2024
SUSTAINABILITY REPORT
Committed to AdvancingCutting-Edge Technology,Fulfilling the Ambitions ofOur Global Partners
CONTENTS
About this ReportChairman's StatementAbout Luxshare Precision
Awards and HonorsESG HighlightsOverview of SystemCertifications
Assurance ReportKey Performance DataIndexes of Standards
Appendix
Implementing ESGGovernanceStabilizing EnterpriseOperationsOperating an Honest andTrustworthy EnterpriseEnsuring InformationSecurity
Collaborative ValueCreationRevitalizing Rural AreasPooling Compassion
Attracting Excellent TalentProtecting EmployeeRightsSupport for Training andDevelopmentEnhancing Compensationand BenefitsEnsuring OccupationalHealth and Safety
Pioneering Innovationand R&DCultivating GreenProductsStrengthening ClientTrustAdvancing IntelligentManufacturing
Responding to ClimateChangeContinuous Low-CarbonOperationsOptimizing Energy UseImplementing GreenManufacturing
SustainableDevelopment,Enhancing CorporateGovernance
Green Transition,FulfillingEnvironmentalResponsibility
EmployeesEmpowerment,Building a Platformfor Dreams
CloseCollaboration,Contributing to aHarmonious Society
ContinuousInnovation,Forging ExcellentProducts
Committed to Advancing Cutting-Edge Technology,Fulfilling the Ambitions of Our Global Partners
Luxshare Precision Industry Company Limited releases a sustainability report annually, which focuseson the disclosure of the concepts, goals, work progress and future plans of the Company and itssubsidiaries in terms of sustainable development. This report is the sixth consecutive sustainabilityreport released by the Company.
Luxshare Precision has prepared this Report based on the Self-Regulato Guidelines No. 17 forCompanies Listed on Shenzhen Stock Exchange—Sustainability Repo (For Trial Implementation)(Guideline), in accordance with the requirements of Global Reporting Initiative (GRI Standards) issuedby the Global Sustainability Standards Board (GSSB),and ESG topics and relevant requirements ofEnvironment, Social and Governance (ESG) Ratings of capital markets including the Morgan StanleyCapital International's ESG rating (MSCI ESG Rating). This Report was prepared by identifying theimportant stakeholders, analyzing and arranging material topics, defining the contents of this Report,and summarizing, sorting and reviewing the relevant information.
Introduction
All data used in this Report originates from Luxshare Precision Industry Company Limited and itssubsidiaries.Data Source
Preparation Basis
For the convenience of expression and reading, "Luxshare Precision", "We" and "us", "the Company" inthis Report refer to Luxshare Precision Industry Company Limited. Unless otherwise specified, theterms and abbreviations of subsidiaries used in this Report have the same meanings as those definedin the Company's 2024 Annual Repo.
Unless otherwise specified, the business scope and the reporting entities of the policies, statementsand materials in this Report are the same as those of the Company's 2024 Annual Repo. TheReporting Period is from January 1, 2024 to December 31, 2024.
Definition of Terms
Reporting Entities and Period
The Board of Directors is responsible for the truthfulness, accuracy and completeness of the Report.Luxshare Precision has commissioned T?V NORD (Hangzhou) Co., Ltd. to conduct an externalassurance according to AA1000 Assurance Standard. The assurance statement is provided on page 83of the Report.
Reliability Statement and Assurance
This Report was approved by the Board of Directors for release on April 25, 2025.
Confirmation and Approval
Luxshare Precision Sustainability Report is released annually at the same time as the Annual Report.The Simplified Chinese and the English versions of the Report can be accessed on the followingwebsite. In case of any inconsistency between the versions, the simplified Chinese version shallprevail.
Availability of this Report
https://www.luxshare-ict.com/en/sustainability/repos-and-polices.html
About this Report
AppendixSustainable Development,Enhancing Corporate Governance
Green Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious Society
About this
Report
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report02
Dear Partners,
While the world is facing global challenges and industry revolutions unseen in acentury, Luxshare Precision has remained steadfast in our mission: "Committedto advancing cutting-edge technology, fulfilling the ambitions of our globalpartners". Over the past year, we have demonstrated relentless drive in forgingahead with global partners, continuously creating value through innovativelyintegrating ESG into business model, and exemplifying the trajectory ofhigh-quality development in Chinese intelligent manufacturing through concreteactions.
At this critical juncture of our 20th anniversary, we continue to refine thegovernance framework of "the shareholders' meeting, the board of directors, theboard of supervisors, and the senior management", establishing a penetrative riskmanagement system. Through systematic upgrades on internal policies andstrengthened internal oversight mechanisms, we ensure both the preciseexecutions of the strategic decisions and operational compliance to maintainglobal competency.
Facing escalating extreme weather threats, we launched a 1.5℃-aligned strategywith low-carbon transformation actions across our value chain as a pioneer. Beyondmaintaining global leadership level of CDP Climate Change assessmemt for twoconsecutive years, we embedded green manufacturing DNA into every productthrough constructions of green factories and garden factories as well asimplementations of sustainable water stewardship.
Driven by smart manufacturing and clean technologies, we enable greenproduction of clients' core products via integrated energy data management andprocess optimization. Our high-efficiency AI data center solutions empowerglobal partners to build green computing infrastructure. This moat of proprietaryinnovation cements our role as an indispensable strategic ally.
"Feats are accomplished by capable people, undertakings proceed because ofcapable people". We empower every employee through diverse careerdevelopment paths, customized training programs, and performance-drivenincentives, fostering a trusted global team where each member thrives amidindustrial evolution.
Guided by high standards, whole chain collaboration, and digital management,we embed responsibility across our ecosystem. From building a green andresponsible supply chain with partners to advancing rural education support,community revitalization, and public welfare initiatives, we prove that acompany’s legacy is measured by the depth and breadth of its accountability.Building a century-long enterprise, practicing evergreen values. As we stand atthis new 20-year milestone, Luxshare Precision will continue to wield technologyas our pen and responsibility as our ink, collaborating with global partners tocompose a new chapter in the high-quality development of intelligentmanufacturing.
Wang LaichunChairman of Luxshare Precision
Chairman's Statement
Innovation Breakthroughs: Co-shaping theFuture
Low-Carbon Transformation: EmbracingEra Responsibilities
Governance Excellence: Fortifying theFoundation
Nurturing Talent: Unleashing OrganizationalPotential
Purpose-Driven Action: Charting a ResponsibleFuture
Sustainable Development,Enhancing Corporate Governance
Luxshare Precision 2024 Sustainability Report
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout thisReport
Chairman'sStatement
About LuxsharePrecision
Company ProfileIndustry CooperationAbout Luxshare Precision
Luxshare Precision Industry Company Limited was established on May 24, 2004, and was successfully listed on theShenzhen Stock Exchange on September 15, 2010 (stock code: 002475). Headquartered in Dongguan City, GuangdongProvince, China, the Company has over 100 subsidiaries, mainly located in Guangdong, Jiangxi, Jiangsu, Zhejiang, Anhuiand other regions of China, as well as in countries such as Vietnam and Mexico. Additionally, Luxshare Precision hasestablished R&D centers in Shanghai, Dongguan, Shenzhen, Xi'an, and the United States, etc.After two decades of accumulation and development, in 2024, Luxshare Precision unveiled its corporate mission:
"Committed to advancing cutting-edge technology, fulfilling the ambitions of our global partners". The Company iscommitted to fostering continuous innovations to build a collaborative ecosystem with global partners, driving industryprogress and sustainable social development. By seizing the vast opportunities presented by clean technology servicesand products, we aim to create shared value for society. Through internal growth and vertical integration, the Companyhas established a diversified and vertically integrated business structure, offering a comprehensive product supplysystem that integrates development, sales, on-site technical support, and smart manufacturing. Our products arewidely used in consumer electronics, automotive, and communication sectors. For more information about theCompany's industry and business, please refer to Section III of the 2024 Annual Repo.
As a leading enterprise in the electronic components industry, Luxshare Precision actively engages in
industry development and currently maintains membership of over 70 industry associations. By deeplyparticipating in the formulation of industry standards, sharing cutting-edge technological achievements, andorganizing professional seminars, Luxshare Precision has effectively driven the standardization processwithin the sector.
Corporate Culture 2.0 Poster
Industry Association Participation
This section only displays some of the industry associations that Luxshare Precision is involved in.
Sustainable Development,Enhancing Corporate Governance
Luxshare Precision 2024 Sustainability Report
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious SocietyAbout this
Report
Chairman'sStatement
About LuxsharePrecision
20042010
2011
2012
2013
2015
2016
20172019
2021
2022
2024
Corporate Development History
Acquired SukKunststofftechnik GmbH(Germany)
Acquired controllingshareholding ofSpeedTech Corp.
Acquired LantoElectronic LimitedAcquired ASAPTechnology(Jiangxi) Co., Ltd.
Acquired controllingshareholding of ShenzhenKertong Industrial Co., Ltd.
Acquired Fujian JK WiringSystems Co., Ltd.Acquired Huzhou JiudingElectronic Co., Ltd.
Established Luxshare-ICT(Vietnam) Limited
Acquired controllingshareholding of MerryElectronics (Suzhou) Co., Ltd.
Established Luxshare iTech(Zhejiang) Co., LTD.Established Luxshare-ICT(Nghe An) LimitedEstablished Luxshare IntelligentManufacture Technology(Changshu) Co., Ltd.
Acquired controllingshareholding of MerryElectronics (Huizhou)Co., Ltd.
Acquired controllingshareholding of LuxcasePrecision Technology(Yancheng) Co., Ltd.
Acquired controlling shareholdingof TIME Interconnect TechnologyLimited
Acquired QorvoSemiconductor(Hong Kong)Limited
Luxshare Precision wassuccessfully listed on theShenzhen Stock Exchange(Stock Code: 002475)
Luxshare Precision IndustryCo., Ltd. was officiallyfounded
Sustainable Development,Enhancing Corporate Governance
Luxshare Precision 2024 Sustainability Report
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious SocietyAbout thisReport
Chairman'sStatement
About LuxsharePrecision
Awards and Honors
"BB" Level
Morgan Stanley Capital International (MSCI) Index
2024 China ESG 50 List
Forbes China
Bronze Medal
EcoVadis Certification
Ranked 2nd in Industry inCATIRanked 5th in Industry inCITI
The Institute of Public &Environmental Affairs (IPE)
2024 Best Practice Cases ofSustainable Development ofListed CompaniesChina Association for PublicCompanies
2024 Fortune ChinaESG Impact ListFoune China
Listed in "Pioneer 100 ChinaESG Listed Companies(2024)"China Media Group
Excellent Case of ESG for"Xinhua Credit Jinlan Cup"China Economic InformationService
"A" Rating in Climate Change "A-" Rating in Water Security
Carbon Disclosure Project (CDP)
Sustainable Development,Enhancing Corporate GovernanceChairman'sStatement
Close Collaboration, Contributingto a Harmonious Society
Luxshare Precision 2024 Sustainability Report
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for DreamsAbout thisReport
About LuxsharePrecision
Awards and Honors (Continued)
2024 "Goldenkey Excellent SDG Solution"
China Sustainability Tribune
2024 IPC China ESG Benchmarking Enterprise Award
Association Connecting Electronics Industries (IPC)
The 2024 Reputation List ofListed Companies - MostSocially Responsible Company
National Business Daily
2024 CLS "Zhiyuan Award"ESG Pioneer AwardCLS.CNGoldenBee 2024 Sustainability Reports Honor Roll of
Listed Companies in Greater Bay Area
Golden Bee Think Tank
2024 Corporate ESG"Golden Awards"Best Environmental (E)Responsibility AwardSina Finance
2024 Diversity Supplier ofthe YearMSD China
2024 China Corporate ESG100 IndexPeople's Daily Overseas OnlineAll-China EnvironmentFederation
China Corporate SocialResponsibility Award -Outstanding ResponsibleEnterprise (2023)
Southern Weekly
Sustainable Development,Enhancing Corporate GovernanceChairman'sStatement
Close Collaboration, Contributing
to a Harmonious Society
Luxshare Precision 2024 Sustainability Report
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for DreamsAbout thisReport
About LuxsharePrecision
2024 greenhouse gas emission data has not been verified and the target base year is 2022. Scope 2 emissions were calculated on a market-based.
Sustainable Development,Enhancing Corporate Governance
Green Transition,Fulfilling Environmental ResponsibilitySpecial communicationswith ESG investors26 times
Compared to the base year
, theabsolute Scope 1 and 2 emissionsreduced by
Number of subsidiaries certified byAWS International Water StewardshipStandard
Number of subsidiaries certified byISO 14001
Overall installed capacity ofrooftop solar PV powergeneration150 MW
Utilization rate of clean energyup to nearly
71 %
Energy saved
209,435 MWh
Accumulative number of greenfactories
Accumulative number of subsidiariescertified by UL 2799 Zero Waste toLandfill
Number of Information leakage incidents
Number of internal auditscompleted
25 times
Number of energy efficiencyretrofit projects
Number of large-scale investorengagement activities5 events
Number of small-scalecommunications by phone,emails, etc.
417 times
Signing rate of the Employee's Letter ofIntegrity Commitment and Employee'sLetter of Commitment of Code of Conduct100%
Handling rate of business ethicsrelated complaints100%
Signing rate of Letter of IntegrityCommitment for Supplier100%
51%
Compared to the base year, Scope3 GHG emissions per CNY of valueadded reduced by22%
ESG Highlights
Sustainable Development,Enhancing Corporate GovernanceChairman'sStatement
Close Collaboration, Contributing
to a Harmonious Society
Luxshare Precision 2024 Sustainability Report
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for DreamsAbout this
Report
About LuxsharePrecision
ESG Highlights (Continued)
Investment in clean technology R&Dover 400 million RMB
Number of high-quality patentsapplication
Accumulative patents granted7,164
Number of new patents granted relatedto clean technology
Number of cases of trademarkinvalidation and opposition handled
Number of requests andsuggestions from theemployees31,410
The case closure rate
Total expenditure on employeetraining programs
10.71 million RMB
Average training time per personNearly 21 hours
Coverage of employeetrainings
Year-on-year reduction in work-relatedinjuries
Employee coverage rate by theoperations with OccupationalHealth and Safety System
Number of subsidiaries certified byISO 45001
Number of external recognitionsas employer of choice
Number of fresh graduate employees1,648
Number of new prohibited andrestricted substances
Number of subsidiariescertified by IATF 16929
Number of subsidiariescertified by ISO 13485
ISO
100%
100%
100%
24%
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Sustainable Development,Enhancing Corporate GovernanceChairman'sStatement
Close Collaboration, Contributingto a Harmonious Society
Luxshare Precision 2024 Sustainability Report
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for DreamsAbout this
Report
About Luxshare
Precision
3TG：Tantalum, tin, tungsten, and gold.
RMAP：Responsible mineral assurance process
SORs：Smelters or refineries.
Accumulative number of suppliersattendedOver 800
Number of suppliersummits
CSR
audits ratio for new suppliers
Number of suppliers assisted inremoving records of environmentalviolations
Proportion of 3TG
materials involvedin all products sourced from RMAP
conformant SORs
Proportion of 3TG materialsinvolved in all products traceableto country of origin
The total investment in publicwelfare and charity undertakings 3.41 million RMBThe total investment in ruralrevitalization
10.35 million RMB
Facilitated suppliers' energyconservation of
33,013 MWh
100%
100%
100%
Close Collaboration,Contributing to a Harmonious Society
ESG Highlights (Continued)
GovernanceEnvironmentalSocial
Overview of System Certifications
CSR：Corporate social responsibility.
Including Certificates of Diverse Supplier in two dimensions: bona fide supplier and ethnic minority regions.
ISO 27001 Information Security Management SystemsGB/T 23007 Integration of Informatization and Industrialization Management SystemsISO 22301 Business Continuity Management SystemsGB/T 29490 Enterprise Intellectual Property Compliance Management SystemCustoms-Trade Partnership Against Terrorism (CTPAT)China Authorized Economic Operator CertificateISO 14001 Environmental Management SystemsISO 50001 Energy Management SystemsPAS 2060 Carbon NeutralityISO 14064 Greenhouse Gas Verification StatementISO 14067 Greenhouse Gases – Carbon Footprint of ProductsUL 2799 Zero Waste to Landfill ValidationQC 080000 Hazardous Substance Process Management SystemThe AWS International Water Stewardship StandardSony Green PartnerISO 9001 Quality Management SystemsISO 13485 Medical devices — Quality Management SystemsIATF 16949 Automotive Quality Management SystemTL 9000 The Telecom Quality Management SystemISO 45001 Occupational Health and Safety Management SystemsMSD China Certificate of Diverse Supplier
ISO 28000 Security Management Systems (Supply Chain)SA 8000 Social Accountability CertificationResponsible Business Alliance Validated Assessment Program CertificationISO 17025 General Requirements for the Competence of Testing and Calibration Laboratories
Sustainable Development,Enhancing Corporate GovernanceChairman'sStatement
Close Collaboration, Contributingto a Harmonious Society
Luxshare Precision 2024 Sustainability Report
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for DreamsAbout this
Report
About LuxsharePrecision
Corporate Governance and Risk ControlInformation Security and Privacy ProtectionBusiness Ethics
At Luxshare Precision, sustainability is deeply embedded within our overarchingstrategy. We continuously strengthen our ESG management framework andpractices to ensure alignment with the United Nations Sustainable DevelopmentGoals (SDGs). While maintaining business continuity, we actively create value forall stakeholders. By upholding rigorous ethical standards and complianceprotocols, we enhance a culture of integrity, keep information security, andensure the confidentiality and privacy of both clients and employees aresafeguarded against any breaches.
Sustainable Development,Enhancing Corporate Governance
The Company has developed a comprehensive sustainability management framework, utilizing both internal and external resources to strengthen ESG management capabilities at all levels. Through conducting effective stakeholdercommunications, the Company proactively identifies, assesses, and manages ESG-related risks and opportunities while deeply integrating ESG topics into each phase of the value chain.Implementing ESG Governance
ESG Governance Structure
Sustainability Governance Structure
Strategy Committee
Board of Directors
SustainableDevelopment Center
Human Resources
Department
Information SecurityManagement Department
Intellectual PropertyManagement Department
Supply ChainManagement Department
Decision-making levelPlanning levelExecution level
The BoardSecretary Office
Disciplinary CommitteeEHS Committee
Central FunctionalDepartment
SubsidiaryESG Working Group
Other Functional andService Departments
The Company has implemented a three-level sustainability governance structure featuring "Decision-Making - Planning - Execution", comprising of the Board of Directors and Strategy Committee, Sustainable Development Center and
Sustainability Execution team. The framework ensures that sustainability impacts, risks, and opportunities are seamlessly integrated into the Company's strategic execution, key decision-making processes, risk management practices, anddaily operations.As the highest decision-making body, the Board of Directors listens to the ESG-related strategies which are proposed by Sustainable Development Center and reviewed by the Strategy Committee, reviews the Company's ESG goals andprogress, deliberates and approves the due dilligence results of ESG material topics, and listens to the feedback concerning stakeholders' interests, through regular meetings and irregular special reports. For a detailed overview of the ESGmanagement responsibilities at various levels within Luxshare Precision, please refer to theCompany's ocial website.
Sustainable Development,Enhancing Corporate GovernanceChairman'sStatement
Close Collaboration, Contributingto a Harmonious Society
Luxshare Precision 2024 Sustainability Report
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for DreamsAbout thisReport
About LuxsharePrecision
Aligned with the principles of "Scientific Governance, Green and Low Carbon, Harmony and Health, andResponsible Procurement", the Company has embedded ESG principles throughout the internal management anddaily operations. These efforts drive the Company towards sustainable growth while systematically advancing theintegration of sustainable practices across the Company.
ESG Management Strategy
ESG Management Strategy
Luxshare Precision strives to "Cover All Employees and Empower Precisely" by focusing on strengthening the
ESG knowledge framework. The Company offers tailored learning resources to employees across different rolesand levels, aiming to systematically integrate ESG principles into the Company's governance practices, therebybuilding sustainable competitive advantages.
ESG Capabilities Enhancement
Construction of Knowledge Framework
Targeting senior decision-makers, including directors, supervisors, and senior management, our effortsconcentrate on ESG policy trends, the evolution of domestic and international standards, and theformulation of corporate ESG strategies. By conducting specialized briefings, organizing experts trainingsessions, and facilitating internal discussions, we aim to strengthen top-level design competencies
Decision-Making Level
We provide targeted training programs tailored to core department, including Business, Procurement, R&D,and Quality Assurance teams. The curriculum focuses on ESG practices, covering foundational ESGconcepts and principles, existing management practices and planning. Through regular knowledge-sharings,we keep teams informed about cutting-edge industry developments and leading practices, ensuringeffective ESG integration capacities across both operational and business functions
Our iSchool platform provides comprehensive ESG trainings to all employees, utilizing standardizededucational materials and interactive quizzes. The curriculum encompasses four modules, includingfundamental ESG concepts, environmental and social topics'management, and supply chain management.Additionally, we distribute regular micro ESG educational classes through internal platforms to facilitateongoing knowledge sharing and propagate ESG principles
Continuously improve corporate governancestructure, enhance corporate governance, followthe requirements of business ethics, build trustwith all stakeholders, boost the long-term valueof the Company, and pursue sustainablecorporate development and business model
Scientific Governance
Sustainable Development,Enhancing Corporate Governance
ESG Practices
ESG PracticesESG Practices
Implement the national green development strategy,advance green and low-carbon transformation,reduce waste and increase efficiency, promotegreen and eco-friendly products and services, helpachieve scientific carbon goals, seize cleantechnology opportunities, and drive green andlow-carbon development of the whole industry andsociety
Green and Low Carbon
ESG Practices
ESG Practices
Green Transition, FulfillingEnvironmental Responsible
Maintain a benign relationship with suppliers ofmutual benefit, win-win cooperation andcommon development. Increase R&D investmentto strengthen independent innovation. Establish asound supply chain social responsibility managementsystem, build a green and responsible value chain,and jointly work for a sustainable future
Responsible Procurement
Continuous Innovation,Forging Excellent ProductsClose collaboration, Contributingto a Harmonious Society
Build a harmonious workplace, respect the rightsand interests of employees in each operation site,establish smooth communication channels,continuously improve the democratic managementsystem, provide diversified development pathwaysand a sound occupational health managementsystem for employees, and create a harmonious,democratic, safe and comfortable work environment
Harmony and Health
Employees Empowerment,Building a Platform for Dreams
Business Line
All Employees
Sustainable Development,Enhancing Corporate GovernanceChairman'sStatement
Close Collaboration, Contributingto a Harmonious Society
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for DreamsAbout this
Report
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report13
Luxshare Precision has systematically identified and categorized seven stakeholder groups in line with the Company's business characteristics and value chain positioning. By proactively engaging with these stakeholders through diversecommunication channels, the Company dynamic gains a comprehensive understanding of their concerns and expectations pertaining to ESG factors. This structured approach facilitates ongoing improvement in the Company's ESG performance.The Company has established public, transparent and efficient grievance mechanisms and encourages stakeholders to report any adverse impacts that the Company may cause or contribute to through readily available channels, such asa dedicated public email (public@luxshare-ict.com), a designated complaints hotline and etc. We maintain the channels' efficiency and responsiveness, with assigned personnel addressing grievances, implementing corrective measures tomitigate adverse effects, and allowing relevant stakeholders to oversee the effectiveness of implemented improvements.
Stakeholder Communication
Stakeholder Communications and Concerned Topics
Public disclosure
Investigation and visitReport presentationMeeting paticipationSurvey questionnaire
Special Communication withESG investorsCall conferences, emails, etc.Survey questionnaire
Open tenderingSupplier conferenceSurvey questionnaire
Complaint hotlineField visitEvent participation
Shareholdersand InvestorsGovernment andRegulatory Agencies
SuppliersCustomersEmployeesCommunity Members
Partners
andSocial MediaEnergy ManagementEmployee Diversity and EqualOpportunitiesTalent Attraction and RetentionOccupational Health andSafetyResponsible Supply ChainManagementClimate-related Risks andOpportunitiesCorporate Governance andRisk ControlBusiness EthicsInformation Security andPrivacy ProtectionEnvironmental ComplianceManagementCarbon Commitment andManagement
Community EngagementCarbon Commitment andManagementWater Resources andWastewater ManagementWaste and CircularProductionEnvironmental ComplianceManagementBiodiversity ConservationAir Pollutants Management
Information Security andPrivacy ProtectionCarbon Commitment andManagementProduct ResponsibilityOpportunities in CleanTechResponsible Supply ChainManagement
Business EthicsProduct ResponsibilityInnovative Research andDevelopmentOpportunities in Clean TechProtection of EmployeeRights and InterestsCarbon Commitment andManagementCustomer RelationshipManagementClimate-related Risks andOpportunitiesWaste and CircularProductionHazardous Substances andChemicals ManagementInformation Security andPrivacy Protection
Talent Attraction andRetentionOccupational Health andSafetyProtection of EmployeeRights and InterestsEmployee Training andDevelopmentEmployee Diversity andEqual Opportunities
Energy ManagementProtection of EmployeeRights and InterestsProduct ResponsibilityInnovative Research andDevelopmentClimate-related Risks andOpportunitiesCarbon Commitment andManagementOpportunities in CleanTechCorporate Governanceand Risk ControlBusiness Ethics
Responsible Supply ChainManagementInformation Security andPrivacy ProtectionHazardous Substances andChemicals ManagementCarbon Commitment andManagementEquitable Treatment ofSmall and Medium-sizedEnterprisesBusiness Ethics
MajorConcernedMaterial Topics
Communication
Channels
Stakeholders
Partners include industry associations, NGOs, etc.Communication Frequency：
RegularRegular and irregularIrregular
General meetings of shareholdersPublic disclosure
Supplier management and reviewSupplier training and empowerment
Communication andinterviewWeChat official accountplatform
On-site auditTechnical seminarPhone conferences, emails, etc.Survey questionnairePublic disclosurePublic disclosure
Engagement in industryexchange activitiesEmployee symposiumEmployee complaints andappeal
Customer satisfactionsurvey
Labor unionEmployee engagement andsatisfaction survey
Sustainable Development,Enhancing Corporate Governance
Chairman'sStatement
Close Collaboration, Contributingto a Harmonious Society
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for DreamsAbout thisReport
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report14
The evaluation criteria for determining financial materiality ofESG topics aligns with the thresholds established as in the 2024 Annual Repo.
In accordance with the Guideline, Luxshare Precision conducts a comprehensivedouble materiality assessment. This evaluation considers not only the financialimpact of ESG-related matters on the Company but also the extensive economic,social, and environmental consequences of the Company's operations concerningthese ESG topics.During the Reporting Period, Luxshare Precision held a specialized financial
materiality workshop, attended by 16 senior managements who deliberated and
assessed the financial relevance of the identified ESG topics. A collaborativeassessment was further conducted with the insights derived from 986sustainability impact materiality survey responses gathered from diversestakeholders. Following the Board's review and approval, we developed adouble materiality matrix and mapped these topics across our value chain.
Material Topics Identification
Financial Materiality Workshop
Identification Process of Double Material Topics
Key Financial Indicators
OperationStrategyRegulationReputation
Compile a List of 24 ESG Topics
Conducting Double Materiality Assessment
Based on Stakeholder Engagement
Department
Interviews
SpecializedDiscussionQuestionnaireSurveyImpact MaterialityFinancial MaterialityDegree ofImpact
Scope ofImpact
Irremediableness
Degree of ImpactLikelihood ofOccurrence
Likelihood of OccurrenceSummary of Results and IncludingOpinions from Third-party Experts
Board Review
Strategic Planning &
Business Strategy
Latest ESGManagement Trend
Overall Situationof the Industry
Capital MarketFocus
Double Material Topics
Financial Material Topics
Impact Material Topics
Other ESG Topics
Sustainable Development,Enhancing Corporate GovernanceChairman'sStatement
Close Collaboration, Contributing
to a Harmonious Society
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for DreamsAbout this
Report
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report15
Double Material Topics for the Year 2024The Matrix of Double Material Topics
EnvironmentalSocialGovernanceFinancial Materiality of Luxshare Precision
The Materiality of Economic, Social,and Environmental lmpacts
Opportunities inClean TechOccupationalHealth and Safety
Employee Trainingand Development
Carbon Commitmentand Management
Innovative Researchand Development
Product Responsibility
Responsible SupplyChain ManagementClimate-related Risksand OpportunitiesProtection ofEmployee Rightsand Interests
Energy Management
Business Ethics
Biodiversity ConservationAir Pollutants Management
Corporate Governanceand Risk Control
Equitable Treatment of Small andMedium-Sized Enterprises
Customer RelationshipManagement
Information Securityand Privacy Protection
Talent Attraction andRetention
Employee Diversity andEqual OpportunitiesHazardous Substances andChemicals Management
EnvironmentalComplianceManagement
Community Engagement
Water Resources andWastewater Management
Waste and CircularProduction
Material TopicsNumber
Innovative Research and
Development
Carbon Commitment and
Management
Responsible Supply Chain
Management
Product Responsibility
Employee Training and
Development
Occupational Health and Safety
Climate-related Risks and
Opportunities
Opportunities in Clean Tech
Protection of Employee Rights and
Interests
Customer Relationship Management
Talent Attraction and Retention
Corporate Governance and Risk
Control
Information Security and Privacy
Protection
Employee Diversity and Equal
Opportunities
Hazardous Substances and
Chemicals Management
Water Resources and Wastewater
Management
Environmental Compliance
Management
Energy Management
Business Ethics
Community Engagement
Waste and Circular Production
Double MaterialFinancial MaterialImpact Material
Sustainable Development,Enhancing Corporate Governance
Chairman'sStatement
Close Collaboration, Contributing
to a Harmonious Society
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for DreamsAbout this
Report
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report16
Value Chain Mapping of Material Topics
Long-termMedium-termShort-term
Corporate Governance and Risk Control
Business EthicsCarbon Commitment and ManagementClimate-related Risks and Opportunities
Opportunities in Clean Tech
Energy ManagementWater Resources and Wastewater Management
Waste and Circular ProductionEnvironmental Compliance Management
Employee Training and Development
Occupational Health and SafetyProtection of Employee Rights and Interests
Talent Attraction and RetentionInformation Security and Privacy ProtectionEmployee Diversity and Equal OpportunitiesInnovative Research and DevelopmentResponsible Supply Chain Management
Product ResponsibilityCustomer Relationship ManagementCommunity Engagement
Stabilizing Enterprise OperationsContinuous Low-carbon Operation
Responding to Climate Change
Cultivating Green Products
Optimize Energy UseCultivating Green ProductsImplementing Green ManufacturingImplementing Green ManufacturingImplementing Green ManufacturingSupport for Training and DevelopmentEnsuring Occupational Health and Safety
Protecting Employee RightsAttracting Excellent TalentEnsure Information SecurityAttracting Excellent TalentPioneering Innovation and R&DCollaborative Value CreationStrengthening Client TrustStrengthening Client TrustRevitalizing Rural Areas
Pooling Compassion
Topic CategoryMaterial TopicsResponse SectionSupply Chain
Production/Operation
Product
CommunityEngagement
Time Scale
Governance
Environmental
Social
Hazardous Substances andChemicals Management
Operating an Honest and
Trustworthy Enterprise
Sustainable Development,Enhancing Corporate GovernanceChairman'sStatement
Close Collaboration, Contributingto a Harmonious Society
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for DreamsAbout thisReport
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report17
The momentum of the global economic greentransformation weakens
Production shutdowns, increased costs, and higherinsurance expenditures caused by physical risks;Additional costs and increased raw materialexpenses, etc. incurred from transition risks
Work-related accidents and occupational diseaseslead to a decrease in productivity, damage toreputation, and an increase in labor costs
Opportunities inClean TechOccupational Healthand SafetyEmployee Trainingand DevelopmentCarbon Commitmentand ManagementInnovative Researchand DevelopmentProduct ResponsibilityResponsible SupplyChain ManagementClimate-related Risksand OpportunitiesProtection ofEmployee Rights andInterestsEnergy ManagementBusiness EthicsCorporate Governanceand Risk ControlCustomer RelationshipManagement
Risks, Opportunities, and Response Strategies of Financial Material Topics
Mismatched training and development systemslead to a decrease in production efficiencyR&D and procurement expenditures increase forlow-emission transformationLoss of R&D investmentProduct quality issues lead to recalls, lawsuits, etc.Failure in supply chain management led to anincrease in operating costs and a decrease inprofitability
Incidents of rights infringement weaken theenterprise's reputation and talent attractionInefficient energy management leads to an increasein operating costsViolation of business ethics leads to compensationand finesThe decline in corporate decision-making powerleads to regulatory penalties and reputation lossFailure to establish good customer relationshipsleads to a shrinking market share
Actively deploy in clean technology areas such as new energyvehicles, optimizing systems and technology, recycling andreuse, power management, and renewable energy
Identify climate risks and opportunities, analyze policytrends, and assess the impact on the Company's operations,strategy, and finance through scenario analysis
Continuously strengthen the occupational health and safetymanagement system, and regularly carry out occupationalhealth and safety training and auditsProvide diverse training courses and capability developmentprograms for employees at different levelsEstablish short, medium, and long-term emission reductiontargets and key strategies, and carry out regular carbonaccounting and comprehensive carbon emission reductionAdhere to forward-looking investments and rely on theincentive mechanism to drive technological innovationContinuously improve the intelligent manufacturing and qualitymanagement system, and conduct regular quality auditsEstablish a management system that covers the entirelifecycle of suppliers, promoting a high-quality, green, andlow-carbon transformation of the supply chain
Establish a comprehensive labor risk managementmechanism to ensure operations comply with employees'rights and interestsApply an energy management system, monitor energy usage,and actively promote the low-carbon transformation ofenergy and energy efficiency retrofitEstablish Codes of Conduct for employees and suppliers, andregularly conduct internal audits and training on business ethicsPerfect the corporate governance structure, and continuouslystrengthen risk and internal control managementMaintain close communication with customers throughvisits, information collection, satisfaction surveys, and othermethods, continuously improving customer service
Drive the business transformation and expand into new markets
Improving resource management and recycling efficiency which leads to enhanced production capacityand operational efficiency while reducing expenditures related to raw materials, inventory, and logisticsParticipate in government-led energy conservation and emission reduction programs and benefit fromrelevant subsidies and incentivesTransitioning to low-emission energy sources such as solar power helps reduce carbon emissions andminimizes corporate's environmental costs
A healthy and safe working environment promotes operational stability and reducescompliance costs such as insurance premiumsStimulate organizational innovation, enhance efficiency, and reduce operating costsReduce operating costs, enhance the image of a low-carbon brand, and strengthenmarket competitivenessAssist in exploring new business opportunities and revenue growth pointsExceed customer expectations and gain new business opportunitiesA stable and compliant supply chain helps to ensure the timeliness of product or servicedelivery and enhances customer trust
Enhancing employee satisfaction leads to improving work efficiency and staff turnoverreductionEffective energy management can reduce costs and improve financial efficiencyAdhering to business ethics can enhance mutual trust and cooperation with stakeholdersEnhancing organizational resilience can boost investor confidence and market valueEnhancing customer satisfaction can lead to revenue growth
FinancialMaterial Topics
RisksOpportunitiesResponse Strategies
Sustainable Development,Enhancing Corporate Governance
Chairman'sStatement
Close Collaboration, Contributing
to a Harmonious Society
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for DreamsAbout this
Report
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report18
Production/Operation(Corporategovernance)
Continue to improvecorporategovernance andinternal controlsystemGuided by COSOframework, establishthree defense linesfor risk managementand internal control
Conduct regularstakeholdercommunicationthrough multiplechannelsConducted 26special ESG investorcommunications
Percentages offemale directorsand independentdirectors in theBoard are not lessthan one thirdFemale directorsaccounted for 43%Independentdirectors accountedfor 43%
Continuously improvethe business ethicsstandards andunblockwhistleblowingchannels to completea 100% handling rateof business ethicsrelated complaints100% handling rateof business ethicsrelated complaints
Conduct regularbusiness ethicstraining and build aculture of honestmanagement100% employeeanti-corruption trainingcoverage, and a total of286,567 hours ofanti-corruption andbusiness ethics relatedtrainings conducted
Retain 100% signingrate of theEmployee's Letter ofIntegrity Commitment
100% signing rate ofthe Employee's Letterof IntegrityCommitment
Strengthen employees'awareness ofconfidentiality, andtraining on informationsecurity and privacyprotectionA total of 506,805hours of informationtrainings conductedwith a total of 72,159person timesparticipated
Zero majorinformation leak,zero majorinformation systemfailure and zerobusiness continuityinterruption incidentZero relevantincident occurred
Targets andCommitmentsProgress
Targets andCommitments
Progress
Targets andCommitments
Progress
Luxshare Precision aligns with the principles of promoting SDGs for advancing sustainability works. The Company has established ambitious and challenging targets to drive initiatives across our supply chain, production/operation, product,and community engagement efforts.Target Commitment and Progress
Production/
Operation
Production/
Operation
（Environment）
（Employee）
Achieve an averagewaste transformationrate of 85.5% by2023, 88% by 2024,and 90% by 2025An average wastetransformation rate of
88.18%
Employ the thirdparty to conductwastewater testingat least once a year100% facilities havemet the standards
The withdrawn waterutilization rate willincrease by 20% by2025 compared withthat of 2021Increased by 15%compared to thebase year
The utilization rateof clean energy willreach 30% by 2023,40% by 2024 and50% by 2025Nearly 71% of cleanenergy utilization rate
The Company shallsave 250 millionkWh of energycumulatively from2023 to 2025Accumulativearound 350 millionkWh energy saved
Reduce absoluteScope 1 and 2emissions by 50.4%by 2032 from a2022 base yearDecreased by 51%compared to thebase yearValue and respect therights and interests ofall employees at homeand abroad, toavoid discriminationand damage to labors'rights and interestsZero incident ofany type ofdiscriminationoccurred
Realize “zero work-relateddeath incident and zerooccupational diseaseincident”, and achieve 10%reduction in annualwork-related injuryincidents of the Companyeach year compared tothe previous year from2023 to 2025
Zero work-relatedfatality occurred, andthe number ofwork-related injuriesdecreased by 24%year-on-year
Construct an occupationalenvironment withdiversity, inclusivenessand equality, provide acompetitive remunerationplan for all employees,provide diverse promotionchannels
Conitinue to improvethe variablecompensation system,equity incentive plan,and dual-channelpromotion system thatcovers all employees
Unblock employeecomplaint channels,actively carry outemployeecommunications, andbuild a team of employeeswith high satisfaction andengagement
Conduct an annualemployeeengagement andsatisfaction survey,with a 100% closurerate for employeecomplaint incidents
100% employeesreceive on average20 hours of trainingannually by 2025
100% employeetraining coverage,with an averagetraining duration ofnearly 21 hours perperson
Sustainable Development,Enhancing Corporate Governance
Chairman'sStatement
Close Collaboration, Contributingto a Harmonious Society
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for DreamsAbout thisReport
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report19
Complete the intelligentproduction andmanufacturing system, andgradually promote theindustrial intelligenttransformationachieved the interconnection ofmaterials, manufacturing, andsupply operations, and promotedactions such as predictivemaintenance and repair ofintelligent devices and optimizationof logistics routes
Strengthen the qualitymanagement system andcontinuously improveproduct quality
The Company and its majorproduction bases havepassed the ISO 9001Quality ManagementSystems certification
Adhere to forward-lookinginvestment in research anddevelopment, encouragingthe innovation anddevelopment of coretechnologies1,381 patents were newlyadded, and the totalnumber of patentsreached 7,164
Continuously increase R&Dinvestment in greenproducts and cleantechnology, and encouragethe R&D and application ofpatents related to cleantechnologyMore than 400 million RMBwas invested in the R&D ofgreen products and cleantechnology, and 50 patentsrelated to clean technologywere obtained
By means of technology,service, and innovation,maximize customer valueand establish long-term,stable, and sustainablecooperative relationshipsContinuously conductcustomer satisfactionsurveys and won morethan 10 core customerawards
Strictly implement theclassification control ofhazardous substances, andgradually promotereplacement andcomprehensive reductionIn line with domestic andinternational policy trendsand customer standards,proactive managementmeasures were adopted, andpromoted the hazardoussubstances phase-out plan
Actively support ruralrevitalization
10.35 million RMB invested
in rural revitalizationactivities; organized andcarried out charitablefarming assistance, ruralcultural, and ruraleducational activities
Actively contribute to localcommunity construction
3.41 million RMB invested in
public welfare and charitableactivities; organized andcarried out social welfareactivities such as old clothingrecycling, disaster relief, andblood donation campaigns
Product
CommunityEngagement
Maintain goodcommunication with thelocal community whereoperations are conductedActively participated incommunityactivities, and cared forand visited vulnerablegroups
Targets andCommitments
Progress
Targets andCommitments
Progress
Targets andCommitments
Progress
Initiate green supply chaininitiatives to promoteenvironmental and socialresponsibility amongsuppliersAssisted 110 suppliers inremoving records ofenvironmental violations
Promote suppliers to save100 million kWh of energycumulatively from 2023 to2025
Promoted suppliers to save
48.9 million kWh of energy
cumulatively
Reduce Scope 3 emissionsby 58.1% per CNY of valueadded by 2032 from a2022 base
Reduced by 22% comparedto the base year
The 3TG materials involvedin all products are 100%sourced from RMAPconformant SORs and100% traced back to theircountry of originThe 3TG materials involvedin all products are 100%sourced from RMAPconformant SORs and100% traceable to theircountry of origin
Supply Chain
Sustainable Development,Enhancing Corporate GovernanceChairman'sStatement
Close Collaboration, Contributing
to a Harmonious Society
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for DreamsAbout thisReport
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report20
Luxshare Precision has implemented a corporate governance framework that complies with the Company Law of the People's Republic of China(2023 Amendment) (Company Law), the Shenzhen Stock Exchange Self-Regulato Guidelines for Listed Companies – Main Board Listing Standards,and other relevant laws and regulations. This framework includes the Shareholders' Meeting, the Board of Directors and its specialized committees,the Board of Supervisors, and the senior management team.For detailed information regarding the corporate governance structure and responsibilities, please refer to Section IV of the 2024 Annual Repo and
the Aicles of Association.
Governance Structure
A robust corporate governance framework is critical for ensuring organizational stability and resilience. The Company continues to strengthen itsinternal controls, protect investors' rights, enhance corporate governance practices, and meticulously fulfill its statutory tax obligations in compliancewith local regulations across all jurisdictions of operations. For further details on the Company’s generation, distribution, and retention of economicvalue, along with government-provided fiscal support, please refer to Section X of the 2024 Annual Repo.
In 2024, the Company updated the Aicles of Association, the Independent Director Operation System, the Detailed Rules for the Operation of theRemuneration and Appraisal Committee of the Board of Directors, the Management Rules for Related Pay Transactions, and the Rules of Procedure forShareholders' Meetings. These updates aim to refine the governance system and effectively safeguard the rights and interests of investors and otherstakeholders.
Stabilizing Enterprise Operations
To ensure the independence and objectivity of the Board's decision-making,directors are prohibited from participating in the review of transactionsinvolving entities with which they have an affiliation. Furthermore, they are notpermitted to exercise voting rights on such resolutions or to act as proxies forother directors. During the Reporting Period, the Company convened a total of9 Board meetings.For detailed information regarding the operation of the Board of Directors, thespecialized committee, and related-party transactions, please refer to SectionsIV and VI of the 2024 Annual Repo and the Aicles of Association.
Operation Mechanism of the Board of Directors
Luxshare Precision promotes diversity in its board composition and adheres tothe principle of selecting talent solely on merit. In the appointment of directors,the Company comprehensively evaluates various factors, including gender, age,nationality, cultural background, educational qualifications, professionalexpertise, experience, and independence, laying the groundwork for scientificand effective governance. The Company rigorously follows director selectionprocedures outlined in the Company Law and Aicles of Association, ensuringthat the number and composition of directors align with regulatoryrequirements. In June 2024, following shareholders' approval, the Companyfinalized the election of the Board of Directors. The current board comprises 7
directors, including 3 independent directors and 3 female directors. Forfurther details, please refer to section IV of the 2024 Annual Repo.
Election and Composition of the Board of Directors
Corporate Governance Structure
Board of Directors
Senior Management
Shareholders' Meeting
Board of Supervisors
Audit CommitteeStrategy CommitteeRemuneration and Appraisal
CommitteeNomination Committee
Sustainable Development,Enhancing Corporate Governance
Chairman'sStatement
Close Collaboration, Contributing
to a Harmonious Society
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for DreamsAbout thisReport
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report21
During the Reporting Period, Luxshare Precision completed:
Large-scale investor engagement activities5 eventsSmall-scale communications by phone, email, etc417 timesInquires and communications via Easy IR platform151 times
The Remuneration and Appraisal Committee of the Board of Directors, chaired by an independent director, is responsible for designing, reviewing,and implementing compensation plans, policies, and schemes for directors and senior management. Directors and senior managements' annualcompensation shall be reviewed and approved through shareholder's meeting, ensuring the rationality and appropriateness of compensation
strategy.The Company adopts a "base annual salary + long-term Incentives" compensation structure for directors and senior management, effectivelyaligning the interests of shareholders, the Company, and incentive recipients. To safeguard shareholders' legitimate interests, the Company hasestablished a compensation Clawback & Malus mechanism. This mechanism defines key elements, including eligible compensation types, clawbacktriggers, recoup amounts, and clawback thresholds. The sustainability-related targets are embedded within performance assessments to ensure
the achievement of the Company's future development strategies and sustainable development goals.For details regarding the compensation determination procedures and Clawback & Malus mechanism, please refer to the Aicles of Association andWorking Rules for the Remuneration and Appraisal Committee. During the Reporting Period, the compensation details for directors, supervisors, andsenior managements are referred to in section IV of the 2024 Annual Repo.
Remuneration Policies
Luxshare Precision ensures equal treatment for all shareholders and strictlycomplies with the provisions and requirements outlined in the Company Law,Aicles of Association, and Rules of Procedure for Shareholders' Meetings. TheCompany holds at least one shareholders' meeting annually to enable allshareholders, particularly smaller and medium-sized ones, to fully exercise theirrights. During the Reporting Period, Luxshare Precision held 2 shareholders’
meetings.
Protection of Investors' Rightsand Interests
Luxshare Precision adopts multiple communication channels to engage withinvestors, facilitating prompt dissemination of the Company's latest operationaland developmental updates to both domestic and international stakeholders.These channels encompass investor exchange meetings, ESG-focusedstrategic discussions, the Investor Relations section on the official website,phones and emails, virtual performance briefings, and easy IR platform.Through these channels, the Company addresses investors' concerns related tobusiness operations, financial standing, external investments, industry planning,and sustainability matters.During the Reporting Period, Luxshare Precision executed a total of 26 specialcommunications with ESG investors, actively addressed stakeholder concernsregarding the Company's ESG targets and sustainable development agenda,thereby enhancing investors' understanding of Luxshare Precision's ESGpractices. These efforts enhanced the transparency in the Company'sinformation disclosure and further strengthened investors' trusts.
Investor Communications
Structure of the Board of Directors MembersNameTitleGender
Industry orTechnology
Legal, Financial,or Accounting
Industry orTechnology
Legal, Financial,or AccountingProfessional Knowledge and SkillsMain Experience
Wang LaichunWang Laisheng
Qian JiwénHao JieLiu ZhonghuaSong YuhongHou Lingling
ChairmanVice Chairman
DirectorDirectorIndependent DirectorIndependent DirectorIndependent Director
Female
MaleMaleMaleMaleFemaleFemale
Sustainable Development,Enhancing Corporate GovernanceChairman'sStatement
Close Collaboration, Contributingto a Harmonious Society
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for DreamsAbout thisReport
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report22
Completed of internal audit tasks25 times
The Company has developed a comprehensive Business Continuity Management (BCM) system designed to ensure "operational stability". Thissystem integrates the Incident Management Plan (IMP) and the Business Continuity Plan (BCP), serving as a key component of the second defenseline. To guide the effective planning, implementation, and ongoing enhancement of the BCM system, the Company has created a Business ContinuityManagement Manual in accordance with the ISO 22301 Business Continuity Management Systems.
Business Continuity
In accordance with the COSO framework, the Company adopted three defense lines for risk management and internal control.Risk Management
BG/BU: Business Group/Business Unit
BCM System
The Internal Audit Department, as the Company's internal independent auditinstitution, serving as the core of the third defense line. This departmentcontinuously oversees key risk domains, including social responsibility, financialtransactions, procurement operations, asset management, sales activities, andinformation security, through regular inspections, audits, internal controlevaluations, and specialized reviews. In 2024, we undertook targetedimprovements to dozens of policies and systems, ensuring the robustness ofthe organization's internal control framework.
Internal Audit
Audit frequency and coverage：Each BG/BU is required toundergo at least1 comprehensive audit every 2 years
Internal infrastructure network failureExternal operator network outage
Partial or complete server failureCritical data missing
Unscheduled external power outagesInternal power equipment failureWater/gas supply interruption
Abnormal staffturnoverSudden flood disaster
BG/BU
Establish internal control measures to assess and mitigate risks inherent in the operational execution of variousbusiness processesCompliance Management Department
Establish a compliance management system, offer guidance on risk management frameworks, compliancestrategies, and oversight of emergency drills, and design risk assessment and control measuresAudit Department
Conduct internal audits to independently evaluate the effectiveness of risk management and internal controls acrossthe first and second lines of defense, and oversee the execution of improvement measuresThird Defense
LineSecond Defense
LineFirst Defense Line
Information security
Supply chain disruption
Labor shortageManufacturingunavailable
Public healthemergencies
Infectious disease
IMP
BCP
Manpowershortage
Supply chaindisruption
Labor dispute
Information
Security
Manufacturingsites unavailablePolitics/PolicyEarthquake
Heavyrain/typhoon
Infectious
diseases
FireR&DOperationManufacturingSupply chain
ProductdeliveryFinance
InformationTechnology
Business
HumanResources
Administrative
BCM Policy
BCMProcedures
Organization & Responsibility, Operating Mechanism, and Execution & Assessment
BusinessEffect Analysis
RiskAssessment
StrategySelection
IMP / BCPTrainingTest/Drill
Maintenance/Improvement
During the Reporting Period, Luxshare Precision:
BCM Drills in 2024
Suppliers' supply interruptionGlobal material shortage
Stakeholders' needsand expectations
Achieve BCM goals andstable operations
Sustainable Development,Enhancing Corporate GovernanceChairman'sStatement
Close Collaboration, Contributing
to a Harmonious Society
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for DreamsAbout thisReport
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report23
Luxshare Precision has established a governance framework for businessethics under the oversight of the Chairman of the Board and CEO. The
Chairman is accountable to the Board of Directors and receives regular updatesfrom the Discipline Committee.Based on applicable laws and regulations related to business ethics, includingthe Anti-Monopoly Law of the People's Republic of China, the Anti-UnfairCompetition Law of the People's Republic of China, the Anti-Money LaunderingLaw of the People's Republic of China, the Interim Provisions on ProhibitingCommercial Bribe, and the Company Law of the People's Republic of China,Luxshare Precision has established a comprehensive suite of policies andprocedures, including the Luxshare Precision Global Business Conduct and
Ethics Guidelines (COC),the Luxshare Precision Supplier Code of Conduct, the
Ethical Code of Conduct Compliance Management System, the Employee IntegrityManagement System, and the Procurement Business Ethics Management System.Together, these frameworks govern and oversee the ethical business practicesof employees, management, suppliers, and partners.To further enhance corruption risks control, Luxshare Precision conducts
regular audits of ethical standards across all operations (BG/BU) once everytwo years, to safeguard the Company's operational stability. During the
Reporting Period, 2 corruption-related incidents involving embezzlement,bribery and abuse of position were confirmed through internal audits. Bothcases were resolved in accordance with the Company's established policies,and no material risks were detected.
Business Ethics Governance
Luxshare Precision upholds an unwavering commitment to the principles of"Integrity and Honesty, Oneness and Fairness, Reliability and Compliance, andSelf-discipline" The Company actively cultivates a culture of integrity andtransparency, which contributes to creating a fair and honest market environment.
Operating an Honest andTrustworthy Enterprise
Business Ethics Governance Structure
Zero litigation cases involving corruption of the Company
and its employees
Chairman of the Board
Pay attention to updateson anti-corruptionregulations and policiesReview anti-corruptionpolicies and proposerevision opinionsAssist in investigationsand case analysisParticipate in orcooperate with litigationor arbitrationRecover damages
Discipline Committee
During the Reporting Period, Luxshare Precision:
Legal Group
Monitor business risksConduct business ethicsinvestigationsAccept and investigatereports/ accusationsEstablish ananti-corruption systemand optimize inspectionpolicies and proceduresOrganize or cooperate ininvestigations, evidencecollection, andaccountability
Publish anti-corruptionnews and advocateintegrity knowledgeOrganize anti-corruptiontrainingsRoutine tasks such asconference organization,information circulation,and file managementUndertakeanti-corruptionwork-related liaison andcommunication
Compile budgets andcontrol expensesOrganize, summarize,and analyze dataAnalyze and review thefinancial rationality ofprocurement projectsMonitor financialtransactionsCollect, organize,archive, and retrievefinancial documents
Collect, analyze andmanage anti-corruptiondata informationProvide and analyzeinformation on suppliertransactionsIssue alerts for abnormaltransactionsEstablish and executesuppliers' evaluationsystem
Financial GroupAudit GroupPublicity GroupInvestigation Group
Sustainable Development,Enhancing Corporate GovernanceChairman'sStatement
Close Collaboration, Contributing
to a Harmonious Society
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for DreamsAbout this
Report
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report24
ReportReceiving
In 2024, Luxshare Precision did not employ part-time or contract workers.
The Company actively conducts comprehensive business ethics training programs covering all employees (include part-time and contractors
),and all suppliers, to foster an organizational integrity culture.Anti-corruption Cultural Construction
Luxshare Precision has adopted a strict "zero tolerance" policy toward discrimination or retaliation of any kind against whistleblowers. The Companyhas implemented the Whistleblower Protection and Anti-Retaliation Policy, aimed at safeguarding the privacy and rights of whistleblowers, avoidingconflicts of interest among investigators and offering legal assistance and additional protective measures, thereby protecting whistleblowers fromretaliation.
Whistleblower Protection
The Company encourages employees and stakeholders to report anymisconduct. We provide multiple reporting channels and establish rewards forreporting. Upon receiving a report, a specialized investigation team is assembledbased on the case's size and nature, while safeguarding the legitimate rights andinterests of all parties involved. During the Reporting Period, handling rate of
business ethics related complaints reached 100%.
Reporting Management
Reporting Channels
Whistleblower Protection Measures
Whistleblowing Management Flowchart
Address ：#313 Beihuan Road, Qingxi Town, Dongguan,
Guangdong Province, China
Phone ：0769-38800880Email ：justice@luxshare-ict.comWeChat：13144861180QQ：3413207068
Acceptingreports
AssigningtaskforcesSigning theStatement ofInvestigation
Evidencecollection andverification
Deciding whetherthe suspectedact is true or notImplementingreward andpunishmentmechanisms
CaseAssignment
Investigation
CaseConclusion
Training on Business Ethics and Cultural DevelopmentTraining SupportCultural PromotionAssessment and ManagementInvite internal and external experts withprofessional expertise and experience toconduct trainingsOrganize and implement various training andknowledge-sharing programs for allemployees, managerial staff, suppliers, andother stakeholder groups in China andinternational locationsArrange and encourage employees to studythe most recent information and updatesconcerning anti-corruption and commercialbribery
Send the Integrity Notication Letter toall employees via email every month.Send Luxshare Precision's Commitmenton Anti-corruption to suppliers throughplatform every month and duringholidaysRegular publish articles to promoteawareness through "Integrity Luxshare"Block
Employees are required to fill out andsign the Employee's VoluntaDeclaration and the Employee's Letter ofIntegrity CommitmentSuppliers are required to fill out and signthe Supplier's Volunta Declaration andthe Letter of Integrity Commitment forSupplierIntegrate COC into the quarterly trainingand assessment for employees, and theassessment results will directly affecttheir performance appraisal andpromotion opportunities
Protect the Privacyof Whistleblowers
Avoid Conflicts ofInterest among Investigators
Seriously Investigateand Handle Retaliation Incidents
Report any instances of retaliation promptlyto the facilities' top supervisor and theDirector of the Discipline Committee oncethey are identifiedProvide legal assistance to whistleblowers
Strictly prohibit the unauthorizeddisclosure of whistleblower-relatedinformationDesignate specialized Investigator tohandle the reports while keeping itconfidential
Require investigators to sign theStatement of Discipline Committeeand Case Investigation Personnel toensure they have no conflict ofinterest with the reported individuals
Sustainable Development,Enhancing Corporate Governance
Chairman'sStatement
Close Collaboration, Contributingto a Harmonious Society
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for DreamsAbout this
Report
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report25
Including the organizationally equivalent the Letter of Integrity Commitment signed between the designated suppliers and the customers.
Luxshare Precision steadfastly upholds a fair competitive market environment and adheres to the legalframeworks of the jurisdictions in which it operates, including the Anti-Unfair Competition Law of the People'sRepublic of China, the U.S. Foreign Corrupt Practices Act, and the UK Bribe Act. The Company aligns with the COCand the Code of Ethics Operations Procedure, explicitly prohibits employees from unlawfully obtaining tradesecrets or other confidential information from third parties, strictly forbids the dissemination of false or misleadingadvertisements and maintains a zero-tolerance policy toward any form of illegal activities that disrupt marketorder, such as colluding with competitors on pricing. These measures collectively aim to promote fair competitionand preserve market integrity.
Anti-unfair Competition
In November 2024, the Company conducted anti-corruption and integrity training sessions across variousmanufacturing factories in Vietnam. These sessions engaged over 1,000 key employees, managementpersonnel and those in key roles. The training curriculum covered the companys business ethicsmanagement structure, notable case studies, both domestic and international anti-corruption standards,and the organization's anti-corruption policies, among other topics. The primary objective of thesesessions was to strengthen the integration of ethical governance principles and cultivate a positiveorganizational culture that supports anti-corruption initiatives and promotes integrity.
Case | Anti-corruption and Integrity Trainings Conducted in Multiple Factories across Vietnam
During the Reporting Period,Luxshare Precision:
COC exam pass rate achieved100 ％Employee anti-corruption trainingcoverage achieved100 ％
Completed Employee's Letter of IntegrityCommitment signing rate of100 ％Completed Letter of IntegrityCommitment for Supplier signing rate
of
100 ％
Total anti-corruption and businessethics-related training hours achieved
286,567 hours
Zero litigation case involving anti-unfair
competition, anti-trust, or anti-monopoly issue
During the Reporting Period, Luxshare Precision:
Luxshare Vietnam Organized Anti-corruption and Integrity Training
Luxshare Van Trung Organized Anti-corruption and Integrity Training
Luxshare Nghe An Limited Organized Anti-corruption and Integrity Training
Sustainable Development,Enhancing Corporate Governance
Chairman'sStatement
Close Collaboration, Contributingto a Harmonious Society
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for DreamsAbout thisReport
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report26
Zero informationleakage incident
Luxshare Precision aligns with the ISO 27001 Information Security Systems and strengthens the robustness of its information security throughmanagement measures such as BCM, information security audits, data protection management, and security awareness advocacy.
In 2024, after conducting a comprehensive assessment of potential information security risks tied tothird-party translation platforms, the Company self-developed a fully enclosed localized translationprocessing system. This internally managed intelligent processing system effectively reduces thelikelihood of commercial secrets being leaked. Additionally, we deployed a terminal sentinel system forsensitive areas linked to new product introductions. The system monitors endpoint security statuses inreal time, regular reports on key indicators, and features anomalies self-resolution and timely alerts.Even when faced with complex scenarios, such as isolated irregularities, the system can achieve earlywarnings upon first detection, thereby improving monitoring and visual tracking of security metrics.These enhancements allow security team to react quickly and decisively, significantly strengtheningoverall data security.
Information Security Management
We have organized a series of information security trainings for employees andsuppliers, to enhance employees' information security awareness andcompetencies, as well as the level of information security along the supplychain.
Information Security TrainingLuxshare Precision is dedicated to fostering a compliant, secure, and stable operational environment. By effectively implementing its informationsecurity and privacy protection management system, the Company safeguards itself, its customers, and all relevant stakeholders against potentialrisks associated with data breaches and privacy violations.
Ensuring Information Security
The Company has implemented information security training programs across
multiple manufacturing factories, focusing on critical areas such as information
security awareness, confidentiality protocols, information security management
systems, and phishing emails preventions. Cumulatively, employees have
completed 506,805 hours of trainings.
Employees
To ensure compliance with information security management practices, we
have established a stringent assessment system, mandating that supplier
personnel pass a professional certification exam prior to site access. In 2024,
Luxshare Precision undertook comprehensive training and audits for suppliers
engaged in confidential projects, with over 300 on-site audits and guidance
accomplished. These efforts emphasized the significance of information
security and provided practical insights, ensuring the information security of
suppliers' work equipment and environment.
SuppliersKey Measures of Information Security Management
Conduct multi-dimensionalemergency drills for allnodes of critical businessoperations, includingbackup recovery, networkoutages, server failures atkey nodes, andmisconfigurations
Conduct penetrationtesting, vulnerabilityscanning, and informationsecurity audits across allfacilities, completing 280improvement projects
Continuously implement fullcoverage of equipmentwithin the confidential areaConduct study on the risksof transferring personalinformation and data abroadto protect privacy data
Utilize posters and comicscombined with trendingtopics to raise informationsecurity awareness
Business ContinuityManagement
Information SecurityAudit
Data ProtectionManagement
Security AwarenessAdvocacy
During the Reporting Period,Luxshare Precision:
Sustainable Development,Enhancing Corporate GovernanceChairman'sStatement
Close Collaboration, Contributingto a Harmonious Society
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for DreamsAbout this
Report
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report27
Zero verified complaint involving the infringement of customerprivacy, and loss or leakage of customer data
The Company adheres to national laws and regulations, including the Personal Information Protection Law of the People's Republic of China, as well ascustomer requirements and industry standards. The Company has established a comprehensive suite of privacy management procedures and datadesensitization standards, such as the Commercial Secret Management Procedure and the Information Security Management Procedure for RelevantPaies. Through the COC and the Employee Handbook, Luxshare Precision outlines specific privacy protection requirements. Regular trainings andassessments are conducted to guide employees' behaviors and strictly prohibit the unauthorized disclosure of partners' personal and commercialinformation.
The Company has operationalized a cybersecurity posture awarenessplatform spanning hardware infrastructure and systems. This solutionenables continuous monitoring of emerging attack vectors, assetexposure risks, and systemic vulnerabilities through organization-widereal-time data aggregation and multidimensional behavioral analytics.Combining with our closed-loop automated response protocols, we haveestablished a cross-factory coordination cyber defense architecture.In 2024, we refined alert rules and threat cases detection analysis,achieving a reduction in false-positive alerts and a decrease in the totalnumber of alerts and security incidents by more than 60%.Concurrently, we remediated more than 50 vulnerabilities throughsystematic patch management, substantially elevating enterprise-widecybersecurity safeguards.
Privacy Protection Management
Privacy Protection Measures
Case | Luxshare Precision Established a Cybersecurity Posture Awareness System
Cybersecurity Posture Awareness System
Authorization managementRequire to use standardized and complexity-compliant user-names,passwords or pass-phrases, and should not disclose to anyirrelevant or authorized personnel
Equipment inspection and maintenance
The installation, debugging, and overhaul of computerequipment involving company secrets shall be undertaken byinternal professional technical personnel, and other personnelshall not disassemble and overhaul the computer equipment
Confidential Meeting
The organizing department shall strictly determine the attendingpersonnel for any confidential meeting. For online meetings, theorganizing department shall set up passwords and encrypted linksand review attendees beforehandAccess permission termsAll parties providing various products or services to the Companythat require physical or logical access to the Company's informationassets must sign a confidentiality agreement or confidentialityclauses document
Privacy protection training
Require employees to complete privacy protection-relatedtrainings and assessments
Storage of confidential information
Confidential documents, records, disks, optical discs, or otherstorage media should be placed in locked file cabinets, safes, orother forms of safe furniture when not in use, and the keys aremanaged by designated personnel
Confidential information management
Persons involved should properly safeguard confidentialmaterials obtained for official purposes. Individuals must nottake them home or to any public place, nor disclose them tooutsiders
Privacy protection contentDefined according to customers' requirements or the Company'sclassification standards
Privacy protection mark
According to the determined level of confidentiality andconfidentiality period, attach a confidential mark or affix a similarseal for the commercial secret dataDesensitization resources protection
Develop desensitization standards according to differentbusinesses, departments, and relevant parties
Classified Management
Personnel Management
Access Permission
Asset Management
During the Reporting Period, Luxshare Precision:
Sustainable Development,Enhancing Corporate GovernanceChairman'sStatement
Close Collaboration, Contributingto a Harmonious Society
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for DreamsAbout this
Report
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report28
Climate-related Risks and OpportunitiesWater Resources and WastewaterManagementWaste and Circular ProductionBiodiversity Conservation
Air Pollutants ManagementCarbon Commitment and ManagementEnvironmental Compliance ManagementEnergy Management
Adhering to the concept of green and low-carbon development is an essential pathfor the Company to achieve high-quality growth. Luxshare Precision committed toits environmentally friendly promise, and is proactively identifying, managingclimate risks and opportunities, setting science-based carbon targets in line withthe 1.5℃ pathway and establishing a carbon reduction roadmap for the valuechain. We will continuously deepen green operations, strictly control environmentalpollution and implement resource recycling, comprehensively improve the level ofgreen manufacturing, and promote industrial green transformation.
Green Transition,Fulfilling Environmental Responsibility
Responding to Climate Change
Luxshare Precision follows the Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), Guideline and other disclosurerequirements, proactively assesses climate-related risks and opportunities in various aspects of upstream and downstream operations as well as itsown operations from four aspects of "Governance", "Strategy" , "Risk Management" and "Metrics and Targets". For details, please refer to theClimate Risk and Oppounity Identication and Response Strategy.
2021202220232024
Establishing a climate change management framework led and decided by the Board of Directors, reviewed by theStrategy Committee, coordinated and managed by the Sustainable Development Center, and implemented by eachfactory. Conduct at least one annual discussion on climate change related issues to develop plans and track theachievement of climate goalsEstablishing an incentive mechanism linking emission performance to the remuneration of senior management,incorporating the achievement of science-based target into considerations, motivating the Company's managementto integrate emission reduction into operational decisions
Current and potential climate risks have been integrated into the Company's overall risk management framework andimplemented in the annual tasks of each risk management departmentThe Sustainable Development Center regularly holds special meetings to discuss and analyze the environmental risksand opportunities reported by various risk management departments, formulate risk countermeasures, and submitthem to the Strategy Committee under the Board of Directors for final review
Identifying potential climate risks and opportunities in its own operations and value chain, evaluate the importance ofvarious climate issues in the current and future macro environment in conjunction with relevant international anddomestic policies, and estimate development trendsUtilizing the Net Zero Emissions (NZE 2050) scenario set by the International Energy Agency (IEA) and theRepresentative Concentration Pathway (RCP8.5) scenario set by the Intergovernmental Panel on Climate Change(IPCC) to evaluate the impact of climate change risks and opportunities on the Company's business, strategy, andfinancial planning, proactively formulates climate response strategies, and enhances organizational climate resilience
Establishing science-based targets in line with the 1.5°C pathway, which have been formally validated and approved bythe Science Based Targets initiative (SBTi)Setting phased climate targets and committing to achieving carbon neutrality no later than 2050
C
B
A-
A
2024202320222021
Governance
Strategy
RiskManagement
Metricsand Targets
CDP Climate Change Rating
Climate Action Transparency Index (CATI)
OverallRanking
IndustryRankingOverallRanking
IndustryRankingOverallRanking
IndustryRankingOverallRanking
IndustryRanking
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout thisReport
Chairman'sStatement
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report
Carbon Reduction Targets and Action RoadmapIn alignment with the Paris Agreement's ambitious goal of limiting global temperature increase to 1.5℃ abovepre-industrial levels, Luxshare Precision has taken a leading role in corporate climate action. By systematicallyanalyzing baseline carbon emissions and integrating projected business growth with SBTi reduction pathways, theCompany has established decarbonization targets spanning both its operations and core value chain. LuxsharePrecision has developed a three-phase implementation roadmap (short-term, medium-term, long-term)supported by six core carbon neutrality strategies. Through scientifically quantified emission reductionmechanisms, the Company is methodically delivering on its climate commitments.
Continuous Low-Carbon Operations
Carbon Neutrality Roadmap
Luxshare Precision has issued the Luxshare Precision Carbon Management Commitment and Statement andhas established a series of policies and procedures such as the Greenhouse Gas Operation Guidelines and theOperation Procedure of Greenhouse Gas Control to implement the path of low-carbon development throughactions. We conducted comprehensive carbon accounting and set carbon reduction targets that align with ourown development. At the same time, we continuously optimize our carbon management platform, activelyparticipate in the formulation of greenhouse gas-related standards and promote steady progress in carbonreduction efforts.
The timeframe is from 2023 to 2025.
Launched carbon emission automaticaccounting function in the GSCM systemCoached over 50 suppliers to reducecarbon emissions
Engaged third parties to conductcarbon footprint assessment for anumber of products
Built charging pile in several factories toencourage employees to travel in a green waySelected lower emission coefficientrefrigerant (e.g. R32, etc.) to replacethe traditional refrigerantInstalled PV capacity of 150MWcumulativelyLaunched 349 energy efficiencyretrofit projects and reduced130,929 tCO2e
Kick off energy efficiency retrofit andequipment replacementsStrengthen on-site energy managementEnhance the energy efficiency of processesVerify energy-saving achievements throughthird-party validationImplement Waste Heat Utilization andGround-source Heat Pumps Utilization
Install rooftop solar PV panelsEngage in green electricityprocurementActively utilize biomass energyGradually phase out dieselforkliftsExpand energy storage projects
Reduce high-emission travel methods such as airtravelEncourage employees to use green transportationmodeDigitize asset management and strengthenequipment maintenance to extend the equipmentlifePromote paperless office operationsEncourage employees to use new energy vehiclesand expedite the installation of charging stationswithin the factory premises
Replace hexafluoropropane/carbondioxide fire extinguishers and assessthe feasibility of using powder fireextinguishersPurchase air conditioning refrigerantswith low leakage rates
Establish a Green Supply ChainManagement (GSCM) systemProvide energy-saving andefficiency-boosting trainingPromote energy conservation andemission reduction projectsEncourage core suppliers todisclose carbon emissions data
Conduct product carbon footprintassessmentsEncourage the use of renewablematerials and recycled materialsReduce product packagingImprove product energyefficiency
Save 250 million kWhenergy cumulatively
Clean energy utilizationrate increase to 50%
Save 100 million kWh energycumulatively by our suppliers
Reduce absolute Scope 1 and 2GHG emissions by 50.4%compared with base year
Reduce Scope 3 GHG emissions
58.1% per CNY of value added
compared with base year
Achieve carbon neutralityno later than 2050Around 350million kWh
Nearly 71%Around 48.9 million kWhDecreased by 51%Decreased by 22%Orderly progress
Short-term targets (By 2025)Mid-term targets (Science-based carbon reduction targets by 2032)Long-term targets (By 2050)
Improve energy efficiencyOptimize energy structureMinimize fugitive
emissions
Support suppliers inreducing emissions
Promote low-carbon
design
Create eco-friendlyoperational scenarios
2024KeyMeasures
PhasedTargets
KeyStrategies
2024 Progress
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious SocietyAbout this
Report
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report
1,755,4072,018,887
1,849,052
2,098,31193,645
79,424
2,086,738
2,168,108
81,370
1,385,530
1,479,175
93,645
581,306
660,730
79,424
649,157
730,527
81,370
2.46
2.72
6.91
8.64
7.81
8.07
Each year, we conduct a comprehensive inventory of Scope 1, 2, and 3 greenhouse gas emissions in accordance with ISO 14064-1guidelines, followed by third-party verification. This process ensures precise annual greenhouse gas emission quantification and clarifiesour energy consumption structure, laying a solid foundation for effective carbon management. During the Reporting Period, subsidiariescovered by carbon emission trading schemes fully complied with national and regional regulations. We proactively completed emissionsdata reporting, allowance trading and quota settlements, supporting the development and stable operation of carbon markets.Additionally, our subsidiary Shanghai Ri Ming actively pursued zero-carbon factory certification by implementing multiple emissionreduction measures. Through Verified Carbon Standard (VCS) retirement, it successfully offset approximately 315 tCO2e, successfullyachieved carbon neutrality and was honored as a Shanghai 2024 Zero-Carbon Pioneer Enterprise.
In 2024, Luxshare Precision introduced an internal carbon pricing mechanism to estimate the cost of carbon emissions using a shadowprice in conjunction with historical and future carbon price expectations, making full use of economic instruments to stimulate newmomentum for internal low-carbon transformation.
Scientific Accounting of Carbon Emissions
Greenhouse Gas Emissions
Location-based
Market-based
Scope 1 Greenhouse Gas Emissions (tCO
e)Scope 2 Greenhouse Gas Emissions (tCO
e)
Figures in 2024 have not been verified.
Changes in company boundaries due to business activities such as mergers and acquisitions.
2022 Base YearSBT Boundary
2024 SBT
Boundary
2024 Operational
Boundary
2022 Base Year
SBT Boundary
2024 SBTBoundary
2024 Operational
Boundary
Greenhouse Gas Emission Intensity (Scope 1 & 2) (tCO
e/RMB 1million)
Product Carbon Footprint CertificateThird-party Greenhouse GasVerification Statement (2023)
Carbon NeutralityCertificate of Shanghai Ri Ming
Sustainable Development,Enhancing Corporate Governance
Appendix
Green Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout thisReport
Chairman'sStatement
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report
The Company has formulated internal policies such as the Control Procedure of Energy Conseation tocontinuously promote the construction of an energy management system. Using our years ofexperience in energy management, we organically combine energy management with intelligent parkmanagement, build and continuously optimize the construction of the Intelligent Energy Management
(IOE) platform, which effectively reduces the comprehensive energy consumption of each factory while
optimizing the allocation of resources and improving the efficiency of energy utilization.
Energy Management
Luxshare Precision adheres to the energy management principle of Compliance, Clean Production,Energy Eciency, and Continuous Improvement, formulates energy management strategies, adheres toenergy-saving and low-carbon production, carries out high-efficiency energy management, andactively explores the use of clean energy.
Optimizing Energy Use
IOE Platform Functionality
Realistic scenarios using digital twintechnology
Realize one-screen overview and one-keycontrol of equipment information
Real-time alarm linkage shortens workorder response time
Realize real-time monitoring and intelligentanalysis
Efficiently protect the safety of personneland electromechanical equipment
Optimize group control algorithm toimprove operational efficiency
Record detailed data log, making datatraceable
Dynamic management and real timemonitor of warehouse information
The Company has carried out extensive and in-depth discussions with various industry associations and groups on the topicof carbon emissions and applied its own experience in building a standardized carbon management system to theformulation of external standards. During the Reporting Period, Luxshare Precision participated in the preparation of group
standards led by the China Academy of Environmental Sciences and issued by the China Society for the Study andPromotion of Ecological Civilization, which helped small and medium-sized enterprises efficiently carry out greenhouse gas
accounting and disclosure work.In the journey of practicing low-carbon development, Luxshare Precision organizes a variety of low-carbon publicity activitiesto convey low-carbon concepts to employees, suppliers, partners, and the public, and encourages everyone to worktogether to create a green future.
Advocating Low Carbon Concepts
Focusing on the theme of "Green Transformation and Energy-saving Campaign" ofthe National Energy Conservation Awareness Week in 2024, Jinxi factory skillfullycombined public welfare and low carbon concept to carry out a series of lowcarbon activities.
"Green Transformation and Energy-saving Campaign" Series Activities
Called on employees to convert their walking steps to public welfaredonations through the "Donate Steps for Environmental Protection" activityto convey the idea of low-carbon travelLaunched the "Used Clothes Recycling" campaign and collected over 166 kgof used clothesOrganized an environmental protection and energy-saving knowledge contestto popularize low-carbon knowledge among all employees
Case | Jinxi Factory Organized "Green Transformation and Energy-saving Campaign" Low-Carbon Series Activities
Participated in the Preparationof the Group Standard Guideline
3D VisualizationEquipment Cockpit
Alarm and Work OrderEnergy Analysis and Optimization
Access Control and SecurityGroup Control Energy Saving
Warehouse SystemEquipment Log
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout this
Report
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report
IOE Platform Information Flow
Terminal Execution Level
Case | Dongguan Xuntao Applied IOE Platform to Efficiently Manage Energy UsageDongguan Xuntao introduced the IOE intelligent energy management platformto monitor the operation of the power distribution, water supply, aircompressor, and waste heat recovery system and applied the cloud intelligentcontrol system to the digitalization and automation management of the aircompressor station. This system has the functions of intelligent monitoring ofenergy consumption, automatic control of equipment operation, etc. Throughthe intelligent control of the air pressure station house, it improves the loadingrate of the equipment, enhances the stability and quality of the gas supply,improves the efficiency of the equipment operation and the effect of stabilizingthe pressure, and reduces the power consumption by 12%.
Cloud Intelligent Control System for Air Compression Station Room
By focusing on facility upgrading and transformation, process optimization, and other fields, Luxshare Precision has constructed an all-roundenergy efficiency improvement system to achieve double benefits of operation cost reduction and green environmental protection.Energy Efficiency Improvement
Air CompressorSystemNumberof Projects
Annual PowerConservation（MWh）Annual GreenhouseGas Emission Reduction
（tCO
e）
Summary of Energy Efficiency Retrofit Projects in 2024
Central AirConditioning
Exhaust Fanin Factories
Life and OfficePowerConsumption
ProductionPowerConsumption
Total
Air CompressorSystem
Central AirConditioning
Exhaust Fanin Factories
Life and OfficePowerConsumption
ProductionPowerConsumption
Total
35,41319,5026,9635,65463,397130,929
Air CompressorSystem56,609
Central AirConditioning31,262
Exhaust Fanin Factories
11,177
Life and Office
PowerConsumption
8,960
Production
PowerConsumption
101,427
Total
209,435
Communication
Gateway
DatatransmissionCommandparsingDataacquisitionCommandtransmission
Data RecordingReal-time databaseHistorical database
Computer Operation Level
Energy cockpitFactory cockpit
Abnormal Alarm
SystemMonitorAlarmManagement
System Operation Interface
PCData Analysis
Ice machineCooling tower
Energy Data Recordingand Analysis
Text WeChat
Mobile
Water pump
Air compressorVacuum pumpExhaust gas tower
BoilerElectricity meter
…
Sustainable Development,Enhancing Corporate Governance
Appendix
Green Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout this
Report
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report
Through a series of equipment upgrading and renovation projects, Luxshare Smart Manufacturing has significantly improved the productionenergy efficiency and reduced energy loss, with an annual energy saving of 1,532MWh and an annual carbon emission reduction of 954 tCO
e.
The magnetic levitation air-conditioning refrigeration/cooling pump motors were updated and iterated from Grade 3 energy efficiency (YE3) toGrade 1 energy efficiency (YE5), effectively reducing energy loss.
We installed a variable frequency drive, temperature sensors, and an automated control cabinet for the original 50Hz fixed-frequency air handlingunit motor, and integrated an automated control system. Following the upgrade, the motor automatically adjusted its operating frequency basedon real-time temperature variations in the zoned area, achieving optimized energy efficiency.
Adopting the principle of "eliminate, merge, reorder, and simplify", Merry Huizhouexplored the potential for optimization in the production workflow and optimizesthe production process by eliminating and merging redundant processes,simplifying complex processes, and reasonably switching the order of processes.During the Reporting Period, Merry Huizhou successfully completed 31 specialoptimization projects, and the energy consumption per unit of product output hasdecreased by nearly 60% year-on-year.
Zero Air Loss Blower Type Suction Dryer
Adsorption dryer renovation
A plate heat exchanger is added to utilize the low-temperatureenvironment to realize heat exchange between the cooling water towerand the heating, ventilation and air conditioning (HVAC) refrigerationsystem, enhance the indoor heat exhaust efficiency, and reduce theair-conditioning energy consumption.
Air-conditioning plate heat exchanger renovation
High-efficiency electromechanical water pump replacement
Central air-conditioning frequency conversion transformation
Air Conditioning Plate Heat Exchanger Device
We have implemented zero gas loss transformation on the existingsuction dryer and upgraded it to a blower type model, avoiding theloss of finished gas during the cold/hot regeneration stage of themicro heat regeneration adsorption dryer and achieving energyconservation and consumption reduction.
Case | Merry Huizhou Optimized Processes to Improve Energy Efficiency
Case | Luxshare Smart Manufacturing Carried Out a Number of Equipment Renovation Work to Help Energy Saving and Carbon Reduction
Electricity saving rate = (Electricity saving in the current Reporting Period/Total electricity consumptionin the previous Reporting Period) *100%.
In 2024, Luxshare Shanxi added anautomatic temperature control systemfor the circulating water pump of thehot water system in the factory,replacing the manual control methodin the past. By monitoring the watertemperature in real time andpresetting the temperature start/stopfunction, the water temperature isguaranteed, and at the same time,energy consumption and costs areimproved in various aspects. Afterremodeling, Luxshare Shanxi Precisioncan save 76MWh of electricityannually.Automatic TemperatureControl System
Case | Luxshare Shanxi Added Automated Control System for Precise
Power Consumption Control
As of the end of the Reporting Period, Luxshare Precision:
During the Reporting Period, Luxshare Precision:
Number of subsidiaries certified by the ISO 50001
Electricity saving rate
exceeded
8 ％
ISO
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious SocietyAbout thisReport
Chairman'sStatement
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report
Promoting energy structure transformation is a key strategy for Luxshare Precision to reach itscarbon-neutral goal. We have continued to expand the proportion of clean energy use andreduce greenhouse gas emissions through the layout of rooftop photovoltaic, construction ofenergy storage systems, and the purchase of green electricity and green certificates. As of theend of the Reporting Period, our rooftop photovoltaic capacity reached 150MW, achievingutilization rate of clean energy up to nearly 71%, exceeding the target of"50% of clean energy
use by 2025" for two consecutive years.In addition, the Company participated in the investment of the Green Energy Fund to promotethe development of high-quality clean energy projects. During the Reporting Period, theCompany acquired 62,276MWh of green equity through its investment in the Green EnergyFund.
Energy Structure Optimization
Utilization rate of clean
energy up to nearly
71 %
Total reduction of greenhouse gas emissions
1,527,650 tCO
e
Rida Intelligent Manufacture actively responds to the national energy transition and sustainable development strategy, laying out theconstruction of photovoltaic and energy storage projects. We make full use of the roof space of our factories to install photovoltaicpower generation systems to provide clean, renewable power for our factories and reduce our reliance on traditional thermalpower. As of the end of the Reporting Period, the total installed capacity of rooftop photovoltaic of Rida Intelligent Manufacture wasnearly 22MW.In order to enhance the ability to consume green electricity, Rida Intelligent Manufacture gives full play to the advantages of opticalstorage integration through the installation of energy storage power stations in the factory, accurately formulates the daily chargingand discharging strategy of the energy storage system, optimizes the energy structure, stabilizes the power output and ensures thestable operation of the production equipment. During the Reporting Period, the battery capacity of Rida Intelligent Manufacture'snew energy storage power station exceeded 6MWh, and the cumulative construction of energy storage power station batterycapacity exceeded 9MWh.
Energy Storage Power Station
Rooftop Photovoltaic
Case | Rida Intelligent Manufacture Laid Out Photovoltaic and Energy Storage Projects
Directly purchasedgreen electricity
1,603,210 MWh142,821 MWhTotal solar PVpower consumed
Procurement ofgreen certificate686,839 MWh
Sustainable Development,Enhancing Corporate Governance
Appendix
Green Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout thisReport
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report
Luxshare Precision attaches great importance to the management of waterresources, carries out water risk identification, and formulates action strategiesfor the management of water resources. We implement water conservationactions at the source, continue to promote water reuse, and carry outwastewater management, contributing to the construction of a resource-savingand environmentally friendly enterprise with practical actions.
We strictly comply with the Water Law of the People's Republic of China and theapplicable laws, regulations, and policies in the operational locations and haveformulated Water Resource Management Procedures, Luxshare Precision WaterManagement Commitment and Statement to regulate water management-relatedactivities at each of our sites.Luxshare Precision utilizes the Aqueduct Water Risk Atlas developed by theWorld Resources Institute to identify water risks at each of its operations,analyze and predict the challenges posed by water quality and waterinfrastructure conditions, and formulate water risk response plans based on therisk level.The Company has developed an intelligent water management system which issuccessfully operating at some of our sites. By applying this system, we canremotely monitor and manage water resources in real-time with precision,promptly handle abnormal water usage situations, and improve the efficiency ofwater resource management.
Water Resources andWastewater Management
Water Resources Risk Identification and Management
Environmental Risk Management
For detailed information on pollution control technologies, treatment methods, construction and operation of pollution prevention facilities, andimplementation results at our key pollutant-discharging entities, please refer to Section V of the 2024 Annual Repo. During the ReportingPeriod, the Company received no major administrative penalties or criminal liabilities related to pollutant emissions.
Intelligent Water Management System
Environmental Management
The Company strictly abides by the Environmental Protection Law of the People's Republic of China and other national and local environmentalprotection regulations and policies and has formulated internal procedural documents such as the Group-wide Environmental ProtectionManagement Procedure, the Control Procedure of Environmental Factor Identication and Assessment etc., so as to earnestly fulfill the mainresponsibility of the enterprise for the environment.
Over the years, Luxshare Precision has insisted on achieving business growth in an environmentally friendly manner and has promoted thedevelopment of a green manufacturing system through the continuous implementation of sustainable water resource management, wastemanagement based on the concept of maximizing the use of resources, and the continuous reduction of air pollutant emissions. At the sametime, we also pay active attention to the surrounding ecological environment and are committed to maintaining ecological balance andcontributing to sustainable development.
Implementing Green Manufacturing
Newly Green Factory awardedsubsidiaries were
Accumulative National Green SupplyChain Factory awarded subsidiaries were
During the Reporting Period,Luxshare Precision:
Establish an environmental factor identification program to ensure the comprehensive,correct, and effective identification of environmental factors in the whole process of theCompany's activities, products, and servicesConduct an annual comprehensive environmental factor review and update to ensure theeffectiveness of environmental factor identification
Formulate an environmental emergency plan and conduct regular annual emergencydrills for wastewater leakage, accidents at hazardous waste storage facilities, chemicalleakage, etc., to enhance the Company's ability to deal with environmental emergenciesEstablish a three-tier response mechanism to immediately carry out emergency rescueactivities in the event of an environmental incident and, if necessary, cooperate withexternal rescue forces and government departments in emergency rescue operations
Regularly conduct environmental audits to eliminate potential hazards and follow up ontheir rectificationFor key pollutant-discharging entities, internal real-time monitoring system is used toprovide early warning of abnormal emissions
Identification and Assessment of Environmental Factors
Environmental Monitoring and Auditing
Environmental Incident Prevention and Handling
OperationAssessmentManagement
Water QualityTestingManagement
OfficeManagementEnergy CostManagement
SystemOperationManagement
EquipmentManagementSafetyProductionManagementRemoteMonitoringManagement
As of the end of the Reporting Period,Luxshare Precision and its subsidiaries:
As of the end of the Reporting Period,Luxshare Precision:
Certified by ISO 14001 reached
Accumulative National, Provincial orMunicipal Green Factory awardedsubsidiaries were
Sustainable Development,Enhancing Corporate Governance
Appendix
Green Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious SocietyAbout this
Report
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report
AWS Water Management
Advocacy Post
Rida Intelligent Manufacture's Water
Protection and Source Purification
Campus Promotion Activity
Sustainable Water Management
Elevating and refining water resource management standards andcapabilitiesBoosting employee awareness on water conservationConducting eco-friendly energy-saving campaigns to raiseenvironmental consciousness among employees and the publicFostering green supply chain management
Aligning with AWS requirements and enhancing water resourcemanagement practices to obtain AWS certificationPosting water-saving logosPosting related promotional contentEncouraging supplier disclosure of data and removal of non-compliancerecordsEnhancing water resource utilization rate, reducing withdrawal andconsumptionControlling water consumption per unit of product
Developing water-saving technologies at the source and promotingwater reuse in productionEnsuring compliance with effluent water quality standardsFrequency of monitoring effluent water quality
Installation of monitoring devices in drainage areas, online monitoringat outfalls, and monthly third-party monitoringGuaranteeing adequate WASH provisions for employeesEnhancing WASH provisions for visitors
Continuous provision of suitable WASH facilities for employeesOngoing maintenance of visitor sanitation facilities
Improve the cleanliness and aesthetics of important water-relatedareas
Monitor the water quality around the factories regularly salvage thewater, and assist the relevant departments in treatment
The Company implements the concept of sustainable water management inaccordance with the requirements of the International Standard for SustainableWater Management issued by AWS. Our pilot subsidiaries have collected dataand analyzed risks and opportunities as required by AWS. Based on thefindings, we have established targets across five dimensions and implementedaction plans to improve water use efficiency.
Objectives
Sustainable Water Management Actions
Initiatives
AWS certified subsidiaries reached
As of the end of the Reporting Period, Luxshare Precision :
AWS Platinum Level Certification for Luxcase
ICT Yancheng, Rida Intelligent Manufacture,Shanghai Ri Ming, Jiashan Ri Shan
Water Balance
Water Quality
Important Water-related Areas
Water, Sanitation and Hygiene (WASH)
Water Management
Platinum-level certifiedsubsidiaries reached
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout thisReport
Chairman'sStatement
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report
Luxshare Precision has always strictly followed the Law of the Water PollutionPrevention and Control Law of the People's Republic of China and other laws andregulations and formulated the Operating Procedure of Waste Water, ExhaustGas and Noise Control to strengthen our wastewater management efforts. Westrictly conduct real-time wastewater discharge monitoring in full compliancewith regulatory requirements, mandating all factories to undergo at least oneannual third-party wastewater discharge monitoring to ensure compliance
while continuously tracking treatment progress.We are constantly upgrading our wastewater recycling and treatment systemsto increase the reuse rate of wastewater while strengthening the system'streatment capacity. In addition, we strengthen our wastewater management byenhancing equipment and piping inspections to prevent leaks.
Wastewater Management
Luxcase ICT Yancheng's Online Water Recycling
and Treatment Equipment
The anode line of Smart Manufacturing Changshu produces 4 types of wastewater, namely dyeing, chemical polishing, nickel-containing,and comprehensive, and we accurately remove the impurities by means of filtration of microfiltration, ultrafiltration, nanofiltration, reverseosmosis, and continuous electrode desalination so as to make the water meet the standard of reuse and realize 100% reuse of wastewaterfrom 4 types of wastewater, thus truly achieving zero-discharge of wastewater.
Luxis Factory is committed to improving the treatment efficiency and reuse rate of industrial wastewater, reducing wastewaterdischarge, and realizing efficient use of resources through a number of initiatives.
Luxis Beijing and Luxis Dezhou have installed additional wastewater depressurization and concentration devices to treat the highlyconcentrated cleaning wastewater generated from the cleaning process of surface mount technology (SMT) production lines intoconcentrated liquid and low-concentration wastewater. Among them, the concentrated liquid is disposed of harmlessly by outsourcing,and the low-concentration wastewater is qualified for discharge through biochemical treatment.
Improving Treatment Efficiency
Cutting Water Reuse
Organic Wastewater Recycling
Luxis Beijing and Luxis Dezhou collected the backwash water fromthe ultrafiltration device in the cutting water recycling system andreuse it in the cutting water recycling system. With the help ofreverse osmosis membrane fine filtration, the output meets theproduction standard of pure water and is directly used in the cuttingprocess, which effectively reduces the wastewater discharge.
In order to effectively reduce the use of fresh water and improve theefficiency of water recycling, Luxis Dezhou has carried out anorganic wastewater recycling project. After the organic wastewateris collected, it is sent to the biochemical treatment facility fortreatment by sand filtration, activated carbon filtration, RO reverseosmosis and other devices. The recycled water that meets therequirements is used for cooling tower makeup water.
Wastewater Treatment Station
Case | Smart Manufacturing Changshu Anode Line Achieved 100% Reuse of Wastewater
Case | Luxis Factory's Effective Wastewater Treatment Efforts
During the Reporting Period, Luxshare Precision:
Factories generatingindustrial wastewater
Factories achieved zero industrialwastewater discharge
The water reuse rate of the main production bases reached75%
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout thisReport
Chairman'sStatement
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report
Luxshare Precision implements meticulous waste management practices to properly handle all waste generated during operations. We activelypromote the zero-waste-to-landfill concept and explore innovative recycling approaches to support circular economy development andenhance resource efficiency.
Our waste management follows the principle of "classified collection, centralized storage, and unified disposal" in full compliance with Law ofthe People's Republic of China on the Prevention and Control of Solid Waste Pollution and other relevant regulations. We have established theWaste Control Operating Procedure to oversee every aspect of waste management from classification and storage to compliant disposal anddocumentation, minimizing environmental impact.
Waste and Recycling
Waste Control Process
Exhaust Gas ManagementOur Company has always strictly complied with the Law of the People's Republic ofChina on the Prevention and Control of Atmospheric Pollution and other laws andregulations as well as the emission standards of various regions in our operationsites. We carry out third-party air pollution tests in accordance with therequirements of the regulatory authorities, and the monitoring results are all incompliance with the national and local emission standards. Moreover, we stringentlymanage raw materials to guarantee the exclusion of ozone depleting substances asrequired by laws and regulations.
Luxshare Precision minimizes emissions in the production process from theperspectives of source reduction, on-site improvement, and end-of-pipe treatment.
Waste Management Procedures
Solid waste generated in the production process shallbe identified and classified in accordance with theNational Hazardous Waste Directo and the SolidWaste Identication Standard (GB- 34330) and othernational standards
Storage facilities shall be built in accordance with thePollution Control Standard for General Industrial SolidWaste Storage and Landll (GB-18599) and the PollutionControl Standard for Hazardous Waste Storage (GB-18597)to prevent waste from causing secondary pollution to thesurrounding environment, soil and groundwaterIn order to reduce the large amount of alcohol that needs to be used whencleaning equipment, Boshuo Electronics optimized the cleaning step to hot waterplus detergent wipe to replace the use of alcohol. Through improvement, we canreduce more than 2 tons of alcohol usage per year and decrease the emissions ofvolatile organic compounds (VOCs) from the source.Luxshare Xuancheng has set up a fully enclosed shield for the solder paste printingmachine, reflow soldering machine, and other equipment and collects gas throughpipelines to improve the collection efficiency of VOC and reduce unnecessaryescape of exhaust gas, and the collection efficiency of exhaust gas has beenincreased to 98%.
Source Reduction
Improvement of Exhaust Gas Collection Efficiency
Smart Manufacturing Changshu replaced the end waste gas treatment methodfrom secondary activated carbon treatment to catalytic combustion, which greatlyincreased the treatment efficiency to more than 90%, effectively enhancing thewaste gas treatment capacity.
Enhancement of End-to-End Management Level
Case | Luxshare Precision Carried Out Exhaust Gas Control Work
Storage
RecordCompliant disposal
Classification
In strict accordance with the requirements of theEnvironmental Protection Bureau, solid waste shall bedisposed by a qualified third party
Establish a solid waste log, and record key information inthe waste management process through an electronicinformation management system
The total amount of exhaust gas emissions was nearly
289 tons
During the Reporting Period, Luxshare Precision:
Sustainable Development,Enhancing Corporate Governance
Appendix
Green Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious SocietyAbout this
Report
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report
The waste release film generated by Lanto Kunshan's die-cutting process was originally classified asnon-recyclable waste and could only be incinerated. In 2024, Lanto Kunshan proactively sought recyclingpartners to reprocess waste release films into industrial plastic products, enabling resources to return to theindustrial chain and achieve an efficient recycling model.
Luxshare Precision actively implements zero waste to landfill initiatives and is committed to minimizing the impact ofwaste on the environment. The Company has set a 3-year target for the average waste conversion rate, promotedwaste reduction, recycling, reuse, and other effective transformation in strict accordance with the Zero Waste toLandfill certification standard (UL 2799) and cooperated with qualified service providers to ensure the propertransfer and disposal of waste. In 2024, the average waste conversion rate of our subsidiaries has already reached
88.18%, an important step towards achieving the target.
Zero Waste to Landfill
Hazardous waste
Waste conversion
and disposal
123,007 t
15,568 t
During the Reporting Period, Luxshare Precision:
Waste Disposal Methods
Case | Lanto Kunshan Optimized Disposal Mode, Turning Waste Release Film into Treasure
Accumulative UL 2799 certified subsidiariesreached
Conversion Pathways
Outside the Factory
Wastes NotConvertedConversion PathwaysWithin the Factory
Production Factory
Landfill
Incinerationwithout energy
recoveryNot EncouragedRecycling
Composting
Waste to energy(WTE)
Biofuel
AnaerobicdigestionReductionReuse
As of the end of the Reporting Period, Luxshare Precision :
Recycled135,538 t
Waste subject toincineration (with energy recovery)
13,762 t
Reduced
18,548 t
Waste subject to anaerobicdigestion1,550 t
Reused
14,778 t
Waste subject to composting3,168 t
Domestic waste
Non-hazardous waste
187,344 t
Total amount of waste generated
48,769 t
Sustainable Development,Enhancing Corporate Governance
Appendix
Green Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout thisReport
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report
Luxcase ICT Yancheng and Tsinghua University'sNational Graduate College for Engineers havejointly conducted research on topics related tozero-waste supply chains. The two partiesinvestigated and analyzed the entire lifecycle ofaluminum scrap generated during computercasing production and processing - spanning fromraw material procurement to product usage, scrapgeneration, treatment, and recycling. This studyprovides foundational support for establishingevaluation standards for zero-waste supply chainsin the 3C metal components industry, while alsooffering valuable references for advancingnational circular economy development andpromoting sustainable supply chain construction.
Luxshare Xuancheng collects copper scrap from productionlines and cooperates with third-party organizations to carryout copper scrap recycling and replacement. This initiativecan reduce the purchase volume of copper materials, lowerproduction costs, and realize the efficient recycling andreuse of copper resources. During the Reporting Period,Luxshare Xuancheng recycled a total of approximately 638tons of copper scrap.
Boshuo Electronics proactively integrates product quality withenvironmental stewardship through circular economyinitiatives. Currently, we have adopted printed circuit boardsmade of recycled gold and magnets that use 100% recycledrare earth elements in some of our products, and we arevigorously promoting the use of recycled tin in the soldering ofprinted circuit boards so that we can realize the ecologicalvalue of our products while safeguarding product quality.
In the wave of circular economy, Luxshare Precision actively explores therecycling mode of waste. We adhere to the "4R" principle
to reduce the use ofnon-essential materials throughout the entire process.Circular Economy
We adopt reduction and circular design approachesto minimize raw material consumption and explorethe application of recycled materials
We prioritize the use of recyclable materials, activelyseek alternative options for non-recyclable materials,and collaborate with suppliers to recycle reusablematerials
We implement internal recycling and reuse ofmaterials such as aluminum, copper, tin, rare earthmagnets, post-consumer recycled (PCR) plastics, andreusable polyester resin to reduce material input inthe production processWe use recyclable shipping containers andde-plasticize packaging materials to reduce plasticuse in product packaging
Defense Meeting of the Project
"4R" principle refers to "Reduce、Reuse、Recycle、Replace"
MaterialSourcing
ProductManufacturing
Shipping
Phase
Process
Design
Full Process Control of Materials
Case | Luxcase ICT Yancheng Joined Hands with Tsinghua University to Carry Out Research on Waste-Free Supply Chain Related Topics
Case | Luxshare Xuancheng Recycled and Replaced Copper Scrap
Case | Boshuo Electronics Continued to Expand the Scenarios for the Use of Recycled Materials
Sustainable Development,Enhancing Corporate Governance
Appendix
Green Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious SocietyAbout this
Report
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report
We integrate ecological protection into all aspects of corporate construction and business operations and strictly comply with the Environmental Protection Law of the People's Republic of China, the Convention on Biological Diversity, andspecific ecological protection regulations in domestic and overseas operational regions, and effectively fulfill the responsibility of protecting biodiversity. At the site selection stage of each operation site, the Company has passed a detailedinvestigation to confirm that the operation site is not within the scope of the red line of ecological protection and is in full compliance with the requirements of the red line of ecological.The company has established policies related to biodiversity conservation to manage production and activities in an ecological and biodiversity friendly manner. We maintain the ecological and natural balance of the operational site andsurrounding areas through waste, wastewater and waste gas testings, soil monitoring, rainwater testing, and regular maintenance of environmental protection facilities, safeguarding the beautiful home that animals and plants rely on forsurvival.
Biodiversity Conservation
Luxshare Precision is committed to being a guardian of biodiversity and contributing to the sustainable development of the ecological environment. We carefully lay out the green areas in our factories, actively carry out tree-plantingactivities, and build a rich natural landscape through the creation of garden factories to create a home for natural organisms to live and reproduce.In addition, we are actively concerned about the biodiversity of the surrounding area. Through a series of activities, we protect aquatic and terrestrial ecosystems.
The Water System in theJinxi Factory Attracts Wild Birds
Jinxi Factory LandscapingRida Intelligent Manufacture's VolunteersClean the Beach and Patrol of the River in Longyou
Bay Ecological Landscape Zone
Luxcase ICT Yancheng Participates in theQiandao Lake Basin Management Action
Case | Guarded Biodiversity, Luxshare Precision in Action
Beautify Factories EnvironmentRiver Basin Governance
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout thisReport
Chairman'sStatement
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report
Guided by the ambitious vision of "pushing 30% of our products into unchartedterritories in global industries within the next two decades," Luxshare Precisionpersists in innovation-driven development and technological commercialization. Werigorously safeguard the intellectual property rights of all stakeholders while activelyembracing clean technology opportunities and advancing green product upgrades.Concurrently, we maintain close alignment with industry trends and gain an in-depthunderstanding of customer needs. Through premium product offerings and service,we create differentiated value that fosters mutual success with clients, ultimatelyachieving long-term shared prosperity.
Continuous Innovation,Forging Excellent Products
Hazardous Substance and Chemicals ManagementInnovative Research and DevelopmentCustomer Relationship ManagementOpportunities in Clean TechProduct Responsibility
We have consistently prioritized forward-looking R&D investments and strategicallyaligned optimization of R&D management systems to drive technological innovation andaccelerate the commercialization of research outcomes. Simultaneously, leveraging arobust intellectual property management framework, we continuously strengthen patentportfolio development and risk mitigation practices. This enables a holistic approach tolifecycle protection and compliance governance of intellectual property assets.Luxshare Precision has established the Technology Committee to strengthen innovationsystem development, coordinate strategic allocation of technological resources,implement technology enablement initiatives, and cultivate talent pipelines for innovativeR&D. These efforts establish a robust foundation for sustained business growth.Furthermore, we have strategically positioned dedicated R&D centers across Shanghai,
Dongguan, Shenzhen, Xi'an, and the United States, continuously advancingplatform-based and intelligent innovation in products and services.
Pioneering Innovation and R&D
Innovation and R&D Management
Opening Ceremony of Luxshare Precision'sIntelligent Manufacturing Industry Academy
R&D System
To continuously attract and cultivate skilled R&D professionals withadvanced technical competencies, Luxshare Precision officiallyinaugurated the Intelligent Manufacturing Industry Academy in June2024. Through deep university-industry collaboration, the Academy haspioneered innovative pedagogical models and curriculum systems,formed a dual-qualified faculty team comprising enterprise experts andacademic professors, and invested in state-of-the-art intelligentmanufacturing training facilities. This initiative not only provides us withrobust talent pipelines and technological innovation momentum butalso accelerates industrial upgrading and transformation.
The cultivation of high-value patents is recognized as a central driving force for Luxshare Precision's R&D innovation. During the Reporting Period, weformulated and implemented the?High-Value Patent Cultivation Guidelines, systematically identifying patents or portfolios that demonstrateexceptional innovation quality, rigorous documentation standards, significant market potential, high economic returns, and the capacity tosubstantially advance technological progress, industrial competitiveness, and sustainable development.Concurrently, we conducted patent mining and cultivation initiatives through on-site visits to BG/BU and Intellectual Property strategy workshops toenhance commercialization efficiency. Guided by the?Incentive Regulations on Patents and Trade Secrets, we established a comprehensivemotivation mechanism, providing quarterly public recognition and monetary rewards to teams and individuals achieving outstanding results in patentapplications. This approach further stimulates innovation dynamism within R&D teams. During the Reporting Period, Luxshare Precision internallyreviewed and recognized 31 high-quality patent proposals and successfully filed 141 high-quality patent applications.
Case | Luxshare Precision Established Intelligent Manufacturing Industry Academy
Number of Patents in the Company
Other R&D Promotion WorkSystem ConstructionR&D
Project PromotionTalent Standard EvaluationAdvancedManufacturing
SMTConnectors
R&D System
Key Areas
OpticsAcousticsThermodynamicsCable
Main ResponsibilitiesTechnology Committee
Number of Newly Granted in the YearCumulative NumberTotal Number
7,1641,381
Invention
1,603
Utility Model
4,903792
Design
Sustainable Development,Enhancing Corporate Governance
Luxshare Precision 2024 Sustainability Report
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout thisReport
Chairman'sStatement
About LuxsharePrecision
In 2025：
Focusing on key clean technology domains, including new energy vehicles, system and technologies optimization, reuse and recycling,power management, and renewables, we have set clear R&D investment targets. We are actively advancing the development and
commercialization of clean technology products such as electric vehicle powertrains, data center cooling solutions, thermal managementsystems, and wireless charging technologies. Through these efforts, we continuously deliver energy-efficient products and solutions that
empower clients to achieve their sustainability goals.
Clean Technology Opportunities
Luxshare Precision has integrated the R&D and application of clean technology products into our strategic roadmap for sustainabledevelopment and business growth. Guided by a green product philosophy rooted in resource conservation and environmentalstewardship, we rigorously implement full lifecycle hazardous substances management to advance our green chemical transition.
Cultivating Green Products
Investment in clean technology R&D exceeded400million RMB
Target to increase investment in cleantechnology R&D to470 million RMB
During the Reporting Period, Luxshare Precision:
Utilize risk analysis maps to accurately pinpoint potential risk areasConduct market patent research to gain insights into the dynamicsof industry intellectual propertyConduct internal risk assessments and timely warnings of intellectualproperty risksCustomize intellectual property risk management measures accordingto the needs of various departmentsKeep a close eye on market trends and promptly identify and respondto infringement behaviorsAdhere to the principle of respecting the intellectual property rights ofall parties and properly handle potential risks
Beforedevelopment
DuringdevelopmentAfterdevelopment
Luxshare Precision strictly adheres to thePatent Law of the People's Republic of China,the
Copyright Law of the People's Republic of China,the Trademark Law of the People's Republicof China,and other relevant legal frameworks. In 2024, we proactively updated our internalgovernance documents, including the?Intellectual Propey Manual?and?the Intellectual PropeyManagement and Control Procedures, aligning with the revised?Guidelines for EnterpriseIntellectual Propey Compliance Management Systems(GB/T 29490). These measuressystematically fortify our Intellectual Property (IP) protection infrastructure.Guided by the principle of respecting all stakeholders' intellectual property, Luxshare Precisionimplements holistic IP risk management across the entire product development lifecycle, ensuringcomprehensive safeguarding of the Company's legitimate interests.
Intellectual Property Protection
Intellectual Property Risk Management Across the Product Lifecycle
During the Reporting Period, Luxshare Precision:
Trademark invalidation andopposition handled
24 cases
Patent landscape analysis conducted7 piecesZero major incident of trademark,patent, or copyright infringement
R
Clean technology related patents obtained were
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout thisReport
Chairman'sStatement
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report
Fuel Economy：
Specialize in enhancing energy efficiency in electric vehicles throughadvanced technologies and solutions. By developing optimized electricalenergy transmission systems and products, we improve chargingefficiency and safety performance, boosting energy utilization rates
Industrial Operations & Automation：
Design energy system optimization technologies and products to enablesmart optimization and control across various scenarios, including datacenters and consumer applications. Thereby, it ensures efficient energyutilization.
Power Management：
Adopt advanced power conversion modules to enhance batteryefficiency and reduce energy loss.
"Light Active" SeriesAchieving 40%-60% system power consumption reduction compared to conventional AOC optical modules, this series leverages advancements inchip balancing amplification, re-timing, and digital signal processing to extend copper cable application lengths. It further optimizes passive coppercables with smaller diameters and bending radii, streamlining cabling in data centers while maintaining performance.
Electric Vehicle Powertrain
Core component of new energy vehicles, integrating power battery, electric drive, and electronic control system. Compact design and high energyconversion efficiency enhance driving stability and energy efficiency.
Electric Vehicle Motor ControllerA core component of new energy vehicles, enabling efficient and precise control of motor speed and direction to support startup, acceleration, andbraking functions.
140W 2C1A PD Fast ChargerReducing the wear and tear on power sockets and lowering energy use through multi-protocol support (PD3.0, QC3.0, UFCS fusion fast charging),this charger enables simultaneous charging for diverse devices. Its design prioritizes both efficiency and user convenience, addressing growingdemands for high-power, multi-device charging solutions
Wireless Charging Base & Charging Series Products
Reducing carbon emissions by 0.013kg per product on average, this series utilizes post-consumer recycled plastic material through polymerizedmodification, achieving a recycled plastic PCR content of up to 98%.Wall Charger SeriesEach of the seven products in this series utilizes PCR plastic that has undergone polymer modification. One model boasts a PCR content of up to99%, thus effectively diminishing greenhouse gas emissions.Vehicle HarnessesThe entire series of harness assemblies is manufactured from environmentally friendly and recyclable materials conforming to standards GB/T30512-2014, RoHS, and REACH, well enhancing the utilization rate of resources.
Hydrogen Fuel Cell StackThe development of a 140kW graphite-based hydrogen fuel cell stack enhances reaction efficiency for medium-to-heavy-duty trucks' fuel cells,providing ample power for operating vehicles.
Photovoltaic Inverters
The photovoltaic inverter converts the direct current generated by the module into alternating current, tracks the maximum output power of thephotovoltaic array, and feeds its output energy into the grid with minimum conversion loss, contributing to an energy-saving, environmental friendlyand low-carbon life.
Titanium CRPS1300W Server Power SupplyAchieving 96% peak efficiency across 30%-60% load range (2023 EU Titanium standard compliant), this server power supply effectively reducesthe PUE of data center through optimized energy conversion performance.
High-Speed Interconnect AI Data CentreEnabling large-scale commercial deployment of 112 Gbps products and pilot-scale 224 Gbps systems, this solution integrates customizable cablebackplanes, Chip2IO high-efficiency connectivity, NPC connector modules, and AI cluster optical interconnects. These innovations enhance signalintegrity in high-speed links, significantly reduce power consumption, and extend transmission distances for next-gen AI infrastructure.
Recycling & Reuse：
Diligently identify and capitalize on opportunities for recycling andrepurposing waste materials. It pioneers innovative recyclingtechnologies for reused metals and plastics, thereby activelycontributing to a significant reduction in the raw material consumptionof our products.Solar Power：
Leveraging deep insights into photovoltaic power generation systemsand emerging industry trends, we strategically deploy clean technologyproducts and services encompassing solar inverters and energy storageinverters. This enables us to deliver stable, efficient, and securecustomized solutions that flexibly address diverse client requirements.Fuel Cells/Hydrogen ：
Devote to hydrogen production, storage, and transportation scenarios. Itdeploys optimized solutions for hydrogen generation, storage, andprovision, driving the transformation of the energy mix.
Core Clean Technology Products
EnergyEfficiency
CleanTechnology
Type
Product CategoryProduct Name & Description
RevenueContribution
PollutionPrevention& Control
Alternative
Energy
<20%
<20%<20%
<20%
<20%<20%<20%
<20%
Underdevelopment
Underdevelopment
Underdevelopment
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout this
Report
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report
Luxshare Precision is proactively advancing full lifecycle chemical managementacross our operations. Through close collaboration with suppliers, we rigorouslycontrol chemical substances present in manufacturing processes and productcompositions, striving to minimize environmental and human health risksassociated with chemical usage.
We have established a hazardous substance management system spanning theentire product lifecycle, aligned with the Hazardous Substance ProcessManagement (IECQ-HSPM) framework. This system enables risk identification and
tiered control of all chemicals present in products and associated manufacturingprocesses.
Green Chemicals
We continuously monitor evolving domestic and international regulations onhazardous substance management, as well as client requirements for restrictedsubstances. This includes compliance with the?Stockholm Convention onPersistent Organic Pollutants; the?EU REACH Regulation?(Registration,Evaluation, Authorization, and Restriction of Chemicals) and its Substances ofVery High Concern (SVHC) list; the?EU RoHS Directive?(2011/65/EU,2015/863/EU) and its amendments; the?EU POPs Regulation?(2019/102/EU); the?EU WEEE Directive?(2002/96/EC); the?California Safe Drinking Water and ToxicEnforcement Act of 1986; and China'sVolatile Organic Compounds (VOCs)Emission Standards. Through systematic identification and control of regulatoryrisks of all chemical substance in processes and products, during the reportingperiod we updated the?Restricted Substances Management Specications forMaterials and Finished Goods?to Version 36 in 2024, which now defines 80prohibited substances, 276 restricted substances, and 83 declared substances.
Lifecycle Management of Hazardous Substances
We apply the Principles of Green Chemist and follow guidelines like the General Principles for Ecological Design of Products and theManagement Standards of Restricted Substances of Materials and Finished Products. From the feasibility analysis stage to the product designstage, we comprehensively incorporate life - cycle environmental impact assessments into our considerations. We carefully evaluate the potentialhealth and environmental impacts of products during their usage and disposal phases. Thus, we actively adopt harmless chemical compositionsand support the hazardous substance free (HSF) philosophy. In addition, our product design specifications and material lists clearly convey thestrict environmental standards of our organization
We require suppliers to declare the full substance composition of materials through the GP module of the GSCM system and provide thenecessary inspection reports. The specialist is responsible for reviewing the environmental protection materials submitted by suppliers to ensurethat they always comply with the company's high standards for hazardous substance management, thereby guaranteeing the compliant inflow ofmaterials from the source. A comprehensive identification and supervision process has been established during the procurement process,achieving 100% coverage of all chemicals used in products.
Luxshare Precision comprehensively identifies the risks of hazardous substances in raw and auxiliary materials of different materials andconducts hierarchical management. According to the material properties and risk levels of raw and auxiliary materials, we set corresponding testitems and frequencies. For all incoming materials, we adhere to the principle of "no acceptance for non-conforming products" and strictlycontrol the incoming material inspection process. The laboratory systems of the company's main production bases have been equipped withstatistical process control functions. Abnormal values of substance concentrations will automatically trigger warnings, effectively improving theefficiency of managing the stability of incoming materials.
In order to prevent cross-contamination during manufacturing processes, our assessment takes into account the possibility of dangerouscompounds in machinery and equipment, tools, and auxiliary materials that may come into direct or indirect contact with the product during itsmanufacture. Before we adopt corresponding preventive measures, we regularly test the harmful substances in auxiliary materials and semi -finished products to avoid the pollution of harmful substances in the manufacturing process.
Prior to shipment, we conduct random sampling inspections on finished products. We verify their compliance before affixing environmentallabels and providing material composition statements and test reports as regulations and customer requirements. This ensures conformity withclients' standards and relevant legal statutes. Moreover, we disclose full formulations of products and the potential impact assessmentsthrough product labels, client portals, International Material Data System, China Automotive Material Data System, and other third-partyplatforms as requested.
Part of Newly Added Prohibited and
Restricted Chemical Substances
Whole Process Management of Hazardous Chemical Substances in Products
PyraclostrobinPigment Violet 29
p-Nitro diphenylamine1,3-Propanesulfonic anhydridePolyvinylidene fluoride resinHydrocarbon silicone oxide
ProhibitedSubstances
RestrictedSubstances
IncomingMaterial Inspection
MaterialProcurement
Process
Control
FinishedProduct Assurance
ProductDevelopment
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout thisReport
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report
Toxic Substances Control Act (TSCA) -First Batch of Risk Evaluation SubstancesNot yet included in the regulatoryframeworkNot yet included in the regulatoryframework
Not yet included in the regulatoryframework
REACH CoRAP List
Included in the prohibited listListed in the declared list and deployed aphase-out and replacement planListed in the declared list and deployed aphase-out and replacement planListed in the declared list and deployed aphase-out and replacement planListed in the declared list and deployed aphase-out and replacement plan
Pigment Violet 292,4-Di-tert-butylphenolp-Cresol andDCPD ButylatedProducts2,6-Di-tert-butyl-p-cresolHydrogenated rosinpentaerythritol ester
REACH SVHC List
Included in the restricted listMedium-chainChlorinatedParaffins (MCCPs)Restricted SubstanceRegulatory RequirementCAS No.Internal Management Requirement
Luxshare Precision has established the long-term plan to phase out all
chemicals of concern. We closely monitor the latest developments in domestic
and international regulations, align with the most stringent standards of keyglobal clients, and continuously identify opportunities to enhance our restrictedsubstance management. By formulating and actively advancing a series ofhazardous substance phase-out initiatives, we are committed to discoveringand adopting safer alternatives to reduce the reliance on substances ofconcern.
During production processes, auxiliary materials containing PFAS posedpotential contamination risks. Despite no regulatory mandate requiringPFAS phase-out, Luxshare Chuzhou proactively initiated substitutionprotocols based on risk management principles, preempting futurecompliance requirements. Through systematic process riskassessments, our team identified PFAS presence in acetate cloth andconductive cloth used for specific cable products. We activelyconducted material substitution screening, performing comprehensiveevaluations of environmental compatibility and technical feasibility. Thisled to the successful replacement of PFAS-containing materials withcertified PFAS-free alternatives, effectively mitigating contaminationrisks.
Phase-out and Substitution of Hazardous Substances andOutcomes of the Endeavor
List of Prohibited and Restricted Substances Managed Ahead of Regulatory Requirements
Case | Luxshare Chuzhou Implemented Hazardous Substance Phase-out for Eco-Conscious Cable Product Advancement
During the revision of the Management Standard for Restricted Substances of Materials and Finished Goods, we systematically identified emergingrisk factors and formulated internal mitigation strategies. For chemicals not yet formally regulated but with potential hazardous properties, we
implemented proactive controls by pre-emptively integrating these substances into our prohibited and restricted substance lists, establishingcompliance thresholds ahead of current regulatory requirements.
Proactive Management of Prohibited and Restricted Substances
85535-85-981-33-496-76-4
68610-51-5
128-37-064365-17-9
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious SocietyAbout this
Report
Chairman'sStatement
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report
As the critical bridge connecting suppliers and clients, we recognize that communicating clear material requirements to suppliers isan essential prerequisite for delivering high-quality green products. To ensure the procurement of materials complying withregulatory requirements, we have integrated green product requirements throughout the entire supplier management lifecycle. Byholding suppliers to the same stringent standards applied in Luxshare Precision's internal management systems, we drivecontinuous improvement in suppliers' hazardous substance management capabilities, thereby mitigating supply chain risks andadvancing collective sustainability performance.
Luxshare Precision has implemented the GSCM system's GP module to establish end-to-end digital management spanningfrom supplier material compliance controls to full substance traceability. In 2024, focusing on auxiliary materials posingdirect or indirect product contamination risks, we improved the GSCM system to enable process-driven and systematiconline management in pilot factories. This includes automated material requirement dissemination, digital submission ofenvironmental compliance documentation, supplier hazardous substance audit workflows, and real-time updatenotifications. These enhancements have significantly optimized green procurement efficiency while ensuring stringentquality assurance.
Hazardous Substance Management Requirements of the Supply ChainSchedule and Implementation Progress of Hazardous
Substance Phase-out and Replacement Plans
Hazardous Substance Management Requirements of the Supply Chain
Immediate phase-out implementation across all new products
Copper Alloy Materials
Wires/CablesCleaning Agents
All Materials
All Materials
All Materials
All Materials
All Materials
All Materials
All Materials
All Materials
Full ReplacementFull ReplacementPartial Replacement
Full ReplacementFull ReplacementFull ReplacementFull ReplacementFull ReplacementFull ReplacementPartial Replacement
Partial ReplacementSubstances of Concern in Components/Parts Exempted under RoHS DirectivePer- and PolyfluoroalkylSubstances (PFAS)Endocrine DisruptingChemicals (EDCs)PFHxA, its Salts, andPFHxA-Related SubstancesPFBS and PFBS-RelatedSubstancesTributyl PhosphateTriphenyl PhosphateDecabromodiphenyl Ethane
Antimony TrioxideLead and Its Compounds
VOC
ScheduledPhase-out/Replacement Year
Substance (Substance Group)
Affected Materials/
Product
Progress/Status
20192019202120222022202220232023202320252029
Entry Conditions
Change Management
Regular Audit
Replacement or Reduction
Require raw material suppliers to sign the Letter of Guarantee for Environmental Protection to ensure that rawmaterials, components, packaging materials, semi-finished products and finished products supplied to LuxsharePrecision meet the management requirements of the Management Standard for Restricted Substances of Materials andFinished Products
Timely communicate with and require suppliers to complete self-inspection, feedback and confirm compliance within theprescribed time limit after the Management Standard for Restricted Substances of Materials and Finished Products isupdated. Suppliers are required to proactively report changes related to raw material properties and other aspects inaccordance with the relevant change management requirements of the Company. They should also provide relevantinformation and samples as appropriate, so as to effect the change in the supply upon approval
Conduct regular audits related to the control of hazardous substances, check the product ingredient list and third -
party hazardous substance testing report, and send it to the Company's internal laboratory for hazardous substancetesting to prevent the non - environmentally friendly materials and products from flowing into the Company's productchain
Actively carry out the replacement or reduction of hazardous chemical substances, and phase out hazardous chemical
substances or replace them with safer chemical substances as soon as practicable
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious SocietyAbout thisReport
Chairman'sStatement
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report
In 2024, Luxshare Van Trung successfully rolled out the QMS system across all operations. This systemencompasses critical modules such as routine inspections, material management, and documentmanagement. By monitoring a variety of data points in real time during production, the system can preciselyidentify production bottlenecks. For instance, if equipment operates below the predefined efficiencystandards or if there are delays in material supply, the system triggers alerts. It then leverages automation tooptimize production schedules, ensuring a more rational allocation of both workforce and machinery. Thisreduction in manual intervention minimizes human error and enhances overall product quality. Furthermore,the QMS implements quality surveillance at every stage of production. Utilizing automated detection toolsrecording mechanism, the system swiftly detects and reports any quality-related issues. It also supportsadvanced traceability features, allowing for thorough quality tracking throughout the entire production cycle.
Automated SMT Line
Case | Luxis Beijing and Luxis Dezhou Introduced Automated Surface Mount Technology Line for Digital Integration in ProductionTraditional semiconductor SMT production lines face several drawbacks, including cumbersome fixtureassembly and disassembly processes, frequent system input requirements, extensive manual intervention,inaccurate quality sampling, and slow response times for exceptions. In 2024, Luxis Beijing and LuxisDezhou have introduced highly integrated and intelligent automated SMT lines. By incorporating advancedfeatures such as automatic identification, fixture auto-handling, real-time information upload, IoT deviceintegration, and optical inspection that replaces manual sampling, these factories have achieved digitalintegration across their production processes. As a result, product yield rates have improved by 0.15%.
Case | Luxshare Van Trung Optimized the End-to-End Quality Management System (QMS)
"Enabling Customer Success" lies at the heart of Luxshare Precision's operations, while "Relentless Mission" formsthe cornerstone of our trusted partnerships. We consistently deliver value through premium product quality,innovative solutions, and service excellence.
Strengthening Client Trust
In accordance with the Product Quality Law of the People's Republic of China and related regulations, combinedwith client requirements, Luxshare Precision has developed the Quality Manual and continuously optimizes ourquality management system covering R&D, manufacturing, and sales operations. Guided by facility-specificproduct positioning, process characteristics, and sustainability objectives, we established quality managementtargets and implemented a performance-linked quality governance framework. Key metrics such as massproduction yield rates, Outgoing Quality Control (OQC) defect rates, and Final Quality Control (FQC) batchrejection rates are cascaded to direct process owners with clear accountability and incentive mechanisms.Additionally, we conduct regular quality audits aligned with internal assessment criteria to monitor quality targetattainment across major production bases, driving enterprise-wide quality management excellence.
Luxshare Precision has implemented an automated production and intelligent inspection-based qualitymanagement model, integrating machine vision and intelligent patrol inspection technologies for qualitymonitoring and predictive alerts. Leveraging our quality management system, we achieve comprehensive datacollection and visual analytics across the entire product lifecycle.In 2024, we independently developed anintelligent cloud management system through big data and AI analytical models. This system integrates real-timequality tracking dashboards, AI-powered incoming material inspection, and intelligent automated placement lines,enabling end-to-end intelligent process control and further elevating our product quality managementcapabilities.
Product Quality Management
IATF 16949 certified subsidiaries reached
ISO 13485 certified subsidiaries reached
At the end of the Reporting Period, Luxshare Precision and our main productionbases were all certified by ISO 9001At the end of the Reporting Period, Luxshare Precision：
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout thisReport
Chairman'sStatement
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report
Luxshare Precision upholds the core value of "Enabling Customer Success",effectively engaging global clients through diversified communicationchannels and engagement models to enhance product and serviceexcellence. We employ multidimensional feedback mechanisms, includingannual customer satisfaction surveys and monthly performance evaluations, togain profound insights into client expectations. During the Reporting Period,we conducted 649 client surveys spanning critical dimensions: productquality, delivery reliability, service responsiveness, and cost-effectiveness. Ourstructured approach to feedback management, governed by internalprotocols such as the Operating Procedure for Information Communication, theHandling Procedure for Customer Complaints, and the Operating Procedure forContinuous Improvement, ensures timely and effective resolution of clientconcerns, thereby strengthening customer satisfaction and brand loyalty.Additionally, we established the Handling Procedure for Product Sales andReturn, which defines standardized recall implementation processes. Thisincludes systematic arrangements for product retrieval, repair logistics, andtransportation coordination, complemented by proactive remedial measuresto safeguard client rights and interests.
Customer Relationship Management
2024 Partial Client Awards
2024 Li Auto - Best Supply Award2024 Siemens – Best Supplier Award
At Luxshare Precision, we are committed to embedding quality awareness into everyaspect of employee development, reinforcing employees' understanding of qualityfrom hiring, pre-job training. We continuously host "Quality Month" initiatives,organizing activities such as quality system management knowledge competitions andquality improvement employee interviews to foster a company-wide focus on productquality. In 2024, we innovatively launched quality case workshops, analyzing typicalcases to enhance employees' sensitivity to quality issues and practical skills.
Responding to the national call for Quality Month, Luxshare Precision has continued our annual Quality Month campaign. Under the 2024theme "Quality Awareness Starts with Commitment, Luxshare Precision's Responsibility Translates into Action", we conducted knowledgeconsolidation and awareness campaigns across nearly 20 factories. Through integrated online and offline platforms, all factories organizeddiverse activities including knowledge competitions, knowledge distillation and case study development, and technical skills contests.These initiatives strengthened employees' quality awareness and competencies while fostering the preservation and application ofproduct quality expertise.
Quality Culture Development
Quality Knowledge Competitionat Suzhou Luxshare Technology
Quality Case Study Workshop
at Jinxi Factory
Visual Inspection Skills Contest
at Luxshare Huzhou
Case | Luxshare Precision Advanced Quality Culture Development
Quality control training delivered
88,279 person-timesTotal training hours
169,884 hours
During the Reporting Period,Luxshare Precision:
2024 Hikvision Outstanding SupplierAward – Best Quality Award
2024 Hikvision Outstanding SupplierAward – Green Supplier Award
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout thisReport
Chairman'sStatement
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report
As a trailblazer in intelligent manufacturing, Luxshare Precision actively responds to industry transformation trends by rigorously implementing theIndustry 4.0 strategy, driving the intelligent transformation of production operations through technological leadership.Advancing Intelligent Manufacturing
Our Manufacturing Operations Management (MOM) platform, built on modular architecture design, achieves holistic integration through theIntelligent Manufacturing Execution System (MES), Quality Information Management Platform, and Intelligent Asset Management System. Thisecosystem comprehensively coordinates our production operations, workforce management, and safety protocols. In 2024, we optimized the MOMplatform with targeted enhancements in asset utilization efficiency, maintenance response speed, and quality control capabilities, empoweringintelligent manufacturing advancements through end-to-end process refinement and operational synergy.
To extend platform capabilities into strategic depth, building upon the continuously upgraded technological foundation of our MOM platform, we
initiated a five-year plan for Intelligent Manufacturing in 2023, establishing an integrated management framework that synergizes platforms, data
ecosystems, and equipment networks.With proprietary innovation at our core, we have developed a dual-loop intelligent architecture encompassingboth hardware infrastructure and system applications. At the hardware level, our self-developed automated equipment systems drive intelligentiteration of production assets. On the systems front, we leverage AI-powered data infrastructure to seamlessly integrate material management withmanufacturing execution, forging a new paradigm of intelligent manufacturing characterized by dynamic perception and real-time decision-making.
Intelligent Manufacturing System
Luxshare Precision MOM Platform
ManpowerTransparencyManagement
KPI DigitalPerformanceManagementIaaSPaaSSaaSLuxshare QualityInformationManagement
Intelligent AssetManagementSystemIntelligent TotalProductiveManagement
Intelligent ManufacturingExecution SystemElectronic StandardOperating Procedure (E-SOP)
Client SystemIntegrationProject InformationManagement
ProgrammableLogic Controller
Test System
Digital Cloud
Service
WarehouseControl System
SMTEquipment
AutomaticGuidedVehicle System
TestEquipment
VendorManagement System
Luxshare Precision's 5-year Plan for Intelligent ManufacturingDeveloped three processes of engineering data, productionprocesses, and production informationImplemented 32 business processes around 12 productionscenariosAdvanced the application of Digital Twin in productionGradually achieved the full coverage of the WarehouseManagement System (WMS)
Cooperate in the interconnected operations ofmaterials, manufacturing and supplyPromote intelligent application forpremaintenance and repair, logistics pathoptimization, etc.
Promote the application of intelligent decision-making, intelligentproduction scheduling, quality analysis and other intelligentservicesDeeply explore the artificial intelligence field and apply machinelearning in the manufacturing process
Establish the interconnection of the underlyingequipmentImplement the precise distribution andimporting of logistics in unmanned workshopsEstablish lean standardization of productionlinesBuild the value of lean talent, cultivate lean talents for theenterprise, and assist suppliers in lean coachingPromote the application of 3D printing, graphic processing,machine vision and other intelligent technologies
2027
2023 (Accomplished)
2024 (Accomplished)
2025
2026
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious SocietyAbout this
Report
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report
Luxshare Precision has independently developed WMS and has beencontinuously expanding its application scenarios. By the end of thereporting period, we have implemented applications such asthree-dimensional automated storage and automated sorting, which havereduced labor costs and enhanced the efficiency of logistics andwarehouse management:
Stacker Crane Outbound RetrievalAGV Automated Transportation
Interface
Addressing storage challenges posed by heavy materials and frequentinbound/outbound operations, Lanto Bozhou implemented stacker cranesand automated guided vehicles (AGVs) to achieve three-dimensionalstorage and automated handling of cable materials. This innovationsignificantly enhanced storage capacity and transportation efficiency.
Lanto Bozhou Vertical Cable Warehouse Project
To resolve material delivery accuracy and production continuity issues,Luxshare Xuancheng deployed AGV systems with real-time integration intoproduction systems. This ensures precise material delivery to assemblylines, maintaining continuous and efficient production workflows.
Luxshare Xuancheng AGV Logistics Optimization Initiative
The bin warehouse maximizes vertical space utilization through automatedbarcode scanning for item retrieval and AGV route monitoring. Theseadvancements substantially improved sorting efficiency while reducinglabor costs.
Tiesong Factory Smart Bin Picking System
Case | Luxshare Electronic Kunshan Intelligent Equipment Management System
Case | Luxshare Precision's Intelligent Warehouse and Logistics Solutions
Case | Luxshare Precision Advanced Intelligent Manufacturing Through High-Precision Automated Manufacturing Equipment
Luxshare Precision has established our Intelligent Manufacturing System as the cornerstone to holistically advance innovation acrossproduction equipment, IT systems, and smart facility upgrades. We are committed to achieving end-to-end data interconnectivity andintelligent decision-making processes. Through developing smart factories that enhance data analytics and predictive capabilities, wecomprehensively empower operational decision-making, accelerating our enterprise-wide digital transformation journey.
Luxshare Precision has positioned hardware innovation as the breakthrough point for Intelligent Manufacturing advancement, achievingdomestic substitution through proprietary R&D of critical automation equipment such as 18-axis auto-alignment (AA) systems forsmartphone cameras and 12-axis AA devices for optical couplers. The 12-axis optical coupler AA equipment, an industry-leading dual-stationfully automated system, incorporates our proprietary global algorithms to achieve precise rapid coupling at optimal optical intensitypositions. This significantly enhances automation and precision level of the optical module production, driving intelligent manufacturingtransformation in optical communication manufacturing.
In 2024, Luxshare Electronic Kunshan focused on the digital upgrade of production technology and developed an intelligent equipmentmanagement system that covers the entire production process. This intelligent equipment management system, through its four majorfunctional modules: abnormal dispatching, predictive maintenance, intelligent equipment management, and spare parts intelligentmanagement, ensures precise and effective handling of equipment anomalies, prolongs the service life of equipment, reduces productioncosts, and improves production efficiency.
Intelligent Manufacturing Achievements
Overview of the Intelligent Equipment Management System
2.Alert
automatic
upload
9.Accessories
running data
5.Abnormal maintenance
8.Replacement of accessories
14. lssue an alarm
command
7. Get supplies
SpareParts Room
Flow Sheet
6.The system sends orders to the on-site
inelligent cabinet or spare parts room6 Upload accessory replacement information
4. Take orders
3.Abnormal automatic push
10.Data collection and
modeling analysis
11.Accessories
deteriorateStatus push
1.Device alarm
ProductionEquipment
Info Smart
EnterpriseWechat
MobileTerminal
AnalysisSystem
Maintenance
Personnel
PredictiveMaintenance
AbnormalOrder Delivery
Stock IntellienceManagement
Developing
Field Smart
Cabinet
DataBoard
12.Bad count
analysis bycommonality
13. Analysis
results sentTestingEquipmentEquipmentIntelligent Control
Server
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious SocietyAbout this
Report
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report
Luxshare Precision actively responds to societal expectations regarding theprotection of employee rights, continuously enhancing its talent appeal and fosteringa diverse and inclusive workplace. To achieve this, we have established a robustlabor risk management mechanism and developed a unique, diversified talentdevelopment strategy. We are also committed to optimizing our compensation,benefits, and performance evaluation systems to support the all-round growth of ouremployees. Additionally, we prioritize occupational health and safety, adhering to theprinciple of "zero fatal accidents and zero occupational diseases" as our baseline.
Employees Empowerment,Building a Platform for Dreams
Employee Diversity and Equal OpportunitiesProtection of Employee Rights and InterestsEmployee Training and DevelopmentOccupational Health and Safety
Employee Lifecycle Management Flowchart
Distribution Diagram for Employees in 2024
Luxshare Precision adheres to the principles of compliance, transparency,fairness, equality, and respect throughout its recruitment process. We provide
equal employment opportunities for all types of talents and have established acomprehensive management system that supports employees throughout theirentire career lifecycle, helping them achieve their personal values.
Employee ManagementLuxshare Precision employs diverse, open and transparent recruitment channels every year, including nationwide online recruitment, employeereferrals, university-enterprise collaborations, job fairs, and headhunting services, to attract a wide range of talents. Additionaly, strategic initiativessuch as the "Campus Talent Reserve Program" have been established to build a sustainable talent pipeline. In 2024, to enhance candidateexperience during the interviews and onboarding process, the Company launched an integrated recruitment project. This initiative streamlinesvarious recruitment platforms, improving operational efficiency and convenience.
To safeguard employees' rights and standardize retirement and rehire processes, the Company has established the Luxshare Precision Retirementand Rehire Management Measures. This policy outlines retirement criteria, procedures, benefits, and rehire regulations. Additionally, we haveintroduced retirement honor ceremonies to express gratitude and respect for retiring employees.
Furthermore, to enhance the experience for new hires,the Company introduced a series of engagementactivities for campus recruits in 2024, such as welcomepackages and online knowledge competition "How MuchDo You Know About Luxshare?"During the Reporting Period, Luxshare Precision alsoreceived several external recognitions as employer ofchoice, including 2024 China Model Employer by 51job,2024 China Best Employer Award by Zhaopin, 2024Employer Brand Management Model by Yonyou & Dayeeand Most Influential Employer by Haitou Network.
Attracting Excellent Talent
As of the end of the Reporting Period, the total number of employees was 278,103
MaleFemale
Mainland ChinaHong Kong,Macau,and TaiwanOverseas (excluding Hong Kong,Macau,and Taiwan)Aged 29 and belowAged 30 to 49Aged 50 and above
Newly hired graduates1,648DemandAnalysis
ChannelExpansion
Screening andEvaluation
OnboardingPreparation
OrientationTraining
MentorAssignment
Skills Enhancement TrainingLeadershipDevelopmentCross-DepartmentalCoomunicationsPerformanceEvaluation
CareerPlanning
InternalPromotion
ExitCommunication
KnowledgeTransfer
Exit Care
139,560
2,850
135,693
114,667
163,436
60,884
215,8611,358
During the Reporting Period, Luxshare Precision:
Recruitment
Phase
OnboardingPhase
DevelopmentPhase
Growth
Phase
Offboarding
Phase
Sustainable Development,Enhancing Corporate Governance
Luxshare Precision 2024 Sustainability Report
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout thisReport
Chairman'sStatement
About LuxsharePrecision
Luxshare Precision is committed to fostering a culture of friendliness, mutualsupport, equality, and care. We firmly oppose any form of discrimination andstrive to create an open and inclusive workplace. In 2024, Luxshare Precisionand its subsidiary, Enshi Luxshare, received certification as a diverse supplier.
At the same time, we advocate for a diverse and inclusive workplace, activelyhiring and supporting employees with disabilities. Through a series of assistancemeasures, we help them better integrate into the Luxshare Precision family. Bythe end of the Reporting Period, the Company had employed a total of 1,517employees with disabilities.
Diversity and Inclusion
Certificate of Diverse SupplierCertificate of Diverse
Supplier – Bona Fide Supplier
In December 2024, Luxshare Precision actively organized a theme month for the "International Day of Persons with Disabilities", focusing on"Empowering Leadership Among Persons with Disabilities to Build an Inclusive and Sustainable Future". This initiative aimed to foster a diverse,inclusive, and equitable corporate culture while optimizing internal policies and work environments to better meet the needs of employeeswith disabilities.
Additionally, the Company continues to improve its work environment and infrastructure. We improved life and service-related accessibilty signs andslogans in dining areas, dormitories, and rest zones within the factory premises, upgraded essential wheelchair-accessible facilities, and encouragedemployees to provide suggestions for further enhancements, creating a more comfortable, convenient, and inclusive working and livingenvironment.
In terms of training, Luxshare Precision offers multicultural courses such as communication skills and basic sign language to help employees masterhow to respect colleagues from diverse backgrounds, strengthen awareness of gender equality, and understand the value of a diverse workenvironment. In 2024, the Company introduced a specialized course on "Diversity, Respect, and Anti-Harassment," utilizing a integrated online andoffline teaching model. This program reached employees across facilities in seven areas, including Shanxi, Zhejiang, Taiwan, and Vietnam, aiming tofoster a harmonious and healthy workplace atmosphere.
Case | Luxshare Precision Launched "International Day of Persons with Disabilities" Theme Month
Zero
incident of employee discriminationDuring the Reporting Period, Luxshare Precision:
Barrier-free Facilities in the Factory Area
Lanto Kunshan’s "WeavingWarmth, Love Without Barriers"
Event
Luxshare Chuzhou "Drawing theBlueprint – Nazca Giant Drawing"
ActivitySmart Manufacturing ChangshuSimulated Darkness ChallengeSmart Manufacturing Jiangxi's"Walking with Love, Painting the
Future" Event
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout thisReport
Chairman'sStatement
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report57
Luxshare Precision has issued the Statement on Labor Human Rights Protection to affirm its commitment to abide by policy covers ILO coreconventions plus additional protections. Adhering to high international labor standards, the Company fully complies with laws and regulations whileactively implementing the Universal Declaration of Human Rights, the Guiding Principles on Business and Human Rights, the ILO Core Conventions, andthe Declaration on Fundamental Principles and Rights at Work. Additionally, we reference supplementary technical conventions such as the SocialSecurity (Minimum Standards) Convention, the Termination of Employment Convention, and the Protection of Workers' Claims (Employer's Insolvency)Convention. We also align with global initiatives such as the Responsible Business Alliance (RBA) Code of Conduct, the Corporate Responsibility toRespect Human Rights: An Interpretive Guide, the Global Sullivan Principles, and the Social Accountability 8000 (SA 8000) standard. These effortsunderscore our dedication to creating a safe, decent, and sustainable work environment for employees.
To strengthen oversight and auditing of labor risks, the Company hasdeveloped a Self-Assessment Questionnaire (SAQ) and specialized audit criteriaaligned with the RBA Code of Conduct. An annual labor risk assessment isconducted across all subsidiaries, followed by rolling specialized audits, withmonitored guidance provided to subsidiaries until all identified issues areresolved. In 2024, our labor risk assessments achieved 100% coverage, withspecialized audits spanning 14 regions, 20 subsidiaries, and over 100,000employees. All subsidiaries received an "A" rating in these audits.
Furthermore, we actively cooperate with clients for second-party audits,combining regular inspections with irregular spot checks. We also continue toadvance third-party audits by authoritative bodies.
Luxshare Precision has established a comprehensive labor risk management mechanism based on the Organization for Economic Co-operation andDevelopment(OECD) Human Rights Due Diligence framework. This mechanism follows an "Identify-Prevent-Monitor-Mitigate and Remedy" full-cyclelabor risk management process. In the event of labor disputes or rights violations, we promptly investigate and take legally compliant remedialactions to ensure timely resolution of potential risks or non-compliance issues.
Protecting Employee Rights
IdentificationPreventionMonitoringMitigation and Remediation
Labor Risk Identification and Mitigation
Labor Risk Management Mechanism
A Level80-100 PointsPassesB Level70-79 PointsConditionally PassedC Level
Below 70 PointsFailed
subsidiary passed RBA Validated Audit Program (VAP)
audit and obtained platinum-level certification
subsidiaries attained silver-level certifications
Conduct a comprehensivereview of labor-related risks,including forced labor, childlabor, harassment, anddiscrimination, and establishrobust systems to ensuredynamic identification andeffective response for eachtype of risk
Continuously enhanceprevention mechanisms andbuild a muti-layered riskcontrol system throughvarious measures such as IDverification, attendancesystem management, andrights protection trainings,effectively reducing laborrights risks
Implement a "three-tier auditmechanism" coveringinternal specialzed audits,client audits and externalthird-party audits (e.g. RBA),to ensure full oversight oflabor rights related issuesand maintain complianceand transparency
Immediately initiative investigationprocedures and hold responsibleparties accountable in the event ofrights violation or upon receivingcomplaints,and provide affectedindividuals with legal assistance,financial supplement andpsychological support. Preventsimilar incidents from recurringthrough trainings, disciplinaryactions, policy upgrades andinfrastructure improvements
Internal Audit Performance Rating Chart (100-point scale)
During the Reporting Period, Luxshare Precision:
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious SocietyAbout thisReport
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report58
The Company has developed and implemented a series of policies, including the Social Responsibility Management Manual, Employee Handbook, Recruitment Management Procedures, Non-Forced Labor Procedures, Child and Juvenile LaborManagement Procedures, Juvenile Worker Protection Procedures, Prohibition of Child Labor and Remediation Management Procedures , Oveime Management Procedures, Freedom of Association and Collective Bargaining Procedures,Anti-Discrimination and Harassment Procedures, and Diversity and Inclusion Management Procedures. These policies clearly define workplace conduct, prohibit illegal practices such as forced labor, child labor, discrimination, and harassment,ensure reasonable working hours and fair compensation, and respect employees' rights to freedom of association and collective bargaining.In the supply chain phase, Luxshare Precision regularly conducts CSR risk assessments and audits for suppliers to strengthen labor rights risk prevention and ensure proper protection of labor rights across the supply chain. For details onsupplier CSR management measures and audit results, please refer to the Environmental and Social Responsibility Management section.
Labor Rights Management System
Labor Rights Risk Management Measures
As of the end of the Reporting Period, no incident involving violations of freedom of association, collective bargaining rights, forced labor, illegal servitude, child labor, or any form of discrimination was identified in Luxshare Precision'soperations or supply chain.
Legally sign labor contracts, clearly define employment conditions,strictly prohibit the collection of deposits or withholding ofdocuments. Upon discovery of forced labor, promptly investigate,hold accountable, and provide support to those affected
Strictly enforce the principle of equal pay for equal work, ensuringthat no different compensation is given based on gender, age,nationality, etc., and that every employee's efforts are dulyrewarded
Employees shall not be dismissed without just cause, such as violations ofterms specified in the Employee Handbook. In the event of employmenttermination, legally provide corresponding dismissal compensation, allowances,or other separation benefits
Employment Termination Protection
Establish clear restructuring policies and ensure protection in cases ofcompany insolvency. During bankruptcy restructuring, comply with localregulations regarding the latest notification periods for operational changes,engage in friendly negotiations with employees, legally handle severance payand assistance with outplacement, and provide skill development trainings andassist re-employment
Responsible Restructuring
Strictly adhere to the Employee Handbook regulations, pay overtime wages orsubsidies on timeDo not mandate non-working hours activities, reasonably arrange overtime andrest periods, continuously monitor working hours, immediately correct anyissues found, and provide medical support to affected employees
Overtime Compensation
Timely pay employee salaries, commit to provide a living wage, andcontinuously improve the Company's welfare system to ensure a decent livingfor employees and their familiesLiving Wage System
AdditionalCore Convention
Forced Labor
Anti-Discrimination
Equal Pay for Equal Work
Regularly identify and assess occupational risks, take measures toreduce hazards, provide protective equipment, and promptlyhandle safety incidents while providing necessary support
Freedom of Association and Collective BargainingGuarantee employees' rights to freely organize or join unions andprovide resource supportPromptly intervene to investigate rights infringement incidents andprovide legal support to affected employees
Prohibit discriminatory practices at all stages of employment,immediately investigate related complaints, and providenecessary support to ensure a fair and just working environment
Eliminate all forms of harassment, regulate work discipline throughthe Employee Handbook and legally penalize violationsEncourage employees to report harassment incidents. Uponreceiving complaints, the Company will promptly investigate andprovide necessary support to those affected
Anti-Harassment and Abuse
Occupational Health and Safety
Strictly verify employee ages to ensure legal employment,encourage employees to report illegal child labor practices. Upondiscovery, immediately cease their work, arrange medicalcheck-ups, escort them back to their guardians, and assist themin continuing compulsory education
Prevention of Child Labor
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious SocietyAbout this
Report
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report59
Employee Promotion and Development ChannelsM6M5M4M3M2M1
P5P4P3P2P1
M5 Senior ManagementTraining
Key Account Marketing TrainingProgramResearch and InnovationTraining ProgramProject Management TrainingProgramOperation ManagementTraining ProgramSupply Chain ManagementTraining ProgramHuman Resource ManagementTraining ProgramCorporate-UniversityCooperation InstituteP3 P4 High Potential TrainingProgram
M4 Leadership TrainingProgramM4 Reserve TrainingProgramM3 ManagementAdvancement ProjectM3 Reserve TrainingProjectM2 TrainingProjectM1 Line SupervisorTraining Project
Rule of Training Operation ManagementRule of Internal Trainer ManagementRule of Learning Platform Management
Star Class
Competency
Center
Public Class
& LectureTalent Development System
Luxshare Precision places high importance on the integration and development process of its employees, offeringa variety of skills and knowledge development training programs and career development training covering allemployees (including part-time and contractors
), helping employees build core competitiveness.
Support for Training and Development
We have established a comprehensive dual-channel promotionsystem aimed at providing employees with diverse career growthpaths. Employees can choose to develop in either professional ormanagement tracks based on their personal capabilities and careerplans.Simultaneously, following talent development strategy, the Companyhas set targeted promotion policies in key areas such as reservecadre development, cross-level promotion for mid-level andgrassroots employees, and promotion for overseas' local employees,,driving the rapid growth of outstanding talents.
Employee Promotion and Development
Based on the Company's strategic and management development requirements and considering thecomprehensive capability development needs of different positions from the corporate level to the factory level,Luxshare Precision has built a comprehensive talent cultivation system.
Employee Training and Enhancement
Total employee training expenditure
10.71 million RMB
In 2024, Luxshare Precision did not employ part-time or contract workers.
During the Reporting Period, Luxshare Precision:
Total employee training hours
5,723,139 hoursTotal employee training participation
3,080,707 person-times
During the Reporting Period,Luxshare Precision:
Management trackpromotions2,570 peopleProfessional trackpromotions
10,756 people
Coverage
100 %
Three-StarTwo-StarOne-StarEntry-Level Employees
LineSupervisor
Management Track
Group Decision-Making LevelOperational Management LevelSenior Management LevelMiddle Management Level
Junior ManagementLevel
Professional Track
Intermediate Professional LevelSenior Professional Level
Expert LevelChief Expert Level
JuniorProfessional LevelClerk
IndirectEmployees
DirectEmployees
Mentor QualificationTraining ProgramLuxshare Precision Cultural Execution
Lecturer QualificationTraining Program
New Employee Orientation Training
Job Knowledge and Skills Learning MapLuxshare Lecture Hall Technical ForumCadre-Star Trainee Program
Leadership Development Path
(M Track)
Professional Development Path
(P Track)
System & MechanismResource Library
Trainer LibraryCourse LibraryCase Library
Platform Center
E-learning PlatformTalent Assessment PlatformExternal Resources Platform
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious SocietyAbout this
Report
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report60
The Company conducts comprehensive succession planning and developmentprograms at multiple levels to continuously strengthen their professional,management, and leadership capabilities, building a sustainable talent reservesystem.
In 2024, by leveraging the digital smart HR platform, the Company efficiently completed talent inventory using multi-dimensional data analysis,focusing on identifying high-potential talents to build an internal talent pool. Training resources were matched according to the characteristics ofdifferent talents to strengthen the appointment and development of high-potential reserve talents.
Talent Succession and Development Training
Suzhou Accessory Star ClassroomSmart Manufacturing Changshu P3, P4High-Potential Training Class
Luxshare Smart ManufacturingM3 Reserve Training Class
Jinxi Factory M4 Leadership Training Camp
Cultural Integration, Business andStrategy, Various Selection CoursesFinancial Essentials, Decision-Making,Team Building, Employee Development,Strategic Planning and ExecutionCultural Integration, Self-Management,Team Management, BusinessManagementThinking Skills, Professional Skills,Influence, Execution, Decision-MakingManagerial Culture Building, Transitionfrom Technical to ManagementRole Recognition, Basic Work CaseDiscussions, Knowledge CompetitionsProfessional Competence Enhancement,General Workplace Skills Improvement,Practical TasksIntensive Training, Internships, PositionPlacement, Executive Mentorship,Mentor Guidance, Professional Learning
Talent SuccessionPlanning and Development Programs
M5 Senior Management,M4 Leadership TrainingProgramM4 Reserve TrainingProgramM3 ManagementAdvancement ProjectM3 Reserve TrainingProjectM2 Reserve TrainingProjectM1 ReservedLine-supervisorTraining ProjectP3, P4 High-PotentialProgramsReserve Cadre - StarProgram
Training TargetCourse Themes
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout thisReport
Chairman'sStatement
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report61
In terms of professional capability cultivation, Luxshare Precision has launched multiplespecialized skill development training projects. By establishing a comprehensive online andoffline learning platform and resource library, the Company supports all employees in flexiblyand independently acquiring knowledge.
Specialized Skill Training
In 2024, Luxshare Precision organized four sessions of the“Overseas Cadre Training Camp”, with 127 cadres from regionssuch as Vietnam and Japan participated. The training coveredbusiness, regulations, culture, sustainability, and digital smartmanufacturing. To accommodate employees with different workschedules and time zones, the Company launched the“Cross-Border Assignment Online Training” program, coveringassigned employees in Japan, South Korea, Vietnam, Thailand,and Mexico, comprehensively enhancing the professionalcompetence of overseas cadres.
Overseas Cadre Training
Advanced Finance Training Program
Case | Luxshare Precision and Golden Collaborated on Financial Training
In 2024, Luxshare Precision collaborated with Golden to conduct a series of financialtraining projects covering key areas such as lean operation analysis and implementationimprovement for financial business partners, practical analysis of business tools, andstructured training workshops for budget compilation and reporting. These initiativesaimed to enhance the data analysis capabilities and process management efficiency offinancial personnel, providing precise financial insights to assist businessdecision-making and improve the integration of business and finance.The training project included 15 sessions, with offline training totaling 167 hours andonline learning platform cumulative learning hours reaching 1,623 hours, offering a totalof 563 courses.
Overseas Cadre Training Camp
Academic Advancement Program
Luxshare Precision provides support for degree programs or certifications for all employees (including part-time andcontractors
). In collaboration with external professional institutions, we offer tuition subsidies and incentives to support employees
in advancing their education.
In 2024, Luxshare Precision did not employ part-time or contract workers.
Onboarding Certification
Lean ProductionSix SigmaProject ManagementKey Account ManagementSupply Chain Management
Specialized Skill Training
University-Enterprise Collaboration
During the Reporting Period,Luxshare Precision:
employees registered in degree programs
Professional FoundationProfessional Training and Combat
Huarong Communication Degree Improvement Program Registration
Degree Improvement Forum at Jinxi Factory
Degree Improvement Forum at
Jia Shan Ri Shan
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout thisReport
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report62
Indirect Employees
Full Attendance Bonus:?Monthly bonuses for full attendanceOutstanding Employee Bonus:?Regular evaluations to recognize andreward top-performing employeesAdditional Allowances:?Performance-based bonuses and allowances aspart of variable compensation
Performance Management:?Unified daily performance managementAnnual Evaluation and Compensation Adjustment:?Conduct annualperformance reviews and adjust salaries accordingly
Luxshare Precision strictly adheres to local laws and regulations, establishing aperformance evaluation system covering all employees and conducting regularcompensation adjustments to ensure market competitiveness. Additionally, theCompany continuously improves its benefits system, offering diversifiednon-monetary benefits to enhance employees' recognition to the Company andtheir satisfaction.
To enhance employee health awareness and quality of life, Luxshare Precision actively organizes free health clinics. Subsidiaries such asLuxshare Jiangsu and Luxshare Xuancheng collaborated with local medical institutions to provide multi-department health services, includingorthopedics, traditional Chinese medicine, gynecology, and general medicine, helping employees identify and address potential health issuesand demonstrating employee care.
Case | Luxshare Precision Conducted Free Health Clinics to Care for Employees' HealthVariable Performance-Based Compensation
Material Non-Pay Benefits
Luxshare Xuancheng HealthConsultation and Free Clinic
Luxshare Jiangsu HealthConsultation and Free Clinic
Health Check-Ups for ElderlyEmployees at Luxcase ICT Yancheng
Enhancing Compensationand Benefits
To attract, motivate, and retain talent, the Company has established a
performance-based incentive pay structure covers all employees around theworld and employee stock plan for all employees
, providing market-competitivecompensation.
Furthermore, the Company offers various non-monetary benefits to allemployees, comprehensively caring for their well-being and striving to create a
stable, healthy, and harmonious work and living environment.
Compensation and Benefits System
Welfare and InsuranceSocial insurance
No less than 14 weeks ofparental leave (includingmaternity and paternity leave)
Employee children'seducation support
School shuttle bus andafter-school care servicesfor employees' childrenFree health clinics
Annual healthcheck
Psychological counseling
Pension insurance
Retirement benefitsMedical insurance
Group commercial insuranceGroup expatriate insurance
Incentive targets include eligible management personnel, core technical (business) elites,and grassroots employees.
Direct Employees
Family Support
Health Care
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout thisReport
Chairman'sStatement
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report63
Offer multiple benefits, including free accommodation,meal subsidies, and shuttle services, to alleviate theinitial financial pressure on new employees
Onboarding Support
Luxshare Precision's employee care system comprehensively covers all stages of employees’ careers. In 2024,
we ensured that at least one care project was implemented monthly in each BG/BU to achieve full coverage of allemployees, bringing care initiatives to the frontlines.
Employee Care
Adhering to a "people-oriented" management philosophy, Luxshare Precision has set up nursing rooms inmultiple facilities, including Lanto Bozhou, SpeedTech, Linkz Suzhou, and Smart Manufacturing Changshu,providing convenience and support for breastfeeding employees. This initiative not only enhances theemployee care and welfare system but also significantly boosts employees’ sense of belongings andsatisfaction, contributing to a warmer and more cohesive workplace ecosystem.
Case | Huarong Communication Established Employee Care Team
Case | Caring for Working Mothers: Luxshare Precision Set Up Cozy Nursing Rooms
To continuously refine the long-term employee caremechanism, Huarong Communication formed anemployee care team, building a multi-dimensionalcare network covering production workshops,employee rest areas, tea rooms, and dormitory livingareas. By establishing a regular feedback andresponse mechanism, the team ensures preciseidentification, rapid response, and proper resolutionof employee concerns, effectively enhancingemployee engagement and organizational cohesion,and fostering a harmonious and progressive culturalatmosphere.
Employee Care System
Nursing Room at Lanto BozhouNursing Room at Smart Manufacturing Changshu
Employee Care Team Visiting Plants
Nursing Room at SpeedTechNursing Room at Linkz Suzhou
Implement incentives such as labor union benefits,holiday gift packs, and an honors system to strengthenemployees' sense of belonging and loyalty
Motivational Engagement
Facilitate employee interaction and strengthen teamcohesion through social clubs, holiday events, andQixi Matchmaking activitiesSocial Connection
Offer dual career paths and comprehensive trainingprograms to support employee personal growthand career development
Career Development
Establish an Employee Care Center, employee forums,and hotline services to encourage employees to voicetheir opinions and ensure smooth internal communication
Smooth Communication
Organize fitness activities and sports competitionsto encourage employee to participate in physicalexerciseSports and Fitness
Provide specialized support including childcareassistance, education subsidies, financial aid, anddisability care for employees with special needsWarm Assistance
Host birthday parties, family days, movie screenings,and singing competitions to enrich employees' leisuretimeCultural Entertainment
Care for employees' health through health checks,psychological counselling and emotional managementservices
Health Assurance
Hold farewell ceremonies and present commemorativegifts to retiring employees to express gratitude andrespect for their long-term serviceRespectful Retirement
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout thisReport
Chairman'sStatement
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report64
The Company has built a diversified communication matrix to ensure effectivetwo-way dialogue channels between management and employees. Regularlylistening to and addressing employee concerns regarding business ethics,environmental and occupational health and safety, and other daily work and lifematters strengthens the alignment between organizational development andgrassroots concerns.
In 2024, to further improve employee communicationchannels and enhance efficiency, Luxshare Precisionlaunched an AI Intelligent customer service andintegrated it into the smart HR platform, providing 24/7support to employees. This service offers real-timeresponses to common inquiries across administrative,HR, mechanical and electrical, legal, procurement, CSR,and other dimensions, ushering in a new era ofconvenient and intelligent consultation for all employees.
Employee Communication
AI IntelligentCustomer Service
Luxcase ICT YanchengGarden Factory
Jinxi Factory ConstructsNew Covered Parking Lot
Luxshare Smart ManufacturingAutomatic Cleaning Equipment
Tiesong Factory NewEnergy Charging Stations
Employee Satisfaction Improvement Initiatives
Online
Employee Engagement and Satisfaction
Luxshare Precision conducts engagement and satisfaction surveys for all employees worldwide annually, and tracks performance over time andtakes action in response to create a comfortable and convenient work and living environment. The Company invites employees to take the role of
"role experience officers" and regular collects feedback through offline channels. In 2024, specific improvements were made, such as constructingcovered parking lots and equipping automatic cleaning devices, addressing various aspects of employees' daily lives.
Additionally, in 2024, the Company launched a star factory evaluation project across all facilities under the theme of "Continuous Improvement,Building a Harmonious Luxshare Campus". The project focuses on smart administrative campuses, upgraded administrative services, and energymanagement The Company promoted project excellent evaluation mechanism and plans to conduct 1-2 audits annually, either on-site or online, tooptimize employee workspaces and living environments, thereby enhancing employee satisfaction.
My VoiceGlobal Reporting HotlineIntegrity Hotline and EmailAI Intelligent Customer ServiceStar Community
Employee Care Center and HotlineSuggestion BoxProduction Line SupervisorsEmployee ForumsGeneral Manager Reception Day
Employee Communication Channels
Labor union federations
As of the end of the Reporting Period, Luxshare Precision:
During the Reporting Period, Luxshare Precision:
Total labor unions established
Employee requests andsuggestions received31,410
Case closure rate
100 %
Offline
SpecialInitiatives
Work ModulesRecruitment
On-siteManagement
WorkEnvironment
FactoryEnvironmentDiningAccommodationCommutingAuthenticity ofrecruitmentpublicityStandardizedinterview processOnboardingmedical checkitemsPaperlessrecruitmentClean andorganizedinterview venuesReasonableinterview site andflow planning
Restauranthygiene andenvironmentMeal queue timeoptimizationDiverse paymentmethodsFood qualityDedicated diningareas for pregnantemployeesRestaurant facilityupgrades
Dormitoryenvironment
Optimization ofdormitory occupancystandards
Dormitory clinicsetupDormitory facilityupgrades
Self-serviceapplication for specialneeds dormitories
Emergencyassistance systemin dormitories
Shuttle serviceconvenienceNew employeeshuttle services
New employeejob trainingNew employeeadaptationperiod
Internal workshopsignageWorkshop facilityupgrades
Factory walkingnavigationClinic setupWorkshop restareasEfficient/gentlesecurity checks
Clinic setupParkingconvenienceFeaturedcheck-in areasHoliday shuttleservicesShuttle interiorhygieneShuttle safety
Departure shuttleservice for resigningemployees
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious SocietyAbout this
Report
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report65
The Company is committed to creating a vibrant and cohesive work environment by organizing a variety ofemployee activities to strengthen emotional connections and foster a positive corporate culture.Employee Activities
On June 24, 2024, the Luxshare Cup Global Relay event kicked off in Dongguan under the theme "OneDream, One Luxshare". By the end of the Reporting Period, the event had reached eight overseas countries,including Vietnam, Japan, and the United States, with 10 global stops, receiving enthusiastic participationfrom employees worldwide. As a global enterprise, Luxshare Precision aims to unite employees from diversecultural backgrounds, enhance global team cohesion, and promote the Company's corporate culturethrough this initiative.
Luxshare Cup Global Relay Event – Vietnam Nghe An Stop
Luxshare Chuzhou Family Day Event
Luxshare Electroacoustic Family Day Event
Luxcase ICT Yancheng Family Day Event
In 2024, 14 factories under Luxshare Precision, including Luxshare Electroacoustic, Luxcase ICT Yancheng,and Luxshare Chuzhou, hosted Family Day events, attracting over 430 families and more than 1,400participants. Under the theme "Together with Family, Together with Love", the events featured parent-childinteractions, factory tours, food sharing, and talent performances, strengthening the bond between theCompany, employees, and their families, and enhancing their sense of belongings and identity of thecorporate culture.
Case | Luxshare Precision Hosted Family Day Events
Case | Luxshare Precision Hosted Luxshare Cup Global Relay Event
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious SocietyAbout thisReport
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report66
Luxshare Chuzhou Teachers' Day Event
Smart Manufacturing Jiangxi
Teachers' Day EventLuxshare Suining Teachers' Day Event
Case | Luxshare Precision Hosted Tree-Planting ActivitiesCase | Luxshare Precision Celebrated Teachers' DayAhead of Teachers' Day in 2024, facilities such as Luxshare Suining, Luxshare Chuzhou, and SmartManufacturing Jiangxi hosted diverse celebratory events to express gratitude to instructors, demonstratingthe Company's commitment to talent development and social responsibility.
Luxshare Xingning Tree-Planting ActivityLuxshare Smart Manufacturing
Tree-Planting Activity
Merry Suzhou Tree-Planting ActivityLanto Kunshan Tree-Planting Activity
In alignment with national green development strategies, facilities including Luxshare Xingning, LuxshareSmart Manufacturing, Merry Suzhou, and Lanto Kunshan organized tree-planting activities. These initiativesimproved the ecological environment of the campuses, increased green spaces, raised environmentalawareness, and encouraged employees to actively participate in environmental protection efforts.
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout thisReport
Chairman'sStatement
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report67
Luxshare Precision integrates occupational health and safety management into every aspect of our business operations, continuously optimizing theEnvironment, Health, and Safety (EHS) management system to create a work environment with "zero fatal accidents and zero occupational diseases".
Ensuring Occupational Health and Safety
EHS Digital System Dashboard
The anode production line at Luxcase ICT Yancheng poses significantsafety risks due to high temperatures and highly toxic chemical materials.To address this, Luxcase ICT Yancheng introduced a smart AI videosurveillance system to monitor the operational status of overhead craneson the anode production line. The AI technology detects the presence ofhuman-like objects within the crane's movement range. Since the system'simplementation, no safety incident occurred in the risk area, furtherstrengthening the safety management.
Case | Jinxi Factory Implemented EHS Digital System
Case | Luxcase ICT Yancheng Implemented Smart AI Video Surveillance System
The EHS electronic system of Jinxi Factory has achieved controllable risksthrough visualization, integration, early warning, traceability, and automation.The system covers modules such as the facility safety committeeorganization, hazard management, and risk source management, supportingautomatic hazard tracking, fire safety, and dual-control management.Additionally, the smart fire safety feature enables online monitoring andreal-time alerts for water pressure, flow rate, and liquid level in the fireprotection system, ensuring a safe and healthy working environment foremployees.
Luxshare Precision strictly complies with laws and regulations such as the Work Safety Law of the People’s Republic of China and the OccupationalDisease Prevention and Control Law of the People's Republic of China. We have established and implemented an occupational health and safetymanagement system that covers all employees
and workplaces. The Company has developed unified standards, including the Group EHS Manual,Group Occupational Health Management Procedures, and Group Incident Management Procedures, to provide comprehensive occupational health andsafety protection for employees.The Company's EHS Management Committee oversees EHS matters and has formulated the Group EHS Management Committee OperationManagement Procedures to ensure strict implementation and detailed management across subsidiaries. The committee includes employeerepresentatives, forming an efficient centralized management structure that enhances the scientific rigor and transparency of the management system.
Luxshare Precision has established an EHS intelligent management platformto standardize control measures and reporting processes. The platform
leverages a digital management system to monitor the execution efficiency ofEHS-related tasks across all facilities and establishes a standardized evaluationmechanism, driving the Company's EHS management toward systematic,intelligent, and standardized upgrades.EHS Management System
Responsible for overall planning ofthe Company's EHS-related work
Applies to all employees and other workers who are working at Luxshare Precision premises (such as suppliers and contractors, etc.).
EHS Management Committee Structure
Listen to the reports on EHS work bythe Director-General of EHS
Fully responsible for EHS work at the facility level, including leading BG/BU EHSinspectionsCollaborate with the Group EHS Director-General to implement EHS management tasksEnsure the implementation of EHS measures and review funding allocations
During the Reporting Period,Luxshare Precision:
Work-related injuries decreased by
24 % year-on-year
Zerowork-related fatality took place
Invested in occupational health andsafety management approximately300 million RMB
Establish and continuously improve the EHS management systemDevelop and improve management system documentsHold quarterly EHS meetings and coordinates overall EHS workFormulate EHS inspection plans and standards, conduct audits, andfollow up issue resolutionCoordinate and command emergency response efforts, activatingemergency procedures as needed
Board of Directors
EHS Officers of Facilities
EHS Management Committee
Audit GroupPublicity GroupLegal Group
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout thisReport
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report68
Luxshare Precision has formulated the Group EHS Audit Management Measures and the Hazard Identication andRisk Assessment Control Procedures, proactively identifying, investigating, and managing hazards by consideringfactors such as safety management, disaster risks, and production layout. We implement graded management ofEHS incident risks, enabling dynamic risk monitoring and conducting EHS audits to prevent related incidents.
In 2024, Luxshare Precision conducted on-site EHSaudits at 23 subsidiaries, including Luxcase ICTYancheng and Luxshare Chuzhou, following theCompany EHS audit rules. Through a closed-loopmanagement approach of "prevention-processcontrol-continuous improvement", the Companysystematically strengthened its risk prevention andcontrol capabilities.
EHS Risk Identification and Response
EHS Audit Mechanism
Mixed Gas Supply Station2024 Capital EmergencyManagement Innovation
Case Award
Case | Luxis Beijing Implemented Hydrogen Supply Safety Renovation
Case | Luxcase ICT Yancheng Implemented Full-Process Digital Control for Titanium Scrap
In 2024, Luxis Beijing identifiedsafety distance risks between thehydrogen supply station andinternal/external roads at the originalgas mixing station. To resolve this,Luxis Beijing implemented innovativemeasures by switching from on-sitegas mixing to direct supply of inertnitrogen-hydrogen mixed gas fromsuppliers, effectively eliminatingsafety distance issues andflammable/explosive risks. Thisinnovation earned the BeijingEmergency Innovation Case Award.
Titanium scrap may undergo chemical reactions and combust or explode when exposed to heat or openflames, posing safety hazards. Luxcase ICT Yancheng has established a full-process digital control systemfor titanium scrap, covering cleaning and transfer, oil drainage and cooling, briquetting, storage, andoutsourcing. Key indicators such as titanium scrap weight, transfer time, and storage time are monitored tocomprehensively enhance safety control capabilities.
Implementation of EHS policies
EHS audit of the
CompanySpecial EHS audit
External auditFacility self-inspection
EHS Management Committee
Facility
Incident handling procedures
Safety education and trainingProduction equipment hazards
and rectificationAudit Contencts
Reportrectificationmeasures, plansand progresswithin 3 workingdays
Regularly trackhazardrectification
Titanium Scrap Transfer Vehicle Control System
Titanium Scrap Removal System
Weighing System
During the Reporting Period, Luxshare Precision:
domestic and internationalsubsidiaries completed auditsSpot checks conducted
Supervised the completion of
686 rectifications
Identify hazard
Audit Forms
Entity and
Implementation Process
Electronic chips are installed on dedicated titanium scrap transfer vehicles to monitor entry and exit times,routes, and other data in real time. Alerts are issued for overstays or route deviations.Sets management threshold after comparison theoretical and actual titanium scrap generation, reportsanomaly notification in time, and generates daily reports on titanium scrap and briquette quantities.Records the weight of briquette transport vehicles entering empty and exiting loaded, with full processtracking via CCTV systems.
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious SocietyAbout this
Report
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report69
In 2024, Luxshare Precision conducted comprehensive EHS training foremployees at all levels, from senior management to operators, as well assuppliers and contractors.
The Company conducted emergency drills on themes such as evacuation,environmental emergencies, and more, targeting major EHS risk sources likefires, environmental pollution, hazardous chemicals, and mechanical injuries,effectively improving employees’ emergency response capabilities.
EHS Training and Drills
Luxshare Hubei Fire Rescue Drill
Luxshare Van Trung Dormitory Fire Drill
Smart Manufacturing Jiangxi Fire Skills Competition
Xiexun Jiangxi Drone Firefighting
Red Cross First Aid Training
Luxshare Xuancheng collaborated with the Xuancheng RedCross Emergency Rescue Training Center to provide firstaid training. 48 participants learned theoretical and practi-cal first aid skills, including CPR, bleeding and bandaging,and fracture fixation, through a hybrid online and offlinemodel. Upon assessment, they received certificates issuedby the Xuancheng Red Cross Emergency Rescue TrainingCenter.
Case | Luxshare Precision Hosted Fire Safety Month Activities
Case | Luxshare Xuancheng Conducted Red Cross First Aid Training
In 2024, Luxshare Precision actively organized Fire Safety Month activities across domestic and international facilities. Through quizzes, skillcompetitions, interactive games, and practical drills, employees' fire safety awareness and emergency response skills were enhanced.Additionally, fire drills, skill training, facility inspections, and educational courses were conducted to further strengthen safety skills.
During the Reporting Period, Luxshare Precision:
Total employee EHS training participations exceeded
920,000 person-times
Total suppliers and contractors EHS training participations reached14,000
Total employee EHS training hours exceeded
1.77 million hours
Safety Philosophy and
Skills
Occupational Healthand EnvironmentalProtection
Fire Safety
Chemical SafetyHazardous OperationsMechanical Safety
Safety Training Categories
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout thisReport
Chairman'sStatement
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report70
Division of Duties in Work-Related Injury Handling
Luxshare Precision is committed to strengthening EHS incident management processes. All BG/BU supervisors are required to sign an EHS
Management Responsibility Letter, clarifying their responsibilities to ensure rapid reporting and response through the EHS management system inthe event of an incident. Relevant regulatory authorities are notified promptly based on the severity of the incident, enabling timely improvements.
EHS Incident Emergency Response and Management
Incident Investigation and Handling Process
Luxshare Precision has established multiple procedures, including the IncidentManagement Procedures, Health and Hygiene Management Control Procedures,and Occupational Inju Management Measures, to create a comprehensiveprocess for handling occupational injuries and emergency incidents, ensuringtimely and effective resolution of health and safety issues. Additionally, theCompany provides a 24-hour medical room to offer necessary medicalassistance to employees in need.
Occupational Injury Management
An incident occursReport to EHS managerof the factoryReport in the incident system
Major incidentsGeneral incidents
Notification
Approve report
Notification
Evaluate severity of incidentInvestigate incident andanalyze cause
Investigate incident and analyze cause
Issue preliminary report of the incidentReview incident report
Confirm improvement effectDetermine and implementimprovement measuresIssue report of incident handling
ChairmanEHS Committee of
the CompanyFactory
IncidentDepartmentAdministrationEHS
Employees
HR
During the Reporting Period, Luxshare Precision:
Completed EHS Management ResponsibilityLetter signing rate for BG/BU supervisors
100%
Evacuate and protect employeesReport the incident within 2 hoursAssist in incident investigationImplement corrective actions
Handle occupational injury reportsInvestigate and analyze incidentsTrack corrective actionsAudit safety training
Handle occupational injury reportsArrange medical treatment and follow-upsReimburse medical expenses
Handle occupational injury reportsFile occupational injury claimsUpdate progress on injury handlingReport occupational injuriesEvacuate from high-risk areas
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious SocietyAbout this
Report
Chairman'sStatement
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report71
Equitable Treatment of Small and Medium-Sized EnterprisesResponsible Supply Chain ManagementCommunity Engagement
Luxshare Precision adheres to our mission of "Committed to advancingcutting-edge technology, fulfilling the ambitions of our global partners." Byestablishing a robust supply chain management system and fostering aresponsible business ecosystem, we deepen our investments in ruralrevitalization and social welfare initiatives. Through collaboration with supplychain and community partners, Luxshare Precision drives sustainabledevelopment and remains steadfast in building an inclusive, harmonious, andsustainable future.
Close Collaboration,Contributing to a Harmonious Society
9,263
7,179
8,277
2,084
Collaborative Value Creation
Luxshare Precision is committed to developing a supply chain managementmodel that balances environmental, social, and economic benefits. We upholdhigh-quality, green, and responsible supply chain partnerships, integratingsustainability assessments into procurement decisions and daily suppliermanagement to drive collective industry progress.
To systematically mitigate supply chain risks and ensure business continuity, wemanage suppliers across their entire lifecycle through a three-phase framework
"development access, tiered management, and evaluation and audit". In 2024,we enhanced our risk heatmap by implementing origin tracking for criticalelectronic materials, enabling rapid aggregation and correlation of materialorigins, specifications, and supplier data. This upgrade strengthens our capacityto identify and mitigate risks posed by natural disasters and geopoliticalconflicts.Additionally, we plan to collaborate with third-party platforms to refineearly-warning mechanisms for at-risk suppliers, further mitigating supply chainrisks’ operational impacts.
Supply Chain Management System
Number of Suppliers in 2024
Categorized by Region
Categorized by Type
Development Access
Tiered Management
Luxshare Precision strictly evaluates supplier qualifications in accordance with the Supplier Management Operating Procedures, the Electronic
Material Supplier Admission Mechanism, and other procedures by the ISO-certified internal auditors. Furthermore, we implement baseline capability
surveys across critical dimensions, including production testing capabilities, technical process competencies, quality control, and environmentalcompliance management. Suppliers must hold at least 1 quality management system certification and 1 social responsibility system certification forinclusion in our preferred supplier list.
Luxshare Precision seeks partners who share our values. During the onboarding phase, suppliers are required to sign critical agreements, includingthe Supplier Code of Conduct Acknowledgment Letter of Integrity Commitment for Supplier, and Environmental Assurance Letter, formallycommitting to uphold our ethical business standards and environmental and social requirements.We implement a tiered management system for qualified suppliers, conducting monthly, quarterly, and annual evaluations through our SupplierRelationship Management(SRM) platform. Performance-based tier classifications determine collaboration frameworks, enabling us to gain precise,real-time insights into supplier capabilities and performance, allowing targeted supply chain optimization.
At least certified in one of ISO 9001, IATF 16949, andISO 13485
Long-term Partnership, Co-research, Priority Procurement, and More Resource SupportRequired to provide an improvement report, with corrective results to be tracked, and may be subjectto on-site audits if necessary; Supplier qualification will be revoked if two consecutive audits are failedNo contract renewal or new contracts awarded; Required to suspend supply and provided withguidance for improvement; If all improvements are implemented, supply will be allowed andmonitored continuously, otherwise, supplier qualification will be revoked
ISO 14001, ISO 45001, SA 8000, RBA-VAP or third-party social responsibility system certifications of other categories
Certified in ISO 9001Certified in IATF 16949 or has established an IATF 16949 certificationintroduction plan
Total number of suppliers
Chinese suppliersOverseas suppliers
Service providersSuppliers of rawand auxiliarymaterials
Requirements of System Certification for Supplier Admission
Tiered Supplier Management Standards
Quality Management System Certification
Social Responsibility System Certification
Grades in Performance AppraisalManagement Measures
Consumer Electronics
Grade A/BGrade CGrade D
Automotive ElectronicsISO 9001, IATF 16949, ISO13485, QC 080000, SONY GP, or third-party quality system certifications of other categories
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout thisReport
Chairman'sStatement
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report73
Suppliers violating Luxshare Precision's IntegrityPoliciesMaterial fraudulent practices include supply ofcounterfeit/adulterated materials, cost-cuttingthrough inferior substitutes, and unauthorizedmaterial substitution without approvalMajor breaches of trust include collusive bidding orbid rigging during tenders, violation of procurementcontracts, and failure to fulfill contractual deliveryobligationsSuppliers failing two consecutive annual auditswith unresolved non-conformances
Evaluation and AuditSupplier TrainingTo ensure supply chain compliance and high-quality development, LuxsharePrecision conducts annual supplier audits through integrated online and onsitemethod. In 2024, we formally implemented a Supplier Blacklist Mechanism.Suppliers subject to integrity violations, fraudulent activities, or ethical breacheswill be added to the blacklist, and receive relevant management andpunishment. All blacklist decisions and supplier disqualifications aretransparently communicated via the SRM platform, ensuring full accountability.
We systematically enhance supplier capabilities through diversified engagement formats including one-on-one coaching, business review sessions,specialized training programs, thematic workshops, and annual supplier summits. Collaborating with suppliers to identify optimization
opportunities, we empower them to strengthen comprehensive sustainability competencies in environmental governance, social responsibilityfulfillment, and business ethics development. This collaborative approach drives synergistic advancement of supply chain competitiveness.
Supplier Blacklist Mechanism Assessment Dimension
During the Reporting Period,Luxshare Precision：
on-site supplier training sessionsAccumulative on-site participantsexceeded
AssessmentDimension
"Blacklist"BehaviorsIntegrityFraudulentPractices
Honesty
Others
Case | Luxshare Precision Hosted 2024 Southern China Supplier Summit
On July 6, 2024, Luxshare Precision convened the 2024 Southern China SupplierSummit under the theme "Collaborative Innovation, Shared Future", gatheringover 700 representatives from approximately 300 suppliers. The summitstrengthened partnerships through integrity compliance sessions, excellenceawards ceremonies, sustainability achievement showcases, and procurementstrategy briefings, fostering collaborative business growth and innovation whileestablishing a platform for in-depth dialogue. We presented a comprehensiveoverview of Luxshare Precision's sustainability progress, outlining specificrequirements for suppliers in data accounting, carbon reduction initiatives,energy structure transition, and CSR implementation. These efforts significantlyenhanced suppliers' understanding and operational capabilities in sustainabilitypractices, accelerating the supply chain's transition toward low-carbonoperations and inclusive practices.
2024 Southern China Supplier Summit
Topics of Supplier TrainingSystemoperationprocess
WastemanagementSustainablewatermanagement
Conflict minerals
management
EHS
Collaborateprocurementand delivery
Diversityconstruction
andrequirement
CSRmanagement
HazardoussubstancesmanagementAnti-corruption
and business
ethics
Carbonemissions and
energymanagementSuppliersmanagement
procedures
updates
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious Society
About this
Report
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report74
Environmental and Social Responsibility ManagementLuxshare Precision has deeply embedded environmental and social responsibility management into our supply chain management framework,empowering green and low-carbon transformation across the value chain through strategic influence.
Guided by global standards including the UN Guiding Principles on Business and Human Rights and the RBA Code of Conduct, we formulated theSupplier Code of Conduct Acknowledgement, requiring all suppliers to sign and comply with its requirements as well as applicable local laws andregulations where it operates. Any violations of these provisions may jeopardize ongoing collaborations and result in termination of partnerships.We conduct supplier CSR risk assessments and audits via a hybrid online-offline approach based on the Supplier Audit Checklist, continuosulyenhancing supplier's CSR management capabilities. Leveraging the CSR module within our Green Supply Chain Management (GSCM) system, weachieve digital and systematic execution of supplier data collection, risk evaluation, and audit processes.
Supplier CSR Management
Audit Contents
RectificationItems CompletedChild laborForced laborDiscrimination and disciplinary measures
Free association and communicationWorking hours and remunerationDiversity management
Management systemRegulatory and client requirementsSupplier managementResponsible procurement (conflict mineralsmanagement)
TrainingCommunicationEmployee feedback, engagement,and appealsCorrective action process
Environmental permits andreportsWater resource managementAir pollution
Energy conservation andemission reductionWasteNoise
Hazardous substances
Business integrityNo improper benefitsFair trade, advertising, and competitionIdentity protection and anti-retaliation policy
Information disclosureIntellectual property protectionPrivacy protectionEqual business, advertisementpublish and competition
Fire safetyOccupational safetyEquipment safety and health
Emergency planIndustrial hygienePrevention and control ofoccupational diseases
Physically demanding workPublic hygiene, food, andaccommodation
During the Reporting Period, Luxshare Precision:
The number of suppliers thatunderwent CSR audits
1,436
The suppliers that completedon-site CSR audits
The rate of new suppliers thatunderwent CSR audits
100 ％No major
CSR risk was found in suppliers
LaborManagement
Business Ethics
EnvironmentalManagement
ManagementSystem
OccupationalHealth and SafetyManagement
Audit Criteria
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious Society
About this
Report
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report75
Targets and Commitments in the Green and Low-Carbon Commitment
Gradually increase renewable energy use percentage, transition 100% of LuxsharePrecision-associated production to renewable energy by 2030Annually disclose pollutant release and transfer registers (PRTR) and carbon emissionsdata via the IPE platform
Supplier 1: Waste Heat Recovery of Air Compressor
Supplier 2: Transformation of Machine Lighting Strips
Supplier 3: Application of Air Conditioning Intelligent Control System
Supplier 4: Installation of Rooftop Photovoltaic Panels
For suppliers newly admitted after 2024, the base year refers to the first year of the transaction happened with Luxshare Precision.
The waste heat recovery of the air compressor is used to supply hot water in the living area of the facility.It can save approximately 250,000 kWh of electricity per year, and the annual emission reductionexceeds 155 tCO2e.The lighting inside the production line machines is changed from fluorescent lamps to lighting strips.After the improvement, the power efficiency is increased by about 58%. It can save approximately210,000 kWh of electricity per year, and the annual emission reduction exceeds 130 tCO2e.The central air-conditioning refrigeration station is renovated, and through the intelligent control systemand cloud networking system, it can automatically sense the indoor cooling air in real time, therebyreducing the use of the cooling water tower. It can save up to 330,000 kWh of electricity per year, andthe annual emission reduction exceeds 205 tCO2e.Photovoltaic solar panels are installed on the rooftops of the facility. The photovoltaic power generation isused to supply power to the switchgear room. The total annual power generation is approximately 1.1million kWh, and the annual emission reduction can reach 685 tCO2e.
Case | Selected Cases About Suppliers' Energy Conservation and Emission Reduction
Green and Low-Carbon Supply ChainLuxshare Precision is committed to collaborating with suppliers to build a green and low-carbon supply chainecosystem, sharing expertise and resources to minimize environmental impacts across product lifecycles. By theend of 2024, we established supply chain Green and Low-Carbon Commitment and set relevant supply chain
targets commitment. Moving forward, we will progressively engage core suppliers to sign and implement thesecommitments, accelerating industry-wide sustainable transformation.
We consistently leverage our net-zero impact insupply chain management by conducting on-sitegreen and low-carbon investigation, guidingsuppliers to strengthen carbon emissionmanagement, implementing energy-savingprojects, and encouraging active participation incarbon inventory. In collaboration with IPE, welaunched the Zero Carbon Supply Chain Initiative,incentivizing suppliers to disclose emissions datathrough IPE platform. In 2024, we upgraded ourGSCM system with automated raw materialcarbon accounting, significantly improving Scope3 data accounting accuracy and efficiency.Achieve a 6% year-on-year reduction in absolute carbon emissions related to LuxsharePrecision's business by 2032 (base year
: 2024)
Luxshare Precision has partnered with IPE for consecutive years. Leveraging its Blue EcoChain platform, weprecisely and efficiently acquire supply chain's environment performance and dynamically monitor the supplychain's environmental violation records, further driving PRTR disclosures. We provide suppliers with tailoredtraining to enhance environmental management capabilities, jointly advancing green supply chain development.
During the Reporting Period, Luxshare Precision:
Corporate Information TransparencyIndex (CITI) overall ranking
11th place
Provided on-site green and low-carbon relatedinvestigation and coaching for50 suppliers
CITI industry ranking
5th place
Assisted 110 suppliers in removingof environmental violation records
Promoted 239 suppliersto disclose the PRTR information
Suppliers promoted to disclose their carbonemission information on the IPE platform was
Facilitated suppliers' energy conservation of
33,013 MWh
During the Reporting Period, Luxshare Precision:
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious Society
About this
Report
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report76
Responsible Minerals SourcingLuxshare Precision does not directly engage in the procurement and use of mineral ores. However, the materialsand components necessary for our production may potentially contain mineral components such as 3TG, cobalt,and mica. We have joined the Responsible Minerals Initiative (RMI) initiated by the RBA and committed toadhering to international guidelines such as the OECD Due Diligence Guidance to ensure that all materials used inour products come from socially and environmentally responsible procurement channels.
We regularly update our management systems, including the Conict Minerals Management Measures, definingthe workflow for managing conflict minerals like 3TG and cobalt from three dimensions: supplier qualification, duediligence, risk assessment and mitigation. We require all suppliers to comply with the RBA Code of Conduct,
ensuring that 3TG minerals are sourced only from SORs certified as conformant by RMAP.
Systematic Management Mechanism
Conflict Minerals Management Process
Selection Stage
Conflict minerals managementadvocacy and compliance
Identify suppliersthat may be involvedin the use conflict minerals
Sign the Supplier Code of Conduct Acknowledgment, etcAll credentials are met
Promote warehousing andfile building of the supplier
Supplier DueDiligence
Risk Assessmentand Mitigation
Initiate due diligence
High-risk suppliers
SORs attainedconformant statusSORs not attainedconformant statusConduct investigationin conjunction withRCOI program
Develop and implementimprovement plans until SORsare attained conformant statusIdentify potential countries oforigin for mineral materials inproducts
Filling of duediligenceresultsDistribute, collect, and reviewsurvey questionnaires through theGSCM system
Initiate risk assessmentbased on due diligenceinformation
Non high-risk suppliers
Specialized coaching
Regular training
Trigger CSR audit for projectscontaining conflict minerals
Implement risk mitigation plans untilverification is completed
Filling and closing
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious SocietyAbout this
Report
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report77
We continue to carry out RCOI work, strengthening the identification and management of source risks, andhelping suppliers establish responsible mineral management procedures that meet the standards of LuxsharePrecision. By combining the RMAP certification audit results with the RCOI tools provided by RMI, we conductinvestigations on 3TG in the supply chain. By comparing the aggregated SORs information with the RCOIdatabase, we have identified the country location of the 225 SORs that provide 3TG to the Company's suppliers,and recognized the potential countries of origin for 3TG minerals in Luxshare Precision's supply chain, as shownin the figure on the right.
Based on due diligence and RCOI investigation results, we accurately assess and define the risk levels of oursuppliers. For high-risk suppliers, we require them to either complete RMAP certification for non-compliant SORswithin a specified timeframe or remove them from the supply chain. In the meantime, we provide specializedguidance and further carry out CSR audits that include conflict minerals evaluation indicators. We continuouslyfollow up, assess, and audit suppliers' progress in SORs certification and mineral traceability until all SORsinvolved in the supply chain are verified as compliant before closing the case. For non high-risk suppliers, we willconduct regular educational training to continuously improve their conflict minerals management capabilities andawareness.
225100 %
100 %
100 %100 %100 %
Due Diligence
Risk Management
Luxshare Precision adopted the Conflict Minerals Reporting Template (CMRT) and the Extended MineralsReporting Template (EMRT) provided by RMI to conduct due diligence on suppliers involving 3TG, cobalt, andmica. In 2024, we initiated CMRT surveys for 2,051 suppliers involving 3TG, achieving a 100% response rate; wealso initiated EMRT surveys for 1,033 suppliers involving cobalt and mica, with a nearly 100% response rate. By theend of the Reporting Period, 100% of the 3TG raw materials involved in all our products came from SORscertified as conformant by RMAP.
Australia, China, France, Madagascar,Sierra Leone, Spain, Thailand, etc.
Australia, China, Indonesia, Laos,Malaysia, Mongolia, Namibia, Peru,Portugal, Spain, Vietnam, etc.
Benin, Canada, Chile, Guyana, Papua NewGuinea, the Philippines, Sweden, Uzbekistan,Japan, etc.
Australia, Brazil, China, Malaysia, Mongolia,Portugal, Spain, Thailand, the UnitedKingdom, the United States, etc.
100 %
traced to the country of origin across allproducts containing 3TG raw materials
3TG SORs Certified as Conformant by RMAP in Luxshare Precision's Supply Chain
Potential Countries
of Origin
Tantalum sourced fromTin sourced from
Gold sourced from
Tungsten sourcedfrom
Total
TinTantalumTungsten
Gold
As of the end of the Reporting Period, LuxsharePrecision:
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious Society
About this
Report
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report78
Batik Workshop
Donating the Charity Beds
Loading the Charity Beds
Case | Shanghai Ri Ming Donated the Charity Beds, Supporting Rural Education Initiatives
Case | Luxshare Precision Launched Farmer Support Campaign
Case | Suzhou Luxshare Technology Organized Tie-Dyeing Classes to Promote Excellent Traditional Culture
Revitalizing Rural AreasLuxshare Precision remains deeply committed to societal impact, activelyengaging in and organizing initiatives such as supporting agriculturaldevelopment, promoting rural cultural heritage and advancing rural education,
aimed at fostering distinctive cultural industries, improving rural livingconditions, and collectively advancing the vision of rural revitalization.
In August 2024, upon understanding of the inadequate living conditionsfaced by students at Cuoka Primary School in Xinlong County, SichuanProvince—specifically the lack of beds—Shanghai Ri Ming swiftly respondedby delivering 257 sets of beds to the school within 12 days. This initiativeaimed to enhance the educational environment in the rural area. Embodyingthe philosophy of "weaving a net of love to spread warmth,"Shanghai Ri Mingprovided direct support for the children's development, actively contributedto advancing rural education, and empowered rural revitalization throughthese meaningful actions.
To support the steady growth of farmers' income, several subsidiaries of Luxshare Precision have launched initiatives to procurelocal agricultural products, thereby assisting farmers in expanding their sales channels and fostering rural economic development.
In 2024, to address farmers' surplus vegetables in Caibuzhuang,Changjiang Town, and Rugao City, Ruida Intelligent Manufactureimplemented a "field investigation - targeted procurement - continuousassistance" mechanism and organized an agricultural support activitytitled "Bringing Farm Produce into the Park, Luxcase SupportsAgriculture in Action," purchasing a total of 800 kg of vegetables. Thiseffort helped local farmers achieve a sustained increase in income.In November 2024, Luxshare Chuzhou actively participated in thegovernment's consumption assistance system by joining the"Revitalization Consumption Assistance, Helping Farmers IncreaseIncome, and Warm Hearts" campaign. Aiming to promote ruralrevitalization and boost farmers' income, the Company purchased2,250 kg of rice from Xinxing Village, Dashu Town, and QuanjiaoCounty. This initiative supported the development of localcharacteristic agriculture.
In August 2024, Suzhou Luxshare Technology activelysupported the promotion of intangible cultural heritageas part of rural revitalization efforts. The Companyinvited a master artisan specializing in the traditionalbatik technique to conduct an immersive workshop.During this event, employees had the opportunity toengage directly with the artistic process, creating theirown unique batik pieces. This initiative aimed to deepenemployees' appreciation for traditional culture andfoster a broader awareness and valuation of intangiblecultural heritage within the organization.
During the Reporting Period, Luxshare Precision:
Total investment in rural revitalization
10.35 million RMB
Rida Intelligent Manufacture Restaurant Supports Farmers by ProcuringVegetables
Luxshare Chuzhou Rice Purchase Assistance Program
“Bringing Vegetables into the Park, LuxcaseSupports Farmers in Action” Theme Activitity
Luxshare Chuzhou Purchased Rice
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious SocietyAbout this
Report
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report79
Luxshare Nghe An Organized a Condolence Event
The China Charity FederationAwarded a Public Welfare Certificate
Old Clothing Recycling
Taihan Precision Organized a Comfort Visit Event
Case | Luxshare Precision Organized Post-Disaster Condolences Across Various Vietnam FactoriesCase | Luxshare Electroacoustic Organized "Clothes with Love" Old Clothing Recycling Charity Event
Pooling CompassionLuxshare Precision is committed to the principle of social responsibility and value sharing. The Company actively implementsdiverse community and volunteer initiatives, including old clothing recycling, disaster relief, blood donation, and support forvulnerable populations. Through these efforts, Luxshare Precision contributes to fostering a more harmonious and inclusivesociety.
In September 2024, Vietnam experienced the devastating impact of Typhoon Yagi, severely endangering the lives andproperty of the local population. Responding swiftly to this crisis, Taihan Precision, Luxshare Nghe An, Luxshare VanTrung, and the Luxshare Vietnam Gwangju Factory—initiated comprehensive disaster relief efforts, mobilized bothpersonnel and resources to provide financial assistance and deliver essential supplies, including food, clean drinkingwater, clothing, and medical provisions, to those affected by the typhoon. These efforts ensured that the fundamentalneeds of the impacted communities were adequately addressed during this critical period.
By the end of December 2024, Luxshare Electroacoustic had successfully implemented the"Clothes for Love" old clothing collection campaign, amassing over 300 kilograms of usedclothes. These donations were directed to the "Earth Station Public Welfare Recycling"organization, for the "One Piece of Paper for Love" public welfare project spearheaded by theChina Charity Federation. Luxshare Precision effectively promoted environmental conservationsuch as waste minimization and proper garbage categorization through waste paper and oldclothes donation. Furthermore, this initiative extended vital support to children afflicted withcongenital heart defects from economically disadvantaged families and individuals diagnosedwith echinococcosis in Tibetan regions.
By leveraging our internal resources and capabilities, we support vulnerable social groups, including low-income families andcommunities affected by disasters, thereby advancing public welfare programs.
During the Reporting Period, Luxshare Precision:
Total investment in public welfare and charities was
3.41 million RMB
Number of volunteers engaged
3,747 person-times
Total volunteer hours served
1,715 hoursDonation and Condolence Activities
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout thisReport
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report80
Employees Donated Hairs for Cancer Patients
Employees of Linkz Shanghai Donated BloodEmployees of Luxshare Smart Manufacturing Donated Blood
Employees of Luxshare Nghe An Donated BloodEmployees of Merry Huizhou Donated Blood
Case | Luxshare Nghe An Launched a Hair Donation Campaign for Cancer PatientsCase | Luxshare Precision Organized Public Welfare Blood Donation ActivitiesIn 2024, Luxshare Nghe An conducted a hair donation event aimed atsupporting and uplifting cancer patients. Employees voluntarily participated inshaving and donating hairs activity, sought to inspire cancer patients withpositivity and resilience, encouraging them to actively pursue treatment andconfront their challenges with determination.
Committed to the founding mission of societal contribution, the Company actively promotes employee participation in voluntaryblood donation, fostering a culture of compassion. Throughout 2024, multiple subsidiaries—including Linkz Shanghai, LuxshareSmart Manufacturing, Merry Huizhou, Luxshare Nghe An, Luxshare Xuancheng, and Luxshare Enshi—organized and participated inpublic welfare-driven blood donation initiatives. Notably, Merry Huizhou received the "Voluntary Blood Donation, Passing on Love"accolade from the Huizhou City government, while Luxshare Enshi was distinguished as a "Passionate Public Welfare Unit".
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious Society
About this
Report
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report81
"Embracing Dragon Boat Festival with Children's Day- Sharing Dreams and Love, Converging Toward the Future" Event
On-site Visited and Consoled Students
Consoled the Elderly
Visited a Nursing Home
Case | Jinxi Factory Organized Visits to Welfare House on Children's Day
Case | Time Huizhou Organized Employees to Visit Nursing Home
Case | Luxshare Van Trung Expressed Sympathy for Underprivileged Children in Bac Giang Province, Vietnam
Volunteer Charity EventsLuxshare Precision consistently embodies our commitment to social responsibility and care for vulnerablepopulations by actively organizing and participating in elderly and youth support initiatives. Through these efforts,the Company provides both material aid and emotional support to these groups, upholding our founding missionof advancing public welfare and fostering a culture of philanthropy.
During traditional festivals such as the Mid-Autumn and Double Ninth Festival, Time Huizhou organizedemployee volunteers to visit nursing homes, delivering festival greetings and blessings to the elderly.Through companionship, conversation, and entertainment performances, the volunteers strive to make theelderly feel respected and cared for by society.
In June 2024, the Jinxi factory organizedvolunteers with carefully preparedstationery, nutritional products, andother supplies to visit the KunshanWelfare Institute and Jinxi PrimarySchool. They spent a joyful and warmholiday with the children, providing bothmaterial and spiritual care, and broughtthe warmth of society to them.
In June 2024, the executive committee andrepresentative team of the Luxshare VanTrung Labor Union undertook charitablepublic welfare activities in An Yong County,Bac Giang Province, Vietnam. They visitedpoor and seriously ill students, presentingthem with substantial gifts. During their visit,the team thoroughly assessed the students'living and educational circumstances,offering encouragement to help thechildren confront challenges with resilienceand providing them with care and hope.
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious Society
About this
Report
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report82
AppendixAssurance Report
Assurance statement No. CN-202504-CSR-05
Assurance Statement of Sustainability Report
T?V NORD (Hangzhou) Co., Ltd. (hereinafter “TNHZ”) has been commissioned by Luxshare Precision Industry Company Limited(hereinafter “Luxshare Precision”) to conduct an independent third-party assurance of Luxshare Precision's 2024 SustainabilityReport (hereinafter “Report”).Luxshare Precision is responsible for collecting, analysing, summarising and disclosing the information mentioned in the report.TNHZ carries out this work within the scope of the terms of reference recognised in the scope of the agreement with LuxsharePrecision (report assurance). Luxshare Precision is the designated user of this statement.This statement is based on the 2024 Sustainability Report prepared by Luxshare Precision. Luxshare Precision is responsible forthe completeness and authenticity of the information and data in the report.User of the Assurance StatementThis assurance statement is provided to all interested parties of Luxshare Precision.Assurance Scope
? Sustainability key performance and related information disclosed in the report during the year 2024;
? Assurance Location: Luxshare Precision Headquarters, 313 North Ring Road, Dongguan City, Guangdong Province, China;
? Evaluate the management process of collecting, analysing and examining the data and information covered in the report;
? Economic data are verified by a third party, so no double-checking is done; carbon emission data are subject to th
e finalinventory and publication by a third party.The on-site assurance has been conducted from March 26th to March 28th, 2025.Assurance MethodThe assurance process includes the following activities:
? Evaluating the information in the documents provided by Luxshare Precision;
? Interviewing Luxshare Precision management and the persons who are responsible for sustainability performance information
collection and statistics;
? Checking relevant websites and public information published by the media, and verifying the relevant data and information in
the report through samplingmethods;
? The report was evaluated based on the requirements of the GRI Sustainability Reporting Standards (GRI Standards 2021) in
terms of balance, comparability, accuracy, timeliness, clarity and reliability;
? In accordance with the guidelines related to the sustainability report of listed companies of the Shenzhen Stock Exchange:
"Self-Regulatory Guidelines for Listed Companies of the Shenzhen Stock Exchange No. 17 - Sustainability Report (for TrialImplementation)";
? The validation activities are carried out in accordance with the requirements of TNHZ Report Assurance Implementation Rules
(SC - P - A015 Rev.00).Assurance Standard and LevelAA1000 AS (V3): Type 2, Moderate Assurance.Assurance ConclusionThe 2024 Sustainability Report prepared by Luxshare Precision objectively reflects the status of the Company's sustainabledevelopment work and the performance achieved in the year 2024. The data in the Report is reliable and objective, TNHZ has notfound any systematic or material errors.
? Inclusivity: Luxshare Precision identifies key stakeholders, including government and regulatory agencies, shareholders and
investors, suppliers, customers, employees, community members, partners, and the media, and develops a regular stakeholder
interaction process. In 2024, Luxshare Precision launched a series of formal stakeholder engagement activities, including ESG-
Assurance statement No. CN-202504-CSR-05
specific investor exchanges, research on material topics, and supplier conferences, actively responding to the concerns ofrelevant parties regarding major economic, social, and environmental topics;
? Materiality: Luxshare Precision has adopted a double materiality analysis process, organizing financial meteriality seminars,
conducting stakeholder surveys, and combining the opinions of third-party experts. It has rationally evaluated and prioritizedfrom the two dimensions of "financial materiality" and "impact materiality", forming an material topics matrix. It discloses thestrategic, management actions and performance data in the Company's sustainable development management and operationprocess. The content of the report is material;
? Responsiveness: The report is responsive as it discloses management processes and comparable key performance data
around materiality topics in a variety of formssuch as ESG highlights performance, case studies, etc., including greenhousegas emissions (including Scope 3), waste generation and disposal, sustainable water resource management, employee rightsand benefits protection and training, and supply chain management;
? Impact: Luxshare Precision management system can monitor and measure how their actions affect the broader ecosystem.
The Company has carried out risk and opportunity analysis of material topics as well as value chain impact analysis,integrating sustainable development into business operations and management. In response to the risks of climate change,the Company has set SBT and taken proactive measures to reduce carbon emissions in its operations and value chain.Focusing on the protection of its own and supply chain labor rights and interests, Luxshare Precision has taken key measuressuch as formulating a self-assessment and special audit standard framework and conducting audits, as well as regularlyconducting CSR audits of suppliers
? The report in accordance with GRI Standards 2021.
Suggestions for ImprovementThrough the aassurance and evaluation activities, we have the following recommendations for improvement of LuxsharePrecision's practice and management of sustainable development:
? It is suggested that the requirements for report compilation be established in the system to accelerate the release time of the
report and thereby increase the timeliness of the report content.Special StatementExcluded in this assurance statement：
? Activities other than information disclosure;
? A statement regarding the standpoint, viewpoints,beliefs, objectives, future development direction and commitment of
Luxshare Precision.Statement of Independence and CompetenceT?V NORD is a world-leading certification body with branches in more than 100 countries around the world. It provides inspection,testing and verification services, including management system and product certification; audits and training in the aspects ofquality, environment, society and compliance; assurance of environmental, social responsibility and sustainability reports.As one of the global branches of T?V NORD, T?V NORD(Hangzhou) Co.,Ltd.is independent, ensuring that there is no conflict ofinterest with TPV Technology’s branches or stakeholders during the report assurance process. All the information in this report isprovided by TPV Technology Co., Ltd., and TNHZ has not been involved in the report preparation process.T?V NORD (Hangzhou) Co., Ltd.
The authorized person: Mr. Wang Peng
April 18th, 2025
Note: In case of conflict between the Chinese and English versions of this statement, please refer to the Chinese version.
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious SocietyAbout this
Report
Chairman'sStatement
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report83
Non-renewable energy consumption
Purchased municipal electricityPurchased green electricityPurchased green certificatesPurchased thermal energyPurchased cold energyPurchased steamTotal energy consumption
Total water withdrawal Surface water Groundwater (renewable)Groundwater (non-renewable) Seawater Extracted/entrained water/generated water Third-party water sources
Total water discharge Total discharge to surface water Total discharge to groundwater Total discharge to seawater Total discharge to third-party organizationsTotal industrial wastewaterTotal domestic sewage discharge
Biomass energy (ethanol gasoline)PV power consumption
Direct energy consumptionIndirect energy consumptionProportion of clean energy use
MLMLMLMLMLMLML
223,575.104,362.176,641.04
249.06
212,322.83143,477.35
656.26
142,821.093,290,655.641,603,209.65686,839.05
0.00
0.00
55,965.413,713,673.50367,052.453,346,621.05
70.86
209,165.884,542.326,143.46
216.09
198,264.0179,062.61
406.46
78,656.152,497,635.19755,796.54788,326.00
0.00
0.00
35,301.342,821,165.02288,228.492,532,936.53
62.99
265,951.633,851.595,064.01
109.61
256,909.4240,389.48
288.76
40,100.722,826,377.34271,619.41301,490.00
327.23
0.00
428.53
3,133,474.21306,324.112,827,133.10
21.39
Key Performance Data
Environmental Performance Table
Indicator
25 26
GRI 302-1 Energy consumption within the organization / Guideline - Article 35 (1) (2)
Unit202420232022
GasolineDiesel oilLiquefied petroleum gasNatural gas
Electricity consumption intensity per unit ofbusiness revenueEnergy consumption intensity per unit ofbusiness revenue
13.82
12.77
MWh/ million RMBMWh/ million RMB
12.17
11.11
14.64
13.39
Total installed photovoltaic capacity is the total installed rooftop photovoltaic capacity of the Company as of the end of the Reporting Year.Unit conversions for water withdrawals, discharges, and consumption are all 1 ML = 1000 tons.Adjustments to the statistical logic for water stress areas have been made, so the data for 2022 and 2023 have been adjusted.
Guideline - Article 35 (2)GRI 302-3 Energy intensity/ Guideline - Article 35 (1)
MWhMWhMWhMWhMWhMWhMWhMWhMWhMWhMWhMWhMWhMWhMWhMWhMWhMWh
Annual electricity savingsInstalled photovoltaic capacity
Indicator
GRI 302-4 Reduction of energy consumption
Unit202420232022
MWhMW
GRI 303-3 Water withdrawal/ Guideline - Article 36 (1)
GRI 303-4 Water discharge
209,435.36
149.89
29,286.30
0.00
43.93
0.00
0.00
0.00
29,242.37
143,893.50
85.29
24,574.18
0.00
2.52
0.00
0.00
0.00
24,571.66
189,975.21
54.64
24,476.90
0.00
6.29
0.00
0.00
0.00
24,470.61
According to the latest requirements of the Guideline, some indicators are newly disclosed or have changed disclosure standards, and data for 2023and 2022 cannot be traced.The Company's main energy consumption sources are natural gas, gasoline, diesel, liquefied petroleum gas, power generated by PV power facilities,outsourced electricity from municipal power supply, outsourced clean energy and outsourced steam.Data of the energy consumption in 2024 is based on the electricity and fuel consumption and relevant conversion factors provided by the GeneralRules for Calculation of Comprehensive Energy Consumption (GB/T 2589-2020).In accordance with the General Rules for Calculating Comprehensive Energy Consumption (GB/T 2589-2020), the energy consumption unit isconverted to 1 MWh = 0.1229 tons of standard coal.
27,200.68
0.00
0.00
0.00
27,200.688,905.6718,295.01
22,379.95
0.00
0.00
0.00
22,379.956,328.2616,051.69
22,492.04
0.00
0.00
0.00
22,492.046,111.6716,380.37
Total water withdrawals in areas underwater resources stress
Times of administrative penalties forsewage discharge of the Company
MLMLMLMLMLMLMLMLMLTimes
3,590.191,912.001,911.07
Total discharge in areas under waterresources stress
3,086.881,680.951,708.69
Renewable energy consumption
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Precision
Luxshare Precision 2024 Sustainability Report84
Environmental Performance Table（Continued）
Total Scope 1 Greenhouse Gas emissions Total CO2 emissions
Total CH4 emissions Total N2O emissions
Total HFCs emissions
Total PFCs emissions
Total SF6 emissions
Total NF3 emissions
Biogenic CO2 emissions
Water intensity per unit of business revenue
0.01
0.010.01
ML/ million RMB
Category 1: Purchased goods and servicesCategory 2: Capital goodsTotal Scope 3 Greenhouse Gas emission
Based on the nature of the Company's business, greenhouse gas (GHG) emissions are primarily from purchased municipal power, purchased steamand fossil fuel combustion. The greenhouse gas inventory includes carbon dioxide, methane and nitrous oxide, and hydrofluorocarbons. Thegreenhouse gas emission data is presented in terms of carbon dioxide equivalent, and the calculation of greenhouse gas emissions in 2024 is basedon the standard GB/T 2589-2020 General Rules for Calculation of Comprehensive Energy Consumption issued by the State Administration of MarketSupervision and Administration and the Standardization Administration of the People's Republic of China, the Sixth Assessment Report of the IPCCissued by the IPCC, the IPCC 2006 Guidelines for National Greenhouse Gas Inventories and the Guidelines for Provincial Greenhouse Gas EmissionInventories (Trial). Inventory Guidelines for Provincial Level Greenhouse Gas Inventories (Trial), Mainland China Grid Emission Factors (adopted byMainland China and Taiwan), Vietnam Electricity Emission Factors (adopted by Vietnam factories), and Philippines Electricity Emission Factors(adopted by Philippines factories).
The GHG data for FY2023 is updated to certified data, and the GHG emission intensity is updated accordingly.Scope 3 GHG emissions are calculated based on the 2024 Government Greenhouse Gas Conversion Factors for Company Repoing issued by theDepartment for Business Innovation and Skills (BIS) and the Department for Environment, Food and Rural Affairs (DEFRA) and the simapro database.
Category 3: Fuel and energy-relatedactivities (excluded in Scope 1 or Scope 2)
Category 4: Upstream transportation anddistribution
Total Scope 1 & 2 Greenhouse Gas emissions(Market-based)Total Scope 1 & 2 Greenhouse Gas emissions(Location-based)Scope 1 & 2 Greenhouse Gas emission intensityper unit of business revenue (Location-based)Scope 1 & 2 Greenhouse Gas emission intensityper unit of business revenue (Market-based)Scope 1 Greenhouse Gas emission intensityper unit of business revenueScope 2 Greenhouse Gas emission intensityper unit of business revenue (Location-based)Scope 2 Greenhouse Gas emission intensityper unit of business revenue (Market-based)
Total water consumption
GRI 303-5 Water consumption/ Guideline - Article 36 (1)
503.31
231.05202.38
2,085.622,194.231,984.86Total water consumption in areas underwater resources stress
MLMLIndicatorUnit202420232022
tCO2etCO2etCO2etCO2etCO2etCO2etCO2etCO2etCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
tCO2e
GRI 305-1 Direct (Scope 1) GHG emissions / Guideline - Article 24
31 32
81,369.54
49,947.47
24,641.17
118.39
6,662.51
0.00
0.00
0.00
167.08
64,857.3344,799.7816,921.49
104.85
3,031.21
0.00
0.00
0.00
103.28
93,645.5456,787.7820,986.61
134.27
15,736.88
0.00
0.00
0.00
58.90
GRI 305-2 Energy indirect (Scope 2) GHG emissions / Guideline - Article 24
tCO2etCO2e
2,086,738.39
649,157.521,571,530.89610,143.441,755,406.641,385,529.80
GRI 305-3 Other indirect (Scope 3) GHG emissions/ Guideline - Article 24
Category 5: Waste generated in operationsCategory 6: Business travelCategory 7: Employee commutingCategory 8: Upstream leased assets
tCO2e
tCO2e
5,552,265.90
1,391,925.15
82,341.12
391,967.87
4,753.8111,509.4438,369.8165,242.64
382,455.35
5,902,547.872,014,192.98135,396.76380,364.66
736,135.7229,255.518,077.6150,030.1467,043.61
6,609,751.983,325,446.59218,591.07409,512.71
414,219.8177,868.032,319.8048,401.594,110.92
IndicatorUnit202420232022
1,849,052.18
8.64
6.91
0.44
8.20
6.47
1,479,175.34
tCO2etCO2e
tCO2e
tCO2e
tCO2e
tCO2e
Category 10: Processing of sold productsCategory 11: Use of sold productsCategory 13: Downstream leased assetsCategory 14: FranchisesCategory 15: Investments
Category9: Downstream transportationand distribution
tCO2e54,877.67
263,218.802,404,273.31400,658.1136,001.63/24,671.19
104,323.11277,885.691,985,053.4417,461.2230,389.13/66,938.29
124,995.72112,695.631,815,113.1226,658.1823,019.41/6,799.40
GRI 305-4 GHG emissions intensity/ Guideline - Article 24
tCO2etCO2e
tCO2e/ million RMB
tCO2e/ million RMB
tCO2e/ million RMB
tCO2e/ million RMB
tCO2e/ million RMB
2,168,107.93
8.07
2.72
0.30
7.76
2.42
730,527.061,636,388.22
7.06
2.91
0.28
6.78
2.63
675,000.77Total Scope 2 Greenhouse Gas emissions(Market-based)Total Scope 2 Greenhouse Gas emissions(Location-based)
Category 12: End-of-life treatment of soldproducts
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Precision
Luxshare Precision 2024 Sustainability Report85
8,458,804.167,538,936.097,720,373.838,088,927.326,577,548.646,282,792.96
Total reduction of GHG emissions
Nitrogen Oxides (NOx) emissionsSulfur Oxides (SOx) emissions
Other exhaust gas emissions
Sulfuretted hydrogen emissionsParticulate matter emissionsTin and its compounds emissions
Overall waste generated Non-hazardous waste generated Domestic waste generated Hazardous waste generated
Persistent organic pollutant (POP) emissionsVOCs emissions (including non-methanehydrocarbon)
Disposal of non-hazardous and hazardous waste transfer quantities entering preparation for reuse is categorized as off-site versus on-site, and the restof the waste transferred from disposal is disposed of off-site.
GRI 305-5 Reduction of GHG emissions
tCO2etCO2etCO2e
tttt
1,658,578.861,100,074.21512,010.64
GRI 305-7 Nitrogen Oxides (NOx), Sulfur Oxides (SOx), and other significant air emissions/ Guideline – Article 30 (1)Total exhaust gas emissions Boiler exhaust gas Kitchen fume Industrial exhaust gas
6.32
8.30
272.70
9.65
4.14
298.95
5.48
5.15
258.21
288.62314.24304.19
Environmental Performance Table（Continued）
IndicatorUnit202420232022
tt
35.20
6.20
40.33
10.09
6.03
1.13
tttttttttttt
tt
0.90
68.00
0.00
150.20
12.20
1.30
1.40
70.71
0.00
162.50
13.92
1.50
0.00
95.18
0.00
118.07
37.80
35.35
GRI 306-3 Waste generated / Guideline – Article 31 (1)
187,344.21123,007.1415,568.1148,768.96
153,009.79114,618.4214,309.4324,081.94
154,368.43100,819.8214,447.8939,100.72GRI 306-4 Waste diverted from disposal / Guideline – Article 31 (1) (2)
150,316.2345,919.93121,319.2822,685.99104,007.1013,319.50Total amount of waste recovered Amount of hazardous waste recovered
Amount of domestic waste transferred for reuseAmount of domestic waste transferred for recycling
Hazardous waste entering other disposal methods is divided into on-site and on-site disposal, non-hazardous waste entering other disposal methodsis disposed of on-site, and the rest of the waste entering disposal is disposed of off-site.
IndicatorUnit202420232022
Amount of domestic waste transferred for other recovery operationst
184.87
6,260.13
194.63
4,642.16
0.00
4,505.66GRI 306-5 Waste directed to disposal / Guideline – Article 31 (1) (2)
Total amount of waste directed to disposal (including those transferred) Amount of hazardous waste directed to disposal
tt
ttt
ttt
37,027.982,849.0331,690.511,395.95
50,361.27
25,781.16
797.07
Amount of hazardous waste directed to disposal by incineration(with energy recovery)Amount of hazardous waste directed to disposal by incineration(without energy recovery)Amount of hazardous waste directed to disposal by landfillAmount of hazardous waste disposed into other disposal methods Off-site disposal On-site disposal
655.08
66.60
588.48
2,193.95
0.00
0.00
0.00
0.00
0.00
0.00
1,031.08
364.87
0.00
364.87
24,984.09
0.00
24,984.09
0.000.000.00
tttttttttttt
263.19
60.58
202.61
45,656.74
0.00
97,951.3014,329.885,913.228,416.6683,621.42
0.00
6,445.00
691.47
391.15
300.32
21,994.52
0.00
93,796.5026,727.555,694.8521,032.7067,068.95
0.00
4,836.79
1316.29
1316.29
0.00
12,003.21
0.00
86,181.94
46,826.46
3,145.13
43,681.33
39,355.48
0.00
4,505.66
Amount of hazardous waste transferred for reuse Amount of waste reused off-site Amount of waste reused on-siteAmount of hazardous waste transferred for recycling
Amount of non-hazardous waste transferred for reuse Amount of waste reused off-site Amount of waste reused on-siteAmount of non-hazardous waste transferred for recycling
Amount of hazardous waste transferred to other recovery operations
Amount of non-hazardous waste transferred for other recoveryoperations
Guideline - Article 24
Total Greenhouse Gas emissions (Location-based)Total Greenhouse Gas emissions (Market-based)
Amount of non-hazardous waste recovered
Amount of domestic waste recovered
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Precision
Luxshare Precision 2024 Sustainability Report86
Environmental Performance Table（Continued）
IndicatorUnit202420232022
Total number of suppliers in the database Overseas suppliers Chinese suppliers Service suppliers Raw and auxiliary suppliers
Social Performance Table
IndicatorUnit202420232022
GRI 2-7 Employees/ Guideline - Article 50 (1)
GRI 2-9 Governance structure and composition
GRI 2-6 Activity, value chain and other business relations
Total number of employees Employees aged 29 or below Employees between 30 and 49 Employees aged 50 or above Male employees Female employees Employees from Chinese Mainland Employees from Hong Kong, Macao and Taiwan regions
SupplierSupplierSupplierSupplierSupplierPersonPersonPersonPersonPersonPersonPersonPerson
9,263
8,2772,0847,179
9,5241,6677,8572,1437,381
10,6801,8698,8112,4038,277
Total number of indirect laborTotal number of direct laborTotal number of long-term employeesTotal number of temporary employeesTotal number of full-time employeesTotal number of part-time employeesTotal Number of Directors within the BoardIndependent DirectorsNon-independent DirectorsMale DirectorsFemale Directors
Overseas employees (excluding employees from Hong Kong,Macao and Taiwan regions)
278,103135,693139,5602,850163,436114,667215,8611,358
PersonPersonPersonPersonPersonPersonPersonPersonPersonPersonPerson
Person
68,821209,282278,103
278,103
60,884
232,585112,074118,3792,132132,253100,332183,6491,319
64,182168,403232,585
232,585
47,617
236,932114,915120,2441,773134,768102,164187,7841,35069,801167,131236,932
236,932
47,798
Guideline – Article 31 (1)
t
ttttttt
tt
25,055.8420,821.9214,637.88
Emission intensity of waste per unit of business revenueEmission intensity of non-hazardous waste per unit of business revenueEmission intensity of domestic waste per unit of business revenueEmission intensity of hazardous waste per unit of business revenue
0.70
0.46
0.06
0.18
0.66
0.50
0.06
0.10
0.72
0.47
0.07
0.18
t/ million RMBt/ million RMBt/ million RMBt/ million RMB
Amount of non-hazardous waste directed to disposal by landfill
0.00
0.00
0.00
0.00
0.00
0.00
Amount of domestic waste directed to disposal by landfillAmount of domestic waste directed to disposal by other disposal methodsAmount of domestic waste disposed by incineration (with energy recovery)Amount of domestic waste disposed by incineration (without energy recovery)Amount of domestic waste disposed by landfillAmount of domestic waste disposed of that goes to other disposal methods
Amount of domestic waste directed to disposal by incineration(with energy recovery)Amount of domestic waste directed to disposal by incineration(without energy recovery)
17,959.409,123.114,471.26
0.00
0.00
4,651.85
7,096.44
15,248.099,472.645,036.75
0.00
0.00
4,435.89
8,107.619,942.235,733.80
0.00
0.00
4,208.43
5,573.836,530.27
Amount of domestic waste disposed
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Social Performance Table（Continued）
Total number of important associations participated in
Indicator
GRI 201-2 Financial implications and other risks and opportunities due to climate change
GRI 205-1 Operations assessed for risks related to corruptionGRI 205-2 Communication and training about anti-corruption policies and procedures/ Guideline - Article 55 (3)
GRI 201-1 Direct economic value generated and distributedGRI 2-28 Membership associations
Investment in Clean TechnologyInvestment goal in Clean Technology in next yearProperty all risks insurance coverageAnnual premiums for property all risks insurancePercentage of the subsidiaries conducting internal risk assessment ofintegrity/anti-corruption this year
Amount of operating revenueOperating revenue growth compared with the previous year
Associationmillion RMB%million RMBmillion RMB10,000 RMB10,000 RMB
PersonPerson%%%Person%%%Person%%%
Over 400Over 4707,705,891.141,595.48
Over 300Over 3205,794,000
699.1
Nearly 260Over 3004,039,585.09
347.4
268,794.74
15.91
231,905.46
8.35
214,028.39
39.03
100.00100.00100.00%
Number of employees signing the Letter of Integrity Commitment/signingthe Letter of Integrity Notice
Number of the Directors signing the Letter of IntegrityCommitment/signing the Letter of Integrity Notice
Percentage of Directors from Chinese Mainland signedPercentage of Directors from Overseas (excluding Hong Kong, Macaoand Taiwan regions) signedPercentage of management employees from Chinese Mainland signedPercentage of management employees form Hong Kong, Macao andTaiwan region signedPercentage of management employees from Overseas (excludingHong Kong, Macao and Taiwan regions) signedNumber of general employees signing the Letter of IntegrityCommitment/signing the Letter of Integrity Notice
Percentage of general employees from Chinese Mainland signedPercentage of general employees form Hong Kong, Macao and Taiwanregion signedPercentage of general employees from Overseas (excludingHong Kong, Macao and Taiwan regions) signed
Percentage of Directors form Hong Kong, Macao and Taiwan regionsigned
278,103
71.43
28.57
0.00
11,211
84.79
2.95
12.26
266,889
77.47
0.39
22.14
232,585////////////
236,932////////////
Number of management employees excludes 3 Directors who hold senior management positions.
Number of management employees signing the Letter of IntegrityCommitment/signing the Letter of Integrity Notice
Percentage of direct labor signing the Letter of IntegrityCommitment/signing the Letter of Integrity NoticePercentage of indirect labor signing the Letter of IntegrityCommitment/signing the Letter of Integrity NoticePercentage of suppliers signing the Letter of Integrity Commitment
Percentage of service suppliers signedPercentage of suppliers from Overseas (excluding Hong Kong,Macao and Taiwan regions) signedPercentage of suppliers from Chinese Mainland signedPercentage of suppliers form Hong Kong, Macao and Taiwan region signed
Number of Directors receiving anti-corruption trainings
Percentage of Directors from Chinese Mainland trainedPercentage of Directors from Overseas (excluding Hong Kong,Macao and Taiwan regions) trainedPercentage of Directors form Hong Kong, Macao and Taiwanregion trained
Percentage of management employees from Chinese Mainland trainedPercentage of management employees form Hong Kong, Macao andTaiwan region trainedPercentage of management employees from Overseas (excludingHong Kong, Macao and Taiwan regions) trainedNumber of general employees receiving anti-corruption trainings
Percentage of general employees from Chinese Mainland trainedPercentage of general employees form Hong Kong, Macao andTaiwan region trainedPercentage of general employees from Overseas (excludingHong Kong, Macao and Taiwan regions) trainedPercentage of direct labor trainedPercentage of indirect labor trained
75.25
24.75
100.00
77.75
11.61
10.64
22.50
77.50
278,103
100.00
71.43
28.57
0.00
%%%%%%%%Person%
72.41
27.59
98.95
83.60
9.02
7.38
22.51
77.49
232,585
100.00
////
70.54
29.46
98.69
83.60
9.02
7.38
22.50
77.50
236,932
100.00
////
11,211
84.79
2.95
12.26
266,889
77.47
0.39
///////
///////
22.14
24.75
/
27.59 /
29.46
Total number of employees receiving anti-corruption trainingsCoverage of employees receiving anti-corruption trainings
Percentage of raw and auxiliary suppliers signed
Person%%%Person%%%Person%%%%%
Number of management employees receiving anti-corruption trainings
Total number of employees receiving anti-corruption trainingsTotal hours of anti-corruption trainingsCOC exam pass rate
Indicator
Person-timesHours%
596,690286,567.30
100.00
633,223
293,076.36
100.00
313,498959,488.00
100.00
Unit202420232022Unit202420232022
70.54
72.41
75.25
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Precision
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Turnover rate of employees is calculated by: Number of turnover employees in this category / (Number of employees of this category at the end ofthe year + Number of turnover employees in this category).
GRI 205-3 Confirmed incidents of corruption and actions taken
GRI 401-1 New employee hiring rate and employee turnover / Guideline - Article 50 (1)
EventEventTotal number of the confirmed events (among which the employeeswere fired or disciplined due to the corruption)
Confirmed anti-unfair competition, antitrust and anti-monopoly lawsuit
Times of corruption whistleblowing received
Total number of confirmed incidents of corruptionTotal number of the confirmed events (where the contract withbusiness partners was terminated or not renewed due to theviolations related to corruption)Confirmed legal actions involving company and employee corruptionCorruption litigation concluded involving the Company and employeesCompensation amount of corruption litigation concluded involvingthe Company and employees
EventTimes
EventEvent
Event
Corruption litigation concluded involving the Company foranti-competitive practices, antitrust, or monopoly law violationsCompensation amount of anti-unfair competition, antitrust andanti-monopoly lawsuit concluded involving the Company
Turnover rate of indirect labor (Loss of employees includequitting, dismissed and fired employees)
Event
RMB
0.00
0.00
0.00
0.000.000.00
GRI 206-1Legal actions for anti-competitive behavior, anti-trust, and anti-monopoly practices/ Guideline - Article 56 (2)
RMBPersonPerson
24.25
1,648
23.83
/
18.74
/Number of fresh graduate employeesGRI 401-3 Parental leave
GRI 403-9 Work-related injuriesGRI 403-10 Work-related ill health
GRI 403-5 Worker training on occupational health and safety /Guideline - Article 50 (2)
PersonPersonPersonPersonHoursPerson
Number of employees having rights of parental leave (male)Number of employees actually using parental leave (male)Number of employees having rights of parental leave (female)Number of employees actually using parental leave (female)Total hours of EHS trainingTotal number of employees receiving EHS training
Total working hoursNumber of fatalities due to work-related injuriesRate of fatalities due to million-hour work-related injuriesNumber of serious injuries due to work-related injuriesRate of million-hour work-related injuries with serious consequences
Social Performance Table（Continued）
163,4366,397114,6675,404
132,2534,791100,3323,708
134,768
3,988
102,164
2,536
1,774,670.85278,1032,151,601.17232,585
2,505,922.00
119,089
GRI 403-8 Workers covered by an occupational health and safety management system
Person-timesHoursPersonPerson-times
Total person-times of employee receiving EHS trainingTotal hours of Board of Directors members receiving EHS trainingTotal number of Board of Directors members receiving EHS trainingTotal person-times of Board of Directors members receiving EHS training
921,416
14.00
925,624
14.00
349,882
14.00
Proportion of employees in the operational sites with occupationalhealth and safety management system having passed external auditNumber of employees in the operational sites with occupational healthand safety management system having passed internal auditProportion of employees in the operational sites with occupational healthand safety management system having passed internal auditNumber of employees in the operational sites with occupational healthand safety management system having passed internal audit
Number of employees in the operational sites with occupational healthand safety management systemProportion of employees in the operational sites with occupational healthand safety management system
278,103
100.00
278,103 100.00251,626 90.48
Person%Person%Person%
232,585
100.00
232,585
100.00
195,405
84.01
236,932
100.00
236,932
100.00
184,479
77.86
Compensation amount of corruption litigation concluded involving theCompany for anti-competitive practices, antitrust, or monopoly lawviolationsTotal number of recorded employee injuriesRate of recorded work-related injuries per million working hours
558.43
0.00
0.00
Million hoursTimesTimes/ Million hoursTimesTimes/ Million hours
463.31
0.00
0.00
471.97
0.00
0.00
TimesTimes/ Million hours
0.20
0.31
0.57
Times110 145 268
IndicatorIndicatorUnit202420232022Unit202420232022
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Indicator
GRI 404-3 Percentage of employees receiving regular performance and career development reviews
GRI 405-1 Diversity of governance bodies and employees/ Guideline - Article 50 (1)
%%
100.00
100.00
100.00
100.00
100.00
100.00
Male indirect employeesTotal number of the Board's members Number of male Directors Number of female Directors
Female indirect employeesPercentage of indirect labor receiving regular performanceand career development reviews
%
100.00 100.00 100.00
Number of Directors aged 29 or belowNumber of Directors between 30 and 49Number of Directors aged 50 or aboveNumber of Directors with industry or technology backgroundNumber of Directors with legal, financial, or accounting backgroundPercentage of male DirectorsPercentage of female DirectorsPercentage of Directors aged 29 or belowPercentage of Directors between 30 and 49Percentage of Directors aged 50 or abovePercentage of employees aged 29 or belowPercentage of employees between 30 and 49Percentage of employees aged 50 or abovePercentage of disabled employees
57.14
42.86
0.00
42.86
57.14
48.80
50.18
1.02
0.55
57.14
42.86
0.00
28.57
71.43
48.18
50.90
0.92
0.26
57.14
42.86
0.00
28.57
71.43
48.50
50.75
0.75
0.17
IndicatorUnit202420232022
GRI 406-1 Incidents of discrimination and corrective actions takenGRI 308-1 New suppliers that were screened using environmental criteriaGRI 308-2 Negative environmental impacts in the supply chain and actions takenGRI 414-1 New suppliers that were screened using social criteriaGRI 414-2 Negative social impacts in the supply chain and actions taken
Number of new suppliersPercentage of new suppliers subject to CSR auditNumber of suppliers completing CSR audit in 2024 Number of suppliers completing audit on-sitePercentage of suppliers agreeing to improvements after assessments
Number of incidents of discriminationCase0 0 0
Number of suppliers having significant, actual and potentialnegative environmental and social impacts confirmed
100.00
1,436
0.00
Supplier%SupplierSupplierSupplier%
1,405
100.00
1,624
0.00
2,389
100.00
2,451
0.00
Social Performance Table（Continued）
Unit202420232022GRI 404-1 Average hours of training per year per employee/ Guideline - Article 50 (3)
GRI 404-2 Programs for upgrading employee skills and transition assistance programs
Total hours of employee trained Total hours of male employees trained Total hours of female employees trained Total hours of direct labor trained Total hours of indirect labor trainedAverage employee training hours Average male employee training hours Average female employee training hours Average direct labor training hours Average indirect labor training hoursTotal person-times of employees trainedAnnual coverage of employees trainedTotal training expenseNumber of employees enrolling in academic educationTotal number of internally certified instructors
5,723,138.943,374,762.822,348,376.122,571,932.503,151,206.44
20.58
20.65
20.48
12.29
45.79
3,080,707
100.00
HoursHoursHoursHoursHoursHoursHoursHoursHoursHoursPerson-times%
5,240,496.972,941,306.722,299,190.252,971,557.002,268,939.97
22.53
22.24
22.92
17.65
35.35
3,853,949
100.00
10,715,691.296,107,944.044,607,747.261,901,896.008,813,795.29
45.23
45.32
45.10
11.38
126.27
1,958,541
100.00
1,070.77
1,13510,000 RMBPersonPerson
PersonPersonPerson
PersonPersonPersonPersonPerson%%%%%%%%%1,095.341,6351,1631,309.48
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious SocietyAbout this
Report
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report90
Number of suppliers terminating relationships after assessments Percentage of suppliers terminating relationships after assessments
0.00
Supplier%
Number
0.00
100.00
Substantiated complaints concerning breaches of customer privacyand losses of customer dataNumber of incidents concerning breaches of customer privacyand losses of customer dataNumber of information security incidents
Total investment in rural revitalization
Monetary amount of information security incidents involved(including fines and amounts involved in the case)Monetary amount of customer privacy breaches incidentsinvolved (including fines and amounts involved in the case)
CaseCaseMillion RMB
10,000 RMBMillion RMB
0.00
0.00
0.00
0.00
0.00
0.00
1,035.26//
IndicatorUnit202420232022
Guideline - Article 40
Guideline - Article 42 (3)
Guideline - Article 53 (2)
Number of volunteers engagedTotal volunteer hours servedTotal investment in public welfare and charities
Person-timesHours10,000 RMBNumberNumberNumberNumberNumberNumberNumberNumberEventTimesTimes
7,164
1,603
4,903
1381
6,2021,1424,491
1,527
4,526
3,373
1,585
1,108
3,747
1,715.00
340.61
//////Number of patents obtained Number of invention patents obtained Number of utility model patents obtained Number of appearance design patents obtainedNumber of new patents obtained Number of new invention patents obtained Number of new utility model patents obtained Number of new appearance design patents obtainedLarge-scale investor engagement activities heldSmall-scale communications by phone, email, etc. conductedInquires and communications via Easy IR platform completed
Company NameName of HonorLevel
Bozhou Lanto Electronic LimitedBozhou Lanto Electronic LimitedShenZhen Luxshare Acoustics Technology Ltd.Luxshare iTech （Zhejiang） Co., LTD.Luxshare iTech （Zhejiang） Co., LTD.Dongguan Luxshare Technology Co., Ltd.Luxcase Precision Technology （Yancheng） Co., Ltd.Luxcase Precision Technology （Yancheng） Co., Ltd.Luxcase Precision Technology （Yancheng） Co., Ltd. Ri Shan Computer Accessory (Jiashan) Co., Ltd. Ri Shan Computer Accessory (Jiashan) Co., Ltd. Ri Shan Computer Accessory (Jiashan) Co., Ltd.Huzhou Jiuding Electronic Co., Ltd.Linkz Industries (Suzhou) LimitedLuxshare Electronic Technology (Kunshan) Co., Ltd.Luxshare Electronic Technology (Kunshan) Co., Ltd.Luxshare Precision Industry (Chuzhou) Co., Ltd.Luxshare Precision Industry (Chuzhou) Co., Ltd.Jiangxi Luxshare Intelligent Manufacture Co., Ltd.Ri Ming Computer Accessory (Shanghai) Co., Ltd.Ri Ming Computer Accessory (Shanghai) Co., Ltd.Luxshare Precision Industry (Enshi) Co., Ltd.Huzhou Jiuding Electronic Co., Ltd.Linkz Industries (Suzhou) LimitedLinkz Industries (Suzhou) Limited
NationalNationalNationalNationalNationalNationalNationalNationalNationalNationalNationalNationalNationalNationalNationalNationalNationalNationalNationalNationalNationalNationalProvincialProvincialProvincial
Specialized, Sophisticated, Distinctive, and Innovative "Little Giant"Green FactoryTitle of "National Model Workers' Home"2024 Top 500 Private Manufacturing Enterprises in ChinaGreen FactoryNational Key "Little Giant" Enterprise2024 Top 500 Private Manufacturing Enterprises in China2024 Top 500 Private Enterprises in ChinaGreen Factory2024 Top 500 Private Manufacturing Enterprises in China2024 Top 500 Private Enterprises in China2024 5G Factory DirectoryGreen FactoryGreen FactoryGreen FactoryGreen Supply ChainGreen FactoryGreen Supply ChainGreen FactoryGreen FactoryZero-Carbon FactoryGreen Factory
2024 Five-Star Cloud Enterprise in Jiangsu Province
Social Performance Table（Continued）
Summary of Honors
Not all honors are listed here.
2024 Top 500 High-Tech Enterprises in Zhejiang Province forInnovation CapabilitySpecialized, Sophisticated, Distinctive, and Innovative Enterprise inJiangsu Province
GRI 418-1 Substantiated complaints concerning breaches of customer privacyand losses of customer data / Guideline - Article48 (22)
Guideline - Article 39 (3)
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious SocietyAbout this
Report
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report91
Company NameName of HonorLevelLuxshare iTech (Zhejiang) Co., Ltd.
Dongguan Xuntao Electronics Co., Ltd.Suzhou Luxshare Technologies Co., Ltd.Suzhou Luxshare Technologies Co., Ltd.Luxcase Precision Technology （Yancheng） Co., Ltd.Luxcase Precision Technology （Yancheng） Co., Ltd.Ri Shan Computer Accessory (Jiashan) Co., Ltd.Ri Shan Computer Accessory (Jiashan) Co., Ltd.Ri Shan Computer Accessory (Jiashan) Co., Ltd.Ri Shan Computer Accessory (Jiashan) Co., Ltd.Ri Shan Computer Accessory (Jiashan) Co., Ltd.Ri Shan Computer Accessory (Jiashan) Co., Ltd.
Huzhou Luxshare Precision Industry Co., Ltd.Huzhou Luxshare Precision Industry Co., Ltd.Luxshare Precision Accessory (Suzhou) Ltd.Lanto Electronic LimitedRi Ming Computer Accessory (Shanghai) Co., Ltd.
ProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvin2cialProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvincialMunicipalMunicipal
Enterprise Technology Center in Zhejiang Province2024 Intelligent Workshop in Jiangsu Province2024 Five-Star Cloud Enterprise in Jiangsu ProvinceClean Production Enterprise in Guangdong Province2024 Three-Star Cloud Enterprise in Jiangsu Province2024 Gazelle Enterprise in Jiangsu ProvinceEnterprise Technology Center in Jiangsu ProvinceGreen Factory2023 Intelligent Factory in Zhejiang Province
2024 Provincial Industrial Internet PlatformIntelligent Manufacturing Factory in Jiangsu Province2024 Five-Star Cloud Enterprise in Jiangsu Province2024 Three-Star Cloud Enterprise in Jiangsu Province2024 Intelligent Workshop in Jiangsu ProvinceProvincial Technology-Based SMEProvincial Innovative SMEGreen FactoryGreen Factory
Company NameName of HonorLevel
Luxshare-ICT (Vietnam) LimitedLuxshare-ICT (Van Trung) Company LimitedLuxshare-ICT (Nghe An) LimitedXuancheng Luxshare Precision Industry Co., Ltd.Xuancheng Luxshare Precision Industry Co., Ltd.Luxshare Precision Industry (Hubei) Co., Ltd.Suining Luxshare Precision Industry Co., Ltd.Xiexun Electronic (Ji'an) Co., Ltd.Xiexun Electronic (Ji'an) Co., Ltd.Xiexun Electronic (Ji'an) Co., Ltd.ASAP Technology (Jiangxi) Co., Ltd.ASAP Technology (Jiangxi) Co., Ltd.Xinyu Xiexun Electronic Co., Ltd.ASAP Electronics (Jiangxi) Co., Ltd.Luxshare Electronic Technology (Kunshan) Co., Ltd.Luxshare Electronic Technology (Kunshan) Co., Ltd.Luxshare Precision Industry (Chuzhou) Co., Ltd.Luxshare Precision Industry (Chuzhou) Co., Ltd.Jiangxi Luxshare Intelligent Manufacture Co., Ltd.Jiangxi Luxshare Intelligent Manufacture Co., Ltd.Luxshare iTech (Zhejiang) Co., Ltd.Luxshare iTech (Zhejiang) Co., Ltd.Luxshare iTech (Zhejiang) Co., Ltd.
ProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvincial
2024 Three-Star Cloud Enterprise in Jiangsu Province
Outstanding Grassroots Trade Union AwardGreen FactoryLeading Enterprise in Land Use Efficiency in Anhui ProvinceGreen FactoryCivil-Military Integration Enterprise (Unit) in Sichuan ProvinceGreen Factory
Cultivation Enterprise of Technology Leader in Jiangxi ProvinceGreen FactoryGreen Factory
2024 Top 200 Private Enterprises in Jiangsu ProvinceTop 100 Manufacturing Enterprises in Anhui ProvinceTop 100 Private Manufacturing Enterprises in Anhui ProvinceCultivation Enterprise of Technology Leader in Jiangxi ProvinceProvincial Industrial Internet Platform in Jiangxi ProvinceEagle Enterprise in Zhejiang ProvinceKey Enterprise Research Institute in Zhejiang Province
Summary of Honors（Continued）
For details on the high-tech enterprise certification status of Luxshare Precision and its subsidiaries, please refer to Section X of the 2024 Annual Repo.
Enterprise with Significant Contributions to Social Security in BacGiang ProvinceDa Chuang Precision Intelligent Manufacturing(Kunshan) Co., Ltd.
Enterprise with Significant Contributions to Social Security in BacGiang Province
2024 Intelligent Manufacturing Benchmark Enterprise inJiangxi ProvinceDemonstration Enterprise of Single Champion in Manufacturingin Jiangxi Province
2024 Specialized, Sophisticated, Distinctive, and Innovative SME inJiangxi Province2024 Top 100 Private Enterprises in R&D Investment in JiangsuProvince
2024 Top 500 High-Tech Enterprises in Zhejiang Province forInnovation Capability
Luxshare Intelligent Manufacture Technology（Changshu） Co., Ltd.
Rida Intelligent Manufacture Technology (Rugao)Co., Ltd.
Zhejiang Province's Second Batch of Pilot Enterprises for Chief DataOfficer System Construction
Shanghai 2024 Zero-Carbon Pioneer Enterprises
Zhejiang Province's Sixth Batch of "Frontrunner" Enterprises inDomestic and Foreign Trade Integration2024 Provincial Green and Low-Carbon Factory in Zhejiang Province
2024 Top 100 Private Manufacturing Enterprises in Jiangsu Province
Rida Intelligent Manufacture Technology (Rugao)Co., Ltd.Luxis Precision Intelligent Manufacturing (Kunshan)Co., Ltd.Luxis Precision Intelligent Manufacturing (Kunshan)Co., Ltd.
Luxshare Intelligent Manufacture Technology（Changshu） Co., Ltd.
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious SocietyAbout this
Report
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report92
2-6 Activities, value chain and other business relationships2-7 Employees2-8 Workers who are not employees
GRI Standards IndexStatement of use
GRI StandardsGRILocation or Reason for OmissionGRI StandardsGRILocation or Reason for OmissionUsed standard
Luxshare Precision Industry Company Limited has reported in accordance with the GRI Standard for the period from January 1, 2024 to December 31, 2024.GRI 1: Foundation 2021
GRI 2The organization andits reportingpractices 2021
GRI 2Activities andworkers 2021
GRI 2 Governance2021
GRI 2 Governance2021
GRI 2 Strategy,policies and practices2021
GRI 2 Stakeholderengagement 2021
GRI 3： Disclosures onmaterial topics 2021GRI 3： Disclosures onmaterial topics 2021
2-3 Reporting period, frequency, and contact point2-4 Restatements of information2-5 External assurance
2-1 Organizational details2-2 Entities included in the organization's sustainabilityreporting
Company Profile
Company ProfileKey Performance DataAttracting Excellent TalentKey Performance Data
About this ReportAbout this ReportFeedback FormContinuous Low-Carbon OperationsKey Performance DataAssurance Report
2-8-a, 2-8-b, 2-8-c are omitted.Information unavailable/incompleteThe Company respects all employeesregardless of employment type, butcurrent data collection is incomplete andcannot be fully disclosed.
2-21 Annual total compensation ratio
Role of the highest governance body in overseeing themanagement of impactsRole of the highest governance body insustainability reporting
Collective knowledge of the highest governance bodyEvaluation of the performance of the highest governancebody
Delegation of responsibility for managing impactsConflicts of interestCommunication of critical concerns
Remuneration policiesProcess to determine remuneration
2-22 Statement on sustainable development strategy2-23 Policy commitments
2-24 Embedding policy commitments2-25 Processes to remediate negative impactsImplementing ESG Governance2-26 Mechanisms for seeking advice and raisingconcerns2-27 Compliance with laws and regulations2-28 Membership associations2-29 Approach to stakeholder engagement2-30 Collective bargaining agreements3-1 Process to determine material topicsStabilizing Enterprise Operations3-2 List of material topics3-3 Management of material topicsStabilizing Enterprise Operations
Key Performance Data201-1 Direct economic value generated and distributedStabilizing Enterprise Operations
Stabilizing Enterprise OperationsCompany Profile
Implementing ESG Governance
Implementing ESG Governance
Nomination and selection of the highest governancebodyGovernance structure and compositionStabilizing Enterprise OperationsStabilizing Enterprise OperationsStabilizing Enterprise OperationsStabilizing Enterprise OperationsStabilizing Enterprise OperationsImplementing ESG GovernanceImplementing ESG GovernanceStabilizing Enterprise Operations
Chair of the highest governance body
Stabilizing Enterprise OperationsStabilizing Enterprise OperationsStabilizing Enterprise OperationsStabilizing Enterprise Operations
2-92-102-112-122-132-142-152-162-172-182-192-20
2-21-a, 2-21-b, 2-21-c are omitted.Confidentiality constraintsThe Company actively promotes pay equityamong employees. Disclosure is omitted toprotect employee privacy.Stabilizing Enterprise OperationsOperating an Honest and Trustworthy EnterpriseCultivating Green ProductsProtecting Employee RightsCollaborative Value CreationImplementing ESG GovernanceStabilizing Enterprise OperationsCultivating Green ProductsProtecting Employee RightsCollaborative Value Creation
2-30-a, 2-30-b are omitted.Information unavailable/incompleteThe Company complies with relevant lawsand regulations to protect employees'legitimate rights and interests. Completedisclosure is not possible due to difficultiesin obtaining accurate statistical data.
Stabilizing Enterprise OperationsOperating an Honest and Trustworthy Enterprise
Stabilizing Enterprise Operations
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious SocietyAbout this
Report
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report93
3-3 Management of material topics
3-3 Management of material topics
3-3 Management of material topics
3-3 Management of material topics207-1 Approach to tax207-2 Tax governance, control, and risk management
202-1 Ratios of standard entry level wage bygender compared to local minimum wage
205-2 Communication and training aboutanti-corruption policies and procedures205-3 Confirmed incidents of corruption andactions taken
206-1 Legal actions for anti-competitivebehavior, anti-trust, and monopoly practices
Implementing ESG GovernanceEnhancing Compensation and BenefitsProtecting Employee Rights201-a, 201-b, 201-c, 201-d are omittedConfidentiality constraintsThe Company adheres to the "equal payfor equal work" principle and providesemployees with wages that ensure adecent standard of living. Disclosure isomitted due to confidentialityrequirements.202-a, 202-b, 202-c, 202-d are omittedConfidentiality constraintsThe Company continuously promotesmanagement diversity and localization.Disclosure is omitted due to confidenti-ality requirements.202-2 Proportion of senior managementhired from the local community
3-3 Management of material topics305-1 Direct (Scope 1) GHG emissions
GRI 201：EconomicPerformance 2016
GRI 202：Topicmanagementdisclosures 2016
GRI 302：Energy2016
GRI 303：Water andEffluents 2018
GRI 305：Emissions2016
GRI 207：Tax 2019
GRI 205：Anti-cor-ruption 2016
GRI 206：Anti-com-petitive Behavior2016
GRI 207：Tax 2019
Process to determine remunerationKey Performance Data201-2 Financial implications and other risksand opportunities due to climate change201-3 Defined benefit plan obligations andother retirement plans
Responding to Climate ChangeCultivating Green ProductsKey Performance Data
Implementing ESG GovernanceOperating an Honest and TrustworthyEnterprise205-1 Operations assessed for risks related to corruption
Operating an Honest and TrustworthyEnterpriseKey Performance DataOperating an Honest and TrustworthyEnterpriseKey Performance DataOperating an Honest and TrustworthyEnterpriseKey Performance DataImplementing ESG GovernanceOperating an Honest and TrustworthyEnterpriseOperating an Honest and TrustworthyEnterpriseKey Performance DataImplementing ESG GovernanceStabilizing Enterprise Operations
Stabilizing Enterprise OperationsLuxshare Precision complied with therequirements of each operating site andsubmits tax information to thelocal tax authorities.
Stabilizing Enterprise OperationsOperating an Honest and TrustworthyEnterpriseStabilizing Enterprise Operations
Compensation and Benefits System
207-3 Stakeholder engagement and management ofconcerns related to tax
3-3 Management of material topics302-1 Energy consumption within theorganization
Implementing ESG GovernanceOptimizing Energy Use302-2-a, 302-2-b, and 302-2-c areomitted.Information unavailable/ incompleteDue to incomplete methodologies forstatistical measurement/estimation ofenergy consumption in upstream anddownstream activities, we are currentlyunable to disclose this information withfull accuracy.
Key Performance Data
Key Performance DataOptimizing Energy UseKey Performance Data302-5-a, 302-2-b, 302-5-c are omitted.Confidentiality constraintsDue to confidentiality restrictions onbusiness information, the data is omittedImplementing ESG GovernanceImplementing Green Manufacturing
Implementing ESG GovernanceContinuous Low-Carbon OperationsImplementing Green ManufacturingContinuous Low-Carbon OperationsKey Performance Data
Implementing Green ManufacturingImplementing Green ManufacturingKey Performance DataKey Performance DataKey Performance Data
302-2 Energy consumption outside of theorganization302-3 Energy intensity302-4 Reduction of energy consumption
3-3 Management of material topics303-1 Interactions with water as a shared resource303-2 Management of water discharge-related impacts303-3 Water withdrawal303-4 Water discharge303-5 Water consumption
302-5 Reductions in energy requirements ofproducts and services
207-4 Country-by-country reportingGRI StandardsGRILocation or Reason for OmissionGRI StandardsGRILocation or Reason for OmissionGRI Standards Index（Continued）
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout thisReport
Chairman'sStatement
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report94
GRI 305：Emissions2016
GRI 306：Waste2020
GRI 308：SupplierEnvironmentalAssessment2016GRI 401：Employment2016
GRI 401：Employment2016
GRI 402：Labor/Man-agement Relations2016
GRI 403：
Occupational Healthand Safety 2018
305-2 Energy indirect (Scope 2) GHG
Continuous Low-Carbon OperationsKey Performance Data
401-1 New employee hires and employee turnover
Key Performance Data401-1-a, 401-1-b are omitted.Confidentiality constraintsDue to confidentiality requirements,only indirect employee annual turnoverrate data is disclosed.Enhancing Compensation and Benefits
Implementing ESG GovernanceProtecting Employee RightsImplementing ESG GovernanceCompensation and Benefits SystemEnsuring Occupational Health and SafetyProtecting Employee Rights
401-2 Benefits provided to full-time employees thatare not provided to temporary or part-timeemployees
Enhancing Compensation and BenefitsKey Performance Data401-3-c, 401-3-d, 401-3-e are omitted.Information unavailable/incompleteThe Company provides parental leavefor all employees. Partial indicators ofthis disclosure item are omitted thisyear due to ongoing data managementimprovements.401-3 Parental leave
3-3 Management of material topics
3-3 Management of material topics
Ensuring Occupational Health and SafetyEnsuring Occupational Health and SafetyEnsuring Occupational Health and Safety
403-1 Occupational health and safety managementsystem403-2 Hazard identification, risk assessment, andincident investigation403-3 Occupational health services
Ensuring Occupational Health and SafetyEnsuring Occupational Health and SafetyKey Performance Data403-4 Worker participation, consultation, andcommunication on occupational health and safety403-5 Worker training on occupational health andsafety
Compensation and Benefits SystemEnsuring Occupational Health and SafetyEnsuring Occupational Health and SafetyKey Performance Data
403-6 Promotion of worker health
403-8 Workers covered by an occupational healthand safety management system403-7 Prevention and mitigation of occupationalhealth and safety impacts directly linked bybusiness relationships
402-1 Minimum notice periods regardingoperational changes
3-3 Management of material topics
Implementing ESG GovernanceImplementing Green Manufacturing306-1 Waste generation and significantwaste-related impacts306-2 Management of significant waste-related impacts
Implementing Green ManufacturingImplementing Green Manufacturing306-3 Waste generated
Implementing Green ManufacturingKey Performance Data
3-3 Management of material topics
3-3 Management of material topics
308-1 New suppliers that were screenedusing environmental criteria308-2 Negative environmental impacts in the supplychain and actions taken
Implementing ESG GovernanceCollaborative Value CreationCollaborative Value CreationKey Performance DataCollaborative Value CreationImplementing ESG GovernanceAttracting Excellent TalentEnhancing Compensation and Benefits
306-4 Waste diverted from disposal306-5 Waste directed to disposal
Implementing Green ManufacturingKey Performance DataImplementing Green ManufacturingKey Performance Data
305-3 Other indirect (Scope 3) GHG emissions305-4 GHG emissions intensity
Key Performance DataContinuous Low-Carbon OperationsKey Performance Data305-5 Reduction of GHG emissions305-6 Emissions of ozone-depleting substances (ODS)305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), andother significant air emissions
Continuous Low-Carbon OperationsKey Performance DataImplementing Green ManufacturingKey Performance Data
GRI StandardsGRILocation or Reason for OmissionGRI StandardsGRILocation or Reason for OmissionGRI Standards Index（Continued）
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout thisReport
Chairman'sStatement
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report95
GRI 403：
Occupational Healthand Safety 2018
Ensuring Occupational Health and SafetyKey Performance Data403-9 Work-related injuries
GRI 404：Training andEducation 2016
Implementing ESG GovernanceProtecting Employee RightsSupport for Training and Development
Protecting Employee RightsSupport for Training and DevelopmentKey Performance Data
3-3 Management of material topics
GRI 405：Diversityand Equal Opportunity2016
GRI 406：Non-dis-crimination 2016
3-3 Management of material topics405-1 Diversity of governance bodies andemployees
405-2 Ratio of basic salary and remuneration ofwomen to men
3-3 Management of material topics406-1 Incidents of discrimination and correctiveactions taken
Key Performance Data404-1 Average hours of training per year per employee
Implementing ESG Governance
Stabilizing Enterprise Operations
Diversity and Inclusion
Stabilizing Enterprise Operations
Attracting Excellent Talent
Key Performance Data
405-2-a, 405-2-b are omitted.
Confidentiality constraints
The Company upholds the "equal pay for
equal work" principle and is committed to
creating an equitable and diverse
workplace. Disclosure is omitted due to
confidentiality requirements.
Implementing ESG Governance
Diversity and Inclusion
Protecting Employee Rights
GRI 407：Freedom ofAssociation and CollectiveBargaining 2016GRI 408：Child Labor2016GRI 409：Forced orCompulsory Labor 2016
GRI 414：Supplier SocialAssessment 2016
GRI 416: Customer Healthand Safety 2016
GRI 418：CustomerPrivacy 2016
3-3 Management of material topics
3-3 Management of material topics
3-3 Management of material topics409-1 Operations and suppliers at significant riskfor incidents of forced or compulsory labor
408-1 Operations and suppliers at significant riskfor incidents of child labor
407-1 Operations and suppliers in which the right tofreedom of association and collective bargaining maybe at risk
Implementing ESG GovernanceProtecting Employee Rights
Implementing ESG GovernanceProtecting Employee RightsImplementing ESG GovernanceProtecting Employee RightsProtecting Employee Rights3-3 Management of material topics
Implementing ESG GovernanceCollaborative Value Creation
3-3 Management of material topics
3-3 Management of material topics
Implementing ESG GovernanceStrengthening Client Trust
Implementing ESG GovernanceEnsuring Information Security418-1 Substantiated complaints concerning breachesof customer privacy and losses of customer data
Ensuring Information SecurityKey Performance Data
416-1 Assessment of the health and safety impactsof product and service categories
Strengthening Client TrustCultivating Green Products416-2 Incidents of non-compliance concerning thehealth and safety impacts of products and services
416-2-a and 416-2-b are omitted due toconfidentiality constraints.The Company is committed to providinghigh quality and non-hazardous products,the disclosure is omitted due toconfidentiality requirements.
414-1 New suppliers that were screened usingsocial criteria414-2 Negative social impacts in the supply chainand actions taken
Collaborative Value CreationKey Performance DataCollaborative Value Creation
Protecting Employee Rights
Protecting Employee Rights
Attracting Excellent Talent
Protecting Employee Rights
404-2 Programs for upgrading employee skillsand transition assistance programs
Key Performance Data404-3 Percentage of employees receiving regularperformance and career development reviews
Cultivating Green Products
Ensuring Occupational Health and Safety
Key Performance Data403-10 Work-related ill health
GRI StandardsGRILocation or Reason for OmissionGRI StandardsGRILocation or Reason for OmissionGRI Standards Index（Continued）
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributingto a Harmonious SocietyAbout thisReport
Chairman'sStatement
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report96
11 to 19
21 to 28
Luxshare Precision Industry Co., Ltd. complies with the requirements of the Guideline from January 1, 2024, to December 1, 2024.Shenzhen Stock Exchange Self-Regulato Guidelines No. 17 - Sustainable Development Repo (Trial)Usage Instructions
Disclosure RequirementsCorresponding ArticlesLocation or Reason for OmissionDisclosure RequirementsCorresponding ArticlesLocation or Reason for Omission
Standards Used
SustainabilityInformation Disclo-sure Framework
Implementing ESG GovernanceThe Company adopted a qualitative description rather thanquantifying the financial risks and opportunities of individualESG issues within the current and subsequent fiscal year’s. Wewill enhance our financial quantitative information disclosure inthe future.Implementing ESG GovernanceResponding to Climate ChangeImplementing Green ManufacturingImplementing ESG GovernanceImplementing Green ManufacturingKey Performance DataImplementing ESG GovernanceImplementing Green ManufacturingKey Performance DataImplementing Green ManufacturingKey Performance DataImplementing ESG GovernanceContinuous Low-Carbon Operations
Implementing Green Manufacturing
Optimizing Energy UseKey Performance DataAddressing ClimateChange
Pollutant Emissions
Waste ManagementEcosystem and BiodiversityConservation
Environmental ComplianceManagement
Energy Utilization
Implementing ESG GovernanceImplementing Green ManufacturingKey Performance Data
Water Resource Utilization
Implementing ESG GovernanceImplementing Green ManufacturingKey Performance Data
Implementing ESG GovernancePioneering Innovation and R&DAdvancing Intelligent Manufacturing
Circular Economy
Not applicable, Luxshare Precision's core business operationsdo not involve scientific research, technology development, orrelated activities in technology ethics-sensitive fields such aslife sciences and artificial intelligence.Implementing ESG Governance
Technology EthicsSupply Chain Security
Luxshare Precision consistently treats small and medium-sizedenterprises (SMEs) fairly and equally. During the ReportingPeriod, there were no material overdue payments outstanding.
Equal Treatment of Smalland Medium-sizedEnterprises
Implementing ESG GovernanceStrengthening Client Trust
Product and Service Safetyand Quality
Implementing ESG Governance
Implementing ESG Governance
Implementing ESG GovernanceOperating an Honest and Trustworthy EnterpriseKey Performance DataImplementing ESG GovernanceOperating an Honest and Trustworthy EnterpriseKey Performance Data
Implementing ESG Governance
Data Security and Custom-er Privacy Protection
Implementing ESG GovernanceAttracting Excellent TalentProtecting Employee RightsSupport for Training and DevelopmentEnhancing Compensation and BenefitsEnsuring Occupational Health and SafetyKey Performance Data2024 Annual Repo Section XGuidelines – Aicle 50 (ii) Work Safety Liability Insurance is notapplicable as the Company does not belong to the high-riskindustries specified in the Work Safety Liability Insuranceregulations.
Employees
Due Diligence InvestigationStakeholder Communication
Anti-corruption andAnti-briberyAnti-unfair Competition
Rural Revitalization
Social Contribution
Innovation Driven
Shenzhen Stock Exchange Sustainability Report Guidelines Index
Optimizing Energy UseKey Performance Data
Cultivating Green ProductsKey Performance Data2024 Annual Repo Section III
Key Performance DataKey Performance DataRevitalizing Rural AreasPooling Compassion
Collaborative Value CreationKey Performance Data
Ensuring Information SecurityKey Performance Data
Collaborative Value Creation
Key Performance Data
Stabilizing Enterprise Operations
Key Performance Data
Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious SocietyAbout this
Report
Chairman'sStatement
About Luxshare
Precision
Luxshare Precision 2024 Sustainability Report97
Thanks for reading the 2024 Sustainability Report published by Luxshare Precision Industry Company Limited. We sincerely appreciate your suggestions and comments to help us keep moving forward.
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Sustainable Development,Enhancing Corporate Governance
AppendixGreen Transition, FulfillingEnvironmental Responsibility
Continuous Innovation,Forging Excellent Products
Employees Empowerment,Building a Platform for Dreams
Close Collaboration, Contributing
to a Harmonious SocietyAbout thisReport
Chairman'sStatement
About LuxsharePrecision
Luxshare Precision 2024 Sustainability Report98