Shenzhen WOTE Advanced Materials Co.,LtdAddress: Room 3101, Block B, Building 9, Zone C, Phase Ⅲ of Vanke Yuncheng,Liuxin 4th Road, Xili Community, Xili Sub-district, Nanshan District, Shenzhen City(Room 3101,Block B, Building 7, International Innovation Valley)Postal code: 518052Tel: 0755-26880862Fax: 0755-26880966Website: www.wotlon.com
Responding to Climate ChangeInnovating Green ProductsReducing Resource ConsumptionControlling Pollution EmissionsSpreading EnvironmentalProtection Concepts
Strengthening Environmental Management
Improving Corporate GovernancePreventing Compliance RisksProtecting Investors' Rights and InterestsBusiness Ethics CommitmentEnsuring Information Security
Deepening Industrial AdvantagesPursuing Excellent Quality Providing High-quality ServicesPromoting Technological InnovationBuilding a Strong Security LineCollaborating with the Industry for Mutual Success
Caring for Employee GrowthActive Participation in Social Welfare
Advancing Green:
Coexisting with Technologyand Nature
Shaping Better Life Together
Transparent Governance:
Building a Solid Foundationfor High-QualityDevelopment
Contents
Message from theChairwomanAbout WOTE
Sustainable DevelopmentManagement
Outlook for 202565 Indicator Index About this ReportFeedback Form
Message from the Chairwoman
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Message from the Chairwoman
Chairwoman of Shenzhen WOTE Advanced Materials Co.,Ltd.
Wu Xian
In 2024, we have entered a year replete with opportunitiesand challenges. The rapid advancement of globaltechnologies, particularly the booming development of5G/6G infrastructure, low-altitude economy, robotics,new energy, articial intelligence (AI) and semiconductorindustries, has driven explosive growth in market demandfor high-performance materials. This trend has presentedunprecedented opportunities for the special polymermaterials industry in which we operate. However, the worldtoday is undergoing profound transformations unseen in acentury. Enduring and emerging challenges, coupled withcomplex contradictions are superimposed, colliding, andfermenting. This has poses challenges to our adaptabilityand strategic decision-making capabilities.In the face of these opportunities and challenges, wehave always adhered to independent innovation, exploredgreen and low-carbon development paths while efcientlyadvancing our platform-based strategy for polymermaterials. Our persistent efforts are dedicated to achievinghigh-quality and sustainable corporate development.Green Leadership: Advancing Low-carbonTransformation. We actively implement green developmentprinciples, continuously strengthening climate resilience,enhancing environmental management systems, upgradingproduction facilities, streamlining manufacturing processes,and reducing emissions. Through the implementation ofrooftop photovoltaic power generation initiatives, we areincorporating clean energy sources and reducing relianceon conventional energy. By actively developing green andeco-friendly polymer material products, we deliver moresustainable solutions to customers, advancing the "carbonpeaking and carbon neutrality goals" through practicalactions.
Empowering Society and Creating Beautiful ValuesTogether. To fulll the mission of "shaping better life,"wedrive the strategic transformation of high-performancematerials and promote the integration of controllable,strengthened industrial chains. We are committed tocontinuously improving product quality and technologicalcore competitiveness, achieving comprehensive
development in high-performance materialsbusinesses including Liquid Crystal Polymer(LCP), High Performance Polyamide(PPA), andPolyphenylene Sulde (PPS). This enables us toadvance sustainable development across industrialchains in low-altitude economy, high-frequencycommunications, new energy vehicles, and articialintelligence (AI). We adhere to people-orientedprinciples, creating a diverse, inclusive, andequitable working environment. Our goal is to builda highland for industrial talents and attract/retainoutstanding professionals. By strengthening supplychain management and cooperating closely withsuppliers, we promote the sustainable developmentof the whole industrial chain. Meanwhile, we activelyparticipate in social welfare, making continuousefforts in industrial chain construction, educationempowerment, and poverty alleviation. Ourinvolvement in various public welfare activities hasreceived widespread recognition from society.
Enhancing Governance and FortifyingDevelopment Foundations. We adhere to the
corporate tenet of "Honesty and Self-Discipline, HighEfciency," continuously rening our governanceframework while establishing a comprehensivesustainable management system. Throughstrengthened internal controls and risk managementmechanisms, we aim to enhance the Company'sresilience in addressing emerging challenges. Weelevate standards for regulatory compliance ininformation disclosure and streamline investorcommunication channels. By promptly sharing theCompany's developmental milestones, we bolsterinvestor condence continuously..Moving forward, we will remain anchored to ourcore values of " Be Unique for You", deepeningour sustainable development strategy to enhancecore competitiveness. Aligned with our vision ofbecoming "a leading supplier", we are committed tocreating enduring value for stakeholders—includingemployees, shareholders, suppliers, and customers.
About WOTE
About WOTECompany Prole
Global Layout
Corporate Culture
Shenzhen WOTE Advanced Materials Co., Ltd. ( Stock Code: 002886 | WOTE Stock) was established in 2001. As aleading material supplier and material solutions provider in China, the Company is primarily engaged in the R&D,production, manufacturing, sales, and technical services of high-performance functional polymer materials, includingtheir polymerization, compounding, and molded products. It is dedicated to delivering optimized new materialsolutions and value-added services to customers.Our main products include high-performance and new engineering polymers, high-performance composite materials,carbon ber / carbon nanotube composite materials, and fluoropolymers. These products are widely used in 5G/6Ginfrastructure, low-altitude economy, robotics, new energy, articial intelligence (AI), semiconductors, electrical andelectronic components, and medical/healthcare sectors, ultimately enhancing the quality of life.
Headquartered in Shenzhen, the Company operatesbranches and subsidiaries across South China, East China,and Southwest China, with a subsidiary in Hong Kong andmanufacturing factories established in Vietnam. Through ourmulti-regional bases and whole industrial chain capabilities,we deliver optimal polymer material solutions to customers.These efforts strengthen and complement upstream anddownstream industrial chain linkages, achieve supply chainautonomy and controllability, and contribute to the nation'shigh-quality development.
Leading SupplierBe Unique for You
Integrity, Recruitment,
Innovation, BeyondShaping Better Life
VisionValue
MissionPolicy
Partner Culture
WOTE regards employees,shareholders, suppliers, customers aspartner with the belief that we shouldwork together to create better future.
Partner's Denition
Honesty and self-discipline,High efciency, Mutualachievement and missionwill be achieved.
Principle of Partnership
Appreciation, Understanding,TolerancePartner EcologyCompany Capacity Planning of High-performance Materials
25,000 tons/year, ranking rst in the world20,000tons/year10,000tons/year
10,000tons/year
10,000tons/year 1,000tons/yearLCP:
PPS:
PSF: PTFE:
PPA:
PAEK:
East China Base (Yancheng, Jiangsu)
WOTE Huaben (Shanghai Valqua)Zhejiang Conceptfe (Huzhou, Zhejiang)
South China Base (Huizhou, Guangdong)
Chongqing Base
Vietnam Base (Hai Phong City)
Shenzhen HeadquartersHongkong WOTE
Manufacturing base for 5G, electronic communication,photovoltaics, and automotive material compoundingSpecial polymer material LCP polymerization baseManufacturing base for molded products made ofsemiconductors and fluororesin materialsManufacturing base for high-performance materialmolded productsManufacturing base specializing in advanced materialsfor aerial drones, smart home ecosystems, consumerelectronics materials, and OA material compoundingSpecial polymer material polymerization baseSpecial polymer lm manufacturing base
Meet the personalized order needs of overseas customers
International cutting-edge technology, high-end talentalignment and market development, international trade
East China
South China
Southwest China
Overseas
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
About WOTE
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Responsibilities and Honors
Membership of Social Organization
Corporate Honors
Social Organization Joined by Ms. Wu Xian
Chairwoman—Ms. Wu Xian's Personal Honors
National Outstanding EntrepreneurCity of Quality Excellence in Shenzhen Gold Award
The First "Pioneer" of Strategic Emerging Industries in
Guangdong, Hong Kong and Macao"One Hundred Innovators in Shenzhen" in the New EraShenzhen Industry Leaders and Women's Role ModelsTop 100 Industry Leaders in ShenzhenPerson of the Year in Polymer IndustryMeritorious Award for Polymer Industry
National Outstanding Female Entrepreneur
Guangdong Province March 8th Red Flag BearerTop 10 Outstanding Female Entrepreneurs in Shenzhen
Business Figures in ShenzhenShenzhen Most Influential Female Entrepreneur —
Shenzhen Merchants Kapok Meritorious Award
Excellent Builder of Socialist Cause with ChineseCharacteristics for Non-Public Economic Personnel
in Guangdong Province"One-Stop" Demonstration Enterprise Unit of High-SpeedConnector Issued by the Ministry of Industry and InformationTechnology
"Top 50 Leading Enterprises" in Strategic EmergingIndustries in Guangdong, Hong Kong and Macao
100 Most Potential Brand Enterprises in China
Shenzhen Top 500 Enterprises
Top 7 of China's Material Companies in Terms of Innovation
Ecological Co-build Flashing Institution in Shenzhen
China Green Product-Certied Enterprise
Industrial Enterprise Technological Innovation Award byJiangsu Dongtai Economic Development Zone
Famous Brand Products in Guangdong Province
"Outstanding Sustainability Practice Case forListed Companies" Awarded by China Associationfor Public Companies
National-level Specialized and New "Key LittleGiant" Enterprise
Shenzhen Top 100 Quality Enterprises
Advanced Enterprise for Standard Innovation Contribution
Investor Relations Gold Award "IR Initiative Award"
Zhejiang Provincial Green and Low-Carbon Factory
2024 Crystal Ball Award for Best ESG Management ListedCompanies
Top 10 Enterprises of Special Polymer MaterialsIndustry in China
Shenzhen Well-known Brand
Guangdong Specialized New "Little Giant"Enterprise
"Grade A" in Information Disclosure for ThreeConsecutive Years by Shenzhen Stock Exchange
Hidden Champion of Zhejiang Province
2024 Crystal Ball Award for Best Investor RelationsManagement Listed Companies
"National Model Case of Technological Innovationfor Private Enterprises" by the All-China Federationof Industry and Commerce
Top 70 Innovative Enterprises in Shenzhen
Top 100 Manufacturing Enterprises in Guangdong Province
"Best Practice Case for the Board of Directors" Awardedby China Association for Public Companies
Zhejiang Provincial Digitalized WorkshopTop 100 Most Popular Listed Companies by Tonghuashun
Excellent Brand Enterprise of Fluoroplastic Industry inChina
Top 100 Shenzhen Industry Leaders
Guangdong Province Enterprise of Observing Contract andValue Credit
"Best Practice Case of BoD Ofce" Awarded by ChinaAssociation for Public Companies
Executive President of the Women Entrepreneurs Chamberof Commerce of All-China Federation of Industry and
Commerce
Lifetime Honorary President and General Advisor ofShenzhen Polymer Industry AssociationVice Chairman of China Synthetic Resin Association (CSRA)and President of High Performance Plastics Branch of CSRA
Honorary President of Shenzhen WomenEntrepreneurs AssociationPresident of Guangdong-Hong Kong-Macao Greater Bay AreaStrategic Emerging Industry Development Promotion Association
Executive Vice President of Shenzhen Federation of Social
OrganizationsPresident of Shenzhen Strategic Emerging IndustryDevelopment Promotion Association
Executive Chairwoman of the Alliance of Shenshang
Advanced Material IndustryStanding Committee Member of Guangdong Federation of
Industry & Commerce
Chairman of the Council of Shenzhen Women andChildren's Development FoundationVice Chairman of Shenzhen Federation of Industry &
Commerce
Director of the Management Committee
of WOTE Public Welfare FundMember of the Shenzhen Municipal Committee of ChinesePeople's Political Consultative Conference and Deputy
Director of the Proposal Committee
Chairman of the Management Committee of Women’sScience and Technology Innovation FundHonor President of the Listed Companies Federation inGuangdong-Hong Kong-Macao Greater Bay Area
Member of Shenzhen Advisory and SupervisoryCommittee on Business Environment Optimization
Governments
?Comply with the laws and regulations?Respond to national development
strategies
?Create employment opportunities?Drive regional economic development?Environmental protection
?Accept supervision?Regular disclosure?Ad-hoc reporting?Participate in relevant meetings
Shareholders
?Prudent operation?Investment returns?Open and transparent information
?Regular/ad-hoc informationdisclosure?General Meeting?Investor communication activities?Communication via phone and email
Employees
?Compensation and benets?Career development and advancement?Safe and comfortable workingenvironment
?Work-life balance
?Company Lark group?Internal email system?All-hands meetings, department
meetings, cross-departmentmeetings?Proposal mechanism
Customers
?R&D innovation?Product quality?Stable supply
? Multi-channel customer informationcollection?Customer Manager full processservice?Customer communication and visits
Suppliers
?Win-win and mutual development?Fairness and justice?Integrity in business operations
?Supplier qualication investigation?Supplier assessment and audit?Supplier communication
Communities
?Support harmonious communitydevelopment?Actively engage in public welfareactivities
? Information disclosure?Communication via phone and email
Media
?Transparent communication?Positive interactions
?Accept interviews?Information disclosure?Communication via phone and email
Sustainable Development Strategy
Sustainable Development Management
Sustainable Development Governance Structure
Sustainable Development Strategy
Significant TopicAnalysis
Stakeholder Engagement
We've set up a sustainable development governance framework, consisting of the Board of Directors (BoD), ESG WorkingGroup, departments, and subsidiaries to systematically promote ESG work and ensure information disclosure andcommunication.
Our sustainable development philosophy is centered on the commitment to fulll the mission of "shaping better life".We embrace ESG practices that revolve on three key areas: harmony between technology and nature, shaping betterlife, and high-quality development foundation. Each year, we conduct in-depth research on both internal and externalenvironmental shifts, dynamically updating the specic topics pertaining to these three domains. This approach ensureseffective management of diverse ESG risks and opportunities, propelling us towards sustainable development.
Following the material topic analysisprocess, we survey internal and externalstakeholders to understand their concernsabout our sustainable development work.Consequently, we select 11 key materialtopics to emphasize in the Report.
We actively engage in dialogue with stakeholders to understand and promptly respond to their concerns and expectations.This process offers vital references for identifying sustainable development risks and opportunities, devising relevantstrategies, and enhancing the quality of information disclosure.
Board ofDirectorsESG WorkingGroupDepartmentsandSubsidiaries
The Board of Directors is responsible for overseeing and making decisions related to theCompany's sustainable development. It receives regular reports from the ESG Working Group,deliberates internal documents including ESG reports, major topics, key plans and systems,reviews and approves signicant ESG topics to ensure alignment between sustainabledevelopment philosophy and the Company's business concept.The ESG Working Group, headed by the BoD Ofce of the Company, collaborates with departmentheads and subsidiary leaders to dene the Company's ESG work, break down objectives, andassign responsibilities, as well as review ESG report to ensure the accuracy of disclosures.Taking into account the ESG work undertaken by departments and subsidiaries, we align themwith the Company's overarching principles to establish management objectives and actionplans, ensuring the successful implementation and tangible results of various ESG topics.We systematically gather and organize data on ESG work and their outcomes, which is thenreported to the ESG Working Group for information disclosure.
Employee Welfare and CareEmployee Training and Development
Public Welfare or Charity
Responsible Procuremen
Water Resource ManagementData Security and PrivacyProtectionBusiness Ethics
R&DInnovationEnergy ManagementCarbon Emission ReductionInformation DisclosureSupply ChainManagementChemical Safety
Protection of Employee Rights and Interests
Occupational Healthand SafetyCorporate GovernanceEnvironmentalManagement
Compliance OperationsProduct Qualityand SafetyPollution Control(Waste Management)Importance to Stakeholders
Importance to WOTE
Key StakeholdersConcerns and ExpectationsCommunication Channel
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Advancing Green: Coexisting with Technology and Nature
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Advancing Green: Coexistingwith Technology and Nature
Our actions
Related Topics
Our performance
Contribution to the United Nations Sustainable Development Goals (SDGs):
WOTE continually explores innovative technologies to fulll societal aspirations forimproved quality of life, upholding green and high-quality development principles.The Company fullls its environmental protection obligations and implements self-imposed rigorous ecological targets regarding operational impacts on the environment.It proactively addresses climate change, fosters a green corporate culture, and takesconcrete actions to help tackle global climate challenges while advancing the "carbonpeaking and carbon neutrality" goals.
Respond to Climate ChangeStrengthen Environmental ManagementInnovate Green Products
Reduce Resource ConsumptionControl Pollution EmissionsSpread Environmental Protection Concepts
Environmental Management, Pollution Control, Energy Management, Water ResourceManagement, and Carbon Emission Reduction
CNY 5.836million
248.5tons
32,725.7tons
100%
709.2tons
2,693.4tons
Investment inenvironmental protectionTotal amount ofhazardous waste
Total discharge ofindustrial wastewaterHazardous wastedisposal rate
Total amount ofharmless wasteTotal amount ofrecycled waste
Our actions
Related Topics
Our performance
Contribution to the United Nations Sustainable Development Goals (SDGs):
WOTE continually explores innovative technologies to fulll societal aspirations forimproved quality of life, upholding green and high-quality development principles.The Company fullls its environmental protection obligations and implements self-imposed rigorous ecological targets regarding operational impacts on the environment.It proactively addresses climate change, fosters a green corporate culture, and takesconcrete actions to help tackle global climate challenges while advancing the "carbonpeaking and carbon neutrality" goals.
Environmental Management, Pollution Control, Energy Management, Water ResourceManagement, and Carbon Emission Reduction
Investment inenvironmental protection
潜潜潜潜潜潜潜潜
Respondingto ClimateChange
Global climate change not only threatens human existence and socioeconomicprogress but also signicantly impacts corporate operational stability.Addressing climate risks has become imperative for all businesses. Throughstrategic planning frameworks, we continuously focus on climate change,utilizing our distinctive operational strengths and expertise to identify climate-related risks and opportunities, supporting global climate mitigation andadaptation initiatives.
We recognize climate change as a core strategic topic, and have set up an environmental management framework forgreenhouse gas emissions and climate change response. This enables effective governance of climate-related topics.
To actively address climate change and enhance our climate risk prevention and early warning capabilities, we identify thepotential impacts of climate-related risks and opportunities on our operations in line with our industry's characteristics andactual conditions.
Climate change may cause more severeextreme weather, such as frequent storms,typhoons, and floods. These can damage ourpower / water supply facilities for production,disrupt the supply chain, and potentiallyincrease operational and maintenance costs.
China's goals of achieving carbon dioxidepeaking by 2030 and carbon neutrality by2060, along with new low-carbon transitionpolicies, are exerting pressure on high-emission economic activities and increasingthe R&D costs for green production.Brand customers' requirements for low -carbon products are getting stricter, forcing theCompany to invest more in R&D, technology,and equipment, leading to cost increases.The government advocates technologicalimprovements or innovations for a low-carboneconomic system transition, and corporatecustomers may prefer green and low-carbonproducts and services.To meet market demands, the Company speedsup providing products and services that satisfythe market, achieving long-term sustainablebusiness and revenue growth.
Identify the climate vulnerability of production baselocations and gradually build climate change responsecapabilities.Monitor and warn of extreme weather, develop disasteremergency plans, conduct annual emergency drills andtraining for sudden environmental incidents, and enhanceextreme weather response abilities.In construction projects, prioritize climate-resilientinfrastructure, such as seismic and flood control designs.Actively develop green and eco-friendly materials to meetcustomers' low-carbon demands.Install photovoltaic panels in factory areas, utilize cleanenergy, and boost the share of renewable energy.Implement multiple environmental technology upgradeprojects, replace old equipment, enhance energyefciency, and incorporate green concepts into all productlifecycle stages.
Governance
Strategy
Physi-cal Risk
Transfor-mationRisk
Oppor-tunities
Potential ImpactResponse Policy
Actively implement energy management at the productionand operation end to boost resource efciency;incorporate green concepts into all product lifecyclestages, develop low-carbon products continuously tomeet customer needs.Speed up providing products and services that meetmarket demands, promote renewable energy replacingtraditional energy, and take energy-efciency improvingmeasures to continuously enhance climate changeresilience.
Environmental Management Framework for Climate Change
Board of Directors
Each Subsidiary's Environmental or EHS
Management Committee
Identify, rank, analyze, and manage climate-related risks and opportunities. Set and oversee the execution of
relevant goals, and report these to the Board of Directors.
Undertake specic climate-related initiatives and regularly update the environmental or EHS management
committee on progress.
Formulate climate change strategies and supervise their implementation.
Each Subsidiary's Environmental
Ofcer
Annual photovoltaic power generation of Zhejiang Conceptfe
2,276,000
kWh
We've integrated climate-related risks management into our environmental risk process. Each subsidiary's environmentalor EHS management committee oversees this work. The base's environmental ofcer is tasked with implementing climaterisk management and following up on emerging or potential crises / issues.
We have established environmental targets for GHG emissions management, implementing clean production initiativesand developing photovoltaic projects to maximize energy utilization efciency while minimizing GHG emissions throughoutthe production lifecycle.
Risks Management
Metrics and Targets
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Advancing Green: Coexisting with Technology and Nature
1615
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
StrengtheningEnvironmentalManagement
A robust environmental management system is key to effectiveecological preservation. We strictly abide by the laws and regulationssuch as the Environmental Protection Law of the People's Republicof China, adhere to the environmental policy of "compliance withlaws and regulations, prevention of pollution, energy conservationand consumption reduction, and continuous improvement", andcontinuously improve the development of the environmentalmanagement system.
Each subsidiary has established an environmental orEHS management committee as needed, comprisingcompany leaders and department heads, to ensuresenior managers' involvement in environmental affairs.The committee has formulated environmental policies,goals, and plans, and oversees their implementation bydepartments. A dedicated office or working group hasbeen established for implementation, risk monitoring,and reporting. Each department and employee clarifiestheir environmental responsibilities, has developedgovernance plans in accordance with environmentalpolicies and control procedures, and executedenvironmental governance tasks.Each subsidiary has set environmental goals for waterresource management, energy management, toxicemissions and waste management, and greenhouse gasemission management based on business developmentand operational status, continuously improving their ownenvironmental management level.
WOTE regularly conducts centralized environmentalprotection training and publicity campaigns. Eachsubsidiary holds regular environmental protectiontraining sessions in accordance with the annual planand conducts specialized training on environmentalprotection systems, emergency management, pollutantemissions, etc., to enhance employees' environmentalawareness.
WOTE has set up systems for environmental protectionplanning, environmental management, constructionproject environmental management, operation andmaintenance of environmental protection facilities andequipment, environmental monitoring, environmentalreporting, environmental governance management,environmental protection supervision and inspection,environmental protection publicity, education andtraining, environmental risk investigation and hiddendanger rectification, environmental protectionassessment, emergency management of suddenenvironmental incidents, etc., to strictly regulate allenvironmental protection related work.
Improving the management system
WOTE has incorporated environmental indicators intoits performance evaluation system, established anenvironmental assessment framework, and integratedthese indicators into the performance evaluations of bothdepartments and employees.
Implementing performance evaluation
Establishing management organizations
Setting environmental goals
Conducting environmental protection
training
During the reporting period,there were no major environmental pollution accidents.
subsidiaries has passed ISO 14001:2015 environmental managementsystem certication.
The total investment in environmental protection was CNY
5.836
million,representing
0.31
% of the operating revenue.
We have obtained the Global Recycled Standard (GRS) certificationfor 18 post-consumer recycled (PCR) product grades. We seek greenraw materials, process low-carbon polymer materials, and sell them tocustomers to support low-carbon environmental protection.
We promote PCR materials in home appliances and consumerelectronics based on customer needs. We have applied low-carbonPCR materials in multiple domestic and international automakers.Additionally, we collaborate with a leading domestic container companyto replace traditional EPDM materials with thermoplastic TPV materialsfor container sealing strips. This advances the green economy andreduces carbon emissions.
InnovatingGreenProducts
We actively promote the R&D of eco-friendly special polymer materials,offering customers greener and more sustainable solutions. This reduces thecarbon footprint of downstream products and advances the development ofa green, low-carbon, and circular economy.
We developed innovative WOTLON? biobased polyamide applicationsfor wearable technology to promote sustainable industry development.We also designed specialized materials using recycled carbon fiberfor robotic exoskeletons and mechanical arms to significantly reducecarbon footprint.
Localization of green
products
Green certication of
materials
Development of eco-
friendly materials
Promotion of low-carbon materials
We participated in the creation of the group standard forBio-basedNylon (PA5X) Resin for Automotive Components,thereby acceleratingthe domestication of bio-based high-temperature nylon. This material,derived from renewable resources, reduces pollutant emissions duringproduction and offers advantages such as environmental friendlinessand the use of renewable raw materials.
Advancing Green: Coexisting with Technology and Nature
1817
ReducingResourceConsumption
We strictly adhere to national and local laws, implement regulations suchas theEnergy Resource Management Control Procedure, and continuouslyimprove our resource management to promote efcient and circular use ofresources.
By establishing an energy management system, we enhance the measurement and monitoring of energy consumption,ensuring efcient and energy-saving use.
Zhejiang Conceptfe has passed ISO 50001 energy management system certication.
Energy Management
Zhejiang Conceptfe: awarded as a provincial-level green factoryCase
In order to meet the industry’s green development requirements, WOTE places great emphasis on green factoryconstruction. Through a series of measures such as land-intensive use, harmless raw materials, clean production,low-carbon energy, and waste resource utilization, the Company actively builds green and low-carbon factories.In November 2024, the subsidiary Zhejiang Conceptfe successfully passed the assessment of Zhejiang ProvincialGreen Manufacturing Demonstration Project and was awarded the title of Provincial Green Factory. Lookingahead, Zhejiang Conceptfe will continue to increase investment in technological innovation, constantly upgradeits efcient, clean, low-carbon, and circular green manufacturing system, and strive to become a green leader inthe industry.
Rooftop Photovoltaic Project of Zhejiang Conceptfe
Using Clean Energy
Preferred Energy-saving Equipment
Green Building Design
Optimized Production Process
The energy-saving design of buildings meets the requirements of national and localenergy-saving regulations. The design of workshops and ofce buildings includes alarge number of glass windows to fully utilize natural light and reduce dependenceon articial lighting. A double-layer glass design is also adopted to effectively reducethe demand for heating in winter and cooling in summer.
WOTE improves heating technology to enhance energy utilization efciency, andreduce the occurrence of product defects, thereby avoiding energy waste caused byrework and supplementary production.
WOTE eliminates old equipment with high energy consumption and low efciency,introduces new equipment with higher energy efciency levels, and improves energyutilization efciency in the production process. Additionally, WOTE comprehensivelyadopts energy-efcient lighting systems to further reduce energy consumption.
WOTE undertakes rooftop photovoltaic power generation projects to graduallyreduce the use of purchased electricity in the production process, thereby promotingthe clean and low-carbon use of electricity. In employee dormitories, solar and airsource water heaters are adopted to supply hot water, fully utilizing clean energy.
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTAdvancing Green: Coexisting with Technology and Nature
2019
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
We implement comprehensive management systems for packaging materials, includingtheRaw Material and Packaging Material Management System, Product Protection ControlProcedures, Pallet Management Regulations, and Packaging Operation Procedures. Denedpackaging material management objectives have been established, and we actively pursuethe recycling of production waste and packaging materials to minimize unnecessary lossesand resource waste.
Packaging Material Management
%
The recycling rateof WOTE specialpallets, ton bags, etc.reachedThe water used in our production and operation processes primarily comes from municipal tap water, with a small portionsourced from rainwater. This ensures that we face no risks related to water source selection or water use. We reduce waterwaste by fostering a water-saving culture, reusing production water, deploying water-saving equipment, and implementingrainwater harvesting, among other measures.
Water Resource Management
Post "Save Water" signs at water usage points, promote water-saving awareness to employees on a daily basis,and ensure that faucets are promptly turned off after use, thereby creating an atmosphere where everyonevalues and conserves water.Establish a water-saving reward mechanism to encourage employees to actively participate in water-savingactions, and commend and reward departments and individuals who achieve signicant water-saving results.
Fostering a Water-saving Culture
Recycle and reuse equipment cleaning wastewater.Introduce a circulating water cooling system, where the cooling water is collected by a cooling tower andreused to achieve efcient utilization of water resources.
Reusing Production Water
Widely adopt water-saving equipment, such as water-saving toilet flushing equipment, faucets, and showerfacilities, effectively reducing daily water usage.Using Water-saving Equipment
Establish rainwater collection areas and pools, and use the collected rainwater for non-production waterneeds such as landscaping and irrigation after simple treatment.Carrying Out Rainwater Collection
Packaging materialtype
Actions taken
Pallet
Set up a strict plastic pallet recycling mechanism, trackthe flow of pallets through a management system,ensuring they are promptly recycled, cleaned, andmaintained after transportation is completed, and thenput into use for the next cycle. 。
Ton Bag
Recycle.
Blister Pack
Encourage customers to collect used blister packs andreturn them to the Company via reverse logistics. Afterundergoing professional cleaning and disinfection, thesepacks can be reused for product packaging.
PE Bag
Cooperate with suppliers to promptly collect, classify,and store PE (Polyethylene) bags used for raw materialpackaging upon arrival at the factory, so they can bereused in the next procurement cycle.
Advancing Green: Coexisting with Technology and Nature
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2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
ControllingPollutionEmissions
We always adhere to the concept of green development, implement cleanproduction, and have established corresponding management systems for "wastewater, waste gas, and solid waste" (the "three wastes"). We also commissionthird-party to issue Clean Production Audit Reports. By comprehensivelystrengthening the strict management of pollutants generated in the productionprocess, we address clean production at the source and continuously reduce theenvironmental impact of our production activities. During the reporting period,WOTE did not receive any administrative penalties for environmental issues.
We strictly comply with laws and regulations such as theIntegrated Emission Standard of Air Pollutants (GB 16297-1996) and theStandard for Fugitive Emission of Volatile Organic Compounds(GB 37822-2019). We have also developedtheWaste Gas Management and Control Procedure.By installing advanced equipment such as cyclone spray towers,activated carbon adsorption systems, and RTO (Regenerative Thermal Oxidizer) thermal storage combustion systems, wecontinuously upgrade our purication processes to reduce the generation and emission of waste gas.In addition, we regularly engage professional and qualied testing institutions to conduct monitoring of waste gas emissionsfrom our factories. These institutions prepare environmental monitoring reports and help us implement air pollutionprevention and control measures, ensuring that all waste gases meet the required emission standards.
Waste Gas Treatment
Jiangsu WOTE introduced an advanced waste gas treatment system,effectively reducing volatile organic compounds (VOCs)Case
To effectively reduce the emission of VOCs from the factory, Jiangsu WOTE invested CNY 2.3 million in zeolitemolecular sieve adsorption-desorption system + RTO (Regenerative Thermal Oxidizer) system. After pre-treatment,the organic waste gas is adsorbed and concentrated by zeolite molecular sieves before entering the RTO system.There, it is decomposed into CO2 and H2O through high-temperature oxidation, signicantly reducing waste gasemissions. The heat generated is stored in the regenerative heat storage medium to preheat incoming organic wastegas, thereby saving fuel consumption and reducing operating costs.
We always prioritize environmental protection and strictly abide by relevant laws and regulations, such as theWater PollutionPrevention and Control Law of the People's Republic of China,and theRegulations on the Administration of EmissionPermit. We have formulated management documents such as the Wastewater Management Control Procedureand theWastewater Pollution Management Systemto ensure that wastewater discharge meets national and local standards.
Wastewater Treatment
The canteen wastewater, after undergoing oil-water separation treatment, is combinedwith other domestic sewage. It is then treated by water treatment facilities to meetdischarge standards before being released into the municipal sewage network. Fromthere, it is conveyed to the municipal sewage treatment plant for centralized treatment.After meeting the required treatment standards, it is discharged into natural water bodiesfor recycling.
Domestic Wastewater Treatment
Huizhou WOTE ensures the efcient recycling of cooling water during the production process byintroducing advanced circulating water treatment technology. This achieves zero discharge ofindustrial wastewater from the projects.Chongqing WOTE classies and treats industrial wastewater to maximize water recycling efciencyand reduce wastewater discharge. For wastewater containing a high amount of flocculants,the sedimentation method is used. After sedimentation, the flocculants are transferred to thesubsequent sewage treatment process. For organic wastewater, the advanced MBR (MembraneBio-Reactor) biological treatment method is applied, which decomposes organic matter intoharmless substances through microbial metabolism.
Industrial Wastewater Treatment
The production wastewater is either reused or discharged into the municipal sewage networkafter being classied by the wastewater collection system and treated in compliance withthe municipal sewage network standards.Production Wastewater Treatment
Established a green production line for sodium treatment,achieving the recycling of wastewater
tons32,725.7
Total discharge ofindustrial wastewater
Advancing Green: Coexisting with Technology and Nature
We actively implement green operations, foster a healthy work environment, and strengthen education on resourceconservation to promote and embed the concept of conservation.
We prioritize the procurementof green products and phaseout high-energy-consumingofce equipment. We useair conditioning and lightingsystems judiciously to reducestandby energy consumption.Additionally, we promote theuse of energy-saving lights andair conditioners.
We promote a paperlessofce environment,encourage computer-baseddocument editing, andreduce the issuance of paperdocuments.
We advocate the use ofreusable ofce supplies andstrictly enforce the sortingand collection of recyclableand hazardous waste forstandardized disposal.Additionally, we prohibit theuse of disposable utensils inthe canteens.
Advocating for Green Office
SpreadingEnvironmentalProtectionConcepts
We demonstrate our commitment to environmental protectionby promoting green ofce practices and conserving biodiversity,thereby showcasing our social responsibility and our dedication togreen development.
We recognize the importance of protecting natural resources and biodiversity and strictly adhere to national ecologicalpreservation requirements. During the project site selection phase, we conduct ecological impact assessments (EIA)in compliance with the Technical Guidelines for Environmental Impact Assessment – Ecological Impact(HJ 19-2022).This ensures that, from the early stages of construction, projects avoid involvement with special or important ecologicalsensitive areas such as national parks, nature reserves, and ecological preservation redlines. We also implementeffective measures to minimize disturbance to the ecological environment and protect biodiversity. During the reportingperiod, no major incidents damaging biodiversity occurred.
Biodiversity Conservation
Energy conservationReducing wasteSaving paper
We adhere to the three principles of "reduction, harmlessness, and resource utilization" for solid waste management.We have developed theSolid Waste Management Control Procedureto clarify key waste management measures andprocessing procedures. We scientically store, transport, and dispose of waste, focusing on reducing waste emissions,ensuring long-term compliance with regulatory standards, and continuously improving resource utilization efciency.
For general solid waste that can be recycled and reused, such as scrap metal and plastic, we entrustprofessional third-party companies to handle the recycling and reuse. Non-recyclable general solidwaste is handed over to the environmental sanitation department for proper disposal.
For hazardous waste, we establish a detailed ledger, prepare an annual management plan, and set up acentralized management warehouse equipped with warning signs. We then entrust qualied third-partyorganizations to handle the disposal.
Waste Disposal
Harmless Waste Treatment
Hazardous Waste Disposal
Total amount of harmless waste:
709.2tons
Hazardous waste disposal rate:
100%
Total amount of hazardous waste:
248.5tons
Total amount of recycled waste:
2,693.4tons
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTAdvancing Green: Coexisting with Technology and Nature
Shaping Better Life Together
Our actions
Related Topics
Our performance
Contribution to the United Nations Sustainable Development Goals (SDGs):
WOTE is committed to shaping better life by delivering high-quality products and servicesacross the whole industrial chain, driving industry progress, fostering partner growth,sharing development outcomes with communities, and promoting high-quality industrydevelopment.
Deepening IndustrialAdvantagesPursuing Excellent QualityBuilding a Strong Security Line
Collaborating with the Industryfor Mutual Successline
Promoting TechnologicalInnovation
Caring for EmployeeGrowthActive Participation inSocial WelfareProviding High-quality Services
Product Safety and Quality, Customer Service and Rights, Innovative Development, SupplierManagement, Supply Chain Management, Social Welfare Activities, Employee Recruitmentand Employment, Employee Compensation and Benets, Employee Health and Safety,Employee Development and Training, Employee Satisfaction
95.85points
98.65% 6.10%
Customer satisfaction score
Total number of patents
Occupational diseaseincidence rate
Customer complaint resolutionrate
1,429Total number of employees bypost
Proportion of R&D investmentto operating revenueNumber of work-related fatalities
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Shaping Better Life Together
DeepeningIndustrialAdvantages
We are dedicated to providing world-class polymer material solutionsthat drive high-quality development across the whole industrial chain.
Through a multi-pronged platform strategy, we have established an industrial framework for special polymer material,including liquid crystal polymer (LCP), high performance polyamide (PPA), polyphenylene sulde (PPS), polysulfone(PSF), polyaromatic ether ketone (PAEK), and fluoropolymers (PTFE), while continuously expanding our specializedproduction capacities.
Improving the Product Matrix
2827
Self-developed Special Engineering Materials—PPA
The Company has realized the industrial chain layout of PPA material polymerization andcompounding. The rst phase of the Chongqing base has a production capacity of 5,000 tons of PPA,and the second phase of the 5,000 tons/year high-performance PPA project is under construction.The Company can independently develop multi-specication PPA materials, which have been appliedin the powertrain and electronic control systems of new energy vehicles, as well as in precisionconnectors, Type C, and other scenarios in the communication electronics industry, achievingcoverage in the elds of electronics and electrical, new energy vehicle components, and metalsubstitution.Self-developed Special Engineering Materials—PPSWith the rapid development of industries such as 5G communication, new energy vehicles, and consumerelectronics, the demand for PPS in the market continues to grow. The Company actively extends ourlayout towards high value-added PPS products through independent research and development, andexpands our PPS production line to meet customers' diverse product needs. In 2024, the Company's PPSproject entered the commercial application stage, and PPS materials were delivered in bulk.
Self-developed Special Engineering Materials—PSFPSF materials have become a critical choice in medical devices, aerospace, and other high-endmanufacturing sectors due to their superior properties. As the Company enhances its expertise in specialpolymer production and advances manufacturing technologies, it is actively optimizing PSF productionprocesses to integrate ESG principles across its operations.
Self-developed Special Engineering Materials—PAEK
With the rapid development of high-end manufacturing industries such as new energy vehicles, 5Gcommunication, aerospace, robotics and medical equipment, the demand for PAEK continues to grow.The Company further expands its high-performance material product line and plans to build a PAEKpolymerized resin production capacity of 1,000 tons. The rst phase of the production line has enteredthe trial production stage. Zhejiang Conceptfe has the production and processing capability for 100 tonsof PEEK proles, and is ready for the arrival of the mature stage of AI.
Improving the layout of Special Engineering
Materials—FluoropolymersBy acquiring Shanghai WOTE Huaben Semiconductor Technology Co., Ltd., the Company has improvedthe independent and controllable supply chain of high-performance fluorinated materials andaccelerated the application and promotion of special polymer materials in the semiconductor and ultra-high voltage elds. Zhejiang Conceptfe has the ability to produce 8,000 tons high-performance newmaterials annually, as well as 5G communication and semiconductor equipment.
Self-developed Special Engineering Materials—LCP
Faced with the dilemma of domestic high-performance polymer materials being dominated by others,the Company has acquired foreign LCP production lines and promoted the complete localization of LCPmaterials, thereby facilitating the localization and integration of 5G/6G and AI server materials.Withthe ongoing expansion of its Chongqing Production Base, the Company will reach an annual capacity of25,000 tons of LCP polymerized resin, positioning it as the world’s largest supplier of new, commerciallyviable LCP capacity.
All LCP products have obtained UL (Underwriters Laboratories) certication.LCP (KB40HF3) has obtained CQC (China Quality Center) certication.The Company is the rst enterprise in mainland China to obtain the EIS insulation system certication forLCP materials.Certied compliance with ISO 10993, NSF (National Sanitation Foundation), KTW (German Drinking WaterRegulations), WRAS (UK Water Regulations Advisory Scheme), and ACS (French Health Ministry DrinkingWater Contact Standards).
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTShaping Better Life Together
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We continue to enhance our research, development, production, and application of special polymer material solutions,driving high-quality transformation, upgrading, and sustainable development across application elds in industrialchains such as 5G/6G communications, low-altitude economy, new energy vehicles, computing servers, robotics, andsemiconductors.
Empowering the Development ofthe Industrial Chain
We are enhancing thermal managementsolutions for GPU/CPU and AI servers, effectivelyimproving the dimensional stability of AI opticalmodules under operational conditions.
We are delivering solutions for robot skeletonsand motor materials to meet customerrequirements in terms of strength, heatresistance, lightweighting, and fatigue resistance.
We have successfully developed eco-friendly spray-free interior materials and automotive antimicrobialmaterials, while deploying PPS and PPA applicationsin new energy vehicle powertrain and electroniccontrol systems to advance industry development.
We are providing material and process supportfor semiconductor devices, including componentssuch as cleaning chambers, piping, valves, andnozzles in semiconductor cleaning equipment,to enable efcient, stable, and innovativesemiconductor manufacturing.
PursuingExcellentQuality
Quality is the cornerstone of corporate development. We spare no effort inpursuing product quality by continuously enhancing quality managementand control, optimizing product quality, and earning customer and marketrecognition through superior quality standards.
We uphold the quality objective of "making WOTE a byword for leading supplier," implementing comprehensive qualitymanagement systems and control methodologies. We strengthen end-to-end quality control while continuously elevatingproduct quality and competitive capabilities.
Deepening Quality Management
WOTE has obtained ISO 9001 Quality Management System Certication and IATF16949 Automotive Quality Management System Certication.
Improving the qualitymanagement system
Strengthening productquality improvement
Developing qualitycontrol plansEstablish corporate headquarters and subsidiary-level Quality & Cost Management Committees todevelop robust quality management systems, controlmethodologies, and product quality managementprotocols, includingProcess ManagementProcedures, Product Inspection Control Procedures,andNonconforming Product Control Procedures.Annually set quality objectives with implementationplans and reinforce quality performance evaluations.
Develop quality control plans prior toproject execution and maintain thoroughdocumentation of quality controlprocesses during implementation. Throughstandardized project management, weensure quality across all phases, includingproject initiation, technical specications,quality control, and supervision.
Conduct monthly quality review meetings to analyze product defect root causes and implementcorrective actions. Perform regular quality enhancement initiatives spanning R&D, production,procurement, sales, and after-sales services, with monthly prioritization of TOP improvement initiatives.Implement quality improvement incentive programs to encourage employee participation in submittingoptimization proposals and driving continuous advancements in product quality and manufacturingprocesses.
We are capturing development opportunities inthe low-altitude economy by providing materialsolutions for core components, including aircraftfuselages, gimbals, and flight propulsion systems.We are promoting the application of LCPmaterials in 5G base stations, millimeter-wave radomes, electromagnetic shielding,high-speed copper cables, and Internet ofThings (IoT) signal transmission stations.
5G/6G &CommunicationApplications
AIComputing Applications
Applications intheLow-Altitude Economy
RoboticsApplications
New Energy VehicleApplications
Semiconductor Applications
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
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3231
To foster an environment that values, pursues, and emphasizes quality, we actively cultivate a quality culture throughregular "Quality Month" initiatives, enhanced quality management training, and the deep-rooted dissemination of "qualityawareness" across the organization.
Annual "Quality Month" activities strengthen quality consciousness through lectures, seminars,and workshops.Structured quality training programs systematically upgrade staff competencies and instill aquality mindset.
Continuous innovation targeting zero defects; a customer-focusedapproach ensuring satisfaction.Make WOTE a byword for leading supplier.
Cultivating Quality AwarenessImplementing full processquality management
Qualitypolicies
Develop a comprehensive quality management system that employs scienticmethodologies and standardized processes. Engage all employees in quality goalattainment throughout product lifecycles to deliver customer-satisfying outcomes.Qualitystrategy
Qualityobjectives
Creating aCulture of Quality
QualityTraining and Learning
Cultivating Quality AwarenessQuality Management Conference
New Product Quality Management
Supplier Quality Management
Production Quality Management
After-Sales Service Management
Develop new product development workflows and quality control methodologies. Formulatenew product testing plans under theManagement Measures of the Quality & Cost ManagementCommittee, conducting reliability testing, analysis, and evaluation reports for new technologies,materials, and processes.Implement supplier performance evaluation systems, raw material qualication assessments,and continuous improvement programs. Require suppliers to submit HSF (HazardousSubstance Free) compliance reports and execute binding Quality Agreements,EnvironmentalCompliance Agreements,andQuality Commitment Letters.
Standardize manufacturing processes and operational controls with ongoing siteimprovements. Utilize advanced production equipment and precision testing instruments toensure manufacturing quality.
Maintain structured customer complaint resolution procedures and corrective/preventive actionprocesses. Deliver responsive customer support with prompt verication of improvementmeasure effectiveness.
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
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ProvidingHigh-qualityServices
We prioritize service excellence through continuous renement ofcustomer engagement mechanisms spanning pre-sales, sales, andpost-sales phases. Our commitment lies in building mutually benecialpartnerships through a profound understanding of diverse client needsand consistent delivery of exceptional experiences.
We continuously improve our service management by clearly dening the standardized service processes for pre-sales, sales, and after-sales through procedures such as Customer-Related Process Control Procedure. This helpsus maintain effective communication and strengthen our client partnerships.
We place high priority on and promptly address customer feedback. TheCustomer Complaint, Return, and ProductRecall Operation Procedurehas been established to standardize handling procedures for customer complaints, returns,replacements, and product recalls. This ensures concrete actions to safeguard customer rights while continuouslyenhancing satisfaction and loyalty.
Understand customer needs and their productquality requirements through active visits,inquiries, and surveys.
Improving Service Management
Customer Complaint Handling
Collect market demand, technological trends, customer requirements, andother information through various channels; provide technical services tocustomers; identify and evaluate marketing risks and opportunities.
Handle quality, delivery, and other issues in accordance with theComplaintand Return Handling Operation Procedure; regularly conduct customersatisfaction surveys.
Conduct order review, production, delivery, and change communicationaccording to theOrder Processing Control Procedure.
Pre-salesDuringsalesAfter-sales
202220222023202320242024
Percentage of Total Products Sold orShipped Recalled Due to Safety andHealth Concerns (%)
Customer Complaint Resolution Rate (%)
98.23
98.50
98.65
Based on the non-conformitiesreported by customers, analyzethe root causes of defects andestablish containment actions,corrective actions, and preventivemeasures to resolve the issues.
Upon receiving a customercomplaint, immediatelycommunicate an exception handlingplan with the customer. Containmentmeasures shall be determined within24 hours, and aQuality AnomalyImprovement Reportshall besubmitted within 5 working days.
If customer feedback involves productquality or quality management systemissues, implement theCorrective andPreventive Actions Control Procedure.
The initial response to customercomplaints must be completedwithin 2 working days. Productreturn/exchange requests shall beprocessed in accordance with theOrder Handling Control Procedure.
Standardizing Service Processes
SmoothCommunication Channels
Standardizing the Complaint
Handling Process
Introduce information about the Company'sproducts to customers through online promotion,ordering events, exhibitions, and distribution ofpromotional materials, providing opportunities forcustomers to understand the products.
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Shaping Better Life Together
3635
We maintain proactive customer communication through theCustomer Satisfaction Survey Control Procedure, conductingannual satisfaction surveys. For dissatised feedback, immediate root cause analysis and improvement plans will beimplemented to ensure customer satisfaction.
Improving Customer Satisfaction
202220232024
Customer satisfaction (score)
94.49
95.36
95.85
Return, Exchange, Recall Processing
Customer request for
return / complaintRoot cause analysis& countermeasuresReply tocustomer
Follow-up
Effectivenessverication
Recurrence prevention/horizontal deployment
Case closure
On-site service
Return/complaintacceptance decision
NGNGNGOK
YESYES
InformationcommunicationCustomer replenishmentrequirement
Information collection
Factory notication
Customer Complaint, Return andProduct Recall Handling Process
Conrm the reason for return, quantity, and product status (raw materials / spruematerials). Implement quarantine of returned goods, conduct re-inspection ifrequired, issue aNonconforming Product Review Report, and relocate items tothe defective product zone.
For sold products with conrmed quality issues (via customer complaints orinternal audits), initiate recall procedures and promptly supply conformingproducts to meet customer needs.
Execute through theOrder Handling Procedure and arrange replacement.
Return
Exchange
Recall
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Shaping Better Life Together
3837
We aim to establish a leading "special polymer materials platform-based company" in the industry by continuouslyimproving innovation mechanisms, increasing R&D investment, strengthening staff development, stimulating innovativevitality, and advancing technological self-reliance and self-strengthening.
Improving the R&D System
PromotingTechnologicalInnovation
Innovation is the primary driving force for development. We havethoroughly implemented an innovation-driven development strategy,improved our R&D system, encouraged independent innovation, andcontinuously enhanced the Company's sustainable developmentcapabilities and core competitiveness.
R&D strategy
Research and Development Goals
R&D platform
R&D system
R&D team
Incentive mechanism
A customer-centered approach drives end-to-end material development based on customerrequirements, addressing critical customer needs to realize commercial value.
In developing eco-conscious product solutions, we focus on three key aspects: (1) enhancingenvironmental compatibility by restricting substances of concern (SoC), (2) improving product recyclability,and (3) ensuring full compliance with the Global Automotive Declarable Substance List (GADSL) and otherrelevant industry standards.Our energy efciency initiatives emphasize production process optimization through four strategicapproaches: (1) reducing energy consumption, (2) minimizing carbon emissions, (3) maximizing materialefciency, and (4) mitigating manufacturing waste streams.In material science innovation, we specialize in modied plastics and polymer materials development,and promote the R&D of new materials such as lightweight, high-temperature-resistant, and high-strengthmaterials to meet the high-performance requirements of the automotive and home appliance industries.
We maintain four national/provincial-level technological innovation platforms—National CNASLaboratory, Guangdong Engineering Technology Research Center, Guangdong Academician ExpertWorkstation, and Jiangsu Foreign Experts Studio—complemented by subsidiary R&D centers. Weoperate specialized R&D centers and pilot platforms for nylon polymerization, carbon ber composites,high-temperature material compounding, wear-resistant materials testing, 5G dielectric materialsevaluation, and structural fatigue analysis.
We have established comprehensive management frameworks, including theR&D OrganizationManagement System, Scientic Research Innovation Management Regulations, Patent ManagementSystem, Research Funding Management System,andImplementation and Reward System for theTransformation of Scientic and Technological Achievements.
Our team comprises renowned academicians, experts, and scholars in materials science, supported bymultidisciplinary professionals in polymer materials, chemical engineering, industrial design, materialsscience, analytical chemistry, and inorganic chemistry. This strategically structured team combinesbalanced age distribution, comprehensive expertise, and strong innovation capacity. We are proactivelydeveloping nanotechnology capabilities for future polymer applications through specialist recruitment.
We encourage free exploration and innovation through dedicated recognition programs that rewardteam members achieving breakthrough innovations.
Annual R&D investment: CNY
115.6445
million, accounting for
6.10
% of operating revenue.The Company has
R&D personnel, accounting for
18.75
% of thetotal number of employees
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Shaping Better Life Together
We actively participate in formulating industry standards, proactively undertake key core technology research projectsand national major science and technology programs, consistently promote the commercialization of scientic innovationachievements, steadily improve patent protection for independent innovation outcomes, and contribute to high-qualityindustry development.
Abundant Innovation Achievements
Obtained 6 high-tech enterprise certicationsHaving 5 specialized and innovative enterprisesTotal number of patents:416Undertaking national, provincial and municipal major technology research projects.
In our scientic research endeavors, we enhance governance over ethical norms and rigorously uphold the fourfundamental ethical principles: Respect, Non-malecence, Benecence, and Justice. This commitment fosters ahealthy, equitable, and well-regulated research ecosystem that advances the sustainability of scientic endeavors.
Adhering to Scientic Ethics
We ensure the preservation of autonomy, rightto informed consent, and privacy protectionthroughout new materials & technologicalinnovation and other research activities.
We are committed to minimizing physicalharm (including pain, suffering, disability,and mortality), psychological distress,and economic loss, while reducing publichealth risks to communities and preventingecological damage.
Respect PrincipleNon-Malecence Principle
Our research initiatives aim to expandscientic knowledge and develop newproducts and new materials that enhance thequality of life and well-being for humanity.
We implement equitable resourceallocation and maintain procedural fairnessin research processes, benet distribution,and outcome sharing.
Benecence Principle Justice Principle
We have achieved technologicalbreakthroughs in corecomponents for LED lighting,optical ber communication,semiconductor packaging,lithium battery packaging, anddrone applications.
We encourage innovativethinking, actively conductinnovation proposal campaigns,and vigorously advancethe practical applicationof specialized R&D projectoutcomes.
We cooperate with patentagencies to le patentapplications for innovativediscoveries during R&D. In2024, we were granted 18authorized invention patentsand 6 utility model patents.
Innovationbreakthroughs
Achievementconversion
Patentprotection
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTShaping Better Life Together
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WOTE Huaben has completedthe three-level review of worksafety standardization.
We consider safety as our cornerstone by intensifying work safety management, establishing sound work safety rules andregulations, enhancing the identication and remediation of major risks and potential hazards in work safety, optimizingwork safety conditions, and ensuring work safety operations.
Implementing Work Safety
Buildinga StrongSecurity Line
Security serves as the prerequisite for development, while developmentprovides the safeguard for security. We consistently uphold the principle of"safety rst," strictly comply with national laws and regulations, includingtheWork Safety Law, continuously rene our safety management system,cultivate a safety culture, and safeguard the safety lifeline.
We have established a Safety Management Committee to rigorously implement work safety management.The EHS (Environment, Health, and Safety) management system has been piloted at production bases withdened assessment objectives, requiring full compliance with environmental, health, and safety standardsthroughout manufacturing processes.
A comprehensive framework has been developed, encompassing work safety evaluations, objectivemanagement, resource allocation, hazard identication, emergency response protocols, and major dangersource controls. All safety operation procedures and emergency plans have been systematically updated.A safety accountability system has been implemented with clearly dened responsibilities and designatedpersonnel, supported by multi-level safety commitment agreements that assign individual safetyresponsibilities.
Establishing a safety management framework
Improving safety regulations and systems
During the reporting period, the numberof work-related fatalities was
Addressed diverse material requirements ofcustomers through innovative formula design andimproved dielectrically controllable materials.
Entered the automotive new energy battery sectorby achieving breakthroughs in insulating LCP,helping customers enhance product yield rates.
High-Frequency TransmissionDielectrically Controllable LCP Project
Battery Component Project
图图图图图
Company R&D team
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTShaping Better Life Together
4443
Safety Publicity and EducationSafety Emergency Drills
We strengthen the safety management of hazardous chemicals by ensuring chemical safety across all processes,including procurement, storage, usage, transportation, and disposal, thereby safeguarding production facilitiesand personnel safety.
Ensuring Chemical Safety
The implementation is supervised by subsidiaries' EHS Committees or Environmental ManagementCommittees. We have established control systems such as theChemical Management Control ProcedureandEmergency Response Plan for Hazardous Chemical Accidents. We strictly refrain from purchasingor using chemicals listed inChina's List of Strictly Restricted Toxic Chemicals or substances prohibited/restricted by customer requirements. All chemical procurement, transportation, storage, and usageactivities strictly comply with national chemical regulatory requirements.Regular chemical spill drills are conducted to enhance staff emergency response capabilities and mitigateaccident risks.
Ensuring work safety fundamentally relies on human factors. We have implemented a comprehensive safety trainingsystem, organizing various activities, including safety education programs, emergency drills, and "Work Safety Month"campaigns, to embed a safety culture, improve employees' safety awareness and competencies, and collectively maintaina safe, orderly, and harmonious production environment.
New employees undergo three-tiered safetyeducation and training. Prior to assuming duties,all new hires must complete at least 72 hours ofsafety training covering corporate safety culture,fundamental safety knowledge, and job-specicsafety operation procedures.Regular operational safety training is provided toemployees, supplemented by plant-level safety andenvironmental education sessions with periodicassessments to reinforce work safety awareness andpersonal protective capabilities.
We have improved emergency plans by developingspecic response measures for various accidentscenarios, including res, explosions, and mechanicalinjuries. These measures clearly dene emergencyresponse organizations' responsibilities, operationalprocedures, and resource allocation requirements.Specialized emergency drills are conductedenterprise-wide, covering re evacuation, seasonalre prevention, gas leak response, conned spaceoperations, radiation leaks, and special equipmenthandling. Participation in emergency skillscompetitions further enhances staff emergencyresponse and incident management capabilities.
Cultivating a Safety Culture
A structured safety inspection plan has been prepared, featuring quarterly workshop inspections led by theGeneral Manager and monthly factory-wide inspections conducted by the Safety Management Department.A hazard identication and resolution mechanism has been established with active employee participation inhazard detection processes.
Strengthening safety inspections and hidden danger screening
Workplace safety risk assessments have been conducted with particular emphasis on water and electricalinstallations. WOTE Huaben has successfully completed the archival ling of itsRisk Classication andControl Evaluation Report.
Conducting security risk assessment
Safety infrastructure development has been enhanced through the implementation of rigorous facilitymaintenance protocols. Dedicated personnel have been assigned for daily inspections and maintenance ofsafety equipment, complemented by periodic testing of re alarm systems and re suppression apparatus.
Regularly maintaining safety facilities
21,676.2
hours14.68hours100%
Huizhou WOTE Fire DrillVietnam WOTE Fire Drill
Safety trainingthroughout the year
Average duration of safetytraining per person
Employee safetytraining coverage rate
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTShaping Better Life Together
4645
We have always prioritized the health and safety of our employees, committing to providing comprehensive health andsafety protections while creating a healthy and secure working environment.
Ensuring Occupational Health
Improving the occupational health management system
Implementing occupational health monitoring
Establishing emergency response plans for occupational disease hazard accidents
Carrying out identication and control of occupational hazard factors
We strictly implement occupational health and safety management in compliance with ISO 45001requirements, establishing a robust occupational health management system. This system includestheSafety Management Regulations, Occupational Health Check-up Regulations, Occupational DiseasePrevention Guidelines, Occupational Hazard Disclosure Policy, andOccupational Health SurveillanceArchives Management Regulations, ensuring institutional safeguards for employee health and safety.
We have set annual and monthly targets, implementing controls aligned with established indicators andmanagement plans. Through regular monthly EHS activities, inspections, and indicator verication, wesystematically reduce risks while ensuring employee health and safety.
Organizing occupational health promotion and educationNew employees receive pre-employment occupational health training followed by regular refreshersessions during employment to strengthen occupational disease prevention awareness.Annual specialized occupational health training is conducted, supplemented by knowledgedissemination through internal workshops, informational posters, and educational brochures.
Workplace hazard identication and control processes designate dust, noise, and chemical toxins asprimary occupational disease hazards, with corresponding mitigation measures implemented.Regular third-party testing of occupational hazard levels is conducted in work places, withappropriate personal protective equipment provided to all employees.
Employees undergo mandatory occupational health examinations at three stages: pre-employment, duringemployment, and post-employment. We maintain individual occupational health monitoring les documentingexamination results, occupational hazard exposure history, and related information for each employee.
A comprehensive emergency response plan for occupational hazard incidents has been established,specifying emergency procedures, rescue protocols, and personnel responsibilities to minimize healthimpacts on employees.
Developing occupational health and work safety management objectives
100%
Employee work-related injuryinsurance coverage rate
100%
Detection rate of occupationalhazards in the workplace
100%
Occupational health examination rate foremployees exposed to occupational hazards
Occupational diseaseincidence rate
100%
Establishment rate of employeeoccupational health monitoring records
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
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Collaborating withthe Industry forMutual Success
We rmly believe that cooperation and knowledgesharing drive sustainable development forenterprises, industries, and society. Treatingsuppliers as strategic partners, we implementresponsible supply chain management. Throughdeep collaboration with industry experts and jointresearch initiatives, we advance technologicalinnovation to guide industry development.
We continuously improve the supplier lifecycle management system, dening supplier development, qualication,evaluation, and exit procedures through the Supplier Management Control Procedure. We prioritize building a robustsupplier management framework, establishing strategic partnerships with suppliers to ensure stable productionoperations.
We actively engage in strategic cooperation and communication with partners including universities, research institutions,and industry experts, working together to build sustainable partnerships.
Building a Responsible Supply Chain
Deepening Cooperation and Communication
Proportion of overseassuppliers
5.53
%
Proportion of domesticsuppliers
94.47
%
Proportion of core key suppliers evaluatedby the Company's evaluation system
%
We collaborate with leading researchinstitutions, including the National InnovationCenter for Advanced Medical Devices, JilinUniversity, and Shenzhen University, toadvance material innovation and support theCompany's high-quality growth.
We collaborate with Beijing University of Aeronautics andAstronautics on cooperation related to ESG initiatives andcorporate social responsibility. Our joint research aims todevelop strategies that promote sustainable enterprisegrowth in the new materials sector by: aligning with nationalindustrial development strategies and enhancing corporatesocial responsibility. These efforts will provide actionableinsights for new materials enterprises to formulate sustainabledevelopment strategies.
We continuously optimize the supply chain structure by establishing an alternative supplier database forcritical materials, and progressively implementing domestic substitution of imported materials to reduceprocurement risks and ensure supply chain independence and controllability.We strengthen supply chain risk identication and management by developing the Harmful SubstanceIdentication and Risk Assessment Procedure to mitigate material risks, while conducting riskassessments and audits for critical suppliers to prevent supplier-related risks.We establish framework agreements with key strategic suppliers to form long-term collaborativepartnerships, implement regular visitation and communication mechanisms with suppliers, and enhancetheir compliance capabilities.
Continuously optimize the supplier database through evaluation of potential suppliers. Selected suppliersmust, in principle, obtain ISO 9001, ISO 14001, and ISO 45001 certications. Automotive material suppliersmust additionally obtain IATF 16949 certication. Priority is given to suppliers holding QC 080000 and RBAcertications, with active encouragement for suppliers to pursue relevant system certications.To ensure raw material compliance with quality and environmental requirements, suppliers must provideHazardous Substance Free (HSF) reports andexecute Quality Agreements, Environmental ProtectionAgreements,andQuality Commitment Letters.Electronics industry material suppliers must additionally signthe Responsible Business Alliance (RBA) Code of Conduct Commitment Letter.Conduct semi-annual or annual assessments for all activesuppliers according to the SupplierComprehensive Evaluation Criteria.Suppliers in Category B undergo semi-annual evaluations. Those with subpar results face procurementreduction/suspension and enhanced oversight.Annually select 10-20 Category B suppliers for on-site audits using theSupplier Site Audit Checklist.
Suppliers with unsatisfactory audit results are added to theAnnual Supplier Optimization Listand requiredto implement corrective actions.Suppliers failing to maintain ISO 9001 certication, experiencing major batch quality issues, ordemonstrating poor performance in semi-annual/annual audits are listed in theAnnual Supplier OptimizationList.Failure to achieve satisfactory improvement within specied timelines triggers exit procedures.Suppliers with no business activity for two consecutive years enter exit procedures. Subsequent cooperationrequires a full reintroduction process.
Supplier Development and Selection
Strengthening supplier management
Enhancing the resilience of the supply chain
Supplier Performance Evaluation
Supplier Exit Mechanism
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5049
Caring forEmployeeGrowth
We adhere to the "people-oriented" principle, committed tocreating an equal and inclusive workplace environment, improvingcompensation and benets systems, establishing comprehensivetalent development platforms, expanding recruitment channels, andattracting exceptional talents. Simultaneously, we provide employeeswith healthy and comfortable working conditions, laying a solidfoundation for both enterprise and employee development.
We strictly comply with laws and regulations, establishing institutional frameworks that include theHuman ResourcesManagement Systemandthe Employee Handbook.Labor contracts are executed in accordance with the law toimplement employment standards, ensuring non-discrimination in recruitment and workplace practices based onethnicity, race, gender, or religious beliefs. Equal employment opportunities are provided to safeguard the legitimaterights and interests of employees.
Protecting Employee Rights and Interests
Composition of employees by age
269 219
941Below30(Including30)
Above 5030-50(Including50）
Composition of employees by educational
background
SecondaryVocationalEducationandBelow
Bachelor's degree Junior college degree Master's degree Doctoral Degree (Ph.D.)
265 177
Composition of employees by profession
Production staffFinancial staff Administrative staff
Technical staffSales staff
Proportion of middle and top managers
%Total Number of Employees by Post 1,429
Number of women in middleand top managers
Proportion of employees from ethnicminorities2%
Proportion of disabled employees
0.2
%
Labor contract signing rate
%
Proportion of local employees
%
Percentage of employeeswith social insurance
%
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTShaping Better Life Together
5251
Implementing labor standards
Promoting flexible employment
Improving the salary system
Implementing democratic management
Employment opportunities are provided to retired employees through a re-employment system, andinternship opportunities are offered to recent university graduates to lay the foundation for their careerdevelopment.
We continuously optimize theCompensation Management System, Performance Evaluation andManagement System, Notication on Supplementary Explanations and Bonus Point Rules for thePerformance Management System, Incentive Mechanisms,to ensure salary growth aligned with employeecapabilities and achievements. Annual salary adjustment principles are established accordingly.We have developed a scientically structured and equitable compensation system that ensures employeesreceive rewards commensurate with their contributions, professional competencies, and marketvalue through multidimensional value assessment. Concurrently, we have established a dual-drivenmodel integrating short-term performance incentives with long-term developmental rewards, therebycontinuously enhancing organizational talent attractiveness and sustaining workforce vitality.
A trade union facilitates communication channels, including staff and workers' representativecongress, staff assemblies, departmental meetings, and suggestion boxes. Employee suggestions arecollected quarterly and feedback is provided in a timely manner, creating favorable conditions for staffparticipation.Leadership-employee communication is enhanced through improved chairman liaison mechanisms,utilizing forums, office meetings, and surveys to collect feedback and ensure the protection ofemployees' rights to information, participation, expression, and oversight.An employee proposal system encourages staff participation in factory management through the "IContribute a Strategy to WOTE" initiative, fostering a sense of ownership in democratic governance.
We attach great importance to the development of a talent echelon, consistently intensify talent cultivation efforts, andstrive to build a high-caliber talent team. We streamline employee promotion channels, stimulate talent vitality, andachieve the organic integration and mutual reinforcement between individual career growth and corporate development.
Supporting Employee Development
Having successfully obtained the designation as an"Operating Base of the High-level Creative Talents PracticeProgramme of Nanshan District of Shenzhen," we vigorouslyimplement the talent-priority development strategy. Thisinitiative strengthens talent recruitment and cultivation inkey enterprises and research institutions within strategicemerging industries, future industries, modern servicesectors, and other critical elds, while fostering a favorableecosystem for high-level innovative talents.
The Company has been ofcially recognized asan "Operating Base of the High-level CreativeTalents Practice Programme of Nanshan District of
Shenzhen".
We rigorously comply with international conventions and domestic legislation, explicitly prohibiting childlabor and forced labor. Regular employee verications are conducted, with immediate cessation andcorrective actions taken upon identifying any violations.
Employee training expenses CNY839,600
Employee training coverage rate
%
Number of employee trainingsessions
Implementing the strategy of prioritizing talent development
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Shaping Better Life Together
5453
With clearly dened incentive principles, we have optimized annual bonus schemes to ensure appropriaterecognition for top performers. During the reporting period, the Company implemented an employeeshare ownership plan, which fully mobilized the enthusiasm and creativity of the company's managers andemployees.
Performance targets and directionsare claried. The management teamsigns annual target responsibilityagreements and decomposes thetargets hierarchically.
We conduct regular performancedialogue sessions betweenleadership and employees, organizeperformance review meetings,and validate the effectiveness ofperformance outcomes.
We value employees' appealsand ensure the fairness ofperformance appraisal.
We continuously rene our training framework, providing employees with a comprehensive career-long education systemthat encompasses onboarding training, job-specic skill development, industry certications, and cross-functionaltransition programs. This ensures that employees acquire the competencies essential for role prociency.For new hires, we implement customized development plans to facilitate their swift transition from academia toprofessional practice.
We have established a fair, just, and transparent skill grading system for frontline employees andconstructed learning pathways based on the job qualication standards. With capability developmentas the main axis, we provide a range of training and learning opportunities. This enables employees tovisualize the skills required at each stage of their career progression, from new hires to procient workersand key business personnel, thereby promoting employee learning and development.
Chairwoman Wu Xian's Management Empowerment Training
Strategic Thinking and Execution Training
Multi-dimensional Project Management Training
Conducting Regular TargetReview Sessions
Improving PerformanceEvaluation System
Setting Performance AppealChannels
New social recruitmentpersonnel job trainingEach institution conducts targeted training for new job positionsNewEmployeeTraining
New campus recruitmentpersonnel rotation training
Business management: Leadership development through corporate
business analysis forumsProject management: Organizational-level project management
capability enhancement
Manu-facturingsequencetraining
Professional
Sequence
Training
EmpoweringManagement
R&Dsequence
training
Qualitycontrolsequence
training
Salessequencetraining
Technicalsequencetraining
Financialsequencetraining
HR se-quencetraining
Procure-mentsequence
training
Improving the training systemBuilding a learning path
Strengthening talent incentives
Strengthening performance evaluation
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Shaping Better Life Together
5655
We strive to create a better life for our employees by continuously enriching welfareprograms, providing humanized care, assisting in resolving practical difculties,enriching cultural activities during leisure time, fostering a strong "family" cultureatmosphere, and enhancing overall cohesion and centripetal force.
Caring for Employee Life
Jiangsu WOTE's employeesatisfaction rate for
99.8%
Improving employees' benefits
Enriching employees' lives
We have established a diversied welfare system, including summer heat subsidies, birthdaybenets, expatriate allowances, and holiday bonuses. Employees enjoy access to freshlyground coffee machines, daily herbal tea selections, and seasonal specialty beverages toboost workplace motivation and satisfaction.
Through the WOTE Love Fund, we support employees facing life difculties. A systematiccondolence allowance policy has been implemented, providing nancial assistance andcompassionate leave for weddings and funerals involving employees and their families.
Facilities include dedicated reading rooms and table tennis areas. Regular birthdaycelebrations, team-building events, and social gatherings are organized, complemented byannual staff travel programs to strengthen a sense of belonging and happiness.
Company Annual Meeting International Rubber and Plastic Exhibition
ActiveParticipationin SocialWelfare
Rooting corporate social responsibilityin our DNA, we practice the corporatespirit of "Kindness, Harmony,Dedication," driving sustainablebusiness initiatives. Our philanthropicefforts span industrial chaindevelopment, education support, andpoverty alleviation.
Chairwoman Wu XianAdvocates for the "SouthernChina Caring Mothers" PublicWelfare Project, JointlySupporting Women andChildren
In 2019, we co-established theShenzhen Charity Association· WOTE Public Welfare Fund,sustaining material donations forsocietal betterment. In 2022, wepartnered with the CAS ShenzhenInstitutes of Advanced Technologyalongside three other enterprisesto establish the Women's ScienceInnovation Fund. We also activelyparticipated in various publicwelfare initiatives, providingsubstantial support throughoutthese activities. Contributions toShenzhen Women & Children'sFoundation, and the "WOTEScholarship" program cultivatehigh-caliber talents.
In October 2024, to strengthenautonomous control over rawmaterials for our special polymerproducts and bolster ongoingdevelopment of new technologies andproducts, we donated CNY 1 millionvia the HIT Education DevelopmentFoundation to bolster organic polymermaterial research and development atHIT (Shenzhen).
For threeconsecutive years,we supportedthe "ThousandLove Actions" and“Poverty Alleviation”education initiativeby Beijing ShenggenKindness & WisdomFoundation.
I have always maintained that championing compassion holds vital signicance forenterprises. We aspire to unite partners who share congruent values to forge sharedpaths. Therefore, WOTE consistently advocates cultivating benevolence and implementingethical actions within our sphere of influence.“
“
In 2024, a public welfare and charitydonation of CNY
1,2 94,000
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTShaping Better Life Together
——Chairwoman Wu Xian
Transparent Governance:
Building a Solid Foundationfor High-Quality Development
Improving Corporate GovernancePreventing Compliance RisksProtecting Investors' Gights and Interests
Business Ethics CommitmentEnsuring Information Security
Corporate Governance, Risk Compliance, Stakeholder Management, Business Ethics
Convened9 BoD Meetings and deliberated 48 proposalsConvened8 BoS Meetings and deliberated 27 proposalsConvened4 General Meetings and deliberated 23 proposals
Sound corporate governance forms the cornerstone of enterprise development.Adhering to our corporate tenet of "Honesty and Self-Discipline, High Efciency,"WOTE continuously renes the governance system, strengthens compliancemanagement capabilities, enhances investor relations practices, and steadfastlysafeguards the interests of the Company and all shareholders.
Transparent Governance: Building a Solid Foundation for High-Quality Development
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Our actions
Related Topics
Our performance
Contribution to the United Nations Sustainable Development Goals (SDGs):
6059
ImprovingCorporateGovernance
Scientic and modernized governance serves as the cornerstonefor efcient and stable corporate operations. We persistentlyoptimize our governance system by improving the modernenterprise framework with Chinese characteristics, grounded inthe Articles of Association, to elevate governance standards.
In strict compliance with relevant laws and regulations, including theCompany Law of the People's Republic of China, theSecurities Law of the People's Republic of China,and theCode of Corporate Governance for Listed Companies,we haveestablished a well-dened corporate governance structure. This structure comprises the General Meeting, the Board ofDirectors (BoD), the Board of Supervisors (BoS), and the Executive Management, ensuring standardized operations withclearly delineated responsibilities.
We nominate and elect Directors in compliance with the Company's Articles of Association, fostering a diversied BoDcomposition that delivers comprehensive perspectives and professional excellence. The BoD maintains the requisiteindependence to ensure objective judgment and scientic decision-making in researching and deliberating major topics.
We prioritize continuous professional development for directors, supervisors, and senior managers through regulartraining programs organized by securities regulatory bureaus, stock exchanges, industry associations, and externalinstitutions. These initiatives enhance governance capabilities and regulatory compliance.In addition, to enhance the professional knowledge and performance capabilities of directors, senior managers, andrelevant department staff in ESG, we regularly conduct specialized training sessions facilitated by external experts,covering ESG development trends, implementation strategies, and best practices from leading companies, continuouslyimproving the Company's ESG management level. During the reporting period, 26 professional training sessions werecompleted for directors, supervisors, and senior managers.
The Board of Directors oversees four specialized committees: the Strategy Committee, the Nomination Committee, theRemuneration and Assessment Committee, and the Audit Committee. Independent directors chair the Audit, Nomination,and Remuneration and Assessment Committees and constitute the majority of each committee's membership. Eachcommittee rigorously fullls its duties in accordance with theArticles of Association, Rules of Procedure,and operationalguidelines, providing professional recommendations to support the BoD's informed decision-making.During the reporting period, we improved key governance documents, including theArticles of Association and theBoard of Directors' Rules of Procedure,to align with evolving regulatory requirements and operational practices.These enhancements further improved the operational efciency and procedural rigor of the BoD and its committees,strengthening overall governance efcacy.We remain committed to optimizing the BoD's composition and ensuring compliance in the BoD and the BoS successionplanning, thereby maintaining governance continuity and stability. In 2024, the Company successfully completed there-election of the BoD and the BoS, along with executive appointments, ensuring a seamless transition and sustainedorderly operations of the corporate governance structure.
Corporate Governance System
Professional Capability EnhancementConvened 9BoD Meetings and deliberated48proposalsConvened8 BoS Meetings and deliberated 27 proposals
Corporate Governance Structure Chart
General MeetingBoard of Directors
Board of Supervisors
BoD Office
Strategy CommitteeNomination CommitteeRemuneration and Assessment
CommitteeAudit Committee
General Manager
Effectiveness of the Board of Directors
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
The Company has establishedtheSpecial Meeting Proceduresfor Independent Directors andhas correspondingly amendedthe Independent Director WorkSystem.These regulations stipulatethat Independent Directors mayserve on the boards of up to threedomestic listed companies. Asof the reporting period, the BoDcomprises 7 members, including 3Independent Directors (42.86%),satisfying regulatory requirementsfor independent oversight.
In accordance with theArticles of Association,BoDdiversity is evaluated acrossmultiple dimensions, includingprofessional expertise, skills,and knowledge, tenure,regional representation,cultural background,educational qualications,gender, and age. Currently,female representation standsat 14.29%, with one femaleDirector.
The current BoD demonstratesmultidisciplinary excellencein business administration,materials science, economics,accounting, and legal affairs.Over 50% hold postgraduatequalications, with IndependentDirectors being renowned expertsin their respective elds. Thiscomposition ensures informeddecision-making grounded inprofessional rigor.
Independent Directors Diversication of DirectorsProfessional nature of directors
BoD Composition
DirectorIndependent
Director
MaleFemaleBelow 50
Above 60
50-60
Transparent Governance: Building a Solid Foundation for High-Quality Development
Convened 4 General Meetings and deliberated 23 proposals
6261
We maintain rigorous compliance governance by establishingcomprehensive management systems, including theInternal AuditManagement System and the Major Information Internal ReportingSystem.These systems enable us to proactively identify potentialissues and risks in our operations and to promptly implementrectication actions. By doing so, we enhance the company's ability torespond to risks, thereby supporting our stable operation and high-quality development.
We safeguard investors' right to informationthrough institutional mechanisms, maintainopen communication channels with investors,continuously enhance the quality and transparencyof information disclosure, and effectively protectthe legitimate rights and interests of investors.
In strict compliance with laws and regulations, including theSecurities Law of the People's Republic of China and theAdministrative Measures for Information Disclosure of Listed Companies,we have established governance frameworks suchas the Information Disclosure Management System and theInformation Disclosure Suspension & Exemption ManagementSystem.Adhering to the principles of fairness, openness, and impartiality, we present comprehensive corporate informationto investors in an objective, truthful, and accurate manner.
Establish and improve risk assessment and preventionmechanisms, and regularly hold risk assessment meetingsto enhance the Company's ability to prevent and resist risks.Delegate the headquarters audit departmentto provide business guidance and supervisionevaluation to each subsidiary, and strengthen the riskmanagement capabilities of relevant personnel fromtop to bottom.
Conduct independent audits on the internal controls, nancialinformation, and operational efciency of subsidiaries inaccordance with national regulations and corporate policies,ensuring compliance and asset security.Regularly conduct internal control self-assessmentwork, reviewing the internal control system of theCompany and our afliated units from three aspects:
appropriateness, legality, and effectiveness, andassessing the risks faced in the Company's businessprocesses.Hire professional third-party organizations to conductexternal audits and further increase the intensity ofreview.
PreventingComplianceRisks
ProtectingInvestors' Rightsand InterestsCompliance Information Disclosure
Through multi-channel investorengagement via our corporate website,dedicated hotline, email communications,CNINFO information network, ShenzhenStock Exchange Interactive Platform,Investor Open Day events, andperformance briengs, we actively manageinvestor relations to foster sustainablepartnerships.
We are keenly aware that listed companies serve as the cornerstone of capital market development. It remains thefundamental responsibility of listed companies to provide investors with reasonable investment returns and opportunitiesto share in the fruits of economic growth. While ensuring sustainable development, we provide consistent and stablereturns to shareholders through cash dividends and share repurchases.
"Best Practice Case of BoDOfce for Listed Company"for two consecutive years byChina Association for Public
Companies
5A rating in the BoD SecretaryPerformance Evaluation forlisted companies
During the reporting period, we disclosed 145regulatory announcements and supportingdocuments, none of which required correctionsor prompted inquiries from regulatory bodies,including the China Securities RegulatoryCommission, Shenzhen Securities RegulatoryBureau, and Shenzhen Stock Exchange.
Smooth Communication Channels
Valuing Shareholder Returns
We have maintained the highest "A"
(Excellent) rating in Shenzhen StockExchange's information disclosureassessment for three consecutive years.
We have maintained uninterrupted cashdividend distributions for eight consecutiveyears. Under the 2024 profit allocationproposal, the Company plans to distributeCNY 0.42 per 10 shares (tax inclusive). Thecash dividends and share repurchases areequivalent to approximately 112.17% ofthe Company's 2024 net profits attributableto listed company shareholders.
Cash DividendsWe implemented a share repurchase plan in2024 to boost investor confidence. Duringthe reporting period, a total of 2.2147 millionshares of the Company were repurchased,with a total amount of funds used of CNY29,996,043 (excluding transaction costs).
Share Repurchase
Training on Integrity and Risk Control at WOTE
Strengthening Prevention MechanismsIdentifying Risks Accurately
Conduct follow-up audit supervision on issues discoveredduring the audit or review process, supervise and inspectthe adoption of audit opinions by relevant units, andcontinuously monitor the effectiveness of their rectication.
Supervising Optimization and Rectification
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTTransparent Governance: Building a Solid Foundation for High-Quality Development
6463
Business Ethics Management
Anti-Corruption & Anti-Fraud
Anti-unfair Competition Compliance
Conflict of Interest Management
Integrity Education Program
We strictly comply with laws and regulations, including theCybersecurityLaw of the People's Republic of China,establishing and improving aninformation security management system, consistently enhancinginformation security capabilities, and elevating information securitystandards. In 2024, no information leakage incidents occurred.
We have formulated theInformation SecurityManagement System,covering aspects such ashardware management,software management,network management,data securitymanagement, emailmanagement, and accesscontrol, establishingunied informationsecurity norms andstandards.
We implement encryptionfor sensitive data andhierarchical accesscontrols based onsecurity clearance levels,restricting critical dataexclusively to authorizedpersonnel. Networkaccess requires priorauthorization, prohibitingunauthorized externalnetwork connectionsor resource sharing tomitigate informationleakage and unauthorizedaccess.
We have established adedicated informationsecurity managementteam. The IT Group of theAHR Management Centeris tasked with informationsecurity protectionand has been grantedcorporate informationsecurity oversightauthority. Departmentheads are accountablefor reviewing specialaccess requests andenforcing strict controlson information usage.All employees followthe "Accountability ofUsers" principle to ensurestandardized utilization ofinformation resources.
We conduct regularemployee cybersecuritytraining, mandatingstrict compliance withestablished protocols forinformation protectionand explicitly prohibitingthe disclosure, trading,or misuse of condentialdata.
Reporting and Whistleblower Protection
Strengthened
InstitutionalManagement
Access ControlDenedManagementResponsibilities
SecurityAwarenessCultivation
Organized anti-corruption trainingsessions
Coverage rate ofemployee businessethics training
Anti-monopoly Training by Huizhou WOTE
Upholding business ethics constitutes afundamental obligation and social responsibilityfor corporates. We consistently regulate businessconduct, cultivate a workplace culture of integrityand transparency, and strictly adhere to the ethicalbaselines of compliance and fair competition.
All employees are required to strictly comply with applicable laws and internal governance documents, includingtheEmployee HandbookandWOTE Employee Integrity Compliance Code,with explicit prohibitions against bribery,embezzlement, extortion, or fund misappropriation. Procurement staff must execute Employee Integrity Pledges,while suppliers are contractually bound byVendor Integrity Agreementsto ensure ethical operations.
In full alignment with theAnti-Unfair Competition LawandAnti-Monopoly Law of the People's Republic of China,
we implement equitable competition mechanisms that foster win-win collaboration across whole industrial chains.
Senior executives (Director-level and above) must proactively disclose actual or potential conflicts of interest,following established compliance procedures. Employees are prohibited from placing immediate family membersin positions at partner organizations.
Designated as an annual disciplinary education initiative from August to September, this mandatory trainingreinforces anti-corruption awareness among Party member executives through systematic integrity cultivation.
Business EthicsCommitment
EnsuringInformationSecurity
100%
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Transparent Governance: Building a Solid Foundation for High-Quality Development
Multiple reporting channels (email, hotline,fax, mail) enable employees and businesspartners to submit real-name or anonymousdisclosures of suspected violations toInternal Audit. All reports receive promptinvestigation with stringent enforcementagainst ethical breaches.We ensure: Impartial case handling inaccordance with regulatory requirementsand due process; Strict condentiality ofreporter identities and case details; Legallymandated protections against retaliation.
E-mail： lianjie@wotlon.comTel：0755-26880862Fax：0755-26880966
Postcode: 518052
Letter address: Room 3101, Block B, Building 9, ZoneC, Phase III of Vanke Yuncheng, Liuxin 4th Road, XiliCommunity, Xili Sub-district, Nanshan District, ShenzhenCity (Room 3101, Block B, Building 7, InternationalInnovation Valley)
Outlook for 2025
Outlook for 2025
2025 marks the concluding year of the 14
th Five-Year Plan and the preparatory phase for the 15
th
Five-Year Plan.Amidst global transformations, emerging technologies such as 5.5G/6G communications, robotics, new energy, andAI are propelling human advancement.Navigating this era, we will align with global trends, adhere to our core values of " Be Unique for You," and pursue ourmission of "Shaping Better Life". By seizing opportunities and advancing the integration of technology and industry,we will accelerate our transformation through the "Industrial and Supply Chains" strategy. Focusing on high-techspecial polymer materials and centering on customer needs, we aim to enhance our core competitiveness, delivertechnological innovations, expand market frontiers, fuel high-quality corporate development, provide cutting-edgematerial solutions, and generate sustained value for investors.
Index Table for theSelf-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—SustainabilityReport (For Trial Implementation)Indicator Index
Dimension TopicReport Page No.
Environment
Climate responseP13-14Pollutant dischargeP21-23Waste disposalP23Ecosystem and biodiversity protectionP24Environmental compliance managementP15Energy utilizationP17-18Water resources utilizationP19Circular economyP20、P24
Community
Rural revitalization——Social contributionsP56InnovationP27-29、P37-41Ethics of science and technologyP39Supply chain securityP47-48Equal treatment of SMEsP48Product and service safety and qualityP30-36Data security and customer privacyP64EmployeesP42-46、P49-55
Sustainability-relatedgovernance
Due diligenceP61Stakeholder engagementP10Anti-commercial bribery and anti-corruptionP63-64Fair competitionP63
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
6867
Feedback Form About this ReportDear readers,Thank you for reading WOTE Environmental, Social, and Corporate Governance (ESG) Report 2024. In order to gain adeeper understanding of your expectations and demands for our work, we sincerely delighted to listen to your commentsand suggestions on the Report. Every suggestion you provide is helpful to us. We look forward to your generous guidance!
You can contact us through the following ways:
Tel：0755-26880862
Postcode：518052
Letter address：
Room 3101, Block B, Building 9, Zone C, PhaseIII of Vanke Yuncheng, Liuxin 4th Road, Xili Community, Xili Sub-district, Nanshan District, Shenzhen City (Room 3101, Block B,Building 7, International Innovation Valley)
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E-mail：stock@wotlon.com
About this Report
As an annual report, this Report covers the period from January 1, 2024 to December 31, 2024 ("the Reporting Period")and may include some content pertaining to previous years or extend its scope into 2025. Unless otherwise stated, thisReport covers Shenzhen WOTE New Materials Co., Ltd. and our consolidated subsidiaries.
Reporting Scope
Data Sources
WOTE commits that the contents of the Report do not contain any false records, misleading statements, or materialomissions. The Board of Directors of the Company assumes individual and joint responsibility for the truthfulness,accuracy, and completeness of the Report.Reliability Commitment
This Report is available in both printed and electronic formats. The electronic version can be accessed on the CNINFOwebsite (www.cninfo.com.cn).
Report Access
WOTE encourages all stakeholders to provide suggestions or feedback on the Company's sustainable development. Forany related matters, please contact stock@wotlon.com.
Contact Information
Preparation BasisSelf-Discipline Supervision Guidance No. 17 for Listed Companies - Sustainability Report (Trial) by Shenzhen StockExchangeSustainability Reporting Standards by the Global Reporting Initiative (GRI Standards)United Nations Sustainable Development Goals (SDGs)
This is the third Environmental, Social, and Governance (ESG) Report released by Shenzhen WOTE Advanced MaterialsCo., Ltd., holistically presenting the Company's principles, concepts, management approaches, and achievementperformance in sustainable development. This Report is compiled in both Chinese and English. In case of any ambiguityin interpretation between the two texts, the Chinese version shall prevail.
The data used in this Report are derived from the Company's ofcial documents, nancial reports, or relevant publicinformation. In case of minor discrepancies in the data, the annual nancial report shall prevail. Financial data in theReport is presented in CNY.Appellation DescriptionFor ease of reading, throughout the Report, "Shenzhen WOTE Advanced Materials Co., Ltd." is also referred to as "WOTE,""the Company," "our company," or "we". "Zhejiang Conceptfe" refers to "Zhejiang Conceptfe New Material TechnologyCo., Ltd.", "WOTE Huaben" refers to "Shanghai WOTE Huaben Semiconductor Technology Co., Ltd.", "Chongqing WOTE"refers to "Chongqing WOTE Zhicheng Advanced Material Technology Co., Ltd.", "Huizhou WOTE" refers to "Huizhou WOTEAdvanced Materials Co., Ltd.", "WOTE High Performance" refers to "Jiangsu WOTE High Performance Materials Co., Ltd.","Jiangsu WOTE" refers to "Jiangsu WOTE Advanced Materials Technology Co., Ltd.", “Hong Kong WOTE” refers to “HongKong WOTE Co., Limited”, and “Vietnam WOTE” refers to “Vietnam WOTE New Materials Co., Ltd”.
2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT