ThisreportistheEnvironmental,Social,andGovernance(ESG)ReportpublishedbyHangzhouFirstAppliedMaterialsCo.,Ltd.(FIRST).ThepurposeofthisreportistoshowcaseFIRST'spracticesandachievementsinsustainabledevelopmentandtodisclosetheworkdonebyFIRSTintheareasofenvironment,social,andgovernancein2023andpreviousyears.Report ScopeThe organizational scope of this report covers HangzhouFirst Applied Materials Co., Ltd. and its subsidiaries. Thisreport is published annually, in alignment with the fiscalyear, covering the period from January 1, 2023, toDecember 31, 2023. To enhance the readability of thereport, some content or data may trace back to previousyears or look forward to subsequent years. Unlessotherwise stated, this report uses the RMB as the currencyunit.
Report Preparation StandardsThis report was prepared in accordance with the
"Guidelines for Environmental Information Disclosure ofListed Companies" required by the Shanghai StockExchange; it references the Global Reporting Initiative (GRIStandards 2021) and the "Environmental, Social andGovernance Reporting Guide" published by the Hong KongStock Exchange. It is also compiled in reference to theSustainable Accounting Standards Board (SASB) and therecommendations framework of the Task Force on Climate-related Financial Disclosures (TCFD).
Information SourceUnless specifically stated, the data in this report comesfrom the company's periodic or interim disclosures. If thereare discrepancies, please refer to the disclosed periodic orinterim announcements. Other data comes from thecompany's internal management systems and statistics,including some historical data. The company assures thatthere are no false records, misleading statements, ormaterial omissions in the content of this report.
Appellation DescriptionFor ease of expression and reading, the terms "First," "thecompany," "we," and "our" in this report all refer toHangzhou First Applied Materials Co., Ltd. and itssubsidiaries.
Report Instructions
Disclaimer
Report AccessThis report is available for download in electronic formatfrom the Shanghai Stock Exchange (www.sse.com.cn) andHangzhou First Applied Material Co., Ltd.'s website(www.firstpvm.com). This report is available in both Chineseand English. In case of discrepancies or ambiguitiesbetween the Chinese and English interpretations, thecontent in the Chinese version shall prevail. For furtherinquiries, questions, or suggestions regarding this report,please contact:
Hangzhou First Applied Material Co., Ltd.
Address:No.8 Fusite Street, Lin'an, Hangzhou, ChinaTel: 0571-61076968Email: first-zqb@firstpvm.com
This report contains forward-looking statements,including business plans and development strategies.These statements reflect the company's predictions offuture events based on the current situation and may beinfluenced by unknown and uncertain factors thatmaterially differ from the actual results. No forward-looking or expected statement in this report constitutes amaterial commitment by the Company to investors.
2023 ESG Report
Letter from the Chairman
In the past year, the global challenges of climate change have become increasingly severe and urgent.At the same time, technological advancements are focusing more on digitalization, intelligence, anddecarbonization. There is a growing interest among stakeholders in sustainable development and ESG-related performance, which raises higher demands for transparency in our operations and ESGdisclosures. Against this backdrop, we have been actively and decisively embracing these changes inour own way, always viewing ESG and sustainability issues from the perspective of growth andopportunity and vigorously driving our corporate responsibility and sustainability work.We have enhanced decision-making efficiency and transparency by building and upgrading our
corporate governance structure. In 2023, we strengthened our internal controls and business ethics. Wealways practice the people-centric philosophy and have strategically invested in DEI (Diversity, Equity,and Inclusion) initiatives. In 2023, our employee dormitory came into operation, providing integratedservices of accommodation, dining, and leisure for over a thousand employees. We have investedsignificant resources to ensure comprehensive protection for our employees, including professionaldevelopment, health and safety, and various incentives.We proudly ranked among the top 50 innovative companies in Forbes China in 2023, continued toincrease our R&D investment, and enhanced our drive for innovation, achieving new breakthroughs inour fields of photovoltaic materials, electronic materials, and functional films. We are actively pushing forthe development of digital, intelligent, and green concepts and technologies, improving the efficiency ofcorporate production and operations, enhancing creativity and competitiveness, and providing reliable
products and services.Looking ahead, we will remain committed to the business tenet of "innovative technology for the future"and our core mission of being a technology leader in the industry. Leveraging our advantages in the PVindustry, we will promote the integrated use of solar energy in various forms to actively support thenational "dual carbon" goals and foster the development of green and sustainable endeavors. We willfurther explore fields with broad growth prospects, such as electronic material and water treatmentmaterial, focusing on the independent R&D and industrialization of high-polymer new materials, andstrive to promote technological innovation and application in the global clean energy industry.
2023 ESG Report
About FIRST
Conducting electronicmaterial business, includingDry FilmPhotoresist, FCCL,
and Photosensitive Solder
Resist.Applications include graphicetching of PCB, andinsulation protection of softboard substratesand fine
circuit.
Responsible for thebusiness of functional filmmaterials such asAluminum Laminated Film
and RO Membrane
Support Fabric.Applications include the
flexible packaging oflithium batteries and the
support of waterpurification membranes.
Responsible fordeveloping small groundpower stations, industrial
and commercial, andhousehold distributedpower station business.
Responsible fordeveloping photovoltaicbusiness such as PVFilm and PV Backsheet.
Applications include
encapsulating,enhancing efficiency,and protecting PVmodules.
Zhejiang new energydevelopmentCo.,Ltd. and itssubsidiaries
Suzhou FIRSTChuzhou FIRST
Jiaxing FIRSTGuangdong FIRSTThailand FIRSTVietnam FIRST
PV GenerationBusiness
PV MaterialDivision
Functional FilmDivisionElectronic Material
DivisionHangzhou FirstElectronic Material
Co.,Ltd. and its
subsidiaries
Hangzhou FirstFunctional Material
Co.,Ltd
Hangzhou First Applied Material Co.,Ltd.
Development Strategy: Focus on the main PV business, and vigorously develop other new material industries.
Development Vision: To become a world-class materials supplier.
2023 ESG Report
Jiaxing
Anji
SuzhouChuzhou
Jiangmen*HuizhouJi’anSuiningElectronic Materials
Haiphong,Vietnam*Overseas base
PV Products
Hangzhou Headquarters
Hangzhou HeadquartersPV Film & PV BacksheetPV Film Production BaseElectronic Materials
* Under construction
Lascha,Thailand
Jiangmen*
Hangzhou Headquarters
Chuzhou FactorySuzhou Factory
Thailand Factory
Vietnam Factory
Jiangmen Factory
Anji Factory
Jiaxing Factory
About FIRST
SoftwareCompany
PV FilmElectronic MaterialsFunctional Materials
2023 ESG Report
2023 Key Performance and Awards
WemainlyengagedintheR&D,production,andsalesofPVFilm,PVBacksheet,andPhotosensitiveDryFilm.WearethelargestsupplierofPVfilmsglobally,withamarketshareofabout50%.Weoffertherichestproductlinethatcanmeettheencapsulatingrequirementsofvarioustypesofcrystallinesiliconcellsandthin-film
modules.ThecumulativeshipmentsofourPVfilmscanencapsulateover850GWofPVmodules.
Revenue(RMB billion)
22.589
18.877
12.858
202320222021
1.850
1.579
2.197
202320222021
1.850
1.579
2.197
202320222021
15.590
13.981
12.176
202320222021
15.590
13.981
12.176
202320222021
21.836
20.195
13.688
202320222021
21.836
20.195
13.688
202320222021
Net Profit(RMB billion)
Net Asset(RMB billion)
Total Asset(RMB billion)
2023 ESG Report
?National Green Factory?Forbes China Top 50 Innovative Companies 2023?China Photovoltaic 20 Years Innovation PioneerAward?Zhejiang Province Technology Leading Enterprise
2023 Key Performance and Awards
?Zhejiang Province's First Batch of Eagle Enterprises?Dry FilmPhotoresist Products Recognized as
Zhejiang Province's First Batch of New Materials?Hangzhou "Future Factory"?Hangzhou Headquarters Enterprise
2023 ESG Report
Response to UN Sustainable Development Goals
EnvironmentalProtection
Environmental Management SystemCertification & Energy Management
Green OperationsEmission & Waste Management
Chemical SafetyWater ConservationResponse to Climate Change
CreatingValue
Product DevelopmentIntellectual Property ProtectionSupply Chain Management
Our commitment to supporting and aligning with the United Nations Sustainable Development Goals (SDGs) isunwavering, ensuring our operations advance in concert with the global sustainability agenda. Our strategy ismethodically structured around four core themes: Environmental Protection, Creating Value, Employee andSocial Care, and Corporate Governance. We diligently identify intersections with the SDGs, embracing a rangeof objectives that includes Gender Equality, Industry, Innovation, and Infrastructure, Responsible Consumptionand Production, responsible consumption and production practices, and Climate Action, among others,comprising a total of 16 targeted goals.
2023 ESG ReportStakeholderCommunication
Materiality Assessmentfor ESG IssuesResponse to UN SustainableDevelopment Goals
R&D InnovationSystem
Response to UN Sustainable Development Goals
Employee andSocial Care
Equality and DiversityEmployee Training and DevelopmentOccupational Health & Safety Management
Compensation and BenefitsUnion Management
Social Responsibility
CorporateGovernance
ESG GovernanceCorporate Governance Structure
Standard OperationRisk Management and Internal Control
Business Ethics
This report crystallizes our sustainable development ethos, reflecting our resolute commitment to the globalsustainability trajectory. FIRST believes that through concerted, collaborative efforts with all stakeholders, aformidable collective force can be cultivated on a global level. This concerted effort is instrumental in addressinga spectrum of challenges within the ecological, social, and economic realms, fulfilling the SustainableDevelopment Goals as envisioned by the United Nations, and contributing to a sustainable future for our planet.
2023 ESG ReportStakeholderCommunication
Materiality Assessmentfor ESG IssuesResponse to UN Sustainable
Development Goals
R&D InnovationSystem
? Strengthen the core competitivenessof the business? Fulfill information disclosureobligations in a timely manner? Improve internal control management
? Periodic reports andinterim announcements? Investors exchange eventssuch as performancepresentations? Consistent and stable returnon investment? Understand the company'soperations? Sustainable development
Supplier
Government
Customer
Employee
MaindemandsShareholder
Stakeholder CommunicationIn advancing sustainable development, we prioritize engaging with stakeholders. We continuously refine the types andmethods of their involvement, promptly collect and organize feedback from all parties, and take responsive measures tofulfill stakeholder cooperation and collectively enhance communication mechanisms. We actively listen to stakeholders,understanding their concerns and recognizing their reasonable expectations.Our goal is to grow alongside ourstakeholders through diverse communications.Types ofstakeholders
Main responsemeasures
Main communicationmethods
Community andenvironment
? Improve employee recruitment,training, promotion and other systems? Continue to optimize thecompensation and welfare system? Enrich staff activities? Strengthen occupational health andsafety management
? Staff congress? Learning and trainingactivities? Employee care activities? Corporate website andWeChat public account
? Decent working conditions? Broad career development? Excellent compensation andbenefits? Perfect health and safetyguarantee
? Implement a customer-first businessapproach.? Strengthen the core competitiveness? Continue to carry out R&D innovation
? Enhance our overall operationalefficiency.
? Customer service
? Technical exchange? Industry exhibition? New product launch? Stable and safe product? Competitively priced products? Solve quality problems quickly? Provide excellent customerservice
? Implement bidding procedures? Establish a list of qualified suppliersand conduct annual audits? Sign the integrity and self-disciplineletter? Pay attention to suppliers' demands? Win-win cooperation
? Supplier conference? Supplier annual audit? Integrity report platform? Fair competition? Fulfill the contract on time
? Provide jobs and pay taxes? Cooperate with governmentinspection work? Improve internal compliancemonitoring? Ensure compliance withenvironmental, safety, and integritylaws and regulations
? Compliance operation? Pay taxes in accordancewith law? Government data reports? Government relatedmeetings? Accept governmentscrutiny
? Drive the development oflocal and surroundingindustries? Operate legally and incompliance
? Operate legally and in compliance? Manage “three wastes”? Promote lean production? Fulfill social responsibilities
? Publish ESG report? Accept social supervision? Environmental protection? Energy conservation and
emission reduction? Good neighborliness? Public charity
Types ofstakeholders
2023 ESG ReportStakeholder
Communication
Materiality Assessmentfor ESG IssuesResponse to UN SustainableDevelopment Goals
R&D InnovationSystem
Materiality Assessment for ESG Issues
StakeholderEngagement
Wemaintaincommunicationwithstakeholders,includinginvestors,customers,suppliers,governmentagencies,etc.,recordingandorganizingESGissuesofconcern.Basedoncommunicationresultswithstakeholders,ESGratings,GRIstandards,andindustrybenchmarking,wecollectandidentifyrelevantESGissues.WeassessESGimpactsonthecompanythroughexchangeswithexternalstakeholderslikeinvestmentinstitutionsandbysurveyingandinterviewingmanagementanddepartments.SimilarESGfactorsarecategorized,andprioritiesofESGissuesaredeterminedbasedonassessmentresults,initiallydrawingupamaterialitymatrix.TheStrategicandSustainableDevelopmentCommitteeconfirmstheprioritylevelsofkeyESGissues.
IdentificationAssessmentPriorityDeterminationConfirmation
Material Issue Assessment Process
Materiality Matrix
We have assessed each issue anddetermined its priority based on theresults of comprehensive internalinterviews and the feedback fromstakeholders, with the finalconfirmation by the Committee onStrategy and SustainableDevelopment. Taking into accountthe substantive extent of theseissues, we have constructed anESG Materiality Matrix. This matrixunfolds across two dimensions: "theimportance of the issue to ourcompany" and "the importance ofthe issue to stakeholders," laid outas the horizontal and vertical axes,respectively. The main ESG issuesare presented within the matrix in 3levels of importance: high, medium,and low.
High
Medium
Low
| Labor StandardsEmployee Training and DevelopmentPublic Welfare and Social ResponsibilityBusiness EthicsInformation Security and Data PrivacyIntellectual Property ProtectionR&D InnovationRisk ManagementCorporate Governance LevelInformation Disclosure | ||
2023 ESG ReportStakeholder
Communication
Materiality Assessment
for ESG IssuesResponse to UN SustainableDevelopment Goals
R&D Innovation
System
R&D innovation systemThe development of innovative technologies has always been the primary driving force behind oursustainable development. Whether in the photovoltaic materials business or other new materials ventures,each technological breakthrough we've achieved in over two decades of industrial exploration stems frompersistent R&D and innovation. This has established us as a technology innovation enterprise with aprofound R&D DNA.As of December 31, 2023, our R&D technical staff numbered 701, with approximately 17% holdingmaster's degrees or higher. The proportion of R&D technical staff to the total number of employees isabout 15%. We always prioritize R&D investment. In the fiscal years of 2021, 2022, and 2023, thecumulative R&D investment amounted to RMB 454 million, RMB 645 million, and RMB 792 million,respectively, with a compound annual growth rate of 32.14%, continuously maintaining a leading positionin the industry.
FIRST Advanced Material R&D Institute
2023 ESG ReportStakeholderCommunication
Materiality Assessmentfor ESG IssuesResponse to UN SustainableDevelopment Goals
R&D InnovationSystem
R&D Innovation System
We are a platform-type material enterprise. Since the successful development ofEVA film in 2003, we have been deeply rooted in the PVmaterial field for over20 years, carrying out thorough research on the formula, process, andequipment of PVfilms and backsheets. In recent years, building on a keycommon technology platform, we have continuously researched and developednew material products such as electronic materials and functional materials,
possessing strong internal growth momentum. In the future, we will steadfastlyimplement the development strategy of "Focus on the main PV business, andvigorously develop other new material industries," driven by technologicalinnovation to achieve the domestication of more key new materials.
Material Research and Development
We have always independently developed and constructed film production equipment,mastered core design and manufacturing technologies, with a strong team of over 200people, and a systematic professional talent training system to meet the equipmentconstruction needs of production bases globally. Upholding the business tenet of "innovativetechnology for the future," we continuously provide technological breakthroughs for variousproducts in terms of R&D, quality, and efficiency, serving the differentiated requirements ofcustomers and markets. Focusing on the innovative development of equipment automationand digitization, we have deepened applications in production, storage, energy, and otheraspects, adapting to the trends of industry development. With sustained investment andcultivation in equipment technology, coupled with the dual advantages of equipment andproduct technology, we remain our core competitiveness.
Equipment manufacturing
at Vietnamsite
Software Development
Hangzhou First ApplicationSoftware Co., Ltd.
R&D
2023 ESG ReportStakeholder
Communication
Materiality Assessmentfor ESG IssuesResponse to UN SustainableDevelopment Goals
R&D InnovationSystem
GreenOperations
Emission & WasteManagementEnvironmental Management
System Certification& Energy Management
ChemicalSafety
Energy Management SystemEnergy Efficiency Publicity
Environmental Management System Certification& Energy Management
No.
SystemSystem Name
Hangzhou
FIRST
Suzhou
FIRST
Chuzhou
FIRST
AnjiFIRST
JiaxingFIRST(New)
ThailandFIRST
OperationalSubsidiaryCoverage
Ratio
In alignment with corporate objectives to bolster energyconservation and reduction, we have instituted anEnergy Management Leadership Team and enactedthe "Energy Conservation and Consumption ReductionSystem." A structured leadership hierarchy, consisting
of a leader, deputy, and team members, ensures the
achievement of our energy efficiency goals. The teamleader devises energy-saving policies, oversees energyand environmental planning, and report compilation.The deputy enacts technological energy-savingmodifications and oversees annual energy plans,promoting innovative technologies and organizingtraining. Team members, from workshop and officemanagement, are tasked with implementing these plansand supervising energy use, focusing on enhancingefficiency.
We pursue relentless energy conservation publicity,deepening employees' awareness through focusedtraining, adapting energy-saving practices to our offices
and production scenarios. Our strategies encompassoptimizing air conditioning and building insulation toreduce energy usage, using precise data to highlight thenegative impacts of sub-optimal temperature control andair leaks on energy efficiency, encouraging the adoptionof effective energy-saving measures; and promoting theuse of cooling water instead of chilled water, as well asthe proper selection of electrical equipment, to reduceoperating costs and enhance energy efficiency. Thesepractices reflect our firm commitment to improving energymanagement and supporting sustainable developmentgoals, embodying the culture of energy conservation that
emphasizes both professionalism and action.
WaterConservation
Response toClimate Change
2023 ESG Report
Environmental Management System Certification& Energy Management
Our commitment to energy efficiency is evidenced by diverse, innovative conservation measures that have led to significantenhancements in energy efficiency and cost reduction. Optimizations in production line process, cooling systems, as wellas cooling tower operation strategies, have yielded notable energy savings.
Energy-Saving Renovations Cases
Chilled Water Supply RenovationIn the existing system, the refrigeration processwas inefficient, employing a method thatconsumed a substantial amount of energy. Toimprove this, we have enhanced the refrigerationmethod to be more efficient and successfullyincreased the system's energy utilizationefficiency by adjusting the temperaturedifferential in the cooling cycle and reducing theuse of certain equipment.
Cooling Tower Renovation
In the original design, the capacity of the coolingsystem was configured higher than the actualdemand, leading to a certain degree of energywastage. To address this issue, we adjusted theoperational strategy of the system, enabling thecooling equipment to operate only whennecessary, thereby reducing unnecessary energyconsumption. This adjustment has helped uscontrol temperatures more effectively andachieve energy savings throughout the system.
2023 ESG Report
GreenOperations
Emission & Waste
ManagementEnvironmental ManagementSystem Certification& Energy Management
ChemicalSafety
WaterConservation
Response toClimate Change
Green Operations
As the world advances towards "Carbon Peak" and "Carbon Neutrality," solar power generation is set tosignificantly increase its share in the new energy-dominated power systems of the future. We are firmlyimplementing the development strategy of "Focus on the main PV business, and vigorously develop other newmaterial industries." Leveraging our advantages in technology research and development as well as cost control,we will accelerate the capacity expansion of PV films and backsheets, stabilize the market pattern of the PV filmindustry, and continue to consolidate and enhance our market share while growing alongside the global PVindustry. Additionally, we actively practice the "SOLAR FOR SOLAR—Negative Carbon Earth" concept, which,apart from constructing distributed power generation systems on our factory roofs, also involves setting up abusiness division dedicated to developing various types of solar power stations. In the next 3 to 5 years, weanticipate an annual capital expenditure of 500 million to 1 billion RMB for the construction of PV materials andsolar power station businesses.
Jiangshan AgrivoltaicPower Station
Chuzhoufactory PV power stationBeijing household PV power station
Green Energy Investment
2023 ESG Report
GreenOperations
Emission & WasteManagementEnvironmental ManagementSystem Certification& Energy Management
ChemicalSafety
WaterConservation
Response toClimate Change
Green Operations
We place high importance on the conservation of natural resources and strictly adhere to the "Environmental ProtectionLaw of the People's Republic of China," the "Environmental Impact Assessment Law of the People's Republic of China,"the "Water Law of the People's Republic of China," the "Energy Conservation Law of the People's Republic of China," andother national and local laws and regulations. We place resource conservation at a key position in our developmentstrategy and operational methods, continuously improving our management systems in energy consumption, optimizingenergy-saving measures, and committed to continuous monitoring and improvement of our energy and resource efficiency.We aim to build a resource-conserving, environmentally friendly enterprise and strive for a harmonious and sustainabledevelopment of people, resources, and the environment.In 2023, the operating income from our clean technology products (PV materials) accounted for 96.54%.
Year202320222021
Environmental protectioninvestment(ten thousandRMB)
6,861.083,618.742,193.73
We consistently implement theconcept of "water conservation,"following the guidance of localnatural resource conservationagencies, and develop waterusage plans based on actualconsumption, actively promotingwater-saving measures and
continually reducing waterresource consumption. In 2023,our main water supply came frommunicipal water, with a freshwaterwithdrawal of approximately928,200 tons and a wastewaterdischarge of about 266,000 tons.
We actively explore the recyclable use ofby-products generated in the productionprocess, turning waste into treasure. In2023, steam generated from theproduction of electronic materials waschanneled through pipes to functionalmaterial equipment, coordinatingresources between two different businessdivisions, saving on steam treatmentcosts for electronic materials on one hand,and solving the steam source required forthe production of functional materials onthe other. This innovative use of energy,due to its significant effect, was selectedas an excellent case for the company'scost-saving measures that year. In 2023,the company achieved a steam reuse of2,939 tons.
We actively practice the concept ofenergy conservation and reduction,creating a green and environmentallyfriendly office model, and striving tobe a faithful practitioner in building a"resource-saving" society. We fullyutilize the OA system to promoteelectronic office work and approval,
effectively reducing paper usage. Westrictly enforce waste sorting intorecyclable, putrescible, other, andhazardous wastes, identifying andprocessing recyclable office waste.We have invested in high-gradeshredders and other equipment,facilitating the recycling processwhile ensuring the confidentiality ofoffice document information.
ResourceConservation Case
InnovativeUtilization Case
Green Office Case
2023 ESG Report
GreenOperations
Emission & WasteManagement
Environmental ManagementSystem Certification& Energy Management
ChemicalSafety
WaterConservation
Response toClimate Change
Emission & Waste Management
We adhere to laws and regulations such as the"Environmental Protection Law of the People's Republic ofChina," the "Air Pollution Prevention and Control Law of thePeople's Republic of China," the "Water Pollution Preventionand Control Law of the People's Republic of China," and the"Solid Waste Pollution Environmental Prevention Law of thePeople's Republic of China." We have established internalsystems such as the "Environmental ProtectionManagement Responsibility System," "Environmental/SafetyOperation Control Procedures," and "Hazardous ChemicalsManagement System." We have set up emissions such aswaste gas and wastewater monitoring plans and goals,strengthened the management of waste emissions, andimproved the level of pollution prevention and control.We have been honored with titles such as the NationalGreen Factory of 2022, Zhejiang Green Enterprise issued byZhejiang provincial government, and Zhejiang Green Factoryissued by the Zhejiang Provincial Department of Economyand Information Technology.
c
Wepayattentiontothecomplianceofwastedisposal,especiallythestandardizedmanagementofhazardouswaste,andweregularlyorganizehazardouswastemanagementtrainingtoletemployeeshaveacorrectunderstandingofhazardouswaste,toachievecompliance
Emission & Waste Management Training
2023 ESG Report
GreenOperations
Emission & Waste
Management
Environmental ManagementSystem Certification& Energy Management
ChemicalSafety
WaterConservation
Response toClimate Change
Emission & Waste Management
Emission & Waste Monitoring Plan and TargetEmission & Waste
Monitoring Plan
Emission & Waste Management Target
| Frequency | Time |
Achievement ofTargets
Achievement ofTargets
2022 Annual-Outsourced
2022 Annual-Outsourced
Testing
Waste GasEmissions comply with the "Emission Standard of Pollutantsfor Synthetic Resin Industry" (GB31572
Emissions comply with the "Emission Standard of Pollutantsfor Synthetic Resin Industry" (GB31572
-2015);
Annually
MidJuly2022
Targets met and
standards
complied
Wastewater
Wastewater
Wastewater discharge complies with the standards in theNetwork Admission Opinion Letter / "Pollutant EmissionStandards for Urban Wastewater Treatment Plants"(GB18918
Wastewater discharge complies with the standards in theNetwork Admission Opinion Letter / "Pollutant EmissionStandards for Urban Wastewater Treatment Plants"(GB18918
-2002) Class A standards before discharge;
Noise
Boundary noise emissions comply with the 2nd classstandards in the "Emission Standard for EnvironmentalNoise of Industrial Enterprises at Boundary" (GB12348
Boundary noise emissions comply with the 2nd classstandards in the "Emission Standard for EnvironmentalNoise of Industrial Enterprises at Boundary" (GB12348
-
2008), and the eastern boundary reaches the 4th classstandard limits.
2023 Annual-Outsourced
2023 Annual-Outsourced
Testing
Waste GasEmissions comply with the "Emission Standard of Pollutantsfor Synthetic Resin Industry" (GB31572
Emissions comply with the "Emission Standard of Pollutantsfor Synthetic Resin Industry" (GB31572
-2015);
Annually
MidJuly2023
Targets met andstandardscomplied
Wastewater
Wastewater
Wastewater discharge complies with the standards in theNetwork Admission Opinion Letter / "Pollutant EmissionStandards for Urban Wastewater Treatment Plants"(GB18918
Wastewater discharge complies with the standards in theNetwork Admission Opinion Letter / "Pollutant EmissionStandards for Urban Wastewater Treatment Plants"(GB18918
-2002) Class A standards before discharge;
Noise
Boundary noise emissions comply with the 2nd classstandards in the "Emission Standard for EnvironmentalNoise of Industrial Enterprises at Boundary" (GB12348
Boundary noise emissions comply with the 2nd classstandards in the "Emission Standard for EnvironmentalNoise of Industrial Enterprises at Boundary" (GB12348
-
2008), and the eastern boundary reaches the 4th class
standard limits.
Emission & Waste Targets
c
2023 ESG Report
GreenOperations
Emission & Waste
Management
Environmental ManagementSystem Certification& Energy Management
ChemicalSafety
WaterConservation
Response toClimate Change
Emission & Waste ManagementInaccordancewiththe'HazardousWaste(SolidWaste)ManagementRegulations',thetypeofwasteisjointlydeterminedbytheuserdepartmentsandtheEHSdepartment.Forwasteidentifiedashazardous,weensurepropercollection,transfer,storage,andmanagement,andentrustittoqualifiedhazardouswastedisposalentities.We implement appropriate waste management and emission monitoring across all locations of operations.
Main Types of Waste and Disposal MeasuresType of WasteCategories of WasteDisposal Method
Hazardous Waste
Waste engine oil, thermal oil
All entrusted to a qualified third party for disposal.Waste packaging drums
Waste labor protection supplies
Laboratory waste
Sludge from biochemical pools,
etc.
Recyclable Waste
Waste wood
Collected, disposed of by a qualified waste recycling
company, or internally recycled, to promote a circular
economy.Waste cardboardWaste paper tubesWaste plasticWaste metals, etc.Waste strapping, etc.
Non-recyclable Waste
Insulation cotton
Entrusted sanitation departments for transportation
and disposal, with treatment and disposal measures
meeting environmental protection requirements.Air tubesLabels, etc.Domestic waste
Main Types of Waste and Disposal Measures
2023 ESG Report
GreenOperations
Emission & Waste
Management
Environmental ManagementSystem Certification& Energy Management
ChemicalSafety
WaterConservation
Response toClimate Change
Emission & Waste Management
We focus on clean production practices, continuouslyimproving each step of the production process toreduce resource consumption and waste generation.We also implement recycling initiatives, seeking tomaximize internal reuse and collaborating withcustomers to promote the recycling and reuse ofpackaging materials, thereby reducing environmentalimpact.
Recycled packagingmaterials category /Recycling quantity
by year
2022Recyclingquantity(thousands)
2023Recycling
quantity(thousands)
Wooden pallet6701,340
Plastic pallet150410
Paper tube9601,540Plastic tube1,0902,090Wooden liner/6,700
Source Management &Resource Circulation
In response to national initiatives to effectively controland reduce the environmental and human healthhazards of hazardous waste, we began using iron framepackaging for recycling purposes in August 2023,thereby reducing the output of waste cardboard boxes,wooden pallets, and other materials.From August 2023 to the end of the year, we purchased465 iron frame packages, which were recycled a total of3,398 times. On average, each frame was recycled morethan seven times per month. Each use saved theproduction of 2 cardboard boxes, 4 wooden boards, and1 wooden pallet. In 2023, this initiative saved a total of6,796 cardboard boxes, 13,592 wooden liners, and3,398 wooden pallets.
ChuzhouIron Frame PackagingRecycling Utilization Case
Cardboard boxes packaging
Iron frame packages
2023 ESG Report
GreenOperations
Emission & WasteManagementEnvironmental ManagementSystem Certification& Energy Management
ChemicalSafety
WaterConservation
Response toClimate Change
Chemical safety management is vital to corporate safety production management. We've developed systems in response tochemical management needs, including SOP-EHS-030 for managing chemicals susceptible to drug abuse and explosives, SOP-EHS-018 for dangerous chemicals, SOP-EHS-035 for hazardous waste, SOP-EHS-042 for ingredient hazardous chemicalwarehousing, SOP-EHS-040 for storage safety, and SOP-EHS-048 for safety information card management. We follow 'MSDSSafety Technical Requirements' related to these protocols. To standardize handling dangerous chemicals, we maintain QR-EHS-007 'Dangerous Chemicals Inventory,' overseeing their transportation, storage, labeling, use, waste management, and disposal tominimize environmental impact and personnel harm. We issue No.1 document annually to set forth safety managementrequirements, formulating annual safety targets for each aspect of chemical safety, and we achieved 100% of the set goals. In
areas involving chemical usage and storage, such as production and R&D, we enforce stringent regulatory measures, and maintainclear signage to mitigate risks. We employ experts to identify, purchase, use, and store chemicals, and organize relevant trainingperiodically. This ensures clarity on the procurement, storage, collection, and use of chemicals, and promote protective andemergency practices.
Responsibility
Executing Department
RegulatoryDepartment
DepartmentalResponsibilities
R&D Department: Identify and make optimal choices based on the characteristics of variouschemicals, responsible for updating, replacing, or phasing out chemicals, and for testing andhazard assessment of new chemical substances.
EHS Department
RegulatoryResponsibilityThe functionaldepartment for themanagement ofhazardous chemicals. Itis responsible forcompiling a list ofhazardous chemicalsand safety informationcards, managing andsupervising theexecution of hazardouschemical usageprocesses andpersonnelqualifications, andmanaging the recyclingand disposal of related
waste materials.Emergency HandlingEstablish emergencyresponse plans forhazardous chemicals,standardizing thehandling methods foraccidents of differenttypes and scales(including adsorption ofspills, cutting off leaks,organizing evacuations,etc.). When necessary,initiate emergencyplans and report to therelevant departments.
Procurement Department: Ensure compliance with laws and regulations governing theprocurement, transportation, and storage of hazardous chemicals. Source from supplierspossessing the "Hazardous Chemicals Production and Operation License," verify the transportationunit's qualification, and establish safety agreements with both supplier and transporter.
User Department: Complete the "Hazardous Chemicals Demand List" for approval and record bythe EHS department. Supervise hazardous chemical use, ensuring adherence to MSDS and properpersonal protective equipment. Maintain detailed records with the "Hazardous Chemicals In andOut Ledger," strictly following safety procedures, product instructions, and prevention measures.Properly collect and store chemical waste, collaborating with the EHS department to determinewaste type and develop compliant disposal plans, entrusting qualified suppliers for disposal.
| User Department: Complete the "Hazardous Chemicals Demand List" for approval and record by the EHS department. Supervise hazardous chemical use, ensuring adherence to MSDS and proper personal protective equipment. Maintain detailed records with the "Hazardous Chemicals In and Out Ledger," strictly following safety procedures, product instructions, and prevention measures. Properly collect and store chemical waste, collaborating with the EHS department to determine waste type and develop compliant disposal plans, entrusting qualified suppliers for disposal. |
| Quality and Storage Department: Conduct thorough safety and quality inspections during hazardous chemical storage, adhere to national laws and regulations for storage locations, prominently display warning signs, and maintain daily safety management of storage sites and surrounding areas. |
Documentary
Standard
| Procurement Department: Responsible for executing the chemical purchase and technical agreements, as well as establishing safety technical standards for raw materials. All suppliers must provide chemicals with MSDS documents and COA compliant with company regulations and national standards. |
| EHS Department: Tasked with formulating and inspecting rules and regulations pertaining to hazardous chemicals management, including the regular update of system documents. |
| User Department: Conducts operations in adherence to established standards outlined in documentation provided by the EHS Department and procurement agreements. |
Chemical
Labeling
User Departments: Must establish corresponding signs for the use of chemical labels.EHS Department: Establishes the corresponding signs.
EHS Department: Establishes the corresponding signs.
Supplier: According to the national standard 'Regulations for the Compilation of Chemical SafetyLabels' (GB 15258
-1999), safety labels must use a combination of text, graphic symbols, and
codes to indicate the hazards and safety precautions of chemicals; safety labels should be affixed,hung, or printed by the manufacturer in a conspicuous position on the packaging or containerbefore the goods leave the factory; if the packaging is changed, the changing unit must re
-affix,
hang, or print the labels.
Chemical Safety
Chemical Management
2023 ESG Report
GreenOperations
Emission & Waste
Management
Environmental ManagementSystem Certification& Energy Management
ChemicalSafety
WaterConservation
Response toClimate Change
Chemical IdentificationBased on the characteristics of chemicals, we have categorizedthem into three types: chemicals prone to being used for drug
and explosive production, hazardous chemicals, and otherchemicals. We manage strict identification and differentiationaccording to the "MSDS Safety Technical Requirements" foreach type of chemical.Chemical Elimination
1) Internally, the company is optimizing the use of highly
hazardous and toxic chemicals, with the R&D departmentresponsible for gradually researching phase-out or implementingreplacement plans.
2) In compliance with national laws, we strictly prohibits the use
of problematic chemicals, updating the catalog as perregulations. Following the June 2023 announcement by theMinistry of Ecology and Environment and 11 other departmentsregarding restrictions on five types of persistent organicpollutants, including Polychlorinated Naphthalenes, we'veassessed our chemical usage. Any identified chemicals havebeen investigated, and phased out in accordance withregulations.Chemicals Prone to Misuse for Drug and Explosive ProductionIn adherence to relevant laws such as the "People's Republic of China Narcotics Control Law," and "Regulations on theControl of Chemicals Used for Illicit Drug Production," we've established SOP-EHS-030 "Safety Management System forChemicals Prone to Misuse for Drug and Explosive Production, and Highly Toxic Dangerous Chemicals." There is strictmanagement in the production, operation, transportation, and storage of chemicals prone to being used for drug production,with one specially designated keeper with national qualifications for the safety management of chemicals used for illicit drugproduction and two part-time keepers responsible for related affairs. Chemicals are stored separately with a dual-lock system,and inventory records are meticulously maintained. Monthly inventory checks are conducted, and any issues are promptlyreported to local authorities. Emissions, wastewater, and waste residue are treated to meet national regulations, with nomixing allowed for disposal.Hazardous ChemicalsWe adhere to the "Regulations on the Safety Management of Hazardous Chemicals" and have established SOP-EHS-018"Hazardous Chemicals Management System." Precise control is maintained over procurement, transportation, storage, use,and disposal, guided by SOP-EHS-040 and SOP-EHS-048.Other Non-Hazardous ChemicalsNon-hazardous chemicals are managed according to company standards, with the R&D department identifying materialcharacteristics, the EHS department outlining management requirements, and the user department overseeing daily safetymanagement.
Chemical SafetyChemical Identification and Elimination
Chemical Registration and Supervision
2023 ESG Report
GreenOperations
Emission & WasteManagementEnvironmental ManagementSystem Certification& Energy Management
ChemicalSafety
WaterConservation
Response toClimate Change
Our company engages in-depth with leading globalraw material suppliers, aligning introduction andassessment with the ISO 9001:2015 QualityManagement System. We implement the QSP-PM-841 "Supplier Management Control Procedure" toregulate supplier selection, assessment, performanceevaluation, and improvement processes, ensuringcontinuous compliance with our requirements.Chemical raw material suppliers are vetted through amulti-step process for inclusion in the "QualifiedSupplier Directory": supplier qualification review →sample assessment → pilot assessment → semi-industrial assessment → change review → supplieraudit (factory inspection) → qualified supplier; theQSP-PM-840 "Purchasing Control Procedure"determines purchase volumes based on supplierassessment categories and levels. Our primary rawmaterials, such as Ethylene-Vinyl Acetate Copolymer(EVA) and Polyolefin Elastomer (POE), have beensourced for years through procurement cooperationwith global leaders like Dow Chemical, LG Chem, andExxonMobil, with whom we also engage in in-depthscientific research for new product development andapplication.
Chemical Safety
New Substance Hazard Assessment
Collaboration with LeadingSubstitute Material Producers
Our assessment of new substance hazards focuseson human health impacts and environmental risk.We begin by identifying characteristics such asphysicochemical properties, toxicology, and hazards.Then, we determine potential harms by analyzingdata to identify short-term or long-term effects,including direct health impacts or potentialenvironmental harm. Finally, we devise controlmeasures based on these assessments, includingstorage, workplace standards, personal protectiveequipment, and environmental safeguards.We've established a robust system for assessingand introducing chemical substances. Our main rawmaterials undergo an "Raw Material IntroductionProcess," and special additives through an "AdditiveIntroduction Process," with hazard assessmentbeing a critical step involving collaboration acrossEHS, R&D, quality, process, production, andprocurement departments.
2023 ESG Report
GreenOperations
Emission & WasteManagementEnvironmental Management
System Certification& Energy Management
ChemicalSafety
WaterConservation
Response toClimate Change
Water Conservation
Source ManagementWe analyze the current exploitation of water resources, the rationality of water usage,potential impacts, and protective measures in our operational regions, takingreasonable water extraction measures post-assessment. Continuous monitoring ofwater use risks and emergency planning are conducted to ensure water resourcescan support our long-term growth. In 2023, our fresh water extraction amounted toapproximately 928,200 tons.
Water Conservation and Discharge ReductionWe segregate wastewater into industrial and domestic categories, each treatedaccordingly. Industrial wastewater, mainly from production line cooling, equipmentcleaning, and floor maintenance, is fully recycled when possible, with non-recyclablewastewater treated to meet standards before discharge. Domestic wastewater isdisposed of through municipal sewage networks. In 2023, we dischargedapproximately 266,000 tons of wastewater.Water Conservation Case: Recirculating Water Quality Control to Reduce WastewaterPreviously, our cooling tower open-loop recirculating system had high waterconsumption, with scaling from calcium and magnesium ions, as well as bacteria andalgae growth affecting cooling exchange and corroding pipes. We addressed this byusing softened water for make-up and controlling conductivity, which reduced scalingand wastewater discharge, saving water.
Product InnovationLeveraging our capabilities in high-polymer material research and manufacturing, wedeveloped a range of membrane support fabrics for water purification with variousweights, thicknesses, and permeabilities. These materials, used for reverse osmosis,nanofiltration, ultrafiltration, and microfiltration membranes, are widely applied inseawater desalination, industrial pure water production, municipal and industrialwastewater treatment, and household water purification, fundamentally enhancingthe utilization and protection of water resources.
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GreenOperations
Emission & Waste
Management
Environmental ManagementSystem Certification& Energy Management
ChemicalSafety
WaterConservation
Response toClimate Change
Response to Climate Change
The main energy consumed in our production process iselectricity, and in 2023 we consumed about 512 million kWh.By the end of 2023, we have 37.59MW photovoltaic powerstations, which is equivalent to a reduction of 45,000 tons ofcarbon dioxide emissions through it if we calculate the coalconsumption per kilowatt hour. In 2023, the sales volume ofour PV film reached 2.249 billion square meters, which isable to produce 237GW PV modules. Based on the coalconsumption of kilowatt hour electricity, about 236 milliontons of carbon dioxide emissions can be reduced throughthe produced PV modules.
We acknowledge the profound impact of climate change onhuman society and the natural environment. The challengesit brings, like rising sea levels and extreme weather events,pose unprecedented challenges to global economicstructures and business operations. Hence, we view climatechange as a core strategic consideration, aiming to mitigateits adverse effects and actively seek opportunities tocontribute to society's transition to low-carbon, greendevelopment. As an active participant in the renewableenergy sector, our PV films backsheets, essential for moduleencapsulation and protection, not only optimize PVconversion efficiency but also significantly extend themodules' lifespan. Though our production activities consumeenergy, they translate into clean energy output through PVgeneration, offering environmental returns exponentially.We are committed to the sustainable developmentconcept of "SOLAR FOR SOLAR—Negative CarbonEarth," implementing energy conservation and emissionreduction in operations and optimizing our energy mix.Our technological innovation and green productdevelopment support and propel the industry and societytoward more sustainable development. For instance,we've built distributed power generation systems on ourfactory roofs to lessen traditional energy dependency,while also diversifying our business by developing varioustypes of photovoltaic stations. We believe such efforts notonly promote the widespread adoption of clean energyand contribute to global energy transformation and climatechange mitigation but also create new growthopportunities and value for our long-term development.
2023 ESG Report
GreenOperations
Emission & WasteManagementEnvironmental ManagementSystem Certification& Energy Management
ChemicalSafety
WaterConservation
Response toClimate Change
Risk Management
We adopt a systematic approach to identify, assess, andmanage climate-related risks and opportunities. Thisincludes a comprehensive assessment of physical risksand transition risks, as well as a deep understanding ofthe potential impact of these risks on business operations,financial conditions, and prospects. We strive to reducethe potential impact of these risks on the business throughsustainable resource management, chemical safety, andwaste emissions management. At the same time, weactively explore and utilize business opportunities broughtabout by climate change to promote the company's long-term sustainable development.Indicators & TargetsWe have identified a set of environmental and climate-related indicators to monitor and evaluate the impact ofour business activities on the environment and supportour climate-related risk management work. Theseindicators include energy usage (such as water resources,electricity, etc.) and waste emission conditions.
GovernanceWe have established the company's ESG governancestructure to ensure comprehensive monitoring andmanagement of climate-related risks and opportunities.The board of directors is directly responsible foroverseeing climate-related risks and opportunities, and wehave set up a specialized ESG working group responsiblefor executing specific ESG strategies and actions. Thisgroup collaborates across departments to assess thepotential impact of climate change on business operationsand provides regular reports and suggestions to the boardof directors. Furthermore, we regularly review and updateour assessment of climate-related risks and opportunitiesin accordance with the framework recommended by TCFD,ensuring our management measures stay aligned withindustry and international best practices.
Response to Climate Change
GovernanceStrategy
RiskManagement
Indicators &
Targets
Strategy
We have identified and assessed two main categoriesof climate-related risks: transition risks related to thelow-carbon economy transition and physical risksrelated to the impacts of climate change, includingacute risks (such as extreme weather events) andchronic risks (such as long-term changes in climatepatterns). Addressing climate change is not only aboutrisk management but also about seizing developmentopportunities. We are committed to developinggreener, low-carbon products and services throughtechnological innovation and production efficiencyimprovements to meet the challenges posed byclimate change.
2023 ESG Report
GreenOperations
Emission & Waste
Management
Environmental ManagementSystem Certification& Energy Management
ChemicalSafety
WaterConservation
Response toClimate Change
Response to Climate Change
Climate-related Risks(TCFD Framework)
Physical
risks
Acute risks
Extreme Weather Events: Events such as typhoons and floods can lead to supplychain disruptions, production halts, equipment damage, and damage to raw
material and finished product storage areas, affecting the stability of the supplychain and production efficiency.Extreme Heat Events: Frequent high temperatures can lead to equipmentoverheating and worsening storage conditions for products, increasing coolingcosts, and affecting employee health and production efficiency.Chronic risks
Climate Pattern Changes: Persistent warming may increase the energy demand ofcooling systems, leading to higher operational costs.
Transition
risks
Policy andlegal risks
Uncertainty in Energy Policy: The uncertainty of energy policies, such as changes
to support policies and incentives for renewable energy and related trade policies,
can affect a company's long-term investment decisions and market positioning.
Carbon Emission Restrictions: Governments may set stricter carbon emission limits,
requiring companies to reduce carbon emissions or purchase carbon credits, whichincreases the financial burden on businesses.
Technology and
market risks
Technological Innovation and Cost Competition: Technological advances within thePV industry could render existing products obsolete rapidly. Companies need tocontinuously develop new technologies to maintain competitiveness. At the sametime, effective cost control is key to maintaining product competitiveness.
Changes in International Market Access Thresholds: As global responses to climate
change strengthen, countries may set stricter import standards, requiring importedproducts to have a lower carbon footprint. This requires companies to optimizeproduction processes and supply chain management.
2023 ESG Report
GreenOperations
Emission & WasteManagement
Environmental ManagementSystem Certification& Energy Management
ChemicalSafety
WaterConservation
Response toClimate Change
Intellectual PropertyProtection
Product DevelopmentSupply ChainManagement
Product Development"Customer First" is one of our core principles,and winning the trust and long-termcooperation of our customers is a vitalcornerstone for our company's development.We consistently adhere to a customer-orientedapproach, committed to providing excellentproducts and services.
Customer satisfaction has improved yearover year.
Customersatisfaction
2021 2022 2023
98.83%98.84%98.89%
2023 ESG Report
Photovoltaic Materials
A weather-resistant protectivematerial used on the backsideof solar modules.Photovoltaic BacksheetPhotovoltaic FilmUsed for encapsulating and protectingthe front and back of crystalline siliconsolar cell modules, as well as thepower generation layers of thin-filmsolar modules. Depending on the rawmaterials and manufacturingprocesses, it includes types such asEVA film, white EVA film, EPE film,and POE film.
Photovoltaic Module
Centralized PV Power Station
Product Development
Our Products
DownstreamApplication
TerminalApplications
Distributed PV Power Station-Business & Industry
Distributed PV Power Station-Residential Houses
2023 ESG Report
Intellectual PropertyProtectionProduct DevelopmentSupply ChainManagement
Product Development
A film material used for imagetransfer on rigid and flexibleprinted circuit boards, high-density interconnect boards,and packaging substrates.
An insulating protectivematerial used for fine circuitryin printed circuit boards,MiniLED, Micro-LED, andcamera module sectors.
The base material used forflexible printed circuit boards.
Photosensitive Solder ResistDry Film PhotoresistFlexible Copper Clad Laminate
Printed Circuit Board
Consumer Electronics
Our Products
DownstreamApplication
TerminalApplications
Electronic Materials
2023 ESG Report
Intellectual Property
Protection
Product DevelopmentSupply ChainManagement
Membrane Support Fabric
Product Development
Aluminum Laminated Film
Soft Pack Battery
A base material used to support waterpurification membranes.A multilayer composite material containingaluminum foil, used for the soft packaging oflithium batteries.
Water Purification Membrane
Consumer ElectronicsNew Energy VehicleEnergy Storage Power Station
DesalinationUrban Sewage Treatment
Functional Film MaterialOur Products
DownstreamApplication
TerminalApplications
2023 ESG Report
Intellectual PropertyProtectionProduct DevelopmentSupply ChainManagement
Intellectual Property Protection
Intellectual Property Management Department
Intellectual Property Training
2023 ESG Report
Intellectual Property
Protection
Product DevelopmentSupply ChainManagement
Intellectual Property ProtectionIntellectual Property Management Department
Intellectual Property Management System
2023 ESG Report
Intellectual PropertyProtectionProduct DevelopmentSupply ChainManagement
Supply Chain Management
2023 ESG Report
Intellectual PropertyProtectionProduct DevelopmentSupply ChainManagement
Equality and Diversity
EmployeeTraining andDevelopment
Occupational Healthand SafetyManagementEquality andDiversity
Compensationand Benefits
UnionManagement
SocialResponsibility
Production
staff
Salesstaff
Technicalstaff
Financial
staff
Administrative
staff
Total
Master’s degree
or above
Bachelor’sdegree
College degree
Secondaryeducation orbelow
Total
Age ≤3031-40≥41TotalMaleFemale
2023 ESG Report
Employee Training and Development
2021-2023 Training Data StatisticsYear
Total training sessions
organized
Total trainingparticipants
Total hours of training
Average hours oftraining per person20214777,02522,515.73.21202261710,03237,886.13.78202379815,52939,901.62.57Total1,89232,586100,303.43.08
Professional SkillsWe value professional skills and meet careerdevelopment needs. We actively respond togovernment calls to standardize the policy forrecognizing skill levels, applying to become a"Professional Skills Level Recognition Pilot" unit. Todate, we have successfully conducted threesessions where 130 quality inspectors achievedtheir level certifications. Employees enjoycorresponding pay grades based on their skill levelsas per our company's remuneration system. Wehave established a comprehensive management(M), professional (P, B, O), and operational (F)sequence covering all employees, thereby providingbroader development opportunities for careeradvancement across various levels and positions.
High-Level Talent
As of the end of 2023, our organization includes oneClass B talent, nine Class C talents, nine Class Dtalents, 43 Class E talents, 47 Class F talents, and44 Class G talents. Currently, the company employstwo senior professional title holders, 36 withassociate senior professional titles, 36 withintermediate professional titles, and 56 with juniorprofessional titles.
2023 ESG Report
EmployeeTraining andDevelopment
Occupational Healthand SafetyManagement
Equality and
Diversity
Compensation
and Benefits
UnionManagement
SocialResponsibility
Employee Training and Development"Qingteng" ProgramTo enhance the overall capabilities of our middle management team, welaunched the "Qingteng" program. We employed external experts to deliverlectures, providing comprehensive and multi-angle knowledge training andpractice transformation for our management staff. The project focuses on"goal-setting," "scheme-building", "implementation-grasping," and "results-sharing" and offers practical workshops to provide hands-on training. Thisapproach encourages active participation in learning and addresses actualworkrelatedkey points. This leads to improved enterprise performance andthe accomplishment of annual business objectives."Qingmiao" ProgramEmployees can systematically learn management knowledge, such as safety,quality, lean production, and team management. We have also organizedvarious activities, such as reading-sharing meetings, standard study tours,and outdoor activities. In addition, we also set up growth courses to enableemployees to better engage in work and study and make their abilityimproved throughout their lives. Employees acquire a broad range ofmanagement knowledge and apply it effectively to improvement projectsthrough the combination of theory and practice."Xinya" Program"Xinya" program offers basic courses such as corporate culture, quality,product knowledge, safety. And occupational courses like occupationalcommunication, career development are also offered. These learningcourses are combined with online cloud university courses and practicalactivities in order to make the fresh graduate to quickly adapt to the company,their position. This program also offers a platform for the participants tocommunicate their knowledge.Team Leader ProgramTo improve the management concept, knowledge, skills, and professionalquality of each workshop foreperson and promote and drive the overallquality of the production workshop staff, we organized the personneltraining project for the first-line foreman. The project trained and taught thecraftsmanship spirit, leadership, optimistic attitude, practical communicationskills, and other aspects of the front-line team leaders. Meanwhile, all front-line team leaders were required to carry out transfer training for front-lineemployees, and a total of 341 times of transfer training were implementedto learn and grow together.
2023 ESG Report
EmployeeTraining andDevelopment
Occupational Health
and SafetyManagementEquality andDiversity
Compensationand Benefits
UnionManagement
SocialResponsibility
Occupational Health and Safety Management
Employee physical examinationWe deeply care the health of employees and provide variousmedical health examinations and health consultation services everyyear to help employees to know their real time physical conditions,effectively implement health intervention measures, preventoccupational diseases, and enhance the sense of belonging andidentity of employees to the company.
Psychological counselingWe establish the "Mood Station", allocate the corresponding venuesand facilities, and introduce the online consultation service of mentalhealth experts. We offer the psychological support to the employeeswith abnormal mental conditions, through counseling and treatment,to make them timely released from the bad mood, get out of thepsychological predicament, face the life more positively.
New employee training
We design a series of training courses to help new employees getfamiliar with our company, learn the corporate culture, safety, 5S,quality, and other basic knowledge, understand and master jobknowledge and skills, accelerate the process of new employees'integration, promote them to enter the work state and complete therole transformation smoothly. New employee training coverage is100%.First-line mentorWe develop the first-line mentor training plan, make the experiencedemployees to fully play the role to help, transfer knowledge andsupport the new employees. In this way, the new employees couldadapt to their work quickly, understand the operating procedures,and establish a preliminary awareness of production safety. Up tonow, the company has completed two first-line mentor trainingprograms, with a total of 115 first-line mentors.
2023 ESG Report
EmployeeTraining andDevelopment
Occupational Health
and SafetyManagement
Equality and
Diversity
Compensation
and Benefits
UnionManagement
SocialResponsibility
Compensation and BenefitsWe strictly abide by the Labor Law of the People's Republic of China, the Labor Contract Law of the People's Republic ofChina, the Employment Promotion Law of the People's Republic of China, the Protection of Minors of the People's Republicof China and other relevant laws and regulations. We have formulated the Employee Handbook, Human Resources ControlProcedures, and other internal systems and adhere to legal and compliant employment. According to the relevant laws andregulations of the Ministry of Labor and Social Security and the local subsidiaries, employees to handle pension insurance,industrial injury insurance, unemployment insurance, medical insurance, and maternity insurance, and implement thehousing provident fund system. In 2023, our total compensation and benefits was 747.32 million RMB.
We follow the principles of "fair and ordered management,adapting to market environment, reflecting talent value,realizing the incentive goal." We foster sustainabledevelopment and achieve a mutually beneficial relationshipbetween employees and the company. We keep onevaluating the ability, contribution and work performance,set a salary promotion system, offer the promisingpromotional opportunities for each position. Additionally,we follow the "principle of ordered and sustainabledevelopment" by connecting employee compensation tothe company's overall income growth, sharingresponsibility and benefits, and realizing the individualimprovement of the organization. We continually improveour performance appraisal system, salary and welfaresystem, training management system, and employeedevelopment and promotion channels to motivate andguide employees towards improvement, achieving aharmonious development with the company.
Employee BenefitsMultidimensionalrewards
Employee stock ownership plan, project responsibility system reward, patent reward, rationalization
proposal reward, management innovation reward, technological progress reward, etc.Leavebenefits
Established the “Leave Management Methods” to provide employees with legal leave, including annual
leave, maternity leave, sick leave, marriage leave, nursing leave, childcare leave and other welfare leave.Otherbenefits
Free working meal, free shuttle bus, holiday gift, anniversary gift, birthday gift, expatriate allowance, annual
physical examination, talent apartment, sympathy allowance, union points exchange, Love Factory
dedication award (5, 10, 15, 20 years).
Compensation and benefits
202120222023Employee compensation(ten thousand RMB)39,168.2859,242.7074,731.73Including--Employee stock ownership plan incentive fund(ten thousandRMB)6,957.07Photovoltaic business Partnership Plan special fund (ten thousandRMB)5,492.96
Compensation policy
Except for the chairman and independent directors, we do notprovide directors' remuneration. Directors who also hold seniormanagement positions or other positions in the Company willbe compensated according to the remuneration system of theirrespective positions. The supervisors are not entitled to anyremuneration, but if they hold other positions in the Company.They will receive remuneration according to the remunerationsystem of those positions. The annual compensation of theCompany's senior management personnel comprises twocomponents: a basic monthly salary and an annualperformance-based bonus. The performance-based bonus ispaid in the following year, and its amount is determined basedon the Company's performance and the individual's workcontributions, as evaluated by the Compensation andEvaluation Committee. The remuneration of directors andsenior managers is reviewed by the Remuneration andEvaluation Committee of the Board of Directors, which submitsits recommendations to the Board of Directors for approval.The Board of Supervisors reviews the remuneration ofsupervisors, which is then submitted to the Board ofShareholders for approval.
2023 ESG Report
EmployeeTraining andDevelopment
Occupational Health
and SafetyManagement
Equality and
Diversity
Compensation
and Benefits
UnionManagement
SocialResponsibility
We consistently practice a "people-centric" approach to humanitarian care, with ongoing attention to our commitmentto and implementation of employee welfare. To better meet the accommodation needs of our employees, enhancetheir sense of belonging and satisfaction, and improve their quality of life, we engaged in thorough discussions andmeticulous planning. Consequently, the company constructed the 43,400 square meter "Fu Ren Ju" employeedormitory, which officially began operations in 2023. The dormitory offers 660 high-quality, eco-friendly fully furnished
suites, and single, and double rooms, providing a comfortable and homely environment for 1,200 employees.Located in the ecologically friendly and scenic area of JinmaVillage, the "Fu Ren Ju" employee dormitory providesemployees with a beautiful and comfortable living environment. Additionally, we have equipped the dormitory complexwith standard badminton and basketball courts, a gym, and facilities for dining and entertainment including anautomated cafeteria, a bakery, a supermarket, and parking. Furthermore, we have introduced an automated anddigital smart management system, aiming to create a comprehensive living and leisure community for our employees.
"Fu Ren Ju" Employee Dormitory
Basketball Courts
Compensation and Benefits
Single Room
CafeteriaSupermarket
Gym
2023 ESG Report
EmployeeTraining andDevelopment
Occupational Healthand SafetyManagementEquality andDiversity
Compensationand Benefits
UnionManagement
SocialResponsibility
Union management structure
We have one union president, 14 union committee members,two union officers, one union accountant, and one unioncashier. Under the leadership of the union president, there isa fund review committee and a Women Workers Committee.To ensure efficient operations, the union is divided into 10groups, each led by a trade union officer and with one tradeunion committee member designated to manage each group.Employees voluntarily join the union, which prioritizes thefunctions of representation, safeguarding, construction, andeducation to protect the legitimate rights and interests ofemployees.
Union ManagementWe have established a range of trade union managementsystems, such as the Measures for the Welfare Managementof Trade Union Members, the Measures for the Managementof Trade Union Points, and the employees' representativesconference, to uphold democratic management and protectthe legitimate rights and interests of employees. Our effortshave been recognized with the National May Day LaborCertificate issued by ACFTU(All China Federation of TradeUnions).
Name of unionAwardsIssuance unitUnion of Hangzhou First AppliedMaterials Co., LTD
The second batch of "HappinessCommunity Leading Goose Enterprises"
in Zhejiang Province
Issued by Zhejiang Federation
of Trade UnionsTrade Union of Suzhou First PVMay Day labor Award of Suzhou City
Issued by Suzhou City Trade
UnionTrade U
nion of First(Anji) Advanced
Materials Co., LTD
Enterprise New Era Five-Star Civilization
Practice Site
Issued by Anji CountyFederation of Trade Unions
Awards
In 2023, we held 2 employee representativesconferences and spent RMB 4.97 million on the union.
Work content of union
The union is dedicated to the well-being of employees,fostering harmonious labor relations at work, and promotingemployee participation in management innovation, laborcompetitions, and the recognition of advanced groups andactive union members. The union pays special attention tothe rights of female employees, establishing "MommyRooms" and purchasing special illness insurance for them.Additionally, throughout the year, the union organizesvarious cultural and sports activities, providing a platformfor talent display to enrich employees' leisure time.
2023 ESG Report
EmployeeTraining andDevelopment
Occupational Health
and SafetyManagement
Equality and
Diversity
Compensation
and Benefits
UnionManagement
SocialResponsibility
Social Responsibility
FIRST is driven by a sense of mission and responsibility. Beyond generating profits and meeting legal obligations toshareholders and employees, we also uphold responsibilities towards consumers, communities, and the environment.Our focus extends beyond profit to the value of people in production processes, emphasizing contributions to theenvironment, consumers, and society at large, and the fulfillment of corporate social responsibilities to contribute tosocietal well-being. We actively fulfilled our social responsibilities during the reporting period and donated RMB 2.04million RMB toward social welfare.
Tax ContributionsLawful tax payment is a duty for every enterprise and citizen. We take our taxplanning seriously, continually enhancing our tax risk management,strengthening administrative efforts, and perfecting our risk control mechanisms.We organize our tax accounting and payment efficiently, safeguard taxcompliance, mitigate operational risks, and ensure healthy business activities. In2023, our company renewed our "Tax Compliance Cooperation Agreement" withthe Hangzhou Taxation Bureau for the fourth time, constantly improving our taxrisk control system to foster an environment of honest business practices andlawful tax payment.
Charity and PhilanthropyCharitable work involves aiding the weak and impoverished, a voluntaryendeavor to enhance human welfare. We are committed to charitable causes,supporting vulnerable groups, and making donations to various public welfareorganizations through platforms like the Red Cross, Charity Federation, andeducation funds, increasing welfare for the disadvantaged.Rural RevitalizationThe countryside blends natural, social, and economic aspects, supportingproduction, living, and cultural activities, and forms a symbiotic relationship withurban areas as a key space for human activities. We support the national ruralrevitalization strategy by using our photovoltaic (PV) industry strengths to set upsustainable poverty alleviation methods. These include donating distributed PVsystems, buying agricultural products from BaiyuCounty, Sichuan for povertyrelief, and focusing on cultural development in rural areas, such as funding anethnic cultural stage in MiaoguVillage, DonglangTown, CongjiangCounty,Guizhou Province.Community EngagementEnterprises benefit from and influence their communities, which are vital forbusiness development. Establishing long-term, mutually beneficial partnershipsis crucial for maintaining a positive corporate image and sustainable growth. Wevalue our community ties, offering economic benefits and jobs through lawfuloperations and engaging in welfare projects, such as visiting the elderly duringthe Double Ninth Festival, donating to special funds for the elderly, supportingspecial needs children, donating school supplies to primary students, andcontributing to the Hangzhou Police Care Foundation to help maintain localsecurity.
2023 ESG Report
EmployeeTraining andDevelopment
Occupational Health
and SafetyManagement
Equality and
Diversity
Compensation
and Benefits
UnionManagement
SocialResponsibility
ESG Governance Structure
We continuously deepen our understanding of the ESGmanagement system, striving for its ongoing optimizationand improvement. To date, we have successfully establisheda comprehensive ESG governance structure with clear levels,defined roles and responsibilities, and an efficient operationalmechanism. This structure consists of three levels:
"governance, management, and execution," aimed atensuring the effective advancement and implementation ofESG initiatives.Within this framework, the Board of Directors holds thehighest governance responsibility, overseeing and managingESG matters at the company's highest decision-making level.Their key duties include setting the strategic direction forESG, supervising the implementation of ESG initiatives, andreviewing related reports, as detailed in the "Board Strategyand Sustainability Committee Operating Rules." TheStrategy and Sustainability Committee under the Board iscomposed of three directors. These members are firstelected by the general shareholders' meeting to becomecompany directors, and then the Board elects them to formthe committee, including two non-independent directors andone independent director. The committee is chaired by thechairman of the board, demonstrating the company's highregard for ESG efforts. The chairman, as the actual controllerof the company, diligently performs his duties, focusing onrisk control, and strictly enforcing internal controlmanagement systems such as the "Related TransactionManagement System" to protect the legitimate rights andinterests of relevant stakeholders.
The General Manager's Office, as the management level,is responsible for formulating and implementing specificESG plans, preparing ESG reports, and regularly updatingthe Board on progress.The execution level consists of the ESG Working Group,led by the Board Office. Group members includedepartments like the Supply Chain Center, Legal Affairs,Internal Audit, Finance, PV Materials Business Division,Electronic Materials Business Division, Functional FilmsBusiness Division(including their Quality and EHSdepartments), Intellectual Property, Information Technology,Engineering, R&D Institute, and Human Resources,covering all aspects related to the company's dailymanagement.
ESG Governance
Corporate GovernanceStructure
Standard OperationProceduresESGGovernance
Risk Managementand Internal Control
2023 ESG Report
ESG Working Group
To strengthen the implementation of ESG practices andenhance the quality of ESG disclosures, we have developedthe "Detailed Guidelines for the ESG Working Group." Theprimary role of the ESG Working Group is to communicate,advance, and implement specific ESG measures and tomanage and track the completion of ESG objectives.Through the collaborative efforts of this three-tier structure,we ensure the effective implementation of ESG initiativeswithin the group, further advancing our journey towardssustainable development.Looking forward, we are committed to continually improvingand refining our practices in environmental, social, andgovernance (ESG) areas. We aim to strengthen interactionsand exchanges with professional organizations bothdomestically and internationally, actively drawing onexemplary ESG practices within the industry. Moreover, theresults of ESG implementation will serve as a critical metricfor evaluating the performance of our management team,ensuring that ESG principles and practices permeate everylevel of the company's operations and management.
ESG Governance
The Board Office, as the leadership core of the ESG WorkingGroup, takes on the responsibility of planning, coordinating,and supervising ESG activities across departments, ensuringaccurate compilation and timely disclosure of ESG information.The Supply Chain Center is responsible for maintaining honestrelationships with partners, promoting transparency in thesupply chain, and committing to selecting responsible suppliers.The Legal Affairs Department ensures comprehensivecompliance with regulations and continuous improvement inESG performance. The Internal Audit Department ensures thatrisks and controls related to ESG are effectively managedthrough auditing and collects data to guarantee its accuracy.The Finance Center supports ESG projects financially andmonitors financial performance. Each business division and itsQuality and EHS departments ensure that products andoperations comply with environmental standards and activelyengage in training and improvements in environmental andhealth safety. The Intellectual Property(IP) Department protectstechnological innovations, promoting sustainable technologicaldevelopment. The Information Technology(IT) Center supportsESG goals through technical solutions, including carbonreduction and efficiency improvements. The HumanResources(HR) Center ensures compliance with labor laws,protects employee rights, and promotes employeedevelopment.
2023 ESG Report
Corporate GovernanceStructure
Standard OperationProceduresESGGovernance
Risk Managementand Internal Control
Daily decision-making body. Its
responsibilities include implementing theresolutions of shareholders' meeting,deciding on business plan and internalorganization, formulating the profitdistribution and investment and financingplans, appointing and dismissing seniormanagement personnel, and managingthe company's information disclosureand other affairs. The board consists of 7directors, 2 of whom are female directorsand 3 of whom are independent directors.
Corporate Governance Structure
The highest authority of the company.Follows the regulations outlined in theCompany Law, Articles of Association,Rules of Procedure of the Shareholders'meeting, and other applicablerequirements. These proceduresguarantee that all shareholders,particularly minority shareholders, haveequal status and legitimate rights andinterests.
GeneralManager
Board ofDirectors
Shareholders'meeting
Strategy
andSustaina
bleDevelop
mentCommitte
e
Audit
Committ
ee
Nominati
ngCommitt
ee
Remuner
ation andValuationCommitte
e
Board ofSupervi
sors
In charge of the company's operationunder the board of directors' leadership,responsible for implementing theresolutions of the board of directors andpresiding over the company's production,operation, and daily management.
The supervisory body. Responsible forsupervising business development, relatedtransactions, management and use of raisedfunds, etc., to promote sustainabledevelopment of the company. The Board ofSupervisors is composed of 3 supervisors,including 2 shareholders' representativesupervisors (1 female ) and 1 employeerepresentative supervisor.The particular working body set up by the Boardand is mainly responsible for the company'smedium and long-term development strategy,ESG work, major investment, and financingissues to study and put forward suggestions.
The Strategy and Sustainable DevelopmentCommittee comprises three directors, with theChairman of the Board serving as the Chairmanof the committee.Established by the Board, responsible for thecommunication between internal and externalaudit, review of internal control system, proposingthe appointment of external audit institutions,review of financial information and disclosure, etc.The Audit Committee comprises 3 directors (2female), among which the independent directorserves as the chairman of the committee.The operating mechanism established by theBoard of Directors to select and recommend theselection criteria and procedures for theappointment of directors and executives of thecompany. The nominating committee shall becomposed of 3 directors, of whom theindependent director shall serve as the chairmanof the committee.
Set up by the Board of Directors, responsible forformulating the remuneration scheme andassessment standards of the company'sdirectors and senior managers, and conducting
the assessment and submitting it to the Board of
Directors for decision. The committee comprises3 directors (1 female), among which theindependent director serves as the chairman ofthe committee.
2023 ESG Report
Corporate Governance
Structure
Standard Operation
ProceduresESGGovernance
Risk Managementand Internal Control
Standard Operation Procedures
* The profit distribution plan for the fiscal year 2023 shall be implemented only after it has been reviewed and approved by theAnnualGeneral Meeting of Shareholders for the year 2023.
Year
Increasebytransferringper10shares(shares)
Dividendpayoutper10shares(RMB)
Cashdividend(taxincluded)
(RMB)20214.003.50332,886,311.8020224.001.50199,731,787.0520234.002.60484,032,252.86
Cumulative cash dividends in the past three years1,016,650,351.71
2023 ESG Report
Corporate GovernanceStructure
Standard Operation
ProceduresESGGovernance
Risk Managementand Internal Control
Risk Management and Internal ControlTo effectively prevent and manage significant risks andenhance our overall risk management capabilities, we haveupdated and improved our “Internal Control ManagementSystem”. This update aligns with the "Basic Norms forEnterprise Internal Control," "Guidelines for the Applicationof Enterprise Internal Control," and other relevant standards.We have developed a streamlined and robust internalcontrol system that embeds risk management throughout allaspects of our operations and management. To overseeand assess our internal control management, whichincludes the internal environment, risk assessment, controlactivities, information and communication, and internalsupervision, the board of directors, the board of supervisors,management, and the internal audit department havecollectively established the company's risk internal controlmanagement organization. We strictly comply with allapplicable laws and regulations. In 2023, neither ourcompany nor any of its subsidiaries were involved in majorviolations or incurred fines for such violations.
In 2023, we engaged Pan-China Certified PublicAccountants LLP to conduct an internal controlaudit of all functional departments at theheadquarters and subsidiary levels. Throughoutthe year, no major defects were identified in thedesign and implementation of our internal controlsystem, and an unqualified opinion was issued inthe Internal Control Audit Report. We will also
disclose our Internal Control Self-EvaluationReport on an annual basis.
In 2023, the board of directors and its various committees operated in compliance with legal regulations, diligentlyfulfilling their responsibilities. They actively worked on improving the company's governance structure and strengtheninginternal controls, ensuring the company's healthy operation and orderly development. During the reporting period, theboard held 16 meetings, the supervisory board met 14 times, and the various committees convened 13 times. The boardof directors also organized and held 4 shareholder meetings. All meeting resolutions were effectively implemented,maximizing the protection of the interests of the company, shareholders, and all relevant stakeholders.
For details of the Company's Internal Control Audit Report, please refer to the website of Shanghai Stock Exchange
2023 ESG Report
Corporate GovernanceStructure
Standard OperationProceduresESGGovernance
Risk Managementand Internal Control
Business Ethics
Adhering to Business Ethics
Engaging in misconduct such as embezzlement, bribery,or acts that compromise our company’s interests orviolate the principles of fair trade can severely disrupt thenormal management order and hinder our sustained andhealthy development. Therefore, our company rigorouslyfollows laws and regulations including the "Criminal Lawof the People's Republic of China," the "Civil Code of thePeople's Republic of China," the "Anti-Unfair CompetitionLaw of the People's Republic of China," and the "InterimProvisions on Prohibiting Commercial Bribery." We arecommitted to opposing and explicitly prohibiting corruptpractices and fostering a culture of integrity and honestywithin the company.
In 2022, to effectively mitigate operational and managementrisks and encourage broad employee involvement ingovernance, we established and published the "InternalReporting Management System." This system facilitatestimely supervision and reporting of operational flaws or non-compliant activities within the company, ensuring lawful androbust business operations.Reporting Procedures andAnti-corruption AwarenessWe ensure the transparency and accessibility of ourcorruption reporting policy and methods through variouschannels:
(1)Bidding documents and procurement contracts must
clearly display corruption reporting channels prominently oron a dedicated page.
(2)On our website, in dormitory cafeterias, office areas, and
factories, there are dedicated columns clearly displayingreporting ways.
(3)During new employee orientation, the corruption reporting
channels and anti-corruption policies are clearly indicated intraining materials or employee handbooks.
(4)Regular integrity awareness meetings for suppliers are
held, requiring suppliers to sign an "Integrity Self-RegulationNotification Letter" to standardize their ethical behavior.Key Principles
(1)Broad employee participation.
(2)Real-time monitoring and reporting.
(3)Timely and effective response.
(4)Strict accountability.
(5)Confidentiality for whistleblowers.
Management StructureThe Management Leadership TeamLeadership Team Leader: Chairman of the BoardLeadership Team Office: Internal Audit Department
2023 ESG Report
Corporate GovernanceStructure
Standard Operation
ProceduresESGGovernance
Risk Managementand Internal Control
Business EthicsResponsibilities ofthe Management Leadership Team
(1)Establish, modify, and implement the "Internal Reporting
System."
(2)Receive and investigate reports of operational flaws or
misconduct, and determine their nature.
(3)Discuss remedial and corrective actions to report to the
company.
(4)Issue opinions on the responsibilities of those involved in
operational flaws or misconduct, according to companypolicies.
Scope of ReportingOperational flaws, management lapses, or violations acrossall departments and processes fall within the scope ofemployee reporting and whistle-blowing activities. Thisincludes:
(1)Violations of company policies, regulatory policies, or
laws and regulations in business management.
(2)Illegal activities in the implementation of financial systems.
(3)Unfair practices in employee recruitment and cadre
appointments.
(4)Violations of company rules in purchasing goods,
business expenditures, or official receptions.
(5)Other actions that could cause economic or reputational
damage to the company.
Confidentiality for WhistleblowersWe place high importance on protecting the legal rightsof whistleblowers, implementing the strictest measures tosafeguard their personal information, and prohibiting anydisclosure. Information about whistleblowers and theirmaterials are managed as confidential documents underour "Confidentiality System." During investigations, it isstrictly forbidden to directly transfer any complaint letters,evidence, or records to the reported units or individuals,to prevent leaks and retaliatory actions. If retaliationoccurs, the company will pursue administrative, financial,and legal responsibilities.
Key Supervisory ElementsBased on market cases and our actual situation, we haveidentified high-risk areas for corruption, such as materialprocurement, logistics, and construction. With a"prevention-first" philosophy, we have established acomprehensive "Bidding Management Method." The SupplyChain Center, the General Manager's Office, and theInternal Audit Department conduct open bidding fordifferent business segments to prevent rent-seeking andcorruption at the source. Every three years, the companyconducts an audit of all operations. In 2023, the companyconducted 93 bidding projects, 13 special audits, and dealtwith 5 corruption cases, taking appropriate actions againstthe individuals involved as per company regulations.
2023 ESG Report
Corporate Governance
Structure
Standard Operation
ProceduresESGGovernance
Risk Managementand Internal Control
APPENDIX 1 –GRI Content Index
GRISTANDARD
DISCLOSURELOCA
TION
RELATED CHARPTER
GRI 2:
GeneralDisclosures2021
-1 Organizational details
P4
,
P6
-7
Report Instructions, About FIRST
-2 Entities included in the
organization’s sustainabilityreporting
P4
P4Report Instructions
Report Instructions
-3 Reporting period, frequency
and contact pointP4
P4Report Instructions
Report Instructions
-
6 Activities, value chain and otherbusiness relationships
P6
P6
-9,
P34
-37,
P40About FIRST, Product Development, Supply ChainManagement
About FIRST, Product Development, Supply ChainManagement
-7 Employees
| P42 | Equality and Diversity |
-
| 8 Workers who are not employees | P42 | Equality and Diversity |
-9 Governance structure and
compositionP51
P51
-53
ESG Governance, Corporate Governance Structure
-10 Nomination and selection of
the highest governance bodyP53
| P53 | Corporate Governance Structure |
-11 Chair of the highest
governance bodyP53
| P53 | Corporate Governance Structure |
-
12 Role of the highest governancebody in overseeing themanagement of impacts
P51
P51
-53
ESG Governance, Corporate Governance Structure
-
13 Delegation of responsibility formanaging impactsP51
P51
-53
ESG Governance, Corporate Governance Structure
-
14 Role of the highest governancebody in sustainability reportingP51
P51
-53
ESG Governance, Corporate Governance Structure
-15 Conflicts of interest
P13
,
| P53 | Stakeholder Communication, Corporate Governance Structure |
-16 Communication of critical
concernsP13
P13
-14
Stakeholder Communication, Materiality
Assessment for ESG Issues
-17 Collective knowledge of the
highest governance bodyP51
P51
-52
ESG Governance
-19 Remuneration policies
P46
-47
Compensation and Benefits
-20 Process to determine
remunerationP46
P46
-47
Compensation and Benefits
-22 Statement on sustainable
development strategy
P5
| P5 | Letter from the Chairman |
-23 Policy commitments
| P13 | Stakeholder Communication |
2023 ESG Report
GRISTANDARD
DISCLOSURELOCA
TION
RELATED CHARPTER
GRI 2: General
Disclosures2021
-24 Embedding policy
| commitments | P31 |
,
P51
-52
Response to Climate Change, ESG Governance
-25 Processes to remediate
| negative impacts | P13 |
,
| P55 | Stakeholder Communication, Risk Management and Internal Control |
-26 Mechanisms for seeking
| advice and raising concerns | P13 |
,
| P55 | Stakeholder Communication, Risk Management and Internal Control |
-27 Compliance with laws and
regulationsP55
| P55 | Risk Management and Internal Control |
-29 Approach to stakeholder
engagementP13
| P13 | Stakeholder Communication |
GRISTANDARD
DISCLOSURELOCA
TION
RELATED CHARPTER
GRI 3:
MaterialTopics 2021
-1 Process to determine material
topicsP13
P13
-14
Stakeholder Communication, MaterialityAssessment for ESG Issues
-2 List of material topics
| P14 | Materiality Assessment for ESG Issues |
-3 Management of material topics
P11
-12,
| P14 | Response to UN Sustainable Development Goals, Materiality Assessment for ESG Issues |
GRISTANDARD
DISCLOSURELOCA
TION
RELATED CHARPTER
GRI 3: Material
Topics 2021
-
3 Management of material topicsP11
P11
-12,
| P14 | Response to UN Sustainable Development Goals, Materiality Assessment for ESG Issues |
GRI 201:
EconomicPerformance
2016
-1 Direct economic value
| generated and distributed | P8 |
,
P46
-47
2023 Key Performance and Awards,Compensation and Benefits
-2 Financial implications and
other risks and opportunities due toclimate change
P31
P31
-32
Response to Climate Change
GRISTANDARD
DISCLOSURELOCA
TION
RELATED CHARPTER
GRI 3: Material
Topics 2021
-3 Management of material topics
P11
-12,
| P14 | Response to UN Sustainable Development Goals, Materiality Assessment for ESG Issues |
GRI 203: Indirect
EconomicImpacts 2016
-1 Infrastructure investments
and services supportedP49
| P49 | Social Responsibility |
GRI Content Index
2023 ESG Report
GRISTANDARD
DISCLOSURELOCA
TION
RELATED CHARPTER
GRI 3: Material
Topics 2021
-
3 Management of material topicsP11
P11
-12,
| P14 | Response to UN Sustainable Development Goals, Materiality Assessment for ESG Issues |
GRI 205: Anti-
| corruption 2016 | 205 |
-1 Operations assessed for
risks related to corruptionP56
P56
-57
Business Ethics
-
2 Communication and trainingabout anti
-corruption policies and
procedures
P56
P56
-57
Business Ethics
-3 Confirmed incidents of
corruption and actions takenP56
P56
-57
Business Ethics
GRISTANDARD
DISCLOSURELOCA
TION
RELATED CHARPTER
GRI 3: Material
Topics 2021
-
3 Management of material topicsP11
P11
-12,
P14
Response to UN Sustainable Development Goals,Materiality Assessment for ESG IssuesStakeholder Communication
Response to UN Sustainable Development Goals,Materiality Assessment for ESG IssuesStakeholder Communication
GRI 207: Tax2019
-3 Stakeholder engagement
and management of concernsrelated to tax
P13
P13
Response to UN Sustainable Development Goals,Materiality Assessment for ESG IssuesStakeholder Communication
Response to UN Sustainable Development Goals,Materiality Assessment for ESG IssuesStakeholder Communication
GRISTANDARD
DISCLOSURELOCA
TION
RELATED CHARPTER
GRI 3: Material
Topics 2021
-3 Management of material
| topics | P11 |
-12,
| P14 | Response to UN Sustainable Development Goals, Materiality Assessment for ESG Issues |
GRI 302:
Energy 2016
-1 Energy consumption within
| the organization | P21 |
,
P29
-30
Green Operations, Water Conservation, Responseto Climate Change
-4 Reduction of energy
consumptionP18
P18
-P30
Energy Management, Green Operations, Emission& Waste Management, Chemical Safety, WaterConservation, Response to Climate Change
GRISTANDARD
DISCLOSURELOCA
TION
RELATED CHARPTER
GRI 3: Material
Topics 2021
-3 Management of material
| topics | P11 |
-12,
| P14 | Response to UN Sustainable Development Goals, Materiality Assessment for ESG Issues |
GRI 303: Water
and Effluents2018
-
1 Interactions with water as ashared resourceP29
| P29 | Water Conservation |
-3 Water withdrawal
| P29 | Water Conservation |
-4 Water discharge
| P29 | Water Conservation |
GRI Content Index
2023 ESG Report
GRISTANDARD
DISCLOSURELOCA
TION
RELATED CHARPTER
GRI 3: Material
Topics 2021
-
3 Management of material topicsP11
P11
-12,
| P14 | Response to UN Sustainable Development Goals, Materiality Assessment for ESG Issues |
GRI 306: Waste
GRI 306: Waste
2020
-1 Waste generation and
significant waste
-related impacts
P22
-25
Emission & Waste Management
-2 Management of significant
waste
-related impacts
P22
-25
Emission & Waste Management
-3 Waste generated
P22
-25
Emission & Waste Management
-
| 4 Waste diverted from disposal | P22 |
-25
Emission & Waste Management
GRISTANDARD
DISCLOSURELOCA
TION
RELATED CHARPTER
GRI 3: Material
Topics 2021
-
3 Management of material topicsP11
P11
-12,
| P14 | Response to UN Sustainable Development Goals, Materiality Assessment for ESG Issues |
GRI 308:
SupplierEnvironmentalAssessment2016
-1 New suppliers that were
screened using environmentalcriteria
P28
| P28 | Chemical Safety |
-2 Negative environmental
impacts in the supply chain andactions taken
P40
| P40 | Supply Chain Management |
GRISTANDARD
DISCLOSURELOCAT
ION
RELATED CHARPTER
GRI 3: Material
Topics 2021
-3 Management of material
| topics | P11 |
-12,
| P14 | Response to UN Sustainable Development Goals, Materiality Assessment for ESG Issues |
GRI 401:
Employment2016
-2 Benefits provided to full-
timeemployees that are not provided totemporary or part
-
time employees
P46
P46
-47
Compensation and Benefits
-3 Parental leave
P46
-47
Compensation and Benefits
GRI Content Index
2023 ESG Report
GRISTANDARD
DISCLOSURELOCA
TION
RELATED CHARPTER
GRI 3: Material
Topics 2021
-
3 Management of material topicsP11
P11
-12,
| P14 | Response to UN Sustainable Development Goals, Materiality Assessment for ESG Issues |
GRI 403:
OccupationalHealth andSafety 2018
-1 Occupational health and
safety management systemP45
| P45 | Occupational Health & Safety Management |
-
| 3 Occupational health services | P45 | Occupational Health & Safety Management |
-4 Worker participation,
consultation, and communicationon occupational health and safety
P45
| P45 | Occupational Health & Safety Management |
-5 Worker training on
occupational health and safetyP45
| P45 | Occupational Health & Safety Management |
GRISTANDARD
DISCLOSURELOCA
TION
RELATED CHARPTER
GRI 3:
Material
Topics 2021
-3 Management of material
topicsP11
P11
-12,
P14
Response to UN Sustainable DevelopmentGoals, Materiality Assessment for ESG Issues
Response to UN Sustainable DevelopmentGoals, Materiality Assessment for ESG Issues
GRI 404:
Training andEducation2016
-
1 Average hours of trainingper year per employee
P43
P43
-44
Employee Training and Development
-2 Programs for upgrading
employee skills and transitionassistance programs
P43
P43
-44
Employee Training and Development
GRISTANDARD
DISCLOSURELOCA
TION
RELATED CHARPTER
GRI 3:
MaterialTopics 2021
-3 Management of material
topicsP11
P11
-12,
P14Response to UN Sustainable DevelopmentGoals, Materiality Assessment for ESG Issues
Response to UN Sustainable DevelopmentGoals, Materiality Assessment for ESG Issues
GRI 405:
Diversity and
EqualOpportunity
2016
-1 Diversity of governance
bodies and employeesP42
P42
Equality and Diversity
Equality and Diversity
GRI Content Index
2023 ESG Report
GRISTANDARD
DISCLOSURELOCAT
ION
RELATED CHARPTERGRI 3:
MaterialTopics 2021
-3 Management of material
topicsP11
P11
-12,
P14
Response to UN Sustainable DevelopmentGoals, Materiality Assessment for ESG Issues
Response to UN Sustainable DevelopmentGoals, Materiality Assessment for ESG Issues
GRI 416:
CustomerHealth andSafety 2016
-2 Incidents of non-
compliance concerning thehealth and safety impacts ofproducts and servicesNoenvironmentalpenalties
Noenvironmentalpenalties
/
GRI Content Index
2023 ESG Report
GRISTANDARD
DISCLOSURELOCAT
ION
RELATED CHARPTER
GRI 3: Material
Topics 2021
-
3 Management of material topicsP11
P11
-12
| GRI 413: Local | P14 | Response to UN Sustainable Development Goals, Materiality Assessment for ESG Issues | |
Communities
2016
-1 Operations with local
community engagement, impactassessments, and developmentprograms
P49
| P49 | Social Responsibility |
2023 ESG Report
APPENDIX 2 -Feedback Form
To our valued readers,We express our gratitude for taking the time to read our 2023 Environmental, Social, and Governance(ESG) Report. As we strive to enhance the standard of our ESG endeavors and the caliber of our reportpreparation, we would greatly appreciate your input and valuable suggestions. You could provide uswith your feedback through the mail, email, or by making calls, and so on. Rest assured that we willmaintain the confidentiality of your personal information and the content you provide. Thank you!
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Contact informationAddress: No.8 FusiteStreet, Lin’an, Hangzhou, ChinaTel: 0571-61076968Email: first-zqb@firstpvm.com