ENVIRONMENTAL, SOCIAL ANDGOVERNANCE REPORT2024
Stock Code: 002668Abbr. TCL Smart HomeGuangdong TCL Smart Home Appliances Co.,Ltd.
Response to Climate ChangeGreen ProductionGreen CultureGreen Industry Chain
R&D and InnovationProduct Quality and SafetyDigital and Intelligent TransformationCustomer Service
Responsible Supply ChainSocial Public Welfare
Employee EmploymentTalent DevelopmentCare for EmployeesOccupational Health and Safety
Party Building LeadershipCorporate GovernanceLegal Compliance and Risk ManagementAnti-corruption and Business ethicsInformation Security and Privacy Protection
0102
Implement GreenDevelopment
Uphold ProductResponsibility
Building aHarmonious Society
Create a HappyWorkplace
CorporateGovernance
About the ReportMessage from the Boardof DirectorsAbout TCL Smart HomeESG Management
Outlook for the FutureAppendix
Contents
About the Report
Reporting Period
Scope of Organization
Report Data Description
Standards of Reference for Report
Report Reliability Assurance
Access to the Report
Revision of Previous Reports Information
This is an annual report covering the period from January 1, 2024 to December 31, 2024 (hereinafter referred to asthe "Reporting Period"). To improve the completeness of the report, some of the data is beyond the above range.
The scope of the Report covers Guangdong TCL Smart Home Appliances Co., Ltd. and its principal subsidiaries.For ease of presentation and perusal, " TCL Smart Home ", "the Company", "we" and "us" in the Report refer toGuangdong TCL Smart Home Co., Ltd. and its principal subsidiaries below, unless otherwise specied.
All data and examples used in this Report are derived from the Company's ocial documents, statistical reportsas well as summaries and statistics on the performance of responsibilities.
This Report is prepared in accordance with the Self-Regulatory Guidelines for Listed Companies No. 17 –Sustainability Reporting (Trial) issued by the Shenzhen Stock Exchange (hereinafter referred to as the "SZSEGuidelines"). It also draws reference from internationally recognized standards and frameworks, including theGlobal Reporting Initiative (GRI)Sustainability Reporting Standards(2021), the UN Sustainable DevelopmentGoals (SDGs), the Ten Principles of the UN Global Compact (UNGC), the International Financial ReportingStandards – Sustainability Disclosure Standards issued by the International Sustainability Standards Board (ISSB),and the European Sustainability Reporting Standards (ESRS).
The Company guarantees that the content of this Report does not contain any false records or misleadingstatements.
You can download this report and obtain more information about the Company's sustainability and ESGpractices by visiting our ocial website: https://www.tclsmarthome.com/.
None.
Full Name of Principal SubsidiariesShort Name
TCL Home Appliances (Hefei) Co., Ltd.Hefei Home AppliancesHoma Appliances Co., Ltd.Homa Appliances
2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
About the Report
Message fromthe Board of Directors
In the wave of industrial transformation driven by the deep integration of articial intelligence and the Internet ofThings, TCL Smart Home keeps pace with the times, adhering to its vision of becoming a global leader in smarthousehold appliances. It rmly promotes its globalization strategy, takes AI smart home appliance as the directionof development, and realizes the interconnection, collaborative operation and self-learning optimization of homeappliance products through scientic and technological innovations, so as to bring forward-looking scientic andtechnological experiences and smart and healthy life for the users, and to promote the further development of theindustry through science and technology.In the face of the deepening evolution of the global consensus on sustainable development, TCL Smart Homeactively fulfills its ESG (environmental, social, and governance) responsibilities, establishing a sustainabledevelopment model that is environmentally friendly, socially benecial, and governed with excellence. We arefully aware that the creation of corporate value is not only reected in the growth of business performance,but also lies in the responsibility for global environmental governance, the continuous contribution to socialwelfare, and the continuous improvement of the corporate governance system.To build a green smart manufacturing system and fulll our dual carbon commitments. This year, we havefocused on creating a green smart manufacturing system that spans the entire value chain, promoting greentransformation in all aspects from procurement, research and development, production to transportation.In terms of product design, we integrate the environmental impact of the entire product lifecycle into theproduct research and development process, continuously improving product energy eciency and developingenvironmentally friendly, green, and low-carbon products. In production, we actively promote the transition togreen energy, continuously increasing the proportion of clean energy use by strengthening the constructionof projects such as distributed photovoltaic and photovoltaic energy storage in our parks. In 2024, TCL SmartHome's self-consumed photovoltaic power generation reached 21,170,382 kWh. At the same time, we drivethe development of a circular economy and reduce the environmental impact of TCL Smart Home's productionand operations through process innovation and improving the comprehensive utilization rate of waste. We alsoextend green practices to stakeholders such as employees and suppliers, driving the development of a greenecological industry.
To deepen strategic layout and lead industry transformation. This year, we have invested in artificialintelligence technology, continuously exploring the breadth and depth of technology. The Company haslaunched multiple high-capacity embedded refrigerators, and our "Molecular freshness preservationtechnology+" and "TCL-40℃ crystal lm deep-freezing freshness preservation technology" have been appraisedby the China National Light Industry Council and the China General Chamber of Commerce as reaching theinternational leading level. In the field of washing machines, we have developed an innovative super drumwashing machine, achieving a washing eciency ratio of up to 1.2. In 2024, TCL Smart Home's R&D investmentreached 643 million yuan, and a total of 2,167 patents were granted,To empower talent development and undertake social responsibility. TCL Smart Home focuses onemployee growth, has established a comprehensive rights and interests protection and career developmentsystem, created a diverse and inclusive workplace environment, and provided competitive developmentopportunities for employees. During the reporting period, the total number of employees in the companywas 14,923, and the number of employee training sessions reached 3,440. At the same time, TCL Smart Homeactively fulfills its corporate social responsibility, contributing to the construction of a harmonious societythrough tangible compassion and concrete actions. In 2024, TCL Smart Home organized a total of 34 employeevolunteer activities to convey corporate warmth and contribute to the harmonious development of society.To improve the governance structure and consolidate the foundation for development. This year, we havecontinuously optimized the corporate governance structure and internal management system, implementedmulti-level risk management strategies, and ensured the compliant and ecient operation of our business.The Company has strengthened communication with investors and stakeholders, improved the transparency ofinformation disclosure, promoted stable operations, facilitated sustainable development, and set an excellentgovernance model for the industry.Looking ahead, we also welcome an important milestone in international cooperation - TCL Group ociallysigned an agreement with the International Olympic Committee to become an Olympic Global Partner. TCLSmart Home will provide innovative technologies and product services, including refrigerators and washingmachines, for the Olympic Games, further enhancing our brand influence. We will continue to practice theconcept of sustainable development, rmly promote the globalization strategy, accelerate green and intelligentinnovation, and leverage technology to drive industry transformation.
2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
Message from the Board of Directors
About TCL Smart Home
Company Prole
Development Milestones
Strategic Vision
Guangdong TCL Smart Home Appliances Co., Ltd. (hereinafter referred to as the "Company") was established in 2002 and waslisted on the Shenzhen Stock Exchange in April 2012 under the stock code 002668.SZ. In May 2021, the Company's controllingshareholder changed to TCL Home Appliances Group, marking the beginning of a new phase of development. The Companyis committed to becoming a world-leading smart home appliance enterprise, rmly promoting the globalization strategy,taking AI smart home appliance as the direction of development, and realizing the interconnection, collaborative operationand self-learning optimization of home appliance products through scientic and technological innovations, so as to bringforward-looking scientic and technological experiences and smart and healthy life for the users, and to promote the furtherdevelopment of the industry through science and technology.The Company has two core production and operation bodies, Hefei Home Appliances and Homa Appliances, its mainproducts include refrigerators (including freezers) and washing machines. As of 2024, the Company has ranked No. 1in China's refrigerator exports for 16 consecutive years and No. 1 in exports to Europe for 17 consecutive years. Its TCL-branded washing machines have consistently ranked among the top three in domestic sales within the industry.
Looking ahead, TCL Smart Home is committed to becoming a world-leading smart home appliance enterprise, firmlypromoting the globalization strategy, taking AI smart home appliance as the direction of development, and realizing theinterconnection, collaborative operation and self-learning optimization of home appliance products through scientic andtechnological innovations, so as to bring forward-looking scientic and technological experiences and smart and healthy lifefor the users, and to promote the further development of the industry through science and technology.The subsidiary, Hefei Home Appliances, unswervingly shaping the "technology-driven, vitality-rst" organizational core. Ithas established the core strategic path of "brand-leading value, global eciency operation, with a focus on mid-to-high-end breakthroughs", and persistently pursues excellence in product quality and performance experience, while rapidlybuilding and enhancing its core competencies with a precise focus on key regions and niche markets, striving to stepcondently into the rst tier of the industry.The subsidiary, Homa Appliances, continuously practices its unique strategic positioning as a "Global ProfessionalRefrigerator ODM Supplier", focusing on refrigerator and freezer businesses and adhering to a globalization-drivenoperating model. It continues to deepen its expertise in frost-free technologies and promotes the extensive applicationof intelligent manufacturing, providing global customers with refrigerator and freezer products with both top quality andhigh-cost performance, guided by a relentless pursuit of professional excellence.
Homa Incorporation
Operation of the Company's rst factory
Annual sales exceeded 10 million units
Homa owned 9 production sites
Homa Group realized net income of 424 million yuan from attributable sources, reversing the loss year on year
Homa Appliances' global sales volume exceeded 100 million units
Homa Appliances: High-end Air-cooled Refrigerator Intelligent Manufacturing Base
Acquired TCL Home Appliances (Hefei) Co., Ltd., to further expand the refrigerator/washing machine business
the Company was ocially renamed Guangdong TCL Smart Home Appliances Co., Ltd.
Sales volume exceeded 1 million units for the rst time
Operation of Homa's second factory
Listed on the Shenzhen Stock Exchange
Annual sales volume exceeded 5 million units for the rst time
Operation of Homa's third factory and accessories sub-factory
Development and launch of the very rst all-new air-cooled side-by-side refrigerator FF2-66
Homa Appliances' advent of the intelligent dual-inverter technology and single-system with multi-temperaturecontrol technologyBiggest Chinese refrigerator exporter to Europe for the 10th consecutive year
Ranked No. 1 Chinese refrigerator exporter to Europe for the rst time
Launch of the rst "Made by Homa" product
The controlling shareholder of Homa Appliances was changed to TCL Home Appliances Group Co., Ltd, and theactual controller was changed to Mr. Li Dongsheng.
Homa held the groundbreaking ceremony of the smart manufacturing base for high-end air-cooled refrigerator
Annual revenue exceeded RMB 10 billion
Full termination of the Fintech business and disposal of all related assets
2002200320052008-20092012
20132018201920202021
2022
2023
2024
2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
About TCL Smart Home
Stakeholder Communication
TCL Smart Home has established a comprehensive mechanism for stakeholders' communication, providing diversified communicationchannels to ensure ecient interaction and information sharing with all parties. Through multiple channels such as the ocial website, the"Interactive Easy" section of the Shenzhen Stock Exchange, telephone, and email, the Company regularly collects, understands, and respondsto the demands of stakeholders, actively promoting a transparent and open communication environment. At the same time, the Companyworks together with stakeholders to jointly promote the achievement of sustainable development goals and continuously optimize businesspractices and social responsibility.StakeholdersConcernsCommunication ChannelsFeedback and PracticeGovernmentand RegulatoryAuthorities
Compliant operation andrisk management
Anti-corruption andbusiness ethics
Corporate governance
Response to climatechange
Government ocial website,announcement release
Consultation
Seminar, forum
Operate in good faith and compliancewith the law, and optimize internal controland compliance management systems
Regularly carry out information disclosure
Promote energy transformation andenergy-saving technological upgrading,and develop green products
Shareholdersand Investors
Corporate governance
Compliant operation andrisk management
ESG governance
General meeting of shareholders,performance briengs
Roadshow, on-site reception
Telephone, Shenzhen StockExchange Interactive Easy, email,etc.
Optimize internal control and compliancemanagement systems
Respond to investor inquiries andregularly disclose information
Customers
Product quality andsafety
Customer service
R&D and innovation
Responsible marketing
Information security andprivacy protection
Product launch events, industryexhibitions, etc.
Online customer service,telephone, email
Strengthen technological innovation andenhance product quality
Conduct customer satisfaction surveysand demand research, continuouslyimprove the customer service experience,and enhance product quality
Enhance customer privacy protection
Suppliers andPartners
Supply chainmanagement
Anti-corruption andbusiness ethics
Supplier exchange meeting
Supplier training
Standardize the procurement process,improve the supplier managementsystem, and strengthen dailycommunication with suppliers
Conduct supplier training andenvironmental and social assessments
Employees
Employee rights andprotection
Diversity and equality
Occupational health andsafety
Employee training anddevelopment
Employee congress, morningbriengs, regular meeting
Employee training andcommunication
Employee feedback mailbox
Establish a labor union, improve theemployee communication and exchangemechanism, and ensure smoothcommunication channels
Strengthen occupational health andsafety management
Establish a scientic and clear humanresource management system andpromotion mechanism
Regularly organize team building orcultural and sports activities
Community
Social development
Response to climatechange
Pollution and wastemanagement
Public benet activities
Environmental activities
Assist social welfare and carry outvolunteer activities
Develop green production and strengthenthe management of three wastes
ESG Management
ESG Governance
TCL Smart Home is committed to integrating ESG management principles into allaspects of its production and operations. With a proactive approach to addressingESG risks and challenges, the Company continuously enhances its ESG practicesand promotes ESG awareness across the organization, contributing the strength ofChinese enterprises to achieving the 2030 United Nations Sustainable DevelopmentGoals.TCL Smart Home actively supports the ESG initiatives of TCL Industries and promotesthe implementation of ESG management across the organization. Hefei HomeAppliances, as a core member, has joined the TCL Industries ESG Committeeand serves as an industry representative in the Committee Office, responsiblefor executing Hefei Home Appliances' ESG strategy, information disclosure, andimplementation. Homa Appliances has established its own ESG Committee,which is specifically tasked with overseeing and advancing the execution of theCompany's ESG policies.
2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
ESG Management
Materiality Analysis
Issue Inventory and Impact Assessment
Assessment Procedure
Assessment Method
Financial importance for the Company
High importanceLow importance
Importance to the Company
Energy managementResponse to climate changeGreen products
Anti-corruption and business ethicsCorporate governanceInformation security and privacy protectionESG GovernanceCompliance and Risk ManagementCircular economy and resource utilization
Water resource management
Environmental management systemProtection of employees' rights and interests
Responsible marketingCommunity development
Diversity and equal opportunities
Pollution and waste management
Product quality and safety
R&D and innovationOccupational health and safety
Customer serviceSupply chain managementEmployee training and development
ESG
TCL Smart Home carried out a materiality analysis to identify key topics across environmental, social, and governance aspects in a scienticand accurate manner. The analysis was conducted with reference to both domestic and international policies, industry standards, and peerpractices. Through questionnaires, interviews, and other forms of engagement, the Company maintained in-depth communication with keystakeholders to fully understand their expectations and demands regarding TCL's sustainable development, thereby providing strong supportfor strategic planning and decision-making.Based on the judgment criteria for impact materiality and financial materiality as outlined in the Shenzhen Stock Exchange'sGuidelines, and referring toGRI 3: Material Topics and International Financial Reporting Sustainability Disclosure Standard No. 1 -General Requirements for Sustainability-Related Financial Information Disclosure (IFRS S1), TCL Smart Home Appliances updated itsassessment methodology and carried out double materiality assessment, integrating a nancial perspective into the impact materialityassessment.
During the reporting period, TCL Smart Home Appliance conducted double materiality assessments through online questionnaire surveysand in-depth interviews, engaging with the internal management, customers, suppliers, government agencies, industry associations, andother stakeholders globally, to ensure the scientic and comprehensiveness of the assessment.
Based on TCL Smart Home Appliances' ESG background and business reality, and in accordance with authoritative domestic and internationalstandards and assessment methods, combined with stakeholder communication results, and on the requirement set by the ShenzhenStock Exchange's Guidelines, TCL Smart Home identied 22 key topics across environmental, social, and governance dimensions, including7 environmental topics, 10 social topics, and 5 governance topics, providing important guidance and reference for the Company's futuresustainability strategy, performance management, and information disclosure.
EnvironmentSocialGovernance Environmental management system Response to climate change Energy management Pollution and waste management Water resource managementCircular economy and resourceutilization Green products
Product quality and safety R&D and innovation Customer service Supply chain management Responsible marketingProtection of employees' rights and
interests Diversity and equal opportunities Employee training and development Occupational health and safety Community development
Corporate governance Anti-corruption and business ethicsInformation security and privacyprotection Compliance and Risk Management ESG Governance
Evaluate and rank the impact and financial materiality of issues based on theCompany's situation, industry development trends, and authoritative domestic andinternational studies.
Identify and screen Company's ESG issues, analyze the impacts, risks, andopportunities related to relevant ESG issues.
Highlight the issues of higher materiality during the reporting period after review andconrmation by the Board of Directors.
Analyze the key stakeholder concerns based on the Company's business operations,products and services, value chain, and industry trends, and interpret domestic andinternational sustainability standardsAnalyze the Company's activitiesand business relationships
Assess and conrm issue
materialityDevelop an issue inventory
Review and report
StepKey Work Content
Conduct a comprehensive assessment of both positive and negative impacts, actual and potential eects, and evaluatethe likelihood and extent of these impacts. This in-depth assessment examines whether the Company's ESG-related issueswill have a signicant impact on the environment, economy, and society.The Company comprehensively evaluates the likelihood of impact and the degree of financial impact over short-term,medium-term, and long-term time horizons. The Company thoroughly analyzes the impact of ESG issues on the Company'sbusiness model, operations, and nancial indicators across multiple dimensions.Note: The Company denes its time horizons as short-term (up to and including 1 year), medium-term (from 1 to 5 years inclusive), and long-term (beyond 5 years).
Impact materiality:
Financial materiality:
2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
ESG Management
Impact, Risk, and Opportunity of Materiality TopicsTopics
Scope ofimpact
Impact
cycle
ImpactRiskOpportunityResponseto climatechange
Full valuechain
Short-term,medium-term andlong-term
By optimizingmanufacturing processes,utilizing renewableenergy, designing low-energy products, andpromoting green logisticsto drive the regulation ofgreenhouse gas emissionsacross the upstream anddownstream value chains,we can contribute to theachievement of the national"dual carbon" goals.
Physical risks: Extremeweather leads towork stoppages andproduction halts,resulting in decreasedproduction capacityand thus reducedrevenue; long-termclimate change leadsto rising energy pricesand increased operatingcosts;Transition risks:
the development,investment, andimplementation ofclean technologieslead to short-term costincreases. Developedcountries have set"carbon taris", requiringthe Company to increaseinvestment in greenproducts to cope with"green barriers" ininternational trade
Energy conservation
and emissionreduction: Developgreen operationaltechnologies andemission reductionmeasures, increase theuse of clean energy, andreduce operational costs.Market competitiveness:
Continuously promoteproduct innovation,develop green andecient products andservices to attract morecustomers.Policy incentives: Thegovernment providessubsidies or taxincentives related to"dual carbon" goals,and the Company canleverage these policiesto promote low-carbontransformation andbusiness growth.Environmentalmanagementsystem
Self-operation
Short-term andmedium-term
The Companyhas establisheda comprehensiveenvironmentalmanagement systemand actively obtainedISO 14001 environmentalmanagement certication,eectively reducing thedamage to the surroundingecosystem caused by thedischarge of wastewater,waste gas, and solid waste,and lowering the risk ofnatural environmentalpollution.
Compliance and
cost risks: If the
environmentalmanagement systemis not sound or notimplemented properly,the Company mayface regulatorypenalties and nesdue to environmentalpollution; domesticand internationalenvironmental policiesare facing a tighteningtrend, which maylead to systematictransformation with highcosts for the Company ina short period of time.Reputation risk: If theCompany is punished forenvironmental violations,it may lead to pressurefrom public opinion anda decline in customertrust.
Not involved
Topics
Scope of
impact
Impactcycle
ImpactRiskOpportunityEnergymanagement
Self-operation
Short-term,medium-term andlong-term
By optimizing the energyutilization system andimproving energy eciency,the Company has reducedtheir dependence on non-renewable energy, therebymitigating the damage tothe ecological environmentcaused by energy extractionand utilization.
Cost risk: Productionequipment that is highlydependent on traditionalenergy may lead toescalating energy costsif it is not updated in atimely manner.Production stability
risk: The lack of eective
energy managementand planning capabilitiesmay lead to powersupply stability issuesduring extreme weather,aecting corporateproduction work.
Cost reduction
and eciencyenhancement: Actively
promoting energy-savingrenovation projects andeliminating inecientand high-energy-consumption equipment,and thus providingthe Company withopportunities to improveenergy eciency andreduce operating costs.Enhancing enterprise
resilience: By
substituting traditionalenergy with greenenergy, reducingdependence ontraditional energy, andmitigating the impactof fossil energy priceuctuations on corporateoperating costs.Pollutionand wastemanagement
Self-operation,community
Short-term,medium-term andlong-term
Establishing scientic andreasonable methods forcollecting, processing,and disposing of wastecan help reduce the itsdamage on ecosystems andcontribute to the protectionof biodiversity and humanhealth.
Compliance risk: Thelocal governments wherethe Company operatesboth domestically andinternationally have clearlegal and regulatoryrequirements for wastedisposal. Failure tomeet these standardsmay result in nes orsanctions, aecting theCompany's operationsand business expansion.Cost risk: The costs ofwaste disposal andresource recycling maybe high, and thesecosts may furtherincrease when stricterenvironmental policiesare implemented.
Not involved
Waterresourcesmanagement
Self-operation
Short-term,medium-term andlong-term
By optimizing water useeciency and implementingfull lifecycle managementof water resources, theCompany can alleviateregional water scarcityissues, reduce the impact onthe ecological environment,and provide clean andsustainable water resourcesfor local communities.
Risk of resource
scarcity: In regions with
scarce water resources,excessive water usageor wastage may leadto insucient watersupply, aecting projectoperations and futuredevelopment planning.
Not involved
Circulareconomyand resourceutilization
Self-operationanddownstreamvalue chain
Medium-term andlong-term
By promoting the recyclingof electronic wastes andpackaging materials, wehave reduced environmentalpollution caused bylandlling and incineration,facilitated ecient resourcereuse, and eectivelyminimized resource waste.
Not involvedCost reduction and
eciency enhancement:
Through resourcerecovery and recycling,the Company has theopportunity to reduce rawmaterial costs, enhanceproduction eciency,and improve resourceutilization.
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ESG Management
Topics
Scope ofimpact
Impactcycle
ImpactRiskOpportunity
Greenproducts
Full valuechain
Short-term,medium-term andlong-term
By promoting the research,development, andproduction of energy-saving, environmentallyfriendly, and healthyhousehold appliances,the Company can reduceenergy consumption andcarbon emissions during theproduct lifecycle, therebyminimizing environmentalimpact. The promotionof green products helpsconsumers developenvironmentally friendlyconsumption habits andcontributes to the greendevelopment of society.
Cost risk: Developinggreen technologies andgreen products requiressignicant resourceinvestment, increasingthe Company's R&Dcosts.Supply chain
collaboration risk:
Creating green productsthroughout their entirelifecycle requiresclose collaborationwith suppliers,increasing supply chainprocurement costs anddelivery risks
Market competitiveness:
Product design thatincorporates ESG principlescan help the Companyobtain policy support andgreen nancial resources.
Product qualityand safety
Full valuechain
Short-term,medium-term andlong-term
High-quality and safeproduct can directly enhancecustomers satisfaction andtrust, indirectly promotingconsumer support forsustainable development.Furthermore, safe productsproduced in accordancewith industry standards helpreduce social issues causedby product defects, such asharm to user health.
Reputation risk: Productquality issues maylead to lawsuits, nes,and damage to theCompany's reputation.
Market competitiveness:
By implementing high-standard product safetymanagement to ensureproduct quality andsafety, brand value andmarket share can beenhanced.
R&D andinnovation
Self-operationanddownstreamvalue chain
Short-term,medium-term andlong-term
Through research anddevelopment innovation, weaim to provide consumerswith products that are morelow-carbon, intelligent,and user-friendly, therebypromoting technologicaladvancement anddriving overall industrydevelopment.
Not involvedMarket competitiveness:
Through continuousinnovation, the Companycan maintain its leadingposition in technologyand the market, setindustry benchmarks,and attract morestrategic partners andinvestors, therebyenhancing the overallcompetitive advantageof the enterprise.Cost reduction
and eciencyenhancement: Newtechnologies andprocesses driven byinnovation can improveresource utilizationeciency, reduceoperating costs, andprovide support for thesustainable developmentstrategy of the enterprise.
Customerservice
Self-operationanddownstreamvalue chain
Short-term,medium-term andlong-term
By establishing anintelligent service platformand optimizing after-salesmanagement processes,we have providedconsumers with a moreecient and personalizedservice experience, therebyenhancing user satisfactionand brand loyalty.
Reputation risk:
Inadequate after-salessystems may lead todelayed handling ofcustomer complaintsor service failures,potentially damagingthe brand image andcausing customer loss.
Market competitiveness:
Ecient and high-qualityafter-sales servicemanagement can forma brand competitiveadvantage, help theenterprise further expandits customer base, andenhance customerloyalty.
Topics
Scope ofimpact
Impact
cycle
ImpactRiskOpportunity
Supply chainmanagement
Upstreamvalue chainand Self-operation
Short-term andmedium-term
By formulatingcomprehensivemanagement measures,processes, and relatedsystems for supplierintroduction, evaluation, andsupervision, we ensure theintroduction of high-qualityand compliant suppliers. Atthe same time, the Companyalso provides suppliertraining to help suppliersimprove operationaleciency, build a mutuallybenecial supply chainsystem, enhance industrycompliance, and promotethe healthy development ofthe industry.
Operational risk:
Potential ESG issues inthe supply chain (suchas forced labor, conictminerals, corruption, etc.)may lead to instability inservice supply, aectingthe normal operation ofthe Company.
Cost risk: Fluctuations in
raw material prices causeuctuations and risks inthe Company's supplychain costs.
Industry ecosystem
building: By enhancing
the compliance and ESGstandards of the supplychain, the enterprisecan attract more high-quality partners.Systematic supply chainmanagement contributesto the sustainability ofproduct and serviceprovision, promotinga stable and ecientsupply chain ecosystem.
Responsiblemarketing
Downstreamvalue chain
Short-term andmedium-term
By strictly adhering toadvertising compliancerequirements andimplementing responsiblemarketing strategies,we can help safeguardconsumer rights andinterests, enhance socialtrust in marketing activities,and ultimately promote thehealthy development of theoverall market.
Cost and compliance
risks: Non-compliantadvertising content maylead to legal litigationand regulatory penalties.Reputation risk:
Consumer criticism ofirresponsible marketingpractices may aect theCompany's reputation.
Market Competence:
Responsible marketingcan assist businesses inshaping a sustainablebrand image, enhancingcustomer trust andloyalty, and ultimatelydriving sales and marketshare growth.
Protection ofemployees'rights andinterests
Self-operation
Short-term,medium-term andlong-term
The enterprise providelegal and reasonable rightsand interests protectionas well as a good workingenvironment, enhancingemployees' sense ofhappiness and belonging,and promoting socialemployment and laborstability.
Market and reputationrisks: Violations of
human rights and laborrights and interests (suchas forced labor) maypose compliance risksand aect the reputationand image of theCompany.Internal risk: Lackof protection foremployee rights andinterests may lead toemployee turnover risks,reducing the Company'sproductivity.
Market and reputation:
By fostering a positivecorporate culture and acaring environment, theCompany can enhancecorporate cohesionand employee loyalty,further boosting socialrecognition of theircorporate image.
Diversityand equalopportunities
Self-operationandcommunity
Short-term,medium-term andlong-term
By establishing acomprehensive DEImanagement system, amore inclusive and openworking environment hasbeen created within theenterprise, which helpsattract and retain diversetalents, further promotinginnovation and teamcollaboration.
N/ACorporate innovation:
A diverse and versatiletalent team helpsenhance corporateproductivity andcreativity, contributing tobusiness growth.
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2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
ESG Management
Topics
Scope ofimpact
Impactcycle
ImpactRiskOpportunityStatraining anddevelopment
Self-operation
Short-term,medium-term andlong-term
Through a fair promotionmechanism andprofessional training,the Company eectivelyenhance the vocational skillsof its employees, therebycontributing to the overallimprovement of talentquality in society.
Internal risks: Animperfect training systemor uneven resourceallocation may lead toinsucient skill growthamong talents andobstacles to promotion,resulting in internaltalent loss and reducingcompany productivity.
Market competitiveness:
The growth of employeeskills helps to betteradapt to the rapidlychanging businessenvironment andenhance the Company'smarket competitiveness.Talent Attraction:
By establishing acomprehensiveemployee developmentsystem, more high-quality talents canbe attracted to join,providing a solid talentbase for the Company'sdevelopment.Occupationalhealth andsafety
Self-operation
Short-term,medium-term andlong-term
By providing comprehensiveoccupational healthmanagement and regularsafety training, the incidenceof occupational diseasesand accidents has beeneectively reduced, therebyindirectly improving thequality of life of employees.
Safety risk: If safetymanagement is not inplace, it may lead towork-related accidents,resulting in employeecasualties and aectingthe normal operation ofthe enterprise.Health risk: Employeesmay be exposed toharmful factors suchas dust and noise,increasing the likelihoodof occupational diseases.Compliance risk:
Failure to comply withoccupational healthand safety regulationsin domestic and foreignoperational locationsmay lead to legalproceedings, nes, andaect the reputation andnancial status of theenterprise.
N/A
Communitydevelopment
CommunityMedium-
term andlong-term
Participating in publicwelfare activities such asassisting students andrespecting the elderly,improving the livingconditions of vulnerablegroups, and promotingsocial equity and stability.
N/AIndustry ecosystem
building and reputationenhancement: Byactively taking socialresponsibility, theCompany can furtherdeepen its connectionswith the communityand society throughpublic welfare activities,enhance its brand image,and create a favorablecommunity environmentfor their long-term stableoperation.
Corporategovernancesystem
Self-operation
Short-term andmedium-term
By establishing anecient, diversied, andprofessional corporategovernance system, thetransparency and credibilityof enterprise operationshave been enhanced,setting an industrybenchmark. This helpspromote the improvementof governance standardswithin the industry andfosters a favorable businessenvironment.
N/AMarket competitiveness:
By enhancinggovernance diversityand professionalism, theenterprise can establisha model corporate imagein domestic and foreignmarkets, attractingmore investmentand cooperationopportunities.
Topics
Scope of
impact
Impact
cycle
ImpactRiskOpportunity
Anti-corruptionand businessethics
Self-operation
Short-term andmedium-term
By promoting theimplementation of businessethics and anti-corruptionpolicies, we can helpmaintain market fairness,reduce the damage causedby corrupt practices tothe allocation of socialresources, advocatehonest cooperation, andpromote the developmentof a healthier businessecosystem.
Compliance, cost,
market, and reputationrisks: Violating business
ethics may lead tolegal and regulatoryrisks, resulting in legallitigation and a crisis ofpublic trust and causingnancial losses andloss of customers andpartners.
Market competitiveness:
A well-establishedbusiness ethicsmanagement systemcan ensure the stabilityof corporate compliance,increase the trust ofcustomers and partners,and facilitate long-termcooperation and protgrowth.
Informationsecurityand privacyprotection
Self-operationanddownstreamvalue chain
Short-term andmedium-term
By establishing acomprehensive privacyand data security system,we can fully safeguard theprivacy and data securityof customers and otherrelevant parties.
Technical risk: If theindustrial internet doesnot adopt encryptionsystems and relatedsecurity measures, therewill be network securityrisks, aecting theCompany's productionand operation.Compliance and
reputation risks:
Leakage of customerprivacy or data will bringrisks of violating laws andregulations, reducing theCompany's credibilityand aecting the imageof the enterprise.
Not involved
Compliantmanagementand riskmanagement
Self-operation
long-term
By establishing acomprehensive privacyand data security system,we can fully safeguard theprivacy and data securityof customers and otherrelevant parties.
Technical risk: If theindustrial internet doesnot adopt encryptionsystems and relatedsecurity measures, therewill be network securityrisks, aecting theCompany's productionand operation.Compliance and
reputation risks:
Leakage of customerprivacy or data will bringrisks of violating laws andregulations, reducing theCompany's credibilityand aecting the imageof the enterprise.
Not involved
ESGGovernance
Full valuechain
Medium-term andlong-term
By establishing asystematic ESG governanceframework, we aim toenhance the Company'soverall performance inenvironmental, social,and governance aspects,strengthen communicationand management amongall ESG stakeholders, andaddress the concerns ofvarious stakeholders.
N/AMarket opportunities:
Systematic ESGgovernance can enhancea company's marketappeal and capitalrecognition.Long-term cooperation:
Sound governance,stable operations, andeective and transparentcommunication withstakeholders help attractand establish long-termpartnerships.
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2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
ESG Management
SDG's Road Map
Ensure healthy lives and promote well-being for all
Ensure inclusive and equitable quality educationand promote lifelong learning opportunities forall
Achieve gender equality and empower allwomen and girls
Ensure access to aordable, reliable, sustainableand modern energy for all
Promote sustained, inclusive and sustainableeconomic growth, full and productiveemployment and decent work for all
promoting occupational health and safety at all productionand operation bases by regularly organizing medicalcheck-ups to protect employees' health and well-being.
Focusing on talent development, a multi-level employeetraining system has been established, with diversifiedtraining programs encouraging continuous learning.Leveraging cutting-edge technological strengths, study-oriented programs have been designed for student groupsof all ages, helping enhance scientific literacy throughimmersive experiences and inspiring deep interest andcuriosity in science and technology education.
Upholding zero tolerance for workplace discrimination,harassment, coercion, threats, and violence; promotingequal pay for equal work and fostering a diverse andinclusive workplace environment built on equality andrespect.
Deploying distributed photovoltaic and energy storageprojects to accelerate the transition to clean energy andprovide cost-eective clean energy for production.
Providing an equal and safe working environment,while offering sustainable growth opportunities throughsystematic training programs.
Goal 3Good health & well-being
Goal 4Quality Education
Goal 5Gender Equality
Goal 7Affordable & clean energy
Goal 8Decent work & economic growth
TCL Smart Home InitiativesTCL Smart Home Initiatives
GoalsGoalsSDGsSDGs
Build resilient infrastructure, promote inclusive
and sustainable industrialization a
Make cities and human settlements inclusive,
safe, resilient and sustainable
Ensure sustainable consumption and production
patterns
Take urgent action to combat climate change
and its impacts
Promote peaceful and inclusive societies for
sustainable development, provide access to
justice for all and build eective, accountable and
inclusive institutions at all levels
Strengthening talent recruitment and R&D investment,establishing multiple research centers to drive productinnovation, while actively engaging in industry dialoguesand technical exchanges to jointly advance industrialinnovation.
Actively engaging in community welfare initiatives,encouraging employee volunteerism, and contributing tothe development of harmonious, civilized, and sustainablecities and communities.
Eorts have been continuously made across raw materialsourcing, production, and logistics to advance thetransition toward clean energy. Environmentally friendlymaterials are prioritized, advanced green manufacturingprocesses are adopted, and recyclable packaging is usedto ensure environmental compliance throughout the entireproduct life cycle.Meanwhile, through technological innovation, TCL SmartHome minimizes environmental impact by reducing andrepurposing waste generated during production.Promoting carbon accounting, integrating climateresponse into business strategy, identifying climate risksand key countermeasures, developing green productionmodels, and enhancing full life-cycle management ofgreen products, with the aim of advancing comprehensiveclimate action.
Ensuring zero tolerance for corruption, upholding fairnessand transparency, and empowering employee voicesthrough open, inclusive communication channels.
Goal 9
Industry, innovation & infrastructure
Goal 11
Sustainable cities & communities
Goal 12
Responsible consumption & production
Goal 13
Climate action
Goal 16
Peace, justice & strong institutions
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2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
ESG Management
SDGs addressed in this chapter
Implement Green Development
DEVELOPMENT
TCL Smart Home takes action to protect the Earth, deeplyembedding the green concept into its core corporatedevelopment strategy. Through innovative technologies andefficient management practices, the Company actively reducesits carbon footprint and leads the green transformation in theindustry. From production to products, and from supply chain torecycling chain, the Company has established an environmentalprotection system covering the entire lifecycle, working togetherwith employees, partners, and users to stride towards asustainable future.
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2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
Implement Green Development2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
Implement Green Development
1920
Response toClimate Change
Governance
Strategy
Against the backdrop of a global joint response to climate change, the country has clearly setthe goals of "carbon peaking" and "carbon neutrality", and actively promoted strategic planssuch as ecological civilization construction. As an important participant in the industry, TCLSmart Home actively responds to the national "dual carbon" strategy, promotes green andlow-carbon innovation, and initiates exploration and practice in response to climate changethrough practical actions, contributing to the global green development and transformation.TCL Smart Home refers to the International Financial Reporting Standard on SustainabilityDisclosure (IFRS S1, S2) issued by the International Sustainability Standards Board (ISSB)and the A-share Guidelines for Disclosure of Sustainability Information, identifyingsignificant climate change-related risks and opportunities in corporate operationsfrom four dimensions: governance, strategy, risk management, indicators and targets.It promotes the Company's climate governance efforts and enhances the Company'sadaptability and resilience in response to the impacts of climate change.TCL Smart Home continuously improves its corporate climate governance structure,systematically promotes relevant management measures, and regularly disclosesgovernance progress and key performance indicators related to climate change responseto ensure the effectiveness and transparency of the management process. Specifically,Hefei Home Appliances and Homa Appliances, subsidiaries of TCL Smart Home, haverespectively established the greenhouse gas group to be responsible for the managementwork related to carbon emission verication.In the process of implementing the response to climate change, TCL Smart Home, centeredaround the strategic layout of TCL Industry, comprehensively fullls its commitment to greendevelopment from ve dimensions: establishing a green production model, optimizing theenergy management system, strengthening carbon emission management, improving theentire life cycle of green products, and building a green corporate culture.
We build a carbon management platform andestablish a carbon footprint inventory andverication and product carbon accounting system.
We carry out energy-saving renovations forinfrastructure and general production equipment,establish and improve the energy managementplatform and energy low-carbon managementframework.
By considering various aspects such as greendesign, green supply chain, green manufacturing,green packaging, green logistics, and greenrecycling, we aim to guide and drive the upstreamand downstream industrial chains to jointly achievelow-carbon development.An "energy conservation and carbon reduction"initiative has been launched for all employees, withthemed publicity and training activities focusing ongreen issues.
By strengthening the construction of distributedphotovoltaic power generation projects in the park,we aim to increase the proportion of clean energyutilization.Establish a greenproduction model
Strengthen carbonemission management
Optimize the energymanagement system
Improve the entire lifecycle
of green products
Build a greencorporate culture
DimensionSpecic measures
Physical Risk Categories, Impacts, and Countermeasures
TCL Smart Home continuously monitors risks and opportunities related to climate change, continuously strengthens its ability to identifyand assess the impact of risks, integrates risk management into its daily production and operation processes, and formulates relevantresponse strategies tailored to the Company's specic situation.
Category
of risks
Riskfactors
Scope of
impact
Impactcycle
Potential impactCountermeasures
Acute risksExtreme
weather (suchas rainstorm,extremeheat, ood,typhoon, etc.)
Full valuechain
Short tomediumterm
Extreme weather events such asrainstorms, floods, and typhoonstriggered by climate change maydamage the infrastructure andproduction equipment of TCLSmart Home's various productionand operation bases, directlyresulting in asset losses.
Extreme weather may affectemployee commuting, leadingto business obstruction orinterruption, as well as workstoppages and production halts,causing the Company to bearindirect benefits losses suchas legal liabilities for breach ofcontract and compensation.
When selecting a location for anew factory, full considerationshould be given to local climaticconditions and historical naturaldisasters to avoid unstable climaticfactors.
Track meteorological andemergency response warningsat any time, issue early warningnotifications, initiate emergencyplans, and implement relevantpreventive measures.
Identify potential asset damagecaused by climate risks andpurchase necessary insurance inadvance.Chronicrisks
Risingaveragetemperature,persistentdrought, etc.
Full valuechain
Short-term,medium-term, andlong-term
Rising temperatures or droughtmay increase TCL Smart Home'sexpenses on refrigerationequipment, electricity, and waterresource usage, thereby increasingoperating costs.
Continuous high temperaturesmay hinder outdoor workor increase health risks foremployees.
Continuous high temperaturesand drought may cause instabilityin production and power supply,affecting daily production andoperation.
Pay attention to the energystructure of the operationalregion and scientifically arrangeproduction plans.
Strengthen energy management,improve production efficiency, andreduce energy consumption ratio.
Strengthen the layout of newenergy within the factory, increasethe proportion of power supplyfrom new energy sources, andenhance the response capabilitiesduring peak electricity usageperiods and power rationingperiods in summer.Strengthen the special deploymentfor heatstroke prevention andcooling measures, and provideemployees with heatstrokeprevention and cooling facilities,equipment, and items.
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2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
Implement Green Development
Categories, Impacts, and Countermeasures of Transition RisksCategoryof risks
Riskfactors
Scope of
impact
Impact
cycle
Potential impactCountermeasuresPolicy andcompliancerisk
Tightening ofpolicies relatedto climatechange
Self-operation
Medium tolong term
Governments both domesticallyand internationally arecontinuously increasing theirrequirements for the supervisionand information disclosureof corporate climate changeactions. Capital markets andregulatory bodies are payingclose attention to TCL SmartHome's environmental andclimate performance. Failure tocomply with relevant policies andexchange information disclosurerequirements may lead tocompliance risks.With the continuous improvementof China's carbon trading market,if TCL Smart Home is included inthe carbon market management,it may increase the Company'soperating costs.
Actively monitor andfollow up changes inrelevant international andlocal government laws,regulations, and policies,and promptly adjustoperational strategies toensure compliance.Disclose timely climate-related information of theCompany, including keyinitiatives, performance,risk assessment results, andother crucial information.Strengthen energy-savingtechnological innovationand improve energyeciency. At the same time,increase the proportion ofgreen and clean energyusage to meet strictregulatory requirements.Technicalrisk
Cost of greentransformation
Self-operation
Medium tolong term
The capital market is graduallyincreasing its focus on the carbonfootprint of products. TCL SmartHome needs to identify advancedlow-carbon technologiesto reduce carbon emissionsthroughout the product's lifecycle,which may result in increasedcosts in the short term.
Integrate the concept ofgreen development into allaspects of product researchand development andproduction, and reduceunnecessary emissions andwaste during operations.We will continue topromote communicationand collaboration withour supply chain partners,and jointly drive theinnovative development ofenvironmental protectiontechnologies.Market riskThe awareness
of downstreamconsumergroupstowards greenproductshas beenenhanced
Self-operation
Short tomediumterm
With the increasing publicawareness of environmentalprotection and recognition ofgreen products, products bearingenvironmentally friendly labelsare more likely to gain consumeracceptance. If a company fails toeectively meet the demand forgreen and low-carbon products, itmay face the risk of losing marketshare.
Strengthen market research,timely understand consumerpreferences and demands,and actively develop greenand low-carbon productsbased on trends.
ReputationRisk
Stakeholderexpectations
Self-operation
Medium tolong term
If a company fails to respondappropriately to climate change,stakeholders such as customers,investors, the public, and themedia may form negativeopinions towards it, therebydamaging the company's brandvalue.
Strengthen stakeholdercommunication, promptlyrespond to requests fromall parties, and maintainopen and transparentinformation.
Identication of Climate-related Opportunities
Indicators andTargets
Risk Management
Establishing scientific emission indicators and targets is a crucial prerequisite forenterprises to control carbon emissions and quantify the effectiveness of carbonreduction. TCL Smart Home fully supports TCL Industry's dual-carbon goals of "strivingto achieve carbon peaking by 2030 and operational carbon neutrality by 2050". In 2024,TCL Smart Home conducted a greenhouse gas inventory and verication in accordancewith GHG Protocol and ISO 14064-1:2018, surveying greenhouse gas emissions within theCompany's operational boundaries. In 2024, Hefei Home Appliances completed carboninventory and verication covering scope 1,2 and 3, and obtained certication under theISO 14064 standard. During the reporting period, TCL Smart Home's total greenhouse gasemissions were 195,377.63 tons of carbon dioxide, with an emission strength of 10.64 tonsof carbon dioxide/million output value.
TCL Smart Home has established a comprehensive risk management framework centeredaround its business characteristics and internal and external risks. Leveraging the expertiseof internal and external experts, it systematically sorts out potential major climate impactsfrom multiple dimensions such as daily operations, value chain, and stakeholders,accurately identifying risk categories and impact scopes. Based on the assessment results,TCL Smart Home formulates targeted climate action plans, establishes a normalizedtracking mechanism, continuously optimizes workows, strengthens the Company's abilityto respond to climate risks, effectively enhances corporate resilience, and facilitates theCompany's stable operation.
PotentialOpportunities
Opportunity DescriptionPerformance in 2024
Consumerdemand for low-carbon products
People's awareness of climate change iscontinuously increasing, and customers'consumption attitudes are undergoinga transformation. Both businesses andindividual consumers are graduallyforming a trend of incorporating low-carbon environmental protection intotheir shopping considerations.
TCL Smart Home has always integrated the concept of greenand low-carbon into the entire product lifecycle, providingconsumers with green and low-carbon products fromdimensions such as research and development design,manufacturing, green logistics, and packaging. Hefei HomeAppliances has successively obtained honors such as "ThirdBatch of National-level Green Manufacturing Factories","Provincial Green Factory", "Provincial Green Products", and"National Industrial Internet Pilot Demonstration Enterprise".
Scope 1 16.33%
Scope 2 83.67%
31,904.75
163,472.88
Total greenhouse
gas emissions
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2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
Implement Green Development
GreenProduction
EnvironmentalManagement System
TCL Smart Home is committed to building an efficient, low-carbon, and sustainableproduction model, integrating environmental protection concepts into every aspect. Byimproving the environmental management system, strictly controlling pollution and waste,continuously optimizing energy eciency, and promoting the usage of clean energy, TCLSmart Home achieves the normalization and standardization of green and low-carbonproduction and operation, facilitating the harmonious coexistence of production and theenvironment.
The Company strictly adheres to theEnvironmental Protection Law of the People'sRepublic of Chinaand other relevant laws and regulations, continuously improvingvarious environmental management systems to minimize the impact of its productionand operation processes on the environment. To scientically implement environmentalmanagement systems and objectives and continuously enhance environmentalperformance, both Hefei Home Appliances and Homa Appliances, subsidiaries of TCLSmart Home, have successfully obtained ISO 14001 certification for their environmentalmanagement systems.
Hefei Home Appliances has established an Environmental Safety Committee andcollaborates with the Human Resources Development Department to oversee themonitoring and evaluation of key environmental management performance. They haveissued internal management systems such as theControl Procedure for Identificationand Assessment of Environmental Factorsand theControl Procedures for Operation ofEnvironmental Management System. By implementing four types of inspection procedures,including daily inspections, regular inspections, comprehensive inspections, and specialinspections, they have effectively ensured the continuous safety and stability of theproduction and oce environments.Homa Appliances and its branch factories perceive the principle of "making continuousimprovement in an environmentally-friendly and law-abiding way" as a key strategy inenvironmental protection. As such, they have established an environmental managementsystem under the leadership of the General Management Department with the jointparticipation of multiple departments. The General Management Department of HomaAppliances organizes an internal audit of the ISO 14001 environmental managementsystem annually to ensure a comprehensive investigation of potential hazards in theproduction and office environments and to strengthen the Company's environmentalmanagement level.
Total investmentinenvironmentalgovernance andprotection
362.60
ten thousand yuan
The Third Batch ofNational-level GreenManufacturing FactoriesProvincial Green FactoryProvincial Green ProductsNational Industrial InternetPilot DemonstrationEnterprise
Hefei Home Appliances ISO 14001System Certication
Homa Appliances ISO 14001System Certication
Environmental Compliance
To effectively test the effectiveness of daily environmental safety management andpromptly address management deciencies, TCL Smart Home formulates and implementsan environmental emergency response plan annually as planned. Its subsidiaries, HefeiHome Appliances and Homa Appliances, strictly adhere to the requirements of theEmergency Response Plan for Environmental Emergencies, complete the ling process withthe local environmental protection department, and conduct emergency drills on scheduleaccording to the plan content to ensure the eectiveness of the emergency response plan.In order to obtain external support in a timely manner when necessary, TCL Smart Homehas established a close emergency linkage mechanism with external government units,ensuring that the Company can achieve an organic combination of pre-managementand emergency response in the face of environmental risks, eectively addressing variouspotential environmental challenges.Hefei Home Appliances has formulated theEmergency Response and PreparednessControl Procedureto clarify the management process of emergency events. During thesame period, internal emergency drills for hazardous waste, wastewater, and exhaustgas were conducted to strengthen employees' awareness of environmental safetyrisk prevention and control. This ensures that employees can respond quickly, operateaccurately, and master emergency handling skills when facing sudden environmentalevents, thereby enhancing their ability to avoid risks.
Noleakage accidents
2024，TCL Smart Home
Nomajor environmental violationsNopenalties incurred for violationsof environment-related lawsand regulationsNolawsuits related toenvironmental regulations
On-site environmental safety management training for Homa Appliances
Emergency Management
Homa Appliances regularly conducts training sessions on environmental managementstandards for its employees. By promoting the environmental emergency responseplan system and the management process for pollutants and wastes, the Companystandardizes employees' environmental management work and strengthens their abilityto respond to emergency incidents.
Honors of HefeiHome Appliances:
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2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
Implement Green Development
Energy and ResourceManagement
TCL Smart Home strictly adheres to relevant laws and regulations such as theLaw of thePeople's Republic of China on Energy Conservation, and continuously improves its energymanagement system. To reduce dependence on non-renewable energy sources such asfossil fuels, TCL Smart Home adopts various energy management measures, promotesenergy-saving technologies and equipment, optimizes energy structure and usage, andreduces energy consumption in various elds. At the same time, the Company promotestechnological innovation and industrial upgrading, improves energy conversion andutilization efficiency, and balances economic and social development with reducingenergy consumption per unit of output value.
Currently, Hefei Home Appliances has achieved full coverage of its production base with anenergy management system, and has specially established an energy management teamand an implementation team. By formulating comprehensive energy targets, indicators, andreview mechanisms, as well as improving energy measurement and personnel managementsystems, Hefei Home Appliances systematically monitors, analyzes, and optimizes energy usage,continuously taps into energy-saving potential, and continuously enhances energy utilizationeciency.Meanwhile, Hefei Home Appliances has actively constructed photovoltaic energy storageprojects, effectively avoiding the impact of power rationing during peak periods onenterprise production and operation. It has also enhanced energy eciency by utilizingwaste heat recovery technology for refrigerator air compressors, ensuring stable energysupply for production and operation. Homa Appliances has introduced temperaturesensing equipment, energy-saving motors, and other technical facilities, establishedenergy indicators, and linked them to the performance of responsible individuals,ultimately achieving all indicators by 2024. In 2024, Hefei Home Appliances achievedphotovoltaic grid-connected capacity of 207,800 MWh, with an annual power generation of
14.5 million kWh. Currently, 4.67 MW are under construction, and it is expected to complete
the construction of 25 MW of photovoltaic capacity by 2025.Homa Appliances has been continuously paying attention to the energy consumption ofproduction equipment, releasing theEnergy Management MeasuresandManagementMeasures for Energy Consumptionof Key Machines to enhance the monitoring andanalysis of daily energy consumption in production and operations and to reasonablycontrol production energy consumption. To further implement the clean energy transitionwork, in 2024, Homa Appliances completed the research and planning of distributedphotovoltaics, with a plan to invest approximately 10 MW and initiate implementation in2025. In 2024, Homa Appliances was awarded the honor of Green Electricity ConsumptionCustomer by China Southern Power Grid.
In 2024,Hefei Home Appliances:
Green electricity consumption
Purchased
Self-consumption photovoltaicpower generation (kWh)
22.41
million kWh
21,000
Energy Management
IndexUnit2024Comprehensive energyconsumption
Tons of standard coal37,738.76Comprehensive energyconsumption density
Tons of standard coal/Million output value
2.06
Natural gasm
1.043,582.21
Diesel oilL215,353.97GasolineL25,585.14Total power consumptionkWh293,139,142.6220232024
19,976,894
21,271,306.60
TCL Smart Home Energy Consumption
Hefei Home Appliances' target forthe proportion of green electricitypurchased and used in 2024 andthe next three years2024202520262027
33%
43%
60%53%
Honor of Green ElectricityConsumption
When selecting product materials, TCL Smart Home gives priority to recyclable metalsto enhance the recyclability of its products. Its subsidiaries, Hefei Home Appliances andHoma Appliances, have established recycling programs to encourage consumers toreturn their old products for recycling and reuse, thus achieving the circular utilization ofresources.In terms of packaging technology, Hefei Home Appliances has invested in researchingand developing new eco-friendly materials, such as biodegradable packaging materials,to reduce the burden on landfills, while adopting streamlined protection measures.During the reporting period, Hefei Home Appliances reduced the usage of protective lm,xing tape, and sealing tape by 35%. To minimize the environmental impact of products,Homa Appliances insists on using green materials to manufacture product packagingand opts for environmentally friendly soy ink and recycled paper for printing instructions,comprehensively promoting green production.In addition, in 2024, Homa Appliances will simultaneously promote theSupplier PackagingRecycling Management Measuresto standardize the recycling management of packagingmaterials from various suppliers. The xtures, tools, and packaging protection materialsused by suppliers during transportation will be uniformly disposed of and recycled,thereby improving the recycling rate of packaging materials and reducing factory wasteproduction.
In 2024,TCL Smart Home
In 2024,TCL Smart Home
Water consumptionWater intensity
Total quantity of packagingmaterials
1,627,278.00m
88.63
258,813.36 tons
Packaging Material Management
TCL Smart Home attaches great importance to the protection of water resources andstrictly adheres to laws and regulations such as theLaw of the People's Republic ofChina on Prevention and Control of Water Pollution, theAction Plan for Prevention andControl of Water Pollution, and theIntegrated Wastewater Discharge Standard of thePeople's Republic of China. Adhering to the principle of prioritizing water conservation, theCompany proactively strengthens various water conservation measures and continuouslyimproves the eciency of water use. In the production process, water is primarily used inproduction processes for laboratory tests, production tests, domestic uses, and re control.All water sources are from municipal water supply and do not involve water extractionfrom water sources.
Water Resource Management
green certicatesfrom other provinces
m
/Millionoutput value
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2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
Implement Green Development
TCL Smart Home strictly adheres to national and locallaws and regulations such as theLaw of the People's Republic of China on the Prevention and Control of AtmosphericPollution, theLaw of the People's Republic of China on Promotion of Cleaner Production,theEmission Standard of Air Pollutants for Industrial Kiln and Furnace, theEmissionStandard of Pollutants for Synthetic Resin Industry, theEmission Standards for OdorPollutants, and theEmission Limits of Air Pollutantsof Guangdong Province. It promotesthe construction of internal management systems, builds waste gas treatment systems,and strictly controls and treats pollutants such as nitrogen oxides, sulfur dioxide,particulate matter, and volatile organic compounds (VOCs) in production and domesticwaste gases to meet relevant national and local standards, ensuring that all types of airpollutants are discharged in full compliance.In accordance with local regulations such as the Regulations ofAnhui Province onPrevention and Control of Air Pollutionand theRegulations of Hefei on Prevention andControl of Air Pollution, Hefei Home Appliances has continuously improved its waste gasmanagement system. Based on the Company's own operational conditions, it updatedtheWaste Gas Management System (4.0)and made adjustments to the managementorganizational structure and personnel, further standardizing the management of airpollutants. Hefei Home Appliances has taken multiple measures and adopted variousprocesses, including filter cartridge filtration and dust removal, secondary activatedcarbon adsorption, UV photolysis, or their combinations, to treat waste gas according todierent scenarios and ensure emissions meet standards. At the same time, the Companystrictly complies with environmental assessment requirements, pollutant dischargepermit regulations, and standards such as theSelf-monitoring Technology Guidelines forPollution Sources(HJ 819-20170), conducts systematic monitoring of waste gas emissionconcentrations on a quarterly basis, comprehensively controls pollutant emissions, andensures environmental compliance and controllable emissions.Homa Appliances has established theWastewater and Waste Gas Management Measuresto efficiently manage the treatment and monitoring of waste gas emissions. At thebeginning of each year, the Company formulates a waste gas monitoring plan andscheme, and regularly entrusts qualied environmental protection testing companies tomonitor production waste gas and obtain air pollutant monitoring reports. Each factorythen compiles a "waste gas and pollution prevention map" based on the report results,clarifying the impact range and locations of waste gas emissions, providing data supportfor air pollutant management.
In 2024,TCL Smart Home
Wastewater, wastegas, and wasteemissions all meetthe standards
Air Pollution Management
Pollution and WasteManagement
Adhering to the green production philosophy, TCL Smart Home complies with national andlocal laws and regulations on the emission and management of pollutants and waste.It has established internal management systems for waste gas, wastewater, waste, andnoise, continuously strengthens corresponding management measures, regularly reviewsand updates relevant emission permits, and follows the standard limits imposed bypollution discharge requirements to ensure that the treatment process is compliant andlegal, thereby minimizing the negative impact of the Company's production and operationprocesses on the environment.To effectively identify potential environmental risks, TCL Smart Home has formulated anenvironmental self-monitoring plan in accordance with relevant regulatory requirements.The plan involves monitoring various pollution factors such as wastewater, waste gas,groundwater, and noise at the factory boundary through qualied third-party institutions,and issuing corresponding monitoring reports to ensure emissions meet standards.To further strengthen pollution and waste management, Hefei Home Appliances hasestablished an environmental protection management team, with the general managerserving as the team leader. The team consists of a deputy team leader and an executiveteam leader, and various departmental management personnel are assigned to relevantresponsibilities. At the same time, Hefei Home Appliances has formulated multiple internalsystems, including regulations on wastewater management, waste gas management,noise management, and hazardous chemical management, to carry out comprehensivepollutant control and ensure emissions meet standards.
Homa Appliances strictly adheres to theWastewater and Waste Gas ManagementMeasuresin managing and controlling production and domestic wastewater. Itregularly entrusts a third party to monitor the Company's production wastewater. Forwastewater that fails to meet the standards, subsequent operations are conductedin accordance with theProcedures for Corrective and Preventive Measures.
In 2024,TCL Smart HomeTotal wastewater discharge
Total discharge of hazardous wastes
Total discharge of non-hazardous wastes
Wastewater discharge compliance rat
301,919 tons
245.01
tons
15,412.02
tons
100%
To eectively manage major wastewater pollutants such as ammonia nitrogen, totalphosphorus, uoride, and animal and vegetable oils in compliance, TCL Smart Homestrictly adheres to national and local laws and regulations such as theLaw of thePeople's Republic of China on Prevention and Control of Water Pollution, theActionPlan for Prevention and Control of Water Pollution, and theIntegrated WastewaterDischarge Standard of the People's Republic of China. It continuously improvesits internal system construction, equips with wastewater treatment facilities, andstandardizes wastewater monitoring and testing procedures to ensure wastewaterdischarge compliance.To further strengthen wastewater management, Hefei Home Appliances hasformulatedthe Wastewater Management Systemin accordance with policies such astheHefei Water Environment Protection Regulations. The Company has implementedmanagement measures in an orderly manner, such as reducing uncontrolledleakage and spillage to control wastewater discharge and improve wastewaterrecycling and utilization. At the same time, the Company has entrusted a third partyto be responsible for the operation of the sewage station and regularly inspectsthe operation of on-site equipment. It also monitors the concentration of pollutantsin discharged sewage on a quarterly basis and strictly monitors the operation andmaintenance of sewage treatment facilities.
Wastewater Management
Hefei Home Appliances sewage treatment process
Wastewater
HCL PAC
PAM
Regulating tankCoagulation reaction
precipitationAir otation system
Neutralization
reaction tank
FilterRecycling water tankStandard emission
Sludge condensation
and lter pressing
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2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
Implement Green Development
TCL Smart Home conducts strict classication and management of waste. In accordancewith national and local laws and regulations such as theStandard for Pollution Control onHazardous Waste Storageand theTechnical Specication for Setting Identication Signs ofHazardous Waste, it organizes the disposal of hazardous waste and classies and recyclesgeneral waste. While ensuring that the waste disposal process meets legal requirements,it actively explores waste reduction and recycling measures.For dierent types of waste, Hefei Home Appliances has formulated dierent managementsystems and plans. Recyclable solid waste is sold normally, while discarded electroniccomponents are handed over to manufacturers for professional recycling and disposal.In 2024, in accordance with relevant regulations and the Company's own operationalstatus, Hefei Home Appliances updated theEnvironmental Factor Identification andEvaluation Management Specification (5.0), adjusted the organizational structure ofwaste management personnel, and organized an updated list of hazardous waste. Interms of waste management measures, Hefei Home Appliances has established a cross-departmental cooperation mechanism. The supply chain is responsible for the storageand third-party disposal of general solid waste and hazardous waste, while each factoryis responsible for ensuring the treatment and emission compliance of pollutants. TheHuman Resources Development Department is responsible for monitoring and evaluatingimportant environmental management performance to ensure efficient operationthroughout the entire waste management process. On this basis, the Company insistson purchasing environmentally friendly and low-toxicity products, while reducing thenegative impact of solid waste on the environment from the aspects of waste productionand pollution level.Homa Appliances has established systems such as theWaste Classication ListandWasteManagement Measures, creating a management system that covers the entire lifecycleof waste, from generation, classification, storage, transportation to final disposal. Eachlink is subject to strict solid waste control measures. On this basis, Homa Applianceshas established a hazardous substance management system in accordance withthe QC080000Requirements of Hazardous Substance Process Management System
certication standard and relevant customer requirements, clarifying the identication andcontrol process of hazardous substances to reduce environmental risks.
Waste Management
Waste typeWaste contentsDisposal methodsGeneral recyclable wastes
Waste metal, wasteplastic, waste paper,
waste wood, etc.
Commission qualied unitsfor disposalGeneral non-recyclable
wastes
Domestic waste,construction waste, etc.
Commission qualied unitsfor disposal
Hazardous wastes
Electronic waste, usedpackaging drums, surfacetreatment sludge, etc.
Store in hazardouswaste warehouse, andcommission qualiedhazardous waste disposal
agencies for disposal
Types of major pollutants
Green Culture
TCL Smart Home strictly adheres to national and local laws and regulations such as theLaw of the People's Republic of China on the Prevention and Control of Noise PollutionandtheEmission Standard for Industrial Enterprises Noise at Boundaryof Guangdong Province,and is committed to reducing the impact of noise on the surrounding environment. TCLSmart Home and its subsidiaries have taken various measures to manage noise at thefactory boundary, such as regularly updating detection schemes, improving equipmentprotection and work environment testing, and continuously optimizing noise controlstrategies.Hefei Home Appliances has established aNoise Management Systemand effectivelycontrolled and reduced noise levels by adding sound-absorbing cotton and conductingregular environmental noise testing, ensuring that noise levels meet standards. Meanwhile,Homa Appliances has formulated aNoise Emission Management Method, implementedsound insulation and shockproof measures in some workshops to minimize noise in thefactory area, and promptly conducted maintenance and upkeep on production equipmentto avoid noise disturbances to residents.
In 2024,Homa AppliancesConducted
The number of employees whoparticipated in environmentalprotection training was
environmental protectiontraining sessions
11,039
personnel
Noise Management
TCL attaches great importance to enhancing employees' environmental awareness and iscommitted to creating a green cultural atmosphere where everyone participates. In the oceenvironment, the Company implements energy-saving measures such as intelligent lightingsystems and paper recycling to reduce resource waste. At the same time, the Companyregularly conducts environmental protection training and themed activities to enhanceemployees' understanding of green production, improve their environmental awareness andparticipation, and encourage employees to integrate the concept of green development intocorporate culture through multi-dimensional environmental protection concepts. In 2024,Hefei Home Appliances conducted a total of three environmental protection trainings, with atotal of 39 participants. In addition, Homa Appliances disseminates environmental protectionknowledge and fosters a sustainable development atmosphere where everyone participatesby sending promotional videos advocating green culture within the Company.
Environmental protection tips in the oce of Hefei Home Appliances
Homa Appliances' promotional videoclip for the World Environment Day
Homa Appliances green culturepromotional video
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2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
Implement Green Development
Green IndustryChain
In 2024, Hefei Home Appliances'Washing machine products have saved a total of
6,300,000
kWh ofelectricity for usersThe tumble dryer is
100%
compliant with Level 1 of the GB 12021.4-2013standard27%
of the pulsator washing machines are rated as Level 1 according to theGB 12021.4-2013 standard, while
63%
are rated as Level 2 according to thesame standard
TCL Smart Home adheres to the concepts of environmental friendliness and sustainabledevelopment in the production process. From product development and manufacturing todisassembly and recycling, it fully integrates into the green management system, strivingto minimize resource and energy consumption while reducing unnecessary emissions andpollution, and minimizing environmental impact. The Company is committed to building agreen industrial chain and promoting innovation and joint development of environmentalprotection technologies through close collaboration with supply chain partners.In the raw material procurement process, TCL Smart Home gives priority to materials thatare environmentally friendly, green, and produced in accordance with environmentalprotection and safety standards. Hefei Home Appliances rigorously monitors hazardoussubstances during the raw material procurement stage, insists on using dangerous andhazardous components and elements that meet the requirements of the Directive onthe Restriction of the use of Certain Hazardous Substances in Electrical and ElectronicEquipment (RoHS), and promotes the use of sustainable materials such as recyclableplastics and straws to reduce dependence on environmental resources and providecustomers with safer and more environmentally friendly products. Homa Appliancesemphasizes the selection of suppliers, conducts strict verification of the environmentalperformance of service or product suppliers prior to procurement to ensure theircapabilities in controlling and managing critical environmental pollutants. On this basis,Homa Appliances creates a list of qualified suppliers, conducts regular audits andsupervision, and promotes continuous improvement in environmental management levelsthrough dynamic evaluation.In the product R&D and design phase, TCL Smart Home thoroughly considers the impact ofproducts on the environment, and creates durable, environmentally friendly, energy-saving,and efficient products through green innovation of key components and technologies.Hefei Home Appliances adheres to a full lifecycle approach from the initial design stage,rigorously complies with the latest energy efficiency standards of various countries andthe requirements for green products of household appliances, and optimizes the productdevelopment and design from multiple dimensions.To enhance product energy eciency, Hefei Home Appliances actively adopts technologiessuch as intelligent, high-efficiency, and energy-saving refrigeration components, maincontrol frequency conversion, and microcellular foam door seals. These technologiesensure the product's low energy consumption characteristics in terms of system eciency,operational power consumption, and insulation performance, thereby reducing energyconsumption during product use. Furthermore, Hefei Home Appliances incorporates themaintainability, recyclability, and upgradeability of products into product design, ensuringlong-term use and minimizing resource consumption. Through modular design, users caneasily replace damaged components, extending the product's service life.
Homa Appliances continuously strives for improvement and innovation in energy-savingtechnologies, committed to providing consumers with high-end and low-energy products.The Company's series of products consistently adopt the environmentally friendly R600arefrigerant, which not only enhances refrigeration eciency but also signicantly reducesharmful substance emissions.In the production process, TCL Smart Home persists in promoting the transition to cleanenergy, actively adopts environmentally friendly and advanced processes, and continuouslyreduces the impact of corporate production and operations on the environment. HefeiHome Appliances continues to strengthen its investment in photovoltaic energy within theCompany's parks, using clean and sustainable energy to reduce outsourced electricity,achieving self-production and self-consumption of clean energy, effectively reducingenergy consumption and environmental damage. Homa Appliances focuses on updatingand replacing production processes to reduce various energy consumptions of products.To test the eectiveness of related work, Homa Appliances regularly conducts voluntaryclean production audits, inviting third-party testing institutions to conduct comprehensiveaudits of key process flows, and based on the audit results, formulates targeted cleanproduction goals and rectication plans to continuously improve and perfect the level ofclean production.When selecting product materials, TCL Smart Home gives priority to recyclable metalsto enhance the recyclability of its products. Both Hefei Home Appliances and HomaAppliances have established recycling programs, encouraging consumers to return theirold products for recycling and reuse, thus achieving resource recycling. Furthermore, theCompany is actively promoting the practice of green packaging, investing in the researchand development of new eco-friendly materials such as biodegradable packagingmaterials, reducing packaging usage, and promoting recyclable and degradablepackaging.In the warehousing and transportation sector, TCL Smart Home actively practices greenlogistics and explores solutions to reduce carbon emissions and resource usage duringtransportation. Hefei Home Appliances has reduced cartons used in product packagingand circulation, and promote the use of recyclable packaging appliances, special industrialvehicles and recyclable plastic boxes. Currently, Hefei Home Appliances has established a10,000 m2 low-carbon, pollution-free intelligent stereoscopic warehouse, equipped withnew energy battery-powered vehicles, to further reduce environmental impact.
the sales of green products of HefeiHome Appliances amounted to
5.7243
million yuan
R260F1G-C frost-free refrigerator hasobtained China Energy Eciency
Certication
The compound double-tumbledryers have obtained the certicationof green products in China
R316V7-D frost-free refrigeratorhas obtained the green products
certication
Hefei Home Appliances Green Certication
In 2024,
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2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
Implement Green Development
SDGs addressed in this chapter
Uphold Product
Responsibility
RESPONSIBILITY
TCL Smart Home has always taken sustainable technologicalinnovation and excellent product quality as the foundation forits sustainable development. The Company is committed tobecoming a globally leading smart home appliance enterprise,actively fullling product responsibilities, improving productioneciency, optimizing customer service, and providing consumerswith a smart experience.
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Environmental, Social and Governance Report
R&D andInnovation
R&D andInnovationStrength
R&D and innovation are the core driving forces behind the high-quality development of TCLSmart Home. After more than 20 years of development, TCL Smart Home has established acomprehensive and advanced R&D and quality control system. The Company is customer-oriented, continuously enhancing its product R&D and innovation capabilities, attachinggreat importance to the management and protection of intellectual property rights, andconstantly improving its market competitiveness.TCL Smart Home has always adhered to the core concept of "achieving global leadershipwith rst-class talent", continuously increasing the introduction of scientic research talentsfor refrigerators and washing machines, especially in the elds of quality control, vibrationand noise suppression, and simulation technology research and development, attractingmany senior professional talents to join. The R&D team is constantly expanding. TCL SmartHome has multiple R&D centers, among which Hefei Home Appliances has two majorR&D centers for washing machines and refrigerators. Each R&D center is responsible forformulating relevant product technology development strategies, building research anddevelopment system capabilities, promoting product development, and ensuring productperformance and quality. The Homa Appliances R&D center focuses on the development ofair-cooled products and process technology eciency improvement. Through continuoustechnological breakthroughs, it continuously enhances the Company's research anddevelopment competitiveness.
In addition, to enhance the driving force of company employees in research anddevelopment innovation and product development, TCL Smart Home has formulatedmultiple R&D incentive systems. Hefei Home Appliances has formulated incentive policiessuch as theNew Product Project Assessment and Incentive Plan and the ImplementationRules for the Science and Technology Innovation Award, and regularly organizes relevantscience and technology innovation activities every year to encourage all employeesto participate in technological innovation. Homa Appliances has formulated incentivemeasures such as theProduct Development Incentive Measuresand theTechnical Pre-research, Acceptance, and Incentive Management Measures, and further stimulatesthe innovativeness of technical personnel by setting up technology innovation awards,quarterly awards for cost savings and consumption reduction, and commendations fortechnical pacesetters.Hefei Home Appliances adheres to the product development philosophy of "asynchronousdevelopment, quality and efficiency improvement, technology-driven, and premiumproduct creation", continuously innovating in the eight major directions of refrigeratortechnology - healthy freshness preservation, high energy efficiency, aesthetic design,thin built-in series, ice-water technology, noise reduction technology, intelligence, andexquisite design - to continuously enhance product quality and user experience. In 2024,Hefei Home Appliances will take technological originality as the core driving force, actively
In 2024,TCL Smart HomeR&D personnel
Ratio of R&D personnel
R&D investment is
Carry out
1,074
million yuan
innovative projects
7.2%
Product performance testing, and product safetyand stability testing
Product appearance design, panel materialsapplication, interior design, and silk-screen printingdesign
Development of embedded product development,air-cooled products, and completely knock downproducts, tackling of technical issues related toenergy efficiency, process efficiency improvement,and reduction of expenditure and consumption
Laboratory accredited
by CNAS
Provincial industrialdesign center
Enterprise R&D centerHoma Appliances
R&D center
Research orientation
InnovativeTechnologies andProducts
TCL Smart Home attaches great importance to product innovation and is committed toeciently transforming innovative achievements into practical applications. It promotes thedevelopment and implementation of innovative products through diversied channels. In2024, TCL Smart Home will focus on making breakthroughs in key technological areas suchas product health technology, refrigeration eciency, and energy consumption reduction.Hefei Home Appliances integrates multiple concepts such as environmental protection,health, intelligence, and user experience in product innovation, fully embodying theorganic combination of technological innovation and humanistic care to safeguard userhealth. For refrigerator products, Hefei Home Appliances focuses on product features suchas intelligent noise reduction, molecular freshness preservation, antibacterial and odorcontrol, deep freezing, energy eciency, and built-in technology. Among them, molecularpreservation and deep-freezing technology have been recognized by the AppraisalCommittee of the China National Light Industry Council as reaching the internationalleading level. For washing machine products, Hefei Home Appliances continues tooptimize energy eciency and environmental performance while focusing on user healthand inclusive design as the core of product innovation. Through the R&D and application ofbreakthrough multi-domain pollution-free technology, it has created a safer and healthierwashing experience for consumers. As of the end of the reporting period, the sales volumeof products equipped with this technology has reached 136,000 units.In addition, Hefei Home Appliances has extended its innovation focus to vulnerablegroups: washing machines are equipped with child lock functions to ensure the safety ofchildren; braille designs have been added to the control panel of washing machines toprovide convenience for visually impaired users, eectively meeting the needs of specialgroups.
Homa Appliances has beenawarded as a benchmarkenterprise for technological
innovation
Molecular Freshness Preservation 2ndGeneration - Scientic and TechnologicalAchievement Appraisal Certicate
Deep-freezing Technology -Scientic and TechnologicalAchievement Appraisal Certicate
deploy the application of intelligence and articial intelligence technology, deeply explorethe eld of green and low-carbon technology, continuously expand the breadth and depthof technology, and further enhance the Company's core technological advantages.Guided by the philosophy of creating people-oriented innovative technology that isrational and practical in product development, Homa Appliances focuses on enhancingthe fit between embedded products and user usage scenarios, and improving the air-cooled product line to meet the order requirements of different customers. At the sametime, Homa Appliances has intensified its efforts to develop completely knock downproducts to adapt to the needs of emerging markets. To further achieve ecient resourceutilization and comprehensive improvement in market competitiveness, Homa Applianceshas conducted in-depth exploration and research in the fields of energy-saving controltechnology, application of new materials and processes, and product cost reduction andconsumption reduction, continuously optimizing production processes, and promoting thedeep integration of technological innovation and cost control.
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Uphold Product Responsibility2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
Technological innovation achievements of Hefei Home Appliances
Technicaldimension
RefrigeratorWashing machine
Energyeciency
Combi European grade A energy eciency
CD European grade A energy eciency
Surge current suppression circuit
DC-DC high-eciency power conversiontechnology
Segmented carrier ecient controltechnology
Research on frequency adaptationtechnology
Variable frequency zero standby powerconsumption technology
China energy eciency grade 1European standard grade A-10%~25%Australian Standard water eciency star: 4.5, electricityeciency star: 5, etc.
Noise
combi European grade A noise
AI-based intelligent noise reductio
Comprehensive evaluation technology forbody-sensory noise
European standard grade ADual-drum model G160C16-HDY/G160Q10-HDY won theExcellence Award in the acoustic quality evaluation andcertication organized by the China Household ElectricAppliance Research Institute
Health
Originality · Molecular Magnetic Freshness
GP+ photoelectric sterilization and odorremoval
-40℃ crystal lm freshness preservationtechnology
The pollution-free washing machine has been evaluatedby the China Household Electric Appliance ResearchInstitute and has achieved the industry's rst dual Class 1pollution-free product statusUser experienceHousehold ultra-thin built-in technology, etc.
In the eld of smart home, food freshness preservation has always been a core concern for users. Among them, high-endingredients such as deep-sea seafood have extremely high requirements for storage temperature. The freezing temperatureof traditional household refrigerators is usually between -18℃ and -24℃, which is dicult to meet the freshness preservationneeds of deep-sea seafood. To address this industry pain point, TCL Smart Home has innovatively launched a -40℃ deep-freezing freshness preservation technology for household refrigerators. As an industry pioneer, this technology uses a singleR600a refrigerant, combined with multi-level gradient heat dissipation, three-dimensional heat dissipation air circulation,ECC technology, and intelligent control system, to reduce the lowest temperature in the freezer compartment to -40℃. Thistechnological breakthrough not only meets consumers' demand for a high-quality life but also injects innovation power intothe refrigerator industry.
Case: TCL Smart Home has innovatively launched a household refrigerator featuring -40℃ deep-freezing freshness preservation technology
Constrained by technological bottlenecks, the washing efficiency of washing machine products on the market has longstagnated at around 1.1. As a globally leading home appliance brand, Hefei Home Appliances focuses on the "washingeciency" and has invested signicant research and development resources in this eld, driving technological breakthroughsin the industry. TCL's washing machine, the Super Drum, has elevated the washing eciency to 1.2, surpassing the industry'supper limit in washing capacity. The core principle of the "Super Drum" stems from its larger drum diameter of 540mm,coupled with the adoption of 6D lifting ribs and a sea wave pattern design, which extend the movement trajectory of clothesby 80%, achieving superior washing eciency. Furthermore, this product is equipped with an intelligent electronic controlalgorithm that tailors washing programs according to different usage scenarios, ensuring optimal cleaning results whileprecisely controlling water, electricity, and detergent usage, thereby reducing resource and energy waste.
Case: T7H super drum washing machine breaks through the industry ceiling in washing capacity
In the design and technological innovation of its products, Homa Appliances deeplyexplores the actual needs of users, enabling the products to integrate humanized designand scenario-based experience on the basis of achieving basic functions, in order to meetthe diverse needs of users. For example, in terms of exterior design, Homa Appliancesadopts a bottom cooling system and an ultra-thin built-in design, achieving a perfectintegration of the refrigerator and the cabinet, helping users improve the utilization rateof kitchen space. In terms of functional design, Homa Appliances incorporates patentedquality control multi-temperature zone technology, including specialized zones such asintelligent control mother and baby temperature-variable space and zero-temperaturefreshness preservation space, to achieve specialized storage in dedicated areas, enhancethe preservation eect of ingredients, and simultaneously meet users' daily usage needs,improving convenience. Furthermore, Homa Appliances is equipped with AG+ blue crystalbacteria-removing function to achieve real-time dynamic sterilization, providing users withhealthy dietary guarantees. According to the testing and certication by the GuangzhouMicrobiology Research Institute, the antibacterial rate of this function is as high as 99.99%.
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Awarded by
Awarded by
Award
Award
iF Product Design Award: TCL 6kg Slim Washing Machine
iF Product Design Award: T10 TCL Twin Drum Washing & Drying Set
iF Industrie Forum DesignBureau of European Design Associations
2024 Red Dot Award: Super Drum P7
2024 Red Dot Award: Super Drum T7H
Organizing Committee of ChinaInformation Technology Expo
Innovation Award at the 12th China Information Technology Expo: TCLultra-thin zero-embedded refrigerator
Innovation Award at the 12th China Electronic Information Expo: TCL SuperDrum Series Washing Machine2024 20th China Household ApplianceInnovation Award
Annual Technological Innovation Award
Organizing Committee of ChinaHousehold Clothes Washing, Drying andCare Industry Summit Forum
Leading Brand Award in Health Washing and Care
2024 China Household Clothes Washing, Drying and Care Industry -Products - Ultra-thin Integrated Washing and Care Innovation Pioneer -GH200P20-DBI
2024 China Household Clothes Washing, Drying and Care Industry- Products - Healthy Washing and Care All-Round Star - G100T3-BIS+H10UT3-SOrganizing Committee of ChinaRefrigerator Industry Symposium
Leading brand in thin built-in health and freshness preservation
Ultra-thin zero-embedded technology product
-40°C crystal lm deep-freezing freshness preservation technology productChina Household Electric ApplianceResearch Institute
Top 10 Brands in the Washing Machine Industry for the Year 2023-2024
Homa Appliances Awards and Honors
Organizing Committee of Appliance &Electronics World Expo/China HouseholdElectrical Appliances Association
2024 AWE Golden Word of Mouth Award Champion
2024 AWE Excellent Product Award
2024 China Refrigerator Industry SummitForum
Leading Slot-in Product of 2024 China Refrigerator Industry20th China Household ApplianceInnovation Award
Annual Product Innovation AwardNational Household Electric ApplianceIndustry Information Center
Built-in Innovation Pioneer Award
2024 Hefei Home Appliances Product Awards and Honors
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Uphold Product Responsibility2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
IntellectualPropertyProtection
Intellectual property rights are an important carrier that embodies a company's innovationstrength, technological accumulation, and core competitiveness. They are also a keystrategic resource for a company to maintain its leading position in the industry. TCL SmartHome attaches great importance to intellectual property protection and strictly followslaws and regulations such as thePatent Law of the People's Republic of Chinaand theRules for the Implementation of the Patent Law of the People's Republic of China. It hasestablished a professional patent application team and a full-process managementmechanism, regularly conducts training related to intellectual property, and efficientlypromotes the Company's intellectual property protection work.Hefei Home Appliances has formulated theMeasures for the Administration of Patents andSoftware Copyrights, which stipulates specic measures for patent protection and violationpenalty mechanisms. At the same time, it has equipped with full-time patent managementpersonnel to carry out relevant management work, comprehensively covering all aspectsof product research and development, manufacturing, and market sales, throughoutthe entire process of enterprise production and operation. Within the Company, HefeiHome Appliances has comprehensively strengthened its intellectual property protectioncapabilities by signing condentiality agreements for research and development, settingup confidential areas, establishing a professional team responsible for intellectualproperty application and registration, and improving internal management mechanisms.Simultaneously, Hefei Home Appliances actively conducts market monitoring and rightsprotection actions to ensure the safety of innovative achievements and the effectiveprotection of legitimate rights and interests. Furthermore, the Company has establisheda rigorous intellectual property risk prevention and control mechanism, conductingcomprehensive patent searches before product research and development, avoidingsimilar designs during product research and development, and obtaining patent licenseswhen necessary to minimize the risk of infringement.Homa Appliances has established a comprehensive patent management operation andapplication mechanism, set up a dedicated intellectual property management team,formulated institutional documents such as thePatent Management Work Measures, andstrengthened the whole process management of patent application, maintenance, andoperation. At the same time, Homa Appliances collaborates with professional serviceagencies to build a comprehensive intellectual property risk prevention and control systemto eectively respond to potential disputes.In order to further enhance employees' awareness of patent management and consolidateintellectual property protection eorts, TCL Smart Home actively conducts training activitieson intellectual property and patent management. Through systematic course design, itcomprehensively improves employees' knowledge of intellectual property rights and theirability to manage patents.
As a leading enterprise in the home appliance manufacturing industry, TCL Smart Homehas always been committed to driving technological innovation and development inthe industry through innovation. By participating in the formulation of multiple industrystandards, it promotes the process of industry standardization. Meanwhile, the Companyadheres to building an open and win-win cooperation platform, deeply participates inindustry exchanges and cooperation, actively shares industry experience, and injectscontinuous impetus into the high-quality development of the industry.
TCL Smart Home
In 2024,TCL Smart Home
In 2024,
onduct intellectual propertyrights training
new patents were granted
Leading IndustryDevelopment
During the reporting period,
TCL Smart Home participatedin the design of
industry standards
new invention patents were granted
patents have been grantedAccumulatively
2,167
times
To reduce the cost of repeated communication and coordination during the design process and enhance the quality andapproval rate of patent proposals, Hefei Home Appliances has conducted a "Patent Disclosure Document Writing Training"for its employees. Through a comprehensive introduction to the requirements for writing technical disclosures, combinedwith demonstrations of excellent cases, the training provides patent applicants with ecient writing templates and furtherstrengthens the patent management capabilities of relevant business personnel.
Case: Hefei Home Appliances conducts Patent Disclosure Document Writing Training
Standards and industry reports formulated and updated with the participation of Hefei Home Appliances in 2024
Key cooperation projects of Hefei Home Appliances in 2024
Release timeName of published standards and industry reportsMarch 2024White Paper on the Development of Cleaning Technology for Internal Stains of Washing Machines
June 2024
T/CHEAA 0032-2024The Technical Requirements of Copper Tube for Hermetic Motor-compressors for RefrigeratorsJune 2024
T/CHEAA 0033-2024Two-dimensional Bar Code Rules for Nameplate of Hermetic Motor-compressors for RefrigeratorsJune 2024T/CHEAA 0034-2024Hermetic Motor-compressors for Refrigerators
July 2024
GBT 4706.24Household and Similar Electrical Appliances - Safety - Particular Requirements forWashing MachinesJuly 2024
GB/T 4706.13-2024Particular Requirements for Refrigerating Appliances, Ice-cream Appliancesand Ice-makersAugust 2024T/CHEAA 0035—2024Polyamide Materials for the Anticorrosive Coating of Metal TubesSeptember 2024T/CHEAA 0036-2024Micro or Nanon Imprinted Color Crystal Decorated Tempered GlassNovember 2024
T/CHEAA 0040.1—2024The Sound Quality of Household and Similar Refrigerating AppliancesPart 1: Terms and DenitionsNovember 2024
T/CHEAA 0040.2—2024The Sound Quality of Household and Similar Refrigerating AppliancesPart 2: Guideline for Subjective Assessment
November 2024Technology Roadmap for the Household Electric Washing Machine and Dryer Industry in China
March 2024
T/CITS 0012-2024Technical Requirements and Test Method for Household Refrigerator MagneticField Preservation
PartnersContent
GMCC Joint Innovation Center
for New Technologies
Promote technological innovation in the refrigerator industry in areas such as high eciencyand energy saving, silent and comfortable operation, and healthy freshness preservationKingfa New Material Joint
Innovation Center
We will promote the development of polymer materials for various household appliancestowards green, low-carbon, healthy, environmentally friendly, and performance-enhancingdirections, and strive to become a domestic rst-class material research and developmentplatformJiangnan university
Signing of technical cooperation agreement forEstablishment of Ultrasound-AssistedQuick-freezing Technology and Deep-freezing Freshness Preservation DatabaseXi'an Jiaotong Universityromote research on new ying wing heat exchangers
Hefei Home Appliances actively fosters an open innovation ecosystem, establishingdeep partnerships with multiple national-level innovation centers, key laboratories,and renowned higher education institutions. This injects technological vitality into theCompany and sets a high-quality development model for the industry. Homa Appliancesplaces great emphasis on industry exchanges and cooperation, always adhering to theconcept of openness and win-win. It actively participates in various industry summits andtechnical forums both domestically and internationally, sharing its practical experiencein technological innovation and quality management, and contributing to the overallimprovement of the industry level.
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Uphold Product Responsibility2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
In March 2024, Hefei Home Appliances and Homa Appliances jointly presented at AWE 2024, sharing innovative designconcepts with industry partners, discussing how the home appliance industry can empower high-quality life, anddemonstrating the leading strength of Chinese enterprises in the eld of intelligent technology.On the first day of the Expo, Hefei Home Appliances held an innovative technology conference to unveil cutting-edgetechnological achievements, further demonstrating its technological innovation and market leadership in the eld of smarthousehold appliances.Homa Appliances unveiled its brand strategy upgrade plan at AWE 2024, showcasing its innovative product matrix andglobal layout, and continuously consolidating its industry-leading position. During the Expo, Homa Appliances obtainedthe "Santong" Product Authentication, further demonstrating its globally unied high-standard quality control.
On May 20, 2024, Hefei Home Appliances and Kingfa Sci. & Tech. Co., Ltd. held the unveiling ceremony for the "TCL-Kingfa NewMaterial Joint Innovation Center". This innovation center aims to gather professional talents, fully leverage the technologicaladvantages and resources of both parties, and strive to promote the development of various polymer materials used inhome appliances towards a green, low-carbon, healthy, and environmentally friendly direction with improved performance. Itaspires to become a domestic rst-class material research and development platform, leading the sustainable developmentof the industry.
TCL White Household Appliances and Kingfa Sci. & Tech.Jointly Establish a New Material Joint Innovation Center
TCL White Household Appliances and Kingfa Sci. & Tech.
Jointly Establish a New Material Joint Innovation Center
Hefei Home Appliances and Homa Appliances jointly debut at Appliance & Electronics World Expo (AWE) 2024
Case: Green and low-carbon transition to "new" - Hefei Home Appliances and Kingfa Sci. & Tech. jointly establish a new material joint innovation center
Product Qualityand Safety
QualityManagementSystem
TCL Smart Home has always prioritized product quality and safe production. The Companyhas established a comprehensive quality management system, strengthened qualityinspection processes, optimized the handling mechanism for non-conforming products,and implemented full lifecycle management of chemicals. Additionally, the Companyconducts regular quality management training to comprehensively enhance the qualitymanagement awareness and professional skills of all employees. These measures haveeectively promoted continuous improvement in product quality, providing customers withsafe and reliable products and services.In production and operation, TCL Smart Home strictly adheres to theProduct Quality Law ofthe People's Republic of Chinaand other laws and regulations, as well as various qualitymanagement standards both domestically and internationally. It continuously optimizesits quality management system and enhances product quality control and improvementprocesses. All of TCL Smart Home's operational bases have obtained ISO 9001 qualitymanagement system certication.
Hefei Home Appliances QualityManagement System Certication
Homa Appliances Quality Management
System CerticationHefei Home Appliances has established internal management systems such as theQuality, Environment & Occupational Health System Management Manualto strictly controlquality management during the production process. To systematically carry out productquality management, Hefei Home Appliances has established a Quality ManagementCenter, responsible for the construction and optimization of the Company's qualitymanagement system, handling of quality issues, improvement of supplier managementmechanisms, customer feedback, and technology introduction, and making timelyupdates and adjustments based on the Company's operations and business conditions.Through systematic quality control measures, it ensures that products not only meetquality standards but also satisfy customer needs, while continuously improving teamprofessional capabilities and the overall quality level of the enterprise. In 2024, HefeiHome Appliances' Testing and Certication Center obtained CNAS accredited laboratoryqualication, indicating that its work capabilities have met the requirements of the ISO/IEC17025 system.
Quality Management
Center
Deputy Director of Quality
Management CenterSystemOperationManagementDepartment
Testing andCerticationDepartment
Parts QualityManagementDepartment
RefrigeratorManufacturing
Quality
Department
WashingMachineManufacturing
QualityDepartment
Quality andTechnologyManagementDepartmentfor NewRefrigeratorProducts
Quality andTechnologyManagementDepartment forNew WashingMachine
Market QualityManagementDepartmentQuality Management Center Structure of Hefei Home Appliances4546
Uphold Product Responsibility2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
Homa Appliances has established a Quality Management Committee to comprehensivelycoordinate and supervise the Company's quality management efforts. Led by the VicePresident in charge of the quality system, the Committee is responsible for setting andevaluating annual quality objectives, conducting in-depth analysis of quality issues, andplanning improvement plans to continuously enhance the operational efficiency of theCompany's quality management system and ensure steady improvement in productquality. By formulating and implementing internal regulations such as the Quality Manual,Homa Appliances further strengthens the management of product quality and safety.In 2024, Homa Appliances updated and established quality management systems suchas theDesign and Development Control Procedure, Design Change Control Procedure,Completely Knock Down New Product Development, Trial Production, and ProductionTransfer Management Procedure, andTooling and Mold Management Procedure, toenhance the standardization and systematization of product development, production,and quality control, ensuring continuous improvement and safe and controllable productquality. Homa Appliances is a "Santong Product Authentication" enterprise.
ISO StandardsISO9001:2015、ISO/IEC17025
National Standards
GB4343.1-2018、GB4706.1-2005、GB470.13-2014、GB/T8059-2016、GB12021.2-2015、GB19606-2004、GB470.242008、GB/T4288-2018、GB12021.4-2013、GBT 4214.4-2008US StandardsCAN/CSA-C300-18、ANSI/AHAM HRF-1-2019EU StandardsEN 60335、EN 62552:2013、EU 2019/2016Australian/NewZealand Standards
AS/NZS 60335、AS/NZS CISPR 14.1:2013、AS/NZS4474.1:2007、AS/NZS 4474.2: 2009
As of the end of the reporting period,The repair rate of Homa Applianceshas decreased by about70%
*The reference standards listed above are all the standards certied by TCL Smart Home and its subsidiaries. Some of theabove standards are only applicable to Hefei Home Appliances or Homa Appliances
Guarantee ofProduct Safety
Adhering to the business philosophy of quality first, TCL Smart Home regards productquality management as the core principle of enterprise operation. It has establisheda prevention mechanism that pursues "zero defects" from the product research anddevelopment stage, fundamentally ensuring the quality of new products upon leavingthe factory. The Company strictly complies with laws and regulations such as theProductQuality Law of the People's Republic of China, establishes and improves managementprocesses and institutional documents, and continuously ensures high productioneciency and high nished product quality.TCL Smart Home attaches great importance to the safety of raw materials. Regardingharmful chemical substances, the Company explicitly requires all raw materials to meet thestandards of theDirective on the Restriction of the use of Certain Hazardous Substances inElectrical and Electronic Equipment(RoHS) and theRegistration, Evaluation, Authorizationand Restriction of Chemicals Directive(REACH). Regular training on the use of relevantchemicals is conducted for employees to strengthen their management awareness.Hefei Home Appliances has formulated theRegulations on Hazardous SubstanceProcess Managementin accordance with relevant standards, conducting comprehensiveassessments on raw materials involving chemical substances to ensure their safety. Inaddition, Homa Appliances has established theRoHS Compliance Control ManagementMeasures, set up a systematic supplier management mechanism, and regularly auditssuppliers, eliminating those who fail RoHS testing to ensure that all raw material qualitymeets corporate standards.In the procurement management process, TCL Smart Home has established comprehensiveprocurement inspection guidelines and related regulations. Hefei Home Applianceshas implemented full-process quality tracking through the QMS system and establisheda comprehensive procurement inspection process to strictly control the quality of raw
In the quality inspection phase of nished products, TCL Smart Home conducts rigorousinspections on the packaging, appearance, dimensions, and performance of each batchof materials to ensure the consistency and reliability of product quality. Based on this,Hefei Home Appliances has established internal management systems such as theControlProcedures for Product Monitoring and Measurementand theControl Procedure for ProductIdentication and Traceabilityto comprehensively track the quality and safety of nishedproducts. Additionally, Hefei Home Appliances ensures product quality standards throughvarious quality control measures, including 36 complete machine testing experiments.In 2024, based on internal and external feedback, Hefei Home Appliances improvedand upgraded major quality control procedures such as finished product inspectionmanagement specications, further strengthening factory inspection standards to ensurethat products meet industry and international quality standards. Homa Appliances hasestablished an IPQC process for spot-checking finished product quality and conductsrigorous inspections before product shipment to ensure that all outgoing products complywith the national "Santong" (same line, same standard, same quality) standard and EUquality standards.By the end of the reporting period, Hefei Home Appliances has obtained CCC certicate;export refrigerators business have obtained certications including SAA, CB, CE, GS, andKC certificate; the washing machine business for export have completed certificationsincluding SAA, CB, CE, GS, SASO, BSMI, KC, TISI, and BPS. Homa refrigerators have completedquality and safety certications including CCC, UL, TISI, TUV and VDE.
materials. Homa Appliances has formulated theProcurement Inspection ManagementMethodto ensure that the purchased raw materials and components meet the Company'sspecied quality standards and technical requirements, thereby ensuring product qualityfrom the source.In the production process, Hefei Home Appliances has established a quality intelligentmanufacturing system, including an industry-leading AI intelligent appearance inspectionsystem and 42 full-process inspection procedures covering the entire factory, to monitorkey manufacturing links in real time, ensure timely correction of potential issues, andcomprehensively ensure that product quality meets the highest standards. In 2024,to further enhance product quality, Hefei Home Appliances invested in refrigeratorand washing machine ESD monitoring facilities, increased MES scanning points, andappearance inspection equipment, continuously improving automation levels andstrengthening quality control capabilities.Homa Appliances implements multiple quality control measures during the productionprocess, including pre-production inspections, process inspections, and monitoring ofproduct pass-through rates, to ensure that every step meets high-quality requirements.Additionally, Homa Appliances adopts an MES intelligent quality management system toachieve intelligent control in key inspection, error prevention, and repair processes. Thesystem tracks core quality characteristics such as product appearance, safety performance,leak detection, and refrigeration performance throughout the entire process, ensuring andguaranteeing product traceability.In 2024, Homa Appliances conducted an annual equipment technical transformation,comprehensively maintaining and optimizing existing equipment, purchasing andinstalling new equipment to meet product capacity trends, and confirming equipmentadjustment through first article inspection to ensure that each product meets qualityrequirements before being put into production. At the same time, to enhance employees'awareness of product quality management, Homa Appliances regularly holds monthlyinternal quality meetings, led by branch factory managers and department heads, todiscuss quality improvement processes.
Hefei Home AppliancesRoHS Certicate
Hefei Home AppliancesRoHS Certicate
Hefei Home Appliances Smart FactoryHoma Appliances MES(Manufacturing Execution System)
Product quality incidents andproduct safety accidentsNoneIn 2024,TCL Smart Home
TCL Smart Home Reference Standard*In 2024,Hefei Home AppliancesTesting Center obtainedCNAS accredited laboratorycerticateThe ultra-thin zero-embedded seriesrefrigerator R540P12-DQ from Hefei HomeAppliances won the"FT Quality Award" forhousehold refrigerators in2024
Hefei Home AppliancesHonors
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Uphold Product Responsibility2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
Management of Unqualied Products
TCL Smart Home attaches great importance to the management of unqualied products and strictly controls the product recall process.Through systematic practice, it has established a sound recall management mechanism and standardized process, committed tomaximizing the protection of consumer rights and interests, and strictly ensuring product quality and safety.To properly handle product recalls, TCL Smart Home has established multiple mechanisms to fully protect the legitimate rightsand interests of consumers. Hefei Home Appliances has issued the Control Procedures for Substandard Products and establishedregulations for product rework and repackaging management, clarifying the processes for recalling, evaluating, and disposing ofdefective products to ensure timely handling of problematic products. Homa Appliances has established a series of systems includingtheProduct Recall Management Measures, Procedures for Corrective and Preventive Measures, and Nonconforming Product OutputControl Procedure, clearly dening the functional departments involved in product recalls and their specic operational procedures.When a product recall event occurs, Homa Appliances will quickly form a product recall team composed of representatives from R&D,quality, manufacturing plants, sales, and after-sales service departments, responsible for the overall planning, notification, recordkeeping, and eect evaluation of the recalled products. After the recall is completed, the Company will organize relevant departmentsto conduct an in-depth analysis and summary of the event to optimize future response measures.
Possible recalls for productsthat have been delivered to
customers
Initiation of recall procedureRecall of productsDisposal of recalled products
Analysis and summary ofreasons for product recallCorrection and prevention of recurrence
Documentation and archiving
Product Recall Procedure ofHoma Appliances
Evaluation of products to
be recalled
Feedback from the factory/market on major productquality defects or failures
Formulation of product recall planImplementation of product recallAnalysis of product failure and formulationof corrective and preventive actionsDisposal of recalled products
Recall summary
Product Recall Procedure of Hefei
Home Appliances
Evaluation ofproduct recall risks and initiation
of recall
QualityManagementTraining
To ensure the orderly and efficient implementation of quality management, TCL SmartHome attaches great importance to cultivating employees' awareness of qualitymanagement. On this basis, Hefei Home Appliances has formulated theIncentive Systemfor Quality Management Teamsand issued theIncentive Plan for Total Quality ImprovementActivities at TCL Hefei Home Appliances, aiming to mobilize employees' enthusiasm forproduct safety and high-quality production work. To establish a pool of quality talents andsupport global business, Hefei Home Appliances has established a quality talent trainingprogram. Through regular quality management training, it unies the quality cognition ofprofessionals and strictly implements quality measures.In 2024, to strengthen internal quality management and collaborative innovation, HefeiHome Appliances conducted a total of ve QCC (Quality Control Circle) activities, mainlycovering areas such as the refrigerator and washing machine factories, research anddevelopment, and quality. Through cross-departmental collaboration and continuousimprovement, product quality and production efficiency were further enhanced. Duringthe same period, Homa Appliances released theHoma Appliances 2024 Quality ActivityPlan for All Employees, setting up a TOP quality competition to encourage all employees toparticipate and promote the culture of quality management.
Training for quality talent classof Hefei Home AppliancesThe event was held
The number of covered people is
The graduation rate is
times
100%
In April 2024, to enhance the prociency of departmentpersonnel in quality tools and align with the Company'sbusiness development needs, the Company organizeda special training on "Common Quality ManagementTools". The training emphasized the denitions, usagemethods, and application scenarios of the seven majorquality management tools. By assigning homeworkafter class, employees were guided to deeplyunderstand and prociently use these tools, ultimatelyapplying them eectively in their actual work.
Case: Applying what you have learned, Hefei Home Appliances launches "quality craftsmanship special training"
In August 2024, Hefei Home Appliances' "Quality Talent Class" conducted its sixthtraining session on component quality management, aiming to enhance therelevant personnel's professional knowledge of quality and technical knowledgeof product categories. This training session elaborated on the key points ofcomponent quality management and also incorporated an IQC practical operationsegment to strengthen employees' understanding of inspection processes andmastery of quality standards. By inviting employees to practice the inspectionprocess at the washing machine IQC site, the training improved their ability toidentify defects and manage quality control.
On-site training for theoretical knowledge of
quality management
Washing machine IQCoperation site
Case: Applying what you have learned, Hefei Home Appliances conducts quality management training for components
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Uphold Product Responsibility2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
Digital andIntelligentTransformationSmart Production
TCL Smart Home is committed to building an intelligent and ecient smart factory system,while actively promoting the construction of digital systems and implementing digital andintelligent transformation eorts. Data empowers the comprehensive improvement of theCompany's manufacturing capabilities and cost control capabilities.As a leading enterprise in the industry, TCL Smart Home has established a systematic smartfactory system across its subsidiaries. By leveraging a fully automated manufacturingsystem across the entire chain and fully integrating articial intelligence detection systems,it ensures excellent product quality while achieving ecient manufacturing.Hefei Home Appliances currently boasts three smart factories specializing in refrigerators,washing machines, and injection molding, equipped with nine automated manufacturinglines. It has successfully established automated production lines covering the entire supplychain. To ensure the ecient operation of its automated factories, Hefei Home Applianceshas incorporated internal error prevention design and error prevention automationapplications into its production lines. Through the automation and rened management ofthe manufacturing process, it has improved product stability and quality while eectivelyreducing the need for manual intervention. Currently, the automation substitution rate forlabor-intensive positions at Hefei Home Appliances has reached 80%.On this basis, Hefei Home Appliances has pioneered the world's only fully unmannedintelligent three-dimensional cabin, which can operate unmanned and be directlyconnected to the intelligent sorting system after products are off the production line,enabling efficient three-dimensional storage and JIT shipping integration. At the sametime, Hefei Home Appliances has actively introduced artificial intelligence systems andcurrently possesses three visual inspection devices, with the detection rate of defectivedoor appearance improved to 99%.Homa Appliances has continuously strengthened its strategic investment in the field ofintelligent manufacturing, actively updated its automated production equipment andproduction line architecture, promoted the in-depth implementation of lean production,and committed to building a modern intelligent production system, creating a leadingmodel of high-end intelligent factory in the industry. The Homa Appliances high-end air-cooled refrigerator intelligent manufacturing base, which was put into operation at the endof 2023, covers an area of 72,000 square meters. The factory is equipped with automatedfacilities and equipment such as robotic arms and automatic trimming, achieving 100%automated operation. In addition, the production base is also equipped with a full-lineautomated detection system, which ensures product quality and safety through articialintelligence automatic leak detection.Digital Operationand Maintenance
Smart production cannot be achieved without the establishment of a digital system.TCL Smart Home continues to empower enterprise operational eciency through digitaltechnology engines, promoting sustainable enterprise development. In 2024, TCL SmartHome and its subsidiaries vigorously promoted the construction of digital platforms,upgrading digital systems across multiple operational sectors including "procurement,research and development, production, logistics, and finance". They deeply integrateddigital technology with refined operational strategies, established a data transparencymanagement system, and eciently improved the Company's operational eciency andcost control capabilities.Hefei Home Appliances has launched the "6+1" digital manufacturing quality managementimprovement project for refrigerator and washing machine, which involves "six majorbusiness areas and a unied development platform". It has established a digital platformand product system that is industry-leading and capable of agile delivery. The digitalsystem of Hefei Home Appliances covers the Company's main operational areas such asR&D and design, procurement, production, warehousing and logistics, nance, and humanresources, enabling online business data and using data to provide eective support forbusiness decision-making.
In 2024, Hefei Home Appliances fully promoted theconstruction of the Company's digital system andestablished the "6+1 digital platform". Among them, theMES manufacturing execution system encompassesfunctional modules such as planning and scheduling,material management, equipment management,quality management, cost management, and energymanagement. The introduction of this system supportsHefei Home Appliances in achieving full-processproduction process control from production planissuance, product launch to product offline at theproduction base.
Homa Appliances has deeply promoted the application of digitalization construction and flexible production models, establisheddigital systems such as the quality management system (QMS) data platform, a pilot smart material distribution system (WMS), anda big data analysis platform, eectively reducing the Company's production costs and manufacturing expenses, and enhancing theCompany's economic benets and market inuence. In 2024, Homa Appliances continued to optimize and upgrade the manufacturingexecution system (MES) to achieve real-time online business operations, intelligent mobile management, and full-chain digitalization.
Digital manufacturing systemEquipmentmonitoring
Productionscheduling
Qualityinspection
Dataanalysis
Full-processtraceability
Case: Hefei Home Appliances invests tens of millions to build MES manufacturing execution system
Conduct real-time monitoring of various equipment on the production line,collect operational data of the equipment, and achieve remote diagnosis andmaintenance of the equipment.
Intelligently schedule production tasks, optimize the allocation of productionresources, and improve production eciency.
By conducting online inspections of product quality on the production line, real-time monitoring of product quality is achieved, enabling timely detection andhandling of quality issues
By analyzing various data generated during the production process, we canuncover patterns and issues within it, providing support for corporate decision-making
By tracing materials and products throughout the entire process, we ensure thequality of materials and products is controllable, thereby enhancing customersatisfactionHefei Home Appliances "Theproject to enhance the qualitymanagement of digitalmanufacturing for refrigeratorsand washing machines basedon the industrial Internetplatform" has been selectedfor the pilot demonstration listof "Industrial Internet Platform+ Quality Management"
National Industrial Internet PilotDemonstration EnterpriseMinistry of Industry andInformation Technology of thePeople's Republic of China
Certication of Digital Workshopin Anhui Province
Anhui Provincial Departmentof Industry and InformationTechnology
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Uphold Product Responsibility2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
High-quality customer service has always been the unwavering principle adhered to by TCLSmart Home. By continuously improving after-sales service standards, optimizing serviceprocesses, and conducting customer service training, TCL Smart Home is committed toproviding customer with products and services that are trustworthy.Hefei Home Appliances adheres to the customer service philosophy of "striving to becomethe most trusted home appliance service provider for consumers, providing users withultimate services with warmth, and making life better!" It continuously optimizes thecustomer service process to enhance the customer service experience. To further improvethe user experience, in 2024, Hefei Home Appliances formulated theTCL Refrigerator andWashing Machine Quick Compensation Mechanism 3.0, granting more authority to frontlinepersonnel to quickly handle user needs within their scope of authority. At the same time,the Company upgraded the standardized service process for refrigerator and washingmachine product fault detection, improved maintenance quality, reduced secondary visits,and eectively shortened the waiting time for users. In addition, Hefei Home Appliancesimproved the service experience in the scenario of product return and replacement acrossall channels, and enhanced the timeliness of return and replacement services, eectivelyimproving customer satisfaction.To improve the full-chain service management system, in 2024, Hefei Home Applianceslaunched a user demand management platform to achieve online processing ofuser demands throughout the entire process. In addition, Hefei Home Appliancescomprehensively promoted the monitoring and analysis of user feedback across theentire network. Through the Voice of the Customer (VOC) management platform, real-time tracking of user feedback across the network was conducted, and a special team wasestablished to eciently handle user demands. In response to user feedback pain points,the Company vigorously promoted product quality improvement eorts, forming a closed-loop solution.In terms of customer complaint handling, Hefei Home Appliances updated theUser &Customer Complaint Resolution Mechanism (4.0) A3institutional document to furtherstandardize the customer complaint handling process. To efficiently respond to variouscustomer demands, management systems such as the customer management system,user service system (USS), and intelligent response robot have been established,comprehensively ensuring high-quality customer service management and efficientcustomer service response speed. In 2024, the Company launched the service operationsplatform and timeliness intervention platform, further refining the service work ordernodes, and setting up a complaint early warning entry on the engineer APP, providing
JDAfter-sales Service Rock Award
TCL washing machines
JDInstallation Service StarTCL washing machines
JDInstallation Service StarTCL washing machines
JDAfter-sales Service Golden Classic AwardTCL washing machines
In 2024,Homa AppliancesCustomer satisfactionCustomer complaint resolution rate
94.79%
99%
real-time intelligent reminders in case of abnormalities, helping work order managementpersonnel respond and intervene quickly. On this basis, Hefei Home Appliances regularlymonitors product public opinion and user feedback through the VOC managementplatform to eciently handle user demands and promote product quality improvementfrom the root. In 2024, the average processing time for user complaints at Hefei HomeAppliances improved to 2.62 days per order, a speed increase of 10%.Homa Appliances adheres to the service philosophy of "serving customers wholeheartedlyand determined to impress customers", continuously strengthening after-sales service,responding to customer needs in a timely and eective manner, and improving customerexperience. Homa Appliances has established communication channels such as telephonehotlines and WeChat ocial accounts to respond to consumers' needs for repair reports,inquiries, complaints, and suggestions. The Company has established user profilesthrough the "after-sales service system", with dedicated personnel responsible for follow-up, processing, and response, improving the efficiency of tracking customer needs. In2024, Homa Appliances will advance user research work to the sales end, actively buildingsales-end user research and information collection capabilities, helping the after-salesdepartment quickly establish user personas during the service process, provide targetedafter-sales services, and enhance customer experience.Homa Appliances promises to provide customer service within 24 hours in central citiesand 48 hours in rural areas, and oers appointment services for remote areas. In 2024,Homa Appliances further strengthened the optimization of service completion eciency,formulated theSpecial Maintenance Service Agreement, requiring network assessment forwork orders that are not completed within 2 hours of appointment, and simultaneouslysetting up timely on-site incentive policies to ensure that user demands are promptlyresolved. In 2024, the proportion of Homa Appliances' 2-hour timely appointment workorders was 90%, and the proportion of work orders completed within 48 hours was 81%.In order to continuously improve the full-chain service management system, TCL SmartHome comprehensively promoted the monitoring and analysis of user feedback acrossthe entire network in 2024. Hefei Home Appliances established a VOC managementplatform to track user feedback in real-time across the entire network and set up a specialteam to eciently handle user demands. Addressing the pain points identied throughuser feedback, Hefei Home Appliances vigorously promoted product quality improvementeorts, eectively reducing user complaints through the enhancement of product quality.
Customer Service
Excellent CustomerService
TCL Smart Home is committed to providing high-quality customer service, continuouslyempowering the service team, and constantly optimizing the customer experience.
ProtectingCustomer Privacy
TCL Smart Home attaches great importance to customer privacy protection, strictlyabides by laws and regulations such as thePersonal Information Protection Law of thePeople's Republic of Chinaand theData Security Law of the People's Republic of China,and has formulated strict internal data management policies and permission settings.The Company has established protection mechanisms for various stages of acquiring,monitoring and distributing customer information, to safeguard customer privacy.Hefei Home Appliances follows theTCL Privacy Policy (General Principles)and respects andsafeguards consumer privacy and security. In order to fully respect and protect consumers'rights to know and decide regarding privacy and data, Hefei Home Appliances hasoutlined the content and scenarios of personal information collection and use in its"ShifenDaojia" Privacy Guidelines. At the same time, Hefei Home Appliances has carried out acomprehensive inspection for data masking of all customer information in the data systemto strengthen the management and protection of user information.Homa Appliances has comprehensively strengthened its data permission settings toensure that user information is only accessible to internal personnel and service outlets,safeguarding consumer privacy and security. Each year, Homa Appliances' partner outletssign the Special Maintenance Service Agreement, stipulating that maintenance servicescannot be authorized to third parties in any form, to ensure that user information is notleaked.
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Uphold Product Responsibility2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
In the second half of 2024, Hefei Home Appliances conducted 16 offline white appliances technical training sessionsnationwide. The training was primarily targeted at frontline engineers, aiming to comprehensively enhance their basicknowledge of refrigerators and washing machines as well as common troubleshooting methods. During the reporting period,a total of over 900 people participated in the training.
2024 TCL Refrigerators and Washing Machines ServiceProfessional Skills Training Conference - Hainan Station
2024 TCL Refrigerators and Washing Machines ServiceProfessional Skills Training Conference - Nanjing Station
Case: Hefei Home Appliances held a professional skills training conference for services related to refrigerator and washing machine
In December 2024, Homa Appliances held the "New Thinking, New Momentum" domestic marketing annual meeting inJiangmen, Guangdong Province. During the meeting, service personnel from various provinces and quality department personnelfrom the headquarters were invited to participate in the annual after-sales work communication and exchange session, wherein-depth discussions and exchanges were held on the annual after-sales service and service prospects for 2025.
Case: Homa Appliances organizes a post-sale work communication meeting for 2024Empowerment ofService Team
TCL Smart Home remains dedicated to empowering the service team by continuouslyimproving its service awareness and skills. The Company empowers the customer serviceteam comprehensively, from maintenance technology to service quality, through regularupdates of service manuals, online and oine training, and assessments.The customer personnel training system of Hefei Home Appliances has developeddifferentiated training programs for customer service personnel of different ranks andcategories, including pre-job training for new employees, on-the-job emergency skillsimprovement training, and literacy and skills training courses. In 2024, Hefei HomeAppliances updated theCall Center Customer Service Personnel Training ManagementSystemto further standardize the induction training, skill development path, trainingcontent, and assessment methods for customer service personnel. During the reportingperiod, Hefei Home Appliances organized 60 sessions of common fault & new productknowledge empowerment training for customer service representatives and 16 sessionsof specialized technical training for frontline engineers, comprehensively enhancing theprofessional literacy and technical skills of the service team.Homa Appliances has formulated theRegulations on Management of Training forUser Service Centerto standardize customer service and training-related standards. Tostrengthen the connection between customer service personnel and product technology,Homa Appliances has established a comprehensive knowledge transfer system: theCompany regularly uploads product-related documents through the Homa systemknowledge base, cloud storage, and other systems, and regularly organizes meetings forcustomer service product technology training. In addition, for newly launched products,Homa Appliances promptly records relevant maintenance scheme videos to presentmaintenance processes and key technical points in an intuitive and clear manner, ensuringthat customer service personnel and maintenance teams can master the maintenanceskills of new products in the rst place. In 2024, Homa Appliances added monthly customerservice exams, focusing on assessing basic service literacy and product knowledge, tobuild a professional service team.
In 2024,TCL Smart HomeNumber of customer servicetraining sessions
Customer service trainingparticipants
2,031
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Uphold Product Responsibility2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
SDGs addressed in this chapter
Build a Happy
Workplace
WORKPLACE
The sustainable development process of a company is a processof growing together with its employees. TCL Smart Home paysclose attention to talent retention and attraction, continuouslyimproves its talent development management system, and iscommitted to building a diverse, inclusive, and equal workplaceatmosphere, providing employees with a comfortable officeenvironment.
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Environmental, Social and Governance Report
EmployeeEmployment
Protection ofEmployees' Rightsand Interests
TCL Smart Home strictly adheres to national laws and regulations, continuously promotesequal employment for employees, fully guarantees statutory benets such as salary andvacation, actively facilitates communication channels, and strives to create a friendly andinclusive workplace environment.TCL Smart Home strictly abides by relevant laws and regulations such as theLabor ContractLaw of the People's Republic of Chinaand theLabor Law of the People's Republic of China,establishes an internal employee management system, ensures standardized employmentpractices, and eectively safeguards the legitimate rights and interests of employees.TCL Smart Home has always adhered to the concept of fair recruitment and continuouslyestablished and improved the Company's recruitment management system. Hefei HomeAppliances upholds the recruitment philosophy of "equal opportunity, fair competition,merit-based hiring, person-job matching, and legal compliance", actively conducts campuslectures and job fairs, enhances the brand awareness of corporate talent. Meanwhile, wevigorously promote internal promotion and internal recruitment to enhance employeeinternal mobility and optimize corporate talent allocation. Homa Appliances adheres to therecruitment philosophy of "openness, fairness, competition" and "appointing people basedon merit", attracting outstanding talents through activities such as corporate open daysand internal promotion channels. Homa Appliances adopts a "double-check" screeningprocess in the recruitment process, with the human resources department conductingpreliminary screening and evaluation, and the employing department conducting finalinterviews to ensure "person-job matching".TCL Smart Home strictly prohibits the child labor and any form of forced labor, and rmlysafeguards the human rights of workers. During the recruitment process, TCL SmartHome strictly adheres to national laws and regulations, proactively veries the true age ofemployees, and prevents the recruitment of child labor by mistake due to a false documentof proof of age. For underage employees, the Company strictly complies with relevant lawsand regulations, signs internship agreements, and provides compliant management andtraining to ensure their legitimate rights and interests. Hefei Home Appliances has issuedtheManagement Procedures for Prohibition of Child Labor and Underage Laborto furtherstandardize relevant requirements. In 2024, Homa Appliances updated its digital humanresources system and incorporated an age restriction function in the onboarding system toprevent violations.TCL Smart Home has established a comprehensive compensation system. By implementingvarious measures such as precise "position-compensation" matching, regular conductingsalary market research, constructing a systematic performance evaluation system, andintroducing a differentiated compensation incentive system, the Company ensuresthat its compensation remains competitive in the market. TCL Smart Home closely linkscompensation with employee performance and regularly adjusts employee ranks andcompensation levels based on factors such as the Company's strategic goals, employeeperformance, and abilities, to ensure fairness and reasonableness in employeecompensation.In terms of performance evaluation, TCL Smart Home conducts comprehensiveperformance evaluations on a regular basis according to the nature of the various jobpositions held by employees, with a focus on the performance of employees in keyareas such as safety, quality and discipline. Hefei Home Appliances has establisheda Performance Floating System that matches corresponding salary structures basedon employees' semi-annual and annual performance, and introduces tools such as360-degree evaluation and engagement evaluation based on talent inventory, jobqualifications, and data analysis results, to comprehensively build an evaluation andassessment framework. This not only effectively enhances employees' work enthusiasmbut also promotes their self-improvement and comprehensive development in variousaspects. Homa Appliances has formulated a Performance Management Method, whichregularly organizes departments to conduct employee position and organizationalperformance evaluations on a monthly, quarterly, and annual basis, comprehensivelyreviewing the performance of employees and teams.
Labor contract signing rate
The total number of employees whoregularly undergo performance andcareer development assessments is
2,995
100%
Employee social security coverage rate
100%
Number of female employees 29.59%
Number of employees aged30 to 50 42.81%
Employees over 50 years old 4.95%Number of male employees 70.41%
Employees under 30 years old 52.24%
4,415 person
6,389 person
person
10,508 person
7,796 person
Number ofemployees:
classied bygender
Number ofemployees:
classied by
age
Diversity and EqualOpportunities
TCL Smart Home has always advocated fair employment and firmly opposed any formof discrimination. In the processes of recruitment, training, and promotion, it promisesnot to discriminate against employees based on factors such as gender, age, race,religious belief, disability, or marital status. Hefei Home Appliances has issued theAnti-Discrimination Management Procedure, which clearly implements the principle of equalpay for equal work and ensures equal employment opportunities for male and femaleemployees. Homa Appliances has formulated theEmployee Behavior ManagementMeasures, which claries the handling process for anti-discrimination and anti-harassmentcases, provides suitable positions and special allowances for disabled employees, andsupports their career development. In 2024, Homa Appliances established a women'sfederation to provide ultimate protection for the rights and interests of female employees.
To better safeguard the rights and interests of female employees at HomaAppliances and unite and lead them to make achievements, the inauguralmeeting of the first Women's Federation and the first Women's Congress ofHoma Appliances were successfully held on May 30. The meeting deliberatedand approved theElection Method for the Women's Congress(draft), listened tothe report on the preparations for the first Women's Congress, and elected 11members to the Executive Committee of the rst Women's Federation.
Case: The inaugural meeting of the first Women's Federation and the first Women's Congress of Homa Appliances were successfully held
EmployeeCommunication
Employee satisfaction rate
Number of disabled employeesNumber of employees from ethnicminoritiesRatio of female executives
Ratio of female managementpersonnel
Number of labor union members
100%
person2,385person
6.9%
16.90%
11,335
TCL Smart Home emphasizes communication with its employees and continuouslyoptimizes its feedback mechanism and problem-solving process. By establishing adiversied communication platform, the Company facilitates timely feedback on employeesuggestions and promotes efficient problem resolution. On this basis, the Companyregularly conducts satisfaction surveys to gauge employee satisfaction with the workenvironment and logistics management, and continuously optimizes related work basedon the feedback.To further strengthen communication and cooperation between the Company and itsemployees, Hefei Home Appliances has established a labor union organization and carriesout its work adhering to the concept of "promoting harmonious development betweenthe enterprise and employees as a core task". The labor union actively reects the opinionsand suggestions of employees and fully safeguards their rights and interests. At the sametime, the labor union continues to promote the attention to the voices of employees in theCompany's decision-making process.In 2024, Homa Appliances continued to implement the system outlined in theNoticeon Further Improving Communication Channels for Employees, further expanding thecommunication channels between employees and the Company. Employees can providetheir opinions and suggestions to the Company through various channels such as thepresident's email, complaint and suggestion image, DingTalk, corporate OA email, andthe "Homa Talks" official account. In addition, Homa Appliances regularly conductscommunication training for grassroots supervisors and employees to strengthen internalcommunication, ensure smooth information flow within the Company, and promoteecient collaboration.
In 2024,TCL Smart Home
In 2024,TCL Smart Home
In 2024,TCL Smart Home
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Build a Happy Workplace2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
TalentDevelopment
TCL Smart Home is committed to establishing a smooth employee promotion channelto ensure the standardization and fairness of employee career development. TCL SmartHome attaches great importance to employee training and development, continuouslyimproving the talent cultivation system, and facilitating the building of a professional TCLSmart Home team through the implementation of diversied talent cultivation projects andthe promotion of internal learning platform construction.Hefei Home Appliances has established a systematic talent cultivation system, adoptinga dual-mentor system that combines scientic selection and systematic training, exiblyallocating resources to build a diversified and high-quality team. To support globalbusiness expansion, Hefei Home Appliances has set up a dedicated overseas factorytraining program to reserve international talents.Number of employee training sessionsconducted
Number of employees participating intraining
Total employee training investment
Total training hours for employees
3,440
330,231
2.8
million RMB
174,321 hours
Homa Appliances has established a two-way career development path, including a"management channel" and a "technical channel", clarifying the promotion criteria andqualifications for both channels to facilitate employee advancement. In the technicalchannel, Homa Appliances conducts professional title promotion reviews for technical staannually in accordance with theManagement Measures for the Evaluation of TechnicalSta Titles. Furthermore, Homa Appliances has launched the "Talent Flow Plan" to providejob transfer opportunities for certain employees in the Company, supporting personaldevelopment.Homa Appliances has established targeted training programs for different levelsof personnel, and formulated internal management systems such as theTrainingManagement MeasuresandInstructor Management Measures. It continuously optimizesthe training process, enhances the abilities of training instructors, and improves theoverall quality of employees. At the same time, Homa Appliances actively promotes theconstruction of the "Homa University" internal learning platform, providing convenient andecient learning channels for company employees.
Talent Training System of Hefei Home ApplianceProgram NameProject Content
Eagle seriestraining programs
Based on the enrollment year, threshold objectives, abilityindicators, etc., we build a tiered leadership developmentsystem from "young eagle", "ying eagle" to "elite eagle"for fresh graduates, as well as a training system for newlyappointed management and high-potential talent. Thisaims to help quickly adapt to the workplace and enhancetheir leadership skills.Newly-appointedseries trainingprograms
For new managers, department heads, directors, and othermanagement personnel, special training sessions will beconducted to focus on enhancing their management skillsand leadership abilities. This will help them better adapt tothe role transition and eectively perform their managementfunctions.
Professionaltraining programs
We regularly carry out professional ability training basedon employees' job nature and work content to ensurethe ecient implementation and smooth execution oforganizational strategic projects.Learningplatform andresourcesdevelopment
We establish diversied public learning platforms such as"T-School", open to all employees, and provide rich learningresources and exible learning methods.
In 2024,TCL Smart Home
Talent Training Program of Homa AppliancesCultivation planPlan content
Outstanding TalentProgram
To facilitate the rapid growth of fresh graduates, Homa Appliances has established a systematic
training system for management trainees participating in the Outstanding Talent Program.
Through one-on-one guidance from professional mentors, management trainees will smoothly
adapt to and integrate into the Company during the one-year mentoring process, completing
their role transition.Talent DevelopmentProgram
The "Talent Development Program" backup team leader program aims to cultivate grassroots
management talents with management capabilities and self-awareness, and reserve frontline
key personnel. The Company has customized courses such as "Role Awareness and Execution"
and "Interpersonal Leadership" for the trainees, and comprehensively enhances the job skills of
backup team leaders through practical sessions such as case analysis, group discussions, and
simulation exercises.
Elite Program
The "Elite Program" (Training Program for Managers) is targeted at newly promoted grassroots
managers. Through various forms such as intensive training, mentor coaching, symposiums,
sharing sessions, and on-the-job practice, combined with practical business issues, it helps
managers smoothly complete their role transition, enhance management skills, and cultivate
and reserve talents for enterprise development.
Talent Gathering Program
Targeting personnel at the 9-12 job levels, we aim to cultivate a group of outstanding
backup middle-level leaders based on the Company's strategic needs. The training content
encompasses classroom instruction, project practice, extreme challenges, and exchange and
sharing, helping trainees enhance their comprehensive abilities. Successful graduates will be
included in the backup middle-level leader talent pool.Outstanding Talent
Program
Targeting engineers, specialists, and team leaders, we aim to cultivate a group of outstanding
backup grassroots leaders in accordance with the Company's strategic needs. The training
encompasses classroom instruction, project practice, extreme challenges, and exchange and
sharing, comprehensively enhancing the comprehensive abilities of the trainees. Those who
successfully complete the training will be included in the pool of backup grassroots leaders.
To support the business development and enhance the manufacturing capabilities of the refrigerator and washing machinemanufacturing plant, Hefei Home Appliances has launched the Rock Project - a backup team leader training program,aiming to reserve more grassroots management personnel and improve employee career development channels.
Case: Hefei Home Appliances launches the Home Appliances Blue Eagle Program
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With the development of the white appliance business, the ODM business has been continuously expanding. To assist theODM marketing center in achieving its business goals and enhance sales capabilities and professionalism, especially inmajor customer business, Hefei Home Appliances has organized the Excellent Marketing Elite Class training program to helptrainees systematically master core skills.
Homa Appliances has launched the "Talent Gathering Program" backup middle-level cadre training camp for on-the-jobdirectors, section chiefs, senior commissioners, and engineers. The program runs from January to October, oering a total of17 courses covering professional knowledge and management skills in multiple elds. There were 37 participants, with anoverall attendance rate of 97%.
Case: Hefei Home Appliances' Combined Value Excellence Marketing Elite Class Training ProgramBlue Eagle Program
Case: Homa Appliances launches the Talent Gathering Program - Backup Middle-level Cadre Training Camp
Care forEmployees
TCL Smart Home provides employees with free dormitory and shuttle bus services, andequips the dormitory area with facilities such as a billiards room, dance hall, and movietheater to enhance their leisure experience. At the same time, the Company regularlyorganizes various cultural and sports activities to further enrich employees' leisure time.TCL Smart Home also oers a range of welfare measures, including overtime allowance,meal allowance, full-attendance bonus, high temperature allowance, and transportationsubsidies.TCL Smart Home strictly abides by relevant laws and regulations, providing employeeswith statutory maternity leave, paternity leave, and breastfeeding leave. Meanwhile, eachproduction base provides nursing rooms for pregnant and breastfeeding employees,paying attention to the special needs of female employees. Hefei Home Appliances hasformulated theRisk Management Procedure for Pregnant and Lactating Mothersandparental leave policies, standardizing the management regulations for pregnant andlactating employees in the Company, and comprehensively implementing the rights andinterests of female employees. Homa Appliances provides exible oce hours for femaleemployees with children under 12 years old, supporting their work-family balance.Homa Appliances pays close attention to the group of employees facing difficultiesor disabilities. The Company encourages its branches to recruit disabled individuals,implements retention incentive programs, and provides employment opportunities fordisabled employees. In 2024, Homa Appliances regularly carried out special employeecondolence and care activities. For the group of impoverished employees, after review,Homa Appliances provides additional subsidies to help employees tide over diculties.
From November to December 2024, Hefei HomeAppliances called on all employees to participate inthe "Inspire Greatness, Leading Future" preliminaryfitness race. Employees were encouraged tocomplete a 25-kilometer race within a period of oneand a half months, and were oered chances to winprizes to boost their enthusiasm for participation.
In 2024, to further fulfill its humanistic care and social responsibility, HomaAppliances expressed its care and support for its employees by providing food,daily necessities, and other essentials to special employees, ensuring that theirlives outside of work are also warm and secure.
Case: "Inspire Greatness, Leading Future" Hefei Home Appliances Preliminary Fitness Race
Case: Homa Appliances conducts special employee care activities
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OccupationalHealth andSafety
SafetyManagementSystem
Occupational health and safety is a crucial pillar for achieving the Company's long-termdevelopment. TCL Smart Home continuously optimizes its EHS governance structure,comprehensively enhancing safety management levels through regular risk identication,high-risk operation control, and improved emergency management capabilities.To prevent occupational diseases, TCL Smart Home emphasizes employee physicalexaminations and strengthens employees' awareness of safety and health throughcontinuous occupational health promotion.TCL Smart Home strictly adheres to laws and regulations such as theLabor Law of thePeople's Republic of Chinaand theWork Safety Law of the People's Republic of China,establishes an internal occupational health and safety management system, andcontinuously improves its internal management system to comprehensively manage theCompany's production safety process. All relevant industries of TCL Smart Home haveobtained ISO 45001 occupational health and safety management system certication, andthis certication system has been extended to the supply chain, requiring suppliers to alsocomply with occupational health and safety management standards.Hefei Home Appliances adheres to the safety management philosophy of "self-management, safety first, safe white appliance, starting from me", actively implementsthe responsibility system for production safety, and establishes an occupational healthand safety committee in accordance with relevant regulations on occupational health andsafety, responsible for researching, deploying, and guiding safety management work. In2024, Hefei Home Appliances updated 32 internal management systems related to safetyto ensure that production safety work is legal and compliant.Homa Appliances adheres to the safety management policy of "following the path ofscientific enterprise development, conducting compliance management, caring for life,and creating a safer and more comfortable environment for employees". It has establishedan EHS safety committee and formulated internal safety management regulations suchasSafety Responsibilities Procedures for Each Department, EHS Infrastructure EvaluationStandards, andSafety and Environmental Management System for Interested Parties,establishing a safety management system with clear levels and responsibilities. In 2024,Homa Appliances set the safety production goals of "zero work-related fatalities", "zeroserious injuries", "zero re accidents", "zero occupational diseases", "zero acute poisoningaccidents", and "minor injury rate ≤2%". By the end of the reporting period, all these goalshad been achieved.
Hefei Home Appliances ISO 45001Certied Occupational Health and SafetyManagement System Certication
Homa Appliances ISO 45001 Occupational
Health and Safety Management System
Certication
Safe Production
To implement relevant laws and regulations such as theWork Safety Law of the People'sRepublic of Chinaand theRegulations on the Safe Production Permit, TCL Smart Homerigorously enforces the safety production inspection system to ensure timely detection andelimination of potential safety hazards, safeguarding production safety and employeehealth. Before the commissioning of new equipment, safety reviews are conducted,and safety operation procedures training is provided to main operators to ensure safeequipment use. Meanwhile, the Company has adopted a series of effective controlmeasures for safety production risk assessment to further strengthen safety managementand prevent accidents.Hefei Home Appliances regularly conducts equipment hazard investigations and performssafety reviews and acceptance checks on new equipment to ensure compliance withsafety standards, by implementing management systems such as theSpecial TreatmentPlan for Equipment and Facility Safety Hazards, the Occupational Hazard Identificationand Evaluation Control Procedure, and the Laws, Regulations and Other IdentificationRequirements for Regulatory Controls.
Safety Review
Risk assessment and countermeasures for safe production at Hefei Home Appliances
The explosion vent of therefrigerant room is missing
New equipment
Hot work for the installation ofnew refrigerator equipment
The refrigerator factory has added two safety managementpersonnel, with one dedicated person supervising andmanaging the construction sites for both day and nightshifts;
Risk identification, approval, and supervision beforehazardous operations.
Add radar scanning monitoring to the blind zone of thesafety protection grating, ensuring full coverage of themonitoring range;
Promote the establishment of equipment operationprocedures and conduct training on these procedures forprimary operators;
The team conducts daily training and disclosure ofoperating procedures during pre-shift meetings;
Team leaders and safety supervisors should strengtheninspections and rectify violations.
Management of limited storage of refrigerant in therefrigerant room;
The modification of adding explosion vents to therefrigerant room poses a relatively low risk;
The safety supervisor conducts routine inspections andsupervision with emphasis.
Fire Risk
Explosion Risk
Risk OfMechanical Injury
Risk of safety
production
Source (risk point)Countermeasures
Safety Production Risk Assessment and Countermeasures for Homa Appliances
Crusher machineRefrigerant roomBox and door blister machineSafety prop, emergency stop, manual control, warning sign
Install gas concentration alarm devices to monitor combustiblegas leaksWarning signs, safety training
Risk from MechanicalIncidents
Operational Risk
Leakage Risk
Work safety riskRisk PointsCountermeasures
Expenses for safe production
.
ten thousand RMB
In 2024,TCL Smart Home
Number of safety inspectionsconductedNumber of major safety productionaccidents
session
session
Homa Appliances has formulated theMeasures for Classified Control of SafetyProduction Risksand established a comprehensive framework for occupational health,safety, and environmental hazard investigation. Through daily inspections, regularinspections, comprehensive safety environment inspections, and special inspections,systematic risk assessments are conducted to further enhance the level of productionsafety management. In 2024, Homa Appliances conducted a total of 380 special safetyinspections and eliminated over 3,000 production safety hazards.
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TCL Smart Home continuously optimizes the management and use process of chemicalsto ensure compliant operation and safe use. Hefei Home Appliances has formulatedand implemented theRegulations on Hazardous Substance Process Management,regularly conducts chemical assessments, and ensures that all operations comply withrelevant standards. In 2024, Hefei Home Appliances passed the certification for Level2 Enterprise of Safety Production Standardization. Homa Appliances has established acomprehensive chemical management system that standardizes chemical managementwork from chemical assessments, inventory management, optimization of use processes,and employee training, ensuring the operational safety of employees in the processof managing and using chemicals. On this basis, Homa Appliances regularly conductschemical management training, covering usage norms, accident prevention, andemergency response, and evaluates employees' safety knowledge and operationalcapabilities through exams, practical drills, and inspections.In terms of high-risk operation control, TCL Smart Home has established strict operatingspecifications for high-risk operations such as hot work, climbing, and cyclopentaneunloading. By installing monitoring equipment and sensors to monitor potential hazardsin real time, it ensures that risks are controllable and fully implements safety productionmanagement measures.Hefei Home Appliances has formulated theRegulations on the Management of HazardousOperations, implementing strict risk identification and approval processes for high-riskoperations. Additionally, it has strengthened the management of operator qualications,ensuring that operators hold relevant certificates to ensure the safety and compliancethroughout the entire operation process. Homa Appliances has further improved itssafety management system through documents such as theSpecial Operations SafetyManagement Systemand theHazard Source Identification, Risk Assessment, andControl Procedure. Simultaneously, the Company has enhanced the safety protectionof mechanical equipment, adopting interlocking devices and visual warning signs toeectively reduce equipment risks.In terms of emergency management, Hefei Home Appliances actively promotes thestandardized implementation of the emergency management system, implementsemergency management procedures for safety accidents, requires all departments torespond collaboratively according to predetermined procedures, quickly controls thesituation, assigns responsibilities, and implements improvements, ensuring the promptrestoration of production safety.Homa Appliances has formulated theEmergency Response Plan for Production SafetyAccidents and Emergency Preparedness and Response Proceduresto provide guidance forthe actions to be taken during emergency events. Each factory area of Homa Appliancesis equipped with re and chemical leakage alarm systems and automatic broadcasts toenhance the eciency of accident identication. Additionally, facilities such as automaticre sprinklers, safety ventilation, re hydrants, emergency lights, and evacuation indicatorsare installed to strengthen the ability to respond to dangerous situations.
In 2024,Emergency drills
Safety production trainings
Number of employees participating insafety training
69,266
In November, Homa Appliances actively organized re safety competitions, publicity training, evacuation drills, and hiddendanger investigations, focusing on the theme of "Fire Protection for All, Life Supreme". These activities aimed to continuouslyenhance employees' awareness of re safety and their ability to prevent and rescue themselves. By strengthening re riskprevention, a strong atmosphere of full attention, learning, and participation in re safety was created, further improvingthe overall level of re safety management.
Case: Homa Appliances launches a series of activities for the "119 Fire Prevention Awareness Month"
In May, Hefei Home Appliances carried out a fire prevention month activity with the theme of "Prevention First, LifeSupreme". During the activity, relevant personnel conducted a comprehensive safety inspection of key re preventionareas in the workshop (such as foam storage areas and densely populated areas), identifying 6 re hazards. In addition,on May 25, the Company selected 10 capable personnel from various workshops to form the "Hefei Home AppliancesFire Emergency Rescue Team", further enhancing emergency rescue capabilities.
Case: Hefei Home Appliances carries out fire prevention awareness month activity
On June 5, Hefei Home Appliances held its kick-o meeting for the Production Safety Month, with the theme of "Everyone Talksabout Safety, Everyone Knows How to Respond to Emergencies - Keep the Life Channel Open". During the meeting, participantswatched promotional videos for the Production Safety Month and learned relevant safety knowledge and emergency responseskills. The meeting emphasized the need to strictly implement production safety regulations, strengthen risk managementand control, and conduct thorough investigations of hidden dangers, to ensure the safety and compliance of the productionenvironment.
Case: Hefei Home Appliances held a kick-off meeting for the Production Safety Month
On June 15, Homa Appliances held a safety production month knowledge training session with the theme of "Keepingthe Life Channel Unobstructed for Education and Publicity". The training aimed to enhance employees' awareness ofthe importance of keeping the life channel unobstructed, strengthen emergency evacuation and emergency responseskills, and ensure the rapid and safe evacuation of personnel in case of emergencies, thereby safeguarding the lives ofemployees.
Case: Homa Appliances conducts knowledge training for the Safety Production Month
Safety Production and Emergency Management
TCL Smart Home is committed to strengthening the construction of a safety production culture. By regularly conducting varioussafety activities and safety production month themed training, it continuously enhances employees' awareness and knowledge ofoccupational health and safety. Hefei Home Appliances has formulated theRegulations for Occupational Health and Safety TrainingManagementto standardize the eective implementation of safety training activities. Meanwhile, Homa Appliances requires employeesto complete three-level safety education before employment, and includes training on emergency rescue, re safety, mechanical safetyrisk control, and other topics in subsequent training.
Safety Culture
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OccupationalHealthManagement
TCL Smart Home has always been committed to providing comprehensive health andsafety protection for its employees, and strictly adheres to the occupational diseaseprevention regulations in all operational locations. To effectively reduce the risk ofoccupational diseases, the Company requires employees in relevant positions toregularly participate in occupational disease prevention training, ensuring they possessthe necessary prevention and response capabilities. In high-risk work environments,employees must wear personal protective equipment such as earplugs and dust masksto ensure safety during work. Furthermore, the Company also requires employees toregularly undergo pre-employment, in-service, and post-employment occupational healthexaminations, in order to promptly identify and prevent potential occupational health risks.In order to further enhance the overall health level of employees, TCL Smart Homeregularly invites medical personnel to conduct health lectures and popularize medicalknowledge about common diseases, helping employees strengthen their awareness ofdaily health management, thereby promoting their long-term health and well-being. Nooccupational disease incidents have occurred at TCL Smart Home.
On June 6 and June 14, Homa Appliances held Red Cross rst aid training sessions at the parts sub-factory and the secondsub-factory training room respectively, with participants including employees and management personnel from each sub-factory. The training covered basic first aid skills, cardiopulmonary resuscitation (CPR), and trauma treatment, aiming toenhance employees' emergency response and rst aid capabilities.
Case: Homa Appliances conducts Red Cross first aid training
On August 29, Hefei Home Appliances, in collaborationwith the Red Cross Society of China, Feixi, organized amedical emergency training. The training combinedonline theory with oine practical operations, coveringemergency skills such as cardiac resuscitation, AEDuse, and trauma care. A total of 92 employees signedup for the training, with 75 actually participating.Among them, 74 successfully passed the assessmentand obtained the qualication of rst aider.
Case: Enhancing employees' safety awareness and self-rescue ability - Hefei Home Appliances conducts medical emergency training
Physical examination coveragerate for employees
100%In 2024,TCL Smart Home
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SDGs addressed in this chapter
Building aHarmonious Society
SOCIETY
TCL Smart Home actively fulfills its social responsibilities,continuously establishes and improves its supply chainmanagement mechanism, participates in community publicwelfare, promotes the coordinated development of the valuechain and the community, and contributes to the harmoniousdevelopment of society.
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ResponsibleSupply Chain
Supply ChainManagement
TCL Smart Home has always adhered to the principles of "honesty and trustworthiness,fairness and justice, equality and mutual benefits", and places great emphasis onsupply chain management and supplier empowerment to ensure efficient operationand transparent management of the supply chain. At the same time, the Company alsofocuses on responsible mineral management, is committed to promoting the sustainabledevelopment of value chain partners, and contributes to the virtuous cycle of the industryecosystem.TCL Smart Home is committed to building an efficient and flexible supply chainmanagement system. Through systematic supply chain risk management and theapplication of digital supply chains, TCL Smart Home eectively enhances the eciency ofsupply chain resource allocation, continuously optimizes operational cost management,and helps enterprises achieve sustainable development.CategoryHefei Home AppliancesHoma Appliances
Supply chain risk
management
Establish a collaborative decision-makingmechanism for front- and back-oce risks, andintroduce multiple departments, including theprocurement committee, to manage supplychain risks.
Continuously monitor price fluctuations of rawmaterials and key components, and use theannual cost reduction KPI as a driving force topromptly report to the procurement committeefor procurement decisions.
By adopting refined annual planning, KPIassessment, and a hilltop project mechanism,supply chain risks are eectively allocated.
Introduce new suppliers in a timely manner toeliminate dependence on a single supplier
Establish a close partnership with suppliers, andthrough information sharing and collaborativework, provide early warnings and addresspotential risks
Strengthen inventory management andbuffering strategies, establish inventory bufferzones or safety stock, and ensure a certainlevel of production capacity and customersatisfaction is maintained in the event of supplychain disruptions. For risk materials, preparematerial inventory in advance; achieve a 100%completion rate for inventory preparation.
Reduce dependence on a single supplier,enhance the flexibility and competitiveness ofthe supply chain; open at least two suppliers forsimilar materials.
Flexible supplychain
A supply and demand interlocking mechanism(S&OP production and sales collaboration) aswell as a material completeness and slow-moving inventory early warning mechanismhave been established. Data-driven forecastingand procurement planning for different cyclesare carried out through key indicators such ascycle, strategy, and ow rate.
By making reasonable predictions forraw material demand and implementingdifferentiated management of long-term andshort-term materials, we can prepare materialsin advance or trial-produce materials accordingto work orders.
Digital supply chain
Integrate supply chain management throughthe SRM system, and build a full-processdigital platform covering modules such assupplier management, procurement demandmanagement, sourcing management, andforecast management.
The SRM system integrates e-commerce, datamining, and collaborative technologies to createan efficient digital supply chain managementsystem.
Localizedprocurement
Include delivery distance in the assessment fornew supplier admission
The bulk supply resources are located within aradius of about 50 kilometers, with suppliersaccounting for more than 60% of the total
80% of the materials are supplied by suppliersaround the Pearl River Delta.
In terms of supplier admission, Hefei Home Appliances has established theSupplierCertication Management Processand implemented a new supplier introduction processconsisting of "four stages and fourteen steps" to comprehensively review supplierqualifications. Hefei Home Appliances requires suppliers to meet the SA 8000 socialresponsibility standard, as well as ISO 14001 environmental management certication, ISO9001 quality management system certication, and ISO 45001 occupational health andsafety management system certication.Based on this, Hefei Home Appliances incorporates environmental and social factors intosupplier qualification assessments, conducting comprehensive evaluations in terms ofproduct quality, research and development, and environmental protection. In terms of theenvironment, Hefei Home Appliances evaluates suppliers based on theEnvironmentalProtection of Restricted Substances - On-site Inspection Checklist, giving preference tosuppliers with a QC08000 hazardous substance management quality system and activelyengaged in environmental protection eorts. In terms of society, Hefei Home Appliancesconducts a comprehensive review of suppliers' labor rights and occupational health andsafety management based on theSupplier Social Responsibility Inspection Checklist.Homa Appliances has established theRelated Party Safety and EnvironmentalManagement System, which conducts comprehensive assessments covering qualications,business, and product quality during the supplier qualification process. For certain keysuppliers, Homa Appliances reviews and evaluates the environmental risk factors of eachvendor based on theVendor Environmental Safety Questionnaire.TCL Smart Home adheres to the implementation of responsible procurement, requiringall suppliers to effectively fulfill their responsibilities and obligations, and collaboratewith suppliers and partners to build a clean industry chain. Hefei Home Appliancesrequires all suppliers to strictly adhere to theTCL Supplier Code of Conductand sign the
Integrity Agreement. To safeguard the rights and interests of various small and medium-sized enterprises, Hefei Home Appliances signs cooperation contracts with all suppliers,clarifying payment methods and payment terms, and executes all payments accordingto the contracts. Homa Appliances continues to strengthen the management of suppliersand partners, clarifying anti-corruption requirements in contracts and retaining the rightto terminate cooperation; it conducts regular assessments of suppliers and partners toensure their continued compliance with the Company's anti-corruption requirements.Homa Appliances requires all business partners (including but not limited to suppliers,agents, distributors, logistics providers, etc.) to sign theHoma Appliances Anti-CommercialBribery Agreement.
SupplierManagement
TCL Smart Home has been continuously establishing and improving its suppliermanagement system, refining the supplier access, review, and exit mechanisms, andstandardizing relevant institutional references to create a responsible supply chain. HefeiHome Appliances has established a procurement management committee, chairedby the general manager and vice-chaired by the supply chain director, and includingrepresentatives from product lines, procurement, finance, quality, and audit. Thecommittee integrates collaborative work across production, research and development,quality, and procurement to make decisions and effectively manage procurementoperations. The procurement management committee has a category managementmechanism (CEG team) responsible for executing procurement-related work. The suppliermanagement work of Homa Appliances is centered around the supply department and isdivided into eight material management teams according to dierent material categories,promoting rened supplier management.
Supplier AdmissionIn 2024,TCL Smart Home
The environmental and social auditcoverage rate of suppliers
In 2024, Hefei Home Appliances100%
Total number of suppliers
Number of suppliers inChinese Mainland
Number of suppliers inoverseas regions
Number of suppliers in HongKong, Macao, and Taiwan regions
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TCL Smart Home focuses on rened and dierentiated management, continuously promoting the graded and classied managementof suppliers. Hefei Home Appliances implements graded and classified management of product categories and suppliers basedon theTCL Industrial Product Category and Supplier Graded and Classified Management Process, combining business needs withthe implementation of QCDT (Q: Quality; C: Cost; D: Delivery; T: Technology) four-dimensional graded and classied management.Homa Appliances conducts graded and dierentiated management of suppliers based on material attributes and cooperation depth,regularly updating the graded and classied standards to adapt to changes in business needs.
In terms of everyday supplier management, TCL Smart Home and its various businesses formulate the annual supplier audit plan,hold regular supplier quality review (QBR), to evaluate the supplier's business performance and development, which is included in theenvironmental, social and governance audits. In the event that they fail to take rectifying measures, TCL Smart Home will either ceasecooperation with the supplier or impose relevant penalties.Hefei Home Appliances regularly organizes assessments for suppliers based on QCDT, category division scoring method, and suppliergraded and classied scoring method, and adjusts the supplier hierarchy, grading, and quota proportion based on the assessmentresults. For strategic categories and strategic suppliers, Hefei Home Appliances provides cooperation and priority. For suppliers thatfail to meet the assessment standards, Hefei Home Appliances will require them to make rectications within a specied period. Forsuppliers who fail to implement rectication measures eectively, cooperation will be terminated or relevant penalties will be imposed.For suppliers who violate integrity, nancial, or other issues, Hefei Home Appliances will immediately eliminate the involved suppliers.In 2024, there were no cases of unqualied suppliers being eliminated by Hefei Home Appliances.Homa Appliances conducts regular quarterly assessments of suppliers, covering aspects such as product quality, usage tracking,delivery timelines, and service attitude, and regularly updates supplier classification. For suppliers that have significant negativeenvironmental impacts, Homa Appliances will urge them to implement rectication measures and submit rectication reports. In 2024,Homa Appliances did not eliminate any unqualied suppliers.
Supplier Management
Supplier Classied Management Measures of Homa Appliances
Get to know their environmental status and obtain the corresponding information on itspollution generation and pollution control.
Promote Homa Appliances' environmental policies and, if necessary, make requests orrecommendations for environmental management.
Conduct publicity and educational activities, to help suppliers understand the Company'senvironmental policies and the related environmental management regulations.
Sign agreements to put forward Homa Appliances' environmental managementrequirements.
Verify and confirm the performance of all suppliers annually or at random, forming theQuestionnaire for Key Inuential Related Parties.
As soon as a non-compliance is identified, suppliers are required to propose correctivemeasures, and Homa Appliances supervises the implementation of those measures.
Provide information on Homa Appliances' environmental policies, goals, and targets to therelated parties upon request
Key InuentialRelated Parties
Temporary Non-inuential RelatedParties
General Inuential
Related Parties
CategoryManagement measures
ResponsibleMineral
SupplierEmpowerment
TCL Smart Home strictly adheres to the requirements of the Code of Conduct ResponsibleBusiness Alliance (RBA) and other standards. Regarding the use of mineral resourcessuch as nickel, cobalt, manganese, lithium, graphite, mica, copper, and aluminum thatmay be involved in the production and operation process, the Company resolutely doesnot procure or support conflict minerals from conflict areas, and also explicitly requiressuppliers not to use mineral resources from conflict areas. The Company ensures thelegality of procurement activities through due diligence and other means.In 2024, Hefei Home Appliances updated itsStandard for Conict Mineral Management,adding control requirements for key minerals such as cobalt and mica. Additionally,Hefei Home Appliances requires suppliers to sign theTCL Declaration of Conformity forProhibited and Restricted Substancesand conduct regular training on conflict mineralsto enhance suppliers' awareness of responsible mining practices. If any supplier is foundto be using conflict minerals, Hefei Home Appliances will recall products on sale, sealrelevant inventory, and conduct a re-evaluation of the supplier in accordance with thequality agreement. In November 2024, Hefei Home Appliances provided conict mineraltraining for suppliers through a diverse "online + oine" training channel, covering 100%of the Company's suppliers.With "collaborative innovation and value co-creation" as its core, TCL Smart Homeleverages resource sharing and technical support to assist suppliers in optimizingoperations, enhancing quality, and promoting green development, jointly building anecient, stable, and sustainable supply chain ecosystem.
Suppliers accept due diligenceon conict minerals
In 2024, Hefei Home Appliances
In 2024,Hefei Home Appliances
Number of supplier trainingsessions
Number of training suppliers
100%
In November 2024, Hefei Home Appliances helda "Huada Semiconductor" thematic training. Thedirector and engineer team of Huada Semiconductorwere invited to give lectures, with the participationof Hefei Home Appliances' supply chain and R&Ddepartments. The training focused on the applicationof semiconductor technology in the home applianceeld, aiming to enhance the technical capabilities of theteam and promote cooperation between both parties intechnological innovation and supply chain collaboration.
On December 13, 2024, TCL Smart Home held a "Procurement Domain Empowerment"Thematic Training, with the participation of supply chain, R&D, and quality departments.The training focused on enhancing procurement skills, supply chain collaboration,and quality management innovation, aiming to strengthen cross-departmentalcollaboration capabilities, improve operational efficiency, and provide support forprocurement strategy optimization and supply chain management.
Case: "Procurement Domain Empowerment" Thematic Training
Case: "Huada Semiconductor" thematic training
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Social PublicWelfare
TCL Smart Home actively fulfills its corporate social responsibility and supports thedevelopment of social welfare undertakings while uniting social forces by organizingpublic welfare activities and encouraging employees to participate in voluntary services.Hefei Home Appliances focuses on science and technology education, organizing sciencepopularization and research activities for students of all ages. It integrates abstractscientific knowledge into vivid and interesting practical scenarios, helping studentsenhance their scientic literacy through experience and stimulating their strong interestand enthusiasm for exploring science and technology education. Homa Appliances caresabout vulnerable groups such as the impoverished and disabled individuals, encouragingits employees to participate in public welfare volunteer activities to provide assistance andsupport to these vulnerable groups.
In 2024,TCL Smart Home
Carry out employee publicwelfare activities
events
Number of employee volunteersinvolved
person-times
In November 2024, Hefei Home Appliances invited students from the University ofScience and Technology of China to visit the TCL Smart Home Appliances (Hefei)Industrial Park, creating a public welfare research and study trip for the studentsaimed at exploring the mysteries of technology and experiencing the charmof smart manufacturing. This event provided a platform for students from theUniversity of Science and Technology of China to closely interact with cutting-edgetechnology.
Case: Hefei Home Appliances leads students from the University of Science and Technology of China to explore the charm of technology
In December 2024, TCL Smart Home Appliances (Hefei) Industrial Park supported the industrial research and study activitiesorganized by the TCL Charity Foundation, hosting a group of teachers and students from Feicui Lake Junior High School under theHefei No. 8 Middle School Education Group. The event guided the students to visit the industrial park and showcased the productionprocess, exploring the beauty of industry and sparking their dreams of innovation.
In September 2024, the general party branch of Homa Appliances, together with the Zhongshan Blood Donation Oce and thetown Red Cross, organized a special volunteer service activity for employees, aiming to promote the volunteer spirit of "dedication,fraternity, mutual assistance, and progress" and spread positive social energy. The activity attracted a total of 30 participants.
Case: Homa Appliances organizes special voluntary blood donation service activities for employees
Case: "Exploring Industrial Tour: Innovation and Dreams Take Off" public welfare activity
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SDGs addressed in this chapter
CorporateGovernance
GOVERNANCE
Robust corporate governance is the cornerstone for sustainabledevelopment of enterprises. TCL Smart Home adheres tothe values of integrity, transparency, and respect, persists inadhering to the leadership of the Party, continuously optimizesthe top-level design of corporate governance, establishesa compliant internal control and risk management system,eectively safeguards the rights and interests of all stakeholders,and promotes the steady progress of the enterprise.
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Corporate Governance2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
Party BuildingLeadership
CorporateGovernance
Corporate governance is the cornerstone of a company's steady development. TCL SmartHome has established a sound corporate governance structure, clarifying the divisionof responsibilities among the general meeting of shareholders, the board of directors,the board of supervisors, and the management team, and continuously promoting thestandardization and sustainable development of corporate governance. At the same time,the Company strengthens communication with investors and other stakeholders, regularlyenhancing the transparency of information disclosure, and ensuring the Company's steadydevelopment within a framework of compliance and transparency.
TCL Smart Home fully leverages the political core role of the party organization and theexemplary vanguard role of party members, regarding party building as a crucial drivingforce for leading the Company's high-quality development. The Company continues tostrengthen the foundation of party building, strictly implement relevant systems, andcontinuously enhance the standardization level and organizational execution capabilityof the general party branch. Each party branch thoroughly implements the decisionsand deployments of the Party Central Committee and higher-level party committees,continuously optimizes the development strategy, transforms the advantages of partybuilding into the core competitiveness of the enterprise, and promotes the deepintegration of party building and enterprise development.During the reporting period, TCL Smart Home actively organized various party-buildingactivities, organizing 43 events in total, including activities such as member meetings andstudy sessions. In 2024, TCL Smart Home actively respond to the spirit of the 20th NationalCongress, established the Homa Women's Federation at Homa, integrating "Her Strength"into the Party.
On April 24, 2024, the Party branch of Hefei Home Appliances organized a Party discipline learning and education activity.The meeting delved into the important exposition of General Secretary Xi Jinping on comprehensively strengtheningthe discipline construction of the Party, conveyed the spirit of theNotice on Carrying out Party Discipline Learning andEducation in the Whole Partyissued by the General Oce of the CPC Central Committee and the meeting of the CentralLeading Group for Party Building Work, and mobilized and deployed the Party discipline learning and education work ofthe Group Party Committee. This activity further strengthened the discipline awareness of Party members, promoted the in-depth development of Party discipline education, and provided a strong guarantee for enhancing the combat eectivenessand cohesion of grassroots Party organizations.
To thoroughly implement the spirit of the 20th National Congress of the Communist Party of China, Homa Appliances placesgreat emphasis on the protection of the rights and interests and career development of female party members. On June 15,Homa Appliances' first Women's Federation Inaugural Ceremony and the first Women's Congress were successfully held,marking the ocial establishment of the Homa Women's Federation. The Homa Party Branch and the Women's Federationwill closely integrate with the overall development of the enterprise, fully leverage the unique advantages of female partymembers, inject strong "women's power" into the transformation, upgrading, and high-quality development of HomaAppliances, and jointly contribute women's wisdom and strength to local economic and social development as well as the"Hundreds of Counties, Thousands of Towns, and Tens of Thousands of Villages High-Quality Development Project".
Case: Learning Party discipline to strengthen awareness, uniting efforts to promote improvement
Case: "Women's Power" Boosts High-quality Development
Board of DirectorsGovernance
TCL Smart Home strictly adheres to theCompany Law of the People's Republic of China,theSecurities Law of the People's Republic of China, theRules Governing the Listing ofShares on Shenzhen Stock Exchange, and other relevant laws and regulations, as well asthe relevant provisions of the stock exchange. It has formulated regulations such as theArticles of Association, theRules of Procedure for the Board of Directors, theWork Systemfor Independent Directors, and theRules of Procedure for the Board of Supervisorstostandardize the work of the Company's board of directors.TCL Smart Home has established a corporate governance structure consisting of thegeneral meeting of shareholders, board of directors, board of supervisors, and the seniormanagement. Rules of procedure for each level have been established to ensure eectivechecks and balances in decision-making, execution, and supervision. Directors andsupervisors are nominated by the nominating body and elected by the general meeting ofshareholders. The board of directors comprises the Strategy Committee, the NominationCommittee, the Remuneration and Appraisal Committee, and the Audit Committee.Members of the special committees are elected by the Board of Directors to ensure thestandardization and sustainable development of corporate governance. Currently, theCompany's Board of Directors has seven directors, including three independent directors.The Board of Supervisors has three members.The Company actively builds a diverse Board of Directors, balancing members' gender,age, professional experience, cultural and educational backgrounds, and enhancingthe eectiveness of decision-making and governance to promote sustainable corporatedevelopment. Currently, there are two female directors on the Board.
Female representation on the Boardof directors of TCL Smart Home
42.86%
General Meeting ofShareholdersBoard of DirectorsGeneral Manager
Board ofSupervisors
StrategyCommitteeNominationCommitteeRemuneration andAppraisal CommitteeAudit Committee
Internal Audit and InternalControl Department
Homa Appliances BusinessDepartment
Homa Appliances BusinessDepartment
General Manager OceFinancial ManagementDepartment
Administration and HRDepartment
Legal ComplianceDepartment
Zhongshan Oce
Securities Department
Secretary of theBoard of Directors
In 2024, TCL Smart Home
In 2024,TCL Smart Home
Conducted Party-building activities
Number of Board of Directorsmeetings
Number of general meetings ofshareholders
Number of the Board ofSupervisors meetings
Session
Session
Session
8182
Corporate Governance2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
Investor Rights
TCL Smart Home has always attached great importance to the protection of investors'rights and interests, strictly abiding by relevant regulations such as theCompany Law ofthe People's Republic of Chinaand theSecurities Law of the People's Republic of China,and has established anInvestor Relations Management System. The Company has setup a dedicated "Investor Relations" section on its ocial website to provide investors withconvenient and accessible information disclosure services. At the same time, TCL SmartHome also regularly communicates with investors and other stakeholders through investorrelations emails, phone calls, and the "Interactive Easy" section of the Shenzhen StockExchange. In 2024, the Company held a total of two performance briengs and conducteddozens of roadshows and investor reception activities. In addition, the Company alsoissued sixInvestor Relations Activity Record Formsto further enhance informationtransparency and ensure that investors' rights and interests are fully protected.At the same time, TCL Smart Home places great importance on investor education andawareness, actively participating in activities such as the Investor Protection Month andthe National Investor Protection Publicity Day organized by the China Securities RegulatoryCommission and the Shenzhen Stock Exchange. These initiatives aim to help investorsbetter understand cutting-edge laws, regulations, and industry practices, thereby reducinginformation barriers.TCL Smart Home has always strictly adhered to the standardized process regulationof information disclosure, continuously enhancing the management level and qualityof information disclosure to ensure transparency and fairness and fully protecting thelegitimate rights and interests of investors. Based on relevant laws and regulations suchas theCompany Law of the People's Republic of China, Measures for the Administration ofInformation Disclosure of Listed Companies, andSelf-Regulatory Guidelines for CompaniesListed on Shenzhen Stock Exchange, and in combination with the actual situation ofthe Company, the Company has formulated theManagement System for InformationDisclosureand theManagement System for the Preparation and Disclosure of RegularReports, providing systematic norms and guidance for information disclosure work.Through regular reports, announcements, annual reports, and other means, the Companydiscloses key content such as governance structure, internal management, and risk controlto shareholders, investors, and the public, enhancing transparency, strengthening investortrust, ensuring compliant operations, and optimizing the market environment.For small and medium-sized investors, TCL Smart Home has taken multiple measuresto fully protect their rights and interests. TCL Smart Home continues to standardize theprocedures of the General Meeting of Shareholders, improve the election mechanismfor directors and supervisors, and enable small and medium-sized shareholders to fullyexercise their voting rights. Among them, the second extraordinary General Meetingof Shareholders in 2024 adopted a combination of on-site and online participation tofacilitate shareholder participation. In addition, through activities such as roadshowsand investor collective reception days, TCL Smart Home strengthens investor relationsmanagement, maintains communication with small and medium-sized investors, andanswers their questions.
Legal Complianceand RiskManagement
CompliantOperation
TCL Smart Home has established a comprehensive compliance and risk managementsystem, adopting multi-level risk management strategies and precise response measuresto eectively ensure that all business activities comply with regulatory requirements andpromote the steady development of the Company in a complex environment.
TCL Smart Home strictly adheres to local ethical, moral, relevant laws as well as theArticles of Association and has established a comprehensive compliance and internalcontrol management system. It continuously refines and enhances its compliance andinternal control management functions to ensure that business activities and businessengagements are compliant, thereby safeguarding the Company's stable operations. In2024, TCL Smart Home did not experience any violations of laws and regulations.To fulfill various compliance requirements, Hefei Home Appliances has establishedan Internal Control Committee and designated dedicated personnel to manage theCompany's compliance and internal control work. The Company has formulatedinstitutional documents such as theInternal Control Management Manual of TCL HomeAppliances (Hefei) Co., Ltd. and theArticles of Association of TCL Home Appliances (Hefei)Co., Ltd., regularly updating and reviewing core processes including organizationalstructure design and adjustment, major decision-making, as well as processes in multiplebusiness areas such as finance and procurement, achieving a cycle from strategyformulation to continuous monitoring and evaluation. At the same time, Hefei HomeAppliances attaches great importance to departmental position checks and balances,seal management, risk assessment, and information management, ensuring that theCompany's operations are compliant, ecient, and risk-controllable.Homa Appliances has established a management structure consisting of the Board ofDirectors, internal functional departments, and business departments. The Board ofDirectors is responsible for the overall supervision and decision-making of the internalcontrol system, the internal control functional departments are responsible for theinternal control of finance and operation management, and the business departmentsare responsible for implementing specific internal control measures within theirown departments to ensure that all business processes comply with internal controlrequirements. Homa Appliances regularly updates its internal policies based on changesin international and domestic policies, and ensures the effective implementation of theCompany's compliance policies and procedures through internal audit reviews.In combination with export business requirements, Homa Appliances attaches greatimportance to cross-border compliance requirements. Homa Appliances strictly adheresto domestic and international laws and regulations such as theForeign Corrupt PracticesAct(FCPA) and theCustoms Law of the People's Republic of China, and has formulated theExport Compliance Systembased on internal needs and market conditions to ensure thatproduct technical standards meet local legal and regulatory requirements.TCL Smart Home has established a comprehensive internal compliance review mechanism.Hefei Home Appliances ensures compliance management through regular and specialreviews in an all-round and multi-dimensional manner. The Company conductscomprehensive reviews annually to systematically audit the overall operational complianceof the Company. For new business development, implementation of major projects, andsignificant changes in laws and regulations, special reviews are promptly initiated toquickly respond to potential compliance risks and ensure the Company operates steadilywithin the compliance framework. Homa Appliances has established a flexible reviewfrequency based on dierent review scopes and content, including daily, quarterly, andannual reviews, to ensure efficient implementation and continuous improvement ofcompliance management.Meanwhile, TCL Smart Home actively promotes compliance training and culturalconstruction, striving to create a favorable corporate compliance culture environment,strengthen the compliance awareness of all employees, and integrate compliancerequirements into all aspects of daily operations. In 2024, Hefei Home Appliancesconducted three sessions of compliance and internal control training.8384
Corporate Governance2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
Risk Management
TCL Smart Home has established a risk management organizational structure with clear responsibilities and distinct levels, adoptinga "three lines of defense" risk management framework to clarify the responsibilities of each department in risk identification,management, and review, ensuring eective response to potential risks in daily operations.
On this basis, Hefei Home Appliances has introduced a risk matrix, database, and early warning system to regularly analyze key riskdata, update risk maps, and utilize assessment models to monitor market, nancial, and operational risks, ensuring timely and eectiveresponses to high-risk areas of the enterprise. Based on the "three lines of defense", Homa Appliances has further formulated theRiskManagement Policy, Risk Identication and Assessment System, andRisk Monitoring and Reporting System, clarifying the Company'srisk management objectives, risk identication processes, and risk reporting requirements, and strengthening the standardization andtransparency of risk management.
The three lines of defense for risk management in TCL Smart Home
Internal audit department
Risk management andinternal control department
Business departments
Identify and assess risks during business operations;
The procurement department reduces the risk of rawmaterial supply by screening high-quality suppliers.
Formulate and refine relevant systems, policies, andprocedures;
Oversee the risk management work of the first line ofdefense;
Regularly carry out training work.
Through regular audits, we inspect the operational status ofvarious business areas, identify potential risks, and provideimprovement suggestions to management;
Responsible for independent auditing, identifying andrectifying issues, and continuously following up on andimproving progress.
First Defense Line
Third Defense Line
Second Defense Line
Three defense linesDepartmentMain responsibility
Through business risk analysis and internaland external audits, identify potential market,operational, financial, legal, and compliancerisks of the Company, establish a risk trackinglist and archive, and track the development andchanges of risks
Based on the Company's risk exposure,allocate relevant resources to carry outrisk control and governance work such asprocess construction and special sorting, inorder to reduce the overall risk level of theCompany
The audit department regularly organizesrisk reporting to the management andthe Board of Directors, reporting onthe progress and results of various riskmanagement eorts, and conducts specialreports on major risk events.
Establish a fixed risk assessment andanalysis, utilizing data and informationsystems to analyze the probability andimpact of risks. Evaluate the likelihood andimpact of potential risks across variousbusiness and functional departments, andcategorize and grade the risksTCL Smart Homefull-process riskmanagement system
Risk identication
Risk control and governance
Risk assessmen
Risk monitoring and reporting
Anti-corruption and Business ethicsAnti-corruption
TCL Smart Home strictly adheres to theUnited Nations Convention against Corruptionandrelevant national laws, always maintaining a "zero tolerance" attitude towards corruption.By continuously improving the construction of internal anti-corruption systems, smoothingreporting channels, perfecting accountability mechanisms, and conducting regular anti-corruption training and publicity, the Company implements anti-corruption and businessethics work. In 2024, TCL Smart Home was not involved in any corruption litigation cases.Hefei Home Appliances has a strict management system that clearly denes various typesof corrupt behaviors and their handling methods. Employees involved in criminal actssuch as corruption and bribery, who have been sentenced, will be dealt with seriously inaccordance with the law to ensure a clean and honest internal environment. In terms ofwhistleblower protection, Hefei Home Appliances has set up a 24-hour complaint andreporting channel in the OA system and email. For reported leads, the Company sets a24-hour response time limit for reporting leads, establishes a special investigation teamto intervene in the investigation and evidence collection, and publicizes the investigationresults on the intranet. Meanwhile, the Company pays attention to whistleblower protectionwork, strictly keeps whistleblower information confidential, and prohibits any extortion,threats, and retaliation against whistleblowers.Homa Appliances has established a comprehensive anti-corruption management system,forming an anti-corruption committee composed of senior management personnel tomanage the Company's anti-corruption strategies and supervise their implementationfrom top to bottom, effectively preventing, identifying, and responding to corruptbehaviors. Homa Appliances has formulated internal regulations such as theAccountabilityManagement Regulationsand theIntegrity Management Code, explicitly prohibiting anyform of corrupt behavior, clarifying the "red lines" of operation and management, strictlyprohibiting abuse of power for personal gain, fraud and other violations, and requiringall employees, suppliers, and partners to comply with laws, regulations, and companypolicies.In terms of the construction of the reporting mechanism, Homa Appliances encouragesemployees, business partners, and other individuals to provide tip-os in their real names.It has established various feedback channels, including letters and visits, employeesuggestion boxes, dedicated phone lines, WeChat complaints, and more, to ensurethe smooth operation of the reporting channels. In theAccountability ManagementRegulations, Homa Appliances clarifies specific matters related to the protection ofreporters, requiring strict condentiality of reporter information and reporting materials,and prohibiting the disclosure, investigation, or identification of reporters, so as tosafeguard their rights and interests.TCL Smart Home is committed to fostering a culture of integrity within the Company. Itconducts anti-corruption training to educate employees and enhance their awareness. In2024, TCL Smart Home conducted two anti-corruption training sessions, with a total of 620participants.
Anti-unfairCompetition
TCL Smart Home strictly adheres to theAnti-Monopoly Law of the People's Republic ofChinaand the Anti-Unfair Competition Law of the People's Republic of China, continuouslyreviews its business practices, follows market development trends, resolutely preventscommercial bribery and unfair competition, and safeguards fair market competition.Hefei Home Appliances has established a comprehensive anti-monopoly and faircompetition risk management system, encompassing risk monitoring, internal compliancereviews, regular legal training, and the formulation of relevant emergency responseplans. This system eectively mitigates various risks of monopoly and unfair competition,ensuring that business activities always comply with legal and regulatory requirements.Homa Appliances strictly prohibits unfair competition behaviors such as false advertising,commercial bribery, infringement of trade secrets, and defamation of competitors. Italso forbids actions that violate the Anti-Monopoly Law, such as entering into monopolyagreements, abusing market dominance, and implementing unfair pricing. To eectivelypromote fair market competition, Homa Appliances has established a comprehensiverisk plan, regularly conducts risk assessments on the Company's anti-monopoly eorts,and embeds anti-monopoly compliance review processes into internal managementcooperation procedures such as pricing, sales, procurement, and cooperation. Throughmultiple measures and practical actions, the Company practices anti-unfair competition.
In 2024, TCL Smart Home
Conducted anti-corruptiontraining sessionsTotal participants of anti-corruptiontraining sessions
participants
8586
Corporate Governance2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
Information Security
Information Security and Privacy Protection
TCL Smart Home has standardized its management system and enhanced its network security protection capabilities through acomprehensive information security system. Hefei Home Appliances has formulated and implemented internal systems such as the
Information System Security Plan, Information Security Management Policy, andEncryption and Decryption Systemto standardize theCompany's information management system. Homa Appliances follows ISO/IEC 27001 and Classied Protection 2.0 standards, and buildsan information security management system based on business risks. The Company has established a comprehensive data securitymanagement framework, with a management system led by the president, guided by the IT management department, and jointlyparticipated by various departments, to ensure the eective implementation of data security work.
TCL Smart Home actively promotes the construction of information security culture. By optimizing the Company's informationmanagement system and strengthening employee security awareness training, it builds a protective barrier for enterprise informationsecurity and adheres to the enterprise security bottom line.
Leadership
Group
Teamleader
President
Responsible for approving the overall information security strategy,management norms, and technical standards of the Company, as wellas making decisions on major information security incidentsDeputy
teamleader
Head of IT managementdepartment
Responsible for overall information security planning, the reviewof management standard, and the coordination of informationsecurity construction, and participating in decision-making regardinginformation security incidents.
ExecutionGroup
Information
SecurityGroup
Relevant personnel of ITmanagement department
Responsible for the implementation of information security systemconstruction, system formulation, and technical support work.BusinessGroup
Heads of departments/sub-factories
The head of each department is the primary responsible personfor information security within their department, responsible forimplementing and supervising information security standards withinthe department, and approving information security permissions.Steering
Group
Responsible for checking the implementation of information securitystandards, regularly reporting relevant issues and implementingincentive measures, while also preparing supervision reports.
TCL Smart Home has established a comprehensive network security protection system, strengthening risk monitoring, access control,and data protection to ensure the safe and stable operation of its business. Hefei Home Appliances has optimized its networkarchitecture, reinforced the isolation strategy between the production network and the oce network, and deployed NSFOCUS probesto continuously monitor the security situation of the internal network and accurately identify potential risks. By centrally managingserver access through bastion hosts and strictly controlling permission allocation, it ensures system access security. Homa Applianceshas established a multi-level security defense system, deploying exit rewalls and data center rewalls to ensure network boundarysecurity.
Information Security System Assurance
TCL Smart Home places great emphasis on security inspections and risk assessments. Homa Appliances regularly conducts informationsecurity patrols, risk assessments, and compliance checks to ensure the effectiveness and compliance of the information securitymanagement system, continuously enhancing the overall network security protection capabilities of the enterprise. At the same time,the Company continuously conducts security vulnerability detection and remediation to reduce potential system security risks, and relieson RPA robots to automatically block abnormal IPs, strengthening external threat defense capabilities and comprehensively ensuringthe stability and security of the information system.
Safety Inspection and Risk Assessment
TCL Smart Home continuously optimizes its network infrastructure and establishes a multi-tiered network architecture to ensure the stableoperation of its information systems. Hefei Home Appliances adopts a dual-line hot standby solution for internet leased lines to guaranteehigh availability of network connectivity. Combined with SD-WAN dual-line hot standby, it optimizes the stability of remote oce work and datatransmission. Meanwhile, all major devices are equipped with a dual-machine hot standby mechanism to avoid the impact of single pointfailures on business operations, ensuring the stability and reliability of system operations. Homa Appliances relies on multi-operator line accessto enhance the stability of external network connectivity and reduce the risks posed by single network failures. The internal backbone networkadopts automatic switching between dual devices and dual lines to ensure network redundancy and rapid recovery capabilities. Furthermore,the Company has established a high-availability architecture combining databases and applications to ensure that core business systemscan operate smoothly even in the event of sudden failures or network uctuations, further enhancing business continuity and data securityguarantees.
Business Stability
Enhancing the security awareness of all employees is crucial for safeguarding enterprise data security and maintaining business stability. TCLSmart Home places great emphasis on information security and employee information security training, actively conducting training sessionsand periodic activities to strengthen employees' awareness of data security. Hefei Home Appliances provides information security training forall employees, further enhancing their data security protection capabilities and ensuring the comprehensive implementation of informationsecurity management requirements. Homa Appliances actively promotes information security training and management optimization,ensuring that security awareness is integrated into daily work and building a solid defense line for enterprise information security.
Information Security Training
On July 18, 2024, Homa Appliances conducted aninformation security training session for all managementtrainees, with a total of 160 participants. The trainingaimed to enhance employees' awareness of informationsecurity, strengthen their data protection capabilities indaily work, and ensure the eective implementation ofinformation security management requirements.
Case: Homa Appliances conducts information security training to strengthen employees' awareness of data security
Data Security and Privacy Protection
Relying on advanced digital technology, TCL Smart Home ensures efficient business operations and data security through computerencryption, data collection, transmission, analysis, and access control. Hefei Home Appliances employs an encryption system to ensurethe encryption of core business data, preventing unauthorized access and leakage. Combined with access management, it achievessecure data circulation and compliant usage. Homa Appliances strictly implements access management to ensure the reasonable use ofdata, and automatically revokes access upon employee departure to eliminate potential security risks. Additionally, the Company adoptsmethods such as PDA, scanning, and SCADA for data collection, ensuring data transmission security through HTTPS encryption.
TCL Smart Home places great emphasis on customer privacy protection and has formulated strict data management policies. TheCompany has established protection mechanisms for various stages of acquiring, monitoring, and distributing customer informationto safeguard customer privacy. Hefei Home Appliances conducts desensitization checks on all user information in the data system,strengthens user information management and protection, and continuously optimizes the privacy control design of the Company'sproducts and application services to ensure autonomous and controllable privacy management.
Data Security
Customer Privacy Protection
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Corporate Governance2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
Outlook for the Future
Looking back to 2024, TCL Smart Home drove product upgrades through technological innovation, achieving adual leap in brand value and user reputation through deep market insight and precise strategic execution. It setan industry benchmark for the smart ecosystem layout and marked a new milestone in development. Lookingahead, TCL Smart Home will capitalize on this momentum, leading the smart future with global strategies andtechnological innovation, promoting green production, continuously deepening technology R&D, providingquality services, and making TCL Smart Home's contribution to the UN Sustainable Development Goals (SDGs).
Keeping pace with the times, we aim to build green competitiveness across the entire value chain. Wewill unswervingly promote green and low-carbon development, integrating it into all aspects of our businessoperations, from product design, production, packaging, warehousing, and logistics. We will innovate greentechnologies, create energy-ecient, durable, and high-performance products, and promote carbon reductionthroughout the entire product lifecycle. TCL Smart Home will also collaborate with upstream and downstreampartners to build a green ecosystem, export low-carbon standards and technological solutions, and empowerthe industry's green upgrade.Creating a beacon to illuminate the way, empowering diverse value co-creation with the warmth oftechnology. TCL Smart Home has always adhered to the path of high-quality development. Facing consumers,we actively build a strict product quality management system across the entire chain, prioritizing productquality and providing customers with reliable products and services. Facing employees, we will continue to playan active role in the enterprise, continuously improving the protection of employees' rights and interests andtalent cultivation system, leading employees to create social value together. Facing society, we will continue topay attention to vulnerable groups, actively participate in public welfare undertakings, and rely on TCL SmartHome's cutting-edge technology to promote social development.Those who act often succeed, building a transparent and ecient engine for sustainable development.We will deeply focus on the comprehensive optimization of ESG governance, establish a normalized and multi-dimensional communication bridge, listen to the voices of all stakeholders, and ensure that every decision andevery step of the Company resonates with the expectations of society. In terms of internal management, we willpromote the construction of a compliant internal control system, establish a comprehensive risk managementframework, enhance our ability to identify and respond to potential risks, and ensure the stable operation of theCompany.In 2025, Hefei Home Appliances will adhere to the core strategic path of "brand-leading value, global eciencyoperation, technology-driven, and vitality-first", and firmly pursue a differentiated development route,achieving breakthroughs through product innovation. Homa Appliances will focus on management eciencyimprovement, digital and intelligent upgrading, and high-end transformation, driving the enterprise to newheights.As time goes by, some are trapped in thorns, while others pursue the sunrise. TCL Smart Home will remain trueto its original aspiration, adhering to the mission of "Becoming a global leader in smart household appliances",presenting a new image of Chinese home appliance manufacturing enterprises, and working together withglobal partners to practice sustainable development.
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Key Performance Table2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
Material TopicIndicatorsUnit2024EconomicPerformance
Total RevenueRMB18,360,802,831.59
EnvironmentalManagementSystem
Total Investment in Environmental Protection10,000RMB362.60Number of penalties incurred by the Companyfor violations of environment-related laws andregulations
Number0Fines incurred by the Company for violations ofenvironment-related laws and regulations
RMB0Number of environment-related lawsuits resultingfrom violations of environment-related regulations
Number0
Addressing ClimateChange
Total Greenhouse Gas Emissions
Tons of carbon dioxide
equivalent
195,377.63Scope 1
Tons of carbon dioxideequivalent
31,904.75Scope 2
Tons of carbon dioxideequivalent
163,472.88Operational Scope (S1+S2) Greenhouse Gas EmissionIntensity
Tons of carbon dioxideequivalent
10.64
EnergyManagement
Total Energy ConsumptionTons of standard coal39,007.80Total Direct Energy ConsumptionTons of standard coal1,682.65Total Indirect Energy ConsumptionTons of standard coal36,056.11Energy Use Intensity
tce / Million OutputValue
2.06
Natural Gasm?719,521.00DieselLiter205,316.60GasolineLiter25,585.14Total Electricity ConsumptionkWh311,883,366.70Purchased ElectricitykWh290,612,060.10Self-generated and consumed photovoltaic powerkWh21,271,306.60Purchased Green ElectricitykWh21,000,000.00
Key Performance Table
Material TopicIndicatorsUnit2024
Water ResourceManagement
Total Water Consumptionm?1,627,278.00Water Use Intensity
m? / Million OutputValue
88.63
Circular Economyand ResourceUtilization
Total Packaging MaterialsTon258,813.36Paper CartonsTon57,451.00Plastic Foam (EPS)Ton19,805.17PlasticsTon0.00Renewable Packaging MaterialsTon0.00ManualsTon0.00
Pollution and WasteManagement
Total Wastewater DischargeTon301,919.00Sulfur Dioxide (SO2) EmissionsTon0.07Nitrogen Oxides (NOx) EmissionsTon0.29Particulate Matter (PM) EmissionsTon0.68VOCTon17.18Total Hazardous Waste GeneratedTon165.91Total Non-hazardous Waste GeneratedTon15,412.02Waste Paper CartonsTon4,270.57Waste PlasticsTon1,102.23Waste Plastic Foam (EPS)Ton327.09Other Non-hazardous Waste (Manuals)Ton3794.84Other Non-hazardous Waste (Scrap Iron)Ton5,917.29E-waste GeneratedTon83.78
EnvironmentalCulture
Number of employee training sessions onenvironmental protection
Sessions15.00Number of employees' participation in environmentprotection training
Attendances11,039Protection ofEmployee Rightsand Interests
Labor contract signing rate%100%Social insurance coverage rate%100%Employee satisfaction rate%100%Number of trade union membersPerson11,335
9192
Key Performance Table2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
Material TopicIndicatorsUnit2024
WorkforceComposition
Number of employee turnovers (annual)Person8,986Number of new hires (annual)Person10,884Total number of employeesPerson14,923By GenderNumber of male employeesPerson10,508Number of female employeesPerson4,415By Age GroupNumber of employees aged under 30Person7,796Number of employees aged 30 to 50Person6,389Number of employees aged above 50Person738By Educational LevelMaster's degree or abovePerson153Bachelor's degreePerson1,656College degree or belowPerson13,114By Employee Category (Rank)Number of senior managementPerson29Senior management - MalePerson27Senior management - FemalePerson2Number of middle managementPerson175Middle management - MalePerson137Middle management - FemalePerson38Number of junior managementPerson293Junior management - MalePerson248Junior management - FemalePerson44Management - Aged under 30Person56Management - Aged 30 to 50Person398Management - Aged above 50Person42Diversity andEqual Opportunity
Number of employees from ethnic minoritiesPerson2,385Number of employees with disabilitiesPerson259
Material TopicIndicatorsUnit2024
Human CapitalDevelopment
Total sessions of employee training (annual)Sessions3,440Investment in employee training (annual)10,000 RMB280Total employee training attendancesAttendances330,231Training attendances - MaleAttendances222,902Training attendances - FemaleAttendances107,329Training attendances - Senior managementAttendances3,408Training attendances - Middle managementAttendances12,750Training attendances - Junior employees / Non-management
Attendances314,073Total employee training hoursHour174,321Training hours - MaleHour123,166Training hours - FemaleHour51,155Training hours - Senior managementHour7,068Training hours - Middle managementHour22,830Training hours - Junior employees / Non-managementHour144,423Total employees receiving regular performance andcareer development reviews
Person2,995Male employees receiving reviewsPerson2,123Female employees receiving reviewsPerson872Senior management receiving reviewsPerson19Middle management receiving reviewsPerson141Junior employees / Non-management receivingreviews
Person2,835
OccupationalHealth and Safety
Expenses for safe production10,000 RMB690.36Number of major safety accidentsNumber0Number of safety inspections / risk assessmentsNumber398Number of work-related deathsPerson0Number of work-related injuriesNumber65Total number of days lost due to work-related injuriesDay1,569Number of employees' occupational diseasesNumber / Cases0Employee physical examination coverage rate%2Number of occupational health and safety trainingsessions conducted
Sessions864Number of persons covered by occupational healthand safety training
Attendances69,266Total hours of occupational health and safety trainingHour383,8969394
Key Performance Table2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
Material TopicIndicatorsUnit2024
Supply ChainManagement
Total number of suppliersNumber758Number of suppliers in Chinese mainlandNumber753Number of suppliers in Hong Kong, Macao, andTaiwan regions
Number2Number of suppliers in other regions (overseas)Number3Supplier integrity agreement signing rate%100%
R&D andInnovation
Annual number of patents grantedNumber373Cumulative number of patents grantedNumber2,167Number of innovative study programs/projectsNumber60Total number of R&D and technical employeesPerson1,074R&D investment10,000 RMB64,266Number of participation in industry standardsdevelopment
Number18
Product Qualityand Safety
Percentage of signicant products and servicecategories assessed for health and safety impacts forimprovement
%0Percentage of sold or shipped products recalled dueto safety and health reasons
%0Number of incidents of non-compliance concerningthe health and safety of products and services
Incidents0Monetary value related to damages from majorliability accidents concerning product/service safetyand quality
10,000 RMB0
Customer Service
Number of customer complaintsNumber179Number of customer service training sessionsSessions74Customer service training attendancesAttendances2,031Party BuildingLeadership
Number of Party membersPerson203Number of new Party membersPerson21Number of party building activitiesActivities43
CommunityDevelopment
Total monetary donations for social welfare10,000 RMB200Number of public welfare activitiesActivities10Number of employee volunteer activitiesActivities34Number of employee volunteers (attendances)Attendances270Volunteer hours contributed by employeesHour303
Material TopicIndicatorsUnit2024
Compliance andRisk Management
Number of signicant nes and non-monetarysanctions for non-compliance with laws andregulations
Number0Monetary value of signicant nes for non-compliancewith laws and regulations
RMB0
Anti-corruptionand BusinessEthics
Number of conrmed incidents of corruptionIncidents0Number of employees disciplined or dismissed due tocorruption
Incidents0Number of contracts with business partnersterminated or not renewed due to corruption
Incidents0Number of anti-corruption training sessionsSessions2Anti-corruption training attendancesAttendances620Number of legal actions pending or completedregarding anti-competitive behavior and violations ofanti-trust and monopoly legislation
Legal Actions0Number of anti-monopoly and fair competitiontraining sessions
Sessions1Anti-monopoly and fair competition trainingattendances
Attendances10
CorporateGovernance
Total number of Directors on the BoardMember7Number of female DirectorsMember3Number of Executive DirectorsMember0Number of Non-executive Directors (NEDs)Member7Number of Independent Non-executive Directors(INEDs)
Member3Number of Board of Directors meetings heldMeetings9Number of Remuneration Committee meetings heldMeetings1Number of Nomination Committee meetings heldMeetings4Number of shareholder meetings heldMeetings6
9596
Key Performance Table2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
IndexSustainability Report Index
ChapterGuidelines
DisclosurelocationChapter I General ProvisionsArticles 1 - 10
About the Report,Materiality Analysis
Chapter II Disclosure of Sustainability FrameworkArticles 11 - 19ESG Management
Chapter IIIDisclosure ofEnvironmentalInformation
Section 1Addressing ClimateChange
Addressing climate changeArticles 20 - 28
Response to ClimateChange
Section 2Pollution Preventionand EcosystemProtection
/Article 29
EnvironmentalManagement SystemPollutant EmissionsArticle 30
Pollution and WasteManagementWaste DisposalArticle 31
Pollution and WasteManagementEcosystem and BiodiversityConservation
Article 32/Environmental compliancemanagement
Article 33
EnvironmentalManagement System,Pollution and WasteManagement
Section 3Resource Utilizationand Circular Economy
/Article 34
Energy and ResourceManagement, GreenIndustry ChainEnergy UtilizationArticle 35
Response to ClimateChangeWater Resource UtilizationArticle 36
EnvironmentalManagement SystemCircular EconomyArticle 37
Pollution and WasteManagement
Chapter IVDisclosureof SocialInformation
Section 1SustainabilityGovernanceMechanism
Corporate GovernanceArticle 51
Responsible SupplyChain, Customer ServiceDue DiligenceArticle 52
Responsible SupplyChainCommunication withStakeholders
Article 53Supplier Management
Section 2Business Conducts
Operation ComplianceArticle 54
Product Quality andSafetyAnti-Commercial Bribery andAnti-Corruption
Article 55
Information Security andPrivacy ProtectionAnti-Unfair CompetitionArticle 56
Protection of Employees'Rights and Interests
ChapterGuidelines
Disclosurelocation
Chapter IVDisclosureof SocialInformation
Section 3Suppliers andCustomers
/Article 44
Energy and ResourceManagement, GreenIndustry ChainSupply Chain RiskManagement
Article 45Social Public WelfareEqual Treatment of Small andMedium-Sized Enterprises
Article 46/Product and Service Safetyand Quality
Article 47Social Public WelfareData Security and CustomerPrivacy Protection
Article 48
Innovative Technologiesand Products, R&D andInnovation StrengthSection 4Employees
/Article 49
Innovative Technologiesand Products, R&D andInnovation StrengthEmployeesArticle 50/
Chapter VDisclosure ofSustainabilityGovernanceInformation
Section 1SustainabilityGovernanceMechanism
Corporate GovernanceArticle 51
Responsible SupplyChain, Customer ServiceDue DiligenceArticle 52
Responsible SupplyChainCommunication withStakeholders
Article 53Supplier Management
Section 2Business Conducts
Operation ComplianceArticle 54
Product Quality andSafetyAnti-Commercial Bribery andAnti-Corruption
Article 55
Information Security andPrivacy ProtectionAnti-Unfair CompetitionArticle 56
Protection of Employees'Rights and InterestsChapter VISupplementary Provisions andInterpretation
IndexArticle 57IndexAssurance StatementArticle 58
GHG EmissionsAssurance
9798
Key Performance Table2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
GRI IndexDisclosureChapter
GRI 1：Foundation2021
GRI 1introduction, key concepts and standardsAbout the Report
GRI 2：General disclosures 20212-1Organizational detailsCompany Prole2-2
Entities included in the organization's sustainabilityreporting
About the Report2-3Reporting period, frequency and contact pointAbout the Report2-4Restatements of informationAbout the Report2-5External assurance\2-6Activities, value chain and other business relationshipsCompany Prole2-7EmployeesDiversity and Equal Opportunities2-8Workers who are not employees\2-9Governance structure and compositionCorporate Governance2-10 Nomination and selection of the highest governance bodyCorporate Governance2-11Chair of the highest governance bodyCorporate Governance2-12
Role of the highest governance body in overseeing themanagement of impacts
ESG Governance2-13Delegation of responsibility for managing impactsESG Governance2-14
Role of the highest governance body in sustainabilityreporting
ESG Governance2-15Conicts of interest\2-16Communication of critical concerns\2-17Collective knowledge of the highest governance body\2-18
Evaluation of the performance of the highest governancebody
\2-19Remuneration policies
Corporate Governance, Protection of Employees'
Rights and Interests2-20Process to determine remunerationCorporate Governance2-21Annual total compensation ratio\2-22Statement on sustainable development strategyMessage from the Board of Directors
DisclosureChapter
2-23Policy commitmentsESG Governance2-24Embedding policy commitmentsESG Governance2-25Processes to remediate negative impacts
Environmental Management System, EmployeeCommunication2-26Mechanisms for seeking advice and raising concernsAnti-corruption, Employee Communication2-27Compliance with laws and regulationsCompliant Operation2-28Membership associationsLeading Industry Development2-29Approach to stakeholder engagementStakeholder Communication2-30Collective bargaining agreementsProtection of Employees' Rights and InterestsGRI 3：Material Topics3-1Process to determine material topicsMateriality Analysis3-2List of material topicsMateriality Analysis3-3Management of material topicsMateriality AnalysisGRI 201：Economic Performance201-1 Direct economic value generated and distributed
Protection of Employees' Rights and Interests,Social Public Welfare201-2
Financial implications and other risks and opportunitiesdue to climate change
Response to Climate Change201-3
Dened benet plan obligations and other retirementplans
Protection of Employees' Rights and Interests201-4Financial assistance received from government\
GRI 202：Market Presence202-1
Ratios of standard entry level wage by gender comparedto local minimum wage
\202-2
Proportion of senior management hired from the localcommunity
\GRI 203：Indirect Economic Impacts203-1Infrastructure investments and services supportedSocial Public Welfare203-2Signicant indirect economic impactsGreen Industry Chain, Responsible Supply Chain
GRI 204：Procurement Practices204-1Proportion of spending on local suppliersSupply Chain Management99100
Key Performance Table2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
DisclosureChapter
GRI 205：Anti-corruption205-1Operations assessed for risks related to corruptionAnti-corruption205-2
Communication and training about anti-corruption policiesand procedures
Anti-corruption205-3Conrmed incidents of corruption and actions takenAnti-corruptionGRI 206： Anti-competitive Behavior
206-1
Legal actions for anti-competitive behavior, anti-trust, andmonopoly practices
Anti-unfair CompetitionGRI 207：Tax207-1Approach to tax\207-2Tax governance, control, and risk management\207-3
Stakeholder engagement and management of concernsrelated to tax
\207-4Country-by-country reporting\
GRI 301：Materials
301-1Materials used by weight or volumePollution and Waste Management301-2Recycled input materials usedGreen Industry Chain301-3Reclaimed products and their packaging materialsGreen Industry Chain
GRI 302：Energy
302-1Energy consumption within the organizationEnergy and Resource Management302-2Energy consumption outside of the organization\302-3Energy intensityEnergy and Resource Management302-4Reduction of energy consumptionEnergy and Resource Management302-5
Reductions in energy requirements of products andservices
Green Industry Chain
GRI 303：Water and Euents
303-1Interactions with water as a shared resourceEnergy and Resource Management303-2Management of water discharge-related impacts\303-3Water withdrawalEnergy and Resource Management303-4Water dischargePollution and Waste Management303-5Water consumptionEnergy and Resource Management
DisclosureChapter
GRI 304 Biodiversity304-1
Operational sites owned, leased, managed in, or adjacentto protected areas and areas of high biodiversity valueoutside protected areas
\304-2
Signicant impacts of activities, products and services onbiodiversity
\304-3Habitats protected or restored\304-4
IUCN Red List species and national conservation list specieswith habitats in areas aected by operations
\GRI 305：Emissions305-1Direct (Scope 1) GHG emissionsIndicators and Targets305-2Energy indirect (Scope 2) GHG emissionsIndicators and Targets305-3Other indirect (Scope 3) GHG emissions\305-4GHG emissions intensityIndicators and Targets305-5Reduction of GHG emissions\305-6Emissions of ozone-depleting substances (ODS)\305-7
Nitrogen oxides (NOx), sulfur oxides (SOx), and othersignicantair emissions
Pollution and Waste ManagementGRI 306：Waste 2020306-1Waste generation and signicant waste-related impactsPollution and Waste Management306-2Management of signicant waste-related impactsPollution and Waste Management306-3Waste generatedPollution and Waste Management306-4Waste diverted from disposalPollution and Waste Management306-5Waste directed to disposalPollution and Waste ManagementGRI 308：Supplier Environmental Assessment
308-1
New suppliers that were screened using environmentalcriteria
Supplier Management308-2
Negative environmental impacts in the supply chain andactions taken
Supplier ManagementGRI 401：Employment401-1New employee hires and employee turnoverKey Performance Indicators401-2
Benets provided to full-time employees that are notprovided to temporary or part-time employees
Care for Employees401-3Parental leaveCare for Employees101102
Key Performance Table2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report
DisclosureChapter
GRI 402 Labor/Management Relations402-1Minimum notice periods regarding operational changes\GRI 403：Occupational Health and Safety
403-1Occupational health and safety management systemSafety Management System403-2
Hazard identication, risk assessment, and incidentinvestigation
Safe Production, Safety Management System403-3Occupational health servicesOccupational Health Management403-4
Worker participation, consultation, and communication onoccupational health and safety
Safety Management System403-5Worker training on occupational health and safetySafety Management System403-6Promotion of worker healthOccupational Health Management403-7
Prevention and mitigation of occupational health andsafety impacts directly linked by business relationships
Supplier Management403-8
Workers covered by an occupational health and safetymanagement system
Safety Management System403-9Work-related injuriesKey Performance Indicators403-10Work-related ill healthOccupational Health ManagementGRI 404： Training and Education404-1Average hours of training per year per employeeSafety Management System404-2
Programs for upgrading employee skills and transitionassistance programs
Safe Production, Safety Management System404-3
Percentage of employees receiving regular performanceand career development reviews
Occupational Health ManagementGRI 405：Diversity and Equal Opportunity405-1Diversity of governance bodies and employees
Corporate Governance, Diversity and Equal
Opportunities405-2Ratio of basic salary and remuneration of women to menDiversity and Equal OpportunitiesGRI 406：Non-discrimination406-1
Incidents of discrimination andcorrective actions taken
Diversity and Equal OpportunitiesGRI 407：Freedom of Association and Collective Bargaining407-1
Operations and suppliers in which the right to freedom ofassociation and collective bargaining may be at risk
/GRI 408：Child Labor408-1
Operations and suppliers at signicant risk for incidents ofchild labor
Protection of Employees' Rights and Interests
DisclosureChapter
GRI 409：Forced or Compulsory Labor409-1
Operations and suppliers at signicant risk for incidents offorced or compulsory labor
Protection of Employees' Rights and InterestsGRI 410：Security Practices410-1
Security personnel trained in human rights policies orprocedures
\GRI 411：Rights of Indigenous Peoples411-1
Incidents of violations involving rights of indigenouspeoples
\GRI 413：Local Communities413-1
Operations with local community engagement, impactassessments, and development programs
Social Public Welfare413-2
Operations with signicant actual and potential negativeimpacts on local communities
\GRI 414：Supplier Social Assessment414-1New suppliers that were screened using social criteriaSupplier Management414-2
Negative social impacts in the supply chain and actionstaken
Supplier ManagementGRI 415:Public Policy415-1Political contributions\GRI 416：Customer Health and Safety416-1
Assessment of the health and safety impacts of productand service categories
Guarantee of Product Safety416-2
Incidents of non-compliance concerning the health andsafety impacts of products and services
Guarantee of Product SafetyGRI 417：Marketing and Labeling417-1
Requirements for product and service information andlabeling
\417-2
Incidents of non-compliance concerning product andservice information and labeling
\417-3
Incidents of non-compliance concerning marketingcommunications
\GRI 418：Customer Privacy418-1
Substantiated complaints concerning breaches ofcustomer privacy and losses of customer data
Protecting Customer Privacy, Data Security and
Privacy Protection
103104
Key Performance Table2024 Guangdong TCL Smart Home Appliances Co., Ltd.Environmental, Social and Governance Report