2021 Environmental, Social and Governance Report
About This ReportThis report is the rst Environmental, Social and Governance (hereinafter referred to as “ESG”) Report (hereinafter referredto as “ESG Report” or “the Report”) released by Shenzhen Transsion Holdings Co., Ltd. (hereinafter referred to as “TranssionHoldings”, “Transsion”, “we” or “the Company”). It mainly discloses Transsion Holdings’ ESG ideas, important progress, andperformance in 2021.Basis of PreparationThis Report is prepared mainly according to the GRI Sustainable Development Report Standards (GRI Standards) issued by theGlobal Reporting Initiative (hereinafter referred to as “GRI”) and the relevant regulations, guidelines and other requirements inChina.Scope of This ReportUnless otherwise specied, this Report covers the period from January 1, 2021 to December 31, 2021 (“this year”, the “ReportingPeriod”) and covers Transsion Holdings and its subsidiaries and branches.Unless otherwise specied, the amounts involved in this Report are denominated in RMB.Data Source
All the data used in this Report is from the Company’s o?cial documents, relevant reports and statistical reports.Availability of This Report
This Report is prepared in Chinese and English. If there is any difference between the versions, the Chinese version shallprevail.The electronic version of the Report is available and downloaded from the website of SSE (www.sse.com.cn) and theCompany’s website (www.transsion.com).FeedbackShould you have any questions or feedback on this Report and contents hereof, please contact us by:
Address: 1702-1703, 17/F (natural oor 15/F), Desay Building, No.9789 Shennan Road, Yuehai Sub-district, Nanshan District,Shenzhen, ChinaTel.: 0755-33979932Fax: 0755-33979211Email: investor@transsion.com
About Transsion
Company proleTranssion Holdings is committed to becoming the most popularprovider of smart devices and mobile services for consumers inglobal emerging markets. The Company is best known for its high-quality multi-brand smart devices. Mobile phones are its coreproducts, while it also offers mobile Internet services based on aself-developed operating system and traffic entrance. Transsion’sbrand portfolio comprises leading mobile phone brands in emergingmarkets, including TECNO, itel and Infinix, as well as Carlcare forafter-sales services, oriamo for smart accessories, and Syinix forhome appliances.The Company's products have entered more than70 countries and regions around the world.Transsion Holdings was listed on the SSE Star Market in 2019 andhas been included in the MSCI China A Index, MSCI China A OnshoreIndex, MSCI China All Shares Indexes, CSI STAR Entrepreneurship50 Index, SSE STAR 50 Index, etc. In 2021, Transsion Holdings wonvarious honors including “China Top 500 Private Enterprises”, “ChinaTop 500 Private Manufacturing Enterprises”, “Fortune China 500”,“China Manufacturing Champion Enterprise”, “SSE Star Market Top50”, and “Guangdong Top 500 Manufacturing Enterprises”.
Value system
Together we can PhilosophyVisionMissionCore Values
To become the most popular provider of smart devices and mobile services for consumers in global
emerging markets
[Customers]
are both the starting point and the end point for all
work of Transsioners.
[Openness]
Staying open connects us to the future and its
possibilities.
[Sharing]
invites every “I” to become “We”.
[Respect]denes how we treat each other and our di?erences.[Innovation]is essential to achieving breakthroughs on di?erentlevels, both personal and organizational.[Bottom line]We always show compassion, even if it puts us at adisadvantage.
To improve the lives of as many people as possible through technology and innovation
Continuous pursuit of low-carbon developmentWe are committed to the achievement of China’s “dual carbon” goals by undertaking our environmental responsibility andpromoting low carbon sustainable development. We take the initiative to phase out outdated production equipment and process,improve lean production management, use resources more e?ciently, and strengthen our green and low-carbon operation. Weinfuse the green and environmentally-friendly concept into the full life circle of products covering R&D, design, production, usageand recycling by developing green and environmentally-friendly products, reducing the use of packaging materials, and carryingout recycling of electronic waste to avoid its pollution on the environment. We advocate green production and o?ce and work toimprove daily production and operation stepwise, and pursue low-carbon sustainable development.Looking ahead, Transsion is well poised to uphold its mission “To improve the lives of as many people as possible throughtechnology and innovation”, solidly fulll social responsibilities and further sustainable development by committing to a long-termvision, focusing on current priorities, pursuing technology-driven strategy and embracing changes.
Invite every “I” to become “We”
Actively take part in charity programs and give back to the society
As talents are the mainstay for corporate development, we regardemployees as its cornerstone for sustainable development. We valueand respect every employee among more than 16,000 employees
We advocate the corporate concept of “Together we can”, in the hope of sharing our warm-hearted approach with more of ouremployees. Starting its business in Africa, Transsion has been pursuing harmony and win-win results with local communitiesand working to deliver more social value for emerging markets. Since June 2020, Transsion has teamed up with the UnitedNations High Commissioner for Refugees (UNHCR) to support its global education program, Educate A Child (EAC), in a bid tohelp improve education conditions and give African refugee children access to education, thus contributing to education equity.We make active response to national appeals, contribute to rural revitalization, take part in charity programs and constantly giveback to the society.
Message from Chairman
To improve the lives of as manypeople as possible throughtechnology and innovation
2021 kicked off the 14th Five-Year Plan period and was also theninth year since the founding of Transsion Holdings. Thanks to thetrust and support from all stakeholders, we achieved an admirableperformance once again and won unprecedented development.As the listed company on the STAR Market of the Shanghai StockExchange, we are convinced of the importance of social responsibilityto enterprise sustainable development and a new height representinga fresh start as well as a greater responsibility for development. Wewill endeavor to promote the enterprise to play a more signicant rolein environmental, social and governance aspects.
We have been putting consumers in emerging markets rst by gettingdown to meeting their needs and fully leveraging its strengths inlocal technological innovation in an e?ort to provide them with betterproducts and experience, and integrate consumers in Africa and otheremerging markets into a connected world as much as possible, thusshortening the distance between them and the world, while harnessingtheir potential to explore the world.We are committed to product and reaserch and development(R&D) innovation and take technology reserves seriously, workingto make cutting-edge products available to the public. We persistin technological innovation to tailor-make heart-warming products,and launch innovation and service meeting the demands: in light ofdemands and characteristics of consumers in Africa and other globalemerging markets, we have developed personalized applicationtechnologies such as photography technology designed for dark skin,capture technology designed for night photography, facial recognitionunlocking feature in dark places, inexpensive technology of high-powered quick charger, ultra-long standby time, current controltechnology for environmental temperature detection and USB port withsweat-resistant function. We focus on barrier-free design of productsand developed an AI-powered text-to-speech app for the elderly orvisually disabled people. We prioritize quality, aiming to provide everyconsumer with safe and reliable products by optimizing our qualitymanagement system, bringing about a warm product connotation andmaking a better life through technology and innovation.
around the world, keenly seek top-notch talents, work on creating a fair and equal work environment and put a premium onfeedback from employees. We aim to invite every talent to join us and make achievements along with Transsion by providinga diversied talent development system, respecting di?erent cultural backgrounds, and fostering a free, equal and harmoniouswork environment.
As of December 31, 2021,Transsion employed16,095
people worldwide
George ZhuChairman of the Company
2021 ESG PerformanceResponsibilities for 2021
Honors for 2021
Operating revenueNet prot attributable to shareholders of the listed companyNet cash ow from operating activitiesTaxes paid
RMB millionRMB millionRMB millionRMB million
Total greenhouse gas (GHG) emissions (including Scope 1and Scope 2)GHG emission intensityTotal water consumptionOverall energy consumptionOverall energy consumption intensity
Total number of employeesTotal training attendanceTotal employee training durationTotal investment in employee trainingTotal investment inoccupational health and safety measures
Indicator
tCO
e
tCO
e/RMB billion revenuetontcetce/RMB billion revenue
PersonPerson-timeHourRMB millionRMB million
UnitEconomic indicators
All-China Federation of Industry and Commerce
China Top 500 Private Enterprises
Ministry of Industry and Information Technology,
China Federation of Industrial EconomicsChina Manufacturing Champion EnterpriseIndicatorUnit
IndicatorUnit
Social indicators
Environmental indicators
Fortune ChinaFortune China 500
China Media Group – Shanghai Station
SSE Star Market Top 50
Guangdong Manufacturers Association, GuangdongProvincial Development and Reform CommissionGuangdong Top 500 Manufacturing Enterprises
49,411.903,909.234,038.581,429.51
14,287.3
2.89
108,562.33,133.1
0.63
16,09543,032637,312
11.18
14.49
Data
Data
Data
All-China Federation of Industry and Commerce
China Top 500 Private Manufacturing Enterprises
ResponsibilityTopic
Educate A Child
On June 18, 2021, UNHCR released its annual GlobalTrends Report. By the end of 2020, 82.4 million peoplewere forcibly displaced globally, of whom 26.4 million wererefugees, and about 5 million school-aged refugee childrenwere out of school. In Africa, where there are large numbersof refugees forced to ee their hometowns due to conict,violence and persecution, there is a huge gap in basiceducation for African refugee children.
Education is a basic human right that is particularly precious for refugee childrenwho have been displaced by disasters. Education protects refugee children fromviolence, exploitation, child marriage, sexual and gender-based violence andprovides them with knowledge and skills. It also inspires refugee children to learnabout themselves and the world, strengthens their condence in independence,and motivates them to strive to rebuild their lives and communities. Since 2012,the UNHCR has been actively promoting the EAC program globally to providerefugee children with high-quality basic education. Transsion actively improvesthe educational conditions of refugee children in Africa through the EAC program,and strives to create an equal educational opportunity for them and build a morehopeful future where they can realize their dreams.In June 2020, with its mobile phone brand TECNO, Transsion supported theEAC program of the UNHCR. The rst phase of this cooperative project betweenTranssion and the UNHCR has been implemented in Kenya, Africa. Through thiscooperation, Transsion has helped more than 12,000 children from the RefugeeCamp in Kenya to improve their educational conditions, and provide them withteaching materials and textbooks.In June 2021, Transsion announced that it would partner with the UNHCR againto support the UNHCR’s EAC program with its mobile phone brand TECNO. Forthe full year of 2021, Transsion helped over 10,000 refugee children from Kenyaand Uganda.
The pictures are from the UNHCR
The pictures are from the UNHCR
Esther Nyakong is an 18-year-old South Sudanese refugee whofled her hometown with her single mother and two sisters eightyears ago to the Kakuma Refugee Camp in northern Kenya. Estheris currently studying at Morneau Shepell, the only girls’ high schoolin the camp, and her grades are at the top of her class.Here, going to school is the only way out. “Although my mothernever went to school, she always tells us how important it is to goto school. She wants us to live a better life and have no regrets inthe future,” said Esther Nyakong.However, in the Kakuma Refugee Camp, only a tiny minority of therefugee students can go to college. Esther dreams of becominga neurosurgeon someday. As her elder sister Teresa has justreceived a college scholarship, she wants to be as excellent asher elder sister or even better. Although only a very few refugeestudents here can go to college, she believes that she can makeher dream come true through hard work. “I want to become aneurosurgeon because I want to inspire more people, especiallygirls. When they see me, they will realize that as girls, they canachieve whatever Esther has achieved. Therefore, I want to inspireother people and leave some spiritual wealth.”Esther is able to continue pursuing her dream in Kakuma, allthanks to the support from the EAC program of the UNHCR.
She is studying hard in a refugee camp to realize her dream
The pictures are from the UNHCR
ESG governance
Stakeholder communication and engagement
Transsion Holdings attaches great importance to the sustainable development of the Company, and carries out the sustainabledevelopment of the Company surrounding the operational responsibility, product responsibility, environmental responsibility,employee responsibility, partner responsibility and community responsibility. We fully integrate the environmental, socialand corporate governance matters into our development strategy and business activities, continuously improve the ESGmanagement structure and clarify the division of responsibilities to standardize the governance mechanism, protect rights andinterests of stakeholders and practice sustainable development.In the future, we will continue to improve the ESG management structure, optimize the ESG information sorting work flow,and carry out ESG work under the leadership of the Board of Directors; we will improve the review and decision-makingon major ESG matters by the Board of Directors, such as the special review of the annual ESG report; we will improve theESG management function and hold the Board Secretary’s Office accountable for coordinating ESG related matters, suchas collection of ESG related information and preparation of ESG reports; we will also improve the centralized managementand practical implementation of various ESG issues of each functional department, report or give relevant proposals to themanagement in due time to enhance the ESG performance of the Company.The Company includes major risk indicators in the corresponding performance evaluation system of its executives, and willundertake the corresponding risk responsibilities for the respective business modules.
We put a high value on the two-way communication with stakeholders, understand the concerns of stakeholders via variouscommunication channels, and constantly improve our management and practice in the communication.
Category ofstakeholders
Demands and expectationsCertain communication and response methods
Shareholders/investors
·Continuous and steadybusiness growth·Compliant operation·Protection of shareholders’rights and interests
·Regularly disclose operating and nancial information
·Comply with relevant laws and regulations·General meeting of shareholders, regular and routinecommunication with investors
Employees
·Compensation and benets·Occupational health andsafety·Employee training anddevelopment
·Establish a fair and just remuneration system·Strengthen occupational health and safety management·Carry out diversied training, and keep employeedevelopment channels open
Suppliers
·Fair procurement·Long-term and stablecooperation·Business ethics and anti-corruption
·Establish fair and transparent procurement principles andprocesses
·Carry out regular communication with and training ofsuppliers·Advocate the responsible supply chainIndustry-university-research partners
·Responsible products·Product optimization andinnovation
·Enhance the product responsibility consciousness·Strengthen the industry-university-research projectcooperation
Distributors
·Win-win cooperation·High-quality products andservices·Business ethics and anti-corruption
·Expand cooperation and exchange channels·Keep product and service feedback channels open·Strictly comply with laws and regulations of each placewhere we operate
Media
·Product optimization andinnovation·Compliant operation
·Maintain communication with the media·Timely disclose necessary information
Consumers
·Information security andprivacy protection·High-quality products andservices
·Strengthen the information security and privacy protectionmeasures
·Keep consumer feedback channels open
The governmentand regulators
·Compliant operation·Enterprise’s sustainabledevelopment
·Conduct integrity management and pay taxes inaccordance with the law
·Lean management and sustainable development
Honors in 2021
China Securities Journal
Securities Times(The 15th value selection of China’s listed companies)
www.chinastarmarket.cn
Securities Times(The 15th value selection of China’s listed companies)
2020 Golden Bull Award on TechnologicalInnovation (awarded in December 2021)
Outstanding Management Team of ListedCompany on the STAR Market in China
The Most Valuable Listed Companyon the STAR Market in 2021
China Top 10 Listed Companies on the
STAR Market
Honors of Transsion Holdings on corporate governance in 2021
Identication and analysis of material issues
Step 1 Identication of ESG issues
Important ESG Issue Matrix of Transsion Holdings for 2021
Step 2 Investigation of stakeholders
Step 3 Importance analysis
Step 4 Conrmation by the management
Taking the GRI Standards as the basis, the Company identied and screened the material ESG issues of Transsion for thisyear, referring to the relevant regulations, guidelines and other requirements in China, and taking into account the Company’sbusiness model, the industry development and national policies. We carried out an extensive questionnaires survey targeting allstakeholders in order to enhance the pertinence and materiality of the report, and conducted analysis on material ESG issuesaccording to the feedback from each stakeholder. The Company hopes to pointedly select key issues of high materiality throughthis procedure, and continuously improve its ESG management accordingly, in an e?ort to better meet the expectations anddemands of stakeholders.
Based on the Company’s business model, and taking into account the national policy guidelines, industry development situationand concerns of stakeholders, we have identied 13 ESG issues, namely responsible products, employee health and safety,business ethics and anti-corruption, information security and privacy protection, human resources development, corporategovernance, responsible supply chain management, waste management, green products, risk management, public welfareand charity, climate change and GHG management, and energy management in three major areas of environment, society andgovernance.
The members of the Board of Directors participated in this year’s assessment on the material ESG issues of Transsion Holdings.We also collected a total of 714 answered questionnaires from investors, suppliers, government authorities, distributors,consumers, employees and other stakeholders to fully understand and collect internal and external stakeholders’ assessment onthe importance of the ESG issues of Transsion Holdings for the year.
Based on the materiality principle, we ranked the ESG issues from two dimensions of “importance to the Company” and“importance to stakeholders” based on the results of the questionnaire survey, and drew up a matrix of material issues.
The Board of Directors and management reviewed the results of the importance analysis and conrmed the important ESGissues and the issue matrix for the year.
Governance
Importance to corporate development
Importance to stakeholders
Highly important issues
Moderately important issue
Generally important issue
EnvironmentSociety
Responsible productsEmployee health and safetyBusiness ethics and anti-corruptionInformation security andprivacy protectionHuman resourcesdevelopmentCorporate governanceResponsible supply chainmanagement
Waste managementGreen productsRisk managementPublic welfare and charity
Climate change andGHG managementEnergy management
2021 Environmental, Social and Governance Report
Regulatory governance and risk control
Focus on corporate governance
Transsion Holdings’s Risk Management Process
Protection of the rights and interests of minority shareholders
Compliance information disclosure
Strengthening risk control
Transsion fully respects the rights and interests of all shareholders and attaches particular importance to safeguarding theequal status enjoyed by minority shareholders. In accordance with the Articles of Association, the Company publishes anannouncement according to the relevant information disclosure requirements of the stock exchange before convening a generalmeeting to disclose the matters to be deliberated at the meeting as well as the date and venue of the meeting. The generalmeeting adopts a method of on-site voting and online voting in combination to ensure that all shareholders can fully exercisetheir rights. Meanwhile, it discloses the results of separate vote counting from minority shareholders in the announcement ofresolutions of the general meeting for relevant proposals involving separate vote counting from minority shareholders, to fullyreect the opinions of minority shareholders.
The Board of Directors of the Company has set up Strategy Committee, Audit Committee, Nomination Committee, andRemuneration and Evaluation Committee. Each committee performs its own duties to fully ensure the rationality of internalresource allocation and the efficiency of operation decision-making. The appointment of Board members fully considersdiversied factors, including but not limited to professional, experience, education background, age, gender, etc.As of December 31, 2021, Transsion had 9 members of the Board of Directors totally, including 6 executive directors and 3independent directors. The 9 directors have rich industry experience and professional abilities in communication, technology,nance and other elds, one of which is an expert in nancial management and has a professional background in nancial riskmanagement.
Transsion actively fullls its information disclosure obligations and discloses relevant information to all shareholders, investorsand the public timely and completely in accordance with the principles of openness, justice and fairness, allowing investors to befully informed of the Company’s nance, operation, human resources and other material matters. The Company also maintainsgood communication with investors and the public by establishing various communication channels, and standardizes investorrelations management behaviors to ensure honesty, responsibility, and respect to investors.
Transsion strives to improve the risk control process and mechanism, and constantly lifts the risk control capability to ensurethe stable operation of the Company. By strengthening the coverage of legal professionals, optimizing the system and processguarantee, promoting standardized construction and management, and establishing special communication mechanisms formajor issues, the Company reinforces the risk control in multiple dimensions and applies the risk control process to all aspectsof its management and operation.In 2021, Transsion adopted its major risk prevention and control mechanism in a multidimensional way, and no major risk eventoccurred throughout the year.Strengthening the coverage
of personnel
According to the principleof comprehensive busi-ness coverage, for allkinds of business, therewere legal personnel of theCompany responsible forbusiness connection andembedding, sorting outrisks in various businessessuch as employment risk,outsourced factory riskand property insurancerisk, and providing specialsolutions.
Establishing specialcommunication mechanisms
for major issuesRegarding various majorissues and risk issues,special communication andhandling mechanisms wereestablished, and relevantdepartments were coordi-nated to follow up on anddeal with the key issues,and form a closed loop toavoid potential risks.
Optimizing the system and
process managementThe Legal Department of theCompany issued and imple-mented the online approvalprocess of contract signingand verication and the recov-ery and management mecha-nism of contract les to ensurethat the signing of all kinds ofcontracts is subject to neces-sary business approval andapproval of professional legaldepartment and other relevantdepartments, thereby prevent-ing risks and standardizing theoperation process.
Implementingstandardizedmanagement
The Legal Departmentof the Company was re-sponsible for establish-ing various legal stan-dards and a standardtext library, and improv-ing business efficiencyand reducing legal risksthrough standardizedmeasures.
The Company attaches importance to the regulation of governance, strictly follows the Company Law of the People’s Republicof China, Securities Law of the People’s Republic of China, Regulations on the Governance of Listed Companies, Rules forListing Shares on the Shanghai Stock Exchange STAR Market and relevant regulations of regulatory authorities such as theCSRC, and e?ectively implements the Articles of Association, Rules of Procedure for General Meeting of Shareholders, Rulesof Procedure of the Board of Directors and Rules of Procedure for the Board of Supervisors, etc., so as to continuously improvethe corporate governance of the Company, perfect the internal control system, actively regulate the operation of the Company,strive to reduce risks and ensure the e?ective operation of the corporate governance structure.
Supervision
andimprovementRiskresponseRiskassessmentRiskidenticationRiskprevention
In 2021, theCompany held
generalmeetings ofshareholdersCorporate Governance Framework of Transsion Holdings
General Meeting of
Shareholders
Board of SupervisorsBoard of Directors
Management
Strategy Committee
Audit CommitteeNomination CommitteeRemuneration andEvaluation Committee
meetingsof the Board ofDirectors
meetingsof the Board ofSupervisors
Improving the compliance system
Emphasizing compliance training and publicity
Transsion lays stress on law-based corporate governance, and steadily promotes corporate compliance management bycontinuously improving the Company’s compliance management system and making comprehensive arrangements for thebuilding of a law-based culture. Transsion constantly establishes and improves the Company’s compliance management systemand perfect relevant system in terms of fair competition, labor security, intellectual property protection, consumer protection,incorruptible management, contract and business compliance management and case compliance management and other eldsto ensure the legality and standardization of its commercial activities.In accordance with compliance requirements, the Company issued the Contract Management Measures, Lawsuit ManagementMeasures, Case Disclosure and Reporting Management Process and other rules and regulations, and constantly updatedand improved the relevant compliance system and institutional process based on compliance requirements and businessdevelopment.
In order to strengthen employees’ compliance awareness, the Company carries out diversied compliance training and publicityonline and o?ine. We publicize Transsion Holdings Red Line Management System to all employees at the headquarters throughscrolling display, posting eye-catching signs and other methods. Meanwhile, we organize online compliance training andexaminations, greatly improving employees’ compliance awareness. For new employees, the Company highlights complianceprovisions in the orientation training. Additionally, based on the management needs, we also organize compliance training forsome professional functional line employees from time to time.
Business ethics and anti-corruption
Business ethicsTranssion attaches great importance to business ethics management, and promotes e?ective management mechanism. TheBoard of Directors is responsible for the supervision and management of the overall operational risks, the Audit and SupervisionDepartment carries out internal business ethics and integrity management, and the Procurement Department carries outtargeted business ethics and integrity management of procurement personnel and suppliers.Transsion strictly observes the Anti-Monopoly Law of the People’s Republic of China, the Anti-Unfair Competition Law of thePeople’s Republic of China, and the Interim Provisions on Prohibition of Commercial Bribery issued by the State Administrationfor Industry and Commerce, as well as other laws and regulations related to business ethics. It has established and implementedTranssion Holdings Red Line Management System and other regulations, and published Transsion Holdings’s Ethics of BusinessOperation on its o?cial website to standardize and guide the construction of our business ethics.
Transsion Holdings persistently carries out business ethicsaudit. In 2021, a total of three special audits were conducted,covering Southeast Asia, East Africa, West Africa and otherregions. Based on the audit results, the Company providedopinions to further standardize the Company’s operation.
Information disclosure:
According to applicable regulations and major industrypractices, information about business activities, organizationalstructure, nancial condition and performance is made public.All information disclosed has been reviewed by the BoardSecretary’s O?ce and other relevant departments to ensurethe authenticity, accuracy and integrity of the information.Arm’s length transaction:
Applicable fair competition laws and antitrust laws are strictlyfollowed. No employee shall manipulate or use privilegeinformation, or otherwise obtain unfair benefits in an unfairmanner. The Company adheres to the standards of fair trade,advertising and competition.Operation in good faith:
The Company adheres to the strict good faith standard inall business interactions and prohibits any form of bribery,corruption, extortion and embezzlement.Intellectual property rights:
Intellectual property rights are respected. Information securityis well protected, and confidential or personal informationabout the Company, customers or suppliers shall not bedisclosed to others.
Publicity Signs for Strengthening the Construction of Business Ethics
Transsion's Training Class Sign-in Wall
Construction of integrityIn global business activities, Transsion Holdings fully respects and rmly complies with the applicable laws and regulations inthe countries where it operates, always adheres to good-faith operation and standardized management, and adopts a “zerotolerance” attitude towards any form of corruption.
Reporting is an important part for maintaining the Company’s business ethics, and Transsion attaches great importance tokeeping its reporting channels open and the reported information condential. In order to ensure the normal operation of theCompany’s management system and encourage employees to actively report problems in the Company’s management process,based on the reporting procedure of the Audit & Supervision Department, we set regulations for and encourage and supportemployees and people outside the Company to report all suspected irregularities and violations of rules and disciplines byTranssion employees.
·For employeesThe Company has topped Transsion Holdings Red Line Management System on the OA system and conducts irregularpublicity and online training and examinations for all employees.The Company provides online or offline training for new recruits, which covers 100% of the new recruits; the Company
provides o?-line training presentations to some management personnel of departments.·For suppliersThe Company holds regular communication meetings with suppliers every year to strengthen the publicity of integritymanagement to suppliers.The audit and internal control personnel visit suppliers on site from time to time to listen to external voices and improve internal
management.
Reporting mechanism
·Transsion Holdings Red Line Management System has been established and implemented, which is as the basic system of
Transsion's business ethics and anti-corruption management applicable to all employees of the Company. The system denes
the management requirements, punishment measures, report management and other contents against violation or illegal
behaviors at di?erent levels.·Code of Conduct for Procurement Personnel has been established for procurement personnel, to regulate the relevant
principles of integrity and business ethics that procurement personnel must abide by in supplier cooperation and other
commercial activities.·Process for Introducing New Suppliers, Process for Managing Supplier Feedback and other regulations have been developed
to standardize the business ethics and integrity management of the supply chain and further expand the coverage of integrity
construction.·Employee Handbook has been formulated to require all employees to resolutely implement the relevant provisions on integrity
and self-discipline.
System Support
·For employeesIn accordance with the relevant requirements of the Employee Handbook, employees (including laborers and interns) require
to sign the Declaration of Integrity (or an employment contract with integrity requirement terms).The employees of the Procurement Department are required to sign the Letter of Commitment to Integrity and Honesty of
Business Practices every year, to carry forward honest work value, fulll the duty of honest business practices and regulate
management behavior, and stimulate the healthy, sustainable and rapid development of the Company.·For suppliersThe Company requires suppliers to sign the Letter of Commitment to Integrity and Honesty for Suppliers and the Declaration
of Stake for Suppliers, and promotes integrity and honesty during supplier reviews.
The Company conducts publicity of Transsion Holdings Red Line Management System from time to time.The system classies nine categories of violation or illegal behaviors as “primary red line” behaviors andseven categories of violation as “secondary red line” behaviors, and defines the punishments againstviolation or illegal behaviors at di?erent levels. The publicity takes both online and o?ine forms, and thereporting channels of violation are disclosed in the relevant publicity materials in an attempt to e?ectivelystrengthen the Company’s integrity and create an environment of transparency, integrity and self-discipline.
Publicity of Transsion Holdings Red Line Management System
Publicity Sign for the Transsion Holdings Red Line Management System
Multi-dimensional implementation
Special publicity
Reporting channels
Reporter protection
We regard integrity and honesty as essential qualities for self-discipline and compliance of Transsioners, and accept thesupervision from the society. Transsion Holdings has disclosed various reporting channels on the Company’s website, includingletters, visits, telephone calls and emails, so as to widely receive opinions on the Company’s integrity building from all walks oflife.
We attach great importance to the protection of the legal rights of reporters, and maintain condentiality for and protect theiridentity information. To ensure the interests of reporters, all reported information will be kept condential to the person beingreported against. For reported matters involving its executives, communication will be made directly with the Audit Committee toensure the interests of the reporter.
Moreover, we have also topped the announcement of supervision and reporting on the Company’s internal OA system todene the scope and content of supervision and reporting, as well as the reporting methods. If the report is proved true afterinvestigation, the reporter will be given a reward. All employees are welcome to participate in supervision to prevent and stop allviolations and ensure the healthy development of the Company.
Letter: Audit & Supervision Department, Shenzhen Transsion Holdings Limited, 17/F, Desay Building, No. 9789
Shennan Road, Hi-Tech Park, Nanshan District, ShenzhenEmail: Ad@transsion.comTip-o? hotline: +86 755 3364 0091
Supervision and reporting channels
Reporting handling procedureIn order to foster a clean environment, the Company claries the acceptance procedure of reporting and supervision to practicecorporate management of transparency, integrity and self-discipline.The Company handles reported information according to the following process:
Reporting
Reporting acceptance
Whether it is eligiblefor investigation
Whether it involvesinformation security, humanresources and legal a?airs
N
N
N
N
Y
Y
Y
Y
Acceptance Process of Reporting and Supervision of Transsion Holdings
Reporting
acceptance
InvestigationReportingHandlingClosure
Relevantinformationregistration by thereporting register
Signed and conrmed by the relevantresponsible person of Audit andSupervision Department
Information archivingand feedback to thereporter
Designate an investigation leaderto set up an investigation teamDevelop investigation proceduresand carry out the investigation
Issue opinions on awards orpunishments in accordance with the
Company’s relevant regulations
Announce the opinions onawards or punishments
Establish a joint investigation team and designate the person in chargeDevelop investigation procedures and carry out the investigation
Obtain evidence and issueinvestigation ndings
Prepare an investigation report
Whether the case needs tobe referred to the justice
Refer to justice for handling
Close and archive the case
Conrmationby themanagement
Honors of the brands under Transsion in 2021
Quality management systemTECNO, itel and Innix ranked 6
th, 21
st
, and 25
th on the 2021 Top 100 Most Admired Brands in Africa
Innix Zero 8 won the iF Design Award 2021
African Business
iF Industrie Forum Design
Honors in 2021
TECNO won the “Mobile Phone Brand of the Year”TECNO operating system HiOS won “Best Android UI Award” in Nigeriaitel was honored as the “Best Big Battery Smartphone Of The Year” in Nigeria
The Beacon of ICT Awards (BoICT)
TECNO Mobile won the “Mobile Phone Brand of the Year” awardGhana Information Technology and Telecom Awards (GITTA)
Innix XOS won the “Most Inuential Smart Phone OS in Egypt” awardEI Fagr
Shenzhen Tecno ISO 9001 CerticationChongqing Transsion Technology
ISO 9001 Certication
Product quality assurance
Transsion strictly observes laws and regulations in connection with product quality management, enhances its capability in
quality risk management and continuously improves its product quality management system to ensure the top product quality.
Transsion has put in place a well-established product quality management system and has been in strict compliance with
the Product Quality Law of the People’s Republic of China and other laws and regulations that govern in the places where
we operate. Based on the standard framework of the ISO 9001 quality management system, the Company has developed a
comprehensive quality management process and system and continued to improve and update them in response to business
development and internal and external review on an annual basis. In 2021, Transsion Holdings, Shenzhen Tecno and Chongqing
Transsion Technology passed the replacement review of ISO 9001 quality management system certification, ensuring the
e?ective operation of the quality management system.
Transsion Holdings ISO 9001 Certication
Product recall
Transsion has always attached great importance to aftersales services and consumer rights and interests and established amanagement mechanism for product recall. To standardize the workow of product recalls, we have developed internal policies,including the Control Measures of Product Recall. In addition, the Company has set up a product tracing system at the devicelevel to ensure accurate product identication upon product recall, and solve the problem thereof swiftly and properly.We value the management of product recall and have established a well-rounded product recall management process with fullcoverage of closed-loop recall management from pre-recall preparation, recall implementation, and recall summary. In 2021,there was no product recall event arising from product quality.
Collection of
feedback
Set up aproduct recallgroup
Determinethe scopeof the recall
Release recallannouncement
Recallproducts and
implementreassurance
policy
Process theproductsrecalled
Correct andprevent
Maintainrecords
Product Recall Management Process of Transsion Holdings
0105020603070408
Quality risk management
The Company gives top priority to managing potential risks in respect of product quality, for which we have established andcomplied with the Control Procedures for Process Risk Identication and Evaluation, the Procedures for Risk and OpportunityResponse Planning, and other internal risk management policies. By doing so, we have put the quality risk identificationprocesses in place, and evaluated and made countermeasures on such risks.Quality review
Product inspection
Guided by the industrial standards, we carry out an internal audit over quality management system and organize externalreviews by professional third parties on a regular basis. In 2021, our plants in China nished the ISO 9001 quality managementsystem certication and evaluated our internal quality management based on ISO 9001 standards. To address any potentialrisks or non-compliance identied during evaluation, we implemented specic measures to improve our management in thefurtherance of quality assurance.
Transsion has established inspection norms of the supplied materials, manufacturing processes, and nished products for itsown plants, central warehouses, and outsourcing factories.
In addition, Transsion has developed corresponding management systems and control procedures in multiple aspects of productquality management, in an e?ort to improve product management capability in a full and all-round scale, covering R&D process,incoming material quality, manufacturing process, product certication and testing, and other processes.For the purpose of product quality enhancement, Transsion engaged in several special improvement projects in the aboveaspects in 2021:
Product quality trainingThe Company has been committed to improving its in-house quality management by conducting training relating to productquality management systems, including ISO 9001, ISO 14001, and ISO 45001, and other training to upgrade internal auditors’inspection skills. To enhance company-wide quality awareness and improvement capability, we have carried out severalsessions of product quality training. During the Reporting Period, the Company totally carried out more than 160 sessions ofproduct quality management training, to scale up the product quality from R&D, supplied material, manufacturing processes, etc.
R&D processquality
Incomingmaterial quality
Manufacturingprocess quality
Product certicationand testingCompleted optimizationof 8 standards, and makeover 80 improvements formaterials such as smallboard, flexible printed cir-cuit (FPC), receiver, three-in-one charging cable, andmotherboard.
Conducted 5 projectsincluding enhancingincoming quality controland interception capa-bility, and fool-proofingmanagement for minorproblems.
Completed measurementcalibration of 51 kindsof devices, includinglength, weighing appara-tus, mechanics, thermalengineering, and electricappliance.
Completed a number ofprojects including improv-ing the first pass yield ofSolder Paste Inspection(SPI), upgrading the SMDManufacturing ExecutionSystem (MES), and en-hancing the effect of on-site quality control.
Guarantee of product safety
In Transsion, safety is deemed as a key component in the lifecycle of a product. We have strictly observed the laws andregulations in connection with product safety in the countries or regions where we operate. By continuously improving internalpolicies and standards of safety management, we strengthen the basis for secured operation, and further standardize ourmanagement standards in product safety, information security, and other sectors. Besides, we also energetically carry out safetyculture activities in order to continuously deepen employees’ safety awareness and further improve our management of productsafety.During the Reporting Period, there were no major incidents of non-compliance concerning the health and safety impacts ofproducts and services.
Information security management
Product safety and reliability
We have a key focus on information security management andprivate data protection by strictly conforming to the laws andregulations in connection with information security and privacyprotection in China and other countries and regions where weoperate, such as the Cybersecurity Law of the People’s Republicof China, the Administrative Measures for the Graded Protection ofInformation Security and the Nigeria Data Protection Regulation.The Company has established and published security managementpolicies on data security, privacy assessment and contingencyresponse, including the Administrative Measures for Security ofDigital Assets, the Management Procedures for Privacy ImpactAssessment, the Norms for Response to Users’ Personal InformationRights, the Administrative Procedures for Information Security andPrivacy Incidents, etc., which have specied and standardized theprocess for information security handling and privacy protection.At present, the Company has been awarded with the ISO 27001Information Security Management System Certificate and the ISO27701 Private Information Management System Certificate by theBritish Standards Institution (“BSI”). In addition, Transsion’s OAsystem and SRM (supplier coordination platform) system havepassed the Level 2 certication of classied protection of informationsecurity. In 2021, the Company did not record any data securityincident or major incident that leaked the private information ofemployees and customers.
We have established several reliability labs and imaging labs at home and abroad, and build and shape the capabilities ofcomplete set reliability test, raw material certification, standard formulation, among others, targeting smart mobile devicesand peripheral products. Our testing capability covers GB/T 2423, GB/T 17626, GB/T 4208, GB/T 1539 and other nationaland international standards. We adopt multiple tests relating to product safety, including drop test, high and low temperatureenvironment test, leakage test, waterproof test, ame retardant test, high-temperature short circuit, heavy impact, extrusion, highvoltage resistance, lightning surge, and high voltage on and o?.Moreover, we apply the stringent standards to defend the battery safety bottom-line and protect product safety. We prefer long-life battery component materials, meet integrated requirements for environmental protection, recyclability, ame resistance, etc.,endeavor to prolong the service life of batteries, thus further implementing the requirements of battery safety and environmentalprotection.
During the Reporting Period, the Company carried out 12 sessions of daily training on information security and 12 sessions of dailytraining on privacy protection, to further enhance the information security management.Through a series of measures to enhance the information management mechanism, we protect the security of customerinformation, employee privacy and other data.
To strengthen the development of internal information security management, Transsion has set up an information security andprivacy management structure to further underpin the data and information security management.
Global Security and Privacy
Committee (GSPC)
Information securitymanagement structure
ISO 27001 InformationSecurity ManagementSystem Certicate
The committee ischaired by the director
There are specialists in Processand Information Center
Responsible for the overallmanagement of information
security in Transsion, andimprovement of informationsecurity management systemResponsible for the data security ofinformation system and contingencyresponse in Transsion, and guidingand monitoring the fulllment ofvarious tasks of information security
management
Set up di?erent information classication according to di?erent levels of information and carry out strictlyhierarchical and classied management through permission settings
ISO 27701 PrivateInformation ManagementSystem Certicate
Composition Principal responsibilities
Information SecurityDepartment
Encryption anddesensitizationmanagement
Ad-hocmanagement
Hierarchicaland classiedmanagement
Proactive risk
prevention
A dedicated team is established to manage information and data security
A series measures are taken with reference to related security norms, e.g., mandatory encryption overcondential eld in database
We conduct internet application security assessment and penetration tests over systems that have beenlaunched, and x any issues identied on a timely basis;New system or major version iteration cannot go live without passing strict security tests;For key core information systems, we conduct security grading protection assessments based on theCybersecurity Law of the People’s Republic of China, and organize contingency drill at least annually;Production databases are accessed through bastion host and strict measures are implemented forpermission control to prevent data leakage risk.
Product optimization and innovation
Guarantee product innovation
Innovation and R&D represent the core competitive edge to drive Transsion to forge ahead. With unremitting e?orts, we arecommitted to improving our R&D capability, and o?ering customers with more high-quality products.
By upholding the development philosophy of “Think Globally, Act Locally”, Transsion furthers its local R&D and innovationstrategy with a focus on users in emerging markets, and continues to maintain its leading market position in several keytechnical areas, including photography technology designed for dark skin and innovative application of new hardware material.In 2021, Transsion sustained a heavy investment in R&D and focused on technical reserve. By continuous input in newmaterials, processes and technologies, we created more di?erentiated values for users in the emerging markets. Meanwhile,we have established unique di?erentiated advantage in R&D by making substantial investment in key technical areas includingdark skin imaging, AI algorithm, AI language cognition and material innovation. Transsion’s active e?orts of applying patentedtechnology and technological results into ITU (International Telecommunication Union) standard and relevant patents guaranteethe development of product innovation.
Transsion’s AI Technical Capacity
Articial Intelligence (AI)The Company proactively explores and develops advanced AI-based technology to bring about a better experience to usersin devices and applications, realizing our vision of improving the lives of as many people as possible through technology andinnovation.Transsion AI-based technology focus on overseas computer vision, natural language processing (NLP), on-device intelligence,intelligent recommendation, other machine learnings and other elds. Transsion has gradually established a complete capabilitymatrix and AI-based capability platform and on that basis, Transsion has built relevant applications to constitute a powerfulecological chain application and intelligent software, laying a solid foundation for the rapid development of AI-based capability.Meanwhile, Transsion pays attention to technology breakthrough in a number of sectors, proactively develop functions inclustering for classication of dark skin groups and in understanding of high-quality images and various kinds of natural languages.In business segments of information, video and applications, Transsion provides intelligent solutions for users under multiplescenarios with a personalized recommendation capability and growth testing platform.
Multi-scenario intelligent solutions: Intelligent identificationand intelligent decision-making under various scenarios to realizesenseless synergetic recognition and decision-makingIntelligent recommendation: Feature an in-depth understandingof users, and industry-based recommendation along with contentreview, algorithm learning and content recommendation based onthe needs of usersOn-device intelligence: Provide device prediction capacity andcompensate service capacity that are not available as a result ofprivacy securityMulti-modal integration: Define interaction between overseasintelligent products and users through the multi-modal interactionssuch as clustering / classication, image caption, text image andlanguage
IntelligentrecommendationservicesSpam SMSclassicationOn-device imageclassication
Intelligentrecommendation
platformText calibrationOn-device faceclustering
Machine learning
platformText categorizationSmart scan
Content QA
servicesClustering /classicationOCR
Contentunderstanding
servicesHigh-qualityimagesFace comparison
A/B testing
platformImage captionFacial recognition
201920202021
R&D investment (RMB million)805.081,157.671,510.88Proportion of R&D investment inoperating income
3.18%3.06%3.06%Number of R&D personnel (Person)1,5681,9152,845
In April 2021, the 10th Anniversary Award Ceremony of Wu Wen Jun AI Science & Technology Award, thehighest award in China’s AI eld, was held in Beijing. Transsion Holdings was granted with “Wu Wen JunAI Technological Progress Award (Technology Innovation Engineering Projects of Enterprises)” for its KeyAI Technology R&D Platform for Dark Skin Imaging in the regions of the Belt and Road Initiative..
Transsion won Wu Wen Jun AI Science & Technology Award, empowering high-qualitydevelopment by technology innovation.
Protect intelligent properties (“IPs”)
The Company sustains investment in R&D, pays attention to technological innovation and IPs protection and relentlesslyimproves competitive edges in technology and IPs to support the global business operation of the Company. Respecting others’IPs and rationally resolving IP-related disputes in compliance with the rules of industrial IPs is the route the Company must takefor innovation and development. During its development, the Company has established an IP management system and policy,strengthened innovation and protection of patents, trademarks, copyrights and other intangible assets, and actively partnered withuniversities and external technology powerhouses, thus e?ectively scaled up the Company’s capabilities in IPs protection and riskcontrol. During the Reporting Period, the Company carried out over 240 training and interviews on protecting IPs to further developawareness and responsibility of intellectual property protection.In 2021, the Company made a remarkable achievement and breakthrough in intellectual property rights application, riskprevention and response, and cracking down counterfeits and protecting its own rights.
Enhance technology inclusion
Transsion always upholds the mission of improving the lives of as many people as possible through technology and innovation.To assist less educated group, the elderly and the group with poor eyesight or the blind people to read all the texts on mobilephones, including menus, phone numbers, short messages, contacts and other non-xed texts, and solve their troubles whenusing mobile phones, we adopted NLP intelligent solution to develop intelligent voice reading software for feature phones. ROMand RAM occupied by traditional NLP tend to be more than the hardware capacity of feature phones, making it di?cult to importNLP intelligent solution. As a result, Transsion worked with its partners to develop a space optimization solution, making NLPintelligent solution available to users, assisting users to interact with mobile phones through auditory sense. This representsTranssion’s commitment to fullling its social responsibilities.
Barrier Free Design
In 2021, theCompany applied for
1,028
patents
the Company wasawarded with
patents
including utility modelpatents
invention patents
design patents
Green and low-carbon operation
Environmental management system
Green and environmental protection management
Transsion Holdings practices the green development concept, establishes and improves the environmental managementsystem, strengthens energy management and control, and actively promotes the management and recycle of electronic wastes.In 2021, Transsion Holdings, Shenzhen Tecno Factory and Chongqing Transsion Technology passed the certication of ISO14001 Environmental Management System.
We have set up the Environment, Health and Safety (EHS) Management Committee, as the leading body of environment,occupational health and safety management of Transsion, to actively promote the Company to make continuous progress in thegreen and low-carbon production and operation.In terms of management standards, we strictly comply with the local relevant laws and regulations and the industry standardsfor emissions in our daily operation, timely obtain necessary environmental permits, approval documents and registrationcerticates, and develop multiple internal management systems including the Agreement on Hazardous Waste Disposal, theSolid Waste Management Regulations and the Management Regulations for O?ce Environment Safety, so as to implement theCompany’s environmental management requirements and standards.In terms of management practices, all factories under the Company strictly implement the external discharge standardsconforming to local laws and regulations, and carry out management practices complying with the local environmentalassessment standards in the production process. We have also formulated a series of response plans for environmentalemergencies, and organize routine emergency drills to ensure environmental safety.There's no major incident of non-compliance with environmental protection laws and regulations this year.
To practice the management concept of green and environmental protection, we carry out energy-saving equipment upgrading,improve the energy e?ciency, standardize waste management, reduce pollutant emissions, advocate the green operation andgreen o?ce, and fully implement the green and environmental protection management.Water resources managementComplying with the Law of the People’s Republic of China on Prevention and Control of Water Pollution and the local emissionstandards, Transsion actively advocates water conservation, strengthens water resource recycling and utilization, and vigorouslypromotes water resources management concept.In daily work, we adopted positive measures to save water and measures are implemented as follows:
The factory realized the recycling and reuse of air-conditioning condensate water through the method of recyclingcondensate water, which e?ciently reduced the consumption of domestic water.We change toilet ushing faucets to water-saving valves, and regularly inspect and repair water facilities to reducethe water consumption per unit.We post water saving signs thoroughly to proactively advocate water conservation.
Recycling system of condensate water
The Shenzhen Tecno Factory promotes to use the recycling system of central air-conditioning condensatewater, and realizes the chilled water recycling of the air-cooled air-conditioning main frame and thecondensate water recycling of air-conditioning terminal equipment, thus further reducing the waterconsumption e?ectively.
Transsion Holdings ISO 14001 CerticationShenzhen Tecno ISO 14001 CerticationChongqing Transsion Technology ISO 14001
Certication
Exhaust gas management
Transsion implements the relevant requirements of environmental laws and regulations, improves the management measuresfor the exhaust gas generated in the production process and ensures that all emissions meet the local emission standards.
The two domestic factories set up self-built facilities for exhaust gas treatment in strict accordance with theenvironmental impact assessment requirements. With the application of the two-stage treatment process of UVphotolysis + activated carbon adsorption, after collected, the organic exhaust gas with low concentration producedin the workshop is introduced into the UV photocatalytic oxidation decomposition device on the roof through pipes,fans and exhaust pipes, which can e?ectively decomposes the organic pollutants in the exhaust gas, and thenthe exhaust gas is introduced into a high-e?ciency activated carbon adsorber through pipes and fans, which canseparates the particulate pollutants in the exhaust gas, so as to achieve the emission up to the standard;Transsion carries out regular replacement of the absorbing materials in the activated carbon absorber toguarantee the e?ective operation of facilities;Regularly entrust the third-party institutions to test the exhaust gas emission concentration to meet the exhaustgas emission standards applicable to the factories.
Exhaust gas purication device
Transsion's Chongqing factory and Shenzhen Tecno Factory were both rated as the “GreenFactory”Transsion's Chongqing factory was rated as a municipal “Green Factory” in 2021 by the ChongqingEconomic and Information Commission.
The Shenzhen Tecno Factory was rated as a municipal “Green Factory” in 2021 by the Ministry of Industryand Information Technology of the People’s Republic of China.
Waste management
While complying with the relevant laws and regulations such as the Law of the People’s Republic of China on the Prevention andControl of Environmental Pollution by Solid Waste, Transsion Holdings formulates and implements the Agreement on HazardousWaste Disposal, the Agreement on Waste Sales and other agreements to clarify and standardize the waste management. Weadopt classied management standards and take relevant management measures for di?erent types of waste to reduce theimpacts of wastes on the environment.
For hazardous waste: We set up a specialized warehouse to store hazardous waste, and entrust the third partywith the professional qualication for unied transfer and disposal;For general waste: We sign agreements with resource recyclers to carry out effective recycling of generalwaste such as waste that can be recycled and reprocessed to achieve the e?ectiveness of recycling;For kitchen waste: We implement classied management in line with the government requirement, and thenthe property management company hands it over to the municipal department for unied transfer or disposal.
Recycling of electronic wasteWe are committed to realizing the recycling of resources and constantly improving the recycling of electronic waste withinthe business operation area and scope. The customer service brand Carlcare we operate recycles electronic waste in over40 countries or regions worldwide. In accordance with the requirements of applicable laws and regulations in the countries orregions where we operate, we strictly comply with the Basel Ban Amendment of the Basel Convention, which clearly prohibitsthe export of electronic waste to Non-OECD countries. We do not charge consumers any amount in the recovery course.
Recycling scope of products
Recycling mode
Treatment measures
We advocate recycling of electronic waste across the globe, set recycling plans and carry out environmental protection publicityat irregular intervals, promoting environmental protection recycling of electronic products to consumers, so that the electronicwaste can be recycled and treated e?ectively in local places.
We maintain the cooperation with local designated resource processors or recycling vendors who have professionalqualifications, carry out unified collection of waste electronic equipment in accordance with environmental protectionrequirements, and then classify electronic waste and recycle resources.
Recycling operationWe partner with professional environment protection agencies to drive the building of electronic waste recycling networks. As ofthe end of 2021, we had established cooperation relationship with local qualied environmental protection agencies in Nigeria,India, Kenya, Bangladesh and many other countries and regions, which signicantly increased the specialization and e?ciencyof electronic products recycling.
The publicity of environmental protection recycling of
electronic waste carried out in India
Recycling certicate of environmental protection recycling agency
(example in Kenya)
Transsion’s own brands
Including the single phones, PCBA mainboards, batteries, screens, chips, etc., and providing repair service.
Direct pick-up by Carlcare, or onsite collection.
Setting recycle bins on the site, marking recycling of mobile phones of all brands for consumers to voluntarily discard theirproducts, including the single phones, PCBA mainboards, batteries, screens, chips, etc.
Response to climate changeTranssion Holdings is well aware of the important impact on sustainable development of extreme disastrous weather, globalwarming, and other e?ects due to climate change. By actively practicing the green sustainable development philosophy, we fullyinvestigate the local natural environment and ecological environment in the factory construction state, and assess the impactof the factories on the natural environment and ecological environment. We are committed to helping the green and low-carbondevelopment through the management renement, in order to duly contribute to the mitigation of global climate change.Management of GHG emissionsWe are committed to promoting technological innovation in an active manner in the process of product design, manufacturingand use, and through technical methods, improve energy utilization e?ciency, reduce GHG emission, and gradually introducesrenewable energy sources.In addition, we refine the internal management, properly track and record energy consumption in relevant workplaces toadvance and enforce energy management, thus controlling the GHG emissions.
Non-Transsion’s own brands
Recycling advocacy
Promotion of green o?ce
Transsion advocates the green and sustainable concept and applies it to the daily operation and management. We earnestlyadvocate green office, formulate the internal Management Regulations of Office Environment Safety, calling on employeesto start from the trivial and start from the side, develop the working habits of green o?ce, energy saving and environmentalprotection, and create a green and energy-saving o?ce environment.
Post prompt signs such as Save Water, SaveElectricity, Save Paper, Turn Off Lights WhenLeaving, and Control the Temperature of Air-conditioning at 26℃ in o?ces and public areas.Make sure that the lights, air conditioners andprimary air systems are turned o? in unmannedareas after workReplace the lighting system with energy savinglamps according to the standards for productionneedsRegularly inspect and repair water equipment toreduce leakage
Mechanism for response to extreme weatherWe formulated emergency response plans for various types of extreme weather like rainstorm, typhoon and earthquake,from multiple aspects such as early warning and reporting mechanism, employee evacuation, protection of various corporateassets and coordination of resources, to minimize the damages arising from extreme weather, and protect the life and health ofemployees and the property safety.
Paperless o?ceGreen o?ce measures
Green technology empowerment
Transsion actively responds to the call of the national ve development concepts of “innovation, coordination, green, opening-up and sharing”, and seeks and creates new technological assistance. In daily operation, we improve operational e?ciency,save energy and reduce consumption by applying the big data, the Internet of Things, etc. In the production and manufactureprocess, we proactively carry out energy conservation and emission reduction from aspects such as management optimizationand technological improvement, strictly control pollutant emissions, and provide the market with green and environmentallyfriendly products.Application of energy-saving technologyWe take the initiative to eliminate backward production equipment and processes, actively introduce production equipmentwith lower energy consumption, improve production management, and drive clean production, to improve the comprehensiveutilization of resources and reduce pollutant emissions.In terms of energy saving of production equipment, we apply new frequency conversion air compressors and pure electricforklifts, of which the new frequency conversion air compressors adjust the gas consumption through frequency conversionto achieve the purpose of saving electricity consumption, and the pure electric forklifts e?ectively reduce the use of diesel inlogistics and transportation of the factories. In 2021, for example, by introducing the new frequency conversion air compressors,the Shenzhen Tecno Factory allowed the real-time adjustment of the working frequency of air compressors according toproduction demands, realizing a reduction of approximately 20% in the monthly energy consumption of the air compressorsystem.In terms of energy saving in production management, we further reduce energy consumption by optimizing managementmeasures and rening management standards. We adopt the plan of air-conditioning o?-peak water cool storage. During thepeak electricity price period, the air-conditioning main frames are kept o? as much as possible, and the excess valley power ofthe grid at night is used for cooling through the cool storage tank, which e?ectively saves the energy consumption. In addition,in 2021, Chongqing factory implemented the comprehensive water and electricity cost reduction, and realized a reduction ofapproximately 265,000 kWh of electricity consumption in 2021 through measures such as reducing the density of lighting inworkshops and warehouses, limiting the temperature of air-conditioning, and centralized lighting at night.
New frequency conversion air compressorPure electric forkliftWater cool storage air-conditioning
In 2021, in terms of mobile internet business, we implemented a number of energy-saving improvement plans in the areasof DevOps (automated operation and maintenance) and R&D, to continuously reduce energy consumption. For example,on the side of operation and maintenance, through automation plan for products in online scenarios, we realized automaticcollection, automatic small ow verication and the micro-service as well as automatic elasticity mechanism to reduce resourceconsumption.
Energy-saving o?ceAdopt intelligent collaborative o?ce software andadvocate paperless o?ce, such as collaborativeonline documentation, electronic seal and onlinedocument signing etc.Set the printer to print in black and white on bothsides by defaultEncourage recycling of recycled paper that doesnot contain sensitive information
Create green products
Transsion Holdings is committed to providing environmentally friendly products, incorporating the concept of green andenvironmental protection into the whole-life cycle of products, including raw material procurement, R&D, design, production,packaging, use and recycling, and devotes itself to creating green products.
We optimize raw materials focusing on the packaging used for supply of raw materials, by reducing the proportion oforiginal plastic wrapping materials, and extending the recycling of skids, pallets and other materials;We introduce recyclable grey boards for materials of color boxes, to cut carbon emission from the raw material procurementand design stages;We require suppliers to promise not to use prohibited substances for raw materials, and to sign the Agreement on NotUsing Prohibited Substances in the introduction phase.
Raw material procurement
Use non-hazardous materials and bio-based materials: Taking our imitation leather mobile phone as an example, weuse 100% natural bers as the base fabric material of imitation leather to reduce the impact on the environment after theproduct discarded;In the design of new functions, we take full consideration of the green concept for environmental protection andenergy conservation: We develop and use the passive photochromic technology, which absorbs natural light to producediscoloration, and achieve the e?ect of fashionable appearance with zero energy consumption and zero pollution emissions;Pursue lightweight in the design: Taking the battery cover of the mobile phone as an example, we reduce its thicknesswherever possible through existing technology, reducing unnecessary excess materials.
We use a large number of spray-free materials for the mobile phone case, which eliminates the painting process, e?ectivelycontrols the production of volatile organic compound (VOC), and reduces the emissions of harmful gas and waste water;We increase the use of recyclable materials, using a large amount of secondary materials as xtures during production.
“Trade-In” activities
We optimize packaging design to minimize the use of packaging consumables;We use materials that can be recycled such as cardboards, cartons, plastic woven bags, foam, and pearl wool bags, andtry to avoid the use of plastic materials;We collect and sort waste packaging materials, which will be recycled by qualied resource recyclers.
We have laboratories for reliability and safety test, and products undergo stringent tests before delivery;Products have no surface additional process, are good in anti-broken performance and weather resistance, and their coloris not easy to fade;We select long-life materials for batteries, and impose environmentally friendly, recyclable, ame-retardant requirements toprolong the service life of batteries;We continuously provide product support, regularly update systems and software. When a product needs repairing, thecustomer service center will provide the repair service.
Promote the recycling of discarded mobile phones: We carry out recycling and trade-in services in thousands of stores(including sales stores and Carlcare sites) in Nigeria, Kenya, Tanzania, India and other countries. The recycled devices willbe properly treated through environmentally friendly treatment, and other methods.
Product design
Product production
Product packaging
Product use
Product recycling
We extend the application of spray-free materials. While such materials can achieve similar e?ect of spraying, wecan eliminate the painting process, and reduce the emissions of harmful gas and waste water. Meanwhile, thespray-free materials can be shaped primarily and achieve rich color, good gloss on the surface, diverse e?ects(metal, ceramic, crystal, pearlescent, icker, etc.) and various textures. The spray-free material project can notonly meet the demands of consumers for appearance, reduce process production links, decrease product cost, butalso make a contribution to environmental protection.
Application of spray-free materials
Environmental protectionE?ect diversicationNo VOC generation, nospraying of harmful gas orsewage discharge
● Metalloid e?ect
● Ceramic e?ect
● Crystalline e?ect
● Pearl-like e?ect
● Glittering e?ect
Improving manufacturingand energy e?ciencyReduced production processes,and saving industrial resources
recyclableCost reductionInjection molding takes only oneoperation, and colorful appearance
e?ects can be achieved withoutthe need for surface processing
High durability
Quality performance
● Drop-resistant
● Weatherproof
● Colorfast
● Trend
● Technology
● Fashion
Employment of Transsion Holdings in 2021
By gender
Employee interests protection
Transsion is deeply aware that talents are the power of enterprise development. We strive to create a safe, healthy, equal andinclusive work environment for the employees. Transsion strictly complies with the Labor Law of the People’s Republic of China,the Labor Contract Law of the People’s Republic of China, the Minors Protection Law of the People’s Republic of China, Provisionson the Prohibition of Using Child Labor and other laws and regulations, fully respects the applicable laws and regulations of theCompany’s operating places and the international practices, and formulates talent management processes, policies and measurescovering multiple aspects such as employee recruitment, employment, and compensation and benets, etc.Legal employment
Talents are the cornerstone of enterprise development. Based on the demands of strategic plan and business plan of Transsion,we formulate recruitment tasks and goals that cater the enterprise development, and take such tasks and goals as the budgetbasis of talent recruitment demands to further promote the implementation of relevant recruitment policies. We standardizerecruitment process through the recruitment management system, and recruit talents through various channels such as socialrecruitment, campus recruitment and internal recommendation. In addition, we also reached cooperation with a third-party talentmanagement platform to establish a recruitment management system specic to Transsion, build a dynamic and circulating talentpool, and fully integrate and retain candidate resumes, in order to conduct deep mining of talents and ensure the security andstability of the recruitment system.
As of December 31, 2021, Transsion employed 16,095 people worldwide, including personnel in production, sales,R&D, nance and administration.
11,227
7,453
6,852
6,741
1,3994,868
8,6427,842
1,401
7,955
Social recruitment:
Transsion worked with many recruitment platforms and industry resource channels, including51job, Liepin and LinkedIn, to introduce middle and senior management personnel with excellentbackground and rich experience.
Female
Top Graduate Employers
51job.com & yingjiesheng.com
China Talent Management
Mechanism Example
Beisen & Beisen Research
of Talent Management
Honors for 2021
Honors of Transsion in talent development in 2021
Campus recruitment:
Through the Rookie Plan and Gyrfalcon Plan, we recruit excellent graduates. In the 2022 AutumnCampus Recruitment Project of Transsion Holdings, we signed contracts with a total of 814 studentsat home and abroad in 2021.
By educational background
By ageBy region
MaleJunior college and underUndergraduatePostgraduate and above
Aged 29 and underAged 30-39 Aged 40 or aboveChina (including Hong Kong, Macao and Taiwan)Overseas
Guangdong OutstandingEmployer of the Yearliepin.com
“King’s Ark” Best Employer in Talent Care
zhipin.com
Best Talent Acquisition Team
In terms of the working hours of employees, Transsion has stipulated working hours in the Employee Handbook, the AttendanceManagement Regulations and the Labor Contract, and the Company shall not force employees to work overtime. The Companyapplies standard working hour system at the headquarters, while the domestic and overseas o?ces can exibly adjust theirworking hours according to the actual situation without violating local labor laws and relevant regulations, and report to the HRCenter.We respect and protect human rights in the global operations. Based on the principles of the Labor Law of the People’sRepublic of China, the Law on the Protection of Minors and other regulations, Transsion has developed the Corporate SocialResponsibility Statement, the Employee Handbook, etc. The Corporate Social Responsibility Statement undertakes that wecomply with the national laws and regulations on labor, health and safety and other social responsibilities, and abide by therelevant standards recognized internationally and other applicable industry standards and international conventions.
Human rights protection is the minimum standard for providing an equal working environment. We make the
following human rights protection commitments in the Social Responsibility Statement and the Employee Handbook.
The commitments are applicable to all directors, managers and employees of Shenzhen Transsion Holdings and
its subsidiaries and branches, whether they work for the Company on a full-time, part-time or otherwise temporary
basis.
Free Employment:
Not to employ labor who is forced, mortgaged (including debt-expiated), indentured or unwilling; not be enslaveor sell labor. It is forbidden to ask employee to pay the deposit or to leave the identity card in company;employees shall not be forced to work overtime.Non-discrimination:
We promise to protect our employees from harassment and illegal discrimination; the recruitment, wage, trainingopportunity, promotion, working arrangement (including working overtime) and dismissal are based on the abilityof employee and the need of position. We are against and shall never allow any discriminations related to race,social class, nationality, religion, disability, gender, sexual orientation, union membership and politics status.Compensation and Welfare:
The Company pays the employee according to local laws and regulations and the wage should not be below theminimum wage standard. The salary detail should be listed clearly through the les, and corresponding holidays,wages, overtime pay as well as insurance should be provided.Prohibit Child Labourer:
It is prohibited to employ child labourer in any section of manufacturing. All the employees must be over theage of 16. Employees under the age of 18 shall not be arranged to do works which may endanger the health orsafety of juveniles.Freedom of Association:
The Company respects the freedom of association. Employees have the right to join unions freely; unions cannegotiate with the Company on behalf of the employees.Humane treatment:
Treat employees in a human way. Any kind of sexual harassment, sexual abuse, physical punishment, physicalor mental oppression, verbal abuse and the threat of violence against our employees are forbidden.
Privacy protection:
Employees’ personal privacy is condential and shall not be disclosed by anyone without the employee’s orrelevant authorization.
The human rights protection commitments of Transsion Holdings
In 2021, there were no major personnel changes, no major labor disputes and no complaints on human rights.Democratic communication
Transsion Holdings attaches importance to the opinions from employees, and has established various communication channelsto address their demands promptly and safeguard their rights to know and participate.
We attach great importance to communication with our employees, set up diverse communication channels, and promote anopen and democratic communication atmosphere within the company through the internal communication channel, “TranssionKnows” platform and its operation principle of “no deletion of posts, respect every voice of employees”; we promote directcommunication between the management and the grassroots employees and timely response to employees through diversiedapproaches like promoting discussion and dialogue at all levels, monthly meetings between departments, new employeecommunication meetings and trade unions. We also respect employees’ advice and suggestions, respect employees’ willingnessto participate in company management and construction, and investigate their positivity and motility, enhancing their sense ofbelonging.Transsion Holdings has set up a trade union to protect the legitimate rights and interests of all employees in accordance withthe law. The trade union has formulated the Management Policy of the Trade Union Committee of Shenzhen Transsion HoldingsCo., Ltd. to participate in the formulation of corporate democratic resolutions related to the vital interests of employees fromthe perspective of employees, and provide suggestions and opinions to the management on strengthening employee diversity,safeguarding employee health and safety, enhancing employee welfare, etc.
Keep communication channels open
Enrich communication contentTranssion has set up a HR Business Partner (BP) system, where the BP builds bridges for communicationbetween departments, collects and coordinates various business needs and helps departments improve employeesatisfaction. Employees can not only make requests or suggestions directly through the online Enterprise WeChator Feishu administrative service platform, but also communicate and receive answers to their questions face-to-face through the o?ine service desk for employees.In terms of communication on performance appraisal, employees’ opinions are understood through performancecommunication, and performance communication coaching and attendance system sharing meetings areconducted to deepen employees’ understanding of the remuneration and performance system and help themperform better.In terms of policy communication, we help employees to better understand and safeguard their rights and interestsby conducting policy communication sessions on various topics such as social security, housing provident fund,settlement policy and the Company’s commercial insurance. Transsion has opened multiple communicationchannels such as communication workshops at the theory-discussing meeting and forums for new employees tounderstand employees in a targeted manner, actively listen to their opinions and build a smooth communicationbridge between the management and employees.
Compensation and benets
We comply with the Labor Contract Law of the People’s Republic of China, the Special Provisions on Labor Protection forFemale Employees, the Social Insurance Law and the local regulations, and have formulated the Measures for EmployeePerformance Management and the Measures for Compensation Management, which set the principles of ranking by post,paying by ability and rewarding by performance.
In terms of compensation and performance, Transsion has formulated the Measures for Compensation Management applicableto employees of Transsion Holdings and its subsidiaries and branches, providing a market-competitive compensation packagefor all employees, including fixed and variable compensation. We follow the principle of “equal pay for equal work”, anddetermine salaries based on post requirements and employees’ individual abilities, regardless of gender, ethnicity, religion,political stand, marital status and other factors. We adhere to a compensation strategy of putting employees’ performance rstwhile taking into account the spirit of hard work and innovation, and favoring key positions.We conduct regular performance appraisals, establish appraisal criteria from company development, employees’ individualperformance, work ability, potential and other aspects, and determine the appraisal cycle according to the needs in di?erentdevelopment stages and the responsibilities of each department, which is divided into quarterly, semi-annual and annualappraisals. After the performance appraisal of employees, the Company conducts enhanced incentives and improvementguidance through interviews and provides feedback on employees’ performance. If the appraisee holds an objection, he/shecould attempt to resolve grievances with his/her immediate supervisor. In the event the attempts to resolve the grievance are notsuccessful and the appraisee wishes to pursue the matter, he/she could present the grievance in writing to the HR Center. Weguarantee that the employees will receive e?ective feedback and timely response to their opinions.
Compensation and performance
The Company provides a number of benets for employees, and has purchased commercial insurance for employees, as wellas overseas commercial insurance for employees based overseas and on an overseas business trip.
Benets
Mandated
benets
BasicbenetsIn accordance with nationalor local regulations, weprovide our employees with:
National statutory holidaysSocial insurance, includingbasic pension insurance,medical insurance,unemployment insurance,work-related injuryinsurance, etc.Housing provident fundOther statutory employeebenets
Leaves other than statutoryholidays, including sick leave,work-related injury leave,personal leave, marriageleave, condolence leave,prenatal check-up leave,maternity leave, paternityleave, breastfeeding leaveand annual leaveHoliday cash gifts or presentsfor traditional festivals suchas Chinese New Year Festivaland Mid-Autumn FestivalCash gifts or presents foremployee birthdayMeal allowanceCommunication allowance
Specialbenets
Work-related injury insuranceCommercial insuranceAccidental injury insuranceExpat subsidies
Employees enjoy:Employees who meet
conditions can enjoy:
Transsion employees around the world
Employee care
Transsion always adheres to the people-oriented principle, creating a joyful working environment for employees and helpingbalance their work and life. We care for special employees and are committed to focusing on the needs of every employee,while setting up barrier-free toilets, mother and child rooms, gyms and other public facilities in the o?ce building. The Companyirregularly organizes various cultural and sports activities for employees, and sends heartfelt wishes on various festive days;besides, based on the principle of “whoever is interested is in charge”, the Company established a variety of employee interestclubs initiated and operated by employees with material support from the Company, e?ectively enhancing the happiness andsense of belonging of employees.Transsion Holdings has formulated and released the Management Measures for Employee Mutual Aid Fund and established the“Love from Transsion” employee mutual aid special fund, aiming to provide assistance to its employees with treatment di?cultiesdue to serious diseases or accidents. In 2021, a total of RMB900,000 was distributed from the “Love from Transsion” mutual aidfund.
3.8 Activities for International Women’s DayActivities for Chinese Valentine’s Day
Female colleagues were provided with asurprising gift (dessert, flowers, handmadegifts, etc.) on the day, and male colleagueswere organized to deliver festive care andwishes to female colleagues.
Transsion advocates employees to expresstheir love. On the day, Transsion helpedemployees to contact their family members,friends and lovers to express their love throughinterviews and set up a craft workshop to inviteemployees to make Chinese Valentine’s Daygifts by themselves, allowing employees tofeel care from the Company and their relativesto feel loved by the employees.
Transsion Craft Competition at Dragon Boat FestivalTranssion Fete on New Year’s Day
Activities for Mid-Autumn FestivalProgrammer’s DayTranssion collaborated with the flowerarrangement club to hold a mid-autumn feastfor enjoying flowers and tea. Employeesactively participated in the ower arrangementactivity to bring colleagues closer to eachother. The nished products were displayed inthe tea break area for everyone to enjoy and avariety of refreshments were provided.
For programmers with irregular work andrest, Transsion provides special care to ITemployees. The Company arranged forprofessional hairdressers to provide freeservices for IT employees on the day.
Activities on Programmer’s DayRiddle Guessing at Mid-Autumn Festival
Annual Kick o? MeetingRewards at the Annual Meeting
Employee training and developmentBy implementing career management and establishing a “dual-channel” promotion mechanism, Transsion has achieved multi-dimensional development of employees through management and professional channels in parallel. In the meantime, by virtueof a plenty of training resources of Transsion College, we help our employees improve their professional ability and careercompetence, providing a wide space for their career development.Talent developmentThrough the establishment of the Transsion College responsible for overall planning of the training and development ofemployees, Transsion has built a three-level management structure of “company – department/division – third-tier department”,with managers at all levels being responsible for the training of their teams.Transsion has developed a comprehensive development plan for talents at different levels, and boosts the development ofreserve talents; we assign new employees a career mentor who pays close attention to the employee’s work status and providesnecessary guidance at any time.Since 2019, Transsion Holdings has explored the talent development mode of “integration of selection and training” for thecultivation of “core talent” reserve force by combining the development needs and practices of the Company. Beneting from thetalent development project, trainees can maintain timely communication with company executives and obtain e?ective feedbackthrough face-to-face communication with company executives, so that trainees can be guided in their development directionand improvement space more pertinently. In 2021, we replicated this talent training mode in the development of various keytalents such as product managers and country managers. As of the end of December 2021, a total of more than 240 traineesparticipated in the training program.Talent development plan of Transsion:
Talent development plan for fresh graduates:
Rookie Program for Fresh Graduates, Gyrfalcon Program for Management Trainees, Blue Bird Program for InternsLeadership development program:
Eagle Program for grassroots managers, Leading Eagle Program for middle managers and Future Leaders TrainingCamp for reserved senior managersKey talent development program:
Product Manager Training Camp, National Manager Development Training Camp, Local Talent Development TrainingCamp, Supply Chain Elite Development Training Camp, Financial Reserve Talent Management Training CampFor all employees:
We have set up the Transsion E-learning System (TES) and Transsion Hall to share generic skills and technologies,and each department also has internal sharing mechanisms focusing on experience sharing and knowledgeaccumulation in business areas
Talent replication
Key talent pool
National
brandmanagerLeadingtalentSupplychainmanager
Local retailmanager
Localmarketingmanager
Productmanager
R&Dmanager
Instructor
Coursedeveloper
CoachMentor
Foster suitable demand
Form: courses, cases, experience articles, etc.
Extractor...
Knowhow
Demand scene
Production Line for Talent Replication
Training System of Transsion
Enabler
Production lineExternally genericInternally exclusive
New cadres
New employee
Rookie
Training for newemployees from socialrecruitment
Leading eagleEagle
Development (selection and training integration) - Connection(create an atmosphere, build a platform,strengthen both supply and demand, accumulate organizational capacity)
Diversied training
School-enterprise co-development
We are committed to building a comprehensive training system to provide targeted training for employees in di?erent positions,consolidate their business foundation, and enrich and enhance their professional skills. We have formulated policies such asthe Training Management Measures and the College Annual Training Plan to coordinate the Company’s training plans, manageprogress dynamically through TES, clarify the training operation procedures and instructor responsibilities, and establish asound training management mechanism.
Transsion deeply understands that, in the eld of mobile communications and the Internet, the core of enterprise competitionlies in the competition for cutting-edge technology and talent. We have entered into industry-university-research cooperationagreements with Chongqing University of Technology, Chongqing University of Posts and Telecommunications and otheruniversities to develop in-depth cooperation in talent training, technological cooperation, and talent exchange and supply.Based on the cooperation framework, Transsion and the universities have given full play to respective technical and resourceadvantages, and focused on the fields such as mobile phone product hardware, software, mobile Internet and artificialintelligence, to carry out cutting-edge exploration and gradually build an industry-university-research cooperation system,establishing a long-term and stable partnership.We have also teamed up with the School of Asian and African Studies of Xi’an International Studies University to explore newmodels of school-enterprise cooperation and strengthen all-round school-enterprise cooperation in professional exchange,student practice and graduate employment.We expect that deepening school-enterprise cooperation will help Transsion strengthen its R&D deployment, target marketdemand and opportunities, and continuously enhance the product value, while creating a healthy ecosystem for talentdevelopment to empower business development.
In 2021, we developed the College Product Manual by incorporating the internally deliverable products of Transsion Collegeto deepen business departments’ understanding of the College, revitalize workshop turnover and further develop trainingresources. We also exibly used the TES platform, the Transsioner Knowledge Base and Transsioner Community Operationsto complete the learning closed-loop of “test-learning-practice-examination-assessment”, and empowered BPs and learningactivists in departments who are willing to act as a guide to undertake the operation of online ipped classrooms. To cater fordi?erent user groups such as Chinese parties, overseas local retail lines, factories and third parties, we have also designed a52-week TED Presentation reading program called “Learn TED on TES”. In 2021, Transsion had set up and implemented 71training courses.In addition, Transsion supports employees to pursue skill improvement and career development by encouraging them toobtain educational upgrade and qualications on the job through continuing education based on their professional background.Transsion has formulated the Training Management Measures to encourage employees to participate in training programsrelated to their job skills improvement and provides assistance such as expense reimbursement. We have formulated theManagement Measures for Advanced Study of Company Executives to provide support for the advanced study for degrees suchas MBA. The Company provides company executives with assistance including study resources recommendation and partialreimbursement of tuition fees. For language learning, we have formulated the Implementation Rules for Foreign LanguageLearning Incentive, reimbursing expenses such as the examination registration fees for English, Arabic, French and otherlanguages required for the current business, in a view to encouraging employees to improve their foreign language skills.
TES serves Transsion's busi-ness needs at all levels. Thesystem is operated by Trans-sion College, operated andmaintained by the Processand Information Center, withthe HR Center and Trans-sion College jointly providingconstruction support. It is aself-developed mobile learn-ing platform covering Trans-sion’s entire business. Theplatform has launched specialcourses such as online studyclasses & operation empow-erment of “The McKinseyWay”, “Learn TED on TES”and “New Manager GrowthCamp” to meet employees’learning needs.
TESO?ine training workshopsCorporate culture publicity
To meet the needs of diverse learningscenarios of business departments,Transsion College has launched work-shop programs that can be delivered byinternal teams. For example, the “ThreeAxes Workshop” condenses businesspractice and management into a three-day immersive learning scenario toconvey corporate culture values andleadership; the “90-Day TransformationProgram for New Cadres” helps cadresquickly adapt to the transition to newpositions, while assisting HRBP in in-troducing integration procedures andtools for new cadres in the businessdepartments. The “Team IntegrationWorkshop” motivates members to beself-driven in achieving team goalsand pathways. There are also “CourseDevelopment Workshop” and otherface-to-face courses on special topics.Transsion endeavors to stimulate thelearning motivation and inner potentialof learners based on real needs toguarantee the internal talent supply fororganizations.
We have successively organized 25culture seminars, inviting employeesfrom different businesses, functionsand levels to express and exchangetheir true ideas via open workshops,to allow the Transsion culture to takeroot in the knowledge, belief andbehaviors of Transsioners; We haveset up a special course of culture tourfor new employees to experience theTranssion style with fun and attitudeat the induction; We have created 6IPs of Transsion values and, with thehelp of peripheral carriers of “CultureCreativity π”, integrate them intoemployees’ daily work and life andspread the corporate culture to everycorner; We have called on and run aculture ambassador team consistingall business departments to embedthe culture into business and nurturethe culture with business through thetwo-way idea of empowerment andpractice, and to continuously intensifythe core of Transsion culture.
2021 Environmental, Social and Governance Report
Shenzhen Transsion Holdings Co., Ltd.61
Reasonable promotionTo ensure fair promotion of employees is an important factor for the stable development of an enterprise. Transsion Holdingshas formulated the Promotion Program of Professional Serial Certication, the Cadre Promotion Program and other system tostandardize and guide the promotion management, and adheres to the promotion principles of “fairness and impartiality, scienticselection and merit-based admission” to select talent in line with the Company’s culture and team development needs. TranssionHoldings is committed to boosting a promotion mechanism with clearer appointment and promotion requirements and a morespecic bottom line, selecting on merit and ensuring a smoother development channel for employees with outstanding performanceand ability.Promotionmechanism
Cadres are required to undergo assessments such as the leadership assessment and defenses,demonstrate their work results, receive the audit by judges and review for certication, and be subjectto supervision by all employees in the department before they are promoted. If there are no objections,their promotion will be submitted to the Company for approval.
Employee incentivesIn order to shape and motivate the entrepreneurial spirit of Transsioners, Transsion implemented the 2020 Restricted ShareIncentive Scheme in accordance with the requirements of relevant laws and regulations, including the Administrative Measuresfor Equity Incentive of Listed Companies, and completed the initial grant of 6.21 million restricted shares to 294 incentiverecipients in July 2020 and the grant of the reserved 1.45 million restricted shares to 134 incentive recipients in June 2021.
For employees with high value contributions, Transsion provides them with market-competitive remuneration rewards to attractand retain the Company’s core talent through diversified and differentiated incentive mechanisms. In 2021, the Companymade a corresponding provision of the medium- and long-term incentive fund in accordance with the relevant provisions of theMeasures for Medium- and Long-term Incentive Management.
Di?erentiated Incentive Mechanisms of Transsion
Set short-term incentivesfor front-o?ce businesspersonnelSet di?erent types of othershort-term incentives basedon the stage of businessdevelopment and needs ofeach department
Front-o?ce business personnelKey personnel of the CompanyR&D personnelDevelop medium-termincentive plan for keypersonnel and other sta?of the Company
Set project incentives forR&D personnel
Nine-in-One Leadership Training
In 2021, Transsion Holdings conducted 16 leadership training sessions for the Company’s M1/M2/M3 cadregroups. Led by the Organizational Development Group of the HR Center, a seminar was held to promote theTranssion nine-in-one leadership model and help cadre candidates understand the Company’s training objectives,training requirements and specic behavioral guidelines for cadres.
“Nine-in-One Leadership Training” Scene of Transsion
Appraisalcriteria
Supervisionof promotion
Transsion has developed tailored promotion programs for di?erent targets, such as professional serialpromotion and cadre promotion, and the main factors to be considered include performance and workingability.
Transsion has implemented a “dual-channel” mechanism, with management channel and professionalchannel in parallel to achieve multi-dimensional development of employees.
incentiverecipients in July 2020
completed the initial grant of
6.21
million restricted shares
the grant of the reserved
1.45
million restricted shares
incentiverecipients in June 2021
Ensure occupational safety and health
Employees are required to strictly complywith labor discipline, work safety rules andregulations, operating guidelines on worksafety, etc.
Occupational health and safetyTranssion Holdings strictly complies with the laws and regulations such as the Work Safety Law of the People’s Republic ofChina, the Law of the People’s Republic of China on Prevention and Control of Occupational Diseases and the ManagementMeasures for the Production Safety Accident Contingency Plan, and has formulated internal policies such as the Regulationson the Management of Environmental Safety in O?ces, which provide specic regulatory guidelines on the safety and health ofemployees.
Standardizing operating requirements:
Transsion takes corresponding measuresto ensure that the workplace complies withregulations in terms of drinking water, san-itation, re safety, lighting, and ventilation,providing a healthy and safe working andliving environment for employees.
Providing a safe environment:
Transsion equips employees with the laborprotection supplies required for their workand regularly distributes necessary pan-demic prevention materials to employeesduring the pandemic.
Furnished with safety equipment:
Transsion pays attention to the health ofemployees and organizes regular healthcheck-ups.
Regular health check-ups:
Employees are encouraged to participatein regular club activities organized by theCompany such as fitness, swimming,badminton, tennis and basketball. Morethan 30 events were held by major clubsin 2021, attracting more than 2,500 partic-ipants, and the Company also has a gym,yoga room and other activity spaces.
Organizing healthy sports activities:
Transsion Holdings, Shenzhen Tecno andChongqing Transsion Technology havebeen awarded the Occupational Health andSafety Management System Certicate.
Certication:
Transsion Holdings ISO 45001 CerticationShenzhen Tecno ISO 45001 CerticationChongqing Transsion Technology
ISO 45001 Certication
Transsion Basketball MatchTranssion Tennis Match
Transsion Holdings Held a Fire Safety Drill
In November 2021, the Administration Department, in conjunction with safety o?cers from all departments, set upa re safety drill coordination group and held a re safety drill for all employees at the o?ce building of TranssionHoldings in Shanghai. Through this training and drill, Transsion strengthened employees’ awareness of re safety,helped them further master the skills of re evacuation and escape and extinguishing early res, and enhancedtheir re safety self-rescue ability, building a solid foundation for the re safety development of the Company.
Fire Safety Drill Activities
Transsion Holdings Organizes Employees to Participate in First Aid TrainingIn September 2021, Transsion Holdings cooperates with the Red Cross Society of China Shanghai Branch inorganizing 20 people to participate in the first aid training session based on the principle of equal allocationamong the oors of the o?ce building in Shanghai, with on-site lectures on theoretical knowledge and skills ofcardiopulmonary resuscitation (including automated external defibrillator and foreign body airway obstruction),trauma care and escape from danger.
First Aid Training Site
Focus on safety trainingTranssion Holdings has established a sound EHS management structure and system. It organizes safety knowledge andemergency skills training in accordance with the requirements of laws and regulations and practical needs, deploys emergencymaterials that meet compliance requirements, and organizes regular contingency plan drills of various security themes to ensurethe e?ectiveness.During the Reporting Period, two domestic factories carried out more than 590 training sessions concerning EHS, with morethan 20,000 training attendance, covering 100% factory workers.
Safety Training in Factories
Comprehensive Emergency Drill in Factories
Responsible supply chain management
Suppliers are important partners of Transsion. Transsion and the suppliers jointly comply with the laws and regulations andgenerally accepted international standards or conventions in the places of product manufacturing and operation. To establisha standardized supplier management procedure and system for the Company, we have developed a series of internal policiessuch as the Process for Introducing New Suppliers, Supplier Feedback Management Process, Transsion’s Integrity Statementand Procurement Agreement to shape a healthy and sustainable responsible supply chain. Moreover, Transsion has set up amandatory supplier introduction standard, the Supplier Mandatory Criteria Assessment Form, which clearly sets out the “zerotolerance” criteria related to the environmental and social responsibility of suppliers.
We conduct business reviews through annual supplier conferences and monthly, quarterly, annual and unscheduledcommunications between middle and senior management among suppliers, putting forward green procurement, delivery,technology, quality and other demands and promoting improvement. In 2021, over 140 supplier QBR/YBR (quarterly/annual)communication meetings were completed.In addition, we also publicize and arrange for shortlisted suppliers to sign the Transsion Integrity Statement during supplieraudits, and require partner suppliers to sign the Supplier Integrity and Honesty Commitment Letter and the Declaration ofSupplier Interests in a bid to further strengthen the integrity publicity to suppliers.
During the Reporting Period, we audited all new suppliersto be introduced and suppliers that were on the ApprovedVender List (AVL) to be audited annually, and 100% ofsupplier audit results met internal management standards.
Supply chain management process
Communication with supplier
We have established strict supplier introduction approval criteria to apply corresponding standards to all introducedsuppliers, including but not limited to requiring suppliers to have sound corporate qualifications, matching professionalqualifications and service capabilities, and usually adopt an open platform to provide registration and ensure a fair andtransparent supplier registration process.Transsion has developed the Process for Introducing New Suppliers, requiring new suppliers introduced to enter intoagreements such as the Safety and Environmental Protection Agreement and the Agreement on Not Using ProhibitedSubstances with the Company when new suppliers are introduced. In addition, we have developed a Supplier AssessmentForm - QSA to check suppliers’ compliance in environmental and occupational health and safety to safeguard the greenprocurement from the supply chain and the personal and property safety of laborers, and we will rst select suppliers withexcellent performance.
We conduct regular audits of suppliers’ contract performance and have established audit standards for environmental,fire and safety management of suppliers, including ISO 9000 quality management system, ISO 14001 environmentalmanagement system, ISO 45001 occupational health management system, RoHS hazardous substances managementsystem, conflict minerals management and other standards. In addition, we have developed the Supplier PerformanceEvaluation Process and Supplier Incentive Management Measures to evaluate suppliers in terms of labor management,environmental management and other aspects and provide monetary and honorary incentives to suppliers with excellentperformance in comprehensive dimensions.
Supplier introduction audit
Audit and assessment of supplier’s contract performance
Proportion of suppliers signing the SupplierIntegrity and Honesty CommitmentLetter, Declaration of Supplier Interests100%
“Future Win-Win Chain” Supplier Conference
In October 2021, we held the “Future Win-Win Chain” supplier conference to exchange ideas with partnersparticipating in the conference on “the subsequent strategic development direction of Transsion’s various productbusinesses”, in which more than 200 major suppliers of approximately 80 core components participated.
2021 “Future Win-Win Chain” Supplier Conference
We set up a supplier review panel to conduct strict inspections of suppliers’ qualifications, product quality, socialresponsibility, labor rights and interests, and other areas. We have developed and implemented a Supplier MandatoryCriteria Assessment Form as the assessment criteria to conduct strict assessments on corporate quality systemassessment (QSA), quality process audit (QPA), trade safety and other aspects. Qualied suppliers can be introduced intothe resource pool as reserve.We also actively focus on the practices of suppliers in respect of environmental protection and labor management andadvocate the establishment of e?ective labor, health and safety management systems by them when assessing supplieradmission. We set fully respecting and protecting human rights and “not using child labor and forced labor” as mandatorycriteria for the introduction of new suppliers. If a supplier is found to be using child labor or forced labor, the supplier willnot be introduced as our new supplier. We require compliance in the use of labor, ensure compliance by reviewing thesupplier’s employee list, sampling employee information and employment contracts, requiring suppliers to provide proofof salary payment and interviewing employees, and are concerned about the occupational health and safety of suppliers’employees. We require suppliers to pay basic salary and corresponding benets as required by local laws and regulations,and pay corresponding overtime fees according to local laws and regulations.
Supplier identication and introduction
Responsible procurement
Promote industry development
Transsion follows the strict standards of integrity in all business interactions, prohibits any form of bribery, corruption, extortionand embezzlement of public funds, and adheres to a green and sustainable procurement philosophy to achieve responsibleprocurement.
Transsion continues to keep abreast of the development trends of the industry, attaches importance to exchanges andcooperation within and outside the industry, actively participates in various activities in the industry, and strives to innovateand deliver value with all partners. During the Reporting Period, Transsion actively built platforms for cooperation and sharing,strengthened cooperation with universities, industry associations and other stakeholders while extensively taking active part ininternational cooperation and exchange, and continuously promoted the standardized development of industry technology.
Transsion continues to broaden talent recruitment system by leveraging advantageous enterprise resources to cooperate withwell-known universities at home and abroad in support to the e?cient development of business and achieve a win-win situationwith the academic community. In 2021, Transsion cooperated with the University of International Business and Economics andthe “Postdoctoral Innovation Practice Base” in Pudong New Area, and by virtue of their unique advantages in the introductionand training of talents, promoted the cooperation in technology and projects, accelerated the industry-university-research resultstransformation and the training of innovative talent, and will maintain long-term win-win partnership with the academics in thefuture.Optimize conict minerals management
Green and clean procurement
In terms of conict minerals management, Transsion complies with the conict minerals reporting and other requirements undersection 1502 of the US Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and irregularlyconducts supplier conict minerals survey and collects conict minerals reports from suppliers to ensure that conict mineralsfrom illegal mines are not used in the supply chain. Meanwhile, Transsion has released a statement on conflict mineralsmanagement on its website.
Based on the concept of sustainable development, Transsion regulates green procurement and strengthens the assessmentcontrol of the information about suppliers’ environmental and social factors. Transsion has set up a supplier collaborationplatform, where the environmental protection agreements signed by suppliers and the information related to environment andlabor health and safety involved in supplier audits are available.Transsion focuses on procurement in the sunshine. In 2021, Transsion and its suppliers signed the contractual documents suchas the Supplier Integrity and Honesty Commitment Letter and Declaration of Supplier Interests. Besides, we have providedintegrity clauses in the Procurement Agreement.Suppliers shall guarantee not to promise or agree to provide, or authorize any third party to provide, directly or indirectly,anything of value or improper advantage to our employees and their spouses, their children and children’s spouses and otherrelatives, or other specific/interested parties for the purpose of obtaining other improper business benefits, and not to give,for any reason and in any form, any kickbacks, commissions, gifts or other benets to our managers, employees, agents orother related parties. In addition, Transsion Holdings organizes internal integrity training and publicizes anti-corruption cases tointernal employees and suppliers on an irregular basis.Transsion requires supplier partners to fulll the obligation to inform it in the event of a request for a bribe. In the event of briberyduring the cooperation, Transsion will terminate all cooperation with it, regardless of whether an improper benet is actuallyobtained.
Deepen the industry-university-research-application cooperation system
In December 2021, Shanghai Transsion Information Technology Co., Ltd., a subsidiary of Transsion Holdings, waso?cially licensed as the “Postdoctoral Innovation Practice Base” in Pudong New Area at the Pudong InternationalTalent Hub Forum. At the forum, Transsion launched the rst six projects based on its business landscape. In thefuture, based on the business landscape, Transsion will collaborate with well-known universities at home andabroad, and focus on the local needs of emerging market countries, to carry out cooperation in research areassuch as computer vision, voice conversation and interpretation, NLP, big data artificial intelligence, and wirelesscommunication, so as to further the integration of industry, university, research and application.
In February 2021, the “Transsion China-Africa Economic and Trade Research Center” was officially establishedby Transsion Holdings and the University of International Business and Economics in Beijing. Relying on theadvantageous resources of Transsion and the University of International Business and Economics in the enterpriseand academic communities, the Transsion China-Africa Economic and Trade Research Center gathers a groupof researchers from research institutions, universities, law firms, enterprises and other fields to actively carry outresearch related to China-Africa economic and trade cooperation, enhance domestic scientic research and disciplineconstruction in this eld, strengthen academic exchange and cooperation in African studies at home and abroad, andstrive to become an important base for African studies in China. Moreover, the Research Center will develop top-notch, quality talents of African studies to play a think-tank role in China-Africa economic and trade cooperation.
Transsion Holdings joined in the “Postdoctoral Innovation Practice Base” in Pudong New Area
Transsion Holdings Cooperates with University of International Business and Economics to Establishthe China-Africa Economic and Trade Research Center
Licensing Ceremony of the Postdoctoral Innovation Practice Base in Pudong New Area
Engage in industry conversations and exchanges
Advance the development of industry standards
TECNO, a mobile phone brand of Transsion, and Counterpoint, a third-party industry analyst, held the "2022 GlobalMobile Phone Imaging Technology Outlook - Industrial Innovation Conversation" to explore the development ofmobile phone imaging technology and future trends.Innix, a mobile phone brand of Transsion, formed a partnership with the Royal Observatory Greenwich, London, tohelp people better understand and explore the universe.
Transsion Holdings has vigorously expanded cooperation areas and promoted diversied strategic cooperation featuring mutualcomplementarity. In 2021, many brands of Transsion Holdings conducted cooperation with third parties.
We actively promote relevant standardization research, continue to enhance Transsion’s inuence in international organizationsfor standards, and cooperate with ecological partners in the industry to contribute to the development of the industry. Over theyears, Transsion has developed a long-term R&D plan around the mainstream industry trend of computational photographytechnology and product applications, and continued to increase investment in technology R&D. Transsion has also exportedresearch results through standardized methods to establish a deep connection between R&D and industry.
In April 2021, the Study Group 16 of the InternationalTelecommunication Union (ITU-T SG16) held a plenarysession, and Transsion led and cooperated with the BeijingUniversity of Posts and Telecommunications to submit threestandard proposals, including the Processing Procedureand Metadata Denition for Mobile Terminal ComputationalPhotography System, Multi-Camera Domain Data Acquisitionand Labelling for Automatic White Balance Enhancementin Mobile Terminal Computational Photography System andAesthetic Metadata for Image Aesthetic Evaluation in MobileTerminal Computational Photography System, all of whichwere formally approved, marking the further improvementof the international standard system for mobile terminalcomputational photography.
A Number of International Standards Led by Transsion Are Approved by ITU-T, Deepening theEstablishment of an International Standard System for Computational Photography
Transsion deepens the establishment of an international
standard system for computational photography
Transsion’s Mobile Phone Brand – Innix established a partnership with the Royal ObservatoryGreenwich
In September 2021, Infinix, a mobile phone brand of Transsion, announced a corporate partnership withthe Royal Observatory Greenwich, London, and donated more than 110,000 US dollars to Annie MaunderAstrographic Telescope, an observation apparatus of the observatory, to help people better gain inspirationand explore the universe through technology.
Royal Observatory Greenwich (News release pictures for Innix) Annie Maunder Astrographic Telescope
Share New Opportunities in African Digital Economy and Explore the Road to Africa for InternetAudio & Video ContentIn June 2021, the Internet Audio & Video InternationalCommunication Forum, sponsored by the Departmentof International Cooperation of the National Radio andTelevision Administration and organized by mgtv.com, washeld in Chengdu. Transsion Holdings was invited to sharethe profound insight and experience in the development ofthe African market, the current status of digital developmentin Africa, and the business landscape of Transsion’s smarthardware terminals and mobile Internet.With the acceleration of Africa’s digitalization and theofficial launch of the African Continental Free Trade Area(AfCFTA), Africa will release a gigantic regional value, whilea huge demand for content consumption from local Africanresidents will attract more Chinese teams with aspirationsto go to Africa. Transsion is committed to empowering manypartners who want to enter the African market through thecreation of an innovation platform, promoting China’s high-quality audio and video content and IPs to go global andbecoming an important channel for them to go global.
Transsion Holdings was invited to attend the InternetAudio & Video International Communication Forum
Rural revitalization
As China declared comprehensive victory in the tough battle against poverty, rural revitalization has become an importantstrategy to continue to promote the development of rural areas and the increase of people’s income. As an enterprise with asense of social responsibility, Transsion has always attached great importance to promoting local industry development andincreasing people’s income to make them rich through corporate development. After the national rural revitalization strategywas put forward, Transsion took active actions to deeply assume corporate social responsibility by combining consumptionassistance with targeted poverty alleviation based on the business landscape.“Gather Transsion’s power to fuel up rural revitalization.” In 2021, in active response to the national strategy, Transsion Holdingslaunched a special plan for “rural revitalization”. In terms of consumption assistance, Transsion helped Chengkou County inChongqing City, Longsheng Various Nationalities Autonomous County and Ziyuan County in Guilin City, Guangxi Province;in terms of targeted poverty alleviation, Transsion supported Nongping Village, Simeng Town (Township), Donglan County,Hechi City, Guangxi Province. Through these e?orts, Transsion deepened the partnered support mechanism, consolidated andexpanded the achievements in poverty alleviation and e?ectively promotes the rural revitalization.
In 2021, Transsion Holdings helped Chengkou County in Chongqing City, Longsheng Various NationalitiesAutonomous County and Ziyuan County in Guilin City, Guangxi Province by purchasing a total of 4,830 sets ofagricultural products for the year, e?ectively boosting local industries.
Consumption Assistance Contributed to Rural Revitalization
Transsion Helped Chengkou County in Chongqing City by Consumption
Transsion Helped Longsheng Various Nationalities Autonomous County in Guilin City, Guangxi Province by Consumption
Transsion Helped Ziyuan County in Guilin City, Guangxi Province by Consumption
Transsion helped Longsheng Various Nationalities Autonomous Countyand Ziyuan County in Guilin City, Guangxi Province by consumption,and was thanked by the leadership group of counterpart assistance ofNanshan District, Shenzhen City for supporting rural revitalization
Transsion helped Chengkou County in Chongqing City by
consumption, and was thanked and recognized byChongqing Liang Jiang New Area
Adhering to the philosophy of "Together we can", Transsion takes an activepart in public welfare undertakings, keeps up with the national developmentstrategies, positively assumes corporate social responsibility, and continuesto create a positive impact on the local communities. In 2021, the totalamount of external donations and investment in rural revitalization byTranssion was about RMB3.97 million.
In 2021, the total amount ofexternal donations and investmentin rural revitalization by Transsionwas about RMB
3.97
million
Public welfare and charity“Practice corporate social responsibility and give back to the local community in Africa” and “Be a brand with care”. All mobilephone brands of Transsion help the local disadvantaged, support education with technology and ght the pandemic throughmaterial/fund donations in the places where they operate.
In 2021, in order to provide better learning resources for children in Africa, itel, a mobile phone brand ofTranssion Holdings, o?cially launched the Little Library Program, aiming to build 1,000 itel Little Libraries inAfrica.In September 2021, the Little Library Donation Program was rst implemented in three schools in Nigeria;in October, the second phase of the program was implemented in a school in Rift Valley Province, Kenya,where itel brought them thousands of books, as well as laptops, tablets and other learning aids andpandemic prevention materials. By the end of 2021, itel Little Library Program had been successfullyimplemented in seven countries in Africa, with 210 Little Libraries set up in di?erent local schools, benetingmore than 32,000 students.In 2021, itel’s Little Library Program received the GMYT African Humanitarian Awards in recognition of itel’scontribution to the local in CSR projects.
Little Library Donation Program of Transsion’s Mobile Phone Brand - itel
Little Library ActivitiesLittle Library Program Receives the
GMYT African Humanitarian Awards
itel went to a school a?ected by the re in Niger
Fire is ruthless, but itel has love! itel went to a school a?ected by the re in NigerIn May 2021, itel, a mobile phone brand of Transsion, joined hands with local distributor YDE to carry outthe “Love Always On” public welfare action in a primary school severely affected by the fire in Niamey,Niger, sending its most sincere greeting and care to the teachers and students of the school and donatingurgently needed materials including textbooks, school supplies and teaching aids, to help teachers andstudents recover from the re and tide over the di?cult times.
“Smile” Volunteer Activities in the Local SOS Children’s Village in Lahore, Pakistan
“Smile” Volunteer Activities of Transsion’s Mobile Phone Brand - InnixIn July 2021, Infinix visited the local SOS Children’s Village in Lahore, Pakistan, and distributed giftsthrough care activities themed with “Smile” to convey positive energy.
In August 2021, cooperating with local philanthropic organizations in the Philippines, TECNO donatednearly 100 TECNO mobile phones and cash to urban pandemic relief organizations and poor studentsin the Philippines. TECNO actively assumed social responsibility, and helped groups in need to improvecurrent life with love and technology in combination.
For the 2020/21 English Premier League season, TECNO partnered with Manchester City Football Cluband GOAL, the world’s famous football media, to launch a four-month “Go For Great” Dream Project ofSports Trainee Reporters, providing young people aspiring to sports journalism with an opportunity to coverthe hottest events of Manchester City and become a sports reporter.
In 2021, TECNO, in partnership with Manchester City Football Club and local NGO Fútbol Con Corazónin Columbia, launched the Cityzens Giving community integration project, which successfully trained 80young leaders to reach out to local communities in Colombia and provide services to and interact with localchildren and families, including football training, technology and health popularization. The project lastedfor six months. By virtue of the charm of football and the power of mobile technology, the project continuallyspreads positive energy and promotes the physical and mental health of children, contributing to thereduction of local low-age crime and drug addiction, and alleviating the di?culties of local children who dropout of school due to the pandemic. The project has beneted over 1,000 children and their families in morethan a dozen local communities in Colombia.
Donation of Mobile Phones to Help Groups in Need Improve Current Life by Transsion’sMobile Phone Brand - TECNO
Transsion’s Mobile Phone Brand - TECNO Launched the “Go For Great” Dream Project ofSports Trainee Reporters with Manchester City Football Club
Transsion’s Mobile Phone Brand - TECNO Partners with a Local NGO in Colombia for aCommunity Integration Project
Mobile Phone Donation Activity in the Philippines
Football Carnival Activities in Communities
Activity of Dream Project of Sports Trainee Reporters
Cityzens Giving Community Integration Project
Eargasm For Charity Concert
Eargasm For Charity is a concert hosted by African star Innocent Ujah Idibia (alias 2Face or 2baba),aiming to raise funds for the 2baba Foundation’s humanitarian projects. This project was intended to raisefunds for establishing a standard modern music recording studio in Obafemi Awolowo University. In termsof supporting African music, oraimo and its spokesperson 2baba coincide with each other. They not onlylaunched headphones specially tuned for African music, but also sponsored the charity concert to supportthe development of more new music talent in Africa.
Transsion’s Mobile Phone Brand - oraimo Sponsored the Concert of Eargasm for Charity toSupport Music Development in Africa
GRI IndicatorIndicator DescriptionSection
Organizational
prole
102-1Name of organizationAbout this Report102-2Activities, brands, products and servicesAbout Transsion102-3Location of headquartersAbout this Report102-4Location of operationsAbout Transsion102-5Ownership and legal form/102-6Markets servedAbout Transsion102-7Scale of organization
Responsibilities for
employees102-8Information on employees and other workers
Responsibilities for
employees102-9Supply chainPartner responsibility102-10Signicant changes to the organization and its supply chainPartner responsibility102-11Precautionary principles or approachNot applicable102-12External initiativesNot applicable102-13Membership of associationsNot applicableStrategy
102-14Statement from senior decision-maker
Message from
Chairman102-15Key impacts, risks and opportunitiesOperation responsibilityEthics and Integrity
102-16Values, principles, standards and norms of behavior
About TranssionOperation responsibility102-17Mechanisms for advice and concerns about ethicsOperation responsibility
Governance
102-18Governance structureOperation responsibility102-19Delegating authorityOperation responsibility102-20
Executive-level responsibility for economic, environmental andsocial topics
Operation responsibility102-21
Consulting stakeholders on economic, environmental and socialtopics
Operation responsibility102-22Composition of the highest governance body and its committees Operation responsibility102-23Chair of the highest governance body/102-24Nominating and selecting the highest governance body/102-25Conict of interestNot applicable102-26
Role of highest governance body in setting purpose, values andstrategy
About Transsion102-27Collective knowledge of the highest governance body/102-28Evaluating the highest governance body’s performance/102-29
Identifying and managing economic, environmental and socialimpacts
Operation responsibility102-30E?ectiveness of risk management processOperation responsibility102-31Review of economic, environmental and social topicsOperation responsibility
GRI IndicatorIndicator DescriptionSection
Appendix I Content Index of Global ReportingInitiative (GRI) Standards
Governance
102-32Highest governance body’s role in sustainability reportingOperation responsibility102-33Communicating critical concernsOperation responsibility102-34Nature and total number of critical concernsOperation responsibility102-35Remuneration policies/102-36Process for determining remuneration /102-37Stakeholders’ involvement in remuneration/102-38Annual total compensation ratio/102-39Percentage increase in annual total compensation ratio/Participation ofStakeholders
102-40List of stakeholder groupsOperation responsibility102-41Collective bargaining agreement/102-42Identifying and selecting stakeholdersOperation responsibility102-43Approach to stakeholder engagementOperation responsibility102-44Key topics and concerns raisedOperation responsibility
Report Practice
102-45Entities included in the consolidated nancial statements/102-46Dening report content and topic boundariesAbout this Report102-47List of material topicsOperation responsibility102-48Restatement of informationNot applicable102-49Changes in reportingNot applicable102-50Reporting periodAbout this Report102-51Date of the most recent reportAbout this Report102-52Reporting cycleAbout this Report102-53Contact information for questions regarding the report About this Report102-54Claims of reporting in accordance with the GRI standardsAbout this Report102-55GRI content indexAppendix102-56External assurance/ManagementMethod
103-1Explanation of the material topic and its boundariesOperation responsibility103-2Management approach and its componentsOperation responsibility103-3Evaluation of the management approachOperation responsibilityEconomicPerformance
201-1Direct economic value generated and distributed/201-2
Financial implications and other risks and opportunities due toclimate change
/201-3Dened benet plan obligations and other retirement plans/201-4Financial assistance received from government/Market Presence
202-1
Ratios of standard entry level wage by gender compared to localminimum wage
/202-2Proportion of senior management hired from the local community/Indirect Economic
Impacts
203-1Infrastructure investments and services supported/203-2Signicant indirect economic impacts/
ProcurementPractice
204-1Proportion of spending on local suppliers/Anti-corruption
205-1Operations assessed for risks related to corruptionOperation responsibility
205-2
Communication and training about anti-corruption policies andprocedures
Operation responsibility
205-3Conrmed incidents of corruption and actions takenOperation responsibilityAnti-competitivebehavior
206-1
Legal actions for anti-competitive behavior, anti-trust, and anti-monopoly practices
Operation responsibilityMaterials
301-1Materials used by weight or volume/301-2Recycled input materials used
Environmentalresponsibility301-3Reclaimed products and their packaging materials
Environmentalresponsibility
Energy
302-1Energy consumption within the organization
Appendix IIPerformance Form302-2Energy consumption outside of the organization/302-3Energy intensity
Appendix IIPerformance Form302-4Reduction of energy consumption
Environmentalresponsibility302-5Reduction in energy requirements of products and services
Environmentalresponsibility
Water Resources
303-1Interactions with water of the organization
Environmentalresponsibility303-2Management of water discharge-related impacts
Environmentalresponsibility303-3Water withdrawal/303-4Water discharge
Environmentalresponsibility303-5Water consumption
Environmentalresponsibility
Biodiversity
304-1
Operational sites owned, leased, managed in, or adjacent to,protected areas and areas of high biodiversity value outsideprotected areas
Not applicable304-2
Signicant impacts of activities, products, and services onbiodiversity
Not applicable304-3Habitats protected or restoredNot applicable304-4
IUCN Red List species and national conservation list specieswith habitats in areas a?ected by operations
Not applicable
Emissions
305-1Direct (Scope1) GHG emissions
Appendix IIPerformance Form305-2Energy indirect (Scope 2) GHG emissions
Appendix IIPerformance Form305-3Other indirect (Scope 3) GHG emissions/305-4GHG emissions intensity
Appendix IIPerformance Form305-5Reduction of GHG emissions /305-6Emission of ozone-depleting substances (ODS)/305-7
Nitrogen oxides (NO
X), sulfur oxides (SO
X) and other signicantair emissions
/
GRI IndicatorIndicator DescriptionSectionGRI IndicatorIndicator DescriptionSection
Waste
306-1Waste generation and signicant waste-related impacts
Environmentalresponsibility306-2Management of signicant waste-related impacts
Environmentalresponsibility306-3Waste generated
Environmentalresponsibility306-4Waste diverted from disposal
Environmentalresponsibility306-5Waste directed to disposal
EnvironmentalresponsibilityEnvironmentalCompliance
307-1Non-compliance with environmental laws and regulations
EnvironmentalresponsibilitySupplierEnvironmentalAssessment
308-1New suppliers that were screened using environmental criteriaPartner responsibility308-2
Negative environmental impacts of supply chain and actionstaken
Partner responsibilityEmployment
401-1New employee hires and employee turnover rate
Appendix IIPerformance Form401-2
Benets provided for full-time employees (excluding temporary orpart-time employees)
Responsibilities for
employees401-3Parental leave /Labor/ManagementRelations
402-1Minimum notice periods regarding operational changesNot applicable
OccupationalHealth and Safety
403-1Occupational health and safety management system
Responsibilities foremployees403-2Hazard identication, risk assessment, and incident investigation
Responsibilities foremployees403-3Occupational health services
Responsibilities foremployees403-4
Worker participation, consultation and communication onoccupational health and safety
Responsibilities foremployees403-5Worker training on occupational health and safety
Responsibilities for
employees403-6Promotion of worker health
Responsibilities for
employees403-7
Prevention and mitigation of occupational health and safetyimpacts directly linked by business relationships
Responsibilities for
employees403-8
Workers covered by an occupational health and safetymanagement system
Responsibilities for
employees403-9Work-related injuries
Appendix IIPerformance Form403-10Work-related ill health
Responsibilities for
employeesTraining and
Education
404-1Average hours of training per year per employee
Appendix IIPerformance Form404-2
Programs for upgrading employee skills and transition assistanceprograms
Responsibilities for
employees404-3
Percentage of employees receiving regular performance andcareer development reviews
Responsibilities for
employeesDiversity and Equal
Opportunity
405-1Diversity of governance bodies and employees
Responsibilities for
employees
Appendix IIPerformance Form405-2Ratio of basic salary and remuneration of women to men/Anti-discrimination406-1Incidents of discrimination and corrective actions taken
Responsibilities for
employeesFreedom ofAssociationand CollectiveBargaining
407-1
Operations and suppliers in which the right to freedom ofassociation and collective bargaining may be at risk
Responsibilities for
employees
GRI IndicatorIndicator DescriptionSection
Child Labor408-1
Operations and suppliers at signicant risk for incidents of childlabor
Responsibilities foremployeesForced orCompulsory Labor
409-1
Operations and suppliers at signicant risk for incidents of forcedor compulsory labor
Responsibilities foremployeesSecurity Practices410-1Security personnel trained in human rights policies or procedures/Rights ofIndigenous Peoples
411-1Incidents of violations involving rights of indigenous peoplesNot applicableHuman Right
Assessment
412-1
Operations that have been subject to human rights reviews orimpact assessments
Responsibilities foremployees
412-2Employee training on human right policies or procedures
Responsibilities foremployees
412-3
Signicant investment agreements and contracts that includehuman rights clauses or that underwent human rights screening
/Local Communities
413-1
Operations with local community engagement, impactassessment and development programs
Communityresponsibilities413-2
Operations with signicant actual and potential negative impactson local communities
CommunityresponsibilitiesSupplier SocialAssessment
414-1New suppliers that were screened using social criteriaPartner responsibility414-2Negative social impacts in the supply chain and actions takenPartner responsibilityPublic Policy415-1Political contributionsNot applicableCustomer Healthand Safety
416-1
Assessment of the health and safety impacts of product andservice categories
Product responsibility416-2
Incidents of non-compliance concerning the health and safetyimpacts of products and services
Product responsibilityMarketing andLabeling
417-1Requirements for product and service information and labeling/417-2
Incidents of non-compliance concerning products and servicesinformation and labeling
/417-3Incidents of non-compliance concerning marketing /Customer Privacy418-1
Substantiated complaints concerning breaches of customerprivacy and loss of customer data
Product responsibilitySocio-economicCompliance
419-1
Non-compliance with laws and regulations in the social andeconomic area
Not applicable
Appendix II Performance Form
Environmental indicator
ESG Indicator CategoryUnitData of 2021
Emissions
Direct GHG emissions(Scope 1)
tCO
e356.6Indirect GHG emissions (Scope 2)tCO
e13,930.7Total GHG emissionstCO
e14,287.4GHG emission intensitytCO
e/RMB billion revenue2.89Water ResourcesTotal water consumptionTon108,562.3Materials
Packaging cartons usedTon1,105.3Packaging plastic bags usageTon152.7Waste
Total hazardous wasteTon3.2Total other hazardous wasteTon0.8O?ce paper usageTon12.5
Energy
Gasoline usageL5,530.0Pipeline natural gas usagesCBM117,050.0Liqueed petroleum gas usageTon30.0Outsourced electricity usagekWh23,977,175.4Comprehensive energyconsumption
tce3,133.1Comprehensive energyconsumption intensity
tce/RMB billion revenue0.63
Social performance
ESG Indicator CategoryUnitData of 2021
Employment
Total number of employeesPerson16,095Number of male employeesPerson11,227Number of female employeesPerson4,868Junior college and underPerson7,955UndergraduatePerson6,741Postgraduate and abovePerson1,399Aged 29 and underPerson7,842Aged 30-39Person6,852Aged 40 or abovePerson1,401China (including Hong Kong, Macao and Taiwan)Person8,642OverseasPerson7,453Manager (M1-M5) turnover rate%10.3
Diversity and Equal
Opportunity
Number of female employees in managementPerson79Number of female employees in senior management Person1Number of female employees among new employeesPerson2,160Chinese ethnic minority employeesPerson562Foreign employeesPerson7,477Occupational health
and safety
Number of employee deaths related to work in the pastthree years
Person0Total investment in occupational health and safetymeasures
RMB million14.49
Training and
Education
Total training attendancePerson-time43,032Average training hours per employeeHour39.6Total hours of training for employeesHour637,312Total investment in employee training RMB million11.19SupplierEnvironmental /Social Assessment
Number of annual supplier evaluations (internalevaluations)
Time 252The signing rate of honesty agreement by mobile phoneraw material suppliers in mainland China
%100Anti-corruption
Number of concluded corruption lawsuits brought againstthe Company or its employees
Case0Number of special internal audits (within the company)Time18Local Communities
Cumulative total hours of volunteer service Hour9,616External donations and investment in rural revitalizationRMB million3.971
Customer Service
Number of complaints received about products andservices
Case1,590Complaint closing rate%98.1Total number of information security breaches or othernetwork security incidents
Case0Number of data leakage Case0Total number of complaints due to customer privacybreaches
Time0Intellectual PropertyProtection
Number of patents granted (including utility models,inventions and designs)
PCS752Number of copyrights (including software and workcopyright)
PCS216Total number of patents applied (including utility models,inventions and designs)
PCS1,028Product QualityTotal number of product recallsCase0
ESG Indicator CategoryUnitData of 2021
Feedback Form
Valued readers,Thank you for reading this Report. This is our Environmental, Social and Governance (ESG) Report 2021. We sincerely hopethat you could evaluate this Report and provide valuable comments to help us make continuous improvement.Should you have any comments or suggestions on the ESG Report of Transsion Holdings, please feel free to email us byinvestor@transsion.com.
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Notes:
1. Environmental indicator data only includes the relevant data of Transsion's two factories in Shenzhen and Chongqing and the
administrative o?ces in mainland China;
2. In accordance with ISO 14064 GHG emission standards, direct GHG emissions (Scope 1) refer to the GHG emissions from
sources owned and controlled by the organization, such as its own vehicles; indirect GHG emissions (Scope 2) refer to GHGemissions from indirect sources of energy, such as the outsourced electricity;
3. Direct GHG emissions from gasoline, liquefied petroleum gas and pipeline natural gas were calculated according to the
Guidelines for Compiling Provincial GHG Lists published by the Department of Climate Change of the National Developmentand Reform Commission and the Appendix II: Guidelines for Reporting Environmental Key Performance Indicators publishedby the Hong Kong Stock Exchange in How to Prepare Environmental, Social and Governance Reports;
4. The indirect GHG emissions from outsourced electricity were calculated according to the national grid emission factor
(0.5810tCO
/MWh) listed in the Guidelines for Accounting and Reporting of Greenhouse Gas Emissions of Enterprises PowerGeneration Facilities (2022 revision) issued by The Ministry of Ecology and Environment of the People’s Republic of China;
5. The total energy consumption was converted into standard coal according to the Chinese standard GB/T 2589-2020 General
Rules for Comprehensive Energy Consumption Calculation;
6. The manager (M1-M5) turnover rate was calculated based on the following formula: Turnover rate =
Number of employees leaving during the reporting period
Number of employees at the beginning of the reporting period +number of new employees during reporting period
7. The complaint closing rate is the data of the company as of December 31, 2021.
×100%
Shenzhen Transsion Holdings Co., Ltd.