ENVIRONMENTAL,SOCIAL,AND GOVERNANCE REPORT
Zhejiang Crystal-Optech Co., Ltd.
Address: No. 2198, East Section of Development Avenue,Jiaojiang District, Taizhou City, Zhejiang ProvinceTel: 0576-8981-1901Email: sjzqb@crystal-optech.com
CONTENTS
About This ReportMessage from the Chairman
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Looking AheadAnnexIndexesFeedback Form
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Company Pro?leDevelopment StrategyCorporate CultureHonors Development History Performance in ????
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About Crystal-Optech
ESG Goal and Vision ESG GovernanceCommunication with StakeholdersManagement of Material Topics
ESG Management
Standardize Corporate GovernanceProtecting Investors' Rights andInterestsPracticing Business Ethics
Employee Training and DevelopmentResource ManagementData Security Guarantee
Excellence in Governance,
Building the Cornerstone
of Development
Response to Climate ChangeEnvironmental ComplianceManagement
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Green Leadership,Co-Creating a Low-Carbon Future
Innovation-DrivenSupply Chain ManagementProduct and Service Safety andQuality
Value Co-creation, Writing a NewChapter of Development
Occupational Health and Safety
Protection of the Legitimate
Rights and Interests of Employees
People-oriented, Building a
Harmonious Workplace
Rural RevitalizationPublic Welfare and Charity
Walk Hand in Hand in PublicWelfare and Jointly Paint a Scrollof Love
CRYSTAL
OPTECH
Reporting Period: The timeframe for the report is January ?, ???? to December ??, ????. In order to improve the comparability andcompleteness of the report, some of the statements and data are retrospective and extended as appropriate.Scope of Organization: This report takes "Zhejiang Crystal-Optech Co., Ltd." as the main body, including its subordinate holdingsubsidiaries, unless otherwise speci?ed, the scope of this report is consistent with the scope of the Company's annual report.
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This report is the ?rst Environmental, Social and Governance Report released by Zhejiang Crystal-Optech Co., Ltd. Adhering to theprinciples of objectivity, standardization, transparency and comprehensiveness, the report details the management strategies,practices and performance of Zhejiang Crystal-Optech Co., Ltd. and its holding subsidiaries in the areas of environmental, social andcorporate governance during ????.
Introduction
The ?nancial data in this report are sourced from the ???? Annual Report of Zhejiang Crystal-Optech Co., Ltd. , and other informa-tion and data are from the statistical summaries of the data of the relevant departments of the Company or public documents, andthere are no false records, misleading statements or material omissions in the content of the report. Unless otherwise stated, themonetary amounts covered in this report are measured in RMB.
Data Sources and Explanations
Reporting Scope
This Environmental, Social and Governance Report is released on an annual basis.Release Cycle
Guidelines No. 1 of the Shenzhen Stock Exchange for the Self-regulation of Listed Companies - Standard Operation of Companies Listedon the Main BoardGuidelines No. 17 of the Shenzhen Stock Exchange for the Self-regulation of Listed Companies - Sustainability Report (Trial)Global Reporting Initiative (GRI) Sustainability Reporting Standards (GRI Standards)China Enterprise Reform and Development Society Chinese Corporate Sustainable Development Report Guidelines (CASS-ESG6.0)Task Force on Climate-related Financial Disclosures (TCFD) FrameworkUN Sustainable Development Goals (SDGs)Sustainability Accounting Standards Board (SASB) Standards
Preparation Basis
For the ease of expression and readability, the following terms are used in this report:
De?nition
This report is published in both Chinese and English versions. When there is ambiguity or con?ict between the two languages, theChinese version shall prevail. You can check and download the report in electronic version from the o?cial website of ShenzhenStock Exchange (http://www.szse.cn/), CNINFO Information Network (http://www.cninfo.com.cn/), the o?cial website of ZhejiangCrystal-Optech Co., Ltd. (https://www.crystal-optech.com/) and the Company's WeChat O?cial Account.
Access and Feedback
TermInterpretation
Crystal-Optech, the Company or we/us
Crystal-Optech JiangxiJiangxi JingchuangT-Best ElectronicsCrystal-Optech Linhai, New T.Best
YeshiliYeshili XianjuCrystal-Optech HongkongCrystal-Optech AmericanCrystal-Optech JapanCrystal-Optech Vietnam
COTC
COTVCOT VietnamCrystal DisplayCrystal-Run OptoCrystal-Schott
LumusOPTORUN Japan
OLPF
AR-HUD
Zhejiang Crystal-Optech Co., Ltd.Crystal-Optech Jiangxi-Optech Co.,Ltd.Jiangxi Jingchuang Technology Co., Ltd.Zhejiang T.Best Electronic Information Technology Co., Ltd.
New T.Best Optoelectronics Co., Ltd.
Yeshili New Materials Co., Ltd.Yeshili New Materials (Xianju) Co., Ltd.Crystal-Optech Technology (Hongkong) Co., Ltd.Crystal-Optech technology (California) Co.,Ltd.
Crystal-Optech（Japan）Co., Ltd.CRYSTAL-OPTECH VIETNAM CO., LTDCOTC HOLDING PRIVATE LIMITEDCOTV HOLDING PRIVATE LIMITEDCOT VIETNAM CO., LTDZhejiang Crystal Display Technology Co.,Ltd.Zhejiang Crystal-Run Opto-Electronics Technology Co.,Ltd.Zhejiang Crystal-SCHOTT Optical Technology Co.,Ltd.
Lumus Ltd.OPTORUN Co.,Ltd.Optical Low Pass FilterAugmented Reality-Head Up Display
If you have any comments or suggestions on the report, please contact us by the following means:
Address: No. ????, East Section of Development Avenue,Jiaojiang District, Taizhou City, Zhejiang ProvinceEmail: sjzqb@crystal-optech.com
Postal code: ??????Tel: ????-????????
AboutThisReport
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Dear shareholders, investors, partners and friends from all walks of life:
Hello, everyone!The year ????, as a key point in the promotion of the ??th Five-Year Plan, is full of challenges and opportunities. In the complex andever-changing global economic situation and increasingly severe environmental issues, Crystal-Optech has achieved remarkableresults by adhering to the business policy of "Adjusting Structure and Optimizing Layout, Limiting Expenses and Reducing Risks, andBuilding Endogenous Competitiveness". At the same time, we have always adhered to the core concepts of "Excellent Governance,Green Development and Social Responsibility", deeply integrated ESG concepts into our corporate development strategy, andactively ful?lled our social responsibilities in the course of realizing our own high-quality development, contributing to the buildingof a harmonious society.This year, we have been deeply cultivating excellence in governance and consolidating the foundation of development.The Company continues to improve its governance structure, strengthen compliance risk management and internal control system,and continuously enhance its governance e?ectiveness. We have always put the interests of investors in the ?rst place, standardizedinformation disclosure, strengthened communication with stakeholders through diversi?ed channels such as performance exchangemeetings and Easy Interaction Q&A, and made every e?ort to shape an open, transparent and responsible corporate image.This year, we have practiced green development and led low-carbon change. We are well aware that green development is theonly way for sustainable development of enterprises. The Company continues to strengthen the management of water resources andpromote technological upgrading to achieve e?cient recycling of water resources; optimize the energy structure and vigorously pro-mote the use of photovoltaic, green power and other clean energy; and actively participate in climate change action, and be commit-ted to reducing carbon emissions, leading the industry towards a green and low-carbon future, and making a little contribution tothe construction of a beautiful China.This year, we have taken social responsibilities bravely and written a new chapter in development. We keep up with thecutting-edge trends in the industry, continue to increase investment in research and development, build a perfect talent training andtechnological innovation system, and drive the enterprise development with scienti?c and technological innovation. We practice theconcept of circular economy, improve the e?ciency of material utilization, work together with suppliers to improve the whole lifecycle management of products, and continuously improve the quality of products and services. We adhere to the people-oriented,create a harmonious workplace environment, e?ectively protect the rights and interests of employees, pay attention to employeegrowth, and build a broad platform for employees to realize their self-worth.This year, we have been enthusiastic about public welfare and jointly painted a picture of love. We actively respond to thenational strategy of rural revitalization, and help the development of the countryside through a variety of ways, such as consumer
Lin Min, Chairman of Crystal-Optech
Messagefrom theChairman
assistance, education assistance, employment assistance, etc., in orderto give back to the society through practical action.Looking ahead to the future, we will continue to uphold the corporatemission of "Innovation makes optics more powerful, optics make theworld a better place", unswervingly follow the path of sustainabledevelopment, continuously improve ESG governance level, and makeunremitting e?orts to realize high-quality development of the enterpriseand create greater value for the society!Finally, I would like to sincerely thank all shareholders, investors, part-ners and friends from all walks of life for their long-term concern andsupport for Crystal-Optech!
About Crystal-Optech
CRYSTALOPTECH
Company Pro?leDevelopment StrategyCorporate CultureHonors Development History Performance in ????
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Zhejiang Crystal-Optech Co., Ltd. was established in August ????, headquartered in Taizhou, Zhejiang, and listed on the ShenzhenStock Exchange in September ???? (Stock Abbreviation: Crystal-Optech; Stock Code: ??????).The Company specializes in R&D, production and sales of products related to optical imaging, thin ?lm optical panels, automotiveelectronics (AR+), re?ective materials and other ?elds, and its products are widely used in consumer electronics, automotive optics,AR/VR, etc. For more than two decades, the Company has adhered to the innovative development in the optical industry, commit-ted to becoming a globally outstanding one-stop optical solution expert. Under the guidance of the three strategic principles of"Globalization, Technology-based, and Open Cooperation", Crystal-Optech has established comprehensive, in-depth, and stablecooperative relationships with domestic and foreign end customers, and has strong comprehensive competitive advantages in?elds such as thin ?lm optics, semiconductor optics, and precision manufacturing. At present, the Company has built six productionbases with a land area of nearly ?,??? mu, which are located in Taizhou, Zhejiang Province (Binhai, Cluster Area, Linhai), Yingtan,Jiangxi Province, Dongguan, Guangdong Province and Vietnam.
Company Pro?le
Development Strategy
GlobalizationMarkets: Seven subsidiaries and o?ces covering Greater China, Pan-Asia Paci?c, and European and American marketsProduction: Six production bases at home and abroad, providing services for international and domestic customersR&D: Building an international R&D cooperation system with the platform of overseas subsidiariesTechnology-based
In ????, the Central Research Institute was established, accumulating optical thin ?lm design technology, semiconductor opticaltechnology, precision optical processing technology, automated intelligent technology, hardware structure design technology,optical system design technology, system testing technology, measurement and analysis technology, and providing customers withone-stop optical solution service through the construction of technology platforms
Open CooperationMaintain close technical and business cooperation with the upstream and downstream industry chain
企业文化
Mission
VisionInnovation makes optics more powerfulOptics make the world a better placeBecoming a globally outstanding one-stopoptical solution expert
Core ValuesLearning, growth, gratitude, and sharing
Business PhilosophyBeing a noble person and doing excellent things
AwarderAward PictureAward NameHonorWinnerAwarding
Time
December
????December
????December
????February
????
December
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December
????
December
????
December
????
Crystal-Optech
Crystal-Optech
Crystal-Optech
Crystal-Optech
Crystal-Optech
Crystal-Optech
Crystal-Optech
Crystal-Optech
Zhejiang Eagle Enterprise???? TaizhouMunicipal Water-savingEnterpriseHigh-tech Enterprises
Major Technical InnovationAward in ????
???? Taizhou MunicipalWater-saving Enterprise
National Advantageous Intellectual
Property Enterprise
Manufacturing Single ChampionDemonstration Enterprises
Zhejiang HiddenChampion Enterprise
Honors
Economy andInformation TechnologyDepartment of ZhejiangEconomy andInformation TechnologyDepartment of ZhejiangEconomy andInformation TechnologyDepartment of ZhejiangCPC Taizhou JiaojiangDistrict Committee,Taizhou Jiaojiang DistrictPeople's GovernmentEconomy and InformationTechnology Departmentof Zhejiang, TaizhouWater Resources Bureau,Taizhou ComprehensiveAdministrative LawEnforcement BureauApplication PromotionDepartment of ChinaNational IntellectualProperty AdministrationMinistry of Industry andInformation Technology ofthe People's Republic ofChina
Economy and InformationTechnology Departmentof Zhejiang
Performance in ????
Crystal-Optechestablished200220032005
20062008
2014
2015
20172019
2020
200920102011
2012
2021
2022
2023
Security cameraOLPF started
Mobile phone revenue exceedscamera revenueListed on theShenzhen Stock Exchange
Investing in OPTORUN JapanAcquiring re?ective materials forYeshili layout
Combination Head Up Display (C-HUD)Enters the Automotive MarketInitiate the?rst Amoeba mechanism reform
Establishing the Central ResearchInstitute OPTORUN Japan launchedStrategic cooperation with Digilensto lay out di?raction waveguideroutes
The ?rst global AR-HUDequipped with Hongqi EHS?has been launched
Establish CrystalDisplay R&D and productionof micro projection modules
Acquiring Taijia to strengthencold processing technology
Strategic cooperation withLumus to lay out the re?ectivewaveguide route
Entering North Americanmajor clients
Overseas Vietnamese manufacturingbase put into operation
The development of camera cover business as the second pillar of revenueAR-HUD exclusively for Chang'an Deep Blue
EconomicPerformance
Operating IncomeNet Pro?t Attributable to Shareholders of the Listed CompanyTotal Assets
RMB
RMB ??? millionRMB ??? millionRMB ??? millionEnvironmental InvestmentRecti?cation Rate of Environmental HazardsNumber of Environmental Training SessionsPollutant Monitoring Compliance rateHazardous Waste Recycling RateProportion of Recycled Water in Total Water ConsumptionOther Clean Energy UsageScope ? Greenhouse Gas EmissionsScope ? Greenhouse Gas EmissionsTotal Greenhouse Gas Emissions (Scope ? and Scope ?)Greenhouse Gas Emission IntensityReduction of GHG Emissions
RMB??,???
%/%%%kWhtCO?etCO?etCO?etCO?e/??,??? yuan (value of production)
tCO?e
EnvironmentalPerformance
302.17
62.78
10.30
116.80
157,281,000.00
365.94
22,506.0922,872.03
0.049
15,558.35Percentage of Female DirectorsPercentage of Independent DirectorsNumber of Anti-corruption Training SessionsEasy Interaction Response RateTotal Cash Dividend
%%/%RMB??,???
16.67
33.33
CorporateGovernancePerformance
R&D InvestmentsCumulative Number of Authorized PatentsProduct YieldCustomer SatisfactionInvestment in Safety Education and TrainingTotal Hours of Employee TrainingTotal Investment in Rural RevitalizationTotal Investment in Social Welfare
RMB??,???Item%%RMB??,???HourRMB??,???RMB??,???
88.75
89.50
59.70
32,899.89
11.00
16.80
SocialPerformance2024
The construction of the new Crystal-OptechLinhai plant was completed and put intooperation
2016
Investing inLumus Israel
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DevelopmentHistory
Becoming Sony's exclusive domestic supplierInfrared cut-o? ?lter supplied to internationalmainstream mobile phone terminals
The ?rst domestic AR-HUD supplier has been designated byoverseas mainstream car manufacturersInitiate the secondphase of overseas Vietnam base construction
40,779.4841,261.99
ESG Goal and Vision ESG GovernanceCommunication with StakeholdersManagement of Material Topics
ESG Management
CRYSTALOPTECH
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SDGs
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ESG Goal and Vision
Crystal-Optech takes ESG concept as an important part of the Company's development strategy, focusing on corporate governance,green manufacturing, social responsibility and other areas, grasping the opportunities for sustainable development in the new era,striving to achieve the United Nations Sustainable Development Goals (SDGs), and leading the Company towards a higher qualityand more sustainable development path.Focus Areas
Corresponding
Title Below
Action of Crystal-Optech in 2024
Focus Areas
CorrespondingTitle Below
Action of Crystal-Optech in 2024
SDGs
Excellence in Governance,Building the Cornerstoneof DevelopmentCorporateGovernance
The Company continuously improves its gover-nance structure, strengthens compliance risk man-agement and internal control, and builds thecornerstone of the Company's development. At thesame time, the Company standardizes informationdisclosure behavior, protects the legitimate rightsand interests of investors, and strengthens com-munication with stakeholders through variousactivities such as performance exchange meetingsand Easy Interaction Q&A.
SocialResponsibilities
SocialResponsibilities
Value Co-creation, Writing
a New Chapter of Development
The Company keeps up with the industry'scutting-edge continuous technological innovation,builds a perfect supporting mechanism for talentsand technological innovation system; practicesthe concept of recycling economy, improves thee?ciency of material utilization; maintainslong-term and stable cooperative relationshipwith suppliers, improves the whole life cycle man-agement process of products, and promotes theimprovement and optimization of the quality ofproducts and services.
The Company actively responds to the nationalrural revitalization strategy and promotes localdevelopment through consumption assistance,education assistance and employment assistance.
GreenManufacturing
Green Leadership,
Co-Creating aLow-Carbon Future
People-oriented,Building a HarmoniousWorkplace
Walk Hand in Handin Public Welfare andJointly Paint a Scrollof Love
The Company strengthens water resource manage-ment, enhances the water-saving awareness, andpromotes the recycling of water resources withtechnological upgrading; optimizes the structureof energy utilization, and promotes the use ofclean energy such as photovoltaics and greenpower; and actively participates in coping with thegovernance of climate change, reduces carbonemissions, and leads the industry in low-carbontransformation.
The Company establishes a perfect safety produc-tion management system to guarantee the safetyof employees; relies on the Crystal Business Schooland employee training programs to accelerate theconstruction of the talent team; formulates theLabor Protection Management Procedures forFemale Employees to safeguard the legitimaterights and interests of female employees; recruitstalents through various channels such as socialrecruitment, campus recruitment, online recruit-ment, etc., and at the same time recruits veteransand people with disabilities; establishes a fair andreasonable salary management system and ascienti?c performance appraisal mechanism;respects the cultural di?erences and customs ofdi?erent nationalities, races and religions, andrejects any form of forced labor to build a harmoni-ous workplace.
Crystal-Optech's ESG Governance Framework and ResponsibilitiesLevelGovernance subjectComponentsResponsibilities
Decision-making Level
Managerial LevelExecutive Level
Board membersBoard of Directors
Strategy andSustainability
Committee
ESG Joint Working Group
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In order to standardize the Company's ESG management and ensure the e?ective operation of the ESG management system, Crys-tal-Optech has formulated the Environmental, Social and Governance (ESG) Working Rules, built an ESG governance framework con-sisting of the Board of Directors, the Strategy and Sustainability Committee, and the ESG Joint Working Group, and fully consideredESG-related impacts, risks and opportunities in the process of strategy implementation, risk management and major decision-mak-ing, and has comprehensively enhanced the Company's ability to ful?ll ESG responsibilities.
ESG Governance
Governance Framework
ESG Training
Toward a new chapter of sustainable development, Crystal-Optech held an ESG kicko? meeting
On June ??, ????, Crystal-Optech held an ESG kicko? meeting. The Company has hired external experts to provide train-ing for the management team and ESG joint working group, covering cutting-edge environmental protection strategies,social responsibility implementation, and optimization and improvement of corporate governance. This enables person-nel at all levels to clearly grasp the close relationship between ESG and daily operations of the enterprise, and compre-hensively enhance their profound understanding of the connotation of ESG.
ESG Training Site
Communication with Stakeholders
Crystal-Optech emphasizes the communication and exchange with its stakeholders. The Company has established a diversi?edcommunication platform to obtain the demands, expectations and constructive opinions of all stakeholders in a broad and in-depthmanner, and has fully considered and responded to them positively in an e?ort to create greater comprehensive value of sustain-able development for the stakeholders and to realize mutual bene?ts and win-win situation between the Company and the stake-holders.
StakeholdersExpectations and RequirementsOur Responses
Suppliers
Government and
RegulatoryAuthorities
Regulating Corporate GovernanceCompliance and Risk Management
Tax ComplianceAnti-bribery and Anti-corruption
Protection of Shareholder EquityAnti-bribery and Anti-corruption
Stakeholder Communication
Occupational Health and Production SafetyEmployee Training and DevelopmentProtecting the Legitimate Rights and Interests
of Employees
Supply Chain Security
Regulating corporate governanceConducting internal auditsTax risk managementPracticing business ethics
Building a responsible supply
chainConducting supplier safety
trainingCon?ict minerals management
Enhancing information disclosureInvestor relationship managementProtecting the legitimate rights andinterests of small andmedium-sized shareholdersOccupational disease hazard factordetection and protectionProtection of employees' rights a
nd interestsSalary and bene?t systemSta? training managementEmployee development accessStrengthening democraticmanagement and employee care
Shareholders andInvestors
Employees
Customers
Data Security and Privacy ProtectionProduct and Service Safety and Quality
Customer privacy protectionControlling product quality a
nd safetyProtecting the rights and interests
of customers
Guild/Association
R&D and Innovation
Carrying out school-enterprise
cooperationBuilding innovation platforms
Case
The Company‘s generalmanager, each ESGmatter related func-tional department, ESGcontact person of sub-sidiaries
Responsible for developing and imple-menting ESG policies, strategies andobjectives, managing risks and improvingsystems, and supervising the implementa-tion of practices to fully promote theCompany's ESG work.
Responsible for overseeing and approvingESG strategies and policies to ensurealignment with the Company's long-termdevelopment objectives.Responsible for developing ESG strategy,overseeing ESG performance and majordecisions; identifying and monitoringESG-related risks and opportunities andguiding management to take appropriatecountermeasures.
?Financial materiality assessmentThrough the analysis of impacts, dependencies, and other factors, in combination with expert judg-ment and risk identi?cation and evaluation lists from departments, risks and opportunities undereach relevant topic were identi?ed and assessed, and topics with ?nancial materiality were identi-?ed.An topic list was formed based on impact materiality and ?nancial materiality, and e?orts weremade to ensure that the relevant topics are transparently, fairly, and comprehensively disclosed inthe report.
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Addressing Climate ChangeEnvironmental Compliance Management
Pollutant Emissions
Waste DisposalEnergy Utilization
Rural RevitalizationSocial Contribution
Greenhouse gas emissionmanagementHelping to save energy and reduce
emissionsEnvironmental compliancemanagementPollution compliance emissionsImproving resourceutilization e?ciencyImplementing green o?ceHelping to revitalize rural areasParticipating in public welfare and charity activities
Environmental
Communities
Management of Material Topics
With reference to the Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 17 - Sustainable DevelopmentReports (For Trial Implementation) (hereinafter referred to as the “the Guidelines”), and based on the characteristics of the industryand the business realities of the Company, we conducted a comprehensive assessment of the Company’s performance on variousrelevant topics to see whether they will have a material impact (i.e., impact materiality) on the economic, social, and environmentalaspects. We also evaluated whether each topic will have a material e?ect (i.e., ?nancial materiality) on the business model, opera-tions, development strategy, ?nancial situation, cash ?ow, ?nancing methods and costs, value chain of the Company. Through suchmateriality assessment, and with reference to the relevant requirements of the international mainstream sustainability reportingstandards, the Company conducted the materiality assessment of the topics in the topic pool, The speci?c implementation stepsare as follows:
Identi?cation Results of Material Topics
With impact materiality but no ?nancial materialityWith no ?nancial materiality or impact materiality
With both ?nancial materiality and impact materialityWith ?nancial materiality but no impact materiality
Assessment Process and Methods
StakeholdersExpectations and RequirementsOur Responses
Issue evaluation processAnalysis method
Response to ClimateChangeEnvironmentalComplianceManagementPollutant EmissionsWaste TreatmentEnergy Utilization
Occupational Health and SafetyProduct and Service Safetyand QualitySupply Chain SecurityR&D and Innovation
Water ResourceUtilizationCircular EconomyProtection ofEmployees’LegalRights and InterestsEmployee Training andDevelopmentData Security andPrivacy ProtectionRural RevitalizationContribution toSocietyESG GovernanceEcosystem and Biodiversity ProtectionEqual Treatment of SMEsTechnology Ethics
Materiality for the Company's ?nances
Materiality for economic, social and environmental impacts
?Impact materiality assessmentE?orts were made to identify the potential or actual positive or negative impacts of each topic on theexternal environment, society, and economy. A survey was conducted among stakeholders in theform of questionnaires, with ??? responses collected. Expert judgment was combined to assesstopics with impact materiality.
Analyze the background of the Company based on global macro trends, China’s industry develop-ment trends, the industry in which the Company operates, and the Company’s business model, andidentify the Company's stakeholders and the impacts, risks, and opportunities the Company faces.Learn aboutcompany background
Step 1
Conduct preliminary
topic screeningStep 2
Assess the materiality
of topics
Step 3
Assess the materialityof topicsStep 3
Identify and approve
material topics
Step 4
Use the ?? topics outlined in the Guidelines as the foundation for the topic list, refer to internationalmainstream sustainability reporting standards such as GRI, and consider related topics from domes-tic and international peers, align with the Sustainable Development Goals (SDGs) of the UnitedNations, establish ???? ESG topic pool consisting of a total of ?? topics.
Issue evaluation processAnalysis method
StakeholderCommunicationRegulating CorporateGovernanceCompliance and RiskManagementTax ComplianceProtection of ShareholderEquityAnti-bribery andAnti-corruptionAnti-monopoly and Anti-improper competition
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Response to Climate ChangeEnvironmental Compliance Management
Pollutant Emissions
Waste TreatmentEnergy Utilization
Water Resources UtilizationCircular EconomyEcosystem and Biodiversity Protection
Dual MaterialityDual MaterialityDual MaterialityDual MaterialityDual MaterialityImpact MaterialityImpact MaterialityNeither Financial Materiality nor Impact MaterialityE
?.战略
Protection of Employees' Legal Rights and Interests
Employee Training and DevelopmentOccupational Health and SafetyData Security and Privacy ProtectionProduct and Service Safety and Quality
Supply Chain SecurityRural RevitalizationContribution to SocietyR&D and InnovationEqual Treatment of SMEsTechnology Ethics
Impact MaterialityImpact Materiality
Dual MaterialityImpact MaterialityDual MaterialityDual MaterialityImpact MaterialityImpact Materiality
Dual MaterialityNeither Financial Materiality nor Impact MaterialityNeither Financial Materiality nor Impact Materiality
TopicsMaterialityDimension
S
ESG GovernanceStakeholder CommunicationRegulating Corporate GovernanceCompliance and Risk Management
Tax ComplianceProtection of Shareholder EquityAnti-bribery and Anti-corruptionAnti-monopoly and Anti-improper Competition
Impact MaterialityImpact MaterialityImpact MaterialityImpact MaterialityImpact MaterialityImpact MaterialityImpact MaterialityImpact Materiality
G
Standardize Corporate GovernanceProtecting Investors' Rights and InterestsPracticing Business Ethics
CRYSTALOPTECH
Excellence in Governance,Building the Cornerstoneof Development
Our Philosophy
Crystal-Optech adheres to high-quality development, establishes an internal governance system with clear powers and respon-sibilities, and e?ectively prevents and controls risks. At the same time, the Company attaches importance to investor relationsmanagement, adheres to integrity management, abides by business ethics, and safeguards the Company's high-quality devel-opment.Our ActionsStandardize corporate governance, strengthen internal control, protect investors' rights and interests, and practice businessethicsResponsive SDGs
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Organizational Chart of Crystal-Optech
Crystal-Optech attaches importance to the diversi?ed construction of the Board of Directors and continues to optimize the compo-sition of the Board of Directors, fully considering factors such as gender, age, race, culture, educational background, skill knowl-edge, professional experience, etc., to ensure that it brings a diversi?ed perspective to the Company's strategic decisions. TheBoard of Directors of the Company consists of ?? directors, each with complementary specialties covering a wide range of ?eldssuch as business management, economics, ?nance, ?nancial accounting, auditing, legal compliance, electronics, etc., thus provid-ing good protection for the Company's decision-making.
Diversity
Standardize Corporate Governance
Good corporate governance is the foundation and guarantee of high-quality enterprise development. Crystal-Optech adheres tothe principle of compliance with the law, constantly optimizes the information disclosure mechanism, strengthens the communi-cation and exchange with investors, and strives to build a harmonious investor relations. At the same time, the Company furtherdeepens its internal governance, improves its management e?ectiveness, and transforms its governance advantages into a power-ful driving force to promote the high-quality development of the enterprise.Crystal-Optech strictly follows the requirements of the Company Law of the People's Republic of China(hereinafter referred to as theCompany Law), the Securities Law of the People's Republic of China (hereinafter referred to as the Securities Law), the Listing Rules ofShenzhen Stock Exchange and other relevant laws and regulations. Crystal-Optech has formulated the Articles of Association of Zhe-jiang Crystal-Optech Co., Ltd. (hereinafter referred to as the Articles of Association), forming a corporate governance structure con-sisting of the General Meeting of Shareholders, the Board of directors, the Board of Supervisors and the Senior Management, whichensures the Company's compliant operation and e?ective operation.
Governance Framework
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General Meeting of ShareholdersBoard of Supervisors
Board of Directors
CEOExecutive CommitteeSecurities A?airs CenterAudit and Supervision CenterO?ce of Change and Strategic Investment
General Manager's O?ce
Vehicle Optoelectronics DivisionCrystal-Optech JiangxiJiangxi JingchuangT-Best ElectronicsCrystal DisplayCrystal-Run OptoCrystal-SchottHangzhou BranchShenzhen BranchCrystal-Optech LinhaiCrystal-Optech Hongkong
Crystal-Optech American
Yeshili
Yeshili Xianju
CentralResearchInstitute
Technology
R&DCenterBusinessDevelopmentCenter
Middleground
IntelligentManufacturing
Center
SupplyChainCenter
Information
CenterFinance
CenterHRCenter
BaseOperationsCenter
COTCCOTVCOT Vietnam
Backstage
ABU?ABU?
CBU
The General Meeting of Shareholders is the highest authority of the Company.Crystal-Optech strictly follows the requirements ofthe Articles of Association,the Rules of Procedure for General Meetings of Shareholders and other rules and regulations. The noti?ca-tion, convocation, convening method, proceedings and voting method of the shareholders' meeting are all in compliance with theregulations, which fully guarantees the right of all shareholders to be informed of, participate in and make decisions on importantmatters. The General Meeting of Shareholders is conducted by a combination of on-site voting and online voting to facilitate theexercise of shareholders' rights.
General Meeting of Shareholders
Key Performance：
During the reporting period, the Company held a total of 3 meetings of the General Meeting of Shareholders, 1meeting of the annual General Meeting of Shareholders and 2 meetings of the extraordinary General Meeting ofShareholders, at which 15 proposals were reviewed and approved.
The Board of Directors is the decision-making body of the Company, elected bythe General Meeting of Shareholders, and is responsible for the formulation andexecution of the Company's day-to-day business decisions. The Company regu-lates the deliberation and decision-making procedures of the Board of Directorsin accordance with the provisions of the Articles of Associationand the Rules ofProcedure of the Board of Directors to ensure the timeliness and e?ectiveness ofthe board's decisions. The Board of Directors of the Company has set up four spe-cialized committees, namely the Strategy and Sustainable Development Commit-tee, the Remuneration and Appraisal Committee, the Nomination Committee andthe Audit Committee, each of which gives full play to its professional functionsand performs its duties and responsibilities in accordance with the working rulesto provide professional advice and support for the decisions of the Board of Direc-tors, and to safeguard the rights and interests of shareholders and creditors e?ec-tively. During the reporting period, the Company won the “Golden SecretaryAward” at the “???? China Listing Forum”, which not only recognized the profes-sional ability and outstanding performance of o?ce team of its Board of Direc-tors, but also acknowledged the Company's overall governance level andhigh-quality development path.
Board of Directors
Governance through the General Meeting of Shareholders, Board of Directors, and Board ofSupervisors
Trophy of“Golden Secretary Award”Crystal-Optech Japan
Crystal-Optech Vietnam
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Board of SupervisorsThe Board of Supervisors is the supervisory body of the Company, responsible for supervising the decisions and business activitiesof the Board of Directors and senior management. The Board of Supervisors carries out its work in strict accordance with therequirements of the Articles of Association, the Rules of Procedure of the Board of Supervisors and other provisions to ensure that itperforms its supervisory functions in a fair, just and e?ective manner, and safeguards the rights and interests of the shareholders,the Company and the employees. During the reporting period, the Board of Supervisors of the Company consisted of three supervi-sors, including ? shareholder representative supervisors and ? employee representative supervisor. The number and compositionof supervisors were in compliance with the requirements of laws and regulations.Key Performance:
During the reporting period, the Company held 5 meetings of the Board of Supervisors and reviewed 15 proposals.
Compliance ConstructionInternal Control
Crystal-Optech has formulated the Internal Audit System in accordance with the requirements of the Basic Standard for EnterpriseInternal Control, the Guidelines for the Governance of Listed Companies and other relevant laws and regulations, to establish a soundinternal audit system and to safeguard the healthy development of the business activities of the enterprise. The Company hasestablished the Audit Committee of the Board of Directors and the Audit Department to inspect and supervise the establishmentand implementation of the Company's internal control system and the authenticity and integrity of the Company's ?nancial infor-mation. During the reporting period, the Company carried out a total of ?? audit projects, with a ??% correction rate of auditissues.The Company continuously strengthens the construction of internal control and takes the e?ectiveness of internal control as ane?ective guarantee and support for its operation, and continuously promotes the construction of internal control in ?ve aspects:
internal environment, risk assessment, control activities, information and communication, and internal supervision. The Companyevaluates the e?ectiveness of internal control annually and discloses the internal control self-evaluation report truthfully.
Remuneration Management for Directors, Supervisors and Senior ManagementRemuneration Plan for Directors, Supervisors and Senior ManagementIn order to establish and improve the scienti?c and e?ective incentive and constraint mechanism, e?ectively mobilize and give fullplay to the enthusiasm and creativity of the directors within the Company, further enhance the Company's operation and manage-ment level and core competitiveness, and ensure the realization of the Company's strategies and medium- and long-term goals,Crystal-Optech has formulated the Directors' Compensation Program for FY???? in accordance with the Company Law, the Articlesof Association, and the Rules of Procedure of the Remuneration and Appraisal Committee of the Board of Directors. The internal direc-tors of the Company are subject to an annual salary system based on structural salary, which consists of three components: basicsalary, performance salary and e?ciency incentives. The remuneration of independent directors is determined, based on theallowance scheme considered and approved by the Board of Directors and the General Meeting of Shareholders; the internal super-visors of the Company are subject to an annual salary system based on structural salary, which consists of three components: basicsalary, performance salary and e?ciency incentives，and the additional allowance plan is reviewed and determined by the Board ofSupervisors and the General Meeting of Shareholders.
Transparency of Board RemunerationThe Remuneration and Appraisal Committee has been established under the Board of Directors of the Company, which is responsi-ble for formulating the remuneration system and remuneration standards for non-independent directors and senior management,and making reference to the industry standards and market levels to ensure the fairness and reasonableness of the remunerationplans. The remuneration plans of directors and senior management are submitted to the Board of Directors for consideration andapproval, of which the remuneration plans of directors, after being submitted to the Board of Directors for consideration andapproval, are required to be submitted to the General Meeting of Shareholders for consideration and approval. In order to ensurethe openness and transparency of the directors' remuneration plans, the Company discloses the announcement of the directors'remuneration plans to shareholders and the public in a timely manner. In addition, the Company also discloses the detailed infor-mation on the remuneration of directors, supervisors and senior management in the annual report, so as to facilitate shareholders'and the public's understanding and monitoring.
Tax Risk ManagementCrystal-Optech strictly follows the Law of the PRC on the Administration of Tax Collection, Provisional Regulations of the People'sRepublic of China on Value-Added Tax, Enterprise Income Tax Law of the People's Republic of China and other relevant national laws,regulations and policies. Crystal-Optech has formulated the Financial Management System, continuously improving the tax man-agement system, actively ful?lling the tax obligations and publicly disclosing the relevant tax situation, e?ectively reducing taxrisks and improving the Company's tax management level.
The Company has formulated the Working System of Independent Directors and other systems to clarify the responsibilities of inde-pendent directors and the way of performing their duties, to continuously improve the e?ciency of independent directors in per-forming their duties. During the reporting period, the Company further established and improved the working mechanism of thespecial meeting of independent directors to improve the performance e?ciency of independent directors and ensure their inde-pendence and professionalism in the decision-making process.The independent directors of the Company maintain full indepen-dence in their work, actively participate in relevant meetings, carefully consider the proposals, and e?ectively safeguard the rightsand interests of the Company and all shareholders. During the reporting period, the Company had ? independent directors,accounting for ??.??%.
Independence
Key Performance：
During the reporting period, the Company held 10 board meetings and passed 36 board resolutions;The special meeting of independent directors held 3 meetings and reviewed 3 proposals;The Strategy and Sustainable Development Committee held 1 meeting and reviewed 1 proposal;The Nomination Committee held 2 meetings and reviewed 2 proposals;The Audit Committee held 4 meetings and reviewed 18 proposals;The Remuneration and Appraisal Committee held 3 meetings and reviewed 5 proposals.
GenderEducation BackgroundAge
MaleFemale
Diversity of Board Members
UndergraduateDoctorMaster Degree
Over ?? years old??-?? years oldBelow ?? years old
16.67%
83.33%
50.00%
33.33%
16.67%
58.33%
25.00%
16.67%
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Investor Reception Day Event
Prevention of Related Party Transactions
In order to further standardize the management of the Company's related party transactions, Crystal-Optech has formulated theMeasures for Related Party Transactions to clarify the decision-making procedures and management responsibilities and division oflabor for related party transactions, to safeguard the lawful interests of the Company, the Company's shareholders and creditors,in particular the small and medium-sized investors, and to ensure that the contracts for related party transactions entered into bythe Company and its related parties are in line with the principles of fairness, impartiality and openness.Protecting Investors' Rights and Interests
Information DisclosureIn order to further standardize the Company's information disclosure behavior, improve the quality and transparency of informa-tion disclosure, and enhance the truthfulness, accuracy, completeness and timeliness of information disclosure, Crystal-Optechhas formulated the Rules for the Implementation of Information Disclosure Management System, Information Disclosure System forAccountability for Material Errors, Internal Reporting System for Material Information and other systems to establish an e?ective infor-mation disclosure management mechanism, to clarify the manner, frequency and standard of information disclosure, etc., and toactively safeguard the lawful rights and interests of the investors and other stakeholders.
Investor Relationship ManagementThe Company strengthens its interaction and communication with investors through various forms such as receiving investorsonline and o?ine, holding online performance brie?ngs, setting up investor hotlines, and actively participating in strategy meet-ings. The Company's management attaches importance to investor relations, and has participated in investor relations activitiesmany times, interacting with investors online and o?ine in an intimate manner. The attendance rate of the Company's core exec-utives at the performance presentation meeting was ???%. In order to communicate with investors from multiple angles andchannels and convey the Company's voice, the Company took the initiative to publish the "Reading the Company's RegularReports in One Picture" series, the "Digital Human Interpretation" series, and the "Investor Q&A Selection" on the o?cial publicaccount. Among them, for the "Digital Human Interpretation" series, the Company innovatively introduced the new quality pro-ductivity of the digital humans, producing the chairman's digital human video, explaining the key data of the periodic report forthe majority of investors, interpreting the driving factors behind the performance, and increasing the interest through the dynamicvideo. In these aspects, better results were achieved. In order to better serve the majority of investors, in ????, Crystal-Optech o?-cially launched the "Investor Relations" section on the Company's o?cial public account, including "Share Price Inquiry", "Finan-cial Overview", "Investor Calendar" and other functions, and introduced the AI digital human reply function, combining AI toolswith investor relations, interpreting the PPT content of the Company's performance brie?ng in an innovative way, allowing inves-tors to interact with the Company in a faster and more e?cient manner, and providing investors with more ways and channels tounderstand the Company's operating conditions. In ????, the Company won the "Best Institutional Coverage Award" in the "????Listed Company Awards - Annual Investment Data List" organized by Comein Finance, which is based on multi-dimensional data.Obtaining this award is proof that the Company's e?orts made in relations with investors are recognized by the market.
Key Performance:
During the reporting period, the Company disclosed 4 regular reports and 82 interim announcements.
Online Performance Brie?ng
Crystal-Optech "Investor Relations" Section
Crystal-Optech "Digital Human Interpretation" Series Section
Medal for "Best Institutional Coverage" Award
Key Performance:
During the reporting period, the Company e?ectively responded to 127 investor questionsthrough Easy Interaction, with a response rate of 100%;Took the initiative to disclose 13 records of investor relations activities;Organized 4 online regular report performance brie?ngs;Took the initiative to publish 4 "Reading the Company's Regular Reports and Performance Previews in One Picture";Held 1 "investor open exchange" meeting;Hosted 2 "Investors into Listed Companies Activity".
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During the reporting period, the Company conducted 7 anti-corruption training sessions with 6,480 participants.
Crystal-Optech advocates fair competition, strictly complies withnational laws and regulations such as the Anti-Monopoly Law of thePeople's Republic of China and the Anti-Unfair Competition Law of thePeople's Republic of China. The Company resolutely opposes the useof unfair means in market transactions and any behavior that harmscompetitors. The Company mutually maintains trade secrets with allparties in transactional activities and explicitly prohibits employeesfrom illegally obtaining, disclosing, or using the trade secrets ofothers.Additionally, the Company adheres to responsible marketing. All pub-lished advertisements, introductions, brochures, and announce-ments, etc., are truthful and credible, with no illegal activities such asfabricating or spreading false information to disrupt the market.During the reporting period, the Company was not involved in anylegal disputes related to anti-monopoly or anti-unfair competition.
Promoting Fair Competition
Crystal-Optech encourages all employees, partners, and any other informed individuals to report any corrupt practices or providerelevant evidences as witnesses in corruption investigations. The Company o?ers corresponding rewards based on investigationresults and enforces a strict policy of con?dentiality for whistleblower information. The Company has published reporting chan-nels on its o?cial website and o?cial account, and whistleblowers can contact investigators via an anonymous email or phone toprovide relevant clues.
Whistleblower Protection
Reporting email address: sjb@crystal-optech.comReporting phone: 0576-89811996
Publicity and Education Event on the Theme of "Combating Economic Crime and Optimizing the Business Environment"
Publicity and Education Event on the Theme of "Combating Economic Crime and Optimizing the BusinessEnvironment"Case
In November ????, Crystal-Optech joined hands with the Economic Investigation Brigade of Jiaojiang Public SecurityBureau to carry out the publicity and education event on the theme of "Fighting Economic Crimes Together and Maintain-ing a Fair and Transparent Business Environment". At the event, the Economic Investigation Brigade of Jiaojiang PublicSecurity Bureau took actual cases as a vehicle to introduce common economic crimes of private enterprises and empha-sized the importance of police-enterprise cooperation in maintaining a fair and transparent business environment.
Key Performance:
Crystal-Optech is committed to protecting the legitimate rights and interests of small and medium-sized shareholders and operatesin accordance with the pro?t distribution policy and share repurchase provisions in the Articles of Association. The Company's pro?tdistribution policy maintains continuity and stability while taking into account the long-term interests of the Company, the overallinterests of all shareholders and the sustainable development of the Company.
Protection of Shareholder Equity
Crystal-Optech strictly abides by the relevant laws and regulations on anti-corruption and anti-bribery, and has formulated theControl Procedures for Anti-Corruption, Commercial Bribery and Misappropriation of Public Funds and other systems to regulate andmanage the business behaviors of its employees. The Company's audit department is responsible for receiving and handlingreports and complaints regarding corruption, extortion and misappropriation of public funds. The Audit Committee is responsiblefor approving the results of the audit department.In order to implement the relevant provisions of the Company's integrity and self-discipline, and enhance the sense of integrity andself-discipline, the Company requires employees to sign a Letter of Commitment on Integrity and Self-Discipline, consciously resistcommercial bribery, and not use their powers and work convenience to seek undue advantage or damage the interests of theenterprise, thus protecting the Company's healthy, sustainable and rapid development.
Practicing Business Ethics
Anti-corruption ConstructionIntegrity Management System
From time to time, the Company conducts audits related to business ethics, focusing on the performance of its subsidiaries, supplychain, and manufacturing in terms of business ethics, and reports the results of the audits and corrective measures to the Board ofDirectors and management. The Company summarizes the problems identi?ed and discloses them to all employees through meet-ings, internal corporate platforms and other channels, thus increasing the transparency of problem handling. At the same time, theCompany regularly organizes and carries out re-inspection and revision of system documents such as Ten Articles of Self-Disciplinefor Cadres, Integrity and Honesty Agreement and Employee Handbook that have been issued, so as to continuously improve theinternal management system and enhance the level of business ethics.
Business Ethics Audit
"Anti-corruption" is the escort of Crystal's steady progress, and "integrity and self-discipline" is the cornerstone of Crystal's foun-dation industry success. In order to create "Sunshine Crystal", the Company regularly carries out anti-corruption training, strength-ens sta? education, establishes a culture of integrity, ensures that the Company is clean and upright, and builds a defense line ofintegrity. At the same time, the Company actively carries out anti-corruption publicity and publishes relevant tweets on the o?cialaccount to continuously improve employees' awareness of anti-corruption.
Creating an Integrity Atmosphere
Cash Dividend Distributed by the Company in the Past Three YearsIndicatorUnit????????????
Cash dividend per shareRMB?.??.?Total cash dividendRMB??,?????,???.????,???.??
%??.????.??
?.???,???.????.??Percentage of net pro?tattributable to shareholders ofthe listed company inconsolidated ?nancialstatements
Key Performance:
During the reporting period, the signing rate of the Company's Letter of Commitment on Integrity and Self-Disciplinewas 100% (for personnel above P4, the number of people who should sign was 510, and the actual numberof people who signed was 510).
CRYSTALOPTECH
Our Philosophy
Our Actions
Responsive SDGs
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Resource ManagementResponse to Climate ChangeEnvironmental Compliance Management
Green Leadership,Co-Creating aLow-Carbon Future
Crystal-Optech actively ful?lls its environmental protection responsibilities, guided by the principles of green development, eco-nomic e?ciency, and intelligence. The Company is committed to building an ecological civilization, strengthening pollutioncontrol and e?cient resource utilization, and leading the industry's low-carbon transition. Through concrete actions, the Com-pany demonstrates its ?rm belief and relentless pursuit of sustainable development, striving to create a harmonious coexis-tence of economic prosperity and ecological balance.
Addressing climate change, managing greenhouse gas emissions, improving the environmental management system, manag-ing pollutants and waste, optimizing energy utilization, conserving water resources, and implementing the principles of a circu-lar economy.
Emission Reduction Conference for Key Account Suppliers
Response to Climate Change
Climate change is profoundly impacting the operations and development of enterprises, while increasingly stringent policies andregulations brought new challenges. Crystal-Optech adheres to the concept of sustainable development, implements the nationalgoals of “carbon peaking and carbon neutrality”, and identi?es climate-related risks and opportunities by referencing the TCFD(Task Force on Climate Related Financial Disclosure) framework. The Company actively deals with climate change, seeking a pathto green transition amidst challenges, and demonstrating its commitment and insistence on values in the journey toward carbonreduction. Governance
The Company has established the Greenhouse Gas Management System, with the Public Utilities Department responsible for green-house gas management, including the veri?cation and calculation of greenhouse gas emissions, thereby strengthening the Compa-ny's climate governance. The Company has set up incentive bonuses for energy-saving and consumption-reduction project team toboost overall team motivation. Additionally, the Company focuses on enhancing its capabilities and knowledge in carbon manage-ment. It has participated in the emission reduction conference for key account suppliers and actively engaged in carbon manage-ment training.
"International Carbon Management Practices" Training Program
Crystal-Optech participated in international carbon management training, embracing the commitment of"carbon peaking and carbon neutrality"In April ????, Crystal-Optech enrolled in the "International Carbon Management Practices" training program under theIndustrial and Information Technology Talent Development Project. By learning about carbon footprint compilation andcorporate carbon account establishment, the Company can more accurately calculate carbon emissions, providing datasupport for formulating e?ective emission reduction measures.
Case
Type of Risk/Opportunity
Description ofRisk/Opportunity
Likelihood of
Occurrence
ImpactDuration
ExpectedFinancialImpact
Countermeasure
PhysicalRisks
TransformationRisks
AcuteRisk
PolicyRisk
ChronicRisk
High
High
Medium
Short Term
Medium andLong Term
Short,Medium andLong Term
Extreme weatherevents such aslow tempertures,snow, raistorms,and typhoonsmay damageinfrastructure,includingfactories,warehouses, andtransportationsystems.
Governmentsworldwide areincreasinglystringent in theirrequirements forgreenhouse gasaccounting andmanagement,with carbonemissionstandardsbecomingstricter.
Global warmingcauses sea levelto rise, leadingto hightemperatures,droughts, andother naturaldisasters. Thismay impact theCompany'sproduction andoperations.
Facility repairsand transporta-tion disruptionsmay a?ect rawmaterial supply,leading toproduction orservice interrup-tions, increasedcosts, andreducedrevenue.
Factoryproductione?ciency isa?ected, leadingto decreasedrevenue.
Failure todiscloseenvironmentalinformation inaccordance withrelevant laws,regulations, andpolicies mayresult inincreased ?nesor a?ect exportbusiness.
?. Establish andimprove emergencymanagementmechanisms anddevelop contingencyplans.?. Reinforce andprotect criticalequipment andbuildings.?. Monitor raw materialsupply conditions andestablish a supplychain risk managementmechanism.
?. Collect relevant lawsand regulations, updatethem quarterly, andconduct complianceevaluations.?. Continuouslymonitor disclosurerequirements fromregulatory andinvestment institutions,strengthen carbonemission management,and enhance climatechange-relatedinformation disclosure.
?. Develophigh-temperatureemergency plans andmonitor temperatureand humidity in realtime.?. Implementwater-saving measuresto reduce waterconsumption.
StrategyClimate change not only threatens the natural environment but also has profound impacts on corporate operations, supply chainstability, and long-term pro?tability. Crystal-Optech, following TCFD recommendations, identi?es climate-related risks and oppor-tunities, and formulates corresponding Countermeasures.
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Impact, Risk and Opportunity ManagementCrystal-Optech has established the Risk and Opportunity Countermeasures Management Procedure to continuously improve itsclimate risk management processes.
Climate Change Risk Management ProcessReferencing the TCFD disclosure framework, the Company identi?es risks and opportunities related toclimate change based on current national laws, regulations and policy requirements, while consideringsustainable development trends at home and abroad and its actual operational conditions.RiskIdenti?cation
Based on risk identi?cation, the Company evaluates the likelihood, impact duration and potential ?nancialimplications of climate change risks and opportunities.RiskAssessment
According to the risk assessment results, the Company takes measures to mitigate or eliminate the adversee?ects of climate change risks on its operations and ?nancial condition.
The Company's system management department conducts periodic evaluation of climate change risks toverify the e?ectiveness of the measures.
RiskEvaluation
RiskResponse
?.Likelihood of occurrence refers to the frequency or probability of a risk/opportunity occurring, primarily based on historicaloccurrence probability, external scenarios, progress in policy implementation, and expert predictions. The likelihood of occurrenceranges from "low" to "high".?.The Impact Duration refers to the di?erent periods when di?erent climate-related risks and opportunities will a?ect the Compa-ny. The Company categorizes the impact duration into short-term (?-? year), medium-term (?-? years), and long-term (over ?years).
High
PolicySupport
Short,Medium and
Long Term
Accelerate energytransition, reducereliance on traditionalfossil fuels, and lowercarbon emissions.Reduceoperating costs.
Governmentsoften introducepolicies toencourageenterprises toimprove resourcee?ciency inaddressingclimate change.These policiesinclude ?nancialsubsidies, taxincentives, andgreen ?nance,providingsubstantialsupport tobusinesses.
Technology
Risk
High
Low
As global demandsfor energyconservation andemissionreductionincrease,enterprises mayface technologicalbottlenecks inupgradingproductionprocesses toreduce carbonemissions, limitingimprovement inenergy e?ciency.
Consumerdemand isshifting towardgreen andlow-carbonproducts,intensifyingmarket competi-tion.
Increased R&Dcosts due to newtechnology R&D,potential ?nes,and compliancecosts.
If competitorslaunch opticalproducts withgreaterenvironmentaladvantages,demand forCrystal-Optech'straditional opticalproducts maydecline, leading toreduced revenue.
?. Strengthenmarket research andtrend analysis tounderstand changesin consumerenvironmentaldemands,competitors' greenproduct trends, andindustry policydirections.?. Accelerate greenproduct R&D andinnovation.?. Develop greenmarketing strategiesto address consumerconcerns abouteco-friendlyproducts.
?.StrengtheninternalR&D team building?.Foster industry-academia-researchcooperation.?.Explore technologyintroduction andrapidly improve theCompany's technicalcapabilities byintegrating externalmature technologies.
MarketRisk
Type of Risk/Opportunity
Type of Risk/OpportunityDescriptionof Risk/Opportunity
Descriptionof Risk/OpportunityLikelihood ofOccurrence
Likelihood ofOccurrenceImpactDuration
ImpactDurationExpectedFinancial Impact
ExpectedFinancial ImpactCountermeasure
Countermeasure
Transformati
onRisks
Opportunities
Technological-Opportunities
HighGrowingdemand forenergy-savingand carbon-reductiontechnologies.
Develop energy-saving and carbon-reductiontechnologies toreduce greenhousegas emissions.Reducedoperationalcosts.
Opportunities
Short,Medium andLong Term
Short,Medium andLong Term
Short,Medium andLong Term
PAGE39PAGE38
Indicators and Goals
In line with its operational policy of “Two Reductions, Three Declines, Strategic Focus, and Addressing Challenges”, Crystal-Optechis advancing energy conservation and consumption reduction e?orts to contribute to cost e?ciency and performance improve-ment. The Company has formulated its ???? energy conservation and consumption reduction work plan, with the objectives withinthe reporting period already achieved.
IndicatorObjectivesAchievement
Greenhouse Gas Emission Management
Clean Energy Usage
Greenhouse Gas EmissionsCrystal-Optech places high importance on greenhouse gas emission management, accurately calculating and strictly controllinggreenhouse gas emissions. The Company actively explores low-carbon development pathways, contributing to global sustainabledevelopment goals through concrete actions. The Company's greenhouse gas emissions from its operations primarily come frompurchased electricity, gasoline, diesel, and natural gas, with carbon dioxide as the main greenhouse gas. Fixed emission sourcesaccount for ??.??%, mobile emission sources for ?.??%, and fugitive emissions are negligible.
To diversify carbon reduction pathways and align with national carbon neutrality goals, Crystal-Optech is enhancing its renewableenergy capacity through green electricity procurement, photovoltaic systems, and energy storage facilities, reducing reliance ontraditional fossil fuels and lowering carbon emissions.In ????, Crystal-Optech's distributed photovoltaic projects reached a total installed capacity of ?.??? MW, including ?.? MW at theTaizhou Binhai plant, ?.?? MW at Crystal-Optech Jiangxi, and ?.??? MW at Yeshili. The Crystal-Optech Linhai distributed photovol-taic project is also under active implementation.Photovoltaic Power Generation
IndicatorUnit202220232024
Greenhouse Gas Emissions
(Scope ?)Greenhouse Gas Emissions
(Scope ?)Total Greenhouse GasEmissions (Scope ? and Scope ?)
Greenhouse Gas Emission
IntensityReduction of GHG Emissions
tCO?etCO?etCO?etCO?e /??,??? yuantCO?e
???.????,???.????,???.???.????,???.??
???.????,???.????,???.??
?.?????,???.??
???.????,???.????,???.??
?.?????,???.??
?.??? MW at Yeshili
?.? MW at Taizhou Binhai
?.?? MW at Crystal-Optech Jiangxi
?.? MW at Crystal-Optech Linhai (new installation)Energy Storage ? MW/?? MWh Project
Carbon emission equivalent per
RMB??,??? of output value
A ?% year-on-year decrease from ?
??? to ????
Achieved, with a ??.?% reduction
PAGE41PAGE40
The Company continues to increase its green electricity procurement ratio, applying it across all production and operational pro-cesses. In ????, the Company purchased Green Electricity Certi?cates with ?? million kWh; in ????, it purchased Green ElectricityCerti?cates with ??? million kWh, where the Binhai plant alone purchased Green Electricity Certi?cates with ??.??? million kWh.
Crystal-Optech strictly complies with national laws and regulations such as the Environmental Protection Law of the People's Repub-lic of China, the Water Pollution Prevention and Control Law of the People's Republic of China, the Law of the People's Republic ofChina on the Prevention and Control of Atmospheric Pollution, and the Law of the People's Republic of China on the Prevention andControl of Environmental Pollution by Solid Waste, as well as local operational requirements. The Company actively promotes theconstruction of its environmental management system, ensuring its stable and e?cient operation to deliver practical environmen-tal management outcomes. The main categories of pollutants and waste generated by the Company include, but are not limited to,production wastewater, process exhaust gases, solid waste, and noise generated during production processes. These pollutantsand wastes primarily originate from etching, screen printing, photolithography, coating, and cleaning processes. During the report-ing period, the Company did not incur any penalties for violations of environmental management laws and regulations, and therewere no signi?cant de?ciencies in its environmental monitoring plans or risk management measures.
The Company actively participates in the carbon trading market, optimizing carbon asset allocation through ?exible market mech-anisms to preserve and increase the value of carbon assets. This demonstrates its commitment to addressing climate change andits dedication to green development.Carbon Asset Management
Green Electricity Certi?cate Transaction Vouchers
Green Electricity Procurement
Environmental Management System
Crystal-Optech adheres to the environmental policy of “controlling environmental substances and creating a green environment,”continuously improving its environmental management system. The Company accurately identi?es environmental substances thatmay be involved in various production and operational processes, implements strict control measures to minimize the use andemission of harmful substances, reduces potential impacts on the ecological environment, and continues to set an example in the?eld of environmental protection.
Environmental Compliance Management
The Company has formulated and implemented environmental management systems such as the Wastewater Management Mea-sures, Exhaust Gas Management Measures, Noise Management Measures, Industrial Waste Management Measures, Environmental AuditRules, and Environmental, Occupational Health, and Safety Performance Monitoring and Measurement, and Compliance EvaluationControl Procedures. The Company has established an environmental management team led by the General Manager, with clearresponsibilities and authorities assigned to each department, incorporating environmental protection into performance evalua-tions to ensure that the Company's production and operational activities comply with relevant legal and regulatory requirements.
Governance
Environmental Organization Chart
EHS DepartmentLogistics DepartmentPlant Engineering Department
ABU?ABU?CBU
Base Operation
Center
BusinessDivision
Subsidiaries
FunctionalPlatform
GeneralManager
DRI
Crystal-Optech participated in marine blue carbon (shell?sh) tradingCase
In November ????, a marine blue carbon (shell?sh) trading project—the Dachen Island Mussel Farming Carbon Sequestra-tion Project—was successfully auctioned in Jiaojiang District, Taizhou City, Zhejiang Province. Crystal-Optech acquired?,??? tons of shell?sh carbon sinks for a total of RMB ???,???, equivalent to RMB ??.? per ton. Wang Zhenyu, General Man-ager of Crystal-Optech, stated that the ?,??? tons of shell?sh carbon sinks would serve as a strategic carbon reserve andinvestment, positioning the Company advantageously in carbon asset trading.
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During the reporting period, Crystal-Optech and its subsidiaries—New T.Best, Crystal-Optech Jiangxi, Jiangxi Jingchuang, Yeshiliand Jingte Optics—were reviewed comply with ISO ?????:???? standards, and obtained corresponding certi?cates.
Yeshili: Zero-Waste City Cell
Crystal-Optech' s EnvironmentalManagement System Certi?cation
Certi?cate
New T.Best's Environmental
Management SystemCerti?cation Certi?cate
Yeshili's EnvironmentalManagement SystemCerti?cation Certi?cate
Crystal-Schott's Environmental
Management SystemCerti?cation Certi?cate
Crystal-Optech Vietnam'sEnvironmental ManagementSystem Certi?cation Certi?cate
Crystal-Optech Jiangxi'sEnvironmental ManagementSystem Certi?cation Certi?cate
Jiangxi Jingchuang'sEnvironmental ManagementSystem Certi?cation Certi?cate
Crystal-Optech: "Green Manufacturing" Enterprise
IndicatorUnit202220232024
Environmental InvestmentEnvironmental Protection
Taxes Paid
RMB??,???RMB??,???
???.???.??
???.??
?.??
???.???.??
Type of Risk/Opportunity
Description ofRisk/Opportunity
Likelihood ofOccurrence
ExpectedFinancialImpactImpact DurationCountermeasure
PolicyRisk
RiskShort TermHigh
The governmentstrengthenspollution andwaste preventionand control,requiring theCompany to investmore intechnologyupgrades andmanagement toreduce leakscaused by suddenenvironmentalincidents.
?. Pay attention toand comply with thelaws and regulationson pollutants andwaste.?. Maintain andupdateenvironmentalprotection facilitiespromptly.?. Conduct regularenvironmental riskinspections.
Potential high?nes andlitigationcompensation,increasingoperationalcosts.
ResourceE?ciencyOpportunities
Long TermHigh
Reduce waterconsumption andwastewaterdischarge throughwastewater reuseand water-savingtechnologies;upgrade exhaustgas treatmentequipment/technology andswitch to cleanerenergy sources toimprove energye?ciency andreduce emissions;enhance resourcee?ciency andreduce wastethrough wasteclassi?cation,recycling, andreuse.
?.Optimize productionprocesses andintroduce advancedtechnologies andequipment to improveresource utilization.?.Strengthen energymanagement andwaste resourceutilization, tappingpotential across allprocesses to achievee?cient resourceallocation and bene?tconversion.
Reducedoperationalcosts.
Crystal-Optech is classi?ed as a key pollutant discharge unit. The Company always maintains a high degree of alertness to environ-mental issues, and regards the identi?cation of environment-related risks and opportunities as a key aspect of corporate develop-ment. The Company emphasizes risk prevention and control, strengthens monitoring and early warning, formulates Countermea-sures, and practices green development concepts.
Strategy
In ????, Crystal-Optech was recognized as a "Green Manufacturing" enterprise by the Ministry of Industry and Information Technol-ogy. In December ????, the Company passed the clean production audit, implementing ?? projects that reduced water and energyconsumption and pollutant generation, to achieve energy conservation, consumption reduction, pollution reduction, and e?cien-cy improvement. In September ????, the Company was awarded the title of "Zero-Waste Enterprise Group". Subsidiary Yeshilipassed the "Zero-Waste Factory" assessment in Zhejiang Province in November ???? and was recognized as a "Zero-Waste CityCell".
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Key Performance:
Key Performance:
Environmental Factor Identi?cation and EvaluationTo further strengthen environmental risk control, the Company has established systems such as the Environmental Factor Identi?-cation and Evaluation Control Procedure and the Risk and Opportunity Countermeasures Management Procedure. Departments andbusiness units ?rst conduct self-identi?cation, then con?rm the identi?ed environmental factors, output the List of Signi?cant Envi-ronmental Factors, and conduct regular monitoring and reviews. Each department designates a dedicated person responsible forrisk identi?cation, mastering risk identi?cation methods to fully identify and assess existing risks, achieving e?cient environmentalrisk control.
Identi?cation of Hidden HazardsCrystal-Optech places great importance on environmental management hazard investigations. Monthly inspections are conductedacross production processes, with detailed records of identi?ed issues, clear responsibilities and deadlines for recti?cation, andfollow-up by designated personnel until hazards are resolved, ensuring environmental safety.
Emergency Response DrillsThe Company has established the Emergency Preparedness and Response Procedure,with the Base Operation Center's EHS Depart-ment responsible for developing and implementing emergency response plans to ensure rapid, e?cient, and scienti?c responsesto sudden environmental incidents, minimizing environmental impacts and safeguarding ecological safety. To ensure the suitabili-ty, e?ectiveness, and adequacy of emergency plans, the Company conducts annual emergency drills to test the scienti?c feasibilityof the plans.
Impact, Risk, and Opportunity Management
In 2024, the Company conducted 42 environmental inspections and 12 hazard investigations, with a 100%recti?cation rate.
In 2024, Crystal-Optech and its subsidiaries conducted a total of 4 environmental emergency drills.
Repair Team Arrived for RepairsEmergency Monitoring Team Conducted Sampling
Crystal-Optech emergency drill for exhaust gas facility malfunctionCase
In May ????, Crystal-Optech's Base Operation Center conducted an emergency drill for exhaust gas facility malfunctions.By simulating an alarm in the PSS workshop and abnormal exhaust gas facility operations, the Company enhanced itsemergency response capabilities for sudden environmental incidents, ensuring timely and e?ective handling to reducelosses and casualties.
Pollutant EmissionsCrystal-Optech consistently prioritizes reducing pollutant emissions as a core task of its environmental management. The Compa-ny strictly implements the "Environmental Impact Assessment System" and the "Three Simultaneities" system (i.e., environmentalprotection facilities are designed simultaneously, constructed simultaneously, and put into operation simultaneously with themain project). This ensures that all new, modi?ed, and expanded projects undergo environmental impact assessments and areconstructed in compliance with the "Three 'Simultaneously'" principle to minimize environmental impacts. The Company partici-pates in the emissions trading market in accordance with laws and regulations, obtaining reasonable emission quotas through faircompetition to ensure production activities remain within legal emission frameworks. In line with the Measures of National KeyMonitoring Enterprises for Self-Monitoring and Information Disclosure (Trial), the Company has developed an environmentalself-monitoring plan and discloses the information on the Zhejiang Enterprise Self-Monitoring Information Disclosure Platform.Additionally, the Company regularly commissions third-party testing agencies to monitor wastewater, exhaust gases, and noise.During the reporting period, all test results met standards, with no adverse e?ects on employees or surrounding residents.
IndicatorUnit202220232024
Number of Environmental
Training Sessions
Number of Participants inEnvironmental TrainingTotal Hours ofEnvironmental Training
TimesPerson-timesHour
??????
??????
??????
Environmental Awareness CampaignsEnvironmental Training
Crystal-Optech sets annual environmental protection goals in accordance with the requirements of its environmental managementsystem and strictly monitors various pollution and waste emission indicators to ensure continuous improvement in environmentalmanagement, demonstrating the Company's commitment to green practices.Indicators and Goals
Environmental Training and Awareness
IndicatorGoalsAchievement
Exhaust Gas, Wastewater, Noise
Waste Container Disposal
Solid Waste(including Hazardous Waste)
Zero improper disposal,???% recycled to quali?ed unitsZero improper disposal,??% container recycling rate
Zero pollution incidents
AchievedAchievedAchieved
Crystal-Optech regularly conducts diverse environmental training and awareness activities to ensure that every employee deeplyunderstands the importance and urgency of environmental protection. The Company promotes environmental awareness by post-ing environmental posters in o?ce areas, playing promotional videos, and organizing o?ine environmental training sessions.These e?orts help employees internalize environmental concepts and translate them into actions, injecting continuous momentuminto the Company's green development.
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The Company's exhaust gases mainly originate from the product manufacturing process. The Company is equipped with ? sets ofexhaust gas treatment facilities, which use activated carbon adsorption and acid-base scrubbers. After treatment, the emissions ofnon-methane hydrocarbon, methanol, xylene, and nitrogen oxides meet the new source secondary standards under the Compre-hensive Emission Standard of Air Pollutants (GB ?????-????); ethyl acetate and cyclohexanone meet the calculated values under theTechnical Methods for Making Local Emission Standards of Air Pollutants (GB/T ????-????); and VOCs in the plant comply with theStandard for Fugitive Emission of Volatile Organic Compounds (GB ?????-????).
Exhaust Gas Management
Resource ManagementCrystal-Optech deeply explores e?cient pathways for energy utilization, continuously optimizes water resource recycling and con-servation models, and implements re?ned resource management to vigorously develop a circular economy. These e?orts lay asolid foundation for the Company's green transformation and long-term stable development.
The Company strictly implements a waste classi?cation system, separating recyclables, non-recyclables, hazardous waste, andgeneral waste. Recyclables such as paper, plastic, and metal are sent to recycling stations for reuse. Non-recyclables are sent topower plants for energy recovery through incineration. Hazardous waste is transported to specialized treatment facilities for safedisposal.
Waste Recycling and Reuse
The Company strictly adheres to the Emission Standard for Industrial Enterprises Noise at Boundary (GB ?????-????) for noise moni-toring. Noise sources under control include those produced by the operation of production equipment such as air compressors,fans, pumps, and chillers, as well as noise generated by contractors during construction within the plant area. Noise reductionmeasures include setting up soundproof rooms, installing soundproof covers on strong noise units, applying sound absorptiontreatment in workplaces, installing silencers on sound sources or sound pathways, and providing vibration isolation treatment forequipment. The Base Operation Center's EHS Department commissions quali?ed occupational health agencies to monitor work-shop noise quarterly, with all results meeting standards.
Noise Management
Waste Gas Emissions
Volatile OrganicCompounds (VOC)
TonneTonne
?.????.???
?.????.???
?.????.???
The Company's wastewater primarily originates from cold processing and various cleaning processes. The Company operateswastewater treatment facilities with capacities of ?,??? t/d and ?,??? t/d, using physical sedimentation and secondary advancedtreatment methods. The discharged wastewater meets the indirect discharge standards for "Display Devices and OptoelectronicDevices" under the Discharge Standard of Water Pollutants for Electronic Industry(GB ?????-????), with ammonia nitrogen levelscomplying with the Indirect Discharge Limits for Nitrogen and Phosphorus Pollutants in Industrial Wastewater (DB??/???-????).During the reporting period, ???% of the Company's wastewater was treated and discharged in compliance with standards.
Wastewater Management
IndicatorUnit202220232024
Pollutant Monitoring
Compliance rateSynchronization Rate ofEnvironmental Protection
FacilitiesImplementation rate of"Three Simultaneous"Environmental Protectionfor Construction Projects
%%%?????????
??????
??????
??????
Wastewater DischargeChemical Oxygen Demand (COD)Ammonia Nitrogen (NH?-N)Total Nitrogen (N)
TonneTonneTonneTonne
?,???,???.?????.???.????.??
?,???,???.?????.???.???.??
?,???,???.?????.???.???.??
Waste ManagementCrystal-Optech places high importance on waste prevention, reduction, and recycling. By strengthening standardized manage-ment and compliant disposal of waste, the Company ensures compliance with legal requirements and minimizes environmentalpollution and damage. General solid waste generated during production includes biochemical sludge, waste glass, scrap metal,plastic waste, cardboard, and other industrial waste. Hazardous waste includes waste oil, waste stripping solution, waste strongalkali solution, spent activated carbon, and waste mineral oil. Hazardous waste is temporarily stored in a waste storage area withwind, rain, sun, and leak protection. All hazardous waste is transported and disposed of harmlessly by quali?ed units.
General WasteProduction VolumeGeneral WasteRecycling Volume
General WasteDisposal VolumeHazardous WasteProduction VolumeHazardous WasteDisposal VolumeHazardous Waste
Recycling Rate
TonneTonneTonneTonneTonne%
???.?????.?????.?????.?????.????
?,???.?????.???,???.?????.?????.????
?,???.???,???.???,???.?????.?????.????
Optimizing Production ProcessesBy selecting precise materials, controlling input quantities, and adjusting reaction conditions, the Company reduces by-productgeneration and waste emissions. Process adjustments in cutting technology improve raw material utilization and reduce scrapgeneration, thereby reducing waste emissions.
Strengthening Material ManagementThe Company implements ?ne management of materials during production to ensure rational use and recycling. Reusable materi-als such as dust-free cloths, transfer boxes, and packaging boxes are recycled and reused.
Promoting Environmental AwarenessThe Company actively conducts environmental awareness campaigns to enhance employees' environmental consciousness andencourage them to reduce waste generation in their daily work.
Reducing Waste Generation
IndicatorUnit202220232024
IndicatorUnit202220232024
IndicatorUnit202220232024
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Resource Management System
Crystal Energy Conservation andConsumption Reduction Organizational Structure
(General Manager)Base Operations Center
Energy Conservation and Consumption Reduction Organizational Structure
Crystal-Optech strictly complies with the Law of the People's Republic of China on Conserving Energy and the Water Law of the Peo-ple's Republic of China and other relevant laws and regulations and rules, implementing re?ned resource management to achievee?cient resource utilization. The main types of energy used by the Company include natural gas, diesel, gasoline, electricity, andother clean energy sources; the primary source of production water is municipal supply.Energy is a crucial material foundation for national economic development. To ensure sustainable economic development, Crys-tal-Optech has established the Energy Management System,adopting technically feasible and economically reasonable measuresto reduce energy consumption losses and waste in all production processes, thereby utilizing various energy sources more e?ec-tively and e?ciently. The Company has established the Crystal Energy Conservation and Consumption Reduction Organization, ledby the General Manager, with the Base Operation Center taking the lead to guide various business divisions and subsidiaries inachieving the Company's energy conservation and consumption reduction goals.
Governance
Strategy
Impact, Risk, and Opportunity Management
Type of Risk/Opportunity
Description ofRisk/Opportunity
Likelihood of
Occurrence
ImpactDuration
ExpectedFinancialImpact
Countermeasure
Opportunities
MarketRiskRisk
PolicyOpportunities
Short andMedium Term
Medium and
Long Term
High
High
New policies mayincrease energyusage costs (e.g.,carbon taxes) oralter energymarket supplystructures,a?ecting theCompany's coststructure andenergy budget.
?. Adopt energyhedging strategiesand adjust productionplans.?. Optimize energyusage structure andcontinue promotingphotovoltaic powergeneration and greenelectricity trading.
Monitor governmentpolicies closely.
Increasedenergy costsand reducedpro?ts.
Reducedinvestmentcosts andincreasedrevenuestreams.
Subsidies,incentives andpreferential loansintroduced by thegovernment toencouragecompanies toadopt cleanenergy or improveenergy e?ciency.
With the ?rm pursuit of sustainable development, Crystal-Optech deeply analyzes the energy consumption structure within its pro-duction processes. Using scienti?c and rigorous methods, the Company accurately identi?es and comprehensively assesses risksand opportunities.
Crystal-Optech consistently pursues e?cient resource utilization, setting phased goals to comprehensively drive the Company'sproduction and operations toward green, low-carbon, and circular development.
The Company has established an energy usage ledger and the Seed Energy System to record and analyze energy consumption,identify and evaluate risks and opportunities that may be faced in the process of energy utilization, and formulate correspondingstrategies and improvement measures to e?ectively improve the e?ciency of corporate energy utilization, reduce energy costs,reduce the impact on the environment, and promote the sustainable development of the enterprise.Indicators and Goals
IndicatorGoalsAchievement
Electricity Consumption perRMB ??,??? of Output ValueWater Consumption perRMB ??,??? of Output Value
A ?% year-on-year decrease from ???? to ????
??% year-over-year decreasein ???? compared to ????
Achieved, with a ??.??% reductionAchieved, with a ??.??% reductionMonthly Energy Conservation Meetings
In order to ensure the e?ective implementation of energy saving and consumption reduction incentives, the Company has estab-lished corresponding assessment indicators and supervision mechanisms. Additionally, the Company focuses on cultivating ener-gy-saving awareness and capabilities among team members. By regularly holding monthly energy conservation meetings, employ-ees can accurately identify and e?ectively implement energy-saving measures in their daily work, translating environmental con-cepts into practical actions and helping the Company continuously advance on the path of improving resource utilization e?ciency.
ABU?
ABU?
CBU
Jingjing
Jingte
Research Institute
Crystal-Optech Linhai
Crystal-Optech Jiangxi
Yeshili
AutomotiveOptoelectronics
Crystal-Optech Vietnam
Base Operation Center
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Energy Utilization
Crystal-Optech anchors energy conservation practices as one of the core power sources driving the Company's sustainable devel-opment. Through the implementation of a series of scienti?c and reasonable energy-saving measures, the Company controlsenergy consumption at the source, optimizes energy utilization structures, and achieves a win-win situation for both environmen-tal and economic bene?ts.During the reporting period, the Company had two representative and promotional projects. For the project "Evaporation Coater -Di?usion Pump Oil Change and Heating Power Saving Renovation", after the transformation, the current of a single di?usion pumpof the machine decreased by approximately ?A. Combined with the di?usion pump to increase the power regulator and full-syn-thetic di?usion pump oil, a single coating machine can save ???-??? kWh of electricity per day, the Company can cut down RMB ?.?million on electricity costs in a year. In ????, the renovation completion rate was ??.??%. For project "Coating Equipment Ener-gy-Saving Solution", the whole company can cut down RMB ?.???? million per year in total.
The BA Chiller Plant Group Control System is one of the smart hubs for Crystal's green development. Among them, thechiller group control function uses intelligent algorithms and automated control to adjust operating conditions. Duringperiods of low production demand, the system automatically reduces the power of chillers or decreases the number ofoperating units, avoiding non-essential energy consumption. During peak production periods, it can automaticallyincrease the number of operating units to ensure su?cient supply of cooling capacity, guaranteeing the smooth progressof production. The unmanned operation feature of the BA system saves signi?cant labor and energy costs while reducingenergy waste caused by human factors, becoming an important booster on the road of green emission reduction.
Seed Energy Management System ? the Foundation of Re?ned Energy Management
Crystal-Optech's Seed Energy Management System covers the measurement of pure water, RO water, tap water, electric-ity, CDA (compressed air), nitrogen (N?), and chilled water. With the implementation of the re?ned management model,the Company is able to accurately control energy consumption in an all-round way, realizing the visualization and re?ne-ment of energy management.
Case
BA Chiller Plant Group Control System ? the Smart Hub for E?cient Energy SavingCase
Seed Energy Management System
TypeUnit202220232024
Natural Gas
PetrolDieselTotal Purchased ElectricityNon-fossil Energy ConsumptionOther Clean Energy UsageTotal Energy Consumption
??,??? m?TonneTonnekWhkWhkWhtce
??.????.???.?????,???,???.??
?,???,???.????,???.????,???.??
??.????.??.?????,???,???.???,???,???.????,???,???.????,???.??
??.????.????.?????,???,???.???,???,???.?????,???,???.????,???.??
Crystal-Optech Energy Consumption Overview
The Company achieves water conservation goals through process optimization, the introduction of water-saving equipment, andwastewater recycling.Optimizing Production ProcessesIn cleaning processes, advanced laser cutting technology is used instead of the traditional water-based dicing methods, includingthe use of advanced ultrasonic cleaning technology and precise constant ?ow control, which improves the cleaning e?ciency andsigni?cantly reduces water consumption at the same time.Introducing Water-Saving EquipmentThe Company actively introduces a series of advanced water production and water conservation equipment, such as ultrapurewater equipment, high-e?ciency cooling towers, constant-?ow devices and so on.
Technological Upgrades for Water Conservation
Water Resources Utilization
The production process of Crystal-Optech involves a number of steps, which require a certain quality and volume of water for pro-duction. For example, in the manufacturing of optical products, processes such as cleaning and dicing require large amounts ofpure water and RO water to ensure product quality and precision. Additionally, the cooling of production equipment demands astable and continuous water supply. In order to strengthen the management of water conservation in daily work and to protectand rationally utilize the Company's water resources, the Company has established the Planned Water Use Management Systemand the Water Conservation Management System.
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In order to enhance employees' awareness of water conservation, the Company organizes diversi?ed water conservation trainingand publicity activities. By organizing lectures on water conservation, distributing publicity materials on water conservation andcarrying out water conservation competitions, the Company makes all employees understand the importance and methods ofwater conservation, and cultivates good habits of water conservation in their daily work and life.
Enhancing Water Conservation Awareness
Circular EconomyCrystal-Optech is actively exploring and deeply cultivating in the ?eld of circular economy, and is committed to building anall-round and multi-level circular economy ecosystem. The Company has formulated the Recyclable Resource Utilization Manage-ment Regulations and developed green design focuses at the stage of the whole life cycle of the products, vigorously implementedclean production through technological innovation and process optimization, maximized the e?ciency of material utilization,reduced the burden on the environment, and led the industry towards the road of high-quality development of green, low-carbonand recycling.
Crystal-Optech Water Resource UtilizationTypeUnit202220232024Total Water Consumption
Intensity of WaterConsumptionRecycled Water ConsumptionProportion of Recycled Waterin Total Water Consumption
Tonnetons/??,??? yuanTonne
%
?,???,???.???.?????,???.????
?,???,???.???.?????,???.????
?,???,???.??
?.???,???,???.??
??
Project NameProject TypeWater Conservation Bene?t
Ultra-concentrated water reuse
Rinse water reuseRO concentrated water reuseUltra-concentrated water recoveryOptimizing cleaning processesClean room/restroom faucet renovation
Process optimization
Process optimizationWastewater recyclingWastewater recyclingWastewater recyclingWastewater recyclingProcess optimizationProcess optimizationProcess optimizationWastewater recyclingProcess optimizationProcess optimizationProcess optimization
???,??? tons???, ??? tons???, ??? tons???, ??? tons??, ??? tons?,??? tons?,??? tons?,??? tons?,??? tons?,??? tons??, ??? tons
?,??? tons
?,??? tons
Water Conservation Posters
Maintaining a relative balancebetween water production andconsumption to prevent excessivere?ux and tank over?owOptimizing the water productionsequence for di?erent types ofmachinery to reduce tap water usage
Converting slow-pull heating tanksinto circulation tanksWater treatment systems forscribing and cutting machinesInstalling automatic throttle controldevices on cleaning machinesInstalling constant-?owdevices on cleaning machinesReuse of cooling tower rinse water
Crystal-Optech Material RecyclingProduct Life Cycle StageGreen Design FocusPerformance Progress
Reducing plastic and packaging materials
Packaging material recyclingDistribution, storage,and transportation
Increasing the number of items perpackaging box and eliminatingbubble wrap, saving ??% annually inpackaging material usageRecycling approximately ??? tons ofplastic trays, ?? tons of woodenpallets, and ?? tons of cardboard,totaling a reduction of ??? tons of
waste generated
Key Water Conservation Projects at Crystal-Optech
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Green O?ceThe Company is fully committed to the implementation of the green o?ce concept, and through the release of the Low-CarbonLifestyle Initiative, calls on all employees to start from the smallest actions, and continues to enhance the eco-e?ciency of thecorporate o?ce segment, helping to build a new model of green and low-carbon development.
Reducing Disposable SuppliesEnergy ConservationGarbage Sorting
Energy Conservation
Green Travel
Energy-e?cient andEco-friendly Procurement
Paper-savingEliminating WasteReducing Disposable Supplies
O?ce areas: Make full use of natural light and reduce the time of lighting; ensurethat computers, printers and other electrical equipment are turned o? in a timelymanner when leaving the o?ce;Meeting rooms: Improve meeting e?ciency, rationalize meeting time and reduceequipment and air-conditioning energy consumption;Set the central air conditioning in my o?ce area to a uniform temperature of ??degrees and timed it to turn on and o? every day to save energy;Use LED lights with light sensing and timely control for lighting in the factory area,corridors, and basements to save energy;
Use recycled water for ?ushing toilets in the factory area.
Encourage everyone to choose public transportation, bike or walk to and from work.For necessary driving trips, carpooling is encouraged to reduce vehicle emissions;Reduce business travel frequency and prioritize low-carbon travel options such ashigh-speed rail.Promote paperless o?ce practices, reduce paper usage. Documents are circulatedand kept in electronic form as far as possible. When printing, use double-sided print-ing to minimize paper waste.
Minimize the use of disposable cups and utensils in the o?ce, encouraging employ-ees to bring their own cups and cutlery.Prioritize energy-e?cient and eco-friendly equipment and o?ce supplies duringprocurement.
Encourage employees to take reasonable portions in the cafeteria to reduce foodwaste.
Value Co-creation,Writing a New Chapterof Development
Crystal-Optech adhere to the innovation-driven development strategy, with a global vision and pattern to promote R & D inno-vation, market development, product development, resource integration, organization and team building; practice responsiblepurchasing, build a safe and reliable supply chain synergy system; do a good job in the whole life cycle management, standard-ize the use of hazardous substances and disposal, to provide customers with high-quality products; the implementation of themain responsibility for information security management and safeguard data security e?ectively.
Our Philosophy
Our ActionsWe insist on R&D innovation, strengthening supply chain management, responsible purchasing, con?ict minerals management,full life cycle quality management, hazardous substance management, optimizing customer service, information security andprivacy protectionResponsive SDGs
CRYSTALOPTECH
Data Security Guarantee
Innovation-DrivenSupply Chain ManagementProduct and Service Safety and Quality
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Innovation-Driven
The Company attaches great importance to R&D and innovation, formulates IPD (Integrated Product Development) ManagementMeasures and other systems, takes market demand as the driving force for product development, optimizes the investment portfo-lio, relies on project management and builds a structured R&D process, and realizes the product development process of cross-de-partmental teams. The management approach divides the R&D project into ?ve stages according to the process, and conductsnodal reviews at each stage, i.e., TR? Requirement Review, TR? Project Establishment Review, TR? Technical Review, TR? TechnicalReview, and TR? Project Completion Review, which e?ectively manages the entire project R&D process.
Governance
R&D Organizational Structure
TechnologyR&D CenterTechnical Planning
DepartmentFilm Research
Institute
XR Research
Institute
Guimeng Research
Institute
Micro-NanoResearch Institute
AutomationResearch Institute
Trial Production
CenterThe Company regards the construction of innovation team as the core of building the enterprise technology innovation system,and has established an enterprise university with a leadership academy and an engineering academy to train the managementteam and senior engineer team for the Company. At the same time, the Company continues to introduce high-precision scienti?cand technological talents, and builds a multidisciplinary internal innovation team to ensure that the company always maintains aleading position in technology in the ?erce market competition.
Innovation Management System
Crystal-Optech builds its core competitiveness driven by technology and is committed to becoming a global provider of outstand-ing optical interactive core components and solutions. The Company keeps up with the industry's cutting-edge continuous techno-logical innovation, gathering advantageous innovation resources, building a perfect supporting mechanism for talents and techno-logical innovation system, providing inexhaustible power for innovation and development.
Key IndicatorsUnit2024
Number of R&D employeesProportion of R&D employees
Person%
?,?????.??
R&D Team
Educational Background Structure
UndergraduateMaster degreeand aboveJunior collegestudents andbelow??.??%?.??%
??.??%
Age Structure
Below ???? - ?? years oldOver ?? years old old
??.??%
?.??%
??.??%
Crystal-Optech integrates risk management into every aspect of project management to minimize unnecessary losses and ensurethe robustness and continuity of its business by identifying, assessing, managing and monitoring risks.
Impact, Risk, and Opportunity Management
Risk identi?cation
Risk assessmentRisk monitoringRisk management
Gather and analyze market demand and de?ne the objectives and scope of riskidenti?cation.
Establish a risk monitoring mechanism to identify and resolve potential problems ina timely manner.Pay close attention to the progress of project R&D, take timely and e?ective measuresto control the risks associated with new product R&D, and continuously improve thecompany's innovation capability.
Identi?ed risks are assessed to determine the likelihood of their occurrence and theimpact cycle.
Type of Risk/Opportunity
Description of Risk/Opportunity
Likelihood of
Occurrence
ImpactDuration
ExpectedFinancial Impact
Countermeasures
Opportunities
Market
risksRisks
Technologyleadership
Transformation
andupgrading
Medium
Term
Short,Medium
and Long Term
Short,Medium
andLong Term
Reduction in
costs
Medium
High
High
?. New products orservices may not bewidely accepted inthe market;?. The product sam-pling cycle is longand can't keep upwith the changes inthe market.
?. When developingand projecting newproducts, repeatedlydemonstrate themarket demand;?. Increase theresource investmentin design anddevelopment, andshorten the productR&D cycle as much aspossible.Optimize thestrategic layout,develop the VR/AR?eld, and cooperatewith internationallyrenowned opticalwaveguidemanufacturers.Strengthening theconstruction ofinformationtechnology anddigitalization tocontinuouslyimprove worke?ciency.
Decrease inrevenue
Increase inrevenue
With the rapiddevelopment ofemergingtechnologies such as?G, AI and IoT, theapplication areas ofoptical technologywill continue toexpand.Throughcontinuousscienti?c andtechnologicalinnovation, it canpromote thecompany to realizetransformation andupgrading.
There are many uncertainties in scienti?c and technological innovation, Crystal-Optech can identify, analyze and respond to therisks and opportunities arising from the innovation process in a multidimensional manner, and continuously improve the team'sability to cope with risks and enhance the company's independent innovation capability.
Strategy
PAGE59PAGE58
Crystal-Optech strictly abide by the Patent Law of the People's Republic ofChina, Trademark Law of the People's Republic of China, Copyright Law of thePeople's Republic of China and other relevant laws and regulations, theformulation of Intellectual Property Rights Protection Control Procedures andother systems, and the establishment of a specialized intellectual propertyrights management organization. The Company has passed the certi?cationof intellectual property management system and won the title of “NationalAdvantageous Intellectual Property Enterprise” and “Intellectual PropertyDemonstration Enterprise of Zhejiang Province”.
Management SystemProtection of Intellectual Property Rights
Intellectual Property Management
System Certi?cate
Documents
ControlDepartmentGeneralManager's
O?ceProjectManagementDepartmentHR CenterFinance
CenterTechnologyR&D Center
O?ce ofthe Boardof DirectorsBusiness
Groups
Organizational Structure of Intellectual Property Management
Manager'sRepresentative
Key Performance:
In 2024, the Company will invest RMB 407,794,770.43 in R&D, accounting for 6.50% ofoperating revenue.
As a leader in the ?eld of optical segments, Crystal-Optech attaches great importance to the development of technological innova-tion, through independent innovation and technological R&D to master the precision optical thin ?lm design, micro-nano opticaltechnology and other industry core technologies, covering the core industry chain. During the reporting period, the Company setcorresponding technological innovation targets to promote the development of the industry with continuous technologicalleadership.
Indicators and Goals
Cumulative number of authorized
invention patentsCumulative number of authorizedutility model patentsCumulative number of authorized
design patents
ItemItemItem
???????
By Type of Patent
Cumulative number of
software copyrights
Item???
Other Intellectual Property
Key IndicatorsUnit2024
Innovation Achievements
Cumulative number ofauthorized patents
Item???
GeneralManager
The Company establishes a platform for technological innovation and knowledge sharing, gathers diversi?ed innovation resources,and introduces external wisdom power through open cooperation, to build a favorable innovation ecosystem and promote the sus-tainable development of the Company. By the end of the reporting period, the company has built a national enterprise technologycenter, Zhejiang Provincial Key Enterprise Research Institute of Thin Film and Micro-Nano Optical Technology, Thin Film andMicro-Nano Zhejiang Engineering Research Center, Zhejiang Postdoctoral Workstation and other R&D platforms.
Construction of Innovation Platforms
The deep integration of education and industry is an important force in promoting social progress and scienti?c and technologicalinnovation. Crystal-Optech to build an innovation consortium, and College of Optical Science and Engineering of Zhejiang Universi-ty to carry out cooperation, deepen the cooperation in scienti?c research, personnel training, results transformation and otherareas of cooperation, and jointly explore the depth of the integration of industry, academia and research of a new model, in orderto promote China's optoelectronics industry, technological advances and industrial upgrading contribute to the strength. Duringthe reporting period, the Company and Changchun University of Science and Technology jointly trained post-doctoral researchersto further promote the deep integration of industry, academia and research.
Developing School-Enterprise Cooperation
Crystal-Optech deep plowing in the optical track, with core technologies such as thin ?lm optics, optical cold working, semiconduc-tor optics, and optical system design, covering three major industries of consumer electronics, automotive optoelectronics, andAR/VR, and build the second and third growth curves. Crystal-Optech is now a National Manufacturing Individual ChampionDemonstration Enterprise, Top ?? Enterprises in China's Electronic Material Industry, Xiongying Cultivation Enterprise of ZhejiangProvince, Innovative Leading Enterprise of Zhejiang Province, Invisible Champion of Zhejiang Province, National High-tech Enter-prise, National Advantageous Enterprise in Intellectual Property Management. By the end of the reporting period, the Companyparticipated in the formulation and revision of four national standards and two industry standards.During the reporting period, the Company was awarded the “???? Auto Intelligence Innovation Awards-Excellence in ApplicationAward” and “China VR/AR Top Enterprises”, which recognized the Company's outstanding achievements and technological innova-tions, and fully demonstrated the Company's strength and in?uence in the ?eld of VR/AR optical parts and solutions.
R&D Innovation Achievements
The Company continuously improves the intellectual property incentive mechanism, formulates the Patent and Soft Writings Man-agement Measures and other systems, and gives corresponding material rewards and spiritual rewards to employees who create,protect and utilize intellectual property rights. The Company organizes several trainings every year, encourages employees toactively apply for patents, sets up special bonuses, and takes patents as an important consideration factor for the promotion ofemployees' ranks, thus stimulating the enthusiasm and potential for innovation of employees within the enterprise.
Encouragement of R&D and InnovationR&D Innovation Initiatives and Results
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Strategy
Type of Risk/Opportunity
Description of Risk/Opportunity
Likelihood of Occurrence
ImpactDuration
ExpectedFinancialImpact
Countermeasures
Opportunities
SupplychaindisruptionRisks
Sustainabledevelopment
trend
Short Term
Short,MediumandLong Term
Medium
High
?. Purchase materials arriveuntimely or suddenly stopsupply, a?ecting theCompany's subsequentproduction program;?. The quantity and quality ofpurchase materials do notmeet the requirements.
?. Develop alternatesuppliers;?. IQC inspection ofincoming materials toreduce non-compliantmaterials into thefactory.
Continuously promotesupplier ESGmanagement andbuild a sustainableresponsibility chain.
Decrease insales revenue
Reduction incosts and
increase inmarket share
With the increasingawareness of environmentalprotection, sustainabledevelopment has become animportant consideration insupply chain management.By practicing responsiblepurchasing and creating agreen supply chain, theCompany is able to build agood brand image.
Crystal-Optech actively identi?es and evaluates risks and opportunities in the supply chain and takes measures to minimize theimpact, continuously enhancing the resilience of the supply chain and promoting the sustainable development of the supply chain.Crystal-Optech has formulated the Strategic Sourcing and Supplier Management Measures, Procurement Delivery and Ful?llment Man-agement Measures, and other systems to establish a full life cycle management approach for supplier sourcing, access, grading,performance, elimination, and so on. The Company's Strategic Sourcing and Supplier Management Department (hereinafterreferred to as the Supplier Management Department) is responsible for co-ordination and management, and the Division Purchas-ing is responsible for the management of suppliers under the Division's account set, and, in conjunction with the performancemanagement of the suppliers, assists the Supplier Management Department to do a good job in supplier grading, consolidation,elimination, development, and resource layout, etc. For supplier resources shared by multiple business division, the Supplier Man-agement Department coordinates supplier grading and elimination.
Governance
Crystal-Optech in accordance with the Patent Law of the People's Republic of China, Trademark Law of the People's Republic of Chinaand other laws and regulations require timely application for patents, e?ective protection of their own intellectual property rightsfrom infringement. When the Company discovers that others are infringing on its intellectual property, it will collect evidence andtake decisive measures in a timely manner to safeguard its legitimate rights and interests.The company integrates intellectual property into the whole process of product R&D, purchases patent commercial database,regularly understands the industry patent information, and does a good job of patent risk warning and product R&D avoidance.Before using the software and hardware provided by the customer involving intellectual property protection requirements, theCompany requires the customer to provide written authorization documents and use them only within the scope of the license toavoid disputes over property rights. In using intellectual property provided by customers, the Company protects it from beingobtained by unauthorized persons or disclosed to third parties. When signing contracts with suppliers, the purchasing departmentshould clarify the ownership of intellectual property arising from the supplier's operations related to the supply of goods to thecompany and sign con?dentiality agreements or con?dentiality clauses to avoid infringing on other people's trademarks, copy-rights, patents, business secrets or other intellectual property rights.Supply Chain Management
Crystal-Optech continues to optimize its supplier management system, integrates environmental, social and governance factorsinto supply chain management, and maintains long-term and stable cooperative relationships with suppliers while strictly con-trolling supply chain risks, thus building a fair, just and sustainable supply chain system.
Management Measures
Supplier development
Prepare a supplier development program based on the supplier status of the purchasedcategory, such as supply capability and stability, response time, service and manage-ment level, price and payment method, and the number of suppliers.Multi-channel development to establish a list of eligible access conditions and selectsuitable suppliers for sample inquiry.
Management System of Supply Chain
Supplier introduction
Supplier introduction is divided into three stages: temporary -- appraisal -- quali?ca-tion. Temporary suppliers can trade for ? month only, and appraisal suppliers can tradefor a ?-month appraisal period. Quali?ed suppliers are generally not subject to a dead-line requirement unless they are naturally or actively phased out.During the ?-month trading period, the temporary buyer may apply for a transfer ofassessment to a supplier if it meets the company's needs.During the ?-month assessment period, if the quality is stable, the service is timely, andthe cost is reasonable, the assessing buyer can apply for supplier review and apply forconversion to quali?ed supplier if it meets the requirements.
Supplier review
An audit team is formed by the purchasing, quality, and technical departments to con-duct on-site audits or document audits of new suppliers.Conduct annual audits of quali?ed suppliers to optimize supply chain management andimprove overall competitiveness.
Supplier hierarchy
Supplier performance
Supplier elimination
Evaluate suppliers in four dimensions: quality, delivery, cost, and technology.Upgrade, downgrade or eliminate suppliers based on the results of performance evalu-ation.Establishment of supplier elimination plan, elimination list.Suppliers who have been eliminated or naturally eliminated and who need to resumetrading can initiate a request, write down the reasons, and make it e?ective after theCompany's approval.
Suppliers are categorized into ?ve levels: strategic, preferred, alternative, restricted,and eliminated, based on their R&D and production capabilities, bidding and costreduction capabilities, willingness to cooperate, and cooperation.
TypeManagement Measures
PAGE63PAGE62
Type Management Measures
Crystal-Optech strengthens supply chain risk management, develops a set of perfect risk management process, to protect thesupply chain stable and healthy operation.
Impact, Risk, and Opportunity Management
Crystal-Optech incorporates ESG standards into its supply chain management, establishes a multi-dimensional supplier evaluationsystem, and promotes the sustainable development of the supply chain in three aspects: quality, environmental safety, and socialresponsibility. The Company requires suppliers to sign a Supplier Social Responsibility Commitment, which covers environmentalprotection, health and safety, business ethics, and labor human rights. For suppliers who violate the requirements, take the initia-tive to urge them to carry out recti?cation; for suppliers who fail to meet the standards within the recti?cation period, take thecorresponding elimination procedures. In addition, the company actively conducts supplier safety training to meet the require-ments of supplier ESG management.
Supplier ESG Management
Responsible Purchasing
Digital Purchasing
Crystal-Optech continues to promote big data management of raw materials, simplifying operational processes and improvingbusiness e?ciency through digital technology. The Company builds a supplier quality abnormality system, which automaticallysends an abnormality warning by message when the received material is non-conforming, which is conducive to the Company'stimely response to ensure that the supply chain system is safe and reliable.
Integrity PurchasingCrystal-Optech has always adhered to the principle of mutual bene?t, honesty and trustworthiness, the implementation of “sun-shine purchasing”, suppliers are required to sign a Commitment of Honesty and Integrity, to put an end to commercial bribery, mo-nopolization and other unfair competition, to protect the legitimate rights and interests of both parties, to create a level playing?eld, a sunny and healthy market environment.
Key IndicatorsUnit2024
Number of suppliers with QualityManagement System Certi?cationNumber of suppliers with EnvironmentalManagement System Certi?cationNumber of suppliers with Occupational Health andSafety Management System Certi?cationNumber of suppliers suspended for non-complianceNumber of potential suppliers rejected
for non-compliance
pcspcspcspcspcs
???????????
Supplier Status
Supplier Review
Total number of supplierspcs???
The Company sets reasonable supply chain management Indicatores to manage and optimize each link in the supply chain, so asto improve the Company's operational e?ciency and competitiveness. At the same time, the company treats SMEs upstream anddownstream of the supply chain equally, and there are no cases of overdue payments to SMEs.Indicators and Goals
Risk identi?cation
Risk assessmentRisk managementRisk monitoring
Collect relevant information about the supply chain, including but not limited tosupplier information, logistics and transportation information, raw material sourc-es, etc., and identify risks based on the collection of ethical information.
Develop countermeasures, and for high-risk suppliers, consider methods such asestablishing alternate suppliers and increasing inventory.Strengthen the monitoring of the supply chain, obtain timely information related tothe supply chain, and adjust and update the risk according to the actual situation.
A comprehensive assessment of risks in the supply chain, using both qualitative andquantitative methods.
Key Performance:
Key Performance:
During the reporting period, the signing rate of the Company's Supplier Social Responsibility Commitment was 100%.
During the reporting period, the signing rate of the Company's Commitment of Honesty and Integrity was 100%.Green Purchasing
Crystal-Optech is committed to building a green supply chain. At the source of the supply chain, priority is given to suppliers withenvironmental protection or social responsibility certi?cations, and in the purchasing process, priority is given to products andservices that have a low impact on the environment, have a high utilization rate of resources, and are in compliance with environ-mental protection standards, so as to further reduce the environmental impact of the supply chain and build a more sustainablebusiness model.
Quality
Social responsibilities
Environmental safety
ISO ???? Quality Management Systems (Consumer electronics product certi?cation)IATF ?????, Automotive Quality Management System Standard (In-vehicle productcerti?cation)QCDS Supplier Cyclical Evaluation SystemMaterial acceptance standardAbnormal feedback process and closed-loop tracking systemIntellectualization and systematization requirementsISO ????? Environmental Management SystemChemicals management (general chemicals & hazardous chemicals management)Fire and mergency managementHuman rights requirementsEnvironmental assessment requirementsCon?ict minerals managementInformation security
Multi-dimensional supplier evaluation system
2024UnitKey Indicators
PAGE65PAGE64
Crystal-Optech strictly abide by the Product Quality Law of the People's Republic of China and other laws and regulations, andformulate Quality, Environment/HSF, Occupational Health and Safety Integrated Management System Management Manual and othersystems to ensure that the quality of each link is e?ectively controlled. By the end of the reporting period, the Company had notexperienced any major quality and safety accidents or large-scale quality and safety complaints.The Company continues to improve the quality system construction, is committed to providing customers with high-quality prod-ucts and services, and has passed ISO????, IATF????? quality management system certi?cation. The Company conducts qualityinternal audits every year to identify and solve the de?ciencies and potential problems in the quality management system in atimely manner, so as to continuously improve the e?ectiveness and e?ciency of the quality management system.
Quality Assurance System
Crystal-Optech builds a scienti?c and e?ective quality management structure, and the quality management representative isresponsible for coordinating and supervising all quality-related activities. Under the leadership of the quality management repre-sentative, the Company has set up ?ve modules, namely, system, incoming material management, test center, quality assurance,and quality inspection, in order to realize the whole life cycle management of product quality.
Crystal-Optech ISO???? QualityManagement System Certi?cation
Crystal-Optech Jiangxi ISO???? Quality
Management System Certi?cation
New T.Best ISO???? QualityManagement System Certi?cation
Crystal-Optech Vietnam ISO???? QualityManagement System Certi?cation
Crystal-Optech IATF????? QualityManagement System Certi?cation
Quality Management Organizational Structure
System
IQC
IQC
IPQCPQECQE
OQCSQE
SQE
Incoming materialmanagement
Test center
Qualityassurance
Qualityinspection
Quality management
representative
Management ofHazardous Substances
Hazardoussubstance testing
Reliability testing
MeasurementmanagementSystem auditDocument control
Governance
Product and Service Safety and QualityQuality is the lifeline of Crystal-Optech, craftsmanship is the vitality of quality construction, Crystal-Optech adhere to the “custom-er satisfaction is our eternal pursuit” of quality management policy, customer demand-oriented, continuous improvement of theproduct life cycle management process, and constantly promote the improvement and optimization of the quality of products andservices to enhance customer satisfaction.
Crystal-Optech adheres to responsible mineral procurement, strictly abides by the requirements of the Responsible Minerals Initia-tive (RMI), the Due Diligence Guidance for Responsible Supply Chains of Minerals from Con?ict-A?ected and High-Risk Areas of theOrganization for Economic Cooperation and Development (OECD), and formulates the Con?ict Minerals Control Policy to strengthenthe procurement management of metallic materials such as tantalum (Ta), tin (Sn), gold (Au), tungsten (W), cobalt (Co), and mica(Mica), enhance the transparency of the supply chain, and ensure the traceability of minerals used in the supply chain.During the reporting period, the Company carried out mineral traceability for junction boxes and solder strips involving the use ofcon?ict minerals (tin), and issued con?ict minerals questionnaires based on the principles of the Con?ict Minerals Reporting Tem-plate (CMRT) issued by the Responsible Minerals Initiative (RMI) to all suppliers of metal raw materials for photovoltaic solderingtapes and wires, with the traceability ratio reaching ???%, and there was no procurement of con?ict minerals.
Con?ict Minerals Management
Policy requirements
Due diligence
Suppliers sign a Supplier Social Responsibility Commitmentto ensure that no metalsused in raw materials supplied to the company are from con?ict areas.Suppliers shall impose the same con?ict minerals management requirements ontheir upstream suppliers.Due diligence was conducted on the identi?ed suppliers using the Con?ict MineralsReporting Template (CMRT) and the Extended Minerals Reporting Template (EMRT)provided by RMI.Compliance with CMRT, EMRT, and other questionnaires is con?rmed, and if thesupplier response information is incomplete or incorrect, it is requested to bere?lled or supporting evidence is provided.
Business Division
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System
Test centerQuality assuranceQuality inspection
Incoming materialmanagement
Ensure that the Company's quality management system complies with standardsand is continuously improved.Control the quality of raw materials and components to ensure that they meetproduction requirements.Perform product testing to ensure that products meet quality standards beforeleaving the factory.Ensure quality throughout the entire production process, from design to manufac-turing to after-sales service.Quality inspections are carried out during the production process and before theproducts leave the factory.
ModulesMain Responsibilities
Risk evaluation
Risk identi?cation
Risk assessment
Risk response
Using a variety of material information and experience to identify risks in processes of tech-nique, equipment, systems and operations.
Regularly organize and implement reviews of risks and opportunities to validate their e?ec-tiveness. The review of risks and opportunities is completed with a risk assessment report,opportunities for continuous improvement, residual risk analysis and improvement mea-sures.
Measures are taken against risks based on the results of the assessment, and when potentialrisks can be e?ectively avoided by taking avoidance measures, a risk avoidance program isdeveloped, and risk avoidance measures are identi?ed and implemented until the risk is par-tially or completely eliminated. When there are no feasible options for risk avoidance, e?ec-tive risk reduction measures are taken to minimize the impact of potential risks.Risks are analyzed in terms of their likelihood of occurrence and the timeframe of theirimpact, and the impact of the risk on products, corporate property, corporate image, corpo-rate production and operations, and customer satisfaction is assessed.
Crystal-Optech identi?es and evaluates risks and opportunities in the production process, formulates the Risk and OpportunityCountermeasures Management Procedure establishes comprehensive risk and opportunity management measures, and follows upon the implementation in a timely manner to ensure the e?ectiveness of the measures, thus reducing or eliminating the impactscaused by the risks.
Strategy
Type of Risk/Opportunity
Description of Risk/Opportunity
Likelihood of Occurrence
Impact Duration
ExpectedFinancialImpact
Countermeasures
Opportunities
Qualityissues orcustomercomplaintsRisks
Intelligentand digitaltransformation
Short andMedium Term
Short,Mediumand
Long Term
Medium
High
?. Defective productsare not labeled andcontrolled in time and?ow into the market;?. Inspection personnelwrong inspection,omission or not inaccordance with therequirements, resultingin inaccurate testresults.
?. Strengthen the qualitycontrol and develop areasonable samplingplan;?. Strengthen the trainingand learning of relevantmanagement personnel;?. Strengthen thecommunication withcustomers and handlecustomer feedback in atimely manner.
Increase the construction of intelligentsystems to promote thecompany's digitaltransformation.
Increase in
costs
Increase inmarket share
The Company can usedigital systems tocollect and analyzedata generated by theproduction process,thereby improving theprecision ande?ciency of productquality control.
Crystal-Optech as established a quality management system throughout the entire product life cycle to ensure that every aspectfrom product design, production to service achieves superior quality. The Company strictly implements the quality control stan-dards, through advanced technology and sophisticated testing equipment, to ensure that from the beginning of the incomingmaterial inspection, to the production process control, ?nished product factory testing are in line with the quality requirements. Atthe same time, the Company has also formulated systems such as Management Measures for Review of Nonconforming Products andNonconformity/Nonconformity Control Procedures, organized a professional team to review and analyze the situation of nonconfor-mity and take e?ective measures for correction and improvement. For products that fail inspection, the Company takes measuressuch as rework, special procurement, scrapping, return, downgrading, full inspection and sub-picking, etc. to prevent them frombeing used and delivered incorrectly, so as to continuously improve the non-conforming items in order to ensure that the integrat-ed management system operates continuously and e?ectively.
Key Performance:
Full Life Cycle ManagementMeasures for Product Quality Management
IndicatorObjective ContentAchievement
Product yield??%
Achieved, with an actualproduct yield of ??.??%.
During the reporting period, the Company carried out 1 quality risk assessment.
Crystal-Optech continuously improves the quality risk management process and strengthens the quality risk management throughthe steps of risk identi?cation, risk assessment, risk response and risk evaluation.
Impact, Risk, and Opportunity Management
Crystal-Optech with high standards and strict requirements to control product quality, and develop a scienti?c and e?ective quali-ty management objectives, by the quality department to monitor the achievement of the objectives, such as substandard itemswill be proposed to improve the proposal to achieve product quality closed-loop management.Indicators and Goals
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Crystal-Optech built a digital quality management system suitable for its own development based on its own actual situation, andachieved total quality management by relying on digital, intelligent system. Through real-time collection and analysis of varioustypes of data in the production process, the Company is able to quickly identify quality problems and accurately locate the rootcauses of the problems, thus improving the e?ciency and accuracy of quality management and promoting the continuous optimi-zation and upgrading of products and services.
Digital Enablement
ERP system
By relying on this system, achieve the purchase, warehousing, inspectionand management of raw materials and ensure the supply of raw materialsand quality control.MES system
Through real-time data collection, monitoring and analysis, the MESsystem can improve product quality and traceability, providing strongsupport for enterprises to realize e?cient management.
Digital cloud platform
Real-time monitor quality data, provide re?ned control of di?erent links,and timely discover and resolve quality problems in the production pro-cess, thus e?ectively improving product quality.
Product development
Feed inspectionProduction quality inspectionOutbound inspectionContinuous optimization
Gather market needs and develop product design speci?cations.Select conforming raw material suppliers and carry out raw material inspec-tion to ensure the quality of raw materials.Strictly follow the requirements of the production process to ensure the quali-ty of the production process.Sampling and testing of ?nished products to ensure that product qualitymeets standards.Gather customer feedback and address quality issues in a timely manner.Continuously optimize product quality management processes based onmarket feedback.
Quality Management Process
Product design
Material purchasing
Collect the information on hazardous substances and give full consideration todomestic and overseas laws and regulations as well as customer standards for haz-ardous substance management.Require suppliers to provide valid test reports on hazardous substances (ICP reports) andmaterial safety data sheets (MSDS).Sign CG-B?? “Non-Use Guarantee of Prohibited Substances” with suppliers.High-risk materials or materials provided by high-risk suppliers are sampled and con?rmedas appropriate.
Management Process of Hazardous Substances
Crystal-Optech has formulated Management Regulations on HazardousSubstances, Hazardous Substance Control Standards, Hazardous Sub-stance Identi?cation and Evaluation Control Procedures, Hazardous Sub-stance Detection Standards and other systems to standardize the man-agement of hazardous substances and to ensure that the procurementand implementation of departmental materials, the Company's produc-tion process control and the hazardous substances contained in the?nal product comply with the EU REACH regulation, the EU ROHS Direc-tive/Packaging and Packaging Waste Directive, Norway POHS ban,SS-????? Management Regulations of Hazardous Substances in Compo-nents and Materials and other domestic and overseas laws and regula-tions and customer requirements. As of the end of the reporting period,the Company has passed the Hazardous Substance Process Manage-ment System (IECQ QC??????) certi?cation.Crystal-Optech strictly controls hazardous substances in the process ofproduct design, procurement, manufacturing and shipment. The rele-vant responsible departments test raw and auxiliary materials, packag-ing materials and ?nished products in accordance with the HazardousSubstance Detection Standards. At the same time, the Company regularlyidenti?es hazardous substances, evaluates existing or potential sourcesof signi?cant hazardous substance pollution, and conducts controlplanning.
Hazardous Substance Management
IECQ QC?????? Certi?cation Certi?cate
Do a good job of sampling products from the factory and send them to the measurementresource management department for testing.Trace hazardous substances for products leaving the factory.When information on hazardous substances contained in products is changed, the customershould be noti?ed in advance.
When receiving raw and auxiliary materials, each product line's material receiver needs tocon?rm whether the outer packaging is labeled with environmental protection markings,such as ROHS and GP markings.Each product line follows the cadmium-free factory requirements de?ned in the Sony GroupEnvironmental Quality Management Procedures in terms of use restrictions and use siterestrictions, not to use raw and auxiliary materials that exceed the hazardous substance con-tent requirements of the Hazardous Substance Control Standards, and not to intentionallyadd hazardous substances that are prohibited for use.For products with contents exceeding those speci?ed in the Hazardous Substance ControlStandards, it is necessary to arrange for dedicated production lines to prevent misuse,mixing and contamination. If products with di?erent control requirements are produced onthe same line, a line needs to be changed for cleaning.When introducing new machines, tooling and jigs/activating idle machines (machines thathave been out of service for more than ? months are considered idle) and tooling and jigs tosupport production, HSF compliance assessment of the machines, tooling and jigs should beconducted. An HSF compliance assessment is also required after equipment repair.Process XRF testing is required when there are risks associated with the product manufactur-ing process.
Management Process of Hazardous Substances
Inspection of incoming
materials
Finished product
guarantee
Process management
The incoming material inspector does a good job of sampling raw and auxiliary materialsand sends them to the measurement resource management department for testing.
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De?nition and
handling ofresponsibilitiesfor complaints
Acceptanceand transmissionof complaints
Relevant departments patiently receive complaints, con?rm the real cause of complaints, activelyfollow up and feed back, and enthusiastically serve customers.If the de?ned result is a product quality problem, the relevant department will ship the problematicproduct back to the Company according to the actual situation of the customer, meanwhile, negotiatewith the customer on the follow-up matters.When the customer complaint receiver receives a customer complaint, the receiver needs to ask forthe product model number, batch number, tracking number and a detailed description of the problemin detail and make a record.Transfer the complaint information to the head of the quality department, manufacturing manager,and responsible on-site quality engineer through the enterprise email.
Complaint Handling Process
Crystal-Optech has formulated Customer Complaint Handling Management Measures to clarify the responsibilities and speci?c oper-ation methods for receiving, handling, transferring and implementing measures for customer complaints. Through patient accep-tance, serious handling and active feedback of customer complaints, the Company collects relevant information and data on themarket, customers and products, and formulates quality improvement measures, to achieve the purpose of continuous improve-ment of customer management and customer services.
Customer Complaint Response
Pre-salesservices
Services during
sale
After-sales
services
Carry out relevant publicity to customers within the market target range, provide technical advice, andintroduce the Company's products and general information.Respond promptly to customer's feedback (e.g., customer complaints), incoming calls and inquiries(e.g., inquiries about the processing of contracts or orders and their modi?cations, etc.).Receive and arrange for customer visits.Timely track the order situation. When occurring such as delivery date, technical quality requirements,HSF requirements, transportation or other relevant contractual matters show abnormalities, the busi-ness sta? should timely feed back information to the customer, and e?ectively communicate anddispose of them.After the product is shipped, the marketing department reports the information about the deliveryprocess to the customer in a timely manner.Follow up the delivered products, maintain communication with customers, and deal with customercomplaints in a timely manner.If the customer needs to return the non-conforming product he/she selected after receiving it forinspection or using it, the business sta? of marketing department need to ?rst understand the reasonsfor product failure from the customer, and feed back the return information to the quality departmentin time after getting the customer's non-conforming noti?cation. After the quality department con-?rms and agrees to the return of product, the product can be returned.
Customer Service Process
Key Performance:
In order to further improve the quality of the Company's products, enhance the sta?'s quality awareness, improve quality skills, andcreate a quality culture atmosphere of full participation and the pursuit of excellence, Crystal-Optech carried out a quality training,explaining the quality-related knowledge to the sta?, and made the sta? understand the various types of quality hazards and risksthat are prone to occur in the production process through the case narratives, so as to establish the concept of work: "quality mat-ters", constantly improve the Company's quality management level and core competitiveness, and promote the Company's prod-uct quality to a new level.
Promoting the Spirit of Craftsmanship
Crystal-Optech formulates systems such as Customer-Related Process Control Procedure, strengthens communication with custom-ers, maintains good cooperative relationships with customers, and responds to customer needs in a timely manner. The Compa-ny's marketing department is responsible for communicating with customers, identifying customer requirements, and organizingthe review of product-related requirements; responsible for pre-sale, sale and after-sale services of products, collecting and collat-ing customer-related information, and providing timely feedback to the Company's relevant functional departments. The relevantfunctional departments are responsible for the processing and feedback of the information within the scope of their duties.
Customer Service ProcessCustomer Service Management
Product Quality Training
During the reporting period, the Company carried out quality training 15 times, with a total training durationof 26 hours; trained 656 man-times in total.
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Tracking andveri?cation ofcomplaints
Complaint
handling
Organize customer complaint response according to the ?D (? Disciplines) steps.The ?D team leader organizes relevant personnel to develop short-term measures (D?) and implementthem within one working day, and sends the information email to the customer complaint receiver,who will then pass it on to the customer as needed.Complete (return) testing, cause analysis, and implementation of improvement measures within ?working days (or ? working days after receiving the sample if the customer needs to return defectiveitems). After the implementation of countermeasures, the results should be tracked and veri?ed. If theveri?cation does not meet the requirements, it should be ordered to rectify again until it meets therequirements.Complete ?D within ? working days (? working days after receiving the sample) and reply to the cus-tomer. The medium and long-term measures (such as document standardization) shall be implement-ed within ? month at the latest; If the customer has special requirements on the time to reply to thecomplaint, the reply shall be completed within the time required by the customer.If the quality problem cannot be solved in a short time, an improvement plan (determine the improve-ment measures, responsible person and completion date) shall be made and submitted to the custom-er, and the implementation of the recti?cation measures shall be updated regularly.Track the implemented improvement measures for three consecutive months or batches to ensuretheir continued e?ectiveness.For the customer complaints of designated major customers, the improvement measures should bemaintained in the CAPA list, and they should be reviewed and con?rmed regularly. The review frequen-cy is once every three months, and it can only be closed after three consecutive con?rmations. Theresponsible department shall give a reply within ? days.
关键绩效：
During the reporting period, the Company distributed 34 customer satisfaction questionnaires, and the customersatisfaction rate was 89.50%.
Market information is related to the Company's security and interests. Crystal-Optech has formulated the Management System ofMarket Information Con?dentiality, which strictly keeps customer information con?dential and monitors information securitythrough IT technology, thus reducing the risk of information leakage and providing customers with a safe and reliable service envi-ronment. All business personnel (account managers, salesmen, business assistants) and those related to market information areforbidden to talk about information related to customer work to irrelevant personnel at any time and any place. If customer infor-mation needs to be exchanged, it will be transmitted and exchanged by customer code. All employees must strictly abide by theobligation of con?dentiality and shall not disclose information such as customer ?les. During the reporting period, there was nocustomer privacy disclosure incident in the Company.
Customer Privacy Protection
Crystal-Optech strictly adheres to national laws and regulations such as the Data Security Law of the People's Republic of China andthe Cybersecurity Law of the People's Republic of China, formulates the Information Security Management Manual, and establishes acomprehensive information security management system to ensure the security of the Company's information infrastructure andinformation application systems. At the same time, the Company has established a clear information security reward and punish-ment mechanism, punishing employees who violate information security policies and procedures, and rewarding employees whoe?ectively avoid information security incidents, thereby e?ectively preventing the occurrence of information security incidents. Asof the end of the reporting period, the Company has not experienced any data security incidents.
Information Security Management System
Crystal-Optech provides solid support for the Company's information security management from multiple aspects, including infor-mation system management, physical environment management, and information security training, in accordance with therequirements of program management documents such as the Computer Room Security Management System and VulnerabilityScanning Measures.
Normalized Security Governance Measures
Ensuring information security is an important part of safeguarding customers' rights and interests and enhancing the Company'scompetitiveness. Crystal-Optech continuously strengthens the level of information security construction and management, andcompacts the responsibility of network and data security layer by layer, thus promoting the safe, e?cient and steady developmentof the Company's various businesses.
Data Security Guarantee
Key Performance:
Key Performance:
During the reporting period, the Company received 334 customer complaints with a 100% resolution rate.
Customer satisfaction evaluation of Crystal-Optech is conducted once a year, which is coordinated by the marketing department.After the customer satisfaction survey, the marketing department forms a customer satisfaction evaluation form and sends it tothe business section chiefs, the heads of the marketing department and the leaders in charge of the marketing department. Theheads of the marketing department analyze and improve the suggestions or opinions put forward by customers in the customersatisfaction questionnaire and the problems existing in the customer satisfaction evaluation form, organize relevant departmentsto participate when necessary, and form an improvement report, complete the service work of relevant customers in time, andcontinuously improve customer satisfaction.
Customer Satisfaction
Data securitymanagement
System security
management
Backup the data, the person in charge of the data source needs to check daily whether the data theyare responsible for is backed up, and promptly organize the backup ?les, and record any abnormalbackup events.Develop disaster recovery plans to ensure that business systems and data can resume normal opera-tion in the event of a major security incident.Scan the vulnerabilities of the Company's main system hosts and repair them in time.Carry out computer virus inspection and regularly check the operation of computer equipment.Encrypt con?dential documents to ensure that the internal information of the Company is not leaked.Carry out VPN multifactor authentication to ensure data security.An application form must be ?lled in when the OA account (external access), enterprise email accountand other communication software and intranet (referring to the access of foreign computers to theCompany LAN) are opened.
Main MeasuresType
Complaint Handling Process
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Information security training
Regularly arrange computer network security training and strengthen the concept of computer net-work security.Regularly arrange network administrators to participate in safety training on computer networks toimprove their network management ability.
Main MeasuresType
Key Performance:
During the reporting period, the Company conducted 25 information security trainings with 2,000participants.
Environmentalmanagement ofcomputer room
Regularly check power supply, electrical equipment, ?re control facilities, etc., and solve problems intime when found.Regularly check and sort out the physical connection lines of hardware, and regularly check the opera-tion status of hardware (such as equipment indicator lights and meters).
Crystal-Optech has formulated the Emergency Management Procedures for Information Systems and the Emergency Plans for Net-work and Information Security to form a scienti?c, e?ective and quick-response emergency working mechanism to ensure thesafety of important computer information systems and prevent and reduce network and information security emergencies andtheir damage to the greatest extent. According to the nature of the incident, serious procedures, controllability, scope of in?uenceand other factors, the Company divides the Company's information security incidents into two levels: company level and depart-ment level, and formulates di?erent emergency plans to ensure that network information failures can be found, reported and han-dled early.The IT management department of the Company decides and deploys emergency management. When network and informationsecurity emergencies occur, the Company responds quickly, takes e?ective measures to curb the spread of the events, and sum-marizes and analyzes the events afterward to learn lessons, so as to improve the future response ability and minimize the impact ofdata security incidents.
Emergency Incident Management
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CRYSTALOPTECH
People-oriented,Building a HarmoniousWorkplace
Employees are the most valuable wealth of enterprises and an important support for business development. Crystal-Optechadheres to the core values of "people-oriented", always pays attention to and safeguards the legitimate rights and interests ofemployees, accompanies employees to grow safely, builds a diversi?ed and inclusive working environment for employees, con-tinuously optimizes the talent development system, and strives to broaden career development channels, so as to realize thecommon progress and development of individuals and enterprises.
Our Philosophy
Our Actions
Ensure occupational health and safety, protect the legitimate rights and interests of employees, pay attention to employeetraining and development, and carry out democratic management.Responsive SDGs
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Employee Training and DevelopmentOccupational Health and SafetyProtection of the Legitimate Rights and Interests of Employees
Occupational Health and Safety
Governance
Safety and Health Management System
Crystal-Optech adheres to the safety production policy of "safety ?rst, prevention ?rst, comprehensive treatment", establishes thesafety management concept of "hidden danger is accident", always puts occupational health and safety in an important position,conscientiously implements the laws and regulations such as the Law of the People's Republic of China on Work Safety and the Lawof the People's Republic of China on Prevention and Control of Occupational Disease, adheres to the occupational health and safetypolicy of "building a harmonious living and working environment", and constantly educates employees to strengthen safetyawareness to protect their safety and health.
Crystal-Optech's Occupational Health and Safety
Management Systems Certi?cate
Crystal-Optech's Second-class EnterpriseCerti?cate of Work Safety StandardizationIn order to strengthen the work of safety in production, the Company has a safety management organizational structure with clearpowers and responsibilities, comprehensively controls safety a?airs from the organizational level, supervises the implementationof safety work and the completion of safety objectives, and resolutely holds the bottom line of safety in production. In addition, inorder to implement the main body responsible for safety production of each unit, the Company signed a responsibility letter forsafety production target assessment with employees and the Divisions. During the reporting period, the Company signed a total of?,??? responsibility letters for safety production target assessment.
Principal person in charge
of the Company
Be responsible for organizing the formulation and implementation of overall andannual safety production targets, and assessing the results of safety productiontargets.
OrganizationResponsibilities
Functional Centers and
Business Groups
Base Operation Center -
EHS Department
Responsible for formulating the annual production safety objectives, indicators,implementation plans and assessment methods, and conducting inspection,testing and assessment.Be responsible for implementing the implementation plan of safety productiontargets and indicators of the unit; to be responsible for the publicity and train-ing of the safety production objectives, indicators, implementation plans andassessment methods of the unit; be responsible for the decomposition andassessment of the safety production objectives and indicators of the unit.
The Company evaluates and identi?es possible risks and opportunities in the production process and environment, and providescorresponding countermeasures to reduce potential risks and improve management e?ciency.
The Company has formulated such systems and procedures as Hazard Identi?cation and Risk Assessment Control Procedure, Emer-gency Preparedness and Response Procedure and Emergency Preparedness and Response Management Measures, and formed a com-plete management process, which can e?ectively identify, evaluate and manage safety risks at di?erent levels.
Type of Risk/Opportunity
Description of Risk/Opportunity
Likelihood ofOccurrence
Financial
ImpactImpactDuration
Countermeasures
Oppor tunities
OperatingRisk
ReputationRisk
Risk
ManagementE?ciency
Increase inoperationalcosts/?nes.
Decrease inoperational
income.
Reduction in
expenseexpenditure.MediumandLong Term
Medium
Low
High
Occupational health orsafety accidents maylead to the decline ofthe Company'soperating e?ciency,and in serious casesmay also lead to theinterruption of theCompany's business.
Occupational healthor production safetyaccidents may lead toa decline in customertrust and a?ectmarket share.
Establish standardprocedures for hiddendanger investigation,prevention andrecti?cation, andtimely control relatedrisks.
Formulate safetyproduction plans anddo a good job inemergency handlingof safety productionaccidents; Timely andtransparentdisclosure of accidenthandling information.Optimize internalprocesses, strengthenrisk assessment andhidden dangerinvestigation, andimprove responsespeed; Invest inresearch anddevelopment orintroduce advancedsafety managementsystems andtechnologies toimprove the e?ciencyof occupationalhealth and safetymanagement.
Short Term
Long Term
Optimizing the?nancial budget andmanagement processof occupationalhealth and safety willimprove the overalloperating e?ciency ofthe Company andreduce the time andcost of accidenthandling.
Strategy
Impact, Risk, and Opportunity Management
The Company has formulated a series of health and safety production system documents, such as Safety Production ManagementSystem, Safety Production Responsibility System and Safety Production Reward and Punishment System, to strengthen the manage-ment and prevention of possible dangerous factors in the production process and promote the construction of safety system.During the reporting period, the Company passed the ISO ????? occupational health and safety management system certi?cationand obtained the second-class enterprise certi?cate of work safety standardization. Crystal-Optech Jiangxi, New T.Best, Crys-tal-Optech Vietnam, Crystal-Schott and Yeshili all passed the occupational health and safety management system certi?cation.
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The Company formulates the Equipment Management Regulations, which manages the whole life cycle of equipment operation, andstipulates the responsibilities of equipment management and the management in the early, middle and late stages of equipmentuse. In addition, the Company regularly carries out the closed-loop work of equipment safety hazard identi?cation and recti?cationsupervision.
On-site Inspection Photo
The Company sets the occupational health and safety target for ????.
Result-Oriented IndicatorsGoalsAchievementFire IncidentsNew Occupational Diseases in ????
Incidence Rate of Minor Injuries
Serious Injury and Death Accidents in Production Safety
None in ????None in ????None in ????The incidence in ???? is ≤?‰
AchievedAchievedAchievedAchieved
Risk Grading and Control
Identify hazard sources by division, business and category, and provide control mea-sures; update the hazard sources every year and count the number of newly identi?ed,reduced and eliminated hazards.
Emergency Plan
Hazard Identi?cation
and Management
Formulate the Safety Inspection and Hidden Danger Investigation and Recti?cationSystem, conduct hidden danger investigation every month, and implement closed-loopmanagement for hidden danger investigation and management; disclose safety hazardinvestigation data, company safety hazard inspection quantity trend chart, hiddendanger type distribution chart, hidden danger recti?cation tracking table, etc., and con-duct hidden danger type analysis. During the reporting period, the Company organized??? hidden dangers investigations and found ??? hidden dangers, all of which havebeen recti?ed, with a recti?cation rate of ???%.Formulate the Emergency Plan for Production Safety Incidents, including special emergen-cy plans and on-site disposal plans, strengthen the construction of emergency teamsand earnestly carry out emergency drills to e?ectively protect the lives and property ofemployees. During the reporting period, ? safety emergency drills were conducted.
Management ProcessManagement Measures
Comprehensive Emergency Drill for Safety Production
Comprehensive Emergency Drill for Safety ProductionCase
On May ??, ????, the Company held the "Comprehensive Emergency Drill for Safety Production". According to the Com-pany's emergency plan and the actual situation of the Company's safety work, it was determined that the main task ofthis ?re drill was to conduct emergency drills for ?re accidents. The whole drill was divided into three parts: scene simu-lated ?re evacuation, outdoor ?re hydrant ?re extinguishing, and personnel rescue drill, with a total of ?,??? participants.
The Company formulates the Contractor's Safety Management Regulations,signs the Contractor's EHS Management Agreement withthe contractor, reviews the contractor's quali?cation in advance, requires the contractor to provide the corresponding quali?ca-tion certi?cate, and signs the Contractor's Safety Management Instructions for Entering the Park, including the safety and environ-mental protection instructions for on-site operation and how to carry out emergency treatment. When handling the contractor'sconstruction certi?cate, the security department needs to review the Contractor's EHS Management Agreement and the Contractor'sSafety Education Instructions for Entering the Park, and can handle the construction certi?cate only after it is con?rmed to becorrect. During the contractor's work, the Company assigns the project leader to supervise the work, and requires the contractor to?ll in the "Contractor's Daily Inspection Record Form", and urge the recti?cation in time when problems are found.
Safety Management of Interested Parties
Indicators and Goals
Safety and Health Management MeasuresProduction Equipment Management
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Key Performance:
Key Performance:
During the reporting period, the detection rate of occupational hazard factors was 100%.
Occupational Disease Hazard Factor Detection
Occupational Health Protection
The Company formulates the Occupational Health Comprehensive Management System, which provides for the monitoring and eval-uation management of occupational hazards. The Company shall entrust an occupational health technical service institution withcorresponding quali?cations to detect occupational hazards at least once a year and evaluate the occupational hazards at leastonce every three years to ensure that the intensity or concentration of occupational hazards in the workplace meets the nationaloccupational health standards.
On-site Protective Clothing PhotoOn-site Warning Sign Picture
During the reporting period, the physical examination coverage rate of employees was 100%, and there were 0new occupational diseases.
Occupational Disease Protection
The Company has formulated such systems as Management Measures for Labor Protection Articles, Warning and Informing System forSafety and Occupational Health, and Management Measures for Occupational Health Examination. In terms of occupational healthexamination, EHS Department, the Base Operation Center, identi?es the occupational health hazard posts of the Company everyyear and issues the Occupational Hazard Assessment Form, which lists the occupational hazard factors of the posts, their impact onhuman body, possible occupational diseases, etc., and evaluates whether it is necessary to have a medical examination. The scopeof physical examination includes pre-employment, on-the-job and emergency physical examination to protect the health andrelated rights and interests of all employees.
The Company attaches great importance to enhancing employees' safety awareness. To this end, the Company regularly organizesoccupational health and safety training for all employees, covering safety operation procedures, use of personal protective equip-ment, emergency response and other aspects. In addition, the Company will also carry out special safety training for contractors toensure that they strictly abide by safety regulations during project implementation, jointly safeguard the Company's safe produc-tion order, and work together to build a harmonious working environment with zero accidents and zero injuries.
Enhancement of Safety Awareness
In order to strengthen the Company's ?re safety management, the Company formulated the Regulations on Fire Safety Management,entrusted a third-party organization with professional quali?cations to conduct comprehensive ?re facilities inspection on a regu-lar basis, and promptly fed back the recti?cation report after the inspection was completed, so as to quickly implement variousimprovement measures. In addition, the Company will regularly maintain the ?re-?ghting facilities to ensure the e?ectiveness andsafety of the ?re-?ghting facilities. In the safety management of hazardous chemicals, the Company strictly implements the storageand use speci?cations of chemicals, pays attention to taking anti-leakage measures, and comprehensively protects the safety ofemployees' lives and property and the harmony of the environment.
Fire Safety Management
Protective Measures for Chemical LeakageProtection Point and Facility
Key Performance:
Emergency Drill for Chemical Leakage of Boston DivisionAward-winning Answering Activity
Series of Activities of the Safe Production MonthCase
June ???? is the ??rd national "Safe Production Month". In order to implement the theme spirit of "Everyone pays atten-tion to safety, everyone knows how to respond to emergencies-unblocking the life channel", the Company has launched aseries of activities of Safe Production Month, including special training on Safety Subject Responsibility Knowledge, com-prehensive emergency drills for safe production, special emergency drills, prize-winning answering activities, specialsafety inspections and many other activities. This activity has e?ectively improved the safety production skills and aware-ness of all employees and promoted the safe development of enterprises.
In 2024, the Company invested a total of RMB 597,000 in safety education and training;
210 safety education and training sessions; participated in safety education and training for 35,015 people;
the total duration of safety education and training was 525.5 hours;safety education and training coverage rate was 100%;the coverage of safety risk protection training was 100%.
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Key Performance:
Key Performance:
Key Performance:
In order to safeguard the legitimate rights and interests of female employees, protect their physical and mental health and thehealthy growth of their children, the Company has formulated the Management Procedure for Labor Protection of Female Workers,which stipulates that the principle of equality between men and women should be followed in terms of promotion, treatment andwelfare, and protective measures should be taken for female employees during menstruation, pregnancy, childbirth and lactation.At the same time, the Company has a nursing room, which is cleaned regularly by a special person.
Women's Rights and Interests Protection
During the reporting period, the proportion of female managers in the Company was 27%;the number of employees enjoying maternity leave was 29; enjoy the maternity leave return rate of 100%;the number of employees enjoying parental leave was 54; the return rate of employees who enjoy parental leavewas 100%.
Mental Health of Employees
The Company ?rmly believes that employees' mental health is an important cornerstone for the stable development of enterpris-es. Therefore, the Company has formulated the Employee's Mental Health Protection Mechanism, and through a series of measuresand activities, it ensures that employees can maintain a good mental state and work-life balance while working e?ciently. TheCompany has set up a mental health leading group and a mental health executive group to regularly carry out mental health train-ing and team building activities for employees of the Company, and incorporate employees' mental health into the monthlyassessment system, and constantly optimize the mental health guarantee mechanism according to the assessment results tocreate a healthy, harmonious and positive working environment for employees.
During the reporting period, the employee turnover rate of the Company's functional platforms was 19.06%.
Talent Retention
Equity incentive is an indispensable tool to cultivate and bring up a professional, market-oriented and high-quality workforce. TheCompany has actively implemented the employee stock ownership plan, using a total of ??,???,??? repurchased shares for theimplementation of the Company's Phase IV to Phase VIII employee stock ownership plans during the period from ???? to ????. Atthe same time, it set the unlocking conditions related to the performance appraisal results at the individual level, actively reservedtalent resources, and continuously stimulated employees' work enthusiasm and enthusiasm.
The Company strictly abides by the Labor Law of People's Republic of China,the Labor Contract Law of People's Republic of Chinaand other laws and regulations, and formulates and improves the Employee Manual, Work Procedures for Prohibiting Discrimination,Harassment or Abuse, Non-compulsory Work Procedures, Control Procedures for Child Labor and Juvenile Workers, etc., to safeguardand respect the legitimate rights and interests of employees.The Company insists on equal pay for equal work, prohibits all forms of disciplinary measures such as harassment, abuse, sexualharassment or corporal punishment in the Company, and stipulates that it is not allowed to discriminate against any worker inrecruitment and other employment activities based on age, disability, nationality, gender, marital status, political a?liation, race,religion, sexual orientation, gender identity, membership of labor unions or any other status protected by applicable national orlocal laws. At the same time, the Company refuses any form of forced labor and ensures that all employees within the Company arevoluntarily employed. If employees ?nd that the Company has the above prohibited behaviors, they can complain to their superi-ors orally or in writing.
Human Rights Protection
During the reporting period, the signing rate of employee labor contracts was 100%, and there was noemployment discrimination, harassment, child labor and forced labor.
Protection of Employees' Rights and Interests
Protection of the Legitimate Rights and Interests of EmployeesCrystal-Optech regards employees as the ?rst resource for the Company's development, adheres to the people-oriented principle,cares about and respects employees' rights and interests, and is committed to creating a diverse, healthy and inclusive workingenvironment for employees, paying attention to employees' physical and mental health, constantly optimizing the employeestructure, improving employees' welfare protection, and enhancing employees' sense of belonging and cohesion.
Employee Composition of Crystal-Optech in ????
Talent Recruitment and RetentionTalent RecruitmentThe Company formulates the Recruitment and Employment Control Procedure, which speci?es the recruitment conditions, recruit-ment principles, interview procedures and employment procedures. The Company adheres to the principle of diversi?ed recruit-ment, including social recruitment, online channels such as BOSS, ??job, Liepin and so on; School recruitment, including Changc-hun University of Science and Technology, Shaanxi University of Science & Technology, Xi 'an Technological University, etc.;Entrusting the labor department to recruit and cooperating with headhunting companies, etc., and also including internal recruit-ment, labor dispatch, media recruitment and other channels. In addition, the Company has specially opened recruitment channelsfor veterans and disabled people, and tailored suitable positions according to their unique skills, experience and personal charac-teristics.
Number of Employees (by Region)ChineseMainland
Hong Kong, Macau, and Taiwan, China
OverseasRegions
Number of Employees (by Employee Level)
The SeniorManagement
MiddleManagement
IndividualContributorsNumber of Employees (by Gender)
FemaleMale
Number of Employees (by Profession)
ProductionSalesTechnologyFinanceAdministration
Number of Employees (by Age)
Under ?? (exclusive) years old?? (inclusive) to ?? (exclusive) years old?? (inclusive) to ?? (exclusive) years old?? years old or above
Number of Employees (by Academic Quali?cation)Doctoral DegreeMaster’s DegreeBachelor’s DegreeCollegeDegree
High SchoolDegree (TechnicalSecondary School Degree)
Junior High SchoolDegreeor Below
??.??%??.??%
??.??%
??.??%
??.??%
??.??%
?.??%
??.??%??.??%
??.??%??.??%
?.??%?.??%
??.??%??.??%
??.??%
?.??%?.??%?.??%
?.??%?.??%?.??%?.??%
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International Working Women's Day (March ?) ActivityCelebrating the Dragon Boat Festival with doing Sachet
The ?th Crystal-Optech Basketball Competition
Team Building ActivityEmployees’ Congress
Crystal-Optech Basketball Team Friendly Match
Manual DIY Activity
Employee Care
Celebrating the Dragon Boat Festival with Tug of WarCelebrating the Dragon Boat Festival with Dumplings
The Company attaches great importance to the construction of humanistic care for enterprises, cares for employees in all aspectsin work and life, carries out rich employee activities, enhances mutual understanding and trust among employees by promotingcommunication and cooperation among teams, creates a harmonious and positive working atmosphere, and lays a solid humanis-tic foundation for the long-term development of the Company.
During the reporting period, the Company's employee satisfaction was 80%;the employee participation rate of employee satisfaction was 92%.
Key Performance:
Key Performance:
Salary and Bene?ts Management Management System
The Company formulates the Salary Management Regulations, and the salary design follows the concepts of fairness, competitive-ness, incentive, legitimacy, di?erentiation and sustainability, aiming at building a system that meets the needs of employees andsupports the strategic objectives of enterprises. The system principle emphasizes external competitiveness and internal balance,and the salary structure includes ?xed income, ?oating income and long-term incentive, in which ?oating and long-term incentiveare linked to company and individual performance. Bene?tsThe Company has formulated the Regulations on the Management of Employee Bene?ts for all domestic employees, and employeebene?ts include social security bene?ts, working conditions bene?ts, employee living bene?ts, employee health bene?ts, enter-tainment and family activities bene?ts, etc. The Company shall pay social insurance and housing provident fund for employeeswho sign labor contracts with the Company according to law; Employees enjoy work bene?ts such as clean room allowance, nightshift allowance and transportation allowance; The Company provides some employees with dormitory, holiday bene?ts, birthdaybene?ts, retirement condolences and other living bene?ts.
Strengthened Democratic Management
The Company has established the Labor Union Work Procedure and Employee Appeal and Handling Procedure, and has set up alabor union and employees’ congress. As an organization that represents and serves the interests of all employees, the employ-ees’ congress is elected by employees, and its daily work is to accept employees' complaints, collect employees' opinions andre?ect them to the management of the Company; labor union members are democratically elected by the employees’ congress,and employees are organized to participate in democratic decision-making, democratic management and democratic supervisionof their own units through the congress of workers and sta? in accordance with the law.Employees can lodge complaints when they encounter behaviors that they think endanger their rights and interests or violate lawsand regulations at work. In order to protect employees from retaliation, employees can lodge complaints anonymously, throughthe general manager's mailbox, WeChat o?cial account, email, telephone and other channels.
During the reporting period, the Company's social insurance coverage rate was 100%;welfare expenditure is RMB 9.63 million; the per capita paid annual leave was 3.5 days.
Assessment Mechanism
In order to standardize the management of the Company and form a scienti?c incentive and restraint mechanism, the Companyestablished a performance appraisal mechanism according to the actual situation. The performance appraisal mechanism is quar-terly KPI assessment, which covers both performance and personal growth. The process includes performance planning, imple-mentation and counseling, assessment and interview, and complaints and results feedback. Individual assessment and teamassessment results are linked to each other.
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Key Performance:
The Company employs external lecturers to carry out internal training, with a total of more than ??? lecturers, ranging from juniorto special, to provide internal training for all departments of the Company, help the Company create an internal learning atmo-sphere, strengthen internal communication, and improve employees' professional skills and quality.Organization and Implementation of Internal Training
The Company has a professional development program for engineers and is carrying out activities such as the ???? Crystal TalentPlan and Crystal Worker Skill Level Certi?cation. Through skill recognition, the Company aims to improve the growth path ofemployees from junior, intermediate, and senior workers to technicians and senior technicians, providing employees with a broad-er and more comprehensive platform for skill enhancement. In addition, the Company has established New Crystal Cadre GrowthCamp, New Crystal Cadre Training Camp, and New Crystal Talent Growth Camp, aiming to enhance the comprehensive quality ofemployees and cultivate quali?ed cadres for Crystal.
Sta? Training Program
Sta? Training ManagementThe Company established Crystal Business School in ????, adhering to the mission of "immediately, accurately and e?ectively serv-ing the cultural heritage, strategic landing and business growth of Crystal" and the teaching philosophy of "integrating knowledgeand practice, training and warfare", and creating a knowledge platform, learning platform and service platform covering the wholearea of Crystal, so as to provide su?cient endogenous talent guarantee for the Company's development.In addition, the Company established a learning growth system to evaluate and manage the learning growth of employee training,and at the same time formulated learning growth evaluation standards to evaluate the training results from three aspects: credits,learning ability Indicator and learning sharing Indicator.
Training Platform Construction
Employee Training and Development
Crystal-Optech attaches great importance to talent development and training, sets up reasonable development channels foremployees, builds a comprehensive training system, carries out diversi?ed training programs, and gives employees the mostappropriate resources and e?ective learning modes, so that employees can continuously improve themselves and fully demon-strate their professional value.
Orientation and Planning of Crystal Business School
New Crystal Cadre Training Camp
In 2024, the Company invested a total of RMB 2,909,500 in employee training;
986 training sessions; the total number of trainees was 6,570;
the total number of trainees was 25,697; the total training duration is 32,899.89 hours; sta? training coverage rate was 53%.
Grinding Technician Training
Case
In ????, the Company conducted training for grinding technicians, aiming to enhance employees' grinding skills andcultivate a team of skilled technicians who can teach. There were a total of ? trainers and ?? students participating in thistraining.
Grinding Technician Training
Crystal Business SchoolMissionOrientation
Leadership academy (building future leaders)Strengthening camp for current cadres (enhancing leadership)Training camp for new cadres (new cadres turn around)Reserve cadre growth camp (consolidating management ability)
Team leader training campCrystal mentor team developmentCurriculum system developmentKnowledge base developmentTraining system developmentProject operation processE-learning platform
Innovation of cultural activitiesUpgrade of employee
experienceBehavioral cultural tractionConcept culture propagandaResourcesdevelopmentInfrastructuredevelopmentCultural temperaturedevelopment
Crystal talent(college students) project
ProcessesQualityEquipmentProductsProjectmanagementJingwei(new employee) project
Crystal worker level certi?cation
Engineering academy (building a team of engineers)
Serve the Company's cultural heritage, strategic landing andbusiness growth immediately, accurately and e?ectively.Establish a talent development mechanism, build a talent emergenceorganization, and stimulate the temperature of organizational culture.
Professional development project for engineers
Employee Development AccessThe Company provides support and platform for the growth of employees, and provides a broader development space for talentswho dare to challenge themselves and develop in an all-round way. The Company has formulated the Craftsman Ladder (T-se-quence) Promotion System for Career Planning and the Management System for Excellence Ladder Promotion Path for Career Plan-ning, which divide professional promotion channels for front-line backbone employees. According to the above system, leadersassist subordinates in formulating and implementing career development plans, regularly evaluate the e?ectiveness of subordi-nates' career plans, propose improvement suggestions, and provide necessary support and assistance; employees follow the guid-ance of the craftsman ladder, continuously improve their professional abilities, actively participate in various training provided bythe Company, and independently apply for professional levels.Artisan Ladder Level Setting
Level AbbreviationCore ValuesTypical Portrait
T?T?T?T?T?
Development
PracticeLearning
Masters
Experienced PersonnelBeginnerExcellence Ladder Level Setting
Level AbbreviationCore ValuesTypical Portrait
P?P?P?P?P?P?P?P?P?
Leading
Innovation
Development
Authority
Expert
Masters
PracticeLearning
Experienced PersonnelBeginner
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Walk Hand in Handin Public Welfare andJointly Paint a Scrollof Love
Crystal-Optech has always regarded corporate social responsibility as an important mission, actively practicing social responsi-bility, focusing on rural revitalization, social enterprise co-construction, charitable donations and other ?elds, and contributingto social construction.
Our Philosophy
Our ActionsIncrease community contributions, help rural revitalization, and participate in charity
Responsive SDGs
CRYSTALOPTECH
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Rural RevitalizationPublic Welfare and Charity
Crystal-Optech actively responded to the call of the country to "promote rural revitalization in an all-round way" and implementedthe crystal gratitude culture. The Company set up the Gratitude Foundation to empower the rural revitalization in the help areasthrough consumption assistance, education assistance and employment assistance, constantly meeting the people's growingneeds for a better life, and promoting the comprehensive rural revitalization to achieve new breakthroughs and a new level. In????, the Company invested a total of RMB ???,??? in rural revitalization.
Consumption AssistanceThe Company actively carried out consumer assistance work, and carried out consumer assistance to poverty-stricken areas suchas Ganzi Prefecture, Sertar County and Nanchong County in Sichuan Province, where Jiaojiang District of Taizhou City, ZhejiangProvince helped counterparts, and purchased agricultural and sideline products in a way of "love subscription" totaling RMB??,???.
Educational AssistanceThe Company focuses on the development of rural education. In ????, the Company's Gratitude Fund donated RMB ??,??? toHongjia Second Middle School to support teaching facilities and improve the school's teaching environment; provide ?nancialassistance to ? impoverished students in Zhongtou Town, Jia County, Henan Province, with a donation of RMB??,???. By continu-ously promoting poverty alleviation through education, we aim to build a culture of gratitude within the Company and contributeto the prosperity and development of rural education.
Rural Revitalization
Donate Hongjia Second Middle SchoolCrystal-Optech has Helped Sertar 's Education Development for Three Consecutive YearsCase
Since Jiaojiang was paired with Sertar, the Company has been committed to helping Sertar and always caring aboutSertar education. The Company sponsored the implementation of Jiaojiang-Sertar education and employment integra-tion project for three consecutive years, and donated a total of RMB ???,??? to support Sertar students' study and life inJiaojiang. The injection of this fund will solve practical di?culties for Sertar students, relieve their worries, and let themstudy with peace of mind, improve their grades, broaden their horizons and increase their talents.
Key Performance:
In 2024, the Company's total public welfare investment was RMB168,000.
Employment AssistanceCrystal-Optech has e?ectively participated in the action of helping agriculture through consumption. As the "Taizhou Demonstra-tion Base for Employment and Poverty Alleviation", it has actively absorbed thousands of registered poor laborers and members ofurban and rural low-income families and those on the verge of being low-income, created more employment opportunities forpoor laborers and actively ful?lled their social responsibilities.
The Company has maintained a friendly relationship with the PLA resident forces for many years. On the occasion of the ??th anni-versary of the founding of the PLA, the Company hereby applies for the Gratitude Fund, donating RMB ??,??? to the resident o?-cers and soldiers, sending holiday condolences, actively providing help within its ability for the army building, and improving com-munication and joint construction with the army.
Crystal-Optech actively participates in social welfare undertakings, orderly carries out external donation work, dedicates love withpractical actions, and contributes to the construction of a harmonious society.
Public Welfare and Charity
Zhejiang University Leaders Present Honor Certi?cates and Gratitude Plaques to Crystal-Optech
Crystal-Optech Donates RMB 2 Million to the College of Optical Science and Engineering at Zhejiang University
Case
In this era of rapid technological advancement, the deep integration of education and industry has become an importantforce driving social progress and technological innovation. Crystal-Optech has taken practical actions to ful?ll its socialresponsibility and donated RMB ? million to the College of Optical Science and Engineering at Zhejiang University, withthe aim of promoting educational development and technological innovation in the ?eld of optics, and contributing tothe cultivation of more outstanding optoelectronic talents. This donation is not only a high recognition of the education-al capabilities of Zhejiang University by Crystal-Optech, but also demonstrates Crystal-Optech's deep concern for educa-tion and its high sense of responsibility for the cultivation of future scienti?c and technological talents.
Signing Ceremony for the Integration Project of Vocational Education and Employment
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Sections ofthe Report
Global Sustainable
DevelopmentReporting Standard
(GRI Standards)
Chinese Corporate SocialResponsibility Report Guidelines (CASS-ESG6.0)
Self-Regulatory Guidelines No. 17for Companies Listed onShenzhen Stock Exchange—SustainabilityReport (For Trial Implementation)
P?.?/P?.?P?.?P?.?P?.?
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About This Report?-?/?-?P?.?/P?.?Message from theChairman
AboutCrystal-Optech
Company
Pro?leDevelopmentStrategyDevelopmentHistoryHonorsPerformancein ????
Corporate
Culture
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ESGManagem-
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ESG Goaland Vision
Article ?Article ??ESGGovernanceCommunica-tion withStakeholdersManagementof Material
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Excellencein Govern-ance, Buil-ding theCornersto-ne of Dev-elopment
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StandardizeCorporateGovernance
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ProtectingInvestors'Rights andInterestsPracticingBusinessEthics
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Green Lea-dership,Co-Creat-ing a Low-CarbonFuture
Response toClimateChange
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Looking Ahead
???? is the closing year of the "??th Five-Year Plan". Crystal-Optech will continue to uphold the corporate vision of "becoming aglobally outstanding one-stop optical solution expert", adhere to sustainable development, practice corporate social responsibili-ty with practical actions, continue to deepen the ?elds of environment, society and governance, and contribute more to globalgreen transformation and sustainable development.In terms of environment, the Company will continue to fully implement the concept of green manufacturing, and strive to achievelow-carbon, recycling and harmlessness in the production process, optimize the production process, reduce energy consumptionand reduce emissions; in the process of product R&D and production, we will actively use environmentally friendly, degradable orrecyclable materials to reduce environmental pollution, explore the application possibilities of more environmentally friendlymaterials, and contribute to the green development of the optical industry.In terms of society, the Company will always pay attention to the protection of customer rights and ensure the quality and safety ofproducts; keep up with the forefront of the industry and continue technological innovation, and continue to build and improve thetechnological innovation system; actively participate in community construction and public welfare activities, support the devel-opment of education, environmental protection, poverty alleviation and other undertakings; provide employees with more diversetraining courses and career development opportunities, achieving a win-win situation between personal value and enterprisedevelopment.In terms of governance, the Company will regard sustainable development as one of the core strategies for enterprise develop-ment, formulate clear sustainable development goals and plans, regularly evaluate the implementation of sustainable develop-ment strategies, adjust and optimize strategic directions in a timely manner, and ensure that the company continues to moveforward on the path of sustainable development.
IndexesAnnex
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Thank you for reading the2024 Environmental, Social and Corporate Governance Report of Zhejiang Crystal-Optech Co., Ltd.
To improve the work of Crystal-Optech in environmental, social, and corporate governance aspects, further enhance theCompany's ability and level of sustainable development, and strengthen communication and exchange with all sectors ofsociety, we sincerely hope that you can provide valuable opinions and suggestions on our work and report amidst your busyschedule.Your InformationName: Tel:
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Green Lea-dership,Co-Creat-ing a Low-CarbonFuture
People-oriented,Buildinga Harmo-niousWorkplace
OccupationalHealth and Safety
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Protection ofthe LegitimateRights andInterests ofEmployeesEmployeeTraining andDevelopmentWalk Handin Hand inPublic We-lfare andJointly Pa-int a Scrollof Love
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Annex
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Environmen-tal Complia-nce Manag-ementResourceManagement
Value Co-creation,Writing aNew Cha-pter of De-velopment
Innovation-Driven
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Supply ChainManagement
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Global SustainableDevelopmentReporting Standard(GRI Standards)
Chinese Corporate SocialResponsibility Report Guidelines (CASS-ESG6.0)
Self-Regulatory Guidelines No. 17for Companies Listed onShenzhen Stock Exchange—SustainabilityReport (For Trial Implementation)