Corporate GovernanceRisk ManagementBusiness Ethics and Anti-CorruptionInformation Security andPrivacy ProtectionCommunity Contribution
Honest Governance
Product Quality CustomerServiceInnovative R&DResponsible Procurement
Immaculate Quality
Environmental ManagementLow-Carbon OperationsEmission ManagementResource Management
Green Planet
Employee Rights and InterestsEmployee Training andDevelopmentOccupational Health and Safety
Harmonious LifeAbout the ReportChairman'sStatementAbout HighpowerTechnology
Appendix I KeyPerformance SheetsGovernance performanceEnvironmental performanceSocial performance
Appendix IIBenchmarking index
UN SDGs IndexGRI Content Index
Company pro?leSustainability managementSummary of ESG Performance in 2023
Contents
2023Environmental，Social and Governance (ESG) ReportHonest GovernanceGreen PlanetHarmonious Life
Immaculate QualityAppendixAbout the Report
About the ReportOverviewThis report is the ?rst environmental, social and governance report issued by Shenzhen Highpower Technology Co., Ltd.(Hereinafter referred to as "Highpower Technology", the "Company", "we" and "us" ), re?ecting the Company's thinking,practice, results and prospects in carrying out compliance and ethical corporate governance, improving environmentalbene?ts and promoting harmonious social development.
Con?rmation and Approval
This report was approved by the Board of Directors on 25 April 2024 after being con?rmed by the management.Reporting Language
The report is published in both Chinese and English. In case of any discrepancy between the two versions, the Chinese versionshall prevail.
Publication Form
●
On the o?cial website of Highpower Technology（https://www.highpowertech.com/）View or download the electronicversion of this report.●
If you have any questions or suggestions regarding this report, please feel free to contact us at:
●
Board O?ce of Shenzhen Highpower Technology Co., Ltd●
Contact address: Board O?ce of Shenzhen Highpower Technology Co., Ltd., No. 68, Xinxia Avenue, Pinghu Street, Longgang
District, Shenzhen
●
CONTACT: hpcapital@highpowertech.com●
Tel: 0755-89686543
The scope of information disclosed in this report covers Highpower Technology and its subsidiaries, which is consistentwith the scope of annual report of Highpower Technology (stock code: 001283). The names of the subsidiaries are asfollows:
Highpower Technology refer to Shenzhen Highpower Technology Co., Ltdlcon Energy refer to lcon Energy System (Shenzhen) Co., LtdSpringpower Technology refer to Springpower Technology (Shenzhen) Co., LtdHuizhou Highpower refer to Huizhou Highpower Technology Co., LtdGuangdong Highpower refer to Guangdong Highpower New Energy Technology Co., LtdHong Kong Highpower Technology refer to Hong Kong Highpower Technology Co., LtdHong Kong Highpower International refer to Hong Kong Highpower International Co., LtdHighpower Suppy Chain refer to Shenzhen Highpower Supply Chain Management Co., Ltd
Scope and Boundary of the Report
Source and Reliability AssuranceThe information and data disclosed in this report are derived from the company's statistical reports and o?cial documents,and have been reviewed by relevant departments. The Company promises that there is no false record or misleadingstatement in this report, and is responsible for the authenticity, accuracy and completeness of the content.All currencies in the report are RMB. If the ?nancial data in this report is inconsistent with the ?nancial report disclosed by theCompany, the ?nancial report shall prevail.
Reporting Time Range
This report is an annual report covering the work from 1 January 2023 to 31 December 2023 (the "reporting period"), andsome related information may be retroactive beyond the reporting period.Basis of Compilation
This report is mainly prepared in accordance with Shenzhen Stock Exchange Guideline No.1 on Self-Regulation ofListed Companies - Standardized Operation of Main Board Listed Companies and Disclosure Requirements for SocialResponsibility Reports of Listed Companies, and with reference to the Global Reporting Initiative tandards (GRI Standards),the issues concerned by Sustainable Development Goals (SDGs) and mainstream ESG ratings at home and abroad.
Highpower Singapore refer to Highpower Singapore Co., LtdAmpower New Energy refer to Shenzhen Ampower New Energy Co., LtdVietnam Exquisite refer to Vietnam Exquisite Power Technology Co., Ltd
2023Environmental，Social and Governance (ESG) ReportHonest GovernanceGreen Planet
Immaculate QualityAppendixChairman's Statement
Chairman's StatementLooking back on 2023, in the face of the complex and changeable economic environment at home and abroad and the increasingly ?erce market competition, Highpower Team has alwaysbeen ?rm in con?dence, facing di?culties, steadfast, progressive and innovative. With the vision of " Provide world-class clean energy solutions to power the future.", Highpower Team hascontinuously deepened organizational change and capacity building. In the key year of development, the company comprehensively improved its investment and layout at all levels of R&D,paid attention to product innovation and user experience, actively carried out opening up and cooperation, and promoted the company's steady and long-term sustainable development.
Honest governance: Implement compliant corporate governance and consolidate the foundation of high-quality development
Highpower Technology adheres to the principle of leading and system ?rst, and puts compliance governance into the daily operation process by continuously improving the construction ofprocess mechanism. At the same time, we pay attention to the prevention and control of risks to ensure the stability and long-term development of the company. We actively advocate justacts that are bene?cial to society, shareholders and partners, have zero tolerance for illegal, bad and improper acts, and create a clean, upright and transparent working atmosphere.
Immaculate quality: Lead a high-quality industrial ecosystem based on product quality and innovationHighpower Technology is customer-centric, committed to creating excellent products, intimate services, high standards of technical speci?cations, high-quality output and delivery to meetthe current and future needs of customers. We continue to focus on the e?ective use of resources, strive to achieve precise investment and e?cient output, and embark on a road of R&Dinnovation; build a sustainable and improved advanced production system, build a whole-process quality traceability system,and continuously improve the level of digital and intelligentmanufacturing. We provide safe, innovative and high-quality products and services to the society, and help the long-term and healthy development of the industry.Green planet: Continuously improve environmental bene?ts and build a green and sustainable value chainHighpower Technology practices green manufacturing and strives to deepen the green and low-carbon transformation of itself and the whole industry. We adhere to the concept ofgreen development, optimize production processes, strive to reduce energy consumption and greenhouse gas emissions, and continuously improve resource utilization and recycling.By improving environmental management, mitigating negative impacts on the environment, adhering to the road of sustainable development, abiding by the commitment to energyconservation and environmental protection, and actively ful?lling social responsibilities, we have helped the whole value chain achieve the goal of "double carbon".
Harmonious life: Adhere to people-oriented and create a better life togetherHighpower Technology always regards employees as the Company's most valuable wealth, protects the rights and interests of employees, and is committed to building a fair, just,harmonious and friendly working environment. We fully understand that talent is the core of enterprise development, and encourage employees to continue to strive on the company'splatform and share development bene?ts with the company by continuously optimizing the construction of talent echelon and improving the incentive and sharing mechanism. At the sametime, we actively strengthen team building, enhance the collaboration ability and team cohesion of employees, lay a solid foundation for the long-term development of the company, andachieve joint growth with employees.This is our first ESG Report, which aims to review the efforts made by Highpower Technology in corporate governance, environmental protection and social responsibility in2023, hoping to further promote information sharing and exchange between the company and all sectors of society, especially stakeholders, increase mutual understanding andrecognition, and jointly write a new chapter in sustainable development.Hundreds of barges compete for the current, and those who struggle for the boat are the ?rst. The mission in 2024 is like a rock, and we cannot slacken down for a moment. HighpowerTechnology will continue to adhere to the corporate mission of "To solve global customer challenges and pressures; Respond rapidly; Provide safe products and quality service.",actively ful?ll social responsibilities, seize opportunities, meet new challenges with a more pragmatic style, work together to win the future and create brilliance with more resolutedetermination, more tenacious belief and more ?rm steps.
Chairman of Shenzhen Highpower Technology Co., Ltd
George Pan
Harmonious LifeAppendix
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About Highpower TechnologyImmaculate QualityAppendix
About Highpower Technology
Company NetworkCompany Pro?leShenzhen Highpower Technology Co., Ltd. (Highpower Technology, stock code: 001283) was foundedin 2002. As an enterprise with independent R&D capabilities and comprehensive competitivenessin the global market, Highpower is committed to the research, design, manufacturing and salesof Li-ion and Ni-MH batteries, energy storage systems and used battery recycling. We understandthe challenges and pressures faced by global brands. With years of technology accumulation andproduct development experience, we have been recognized by well-known brands around the world.We provide ?exible, reliable & one-stop power solutions for customers.CORE VALUESVISIONMISSION
Delight customers; Open-
minded and sharedsuccess, Dedication todetails; Always improve
Provide world-classclean energy solutions to
power the future
To solve global customerchallenges and pressures;Respond rapidly; Providesafe products and quality
service
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Sustainability ManagementHighpower Technology is committed to continuously improving environmental, social and governance performance, actively promoting the sustainable development of the Company's business and social impact, working with stakeholders tocreate long-term business value, and helping to promote the progress of major global sustainable development issues.Highpower Technology adheres to the core values of "delight customers, open-minded and shared success, dedication to details, always improve" and to "provide world-class clean energy solutions to power the future" as its goal. We vigorouslypromote the concept of "Green Manufacturing", persist in the path of sustainability, and demonstrate the company's corporate social responsibility.The Company is committed to improving management policies to achieve its sustainable development mission. We focus on product quality, environment, HSF
, social responsibility, business ethics and other aspects to formulate sustainable policies,focusing on the four major sustainable development directions of honest governance, immaculate quality, green planet, harmonious life, and striving to create sustainable long-term value for employees, customers and community contribution.
HSF: Hazardous Substances Free.
SDGsRelationships
Material IssuesPolicies
Sustainable DevelopmentDirections
mmaculate Quality
Pioneer excellence innovationand quality assuranceI
I
reen Planet
Foster a sustainable futureG
G
armonious Life
Elevate well-being for the wholecommunityHH
?Environmental policy?Social responsibility policy
onest Governance
Promote responsible businesspracticesH
H
?Product quality and safety
?Customer relationship management
?Innovation and R&D
?Responsible Procurement
?Quality policy?HSF policy
?Environmentalmanagement
?Greenhouse gasesand climate change
?Clean technologyopportunities
?Employee rights and interests?Diversity, equality and inclusion?Employee training and development?Occupational health and safety?Corporate governance
?Risk management
?Business ethics and anti-corruption
?Information security and privacy protection
?Community investment and participation
?Business ethics policy
?Emissions and wastemanagement?Biodiversity?Energy management?Resourcemanagement
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ESG ManagementHighpower Technology has established a sound ESG management structure, and is committed to implementing the concept and action of sustainabledevelopment into various operations and management activities to ensure a high degree of consistency with the company's strategic objectives.
ESG Executive Committee
? Reporting on ESG work to the ESG Decision Committee? Coordinate various departments to implement the
work deployment of ESG Decision Committee? Drafting ESG management strategy, managementpolicies, goals and deployment, and submit to the ESGDecision Committee for approval
ESG Implementation Group? Promote the implementation of the sustainable
development strategy
? Perform 'ESG KPIs Assessment' of each module? Responsible for communication with internal and
external stakeholders? Conduct signi?cance assessment and write ESG report
ESG Decision Committee? Organize, supervise and review ESG related matters? Assess ESG risks and opportunities? Make decisions on ESG strategy, management
policies, goals and deploymentESG Executive Committee
Social Management GroupEnvironmental Management GroupCorporate Governance Group
ESG Decision Committee
EnvironmentalManagement GroupEnergy ManagementGroup
Quality ManagementGroup
Occupational Healthand Safety Group
Human Rights andLabour Protection Group
Business EthicsManagement GroupInformation SecurityManagement Group
Supply ChainManagement GroupR&D and InnovationGroup
Public RelationsManagement Group
Client & MarketManagement Group
Highpower Technology ESG Governance Structure
ESG Implementation Group
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About Highpower TechnologyImmaculate QualityAppendix
Stakeholder Engagement
Highpower Technology ?rmly believes that stakeholder advice can help us actively respond to key risk factors a?ecting business development, and our growth cannot be separated from the support of various stakeholders. Through active andclose communication with all parties, we sort out and identify the concerns, expectations, demands and key issues of stakeholder.The Company always maintains a close connection with stakeholders and has established a regular communication system. We actively respond to the concerns of stakeholders in the following ways to create sustainable value for them.
StakeholdersFocus topicsCommunication channels and response methods
Government and regulators
Business ethics and anti-corruptionEnvironmental management
Emissions and waste managementEnergy management
Regulatory supervisionInformation disclosure
O?cial correspondencePolicy implementationShareholders and investors
Innovation and R&DProduct quality and safety
Corporate governanceOccupational health and safety
The general meeting of shareholdersInteractive Ehe o?cial websiteRoadshow and reverse roadshow
Periodic reports and interim announcementsResults presentationOnline and o?ine meetings of analystsCustomers
Product quality and safetyEmissions and waste managementEnvironmental management
Risk managementInformation security and privacy protection
Technology R&D and innovationPhone call
Customer satisfaction surveyQuality management systemSuppliers and partners
Product quality and safetyEmissions and waste managementInformation security and privacy protection
Occupational health and safetyBusiness ethics and anti-corruption
Supply chain management and auditSupplier communication and empowermentEmployees other thanthe board and seniormanagement
Occupational health and safetyProduct quality and safetyEmployee rights and interests
Emissions and waste managementInformation security and privacy protection
Employee activityEmployee trainingEmployee appraisal and promotionLabour union
Internal information communication platformOccupational health surveillanceSafety production managementBoard and seniormanagement
Customer relationship managementEmployee training and developmentOccupational health and safety
Risk managementPhilanthropy
Internal management meetings and reportsCorporate governance training
Internal information communication platformInternal emailsNGO/social organization/media
CharityProduct quality and safety
Innovation and R&DEmissions and waste management
Public bene?t activitiesVolunteering
Media interviewsInformation disclosure
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About Highpower TechnologyImmaculate QualityAppendix
Highpower Technology Material Topics Matrix
Environmental topicsSocial topicsGovernance topicsImportance to Highpower Technology
Material Topics Management
During the reporting period, the Company conducted stakeholder survey through its own operation status, combined withdomestic and foreign laws and regulations and policy orientation, external trends, peer practice, department research andother methods, comprehensively identi?ed issues that have an impact on the Company and stakeholders, formed a ?nalmaterial topics matrix and identi?ed 9 material issues of high importance, 9 material issues of medium importance and 2material issues of general importance.
Material Topics Identi?cation Process
In conjunction with domestic and international policies, exchange ESG guidelines, capital markets and report writingmethodology, peer practices and other issues of concern to the company.
Topics Identi?cation
Identify and assess the impact and importance of ESG topics through departmental and field interviews, internal andexternal stakeholder views, and stakeholder questionnaires.Topics Ranking
Identify and respond to important and material topics through the Company's current situation and the ?nal analysis results.
Topics Disclosure and Response
Importance to stakeholdersHigh
High
Environmentalmanagement
Employee training anddevelopment
Resourcemanagement
Resource management
Emissions and waste management
Greenhouse gases andclimate changeClean technology opportunities
Biodiversity
Employee rights and interestsOccupational health and safety
Diversity, equality and inclusion
Product quality and safety
Innovation and R&D
Responsible procurement
Customer relationshipmanagement
Community investment andparticipation
Risk managementCorporate governanceInformation security and privacy protection
Business ethics andanti-corruption
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Summary of ESG Performance in 2023
GGreenPlanet
H
Harmonious
Life
H
Number of major informationsecurity incident is
Number of signi?cant risksidenti?ed in the audit is
Number of subsidiaries have passedthe ISO 27001 certi?cation is
Sunshine Scholarship Foundation hasbeen established for more than
years
Achievement rate ofoccupational healthand safety objectives
100%
Subsidiaries have obtained the national "Green Factory"certi?cation issued by the Ministry of Industry and InformationTechnology of the People's Republic of China achieved
Subsidiaries involved in production whichhave obtained ISO 14001 environmentalmanagement system certi?cation achieved
I
HonestGovernance
Immaculate
Quality
Number of platformswhich have made majorbreakthroughs achieved
Number of subsidiaris whichhave passed the ISO 9001 qualitymanagement system certi?cation is
In 2023, number of new ?led patent applicationsachieved490+
In 2023, number of new patents granted achieved240+By the end of 2023, the number of authorized ande?ective patents is
UFIDA 2023 China Human Resources Venus Prize-2023 Digital IntelligenceRecruitment Innovation Practice AwardWinner of Liepin Zhongnan District 2023Outstanding Talent Partner AwardZhilian Recruitment 2023China Annual Preferred Employer
Number of product safetyincidents is
Number of majorenvironmental accidents is
External factory partners safetytraining hours achieved1,741hours
Honest GovernanceAbout Highpower Technology2023Environmental，Social and Governance (ESG) ReportImmaculate QualityGreen PlanetHarmonious LifeAppendix
01.Honest Governance
?Corporate Governance?Risk Management?Business Ethics and Anti-Corruption
?Information Security andPrivacy Protection?Community Contribution
Good corporate governance is the key to the long-termstable development of enterprises. Highpower Technologyadheres to the core values of "delight customers, open-minded and shared success, dedication to details,always improve ", maintains the top-down governancestrategy of the Company, builds long-term brand in?uencewith integrity management, and gives back to the societywith a positive attitude.
Honest GovernanceAbout Highpower Technology2023Environmental，Social and Governance (ESG) ReportImmaculate QualityGreen PlanetHarmonious LifeAppendix
Corporate GovernanceA comprehensive corporate governance structure is the cornerstone and important guarantee for the sustainabledevelopment of the Company. Through a comprehensive and completed corporate governance structure, HighpowerTechnology continues to improve the transparency and e?ectiveness of governance, safeguard the rights and interestsof stakeholders through clear rights and responsibilities, e?cient and transparent governance practices, and overallhelps to improve the development of the Company. The Company continuously improves and optimizes its corporategovernance structure in strict accordance with the requirements of relevant laws and regulations such asTheCompany Law, The Securities Law, The Governance Standards for Listed Companies, Shenzhen Stock Exchange StockListing Rules.
Highpower Technology's corporate governance structure
Board of Supervisors
The General Meeting
of Shareholders
Board of Directors
The Managerial Level
Remuneration and Appraisal
CommitteeNomination Committee
Strategy CommitteeAudit Committee
During the reporting period, the Company held 2 general meetings of shareholders, 7 meetings of the board ofsupervisors and 8 meetings of the board of directors, including 3 meetings of the remuneration and appraisalcommittee, 3 meetings of the strategy committee and 4 meetings of the audit committee.
The General meeting of ShareholdersThe general meeting of shareholders is the power organization of the Company. The Company shall hold the meeting once ayear, responsible for the decision-making of the business operation and investment plan based on the national laws, reviewand approve the report of the board etc.The Board of SupervisorsThe board of supervisors shall responsible for reviewing the regular report of the Company from the board of directors, anddeliver formal reviewed suggestions if possile. It also responsible for supervising the Company's finance performance anddirectors, senior management groups' behaviors on execution.The Board of DirectorsThe Company establishes the board of directors that responsible for the general meeting of shareholders, which includescall the meeting of shareholders, report to the general meeting, implemen the resolutions of the meeting, decide on internalmanagement structure, and manage the Company's disclosure etc.The term of directors is 3 years，selected from the general meeting of shareholders, and required to hire indepent directorsThe Company selects the best candidates in the board based on diversity principle, prohibits any behaviors related to gender,ethnicity, region and culture, ensure that the recruitement process is fair and just.During the reporting period, the board of directors has 9 members, including 1 female member, accounting for 11.11% in theboard. There are 3 members as independent directors.
The Committee
Highpower Technology establishes the aduit committee, the strategy committee, remunieration and appraisal committee,nominatio committee according to the Code of Corporate Governance for Listed Companies, all of these support the board'sdecision with scienti?c and professional suggestions and references.The Managerial Level
The Managerial Level shall perform their duties in accordance with the Articles of Association of Highpower Technology,implements the resolutions of the board of directors, reports their work to the board of direcots, and actively promotes theannual operation and management of the Company.
Highpower Technology Corporate Governance Structure
Honest GovernanceAbout Highpower Technology2023Environmental，Social and Governance (ESG) ReportImmaculate QualityGreen PlanetHarmonious LifeAppendix
The Company is aware of the importance of risk management to the Company. To prevent and resolve variousrisks that may occur in the daily operation of the company in advance, Highpower Technology has formulated andcontinuously improved internal risk management and internal control system. The core of the system is 'Three lines ofdefense', which aims to improve the company's risk resistance ability in an all-round and multi-level way.
Through the close cooperation of these three lines of defense, we can effectively prevent and resolve all kinds ofrisks that may occur in the daily operation of the Company and improve the Company's risk management controlability and the ability to respond to emergencies. This not only contributes to the standardized operation and stabledevelopment of the Company, but also protects the legitimate rights and interests of all stakeholders and realizes thelong-term sustainable development of the Company.
Highpower Technology has established an internal audit process to strengthen the overall coordination andsupervision of internal audit. Meanwhile, we are deeply aware of the importance of ESG factors to the company'soperation and ?nancial situation, and incorporate ESG related elements into the company's special audit to betterunderstand and assess ESG related risks to ensure that ESG risks are reduced to a controllable range. During thereporting period, we did not identify signi?cant risks in our audit.
Highpower Technology's audit process
Three lines of defense risk management system
Integrate ESG elements into annual audit plan,ensure that the Company has deepen assesson the ESG risks during the audit process
Set up audit plan
The audit department executes special audit work,and considers ESG elements as priority, and givesspecial attention on the establishment of auditstrategies and the process of audit execution
Aduit work executionThe ?rst defenseThe second defenseThe third defenseEach subsidiary, eachsystem and business unit
Each departmentAudit departmentIdentify and respond to potentialrisks in the first time to ensurerobust and efficient businessoperation
Conduct in-depth analysis andevaluation to provide scienti?crisk management strategiesand measures for the Company
Responsible for the supervisionand evaluation of the entirerisk management system toensure the effectiveness of riskmanagement and provide solidrisk protection for the Company
Risk Management System
Risk Management
Internal Auditing
Honest GovernanceAbout Highpower Technology2023Environmental，Social and Governance (ESG) ReportImmaculate QualityGreen PlanetHarmonious LifeAppendix
Adhering to business ethics standards will help improve enterprise reputation, coordinate internal and externalrelations, and improve enterprise management efficiency. Highpower Technology adheres to the business ethicspolicy of "Concept ?rst, System base, Zero tolerance forging sunshine team", always concentrate on business ethicsand anti-corruption in the Company, and strives to build a healthy business ecosystem.
Highpower Technology strictly abides by theAnti-Money Laundering Law of the People's Republic of Chinaand otherlaws and regulations, and has formulated documents such as theAnti-Fraud Policy of Highpower Technology, theIntegrity Commitment Letterto clarify the responsibilities and authorities of each department and the de?nition ofcommercial bribery, and to specify the prohibited acts in business ethics, anti-corruption and bribery. The Companyalso encourage employees, suppliers and other stakeholders to participate, build a strong anti-corruption ?rewall.Highpower Technology formulatedHighPower Technology Anti-Fraud Policy, and publicly disclosed on its o?cialwebsite, requiring all employees and suppliers of the Company to jointly abide by, and jointly build a harmonious andstable business environment.
To further cultivate the awareness of all employees in anti-corruption, the Company vigorously promotes theconstruction of clean culture, integrity education, signing letters of commitment and other forms.
Highpower Technology Integrity Culture Construction
Business Ethics and Anti-Corruption
IntegrityCultureConstruction
?Withthe Code of Conduct and Discipline Management Regulations of Highpower Technologyas the core, clear the work discipline, and build a clear supervision, Code of Conduct, and otherregulatory policies.?Each Employee will readthe Code of Conduct andDiscipline Management Regulations of HighpowerTechnology, to clarify work discipline, business ethicsand other contents?Conduct online anti-corruption content promotion fornew employees?Promote business ethics and anti-corruption toemployees through email and other forms
?Signthe Supplier Commitment Letterand Supplier Social ResponsibilityCommitment Letteron the suppliers'entry section, ensure that thesuppliers provide products andservice based on the standard of theCompany
For EmployeesFor Suppliers
Business Ethics and Anti-Corruption Management
Construction of Anti-Corruption Culture
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Highpower Technology has established a sound whistle-blowing management mechanism and aWhistle-blowingMangement Systemto ensure the standardized management of whistle-blowing is carried out in a standardizedmanner, protect the legitimate rights and interests of whistle-blowers in accordance with the law, and ensure therealization of the company's business objectives, stable and healthy development of the Company. The AuditDepartment of the Company is responsible for accepting, managing and handling the whistleblowing, and reportingto the Chairman and the Audit Committee of the Board of Directors. To verify the authenticity of the situation, wewill give a reward of RMB 500 to 200,000, encourage employees and suppliers and other stakeholders to activelyparticipate in anti-corruption and maintain an integrity and compliant business atmosphere.In addition, we have established a number of whistleblowing channels and provided the President's O?ce and AuditDepartment with reporting emails when signingthe Integrity Agreementwith suppliers to ensure that all relevantparties can supervise the business ethics construction of Highpower Technology.
We promise to follow the principle of confidentiality and anti-retaliation, explicitly require full confidentiality ofreported acts and materials, and deal with any form of retaliation according to the Law. No one may disclose thewhistle-blower, the contents of the report and other relevant information to the whistle-blower, the unit and unrelatedpersonnel. With the exception of those who directly accept the reported case, no other personnel may inquire orunderstand the informant's situation. At the same time, for real-name reporting, the relevant personnel shouldfeedback the progress and results of the processing to the whistleblower in an appropriate manner, and fully protectthe privacy and rights of the whistleblower.
EmailHpShenji@highpowertech.com
Address
Audit Department, Building A7, No. 68,Xinxia Avenue, Pinghu Street, LonggangDistrict, ShenzhenFace to face reportThe whistleblowers can report theproblem to the relevant person incharge of Highpower TechnologyAudit DepartmentFeedback on the Cadre work issues
Whistleblowers can report problemsto the Highpower Technology HumanResources Department online or o?ine
Highpower Technology Reporting Channel
Whistleblowing Management Mechanism
Honest GovernanceAbout Highpower Technology2023Environmental，Social and Governance (ESG) ReportImmaculate QualityGreen PlanetHarmonious LifeAppendix
Information security and privacy protection are the cornerstone of corporate security and an important part of businessethics. To ensure the full protection of personal and institutional information, Highpower Technology always attaches greatimportance to personal information security management and privacy protection, strictly prevents information securityaccidents, and protects personal information and privacy rights and interests.
Information security and data protection are important barriers for Highpower Technology to maintain business continuityand controllability and prevent data assets and innovative achievements from being leaked. The Company has carried out anormal information security management mode, gradually establishing active and passive defensive measures to maintainsystem information and data security. Meanwhile, we also require suppliers to sign supplier confidentiality agreementsand IT supplier management regulations, carry out classi?ed and hierarchical management of security risk events, and riskprevention, so as to comprehensively guarantee the information security of Highpower Technology and achieve win-winresults with stakeholders.
Highpower Technology actively builds a corporateculture of mutual respect and \ information securityprotection, improves employees' information security riskawareness, and strengthens employees' ability to copewith unexpected information security incidents. We takethe information security course as a compulsory coursefor new employees to promote information securityprevention and cultivate network security awareness, sothat new employees can always maintain informationsecurity awareness in their work and become 'a Highpowerperson' who abide by laws and regulations. During thereporting period, the Company conducted 11 informationsecurity trainings for new employee.
In order to prevent information leakage from bringing huge potential risks to the Company, Highpower Technology activelyassumes the responsibility of protecting privacy and information security, strictly abides bythe Personal InformationProtection Law of the People's Republic of China, the Data Security Law of the People's Republic of Chinaand otherrelevant laws and regulations, establishes and ensures the effective operation of Highpower Technology InformationSecurity Management System, and timely identi?es and defuses information security risks. The Company has establisheda comprehensive information security management structure, with the Information Security Management Committee asthe leader, leading the Information Security Professional Group and various functional departments to further implementinformation security management and comprehensively guarantee information security.
Information Security Daily Management
Information Security Culture Construction
ISO 27001 Certi?cation
Highpower Technology Information Security Technology Management Measures
Information security training for new employees
Open Internet access websites for securitydetectionConduct security scans of internal serversto ?x potential security vulnerabilitiesProtect the normal operation of informationsystem and data security
Establish data backup and o?ine backupmechanisms to ensure data securityFormulateInformation Security IncidentEmergency Response Planto deal with allkinds of security incidents
Proactive MeasuresPassive Measures
Highpower Technology did not have any majorinformation security incidents.
case
During the reporting period
Information Security andPrivacy Protection
Information Security and Privacy ProtectionManagement System
Information Security And Privacy ProtectionManagement Measures
Highpower Technology has established guidelinesand normative requirements from the perspectives ofinformation security policy, information security strategy,information security procedures, management measures,information security baseline, information systemdevelopment security, personal information protectionspeci?cation, data lifecycle security, business continuity,etc., and formulatedInformation Security ManagementManualas the general guideline of information securitymanagement of the Company, as well as internal policiessuch asInformation Security Management StrategySet, Personal Information Management Measures andIT Supplier Management Regulations,covering alldepartments and employees of the Company and itssubsidiaries, including third-party personnel who canaccess information assets, to ensure the con?dentiality,integrity and availability of the Company's informationand customer information.During the reporting period, four subsidiaries haveobtained ISO 27001 certi?cation.
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Community Contribution
Sunshine action: helping employees to warm their heartIn September 2023, the Party Branch of HighpowerTechnology and Guanghe Women's Federationvisited the families of children with congenitalhearing disabilities, and volunteers sent warmcondolences and holiday wishes to them.
Garbage sorting: party members attending volunteer service to promote civilizationIn November 2023, in order to improvethe environmental awareness andhealth awareness of Party members andcadres, and enhance the cohesion andinfluence of Party organization, High-power Technology Party Branch orga-nized Party members to actively partic-ipate in the voluntary activity of "Bendfor love，Picks up and Runs Together"carried out by the Party Committee ofthe starting area of China South Korea(Huizhou) Industrial Campus to pro-mote sustainable social development.
Highpower Technology adheres to the people-centered idea, and promotes common prosperity in high-quality development, socialgovernance innovation and social civilization and harmony. The Company actively engages in public welfare undertakings suchas poverty alleviation, education aid, medical assistance and volunteer services, and returns and feeds the society with practicalactions. Since 2018, HighpowerTechnology has donated about RMB 9.6 million to Maanzhen Education Promotion Association,Shenzhen Longgang District Charity Foundation, Central South University Education Foundation, Jiangxi University of TechnologyEducation Foundation, South China University of Technology Education Development Foundation, Harbin University of TechnologyEducation Development Foundation and other foundations to contribute their power to the development of education.
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HighPower Technology Charitable projects include, but are not limited to:
During the reporting period, the Company actively carriedout various community public welfare activities such astargeted poverty alleviation, with a total investment ofRMB 1,886,600 in public charity, RMB 176,000 in targetedpoverty alleviation, and 3 people participated in targetedpoverty alleviation, winning the honor of "Love DonatingEnterprise".
Honor of "Love Donation Enterprise"
With the strong support of the Company for philanthropy, Highpower Technology founded the "Sunshine ScholarshipFoundation" in 2011. Since its establishment for more than ten years, the foundation has adhered to the purpose of"dedicating love and benefiting society", actively provided financial assistance to poverty families and students, and hasbeen widely praised by the society. The non-profit public welfare organization is organized by the chairman of HighpowerTechnology and internal employees, self-managed, and supervised by employees. With the purpose of supporting poorand out-of-school children to complete their studies, it helps hundreds of poor and unstudied children return to schooland helps schools in remote areas improve teaching conditions.
During the reporting period, Highpower Technology was trying to pour more love and support into the local poor areasof their operation sites, provide more care and expectations for students under the blue sky, and jointly move towardsthe goal of "creating a better life of people".
Sunshine Student ActivityDuring the reporting period, Highpower Technology continued to pay attention to and express condolences topoor families in Maan Town, Huizhou, and distributed warm necessities and study packages to poor families.On September 26, 2023, we successfully held a donation activity of "Sunshine Scholarship Foundation",donating a total of RMB 80,000 of materials to six primary schools in Maan Town, benefiting 352 students, andencouraging children to study hard, and contribute to the society in the future.At the ceremony, the representatives of the school announced the list of winners of the "HighpowerScholarship". The senior director of human resources of the Company delivered a speech on behalf of thefoundation, conveying the corporate culture concept of "being enthusiastic about education and daring toassume social responsibility" that the group has always adhered to. In the future, Highpower Technology willcontinue to devote itself to public welfare undertakings, providing financial assistance to more needy familiesand students to help them complete their studies.
? From 2020 to 2024, an annual donation of RMB 400,000 to support education in Jiangxi University of Technology.
?From 2020 to 2024, it will donate RMB 120,000 to support the education of Harbin Institute of Technology every year.
?From 2021 to 2025, it will donate RMB 500,000 annually to support the education of South China University ofTechnology.?From 2023 to 2025, RMB 600,000 will be donated annually to support the education development of Central SouthUniversity.
?In March 2023, RMB 30,000 was donated to support the spiritual civilization construction of Longgang District.
?In April 2023, the targeted donation of RMB 84,000 was used to support education development of Maan Town,Huizhou City.?In June 2023, donated RMB 30,000 to the "Green Beauty Guangdong Huizhou Ecological Construction Action Fund
?In June 2023, RMB 100,000 was donated to the "June 30 Guangdong Poverty Alleviation Day" to care for mothersand children in poverty?In November 2023, donated RMB 100,000 to Huicheng District for air-conditioning project.
Immaculate QualityAbout Highpower Technology2023Environmental，Social and Governance (ESG) ReportHonest GovernanceGreen PlanetHarmonious LifeAppendix
02.Immaculate Quality
Highpower Technology regards product quality and customerpursuit as the embodiment of value. Adhering to the corevalues of "customer achievement, openness and win-win,rigorous and pragmatic, self-criticism", we base ourselveson product quality and innovation, lead the high-qualityindustrial ecology, take R&D and innovation as the cornerstone,intelligent manufacturing as the starting point, and high-qualitydelivery as the standard, constantly carry out technologyaccumulation and product innovation and R&D, bring excellentquality to customers with a high degree of independent R&Dcapabilities and global market competitiveness, and rely onresponsible sustainable supply chain to help thelong-term development of the industry.
? Product Quality and Customer Service? Innovative R&D? Responsible Procurement
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Highpower Technology adheres to customer-centric, regards quality as an important cornerstone of enterprisedevelopment, actively pursues lean production and excellent service, and creates high-quality products withcraftsmanship spirit to meet customer needs.
Highpower Technology insists on transferring quality into a reputation, improving product quality, process quality andwork quality in an all-round way, and has established systematic end-to-end quality control internally, respondingquickly to customer service, adhering to customer-oriented product lifecycle quality management, covering customerconcerns, design, manufacturing, delivery quality, etc
Highpower Technology adheres to the quality management policy of "high-quality management, customer-oriented,excellence and continuous improvement", and ?rmly adheres to the bottom line of quality. We continue to optimizethe quality management system and mechanism, and has established an internal and comprehensive qualitymanagement system, including ISO 9001:2015 Quality Management System, IATF 16949:2016 Automotive QualityManagement System, and ISO 13485:2016 Medical Device Quality Management System.
Quality Management System
Product Quality and Customer Service
Product Quality
Product Quality and SafetyHighpower Technology attaches great importance to product quality and safety, and regards safety defense line asone of the important quality standards of products. We are committed to continuously improving product quality,with the spirit of craftsmanship excellence seriously treat the production of each battery, and constantly improving theproduct quality and safety testing process and traceability mechanism.
We are equipped with more than 4,000 test equipment and 45,000 test channels for product reliability testing, coveringphysical and chemical analysis, electrothermal analysis, electrical performance testing, reliability testing, safety testing, etc.,to ensure the e?ective operation of the quality and safety management system and prevent any safety accidents.IATF 16949:2016ISO 9001:2015ISO 13485:2016
MESSPC
Battery InformationManagement System
Realize accurate and fullprocess traceability
Statistical ProcessControl
Real-time monitoring ofcritical processes
Qualityreputation
CorecompetitivenessSelf-responsibleQuality of all employeesCompliancePrevention process qualityEnd-to-end quality controlITR closed-loop product quality
Customer Focus
Manufacturing
Delivery
DesignDevelopment
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Computer tomography (CT)
Inductively coupled plasma emission spectrometer (ICP)
Scanning electron microscope (SEM)
Gas chromatography-mass spectrometer (GC-MS)
X-ray di?ractometer (XRD)
Synchronous Thermal Analyzer (TG-DSC)
3D visual non-destructive and defect analysis, dimensional measurement
Measurement of metal element content
Observe the status of positive electrode, negative electrode and diaphragm
Analyze the type and content of electrolyte
Measurement of lithium cobaltate, lithium nickel-cobalt manganate,
graphite and other battery materials
Thermal stability of analytical materialsMaterial analysis, product analysis and reliability test equipment
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During the reporting period, our achievements include but are not limited to:
RY-GC-MS RoHS: Testing equipment for testing plasticizers and ?ame retardants in electronic and electrical products.
CTF: Customer's Testing Facilities.
DEKRA: Deutsche Kraftfahrzeug ü berwachungsverein, formerly German Motor Vehicle Supervisory Association.
UL: Underwriteries Laboratories, Inc. Certi?ed Safety Certi?cation for the North American market, voluntary certi?cation
Quality improvementHighpower Technology continuously improves the quality managementlevel, adopts advanced management concepts and continuously optimizes the quality level. Webuild a production line with zero defects according to the production rhythm, lock and arrangework orders according to the plan, solve problems in a targeted manner, carry out productionand operation in a comprehensive, standardized and orderly manner, and truly achieve productrhythm, process monitoring and results feedback on business statements, achieving continuousimprovement.We constantly improve the product-centric mechanism to ensure product quality and safety,standardize the QPA audit mechanism, conduct self-examination and self-correction, andcontinuously improve product quality.
Quality Improvement
Product-centric, end-to-end safety and quality management
Quality management infrastructure and system construction
Customer or marketdemand management
Material development and
selection
Routing and parameterdesign
Customer complaintsand handlingNew Product Development
Quality Management
Supplier selection andcerti?cation
Maintenance of equipment
?xure
FA failure analysisDevelopment Review andQuality Issue Closed Loop
Supplier qualitymanagement
Engineering changemanagement
Shipping quality control
and improvementDevelopment deliverablescompleteness andcompliance
Compliance management
Process quality controland improvementNew product qualitystandards
IQC incoming inspection
Pollutant andenvironmentalmanagementIntroduction of newequipment and processes
Vendor performancemanagement
Disposal of nonconforming
productsDFX, TA, DOE
Continuous improvementof supplier quality
ORT, SPC management
New technologydevelopment qualitymanagement
Certi?ed：Material testingand certi?cation
Design and acceptance ofequipment ?xture
RMA analysis andimprovementSummarizeand promotebest practicesin productdesign, processconstructionand control
Closed loop problemmanagement, analysis,summarization andimprovement
Establish aknowledgebase, regularlyreview andcarry outcontinuousimprovementactivities
Problemsolving, KPImonitoringandsystematicimprovementProjectmanagementMatrixManagementProcessCompletenessProcessCompliance
Project managementsystemMaterialmanagementManufacturingexecution systemQuality managementsystem
Construction oftalent echelonEmpowermentand incentivesTraining andmentoring
Organization and
process
Software andhardware system
Quality cultureconstructionQuality systemmanagementEnvironmentalprotectionand safetymanagement
Quality system safetyTalent and incentives
Data analysisSix SigmamanagementLean productionQuality App
Methodology
and tool
Qualitymonitoring,analysis andimprovementContinuousimprovement,summary andpromotion
Laboratory testing capabilities cover consumer, small power, energy storage, vehicle-mounted, standby battery products.In terms of vehicle-mounted, energy storage and power backup, testing resourceshave been continuously invested, including 1 ms battery test cabinet, large box walk-inthermostat, high voltage and large current battery tester, etc.12,500 new test channels, computer tomography equipment, RY-GC-MS RoHS 2.0
detectionequipment, etc.During the reporting period, new authorization of CTF
witness laboratory qualificationauthorized by DEKRA
and UL
was obtained.
R&D Quality
Quality ofincoming material
Manufacturing
quality
Aftersales quality
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Highpower Technology Continues to Promote IntelligentManufacturing
We attach great importance to the digitalization andintellectualization of quality management, continuouslypromoting the deployment of online quality managementsystems and coordinating the construction of smartfactories. We use AGV Technology, Import SAP-ERP、WMS Warehouse management system, as well as mobileinspection system and other advanced enterprisemanagement systems, to achieve a high degree ofautomation and large-scale manufacturing.
Tier-level QPA audit
Customer dimension QPA audit
(Customer Audit Checklist)
Internal unusual audit(Implementation audit of key exceptions)
Internal dimension QPA audit(Internal Audit Checklist)
Special implementation audit(Foreign matters, anti-stupidity, traceability, etc.)
Customer complaints & feedback audit(Implementation review)
Expert speci?c QPA(High-level diagnosis)
QPA review
TransverseTransverse
PortraitPortrait
Internal audit list
Review
Review
Analysis
Standardization
?Review plan?Team preparation
?Execution con?rmation?Validation
?Audit result?Improvement
?Course Learning? Documentation
Director
IPQC
ManagerSupervisor & Engineer
QuarterlyMonthlyWeeklyDaily
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Production data acquisition system
Smart factory construction
We have built a production data acquisition systemin Shenzhen Nickel Hydrogen Plant to achievereal-time online update of the whole process ofworkshop production and operation, and the datacontent such as production process and productoutput is clear at a glance on the online systemto promote the safe and efficient operation of theplant.
Guangdong Highpower continues to promote the construction of smart factories on the basis of digital factories,Internet of Things and equipment monitoring technologies, with the purpose of creating new customer valueand the best user experience. By covering a wide range of collaboration networks and knowledge sets, we arecommitted to promoting the horizontal wide area integration of human-centered value networks and equipment-centric manufacturing networks, as well as the bottom-up and top-down vertical penetration integration of dataand information, and ultimately realizing the deep integration of the whole life cycle of products and equipmentand the complete value chain of the enterprise, enabling e?cient management of product quality.
The Company actively carries out quality management training and publicity activities to promote the communicationand exchange of quality and safety experience. We attach importance to the construction of quality culture and awareness.Through quality and safety knowledge competition, "Quality Guard Star" evaluation, quality improvement proposal,continuous improvement activities, etc., we encourage employees to cooperate and optimize quality in a rich form, form aquality awareness publicity covering all employees, and improve the quality management level from the source.
Quality Culture Construction
? Hold quality and safety monthly activity once a year, conduct quality and safety knowledge competition,
provide incentive prizes to improve sta? enthusiasm? Standardize three rates and 5WHY, backtrack and dig deep into the root cause of problems, e?ectively close
more than 50 reports and improve the depth and e?ectiveness of problem solving? Organize quality continuous improvement activities every year, and carry out 13 quality improvement
projects, mainly involving e?ciency improvement and quality improvement? Encourage all employees to participate in quality improvement and put forward 510 e?ective improvement
proposals
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Relying on the continuous pursuit of excellence in product quality, we have improved product quality by introducing MES system and establishing automatic production line, actively shares experience with the industry, and promotes innovationand progress of the whole industry while continuously improving its product quality competitiveness. During the reporting period, our quality improvement achievements include but are not limited to:
Results of Quality Management Improvement
Establish order：
? Establish and improve the data management module under the T-1 MES system, automatically collect real-time quality data online, and continuously analyze andimprove the straight-through rate.
? A total of 28 stations in the whole process of lithium battery products automatically collect quality data.? Four automatic pull wires, one sample line and nine real-time automatic quality data acquisition points are established for the small lithium battery core section, four
automatic lines and three human-machine cooperation lines are established for the PACK section, and the equipment automation is further improved.Improvement results：
? The new vehicle-mounted product line of nickel hydrogen products increased the e?ciency from winding to sealing by 15%, and the defective rate decreased by 20%.? The straight-through rate of lithium battery cylinder and ?exible battery product lines has steadily increased, and cylindrical customer complaints have decreased by
50% annually for three consecutive years.
? The number of customer complaints of small lithium battery products in 23 years decreased by 55.8% compared with the same period through the quality
management method of strict IQC entry and strict OQC exit.? It has a number of PACK, DIP, energy storage automation production lines and four fully automatic SMT lines, and the quali?ed rate of H PACK ?nished products has
steadily increased.
Lithium ion battery? CE-EMC Certi?cation? CB Certi?cation? CCC Certi?cation? UL Certi?cation? WERCS Certi?cation
? PSE Certi?cation? KC Certi?cation? GOST-R Certi?cation? TISI Certi?cation? BSMI Certi?cation
? BIS Certi?cation? UN38.3 Certi?cation? FCC Certi?cation? RCM Certi?cation? CTIA Certi?cation
Nickel metal hydride battery
?CE-EMC Certi?cation?CB Certi?cation?UL Certi?cation
?WERCS Certi?cation
?KC Certi?cation
?GOST-R Certi?cation
?TISI Certi?cation
?BIS Certi?cation
?DOC Certi?cation
By the end of the reporting period, our lithium-ion batteries and nickel-hydrogen batteries had passed the certi?cation of many domestic and foreign products.
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In the customer service system construction module, the three systems work together to provide customers withexcellent service experience.
In order to further enhance the professional ability of marketing personnel in customer relationship maintenanceand customer service, and cultivate market segments, we actively carry out customer service related training, buildthe foundation of customer relationship and dig deep into customer needs, and strive to provide customers withprofessional solutions to achieve customer business success and win-win cooperation
We are committed to building transparent and win-win responsible marketing relationships with our customers. Interms of online media publicity, advertising publicity, exhibition publicity and other aspects, theInformation ReleaseManagement Standardhas been formulated internally to strictly implement the management process of the Group'sexternal information release and advertising marketing; In the customer development stage and cooperation stage,we take the initiative to sign con?dentiality agreements with customers, respect and protect customers' trade secretsthroughout the LTC process. When participating in marketing activities such as exhibition promotion, we activelycomply with local laws and regulations, insist on legal, honest, accurate and scienti?c communication with customers,and carry out all marketing activities in a responsible manner. We actively train and publicize responsible marketingto relevant employees. During the reporting period, our responsible marketing training lasted 38 hours, covering allmembers of the marketing center.
Responsible marketing
"Strategic questioning and relationship in?uence" trainingOn May 8, 2023, we held two "Strategic Question andRelationship Impact" trainings, which provided professionaltraining for marketing center sta? in customer communication,customer visit, customer relationship maintenance, customerdemand management, etc., and improved the professionalismof marketing center sta?.
HighpowerTechnology adheres to the customer-centric service concept of "products satisfy users and services satisfycustomers" by establishing an end-to-end management mechanism for product lines, connecting the three majorsystems of marketing system, R&D system and integrated supply chain system, and adopting the "iron triangle"collaborative operation mode. It fully listens to the voice of customers, excavates the explicit and implicit needs ofcustomers, and establishes three-dimensional customer relations, continuously improving customer satisfaction.
Customer service management
Customer service
In 2023, Highpower Technology and its subsidiaries won the ExcellentSupplier Award issued by Logitech, LG, Mindray and other customers.Dell and GoPro awarded the Excellent Individual Award based on theexcellent performance of Highpower employees.
?
Marketing system: As a "radar", through precise market analysis,market intelligence acquisition, high-frequency communication withcustomers, listening to customers' voices, fully understanding andanalyzing customers' pain points and accurately feeding back andsharing them internally, the three systems form a joint force to providee?ective solutions and adhere to value contribution.Integrated supply chain system: As a "stabilizer", it adheresto customer-oriented, quickly responds to customer needsand matches resources, improves delivery level and customersatisfaction, promotes lean production, continuously buildsSQDC capabilities, and prepares to build a manufacturing base inVietnam to help customers succeed in business.R&D system: As an "engine", based on accurate and e?cientinterpretation of customer product planning and applicationscenarios, by establishing a four-level R&D system and deeplyintegrating the concept of integrated product development (IPD),the plan and review are fully veri?ed and risks are identi?ed inadvance from the identi?cation of new product and new projectrequirements to the transfer to mass production, so as to ensurecustomer project progress and product competitiveness. Also, weavoid intellectual property risks through patent protection.
Customersatisfaction
Immaculate QualityAbout Highpower Technology2023Environmental，Social and Governance (ESG) ReportHonest GovernanceGreen PlanetHarmonious LifeAppendix
In response to customer complaints, we internally reviewed and optimized theCustomer Complaint Handling Processand othersystems, standardized the processing processes and procedures for business customer complaints, quality customer complaintsand order delivery customer complaints, and set upCustomer Return and Replacement Processing Processto provide basis andstandards for the upgrading and return and replacement of customer complaints in accordance with the process. We adhere to theprinciple of "customer-centric and product-centric", take responsibility for the life cycle of products, establish on-site support teamsoverseas, shorten the feedback time of customer complaints, and practice the principle of "2485". At the same time, we establishedFA
The analysis team, composed of top FA experts in each module industry, has professional knowledge on failure mode and failuremechanism of lithium-ion batteries, analyzes and improves defective products complained by customers, and reports to the client afterverifying the improvement e?ect, forming a closed-loop of customer complaint processing and feedback.
Customer Complaints and Handling
Customer Satisfaction Survey
"2485" principle
First response in2h
Take emergency actions and the 2
ndresponse in24h
Analyze the reason, develop countermeasurements, and the 3
rdresponse in
48h Implement strategy
Implement countermeasurements, verify the validity and the 4
thresponse in5 days
We actively improve the customer complaint handling process, and divide customer complaints into three categories: businesscustomer complaints, quality customer complaints and order delivery customer complaints. The degree is classi?ed into di?erentlevels, and the corresponding processing ?ow is set.
FA: Failure Analysis.
In order to regularly evaluate the results of customer service and fully listen to customers,we conduct customer satisfaction surveys annually. During the reporting period, thecompany's customer satisfaction survey results were 90.2 points, reaching the verysatisfactory standard. In the current customer satisfaction survey, the most satis?ed itemsof customers are: product quality, new product development, technological advancementand service professionalism. A slight decline from the previous year's satisfaction surveywas in meeting emergency order deliveries. In view of the decline, we further visitedcustomers in depth, fully communicated the reasons and improvement measures,established closed-loop improvement measures and con?rmed the improvement e?ectwith customers to ensure that customer problems were solved.
Highpower Technology Customer Satisfaction Survey Dimensions
DeliveryQualityInnovationServiceSynthesis
our client complaint problemclosure rate is
%
During the reporting period
① Failure mode and grade
②Background investigation
③Material containment
① 8D team
establishment
② Failure analysis
plan
① Defect introduction
point avoidance
② Defect control point
leakage prevention
③ Management defect
system optimization
①Risk assessment
②Treatment scheme
① Reporting customers
② Common problem
level development
① Improvement measures
and e?ect evaluation
② Measures solidi?cation
and audit
Customer demand-orientedProfessional analysis team, rapid response mechanism, active cooperation, e?cient progress update and feedback
Customer complaint handling processCustomerdemand
ClosethecaseInformationcon?rmation
Root causeanalysis
Improvementmeasures
Treatmentscheme
Reporting/summarizing
E?ectfollow-up
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Innovative R&D
Based on the vision of "becoming a world-class clean energy solution provider and creating a better life for mankind",Highpower Technology has always taken innovative R&D as an important direction of strategic support, committed toR&D and promotion of cutting-edge technology, driving long-term development and empowering the battery industry.Therefore, we deeply integrate the concept of Integrated Product Development (IPD) to "plan generation, reservegeneration, develop generation and apply generation". For the R&D policy, a four-level R&D system with forward-looking research, development of new materials, new processes and new equipment, development of new platforms,and design and development of new products as the main contents has been formed, which closely combinestheoretical research, platform development, design and development with production and manufacturing to achievemulti-party coordination.
Integrated Product Development (IPD) Concept4-level R&D System
Highpower 4-level R&D system
Highpower Technology's four-level R&D system
Prospective researchDevelopment of new materials,processes and equipmentNew platform R&DNew product design and development
T-DCP: Temporary Decision Check Point
ADCP: Available Decision Check Point
LDCP: End of Life Decision Check Point
BMT: Business Management Team
PDT: Product Development Team,
Charter DCP: Charter Decision Check Point
PDCP: Plan Decision Check Point
Charter DCP
T-DCP
TR3TR4TR5TR6
BMT
Business decisionsPDT
Technical evaluationTR4A
PDCP
ADCP
LDCP
TR1TR2
Conceptual planningphase
Developmentvalidation phase
Pilot certi?cationphase
Mass productionvalidation phase
Release
R&D Model
R&D Policy
Highpower R&D Policy
PlanningGeneration
DevelopmentGenerationReserveGeneration
ApplicationGeneration
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Highpower Technology R&D Organization StructureInnovation
Lab
ResearchInstitute
AdvancedProcess R&DDepartment
ProductDevelopmentDepartment
ExperimentCenter
TestingCenter
R&D system
Highpower Technology Co., Ltd. attaches great importance to the construction of R&D talent team, and insists onrecruiting outstanding fresh graduates from 985, 211 and other colleges as a new force in scienti?c and technologicalresearch and development for independent training. The Company has established a sound talent training plan andadopted a R&D talent management system combining talent echelon training scheme, long-term service incentive forR&D talents and real-time project incentive scheme. It emphasizes the principle of being contribution-oriented andresults-oriented, and encourages R&D talents to create value for customers from the four dimensions of salary, welfare,development and recognition. As the end of the reporting period, the Company has a research and development teamof more than 1,000 talents, involving electrochemistry, material chemistry, physical chemistry, mechanical design,electronics and other disciplines.
Highpower Technology has established a research and development system, and has established innovationlaboratories (focusing on forward-looking research), research institutes (focusing on the development of new materialsand new platforms), advanced process research and development departments (focusing on the development of newprocesses and new equipment), product development departments (focusing on the design and development of newproducts) and other departments to further re?ne the management of innovation research and development.
Highpower Technology pays close attention to market demand and the development trend of cutting-edge technology inthe industry, focusing on the research and development of application solutions such as high safety, high energy densityand long cycle life, starting from application scenarios. During the reporting period, the company has a total of 400+ R&Dprojects in progress.
In the future, we will continue to increase the development of forward-looking innovation, materials, electrochemicalsystem platforms, new processes and new equipment, continuously optimize the product structure, and improve thelayout of the company's product applications.
R&D organizational structureR&D projects
Talent building
R&D talents1,000+
total R&D projects in progress achieved400+
During the reporting period
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Batteries contain a large number of valuable metals such as lithium, nickel and cobalt. The reserves of these metalsin nature are limited. Recycling is not only conducive to ensuring the supply of these metals, but also can reduce theexploitation of natural resources and protect the ecological environment.We use the battery recycling quali?cations of related companies to promote the recycling and cascade utilization ofpower batteries for waste new energy vehicles, as well as the harmless treatment of waste batteries. At present, wehave promoted suppliers to complete 6 UL2809 certi?cation of cathode main materials, 6 UL2809 certi?cation of twoimportant strategic customers of lithium power, and 33 UL2809 certi?cation of nickel hydrogen products.
Battery material recycling process
After evaluating the power batteriesof retired new energy vehicles,priority shall be given to cascadeutilization to save resources to themaximum extent.
The affiliated company uses thepatented power battery recyclingtechnology with its own intellectualproperty rights to smelt the pretreatedbattery powder into metal salt products.The combination of physical methodand pyrometallurgical method isused to preliminarily separate variousmetals from discarded batteries anddiscarded batteries after cascadeutilization.
Closed-circuit recycling cooperation ecological chain of battery recyclingHighpower Technology Product UL2809 Certi?cate
Battery recycling technology
Battery
Material manufacturer
Recycling enterprise
Cascade users
Battery applicationcompanies
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R&D and innovation achievements
Highpower Technology has mastered key industry technologies such as "high energy density battery technology""battery electrolyte technology" "high temperature battery technology" "key technology of rapid battery chargingand discharging" "key technology of high safety battery" and "key technology of battery protection and control BMS"through independent research and development.
Key Technology
Highpower Technology has made major breakthroughs in 14 R&D platforms.R&D Platform
Platform nameTechnological breakthroughsLithium Battery - HighEnergy Density
Achieve comprehensive improvement of energy density, charging and dischargingperformance and service life. The battery life of the high energy density system can beimproved by 20%, comprehensively improving the experience of end users.Lithium Battery - Safety
Platform
Innovatively developed a battery that can greatly improve the safety performance of thebattery cell while supporting rapid charging, with a cycle life of more than 1,000 times.Lithium Battery - QuickCharging Platform
It can greatly improve the charging efficiency of the battery, achieve 10 minutes ofcharging, have a whole day of use experience, and the battery cycle life can reach morethan 1,600 times.High energy density powerdeduction platform
The self-developed electrochemical system platform is adopted to achieve comprehensiveimprovement of energy density, charging e?ciency and service life, reaching 3C chargingfor 20min, charging capacity ≥ 80%, and cycle life of 1,000 weeks.High energy density silicon
carbon platform
Self-developed and built a wearable silicon anode platform and achieved massproduction. During the reporting period, the company developed a new generation ofhigh-energy density batteries in the wearable ?eld to improve the expansion of pole piecesand achieve the improvement of energy density. A small wearable battery of 200 mAh hasan energy density of up to 606 Wh/L and a 30 min charge of up to 90% SOC.Ultra high power batteryplatform
The development of ultra-high power battery technology can greatly reduce batteryimpedance, support large rate rapid charge and discharge, and signi?cantly reduce thetemperature rise of charge and discharge, with a cycle life of more than 1,000 times.
Platform nameTechnological breakthroughs
T-BOX wide temperaturestandby power platform
The excellent T-BOX backup battery with extremely low temperature working capacity islaunched, which has the characteristics of long life, over-discharge resistance and highsafety. The service life of the general vehicle can reach more than 10 years under thetemperature spectrum, and can adapt to the low-temperature environment of -30~40℃,taking into account the durability of 1000h under the high temperature of 85℃. It is atthe leading level in the vehicle-mounted backup industry, and develops the applicationscenarios under the vehicle-mounted wide temperature conditions.Nickel zinc battery platform
A technology platform for suppressing self-discharge and enhancing life has been initiallybuilt, which has the characteristics of stable life, self-discharge suppression and highsafety. The cycle life can reach 300 times, and the self-discharge reaches the same levelas that of nickel hydrogen low self-discharge products, which is in the leading level in civilproducts.Sodium ion battery platform
Carry out special research and development on positive electrode, negative electrodeand electrolyte and appropriate battery structure design, make breakthroughs in energydensity and cycle life, and build an electrochemical system with resource advantages andcomprehensive competitiveness.Large energy storageproduct platform
The special energy storage core product line is rich, with the characteristics of high safety,long cycle and high consistency and stability. It can realize 10,000 cycles, and has theadvantages of independent design of structural parts, high airtightness, strong torsionresistance of pole column, high temperature resistance, salt spray and other extremeenvironment compression resistance, which can meet the service life of 20 years.Portable energy storageplatform
It has a new independent ID appearance, multi-function and other novel designs, meetingthe rich application needs of AC input fast 1.5H charging, AC high-power 200% output,PD 100W, car charging 120W, wireless charging 15W, supporting power pack expansion,mobile phone APP display and control.Household energy storage
platform
New self-developed home storage series, including low-voltage 5KWh stackable expansionintegrated machine, low-voltage 5KWh expandable split machine and other series.Replaceable batteryplatform
It supports 4~16S ternary and LPF batteries, with a capacity of max 100Ah, supportscontinuous discharge of large current 100A, fast charge of 50A, and has perfect charge anddischarge protection strategy, high-precision SOC, and communication function with hostCAN/485.Solar skylight hightemperature batteryplatform
Based on independent research and development of high-temperature power backuptechnology, the Company has launched a solar sunroof backup battery with extremelyhigh temperature working capability, featuring long service life, resistance to ?oat chargingand high safety, with a life expectancy of more than 10 years under the daily temperaturespectrum, which can be adapted to applications at high temperatures of up to 80°C fora long period of time, and help the company develop the application scenarios for solarsunroofs and other applications under extreme temperature conditions.
Immaculate QualityAbout Highpower Technology2023Environmental，Social and Governance (ESG) ReportHonest GovernanceGreen PlanetHarmonious LifeAppendix
Honorary Awards
Second Prize for Scienti?c and Technological ProgressProvincal Enterprise Technology Center
Projects to improve key links of the industrial chain13th China Battery New Energy Industry Annual
Innovation Award
New Generation IT and Industry Development Project2023 Advanced Scienti?c and Technological
Innovation Unit
2023 Shenzhen Longhua District IntellectualProperty Advantage Enterprise
The 9th Guangdong Patent Award
Manufacturing Champion Products
Guangdong Lithium Ion Power and EnergyStorage Battery Engineering Technology
Research Center
Projects to improve key links of the industrial chain
The 8th Guangdong Patent Award
Shenzhen Science and TechnologyInnovation Commission
Guangdong Branch of General Administration ofCustoms, Guangdong Provincial Department of Industryand Information Technology, Guangdong ProvincialDepartment of Finance, General Administration of Taxation,
Guangdong Provincial Tax Bureau
Shenzhen Municipal Bureau of Industry andInformation Technology
Hairong Network, Battery Network, I Love Tram
Network, Energy Finance Network
Guangdong Provincial Department of Industry and
Information Technology
Guangdong Battery Industry AssociationLonghua Regulatory Bureau of Shenzhen Municipal
Market
Guangdong Provincial People'sGovernment
Ministry of Industry and Information Technology ofthe People's Republic of China and China Federation
of Industrial Economic
Department of Science and Technology of
Guangdong Province
Shenzhen Municipal Bureau of Industry andInformation Technology
Guangdong Provincial People's Government
Key technology research and development andindustrial application project of high-voltage and high-
energy density lithium battery
Huizhou Highpower
Technical Development and Industrialization Project of WideTemperature and Long-Life Backup Battery for IntelligentNetwork Connected Vehicle Terminal T-BOX System
Highpower Technology
R&D and industrialization project of high-energy long-life polymer lithium batteries for high-end notebooks
Highpower Technology
Shupeng Technology
Invention patent 【electrolyte for lithium ion batteryand lithium ion battery containing the electrolyte】
Nickel hydrogen batteries for consumer electronics
Huizhou Highpower
High-density and large-capacity parallel expansionenergy storage battery module R&D andindustrialization project
Invention patent 【A positive electrode activematerial and its preparation method, positiveelectrode sheet and lithium ion battery】
2023 Bellwether
2023 Advanced Energy Storage Enterprise
Guangdong Battery Industry Association
Guangdong Battery Industry Association
Highpower Technology
Highpower Technology
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Highpower Technology has established close cooperative relations with well-known universities such as Central SouthUniversity, Harbin Institute of Technology, South China University of Technology and Southern University of Scienceand Technology, aiming at breakthroughs in new materials and technologies, and based on cutting-edge science andtechnology. At the same time, we have practiced the concept of industry feedback education, and set up "HighpowerAward (Teaching) Fund" in Central South University, South China University of Technology, Harbin Institute ofTechnology and other universities. The company has also been recognized as a "post-doctoral innovation practicebase" by the Shenzhen Human Resources and Social Security Bureau.
We actively participate in the formulation of national standards and industry standards, enhance the company's in?uenceand promote the development of the industry.
We actively join industry associations to promote industry exchanges, learn from each other and work together.
Highpower Technology has always paid attention to overseas exchanges and cooperation to enhance its scienti?cand technological innovation capabilities. In 2023, we participated in the40th International Battery Symposiumand Exhibition. In terms of overseas cooperation, we also carry out technical exchanges with overseas technologycompanies such as AMX, LYJ and NVL,And jointly initiate the R&D plan.
Southern University of Science and Technology and Highpower Technology Cooperation New
Energy Joint Laboratory
Association nameParticipating companiesMembership Level
China Chemical and Physical Power Industry Association
Highpower TechnologyVice chairman UnitShupeng TechnologyMember EntityHuizhou HighpowerMember EntityIcon EnergyMember EntityRare Earth Industry AssociationHighpower TechnologyExecutive Director UnitChina Rare Earth SocietyHighpower TechnologyCouncil MemberShenzhen Robot Industry AssociationIcon EnergyCouncil Member
Highpower TechnologyMember EntityElectronic Cigarette Industry Committee of China Electronic Chamberof Commerce
Highpower TechnologyExecutive Director UnitTask Force on Safety Standards for Lithium Ion Batteries
Icon EnergyPlenipotentiary
Shupeng TechnologyPlenipotentiary
Huizhou HighpowerPlenipotentiaryIEEE STANDARDS ASSOCIATIONHuizhou HighpowerMember EntityZhongguancun New Battery Technology Innovation AllianceHighpower TechnologyVice Chairman UnitGuangdong Battery Industry AssociationHighpower TechnologyHonorary President UnitGuangdong Science and Technology Magazine Highpower TechnologyCouncil MemberGuangdong High Technology Industry Chamber of CommerceHighpower TechnologyVice President Unit
Industry Association Membership of Highpower Technology
Highpower Technology's participation in standard formulation
Industry Mutual Bene?ts
Standard SettingSchool Enterprise Cooperation
Overseas Cooperation
Industry Association
NumberName of standardLevel of standardCode of standardWay of participation
Safety requirements for production of lithium-ion batteries and batterypacks
□National ■IndustrialSJ/T 11798-2022□Host ■Participation
Requirements for nickel metal hydride batteries for intelligent networkvehicle-mounted terminals
□National ■IndustrialT/CIAPS0014-2021■Participation □Host
Treatment method of waste recycling of nickel hydrogen batterymaterials
■National □IndustrialGB/T 33062-2016□Host ■Participation4Recovery method of nickel and cobalt from waste batteries■National □IndustrialHG/T 5019-2016□Host ■Participation5Test procedures for nickel metal hydride batteries for electric vehicles□National ■IndustrialDB44/T1478-2014□Host ■Participation
Speci?cation for recycling of nickel metal hydride batteries for electricvehicles
□National ■IndustrialDB44/T1477-2014□Host ■Participation
Immaculate QualityAbout Highpower Technology2023Environmental，Social and Governance (ESG) ReportHonest GovernanceGreen PlanetHarmonious LifeAppendix
Highpower Technology pays attention to itsown intellectual property protection and has aperfect intellectual property control mechanism.We have established policies such asIntellectualProperty Protection Policy, Project IntellectualProperty Management ProcessandHighpowerGroup Intellectual Property ApplicationandReward Management Regulationsto clarifythe management regulations on intellectualproperty application, intellectual property riskmanagement and control of key projects andintellectual property rewards. As of the endof the reporting period, Huizhou Highpowerhas obtained GB/T 29490 Intellectual PropertyManagement System Certi?cation.
Highpower Technology pays attention to its ownintellectual property protection. In 2023, 490+ newpatents were ?led and 240+ new patents were granted,a signi?cant increase from the previous year.
Highpower Technology pays attention to the protection of its own intellectual property rights, and also pays attentionto avoiding infringing on the intellectual property rights of others. We have set up a professional intellectual propertymanagement team internally, and hired professionals with professional qualifications and intellectual propertyconsultant experts jointly provide the Company with patent search investigation, patent layout, infringement analysisand avoidance services. During the reporting period, the Company did not have any major intellectual propertyinfringement incidents.
Intellectual Property
Risk Management
Intellectual PropertyManagement System Certi?cation
During the reporting periodthe number of major intellectualproperty infringement incidents is
By the end of 2023
the Company had
Control Mechanism
Self-protection of IntellectualProperty Rights
Highpower Technology pays attention to the creation of an intellectual property atmosphere. In order to improveemployees' awareness of intellectual property protection, the company actively organizes and carries out intellectualproperty related training for R&D personnel, intellectual property engineers and other groups, covering basicknowledge of intellectual property, patent mining, patent retrieval, patent risk, patent avoidance, patent intelligenceand other modules. During the reporting period, the total number of participants in intellectual property relatedtraining reached 2,000+. At the same time, combined with the company's intellectual property reward system, letemployees be good at innovation, bene?t from innovation, and stimulate innovation vitality.
Intellectual Property Atmosphere
Statistical items202220232023 YoY growth
Total number of new patent
applications
210+490+130%+Including: Number of newinvention patent applications
60+180+170%+Total number of new patent
authorizations
120+240+90%+
authorized and valid patents
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Responsible Procurement
The stability and sustainability of the supply chain is the goal that Highpower Technology has been pursuing. We arecommitted to cooperating with suppliers, actively communicating, relying on a sound supply chain management system,building an e?cient and stable sustainable supply chain, and establishing mutually bene?cial, win-win, close and friendlycooperative relations.The Company has establishedSupplier Management Regulationsand other internal policies to regulate themanagement standards and processes in the whole process of material and supplier classi?cation, supplier entry,audit and evaluation, performance management, support and empowerment, and termination of cooperation. Duringthe reporting period, the Company formulated and publicly disclosed on the Company's o?cial websiteFundamentalGuidelines for Cooperation with Suppliers.It clarifies our expectations and requirements for suppliers in terms ofcompliance employment, human rights, occupational health and safety, environmental protection, integrity andintegrity, and builds a responsible supply chain.In the supplier entry stage, we have established theSupplier Entry Management Processto set up a targeted evaluationmechanism and assessment dimensions for new suppliers, so as to ensure that the comprehensive performance ofsuppliers meets the company's standards for products and services. We evaluate suppliers around environmental, socialand corporate governance, and require suppliers to manage their secondary suppliers to ensure that their suppliers meetsthe company's standards as well.● Analyze the existed suppliers and demands di?rentiate, and inquire new application for new projects and materialsInquiry new demands
●Select suppliers throuhgh di?erent dimensions , and consider ESG elements into the assessment
● Carry out veri?cation and audit of suppliers● Supplier shall reply to the analysis of on-site audit problems and issue recti?cation within three working daysSupplier entry assessment
●Sign agreements with suppliers that meet the standards, and sign documents such asSupplier Integrity CommitmentLetter, Supplier Intellectual Property Statement and Supplier Social Responsibility Commitment Letterto clarify theirESG performance requirements and ensure compliance with company standardsSign agreement
Highpower Technology Supplier Entry Process
ESG review dimensions of Highpower Technology supplier entrySupplier Management
●Hazardous Substance
Restriction ManagementSystem●Material Product StorageTraceability
Environment
●SA 8000 and ISO 45001 Systems wereestablished● Occupational Health and Safety● Prohibit child labor, forced labor, anti-discrimination
Social
●Anti-corruption and bribery andmoney laundering●The Code of Business ethics andBusines Integrity standard
Governance
For the suppliers that have cooperated with us, the Company has formulated theSupplier Performance Management Processandcontinuously promoted the supplier assessment mechanism to optimize the supplier assessment system. We conduct monthlyperformance summary and quarterly evaluation for all production material suppliers, and evaluate their products and servicesbased on the quality, delivery, cost, technology, and service dimension. The Company divides the assessed suppliers into four levels:
ABCD according to the scoring results, and implements di?erentiated management of supplier due to the performance results. Thismanagement can effectively promote the continuous improvement and capability improvement of suppliers, and carries out thesurvival of the ?ttest and dynamic management of resource pools.Level APreference on new projectsLevel B
Normalization management, e?ective supplement for LevelA suppliers
Level C
Reducing cooperative size and performance, regularly submitcoreective report2 consecutive quarters of Level C, the second quarter will beautomatically reduce to Level D
Level D
Prohibit new project developmentReducing cooperative siza and performance, regularlysubmit coreective report2 consecutive quarters on Level D, will be listed as thesupplier to be eliminated
As at the end of the reporting period, the Company had jointsuppliers
350 companies have conducted sustainabilityrisk assessments for 40 key suppliers to ensure they meetHighpower Technology's ESG management requirements andstandards.
Number of Suppliers by Region
The number and percentage of suppliers by Region
5%95%
Oversea SuppliersLocal Suppliers
Supplier data disclosed by the Company only includes material suppliers, excluding equipment and non-production suppliers.
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Highpower Technology actively carries out supplier communication and exchanges to help suppliers gradually improveproduct quality and technology, achieve common growth of the value chain. According to the supplier assessment results, weprovide basic communication and training for suppliers with weak capabilities. During the reporting period, we carried out anumber of supplier communication activities around the themes of positive electrode materials, negative electrode materials,electrolyte materials, membrane materials, etc., to align the gap between products and services and clarify the direction forfuture optimization. In 2023, we communicated with these four main material suppliers with more than 82 times.
At the same time, Highpower Technology is committed to promoting green carbon reduction in the whole value chain. TheCompany encourages all suppliers to implement energy conservation and emission reduction, and conducts low-carbonemission reduction survey for key suppliers to ensure that the products delivered by suppliers meet the Company's sustainabledevelopment goals. In 2023, Highpower Technology suppliers carried out low-carbon emission reduction work and achievede?ective progress through process optimization, establishment and use of photovoltaic, use of renewable energy and recycledmaterials, and promotion of emission reduction in their supply chain.Supplier Carbon Reduction Management Plan
We include suppliers in the carbon reduction management plan and organize suppliers to participate in thekick-o? meeting of the "Carbon Reduction Plan". During the reporting period, a total of 9 suppliers participatedin the meeting, and jointly exchanged carbon development trends at home and abroad, industry carbondevelopment trends, customer demands, Highpower's existing status analysis and follow-up "carbon" plans.Taking this opportunity, Highpower Technology has mobilized suppliers to reduce carbon and put forwardcorresponding green and low-carbon requirements.
Supplier Empowerment
Con?ict minerals management has become a topic of increasing concern in today's globalized economy. HighpowerTechnology fully understands the multiple impacts of con?ict minerals on society, economy, environment, and ethics,and integrates conflict minerals management into the key elements of the company's sustainable development,promotes peace and stability, protects human rights and environmental sustainability.The Company strictly abides byChina Mineral Supply Chain Due Diligence Management Guidelines, OECD Guidelinesfor Responsible Supply Chain Due Diligence Management of Minerals from Conflict Affected and High-Risk Areas,Dodd-Frank Wall Street Reform and Consumer Protection Lawand other domestic and foreign laws, regulations andinitiatives, and formulates the Company's Internal Con?ict Minerals Management Policy. The materials and packagingrequired to be delivered by suppliers must come from areas not controlled by the armed forces of "con?ict minerals".To ensure that suppliers perform their duties, the Company incorporatesthe Non-Usage of Conflict MineralsCommitmentinto the Supplier Agreement. At the same time, we conducted due diligence on relevant suppliers topromote the verification process of cobalt recycling projects, ensure the legitimacy of raw material sources, andeliminate the use of con?ict minerals.During the reporting period, the Company investigated 37 suppliers in con?ict mineral business.
Main contents on Highpower Technology's Non-Usage of Con?ict Minerals Commitment
The supplier undertakes that the materials and packaging delivered by it meet themanagement requirements stipulated in Highpower Technology'sNon-Usage of ConflictMinerals Commitment
Suppliers will strengthen the management of supply chain, formulate relevant managementpolicies and regulations to e?ectively identify and trace the source of raw materials, ensurethe legality of raw material sources, and prevent con?ict minerals from being put into use
Avoid Con?icts of Minerals
Supplier communication
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03.Green Planet
Highpower Technology is committed to practicing the conceptof green operation with the vision of "becoming a world-class clean energy solution provider and creating abetter life for mankind". We attach great importance toenergy and resource consumption in production activities,continuously reduce pollutant emissions, continuously reducethe impact of our own operations on the natural environmentand biology by improving the environmental managementsystem, and constantly seek a more sustainable green road fordevelopment.
? Environmental Management? Low Carbon Operations
? Pollutant Management? Resource Management
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Environmental Management
In order to practice the green concept, Highpower Technology has continuously improved the environmental management system,regularly carried out environmental management audits, created an environmental protection culture, and consolidated thefoundation of green management. Through comprehensive and e?cient management, we have gradually accumulated experienceand moved forward on the road of exploring green development.Highpower Technology has always adhered to the corporate environmental management concept of "clean, low-carbon andsustainable development", and strictly abided by the Environmental Protection Law of the People's Republic of China and otherrelevant environmental laws and regulations in the place of operation. Adhering to the environmental standardof "compliancewith laws and regulations, pollution prevention, energy conservation and waste reduction, and continuous improvement", wehave continuously improved the Company's environmental management system, and formulated procedure documents such asEnvironmental Factor Identification and Assessment Procedure, Environmental Monitoring and Measurement Control Procedure,Environmental Policy, Objectives, Indicators and Plan Management Procedure, Environmental Impact Management ProcedureandEnvironmental Management Objectives and Indicators, Clearly standardize environmental management procedures, scientificallymonitor environmental performance, and strictly prevent environmental risks. During the reporting period, we formulated andpublicly disclosed theEnvironmental Management Policy of Highpower Technologyon the company's o?cial website, clarifying ourcommitments in energy conservation and emission reduction, emission management, resource management and biodiversity.We have continuously improved the environmental management system, built a clear and effective environmental managementstructure from top to bottom, de?ned the division of responsibilities for environmental management at all levels, and promoted thescienti?c decision-making and implementation of environment-related work.
Highpower Technology Environmental Management Structure
We actively take environmental management measures, and timely identifyenvironmental management gaps and test environmental managementresults through internal and external audits. 5 subsidiaries of HighpowerTechnology involved in productionhave carried out internal environmentalmanagement system verification and third-party audit for all processlinks in the whole plant area. No major nonconformities were found in theenvironmental audit of this year, and the optimization work of each factoryhas been carried out on schedule according to the audit results.By the end of the reporting period, the five subsidiaries of HighpowerTechnology involved in production had obtained ISO 14001 environmentalmanagement system certification. At the same time, Huizhou Highpowerand Shenzhen Highpower have also obtained the national "Green Factory"certi?cation issued by the Ministry of Industry and Information Technology.
ISO 14001 Certi?cation for 5 Subsidiaries
Environmental Management System
ESG Executive Committee
Assisting the Board of Directors in making environmental management decisions; responsible for guiding andformulating the Company's environmental management strategy, management policies, objectives and deployment,conducting environmental management risk and opportunity assessments, monitoring the company's environmentalmanagement practices and improvement progress, and reporting to the Board of Directors on importantenvironmental management issues on a regular basis.Responsible for coordinating all departments to implement the environmental management plan of the Board ofDirectors and the ESG Decision Committee, to ensure the e?ective implementation of the environmental managementstrategy and the e?ective achievement of the objectives, and to report to the ESG Decision Committee on a regularbasis on the status of the environmental management work.Under the direction of the ESG Executive Committee, carry out day-to-day environmental management matters andcontinuously track environmental key metrics to re?ect the Company's environmental management performance.
ESG Decision Committee
ESG Facilitation Team and Implementation Teams
Manufacturing
Department
QualityManagementDepartment
WarehouseSafety O?ceProcessEngineeringDepartment
ProductDevelopmentDepartment
HumanResourcesDepartment
Administration
Department
Head of the CommitteeVice head of the Committee
Highpower Technology invested
RMB61,158,500in environmental managementwith an investment period of about
19,267hours
During the reporting period
Green PlanetAbout Highpower Technology2023Environmental，Social and Governance (ESG) ReportHonest GovernanceImmaculate QualityHarmonious LifeAppendix
Highpower Technology was selected as a national "Green Factory"Environmental protection knowledge training activitiesAdhering to the goal of "green energy, zero-carbon future", Highpower Technology integrates the concept of greendevelopment and management requirements into the whole life cycle of products. Through the application ofnew energy-saving technologies, new materials, new equipment and advanced processes, and energy-savinginnovation and practice from the management and technical levels, it promotes the implementation of cleanerproduction in factories and continuously standardize the "green production" of factories. After self-assessment,third-party evaluation, and recommendation by provincial competent departments of industry and informationtechnology and expert review, Huizhou Highpower won the title of national "Green Factory" of the Ministry ofIndustry and Information Technology on October 16, 2020, and Highpower Technology won the title of national"Green Factory" of the Ministry of Industry and Information Technology on November 8, 2023.
We are committed to promoting environmental awareness, building an environmental protection culturein which all employees participate, actively carrying out environmental protection training and publicityactivities, and encouraging all employees to practice environmental protection and help green. Duringthe reporting period, each factory carried out annual environmental protection knowledge training foremployees to help employees improve their environmental protection awareness.
Highpower Technology attaches great importance to the impact of its own activities on biodiversity and activelycreates a green ecology. We strictly abide by theOpinions on Further Strengthening Biodiversity Protection, the Lawof the People's Republic of China on the Prevention and Control of Soil Pollution, theRegulations on GroundwaterManagement and other relevant laws, regulations and policies, and formulate internal systems such as theRegulations on Land Use and Biodiversity Managementto guide the identi?cation of biodiversity risk factors and theinvestigation of surrounding ecological hazards.During the reporting period, we monitored ecological sensitive targets such as ancient and famous trees, rare andendangered animals and plants around the factories, and no ecological sensitive targets were found in the monitoringresults. At the same time, Highpower Technology has no production bases and operation points in or near the naturalreserve with rich biodiversity. All production and operation activities, products and services of the Company have nothad a signi?cant impact on biodiversity.
BiodiversityPictures of Green Factory
Clean Production Mobilization Conference
Environmental protection knowledge training
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Low-carbon OperationsHighpower Technology aims at "green energy, zero-carbon future" and is committed to becoming the backbone ofgreen manufacturing. The Company actively responds to the national carbon peak and carbon neutrual strategy,attaches great importance to the e?cient use and recycling of energy, actively explores innovative ways of energyconservation, continuously promotes carbon accounting and carbon emission reduction, comprehensively and ?nelypromotes low-carbon operation, and focuses on improving the green value of the Company.
Highpower Technology pays attention to energy conservation and efficient utilization, and actively improves energyefficiency in production and operation. The Company strictly complies with all applicable laws, regulations andindustry standards in the place of operation, such as theEnergy Law of the People's Republic of China and the EnergyConservation Law of the People's Republic of China. In order to regulate internal energy management activities, weformulate internal policies such as Energy and Resources Management Procedures. At the same time, we have built asound energy management structure, set up an energy management team, and set up a special energy conservationinspection team under the team to work together to explore more efficient energy conservation methods in theproduction and operation process.We have taken various energy management measures to promote energy conservation management in an all-round andre?ned way by optimizing production processes, introducing advanced energy-saving technologies and increasing theproportion of green energy use, and have made e?orts to gradually reduce dependence on fossil fuels.
We actively build photovoltaic power generation projects to increase the proportion of clean energy use. By the endof the reporting period, Huizhou Highpower had completed the construction and put into use 1.93 MWh distributedphotovoltaic power generation project, with an annual power generation capacity of about 2.2 million KWH. Thephotovoltaic power generation project is designed in the parking shed mode, and the photovoltaic power generationpanel on the roof of the parking lot is under the photovoltaic shed.
Distributed photovoltaic power generation project
During the reporting period, Guangdong Highpowerintroduced the waste heat recovery technology of aircompressor, making full use of the waste heat generatedin the air compressor to preheat the dehumidificationequipment, and the energy-saving efficiency reached
29.01%. In addition, the waste heat recovery technology
can help reduce the operating temperature of the aircompressor, reduce the failure and maintenance cost ofthe air compressor due to high temperature, prolong theservice life of the equipment while avoiding energy waste,and e?ectively reduce the energy consumption cost.
Air compressor waste heat recovery project
During the reporting period, GuangdongHighpower applied air source heat pump,which uses green and pollution-free refrigerantto absorb heat in the air, and generates hotwater through compressor work for preheatingof dehumidifier. Compared with traditionalelectric water heater or gas water heater, it canreduce carbon emissions and avoid harmfulgases while achieving energy-saving e?ect.
Air source heat pump heating project
During the reporting period, Huizhou Highpower carried out in-depth adjustment and energy-saving optimization of airconditioning system heating and ventilation, added arti?cial intelligence ultra-e?cient optimization control system for endsystem, and deployed high-speed Internet of Things monitoring system for the whole plant to optimize the operation modeof freezing station and end heat balance. The project saves about 6.48 million KWH of electricity annually.Overall energy-saving project of central air conditioning systemEnergy Management
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Highpower Technology actively participated in variousspecial training on energy conservation, carried outvarious energy-saving publicity activities within thecompany, actively responded to the national energy-saving publicity week activities, and improved theawareness of all employees on energy conservationand emission reduction. During the reporting period,Huizhou Highpower participated in the mid-termenergy-saving assessment activities of the 14th Five-YearPlan of Huicheng District as a visiting model enterprise,and passed the mid-term energy-saving acceptanceassessment of the 14th Five-Year Plan organized byHuizhou Development and Reform Bureau.
Highpower Technology energy conservation training and exchange
In the process of development, we implement the concept of green and low-carbon, and insist on regular statistics andemission reduction management for carbon emissions. In order to improve the management of carbon emissions, wehave formulated the Measures for the Management of Greenhouse Gas Inventory Information internally to scienti?callyguide the development and promotion of internal greenhouse gas inventory. We have carried out product carbon footprintaccounting for 7 products of nickel hydrogen and lithium power, of which 4 products have passed the third-party carbonreduction certi?cation
. During the reporting period, 3 subsidiaries have carried out the carbon footprint certi?cation ofGreater Bay Area for a total of 9 products, and 1 subsidiary has passed the ISO 14064 certi?cation.
Total energy consumption of Highpower Technology during the reporting period
is 184,634,768.28 kWh, of whichdirect energy consumption is 2,410,879.28 kWh and indirect energy consumption is 182,223,889 kWh.
Carbon Emission Management
Energy consumption is calculated as the amount of each type of energy consumed × The energy consumption factors of each typeof energy are converted into standard coal coe?cients, and the energy consumption factors of each type are formulated accordingto the General Principles for Calculation of Comprehensive Energy Consumption (Draft for Comments in July 2018).
Our full life cycle carbon accounting for some nickel-hydrogen products has passed the Carbon Trust carbon reduction certi?cation.
In addition, in order to promote energy use management more efficiently, we have built an online smart energymanagement system to monitor energy use data in a timely manner, analyze energy consumption of key energyconsumption process equipment in the factory-level workshop, identify abnormal energy consumption in a timelymanner, and constantly tap potential space for energy conservation improvement while ensuring energy supplysecurity, so as to continuously promote the intelligent and information-based development of energy management.
Huizhou Highpower Energy Management System
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At the same time, we actively promote and implementour low-carbon concept to employees, partners andsuppliers, work together to carry out carbon reductionand improvement projects, and promote carbonreduction in the whole value chain. Our tireless e?ortsin carbon management have earned recognitionand honor from many customers. In June 2023, wewon the winner in the field of "energy storage andmanagement" in the "Future Positive Challenge"competition held by Logitech International
.
https://www.highpowertech.com/events/corporate-events/blogart227.
Including Shenzhen Highpower, Boke Energy, Shupeng Technology and Huizhou Highpower.
We ?rmly support the national goal of carbon peak andcarbon neutrality, and actively promote comprehensivelow-carbon transformation. During the reportingperiod, Shenzhen Highpower and Shupeng Science andTechnology actively participated in Shenzhen carbontrading. As a key carbon emission control enterprisein Shenzhen, they completed the verification anddeclaration of carbon emission data of enterprises in2022 in 2023 according to the requirements of ShenzhenEcological Environment Bureau, and completed theperformance work in full within the prescribed time limit.During the reporting period, the Company's majormanufacturers
Category 1 and Category 2 greenhousegas emissions totaled 75,397.45 tonnes of carbondioxide equivalent.
With the national carbon neutrality policy requirements, our customers have put forward requirementsfor greenhouse gas management, carbon verification, carbon footprint, etc. of the factory. We have invitedexternal lecturers to carry out ISO 14064, ISO 14067, carbon emission management and other training, coveringa total of 71 employees in quality control, equipment, development, procurement, process, production,human resources, administration, safety o?ce, etc.
Greenhouse gas emission management training
2023 Greenhouse Gas Emission (t CO
e)
Category 2Category 1
856.5474,540.91
Highpower Technology is committed to minimizing the impact of climate change, actively responding to theParisAgreementand working to develop solutions to address climate change. We continue to innovate in practice, lookingfor more ways to reduce greenhouse gases and achieve sustainable operations. Based on the geographical locationof each operation site, we have identi?ed the risks of physical climate risks that may occur in the operation sites suchas typhoon, rainstorm and heavy lightning, formulated Disaster Prevention and Recovery Operation ManagementProcedure and corresponding emergency plan, clari?ed the speci?c contents of accident prevention and treatment,and guided the development of emergency training and drill.
Judge the category and level of disaster and activate the special emergency plan
Inspection of potentially hazardous points, including the reliability and safety of the project's powersupply, water supply and systemsIn response to collapsing objects and rising floodwaters, isolate hazardous areas in a timely manner,display hazard warning signs and ensure the personal safety of disaster relief personnelTimely request for external support in case of ine?ective disaster control
Analyse whether the disaster is under e?ective control and, if the conditions for determination are met,contact the alert and declare the termination of the emergency response
Emergency Plan Process
Activation of the emergency response plan
Conducting emergency response
Emergency recovery and closure
Continuous monitoring of disaster warningsCollect disaster forecasting information
Climate Change Management
Winner Certi?cate in Energy Storage and Management
from Logitech International
Green PlanetAbout Highpower Technology2023Environmental，Social and Governance (ESG) ReportHonest GovernanceImmaculate QualityHarmonious LifeAppendix
NMP: N-Methylpyrrolidone, i.e. N-methylpyrrolidone, electrode auxiliary material for lithium electronic batteries.
Emission Management
Highpower Technology continuously improves and improves the management ofwaste, strives to promote theoptimization and improvement of production processes, reduces the generation of hazardous wastes in process stepsand improves the recycling rate of three wastes. We strive to reduce the environmental impact of our productionoperations and create a more sustainable future.
Air emission treatment facilities
NMP air emission treatment system upgradeDuring the reporting period, Huizhou Highpower renovated the NMP modular recovery system equipmentof the coating machine, upgraded the original recovery system of the equipment to a three-stage towerrecovery system, solved the problem of low air emission recovery rate of old equipment, and increased theair emission recovery rate to more than 95%, with remarkable results achieved.
Installation of NMP condensate recovery unitDuring the reporting period, Guangdong Highpower installed 7 sets of NMP condensation recovery units infront of the air emission treatment facilities to condense and recover the initial NMP air emission emission,making the NMP recovery e?ciency reach about 96%, which is expected to reduce the emission of non-methane total hydrocarbons by 95% and greatly improve the air emission recovery efficiency. For therecovered NMP waste liquid, we send it to the NMP supplier for refining and reuse as raw and auxiliarymaterials to achieve air emission recycling.
Air Emission ManagementHighpower Technology reduces exhaust emissions as much as possible on the basis of ensuring emission compliance.We strictly abide by theAir Pollution Prevention Law of the People's Republic of Chinaand other laws and regulations,actively promote the implementation of air emission and pollution prevention and control, and formulate internalsystems such asPollutant Management ProceduresandAir Emission Management Procedures tomanage airemission treatment and emission in a procedural and scienti?c manner. For air emission monitoring, we regularlyperform third-party monitoring on exhaust gas, and set up an online air emission monitoring system in the factoryto more e?ectively monitor and control air emission emissions. In order to reduce air emission, we vigorously carryout equipment transformation, process introduction and other measures to continuously improve the efficiencyof air emission treatment. At the same time, we apply condensation spraying, rotor adsorption, activated carbonadsorption, dry dust removal and other processes to NMP
exhaust gas, solder air emission, organic air emission,nickel and its compounds shall be disposed to ensure that the production air emission meets the emission standards,During the reporting period, the Company emitted a total of 6.62 tonnes of emissions.
Reconstruction of NMP air emission treatment equipment
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%of production wastewater treatment compliance rate
2023 Wastewater Management Objectives
Wastewater ManagementThe Company attaches great importance to the management of wastewater discharge and prevents any illegaldischarge of wastewater. We strictly abide by theWater Pollution Prevention Law of the People's Republic of China
and other laws and regulations, formulate theIndustrial Sewage Management System, Soil and Groundwater PollutionPrevention and Management Regulationsand other systems, and clarify the wastewater discharge and treatmentprocess.
Wastewater discharge treatment process
Wastewater treatment station
Daily wastewater
After preliminary ?ltration in the internal grease trap and tertiary septic tank, it ?owsinto the municipal networkTreated by the sewage treatment plant after ?owing into the network
Manufacturing wastewaterInternal monitoring after treatment in self-built sewage treatment stationRealize reuse after quali?ed monitoring and used for workshop cleaning
The Company actively takes measures to reduce wastewater discharge to reduce the negative impact on thesurrounding environment of the operation site. We assign special sewage treatment personnel to managewastewater, build our own sewage treatment station and sewage recycling collection tank, and install monitoringequipment in the sewage treatment station. During the reporting period, the Company discharged a total of 1,476cubic metres of industrial wastewater that met the standards for treatment.
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Highpower Technology is committed to reducing waste generation in the process of operation and constantlyexploring ways to recycle waste. We strictly abide by the Law of the People's Republic of China on the Preventionand Control of Environmental Pollution by Solid Wastes and other laws and regulations, and formulate the WasteManagement System within the company to clarify the responsibilities of each department for waste disposal and thewaste disposal process. Our general industrial solid wastes include waste metal, waste paper, plastics, etc. Hazardouswastes include waste electrolyte, waste oil, waste lamp, waste activated carbon, waste rag, waste empty container andwaste cutting liquid, etc.
Highpower Technology Waste Disposal Process
Householdwaste
Disposed of by the sanitation department
Generalindustrialwaste
Recycling and disposal by solid waste recyclers
Hazardous
waste
Disposal by professionally quali?ed hazardous waste disposersConduct regular quali?cation audits of hazardous waste disposers to ensurethat they are quali?ed and capable of disposing of hazardous waste
For hazardous wastes, Huizhou Highpower has established a hazardous waste reduction plan and targeted hazardouswaste emission reduction targets at the operation site level. During the reporting period, the scrapped electrolyte perunit capacity decreased by 21.77% year-on-year.
Waste managementWastewater reuse project of waste water stationThe Company carries out waste water recycling projects, reprocessing and recycling waste water, and improvesthe utilization rate of water resources. Guangdong Highpower has developed a wastewater reuse processfor the wastewater station to reuse the wastewater generated in the production process of the product anduse it in the central air conditioning cooling tower and production process, so as to achieve 100% reuse ofwastewater and greatly improve water saving e?ciency.In addition, Huizhou Highpower carries out recycling of production wastewater generated in the productionprocess. During the reporting period, about 60% of the production wastewater is recycled to the productionworkshop for cleaning after being treated by the wastewater station and reaching the standard.
Huizhou Highpower Production Waste Water Recovery Project
During the reporting period, Highpower Technology has no subsidiaries listed as key pollutant discharging units by theenvironmental protection department, and has not received any complaints about environmental pollution incidents.
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Emergency response drill for chemical leakageOn November 13, 2023, Highpower Technology organized an emergency response drill for environmentalaccidents and chemical leakage. The drill personnel covered chemical use and environmental relatedpersonnel, including safe operation methods for chemical use and emergency response methods forchemical leakage. The exercise allowed employees to learn more specialized knowledge about the use ofchemicals and improved their safety and environmental awareness.
Sewage leak drillIn view of the emergency incident of sewage leakage, we have set up a contact person for the emergencyplan of sewage leakage and reserved emergency supplies for sewage leakage. At the same time, in orderto improve the ability of relevant employees in sewage treatment, we carry out drills for sewage leakage toensure that relevant employees can e?ectively and quickly control and deal with industrial sewage leakageaccidents and reduce the possible impact of sewage leakage accidents on the environment. On September23, 2023, Highpower Technologycarried out an industrial sewage leakage drill, and carried out industrialsewage management knowledge training and emergency treatment explanation for employees.
In order to further prevent and reduce the occurrence of environmental emergencies, Highpower Technology hascontinuously improved the environmental emergency management system and established an emergency commanddepartment, which is responsible for coordinating the environmental emergency disposal work in case of accidentsand minimizing the impact of environmental pollution. At the same time, in view of the possible environmentalemergency events such as pollution leakage, we actively identify risk sources, complete the preparation ofenvironmental emergency plans according to the identified risks, and file them with the ecological environmentbureau under our jurisdiction. During the reporting period, each operation site of Highpower Technology hasimproved its environmental emergency plan and emergency management system respectively.
hazardouschemicals spills
hazardouswaste spills
wastewater leakage
air pollutionemissionleakage
?res and explosions
Contents of Highpower Technology Environmental Emergency Plan
Environmental Emergency Management
Emergency drill for chemical leakage
Wastewater Leakage Drill
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Resource Management
Highpower Technology continues to explore green packaging solutions, gives priority to recyclable, degradableand low consumption packaging materials, and actively carries out the recycling of packaging materials. Duringthe reporting period, we recycled packaging materials such as cartons, plastic boxes and blister trays, and activelypromoted our packaging material recycling concept to our suppliers and customers. Huizhou Highpower has signeda packaging material recycling agreement with clients to recycle product packaging cartons, e?ectively improving theutilization rate of packaging materials.
We put an end to the occurrence of resource waste, take sound internal systems and improved processes asguarantees, promote the economical use of resources, and actively explore more ways to recycle resources, so as tohelp achieve the harmonious coexistence of man and nature.
Water resources protection is an important link of sustainableeconomic and social development. Highpower Technologyattaches great importance to water resources protection andminimizes the negative impact of production and operationon water resources. Our water sources are municipal watersupplies and do not involve significant impacts on waterresources caused by water intake or use. We continue toimprove the internal management system such asEnergyand Resources Management Procedures, clarify the useand management of water resources, encourage waterconservation and promote recycling water. At the sametime, we are committed to continuously optimizing watermanagement by reducing water use, improving water recoveryand recycling, and avoiding the negative impact of excessivewater use and wastewater discharge on natural ecologyand resources. Huizhou Highpower won the water-savingenterprise certification of Guangdong Provincial Bureau ofIndustry and Information Technology. During the reportingperiod, the total water consumption of the Company was809,939 tonnes.
Certi?cate of water-saving enterprise issued byGuangdong Provincial Bureau of Industry and
Information Technology
Intelligent water-saving control system for o?ce areaHuizhou Highpower is equipped with an intelligent water-saving control system in the restrooms of theo?ce area, which discharges water from the water tank through human sensing to achieve the purpose ofwater-saving in the o?ce area.
Intelligent control system for circulating cooling waterHuizhou Highpower has established an intelligentcontrol system for circulating cooling water torealize automatic addition and control of drugsand acids, online monitoring of heat exchangersand online monitoring of corrosion in circulatingwater, realize visual display of various waterquality data and operation trend prediction,supervise the operation process of cooling towerin real time, scienti?cally monitor the circulatingwater quality of cooling water and improvethe circulating use efficiency of cooling water.According to the calculation, the first phase ofthe circulating cooling water intelligent controlproject can quantify the energy saving rate of
12.02%.
Water Management
Packaging Material Management
the amount of industrial sewage reuse reached
10,508tons
During the reporting period
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Highpower Technology adheres to the principle of "ObservingLaw and Discipline, Ensure the Rights of Employees,Build a Harmonious Company", and the talent concept of"contribution-oriented", always believing that talents arethe fundamental driving force for the long-term developmentof enterprises. We fully respect the legitimate rights andinterests of all employees, provide a platform for talent growthand development, encourage employees to develop in adiversi?ed way, create a healthy, safe and harmonious workingenvironment, and achieve win-win results in personal valueand company development.
? Employee Rights and Interests? Employee Training and Development? Occupational Health and Safety04.Harmonious Life
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Employee Rights and InterestsHighpower Technology pays close attention to and is committed to safeguarding the rights and interests ofemployees, attaches importance to the introduction and selection of talents, continuously optimizes the employeewelfare system, and strengthens the internal communication mechanism to promote team cooperation and jointlypromote the development of the company.
Highpower Technology has always supported the ILODeclaration on Fundamental Principles and Rights at WorkandtheUniversal Declaration of Human Rights. We strictly abide by theLabor Law of the People's Republic of China,theLabor Contract Law of the People's Republic of China, the Social Insurance Law of the People's Republic of China
and other applicable laws and regulations at home and abroad where it operates. We have also formulated internalrules and regulations such as theMeasures for the Recruitment Management of Highpower Technology Society, theOperation Standards for the Recruitment Implementation of Highpower Technologyand thePolicies for the Protectionof Labor Rights and Interests, to ensure the openness, impartiality and fairness of employee recruitment through theestablishment of a scientific and reasonable recruitment system. During the reporting period, we formulated andpublicly posted theHighpower Technology Labor Rights and Interests Protection Policy,and promised that the boardof directors and management would supervise and manage the protection of employees' rights and interests anddiversi?cation construction, so as to establish and maintain a diversi?ed and inclusive working environment whileensuring that employees' legitimate rights and interests are not infringed.
Highpower Technology Recruitment ChannelsThe Company adheres to human rights principles and incorporates them into its daily work processes and policiesto ensure that the dignity and rights of employees are fully guaranteed in recruitment and daily work. We strictlyprohibit any form of forced labor and child labor, attach importance to the protection of the rights and interests offemale employees and other groups, encourage equality and diversity, protect employees from nationality, race,ethnicity, religious belief, gender, disability, marital status, sexual orientation, gender identity and other factors, ensureequal pay for equal work, prohibit all forms of discrimination and workplace harassment, and strive to establishand maintain a diverse and inclusive working environment. During the reporting period, we did not have any illegalincidents of employment discrimination, child labor or forced labor.
Social RecruitmentCampus RecruitmentInternal Recommendation
Protection of Female Workers?Strengthening special labor protection for female workers, not arranging for female workers to engagein forbidden labor, and informing female workers in writing of the positions that fall within the scope offorbidden labor for female workers.?Reasonably arranging the rest time of pregnant female workers during working hours, or reducing theirwork quotas accordingly. With the consensus of the female worker, her work position may be adjusted.
Employee Recruitment
Child Labor Protection?We strictly prohibit the employment of child laborers under the age of 16, and we will never support anybusiness partners to employ child laborers.
?We ensure that all employees meet the minimum working age requirements of laws and regulations bystrictly checking their ID cards when recruiting and conducting regular random checks of their data.?If any wrongful employment of child labor is found, the company will immediately stop the work,conduct health checkups, and provide treatment for sick child laborers. The company bears the cost ofescorting the child laborers back to their original place of residence and provides support for the childlaborers to receive education depending on the circumstances. Departments or individuals responsiblefor the injury or death of child laborers will be prosecuted or held criminally liable.
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During the reporting period, the total number of regular employees of the Company reached 6,488, including 2,194female employees, accounting for 34%, and 963 ethnic minority employees, accounting for 15%.Number of employees by genderNumber of employees by function
■ Male??■ Female■ Manufacturing workers ■ Engineering Technology
■ Management ■ Service
19%1,238 People7%443 People20%1,328 People
54%3,479 People4,294 People66%34%2,194 People
Number of employees by rankNumber of employees by age
■Management ??■ General employee ■30 to 50 years old ??■30 years old and below
■50 years old and above
7%
93%443 People
6,045 People
39%
60%
1%
2,502 People
64 People
3,922 People
During the reporting period, the Company was awarded a number of honorary titles:
?
UFIDA 2023 China Human Resources VenusPrize-2023 Digital Intelligence RecruitmentInnovation Practice Award
?
Liepin Zhongnan District 2023 OutstandingTalent Partner Award
?
Zhilian Recruits China's Employer of the Yearin 2023
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Highpower Technology actively creates a warm, harmonious, equal and caring working atmosphere, carries out richand colorful employee activities by providing a perfect employee salary and welfare system, enhances the cohesionof employees and enhances the sense of belonging of employees. Highpower Technology has established internalmanagement systems such as theManagement Measures for Employee Remuneration of Highpower Group, implementedcomprehensive salary management, guided by the results of job responsibilities, adhered to the combination of marketorientation and industry competitiveness, ensured that employees are provided with competitive salary and welfaretreatment in the market, emphasized comprehensive returns, and promised to achieve the concentric sharing andachievement sharing of the company's operating performance and employee salary.
Highpower Technology's Comprehensive Salary Management SystemMaterial Incentive SystemLearning and GrowthHonor Incentive SystemCareer Development
Opportunities
Highpower Technology Employee Incentive Mechanism
Employee Compensation and Bene?ts
In order to ensure that employees can maintain high work enthusiasm and motivation at different stages, thecompany has established short-term incentive, medium-term incentive and long-term incentive mechanisms to fullystimulate employees' work motivation and creativity.
?Includes technical system title allowance, timeliness incentive, proposal improvement award, etc;?The awards are granted according to the actual situation and contribution of the employee in the project.
?Includes excellent project awards, R&D project awards, government project awards, cost reduction ande?ciency improvement awards, and performance bonuses;?Among them, the performance bonus allocation is a kind of pro?t-sharing plan formulated by the Company forthose who have reached the performance standard.
?Includes stock incentives;?The Company grants stock incentives to R&D, technical, business and management personnel who can supportthe Company's future development strategy, combining the interests of the Company and the core team, sothat all parties can jointly focus on the Company's long-term development and ensure the realization of theCompany's development strategy and business objectives.
Short-term Incentive
Medium-term Incentive
Long-term Incentive
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The diversity of employee benefits reflects the company's concern and attention to employees. On the basis of statutorybenefits, Highpower Technology provides employees with diversified additional benefits, regularly organizes a variety ofemployee activities, enhances employees' sense of belonging, and improves employees' work enthusiasm and engagement.
?The Company has formulated theHighpower Technology Employee HomePurchase Loan Management Systemto provide home purchase loans toemployees who ful?ll the conditions.?Distribute a gift to our employees during traditional festivals and on theirbirthdays.?Award employees with Starlight Award and Quarterly Special Award.?Organize clubs and provide ?nancial support.?Provide sta? with starter packs, anniversary blessings and departure souvenirs.AdditionalBene?ts
Club activitiesThe Company pays attention to the physical and mental health of employees, advocates the concept of"e?cient work and happy life", and has established interest associations in all parks of the Company. Theassociations cover eight categories, including table tennis, badminton, basketball, photography, literatureand art, and English. All associations regularly hold various cultural and sports activities to help employeesachieve a balance between work and life.?Purchase social insurance and provident fund for all employees.?All employees are entitled to annual leave, maternity leave, paternity leave,marriage leave, sick leave, bereavement leave and other types of paid leave inaccordance with the law.Statutory Bene?ts
?Female employees shall enjoy maternity leave of not less than 178 daysfor childbirth, and the maternity leave shall be adjusted and increased inaccordance with the statutory requirements according to the productionsituation of the female worker and the number of babies she has given birth to.?During the period when a female employee is breastfeeding a child under oneyear of age (hereinafter referred to as the breastfeeding period), the companyshall not extend her working hours or arrange for her to work at night. Fromthe day following the end of the maternity leave to the child's ?rst birthday, thecompany provides one hour of paid breastfeeding leave during working hoursevery day, and for every additional baby breastfed, the daily breastfeeding timeis increased by one hour.?Mother and baby rooms are set up in each of the company's factories.
Female EmployeeBene?ts
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Selection of the most beautiful builders in Tonghu ParkBasketball fellowship
"10,000 Steps Challenge" activity
During the transfer of production capacity in the Company's Tonghu Industrial Park and the constructionof additional production capacity in the first phase of the Industrial Park, all colleagues worked bravely andtogether, adhered to customer-centric and contributor oriented, and contributed to the steady development ofthe company. In order to record the moving stories and striving moments in the process of production capacityconstruction in Tonghu Park, disseminate the outstanding deeds of contributors, and commend outstandingindividuals and teams, Highpower Technology specially planned the collection activity of the deeds of the mostbeautiful contributors in Tonghu Park and the evaluation activity of "advanced individuals and teams", andawarded honorary certi?cates and products to the most beautiful contributors. At the same time, those strivingstories and excellent benchmarks were recorded in the history books, to motivate all employees to continue towork together and contribute to the development of the Company.
We initiated the basketball fraternity game of "Welcome the basketball, vitality Highpower" among oursubsidiaries, aiming to stimulate the vitality of the organization and show the spirit of employees. Thisactivity provided a stage for employees to show team spirit and talent, strengthened communication andcooperation between each other, enhanced friendship and team cohesion.
In order to stimulate the vitality of the team, thecompany planed and organized "10,000 StepsChallenge" activity. The activity was carried out inteams, each group walking more than 10,000 steps aday for two consecutive weeks. Teams that successfullycompleted the challenge will be rewarded, whileteams in the top three overall steps would receivedadditional rewards. This activity not only stimulatedthe enthusiasm of team members, but also enhancedthe collaboration and tacit understanding betweenteams. Employees worked together and supportedeach other to create a healthier, more positive teamatmosphere ?lled with positive energy.
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Highpower Technology is committed to building a corporate culture of inclusiveness and belonging, and has set updiversified employee communication and interaction channels to ensure that employees' opinions and feedbackcan be transmitted in a timely manner. The company actively builds internal communication channels, listens toemployees' voices, and regularly holds group building activities such as tea parties, symposiums and democraticlife meetings, so as to e?ectively achieve information transmission and experience sharing between superiors andsubordinates, cross-departments and cross-positions. We implement new employee onboarding experience surveyand canteen employee satisfaction survey on a semi-annual basis to enhance our understanding of employees. TheCompany pays full attention to the opinions of employees, and continuously optimizes the workplace environmentand improves employee satisfaction according to the feedback and suggestions received.
Festival eventsWhen traditional festivals such as the Lantern Festival, the Dragon Boat Festival and the Mid-AutumnFestival are coming, all subsidiaries will carefully organize interesting activities to activate the organizationalatmosphere and increase the fun of the festival. These activities bring joy and pleasure to employees, andthrough participating in games, employees have the opportunity to receive rich prizes, which helps toenhance the sense of belonging and cohesion of employees.During the reporting period, our subsidiaries carried out a series of activities to welcome the Mid-AutumnFestival and celebrate the reunion, such as guessing lantern riddles, casting pots in the Han Palace andmaking handmade moon cakes. We also prepared a variety of holiday gifts for employees to enjoy thefestival.
Complaint feedback
?Covering all employees
?Communicate when receiving feedback oncomplaints
Employee suggestion box?Covering all employees?Open the box once every half a month andcommunicate when receiving complaints andfeedbacksDemocratic life meeting?Covering all employees?Suggestions are not limited in scope andfrequency, and are conducted randomly
Employee representative meeting?Attended by labor union committee membersand employee representatives?Conducted at quarterly frequency
the 3 main subsidiaries of Highpower Technology covered of the percentage of their employees
%
Communication Channels for Highpower Technology Employees
Employee Communication
During the reporting period
Harmonious LifeAbout Highpower TechnologyAppendix2023Environmental，Social and Governance (ESG) ReportHonest GovernanceImmaculate QualityGreen Planet
Highpower Training System Framework
Managementa ability
training
Leadership development
Senior leadership
Middle management
ability
Basic team leader
training
Career development
Cultivation of employees'general quality and abilityNew employee training
Professional abilitytrainingInduction training
Transfer defense
management
Technical sequence
Basic training ingeneric categoriesMentorshipimplementation
Induction trainingMarketing sequence
Other functional
sequences
Platform resource
management
Training operation
Trainingmanagement system
Lecturer resourcemanagementOnline learning
platform
Management ofcourse resources
Employee Training and Development
Highpower Technology continuously optimizes the talent training system, pays attention to the potential and future development of employees, provides employees with a broad learning and development platform, encourages employees tocontinuously improve their professional quality and skill level, and realizes the common growth of employees and the company.Highpower Technology attaches great importance to talent training, always adheres to the mission and orientation of "disseminator of corporate culture, cradle of cadre training, and inheritor of core technology", provides systematic trainingcourses and training means from low to high in the process of career development for each technical role and management role, and establishes and continuously improves Highpower Technology training system to support employeedevelopment.
Talent Training
Highpower Technology Training System
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New Employee TrainingThe Company provides systematic onboarding training for all newly recruited social employees to ensure that newemployees quickly integrate into the Company's culture and work atmosphere, master the required knowledgeand skills, and improve work e?ciency and performance, thus creating value for the Company. During the reportingperiod, the overall satisfaction of new employees with onboarding training was as high as 4.92 points
。
At the same time, we provide a comprehensive training system for all new fresh graduates with bachelor's/master's/bachelor's degree, following the rule of 721, so that fresh graduates can grow rapidly in their actual work and achieverapid promotion in the process of value creation. At present, we have a number of excellent fresh graduates s whohave been promoted to the manager level in just three years.
The full score of onboarding training satisfaction survey is 5 points.
Highpower Technology New Employee Systematic Onboarding Training
Highpower Technology New Employee Onboarding Guidance and LearningHighpower Technology Fresh Graduates Training System
Company-level trainingSector-level trainingOnlineGeneral Skills, Specialized FundamentalsO?ine (2-day intensive training)Introduction of company and development strategy,HR policy, information security, team activities, etc.
DepartmentalResponsibilities and ob jectivesProduct and Service KnowledgeSystems and ToolsBusiness ProcessesCross-Departmental LearningMentoring (job skills)
(Pre-employment) Cloud Academy should know and understandCareer readiness
Ideological readiness(Within one week of employment) Face-to-face intensive training?Company overview
?Highpower Overview Cognition
Professional readiness(Within 3 months of employment) Cloud Academy Online Course?Basic know ledge learning & examination
On-the-job counseling(Within 6 months of employment) Online + O?ine Courses?Cultivate critical and structured professional thinking?Improvement of professionalism, project management, project management other professionaliza tion skills
Practical learning(Within 3 months of employment) Production practice?Workshop practice
?Cross-unit internship
?Second and third level training?Mentor coaching list
?Review rummary
?History?Core Values
?Outstanding employees &leaders talk, etc.
?
Team activities
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Professional Ability Training
Cultivation of Employees' General Quality and Ability
In order to strengthen the professional skills and knowledge level of employees, the company takes departmenttraining as the core training method. The training content includes cutting-edge courses such asBasic Knowledge ofLithium Batteries, Cell Failure Analysis and PACK Lithium Ion Battery Overcharge Safety Standards and Solutions, so asto deepen employees' understanding of product quality, battery performance, safety standards and other issues, andpromote the substantive improvement of employees' professional ability.
Highpower Technology pays attention to improving the general quality competency of employees, advocates diversitytraining, and provides convenient and efficient learning resources for employees to help them make continuousprogress.Highpower Technology Fresh Graduates Training Activities
Peacock Plan
Project management training
In order to continuously promote the transformation and integration of new employees, we carry out a specialtraining of "Peacock Plan" every year. When graduates enter the company, we invite internal and externallecturers to cultivate their mental outlook through outreach training, project performance and other outreachexperience activities. Through systematic courses, we help graduates understand the company's culture andpolicies. During the training period, a total of 36 senior managers or experts participated in the teaching inperson, and the lecturer satisfaction was 4.98, course satisfaction 4.99. After returning to the department, weprovide each graduate with excellent internal mentors and carry out one-on-one tutoring to help studentssuccessfully complete the transformation from campus people to professionals.
In order to continuously improve the project management ability and ensure that each system or businessdepartment has the ability to undertake strategic key tasks and projects, we carry out project managementtraining once a year to ensure the continuous improvement of the project management ability of relevantpersonnel. During the reporting period, the Company conducted a 7-month project management training,which was attended by 58 project managers from all business lines. The training adopted the method ofcombining training with warfare, inviting external lecturers to teach in 7 stages, with a total of 36 class hoursand a comprehensive satisfaction of 4.91.
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During the reporting period, the total number of trained employees of Highpower Technology reached 6,488, with anaverage length of training time of 21 hours.Management Ability Training
Platform Resource Management
Highpower Technology's management ability training is comprehensive and in-depth, covering three levels ofpositions: senior leaders, middle management and basic team leaders, and provides targeted leadership trainingresources for employees at all levels. Our management ability training covers theTeam Leader Role Cognition,theLeadership Thematic Discussion, the Cadre Management Ability Improvement, etc. We also provide a series oftrainings for basic team leaders through organization and management lecture halls and performance communicationtraining to help employees at all levels continuously improve their management ability.
Highpower Technology attaches great importance to platform resource management, aiming to maximize the use andvalue of resources through scienti?c and e?cient management means, and provide a solid resource guarantee foremployee growth and the sustainable development of the company.Online training platform: Highpower online learning platform
The Company builds and continuously improvesthe digital enterprise learning software platform andtool "Highpower Online Learning Platform" to coverthe whole scene of enterprise learning. Throughthe combination of key teaching tools such as livebroadcasting and course preparation, HighpowerOnline Learning Platform creates a comprehensiveintelligent learning experience for employees, providesrich resource support for employees' personal growthand development, helps employees continuouslyimprove their knowledge and skills, and enables activelearning to occur anytime and anywhere. By the endof the reporting period, Highpower Online LearningPlatform had 1,865 online course knowledge points,including but not limited to 1,792 course packageknowledge points, 34 video and audio knowledgepoints and 39 document knowledge points.
Number of employees trained by gender (People,%)
Male
21.46
Female
20.31
Average hours of employee training by gender (Hour)
Average hours of employee training by age (Hour)
30 years old
and below
23.87
30 to 50years old
50 years oldand above
19.2217.83
Management
37.68
General employee
19.78
Average hours of employee training by rank (Hour)Manufacturingworkers
15.36
EngineeringTechnology
32.14
Management
37.68
Service
18.95
Average hours of employee training by function (Hour)
Male4,294 People/66%Female2,194 People/34%
Number of employees trained by rank (People,%)
6,045 People/93%443 People/7%General employeeManagement
Number of employees trained by age (People,%)
50 years oldand above
64 People/1%30 to 50years old
3,922 People/60%30 years oldand below
2,502 People/39%
Number of employees trained by function (People,%)
Management
3,479 People/54%
1,238 People/19%EngineeringTechnologyManufacturingworkersService
1,328 People/20%
443 People/7%
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Talent Promotion MechanismThe Company starts the promotion of talents in the second half of each year, and promotes the correspondingemployees according to the promotion conditions. In order to obtain promotion qualification, employees needto participate in the qualification level certification corresponding to their job categories in the form of writtenexamination and defense.
Performance Whole-process Management
In order to stimulate the potential of employees and promote the common growth of individuals and the company,Highpower Technology continues to improve the talent development system and establish a fair, transparentand inspiring workplace environment. We have established and implemented theHighpower Technology TalentDevelopment Management Mechanismto manage the whole process of employee performance evaluation andpromotion to ensure fairness, transparency and equality in the process.
1. At the beginning of each year, after the decomposition
of theorganization's performance objectives, individualemployeeslayered hierarchical effectively undertake theorganization's keytasks, according to the assessmenttemplate, employees andimmediate supervisors two-waycommunication, set personalperformance objectives;
2. Supervisors and subordinates performance objectives
communication principles: ①Target alignment: Communicationofthe annual work direction, business priorities; ②Ideasalignment:Target ideas, methods and leadership behavior toreach aconsensus; ③Concept alignment: Inspire subordinatesto take theinitiative to set challenging goals.
1. A?rmation of high performance employees,
coachingemployees who have not reached theirperformance goals,improve and enhance the work methodsand abilities ofemployees, performance C employees todevelop PIP(Performance Improvement Plan);
2. Employees and managers both reach a consistent view
ofthe evaluation results.
1. Regularly carry out management lecture halls to
empowermanagers for performance counseling:
2. For some key employees, the organization carries
outmonthly work feedback, including positive andnegative eventrecords or work direction guidelines;
3. Organization of the second half of the performance
targetadjustment review: due to changes in the directionof businesspriorities, it is necessary to reorganize the keytasks of the teamin the second half of the year, clarify theresponsible person,and adjust the performance target in atimely manner;
1. Evaluation cycle: Semi-annual and annual performance
evaluation;
2. Evaluation Orientation: Comprehensive consideration
of individual PBC completion, fulfillment of job duties andcontribution beyond jobduties for relative assessment;
3. Evaluation process: Employee self-assessment-Matrix
supervisor evaluation- Immediate supervisor evaluation-Collective evaluation-Group review and signing approvalPerformance communication-Performance announcement
4. Evaluation Grade: S/A/B+/B/C/D
Performance Target Setting
Performance Communication
Performance Coaching
Performance Evaluation
Talent Development
During the reporting period
the ratio of annual promotions of sta? to the total number of sta? is approximately
%
Harmonious LifeAbout Highpower TechnologyAppendix2023Environmental，Social and Governance (ESG) ReportHonest GovernanceImmaculate QualityGreen Planet
At the same time, in order to ensure the e?ective implementation of relevant work, we hereby formulate theSafety ProductionReward and Punishment System, which closely links the safety key performance indicators with the performance of departmentheads, and encourages and restricts personnel at all levels to e?ectively ful?ll their safety production responsibilities. Thecompany will reward those who conscientiously implement the safety management rules and regulations and earnestlyful?ll the safety production responsibility. For serious violations in the process of safety production and those who are mainlyresponsible for safety accidents, we will give corresponding penalties such as circulating a notice of criticism.During the reporting period, 2 subsidiaries of Highpower Technology have passed the ISO 45001 occupational health andsafety system certi?cation, further proving their professionalism and rigor in safety management.
During the reporting period, we formulated and continuously tracked the achievement of occupational health and safetyobjectives according to the changes in risks and capabilities, adopted systematic methods to continuously improve relevantperformance, and achieved a good performance of 100% of the annual target achievement rate.
ISO 45001 Occupational Health and Safety System Certi?cation for 2 Subsidiaries of Highpower Technology
Occupational health and safety objectives and indicatorsAchievement of objectives
0 fatality rate of industrial accidentsAchieved0 ordinary accidents speci?ed in theLaw of the People'sRepublic of China on Work Safety
Achieved0 accidents caused by ?re, explosion and natural disastersAchieved
0 large chemical leakage incidentsAchieved
Occupational Health and Safety Target Indicators of Highpower Technology in 2023
Occupational Health and SafetyHighpower Technology always puts occupational health and safety in the ?rst place, pays attention to and guarantees theoccupational health of employees, and attaches importance to safe production. The Company has taken a series of powerfulmeasures to continuously strengthen the management of occupational health and safety of employees to ensure thatemployees work and develop in a safe and healthy environment.Highpower Technology attaches great importance to the safe and orderly development of production work, strictly abides bytheLaw of the People's Republic of China on Work Safety and other applicable laws and regulations in all places of operation.We have formulated several relevant systems, including theEmployee Occupational Health and Safety Manual, theWork SafetyResponsibility System, theSafety Construction Management Systemand theWarehouse Safety Management System. They coverhazard identification and management, industrial accidents and emergency management, fire management Regulations onmanagement of hazardous chemicals, radiation management and hazardous operations, etc., to build a solid line of occupationalhealth and safety defense from multiple angles.At the same time, we have established a sound occupational health and safety governance system, set up a general safety directorto lead the safety management department, and the safety executor is responsible for guiding the subsidiaries to carry outoccupational health and safety management.
Highpower Technology Occupational Health and Safety Management Structure
?Organization and overall management of safety work in subsidiaries
Safety Management Department
?Set up a safety and health management committee in each subsidiary
?The general manager of each subsidiary is the chairman of the safety and health management committee and haspassed the quali?cation certi?cate of safety training for the main person in charge of production and operation units?Head of each department is a member of the safety and health management committee and is fully responsible forthe safety management of his department
Safety and Health Management Committee
?The safety o?ce is subordinate to the leadership of the safety and health management committee, and promotes thesafety work under the coordination of the chairman of each subsidiary's safety and health management committee
?The safety o?ce of each subsidiary company is sta?ed by full-time safety management personnel with certi?cates ofsafety director, enterprise safety management personnel and registered safety engineers?Each workshop is equipped with part-time safety o?cers to assist the safety o?ce in carrying out daily safety management
Safety O?ce
Occupational Health and Safety Management
Harmonious LifeAbout Highpower TechnologyAppendix2023Environmental，Social and Governance (ESG) ReportHonest GovernanceImmaculate QualityGreen Planet
The safety management of hazardous chemicals is regarded as the top priority of enterprise safety management.For hazardous chemicals such as electrolyte (flammable and explosive) and alcohol, Highpower Technology hasestablished a rigorous chemical plan management process. Guided by theHazardous Chemicals ManagementSystem, we only select qualified suppliers for cooperation in the procurement process. After entering the factory,they are stored in a special storage place (such as explosion-proof cabinet) of the hazardous chemicals warehouse forsafety isolation, and special managers are arranged for management. Employees are required to follow the operationrequirements throughout the process. We will continue to strengthen the management of hazardous chemicals andcreate a safe and stable environment for the steady development of enterprises.In order to ensure that the company can quickly and e?ectively respond to production safety accidents, HighpowerTechnology attaches great importance to safety emergency management. We have cooperated with quali?ed thirdparty companies to jointly formulate emergency plans for production safety accidents, including theComprehensiveEmergency Plan, theSpecial Emergency Planand the On-site Emergency Plan. After passing the review of experts,we will register with the local emergency management bureau in accordance with relevant regulations. In order toensure the e?ectiveness of the plan, Highpower Technology will carry out drills every year according to its own actualsituation, so as to improve the ability of employees to cope with emergencies and their ability to self-help and mutualrescue. During the reporting period, we conducted a total of 29 safety emergency drills.
Hazardous Chemicals Management
Security Emergency ManagementSecurity Risk Management and InspectionAdvance prevention and continuous monitoring are important lines of defense for occupational health and safetymanagement. In accordance with the requirements of ISO 45001 occupational health and safety management system,the company continuously carries out and optimizes safety risk assessment and management, updates, re-identi?esand evaluates occupational health hazard sources faced by all departments, timely discovers omissions and e?ectivelycomplements shortcomings.At the same time, the company continues to deepen the supervision and inspection of safety work, effectively identifysafety hazards in the daily production process, and improve the level of production safety. We carry out joint safetyinspection on a monthly basis. An inspection team is formed with the participation of the chairman or vice-chairman of thesafety and health management committee and the heads of all departments to conduct comprehensive and detailed safetyinspection on the park separately, and summarize and rectify the safety hazards found. After the recti?cation, the reviewpersonnel will check the recti?cation to ensure that the problems are properly solved and form a closed-loop management.
The Company comprehensively promotes safety production, strengthens safety risk management and inspection,hazardous chemicals management, safety emergency management and safety culture construction, and ensures thesafety and steady development of employees and the company. During the reporting period, Highpower Technologyinvested a total of RMB 7.79 million in safety production, with 0 death and 0 major industrial injury incidents.
Comprehensive emergency drill for ?re accidentsDuring the reporting period, in order to improve the emergency response level of the Company's fireaccidents, we simulated the real accident scenarios for 2,435 employees of the plant, interested parties in theplant on the day of the drill, contractors, etc., carried out comprehensive emergency drills for ?re accidents,and inspected the effectiveness of the emergency plan for fire accidents and the response mechanismof emergency agencies. During the drill, the emergency response process was smooth, all participantsoperated according to the predetermined roles and responsibilities, and all emergency teams and memberssuccessfully completed the emergency rescue tasks, achieving the expected results.
Safety Production
number of safety inspections organized (times)
number of safety emergencydrills (times)
completion rate of safetyemergency drill (%)
%
proportion of employees participatingin safety emergency drills (%)
%
number of recti?cation of potential safety hazards (times)2,387
During the reporting period
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Emergency response drill for chemical leakageLevel III safety training for new employees
Hazardous chemicals training
During the reporting period, in order to improve the emergency disposal level of chemical leakage andenhance the risk prevention awareness and self-help and mutual rescue capabilities of employees, theCompany organized and carried out emergency disposal drills of chemical leakage, focusing on thecoordination ability of commanders and the actual combat ability of emergency personnel. The drill coveredpersonnel involved in temporary storage management of chemicals and use of chemicals in the workshop,and there were no abnormal accidents during the drill. The emergency response team responded quicklyand dealt with the chemical leakage site in a timely and e?ective manner.
During the reporting period, we carried out three-level safety training and education for new employees,covering the company's safety production managementpolicies, basic knowledge of chemical safety andrelevant laws and regulations on safety production. Afterpassing the assessment, new employees could enterthe workshop to learn skills and knowledge, such asworkshop safety regulations and post operation.
During the reporting period, we carried out training and education on safety knowledge of hazardouschemicals, focusing on basic knowledge of safety of hazardous chemicals, safety knowledge of use andmanagement, emergency treatment process, relevant accident warning and other safety precautions.Through this training, employees had a deeper understanding of the safety management of hazardouschemicals and improved their ability to cope with hazardous chemical accidents.Safety Culture BuildingThe cultivation of safety awareness and culture canreduce the occurrence of safety hazards and riskevents from the source. In order to improve the safetyawareness and skills of employees, we have formulatedand strictly implemented the annual occupationalhealth and safety training plan. On a monthly basis, wehave carried out three-level safety education for newemployees, special training on safety of hazardouschemicals, ?re safety, special work safety, lithium batterysafety, etc., corrected and prevented potential safetyhazards, and provided strong support for creating a safe,healthy and stable production environment. In addition,we require employees to work with certificates, andpromise to reimburse related expenses to reduce the?nancial burden of employees.
During the reporting periodTotal hours of safety training sta?participation (hours)
49,172Percentage of employees participating
in safety training (%)
Total number of supplier safety training
conducted (times)
Total hours of supplier safety training
conducted (hours)
1,741
The coverage rate of safety training for new employees is
%Emergency Response Drill for Chemical Leakage
Harmonious LifeAbout Highpower TechnologyAppendix2023Environmental，Social and Governance (ESG) ReportHonest GovernanceImmaculate QualityGreen Planet
Highpower Technology Occupational Health Training
Highpower Technology Occupational Disease Physical Examination
Safety training for construction personnelWe have carried out training for constructionpersonnel, so that internal docking constructionpersonnel can quickly grasp relevant safety man-agement systems, potential safety risks, risk controlmeasures and emergency response knowledgeto ensure the safety of the construction process.During the reporting period, we conducted a totalof 1,521 contractor safety training.At the same time, we signed theSafety Manage-ment Agreement for Suppliers, Contractors andCollaborators, Contractors and Collaboratorswithsuppliers, and the construction work can be carriedout only after the approval and issuance of theCon-struction Permitand theOpen Fire Work Permit.
Highpower Technology puts the physical and mental health of employees ?rst, and is committed to improving theworking environment and strengthening the occupational health management of employees. We have establishedtheOccupational Health Surveillance and Occupational Disease Prevention Management Control Procedureandthe Occupational Health and Safety Management Policy, and other regulations to prevent and control occupationalhazards and protect employees' occupational health rights and interests.Highpower Technology attaches great importance to the prevention of occupational diseases. Since the beginning of theplant construction, we have ensured that the occupational disease prevention facilities are designed, constructed andput into use synchronously with the main works to ensure the health of employees. We have successively completed thepre-evaluation of occupational hazards, design of occupational disease prevention facilities, evaluation of occupationalhazard control effect and corresponding review, and carried out acceptance of facilities and equipment related tooccupational disease prevention before production to ensure the e?ectiveness of facilities and equipment.In order to ensure the occupational health of employees, we carry out workplace occupational disease hazard detectionevery year, and regularly carry out occupational disease risk investigation and control work to ensure that the on-siteworking environment meets the health requirements. During the reporting period, we did not have excessive dust problemsand provided a safe working environment for all employees.
In addition, we provide occupational health management training for all personnel exposed to occupational hazardfactors, provide pre-employment, on-job and off-job occupational disease physical examination as planned, anddistribute labor protection articles free of charge. During the reporting period, the Company did not found anyoccupational disease patients.Physical examination rate of occupational diseases (%)100Number of occupational disease cases (times)0Occupational Health
Immaculate QualityAbout Highpower TechnologyAppendix2023Environmental，Social and Governance (ESG) ReportHonest GovernanceGreen PlanetHarmonious Life
Appendix I Key Performance Indicators (KPIs)Governance Performance
TopicindexUnit2023Anti-Corruption
Number of litigation casesCase0Anti-Corruption auditTime2Information SafetyNumber of information security incidentsNos0
Due to the company's business adjustment and capacity transfer, the environmental performance of this report mainly covers fivemajor production bases, namely Shenzhen Highpower, Icon Energy, Springpower Technology, Huizhou Highpower and GuangdongHighpower. In the future, we will include all subsidiary environmental data after the stable production and operation of each subsidiary.
Environmental performance
TopicIndexCompany2023
Use of Energy
Purchased powerKWh180,641,929.00Photovoltaic PowerKWh1,581,960.00Total indirect energy consumptionKWh182,223,889.00Natural gasm?26,917.60Lique?ed petroleum gasKg14.5GasolineTon136.73Diesel oilTon40.69Total direct energy consumptionKWh2,410,879.28Total comprehensive energy consumptionKWh184,634,768.28Use of Water
Total water consumptionTon809,939Water reuseTon10,508
TopicIndexCompany2023
Exhaust EmissionsTotal exhaust emissionsTon6.62WastewaterDischarge
Total wastewater dischargem?1,476
Waste
Production of hazardous wasteTon158.36Recycling amount of hazardous wasteTon22.21Land?ll volume of hazardous wasteTon1.21Incineration volume of hazardous wasteTon127.90Other disposal volumes of hazardous wasteTon7.04Production of general industrial solid wasteTon774.10Recycling amount of general industrial solid wasteTon666.64Greenhouse GasEmissions
Category I
Tons of carbon dioxideequivalent
856.54
Category II
Tons of carbon dioxideequivalent
74,540.91Total greenhouse gas emissions in category I andcategory II
Tons of carbon dioxideequivalent
75,397.45EnvironmentalGovernance andProtection
Amount of investment in environmental governanceRMB61,158,500Environmental governance investment durationHour19,267
Immaculate QualityAbout Highpower TechnologyAppendix2023Environmental，Social and Governance (ESG) ReportHonest GovernanceGreen PlanetHarmonious Life
TopicIndexUnit2023
Employee Employment
Total EmployeesPeople6,488Number of employees by functionManufacturing WorkersPeople3,479Engineering TechnologyPeople1,328ManagementPeople443ServicePeople1,238
Number of employees by rankManagementPeople443General employeePeople6,045Number of employees by gender
MalePeople4,294FemalePeople2,194Proportion of women on the board%11.11
Number of employees by age30 years old and belowPeople2,50230 to 50 years oldPeople3,92250 years old and abovePeople64
Social Performance
TopicIndexUnit2023
Employee Training
Total number of employees trainedPeople6,488Number of employees trained by functionManufacturing WorkersPeople3,479Engineering TechnologyPeople1,328ManagementPeople443ServicePeople1,238Number of employees trained by rankManagementPeople443General employeePeople6,045Number of employees trained by genderMalePeople4,294FemalePeople2,194Number of employees trained by age30 years old and belowPeople2,50230 to 50 years oldPeople3,92250 years old and abovePeople64
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TopicIndexUnit2023
Average Hours ofEmployee Training
Average hours of employee trainingHour21Average hours of employee training by function
Manufacturing WorkersHour15.36Engineering TechnologyHour32.14ManagementHour37.68ServiceHour18.95Average hours of employee training by rankManagementHour37.68General EmployeeHour19.78Average hours of employee training by genderMaleHour21.46
FemaleHour20.31Average hours of employee training by age30 years old and belowHour23.8730 to 50 years oldHour19.2250 years old and aboveHour17.83
TopicIndexUnit2023
Occupational Health andSafety
Number of work-related deathsPeople0Signi?cant work-related injury eventsCase0
Total hours of employees participating in safety trainingHour49,172
Percentage of employees participating in safety training%100Total number of external factory partners safety trainingconducted
Time776Total hours of external factory partners training conductedHour1,741
Number of safety and emergency drillsTime29Completion rate of safety and emergency drills%100Percentage of employees involved in safety and emergencydrills
%100Safety production inputRMB7,790,000Number of security inspections organizedTime507Number of corrections of safety hazardsTime2,387Physical examination rate of occupational diseases%100
Number of occupational disease casesCase0
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TopicIndexUnit2023Social Welfare
Total Public Charity InvestmentsRMB1,886,600
Total investment in targeted poverty alleviationRMB176,000
Total number of targeted poverty alleviation investmentsPerson time3
Supplier Pro?le
Total VendorsUnit350
Domestic suppliersUnit334
Overseas suppliersUnit16
Proportion of domestic suppliers%95Proportion of overseas suppliers%5Supplier Evaluation
Number of suppliers performing social responsibility(sustainability risk) assessments
Unit40Number of suppliers performing con?ict mineralsassessments
Unit37Supplier ESG Training
Number of ESG training sessions for suppliersTime2Total hours of ESG training for suppliersHour36Number of suppliers participating in the ESG trainingUnit29Implementation of ESGby Suppliers
Number of key suppliers of main materials certified by ISO14067 in 2022 and 2023
Unit10Number of key suppliers of main materials certified by ISO14064 in 2022 and 2023
Unit16
TopicIndexUnit2023
R&D Innovation
Report the total number of patents applied in the current year/490+Report the total number of patents approved in the year/240+Total number of existing patents granted/632Number of R&D projects in the reporting year/400+
Total number of industry standard-setters involved in thereporting year
/6
Total number of participants in intellectual property trainingcourses
People2000+Infringement of intellectual property rightsCase0
Immaculate QualityAbout Highpower TechnologyAppendix2023Environmental，Social and Governance (ESG) ReportHonest GovernanceGreen PlanetHarmonious Life
Appendix II Benchmarking Index TableUN SDGs IndexSDGsChapters
No Poverty
Honest Governance: Community ContributionHarmonious Life: Employee Rights and Bene?tsGood Health And Well-beingHarmonious Life: Occupational Health and Safety
Quality Education
Honest Governance: Community ContributionHarmonious Life: Employee Training and DevelopmentGender EqualityHarmonious Life: Employee Rights and Bene?ts
Clean Water And SanitationGreen Planet: Pollutant Management
A?ordable And Clean EnergyGreen Planet: Low Carbon Operation
SDGsChapters
Decent Work And EconomicGrowth
Honest Governance: Corporate GovernanceHarmonious Life: Employee Rights and Bene?tsIndustry, Innovation AndInfrastructure
Immaculate Quality: Product Quality and Customer Service,Innovative R&D
Reduce Inequalities
Honest Governance: Community ContributionHarmonious Life: Employee Rights and Bene?tsResponsible consumptionAnd Production
Immaculate Quality: Product Quality and Customer ServiceGreen Planet: Environmental Management, Low-Carbon Operation,Pollutant Management, Resource ManagementClimate ActionGreen Planet: Low Carbon Operation
Peace, Justice And StrongInstitutions
Honest Governance: Corporate Governance, Business Ethics andAnti-Corruption, Information Security and Privacy Protection
Partnerships For The GoalsImmaculate Quality: Innovative R&D, Responsible Procurement
Immaculate QualityAbout Highpower TechnologyAppendix2023Environmental，Social and Governance (ESG) ReportHonest GovernanceGreen PlanetHarmonious Life
GRI Standards IndexDisclosureItem
Disclosure TitleChaptersUniversal StandardsGRI 2: General Disclosures 2021The organization and its reporting practices2-1Organizational detailsCompany pro?le2-2
Entities included in the organization's
sustainability reporting
About this report2-3
Reporting period, frequency and contactpoint
About this report2-4Restatements of informationAbout this reportActivities and workers2-6
Activities, value chain and other businessrelationships
Immaculate Quality: Innovative R&D, Responsible Procurement
Appendix 1: Key Performance Table2-7Employees
Harmonious Life: Employee Rights and Bene?ts
Appendix 1: Key Performance Table2-8Workers who are not employees
Harmonious Life: Employee Rights and Bene?ts
Appendix 1: Key Performance Table
DisclosureItem
Disclosure TitleChapters
Governance2-9Governance structure and compositionHonest Governance: Corporate Governance2-10
Nomination and selection of the highestgovernance body
Honest Governance: Corporate Governance2-11Chair of the highest governance bodyHonest Governance: Corporate Governance2-12
Role of the highest governance body inoverseeing the management of impacts
Honest Governance: Corporate Governance2-13
Delegation of responsibility formanaging impacts
Honest Governance: Corporate Governance2-14
Role of the highest governance body insustainability reporting
About Highpower Technology: Sustainable Development Management
Shared responsibility: corporate governance2-16Communication of critical concerns
About Highpower Technology: Sustainable Development Management
Honest Management: Corporate Governance
Immaculate Quality: Product Quality and Customer Service2-17
Collective knowledge of the highestgovernance body
About Highpower Technology: Sustainable Development
Management
Honest Management: Corporate GovernanceStrategy, policies and practices2-22
Statement on sustainable developmentstrategy
About Highpower Technology: Sustainable Development
Management
Immaculate QualityAbout Highpower TechnologyAppendix2023Environmental，Social and Governance (ESG) ReportHonest GovernanceGreen PlanetHarmonious Life
DisclosureItem
Disclosure TitleChapters2-25Processes to remediate negative impactsHonest Governance: Business Ethics and Anti-Corruption2-26
Mechanisms for seeking advice and
raising concerns
About Highpower Technology: Sustainable DevelopmentManagementHonest Governance: Business Ethics and Anti-Corruption2-27Compliance with laws and regulationsHonest Governance: Business Ethics and Anti-Corruption2-28Membership associations
Immaculate Quality: Innovative R&DAbout Highpower Technology: Sustainable DevelopmentManagementStakeholder engagement2-29Approach to stakeholder engagement
About Highpower Technology: Sustainable DevelopmentManagement2-30Collective bargaining agreementsHarmonious Life: Employee Rights and Bene?tsGRI 3: Material Topics 20213-1Process to determine material topics
About Highpower Technology: Sustainable DevelopmentManagement3-2List of material topics
About Highpower Technology: Sustainable DevelopmentManagement3-3Management of material topics
About Highpower Technology: Sustainable DevelopmentManagementTopic StandardsGRI 201: Economic Performance 2016201-3
De?ned bene?t plan obligations and
other retirement plans
Harmonious Life: Employee Rights and Bene?ts
DisclosureItem
Disclosure TitleChapters
201-4
Financial assistance received fromgovernment
Immaculate Quality: Innovative R&DGRI 203: Indirect Economic Impacts 2016203-1
Infrastructure investments and servicessupported
Honest Governance: Community Contribution203-2Signi?cant indirect economic impactsHonest Governance: Community ContributionGRI 205: Anti-corruption 2016205-1
Operations assessed for risks related tocorruption
Honest Governance: Business Ethics and Anti-Corruption205-2
Communication and training about anti-corruption policies and procedures
Honest Governance: Business Ethics and Anti-Corruption205-3
Con?rmed incidents of corruption andactions taken
Honest Governance: Business Ethics and Anti-CorruptionGRI 206: Anti-competitive Behavior 2016206-1
Legal actions for anti-competitivebehavior, anti-trust, and monopolypractices
Honest Governance: Business Ethics and Anti-CorruptionGRI 301: Materials 2016301-1Materials used by weight or volume
Green Planet: Resource Management
Appendix 1: Key Performance Table301-2Recycled input materials used
Green Planet: Resource Management
Appendix 1: Key Performance Table
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DisclosureItem
Disclosure TitleChapters301-3
Reclaimed products and their packaging
materials
Green Planet: Resource ManagementAppendix 1: Key Performance TableGRI 302: Energy 2016302-1
Energy consumption within the
organization
Green Planet: Low Carbon OperationAppendix 1: Key Performance TableGRI 303: Water and E?uents 2018303-1Interactions with water as a shared resourceGreen Planet: Resource Management303-2
Management of water discharge-related
impacts
Green Planet: Pollutant Management303-5Water consumptionGreen Planet: Resource ManagementGRI 304: Biodiversity 2016Appendix 1: Key Performance Table304-2
Signi?cant impacts of activities,products and services on biodiversity
Green Planet: Environmental ManagementGRI 305: Emissions 2016305-1Direct (Scope 1) GHG emissionsGreen Planet: Low Carbon Operation305-2Energy indirect (Scope 2) GHG emissionsAppendix 1: Key Performance Table305-5Reduction of GHG emissionsGreen Planet: Low Carbon OperationGRI 306: Waste 2020Appendix 1: Key Performance Table
DisclosureItem
Disclosure TitleChapters
306-1
Waste generation and signi?cant waste-related impacts
Green Planet: Pollutant Management306-2Management of signi?cant wasteGreen Planet: Pollutant Management306-3Waste generatedGreen Planet: Pollutant Management306-4Waste diverted from disposalAppendix 1: Key Performance Table306-5Waste directed to disposalGreen Planet: Pollutant ManagementGRI 308: Supplier Environmental Assessment 2016Appendix 1: Key Performance Table308-1
New suppliers that were screened usingenvironmental criteria
Immaculate Quality: Responsible ProcurementGRI 401: Employment 2016Appendix 1: Key Performance Table401-2
Bene?ts provided to full-time employeesthat are not provided to temporary orparttime employees
Harmonious Life: Employee Rights and Bene?tsGRI 403: Occupational Health and Safety 2018403-1
Occupational health and safetymanagement system
Harmonious Life: Occupational Health and Safety403-2
Hazard identi?cation, risk assessment,and incident investigation
Harmonious Life: Occupational Health and Safety403-3 Occupational health servicesHarmonious Life: Occupational Health and Safety403-4
Worker participation, consultation, andcommunication on occupational healthand safety
Harmonious Life: Occupational Health and Safety
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DisclosureItem
Disclosure TitleChapters403-5
Worker training on occupational health
and safety
Harmonious Life: Occupational Health and Safety403-6 Promotion of worker healthHarmonious Life: Occupational Health and Safety403-7
Prevention and mitigation ofoccupational health and safety impactsdirectly linked by business relationships
Harmonious Life: Occupational Health and Safety403-8
Workers covered by an occupationalhealth and safety management system
Harmonious Life: Occupational Health and Safety403-9Work-related injuriesHarmonious Life: Occupational Health and Safety403-10Work-related ill healthHarmonious Life: Occupational Health and SafetyGRI 404: Training and Education 2016404-1
Average hours of training per year peremployee
Harmonious Life: Employee Training and Development404-2
Programs for upgrading employee skillsand transition assistance programs
Harmonious Life: Employee Training and DevelopmentGRI 405: Diversity and Equal Opportunity 2016405-1
Diversity of governance bodies andemployees
Harmonious Life: Employee Rights and Bene?tsGRI 406: Non-d iscrimination 2016406-1
Incidents of discrimination andcorrective actions taken
Harmonious Life: Employee Rights and Bene?ts
DisclosureItem
Disclosure TitleChapters
GRI 414: Supplier Social Assessment 2016414-1
New suppliers that were screened usingsocial criteria
Immaculate Quality: Responsible ProcurementGRI 416: Customer Health and Safety 2016416-1
Assessment of the health and safetyimpacts of product and servicecategories
Immaculate Quality: Product Quality and Customer ServiceGRI 417: Marketing and Labeling 2016417-1
Requirements for product and serviceinformation and labeling
Immaculate Quality: Product Quality and Customer Service
HeadquartersHong Kong O?ceTaiwan Contact InformationU.S.Contact InformationBuilding 1, 68 Xinxia Road, PinghuTown, LonggangDistrict, shenzhen Guangdong, China 518111Tel: +86-755-8968-6533Fax: +86-755-8968-6916E-mail: Marketing@highpowertech.com
Room 2003, 20/F, Prosperity Place, NO.6 Shing Yipstreet, Kwun Tong, Kowloon, Hong KongTel: +852-3565-0188Fax: +852-3565-0176
3F., No.342-1, Sec 7, Chengde Rd., Beitou Dist., Taipei112, TaiwanTel: +886-2-2828-5987Fax:+886-2-2828-5590
2382 Terraza Ribera Carisbad, CA92009Tel: +1-909-214-2482