+86-512-62601802www.novosns.comSuzhou Novosense Microelectronics Co., Ltd.C1-501, Artificial Intelligence Industrial Park, No.88 Jinji Lake Avenue, Suzhou Industrial Park
Suzhou Novosense Microelectronics Co., Ltd. 2023 Environmental, Social and Governance (ESG) Report
2023 Environmental, Social andGovernance (ESG) Report
Stock Code
Co-creation and Sharing:
Create ExtraordinaryValueTechnology Innovation
Quality ManagementSupply Chain Management
About This Report 02Chairman's Message 03About NOVOSENSE 05Company Prole 05Global Presence 05Corporate Culture 06Core Business 06History 07
Focus on SustainableBusiness and Build aGreen and Smart World
Feature
CONTENTS
Appendix
AwardsReport IndexFeedback
Outlook
Well-planned Strategy:
Safeguard SustainableDevelopment
Compliance GovernanceESG Governance
Green Operation: Co-builda Green Future
Green ProductsGreen OfceResponse to Climate Change
People First: SupportEmployee GrowthOur EmployeesEmployees' Rights and InterestsTraining and Career DevelopmentOccupational Health and SafetyEngagement in Charity Activities
Report OverviewThis represents the second Environmental, Social and Governance (ESG) Report released by Suzhou Novosense Microelectronics Co., Ltd. Itis compiled based on the company's specific efforts in bolstering corporate governance, safeguarding employee interests, and prioritizing R&Dand innovation throughout the year 2023. Its aim is to showcase the company's ESG approach and its commitment to fulfilling corporate socialresponsibility for the year.Reporting PeriodJanuary 1, 2023 to December 31, 2023. Some contents are backdated to previous years or extended to subsequent years, as appropriate, toenhance the comparability and forward-looking nature of this report.
Reporting ScopeUnless otherwise specified, the scope of this report is consistent with the scope of the company's annual report.
Abbreviations
Data Sources
The data and examples cited in this report are all from the official working documents, financial reports and statistical data of NOVOSENSE andits major subsidiaries, and have been reviewed and confirmed by the relevant departments of the company to ensure that there are no falserecords, misleading statements or material omissions. In case of any discrepancy between this report and the company’s annual report, the lattershall prevail.Unless otherwise specified, the currency involved in this report is RMB and all amounts in this report are denominated in RMB.
Reference Standards
Rules of the Shanghai Stock Exchange for Stock Listing on the STAR Market (Revised in August 2023)Guidelines No.1 of the Shanghai Stock Exchange for Self-regulation of Listed Companies on the STAR Market - Standardized OperationGuidelines No.2 of the Shanghai Stock Exchange for Self-regulation of Listed Companies on the STAR Market - Voluntary Information DisclosureGlobal Reporting Initiative: Sustainability Reporting Standards (GRI Standards) (2021 Edition)Hong Kong Exchanges and Clearing Limited: Environmental, Social and Governance Reporting GuideResearch Center for Corporate Social Responsibility, Academic Division of Economics, Chinese Academy of Social Sciences: China CSRReporting Guidelines (CASS-ESG 5.0)
Access to the ReportYou can download the electronic version of this report from the website of the Shanghai Stock Exchange (http://www.sse.com.cn) or the website of SuzhouNovosense Microelectronics Co., Ltd. (https://www.novosns.com/) for more information of the company.
FeedbackIf you have any opinions or suggestions on the sustainable development of the company, please provide your feedback in the following ways tohelp us make continuous improvement.
Suzhou Novosense Microelectronics Co., Ltd.
Suzhou NAXIWEI Semiconductors Co., Ltd.
Full Name
NOVOSENSE/company/weSuzhou NAXIWEIAbbreviation
About This Report
Tel: +86-512-62601802Email: pr@novosns.com
For ease of presentation, the following abbreviations are used in this report:
Chairman's Message
Wang Shengyang
Chairman of NOVOSENSE Microelectronics
Dear friends,The past 2023 has been a challenging year. Despite thedaunting market environment, NOVOSENSE has maintainedits pace and continued to make progress in product layout,business expansion, and organizational development. Thissucess is due to the wisdom and hard work of our employees,the unwavering trust and collaboration of our customers, andthe invaluable support and assistance of our partners. Onbehalf of the Board of Directors, I would like to express mysincere gratitude to all of you for your continued concern andsupport for NOVOSENSE."Robust, Reliable, Keep Learning, Persist in Long-term Value"are core values that we pride ourselves on practicing. Weprioritize enduring value over short-term gains, ensuringour decisions are guided by long-term goals. These valuestranscend mere slogans, serving as the fundamentalmeasures, deeply ingrained in our company's strategy andbusiness ethos. They act as guiding lights, propelling usforward on a journey of innovative, sustainable, and high-quality development.Always adhering to our core values, NOVOSENSE is clearlypositioned to provide chip-level solutions to link the digitalworld and the real world. We stay ambitious, courageousand determined to move forward, and insist on integratingthe sustainable development philosophy into our businessdevelopment.Strive to improve managementcomprehensively
In 2023, we revised and released a number of companystandards, systematically advancing the implementation ofmultiple business systems, and further enhancing all facets ofthe company's management. Regarding ESG, we are steadfastin establishing a robust ESG governance framework, overseenby the Board of Directors, championed by management, andeffectively executed by each department within their respectiveESG-related responsibilities. While solitary journeys may beswift, companionship ensures greater distance traveled. As acompany committed to long-term value, we actively engageour supply chain partners in understanding the ESG approachthrough training, audits, and the adoption of a supplier code ofconduct. By fortifying our supply chain resilience, we deliversuperior performance products and enhanced services to ourcustomers.
Chairman's Message
Put people first at the coreThe chip design industry thrives on wisdom, making people the paramount driving force behind NOVOSENSE's development. We investsubstantial energy and resources into the selection, recruitment, training, and retention of talent. Our aim is to foster an environment thatignites employees' self-fulfillment, promotes career longevity, and honors expertise and individuality. Alongside competitive compensation,benefits, and employee well-being initiatives, we prioritize continuous growth through bespoke training programs like the “XINYUNJIHUA","XINHUOJIHUA", and "XINKONGJIHUA", supported by a robust training infrastructure. Furthermore, we offer diverse career paths, includingmanagerial, professional, and horizontal job rotations, enabling employees to chart their own way towards more career opportunities.Insist on quality assurance and technology innovationIn the midst of global changes, we remain unwavering in our commitment to quality assurance and technology innovation, forging collaborativeties with both upstream and downstream entities in the value chain. Our aim is to foster mutual prosperity and achieve shared success, solidifyingour position as a trusted partner throughout the industry. Guided by our dual R (Robust & Reliable) quality policy, we not only pledge but activelyembody these principles in all our actions. With quality as the core and innovation as the driving force, we keep pushing the industry forward andshaping a more sustainable future for generations to come.Always implement a green development philosophyIt's our mission to "Sense and Drive the Future: Build a Green, Smart and Connected World with Semiconductors". We implement a greendevelopment philosophy, practice low-carbon, environmental protection, energy conservation and consumption reduction in company operations,and create a good atmosphere for energy conservation and consumption reduction. At the business level, we are developing green, smart andconnected "chip" products around key areas of energy conservation such as new energy vehicles and pan-energy1. Against the backdrop ofglobal climate change, we are developing our business to accelerate the reduction of GHG emissions for the whole society and contribute toChina's carbon peaking and neutrality goals.The road to sustainability never ends. We hope to make further progress in our ESG efforts by persisting in and delivering long-term value.As spring arrives, the landscape transforms with lush vegetation and verdant mountains in view. Amidst the chilling winter of the semiconductorindustry, we strive towards an ambitious goal: empowering the green development of society as a whole. Guided by a people-centric approach, weremain steadfast in our commitment to technological innovation, fostering continual growth to establish a sturdy foundation. With unwavering belief,we hold onto the certainty that spring will inevitably dawn upon us.
??The?pan-energy?eld?mainly?refers?to?industrial?applications?around?the?energy?system,?from?power?generation?to?transmission?and?distribution?and?then?to all aspects of consumption, including PV, energy storage, modular power supply, industrial control, power electronics, white appliances, etc.
About NOVOSENSE
Company Prole
Global Presence
NOVOSENSE Microelectronics (NOVOSENSE, SSE: 688052) is a highly robust & reliable analogand mixed signal chip company. Since its establishment in 2013, the company has been focusingon sensor, signal chain, and power management, providing comprehensive semiconductor productsand solutions such as magnetic sensor, pressure sensor, temperature/humidity sensor, sensor signalconditioning IC, isolator, interface, industrial/automotive ASSP, amplifier, data converter, voltagereference, gate driver, motor driver, LED driver, power supply, and power path protection. By the endof 2023, the company has been able to offer more than 1,800 product parts for sale, which are widelyused in automotive electronics, energy and power, industrial automation and consumer electronicsmarkets. With excellent automotive chip development capabilities and rich experience in massproduction and quality control, the company has actively developed chip products for automotiveelectronics and successfully entered the mainstream automotive supply chain for extensiveapplication.
All-category mixed digital-analog
chip provider
Leader among China automotive
chip providers
Leader among digital isolator andsensor providers
R&D Layout
Sales Layout
● Shanghai
● Beijing
● Suzhou
● Chengdu
● Shenzhen
● Tianjin
● Suzhou
● Beijing
● Hangzhou
● Wuhan
● Japan ● South Korea ● Germany
● United States
● Shanghai
● Chengdu
● Hefei
● Shenzhen
● Nanjing
● Qingdao
China
OutsideChina
About NOVOSENSE
Corporate Culture
Core BusinessProduct Layout
NOVOSENSE always adheres to the core values of "Robust, Reliable, Keep Learning, Persist in Long-term Value"to provide robust products and reliable services to customers.We have extensive semiconductor product lines covering sensor, signal chain, isolator, interface, power, driver,and power management. By the end of 2023, we have been able to offer more than 1,800 product parts for sale.The company's specific product layout is as follows:
Positioning
Providing chip-level solutions to link the digital world and thereal world
ValuesRobust Reliable Keep Learning Persist in Long-term Value
Mission andVisionSense and Drive the Future: Build a Green, Smart andConnected World with Semiconductors
About NOVOSENSE
Amidst the surge in automotive electrificationand intelligence, the demand for automotivechips is on a continuous incline. Since 2016,NOVOSENSE has been at the forefrontof developing automotive chip products,boasting a proven track record of successfuldevelopment and mass production.The company presents a full range ofsemiconductor solutions, spanning newenergy vehicle OBC/DCDC/PDU, thermalmanagement, body electronics and lighting,automotive infotainment and instrumentation,fuel vehicle powertrain and fuel supplysystem.
NOVOSENSE provides one-stopsemiconductor solutions with small size,high reliability, and high integration,including a rich product portfolio of powerdevices, drivers, digital isolators, isolatedinterfaces, and sensors. We are committedto further advancing renewable energysystems and industrial automation throughmore integrated, reliable and cost-effectivesemiconductor solutions.
In response to the burgeoning demand forenhanced convenience and intelligencein consumer electronics, the marketis witnessing rapid iterations in chiptechnology, accompanied by heightenedexpectations for precision and integration.With this in mind, NOVOSENSE is ahead ofthe curve, offering a comprehensive arrayof sensors, signal conditioning chips, motordrivers, isolated drivers, isolated interfaces,and more. These solutions cater to diverseapplications across home appliances,wearable devices, and other sectors.
Automotive ElectronicsPan-energy Consumer Electronics
nnnnnnn
White goods and home appliancesMobile phones, pads and peripheralsHealth and care (portable medical equipment)Portable electronic productsData storageComputers and peripheralsAudio and video entertainment
nnnnnnnn
ICV/driving/cabinBody control and lightingChassis and safetyFuel/hybrid powertrainInverter/powertrainBMSOBC/DC-DC/PDUThermal management system
nnnnnnnnn
PV and wind powerSmart gridEnergy storage systemUser energy storage PCSCharging pileUninterruptible power supplyServer power supplyCommunication power supplyIndustrial motor driver
Market Application
NOVOSENSE has been expanding its product categories around different applications to provide completesolutions for automotive electronics, pan-energy, and consumer electronics markets. The main downstreammarket applications are as follows:
History
2013
201420152016
Founding of NOVOSENSELaunch of the first 3-axis accelerometer SSC ASICLaunch of the first pressure sensor SSC ASICFirst certification as a national high-tech enterpriseLaunch of the first automotive chip
Year Milestone
2018
2017
2019
2020
2021
2022
2023
Mass production of temperature sensor chipsExtensive application of automotive pressure sensor chipsRe-certification as a national high-tech enterpriseLaunch of the first MEMS pressure sensorLaunch of isolated power and isolated interface chips
Excellent Enterprise in Jiangsu ProvinceLaunch of the first digital isolator
Launch of isolated driver and isolated amplifierTop 10 Semiconductor MEMS Enterprises in China, 2020Top 20 Integrated Circuit Enterprises in Suzhou - Integrated Circuit DesignMass production of all automotive isolator categoriesLaunch and mass production of the first Hall current sensorRe-certification as a national high-tech enterprise"Potential Unicorn" and "Most Promising High-tech Enterprise" in Jiangsu16th "China Chip" Excellent Technological Innovation Product AwardListing on SSE STAR MarketLaunch of automotive motor driver ICLaunch of automotive power IC17th "China Chip" IC Excellent Product Award15th China Innovative Semiconductor Product and Technology AwardFurther local support across 10+ locations in ChinaExpanded global presence with branches in Germany, Japan, South Korea, etc.
Top 5 Most Promising IC Design Companies in China, 2019 China ICDesign Achievement Awards
5th batch of national specialized, sophisticated, distinctive and innovative"Little Giant" enterprises18th "China Chip" Excellent Technological Innovation Product Award
Targeting automotive and pan-energy markets, NOVOSENSE developsproducts around downstream applications with its focus on sensor, signal chain,and power management, providing comprehensive semiconductor productsand solutions. NOVOSENSE also taps the sustainability potential of productsto broaden its product offerings. During the reporting period, the companycontinued to increase resource investment in R&D, market development,supply chain system, quality management, team building, etc. We focused ontechnological innovation, further strengthened R&D system and team building,and expanded our presence to product categories such as magnetic sensor,non-isolated driver, and power management. We went deep into core marketssuch as automotive and pan-energy, erected competitive barriers, and launcheda global presence strategy. By optimizing supply chain management and qualitymanagement, we drove rapid business growth.
Focus on Sustainable Business and Build aGreen and Smart World
Feature
Offercomprehensivesemiconductorproducts andsolutions
SensorSignal chainPower management
Supply chainmanagementQualitymanagement
Drive rapid business growth
9.51%
consumer electronics
59.52%
pan-energy
30.95%
automotive electronics
In 2023, among focusedapplications, pan-energyand automotive electronicscontributed to 59.52% and
30.95% of NOVOSENSE's
revenue, respectively.NOVOSENSE -revenue share offocused applicationsin 2023
Feature
Different from the heat exchange method of traditional fuelvehicles based on internal combustion engines, new energyvehicles based on electric energy require a more intelligentand efficient thermal management system to coordinateand manage the temperature of the battery, engine, airconditioning, other related components and system, so as toobtain a longer endurance and service life while ensuring thefunctional safety of vehicles.Currently, thermal management systems are transitioningfrom distributed architectures to more efficient integratedarchitectures. System designs that use domain controllerswith large computing power to control multiple BLDC motorsat the same time are gaining popularity, while the designof replacing domain-controlled MCUs with intelligent BLDCpre-drivers integrating curing algorithms is gradually coming to the forefront due to cost reduction considerations. NOVOSENSE'shighly integrated small motor driver SoC, NSUC1610, realizes efficient, real-time control of small motor applications by integrating anARM core MCU, a 4-way half-bridge driver, and a LIN interface on a single chip. It is widely used in applications such as electronicexpansion valves, AGS, and electronic air vents in thermal management systems. With a comprehensive product layout in thedirection of sensors, signal chain and power management, NOVOSENSE provides one-stop solutions for intelligent, safe and efficientthermal management systems.
NOVOSENSE's thermal management system solution for newenergy vehicles
Under the dual drive of "dual carbon goals" and "energy crisis", energy conservationand emission reduction are imminent. NOVOSENSE regards new energy vehicles,PV, energy storage, and third-generation semiconductor materials as key fieldsfor energy conservation and emission reduction. We prioritize pan-energy andnew energy vehicles, and fully leverage our technological advantages to empowerapplication systems to save energy, reduce emissions and improve energy efficiency,contributing to green and sustainable development.
Focusing on the field of automotive electronics, NOVOSENSE has been enriching its automotive product categories and improving its productcoverage in automotive electronics applications since the launch of its first auto brake pressure sensor in 2016, aiming to provide one-stopsemiconductor solutions for the development of electrification and intelligence in automobiles.Electrification and intelligence are the core mega-trends driving the growth of automotive chips:
NOVOSENSE has a rich product portfolio of traction inverter, BMS, DC-DC, OBC, PDU and thermalmanagement system for new energy vehicles.
NOVOSENSE already has a proven portfolio across the fields of body electronics, car lighting, door andwindow control, seat control, and intelligent cabin, and will further expand its product types.
Electrification
Intelligence
New energyvehiclesEnergy storage
Third-generationsemiconductor
materials
PV
Automotive Electronics
Featured product
To meet the voltage resistance and drivingdelay requirements of traditional high-voltagehalf-bridge drivers with wide-bandgaptechnologies, NOVOSENSE has innovativelyapplied isolation technology to high-voltagehalf-bridge drivers and introduced the non-isolated high-voltage half-bridge driver chipNSD1624. The driver chip replaces the levelshifter scheme with the capacitive isolationscheme to realize high-side drive signaltransmission, enabling the high voltageoutput side to withstand up to 1,200V DCvoltage and gaining popularity in many fieldssuch as PV, energy storage, high-efficiencyand high-density industry, communication,and server power.In the future, we will continue to strengthenour internal strength by "deepening ourunderstanding of market applications andsystems, expanding our customer base, andbuilding a comprehensive technical team".
Feature
NOVOSENSE's non-isolated high-voltage half-bridge driver
Under the influence of multiple factors such as global consensus on carbon neutrality and geographical conflicts, countries around the world areescalating their demands for new energy development. This surge in demand presents significant opportunities for the rapid expansion of therenewable energy market.As a high-performance, high-reliability analog and mixed-signal chip company, NOVOSENSE regards PV as an important starting point forpracticing green sustainability and a key link in its energy and power business, providing solutions such as PV inverters, energy storageconverters, PV arrays/optimizers, and BMS. With the increasing complexity of electronic systems, market dynamics are evolving from single-device functionality towards holistic system performance. A prominent trend in the analog IC industry is the drive for "integration," wherein diverseanalog design components are integrated into a single chip to enhance performance, reduce costs, and expedite development. NOVOSENSEaligns with this trend, which has already demonstrated its efficacy across various markets. This year, we have continued close collaborationwith leading companies in the PV industry to provide reliable products and services. In terms of industrial automation, NOVOSENSE has beencommitted to working with industry-leading customers to discuss system development trends and plan new products to accelerate industrydevelopment based on our existing products.
Pan-energy
Featured product
Operate with integrity, abide by businessethics, and organize business ethicstraining for all employees at least once ayearContinuously promote gender diversityand support the development of women inSTEM (science, technology, engineering,mathematics) fieldsConduct stakeholder communication survey
Good corporate governance is an essentialtop-level design for sustainable development,contributing to our long-term development andeverlasting success. NOVOSENSE activelyresponds to the United Nations SustainableDevelopment Goals 5, 12, and 16, continuouslyimproves corporate governance, and empowerscorporate sustainable development with ESG.
Well-planned Strategy:
Safeguard SustainableDevelopment
OurActions
Gender EqualityResponsible
Consumptionand Production
Peace, Justiceand StrongInstitutions
Well-planned Strategy: Safeguard Sustainable Development
Compliance GovernanceCorporate GovernanceCorporate GovernanceNOVOSENSE places significant emphasis on modern governance systems, continuously enhancing its management standards. The companyhas instituted robust rules and regulations, meticulously outlining the powers and responsibilities of key entities such as the general meeting ofshareholders, the Board of Directors and its specialized committees, the Board of Supervisors, management, and various functional departments.This clarity and efficiency ensure that each entity exercises decision-making, executive, and supervisory functions in alignment with theirprescribed roles. This concerted effort fosters the establishment of a scientific, well-regulated, harmoniously balanced, and efficiently operatedgovernance framework.In 2023, NOVOSENSE held meetings as follows:
Audit Committee
Strategy Committee
meetings,
proposals reviewed
meetings,
proposals reviewed
meetings,
proposals reviewed
meetings,
proposalsreviewed
meetings,
proposals reviewedNomination Committee Compensation and
Appraisal Committee
Board of Supervisors
Board of Directors
meetings,
proposals reviewed
Members of the Board of Directors
members,100%attendance
General Meeting of
Shareholders
meetings and reviews
proposals reviewed
Information Disclosure
NOVOSENSE diligently adheres to the stipulations outlined in the Administrative Measures forInformation Disclosure of Listed Companies, alongside other relevant laws and regulations.We have formulated and implemented a comprehensive Information Disclosure ManagementSystem, meticulously organizing the information disclosure process. Additionally, we havecompiled the Information Disclosure Manual for Securities Affairs of the company, facilitatingeffective management and execution of information disclosure responsibilities. Upholdingthe principles of truthfulness, accuracy, completeness, timeliness, and fairness, we ensureprompt disclosure of information that may significantly influence the company's operations,safeguarding investors' right to pertinent information.While formulating a sound and effective information disclosure system, the companycomprehensively regulates the behavior of insiders and information reporting procedures.We rigorously enforce the transmission, review, and disclosure processes for undisclosedinformation, while heightening the awareness of insider information confidentiality andregistration among relevant personnel. These measures are implemented to eradicateinstances of insider trading.
Investor Relations ManagementNOVOSENSE focuses on establishing a long-term and stable good relationship withinvestors, actively carries out investor management based on the principles of compliance,equality, initiative, honesty and trustworthiness, and formulates the Investor RelationsManagement System in accordance with the Guidelines for Investor Relations Management ofListed Companies. We improve the level of investor relations management, build a two-waycommunication platform with investors, and promptly convey relevant information on businessmanagement and major decisions to investors, thereby enhancing investors' understandingand recognition of the company.The company continues to improve its communication mechanism with investors andstrengthen its investor relations management. Through diverse communication channelssuch as shareholders' meetings, SSE e-interactive platform, investor consultationhotlines, reception of institutional surveys, participation in brokerage strategy meetings,and performance briefings, the company maintains active communication with investorsand potential investors, answers investors' questions, listens to investors' opinions andsuggestions, and provides reference information for the company's decision-making based onits actual operation.
In 2023, the company:
prepared and disclosed
periodic reportsissued
other informationdisclosure documents
Received
150+
institutionalsurveysPublished
minutes of investorrelations activitiesMore than
institutionsattended the online performancebriefings for the interim and thirdquarter reportsAnswered investor calls every dayand responded to questions onthe SSE e-interactive platform
times
As at the end of the reporting period, NOVOSENSE had 9 directors (including 3 independent directors), including 1 female member (accountingfor 11.11% of total members) and 8 male members; and 3 supervisors (including 1 employee supervisor), including 2 female members(accounting for 66.67% of total members) and 1 male member.
MaleFemale
88.89
%
33.33
%
11.11
%
66.67
%Board ofDirectors
Board ofSupervisors
Well-planned Strategy: Safeguard Sustainable Development
Business Ethics
NOVOSENSE operates with integrity, abides by business ethics, adheres to a "zerotolerance" attitude towards bribery and corruption, takes responsibility for any businessbehavior. We strive to establish an industry-leading management system, and insist oncreating a culture of integrity and honesty in all aspects of daily work. We strictly abide bythe relevant national and local policies, laws and regulations on integrity, self-discipline andbusiness ethics, and have formulated relevant systems such as the Anti-Commercial BriberyManagement and Operation Mechanism and the Code of Conduct against CommercialBribery, which are regularly publicized across the company. In addition, NOVOSENSE hasjoined the China Enterprise Anti-Fraud Alliance.
NOVOSENSE is committed to ensuring integrity and transparency in business processes. Weactively cooperate with customers to sign integrity agreements or commitments, and requiredistributors to sign the Code of Business Conduct for Business Partners of Suzhou NovosenseMicroelectronics Co., Ltd.
In order to strengthen the company's compliance capacitybuilding and establish robust and reliable partnerships,NOVOSENSE released the Code of Business Conduct forBusiness Partners of Suzhou Novosense MicroelectronicsCo., Ltd. in 2022, which establishes standards for suppliers'business conduct. To this end, we have specially recorded thevideo of NOVOSENSE's Supplier Integrity Training in orderto more effectively convey NOVOSENSE's requirements onintegrity and deepen suppliers' understanding of the code ofconduct. The training video includes the following parts:
1) Introduction to NOVOSENSE's Code of Business Conduct for
Business Partners;
2) Basic concepts of commercial bribery and relevant laws and
regulations;
3) Analysis of key points of anti-commercial bribery.
After the training video, trainees are also required to complete the NOVOSENSE Supplier Integrity Training Quiz with a score of 80points or above.
Supplier training video recording
Business Ethics
In 2023, the company's supply chain department and legal department jointly carried out supplier integrity training for major suppliers.
NOVOSENSE joins the Enterprise Anti-Fraud Alliance as a member
Featured event
Anti-bribery, anti-fraud and information securitytrainingIn February 2023, the company conducted anti-bribery, anti-fraud and information security trainingfor all employees, which lasted 1.5 hours; inAugust and November, the company held relatedtrainings for subsidiaries and salespersons, whichwere attended by a total of 627 person/times.The training content includes:
The harm of commercial bribery and relevantlaws and regulations;The company's requirements and good practicesfor anti-commercial bribery;The scope and classification of confidentialinformation;
The company's confidentiality requirements and case sharing;
The company's reporting channels.These training sessions aim to strengthen employees' awareness of information security and understanding of anti-bribery and anti-fraud, and further guide them to abide by laws and regulations in business activities.
Anti-bribery, anti-fraud and information security training
We are committed to building a clean and transparent corporate culture to ensure thatour company strictly abides by laws and ethical standards in our business operations.To this end, we have intensified anti-corruption and anti-bribery training and awarenessinitiatives as part of our daily practices. Additionally, we regularly conduct education onbusiness ethics to instill the values of integrity among our employees. Our commitmentto ethical conduct is further reinforced through the integration of a code of ethics andbusiness conduct into our new employee orientation and annual training programs. Theseprograms cover various aspects such as ethical compliance, anti-corruption, protectionof trade secrets, and upholding supplier integrity in operations and collaborations,thereby enhancing the understanding and consciousness of all NOVOSENSE employees.Throughout the reporting period, we conducted three such training sessions, utilizing bothonline and offline platforms.
Conduct training on businessethics for all employees at leastonce a year
Email: complaint@novosns.com
Address: Internal Audit Department, Suzhou Novosense Microelectronics Co., Ltd.
5F, Building C1, No.88 Jinji Lake Avenue, Suzhou Industrial Park, Jiangsu Province, China
Tel: +86-512-62601802 (ext. 812)
Postal Code: 215100
We have established a multi-channel
reporting platform
Featured event
Well-planned Strategy: Safeguard Sustainable Development
In November 2023, the company successfully carried out training on information security awareness and file security protection for allemployees in an online+offline manner. The content covered the importance and meaning of information security, as well as threatprevention, file security and corresponding protection strategies. The company aimed to ensure that employees have informationsecurity awareness through a series of training activities, improve the overall level of information protection, and effectively respondto potential security risks. To consolidate the training effect, we issued examination tasks through the online training system to helpall employees enhance their information security awareness.
Information and Privacy SecurityWe are committed to effectively protecting trade secrets and personal information of customers and employees, and strive to ensure informationsecurity in business activities. We strictly comply with the Cybersecurity Law, the Data Security Law, and other laws and regulations of the placeswhere we operate.To reduce potential risks related to information security, for confidential commercial information, the company:
For personal information, we formulated the Personal Information Protection System and the Personal Information Impact Assessment (PIA)Operation Guide in 2023.In accordance with the Information Security System, the company strengthens information security and privacy protection, and regularly organizesinformation security related training activities for all employees to improve the awareness of information and privacy security across the company.
Has formulated systems such as the Confidentiality System and the Confidentiality System Implementation Rules;Exercises access control over system customer data (including customer projects, prices and orders, etc.);Actively cooperates in executing a confidentiality agreement with customers upon request or in the event of important technicalcooperation;Enters into the Employee Confidentiality Commitment with employees.
Featured eventInformation security training
Internal Control and Compliance ManagementCompliance with laws and regulations is the bottom line of NOVOSENSE's operation. We have incorporated compliance management intoour development strategy planning, continuously built the compliance risk control mechanism and internal compliance governance system,established compliance management awareness, enhanced the company's risk management capabilities, and achieved healthy development ofthe company.The Internal Audit Department under the Audit Committee of the Board of Directors of the company is a full-time internal audit organization.Under the leadership of the Audit Committee, it exercises its authority independently and objectively without interference from other departmentsor individuals. During the reporting period, we continued to consolidate the company's internal control foundation, strengthen internal controlmanagement, and further improve the internal control management mechanism, striving to build an all-round, multi-level and three-dimensionalinternal control management system.
Be responsible for organizing the establishment, implementation and management of the internal control system,guiding the company to carry out internal control management, supervising and inspecting the effectiveness ofthe company's internal control, and organizing the rectification of identified internal control deficiencies
Be responsible for reviewing and supervising the effective implementation of internal control and self-evaluation ofinternal control, coordinating internal control audits, and reporting to the Board of Directors on the effectiveness ofthe internal control system
Be responsible for the implementation and effective operation of internal control activities in the company's dailyoperationsSupervise the Board of Directors in establishing and implementing internal controlBe responsible for the establishment, improvement and effective implementation of the company's internal control
Responsibilities of internal control related departments
Anti-monopoly and Anti-unfair Competition
We attach great importance to anti-monopoly and anti-unfair competition, and strictly abide by the Anti-monopoly Law, the Anti-unfair CompetitionLaw, and other applicable laws and regulations. We have formulated internal policies such as the Administrative Measures on Anti-monopolyCompliance and the Anti-monopoly Compliance Manual to standardize relevant processes, conducted thematic training and publicity, followed upon regulatory developments, and handled anti-monopoly and anti-unfair competition cases and lawsuits.Transparent Tax PaymentTax payment in good faith and in accordance with the law is the best embodiment of corporate credit. We strictly abide by relevant tax lawsand regulations of the places where we operate, such as the Regulations of the People's Republic of China on the Implementation of theEnterprise Income Tax Law and the Announcement on the Relevant Policies for Deepening Value-Added Tax Reform, actively cooperate with theimplementation of government tax policies, pay taxes to local governments in accordance with the law, and make due contributions to economicdevelopment. At the same time, we assess tax risks by combining regular and irregular assessments, disclose tax information in accordance withthe law, and strictly prohibit tax evasion and tax avoidance.
Board ofDirectors
Internal Audit
Department
AuditCommittee
Management
Board ofSupervisors
Well-planned Strategy: Safeguard Sustainable Development
The compensation of senior management is linked to ESG metrics, including customer satisfaction, invention patents, IP system, technologyplatform building, R&D capability building, supply chain system building, and organizational capability building.ESG GoalsWith the support of management, each department also sets systematic long-term goals, reviews their achievement annually, and proposes morespecific implementation goals for the following year. Some of the goals are as follows:
Continue to build cultural values to help the company gain cultural drive and employee recognition for ESGMake targeted continuous improvement based on employee satisfaction surveysContinue to build systematic talent development programs and channelsIntegrate corporate knowledge resources and build a knowledge-based organizationBe responsible for publicity and implementation of anti-commercial bribery, including 1 training for allemployees, 1 training for suppliers, and 1 training for senior management each yearImplement the anti-commercial bribery compliance management process100% coverage of safety training100% coverage of safety inspection0 safety and environmental accidents throughout the yearEnsure capital investment for production safetyEnhance cooperation with car use platforms and use new energy vehicle services to continuously reducecarbon emissions
ESG Governance
ESG Governance Structure
We are continuously enhancing our ESG governance capabilities. In practice, the Board of Directors and the company's senior management overseedecision-making and monitor the planning and actual outcomes of our sustainability management efforts. Furthermore, all departments, branches, andsubsidiaries collaborate in promoting blueprint planning and operations concerning sustainability management. This includes studying relevant policies,refining internal systems, establishing robust protocols, conducting ESG practices, and gathering and assessing data. We actively solicit opinions andsuggestions, disseminate, communicate, and implement specific measures and feedback on environmental and social governance to all departments,branches, and subsidiaries. In doing so, we provide a strong organizational framework to support the advancement of the company's sustainabledevelopment efforts.
Board ofDirectors
BoardSecretary
Office
Human Resourcesand Administration
CenterBoard SecretaryOffice
Operation Office
HumanResources andAdministrationCenter
TechnicalInnovation
Center
BusinessProcess & ITCenter
FinanceCenter
Brand andMarketingCommunication
CenterOperationOffice
QualityOffice
Responsibledepartment
Goals
Communication with Stakeholders
NOVOSENSE regards stakeholder communication as the cornerstone of sustainable development. By establishing a diversifiedand targeted multi-channel communication and feedback mechanism, NOVOSENSE collects and identifies the demands of variousstakeholders, incorporates their ESG concerns into the company's strategic decisions, and deepens the participation of variousstakeholders in ESG management, so as to enhance the company's sustainability performance in a targeted manner and effectivelyrespond to the expectations of various stakeholders.Stakeholdercategory
Communication methodsand the company'sresponses
CountermeasuresIssues of concern
Non-profit orcommunityorganizations
Industryassociations
Non-profit charityEmployee care and rightsResponse to climate change
Cultural exchangeInformation disclosure
Take an active part in community charityactivitiesCarry out multi-party cooperation topromote local employment
Companyemployees
Clean energy and renewableenergy useResource and energyconsumption managementProduct R&D and technologyinnovation
Industry association activitiesDaily communicationInformation disclosure
Investors orshareholders
Economic performanceProduct R&D and technologyinnovationProduct quality management
Performance roadshows/briefingsInvestor research andcommunicationInformation disclosure
Conduct investor exchanges, meetings,roadshows, etc.Regularly publish announcements anddisclose information truthfully, accuratelyand completelyStrengthen strategic cooperationConduct experience exchangeAdhere to technology innovation, etc.
Product quality managementProduct R&D and technologyinnovationOccupational health and safety
Leader interviewsJob evaluationSymposiums
Conduct roundtables and townhallmeetingsConduct annual employee satisfactionsurveysOrganize diverse employee trainingprograms
Customer rights protectionProduct quality managementProduct R&D and technologyinnovation
Daily operation communicationProfessional service team/salesteamCustomer talks
Formulate the "Robust & Reliable"quality policy to ensure qualityConduct customer satisfaction surveysEstablish a sound complaint handlingmechanismCustomers
Media
Information security and privacyprotectionBusiness ethicsProduct R&D and technologyinnovation
Release information to the publicmediaOrganize media meetingsAccept media interviews
Conduct training on information security,business ethics, etc.Participate in interviews, talks and othermedia activities
Governmentor supervisoryauthorities
Risk controlResource and energyconsumption managementProduct R&D and technologyinnovation
On-site inspectionProject approvalWork report/meeting discussion
Conduct daily communication andreportingAccept supervision and assessmentStrengthen operation compliancemanagement
Suppliers
Information security and privacyprotectionBusiness ethicsSupply chain management
Daily communicationSpecial meetingsSupplier exchange meetings
Adopt TQRDCESGS managementdimensionsConduct annual audits on key suppliers
Well-planned Strategy: Safeguard Sustainable Development
NOVOSENSE attended the 2023 China AutomotiveSupply Chain Summit (CASCS)
On November 10, 2023, Mr. Wang Shengyang, Chairman of NOVOSENSE, was invitedto attend the 2023 China Automotive Supply Chain Summit. Under the theme "Reshapeand Restructure", the summit placed significant emphasis on the pivotal topics ofintelligence and electrification within the automotive sector. During his address, Mr. Wanghighlighted two prominent trends shaping the automotive industry: the rapid evolutiontowards intelligent technologies and new energy, and the accelerating pace of new modeldevelopment from R&D to mass production. Through engaging with industry leaders andexperts, including car manufacturers and auto parts suppliers, we gained valuable insightsinto our customers' evolving needs and future challenges. This knowledge equips us tofoster stronger collaborations.
We made extensive reference to industry leading practices and industry hotspots, combined feedback from stakeholders and externalexperts, and studied domestic and international sustainability standards and ESG rating indicators in the capital market to identify materialissues reflecting the company's impact on society, environment, and governance.
We prepared the NOVOSENSE Stakeholder Survey Questionnaire 2023, invited internal and external stakeholders to fill out thequestionnaire online, and analyzed the questionnaire results to obtain the importance scores of the 18 issues.
We ranked and analyzed the material issues from the two dimensions of "importance to business management" and "importance tostakeholders" to truthfully reflect the company's performance on relevant issues.
Issueidentification
Issueassessment
Matrixgeneration
Critical Issue Analysis Process
During the Reporting Period, in addition to regular daily communication, we carried out various stakeholder communication activities, such assupplier conferences and media summits, to enhance communication with stakeholders.
Analysis of Material Issues
We attach importance to the identification and management of ESG issues. Based on the industry and the company's operationmanagement, we identified, assessed, and screened important sustainability issues, and on the basis created the 2023 ESG materialissues library of NOVOSENSE. We sorted outed the material issue matrix for this report in the form of interviews and questionnaires.
/SVUXZGTIKZUH[YOTKYYSGTGMKSKTZ
Importance analysis matrix of material issues
.OMN
High
Importance to
stakeholders
2U]
Issue No./Issue
In the future, we will continue to pay attention to feedback from various stakeholdersand update the issue library, and plan to expand the survey scale based on the originalstakeholders participating in material issue assessment when conditions are ripe. Ouraim is to better understand the demands of various stakeholders, thereby supportingthe adjustment of business management strategies and the deepening of sustainabledevelopment efforts.
The matrix categorized the materiality of issues into four tiers based on their importance to stakeholders and to business management, asfollows:
1 Green operation2 Response to climate change3 Clean energy and renewable energy use4 Resource and energy consumption management5 Occupational health and safety6 Human capital management7 Career development and training
8 Employee care and rights9 Supply chain management
10 Customer rights protection11 Information security and privacy protection12 Product quality management13 Product R&D and technology innovation management14 Charity15 Corporate governance16 Risk control17 Business ethics
18 Economic performance
EnvironmentalSocial Governance
People First: Support Employee Growth
NOVOSENSE adheres to the people-orientedphilosophy, actively responds to the United NationsSustainable Development Goals 3, 4, 5, 8, and 10,and recruits and retains employees by providinga safe and comfortable working environment andcreating a career platform for shared growth forcompany and employees.
People First:
Support EmployeeGrowth
OurActions
Ensure workforce diverse and treat themequallyOffer an industry-competitive compensationand benefit packageTake actions to improve employeeexperience based on annual employeeengagement and satisfaction surveysProvide various training programs foremployee growthProtect employee health and safety andprevent accidents
QualityEducationGood Healthand Well-being
Gender Equality Decent Work and
Economic Growth
ReducedInequalities
Our EmployeesEmployee Data
As at the end of the reporting period, NOVOSENSE had a total of 859 employees, as follows:
Employee RecruitmentWe formulate recruitment policy, strictly abiding by the Labor Law of the People's Republic of China, the Labor Contract Lawof the People's Republic of China, and other applicable laws and regulations, and formulate the Recruitment ManagementRegulations. Adhering to principles of open recruitment, equal competition, and merit-based recruitment, we hire employeesby recruitment plan from each department. We uphold consistency across our recruitment procedures and personnel selectioncriteria. We guarantee fair treatment for all candidates and strictly prohibit any discrimination based on ethnicity, race, skincolor, religious beliefs, gender, age, disability, or any other protected status. We prioritize respecting and safeguardingcandidates throughout the recruitment journey, while adhering to the principle of mutual selection.We prioritize internal referrals and leverage social recruitment platforms, while also fostering stronger partnerships withuniversities to draw in top-tier graduates. Our goal is to cultivate an inclusive and diverse team, and here's how we approachrecruitment to achieve that:
In 2023, we provided 13 internship opportunities, for R&D and some functions, to help interns transit from campus to workplace.
<3040-50 >50
359 41980 1
41.79%48.78%
9.31%0.12%
Gender Location
EmploymentType
Age
Education
Ethnicity
Male553306
35.62%64.38%
49.36%
50.64%
99.19%
0.81%
Han
97.54%
Domestic
Other ethnicities
2.46%
Doctor's degree
Bachelor's Degree
1.16%
43.19%
Others
39.81%
15.83%
People First: Support Employee Growth
Our recruitment team conducts fair assessments of all applicants,focusing solely on their qualifications and experience, rather thantheir background or status.Fair assessment
We unequivocally condemn any form of discrimination,encompassing but not confined to gender, age, race, religiousbelief, or physical status. We actively encourage employees andapplicants to voice any concerns or queries, and we will promptlytake suitable measures to address them.
Anti-discrimination
policy
We champion equal employment opportunities and strive toensure a fair evaluation for every applicant, irrespective of theirbackground.Equal opportunities
We warmly welcome applications from all qualified candidates.We firmly believe that the rich diversity of our employees'backgrounds fosters a breadth of perspectives and innovativeideas, ultimately enhancing our team's creativity and overallperformance.Diverse hiring
Employee Exit
We uphold the legal rights and interests of former employees during the resignation process, ensuring all steps are lawful andcompliant. Furthermore, we are open for former employees rejoining us in the future.In 2023, the voluntary turnover rate of NOVOSENSE employees was 9.31%.
2023 MOMENTUM AWARDS | HR Management Excellence Award by MoSeekerHuman Resources Management
2023 Outstanding Employer Award by 51Job2023 Best Practice Award for Digital Talent Development in Human Capital
Management Practice Competition by KNX
2023 Talent Development - Excellence Award byShanghai Integrated Circuit Industry Association
Labor contractsigning
We adhere strictly to the Labor Contract Law of the People's Republic of China and all relevant locallegislations. We ensure that 100% of our employees are provided with labor or service contracts that complywith regulatory standards, explicitly stating their positions, working hours, labor protections, and compensationdetails.
Employees' Rights and Interests
Protection of Employees' Rights and Interests
NOVOSENSE upholds a people-centric approach, safeguarding the rights and interests of employees and fostering a conducive work culture. Weadhere strictly to the Labor Law of the People's Republic of China, the Labor Contract Law, and other pertinent legal frameworks in our operatingregions, ensuring a safe and healthy working environment. We have established robust recruitment and compensation scheme, respecting therights and interests of each employee and offering competitive compensation and benefits packages. Through our actions, we earn the trust andsupport of our employees, fostering harmonious and stable employee relations.We have also received external recognition in talent management:
People First: Support Employee Growth
Prohibition of childlabor and forcedlabor
The company strictly abides by the Regulations on the Prohibition of Child Labor and other applicableregulations of the People's Republic of China. We steadfastly uphold the principle of not employingindividuals under 18 years of age. Should any instance of child labor misuse be discovered, the labor contractwill be promptly terminated. If any child labor is found to be misused, the labor contract will be terminatedimmediately. Furthermore, we ensure that employees receive appropriate protections and benefits, and weprohibit the employment of individuals lacking the necessary work abilities or conditions, as well as the useof forced or compulsory labor. We have implemented robust systems and mechanisms to oversee employees'hiring, training, and working conditions, including regular inspections, compliance reporting, and complaintchannels. These initiatives aim to guarantee that all employees are treated with respect and fairness in theworkplace.
Comprehensiveperformancemanagement
NOVOSENSE has comprehensive performance management by a four-step PDCA cycle: setting clear goals,providing coaching and feedback, conducting thorough performance appraisals, and applying the results.In 2023, we rolled out a leadership program, equipping managers with performance management tools forthe performance module and fostering a culture of sharing and learning from practical outcomes. Duringthe performance appraisal process, we conduct thorough communication and an unbiased evaluation ofemployees' overall performance for the current year. To guarantee fair dialogue, the company organizesdedicated sessions for performance communication and guidance prior to the annual review, specificallytailored for managers and employees. In order to ensure fair evaluation, we ensure the relative fairness andobjectivity of evaluation through layer-by-layer evaluation and coordination among employees, managers,executives and CEO. If employees have objections to performance results, they can file an appealthrough reasonable channels, and the Human Resources and Administration Center will take the lead incommunication and feedback.
Compensation andbenefits
We foster harmonious and stable labor relations by offering comprehensive benefits that complement thestatutory entitlements mandated by national laws and local regulations. In 2023, we've enhanced our benefitspackage to boost employee satisfaction, including upgrading supplementary commercial insurance coveragefor employees and their children, providing comprehensive medical coverage for employees' daily healthcareneeds, and offering comprehensive medical check-up packages for employees and their families. Additionally,we offer generous supplementary annual leave in addition to the statutory annual leave mandated by theLabor Law.
Human-centricmanagement
NOVOSENSE embraces a human-centric management approach that harmonizes standard and flexibleworking hours. Under the standard working hours framework, employees have the flexibility to adjust theirschedules with the approval of their immediate supervisors. Additionally, we offer remote VPN solution,facilitating the ability for our employees to work remotely or from home efficiently.
Regular, once every one to two monthsNOVOSENSE fosters a culture of open communication,where management and employees engage in face-to-face interactions to discuss business updates andpromptly address any employee queries
Regular, once every six monthsSharing of industry trends, business updates, departmentalvital achievements, and corporate culture and valuesQ&A on employees' common concerns
In September 2023, the company successfully held the 2023 townhall meeting. Chairman Wang Shengyang delivered acomprehensive business review and unveiled the company's future strategic roadmap to all employees. Additionally, variousdepartments showcased their latest achievements, encompassing technological advancements by the R&D team and significantcommercial breakthroughs by the marketing division.Furthermore, the HR department capitalized on the townhall meeting to propagate NOVOSENSE's core cultural values and recognizeoutstanding contributors. This townhall meeting not only illustrated the company's overarching strategic vision, emphasizing theparamount importance of teamwork and culture, but also served as a platform for employees to gain a profounder understanding ofthe company's developmental trajectory.
2023 Townhall Meeting
Roundtable
TownhallMeeting
Employeecommunication
At NOVOSENSE, we prioritize actively listening to our employees' voices and feedback. To further enhanceengagement, we established a labor union during the reporting period and conducted its inaugural committeeelection. This union is accessible to all employees and organizes diverse collective activities, fostering opencommunication channels.Through a range of interactive activities, we strive to maintain seamless communication channels with ouremployees and stay updated on their well-being and progress.
Featured event
People First: Support Employee Growth
Engagement and satisfaction score: 87.75Engagement score: 88.87Satisfaction score: 87.51
88% of active employees participated in the survey
In 2023, our employee shareholding was as follows:
Since the company's listing in 20222 employee restricted voting incentives have been implemented, granting shares to employees507 person/times on a cumulative basisa total of 8 million restricted voting shares, representing 5.61% of the total share capital,have been granted
Employeeengagementand satisfactionsurvey
Employee stockownership
Every December, we conduct a comprehensive employee engagement and satisfaction survey to gauge ourstaff's overall perception of the company, engagement levels, and satisfaction with various aspects such asthe work environment, compensation, growth opportunities, and promotions. Additionally, this survey servesas a platform for employees to voice their ideas and suggestions. The survey results are then disseminated toall employees in January of the subsequent year.In the 2023 employee engagement and satisfaction survey,employees participated enthusiastically (88% of active employees participated in the survey) and scored
87.75 out of 100 for engagement and satisfaction.
NOVOSENSE has fully implemented the employee stock ownership plan (NOVOSENSE No.1, No.2, and No.3employee stock ownership platforms established before listing, and two equity incentives implemented afterlisting) to stimulate employees' enthusiasm for work, link employees' personal growth with the company'sgrowth, and promote employees to lead the company to better development and growth.
In this all-employee survey, we used the engagement dimensions (identification, achievement,satisfaction, loyalty, recommendation, and effort) to understand employees' attitudes toward theorganization and work, and used the satisfaction dimensions (good direction, good work, goodculture, and good employees) to identify the factors that drive employee engagement, locatedproblems, and understood the root causes. The survey result showed an engagement score of
88.87 and a satisfaction score of 87.51. With the collaboration of heads from various departments,
we formulated targeted improvement initiatives and periodic review plans to ensure continuousprogress.
2023 Employee Satisfaction Survey Results
Suzhou Novosense Microelectronics Co., Ltd.Matters relating to employee equity incentives during the reporting period:
June 21, 2023
September 18, 2023
October 25, 2023
The company held the 26th meeting of the second Board of Directors and the 17th meeting of the second Board of Supervisors,considered and passed the Proposal regarding the Satisfaction of Vesting Conditions for the First Vesting Period of the Company's2022 Restricted Stock Incentive Plan and other proposals, and approved the company to handle share vesting related matters for173 eligible incentive recipients in accordance with the relevant provisions of the incentive plan, with a total of 959,254 sharesvested. These vested shares were listed and circulated on July 12, 2023.
The company held the second extraordinary general meeting of shareholders in 2023, and considered and passed proposals suchas the Proposal on the Company's 2023 Restricted Stock Incentive Plan (Draft) and its Summary. On the same day, the companyheld the 4th meeting of the third Board of Directors and the 4th meeting of the third Board of Supervisors, and considered andpassed the Proposal on Granting Restricted Shares to Incentive Recipients to grant 3.8 million restricted shares to 292 incentiverecipients on the grant date of September 18, 2023 at a grant price of 49 yuan/share.
The company held the 6th meeting of the third Board of Directors and the 6th meeting of the third Board of Supervisors,considered and passed the Proposal regarding the Satisfaction of Vesting Conditions for the First Vesting Period of the ReservedGrant Portion of the Company's 2022 Restricted Stock Incentive Plan, and approved the company to handle share vesting relatedmatters for 32 eligible incentive recipients in accordance with the relevant provisions of the incentive plan, with a total of 79,579shares vested. These vested shares were listed and circulated on November 9, 2023.
959,254
shares were vested in 173eligible incentive recipients
3.8 million
restricted shares were granted to 292 incentiverecipients at a grant price of 49 yuan/share
79,579
shares were vested in 32eligible incentive recipients
People First: Support Employee Growth
Employee ActivitiesWhile offering competitive compensation and benefit packages, NOVOSENSE has launched a series of employee-caring initiatives and activities,such as monthly afternoon tea, flower arrangement on Women's Day, Christmas activities, etc., to enhance the company's cohesion.
Monthly Afternoon TeaIn 2023, we organized monthly afternoon tea events in Suzhou,Shanghai, and Shenzhen offices.
Flower Arrangement on Women's Day
On March 8, 2023, Women's Day, we organized flowerarrangement activities for female colleagues in Suzhou,Shanghai, and Shenzhen offices, and distributed small gifts tocolleagues in other offices.
Housewarming Ceremony in Chengdu Office
Considering the growing team in our Chengdu office, we held agrand housewarming ceremony in June 2023 after the renovationwas completed.
Christmas Activities
Taking advantage of the festive spirit of Christmas, we preparedthoughtful gifts, engaging games, and festive afternoon tea for allour colleagues in our local offices.
In the afternoon of May 17, we held the 10th anniversary celebration in Suzhouand Shanghai. The impassioned speeches of the management, the case sharingof outstanding employees, and the blessing videos recorded by the three foundersadded icing on the cake for the celebration. The online gathering allowed employeesfrom all over the world to share about the past decade, and the cross-regionalgathering enhanced the integration among teams. The event culminated in a livelyoffline interaction, filled with joyful moments and camaraderie. This 10th anniversarycelebration not only honors our journey but also ushers in a new era of growth,rejuvenating our team spirit and igniting fresh motivation.
In October 2023, we organized the Citywalk around Jinji Lake, which was the firsthiking event organized after the establishment of the Labor Union and attracted 66participants. The hiking route was 14 km long and the hiking event lasted 3 hours.Before the hike began, the working group thoughtfully distributed supply packs toprovide participants with sufficient energy. There were 4 check-in points along theway, and special rewards were provided to the first ten people to reach the key points.After the hike, the working group provided each participant with a carefully preparedsouvenir, which brought this energetic hike to a perfect end. This hiking eventorganized by the trade union promoted solidarity among employees, contributed totheir health, and injected new vitality into the corporate culture.
NOVOSENSE's 10th anniversary celebration in 2023
Citywalk around Jinji Lake
Featured Event
Featured Event
People First: Support Employee Growth
NOVOSENSE's 5th Sports Meeting
In addition to organizing various activities to enrich the lives of employees, we have prepared holiday gifts for employees during festivals:
Dragon Boat
Festival
Children's Day
Mid-Autumn
Festival
In November 2023, we held NOVOSENSE's 5th Sports Meeting in Shanghai, including basketball, badminton, and soccer matches.This sports event not only strengthened the physical fitness of employees, but also promoted friendship and cooperation amongcolleagues. The matches demonstrated NOVOSENSE's spirit of unity and hard work, and created a vibrant working atmosphere.
Featured Event
Training and Career Development
Employee Training
To ensure employees’ access to abundant learning opportunities and foster the continuous enhancement of their skills, the company orchestratesa myriad of rich and diverse learning activities. Moreover, to incentivize the accumulation and transmission of internal knowledge and expertise,the company identifies and nurtures internal trainers. Additionally, to address the professional requirements of various business departments,the company invites colleagues with extensive knowledge and experience to extract and share their insights. This facilitates the transformationof implicit knowledge into explicit knowledge and organizes existing explicit knowledge, thereby propelling the development of our knowledgemanagement system. By continually refining our knowledge-sharing management mechanisms, we endeavor to foster a culture of continuouslearning and contribute to the establishment of a learning organization.To fortify the development of our talent training system, the company categorizes courses into general and professional tracks, ensuringcomprehensive coverage for all employees through a blend of offline and online modalities. This approach empowers employees to autonomouslyselect and enroll in courses tailored to their individual developmental stages and business requirements.At the same time, we have established internal trainers and internal knowledge sharing management systems to build a more positive and opensharing culture.
During the reporting period, NOVOSENSE invested nearly 4 million yuan in employee training throughout the year, with 500 training sessions andnearly 7,500 training person-times.
The internal trainer management system aims to enable the company to better extract and disseminate the professionalknowledge of the members of the organization, enhance the knowledge value of the organization, put into practice the culturalvalue of "Keep Learning", and provide employees with more opportunities for self-cultivation and development, so as to achievewin-win results for the company and employees. In 2023, the number of company-level certified internal trainers increased tomore than 10, and the internal training provided covered nearly 100 people.
The internal knowledge sharing management system aims to promote the accumulation,sharing and dissemination of knowledge and experience within the company, stimulate theenthusiasm and passion of employees to actively share, and realize the integration of internalresources and the improvement of human efficiency.
Percentage of employees trained Average training duration/hours
By gender
Male employees 100%22Female employees 100%21.6
By job grade
Senior management 100%55.7Middle management 100%48
Other employees 100%21.8
People First: Support Employee Growth
Employee's Career Path and Specialized Training
Based on the company's business development needs and each employee's own plan, we customize career development pathsfor our employees: professional and technical ladder, managerial path, and horizontal rotation:
Professional ladder
Horizontal rotation
Managerial path
NOVOSENSE helps employees improve their professional and technical capabilitiesNOVOSENSE provides supporting leadership programs to help managers adapt totheir rolesNOVOSENSE provides internal transfer and internal competition to help employeesbroaden their career development pathNOVOSENSE is committed to promoting the sustainable development of the talent pipeline. We have developed a clear job structure to guideand assist employees in their career development. During the annual salary adjustment window, we consider whether employees' abilities andwork performance meet the requirements for promotion to new positions, while taking into account employees' willingness as the basic standardfor employee promotion and selection mechanism.For the above three different development paths, NOVOSENSE has specially developed a series of training programs:
"Xin Huo" Program (fresh graduate training)The "Xin Huo" Program is inspired by the saying "a single spark can start a prairie fire". Representing the new force of thecompany and the reserve talents of the domestic semiconductor industry, fresh graduates are "sparks". Chips are the "heart" ofthe electronic information industry. NOVOSENSE's mission is to build a green, smart and connected world with semiconductors,namely, an ambition to "start a prairie fire". We hope that young people, as sparks, can keep "sensing, integrating and improving"while achieving a perfect transition from students to employees. In 2023, more than 100 people joined the "Xin Huo" Program.
"Xin Kong" Program (manager training)
The "Xin Kong" Program is inspired by "make progress every day" in Wise Rulers of the Wei and Jin Dynasties and "soreto the sky" in "Enjoyment in Untroubled Ease · In the Northern Ocean There is a Fish", implying that qualified managerscan continuously improve their own abilities and lead the team to make progress and achieve success. This program takesmanagement knowledge as the core to help managers clarify their thinking and roles and responsibilities; takes managementpractice as the starting point to help junior managers master the ability to make plans, manage business, and lead teams; andtakes diversified interactions as the link to break down the walls of hierarchies and departments, so that managers can learn toexamine themselves and improve their cognition. In 2023, more than 100 people joined the "Xin Kong" Program.
"Xin Yun" Program (professional skills training)
As the carrier of the company's internal training system, the "Xin Yun" Program is based on resource building, supported by adigital learning platform, and guaranteed by operation management. At present, resource building focuses on curriculum systemand lecturer building, continuously consolidating the system foundation while realizing full-process operation management oftraining through the training system. Regarding "Master" topics for all employees, the program focuses on general knowledgeand business, and conducts regular thematic sharing to expand knowledge, so as to build a culture of continuous learning for allemployees and create a learning organization. By 2023, the "Xin Yun" Program has achieved full coverage of all employees.
Organization Chart of NOVOSENSE's Safety CommitteeCTO OfficeCOO OfficeOperation
OfficeEHS
QualityOffice
CentralFunctions
BoardSecretary
Office
Goals/Indicators
● Major safety accidents
● Major re accidents
● Safety inspection - hidden danger rectication rate
● Safety education and training - pass rate
● Special operation positions - certication rate
● Major environmental pollution accidents
● Occupational disease incidence rate of employees
● Number of violations in inspection and maintenance work
%
%
%
Production safety goals and plans for 2023
CEO
Occupational Health and SafetyNOVOSENSE's philosophy of safety is "Life Above All" and we consider it a fundamental responsibility to ensure a safe working environmentfor our employees. We further consolidate the foundation of production safety by improving the system of production safety and increasing theinvestment in production safety. We strive to create a safe and healthy working environment, maintain the safety of every working environment,and try our best to avoid any hazardous factors that lead to or may lead to physical harm to employees. In 2023, we invested approximately481,000 yuan in production safety, and had no safety violations with a significant impact on our employees and no employee work-related injuriesor occupational diseases.Based on the Work Safety Law of the People's Republic of China, the Law of the People's Republic of China on the Prevention and Control ofOccupational Diseases, and other relevant laws and regulations of the places where we operate, we have formulated the Management System forSafety Management Organizations and Management Personnel by drawing on management concepts and methods from leading global practices.We have established a production safety committee and clearly defined the production safety responsibilities of departments and personnel atall levels. In accordance with the Production Safety Meeting Management System, we hold at least a production safety related meeting everyquarter.
To ensure the effective implementation of the production safety system, we set relevant goals every year and break them down into specificimplementation plans:
People First: Support Employee Growth
Work
Plans
Carefully study all laws and regulations related to production safety, and implement all safety responsibilitiesrequired by laws and regulations and the company;Formulate and implement safety education and training programs, and ensure that 100% of the personnel in the"two positions" are certied;Strengthen the maintenance and regular calibration of equipment and facilities;Participate in comprehensive safety inspection at least once a quarter to ensure that potential accidents arepromptly rectied and no major accidents occur;Organize at least one special safety meeting every quarter to listen to reports from various departments andconrm that various safety tasks are progressing steadily as planned;Require all departments to strictly follow various regulations and operating procedures during the productionprocess, and organize revisions in a timely manner if there are major changes;Organize the creation of emergency rescue plans for production safety accidents, prepare for variousemergencies, and participate in emergency drills at least once a year;Implement the annual safety management assessment requirements, announce the performance of the currentyear's production safety work to employees through the trade union or employee representative meeting orsafety committee at the end of each year, and announce the annual production safety performance and the nextyear's production safety goals.Production Safety TrainingWe continue to improve our safety culture, further enhance safety awareness through employee training, and regularly carry out safety awarenessand safety capability training in multiple dimensions around the occupational health and safety management system. We want to ensurethat employees understand the necessary production safety knowledge, improve employees' safety literacy and safety awareness, enhanceemployees' attention to production safety, and create a strong production safety atmosphere.
Safety costsTotal investment:
480,529yuan;
Safety trainingOrganized 12 trainingsessions throughout the yearTotal number of participants:
On November 9, 2023, the 32nd National Fire FightingDay, NOVOSENSE's Suzhou office worked closelywith 16 other companies in the park to conduct afirefighting day emergency drill on November 8 withthe theme of "Prevention First, Life First". The drillincluded the company's independent emergencyresponse and disposal in the early stage of a fire, theemergency response of the park and rescue station,and the handling of personnel injuries. Through thisdrill, employees' social security awareness and riskavoidance and escape capabilities were significantlyimproved. This activity not only tested the fireevacuation level of the company and the park, but alsostrengthened the employees' emergency responsecapabilities in sudden fire accidents, providing strongsupport for the company's overall safety management.
NOVOSENSE's production safety trainingdata in 2023:
Fire drill activity in 2023Featured Event
●●●●●●●●
In response to the call of China Charity Day, NOVOSENSE participated in the "99 Charity Day" donation event, an annual charityevent held by Xietang Street in Suzhou. The company not only donated 20,000 yuan to the event, but also promoted the spirit ofcharity with practical actions, helping social forces engage in charity activities more extensively. This donation was intended tosupport the charity program of Xietang Charity Branch and provide more care and help to the community. By actively participatingin charity activities, NOVOSENSE has demonstrated its corporate social responsibility and contributed to a more harmonioussociety.
Donation Certificate from Suzhou Industrial Park Charity Federation
Engagement in Charity Activities
NOVOSENSE keeps fulfilling corporate social responsibility while developing rapidly and growing in scale. We actively participate in communitycharity activities in the places where we operate, give back to society through donations, agricultural assistance and other behaviors, andstrive to promote harmonious integration between the company and the community and achieve common development of the company and thecommunity.
NOVOSENSE participated in the "99 Charity Day" donation eventFeatured Event
People First: Support Employee Growth
Agricultural assistance activity - purchasing oranges from disabled fruit farmersIn early November 2023, NOVOSENSE launched an agricultural assistance activity - purchasing oranges from disabled fruit farmersand distributing them to employees and customers who visited the company during the month. The amount reached 41,839 yuan.This warm initiative supported disabled fruit farmers, conveyed the company's care for employees and customers, and also fulfilledthe company's social responsibility.
NOVOSENSE always believes that the company's development and growth cannot be separated from the support and trust of the society. In thefuture, we will continue to actively promote the development of social welfare undertakings, encourage employees to participate in public welfareand charity undertakings, support social welfare with practical actions, and contribute warmth to the society. The company's labor union hasestablished a public welfare activity planning mechanism, and will carry out public welfare activities such as planting trees on Arbor Day, visitingorphanages, assisting agricultural activities, and honoring and visiting the elderly on Double-Ninth Day in 2024.
Featured Event
Continue to lay out sustainable businesses, withthe company's automotive electronics and pan-energy businesses accounting for about 90%Further expand the R&D team, with about 50%of the company's employees belonging to theR&D departmentCooperate with a number of colleges anduniversities, focusing on joint training of talentswhile promoting industry-university-researchcooperationEnhance the resilience of the supply chain andbecome a reliable partner in the industry chainand business processNOVOSENSE actively responds to the UnitedNations Sustainable Development Goals 7, 9, 11,and 17, focusing on R&D and innovation, pursuingexcellent quality, being a reliable partner in theindustry chain and business process, and adheringto long-term value.
Co-creation andSharing:
Create ExtraordinaryValue
OurActions
Affordable andClean Energy
Industry,Innovation andInfrastructure
SustainableCities andCommunities
Partnershipsfor the Goals
Co-creation and Sharing: Create Extraordinary Value
PSD0Review
PSD4Review
PSD1Review
PSD2ReviewPSD3Review
Mass production
Certification andpilot production
Engineeringintroduction
Technology Innovation
Investment in R&D and InnovationNOVOSENSE continues to develop competitive chip products around customer system applications, and has built solid core technology barriersin multiple fields such as signal chain, sensor, power & driver, isolation and interface. At the same time, the company attaches importance tothe building of basic R&D capabilities, including core IP accumulation, functional safety development capability, process development capabilityand product engineering capability, forming the R&D base of NOVOSENSE. In addition, the company encourages innovation, especially aroundcustomer applications, and strives to provide greater value to customers through new products, technologies and processes. Over the years,NOVOSENSE has successively obtained a number of certifications issued by governments at all levels. These include recognition as anenterprise of leading talents in science and technology, high-tech enterprise, national specialized, sophisticated, distinctive and innovative "LittleGiant" enterprise, most promising high-tech enterprise in Jiangsu, enterprise technology center in Jiangsu, and engineering technology researchcenter in Jiangsu. Additionally, we have undertaken a number of scientific and technological projects for the transformation of scientific andtechnological achievements in Jiangsu. The company has won numerous honors in the industry, including 'China Chip' Excellent TechnologyInnovation Product Award, China's Top 10 Semiconductor MEMS Enterprises, China Analog Semiconductor Leapfrog Achievement Award, andTop 10 Best Domestic Chip Manufacturers.R&D System ProcessWe have established a complete R&D system process:
Market researchMarket demandanalysisProject managerdesignation
Mass production transferReliability verificationLaboratory evaluationPackaging introductionTest introductionProduct evaluationtestPilot productionreview
Wafer processverificationPackaging processverificationFull coverage testData analysisMass production review
Relevant personneltrainingProduct release
Feasibility analysisProject initiation review
Circuit designSimulationverificationPackage designWafer tape-outProductspecificationsDesign review
Market demand Project initiation
Design anddevelopment
By the end of 2023, the company and its subsidiaries have acquired a total of 197 intellectual property projects, including:
Patent Application
In 2023, the company conducted 2training sessions, with a durationof4 hours and more than 400
participants, covering patent basicsand patent mining.
Intellectual Property Protection and TrainingWe have formulated a sound Intellectual Property Management System of Suzhou NovosenseMicroelectronics Co., Ltd. All R&D and relevant personnel must actively evaluate innovationpoints and apply for patents or protect them in the form of technical secrets during the newproject initiation process. In the new project initiation stage, we carry out special patentinfringement risk investigation and make design avoidance for risky patents.The company conducts training related to intellectual property protection every year, coveringR&D colleagues. In 2023, the company conducted two training sessions, with a duration of 4hours and more than 400 participants, covering patent basics and patent mining.
Innovative Process ImprovementsWe continue to strengthen technical product development and solution innovation, including specialized automotive ICs, power devices, powerpath protection ICs, various sensor solutions, and chips based on NOVOSENSE's proprietary processes, which help customers adopt smaller,more energy efficient and more environmentally friendly designs at the system level. In addition to the development of technical products andsolutions, we also emphasize the improvement of production processes, focusing on low carbon and high performance throughout the entire lifecycle of our products, in terms of product design and production process. In 2023, we completed a number of process modifications:
Note:(1) "Others" in the above table refers to layout designs of integrated circuits.
(2) The above table shows the company's intellectual property rights in China. During the reporting period, the company
filed 8 new overseas intellectual property rights applications.We will continue to strengthen the conversion and output of intellectual property results of innovation projects. For core projects, patent mining iscarried out during the project initiation stage, and technical briefings and patent layouts are explored in a targeted manner according to the targetmarket, product functions and applications.
New in the current year Cumulative
Number ofapplications
Number ofacquisitions
Number ofapplications
Number ofacquisitionsInvention patentsUtility model patentsSoftware copyrightsOthersTotal
Co-creation and Sharing: Create Extraordinary Value
Isolation Process
We worked closely with wafer suppliers to develop and continuously improve isolationprocesses to achieve higher withstand voltages, thereby enabling systems to withstandhigher operating voltages and improve energy efficiency, and reduce system size tominimize material loss in the system. In addition, the use of high-voltage capacitiveisolation solutions (compared to traditional optocoupler solutions) allows chips to havea faster signal frequency for more accurate sensing and control, resulting in higherefficiency.
Industry Cooperation
As a leading analog chip designer in China, NOVOSENSE is well aware that China's local analog chip field has made certain progress. However,due to the high technical threshold of analog chips, long product life cycle, and high requirements for stability and cost, the domestic self-sufficiency rate is still relatively low.In this context, NOVOSENSE is actively committed to in-depth cooperation with the industry to promote common progress in the field of analogchips. The company actively participates in industry summits, forums and other activities to share experiences and discuss cutting-edgetechnologies with experts and enterprises in the same industry, providing strong support for the entire industry. Through these collaborationsand participations, NOVOSENSE not only provides opportunities for continuous innovation of its own technology, but also helps the industryachieve greater achievements in technological breakthroughs, standard setting and market development. By increasing the self-sufficiency rate ofdomestic analog chips, it promotes industrial development and contributes to the prosperity of China's chip industry.
Cooperation and Co-creation
From March 31 to April 2, 2023, the 9th China EV100 Forum with the theme ofAdvancing the Modernization of China's Automotive Industry was held at the DiaoyutaiState Guesthouse in Beijing. Wang Shengyang, Chairman of NOVOSENSE, was invitedto attend and deliver a keynote speech on the topic of Development and Application ofAutomotive Analog Chips. He put forward suggestions for the development of domesticautomotive analog chips: on the one hand, the entire industry should work together toaccelerate the process of localization, enhance industry chain collaboration and improvethe maturity of talents; on the other hand, China chip companies should continue tobuild their internal strength and improve product continuity, process integrity and qualityreliability. At the exhibition site of the China EV100 Forum, NOVOSENSE exhibited itsautomotive electronic solutions such as DC-DC/OBC/PDU, thermal management, BMS,inverter/powertrain, automotive lighting, body/vehicle (domain) controller, etc. for newenergy vehicles.
BCD Process
We worked closely with large wafer fabs to continuously improve the high-voltageBCD process, which can improve system reliability and energy efficiency and achieveenergy saving in industrial motors, solar power generation, electric drive inverters fornew energy vehicles, smart actuators, power path protection chips and other high-voltage systems.
Sensor Process
We worked closely with wafer fabs to continuously develop and improve sensorprocesses for more accurate signal sensing (including current, pressure, temperature,humidity, angle, etc.) in industrial motors, solar power generation, electric driveinverters for new energy vehicles, and other high-voltage systems, enabling moreintelligent control and achieving energy saving.
NOVOSENSE attended China EV100 ForumIndustrial Event
In May 2023, the Automotive Electronics and Electromagnetic CompatibilitySubcommittee of the National Technical Committee of Auto Standardization(NTCAS) held the First Series of Meetings of the 2023 Automotive ChipStandard Research Working Group in Jinan. NOVOSENSE took the leadin drafting the Technical Requirements and Test Methods for AutomotiveLIN Transceiver Chips, and discussed the LIN transceiver chip standardwith automakers and parts suppliers. With the development of automotiveelectrification and intelligence, the demand for LIN transceiver chips isincreasing rapidly. As one of the research organizations for the developmentof the automotive chip standard system, we actively cooperate with andparticipate in the development of the standard system, promote automotivechips that meet market demand through collaborative innovation andindependent R&D, drive high-quality development of the industry.
In late 2023, NOVOSENSE announced that it had officially joined the Automotive Electronics Council (AEC) as a member of the AECComponent Technical Committee. AEC is committed to establishing a universal qualification and quality standard system for vehiclesand their components. AEC-Q100 has become the authoritative standard for automotive chip testing. By joining AEC, NOVOSENSEfurther deepens its involvement in the development of standards for highly reliable and high-quality automotive electronic components,helping to advance the industry as a whole. Since the launch of its first automotive chip in 2016, NOVOSENSE has been following AECstandards and has received wide recognition from the industry, including the highest-level ASIL-D certification with ISO 26262 FunctionalSafety Management System in 2021 and the Premium Quality Award from VDE in 2023. This demonstrates NOVOSENSE's excellentperformance and reliable reputation in the field of automotive electronics.
NOVOSENSE participated in the formulation of national standardsled by NTCAS
NOVOSENSE joined AEC
Industrial Event
Industrial Event
Co-creation and Sharing: Create Extraordinary Value
During the reporting period, we launched a number of industry-university-research cooperation projects with various universities, aiming tobroaden the technological boundaries and multiply the effectiveness of cooperation.Industry-University Cooperation
Cooperation with Fudan University:
The company has been cooperatingwith Fudan University since 2021to jointly work on the research anddevelopment of high-precision signalchain, battery management system(BMS), and next-generation sensorreadout chips, aiming to conduct in-depth research by combining theneeds and strengths of both parties.The cooperation projects include high-precision signal chains and analogfront ends of various sensors. Theseprojects not only cover a wide range offields, but also maintain a high level ofinnovation in technology, contributingsignificant academic value to theresearch and innovation of both partiesin related fields.
Paper published in ISSCC 2022 in collaboration with University of Science and
Technology of China
In October 2023, the Conference on InnovatedGlobal Supply Chain of NEV and ICV hostedby China EV100 was held in Guangzhouto discuss the transformation of the globalautomotive supply chain. On behalf ofdomestic automotive analog chip companies,NOVOSENSE attended the conferenceto jointly study the resilience building ofthe automotive supply chain and promotethe high-quality development of China'sautomotive industry. At the conference,Automotive Supply Chain CollaborativeInnovation Center (S100) was announced tobe launched, committed to building a global,low-carbon, digital, intelligent and low-cost supply chain. Wang Shengyang, Chairman of NOVOSENSE, was invited to the stage to participate in the S100 launchceremony.Yao Di, Vice President of NOVOSENSE, delivered a keynote speech, sharing NOVOSENSE's latest progress in automotivechips and NOVOSENSE's supply chain strategy and practice under the current development trend of the automotive industry.At the conference, we also showcased NOVOSENSE's automotive chip product layout, demonstrating our long-term investmentand development determination in the automotive chip field. We will continue to provide China's chip power for the electric andintelligent transformation of the automotive industry.
NOVOSENSE joined the Automotive Supply Chain CollaborativeInnovation Center (S100)Industrial Event
Cooperation with University of Science and Technology of China:
NOVOSENSE's cooperation with the university has yielded fruitful results,such as the paper published in ISSCC. These successes have not only madesignificant progress in technology, but also consolidated NOVOSENSE'sleading position in the industry. Through in-depth cooperation with theuniversity, we are able to share resources and accelerate innovation, layinga solid technical and academic foundation for future development.
NOVOSENSE's Robust & Reliable quality policy
Certified with ISO 9001:2015 Quality
Management Systems
Quality ManagementProduct Management
Product Quality ManagementBuild strength, pursue excellence, and persistin long-term value. The company alwaysattaches great importance to product qualityand reliability, adheres to high standards,and has developed NOVOSENSE's uniqueRobust & Reliable quality policy to ensurehigh-quality products and services.
With the "Robust & Reliable" quality policy as its foundation, the company adheres to strictquality control from product R&D to production to provide customers with stable and reliableproducts; with customer satisfaction as its goal, the company sticks to its commitments tocustomers and continuously improves its products and services to retain trust from customers.Adhering to the quality management concept of "quality starts from design and runs throughthe entire product life cycle", the company has built a comprehensive quality managementsystem, and ensured the implementation and execution of the comprehensive qualitymanagement system through organizational capacity building and IT-enabled process system.NOVOSENSE has established a complete internal mechanism in the business processes ofR&D, manufacturing and sales to ensure the product qualification rate, continuously meetcustomer needs, and become a robust and reliable partner for customers. Since 2015, we havebeen certified with ISO 9001:2015 Quality Management Systems by SGS.
The company pays attention to the internal building of quality management, continuously improves the relevant training system, and strengthensthe investment in quality management training. In 2023, we organized a total of 35 quality-related training courses, covering employees in R&D,quality, operations, sales and other business processes. Through diversified training courses, we aimed to improve the professional level ofour employees in quality management. The employees who participated in the training came from different functional departments. Througha cumulative total of over 130 hours of training, we ensured that all employees had extensive knowledge of key knowledge points of qualitymanagement to better satisfy our customers' needs and continuously improve our competitiveness in the marketplace, building a more solidinternal quality system for our company and laying a sustainable foundation for future development.
Quality Management Training
Co-creation and Sharing: Create Extraordinary Value
| NOVOSENSE Isolation products have passed VDE enhanced isolation certification | NOVOSENSE ISO 26262 Functional Safety Management System, ASIL D certificate, issued by T?V Rheinland | NOVOSENSE Reliability Assurance and Failure Analysis Center has obtained laboratory accreditation certificate issued by China National Accreditation Service for Conformity Assessment |
Customer Rights ProtectionCustomer Satisfaction Survey
Customer Complaints
NOVOSENSE values customer satisfaction as a key indicator of our service quality. To this end, we regularly conduct customer satisfactionsurveys and commit to submitting detailed satisfaction reports to our customers in December of each year. It is noteworthy that the customersatisfaction survey result in 2023 increased by 3.9% compared with the previous year. This significant improvement reflects our continuousimprovement and enhancement in service quality.During the survey, we used sophisticated statistical analysis methods to conduct in-depth research on all valuable customer feedback toaccurately grasp customer expectations and needs. Based on this feedback, we developed and implemented a series of targeted improvementmeasures, aiming to continuously optimize and improve customer satisfaction.Regular customer satisfaction reports are not only a self-test of our service quality, but also an important bridge for us to maintain closecommunication with customers. This channel ensures that we are able to respond to customer needs in a timely manner, continuously optimizeservice processes, and enhance customer experience.
NOVOSENSE has established and implemented the Customer Complaint Handling Procedure, which defines the timeliness requirements andoperating standards for handling customer complaints to ensure that customer needs are met in an efficient and responsible manner. In addition,this procedure includes product recall management so that we can fully and quickly cope with potential risks that may arise.Through these comprehensive management measures, NOVOSENSE strives to improve responsiveness to customer concerns and enhanceproduct quality management, thereby further enhancing customer satisfaction and establishing the company's reputation for excellence in themarketplace.
Product Certification
TQRDC Evaluation Criteria
ESG Dimension
Security Consideration
We adopt TQRDC (Technology, Quality, Response, Delivery, and Cost) as the criteria for evaluating suppliers inprocurement. Through admission considerations for production suppliers, we conduct comprehensive scoring everyquarter to ensure their performance in key dimensions.
Compliant suppliers are considered in terms of ESG (Environmental, Social and Governance) to ensure sustainability andsocial responsibility in the supply chain.Security is the last S we consider when evaluating suppliers, including cybersecurity, information security, and employeesafety. This dimension is considered to secure the entire supply chain at all levels.
If conflict minerals arenot involved, the auditresult is PASS.
If conflict minerals are involved, a new source of minerals must beselected and effective evidence of improvement and preventivemeasures must be provided in order to comply with the requirementsfor conflict-free metals.AB
Supply Chain Management
Supplier Admission
Conflict Minerals
In terms of supplier management, we have developed a comprehensive supply chain procurement mechanism that covers the entire lifecycle management of supplier inspection, admission, performance, audit, and exit, and have implemented ESG approaches in all aspects ofprocurement.In terms of supply chain management, we use TQRDCESGS as a key management dimension to ensure full control over supplier procurement,specifically:
The supply chain is a core component of a company's daily operations. We are committed to practicing responsible production practices andbuilding a sustainable supply chain system. By deepening supply chain management, strengthening quality and safety control, and promotingenvironmental approaches, we strive to build a diversified supplier base. At the same time, we continue to drive a low-carbon transformation ofour supply chain to adapt to changing market and social needs. This strategy aims to ensure the efficiency and reliability of the supply chain,while reflecting our firm commitment to responsible and sustainable operations.
As a chip company, we keep track of the international community's views and development trends on conflict minerals, and strengthenmanagement of conflict minerals. The company has formulated the Hazardous Substances Control Procedure to manage the compliance processof conflict minerals, reflecting its determination to achieve self-governance and supervision in terms of conflict minerals. We have established aneffective data management and reporting mechanism to track and monitor conflict minerals issues in our supply chain in real time, and proactivelycooperate with our customers on data reporting. The company's existing suppliers have conducted investigations with reference to the ConflictMinerals Report (CMT), and have followed the process to determine whether the investigation results meet the conflict-free metal requirements ofthe Democratic Republic of the Congo.
In 2023, the company found no suppliers involved in the use of conflict minerals in its supply chain survey. In the face of the ongoing challengesposed by conflict minerals, in the future, we will continue to monitor and improve, pay attention to international regulations and regulatory trends,and maintain close cooperation with suppliers, customers and industry organizations to jointly promote the implementation of solutions.
Investigation resultsand measures:
Green Operation: Co-build a Green Future
Launch green products and empowercustomers with green optionsGradually reduce carbon emissions andprioritize the use of new energy vehicles incooperation with car use platformsGradually increase the use of renewableenergy, such as PVEnhance employees' environmentalawareness and put up energy saving andenvironmental protection postersBased on green and sustainable business,NOVOSENSE actively responds to the United NationsSustainable Development Goals 6, 7, 11, and 13,adheres to the green and low-carbon developmentapproach, continuously improves the efciency of energyresource utilization while striving for innovation anddevelopment, and keeps inspiring new ideas for low-carbon operation based on operation practices.
Green Operation:
Co-build a Green Future
OurActions
Affordable andClean Energy
SustainableCities andCommunitiesClean Waterand Sanitation
Climate Action
Green Products
NOVOSENSE actively responds to the building of ecological civilization, integrates the green and low-carbon development approach into productdesign and application, incorporates sustainable genes into products, and innovates and develops green products to provide more energy saving,emission reduction, and green development possibilities for our customers and end-users.
We are developing an innovative isolated op amp with integratedisolated power supply, which is specially designed for serverpower supply. It can help customers' systems improve samplingaccuracy at 10% load, reduce overall system power consumptionthrough higher precision system control, and ultimately achievethe goal of system efficiency of more than 90%, and can helpcustomers' server power supply products pass the 80PlusTitanium certification. At the same time, the product's integratedisolated power supply design is also conducive to customersystem miniaturization.The product is currently under active development and is expected to be mass-produced by the end of 2024.
We have introduced an innovative product that usesa higher bandwidth current sensor to help customersmonitor higher frequency current signals. This featurehelps customers adopt higher switching frequency systemdesigns, thereby improving the overall power density atthe system level and further reducing the system size.The key application of the product is OBC for new energyvehicles. As the size of OBC/DC-DC/PDU shrinks, themutual interference between electronic componentsbecomes more serious. To address this challenge, ourproduct has been comprehensively improved in termsof anti-interference performance. This performanceimprovement can help customers adopt a smaller design,reducing the overall PCB size by at least 20% and therebyfurther minimizing the use of PCB raw materials for theproduct.Compared with the previous generation of products that only support 6.6kW/11kW, the new product can now supportpower models up to 22kW and above, providing customers with a wider range of power options. This innovativeproduct will bring more advanced and efficient solutions to the industry.
Isolated op amp with integrated isolated power supply
High-bandwidth current sensor
Featured product
Featured product
Green Operation: Co-build a Green Future
ISO 14001 Certificate
Environmental PolicyComply with laws and regulations
Energy saving and consumptionreduction
Prevention of pollution
Continuous improvement
Comply with national laws and regulations as wellas industry and local environmental policies
Use energy resources rationally and effectively,reduce waste, and adopt environmentally friendlyproducts
Establish environmental awareness among allemployees and improve the ability to prevent andcontrol pollution accidents
Implement effective improvement measuresfor problems that need to be rectified, andcontinuously improve environmental performance
As at the end of the reporting period, NOVOSENSE has been certifiedwith ISO 14001 Environmental Management Systems.
Green Office
NOVOSENSE strictly abides by the Environmental Protection Law of the People's Republic of China, the Energy Conservation Law of thePeople's Republic of China, and other applicable laws and regulations of the places where it operates. We establishe systems such as the EnergyResource Management Control Procedure to regulate the use of energy and resources, continuously strengthen the publicity and implementationof environmental protection related contents such as green office and green mobility, and strive to build ourself into a resource-saving andenvironment-friendly company, in order to enable the coordinated and sustainable development of human beings, resources and the environment.
20232022Power consumption (kWh)6,608,207.002,211,867.69Comprehensive energyconsumption (tons of standardcoal)
812.15271.84
In 2023, NOVOSENSE's new officein Suzhou was under construction.The building will use rooftop PV toa certain extent, effectively reducingdependence on traditional energy,improving the application of cleanenergy, further promoting the company'sefforts in environmental protection andsustainability, providing employees withan environmentally friendly and efficientworking environment, and fulfilling thecompany's commitment to sustainabledevelopment.
NOVOSENSE's energy consumption
Note: In 2023, NAXIWEI, a subsidiary of NOVOSENSE, entered the trial operation stage, so the energy consumption during the reporting periodincreased significantly compared with the previous year.
Energy and Resource Management
Energy Consumption
Over the years, the company has adhered to the development approach of energy conservation and consumption reduction and continuouslystrengthened scientific energy management.
With the profound changes in the global energy landscape, we are actively promoting the clean and low-carbon transformation of thecompany's energy structure, striving to transition to non-fossil energy; we are also planning to procure green power and apply PV and otherclean energy to further promote our own energy transformation.
The scope of power consumption and comprehensive energy consumption covers Shanghai and Suzhou offices as well as NAXIWEI.
Green Operation: Co-build a Green Future
In 2023, we started planning the constructionof a modular server room project, whichis scheduled to be commissioned in 2024and is expected to achieve 300,000 kWh ofelectricity savings in 2025. The solution has theadvantages of flexible scalability, high reliability,energy saving, environmental protection andintelligent management. The server roomadopts standardized design and energy-savingtechnology, and is equipped with an intelligentmanagement system for remote monitoring. Inaddition, the pre-assembly method is adoptedto shorten the construction cycle. The serverroom is compact in design and equipped with aDC variable frequency compressor and EC fan,which can save 50% energy and is expected tosave 30% of electricity cost each year.
Temperature cloud of the server room after cold aisle closure
Emissions ManagementWe strictly abide by the Law of the People's Republic of China on the Prevention and Control of Environmental Pollutionby Solid Waste and other laws, regulations and standards on environmental protection and pollution prevention of theplaces where we operate, and implement targeted and compliant treatment of waste to minimize the impact of waste on theenvironment and realize the recycling and reuse of resources.
The source of the company's waste gas is its subsidiary NAXIWEI. As the subsidiary was not established and commissioned yet in 2022,no waste gas emission data was available.
Modular data centerFeatured solution
20232022Waste gas (m3)
15,790,000
Hydrogen chloride/ton0.023
Total non-methane hydrocarbons/ton 0.312
Hazardous waste (ton) 0.30–General waste (ton) 15.90
Packaging carton (ton) 3.65
Post green office slogans
Respond to the call for
garbage sorting
Implement electricityconservation actions
Use energy-saving andconsumption-reducingmaterials
Green Office Initiatives
We actively promote green office practices and strengthen the implementation of green and environmental initiatives:
General Waste Management
The company strengthens general waste management, and specifies relevant departments responsible for the sorting and recycling of recyclablewaste, and the collection, management and treatment of domestic waste in office areas, living areas, etc. The external packaging of products andraw materials involved in the trial operation of the subsidiary is disposed of by a qualified third party after collection.
Green Operation: Co-build a Green Future
Water conservation slogan
20232022
Total water consumption/ton3,985.01,508.7Note: In 2023, NAXIWEI, a subsidiary of NOVOSENSE, entered the trial operation stage, so the energy consumption during the reporting periodincreased significantly compared with the previous year.
Waste Gas ManagementNOVOSENSE's Shanghai and Suzhou offices are the main office areas and do not involve waste gas emissions. During the trial operation stageof the subsidiary NAXIWEI, new waste gas treatment facilities were added in 2023. Waste gas generation is mainly concentrated in the bakingand sampling experimental testing process. The unorganized waste gas is collected and adsorbed by activated carbon, and then discharged afterbeing treated by water spray and meeting the standards. According to testing by a third-party testing company, various emission data are farlower than the current national and local standards.Water Resource ManagementNOVOSENSE and its subsidiaries use domestic water, but the design and development process does not involve water use. We haveformulated the Energy Resource Management Control Procedure to regulate the company's water resource management.
In order to implement energy conservation and consumption reduction, we take "awareness raising" as the primary principle and continuouslypromote energy, water and material conservation plans through awareness campaigns.
Our total water consumption in 2023:
Response to Climate Change
Governance
In terms of governance, the Board of Directors and senior management are responsible for making decisions on and monitoring the planningand actual results of the company's sustainability management. At the same time, the Brand and Marketing Communication Center servesas the ESG coordinator, working with various departments, branches and subsidiaries to promote the company's sustainability management.The Board of Directors is responsible for monitoring climate-related risks and opportunities, and identifying and studying the impact ofclimate change on our business activities through collaboration among various departments (see the "ESG Governance" section of this reportfor details). We refer to the TCFD (Climate-related Financial Disclosures) framework to gradually review the current situation, formulatestrategies, manage risks, and identify and manage indicators and goals for the risks and opportunities that may be caused by climate change.
Strategy
Climate-related risks include risks related to the transition to a low-carbon economy ("transition risks") and risks related to the physicalimpact of climate change ("physical risks"). Transition risks can be divided into policy and legal risks, technical risks, market risks, andreputation risks. Physical risks include acute risks (e.g. extreme weather such as typhoons and floods) and chronic risks (e.g. changes inclimate patterns such as persistent high temperatures). In addressing climate change, we not only prevent risks, but also proactively identifyopportunities, including resource efficiency, energy sources, products and services, market and resilience.
Global warming has led to a steady stream of abnormal weather, and the challenges posed by climate change are of concern to society as awhole. This not only puts forward higher requirements for promoting low-carbon development and building ecological civilization, but also hasa positive effect on promoting the transformation and upgrading of economic structure, energy structure and industrial structure. NOVOSENSEdescribes our efforts and future directions in addressing climate change in terms of governance, strategy and risk management.
Type Climate-related risks
Physical risks
Transition risks
Acute
Chronic
Policiesand laws
Sudden extreme weather events such as rainstorms and typhoons may trigger a series ofrisks such as production suspension and reduction at the supply chain end and difficultiesin product transportation, which may lead to reduced business stability and increasedcosts;Major extreme weather disasters are also very likely to cause employee safety accidents,etc., adding more unfavorable factors.Long-term changes in climate patterns (such as persistent high temperatures) may trigger,for example, increased operating costs due to increased cooling demand in summer, aswell as cost inputs due to subsequent restructuring of energy use.With the improvement and introduction of policies, regulators are bound to adopt morestringent GHG emission limitation measures and strengthen GHG emission disclosurerequirements;With the acceleration of China's carbon emissions trading market and the successiveimprovement of international carbon tariffs and other policies, the subsequent fulfillmentof carbon emissions compliance requirements may lead to an increase in costs;
Green Operation: Co-build a Green Future
Type Climate-related risks
Transition risks
Technology
Market
Reputation
The process of production technology innovation and iteration to meet environmentalrequirements and new product R&D and innovation may lead to an increase in the front-end cost of investing in new technologies or adopting/deploying new operations andprocesses.With the guidance of policies and markets, and the gradual improvement of customers'low-carbon and environmental awareness, customers may turn to greener products, suchas raw materials with sustainability certification, which will affect the procurement of rawmaterials;
Changes in policies may also lead to the early retirement of existing fixed assets such asenergy-consuming equipment;
As a supplier in the new energy vehicle industry chain, changes in customer behavior,such as the implementation of projects related to addressing climate change bycustomers, will also impose relevant requirements on the supply chain.With stakeholders' increasing attention to climate change-related issues, reputationaldamage may result if the company fails to meet stakeholders' expectations or commitsviolations related thereto.
There may be a risk of being held legally liable or facing fines and financial losses due tofailure to comply with relevant climate policies or laws.Policiesand laws
Developmentopportunities
The voice of the whole society for energy conservation and emission reduction is rising day by day, andthe adjustment of energy structure is imperative. Our business structure is mainly applied in the fields ofpan-energy and new energy vehicles. In the future, we will continue to actively promote the developmentof sustainability-related businesses with the goal of assisting energy upgrading and transformation. Wewill continue to seize development opportunities with rich technical expertise, advanced technology andcontinuous cutting-edge research, and endeavor to develop and promote green and low-carbon productsand services, so as to lay a foundation for the company's further growth and contribute to energyconservation and emission reduction of the whole society.
Transition risks
With the implementation of relevant policies such as the national carbon peaking and carbon neutralitygoals, regulatory authorities are becoming increasingly stringent in their carbon emission requirementsfor NOVOSENSE, which may lead to increased operating costs, increased pressure on energyconservation and emission reduction, and increased investment in environmental protection equipmentand facilities. We will actively respond to relevant national policies on carbon emissions.
Global warming may increase our operating costs, including increases in operating costs that may betriggered by, for example, increased demand for cooling in the summer, as well as cost inputs resultingfrom subsequent restructuring of energy use, such as the use of more clean energy.Chronic physicalrisks
We operate in a well-maintained indoor environment and adopt the Fabless business model commonlyused in the integrated circuit design industry. Wafer manufacturing, chip packaging and chip testing areall completed by outsourcing manufacturers, so large-scale production is not involved. We require ourpartner vendors to do a good job in production scheduling and delivery management, take into accountthe possible negative impacts of factors including extreme weather in their scheduling, make flexibleadjustments and provide good customer service.Acute physical
risks
Includes only indirect GHG emissions (Scope 2) from purchased electricity. Indirect GHG emissions were calculated based on the nationalgrid emission factors in the Notice on Reporting and Verification of Greenhouse Gas Emissions from Enterprises in Selected Key Industriesfor 2023-2025 issued by the Ministry of Ecology and Environment of the People's Republic of China.
NOVOSENSE joins hands with AutoNavi to provide its employees with new energy vehicle based business travel services, aimingto reduce Scope 3 carbon emissions. During our partnership in 2023, we have successfully reduced our carbon emissions bya total of 13,313.82 kg. This cooperation not only strengthens the company's investment in sustainable transportation, but alsocontributes to the development of new energy transportation. Together with AutoNavi, NOVOSENSE continues to help create acleaner, low-carbon mobility ecosystem with innovative solutions to promote green mobility.
NOVOSENSE's carbon emission reduction from car use
(January to December 2023)
AutoNavi provides a variety of new energy vehicle based business travel and delivery services, reducing carbon emissionsby 13,313.82 kg together with NOVOSENSEJan. Feb.Mar.Apr. May. Jun.Jul.Aug.Sep.Oct. Nov. Dec.
1,0001,5002,0002,500
Risk Management
Carbon Emission Management
In response to climate change challenges, we focus on identifying and assessing physical risks and transition risks, while seizing developmentopportunities to promote the sustainable development of NOVOSENSE. We strengthen the sustainable management of natural resources,reduce pollutant emissions, improve relevant risk management and target setting systems, and promote high-quality and green development.
In 2023, NOVOSENSE's total GHG emissions were 3,768.66 tons4 of CO2 equivalent. We are also currently planning the use of clean energysuch as PV-ES.At the same time, we are focusing on the management of GHG emissions (Scope 3).
Collaboration with AutoNavi to provide new energy vehicle basedbusiness travel and delivery services for reduced carbon emissionsFeatured event
Green Operation: Co-build a Green Future
Climate Risk Management
Biodiversity
NOVOSENSE is fully aware of the potential risks that climate change may bring to daily operations. It incorporates climate change relatedissues into the supervision scope of the management, regularly monitors climate change related risks, and plans to carry out relevant trainingto enhance the ability to cope with climate change, so as to better resist risks in the face of climate change.In accordance with the Emergency Response Law of the People's Republic of China, the Interim Measures for the Administration ofEmergency Response Plans for Sudden Environmental Events, and other applicable laws and regulations, we have formulated the EmergencyResponse Plan for Sudden Environmental Events, established a full-process management mechanism for emergency response to suddenenvironmental events, improved prevention and disposal capabilities, and minimized the losses caused by environmental pollution andecological damage.We have formed an assessment team to carry out environmental risk assessment and established a series of procedures including on-sitesurvey, research, collection of relevant materials, and internal opinion solicitation to provide a basis for the company to manage environmentalrisks.
Fully recognizing the importance of biodiversity conservation, we take biodiversity conservation into account at the start of any project,conduct environmental impact assessments in accordance with regulatory requirements, and avoid project development within the ecologicalprotection red line, fundamentally reducing the impact of project construction and subsequent operation on biodiversity.
OutlookAs a company close to China local market, NOVOSENSE can keenly perceive and quickly respond to local policies, customer needs, supplychain, talent market, etc. Its capability to respond more flexibly, resiliently and rapidly brings a significant edge. With the acceleration of a newround of scientific and technological revolution and industrial transformation in the world today, opportunities and challenges are intertwined.NOVOSENSE strives to create highly competitive products and services and become a high-quality, innovative and trustworthy world-class chipcompany.In the future, the company will continue to deeply integrate market prospects and customer needs, continue to focus on the three major productdirections of sensor, signal chain, and power management to provide a wealth of semiconductor products and solutions, and continue to deepenits presence in the automotive, industrial, information communications, and consumer electronics fields. With the mission of "Sense and Drive theFuture: Build a Green, Smart and Connected World with Semiconductors", the company is committed to providing chip-level solutions to link thedigital world and the real world.In addition, we will continue to implement the sustainable development approach. While maintaining business growth, we will actively fulfillour corporate social responsibility in terms of environment (E), society (S) and governance (G) to promote the sustainable development of thecompany and society as a whole.
Appendix
National specialized, sophisticated,distinctive and innovative "LittleGiant" enterprise
Appendix
Awards
VDE Premium Quality AwardTop 50 Automotive Chips in 2023
"China Chip" Award for three consecutive years BJX Cup Influential PV Brand Award
Electric Drive Technology Innovation Award Top 10 China IC Design Brands
Analog Semiconductors - Outstanding
Enterprise Award
The Sensor Entrepreneur of the Year Award
2023 SuzhouIntellectual Property(Patent) Award
2023 EE AwardsAsia - AutomotiveElectronics Solutions
Supplier (MostPromising Company)
2023 DomesticAnalog IC Industry
LeadershipExcellence Award
Automotive SmallMotor Driver SoCNSUC1610 - Gasgoo
Awards 2023
Appendix
Report IndexGRI Standards IndexStatement of use
Suzhou Novosense Microelectronics Co., Ltd. has reported the information cited in this GRI content indexwith reference to the GRI Standards for FY2023.GRI 1: Foundation 2021GRI 1 used
GRI Standard GRI Standard Disclosure Disclosure Location Location
GRI 2: GeneralDisclosures 2021
GRI 2: GeneralDisclosures 2021
GRI 3: MaterialTopics 2021
2-1 Organizationaldetails
Company Profile
2-18 Evaluation ofthe performanceof the highestgovernance body
ESG GovernanceAbout This Report2-2 Entities includedin the organization'ssustainabilityreporting
Employees' Rights
and Interests2-19 CompensationpoliciesAbout This Report,back cover2-3 Reporting period,frequency andcontact pointTo be provided
and supplemented2-20 Processto determinecompensationNot involved2-4 Restatements ofinformation
To be provided
and supplemented2-21 Annual totalcompensation ratioNot yet conducted,planned foradoption in thefuture2-5 Externalassurance
To be provided
and supplemented2-22 Statementon sustainabledevelopment strategyCorporate Culture2-6 Activities,value chain andother businessrelationships
To be
provided and
supplemented2-23 PolicycommitmentsOur Employees2-8 Workers who arenot employees
To be
provided and
supplemented2-25 Processes toremediate negativeimpactsComplianceGovernancePlease refer to thecompany's AnnualReport 20232-9 Governancestructure andcomposition
To be provided
and supplemented2-26 Mechanisms forseeking advice andraising concernsComplianceGovernance2-10 Nominationand selection of thehighest governancebody
Compliance
Governance2-27 Compliance withlaws and regulationsPlease refer to thecompany's AnnualReport 20232-11 Chair of thehighest governancebody
The company
has joined
relevant industry
associations2-28 MembershipassociationsComplianceGovernance2-12 Role of thehighest governancebody in overseeingthe management ofimpacts
ESG Governance2-29 Approachto stakeholderengagementComplianceGovernance2-13 Delegation ofresponsibility formanaging impacts
ESG Governance2-30 CollectivebargainingagreementsESG Governance2-14 Role of thehighest governancebody in sustainabilityreporting
ESG Governance3-1 Process todetermine materialtopicsNot involved2-15 Conflicts ofinterest
ESG Governance3-2 List of materialtopicsComplianceGovernanceESG Governance2-16 Communicationof critical concerns
ESG Governance3-3 Management ofmaterial topicsComplianceGovernanceESG Governance2-17 Collectiveknowledge of thehighest governancebody
Our Employees 2-7 Employees
To be
provided and
supplemented2-24 Embeddingpolicy commitments
GRI Standard GRI Standard Disclosure Disclosure Location Location
GRI 202: MarketPresence 2016
GRI 302: Energy2016
GRI 203: IndirectEconomic Impacts2016
GRI 303: Waterand Effluents2018GRI 205: Anti-corruption 2016
GRI 206: Anti-competitiveBehavior 2016
GRI 304:
Biodiversity 2016GRI 207: Tax 2019
GRI 201: EconomicPerformance 2016
GRI 301: Materials
2016201-1 Directeconomic valuegenerated anddistributed
Please refer to thecompany's AnnualReport 2023
301-1 Materials usedby weight or volume
Green OfficeResponse toClimate Change201-2 Financialimplications andother risks andopportunities due toclimate change
To be provided
and supplemented301-2 Recycled inputmaterials usedPlease refer to thecompany's AnnualReport 2023201-3 Defined benefitplan obligations andother retirementplans
Green Office301-3 Reclaimedproducts and theirpackaging materialsPlease refer to thecompany's AnnualReport 2023201-4 Financialassistance receivedfrom government
Green Office302-1 Energyconsumption withinthe organizationTo beprovided andsupplemented202-1 Ratios ofstandard entry levelwage by gendercompared to localminimum wage
Green Office302-2 Energyconsumption outsideof the organization
To beprovided andsupplemented202-2 Proportion ofsenior managementhired from the localcommunity
To be
provided and
supplemented302-3 Energyintensity
Green Office302-4 Reduction ofenergy consumption
Green Office303-1 Interactionswith water as ashared resource
Green Office303-2 Managementof water discharge-related impacts
To be providedand supplemented203-1 Infrastructureinvestments andservices supported
To be
provided and
supplemented302-5 Reductions inenergy requirementsof products andservicesTo be providedand supplemented203-2 Significantindirect economicimpactsGRI 204:
ProcurementPractices 2016
Supply ChainManagement204-1 Procurementpractices
To be providedand supplemented205-1 Operationsassessed for risksrelated to corruption
Green Office303-3 WaterwithdrawalComplianceGovernance205-2Communication andtraining about anti-corruption policiesand procedures
To be provided
and supplemented303-4 WaterdischargeComplianceGovernance205-3 Confirmedincidents ofcorruption andactions taken
Green Office303-5 WaterconsumptionComplianceGovernance206-1 Legal actionsfor anti-competitivebehavior, anti-trust, and monopolypractices
The company
has no relevant
operations304-1 Operationalsites owned,leased, managedin, or adjacent to,protected areasand areas of highbiodiversity valueoutside protectedareasComplianceGovernance207-1 Approach totax
ComplianceGovernance207-2 Taxgovernance, control,and risk management
Not applicable304-2 Significantimpacts ofactivities, products,and services onbiodiversityComplianceGovernance207-3 Stakeholderengagement andmanagement ofconcerns
ComplianceGovernance207-3 Stakeholderengagement andmanagement ofconcerns related totax
The company
has no relevant
operations304-3 Habitatsprotected or restored
To be providedand supplemented207-4 Country-by-country reporting
The company
has no relevant
operations304-4 IUCN Red Listspecies and nationalconservation listspecies with habitatsin areas affected byoperations
Appendix
GRI Standard GRI Standard Disclosure Disclosure Location Location
GRI 306: Waste2020
GRI 404: Trainingand Education2016
GRI 405: Diversityand EqualOpportunity 2016
GRI 308: SupplierEnvironmentalAssessment 2016
GRI 406: Non-discrimination2016GRI 407:
Freedom ofAssociationand CollectiveBargaining 2016GRI 408: ChildLabor 2016
GRI 401:
Employment 2016
GRI 402: Labor/ManagementRelations 2016
GRI 305:
Emissions 2016
GRI 403:
OccupationalHealth and Safety2016
305-1 Direct (Scope
1) GHG emissions
Response toClimate Change
403-1 Occupationalhealth and safetymanagement system
Occupational
Health and SafetyResponse toClimate Change305-2 Energy indirect(Scope 2) GHGemissions
Occupational
Health and Safety403-2 Hazardidentification, riskassessment, andincident investigation
Occupational
Health and Safety403-3 Occupationalhealth servicesResponse toClimate Change305-3 Other indirect(Scope 3) GHGemissions
Response toClimate Change305-4 GHGemissions intensity
Occupational
Health and Safety403-4 Workerparticipation,consultation, andcommunication onoccupational healthand safetyResponse toClimate Change305-5 Reduction ofGHG emissions
Occupational
Health and Safety403-6 Promotion ofworker health
Occupational
Health and Safety403-5 Worker trainingon occupationalhealth and safetyGreen Office305-6 Emissionsof ozone-depletingsubstances (ODS)
Occupational
Health and Safety403-7 Preventionand mitigationof occupationalhealth and safetyimpacts directlylinked by businessrelationships
Occupational Health
and Safety403-9 Work-relatedinjuries
Occupational
Health and Safety403-10 Work-relatedill health
Green Office306-1 Wastegeneration andsignificant waste-related impacts
Green Office305-7 Nitrogenoxides (NOx), sulfuroxides (SOx), andother significant airemissions
OccupationalHealth and Safety403-8 Workerscovered by anoccupationalhealth and safetymanagement system
Green Office306-2 Managementof significant waste-related impacts
Green Office306-3 Wastegenerated
Green Office306-4 Waste divertedfrom disposal
Training and CareerDevelopment404-2 Programs forupgrading employeeskills and transitionassistance programs
Training and CareerDevelopment404-1 Average hoursof training per yearper employee
Green Office306-5 Waste directedto disposal
Training and CareerDevelopment404-3 Percentage ofemployees receivingregular performanceand careerdevelopment reviews
Supply Chain
Management308-1 New suppliersthat were screenedusing environmentalcriteria
Supply Chain
Management308-2 Negativeenvironmentalimpacts in the supplychain and actionstaken
ComplianceGovernanceOur Employees405-1 Diversity ofgovernance bodiesand employees
Our Employees401-1 New employeehires and employeeturnover
Employees' Rights
and Interests401-2 Benefitsprovided to full-time employees thatare not provided totemporary or part-time employees
To be provided andsupplemented405-2 Ratio ofbasic salary andcompensation ofwomen to men
Employees' Rights
and Interests401-3 Parental leave
No relevantoperationsEmployees' Rightsand Interests407-1 Operationsand suppliers inwhich the rightto freedom ofassociation andcollective bargainingmay be at risk
Employees' Rightsand Interests406-1 Incidents ofdiscrimination andcorrective actionstaken
To be provided
and supplemented402-1 Minimumnotice periodsregarding operationalchanges
No relevantoperationsEmployees' Rightsand Interests408-1 Operationsand suppliers atsignificant risk forincidents of childlabor
GRI Standard GRI Standard Disclosure Disclosure Location Location
GRI 411: Rightsof IndigenousPeoples 2016
GRI 414:
Supplier SocialAssessment 2016
GRI 413: LocalCommunities2016
GRI 417:
Marketing andLabeling 2016
GRI 416:
Customer Healthand Safety 2016
GRI 418:
Customer Privacy2016
GRI 409: Forced orCompulsory Labor2016GRI 410: SecurityPractices 2016
409-1 Operationsand suppliers atsignificant risk forincidents of forced orcompulsory labor
No relevantoperationsEmployees' Rightsand InterestsTo be providedand supplemented410-1 Securitypersonnel trained inhuman rights policiesor procedures
None411-1 Incidents ofviolations involvingrights of indigenouspeoples
Engagement in
Charity Activities413-1 Operationswith local communityengagement, impactassessments,and developmentprograms
None413-2 Operationswith significantactual and potentialnegative impacts onlocal communities
Supply Chain
Management414-1 New suppliersthat were screenedusing social criteria
Supply Chain
Management414-2 Negativesocial impacts in thesupply chain andactions taken
GRI 415: PublicPolicy 2016
None415-1 Politicalcontributions
Quality
Management417-1 Requirementsfor product andservice informationand labeling
Quality
Management416-1 Assessmentof the health andsafety impacts ofproduct and servicecategories
Quality
Management416-2 Incidents ofnon-complianceconcerning the healthand safety impactsof products andservices
None417-2 Incidents ofnon-complianceconcerning productand serviceinformation andlabeling
None417-3 Incidents ofnon-complianceconcerning marketingcommunications
Compliance
Governance418-1 Substantiatedcomplaintsconcerning breachesof customer privacyand losses ofcustomer data
Appendix
Email: pr@novosns.comAddress: C1-501, No.88 Jinji Lake Avenue, Suzhou Industrial Park, Jiangsu Province, China
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