圣邦股份(300661):2024 ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE REPORT
SG Micro Corp 2024 CCONTENTSONTENTS 02 Green R&D 06 Enhance Governance 13 CompCompananyy About SGMICRO GrGreen Comeeen Comes s SciencSciencee-Based -Based MeMesssage frsage from the Chairmanom the Chairman 01 Structure OvOvervieervieww FirFirstst GoGovvernancernancee Social Responsibility 03 Environmental 07 Performance Highlights Management Business Ethics 15 03 09 16 Awards and Recognition Energy Conservation Internal Control and and Carbon Footprint Risk Management 04 Corporate Culture Reduction Information Security 17 Waste and Material 10 and Protection Management Refine Sustainable 19 Corporate Governance Research, Development 23 Build a Sustainable 31 Recruitment 35 About this ReportInnoInnovvaation tion RReesponsible sponsible TTogether ogether AppendixAppendix 47and Innovation Supply Chain and R&Dand R&D PrProcurocuremenementt WWe Thrive Thrivee Salary and 37 Key Performance 48 27 33 Strict Quality Control Conflict Minerals Compensation IndicatorsManagement Intellectual Property 29 38 Employee Benefits GRI Index 50 Rights 39 Talent Development Glossary 51 Employee Care 42 Feedback Form 51 Health and Safety 43 Social Responsibility Performance Highlights Environmental 12,630.1612,630.16 7,893,380.477,893,380.47 4,248.184,248.18 Performance Water consumption (m3) Power consumption (kWh) Greenhouse gas emissions (Scope 1-2, tCO e) 2 Social 100 58 1,598 Performance Number of employees Employee training coverage rate (%) Average learning hours R&D 370 162 0.87 Performance Patents obtained Newly applied patents Investment on R&D (RMB Billion) Awards and Recognition World Electronics Achievement China Analog IC Automotive Top 10 China IC Brands Industry Excellence Award Awards "Product of the Year"Environmental Management SGMICRO strictly adheres to environmental protection laws and regulations of the People's Republic of China, including SGMICRO pledges: the Environmental Protection Law, Water Pollution Prevention and Control Law, Air Pollution Prevention and Control Law, Prevention and Control of Environmental Pollution by Solid Wastes Law, and Environmental Noise Pollution Prevention Using 2025 as the base year, and Control Law. Upholding a green development philosophy, we actively support China's "carbon neutrality and peak carbon emissions" goals and diligently fulfill our social responsibility for energy conservation and emission reduction. In 2024, SGMICRO identified "mitigating climate change and promoting sustainable development" as the core initiative of our environmental responsibility. We have since made a formal climate action commitment, established a scientific greenhouse gas accounting system based on the ISO 14064 standard, and set mid- and long-term carbon reduction we are committed to reducing carbon emissions targets. Carbon emission reduction performance is regularly tracked and assessed.of per million sales in scope I+II in owned facilities 50% by 50% by 2030. and to reduce carbon emissions of per million sales in scope I+II in owned facilities by 90% by 90% 2050. Using 2023 as the base year,
SGMICRO is guided by the principles of authenticity, compliance, resilience, and sustainability, with authentic data and legally compliant operations. We crack down on Whistleblowing and commercial bribery and oppose unfair competition. We comply with all relevant laws and regulations to maintain a fair, equitable, and competitively open commercial environment. Our products and services of superior quality combined with an excellent reputation enable SGMICRO to continue securing new business opportunities. Protection Mechanism SGMICRO consistently clarifies requirements for Integrity and Honesty standardized operations, anti-corruption, and fair trade, creating an internal environment of strong business ethics. We rigorously implement integrity In accordance with strict integrity guidelines, we have developed policies such as the Integrity and Anti-Corruption Management Standards, and are committed to and compliance management into all business strict compliance with applicable anti-bribery and anti-corruption laws and regulations. We prohibit any form of bribery, corruption, embezzlement, extortion, activities. Employees and partners who discover any misappropriation of funds, or any related conduct to ensure the smooth operation of the company. All employees are required to refrain from promising, offering, illegal or non-compliant behavior with the company's giving, granting, or accepting any improper and illicit benefits.business ethical standards can promptly lodge the Personal Information Protection Law. Considering our industry and the specific characteristics of our Awareness and Training Security Policy Updates Network Isolation and Monitoring01 02 03 company, we have established an information security management committee and working group, using the We maintain strict segregation between our office We regularly send out reminders to help employees We continually revise and refine our security policies ISO 27001 Information Security Management System as and R&D networks, with VPN access and robust prevent phishing attacks, enhancing their to align with evolving business needs and the policy benchmark. Our goal is to establish an controls and auditing for all data transmissions. cybersecurity awareness and response capabilities. technological advancements.information security management system for carrying out information security protection and improving our We conduct real-time monitoring of our networks We provide cybersecurity awareness training for all We revise our cybersecurity policies and procedures networks security defense system. In 2024, the company and systems to enable automated alerts. This ensures employees through online lectures and video tutorials. to ensure continuous alignment with the latest conducted a gap analysis and applicability assessment that any faults or anomalies are promptly detected, Additionally, our IT team receives specialized security cybersecurity standards and regulations.of existing policies in alignment with the latest legal allowing us to take immediate preventative measures. training and regular updates. regulations and industry best practices. We updated the Information Security Emergency Response and Business Continuity Plan to effectively prevent, promptly control, and minimize the impact of emergencies, ensuring Emergency Response Drills and business continuity. Endpoint and Security Management Supervision and Audit 04 05 06 Vulnerability Scanning The company continues to strengthen its network security capabilities and develop innovative security We implement access controls for external and mobile We regularly conduct cybersecurity emergency drills We conduct regular audits of data management prac- solutions to achieve all-round and three-dimensional storage devices, restrictions on outbound email, to validate the feasibility and effectiveness of incident tices across all departments to ensure data compli- protection from hardware facilities to software application control, and comprehensive software response plans, enhancing our IT team's ability to ance and security. applications, from defense against external threats to compliance management. react and collaborate during incidents. Additionally, We engage third-party auditors to verify the effective- SGMICRO attaches great importance to communication with various stakeholders, and carries out the identification, evaluation and analysis of substantive issues through various channels such as shareholders' meetings, customer satisfaction surveys, employee and management symposiums, websites and WeChat accounts. We strive to continuously improve our sustainable development performance.ESG Management System Stakeholders Recognition Expectation and Demands Communication and ResponsesSGMICRO believes that sound ESG management is the foundation of high-quality sustainable Financial performance Shareholders' meeting development. Internally, we have established an ESG management system led by our Board of Directors, R&D and innovation Disclosure of information Investors Investor relations management with cooperation from various relevant departments. Investor communication Board structure and governance Risk and internal control management ESG Management Structure Product responsibility management Official correspondence Government/ Community charity Supervision & inspection regulators Environmental management Disclosure of information Occupational health and safety Board Office Product responsibility management R&D and innovation Customer service Leads the ESG management system in coordination with Risk and internal control management Technical seminar Customers various departments. Industrial exchange and cooperation Customer satisfaction survey Information security and privacy protection Business ethics Various Departments A democratic communication platform Employee health and safety Employee assembly Departments such as Human Resources, Operations, Protection of employee rights and interests Employee Employee training Employee training and development Quality, Internal Control, and Information Technology are ESG Employee activities responsible for implementing specific ESG initiatives. Suppliers/ Supply chain management Suppliers screening and reviewService Providers Mutual benefit and progress Suppliers exchange and trainingCooperative Organizations ESG Work Group R&D and innovation Industry forum (i.e. NGOs, Scientific Industry win-win relationships Industry-university-research cooperationCoordinates ESG management, communication, and Analysis of Substantive Topics Based on the expectations of internal and external stakeholders, as well as factors relating to business scope and sustainable development, we carry out identification, evaluation and analysis of substantive topics to determine issues pertinent to the company and our stakeholders.Substantive Topics of ESG Environmental Topics Social Topics Topics of Corporate GovernanceGreen R&D Product quality control Corporate governance Tackling climate change Product R&D and innovation Board compositionEnergy conservation and Intellectual property rights Board of supervisors performancecarbon footprint reduction Quality of customer service Disclosure of information Water resource utilization Sustainable supply chain Investor relations management and management Employee benefits Business ethics Green operation Talent development Compliance control Health and safety Internal control and risk management Salary and compensation Information security and data Industry-university research Research, Development and Innovation Research and development (R&D) and innovation form the cornerstone of our company's sustained growth. We view To manage the R&D projects efficiently, we are continuingly enhancing our R&D management system. This includes product R&D capabilities as our most critical core competency and have established a comprehensive R&D further enhancing sub-project management, document administration, and cost control efficiency through the management system and processes. Since our inception, we have consistently pursued an independent innovation optimization and upgrade of our specialized R&D management software. Through persistent independent innovation, driven technical development strategy. With technical innovation at our core, we continuously increase R&D investment, increased investment, continuous accumulation of core technologies, and timely adjustment of market strategies aligned accumulating numerous critical core technologies. Concurrently, based on market trends, customer demands, and with customer demands, we offer competitive analog IC products and solutions to global markets. We aim to predictions of future technological shifts, we proactively conduct technological research and product planning. This consistently expand our portfolio of new technologies and products to empower the company's long-term allows us to anticipate changes in end-user demand, strategically position ourselves for growth opportunities, and competitiveness. promptly deliver internationally competitive products to our target markets. While ensuring the full application of existing product technologies, we actively pursue next-generation innovations.Investment on R&D We have consistently invested a substantial portion of our revenue in research and development, progressively increasing our commitment. The ongoing R&D investment has resulted in the rapid expansion of our technical team and significantly bolstered our technological capabilities. We take pride in independently developing a wide range of core technologies. Leveraging these cutting-edge technologies, SGMICRO offers a comprehensive product portfolio that caters to diverse market requirements. We provide specialized solutions for specific segments.In fiscal year 2024, our R&D investment totaled 871 million RMB, representing a 26.02% share of total revenue for the period. This marks an 18.14% increase in R&D investment compared to the previous year. This significant investment has yielded strong results, as evidenced by our expanded portfolio of over 5,900 products. This demonstrates the effectiveness of our R&D efforts in broadening our product matrix. Investment in R&D (in 10,000 RMB) Historical Sales-Ready Product Number2024 87,074.68 5,900 2024 2023 73,707.41 2023 5,200 2022 62,582.80 2022 4,300 Careers SGMICRO adheres to a “people-oriented” core philosophy and considers our core talent the key driver behind During the reporting period, we offered a significant number of professional technical positions to university our innovation breakthroughs and sustainable development. By continuously optimizing the Recruitment students, attracting and cultivating top talent through various campus activities and training programs. Management Policy and building a diversified matrix of recruitment channels, the company integrates both Concurrently, we further enhanced our employer branding by bringing in experienced technical and management campus and social recruitment mechanisms to ensure openness and diversity in talent acquisition. This approach personnel through external hiring initiatives. attracts individuals with varied experiences and backgrounds, fostering innovation and growth. During the selection process, SGMICRO strictly adheres to the principles of fairness, impartiality, and transparency to identify Number of Total Employees top talent, build a strong talent pipeline, and enhance talent reserves, thereby laying a solid foundation for steady SGMICRO values the input of all employees and encourages honest and effective communication as part of SGMICRO upholds the core principle of "respecting every employee's voice" by establishing a robust our corporate structure and culture. To foster an open and inclusive workplace, the company has grievance management system and a timely response mechanism. Based on the fundamentals of being implemented communication management procedures to welcome diverse suggestions and criticisms "objective, fair, and just", the company offers multiple feedback channels: reporting to direct supervisors or while ensuring prompt and appropriate responses. Employees are encouraged to communicate feedback, department heads; submitting complaints via the company's internal dedicated email; use of suggestion suggestions, and personal grievances to managers at all levels, who shall actively respond and take boxes; and directly contacting Human Resources department or the management. responsibility to address them. The company strictly enforces confidentiality throughout the grievance process to protect employee Parts of 2024 Training Programs Employee Training and Development Employee growth powers our company's sustainable development. We've built a robust training system, Professional Development Program continuously fostering a "learning organization" to actively support and empower employees' career advancement. By creating comprehensive talent development plans, we aim for a virtuous cycle of SGMICRO continues to enhance both team-wide and individual technical capabilities by offering diverse and sys-SGMICRO focuses on providing employees with up-to-date technical knowledge and industry trends to Industry- University- Research Cooperation promote growth through new product research and development. To achieve this, we offer internal training to improve R&D skills for new employees, ensuring we remain technologically advanced. Furthermore, we work with external partners to offer courses in quality management, organizational management, and Our company is dedicated to fostering deep industry-university collaboration and nurturing talent in the Purpose Basis for Compilation This report (the "Report") is the annual 2024 Environmental, Social, and Corporate Global Reporting Initiative's GRI Standards Governance (ESG) Report released by SG Micro Corp and our subsidiaries (referred to as The Chinese National Standard Guidelines for the Preparation of Social Responsibility Reports "SGMICRO" or "the company", "company", "we" or "us"). The purpose of the report is to (GB/T 36001-2015) facilitate a transparent dialogue between SGMICRO and our stakeholders regarding our The Chinese Academy of Social Sciences China Corporate Sustainable Development Reportenvironmental, social, and governance practices and to address their expectations with a comprehensive and structured approach. Guide (CASS-ESG 6.0) SZSE Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange— Sustainability Report (For Trial Implementation) Scope 2030 UN Sustainable Development Goals (SDGs) ISO 26000?2010 Guidance on Social Responsibility The disclosure scope of this report is consistent with that of the financial information in the company's 2024 annual report, and some information may involve policies and practices from previous years. Compilation Process Data This report is based on our company's ESG practices, following a process of "project setting and research, information collection, drafting and revision, executive review, board review, and public release". At some stages, we engage with relevant stakeholders to discuss and The report quotes data from various sources, including the company's operation validate the report's framework and content, ensuring transparency and alignment with our information, publicly available government documents, annual financial reports, internal corporate values. statistical reports, among others. Financial data in this report is presented in Chinese currency RMB. In cases where discrepancies arise between this report and the financial statements, the financial statements shall take precedence. Versions and Availability The report can be accessed and downloaded from the official website of SGMICRO Reliability Guarantee (www.sg-micro.com), the Shenzhen Stock Exchange website (www.szse.cn), and the CNINFO website (www.cninfo.com.cn). The Report is available in both Chinese and English.
Female directors person 3 Number of total employees person 1,598 Governance Independent directors person 2 Male staff person 1,053 person Non-independent directors 3 Female staff person 545 person Over 40 yrs old 336 Social Performance 30 to 40 yrs old person 524 Under 30 yrs old person 738 Sector Disclosure Item Unit 2024 Master's degrees and above person 783 Safety Number of people with work-related injuries person 0 Bachelor’s degree person 652 The number of suppliers identified as having actual or Number 0 potential significant negative social impacts Employee College degree or under person 163 The number of suppliers identified as having actual or Production person 80 Number 0 potential significant negative environmental impacts 1,208 Technicians person The percentage of new suppliers that were screened based % 100 on environmental criteria Sales person 220 Supply The percentage of new suppliers that were screened based % 100 Finance person 19 Chain on social criteria % 100 The percentage of RMI certified supplier person 71 Administration Key Performance 303-3 Water consumption Indicators Waste and Material GRI Standards Disclosure Item Corresponding Chapter 306-1 Waste generation and significant waste-related impacts Management Waste and Material 2-1 Detailed information about the organization About this Report Management of significant waste-related impacts GRI 306: Waste 2020 306-2 Management Waste and Material 2-3 Reporting period, frequency and contact point About this Report306-3 Waste generated Management 2-7 Employee Together We Thrive GRI 308: Supplier Environmental New suppliers that were screened against environmental Build a Sustainable 308-1 Assessment 2016 criteria Supply Chain Enhance Governance 2-9 Governance framework and composition Structure 401-1 The percentage of new employee hires and employee turnover /GRI 401: Employment 2016 GRI 2: General In terms of governance impact, the supervisory Enhance Governance Benefits provided to full-time employees Employee Care 2-12 401-2 Disclosure 2021 role of the highest governance body Structure (excluding temporary or part-time employees) 403-1 Occupational health and safety management system (OHSMS) Health and SafetyThe highest governance body’s role in Refine Sustainable 2-14 sustainability reporting Corporate Governance Occupational health services Health and Safety 403-3 Refine Sustainable Occupational health and safety topics: worker participation, 2-22 Statement on sustainable development strategy Health and Safety Corporate Governance 403-4 consultation, and communication GRI 403: Occupational Refine Sustainable 403-5 Worker training on occupational health safety Health and Safety2-29 Approach to stakeholder engagement Health and Safety 2018 Corporate Governance 403-6 Promote worker health Health and Safety Refine Sustainable 3-1 The process of determine substantive issues Prevention and mitigation of occupational health and safety Corporate Governance 403-7 Health and Safety impacts directly linked by business relationships GRI 3: Substantive Refine Sustainable 403-10 Work-related health Health and Safety 3-2 List of substantive issues Corporate Governance Topics of ESG 2021 404-1 Talent Development Average hours of training per year per employee GRI 404: Training and Refine Sustainable 3-3 Management of substantive issues Education 2016 Programs for upgrading employee skills and transition Corporate Governance 404-2 Talent Development Glossary Feedback Form This report is the 2024 annual Environmental, Social, and Corporate Governance (ESG) Report of SGMICRO publicly released to society. In order to improve the company's ESG management and enhance our Technical Terms Definitions performance in fulfilling ESG responsibilities, we sincerely ask for your opinions and suggestions. Please fill in the feedback form and choose one of the following methods to send:Low Dropout Regulator (LDO) is a type of integrated circuit voltage regulator LDO characterized by its ability to provide a stable output voltage with minimal 1. What is your overall view of the ESG report? power loss. □ Very good □ Good □ Average □ Poor □ Very poorMOSFET, short for Metal-Oxide-Semiconductor Field-Effect Transistor, is a 2. Do you think the report can comprehensively and accurately reflect the company's significant economic, MOSFET type of transistor widely used in integrated circuits. It plays a crucial role in social, and environmental impacts? switching and amplifying electronic signals in various applications.□ Very good □ Good □ Average □ Poor □ Very poorA DC/DC converter is a converter that transforms a direct current power source DC/DC 3. How do you rate the quality of this report in terms of responding to and disclosing issues of concern to into another direct current power source with a different voltage or current.stakeholders? □ Very good □ Good □ Average □ Poor □ Very poorActive Matrix Organic Light Emitting Diode (AMOLED) is a type of organic AMOLED electroluminescent device. 4. What do you think of the clarity, accuracy, and integrity of the information, data, and indicators disclosed in the report? Light Emitting Diode, is a solid-state semiconductor device with diode LED □ Very good □ Good □ Average □ Poor □ Very poorcharacteristics that can convert electrical energy into light energy.5. How would you rate the readability of this report, including its logical structure, content design, language, and formatting? SVHC Substances of Very High Concern □ Very good □ Good □ Average □ Poor □ Very poorThe restriction of the use of certain hazardous substances in electrical and RoHS electronic equipment Open-ended Questions REACH Registration, Evaluation, Authorisation and Restriction of ChemicalsWhat aspect of this report are you most satisfied with? LBMA London Bullion Market Association SG Micro Corp Address: F11, Building D No. 87, North Third Ring Road, Haidian District 中财网
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