CONTENTS
About This ReportMessage from the ChairmanAbout Megmeet
Corporate GovernanceG1 Due DiligenceG2 Stakeholder CommunicationG3 Double Materiality AssessmentG4 ESG GovernanceG5 Board ManagementG6 Anti-Corruption and Anti-BriberyG7 Anti-Unfair Competition
ESG Key Performance IndicatorsReporting Standards Index
Green and Low-CarbonE1 Climate Change ResponseE2 Energy UseE3 Water UseE4 Environmental ComplianceE5 EmissionsE6 Waste ManagementE7 Circular EconomyE8 Ecosystem and Biodiversity Protection
Trust and Shared SuccessS1 Innovation DrivenS2 Product Quality and SafetyS3 Customer Service ManagementS4 Data and Information SecurityS5 Supply Chain SecurityS6 Industry Cooperation and Development
Harmonious Humanity
S7 Employment PracticesS8 Occupational Health and SafetyS9 Career DevelopmentS10 Employee CareS11 Social Contribution
This report marks the ?fth time Shenzhen Megmeet Electric Co., Ltd. has disclosed social respon-sibility information and is the fourth Environmental, Social, and Governance (ESG) Reportpublished by the company. It systematically presents the company’s ESG practices and perfor-mance, aiming to provide investors and stakeholders with a clear, intuitive, and transparentunderstanding of Megmeet’s ESG status.
Deepening core competencies to drive multi-pillar growthAs a company rooted in power electronics and related control technologies, Megmeet focuses onpower conversion, automation control, and their applications. Dedicated to becoming a world-classsolution provider in the ?elds of electrical control and energy e?ciency, Megmeet has grown into awell-known domestic supplier across multiple sectors, including smart home appliance controlproducts, power supplies, new energy and rail transit components, industrial automation, intelligentequipment, and precision interconnection. Its products are widely used in a range of consumer andindustrial ?elds such as home and commercial displays, variable-frequency appliances, smartbathrooms, medical equipment, telecommunications, data centers, renewable energy applications,new energy vehicles, rail transit, industrial automation, intelligent manufacturing equipment, andprecision connectors. The company continues to expand its reach in the electrical automationdomain, extending its technological scope, diversifying its product portfolio, and steadily penetrat-ing new markets. Over the past year, Megmeet has emphasized multi-pillar growth and balancedrisk management, aiming to harmonize the scale and development trends across its businesssegments to mitigate risks arising from cyclical ?uctuations or operational changes in any singleproduct line. Always centered around user needs, the company evolves from circuit boards tomodules, from systems to integrated solutions—leveraging technological expansion and break-through innovation to tap into emerging markets and deliver higher-quality, more environmentally friendly solutions to customers world-wide.Driven by innovation, empowering green transformationAmid the wave of the global energy revolution, Megmeet fully recognizes that technological breakthroughs are the core driving forcein addressing climate challenges. We continuously invest 11% of our revenue into research and development, building cross-disci-plinary core technology platforms to drive product upgrades toward low-carbon and intelligent solutions. By strengthening supplychain integration and clean production management, the company has achieved end-to-end environmental optimization, reducingresource consumption and pollutant emissions at the source. At the same time, we are deeply involved in the construction of the newenergy industry chain, providing key component support for clients in power electronics, energy storage systems, and new energytransportation—helping our industry partners push technological boundaries and accelerate the path to carbon neutrality.Practicing Responsibility Commitments, Building a Sustainable Ecosystem TogetherWe always consider sustainable development as part of our corporate DNA. Megmeet further integrates ESG concepts into the entireoperation chain: internally, by implementing various energy-saving measures to improve energy e?ciency and promoting theconstruction of zero-carbon factories; externally, by collaborating with supply chain partners to build a green ecosystem and usingdigital tools to optimize carbon footprint tracking and management. In the ?eld of social responsibility, we focus on communityco-construction, injecting lasting power into social development through long-term mechanisms such as employment support,educational empowerment, and industry collaboration. In addition, the company continues to enhance its talent strategy, attractinginternational professionals, strengthening employee training and career development systems, and creating an inclusive and innova-tive organizational culture.Embracing Change with Resilience: Moving Towards the FutureLooking ahead to 2025, the global energy transition will enter a new stage—shifting from rapid expansion to quality improvement.Megmeet will remain committed to two core missions: ?rst, driving industrial upgrading through technological innovation by exploringthe frontiers of power electronics to provide more e?cient and lower-carbon solutions for sectors such as new energy and intelligentmanufacturing; second, building a resilient ecosystem through open collaboration, working with upstream and downstream partnersto tackle supply chain challenges and explore circular economy and net-zero business models. We ?rmly believe that only by aligningour development with the vision of a shared future for humanity can we achieve steady and long-term progress amid transformation.“The road ahead may be long and challenging, but with action, we will reach our destination.” In the face of both the climate crisisand industrial transformation, Megmeet is committed to walking hand in hand with global partners—leveraging the power of technol-ogy to safeguard our planet, and upholding a sense of responsibility to deliver on the promise of sustainable development. Together,we strive toward a future where humanity and nature coexist in harmony.
About This ReportMessage from the Chairman
This is an annual report covering the period from January 1, 2024, to December 31, 2024. To enhance thehistorical comparability of the report, any textual information that exceeds this scope will be explained in therelevant sections.Reporting Period
The ?nancial data presented in this report is derived from the Company's audited ?nancial statements. Otherdata is sourced from the Group’s internal documents and aggregated statistical information. Unless otherwisespeci?ed, all monetary ?gures mentioned in this report are denominated in RMB.Data Description
0102
This report has been prepared with reference to the following standards and guidelines:
?Guideline No. 17 on Self-Regulatory Supervision of Listed Companies — Sustainable Development Report
(April 2024 Revision), issued by the Shenzhen Stock Exchange?Guideline No. 3 on Self-Regulatory Supervision of Listed Companies — the Preparation of SustainableDevelopment Reports, issued by the Shenzhen Stock Exchange?Sustainability Reporting Standards (2021 edition) by the Global Reporting Initiative (GRI Standards)?Guidelines for Chinese Corporate Sustainability Reporting (CASS-ESG 6.0) — General Framework, issued by
the Chinese Academy of Social Sciences?United Nations Sustainable Development Goals (SDGs)
Reporting Basis
This report covers ?Shenzhen Megmeet Electrical Co., Ltd.? and its subsidiaries (“Megmeet” or “the Compa-ny”). Unless otherwise stated, the reporting scope aligns with the consolidated ?nancial statements disclosedin Megmeet’s annual report (stock code: 002851.SZ). Details of subsidiaries within the report scope are provid-ed in the Appendix "List of Subsidiaries within the Report Scope".
Scope of the Report
For ease of reading, " Shenzhen Megmeet Electric Co., Ltd." is referred to as “Megmeet,” “the Company,” or“we.”
References in the Report
Dr. Tong Yongsheng
April 2025
Megmeet 2024 ESG Report
Manufacturing Bases
R&D Centers
7600+Number of Employees
2800+
Number of R&D Personnel
Total Valid Patents and Copyrights(including 400+ new ?lings in 2024)
1990+
As a global specialist in providing solutions for the electrical automation sector, Megmeet is committed to enabling moree?cient use of electric energy, fostering a cleaner living environment, continuously improving production e?ciency, andenhancing the quality of life. The company actively implements energy transition strategies and supports the realization ofcarbon peaking and carbon neutrality goals, aspiring to become a world-class provider of products and solutions in the ?eldof electrical automation.
Industry Leadership and Demonstration
To become a leading provider of electrical automationproducts and solutions.
Corporate Vision
To use electric energy e?ciently and provide a comfort-able living environment for humanity.Corporate Mission
Harmonious HumanityMegmeet 2024 ESG ReportTrust and Shared SuccessAbout MegmeetCorporate GovernanceGreen and Low-Carbon
Founded in 2003, ?Shenzhen Megmeet Electrical Co., Ltd.? (Stock Code: 002851.SZ) is a one-stop solution providerspecializing in the research and development, manufacturing, sales, and service of hardware and software in the ?eld ofelectrical automation. Over the past two decades, Megmeet has built a robust technology platform centered around digitalpower control, system control and communication, and power conversion hardware. This platform has given rise to six majorbusiness segments: intelligent home appliance control systems, power products, new energy and rail transit components,industrial automation, intelligent equipment, and precision connectivity. The company has established research and develop-ment centers, manufacturing centers and market service centers across the globe.
About Megmeet
0304
Corporate Philosophy
Focus on core technologies and deliver the best compo-nents and solutions to customers.
Corporate Culture
Leadership, openness, collaboration, and innovation.?Maintain strong and sustained investment in theresearch and development to continuously optimizeplatform development.?Expand business horizontally while strengtheningvertical specialization in segmented products.?Proactively deploy in future-oriented industries to drivediversi?ed growth and balance risk.
Corporate Development Strategy
Comply with laws and regulations, treat employees well,
conserve resources, and protect the environment.
Corporate Responsibility
As an industry leader, Megmeethas advanced the adoption ofgreen supply chains and greendesign, enhancing the sustainabilitylevel across the entire industry.As a "National Green Supply ChainManagement Enterprise," thecompany promotes the low-carbontransformation of the entireindustry chain through measureslike green procurement andsupplier management.
The company has been awardedhonors such as "National GreenFactory" and " Industrial ProductGreen Design DemonstrationEnterprise," setting a benchmarkfor the industry’s green andlow-carbon transformation.
Megmeet focuses on core technologies in power electronics and related control systems, continuously expanding intocross-disciplinary and emerging ?elds associated with its core technologies. Starting from the television power supplysector, the company has steadily broadened its scope to include consumer power controllers, industrial power supplies,industrial control products, consumer-end devices, and industrial equipment. Over time, Megmeet has upgraded fromboard-level products to module products, system products, and integrated products, while continually extending its presencein the electrical automation ?eld, expanding the range of technologies and product categories, and penetrating and expand-ing into new domains.The expansion of Megmeet's product portfolio has driven the company’s growth from the home television market into a widerange of consumer and industrial sectors, including commercial displays, variable frequency home appliances, smart sanitaryware, medical equipment, telecommunications, intelligent equipment, new energy vehicles, rail transit, industrial microwaveapplications, intelligent oil extraction equipment, thermal management, and motor-related control systems. This continuousdiversi?cation has created a ?ssion e?ect, uncovering new market demands and enabling entry into more specializedsegments.Through over 20 years of practical experience, Megmeet has developed a unique business model, product philosophy, andmarket expansion approach. The company expands its technologies and product o?erings through both organic growth andexternal initiatives, targeting high-end sectors and future industry trends. With forward-looking planning, strategic patience,and systematic investment, Megmeet builds its technological reserves and competitive advantages, gradually unlockingpotential to support sustained business growth in the future.
Corporate Development History
As of the end of 2024, Megmeet had received a total of 164 honors and certi?cations, including 19 at the national level, 87at the provincial and ministerial level, and 44 at the municipal level. These accolades include the National ManufacturingSingle Champion (for commercial display power products), National Green Factory, Green Design Demonstration Enterprisefor Industrial Products, National Green Supply Chain, Pilot Enterprise for the Digital Transformation of SMEs, and NationalHigh-Tech Enterprise, among others.
Highly Acclaimed and Frequently Awarded
Provincial Level (items)
National Level (items)
Municipal Level (items)
Ranked 7th Globally in Power Supply Sales Volume in 2023
— Source: MTC Report
Number of Honors and
Quali?cations（As of the end of 2024）
0506
Megmeet was founded,focusing on the ?at paneldisplay power supplysector, ushering in a newera for industrial displays.
2003
Entered the ?elds ofindustrial automation andindustrial power supplies.
2007
Started the developmentof core components fornew energy vehicles.
2011
Established a globalmanufacturingbase inZhuzhou, Hunan,empower-ing customers worldwide-and expanded into thesmart homeappliance andindustrial intelligentweldingmachine sectors
2014
Listed on the Shen-zhenSME Board (StockCode.002851)
2017
The internationalizationprocesshas been furtheradvanced, withresearchinstitutes and produc-tionbases establishedbothdomestically andinternationally2019
Listed in Forbes Asia'sTop 200Small andMid-sized ListedCom-panies
2020
Integrated to formsixbusiness segments,focusingon the precisionconnectionbusiness
2022
The acceleration ofglobalizationand qualityimprovement, withtheopening of theChangsha SmartIndustryCenter and thecom-mencement of construc-tion atthe new produc-tion base in Thailand
2023
Harmonious HumanityTrust and Shared SuccessAbout MegmeetCorporate GovernanceGreen and Low-CarbonMegmeet 2024 ESG Report
Megmeet has established a robust platform for research anddevelopment, manufacturing, marketing, and services. Globally,the company operates 50 branches, 24 market service centers,and has over 500 partners.
Global Layout and Expansion
By 2028, we expect to expand our total land area to 1,000 mu(approximately 666,700 square meters), with a total buildingarea of 900,000 square meters. The number of productionlines is projected to increase to 390, and the annual PCBAproduction capacity is expected to reach 284 million pieces.
634mu (approximately422,000 square meters)Total Area
580,000 square
meters
Constructed Area
184lines
Various Production
90million PCSAnnual Production Capacity of PCBA2023
0708
Zhuzhou Global Manufacturing BaseZhuzhou Phase IIHeyuanYiwu
Hangzhou (under construction)TaizhouThailand (under construction)India
Harmonious HumanityTrust and Shared SuccessAbout MegmeetCorporate GovernanceGreen and Low-CarbonMegmeet 2024 ESG Report
Production BaseR&D centerSales & Services
The Five-year Plan1000mu (approximately422,000 square meters)Total Area
900,000 squaremeters
Constructed Area
390lines
Various Production
284million PCS
Annual Production Capacity of PCBA
New Energy SolutionsIntelligent Equipment
Main Businesses
Digital Power
Control
System Control& Communication
PowerConversion
Power Solutions
IndustrialAutomation
Precision Connection
Smart HomeControl Solutions
Core Businesses and Key Technologies
Harmonious HumanityTrust and Shared SuccessAbout MegmeetCorporate GovernanceGreen and Low-CarbonMegmeet 2024 ESG Report
Megmeet’s products are widely applied across a broad range of consumer and industrial sectors, including household andcommercial displays, variable frequency home appliances, smart bathrooms, medical equipment, communications, datacenters, renewable energy applications, new energy vehicles, rail transit, industrial automation, intelligent manufacturingequipment, and precision connectivity components. The company continues to extend its reach in the ?eld of electricalautomation, expanding its technological scope, diversifying its product portfolio, and steadily penetrating and exploring newareas.Through years of investment in research and development, the company has successfully built several technologicalplatforms, including a power conversion hardware platform, a digital power control technology platform, and automationcontrol and communication software. Megmeet continues to expand toward integrated mechatronics and thermal manage-ment systems. By leveraging the cross-application of these platforms, the company has achieved a diversi?ed product layoutacross various sectors, established a cross-industry business operation model, and continuously enriched the technologicalfoundation that supports the rapid expansion of new products.
According to application areas, the company’s products are mainly divided into six categories: intelligent home appliancecontrol products, power supply products, new energy transportation, industrial automation, intelligent equipment, and preci-sion connectivity. Among them, the main sub-products of intelligent home appliance control products include various variablefrequency home appliance power controllers, air source heat pump controllers, smart bathroom systems and components,etc.; the main sub-products of power supply products include medical device power supplies, communication power supplies,server power supplies, industrial power supplies, solar-storage-charging solutions, display power supplies, and OA powersupplies, etc.; the main sub-products of new energy transportation components include power electronic integration modules(PEU) for new energy vehicles, motor controllers (MCU), on-board chargers (OBC), DC-DC modules, on-board compressors,rail transit vehicle air conditioning electrical components, light electric vehicles, core components of thermal managementsystems, etc.; the main sub-products of industrial automation include servo and variable frequency drives, programmablelogic controllers (PLC), fully active hydraulic suspension systems, linear motors, encoders, etc.; the main sub-products ofintelligent equipment include digital welding machines, industrial microwave equipment, intelligent oil extraction equipment,etc.; the main sub-products of precision connectivity include shaped electromagnetic wires, coaxial cables, ultra-?ne ?atwires, FFC, FPC, etc.0910
Variable Frequency Drive
Servo SystemControl SystemEncoderLinear MotorsInternal Gear Pump
IoT SolutionElevator Controller
......
Telecom Power
Server PowerElectric PowerMedical PowerDisplay Power
LED PowerLaser PowerBi-directional Inverters for
Portable PowerSolar & BESS & EV Charging
SolutionOA Power
Flat Panel Power
......
Multiplexed EV ChargingSystem (OBC & DC-DC)Motor Control UnitPower Electronic Unit ?
(2-in-1, 3-in-1)E-Compressorintelligent Active Hydraulic
Suspension (i-AHS)
TV EDUConstruction Machinery
ControllerThermal Mgmt. SystemLight Electric Vehicle Controller
Railway A/C Controller
Railway VFD
......
Power SolutionsIndustrial Automation
eMobility &EV Infrastructure
Residential A/C ControllerCommercial A/C Controller
Heat Pump ControllerVehicle A/C ControllerSolar A/C ControllerMini Compressor ControllerRefrigerator ControllerWasher/Dryer Controller
Residential Microwave
Industrial Microwave
Smart BidetRF Thawing System
......
FFCFPCCoaxial CableCCSLitz WirePeek Wire......
Intelligent Equipment
Home ApplianceControl Solutions
Precision Connection
Intelligent WeldingIndustrial MicrowaveElectric Submersible-Progressing Cavity PumpPolysilicon Water Quenching
EquipmentAutomatic Car Washing?
Machine
......
Harmonious HumanityTrust and Shared SuccessAbout MegmeetCorporate GovernanceGreen and Low-CarbonMegmeet 2024 ESG Report
1112
Corporate GovernanceMegmeet has always regarded governance capability as the core engine for sustain-able development, establishing a governance system that is highly compatible withthe transformation of the electrical industry, based on the principles of "scienti?cdecision-making, transparent operations, and controllable risks." By optimizing theboard structure, deepening the application of digital governance tools, and strength-ening a culture of integrity and compliance mechanisms, the company has achievedcomprehensive improvements in decision-making e?ciency, risk management, andstakeholder trust. In the future, the company will focus on innovations in intelligentgovernance technology, continuously providing a reliable governance model for globalenergy transition and high-quality development of the industrial chain.G1 Due DiligenceG2 Stakeholder CommunicationG3 Double Materiality AssessmentG4 ESG GovernanceG5 Board ManagementG6 Anti-Corruption and Anti-BriberyG7 Anti-Unfair Competition
G1G2Due DiligenceMegmeet actively practices responsible business conduct and green development by implementing sustainable due diligenceacross the entire supply chain. The company identi?es and assesses potential environmental, social, and governance (ESG)risks in both upstream and downstream chains, intervening in advance to prevent issues and promote sustainable develop-ment throughout the company’s entire supply chain.The company, in collaboration with the Sustainability Development Committee and external professional organizations(third-party certi?cation bodies), conducts comprehensive identi?cation and assessment of sustainability-related risks.
Megmeet’s due diligence scope covers enterprises throughout the supply chain, encompassing key business areas such asnew energy and rail transportation, as well as industrial automation. It spans raw material procurement, manufacturing, andlogistics, with a particular focus on suppliers’ environmental compliance (e.g., carbon emissions and resource consumption)and protection of labor rights. In the ?eld of product R&D and technological innovation, the due diligence scope primarilytargets emerging technologies such as server power supplies and thermal management products, evaluating their full lifecycle environmental impacts (e.g., energy e?ciency and electronic waste disposal). In terms of overseas operations, we aligndue diligence e?orts with the Company’s global expansion strategy, analyzing and assessing environmental regulatory risksand community relations based on the operational status of overseas R&D centers and manufacturing bases.
For areas identi?ed as high-risk in environmental and social aspects, we implement the following measures to intervenepromptly and mitigate risksWe sign sustainability agreements with suppliers,requiring a gradual reduction in carbon emissionintensity starting from 2025. Suppliers that violate thered lines outlined in the Sustainable Business ConductCode (Megmeet’s Sustainability Code of Conduct) willbe subject to an access ban mechanism.
Greening the Supply ChainOverseas Compliance Management
At production bases in Thailand, India, and otherlocations, we have established environmental manage-ment systems and adopted localized operations toreduce cultural con?icts and community risks.
We summarize ?ndings through stakeholder communication and rely on third-party audit content, using a risk assessmentmatrix approach to comprehensively analyze risks throughout the entire value chain during company operations
Stakeholder Communication
Megmeet fully understands that sustainable development relies on close cooperation and communication with all stakehold-ers. To uphold the concept of sustainability, the company places great importance on engaging and interacting with stake-holders, always adhering to an open and transparent approach. Megmeet actively listens to the concerns of various partiesand integrates these insights into its strategy and daily operations to jointly advance the achievement of sustainability goals.The company has established and implemented a stakeholder communication system to ensure smooth and e?ectiveengagement.The main topics, methods, and channels of our communication with various stakeholders are shown in the table below:
Stakeholders
CompanyShareholders andPotential Investors
EmployeeRepresentativesContacts from
CustomerProcurement,Quality Control, andEnergy & Low-Car-
bon Departments
orporate Governance, ComplianceOperations, Economic Performance,Anti-Corruption, R&D Innovation,Safe Production, Industry Coopera-tion and DevelopmentEmployee Rights and Bene?ts,Occupational Health and Safety,Product Quality and Safety, TalentDevelopment and Training,Diversity and Equal Opportunities,Information Security and PrivacyProtectionProduct Quality and Safety,Responsible Supply Chain,Circular Economy, ResponsibleMineral Sourcing Management,Product Carbon Footprint, CleanTechnology Opportunities
Investors
Employees
Customers
Government and
RegulatoryAuthoritiesSuppliers
Partners
Communities,Public, and Media
Government of thecompany'soperating locations,Shenzhen StockExchangeSuppliers of CoreRaw Materialssuch as CathodeMaterials, AnodeMaterials, etc.Industry Associa-tions, Chambers ofCommerce, andPartneredUniversities in theCompany'sOperating LocationsNon-GovernmentalOrganizations,CharitableInstitutions, SocialOrganizations,Mainstream Media
R&D Innovation, Product Qualityand Safety, Economic Perfor-mance, Public Welfare andVolunteer Services, CommunityCommunication and Development
Industry Cooperation and Develop-ment, R&D Innovation, ProductQuality and Safety, EconomicPerformance, Emissions and WasteManagement
R&D Innovation, Supply ChainSecurity, Information Security andPrivacy Protection, Product Qualityand Safety, Safe Production,Occupational Health and Safety
Compliance Operations, FairCompetition, Anti-Corruption,Product Carbon Footprint,Environmental Management System
?Company Website, O?cial WeChat Account for
Information Disclosure?Customer Satisfaction Surveys?Green Products and Services Throughout the Entire
Lifecycle?Customer Inquiries and Complaints?Customer Audits?Technical Seminars
StakeholderRepresentatives
Key Topics
Communication Methods
and Channels
?Shareholders' Meeting?Financial Reports, ESG Reports, Performance
Reports?Company Website, O?cial WeChat?Roadshows, Research, Phone Calls, Emails,
Shenzhen Stock Exchange "Interactive Easy"
Platform, and Other Methods?Employee Activities?Employee Training?Employee Evaluation and Promotion?Employee Handbook?Internal Communication Platform?Occupational Health Monitoring?Safety Emergency Drills
?Information Disclosure?O?cial Correspondence?Policy Implementation?Institutional Inspections?Participation in Government Research Activities?Phone Communication?Supply Chain Audits?Supplier Coaching and Improvement?Irregular Visits?Technical Seminars?Exchange Visits?Activities of Relevant Associations and Chambers
of Commerce?Strategic Cooperation Projects?Industry Exhibitions?Industry Training?Exchange Visits?Press Releases, Social Media?Energy Saving, Emission Reduction, and
Pollution Control?Community Development Projects?Community Volunteer Activities?Charitable Donations
1314
Due Diligence Responsible Institutions and Personnel
Due Diligence Scope
Risk Identi?cation Method
Risk Mitigation Measures
By combining quantitative and qualitative analysis, we identify high-priority risks such asclimate change, resource shortages, and labor disputes.
Risk Assessment
Matrix
We engage international certi?cation bodies to conduct ESG (Environmental, Social, andGovernance) audits on supply chain enterprises to ensure compliance with internationalstandards (e.g., ISO 9001 Quality, ISO 14001 Environmental, ISO 45001 Occupational Healthand Safety, IATF 16949 Automotive, ISO 13849 Functional Safety, etc.).
Third-Party
Audits
We gather sustainability-related needs and improvement suggestions through investorresearch, employee surveys, and community interviews.
StakeholderCommunication
Harmonious HumanityTrust and Shared SuccessAbout MegmeetCorporate GovernanceGreen and Low-CarbonMegmeet 2024 ESG Report
Since its listing, Megmeet has placed great emphasis on investor relations management. The company uses its SecuritiesDepartment as a point of contact and actively engages with investors through various channels, including shareholdermeetings, on-site investor research, investor hotlines, online performance brie?ngs, and the "Interactive Easy" platform.This interaction helps enhance investors' understanding of the company, strengthen their con?dence, and ensure thatthese communication channels and platforms are maintained by dedicated personnel for timely and e?ective communica-tion. The company continually improves its information disclosure and investor relations management, constantly perfectsits investor protection mechanisms, and promotes positive interaction with investors through initiatives such as consistentdividends, e?cient and transparent information disclosure, and close communication with investors. These e?orts aim tosafeguard the legitimate rights and interests of investors, particularly small and medium-sized investors, and createtangible value returns for them.
Megmeet, in alignment with the characteristics of its industry and business operations, identi?es topics that may havesigni?cant impacts on its business model, operations, development strategy, ?nancial status, operating results, cash ?ow,?nancing methods, and ?nancing costs in the short, medium, and long term. Additionally, the company evaluates whetherits performance on these topics may have signi?cant e?ects on the economy, society, and the environment.The Megmeet ESG Management System Development Committee maintains a comprehensive understanding of thecompany’s activities and business relationships, is well-versed in relevant laws, regulations, and supervisory policies, andanalyzes industry standards as well as media sentiment to map the distribution of stakeholders. Based on the industrycharacteristics, development stage, business model, and value chain position of the company, the Committee identi?estopics with ?nancial or impact materiality and continuously improves the list of material topics.The Committee evaluates the identi?ed topics for materiality and invites stakeholder experts to participate in the process.The impact materiality of a topic is assessed primarily based on four dimensions: scale, scope, irremediability, andlikelihood. Financial materiality is evaluated based on two main aspects: the likelihood of occurrence and the magnitude of?nancial impact. The Committee sets reasonable thresholds for both impact and ?nancial materiality and ultimatelyintegrates the results to form a comprehensive materiality assessment.
1516
Investor Relations
The company has established an “Investor Relations” section on its o?cial website, where it publishes company announce-ments, routine investor reception schedules, and other related information for investors to access. Additionally, the companyactively responds to investor inquiries on the Shenzhen Stock Exchange’s “Interactive Easy” platform.The company enhances investor understanding of Megmeet and strengthens interaction through activities such as hostingperformance brie?ngs and participating in events like the “Online Collective Reception Day for Listed Company Investors.”During these events, the company's management communicates with investors in real-time on key topics of concern, includ-ing company performance, corporate governance, development strategy, operational status, ?nancing plans, equity incen-tives, and sustainable development.Megmeet strictly complies with the requirements set forth in the Articles of Association, Rules of Procedure for Shareholders’Meetings, and other relevant regulations to standardize the convening and holding of shareholders’ meetings. The companyensures that all shareholders, especially minority shareholders, enjoy equal status and fully safeguards their rights to beinformed, to participate, and to vote on major company matters.
Megmeet’s Basic Principles of Investor Relations Management
Megmeet conducts investor relations management based on ful?lling its information disclosure obliga-tions in accordance with the law. It complies with all applicable laws, regulations, rules, normativedocuments, industry standards, self-regulatory rules, internal company policies, as well as widelyaccepted ethical norms and codes of conduct in the industry.
Compliance Principle
Equality Principle
In the conduct of investor relations management activities, Megmeet treats all investors equally,creating opportunities and providing convenience for minority investors to participate.Proactivity Principle
The company takes a proactive approach to investor relations management, actively listening to investoropinions and suggestions, and responding promptly to investor concerns.Integrity and Trustworthiness Principle
Megmeet values honesty, adheres to ethical boundaries, operates in a standardized manner, assumes itsresponsibilities, and strives to foster a sound and healthy market environment.
Double Materiality AnalysisG3
Harmonious HumanityTrust and Shared SuccessAbout MegmeetCorporate GovernanceGreen and Low-CarbonMegmeet 2024 ESG Report
A screenshot of the Investor Relations page on Megmeet's o?cial website
According to the results of the Company’s 2024 double materiality analysis, “Product and Service Safety and Quality,”“Climate Change Response,” “Innovation-Driven Development,” “Energy Use,” “Pollutant Emissions,” “Waste Manage-ment,” “Supply Chain Security,” “Environmental Compliance Management,” and “Employees” have been identi?ed as themost critical topics (i.e., those with both ?nancial materiality and impact materiality). The Company will continue to payclose attention to these topics in its sustainability management and disclose relevant information in detail in this report.Based on Megmeet’s actual circumstances, the committee identi?ed two additional material topics beyond those listed inthe SZSE Guidelines: “Board Governance” and “Industry Cooperation and Development.”Since the company’s business does not involve scienti?c research or technological development activities in sensitive ?eldssuch as life sciences or arti?cial intelligence, and the company does not fall under any of the two situations listed in Article46 of the SZSE Guidelines, the company has identi?ed the topics of "Equal Treatment of SMEs" and "Technology Ethics"as non-material topics and, in accordance with the SZSE Guidelines, will not disclose them here.
high
highlow
Financial Importance to Megmet
Social Contribution
Product and Service Safety and Quality
Innovation-driven
Supply Chain SecurityEmployee
Industrial Cooperation and DevelopmentEqual Treatment of Small and Medium-sized EnterprisesTechnology Ethics
Ecosystem and Biodiversity Protection
Addressing Climate Change
Energy UtilizationEnvironmental Compliance Management
Water Resource UtilizationCircular Economy
Pollutant EmissionsWaste DisposalStakeholder Communication
Social IssuesEnvironmental IssuesGovernance issues
Have ?nancial importancebut not impact importanceImpactful but not ?nancially signi?cant
Issues that are both ?nancially importantand impact-signi?cant
Board Communication
Due DiligenceAnti-commercial Bribery and Anti-corruption
Anti-unfair Competition
Data Security and Customer Privacy Protection
In building the company’s sustainable development governance structure, Megmeet integrates ESG goals into strategicdecision-making, organizational processes, and daily operations, forming a top-down systematic management loop. Ledby the board of directors, the company clearly de?nes governance responsibilities and strategic objectives, establishes amulti-layered execution network, creates standardized management tools, and strengthens supervision and incentivemechanisms.
Megmeet ensures that relevant personnel possess su?cient professional skills and capabilities by hiring professionals witha background in sustainable development. The company has developed a training plan to enhance the sustainable develop-ment skills of management sta? and invites senior industry experts to provide training on the latest ESG policy context,development trends, and industry best practices.The company holds an ESG committee meeting every year to review the progress towards goals and adjust strategies,ensuring that sustainable impacts, risks, and opportunities are incorporated into the company’s strategy. Key progress issubmitted to the board for review. In accordance with the Shenzhen Stock Exchange's "Sustainable Development ReportGuidelines," the company publishes an annual ESG report within four months after the end of each ?scal year, coveringquantitative indicators and qualitative analysis in the three major dimensions of Environment, Social, and Governance(ESG).The board supervises the company's sustainable development-related impacts, risks, and opportunities through approvingstrategies, assessing risks, setting goals, overseeing execution, and reviewing performance. Additionally, the company linksthe management performance evaluation to the performance of sustainability-related topics.
1718
Analysis Results of Material Topics
Megmeet ESG Materiality Issues Matrix
Sustainable Development GovernanceG4Sustainable Development Governance Structure
Chairman of ESG Management System Construction Committee
Esg Management System Construction ConsultantResponsible for the overall operation of the ESG management system constructioncommittee, ensuring the necessary resources for the committee's sustained ande?ective operation.Ensure that the committee has the necessary professional resources to participatein high-level interviews and provide professional advice to support the operation ofthe committee.
Supervise the assessment of thecompany's sustainable develop-ment related impacts, risks, andopportunities; Guide and reviewthe company's sustainabledevelopment policies, strategies,and goals; Regularly monitor theprogress and completion ofsustainable development relatedgoals; Approve the company'sSustainable Development Report
Decision Layer
Executive Director and Deputy Director of ESGManagement System Construction CommitteeResponsible for communicating with service agencies, developing ESG work plans,organizing company personnel to complete annual ESG information collection,assisting in the completion of ESG reports and smooth disclosure. Cooperate withservice agencies to complete the quantitative performance indicator manual forMegmeet ESG performance management, establish responsible personnel for eachESG module of the company, develop work guidelines and standardized processes,and ensure the perfect operation of the company's ESG management system.
Supervise the assessment of thecompany's sustainable develop-ment related impacts, risks, andopportunities; Guide and reviewthe company's sustainabledevelopment policies, strategies,and goals; Regularly monitor theprogress and completion ofsustainable development relatedgoals; Approve the company'sSustainable Development Report
Management
Executive Committee Member of ESG ManagementSystem Construction CommitteeParticipate in the collection of annual ESG module disclosure data, participate inESG module management planning, develop ?xed templates and processes forsmooth daily collection and supervision work.
Coordinate the preparation ofsustainable development reports;Responsible for sustainablemanagement, data statistics andanalysis of the company; Imple-ment the sustainable developmentwork plan; Regularly report workresults to management
Execution Layer
Harmonious HumanityTrust and Shared SuccessAbout MegmeetCorporate GovernanceGreen and Low-CarbonMegmeet 2024 ESG Report
Importance to Economic, Social and Environmental Impacts
Megmeet strictly adheres to national policies, regulations, and guidelines such as the "Criminal Law of the People'sRepublic of China" and the "Interim Regulations on Prohibiting Commercial Bribery," and has established and followsmanagement systems such as the "Regulations on Handling Violations and Disciplinary Actions" and the "Procurement andRelated Business Conduct Code." The company insists on anti-corruption and integrity practices, taking serious actionsagainst illegal and non-compliant behaviors to ensure the integrity and compliance of its operations.Upon joining the company, new employees sign a "Integrity Commitment Letter." In the event of any violation, the companywill take strict action, including dismissal without compensation or referral to relevant government authorities. During thereporting period, Megmeet has not encountered any major commercial bribery or corruption incidents, nor has it terminat-ed cooperation with business partners or been investigated or penalized by relevant authorities.The company adheres to a zero-tolerance policy for corruption, bribery, and major fraudulent activities, and has estab-lished several e?cient and accessible reporting channels:
Megmeet strictly adheres to relevant laws and regulations such as the "Company Law," "Securities Law," and the "Code ofCorporate Governance for Listed Companies," continuously improving the company's corporate governance structure andestablishing a sound internal control system. The company has established a standardized governance structure based onthe articles of association, with the shareholders' meeting, board of directors, supervisory board, and management as themain bodies, ensuring the formation of a coordinated and balanced mechanism between the power structure,decision-making body, supervisory body, and management with clear responsibilities and standardized operations.The Board of Directors has four specialized committees: the Audit Committee, the Strategy Committee, the Remunerationand Appraisal Committee, and the Nomination Committee, as well as the Board O?ce. Each of these committees isresponsible for tasks such as auditing, development strategy, the nomination, selection, management, and evaluation ofdirectors and senior management. In accordance with the "Code of Corporate Governance for Listed Companies" and thecompany's "Work System for the Board of Directors' Specialized Committees," these committees diligently perform theirduties, fully leveraging their professional expertise and functional roles, providing strong support for the Board of Direc-tors' decision-making.The company has formulated the "Articles of Association of ?Shenzhen Megmeet Electrical Co., Ltd." in strict accordancewith the "Company Law," specifying the election procedures for selecting directors and hiring senior management. TheBoard of Directors consists of ?ve directors, including two independent directors. The company has one female director,accounting for 20% of the total board members. The number and composition of the Board of Directors comply with thelegal and regulatory requirements, and the board considers diversity to enhance its capabilities and overall governance.The Board of Directors operates in accordance with the "Board Meeting Rules," "Measures for the Management ofIndependent Directors of Listed Companies," and "Guidelines for Self discipline Supervision of Listed Companies on theShenzhen Stock Exchange No. 1- Standardized Operation of Main Board Listed Companies" and other relevant regulations.According to Megmeet’s “Independent Director Working Rules,” independent directors shall constitute at least one-third ofthe Board, and at least one independent director must be an accounting professional. Independent directors are notin?uenced by the company’s controlling shareholders, actual controllers, or any other entities or individuals with vestedinterests in the company. They perform their duties independently and are able to express independent opinions on majorcompany matters.
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Board ManagementG5
Board of Directors
The Supervisory Board of Megmeet consists of three members, including one employee representative supervisor electedby the employee representative assembly. The number and composition of the Supervisory Board comply with the relevantlaws, regulations, and the provisions and requirements of the Articles of Association. In accordance with the ShenzhenStock Exchange Listing Rules, the Articles of Association, and the Rules of Procedure for the Supervisory Board, theSupervisory Board diligently performs its duties by supervising major company matters, ?nancial conditions, and thecompliance of directors and senior executives in the performance of their duties, thereby safeguarding the legitimaterights and interests of the company and its shareholders. In 2024, Megmeet held a total of eight Supervisory Boardmeetings and reviewed and approved 30 resolutions.
Supervisory Board
In 2024, Megmeet held a total of 8 Board meetings and approved 42 resolutions.
In 2024, the Company held a total of two general meetings of shareholders, including one annual general meeting and oneextraordinary general meeting. The convening and holding procedures, quali?cation of attendees, voting procedures,disclosure of voting results and resolutions were all in compliance with laws, regulations, and the Company’s Articles ofAssociation. Both physical attendance and online voting were provided to ensure that shareholders could participateequally and e?ectively in corporate governance. When reviewing and electing non-independent directors, independentdirectors, and supervisors, the cumulative voting system was adopted. These mechanisms e?ectively safeguarded therights of minority shareholders to be informed, to participate, and to make decisions, thereby protecting the legitimateinterests of all investors.
General Meeting of Shareholders
The compensation plans for the Company’s directors, supervisors, and senior management are proposed by the Remuner-ation and Appraisal Committee and implemented upon approval by the Board of Directors and subsequent resolution bythe General Meeting of Shareholders. The remuneration for other senior management personnel is implemented after beingapproved by the Board of Directors upon the proposal of the Remuneration and Appraisal Committee. From 2022 to 2024,the number of directors, supervisors, and senior executives at Megmeet remained stable at 10, and their total compensa-tion accounted for approximately 3% of the total employee compensation, with the proportion showing a slightyear-on-year decline.
Executive Compensation
Anti-Commercial Bribery and Anti-CorruptionG6
Management of Commercial Bribery and Corruption
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The Megmeet Discipline and Supervision Committee is the compa-ny’s primary oversight body, responsible for monitoring andinspecting the legal and compliant operation of all business units,platform departments, and business activities across the Group. Itensures the proper implementation of the Group’s rules andregulations, handles internal and external reports as well asviolations identi?ed through supervision, and safeguards theinterests of the Group. For suspected violations of discipline orregulations, a dedicated investigation team will be formed toconduct inquiries and implement corresponding disciplinarymeasures based on the ?ndings. Cases involving illegal activities willbe transferred to the relevant judicial authorities for further action.
The company’s Discipline and Supervision Committee carries out its oversight duties based on several key principles:
con?dentiality and protection, fact-based and lawful compliance, con?ict of interest avoidance, integration of supervisionwith continuous improvement, and the right to appeal. Violations of discipline or regulations are subject to strict penaltiesin accordance with company policies, including warnings, demotion, reassignment, salary deductions, and withholding ofyear-end bonuses. In severe cases, o?enders will be handed over to the relevant judicial authorities for criminal prosecu-tion. The company emphasizes the importance of anti-corruption and integrity, encouraging all employees to complyvoluntarily and uphold the company’s reputation and image, thereby laying a solid foundation for Megmeet’s sustainabledevelopment.
Megmeet, in accordance with laws and regulations such as the Anti-Unfair Competition Law, Anti-Monopoly Law, andRegulations on the Protection of Trade Secrets, has incorporated anti-unfair competition clauses into its Regulations onHandling Violations of Discipline, Megmeet Employee Handbook, and Supplier Agreements, ensuring compliance manage-ment across the entire value chain. The company explicitly prohibits practices such as false advertising, commercialbribery, monopoly agreements, and infringement of trade secrets.The company has established a Discipline and Supervision Committee responsible for formulating and overseeing theimplementation of anti-unfair competition policies. This committee coordinates risk identi?cation, investigation of reports,and the enforcement of corrective measures, and regularly reports to the Board of Directors. Each year, Megmeetconducts risk assessments of the market competition environment to identify high-risk scenarios such as false advertising,price manipulation, and data theft. At the same time, the company performs compliance reviews of marketing activities,bidding documents, and technical cooperation agreements, implementing a dual-review mechanism to ensure the authen-ticity and legality of all content.
Anti-Unfair Competition
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G7
Employees can submit feedback through any of the above channels. Upon receiving the feedback, the company willforward it to the relevant department for handling and ensure timely follow-up to close the loop. Once the matter isresolved, the relevant department will inform the submitter of the outcome and, if necessary, issue an announcement tocommunicate the results and any improvement measures. The company is committed to maintaining open feedbackchannels at all times, responding promptly, and following up on any issues until they are fully resolved.
Reporting Channels
Company EIP intranet: Issue Hotline section.Feedback email: qywh@megmeet.com.Anti-corruption reporting email: compliance@megmeet.com.Group WeChat o?cial account: MEGMEET麦米电气Physical suggestion boxes: Public areas in each regional o?ce (e.g., reception or break areas).
The company supports anonymous reporting. As long as the information provided is truthfuland reliable, it can be used as the basis for an investigation.Anonymous
Reporting
The company strictly prohibits any form of retaliation. If an employee experiences unfairtreatment or retaliation as a result of reporting, the matter will be investigated and dealtwith severely, and the whistleblower will be provided with strict legal protection.
Anti-Retaliation
Policy
The company has established comprehensive protective measures, including but not limitedto con?dentiality of identity, job reassignment, legal assistance, etc., to ensure the safetyand rights of the whistleblower.
ProtectiveMeasures
Employees who report serious violations that are subsequently veri?ed will receive materialor moral rewards, to encourage active participation in monitoring and maintaining thecompany’s positive operational environment.Reward System
All external promotional materials at Megmeet must undergo joint review by the Legal andTechnical Departments to ensure that descriptions related to product performance,certi?cations, and other claims are factual and accurate.?Prevention ofFalse Advertising
Megmeet enforces pricing control policies and has issued relevant regulations prohibitingprice-?xing or market division agreements with competitors.Anti-Monopoly andFair Competition
Departing employees are required to sign a Con?dentiality Commitment Letter, pledging toprotect technical and business secrets. Suppliers are required to sign Non-DisclosureAgreements (NDAs), and regular information security audits are conducted during coopera-tion to ensure supply chain information security is e?ectively managed.
Protection ofTrade Secrets
Megmeet provides anonymous reporting channels (email and WeChat o?cial accountmessages). The company ensures these channels remain accessible while safeguardingwhistleblower privacy. Once a report is veri?ed, an investigation is initiated within 48 hours.
Whistleblower
Mechanism
In accordance with the Regulations on Handling Violations of Discipline, employees found inviolation are subject to strict penalties, including warnings, demotion, reassignment, salarydeductions, and withholding of year-end bonuses. In serious cases, o?enders will bereferred to judicial authorities for criminal prosecution.
Violation Handling
and Disciplinary
Measures
Monitoring of Commercial Bribery and Corruption
Anti-Unfair Competition Policies and Regulations
Speci?c Measures and Implementation
During the reporting period, there were zero lawsuits or major administrative penalties result-ing from unfair competition practices by the company.
Megmeet 2024 Annual Integrity Pledge Conference
Harmonious HumanityTrust and Shared SuccessAbout MegmeetCorporate GovernanceGreen and Low-CarbonMegmeet 2024 ESG Report
Harmonious HumanityTrust and Shared SuccessAbout MegmeetCorporate GovernanceGreen and Low-CarbonMegmeet 2024 ESG Report
Green and Low-Carbon
Megmeet adheres to the philosophy of "Technology Drives a Green Future," integrat-ing environmental responsibility throughout the entire product development, produc-tion operations, and supply chain management processes. The company continuouslypromotes the low-carbon transformation of the electrical industry. By increasing theuse of renewable energy and innovating green technology research and development,Megmeet systematically reduces environmental impact. The company will continue todeepen its e?orts in zero-carbon technology, empowering the optimization of globalenergy structures and ecological protection through technological advancements.E1 Climate Change ResponseE2 Energy UseE3 Water UseE4 Environmental ComplianceE5 EmissionsE6 Waste ManagementE7 Circular EconomyE8 Ecosystem and Biodiversity Protection
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Strategy and Resource Adjustment
Strategic AdjustmentMegmeet has positioned “green products + circular economy” as its long-term strategic core, integratingresources and operations across its subsidiaries and major factories to establish a closed-loop system of“green R&D – green procurement – green production – green recycling.”
Resource AllocationThe company has established a dedicated sustainability fund, allocating a certain proportion speci?cally toinitiatives such as green factory upgrades, green supply chain management, and low-carbon product technologyR&D.
Business Model InnovationMegmeet positions itself as a one-stop solution provider in the ?eld of electrical automation, covering hardwareand software R&D, production, sales, and services. It o?ers ODM/JDM services for power electronic compo-nents and systems to major clients across various industries both domestically and internationally.
To address climate-related risks and opportunities, the company has made adjustments in its strategy, businessmodel, and resource allocation:
E1Climate Change Response
Climate change has a profound impact on Megmeet’s production stability, cost structure, and market competitivenessthrough extreme weather events, policies and regulations (such as carbon tari?s), and shifts in market demand (e.g.,preference for low-carbon products). In response to the adverse e?ects of climate change, we are addressing thesechallenges through green energy transformation, low-carbon technology research and development, and supply chaincollaboration to reduce carbon emissions.
Policy andregulatorychanges
Domestic CCER carbon trading regulations are constantly evolving, while internationally, theEU’s CBAM (Carbon Border Adjustment Mechanism) is still in a transitional phase. Rulesspeci?c to the electronics and electrical industry have yet to be clari?ed, making it impossibleto estimate the additional costs the company may face.
Technologymaturityand costs
The R&D costs of low-carbon technologies may restrict the widespread application of newtechnologies, resulting in cautious investment by the company in low-carbon technologydevelopment.
Physical risks ofextreme weather
Physical risks such as ?ooding, lightning, and extreme heat in the locations where factories aresituated are often di?cult to predict.Market demand?uctuations
There is a risk that the premium of low-carbon products may not be widely accepted by themarket.
The major uncertainties considered in assessing its climate resilience include the following aspects:
Harmonious HumanityTrust and Shared SuccessAbout MegmeetCorporate GovernanceGreen and Low-CarbonMegmeet 2024 ESG Report
Megmeet continuously enhances its ability to adjust strategies and business models in response to climate change acrossvarious aspects, including strategy formulation and governance, technological innovation and application, supply chain andecosystem collaboration, risk management and resilience building, as well as resource integration and ?nancial support.
Policies andRegulations
TechnologyTransition
Risks
Physicalrisks
Short toMediumTerm
Short toMediumTerm
Market
Mediumto LongTerm
Reputation
Acute
Medium toLong Term
Short term
The uncertainty of changing consumerbehaviors and market signals. On one hand, itis di?cult to predict the premium consumersare willing to pay for green and low-carbonproducts; on the other hand, it is challengingto gauge the market demand for theseproductsThere is ongoing attention from all sectors ofsociety regarding the company's response toclimate change and sustainable development.Stakeholders expect the company to take onmore environmental responsibility, and failureto meet these expectations could expose thecompany to the risk of reputational damage
Climate warming has led to the frequentoccurrence of extreme weather events such ashigh temperatures, typhoons, heavy rainfall,and ?oods.
?Plan and equip cooling facilities as needed
for temperature reduction?Equip ?re protection facilities?Plan for multiple transportation methods and
schedule logistics in advance based on
weather warnings?Ensure adequate inventory of material
reserves?Regularly conduct emergency drills and
training for extreme weather events
Tightening Carbon Emission ManagementPolicies and Regulations:
Transition to Energy-E?cient andLow-CarbonTechnologies:
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Physicalrisks
ChronicLong term
Sea level rise: Coastal operating entities mayneed to relocate inland, and damage orpremature scrapping of ?xed assets can leadto increased production costs
?Continuously monitor sea level rise trends?Consider the impact of sea level rise when
selecting operational locations?Develop multiple suppliers in di?erent
regions for the same category to ensure a
stable supply of raw materials
Climate-RelatedRisk Categories
TimeHorizon
Risk Description and ImpactRisk Mitigation Measures
Impact, Risk, and Opportunity Management
Strategy – Transition Plan
?ncreasingly stringent greenhouse gas
emission reporting requirements, leading tohigher compliance costs for carbon emissions?A clear trend toward carbon tari?s ininternational trade, potentially resulting inincreased costs?The industry may be a?ected by carbon
market mechanisms, leading to higheroperational costs?Early phase-out of high energy-consuming
equipment and the retirement or write-o? ofexisting assets, leading to increasedoperational costs?Increased expenditures on the research,
development, and application of clean energyor innovative low-carbon technologies
?Choose mature, low-energy, low-emission
instruments and equipment available in themarket?Actively collaborate with universities and
research institutions on industry-aca-demia-research projects to advance thedevelopment of energy-saving and low-car-bon technologies, sharing risks collectively?The company allocates resources appropri-
ately towards market analysis, closelymonitoring market trends to seize salesopportunities
?Continuously monitor public opinion and the
expectations of the company's stakeholdersregarding its response to climate change andsustainable development
?Monitor the dynamics of carbon emission
policies and regulations in operating regionsto respond appropriately to policy and legalupdates?Adopt energy-e?cient production equipment
and proactively implement energy-saving andemission-reduction projects?Strengthen carbon reduction e?orts across
the entire production and operation process
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Transition Plan and Key Assumptions
Short-term (1–3 years)Optimize the energy structure and expand the coverage of distributed photovoltaic systems; implement asupplier screening system that incorporates carbon management into supplier admission criteria.Medium-term (3–5 years)Continuously advance technological R&D related to low-carbon products; enhance corporate carbon emissionsmanagement through digitalization.Long-term (over 5 years)Megmeet will continuously adjust its business model to address the impacts of climate change by building acircular economy loop, fostering cross-industry climate collaboration, and transforming into a “green solutionprovider.”When formulating its transition plan, the company primarily relies on the following key assumptions:
1.The domestic government will continue to strengthen climate policies, while international laws and regulations
related to climate change will become increasingly stringent.
2.The cost of key low-carbon technologies will signi?cantly decline.
To adapt to climate change and respond to increasingly severe and frequent extreme weather events, Megmeethas formulated a transition plan that outlines short-term, medium-term, and long-term strategies, along withcorresponding adjustments to its business model.
Safeguard Measures for the Transition PlanIn the process of transitioning to address climate change, Megmeet has systematically allocated diverse resourcesto support the achievement of strategic goals. In terms of ?nancial resources, we have established a dedicatedlow-carbon fund; In terms of technological resources, we actively promote the application of digital technologiesto assist in energy-saving and low-carbon management; In terms of human resources, we have formed asustainability professional team and optimized the organizational structure and talent development system. Wealso plan to collaborate with governments, research institutions, and non-governmental organizations to jointlydrive climate action and the innovation and application of green technologies.
As an enterprise focused on environmental responsibility, Megmeet is committed to the application and innovation of greenenergy-saving technologies. The company actively invests in green product R&D and energy-saving technology applica-tions, integrating “green” and “energy-saving” into various stages such as product design, production manufacturing, andcorporate operations. This helps reduce the overall greenhouse gas emissions of the company’s operations and products,and promotes both the company and its customers to better ful?ll their environmental responsibilities.
In October 2023, iKAHE Sanitary Ware was awarded the title of Green Design Demonstration Enterprise for IndustrialProducts by the Ministry of Industry and Information Technology. The company develops green products and promoteseco-friendly design by utilizing a digital information management platform, applying photovoltaic power stations andenergy storage stations, and testing systems for 100% water reuse. Using PLM and PMS, the company optimizes productstructure and process layout to reduce production material waste. It has developed water-saving and energy-e?cientproducts that meet ?rst-class water e?ciency and energy e?ciency standards. The company actively participates in thedevelopment of various standards, technical speci?cations, and policies related to green design, green products, and greenmanufacturing. It has participated in the formulation of 23 standards, including 4 national standards, 1 industry standard,17 group standards, and 1 enterprise standard. In 2024, the company added 2 national standards, 2 group standards, and 1enterprise standard to its participation.
Low-Carbon Products and Technologies
Focusing on Energy Conservation and Low-Carbon, Creating Green Products
Megmeet is fully committed to creating green products, giving full consideration to energy conservation and environmentalfactors throughout the processes of R&D design, production, and use. The company strives to reduce its environmentalimpact and improve resource e?ciency.Two wholly-owned subsidiaries of the company, Zhuzhou Megmeet Electric Co., Ltd. (Zhuzhou Electric) and ZhejiangiKAHE Sanitary Ware Co., Ltd. (iKAHE Sanitary Ware), are recognized as national-level green factories by the Ministry ofIndustry and Information Technology. They conduct product carbon footprint calculation and certi?cation in accordancewith standards such as ISO 14067 and PAS 2050, assessing the potential climate and environmental impacts across the
entire lifecycle of the products. Currently,Yihe Sanitary Ware has completedthird-party veri?cation of the carbonfootprint for its entire range of products,while Zhuzhou Electric has completed carbonfootprint certi?cation for its photovoltaicmodule product (MS483000HG). Thecompany comprehensively analyzes theresults of carbon footprint veri?cation andoptimizes the high-energy consumption andhigh-emission process links to graduallyreduce the product's carbon footprint value.
The company’s R744 heat pump-type thermal management system is madeusing recyclable materials such as aluminum and plastic (reducingemissions during the product's end-of-life recycling process). It uses R744refrigerant, which has characteristics of 0 ODP and 1 GWP, helping toreduce emissions from Scope 1 fugitive emissions. The system utilizesspeci?c algorithms to improve the driving range of electric vehicles in winter(reducing emissions during the product’s use phase), signi?cantly loweringthe greenhouse gas emissions across the product’s entire lifecycle.
R744 Heat Pump-Type Thermal Management System
The bi-directional two-in-one on-board power supply for new energy vehiclesdeveloped by Megmeet integrates charging, inversion, and DC-DC conversionfunctions. The product converts the high-voltage power from the vehicle’sdrive battery into low-voltage 12V power, which is used to supply power to thevehicle’s low-voltage system. The product features high power density andadvanced control technology, covering power segments from 1 to 3 kW, withe?ciency exceeding 95%. This enhances the energy conversion e?ciency ofnew energy vehicles during operation and signi?cantly reduces energy loss. Theproduct has a compact structure and ?exible installation, allowing for electricalintegration with components such as OBC/MCU. This product has beensuccessfully applied to multiple passenger vehicles, logistics vehicles, and busair conditioning systems, providing reliable power support for various types ofvehicles.
New Energy DC-DC On-Board Power Supply
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Aerogel Insulation Materials
Beyond green and low-carbon products, Megmeet is also actively engaged in energy-saving and low-carbon transforma-tions at the operational level. By introducing advanced energy-e?cient technologies and equipment, the company hasachieved signi?cant reductions in energy consumption during production processes. At the same time, Megmeet hasincreased the use of renewable energy to replace traditional fossil fuels, further reducing carbon emissions.
Megmeet provides one-stop solutions for OEM, ODM, SKD, andNon-Brand Standard Products through its strong R&D capabilities ande?cient manufacturing platform. The company’s 40kW liquid-cooledcharging module adopts an industry-leading liquid cooling solution,featuring a unique waterway design. The product has a design life ofup to 10 years, signi?cantly exceeding the industry average. Thisproduct uses silicon carbide (SiC) components, with an e?ciency of upto 96%, reducing energy loss during use and saving electricityconsumption. It is applied in new energy vehicle charging piles,contributing to energy conservation and emission reduction.
EV Charging Pile SolutionThe company’s pure electric forklifts and aerial work platform machinery products o?er advantages such as zeroemissions, ultra-low noise, and low vibration. They are equipped with an exclusive high-performance Digital SignalProcessor (DSP) and advanced motor control algorithms for electric torque and speed regulation. The productsfeature a variety of ?exible application interfaces, including 8 SW ports, 5 DRIVER ports, 2 Analog Inputs (AI), and 1Analog Output (AO). They are easy to maintain, have longer maintenance cycles, lower maintenance costs, and alonger product lifecycle. Compared to traditional fuel-powered products, they achieve a cost saving of 77.78%, withsigni?cant advantages in energy conservation and emission reduction.
Megmeet L6 Low-Voltage Drive Series
Megmeet focuses on the engineering industry by introducing an energy-e?cient and eco-friendly alternative totraditional high-energy-consuming pumping units—the Electric Submersible Screw Pump Intelligent Oil ExtractionSystem. The company actively explores solutions that are green, safe, reliable, and intelligently managed, aiming toachieve an organic integration of digitalization and environmental sustainability.The company has redesigned and optimized traditional pumping unit equipment, developing an Electric SubmersibleScrew Pump Intelligent Oil Extraction System that occupies only 5 square meters and operates at a power of just 7.5kW. Compared to products with the same displacement, it saves over 50% in electricity consumption, signi?cantlyreducing energy usage. In addition, unlike traditional pumping equipment (such as conventional pumping units andsurface direct-drive screw pumps), the electric submersible screw pump system eliminates wellhead leakage, o?eringdistinct advantages in environmentally sensitive areas.The system was later equipped with temperature and pressure measurement devices as well as an APP-based remotecontrol, enabling intelligent operation. It can automatically adjust the rotation speed to ensure coordination betweenoil well supply and discharge, and to maximize output. This enhances the ?exibility and economic e?ciency of oilextraction, paving the way for forward-looking innovation in digitalized oil?eld development.At present, the Electric Submersible Screw Pump Intelligent Oil Extraction System has been widely applied in horizon-tal wells, low-production wells, heavy oil wells, sand-containing wells, and deviated wells. In Changqing Oil?eld—PetroChina's largest oil?eld—it holds over 90% market share in the rodless screw pump extraction segment, trulyachieving digital energy e?ciency, safety, and reliability in e?cient oil extraction within the petrochemical industry.
Intelligent Oil Extraction System
Focus on Green Technologies to Build Low-Carbon Factories
The Megmeet Changsha Intelligent Industrial Center uses highly e?cient
energy-saving material—aerogel. Aerogel has an extremely low thermal conductivi-
ty, providing 2 to 3 times better insulation performance compared to traditional
materials. This e?ectively reduces the transfer of temperatures between the interior
and exterior of the building, thereby lowering the overall energy consumption of the
building. In addition, aerogel has excellent ?re resistance, a long service life, and is
not prone to settling or decomposition. It also has good hydrophobic properties,
meeting the heat protection requirements for summer while o?ering adequate
insulation for winter.
Photovoltaic + Energy Storage + Charging + Car Wash Machine Integrated Project
The Megmeet Changsha Intelligent Industrial Center has successfully implemented the Photovoltaic + Energy Storage
+ Charging Integrated Project, integrating photovoltaic power generation, energy storage, and charging facilities to
provide sustainable energy solutions for the park. On one hand, photovoltaic power generation supplies renewable
and clean energy (powering the park’s charging stations and car wash machines), reducing dependence on tradition-
al fuels and lowering environmental pollution and greenhouse gas emissions at the source. On the other hand, the
batteries and energy storage devices ensure that the system continues to supply power even during periods of
insu?cient sunlight.
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Air Source Heat Pump TechnologyThe Megmeet Changsha Intelligent Industrial Center has introduced an air sourceheat pump system, which converts low-grade heat energy from the air intohigh-grade heat energy, achieving the regeneration and reuse of energy andminimizing energy waste. The air source heat pump system has an annualintegrated energy e?ciency of 3.5, demonstrating excellent energy-savingcharacteristics. After being put into operation, it is expected to further enhanceenergy e?ciency and achieve higher energy-saving results. The hot water supplyfor the dormitories and canteens uses air source heat pump technology, e?ec-tively reducing the energy consumption of traditional hot water supply methods.The air source heat pump is equipped with an electric auxiliary heating function,which provides additional heating capacity in extreme weather conditions, such ascold winters, ensuring the stability and reliability of hot water supply. The airsource heat pump technology reduces reliance on traditional coal or gas heatingmethods, lowering the emissions of carbon dioxide and other pollutants.
Solar Photovoltaic Power Station Construction
Megmeet's wholly-owned subsidiary Zhuzhou Electric has installed a rooftopphotovoltaic power station that uses polycrystalline silicon solar cell technology.The total area of the solar panels is approximately 20,000 m?, and the actualelectricity generation, after accounting for various factors, reaches 1.204 millionkWh per year. By 2024, the total electricity generated will reach 5,528 MWh, allof which is used on-site. In response to the national call for the development ofclean energy, Zhuzhou Electric has signed a photovoltaic energy managementcontract. The company utilizes the idle rooftops of existing factories and o?cebuildings and applies polycrystalline silicon solar cell technology, with a totalpanel area of approximately 20,000 m?. The actual electricity generation, afteradjustments, reaches 1.204 million kWh per year, replacing electricity with cleanenergy to reduce carbon emissions.
Air Compressor Waste Heat Recovery Project
Zhuzhou Electric has launched a waste heat and pressure utilization project. The entire waste heat recoverysystem has been in operation since March 2023, with a cost of 365,000 RMB. The system recovers the wasteheat generated by the air compressor system, providing hot water for the employee dormitories and signi?cantlyreducing energy consumption. Speci?cally, the system saves approximately 74,000 cubic meters of natural gas peryear, reducing the cost of heating water with natural gas by about 250,000 RMB. This has helped reduce thecompany's operating costs. The Zhuzhou base cools the high-temperature, high-pressure gas generated by thefactory’s air compressors using water, producing 40-50°C hot water to supply part of the domestic hot water tothe o?ce building. This not only saves energy from the air compressors but also lowers their temperature,improving operational e?ciency. It is an e?ective and energy-saving method with a short payback period.
Commercial and Industrial Energy Storage Power Station Projects
Megmeet Electric Zhuzhou Blue Valley Park Commercial and Industrial EnergyStorage Power Station, with a construction capacity of 0.86 MWh, was put intooperation in September 2023. It is expected to save approximately 300,000 yuanin electricity costs annually. The energy storage station in the Zhuzhou Park usespeak shaving and valley ?lling to balance the peak-valley price di?erence, therebyreducing the company's electricity costs. The control part of the energy storagestation, PCS, PACK, and the entire system are all self-developed and producedby Megmeet Electric. It is expected to save electricity costs for the company forabout 10 consecutive years, with signi?cant energy-saving bene?ts.
Variable Frequency Energy-saving Street Lighting
Megmeet's wholly-owned subsidiary iKAHE Sanitary Ware has achieved the goalsof energy conservation, emission reduction, and low-carbon environmentalprotection by installing variable frequency energy-saving street lighting. Thelighting and control system at the iKAHE Sanitary Ware factory has beenprofessionally designed by a national-level registered lighting designer. It usesadvanced photovoltaic street lights equipped with a timed automatic dimmingfunction, e?ectively utilizing natural light resources, reducing dependence ontraditional energy, and lowering energy consumption.
Injection Molding Workshop Lighting System Renovation
Megmeet's wholly-owned subsidiary iKAHE Sanitary Ware commissioned a professionallighting design team to carry out the design and installation of the lighting and controlsystem in the injection molding workshop. All switches in the injection molding and moldworkshops are equipped with wire-free kinetic switches, which do not require batteries orwiring. Additionally, with the integration of an intelligent system, the entire workshop'slighting can be turned on as needed with a single button (scene control). It can later beupgraded to smart scene control (the East section of the injection molding workshop hasalready set up a one-click scene). Managers can pre-set lighting scenes via a mobile appinterface according to production needs, avoiding waste while meeting lighting require-ments.
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Megmeet follows the GHG Protocol standards and has commissioned external consultants to conduct a greenhouse gas(GHG) carbon inventory for the entire company. During the calculation process, the operational control method is used toconsolidate the GHG emissions. Priority is given to obtaining missing data through communication within the supply chain.Appropriate methods such as regression, mean, mode, and median imputation are employed to handle missing data.Based on data collection and statistical results, the total and intensity data for Scope 1, 2, and 3 greenhouse gasemissions for the years 2022-2024 from Megmeet Group's subsidiaries, including Zhuzhou Electric, iKAHE Sanitary Ware,Megmeet Thailand, and Megmeet Shenzhen, are as follows:
Greenhouse Gas Emissions
IndicatorsUnit2022 20232024Total Greenhouse GasScope 1 Total Greenhouse
Gas EmissionsScope 2 Total Greenhouse
Gas EmissionsScope 3 GreenhouseGas Emissions Total
Greenhouse GasEmissions Intensity
Tons of CO
Equivalent (tCO
e)Tons of CO
Equivalent (tCO
e)Tons of CO
Equivalent (tCO
e)Tons of CO
Equivalent (tCO
e)tCO?e per 10,000 RMBof Revenue
17171012.40
1296.5216863.6917152852.19
23.2329.3326.81
24306447.7423694225.01
20289.3926744.981180.50522.8024327917.6323721492.79
Megmeet is formulating science-based carbon targets and emissionsreduction plans in alignment with customer expectations.
SBTi Science-Based Targets
Megmeet's Emission Reduction Pathway
Scope 1: Direct Emissions
To ensure the successful achievement of the SBTi science-based carbon targets and meet the stakeholders' expectationsregarding Megmeet's greenhouse gas emissions, we have developed di?erent carbon reduction pathways for Scope 1,Scope 2, and Scope 3 emissions.
Establish a comprehensive energy management system to monitor and analyze energyconsumption. Install smart energy metering devices to monitor energy use in real-timeacross all production processes, develop energy management plans, and set clearenergy-saving targets and measures.EnergyManagementOptimization
Upgrade and retro?t production equipment; analyze and optimize production processes toreduce energy consumption; enhance the recovery and utilization of waste heat and energy.ImprovingEnergyE?ciency
Increase investment in R&D and establish long-term partnerships with universities andresearch institutions to jointly carry out cutting-edge carbon reduction technology projects.Actively promote the application of low-carbon technologies and transform R&D achieve-ments into practical productivity.Technology-DrivenInnovationScope 2: Indirect Emissions
Adopt renewable energy to reduce reliance on traditional fossil fuels. On one hand, buildrenewable energy facilities such as solar photovoltaic and wind power systems; on theother hand, sign long-term power purchase agreements with renewable energy suppliers toprocure green electricity.Use of GreenEnergy
Sign energy performance contracts with Energy Service Companies (ESCOs), which assessthe company's energy usage, propose energy-saving retro?t solutions, and are responsiblefor the implementation and operation of the projects. Megmeet pays based on the actualenergy savings achieved, thereby reducing both energy costs and greenhouse gasemissions.EnergyPerformanceContracting
Scope 3: Upstream and Downstream Value Chain Emissions
Establish long-term, stable partnerships with suppliers to jointly promote carbon reductionthroughout the supply chain. Strengthen supervision and evaluation of suppliers, andestablish a comprehensive supplier assessment system.EnhancedSupply ChainManagement
Utilize advanced logistics management systems to optimize transport routes and reducemileage and travel time. Use clean energy vehicles and gradually replace traditionalfuel-powered vehicles with electric or hybrid ones. Encourage employees to use greencommuting options.Promotion ofGreenTransportation
Establish a comprehensive waste management system. Reduce waste generation duringproduction through process optimization and the use of eco-friendly materials. Implementwaste classi?cation, recycling, and reuse, and explore energy recovery from waste.ImprovedWasteManagement
Strengthen carbon footprint management to reduce emissions throughout the productlifecycle. Conduct carbon footprint assessments, optimize product design, and introducecarbon labeling to inform consumers of the carbon footprint, guiding them towardlow-carbon product choices.Product CarbonFootprintManagement
Greenhouse Gas Emission Reduction Practices
We expect to submit our targets for validation by the Science BasedTargets initiative (SBTi) by the end of this year. At that time, ourscience-based carbon targets and action plans will align with the
1.5°C emissions reduction pathway outlined in the Paris Agreement,
demonstrating our active contribution toward achieving global carbonreduction goals.
?For Scope 1 and Scope 2 emissions, the company is setting
absolute targets, aiming to reduce absolute greenhouse gasemissions by 50% by 2030.?For Scope 3 emissions, Megmeet is setting an intensity-basedtarget, aiming to reduce greenhouse gas emissions from capitalgoods and the use of sold products per unit of gross pro?t by
51.6% by 2030.
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To encourage employees in various departments to propose valuable suggestions for improving production e?ciency andreducing carbon emissions in daily operations, employees are required to submit rational improvement suggestions withintheir scope of work through the "Rationalization Suggestion Form." The form includes the necessary investment andequipment required for the proposal, as well as an initial estimate of the implementation e?ect. Department heads evaluatethe suggestions submitted by employees and submit feasible proposals to the "Green Factory Working Leadership Team"for approval. Once approved, the leadership team will develop an implementation plan, monitor the implementation results,and provide evaluation feedback.
Megmeet has always adhered to relevant energy regulations, such as the "Energy Conservation Law of the People'sRepublic of China," and actively ful?lls its corporate social responsibility, striving to be a green pioneer in the industry.During the reporting period, the main energy consumed by the company includes direct energy (such as gasoline, diesel,and natural gas) and indirect energy (such as purchased electricity and self-generated solar power).
In the 2024 reporting period, the company achieved signi?cant progress. iKAHE SanitaryWare successfully passed the annual energy management system surveillance audit.Meanwhile, the Shenzhen headquarters and Zhuzhou Electric gradually established theirown energy management systems and obtained certi?cation in early 2025. The companyimplemented the energy management system in accordance with GB/T 23331-2020 /ISO 50001:2018 Energy Management Systems — Requirements with Guidance for Use,and developed a series of management policies and procedures, including the EnergyReview Management Measures, Energy Performance Parameters and Energy BaselineManagement Measures, Policy and Objectives Management Measures, and EnergyServices, Products, Equipment, and Energy Procurement Management Measures, amongothers.
Carbon Emission Management Incentive System
OperationalBoundaries
EmissionSources
Emission Reduction
Targets
CurrentStatus
Emission Reduction
Actions
Scope 1
Scope 2
范围三
Fuel Vehicles(Compa-ny-OwnedAssets)Renewableelectricity
By 2025, 80% of fossil fuelvehicles will be replacedwith new energy vehicles.By 2025, the annual solarphotovoltaic electricitygeneration will reach 7million kWh.
90% of thecompany's vehiclesare fuel-powered.The annual solarphotovoltaicelectricity generationwill reach 5.5 millionkWh.
Purchase new energy vehicles toreduce our Scope 1 emissions.The second phase of the solar photovoltaicproject at the Zhuzhou factory has enteredthe implementation stage. The plannedinstalled capacity for the photovoltaicsystem is 1.7 MW, with excess electricitybeing fed back into the grid. The expectedannual electricity generation is approximately
1.5 million kWh.
OperationalElectricityConsumption
Purchasedproducts andservices
WasteManagement
By 2025, the applicationrange of the feedback systemis expected to reach 80%,with an estimated electricitysavings of up to 2.3 millionkWh per year.Install and maintain variablefrequency control devices.
Expand the coverage of theenergy-saving lighting system,with an expected annualelectricity savings of 30,000kWh by 2025.
Continue execution andexpand the scope ofimplementation
Paper usage: ProcessITization rate reaches 90%;Printer IDization rate reaches90%
100% of speci?c solid wasteis recycled.
Purchase energy-e?cient variablefrequency air conditioners, paper andprinted materials that meet ISO 14001 andEMAS certi?cations, and other energy-sav-ing and environmentally friendly products.Department heads should strengtheneducation on paper conservation foremployees, control the amount of paperused in the o?ce, and encourage the use ofthe company’s IT system for non-essentialdocuments and second-hand paper. Printpermissions should be controlled via IDcards, with the number of prints and paperusage managed for each ID.During o?ce and factory renovations, metaland glass frame parts were reused toachieve a 100% recycling rate.
In progress
The IT digitizationrate of processesreaches 80%; theprinter ID ratereaches 70%.
purchase new
The application rangeof the feedbacksystem is approxi-mately 60%, with anestimated electricitysavings of around 1.9million kWh per year.Save 120,000 kWh ofelectricity per year.
An annual electricitysavings of 15,000kWh.
The feedback system replaces thetraditional resistive system, recyclingelectrical energy to form a closed-loopsystem. The energy recovery e?ciency canreach 60-90%, signi?cantly reducing energyconsumption.The workshop exhaust fan is equipped witha variable frequency adjustment device,which tests the air duct pressure andautomatically adjusts the exhaust fan speedto reduce unnecessary ventilation, resultingin a 30% reduction in electricity consump-tion. This will save more than 120,000 kWhof electricity annually.By adopting an energy-saving lighting system,energy consumption is reduced. The park'sstreetlights are equipped with Beidou latitudeand longitude control devices, which automat-ically calibrate and locate the local sunrise andsunset times, adjusting the brightness of eachlamp in a time-controlled manner. Comparedto traditional streetlights, this system saves20% in energy, resulting in an annual electrici-ty savings of 15,000 kWh.
The direct energy within the company's scope includes:
Types of Direct Energy
Energy Utilization ScenariosNatural Gas
Employee CanteenSolar Self-GenerationManufacturing
Operation of company-owned vehicles
Purchased electricityProduction and manufacturing
Operation of company-owned vehiclesOperation of backup diesel generators
GasolineDiesel
Energy UtilizationE2
Energy Management Policy
Green, Low Carbon, Energy Conservation, and E?ciency Improvement.
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The company has established a systematic energy management approach and supervision mechanism. Through feasibilitystudies and analysis, it sets annual quota targets and adopts an assessment mechanism to promote green production andeliminate resource waste. Meanwhile, energy-intensive and ine?cient equipment is upgraded to support the developmentof a low-carbon economy.Based on data collection and statistical results, the energy consumption indicators of Megmeet Group—including ZhuzhouMegmeet Electrical, iKAHE Sanitary Ware, Megmeet Thailand, and Shenzhen Megmeet—for the years 2022 to 2024 areshown as follows.IndicatorUnit202220232024Total electricityconsumptionPhotovoltaic electricity
consumptionMunicipal electricityconsumptionOverall energyconsumptionOverall energyconsumption intensity
Megawatt hour (MWh)Megawatt hour (MWh)Megawatt hour (MWh)Ton of standard coal (tce)Kilograms of standardcoal per ten thousandyuan of output value(kgce/ten thousand yuan)
30983.761413.9029569.863807.90
5.16
36924.161549.1535375.014537.98
5.48
47728.751529.0646199.695865.86
6.64
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Water ConsumptionIndicators
单位202220232024
Total Water Consumption
otal WaterConsumption Intensity
TonTon per ten thousandyuan of output value
187638
0.254
184155
0.222
213689
0.242
Megmeet is committed to promoting a clean and healthy life for all humanity by continuously improving the environmentand preventing pollution, with a focus on safe production and harmonious development in water resource management.The company adopts various measures to reduce water usage and waste, enhance water resource utilization e?ciency,and contribute to the protection of Earth's water resources.
Zhuozhou Electric's public buildings have adopted a large number of water-saving devices, such as sensor-based ?ushingdevices and foot-operated ?ushing devices in public areas. The dormitories within the campus are equipped with numer-ous water-saving ?xtures, which have proven to be highly e?ective. All ?xtures meet the Ministry of Housing andUrban-Rural Development's standard CJ/T164-2018 for water-saving sanitary appliances. The iKAHE Sanitary Wareproject's ?ushing water is recycled and not discharged. Ceramic cleaning wastewater and ultrasonic cleaning wastewaterare ?ltered through cloth and then enter a sedimentation pool, where they are treated and recycled without beingdischarged. Between 2022 and 2024, the following table summarizes the water consumption statistics for the MegmeetGroup, including Zhuozhou Electric, iKAHE Sanitary Ware, Megmeet Thailand, and Shenzhen Megmeet.
Water Resources Utilization
Megmeet's water source is entirely from municipal water supply, primarily for the operational base's domestic water use.Domestic wastewater is pre-treated in septic tanks within the factory to meet standards before being discharged into thelocal municipal sewage network. It is then further treated by the municipal sewage treatment plant before being releasedinto the natural environment. During the reporting period, the company did not experience any signi?cant direct or indirectimpacts on water resources due to changes in water extraction, consumption, discharge, or storage.Water Resource Management Objectives
Embrace green and low-car-
bon practices, and build aclean home together
Foster integration between theenterprise and green practices,ensuring development and ecology
coexist
Promote cleanliness forproduction and embrace green
for development.
Water Resource Management PolicyThe company implements the strictest water resource management system, rigorously controlswater pollution, adheres to a comprehensive water-saving policy, and prioritizes the protectionof the ecological environment.
Water Risk Assessment and Response Strategy
Water resource protection has become an important national strategyand policy direction. Against the backdrop of increasingly scarce waterresources, iKAHE Sanitary Ware, as a socially responsible enterprise,deeply integrates the concept of sustainable development into its corestrategy. It actively assumes its social responsibility for water conser-vation and environmental protection, and promotes the design ofeco-friendly products. Its innovative development of water-savingsanitary products has achieved signi?cant technical breakthroughs andwon the "Advanced Water-Saving Product Award" in industry evalua-tions, demonstrating the brand's leading advantages in the ?eld ofenvironmental protection.
The Megmeet Changsha Intelligent Industrial Center uses e?cient composite microbial degradation technology, combinedwith a gas puri?cation module, to successfully convert food waste from the cafeteria into fertilizer. The organic materialsrequired for production are processed through degradation and waste recycling, making a positive contribution toenvironmental protection and resource recycling. The optimized treatment technology (such as e?cient compositemicrobial degradation technology) helps reduce the amount of waste generated.
?Indicator2024?Goal Progress
Pollutant Emission Compliance RateEmployee Environmental Training Coverage Rate
Hazardous Waste Compliance Disposal Rate
Number of Environmental Incidents
100%100%100%
Achieved compliance for three consecutive years
Full coverage for all employeesFull coverage by quali?ed disposal companiesZero incident record maintained
Environmental Compliance ManagementE4
Emission, wastewater, and solid waste management:
Megmeet is directly led by the General Manager, who oversees major decisions regarding safety production, environmentalprotection, and occupational health and safety, ensuring the implementation of national laws and regulations. The Safetyand Environmental Protection (S&E) Department operates as an independent secondary department, responsible for theimplementation of the environmental management system, risk prevention, and daily supervision, with clear division ofresponsibilities at all levels. The company has developed an "Environmental Management Manual," which outlines goalmanagement, energy and resource management procedures, and supporting special systems such as the "EmergencyPreparedness and Response Management Procedure" and the "Emergency Response Plan for Environmental Incidents."?100% legally compliant disposal of pollutants, with regular monitoring of discharge data to ensure consistent compliancewith standards.?Hazardous waste (such as paint sludge, waste packaging barrels, etc.) is entrusted to quali?ed enterprises for compliantdisposal, with a dedicated hazardous waste warehouse set up and strictly managed.
The company conducts environmental internal audits annually to identify potential risk points and develop correctivemeasures, ensuring a closed-loop management process. Each year, a professional institution is hired to conduct an annualaudit of waste gas, wastewater, and solid waste treatment processes to ensure the e?ectiveness and compliance of themeasures.
Innovative Waste Disposal
3940
The company strictly abides by laws and regulations such as the "Water Pollution Prevention and Control Law of thePeople's Republic of China," the "Air Pollution Prevention and Control Law of the People's Republic of China," and the"Solid Waste Pollution Prevention and Control Law of the People's Republic of China," as well as national and industrystandards such as the "Environmental Noise Emission Standards for Industrial Enterprises (GB 12348-2008)" and otherapplicable regulations and standards. The company conducts environmental management to strictly control the generationand discharge of wastewater, exhaust gas, and noise during production operations, minimizing environmental impact.
E5Pollutant Emissions
During the reporting period, Megmeet ensured that all pollutant emissions from its operations strictly complied withnational environmental protection laws and regulations. During the period, the company did not receive any complaintsfrom employees or local community residents regarding adverse impacts. The company also did not face any majoradministrative penalties or criminal liabilities due to pollutant emissions. The company implemented a comprehensiveenvironmental monitoring plan to ensure that all emissions not only met but exceeded national standards. Additionally, thecompany has a well-established risk management system to e?ectively prevent environmental pollution incidents,safeguarding employee health and community welfare. This re?ects the company's strong commitment to environmentalprotection and social responsibility.
Pollutant Impact
Megmeet Environmental Management System Policy
To achieve a clean and healthy life for all mankind, we are continuously improving andpreventing pollution, while striving for safe production and harmonious development.
Environmental Audit Work
Environmental Management System
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The exhaust emissions generated by the company mainly consist of welding fumes,injection molding fumes, and crushing dust, with the main pollutants being tin and itscompounds, smoke, particulate matter, volatile organic compounds (VOCs), etc. Tostrengthen environmental management and improve the workshop working environment, wecollect and treat all exhaust gases before they are discharged. Welding fumes are absorbedby activated carbon and then extracted through a ventilation system and released at aheight of 15 meters. Organic waste gases from the injection molding workshop arecollected by a centralized exhaust system, with the collected gases being treated by “UVphotocatalysis + activated carbon adsorption” before being discharged through an exhauststack (15m) on the factory roof. Scrap and defective products generated during theinjection molding process are crushed and reused in production. The company has adedicated closed crushing workshop in the factory area, using environmentally friendlycrushing equipment for collection and reuse in production, with minimal dust emissionsreleased in an unorganized manner.
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ExhaustEmissions
The wastewater discharged is primarily domestic sewage, with the main pollutants beingchemical oxygen demand (COD), animal and vegetable oils, suspended solids, biochemicaloxygen demand (BOD), ammonia nitrogen, petroleum, and total phosphorus. Afterpre-treatment in the septic tank within the factory to meet the standards, it is dischargedinto the municipal sewage system.The company selects advanced, low-noise production equipment during the equipmentselection and procurement process to reduce noise generation at the source. Forhigh-noise equipment, soundproof rooms have been established, and the density ofequipment layout in the workshop is controlled within an appropriate range to minimize theimpact of noise on the working environment. For high-noise and vibrating equipment,measures such as vibration-proof foundations or shock-absorbing pads are implementedto reduce the impact of vibration on equipment and workers. Additionally, we strengthenthe maintenance of production equipment to ensure it operates smoothly and reduce noiseand vibration.
Wastewater
Discharge
Noise
Case 1: iKAHE Sanitary WareWastewaterDomestic sewage is pretreated to meet the tertiary standard of GB8978-1996 "ComprehensiveSewage Discharge Standard" (with ammonia nitrogen and total phosphorus discharge standardsreferring to the "Indirect Discharge Limits for Nitrogen and Phosphorus Pollutants from IndustrialEnterprise Wastewater" (DB33/887-2013)). It is then discharged into the municipal sewage networkand ultimately treated by Taizhou Water Treatment Development Co., Ltd. to meet the dischargestandards.
NoiseAdheres to the category 2 standard of GB12348-2008 "Environmental Noise Emission Standards forIndustrial Enterprises at Boundary".
Waste GasThe concentration of total suspended particulates is subject to the non-organized dischargestandard in Table 2 of the "Comprehensive Air Pollutant Discharge Standard" (GB16297-1996).
Case 2: Zhuzhou ElectricWastewaterWastewater includes workshop ?oor cleaning wastewater, canteen wastewater, and domesticsewage. The discharge outlet complies with the indirect discharge limits speci?ed in GB39731-2020 Discharge Standard of Water Pollutants for Electronic Industry.NoiseThe southern boundary of the Taishan Road plant area adopts the Class 2 standard limitsspeci?ed in Table 1 of GB12348-2008 Emission Standard for Industrial Enterprises Noise atBoundary. The western boundary of the Taishan Road plant area adopts the Class 3 standardlimits from the same table.
Exhaust GasWelding fume is collected by a fume hood and treated via a fume extraction and ?ltration dustcollector before being discharged at high altitude. The emission complies with the Class 2standard limits speci?ed in Table 2 of GB 16297-1996 Comprehensive Emission Standard ofAir Pollutants. The concentration of total suspended particulates complies with the fugitiveemission limits speci?ed in Table 2 of the same standard.
Pollutant Treatment
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E6Waste Management
Megmeet strictly adheres to the principles of "reduction, resource utilization, and harmlesstreatment," promoting full-process management of waste. The company explicitly requireseach factory to ensure that 100% of the waste in all factory areas is disposed of legally andin compliance with regulations, and that 100% of hazardous waste is handled by quali?edenterprises.
Waste Management
Policy andObjectives
The company has formulated and implemented the Waste Management Measures andHazardous Goods Management Measures, which clearly de?ne classi?cation standards,disposal procedures, and responsibilities. Each factory has established a dedicated storagearea for hazardous waste, with classi?ed storage by zone. All factories maintain hazardouswaste management records to ensure full-process traceability.
Policies andResponsibilityFramework
Waste Classi?cation
and Disposal
Practices
?Recyclable general waste, such as plastics, packaging cartons, and household waste, is
collected and recycled by certi?ed renewable resource companies.?Non-recyclable general waste, such as o?ce waste and kitchen waste, is collected and
transported by the sanitation department.?Hazardous waste, including paint residue, used rags and gloves, and discarded packaging
barrels, is disposed of in compliance with regulations through certi?ed contractors, with
hazardous waste transfer manifests signed.?Each factory has set up a dedicated hazardous waste warehouse for temporary storage,
equipped with anti-leakage and anti-dispersion facilities. Regular inspections of the
storage environment are conducted to prevent leakage and cross-contamination.?The company has formulated an Emergency Response Plan for Environmental Incidents
and conducts targeted drills for emergency response to hazardous waste leakage
scenarios.
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E8Ecosystem and Biodiversity Conservation
The company continues to focus on the impact of its activities on ecosystems and biodiversity, strictly adhering to relevantlaws and regulations such as the "Environmental Protection Law of the People's Republic of China," the "Soil PollutionPrevention and Control Law of the People's Republic of China," and the "Opinions on Further Strengthening BiodiversityProtection" issued by the General O?ce of the CPC Central Committee and the State Council. The company's currentproduction and operational sites are not located in key ecological functional areas, marine areas, or ecological protectionred lines. During the site selection process for new projects, ecological impact is considered to mitigate risks and identifypotential hazards in advance. As of the end of the reporting period, no signi?cant adverse impacts on biodiversity havebeen identi?ed from the company's production activities, products, or services.
?Actively selects recyclable and biodegradable packaging materials, such as cardboard and bioplastics, toreduce environmental impact.?Optimizes packaging designs to reduce the use of unnecessary materials. The compact packaging designe?ectively minimizes space waste.?For certain products or components, the company has designed reusable packaging solutions, such as
reusable plastic boxes or pallets, allowing for multiple uses in transportation and storage, thus reducingpackaging material consumption and waste generation.?The company has established corresponding recycling systems and processes, collaborating with customers
to promote packaging recycling and reduce environmental impact.
Megmeet recycles recyclable materials (such as cardboard and plastic) through a recycling company to increase therecycling rate, while non-recyclable materials (such as kitchen waste) are safely disposed of by sanitation departments.
In the MRF280-TCU project, the company combines thermoformed pallets (bamboo powder) and pulp molding design,introducing paper boxes to replace traditional plastic packaging structures, achieving plastic-free packaging. At the sametime, low-density weight-reduction technology is used to further reduce packaging weight, decrease energy consumption,and minimize material waste.
MRF280-TCU Project：
The research center uses e?cient composite microbial degradation technology to convert 100% of cafeteria waste intoorganic fertilizer, achieving resource utilization of organic waste. The process meets the "three-zero standard" (zeroemissions, zero pollution, zero secondary pollution).Megmeet Changsha Smart Industrial Center Zero-Carbon Demonstration:
The company implements a series of recycling measures:
Recycling Economy Related IndicatorsMegmeet 2024 Data? Management E?ectivenessPackaging Labeling Compliance with Domestic andInternational Regulations (e.g., Plastic Ban,
EU Packaging Directive)Recycled Packaging Usage Rate
100%75%
No violations for three consecutive years
Industry-leading level
Resource Recycling Practices
E7Circular Economy
Megmeet adheres to the core values of "green, environmental protection, and sustainable development" and upholds theprinciples of "reduction, resource utilization, and harmlessness" to promote e?cient resource utilization and recyclingthroughout the entire product lifecycle. The company has established a Green Packaging Committee to coordinatecross-functional e?orts (R&D, production, procurement, and marketing), formulate the Green Packaging Design Guidelines,and oversee the implementation and performance evaluation of these standards. In alignment with environmental protec-tion concepts, Megmeet has also set up a dedicated department responsible for the timely recovery and reuse of recycla-ble components and materials.
IndicatorUnitMegmeet 2024 DataGeneral Solid Waste
Hazardous WasteCompliance Disposal Rate of Hazardous WasteThird-Party Compliance Audit Pass Rate of Hazardous Waste
TonTonPercentagePercentage
2177.71
4.11
100%100%
Circular Economy Governance and Strategy
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Trust and Win-WinMegmeet follows the principle of "Technology for Good, Responsibility Coexis-tence," integrating social responsibility throughout the entire value chain of researchand development, production, and services. In the ?eld of scienti?c and technologi-cal innovation, the company focuses on breakthroughs in low-carbon technologies,integrates green and sustainable management into the supply chain, and promotesgreen innovation and sustainable development in the electrical industry throughindustry collaboration and partnerships with universities and research institutions.
S1 Innovation DrivenS2 Product Quality and SafetyS3 Customer Service ManagementS4 Data and Information SecurityS5 Supply Chain SecurityS6 Industry Cooperation and Development
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S1Innovation-driven
Innovation is the core engine of Megmeet's sustainable development. The company will continue to deepen its "Technology+ Market" dual-drive strategy, increase investment in cutting-edge ?elds such as AI and energy storage, with the goal ofachieving a research and development expenditure ratio exceeding 12% by 2025. It will strengthen cooperation with globalresearch institutions, accelerate globalization, promote the internationalization of green technology standards, and upholdthe mission of "Smart Manufacturing for a Green Future" to support the achievement of carbon neutrality goals, driving thesustainable development of the industry through innovation.
Achieve breakthroughs in coretechnologies, launch 1-2 innovativeproducts, and digitize part of thebusiness processes.
?Ensure that annual R&D investment accounts formore than 10% of operating revenue.?Number of newly ?led patent applications: 130.?Number of core technology breakthroughs (e.g., 1–2
per year).
?Number of newly launched products: 23.?Market share of new products: 5%.?Customer satisfaction rate: over 90%.
?Annual reduction in carbon emissions: 5%.?Proportion of green products: over 30%.?Increase in resource utilization e?ciency: over 20%.
Establish a leading technologicalposition in the industry, launch3-5 market-competitiveproducts, and achieve full digitaltransformation.
Become a leader in settingindustry technological standards,continuously launch innovativeproducts, and achieve sustainabledevelopment goals.
As a global leader in power electronics and industrial automation solutions, the company has always regarded innovation asthe core strategy for its development. Guided by laws and regulations such as the "Science and Technology Progress Lawof the People's Republic of China" and the "Patent Law of the People's Republic of China," and based on national standards,industry standards, and customer needs, the company focuses on key areas such as digital transformation, green technology,and arti?cial intelligence. It builds a comprehensive innovation system covering technology research and development,product innovation, and management optimization.Strategic Directions
Technology Innovation Strategy
Science and Technology Innovation Goals and Indicators
4748
Continuously invest in cutting-edge ?elds such as digital transformation, green technology, and arti?cial intelli-gence, and drive breakthroughs in core businesses such as power supply technology, electric vehicle control, andindustrial automation.Focus on Core Area
Strengthen cooperation with universities and research institutions, establish joint laboratories or innovationplatforms, and promote the transformation of technological achievements.Enhance Industry-Academia-Research Collaboration
Establish and implement systems such as the "Design and Development Management Procedure," "ProjectDevelopment Review Standards," "Research and Development Management System," and "Research and Devel-opment Operational Standards," incorporating national standards, industry standards, and customer requirementsthroughout the entire R&D lifecycle to ensure product quality across its entire lifecycle.Establish and implement systems such as the "Megmeet R&D Department Performance Appraisal System" and"Scienti?c and Technological Achievements Transformation Organization and Incentive Reward System" tostimulate the vitality of the R&D team.
R&D Process Management
Establish research and development centers in Germany to attract top global talent.International Expansion
System Assurance
Process ControlTo enhance product R&D and innovation capabilities, the company divides the new product development projectcycle into ?ve stages: concept phase, planning and design, development phase, pilot phase, and mass productionphase. During the new product development process, the company is customer-demand driven, developing detailedR&D plans for the products. From the design stage, the entire product lifecycle, related process quality, and servicequality are considered to ensure high-quality new products for customers.
Innovation Incentive Mechanism
Short-term goals
（1-2years）
Medium-term goals
（3-5years）
Long-term goals
(5+years)
Megmeet's Science and Technology Innovation Goals
Megmeet's Science and Technology Innovation IndicatorsTechnology R&D IndicatorsProduct Innovation Indicators
?Digital coverage rate of business processes: over
80%.?Improvement rate in operational e?ciency: 20%.?Proportion of data-driven decision-making: over 70%.
Digital Transformation IndicatorsSustainability Indicators
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Raise funds through equity ?nancing by issuing new shares or introducing strategic investors;raise long-term funds through debt ?nancing such as issuing corporate bonds or obtainingbank loans; actively apply for national and local government subsidies or special researchfunds to secure external support for R&D expenditure.External Financing
Collaborate with universities and research institutions to share R&D resources and reducecosts; or form joint ventures with leading industry enterprises to jointly develop new technol-ogies and products.Cooperation andJoint Ventures
Utilize the company’s own capital to ensure continuous investment in R&D and innovationprojects. Improve operational e?ciency, reduce costs, and increase cash ?ow.
Internal Funding
Megmeet e?ectively promotes technological innovation and achieves sustainable develop-ment through the above strategies, goals, indicators, funding arrangements, and guaranteemeasures, maintaining a competitive advantage in the industry.
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Funding Arrangement
Functional and PerformanceTesting LaboratoryEstablish a risk assessment mechanism to identify and evaluate the risks of technologicalinnovation projects; develop contingency plans to ensure timely action can be taken whenrisks occur.Risk Management
Establish a performance evaluation system for technological innovation projects, regularlyassess the progress and outcomes of projects; adjust funding allocation based on evaluationresults to maximize the e?ectiveness of fund investment.
Performance
Evaluation
Policy Support
Closely monitor national and local policies on technological innovation, apply for relevantpolicy and funding support in a timely manner; maintain good communication with govern-ment departments to secure more policy support and resource advantages.
Develop a detailed ?nancial budget to ensure the rationality and e?ectiveness of fund utiliza-tion; conduct regular ?nancial audits to ensure transparency and compliance in the use offunds.
Financial PlanningFunding Guarantee Measures
To ensure the smooth implementation of technological innovation, the company has adopted a series of support measures,including the establishment of a dedicated innovation fund. This fund is used to support key areas such as technologicalR&D, product innovation, and digital transformation. It aims to optimize resource allocation and ensure that funding needsfor various innovation activities are met, thereby driving the company’s continuous innovation and development.
Innovation Funding Assurance
In 2024, Megmeet's research and development investment accounted for 12.04% of the company's total revenue. The invest-ment was primarily focused on core technology breakthroughs in areas such as LED displays, server power supplies, andelectric vehicle electric control systems. A signi?cant amount of funds were also allocated to upgrading the simulation testingdigital system, which greatly shortened the product development cycle.The company implements a talent recruitment system to attract a large number of R&D professionals, obtaining recognitionfor 15 high-level talents at the provincial and municipal levels, and 17 talents under district-level and other talent programs.During the 2024 reporting period, the company's R&D team size reached over 2,800 people, with R&D sta? accounting for36% of the total workforce.
Research and Development Resource Investment
Megmeet has world-class laboratory R&D equipment, creating standardized, professional, automated, and intelligent testingplatforms that e?ectively ensure the accuracy and stability of test results. The company uses top-tier equipment brands suchas R&S, SCHWARZBECK, AMETEK, Tektronix, Keysight, and YOKOGAWA to build high-standard laboratories, includingthose for sanitary ware, electromagnetic compatibility (EMC), and battery life testing. The group company and iKAHESanitary Ware have both received CNAS laboratory, TUV Rheinland laboratory, and UL laboratory accreditation certi?cates,supporting high-precision technology validation. Additionally, the company has established the "Smart Energy Carbon DualControl Cloud Platform" to achieve digital management throughout the entire R&D process.
Electrical and ElectronicPerformance Testing
RE Lab (10M, 3M*2)
Electric Motorcycle Hub TestingCE Lab*2Climate Environment
and Reliability Lab
Burn-in Lab
High-speed Bench TestingSurge TestingThree Comprehensive
Test Bench Testing
Enthalpy Testing
Temperature and HumidityEnvironmental Testing
Semi-anechoic Testing
R&D Facilities
Indicator202220232024R&D Investment as a Percentageof Main Business Revenue (%)R&D Personnel as a Percentage
of Total Employees (%)
11.09%
34%
11.55%
34%
12.04%
36%
EMCTesting Laboratory
Environmental and ReliabilityTesting Laboratory
Other Specialized Laboratory
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CNASNo. CNAS L17539
CNAS
No. CNAS L13040
ISO26262
TUVULUL-WTDP
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Megmeet's laboratory testing capabilities and management system have been recognized by authoritative institutions,holding quali?cations such as CNAS, TUV, UL-CTF, and UL-WTDP. The test results are globally recognized.
Technological Innovation Achievements and ImpactTechnological BreakthroughsOver the years, the company has received 15 awards related to technological innovation, including First, Second, and ThirdPrizes for Provincial Scienti?c and Technological Progress, the Excellent Award in the Provincial Industrial Design Competi-tion, the Annual Outstanding Project Award, the Government Quality Award, among others. As of February 15, 2025, thecompany holds a total of 249 valid invention patents. Megmeet has achieved core technological breakthroughs in key areassuch as LED displays, server power supplies, and electric vehicle control systems. As of February 15, 2025, the company hadbeen granted 25 invention patents applied for in 2024 alone.
This patent describes a control circuit that adjusts DC output based on the rise and fall of AC signals, using an isolationtransformer to regulate the current in a resonant circuit, thereby achieving zero-voltage switching and high-e?ciencyoperation across the full frequency range. This signi?cantly reduces energy loss and noise, expands the maximum gainrange, and enhances overall system e?ciency and power density, making it suitable for widespread application. It alsoprovides a standardized reference for the industry and promotes the development of power supply technology towardhigher frequency, greater energy e?ciency, and increased intelligence.
Server Power Supply Field
Patent: "Power Supply Circuit, Power Control Method, Composite Power Supply Circuit, and Electronic Device"(CN118399786B).
This patent introduces a method of detecting the AC output of the power supply to control a power factor correction(PFC) module, which outputs a preset voltage. The voltage is then processed by a resonant module to deliver the targetpower. During low-voltage input conditions, a boost operation is performed to improve power output e?ciency, reducecomponent heat generation, and enhance the reliability of the power supply and the performance of the LED display. Thetechnology has been widely applied and currently provides high-quality services to leading and key clients in the displaypower supply industry.
Patent: "A Power Processing Circuit and LED System" (CN222169621U).
LED Display Power Supply Field
This patent presents the design of an expansion card featuring a ?rst connection terminal, a second connection terminal,and two independent isolation circuits—a ?rst isolation circuit for power signal conversion and a second isolation circuitfor the transmission of control and feedback signals, ensuring real-time signal transmission. By directly connecting to theinverter’s microcontroller unit (MCU), the expansion card enhances the real-time reception of signals, thereby improvingthe safety and reliability of the inverter system. It enables rapid response to external device inputs and signi?cantlyenhances control performance.
Patent: "An Expansion Card and Inverter System" (CN118074488B).Industrial Automation Field
Megmeet’s commercial display power supply products were awarded the title of National ManufacturingSingle Champion in 2024. The global market share of commercial display power supplies has exceeded30% for three consecutive years, ranking ?rst in the global segmented market. The company has built astrong foundation in the network power supply industry. Through continuous and intensive R&D investmentin the network power business, Megmeet has received multiple project demands and orders from leadingdomestic and international clients in recent years, and has gradually emerged in the global server industry.The company has become one of the few comprehensive power supply providers capable of high-power,high-e?ciency server power technologies and full-process overseas production and supply. Megmeet’s arcwelding robot power supplies have ranked ?rst in domestic sales for nine consecutive years, with annualshipments exceeding 10,000 units and a market share of nearly 30% in the Chinese market. The company'sproducts have received international certi?cations such as UL and T?V Rheinland and have enteredhigh-end markets in Europe and North America.
New QualityProductivityPromotion
Impact of Technological Innovation
MarketExpansionand CustomerRecognition
The company’s numerous patented technologies have driven technological upgrades in ?elds such aspower supplies, electric vehicles, LED displays, and industrial automation, speci?cally re?ected in thefollowing:
?Innovations in power supply technology have laid the foundation for the development of smart devices.?Optimization of electric vehicle control devices has enhanced the performance and market competitive-
ness of new energy vehicles.?Advances in intelligence and automation technology have accelerated the transformation of traditional
manufacturing industries towards intelligent and automated systems.?Technological innovations in the industrial automation ?eld have helped manufacturing clients achieve
more e?cient production processes, improving overall productivity.
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Megmeet’s quality management framework is guided by the principle of achieving "doing it right the ?rst time" and continu-ously improving toward the ultimate goal of "zero defects." The company, based on international quality managementstandards, is committed to establishing a quality management system that covers the entire product lifecycle, ensuring thateach stage—from design, development, inspection, delivery, to after-sales service—meets high-quality standards. At thesame time, the company has set strict quality speci?cations during the R&D and manufacturing processes to standardizequality management in production. Megmeet places a strong emphasis on supplier quality management, ensuring that everylink in the supply chain meets quality standards. In terms of service, the company is dedicated to providing high-qualityafter-sales service to ensure customer satisfaction and brand reputation. To support the implementation of the qualitymanagement system, Megmeet has developed an information platform. The platform is based on the PLM (Product LifecycleManagement) system platform for R&D product data and project management, the ERP (Enterprise Resource Planning)system platform for enterprise resources and ?nished product management, and the MES (Manufacturing Execution System)platform for production processes and warehouse logistics management. The collaborative use of these three systems helpsthe company better achieve the "zero defects mindset + informatization and automation" quality management philosophy.
Implementation Path
To achieve the zero-defects goal, the zero-defect quality management philosophy must beimplemented proactively, with full participation from all employees, and it should be integratedthroughout the entire product lifecycle.
Quality Management Strategy
S2Product Quality and Safety
Zero DefectLEAN Production + Process Automation
ISO13485IATF16949ISO26262QC080000YISO9001
ConceptFormation
ProductDevelopment
ProcessDevelopment
MassProduction
After SalesServiceVeri?cation
R&DQuality
Supply ChainQuality
ManufacturingQuality
ServiceQuality
EnterpriseResource Planning
ManufacturingExecution SystemProduct LifecycleManagement
R&D Quality
?Standardized R&D Process (IPD, phase review deliverables), IT-enabled (PMS), ensuring e?cientand standardized execution.?Leading R&D Validation Capability compared to peers (based on international, national, and industryrequirements, while also benchmarking hardware and personnel con?gurations of competitors),ensuring that the output characteristics of the developed products meet the R&D requirements.?Early Involvement of Manufacturing Personnel to ensure early identi?cation and avoidance of issues,
reducing subsequent handling costs (Design for Manufacturability (DFM), Design for Testability(DFT), Design for Reliability (DFR), and other DFX design activities).Supply Chain Quality
?Strict supplier quali?cation for both entry and exit;?Ensure standardized introduction and e?ective management of suppliers;?Standardize component selection and veri?cation with scienti?c protocols;?Provide quality assistance and technical support to core and potential suppliers.
Process Quality
?Improve and continuously optimize the MES system, using IT methods for error-proo?ng andmistake-proo?ng;?Automate key processes;?Stabilize grassroots management personnel and continuously enhance their capabilities through
training;?Enhance product quality engineering capabilities; Use and promotion of advanced quality tools
Standardization of abnormal handling and analysis?Improve failure analysis capabilities for quality issues.Customer Service & After-Sales Quality
?Standardize and improve the customer service process and outputs;?Standardize the after-sales quality service process and outputs, enhance the capabilities of
after-sales personnel, improve e?ciency, and create value.
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Total Quality Management System
Do it right the ?rst time + continuous improvement
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Megmeet strictly adheres to domestic and international product quality and safety laws and standards, including theProduct Quality Law of the People’s Republic of China, Standardization Law of the People’s Republic of China, ISO9001(General), ISO13485 (Medical), IATF16949 (Automotive), and GB 4943.1, GB/T 9254, GB15579, IEC 60601-1, GB31241,GB4706, GB/T 18387, GB/T 18487, IEC 61215-2 IPC600, IPC610, IPC620, among others. The company has establishedand implemented a series of quality management system documents, including the Management System Manual, MedicalManagement System Manual, Functional Safety Management Manual, Record Control Procedure, Internal Audit ControlProcedure, Management Review Control Procedure, Equipment Control Procedure, Emergency Preparedness andResponse Control Procedure, Human Resources Control Procedure, Contract Review Control Procedure, CustomerSatisfaction Control Procedure, Nonconforming Product Control Procedure, Corrective and Preventive Action ControlProcedure, Identi?cation and Traceability Control Procedure, Compliance Evaluation Procedure, Monitoring and MeasuringEquipment Control Procedure, Customer Feedback Control Procedure, Design and Development Control Procedure,After-Sales Service Control Procedure, Procurement Control Procedure, Production Service Control Procedure, IncomingInspection Work Standard, Process Inspection Work Standard, and Finished Product Inspection Work Standard. Thesedocuments form the foundation for the establishment, implementation, and certi?cation of the quality management system.The company places a high emphasis on quality management and consistently adheres to the "zero defects" qualitymanagement strategy. It strictly follows the ISO9000 quality management standard and has established, implemented, andcerti?ed several industry-speci?c and special requirements-based quality management systems, including the ISO13485medical device quality management system and the IATF16949 automotive industry quality management system. Thecompany not only strengthens quality control during product design, production, and delivery but also focuses on qualitymanagement throughout the entire product lifecycle to ensure the delivery of high-quality and reliable products tocustomers.In 2024, the company further expanded the scope of product quality certi?cations. By strengthening the quality certi?ca-tion of the company’s management systems and products, the company ensures the quality and reliability of its products,providing customers with higher-quality and more trustworthy products.
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Product safety and reliability are key characteristics of quality, and the core of quality lies in ensuring high reliability. "Zerodefects" is a powerful support for high reliability. Megmeet focuses on product reliability risk management and datamanagement throughout the entire product development and mass production processes, ensuring the safety and reliabilityof products throughout their lifecycle, and providing customers with more trustworthy products and services.The company continuously takes various actions to ensure the safety and reliability of its products:
① Risk Prevention and Control: The company assesses risks associated with the introduction of new technologies, new
product platforms, new components, and new types of products. It identi?es safety and reliability risks during theintroduction of new technologies and develops solutions.
② Tool Optimization: The company develops and optimizes testing methods related to product safety and reliability
throughout the entire product lifecycle, identi?es key issues, supports e?ective detection of characteristics during theincoming materials and process stages, and promotes the quanti?cation and identi?cation of reliability risks.
③ Capacity Expansion: The company expands and builds new production bases, increases production scale, and
signi?cantly enhances production capacity.
④ Manufacturing Automation: The company has established an intelligent automation department that uses intelligent
equipment to support automation and environmental sustainability across the entire manufacturing process, reducing theimpact of process ?uctuations on product quality and improving product safety and reliability.
To ensure automation in the smart manufacturing production process, the company has con?gured SMT (Surface MountTechnology) equipment, directly purchasing standard equipment such as material box-type board machines, QR code laserengraving machines, placement machines, and nitrogen generators. Additionally, the company has con?gured PA (ProcessAutomation) equipment, utilizing existing resources and R&D capabilities to manufacture non-standard equipment such asautomatic insertion machines, automatic coating machines, automatic adhesive dispensing machines, and automatic screwmachines.
Quality Management SystemProduct Safety and Reliability Management
InformationManagement
GreenFactory
AutomatedFactory
Warehousingand Logistics
Information Automation
Production Automation
Warehouse Logistics Automation
Green Factory
SmartManufacturing
Product design meets domestic and internationalproduct certi?cations such as CCC, UL, CSA, TUV, etc.
ISO 9001 Quality
QC080000 HazardousSubstance Managemen
ISO 13849 Functional SafetyElectric Drive for Constructio
Machinery
ISO 14001Environment
ISO 45001OccupationalHealth and Safety
ISO 13485Medical
IATF 16949Automotive
ISO 26262 AutomotiveFunctional Safety ASIL-D
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⑤ IImplementing Lean Production: By implementing lean production within the company, product quality has been improved,
production e?ciency has been increased, production costs have been reduced, customer satisfaction has been enhanced, andsupply chain management has been optimized.
SMT Equipment Con?guration (Standard Equipment)
PA Equipment Con?guration (Non-Standard Equipment)
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Smart BidetProduction Line
Sheet MetaProduction Line
Fully AutomatedMagnetics Production Line
Electric Automated
Production Line
New Energy
Production Line
SMT Production Line
Box-typeBoard Feeder
QR Code LaserEngraving Machine
Solder Paste PrintingSolder Paste Printing
Inspection: SPl
Pick andPlace Machine
Surface Mount Machine
Pre-Re?ow: Optical Inspection AOINitrogen Generator12-Zone NitrogenRe?ow SolderingPost-Re?ow: OpticalInspection AOIBox-typeBoard Stacker
Automatic InsertionMachine AI
Through-hole OpticalInspection AOI
Wave Soldering (Nitrogen)Soldering Optical
Inspection AOI
Fully AutomatedTesting (ICT & FFT)
AutomaticCoating Machine
Thermal GreaseBrushing MachineAutomaticScrewdriver MachineAutomaticDispensing MachineAutomatic GlueDispensing MachineInitial FunctionTesting & Aging & Re-testing
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The Megmeet Changsha Intelligent Industry Center began planning and construction in 2016, with o?cial constructionstarting in 2021. After two years of design and engineering, it was completed and put into use in early 2024. The total areacovers 15,000 square meters, with a total building area of 75,000 square meters. It is equipped with the most comprehen-sive and advanced testing equipment in the global power electronics ?eld, including 48 laboratories and over 120 sets oflaboratory equipment, capable of accommodating more than 2,000 R&D engineers. It is considered a world-class testinglaboratory.The company implements strict control in the material and product inspection stages, using preventive testing to addresspotential product quality issues at each stage, ensuring product quality. For new or potential quality issues, the companyprioritizes preventive testing solutions such as mistake-proo?ng, error prevention, and equipment automation to improveproduct quality and production e?ciency.To ensure that product quality meets standards, the company has established a series of strict management documents,including the "Non-Conforming Product Control Procedure," "Corrective and Preventive Control Procedure," "Identi?cationand Traceability Control Procedure," "Monitoring and Measurement Device Control Procedure," "Incoming MaterialInspection Operating Speci?cations," "Process Inspection Operating Speci?cations," "Finished Product Inspection Operat-ing Speci?cations," and the "Product Type Testing Management Measures." These management procedures specify theinspection standards, processes, and responsibilities, ensuring e?ective quality control and testing at every productionstage, and timely management and disposal of non-conforming products. Speci?cally, this is divided into the followingthree major stages:
⑥ Product Testing Management: The company has established a testing center and set up product lifecycle testing laboratories
for EMC, reliability, lifespan, safety regulations, and failure analysis, comprehensively enhancing the safety and reliability of itsproducts.
Incoming Material Inspection
The company rigorously controls the inspection of incoming material quality, using the IQC (Incom-ing Quality Control) capability matrix to analyze supplier material quality. Inspectors strictly followthe requirements outlined in the quality management system documents to ensure that the materialsused in production meet the required standards. Inspectors generally provide inspection resultswithin two working days, while in urgent cases, results must be provided within two hours. Weprioritize the quality of each batch of materials and ensure that every inspection is conductedstrictly according to the speci?ed procedures to guarantee product quality and reliability.
Material Inspection and Sampling
First-piece inspection is a crucial part of the company's quality control process. The company'sinspection department performs ?rst-piece inspections according to the SOP for ?rst-pieceinspection. If the ?rst-piece inspection results meet the company's product technical speci?cations,quality standards, and other relevant requirements, only then can mass production proceed. Thecompany has clari?ed the responsibilities and authorities for line inspection and standardized therelevant operational procedures. During process inspections, inspectors strictly follow the overallQCP (Quality Control Plan) engineering forms and SOP requirements. The inspection results aredetailed in the MES system's "IPQC Inspection Record" for timely tracking and analysis. In the eventof abnormalities, production personnel are immediately noti?ed for resolution. If the productiondepartment is unable to resolve the issue, the technical, quality, equipment, and other relevantdepartments must be contacted to discuss and implement a solution to eliminate the abnormality,restore normal production, and prevent recurrence. If necessary, the quality department may requestthe production department to halt the line to address the issue, ensuring product safety and quality.
Finished Product Inspection
Before products are stored in the warehouse, inspectors carry out sampling inspections based onthe "Finished Product Inspection Speci?cations," artwork ?les, and customer-approved samples toensure the quality of shipped products. The manufacturing center promptly sends each batch ofproducts that pass the production line inspection for further testing. FQC (Final Quality Control)inspectors conduct random sampling inspections on each batch of products. Only products thatpass the inspection are allowed to enter the warehouse.
On the PCBA board, a QR code is attached for e?ective traceability via MES. Comprehensive checks areperformed on the printing process to ensure the printing meets relevant technical requirements and standards.Next, the board components are inspected for missing, incorrect, or reversed components using pre-re?ow AOI(Automated Optical Inspection) equipment. FAI (First Article Inspection) equipment is used to calculate the quantityof various components based on the BOM (Bill of Materials) and record the ?rst-piece inspection results,e?ectively preventing errors, omissions, and reversals of components. The products are then subjected tohigh-quality soldering in a vacuum re?ow oven to reduce the rate of solder voids. Afterward, post-re?ow AOIequipment inspects the soldering quality on the pins to determine the yield rate. Finally, X-Ray inspection is usedto detect voids in the MOSFET solder joints.
Case 1: PCBA Process Quality Control:
Mechanical Reliability LabChangsha Global R&D CenterHigh-speed Bench TestingHighly Accelerated Life Test Lab
Total testing area15000square meters
No. of labs
No. of lab devices120+
PCBA QRCode Binding
Solder PastePrinting InspectionEquipment
Pre-Re?ow AOIInspectionEquipment
Post-Re?owAOI InspectionEquipment
X-RAYFAI FirstArticle InspectionEquipment
FAI FirstArticle Record
VacuumRe?ow Oven
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Megmeet has established the "Nonconforming Product Control Procedure" to standardize the management of noncon-forming products from both business process and on-site process dimensions, forming a closed-loop operation ofidenti?cation, marking, isolation, review, disposal, and improvement. Each process step is assigned to a responsibledepartment to ensure strict quality control. Nonconforming products at di?erent stages are handled with di?erent disposalmethods.
In 2024, the company regularly conducted assessments and analyses of product quality and safety risks and opportunities.A total of six high-risk items were identi?ed, and corresponding countermeasures were implemented for each. Evaluationresults con?rmed the e?ectiveness of these measures. The audits conducted included: supplier quali?cation audits, annualsurveillance audits, special audits, and safety regulation audits. In total, 329 audit sessions were carried out, with all issuesaddressed and recognized by customers and certi?cation bodies. Continuous improvement projects are also beingimplemented and followed up. In 2024, the company did not experience any major safety or quality liability incidents, norwere there any administrative penalties or major customer complaints due to product safety or quality issues.
If they do not a?ect the production schedule, the procurement department contacts thesupplier for return/replacement; if they may a?ect the production schedule, the procure-ment, quality, planning, and production departments hold an MRB (Material Review Board)meeting to discuss and determine a solution to ensure uninterrupted production.
reworked or repaired by the production department, then re-inspected by the qualitydepartment. Only after passing the inspection can they be put into storage.reworked or repaired by the production department, then re-inspected by the qualitydepartment. Only after passing the inspection can they proceed to the next process; thosethat cannot be repaired shall follow the scrapping process.
Nonconforming?nished products
Nonconforming Product Management Closed Loop
Safety and Quality Risk Assessment
Corporate Quality Culture
Megmeet attaches great importance to cultivating employees' quality awareness, actively building a quality culture, andstrives to eliminate product safety and quality risks at the early stages.The company prioritizes technology and quality, establishing a Quality Committee and an independent quality managementdepartment dedicated to ensuring the quality of products and services. Currently, the company employs over 500 qualitysta?, more than 70% of whom have many years of experience in quality or related industries. Some sta? members havealso worked in large domestic and international enterprises, bringing rich practical experience and professional knowledge,which provides strong support and assurance for the company's quality management.The company actively promotes a culture of quality among all employees, establishing quality assessment standards toevaluate employee levels and standardize training and assessment criteria. Product quality and safety training have beenconducted, covering past quality and safety incidents, customer product complaints, and typical case studies. Based onthis, quality improvement activities are implemented. As a result, employees' professional skills and quality awarenesscontinue to improve.
Quality Culture Development
?Signage Standardization?Uni?ed visual management of the shop ?oor
dashboards has been completed, with installationon the second and third ?oors of Building A.
QCC Special Activities
Continuously organize and carry out 'QCC Project Improvement' activities focused on e?ciency and quality enhancement. Tworounds of QCC activities were conducted, with 18 projects initiated, 12 completed, and 3 projects and teams awarded.
Quality Month Activities
The Quality Month activities, themed ‘Learn Standards,Speak Standards, Follow Standards,’ aim to promotequality awareness among all employees.
Automated thermal paste coating equipment is used to improve the coating e?ciency and consistency of the
coating quality. The entire production process is managed and traced through the MES system, including opera-
tion records and torque point records. The insulation impedance performance of the product is tested using a
high-voltage testing device. Next, the product’s performance is checked through pre-aging testing equipment by
applying power. During the full machine high-temperature aging test, the stability and reliability of the electronic
product are evaluated. The product is then subjected to a full-load test to check voltage, current, temperature,
and other key indicators. Finally, the product’s performance and reliability are tested in a high and low-tempera-
ture shock chamber to simulate extreme temperature conditions.
Case 2: Key Quality Control Points:
Nonconformingsemi-?nishedproducts(in-process products)
Nonconforming
raw materials
Thermal GreaseAutomatic Coating
Equipment
MES SystemWorkstationProcess Record
Torque PointInspection Record
Full Machine
Load Test
TemperatureShock ChamberDielectric StrengthTesting Equipment
Pre-Aging
TestingEquipment
Full MachineHigh-Temperature
Aging Test
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Megmeet is customer-centric, continuously strengthening pre-sales, in-sales, and after-sales services to build ahigh-quality customer service system. The company has formulated and implemented documents such as the "CustomerService Center Performance Evaluation and Incentive System" and "After-Sales Service Control Procedure" to improvecustomer service management and enhance the response speed to customer demands.
Establishment of global customer service centers (Shenzhen, Munich, Bangkok) to support services in Chinese, English,German, and Thai, handling 32,000 inquiries annually.Establishment of 10 regional service centers in North China, East China, South China, etc., with dedicated technical teamsproviding localized technical support.Launch of the "Megmeet Service" WeChat Mini Program, o?ering online fault diagnosis, video guidance, and other smartservices, signi?cantly increasing the self-service resolution rate for customers.
After-Sales Service
Data Security Management System
The company has established and implemented documents such as the "Customer Complaint Handling Guidelines" toactively address customer complaints and protect customer rights. We communicate with customers in a timely mannerthrough various channels, including the o?cial website, 400 customer service hotline, online platforms, emails, andface-to-face meetings, to handle customer inquiries and complaints.We have established a customer complaint improvement team, with members selected based on the characteristics of thecomplaints. The team consists of personnel from both direct and indirect units to ensure the resolution of customercomplaints. The team members promptly analyze the causes of the complaints, gather and integrate information providedby the customer, use various testing equipment and analytical methods to examine and verify the issues, identify the rootcause of product quality problems, propose and implement corrective measures, resolve the complaints, and ensure thatsimilar issues do not occur again.
Customer Complaint Management
Megmeet always adheres to a customer-oriented approach and continuously improves customer satisfaction. According tothe national standards GB/T 19038-2009 "Guidelines for Customer Satisfaction Measurement Models and Methods" andGB/T 19039-2009 "General Rules for Customer Satisfaction Measurement," we conduct customer satisfaction surveysthrough the Enterprise Information Platform (EIP). The survey covers ten aspects, including product quality, productpackaging, product cost-e?ectiveness, transportation services, order delivery, and after-sales services. By analyzing theinformation obtained from the customer satisfaction survey, the company identi?es its shortcomings and the areas ofconcern for customers, continuously improving product and service quality to ultimately support mutual development withcustomers.
Customer Satisfaction Management
In accordance with the "Cybersecurity Law of the People's Republic of China,""Data Security Law of the People's Republic of China," and other relevant lawsand industry standards, the company has formulated and implementedsystems such as the "Megmeet Employee Electrical Manual - InformationSecurity," "Information Security Management Reward and Penalty Regula-tions," "Information Asset Classi?cation Management Speci?cations,""Information System Security Management Regulations," "Information SecurityIncident Emergency Plan," and "Data Backup Management Speci?cations."The focus is on network security protection, data backup and disasterrecovery management, and establishing a data security emergency responsemechanism to continuously strengthen information security and con?dentialitymanagement. The company is gradually improving the security incidentreporting management system, establishing an information security liaisonsystem, and specifying the handling and corrective actions for di?erent levelsof information security incidents reported by employees. This ensures robustinformation security. The company regularly conducts information securityknowledge training for employees, external partners, and customers throughvarious channels. It strengthens the protection of personal privacy and trade secrets, improves data leakage preventiontechnologies, and ensures the non-leakage of core data, providing higher-quality and more secure services to customers.The company has completed the ISO/IEC 27001 Information Security Management System certi?cation. During the reportingperiod, the company did not experience any leakage of core R&D data, customer data, or operational data, nor any majorsecurity attacks or data breaches.
Data Security Management
S3Customer Service ManagementS4Data Information Security
Based on the "Data Security Law of the People's Republic of China," "Personal Information Protection Law," "Cybersecuri-ty Law," and industry standards (ISO 27001, GDPR, etc.), and combined with the company's business scenarios, a securitymanagement system covering the entire data lifecycle is established.
Compliance Requirements
Megmeet incorporates data security and customer privacy protection into the core issues of ESG (Environmental, Social,Governance), as a key action to ful?ll social responsibility, enhance brand trust, and meet global compliance requirements.This aligns with the United Nations Sustainable Development Goal (SDG 9), which calls for "building inclusive and sustain-able industrial innovation."
ESG Strategic Positioning
As a high-end equipment manufacturing and intelligent solutions provider, Megmeet ensures the security of sensitiveinformation such as customer data (Personally Identi?able Information - PII, device usage data), R&D data, and supplychain data. This includes ensuring the security of data during the processes of collection, storage, transmission, sharing,and destruction.
Business Requirement
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To ensure comprehensive data security, the company implements a three-tier operation model: "Data Classi?cation andGrading - Technical Protection - Dynamic Monitoring." In terms of classi?cation standards, data is divided into three maincategories: core R&D data (algorithm code, patent designs), customer data (contract orders, user pro?les), and operationaldata (?nancial reports, HR information), accurately matching business scenario needs. Based on this, graded protection isimplemented according to data sensitivity and impact scope: top secret level (core algorithms), con?dential level (customerprivacy), and internal level (daily operations), with di?erentiated encryption strategies and access control to achieve re?nedmanagement.In terms of technical protection, a multi-layer defense mechanism is adopted: core data is encrypted throughout its entirelifecycle using the AES-256 encryption algorithm, and transmission channels are upgraded to the TLS 1.3 protocol; the leastprivilege authorization is implemented based on the RBAC role-based access control model, combined with a SIEM systemfor real-time monitoring of abnormal operations and logging; endpoint devices are equipped with document encryptionsystems to block unauthorized external transfers via email, USB drives, etc.; user behavior data is desensitized using di?er-ential privacy technology to ensure compliance with data protection regulations.
Megmeet adheres to the core supply chain management philosophy of "safety and compliance, green and low-carbon, coop-eration and win-win," maintaining e?cient and low-cost supply chain operations, and has established a supply chain securitymanagement system covering the entire chain. This is achieved through a layered management model for e?cient opera-tions.In terms of management structure, the Group's Supply Chain Management Center oversees the certi?cation and procurementof standard components and other general materials, and formulates supplier management policies, standards, and otherguiding documents. The subsidiaries and business units of the Group focus on the certi?cation, procurement, and delivery ofindustry-speci?c and customized materials, forming di?erentiated control. The company's four core functional departments(Purchasing, Quality, Planning, and Outsourcing Support) collaborate to ensure that the entire process, from raw materialselection to production delivery, is safe and controllable.
Data Operation Management
Supply Chain Management Strategy
Supplier Chain Management System
Supply Chain Risk Identi?cation, Assessment, and Response
S5Supply Chain Security
The core objective of Megmeet's supply chain management is to ensure the stability of the entireproduct delivery chain through e?cient and low-cost operations, and to drive the intelligent upgradeof the supply chain to meet the development needs of multiple industries.
The company has developed dozens of supply chain management documents and related forms based on governmentregulatory requirements, multiple international standards (ISO9001, ISO14001, ISO45001, IATF16949, ISO13485, IECQQC080000, RoHS directives, etc.), as well as customer requirements, in conjunction with the company's actual situation. Acomprehensive supply chain management system has been established, covering supplier access, audits, performance evalu-ations, and compliance management. This system is continuously optimized in line with updates to government policies,international standards, and the company's actual needs, ensuring that the company's supply chain management require-ments are continuously met.The company's main supplier management documents include the "Supplier Management Procedure," "Supplier Certi?cationOperating Standards," "Supply Agreement," "Supplier Quality Assurance Agreement," "Supplier Con?dentiality Agreement,""Environmental Agreement," "Supplier Social Responsibility Management Procedure," "Supplier On-Site Audit OperatingStandards," and "Supplier Performance Evaluation Operating Standards," among others.
Supply Chain Management Documents
New Supplier Access Standards
Megmeet requires new suppliers to sign seven agreements, including the "Supplier Certi?cation Operating Procedures" andthe "Megmeet Sustainability Business Code of Conduct," covering core clauses such as quality, environmental protection,and social responsibility. The company conducts on-site inspections and evaluations of potential suppliers based on supplychain management documents. In principle, the supplier introduction review should be conducted on-site, but remote reviewscan be considered under force majeure circumstances (e.g., war, pandemic, political factors, etc.). During the supplierintroduction review process, evaluations are conducted based on multi-dimensional standards, including quality, delivery,cost, service, hazardous substances, and CSR (labor, environmental protection, and business ethics). Suppliers are rated infour levels: A, B, C, and D, ensuring high-standard selection.
Supplier Dynamic Performance ManagementIn supplier performance management, Megmeet combines monthly performance evaluations with annual supervisory audits.According to the "Supplier Performance Evaluation Operating Standards," suppliers are assessed on a monthly basis, withevaluation factors including technical services, quality (including environmental protection), cost, and delivery. The results ofthe monthly evaluations serve as important data for the annual supervisory audits. Based on the evaluation outcomes,Megmeet implements corresponding incentive or corrective measures and applies tiered management to key suppliers.Con?ict Minerals Management
The company implements con?ict minerals management measures and conducts due diligence on the sources and supplychains of tantalum, tin, tungsten, and gold used in its products, to reasonably ensure that their sources comply with theOECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Con?ict-A?ected and High-Risk Areas or anequivalent and recognized due diligence framework.
Risk Identi?cation and Assessment
Megmeet identi?es, assesses, and responds to supply chain risks through a systematic mechanism to ensure business conti-nuity and stability. The company implements the "Procurement Risk Control and Risk Procurement Management" process,classifying risks into: external risks (including price risk, accidental risk, quality risk, technological advancement risk, andcontract fraud risk) and internal risks (including planning risk, selection risk, contract risk, acceptance risk, inventory risk, andresponsibility risk). Risks are regularly quanti?ed and assessed based on their impact and probability of occurrence. Thecompany conducts "Potential Failure Mode and E?ects Analysis (PFMEA)" to evaluate the impact of key risk points on thecompany’s operations and development.
Megmeet has established the "Supplier Hazardous Substance Scoring Table," which outlinesa series of self-assessment guidelines for suppliers. Speci?cally, these include managingenvironmental requirements such as RoHS, REACH, and ELV as product speci?cations, andcon?rming that all materials in the product bill of materials comply with environmentalrequirements for eco-friendly products.
Supplier HazardousSubstance Review
The company prioritizes selecting suppliers that use renewable energy or circular productiontechnologies. Suppliers are required to meet green criteria, including establishing manage-ment systems, implementing eco-design, and e?ectively managing their resource and energyconsumption, pollutant emissions, and the use of hazardous substances.Green Supplier
Management
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In 2024, the Company provided strong support for steady business growth by optimizing supply chain management,strengthening logistics coordination, promoting digital upgrades, and advancing green supply chain development tomanage procurement risks.In this year, we revised the supplier onboarding process and annual audit process, with speci?c documents including the"Supply Agreement," "Environmental Agreement," "Con?dentiality Agreement," and "Quality Assurance Agreement," andorganized suppliers to re-sign them. We established an agent certi?cate management section and optimized the suppliercerti?cate management. We organized centralized CSR training for the company's supply chain procurement personnel toenhance the social responsibility awareness of the relevant sta?. At the same time, we conducted internal training onhazardous substance management and E-Learning online course training.
Megmeet's Supply Chain Management in 2024
Response Measures and Outcomes
The company responds to di?erent levels of supply chain risks in a tiered manner, prioritizing high-priority risksand taking corresponding measures. Lower-priority risks are addressed progressively as resources allow.The company adopts a diversi?ed layout strategy by establishing a dual manufacturing hub model of "domestic +international," with key chip reserves su?cient to meet up to six months of demand.The company applies an intelligent early warning model to analyze geopolitical and natural disaster risks, e?ec-tively avoiding potential supply disruption crises. No supply interruption incidents occurred in 2024.Megmeet has established an emergency response system and conducts quarterly supply chain disruptionsimulation drills, e?ectively reducing recovery time to 48 hours.The company has set up a “CSR Red Line Emergency Plan,” which de?nes ten red lines for itself and suppliers,including child labor, illegal labor, and environmental violations. No major violations occurred in 2024.Megmeet tests incoming materials for hazardous substances in accordance with the RoHS directive, interceptsnon-compliant materials, and has established and implemented the "Procedure for Handling Material HazardousSubstance Exceedance." Environmental non-compliance issues with suppliers are managed in a closed-loopsystem, with a 100% recti?cation rate.In terms of con?ict minerals management, the company conducts due diligence on the sources of tantalum, tin,tungsten, and gold in its products. In 2024, it completed 3TG (tantalum, tin, tungsten, gold) source investigationsfor 208 suppliers, with 100% compliance in the results.
Continuously Promote Green Supply Chain Management
In 2024, Megmeet further strengthened the resilience of its supply chain and promoted the green and low-carbon transformation.Key initiatives include:
Optimized and improved core documents such as the "Megmeet Sustainability Business ConductGuidelines," "Supply Agreement," "Quality Agreement," and "Supplier Quality, EnvironmentalProtection, and Social Responsibility Claim Agreement," incorporating carbon emissionsassessments into the supplier CSR audit.
System Optimization
Hired a dedicated Supply Chain Carbon Management System Engineer and developed the"Supplier Carbon Emissions Management Procedure" to promote the implementation of carbonemissions management among suppliers. Conducted 5 internal compliance training sessions and12 external (supplier) hazardous substance management training sessions. On-site environmentalaudits also include awareness training on the company's environmental requirements to enhanceESG awareness across the entire supply chain.Capability Building
Conducted carbon emission baseline surveys for CSR-excellent suppliers to more accuratelyassess the carbon footprint of the supply chain, providing data support for the future develop-ment of a supply chain carbon management strategy. Provided energy-saving transformationtechnical support to high-carbon-emission suppliers. Continued to promote energy-saving andcarbon-reduction business practices among suppliers, striving to align their development withthe company's ESG goals.
Green Actions
Total ProcurementAmount for 2024
+Over 4.5 billion yuan
+
+
MainstreamSemiconductor
60000
+
1200
+ITEM QuantityNumber of Suppliers
Suppliers with aprocurementamount of 10 million
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S6Industry Cooperation and Development
Megmeet always places talent strategy at the core of its development, committed to building a high-quality talentecosystem and promoting technological innovation and sustainable development in the industry. In 2024, the companycontinued to deepen its university-industry cooperation, partnering with over 30 universities in Central China, East China,South China, and Northwest China. Through the establishment of joint laboratories, internship bases, and technologyexchange platforms, the company set up special scholarships and grants to provide young talents with dual channels forscienti?c research practice and career development. Focusing on cutting-edge industry technology, Megmeet collaborateswith universities such as Zhejiang University and Xi'an University of Science and Technology on industrial research andtechnology cooperation, supporting students in tackling advanced topics. To enhance talent attraction, the company hasbuilt a "recruitment, cultivation, utilization, and retention" full-cycle management system, customizing growth paths fortalent from campus selection to job empowerment. Relying on its global R&D network, Megmeet continues to increaseinvestment in core technologies, driving innovation to release the value of talent and injecting sustained momentum intothe development of the smart electrical ?eld.In recent years, Megmeet has actively engaged in multiple industry-university-research projects with research universities.These include collaborations with South China University of Technology on "Key Technologies Research and Developmentfor High-Performance ****", Zhejiang University's Hangzhou International Innovation Center on "Advanced Power Manage-ment Technology Consulting", Xi'an University of Science and Technology on the "2024 Shaanxi Province TechnologyInnovation Guidance Plan Project – Qin Chuangyuan 'Scientists + Engineers' Team Building Project", Zhejiang UniversityCity College on "Research on Industrial Control Servo Pump ******", Zhejiang University of Technology Taizhou ResearchInstitute on "Factory Layout and Logistics Optimization Plan Design", Taizhou Vocational and Technical College on"Intelligent Sanitary Ware ****** Testing", and Zhejiang University Taizhou Research Institute on "Split Machine InnovativeDesign", among others. These industry-university-research projects have all been successfully developed, and the researchoutcomes have been industrialized with a high conversion rate, receiving positive market feedback.
University-Industry-Research Cooperation
Megmeet actively joins industry associations and participates in peer exchangeexhibitions, benchmarking against leading companies in the industry. By collabo-rating with outstanding small and medium-sized enterprises in the industry andsupply chain, Megmeet works together to pursue a sustainable development path.Through technological innovation and market expansion, Megmeet continuouslystrengthens its core competitiveness, contributing to the prosperity of theelectrical industry.Megmeet understands the important role of industry associations in promotingindustry development, regulating market order, and driving technological innova-tion. Therefore, it actively joins multiple industry associations related to theelectrical industry.By joining more than 30 associations, including the China Power Supply Associa-tion, IEEE, PMIC, China Mechatronics Association, China Industrial ElectricalAssociation, China Welding Technology Association, Shenzhen Electronics IndustryAssociation, Shenzhen Experts and Talents Association, and Shenzhen AutomationAssociation, Megmeet consistently upholds the principles of proactive engagementand win-win cooperation. The company actively participates in associationactivities, engaging in extensive communication and collaboration with peers,benchmarking against leading industry players, and working alongside outstandingsmall and medium-sized enterprises in the supply chain to jointly explore sustain-able development paths. Through technological innovation and market expansion,Megmeet continues to strengthen its core competitiveness, contributing signi?-cantly to the prosperity of the electrical industry.In 2024, Megmeet actively participated in various international industry exhibitionsand forums, engaging in in-depth discussions with global customers andaccurately capturing industry demand trends. The company attended more than50 exhibitions across over 20 countries.
Participation in Associations and Exhibitions
+个
国家数量
+
场
展会数量
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Harmonious CultureMegmeet strictly follows the Labor Law of the People's Republic of China, the Labor ContractLaw of the People's Republic of China, and other relevant laws and regulations to establish itsemployee management system, ensuring compliance and fairness in aspects such as recruit-ment, dismissal, compensation, promotion, working hours, and vacation management. Thecompany adheres to the principles of openness, fairness, and impartiality in recruitment anddismissal processes. It also conducts exit interviews with former employees to understand theirtrue opinions, while helping to improve employee management processes, performanceassessments, and other related tasks, ensuring the compliance and fairness of dismissaldecisions and protecting employees' legal rights.
S-7 Employment PracticesS-8 Occupational Health and SafetyS-9 Career DevelopmentS-10 Employee CareS-11 Social Contribution
S7Employment Practices
S8Occupational Health and Safety
Megmeet always adheres to the core concept of equal and compliant employment, creating a fair, just, safe, and healthywork environment. In strict compliance with the relevant laws and regulations of the country or region where it operates,the company has established systems such as the "Regulations on Prohibiting the Use of Forced Labor," "Procedures forthe Relief of Child Labor and Minor Worker Protection," "Child Labor Rescue Control Procedures," and "Prohibition of ChildLabor and Child Labor Rescue Procedures." The company ?rmly prohibits any form of forced labor, the employment ofchild labor, and respects employees' will, ensuring that employees enjoy their legal labor rights. In addition, the companyhas developed the "Regulations on Protecting Employees from Discrimination and Harassment," which clearly stipulatesanti-discrimination, anti-harassment, and anti-abuse clauses. The company has also established an employee reportingand protection mechanism for incidents of discrimination, harassment, and abuse, e?ectively safeguarding the legal rightsof all employees.
Megmeet, in accordance with the Labor Law of the People's Republic of China, has established the Employee Compensa-tion Management Measures, aiming to create a compensation system that is fair, competitive, motivating, economical, andcompliant. These measures apply to all formal employees, including retired rehires, secondees, outsourced personnel, andinterns. The compensation system is closely linked to employees’ quali?cation levels and is divided into ?ve major jobfamilies, with speci?c compensation grades approved by the Human Resources Committee. The compensation structureconsists of four components: salary, bonuses, bene?ts, and equity. Employee compensation information is strictly con?-dential and is veri?ed and managed by the Human Resources Department.
Megmeet focuses on the health of its employees and is committed to ensuring theirsafety. In terms of occupational disease management, the company has implemented astrict response mechanism, including strict health controls during the initial recruitmentphase, adding occupational disease examination items, and having the Safety Committeeconduct annual reviews of occupational diseases for each position, intervening immedi-ately to address high-risk issues. The company uses the LEC risk assessment methodfor risk evaluations, assessing risk exposure time, the severity of the risk, and thenumber of people directly exposed to the risk through quantitative values. The companycares about employee health and organizes free annual health check-ups for employees,in addition to providing additional liability insurance and overseas safety coverageinsurance.The company has developed comprehensive and complete procedures and regulations,including the "Occupational Health and Safety Control Procedures," "Chemical Spill Emergency Response Plan," "FireAccident Emergency Response Plan," "Anti-Terrorism and Riot Emergency Response Plan," and "Food Poisoning AccidentEmergency Response Plan," to improve the company's rapid response and emergency handling capabilities, reduceaccident injuries and occupational disease hazards, ensure the physical health and life safety of employees, and minimizeenvironmental impact and property damage. The company has also established the "Employee Safety Manual" and "SafetyResponsibility Reward and Punishment System," which clearly outline the safety matters employees should pay attention tobefore, during, and after work, eliminate violations, and uphold the safety red line.Megmeet and its subsidiaries conducted regular monitoring of occupational health-related hazard factors in 2024, withthird-party organizations issuing the testing reports. Since 2019, Megmeet has continuously held the GB/T45001-2020/I-SO45001:2018 Occupational Health and Safety Management System Certi?cation.Megmeet strictly abides by national and local labor laws and regulations to protect employees' rights regarding wages,working hours, rest, and leave. The company has established the Voluntary Employment Management Procedure and set upemployee feedback channels to ensure that employees' legal rights and interests are promptly upheld. In addition,Megmeet places great importance on employees’ career development and growth by o?ering diverse training and develop-
Employee Rights and Interests
ment opportunities and advocating a fair and competitive employment mechanism. The company actively ful?lls itscorporate social responsibilities by participating in public welfare activities and supporting charitable causes, contributingto the building of a harmonious society. Megmeet's commitment to employee rights not only re?ects its respect and carefor its employees but also demonstrates its active undertaking of social responsibility. The company will continue to strivefor the joint development of both the enterprise and its employees.
In 2024, the total number
of employees in thecompany is7624
Hunan Province, Guangdong Province, Zhejiang Province, Hubei Province, Jiangxi Province,Henan Province, Sichuan Province, Guizhou Province, Shaanxi Province, and Anhui Province.
With a gender ratio of
approximately
6:4
Employees aged 30 andabove account for of the
total workforce
56%
In 2024, the top ten administrative regions by employee origin are
Salary
BonusesBene?tsEquity
Compensation Management
Compliance in Employment
Occupational Health and Safety Management System
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S9Career Advancement and DevelopmentMegmeet develops an annual plan for occupational health and safety training and drills, and implements training and drillsaccording to the plan. The company's Safety Management Department ?rst organizes training for the safety o?cers fromeach department, who then return to their respective departments to conduct training for the employees. During thetraining, attendance is recorded, and at the end, a questionnaire exam is conducted through a QR code scan to assess thetraining e?ectiveness. In 2024, Megmeet conducted a total of 199 training sessions, achieving a 100% completion rate forthe relevant indicators.
In June 2024, Megmeet's Global Manufacturing Center held Safety Production Month activities. The event, centeredaround the theme "Everyone Talks Safety, Everyone Can Handle Emergencies - Smooth Life Channels," was conducted inthe form of a quiz with prizes. It included three main segments: safety knowledge quizzes, a "Spot the Safety Hazards"activity, and a "Charades" game where participants guessed safety-related content. The event aimed to educate in anenjoyable way, allowing employees to raise their safety awareness, familiarize themselves with safety production opera-tions, and avoid risks and hazards in a relaxed, game-like atmosphere.
Employee activities
Megmeet Safety Training and Drills
Middle and Junior Management Personnel Training
Occupational Health and Safety Training and Drills
Special Initiative: Safety Production Month Activities
Career Advancement and Development
This is aimed at employees across all levels of the company. Examples include newemployee onboarding training, management training, reserve cadre training, specializedtraining for key positions, general quality and skills training, and the implementation ofexternal recruitment projects. The goal is to ensure that employees can quickly integrateinto the company and acquire the necessary professional knowledge and skills.Company-leveltraining
This training is continuously carried out around the actual business needs, such as productintroductions, basic professional skills training, internal experience sharing, and hands-ondrills. It enables employees to re?ne their skills through practice and quickly respond tocomplex and changing business challenges.
Business group-leveltraining
Based on individual development plans and business needs, this training focuses on keyskills, knowledge, and the internalization of processes. It includes areas such as softwareand instrument operation, equipment usage, etc. By combining online learning maps,hands-on job training, and mentoring, the learning content and paths are clearly planned,shortening the employee development cycle and ensuring that employees meet jobcompetency standards.
Department-leveltraining
Middle and juniormanagementpersonnel training
"Management cadre training" is a series of training courses designed internally by Megmeetfor management personnel, aiming to enhance their role awareness, operational capabili-ties, and leadership in?uence, so they can better cope with the challenges in daily manage-ment work.The courses cover topics such as leadership development, team management,decision-making, and execution, helping management personnel continuously improve theirmanagement skills and leadership abilities. Through these targeted management trainingprograms, the company is committed to cultivating management talent with strategic vision,excellent execution, and outstanding leadership, providing strong support and assurance forthe company’s long-term development.
Megmeet has developed the "Training Management System" to promote group training management based on the principleof "universal planning, hierarchical implementation." The Human Resources and Administration Center, in accordance withthe group's strategic plan and the training needs of business units, identi?es key training projects for each stage andformulates the group's annual training plan. Focusing on employees' personalized needs, the center fully refers to relevantposition development programs, professional course catalogs, and knowledge lists, comprehensively considering andproposing suitable training methods and course content to meet both employee growth and business development needs.Megmeet's talent development work is divided into four levels: company-level training, business group-level training,department-level training, and training for middle and junior management personnel.
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Megmeet follows the principles of "objectivity, fairness, and transparency," balancing internal fairness and market compet-itiveness, and combining security with incentives. The company has developed the "Employee Performance ManagementMeasures" to align responsibility with bene?ts, capability with value, and performance with rewards in employee compen-sation distribution. This supports the execution of the company’s strategic initiatives, enhances organizational capabilities,and ensures the implementation of corporate culture. In terms of performance evaluation and setting, Megmeet hasadopted multiple performance assessment methods, such as the "goal-oriented" management approach and 360-degreeperformance evaluations, to motivate employees to achieve both individual and team goals. The company has alsoestablished a comprehensive performance feedback and grievance mechanism with the principle of "timely communicationand thorough investigation of complaints," ensuring fairness and justice in performance evaluations.
Performance Management
The company practices a "people-oriented" talent philosophy and continuously optimizes the talent development ecosys-tem. Based on the group’s development needs, the company comprehensively considers factors such as business volume,work saturation, and settlement resources to reasonably con?gure sta? teams at all levels. The company has established acareer development system and promotion mechanism for employees, determining career development paths based onemployee abilities and breaking through limitations in promotion routes. It fully respects the personalized developmentneeds of employees, dividing the pathways into management and professional tracks. The professional track is furtherdivided into technical, marketing, professional, and operational categories, with each category having its own job levels andpromotion requirements, ensuring that all types of talent can receive career development opportunities that match theirabilities. Promotion selection is based on objective and fair principles, with job responsibilities serving as the foundation.Employee abilities, work performance, professional qualities, and job responsibilities are matched, and job positions andlevels are evaluated objectively. At the same time, the company follows dynamic management principles, with the ability foremployees to be promoted or demoted, avoiding lifetime appointments, and maintaining the continuous vitality of thegroup’s human resources.
Promotion Pathways
Social Recruitment Newcomer "Eagle Training Camp"
" Eagle Training Camp" is a training program conducted by Megmeet for new employees hired through socialrecruitment, focusing on team integration and standardized management of new employee onboarding andprobationary period development.The "Eagle Training Camp" is held every two months and adopts a blended learning model, combining onlineand o?ine training. Online training is conducted through the E-learning platform, where participants need tocomplete the learning map challenges and pass online assessments to ?nish the online training. The learningmap consists of 8 stages and 10 courses, covering topics such as "Introduction to Megmeet," "Interpretation ofValues," "Meeting Equipment Usage," "Information Systems and Security," and "Financial Expense Reimburse-ment," among others. O?ine training includes corporate culture introduction, including "Company and ProductIntroduction," "Onboarding Essentials," "Safety Training," and team challenge projects.Through the "Eagle Training Camp," new employees can systematically understand the company's business andcore values, familiarize themselves with the work environment and team members, allowing them to adapt totheir roles more quickly and integrate into the team.
Campus Recruitment Newcomer "Eagle Training Camp"
"Eagle Training Camp" is a training program designed by Megmeet speci?cally for campus recruitmentgraduates, aimed at enhancing their action conversion e?ectiveness and focusing on the graduates' periodicgrowth and role transition during their onboarding process.The training program is implemented every year in July and lasts for 6 months. It combines theoretical training,production experience, and on-the-job practice, allowing participants to systematically master relevantknowledge and skills. In addition, to enhance corporate culture recognition and integration, the training alsoincludes activities such as team-building, executive meet-and-greets, personal growth story sharing, andworkplace tips sessions.Through the "Eagle Training Camp," campus recruitment graduates are able to comprehensively enhance theirpersonal abilities, accelerate role transition and growth, while also strengthening their recognition and integra-tion with the company culture, injecting vitality into the company’s future development.
Brigadier Training Camp - Reserve Cadre Training ClassThe "Reserve Cadre Training Class" is a training program designed by Megmeet speci?cally for campusrecruitment graduates in production and manufacturing. The program aims to develop both comprehensiveabilities and professional skills simultaneously, combined with a job rotation plan, to identify and cultivatereserve talent to meet the needs of organizational strategy implementation and talent reserves.
Professional
Process IntroductionMindset InspirationProfessional Etiquette
Team Building
Stage One: Intensive Training
2024.4
Noti?cation & Professional
Cultural IdentityRole TransformationTraining Results
Business LearningCapability Enhancement
Project Practice
Mentor Evaluation
Learning Credits
ob-Speci?c Skills
2024.5-2024.10
Stage Two: QCC Topics
Corporate Person
Performance Growth
Value RealizationMentor EvaluationPerformance Follow-upob-Speci?c Skills
2024.11-2025.1
Stage Three:
Job-Speci?c Training
Magmeet PeopleTraining StageTrainingObjectivesTraining DurationTraining ContentEvaluation
MethodE?ect Achievement
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Job AwarenessProject PracticeProcess Awareness
Department AwarenessProfessional SkillsRole TransformationProfessional ContributionSkill Training
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Megmeet regards employee care as a key mission, demonstrating concern and support for employees through a series ofspeci?c initiatives, thereby enhancing employee happiness and work motivation.
To improve corporate culture, e?ectively motivate employees, create a positive working atmosphere, and promotecommunication and cooperation, the group encourages each department to organize positive and uplifting team-buildingactivities.The company regularly organizes a variety of internal employee care activities and unionevents, including new employee forums, graduate forums, and more, aimed at promotingcommunication and interaction among employees and enhancing team cohesion. Thecompany has developed a comprehensive employee care system. In terms of cultural life,the company organizes traditional holiday activities, sports events, and cultural and sportsassociation activities throughout the year, enriching employees' cultural lives and strength-ening organizational cohesion. Regular employee care and union activities are held,including new employee forums and graduate forums, to promote employee communicationand interaction, enhance the sense of belonging and team cohesion, and create a positiveorganizational atmosphere.
Creating a WarmWorkplace
The company places great emphasis on caring for employees facing di?culties, establish-ing a support management system for employees in need. It provides ?nancial assistanceand care services, re?ecting the company’s warm concern for its employees.Addressing Employee
Di?culties
The company regularly organizes psychological health seminars, wellness therapies, andother welfare and consolation activities, paying attention to employees' physical and mentalwell-being and ensuring their safety. The company also genuinely cares for femaleemployees by holding activities for International Women's Day, actively implementingparental leave policies, and providing ten days of parental leave each year for employeeswith children under three years old, o?ering comprehensive support and care for employ-ees.
Focusing onEmployee MentalHealth and Caringfor Female Employees
S10Employee Care Implementation
Megmeet’s Changsha Intelligent Industry Center has established an employeepsychological counseling room, equipped with a dedicated external psychologicalcounseling team to provide personalized psychological guidance and counselingservices. The center is committed to o?ering comprehensive mental health support,providing employees with a safe and private space to address psychologicalconcerns related to work and life.
Case: Employee Psychological Counseling Room
S11Social Contribution
Megmeet has made positive contributions to building a harmonious society, promoting social development, and enhancingpeople's well-being through its social responsibility practices. The company has established a strong corporate image andreceived widespread praise and recognition from all sectors of society. At the same time, it has conveyed a positivecorporate culture and values to society, making an active contribution to the creation of a harmonious society and theachievement of sustainable development.
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Educational Assistance
Megmeet continuously contributes to society through regular interactions and exchanges with governmentdepartments, sharing innovative ideas. For the past eight years, the company has collaborated with the Schoolof Electrical Engineering at Zhejiang University on educational assistance activities. As of December 2024,more than 180 students have received awards and assistance.The company has donated funds to establish the Megmeet Scholarship and Financial Aid Fund, aimed atrewarding outstanding students at the School of Electrical Engineering, Zhejiang University, and providing?nancial support to students from low-income families to help them successfully complete their universitystudies. This scholarship and aid program not only focuses on students' academic achievements but also takesa comprehensive approach by considering students' moral character, intellectual development, and physicalwell-being to recognize well-rounded excellence.
Students who are diligent, hardworking,and have excellent academic performance,and are recognized by the school as having?nancial di?culties.Scope of Funding
Each student will be granted 4,000 RMBper year.Funding Amount
Megmeet Financial Aid Scholarship
Climate Change Response
ESG Key Performance Data Table
Harmonious HumanityTrust and Shared SuccessAbout MegmeetCorporate GovernanceGreen and Low-CarbonMegmeet 2024 ESG Report
IndicatorUnit202220232024Total Greenhouse Gas Emissions
Tons of CO2 Equivalent
(tCO2e)Tons of CO2 Equivalent
(tCO2e)Tons of CO2 Equivalent
(tCO2e)Tons of CO2 Equivalent
(tCO2e)Tons of CO2 Equivalent / Ten
Thousand Yuan of Revenue
(tCO2e/10,000 RMB)
Scope 1Total Greenhouse Gas Emissions
Scope 2Total Greenhouse Gas Emissions
Scope 3Total Greenhouse Gas Emissions
GreenhouseGas Emissions Intensity
17171012.40
1296.5216863.6917152852.19
24327917.63
1180.5020289.3924306447.74
23721492.79
522.80
26744.9823694225.01
Energy UsageIndicatorUnit202220232024
MWhMWhMWhTons of standard coal (tce)kg of standard coal/10,000 yuanof output value (kgce/10,000 yuan)
30983.76
1413.9029569.863807.90
5.16
36924.161549.1535375.014537.98
5.48
47728.751529.0646199.695865.86
6.64
The greenhouse gas accounting scope is limited to Megmeet Group's subsidiaries, including Zhuzhou Electric, iKAHE Sanitary Ware, Megmeet Thailand, andShenzhen Megmeet. The calculation and statistical methods are based on the GHG Protocol Greenhouse Gas Accounting System.Note 1:
Scope 1 greenhouse gas emissions originate from direct emissions caused by the consumption of natural gas, gasoline, and diesel in the company's ownedequipment and vehicles.
Note 2:
Scope 2 greenhouse gas emissions originate from indirect emissions caused by the purchase of electricity by the company.Note 3:
Scope 3 greenhouse gas emissions mainly come from the following sources: purchased goods and services, capital goods, fuel- and energy-related activities,
upstream transportation and distribution, waste generated in operations, business travel, employee commuting, upstream leased assets, downstream
transportation and distribution, processing of sold products, use of sold products, disposal of sold products, downstream leased assets, franchises, and
investments.Note 4:
Social WelfareMegmeet organizes regular public welfare activities every year, such as material donations and voluntary blooddonations, bringing warmth to communities and streets. The company actively ful?lls its social responsibilities,advocates, and encourages employees to participate in social welfare activities, such as providing assistance tothose in need and joining social welfare organizations. Through these practices, Megmeet continuouslystrengthens its social responsibility brand image, contributing to the high-quality development of its business.
Megmeet Scholarship
Students with ?nancial di?cultiescurrently enrolled
Target AudienceOutstanding students from the School ofElectrical Engineering,Zhejiang UniversityTarget Audience
Including doctoral students, master'sstudents, and undergraduate students
Scope of Funding
The funding amount is divided by degreelevel: 8,000 RMB (Doctoral), 6,000 RMB(Master's), and 4,000 RMB (Undergradu-ate).Funding Amount
Photovoltaic Electricity
ConsumptionMunicipal Electricity
ConsumptionComprehensive Energy
ConsumptionComprehensive EnergyConsumption Intensity
Total Electricity Consumption
23.2329.3326.81
8384
Waste Disposal
IndicatorUnit
2024Total Hazardous WasteTotal Non-Hazardous Waste
TonTon
4.11
2177.71Hazardous waste refers to waste that, due to its toxicity, corrosivity, ?ammability, reactivity, infectivity, or other dangerous characteristics, may cause director potential harm to the ecological environment or human health.
Data Information Security
IndicatorUnit202420232022Data Security IncidentsCustomer Privacy Breach Incidents
CountCount
Employee Type Proportion Breakdown
Total Number of EmployeesTotal Number of Male Employees
Percentage of Male EmployeesTotal Number of Female EmployeesTotal Number of Female EmployeesNumber of Employees Aged 30 and BelowPercentage of Employees Aged 30 and Below
Number of Employees Aged 31-40Percentage of Employees Aged 31-40Number of Employees Aged 41-50Percentage of Employees Aged 41-50Number of Employees Aged 51 and AbovePercentage of Employees Aged 51 and AbovePercentage of Employees on Labor ContractsPercentage of Employees on Labor Dispatch
PersonsPersons
%Persons
%Persons
%Persons
%Persons
%Persons
%
%
%
76244910
64.4%
2714
35.6%
335144%2964
35.3%
1119
14.7%
6%
71.5%
27.4%
67164248
63.3%
2468
36.7%
2821
42.0%
2785
41.5%
14.2%
2.3%
90.4%
7.2%
52623312
62.9%
1950
37.1%
2106
40.0%
2340
44.5%
13.4%
2.1%
95.3%
2.9%
Water Resources UtilizationIndicatorUnit202220232024Total Water ConsumptionTotal Recycled Water Consumption
Water Consumption Intensity
TonTonTon/10,000 RMB Output
187638
0.25
184155
0.22
213689
0.24
Note 1:
Non-hazardous waste refers to waste that does not have toxic, corrosive, ?ammable, reactive, infectious, or other dangerous characteristics, and does notcause signi?cant harm to the ecological environment or human health during normal disposal or natural degradation processes.
Note 2:
IndicatorUnit202420232022
Harmonious HumanityTrust and Shared SuccessAbout MegmeetCorporate GovernanceGreen and Low-CarbonMegmeet 2024 ESG Report
Employee Training and Development
Average training hours per senior managementAverage training hours per middle managementAverage training hours per production employeesNumber of social responsibility training sessions
Number of trade safety training sessionsNumber of production safety training sessionsNumber of management skills training sessionsNumber of engineering technical training sessions
Number of quality system training sessionsNumber of comprehensive quality training sessions
Number of new graduate training sessions
Number of onboarding training sessionsTotal number of training sessions
HoursHoursHoursSessionsSessionsSessionsSessionsSessionsSessionsSessionsSessionsSessionsSessions
1705
1281
1371
8586
Innovation-Driven
IndicatorUnit202420232022
R&D Investment as a Percentage of Main Business Revenue
R&D Personnel as a Percentage of Total Employees
%%
12.04%
36%
11.53%
34%
11.09%
34%
Corporate Governance
IndicatorUnit202420232022
Shareholders' General Meetings Held
Supervisory Board Meetings HeldBoard of Directors Meetings Held
SessionsSessionsSessions
Supply Chain ManagementSupply Product CategoriesNumber of Suppliers Providing Products for Megmeet in 2024
Category 1 - SemiconductorsCategory 2 - Magnetic ComponentsCategory 3 - Hardware Components
Business Ethics
2024 Annual Megmeet Anti-Bribery and Anti-Corruption Training StatisticsTotal NumberTrained NumberPercentage
100%
100%
76247624100%
EmployeesManagementDirectors
IndicatorUnit202420232022
Harmonious HumanityTrust and Shared SuccessAbout MegmeetCorporate GovernanceGreen and Low-CarbonMegmeet 2024 ESG Report
8788
Report Chapter
CorrespondingSZSE Clause
Reference GRI Topic DisclosureIndex Table of Reporting Standards
Due Diligence
Anti-bribery andAnti-corruptionAnti-unfair Competition
Stakeholder CommunicationDouble Materiality Analysis
Article 52Article 53
Article 56Article 55Board Management
Article 5
Sustainability GovernanceArticle 12
/
/GRI 2-29 Approach to stakeholder engagement
Climate Change ResponseArticles 21 to 28
GRI 305-1 Direct (Scope 1) GHG emissionsGRI 305-2 Energy indirect (Scope 2) GHG emissionsGRI 305-3 Other indirect (Scope 3) GHG emissionsGRI 305-4 GHG emissions intensity
Energy UseArticle 35
Water Resource UtilizationEnvironmental ComplianceManagement
Article 36Article 33Pollutant EmissionsArticle 30
GRI 302-1 Energy consumption within the organizationGRI 302-2 Energy consumption outside the organizationGRI 302-3 Energy intensityGRI 302-4 Reduction of energy consumptionGRI 303-3 Water withdrawalGRI 303-5 Water consumption
GRI 303-4 Water dischargeGRI 306-2 Waste by type and disposal method
GRI 306-3 Signi?cant spills
GRI 405-1 Diversity of governance bodies and employeesGRI 205-2 Communication and training about anti-corruption policiesand proceduresGRI 206-1 Legal actions for anti-competitive behavior, anti-trust, andmonopoly practices
GRI 3-1 Process to determine material topicsGRI 3-2 List of material topicsGRI 2-12 Role of the highest governance body in overseeing impactsGRI 2-14 Role of the highest governance body in sustainability reportingGRI 2-17 Collective knowledge of the highest governance body
GRI 201-2 Financial implications and other risks and opportunitiesdue to climate change
Supply Chain SecurityArticle 45
Industrial Cooperation
and DevelopmentEmployment Practices
/
Article 50
Occupational Health
and Safety
Career Development
and Training
Article 50
Article 50
GRI 308-1 New suppliers that were screened using environmental criteriaGRI 414-1 New suppliers that were screened using social criteriaGRI 308-2 Negative environmental impacts in the supply chain andactions takenGRI 414-2 Negative social impacts in the supply chain and actions taken
GRI 2-7 EmployeesGRI 406-1 Incidents of discrimination and corrective actions takenGRI 2-19 Remuneration policiesGRI 403-9 Work-related injuriesGRI 403-1 Occupational health and safety management systemGRI 403-2 Hazard identi?cation, risk assessment, and incidentinvestigationGRI 403-5 Worker training on occupational health and safetyGRI 403-7 Prevention and mitigation of occupational health and safetyimpacts directly linked by business relationships
GRI 404-1 Average hours of training per year per employeeGRI 404-3 Percentage of employees receiving regular performanceand career development reviewsEmployee Care ImplementationArticle 50
Social ContributionArticle 40
GRI 401-2 Bene?ts provided to full-time employees/
GRI 2-28 Membership associations
Circular EconomyEcosystem and Biodiversity
Protection
Article 37Article 32
/GRI 304-2 Signi?cant impacts of activities, products, and services onbiodiversity
Innovation-DrivenArticle 42/Product Quality and SafetyArticle 47
GRI 416-2 Incidents of non-compliance concerning the health and safetyimpacts of products and servicesCustomer Service ManagementArticle 47/Data and Information SecurityArticle 48
GRI 418-1 Substantiated complaints concerning breaches of customerprivacy and losses of customer data
Waste ManagementArticle 31
GRI 306-3 Waste generatedGRI 306-2 Waste by type and disposal methodGRI 306-2 Management of signi?cant waste-related impacts
Harmonious HumanityTrust and Shared SuccessAbout MegmeetCorporate GovernanceGreen and Low-CarbonMegmeet 2024 ESG Report