巨星科技(002444)_公司公告_巨星科技：巨星科技2020年度ESG报告（英文版）_公司公告

巨星科技：巨星科技2020年度ESG报告（英文版）（下载公告）
公告日期:2021-08-24
1杭州巨星科技股份有限公司 2020年度ESG报告 ’?\[i This report is the ?rst ESG report issued byHangzhou GreatStar Industrial Co., Ltd. anddiscloses the company's philosophy, measuresand performance in ful?lling its economic, social,environmental and governance responsibilities.Prior to the release of the report, all data andrelated contents have been reviewed by thedepartments and management on multipleoccasions, and there are no false records,misleading statements or material omissions.The policies and data provided in this reportencompass the Company and its subsidiaries andare consistent in scope with the annual report.Unless otherwise stated, the currency used in thereport is RMB. For ease of presentation, HangzhouGreatStar Industrial Co.,Ltd. is also referred toas "GreatStar Technology", "GreatStar", "theCompany" or "we".GRI Sustainability Development Report Standardsissued by Global Sustainability Standard BoardISO 26000:Guide to Social Responsibility issuedby International Organization for StandardizationChina National Standards, GB/T 36000-2015Guidance on the Compilation of Corporate SocialResponsibility ReportShenzhen Exchange Stock: Guidelines forStandardized Operation of Listed Companies ofShenzhen Stock Exchange (Revised in 2020)This report is in Chinese and is published in bothprinted (printed on environmentally friendlypaper) and electronic formats.The electronic version is available on the websiteof Shenzhen Stock Exchange: http://www.szse.cn/. Notes to the Report Scope and Boundary of the Report Basis for Compilation Access to the Report Message from the Chairman Responsible GreatStarAbout GreatStar Technology Honored GreatStar 01 0503 05 Development HistoryAnalysis of Substantive IssuesStakeholder Communication 070910 Company GovernanceAnti-corruption and Integrity PromotionCompliance Operation 11Governance of Responsibility Quality ControlCustomer ServiceData SecurityIntellectual Property Focus on R&D 19Excellent Quality Management SystemOccupational HealthEnvironmental Protection 33EHS Management Compliance EmploymentEmployee DevelopmentHumanistic Care 41Ful?llment of Employees Win-win CooperationCommunity CharityFighting the Epidemic Together Develop Hand in Hand Indicator IndexReader Feedback Form5564 Directory 0102’?\[i杭州巨星科技股份有限公司 2020年度ESG报告 Message from the ChairmanDear?Stakeholders, Hangzhou GreatStar Industrial Co., Ltd. Signature of the Chairman Thanks for reading the ?rst Environ-mental,?Social?and?GovernanceReport of GreatStar. In response toyour interest and concern, GreatStarhas systematically reviewed theenvironmental, social and governancepractices and highlights in 2020. Inaddition to summarizing the resultsof the previous year, we also hopeto get constructive suggestions fromour distinguished readers, so as toimprove our management and practicecapabilities in ESG, and thus helpingour company to realize our visionof "building a centennial brand andcreating a centennial enterprise".In the face of the sudden outbreak ofCOVID-19, GreatStar formulated and handling in process, and preventedsafety risks and safeguardedenvironmental safety in practice. In2020, we invested a lot of resources inEHS management, and spent more than460,000 yuan on equipment renovationin Haining factory only, and the numberof work-related fatal accidents was 0.In addition to deepening our business,we focus on the corporate cultureof "customer ?rst, continuousimprovement, team collaboration,innovation and mutual bene?t", andstrictly comply with the laws andregulations of the places where weoperate to ensure compliant operationand responsible production. implemented measures to prevent theepidemic, and actively supported ouremployees' lives and psychologicalwell-being while ensuring their healthand safety. In addition, we closelymonitored the development of theglobal epidemic and provided supportand assistance for the prevention andcontrol of the epidemic as much aswe could, striving to demonstrate ourresponsibility and commitment asa global corporate citizen. By takingadvantage of our business operationsand resource allocation, we donatedmuch-needed epidemic preventionmaterials to overseas customers,epidemic prevention funds to overseasChinese, and masks to workers ?ghtingon the front lines in China. We are also committed to the mutualachievement of our employees andthe company. 227 intensive employeetraining sessions were organizedand conducted in 2020, with a totalof approximately 14,397 hours ofclassroom time, covering 5,097 people.At the same time, we strive to enhancethe happiness of our employees, notonly by ensuring that the average salaryof our employees is higher than theprovincial average salary standard inZhejiang Province in 2020, but also byproviding rich bene?ts and and carryingout diversi?ed activities. To help createa fair workplace, we actively promotethe diversity of our board of directors.By the end of 2020, the percentage Environmental protection andoccupational health and safetymanagement are the key concernsof our company. In response to thenational concern for environmentalprotection, we integrate the conceptof environmental protection into ourdaily production and operation, andactively promote the implementationof the philosophy of green productdesign, green factory construction andgreen o?ce, in order to implementthe concept of energy saving and low-carbon and contribute to the ecologicalenvironmental protection of China. Inorder to guard the occupational healthand safety of our employees, we haveclari?ed our supervisory responsibilitiesin management, standardized accident of female directors on our Board ofDirectors is approximately 55.6%.Looking ahead, we will uphold themission of "leading the technologicalprogress of tools and becomingthe benchmark of innovation in theindustry", continue to promote theimprovement of ESG managementof the company, actively assume theresponsibility to customers, investors,employees and other stakeholders, andbecome an enterprise with a high senseof social responsibility that contributesto the environment and society. About GreatStar Industrial Environmental, Social and Governance Report 2020 About GreatStar Industrial Company Pro?le Company Culture Company Strategy Hangzhou GreatStar Industrial Co., Ltd. was founded in 1993, and was listed on the Shenzhen Stock Exchange in July 2010 (stockcode: 002444). The company specializes in the research and development, production and sales of hand tools, power tools, lasermeasuring instruments, storage bins and other products, which have been widely used in various ?elds whether in household dailyuse, tourism and outdoor use, aerospace, or in the manufacturing and processing industry, repair industry, construction industry,etc. It is the largest hand tool company in Asia and the top three in the world, and it has been rated as "top 100 Private Enterprisesin Zhejiang Province" and "top 500 Enterprises in China's New Economy".Since its establishment, the company has become one of the major global hand tool suppliers to many Fortune 500 retailers suchas Home Depot, Lowe's, Walmart in the U.S., King?sher in Europe, and CTC in Canada, etc. with its strong product power andcomprehensive competitive advantages. By the end of 2020, the total assets of the company reached 13.678 billion yuan, with 7,376employees and manufacturing bases in the United States, Italy, Germany, Switzerland, Vietnam, Thailand, Cambodia, China andother countries, and customers on all ?ve continents. To lead thetechnologicalprogress of tools,and become thebenchmark ofindustry innovation To create acentury-old brandand achievea century-oldenterprise Details determine success or failure Customer ?rst,pursue of excellence,teamwork spirit,innovation formutual bene?t Utilizing the existing large-scale European and American supermarkets and e-commerce self-operated channels, we will focus on the main business with tools as the core product, whilewe will continue to dispose of non-core business assets to recover cash and use it for thedevelopment of the main business. Relying on extensional mergers and acquisitionsout, we willfully develop non-hand tools products including power tools and outdoor products. We will strengthen the construction of our own brand service system in Europe and America and the layoutof production capacity in Southeast Asia, select high-quality foreign companies for industrial merger andintegration, better access to international resources and international markets, and gradually upgradefrom an ODM company made in China to an international OBM company combining Chinese design, Asianmanufacturing and local services in Europe and America. Relying on the Southeast Asian supply chain network with China as the core and the Chinese engineer dividend,we will dominate the current round of global supply chain division of labor in the tool industry, continue toexpand our leading position in the industry, lead the development of the international tool industry, andgradually take over the current round of industrial transfer in Europe and the United States in the era ofinnovation economy with the creation of customer demand as the core in the future. We respect the century-old development history of the hardware tool industry, and relying on the characteristicsof slow growth and stable cash ?ow in the consumer durables ?eld, we plan our own business and developmentpath in a long-term period, and gradually cultivate new business growth points, and ?nally become a stablecompany with sustained growth, healthy development and long-term value providing for the society. Focus on themain business Company Mission CompanyVision Company Values Company CulturePhilosophy Global layout Based in China Long-term planning 2020 Responsible GreatStar sta? training sessionsthe equivalent amount ofdonated materials to customers during the epidemicnumber of people coveredtotal training hours number of R&D personnel R&D investmentnumber of new R&D product Responsible GreatStar Honored GreatStar total assets number of workdays lost due to number of work accidents total pro?t number of employees whoparticipated in medicalexaminations for occupational-related diseases number of fatal accidents at work total operating income number of employees who diedas a result of their work number of fatal accidents due to work basic earnings per share number of work-related injuries death rate per million workinghours 2018/ 2018 757.5 2019/ 2019 Over 5 millions 2020 363.5 Performance Indicators Performance Indicators Performance Indicators Performance Indicators Performance Indicators sessionpersonhourUnit personpiece Unit 100 million yuan100 million yuan100 million yuanyuan/share Unit 3,32114,6002018 20,697.501,5682018 92.81 8.81 59.35 0.67 2018 5,05815,8902019 20,377.271,5862019 111.32 10.45 66.25 0.84 2019 5,09714,3972020 24,537.211,6292020 136.78 15.64 85.44 1.27 2020 Honor listIssuer Honor listIssuerHangzhou Famous Export Brand in 2019Hangzhou New Consumption Outstanding Contribution Enterprise (Toolmall)Enterprises with Outstanding Tax Contributions in Jianggan District in 2019Top 10 Classic Cases of Industrial Design in Hangzhou in 2020 (fast ratchetsqueeze wrench)Top 10 High-Quality Development Enterprises in 2019Winning Enterprise of Intelligent Transformation in 2019Top 10 Tax Contributors in 2019 Best Manufacturing Company of 2020(U.S. subsidiary Arrow Fastener Co., Inc.)China’s Top 500 New Economy in 2020China Patent Excellence Award (screwdriver)Zhejiang Foreign Trade Export Key Contact Enterprise in 2020-2021Top 20 Local Private Multinational Companies in Zhejiang in 2017-2019Top 50 Local Private Enterprises in Zhejiang for Multinational Operations in 2020Zhejiang Patent Excellence Award (screwdriver) New Jersey Chamber of Commerce and Industryof the U.S.China Enterprises Evaluation AssociationNational Intellectual Property Administration,PRCZhejiang Provincial Department of CommerceZhejiang Provincial Department of CommerceZhejiang Zhijiang Multinational CorporationResearch Institute, Zhejiang Overseas InvestmentEnterprise AssociationZhejiang Provincial Intellectual Property O?ce,Zhejiang Provincial Market Supervision andAdministration Bureau Hangzhou Municipal Bureau of CommerceHangzhou Municipal Bureau of CommerceCPC Hangzhou Jianggan District Committee, HangzhouJianggan District People’s GovernmentHangzhou Industrial Design AssociationPeople’s Government of Chang’an Town, Haining CityPeople’s Government of Chang’an Town, Haining CityPeople’s Government of Chang’an Town, Haining City FinancialPerformance Human Resources SocialDevelopment Research andDevelopment(R&D), andInnovation Health andEnvironment Environmental, Social and Governance Report 2020 ten thousand yuan Unit Unitday timeperson person person timeperson % dollar 08杭州巨星科技股份有限公司 2020年度ESG报告07Development History The road of GreatStar startup set sail in Room1004, Hangzhou Building Acquired GOLDBLATT, a century-old U.S.construction tool brand The central laboratory of Hangzhou GreatStarIndustrial Co., Ltd. was awarded the "LaboratoryAccreditation Certi?cate" by China NationalAccreditation Service for Conformity Assessment Hangzhou GreatStar Tools Co. Ltd. wasformally established Hangzhou GreatStar Industrial Co., Ltd. waslisted on the Shenzhen Stock Exchange GreatStar Industrial established a roboticssubsidiary, opening a new chapter inintelligent manufacturing Purchased the company's ?rst blistermachine from Taiwan and established theblister workshop SHEFFIELD steel shield industrial gradeproducts formally entered the domesticmarket GreatStar Industrial's professional sales tool "toolmall.com" was online Purchased the ?rst injection moldingmachine and produced the ?rst product-thewatch screwdriver GreatStar Industrial entered cross-bordere-commerce for the ?rst time, and openeda branded store in Amazon in the UnitedStates. We applied laser engraving technology to thehammer wooden handle for the ?rst time inthe world, giving the smooth wooden handlea anti-slip function, and applied for a patentin the United States Xiasha production base was completed The establishment of Hangzhou GreatStarIndustrial Co., Ltd.1992 2010 2011 1993 2010 2014 1994 2010 2015 1996 2009 2016 1997 2008 2020 2001 2005 Development History Establish company headquarters, packaging centerand logistics center in Hangzhou Jianggan Scienceand Technology ParkPurchased 200 acres of land in HainingLianhang Development Zone and planned tobuild Haining production base GreatStar Industrial acquired Shop-Vac, awell-known brand of vacuum cleaners inNorth America, and fully entered the 100billion power tool market Environmental, Social and Governance Report 2020 10杭州巨星科技股份有限公司 2020年度ESG报告09Analysis of Substantive Issues Stakeholder Communication The Company actively establishes a regular communication mechanism with its stakeholders, actively responds to the demandsand expectations of each stakeholder through multiple channels and targeted approaches, and makes timely adjustmentsaccording to the communication situation to jointly promote the sustainable and healthy development of the Company. In 2020,the company responded to the issues of interest of various stakeholders as follows: According to the Global Reporting Initiative (GRI) Standards, GreatStar Industrial conducts analysis of substantive issues based onthe steps of identi?cation, ranking, and inspection. Every year, the company adjusts issues based on national policies, industrytrends, and annual hot issues. StakeholdersExpectations and demandsResponse initiatives Community constructionEnvironmental responsibility Shareholder returnsEarnings growthInvestors relations Business ethics and anti-corruptionFair and equitable procurementWin-win cooperation Providing quality products and servicesContinuous product innovationProtecting consumer rightsProtecting customer privacy Compensation & bene?tsTraining and promotionDemocratic participation in managementOccupational health and safety Integrity in businessPaying taxes according to lawAchieving high quality developmentPromoting employmentContributing to the industry development Signing integrity agreementSupplier trainingSupplier audit and inspectionPromoting the green supply chain Shareholders' meetingCompliance governanceInformation disclosureCash dividendInvestors interaction Carrying out charity activitiesSetting up the GreatStar FoundationActive participation in community servicePromoting green production and green o?ceImplementing energy saving and pollution control Paying taxes on time and in fullPromoting compliance managementProviding employment opportunitiesEnhancing R&D capabilitiesParticipating in industry eventsDeveloping industry standards Strict quality controlProduct safety testingIncreasing investment in R&DImproving customer service systemCustomer satisfaction surveyGuaranteeing user information security Equal, diversi?ed and inclusive working environmentImproving compensation and performance managementEstablishing long-term training mechanismEmployee care activitiesEmployee opinion and consultationEnsuring safety production Government/Regulatory Shareholders/Investors Employee Supplier Customer Community Analysis of Substantive Issues Through questionnaires andsurvey interviews with internaland external key stakeholders,we systematically quantify andanalyze the materiality of impactand the materiality of stakeholderconcerns as dimensions to forma substantive issue matrix. Note: Substantive issue matrix of GreatStar Industrial The company’s seniormanagement and the workinggroup validate the substantiveissue identi?cation results, andform the ?nal substantive issuematrix. Based on the GRI Standards,the 22 substantive issues weresorted out after internal workinggroup discussions with referenceto SASB Materiality Map,domestic and international peercompanies’ substantive issuesand the business characteristicsof GreatStar Industrial. RankingCon?rmingIdenti?cation Importance to GreatStar Industrial Addressing climate changeDesigning greenproducts Reducing energyconsumption Supporting community developmentCreating a greensupply chain Network and datasecurity Consumer privacyprotectionStrengthening supply chainmanagement Disposal of “three wastes” Life and work balance ofemployees EHSmanagement Product quality and safety Occupational healthand safetyProtection ofemployees' basicrights and interests Tightening the focus on anti-corruptionand integrity promotion Improving business performanceStrengthening compliance operations Ful?lling business ethics Improving company governanceEnhancingcustomersatisfactionCareer development andeducation trainingProtectingintellectualpropertyImportance to Stakeholders Environmental, Social and Governance Report 2020 12杭州巨星科技股份有限公司 2020年度ESG报告 Operating income billion yuan Female directorspeople 85.44 Governance of Responsibility In strict accordance with relevant laws and regulations, GreatStarIndustrial has established a sound corporate governance structureand a system to protect shareholders' rights and interests,continuously improved its operations, carried out strict internalcontrols, internal supervision and integrity culture promotion,ensured sound operations of the company, and e?ectivelyresponded to the expectations and demands of shareholders andvarious stakeholders. 1314’?\[i杭州巨星科技股份有限公司 2020年度ESG报告 Company GovernanceIn strict accordance with the "Company Law of the People's Republic of China", "Securities Law of the People's Republic of China","Listed Company Governance Guidelines", "Shenzhen Stock Exchange Listed Companies Standard Operation Guidelines" and otherlaws, regulations and normative requirements, the Company, judging from the actual situation, established and improved the"Rules of Procedures for the General Meeting of Shareholders of the Company", "Rules of Procedures for the Board of Board of DirectorsPresident Executive President O?ce of the Chairman Business Management O?ce Export Center Research and DevelopmentCenter Quality Control Center E-commerce Center E-commerce IT Department Laser Measurement Department Organization Chart of GreatStar Industrial Purchasing Center Environmental, Social and Governance Report 2020 Responsibility Governance Information Center Software Application Department 1Software Application Department 2Hardware Operation andMaintenance DepartmentSoftware Research andDevelopment Department Securities and InvestmentDepartment Legal DepartmentSecurities DepartmentInvestment Department Administration Center Administrative O?ceHuman Resources DepartmentInfrastructureEngineering Department Logistics Department Financial Center Ministry of Foreign Trade and FinanceFinancial AccountingDepartmentFinancial ManagementDepartmentInternational ManagementDepartmentFund Management Department Quality AssuranceDepartmentQuality ControlDepartmentCentral Laboratory Laser Products DivisionAdministrativepersonnel departmentChannel OperationDepartmentTumao. com Operation DepartmentSupply ChainManagement Department Brand PromotionDepartmentMarketingDepartmentWarehousingDepartmentProduct TechnicalSupport DepartmentOwn-brand Operation DepartmentCustomer Service Department Material and Process Research InstituteElectric ApplianceTools DepartmentOwn-brand ToolsDepartmentProject GeneralDepartmentArrow AslaDepartment Mechanical ToolsDepartmentKnife and ScissorsDepartmentIntegrated Design DepartmentRapid Prototyping Department ComprehensiveTool ProcurementDepartment IComprehensiveTool Procurement Department II Machinery ToolsProcurementDepartment Decoration Tools ProcurementDepartmentE-commerce Procurement DepartmentPackaging Procurement Department ProcurementDevelopment Department ARTWORK Design DepartmentOwn-brandManagementDepartment Export Department IExport Department IIExport Department IIIExport Department IVExport Department VExport Department VIExport Department VIIExport Department VIIIInternationalE-CommerceDepartmentMarket DevelopmentDepartmentMarketing SupportDepartmentGOLKDBLATTDepartmentDocumentationDepartment directors of the Company", "Rules of Procedures for the Board of Supervisors of the Company", "Administrative Measures for FundsRaised by the Company" and "Administrative System for Providing Externally Financial Aid" and other rules and regulations, whichhas formed a perfect operating system for important matters such as foreign investment, entrusted ?nancial management, andderivatives transactions. ’?\[i The general meeting of shareholders is the company's highest authority, which exercises the power to decide on majormatters such as the company's operating policies, investment plans, pro?t distribution plans, and amendments tothe articles of association. The company treats all shareholders equally, ensures that all shareholders have the right toknow and participate in major company matters, and ensure that all shareholders fully exercise their rights. The board of directors carried out its work in strictaccordance with the "Articles of Association", "Rulesof Procedure of the Board of Directors", "IndependentDirectors Working System", "Working Rules of the BoardSecretary", "Guidelines for the Normative Operation ofListed Companies on the Shenzhen Stock Exchange" andother systems, and strictly implemented the resolutionsof the shareholders' meeting. The committees under theboard of directors exercise their powers in accordancewith the law, give full play to their professionalism anddecision-making capabilities, perform their obligationshonestly and diligently, and convene special committeemeetings in a timely manner, to provide importantopinions for the company's decision-making, andto ensure the company's compliance operation anddecision-making accuracy. The Board of Supervisors convenes the Boardof Supervisors, attends the general meeting ofshareholders, and attends the Board of Directors asnon-voting delegates in accordance with the "Rulesof Procedures of the Board of Supervisors" andother rules and regulations, to e?ectively superviseand issue independent opinions on major companymatters, related transactions, ?nancial status, andperformance of directors and presidents. General Meeting of Shareholders Board of DirectorsBoard of Supervisors In the board of directors directors Female directors Independent directorsEmployee supervisors supervisorsIn the board of supervisorsFemale independent directors The company strictly complies with the "Shenzhen Stock Exchange Stock ListingRules" and other relevant requirements to perform its information disclosureobligations, prepare and disclose regular reports within the legal time limit, so thatthe report content is accurate and complete with no major omissions. During thereporting period, the company continues to improve the quality of informationdisclosure, discloses information that investors are concerned about in the formof temporary announcements, and proactively discloses quarterly performanceforecasts, the latest developments of epidemic prevention material business, neworders for lidar products, etc., to ensure that all stakeholders, led by shareholdersand investors, receive important information about the company in a fair and timelymanner. Information Disclosure The company continues to improve the legal person governance structure, establishesa corporate governance structure composed of the general meeting of shareholders,the board of directors, the board of supervisors, and operating management, clari?esthe hierarchical decision-making mechanism of"three meetings and one level"witheach level performing duties within the scope of its responsibilities and powers,forming a scienti?c and e?ective division of responsibilities and checks and balancesmechanism.In 2020, the company will organize and convene shareholder meetings, board ofdirectors, and board of supervisors in accordance with the rules, and its votingcomplies with legal procedures and the company's articles of association to ensurethe standardized operation of the three meetings. Operation of the three meetings Shareholders' meeting times times timesBoard of directors Board of Supervisors In 2020, a total of investor questions answered calls Temporary announcements disclosed The information disclosure rating has beenrated by Shenzhen Stock Exchange for fourconsecutive years From investors through ShenzhenStock Exchange interactive platform Disclosure documents A The company attaches importance to communication with the capital market,timely understanding of investor needs and market feedback, and establishes richcommunication and feedback channels to maintain timely communication withinvestors through various forms such as telephone, email, Shenzhen Stock Exchangeinteractive platform, performance brie?ngs, investor reception days, etc. to promoteinvestors' understanding of the company and convey the value of the company toinvestors.A?ected by the COVID-19, the company actively uses WeChat, telephone, email,website and other methods to maintain close communication with investors in 2020,and informs investors of changes in the company and the industry in a timely mannerthrough online brie?ngs and temporary announcements. Investors relations Environmental, Social and Governance Report 2020 Responsibility Governance 1718’?\[i杭州巨星科技股份有限公司 2020年度ESG报告 Anti-corruption and integrity promotion The company adheres to the principle of integrity and honesty in business, and in the attitude of responsibility to consumers andsociety, strictly implements the responsibility of anti-corruption and integrity promotion in all work, and maintains a good businessorder. At the same time, the company attaches importance to the construction of the culture of integrity, and actively promotesanti-corruption and integrity promotion to employees and organizes related training activities to establish a correct business ethicsorientation for employees. Compliance OperationThe Company has established a relatively complete internal control system and a standardized operating internal controlenvironment to ensure the orderly and e?ective conduct of all business activities and the legal compliance of operation andmanagement and the safety of assets.At the same time, the company has formulated and complied with the relevant provisions of the Internal Audit System andcontinuously organized all business departments and all holding subsidiaries to conduct self-evaluation of the e?ectivenessand implementation of the internal control system, to provide reasonable assurance of legal compliance of operation andmanagement, safety of assets, truthfulness and integrity of ?nancial reports and related information.In 2020, the Audit Committee of the Board of Directors, in accordance with relevant laws and regulations as well as the Articles ofAssociation and the Implementation Rules of the Audit Committee of the Company, diligently and responsibly, guided the AuditDepartment of the Company to review the internal control system and its implementation, important accounting policies, the?nancial position and operation, and the use and management of funds raised, providing e?ective guidance and supervision onthe ?nancial status and operation of the company. The company actively creates an incorruptible working environment Set up an anti-corruption committee with the chairman as director and the legal director, secretary of the board ofdirectors and human resources director as core members to strengthen supervision and discipline accountabilityand e?ectively prevent and control corrupt practices in the company Formulate and implement the "Regulations on Integrity Management of Sta? Integrity and Self-discipline Suppliers"and other related internal management systems, and sign the "Commitment of Sta? Integrity and Self-discipline"with employees in key positions such as procurement and administration, so as to strictly prohibit any corruptionor infringement of company property by employees taking advantage of their positions Establish a smooth and convenient complaint and reporting channel according to the internal "EmployeeGrievance Handling Procedures", and reward employees who actively use the reporting channel with a certainpercentage of the amount involved in corruption; implement a strict protection system for reporters, and promiseto keep the information of the reporters con?dential from any third party other than the receiver. Reporting channel Formulate and carry out regularly internal audits according to the Internal Audit System and the Exit Audit System.For the cases of corruption, fraud and commercial bribery found in the audit, we will con?scate the illegal income,dismiss, or make internal notice and other corresponding treatment according to the amount involved; if thecircumstances are serious, we will transfer them to judicial organs for treatment. Environmental, Social and Governance Report 2020 The company attaches great importance to network data security, constantly improves the construction of data securitymanagement system, formulates and implements the "Computer Network Information Security Management System" and othersystems to maintain the compliance operation of network information, ensure the security of computer data and the stability ofequipment, and fully implement data security management obligations.The company has set up a network security business learning group, organized regular training annually, and carried out networksecurity knowledge lectures and forums regularly or irregularly. In 2020, the company carried out "network information securitycontrol" thematic training sessions for employees in relevant positions to strengthen their network security awareness, throughthe introduction of the company's internal information security management system, as well as the in-depth study and discussionof how to prevent network security. Network Information Security Management structure Institutional system Internal monitoring Responsibility Governance 1920/>1w杭州巨星科技股份有限公司 2020年度ESG报告 Number of valid patents pieces R&D investment million yuan 1,542 24,537.21 Excellent Quality The company establishes a scienti?c and perfect qualitymanagement system, constantly optimizes the productevaluation process, and increases investment in R&D fundsand talent reserves to ensure that the company's productinnovation keeps pace with the market, accurately graspsthe direction of market development, and stimulates thecompany's market vitality and creativity. In addition toensuring product quality, the company has also establisheda sound customer service system to make services moree?cient and convenient in order to establish long-term andstable customer relationships. 2122/>1w杭州巨星科技股份有限公司 2020年度ESG报告 Quality ControlThe company attaches great importance to the control of product quality andhas established a top-down quality management system to carry out strictquality control of products. The company's quality control center has QAquality inspection department, QC quality inspection department and centrallaboratory, which are responsible for drafting and approving product inspectionprocedures, product quality inspection and mechanical performance, chemicaltesting, electrical performance testing, etc. This has greatly improved thee?ciency of product inspection and testing and provided practical guaranteefor product quality improvement. In addition, the company constantly improvesproduct quality, continuously improves the evaluation process, and participatesin the development of many standards, establishing a solid foundation for thedevelopment of its own brand and providing direction for the development ofthe industry. The company adheres to the quality management policy of "keep improving,seek quality and innovation", and always positions product quality managementas the top priority of production work. According to the requirements ofISO9001:2015 quality management system, the company has established acomplete quality control procedure; each subsidiary has established a qualitycontrol manual according to its production process and identi?ed the relevantperson in charge to manage it.The company's quality control system covers all aspects of management,procurement, production and sales, among which the president of the companyis responsible for supervising and guiding the quality control work in the R&Dstage, the quality control center and R&D center are responsible for executingspeci?c quality control work, and the relevant departments such as procurementand sales are responsible for their own responsibilities. The company carries outstrict quality control throughout the whole life cycle from product development,to production, warehousing and sales, and continuously collects evaluation fromconsumers in the after-sales stage and feeds back to the production departmentfor improvement to form a complete quality control closed loop. Quality control process Product improvement throughoutthe production process Building and developing its own brand has been the company's key strategy inrecent years. The improvement of its own brand is by no means an overnightthing, which needs to pass the long-term test of the market, and a long timeof brand precipitation. The company has established a relatively independentquality control system with a relatively independent organizational structure,continues to improve processes and product quality to help the rapiddevelopment of its own brands. After the product design is completed,the company ?rst produces a smallbatch of samples for customers tocon?rm, and any ideas and commentsfrom customers on the samples will befed back to the company internally forimprovement. During the internal testing processbefore the samples are deliveredto customers, the quality controlcenter will ?nd the problems andshortcomings of the samples andimprove them. After the sample stage isthe small batch trial production stage,through this stage of internal testingand feedback, we will con?rm whetherthe product mass production levelmeets the customer's requirements. When the small batch production ofthe product meets the customer'srequirements, the company willmass produce the product, and thequality control center will continue toimprove the product during the massproduction. At present, the companywill continuously promote and improve100 items every year. Every month, the company collectsonline the evaluation and feedbackfrom consumers in the process of usingthe product, and after collecting theseevaluations, we will analyze them toimprove the product. Quality Management System Continuous Improvement Process Product design stageProduct testing stageProduct production stageProduct after-sales stage Original Sample Assessment Parts InspectionFMEA/CP Prepared, FMEA/CP ?lesFormulate StandardNew Product AssessmentFormulate Inspection Procedures Factory EvaluationSample Assessment Supervise and Execute Tracking ProcessGoods AssessmentOn-site Inspection Incoming Quality Control Final Quality Control In Factory Inspection Customer Inspection Design Period   Vendor Choose    Production Phase     Inspection Control      Packaging and Shipment Environmental, Social and Governance Report 2020 Excellent Quality />1w SCAR project with customers, and the self-developed product won THE HOME DEPOTannual innovation product award CaseIn order to continuously improve product quality, the company cooperated with customers in theSCAR project to analyze and improve the product production process through defective sampleanalysis, design review improvement, component key dimension veri?cation, production lineimprovement, component improvement, and quality inspection improvement, thereby furtherimproving the production line yield rate, reducing the product return rate, and improving theproduct customer score.The company made signi?cant improvements to HUSKY quick-change PVC pipe cutter technologythrough returned sample analysis, root cause analysis of problems, process improvement, andcustomer score analysis, resulting in a reduction in the product internal defect rate from 4% to 2%and an increase in customer score from 3.4 to 4.5.HUSKY quick-change PVC pipe cutter technology introduces the blade quick-change conceptto PVC pipe cutters for the ?rst time. This self-developed core technology has applied forinvention patents in China, the United States, Canada, the European Union and other countriesand regions, and in October 2020, it was awarded the annual innovation product by THE HOMEDEPOT, a Fortune 500 company, fully re?ecting the company's technological innovation inproduct development.Product innovation not only ensures that the company can grasp market opportunities andrespond to market demand quickly, but also provides a guarantee for the improvement of thecompany's comprehensive strength. Some of International and industry standards thatthe company has participated in developing Quality control/assessment failure Enter into OA process Evaluate and assign tasks Analyze causes and develop countermeasuresCoaching/implementation of improvement measuresVeri?cation of improvement e?ect Summarize/extend application ACPDA：DisposalC：Inspection D：ImplementationP：Plan ACD ACPD ACPD  Participation in standards development ParticipationNo.Standard No.Standard Name QB/T 2212.1-2011 QB/T 2094.6-2015 QB/T1518-2018 QB/T 2289.6-2012 QB/T 1108-2015 QB/T 1736-2018 ISO 21982-2020 QB/T 2564.1-2012 QB/T2083-2017 QB/T 4207-2011 GB/T 10635-2013 QB/T 4944-2016 QB/T5373-2019 general technical conditions forconstruction tools (masonry class) woodworking saws clampback saws electric welding plierstechnical conditions gardening tools hand saws hacksaw frame woodworking drill ratchet wrench screw toolsnaming and terminology ?ush putty knife one-slot screw spinningtool head general technical conditionsfor screw spinners universal cable cutter F-type woodworking ?rst drafter ?rst drafter ?rst drafter main drafter main drafter main drafter participate in drafting ?rst drafter ?rst drafter main drafter main drafter main drafter main drafter ZDZero DefectContinuous Improvement Process HUSKY quick-change PVC pipe cutter wins THEHOME DEPOT annual innovation product award Environmental, Social and Governance Report 2020 The company's product inspection speci?cations all comply with international and domestic standards, customer requirements and internal productdevelopment technical standard requirements. Among them, QA Quality Assurance Department, the 2nd level department of Quality Control Center,as the ?rst drafter, has participated in the formulation of many international, industry and group standards, promoting the establishment of the bestorder in the industry and providing the necessary basis for the development of the industry. Excellent Quality />1w Focus on R&DGreatStar Industrial continues to increase independent R&D investment, increaseR&D innovation, improve the scienti?c and technological innovation system, improvethe e?ciency of product development, promote high-quality development ofenterprises, and help to upgrade the industry. The company encourages its employees to carry out product innovation and pinpointcustomer needs in order to form new sales growth points and achieve the purposeof market expansion. In order to further encourage R&D technology innovation andstimulate the innovation potential of R&D sta?, the company has formulated the"R&D Innovation Incentive System" as a way to improve the competitiveness of theenterprise and promote the long-term development of the enterprise. At the endof each year, the company also conducts innovation evaluation for the R&D sta?,and the innovative products of the R&D sta? are rated and rewarded through acomprehensive consideration of their innovation e?orts and the sales brought by theR&D products.At present, the company's R&D department mainly includes hand tool developmentdepartment, power tool development department, product modeling department,mold center, machining center, product rapid forming center, testing and experimentcenter, etc. The company also cooperates with Zhejiang University and otheruniversities and scienti?c research institutes for research, using various resourcesfrom universities and scienti?c research institutes to solve various problems forenterprises, so that we can keep up with the times, adopt new materials andtechnologies in time and seize the opportunity in innovation. Product R&D System MarketResearch ProductDesign  productTesting SampleSales Customer Order MassProduction QualityInspectionand Testing Shipping Establishing a central laboratory to improve the eIciency of product testingCaseIn order to ensure e?ective product inspection and testing, the company hasestablished the leading product testing laboratory in China, with professionalcerti?cation engineers and testing engineers, equipped with world advanced analysisand testing equipment such as Shimadzu from Japan, THERMO from Switzerland,PERKINELMER from the United States, etc., which provides an important guaranteefor the implementation of ROHS and PAHs environmental protection testingrequirements, among which the DC electric tools have passed the German "FFUpracticality simulation test".The company's central laboratory is the ?rst CNAS-accredited enterprise centrallaboratory in the domestic hand tool industry (see CNAS website for details ofthe scope of accreditation), and the e?ciency of reports issued by third-partylaboratories is equivalent. All products exported by the company are required toproduce inspection reports, and before the establishment of the central laboratory,these inspection reports were originally issued by third-party international brandlaboratories. After the establishment of the central laboratory, as the company'sproducts have reliable guarantee in terms of application, safety, e?ciency, energysaving and environmental protection, customers recognize and accept the testreports issued by the company's central laboratory out of trust in the quality of thecompany's products. Physical-Mechanical Laboratory Power Tool/Lamp Laboratory Chemical Analysis LaboratoryDurable Life Test RoomCompany's central laboratory received CNAS accreditation ProductDevelopmentProcess Environmental, Social and Governance Report 2020 Excellent Quality />1w The company has a senior professional tool R&D team, which is always committed to newproduct development and innovation, upholds the concept of details determine success orfailure, actively develops new technologies, optimizes the production process of products,constantly improves the functionality and added value of products, and constantly improves thecompetitiveness of the company. Product R&D Achievements In 2020, the company invested thousandyuan New products designed 245,372.1 1,629 GreatStar Industrial was awarded as 4High-tech Enterprise4 GreatStar5s screwdriver invention patent won China Patent Award Case Case In March 2020, GreatStar Industrial was awarded the certi?cate of "High-tech Enterprise"issued by the Department of Science and Technology of Zhejiang Province, the Department ofFinance of Zhejiang Province and Zhejiang Provincial Taxation Bureau. The company relies closely on technological innovation to promote enterprise development,and has gradually developed into an intelligent equipment enterprise integrating R&D,production and sales of hand tools and intelligent products, with strong new productdevelopment capabilities, and has been awarded "National Intellectual Property DemonstrationEnterprise", "National Industrial Design Center", "Provincial Enterprise Technology Center","Provincial Enterprise Research Institute" and other titles. In July 2020, the State Intellectual PropertyO?ce and the World Intellectual PropertyOrganization announced the 21st ChinaPatent Award, and our company's inventionpatent "Screwdriver" won the China PatentExcellence Award.The company's "screwdriver" patent solvesthe problem that the e?ciency and torqueof existing screwdrivers cannot be balanced,and pioneeringly switches the speed increasefunction and torque increase functionthrough a latch switch. Consumers can switchbetween high speed rotation to improvee?ciency and increased torque to achievereliable tightening according to the actualneeds of work. This time, the company was recognizedas a high-tech enterprise, which is a majordevelopment result of the company's adherenceto science and technology as the leading forceand innovation as the driving force, and is also afull a?rmation of the national and governmentalinnovation ability and core competitiveness ofour company. The company was awarded the "High-techenterprise" certi?cate The company's invented screwdriver Customer serviceThe company adheres to the core concept of "customer ?rst, pursue of excellence, teamwork spirit, innovation for mutualbene?t", constantly optimizes the customer service system, improves after-sales service processes, strives to be a service-orientedmanufacturer, and provides customers with better services. The company regards customers as the core, while providing customers with innovative, high-quality products and serviceexperience, it also puts social responsibility through marketing activities, providing high-quality localized services from R&D,production, logistics, warehousing, and sales to the entire process , and strides forward on the road of high-quality development. E?ciently solve customers'new product needs.Relying on decades ofR&D accumulation andthe industry's top R&Dteam, as well as theincreasingly strong to Cbusiness, we proactivelylearn about marketchanges and proactivelyinform customers, helpingcustomers' products tolead the market trend Relying on the globalsupply chain system, thecompany is graduallyupgrading from Chinadelivery to Asia deliveryto better meet customerneeds; building a full rangeof quality control system,from the source of suppliersto the delivery of ?nishedproducts to customers, wealways adhere to productquality to protect the rightsand interests of customers We have built a perfectwarehousing and logisticssystem in the U.S. andare improving thewarehousing and logisticssystem in Europe, toprovide customers with aholistic service from thefactory to the customer'swarehouse or directly tothe customer's store. Local sales sta? in Europeand the United Statesprovide customers witha full range of localservices, help customerscarry out promotionalactivities, pay attention tocustomer inventory, timelyreplenishment of customerinventory, in order to meeta variety of di?erent needsand protect the rights andinterests of customers The whole process of customer service R&D end Production end Warehousingand logisticsend Sales end Environmental, Social and Governance Report 2020 Excellent Quality 2930/>1w杭州巨星科技股份有限公司 2020年度ESG报告 The company not only provides exclusive customer service hotlines for ODM brands and private brands, but also collectscustomers' opinions regularly through questionnaires to continuously strengthen communication with customers and deal withtheir opinions in a timely manner. The company establishes a perfect after-sales service process, which makes the after-salesservice more standardized and normative and ensures the quality of the company's after-sales service. The weekly business o?ce will send the customer opinion collection form to the sales managerfor the sales manager to report the problem.Send the customer questionnaire in the form of a con?dential letter every year for the customerto give feedback on the problem.Require the sales sta? to give the corresponding solution and reply to any problem raised by thecustomer. The company's database uses Ali cloud ibs database, and the database is backed up regularlyto prevent data loss; the company has built a private network on Ali cloud, which can only beaccessed through the VPN deployed by the company, and cannot be accessed from outsideareas.The management rights of the database is in charge of the special database administrator, whowill give the developer the corresponding rights according to the business needs.The company monitors network data vulnerabilities in real time through Alian Knight; if a networkattack is found, Alian Knight will make automatic alerts. The company's internal system is connected to Ali's Taobao and Tmall platforms throughAli's Qimen interface, and Ali will control the data security; the customer data imported fromTaobao and Tmall platforms, the company's internal management system will also control thecustomer's cell phone number and other sensitive information to prevent information leakage.The company's OMS system that manages inventory, shipping, and other informationmust comply with Ali's security speci?cations when docking with Ali; for sensitive customerinformation, the OMS system only allows a small amount of viewing, and does not allow large-scale data export. Communicate customers' opinions to business departments through monthly summarymeetings.Summarize and publicize negative customer evaluations in the form of PPT throughquarterly summary meetings, including analysis of the reasons for negative evaluations andaccountability, to ensure that feedback implementation is in place and that no similar badfeedback or customer experience occurs subsequently. Customer Opinion Feedback Mechanism After-sales service process Customer opinion collection Data security measures Customer privacy protection measures Customer opinion feedback Listen tocustomerfeedbackcarefully Subsequentfollow-upservice Fullycommunicatewith customers Ask customers'opinionsCollect andorganizeafter-salesproblems Proposesolutions After-sales service process Data SecurityIn order to strengthen the company's data securitymanagement and maintain the normal operation of thenetwork, the company has formulated the "ComputerNetwork Information Security Management System" to ensurethe security of computer data as well as the stability of theequipment. The company adopts strict data security measuresand customer privacy protection measures, and conductsnetwork information security training for relevant personnelevery year to continuously improve employees' awareness ofdata security and e?ectively protect customer privacy. Company network information security training Environmental, Social and Governance Report 2020 Excellent Quality 3132/>1w杭州巨星科技股份有限公司 2020年度ESG报告 Intellectual propertyWhile continuously increasing R&D investment and intensifying innovation, thecompany also pays great attention to the protection of intellectual property rights.The company has established an intellectual property management system, adopteda number of intellectual property protection measures, continuously strengthenedthe protection of intellectual property rights, and safeguarded the company'slegitimate rights and interests.The company established an intellectual property management system in 2012 andpassed the intellectual property management system certi?cation in November 2014,becoming the ?rst batch of enterprises in Zhejiang Province to pass the intellectualproperty management certi?cation. In 2016, the company was awarded the title of"National Intellectual Property Demonstration Enterprise" and passed the reviewin 2019. At present, the company's intellectual property management system hasbeen revised and reviewed twice, and will be recerti?ed for the intellectual propertymanagement system in 2020.Certi?cate of Intellectual PropertyManagement System Certi?cation The company has applied for annually At the end of 2020 patentspatents Valid patentsIt has currently US patents Invention patent applicationsInvention patent authorizations EU patentsPCT applications + 1,5422,758 530191 98111 Intellectual property protection measures The company hasestablished a completemarket-oriented intellectualproperty managementsystem to ensure that thereis no infringement of theintellectual property rights ofothers in the entire processfrom R&D to product sales. Atthe same time, the companyapplies for patents for its owninnovations. Before the R&D projectis established, we usethe commercial patentdatabase purchasedby the company tosearch and analyze,and give correspondingintellectual propertyrecommendations to avoidinfringement of existingpatents; after the designof the new product iscompleted, a patent searchand analysis will be carriedout again for the newdesign, and the conclusionof the intellectual propertyanalysis will be given toguide the follow-up work;before the product is sold,the patent search andanalysis will be carriedout again for the targetmarket of the sale, and the?nal result of intellectualproperty analysis will begiven. Patent applications aremade for new ideasgenerated by the companyin the process of newproduct design, forming aspecial patent protectionfor the company to ensurethat patent applicationsare extended to whereverthe products are sold. Every year, the companyholds intellectualproperty training for sales,purchasing and R&D sta?,so that all sta? closelyrelated to intellectualproperty can initiallyrespond to any problemsin their daily work andpromptly report thesituation to the intellectualproperty departmentfor further processing byprofessional sta?. The company hasestablished an intellectualproperty emergency plan,and it will promptly arrangeprofessionals to respondto complaints, and hire aprofessional intellectualproperty company to assistin handling. The companyhas a number of long-termcooperative intellectualproperty companies at homeand abroad, providing legalservices for the company tosolve intellectual propertyissues. If an infringer is found inthe market, the sales sta? willpromptly report the relevantinformation to the intellectualproperty department. Andthe intellectual propertydepartment will immediatelytake a series of tasks suchas issuing company letters,issuing lawyers' letters,notarizing evidence, courtprosecutions, etc., to protectthe company's intellectualproperty. The company'sintellectual propertystrategy is to focus on themarket, and there willbe corresponding patentapplications for productsthat are well sold in themarket, so as to protectthe company's intellectualachievements andprovide customers withcorresponding protection. When all the company'snew products arecommissioned forprocessing, the companyand the supplier will sign acon?dentiality agreementand an underwritingagreement containingintellectual property terms. The company'sprocurement contractsall contain intellectualproperty clauses to restrictsupplier behavior andprotect the company'sinterests. The intellectual propertydepartment has 3 full-time sta? and 2 part-timesta? to be fully responsiblefor the company'sintellectual property work;procurement, exportand other departmentsclosely related tointellectual property areequipped with employeeswho are familiar withintellectual propertylaws and regulationsand implementationmethods, cooperatingwith intellectual propertydepartment to completethe realization of thecompany's goals. The company trains newemployees on intellectualproperty rights to enhancetheir intellectual propertyawareness and make themrealize the importanceof intellectual propertywork to the company'sdevelopment. Whenencountering intellectualproperty-related issues atwork, after training, newemployees are able to dealwith these issues initially. Environmental, Social and Governance Report 2020 Excellent Quality 3334EHSvi杭州巨星科技股份有限公司 2020年度ESG报告 The number of work-related injuries and work-related fatalities are both Haining plant5s investment in equipmenttransformation for EHS management yuan 460,100 EHS Management GreatStar Industrial has established a completeEHS (Environment, Health, Safety) managementsystem to ensure that EHS related system conceptscan be implemented at the grassroots andmanagement levels. Through comprehensive EHSmanagement, the company actively ful?lls itsresponsibilities in environmental protection andoccupational health and safety.. 3536EHSvi杭州巨星科技股份有限公司 2020年度ESG报告 The company integrates environmental protection, safe production and corporate development, actively establishes anEHS management committee involving various business departments, and includes 6 employee representatives in the EHSmanagement committee to protect employees' rights to participate in occupational health and safety decision-making. In response to the national call for energy conservation and emission reduction, the company has formulated the "EnergyConservation and Emission Reduction Management System", "Energy Management Operation Guideline", "Greenhouse GasManagement Regulations" and other systems to integrate the concept of environmental protection into the company's dailyproduction and operation. At the same time, the company actively designs green products, builds green factories and promotesgreen o?ces to implement the concept of energy saving and low carbon by action. Green product design The company's R&D departmentis responsible for research anddevelopment of new technology andnew material application, so as toreduce material waste and save costs. Upgrade environmentalprotection technology We control the structure and usageof product design, and according tothe di?erent positioning of customerneeds, we reduce excessive design onthe basis of ensuring product functionand service life, and promote greenpackaging; we make considerationof product renovation and productrecycling after use by customers toreduce the impact of product disposalon the environment. Design consideration ofenvironmental factors Strict quality control of products toensure that plastic materials and oilsused in products meet the requirementsof laws and regulations of exportingcountries; control and testing of toxicand harmful substances for materialsused at di?erent stages to reducepollution of the environment; use ofeasily degradable materials to replacethe original materials to achieve thepurpose of environmental protection. Use of environmentally friendlyraw materials Green Products Management systemEnvironmental Protection Tenfold Power SectionSeiko Logistics DepartmentPackaging Finance Department EHS Management Committee DirectorDeputy Director Business Department Optimize product packaging to help environmental protectionCaseIn response to customers' concerns about green packaging, thecompany innovated and optimized product packaging, not only toachieve a more re?ned packaging and a better consumer experience,but also to avoid the use of adhesives through the structural designof one piece. In addition, the new packaging does not require a ?xedliner, which not only saves the use of display box materials, but alsomaximizes the number of boxes and improves the energy e?ciencyduring product transportation. The company takes environmental factors into fullconsideration at the product design and R&D stage, activelylaunches green products, continuously improves productenvironmental attributes, and continuously develops newenvironmental processes, thereby reducing material waste,environmental pollution and energy consumption. The Company has established comprehensive environmental management and occupational health andsafety management systems and procedures, including not only macro-level guiding policies, such as theEnvironmental Protection Policy, but also micro-level practical processes, such as the Hazard Identi?cation andRisk Assessment Control Procedures and Waste Management Control Procedures. The company has obtainedISO 14001 environmental management system certi?cation, and in 2020, the company applied for the extensionof the validity of the standardized safety production certi?cate, which has been approved by the relevantauthorities. The company was certi?ed as a Level3 enterprise for safety productionstandardization The company was awarded ISO 14001environmental management systemcerti?cation Environmental, Social and Governance Report 2020 EHS Management 3738EHSvi杭州巨星科技股份有限公司 2020年度ESG报告 Active upgrading of equipment and strict control of environmental pollution Using electric forklifts to reduce exhaust pollution Case Case In response to the national concern and requirements for environmental protection,GreatStar Industrial actively upgrades equipment and renovates facilities to strictlycontrol environmental pollution to the minimum. In 2020, for exhaust gas, thecompany installed VOC (UV photolysis + activated carbon) treatment equipment,which has an organic exhaust gas adsorption rate of 99%, and the exhaust gas isdischarged at a height of 15 meters after adsorption, e?ectively reducing exhaustgas pollution. For wastewater, the company operates a wastewater treatmentsystem in the factory, which has a wastewater treatment capacity of 20 tons/day,and the wastewater treatment e?ect reaches the national standard level 3. In order to help the country ?ght a tough battle for pollutionprevention, the company has formulated scienti?c wastemanagement control procedures, chemical managementprocedures and other related regulations to strictly controlpollution, minimize the impact of its business operations onthe environment, and realize green production. In accordance with the principles of low-carbon energyand clean production, the company promotes the greentransformation and upgrading of the factory and realizes greendevelopment by building rooftop solar energy, using electricforklifts and other initiatives.  Green Production Green Plant The domestic sewage of theenterprise is pretreated, and theproduction wastewater is treatedby the self-built sewage treatmentstation and meets the requirementsof the "Integrated WastewaterDischarge Standard", then enters themunicipal sewage pipeline. Waste water The paint room is equipped with VOC treatment equipment, which neutralizes the paintsmell through UV photolysis + activated carbon, and regularly replaces the activatedcarbon.Waste gas Implement full process monitoringand compliant disposal of solidwaste, control and reduce thegeneration and emission of solidwaste at source, and entrust quali?edunits to carry out disposal work; buildhazardous chemical warehousesfor hazardous waste, and dispose ofthem in accordance with nationallegal requirements and stricter thanlocal area limits. Hazardous chemicals warehouses shall be built for hazardous wastes, and the disposal shall meet the requirementsof national laws and be stricter than local limits Solid waste 4Three Wastes4 Disposal Focusing on energy saving and emission reduction, andcarrying out facility upgrades Case Promote Green O?ce Advocate green lighting, water andelectricity saving, paperless o?ce,encourage paper reuse and travel bypublic transportation, and enhance theawareness of energy conservation andenvironmental protection of companyemployees Advocate environmentalprotection concepts Continuously improve OA system and?nancial software, promote electronicapproval and realize paperlesscollaborative o?ce; upgrade video andtelephone conference systems to reduceo?cial business travel Application of low-carbon system Purchase printers and copiers that canprint on both sides, and encourageemployees to print and copy on bothsides; property management personnelcheck regularly every day, and turno? lights, water dispensers and otherelectrical equipment in unmanned o?ceareas in time Administrativelogistics support The company actively promotes the popularization ofgreen o?ce awareness throughout the company aroundthe idea of advocacy, system upgrades and coordinatedsupport of various departments.  Green OIce Hazardous waste Environmental, Social and Governance Report 2020 In order to implement the "Thirteenth Five-Year Plan forRenewable Energy Development" proposed by the NationalDevelopment and Reform Commission and help the countryestablish a clean and low-carbon modern energy system,GreatStar Industrial actively promotes the construction of 4.3MW rooftop photovoltaic power generation projects. The commissioning of the project has increased the company'sclean energy utilization rate while reducing carbonemissions. In order to solve the problem of exhaust pollution caused bytraditional forklifts, in 2020, GreatStar Industrial promotesthe use of electric forklifts. Compared with traditionalforklifts, electric forklifts not only reduce the use of non-renewable energy, but also e?ectively improve the air qualityof warehouses. EHS Management 3940EHSvi杭州巨星科技股份有限公司 2020年度ESG报告 Occupational HealthOccupational health and safety is not only closely related tothe well-being of employees, but also vital to the company'sattraction and retention of talents, e?cient managementof human resources, and smooth business development. In2020, the company actively improved the "Employee Healthand Safety Management Procedures" and other systems toensure the safety of all employees by improving workplacesafety and employees' safety protection capabilities. The robotic arm device of the grinding link Occupational health action system The general manager's KPI assessment index is linked to thework injury index of the responsible plant The person in charge must publicly explain the situation of thework injury and issue a related report Report immediately after a work-related injury, and the companywill be responsible for the medical expenses of the injuredworkers and provide nutrition subsidies, and wages will be paidas usual during the treatment period Organize safety training, conducting regular ?re drills andelevator escape drills Provide workers with protective equipment such as protectiveshoes, masks, and earplugs for free Clearing supervision responsibilities Standardizing the handling of accidents Preventing safety risks Creating a safe environment The plant manager clearly supervises the workshop director,the workshop director supervises the workshop shift manager,and the shift manager is responsible for supervising theissuance and wearing of labor protection equipment Oganize medical examinations for workers every two yearsand conducte inspections for occupational diseases, includingnoise and powder, for workers in special jobs Use robotic arms instead of labor to engage in high-risk andhigh-pollution jobs; install exhaust emission equipment toreduce the occurrence of workers' lung diseases Renovate the workplace to reduce noise damageCaseIn order to reduce the impact of noise pollution on the health ofworkers, in 2020, GreatStar Industrial used rock wool ?re-proof andsound-proof materials for closed management in areas with loudnoises, and distributed earplugs to all workers, adding a secondprotective barrier to protect hearing, e?ectively reducing the risk ofhealth damage to workers. Upgrade automation to reduce work injury rate Carrying out Gre drills to improve employees5 emergency response capabilities Case Case In order to reduce the rate of work-related injuries, GreatStarIndustrial invested 100 million yuan in the transformation ofautomatic warehouses and used unmanned vehicles to intelligentlycon?gure storage positions. The warehouse can store 30,000 pallets,with a throughput of 300 pallets per hour, which increases theoriginal e?ciency by 4 times and the storage capacity by 3-4 times. In2020, the company applied the automated heat treatment process toe?ectively control product quality and improve the performance ofexisting products, while increasing the utilization rate of automatedequipment and reducing the incidence of accidents. In order to improve employees' awareness of ?re safety and enhancethe emergency evacuation capabilities required to respond tosudden ?res and other disasters, the company launched a ?re escapedrill on May 21, 2020. The exercise process includes explanationsof precautions, activation of emergency plans, orderly organizationof evacuation, explanations on the use of ?re-?ghting appliances,?re-?ghting exercises, etc., so as to strengthen employees' safetyawareness and enhance their emergency escape capabilities. Improve employee safety protection capabilities Ensure the safety of the workplace The company is committed to improving employees' safety awareness and protection capabilities. From 2019 to 2021, thecompany headquarters and Haining plant conducted 12 targeted ?re drills in two di?erent environments, day and night, toimprove the ability of employees to respond to emergencies. The company regards the safety of the workplace as the basis for protecting the occupational health and safety of employees. Inorder to protect the health of employees, the company actively optimizes the working environment and reduces the rate of workerinjuries and accidents. Environmental, Social and Governance Report 2020 EHS Management 4142I?‘0B¤杭州巨星科技股份有限公司 2020年度ESG报告 Number of employees people Number of people covered by training person-times 7,376 5,097 Ful?llment of Employees The company attaches great importance to the trainingof employees, takes talent strategy as the focus ofcorporate development, and provides employees with fairdevelopment opportunities and diversi?ed education andtraining opportunities. The company also uses employeesatisfaction surveys, employee communication and othermethods to understand employees' demands, care foremployees' lives, and truly make employees feel thecompany's warmth and care. 4344I?‘0B¤杭州巨星科技股份有限公司 2020年度ESG报告 Compliance EmploymentThe company strictly abides by the "Labor Law", "Women's Rights Protection Law" and other relevant laws and regulations, andpays employees' pension, medical care, unemployment, work-related injury, maternity and other social insurances on time.The company conducts employee compensation management in strict accordance with the relevant provisions of the NationalLabor Contract Law. The average salary of employees in 2020 is higher than the provincial average salary standard of ZhejiangProvince in 2020. The employees' normal and weekend overtime wages are calculated in full according to regulations, and acomprehensive working hour system is implemented for some positions. Sta? salary structure Front-line positions: According to the overtime pay system, hourly wages and overtimewages are calculated in accordance with the national labor law and policiesManagement positions: Calculated based on the combination of ?xed salary andperformance salary Employeewelfare system Cover all aspects of clothing, food, housing and transportation, provide free dormitoriesor rental subsidies for related employee groups, and pay various social insurances foremployees on time, so that employees can live and work in peace and contentmentPay attention to the health management of employees, arrange annual physicalexaminations for employees every year, and provide green channels for employees to seekmedical treatmentCare for employees’ families, help employees’ children to solve school problems, ande?ectively solve employees’ worries Humanistic Care The Company always respects and protects the personal rights of employees. In order to better serve employees and enhance theirsense of belonging and corporate cohesion, the Company conducts employee satisfaction surveys on an annual basis. The surveytakes various forms such as questionnaire ?lling, online scoring, and seminars, and aims to collect and consider employees’recti?cation opinions and suggestions on food, housing, and transportation. Establish Adequate Communication Channels In addition to conducting employee satisfaction surveys, the Company has also established a variety of employee communicationchannels to understand employee needs, listen to their opinions, improve employee enthusiasm and creativity, and enhance thecore competitiveness of the Company, laying a foundation for building a harmonious enterprise.All departments set upcentral liaison o?cers andadministrators to be responsiblefor understanding businesscommunication issues at work Correspondents are set upin each center to report oncompany events, activities, teambuilding activities or importantnews; correspondents selectoutstanding employees topublish related articles in the“Monthly One Star” column,and publish them through theCompany’s monthly magazine,newspapers and other channels Hold a symposium with newemployees who have been on thejob for a week to understand theintegration of new employees,and feed back opinions andsuggestions from new employeesto department leaders forprocessing in a timely manner Build A Warm Working Environment On the basis of understanding the needs of employees, the Company continues to improve the lives of employees, and strivesto allow employees to work in a good environment, improve their enthusiasm for work, and ensure the healthy and stabledevelopment of the Company. The Company’s ?ve-star restaurant provides employees with three sumptuous meals in themorning, afternoon and evening, and provides monthly subsidies for employees’ working meals. Mother and baby room is set upto provide convenience for femaleemployees during breastfeedingperiod, and the “GreatStar ServiceStation” is set up to provideemployees with daily needs. On the anniversary and birthday ofthe employees, they will receive agratitude email from the Company,take the initiative to care for themand help them get to know andfamiliarize with the Company assoon as possible, so that the newemployees can feel the warmhumanized service. Mailing holiday condolences forthe families of employees basedabroad to thank the support andunderstanding of employees’families. by gender Unit（person）Unit（person） Unit（person） by degree by employee professionalcomposition category 4,795 5,133 1,011 2,581 100%100% 1,448 4,584 male social insurance coverage rate college education salesperson technical secondaryschool and below technical sta??nancial o?ceradministrationsta? female labor contract signing rate bachelor degree andabove production sta? Environmental, Social and Governance Report 2020 Achievement of Employees 4546I?‘0B¤杭州巨星科技股份有限公司 2020年度ESG报告 Hold Rich Cultural and Sports ActivitiesThe Company also organizes various forms of activities and competitions as a way to enhance the team spirit and sense ofbelonging of employees and to create a workplace atmosphere of happy work and happy life. Establishment of clubs or associationssuch as soccer, tennis, mountain-climbing,photography, skiing, book club, etc. The mountain-climbing club summited Zhejiang’s ?rst peak -Baisanzu Huangmaojian Set up sta? home, reading room and gymnasium,and organize the GreatStar Culture Festival, theGreatStar Trail Walk and the Fun Games every year Organize diversi?ed sta? team building activities,such as team building activities in Hubei ThreeGorges, Changbai Mountain, Moganshan, etc. Award ceremonies for employees who haveworked continuously for ten or twenty years withgold and silver medals to thank them for theirhard work; organize special farewell ceremoniesfor retired employees to thank them for theirsilent dedication Employee DevelopmentThe Company insists on the talent concept of “people-oriented”, establishes a mechanism of four-level talent ladder, fair andscienti?c 361 performance evaluation mechanism, PM dual-channel talent development mechanism and motivating salarydistribution mechanism, establishes a mechanism of sta? growth and enterprise development, clari?es the direction of sta?development, and builds a long-term win-win interest community between the enterprise and the employees. Career development channel Employee Career Development Path The Company conducts annual and semi-annual appraisal of employee performance in January and July each year.It combines corporate values with employee performance to encourage employees to actively strive for performanceimprovement, and the assessment results are ranked in 361 parallel job performance results within the department. After new employees are hired, the Company will determine the career development direction of employees,that is, position them as management (M) talents or professional (P) talents. After that, the Company will rank theemployees and position them as junior talents, professional talents, backbone talents or senior talents. There is a parallelrelationship between management positions and professional positions. P1-3 (junior positions) can be promotednaturally, P4 and above need to be evaluated based on the annual 361 evaluation results; positions below supervisorsneed to be reviewed by the human resources department, and PM positions need to be reviewed by the committee, andmanagers, directors and important technical personnel need to be evaluated and countersigned by the PM managementcommittee and president. 361 performance evaluation mechanism PM rank promotion mechanism Tug-of-war of the Company’s cultural festival Award ceremony for employees Organize exciting group building activities Environmental, Social and Governance Report 2020 Achievement of Employees 4748I?‘0B¤杭州巨星科技股份有限公司 2020年度ESG报告 Education and TrainingThe Company has established a mature talent echelon training system, and regularly organizes basic skills training for eachposition and comprehensive quality training for management personnel, so that employees can e?ectively improve their overallprofessionalism on the basis of doing their own work. At the same time, we regularly carry out the training of director-level andmanager-level reserve talents to continuously deliver high-quality talents for the Company’s development, so as to realize thecommon growth of employees and the Company, and build a harmonious and stable labor-management relationship. Provide DiverseStaF Training  The Company established theGreatStar Academy and internaltrainers team to actively carry outemployee training Invite external lecturers to teach inthe Company, or organize employeesto go to external institutions fortraining The Company organizes professional skills training The Company organizes professional skills training  GreatStar AcademyIn order to implement the talent training principle of "internal trainingas the main focus, and external introduction as a supplement", theCompany established the Academy in 2019, which is responsiblefor internal training work. The academy is composed of a team ofprofessional internal trainers, and through the four talent trainingprograms of "Star, Moon, Eagle and Integration", it focuses on talentladder building, management quality improvement, professionalskills improvement and team building, and provides multi-leveland diversi?ed training for employees to lay the foundation for theCompany's sustainable development. TrainingProgram ofGreatStarAcademy Carry out training on company structure, corporate culture,business introduction, management system, IT softwareoperation, etc. for new employees Carry out leadership training programs for managers and reservecadres Regularly carry out training on product knowledge, businessprocess, quality awareness, o?ce software, etc. for businessdepartment personnelOrganize multiple open classes every month and irregularly organizespecial training in English interest classes, PS software, etc.Academy Training ModelIntegration ProgramIn order to help new employees betterintegrate into the working environment,the Company carries out a two-day"Integration Program" training for newemployees every month. In order to improve the cohesion of theemployee team and help employeesunderstand the corporate culture indepth, the Company periodically carriesout training in "Integration TrainingCamp" according to the needs of thedepartment. Star ProgramSirius Program: It aims to cultivatedirector-level reserve cadres and providea solid reserve force for the Company'stalent gradient construction.Venus Program: It aims to train reservecadres at the manager level. At the endof 2020, the program has carried outtwo phases, each of which lasted for 10months.w3xSpecial Open Class The Company organizes 3-4 open classes every month. In 2020, the Companycarried out a total of 18 public classes, which was taught by the internal teachersof GreatStar Academy.  Carrying out special training camps to improve the cohesion of the staF teamCaseStarting in October 2017, the Company opened the "Special Training Camp forIntegration" and organized 7 sessions of team training for one year for employees,including: 1617 Special Training Camp for College Students and Special TrainingCamp for Foreign Procurement Elites, R&D center innovation and mutual win specialtraining camp, quality control center excellence training camp, Toolmall teamactivation special training camp, ?nancial center integration and enterprising specialtraining camp, functional department team collaboration special training camp.The development of Special Training Camp for Integration strengthened thecohesion of the departments and also allowed employees to understand the essenceof corporate culture in the activities.The excellent trainer training Each department conducts phasedinternal sharing meetings and seminars,and senior employees share experience;conduct researches on the trainingneeds of each department, and form thesecond annual training plan Encourage employees to participatein special training such as ?nancialtraining, board secretary training,skills training, etc.; assist employeesto conduct job title evaluation everyyearExternal training Internal trainingSpecial training Training sessions people people Participating in the training Training hours in total 5,097 14,397 Selected outstanding talents Environmental, Social and Governance Report 2020 Achievement of Employees 4950MJ[0?杭州巨星科技股份有限公司 2020年度ESG报告 Equivalent amount of materials donated to customersduring the COVID-19 ten thousand yuan Develop Hand in Hand GreatStar actively ful?lls its responsibilities andobligations as a corporate citizen, works withstakeholders to promote community development,participates in community construction, continuesto build harmonious relationships with stakeholders,and continuously contributes to society. 5152MJ[0?杭州巨星科技股份有限公司 2020年度ESG报告 Win-win Cooperation The Company is committed to the construction of global supply chain management, establishing good and win-win partnershipswith thousands of suppliers around the world, building a global supply chain management system with cost advantages,sustainable development, high e?ciency and safety with China as the core, to ensure that the Company responds quickly tocustomer needs and provides excellent services.During the COVID-19, the Company made every e?ort to help domestic suppliers and internal factories to solve the shortage ofmasks; the supplier was exempted from compensation requirements for delayed delivery. The Company upholds the concept of openness, transparency and win-win cooperation with suppliers, and grows together withthem. The Company has formulated the "Supplier Management System" and continuously improved the procurement systemand process, and in addition to the merits of the products and services provided by suppliers, the business ethics, environmentalimpact, labor rights, occupational health and safety indicators of suppliers are incorporated into the management system; signedthe "Supplier Quality Target Agreement" with quali?ed suppliers to strictly control product quality and product safety, to ensurethat the products and initiatives of suppliers to meet the Company's requirements.In addition, the Company has established a fair and impartial supplier evaluation system and formulated the "Procedures forEvaluating the Social Responsibility of Suppliers and Subcontractors". At the same time, price control is strictly implemented, andfor medium and large projects with relatively high amounts, the procurement department opens the bidding system and links alldepartments to jointly verify prices. Access assessment Quality assessmentQuality control Grading management RectiGcation and improvement Elimination and withdrawal On-site assessment of supplier factories, including dimensions such as product qualitysystem, anti-terrorism (mainly for U.S. customers), workers' labor rights and interests (such as?ve insurances and one pension, temporary labor policy, prohibition of child labor, etc.), laborprotection measures, environmental impact such as environmental assessment certi?cate,pollutant discharge, ?re prevention and premises safety, ?nancial status, tax rating, businessscope on business license, etc. Quality control center has a laboratory totest the heavy metal content of purchasedproducts and conduct random checks fromtime to time to ensure that all indicators ofproducts are quali?ed; quality control centerand purchasing department are responsiblefor the quali?cation rate (96% to 98%) andon-time delivery of products respectively The procurement department, QA qualityinspection department and QC qualityinspection department will formulate thefactory inspection standards accordingto the requirements of the quality controlcenter, and issue quality assessment reportsfor suppliers based on the factory siteassessment The QA department of the Company,in cooperation with the procurementdepartment, will help the supplier factoriesto improve and rectify the quality problemsthat often occur; the quality controlcenter will go deeper into the downstreamfactories and secondary suppliers to carryout investigation and evaluation every year,giving priority to the bottom 50 suppliers toprovide recti?cation advice According to the quality assessmentof products and the assessment ofenvironmental protection, employeeresponsibility and social responsibility,suppliers are classi?ed into three grades ofA/C/E; quali?ed suppliers will be includedin the Company's OA system The supplier who has entered the inventory butstill does not meet the standard after recti?cation iseliminated The Company insists on transparent procurement, always upholds the cooperationpurpose of integrity and transparency in the process of external cooperation, andresolutely opposes any bribery and other illegal and irregular behavior. At thesame time, the Company is fully online in the ERP system for procurement, productmanagement and other functions, and through the control of authority and approvalprocess, each responsibility is implemented to the person and speci?c to the post.The Company signs the "Supplier Integrity Commitment" with each new supplier, inwhich detailed constraints are imposed on commercial bribery and correspondingpenalty mechanisms are set up for violations of relevant regulations. The Companyencourages all employees and suppliers to strictly supervise and vigorously reportviolations of the Company's regulations, and opens up various complaint andreporting channels such as project telephone, public email, fax, etc. If the situationis con?rmed to be serious after investigation, the supplier quali?cation will becancelled. Supplier Management Transparent Procurement SupplierManagementMechanism Environmental, Social and Governance Report 2020 Develop Hand in Hand 5354MJ[0?杭州巨星科技股份有限公司 2020年度ESG报告 Activate the volunteer mechanism toattract a large number of enthusiasticemployees to join the Company'sdaily epidemic prevention andcontrol actions, to ensure that theCompany achieves zero quarantineand zero infection Normalized preventionand control Fighting the Epidemic TogetherCommunity CharityAt the beginning of 2020, the sudden outbreak of COVID-19 epidemic touched the hearts of Chinese people and the internationalcommunity. In order to help the society to smoothly tide over the di?culties in the special period, the Company set up anemergency leading group for epidemic prevention and control, dispatched resources to contribute, insisted on not stoppingproduction and not reducing production, and did a good job of both epidemic prevention and control and resuming work andproduction. The Company insists on giving back to the society to obtain wealth, and is committed to becoming an enterprise with a high senseof social responsibility. In 2020, the sudden outbreak of the COVID-19 epidemic brought unexpected impact to the production and operation of theCompany and the development of the industry. In order to deal with the epidemic e?ectively and guard the health of employees,the Company reacted quickly and set up an epidemic prevention and control leading group headed by Mr. Qiu Jianping, thechairman of the board, to coordinate and plan all epidemic prevention and management work. In 2007, GreatStar established the "GreatStar Foundation" and formulated the "Articles of the GreatStar Foundation" to regulate theoperation process of the foundation. It provide scertain ?nancial assistance to employees of the Company and its subsidiaries whohave worked for more than 12 months and who have su?ered great di?culties for themselves or their family members, such assu?ering from major illnesses, and ?nancial di?culties due to family ?nancial di?culties. Up to now, the foundation has provided 2.163 million yuan in assistance to 77 employees of the Company. Among them, it has donated 100,000 yuan to the Zhejiang Disabled Welfare Foundation. The standardized operation of the foundation and the Company's contribution to social welfarehave demonstrated the Company's image of actively ful?lling its social responsibilities, and has been recognized by all sectors ofsociety.The Company foundation attaches great importance to the support and assistance of education. With its own advantages, theCompany has become the ?rst Zhejiang University MBA practice education base, and has held the "GreatStar Cup" CreativeHangzhou Industrial Design Competition with well-known domestic colleges and universities for ?ve consecutive years, activelypromoting the healthy development and progress of educational public welfare undertakings.Call for employees to work at homethrough network, and formulate inadvance guidelines for returning towork, workstation setting, meetings,meals, shuttles, accommodation andother work after resuming on-siteo?ce For Hubei employees who cannotresume work on time due toepidemic prevention and control, wearrange for them to work at homeand give them material care andspiritual con?dence. The Company pays close attention to the development of the global COVID-19 epidemic, and strives to provide support andassistance within its capacity for the prevention and control of the epidemic.  ScientiGc Resumption of Work and Production Response Actions to the COVID-19 Epidemic Public Welfare Management Educational Support  Love Helps Fight the Epidemic Inheriting care and helping Lin5an Primary School in pairs for eight consecutive yearsCase Aid overseas to help resume work and productionCaseAs the ?rst provincial key foreign trade enterprise in Jianggan District to resume work and production, the Company gave full playto its advantages in global resource scheduling and launched a large-scale donation activity of "GreatStar Is with You" to donateWORKPRO masks and PREXISO temperature guns to overseas customers in which the anti-epidemic materials was worth morethan 5 million yuan. At the same time, the Company actively looks for epidemic prevention materials and resources, and hascumulatively sold more than 150 million US dollars of epidemic prevention materials to overseas customers, helping the globalepidemic prevention and control and the orderly recovery of the global manufacturing industry.  Continuous public welfare, and full eFort to Gght the epidemicCase Since the COVID-19 epidemic, the Company has sent masks to the front-line sanitation workers, tra?c police, public securitypersonnel, and migrant workers in Hangzhou to express its condolences. Employees use their rest time to actively participatein anti-epidemic volunteer activities in neighborhoods and communities, and assist communities in personnel investigation,temperature measurement, and standing guard. The Company's e-commerce platform "Toolmall.com" also actively participatesin the material dispatching operation, ensuring that masks, protective clothing and other anti-epidemic supplies are delivered tofront-line medical institutions and front-line medical sta? in a timely manner, demonstrating the role of leading manufacturingenterprises in Hangzhou , and actively ful?lling social responsibilities. EIcient and rapidresponse Caring for specialemployees Purchase epidemic preventionmaterials such as masks anddisinfectant solution throughmultiple channels, and use them foremployee protection and return towork reserves as needed; activelycontact the relevant governmentsand arrange for employees to takegovernment-organized high-speedtrains or buses Strictly guard the safety of returning to work Environmental, Social and Governance Report 2020 Since 2012, GreatStar has carried out assistance activities toelementary schools in Lin'an City on Children's Day every year, and ithas lasted for 8 years. The Company continues to improve the learningconditions and environment for teachers and students by sendingboxes of children's day gifts and school supplies to the children,as well as donating sports equipment, books and other items, andbrings hope to the children in the mountains. In 2020, even if a?ectedby the epidemic, the Company continued to create a better learningenvironment for school teachers and students, and contribute tosupporting the education of the next generation with practical supportin order to continue and pass on love and care for these children. Develop Hand in Hand 56杭州巨星科技股份有限公司 2020年度ESG报告55jwr?zc? Indicator Index GRI 102;General Disclosure GRI 101;Basis Page numberCommentaryIndicator number and description 1. Reporting principles 2. Use GRI standards for sustainability reporting 3. Make a statement related to the use of GRI standards P0 P0 P0102-1 Organization name102-2 Activities, brands, products and services102-3 Headquarters location102-4 Business location102-5 Ownership and legal form102-6 Markets served102-7 Organization scale102-8 Information about employees and other workers102-9 Supply chain102-10 Signi?cant changes in the organization and its supply chain102-11 Early warning principles or guidelines102-12 External initiatives102-13 Membership of the association P03 P03 P03 P03 P13-14 P03 P03 P03 P51 P04 102-14 Statement by Senior Decision Makers102-15 Key impacts, risks and opportunities P01-02 P04102-16 Values, principles, standards and codes of conduct102-17 Mechanisms for ethical suggestions and concerns P18 P18102-18 Governance structure102-19 Authorization102-20 Responsibility of executive management for economic, environmental andsocial issues102-21 Consultations with stakeholders on economic, environmental and socialissues102-22 The composition of the highest governance body and its committees102-23 Chairman of the highest governance body102-24 Nomination and selection of the highest governance body102-25 Con?ict of interest102-26 The role of the highest governance body in formulating purpose, values andstrategies102-27 The collective understanding of the highest governance body102-28 Performance evaluation of the highest governance body102-29 Identi?cation and management of economic, environmental and socialimpacts102-30 E?ect of risk management process102-31 Review of economic, environmental and social issues P13-14 　 P09 P10 　 P01 　　 P15 　　 P09 　 P09 1.Organizational Overview 2.Strategy 3.Ethics and Integrity 4. Governance GRI 102;General Disclosure GRI 201;EconomicPerformance Page numberCommentaryIndicator number and description 102-32 The role of the highest governance body in sustainability reporting102-33 Communication of important concerns102-34 Nature and total number of issues of major concern102-35 Remuneration Policy102-36 The process of determining remuneration102-37 Involvement of stakeholders in the remuneration decision process102-38 Annual total compensation ratio102-39 Annual total salary increase ratio P09 P10 P09 102-45 Entities covered in the consolidated ?nancial statements102-46 De?ne report content and topic boundaries102-47 List of Substantive Issues102-48 Information restatement102-49 Report changes102-50 Reporting period102-51 Date of most recent report102-52 Reporting cycle102-53 Contact information for issues related to this report102-54 Statement of reporting compliance with GRI standards102-55 GRI Content Index102-56 External assurance P0 P0 P09 　　 P0 P0 P0 P65 P0 P55-65 102-40 List of stakeholder groups102-41 Collective Bargaining Agreement102-42 Identi?cation and selection of stakeholders102-43 Stakeholder Participation Policy102-44 Main topics and concerns raised P10 　 P10 P10 P10 103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods P09 201-1 Economic value directly generated and distributed201-2 Financial impacts brought about by climate change and other risks and opportunities201-3 Obligatory ?xed bene?t plans and other retirement plans201-4 Financial subsidies granted by the government P05 5. Stakeholder Participation 1. Management Method Disclosure 2. Special Disclosure of Issues 4. Governance(continued) 6. Reporting practice Environmental, Social and Governance Report 2020 Indicator Index 58杭州巨星科技股份有限公司 2020年度ESG报告 GRI 202;Market Performance GRI 203;Indirect EconomicImpact GRI 204;Procurement Practice GRI 205;Anti-corruption GRI 206;Unfair Competition GRI 207: Tax AFairs Page numberCommentaryIndicator number and description 103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods202-1 The ratio of the standard starting salary level wage to the local minimum wage based on gender202-2 Proportion of senior executives hired from local communities103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods 103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods 　 P51 　 103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods P09 P18、P52 P52205-1 Operation points that have undergone a corruption risk assessment205-2 Communication and training of anti-corruption policies and procedures 　205-3 Con?rmed incidents of corruption and actions taken103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods 　　 207-1 Tax management methods207-2 Tax management, control, and risk management207-3 Participation of stakeholders and tax-related issues management207-4 Country Report 206-1 Legal proceedings against unfair competition, antitrust and antitrust practices 204-1 Proportion of purchase expenditure from local suppliers 203-1 Infrastructure Investment and Supporting Services203-2 Signi?cant indirect economic impact P54 P54 P09 1. Management Method Disclosure 1. Management Method Disclosure 1. Management Method Disclosure 2. Special Disclosure of Issues 1. Management Method Disclosure 1. Management Method Disclosure2. Special Disclosure of Issues 2. Special Disclosure of Issues 2. Special Disclosure of Issues 2. Special Disclosure of Issues 1.Management Method Disclosure 2.Special Disclosure of IssuesGRI 301;Materials GRI 302;Energy GRI 303;Water Resources GRI 304;Biodiversity Page numberCommentaryIndicator number and description 103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods301-1 Weight or volume of materials used301-2 Recycled feed used301-3 Recycled products and packaging materials103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods P09 P36 P09 P37 P38 103-1 Explanation of substantive topics and their boundaries 103-2 Management method and its components 103-3 Evaluation of management methods 103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods 302-1 Energy consumption within the organization 6302-2 Energy consumption outside the organization 8302-3 Energy intensity 10302-4 Reduce energy consumption 11302-5 Reduce energy demand for products and services 303-1 Water withdrawal by source303-2 Water sources that are signi?cantly a?ected by water intake303-3 Water intake303-4 Displacement303-5 Water consumption 304-1 Operation points owned, leased, and managed by the organization in or adjacent to protected areas and biodiversity-rich areas outside the protected areas304-2 Signi?cant impact of activities, products and services on biodiversity304-3 Habitats protected or restored304-4 Species that have been included in the IUCN Red List and the National Protected List in the habitats of the areas a?ected by the operation 1. Management Method Disclosure 1. Management Method Disclosure 1. Management Method Disclosure 2. Special Disclosure of Issues 2. Special Disclosure of Issues 2. Special Disclosure of Issues 1.Management Method Disclosure 2. Special Disclosure of Issues Environmental, Social and Governance Report 2020 jwr?zc? Indicator Index 60杭州巨星科技股份有限公司 2020年度ESG报告 GRI 305;Emission  GRI 306;Sewage and Waste GRI 307;EnvironmentalCompliance GRI 308;Supplier EnvironmentalAssessment Indicator number and description 103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods P09P36　 P09P37　 P09　 P37　 P09P43　305-1 Direct (Scope 1) Greenhouse Gas Emissions305-2 Energy Indirect (Scope 2) Greenhouse Gas Emissions305-3 Other indirect (Scope 3) greenhouse gas emissions305-4 Greenhouse Gas Emission Intensity305-5 Greenhouse gas emission reduction305-6 Emissions of Ozone Depleting Substances (ODS)305-7 Nitrogen oxides (NOX), sulfur oxides (SOX) and other major gas emissions103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods306-1 Total amount of discharged water classi?ed by water quality anddischarge destination306-2 Total waste classi?ed by type and treatment method306-3 Major leak306-4 Hazardous waste transportation306-5 Water bodies a?ected by drainage and/or runo?103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods 103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods P09P51P51P51 307-1 Violation of environmental laws and regulations 308-1 New suppliers screened using environmental standards308-2 The negative impact of the supply chain on the environment and the actions taken 1. Management Method Disclosure 2. Special Disclosure of Issues 1. Management Method Disclosure 1. Management Method Disclosure2. Special Disclosure of Issues 2. Special Disclosure of Issues 1.Management Method Disclosure 2. Special Disclosure of Issues GRI 401;Employment GRI 402;Labour Relations GRI 403;Occupational healthand safety GRI 404;Training and Education Indicator number and description 103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods401-1 New hires and employee turnover rate401-2 Bene?ts provided to full-time employees (excluding temporary or part-time employees)401-3 Parental leave P43-44 103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods402-1 Minimum notice period for operational changes103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods P09P39403-1 Occupational health and safety management system403-2 Hazard identi?cation, risk assessment, and event investigation403-3 Occupational health services403-4 Occupational health and safety a?airs: the participation, consultation and communication of workers403-5 Worker occupational health and safety training403-6 Promotion of workers' health403-7 The prevention and mitigation of occupational health and safety impacts directly related to business relationships403-8 Workers recovered by the occupational health and safety management system403-9 Occupational injury403-10 Work-related health issues P39P39P39P35P40P43P39-40P39-40P06P40103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods404-1 Average number of training hours per employee per year404-2 Employee Skills Upgrading Program and Transition Assistance Program404-3 Percentage of employees who regularly receive performance and career development appraisal P09P47-48 P47 1. Management Method Disclosure 2. Special Disclosure of Issues1. Management Method Disclosure 1. Management Method Disclosure 2. Special Disclosure of Issues 2. Special Disclosure of Issues 1.Management Method Disclosure 2. Special Disclosure of Issues Environmental, Social and Governance Report 2020 Page numberCommentaryPage numberCommentary jwr?zc? Indicator Index 62杭州巨星科技股份有限公司 2020年度ESG报告 GRI 405;Diversity and EqualOpportunities GRI 406;Anti-discrimination GRI 407;Freedom of Associationand CollectiveBargaining GRI 408;Child Labour GRI 409;Forced or CompulsoryLabor GRI 410;Security Practice Indicator number and description 405-1 Diversi?cation of governance institutions and employees405-2 Ratio of basic salary and remuneration for men and women P10、P43 103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods406-1 Discrimination incidents and corrective actions taken103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods 103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods 103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods 103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods 407-1 Operational sites and suppliers where freedom of association and collective bargaining rights may be at risk 408-1 Operating sites and suppliers with signi?cant risk of child labor incidents 409-1 Operations and suppliers with signi?cant risks of forced or compulsory labor incidents 410-1 Security personnel trained in human rights policies or procedures 1. Management Method Disclosure 2. Special Disclosure of Issues1. Management Method Disclosure 1. Management Method Disclosure 1. Management Method Disclosure 1. Management Method Disclosure 2. Special Disclosure of Issues 2. Special Disclosure of Issues 2. Special Disclosure of Issues 2. Special Disclosure of Issues 2. Special Disclosure of Issues GRI 411;Indigenous Rights GRI 412;Human RightsAssessment GRI 413;Local Communities GRI 414;Supplier SocialAssessment GRI 415;Public Policy Indicator number and description 103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods411-1 Incidents involving violations of the rights of indigenous peoples103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods 103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods P54 103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods P09P51 103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods 412-1 Operation points subject to human rights review or impact assessment412-2 Employee training on human rights policies or procedures412-3 Important investment agreements and contracts that contain human rightsclauses or have undergone human rights review 413-1 Operation points with local community participation, impact assessment and development plan413-2 Operation points that have actual or potentially signi?cant negative impacts on the local community 414-1 New suppliers screened using social standards414-2 The negative impact of the supply chain on society and the actions taken P51 415-1 Political donation 1. Management Method Disclosure 2. Special Disclosure of Issues1. Management Method Disclosure 1. Management Method Disclosure 1. Management Method Disclosure 1. Management Method Disclosure 2. Special Disclosure of Issues 2. Special Disclosure of Issues 2. Special Disclosure of Issues 2. Special Disclosure of Issues 103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods P43-P45 1. Management Method Disclosure Environmental, Social and Governance Report 2020 Page numberCommentaryPage numberCommentary jwr?zc? Indicator Index 64杭州巨星科技股份有限公司 2020年度ESG报告 GRI 416;Customer Health andSafety GRI 417;Marketing and Logo GRI 418;Customer Privacy GRI 419;Socio-economicCompliance Indicator number and description 103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods416-1 Assessment of the health and safety impact of product and service categories416-2 Violations involving the health and safety impact of products and services103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods 103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods 1103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods 417-1 Requirements for product and service information and labeling417-2 Violations involving product and service information and labeling417-3 Violations involving marketing 418-1 Substantiated complaints related to violations of customer privacy and loss of customer information 419-1 Violation of laws and regulations in the social and economic ?elds 1. Management Method Disclosure 2. Special Disclosure of Issues 1. Management Method Disclosure 1. Management Method Disclosure 1. Management Method Disclosure 2. Special Disclosure of Issues 2. Special Disclosure of Issues 2. Special Disclosure of Issues Reader Feedback Form 1. Which type of stakeholder do you belong to: 6. If you have any comments and suggestions on the social responsibility work of GreatStar Technology and this report, you are welcome to put forward: Dear readers: Hello! Thank you very much for reading this report during your busy schedule. In order to provide you andother stakeholders with more valuable ESG information, please help us complete the feedback form andgive us feedback in the following ways to help us further improve ESG management capabilities.Address: No. 35, Jiuhuan Road, ShangchengDistrict, HangzhouFax: 0571-81601088 Email: zq@greatstartools.comPostal code: 310019 Tel: 0571-81601076 2. Your overall evaluation of this report is: Very Good FairGoodPoor 3. In your opinion, the quality of the social responsibility information disclosed in this report: Very Good FairGoodPoor 4. What do you think of the structure of this report: Very reasonableFairReasonablePoor 5. 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1杭州巨星科技股份有限公司 2020年度ESG报告

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This report is the ?rst ESG report issued byHangzhou GreatStar Industrial Co., Ltd. anddiscloses the company's philosophy, measuresand performance in ful?lling its economic, social,environmental and governance responsibilities.Prior to the release of the report, all data andrelated contents have been reviewed by thedepartments and management on multipleoccasions, and there are no false records,misleading statements or material omissions.The policies and data provided in this reportencompass the Company and its subsidiaries andare consistent in scope with the annual report.Unless otherwise stated, the currency used in thereport is RMB. For ease of presentation, HangzhouGreatStar Industrial Co.,Ltd. is also referred toas "GreatStar Technology", "GreatStar", "theCompany" or "we".GRI Sustainability Development Report Standardsissued by Global Sustainability Standard BoardISO 26000:Guide to Social Responsibility issuedby International Organization for StandardizationChina National Standards, GB/T 36000-2015Guidance on the Compilation of Corporate SocialResponsibility ReportShenzhen Exchange Stock: Guidelines forStandardized Operation of Listed Companies ofShenzhen Stock Exchange (Revised in 2020)This report is in Chinese and is published in bothprinted (printed on environmentally friendlypaper) and electronic formats.The electronic version is available on the websiteof Shenzhen Stock Exchange:

http://www.szse.cn/.

Notes to the Report

Scope and Boundary of the Report

Basis for Compilation

Access to the Report

Message from the Chairman

Responsible GreatStarAbout GreatStar Technology

Honored GreatStar

01

0503

05

Development HistoryAnalysis of Substantive IssuesStakeholder Communication

070910

Company GovernanceAnti-corruption and Integrity PromotionCompliance Operation

11Governance of Responsibility

Quality ControlCustomer ServiceData SecurityIntellectual Property

Focus on R&D

19Excellent Quality

Management SystemOccupational HealthEnvironmental Protection

33EHS Management

Compliance EmploymentEmployee DevelopmentHumanistic Care

41Ful?llment of Employees

Win-win CooperationCommunity CharityFighting the Epidemic Together

Develop Hand in Hand

Indicator IndexReader Feedback Form5564

Directory

0102’?\[i杭州巨星科技股份有限公司 2020年度ESG报告

Message from the ChairmanDear?Stakeholders,

Hangzhou GreatStar Industrial Co., Ltd.

Signature of the Chairman

Thanks for reading the ?rst Environ-mental,?Social?and?GovernanceReport of GreatStar. In response toyour interest and concern, GreatStarhas systematically reviewed theenvironmental, social and governancepractices and highlights in 2020. Inaddition to summarizing the resultsof the previous year, we also hopeto get constructive suggestions fromour distinguished readers, so as toimprove our management and practicecapabilities in ESG, and thus helpingour company to realize our visionof "building a centennial brand andcreating a centennial enterprise".In the face of the sudden outbreak ofCOVID-19, GreatStar formulated and

handling in process, and preventedsafety risks and safeguardedenvironmental safety in practice. In2020, we invested a lot of resources inEHS management, and spent more than460,000 yuan on equipment renovationin Haining factory only, and the numberof work-related fatal accidents was 0.In addition to deepening our business,we focus on the corporate cultureof "customer ?rst, continuousimprovement, team collaboration,innovation and mutual bene?t", andstrictly comply with the laws andregulations of the places where weoperate to ensure compliant operationand responsible production.

implemented measures to prevent theepidemic, and actively supported ouremployees' lives and psychologicalwell-being while ensuring their healthand safety. In addition, we closelymonitored the development of theglobal epidemic and provided supportand assistance for the prevention andcontrol of the epidemic as much aswe could, striving to demonstrate ourresponsibility and commitment asa global corporate citizen. By takingadvantage of our business operationsand resource allocation, we donatedmuch-needed epidemic preventionmaterials to overseas customers,epidemic prevention funds to overseasChinese, and masks to workers ?ghtingon the front lines in China.

We are also committed to the mutualachievement of our employees andthe company. 227 intensive employeetraining sessions were organizedand conducted in 2020, with a totalof approximately 14,397 hours ofclassroom time, covering 5,097 people.At the same time, we strive to enhancethe happiness of our employees, notonly by ensuring that the average salaryof our employees is higher than theprovincial average salary standard inZhejiang Province in 2020, but also byproviding rich bene?ts and and carryingout diversi?ed activities. To help createa fair workplace, we actively promotethe diversity of our board of directors.By the end of 2020, the percentage

Environmental protection andoccupational health and safetymanagement are the key concernsof our company. In response to thenational concern for environmentalprotection, we integrate the conceptof environmental protection into ourdaily production and operation, andactively promote the implementationof the philosophy of green productdesign, green factory construction andgreen o?ce, in order to implementthe concept of energy saving and low-carbon and contribute to the ecologicalenvironmental protection of China. Inorder to guard the occupational healthand safety of our employees, we haveclari?ed our supervisory responsibilitiesin management, standardized accident

of female directors on our Board ofDirectors is approximately 55.6%.Looking ahead, we will uphold themission of "leading the technologicalprogress of tools and becomingthe benchmark of innovation in theindustry", continue to promote theimprovement of ESG managementof the company, actively assume theresponsibility to customers, investors,employees and other stakeholders, andbecome an enterprise with a high senseof social responsibility that contributesto the environment and society.

About GreatStar Industrial

Environmental, Social and Governance Report 2020

About GreatStar Industrial

Company Pro?le

Company Culture

Company Strategy

Hangzhou GreatStar Industrial Co., Ltd. was founded in 1993, and was listed on the Shenzhen Stock Exchange in July 2010 (stockcode: 002444). The company specializes in the research and development, production and sales of hand tools, power tools, lasermeasuring instruments, storage bins and other products, which have been widely used in various ?elds whether in household dailyuse, tourism and outdoor use, aerospace, or in the manufacturing and processing industry, repair industry, construction industry,etc. It is the largest hand tool company in Asia and the top three in the world, and it has been rated as "top 100 Private Enterprisesin Zhejiang Province" and "top 500 Enterprises in China's New Economy".Since its establishment, the company has become one of the major global hand tool suppliers to many Fortune 500 retailers suchas Home Depot, Lowe's, Walmart in the U.S., King?sher in Europe, and CTC in Canada, etc. with its strong product power andcomprehensive competitive advantages. By the end of 2020, the total assets of the company reached 13.678 billion yuan, with 7,376employees and manufacturing bases in the United States, Italy, Germany, Switzerland, Vietnam, Thailand, Cambodia, China andother countries, and customers on all ?ve continents.

To lead thetechnologicalprogress of tools,and become thebenchmark ofindustry innovation

To create acentury-old brandand achievea century-oldenterprise

Details determine

success or failure

Customer ?rst,pursue of excellence,teamwork spirit,innovation formutual bene?t

Utilizing the existing large-scale European and American supermarkets and e-commerce self-operated channels, we will focus on the main business with tools as the core product, whilewe will continue to dispose of non-core business assets to recover cash and use it for thedevelopment of the main business. Relying on extensional mergers and acquisitionsout, we willfully develop non-hand tools products including power tools and outdoor products.

We will strengthen the construction of our own brand service system in Europe and America and the layoutof production capacity in Southeast Asia, select high-quality foreign companies for industrial merger andintegration, better access to international resources and international markets, and gradually upgradefrom an ODM company made in China to an international OBM company combining Chinese design, Asianmanufacturing and local services in Europe and America.

Relying on the Southeast Asian supply chain network with China as the core and the Chinese engineer dividend,we will dominate the current round of global supply chain division of labor in the tool industry, continue toexpand our leading position in the industry, lead the development of the international tool industry, andgradually take over the current round of industrial transfer in Europe and the United States in the era ofinnovation economy with the creation of customer demand as the core in the future.

We respect the century-old development history of the hardware tool industry, and relying on the characteristicsof slow growth and stable cash ?ow in the consumer durables ?eld, we plan our own business and developmentpath in a long-term period, and gradually cultivate new business growth points, and ?nally become a stablecompany with sustained growth, healthy development and long-term value providing for the society.

Focus on themain business

Company Mission

CompanyVision

Company Values

Company CulturePhilosophy

Global layout

Based in China

Long-term planning

2020

Responsible GreatStar

sta? training sessionsthe equivalent amount ofdonated materials to customers

during the epidemicnumber of people coveredtotal training hours

number of R&D personnel

R&D investmentnumber of new R&D product

Responsible GreatStar

Honored GreatStar

total assets

number of workdays lost due to

number of work accidents

total pro?t

number of employees whoparticipated in medicalexaminations for occupational-related diseases

number of fatal accidents at work

total operating income

number of employees who diedas a result of their work

number of fatal accidents due to

work

basic earnings per share

number of work-related injuries

death rate per million workinghours

2018/

2018

757.5

2019/

2019

Over 5 millions

2020

363.5

Performance

Indicators

Performance

Indicators

Performance

Indicators

Performance

Indicators

Performance

Indicators

sessionpersonhourUnit

personpiece

Unit

100 million yuan100 million yuan100 million yuanyuan/share

Unit

3,32114,6002018

20,697.501,5682018

92.81

8.81

59.35

0.67

2018

5,05815,8902019

20,377.271,5862019

111.32

10.45

66.25

0.84

2019

5,09714,3972020

24,537.211,6292020

136.78

15.64

85.44

1.27

2020

Honor listIssuer

Honor listIssuerHangzhou Famous Export Brand in 2019Hangzhou New Consumption Outstanding Contribution Enterprise (Toolmall)Enterprises with Outstanding Tax Contributions in Jianggan District in 2019Top 10 Classic Cases of Industrial Design in Hangzhou in 2020 (fast ratchetsqueeze wrench)Top 10 High-Quality Development Enterprises in 2019Winning Enterprise of Intelligent Transformation in 2019Top 10 Tax Contributors in 2019

Best Manufacturing Company of 2020(U.S. subsidiary Arrow Fastener Co., Inc.)China’s Top 500 New Economy in 2020China Patent Excellence Award (screwdriver)Zhejiang Foreign Trade Export Key Contact Enterprise in 2020-2021Top 20 Local Private Multinational Companies in Zhejiang in 2017-2019Top 50 Local Private Enterprises in Zhejiang for Multinational Operations in 2020Zhejiang Patent Excellence Award (screwdriver)

New Jersey Chamber of Commerce and Industryof the U.S.China Enterprises Evaluation AssociationNational Intellectual Property Administration,PRCZhejiang Provincial Department of CommerceZhejiang Provincial Department of CommerceZhejiang Zhijiang Multinational CorporationResearch Institute, Zhejiang Overseas InvestmentEnterprise AssociationZhejiang Provincial Intellectual Property O?ce,Zhejiang Provincial Market Supervision andAdministration Bureau

Hangzhou Municipal Bureau of CommerceHangzhou Municipal Bureau of CommerceCPC Hangzhou Jianggan District Committee, HangzhouJianggan District People’s GovernmentHangzhou Industrial Design AssociationPeople’s Government of Chang’an Town, Haining CityPeople’s Government of Chang’an Town, Haining CityPeople’s Government of Chang’an Town, Haining City

FinancialPerformance

Human

Resources

SocialDevelopment

Research andDevelopment(R&D), andInnovation

Health andEnvironment

Environmental, Social and Governance Report 2020

ten thousand yuan

Unit

Unitday

timeperson

person

timeperson

dollar

08杭州巨星科技股份有限公司 2020年度ESG报告07Development History

The road of GreatStar startup set sail in Room1004, Hangzhou Building

Acquired GOLDBLATT, a century-old U.S.construction tool brand

The central laboratory of Hangzhou GreatStarIndustrial Co., Ltd. was awarded the "LaboratoryAccreditation Certi?cate" by China NationalAccreditation Service for Conformity Assessment

Hangzhou GreatStar Tools Co. Ltd. wasformally established

Hangzhou GreatStar Industrial Co., Ltd. waslisted on the Shenzhen Stock Exchange

GreatStar Industrial established a roboticssubsidiary, opening a new chapter inintelligent manufacturing

Purchased the company's ?rst blistermachine from Taiwan and established theblister workshop

SHEFFIELD steel shield industrial gradeproducts formally entered the domesticmarket

GreatStar Industrial's professional sales tool "toolmall.com" was online

Purchased the ?rst injection moldingmachine and produced the ?rst product-thewatch screwdriver

GreatStar Industrial entered cross-bordere-commerce for the ?rst time, and openeda branded store in Amazon in the UnitedStates.

We applied laser engraving technology to thehammer wooden handle for the ?rst time inthe world, giving the smooth wooden handlea anti-slip function, and applied for a patentin the United States

Xiasha production base was completed

The establishment of Hangzhou GreatStarIndustrial Co., Ltd.1992

2010

2011

1993

2010

2014

1994

2010

2015

1996

2009

2016

1997

2008

2020

2001

2005

Development History

Establish company headquarters, packaging centerand logistics center in Hangzhou Jianggan Scienceand Technology ParkPurchased 200 acres of land in HainingLianhang Development Zone and planned tobuild Haining production base

GreatStar Industrial acquired Shop-Vac, awell-known brand of vacuum cleaners inNorth America, and fully entered the 100billion power tool market

Environmental, Social and Governance Report 2020

10杭州巨星科技股份有限公司 2020年度ESG报告09Analysis of Substantive Issues

Stakeholder Communication

The Company actively establishes a regular communication mechanism with its stakeholders, actively responds to the demandsand expectations of each stakeholder through multiple channels and targeted approaches, and makes timely adjustmentsaccording to the communication situation to jointly promote the sustainable and healthy development of the Company. In 2020,the company responded to the issues of interest of various stakeholders as follows:

According to the Global Reporting Initiative (GRI) Standards, GreatStar Industrial conducts analysis of substantive issues based onthe steps of identi?cation, ranking, and inspection. Every year, the company adjusts issues based on national policies, industrytrends, and annual hot issues.

StakeholdersExpectations and demandsResponse initiatives

Community constructionEnvironmental responsibility

Shareholder returnsEarnings growthInvestors relations

Business ethics and anti-corruptionFair and equitable procurementWin-win cooperation

Providing quality products and servicesContinuous product innovationProtecting consumer rightsProtecting customer privacy

Compensation & bene?tsTraining and promotionDemocratic participation in managementOccupational health and safety

Integrity in businessPaying taxes according to lawAchieving high quality developmentPromoting employmentContributing to the industry development

Signing integrity agreementSupplier trainingSupplier audit and inspectionPromoting the green supply chain

Shareholders' meetingCompliance governanceInformation disclosureCash dividendInvestors interaction

Carrying out charity activitiesSetting up the GreatStar FoundationActive participation in community servicePromoting green production and green o?ceImplementing energy saving and pollution control

Paying taxes on time and in fullPromoting compliance managementProviding employment opportunitiesEnhancing R&D capabilitiesParticipating in industry eventsDeveloping industry standards

Strict quality controlProduct safety testingIncreasing investment in R&DImproving customer service systemCustomer satisfaction surveyGuaranteeing user information security

Equal, diversi?ed and inclusive working environmentImproving compensation and performance managementEstablishing long-term training mechanismEmployee care activitiesEmployee opinion and consultationEnsuring safety production

Government/Regulatory

Shareholders/Investors

Employee

Supplier

Customer

Community

Analysis of Substantive Issues

Through questionnaires andsurvey interviews with internaland external key stakeholders,we systematically quantify andanalyze the materiality of impactand the materiality of stakeholderconcerns as dimensions to forma substantive issue matrix.

Note: Substantive issue matrix of GreatStar Industrial

The company’s seniormanagement and the workinggroup validate the substantiveissue identi?cation results, andform the ?nal substantive issuematrix.

Based on the GRI Standards,the 22 substantive issues weresorted out after internal workinggroup discussions with referenceto SASB Materiality Map,domestic and international peercompanies’ substantive issuesand the business characteristicsof GreatStar Industrial.

RankingCon?rmingIdenti?cation

Importance to GreatStar Industrial

Addressing climate changeDesigning greenproducts

Reducing energyconsumption

Supporting community

developmentCreating a greensupply chain

Network and datasecurity

Consumer privacyprotectionStrengthening supply chainmanagement

Disposal of “three wastes”

Life and work balance ofemployees

EHSmanagement

Product quality and safety

Occupational healthand safetyProtection ofemployees' basicrights and interests

Tightening the focus on anti-corruptionand integrity promotion

Improving business performanceStrengthening compliance operations

Ful?lling business ethics

Improving company governanceEnhancingcustomersatisfactionCareer development andeducation trainingProtectingintellectualpropertyImportance to Stakeholders

Environmental, Social and Governance Report 2020

12杭州巨星科技股份有限公司 2020年度ESG报告

Operating income

billion yuan

Female directorspeople

85.44

Governance of Responsibility

In strict accordance with relevant laws and regulations, GreatStarIndustrial has established a sound corporate governance structureand a system to protect shareholders' rights and interests,continuously improved its operations, carried out strict internalcontrols, internal supervision and integrity culture promotion,ensured sound operations of the company, and e?ectivelyresponded to the expectations and demands of shareholders andvarious stakeholders.

1314’?\[i杭州巨星科技股份有限公司 2020年度ESG报告

Company GovernanceIn strict accordance with the "Company Law of the People's Republic of China", "Securities Law of the People's Republic of China","Listed Company Governance Guidelines", "Shenzhen Stock Exchange Listed Companies Standard Operation Guidelines" and otherlaws, regulations and normative requirements, the Company, judging from the actual situation, established and improved the"Rules of Procedures for the General Meeting of Shareholders of the Company", "Rules of Procedures for the Board of

Board of DirectorsPresident

Executive President

O?ce of the Chairman

Business Management O?ce

Export Center

Research and DevelopmentCenter

Quality Control Center

E-commerce Center

E-commerce IT Department

Laser Measurement Department

Organization Chart of GreatStar Industrial

Purchasing Center

Environmental, Social and Governance Report 2020

Responsibility Governance

Information Center

Software Application

Department 1Software Application

Department 2Hardware Operation andMaintenance DepartmentSoftware Research andDevelopment Department

Securities and InvestmentDepartment

Legal DepartmentSecurities DepartmentInvestment Department

Administration Center

Administrative O?ceHuman Resources

DepartmentInfrastructureEngineering Department

Logistics Department

Financial Center

Ministry of Foreign Trade

and FinanceFinancial AccountingDepartmentFinancial ManagementDepartmentInternational ManagementDepartmentFund Management

Department

Quality AssuranceDepartmentQuality ControlDepartmentCentral Laboratory

Laser Products DivisionAdministrativepersonnel departmentChannel OperationDepartmentTumao. com Operation

DepartmentSupply ChainManagement Department

Brand PromotionDepartmentMarketingDepartmentWarehousingDepartmentProduct TechnicalSupport DepartmentOwn-brand Operation

DepartmentCustomer Service

Department

Material and Process

Research InstituteElectric ApplianceTools DepartmentOwn-brand ToolsDepartmentProject GeneralDepartmentArrow AslaDepartment

Mechanical ToolsDepartmentKnife and ScissorsDepartmentIntegrated Design

DepartmentRapid Prototyping

Department

ComprehensiveTool ProcurementDepartment IComprehensiveTool Procurement

Department II

Machinery ToolsProcurementDepartment

Decoration Tools

ProcurementDepartmentE-commerce Procurement

DepartmentPackaging Procurement

Department

ProcurementDevelopment Department

ARTWORK Design

DepartmentOwn-brandManagementDepartment

Export Department IExport Department IIExport Department IIIExport Department IVExport Department VExport Department VIExport Department VIIExport Department VIIIInternationalE-CommerceDepartmentMarket DevelopmentDepartmentMarketing SupportDepartmentGOLKDBLATTDepartmentDocumentationDepartment

directors of the Company", "Rules of Procedures for the Board of Supervisors of the Company", "Administrative Measures for FundsRaised by the Company" and "Administrative System for Providing Externally Financial Aid" and other rules and regulations, whichhas formed a perfect operating system for important matters such as foreign investment, entrusted ?nancial management, andderivatives transactions.

’?\[i

The general meeting of shareholders is the company's highest authority, which exercises the power to decide on majormatters such as the company's operating policies, investment plans, pro?t distribution plans, and amendments tothe articles of association. The company treats all shareholders equally, ensures that all shareholders have the right toknow and participate in major company matters, and ensure that all shareholders fully exercise their rights.

The board of directors carried out its work in strictaccordance with the "Articles of Association", "Rulesof Procedure of the Board of Directors", "IndependentDirectors Working System", "Working Rules of the BoardSecretary", "Guidelines for the Normative Operation ofListed Companies on the Shenzhen Stock Exchange" andother systems, and strictly implemented the resolutionsof the shareholders' meeting. The committees under theboard of directors exercise their powers in accordancewith the law, give full play to their professionalism anddecision-making capabilities, perform their obligationshonestly and diligently, and convene special committeemeetings in a timely manner, to provide importantopinions for the company's decision-making, andto ensure the company's compliance operation anddecision-making accuracy.

The Board of Supervisors convenes the Boardof Supervisors, attends the general meeting ofshareholders, and attends the Board of Directors asnon-voting delegates in accordance with the "Rulesof Procedures of the Board of Supervisors" andother rules and regulations, to e?ectively superviseand issue independent opinions on major companymatters, related transactions, ?nancial status, andperformance of directors and presidents.

General Meeting of Shareholders

Board of DirectorsBoard of Supervisors

In the board of directors

directors

Female directors

Independent directorsEmployee supervisors

supervisorsIn the board of supervisorsFemale independent directors

The company strictly complies with the "Shenzhen Stock Exchange Stock ListingRules" and other relevant requirements to perform its information disclosureobligations, prepare and disclose regular reports within the legal time limit, so thatthe report content is accurate and complete with no major omissions. During thereporting period, the company continues to improve the quality of informationdisclosure, discloses information that investors are concerned about in the formof temporary announcements, and proactively discloses quarterly performanceforecasts, the latest developments of epidemic prevention material business, neworders for lidar products, etc., to ensure that all stakeholders, led by shareholdersand investors, receive important information about the company in a fair and timelymanner.

Information Disclosure

The company continues to improve the legal person governance structure, establishesa corporate governance structure composed of the general meeting of shareholders,the board of directors, the board of supervisors, and operating management, clari?esthe hierarchical decision-making mechanism of"three meetings and one level"witheach level performing duties within the scope of its responsibilities and powers,forming a scienti?c and e?ective division of responsibilities and checks and balancesmechanism.In 2020, the company will organize and convene shareholder meetings, board ofdirectors, and board of supervisors in accordance with the rules, and its votingcomplies with legal procedures and the company's articles of association to ensurethe standardized operation of the three meetings.

Operation of the three meetings

Shareholders' meeting

times

timesBoard of directors

Board of Supervisors

In 2020, a total of

investor questions answered

calls

Temporary announcements disclosed

The information disclosure rating has beenrated by Shenzhen Stock Exchange for fourconsecutive years

From investors through ShenzhenStock Exchange interactive platform

Disclosure documents

The company attaches importance to communication with the capital market,timely understanding of investor needs and market feedback, and establishes richcommunication and feedback channels to maintain timely communication withinvestors through various forms such as telephone, email, Shenzhen Stock Exchangeinteractive platform, performance brie?ngs, investor reception days, etc. to promoteinvestors' understanding of the company and convey the value of the company toinvestors.A?ected by the COVID-19, the company actively uses WeChat, telephone, email,website and other methods to maintain close communication with investors in 2020,and informs investors of changes in the company and the industry in a timely mannerthrough online brie?ngs and temporary announcements.

Investors relations

Environmental, Social and Governance Report 2020

Responsibility Governance

1718’?\[i杭州巨星科技股份有限公司 2020年度ESG报告

Anti-corruption and integrity promotion

The company adheres to the principle of integrity and honesty in business, and in the attitude of responsibility to consumers andsociety, strictly implements the responsibility of anti-corruption and integrity promotion in all work, and maintains a good businessorder. At the same time, the company attaches importance to the construction of the culture of integrity, and actively promotesanti-corruption and integrity promotion to employees and organizes related training activities to establish a correct business ethicsorientation for employees.

Compliance OperationThe Company has established a relatively complete internal control system and a standardized operating internal controlenvironment to ensure the orderly and e?ective conduct of all business activities and the legal compliance of operation andmanagement and the safety of assets.At the same time, the company has formulated and complied with the relevant provisions of the Internal Audit System andcontinuously organized all business departments and all holding subsidiaries to conduct self-evaluation of the e?ectivenessand implementation of the internal control system, to provide reasonable assurance of legal compliance of operation andmanagement, safety of assets, truthfulness and integrity of ?nancial reports and related information.In 2020, the Audit Committee of the Board of Directors, in accordance with relevant laws and regulations as well as the Articles ofAssociation and the Implementation Rules of the Audit Committee of the Company, diligently and responsibly, guided the AuditDepartment of the Company to review the internal control system and its implementation, important accounting policies, the?nancial position and operation, and the use and management of funds raised, providing e?ective guidance and supervision onthe ?nancial status and operation of the company.

The company actively creates an incorruptible working environment

Set up an anti-corruption committee with the chairman as director and the legal director, secretary of the board ofdirectors and human resources director as core members to strengthen supervision and discipline accountabilityand e?ectively prevent and control corrupt practices in the company

Formulate and implement the "Regulations on Integrity Management of Sta? Integrity and Self-discipline Suppliers"and other related internal management systems, and sign the "Commitment of Sta? Integrity and Self-discipline"with employees in key positions such as procurement and administration, so as to strictly prohibit any corruptionor infringement of company property by employees taking advantage of their positions

Establish a smooth and convenient complaint and reporting channel according to the internal "EmployeeGrievance Handling Procedures", and reward employees who actively use the reporting channel with a certainpercentage of the amount involved in corruption; implement a strict protection system for reporters, and promiseto keep the information of the reporters con?dential from any third party other than the receiver.

Reporting channel

Formulate and carry out regularly internal audits according to the Internal Audit System and the Exit Audit System.For the cases of corruption, fraud and commercial bribery found in the audit, we will con?scate the illegal income,dismiss, or make internal notice and other corresponding treatment according to the amount involved; if thecircumstances are serious, we will transfer them to judicial organs for treatment.

Environmental, Social and Governance Report 2020

The company attaches great importance to network data security, constantly improves the construction of data securitymanagement system, formulates and implements the "Computer Network Information Security Management System" and othersystems to maintain the compliance operation of network information, ensure the security of computer data and the stability ofequipment, and fully implement data security management obligations.The company has set up a network security business learning group, organized regular training annually, and carried out networksecurity knowledge lectures and forums regularly or irregularly. In 2020, the company carried out "network information securitycontrol" thematic training sessions for employees in relevant positions to strengthen their network security awareness, throughthe introduction of the company's internal information security management system, as well as the in-depth study and discussionof how to prevent network security.

Network Information Security

Management structure

Institutional system

Internal monitoring

Responsibility Governance

1920/>1w杭州巨星科技股份有限公司 2020年度ESG报告

Number of valid patents

pieces

R&D investment

million yuan

1,542

24,537.21

Excellent Quality

The company establishes a scienti?c and perfect qualitymanagement system, constantly optimizes the productevaluation process, and increases investment in R&D fundsand talent reserves to ensure that the company's productinnovation keeps pace with the market, accurately graspsthe direction of market development, and stimulates thecompany's market vitality and creativity. In addition toensuring product quality, the company has also establisheda sound customer service system to make services moree?cient and convenient in order to establish long-term andstable customer relationships.

2122/>1w杭州巨星科技股份有限公司 2020年度ESG报告

Quality ControlThe company attaches great importance to the control of product quality andhas established a top-down quality management system to carry out strictquality control of products. The company's quality control center has QAquality inspection department, QC quality inspection department and centrallaboratory, which are responsible for drafting and approving product inspectionprocedures, product quality inspection and mechanical performance, chemicaltesting, electrical performance testing, etc. This has greatly improved thee?ciency of product inspection and testing and provided practical guaranteefor product quality improvement. In addition, the company constantly improvesproduct quality, continuously improves the evaluation process, and participatesin the development of many standards, establishing a solid foundation for thedevelopment of its own brand and providing direction for the development ofthe industry.

The company adheres to the quality management policy of "keep improving,seek quality and innovation", and always positions product quality managementas the top priority of production work. According to the requirements ofISO9001:2015 quality management system, the company has established acomplete quality control procedure; each subsidiary has established a qualitycontrol manual according to its production process and identi?ed the relevantperson in charge to manage it.The company's quality control system covers all aspects of management,procurement, production and sales, among which the president of the companyis responsible for supervising and guiding the quality control work in the R&Dstage, the quality control center and R&D center are responsible for executingspeci?c quality control work, and the relevant departments such as procurementand sales are responsible for their own responsibilities. The company carries outstrict quality control throughout the whole life cycle from product development,to production, warehousing and sales, and continuously collects evaluation fromconsumers in the after-sales stage and feeds back to the production departmentfor improvement to form a complete quality control closed loop.

Quality control process

Product improvement throughoutthe production process

Building and developing its own brand has been the company's key strategy inrecent years. The improvement of its own brand is by no means an overnightthing, which needs to pass the long-term test of the market, and a long timeof brand precipitation. The company has established a relatively independentquality control system with a relatively independent organizational structure,continues to improve processes and product quality to help the rapiddevelopment of its own brands.

After the product design is completed,the company ?rst produces a smallbatch of samples for customers tocon?rm, and any ideas and commentsfrom customers on the samples will befed back to the company internally forimprovement.

During the internal testing processbefore the samples are deliveredto customers, the quality controlcenter will ?nd the problems andshortcomings of the samples andimprove them. After the sample stage isthe small batch trial production stage,through this stage of internal testingand feedback, we will con?rm whetherthe product mass production levelmeets the customer's requirements.

When the small batch production ofthe product meets the customer'srequirements, the company willmass produce the product, and thequality control center will continue toimprove the product during the massproduction. At present, the companywill continuously promote and improve100 items every year.

Every month, the company collectsonline the evaluation and feedbackfrom consumers in the process of usingthe product, and after collecting theseevaluations, we will analyze them toimprove the product.

Quality Management System

Continuous Improvement Process

Product design stageProduct testing stageProduct production stageProduct after-sales stage

Original Sample Assessment

Parts InspectionFMEA/CP Prepared,

FMEA/CP ?lesFormulate StandardNew Product AssessmentFormulate Inspection Procedures

Factory EvaluationSample Assessment

Supervise and Execute

Tracking ProcessGoods AssessmentOn-site Inspection

Incoming Quality Control Final Quality Control

In Factory Inspection Customer Inspection

Design Period   Vendor Choose    Production Phase     Inspection Control      Packaging and Shipment

Environmental, Social and Governance Report 2020

Excellent Quality

/>1w

SCAR project with customers, and the self-developed product won THE HOME DEPOTannual innovation product award

CaseIn order to continuously improve product quality, the company cooperated with customers in theSCAR project to analyze and improve the product production process through defective sampleanalysis, design review improvement, component key dimension veri?cation, production lineimprovement, component improvement, and quality inspection improvement, thereby furtherimproving the production line yield rate, reducing the product return rate, and improving theproduct customer score.The company made signi?cant improvements to HUSKY quick-change PVC pipe cutter technologythrough returned sample analysis, root cause analysis of problems, process improvement, andcustomer score analysis, resulting in a reduction in the product internal defect rate from 4% to 2%and an increase in customer score from 3.4 to 4.5.HUSKY quick-change PVC pipe cutter technology introduces the blade quick-change conceptto PVC pipe cutters for the ?rst time. This self-developed core technology has applied forinvention patents in China, the United States, Canada, the European Union and other countriesand regions, and in October 2020, it was awarded the annual innovation product by THE HOMEDEPOT, a Fortune 500 company, fully re?ecting the company's technological innovation inproduct development.Product innovation not only ensures that the company can grasp market opportunities andrespond to market demand quickly, but also provides a guarantee for the improvement of thecompany's comprehensive strength.

Some of International and industry standards thatthe company has participated in developing

Quality control/assessment failure

Enter into OA process

Evaluate and assign tasks

Analyze causes and develop

countermeasuresCoaching/implementation of

improvement measuresVeri?cation of improvement e?ect

Summarize/extend application

ACPDA：DisposalC：Inspection

D：ImplementationP：Plan

ACD

ACPD

 Participation in standards development

ParticipationNo.Standard No.Standard Name

QB/T 2212.1-2011

QB/T 2094.6-2015

QB/T1518-2018

QB/T 2289.6-2012

QB/T 1108-2015

QB/T 1736-2018

ISO 21982-2020

QB/T 2564.1-2012

QB/T2083-2017

QB/T 4207-2011

GB/T 10635-2013

QB/T 4944-2016

QB/T5373-2019

general technical conditions forconstruction tools (masonry class)

woodworking saws clampback saws

electric welding plierstechnical conditions

gardening tools hand saws

hacksaw frame

woodworking drill

ratchet wrench

screw toolsnaming and terminology

?ush putty knife

one-slot screw spinningtool head

general technical conditionsfor screw spinners

universal cable cutter

F-type woodworking

?rst drafter

main drafter

participate in drafting

?rst drafter

main drafter

ZDZero DefectContinuous Improvement Process

HUSKY quick-change PVC pipe cutter wins THEHOME DEPOT annual innovation product award

Environmental, Social and Governance Report 2020

The company's product inspection speci?cations all comply with international and domestic standards, customer requirements and internal productdevelopment technical standard requirements. Among them, QA Quality Assurance Department, the 2nd level department of Quality Control Center,as the ?rst drafter, has participated in the formulation of many international, industry and group standards, promoting the establishment of the bestorder in the industry and providing the necessary basis for the development of the industry.

Excellent Quality

/>1w

Focus on R&DGreatStar Industrial continues to increase independent R&D investment, increaseR&D innovation, improve the scienti?c and technological innovation system, improvethe e?ciency of product development, promote high-quality development ofenterprises, and help to upgrade the industry.

The company encourages its employees to carry out product innovation and pinpointcustomer needs in order to form new sales growth points and achieve the purposeof market expansion. In order to further encourage R&D technology innovation andstimulate the innovation potential of R&D sta?, the company has formulated the"R&D Innovation Incentive System" as a way to improve the competitiveness of theenterprise and promote the long-term development of the enterprise. At the endof each year, the company also conducts innovation evaluation for the R&D sta?,and the innovative products of the R&D sta? are rated and rewarded through acomprehensive consideration of their innovation e?orts and the sales brought by theR&D products.At present, the company's R&D department mainly includes hand tool developmentdepartment, power tool development department, product modeling department,mold center, machining center, product rapid forming center, testing and experimentcenter, etc. The company also cooperates with Zhejiang University and otheruniversities and scienti?c research institutes for research, using various resourcesfrom universities and scienti?c research institutes to solve various problems forenterprises, so that we can keep up with the times, adopt new materials andtechnologies in time and seize the opportunity in innovation.

Product R&D System

MarketResearch

ProductDesign

 productTesting

SampleSales

Customer

Order

MassProduction

QualityInspectionand Testing

Shipping

Establishing a central laboratory to improve the eIciency of product testingCaseIn order to ensure e?ective product inspection and testing, the company hasestablished the leading product testing laboratory in China, with professionalcerti?cation engineers and testing engineers, equipped with world advanced analysisand testing equipment such as Shimadzu from Japan, THERMO from Switzerland,PERKINELMER from the United States, etc., which provides an important guaranteefor the implementation of ROHS and PAHs environmental protection testingrequirements, among which the DC electric tools have passed the German "FFUpracticality simulation test".The company's central laboratory is the ?rst CNAS-accredited enterprise centrallaboratory in the domestic hand tool industry (see CNAS website for details ofthe scope of accreditation), and the e?ciency of reports issued by third-partylaboratories is equivalent. All products exported by the company are required toproduce inspection reports, and before the establishment of the central laboratory,these inspection reports were originally issued by third-party international brandlaboratories. After the establishment of the central laboratory, as the company'sproducts have reliable guarantee in terms of application, safety, e?ciency, energysaving and environmental protection, customers recognize and accept the testreports issued by the company's central laboratory out of trust in the quality of thecompany's products.

Physical-Mechanical Laboratory Power Tool/Lamp Laboratory

Chemical Analysis LaboratoryDurable Life Test RoomCompany's central laboratory received CNAS accreditation

ProductDevelopmentProcess

Environmental, Social and Governance Report 2020

Excellent Quality

/>1w

The company has a senior professional tool R&D team, which is always committed to newproduct development and innovation, upholds the concept of details determine success orfailure, actively develops new technologies, optimizes the production process of products,constantly improves the functionality and added value of products, and constantly improves thecompetitiveness of the company.

Product R&D Achievements

In 2020, the company invested

thousandyuan

New products designed

245,372.1

1,629

GreatStar Industrial was awarded as 4High-tech Enterprise4

GreatStar5s screwdriver invention patent won China Patent Award

Case

In March 2020, GreatStar Industrial was awarded the certi?cate of "High-tech Enterprise"issued by the Department of Science and Technology of Zhejiang Province, the Department ofFinance of Zhejiang Province and Zhejiang Provincial Taxation Bureau.

The company relies closely on technological innovation to promote enterprise development,and has gradually developed into an intelligent equipment enterprise integrating R&D,production and sales of hand tools and intelligent products, with strong new productdevelopment capabilities, and has been awarded "National Intellectual Property DemonstrationEnterprise", "National Industrial Design Center", "Provincial Enterprise Technology Center","Provincial Enterprise Research Institute" and other titles.

In July 2020, the State Intellectual PropertyO?ce and the World Intellectual PropertyOrganization announced the 21st ChinaPatent Award, and our company's inventionpatent "Screwdriver" won the China PatentExcellence Award.The company's "screwdriver" patent solvesthe problem that the e?ciency and torqueof existing screwdrivers cannot be balanced,and pioneeringly switches the speed increasefunction and torque increase functionthrough a latch switch. Consumers can switchbetween high speed rotation to improvee?ciency and increased torque to achievereliable tightening according to the actualneeds of work.

This time, the company was recognizedas a high-tech enterprise, which is a majordevelopment result of the company's adherenceto science and technology as the leading forceand innovation as the driving force, and is also afull a?rmation of the national and governmentalinnovation ability and core competitiveness ofour company.

The company was awarded the "High-techenterprise" certi?cate

The company's invented screwdriver

Customer serviceThe company adheres to the core concept of "customer ?rst, pursue of excellence, teamwork spirit, innovation for mutualbene?t", constantly optimizes the customer service system, improves after-sales service processes, strives to be a service-orientedmanufacturer, and provides customers with better services.

The company regards customers as the core, while providing customers with innovative, high-quality products and serviceexperience, it also puts social responsibility through marketing activities, providing high-quality localized services from R&D,production, logistics, warehousing, and sales to the entire process , and strides forward on the road of high-quality development.

E?ciently solve customers'new product needs.Relying on decades ofR&D accumulation andthe industry's top R&Dteam, as well as theincreasingly strong to Cbusiness, we proactivelylearn about marketchanges and proactivelyinform customers, helpingcustomers' products tolead the market trend

Relying on the globalsupply chain system, thecompany is graduallyupgrading from Chinadelivery to Asia deliveryto better meet customerneeds; building a full rangeof quality control system,from the source of suppliersto the delivery of ?nishedproducts to customers, wealways adhere to productquality to protect the rightsand interests of customers

We have built a perfectwarehousing and logisticssystem in the U.S. andare improving thewarehousing and logisticssystem in Europe, toprovide customers with aholistic service from thefactory to the customer'swarehouse or directly tothe customer's store.

Local sales sta? in Europeand the United Statesprovide customers witha full range of localservices, help customerscarry out promotionalactivities, pay attention tocustomer inventory, timelyreplenishment of customerinventory, in order to meeta variety of di?erent needsand protect the rights andinterests of customers

The whole process of customer service

R&D end

Production end

Warehousingand logisticsend

Sales end

Environmental, Social and Governance Report 2020

Excellent Quality

2930/>1w杭州巨星科技股份有限公司 2020年度ESG报告

The company not only provides exclusive customer service hotlines for ODM brands and private brands, but also collectscustomers' opinions regularly through questionnaires to continuously strengthen communication with customers and deal withtheir opinions in a timely manner. The company establishes a perfect after-sales service process, which makes the after-salesservice more standardized and normative and ensures the quality of the company's after-sales service.

The weekly business o?ce will send the customer opinion collection form to the sales managerfor the sales manager to report the problem.Send the customer questionnaire in the form of a con?dential letter every year for the customerto give feedback on the problem.Require the sales sta? to give the corresponding solution and reply to any problem raised by thecustomer.

The company's database uses Ali cloud ibs database, and the database is backed up regularlyto prevent data loss; the company has built a private network on Ali cloud, which can only beaccessed through the VPN deployed by the company, and cannot be accessed from outsideareas.The management rights of the database is in charge of the special database administrator, whowill give the developer the corresponding rights according to the business needs.The company monitors network data vulnerabilities in real time through Alian Knight; if a networkattack is found, Alian Knight will make automatic alerts.

The company's internal system is connected to Ali's Taobao and Tmall platforms throughAli's Qimen interface, and Ali will control the data security; the customer data imported fromTaobao and Tmall platforms, the company's internal management system will also control thecustomer's cell phone number and other sensitive information to prevent information leakage.The company's OMS system that manages inventory, shipping, and other informationmust comply with Ali's security speci?cations when docking with Ali; for sensitive customerinformation, the OMS system only allows a small amount of viewing, and does not allow large-scale data export.

Communicate customers' opinions to business departments through monthly summarymeetings.Summarize and publicize negative customer evaluations in the form of PPT throughquarterly summary meetings, including analysis of the reasons for negative evaluations andaccountability, to ensure that feedback implementation is in place and that no similar badfeedback or customer experience occurs subsequently.

Customer Opinion Feedback Mechanism

After-sales service process

Customer opinion collection

Data security measures

Customer privacy protection measures

Customer opinion feedback

Listen tocustomerfeedbackcarefully

Subsequentfollow-upservice

Fullycommunicatewith customers

Ask customers'opinionsCollect andorganizeafter-salesproblems

Proposesolutions

After-sales service

process

Data SecurityIn order to strengthen the company's data securitymanagement and maintain the normal operation of thenetwork, the company has formulated the "ComputerNetwork Information Security Management System" to ensurethe security of computer data as well as the stability of theequipment. The company adopts strict data security measuresand customer privacy protection measures, and conductsnetwork information security training for relevant personnelevery year to continuously improve employees' awareness ofdata security and e?ectively protect customer privacy.

Company network information security training

Environmental, Social and Governance Report 2020

Excellent Quality

3132/>1w杭州巨星科技股份有限公司 2020年度ESG报告

Intellectual propertyWhile continuously increasing R&D investment and intensifying innovation, thecompany also pays great attention to the protection of intellectual property rights.The company has established an intellectual property management system, adopteda number of intellectual property protection measures, continuously strengthenedthe protection of intellectual property rights, and safeguarded the company'slegitimate rights and interests.The company established an intellectual property management system in 2012 andpassed the intellectual property management system certi?cation in November 2014,becoming the ?rst batch of enterprises in Zhejiang Province to pass the intellectualproperty management certi?cation. In 2016, the company was awarded the title of"National Intellectual Property Demonstration Enterprise" and passed the reviewin 2019. At present, the company's intellectual property management system hasbeen revised and reviewed twice, and will be recerti?ed for the intellectual propertymanagement system in 2020.Certi?cate of Intellectual PropertyManagement System Certi?cation

The company has applied for annually

At the end of 2020

patentspatents

Valid patentsIt has currently

US patents

Invention patent applicationsInvention patent authorizations

EU patentsPCT applications

1,5422,758

530191

98111

Intellectual property protection measures

The company hasestablished a completemarket-oriented intellectualproperty managementsystem to ensure that thereis no infringement of theintellectual property rights ofothers in the entire processfrom R&D to product sales. Atthe same time, the companyapplies for patents for its owninnovations.

Before the R&D projectis established, we usethe commercial patentdatabase purchasedby the company tosearch and analyze,and give correspondingintellectual propertyrecommendations to avoidinfringement of existingpatents; after the designof the new product iscompleted, a patent searchand analysis will be carriedout again for the newdesign, and the conclusionof the intellectual propertyanalysis will be given toguide the follow-up work;before the product is sold,the patent search andanalysis will be carriedout again for the targetmarket of the sale, and the?nal result of intellectualproperty analysis will begiven.

Patent applications aremade for new ideasgenerated by the companyin the process of newproduct design, forming aspecial patent protectionfor the company to ensurethat patent applicationsare extended to whereverthe products are sold.

Every year, the companyholds intellectualproperty training for sales,purchasing and R&D sta?,so that all sta? closelyrelated to intellectualproperty can initiallyrespond to any problemsin their daily work andpromptly report thesituation to the intellectualproperty departmentfor further processing byprofessional sta?.

The company hasestablished an intellectualproperty emergency plan,and it will promptly arrangeprofessionals to respondto complaints, and hire aprofessional intellectualproperty company to assistin handling. The companyhas a number of long-termcooperative intellectualproperty companies at homeand abroad, providing legalservices for the company tosolve intellectual propertyissues. If an infringer is found inthe market, the sales sta? willpromptly report the relevantinformation to the intellectualproperty department. Andthe intellectual propertydepartment will immediatelytake a series of tasks suchas issuing company letters,issuing lawyers' letters,notarizing evidence, courtprosecutions, etc., to protectthe company's intellectualproperty.

The company'sintellectual propertystrategy is to focus on themarket, and there willbe corresponding patentapplications for productsthat are well sold in themarket, so as to protectthe company's intellectualachievements andprovide customers withcorresponding protection.

When all the company'snew products arecommissioned forprocessing, the companyand the supplier will sign acon?dentiality agreementand an underwritingagreement containingintellectual property terms.

The company'sprocurement contractsall contain intellectualproperty clauses to restrictsupplier behavior andprotect the company'sinterests.

The intellectual propertydepartment has 3 full-time sta? and 2 part-timesta? to be fully responsiblefor the company'sintellectual property work;procurement, exportand other departmentsclosely related tointellectual property areequipped with employeeswho are familiar withintellectual propertylaws and regulationsand implementationmethods, cooperatingwith intellectual propertydepartment to completethe realization of thecompany's goals.

The company trains newemployees on intellectualproperty rights to enhancetheir intellectual propertyawareness and make themrealize the importanceof intellectual propertywork to the company'sdevelopment. Whenencountering intellectualproperty-related issues atwork, after training, newemployees are able to dealwith these issues initially.

Environmental, Social and Governance Report 2020

Excellent Quality

3334EHSvi杭州巨星科技股份有限公司 2020年度ESG报告

The number of work-related injuries and work-related fatalities are both

Haining plant5s investment in equipmenttransformation for EHS management

yuan

460,100

EHS Management

GreatStar Industrial has established a completeEHS (Environment, Health, Safety) managementsystem to ensure that EHS related system conceptscan be implemented at the grassroots andmanagement levels. Through comprehensive EHSmanagement, the company actively ful?lls itsresponsibilities in environmental protection andoccupational health and safety..

3536EHSvi杭州巨星科技股份有限公司 2020年度ESG报告

The company integrates environmental protection, safe production and corporate development, actively establishes anEHS management committee involving various business departments, and includes 6 employee representatives in the EHSmanagement committee to protect employees' rights to participate in occupational health and safety decision-making.

In response to the national call for energy conservation and emission reduction, the company has formulated the "EnergyConservation and Emission Reduction Management System", "Energy Management Operation Guideline", "Greenhouse GasManagement Regulations" and other systems to integrate the concept of environmental protection into the company's dailyproduction and operation. At the same time, the company actively designs green products, builds green factories and promotesgreen o?ces to implement the concept of energy saving and low carbon by action.

Green product design

The company's R&D departmentis responsible for research anddevelopment of new technology andnew material application, so as toreduce material waste and save costs.

Upgrade environmentalprotection technology

We control the structure and usageof product design, and according tothe di?erent positioning of customerneeds, we reduce excessive design onthe basis of ensuring product functionand service life, and promote greenpackaging; we make considerationof product renovation and productrecycling after use by customers toreduce the impact of product disposalon the environment.

Design consideration ofenvironmental factors

Strict quality control of products toensure that plastic materials and oilsused in products meet the requirementsof laws and regulations of exportingcountries; control and testing of toxicand harmful substances for materialsused at di?erent stages to reducepollution of the environment; use ofeasily degradable materials to replacethe original materials to achieve thepurpose of environmental protection.

Use of environmentally friendlyraw materials

Green Products

Management systemEnvironmental Protection

Tenfold

Power SectionSeiko

Logistics DepartmentPackaging

Finance Department

EHS Management Committee

DirectorDeputy Director

Business Department

Optimize product packaging to help environmental protectionCaseIn response to customers' concerns about green packaging, thecompany innovated and optimized product packaging, not only toachieve a more re?ned packaging and a better consumer experience,but also to avoid the use of adhesives through the structural designof one piece. In addition, the new packaging does not require a ?xedliner, which not only saves the use of display box materials, but alsomaximizes the number of boxes and improves the energy e?ciencyduring product transportation.

The company takes environmental factors into fullconsideration at the product design and R&D stage, activelylaunches green products, continuously improves productenvironmental attributes, and continuously develops newenvironmental processes, thereby reducing material waste,environmental pollution and energy consumption.

The Company has established comprehensive environmental management and occupational health andsafety management systems and procedures, including not only macro-level guiding policies, such as theEnvironmental Protection Policy, but also micro-level practical processes, such as the Hazard Identi?cation andRisk Assessment Control Procedures and Waste Management Control Procedures. The company has obtainedISO 14001 environmental management system certi?cation, and in 2020, the company applied for the extensionof the validity of the standardized safety production certi?cate, which has been approved by the relevantauthorities.

The company was certi?ed as a Level3 enterprise for safety productionstandardization

The company was awarded ISO 14001environmental management systemcerti?cation

Environmental, Social and Governance Report 2020

EHS Management

3738EHSvi杭州巨星科技股份有限公司 2020年度ESG报告

Active upgrading of equipment and strict control of environmental pollution

Using electric forklifts to reduce exhaust pollution

Case

In response to the national concern and requirements for environmental protection,GreatStar Industrial actively upgrades equipment and renovates facilities to strictlycontrol environmental pollution to the minimum. In 2020, for exhaust gas, thecompany installed VOC (UV photolysis + activated carbon) treatment equipment,which has an organic exhaust gas adsorption rate of 99%, and the exhaust gas isdischarged at a height of 15 meters after adsorption, e?ectively reducing exhaustgas pollution. For wastewater, the company operates a wastewater treatmentsystem in the factory, which has a wastewater treatment capacity of 20 tons/day,and the wastewater treatment e?ect reaches the national standard level 3.

In order to help the country ?ght a tough battle for pollutionprevention, the company has formulated scienti?c wastemanagement control procedures, chemical managementprocedures and other related regulations to strictly controlpollution, minimize the impact of its business operations onthe environment, and realize green production.

In accordance with the principles of low-carbon energyand clean production, the company promotes the greentransformation and upgrading of the factory and realizes greendevelopment by building rooftop solar energy, using electricforklifts and other initiatives.

 Green Production

Green Plant

The domestic sewage of theenterprise is pretreated, and theproduction wastewater is treatedby the self-built sewage treatmentstation and meets the requirementsof the "Integrated WastewaterDischarge Standard", then enters themunicipal sewage pipeline.

Waste water

The paint room is equipped with VOC treatment equipment, which neutralizes the paintsmell through UV photolysis + activated carbon, and regularly replaces the activatedcarbon.Waste gas

Implement full process monitoringand compliant disposal of solidwaste, control and reduce thegeneration and emission of solidwaste at source, and entrust quali?edunits to carry out disposal work; buildhazardous chemical warehousesfor hazardous waste, and dispose ofthem in accordance with nationallegal requirements and stricter thanlocal area limits.

Hazardous chemicals warehouses shall be built for hazardous wastes, and the disposal shall meet the requirementsof national laws and be stricter than local limits

Solid waste

4Three Wastes4

Disposal

Focusing on energy saving and emission reduction, andcarrying out facility upgrades

Case

Promote Green O?ce

Advocate green lighting, water andelectricity saving, paperless o?ce,encourage paper reuse and travel bypublic transportation, and enhance theawareness of energy conservation andenvironmental protection of companyemployees

Advocate environmentalprotection concepts

Continuously improve OA system and?nancial software, promote electronicapproval and realize paperlesscollaborative o?ce; upgrade video andtelephone conference systems to reduceo?cial business travel

Application of low-carbon system

Purchase printers and copiers that canprint on both sides, and encourageemployees to print and copy on bothsides; property management personnelcheck regularly every day, and turno? lights, water dispensers and otherelectrical equipment in unmanned o?ceareas in time

Administrativelogistics support

The company actively promotes the popularization ofgreen o?ce awareness throughout the company aroundthe idea of advocacy, system upgrades and coordinatedsupport of various departments.

 Green OIce

Hazardous waste

Environmental, Social and Governance Report 2020

In order to implement the "Thirteenth Five-Year Plan forRenewable Energy Development" proposed by the NationalDevelopment and Reform Commission and help the countryestablish a clean and low-carbon modern energy system,GreatStar Industrial actively promotes the construction of

4.3MW rooftop photovoltaic power generation projects. The

commissioning of the project has increased the company'sclean energy utilization rate while reducing carbonemissions.

In order to solve the problem of exhaust pollution caused bytraditional forklifts, in 2020, GreatStar Industrial promotesthe use of electric forklifts. Compared with traditionalforklifts, electric forklifts not only reduce the use of non-renewable energy, but also e?ectively improve the air qualityof warehouses.

EHS Management

3940EHSvi杭州巨星科技股份有限公司 2020年度ESG报告

Occupational HealthOccupational health and safety is not only closely related tothe well-being of employees, but also vital to the company'sattraction and retention of talents, e?cient managementof human resources, and smooth business development. In2020, the company actively improved the "Employee Healthand Safety Management Procedures" and other systems toensure the safety of all employees by improving workplacesafety and employees' safety protection capabilities.

The robotic arm device of the grinding link

Occupational health action system

The general manager's KPI assessment index is linked to thework injury index of the responsible plant

The person in charge must publicly explain the situation of thework injury and issue a related report

Report immediately after a work-related injury, and the companywill be responsible for the medical expenses of the injuredworkers and provide nutrition subsidies, and wages will be paidas usual during the treatment period

Organize safety training, conducting regular ?re drills andelevator escape drills

Provide workers with protective equipment such as protectiveshoes, masks, and earplugs for free

Clearing supervision responsibilities

Standardizing the handling of accidents

Preventing safety risks

Creating a safe environment

The plant manager clearly supervises the workshop director,the workshop director supervises the workshop shift manager,and the shift manager is responsible for supervising theissuance and wearing of labor protection equipment

Oganize medical examinations for workers every two yearsand conducte inspections for occupational diseases, includingnoise and powder, for workers in special jobs

Use robotic arms instead of labor to engage in high-risk andhigh-pollution jobs; install exhaust emission equipment toreduce the occurrence of workers' lung diseases

Renovate the workplace to reduce noise damageCaseIn order to reduce the impact of noise pollution on the health ofworkers, in 2020, GreatStar Industrial used rock wool ?re-proof andsound-proof materials for closed management in areas with loudnoises, and distributed earplugs to all workers, adding a secondprotective barrier to protect hearing, e?ectively reducing the risk ofhealth damage to workers.

Upgrade automation to reduce work injury rate

Carrying out Gre drills to improve employees5 emergency response capabilities

Case

In order to reduce the rate of work-related injuries, GreatStarIndustrial invested 100 million yuan in the transformation ofautomatic warehouses and used unmanned vehicles to intelligentlycon?gure storage positions. The warehouse can store 30,000 pallets,with a throughput of 300 pallets per hour, which increases theoriginal e?ciency by 4 times and the storage capacity by 3-4 times. In2020, the company applied the automated heat treatment process toe?ectively control product quality and improve the performance ofexisting products, while increasing the utilization rate of automatedequipment and reducing the incidence of accidents.

In order to improve employees' awareness of ?re safety and enhancethe emergency evacuation capabilities required to respond tosudden ?res and other disasters, the company launched a ?re escapedrill on May 21, 2020. The exercise process includes explanationsof precautions, activation of emergency plans, orderly organizationof evacuation, explanations on the use of ?re-?ghting appliances,?re-?ghting exercises, etc., so as to strengthen employees' safetyawareness and enhance their emergency escape capabilities.

Improve employee safety protection capabilities

Ensure the safety of the workplace

The company is committed to improving employees' safety awareness and protection capabilities. From 2019 to 2021, thecompany headquarters and Haining plant conducted 12 targeted ?re drills in two di?erent environments, day and night, toimprove the ability of employees to respond to emergencies.

The company regards the safety of the workplace as the basis for protecting the occupational health and safety of employees. Inorder to protect the health of employees, the company actively optimizes the working environment and reduces the rate of workerinjuries and accidents.

Environmental, Social and Governance Report 2020

EHS Management

4142I?‘0B¤杭州巨星科技股份有限公司 2020年度ESG报告

Number of employees

people

Number of people covered by training

person-times

7,376

5,097

Ful?llment of Employees

The company attaches great importance to the trainingof employees, takes talent strategy as the focus ofcorporate development, and provides employees with fairdevelopment opportunities and diversi?ed education andtraining opportunities. The company also uses employeesatisfaction surveys, employee communication and othermethods to understand employees' demands, care foremployees' lives, and truly make employees feel thecompany's warmth and care.

4344I?‘0B¤杭州巨星科技股份有限公司 2020年度ESG报告

Compliance EmploymentThe company strictly abides by the "Labor Law", "Women's Rights Protection Law" and other relevant laws and regulations, andpays employees' pension, medical care, unemployment, work-related injury, maternity and other social insurances on time.The company conducts employee compensation management in strict accordance with the relevant provisions of the NationalLabor Contract Law. The average salary of employees in 2020 is higher than the provincial average salary standard of ZhejiangProvince in 2020. The employees' normal and weekend overtime wages are calculated in full according to regulations, and acomprehensive working hour system is implemented for some positions.

Sta? salary

structure

Front-line positions: According to the overtime pay system, hourly wages and overtimewages are calculated in accordance with the national labor law and policiesManagement positions: Calculated based on the combination of ?xed salary andperformance salary

Employeewelfare system

Cover all aspects of clothing, food, housing and transportation, provide free dormitoriesor rental subsidies for related employee groups, and pay various social insurances foremployees on time, so that employees can live and work in peace and contentmentPay attention to the health management of employees, arrange annual physicalexaminations for employees every year, and provide green channels for employees to seekmedical treatmentCare for employees’ families, help employees’ children to solve school problems, ande?ectively solve employees’ worries

Humanistic Care

The Company always respects and protects the personal rights of employees. In order to better serve employees and enhance theirsense of belonging and corporate cohesion, the Company conducts employee satisfaction surveys on an annual basis. The surveytakes various forms such as questionnaire ?lling, online scoring, and seminars, and aims to collect and consider employees’recti?cation opinions and suggestions on food, housing, and transportation.

Establish Adequate Communication Channels

In addition to conducting employee satisfaction surveys, the Company has also established a variety of employee communicationchannels to understand employee needs, listen to their opinions, improve employee enthusiasm and creativity, and enhance thecore competitiveness of the Company, laying a foundation for building a harmonious enterprise.All departments set upcentral liaison o?cers andadministrators to be responsiblefor understanding businesscommunication issues at work

Correspondents are set upin each center to report oncompany events, activities, teambuilding activities or importantnews; correspondents selectoutstanding employees topublish related articles in the“Monthly One Star” column,and publish them through theCompany’s monthly magazine,newspapers and other channels

Hold a symposium with newemployees who have been on thejob for a week to understand theintegration of new employees,and feed back opinions andsuggestions from new employeesto department leaders forprocessing in a timely manner

Build A Warm Working Environment

On the basis of understanding the needs of employees, the Company continues to improve the lives of employees, and strivesto allow employees to work in a good environment, improve their enthusiasm for work, and ensure the healthy and stabledevelopment of the Company.

The Company’s ?ve-star restaurant provides employees with three sumptuous meals in themorning, afternoon and evening, and provides monthly subsidies for employees’ working meals.

Mother and baby room is set upto provide convenience for femaleemployees during breastfeedingperiod, and the “GreatStar ServiceStation” is set up to provideemployees with daily needs.

On the anniversary and birthday ofthe employees, they will receive agratitude email from the Company,take the initiative to care for themand help them get to know andfamiliarize with the Company assoon as possible, so that the newemployees can feel the warmhumanized service.

Mailing holiday condolences forthe families of employees basedabroad to thank the support andunderstanding of employees’families.

by gender

Unit（person）Unit（person）

Unit（person）

by degree

by employee professionalcomposition category

4,795

5,133

1,011

2,581

100%100%

1,448

4,584

male

social insurance coverage rate

college education

salesperson

technical secondaryschool and below

technical sta??nancial o?ceradministrationsta?

female

labor contract signing rate

bachelor degree andabove

production sta?

Environmental, Social and Governance Report 2020

Achievement of Employees

4546I?‘0B¤杭州巨星科技股份有限公司 2020年度ESG报告

Hold Rich Cultural and Sports ActivitiesThe Company also organizes various forms of activities and competitions as a way to enhance the team spirit and sense ofbelonging of employees and to create a workplace atmosphere of happy work and happy life.

Establishment of clubs or associationssuch as soccer, tennis, mountain-climbing,photography, skiing, book club, etc.

The mountain-climbing club summited Zhejiang’s ?rst peak -Baisanzu Huangmaojian

Set up sta? home, reading room and gymnasium,and organize the GreatStar Culture Festival, theGreatStar Trail Walk and the Fun Games every year

Organize diversi?ed sta? team building activities,such as team building activities in Hubei ThreeGorges, Changbai Mountain, Moganshan, etc.

Award ceremonies for employees who haveworked continuously for ten or twenty years withgold and silver medals to thank them for theirhard work; organize special farewell ceremoniesfor retired employees to thank them for theirsilent dedication

Employee DevelopmentThe Company insists on the talent concept of “people-oriented”, establishes a mechanism of four-level talent ladder, fair andscienti?c 361 performance evaluation mechanism, PM dual-channel talent development mechanism and motivating salarydistribution mechanism, establishes a mechanism of sta? growth and enterprise development, clari?es the direction of sta?development, and builds a long-term win-win interest community between the enterprise and the employees. Career development channel

Employee Career Development Path

The Company conducts annual and semi-annual appraisal of employee performance in January and July each year.It combines corporate values with employee performance to encourage employees to actively strive for performanceimprovement, and the assessment results are ranked in 361 parallel job performance results within the department.

After new employees are hired, the Company will determine the career development direction of employees,that is, position them as management (M) talents or professional (P) talents. After that, the Company will rank theemployees and position them as junior talents, professional talents, backbone talents or senior talents. There is a parallelrelationship between management positions and professional positions. P1-3 (junior positions) can be promotednaturally, P4 and above need to be evaluated based on the annual 361 evaluation results; positions below supervisorsneed to be reviewed by the human resources department, and PM positions need to be reviewed by the committee, andmanagers, directors and important technical personnel need to be evaluated and countersigned by the PM managementcommittee and president.

361 performance evaluation mechanism

PM rank promotion mechanism Tug-of-war of the Company’s cultural festival

Award ceremony for employees

Organize exciting group building activities

Environmental, Social and Governance Report 2020

Achievement of Employees

4748I?‘0B¤杭州巨星科技股份有限公司 2020年度ESG报告

Education and TrainingThe Company has established a mature talent echelon training system, and regularly organizes basic skills training for eachposition and comprehensive quality training for management personnel, so that employees can e?ectively improve their overallprofessionalism on the basis of doing their own work. At the same time, we regularly carry out the training of director-level andmanager-level reserve talents to continuously deliver high-quality talents for the Company’s development, so as to realize thecommon growth of employees and the Company, and build a harmonious and stable labor-management relationship.

Provide DiverseStaF Training

 The Company established theGreatStar Academy and internaltrainers team to actively carry outemployee training

Invite external lecturers to teach inthe Company, or organize employeesto go to external institutions fortraining

The Company organizes professional skills training The Company organizes professional skills training

 GreatStar AcademyIn order to implement the talent training principle of "internal trainingas the main focus, and external introduction as a supplement", theCompany established the Academy in 2019, which is responsiblefor internal training work. The academy is composed of a team ofprofessional internal trainers, and through the four talent trainingprograms of "Star, Moon, Eagle and Integration", it focuses on talentladder building, management quality improvement, professionalskills improvement and team building, and provides multi-leveland diversi?ed training for employees to lay the foundation for theCompany's sustainable development.

TrainingProgram ofGreatStarAcademy

Carry out training on company structure, corporate culture,business introduction, management system, IT softwareoperation, etc. for new employees

Carry out leadership training programs for managers and reservecadres

Regularly carry out training on product knowledge, businessprocess, quality awareness, o?ce software, etc. for businessdepartment personnelOrganize multiple open classes every month and irregularly organizespecial training in English interest classes, PS software, etc.Academy Training ModelIntegration ProgramIn order to help new employees betterintegrate into the working environment,the Company carries out a two-day"Integration Program" training for newemployees every month.

In order to improve the cohesion of theemployee team and help employeesunderstand the corporate culture indepth, the Company periodically carriesout training in "Integration TrainingCamp" according to the needs of thedepartment.

Star ProgramSirius Program: It aims to cultivatedirector-level reserve cadres and providea solid reserve force for the Company'stalent gradient construction.Venus Program: It aims to train reservecadres at the manager level. At the endof 2020, the program has carried outtwo phases, each of which lasted for 10months.w3xSpecial Open Class

The Company organizes 3-4 open classes every month. In 2020, the Companycarried out a total of 18 public classes, which was taught by the internal teachersof GreatStar Academy.

 Carrying out special training camps to improve the cohesion of the staF teamCaseStarting in October 2017, the Company opened the "Special Training Camp forIntegration" and organized 7 sessions of team training for one year for employees,including: 1617 Special Training Camp for College Students and Special TrainingCamp for Foreign Procurement Elites, R&D center innovation and mutual win specialtraining camp, quality control center excellence training camp, Toolmall teamactivation special training camp, ?nancial center integration and enterprising specialtraining camp, functional department team collaboration special training camp.The development of Special Training Camp for Integration strengthened thecohesion of the departments and also allowed employees to understand the essenceof corporate culture in the activities.The excellent trainer training

Each department conducts phasedinternal sharing meetings and seminars,and senior employees share experience;conduct researches on the trainingneeds of each department, and form thesecond annual training plan

Encourage employees to participatein special training such as ?nancialtraining, board secretary training,skills training, etc.; assist employeesto conduct job title evaluation everyyearExternal training

Internal trainingSpecial training

Training sessions

people

Participating in the training

Training hours in total

5,097

14,397

Selected outstanding talents

Environmental, Social and Governance Report 2020

Achievement of Employees

4950MJ[0?杭州巨星科技股份有限公司 2020年度ESG报告

Equivalent amount of materials donated to customersduring the COVID-19

ten thousand yuan

Develop Hand in Hand

GreatStar actively ful?lls its responsibilities andobligations as a corporate citizen, works withstakeholders to promote community development,participates in community construction, continuesto build harmonious relationships with stakeholders,and continuously contributes to society.

5152MJ[0?杭州巨星科技股份有限公司 2020年度ESG报告

Win-win Cooperation

The Company is committed to the construction of global supply chain management, establishing good and win-win partnershipswith thousands of suppliers around the world, building a global supply chain management system with cost advantages,sustainable development, high e?ciency and safety with China as the core, to ensure that the Company responds quickly tocustomer needs and provides excellent services.During the COVID-19, the Company made every e?ort to help domestic suppliers and internal factories to solve the shortage ofmasks; the supplier was exempted from compensation requirements for delayed delivery.

The Company upholds the concept of openness, transparency and win-win cooperation with suppliers, and grows together withthem. The Company has formulated the "Supplier Management System" and continuously improved the procurement systemand process, and in addition to the merits of the products and services provided by suppliers, the business ethics, environmentalimpact, labor rights, occupational health and safety indicators of suppliers are incorporated into the management system; signedthe "Supplier Quality Target Agreement" with quali?ed suppliers to strictly control product quality and product safety, to ensurethat the products and initiatives of suppliers to meet the Company's requirements.In addition, the Company has established a fair and impartial supplier evaluation system and formulated the "Procedures forEvaluating the Social Responsibility of Suppliers and Subcontractors". At the same time, price control is strictly implemented, andfor medium and large projects with relatively high amounts, the procurement department opens the bidding system and links alldepartments to jointly verify prices.

Access assessment

Quality assessmentQuality control

Grading management

RectiGcation and improvement

Elimination and withdrawal

On-site assessment of supplier factories, including dimensions such as product qualitysystem, anti-terrorism (mainly for U.S. customers), workers' labor rights and interests (such as?ve insurances and one pension, temporary labor policy, prohibition of child labor, etc.), laborprotection measures, environmental impact such as environmental assessment certi?cate,pollutant discharge, ?re prevention and premises safety, ?nancial status, tax rating, businessscope on business license, etc.

Quality control center has a laboratory totest the heavy metal content of purchasedproducts and conduct random checks fromtime to time to ensure that all indicators ofproducts are quali?ed; quality control centerand purchasing department are responsiblefor the quali?cation rate (96% to 98%) andon-time delivery of products respectively

The procurement department, QA qualityinspection department and QC qualityinspection department will formulate thefactory inspection standards accordingto the requirements of the quality controlcenter, and issue quality assessment reportsfor suppliers based on the factory siteassessment

The QA department of the Company,in cooperation with the procurementdepartment, will help the supplier factoriesto improve and rectify the quality problemsthat often occur; the quality controlcenter will go deeper into the downstreamfactories and secondary suppliers to carryout investigation and evaluation every year,giving priority to the bottom 50 suppliers toprovide recti?cation advice

According to the quality assessmentof products and the assessment ofenvironmental protection, employeeresponsibility and social responsibility,suppliers are classi?ed into three grades ofA/C/E; quali?ed suppliers will be includedin the Company's OA system

The supplier who has entered the inventory butstill does not meet the standard after recti?cation iseliminated

The Company insists on transparent procurement, always upholds the cooperationpurpose of integrity and transparency in the process of external cooperation, andresolutely opposes any bribery and other illegal and irregular behavior. At thesame time, the Company is fully online in the ERP system for procurement, productmanagement and other functions, and through the control of authority and approvalprocess, each responsibility is implemented to the person and speci?c to the post.The Company signs the "Supplier Integrity Commitment" with each new supplier, inwhich detailed constraints are imposed on commercial bribery and correspondingpenalty mechanisms are set up for violations of relevant regulations. The Companyencourages all employees and suppliers to strictly supervise and vigorously reportviolations of the Company's regulations, and opens up various complaint andreporting channels such as project telephone, public email, fax, etc. If the situationis con?rmed to be serious after investigation, the supplier quali?cation will becancelled.

Supplier Management

Transparent Procurement

SupplierManagementMechanism

Environmental, Social and Governance Report 2020

Develop Hand in Hand

5354MJ[0?杭州巨星科技股份有限公司 2020年度ESG报告

Activate the volunteer mechanism toattract a large number of enthusiasticemployees to join the Company'sdaily epidemic prevention andcontrol actions, to ensure that theCompany achieves zero quarantineand zero infection

Normalized preventionand control

Fighting the Epidemic TogetherCommunity CharityAt the beginning of 2020, the sudden outbreak of COVID-19 epidemic touched the hearts of Chinese people and the internationalcommunity. In order to help the society to smoothly tide over the di?culties in the special period, the Company set up anemergency leading group for epidemic prevention and control, dispatched resources to contribute, insisted on not stoppingproduction and not reducing production, and did a good job of both epidemic prevention and control and resuming work andproduction.

The Company insists on giving back to the society to obtain wealth, and is committed to becoming an enterprise with a high senseof social responsibility.

In 2020, the sudden outbreak of the COVID-19 epidemic brought unexpected impact to the production and operation of theCompany and the development of the industry. In order to deal with the epidemic e?ectively and guard the health of employees,the Company reacted quickly and set up an epidemic prevention and control leading group headed by Mr. Qiu Jianping, thechairman of the board, to coordinate and plan all epidemic prevention and management work.

In 2007, GreatStar established the "GreatStar Foundation" and formulated the "Articles of the GreatStar Foundation" to regulate theoperation process of the foundation. It provide scertain ?nancial assistance to employees of the Company and its subsidiaries whohave worked for more than 12 months and who have su?ered great di?culties for themselves or their family members, such assu?ering from major illnesses, and ?nancial di?culties due to family ?nancial di?culties. Up to now, the foundation has provided

2.163 million yuan in assistance to 77 employees of the Company. Among them, it has donated 100,000 yuan to the Zhejiang

Disabled Welfare Foundation. The standardized operation of the foundation and the Company's contribution to social welfarehave demonstrated the Company's image of actively ful?lling its social responsibilities, and has been recognized by all sectors ofsociety.The Company foundation attaches great importance to the support and assistance of education. With its own advantages, theCompany has become the ?rst Zhejiang University MBA practice education base, and has held the "GreatStar Cup" CreativeHangzhou Industrial Design Competition with well-known domestic colleges and universities for ?ve consecutive years, activelypromoting the healthy development and progress of educational public welfare undertakings.Call for employees to work at homethrough network, and formulate inadvance guidelines for returning towork, workstation setting, meetings,meals, shuttles, accommodation andother work after resuming on-siteo?ce

For Hubei employees who cannotresume work on time due toepidemic prevention and control, wearrange for them to work at homeand give them material care andspiritual con?dence.

The Company pays close attention to the development of the global COVID-19 epidemic, and strives to provide support andassistance within its capacity for the prevention and control of the epidemic.

 ScientiGc Resumption of Work and Production

Response Actions to the COVID-19 Epidemic

Public Welfare Management

Educational Support

 Love Helps Fight the Epidemic

Inheriting care and helping Lin5an Primary School in pairs for eight consecutive yearsCase

Aid overseas to help resume work and productionCaseAs the ?rst provincial key foreign trade enterprise in Jianggan District to resume work and production, the Company gave full playto its advantages in global resource scheduling and launched a large-scale donation activity of "GreatStar Is with You" to donateWORKPRO masks and PREXISO temperature guns to overseas customers in which the anti-epidemic materials was worth morethan 5 million yuan. At the same time, the Company actively looks for epidemic prevention materials and resources, and hascumulatively sold more than 150 million US dollars of epidemic prevention materials to overseas customers, helping the globalepidemic prevention and control and the orderly recovery of the global manufacturing industry.

 Continuous public welfare, and full eFort to Gght the epidemicCase

Since the COVID-19 epidemic, the Company has sent masks to the front-line sanitation workers, tra?c police, public securitypersonnel, and migrant workers in Hangzhou to express its condolences. Employees use their rest time to actively participatein anti-epidemic volunteer activities in neighborhoods and communities, and assist communities in personnel investigation,temperature measurement, and standing guard. The Company's e-commerce platform "Toolmall.com" also actively participatesin the material dispatching operation, ensuring that masks, protective clothing and other anti-epidemic supplies are delivered tofront-line medical institutions and front-line medical sta? in a timely manner, demonstrating the role of leading manufacturingenterprises in Hangzhou , and actively ful?lling social responsibilities.

EIcient and rapidresponse

Caring for specialemployees

Purchase epidemic preventionmaterials such as masks anddisinfectant solution throughmultiple channels, and use them foremployee protection and return towork reserves as needed; activelycontact the relevant governmentsand arrange for employees to takegovernment-organized high-speedtrains or buses

Strictly guard the safety

of returning to work

Environmental, Social and Governance Report 2020

Since 2012, GreatStar has carried out assistance activities toelementary schools in Lin'an City on Children's Day every year, and ithas lasted for 8 years. The Company continues to improve the learningconditions and environment for teachers and students by sendingboxes of children's day gifts and school supplies to the children,as well as donating sports equipment, books and other items, andbrings hope to the children in the mountains. In 2020, even if a?ectedby the epidemic, the Company continued to create a better learningenvironment for school teachers and students, and contribute tosupporting the education of the next generation with practical supportin order to continue and pass on love and care for these children.

Develop Hand in Hand

56杭州巨星科技股份有限公司 2020年度ESG报告55jwr?zc?

Indicator Index

GRI 102;General Disclosure

GRI 101;Basis

Page numberCommentaryIndicator number and description

1. Reporting principles

2. Use GRI standards for sustainability reporting

3. Make a statement related to the use of GRI standards

P0102-1 Organization name102-2 Activities, brands, products and services102-3 Headquarters location102-4 Business location102-5 Ownership and legal form102-6 Markets served102-7 Organization scale102-8 Information about employees and other workers102-9 Supply chain102-10 Signi?cant changes in the organization and its supply chain102-11 Early warning principles or guidelines102-12 External initiatives102-13 Membership of the association

P03

P13-14

P03

P51

P04

102-14 Statement by Senior Decision Makers102-15 Key impacts, risks and opportunities

P01-02

P04102-16 Values, principles, standards and codes of conduct102-17 Mechanisms for ethical suggestions and concerns

P18

P18102-18 Governance structure102-19 Authorization102-20 Responsibility of executive management for economic, environmental andsocial issues102-21 Consultations with stakeholders on economic, environmental and socialissues102-22 The composition of the highest governance body and its committees102-23 Chairman of the highest governance body102-24 Nomination and selection of the highest governance body102-25 Con?ict of interest102-26 The role of the highest governance body in formulating purpose, values andstrategies102-27 The collective understanding of the highest governance body102-28 Performance evaluation of the highest governance body102-29 Identi?cation and management of economic, environmental and socialimpacts102-30 E?ect of risk management process102-31 Review of economic, environmental and social issues

P13-14

P09

P10

P01

P15

P09

1.Organizational Overview

2.Strategy

3.Ethics and Integrity

4. Governance

GRI 102;General Disclosure

GRI 201;EconomicPerformance

Page numberCommentaryIndicator number and description

102-32 The role of the highest governance body in sustainability reporting102-33 Communication of important concerns102-34 Nature and total number of issues of major concern102-35 Remuneration Policy102-36 The process of determining remuneration102-37 Involvement of stakeholders in the remuneration decision process102-38 Annual total compensation ratio102-39 Annual total salary increase ratio

P09

P10

P09

102-45 Entities covered in the consolidated ?nancial statements102-46 De?ne report content and topic boundaries102-47 List of Substantive Issues102-48 Information restatement102-49 Report changes102-50 Reporting period102-51 Date of most recent report102-52 Reporting cycle102-53 Contact information for issues related to this report102-54 Statement of reporting compliance with GRI standards102-55 GRI Content Index102-56 External assurance

P09

P65

P55-65

102-40 List of stakeholder groups102-41 Collective Bargaining Agreement102-42 Identi?cation and selection of stakeholders102-43 Stakeholder Participation Policy102-44 Main topics and concerns raised

P10

103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods

P09

201-1 Economic value directly generated and distributed201-2 Financial impacts brought about by climate change and other risks and opportunities201-3 Obligatory ?xed bene?t plans and other retirement plans201-4 Financial subsidies granted by the government

P05

5. Stakeholder Participation

1. Management Method Disclosure

2. Special Disclosure of Issues

4. Governance(continued)

6. Reporting practice

Environmental, Social and Governance Report 2020

Indicator Index

58杭州巨星科技股份有限公司 2020年度ESG报告

GRI 202;Market Performance

GRI 203;Indirect EconomicImpact

GRI 204;Procurement Practice

GRI 205;Anti-corruption

GRI 206;Unfair Competition

GRI 207:

Tax AFairs

Page numberCommentaryIndicator number and description

103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods202-1 The ratio of the standard starting salary level wage to the local minimum wage based on gender202-2 Proportion of senior executives hired from local communities103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods

103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods

P51

103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods

P09

P18、P52

P52205-1 Operation points that have undergone a corruption risk assessment205-2 Communication and training of anti-corruption policies and procedures 　205-3 Con?rmed incidents of corruption and actions taken103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods 　　

207-1 Tax management methods207-2 Tax management, control, and risk management207-3 Participation of stakeholders and tax-related issues management207-4 Country Report

206-1 Legal proceedings against unfair competition, antitrust and antitrust practices

204-1 Proportion of purchase expenditure from local suppliers

203-1 Infrastructure Investment and Supporting Services203-2 Signi?cant indirect economic impact

P54

P09

1. Management Method Disclosure

2. Special Disclosure of Issues

1. Management Method Disclosure

1. Management Method Disclosure2. Special Disclosure of Issues

2. Special Disclosure of Issues

1.Management Method Disclosure

2.Special Disclosure of IssuesGRI 301;Materials

GRI 302;Energy

GRI 303;Water Resources

GRI 304;Biodiversity

Page numberCommentaryIndicator number and description

103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods301-1 Weight or volume of materials used301-2 Recycled feed used301-3 Recycled products and packaging materials103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods

P09

P36

P09

P37

P38 103-1 Explanation of substantive topics and their boundaries 103-2 Management method and its components 103-3 Evaluation of management methods

103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods

302-1 Energy consumption within the organization 6302-2 Energy consumption outside the organization 8302-3 Energy intensity 10302-4 Reduce energy consumption 11302-5 Reduce energy demand for products and services

303-1 Water withdrawal by source303-2 Water sources that are signi?cantly a?ected by water intake303-3 Water intake303-4 Displacement303-5 Water consumption

304-1 Operation points owned, leased, and managed by the organization in or adjacent to protected areas and biodiversity-rich areas outside the protected areas304-2 Signi?cant impact of activities, products and services on biodiversity304-3 Habitats protected or restored304-4 Species that have been included in the IUCN Red List and the National Protected List in the habitats of the areas a?ected by the operation

1. Management Method Disclosure

2. Special Disclosure of Issues

1.Management Method Disclosure

2. Special Disclosure of Issues

Environmental, Social and Governance Report 2020

jwr?zc?

Indicator Index

60杭州巨星科技股份有限公司 2020年度ESG报告

GRI 305;Emission 

GRI 306;Sewage and Waste

GRI 307;EnvironmentalCompliance

GRI 308;Supplier EnvironmentalAssessment

Indicator number and description

103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods

P09P36　

P09P37　

P09　

P37　

P09P43　305-1 Direct (Scope 1) Greenhouse Gas Emissions305-2 Energy Indirect (Scope 2) Greenhouse Gas Emissions305-3 Other indirect (Scope 3) greenhouse gas emissions305-4 Greenhouse Gas Emission Intensity305-5 Greenhouse gas emission reduction305-6 Emissions of Ozone Depleting Substances (ODS)305-7 Nitrogen oxides (NOX), sulfur oxides (SOX) and other major gas emissions103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods306-1 Total amount of discharged water classi?ed by water quality anddischarge destination306-2 Total waste classi?ed by type and treatment method306-3 Major leak306-4 Hazardous waste transportation306-5 Water bodies a?ected by drainage and/or runo?103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods

103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods

P09P51P51P51

307-1 Violation of environmental laws and regulations

308-1 New suppliers screened using environmental standards308-2 The negative impact of the supply chain on the environment and the actions taken

1. Management Method Disclosure

2. Special Disclosure of Issues

1. Management Method Disclosure

2. Special Disclosure of Issues

1.Management Method Disclosure

2. Special Disclosure of Issues

GRI 401;Employment

GRI 402;Labour Relations

GRI 403;Occupational healthand safety

GRI 404;Training and Education

Indicator number and description

103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods401-1 New hires and employee turnover rate401-2 Bene?ts provided to full-time employees (excluding temporary or part-time employees)401-3 Parental leave

P43-44

103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods402-1 Minimum notice period for operational changes103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods

P09P39403-1 Occupational health and safety management system403-2 Hazard identi?cation, risk assessment, and event investigation403-3 Occupational health services403-4 Occupational health and safety a?airs: the participation, consultation and communication of workers403-5 Worker occupational health and safety training403-6 Promotion of workers' health403-7 The prevention and mitigation of occupational health and safety impacts directly related to business relationships403-8 Workers recovered by the occupational health and safety management system403-9 Occupational injury403-10 Work-related health issues

P39P39P39P35P40P43P39-40P39-40P06P40103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods404-1 Average number of training hours per employee per year404-2 Employee Skills Upgrading Program and Transition Assistance Program404-3 Percentage of employees who regularly receive performance and career development appraisal

P09P47-48

P47

1. Management Method Disclosure

2. Special Disclosure of Issues1. Management Method Disclosure

1. Management Method Disclosure

2. Special Disclosure of Issues

1.Management Method Disclosure

2. Special Disclosure of Issues

Environmental, Social and Governance Report 2020

Page numberCommentaryPage numberCommentary

jwr?zc?

Indicator Index

62杭州巨星科技股份有限公司 2020年度ESG报告

GRI 405;Diversity and EqualOpportunities

GRI 406;Anti-discrimination

GRI 407;Freedom of Associationand CollectiveBargaining

GRI 408;Child Labour

GRI 409;Forced or CompulsoryLabor

GRI 410;Security Practice

Indicator number and description

405-1 Diversi?cation of governance institutions and employees405-2 Ratio of basic salary and remuneration for men and women

P10、P43

103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods406-1 Discrimination incidents and corrective actions taken103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods

103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods

407-1 Operational sites and suppliers where freedom of association and collective bargaining rights may be at risk

408-1 Operating sites and suppliers with signi?cant risk of child labor incidents

409-1 Operations and suppliers with signi?cant risks of forced or compulsory labor incidents

410-1 Security personnel trained in human rights policies or procedures

1. Management Method Disclosure

2. Special Disclosure of Issues

GRI 411;Indigenous Rights

GRI 412;Human RightsAssessment

GRI 413;Local Communities

GRI 414;Supplier SocialAssessment

GRI 415;Public Policy

Indicator number and description

103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods411-1 Incidents involving violations of the rights of indigenous peoples103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods

103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods

P54

103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods

P09P51

103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods

412-1 Operation points subject to human rights review or impact assessment412-2 Employee training on human rights policies or procedures412-3 Important investment agreements and contracts that contain human rightsclauses or have undergone human rights review

413-1 Operation points with local community participation, impact assessment and development plan413-2 Operation points that have actual or potentially signi?cant negative impacts on the local community

414-1 New suppliers screened using social standards414-2 The negative impact of the supply chain on society and the actions taken

P51

415-1 Political donation

1. Management Method Disclosure

2. Special Disclosure of Issues

103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods

P43-P45

1. Management Method Disclosure

Environmental, Social and Governance Report 2020

Page numberCommentaryPage numberCommentary

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Indicator Index

64杭州巨星科技股份有限公司 2020年度ESG报告

GRI 416;Customer Health andSafety

GRI 417;Marketing and Logo

GRI 418;Customer Privacy

GRI 419;Socio-economicCompliance

Indicator number and description

103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods416-1 Assessment of the health and safety impact of product and service categories416-2 Violations involving the health and safety impact of products and services103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods

103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods

1103-1 Explanation of substantive topics and their boundaries103-2 Management method and its components103-3 Evaluation of management methods

417-1 Requirements for product and service information and labeling417-2 Violations involving product and service information and labeling417-3 Violations involving marketing

418-1 Substantiated complaints related to violations of customer privacy and loss of customer information

419-1 Violation of laws and regulations in the social and economic ?elds

1. Management Method Disclosure

2. Special Disclosure of Issues

1. Management Method Disclosure

2. Special Disclosure of Issues

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Environmental, Social and Governance Report 2020

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