Person 266 Indicator Unit 2024
Proportion of R&D Personnel % 50.00 Total Number of Employees Person 532
Number of Patent Applications During the Reporting Period Piece 57 Number of Male Employees Person 377
Number of Patents Granted During the Reporting Period Piece 20 Number of Female Employees Person 155
Number of Valid Patents During the Reporting Period Piece 156 Number of Employees Above 50 Years Old Person 30
Number of Invention Patents Applied to Main Business Piece 156 Number of Employees aged 30-50 Years Old Person 302
Amount of R&D Investment CNY10,000 9,405.91 Number of Employees Below 30 Years Old Person 200
Proportion of R&D Investment to Main Business Revenue % 5.36 Number of Employees with Doctoral Degree as Highest Education Person 4
Number of Employees with Master’s Degree as Highest Education Person 78
Number of Employees with Bachelor’s Degree as Highest Education Person 376
Number of Employees with College Diploma as Highest Education Person 61
Safety and Quality of Products and Services Performance Table
Number of Employees with Education Below College Diploma as Highest
Person 13
Education
Indicator Unit 2024
Number of Management Employees Person 114
Amount Involved in Major Safety and Quality Liability Accidents Related
CNY10,000 0.00
to Products and Services Number of Senior Management Employees Person 10
Yuneng Technology Co., Ltd. 2024 ESG Report ESG Data Tables and Notes
Indicator Unit 2024 Occupational Health and Safety Performance Table1
Number of Middle Management Employees Person 39
Indicator Unit 2024
Number of Junior Management Employees Person 65
Number of Safety Production Training Sessions Session 11
Number of Frontline Employees Person 418
Number of Safety Production Training Attendances Person-time 1,446
Total Number of New Employees Person 172
Number of Employees Receiving Occupational Safety Training Person 459
Number of New Male Employees Person 127
Coverage Rate of Employees Receiving Occupational Safety Training % 100
Number of New Female Employees Person 45
Investment Amount in Occupational Safety Training CNY10,000 15.10
Number of Employees from Ethnic Minorities Person 11
Number of Employees Participating in Occupational Disease Medical
Person 18
Number of Employees with Disabilities Person 2 Examinations
Number of Labor Dispute Incidents Piece 0 Lost Workdays Due to Work-Related Injuries Day 0
Number of Employee Discrimination Incidents Piece 0 Number of Employees Covered by Work Injury Insurance Person 532
Coverage Rate of Employees with Work Injury Insurance % 100
Investment Amount in Employee Work Injury Insurance CNY10,000 35.64
Note 1: Statistical scope The statistical scope of occupational health and safety-related indicators covers the Company headquarters and Jiangsu Advanced
Energy Storage Technology Co. LTD
Employee Training and Development Performance Table1
Indicator Unit 2024
Public Welfare Performance Table
Number of Employee Training Attendances Person-time 3,719
Total Number of Employees Receiving Training Person 459 Indicator Unit 2024
Number of Male Employees Receiving Training Person 327 Amount of Charitable Donations CNY10,000 377.78
Number of Female Employees Receiving Training Person 132
Employee Training Coverage Rate % 100
Number of Employee Training Sessions Session 35
Total Expenditure on Employee Training CNY10,000 21.07
Total Training Hours Received by Employees Hour 68,264.00
Average Training Hours per Employee Hour 148.72
Average Training Hours for Male Employees Hour 141.75
Average Training Hours for Female Employees Hour 166.00
Note 1: Statistical scope The statistical scope of employee training and development-related indicators covers the Company headquarters and Jiangsu
Advanced Energy Storage Technology Co. LTD
Yuneng Technology Co., Ltd. 2024 ESG Report ESG Data Tables and Notes
Index
Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation
of Listed Companies—Sustainability Report (Trial) Content Index
Disclosure Content Disclosure Content
Tackling Climate Change Supplier Management
Climate change tackling Supply chain security
ESG Data Tables and Notes ESG Data Tables and Notes
The Company adopts the original equipment manufacturing (OEM) production model. Its At the end of the reporting period, the balance of accounts payable (including notes payable)
business premises are mainly for research and development, operation, and management. It Equal treatment to small and of the Company did not exceed 30 billion CNY, and its proportion of total assets did not
Pollutant discharge has a relatively small impact on environmental pollution and does not belong to enterprises medium-sized enterprises exceed 50%. It does not fall within the mandatory disclosure scope of the Guidelines, and the
in heavily polluting industries. It has not affected the surrounding environment. Therefore, this Company makes timely payments to small and medium-sized enterprises.
issue has a relatively small relevance to the Company.
Product Quality Management
Safety and quality of products and
Waste disposal Green Operations Customer Relationship Management
services
ESG Data Tables and Notes
The daily operations of the Company are not within the ecological protection red line, and are
Ecosystem and biodiversity relatively far from it. There are no nature reserves in the vicinity, nor are there other areas with Data security and customer privacy Data Security and Customer Privacy Protection
protection important ecological functions or areas that are ecologically sensitive and fragile. Therefore, protection ESG Data Tables and Notes
the relevance of this issue to the Company is relatively low.
Employee Employment and Rights
Environmental compliance Green Operations Employee Training and Development
Employees
management ESG Data Tables and Notes Occupational Health and Safety
ESG Data Tables and Notes
Green Operations
Energy usage
ESG Data Tables and Notes Due diligence Materiality Analysis
Green Operations Communications with stakeholders Materiality Analysis
Usage of water resources
ESG Data Tables and Notes
Anti-commercial bribery and anti- Commercial Behaviors
The Company is not involved in production and manufacturing, and has conducted few corruption ESG Data Tables and Notes
Circular economy circular economy practices in daily operations. It will strengthen the management of this issue
Anti-unfair competition Commercial Behaviors
in the future.
Corporate Corporate Governance
Rural revitalization Contributions to the Society
Governance ESG Data Tables and Notes
Contributions to the Society
Contributions to the society Self-disclosed Risk Control
ESG Data Tables and Notes Risk Control management
Topics Management
R&D Innovation
Innovation-driven Green
ESG Data Tables and Notes Green Business
Business
The Company is not engaged in scientific research, technological development, or other
Ethics of science and technology activities in science and technology ethics-sensitive fields such as life sciences and artificial
intelligence, so the Company is not involved in this issue.
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