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杰普特:杰普特2020年社会责任报告英文版 下载公告
公告日期:2021-09-18

Social Responsibility

Report 2020Create Values and Serve the Mankind

With Leading Optical Technology

Shenzhen JPT Opto-electronics Co., Ltd.

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

“Integrate light” --- grow with industrial giants viacooperation and mutual winOffer closer service and research and develop new products based onthe requirements of key customers“Globalization strategy” helps JPT to enter the supply chains of majorcustomersProtect rights and interest of suppliers, customers and consumersEngage a management team from IBM to help with digitaltransformation of the Company“Emit light” --- remain true to original aspiration andbear in mind the mission to benet the mankindContinue on the development path of quality benefits and promotelocal economic developmentProtect rights and interest of shareholders and creditorsPromote the social good and give back to the societyJointly build the community and address concerns of the local people“Gather light” --- put people rst and buildharmonious culture

Practically protect rights and interest of its staffEffectively arouse enthusiasm of the staffTeam management and talent developmentPrepare to establish JPT Growth College and improve skills of coretalentsMaintain a balance between life and workFully ensure safe productionEnsure product safety

Table ofContents

Introduction of JPTLeader's OrationCompany OverviewCSR performance diagram 2020“Create light” --- match the international leadinglevel and create the “light of China”Stick to the industrial positioning of “laser+” and replaceimported products with domestically made onesMOPA lasers have first mover advantages and strong productscompetitivenessMajor customers of optical and laser equipment were developedand relevant revenue doubledExpand global customers and improve service qualityAcquire to hold equity and consolidate industrial layout“Pursue light” --- keep investing and drivedevelopment with innovationBuild four major advanced technology R&D platforms and create“hidden global champions”Keep increasing R&D investment and increase the number ofR&D staffGive play to the advantage of domestic and foreign “double-center” R&DMake breakthroughs in market segments with technical progressPatent reserves contain core valuesRespect and protect intellectual property rights and promotedevelopment of the industry

“Give light” --- empower with wisdom andshare a green futureEmpower traditional industry with advanced manufacturingTotal cost management and full process cost controlConserve energy, cut emissions and protect the environmentResponsibility managementSocial responsibility modelIdentification and management of key social responsibilityissuesResponsibility strategySocial responsibility organization systemResponsibility communication

Appendix

About this reportIndexFeedback Form

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Introduction of JPT

Leader's Oration

The year 2020 is a very eventful year. The Covid-19 pandemicbroken out at the beginning of the year had great impact onvarious industries. But inspired by our dreams, we braved thedifficulties to lay a solid foundation for healthy and quick futuredevelopment of JPT.In 2020, we achieved expansion in dicult situations. Afterthe Company went public in October 2019, the long-troublingfunding problem was finally resolved and the Company couldimplement its medium- and long-term strategic planning in acalmer and more sound way. In 2020, the Huizhou IndustrialPark which JPT invested to build was successfully put intooperation. Since then, the Company put a stop to its rentaldays for 15 years and integrated its laser source product lineand smart device product line together, which helped improvethe synergy effect, expand JPT’s overall production capacityto five times of the original and significantly release its growthpotentials. In 2020, the Company increased R&D investmentto 101 million CNY despite difficulty situations, accountingfor 12% of its total operating revenue of 854 million CNY,an increase over 50% compared with that in 2019. In themeantime, the Company hired 220 new R&D engineers in 2020,a year-on-year increase of 58%, which helped to build a talentpool for JPT’s future development.In 2020, several of our products became global “hiddenchampions”. The market share of some of JPT’s products keptincreasing and the Company created an overall revenue 50.37%higher than that in the last year. Various laser businesses of theCompany continued to grow. Its competitive product --- MOPA

pulse fiber laser had an increased average power to 2000W,consolidating JPT’s global leading edge in this field; the high-brightness MOPA pulse laser had been successfully developed,offering a new technical solution for the PV and lithiumindustries; the stable quality and high cost efficiency of theDPSS laser of the Company won recognition from customersand the DPSS UV laser business saw a substantial growth; interms of high-power CW fiber laser, 6000W single-module and30,000W high-power products were launched to offer domesticsolutions for the high-power laser cutting market; a series ofultrafast lasers such as infrared and UV picosecond ultrafastlasers were developed in the second half of 2020 to provide anexcellent tool for laser precision processing and manufacturing.JPT’s cooperation with Apple was further enhanced. In Q1 of2020, the Company won orders of laser/optical intelligentequipment worth 198 million CNY from Apple, laying a solidfoundation for its further expansion in Apple supply chain. Inthe second half of 2020, the globally tight production capacityof chip resistors and inductors prompted resistor, capacitorand inductor manufacturers in China to greatly expand theirproduction capacity. Therefore, the Company received a largenumber of orders of laser trimmer, laser scriber and intelligentpeeling systems, in which the shipping volume of the lasertrimmer ranked top in the world.In 2020, we achieved innovations and breakthroughs inmany elds. In meeting the needs of benchmark customersin key downstream industries, the Company made some

progresses in R&D of the laser/optical intelligent equipment.JPT developed the VCSEL chip module full-function testingsystem for important mobile phone-dominated 3C electroniccustomers and became one of the core suppliers of Applewith the help of the first application of this technologyin the industry sector. Meanwhile, JPT continued its deepcommitment to integrated circuit passive component industryand kept developing such high-end devices as laser precisionmarking, laser precision welding and high-speed AOI. In thehighly developing silicon photonics semiconductor industry,JPT developed a silicon photonics wafer testing system andbecame a supplier of Intel --- a leader in silicon photonicstechnology --- to offer testing systems for its most advanced400G data center products. Besides, JPT developed the VCSELchip test system for AMS, a world-leading micro-optic solutionprovider. In terms of the PCB industry, JPT developed a high-speed laser drilling system and a flexible PCB cutting system.In 2020, we started digital transformation and enhancedour core competitiveness. In 2020, the Company engageda team from IBM to launch its digital transformation. It fullysupported the transformation to adopt the customer needs-based and product R&D-oriented strategy via custom-madePLM, OA, ERP and WMS data decision-making platforms. It alsotried, via such digital transformation, to integrate upstream anddownstream on the supply chain, strengthen direct connection& communication with its suppliers and customers, enableefficient collaboration and create a win-win supply chainecosystem.

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Via the digital transformation, the Company blended digitalizationand intelligentization of full lifecycle of products throughoutits production, operation, R&D and management, enabled real-time operational data presentation, digital production operation,refined operation management and intelligent decision-makingsupport, and improved its core competitiveness.In 2020, we walked along with international giants to accelerateupgrading of our global strategy. As the overseas headquartersof the Company’s global presence, the Singapore R&D Center playsa vital strategic role and vigorously promotes quick entry of theCompany into the supply chain system of globally renown majorcustomers. In 2020, the Company started from the enterprises inTaiwan to get a quick access to the Japan market and won ordersfrom major customers in Japan. In the meantime, the Companypurchased 100% equity of Hylax Technology Pte Ltd., Singapore,laying a solid foundation for entering the global supply chainof major semiconductor customers. By now, global branches ofthe Company have had presence in many countries and regionsincluding Singapore, U.S., Korea, Japan and Taiwan in China.In 2020, we got deeply involved in ghting and rescue againstthe Covid-19 pandemic. After the breakout of the pandemic, theCompany took the initiative to participate in rescue, preventionand control against the Covid-19 according to the preventionand control requirements of the government. JPT donated 1million CNY to the inflicted area in Hubei, helped three hospitalsbuild virus detection centers and purchased medical supplies foremergency use such as protective suits and medical N95 masks

via its overseas channels and sent them to the hospitals in Wuhan.During recovery after the pandemic, JPT expanded in unfavorablecircumstance, recruited a large number of R&D engineers andenabled growth in its operating performance.In the future, JPT will stick to its industrial positioning of“laser+” and devote deeply into the upstream laser source coretechnologies. It will establish deep cooperation with benchmarkcustomers in such industries as 3C, new energy, integratedcircuit and semiconductor in order to replace imported lasertechnologies and products (solutions) with domestically madeones. It will cooperate with downstream laser equipment suppliersfor mutual win and jointly build a healthy ecosystem for the laserindustry. Based on the Fourteenth Five-Year Plan, JPT will help themanufacturing industry in China to transform and upgrade from“made in China” to “mind in China”. Meanwhile, JPT will accelerateaccess into overseas markets, serve the world with the lasertechnologies in China and strive to develop 8 to 10 “hidden globalchampion” products within 5 to 10 years.Huang Zhijia, ChairmanLiu Jian, General Manager

Huang Zhijia, Chairman Liu Jian, General Manager

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Founded in 2006 and went publicin October 2019 on the SSE Sci-TechInnovation Board, Shenzhen JPT Opto-electronics Co., Ltd. (stock code: 688025) isa national high-tech company engaged inR&D, production and sales of lasers, laser/optical intelligent equipment and fiberoptic components.JPT is the first manufacturer in Chinaof “high-power MOPA pulse fiber laserfor commercial purpose” and a leadingsupplier of the opto-electronics precisioninspection and laser processing intelligentequipment. Currently, the Company is aglobal leader in the MOPA pulse fiber laserand a world-leading manufacturer of theoptical laser inspection equipment andthe laser trimmer.

The products of the Company includelasers, laser/optical intelligent equipmentand fiber optic components and findwide application in the traditionalmanufacturing, 3C electronics, automobileand new energy industries. The intelligentequipment can be used in such fieldsas laser precision processing, spectruminspection, consumer electronics productmanufacturing and manufacturingof SMDs. The Company has built aninternational R&D and marketing platformand its products and services have beensold to many famous customers in Asia,North America and Europe. The productshave won recognition from world-leadingmanufacturers of consumer electronics,semiconductors, optoelectronicscomponents and laser devices, such asApple, Intel, ST Microelectronics, Yageo,Uniohm, Hans Laser and Danaher.

On the basis of laser R&D, JPT hasestablished laser & optics, testing& measurement, motion control& automation and machine visiontechnology platforms and keepsdeveloping proprietary intellectualproperty rights. By the end of 2020,the Company has owned 380 licensedintellectual property rights and set upseveral R&D centers or subsidiaries inChina, Singapore, U.S., Japan and Korea.

Company Overview

By the end of 2020,the Company has owned

licensed intellectualproperty rights

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Stage of laserdevelopment

Stage of laser further-developmentand intelligent equipment start-up

Stage of fast laser and intelligentequipment development

Milestones

2006Founding of JPT

2009

Its “high-power fiber laserproject” winning theInnovation Award of theChina (Shenzhen) Innovation& EntrepreneurshipCompetition”

2010

Establishment of the subsidiary inSingaporeSuccessful development of the firstcommercial MOPA pulse fiber laser

2013

Winner of Shenzhen Science andTechnology Patent AwardWinner of the qualification to buildthe Guangdong Provincial Fiber LaserEngineering Technology ResearchCenter and the Shenzhen MunicipalHigh-power Fiber Laser EngineeringResearch and Development Center

2015Successful developmentof the first-generationlaser trimmer

2016

Successfuldevelopment of thehigh-precision chiplaser marking system

2018

Successful development of thefully automated VCSEL moduletesting systemSuccessful the fully automatedLED-PD integrated module testingsystemWinner of the First Prize ofShenzhen Science and TechnologyProgress Award 2018

2020

Full operation of Huizhou JPTOptical Fiber Laser Industrial ParkAcquisition of Hylax in SingaporeFounding of sub-subsidiaries inU.S. and Japan.

2019

Listing on SSE Sci-Tech Innovation BoardCommencement of the constructionof Huizhou JPT Optical Fiber LaserIndustrial Park

2017Successful development ofthe 1000W single-module CWfiber laserSuccessful development ofthe 10W UV and 10W greenDPSS lasers

2014

Successful development ofthe first-generation spectrummeasurement systemEntry into the supply chain ofApple

2012

Obtaining the fund for the achievementtransformation project of the “PeacockPlan” for overseas high-level talents inShenzhenSuccessful development of the “high-power CW fiber laser”Stage of opticalber components

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Company governance structure

General Meeting of Shareholders

Board of SupervisorsOce of Secretary to ChairmanGeneral Manager

(Dongguan JPT)Internal AuditDepartment

Strategy DevelopmentDepartment

Office ofGeneral Affairs

External CooperationDepartment

Supply ChainManagement Center

LaserBusiness UnitHRDepartment

FinanceDepartment

Digital Transformation

Center

Intelligent Equipment

Business Unit

Optical DevicesBusiness Unit

OverseasSubsidiaries

ChineseSubsidiaries

JPT ELECTRONICS

PTE LTD

JPT OPTO-ELECTRONICS KOREA

CO., LTD.

Board of DirectorsStrategy CommitteeNomination CommitteeCompensation CommitteeAudit Committee

EHS DepartmentAdministrative ServiceDepartmentExternal RelationsDepartment

Process ManagementDepartmentIT System Building

DepartmentIT Infrastructure

Department

Plan Management

DepartmentPurchase Management

Department

Shenzhen Huajie Software

Technology Co., Ltd.Shenzhen Huapu Software

Technology Co., Ltd.Huizhou JPT Electronic

Technology Co., Ltd.JPT OPTO-ELECTRONICS

(US) INC.

JPT JAPAN CO., LTD.

Introduction of JPT “Create light” ---

match the international leading level

and create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Mission

Values

Create Values andServe the MankindWith Leading OpticalTechnology.

Customers Success,

Respect People,Pursue Excellence,Win-Win Cooperation.

Development directions

Lasers

JPT will advance towards the technical direction of “high power, highbrightness, multiple wavelength and ultra-short pulse” and focus ondeveloping such products as MOPA fiber lasers, CW fiber lasers, DPSSlasers and semiconductor lasers.

Laser/optical intelligent equipmentJPT will expand towards such niches as ultrahigh precision lasertrimmer, laser scriber, flexible and brittle material microprocessingdevices and semiconductor testing systems.

VisionTo Be Global LeadingProvider of Lasers andIntelligent Equipment.

Introduction of JPT “Create light” ---

match the international leading level

and create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Company and individual honorsCompany honorsName of honorAwarded by

National High-tech Enterprise

Shenzhen Municipal Science and Technology InnovationCommission, Shenzhen Finance Bureau and Shenzhen TaxService, State Taxation AdministrationInnovation Award of China (Shenzhen) Innovation &Entrepreneurship Competition

Shenzhen Municipal Science and Technology InnovationCommission, Shenzhen Finance Bureau and Shenzhen TaxService, State Taxation AdministrationGuangdong Provincial Fiber Laser (JT) EngineeringTechnology Research Center

Department of Science and Technology of Guangdong ProvinceDepartment of Science and Technology ofGuangdong Province

Shenzhen Municipal Science and Technology Innovation

CommissionShenzhen Patent Award 2013Shenzhen Municipal People’s GovernmentSecond Prize of Shenzhen Science and TechnologyProgress Award 2014

Shenzhen Municipal People’s GovernmentPostdoctoral Innovation Practice Base

Human Resources and Social Security Bureau of Shenzhen

MunicipalityEnterprise Loyally Abiding by Contracts and Credits inGuangdong Province

Shenzhen Administration for Market RegulationEnterprise Offering Express Services for Big Businessesin Shenzhen

Shenzhen Municipal People’s GovernmentEnterprise Cultivated for Strategic Emerging Industryin Guangdong Province (intelligent manufacturing)

Department of Industry and Information Technology of

Guangdong ProvinceFirst Prize of Shenzhen Science and TechnologyProgress Award 2018

Shenzhen Municipal People’s GovernmentHigh-growth Small and Medium Enterprises inGuangdong Province

Department of Industry and Information Technology of

Guangdong ProvinceShenzhen Municipal Laser Precision Micro-processingTechnology Engineering Research Center

Development and Reform Commission of Shenzhen

MunicipalityEnterprise on the Seventh List of Honest Small andMedium Enterprises

Shenzhen Credit Guarantee GroupShenzhen Enterprise Technology CenterShenzhen Industrial and Information Technology BureauNomination Award of Shenzhen Industry Awards

Federation of Shenzhen Industries and Shenzhen Economic

DailShenzhen Craftsman Cultivation Demonstration Unit

Shenzhen Expert Assessment Committee of “100 Outstanding

Craftsmen” and Federation of Shenzhen IndustriesIntellectual Property Right Demonstration Enterpriseof Guangdong Province 2020

Guangdong IP Protection Association

Individual honorsName of honorWinnerAwarded by

Influential Entrepreneurs of the YearHuang ZhijiaChinese Optical SocietyYouth Science and Technology Award ofShenzhen Municipality

Liu JianShenzhen Municipal People’s GovernmentDeputy to the People's Congress of ShenzhenMunicipality

Liu JianShenzhen Municipal People’s GovernmentMember of the Standing Committee of theNational People's Congress of Longhua District,Shenzhen

Liu Jian

Shenzhen Longhua New District ManagementCommitteeManagement Committee Director Award,Shenzhen Longhua New District Science andTechnology Innovation Award

Liu Jian

Shenzhen Longhua New District ManagementCommitteeOutstanding Entrepreneurial Talents from Top10 Small and Medium Enterprises in ShenzhenMunicipality

Liu Jian

Shenzhen Promotion Association for Smalland Medium Enterprises and ShenzhenSpecial Zone DailyMay lst Labor Medal in Longhua DistrictLiu Jian

Shenzhen Longhua District Federation ofTrade UnionsShenzhen Influential Business Figures – RisingStars

Liu Jian

Federation of Shenzhen Commerce andShenzhen General Chamber of CommerceShenzhen Quality City Gold MedalHuang ZhijiaShenzhen Quality City Promotion AssociationNomination Award of Shenzhen IndustryAwards

Huang Zhijia

Federation of Shenzhen Industries andShenzhen Economic Daily100 Outstanding Craftsmen in Shenzhen

Zhao Chongguang,

Liu Ming, Tang Ming,

Zhu Jiangjie

Federation of Shenzhen Industries andShenzhen Economic DailyMay l

st

Labor Medal in Longhua DistrictZhao Chongguang

Shenzhen Longhua District Federation ofTrade UnionsBrand Manager Training Certificate ofCompetence

Gong ChaoShenzhen Quality City Promotion AssociationEntrepreneurial Pioneer in Longhua DistrictHuang Zhijia

Association of Industry and Commerce ofLonghua District, ShenzhenQuality Building Figures with DistinguishedAchievements in Shenzhen Municipality

Huang ZhijiaShenzhen Quality City Promotion AssociationNote: Statistics as of December 31, 2020.

Introduction of JPT “Create light” ---

match the international leading level

and create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Partners

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and build

harmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Net assets belonging toshareholders of listed companies

16.15

billion CNY

Operating costs

million CNY

Basic earnings per share

0.48

CNY /share

Total number of licensedtechnical patents

Green production

Green energy

CSR performance diagram 2020

Total assets

21.64

billion CNY

Operating income

million CNY

Net profits belongingto shareholders of listedcompanies

44,297,600CNY

R&D investment

million CNY

Investment inenvironmental protection

million CNY

Economicperformance

Socialperformance

Environmentalperformance

All the employees participate in improving cost management, break down andimplement the cost control objective at all levels to truly cut cost and protectresources;In 2020, the product full lifecycle digital management system was launchedand greatly promoted green operations, energy conservation and efficiencyimprovement of the Company.The process cooling system and the heat recovery system built and put intooperation in the new plant area in Huizhou are expected to save power of 740,000kWh every year compared to the laser chiller solution and offer 24-hour heat-recovered hot water for the industrial park to improve the staff’s wellbeing in life.JPT has reduced the volume of packaging materials used, started cyclic utilizationand consumed 30 ton cartons and 56 ton wooden cases, reducing 30% and 12.5%respectively compared with those in the previous year.The Company has been dedicated to improving efficiency of lasers and its CWefficiency has increased from 33% to about 40%. Its annual shipping volume isexpected to reach 15 million kWh (20 hours a day for about 300 days a year). Thissaves 135 million kWh power, including the power saved for the water chiller, forthe customers.

Green operation

Green environment-protection measuresNumber ofenvironmental-protection projects

Hours of environmentalprotectiontrainings

1,172hours

586 persons/time and twohours/time

Times ofenvironmentalprotection training

timesOnce every month

Total amount of tax payment

27,063,700CNYNew job created

peopleLabor contract signing rate100%

Charitable donation

1.10

million CNYProportion of female staff

28.35%

Social insurance coverage100%

Investment in targetedpoverty alleviation

0.2

million CNYProportion of stafffrom ethnic minorities

8.88%

Weighted averagereturn on net assets

2.80%

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

“Create light” ---

match the international leadinglevel and create the “light of China”

He core of advanced manufacturing is light manufacturing. JPT is devoted to“laser+” and has the confidence and commitment to “leading optical technologiesfor people”, match internationally leading level and create the “light of China”.Our performance: In 2020, we obtained a sales lasers revenue of 412 million CNY,increasing by 53% compared with that in 2019. The revenues of the Companyfrom laser/optical intelligent equipment were 379 million CNY in the same year,increasing by 100.03% compared with that in 2019.

Idea and objective:

Our perf ormance:

Response of SDGs:

Stick to the industrial positioning of “laser+” and replace imported products with domesticallymade onesMOPA lasers have first mover advantage and strong product competitivenessMajor customers of optical and laser equipment were developed and relevant revenue doubledExpand global customers and improve service qualityAcquire to hold equity and consolidate industrial layout

Introduction of JPT “Create light” ---

match the international leading level

and create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Stick to the industrial positioning of “laser+” and replaceimported products with domestically made ones

Product category tableRevenue (Unit: 10,000 CNY)ProportionLasers41,21448.3%Fiber optic components37,93644.4%Fiber optic components3,0293.5%Others3,1783.7%Total85,357100.0%

Leadingmanufacturerof MOPA pulsedfiber laser

Top 3 offiber lasermanufacturersin China

Leadingsales of lasertrimmers in the

world

Laser sourceexclusive supplier

of Danaher in

China

Leadingmanufacturer ofoptical precisiontesting systems

The “+” in “laser+” has three levels of meanings: firstly, it means to develop great laser sources and offerappropriate module products;Secondly, it means to replace imported lasers and optical intelligent equipment with domestically madeone;Thirdly, it means to develop special laser equipment for subsectors, mainly including intelligentequipment in the fields of precision processing, semiconductors, and pan-semiconductors.

IntelligentEquipment

Optical Devices

Lasers

Fiber OpticConnectors

MOPA FiberLasers

Laser Precision

Marking

PassiveComponent

OpticalMeasurement

ModuleTesting

Laser Micro-processing

LaserWelding

CW Fiber

Lasers

DPSSLasers

Ultrafast

Lasers

Fiber OpticComponents

PumpSource

QBH

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

MOPA lasers have first mover advantageand strong product competitiveness

Since its founding, the Companyembarked on a technical path differentto any other laser manufacturer inChina and tried to do “correct butdifficult things”. After eight-yearattempts from 2006 to 2014, JPTbecame the first manufacturer in Chinamass-producing MOPA pulse fiberlasers for commercial purpose.MOPA pulse fiber lasers feature pulsewidth modulation, wide frequencyrange, quick response speed, usablefirst pulse, small fluctuation of outputpower within the full temperaturerange, small size and low noise.Currently, the 200W MOPA pulsefiber laser has been put into massproduction and sales; orders of the350W single-module product havebeen obtained; prototypes of the2000W multi-module product have

been developed and its overalltechnology and sales volume aresuperior to those of other majormanufacturers in China. MOPA lasersof the Company still have strong pricesand sales.In terms of CW lasers, single-moduled2kW and multi-moduled 30kW CWfiber lasers of the Company have beenput into mass production and sales andlead other similar products in China.In terms of DPSS lasers, the 1-15W UVand 1-30W green light DPSS lasers havebeen put into mass production andsales and lead other similar productsin China. In 2020, JPT increased itsproduction capacity of the DPSSlaser, improved the laser processingstandardization of basic products andconsolidated subsequent development

strength of relevant product line. In Q4of the same year, JPT even launchedthe DPSS ultrafast laser and furtherpromoted its goal of diversifying lasercategories.The revenue from laser sales continuedto increase to 412 million CNY,accounting for half of the overallrevenues of the Company.

Laser revenue growth in 2020

53%

High-power lasers produced by JPT

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

In 2020, the Companyobtained a revenue of

million CNY

JPT is devoted to developing laserdevices for the resistance industry and serving majorplayers in the eld of ceramic resistors.

JPT laser devices mainly include laser trimmer, laser scriber andchip laser marking and tracing system. The laser trimmer is usedto cut thick and thin resistors and the laser scriber is used forscribing on ceramic substrate of chip resistors.JPT laser devices mainly include laser trimmer, laser scriber andchip laser marking and tracing system. The laser trimmer is usedto cut thick and thin resistors and the laser scriber is used forscribing on ceramic substrate of chip resistors.In the second half of 2020, the globally tight production capacityof chip resistors and inductors made the electronic industry inChina to enter the market development status dominated by“internal circulation”. Large resistor and inductor suppliers startedto use domestically made substitute products and thus JPTobtained a large amount of orders of laser trimmers, laser scriberand intelligent peeling machines.

The optical inspection device is one of the core productssupplied in the industrial chain of Apple and has world-leadingtechnologies.

The optical intelligent equipment of the Company includes intelligent opticalspectrum measurement system, silicon photonics wafer testing system andVCSEL laser module testing system, all with internationally leading technologylevel. After years of operations, the Company has sold products to suchfamous companies as Apple, AMS, STMicroelectronics, LGIT, Kamaya, Yageo,Uniohm, Cyntec and Walsin Technology.JPT has become one of the core suppliers of Apple in the field of spectrummeasurement. Such intelligent spectrum measurement system entered theindustrial chain of Apple in 2014 for measuring optical characteristics of thecover glass used on the screens of smart phones and tablets. In 2020, JPTintensified and expanded cooperation with Apple, bringing in an operatingrevenue of 198 million CNY and an overall gross profit margin of 31.68%.Major competitors of the Company include famous foreign suppliers ofinspection and analysis devices, such as Shima Seiki and Gamma Scientific.The silicon photonics wafer testing system and the VCSEL laser module testingsystem were developed at the end of 2018 and customized based on thenew products developed by well-known international customers. Now theseproducts have been supplied to famous international consumer electronicsand semiconductor companies, including Apple.

In 2020, the Company obtained a revenueof 379 million CNY from the laser/opticalintelligent equipment, with a year-on-year increase of 100.03%. The laser/opticalintelligent equipment become the secondlargest source of revenue in JPT.

VCSEL laser module testing system

JPT laser trimmer

Major customers of optical and laser equipment weredeveloped and relevant revenue doubled

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Expand global customers and improve service quality

Oer total solutions and create values forcustomersThe objective of the Company is to create values forcustomers, rather than compete with peers in prices.When offering services to Yageo, JPT found that Yageorequired a considerable amount of laser devicesglobally and the core demand was the laser trimmer.However, the mainstream products in the marketwere made by Japan, Taiwan and U.S and featuredhigh energy consumption and inconvenient use.JPT’s products only consume 50% energy ofthe traditional products and can be free frommaintenance within the first five years. By using suchproducts for three years, customers can save the costof one product, making them perfect choices forcustomers. Therefore, JPT won 70% of the new marketshare of the global laser trimmer industry in 2020.

JPT laser trimmer

In 2020, JPT won

70%new market share in the globalmarket of laser trimmers.

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

The Company’s business presences canbe found all over the world and manybranches have been set up globally,including subsidiaries in Singapore andKorea, sub-subsidiaries in U.S. and Japan,and offices in Taiwan in China, Germany,India and Turkey as well as Suzhou,Guangzhou and Wuhan of China.

Oces in China:

Guangzhou, Wuhan, Chongqing, Chengdu, Ningbo, Wenzhou, Jinan and Suzhou;

Overseas branches:

Taiwan in China, Singapore, Korea, U.S., Japan, India, Germany and so on

Expand the network and serve global customers

Locations of officesThe red areas show the scope of business

Europe:

Germany, Russia, France,Italy, Finland, Spain, theNetherlands and Britain

Asia:

China, India, Singapore,Korea, Japan, Turkey,Vietnam, Thailand,Malaysia and Saudi Arabia

Oceania:

Australia

North America:

U.S. and Canada

South America:

Brazil

Introduction of JPT “Create light” ---

match the international leading level

and create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Product sales seminar2020

China

67.5%

Ireland

21.6%

Denmark

0.2%

France

0.2%

Vietnam

0.1%

Others

0.3%

U.S.

3.5%

Germany

2.4%

Korea

1.7%

India

1.2%

Singapore

0.5%

Japan

0.5%

Turkey

0.3%

Chart of regional proportion of overseas sales revenues of products

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

In December 2020, the Company increaseda capital of USD 10 million to its subsidiaryJPT Singapore with its own funds andagreed that JPT Singapore acquired 100%equity of Hylax Technology Pte Ltd at theprice of SGD 10 million. With an advancedlaser micro-nano application and processdevelopment center in Southeast Asia,Hylax mainly focuses on precision micro-processing of semiconductors and lasermicro-processing of medical products. Ithas been serving such famous internationalcompanies as Philips, HP, 3M, GE, Osram,Foxconn and Texas Instruments.

The Company has acquired Hylax for itsprofitability and customer resources in thesemiconductor, medical, LED display andelectronic industries. The semiconductorindustry has always been a closed industry,hard to be quickly accessed by a newcompany. Therefore, acquiring Hylax is afaster way for the Company to expand itscustomer groups.

In January 2020, the Company investedin Wuhan Changjin Laser TechnologiesCo. Ltd. to subscribe 20% of its equitywith JPT’s own funds of 10 million CNY.Wuhan Changjin is dedicated to R&D andmanufacturing of active optical fibers forlasers. In 2020, JPT purchased active opticalfibers worth 4.7 million CNY from it in placeof part of the active optical fibers originallypurchased from overseas companies.

Hylax, SingaporeDrawing tower of Wuhan Changjin

Acquire to hold equity and consolidate industrial layout

In December 2020,JPT Singapore acquired 100%equity of Hylax at a price ofSGD

million

In January 2020,JPT subscribed

20%

equity

from Wuhan Changjin LaserTechnologies Co. Ltd.

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

“Pursue light” ---

keep investing and drivedevelopment with innovation

JPT staff pursue light for 15 consecutive years with passion for light and persistence,consolidate the core competitiveness of the Company with innovation drivingand continuous investment, and grasp the key of advanced manufacturing.The Company has set out a “correct but difficult” path in the field of high-endmanufacturing. A good few of its products have become “hidden global champions”.In 2020, JPT invested 100,520,800 CNY in R&D, increasd by 50.86% compared with66,630,300 CNY in 2019. Its R&D staff reached 600, increased 220 or 58% comparedwith the number in 2019. In 2020, JPT had 55 new licensed intellectual propertyrights, including 7 patents of invention, 30 patents of utility model, 4 patents ofindustrial design and 14 software copyrights.

Idea and objective:

Our perf ormance:

Response of SDGs:

Build four major advanced technology R&D platforms and create “hidden global champions”Keep increasing R&D investment and increase the number of R&D engineersKeep increasing R&D investment and increase the number of R&D engineersMake breakthroughs in market segments with technical progressMake breakthroughs in market segments with technical progressRespect and protect intellectual property rights and promote development of the industry

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Build four major advanced technology R&D platformsand create “hidden global champions”

Guangdong Provincial High-power Fiber Laser Engineering TechnologyResearch Center was officially established in JPT.

JPT has built four major advanced technologyR&D platforms as the technical infrastructuresupport and created two major productbusiness units on the basis of such platform:

Laser BU and Intelligent Equipment BU, whichhave given rise to another 11 production linesin total.

MOPA laser product lineCW product lineDPSS UV product lineUltrafast laser product lineSemiconductor laser product line

Precision laser marking product lineBrittle material precision processingproduct lineLaser welding and joining productlinePassive component intelligentequipment product linePrecision module and machinevision product lineNon-standard product line

Laser DivisionIntelligent Equipment Division

4. Motion control technology

R&D platform

Four majoradvancedtechnology R&D

platforms

1. Optical/laser technology

R&D platform

2. Precision measurement

technology R&D platform

3. Machine vision and AI

technology R&D platform

Welding application test of JPT CW laser in cooperation with robot arm

Introduction of JPT “Create light” ---

match the international leading level

and create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

With an aim to select direction, find talents,determine route, combine long-term and short-term goals and keep investing, in recent five years,the Company keeps increasing its R&D expense ata speed far greater than its revenue growth rate.

The Company started enlarging R&D staff in 2015 andthe proportion of R&D staff members kept increasingfrom 25% in 2016 to 40% in 2019 and finally to 47%in 2020.

In 2020, full-time R&D staff of the Company furtherincreased to 600 by the end of the year, increasing by220 or 58% compared with that at the end of 2019.The Company kept improving the size and quality ofits team of R&D staff, with 64.5% of personnel withbachelor and higher degree, laying a solid foundationfor stable and fast growth of the Company.

2016201620172017201820182019201920202020

R&D expense (million CNY)Operating income (million CNY)

Number of R&D staff (unit: person)Total number of staff (unit: person)Proportion

25.00% 30.52% 35.51% 40.90% 46.73%7.33% 7.44% 8.02% 11.73% 11.78%

1284

1000

1000

12001400

Keep increasing R&D investment andenlarging R&D staff

R&Dexpense ratio

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

ResponsibilitymanagementJPT’s young team of doctors

Basic conditions

Current periodPrevious period

Number of R&D staff600380Percentage of R&D staff in overallnumber of staff (%)

46.7340.90

Percentage of R&D staff in overallnumber of staff (%)

5853.283910.66Average compensation of R&D staff13.9415.04Level of education

DegreeNumberPercentage (%)

Doctor172.83Master579.50Bachelor31352.17Junior college16928.17Below junior college447.33Total600100AgeAge rangeNumberPercentage (%)Below 25 years old10617.6725 – 30 years old25342.1730 – 35 years old15425.66Over 35 years old8714.50Total600100

R&D sta composition table

Personneldistribution

Vision

Optics & LaserAutomation

Mechanics

Software

Electronic &Electrical Engineering

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Give play to the advantage of domestic and foreign “double-center” R&D

Number ofoverseas R&D

sta in JPT

doctors

Over 50years old:

30 – 39years old:

20 – 29years old:

40 – 49years old:

masters

bachelors

graduatesfrom juniorcolleges andlower-levelschools

Structure ofoverseas R&Dsta in JPT

Subsidiary in Singapore

By the end of 2020,the Company has

overseas R&D staff,including

Since its founding, the Company set up two R&Dcenters in Shenzhen and Singapore respectively.The new JPT Headquarters Building in Shenzhenput into operation in 2020 consists of severalcenters, including the headquarters operationcenter, the R&D center, the marketing center andthe technical support center. Its key labs alreadyestablished include Guangdong ProvincialFiber Laser Engineering Technology ResearchCenter, Shenzhen Municipal High-power FiberLaser Engineering Technology Research andDevelopment Center, Longhua District High-performance Fiber Laser Engineering Technology

Research and Development Center, ShenzhenLaser Precision Micro-Processing TechnologyEngineering Research Center and ShenzhenEnterprise Technology Center.The R&D Center in Singapore has been identifiedas the global R&D center of the Company tomeet JPT’s medium- and long-term developmentobjectives and focus on research of the needs ofinternational major customers and the intelligentequipment.Some senior executives of the Company,including Dr. LIU Jian and Dr. CHENG Xuepingare graduated from Nanyang Technological

University. The founding of the Singapore R&DCenter helps the Company to use the supportof world-renown higher education institutionsand first-rate hardware and software R&Dconditions, get updated of the latest academicinformation, recruit high-level overseas R&Dtalents, accelerate R&D process and better blendinto the supply chains of global giants of thesemiconductor industry.The Company has global R&D presence inSingapore, U.S., Japan and Korea. By the end of2020, JPT has had 84 overseas R&D staff. Most ofthem are based in the Singapore R&D center andsome are based in U.S., Japan and Korea.

Introduction of JPT “Create light” ---

match the international leading level

and create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Make breakthroughs in market segments with technical progress

Three R&D modes

JPT R&D lab

Customized R&D

It means JPT needs to locatedifficult and pain pointsof customers to be solvedcurrently and conducttargeted researches.

Advanced R&D

It is independent R&D based onJPT R&D plan and the industrydevelopment direction,with the aim to producetechnologies and productsrequired by future customers.

Accompanying R&D

It means to offer accompanying technologies for leadinggiants. Many customers of JPT are the best in their relevantindustries. For example, Apple has been researching anddeveloping products and technologies for the coming threeyears, such as automobiles, AR/VR and face recognitiontechnology. JPT needs to research and develop supportingtechnologies for it.

Semiconductor laser packaging test workshop

JPT has given play to its advantages ininnovative and creative work of a technology-oriented company and made breakthroughsin market segments by understanding endcustomers.In terms of CW lasers, the Company keepsresearching and developing products withhigher power and more applications. Its CWlasers have the highest power of 30,000Wand can support customers in improving theirproduction efficiency.

In terms of DPSS lasers, the Companykeeps devoting to niches, offers customersair and water cooling solutions, enablesapplications including FPCB odd-shapedcutting, film cutting, PCB cutting & marking,photosensitive resin solidification of 3Dprinting and carbon fiber plate cutting andachieves the required processing effect inprecision, efficiency and effect.The picosecond ultrafast laser of the Companyalso keeps updating and will find moreapplications in the precision processing ofsemiconductors and the cosmetic medicine.

In 2020, the Company had 23 R&D projectswith single investment over 3 million CNYand aiming to reach domestically andinternationally leading level and suchprojects mainly involved such fields as lasers,semiconductors, 3C and PCBs. The objectiveof the Company is to develop a completeset of lasers for industrial processing, fullyrespond to customers’ needs, provide bettertechnical and quality guarantee in terms oflight sources for JPT’s laser/optical intelligentequipment and ensure that the Company’sintelligent equipment products have the bestprocessing effect and optimal cost efficiency.

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Patent of industrial design

Patent of industrial design

Software copyright

Software copyright

Others

Others

Total

Total

Accumulatednumber

Patent reserves contain core values

New patentsin this year

Applications Patents obtained

Applications Patents obtained

Patent of invention

Patent of invention

Patent of utility model

Patent of utility model

100200300400500600

20304050607080

Perhaps a single patent or certain technicalbreakthrough has limited value, but whencombined together into an entirety, theymay be able to work wonders.In 2020, JPT had 55 new licensed intellectualproperty rights, including 7 patents ofinvention, 30 patents of utility model, 4patents of industrial design and 14 softwarecopyrights. By the end of December 2020,the Company has an accumulated numberof 380 intellectual property rights, including59 patents of invention, 221 patents ofutility model, 26 patents of industrial designand 74 software copyrights.

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Respect and protect intellectual property rightsand promote development of the industry

Since its founding in 2006, theCompany set the goal of producingindependently developed MOPApulse fiber lasers. Its first prototypeof the MOPA pulse fiber laser wascreated in 2008. After years of qualityimprovement, the Fiber Laser BUstarted to make profit in 2014.

For about 7 or 8 years, JPT staffperformed one after one test andwere fully devoted to researchwithout poaching one talent frompeer companies. The Company reliedtotally upon itself. Choosing a path lesstravelled is the R&D team’s confidenceand commitment to itself.

The Company pays high attention tointellectual property rights to protectintellectual property rights is to protectinnovations. In the industry, JPT hasalways been working steadily with largeforeign players as benchmarks. In themeantime, it competes with domesticpeers in differentiated products andservices rather than purely in prices.JPT is more willing to compete in termsof innovations. It seeks answers andinnovations, develops new blue seamarket, and promotes the developmentof the industry by understanding endcustomers.

W5 conference delegates from OGC 2020 visiting JPT

JPT precision laser engraving application

List of JPT’s partners in production-education-research cooperationNumberPartnerContent of cooperation1Harbin Institute of Technology, ShenzhenJoint Cultivation of Postdoctoral Fellows

South China University of Technology,National University of DefenseTechnology, Southern University ofScience and Technology, ShanghaiInstitute of Optics and Fine Mechanics,China Academy of Sciences, WuhanRaycus Fiber Laser Technologies Co., Ltd.and Hengqin Firay Sci-Tech Co. Ltd.

“Major Special Technology Project of Laserand Additive Manufacturing”, Researchand Development Plan for Key Sectors inGuangdong Province 2018 - 2019

Southern University of Science andTechnology

Joint Cultivation of Graduates

Shenzhen University and ShenzhenIntegrated Geotechnical Investigation &Surveying Co., Ltd.

Special Project of Integration of Chains ofInnovation and Industry of Laser RadarMarine Exploration Equipment

Shenzhen Graduate School of HarbinInstitute of Technology

Technology Project Cooperation of QuickPerformance Test for Dynamic NetworkOptical Signals Based on Kalman Filter

China Electronics Technology GroupCorporation

Strategic Cooperation

Southern University of Science andTechnology

Practice Base Cooperation with School ofInnovation and Entrepreneurship, SouthernUniversity of Science and Technology8Shenzhen University

Pilot Project of Mode-Lock Lasers Based onNew 2D Material

Shenzhen Graduate School of HarbinInstitute of Technology

Development for Key Technology of High-Precision Laser Marking Equipment10South China Normal UniversityFramework Cooperation

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

“Integrate light” ---

grow with industrial giants viacooperation and mutual win

Most partners of JPT are top layers in relevant industries. JPT is deeply convincedthat “you need to fulfill customers first then to win customers”. JPT performs in-depth research of the needs of end customers and takes the initiative to researchand develop products adaptable to the market. Besides, the Company does not relyupon a single product or customer to win. In case of any change in the market andthe customers, its quick adaptability and power to pursue dreams can be amazing.JPT proactively gets closer to customers and has branches in U.S., Korea, Taiwan inChina and Singapore. In 2020, its subsidiary in Singapore completed 370% of itstarget and the amount of orders increased by 118.56% compared with that in theprevious year; the Taiwan branch completed 138% of its target and the amount oforders increased by 483% compared with that in the previous year.In 2020, the Company had 746 suppliers in total, adding 190 new suppliers andeliminating 33. In 2020, the Company enabled, via digital transformation, real-timepresentation of operational data, digital production operations, refined operationalmanagement and intelligent decision-making support.

Idea and objective:

Our perf ormance:

Response of SDGs:

Offer closer service and research and develop new products based on key customer needs“Global strategy” helps JPT to enter the supply chains of major customersProtect rights and interests of suppliers, customers and consumersEngage a management team from IBM to help with digital transformation of the Company

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Offer closer service and research and develop newproducts based on key customers’ needs

In JPT’s corporate culture, one of the key contentsis to contribute to customer success and growwith them. The Company studies not only itscustomers, but also the customers of thesecustomers, tries to locate application scenarios ofend users and solves pain and difficult points ofcustomers.

Why JPT can win favors from major customers?firstly, JPT resonates with customers in technologyand removes barriers in communication sincethe Company is good at innovative and creativework; secondly, major customers are open tothe laser technology for it has a short history ofdevelopment for only over 50 years; thirdly, JPT’sservices exceed the expectations of the customers.

Intel automated cleaning and testing projectJPT DPSS green light lasers

For example: Intel automated cleaning and testing project

This was a new project without any design reference and Intel hadno idea or requirement of automation. The subsidiary in Singaporedeveloped an automation proposal based on the principles of cleaningand testing in the project, recommended and designed the way offeeding materials, including feed box design to develop a conveyingproposal with automated material feeding & unloading, and developedan automated system automatically integrating all processes andfunctions listed above.

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

“Global strategy” helps JPT to enter the supplychains of major customers

In 2020, the global strategy of the Companywas upgraded, which vigorously promotedthe Company to quickly enter the supply chainsystems of well-known global key players.In 2020, the Company started from theenterprises in Taiwan to get a quick access to theJapanese market and won orders from majorcustomers in Japan. The subsidiary in Singaporeoffered supports for customers in ChinaMainland, Malaysia, Singapore, Taiwan in Chinaand Japan, including Intel, Facebook, Rainbowand AMS. By December 2020, the number of thestaff in its subsidiary in Singapore has increasedto 64, increasing by 52% compared with thatin the previous year. In 2020, this subsidiarycompleted 370% of its target and the amount oforders increased by 118.56% compared to that inthe previous year.

Its Taiwan branch currently sells such products aspassive component resistors and semiconductorsand the extended industrial needs includeoptical communication, capacitors, inductors andmodule test devices. Its main customers includeYageo and Walsin Technology. In 2020, Taiwanbranch completed 138% of its target and theamount of orders increased by 483% comparedwith that in the previous year.

JPT subsidiary in SingaporeEquipment Showroom of JPT Taiwan branch

In 2020, its subsidiary inSingapore completed

370%

of its target and the amountof orders increased by

118.56%

compared with that in theprevious year.

In 2020, the Taiwanbranch completed138%of its target and the amountof orders increased by483%

compared with that in theprevious year.

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Protect rights and interest of suppliers,customers and consumersBased on good faith, the Company upholdsthe values of “contributing to customersuccess, respecting individuals, pursuingexcellence and cooperating for mutual win”.It attaches importance to the communicationwith customers and timely offers first-rateservices for customers. It has establisheda complete system of internal controland management of procurement andintroduced clear rules concerning selectionof suppliers, procedure process and inventorymanagement. Different departments withinthe Company interact with each other toensure timely delivery of products and keepproduct quality under control.

Build a responsible supply chain

The Company selects qualified suppliers based onsuch indicators as production capacity, process, termof delivery, and quality and closely cooperates withthe suppliers to help them grow in order to establishstable long-term cooperation relationship with them.The Company strictly follows the process ofintroduction, certification and elimination of suppliersand manages suppliers according to their classes. TheProcurement Management Department conductsmonthly performance assessment of suppliers anddivides the results of such assessment into fourclasses: A, B, C and D in order to select qualifiedsuppliers and eliminate unqualified suppliers fromsuch perspectives of integration, quality and honesty.

Performancerating

The Procurement Management Department performs monthly performance assessmentof the suppliers and the assessment results are divided into Classes A, B, C and D.Class A and Bsuppliers

Class A suppliers will be commended and more new projects will be offered forcooperation; Class B suppliers will be encouraged and promoted to Class A.Class Csuppliers

Class C suppliers will be asked to attend meetings and make rectifications with a fixedterm; suppliers rated as Class C for three consecutive years will be degraded and theirprocurement quota will be cut. Moreover, substitute suppliers will be added in place ofthem.

Class Dsuppliers

Suppliers rated as Class D for three consecutive years will be restricted in participating innew projects until they are disqualified.Disqualifysuppliers

From the perspective of quality and honesty, the principle of survival of the fittest shouldbe followed according to the requirements of suppliers management.

In 2020, the Company had

suppliers in totalAdd 190 new suppliersEliminate 33 suppliers

2020 Supplier Management andPerformance Evaluation ChartSuppliers ManagementMaterials Management

Define specificationsPut in place proceduresSet standards

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

In 2020, the Company engaged amanagement team from IMB to helpwith its digital transformation. It fullysupported the transformation toadopt the customer needs-based andproduct R&D-oriented strategy viaPLM, OA, ERP and WMS data decision-making platforms. It also tried, via suchdigital transformation, to integrateupstream and downstream ecosystemson the supply chain, strengthen directconnection & communication withour suppliers and customers, enableefficient collaboration, and create awin-win supply chain ecosystem.

By introducing such managementsoftware as PLM and WMS, JPT blendeddigitalization and Intelligentization offull lifecycle of products throughoutits production, operation, R&Dand management, enabled real-time operational data presentation,digital production operation, refinedoperations management and intelligentdecision-making support, and improvedits core competitiveness.

The Company plans to successivelylaunch WMS, BI, CRM, HR, FSM, MES andbank-enterprise interconnection systemin 2021 and complete integrationof such systems in 2022. By linkingthese systems, the Company can fullycomplete its digital transformation andestablish an efficient and intelligentoperational management system.

JPT Headquarters Building

In 2020, theCompany engageda managementteam from IMB tohelp with its digitaltransformation

Engage a management team from IBM to helpwith digital transformation of the Company

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and build

harmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Functional diagram of ve major systems of JPTdigital transformation project

LaunchedsystemsSystems underplanningSystems to beenhancedPhase II systemsRecommendedsystems

财务管理层

ManagementLayerData Platform

BusinessExecutionLayer

ManagementAccountingLayerLogicConversionLayerERP BaseLayer

HR Layer

Collaborative O?ce

BusinessOperationLayer

Strategy Management

System

Dataextraction

Dataanalysis

Datadrilling

Datapresentation

Big dataapplication

Financialmaster data

Supply chainmaster data

BudgetManagement System

Business IntelligentSystem (BI)

Funds SystemMobile Platform

CustomerRelationshipManage

ment(CRM)

SuppliersRelations

hipManage

ment(SRM)

Golden TaxFunds System

ProjectManagement

ProjectManagement

R&DManagement

MaterialsMaintenance

BOMMaintenance

Tax receiptproducing

RequirementManagement Platform

PurchaseRelease Platform

ProcurementManagement Platform

Work OrderRelease Platform

ForecastCoordination

OrderManagement

DeliveryCoordinationReconciliationCoordination

InvoicingCoordination

DeliveryManagement PlatformMarketingManagement Platform

Division/legalperson mapping

relationInventory

Management

BOM ManagementManagement ofGoods in ProcessPlan ManagementCost Management

Fixed AssetsManagement

Ledger ManagementManagementof ReceivablesManagementof Payables

Procurement

ManagementSales ManagementExpenseReimbursementWork OrderManagementProcessManagementBasic Personnel MattersAttendance CheckingTrainingPerformanceCollaborative OceFactoryModelingEquipmentControl

ProductionExecution

Procurement &

WarehousingProcessManagement

Products

Ex-warehouse

Work Order

StorageCustom Clearancefor Importing and

ExportingBatch Calendar

Distribution and

Receiving of

Materials

Distribution and

Receiving ofMaterialsSNManagement

Related partytransactionmaintenance

Maintenance ofvarious operationauthorities

Actual costcalculationProducingand tracingof variousmanagementreports

Integration

Customs Formalities

Introduction of JPT “Create light” ---

match the international leading level

and create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and build

harmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

“Emit light” ---

remain true to original aspirationand bear in mind the mission tobenefit the mankind

JPT insists in serving the customers with high-standard products and theshareholders with high-quality performance growth, developing with qualitybenefits, improving local economic development, promoting the public good,giving back to the society and fulfilling corporate social responsibility.Its staff has increased from 929 in 2019 to 1284 at the end of 2020. The increasesstaff are mainly R&D and production personnel, including 220 new R&D personneland 99 new production personnel. It donated 1 million CNY to regions inflicted bythe Covid-19 pandemic, mainly including Hubei Province, for upgrading PCR labsand relevant virus detection devices in relevant hospitals.

Idea and objective:

Our perf ormance:

Response of SDGs:

Continue on the development path of quality benefits and promotelocal economic developmentProtect rights and interests of shareholders and creditorsPromote the social good and give back to the societyJointly build the community and address concerns of the local people

Introduction of JPT “Create light” ---

match the international leading level

and create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and build

harmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Continue on the development path of qualitybenefits and promote local economic development

Number of employees in parent companyNumber of employees in major subsidiariesTotal number of employeesNumber of employees about to retire whose pensionsshould be borne by parent company and subsidiaries

The year 2020 is the 40th anniversary of thefounding of Shenzhen Special Economic Zone.The staff in Shenzhen have achieved economicdevelopment with exceptionally quick speed andquality benefits in 40 years and a large numberof outstanding entrepreneurs and quality figureshave made great contributions to this miracle.To further encourage more excellententrepreneurs to play the role of pioneersand leaders, Shenzhen Quality City Promotion

Association has organized the contest of “40Quality Builders with Outstanding Achievementsand 40 Outstanding Quality Figure in Shenzhen”.These figures insist on going on a developmentpath with quality benefits and have succeededin helping Shenzhen achieve the leap in speed,benefit and quality.JPT is honored to receive such award asa representative of innovative advancedmanufacturers.

In 2020, the Company steppedup efforts in R&D and businessexpansion and actively promotedlocal employment. Its staff hasincreased from 929 to 1284. Thenew staff are mainly R&D andproduction personnel, including220 new R&D personnel and 99new production personnel.

Huang Zhijia, Chairman of JPT has been nominated as one of the“40 Quality Builders with Outstanding Achievements in Shenzhen”

Award of Quality Builders withOutstanding Achievements inShenzhen

Ma Xingrui, Governor of Guangdong Province and Former PartySecretary of Shenzhen Municipality

1284

Number in previous periodNumber in current period

Number in previous periodNumber in current period

1284

1284

Specialty

Level of education

Total

Total

Managementpersonnel

Graduates ofschools lower thanjunior colleges

Procurementpersonnel

Graduates ofjunior colleges

Productionpersonnel

Bachelor

R&D technician

Master

Marketingpersonnel

Doctor

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

The invested project is completed to laid a solidfoundation for future growthThe Huizhou Industrial Park has been completed and JPT’sproduction capacity has been further released. Phase Iproject of the Huizhou Industrial Park was completed inDecember 2020 with a total building area over 70,000 m2,including a plant area more than 52,000 m2. Since theHuizhou Industrial Park started operations, the productioncapacity bottleneck of the Company has been addressed andthe Company is gaining a production capacity equivalent tofive times the operating revenue in 2020, which will greatlypromote the development of the Company.

Strengthen information disclosure and improvecorporate governance structureThe Company keeps improving its corporate governancestructure and pays high attention to its standard operationsaccording to the requirements in applicable laws,regulations and normative documents such as the CompanyLaw and the Securities Law. On the basis of the Articles ofAssociations, it has built and improved various internalmanagement systems to form a decision-making andoperation system with general meeting of shareholders,board of directors and board of supervisors as the mainbody. Meetings of the general meeting of shareholders,the board of directors and the board of supervisors areconvened, held and voted according to relevant regulations.During the reporting period, the Company has strictlycomplied with its obligation of information disclosure toensure authentic, accurate, timely and complete informationdisclosure to all investors, offering all shareholders equalaccess to information. The Company develops bonusschemes based on the requirements in the dividend policyand attaches high importance to offer reasonable return oninvestment to investors in order to protect legal rights andinterest of all shareholders. The Company protects rightsand interest of creditors via contract signing and paymentsat fixed dates, strengthens timely contact with creditorsvia mutual communications and visits, and fosters anenvironment of fair cooperation and joint development.

Keep oering dividends to shareholdersIn 2020, the Company distributed 1.44 CNY (taxincluded) dividends in cash for every 10 sharesto all shareholders. By December 31, 2020, theCompany has a total number of 92,368,576shares and hence has distributed 13,301,074.94CNY (tax included) dividends in cash in total.The cash dividends distributed by the Companyin 2020 accounted for 30.03% of the net profitsof shareholders of listed companies in theconsolidated financial statements of the Companyin 2020.

Outdoor view of JPT Huizhou Industrial ParkDust-free workshop in JPT Huizhou Industrial Park

Protect rights and interest of shareholders and creditors

In 2020, the Companydistributed

1.44

CNY(tax included)dividends in cash for every10 shares to all shareholders.

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Promote the social good andgive back to the society

Jointly build the community andaddress concerns of the local peopleAdhering to the corporate socialresponsibility of “promotingthe social good and giving backto the society”, the Companyproactively calls for harmoniousinteractions with the society and theenvironment, and insists in fulfillingits social responsibility.In 2020,facing of the severeconditions resulting from theoutbreak of Covid-19 pandemicin China, the Company actively

engaged in prevention and controlagainst the pandemic whileprotecting itself and its staff. Itdonated 1 million CNY to the regionsinflicted by the pandemic, mainlyincluding Hubei Province via theMammoth Foundation in Shenzhen,for upgrading PCR labs and relevantvirus detection devices in relevanthospitals.In critical shortage of pandemicprevention supplies, the Company

tried hard to purchase urgentlyneeded masks, protective suitsand other medical supplies viaits network and donated 240protective suits and 240 medicalN95 masks to the Fifth Hospital inWuhan, the Tongji Hospital affiliatedto Tongji Medical College ofHuazhong University of Science andTechnology and the Union Hospitalaffiliated to Tongji Medical Collegeof Huazhong University of Scienceand Technology respectively.

On May 12, the Company donated 200,000CNY to the Shenzhen Longhua DistrictCharity to help and aid in pairs NongpingVillage in Simeng Township, LinwangVillage and Pola Village in Aidong Town,Donglan County, Guangxi Province.In 2020, it donated 50,000 CNY to theEducation Development Foundation,Huazhong University of Science andTechnology for setting up photonics openclass program in the School of Opticaland Electronic Information, HuazhongUniversity of Science and Technology.

The Company actively promotes the local recruitment policy andgives priority to the local employment needs at its sites of operations.Since the Huizhou Industrial Park is located at a remote area withinconvenient transportation, the Company has offered activeassistance to local government to launch bus routes, which not onlyremoves the difficulty of JPT staff in traveling, but also enhancestransportation accessibility of the local residents.The Company proactively communicates with the LonghuaDistrict Government, where its headquarter seated, responds tothe requirements of local government, participates in building thecommunity and receives several awards from the Longhua DistrictGovernment, the Longhua District Federation of Trade Unions andthe Association of Industry and Commerce.

When the nation was preventing and controlling the pandemic,the Company organized to send pandemic prevention suppliesto the inflicted regions.

The Company donated 100,000 CNY to Shenzhen Yuyan DevelopmentCenter of Care for the Disabled to help local disabled people find jobs andstart business.

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

“Gather light” ---

put people first and buildharmonious culture

“Respect individuals and pursue excellence”. JPT practically protects rights andinterest of its staff, creates a warm and comfortable working environment whereeveryone is respected and builds a sound talent development and cultivationsystem and a promotion pipeline to ensure the growth of the staff.The Company’s share incentive plan has granted equities for the first time to 153staff in total, accounting for 17.37% of the total number of staff in the Company. In2020, the Company organized 13 sessions of safety education and trainings for newemployees and trained a total number of 710 staff. It also organized 15 sessions oftrainings on special operations, emergency team building and management safetyawareness raising and trained a total number of 552 staff.

Idea and objective:

Our perf ormance:

Response of SDGs:

Practically protect rights and interest of its staffEffectively arouse enthusiasm of the staffTeam management and talent developmentPrepare to establish JPT Growth College and improve skills of core talentsMaintain a balance between life and workFully ensure safe productionEnsure product safety

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

The Company pays high attention to protecting rightsand interest of its staff and has established a completeset of systems to safeguard rights and interest of itsstaff, including the human resources system involvingstaff rest & holidays, compensation & benefits andoccupational physical examination for staff in positionswith occupational hazards and other managementsystems in terms of staff safety in office area, officeequipment safety and office environment safety.

The Company recruits and uses the staff in strictaccordance with applicable laws and regulations, suchas the Labor Law of the People's Republic of China andthe Labor Contract Law of the People's Republic of China,offers competitive compensations in the industry for itsstaff and ensures the staff are reasonably remunerated.

Panoramic rendering of the new plant area in Huizhou

Protect occupational health and safety of the sta

A Test and Evaluation of OccupationalHazard Factors in Workplace is preparedevery year for the operation site.Currently, the density or concentrationof occupational hazard factors ofthe Company meets the nationaloccupational hygiene standards

Facilities to prevent against

occupational hazards have

been planned

Product distribution is reasonable andin line with the principle of separationof harmful and harmless operationsSuch facilities as equipment, tools andapparatus meet the requirements of protectingphysical and mental health of the laborers

PPEs are issued to positions with dangersand relevant staff are supervised to properlywear such PPEs

Occupational health examinations areorganized regularly to the staff in specialpositions

Practically protect rights and interest of its staff

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and build

harmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

A system of differentiated salaries has beenput in place for the staff in different positionsof the Company. In addition to the regularsalary, housing and transportation allowance,there are also other bonuses including theyear-end bonus.For core business staff and technicians,several methods are adopted such asundertaking retaining and equity incentiveto improve the cohesion of the staff. InFebruary 2020, the Company implementedits equity incentive plan and granted equitiesfor the first time to core business andtechnical staff and other staff considered

by the Board of Directors as requiring suchincentives. The total number receiving suchincentive was 153, accounting for 17.37% ofthe total number of the staff in the Company.After the plan was implemented, the teamstability was improved and enthusiasm of themanagement team was effectively aroused.Core technicians of the Company hold

43.67% of the capital contributions of

Tongju Consulting --- the staff shareholdingplatform. By transferring equities to coretechnicians, the Company can retain talents,promote its long-term stable developmentand cut attrition rate of core technicians to 0.

In team management and talentdevelopment, the Companyadvocates the idea of “respectingindividuals and pursuingexcellence”. Equal relationships aremaintained between the leadersand the staff and it is ensured thatthe staff are respected and feelcomfortable in the Company.

In 2020, the Company performeda comprehensive review of thetalents and the competencymodel, tailored staff growthplans based on the competencyrequirements of key positionsand core talents as well asfuture business developmentneeds, jointly built a growth andlearning-oriented organizationand implemented the corporateculture.

The Company respects individuals,calls for professionalism andencourages cross-sector working.In addition to expertise andmanagement pipelines for careerdevelopment, the Companyalso encourages cross-sectorworking of the managementand technical talents in salespositions to become technical ormanagement-based marketingtalents.

Management meeting of the Company

Dual promotion pipeline for talent development

General Manager

DirectorManagerSupervisorCommissioner

Assistant

Expert engineerSta engineerSenior engineerIntermediate engineerJunior engineerAssistance engineer

Management pipelineProfessional pipelineSenior managementMiddle-level managementFront-line management

Chief expertSenior expert

Expert

Core staFront-line sta

Effectively arouse enthusiasm of the staffTeam management and talent development

Introduction of JPT “Create light” ---

match the international leading level

and create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

In 2024, the Company will focuson creating the atmosphere offull-participation and game-based trainings with the themeof “platform” to encourage thestaff to actively participate inteaching research and trainings,arouse learning enthusiasm andinnovation vigor of the staffwith reasonable investment ofresources in order to provideinexhaustible creative ideasfor the development of theCompany.

Build a growth- and learning-oriented organization

Development plan of the Growth College

In 2021, the Company willfocus on building the teamof managers, establishing amanagement college andcreating a case library and theculture of learning and sharingwith the theme of “systembuilding”.

In 2022 – 2023, the Company willfocus on building the marketingteam and the political commissarteam with the theme of“improving skills of core talents”to select excellent talents tobecome core strengthen of theorganization via case teachingand action learning, establishthe JPT MBA College and createa benchmarking culture and aculture of political commissars assecond-in-command.

2021

2022

-2023

2024

Prepare to establish JPT Growth Collegeand improve skills of core talents

The Company is preparing to establish the JPT Growth Collegeand offer a mechanism and the organizational guaranteefor talent development. It divides the staff into three types:

new staff, in-service staff and management staff, preparestraining textbooks and builds a team of lecturers based ondifferent requirements. At present, 30 – 40 courses have beendeveloped. JPT is planning to gradually build the GrowthCollege into a talent training college with complete systemsand actual effects and a college that advances with the timesand fits with the strategic planning of the Company.

Introduction of JPT “Create light” ---

match the international leading level

and create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Staff basketball matchFashion show of female staff

JPT cares for career success as well asphysical & mental health and familywellbeing of the staff. It helps thestaff improve their living quality andoffers them a sense of belonging andpride by constantly improving thestaff care mechanism.

The Company builds book bars and gymsin both the Shenzhen Headquarter andthe plant area in Huizhou where variousbooks and personal fitness trainers areoffered to the staff free of charge in orderto help them relax after work.Additionally, badminton, table tennis andbasketball clubs have been established

inside the Company to hold regulartrainings and matches in order to improvephysical and mental health of the staff.Various departments of the Companyhold irregular team building activitiessuch as travelling, dinner parties,gatherings and shows to build good teamrelationship.

Team building activities of the Company

Work easily and live happily

Staff exercising in the gym after work

The Company organizes blind dates forsingle staff; encourages the staff to findthe other halves in the Company for jointdevelopment. Now there is a dozen ofcouples in the Company. It coordinatesto help the children of the staff to findschools to study.

In addition to the social insurance, theCompany offers consolation money of10,000 CNY to 40,000 to subsidize thestaff hospitalized due to illness.In 2020, the Company offered twosubsidies of 20,000 CNY in total to thestaff in difficulty.

Aid the sta in diculty and address their worries

A corner of a book bar for the staff①②

③④

Maintain a balance between life and work

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and build

harmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Fully ensure safe productionEnsure product safety

Implement safe production

Safety is an essential part of productionmanagement. The Company performsrisk identification and evaluation forevery process, position, operation site,equipment, facility and project beforework and takes corresponding measuresto prevent risks.

The Company attaches high importanceto product safety and has put in placeclear indicators for control of supplychain and manufacturing, productionevaluation, mutual and patrol inspectionof various work positions to ensurethat the product quality meets relevantrequirements.The products of the Company haveobtained CE (Conformite Eeropeenne)and FDA (Food and Drug Administration)certifications to ensure safe used byusers. Moreover, the Company hasobtained GB/T 19001-2016 idt ISO9001:2015 and GB/T24001-2016/IS014001: 2015 quality certificates.

The Company has established the EHS Department responsiblefor safe production, come up with detailed requirements of EHSmanagement and control in terms of environmental protection,safety, fire control, occupational health and system and built aninternal EHS operation evaluation system.The EHS Department is led by the General Manager and specialpersons are assigned for its management. Each departmenthas a special safe committee responsible for implementing thesafety measures defined in the safety regulations planned andimplemented by the EHS Department.In 2020, 1.43 million CNY was invested in the safety system. TheCompany has passed the occupational hazard test and its entireenvironment meets various national standards and requirements.

Fully implement safety measures via responsibility system

Safe production training organized by the CompanyOrientation safety training for new staff

In 2020, the Company continued to organizeroutine safety trainings and educationin terms of safe production regulations,operating procedures, safe production lawsand regulations, necessary knowledge ofequipment and positions with great dangers,safe production accident cases and emergencyrescue and salvage.In 2020, 13 sessions of three-level safetyeducation and trainings were offered to a totalnumber of 710 new staff. 15 sessions of trainingson special operations, emergency team buildingand management safety awareness raising wereoffered to a total number of 552 staff.

Strengthen safety trainings

Performance: Zero safetyaccident in 2020.

Introduction of JPT “Create light” ---

match the international leading level

and create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

“Give light” ---empower with wisdom and share agreen futureJPT is devoted to giving play to the advantages of advanced manufacturing inthe laser industry, fulfilling its mission of “leading optical technologies for people”,eliminating out-of-date traditional production capacity and helping partners cuttingenergy consumption via advanced equipment and components it has developedand consciously blending into the national green manufacturing support system.During production operation, it actively implements transformation to cut energyconsumption and emission and total cost management, tries hard to cut resourcesconsumption and promotes recycling of resources.Estimated based on the annual shipping volume of 15 million watts, customers cansave power of 135 million kWh (including power saved by water chillers) by usingJPT products. In 2020, the Company saved the cost of 70 million CNY via total costmanagement and full process cost control. The new process cooling system & theheat recovery project put into operation in the Huizhou plant area are expected tosave power of 740,000 kWh every year.

Idea and objective:

Our perf ormance:

Response of SDGs:

Empower traditional industry with advanced manufacturingTotal cost management and full process cost controlConserve energy, cut emissions and protect the environment

Introduction of JPT “Create light” ---

match the international leading level

and create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and build

harmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

The laser industry features energyconservation, low consumption andenvironmental protection. Chinais promoting its industry sector totransform from an energy-intensiveindustry to a green and low-carbonindustry in terms of industrial structure,energy consumption, production process,utilization of resources and supply ofproducts, strengthening the supportingrole of the green manufacturing systemand fundamentally reducing emissionand carbon. The laser industry willbecome a major support for such system.Firstly, the fiber laser --- a major productof JPT, is a third-generation laser whoseefficiency in energy conversion is threetimes that of the first-generation andsecond-generation gas and DPSS lasers.

Secondly, lasers can save a large amountof energy consumption by replacingthe traditional marking machines andindustrial welding machines. Taking carsas example, a car can be 56 kg lighterif laser welding is used, which means itcan save 28L fuels every 10,000 km everyyear. Then 1.5 billion cars in the world cansave 30 million tons of fuels, equivalentto 80 million carbon emission.Thirdly, the fiber laser, when appliedin the new energy PV filed, can greatlyimprove power generation efficiency ofPV solar energy. According to calculations,since there are 250 Gw PV installationsin the world in 2020 and all use theprocessing technique of laser grooving,additionally 600 million kWh power willbe generated.

Fourthly, the laser remanufacturingtechnology can save a large amount ofmaterials and energy by regeneratingoriginally scrapped engines with the helpof the laser technology.JPT has been devoted to improvinglaser efficiency. Its CW efficiency hasbeen increased from 33% to 40%. Whencalculated based on the annual shippingvolume of 15 million watt (calculated asper 20 hours a day and 300 days a year),customers can save power of 135 millionkWh (including power saved by waterchillers) by using JPT products.

Energy consumption can be significantly reduced by replacingtraditional electric welding with laser welding.

Empower traditional industry with advanced manufacturing

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and build

harmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

All the staff take the initiative toparticipate in cost management andimprovement, break down the costcontrol objective at all levels and makeefforts to cut resources consumptionduring production in order to cut costand conserve resources. In 2020, the

Company saved a cost of 70 millionCNY via total cost management and fullprocess cost control, where the LaserDivision saved 52 million CNY and theIntelligent Equipment Division saved 18million CNY.

All the staff participate actively in costmanagement and improvement

CompanyDepartmentProcess/link

Each sta

System

Affected by the pandemic, the pricesof electronic components fluctuatedgreatly in 2020. Some foreign brandshad higher prices and longer leadtime. The Laser Division paid closeattention to the changes in suchprices, optimized the procurementchannels to procedure synchronously

with agents and merchants andreduced the procurement costsignificantly via such cost controlmeasures of introduce competition--- reduced cost via design ---replaced with compatible products,which helped cut the cost and ensurethe delivery term.

Case:

Product linePulsedCWDPSSProduct linePulsedCWDPSSNote: the statistics are made based on all warehoused materials andcalculated based on comparable repeat purchase requirements

Total procurement amount in 2020 (Unit: 10,000 CNY)

Procurement cost reduction rate

15,016

10.16%

20.16%

19.24%

20,7564,824

Total cost management and full process cost control

Total costmanagement

All the staffparticipate activelyin cost managementand improvement

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Conserve energy, cut emissions andprotect the environment

In 2020, the Company invested 7.95 millionCNY to launch the process cooling system& the heat recovery project as well as theventilation system in the production linesin the Huizhou plant area. Such systemshelped to cut energy consumption,improve the working environment andenable recycling of resources.The system is located in the JPT plant areain Huizhou and its main parts are locatedat the top of and inside towers B and C.

The energy conservation efficiency ofthe cooling system and the heat recoverysystem has great effect on reducing directmanufacturing cost and indirect operatingcost because such systems can directlyreduce power consumption causedby production tests and aging and theheat recovered can be used to heat thedomestic water and the production lines.

Process cooling and heat recovery system

Economic benets:

Compared with using the laserchillers, 740,000 kWh power can besaved every year.The system is installed on therooftop and 500 m2 plant area issaved if it is calculated based on thefact that 350 laser chillers are used.As to the supporting electricutilities, the cost of the laser chillersis about 1 million CNY higher thanthe cost of this plan.

Social benets:

24-hour hot water can besupplied in the park to improvethe wellbeing in life of the staff.

Investment in energy conservationand emission reduction programs

million CNY

All construction projects have passed theenvironmental impact assessment withoutenvironmental pollutionThe Company doesn’t fall into the scope of industries withheavy pollution and its production and operation activitiesdon’t cause pollution to the environment. The Companystrictly complies with the national laws and regulationsconcerning environmental protection during production andoperations. It has no pollution accident or punishment dueto violations of applicable laws and regulations concerningenvironmental protection during the reporting period.All construction projects of the Company have obtained theenvironmental impact assessment qualifications granted bythe environmental protection authority.

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Responsibilitymanagement

As a national high-tech enterprise, JPT keeps adding new contents to theconnotations of its social responsibility and incorporates the idea of sustainabledevelopment into daily activities. It operates and manages to enable the harmonyand balance between improving economic performance and fulfilling social andenvironmental responsibility in order to achieve balanced development.JPT has established a complete responsibility management system to devotedto fulfilling its economic, environmental, public, partner, customer and staffresponsibilities and effectively identify and actively respond to appeals ofstakeholders.

Idea and objective:

Our perf ormance:

Response of SDGs:

Social responsibility modelIdentification and management of key social responsibility issuesResponsibility strategySocial responsibility organization systemResponsibility communication

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

In the context the macro environment of sustainabledevelopment and according to its own development plans,the Company identifies and determines the priority of socialresponsibility issues and defines its key social responsibility

issues for 2020 by following the principles of substantiality,completeness and participation of stakeholders and takinginto account the degree of influence on the importance ofoperations & development and on stakeholders.

Analysis of social responsibilityguidelinesUN Sustainable Development GoalsSocial responsibility surveysAnalysis of policies and publicopinionsRegular communication meetingsof governmentsExpert opinionsWorkers congress

1. Lawful and honest operation

2. Promote innovative transformation

3. Improve operating benefits

4. Mitigate operational risks

5. Accurate poverty alleviation

6. Implement safe production

7. Offer premium services

8. Set standards for supply chain

management

9. Promote the public good

10. Actively blend into the community

11. Enhance environmental management

12. Aid the staff in difficulty

13. Protect rights and interest of staff

14. Pay attention to occupational health

15. Promote staff development

16. Enrich the lives of staff

Identify issuesDetermine priority of issues

Leadership reviewReview by various business unitsReview by responsible companyCollaboration of externalexpertsCollection of comments fromstaff

Social responsibility modelIdentification and management of key social responsibility issues

Governmental responsibility

Staff responsibility

Safe productionCommunity participation

Customer responsibilityShareholder responsibilityPartner responsibility

Green operationsGreen productionGreen energyGreen measures

Responsibility strategyResponsibility governance

Responsibility integrationResponsibility performanceResponsibility communication

Responsibility capacity

Socialperformance

Economicperformance

Responsibilitymanagement

Environmental

performance

Strategic importance andinfluence on company businessof the issuesSocial trends and importance tostakeholders of the issues

Keep communicating withstakeholdersSummarize social responsibilityissuesUpdate social responsibility planSocial responsibility andindustrial development trendsCompany developmentstrategy planningFeedback from stakeholdersGovernmental requirementsIndustrial standardsSources of issues:List of material issues:

Review issuesImprove continuously

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Customerresponsibility

Partnerresponsibility

Publicresponsibility

Environmentalresponsibility

Economicresponsibility

Responsibility strategySocial responsibility organization system

JPT is devoted to fulfilling its economic, environmental,public, partner, customer and staff responsibilities.

The Company keeps optimizing its socialresponsibility organizational structure,embeds its social responsibility deep intoits enterprise strategy and daily operations,

continuously engages in social responsibilitymanagement practice and strives to builditself into a world-leading solution providerof lasers and intelligent equipment.Develop social responsibility development strategyand medium- & long-term development plansReview and decide on major issues related tocorporate social responsibility

Socialresponsibilityleading group

Socialresponsibilityleading groupoce

Socialresponsibilitycontact

Responsibility

strategy

Staffresponsibility

Coordinate routine work of social responsibilityPromote social responsibility system and capacitybuildingLead in preparing social responsibility plans andannual social responsibility reports of the Company

Promote the fulfillment of its social responsibilityby the Company

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

ResponsibilitycommunicationThe Company pays high attentionto communication with andparticipation of stakeholders, keepsenhancing the transparency of itsoperations, improves multi-leveland comprehensive communicationchannels with such stakeholdersas governments, customers, staff,partners, the community and theenvironment, effectively identifies andresponds to expectations and appealsof stakeholders, and makes efforts toestablish harmonious relationshipswith stakeholders.

StakeholdersWays of communicationExpectations and appealsGovernment and regulators

Exchanges of official documentsInformation disclosurePolicy implementationDaily report and communicationInvestigations and exchanges

Serve the national strategy, focus on bottleneck technology,implement regulatory policies, properly disclose informationand assist in local economic development

customers

Customer demand surveyHotlineService networkRegular visitsCustomer feedback and handling

Ensure product safetyProvide convenient serviceProtect customer information safety

Partners

Exchange and visitsIndustry forumsTop level exchangesSeminars

Improve project qualityProtect intellectual property rightsCooperate for mutual winExchange and share experienceJointly promote industrial developmentSta

Satisfaction surveyCongress of workers and staffPanel discussionsStaff trainings

Sound guarantee of rights and interestPromising career development prospectComfortable working environmentOccupational health and safetyCommunity

Offer aids to fight against the pandemicTargeted poverty alleviationPublic benefit activities

Support regional economic developmentEngage in the course of charityJointly build a harmonious societyEnvironment

Environmental policyGreen information disclosureGreen operations

Promote green operations and productionSave resources and energyCall for green and low-carbon lifestyle

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

About This Report

5151

This is the first annual social responsibilityreport published by Shenzhen JPT Opto-electronics Co., Ltd. In the principles ofobjectivity, normativity, transparencyand comprehensiveness, the report offersdetails of responsibility management ofthe Company in 2020 and the practicesin fulfilling its economic, staff, customer,environmental, partner and publicresponsibilities.

Reliability assurance of the report

The Company promises that the contentsin this report are free from any falserecord, misrepresentation or majoromission and is responsible for theauthenticity, accuracy and completenessof its contents.

Time range of the report

The period of statistics isfrom January 1 to December 31, 2020. Insome parts, data beyond such period isincluded.

Reporting period

The annual report is published betweenJune and August every year.

Description of data in the report

The data used in the report comes frominternal documents of the Companyand data from its information statisticssystem. Unless otherwise specified,currencies and amounts mentioned inthis report are measured in the unit ofCNY.

Reference standards

Social Responsibility Report PreparationGuidelines (GB/T 36001-2015) of ChineseNational Standards, GRI Standards ofthe Global Stability Standards Board,Social Responsibility Report PreparationGuidelines (CASS-CSR4.0) of ChineseAcademy of Social Sciences and UNSustainable Development Goals (SDGs).

Description of titles in the report

In this report, Shenzhen JPT Opto-electronics Co., Ltd. is referred to as “JPT”,“the Company” or “we”.Access to the reportThe report is available in both paper andelectronic versions. If you need the reportin paper version, please send an email towjk@jptoe.com or call 0755-29528181.The electronic version of this report canbe directly downloaded by visiting the“Corporate Responsibility” section of theofficial website of Shenzhen JPT Opto-electronics Co., Ltd. (http://www.jptoe.com/). To reduce use of papers, it isrecommended to use electronic versions.Thank you very much!Detailed address: Room 1201, Tower A,Kemron Science Park, No. 8-1, GuanshengNo. 5 Road, Luhu Community, GuanhuStreet, Longhua District, Shenzhen

Appendix

Introduction of JPT “Create light” ---

match the international leading level

and create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

5252

Chapters of reportGRI standardsIntroduction of JPT

Leader's oration102-14/102-15/103-1/103-2/103-3Company overview102-1/102-2/102-3/102-4/102-5/102-6/102-16/102-18/102-22/102-23/102-26CSR performance diagram 2020102-7/102-8/102-29/102-31/201-1/301-1/301-3/302-4/302-5/405-1/415-1

“Create light” ---match the international leadinglevel and create the “light of China”

Stick to the industrial positioning of “laser+” and replace imported products withdomestically made ones

102-2/201-1MOPA lasers have first mover advantage and strong product competitiveness102-2/201-1Major customers of optical and laser equipment have been developed and relevantrevenue doubled

102-6/201-1Expand global customers and improve service quality102-6/201-1/302-5Acquire to hold equity interest and consolidate industrial layout102-10/102-45

“Pursue light” ---keep investing and drivedevelopment with innovation

Build four major technology R&D platforms and create “hidden global champions”102-2Keep increasing R&D investment and increase the number of R&D staff103-2/203-2/401-1/405-1Give play to the advantage of domestic and foreign “double-center” R&D102-4/102-6/405-1Make breakthroughs in market segments with technical progress102-6/206-1Patent reserves contain core values206-1Respect and protect intellectual property rights and promote development of the industry102-16/206-1“Integrate light” ---grow with industrial giants viacooperation and mutual win

Offer closer service and research and develop new products based on key customer needs102-2/418-1“Global strategy” helps JPT to enter the supply chains of major customers102-2/102-6Protect rights and interest of suppliers, customers and consumers102-9/308-2/414-1/414-2Engage a management team from IBM to help digital transformation of the Company103-3/308-2

Index

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Index

Chapters of reportGRI standards

“Emit light” ---stay true to original aspiration andbear in mind the mission to benetthe mankind

Continue on the development path of quality benefits and promote local economicdevelopment

102-16/203-2/413-1Protect rights and interest of shareholders and creditors201-1Promote the social good and give back to the society413-1/413-2Jointly build the community and address concerns of the local people413-1/413-2

“Gather light” ---put people rst and buildharmonious culture

Practically protect rights and interest of its staff401-2/401-3Effectively arouse enthusiasm of the staff102-35/102-36/404-3Team management and talent development401-2Prepare to establish the JPT Growth College and improve skills of core talents401-2Maintain a balance between life and work401-2Fully ensure safe production401-2/404-1/404-2Ensure product safety416-1“Give light” ---empower with wisdom and sharea green future

Empower the traditional industry with advanced manufacturing302-4Total cost management and full process cost control201-1Conserve energy, cut emissions and protect the environment302-1/302-3/302-4/303-1/303-3/305-1Responsibility management

102-16/102-18/102-19/102-21/102-27/102-29/102-31/102-40/102-42/

102-43/102-44/102-46/102-47/103-1/103-2Appendix

About This Report102-50/102-51/102-52/102-53/102-54Index102-55Feedback Form102-53

Introduction of JPT “Create light” ---

match the international leading leveland create the “light of China”

“Pursue light” ---keep investing and drivedevelopment with innovation

“Integrate light” ---grow with industrial giants viacooperation and mutual win

“Emit light” ---remain true to original aspiration and bearin mind the mission to benefit the mankind

“Gather light” ---put people first and buildharmonious culture

“Give light” ---empower with wisdomand share a green future

Responsibilitymanagement

Feedback formDear readers,Greetings! Thank you for reading the Social Responsibility Report 2020of Shenzhen JPT Opto-electronics Co., Ltd. We highly value and lookforward to your feedback on JPT social responsibility management,practices and the report. Your comments and advices are importantbasis for us to continuously promote our social responsibilitymanagement and practices. Looking forward to your responses!Multiple-choice questions (tick √ at appropriate positions)

1. Which type of stakeholder are you?

〇 Government officials 〇Regulators 〇Shareholders and investors 〇Staff 〇Customers〇Suppliers and partners 〇Residents in the community 〇CSR professionals 〇Peer enterprises 〇Others

2. What is your overall comment on this report?

〇Great 〇Relativelygood 〇So-so 〇Relativelypoor 〇Poor

3. How do you think is the quality of the social responsibility

information disclosed in this report?

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4. Do you think the information contained in this report is

comprehensive?

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5. How do you think of the layout design of this report?

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6. Do you think the information contained in this report is

readable?〇High 〇Relativelyhigh 〇So-so 〇Relativelylow 〇Low

7. Please write down your comments and advices on JPT

social responsibility and this report:

Shenzhen JPT Opto-electronics Co., Ltd.

Scan QR CodePlease give us your opinions andsuggestionsYour suggestions drive us toachieve continuous development

1-12F, Building A, Kemron Science and Technology Park, Guanlan Hi-techIndustrial Area, Longhua District, Shenzhen, China 518110

Shenzhen JPT Opto-electronics Co., Ltd.


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