歌尔股份(002241)_公司公告_歌尔股份:2022年社会责任报告(英文版)

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歌尔股份:2022年社会责任报告(英文版)下载公告
公告日期:2023-06-09

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Goertek Inc.

2022 Corporate Social Responsibility Report

Stock Abbreviation: GoertekStock Code: 002241

April 2023

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About This ReportThis is the 13th Corporate Social Responsibility Report released by Goertek Inc. (hereinafterreferred to as "Goertek", "the Company" or "we"), covering the period from January 1, 2022 toDecember 31, 2022. Data cited in this report came from Annual Report 2022, as well as officialdocuments and statistical reports of Goertek.This report has been prepared in accordance with the Guidelines for Social Responsibility ofListed Companies on the Shenzhen Stock Exchange, and the Self-regulatory Guidelines forListed Companies on Shenzhen Stock Exchange No.1 - Standardized Operation of CompaniesListed on the Main Board, with reference to the ISO 26000: Guidance on Social Responsibility,the Guidelines for Preparing Corporate Social Responsibility Reports for Chinese Enterprisesfrom the Chinese Academy of Social Sciences, and the T/CESA 16003-2017 standard from theChina Electronics Standardization Association, in combination with GRI Standards for GlobalSustainability Reporting and UN SDGs, focusing on CSR strategy, corporate governance, andperformance improvement.This report has been released electronically. To view the report online or obtain an electronicversion, please visit the website of Goertek Inc. at http://www.goertek.com, or search on thecninfo website at http://www.cninfo.com.cn for downloading.FeedbackFor any suggestions or doubts about this report, you can provide the feedback by contacting us,and we appreciate your valuable feedback.Address: No.268 Dongfang Road, High-tech Industrial Development District, WeifangTel: 0536-3055688Email: goertekcsr.list@goertek.com ir@goertek.com

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Contents

1. Company Profile ................................................................................................................ 1

1.1 Company Information .................................................................................................. 1

1.2 Main Products .............................................................................................................. 2

1.3 Honors ......................................................................................................................... 3

1.4 Responses to the UN Sustainable Development Initiative ........................................... 3

2. Corporate Governance ...................................................................................................... 4

2.1 Board Governance ....................................................................................................... 5

2.2 Shareholders' Rights and Responsibilities ................................................................... 5

2.3 CSR Management Committee ..................................................................................... 5

2.4 Integrity in Business .................................................................................................... 6

2.4.1 Fair Competition .................................................................................................. 7

2.4.2 Anti-Corruption ................................................................................................... 8

2.4.3 Information Disclosure ........................................................................................ 8

2.5 Internal Risk Management ........................................................................................... 8

2.6 Collaboration with Stakeholders ................................................................................ 10

2.6.1 Stakeholder Communication Mechanism .......................................................... 10

2.6.2 Association Membership ................................................................................... 11

2.7 Brand Building and Negative Impact Handling ......................................................... 11

3. Products and Services ...................................................................................................... 12

3.1 Product Quality and Safety ........................................................................................ 12

3.2 Technological Innovation........................................................................................... 13

3.2.1 R&D Investment ................................................................................................ 13

3.2.2 Intellectual Property Protection ......................................................................... 15

3.3 Client Privacy Protection ........................................................................................... 16

3.4 Client Satisfaction ...................................................................................................... 16

4 Value Chain ...... 16

4.1 Supplier Selection and Evaluation ............................................................................. 16

4.1.1 Supplier Code of Conduct .................................................................................. 16

4.1.2 Supplier Selection .............................................................................................. 16

4.2 Supply Chain Cooperation Mechanism and Sustainable Development Management ... ...... 17

4.2.1 Daily Supplier Management .............................................................................. 17

4.2.2 Conflict Minerals Management ......................................................................... 17

5 Green Development ...... 18

5.1 Environmental Protection .......................................................................................... 18

5.1.1 Environmental Management System ................................................................. 18

5.1.2 Pollution Prevention and Control and Circular Economy .................................. 19

IV5.2 Resource Conservation .............................................................................................. 22

5.2.1 Green Design ..................................................................................................... 22

5.2.2 Energy Conservation .......................................................................................... 23

5.2.3 Water Resource Conservation ............................................................................ 24

6. Employee Care ................................................................................................................. 25

6.1 Protection of Employees' Rights and Interests ........................................................... 25

6.1.1 Equal Employment ............................................................................................ 25

6.1.2 Signing Rate of Labor Contracts ........................................................................ 26

6.1.3 Anti-Forced Labor, Harassment and Abuse ....................................................... 26

6.1.4 Prohibition of Child Labor ................................................................................. 26

6.1.5 Employee Privacy Management ........................................................................ 26

6.1.6 Diversity and Equal Opportunity ....................................................................... 26

6.2 Remuneration, Benefits and Welfare Protection ........................................................ 27

6.2.1 Salary Management ........................................................................................... 27

6.2.2 Benefits Management ........................................................................................ 27

6.3 Employee Development and Communication ........................................................... 29

6.3.1 Employee Training System ................................................................................ 29

6.3.2 Annual Training Performance ............................................................................ 32

6.3.3 Pathway for Career Development ...................................................................... 33

6.3.4 Life-Work Balance ............................................................................................. 34

6.3.5 Assistance to Employees in Need ...................................................................... 35

6.3.6 Employee Satisfaction ....................................................................................... 35

6.3.7 Complaint Handling ........................................................................................... 36

6.3.8 Employee Turnover Rate ................................................................................... 36

6.4 Occupational Health and Safety................................................................................. 36

6.4.1 Occupational Health Management ..................................................................... 36

6.4.2 Working Environment and Condition Guarantee ............................................... 37

6.4.3 Assistance for Employees' Mental Health ......................................................... 38

6.4.4 Occupational Safety Guarantee.......................................................................... 38

6.5 Hazard Source Management ...................................................................................... 40

7. Public Service Activities .................................................................................................. 41

7.1 Volunteer Activities .................................................................................................... 41

7.2 Branded Public Service Projects ................................................................................ 41

8. Future Prospects .............................................................................................................. 43

Appendix: GRI Sustainability Reporting Standards Index Table ...... 44

1. Company Profile

1.1 Company Information

Founded in 2001, Goertek Inc. was listed on the Shenzhen Stock Exchange in 2008 with thestock code SZ: 002241. Goertek Inc. engages in the manufacture of computer, communicationand other electronic equipment, and its products include precision components, smart acousticdevices and smart hardware. The Company operates mainly in consumer electronics, automotiveelectronics and other industries, with the main products including acoustics, optics,microelectronics, structural components and other precision components, as well as smarthardware products such as virtual reality (VR)/augmented reality (AR) products, TWS smartearphones, smart wearable devices, gaming console and accessories, and smart home products.The Company serves the leading global customers in the technology and consumer electronicsindustry by providing them with vertically integrated product solutions of precision componentsand smart hardware, as well as the related design, R&D and manufacturing services.

MissionA better life enriched by technology

VisionTo be a great company

Core valuesClient-orientation, employee development, trustworthy and pragmatic, cooperation and mutual

benefitsManagement philosophyCultivation and ingenuity, constant improvement, create core competence of leading reform.

Cultural sloganWe make, we share, we thrive.Our mission is the overarching orientation of the Company's value of existence, ultimate goaland social responsibility. A better life that integrates health and beauty is the ultimate pursuit ofmankind. It also serves as the ultimate goal of the Company that is committed to creating valuefor society with the application of technology. It has been our mission to develop cutting-edgemodern technology, and to integrate humanistic spirit into product design, so as to create artisticproducts that lead future lifestyles, convey the concept of a better life, and satisfy people's pursuitof a better life.Our vision is a general overview of the Company's prospect and development, as well as a long-term goal to be continuously pursued and a realm to be achieved in its future development. Ourvision of "To be a great company" is not only an inheritance of the excellent cultural value ofthe past, but also an inherent demand and expectation for future development. With continuousendeavors in innovation, products, services and brand, the Company aims to become a world-class high-tech company, thus creating maximum value for clients, employees, partners andsociety, and earning their respect.Our core values are the basic value orientation followed by the Company, and also the coreprinciple and value judgment standard for guiding employees' behaviors. The consensus has been

reached on the core values of "client-orientation, employee development, trustworthy andpragmatic, cooperation and mutual benefits" through extensive discussions. The core values arethe beliefs to be revered, the purposes to be pursued and the judgment standard to be relied upon,which shall be continuously strengthened in the whole process of production and operation, thusenabling all employees to consciously bear values in mind and put them into actions.Our business philosophy is a philosophical reflection on the Company's business policy, businessstrategy and management style. The Company is committed to the relentless pursuit of highquality and ambitious goals, and dedicated to innovating product technology and manufacturingtechniques, thus creating excellence with continuous improvement. Meanwhile, we activelyembrace transformation, and efficiently keep accumulating the knowledge, skills, tools, methodsand resource integration ability required for transformation, so as to lead the sustainabledevelopment of the Company with transformation and shape our core competitiveness of"leading power of transformation"."We make, we share, we thrive" is the cultural slogan of Goertek. The Company advocates thecultural concept of "being together". Based on the common pursuit, the Company forms acommunity of shared cause, interests and destiny together with clients, employees, suppliers,and society, so as to create products for a better life together, share the achievements and honorstogether, and grow in the process of value creation together.Culture serves as the cornerstone of corporate survival and development, and an essential partof the core competitiveness of the Company. In 2022, we accelerated the improvement ofmanagement and continued to enhance the company's cultural identity and employees'experience through cultural concept upgrading and internal control projects to deepenimplementation and lay a more solid foundation for corporate development.We released the Goertek Cadre Standard 2.0 to further unify the standard and consensus of cadres.We carried out extensive cultural activities such as sound voices of employees, skill competitionsand health seasons to continuously inspire employees' creativity and vitality. We emphasizedthat "Quality is the lifeblood of the Company and initiative is the source of development" andunswervingly inherited and carried forward our quality culture. Moreover, we practiced clientorientation, with strengthened resource integration, and carried out organizational restructuringbased on clients' strategic transformation projects, so as to closely integrate culture building withbusiness to enhance the overall management level of the Company. Meanwhile, we reinforcedthe incentive role of honors, and upgraded the company-level honors system and refined ourtalent concept, so as to enhance employees' sense of achievement and effectively guarantee theconstruction of our corporate culture.

1.2 Main Products

The Company's main business divides into three segments including precision componentsbusiness, smart audio device business and smart hardware business. The precision componentsbusiness focuses on acoustics, optics, microelectronics, structural components, and otherprecision components. The related products include micro speaker/receiver, speaker module,haptic component (actuator), wireless charging device, antenna, MEMS microphone, MEMSsensors, microsystem module, VR optical component and module, AR optical component, ARlight engine, precision structural parts and etc. The above-mentioned products are widely appliedin devices such as smartphones, tablets, smart wireless earphones, VR, AR, smart wearable andsmart home devices. Smart audio device business focuses on providing products related to audio,

voice interaction, AI, and other technologies. The main products include smart wirelessearphones (TWS), wired/wireless earphones, smart speakers, etc. Smart hardware businessfocuses on providing products related to entertainment, health and home security. The mainproducts include VR, AR, smart wearable products, gaming consoles and accessories, smarthome products, etc.

1.3 Honors

DateTitle of HonorAwarding Institution

February 2022

February 2022Unveiled pilot factory of 2021 smart manufacturingMinistry of Industry and Information Technology, PRC
Global 500 2022Brand Finance
Tech 100 2022Brand Finance

May 2022

May 2022First Prize of the Fourth Shandong Province Patent AwardShandong Provincial People's Government

August 2022

August 2022China's Top 500 Brand Value in 2022 - No.74Brand Finance

December 2022

December 2022National-level Manufacturing Single-Champion ProductMinistry of Industry and Information Technology, and China Federation of Industrial Economics
Top Prize of 2022 Shandong Province Science and Technology Awards - Jiang BinShandong Provincial People's Government
Youth Award of 2022 Shandong Province Science and Technology Awards - Rao YiShandong Provincial People's Government

1.4 Responses to the UN Sustainable Development Initiative

SDGsAction plan
? On June 25, 2022, the Company held a ceremony for donation of RMB 200,000 to establish the Weifang Charity Federation Goertek Charity Fund, dedicated to supporting local children in need. ? Each year, the items of "Charity Donation" are delivered to over 100 impoverished people during our volunteers' visits.
? Our Vietnamese subsidiary voluntarily undertook the "Spring Seedling Campaign" organized by the Vietnamese Embassy, and trained 60 Chinese and Vietnamese volunteers to complete the site construction, supplies preparation and vaccination of 4,500 compatriots.
? Tekin Goertek Excellent Engineer Class was selected by the Ministry of Education as one of the collaborative education projects for university-industry cooperation, pioneering a new model of talent training in universities. ? Goertek Craftsman Training Center continues to cultivate talents for craftsman classes. In 2022, 595 persons completed training, 78% of whom joined the Company, and 661 new front-line managers completed training.
? In 2022, water intake of each park in Weifang of the Company is approximately 4,585,000 tons, of which the living area of the Photoelectric Park II was equipped with a water reuse system, with an annual water recycling volume of 96,300 tons, used for cleaning and greening in the park.
SDGsAction plan
? The installed capacity of our solar power plants in Weifang and Rongcheng reached 49.3 MW, with a total power generation capacity of 43,651.49 MWh, reducing greenhouse gas emissions by 38,601.01tCO2e.
? The Company has established corresponding management rules and regulations to eliminate all discrimination against race, color, age, gender, sexual orientation, disability, pregnancy, religious belief, political affiliation, geography, association membership or marital status, and other factors in the recruitment, employment, training, promotion, compensation and benefits. ? The Company enters into labor contracts with its employees on the basis of equality, voluntariness, consensus, honesty and credibility in accordance with laws, and fully fulfills its labor contract obligations. It has launched a comprehensive electronic labor contract signing system to improve employees' experience, effectively protect their legitimate rights, and realize the unity of employee value, company value and social value.
? The Company was selected as the Industrial Internet Benchmark Factory in Shandong Province, and its Automated Intelligent Production Line for VR Products won the Silver Award of China Excellent Industrial Design. ? Our VR headwear products were listed as the National Manufacturing Single-Champion Products. ? A Headphone Sound Compensation Method, Device and Headphone won the First Prize of the Fourth Shandong Province Patent Award. ? The Goertek - Together Plan, a public service project initiated by the Company to focus on children's growth, went into more than ten elementary schools and established eight Goertek Growth Stations, where Goertek volunteers delivered courses of VR, drones, 3D printing and model assembly to children, also sowed sci-tech seeds in their hearts, inspiring them to develop into outstanding talents.
? Over 10,000 tons of waste was reduced through zero landfill and 33,000 tons of waste reduced through reuse and recycling. ? The zero landfill was awarded with platinum certification, reducing waste discharge and environmental impact (soil, atmosphere, etc.). ? Continuously promote special projects such as hazardous chemical information management, hazardous operation management and limited space management, boosting the quality and efficiency of safety management.
? In 2022, the Company diagnosed, evaluated and implemented 86 energy-saving special projects, reducing carbon emissions by 26,164tCO2e. ? The aggregate direct and indirect GHG emissions of Goertek and its manufacturing subsidiaries totaled 659032.59tCO2e, of which 29537.94tCO2e were direct GHG emissions and 629494.66tCO2e were indirect.
? Goertek actively develops its comprehensive compliance system, including but not limited to multi-field compliance specialties in trade, labor and employment, intellectual property, trade secrets, anti-corruption, anti-monopoly, and data security. Goertek commits sufficient resources to develop compliance guidelines and compliance systems for each speciality, so as to ensure the compliance of all its business activities. ? Forced labor is strictly prohibited, therefore the Company adopts a three-pronged approach of process management, training and communication, and supervision to avoid forced labor, harassment and abuse, so that employees' freedom of employment is respected and modern slavery is eliminated. ? Goertek strictly prohibits any discrimination against race, color, age, gender, sexual orientation, disability, pregnancy, religious belief, political affiliation, geography, association membership or marital status, and other factors related to discrimination. ? To create a diverse, fair, inclusive, respectful and safe working environment, Goertek makes efforts to improve its talent management system from the perspectives of employee welfare protection, promotion and development as well as occupational health and development, so as to grow together with employees.

2. Corporate Governance

2.1 Board Governance

Please refer to the Section IV "Corporate Governance" of the Annual Report 2022 of GoertekInc.

2.2 Shareholders' Rights and Responsibilities

Please refer to the Section IV "Corporate Governance", Section VI "Important Matters" andSection VII "Changes in Shares and Information about Shareholders" of the Annual Report 2022of Goertek Inc.

2.3 CSR Management Committee

Goertek upholds the core values of "client orientation, employee development, integrity,pragmatism, and mutual benefits" and the corporate social responsibility policy of "compliancewith laws and regulations, respect for employees, sustainable development, and socialcontribution", and strictly abides by the International Labor Organization (ILO) Conventions,the Convention on the Rights of the Child, the Universal Declaration of Human Rights (UDHR),and other ethical standards related to employee rights and interests, with a view to activelypursuing the unity of economic growth and social responsibility. Our CSR managementphilosophy defines that we should always act as are responsible global corporate citizen whilepursuing profits. We always take shareholders, creditors, employees, clients, communities andsustainable development as our responsibility, protect employees' legitimate rights and interests,engage in environmental protection and public service activities, actively facilitate thefulfillment of stakeholders' social responsibilities, and boost the coordinated and harmoniousdevelopment of the Company and society.Since its establishment, Goertek has gradually set up its quality, environmental and occupationalhealth and safety management systems, and passed the certification of ISO9001, ISO14001 andISO45001, and introduced the EU WEEE/RoHS Directives. In 2005, the Company was certifiedby the ISO/TS16949. In 2007, the Company founded its occupational health and safetymanagement committee and a dedicated company-level division to take full responsibility forthe OH&S system for employees. In 2009, a hazardous substances management system was setup and the Company was certified by the IECQ QC080000. It was further certified by theIEC17025 in 2010, and by National Integration of Informatization and IndustrializationManagement System, the China AEO Certificate by China Customs, the GB/T29490-2013Intellectual Property Management System, and the ISO/IEC27001:2013 Information SecurityManagement System in 2016. In 2011, Goertek further researched international CSR standardssuch as SA8000, officially implemented the CSR system. and timely benchmarked with industrystandards and obtained external opinions in line with ISO26000, China ElectronicsStandardization Association Standard T/CESA 16003-2017 and other international standards(such as GRI Standards and RBA Code of Conduct), as well as requirements of variousstakeholders.In order to facilitate its CSR efforts, Goertek formally established the CSR ManagementCommittee in 2013. In 2021, the Company continued to optimize and improve the scope andresponsibilities of the CSR Management Committee based on its business adjustment, so as tobetter meet the requirements of various stakeholders in the field of CSR. Moreover, we haveestablished the committee operation mechanism to continuously upgrade the company's CSRgovernance and improve the overall decision-making and operational efficiency of the

committee. The current organizational structure of the CSR Management Committee as follow:

The President of the Company serves as the Head of the CSR Management Committee, and thecore management of the Company's Vice President or above serves as the member of theCommittee, who is responsible for decisions on the overall CSR policy of the Company. TheCSR Management Committee consists of a dedicated team responsible for formulating CSR-related rules and regulations, and assisting in the formulation of CSR strategic objectives andwork planning. The Committee coordinates the CSR work of various teams by providingguidance, coordination, supervision, inspection and evaluation of their work, and assists inorganizing various CSR meetings and events. The CSR Management Committee convenes adecision-making meeting at least once a year to discuss relevant issues and report on workprogress. All related professional teams communicate with stakeholders on CSR managementconcepts, objectives, policies and practices, and provide the feedback on the demands ofstakeholders to the dedicated team of CSR Management Committee for review. The BusinessGroup Management Team formulates annual work plans and regularly reviews work progress.In order to further optimize the operation of the CSR Management Committee and enhance thecapability of its members, we conducted the SA8000 internal auditor training for CSR-relatedemployees in 2022, with all participants successfully passed the assessment and obtained theSA8000 internal auditor certification.In addition, a standardized CSR target indicators and management plan have been developed.The CSR Management Manual, as the overarching guideline for Goertek to advance its CSRwork, covers various business areas, including targets for client satisfaction, employeesatisfaction, intellectual property, ECPUOV (electricity consumption per unit output value),number of environmental accidents, OH&S management, and HSPM which are integrated intothe performance assessment of each department, thus strongly promoting the organic integrationof social responsibility management and daily operation.

2.4 Integrity in Business

Integrity, as one of Goertek's core values since its establishment, represents the moral bottomline for all Goertek members in their conduct and work. We always believe that compliance isthe fundamental and cornerstone for ensuring high product quality and achieving sustainabledevelopment, and a key factor in winning the trust of our business partners. We insist on strictlycomplying with industry requirements and relevant national and regional legal and regulatoryrequirements applicable to our business development, abiding by business guidelines and ethical

Committee

CSR Management

Expert Group

Human Resources

EHSMorality

Chain

Investment/CustomerGovernment/Supply

Leading Team of

Business Group

Subsidiary/

Platform

Management Team

requirements, operating with integrity, and ensuring that our products meet industry standardsand customer needs.Adhering to open, honest and transparent business model, we require all employees tounderstand and strictly comply with the Company's compliance policies and applicable laws andregulations in the course of conducting business in all areas. All forms of commercial briberyare prohibited, and a "zero tolerance" attitude towards any violations of laws and regulations,ethics and industry standards.We keep refining our anti-corruption system, and repeatedly emphasize integrity and fairnessthrough dedicated anti-corruption projects, case notification, publicity and education, in order tofoster a transparent and credible business environment. Meanwhile, we expect that our partnersmay understand and cooperate with our compliance policies, comply with applicable laws andregulations and industry requirements together with all of our employees, fulfill their complianceobligations, establish stable cooperative relationships and continue to carry out various businessactivities under the premise of compliance with laws and regulations.To rigorously perform compliance obligations and comply with relevant laws, regulations andcompliance policies, we have been actively improving our comprehensive compliance systems,including but not limited to multi-field special compliance projects in trade, labor andemployment, intellectual property, trade secrets, anti-corruption, anti-monopoly, and datasecurity. We commit sufficient resources, develop compliance guidelines and systems for eachspecial compliance project, and deploy internal and external compliance experts to carry out riskassessment and handling for all business activities in each field, thus ensuring the compliance ofall our business activities.In 2022, the Company released the Goertek Cadre Standards and Instructions on TradeCompliance on the basis of the existing system, to encourage its partners to actively report andjointly build a line of defense for integrity. The Company conducts independent investigationsinto any report made by employees, partners or others, and keeps all the reported informationand materials confidential.We will continue to advance the building of our own compliance system, devote ourselves torealizing the value of compliance, and cooperate extensively with external professionalcompliance consulting organizations to conduct regular compliance audits, and voluntarilyaccept supervision from all parties to jointly promote and ensure the high-speed operation of allour business activities on the track of compliance.Channels for ReportingShould you find any violation of laws and regulations by Goertek's employees or partners, pleasereport it in the following way, which Goertek promises to keep strictly confidential - Email:

tousu@goertek.com.

2.4.1 Fair Competition

The Company is firmly committed to maintaining a level playing field with relatively well-developed regulations on compliance management. We comply with anti-monopoly related lawsand regulations, adhere to the principle of fair competition in market operation, and proactivelyestablish communication channels with relevant law enforcement agencies to carry out reviewand declaration in accordance with their regulatory requirements. We trade fairly and equitably,

respect our business partners, and sign relevant contracts with our customers on an equal footingin accordance with the relevant requirements of the Civil Code of the People's Republic of China,as well as the Integrity Agreement to provide strong support for fair transactions between theparties. To firmly protect intellectual properties, we focus on intellectual property services andthe intellectual property ecosystem, with dedicated intellectual property personnel anddepartments, as well as an intellectual property management system that runs through the entireenterprise chain.

2.4.2 Anti-Corruption

The Company attaches great importance to anti-corruption and anti-fraud by establishing an anti-fraud mechanism to identify the key areas, key links and major aspects of anti-fraud. All kindsof complaints are handled and audit investigations are carried out, with a focus on and inspectionof possible corruption and fraud in the course of internal auditing, so as to shape a corporateculture of integrity.To prevent corruption and other unlawful acts of employees and maintain a fair and just businessenvironment, the Company has set up the systems such as the Regulations on Rewards andPunishments for Employee Behaviors, which all employees are required to study and follow. Toenhance the integrity awareness and legal consciousness, the Company organized all itsemployees to sign the Integrity Agreement in 2022, undertaking to act on the principles offairness and impartiality in business dealings with all parties and ensure that the interests of allparties not be infringed due to corruption. In addition, the Company stepped up its efforts tocrack down on fraud, with multiple fraud cases punished. Meanwhile, to enhance employees'awareness of integrity and laws, the Company conducted compliance training for employeesthrough on-site and online video, and promoted the concept of integrity to employees andsuppliers by means of integrity publicity posters during Chinese New Year, Mid-AutumnFestival and International Anti-Corruption Day. In terms of management improvement, auditprojects in multiple areas were conducted to identify business risks and improve internalmanagement, which effectively boosted the sound development of the Company.

2.4.3 Information Disclosure

The Company has strictly complied with relevant laws and regulations such as the CompanyLaw of the People's Republic of China, the Securities Law of the People's Republic of China,the Rules Governing the Listing of Shares on the Shenzhen Stock Exchange, the Self-RegulatoryGuidelines for Listed Companies on Shenzhen Stock Exchange No.1 - Standardized Operationof Companies Listed on the Main Board, and performed the obligations for relevant informationdisclosure as required by law. For details on disclosure, please refer to the designated informationdisclosure media of the cninfo website at http://www.cninfo.com.cn, Securities Times, ChinaSecurities Journal, Shanghai Securities News and Securities Daily.

2.5 Internal Risk Management

Aiming at long-term sound operation, the Company benchmarks internal control practices in theindustry to cope with risks and challenges. The Company provides effective support for businesspartners and better management through the closed-loop management of internal control such astarget setting, risk identification, risk assessment, risk response, control activities and monitoring,in order to further enhance the value of internal control. Each business area conducts its own riskidentification and self-assessment to effectively identify risk issues. The risk assessment criteria

are established based on comprehensive factors such as the probability of risk occurrence and itsdegree of impact. By evaluating the risk level, a list of high-risk issues is determined for theCompany, with key special projects implemented to drive the resolution of the issues. Internalcontrol assessments and reports are conducted regularly or irregularly to continuously promotemanagement improvement and create an internal control management system with Goertek'scharacteristics.The Company conducts internal control over various business areas based on actual businessoperations, and enhance the management's attention and business personnel's awareness ofinternal control by multi-channel and multi-form publicity means such as internal controlbriefings, internal control knowledge classes and posters, fostering a culture of internal controlfor all staff and solidifying the foundation of internal control environment for the day-to-dayinternal control operations.A series of training and empowerment on internal control knowledge are organized with differentlevels, to cultivate the company members' consciousness and initiative of internal control in thewhole process from basic knowledge to system construction, so as to further deepen thecomprehensive and systematic understanding of the internal control system, thus facilitatingbetter deployment of methods in internal control practices.

As the development of the Company raises higher requirements for risk management capabilityand refined management, each business area organizes cross-departmental and cross-processinternal control work-related seminars as per identified risk issues, so as to effectively integrateinternal control with business in depth, identify the difficulties in management in conjunctionwith actual business, propose suggestions for solving problem and boost managementimprovement.We consolidate our internal control mechanism in accordance with regulatory requirements oninternal control of listed companies, such as the Basic Standard for Corporate Internal Controland the Guidelines for Supporting Corporate Internal Control. We have formulated internalcontrol management systems and specific implementation rules that match our businesses, toguide each business area to independently carry out internal control inspections, cross-validation,implementation of key special projects and regular internal control assessments, so as tocontinuously optimize business processes and strengthen internal management. We effectivelyidentify key control points in business processes to ensure that activities in all business linksoperate in an orderly and compliant manner, thereby promoting our sustainable and sounddevelopment.To effectively follow our strategy and business objectives, we have strengthened thestandardization of our operations, and reinforced our audit functions to cover the entire scope of

our business, ensuring that our corresponding management system measures and procedures areimplemented comprehensively and accurately, while attaching great importance to internalsupervision to jointly drive the risk control capability enhancement and risk management systembuilding of our organizations at all levels. To improve the quality, standardization andindependence of our internal audit work, we have established a dedicated internal audit unit,responsible for setting up our internal audit system, formulating audit plans, and implementingaudits and inspections of financial information and various operations.

2.6 Collaboration with Stakeholders

2.6.1 Stakeholder Communication Mechanism

Communication with key stakeholders is essential to our CSR efforts. Therefore, wesystematically sort out the stakeholders, and jointly solve any issues related to sustainabledevelopment through their engagement in the management, production and operation process,to achieve innovative collaboration and create shared value ultimately.The following are the primary stakeholders, communication channels and their main topics ofconcern:

StakeholdersMain communication and feedback channelsMain topics of concern

Shareholders and

creditors

Shareholders and creditorsShareholders' meeting Board meeting Exchange meeting for investors Bondholder meetingBusiness status and information on significant matters Survey on the fulfillment of corporate social responsibility Corporate governance structure Protection of shareholders' rights

Clients

ClientsCustomer satisfaction survey Client visit Special seminarCorporate development strategy and supply chain capabilities Compliance Employee health and safety Green products Product safety Client privacy protection

Employees

EmployeesEmployee satisfaction survey Employee reception day Employee proposal system Employee seminar Suggestion boxCorporate development strategy, and mid- and long-term planning Employee compensation and benefits Employee training and development Employee health and safety

Suppliers

SuppliersSupplier conference Supplier review Special seminarFair procurement, integrity and honesty Fulfillment of social responsibility commitments Green products Product safety Supplier assessment

Universities andresearch institutes

Universities and research institutesAcademic cooperation SeminarScience and technology innovation Intellectual property rights Talent cultivation

Government

GovernmentWork meeting Work reportCompliance Corporate development strategy
StakeholdersMain communication and feedback channelsMain topics of concern

Work inspection

Work inspectionCorporate governance Job and employment Taxation compliance Product quality Environmental protection and occupational safety Green products

Media

MediaSpecial interview Information disclosureCorporate development strategy Corporate governance

Communities

CommunitiesPublic service activity Forum Participation in community projectsCommunity progress and development Environmental protection Public service activity

2.6.2 Association Membership

In 2022, Goertek is committed to enhancing communication with the outside world forinformation sharing and win-win cooperation. The following is a list of associations in whichGoertek joined in 2022:

Association NamePosition Served

Industry of Virtual Reality Alliance

Industry of Virtual Reality AllianceExecutive Director

China Electronic Components Association

China Electronic Components AssociationRotating director general

China Federation of Electronics and

Information Industry

China Federation of Electronics and Information IndustryExecutive Director

China Audio Industry Association

China Audio Industry AssociationVice President

Electroacoustic Devices Branch of China

Electronic Components Association

Electroacoustic Devices Branch of China Electronic Components AssociationDirector general

2.7 Brand Building and Negative Impact Handling

Since the establishment of Goertek TV in September 2021, 18 episodes have been released withan average length of 15 minutes each and an average of more than 10,000 views. Employeeslearn about major company events, show their department styles, engage in cultural activities,and order songs to send blessings through Goertek TV, which records Goertek's developmentwith news, and Goertek people deepen their sense of identification of Goertek. It has become amajor platform for Goertek people to learn about our current developments and also one of theprincipal bases for our cultural sedimentation.In 2022, Goertek created a symphonic version of our theme song Together and produced a musicvideo - Insights into Goertek with a Symphony. In this work, the machines are endowed withlife, playing a symphony of win-win cooperation. The melody and images complement eachother, presenting the development of the Company from budding and growing, to flourishingwith a promising future.The emotionally rich and mind-blowing symphony has swept through Goertek members'WeChat Moments, becoming a warm-up music video for numerous occasions such as our annual

meeting and staff gatherings, and reaping wide acclaim from both internal staff and externalaudiences.

In 2022, Goertek kept upgrading its brand mascot, Goerboy, whose 3D image gained popularityamong employees. Goertek customized a variety of new peripherals for its employees, includingthe Goerboy car phone number plates, new multi-functional cartoon card holders, desktop phoneholders, 3D key chains, cartoon magnetic buckle notebooks, and astronaut Goerboy dolls, aswell as the fifth and sixth seasons of Goerboy emoji sets, well received by employees and theirfamilies as well, and widely used in Goertek's Mid-Autumn Festival celebrations, employees'birthday parties and other life events.Goertek has set up a public opinion management system to effectively monitor harmfulinformation and those that disturb the social order 12 hours a day, 7 days a week, so as to quicklyspot public opinions and promptly respond to them.

3. Products and Services

3.1 Product Quality and Safety

Goertek's mission is to create a better life enriched by technology. At its early stage ofestablishment, Goertek proposed that "Quality is the baseline of the Company, and initiative isthe source of development", with great emphasis on quality. Goertek always sticks to its originalaspiration of "manufacturing world-class products". We are committed to providing clients withthe highest quality products, with continuous improvements to ensure the safety of our productsand enhance customer satisfaction. We are the first in the industry to pass the ISO9001 qualitysystem certification. On this basis, we continue to refine our quality system management toperfection by successively obtaining IATF16949, IECQ QC080000, ISO13485, ANSI/ESDS20.20, IEC61340-5-1 and medical NMPA medical management system certification. Awardedwith Shandong Provincial Governor's Quality Award in December 2011, and nominated for theChina Quality Award in September 2021, we continuous improve our quality assurancecapabilities to pursue exceptional quality.We always make product safety management a priority for our Company. We have established

a safety compliance management system that covers the entire product life cycle, from the safetycompliance management at the product R&D stage, to the strict screening at the testing andcertification stage, to the continuous process management during mass production, and all theway to the end of the product life cycle. Meanwhile, we regularly review and strictly complywith relevant laws and regulations such as the Product Quality Law of the People's Republic ofChina, as well as product safety-related regulations and standards (including regulatoryrequirements for safety codes, electromagnetic compatibility, wireless certification, energyefficiency requirements, and industry technologies) in places where our products are soldworldwide, including China. Our professional safety certification management team ensures thestable operation of our product safety management system and continuously delivers sound andsafe products to our clients and consumers. Goertek actively takes part in technical exchangeson safety regulations organized by the industry and the state, and as an enterprise, engages in thecompilation of GB4943.1, the latest safety regulation standard released by the state in 2022.Nowadays, battery safety is receiving more and more attention both in the industry and aroundthe world, with lithium-ion batteries and related products were also included in the latest nationalmandatory safety catalog in 2022. Goertek has also set up our professional battery safety testinglaboratory, covering more than a dozen relevant testing capabilities to ensure that batteries forGoertek products meet safety specifications. In 2022, Goertek continued to strengthen productsafety management, and kept placing the products with zero violations of safety regulationrequirements on the market. It received more than 50 safety certification audits by third partiesthroughout the year, all of which were passed with zero defects. In addition, Goertek remaineda Class A enterprise of the China Quality Certification Center.

3.2 Technological Innovation

As an innovative high-tech company with global presence, Goertek attaches great importance toits technological innovation. Upholding the product strategy of "precise components + intelligenthardware devices", the Company gives full play to the synergies between its components anddevices business, to grasp the development opportunities of emerging intelligent hardwareproducts in the post-mobile era. We identify key and common technologies in close alignmentwith market and customer needs, and continuously step up R&D investment to actively build thebusiness-driven R&D organizations such as Goertek Institute of Technology, which also servesas a platform for technological innovation and talent pooling. We adhere to open innovation,actively expand innovation resources and channels globally, and build innovation platformsjointly with renowned universities, research institutes and upstream and downstream industrypartners to promote forward-looking technology layout and collaborative innovation.By adhering to technological innovation, the Company achieved a series of innovative results in2022: the Company was selected as the Industrial Internet Benchmark Factory in ShandongProvince; Won the Silver Award of China Excellent Industrial Design with the AutomatedProduction Line for AR Products; our VR headwear products were listed as the NationalManufacturing Single-Champion Products; A Method, Device, and Headphone for HeadphoneSound Compensation won the First Prize of the Fourth Shandong Province Patent Award;Chairman Jiang Bin won the top prize of Shandong Province Science and Technology Awardsin 2022; Rao Yi, the leading expert of optical technology, won the Youth Award of ShandongProvince Science and Technology Awards.

3.2.1 R&D Investment

The Company has set up its core R&D centers in Weifang and Qingdao, as well as R&D andsales centers in more than ten countries and regions, including the United States, Europe, Japanand Korea, and local R&D centers in Beijing, Shanghai, Shenzhen and Nanjing, integratingglobal resources and forming a global R&D model featuring "dual cores + multiple locationscollaboration. By staying close to forefront of technical talents and laying out new technologyresearch, we reserve technology and talents for the future development of the Company.Meanwhile, by closely following the frontiers of technological innovation, identifying potentialopportunities of technology, and monitoring the technology trends in real time, we are able tosteer the direction for the technology development of the Company.Our R&D investment has exceeded RMB 16 billion in the past five years, accounting for morethan 5% of our operating revenue. We have made significant breakthroughs in technologicalcooperation among industries, academia and research institutes, development of technicalstandards, R&D organization and platform building.Technical Cooperation among Industries, Academia and Research InstitutesThe Company attaches great importance to technical cooperation among industries, academiaand research institutes. In 2022, the Company carried out a number of technological researchprojects together with some universities and research institutions such as Tsinghua University,Shandong University, Southeast University and Xiamen University, to explore, research andsolve a number of technical challenges in the industry. In 2022, Goertek was selected as a pioneerenterprise for the university-industry collaboration project by the Ministry of Education. Beingone of the first batch of industry-education integration enterprises in China, Goertek has beencooperating closely with renowned universities and colleges to forge new modes of talentcultivation, including the Excellent Engineer Class, Postgraduate Joint Training Base,Employment Internship Base, and Modern Industrial College. From March to August 2022,Goertek held the Goertek Cup VR/AR Challenge for Universities, in which over 110 teams frommore than 40 domestic and foreign universities participated.Technical Standards EstablishmentGoertek is actively getting involved in technical standards initiatives and their compilation. In2022, 6 technical standards that Goertek was involved in compiling were officially released,including 2 national standards, 1 industry standard and 3 group standards. In addition, we tookpart in the compilation of 7 new standards, comprising 2 national standards and 5 group standards.The international standard of Micro Speaker, which Goertek participated in its compilation,received a fund of 500,000 RMB for Weifang's 2022 annual strategic funding project fordeepening the standardization. Goertek was selected into Weifang's cultivation list of enterpriseswith standard innovation, and joined the Augmented Reality Research Group jointly establishedby the National Audio and Video Standards Committee and the China National InformationTechnology Standardization Network, where it was elected as the Vice Chair of the WorkingGroup. Our expert in electrification was elected as a member of the eighth TC27 NationalTechnical Committee for Standardization of Electrical Information Structure, Documentationand Graphic Symbols.R&D Organization and Platform BuildingThe Technical Committee is a professional organization set up to enhance our technicalcompetitiveness, with 7 technical subcommittees under it, specializing in whole set products,

whole set processes, equipment, and testing, among others. There are more than 600 expertsinvolved in 159 technical subdivisions covering R&D, processes, and testing. The TechnicalCommittee effectively supports our business development through technical R&D, problemsolving, intelligent manufacturing mode upgrading, and capacity enhancement of R&Dengineering talents.In November 2022, the National Virtual Reality Innovation Center (Qingdao) led by Goertekwas officially unveiled, marking it the only national innovation center in the field of virtualreality. With this, Goertek will intensively focus on key common technologies of virtual reality,ensure that core indicators such as comprehensive performance, light weight and comfort leadthe country, and strive to build the world's first virtual reality testing platform for the entireindustry chain, so as to enhance China's voice in the global virtual reality field. In December,the key laboratory of virtual reality in Shandong Province jointly built by Goertek and ShandongUniversity was officially approved for establishment. By the end of 2022, Goertek alreadyowned 10 R&D platforms at or above the provincial level.

3.2.2 Intellectual Property Protection

The Company not only fully respects the intellectual property rights of others, but also attachesgreat importance to the role of intellectual property rights in its operation. As such, the Companyactively utilizes intellectual property rights to enhance its core competitiveness, and vigorouslypromotes its proprietary products, to give full play to the value of its patents, and to shape itscore technologies and key technologies with its own intellectual property rights. A soundinnovation cooperation mechanism is structured and established to integrate internal and externalresources and carry out effective collaborative innovation and re-innovation. Intellectualproperty strategies are formulated and implemented, and the operational mode and workingmechanism of intellectual property management are improved to enhance the capability ofintellectual property creation, application, management and protection. We also actively respondto the national strategy by cooperating with well-known universities and research institutes inthe industry, academia and research, forming industrial clusters thanks to the extended influenceof such cooperation across the entire region, and enhancing the overall competitiveness of theindustry and the region.Our intellectual property protection efforts have been recognized by government departments atall levels, with the following honors in recent years: National Intellectual PropertyDemonstration Enterprise, National Intellectual Property Advantage Enterprise, National PilotEnterprise for Patent Operation, National Technology Innovation Demonstration Enterprise,Shandong Provincial Trademark & Brand Innovation Demonstration Unit, and ShandongProvincial Intellectual Property Brand Unit for Key Core Technologies. We have remained thewinner of the First Prize of the Shandong New and Old Growth Driver Conversion High-ValuePatent Cultivation Competition, and won the Silver Award of the China Patent Award, as wellas the Excellence Award of China Patent Award, the First Prize of Shandong Province PatentAward and the First Prize of Weifang City Patent Award for multiple times.During the reporting period, the Company applied for 3,388 patents, including 2,545 inventionpatents. A total of 2,195 patents has been granted, including 1,250 invention patents. TillSaturday, December 31, 2022, the Company has totally applied for 29,206 patents (including3,738 foreign patent applications), including 15,647 invention patents; Total of 17,720 patentshave been granted, including 5,415 invention patents.

3.3 Client Privacy Protection

The Company strictly protects clients' commercial information throughout the operation of itsinformation security management system, to guarantee that all its activities meet clients'requirements for information security. It has also established relevant systems and managementregulations to standardize the information security management of client privacy informationand project information in the process of collection, storage, use, transmission, disclosure anddeletion, so as to ensure that client information is handled properly without any leakage, loss orunauthorized access.When communicating with other operators or clients, we are careful not to discuss competitiveor sensitive information regarding selling prices, sales volume, or client information, ensuringeffective protection of business information. The Company has formulated the InformationSecurity Risk Management Regulations, implemented it strictly. The Company ensures propernetwork security protection by assessing all kinds of existing information systems and addingpassword protection and other functional modules in information systems. Meanwhile, it hascarried out regular inspection and information security training-related activities to strengthnetwork security at all times. Moreover, we have established a sound complaint and feedbackmechanism for information leakage, whereby internal and external persons can make complaintsand reports by various means, such as email, WeChat and telephone. We have strictconfidentiality and protection measures for whistleblowers to ensure that they will not beretaliated against.

3.4 Client Satisfaction

Unswervingly practice of customer orientation, the Company vertically integrates precisioncomponents such as acousto-optic structural parts, intelligent hardware and complete systemsolutions, and builds a proactive and rapid response after-sales service system from design, R&D,testing to automated manufacturing, to actively collect clients' opinions for efficient solutions,timely stop losses and make immediate compensations, so as to provide clients with qualityproducts and services and win their trust with good after-sales service.4 Value Chain

4.1 Supplier Selection and Evaluation

4.1.1 Supplier Code of Conduct

The Company requires suppliers to shoulder their social responsibility in labor protection,environment, health and safety, and ethics by signing the Supplier Social ResponsibilityCommitment and Integrity Commitment with them. In addition, it guides suppliers to establishharmonious relationships with their employees, boosts their CSR awareness and managementcapabilities, and works with them to build a responsible supply chain.

4.1.2 Supplier Selection

While serving clients and meeting their CSR system management requirements, Goertek isconstantly improving its own CSR system management. We work closely with suppliers topromote and convey ideas of CSR management, and call on them to improve their own CSRmanagement capabilities and assume their due social responsibilities and obligations, aiming tocraft a safe, efficient, just and sustainable supply chain system. Goertek strictly complies withthe terms of CSR agreement. Through risk assessment, audit and verification of suppliers'

practices in environmental, social and governance aspects, Goertek identifies actual and potentialnegative environmental impacts in the supply chain, and imposes a deadline for rectification andreview on those with existing or potential non-compliance with social responsibility. If notrectified, Goertek will suspend the partnership as appropriate.

4.2 Supply Chain Cooperation Mechanism and Sustainable Development Management

4.2.1 Daily Supplier Management

At the end of 2022, Goertek integrated its supply chain organization and established a supplierquality management platform. The Supply Chain Division conducts regular CSR audits andprovides CSR training to our suppliers. In addition, it offers on-site guidance and consultationon CSR non-compliance. Meanwhile, we adopt more specialized requirements and standards forsocial responsibility management by absorbing the most advanced theoretical expertise andpractical approaches from the international community, benchmarking social responsibilitystandards against advanced domestic manufacturers, and consolidating supply chain resources.By conducting both regular and irregular audits, we can promptly identify existing and potentialproblems, and adopt closed-loop management and continuous promotion for any non-compliance issues identified until they are resolved. Goertek sets a CSR management red line insupplier performance evaluation. If a supplier shows a non-compliance item during a CSR audit,that performance assessment will result in a non-compliance. Goertek requires suppliers to makethorough improvement and supervises it accordingly, to enhance their social responsibilityawareness and capabilities, thus forging a more efficient, high-quality and sustainable supplychain system.

4.2.2 Conflict Minerals Management

Goertek is committed to responsible sourcing of tin, tantalum, tungsten, gold, cobalt, mica andother mineral raw materials used in its products, and to promote the development of policiesamong its suppliers to prevent and reduce risks of minerals contained in their manufacturedproducts coming directly or indirectly from high-risk areas, in accordance with the requirementsof the OECD Due Diligence Guidance and the Chinese Due Diligence Guidelines forResponsible Mineral Supply Chains (hereinafter collectively referred to as the "Guidelines") aswell as the RMI International Guidelines. The Company requires suppliers to conductresponsible mineral due diligence on the minerals used in the products it purchases, and to sharedue diligence information with customers to ensure consistency between its supply chain policiesand the implementation of the Guidelines. The Letter of Commitment on Conflict-free Mineralsis also included as an attachment to the supplier contract or as a supplemental agreement forbinding regulation. The Company conducts a corporate-level responsible mineral inspection atleast once a year, and conduct a real-time investigation into the corresponding suppliers' liabilityfor minerals according to customer requirements. Continuously promote the responsible mineralprocurement by clients and suppliers together throughout the supply chain.In addition, Goertek complies with laws and regulations on trade control and economic sanctionsrelated to Goertek's business in China, the European Union and the United Nations, and otherinternational organizations and countries including the United States, to effectively fulfill itsexport control responsibilities and obligations and to establish a global image of corporateintegrity and responsible management. Goertek has set up a Trade Compliance Group, takingfull responsibility for formulating and improving the Company's trade compliance policies,systems, organization and processes, approving or making decisions on major trade compliance

matters and solutions, promoting the implementation and enforcement of relevant requirementsin applicable business areas, and conducting regular internal reviews and audits of the tradecompliance system.5 Green Development

5.1 Environmental Protection

Environmental protection has always been an integral part of Goertek's sustainability strategy.Our efforts in various aspects such as wastewater, noise, waste, green office, and greenhouse gasverification have achieved good results. In recognition of the great significance of protecting theenvironment and creating a sustainable society, Goertek has integrated environmental protectioninto every aspect of its operations and throughout the life cycle of its products. According toISO14001:2015, the Company has established its environmental management system, applicableto all stages of production, including design, development, manufacturing, delivery and serviceof its products. Environmental factors are identified and evaluated with respect to the life cycleof the products, and corresponding control measures are formulated for critical environmentalfactors. No environmental protection-related violations and related penalties have occurred sincethe establishment of the Company.

5.1.1 Environmental Management System

To ensure the effective implementation and maintenance of the energy management system, theCompany has formulated and released 11 energy management process systems to regulate thefull life cycle management of energy from the demand, procurement and conversion totransmission and distribution and consumption.During the reporting period, Goertek was granted the national-level green factory certification,and its five subsidiaries were granted ISO50001 certification, 13 subsidiaries in Weifang, SouthChina and Vietnam were granted ISO14064 certification, and one receiver was grantedISO14067 certification. Meanwhile, the Company has trained a total of 98 energy managementsystem internal auditors and 110 ISO14064 internal carbon verifiers, continuously injecting freshknow-how and talents into its energy system resource pool. Looking forward, the Company willcontinue its efforts in promoting green factory, carbon verification and carbon footprintcertification, to further deepen the construction of its management system.

ISO50001 CertificationISO14064 CertificationISO14067 Certification
National-level Green Factory CertificationISO50001 TrainingISO14064 Training

Environmental protection has always been an integral part of Goertek's sustainable developmentstrategy. In accordance with the Environmental Protection Law of the People's Republic of China,the Environmental Impact Assessment Law of the People's Republic of China, and theEnvironmental Protection Tax Law of the People's Republic of China, among other laws andregulations, the Company has formulated and issued such institutional documents as theEnvironmental Protection Management System, the Three Concurrent Management System forConstruction Projects, and the Environmental Operation Control and Testing ManagementSystem. We have established a sound environmental management process with ISO14001environmental management system certification, and formulated such environmentalmanagement process documents as the Environmental Factor Identification and EvaluationManagement Process, EHS Testing Process, and Zero Landfill Certification Process, toguarantee the standardization of our environmental management and ensure our environmentallycompliant operations. There has been no environmental protection-related violations or relatedpenalties since the establishment of the Company. By the end of the reporting period, Goertekwas granted the ISO14001 environmental management system certification and the provincialgreen factory certification. Looking forward, Goertek will continue to promote thestandardization of its environmental management and improve its environmental managementsystem and processes.Furthermore, Goertek identifies and evaluates potential environment-related contingencies, andfor each scenario, it develops and implements contingency plans and corresponding proceduresto minimize damage to life, environment and property. Currently, some contingency plansrelated to environmental protection have been released within the Company, including theEnvironmental Pollution Accident Contingency Plan and the Radiation Leakage AccidentContingency Plan, and relevant personnel are required to attend training and drills. Goertekdiscloses EPI data in the IPE system every year, and completes the environmental statisticssystem for accounting purposes. We organize emergency response training for all employees atleast once a year, along with emergency drills. For environmental managers, empowermenttraining is organized from time to time to strengthen their management capabilities andprofessional skills.

5.1.2 Pollution Prevention and Control and Circular Economy

To fully implement China's green development strategy and continue to meet the needs of clientsand consumers for green products, we are actively improving our greenhouse gas-related policysystem, and promoting the construction of distributed photovoltaic power stations, so as togradually form a green and low-carbon manufacturing model with Goertek characteristics.In 2022, the aggregate GHG emissions directly from Goertek and its multiple manufacturingsubsidiaries, and indirectly from energy, totaled 659,032.59tCO2e, of which 29537.94tCO2ewere directly from GHG emissions and 629,494.66tCO2e were indirectly from energy.

Direct GHG emissions (Scope 1)tCO2e29537.94

Indirect GHG emissions from energysources (Scope 2)

Indirect GHG emissions from energy sources (Scope 2)tCO2e629494.66

Total GHG emissions (Scope 1 and 2)

Total GHG emissions (Scope 1 and 2)tCO2e659032.59

Notes:

①GHG emissions were quantified using a computational model based on 2022.

②Emission factors were cited from the 2006 IPCC Guidelines for National Greenhouse GasInventories, the average CO2 emission factors of regional power grids in China in 2012, and theCO2 emission factors of Vietnam power grid data in 2021 issued by the Ministry of NaturalResources and Environment of Vietnam.

③GWP cited IPCC's 5th Assessment Report.

The types of energy consumed by Goertek and its manufacturing subsidiaries include electricity,steam, natural gas, high-temperature water, liquefied petroleum gas, diesel, and gasoline. Theamount of each energy source consumed is as follows:

Types of energyUnitConsumption of non-renewable energyConsumption of renewable energyTotal energy consumption

Electric power

Electric powerMWh711958.1543651.49755609.64

Steam

SteamTJ107.220107.22

Natural gas

Natural gasTJ165.840165.84

High-temperaturewater

High-temperature waterTJ114.130114.13

Liquefiedpetroleum gas

Liquefied petroleum gasTJ9.4709.47

Diesel

DieselTJ1.3901.39

Gasoline

GasolineTJ7.3207.32

Note: The calorific values of diesel, gasoline and natural gas for the manufacturing plants inChina were taken from GB/T2589-2020 General Rules for Calculation of the ComprehensiveEnergy Consumption, and the enthalpy of steam was taken from the textbook on engineeringthermodynamics; the calorific values of LPG, diesel and gasoline for the manufacturing plantsin Vietnam were taken from those released by the World Nuclear Association.The Company strictly complies with relevant national policies and regulations, with a view tobalancing the sustainable development of society, economy and environment. To minimizecarbon emissions from fossil fuels, the Company is actively promoting the construction ofdistributed photovoltaic power stations, to expand the proportion of clean energy and optimizeits internal energy mix. The capacity of photovoltaic power stations built in Weifang andRongcheng reaches 49.3 MW, with a total generation capacity of 43,651.49 MWh, reducedgreenhouse gas emissions by 38,601.01 tCO2e. In the future, we will continue to step up ourefforts in developing and promoting the construction of photovoltaic power stations. Meanwhile,we are also actively looking for opportunities to reduce energy consumption and carbon

emissions. We have set up and are implementing a prioritized emission reduction programfollowing a scientific path, with priorities as follows: improving energy efficiency, utilizingrenewable energy, purchasing renewable energy commodities, and purchasing carbon credits.

All the exhaust gases from Goertek meet the Class II standards in Table 2 of the IntegratedEmission Standard of Air Pollutants (GB 16297-1996), as well as the Emission Standard ofVolatile Organic Compounds - Part 7: Other Industries (DB37/2801.7-2019), the RegionalIntegrated Emission Standard of Air Pollutants (DB37/2376-2019) and the Standard for FugitiveEmission of Volatile Organic Compounds (GB37822-2019); the Vietnamese subsidiarycomplies with the Emission Standard for Organic and Inorganic Waste Gases(QCVN19/2009/BTNMT & QCVN20/2009/BTNMT). Goertek has formulated theEnvironmental Protection Management System and the EHS Inspection Process, andcommissions third-party inspection agencies to take samples from the general wastewater outletof each park every month for inspection and benchmarking analysis, in order to identify anyabnormal discharges and deal with them promptly. Goertek actively responds to the national callfor rational use of water resources in daily operations, so as not to waste or over-discharge. Thewater resources that Goertek uses are mainly taken from the municipal water supply system,mostly for residential use and equipment cooling and small amount for the cleaning process.Household wastewater mainly comes from discharge from office restrooms, dormitories andstaff cafeteria. In 2022, approximately 4,585,000 tons of water was consumed in each park ofthe Company in Weifang, of which the living area of the Photoelectric Park II was retrofittedwith a water reuse system, with an annual water recycling volume of 96,300 tons, used forcleaning and greening in the park. The industrial wastewater was 18,000 tons, all cleaningwastewater, which was uniformly discharged to the municipal pipe network, in line with theGB/T31962-2015 Wastewater Quality Standards for Discharge into Urban Sewers; theVietnamese subsidiary complies with the Local National Sewage Discharge Standards(QCVN40:2011/BTNMT, Grade 1B (COD<150mg/L, SS<100mg/L).Goertek strictly follows the Law of the People's Republic of China on Prevention and Control ofEnvironmental Pollution by Solid Waste, and on this basis, has formulated the WasteManagement System to ensure that waste generated in the course of manufacturing and daily lifecan be effectively controlled and properly disposed, so as to reduce or even avoid any pollutionto the Company and the surrounding environment as well as any personal harm caused by suchwaste, and to maximize the recycling of waste resources.Waste is collected and temporarily stored according to its forms and properties, which isgenerally categorized into general waste and hazardous waste. Among them, 625.9 tons ofhazardous waste were generated, all of which were transferred/discharged. 17,642.7 tons of

general waste were generated, all of which were discharged. Over 10,000 tons of waste wasreduced through zero landfill and 33,000 tons of waste reduced through reuse and recycling.For hazardous wastes, we identify and classify them as per the National Hazardous Waste List,and build storage facilities in accordance with the Standard for Pollution Control of HazardousWaste Storage to prevent them from secondary pollution to soil and groundwater. Thesehazardous wastes are then delivered to qualified third parties for disposal in strict accordancewith the requirements of the Bureau of Ecology and Environment. Meanwhile, in the wastemanagement, we always follow the principle of "reduction, reuse and recycling", dedicated toreducing hazardous waste through various measures such as upgrading production process,replacing raw and auxiliary materials and reusing chemicals. General waste is contracted toprofessional recyclers in a unified way for recycling and disposal. In terms of examination ofrecycler qualification, the third parties qualified for reuse is selected first. We do not disposewaste in-house.Upholding the principle of harmless treatment, resource recovery and waste reduction, theCompany carries out zero-landfill management at three levels of certification: platinum, goldand silver:

Platinum (optimal): 100% waste treatment conversion, of which thermal treatment with energyrecovery accounts for 10%;Gold: 98% waste treatment conversion, of which thermal treatment with energy recoveryaccounts for 6%;Silver: 94% waste treatment conversion, of which thermal treatment with energy recoveryaccounts for 4%.Zero waste to landfill is carried out through the treatment methods such as waste source reduction,reuse, recycling, resource recycling and incineration. Zero landfill approach was grantedplatinum certification, reducing waste discharges and minimizing the impact on the environment(soil, atmosphere, etc.). It also cuts the cost of waste disposal while increasing revenue fromsales of waste (turning waste into treasure).

5.2 Resource Conservation

5.2.1 Green Design

With the mission of "adhering to environmentally friendly design, promoting green procurementand manufacturing, and delivering compliant products", Goertek adheres to the managementpolicy of "complying with laws and regulations, boosting green manufacturing, manufacturingeco-friendly products, and satisfying customer needs", with a commitment to using more securematerials to produce safer products. In 2022, our green products continued to achieve theobjective of "three zeros": zero violations, zero accidents and zero customer complaints.Goertek takes the initiative to align with the IECQ QC080000 system standard of theInternational Electrotechnical Commission. Since the first certification of the hazardoussubstances process management system in 2009, our operations in Weifang, Qingdao,Rongcheng, Dongguan and Vietnam have all passed the system certification as of 2022, in orderto cope with the demand for declaration of hazardous substances in developed regions of the EUand the US. Among them, the Weifang Science and Technology Park, Rongcheng Goertek andVietnam Goertek have passed the Green Partner system certification set by our client. All our

products are compliant with the relevant laws and regulations of respective shipping placesincluding the EU, North America, Japan and Korea.In response to changing laws and regulations as well as international/national standards, ourGreen Product Management team continues to strengthen its professional capabilities. In 2022,the Company acquired a total of 35 updated laws and regulations, and issued the quarterlynewsletter Goertek's Interpretation of Laws and Regulations on Hazardous Substances (fourissues in total). Jointly with third-party agencies such as SGS and TUV, we have conductedtraining on standards for our staff and suppliers. A total of 50 employees have obtained theQC080000 internal auditor certificates, and more than 300 suppliers have attended the trainingon hazardous substances management organized by Goertek, ensuring the products continue tocomply with the EU RoHS, REACH, California 65, and TSCA, among other regulations.By the end of 2022, we had a total of 15 sets of XRF testing equipment, which are distributed inWeifang, Rongcheng, Dongguan and Vietnam, with sufficient testing resources. Our chemicaltesting laboratory in Weifang has obtained the ISO/IEC 17025 laboratory qualification(certificate number: CNAS L4750) which remains valid. TheCompany strictly control the compliance of raw materials byconducting as many as 120,000 tests on hazardous substancesthroughout the year, and fully meet customers' requirements for greenproducts. With the improvement of industry informatization, theCompany plans to continuously improve the systematization andautomation in green product management in order to cope with thedemand for hazardous substance declaration in developed regions ofthe EU and the US, such as SCIP and chemSHERPA.

5.2.2 Energy Conservation

The consumption of non-renewable energy is the largest carbon emission hotspot of theCompany. In order to reduce carbon emission intensity, we have set up a dedicated energydiagnosis group, and formulated and issued the control measures for operation of energy-consuming equipment and facilities such as production systems, production auxiliary systems,and office systems. In 2022, the Company diagnosed, evaluated and implemented 86 energy-saving special projects, reducing carbon emissions by 26,164tCO2e. Here are some of the bestcases from the report:

Case 1: Constructing a high-efficiency refrigeration room: reducing carbon emissions by

818.37tCO2e

The units in the refrigeration room of theElectroacoustic Park have been in operation for 16years, with a low comprehensive coefficient ofperformance (COP) of 3.51. After the upgradingand renovation, the COP was verified to rise to

6.32, making it a "leading" high-efficiency

refrigeration room.

Case 2: Upgrading and replacing inefficient screw machines: reducing carbon emissionsby 186.74tCO2e

The air compression station of the ElectroacousticPark consists entirely of screw machines, with theinput specific power at around 6.2. By replacingpart of these screw machines with high-efficiencycentrifugal air compressors and adopting the airsupply mode of mainly centrifugal machines +screw machines for adjustment, the powerconsumption per thousand cubic meters of gas hasbeen reduced and the energy efficiency level of thestation has been improved. At the end of the reporting period, the power consumption perthousand cubic meters of gas in the air compression station decreased from 103.4 kWh/km? to

101.77 kWh/km?, and the energy efficiency of the station improved by 1.58%.

Case 3: Frequency conversion transformation of the air-compression water cooling system:

reducing carbon emissions by 689.75tCO2eAccording to the temperature and pressuredifference between the supply and return coolingwater of the air-compression system in theElectroacoustic Park, VFC is realized for thecooling pump and the closed cooling tower fan inorder to reduce the energy consumption ofauxiliary machines and improve the overall energyefficiency of the gas-electricity ratio of the air-compression system.

5.2.3 Water Resource Conservation

In 2022, the Company consumed 4.918 million cubic meters of water in total. Given the highproportion of domestic water consumption, the Company, with a view to minimizingunnecessary per capita water consumption, strictly observed the energy management policy of"compliant energy use, efficient emission reduction, full participation and green development",and set per capita water consumption standards according to the Standard for Urban ResidentialWater Consumption.To strengthen employees' awareness of water conservation, the Company launched a series ofonline and offline water conservation activities such as water conservation quizzes, waterconservation case sharing, golden ideas, and water conservation pioneer awards during the 2022National Urban Water Conservation Publicity Week, closely revolving around the theme of"Water Conservation First for Green Development".

Water Conservation QuizzesWater Conservation Pioneer Honorary AwardWater Conservation Initiative

6. Employee Care

6.1 Protection of Employees' Rights and Interests

Goertek regards talent as one of its core competencies, and integrates employee developmentinto the corporate values. With the cultural slogan "We make, we share, we thrive", we advocatefor standardized employment. To create a diverse, fair, inclusive, respectful and safe workingenvironment, Goertek make efforts to improve its talent management system from theperspectives of employee welfare protection, promotion and development as well asoccupational health and development, so as to grow with employees.The total number of employees at Goertek reached 85,358 in 2022, serving different businessareas, as detailed below:

Number of staff of the parent company at the end of the Reporting Period32,783

Number of Staff of major subsidiaries at the end of the ReportingPeriod

Number of Staff of major subsidiaries at the end of the Reporting Period52,575

Total number of staff at the end of the Reporting Period

Total number of staff at the end of the Reporting Period85,358

Total number of staff who receive remuneration during the ReportingPeriod

Total number of staff who receive remuneration during the Reporting Period85,358

Number of retired staff the Company and its major subsidiaries arerequired to compensate

Number of retired staff the Company and its major subsidiaries are required to compensate0

Specialty composition

Specialty compositionCategory

CategoryNumber

Production staff

Production staff60,313

Sales staff

Sales staff684

Technical staff

Technical staff19,496

Financial staff

Financial staff281

Administrative staff

Administrative staff4,584

Total

Total85,358

Education background

Education backgroundCategory

CategoryNumber

PhD

PhD76

Postgraduate

Postgraduate3,641

Bachelor

Bachelor15,460

College degree

College degree17,079

Below college degree

Below college degree49,102

Total

Total85,358

6.1.1 Equal Employment

The Company fully implements the Labor Law of the People's Republic of China, the LaborContract Law of the People's Republic of China, and the Social Insurance Law of the People'sRepublic of China, among other relevant laws and regulations, and has established

corresponding management rules and regulations to eliminate all discrimination against race,color, age, gender, sexual orientation, disability, pregnancy, religious belief, political affiliation,geography, association membership or marital status, and other factors in the recruitment,employment, training, promotion, remuneration and benefits. The Company enters into laborcontracts with its employees on the basis of equality, voluntariness, consensus, honesty andcredibility in accordance with laws, and fully fulfills its labor contract obligations. It haslaunched a comprehensive electronic labor contract signing system to improve employees'experience, effectively protect their legitimate rights, and realize the unity of employee value,company value and social value.

6.1.2 Signing Rate of Labor Contracts

The Company fully respects and protects the legitimate rights and interests of employees, in fullcompliance with the Labor Law, the Labor Contract Law and relevant laws and regulations. TheCompany enters into labor contracts with all employees, with the signing rate of labor contractsstanding at 100% in all business scenarios ranging from induction of new employees to renewalat the expiration of contracts. In 2022, the Company fully realized the electronic management oflabor contracts to ensure the authenticity and validity of the whole signing process via theauthoritative electronic signature technology, and the contract content cannot be tampered with,which effectively protects the employees' legitimate rights and interests.

6.1.3 Anti-Forced Labor, Harassment and Abuse

The Company prohibits forced labor practices, including the use of forced, bonded (includingdebt bondage) or indentured labor, involuntary prison labor, slavery or human trafficking; nordoes it transport, harbor, recruit, transfer or accept such labor or services via threat, force,coercion, abduction or deception. Any labor contract signed between the employee and theCompany are on a voluntary basis.

6.1.4 Prohibition of Child Labor

The Company strictly prohibits the employment of child labor in its recruitment system, andadopts the "five-step method" for identity confirmation at interviews, from visual verification totechnical verification, to ensure that employees' identities are real and valid, so as to avoid childlaborers from mistakenly joining the Company. In addition, the Company has formulatedremedial measures for child labor to effectively implement its child labor protection obligations.

6.1.5 Employee Privacy Management

During the operation of the information security management system, the Company strictlycomplies with the Personal Information Protection Law of the People's Republic of China, andstandardizes the information security management of employees' personal private informationin the process of collection, storage, use, transmission, disclosure and deletion by establishingrelevant systems and management regulations, to promote the reasonable use of employees'personal private information and prevent its leakage, loss or unauthorized access.

6.1.6 Diversity and Equal Opportunity

We believe that diversity is as important as equal employment opportunity. As an internationalcompany, Goertek protects the rights and interests of its employees in all countries in accordancewith corresponding regional laws and regulations, and integrates diversity into its managementpractices to provide a more inclusive, respectful and diverse working environment.

In accordance with the Employment Promotion Law of the People's Republic of China, the Lawof the People's Republic of China on the Protection of Disabled Persons and other regulations,the Company respects equal employment opportunities for special groups such as disabledpersons, and treat them fairly in terms of labor protection and job adjustment. Meanwhile,according to the Law of the People's Republic of China on the Protection of Women's Rightsand Interests and the Special Rules on the Labor Protection of Female Employees, the Companystrictly protects the legitimate rights and interests of female employees during the "three periods",namely pregnancy, maternity leave and nursing period, and reduces the workload of pregnantfemale employees who are unable to take up their original work or otherwise assigns them otherwork that they can adapt to. The protection of employees' legitimate rights and interests hasfurther strengthened the cohesion of the Company, creating a multi-win pattern of harmoniouslabor relations.

6.2 Remuneration, Benefits and Welfare Protection

6.2.1 Salary Management

Goertek practices the culture concept of "We make, we share, we thrive". In 2022, the Companycontinued to emphasize the attraction, motivation and retention of talents, and implemented acompetitive and high-performing compensation incentive policy and benefits care. Throughoptimizing the distribution mechanism, employees could share the growth of corporateprofitability. Despite the external challenges in 2022, the Company still maintained its annualsalary review and adjustment, resulting in continuous and steady growth of employees' incomes.For the core positions, key groups and high-end talents that support the strategic new businessdevelopment of the Company, special salary adjustment policies have been implemented toeffectively achieve precise talent attraction and retention. To further reserve talents for thesustainable and sound development of the Company, the salary level for fresh graduates has beencontinuously and vigorously enhanced, with special retention incentives of the "Talent RetentionAward" granted to top performers, and a "Moat" special incentive provided to core engineersidentified.In addition to providing competitive salary, the Company has an ongoing stock and optionincentive plan for its core employees so that they continuously share the value of the Company.In recent years, the number of stockholders and grants have increased year by year throughcontinuous innovation of equity incentive mechanism. Long-term incentives have become a keyway to attract, retain and motivate employees to create value together. The remuneration of thedirectors of the Company is proposed by the Remuneration and Appraisal Committee of theBoard of Directors. After review and approval by the Board of Directors, it is then submitted tothe Shareholders' Meeting of the Company for approval before implementation. Theremuneration standards of senior management are proposed by the Remuneration and AppraisalCommittee, and implemented after deliberation by the Board of Directors. Allowances forindependent directors are paid on a regular basis.

6.2.2 Benefits Management

Goertek continues to improve employee welfare and is committed to building a welfare systemwith its own characteristics. In addition to providing free accommodation, shuttle buses,customized public transportation, the Company conducts a free physical examination for allemployees once a year; holiday greetings are sent to employees during Mid-Autumn Festivaland Chinese New Year together with gift packages; five new union member benefits, i.e.

marriage, childbirth, hospitalization, expatriation and retirement, are added to give employeesbetter welfare; welfare standards have been set up and operational mechanisms improved,encouraging all employees to join the union, so that they may enjoy the care from our "bigfamily" during major life events such as marriage and childbirth. Up to now, a total of RMB1,745,400 of union benefits was granted, including RMB 397,000 for wedding gifts, RMB558,600 for childbirth gifts, RMB 51,000 for hospitalization condolences, RMB 725,000 forexpatriation benefits and RMB 13,800 for retirement benefits. Commemorations are held foremployees who have joined the Company for 1/3/5 years, and exclusive activities are organizedfor loyal employees serving in the Company for 10 and 20 years. EAP, emergency relief andlegal aid are offered to employees and their families in need. We are always attentive toemployees' demands and seek benefits for them, so as to improve their welfare satisfaction andenhance their sense of belonging to the Company.The Company actively implements the parental leave policy according to the laws andregulations of each region, allowing both spouses to enjoy parental leave each year until theirchild is three years old. This parental leave helps employees balance the family and work, andincreases their happiness and satisfaction accordingly.In addition, the Company has established the matchmaker club by integrating internal andexternal resources, and put in place the management mechanism of all staffs as matchmakers, inorder to help young employees find their Mr./Ms. Right and enhance the influence and socialresponsibility of the Company. In 2022, six internal and external networking activities were held,involving 300+ participants, with 20 pairs of intended matches and four couples entering intomarriage.

To ensure the personal safety of all employees, the Goertek Vietnam Labor Union provides allemployees with activities of getting A1 motorcycle driving license, so as to make it easier forthem to obtain a motorcycle driving license amidst their busy working hours.The Union joins hands with the Legal and Intellectual Property Management Department of theCompany to conduct a monthly Legal Service Open Day, where the Company's professionallawyer team provides free one-on-one legal consultation services. A total of 203 legalconsultations were received in 2022, mainly involving such legal issues as property disputes,civil disputes, traffic accidents and personal loans. These consultations helped employees tosolve their problems. Meanwhile, 11 articles were published on the official account of "Homeof Goertek Staff" to popularize general legal knowledge, showing our staff members how toovercome legal traps in their lives. This has demonstrated our core value of Employee Growth,and strengthened the culture of compliance with and enforcement of laws.

6.3 Employee Development and Communication

6.3.1 Employee Training System

As talent is the core competence of the Company, Goertek attaches great importance to thegrowth and development of its employees, with "employee growth" being included in the keywords of its corporate culture. To further improve the learning and growth system of employeesand expand their career development space, the Company continued promoting the specialproject of human resource reform, the accelerated talent development transformation in 2022,with a focus on business needs and employee growth. We strengthened the training of talents ineach echelon, and built a better platform and provided richer resources for employees' on-the-job learning. The HR Department, in collaboration with each business department, carried outtraining programs of different levels for senior employees, professionals, skilled junioremployees, and new employees, to help them grow quickly and realize personal values andprofessional achievements.Cadre TrainingIn 2022, the Company, guided by the business orientation and five-year training plan for senior-level employees, kept focusing on the existing and backup managers, promoted theimplementation of the basic, mid-level and senior-level leadership system, and strengthened thetraining for such key talents as elite talents, Goertek Wings and core senior employees, so as toforge systematic connections and create a platform integrating cultural identity, understandingof entire business, enhanced management focus and leadership enhancement. Our aim was toenhance our internal talent pool and independent training capabilities, and strengthen thecomprehensive management capabilities of our senior management. Specifically, guided bybusiness needs and youthfulness, the G-Plan training of backup managers was designed tointegrate the selection-cultivation-appointment process with prioritized training via a three-levelreview of the backup pool. The training content focused on basic leadership and businessoperations, with annual updates and innovative training models, so as to build a backup talentpool. To enhance the competency of current managers, we focused on strengthening their keycore competencies, mainly basic leadership, by designing a collaborative mechanism betweenthe Company-level and department-level training, to increase the operational efficiency andbring into play the organizational synergy. We established a fast track for the growth of campus-recruited talents, with focus on the accelerated training and appointment of such groups as elitetalents and Goertek Wings. The full-process talent development project with intensive trainingand empowerment + on-the-job attention was designed to refine their growth paths and expeditedevelopment through empowerment and mechanism support. We organized intensive trainingcamps for key roles: with focus on key roles in R&D, manufacturing, and general management,we optimized their promotion paths and designed training contents tailored to their roles.

Professional and Technical Talent TrainingIn 2022, the professional talent training progressed steadily. For each professional line, wecontinued to advance its talent training in line with its training objectives, and expanded thetalent training efforts on project management and safety management professional lines on thebasis of the five professional lines (finance and economics, quality, lean, supply chain and humanresources) in 2021, further expanding the coverage of our talent training; meanwhile, each BGconducted special talent training projects systematically to address its challenges. To boost thelong-term and stable development and growth of our business in South China, our South Chinasubsidiary focused on the strategic objectives in 2022, guided by the Company's annual operation,and iteratively upgraded its training system, taking talent development as a key part of its talentstrategy, to build an efficient organization and facilitate the implementation of the strategy. Aone-stop organizational culture building workshop was set up through a "10+1" mode toencourage teams to share their thoughts and visions. The special Lean Six Sigma and Lean ValueStream improvement projects enabled the participants to improve their lean thinking and masteryof lean tools and methodologies, so as to better handle practical problems. Professional guidancewas provided to quality-related employees through the special project of ISO 9001 systemimprovement, along with the certification of internal auditors. A platform for internal trainercertification and exchange was established through "Gathering Teachers for ExtensiveEducation", to integrate internal trainer resources. Young high-potentials were selected throughG1000 Young High-Potentials Training Camp, and fostered a pool of resources. The specialproject of English ability improvement was designed to improve the English listening andspeaking skills of designated positions and to increase the competence ratio of positions foroperating client interface. By the end of 2022, the talent training coverage rate has significantlyincreased by 12 percentage points as compared to 2021. Aiming to enhance professionalcapability and activate organizational energy, our HR keeps on building organizationalcapability and promoting the sound operation of the company.To boost the development of technical talents, our South China subsidiary has been activelyapplying for the accreditation of vocational skills and working to set up the Dongguan TechnicalMaster Studio. Eventually, it has successfully obtained the two accreditations, further refined itstraining mechanism for technical talents and optimized their structure, thus enhancing thecomprehensive competence of our technical talents. As for academic advancement, we provideemployees with abundant learning resources and incentives, aiming to motivate every trainee toimprove themselves, and grow together through continuous learning.

Grassroots Employee TrainingWith the increasing attention to manufacturing talents, the Company innovated its talentmanagement mode in 2022, with a series of training and capability enhancement efforts formanufacturing talents, and continuously optimized its talent identification mechanism, so as toalign front-line managers and technical talents with the requirements of the Company'sdevelopment.For front-line managers, we continue to improve their management ability and strengthen theaccreditation of shift leaders' management ability. 1,367 accreditations were carried out in 2022,with a continuously improved talent structure and an increasing percentage of qualified shiftleaders. Special training programs were carried out for high-star shift leaders and mentorempowerment to enhance their capabilities of problem analyzing and solving. Continuingeducation was organized for shift leaders, with innovative training models, enabling 231 shiftleaders to attain higher academic qualifications on the job. For technical talents, we continuedto consolidate their technical expertise, and officially released the management policy forcraftsmen and strengthened their accreditation, with 1,247 new craftsmen accredited in 2022, soas to continuously play the vital role that craftsmen have in leading technical talents. A novelapprenticeship system was continuously carried out to train 360 technicians, empowering themwith fundamental skills. In 2022, we strengthened our internal and external honor system with avariety of honorary titles for technical talents, such as Great Craftsman of Goertek, Gold MedalCraftsman of Goertek, and Artisan of Goertek. 23 technical talents with outstandingcontributions were commended. Meanwhile, we organized the first Skill Competition within theCompany with a view to promoting training through competition and fostering an atmosphereof pursuing excellence among technical talents. We continued to carry out independentevaluation and increased the number of certified technical talents. A total of 1,669 evaluationswere completed in 2022, enhancing the occupational strength of technical talents.New Employee TrainingIn 2022, the Company continued to upgrade its new employee training system, including newemployee training programs for campus recruits (Excellence Engineer Class, Goertek WingsTraining Program, and Wings 2000 Program) and for social recruits (HUG Training), so as tofacilitate their rapid adaptation, comprehensively improve their professional capabilities, andboost their steady growth. The Company focused on the retention and development of theGoertek Wings participants, particularly for the last three sessions. Specifically, the GoertekWings Club was set up to stimulate their initiatives. We vigorously promoted the tutoring systemand topic-based system to facilitate their better adaptation and integration into the Company.Through the establishment of a Company-level project targeting Goertek Wings participants, the

HR department joined hands with business departments to manage the entire process fromprecise recruitment, training and development, to salary incentive, and care and retention,clarifying the career paths and various guarantee policies for the development of Goertek Wings,enhancing their trust in and loyalty to the Company, and propelling common growth of bothemployees and the Company. The Tekin Goertek Excellent Engineer Class was selected by theMinistry of Education as a collaborative education project for university-industry cooperation,pioneering a new model of talent training in universities.

Training on New MediaWith the explosion of self-media platforms such as TikTok and Kuaishou, more and moreemployees are interested in recording their lives online. Embracing the attitude of "openness"and "sharing", the Company invited professional research and operation institutions of newmedia to share their knowledge with over 100 employees interested in short videos, providingall-round training on account creation, script planning, shooting and editing, publishing andoperation. Employees set up accounts following their interests, and regularly share their work,life and talents, receiving a total of over 400,000 reads. This enables more people to know aboutGoertek and showcase the style of our employees.

6.3.2 Annual Training Performance

We are committed to supporting our project operation and development through the building ofour training system. In 2022, the HR focused on the all-round upgrading of our training operationsystem. Regarding the mechanism construction, the training management process mechanismwas restructured comprehensively to achieve the closed-loop management of the whole processfrom training planning, delivery and implementation to resource deployment and resultevaluation, thus gradually perfecting the training system in line with the process. Regardingresource development, we pay more attention to the systematic management of internal andexternal lecturer course resources, and explore diversified curriculum design paths for coursemanagement. For lecturer management, we focus on the whole process of selection, training,employment and retention. A lecturer club was set up to create a more flexible exchange andlearning platform for internal lecturers. In addition, we mobilized lecturers' enthusiasm andenhanced their sense of honor through activities such as the selection and recognition of the mostinfluential lecturers, the lecturer festival and micro-class competition. In 2022, 862 internallecturers were certified, and 505 new courses were developed, laying a solid foundation for theaccumulation of organizational know-how in the Company. In terms of external resources, theCompany attached great importance to introducing new technologies and concepts, and jointlycarried out talent training programs with top universities in China, including Shanghai JiaotongUniversity, Renmin University of China, Shandong University and Ocean University of China.

Meanwhile, Goertek's Craftsman Training Center continued playing its vital role as a talenttraining base, and innovating the new modes of industry-education integration and university-enterprise cooperation, and strengthened collaboration with various institutions and persistenttalent training. In 2022, a total of 595 persons were trained, 78% of whom joined the Company,and 661 new first-line managers were trained. We have built modern industrial colleges withundergraduate colleges and universities to carry out joint training for manufacturing engineers.Among them, the modern industrial college built with Qufu Normal University has beenrecognized as a provincial modern industrial college, training a total of 114 manufacturingengineers. It was selected as a typical case of university-enterprise cooperation for the nationalindustry-education integration in March, 2022 and a national corporate practice base for thevocational education in December. In addition, the introduction of mainstream trainingtechnologies and methods, such as learning map development technology and training & practicetechnology, has secured sufficient resources for employee growth. By 2022, the trainingresources of the Company covered the entire workforce, enabling every employee to haveopportunities and resources for learning and growth, with 31.3 hours of online and offlinetraining per capita.

6.3.3 Pathway for Career Development

Goertek attaches great importance to the common growth and development of its employees, inthe belief that the talents are the primary resources for the Company development. In 2022, theCompany continued strengthening the HR transformation project and further improved its HRprocess and system, focusing on employee growth and capability development. In the course ofthe system construction, we continuously improve career paths for employees, offering them atwo-way choice for their career development and extension through a dual-path careerdevelopment system, i.e. management path and technical path. Moreover, our promotion policyprovided effective guidance for employees' career goals and paths, continued to stimulate theirpotential, drove their initiative to grow, and ultimately assisted them in realizing their personalvalues and career achievements.

We continued improving our qualification system, mainly from two aspects: standarddevelopment and mechanism development, to identify the requirements for qualificationstandards for different positions, and to improve the professionalism and coverage ofqualification standards. By providing standard basis for every link of HR management, weimproved the relevance, accuracy and effectiveness of efforts in recruitment, performance,training, and promotion, enhanced the transparency of policies, and boosted employeesatisfaction.

6.3.4 Life-Work Balance

In order to enrich employees' daily life, cultivate their interests and improve their general quality,we have actively organized a variety of club activities after work to enrich their spirits and morale.These include arts and culture clubs, such as the photography club, the reading club, the singingand dancing club, the fishing club, and the painting and calligraphy club; sports and fitness clubs,such as the basketball club, the soccer club, the badminton club, the table tennis club, thetraveling club, the running club, the roller skating club, the cycling association, and the yogaclub. In 2022, we, by adhering to the concept of a better life enriched by technology, held avariety of cultural activities such as the "Young Singing for The Future" talent contest, the youthnetworking, the Mid-Autumn Festival celebration, and the New Year's Shopping Festival, tocreate a healthy, warm, and harmonious working atmosphere for our employees.

Each park in Weifang is equipped with abundant leisure and entertainment facilities, includingoutdoor soccer fields, basketball courts, running tracks, and fitness areas, as well as staff activitycenters with standardized indoor facilities (table tennis, badminton, billiards, fitness facilities,staff library, dance/yoga rooms, consultation rooms, and club rooms).

In 2022, Goertek Vietnam organized a year-end event themed "Gathering Strength - MakingBreakthroughs", attended by the General Manager and over 1,000 employees, and watched bynearly 15,000 employees online. Individuals and groups with outstanding contributions wereawarded at the event.

6.3.5 Assistance to Employees in Need

In 2022, the Executive Committee of the LaborUnion of our Vietnam subsidiary and theCompany organized condolence activities foremployees in need.

6.3.6 Employee Satisfaction

Goertek particularly values employees' experience. In order to effectively and quickly addressemployees' demands and improve their satisfaction, Goertek examined the end-to-end businessmanagement chain in 2022, with in-depth employee satisfaction surveys in the following fivedimensions: onboarding experience, growth and development, compensation and benefits,organizational climate, and organizational identification, from which key influencing factorswere analyzed and extracted. Each department undertook special improvement projects, bringinginto play the power of culture, mechanism and policies, to form a set of unique human resourcemanagement mechanisms, build a harmonious organizational climate, and enhance the corporateidentification and loyalty of junior managers and technical staff.To carry forward Goertek's culture and care for employees' happiness, we held an event themed"Happy Reunion - Goertek's Warmth" in the park. As a key overseas production base, morerelevant activities were hosted for employees, allowing them to “We make, we share, we thrive”.

In order to have employees fully engage in Goertek's brand development, Goertek continuedimproving its cartoon mascot-Goerboy. Its lively and cute image of the intelligent robotic dolldeepened the emotional bond between Goertek and its employees. With this mascot as thespokesperson, Goertek initiated a call for creative ideas to enhance its brand, and improved itsemployees' professional knowledge reserves through such forms as Goerboy's online videos onscience. A variety of peripheral products were developed modeling the mascot, such as dolls,emoji, notebooks, canvas bags, calendars and sticker sets. Goerboy also appeared in scenariossuch as Goertek Sports Meeting, Goertek mass wedding, Loyalty and Diligence AwardCeremony, Goertek Cultural Street of the Mid-Autumn Festival, and all-media communicationplatforms, enabling employees to feel a real connection with the mascot and experienceGoertek's warm atmosphere, and thus enhancing their sense of belonging.

6.3.7 Complaint Handling

The Labor Union has set up communication and feedback platforms such as the Labor UnionService Hotline, the Labor Union Email, the "Goertek Staff Home" official WeChat account,and satisfaction surveys, so as to hear the demands of employees and solve their pressingconcerns in a timely manner, thus creating a harmonious labor relationship and forming acommunity of shared destiny between employees and the Company. In 2022, the Labor Unionaddressed all the feedback received from employees, promptly and effectively helping themsolve or answer any problems they encountered, so as to enable them to realize the benefits of"turn to the Labor Union whenever in need", and feel the care of the Labor Union.Regarding the handling of complaints, Goertek has set up an internal supervisory organizationwith standardized internal complaint and appeal channels and handling mechanisms, maintainingstrict confidentiality and protection measures for complainants and appellants, and strictlyprohibiting any form of retaliation. Employees can complain about any problems, and theinternal supervisory organization assists employees in solving problems through such ways asvisits, investigations and employee talks.

6.3.8 Employee Turnover Rate

Goertek adheres to the principle of open and equal recruitment, providing equal employment anddevelopment opportunities for every employee. As a people-oriented company, Goertek caresabout employees' experience in employment system, comprehensive income, organizationalclimate and basic administrative security, and continues improving its management mechanismsof compensation and benefits, incentive evaluation, and career development, so as to create afair and diverse working environment and ensure the stability of employees from multipledimensions.

6.4 Occupational Health and Safety

6.4.1 Occupational Health Management

Goertek's safety management centers on various aspects such as employees' occupational healthand safety, and fire safety. Since 2007, the Company has successfully been certified byISO45001 (or OHSAS18001 before 2019) Occupational Health and Safety ManagementSystems, without any serious non-conformity. The Company conducts internal audits on arolling basis every year covering the entire business process of all departments, to continuouslyimprove and optimize the EHS management. The Company has passed the certification reviewof Level 2 Safety Production Standardization since 2015 by further strengthening its safety

production management. The Company has set up the Safety Management Committee with 5secondary groups of safety and environmental protection, public security, health, productionequipment, and special/power equipment, equipped with over 300 full-time and part-time safetymanagement personnel and over 30 registered safety engineers to jointly maintain the safety andstability of its workforce and the surrounding communities.The Company reviews and updates the positions with occupational hazards annually, organizedand completed by the Safety Management Office, and delivers the List of Positions withOccupational Hazards for Medical Examination. If there are new positions with occupationalhazards in any departments outside the period of centralized position review, the correspondingdepartments shall submit the Application Form for Occupational Medical Examination, to beapproved before employees of these positions attend pre-service medical examination and thenstart their jobs. Regional supervisors and team leaders of positions with occupational hazardsshall manage in line with the Company's requirements on occupational health management,providing training, distribution of labor insurance and notification of hazards to personnel inpositions with occupational hazards, and properly keeping records. Employees working inpositions with occupational hazards are required to follow the management rules of occupationalhealth, including but not limited to attending occupational health training, properly wearingcorresponding labor protective equipment, and taking occupational medical examination. Inaddition, they are entitled to express their opinions or suggestions on the occupational healthmanagement of the Company.

6.4.2 Working Environment and Condition Guarantee

The Company provides employees with safe and sound working environment and conditions,with simultaneous planning and implementation of occupational disease prevention facilities andsafety facilities at the beginning of project construction. Production facilities are equipped withsafety guards or interlocking devices, and employees engaging in jobs with occupational hazardsare provided with free up-to-par personal protective equipment (PPE). Meanwhile, medical kitsand first-aiders are available on site to provide emergency rescue for employees.Workshop temperature and humidity shall be within the range of human physiological tolerance;well ventilation shall be maintained in workshops and other workplaces; the process design shallmeet ergonomic requirements; The safety facilities in workplaces meet the requirements ofrelevant national production safety laws, regulations, standards and procedures, and shall be keptcomplete and intact.We provide all necessary protective equipment for our employees to protect their occupationalhealth. According to the DB37/T1922-2011 Standard for Outfit of Labour Protection Articles ofShandong Province, the GB39800.1-2020 Specification for the Provision of Personal ProtectiveEquipment -- Part 1: General Requirement, and the Notice on Management Specification forLabour Protection Articles for Employers, Goertek has formulated the Standard for theAllocation and Distribution of Labour Protection Articles, in combination with our industrycharacteristics. On the basis of this Standard, the departments in need of labor protectiveequipment are required to replace the equipment in a timely manner. These departments arerequired to provide training to their workers on how to wear and use labor protective equipmentand ensure the correct wearing of such equipment before entering the designated areas or beforestarting work. Furthermore, safety managers of these departments perform daily inspections onthe use of labor protective equipment.

For Goertek's subsidiary in South China, the occupational safety efforts focus on thestandardization of safety management, to standardize the organizational structure of safetymanagement, release the standard system of safety management, and establish the safety systemfor the subsidiary in South China, with explicit safety work requirements. Meanwhile, wepromote all members of Safety Committee of our South China subsidiary to sign the work safetyaccountability agreement to ensure accident-free work safety and safeguard the safe workenvironment for our employees. As for firefighting, the staff on duty in the fire control room isincreased, and the emergency firefighting ability and duty capacity of firefighting staff on dutyare improved, the management of fire control room is strengthened. Besides, the management offirefighting hardware and facilities is strengthened, and monthly firefighting maintenance iscarried out, so that the hidden dangers and faults in the firefighting system are comprehensivelyinvestigated and rectification efforts are strictly implemented. As for hidden danger investigationand management, our South China subsidiary carries out a tiered hidden danger inspectionsystem, with on-site inspection by every shift, weekly inspection by the workshop manager,monthly comprehensive inspection by the safety management office and special inspection byour South China subsidiary, which eliminated a total of 439 hidden dangers throughout the year.

6.4.3 Assistance for Employees' Mental Health

To care for employees' mental health and strengthen humanistic care, the Labor Union and theHR Department continued efforts in enhancing employees' happiness in 2022. As of the end of2022, the EAP program had been running for two years, with seven service projects carried outaltogether, namely, psychological counseling (online + offline), training of corporate mentalhealth managers, mental health assessment, training for Goertek Wings new employees, trainingfor senior employees, mental health knowledge popularization, and crisis intervention andmanagement. Looking forward, we will develop EAP-themed training and empowerment fordifferent groups, so that EAP services may benefit more people and maximize their value.

6.4.4 Occupational Safety Guarantee

The Company has organized a variety of safety training and activities to enhance employees'safety awareness and create a safety-oriented culture. Special projects such as hazardouschemical information management, hazardous operation management and limited spacemanagement have been constantly promoted, boosting the quality and efficiency of safetymanagement. In addition to the monthly release of such safety topics as "Chemical Safety","Equipment Safety", "Fire Safety", "Electrical Safety", and "Occupational Health", we conductspecial training for safety managers every year, covering environmental factor identification andevaluation, compliance evaluation, and RBA clause interpretation, among others, to enhance theprofessional level and expertise of safety managers, with satisfactory results as expected. In orderto strengthen employees' safety awareness, and upgrade their safety knowledge and skills, theCompany has been continuously reinforcing its safety-oriented culture for many years. With thetheme of "Eliminating Hidden Dangers and Solidifying Safety Defense" in 2022, the SafetyProduction Month and continuous safety improvement activities were organized.With respect to safety accidents, the Company has formulated the system and process forreporting, investigating and handling EHS accidents according to the Regulations on theReporting, Investigation and Handling of Production Safety Accidents, specifying theresponsibilities of EHS management at all levels. Once an accident occurs, the departmentconcerned is required to report the accident immediately, and the Safety Committee of the

Company reports the accident to local government supervisory authorities within a specifiedperiod of time depending on the accident level, set up an accident investigation team, and issuea report on accident investigation and handling. The Company requires managers at all levels tosign the Safety Responsibility Letter to fully implement the work safety responsibility system.As of the end of the reporting period, 100% of the managers at all levels of the Company hadsigned the Safety Responsibility Letter.

Safety Incident Handling Process

As for the management of work-related injuries, the Company has formulated processes andsystems including the Process for Handling Work-related Accidents of Employees and theOccupational Health Management System, and set up 24-hour medical clinics in each factory toensure that employees in need can receive timely treatment.Responsibilities for Work-related Injury Handling

In addition, the Company organizes monthly safety theme training, safety leadership training,EHS50 training for professional lines and other training activities for the Safety ProductionMonth, Fire Safety Month and Safety Emergency Drills for employees, so as to raise employees'safety awareness and shape a strong safety-oriented culture. Our South China subsidiary alsoorganizes monthly safety management training on topics such as electrical safety, security safety,traffic safety, and food safety, which are available on both online and offline training platforms,to ensure employees' full participation, enable them to gain safety knowledge, enhance theirsafety awareness, and shape a people-oriented safety culture.

AccidentOccurrenceReport of Accident

Department where the

accident occurred

Assessment of Accident

Level

Company Safety Committee

Set up an accident investigation team

Minor Accident: Accident Occurrence BG/BU

General Accidents and Above: Company

Safety Committee

Set up an accident investigation team

Minor Accident: Accident Occurrence BG/BUAccident Investigation and Analysis

Accident occurrence BG/BU submits aninvestigation and analysis report to the

Company Safety Committee for approval

Incident HandlingThe Company Safety Committee givesthe opinions on accident handling

Incident HandlingThe Company Safety Committee givesthe opinions on accident handling

Department for

Accident

Department for AccidentSafety Management DepartmentHuman Resources Department
? Reporting the accidents within

2 hours

investigation and analysis

? Implementation of accident rectification measures? Set up an accident

investigation team

analysis

? Follow up to accident rectification? Acceptance of work-

related accidents

injuries

? Follow up on the handling of work-related injury

In 2022, the government of the province where Goertek Vietnam is located organized a fire drill,in which companies throughout the province were invited to participate. Goertek Vietnam wasawarded a certificate of merit by the Chairman of the Provincial People's Committee for itsexcellent performance in this fire drill.

6.5 Hazard Source Management

The Company actively carries out graded risk control and hidden danger investigation andmanagement. The construction of the double prevention system has been taken as a key measureto prevent and resolve major risks in production, with its concept, method and means beingcontinuously improved and perfected. Through targeted guidance and precise improvement,various types of supervision functions were coordinated to monitor the fulfillment ofresponsibilities and comprehensively improve the prevention and control of production accidents,so as to boost the steady and sustainable production safety of the Company.Following the principle of "moderate size, easy classification, independent functions, convenientmanagement and clear scope", the Company, based on the Hazard Identification and RiskManagement Process and the Operation Guideline for Hazard Identification and Risk Evaluation,use the Operation Activity List and the Equipment and Facilities List to investigate in all aspectsand processes, and reasonably classify the risks in the Company that may lead to accidents,including equipment and facilities (including common facilities shared by various departments),operation behaviors, environmental conditions and construction sites. The Job Hazard Analysis(JHA) + Evaluation Record and the Safety Checklist Analysis (SCL) + Evaluation Record arerespectively used for analysis and evaluation. According to the evaluation results, the level ofrisks is determined, and the Risk Grading and Control List for Operation Activities and RiskGrading and Control List for Equipment and Facilities are developed to clarify the controlmeasures and control levels. As required by the Safety Inspection Management System, theCompany periodically inspect and deal with the risks at sites to continuously improve safety

management by identifying and addressing problems. No material safety accidents have everoccurred in the Company.

7. Public Service Activities

Goertek is building an all-round public service system in all aspects such as public service forall, rural revitalization, education for poverty alleviation, and environmental protection,demonstrating its commitment to social responsibility. Goertek endeavors to build a publicservice platform involving all employees - Goertek Charity Station, expanding publicity effortsto implement a public service incentive mechanism, public service credit rewards, with a viewto encouraging our employees to fulfill their social responsibilities and foster the atmospherewhere everyone commits to sustainable development. Goertek continues to carry out publicservice activities such as the Public Service Day on June 25, Red Vests and Love CharityDonation, and actively promotes education and poverty alleviation activities, such as Goertek -Together Plan and Goertek - Teacher Pioneers Plan.

7.1 Volunteer Activities

From April to May every year, Goertek extensively carries out "Home Cleaning" and"Civilization Advocacy" volunteer activities in each park, with nearly 100 employeesundertaking week-long environmental protection actions in each park. Our employees formed agorgeous scene with their Red Vests by showing great exemplary leadership. The Goertek -Together Plan, a public service project initiated by the Company for children's growth, hasreached more than ten elementary schools and established eight "Goertek Growth Stations",bringing specialized courses on VR, drones, 3D printing and model assembly to the children byour Goertek volunteers, while stimulating their interest in technology and inspiring their growth.Each year, goods from the "Charity Donation" are delivered to over 100 people in need duringour volunteers' visits. Our Vietnamese subsidiary has voluntarily participated in the SpringSeedling Campaign organized by the Vietnamese Embassy, and trained 60 Chinese andVietnamese volunteers, who have completed the site construction, supplies preparation andvaccination of 4,500 compatriots, winning the praise from the Embassy and demonstrating thesocial responsibility and international image of Goertek Vietnam, with positive social impact.

7.2 Branded Public Service Projects

Goertek - Together Plan Series ActivitiesIn May 2022, Goertek launched the Goertek - Together Plan campaign, with highly interactiveand creative H5 in a heart-warming style, calling on readers and employees to promote publicservice activities and fulfill the wishes of children in the Together Plan through enjoyable

interactions. The campaign was promoted widely on our own media and through internalchannels, with over 70,000 contributors.The year 2022 marks the fourth year of the Goertek - Together Plan. We have designed andfinalized a book specially for the plan, the Goertek - Together Plan Extracurricular Book.Focused on the original featured content of the Goertek - Together Plan, the book illustrates thebasic knowledge of VR/AR and drones through graphics and AR interaction to enhancechildren's understanding of the content and their judgment and thinking about technology,sparking their keen interest. As of now, the Goertek - Together Plan has reached out to morethan 2,000 students in the schools such as Anqiu Huiqu School, Anqiu Baoquan School, LinquSongshan Primary School, Linqu Wolong Primary School and Linqu Bayi Hope Primary School.These activities have been well received by local teachers and students and commended by theireducation authorities. The volunteer team of this Plan has grown to more than 300 members.While delivering classes, they act as "growth agents" to keep communication with schools andhelp them solve their problems. Goertek will continue to follow up and ensure the effectivenessof the activities, creating wonderful tech experiences for children together with all walks of life.

Goertek Public Service Day on June 25Goertek is committed to growing together with its employees and society and sharing thewellness and beauty with them in the process of value creation. In June 2022, Goertek launchedthe "Goertek - Running for Love" public service activity, aiming to call on all Goertek employeespassionate about sports and public service to practice a healthy lifestyle with walking andrunning, and dedicate their strength and love to public service. In 25 days, more than 7,000Goertek members took a total of 1.067 billion steps. On June 25, the Company held a donationceremony of RMB 200,000 to establish the Weifang Charity Federation Goertek Charity Fund,dedicated to supporting local children in need. Looking forward, Goertek will carry out a seriesof activities under the theme of "health" and "public service" every year to pass on the power ofpublic service and light up the road of chasing dreams.

8. Future Prospects

Facing the development opportunities of new-generation information technologies, Goertek willcontinue to actively undertake and fulfill its social responsibilities revolving around the ESGstrategic development and the United Nations Sustainable Development Goals (SDGs), to createa better life with technology, and to continuously pursue economic growth while shouldering itssocial responsibilities.

Appendix: GRI Sustainability Reporting Standards Index Table

GRI Disclosure ItemCorresponding Chapter and DescriptionPage

GRI 2: General Disclosures 2021

GRI 2: General Disclosures 20212-1 Organizational details

2-1 Organizational details1. Company Information1

2-2 Entities included in theorganization’s sustainability reporting

2-2 Entities included in the organization’s sustainability reporting1. Company Information1

2-3 Reporting period, frequency andcontact point

2-3 Reporting period, frequency and contact pointAbout This Report2

2-4 Restatements of information

2-4 Restatements of informationNo restatements of information

2-5 External assurance

2-5 External assuranceNot reflected

2-6 Activities, value chain and otherbusiness relationships

2-6 Activities, value chain and other business relationships4. Value Chain18

2-7 Employees

2-7 Employees6. Employee Care28

2-8 Workers who are not employees

2-8 Workers who are not employees6. Employee Care28

2-9 Governance structure andcomposition

2-9 Governance structure and composition2. Corporate Governance5

2-10 Nomination and selection of thehighest governance body

2-10 Nomination and selection of the highest governance body2. Corporate Governance5

2-11 Chair of the highest governancebody

2-11 Chair of the highest governance body2. Corporate Governance5

2-12 Role of the highest governancebody in overseeing the management ofimpacts

2-12 Role of the highest governance body in overseeing the management of impacts2. Corporate Governance5

2-13 Delegation of responsibility formanaging impacts

2-13 Delegation of responsibility for managing impacts2. Corporate Governance5

2-14 Role of the highest governancebody in sustainability reporting

2-14 Role of the highest governance body in sustainability reporting2. Corporate Governance5

2-15 Conflicts of interest

2-15 Conflicts of interest2. Corporate Governance5

2-16 Communication of criticalconcerns

2-16 Communication of critical concerns2. Corporate Governance5

2-17 Collective knowledge of thehighest governance body

2-17 Collective knowledge of the highest governance body2. Corporate Governance5

2-18 Evaluation of the performance ofthe highest governance body

2-18 Evaluation of the performance of the highest governance body2. Corporate Governance5

2-19 Remuneration policies

2-19 Remuneration policies6.2 Remuneration, Benefits and Security31

2-20 Process to determineremuneration

2-20 Process to determine remuneration6.2 Remuneration, Benefits and Security31

2-21 Annual total compensation ratio

2-21 Annual total compensation ratioRefer to the "Notes to the Consolidated Financial Statements" in Section X "Financial Reports" of Goertek's Annual Report 2022.

2-22 Statement on sustainabledevelopment strategy

2-22 Statement on sustainable development strategy2.3 CSR Management Committee5
GRI Disclosure ItemCorresponding Chapter and DescriptionPage

2-23 Policy commitments

2-23 Policy commitments1.4 Responses to the UN Sustainable Development Initiative4

2-24 Embedding policy commitments

2-24 Embedding policy commitments1.4 Responses to the UN Sustainable Development Initiative4

2-25 Processes to remediate negativeimpacts

2-25 Processes to remediate negative impacts2.7 Brand Building and Negative Impact Handling13

2-26 Mechanisms for seeking adviceand raising concerns

2-26 Mechanisms for seeking advice and raising concerns2.6 Collaboration with Concerned Stakeholders11

2-27 Compliance with laws andregulations

2-27 Compliance with laws and regulations2.6 Collaboration with Concerned Stakeholders11

2-28 Membership associations

2-28 Membership associations2.6.2 Association Membership12

2-29 Approach to stakeholderengagement

2-29 Approach to stakeholder engagement2.6.1 Stakeholder Communication Mechanism11

2-30 Collective bargaining agreements

2-30 Collective bargaining agreements2.6 Collaboration with Concerned Stakeholders11

GRI 3: Material Topics 2021

GRI 3: Material Topics 20213-1 Process to determine materialtopics

3-1 Process to determine material topics2.3 CSR Management Committee5

3-2 List of material topics

3-2 List of material topics1. Company Profile 2. Corporate Governance 3. Products and Services 4. Value Chain 5. Green Development 6. Employee Care 7. Social Welfare15 14 18 20 28 45

3-3 Management of material topics

3-3 Management of material topics1. Company Profile 2. Corporate Governance 3. Products and Services 4. Value Chain 5. Green Development 6. Employee Care 7. Social Welfare1 5 14 18 20 28 45

Disclosure of Major Topics

Disclosure of Major TopicsGRI 201: Economic Performance 2016

GRI 201: Economic Performance 2016201-1 Direct economic value generatedand distributed

201-1 Direct economic value generated and distributed2.2 Shareholders' Rights and Responsibilities5

201-2 Financial implications and otherrisks and opportunities due to climatechange

201-2 Financial implications and other risks and opportunities due to climate change5.1 Environmental protection 5.2 Resource Conservation20 25

201-3 Defined benefit plan obligationsand other retirement plans

201-3 Defined benefit plan obligations and other retirement plans6.2 Remuneration, Benefits and Security31

201-4 Financial assistance receivedfrom government

201-4 Financial assistance received from governmentNot reflected

GRI 202: Market Position 2016

GRI Disclosure ItemCorresponding Chapter and DescriptionPage

202-1 Ratios of standard entry levelwage by gender compared to localminimum wage

202-1 Ratios of standard entry level wage by gender compared to local minimum wage6.1 Protection of Employees' Rights and Interests 6.2 Remuneration, Benefits and Security28 31

202-2 Proportion of seniormanagement hired from the localcommunity

202-2 Proportion of senior management hired from the local communityNot reflected

GRI 203: Indirect Economic Impacts 2016

GRI 203: Indirect Economic Impacts 2016203-1 Infrastructure investments andservices supported

203-1 Infrastructure investments and services supported7. Social Welfare45

203-2 Significant indirect economicimpacts

203-2 Significant indirect economic impacts7. Social Welfare45

GRI 204: Procurement Practices 2016

GRI 204: Procurement Practices 2016204-1 Proportion of spending on localsuppliers

204-1 Proportion of spending on local suppliersNot reflected

GRI 205: Anti-corruption 2016

GRI 205: Anti-corruption 2016205-1 Operations assessed for risksrelated to corruption

205-1 Operations assessed for risks related to corruption2.4.2 Anti-Corruption9

205-2 Communication and trainingabout anti-corruption policies andprocedures

205-2 Communication and training about anti-corruption policies and procedures2.4.2 Anti-Corruption9

205-3 Confirmed incidents ofcorruption and actions taken

205-3 Confirmed incidents of corruption and actions taken2.4.2 Anti-Corruption9

GRI 206: Anti-competitive Behavior 2016

GRI 206: Anti-competitive Behavior 2016206-1 Legal actions for anti-competitive behavior, anti-trust, andmonopoly practices

206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices2.4.1 Fair Competition9

GRI 207: Taxation 2019

GRI 207: Taxation 2019207-1 Approach to tax

207-1 Approach to taxRefer to the "Taxation" in the Section X "Financial Reports" of Goertek's Annual Report 2022.
207-2 Tax governance, control, and risk management
207-3 Stakeholder engagement and management of concerns related to tax
207-4 Country-by-country reporting

GRI 301: Materials 2016

GRI 301: Materials 2016301-1 Materials used by weight orvolume

301-1 Materials used by weight or volume5.1.2 Pollution Prevention and Control and Circular Economy22

301-2 Recycled input materials used

301-2 Recycled input materials used5.1.2 Pollution Prevention and Control and Circular Economy22

301-3 Reclaimed products and theirpackaging materials

301-3 Reclaimed products and their packaging materials5.1.2 Pollution Prevention and Control and Circular Economy22

GRI 302: Energy 2016

GRI Disclosure ItemCorresponding Chapter and DescriptionPage

302-1 Energy consumption within theorganization

302-1 Energy consumption within the organization5.1.2 Pollution Prevention and Control and Circular Economy22

302-2 Energy consumption outside ofthe organization

302-2 Energy consumption outside of the organization5.1.2 Pollution Prevention and Control and Circular Economy22

302-3 Energy intensity

302-3 Energy intensity5.1.2 Pollution Prevention and Control and Circular Economy22

302-4 Reduction of energyconsumption

302-4 Reduction of energy consumption5 Green Development20

302-5 Reductions in energyrequirements of products and services

302-5 Reductions in energy requirements of products and services5 Green Development20

GRI 303: Water resources and sewage 2018

GRI 303: Water resources and sewage 2018303-1 Interactions with water as ashared resource

303-1 Interactions with water as a shared resource5.2.3 Water Resource Conservation27

303-2 Management of water discharge-related impacts

303-2 Management of water discharge-related impacts5.2.3 Water Resource Conservation27

303-3 Water withdrawal

303-3 Water withdrawal5.2.3 Water Resource Conservation27

303-4 Water discharge

303-4 Water discharge5.2.3 Water Resource Conservation27

303-5 Water consumption

303-5 Water consumption5.2.3 Water Resource Conservation27

GRI 304: Biodiversity 2016

GRI 304: Biodiversity 2016304-1 Operational sites owned, leased,managed in, or adjacent to, protectedareas and areas of high biodiversityvalue outside protected areas

304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas5.1.2 Pollution Prevention and Control and Circular Economy22

304-2 Significant impacts of activities,products and services on biodiversity

304-2 Significant impacts of activities, products and services on biodiversity5.1.2 Pollution Prevention and Control and Circular Economy22

304-3 Habitats protected or restored

304-3 Habitats protected or restored5.1.2 Pollution Prevention and Control and Circular Economy22

304-4 IUCN Red List species andnational conservation list species withhabitats in areas affected by operations

304-4 IUCN Red List species and national conservation list species with habitats in areas affected by operations5.1.2 Pollution Prevention and Control and Circular Economy22

GRI 305: Emissions 2016

GRI 305: Emissions 2016305-1 Direct (Scope 1) GHG emissions

305-1 Direct (Scope 1) GHG emissions5.1.2 Pollution Prevention and Control and Circular Economy 5.2.2 Energy Conservation22 26

305-2 Energy indirect (Scope 2) GHGemissions

305-2 Energy indirect (Scope 2) GHG emissions5.1.2 Pollution Prevention and Control and Circular Economy 5.2.2 Energy Conservation22 26

305-3 Other indirect (Scope 3) GHGemissions

305-3 Other indirect (Scope 3) GHG emissions5.1.2 Pollution Prevention and Control and Circular Economy 5.2.2 Energy Conservation22 26

305-4 GHG emissions intensity

305-4 GHG emissions intensity5.1.2 Pollution Prevention and Control and Circular Economy 5.2.2 Energy Conservation22 26
GRI Disclosure ItemCorresponding Chapter and DescriptionPage

305-5 Reduction of GHG emissions

305-5 Reduction of GHG emissions5.1.2 Pollution Prevention and Control and Circular Economy 5.2.2 Energy Conservation22 26

305-6 Emissions of ozone-depletingsubstances (ODS)

305-6 Emissions of ozone-depleting substances (ODS)5.1.2 Pollution Prevention and Control and Circular Economy 5.2.2 Energy Conservation22 26

305-7 Nitrogen oxides (NOx), sulfuroxides (SOx), and other significant airemissions

305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions5.1.2 Pollution Prevention and Control and Circular Economy 5.2.2 Energy Conservation22 26

GRI 306: Waste 2020

GRI 306: Waste 2020306-1 Waste generation and significantwaste-related impacts

306-1 Waste generation and significant waste-related impacts5.1.2 Pollution Prevention and Control and Circular Economy22

306-2 Management of significantwaste-related impacts

306-2 Management of significant waste-related impacts5.1.2 Pollution Prevention and Control and Circular Economy22

306-3 Waste generated

306-3 Waste generated5.1.2 Pollution Prevention and Control and Circular Economy22

306-4 Waste diverted from disposal

306-4 Waste diverted from disposal5.1.2 Pollution Prevention and Control and Circular Economy22

306-5 Waste directed to disposal

306-5 Waste directed to disposal5.1.2 Pollution Prevention and Control and Circular Economy22

GRI 308: Supplier Environmental Assessment 2016

GRI 308: Supplier Environmental Assessment 2016308-1 New suppliers that werescreened using environmental criteria

308-1 New suppliers that were screened using environmental criteria4 Value Chain18

308-2 Negative environmental impactsin the supply chain and actions taken

308-2 Negative environmental impacts in the supply chain and actions taken4 Value Chain18

GRI 401: Employment 2016

GRI 401: Employment 2016401-1 New employee hires andemployee turnover

401-1 New employee hires and employee turnover6.1 Protection of Employees' Rights and Interests28

401-2 Benefits provided to full-timeemployees that are not provided totemporary or part-time employees

401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees6.1 Protection of Employees' Rights and Interests 6.2 Remuneration, Benefits and Security28 31

401-3 Parental leave

401-3 Parental leave6.2.2 Benefits Management31

GRI 402: Labor/Management Relations 2016

GRI 402: Labor/Management Relations 2016402-1 Minimum notice periodsregarding operational changes

402-1 Minimum notice periods regarding operational changes6.1 Protection of Employees' Rights and Interests28

GRI 403: Occupational Health and Safety 2018

GRI 403: Occupational Health and Safety 2018403-1 Occupational health and safetymanagement system

403-1 Occupational health and safety management system6.4 Occupational Health and Safety40

403-2 Hazard identification, riskassessment, and incident investigation

403-2 Hazard identification, risk assessment, and incident investigation6.4 Occupational Health and Safety40

403-3 Occupational health services

403-3 Occupational health services6.4 Occupational Health and Safety40

403-4 Worker participation,consultation, and communication on

403-4 Worker participation, consultation, and communication on6.4 Occupational Health and Safety40
GRI Disclosure ItemCorresponding Chapter and DescriptionPage

occupational health and safety

occupational health and safety403-5 Worker training on occupationalhealth and safety

403-5 Worker training on occupational health and safety6.4 Occupational Health and Safety40

403-6 Promotion of worker health

403-6 Promotion of worker health6.4 Occupational Health and Safety40

403-7 Prevention and mitigation ofoccupational health and safety impactsdirectly linked by businessrelationships

403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships6.4 Occupational Health and Safety40

403-8 Workers covered by anoccupational health and safetymanagement system

403-8 Workers covered by an occupational health and safety management system6.4 Occupational Health and Safety40

403-9 Work-related injuries

403-9 Work-related injuries6.4 Occupational Health and Safety40

403-10 Work-related ill health

403-10 Work-related ill health6.4 Occupational Health and Safety40

GRI 404: Training and Education 2016

GRI 404: Training and Education 2016404-1 Average hours of training peryear per employee

404-1 Average hours of training per year per employee6.3 Employee Development and Communication32

404-2 Programs for upgradingemployee skills and transitionassistance programs

404-2 Programs for upgrading employee skills and transition assistance programs6.3 Employee Development and Communication32

404-3 Percentage of employeesreceiving regular performance andcareer development reviews

404-3 Percentage of employees receiving regular performance and career development reviews6.3 Employee Development and Communication32

GRI 405: Diversity and Equal Opportunity 2016

GRI 405: Diversity and Equal Opportunity 2016405-1 Diversity of governance bodiesand employees

405-1 Diversity of governance bodies and employees2. Corporate Governance 6.1.6 Diversity and Equal Opportunity5 30

405-2 Ratio of basic salary andremuneration of women to men

405-2 Ratio of basic salary and remuneration of women to men6.1 Protection of Employees' Rights and Interests28

GRI 406: Non-discrimination 2016

GRI 406: Non-discrimination 2016406-1 Incidents of discrimination andcorrective actions taken

406-1 Incidents of discrimination and corrective actions taken6.1.3 Anti-Forced Labor, Harassment and Abuse30

GRI 407: Freedom of Association and Collective Bargaining 2016

GRI 407: Freedom of Association and Collective Bargaining 2016407-1 Operations and suppliers inwhich the right to freedom ofassociation and collective bargainingmay be at risk

407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk6.3 Employee Development and Communication32

GRI 408: Child Labor 2016

GRI 408: Child Labor 2016408-1 Operations and suppliers atsignificant risk for incidents of childlabor

408-1 Operations and suppliers at significant risk for incidents of child labor6.1.4 Prohibition of Child Labor30

GRI 409: Forced or Compulsory Labor 2016

GRI 409: Forced or Compulsory Labor 2016409-1 Operations and suppliers atsignificant risk for incidents of forcedor compulsory labor

409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor6.1 Protection of Employees' Rights and Interests28
GRI Disclosure ItemCorresponding Chapter and DescriptionPage

GRI 410: Security Practices 2016

GRI 410: Security Practices 2016410-1 Security personnel trained inhuman rights policies or procedures

410-1 Security personnel trained in human rights policies or procedures6.1 Protection of Employees' Rights and Interests28

GRI 411: Rights of Indigenous Peoples 2016

GRI 411: Rights of Indigenous Peoples 2016411-1 Incidents of violations involvingrights of indigenous peoples

411-1 Incidents of violations involving rights of indigenous peoplesNo such cases occurred during the reporting period

GRI 413: Local Communities 2016

GRI 413: Local Communities 2016413-1 Operations with localcommunity engagement, impactassessments, and developmentprograms

413-1 Operations with local community engagement, impact assessments, and development programs7. Social Welfare45

413-2 Operations with significantactual and potential negative impactson local communities

413-2 Operations with significant actual and potential negative impacts on local communities7. Social Welfare45

GRI 414: Supplier Social Assessment 2016

GRI 414: Supplier Social Assessment 2016414-1 New suppliers that werescreened using social criteria

414-1 New suppliers that were screened using social criteria4 Value Chain18

414-2 Negative social impacts in thesupply chain and actions taken

414-2 Negative social impacts in the supply chain and actions taken4 Value Chain18

GRI 415: Public Policy 2016

GRI 415: Public Policy 2016415-1 Political contributions

415-1 Political contributionsNo such cases occurred during the reporting period

GRI 416: Customer Health and Safety 2016

GRI 416: Customer Health and Safety 2016416-1 Assessment of the health andsafety impacts of product and servicecategories

416-1 Assessment of the health and safety impacts of product and service categories3. Products and Services 5.2.1 Green Design14 25

416-2 Incidents of non-complianceconcerning the health and safetyimpacts of products and services

416-2 Incidents of non-compliance concerning the health and safety impacts of products and services3. Products and Services 5.2.1 Green Design14 25

GRI 417: Marketing and Labeling 2016

GRI 417: Marketing and Labeling 2016417-1 Requirements for product andservice information and labeling

417-1 Requirements for product and service information and labeling3. Products and Services 5.2.1 Green Design14 25

417-2 Incidents of non-complianceconcerning product and serviceinformation and labeling

417-2 Incidents of non-compliance concerning product and service information and labelingNo such cases occurred during the reporting period

417-3 Incidents of non-complianceconcerning marketing communications

417-3 Incidents of non-compliance concerning marketing communicationsNo such cases occurred during the reporting period

GRI 418: Customer Privacy 2016

GRI 418: Customer Privacy 2016418-1 Substantiated complaintsconcerning breaches of customerprivacy and losses of customer data

418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data3. Products and Services14

Board of Directors of Goertek Inc.

April 17, 2023


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