CORPORATESOCIALRESPONSIBILITYREPORT

Fii 2022

Data drives green development

Advocate ofenvironmental protectionAddressing climate changeManagement of greenhouse gas emissionsEnvironmental ManagementEnergy managementWater resources managementWaste managementWaste Gas ManagementChemical ManagementEcological Protection

Responsible procurementforce practitionerSustainable supply chainDisputed purchases

Sustainable governancepractitionerCorporate governanceEconomic performanceRisk and opportunity managementTax strategyInformation securityBusiness ethics

Social value creator

Responding to national strategiesWorking together with the industryParticipation in community public welfare

People-oriented employer

Labor rightsEmployee diversityHuman rights protectionEmployee training and developmentTalent attraction and retentionOccupational health and safety

Regarding this reportExecutive speechFii 2022Social recognition and honorsAbout FiiSustainable development managementStakeholder communication andanalysis of substantive issues

Independent VerificationStatementPerformance and AppendixKey Quantitative Performance TableDirection chartReader feedback

Pioneersof innovation

Clean technology opportunitiesInnovation managementGreen productsProduct quality and safetyCustomer relationship management

CONTENTS

Foreword

ForewordPioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

Scope of organization: This report covers Fii and its subsidiaries.The financial-related data adopts the scope of the consolidatedfinancial statements of the 2022 annual report. The statistical caliberof environmental, social, and corporate governance issues covers Fii’sheadquarters and those related to communications and 92 subsidiarieswithin the scope of the consolidated financial statements of the 2022annual report of mobile network equipment, cloud computing, industrialInternet smart manufacturing business and industrial Internet business,see Foxconn Industrial Internet Co., Ltd. 2022 Annual Report fordetails.Time frame: January 1, 2022-December 31, 2022. The report involvessome data disclosures from previous years.

This report is the 2022 Corporate Social Responsibility Report (hereinafterreferred to as “this Report”or “CSR Report”)issued by Foxconn IndustrialInternet Co., Ltd. (hereinafter referred to as “Foxconn Industrial Internet”,“the Company”, “this Company”, “Fii” or “we”) and its subsidiaries todescribe Fii’s approach and performance on environmental, social andgovernance in 2022.

This report is the fifth annual corporate social responsibility reportreleased by Fii since its listing on the Shanghai Stock Exchange in 2018.In the future, the company shall continue to publish this report everyyear to implement the company’s sustainable development philosophyand respond to the concerns of stakeholders.

Regarding this report

Reporting cycle: This report is an annual report, and its reporting cycleis consistent with the financial report.Current release version: Issued in XXX 2023Last release version: June 2022Expected next release version: May 2024

Report scope

Data Period

Data source

The information and data disclosed in this report come from officialinternal documents, statistical reports and annual reports of Fii andits subsidiaries. The financial information in the report is in RMB. Thefinancial data is subject to the annual financial report. There was norestatement of information during the reporting period.

This report complies with the requirements of the Global ReportingInitiative Sustainability Reporting Standards (GRI Standards), and refers tothe electronic manufacturing services and original design manufacturingissued by the Sustainability Accounting Standards Board (SASB), andthe Hardware Industry Sustainability Accounting Standards Board(SASB Standards) ), United Nations Sustainable Development Goals (UNSDGs), Task Force on Climate-related Financial Information Disclosure(TCFD) Proposal Report, China Securities Regulatory Commission’sGuidelines for the Content and Format of Information Disclosure byCompanies Offering Securities to the Public No. 2- Content and Formatof Annual Report (2021 Revision) (Chapter Five Environmental andSocial Responsibility), Shanghai Stock Exchange’s (“SSE”) Shanghai StockExchange Self-Regulatory Guidelines No. 1 for Listed Companies -Standardized Operation and World Economic Forum 2020 White Paperand other relevant standards for disclosure.

Preparation basisExternal authentication

In order to fully respond to the demands of various stakeholders andensure that the report is more substantive, Fii hires China TestingCertification Co., Ltd. to conduct an independent, objective and impartialverification work in accordance with the AA1000 Assurance Standard v3(“AA1000AS v3”). The report is attached as an appendix to this report.

Report release

This report is released in electronic form, and the electronic version shallbe browsed or downloaded online at the official website of Fii (http://www.fii-foxconn.com).

Foreword

Pioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

Looking back on the past 2022, it shall be said tobe full of difficulties, but also of great significance.Under the leadership of governments at all levels,Fii have overcome the COVID-19 epidemic that hasbeen raging for three years, and all social activitieshave returned to normal at the fastest speed; the“14th Five-Year Plan” and the Overall Layout Planfor Digital China Construction issued by the StateCouncil in February 2023 also pointed out thedirection and path for the future development of themanufacturing industry.As an A-share listed company, Fii keeps pace withthe times, takes advantage of the country’s vigorouspromotion of the digital economy, and strives hardto keep moving forward. The 2022 annual reportshows that Fii’s annual revenue reached 511.8 billionyuan, a year-on-year increase of 16.4%, continuedto create value for shareholders and society, andimplemented the company’s mission and vision withpractical actions.Adhere to data-driven and deeply cultivate thedigital economy industry. As a leading companyin the digital economy, Fii has been deeply involvedin digital industrialization and industrial digitalizationrelated fields for many years, and its technologiesand products have achieved full coverage of the fivemajor categories of digital economy industries. Inthe future, Fii shall empower thousands of industriesbased on the “lighthouse factory” and help the digitaltransformation and high-quality development of themanufacturing industry.

Realize green development and promotesustainable operation of enterprises. As an

A-share listed company, Fii actively responds to thecountry’s dual-carbon strategy, and has formulateda dual-carbon goal of carbon neutrality in operationsin 2035 and zero emission in the value chain in 2050.While consolidating Fii three distinctive advantagesof “green products, green intelligent manufacturing,and green energy”, Fii will take advantage of theindustrial Internet platform to expand greenexternally, promote the “green supply chain”, andpromote the overall solutions of energy conservationand carbon reduction to upstream and downstreamenterprises, provide carbon-neutral solutions tothe society and promote the green, sustainable andhigh-quality development of the entire industrialchain.Advocate people-oriented, pay attention topersonnel training system. The sea is inclusive ofall rivers, and it is strong to gather talents. Fii shallcontinue to stimulate the vitality of the organization.By holding various skills competitions and high-quality training, Fii shall call on employees to learnfor life, help employees improve the work skills,and cultivate “craftsmen of a great country” so thatold employees shall rejuvenate and realize his/hervalue. At the same time, Fii also welcome all kinds ofexcellent talents join us, open up space and createopportunities for new employees.Engage in public welfare undertakings andpractice corporate social responsibility. As animportant part of society, an enterprise is also one

of the “national citizens”. While pursuing economicinterests, it is natural to assume corresponding socialresponsibilities. Over the years, Fii has continuedto make efforts in technological innovation tohelp the development of small and medium-sizedenterprises, and has continuously radiated influenceand demonstration effects to all walks of life; at thesame time, Fii has been silently contributing effortsin participating in community public welfare, caringfor disadvantaged groups, advocating environmentalprotection, and assisting in rural revitalization.2023 is a critical year for the “14th Five-Year Plan”to inherit the past and usher in the future. Variousnational policies have once again emphasizedthe importance of digital economy, high-qualitymanufacturing and sustainable development.Fii shall continue to take “serve global intelligentmanufacturing and benefiting the world’s industry”as its own responsibility, adhere to the strategyof “data-driven, green development”, deepen themanagement system and implementation path ofthe company’s sustainable development, establisha good social image, and strive to become theindustry benchmark. Looking forward to the future,new journeys and new opportunities bring newchallenges. Fii shall work together with everyone tocreate a new future for the digital economy.

Chairman’s speech

Data-driven and green development, promoting sustainable business operation of enterprises

Li Junqi, Chairman of Fii

Foreword

Pioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

2023 is a milestone year for Fii.Fii was listed on the A-share market in 2018, andthis year marks the fifth anniversary of the listing.Looking back on the past five years, in the face of thecomplex and ever-changing international situationand market environment, Fii has accurately graspedthe development trend of the industry, based on thethree core businesses of “device, network and cloud”and combined with the high-quality development of“Industrial Internet”, product technology continuedto innovate, and the company’s performance grewsteadily. In 2022, the revenue exceeded 500 billionfor the first time, reaching a new level. As a leadingcompany in intelligent manufacturing and digitaleconomy, Fii knows that the road of sustainabledevelopment shall not only inject vigorous vitalityand competitiveness into the enterprise, butalso promote the surging power of high-qualitydevelopment of the enterprise. As early as the initialstage of listing, Fii set up the CSR committee to leadthe sustainable development of the enterprise. Fiinot only adhere to EPS, which strives for shareholderrights, but also adhere to the “EPS+ESG” sustainablemanagement formula. ESG is not only a choice for Fiito take advantage of the situation, but also an activeexploration to create the future.2023 is also the fifth year that Fii has released socialresponsibility reports in a row. In the past 5 years,Fii has continuously made new achievements intechnological innovation, environmental protection,corporate governance, production safety, employeecare, community building, etc., and helped the

coordinated development of economy, society andenvironment; in the past 5 years, Fii has improvedthe ESG management system , improve the level ofESG governance, and promote the comprehensiveintegration of ESG concepts into the company’sdevelopment strategy and business decisions. Inmainstream ESG ratings such as MSCI and HongKong Hang Seng, the results have jumped yearafter year; this year, Fii clearly puts forward theESG vision of “greener, more harmonious, andmore standardized”, declares 12 goals under the6 major ESG decisions, and guides the directionof the company’s high-quality and sustainabledevelopment.It is greener at the environment (E) level.Fii firmly follows the path of green development,and regard green products, green intelligentmanufacturing, green energy, and green supplychain as four important components of greendevelopment. Fii sets an example by creating anefficient and energy-saving industrial operationmodel, committed to reducing the impact ofthe manufacturing process on the environmentand resource consumption, and have cultivatedmore than 10 green factories; in 2022, Fii shallcomprehensively promote energy-saving projects,with a total investment of 170 million yuan. Theimplementation of 802 environmental protectionand energy-saving and emission-reduction projectsreduced carbon emissions by 153,000 tons annually,a year-on-year increase of 300%. At the sametime, Fii actively explores circular economy andtechnological innovation in double-carbon related

fields, and designed green products; empoweredupstream and downstream enterprises through theindustrial Internet platform, establish a green supplychain, and work with stakeholders to help reduceglobal carbon emissions and achieve sustainableand win-win development.It is more harmonious at the social (S) level.Fii insists on people-oriented, and advocate thesharing of happiness. Respect every employee,commit to creating an equal and diverse workingenvironment for employees, provide a sound andsmooth development path, build an all-roundgrowth platform, ensure employees have fairand predictable career prospects, and enhanceemployees’ sense of happiness and belonging. Fii hasenthusiastic about public welfare and contribute tovarious fields such as helping the needy, advocatingenvironmental protection awareness, and ruralrevitalization. In 2022, a total of 786 voluntary serviceactivities shall be carried out, with a total of 34,338participants and 153,383 service hours.It is more standardized at the level of corporategovernance (G). Fii firmly believes that integrityand compliance are the cornerstone of fulfillingcorporate responsibilities, and Fii shall continue toimprove the risk management system and steadilyimprove corporate governance capabilities; Fiiattaches great importance to security, includingproduct security, data security, and network security.and information privacy, etc., establish and improvea sustainable and reliable security system from theaspects of organization, process, management,

technology and norms; Fii incorporates ESGconcepts into the assessment of suppliers, and100% of key suppliers sign the Supplier Social andEnvironmental Responsibility (SER) Code of Conduct,and build a responsible supply chain system andsustainable partnership with suppliers.Climb to the high, live to the new, and go far. On theroad of practicing sustainable development, everyday is a new starting point, and every year is a newjourney. Looking forward to the future, Fii shall insiston building a path of high-quality development withcorporate responsibility, pave the way of sustainabledevelopment with technological innovation, and joinhands with all partners to move towards a greener,more harmonious, and more standardized future.

Zheng HongmengGeneral Manager &Chairman of the CSR Committee of Fii

Speech by CEO & Chairman of CSR CommitteeGreener, more harmonious, more standardized

Foreword

Pioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

In 2022, Fii shall continue to deepen the developmentof the digital economy industry, taking the digitaleconomy field as the core direction of R&D andinnovation. The company has achieved full coverageof the five major categories of the digital economyindustry. At the same time, the company has alsorealized the diversification of business layout in thefields of new energy vehicle parts, semiconductorecology, big data, robotics, etc., realized the furtherexploration of the potential of the digital economy,and established the direction for creating the secondgrowth pole.At the same time, Fii is also continuing to rely on its ownmassive production data and leading industrial internettechnology to actively carry out the deep integrationof the digital economy and the real economy. Throughcross-industry and cross-field strategic cooperation,Fii shall integrate the industrial Internet ecosystemintroduced into different industries and fields, more

than 50 important customers have implementedindustrial internet services. So far, Fii has supportedthe creation of more than 10 “smart factories”internally; it has empowered and built 6 world-class“Lighthouse Factories” in total, including assisting CITICDicastal to successfully build a world-class “LighthouseFactories” by the end of 2022. Fii Shenzhen Guanlanfactory is successfully selected as the world’s firstprecision metal processing “Lighthouse Factories”; Fiicontinued to exert its leading effect to radiate a largenumber of small and medium-sized enterprises, andserved more than 1,500 enterprises in ten industrieswith the “Lighthouse Pilot Plan”. By continuouslyempowering the typical application scenarios of thedigital transformation of the manufacturing industry,improving the construction of digital infrastructure,and deepening the innovation of application services,it helps industrial enterprises to steadily increase theefficiency and income.

Against the background of global carbon reduction,green development has become an important mainline of Fii’s development in the next few years, and itshall continue to accelerate in the field of sustainabledevelopment. In 2021, the proportion of green revenuehas exceeded 40%, and the cumulative number ofpatents related to clean technology has exceeded800; in 2022, the dual-carbon goal shall be officiallyproposed, and the accumulated digital technology shallcontinue to be used to build green factories, and thecarbon emissions of suppliers shall be included in thecompany among the overall emission reduction goals.Fii shall continue to export advanced energy-savingtechnologies and digital transformation solutions, andplan to build 16 national/provincial green factories by2025.

Fii 2022

1,500+

世界级“灯塔工厂”

“智慧工厂”

服务企业

座

座

家

Foreword

Pioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

Key performance in 2022

Annual revenue

(million yuan)

5,118.50

4,395.57

2020

4,317.86

20212022

Net profit attributable to parentcompany

(million yuan)

202020212022

200.73

200.10

174.27

R&D investment(million yuan)

108.35

2020

100.38

20212022

115.88

Annual revenue of clean technology-related businesses(million yuan)

2,143.56

1,776.94

2020

1,753.06

20212022

Cumulative number of patentsrelated to clean technology(pieces)

202020212022

1,147

Number of newly added patents inclean technology

(pieces)

2020

20212022

31,60324,298

25,916Number of R&D personnel

202020212022

Social contribution value per share(yuan)

2.23

2020

2.46

2021

2.48

2022

Green factory(Block)

2020

2021

2022

Investment in environmentalprotection (million yuan)

3.91

2020

4.42

2021

3.95

2022

Total investment in environment,safety and health (million yuan)

3.91

2020

4.42

2021

3.75

2022

6,078

5,504

Number of valid applications andauthorized patents

2020

20212022

UL2799 Gold Level Certification forZero Waste to Landfill(Block)

2020

2021

2022

Environmental pollution accident

2020

2021

2022

Signature rate of code of conduct forkey suppliers/Collective contractcoverage (%)202020212022

Parental leave return rate (%)

99.34

%2020

99.39

%2021

99.42

%

2022

%

%

%

1.【统计口径】2020年科技创新有效申请和授权的专利统计口径与2021、2022年不同，重新追溯数据较为困难，因此不进行披露。

2.In 2022, the scope of annual revenue statistics of clean technology-related businesses shall be expanded to include cloud computing and industrial intelligence, as well as the **5 certi?cations, Nanning Park has obtained platinum certi?cation

Foreword

Pioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

Facing future trends, Fii has proposed

a new business strategy of “2+2”.

Fii 2022 milestones

Proposed the “data-driven, green development” strategy, and the annual multi-stage operatingincome and net profit attributable to the parent company both reached record highs.

Exclusive strategic investment in the unicorn company Siling Robot, to accelerate the creationof the second growth curve of semiconductor ecology, new energy vehicle parts, big data,automation and robotics.

It has been selected as the “Cross-industry and Cross-domain Industrial Internet Platform” by theMinistry of Industry and Information Technology for four consecutive years, and is awarded the “2022Excellent Intelligent Manufacturing Scenario” by the Ministry of Industry and Information Technology.

Published the first white paper on carbon neutrality, set up its own carbon reduction goals,promoted carbon neutrality in the supply chain, and is rated as “China’s Industrial Carbon PeakLeader Enterprise”.

The largest scale of school recruitment is launched, and 2,300 job requirements are released,with R&D technology jobs accounting for 40%.

It makes its debut at the China Electronic Information Expo, exhibiting products and technicalapplication solutions in the fields of 5G+, cloud computing, and industrial Internet, and win thegold medal of the conference.

Shenzhen Guanlan Factory was selected as the world’s first precision metal processing“Lighthouse Factory”, accumulatively enabling the creation of 6 world-class lighthouse factories.

将“高端智能制造+工业互联网”的核心竞争力向半导体、新能源车领域延伸

为“大数据+机器人”，深入布局元宇宙算力及新能源储能，发展工业机器人、装备及自动化领域。

++++++++++

Foreword

Pioneers of innovation

Advocate of environmentalprotection

Responsible procurement

force practitioner

Sustainable governancepractitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

As a global leader in digital economy and smartmanufacturing, Fii also attaches great importanceto ESG management while developing rapidly andhealthily.Since its listing in 2018, Fii has released CSR reportsfor four consecutive years, and released the FiiCarbon Neutrality White Paper for the first time inMay 2022, clearly proposing the company’s carbonneutrality action goals and specific plans, and

formulating 3R policy (Reduce, Replace, Resolve), inaccordance with the strategy of “energy conservationand emission reduction and renewable energysupply priority, carbon offset as supplementary”,while gradually realizing carbon neutrality in itsown operations and the entire value chain, throughtechnological innovation for the society providecarbon-neutral solutions that shall be replicated andpromoted.

In addition, the company has also made manyprogresses in the field of sustainable developmentin 2022: it officially joins the China ESG LeadersOrganization and became a leading ESG companyin the industry; it is selected into the ExcellentESG Practice Cases of Listed Companies for twoconsecutive years; Nanning Park obtained UL2799waste Zero landfill platinum level certification,becoming the first company in Guangxi to obtainzero waste landfill certification; selected in the

Excellent ESG Practice Cases of Listed Companiesfor two consecutive years; Received multiple honorssuch as the “Leading Enterprise in China’s Industrial‘Carbon Peak’”, the “Outstanding ResponsibleEnterprise of 2021” Award, the “Best ListedCompany” and “Best ESG Practice Award” of NewWealth, and the “ESG Pioneer Award” of Cailian NewsAgency.

Social recognition and honors

Member of China ESG Leaders Organization

China ESG Leaders Organization

2021 Outstanding Responsibility Enterprise

South Weekend

2022 Best Practice Award for Directors’Office of Listed Companies

China Association for Public Companies

“Action for Sustainable IndustrialDevelopment in China” -- the 2022 IndustryCaseAPEC China Business Council

2022 CLS Zhiyuan Award · ESG Pioneer AwardCLS

Outstanding Model Award for ESG Practiceof Chinese Listed CompaniesJRJ

Best ESG Practice Award

New Wealth, Guanghua Rothman Information andCapital Market Research Center

Foreword

Pioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

China’s industrial “Peak Carbon DioxideEmissions” Leading Enterprises

CFIE

Annual ESG Excellent Practice EnterpriseInvestor Network

2022 China Top 500 corporate PhilanthropyOrganizational Committee of China EnterpriseCharitable Forum

2022 China Top 500 Corporate PhilanthropyOutstanding CasesOrganizational Committee of China EnterpriseCharitable Forum

Greater China Human ResourceManagement Excellence AwardHRoot Awards

Top 50 Best Employers in Shenzhen 2022Zhaopin Limited

Excellent ESG Practice Cases of ListedCompanies

China Association for Public Companies

Foreword

Pioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

Foxconn Industrial Internet Co., Ltd. (stock abbreviation: Fii, stock code: 601138) was listed on the A-share marketin 2018. As a global leader in the digital economy industry, Fii is guided by the strategy of “data-driven, greendevelopment”, realize the full coverage of the five major categories of digital economy industries including cloud andedge computing, industrial Internet, smart home, 5G and network communication equipment, smart phones andsmart wearable devices.

About FiiCompany profile

Company Name

Foxconn Industrial Internet Co., Ltd.

English name

Foxconn Industrial Internet Co., Ltd.

Stock code

601138

Nature and legal form of ownershipCo., Ltd. (Sino-foreign joint venture,listed)

Registered capital

19.872 billion yuan

Total assets2,841.88 billion yuan

Nature and legal form of ownership Headquarters addressCo., Ltd. (Sino-foreign joint venture, listed) 2nd Floor, Building C1, Foxconn Science andTechnology Park, No. 2, Donghuan 2nd Road, Longhua Street, Longhua District, Shenzhen

Business income

5,118.50 billion yuan

Total number of employees199,073

Foreword

Pioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

As the world’s leading high-end intelligent manufacturing and industrial Internet solution service provider, thecompany’s main business includes cloud computing, communication and mobile network equipment, and industrialInternet. Under the booming trend of the digital economy, Fii shall maintain its strategic focus and actively seizedevelopment opportunities.

On the basis of the steady development of its core business, Fii has accelerated the promotion of “high-end intelligentmanufacturing + industrial Internet” capabilities to extend to semiconductor ecology, new energy vehicle parts andother fields, and at the same time deeply deploy metaverse computing power and new energy storage to developIndustrial robots, equipment and automation fields.Cloud computing

Revenue situation

Revenue is 212.444 billion yuan, a year-on-year increase of 19.56%,maintaining a growth trend for five consecutive years.

Current situation insights

Cloud computing server shipments continue to rank first in theworld; the highly efficient AI server iterated to the fourth generationleads the world in the HGX series

Development trend

At present, the global server market is accelerating expansion, andthe sales volume of the company’s cloud computing, enterpriseservers, storage and other products is firmly in the leading positionin the world. The company’s cloud service provider productsaccount for a rapid increase in cloud computing revenue, exceeding40% in 2022. In addition, in terms of new markets, Cloud Gamingcabinet system products have also begun to ship.Future industrial layoutIn 2023, new products related to high-efficiency AI servers in the eraof computing power will be successively developed and launched.Continuously improve the global layout, and fully meet the needsof the world’s top customers in terms of cutting-edge technologycooperation and factory layout.

Communication and mobile network equipment

Revenue situation

Revenue is 296.178 billion yuan, a year-on-year increase of 14.37%,a continuous double-digit growth.Current situation insights

Empower global enterprise digitalization, 5G infrastructure, smarthome and other fields, and focus on investing in next-generationnew technologies.Development trend

With the increasing demand for global enterprise digitization, 5Ginfrastructure, and smart homes, the incremental demand forthe Industrial Internet, Metaverse, and AIGC is increasing, andthe upper-layer traffic continues to increase, and the demand fornetwork expansion is emerging. The demand for enterprise digitaltransformation and cloud infrastructure construction serviceshas expanded, and network equipment has grown steadily. Thecompany’s layout includes enterprise network equipment, wirelessnetwork equipment and 5G-related products, smart home productsand industrial-related products. During the reporting period, 5Gequipment revenue, network Equipment revenue grew by morethan 20%.

Future industrial layout

Continue to expand customer product lines, consolidate andexpand the high-end smartphone market, develop molds,automation, and robot markets, and explore new fields such aselectric vehicles, new materials, semiconductors, and medicalequipment and device.

Industrial Internet

Revenue situation

The revenue scale reached 1.912 billion yuan, a year-on-yearincrease of 13.46%.

Current situation insights

Since its listing four years ago, Fii has participated in the creationof six “Lighthouse Factories”. The digital and intelligent solutionsbased on the “Lighthouse Factories” have become one of Fii’s corecompetitiveness in the field of digital-real integration.Up to now, the “Lighthouse Pioneer Program” has served more than1,500 companies, covering 10 major industries, and successfullyserved more than 50 leading companies.Development trend

The three core segments of the company’s industrial Internetplatform (Lighthouse Factory/Standard Software/Fii Cloud) businesshave achieved rapid growth: excellent manufacturing consulting andlighthouse factory solution business, revenue increased by 113%,and customers increased by 60%; one-stop digital manufacturingoperations business revenue increased by 283%, customersincreased by 63%; cloud platform service business revenueincreased by 140%, and resource scale increased by 53%.Future industrial layout

Continue to promote the “Lighthouse Pioneer Program” to helpthe industrial Internet business go deep and solid, and help thedevelopment of the digital economy.

Foreword

Pioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

ChinaVietnam

UnitedStatesMexico

CzechRepublic

Hungary

Fii has a presence in 12 countries and regions in Asia, Europe, and North America. Relying on years of experience in lean management, supply chain management, and flexible production, it has achieved a dual cycle of domestic and foreignproduction. Deeply cultivating in China and deploying globally, Fii adheres to the business model of “deeply cultivating in China”, integrates the advantages of global resources, promotes the digital transformation of the ICT industry chain, and helpsthe high-quality development of the global digital economy.

Business area

Foreword

Pioneers of innovation

Advocate of environmental

protection

Responsible procurementforce practitioner

Sustainable governancepractitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

In 2018, Fii established the Corporate Social Responsibility Committee, aiming to raise sustainable development to thehighest management level of the company. After four years of operation, we have dynamically paid attention to theinternal organization and operation of the company, and evaluated the dynamics of the external capital market on ESGissues, and continued to promote the update of the ESG management structure until 2022.

The committee will be renamed the “Sustainable Development Committee” (hereinafter referred to as the “Committee”)in 2021 to demonstrate Fii’s determination to incorporate corporate social responsibility (CSR) into broaderenvironmental, social, and corporate governance (ESG) management. Firmly verify the belief in CSR operation anddevelopment with ESG sustainable development performance. In 2022, the Sustainable Development Committeewill add an ESG policy promotion team, which will be responsible for improving corporate ESG performance and ESGrating performance.

Sustainable development management

策略

规划

运行

董事会

董事长，副董事长，董事，独董

Fii永续发展委员会

永续发展委员会分会

董事会办公室

董秘

环保与节能减碳（E）人力资源与用工环境（S）公司治理（G）

ESG策进组

Fii永续发展委员会秘书处

Foreword

Pioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

Architecture StrategyPlanningRun

Function Board of directors

Chairman, Commission onSustainable Development

Secretariat of the Commission on

Sustainable Development

ESG group

Council on Sustainable

Development BranchAppointment of the Chairman of theSustainability Committee.Supervise the Corporate SocialResponsibility Code of Conduct (CSRCoC), sustainable development strategy,policy guidelines, objectives, regulations/systems, annual plans, performanceindicators, audit management methodsand committee operation managementmethods.Guide the major trends of sustainabledevelopment, and incorporate theoperating principles into the sustainabledevelopment strategy.Supervise sustainable developmentmanagement performance combined withannual assessment of senior management.Strengthen the organizational structureand functions of the board of directors,and adhere to the principles of businessethics, integrity, and compliance.Review and approve the publication of thecommittee’s report.

Form a sustainable developmentcommittee.Supervise the Corporate SocialResponsibility Code of Conduct (CSRCoC), sustainable development strategies,policy guidelines, objectives, regulations/systems, annual plans, performanceindicators, audit management methodsand committee operation managementmethods.Make decisions on CSR/ESG major eventemergency plans and special issues.Coordinate the resource integration of theSustainable Development Committee andoperation management.Appoint the responsible unit of thecommittee to promote the resolutions ofthe board of directors.Report to the board of directors on theeffectiveness of sustainable developmentimplementation.

Integrate the resources of the SustainableDevelopment Committee.Agree on corporate social responsibilitycode of conduct (CSR CoC), sustainabledevelopment strategy, policy guidelines,goals, regulations/systems, annualplans, performance indicators, auditmanagement methods and committeeoperation management methods.Identify stakeholders’ concerns andmateriality assessment.Planning, monitoring, and checking thesustainable development performanceindicators of all relevant parties in theSustainable Development Committee.Carry out special activities/training/coaching for sustainable development.Regularly report operations to theChairman of the Sustainable DevelopmentCommittee.Exercising auditing rights, monitoringrights, notification rights, investigationrights and suspension rights.Coordinating the external participation ofthe planning committee and sustainablebrand maintenance.Negotiate and improve the ESG ratingof the capital market and the specialpromotion and proposal of sustainabledevelopment issues.Integrate the responsible units of thecommittee and jointly prepare and publishreports.

Integrate the central functionaldepartments and committee sub-committees to form an ESG policypromotion group “cooperativeorganization”.Comply with the Corporate SocialResponsibility Code of Conduct (CSRCoC), sustainable development strategy,policy guidelines, goals, regulations/systems, annual plans, performanceindicators, audit management methodsand committee operation managementmethods.Identify key ESG issues and analyzeweaknesses to form improvementprojects.Formulate ESG goals, short-, medium-, andlong-term achievement paths and closed-loop management.Carry out proposals for ESG issues andweaknesses, improve and supervisemanagement, and expand externalparticipation.Maintain the best practices of capitalmarket ESG rating issues and responsibilityfunctions (ESG) projects.

Establish and set up the sustainabledevelopment committee sub-committeededicated unit management organizationand dedicated personnel.Comply with the Corporate SocialResponsibility Code of Conduct (CSR CoC),sustainable development strategy, policyguidelines, goals, regulations/systems,annual plans, performance indicators, auditmanagement methods and committeeoperation management methods.Actions to identify and ensure performanceof duties.Responsible for customer CSR/ESG audit,communication and service.Regularly report the progress of CSR/ESGto the executive secretariat.Practice ESG strategies, issues, and goalplanning.Proactively report CSR/ESG violations andpenalties and negative public opinion tothe Secretariat.Perform sustainable developmentperformance audit and closed-loopmanagement.Improve sustainable development and CSR/ESG best practices.Participate in the practice of stakeholdersconcerned about issues.

Foreword

Pioneers of innovation

Advocate of environmentalprotection

Responsible procurementforce practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

The Sustainable Development Committee is established based on the scope of operation, the size ofthe legal entity, and the number of employees. The top management of the Fii Business Group servesas the main planning and organizing personnel. A Sustainable Development Committee branch isestablished and included in the overall management of the Fii Sustainable Development Committee.Each branch independently manages the CSR/ESG of the branch and establishes functional units.The six major functional units deepen the operation of ESG as the main body, and at the same time,through cross departmental integration of relevant issues, form a bottom-up collaborative linkage ofESG practice. Build a bridge to achieve the development and management vision of Fii by combiningthe four major improvement pathways.

Sustainable Development Committeebranch organization introduction

In order to promote the long-term planning of the company’s sustainable development and implement thegovernance efficiency of the company’s sustainable development, Fii has revised the Sustainable DevelopmentCommittee Organization and Operation Management Measures. In addition to clarifying the responsibilities ofeach member in the committee structure, the Measures also define three types of committee meetings to ensurethe practical advancement of Fii’s sustainable development work and positive responses to related matters.

四大提升通路

Lift coverage ratio

Management system &External certification

Meeting typeFrequencyMeeting content and explanation

Annualcommittee

meeting

Once per year

1.The executive secretariat and sub-committees provide executive instructions

on the minutes of the previous meeting, CSR/ESG project reports, and temporarymotions.

2.Review and adjust the achievement status of vision/commitment/policy/issue/

goal and other elements of environmental protection, society and corporategovernance.

3.Audit feedback, review of implementation status of corrective measures and

preventive measures, project start-up report.

4.Annual sustainability performance indicators and OKR implementation status/

review and improvement of major CSR/ESG events/annual CSR project reviewsummary/annual CSR goal planning.

5.The demand status of the meeting Please invite relevant department personnel

of the company, third-party institutions, scholars/experts, stakeholders or otherpersonnel to attend the meeting and provide relevant necessary information.

Committee

BranchFunctional Unit

Meeting

At least onceper year

1.Executive notes on the minutes of the previous meeting, CSR/ESG project

reports, and temporary motions.

2.Gather relevant information of financial semi-annual report/annual report and

sustainability report.

3.Annual sustainability performance indicators implementation instructions/

review and improvement of major CSR/ESG events/annual outstanding CSR/ESGproject sharing/annual CSR/ESG goal planning.

4.Audit feedback, review of implementation status of corrective measures and

preventive measures, project initiation report.

5.Matters related to the sub-committee meetings of the preceding paragraph

shall be recorded and submitted to the executive secretariat of the committee forinspection.Temporarymeetings

Subject tomajor eventsand temporarymotions

The meeting should form a summary and submit a contact list, whichwill be submitted to the chairman of the committee for review, and theexecutive secretariat of the committee will continue to follow up untilthe case is closed.Superior tolegal standards

Leading practice&Proactive actionOutperform peers

Performance improvement& Continuous improvement

Maintain corporatereputationRisk prevention & Internal andexternal communication

Foreword

Pioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

The Corporate Social Responsibility Code of Conductis an important specification revised by Fii in 2022. Itwill become the basic principle and standard for usto deal with all stakeholders, so as to ensure that thecompany’s business activities comply with relevantethical, legal and professional standards. Maintaincompany assets, rights and interests and brandreputation.This guideline has been signed and approved by theChairman of the Fii, the Chairman of the SustainableDevelopment Committee, and the top executives ofeach branch. It proposes policies and statementsregarding the Fii in eight major areas: ethicalstandards, labor and human rights, health andsafety, environment, management system (elementsrequired to implement this guideline in line withthe management system), responsible mineralprocurement, anti-corruption policies, and anti slavepopulation policies.

可持续发展

价值创造决策层

·SDGs ·碳中和 ·外部倡议/合作

响应层

·ESG评级 ·ESG联动绩效 ·CSR管理体系

基础层

·ESG KPI ·ESG稽核 ·ESG风控 ·ESG争议事件

Review of ESG events in recent years2022MSCI ESG rating upgraded to BBB

2021

2020

2019

2018

Fii implements this code of conduct with the higheststandards in order to continuously improve the trustof stakeholders and social image, and become astrong competitor in the industry and CSR field.The Sustainable Development Goals blueprintreflects Fii’s ambitious ESG work. Based on thecorresponding internal and external needs at alllevels, the committee divides normal, short-to-medium-term, and long-term strategic deployments,dismantles the ESG goals for 2023, 2025, and 2030and advances them according to the division oflabor. Consolidate the ESG management foundationof conventional risk management and control,participate in rating and performance linkage todredge the ESG management system, and finallyrespond to SDGs, carbon neutrality and externalinitiatives to create a sustainable brand. Fii cherishesthe value creation of sustainable development ofenterprises, and strives to be down-to-earth in everystep of the ESG journey, to make steady and long-term progress, and to be promising.

OCTSEPJULAUG

MAYJUNDECJULMAYJUNSEPAUGJUNSEPJUNJANSEPJUN

Sustainability Committee changed its organization and addedESG steering groupFii CoC audits launchedParticipated in the first year of CDP (B grade) and S&P CSArating (41 points/top 8% of the industry for the time being)Released the 4th CSR report and included overseas informationdisclosure for the first timeReleased Carbon Neutral White Paper Announcing CorporateCommitment to Carbon NeutralityMSCI ESG rating upgraded to BB for the second time in a yearSustainalytics risk rating reduced from 25.4 to 22.8FTSE ESG rating upgraded to 3.8 points (better than 84% of peers)Issued 3rd CSR report with first AA1000 accreditationMaintained the Hang Seng Sustainability Index SeriesReleased the first edition of Fii CSR Code of Conduct (CoC)Released the second CSR report to expand the scale ofstakeholder researchSelected for Hang Seng Sustainability Index SeriesReleased the first CSR reportEstablished Fii CSR CommitteeMSCI ESG rating of CCCOfficially listed on Shanghai Stock Exchange

Foreword

Pioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governancepractitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

Integrity and complianceOptimize corporate governance structure Create a fair andclean environment

Implement the supervision of business ethics issues at the board level,rotate the audit of the ethical standards of production legal personsevery 3 years, and the completion rate of reporting is 100%Increase the proportion of independent directors to more than 50% (tobe determined)Establish and implement the general manager’s salary recoverysystem, and fulfill tThe company’s integrity management commitment(to be determined)

Establish a leading data protection standard, privacy governanceand network security structure, promote ISO27001 certification andestablish an overall information security management systemConstruct a sound company-level risk management and operationmechanism, promote ISO31000 and ISO37301 certification andestablish an overall risk control compliance systemPromote energy conservation and emission reduction in the supplychain, coach 20 suppliers to achieve the goal of reducing electricityconsumption by 0.5%, and 40 suppliers to achieve the goal of reducingwaste by 10%Continue to increase the proportion of local procurement of indirectraw materials and equipment to the target of 68%

Secure and trustworthy

Deepen comprehensive risk management and build aresponsible supply chain together

Circular economyReducing pollution and carbon synergies to create a greenlighthouse factory

Achieving 80% carbon reduction in operations and 80% use ofrenewable energy by 2030, and achieving carbon neutrality inoperations by 2035 (with 2020 as the base year)The overall promotion of national/provincial and municipal greenfactory certifications will reach 16, and will reach 18 by 2030, covering100% of key carbon emission unitsPromote 15 corporate-level energy management system certifications,reaching 18 by 2030, covering 100% of key energy-consuming unitsContinue to maintain “0” environmental violation incidents, and theonline monitoring rate of pollutant discharge in all institutions reaches100%Obtain at least 14 legal entities with zero waste landfill goldcertification, and reach 18 by 2030Achieving a 6% reduction in the water density of the entire factory areacompared to 2021, and continuing to promote the sustainable watermanagement (AWS) certification of subordinate parks

Achieve net-zero emissions across the entire value chain by 2050Achieve more than 50% of green revenue (clean technology products/services)Formulate a biodiversity policy and implement a sustainable sitemaintenance plan, and carry out site soil/groundwater inventorymonitoring for more than 5 times

Digital intelligence empowerment

Deepening clean technology products to promote zero carbonthroughout the value chain

People-oriented

Protecting employee health and safety Promoting diversifiedgrowth of talentsRealize 100% coverage of the global operating bases of theoccupational health management system and obtain third-partycertification, and promote the occupational health managementsystem certification of high-risk service providers to reach 70%Continue to maintain zero occupational disease incidents caused bychemical exposure, actively plan the chemical phase-out plan anddisclose the implementation of the plan year by yearMaintain the major and above safety accidents as 0, reduce thedisability injury severity rate SR to ≤6.88 days/million working hours,and reduce the disability injury frequency FR to 0.14 times/millionworking hours

Provide diversified vocational skills conversion and promotionmanagement training to assist in the improvement of employabilityand growth. The annual professional course training hours for allemployees have been increased to 60 hours, and the internal jobvacancy adaptation rate has reached more than 35%.Promote the annual public welfare donation amount to RMB 50million, and organize all employees to participate in community publicwelfare services. The annual volunteer service hours of the globalfactory area reached 200,000 hours

Sharing happiness

Helping the disadvantaged and the needy with love to help thepublic welfare of everyone to participate

In 2022, Fii announced 12 action paths under 6 ESG strategies to promote a “greener, more harmonious and more regulated” ESG vision.

EnvironmentSocietyGovernance

GreenerMore harmoniousMore regulated

Foreword

Pioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

The committee formulated a special ESG agenda for 2023-2024, combined with the ESG blueprint and goals, and focused on the four directions of SDGs practice, ESG management ecology, stakeholder participation, and risk controlmanagement. Seek progress while maintaining stability and establish a long-term foundation.

Initiatives UN SustainableDevelopment Goals

Improve ESG management

ecosystem

Enhancing stakeholderengagement

Refine ESGrisk management system

Establish SDGs 2030 response goalsPublished SDGs strategy white paper

Release SDGs impact report

Establish social responsibilitymanagement systemPerform CSR management

maturity assessmentBuild a CSR-ESG management platformPromote SDG/CSR/ESG visualization

Strengthen the transparency of

information disclosureImprove internal management

& negotiate ESG ratingsExpand training/research covering overseasInitiation of climate-related financial

disclosures (TCFD)

Promote CoC audit integration planEstablish ESG audit and evaluation system

Establish a business continuity

(BCM) systemPromote the establishment of ESG systems

in business units

Foreword

Pioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

According to the Global Risks Report 2023 by theWorld Economic Forum, the long-term risks facingthe world in the next ten years cover economic,environmental, social, geopolitical and technologicalaspects. action. In September 2015, worldleaders adopted the 2030 Agenda for SustainableDevelopment at the United Nations Summit andformulated 17 Sustainable Development Goals(SDGs).Compared with the United Nations MillenniumDevelopment Goals (MDGs), SDGs cover variousaspects such as economic growth, social inclusion,and environmental protection. At the same time, itapplies to all countries, and calls on governments,the private sector, social groups, and people aroundthe world to unite and take active actions.For a long time, Fii has contributed to the realizationof SDGs goals through daily operation management

and public welfare activities (see the table belowfor details). In 2022, Fii will take a step forward andregard SDGs as an important direction for futuresustainable development and ESG development. Fiiincorporates SDGs into its corporate developmentstrategy, focuses on the development needs ofmajor global operating bases, and combines its owncore capabilities to identify the priorities of SDGs,uses corporate power to solve social problems,and joins hands with all parties to create social andcommercial value.As a specific action to implement the SDGsresponse, Fii will release a white paper in 2023,fully announcing the SDGs response strategy, goalsetting and action plan. Now there are only lessthan 8 years left before 2030. We will timely reviewand dynamically adjust the response strategy, andregularly disclose the progress and influence, andactively help to fully realize the SDGs.

2022 Fii United NationsSustainable Development Goals (SDGs) Practice

End poverty in all its formsworldwide

Support poor families and help the elderly in rural areasEmployee care and assistancePublic welfare donations for people with disabilitiesClothes donation in suffering areasEnd hunger, achieve foodsecurity, improve nutritionand promote sustainableagriculture

Donation of food and oil supplies for families in need

Ensuring healthy lifestylesand promoting well-being forpeople of all ages

Employees donate blood without compensationTraining for first respondersMedical assistance and relief for employees andimmediate family members“Voice of Employees” communication channelChemical warehouse standardizationPromote the introduction of low VOCs chemicalsHazardous substance management systemEnsure inclusive and equitablequality education and promotelifelong learning opportunitiesfor all

Rural student aid, condolences to local schoolsStaff educationNew Apprenticeship System for EnterprisesOccupational skill level certificationOrganize kindergartenAchieve gender equality andempower all women and girls

Volunteer service activities for left-behind childrenTrade Union Women Workers Committee

The availability and sustainablemanagement of water andsanitation for all

Declare “water-saving enterprise”Reconstruction of concentrated water reuse in purewater roomWhole process control of sewageOcean and river cleaning volunteer service

Special Feature

Foreword

Pioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

Ensuring access to affordable,reliable and sustainable modernenergy for all

Carbon-neutral photovoltaic demonstration projectPhotovoltaic application and constructionGreen power procurementEnergy management systemEnergy-saving technical transformation

Promote sustained, inclusive andsustainable economic growth, fulland productive employment anddecent work for all

Technology, safety and management theme trainingCreate a healthy enterprise in the parkEmployment Base for Disabled Workers, SunshineFactoryEmployment practice base for traineesLighthouse Study Tour Project“Enterprise-school double-teacher joint training” skilltalent projectSupplier SER surveyBuild resilient infrastructure,promote inclusive and sustainableindustrialization, and driveinnovation

Industrial security intelligent managementGreen Manufacturing System CertificationClean technology research and developmentDigital transformation solutions for SMEsIndustrial Internet Park Construction

Reduce inequality within andbetween countries

Employment Base for Disabled Workers, YangguanFactoryRural revitalization “helping students and helping theelderly” activities

Building inclusive, safe, resilientand sustainable cities and humansettlements

Upgrading of production equipmentEco-industrial park constructionRelief funds for employees in major natural disasters

Ensuring sustainable consumption andproduction patterns

Product ecological designZero waste to landfill certificationHazardous substance management systemGreen Manufacturing System CertificationEco-industrial park constructionSupplier management

Take urgent action to combat climatechange and its impacts

Carbon neutral strategyCarry out energy saving audit and diagnosisEnergy-saving application in production andoperationSelf-developed “Carbon Steward” managementplatformSustainable development education andpublicityConservation and sustainable useof oceans and marine resources forsustainable development

Marine, river cleanup volunteer program

Protect, restore and promote sustainableuse of terrestrial ecosystems, sustainablymanage forests, combat desertification,halt and reverse land degradation andhalt biodiversity loss

Carry out environmental impact assessment inthe early stage of park constructionTree planting activities in the parkPromote peaceful and inclusive societiesfor sustainable development, provideaccess to justice for all and build effective,accountable and inclusive institutions atall levels

Labor human rights protectionIntelligent reporting platform for conflictmineralsHuman rights, business ethics trainingPublished the “Administrative Measures forMalpractice Prevention and Control”Strengthening the means ofimplementation and revitalizing the globalpartnership for sustainable development

Participate in standard formulation andrevisionSupplier trainingLighthouse Navigator Program

Foreword

Pioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

Understanding stakeholder concerns and expectations is essential for Fii to determine highly material topics ofsustainable development. Pursuant to AA1000 stakeholder engagement standard (AA1000 Stakeholder EngagementStandard 2015, “AA1000SES”), this report sets a four-step approach to stakeholder engagement to receive stakeholderinput about sustainable operations of Fii while identifying highly material ESG topics.

Stakeholder communicationand analysis of substantive issues

Fii responds to dual materiality by taking advantage of this social responsibility report,and identifies and determines stakeholders in six aspects of responsibility, influence,closeness, dependency, representativeness and policy or strategic intention. Resultsshow that compared with the 2021 Fii CSR report, surrounding communities (includingresidents) and peer companies were added as two categories of stakeholders.Identification

criteria

MeaningIdentification resultsResult summaryResponsibility

Considering the present or future legal,economic and operating responsibility ofFii to stakeholders

Employees, government and regulatoryauthorities (including exchanges), customersand suppliers

CustomersShareholders andinvestorsEmployeesSuppliersGovernmentand regulatoryauthorities (includingexchanges)Surroundingcommunities(including residents)

Scientific research

institutesIndustry associations

Peer companies

MediaSocial organizations

Influence

Considering individuals or organizationsthat can produce influence over Fii

Government and regulatory authorities(including exchanges), shareholders andinvestors, media, social organizations,industry associationsCloseness

Considering individuals or organizationsclosely dealing with Fii

Surrounding communities (includingresidents), customers, suppliers, employees,government and scientific research institutesDependency

Considering individuals or organizationsthat operate or exist directly or indirectlyin reliance on Fii

Employees, individual suppliers (includingpower supply companies, water works,sewage treatment plants, etc), shareholders,investorsRepresent-ativeness

Groups or things that can representparticular populations or cannotcommunicate through representativetaking into account national cultures,manners and customs and territorialregulations

Employees, surrounding communities(including residents), industry associations,social organizationsPolicy orstrategicintention

Considering individuals or organizationsthat directly or indirectly affect decisionsor value strategy of Fii

Shareholders, investors, scientific researchinstitutes, surrounding communities(including residents), government

Fii values stakeholder communication and cherries every role played by each stakeholder. Active communication,correct conveying, acceptance with an open mind and real-time improvement are the orientation of acting inwhich the enterprise continuously develops.Stakeholder Ways of communication

Customers

CSR events, product exhibition, customer survey, technical seminar, customer hotline, customersatisfaction survey, periodical audit, etc.Shareholders andinvestors

General meeting, financial report, CSR report, results reports, roadshow, survey and research,teleconference, etc.Employees

Employee events, workers congress events, trade union events, corporate intranet, employeetraining and employee manual, etcSuppliers

Annual supplier conference, supplier management platform, periodical supplier training,supplier audit, strategic cooperation negotiations, exchanges and mutual visits, etc.Government andregulatory authorities

Institutional investigation, official correspondence, policy execution, information disclosure, etc.Surroundingcommunities(including residents),media and socialorganizations

News releases, social media, event participation, questionnaire survey, community volunteer

events, social charitable programs, social undertaking support programs, etc.Scientific researchinstitutes, industry

associations

Telephone communication, unscheduled visit, CSR events, academic symposiums, industry

exhibitions, industry training, exchange meetings, etc.Peer companies

Co-construction of strategic alliance, improvement of collaborative partnership and formulation

of industry standards, etc.

Planning

Stage 1

Foreword

Pioneers of innovation

Advocate of environmentalprotection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

The sources of material topics collected for sustainable development in this reportare mainly based on sustainable development standards and codes (GRI Standards,SASB sustainability accounting standards, TCFD recommendation reports, etc),mainstream ESG rating agencies’ standards (MSCI ESG rating, S&P CSA industryquestionnaire, etc), sustainability reports of peer companies, relevant policydocuments (the Self-Regulatory Guideline of the Shanghai Stock Exchange for ListedCompanies No. 1—Standard Operation, etc), academic research findings (WEF 2020White Paper, etc) and past annual CSR reports of Fii. By covering topics in threeaspects of ESG, and hearing the internal development objectives of Fii’s organizationwhile observing the three principles of inclusivity, materiality and responsiveness ofAA1000SES, 29 material topics were ultimately identified for this report.

Category Topics of 2021Topics of 2022

Explanation ofchange

Explanation of effects on topics

Society

Product quality

Product quality andsafety

Descriptionupdate

Perform high-standard quality management of productmanufacturing, properly deal with recall events or safetyissues and ensure safe use of products by consumers.Customer service

Customer relationshipmanagement

Descriptionupdate

Perfect the channels for customer communicationmanagement, conduct customer satisfaction survey, meetdiverse customer needs and improve their user experienceCommunityengagement

Social value creation

Descriptionupdate

Produce favorable impacts on community developmentand contribute to social wellbeing.Conflict mineralsmanagement

Dispute sourcing

Descriptionupdate

The reliance and quantity of raw materials purchased fromconflict areas, as well as its management capabilities intraceability and certification, ensure that products are freeof raw material conflicts.Chemical managementChemical managementNone

Hazardous chemicals involved in products, andcorresponding policy formulation or management levelof R&D investment, in order to try our best to reduce theimpact of harmful chemicals on the environment andhuman health.Health and safety

Occupational healthand safety

Descriptionupdate

Pay attention to the physical and mental health ofemployees in the workplace, carry out regular physicalexaminations, and take effective measures to reduce theharm of occupational diseases to employees.Talent recruitment

Talent attraction andretention

Descriptionupdate

Only a sound external recruitment system and internalcareer flow process can attract and retain excellent talentsin line with the company’s strategic development.Respect for employeediversity

Inclusiveness anddiversity

Descriptionupdate

Tolerate and respect the diverse backgrounds ofemployees, and give equal opportunities in management.Employee benefitsLabor rights protection

Descriptionupdate

Through the signing of contracts, flexible workarrangements, comprehensive health plans, and theimplementation of various holidays, the basic welfare ofworkers is guaranteed.Employee relationsAdded

Effective employee communication channels provide accessto the employment relationship between managementand employees while reflecting the complexity and currentissues of their workforce.Employee training anddevelopment

Added

Help employees formulate career plans, set up targetedtraining courses according to employee developmentneeds, and employees and the company grow together.Human rightsprotection

Added

Avoid child labor in the workplace, prevent forced labor,discrimination, harassment, abuse, and enslaved labor,and establish a reporting mechanism for human rightsviolations.Note:

a)Inclusivity: the need to fully understand views and needs of stakeholders and theirexpectations and thoughts for the performance of Fii;b)Materiality: understand important issues of concern to the interests of stakeholdersand Fii;c)Responsiveness: periodically respond to material needs of stakeholders and Fii。

Inclusivity

MaterialityResponsiveness

Selection results and change details of material topics of Fii

PreparationStage 2

Foreword

Pioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

CategoryTopics of 2021Topics of 2022Explanation of changeExplanation of effects on topics

Society

Patentmanagement

Integration into “Innovation

Management”R&D strength

Integration into “Innovation

Management”R&D innovation

Integration into “Innovation

Management”R&D investment

Integration into “Innovation

Management”Responsible supplychain

Updated to “Sustainable

Supply Chain”Compensation andincentive

Integration into“Compensation System”Talent echelonconstruction

Integration of “Talentattraction and retention”Training system

Integration into “EmployeeTraining and Development”Performanceevaluation andpromotionmechanism

Inclusion of “EmployeeTraining and DevelopmentEmployee rightsprotection

Incorporation of “LaborRights” and “Human RightsProtectionEmployeecommunication

Inclusion of “EmployeeRelations”

Environment

Climate change risk

management

Addressing Climate

Change

Description update

Identifying, quantifying and managing therisks and opportunities brought by climatechange to the company will benefit thefuture business continuity of the company.Energymanagement

Energymanagement

None

Reduce fuel and power consumptionduring production and operation, andimprove energy efficiency.Water resources

Water resourcesand wastewatermanagement

Description update

Reduce the use of fresh water resources,reduce the sewage generated byproduction and operation, and ensure theproper treatment of sewage to reduceenvironmental pollution.Solid wasteWaste managementDescription update

Standardize the management of varioustypes of waste, clarify the treatmentmethods, and evaluate and take measuresfor the waste generated in the upstreamand downstream of the value chain.Exhaust gasExhaust gasNone

Reduce the emission of characteristicatmospheric pollutants in production andoperation, and strengthen governancemeasures and management effortsto reduce the negative impact on theenvironment.Green productsGreen productsNone

By improving product design criteria,application of renewable raw materials,product end-of-life management andother product management methods,the company will realize low-carbontransformation and circular economy.Clean technologyinnovation

Clean technologyopportunities

Description update

Carrying out clean technology and using itas a strategic layout for the developmentof production and operation can helpenterprises seize industry opportunities.

CategoryTopics of 2021Topics of 2022Explanation of changeExplanation of effects on topicsEnvironment

Greenhousegas emissionsmanagement

Added

The disclosure of greenhouse gas emissioninformation and management methods canimprove the value chain’s confidence in thecompany’s sustainable operating environment.Low carbon economypolicy changes

Incorporating “AddressingClimate Change”

Governance

Business ethicsBusiness ethicsNone

Formulate preventive measures for anti-competition, anti-monopoly, anti-corruption, anti-fraud, commercial bribery, etc., and promote highstandards of ethics in business conduct.Risk and compliancemanagement

Risk andopportunitymanagement

Description update

Identifying a company’s current risks andopportunities and incorporating them into day-to-day management helps companies make better-informed decisions that ultimately improve businessperformance.Data Governance

Information

Security

Description update

Supervise, control, communicate, and integratethe acquisition, processing, and use of internal andexternal related party data to effectively protect theinterests of the company and customers.SustainableSupply Chain

Responsible supply chain”moved to this year’sgovernance issue

Perfect supplier access and audit mechanism,actively manage actual and potential related risks inthe supply chain, in order to avoid compliance risks.Tax StrategyAdded

The improvement of taxation strategy andmanagement method is one of the manifestations ofthe ability of enterprises to avoid risks.InnovationManagement

Added

Innovative strengths such as R&D innovation,investment, and patents are the main capital in theindustry competition of enterprises.

EconomicPerformance

Added

The effects and interests in economic activities arethe direct result of the market performance of theenterprise and reflect the development status of theenterprise.CompensationSystem

Added

Reasonable salary management stimulates thesubjective initiative of employees and improves workefficiency, which is the embodiment of the corecompetitiveness of enterprises.

CorporateGovernance

Added

Good internal corporate governance rules canpromote the rationalization of the company’s equitystructure, enhance the core competitiveness of thecompany, and improve business performance.Whistleblowing

mechanism

Inclusion of “Business

Ethics”Sustainabilitymanagement

Excluded, necessarysections of the reportExecutivecompensationmanagement

Inclusion in “Compensation

Systems”Executiveshareholdingrequirements

Inclusion in “Compensation

Systems”Connectedtransactions

Inclusion of “Businessethics”Board composition

Inclusion of “CorporateGovernance”Stakeholdercommunication

Excluded, necessarysections of the report

Foreword

Pioneers of innovation

Advocate of environmentalprotection

Responsible procurementforce practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

In 2021, GRI released a new version of the reporting standard and proposed“Double-Materiality” as a guiding principle. “Double-Materiality” requires evaluatingissues from the two dimensions of “Financial Materiality” and “Impact Materiality”.The former refers to the impact on the creation of organizational value, such asdevelopment, performance, reputation, etc., while the latter refers to the impact ofthe organization on the external economy, environment and people, including theimpact on the realization of the United Nations Sustainable Development Goals (UNSDGs).

Stage 3

Financial Materiality

指对组织价值创造的影响，如发展、绩效、声誉等

Impact Materiality

指组织对外界经济、环境和人的影响，包括对实现联合国可持续发展目标(UN SDGs)的影响。

Through an online questionnaire survey, we invited stakeholders to conduct surveys on the “Double-Materiality”of 29 topics, and set open-ended questions to collect their views and expectations on Fii’s sustainable developmentwork. By inviting various stakeholder groups to conduct surveys, a total of 12,290 valid questionnaires werecollected.

Implementationof theparticipationplan

Foreword

Pioneers of innovation

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protection

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Social value creatorPeople-oriented employer

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Statement

Performance and Appendix

According to the scoring results ofrelevant issues by stakeholders, a cross-analysis is conducted from the importanceof the company’s financial impact andthe company’s impact on sustainability.Comprehensively consider the impact ofvarious issues on corporate finance and

Stage 4

Risk and crisis management

?.???.???.???.??

?.??

?.??

?.??

Employee diversity

Exhaust gas

Tax strategy

Business ethicsEconomic performanceCorporate governanceChemical managementTalent attraction and retentionGreen productLabor relationsSocial value creation

Sta? trainingand developmentHuman rights protection

Occupational health and safety

Labor rights

Waste managementWater resources and wastewater managementEnergy management

Informationsecurity

Salary system

Innovation management

ControversialprocurementCustomer relationship managementCleantech opportunities

Product quality and safetyGreenhouse gas emissions management

Fight climate changeSustainable supply chain

Importance of impact on economic, environmental, and social sustainability

Substantive Issue Analysis MatrixActionevaluation andenhancementthe impact on sustainability, focusing on sustainability impact (60% ofweight), combined with financial impact (40% of weight), and assessingsubstantive issues Sort by high, medium and low. Get the substantiveissue matrix of Fii.

Highly substantive topics

· Greenhouse gas emissions management· Fight climate change· Sustainable supply chain· Product quality and safety· Cleantech opportunities· Controversial procurement· Customer relationship management

Medium substantive topics

Low substantive topics

· Waste management· Human rights protection· Water resources and wastewater management· Energy management

· Chemical management· Corporate governance· Economic performance· Tax strategy

· Green product· Exhaust gas· Employee diversity

· Staff training and development· Business ethics· Labor relations· Social value creation· Talent attraction and retention

· Innovation management· Salary system· Information security· Labor rights· Risk and crisis management· Occupational health and safety

Foreword

Pioneers of innovation

Advocate of environmental

protection

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force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

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Performance and Appendix

Pioneers of innovation

Clean technology opportunitiesInnovation managementGreen productsProduct quality and safetyCustomer relationship management

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Performance and Appendix

As the challenge of global climate change becomes increasingly severe, the trend of green, low-carbon and cleanmarkets is becoming more and more obvious. How to seize the opportunities brought by clean technology in thechanging market is of great importance to Fii. The company has formulated a special cleaning strategy plan, andgradually shifted its business focus to the field of clean technology, increased investment in innovation, reserved high-tech, and vigorously expanded the market for clean technology products.

Clean technology opportunities

Clean technology strategyUnder the general framework of the company’s sustainable development strategy, the strategic direction of “digitalintelligence empowerment” is proposed for the field of clean technology. Fii shall focus on the three major sectors ofsemiconductors, new energy vehicles and industrial intelligence, continue to increase investment in innovative researchand development, and continue to help energy conservation and emission reduction in industry, transportation,construction and other fields with digital and intelligent product services as the guide, and promote low-carbontransition at the social level.

Technological innovation, layout of high-e?ciency semiconductor ecosystem

The emerging wave of artificial intelligence is erupting around the world, and smart products such asChatGPT will inevitably bring higher demand for computing power. With the help of the company’stechnology accumulation in the field of high-end precision equipment manufacturing, we focus on thedirection of nano-scale semiconductor core manufacturing technology. By mining semiconductor Innovatethe manufacturing process, continuously improve the level of computing power, create applicationscenarios for artificial intelligence in various industries, and promote industrial AI. At the same time, it furtherpursues the ultimate energy consumption performance, reduces the energy consumption of equipmentoperation, and meets the market demand for “high computing power and low energy consumption”. Createa new semiconductor industrial Internet ecosystem to help solve the energy challenges facing the world.

Cleantech strategic directions:

Reduce volume and increase e?ciency, assist in green travel of new energy transportationFocusing on the lightweight and power-saving development of new energy vehicles, we plan to build afully-linked digital factory that integrates the upstream lightweight materials of new energy vehicles, themidstream batteries, drive motors, circuit systems, core components, etc., and the downstream overallVehicle manufacturing, charging piles, etc., to achieve reduction and efficiency increase in the entire valuechain. We focus on electric drive and electronic control of new energy vehicles, intelligent vehicle and vehicleInternet technology innovation, reduce the weight of the core drive system, optimize intelligent control logic,reduce energy loss during vehicle driving, improve battery conversion efficiency, and accelerate new energytransportation technology iteration.Digital transformation, opening up a diversi?ed industrial metaverse

Combining virtual reality and simulation technology to accelerate digital transformation in the industrialfield, we focus on industrial intelligent control platforms, high-efficiency data centers and “lighthouse factory”technical solutions, etc., to create a digital industrial model in the new era, strengthen factory demand-side management, and strive to reduce production. The energy consumption of the whole manufacturingprocess will eventually realize the integration of industrialization, digitalization and intelligence in theMetaverse.

By 2025, clean technology/productservice revenue will account for morethan50%

.

Based on the current situation of the company’s development, we propose:

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Performance and Appendix

Clean technology applications

We practice the company’s core strategy of “data-driven, green development”. For the three main businesses ofcommunication and mobile network equipment, cloud computing, and industrial Internet, integrate new generationinformation technology, new materials, new energy, and green and low-carbon technologies to promote thedevelopment of emerging industries.Renewable energy

Provides inverters and spare parts for solar powergeneration installations, photovoltaic equipment andaccessories, and solar battery packs, contributing tothe positive development of the renewable energyindustry.

Automated industry

ncluding Internet of things terminal equipment,industrial automatic control electronic equipment,automation fixtures, mechanical automationequipment and parts, intelligent robots, intelligentvehicle electronic products, Internet of vehiclesterminal equipment, multi-functional industrialrobots, etc., to improve industrial manufacturingefficiency.Artificial intelligenceArtificial intelligence application integrationtechnology, development of artificial intelligenceapplication software, empowering industrialintelligent development.

Smart manufacturing

Provide customers with software platform researchand development and big data analysis services,intelligent manufacturing system developmentand solution technical services, industrial Internetplatform technology development and technicalservices, industrial automation engineeringtechnology research and development design, smartfactory digital services, “lights out factory”, “lighthouseFactory”, precision manufacturing overall solutionsand engineering services, excellent consultingservices and smart factory solutions, to achieveone-stop services of intelligence, energy saving andefficiency improvement.Energy efficiency managementovering energy, environmental protection and safetySmart FMCS (intelligent factory energy managementsystem, smart park EHS overall solution), greenenergy-saving management core application system,smart grid, mobile data center computer room,photovoltaic energy storage service applicationsystem, optimized energy management mode, tapthe potential of industrial carbon reduction.Other technical applicationsLED/smart light poles, rainwater pipe networkintelligent pollution interception protectionsystem, oil pollution purification system frequencyconversion control, digital application of smartfactory, reduce industrial pollution through digitalequipment.

In 2022, through our efforts, the revenue of clean technology-related businesses has reached 214.356 billion yuan,accounting for 41.88% of all revenue. In the future, we will continue to develop the clean technology business andcontinue to move towards the 2025 phased goal.

Carbon neutral solutions for digital enterprisesCase

Fii believes that corporate carbon neutrality is a long-term, systematic action that requires the support ofsystematic planning and digital capabilities. Combined with our carbon neutrality practice, we have identifiedfour major steps to tailor a carbon neutrality roadmap for enterprises.Quanti?edcarbon data

mplementation of

carbon emission

reduction

Evaluate carbon

performance

Realize carbon

neutrality

Help companies carryout accurate carbonaccounting, and thenlay the foundation fordetermining carbonemission baselines,setting carbon targets,and planning paths;

Through 3R

actions, firststrive to achieve self-carbon neutrality, andthen reduce carbonemission in the valuechain by promotingcarbon reduction ofsuppliers and partners;

Ensure externalcompliance by meetinggovernment carbon quotaperformance, upstreamcustomer carbon neutralrequirements, andindustry agency ratingrequirements, and ensureinternal governancenorms by trackinginternal carbon reductionactions, target indicators,and performancemanagement;

Achieve carbon neutralityby disclosing carbondata, issuing carbonneutral statements,issuing product carbonlabels, etc., and passthe approval of third-party authoritativeorganizations.

In the process of practicing the path of carbon neutrality, a series of digital capabilities are needed,including carbon verification, carbon footprint, carbon assets, panoramic carbon management, digitalenergy management, etc. There is also a greater need for comprehensive introduction of carbon reductiontechnologies, including advanced energy saving and emission reduction technologies, comprehensiveenergy management, new energy/green electricity/energy storage and other technologies.Combined with the actual needs of energy and dual-carbon management of manufacturing enterprises,we have established a complete energy and carbon solution. Based on the supporting capabilities ofthe technology base, three business application platforms covering the whole scene are built: industrialintelligence platform, digital manufacturing platform, and ESG IoT platform.

1.3R: Refers to Reduce, Replace and Resolve respectively. Reduce: Realize energy consumption reduction through advanced equipment such as energy Internet of Things, intelligent group control, and high-e?ciency systems. Replace: Realize energy structure transformation through new energy

applications such as photovoltaics, green power, and energy storage. Resolve: To achieve carbon neutrality through economic means such as green economic development and carbon rights trading.

清洁技术相关营收(亿元)

2,143.56

营收占比

41.88

%

ForewordPioneers of innovation

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Performance and Appendix

According to different business scenarios, it provides carbon accounting, smart energy management,panoramic carbon management and low-carbon value chain collaboration services for enterprises. Helpenterprises to achieve refined energy management and control, accurately quantify carbon emissions,continuously track carbon targets and assist enterprises to promote carbon reduction actions to upstreamand downstream suppliers, and jointly build a low-carbon value chain.According to different businessscenarios, it provides carbon accounting, smart energy management, panoramic carbon management andlow-carbon value chain collaboration services for enterprises. Help enterprises to achieve refined energymanagement and control, accurately quantify carbon emissions, continuously track carbon targets and assistenterprises to promote carbon reduction actions to upstream and downstream suppliers, and jointly build alow-carbon value chain.

Fii continues to optimize the carbon emission management platform, and independently developed thecarbon steward tool according to the ISO 14064 standard, which covers the carbon emission factors of manycountries and regions such as China, the United States, the Asia-Pacific, and the European Union, and canmeet the requirements of energy, manufacturing, commerce, agriculture, forestry and animal husbandry.Inspections in many industries such as fishing, construction, and mining. The carbon steward tool has nowobtained the third-party certification from the authoritative organization T?V S?D, which can measure andevaluate the carbon emissions of the organization, track, record and report the carbon emissions of theorganization.

We are committed to helping enterprises optimize their energy management models, improve their carbonemission management capabilities, and move towards a low-carbon and clean future.Visual management of carbon emissions

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Performance and Appendix

On the other hand, we actively carry out the application of clean technology within the company to promote thecompany’s green and low-carbon development. At the same time, we reserve high-tech clean technology to laythe foundation for future business development.

Clean energy substitution

We are well aware that the transformation of socialenergy structure is inevitable. In order to graduallyreduce the company’s dependence on fossilenergy and enrich the technology accumulation ofclean energy applications, we are accelerating thepromotion of the application of renewable energy invarious factories, and propose a phased goal:

2025

Renewable energy application ratio40%

Medium-term goals

Long-term goals

Long-term goals

We continue to promote the construction ofdistributed photovoltaic power stations and activelypurchase green electricity to increase the proportionof the company’s use of renewable energy. Duringthe reporting period, photovoltaic power generationreached 38.13 million kwh, and purchased greenpower of 62.58 million kwh, totaling 100.7 millionkwh, accounting for about 2.8% of the annual energyconsumption.

Green power purchase certificate (part) of NanningFulian Fugui Precision Industry Co., Ltd.

We are now embarking on the installation of 32MW of solar photovoltaic equipment in our Vietnam factory. Inthe next two years, we will also plan to pilot solar photovoltaic applications in Ganzhou, Tianjin, Lankao, Hebi andother places in China. It is estimated that by the end of 2023, the total photovoltaic installed capacity will reach78MW, equivalent to a reduction of about 48,048 tCO

e。

2030

Renewable energy application ratio80%

2035Renewable energy application ratio100%

2023

Vietnam (built park)）32MW

2023

Langkawi2MW

2024Tianjin3MW

2023

Ganzhou2MW

2024Hebi

5.5MW

2025

Vietnam (newly built park)10MW

2023

Hengyang6MW

2023

Jiyuan

14.3MW

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Performance and Appendix

Energy storageWith the increase in the proportion of renewableenergy applications, in order to balance theasymmetry between energy demand and supplyand accelerate the transformation of energystructure, we are embarking on energy storageproject planning. At this stage, the energy storage ofelectricity is mainly carried out for self-owned parksand supply chain parks. Through the establishmentof an energy storage system, the excess renewableenergy power generation during the low-peak periodof electricity consumption can be stored, and thepower supply gap can be made up during the peakperiod of electricity consumption, so as to achievethe role of “shaving peaks and filling valleys”.During the reporting period, we have completedthe feasibility assessment of the Shenzhen Guanlanfactory, and it is expected to complete the pilotconstruction of 3MWh of energy storage systems in2023.

Vietnam factory solar PV pilotCase

In 2022, we will install large-scale solar power panels on the roofs of seven factories in Vietnam toprovide electricity and domestic hot water for production facilities in the park. The estimated installedcapacity of solar photovoltaic panels reaches 32MW, and it is expected to be officially connected tothe grid for power generation in 2023. The project’s annual power generation is estimated to reach32,186 MWH, which can reduce carbon emissions by about 25,881 tCO2e equivalently. Through theEMC energy management contract mechanism, it is estimated that the company can save about US$18million in electricity expenses during the 25 years of the contract.

Vietnam factory view

In addition to solar energy, the company is also working to promote the practical application of other renewableenergy sources. In the future, it is planned to adopt the cascade utilization technology of medium and deepgeothermal wells in China’s Lankao factory to develop geothermal resources, so as to carry out the pilotapplication of geothermal energy in the northern part of mainland China. This technology realizes indirect heatexchange through geothermal water heat exchange, and returns heat to water. The maximum heat supply isexpected to reach 217,095kwh. Compared with ordinary boiler heating, it has the characteristics of energy savingand high efficiency, which can greatly reduce carbon emissions and reduce the impact on the environment.At the same time, Fii implemented the concept of green transportation, gradually replaced diesel forklifts in allfactories with new energy forklifts, and improved supporting charging facilities to reduce the consumption offossil fuels generated by transportation in the park. In the future, we will continue to promote the long-termdevelopment of new energy transportation, and replace all land transportation vehicles in the supply chain withnew energy vehicles in combination with the state of national infrastructure construction.

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Performance and Appendix

Green factory

We set an example by emphasizing the creation of an efficient and energy-saving industrial operation model, andare committed to reducing the impact of the manufacturing process on the environment and the consumptionof resources. Formulate targeted energy-saving plans according to different industrial parks, apply diversifiedtechnical measures to achieve green and low-carbon management in terms of energy conservation, waterconservation, and material conservation, and further accumulate technical practice for the company’s industrialintelligent solutions.As of the end of the reporting period, 12 of our factories have obtained national, provincial and municipal “greenfactory” certification, accounting for 67%.We plan to continue to increase the coverage of “green factories” andpropose phased goals:

2023

Green factories

Proportion of greenfactories

67%

Short-term targetsMedium-term targetsLong-term targets

Note: The proportion of green factory coverage is the proportion within the scope of key carbon emission units (annual average carbonemission exceeding 10,000 t).

Lighthouse factory

We continue to explore innovative technologies for industrial digitalization and intelligence, and actively pilot the“Lighthouse Factory” solution. By improving quality and efficiency, reducing costs and reducing storage, we canachieve emission reduction and recycling, and reduce the impact on the environment. At the same time, set abenchmark to lead the digital and intelligent development of the industry, and contribute to the transformationand upgrading of the country’s manufacturing industry.

The demonstration significance of the “Lighthouse Factory” is to break through the pilot trap, successfullyintegrate multiple fourth industrial revolution technologies within a factory or a value chain, innovate businessmodels, bring considerable economic benefits, and promote sustainable transformation.As of the beginning of 2023, we have empowered and built 6 “lighthouse factories” and obtained certifications,serving more than 1,400 companies, covering electronics manufacturing, automobiles and parts, pan-homefurnishing, medical equipment, metallurgical materials, chemical materials, and mechanical processing, powerequipment and other diversified industries. The digital and intelligent solution based on the “Lighthouse Factory”has become one of Fii’s core competitiveness in the field of digital-real integration.

We propose the “Lighthouse Navigator Program”:

From 2021 to 2025, help 10 leading companiesto build a world-class “lighthouse factory”transformation benchmark; help 100 leadingcompanies to achieve complete digitaltransformation; introduce digital technologyapplications for 1,000 manufacturing companies;use the platform to help 50,000 small and medium-sized enterprises Provide industrial and technicalservices to help the transformation and upgrading ofthe national manufacturing industry.

2025

Green factories

Proportion of greenfactories

89%

2030Green factories

Proportion of greenfactories

100%

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Performance and Appendix

Build the world’s first precision machining “lighthouse factory”CaseAt the beginning of 2023, the World Economic Forum (WEF) announced the latest batch of “LighthouseFactory” list, and Fii Shenzhen Guanlan Factory was successfully selected, becoming the world’s first precisionmachining “Lighthouse Factory”.The Guanlan factory is mainly engaged in the R&D and production of precision metal products such asmobile phone precision mechanism components.Through five innovative technologies, we realize industrial digitalization and intelligent transformation:

The Shenzhen Guanlan factory is digitally connected to all equipment, realizes independent intelligentproduction in the whole process through the AI model, and filters and recycles waste from the productionline.Through the large-scale deployment of 37 4IR use cases, the introduction speed of new products wasaccelerated by 29%, the ramp-up speed of mass production was increased by 50%, the defect rate wasreduced by 56%, and the manufacturing cost was saved by 30%.Against the background of the metaverse of industrial intelligence, digital and intelligent solutions based onthe “Lighthouse Factory” have become one of Fii’s core competitiveness in the field of digital-real integration.

Create artificial intelligence-driven new product introduction, accelerate R&D and new production line debuggingDeploy a new generation of CNC light-off factories to achieve worry-free light-off productionThrough the advanced control of independent anode dyeing, flexible and intelligent collaborative control is realizedStrengthen high-precision automatic quality monitoring, greatly improving detection efficiency;Through multi-factory benchmarking analysis and production capacity optimization, the synchronous production capacityincrease of 10 factories and more than 200 workshops has been realized

Full process to achieve lights-out production

AI intelligent monitoring

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Performance and Appendix

Innovation management

Technological innovationTechnological innovation is the core competitiveness of the company, which is directly related to our futurebusiness development. We have established an excellent technical research and development team and investedsufficient research and development funds to maintain the leading technology of products, so as to meet theneeds of different customers.At the same time, we abide by scientific ethics and advocate the cultivation of social responsibility values. A strictinternal approval process is implemented for each patent application, and science and technology that endangerthe natural environment, life and health, public safety and ethics are not developed or used to ensure thatscientific and technological achievements can have a positive impact on promoting social progress.As of the end of the reporting period, we had a R&D team of more than 30,000 people, accounting for 15.90% ofall employees in the company. Among them, R&D personnel with a master’s degree or above accounted for 7.83%of the R&D team.

Percentage of R&D employeesR&D employee composition

R&DOtherMaster and aboveBachelorOther

15.9%

84.1%

7.83%

41.95%50.22%

The company vigorously develops high-tech related to new energy, energy saving and efficiency enhancement,pollution control and green building. The research and development investment in scientific and technologicalinnovation reached 11.588 billion yuan, accounting for 2.26% of the annual revenue, an increase of 6.95% overthe previous year.

In order to further strengthen our technological innovation strength, we propose:

In the future, an additional 10 billion R&D investment will be added;Continue to increase the proportion of clean technology R&D investment in current

annual revenue.As of the end of 2022, the company has effectively applied for and authorized a total of 6,078 patents, an increaseof 574 over the previous year, an increase of approximately 10.4%.

Invention patent

4,007

Utility models

1,820

Appearance design

The cumulative number of patents related to clean technology reached 1,147, an increase of 343 over theprevious year, an increase of about 42.66%.

in the past three years

1,147

200015001000

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Performance and Appendix

We are constantly enhancing our own research and development capabilities, and are increasingly focusing ontechnological innovation in clean technology. Among the number of newly added patents in 2022, the number ofpatents related to clean technology has reached 59.76%, mainly for energy saving and efficiency enhancement andpollution control. We actively explore the application of clean technology in the future company’s product level, and arecommitted to deepening research on cutting-edge leading technologies while continuously developing the company’sinnovation capabilities, laying a solid foundation for the company’s “digital intelligence empowerment” clean technologystrategic development direction Base.Technological patent achievements

Number of valid applications andauthorized patents6,078

Number of clean technology patents1,147Number of newly added cleantechnology patents

Growth rate of clean technologypatents compared to the previous year

42.7%

Research and develop high-performance nano-alloys toimprove the efficiency of intelligent manufacturing

Case

In 2022, under the leadership of Huang Boyun, an academician of the Chinese Academy of Engineering,Jingjiang Yunchuang Technology Co., Ltd., a subsidiary of Fii, joined hands with Central South University,Tsinghua University and other school-enterprise joint scientific research teams to overcome the majortopic Key Technology and Application of Large-scale Preparation of High-Performance Nano-CementedCarbide. Won the first prize of the 2022 China Nonferrous Metals Industry Science and TechnologyAward.

1.HV30：硬度单位

First Prize of Industrial Science and Technology Award

New patent categories added in ????Number of patents related to clean technologyNumber of other patents

59.76%

40.24%

Tested by the National Physical Laboratory of the United Kingdom, the main component of thehigh-performance nano-tungsten carbide has an average grain size of only 0.11μm, a hardness of2060HV30

, and a bending strength of 5710 MPa. It has successfully achieved high strength, highhardness, and high Mass production of wear-resistant alloy-based materials.High-performance nano-alloys can be widely used in high-end processing technology fields such ashigh-efficiency and high-precision drilling, cutting, and milling. The resulting knives can improve the levelof precision machining in aerospace, automotive, electronics and other manufacturing fields.Compared with ordinary cutting tools, the comprehensive processing efficiency of high-performancenano-alloy cutting tools can be increased by at least 5%. Taking this efficiency improvement as thestandard, it can generate indirect economic benefits of about 12 billion yuan per year. Effectivelyimprove the efficiency of intelligent industrial manufacturing and reduce processing costs.With the mission of reaching the forefront of the world’s science and technology, we constantly improveour self-innovation capabilities, actively explore the field of clean technology research and development,and help customers achieve green and low-carbon development.

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Performance and Appendix

Intellectual propertymanagement

Intellectual property is an important intangibleasset of Fii. In the context of increasing internationalconfrontational intellectual property laws andregulations, smart manufacturing itself also involvesa large number of technological innovation patents,which is easy to form patent barriers. Reasonableand standardized intellectual property managementis the key to protecting technological innovation ofenterprises.In order to promote the standardized managementof intellectual property rights within the company,comprehensively coordinate, systematically coordinateand comprehensively make various intellectualproperty management work, stimulate the company’score competitiveness, and ensure the sustainabledevelopment of innovative businesses, we haveformulated the Foxconn Industrial Internet Co.,Ltd. Intellectual Property Management CommitteeCharter, and established the Fii Intellectual PropertyManagement Committee (referred to as Fii IPCommittee), with the CEO serving as the chairmanof the committee. Divide into levels and implementresponsibilities.

决策

执行

规划

Fii IP委员会

委员

Fii IP委员会

主席

Fii IP委员会秘书处

秘书长、执行秘书

Decision-making levelMake decisions and guide the establish-ment of committee organizations;Decision committee strategy major events.

Planning levelExecution level

通信及移动网络设备IP分委会云计算IP分委会工业互联网IP分委会

通信及移动网络设备IP分委会

秘书处

云计算IP分委会

秘书处

工业互联网IP分委会

秘书处

Develop management policies and annual plans;Develop management indicators and superviseimplementation;Organize regular meetings and major events;Write regular work reports and report to thedecision-making team.

Assist the planning team in formulating andimplementing various work arrangements;Write regular work reports and report to theplanning team.

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Performance and Appendix

We regularly hold quarterly meetings and annualmeetings to track the progress of intellectual propertymanagement and implement various meeting decisions.With a standardized intellectual property managementmodel, we obtained the national GB/T 29490-2013intellectual property management system certificateduring the reporting period.At the same time, we also pay attention to the cultivationof intellectual property awareness in daily management.During the reporting period, we carried out 5 intellectualproperty related trainings. The training content coveredtrade secrets, infringements and risks of open sourcesoftware, covering 316 person-times.On the other hand, in order to enhance industryexchanges, we joined the China Patent ProtectionAssociation in 2021 and served as the vice president tojointly promote the development of intellectual propertyrights with the association.

National Intellectual Property Management System

Certificate

In 2022, we are involved in:

The Civil Code Entering Enterprises activity held by the Fii trade union and the Shenzhen Bureauof Justice, combined with the International Intellectual Property Day to give lectures on intellectualproperty rights and laws;Served as a guest at the roundtable discussion on “How enterprises manage and protect tradesecrets” held by Tian Yuan Law Firm;China Intellectual Property Managers’ Annual Conference and delivered keynote speeches oncorporate intellectual property strategies.

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Performance and Appendix

We believe that green products are an important wayto promote the low-carbon transformation of society.Green products can not only help us save resourcesconsumed in the production process during the designand manufacturing phase, but also help customersimprove resource utilization efficiency and reduceenergy consumption during the use phase. Ultimately,the impact on the ecological environment is reducedby recycling waste products.In order to gradually establish systematic product lifecycle management and enhance the environmentalfriendliness of products, we plan to formulate productlife cycle management policies and commitmentsbefore 2025, and improve the principles of productecological design.

Green products

Design conceptOur existing products and services cover communication and mobile network equipment, cloud computing andIndustrial Internet. The company has developed an overall Environmental Design Specification for physical products,and its subsidiary business groups such as NPBG have developed principles for product research and developmentcycle design. Our environmentally friendly design concept is elaborated from five aspects: “harmless”, “reduction”,“energy saving”, “recycling”, and “ergonomics”, which combine the principles of strengthening product cycle utilizationattributes.Harmless designThe company strictly controls the toxic and harmfulchemical substances contained in products andconsumables to ensure that the products do notcontain high-hazardous chemical elements suchas lead, cadmium, mercury, hexavalent chromium,chlorine, and bromine during the design andproduction process. EU REACH, RoHS, WEEE andother related directives.Reduced design

Reduce product weight through refined productdesign, delete appearance features and unnecessaryaccessories that are not used for engineeringpurposes, save product packaging materials,design efficient product packaging, eliminate foampackaging, optimize packaging efficiency, andmaximize product realization. lightweight. At thesame time, standardize the production processof modular products, and reduce the resourceconsumption in the product manufacturing processas a whole.

Energy-saving design

On the premise of ensuring product quality,optimize the production process and reduceproduction energy consumption. Improve productenergy efficiency, reduce energy products relatedto temperature control systems, develop low-powerproducts, optimize front-end power consumption,and reduce overall energy consumption.Design for easy recyclingOptimize component design in product design,apply reusable components, consider renewablematerials and easily recyclable materials, and recycleprocessed materials in the manufacturing process.Ergonomic designPeople-oriented, fully consider human health, safetyand comfort, and emphasize reasonable ergonomicdesign.

On this basis, the company is committed to continuously improving product design requirements. During the reportingperiod, the company referred to the domestic Green Product Evaluation General Rules GB/T 33761, Green DesignProduct Evaluation Technical Specification Server T/CCSA 253, Green Design Product Evaluation Technical SpecificationIntegrated Cabinet Data Center T/CESA 1132, etc., set out to write green product design standards applicable to Fii’sown industrial development.

We plan to complete the preparation of the standardand officially release it in 2023, which will covervarious major products such as servers, mobile smartterminals, data centers, and routers. By clarifying theproduct design and attribute requirements evaluationstandards in the product introduction and R&D stages,a strict access control mechanism is set up from thefront end.In August 2022, the China Electronic EnergyConservation Technology Association officiallylaunched the preparation of two standards: theEvaluation Specification for Carbon Labels in DataCenters (standard number: T/DZJN2022017)and the Data Center Carbon Emission ControlSpecification (standard number: T/DJN2022018).As a member of the drafting working group, Fiishared the design concept and project experienceof building green data center products, promotedthe construction of a comprehensive low-carbondata center rating system, and made positivecontributions to the overall industry’s realization ofgreen and low-carbon development.

Certificate of participation in the compilation of double

carbon standards for data centers

Promote the concept of green design and leadthe development of the industryCase

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Performance and Appendix

Process manufacturing

We are committed to continuously optimize the process, improve production efficiency, extend the service life ofequipment, save production resources, create a product line with high energy efficiency and low consumption, reduceenergy, water and materials used in the manufacturing process, and reduce the impact of product production on theenvironment in an all-round way.CategoryMeasuresEffectEnergyconservation

Efficient cleaning machine + program optimization

Approximately 20% energy savings (dependingon capacity changes)Infrared drying technologyApproximately 30% -40% energy savingsVacuum centralized supplyApproximately 75% energy savingsCentralized supply of ice waterApproximately 20% energy savingsMultistage integrated vacuum generationtechnology

About 50% reduction in gas consumption

Waterconservation

Pure water wiping cleaning technologyReduce cleaning solvents and wastewater

Material

saving

Reduced Design of Metallurgical Tool ModuleAverage savings of about 40% in raw materials

Extendequipmentlife

Tool coating35% -40% longer lifespanMolecular atomization+low-temperature rapiddrying technology

Significantly extend the service life of plasticfixtures

Partial process optimization measures and effectsIn the production process, we also focus on the recycling of auxiliary production materials to reduce resource waste.

Partial material recycling ratio

70%PET material

Recycling ratio

51.04%

Chemicals-HST-003S

70%

Chemicals - DCT T2

40%Chemicals-JR-01

61.73%

Chemicals - SAT-710

60%

Water

64.99%

Chemicals - NPET T1

98%Glass

Product use

In the entire product life cycle, the use stage is the key stage that affects the environment. High-quality, high-performance, high-durability products can effectively reduce resource consumption in the use stage and realize theconcept of green and low-carbon products. We hope that the company’s products can bring long-term benefits tocustomers, such as reducing energy consumption, reducing greenhouse gas emissions, reducing environmentalpollution, and extending product life.

Efficient Immersive Liquid Cooled Data CenterCase

In the context of the new era of digitalization, data centers, as the Internet infrastructure, have been used inall aspects of society, but the ensuing energy consumption problem is a major challenge.According to our calculations, in traditional data centers, the energy consumption of IT equipment and airconditioning systems will account for more than 80% of the annual energy consumption. We are committedto providing energy-efficient data center solutions through liquid cooling technology.Technical advantages:

Our immersive data center solution can achieve a data center PUE

of less than 1.09. Compared with traditionalair-cooled data centers, the overall energy efficiency performance can be improved by more than 15%.

1.PUE: Data center energy e?ciency indicator, PUE=total energy consumption of the data center/IT equipment energy consumption, the closer the calculated value is to 1, the higher the energy e?ciency of the data center.

In addition, the company plans to carry out ISO 14067 product carbon footprint certification for 3 products before2025, hoping to help customers better understand the greenhouse gas emissions of existing products, and furtherdeepen our green and low-carbon design to improve product use Stage resource conversion efficiency, reducinggreenhouse gas emissions.

Recycling ratioRecycling ratioRecycling ratio

Recycling ratioRecycling ratioRecycling ratioRecycling ratio

High heat dissipation: liquid has a higher thermal conductivity, the heat transfer effect of the samevolume of liquid is 1000 times that of air, and the heat dissipation performance is even better.High reliability: Reduce the negative impact that the air-cooled heat dissipation system may have onthe equipment operating environment, such as noise, vibration, humidity, dust, etc.Reduce system energy consumption: While helping IT equipment to dissipate heat, the liquid coolingsystem itself can also be used as a refrigerant for the air conditioning system. The integrated coolingsystem design allows the liquid refrigerant to help dissipate heat from both the IT equipment and the airconditioner, reducing the energy consumption of the air conditioning system by more than 50%.

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Performance and Appendix

Product recyclingWe are well aware that the improper disposal ofproducts after their end of life will have a significantimpact on the ecological environment. In order toimprove the company’s management of the entireproduct life cycle and reflect product responsibility,we are actively exploring the application of recyclablematerials and gradually integrating them into ourown product design concepts. The company plans torealize the recycling of more than 3 types of products/materials by 2030, so as to promote the effectivemanagement of products at the end of their life.We also strive to reduce resource consumptioncaused by product packaging by optimizingpackaging design, and further reflect theenvironmental friendliness of products throughlightweight and easy-to-recycle packaging design.We replaced the PE packaging bags that protect thehousings of electronic products, power supplies andremote controls with paper bags. Compared withPE bags, paper bags are easier to recycle and canreduce the weight of packaging.In addition to the product itself and packaging, wealso actively recycle waste materials to realize thesecondary use of materials and further reduce thewaste of resources. During the reporting period,for factories that produced waste materials, theproportion of waste materials that were recycled forthe second time was about 86%, and the recycledelectronic waste materials accounted for about 3.5%of the total recycled waste materials.

Made of recycled plasticCase

In accordance with the requirements of the International Computer and DisplayEnvironmental and Social Responsibility Assessment Standard (IEEE 1680.1:2018),we use recyclable plastic material PCR

for specific products, and the applicationratio reaches 75%. Mix PCR plastic material with virgin ABS plastic material to makerecyclable plastic products. This method not only reduces the greenhouse gasemissions caused by the disposal of waste plastic products, but also reduces theplastic products in the natural environment, reduces their harm to animals andplants, and helps protect the ecological environment.

PCR material application statement

1.PCR：Post-consumer Recycled material

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Performance and Appendix

While the company focuses on improving theenvironmental friendliness of its products, it also paysattention to its own quality and safety. High-quality,high-reliability products are always the direction of ourcontinuous efforts, and it is also the embodiment ofour responsibility to all customers. For product qualitymanagement, the company has established an overallquality control management system, and requires eachbusiness segment and business group to establish atargeted quality management system.As of the end of the reporting period, about 32% of theproduction and operation sites have completed the ISO9001:2015 quality management system certification.At the same time, the company started to establish thequality management system IATF16949:2016 related tonew energy auto parts in combination with the futuredevelopment plan of clean technology, and combinedthis standard into the actual production and operationprocess of the company to achieve continuousimprovement. Integrating and developing intelligentmanufacturing experience in the component field andthe cross-industry and cross-field implementationcapabilities of the industrial Internet platform, it helpsthe Internet of things and vehicle systems to cut intothe development of the Internet of vehicles.

Product quality and safety

Product hazardoussubstance commitmentIn order to ensure that the company’s products will notcause harm to human health and environmental load,we have formulated strict internal control standardsand management procedures for chemical substancesinvolved in the product design and manufacturingprocess, implemented hierarchical control, andactively communicated with suppliers Maintain activecommunication with stakeholders such as suppliersand partners to make products comply with relevantlaws and regulations and customer requirements.Based on laws and regulations on hazardous chemicalsubstances, industry standards and internationalconventions, we have developed a detailed Chemical

Substance Control List, and have identified and

evaluated all activities covered by the organization; atthe same time, the products, semi-finished productsand components designed and manufactured bythe company comply with RoHS, REACH or customerstandards.

Nanning Fulian Fugui Precision Industry Co., Ltd. passed IATF16949:2016 certificationCase

In 2022, Nanning Fulian Fugui Precision Industry Co., Ltd., a subsidiary of Fii, successfully passed theIATF16949:2016 (automotive industry quality management system) certification, marking that Fii’s qualitymanagement level has reached a new level of internationalization, standardization and normalization.

The certification system was released by IATF (International Automotive Task Force) in October 2016, andit is a quality management system standard widely used in the automotive industry today. IATF16949:2016mainly adds technical specifications for the automotive industry on the basis of ISO 9001, emphasizingdefect prevention and reducing quality fluctuations and waste that are likely to occur in the entire supplychain, indicating that the certification has passed the enterprise to meet customer needs, improve productquality and economy. The promise of benefits.

IATF certificate

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Performance and Appendix

Customer resources are the company’s valuablewealth. The company has worked hard in the fieldof precision manufacturing and electronic designfor many years, and has accumulated many corecustomers of world-leading companies. Maintainingstable relationships with these high-quality customersis the foundation of the company’s development. Wecontinue to improve our product performance, meetthe needs of different customers through personalizedservices, and maintain close contact with customers;we continue to deepen cooperation, tap potentialvalues, and explore emerging markets. We lookforward to the common growth of Fii and customers.

The company pays attention to the communicationwith customers. The business groups under differentbusiness sections regularly carry out customersatisfaction surveys, and distribute satisfactionsurvey questionnaires to important customers, soas to understand customer feedback in a timelymanner and listen to customers’ voices. Focus onthe four dimensions of product quality, qualityservice, delivery achievement, and service responseto comprehensively understand customers’ overallevaluation of the company, timely adjust industrialproduction capacity, optimize product performance,and improve response speed to meet differentcustomer needs.

Customer relationshipmanagement

Each business group sets customer satisfactiongoals every year to continuously improve productquality and service. If the target requirements are notmet, each business group will promptly formulateimprovement plans and remedial measures based oncustomer feedback to meet customer requirementsto the greatest extent. During the reporting period, thecompany received no major customer complaints.In the process of conducting business, the companywill collect and process customer information. Werespect the business secrets and personal privacy

of each customer, and pay attention to informationsecurity and privacy protection during the serviceprocess. Fii promises to obtain customer informationthrough legal channels on the premise of obtainingthe express consent of customers, and only usecustomer information for service purposes. We haveformulated special information security policiesand management methods to protect customerprivacy, please refer to Information Security. Duringthe reporting period, the company did not receivecustomer complaints caused by the disclosure ofprivate information.

产品品质交付达成

品质服务服务响应

四大维度

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Performance and Appendix

Addressing climate changeManagement of greenhouse gas emissionsEnvironmental ManagementEnergy managementWater resources managementWaste managementWaste Gas ManagementChemical ManagementEcological Protection

Advocate ofenvironmental protection

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Performance and Appendix

Addressing climate change

Governance

With the reform of the Commission on SustainableDevelopment and the addition of the ESG SteeringGroup, Fii has been able to focus on addressingclimate change and carbon-related topics. This willenable the implementation of the whole chain fromthe decision of the Board of Directors, the promotionof the committee, the planning of the steering group,and the implementation of each subcommittee.

Fii永续发展委员会主席：执行长

Fii董事会Fii董事会办公室审计单位会计经管单位法务智权单位策略规划单位产业研究单位环保暨能源管理单位工业安全暨卫生单位

采购单位公共关系单位

Fii 永续发展委员会

秘书处Fii中央部门

云计算事业群通信及移动网络设备事业群工业互联网事业群

永续发展委员会分会主委/总干事/执行秘书

执行层级

规划层级策略层级

Fii 全球风控与合规委员会

(RCMC)

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Performance and Appendix

Board of directors

The Board of directors is the highest supervision and management body for sustainable development of Fii. It urges the managers of the company to integrate the management ofsustainable developance-related issues into the daily management of the company's business operations. Its specific functions include:

·To formulate the vision, policy, strategy and corresponding priorities and objectives for the sustainable development governance and management of Fii;·To assess and formulate risks and opportunities related to sustainable development, including climate change issues, and incorporate them into the Board agenda for regular discussionin conjunction with operational guidelines;·To ensure the effectiveness of the risk management and internal control mechanism for the sustainable development of Fii, and the management adhere to the principles of businessethics, integrity and compliance;·To organise and appoint chairmen and members of Commission on Sustainable Development in Fii to conduct regular reviews of sustainable development performance, includingclimate change issues, and to receive management reporting and approval. Each month, the company will continue to review important issues related to climate change: carbon marketresponse strategy; Strategic response to customers' net zero carbon emission requirements; Renewable energy planning; The progress of energy conservation and emission reductiontargets and indicators.

Commission on Sustainable

Development

The Fii Commission on Sustainable Development is formed by the Chairman of the Commission on Sustainable Development. Under the executive secretariat, ESG steering group,Chapter organization.·Establishing Commission on Sustainable Development;·Monitor action strategies, policy guidelines, objectives, regulations/systems, annual plans and performance indicators related to climate change;·Integration of resources in the Commission on Sustainable Development under the coordinated Response to climate change;·Assign the responsible units of the committee to advance board resolutions related to addressing climate change;·Report to the Board of Directors on the progress of work related to climate change.Executive secretariat

·Integrate Commission on Sustainable Development·Assist in the formulation of action strategies, policy guidelines, objectives, regulations/systems, annual plans and performance indicators related to climate change;·Plan, monitor and verify indicators related to climate change for the Commission on Sustainable Development;·Carry out special activities/training/counseling on climate change;·Identify and implement climate change issues to help improve relevant management processes.

Steering Group

·Follow action strategies, policy guidelines, objectives, regulations/systems, annual plans and performance indicators related to climate change;·Identify the weaknesses of enterprises in addressing climate change issues and develop improvement plans;·Formulate short -, medium - and long-term goals for addressing climate change and the path to achieving them, and use a closed-loop management model to ensure that relevant workis fully implemented and effective.·Maintain best practices in addressing climate change issues under capital market ESG ratings and related programs.·Hold monthly meetings to follow up, report and share resolutions on issues related to climate change and other environmental concerns.·Carry out energy-saving audit of the park from time to time, formulate energy-saving technical standards, and be responsible for the introduction and implementation of energy-savinginnovation technologyCommission on SustainableDevelopment Branch

·Follow action strategies, policy guidelines, objectives, regulations/systems, annual plans and performance indicators related to climate change;·Identify and ensure the implementation of climate change related responsibilities and actions;·To report regularly to the Executive Secretariat on the progress of its work on climate change;·Implement strategies, issues and targets for addressing climate change.·Proactively inform the Executive Secretariat of non-compliance cases and negative public opinions related to climate change;·Upgrading best practices related to addressing climate change;·Responsible for holding regular audit meetings, and coordinating to promote climate change issues.

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Performance and Appendix

In order to encourage top-down carbon emission reduction actions, we have developed a climate-related incentive mechanism. Each business group of the company will reward teams and individuals for their contribution to theachievement of energy saving and carbon emission reduction targets, taking into account their own business characteristics and production process features.

Team rewardIndividual reward

Each business group will conduct quarterlyassessment of the group's energy conservation andemission reduction work, and give cash or honoraryrewards to the team that has achieved the energy-saving target index in advance, and urge the unitsthat have not achieved it to actively improve.

Conduct monthly, semi-annual and annualperformance evaluation for employees:

The evaluation results will be included in the annualperformance evaluation of employees, and excellentemployees will be rewarded.Carry out activities such as energy efficiencybenchmarking of the company, and give awardsor certificates to outstanding cases of energyconservation and emission reduction.

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Performance and Appendix

Strategy

Fii has developed its own carbon neutral action planto enhance climate resilience in order to better adaptand respond to the impacts of climate change. Wehave defined 1-10 years, 10-15 years, and 15-30years as short, medium, and long term time horizons,respectively, to standardize risk management, businessstrategy decisions, and target dismantling. At the sametime, the company has integrated the value chaininto its management and actively promoted carbonneutrality in the supply chain to help the industry'sdevelopment; and provided carbon neutral solutionsfor society through technological innovation, so thatthe company's business strategy can better matchthe social demand for zero carbon development andcreate greater spillover effects.In response to different levels of risk, Fii will takecorresponding measures. When the possibilityof a risk becoming a crisis is high, the companywill include it in its crisis management plan andestablish crisis notification and handling proceduresin advance; when the severity of the risk is notsufficient to constitute a crisis event, the companywill establish corresponding handling procedures oradopt general management procedures to preventand control the risk.

Risk and Opportunity Description

Risk/Opportunity

Type

Value chain

stage

DescriptionTime spanPossibility

Degree ofinfluence

Action plan

Risk

MarketDownstream

The company faces varying degrees of requirements for climatemanagement from downstream customers, which brings with itthe potential financial impact of changes in market demand.

long-termprobablehigh

◎Promote energytransformation andgradually increase theproportion of renewableenergy

◎Develop carbonneutral goals and pathplans as planned anddisclose progressregularlyEmerging law

Directoperation

Companies operating in China may be affected by emergingpolicies and regulations under the country's "carbon peak by2030 and carbon neutral by 2060" policy. For example, if the priceof carbon quota rises in the future, the performance cost of theoperating points included in the carbon emission trading systemwill be increased and the financial impact will be generated.

long-termprobablemedium

Violentnaturalfactor

Direct operation

Extreme weather caused by climate change may affect operatingplants. For example, the company's Zhengzhou plant was shutdown due to heavy rain in Henan Province in 2021.

long-termpossiblehigh

◎Ongoing riskassessment and crisismanagement◎Carry out riskemergency drills

Opportunity

Products andservices

Directoperation,upstream,downstream

Potential opportunities may arise from the development of lowcarbon emissions or climate resilient products and services,which could help companies enter new markets. Cloud computinggroups, for example, have developed energy-efficient servers.

long-termpossiblemedium

◎Continue to developand certify low-carbonproducts

Market

Directoperation

The company started its CSR management work early, and hascarried out projects such as product transformation, upgradingand replacement in advance, which has established a certainfoundation for the management of climate issues. Therefore, it ismore adaptable to climate issues than other similar companies

long-termpossiblemedium

◎Invest in carboncapture CCUS andother technologies, anddevelop carbon sinkprojects

Resourceefficiency

Directoperation,downstream

The company improves resource efficiency through independentdevelopment. For example, the "number and intelligence control"system developed by the company, combined with AI, IoT andsensor network technology, provides a series of strategiesthat can be dynamically adjusted based on actual productionconditions for rational use of various resources, which caneffectively improve the efficiency of customer resource utilizationand achieve the purpose of energy saving and emission reduction.

long-termpossiblemedium

◎System iterationcontinuously improvesenergy efficiency andreduces total energyconsumption

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风险与机遇发生概率

实质性风险与机遇

?级?级?级?级

?级

?级

Risk management

Based on the international standards ISO 31000: 2018 and COSO-ERM: 2017, Fii has established Enterprise RiskManagement (ERM) system, and the Global Risk Control and Compliance Management Committee (RCMC) isresponsible for setting policies, managing procedures, formulating major risk and compliance matters, deployingresources, etc. It reports to the Board of Directors.The company carries out detailed risk and opportunity management under the guidance of the Risk ManagementSystem and the Fii Corporate Crisis Management Plan, regularly analyzes and evaluates climate change-related risksand opportunities, analyzes and ranks the levels of risks and opportunities, and adopts corresponding treatment plansfor risks and opportunities of different levels in order to mitigate possible hazards and seize possible opportunities inthe future.

Management system

Fii risk and opportunity management process

Based on management interviews, stakeholder surveys and peer benchmarks, we identified substantial climate-relatedrisks and opportunities that would have a material economic or strategic impact on the business, graded by probabilityof occurrence and severity of impact.

Risk and opportunityidentification

Risk and opportunityanalysis

Risk and opportunityassessment

Manage risks andseize opportunities

Identify potential risksand opportunitiesand determine theirvulnerability andimpact throughmanagementinterviews, stakeholderresearch and peerbenchmarking

Analyze theoccurrence probabilityand severity, and setrisk and opportunitylevels

Rank of risk andopportunity matrixbased on certaincriteria

Identify and evaluatetreatment methods,prepare andimplement treatmentplans, analyze andevaluate the severityand possibility ofresidual risks, and addrisk control measures;Analyze opportunities,act on them andoptimize themcontinuously

Fii regularly conducts risk analysis and assessment work related to climate change. The company clearly defines climaterisks and opportunities, and through management interviews, stakeholder research and peer benchmarking, identifiessignificant climate risks and opportunities that have a material economic or strategic impact on the business.The material financial or strategic impact can be expressed as a high proportion of affected business units, a largescale of affected business units, and a high potential for shareholder or customer attention. Companies grade risksand opportunities according to their occurrence probability and severity of impact.Among them, the probability of occurrence is divided into almost certain (level 3), probable (level 2) and almostimpossible (level 1) according to the possibility of occurrence. The severity of the impact is divided into very serious (level

3), serious (level 2) and slightly serious (level 1) from five perspectives, including corporate image, compliance, customer

relationship, achievement of organizational goals and scope of entity influence. Fii defines risks and opportunitieswith probability and severity above level 2 as material risks and opportunities (see shaded below) that have a materialimpact on the company.

Identification and evaluation

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?级?级?级?级

?级

?级

剧烈自然因子产品和服务（生产环节）

资源效率市场（客户要求）

新兴法规（碳市场交易）产品和服务（创新环节）

市场（目标市场政策）市场（公共部门激励）

气候风险气候机遇

In 2022, RCMC will conduct risk identification with each department after reporting internal and external risk analysis,risk radar map and senior managers of central functional units and business groups to the CEO. A total of 41 importantrisks were identified by 15 central functional units. "ESG& Carbon issues", together with "security incidents" and "jobloss/turnover", are among the top three issues of high concern after considering their incidence and severity.In view of different levels of risk, Fii actively takes corresponding measures. When the risk is highly likely to becomea crisis, the company will incorporate it into the crisis management plan and pre-formulate crisis notification andtreatment procedures; When the risk is not serious enough to constitute a crisis event, the company will establishcorresponding treatment procedures or adopt general management procedures to prevent and control risks.

In response to the 2022 annual risk assessment, there are three new issues of high interest, including ESG&Carbon. After assessment, the improvement suggestions of risk control measures under this topic areformulated:

Up to now, the above 8 risk control measures have been completed.

1. Research new regulations or stakeholder requirements

1. Analysis of new trends in climate issues and their performance against benchmarking peers

2. Pay attention to the requirements of new regulations or stakeholders, and assist

responsible units to provide trend analysis for deviations

2. Disclose information related to climate change performance and planning

1. Regularly disclose climate change performance and future plans to stakeholders

2. Participated in the Carbon Disclosure Program (CDP), FTSE Low Carbon transition

questionnaire and other ratings, transparent disclosure of climate strategy and performance,and initiated climate-related financial disclosure (TCFD) to strengthen corporate resilience

3.ssess the impact of ESG rating and explain it in the annual report

1. Analyzed the missing points of ESG rating and proposed improvement requirements to the

responsible unit

2. Evaluate and explain the necessity of disclosure of non-compliance incidents in CSR reports

4. Implement emission reduction and green electricity investment

1. Continue to promote the implementation of energy conservation and emission reduction

2. Green power deployment and investment planning

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Performance and Appendix

Indicators and objectivesFii carbon neutral targets are set based on carbon emission data inventory, carbon neutral policy analysis and industrybenchtracking, and are measured using the Scientific Carbon Target Initiative (SBTi) tool to verify the rationality of thetargets.

Conduct a comprehensive carbon inventory in scope 1, 2 and 3 to understand the company'sown carbon emission status and serve as the benchmark for setting reasonable carbon targets

Data inventory

Understand the national carbon neutral target and the carbon neutral target of internationalpeers or customers to set ambitious targets

According to the 1.5℃carbon reduction scenario of the Scientific Carbon Target Initiative (SBTi),the rationality of the target was calculated and verified

Short term: an 80% reduction in operational carbon emissions by 2030 from the 2020 base year, with80% renewable energy use;Medium term: operational carbon neutrality by 2035 (covers Scope 1 and Scope 2 emissions);Long-term: Net zero emissions from the value chain (covering Area 1, 2 and 3 emissions) by 2050.

Based on the above steps, Fii sets a carbon neutral target commitment:

In 2022, Fii will carefully plan the path to achieve the carbon neutral goal of Fii operations, taking into account externalpolicies, stakeholder concerns, and the parent company's carbon neutral goal. Disassemble each business divisionlayer by layer and sign a letter of commitment.2035

Operating carbon neutral target yearReduce operational emissions

Reduce emissions by 18.46% by 2025, 29.98% by 2030, and 36.71% by 2035 by replacingenergy-intensive and inefficient equipment, improving processes and procedures, andupgrading energy systems to improve the efficiency of energy use in the production process.Transformation of energy structure

Replace aims to reduce emissions by 55-65 percent by 2035 by investing in solar and windenergy projects, becoming a shareholder or owner of new energy projects, and buyingrenewable energy contracts such as green electricity and green certificates.

Carbon offset and carbon capture

The annual carbon reduction that cannot be achieved through Reduce and Replace willbe made up through the purchase of CCers, and the remaining 5-10% of greenhouse gasemissions will be offset to achieve carbon neutrality by 2035.

Policy and peer benchmarking

Propose goals and validation

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Performance and Appendix

Fii carbon master platform helps carbon neutralityCase

As an important premise of carbon management, carbon emission accounting is an essential work forenterprises. In 2022, Fii independently developed a digital Carbon management tool - Carbon ManagerCarbon Assistant based on the recognized international carbon verification standards ISO14064-1,GHG protocol and domestic carbon verification standards. The system provides ISO standard carboninventory form, authoritative carbon emission factor database and top-down multi-person collaborativecarbon inventory task management functions to help enterprises carry out carbon compliance inventory,transparent carbon management, and help achieve carbon reduction goals. Carbon Assistant has previouslysuccessfully passed T?V S?D’s product compliance assessment. So far, Fii hopes to combine its ownindustry practice, adhere to scientific and technological innovation, actively provide carbon neutral solutionsto the society, help enterprises to achieve low-carbon green transformation, and provide a convenient pathfor enterprises to achieve accurate carbon accounting.

The greenhouse gas emission data for 2022 will be calculated by Carbon Assistant, a carbon manager based onFulian's independent research and development platform.

Social participationWe uphold an open and cooperative attitude, and actively cooperate with industrial chain partners and other socialparties to build a low-carbon ecological environment.We uphold an open and cooperative attitude, and activelycooperate with industrial chain partners and other social parties to build a low-carbon ecological environment.Case

In December 2022, by virtue of its outstanding performance in implementing green low-carbon and digitaleconomy, Fii was awarded the title of "Carbon Peak" leading enterprise in China's industry, which was thefirst batch of 42 green low-carbon demonstration enterprises selected by China Federation of IndustrialEconomics.

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Performance and Appendix

Case

The company joined Shenzhen Green Finance Association as a founding member, and participated ingreen finance related topics investigation and research, formulation of industry standards and norms,communication between government and enterprise, bank-enterprise connection, green and sustainablefinance capacity building and training and other activities through this platform.

Case

The company actively participates in all kinds of green environmental protection, energy saving and low-carbon themed activities organized by government agencies, key industry associations and other units,practices corporate social responsibility, and steadily increases the green influence of the industry. In June2022, Fii was invited to make low-carbon initiative in the publicity activities of World Environment Day inLonghua District. In December 2022, Fii was invited to participate in the 2022 Carbon Peak Carbon neutralForum and Shenzhen International Low-carbon City Forum and share the theme. At the end of December,Li Junqi, chairman of Fii, was invited to attend the third "Belt and Road" Construction and ManufacturingPower Construction Collaborative Development Forum and 2022 China Industrial Carbon Summit Forumand delivered a keynote speech.

In the future, we will orderly promote carbon management and energy system optimization, including equipmentreplacement, production process improvement and other energy-saving and emission reduction measures toreduce carbon emissions, year by year increase the proportion of renewable energy use, supplemented by carbonoffsetting measures, actively respond to climate change governance trend. In addition, we will take it as our duty tohelp the global manufacturing industry to upgrade green. We will build on our strengths and contribute to the newdevelopment pattern of "new infrastructure plus double cycle".

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Performance and Appendix

Management ofgreenhouse gasemissions

Greenhouse gas emissions management, characterizedby carbon neutral target setting and path planningactions, began in 2021. With 2020 as the base year, Fiiwill complete the greenhouse gas emission accounting(including Scope I, 2 and part of Scope III) and update ityear by year, and put forward the "3R" path to graduallyachieve carbon neutrality in its own operations andthe whole value chain in accordance with the strategyof "energy conservation, emission reduction andrenewable energy supply priority, supplemented bycarbon offset". We will focus on energy conservationand emission reduction, technological innovation,development and investment in renewable energy,procurement of renewable energy and exploration ofcarbon sequestration.

The "3R" path facilitates net zero operations

Replace Transformationof energy structure

REPLACEReduceReduce operational emissions

REDUCE

Resolve Carbon offsetand carbon capture

RESOLVE

Greenhouse gas emissions from electricityconsumption are the main source of carbonemissions at the operational level of Fii.Each business group of the company hasgradually carried out key actions for low-carbon transformation, and adopted energy-saving and emission reduction measures,including replacing old equipment, optimizingand improving production process, motorfrequency conversion, waste heat recovery,intelligent control, etc., in order to reduce itsown operating end carbon emissions.The company's environmental protection andenergy unit coordinates annual energy savingindicators, formulates various energy savingstandards and policies, promotes innovativeprojects, and carries out energy audit andperformance audit. Each business group shallformulate its own energy-saving targets anddecompose them to each manufacturing office,implement energy-saving indicators, promotevarious energy-saving projects, and makeregular statistics on total energy consumptionand energy intensity data.

The adoption of renewable energy suppliesis an important pillar of achieving operationalcarbon neutrality by 2030. Fii will continue toincrease the proportion of renewable energy,aiming to achieve 80% renewable energy supplyby 2030 and 100% renewable energy supply by2035.The clean energy development unit of thecompany manages the investment anddevelopment of renewable energy as a whole,and calculates the project input and potentialincome. At the same time, Fii is actively trying tobuy green electricity to achieve its own net zeroemissions operation.

Fii is also exploring carbon capture technologythrough direct investment and supporting theimplementation of nature-based Solutions(NbS) to offset greenhouse gas emissions thatare difficult to be eliminated by reducing andreplacing, so as to help achieve the emissionreduction target.

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“1R”

REDUCEPRACTICE

The company replaces the old equipment with highenergy consumption and low efficiency, optimizes andimproves the process and process, and upgrades theenergy management system to improve the energyefficiency in the production process and achieveoperational emission reduction. Each business groupsubdivides the energy use structure and type, andcarries out many energy-saving technical reformactions, such as central air conditioning group controlsystem, replacement of high efficiency cooling towerpacking, frequency conversion of water pump fan,replacement of maglev technology of ice water mainengine, natural lighting and LED lighting, intelligentcontrol and other technologies.At the same time, with "intelligent manufacturing" and"industrial Internet" as the development direction,Fii takes clean technology innovation as the strategicfocus of the company, and constantly improves theproduction efficiency and energy use efficiency ofunit products. Intelligent energy online monitoringsystem has been established in some parks of thecompany to conduct fine energy use control throughdigital means and effectively improve energy useefficiency. The system has the functions of real-timeenergy consumption monitoring, energy consumptionanalysis, energy consumption benchmarkingand abnormal energy consumption warning, andimplements energy saving control strategies forrelated energy consumption equipment, and carriesout comprehensive energy management from twoperspectives of management and technology.

Fii is actively promoting the transformation of energystructure, and plans to achieve the adjustment ofenergy structure and reduce the carbon emissiongenerated by its own operation through independentdevelopment of renewable energy projects, overseasinvestment and merger and acquisition. In order toensure the supply of renewable energy, the companyset up a clean energy development unit, equippedwith professional teams and personnel to carry outinvestment and development of renewable energy,in order to establish a sound carbon managementsystem.Through target dismantling, we propose short -,medium - and long-term targets for sustainable energyuse: 40% by 2025, 80% by 2030 and 100% by 2035.In the next step, the company will give full play to itsadvantages in land resources and deploy distributedphotovoltaic power stations and large-scale groundphotovoltaic power stations in the park. Invest inthe development of renewable energy projects suchas wind power generation, energy storage, smartmicro-grid and smart energy management systems,and gradually increase the proportion of electricityconsumed by renewable energy by combiningrenewable energy procurement and green electricitytrading. We plan to achieve approximately 3,050megawatts of renewable energy development andinvestment by 2030.

Fii will prioritise ways to reduce operational carbonemissions and boost renewable energy supply toachieve carbon neutrality. For carbon emissions thatcannot be achieved through operational emissionreduction and energy transition, the company isconsidering achieving carbon neutrality by conductingNbS directly or purchasing carbon offsets generatedby such projects.At the same time, the company will also carry outresearch and consider investing in CCUS (CarbonCapture, Utilization and Storage), which has moresignificance for both economic development andenvironmental protection, when the technology ismore mature, to help offset part of its own operationalcarbon emissions.

“2R”REPLACEPRACTICE

“3R”RESOLVEPRACTICE

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Performance and Appendix

The "3R" case

REPLACEREDUCERESOLVE

Longhua, Guanlan, Taiyuan and other parksvigorously promote the maglev/centrifugalfrequency conversion ice machine replacementproject, a total of 18 ice machines in 2022(2 have been completed, 16 are underconstruction), after the replacement of energysaving rate ≥35%, will continue to promotethe gradual replacement of ice machines withservice life of more than 11 years in each park,the completion of all replacement is expectedto save 156 million KWH of electricity per year.Carbon reduction of 97,000 tons/year can saveelectricity cost of 101 million yuan/year

The company has built its own distributedphotovoltaic power station in the park, with atotal installed capacity of 38MW and an annualgenerating capacity of 38 million KWH. In thefuture, it will continue to promote the use ofthe park roof should be fully covered withphotovoltaic, and the total installed capacity isexpected to reach 96MW in 2025. At the sametime, the company actively participates in thegreen electricity trade. In 2022, the NanningPark purchased more than 60 million KWH ofgreen electricity, accounting for about 50% ofthe annual electricity consumption of the park.The emission reduction of 54,200 tCO

e can beachieved.

In 2022, its subsidiaries, Fulian YuzhanTechnology (Shenzhen) Co., LTD., ShenzhenFulian Fugui Precision Industry Co., LTD., andFulian Precision Electronics (Tianjin) Co., LTD.,will participate in carbon market trading.

Through the regular meeting of policy and progress,timely follow up the dismantlement, implementationand follow-up of each target, make "3R" reallybecome the important work direction of Fii in thefield of greenhouse gas emission management.

In addition to our own operations, we are committedto making full use of our technological advantages toachieve carbon neutrality in the GVC and society as awhole. See white Paper on carbon Neutrality in Fii

“3R”path

A total of 855 reduction and energy-savingprojects were promoted, with a totalinvestment of 163 million yuan and a totalcarbon reduction of 150,300 tCO

e.

1RReduce

The total amount of renewable energyused was 10,070,400 kwh, and the carbonreduction was about 57,400 tCO

e.2RReplace

A total of four legal entities participate incarbon market trading.3RResolve

2022 Summary

序号重点排放单位名称2021年度履约情况

深圳富联富桂精密

工业有限公司

已履约

深圳市裕展精密科技有限公司

已履约

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Performance and Appendix

Zero damage, zero loss,

zero pollution

Abide by laws and regulations, fullparticipation, safety and health people-oriented, energy saving and consumption

reduction to promote development,sustainable development for excellence

Environmental ManagementImportant achievements in 2022

Environmental health and safetymanagement system manualEnvironmental health and safety policyAll employees sign ESG comprehensivemanagement indicatorsEHS board management systemMeasures for emergency management ofmeteorological disasters

Environmental pollution accidents were 0Pollutant monitoring rate is 100%

Future actions and goals2023

The pollutant discharge monitoring rate of keypollutant discharging units was 100%Environmental pollution accidents were 0

2025

The pollutant discharge monitoring rate of allpublic institutions is 100%

Case

In 2022, Fii published the Environmental Health and Safety (EHS) Management SystemManual, further standardizing the daily operation and management of EHS. With riskmanagement and control as the core, we adopted the operation mode of "planning- implementation - Inspection - Improvement (PDCA)" to continuously improve EHSperformance. To support the company's EHS vision and goals.

EHSVision

EHSgoal

EHSpolicyTo be a model of EHSmanagement in global technology

manufacturing enterprises

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Performance and Appendix

Fii implements the environmental health and Safety (EHS) management system manual and relevantregulations from top to bottom. In order to standardize the working mechanism and carry out theenvironmental management work, we set up the EHS Committee director to lead and make decisions.Central departments and the Office of THE EHS Committee (including the Industrial Safety and Health Branchand the Environmental Protection and Energy Management Office) participate in the planning. The Chair/Director-General/Executive secretary of the branch EHS Committee and all members of the union executivework together to participate in the environmental management system and related systems.

System managementFii will green development as the core of sustainable management of enterprises. As a global company, we fullyimplement ISO 14001 environmental management system certification and ISO 50001 energy management systemcertification in accordance with international standards and host country environmental regulatory requirements.At the same time, we are required to pay environmental protection-related taxes and fees in accordance with theEnvironmental Protection Tax Law of the People's Republic of China (2018 Revision) and other regulations. Duringthe reporting period, Fii invested a total of 395,482,300 yuan in environmental protection, and the coverage rate ofpolluting-discharge licensees certified by ISO 14001 reached 85%.Number of units with ISO

14001 emission permits

units

(coverage rate of units with pollutantdischarge permit is 85%)2022 Reach

2030 goals

units

（100% coverage of units with）Certificate display

Number of key energy consumingunits that have passed ISO 50001

certification

units(coverage rate of key energy

consuming units is 67%)

units

(coverage rate of key energyconsuming units is 100%)

Number of UL 2799 ZeroLandfill Gold Certified units

units

units

Certificate displayCertificate display

2022 Reach2022 Reach

2030 goals2030 goals

EHS委员会主任

Fii管理总处

EHS委员会办公室

通信及移动网络设备

EHS分委会

云计算EHS分委会工业互联网EHS分委会

通信及移动网络设备

EHS分委会秘书处

云计算EHS分委会

秘书处

工业互联网EHS分委会

秘书处

工业安全暨卫生处环保暨能源管理处

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Performance and Appendix

ENVIRONMENTAL CLAIM VALIDATION SUMMARYHon Hai Technology Group (Foxconn)

Validation Period:

Claim:

Claim:

Method:

Method:

Facility:

Facility:

Foxconn Nanning Campus has achieved Zero Waste to Landfill Platinum Operations, 100% diversion, with 4%Thermal Processing with Energy Recovery.Foxconn Nanning Campus includes:

. Nanning Fulian Fugui Precision Industry Co., Ltd.

Environmental Claim Validation Procedure (ECVP) for Zero Waste Classifications, UL 2799A First Edition, Dated July20, 2018

Environmental Claim Validation Procedure (ECVP) for Zero Waste Classifications, UL 2799A First Edition, Dated July20, 2018Factory B Foxconn Nanning Industrial Park No.51, Tongle Road, Nanning City, Guangxi Province, 530033 China

Factory B Foxconn Nanning Industrial Park No.51, Tongle Road, Nanning City, Guangxi Province, 530033 China289971-4160

289971-4160? 2019 UL ? 2211 Newmarket Parkway, Marietta, GA 30067-9399 USA ? T: 888.485.4733 ? F: 770.980.0072 ? W: ul.com/environment

Compliance management

In 2022, Fii took the establishment of environmental protection mechanism and standards as its core work. Byreleasing the long-term management mechanism and auditing standards of environmental protection hidden dangers,and planning, investigation and auditing arrangements, we carried out hidden dangers detection work in 11 key parks,so as to promote the orderly implementation of the special work of hidden dangers rectification. From these, we havefound the following outstanding environmental protection projects:

The whole process control of online monitoring equipment and quick test reagent package ensures stableoperation.

Longhua Park - the whole process of sewage controlCase

Nanning Park has obtained UL2799 zero landfill Platinum certification, achieving 100% conversion rate of waste.CaseNanning Park - UL2799 Certification

Through the CNC process and steel chip separation of cutting oil recycling, the annual benefit of 400,000 yuan.

Comprehensive bonded zone - cutting oil reuseCase

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Performance and Appendix

The sludge discharged into the waste water station is identified as hazardous waste. It is determined that itdoes not have dangerous characteristics and does not belong to hazardous waste, so as to reduce the riskof environmental protection.

Guanlan Park - Identification of hazardous waste sludgeCase

During the report period, through environmental protection investigation and audit work, we organizedcross-audit of various parks, and carried out a series of technical training and case evaluation work. Whileunderstanding the energy conservation status of various parks, we followed up the closed-loop managementof hidden dangers, explored a total of 201 improvement opportunities and compiled 82 excellent projectsinto a book.

Environmental hazard auditsCase

Releasestandards

Question-answeringtraining

Self-inspectioninspector

Hidden dangerclosed-loopmanagement

Research process:

Long-termmanagementmechanism

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Performance and Appendix

Energy saving audit of CoC Code of conductCase

In order to confirm the compliance of CoC implementation in each plant area, achieve real-time earlywarning, manage ESG disputes in advance, promote the improvement of ESG&CoC risks in each plantarea, implement PDCA closed-loop management, the environmental energy department assistedthe audit and risk control department to jointly carry out CoC audit, and explored 78 energy-savingimprovement opportunities.

On-site

audit

Send thereport

Improvementplansubmission

Trackingimprovement

Identifyimprovements

Keep improving

P

In the KPI setting of Nanning Park, "energy saving and emission reduction" are excludedand "absolute carbon emissions" are increased, with clear goals.

D

Longhua Park has formulated the Energy Conservation and Emission Reduction Promotion Plan for Each PlantEnergy Conservation and Emission Reduction Branch in 2022, which sets 51 tasks from five dimensions of "energyconservation management, system construction, promotion of key technical transformation, energy conservationpromotion and energy conservation audit", with a comprehensive and clear management plan to help achieve energyconservation and emission reduction goals.

C

Guanlan Park will track the achievement of the goals every month, explain the reasonsfor the units that fail to achieve the goals and make catch-up plans, so as to continuouslyimprove the energy conservation management.A

Nanning Park tries to adopt a reward and punishment mechanism of "reducing energysaving profit and loss by the amount of green certificate and thermal power premium forexcess emission" for units that fail to meet the standards.

AP

DC

PDCAClosed loopmanagement

highlights

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Performance and Appendix

Fii and its subsidiaries shall strictly comply with the environmental Impact Assessment Law of the People's Republicof China and other relevant laws and regulations, and carry out environmental impact assessment work. We havedeveloped an annual environmental monitoring program, and regularly entrust qualified third-party testing agenciesto monitor waste water, waste gas and boundary noise. During the reporting period, the Company and its subsidiarieswere not subject to administrative penalties due to environmental protection issues.

Environmental integrity enterprises

According to the regulations of the environmental credit evaluation measures for enterprises andinstitutions, the above companies have obtained the green card of environmental credit evaluation,and the credit rating is an environmental integrity enterprise.

Fii Precision Electronics (Zhengzhou) Co., LTD

Fii Technology (Jiyuan) Co., LTD

Fii Technology (Hebi) Co., LTD

Fii Yuzhan Technology (Henan) Co. LTD

Fii Precision Electronics (Tianjin) Co., LTD

Emergency managementIn accordance with the Environmental Protection Law of the People's Republic of China, the National GeneralEmergency Plan for Public Emergencies, the National Emergency Plan for Environmental Emergencies and otherrelevant laws and regulations, we have formulated specific emergency plans for environmental emergencies, and setup an emergency team to regularly identify the company's existing environmental risks and key sources of danger.In order to ensure the minimum impact on the environment, the types of pollutants, the scope of influence and thetreatment measures generated by the possible risk accidents are analyzed.

Environmental emergency drillCase

According to the regional climate and operation conditions of each park, we have organized and carried outa number of emergency drills to ensure that the emergency plans are practical. Through several emergencydrills, while improving the response ability of the emergency team, we can effectively deal with environmentalemergencies and further guarantee the legal compliance of production and business activities.

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Performance and Appendix

Energy management

Important achievements in 2022

Smart Energy Management Platform

Achieved 18.46% reduction in emissionsRenewable energy accounts for 40% of thetotal

Future actions and goals

2025

Achieved 29.98% reduction in emissions

2030

Development of "Central Air ConditioningHigh Efficiency Room Technology andEvaluation System Standard Guidelines"

Renewable energy accounts for 80% of thetotal

Five coretechnologies

numerical

control

connection

groupcontrol

cloud

AI

Four majorcapabilities

energy datavisualizationpreventivemaintenance

remote start-stop and edgeintelligencestable andreliableenergy supply

Sixenergy

types

water

electricity

gas

steam

renewable

energyheating

On the basis of ISO 50001 energy managementsystem certification, Fii has improved energyefficiency utilization through energy saving planning,energy consumption index management and energyconservation inspection. We retrofitted, replacedor eliminated existing high-energy equipment toreduce the impact of production and operation onenvironmental pollution.

The smart energy management platform can digitallydisplay the usage, energy distribution and trend,carbon emission reality and trend of six majorenergy sources, as well as knowledge database andintelligent alarm function, so as to help employeesbetter manage energy. During the reporting period,the total energy consumption of Fii Industry is13,748,634 GWH, and the consumption intensity is2686 GJ/ RMB revenue.

Fii to increase the investment in energy conservationprojects, continue to reduce the intensity of energyuse. In 2022, we comprehensively promoted energyconservation projects, with a total investment of 163million yuan, and implemented 855 environmentalprotection and energy conservation and emissionreduction projects, including measures such ashazardous waste emission reduction, lighting energyconservation and equipment replacement, with atotal carbon reduction of 150,300 tons.

"Energy transformation can save costs, can be converted into benefits, not just for the sake of savingenergy. The purpose of saving energy is to achieve zero carbon goal, and to increase operatingefficiency and save cost. The cost of electricity is increasing year by year, and the operating benefit ofeach institution needs to be increased in cost control. How to control the operating cost is a majorproject of Fii.

?Chairman Cheng Hongmeng (Source: Fii Q3 Quarterly Meeting Minutes)

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减排目标分解

其他设备FiiISO?????//空调系统AHU

管理系统环保设备照明系统CNCPVD生产设备空压系统

We divided the emission reduction target into 7 modules and 26 units according to the use scenario toexplore the energy saving potential in production and operation. According to different energy savingmodules, we set control details, so as to help to follow up the progress of the implementation of energysaving goals and determine whether the expected effect is achieved.

Case

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Performance and Appendix

●Air conditioning system

Promote energy conservation projectsCase

Through energy-saving audit, we found 82 outstanding projects from 11 parks, including air conditioningsystem, air compressor system and production system.

●Air pressure system

●Production system

In Longhua/Hangzhou Park, the annual average energy saving rate is over 30% by replacing the maglev/

DC inverter ice water host

In Nanning/Hangzhou/Tianjin/Zhengzhou Park, the use of chilled water system

to make full use of natural cold source, in the spring and autumn over the

season of about 50% energy

In Zhengzhou Park, by using compressed airultrasonic leak detection equipment, each leakpoint can save 5,000 yuan a year

In Zhengzhou Processing Zone, the compressed airhumidifier is used instead of steam humidification,and the annual energy saving rate is more than 70%

In Nanning/Tianjin Park, after injection molding machine servo motor transformation,

the annual comprehensive energy saving rate is more than 75%.

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富联裕展节能诊断CaseCaseMaglev ice machine replacement

Considering the high energy consumption of air-conditioning and the factors affecting the efficiencyof air-conditioning using for a long time, Fii has formulated the Central Air Conditioning High EfficiencyRoom Technology and Evaluation System Standard Guidelines, and will build pilot demonstration areasand gradually promote the construction of central air-conditioning efficient room. Taking LonghuaPark as an example, the service life of the air conditioner will be increased from 15 years to 25 yearsby replacing the ordinary centrifugal ice water unit with the suspended maglev ice water unit, and thepower consumption will be reduced from 2.21 million to 1.44 million yuan.

By analyzing the current situation of energy utilization, we actively identify problems and tapthe potential of energy conservation, further reduce energy consumption and production costs,promote energy management and promote our commitment of "sustainable operation throughcontinuous improvement".

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Case

Case

Water resources managementImportant achievements in 2022

Total sewage recycling amount of

2.36 million tons

Water density decreased by 3%from 2021

Future actions and goals

2023

Water density decreased by 6%from 20212025

At least 1 campus has beencertified by AWS

At least 3 campus has beencertified by AWS

2030

The management of water resources is one of theimportant links for Fii to fulfill its environmentalprotection commitment. We strictly abide by therelevant national laws and regulations and localpolicies, minimize the water density, through theuse of intelligent water resources management andcontrol system, real-time monitoring of water qualitydata and wastewater reuse, further strengthen waterresources management.The main source of our water supply is municipalwater. We increase the rate of sewage reuseby using reclaimed water to green system andconcentrated water to flush system, etc. In 2022, atotal of 142,500 tons of reclaimed water was usedby Fii, with a recovery rate of 65%. No illegal waterintake and drainage incidents occurred during thereporting period.The wastewater discharged by us mainly comesfrom the industrial wastewater of the workshopand the domestic water of the employee park. Thepollution indicators of the monitored wastewaterinclude biological oxygen demand, chemicaloxygen demand, suspended matter, ammonianitrogen and animal and plant oil, etc. In thewatershed where the project operates, we strictlycontrol sewage discharge and strive to reducethe impact of sewage discharge on the localcommunity ecosystem.

Lankao Park reclaimed water cooperation project

Fii Lankao Industrial Park makes full use of the resources of the sewage treatment plant nearby the factory,and has reached the cooperation intention of reclaimed water reuse with Beijing Enterprises Water Group(China) Investment Limited. The waste water in the park can meet the future industrial water demand of thepark after being treated and regenerated, with the focus on reducing the consumption of water resourcesand the generation of water pollutants. It is expected to achieve zero discharge of sewage before 2025.

Special training for wastewater station operation

In July 2022, we carried out special training on the operation and management of wastewater stationsfor all subordinate public institutions, which not only enhanced the professional skills of on-sitemanagement and technical personnel, but also further enhanced the initiative consciousness of allpublic institutions to carry out water resources management.

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At least 12 UL2799 waste zero landfillgold grade certification

Waste management

Important achievements in 2022

Emergency drill for hazardouswaste leakage

Future actions and goals

2023

2025

2030

Fii strictly abides by relevant environmentallaws and regulations, promotes the harmlessdisposal of solid waste, effective recovery andcomprehensive utilization of resources, effectivelymanages the waste production increment throughthe improvement of process and technology,

and reduces the waste end disposal amount byimproving the effective utilization rate of rawmaterials and auxiliary materials, so as to achievethe waste emission reduction target.We recycle part of general waste such as waste paper

and plastic, dispose hazardous waste in compliancewith internal system, and transfer 100% to qualifiedunits for processing. In 2022, 310,605.03 tons ofhazardous waste and 8290,829.30 tons of generalindustrial solid waste will be produced, totaling8601,434.33 tons.

Nanning Park UL2799(Platinum Grade)

At least 14 UL2799 waste zero landfillgold grade certification

At least 18 UL2799 waste zero landfillgold grade certification

General wasteHazardous waste

waste steel waste packagingaluminum scrapwaste plastic

products

waste cartonshousehold garbage

waste ?lter cotton废乳化液PCB板废有机溶剂

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CaseCaseZero landfill management trainingUL 2799 Certified

In response to the call for the construction of "waste-free cities" during the 14th Five-Year Plan period,the Fii established the systematic management of "zero pollution, zero landfill and zero incineration".Up to now, five units have passed UL2799 zero landfill certification, among which Nanning Park hasbecome the first Guangxi enterprise to complete UL2799.UL2799 certification work, on the one hand to help us reduce waste generation, improve wasteconversion rate, save operating costs; On the other hand, it reduces the impact of production andoperation on the environment, improves the environmental awareness of employees, and helps usmonitor suppliers to form a green supply chain, which improves the competitiveness of enterprises.

During the reporting period, we conducted waste zero landfill management training for allsubordinate institutions, and guided all institutions to optimize waste disposal methods, reduceenvironmental impact and improve environmental performance.

SerialNO.

Legal personCertification levelCertification time

Certificatenumber

Shenzhen Fulian Fugui PrecisionIndustry Co., Ltd.

Gold03/15/2022 - 03/15/2023259638-4160

Shenzhen Jingjiang YunchuangTechnology Co., Ltd.

Shenzhen Yuzhan PrecisionTechnology Co., Ltd.

Nanning Fugui Precision IndustrialCo., Ltd.

Platinum08/30/2022 - 08/30/2023289971-4160

Funing Precision Components Co.LtdGold03/29/2022-03/29/2023NA

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Case

The pollutant discharge monitoringrate of key pollutant discharging unitswas 100%

Waste Gas ManagementImportant achievements in 2022

Waste gas activated carbonregeneration center

Future actions and goals2023

2025The pollutant discharge monitoringrate of all public institutions is 100%

The main pollutants emitted from the productionand operation of Fii are nitrogen oxides, sulfuroxides, particulate matter and volatile organiccompounds. By installing online monitoringequipment, we implement dynamic monitoring ofexternal gas concentrations and regularly monitorthe emissions and surrounding air quality tominimize the impact of production and operationon the air environment in the area.During the reporting period, we reduced 29.95tons of VOCs emissions by reforming VOCs wastegas activated carbon, replacing alcohol-basedsolvents with water-based solvents and othermeasures.

Regeneration of activated carbon desorption for VOCs waste gas

In order to reduce the operation cost of waste gas treatment facilities, we invested 1.5 million yuan to build a waste activated carbon recycling center inJiyuan Park. The process of "thermal desorption + exhaust combustion waste heat recycling" is used to recycle and utilize the self-produced waste activatedcarbon. The carbon recycling and disposal capacity is about 600ton/age, and during the trial operation period (September 2022 - January 2023), A total of

41.12 tons of waste activated carbon is used for disposal, which is estimated to save 1,326,620 yuan per year.

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Responsible procurement

force practitioner

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practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

工业富联化学物质管控清单

REACH XVII

SVHCREACH

PoPsRoHSTSCA

Red Phosphorus

VOCsCA pro??

PAHCon?ict Mineral

Chemical Management

Important achievements in 2022

化学品管理政策

未来行动及目标

2023

2025

Chemical control Lis

Expanding Disclosure to the World andDeveloping Chemical Control Guidelines

Disclose the no-limit control replacementplan, cooperate with the CSR reportdisclosure time and process

Fii aims to reduce the associated environmentalimpact of business activities to zero. From thedesign, procurement, manufacture, sale, end useand disposal of products throughout the life cycle,the use of chemical substances to promote thewhole-process management, to minimize the risk ofchemical substances that have negative effects onhuman health and the environment.In order to manage the chemical substancescontained in products, materials and all auxiliarymaterials in the manufacturing process, Fii has setup an EHS management committee and a chemicalcompliance promotion team, which is responsiblefor promoting the chemical risk identification,hazard prevention, emergency preventionmeasures and replacement plan. The secondedition of the Chemical Management Policy,released in August 2022, takes "establishing andimplementing a chemical lifecycle managementmechanism higher than the requirements of laws,standards and specifications" as the chemicalmanagement policy, requiring enterprises, theirsuppliers and customers to jointly develop anduse green chemicals in order to minimize, reduceor control the impact of chemicals on humanhealth and the environment. Covers all productsand services of Fii.

For restricted/hazardous substances, we establish and timely update the Chemical Substances ControlList, organize all units to identify existing substances, and regularly disclose management information.For the chemicals included in the list of restricted and monitored substances, we have formulated a replacement plan,which prohibits all units from re-introducing the replaced substances into any link of production or non-production.For all substances included in the REACH and SVHC lists, we will be included in the replacementprogramme and phasing out the replacement.Chemical management standard

According to local environmental laws and regulations, industry standards and requirements of relevant parties, andinternational conventions such as RoHS, REACH, PoPs, TSCA, CA Pro65 and Industrial Criteria, Fii has completed thestandard evaluation of chemicals used in all products, services and activities of the company. Respond to stakeholderconcerns by proactively disclosing chemical use.

Chemical Replacement Schedulefor 2022

The duration of occupational diseasecaused by chemical exposure remained 0

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Fii has a complete chemical design, development and use process specification, and evaluates theprohibited chemical content and technical reliability of the newly imported products, spare parts andmaterials according to the "Chemical/Material Management Specification"; And in the design specification,drawings record the restriction requirements of related chemical substances, as the technical evaluationindex. Relevant hazardous substance test reports (RoHS, REACH test reports, MSDS) and specific chemicalsubstance compliance statements, etc., as important data for evaluation and effectively kept and sharedamong functional departments for reference.At the same time, the chemical compliance promotion Team of Fii will also carry out potential environmentalprotection risk assessment on the use of chemicals based on international conventions, national standards,occupational Disease Prevention law and Chemical Substance Control List, so as to exclude the harm ofchemicals such as carcinogenic, germ cell mutagenesis or reproductive toxicity on human occupationalhealth and safety, as well as the harm of persistent, bioaccumulative and toxic substances on aquaticenvironment. In addition, substitution or reduction plans are made for prohibited and restricted chemicalsin the Chemical Substances Control List to continuously reduce chemical safety risks.

Chemical design and development (evaluation)

In order to reduce the environmental load, Fii, together with its partners and relevant parties, continuesto carry out green procurement and implement the following activities, aiming to provide consumers withenvironment-friendly products and realize the sustainable development of the enterprise.

Green procurement of chemicals (access)

Actively use products, components, materials and chemicals with low environmental load(green purchasing)Take the initiative to disclose information (through the active disclosure of chemicalsubstance use information, promote the promotion of green environmental protection)Waste reduction, promotion of reuse and recycling (3R)

In order to promote the occupational health and environmental impact of high-risk chemicals in thesupply chain, we have identified a high-risk chemical supplier. We plan to achieve 43% of the occupationalhealth and safety system ISO45001 certification rate in 2023, 70% by the end of 2025, and 90% by theend of 2030.

According to the process specifications of Fii Chemicals/Substances Management and Fii HazardousChemicals Management, we require suppliers to provide relevant compliance data, and conductcompliance assessment on the content of chemical substances involved in the materials and componentsprovided by them according to the Development Table of Components or Components of EnvironmentalManagement Substances. Only compliant chemicals can be used.

According to laws and regulations, national and industrial standards, Fii formulates chemical substance controlstandards and procedures conforming to its own activities, conducts hazard risk assessment on the chemicalsubstance content of selected chemicals through Fii Chemical/Material Management Standard and ChemicalSubstance Control List, and formulates appropriate prevention and control measures, so as to achieve hierarchicalmanagement and control objectives.Develop and implement risk control measures by prioritizing elimination/replacement, engineering controland management control, and provide employees with work-related, properly maintained personal protectiveequipment and guide their proper use. At the same time, comply with laws and regulations and customerrequirements to effectively manage chemical substances, and prevent the use of prohibited substances, mixing andpollution.Implementation of EHS supervision and management of all kinds of hazardous chemicals: procurement -transportation - storage - use - waste - emergency disposal. Design, storage, use and waste disposal units in thewhole process of management to fully consider its life cycle, and comply with the closed-loop management principle.

Chemical process Management (use, storage and disposal)

In strict accordance with the product design management specification and shipping managementrelated procedures, Fii shall confirm that the components and materials of the products conform to theList of Chemical Substances Control and Control according to the shipment inspection items or specificrequirements of customers, and the qualified products shall post the environmental protection qualifiedlabels or add the required test reports and compliance statements. Each product batch can be quicklytraced, disclosed and transmitted through the production process, material entry and exit records,production date, etc.

Product delivery Management (chemical validation)

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Change management

In accordance with the Management of Change Procedure (MOC), the change department shall submit an application,and the responsible department shall assess the technical reliability of the products, parts and materials and theinformation of the chemical substances contained in them in accordance with the Chemical Substances Control Listbefore they can be included in the use targets, and the results of the change assessment shall be recorded in writing andkept. For newly introduced chemical processes, we will refer to the Fii Chemical / Substance Management Guidelines.

Fii 2023 chemical replacement program

We continuously report on the use of specific substances in any manufacturing process used formanufacturing and product components or materials, and prioritize chemicals for their phase-out frommanufacturing processes in order to work effectively with their supply chain.Note: The chemical replacement schedule is an annual continuous plan, which is voluntarily disclosed by Fii every year basedon regulations, industry standards and risk levels. It is used as the judgment basis for the introduction of new chemicals and theexisting chemical replacement plan. With the annual statistical basis, the annual replacement performance will be disclosed in theCSR report of the next year.

Innovative design and development of chemicalsFii is highly concerned about the impact of chemicals on environmental load and occupational health in products, salesand services. In the source design, we give priority to non-toxic, easily degradable, recyclable materials, etc., throughoptimizing process design, improving production equipment, improving detection means and other measures toreduce waste and pollutant emissions, reduce potential environmental pollution risks.

Specificsubstances

REACH SVHC Candidate ListVolatile Organic Compounds (VOC)added phosphorous flame retardants

polyvinyl chloride (PVC)

VOCs source substitution

We continue to phase out high volatile organic solvents used in the production process (such as: paints,cleaners, inks, adhesives, mold release agents, rust removers, etc.) and replace them with: water-based,plant-based, modified and biodegradable solvents with low VOCs, thus reducing VOCs generation at thesource.

Process control

We strengthen the confinement management of equipment and places to reduce VOCs disorganizedemissions; promote the use of advanced production processes, encourage new compact coating productionlines, the use of high solids coatings, water-based coatings instead of traditional solvent-based coatings,promote the application of powder coatings in the field of commercial vehicles, promote electrostaticspraying and other efficient coating processes.

End-end control

The exhaust gas from each process link is treated by the process of concentration combined withcombustion method after filtration, and the drying exhaust gas is treated by direct combustion method afterfiltration; the quality management system is developed to assess the risk level of raw and auxiliary materials,semi-finished products and finished products of VOCs, and a scientific and efficient testing program isdeveloped to ensure compliance with the relevant national standards.

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Soil and groundwater monitoringmore than 5 times

At least 4 thematic missionsSoil and groundwater monitoringmore than 2 times

Ecological ProtectionImportant achievements in 2022

Produce the BiodiversityCommitment and Statement

Issue the Biodiversity Commitmentand Statement

Future actions and goals

2023

2025

Based on the relevant requirements of the United Nations SustainableDevelopment Goals (UNSDGs), the Convention on Biological Diversity (CBD),the construction of ecological civilization and the concept of total life cyclemanagement, Fii has established the concept of biodiversity conservation andactively improved the comprehensive management of ecological environment.

We recognize and support the three objectives of the Convention on BiologicalDiversity (CBD): conservation of biodiversity, sustainable use of biodiversity andfair and equitable sharing of benefits arising from the use of genetic resources,and plan to release the Biodiversity Commitment and Statement in the nearfuture to practice our commitment to corporate green development.

Planningimplementation

Strategy makingOperation monitoring

Develop and implement sustainablesite maintenance plans for existingoperating parks

Business development

Site soil/groundwater is monitored byregular inventory

Develop and focus on biodiversitystrategiesOrganise publicity and educationactivities on animal, plant andecological environmental protection

The site selection criteria for new parksinclude biodiversity as an importantmandatory indicator for considerationand evaluation

Implement biodiversity management in all countries and regions where Fiiconducts production activitiesIncorporate biodiversity conservation as a mandatory requirement in thecompany's supply chain managementRaise awareness and focus on biodiversity conservation across the value chainSynergistic management of biodiversity, circular economy and climate changeissues

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Before the construction of the parks, we carry out environmental impact assessment according to the laws and regulations of thecountries (regions) where they are located, assess the possible adverse impacts and risks on flora, fauna and ecological environmentcaused by the operation activities, and formulate corresponding improvement measures to reduce or eliminate the adverse impacts on

the environment as far as possible. Based on this, the sites of all the operation parks of Fii are far away from the special protection targetssuch as scenic spots, nature reserves and cultural heritage, and not within the scope of the ecological protection red line. The pollutantswill be discharged in compliance after reaching the standard, which will not cause adverse impact on the local ecological environment.Lankao Tourism Factory

Relying on the red regional characteristics of Lankao, Fii introduces the new business model of "tourism+science and technology" and the concept of "factory + ecology = symbiosis". It drives tourism throughindustry and promotes industry through tourism, thus creating the brand of Lankao tourism factory.Lankao Factory takes ecological function as the core, embellishes landscape vein and regional function,and realizes harmonious symbiosis between man and nature by means of modern landscape pattern.

Happiness forest farm

Soil improvement has been carried out on the wasteland reserved for the original factory. In termsof afforestation, tree species have been selected in consideration of species diversity. More than 70green varieties have been planted, achieving a green coverage rate of 43%. Every year on Arbor Day inHappiness Forest Farm planting crabapple trees and red photinia ball and other tree species, when theApril flowers, a piece of red buds also echoes the characteristics of Lankao red region.

We have set up six functional areas in Kaixin Farm, where we can not only appreciate flowers and growvegetables, but also feed animals and pick up melons and fruits. Employees experience planting activities intheir spare time to cultivate their sentiments and enhance the concept of biodiversity conservation. In thefuture, a farming museum is planned to be set up in the park. Combining with local cultural characteristics,the park will let employees know the history of Lankao people's efforts to deal with sandstorms,waterlogging, salt and alkali, carry forward the hard work spirit of Secretary Jiao Yulu, and provide a regularscience popularization and education place for enhancing the awareness of biodiversity protection.

Happy farm six functional areas

Flower cultivation areaFruit areaMicrowave landscape area

Pastoral areaDovecote interactive areaFarm growing area

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Sustainable supply chainDisputed purchases

Responsible procurementforce practitioner

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Sustainable supply chainSustainable supply chain management systemand policy

A good sustainable supply chain management system helps companies achieve sustainable development goalsat the strategic level by promoting economic benefits while also taking into account social, environmental, ethicaland governance interests and meeting the needs of consumers and investors for social responsibility. The GreenSupply Chain Sustainability Policy issued by the company’s Global Procurement Headquarters encourages supplychain companies to improve transparency, promote environmental protection and social responsibility, and takea series of measures to ensure the compliance of Fii itself and its suppliers, and the policy covers all supplierswho have transactions with Fii and its various subordinate entities.

As global technology and economic integration grows, so does the importance of large multinational enterprisesin the global supply chain business environment. The uncertainty that can arise at any time has changed thestructure of traditional supply chains, impacting business operations and growth in many ways and placing greaterdemands on the stability of supply chain business operations. This, coupled with the increasingly sophisticateddisclosure requirements of international codes of responsible business conduct, including information disclosure,environmental protection, labor relations and human rights, has convinced Fii of the critical value of building moreresilient and sustainable supply chain strategies. In response to these guiding principles, we supplemented theSupplier Social and Environmental Responsibility (SER) management system with subdivided topics, expanded thesupply chain risk identification and evaluation dimensions, and added responsible procurement requirementson the basis of 2021, so as to comprehensively promote the construction of green supply chain from a holisticperspective and realize the strategic vision of sustainable supply chain.

Carbon Reduction and Waste Reduction Science and Environmental Protection

Promote suppliers to regularly quantify greenhouse gas emissions, set reduction targets, adoptenergy-saving and carbon-reducing measures, reduce greenhouse gas emissions, and achievecarbon neutrality;Promote suppliers’ waste management compliance, and continuously improve the wasteconversion rate by implementing the “reduce, reuse, recycle” principle to achieve zero waste tolandfill;Monitor suppliers’ environmental management compliance in manufacturing processes to preventenvironmental pollution.

Data platform to store the best and eliminate the worst

Develop green management performance evaluation standards for suppliers, implement greenmanagement performance assessment for suppliers through the management platform on aregular basis, and use it as the basis for selecting key suppliers.

Green compliance social responsibility

Not to accept products that contain chemical substances controlled by each country orregion’s green product-related regulations, and to promote the improvement of green productmanagement capabilities in the supply chain, reduce the use of harmful chemical substances inproducts, and achieve full substance declaration of products;Not to accept conflict areas originating from the DRC or neighboring countries and other disputedminerals affected by conflict, and to establish a conflict-free supply chain;Monitor suppliers’ compliance with the company’s social and environmental responsibility conductmanual, strictly prohibit any human rights violations, and ensure health and safety in the workplace

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Supply chain risk assessment

Due to the complex interactions between multiple parties involved in the supply chain, including climate change,natural disasters, political stability, legal changes, and other factors, resulting in negative outcomes such assupply delays, quality issues, and price fluctuations, in order to identify, evaluate, and manage potential risksin the supply chain, We have developed internal documents such as the Supplier Quality Risk Assessment andManagement Operation Specification, Supplier SER (Social and Environmental Responsibility) Risk Assessmentand Management Measures, and Supplier Green Product Risk Level Identification and Management OperationSpecification. By identifying key suppliers, identifying specific risks, assessing risk priorities, and developingcorresponding management plans, we adopt targeted strategies to ensure the sustainability and efficiency of thesupply chain.Supplier classification management

Critical suppliers:Suppliers whose goods, materials, and services (including intellectual property/patents) have a significant impact on a company’s competitive advantage, market success,sourcing, or production. Critical suppliers include high-volume suppliers, critical componentsuppliers, and irreplaceable suppliers.。Tier 1 suppliers:Suppliers that provide goods, materials or services (including intellectual

property/patents) directly to the company.Non-Tier 1 suppliers:Suppliers that provide products and services to suppliers at the next levelof the supply chain (Tier 2 suppliers and above).High risk suppliers:Suppliers that have a high potential to adversely impact the organization dueto social, environmental/ or economic misconduct.A highly resilient supply chain often requires connections to a large number of suppliers and manufacturers. Adoptinga policy of local sourcing helps companies understand the sources and transportation routes of components, whichwill reduce transportation costs, improve control and enhance transparency, and promote the economic developmentof the company’s location and bring more social benefits to the local community. Recognizing the vulnerability ofglobalization of supply chains. Fii has adopted the priority principle of localization of employees and supply chains toavoid the risk of supply chain disruption on the one hand, and to enhance local economic benefits on the other hand,so as to achieve the overall development of stable corporate operations and social responsibility.

Supplier risk management measures

Supply chain risk assessment is a very important part of supply chain management, which is of great significancefor enterprises to achieve stability, sustainability, and competitiveness of the supply chain. In the initial stageof supplier admission, we require all suppliers to sign the Environmental Protection and Social ResponsibilityCommitment Letter, fill out the Supplier Basic Information Card, and assume human rights, legal, environmental,and social responsibilities. The requirements include but are not limited to:

Comply with the EU RoHS Directive, EU REACH regulations, California Proposition 65 and otherchemical use guidelines, establish a control system for hazardous substances in electronic andelectrical products, and pass the QC 080000 management system certification;Comply with the requirements of the Responsible Business Alliance Code of Conduct (RBA), complywith local labor, health and safety, environmental protection, business ethics and other regulatoryrequirements, establish an environmental and occupational health management system, and passthe ISO 14001 and ISO 45001 certification;Commitment to not accepting/not using conflict minerals from the main Republic of Congo andsurrounding countries and regions, establishing management systems in accordance with the OECDDue Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, and using conflict-free smelters certified through the Responsible Minerals Initiative (RMI)or equivalent;Comply with the energy efficiency and emissions reduction policies and regulations of the company’slocation and commit to establish an ISO 14064 organization-level carbon management system anddisclose carbon inventory and emissions reduction information annually.

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SER

SER

策略采购/BU采购部门供应商SER管理部门供应商

要求提供

《供应商SER自我评估问卷》

第一阶段风险评估

第二阶段风险评估

供应商信息

向供应商发送

《供应商SER调查表》

填写

《供应商SER自我评估问卷》

填写

《供应商SER调查表》

收集《供应商基本资料卡》新增或变更基本资料的供应商

风险判定

高·中·低风险

风险判定

高·中·低风险

自我评估问卷是否填写合格

SER调查表是否填写合格

?.要求提供《供应商自我评估问卷》中所有识别缺失的改善计划；?.列入稽核计划，推动改善，原则每?年至少?次稽核；?.纳入Scorecard管理系统；?.优先邀请参加供应商大会。?.要求提供《供应商自我评估问卷》中所有识别缺失的改善计划；?.至少进行?次稽核；?.关键供应商纳入Scorecard管理系统。原则上无需进行稽核，除客户或特殊管理/专案要求外。

原则上只须监控是否发生SER异常事件。

中/高

否是

否是

高中低

低

In accordance with the requirements of the Responsible Business Alliance Code of Conduct (RBA 7.0), we haveupdated the Supplier Code of Conduct on Social and Environmental Responsibility to ensure that all suppliersin the supply chain provide a safe working environment for their employees, respect human rights, and operatein an environmentally responsible and ethical manner, which applies to all suppliers with whom Foxconn hasdealings. During the audit process, we prohibit suppliers from having the following “zero tolerance” items:

For partners already included in the supply chain, the company controls and reduces risks through specializedmanagement and supervision methods such as evaluating and eliminating high-risk suppliers, conductingrisk analysis, and establishing warning mechanisms, based on the internal supplier social and environmentalresponsibility (SER) management system and scorecard supplier performance management system, promote thesustainability of corporate and supply chain environmental and social responsibility performance.SER site assessment report, as the main mechanism of supply chain management, regularly discloses suppliers’basic information, SER strengths and weaknesses, audit status, improvement status, integrity and complianceand final assessment scores through on-site audits, with assessment items including five major categories suchas labor, environment and ethics, more than 40 sub-topics, and more than 150 specific evaluation indicators,which will eventually form a Corrective Action Report (CAR) and require suppliers to complete rectification withina specified period.

zero tolerance

Employment of forced labor/prison workers;

Discharge of untreated toxic or hazardous substances ormaterials;Existence of health and safety problems that would immediatelyendanger the lives of employees or cause serious injury;Providing false information to the company;

Employment of child labor

Retaliation against employees who provide truthfulinformation to auditors.

Supplier SER risk assessment and control process

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管理应用SaaS分数计算PaaS数据采集LaaS

绩效趋势绩效对比绩效排名

绩效仪表板

绩差预警改善推动PSL/RSL

管理推动

Total得分Q得分

*权重

C得分

*权重

D得分

*权重

S得分

*权重

GP得分

*权重

GHG得分

*权重

SER得分

*权重

品质绩效

数据

交货绩效

数据

GP绩效

数据

GHG绩效

数据

SER绩效

数据

++++++

逻辑运算（依评分标准）价格与交易

条款数据

技术支持绩效数据

Case

Scorecard, as a digital system for supply chain management, has 7 major evaluation indicators, namelyquality, price, supply chain support, technical support, green products, energy saving and social responsibility.Administrators can adjust the scoring weight based on “applicable/not applicable”, and some data will beautomatically generated by the corresponding system. The ESG performance details query interface is open forquick screening and reference at the group level.

Scorecard platform architecture

The company continues to promote multi-level and multi-dimensional responsibility audits. For suppliers whoperform differently in SER and Scorecard, we have developed targeted audit standards and conducted auditswith different frequencies and focuses for different types of suppliers. High risk suppliers will undergo on-siteaudits once a year, while medium and low risk suppliers will undergo on-site audits every three years, or the auditcontent and frequency will be determined according to customer requirements. During the reporting period, weconducted 55 on-site audits of supplier green product management, with an average pass rate of 93%; Promote9 suppliers to register IPE platform accounts, and a total of 166 suppliers have IPE platform accounts; A total of37 suppliers have violation records on the IPE website, promoting 33 suppliers to conduct a GCA audit; ≥ 90% ofkey suppliers have an audit coverage rate every three years.

Sunshine procurementWe are committed to improving the transparency of the entire supply chain cycle, including the production process,procurement bidding, logistics management, and supply relationships, to create a fair and open procurement atmosphere forthe supply chain and provide consumers with stronger brand trust. The company’s internal Integrity Supervision Department,set up by the Central Legal Department, coordinates the integrity supervision work, including the establishment of theprocurement process and work system for malpractice prevention, strengthening supplier management, adopting competitiveopen bidding and negotiation, strictly enforcing the internal purchasing budget and approval authority system, strengtheningprocurement supervision and internal auditing, and opening up various corruption reporting channels, in order to superviseand prevent non-compliance occurring in the procurement process. All suppliers are required to sign integrity agreementssuch as the Supplier’s Active Voice Report and Vendor’s Commitment before formal performance, and regularly participate inthe integrity training organized by the company. During the reporting period, there was no supply chain corruption incidentin Fii, and through the continuous ISO 37001 anti-bribery management system certification, 100% of suppliers signed thecommercial bribery risk assessment report.

Supplier integrity training conference of Purchasing General Office

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Promoting green transformation of supply chain

Global climate change is becoming more and more serious, and the environmental and social risks in the supplychain have attracted widespread attention from governing bodies and the public, and with the increasing awarenessof environmental protection among all people, the international regulations and restrictions on carbon emissions,energy consumption and other environmental indicators will become increasingly strict. Based on internal verificationforms such as Supplier Environmental Social Responsibility Checklist, Supplier Green Product Management SystemAssessment Form and Supplier Green Product Risk Rating Assessment Form, we obtain the real situation of suppliersin environmental and social governance and assist them to complete green transformation through preferentialpolicies, including building carbon emission management system, zero waste to landfill management system, digitalmanagement system, carbon neutral target, etc., to actively assume social responsibility for sustainable development.Take carbon emission classification management system as an example, according to the carbon emission or electricityconsumption of suppliers, suppliers are subject to different levels of control:

Manufacturers with carbon emissions are less than 3,000t of CO

e shall manage themselves andvoluntarily disclose carbon to relevant parties.Manufacturers with carbon emissions more than 3000t of CO

e shall be required to do annual carboninventory and disclose the data in the supplier carbon management system.Manufacturers with carbon emissions more than 5000t of CO

e will be included in emission reductionmanagement, set emission reduction targets annually according to emission reduction managementrequirements, and implement energy saving and emission reduction management programs.Combine carbon emissions, procurement amount, and procurement strategy to select some keysuppliers, and evaluate them for carbon neutrality, and promote the use of 100% renewable energyto produce products.During the reporting period, each branch of the company organized over 17 supplier social responsibility trainingsessions, including online and offline training, seminars, supplier conferences, etc. The training included IPE(Institute of Public&Environmental Affairs) themed training, supplier environmental and social behavior codelearning, and promotion of new standards for conflict mineral management. A total of more than 383 suppliersunder the branch participated in the training, among them, there are over 183 key suppliers. 10 key suppliershave obtained zero landfill certification for waste; 75 key suppliers have achieved RoHS+halogen-free declaration;12 key suppliers promise to use 100% renewable energy; 100% of suppliers implement ESG projects.

Green supply chain policy and requirements for suppliers

In March 2022, the company held the “Green Supply Sustainable Development” supplier orientationmeeting to promote the green supply policy and requirements, and explain the supply chain carbonneutral, zero waste, green product management evaluation standards, etc., a total of 64 key suppliersof electronics 248 representatives registered to attend the meeting, the meeting connected to 161relevant personnel access.

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The company’s green product management performanceevaluation and quality improvement supplier briefing

The company attaches great importance to supply chain ESG management and evaluates theperformance of green product management for suppliers from five dimensions: system management,testing management, process management, platform management, and upstream management.In June 2022, a supply chain online briefing will be held to explain the progress of evaluation andthe promotion of green quality and efficiency improvement in the supply chain. 9 green productmanagement departments under 10 business groups of the group and 288 suppliers jointlyparticipated in the meeting.

Supplier carbon reduction coaching conferenceIn December 2022, the company pledged to reach its net-zero emissions target by 2050, disclosecarbon emissions information annually in accordance with TCFD (Task Force on Climate-RelatedFinancial Disclosures), strengthen climate governance, and take action on its supply chain. Theconference shared excellent carbon reduction cases with a total of 226 parties connected toparticipate.

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Disputed purchases

Management policyFii follows the Code of Conduct on Corporate Social and Environmental Responsibility for Suppliers and does notaccept minerals related to conflict zones and other high-risk areas (where there is conflict, the worst forms ofchild labor employment, forced labor and human trafficking, serious human rights violations, and other objectivelyjudged high-risk activities) originating from the Democratic Republic of Congo and its neighboring countries.The company has always focused on social responsibility, and to achieve this goal, we require our supply chaincompanies to

Due to the phenomenon of illegal looting and indiscriminate mining of mineral resources in some countries andregions, which will have a great impact on the local environment and social stability and breed illegal and criminalacts, more and more international organizations and companies are constantly strengthening the managementof conflict minerals, including traceability certification, procurement compliance, anti-corruption, etc. We do notpurchase raw materials directly from smelters or refineries in conflict areas, but may purchase componentscontaining these minerals. In order to improve our corporate social responsibility and meet our customers’requirements for responsible mineral procurement management, we have formulated internal managementdocuments such as the Supplier Responsible Mineral Procurement Management Code, issued the ResponsibleProcurement Statement, required suppliers to sign the Environmental and Social Responsibility Commitment,and adopted the We identify and assess the risks of tungsten, tin, tantalum, gold, cobalt, mica and other mineralsthrough an audit process such as Conflict Minerals Due Diligence Report and Supplier Responsible Mineral RiskAssessment Form, which include Conflict Minerals Reporting Template (CMRT), Cobalt Reporting Template (CRT),Mica Reporting Template (MRT), etc.

Fulfilling social and environmental responsibilities;Ensure that parts and products supplied to companies are free of conflict minerals;Establish a responsible minerals management system with reference to the OECD (Organisationfor Economic Co-operation and Development) Due Diligence Guidance for Responsible SupplyChains of Minerals from Conflict-Affected and High-Risk Areas;Trace the source of relevant minerals involved in the supply chain, regularly use CMRT/CRT/MRT,etc. to report the use status and source information of relevant minerals in the delivered productsto the company, and ensure the use of smelters/refinery that comply with the RMI (ResponsibleMinerals Initiative) responsible for the Responsible Minerals Assurance Process (RMAP);Makes the same request to upstream manufacturers.

Fii continues to practice the concept of sustainable development, and in order to meet the requirements ofrelated parties on the management of conflict minerals, the internal Supplier Responsible Mineral ProcurementManagement Code is used as a platform to clarify the responsibilities of the participating functional departments,starting from the four aspects of supplier access, supplier due diligence management, risk assessment andimprovement promotion to reduce the risk of supply chain conflict mineral management and avoid the impact onthe company and its customers.

ForewordPioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

Case

法务部门采购部门供应商管理部门供应商

要求签署ESU

供应商分级分类

尽责调查

供应商导入

ESU签署

回复CMRT,CRT等

实施改善

教育训练

供应商绩效评核管理作业规范

结案

审核合格

CMRT,CRT等审核

改善验证

是否评估为“高、中”风险

重点供应商

NY

NY

NYNY

NY

95%

96%

95%

对供应商发出冲突矿产调查问卷(CMRT)数量1,604

对供应商发出冲突矿产问卷并完成调查的数量1,531

对供应商发出云母管理调查数量

1,019

对供应商发出云母管理调查并完成调查的数量

对供应商发出钴管理调查数量

1,172

对供应商发出钴管理调查并完成调查的数量

1,123

Supplier responsible mineral procurement management code flowchart

Suppliers assessed as high or medium risk should reduce their risk level by signing ESU (Environmental Protection andSocial Responsibility Undertakings), completing CMRT, CRT, MRT and other evaluation reports, and developing publicresponsible mineral policies. The performance evaluation management of responsible mineral procurement belongsto the SER management module, which is managed online through the group’s conflict mineral management systemplatform. The platform has functions such as CMRT automatic investigation, review, and summary, achieving real-time data query and traceability requirements, making it easy for supply chain enterprises to integrate and managedata. During the reporting period, 100% of supply chain enterprises did not use illegal conflict minerals.

ForewordPioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

Corporate governanceEconomic performanceRisk and opportunity managementTax strategyInformation securityBusiness ethics

Sustainable governancepractitioner

ForewordPioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

股东大会

董事会

总经理

提名委员会薪酬与考核委员会战略决策委员会审计委员会

工会/党委监事会

董事会办公室

富士康工业互联网股份有限公司章程董事会秘书工作制度关联交易管理制度监事会议事规则独立董事工作制度

股东大会议事规则董事会议事规则

Corporate governance

In strict accordance with the Company Law of the People’s Republic of China, the Securities Law of the People’s Republic ofChina, the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange, the Articles of Association of the Companyand other internal and external institutional norms, Fii has established a general meeting of shareholders, a board of directors,a supervisory board and a management board (the “Three Boards and One Level”), and promulgated corresponding rules ofprocedure and working systems. We clarify the criteria for the selection and appointment of members of the Board of Directorsand the duties and authority of directors and supervisors, insist on the separation of execution and supervision, ensure effectivechecks and balances, and promote scientific decision-making with a sound and modernized corporate governance structure.During the reporting period, we completed the revision of the Rules of Procedure of the General Meeting of Shareholders andthe Rules of Procedure of the Board of Directors, taking into account the actual situation of the company.

Fii recognizes that transparent and efficient corporate governance is the foundation for consolidating theorganization’s development achievements and realizing its long-term development strategy. To this end,we have always insisted on transparent operations, sound governance, protection of shareholders’ rightsand interests, and responsiveness to stakeholders’ demands. We are concerned about the impact of ouroperations on society, the environment and people, and we plan for comprehensive risk management,continuously refine our governance and risk control systems, adjust our industrial layout in a timely manner,and improve our ability to sustain development.In the future, Fii will continue to adhere to the governance direction of implementing integrity and compliance,continuously improve the supervision of business ethics issues at the board level, conduct regular rotationalaudits, standardize the handling of whistleblowing, strengthen the independence of the board of directors,optimize the internal communication mechanism of the board of directors, normalize the business refinementtraining of senior management, and improve the effectiveness of the board of directors and ESG leadership.Progressin

2022

·Independent directors accounted for 33.3%·100% of independent directors attended the board of directors’ meetings and shareholders’ meetings inperson, with no absenteeism or proxy attendance

Enhancing board independence

·17.7% of female directors·Members have academic background and practical experience in mechanical engineering, electricalengineering, accounting, business administration, etc.

Enhancing board diversity

·Total 123 hours of training for directors and supervisors

Enhancing the special quality and capability of the governance team

·Completed risk radar mapping·Completed risk identification of central functional units, proposed important risk control measures, andtracked 283 control measures in total

Promote the construction of risk management system

ForewordPioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

Shareholders

meeting

2022 Tri-Council performance

Board ofdirectors

Supervisory

board

Convene(times)

Deliberate andapprove(terms)

Convene(times)

Deliberate andapprove(terms)

Convene(times)

Deliberate andapprove(terms)

The shareholders’ meeting is the power organ of the company and the board of directors is responsible to theshareholders’ meeting. Fii pays attention to the diversity of identity of senior management such as directors,supervisors and general managers and the richness and complementarity of industry and academic experiences, andthe selection of personnel is in compliance with the Code of Governance for Listed Companies, the Guidelines on theArticles of Association of Listed Companies and the Articles of Association of the Company.The Board of Directors has set up four functional committees, namely the Strategic Decision-making Committee, theAudit Committee, the Nomination Committee and the Remuneration and Evaluation Committee, which are responsiblefor managing the implementation and promotion of each special affairs. During the reporting period, the specialcommittees diligently performed their duties and provided consultation and advice to the Board of Directors in makingdecisions, which is a key link in promoting the sustainable and stable development of the Company.

Selects and hires generalmanager, secretary ofthe board of directors,chief financial officer andother senior managementpersonnel, responsiblefor resolutions on majorcorporate matters, formulatesbasic management systemsand plays a guiding role.

Check the financial status ofthe company governance,supervise the job conductof directors and seniormanagement, and safeguardthe legitimate rights andinterests of shareholders.Meeting frequency:

at least 1 time every 6 months

To study the company’sdemand for directors andsenior management, assist inimproving the selection criteriaand procedures, proposecandidates for the boardof directors, and promotediversity of board members.

Pay attention to and studyand judge the macroeconomicsituation, national policiesand industry trends, makesuggestions on the company’sdevelopment planningand major investmentdecisions, etc., and promotethe sustainable and stabledevelopment of the company’smain business.

Board of DirectorsSupervisory BoardAudit Committee

Strategic Decision

Committee

To improve the appraisaland remuneration guidelinesregarding directors and seniormanagement, review the leveland amount of remuneration,and continue to promote theCompany’s 2019 Stock Optionand Restricted Stock IncentivePlan.

Remuneration andEvaluation Committee

Supervised the formulationand implementation ofthe Company’s internalaudit system, reviewed theCompany’s financial systemand internal control system,and discussed matters suchas periodic reports, auditplans, and routine connectedtransactions.

Audit Committee

ForewordPioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

执行董事独立董事

66.7%

33.3%

Title

Directorname

Gender

Director’s tenure

Academic background Industry experience0-3 years3-6 years

ChairmanLi JunqiMale●PhD in mechanical engineeringGeneralmanager

ZhengHongmeng

Male●Bachelor of electronic engineering

DirectorZhou TaiyuMale●

PhD in electrical and computer engineering, chief

technology officer

DirectorLiu JunjieMale●

General manager of high-end precision mechanical

parts product group

Independent

director

Xue JianFemale●

Doctor of accounting, professor of school ofeconomics and management, Tsinghua University

Independent

director

SunZhongliang

Male●Executive MBA

2022 board members

*Liu Junjie succeeded as the executive director on June 23, 2022, and the original executive director Wang Jianmin resigned on June 2, 2022.Name

Enterpriseoperation

Finance ?Accounting

Compliance·LegalAffairs·InternalControl

Globalization

Technology? R&D

InformationTechnology

Risk

Li Junqi

●●●●●ZhengHongmeng

●●●●●Zhou Taiyu

●●●●●Liu Junjie

●●●●●Xue Jian

●●●●●●●SunZhongliang

●●●●●Hu Guohui

●●●●●●Yang Feifei

●●●●●●ZhangZhanwu

●●●●●●

IndependenceThere are 6 members of the current Board of Directors,including 4 executive directors and 2 independent directors,with independent directors accounting for 33.33%, effectivelyguaranteeing the reasonableness and fairness of the Board’sdecision-making. The Company provides support for theindependent directors to perform their function of independentsupervision and inspection, and the independent directors donot hold shares of the Company in any form.In order to strengthen the professionalism and independenceof the operation of the Board of Directors, the chairmen ofthe Audit Committee, the Nomination Committee and theRemuneration and Evaluation Committee are all independentdirectors, with 66.7% of the members being independentdirectors.

2022 Tri-Council performanceSpecialcommittee

Member name

Meeting situationMeetings in 2022

EntrustedAttendance

Actual attendancerate (%)Auditcommittee

Xue Jian (Chairman)

0100%Sun Zhongliang0100%Li Junqi0100%Nominationcommittee

Sun Zhongliang (Chairman)

0100%Xue Jian0100%Zhou Taiyu0100%Remunerationand appraisal

committee

Sun Zhongliang (Chairman)

0100%Xue Jian0100%Zheng Hongmeng0100%

ForewordPioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

Board Gender StructureMale ChairmanFemale Chairman

83.3%

16.7%

Education Background of Board

master degree and abovebelow master degree

DiversificationThere is one female independent director on the Board of Directors, and the percentage of female directors is 16.7%.The board members come from various fields such as mechanical engineering, electronic engineering, accounting,business administration, etc. They have rich knowledge, skills and experience required to perform their duties, andhave a reasonable professional talent structure, with 85.71% of them having master’s degree or above.

Conflict of interestIn order to regulate connected transactions and avoid conflicts of interest, the Company has formulated theManagement System of Connected Transactions to strictly prohibit directors, supervisors and other seniormanagement from using connected transactions to harm the interests of the Company and its small and medium-sized shareholders, and to ensure that the transactions are conducted in accordance with the principle of fairness andfair and reasonable pricing. When the matters under consideration are of interest to the directors and independentdirectors, the connected directors are required to take the initiative to declare and recuse themselves from voting,and are not allowed to act on behalf of other directors to exercise their rights, so as to reduce the situation where thejudgment or independence is affected by conflict of interest.

Board of Directors performance evaluationWe conduct annual evaluation of the standardization and effectiveness of the Board of Directors, focus onstrengthening the functional positioning of the Board of Directors, improve the top-level system design, andenhance the quality of management building.

Senior management remuneration policyIn accordance with the provisions of the Articles of Association and the Rules of Procedure of the Remunerationand Evaluation Committee, we formulate the Remuneration System for Directors, the Remuneration System forSupervisors and the Remuneration System for Senior Management, which are submitted to the shareholders’ meetingfor consideration and approval, and the Remuneration and Evaluation Committee is responsible for reviewing theperformance of duties and the payment of remuneration of directors and senior management of the Company.For inside directors, we link their remuneration to the economic environment, business conditions and performanceappraisal results in accordance with their management positions in the company. For outside directors (includingindependent directors), we adopt a stipend system, which consists of annual base salary and performance pay.In addition, we recognize that management’s ownership of company stock both mobilizes management initiative,has a positive impact on the organization’s future operating profit, and is beneficial in enhancing stakeholder trustin the organization’s management. For this reason, the company has established a restricted equity incentive planfor directors and senior management, and updates the grant status of each reporting period in the annual reportsimultaneously.

2022 Board Assessment Program Summary

Evaluation

object

All directors (6 people) and all supervisors (3 people)

Evaluationindicators

Normative andeffective

1.Composition and operation of the board of directors

2.Degree of participation in the board of directors’ meetings

3.Implementation of resolutions of the board of directors at the

shareholders’ meeting

4.Operation of the four major committees of the board of directors

5.Risk management of the board of directors

6.Dialogue between the board of directors and internal and external

7.Independent directors perform the duties and protect the rights and

interests of small and medium shareholders

8.Evaluation of the Board of Directors by the Supervisory Committee

ForewordPioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

83.3%

16.7%

83.3%

16.7%

83.3%

16.7%

通信及移动网络设备云计算工业互联网其他业务

2,124.44

2,961.78

19.12

13.16

Economic performance

In recent years, the global weather extremes have frequently ravaged the world, the international competitive map has acceleratedits evolution, and the internal elements of the organization have also been in a state of long-term adjustment. The profoundlychanging internal and external environment has continued to test the industrial resilience and flexible adaptability of Fii.Under the new development pattern, Fii always insists on being based in China and looking at the world, and runs the enterprisewith the attitude of open integration and common construction, thanks to seizing the opportunity of the era of digital economydevelopment, gradually implementing the digital transformation and upgrading strategy, focusing on reshaping the competitiveadvantages of business while consolidating the existing industrial advantages; relying on the production and manufacturingprocess to accumulate new processes, breaking through the technical barriers to form new models and new business modelsby digital strengthening the enterprise In addition, we will reduce the impact on ourselves as much as possible, stabilize the R&D,production and operation of each business group, provide fuller and higher quality employment, consolidate and strengthen theeconomic foundation of the organization, and continue to create long-term value for shareholders and society.Financial performance in 2022

Total operating revenue(Billion)5,118.50

a year-on-year increase of 16.4%

Company operating cash flow(Billion)

153.66

a year-on-year increase of 76.1%

R & D investment(Billion)

115.88

a year-on-year increase of 7.0%

Cloud computing serverNo.

Net profit attributable to parentcompany(Billion)

200.73

a year-on-year increase of 0.3%

Net assets(Billion)

1,289.75

Net profit not attributable toparent company(Billion)

184.10

Total assets(Billion)

2,841.88a year-on-year increase of 6.6%

Cash dividend amount(tax included)(Billion)

109.22

We have shifted from a purelyshareholder interest focus to amulti-stakeholder perspective,focusing not only on our ownfinancial performance andshareholder wealth accumulation,but also on the radiating effect ofour corporate operations on socialbenefits.As a listed company, the protectionof shareholders’ rights and interestsis both our obligation and thecornerstone of our ability to winthe trust of the market. We haveincreased our efforts to rewardour shareholders by formulatinga positive and reasonable profitdistribution plan while ensuring thenormal operation and sustainabledevelopment of the company, and we have been paying cash dividends every year based on our business performance toenhance investor confidence. Since our IPO in 2018, we have paid out $32.3 billion in cash dividends to our shareholders.The company continues to strengthen information disclosure, improve investor relationship management, and protect the rightto information of stakeholders, so that all relevant parties can understand and agree with our business activities. We closelyinteract with investors and maintain long-term effective communication through communication channels such as shareholdermeetings, performance reports, roadshows, telephone conferences, and “SSE E Interaction”. During the reporting period,Industrial Rich Union conducted X roadshows, answered over 300 investor phone calls, responded to 62 questions on the Einteractive platform, and conducted research with 424 institutions. It was awarded an A-level information disclosure evaluationby the Shanghai Stock Exchange from 2021 to 2022. In addition, we have released corporate social responsibility reports for 5consecutive years, disclosing the organization's progress and performance in environmental, social, and governance aspects,and inviting the public to witness the implementation of the sustainable development strategy of Fii.Shareholder returns Unit: RMB

IndexUnit20222021202020192018

Social contributionvalue per share*

Yuan2.482.462.231.972.07

*[Calculation method] Social contribution value per share = earnings per share + (total tax payment + sta? expenses + interest expenses +total public welfare investment - social cost) / total share capital at the end of the period.

ForewordPioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

全球风控与合规管理指导委员会

风控与合规委员会执行工作委员会

中央单位

事业群

富士康工业互联网股份有限公司

董事会

就全面风险管理工作的有效性对董事会负责

管理工作

负责风控与合规专业技术形成和跨部门及事业群的沟通与协调

永续发展委员会审计委员会

最高负责人总经理

最高执行负责人法律与智权处法务长

Risk and opportunity managementRisk management is critical to all business scenarios, it is not a formal and transient activity, but an integral part of ourdaily operations and maintenance. In the face of increasingly complex internal and external development environmentand new types of risks, we place risk management at the core of our organizational development, and constantly thinkabout how to identify and respond to various types of paradox-prone risks and potential crisis challenges, with a viewto improving risk insight, preparing for risk response in advance, achieving our own stability and continuing high-qualitysustainable development.Based on the risks faced by our own operations and the characteristics of our daily operations, we formulate riskmanagement plans in phases, including short-term emerging risk management plans, medium- and long-termstructural risk management plans, and long-term risk culture promotion plans.In 2021, we will start to systematically build our risk management mechanism and undergo an external audit ofrisk management in 2022. Currently, we have completed the four steps of rolling out the structure, risk focus, riskregistration and risk control one after another.

Risk management policyBased on the new development stage, in response to the country’s active implementation of climate strategy, andin line with the company’s need to further promote digital transformation, and with “law, compliance and risk” as theguideline, and studying and applying common international and domestic management concepts, the company hasestablished the Risk & Compliance Management Committee (RCMC) to gradually update the existing risk managementsystem documents such as the Risk Management System and the Fii CSR Significant Event Notification Guidelines. andpropose to introduce Risk Control and Compliance Management Code as the company’s risk management guidelineto identify, manage and deal with economic, social and environmental risks that may be encountered during theorganization’s operation on a rolling basis.

Risk management organizationServed as the Chairman of the Global Risk Control and Compliance Management Steering Committee (hereinafterreferred to as the “Steering Committee”), led the operation of the committee, coordinated the risk managementwork of various business groups with the CSR Committee and Audit Committee, and regularly reported the controlsituation to the board of directors. The Executive Work Committee of the Risk Control and Compliance Committee issubordinate to the Steering Committee, with the Chief Legal Officer of the Legal and Intellectual Property Office servingas the Executive Chairman. It collaborates with the Steering Committee to supervise various business groups at homeand abroad in promoting risk control and compliance work.

ForewordPioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

Risk management process

We build the risk management model by referring to ISO 31000, ISO 37301 and COSO ERM management systemstandards and frameworks, planning eight steps such as risk focus and risk registration, conducting risk physicalexamination of each unit, establishing risk radar, and identifying and assessing major risks. At the same time, we hirea third-party organization to assist in auditing the risk management process, make recommendations and measuresto optimize risk management, output annual risk audit reports, incorporate weak points and deficiencies into the nextyear’s work plan, and refine the subsequent risk management system.In the process of risk focus and risk radar mapping, we extensively collect external risk information and internaloperational data, integrate the advice of external third-party institutions and experts, and consider a numberof significant factors affecting our own operations, prioritize them, and strive to achieve the goal of controllinginherent risks and mitigating residual risks.In 2022, we focused on a total of 45 risk topics through the risk radar chart, including 26 external risks and19 internal risks. Based on a correlation-based enterprise risk model, the CEO finally decided on four majorcorporate risk items. Subsequently, 15 central functional units are required to list their Objective Key Result (OKR)against the risk radar chart and the company’s major risk items, and register them after identification, therebyenhancing transparency and strengthening risk management approaches.During the reporting period, we urged and fully supported 15 central functional units to implement theidentification of risk self-assessment and self-test, and completed the registration of 41 important risks in total.

Risk management process

Risk focus

When conducting risk focusing, we take the following considerations into consideration:

Risk focus0203

Riskregistration

Risk Control

RiskMonitoring

Risk Audit

Risk drill

RiskCommunication

Risk focus

Industryecology

Fii businessobjectivesand strategies

Stakeholderexpectationsand interests

Managementconcerns

Domestic andforeign legalrequirements

Changinginternationaland domesticeventsOccurrenceprobabilityand degreeof harm

Organizational

process

ForewordPioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

资安事件

缺工、离职流动

ESG&碳议题

APCD

?????

??????

???????

????????

?????????

中风险，持续监控高风险，尽快缓解

RCMC is responsible for tracking and controlling the registered risks. The risk scores of each issue are obtained bymultiplying the probability and impact scores. Among them, high-risk/high-concern issues are reported to RCMCsupervisors for special attention, medium-risk issues require special governance by the functional supervisors ofcentral functions, and low-risk issues are managed according to routine procedures. To mitigate risks, we use the5W1H principle and PDCA cycle to improve risk control.Registration riskRisk Control

Risk CategoryImportant risk content

Strategic RisksPolicy changes, macroeconomics, etc.Financial RiskExchange rate changes, cash flow, etc.Operational RiskInformation security, separation flow, etc.Hazard Risk

Environmental protection, industrialsafety events, etc.Compliance Risk

Investment compliance, trade compliance,etc.

2022 High risk Issues and management situationRisk AreasHigh Risk TopicsRisk ScenariosMitigation Measures

Environmental

ESG & CarbonIssues

1.Mismanagement,

which may increaseoperating costs

2.Affects

sustainabledevelopmentperformance

Completed:

·Research new regulations or stakeholderrequirements·Participate in CDP, FTSE Low Carbon TransitionQuestionnaire and other ratings, and discloseclimate strategy, performance and climate-relatedfinancial information to the public·Implemented emission reduction and green powerinvestment plans

Social

Shortage ofwork/separationmobility

1.Insufficient

workforce

2.Insufficient skill

development,which affectsproduct delivery

3.Rising

management costs

Completed:

·Implement employee stock ownership incentiveplan and update welfare programs and contents·Seek government incentives, such as trainingsubsidies, public housing, etc.·Continue to strengthen the employee care andattention mechanism and shorten the employeecomplaint handling cycle·Rationalize the use of dispatch or outsourcing, andprovide skills upgrading and transition training·Conduct salary review according to the price indexand management income.

Governance

InformationSecurity Events

Attacked byDDoS, virus orransomwarethreats

Completed:

·Prepare security management system such asInformation Security Event Notification Mechanismand conduct emergency drills such as phishingemails and ransomware virus·Activate emergency disposal mechanism·Regularly review information security protectionmeasures and simulate the latest attacksTo be followed up:

Deploy network abnormal usage analysis and virusprotection system

ForewordPioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

第?层级税务工作总体目标第?层级五大税务政策第?层级内涵和具体工作

应纳尽纳、应享尽享严格遵循各地税务法规

有效管控税务风险

制定合理的转让定价规则

提高税务信息的透明度制定合法且符合商业实质的税务规划维持正确的账务记录按时且正确申报及缴纳税款纳税凭证开、给、收、保存

···

建立专业团队，与外部顾问协作建立有效的风险防控机制与税务局保持良好沟通

···

符合OECD以及运营所在地区各国家的转让定价规则利润分配与价值创造相匹配不将利润转移至低税率地区

···

满足国际以及所运营地区的法定披露义务

·税务规划必须

合法且符合商业实质制定满足业务需求且有商业实质的投资架构与交易模式不为税务规划设计业务不滥用免税天堂

····

Risk management culture

To meet the challenges posed by various types of prone and high-risk events, we focus on enhancing the risk foresightof all employees and strengthening the innovation and optimization of top-down risk management systems. At thesame time, we encourage employees to participate in a structured feedback process, proactively identify and reportpotential risk factors throughout the organization, eliminate their own risk management blind spots, and strive toresolve risks at the source and prevent the superposition, evolution and escalation of various risk events.We adhere to the principle of centralized risk training and management, and enhance internal attention and sensitivityto risk through strategies such as top-level attention and full participation, creating a culture of organizational riskmanagement to make ourselves safer and our operations more stable.

RCMC member/officer risk awareness,

skills trainingCompliance Awareness Training

for Directors and Supervisors

Practical Exchange

5 sessions3 sessions3 sessionsOver 105 people130 people28 people

210 hours260 hours56 hours

Tax strategy

As a “going global” enterprise, Fii pursues sustainable corporate development and shareholder value, whilestrengthening inter-regional interaction and cooperation through our own production and business practices todrive local economic development. We develop and expand our business globally in a responsible manner, and weunderstand and grasp the detailed tax regulations of the countries and regions where our industries are located in anin-depth and professional manner, and fulfill our tax obligations.Tax strategyWe support a transparent and compliant tax policy. The tax policy has been made public on the company’s officialwebsite after approval by the CEO, so that all stakeholders can easily understand Fii’s management attitude ofestablishing a standardized tax system.

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港澳台中国大陆亚洲其他地区其他

80%

9%6%

5%

Tax Governance

In a globalized economy with a worldwide value chain,Fii is committed to fully complying with all applicabletax laws and regulations, supporting tax policies atboth the Chinese and international levels, promoting itsdevelopment in a predictable and transparent manner,filing all necessary tax returns and disclosing all relevantfacts and circumstances, and paying reasonable taxexpenses to create social value contributions.Fii’s tax governance is under the responsibility of theChief Accounting Officer, who strives to improve taxcertainty by establishing a global system to ensure thatoverseas operating locations are aligned with groupcompanies in tax management and do not use taxhavens for malicious tax avoidance.We have a robust internal tax process. When facedwith major operational decisions involving tax matters,management is required to bring them to the Boardof Directors and conduct a comprehensive tax analysisin collaboration with our in-house professional tax

team, and engage external professional organizationsfor advice when necessary. The tax team activelymanages, reviews and reports on direct and indirecttax changes of each entity and assesses the impactof new tax legislation and policies on Fii. At the sametime, we improve our tax management informationsystem, increase the level of information processingfor tax administration, and strive to maintain goodcommunication with tax authorities to establish andmaintain an equal, harmonious and stable relationship.Given the complexity and cross-regional nature ofFii’s business, we are inevitably exposed to the risk ofdouble taxation. By strengthening fiscal and tax policyresearch, supervising tax management of sub-levelcompanies, implementing dynamic monitoring of taxrisks and other risk control measures, we can avoidunnecessary internal or external disputes and achieverisk mitigation and cost optimization.

Effective tax rateUnder the premise of complying with the laws andregulations and tax policies of each country and region,we prevent double taxation through reasonable taxplanning and standardized use of tax credit incentivesto effectively reduce tax costs and enhance theeconomic benefits of enterprises.In FY2022, the total income tax expense of Fii will beRMB1,879 million, of which the share of tax in China(excluding Hong Kong, Macau and Taiwan) will be 80%,9% in China, Hong Kong, Macau and Taiwan, 6% in therest of Asia and 5% in the rest of the world.

The overall effective tax rate for FY2022 is 8.56%, whichis lower than China’s statutory corporate income taxrate of 25%, mainly benefiting from China’s incentivesfor R&D and industrial upgrading, including preferentialtax rate for high-tech enterprises (-6.8%), additionaldeduction for R&D expenses and additional deductionfor fixed assets acquired by high-tech enterprises inthe fourth quarter of 2022 (-6.3%), and preferential taxrate for western development ( -0.5%), etc.; in addition,the preferential policies obtained in overseas regionsfurther reduce the effective tax rate (-3.4%).

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CEO

Fii事业群资安执行单位

资安治理委员会CISO审计

资安治理工作小组

资安运维工作小组协作

IR

年报

秘书处

提供资安治理相关数据以供审查协助沟通公司资安治理概况

依议题邀请外部委员

情资分享中心

教育交流通报服务情资

Information security

As a leading global provider of total industrial Internet solutions, the production and operation activities of IndustrialF&T involve a large amount of information data. Along with the accelerating digitalization process, maintaininginformation security is an important prerequisite for the smooth running of business. The occurrence of informationsecurity incidents may bring economic losses to the company and affect its brand value and public image. Thecompany complies with the Law of the People’s Republic of China on Network Security and other laws and regulations,and carries out information security governance and privacy protection in accordance with ISO/IEC 27001 internationalstandard.

Information security management systemThe company is the responsible body for information security, and the CEO is the first person in charge of informationsecurity. The Information Security Governance Committee is the highest leading decision-making body for informationsecurity work of the company, responsible for designing, laying out and coordinating information security governance,and the Chief Information Security Officer (CISO) (with a secretariat under it) carries out relevant risk identification andmanagement work, and forms the information security governance organization together with the information securitygovernance working group, the information security operation and maintenance working group and the informationsecurity executive units of each business group. This organization is applicable to all employees of the company andits subordinate business groups, molecular companies and holding companies, etc. to build an information securitymanagement system with the participation of all employees.

We continue to improve our information security management system, formulating and issuing the InformationSecurity Management Measures in 2022, and implementing uniform information security standards and specificationscompany-wide and ensuring that they can be effectively implemented. We issued the “Information Security WhitePaper”, “Personal Information Protection Management Regulations”, “Information System Security DevelopmentGuidelines” and other documents to institutionalize information security policies and strategies, standardized systemsand guidance documents to protect the security of our own information assets and those of our customers andbusiness partners. By the end of 2022, the company had six subsidiaries certified to ISO 27001, one more than lastyear. Currently, the ISO 27001 certification, mainly for Industrial F&T, is being introduced and is expected to pass theaudit in June 2023.

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Risk typeRisk ratingTake measures

Information securitycompliance risk: violationof information security-related laws andregulations, regulatoryagencies and customerauditing requirements,the risk of notification orpunishment

Medium

Self-correction:

?Self-correction is carried out at the business group level to ensure that the compliance requirements of lawsand regulations, regulatory agencies, and user audits are met.?At the level of security management operations, sort out, analyze and rectify data exit scenarios to ensure thatdomestic and foreign data protection compliance requirements such as the Data Security Law of the People’sRepublic of China, the Personal Information Protection Law of the People’s Republic of China, and the GeneralData Protection Regulation (GDPR) of the European Union and the California Privacy Act (CPPA) of the UnitedStates are met. 2022. A total of 29 rectification items were completed.Leak detection and remediation:

?According to the PDCA principle, we will check the leaks and fill in the gaps, and continuously optimize theinformation security management rules and regulations.?Organize joint meetings to review the content to be improved or missing in the system. 2 meetings will be heldin 2022.External threat attack risk:

attacked by DDos, virusor ransomware threats,resulting in informationsecurity incidents

High

Implementation of security protection:

?Prepare and implement “Information Security Incident Notification and Emergency Disposal ManagementRegulations” to standardize employee information security behavior norms and enhance employee securityawareness.?Deploy network abnormal traffic analysis and virus protection system to enhance network independence.Evaluate the effectiveness of protection:

?Hold regular meetings to evaluate the protection capability of the current information security system.?Organize self-examination and self-inspection activities to detect the response capability of security events byclosely following the latest system attacks.Risk of internalinformation leakage:

internal informationleakage may occur whenthe company’s network orsystem has vulnerabilitiessuch as loopholes and ITinternal control measuresare inadequate

Medium

Institutional safeguards:

?Prepare “Personal Information Protection Management Regulations” and “Data Security ManagementRegulations” to provide a basis for data and personal information protection?Prepare “Information Security Inspection and Assessment Management Regulations”, “Information SecurityVulnerability Management Regulations” and other systems to standardize the information security inspectionand assessment process and vulnerability management work.Security inspection and assessment:

?Carry out internal security inspection and assessment, and timely deal with the security vulnerabilities found.?Regularly carry out offensive and defensive exercises to test the effectiveness of defense measures.

Information securitytechnical measuresBased on the identified risks and management systems,we continue to improve our information security high-level design program and implement information securitycountermeasures at three levels: cloud data centers,business groups, and security management operations. in2022, we continue to optimize and enhance our programto drive its implementation.For our own business characteristics, we identify threemajor risks based on asset assessment, threat assessment,and vulnerability assessment, based on the assessmentof existing security measures, using appropriatemethods and tools to calculate the likelihood of threatsand asset vulnerabilities triggering security events, andcomprehensively consider the impact of informationassets after their security attributes are compromised:

information security compliance risk, external threatattack risk, and Internal information leakage risk. For theabove three major risks, we take measures to preventinformation security risks in various aspects according tothe corresponding management requirements.

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Performance and Appendix

We provide solid security for the company’s information systems, adhere to the principle of “security first, preventionfirst”, establish prevention and early warning mechanisms, adopt vulnerability scanning, penetration testing, automatedmonitoring and other means, carry out regular or irregular information risk audits, and deepen the information systemrisk detection capabilities.Audit meansAudit frequencyAudit content

Vulnerability scanQuarter

Use scanning tools combined with manual penetration testing methodsto test the company’s DMZ area servers and web applications formultiple times

Penetration testingQuarter

Use real attack and defense ideas to actively analyze system securityissues and test the security protection capability of the official websiteResearch interviewQuarter

Conduct interviews with relevant staff to identify possible data securityrisks during the operation of the company’s products or systemsThird party auditYear

Invite professional third-party organizations to conduct third-partysecurity audits on the company’s products or systemsAutomatedmonitoring

Irregular

Implement automated, rolling real-time monitoring of the network andtraffic involved in the company’s products or systems with the help ofsecurity monitoring toolsISMS internal auditIrregular

Conduct internal audits of ISMS for ISO 27001 system and continuouslyimprove information security management systemTerminal securityaudit

Irregular

For employees’ office terminals, ensure their safe and stable operationto prevent risks such as data privacy leakageThe company has a complete information security event response and emergency disposal mechanism, suchas Information Security Event Emergency Management Regulations and Information Security Event NotificationMechanism, to ensure that we can quickly respond to various security events. In order to respond to informationsecurity events more effectively, we classify information security events in a hierarchical manner based on the natureof the cause, scope of impact and severity of information security events, and formulate corresponding responsemeasures in order to achieve rapid response and treatment. In addition, some business groups personalize theinformation security incident response process to better fit their own operational characteristics. At the same time, weregularly organize emergency drills to improve the awareness of responding to unexpected information security risks.Enhance the response capability of emergency events.

The professionalism of our team is the guarantee for the implementation of initiatives on the ground. In the fieldof information security, our full-time employees hold the following qualifications, with a total of 69 cumulativequalifications.

CISP (Certified Information Security Professional)CISSP (International Certified Information System Security Professional)CISA (International Certified Information System Auditor)CDPSE (Certified Data Privacy Security Experts)CDSP (Certified Data Security Professional)PDPF-GDPR (Privacy & Data Protection Foundation Based on GDPR)PDPF-PIPL (Privacy & Data Protection Foundation based on Public Interest Protection League)CCIE security (Cisco Certified Internetwork Expert)ISO 27001 Auditor（ISO27001 Auditor）

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Case

Case

Security awareness capability enhancementIn order to enhance the information security awareness of all employees, we increase information securitypublicity and conduct comprehensive information security education courses for all employees of our company.these trainings aim to help employees understand information security knowledge, prevent information securityrisks and improve the information security protection ability of professionals. in 2022, we conducted a number ofinformation security trainings, covering system security operation, network security, product information securityand other In 2022, we conducted a number of information security training sessions, covering system securityoperations, network security, product information security and other areas, with a total of 142 sessions and 267.1hours of total time, covering 121,939 employees.

Ransomware Attack Prevention Training

At the beginning of 2022, ransomware attacks in manufacturing industry are frequent and endanger internalinformation security. In order to better prevent and respond to external ransomware attacks, in May 2022,Fii organized the training of “Defense and Response of Ransomware Attacks” for all IT and informationsecurity personnel. This training is a new application of the simulation attack and defense exercise platform,which simulates the process of ransomware attack and shows the steps to deal with ransomware virusfor the participants. After the demonstration, the participants practiced, learning and mastering detectionand defense on site, verifying the effectiveness of the training while enhancing the professional skills ofpersonnel to deal with ransomware attacks. In total, more than 200 people participated in this training.

Customer privacy data protectionProtecting personal privacy is an important partof information security. Safeguarding customerprivacy from disclosure not only helps build trustwith customers, but also serves as an effectiveendorsement of product strength. We arecommitted to establishing and implementing a dataprivacy and security management policy aboveregulatory requirements, formulating a Data Privacyand Security Policy and publishing it on our officialwebsite, regulating data and privacy management,and helping Fii become a global model of dataprivacy and security compliance.

Conducting training on personal privacy protection for all employees

With the promulgation of the Law of the People’s Republic of China on the Protection of PersonalInformation coming into effect, the period of strong regulation on privacy security protection has arrived.In order to better implement the requirements of relevant laws and regulations on privacy protection andmaintain the privacy security of customers, Fii organized the training on “Personal Information and PrivacyProtection” in December 2022. Taking privacy protection as the starting point, we analyzed and explainedeach important link around the collection, storage, transmission, query, use, provision and deletion ofpersonal information, combined with typical cases, and taught the means to protect personal privacy.The training covers all employees about 200,000 people, effectively conveying the security knowledge ofpersonal information and privacy protection to all employees.

Comprehensive Management CoverageTransparent access path

Our data privacy and security policy appliesto:

?Each of Fii’s global operations?All companies and employees of Fii, as well as allthird parties that the company touches?All data in the operation and managementprocess and its full life cycle

We promise that when collecting andprocessing user data:

?Collect and process data only for statedpurposes?Obtain the user’s prior knowledge and consent?Respect the user’s right to access, correct anddelete his or her data

Various control measuresPositive security measures

We take the following control measures:

?Strengthen software security and regularlycheck hardware protectiveness?Conduct capital security acceptance for newproduction plants?Conduct regular monthly audits, customer andthird-party auditing activities

We establish data privacy securitymanagement mechanism:

?Hierarchical management of data privacywith different protection measures such asdesensitization/encryption?Full lifecycle security assessment of data privacyat least once a year?Regularly organize data privacy competencyeducation training

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Business ethics

In the Code of Conduct for Corporate Social Responsibility of Fii, we have clearly set out the standards of businessethics, with the Board of Directors as the highest guiding unit, and follow the highest standards of business ethicsin any business activities, explicitly prohibiting corruption, money laundering, improper competition, etc. We worktogether with our employees and partners to maintain a sunny and transparent business operation ecology. If wefind any form of bribery, corruption, extortion and other violations of business ethics standards, we will adopt a “zerotolerance” attitude, terminate the relationship with the relevant persons, and take legal action when necessary. Asof the end of 2022, nine subsidiaries have been certified by the Responsible Business Alliance (RBA), and plans areunderway to promote the certification process for more business groups. During the reporting period, the companydid not receive any litigation cases related to corruption or unfair competition.

System management upgradeIn 2022, we upgraded our anti-fraud management system by formulating and publishing the Fraud PreventionManagement Measures. The system covers all employees and all suppliers. In the procurement process, theMalpractice Prevention Department works with the procurement side to implement and support the anti-corruptionwork of suppliers. In addition, we joined the Guangdong Enterprise Internal Control Association to join hands withother members to share the governance and build a clean business society.In December 2022, the Board of Directors considered and adopted the Work Plan for Business Ethics Governanceof Foxconn Industrial Internet Corporation for 2023, which elevated business ethics work arrangements to the levelof the Board of Directors for the first time and further strengthened the Board of Directors’ responsibility to assumeresponsibility for governance and supervision of business ethics issues.

The Budapest Klub, founded by Ervin László, a member of the Hungarian Academy of Sciences, presents its

subsidiary Cloud Network Technology Kft with the Business Ethics Award 2021

Misconduct reporting, investigationIn order to strengthen internal control and avoid employee fraud, we are adding a new Whistleblower ManagementMeasures to clarify the scope of complaint and report acceptance and regulate the management of the receipt andprocessing of whistleblowing leads. We encourage real-name reporting, while we clarify the whistleblower protectionmethods to protect the legitimate rights and interests of whistleblowers, and resolutely do not disclose the personalinformation of whistleblowers to avoid retaliation. We protect the personal safety of whistleblowers, for face-to-facereporting, we arrange at least two reception staff; in the reception of female whistleblowers, to ensure that at least onefemale staff to accompany.During the reporting period, we received a total of 71 reporting tips and handled 100% of them, of which 65 wereclosed, with 0 cases of violations involving corruption or bribery, discrimination or harassment, conflict of interest,money laundering or insider trading.

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Malpractice Prevention and Control Department leadreporting channel:

Internal Tel: (560) 15111External Tel, WeChat: 132-6681-5111QQ:2766869980E-mail: fii-jb15111@fii-foxconn.com、fii.jb15111@gmail.com

Report by letter or in person:

C1-2F, Foxconn Science and Technology Park, Donghuan 2nd Road, Longhua District, ShenzhenMalpractice Prevention and Control Department, Floor 52, Rongchao United Headquarters Building,Nanshan District, Shenzhen 132-6681-5111We honestly register all the information reported, in accordance with the “independent, objective, impartial” principleof handling the report clues. For whistleblowers with outstanding contributions to the investigation of cases, we takeincentives. At the same time, we reject all false accusations and frame-ups, and for whistleblowers who fabricate factsin the name of reporting, we dispose of them in accordance with company regulations.Report processing process:

Fraud prevention mechanismWe are committed to maintaining an effective internalcontrol system and forming a fraud preventionmechanism to nip fraud in the bud through awarenesspromotion, integrity pledges and other integrity culturebuilding.We educate and promote anti-corruption and integritythroughout each employee’s career in the company.We arrange online training courses on the theme of“integrity and honesty” for each employee from thetime of joining the company, informing them of thecompany’s integrity system, the code of conduct foremployees, and the red lines of their future positions,and deepening their familiarity with the company’sintegrity and honesty requirements through post-course examinations, so that new employees canbe the first to recognize Violations and remain alertto them. In the special anti-corruption and integrityself-cleaning initiative, we require employees inmanagement positions and other higher positionsto declare the Declaration of Integrity and Conflictof Interest, and some business groups require allemployees to complete the declaration processto advance the company’s integrity compliance

governance. All employees within the company arerequired to sign the Integrity Pledge to ensure that theyare aware of and strictly abide by the integrity pledge,which prohibits bribery, gifts of valuable property andbanquets, and strictly prevents bribery and bribery.In our daily work, we have carried out many anti-corruption education and publicity activities to build upthe bottom line of integrity of each employee from thelevel of awareness and ability.Our anti-corruption and anti-fraud mechanism alsocovers the management of our supply chain. For oursuppliers, we specify business ethics requirements inour Supplier Social and Environmental ResponsibilityCode of Conduct, requiring each supplier to operate ingood faith and prohibiting bribery, extortion, corruptionand other corrupt incidents. business environment.During the cooperation process, we require them tofill out the Supplier Proactive Declaration Form andsign a series of agreements related to integrity clausessuch as the Environmental Protection and SocialResponsibility Commitment Letter, in order to jointlymaintain a sunny and clean business environment.

0305

0406

Receive registeredinformation about

the report.

Pre-investigation and

analysis of thedepartmentsinvolved.

Report distributioninvestigationdepartment.

Standinginvestigation toinvestigate the truth.

Transfer to the securityorgans dependingon the severity of thesituation.

Provide timelyfeedback on theinvestigation results ofthe whistleblower.

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In 2022, we conducted several anti-fraud awareness and competencytraining activities for all employees and suppliers:

Strengthening the Board’s awareness and oversight of business ethics during the year-end businessethics debriefing;Within the Audit Division, we conducted a total of five specific capacity building trainings;Awareness development and skills enhancement training activities for all employees, with a total of343,090 participants and 465,198.9 hours, with 77.22% of employees receiving anti-corruption policycommunication and training;Conducting one integrity awareness promotion conference for all suppliers, with 76.26%* of suppliersreceiving communication and training on anti-corruption policies;Inviting third-party professional institutions and conducting special training on business ethics;Notifying cases of fraudulent behavior to warn employees to take warning;Daily promotion of the culture of integrity through plant posters, company web pages and public articles;Establishing December as Integrity Practice Month to enhance employees’ knowledge of the internalintegrity management system and internal control knowledge.

Invoice audit knowledge transfer to prevent and resolve corruption risks

In November 2022, we carried out offline invoiceaudit knowledge transfer activity. The activitywas hosted by the person in charge of the auditdepartment, who introduced relevant internalregulations and national laws and regulations,and introduced common violations and theserious consequences and losses they causefor enterprises and individuals through realcases. In addition, the presenter also sharedthe experience and suggestions of practicalwork carried out to help the person in chargeof relevant positions enhance the awareness ofinvoice compliance and improve the company’sfraud risk prevention ability.

“Integrity Month” Activities

December is the “Integrity Culture Month” of IFLA. Through calling on employees to study the system andtraining related to the prevention and control of malpractice, we strengthen the integrity construction ofthe company and enhance the integrity education of employees. In this activity, we issued two new systemsrelated to the prevention and control of malpractice, and improved the company’s integrity construction. Inorder to strengthen staff integrity education, we organized system learning and internal control knowledgesharing training for all employees to raise their awareness of corrupt behavior and promote the idea ofclean practice culture.We conducted a corruption risk assessment on most of the operating sites and did not find any significant corruptionrisks. To ensure the effective implementation of various policies and regulations, we actively carry out businessethics and anti fraud related audits covering all operating locations every year based on the nature of our company'sbusiness, in order to effectively control compliance risks. For some employees who have resigned from sensitivepositions, we will conduct special audits. We also attach great importance to the business ethics requirements forsuppliers and conduct periodic reviews of supplier admission and management work. At the same time, to ensure theeffectiveness of the audit work, we have hired experienced third-party institutions to conduct walkthrough and controltests, with a total of over 5000 test samples. During the reporting period, the company conducted a total of 8 routineaudits, 9 special audits, and 3 CoC audits, totaling 20; According to the internal control evaluation results, there are nofraudulent practices among the company's directors, supervisors, and senior management personnel.

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无偿献血 无上光荣

Responding to national strategiesWorking together with the industryParticipation in community public welfare

Social value creator

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Society is the soil for enterprise development, and we grow up with our roots in society, and cannot be separatedfrom the prosperity and stability of society. We closely link our business strengths with social value areas, graspnational strategic needs, play a leading role in the industry, and at the same time participate in social welfareactivities, actively seek fulcrums to pry more social value creation.Responding to national strategies

Digital industrialization

Industrial digitalization

We strengthen our key technology innovation capabilities to secure the supply of core technologies forthe digital economy. In national strategic fields such as network communication and artificial intelligence,we continue to invest in the research and development of cloud computing, 5G and other technologiesand related products and equipment, and apply them to multiple fields to achieve cross-border innovationin digital technology. At present, our business has achieved full category coverage of digital economyindustry, effectively transforming digital technology into applications in semiconductor, new energy vehicleparts, robotics and other fields, and accelerating the process of digital industrialization.

We give full play to our strengths in the fields of smart manufacturing and industrial Internet to supportSMEs to adapt to and join the wave of digital transformation. We address the development pain pointsof SMEs such as weak management capabilities and lack of digital talents, and actively cultivate andpromote digital solutions for SMEs to help them reduce transformation costs and accelerate the digitaltransformation and upgrade of enterprises.

Digital economyDuring the “14th Five-Year Plan” period, China will continue to develop the development strategy of digitaleconomy in depth. After the agricultural economy and industrial economy, the digital economy will becomethe main economic form, which is the key to promoting high-quality development in China. Over the years, wehave continued to cultivate the industrial Internet industry and promote digital industrialization and industrialdigitization.

We maintain close communication and cooperation with the government and other stakeholders, participate inscientific and technological research and development in cutting-edge areas, promote the digital economy to anew stage of widespread application and universal sharing, and provide advice and suggestions for the country’shigh-quality development. We support the establishment of the integration and innovation platform, stationedin the test center of China Industrial Internet Research Institute under the Ministry of Industry and InformationTechnology in Beijing, showcasing the development of the industrial Internet industry and application cases, andreceiving various visitors from the national government, industry organizations and scientific research institutionswith the help of the national display platform to form an innovative demonstration effect. In addition, we regularlyunite industry experts to communicate and exchange ideas, and conduct training and lectures in many places tospread the industry development experience to all over the country.Settled in the Test Center of China Industrial Internet Research Institute under the Ministry of Industry and Information

Technology in Beijing

As the world’s leading intelligent manufacturing and Industrial Internet overall solution service provider, inresponse to the national strategy of building a digital China and developing a digital economy, Fii has alwaysadhered to the development direction of "intelligent manufacturing+Industrial Internet", adhered to theproduction and business strategy of deep plowing in China and global layout, and helped “common prosperity”,“high-quality development” and other era goals.

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Signing the national partner program, Empowering industry development around the worldCase

In November 2022, CAICT’s “Hundred Cities and Thousand Parks Tour” national partner program wasofficially launched. As one of the first signatories, Fii shall support the construction of industrial Internet inlocal parks to help bridge the “last mile” of industrial Internet, continuously empower the landing of industrialInternet achievements, and promote China’s digital economy to become bigger and stronger.

Sustainable development

China insists on taking the green development path and vigorously promotes a green, low-carbon and circularproduction system. Fii takes green development as one of its future focuses, actively exploring technologies in thefields related to circular economy, carbon peaking and carbon neutrality, designing green products, using cleanenergy and applying low-carbon measures in the manufacturing process, and establishing a green supply chainto collaborate with upstream and downstream enterprises to save energy and reduce emissions.

We are committed to radiating our green manufacturing solutions nationwide and passing on our experienceof advanced low-carbon environmental protection concepts to various industries. With advanced energy-savingtechnologies and digital solutions, we help aluminum alloy material companies build green manufacturinglighthouse factories, create industry chain circular economy and green aluminum raw material supply chain,reduce energy use by 16%~26% in a multi-pronged approach, and layout the whole life cycle green manufacturingin an all-round way.

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Intelligent manufacturing toenhance operational capabilities

●?Introducing a number of innovative

technologies, equip enterprises withhighly flexible and robust manufacturingsystems to improve production efficiencyand product quality, and achieve costreduction and efficiency.●?Based on several key informationtechnology systems, export refinedmanagement experience to empower thebusiness management level.

●?Create a supply chain collaborationplatform to help realize the end-to-endvalue chain of enterprises and improveresource allocation efficiency.●?Joint industry partners to aggregateindustry technologies, form industrydemonstration samples and assist in low-cost promotion.

●?Online launch of Industrial InternetAcademy to provide a series of talenttraining services such as digital coursesand lighthouse tours to acceleratepersonnel capacity building.

●?Offline sign talent training agreements with

various local colleges and universities toincrease the industry’s talent reserves, andbuilt the Wisdom Valley demonstrationbase to play a role in industry education.

Ecological constructionconnecting upstream anddownstream industrial chains

Sound training systemto deliver talents

Empowering and driving industry developmentWorking together with the industryAs a new industrial ecology deeply integratedwith the new generation of information andcommunication technology and industrial economy,Industrial Internet uses 5G, cloud computing,artificial intelligence and other new generation ofinformation and communication technologies tohelp the industrial chain improve its modernizationlevel and support and serve the manufacturingindustry to achieve high-quality development.Industry Fulian continues to deeply cultivateIndustrial Internet, give play to the leading radiationeffect, introduce the ecology of Industrial Internetinto other industries and fields, and drive thetransformation and upgrading of all industries.Based on the experience of successfully participatingin building six world-class “lighthouse factories”,our “lighthouse pilot plan” has served more than1500 enterprises, successfully achieved enablingcooperation in electronics, automobile, machinery,home furnishing, energy and other industries,and worked with multiple industries to develop asustainable Industrial Internet model. In May 2022,the company was selected as the “Cross industryand Cross domain Industrial Internet Platform” of theMinistry of Industry and Information Technology ofthe People’s Republic of China for four consecutiveyears by virtue of its strong technological researchand development and integration innovationcapabilities, enabling transformation and applicationpromotion capabilities, sustainable developmentcapabilities and good social credit; In September ofthe same year, Fii won the “Best Industrial InternetSolution Award” in the “Industrial Technology ? MostCommercial Value List” of Leifeng Network, and itsexternal empowerment capability across industriesand fields was highly recognized.

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CaseCase

The automotive industry is a representative of advanced manufacturing, with numerous segmented fields,complex manufacturing processes, and multiple processes involved, resulting in an increase in researchand development costs. The external development environment is also severe, and the new personalizedneeds and fierce competition of consumers have brought many challenges to the domestic automotiveindustry. Fii is committed to building a vertical industry internet platform, promoting the transformationand upgrading of the entire automotive industry chain from point to area by creating industry benchmarkprojects, and laying a solid foundation for the high-quality development of the automotive and partsindustry. We provide intelligent manufacturing solutions for many automobile parts manufacturers, suchas wheels, chassis, engines, and automotive pumps, to help enterprises effectively reduce productioncosts and product defect rates, improve the overall efficiency of equipment and per capita output value,achieve outstanding results in Digital transformation, and work together with the automobile industry tocreate a new ecosystem of intelligent manufacturing.

The upgrade of intelligent manufacturing has become a consensus in industrial development. Since 2021,Foshan has launched the largest wave of digital transformation, striving to achieve Digital transformationfor more than 80% of industrial enterprises by 2026. The Industrial Rich Alliance actively responded,gathering forces from various sectors of government, industry, academia, and research, with a focuson manufacturing enterprises in Foshan and the Guangdong Hong Kong Macao Greater Bay Area. InNovember 2022, the first “One Hundred Thousand People Lighthouse Training Camp” Jingying Classcourse was held. The course covers topics such as lean management, Industrial Internet, industrial AI,collaborative robots, flexible production, low-carbon manufacturing, and smart parks, and gathers industryexperts with lighthouse power to share the landing path and practical experience of Digital transformation.In the future, we will continue to carry out intelligent manufacturing elite training activities, committed tocultivating a group of high-end skilled, applied, and research-oriented talents, promoting the high-qualitydevelopment of Foshan’s advanced manufacturing industry in a three-dimensional manner, and creating amodel for innovative development in the Guangdong Hong Kong Macao Greater Bay Area.

Digital precision production significantly improve the production efficiency of pump parts companies

Flexible and closed-loop intelligent manufacturing capabilities assist wheel manufacturers in achieving efficiency and

quality improvements

Empowering the automotive industry to jointly create a newecosystem of intelligent manufacturing

Set up “One Hundred Ten Thousand People Lighthouse TrainingCamp” to pilot Digital transformation

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Performance and Appendix

Honors and awards forcharity and public welfare in 2022

2022 Top 500 Chinese Enterprises in Charity and

Public Welfare2022 Top 500 Excellent Cases of Chinese Enterprise

Charity and Public Welfare2022 Top 500 Chinese Manufacturing Enterprises in

Charity and Public Welfare2022 Top 500 Chinese Private Enterprises in Charity

and Public Welfare2022 Top 500 Chinese Private Enterprises in Charity

Certificate Display

Case

As a leading enterprise in intelligent manufacturing, Fii is well aware of the role of talent in promotingindustry development. In December 2022, the Industrial Federation of Trade Unions organized twoprofessional skills competitions, namely the 3D CAD drawing skills competition and the grinding skillscompetition, attracting more than 220 employees to participate in the registration. With the help ofthis competition, we provide a communication and competitive platform for various employees in theindustry, helping them improve their professional and technical abilities. At the same time, we haveexcavated more skilled and outstanding talents for the development of advanced manufacturingindustries in Shenzhen and even the country, and strengthened the supply of industry talents.

Participation in community publicwelfareHeart for public welfare, never stop. We actively practice corporate social responsibility, actively participate inpublic welfare undertakings, further expand the theme of public welfare activities, and carry out various charitableand public welfare activities in various forms throughout the country. We contribute our efforts in various fieldssuch as helping disadvantaged groups, advocating environmental awareness, and rural revitalization. In 2022,we conducted a total of 786 volunteer service activities, with a total of 34338 participants and a total of 153383service hours.

Voluntary service activities (field)

Cumulative participation (persons)

34,338

Accumulated service hours (hours)153,383

Undertake vocational skills competitions and build industrytalent teams

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Caring for disadvantaged groups

The voices of vulnerable groups are easily ignored, and their voices need the care and assistance of the entiresociety. We assist special disadvantaged groups, carry out diversified volunteer activities, enhance their sense ofgain, happiness, and security, and promote social harmony and development.Blood donation, saves lives

Supporting disabled individuals to live independently

Comfort the lonely elderly and send warmth

Case

Case

Case

Blood donation shall guarantee the smooth medical treatment and save the lives of seriously illpatients. In October 2022, subsidiaries in several regions actively responded to the call of local streetsand organized blood donation activities. At the same time, Foxconn Nanning Science and TechnologyPark and the Youth League Committee recruited a total of 16 volunteers from employees to participatein information filling and registration, taking temperature and blood pressure, etc. to assist the blooddonation activity to proceed in an orderly manner. Blood donation activities are also carried out infactories such as Jiyuan, South China, Taoyuan Nanqing, and Funing. During the reporting period, atotal of 1,010 employees participated in blood donation, with a volume of over 138,450ml.

Foxconn Taiyuan Park and Jincheng Park have participated in the 99 Public Welfare Day event for 6consecutive years. This year, we join hands with the Shanxi Disabled Persons Welfare Foundation to callon everyone to pay attention to the public welfare undertakings for disabled people. The donated fundswill be used to assist disabled people in physical therapy, rehabilitation, education and employment,improve the quality of life for disabled people, and promote their comprehensive development. Ourcolleagues actively contributed their love and participated in this charity donation activity. The totalnumber of participants was 39325, with a total donation of 337384.08 yuan. Both Taiyuan and Jinchengparks were awarded the honorary title of “Best Love Team” by the Shanxi Disabled Persons’ FederationFoundation.

Respecting the elderly is a fine traditional virtue of the Chinese nation. In October 2022, the Party andYouth League Committee of Jincheng Park organized the “Warm Sunset Red Thick Helping the Elderly”elderly care activity in the nursing home, caring about their physical condition, daily life, and otherconditions, and sending comfort gifts and caring blessings to the elderly.

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Go deep into remote schools and help impoverished students

Fii Leading green development initiative

Case

Case

In remote schools in Beijiang Province, Vietnam, the majority of students come from impoverished andsemi impoverished families, living a difficult and difficult life. Fii is a subsidiary located in Vietnam, andboth Fuhong and Fuyu are very concerned about the vulnerable groups in the local community and areenthusiastic about participating in public welfare activities. On Children’s Day and Mid-Autumn Festival,they went to all parts of Beijiang Province to visit poor students, and sent scholarships and holiday giftsto encourage students to study hard, be positive, and accompany children to spend a happy and warmfestival, with a total investment of 22500 yuan, benefiting more than 80 people.

In June 2022, as a representative of the carbon trading and control unit in Longhua District, Shenzhen,Industrial Rich Union was invited to participate in the 2022 “June 5th” World Environment Daypromotion event held by Longhua District, Shenzhen. On site, it collaborated with multiple greenenterprises and led the launch of a four point green production initiative, calling on all enterprises tostrengthen carbon emission management; Create a green manufacturing system; Implement energy-saving and carbon reduction actions; Fulfill the carbon market compliance responsibility. The companysets an example and continues to practice the requirements of green development. Its subsidiaryShenzhen Jingjiang Yunchuang Technology Co., Ltd. was awarded the honorary title of “Green Factory”on site, and green production was once again recognized

Advocate for environmental protectionLucid waters and lush mountains are invaluable assets. While vigorously promoting the research and applicationof green technologies, we hold a series of environmental public welfare activities to promote environmentalawareness, encourage the public and other enterprises to pay attention to and protect the natural environment,and strive to be promoters of green development and low-carbon life.

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Performance and Appendix

Tree planting activities for “Greening and Beautifying the Environment”

“Assisting students and elderly” to promote rural revitalization

Loving donation to support the development of western region

Second-hand bazaar spreads green lifestyle

Case

Case

Case

Case

In March 2022, Nanning Park held the 10th Arbor Day event, organizing more than 30 supervisorsand volunteers to plant a total of 106 saplings in the park. While beautifying the park environment, itstrengthened the awareness of loving, planting and protecting greenery, cultivate the concept of greenenvironment and advocate ecological civilization.

In order to consolidate and improve the effectiveness of poverty alleviation, Nanning Science andTechnology Park and Suwei Town in Jiangnan District have carried out paired assistance work and carriedout rural revitalization activities of “Assisting students and elderly”. After the preliminary investigation andunderstanding of the twinning area, Fii combined the actual situation to purchase living materials andcomfort funds, providing special attention and assistance to local left behind children and elderly people,and contributing to the rural development of Jiangnan District.

In June 2022, Fulian Precision Electronics (Tianjin) Co., Ltd, a subsidiary of Fii,responded to the call of Tianjin Economic and Technological DevelopmentArea (TEDA) and consciously joined the cause of rural revitalization bydonating a total of RMB 400,000 to Binhai New Area Charity Associationand Binhai New Area Red Cross, vigorously promoting the collaboration andsupport cooperation between the East and West, and helping to consolidateand expand the achievements of poverty alleviation in paired regions.The positive contribution has been recognized, and won the 2022 Tianjineconomic development zone “Social Responsibility Award” jointly issued bythe district party committee and management committee.

In 2022, Taoyuan Nanqing Plant took the initiative to practice the 3R concept: Reduction, Reuse andRecycling, and held a second-hand bazaar to call on all employees to bring the unused items to thesecond-hand bazaar for trading, aiming to promote the recycling and utilization of resources, extendthe product life cycle and reduce the waste. At the same time, Fii advocate everyone to establish thecorrect concept of consumption and avoid the bad habit of wasting resources.

Contributing to rural revitalizationWith the target of poverty eradication completed on schedule, the focus of the “three rural areas” has graduallyshifted to rural revitalization. We actively respond to the call of the state, solidly promote the work of ruralrevitalization, help the twinning areas, and contribute to the consolidation and expansion of the effectiveconnection between poverty eradication and rural revitalization.

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Performance and Appendix

Labor rightsEmployee diversityHuman rights protectionEmployee training and developmentTalent attraction and retentionOccupational health and safety

People-oriented employer

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Performance and Appendix

Labor rights

With the principle of people-oriented and fair competition, Fii strives to build a high-quality professional talentteam and continuously improve the talent management mode, always respects and protects the legitimate rightsand interests of all employees, continuously improves the salary and welfare system, attaches importance totalent development and training, strives to create a healthy and safe working environment, fully cares for theworking life of employees, and gives more rights and interests to employees according to their own development.Enable employees to share the development achievements with the enterprise.Fair employmentIn the recruitment process, we manage the recruitment process in an orderly and standardized manneraccording to the Recruitment Operation Procedures to improve the recruitment efficiency, ensure the quality ofrecruitment work, and ensure the selection of qualified and excellent talents. Through various talent recruitmentchannels such as online recruitment, campus recruitment, on-site recruitment, internal recommendation andheadhunting companies, we maximize the breadth of information release and precisely match recruitmentresources. The company actively improves the talent management and cultivation system to help employees’career development. The company actively interacts with external parties and takes the initiative to broadenmethods of the talent selection and recruitment, reserve a high-quality talent pool for the company’s developmentcomprehensively and multi-dimensionally. We firmly believe in the importance of talent diversification to thesustainable development of the company. When recruiting talents, the company strictly follows the principle offair, just and open selection, and always takes professional ability and technical level as the recruitment criteria,so long as the candidates’ conditions meet the requirements of the corresponding positions, he/she can getequal interview opportunities.Employee privacy protection

The company respects and protects the privacy data of applicants and employees, implements the legal andregulatory requirements of the Personal Information Protection Law, and clarifies the management methodsof employee information in the collection, storage, access and use as well as processing by revising thepersonal information handling methods and protection contents in the Employee Handbook and drafting andimplementing the signing of the Personal Information Protection Notice. In addition, the company and humanresources signed a confidentiality agreement, shall not discuss, leak, private changes to the contents of the file,and is not allowed to discuss, disclose, or privately change the content of the personnel files. It is also prohibitedto provide the personnel files to others for review without approval. A dedicated person is responsible formanaging employee files, others are not allowed to read, to protect the integrity and confidentiality of employeeinformation.

Employee diversityWe respect differences and encourage diversity. In the Recruitment Operation Procedures, it is clearly stipulatethat employees shall not be discriminated against based on gender, age, region, religion, etc., or make it anobstacle to their development in our company, and respect and welcome people with different backgrounds toapply for jobs in our company. Employees of different genders, ages and educational levels are intermingled andcomplement each other’s strengths, which is conducive to achieving the best use of people and talents, and hasprovided an important guarantee for enterprises to consolidate professional operations and stimulate innovationcapabilities. We always adhere to the principle of equal employment between men and women, embrace adiverse and international workforce, and ensure that all employees enjoy fair work opportunities. As of the end of2022, the company had a total of 81,040 female employees and 118,033 male employees, with female employeesaccounting for approximately 41% of the total number of employees.The company advocates workplace inclusiveness and provides equal development opportunities for peoplewith disabilities. In meeting the requirements of business operations, the company provides employmentopportunities and corresponding welfare protection for people with disabilities and actively undertakes corporatesocial responsibility. As of the end of the reporting period, the company had a total of 1,763 employees withdisabilities. In addition, to create a fair employment environment, the company supports the employment ofmiddle and senior aged people. Among them, the company does not allow discrimination against the age ofjob seekers to ensure that all employees enjoy fair job opportunities. In addition, the company make flexiblearrangements for employment hours, methods, and wages according to the physical condition, literacy, and skillstrengths of senior employees, and maintain a scientific and reasonable workload to create a sustainable workenvironment for senior employees.

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Performance and Appendix

Human rights protection

Human rights protection

Fii has always believed that advancing business and respectinghuman rights shall go hand in hand, and that a commitment tohuman rights is the cornerstone of successful business operationsworldwide, shaping a positive work environment and culturethrough a core commitment to human rights policies, upholdingand promoting respect for fundamental human rights for all. Basedon the UN Guiding Principles on Business and Human Rights(UNGPHR) approved by the United Human Rights Council, theUN Universal Declaration of Human Rights (UDHR), Declarationon Fundamental Principles and Rights at Work of the InternationalLabor Organization, the Ten Principles of the UN Global Compact(UNGC) and other international standards, as well as relevantregional regulations in various regions. The company also refersto the norms of the Foxconn Industrial Internet Corporate SocialResponsibility Code of Conduct and the Supplier Guiding Principles,and takes actions consistent with the Responsible Business AllianceCode of Conduct (RBA) to ensure that the company comply with thecommitment to human rights in conducting business globally. Thecompany has conducted multiple training sessions related to laborand human rights policies, including onboarding training coveringlabor and human rights, general CSR training and special trainingon the Corporate Social Responsibility Code. During the reportingperiod, the coverage rate of human rights training for new recruitsand all employees (including contract employees, labor dispatchemployees and campus security personnel, etc.) is 100%.Fii conduct regular labor protection (human rights due diligence)audits every year and complete a Self-Assessment Questionnaire(SAQ) in accordance with the RBA audit guidelines. In 2022, thescope of implementation includes 16 factories and 20 subsidiarieslegal entities, covering 85% of employees, with 0 critical deficienciesfound in the factories. If compared to the VAP (ValidatedAssessment Program) rating, 92% of the factories shall obtain ascore of 160 (Silver) or above (out of 200).

天津???分综保区???分加工区???分兰考???分周口???分

松江???分

深圳b???分深圳c???分杭州???分

a

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Performance and Appendix

7天 30天14天

90天

关键缺失主要缺失

拟定改善行动计划（CAP）具体行动改善结案

改善结案

改善结案稽核完成拟定改善行动计划（CAP）具体行动

具体行动稽核完成拟定改善行动计划（CAP）

Every year, Fii conducts risk assessment through audits to review the achievement and improvement of variousperformance indicators such as labor, health and safety, environment, and management system to ensure thatthe company fulfills all social responsibilities and that it fully complies with the requirements of the standards.Respect for human rights and work environment rights is deeply rooted in the corporate culture of Fii and coversall stakeholders of our business practices.

Prohibition of child laborIn the document Prohibition of Child Labor Prevention and Misuse Remedies, the company promises not toemploy or support the employment of child laborers under the age of 16. In the recruitment process, we usemulti-modality and multi-round interview methods to comprehensively and prudently evaluate the qualitycharacteristics and ability status of candidates, and conduct background investigations to confirm the authenticityof candidate information in accordance with the law. If department heads discover that the age of workers doesnot match the information provided in their daily work, they should immediately notify the human resourcesunit and implement a remedial plan for misuse of child labor to ensure that personnel engaged in labor in ourcompany receive timely and effective protection.Anti-discrimination and anti-harassmentFii does not tolerate any form of discrimination or harassment (whether physical or verbal), and in order toestablish a friendly work environment and enhance the concept of gender equality among employees. Thecompany has set up a workplace sexual harassment complaint handling committee to continuously monitor andimprove the matter in accordance with the Measures to Prevent, Complaint and Discipline Sexual Harassmentin the Workplace. All discrimination on the basis of race, color, religion, veteran status, national origin, ancestry,pregnancy status, gender, age, marital status, mental or physical disability, medical condition, sexual orientation orany other legally protected grounds is not permitted. The company treats every employee without discriminationand all employees have equal opportunities for employment, training, and promotion and enjoy the samebenefits as the company.

Anti-Forced LaborFii is committed to not using and not supporting the use of any form of forced labor. We have fully controlled therisks of modern slavery labor such as offsetting labor, using prisoner labor, human trafficking, collecting deposits,seizing documents or property, restricting personal freedom, withholding or defaulting on wages and benefits,forcing overtime, and restricting separation from employment through a regulated employment mechanism toensure that all employment relationships are based on a voluntary basis. As of the end of the reporting period,the company had no incidents related to forced labor, harassment and abuse, or employment of child labor.

Upholding the right to free association andcollective bargainingFii has incorporated democratic management, democratic participation and democratic supervision into itsimportant agenda. In order to safeguard the legitimate rights and interests of employees, build harmoniouslabor relations and promote the long-term stable development of the enterprise, the company has formulatedrelevant documents such as Freedom of Association and Procedures for Joining Trade Unions and ReligiousManagement and Regulations for the Management of Trade Union Membership, and established trade unions inaccordance with laws and regulations, and deliberated on the contents of formulating, modifying or deciding onmatters relating to labor remuneration, working hours, rest and leave, labor safety and health, insurance andwelfare, employee training and other matters directly When rules and regulations or major matters involvingthe immediate interests of employees, they should be discussed by the staff representative assembly or allemployees, put forward proposals and opinions, and be determined through equal consultation with staffrepresentatives. During the implementation of rules and regulations and major matters, employees have the rightto propose any inappropriate ones and modify and improve them through legal procedures, so as to effectivelyguarantee the democratic rights of employees to participate in management and major decisions, research anddeliberation. We can better play the role of the Staff Council, regulate the behavior of the Staff Council, protectthe democratic rights of the staff, safeguard the legitimate rights and interests of the staff, protect, mobilize andbring into play the enthusiasm and creativity of the staff, and promote development.In order to smooth the channels for employees to express their opinions and protect their rights, the companyfully collects employees’ opinions and suggestions on various aspects of the company’s work through variousforms such as holding regular employee seminars, setting up communication mailboxes and hotlines, andurges relevant functional departments to respond and give feedback in a timely manner, so as to finally protectemployees’ rights to information, participation, expression and supervision. Up to now, the collective contractemployee coverage rate is 100%, the total number of staff talks and communication is 245, 10,416 participants,7,446 cases of employee care, and 100% of completed processing responses.

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Performance and Appendix

Human rights risk prevention planRisk issuesObjectAchievementsRisk mitigationRemedial measuresAppeal channel

Free choice ofemployment

Allemployees

? Comply with RBA guidelinesfor free choice employment

? New employees sign employment contracts and completeorientation training in accordance with the law? Provide RBA training courses? Publish employee manuals and resignation applicationoperating system processes and connect personnel

? If an employee’s application for separation is blocked,the human resources unit or labor union shall interveneimmediately to coordinate and follow the employee’s wishes.? The supervisor shall give training on labor laws andregulations

? WeChat official account? Voice of employees? Union mailboxProhibitionof child laborand protection

of underage

workers

Newemployees

? Establishment thePrevention and MisuseRemedial Measures forProhibiting Child Labor,promising not to hire orsupport the employment ofchildren under the age of 16

? Hiring process in accordance with local regulations and legalage identification at global sites

? Regular audits to ensure timely detection of child laborentering the company due to false identities or any otherreasons? Proper handling of child labor incidents and provision ofassistance/remedial measures

? WeChat official account? Voice of employees? Union mailboxMaternityprotection andhealth of female

workers

Femaleworkers

? Implement leave provisionssuch as maternity andbreastfeeding leave

? Global factories announce and publicize related protectionmeasures and facilities in accordance with local regulations? At least once a year, hold a special employee symposiumfor female employees to promote and provide guidance forimprovement

? If any violation of women’s protection is found, immediatelyrequest the supervisor to improve and return theemployee’s rights and benefits.? Priority audit list for units where such violations haveoccurred

? WeChat official account? Voice of employees? Union mailboxAnti-discriminationand anti-harassment

Allemployees

? Establishment of Measuresto Prevent, Complaint andDiscipline Sexual Harassmentin the Workplace? Establishment of theworkplace sexual harassmentcomplaint handling committee

? Hiring process, recruiting campaign content and recruitingsupervisor training courses in accordance with localregulations at global sites

? If a violation of discrimination, bullying and harassment isfound, immediately request the supervisor to improve andreturn the employee’s rights and benefits.

? WeChat official account? Voice of employees? Union mailboxHumanetreatment

Allemployee

? Publish appeal notices, clarifyhuman rights principles

? At least once a year, all employees are trained on humanrights topics to ensure that all employees are aware andknowledgeable? Adequate and regular dissemination of channels forexpressing opinions and reporting violations

? If there is a violation of human rights protection,immediately request the supervisor to improve and returnthe employee’s rights and benefits.

? WeChat official account? Voice of employees? Union mailboxSalary &Benefits

Allemployee

? Provide livelihood securitymechanism? Set up labor disputemediation committees

? Regular internal salary survey analysis? Conduct salary compliance audits at least once a year

? Upon investigation, if there are any violations of salaryand welfare payments or delays, immediately request thesupervisor to improve and return the employee’s due rightsand interests

? WeChat official account? Voice of employees? Union mailboxWork time

Allemployee

? Develop of Work Rules andEstablishment of hourly paysystem

? Regular statistical analysis and audit of working hours status? Utilize HR system and employee self-service platform toprovide early warning management mechanism such asworking hours report

? If there is any violation of working hours management orforced labor, the company shall immediately request thesupervisor to improve the situation and return the rightsand benefits to the employees, and put the company on thepriority audit list if it has happened before.

? WeChat official account? Voice of employees? Union mailboxFreedom ofassociation

Allemployee

? Establishment of the Freedomof Association and Unionizationand Religious ManagementProcedures

? Global factories in accordance with local regulations, theformation of trade unions and the free participation ofemployees in the union to strengthen welfare activities,employee rights protection and emergency relief projects toattract employees to participate

? If there is any violation of freedom of association, thecompany shall immediately ask the supervisor to improvethe situation and return the rights and benefits to theemployee.

? WeChat official account? Voice of employees? Union mailbox

? Visits? Legal publicity? Lawyers in companies? Visits? Legal publicity? Lawyers in companies? Visits? Legal publicity? Lawyers in companies? Visits? Legal publicity? Lawyers in companies? Visits? Legal publicity? Lawyers in companies? Visits? Legal publicity? Lawyers in companies? Visits? Legal publicity? Lawyers in companies? Visits? Legal publicity? Lawyers in companies

? Company website? Care hotline? Seminar? Company website? Care hotline? Seminar? Company website? Care hotline? Seminar? Company website? Care hotline? Seminar? Company website? Care hotline? Seminar? Company website? Care hotline? Seminar? Company website? Care hotline? Seminar? Company website? Care hotline? Seminar

? Labor DisputeMediationCommittee

? Women workers’Committee oftrade union? Establish aworkplace sexualharassmentappeal handlingcommittee?Unit supervisoror administrativedepartment

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Performance and Appendix

事业单位绩效目标达成

助力员工成长

集团战略

·半导体

·数位医疗 ·元宇宙

通识类·CSR/ESG

·企业文化·资讯安全

·反贪污·时间管理·外语能力

·职业道德·健康卫生·员工素养

·CoC

·规章制度

·工业安全

·ISO认证·HR管理师·六西格玛·绿能/碳排

·自动化技术·Karakuri·数据分析

·机器·物联网·信息采集

Employee training anddevelopment

Fii closely focuses on business development, increases training efforts, innovates training methods, expandstraining channels, and continuously improves training for all employees such as new employees, in-serviceemployees, transferred personnel, and promoted cadres. Through diverse projects and targeted trainingfor various departments and positions, it enhances organizational and professional management abilities,and combines theory with practice to help the healthy development of the enterprise. In 2022, the companystrengthened the overall planning of education and training, comprehensively promoting the transformationand upgrading of training. Through systems such as the Group Education and Training Policy, Internal LecturerManagement Measures, and On the Job Education Management Measures, the company fully tapped the workpotential of existing personnel, formulated talent resource development plans, management objectives, andtraining plan implementation plans.

Employee training system

As the speed of knowledge and technology updates accelerates, companies need to continuously train theiremployees in order to continuously innovate and introduce new ideas. The Human Resources Center developsannual company training plans based on work planning, business demand sources and training demand surveys.The training content includes TTT training (Training the Trainer to Train) and internal instructor certification,practical safety leadership and employee academic upgrading training to create a good ecological environmentfor talent development. In addition, the company relies on the online learning platform to help employeesimprove on-the-job training, skills upgrading and transition training, etc., and encourages employees to learnindependently to achieve the integration of learning, practice and examination, which effectively meets the needsof all employees for rapid learning and fragmented learning.

Elite Class Training CampCase

As a special training program to cultivate key reserve cadres and reserve talents for key positions,the Elite Class Training Camp aims to help new school recruits learn working methods, improveprofessionalism and successfully complete the rapid transformation from students to workingprofessionals. Combined with the development strategy of the enterprise, the training camp isbased on the idea of “characteristic practice, professional support, systematic output and brandingempowerment”, and is equipped with a complete induction training program, covering threedimensions of professional skills, management skills and professionalism, based on the constructionof the core literacy ability model, using The training method of “course cultivation + internshipexperience + activity expansion”, the coaching mechanism of “class teacher + mentor + coach +expert group”, together with 180 days of tracking and assessment and multi-channel coaching andcommunication mode, cultivate people who adapt to and identify with the company culture and havegood professionalism and development potential. We train young talents with good professionalismand development potential. Under the operation of this talent training mechanism, the retention rateof the elite class will reach 90.5% in 2022.

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Promoting school-enterprise cooperation to help employees growFocus on Digital, Cultivate Talents

Hongwan leads the way, cultivates handsome talent

Let “obstacles” go, let love come

CaseCase

Case

Case

In order to improve the professional skills of the company's employees, Industrial Fulian hascollaborated with Shenzhen College of Continuing Education for Employees and Guangdong Vocationaland Technical College of Transportation to establish modern apprenticeships in fields such asmechatronics and IoT technology, cultivating electrical engineers, electromechanical installation anddebugging personnel, IoT installation and debugging personnel, and industrial robot maintenancepersonnel. The teaching staff mainly come from professors from cooperative universities and seniorengineers and technical experts of the company. The students are mainly ordinary frontline employees.Employees learn in their work and work after learning. After graduation, they not only obtain auniversity graduation certificate, but also corresponding skill certificates.

Fii continues to promote a series of professional talent training projects. Based on the needs ofvarious talent development, in 2022, it will carry out the "four modernizations" training plan forintelligent manufacturing, including lean, automation, informatization, and intelligence, and providea hybrid learning method both online and offline. At the end of the reporting period, 45 offline talentdevelopment training sessions were conducted, with a total of 421 participants; 106 special trainingsessions with 1910 participants; There are approximately 70000 online participants.

In order to better cultivate management cadres, Fii has developed and polished a series of leadershipcourses with great corporate characteristics. The training content is centered on five major sections:

cultural values, business management, problem solving, innovative thinking and benchmarking visits.As of the end of the reporting period, two training courses for senior executives were organized.

In order to meet the communication needs of special employees, to help employees master basicsign language communication skills, to improve the language level of front-line managers, to narrowthe communication barriers, to build a bridge with deaf people, to improve communication and workefficiency, and to train more sign language enthusiasts or instructors to realize barrier-free services, Fiilaunched a sign language training on June 24, 2022. The participants mainly came from the staff relatedto the work of hearing-impaired employees (production line team leader, human resources, laborunion, general affairs, employee care group, etc.) and those who are interested in sign language.

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Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

Compensation and Promotion

The company strengthens the construction of talent echelons, provides equal career promotion opportunitiesfor all employees, and conducts annual assessments on all employees in a fair and scientific manner (atleast six months of employment). And promote employee levels based on assessment results to promoteemployee career development. In order to create a high-performance culture and promote the principle offair performance management, we have clarified the operational process and implementation methods ofperformance management in the Employee Handbook, Salary and Welfare Operation Regulations, EmployeePromotion Management Operation Standards, Salary, Performance Assessment, Promotion Operation Standards,and Performance Assessment and Incentive Constraint Guidelines Operation Standards. The level of performanceevaluation is directly linked to job adjustment, education and training, salary and benefits, and bonus verification.The evaluation items include work performance, attendance status, work ability and development potential, teamcooperation (dedication, social orientation, etc.), in order to effectively motivate employees.In the performance management system, the company sets annual KPIs based on the company’s strategic goalsat the beginning of each year and decomposes them down to each employee. Based on personal self-assessmentand direct supervisor ratings, the company comprehensively evaluates the individual's performance level (A+/A/B/C/D) into five levels. Employees can submit whether to accept the assessment results through the performancesystem. If they have any objections to their own performance, their superiors will provide timely feedback. At thesame time, regular and fair performance evaluations are conducted every year, and performance evaluations areintegrated into promotion work to effectively identify outstanding talents and achieve precise motivation.According to employees’ personal wishes, career growth needs and annual performance appraisal results, wemake personal development plans. We continue to improve internal promotion, internal competition, exchangespace and other mechanisms to accelerate the growth of employees. In terms of promotion, the companyhas reasonably planned the development space of employees based on the principle of “developing talentsand reserving talents”. The company has formulated the Code of Practice for Staff Promotion Managementto standardize the two-way career development channels for management and technical professionals, withcorresponding system guarantees and incentives to meet the common development needs of employees andthe company, so that technical talents have the opportunity to develop into experts in the field and managementtalents have the opportunity to develop into managers, realizing the professional and diversified development ofthe talent team.

Long-term incentive mechanism

Short-term incentive mechanism

Equality between men and women

In order to create a benefit-sharing mechanism between employees and owners, achieve consistency inthe interests of the company and employees, attract and retain outstanding management talents andcore cadres, and enhance employee cohesion and the company’s competitiveness, the company willcontinue to launch an employee stock ownership plan in 2022, covering a total of no more than 12,000people, in order to continuously improve the comprehensive remuneration system and optimize theremuneration distribution system to motivate and retain the company’s key talents, further stimulateemployees’ enthusiasm and creativity, and ensure the achievement of the company’s long-termstrategic goals.

The company is committed to providing employees with market-competitive compensation andbenefits, and a short-term compensation incentive mechanism linked to performance bonuses andbonus awards. The company also sets up a variety of internal awards for employees, such as excellentstaff and excellent management staff selection and recognition, continued service award, continuousservice award and proposal improvement award, etc., to motivate employees from both spiritual andmaterial dimensions, and promote long-term retention and development of employees.

In terms of fixed salaries, the company provides salaries that are better than the local minimum wagein accordance with labor laws, and the ratio of male to female salaries is close to 1:1, and sets standardsalary scales for different positions and skill levels according to the local living standards and industrymarkets, and issues fixed salaries to protect the livelihood of employees. In terms of salary changes, inaddition to year-end bonuses, incentive bonuses are distributed according to established goals eachyear. The company allocates a certain amount of surplus as performance bonuses in combination withemployee performance payments, in order to stimulate employees' work enthusiasm and improve theoverall competitiveness of the company.IndicatorUnit2022

Promotion of senior managers%31Promotion of mid -level managers%24Professional and technical personnel promotion ratio%19[Statistical caliber] Different levels of promotion ratio statistical caliber only includes domestic companies that contain the above levelclassification (high -level managers, middle management personnel, professional and technical personnel).

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员工直系亲属慰问金

（?,???-??,???元）

困难员工救助金 （?,???-??,???元）医疗救助金

（门诊最高报销比例达??%）

员工互助金

法定社会保险

新婚祝福金 （???元）

员工住院慰问金 （???元）

优秀员工走访慰问金

（喜报+???元）丧葬慰问金

（???元）干细胞捐献慰问金 （??,???元）

尽最大努力

满足员工美好生活需要

Talent attraction and retention

Employee Welfare and CareFii is committed to creating a comfortable office environment and a warm working atmosphere for its employees,and attaches importance to humanistic care for their physical and mental health, work balance and workexperience. In addition to the statutory benefits, Fii provides a welfare system that is better than the statutorystandards, including a series of health benefits, holiday benefits, growth benefits and flexible office, etc. Inaddition to the statutory benefits, Fii provides a diversified welfare system that is better than the statutorystandards, including a series of health benefits, holiday benefits, growth benefits and flexible office, etc., so thatemployees can really feel the temperature of home.The welfare projects of the company's factories in Mainland China and Vietnam are led by the labor union, andthose in Taiwan are led by the workers' welfare Committee. Other areas are handled in line with local laws andregulations. All kinds of welfare projects shall cover 100% of all employees. In addition, employee insurance,retirement allowance and pension are handled in line with local national and regional laws and regulations,covering 100% of all employees.

Child education support

Employee sympathy activities

Case

Case

In order to support the pre-school education of employees’ children, Fii actively works as a bridgebetween employees and kindergartens, extensively collects employees’ opinions and suggestions, andplans to establish Zhuole kindergarten in Shenzhen factory. At present, more than 60% of the childrenenrolled in the kindergarten are children of employees from various units in the park, which helpsemployees solve the conflict between work and family care to the greatest extent.

In order to continuously care for the working and living conditions of employees with disabilities, todemonstrate the Group’s corporate culture of “love, confidence and determination”, to reflect thecompany’s people-oriented business philosophy and to build a more harmonious labor-managementrelationship. In 2022, the company conducted quarterly activities to show its care for employees, witha total amount of about RMB 6.2 million. At the same time, to enrich the after-work life of disabledemployees, the company also held a series of fun activities to care for disabled employees.

“5+6+1” living guarantee mechanism

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In order to unite the centripetal force of employees, each department forms a “love each other” group, andorganizes small and diversified caring activities such as recreation and sports, fun excursions, friendship andfriendship, birthday celebrations, team development, etc. with the “love each other” group as the unit. Weestablish a sound system of employee care, encourage employees to cultivate hobbies, enhance physical fitness,actively organize various employee activities, respond to employee needs, improve employee satisfaction inmultiple dimensions, and enhance employees’ sense of belonging and identity to the company.

Spring Festival activitiesEntertainment activities

Parent-child activitiesLibrary

Dance rehearsal hallGym

Caring for female employees

Over the years, the female workers committee of the labor union has been caring for female workers fromvarious aspects, actively building a platform for female workers to build their career, comprehensively improvingthe comprehensive quality of female workers, and giving full play to the important role of female workers as “halfof the sky” in production, R&D, management and post-service. We will continue to pay attention to the rights andinterests of domestic and foreign female workers, actively implement leave provisions such as maternity andbreastfeeding leave, provide equal career development opportunities, and ensure that female workers enjoy non-discriminatory pay and benefits. We will also continue to innovate welfare forms and increase the care servicesfor female employees. Through organizing colorful March 8 Women’s Day activities, guiding female workers toimprove their cultural cultivation, and actively creating a series of mommy courses for pregnant mothers such asbaby-sitter, nursery nurse and pediatric massage many initiatives.

Mommy’s CabinCase

The company has a mother and baby room to effectively provide more humane and warm servicesfor female employees during pregnancy and breastfeeding, providing them with a private, clean,comfortable and safe resting place.

Goddess Festival flower arrangement activityTalent courses

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Employee Communication

Reasonable improvement suggestions or opinions can help companies improve their management andproduction efficiency, promote the strategy of reducing costs, winning with quality, and focusing on marketdevelopment. Fii values employee satisfaction, happiness, and participation. In order to listen to employees'voices, the company provides precise and comprehensive services, continuously expands employee demandchannels, and enhances feedback information.The company identifies and evaluates key factors that shall affect employee satisfaction and motivationthrough multiple channels, aiming to create a better quality and positive work-life environment for employees.Comprehensive communication channels have been established, such as the 78585 Care Hotline, the 25858Mindfulness Hotline, the Employee Care Center and 26 channels for the protection of employees’rights.“Voice of employees” speaks for employees

Intervention at thesource and counseling at the heart

Case

Case

In order to further improve the welfare ofemployees, listen to the voices, smooth thechannels for appeals, timely understand theopinions and suggestions of employees, andsolve the problems and difficulties raised byemployees. The “Voice of Employees” column isopened to facilitate employees to express theopinions and improve the enthusiasm to makesuggestions.

In order to further promote the excellent corporate culture, Fii has established the online and offlineintegrated EAP (Employee Assistance Programs) care and counseling service to solve practical problemsfor employees by strengthening humanistic care and employee psychological guidance, so as to guideemployees’ healthy growth, work enthusiasm and happy life. The program focuses on four perspectivesof paying attention to employee psychology, caring for employee health, caring for employee life, andhelping employees grow, in order to enhance employee psychological capital, promote employeephysical and mental health, enhance employee psychological belonging, and ultimately improvecorporate management effectiveness.

The Company conducts an annual employee satisfaction survey and strives to be relevant to the needs ofemployees. During the reporting period, the employee satisfaction survey, with a valid sample of 35,002, hada sampling ratio of 15%. In order to better understand employees’ thoughts and demands and to facilitatecomprehensive improvements, the sample size of the 2022 employee survey was increased by 0.5% comparedto 2021, and the scope of the survey was increased to include overseas plants, with a final weighted averageemployee satisfaction score of 8.06. The survey results show that employees are generally confident in the futureof the company and have significantly higher ratings in the dimensions of “job recognition”, “teamwork” and“compensation and benefits”.

Marriage and family mediation room

Spiritual relaxation room

Emotional catharsis room

Sand table game room

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Performance and Appendix

Occupational health and safetyUnder the strategic guidance of “data-driven and green development”, Fii focuses on high-end manufacturingfields such as 5G and network communication equipment, smart phones and smart wearable devices, andmanufacturing plants have been highly industrialized. In the context of global technological upgrading anddifferential regulations in multiple regions, the implementation of many new technology-driven technologies, newmaterials and new energy structures will generate new occupational health andsafety issues, including:

New processes, technologies and materials bring new OHS risksHighly industrialized production clusters OHS risksRapid development and uneven development of OHS management systemUnder the guidance of the EHS policy of “compliance with laws and regulations, safety and health for people,energy saving and consumption reduction for development, and sustainable development for excellence”, thecompany adheres to the basic idea of people-oriented, protects legal rights and interests, cares for physicaland mental health, strengthens occupational health and safety management, builds a talent developmentsystem, realizes the occupational development concept of employees’ peace of security, peace of mind, andpeace of career, and actively fulfills its corporate social responsibility, and is committed to becoming a model ofoccupational health and safety management for global technology manufacturing enterprises.Safety management system

In accordance with domestic laws and regulations, such as the Law of the People’s Republic of China on WorkSafety and the Law of the People’s Republic of China on Prevention and Control of Occupational Diseases, andwith reference to overseas occupational health and safety standards and regulations, FII has established anEnvironmental Health and Safety (EHS) management system, and in May 2022, updated the Fii EnvironmentalHealth and Safety (EHS) Management Manual. The manual requires the construction of an EHS work structurewith “strong leadership and organization, departmental supervision and management, effective risk management,orderly participation of all employees, and continuous improvement”, and clearly stipulates the vision, objectives,concepts, prohibitions and other management elements of EHS. The management elements are clearly defined,covering all employees.

Practice of felt leadership is the key to implement EHS performanceRisk control and comply with regulations is the guarantee of EHS performance

Good EHS performance is the foundation of a company’s sustainable development

EHS philosophy

Who is responsible for whose business; Who is responsible for whose territory; Who isresponsible for whose position

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工业安全卫生单位环保暨能源管理单位

HSE

HSE委员会主任

各事业群分支HSE委员会

各事业处HSE管理小组分支HSE委员会执行组

决策

执行

规划

Fii管理总处

财务总单位、法务智权单位人力资源暨总务行政单位

企业永续发展规划单位采购单位、资讯管理单位

Business group management team: Direct management of the EHS work of the units under its jurisdiction.

Supervising and guiding the EHS work of the units under its jurisdiction, ensuring that the EHS objectives ofthe organization are achieved and assuming management responsibility for the EHS performance of the unitsunder its jurisdiction;

Business division/plant operation management team: responsible for the daily EHS management of this

business division/plant, implement the EHS management requirements of the superior units, and assume themain responsibility for the EHS work of this unit;

EHS teams at all levels: supervise and guide the daily EHS work of the unit, provide professional advice to

the management team of the organization, and support the achievement of EHS management objectives;

Employees: learn and comply with the company’s EHS management system and perform the EHS

responsibilities of the positions.

During the reporting period, the total number of the company’s safety committee was 9,348, of which workerrepresentatives totaled 6,486, accounting for 69.38% of the total number of the safety committee; the companyinvested a total of RMB 375 million in environment, safety and health; conducted 2 EHS committee meetings,which reviewed the 2022 annual management report of each subcommittee; improved 12 safety managementsystem documents; conducted 69 Fii Global Prevention and Safety Production and ESG Action Meetings;conducted 3 regular communication meetings of Fii industrial safety professional line; 33 companies withproduction activities under FII’s mainland have passed ISO45001 certification.

By formulating and implementing a globally unified EHS policy, Fii will build up the core competitiveness ofcorporate EHS and build a world class high-tech manufacturing enterprise. To achieve our vision of becominga global EHS management model for technology manufacturing enterprises, we are committed to responsiblemanagement of all business activities.The EHS policy is applicable to all organizational units under the jurisdictionof Fii, and their daily operation activities should be in line with the requirements of this policy, and organizationsat all levels must be consistent with this policy when formulating EHS policies.We have established a dual prevention mechanism based on our management manual, a central EHScommittee with a director responsible for overall decision making, an EHS committee office and Fii managementheadquarters responsible for planning, and EHS committees in each business group under our headquartersresponsible for implementation and auditing in the plants under their jurisdiction. We aim for “zero injury,zero loss, and zero pollution” to minimize risks and actively provide a safe and healthy working environmentfor our employees. EHS management committee at each level: responsible for establishing the company’s EHSmanagement policy and objectives, formulating EHS management policies, and studying and solving major EHSissues;

Total number of security committee(people)9,348

total number of the safetycommittee

69.38

%

Total annual environmental, safety andhealth investment (billion)

3.75

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领导力和承诺

方针和目标

监视、评估

纠正不符合项

持续改进

支持和运行

Plan

Check

ActionDo

EHS管理体系的

预期成果

内外部环境分析

相关方的需求和期望Safety Risk Prevention and Control

The main hazardous and harmful factors of Industrial Fulian and its subordinate production enterprises includemechanical injury, chemicals, noise, dust, X-ray (X-ray), etc. In 2022, Fii will further improve its safety managementsystem, We have released five management documents, including the EHS Committee Management System, FiiSafety Education and Training Management System, Fii Change Operation Management Code, Fii Human-causedHazard Prevention Management System, and 26 risk control technical documents, including the ImplementationGuidelines for Industrial Safety Risk Grading and Control, the Comprehensive Risk Assessment and ManagementGuidelines for Occupational Disease Hazards, the Chemical Management Policy, and the Lithium Battery SafetyManagement Specification, to comprehensively improve the level of occupational health and safety risk preventionand control, gradually eliminate human factors, and continuously strengthen intrinsic safety.In terms of occupational health and safety risk assessment, Fii has formulated management documents such asComprehensive Risk Assessment and Management Guide for Occupational Disease Hazards, which adopts a semi-quantitative assessment method to conduct hazard level (HR) assessment and exposure level (ER) assessment,and then determine the occupational health risk index (R), and formulate and implement occupational diseasehazard control measures according to the risk level for continuous improvement.In terms of safety risk control, Fii has formulated internal systems such as Comprehensive Risk Assessment andManagement Guide for Occupational Disease Hazards and Implementation Guide for Industrial Safety Risk Gradingand Control, combined with the “PDCA” working model, to assist each plant to identify, analyze and evaluate risksin existing processes, public facilities and natural disasters, and formulate risk response measures according torisk levels.Fii has taken multiple measures to improve the safety risk control system and enhance the intrinsic safety levelthrough chemical substitution (such as using water-based cleaning agents instead of organic solvents) andautomated mechanical DFMS (reducing mechanical injuries from the design side); assisted the developmentof safety digital intelligence by implementing projects such as remote auditing, industrial safety cloud, IOTdemonstration workshop, and cloud infrared thermal imaging electrical hidden danger investigation; improvedindustrial ventilation in the pilot plant in Quang Chau, Vietnam and Longhua, Shenzhen to improve exposure tochemical and other occupational hazards; the IOT demonstration workshop to set up a digital application modelhas been completed by 60%; the industrial ventilation improvement in the pilot plant has been completed by30%.

PDCA (Plan-Do-Check-Act) working model

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Conduct electrical safety training, etc.Case

In December 2022, Fii’s Industrial Safety & Health Division organized external experts to conductelectrical safety training and infrared thermography inspection training, and organized on-sitediagnostics.

Launch meeting site

Site survey of Longhua G18-1F molding workshop

Electrical safety training site

Site survey of Longhua E6-4F high voltage distribution room

With the safety goal of “zero injury, zero occupational disease and zero accident”, Fii has formulated internalregulations such as the Rules for Management of Occupational Accidents of the Group, clarified the process ofinvestigation of injury accidents and determination of responsibility for accidents, and classified injuries intoserious injuries (serious consequence occupational injuries), minor injuries and slight injuries according to theClassification Standard for Occupational Injuries of the Group, the formulated management system of work-related accidents is strictly implemented. At the end of the reporting period, there are no work-related accidentsinvolving employees and contractors; the percentage of employees covered by the internally audited occupationalhealth and safety management system is 100%; and the percentage of employees covered by the externallyaudited occupational health and safety management system is 100%.Safety Training

The theme of the 2022 National Work Safety Month is “Obey the Work Safety Law, Be the First One to TakeResponsibility”, and Fii has always emphasized that “Environmental health is the responsibility of each employee,and each employee is responsible for his or her own business, position and local EHS. “One of the key factors toensure safe production is to strengthen employee safety education and training. Each employee needs to receiveappropriate safety education and training. The training includes interpretation of safety laws and regulations,job practice, accident case sharing, emergency drills and on-site disposal to achieve the purpose of improvingthe safety and technical quality of employees and enhancing their safety awareness. We carry out different typesof training for employees at different entry stages. New employees focus on Basic Knowledge of OccupationalHealth Management”, while in-service employees need to learn Knowledge of Occupational Disease Preventionand Management, Individual Protection and Occupational Health Medical Examination. In addition to the jobsafety training required by regulations, the following new training topics have been added to accommodate theenhancement of the overall safety system in order to achieve a high standard of safety performance:

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Training objectivesTraining themeTraining objectives / outcome outputs

Improve safety training

mechanism

Level 3 safety education

training courses

Update the level 3 security training course of the

FXCONNEDU

Building a dual preventionmechanism

Safety production doubleprevention system training

Promote the use of dual control systems

Establish safety audit team

Safety inspection and audit skills

training

Safety audit system improvement and audit team

capacity enhancementCarry out BBS safetyculture

Job safety observation andcommunication training

BBS capability improvement for team leaders and

other first-line supervisors

Special improvement ofESG chemicals

Product hazardous substancemanagement training

Harmful substance management processoptimization, products meet customer

requirementsElectrical safety capabilityimprovement

Infrared Thermography training

Infrared thermography inspection capabilityimprovement for first-line supervisors and othersConduct occupationalhazard assessment

Occupational disease hazard riskassessment and management training

Occupational health on-site audit and self-

assessment of each unit

Automated mechanical safety management and overall

improvement strategy training

Fire safety management standard training

Global emergency management mechanism trainingIndustrial ventilation principles and practices training

During the reporting period, Fii Industrial Safety & Health Division organized nearly 30 hours/year of occupationalhealth and safety training for employees per capita; the company implemented safety main education 10 times;organized safety training and promoted the implementation of safety training assessment 5 times.Safety auditIn order to standardize the internal auditing of occupational health and safety, Fii has formulated policydocuments such as Management Measures of Occupational Health and Safety Auditing, which clearly defines theobjectives, scope, frequency, form and scoring and rating methods of auditing, and requires the audit resultsto be linked with the safety assessment mechanism. As the supervisory department of safety audit, IndustrialSafety & Health Division of Fii performs safety audit of production plants, sets safety performance KPI, establishessafety assessment mechanism, and evaluates the safety status of each plant. According to the regulations,internal health and safety audits are conducted at least once every 1-2 years to identify problems and suggestimprovements in a timely manner, eliminate potential safety risks and improve the factory’s occupational healthand safety management system.Since Fii’s industries are spread all over the world, traditional on-site audit operations are easily affected byphysical distance, epidemics, personnel, cost and other factors. In order to facilitate real-time management by thecentral EHS committee office, the company has established a remote audit system for production safety hazardsas a supplement to on-site audits to eliminate errors and enhance audit efficiency in a more effective way. Whencarrying out remote auditing work, it is divided into two working modes: [live auditing] and [virtual room] fordifferent levels of on-site information confidentiality. Non-special insurance and other general areas (such asboiler room, high voltage power room, oil depot, chemical warehouse, general workshop) take the form of liveauditing, according to the audit plan set in the time, length, point to dynamic viewing / checking. Special securityareas and other areas where customers have requirements that cannot access the live screen take the form of[virtual room], and the system terminal auditors enter the [virtual room] to review information and extract auditevidence.Based on the results of the audit, we have identified that the main safety challenge facing Fii is fire. Due tothe presence of a large number of electrical devices in the factory, there is a potential risk of fire caused byelectrical appliances. Based on the fire safety assessment, Fii promotes the installation of the “skyside” fire safetymonitoring system during the reporting period, improved the protection capability of the fire protection systemin the power distribution room, and investigated the hidden dangers of the power supply and distribution systemand electrical appliances to minimize the potential fire safety hazards.

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????

~????

????????????????

探索期导入期深化期持续

安全领导力培训BBS理念及系统培训BBS试点单位推行

(电子段/机构段实施推行)

BBS E化系统上线处级及以上主管定期执行

(?次*?hrs/月; ??项/月)

推行至课组级主管

(?次*?hrs/月;??项/月)BBS纳入BU主管绩效考核试行伙伴观察BBS专案实施

????至今

高阶主管安全领导力培训查看自动堆高机操作位置检查办公区域延长线问题建置BBS E化系统深化BBS推动联络单

Core ?:

有感领导(上行下效、兵随将转)

Core ?:

全员参与

(行为安全、绩效管理)衔接机制Top-DownBottom-up

“Skyside” security management system

During the reporting period, Fii’s Industrial Safety and Health Division completed audits of 18 parks, involving126 buildings, and found a total of 211 fire safety hazards, with a 96% completion rate of rectification, and theremaining items are being rectified according to schedule, and all rectification is scheduled to be completedby September 2023. A total of 4133 items of infrared thermal imaging detection and electrical hazardtroubleshooting are completed in 16 factories, 119 Electrical safety hazards are found, and the completion rateof rectification was 100%; The Group’s central industrial safety audit department completed annual industrialsafety audits of all mainland plants under Fii’s jurisdiction and found 189 hidden dangers, with a 100% completionrate of rectification; each business group completed internal monthly hidden danger inspections and found27,497 hidden dangers, with a 100% completion rate of rectification; (above) a total of 28,016 safety auditrecommendations are made, with a 99.9% completion rate of rectification. In addition, plans have been made topromote 100% coverage of the Skyside fire safety monitoring system, and to enhance the protection capabilitiesof the fire protection systems in five power distribution rooms in the factory area, as well as conduct on-siteinspections and evaluations for damage prevention, which is planned to be completed by September 2023.

Occupational healthmanagement

According to the requirements of the safetymanagement system, Fii develops countermeasuresfor different risks to prevent, control and eliminateoccupational hazards and ensure all employees fullyenjoy the rights and interests of occupational health.In addition, Fii implement behavior observationand communication mechanism in the dailymanagement. Managers shall praise safe behaviorsand observe, communicate or intervene on unsafebehaviors. The results of safety observation andcommunication will be statistically analyzed tostrengthen safety behaviors with positive incentives,timely detection and correction of unsafe behaviors,avoiding injuries and accidents, and achievingcontinuous improvement of safety performance.

Progress Schedule of “BBS” Behavior Observation and Communication Mechanism

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We eliminate or reduce the risk of occupationalhealth and safety as much as possible byimplementing special management measures:

posting risk factor identification notice boards inareas with risk sources to remind employees to dothe corresponding safety protection work; settingup First Aid (first aid box) areas in workshops andupdating relevant drugs and medical supplies in realtime to ensure that employees get treatment at thefirst time of injury; setting up protective shields inareas with risk of mechanical injury to distinguishsafety zones from danger zones; carrying out regularenvironmental monitoring in workshops; assessingand testing occupational hazards, etc. In termsof enhancing employees’ awareness of personaloccupational health protection, Fii carry out the “Allfor the Health of Workers” Occupational DiseasePrevention and Control Law Publicity Week tofurther strengthen the implementation of the mainresponsibility of occupational disease prevention andcontrol, effectively protect the rights and interestsof workers’ occupational health, create a strongatmosphere of concern for occupational diseaseprevention and control and occupational healthawareness throughout the company, and improveworkers’ health level. During the reporting period,on-site audits of occupational health managementwork were completed in 7 factories.Occupational Disease Prevention andControl Law Awareness Week is held inthe last week of April every year

Publicity on the public website ofoccupational health of Fii

Identification of occupational hazard risk factors

Fii regularly carry out staff medical checkups every year, and for production workers with different exposurefactors, Fii will conduct “pre-job, job, and post-job” medical checkups in accordance with local regulations, andfor cases with occupational contraindications found in the medical checkups, the company always takes healthas the first priority, fully respects the wishes of employees, and actively coordinates compensation measuressuch as transferring to other jobs. To reduce the risk of occupational diseases as much as possible. In additionto regular occupational disease medical checkups, the company has developed a diversified annual routinemedical checkup program according to the rank and position of employees to help employees identify changesin the health. During the reporting period, there was one health case of occupational disease-related problems inmainland China.

The noise hazards in the workshop are identified, noise occupational disease hazard notification cards are set toinform the hazards, and the noise value is reduced from more than 90dB to more than 70dB after the workplacetransformation through the overall sound insulation cover (with acoustic cotton inside), punching machine andreinforce and reduce vibration of sound insulation cover and ground.

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Human-machine safety design

The safety level is enhanced by optimizing the design of safety components and safety circuits. Safetycomponents include emergency stop switches, enabling devices, safety protection control and limited space,interlock protection; safety circuits include protective stop, multiple redundant control, cross detection, faultdiagnosis, motion parameter limitation, etc.

Emergency disposal

While organizing safety training for employees/suppliers, in order to enhance the ability to deal with majoremergencies, the company conducts many accident case seminars, safety production activities, emergencyresponse to major accidents (including: CSR major accident notification guidelines, meteorological disastermanagement methods, etc.), fire safety emergency drills and other practical training, and each production unitprepares corresponding emergency plans according to regulatory requirements (including: Fire and explosionaccident emergency plan, limited space accident special emergency plan, special equipment accident specialemergency plan, chemical leakage accident special emergency plan, dust explosion accident emergency plan,etc.), and regularly conduct drills. Through diversified control measures, the behaviors of employees/suppliersin the production workshop are effectively regulated, production safety is promoted, safety awareness of all isenhanced, and the purpose of “training instead of training” is realized, which helps to improve the emergencyhandling ability of employees/suppliers in the face of potential dangerous situations and minimize the losscaused by accidents. The company has perfect emergency preparedness and response control procedures, andhas developed an emergency management platform and a safety complaint platform to achieve online approvaland disposal in a timely manner, which greatly reduces the response time and saves valuable time for emergencydisposal.According to the requirements of the regulations and combined with the development needs of the companyitself, Fii closely follows the theme of “Grasp fire safety, ensure high-quality development”. In 2022,30 factoriesunder Fii have overcome the impact of the epidemic, combined with the company’s emergency plans, carriedout more than 60 fire emergency drills activities in various forms. The activities include “emergency evacuation,fire extinguishing, high-altitude rescue, practical fire-fighting, first aid, fire science popularization, etc”, whichcreates a strong fire safety atmosphere throughout the company, effectively enhancing the fire safety awarenessof company employees, improving the accident response ability of the enterprise’s emergency response team,,strengthening the emergency linkage mechanism with the government firefighting team, and strengthening thecompany’s safety foundation. Fully ensure the safety of employees’ lives and property, as well as the safe andstable development of the company.

ForewordPioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

Regular emergency drills conducted by factories under its jurisdictionCase

Emergency drill at Lankao Campus

Emergency drill at Chengdu campusFire safety management standard training

ForewordPioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

Independent Verification Statement

ForewordPioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent VerificationStatement

Performance and Appendix

ForewordPioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governancepractitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

Performance and Appendix

Key Quantitative Performance Table◎?Supply chain management

◎?Technology Innovation

1. [Statistical caliber] Some subsidiaries have not counted the category “other” in accordance with the number of suppliers divided by the region; the

statistical caliber of supply chain data in 2022 includes factories in mainland China, Taiwan, India, and overseas business groups.

IndicatorUnit202020212022

R&D investment in science and technology innovationBillion100.38108.35115.88Cumulative number of validly applied for and granted patents

cs-5,5046,078

Cumulative number of clean technology patentscs5878041147

2. [Statistical caliber] The patent statistical caliber of effective application and authorized scientific and technological innovation in 2020 is different from

2021 and 2022. It is difficult to retrieve data again, so it is not disclosed.◎?Employee employment

3. [Statistical caliber] Fii 2022 Annual Report Merge Financial Report caliber

IndicatorUnit202020212022

Total number of key suppliersNumber661996301Divided by region

Suppliers in Chinese mainlandNumber574671212Hong Kong, Macao, Taiwan and overseas suppliersNumber8727574OtherNumber05015

Key supplier SERmanagement

Number of key suppliers that have passed ISO14001environmental management system

Number-417173Number of key suppliers that have passed OHSAS18001(or ISO45001) health management system

Number57278116Number of SER risk assessments among key suppliersNumber546493211Number of suppliers with SER risk assessment asmedium to high risk among key suppliers

Number1659259Number of suppliers who have completed on-site auditsof the above medium-high risk suppliers mentionedabove

Number1158058Number of suppliers that have completed rectification(closure of deficiencies) after on-site audits of the abovesuppliers

Number1076958Number of key suppliers audited by third parties (such asRBA certified organizations)

Number-157104New supplier SERmanagement

Total number of new suppliersNumber18130154Number of new suppliers audited with environmentaland social standards

Number786123Percentage of new suppliers audited with environmentaland social standards

Percentage39%66%79%

IndicatorUnit202020212022

Total number of employees

Number196,159191,970199,073Divided by gender

MaleNumber117,323114,331118,033FemaleNumber78,83677,63981,040Divided by age group

<30years oldNumber79,27773,82064,86130-50years oldNumber113,128115,303129,679>50years oldNumber3,7542,8474,533Divided by business region

Chinese MainlandNumber155,534151,198151,764Hong Kong, Macao,Taiwan, and overseas

Number40,62540,77247,309Divided by educational level

DoctorNumber115100115MasterNumber3,7113,5563,711BachelorNumber21,00420,57721,004Junior college or belowNumber171,329167,737171,329Total number of newemployees

Number42,96544,27650,096Divided by gender

MaleNumber26,10228,40130,298

FemaleNumber16,85315,87619,798Divided by age group

<30 years oldNumber29,72431,63834,410

30-50 years oldNumber12,87312,30815,274

>50years oldNumber376363466

ForewordPioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

4.[Calculation method] Employee loss rate = During the year, the number of employees lost in this category/(the number of employees at the end of

the year + the number of employees lost during the year)IndicatorUnit2022年

Promotion of senior managers%31Promotion of mid -level managers%24Professional and technical personnel promotion ratio%19

[Statistical caliber] Different levels of promotion ratio statistical caliber only includes domestic companies that contain the above level classification (high-level managers, middle management personnel, professional and technical personnel).

6.[Calculation Method] The return rate of job return = total number of male (female) sex employees who return to the job after the end of the parenting

leave/The total number of men (women) who should return to the job after the childcare leave is*100%;

7.[Calculation Method] Research rate = The total number of men (women) who returned to posts at the end of the reporting period/the total number

of male (female) employees who returned after the childcare leave during the reporting period was*100%.

◎?Employee health and safety

◎?Employee training

IndicatorUnit202020212022

Employee Sports Inspection Coverpercentage100%100%100%Number of work injurySecond-rate173278102The mortality caused by work injury

People/Million Workers Moster-0.0040Severe consequencesTimes/Million Workers Moster-0.0580Recording work injury rateTimes/Million Workers Moster0.420.560.16The working hours lost due to work injuryHour-120,2169,448

Note: 8. [Statistics caliber] Fii headquarters and communication and mobile network equipment business groups, cloud computing business groups,and industrial Internet business groups.

9. [Explanation of the mortality caused by work injury] The work injury accident of this data statistics is a commuting traffic accident outside the factory;

the company has continued to promote traffic safety knowledge to employees in the past, and will strengthen safety publicity and strengthen employeesafety awareness.IndicatorUnit202020212022

Statistics according to the employment categoryHigh -level managersh84.298.386.3Middle managerh66.677.286.5Ordinary managerh60.870.073.8General staffh39.738.646.0

Statistics by employmentmaleh53.556.461.6femaleh42.747.853.7The number of human rights trainingNumberh200,096165,211231,543Human rights training Total timeh423,416336,943460,487.5

10.[Statistical caliber] Training statistics for employees who have worked for more than 6 months

IndicatorUnit202020212022

Employee turnover rate

Unit202020212022Divided by gender

Male%-23.6920.43

Female%-25.2727.55

IndicatorUnit202020212022The total number of employees who enjoy maternity leaveand accompanying maternity leave

Number168,351164,793182,938Among them, the number of accompanying leavemaleNumber4,0643,65210,404Among them, the number of maternity leavefemaleNumber4,8884,4767,954The total number of employees returning to the job after theholiday

NumberNumber7,36917,674Among them, the number of returns after the holidaymaleNumber4,1383,63010,349Among them, the number of returns after the holidayfemaleNumber3,9143,7397,325Return rate6%99.34%99.39%99.42%The total number of employees who stayed in 12 monthsafter returning to the job

Number6,7226,03612,355Among them, the number of employees who stayed for 12months after returning to the job

maleNumber3,7463,3137,135Among them, the number of female employees who stayedfor 12 months after returning to the job

femaleNumber2,9762,7235,220Retention rate7%84.04%82.41%70.31%

ForewordPioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

IndicatorUnit202020212022

Information security training field numberfield-6,783142Information security training number

Number of people-434,418121,939

Information security training hours

Hour788,403538,398134,900.1

Anti -Corruption TrainingNumber of people415,174388,548343,090Anti -corruption training timeHour475,636421,605465,198.9

11, 12. [Statistics caliber] The number of information security training and the time of the privacy protection statistics of the Fii 2021 Enterprise SocialResponsibility Report last year. Since information security training includes privacy protection training, the actual data should be larger than thestatistical data.◎?Environment

13. [Statistical caliber] Green power from 2020 and 2021 was purchased by various factories, which is difficult to retrieve data, so it is not disclosed.

◎?Social welfare

IndicatorUnit202020212022

Total social public welfare investmentTen thousand yuan2,861.2613,622.95868.08Public welfare investment funds and supplies

Ten thousand yuan2,67413,495794.80

Village revitalization investment

Ten thousand yuan18713473.28

Volunteer participantsNumber42,59731,16834,338Employees have accumulated volunteer service durationh2913,266153,383

14.[Statistics caliber] From 2020-2021 Social Welfare Data adopts data statistical caliber of the Fii 2021 Enterprise Social Responsibility Report.

15, 16.[Statistics caliber] Fii 2022 Annual Report Consolidated Financial Report caliber.

IndicatorUnit202020212022

A range of greenhouse gas emissionstCO

e57,297.5258,965.7572535.17

Range 2 (position -based) greenhousegas emissions

tCO

e1,695,144.892,104,551.962076055.77

A range of gas emissionstCO

e10,957,075.4213,231,717.5822643436.58Total amount of greenhouse gasemissions (range 1, 2, 3)

tCO

e12,709,517.8315,395,235.2924792027.52Greenhouse gas emissions intensity(range 1 and range 2)

tCO

e/ Billion406492420Direct energy

gasolineL287,427.89545,183.67338373.95diesel fuelL403,522.76639,262.12647573.27natural gasmillion Nm

1,961.222,102.032,634 .41Indirect energy

electricitykw/h2,649,770,644.463,317,366,440.923,585,950,711.12steamkw/h162,993,262.47173,996,259.13145,239,581.24heatGJ145,933.29183,637.03193,968.38Renewable EnergySolarMkw/h23,48640,55638,131Green power

10000kw/h--6,258Total energy consumptionGWH

11160254.84

13775332.8013,870,946.76Energy consumption strengthGJ/billion revenue258531342710

IndicatorUnit202020212022

Total waterMt21.1224.1724.13

General industrial solid waste-Quantityt1039531474388290829-Dy recycling cyclet914721297348145042

ForewordPioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

Direction chart◎?GRI Sustainable Development Report Standard (GRI Standards)content indexInstructions for use

Fii concluded from the GRI standard preparation report from January 1, 2022 toDecember 31, 2022GRI 1 usedGRI 1: Base 2021GRI industry standard usedUnused industry standards

GRIstandard

Disclosure itemReport chapter

Omittedreason

explainGeneral disclosureOrganizationand itsreportingpractice

2-1 Organization and its reporting practiceV. About Fii2-2 Integrated into the entity that is includedin the organizational sustainable developmentreport

I. About this report2-3 Reporting period, report frequency andcontact person

I. About this report2-4 Information reunionI. About this report2-5 External verificationI. About this reportActivity andworker

2-6 Activity, value chain and other businessrelationships

V. About Fii2-7 staff

XIII. People-oriented

employer2-8 Workers outside employees

XIII. People-oriented

employer

Governance

2-9 Governance architecture and composition11.1 Corporate governance2-10 Nomination and selection of the highestgovernance agency

11.1 Corporate governance

2-11 Chairman of the Supreme GovernanceInstitution

11.1 Corporate governance

GRIstandard

Disclosure itemReport chapter

Omittedreason

explain

Governance

2-12 In terms of management influence, thesupervision role of the highest governanceinstitution

11.1 Corporate governance

2-13 Liability for management impact11.1 Corporate governance2-14 The role of the highest governanceagency in the sustainable development report

11.1 Corporate governance

2-15 Conflict11.1 Corporate governance2-16 Communication of important concerns11.1 Corporate governance2-17 Common knowledge of the highestgovernance agency

11.1 Corporate governance

2-18 The performance assessment of thehighest governance institution

11.1 Corporate governance

2-19 Salary policy11.1 Corporate governance2-20 Determine the procedure of salary11.1 Corporate governance2-21 Annual total salary ratioOmitted

Confidentialrestriction

InformationconfidentialityDemand, not forthe time beingDisclosure

Strategy, policyand practice

2-22 Statement on sustainable developmentstrategies

Ⅱ.Executive speech2-23 Policy commitment

VI.Sustainabledevelopment management2-24 Integration policy commitment

VI. Sustainabledevelopment management2-25 Remedial program with negative effects11.5information security2-26 Seeking a mechanism for suggestionsand making concerns

VI.Sustainabledevelopment management2-27 Abide by laws and regulations

VI. Sustainabledevelopment management2-28 Member qualifications of the association

III. Fii2022IV.Social recognition andhonor

ForewordPioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

GRIstandard

Disclosure itemReport chapter

Omittedreason

explain

Strategy, policyand practice

2-29 How to participate in stakeholdersparticipating

VII. Analysis of thecommunication andsubstantial issues ofinterests related to thestakeholders2-30 Collective negotiation agreement

13.3 Human rights

protection

Substantive issue

Substantiveissue2021

3-1 The process of determining substantiveissues

VII.Analysis of thecommunication andsubstantial issues ofinterests related to thestakeholders3-2 List of substantive issues

VII. Analysis of thecommunication andsubstantial issues ofinterests related to thestakeholdersTopicEconomicperformance2016

3-3 Management of substantive issues

11.2 Economic

performance201-1 Economic value that directly generatesand distributes

Omittednot applicable

Data andinformation havebeen organized inthe organization ofthe organization ofthe organizationEconomic

201-2 The financial impact of climate changeand other risks and opportunities

9.1 Copy climate change

Economic

201-3 Volunteer fixed welfare plan and otherretirement plans

13.5 Talent attraction and

retention201-4 Fiscal subsidies given by thegovernment

Omittednot applicable

Data andinformation havebeen organized inthe organization ofthe organization ofthe organization

GRIstandard

Disclosure itemReport chapter

Omittedreason

explain

Marketperformance2016

3-3 Management of substantive issues

13.3 Human rights

protection

13.4 Employee training and

development202-1 The ratio of salary at the level of genderstandards to the minimum wageof the local

13.3 Human rights

protection

13.4 Employee training and

development202-2 The proportion of hiring executivesfrom local communities

Omitted

Confidentialrestriction

InformationconfidentialityDemand, not forthe time beingDisclosure

Indirecteconomy2016

3-3 Management of substantive issues

11.2 Economic

performance203-1 Infrastructure investment andsupportive services

Omittednot applicable

Data andinformation havebeen organized inthe organization ofthe organization ofthe organization203-2 Major indirect economic impactOmittednot applicable

Data andinformation havebeen organized inthe organization ofthe organization ofthe organizationProcurementpractice 2016

3-3 Management of substantive issues

10.1 Sustainable supply

chainProcurementpractice 2016

204-1 The proportion of purchasingexpenditures from local suppliers

Omitted

Confidentialrestriction

InformationconfidentialityDemand, not forthe time beingDisclosureAnti-corruption2016

3-3 Management of substantive issues11.6 Business ethics205-1 Operation points that have beenevaluated by corruption risk

11.6 Business ethics

ForewordPioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

GRIstandard

Disclosure itemReport chapter

Omittedreason

explain

Anti-corruption2016

205-2 The transmission and training of anti-corruption policies and procedures

11.6 Business ethics

205-3 The recognized corruption incident andthe actions taken

11.6 Business ethics

Impropercompetition2016

3-3 Management of substantive issues11.6 Business ethics206-1 Legal lawsuits for impropercompetition, anti -Torais and antitrustpractice

11.6 Business ethics

Tax 2019

3-3 Management of substantive issues11.4 Tax strategy207-1 Tax11.4 Tax strategy207-2 Tax governance, control and riskmanagement

11.4 Tax strategy

207-3 Participate in stakeholders andmanagement of tax -related issues

11.4 Tax strategy

207-4 National reportOmittednot applicable

Data andinformation of eachtax jurisdiction havebeen presented inthe organization ofthe annual reportof the organizationMaterials 20163-3 Management of substantive issues8.3 Green product

Materials2016

301-1 The weight or volume of the materialused

Omitted

Lack ofinformation

Organizationinvolves manybusiness sections,and the typesof feed arecomplicated.301-2 Recycled feedingOmitted

Lack ofinformation

Organizationinvolves manybusiness sections,and the typesof feed arecomplicated.

GRIstandard

Disclosure itemReport chapter

Omittedreason

explain

Materials2016

301-3 Recycling products and its packagingmaterials

8.3 Green product

Incompleteinformation

Organizationalspecific productsuse recyclablematerials, but ithas not countedthe percentageof renewablematerials underdifferent productscategories

Energy2016

3-3 Management of substantive issues9.4 Energy management302-1 Energy consumption inside the tissue9.4 Energy management

302-2 Organize external energy consumptionOmitted

Lack ofinformation

There are too manybusiness segmentsand links involvedin the organization,and it is difficult tocount the actualexternal energyconsumption302-3 Energy strength9.4 Energy management302-4 Reduce energy consumption9.4 Energy management

302-5 Reduce the energy needs of productsand services

8.3 Green product

Lack ofinformation

The organizationcan reduce energyconsumption byimproving theenergy efficiencyperformanceof specificproducts, butdue to customerrequirements, it isimpossibleWaterresources andsewage 2018

3-3 Management of substantive issues

9.5 Water resources

management303-1 Organization and water (as a commonresources) interaction

9.5 Water resources

management303-2 Management is related to drainage

9.5 Water resources

management

ForewordPioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

GRIstandard

Disclosure itemReport chapter

Omittedreason

explain

Waterresourcesand sewage2018

303-3 Take water

9.5 Water resources

management

Incompleteinformation

Organizationcurrently onlycounts the totalamount of water,and does notaccording to thesource of thesource303-4 drain

9.5 Water resources

management

Lack ofinformation

Uncover statisticaldrainage data303-5 Water consumptionOmitted

Lack ofinformation

Unexpected waterconsumption data

Biologicaldiversity2016

3-3 Management of substantive issues9.9 Ecological Protection304-1 Organization, leasing, and operatingpoints of regional management of biologicaldiversity in outside the protected area andprotected areas

9.9 Ecological Protection

304-2 Activities, products and services have asignificant impact on biodiversity

9.9 Ecological Protection

304-3 Protected or repaired habitatOmittedNot applicable

Organizationalvenue does notinvolve a habitatfor protected orrepaired304-4 The habitat affected by operation hasbeen included in the IUCN red list and thespecies of the national protection register

OmittedNot applicable

Organizingbusiness activitiesdoes not involvespecies that isincluded in theIUCN red list andnational protectionregisterEmission2016

3-3 Management of substantive issues9.1 Copy climate change305-1 Direct (Category 1) Greenhouse gasemissions

9.1 Copy climate change

305-2 Energy indirect (category 2) greenhousegas emissions

9.1 Copy climate change

GRIstandard

Disclosure itemReport chapter

Omittedreason

explain

Emission2016

305-3 Other indirect (category 3) greenhousegas emissions

9.1 Copy climate change

305-4 Greenhouse gas emissions intensity9.1 Copy climate change305-5 Greenhouse gas reduction reduction

9.2 Greenhouse gas

emissions management305-6 Ozone consumable substance (ODS)emissions

Omitted

Incompleteinformation

Incompleteinformation305-7 Nitrogen oxides（NOX）、sulfuroxides（SOX）and other major gas emissions

Omitted

Incompleteinformation

Statistical diameterchanges, the totalamount cannot becounted for thetime being

Abandon2020

3-3 Management of substantive issues9.6 Abandon306-1 The major impact of waste productionand waste -related

9.6 Abandon

306-2 Management of major waste relatedinfluence

9.6 Abandon

306-3 Waste9.6 Abandon306-4 The waste transferred from thedisposal

Omitted

Incompleteinformation

Statistical diameterchanges, the totalamount cannot becounted for thetime being306-5 Directly processed wasteOmitted

Incompleteinformation

Statistical diameterchanges, the totalamount cannot becounted for thetime beingSupplierenvironmentalassessment2016

3-3 Management of substantive issues

10.1 Sustainable supply

chain308-1 New supplier using environmentalstandards

10.1 Sustainable supply

chain308-2 The negative impact of the supply chainon the environment and the actions taken

10.1 Sustainable supply

chain

ForewordPioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

GRIstandard

Disclosure itemReport chapter

Omittedreason

explain

Hire 2016

3-3 Management of substantive issues13.2 Diverse employee401-1 New Employee and employee flow rate13.2 Diverse employee401-2 Welfare provided to full -timeemployees (excluding temporary or part -timeemployees)

13.5 Talent attraction and

retention401-3 Parenting leave

13.5 Talent attraction and

retentionLabourRelations2016

3-3 Management of substantive issues

13.3 Human rights

protection402-1 The shortest notification period foroperation changes

13.3 Human rights

protection

Occupationhealth andsafety 2018

3-3 Management of substantive issues

13.7 Occupation health

and safety403-1 Occupational health and safetymanagement system

13.7 Occupation health

and safety403-2 Harm recognition, risk assessment andevent investigation

13.7 Occupation health

and safety403-3 Occupational health service

13.7 Occupation health

and safety403-4 Occupational health and safety affairs:

workers’ participation, negotiation andcommunication

13.7 Occupation health

and safety403-5 Workers’ occupational health andsafety training

13.7 Occupation health

and safety403-6 Promote worker health

13.7 Occupation health

and safety403-7 Prevent and reduce the impact ofoccupational health and safety directly relatedto business relations

13.7 Occupation health

and safety403-8 Workers who are applicable to theoccupational health and safety managementsystem

13.7 Occupation health

and safety403-9 Work injury

13.7 Occupation health

and safety

GRIstandard

Disclosure itemReport chapter

Omittedreason

explainOccupationhealth andsafety 2018

403-10 Work -related health issues

13.7 Occupation health

and safety

Training andeducation2016

3-3 Management of substantive issues

13.4 Employee training and

development

15.1 Key quantization

performance table404-1 Each employee receives the averagehour of training each year

13.4 Employee training and

development

15.1 Key quantization

performance table404-2 Employee skills improvement plan andtransition assistance scheme

13.4 Employee training and

development404-3 Employee percentage of employeeswho regularly accept performance and careerdevelopment assessment

13.4 Employee training and

developmentOpportunitiesfordiversificationand equality2016

3-3 Management of substantive issues13.2 Diverse employee405-1 The diversification of governanceagencies and employees

13.2 Diverse employee

405-2 The proportion of basic salary andremuneration of men and women

13.3 Human rights

protection

13.4 Employee training and

developmentAnti-discrimination2016

3-3 Management of substantive issues

13.3 Human rights

protection406-1 Disclosure and correction actionadopted

13.3 Human rights

protectionFreedom andcollectivenegotiations2016

3-3 Management of substantive issues

13.3 Human rights

protection407-1 The right of freedom of association andcollective negotiations may face risk operationpoints and suppliers

13.3 Human rights

protectionchild labor2016

3-3 Management of substantive issues

13.3 Human rights

protection

ForewordPioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

GRIstandard

Disclosure itemReport chapter

Omittedreason

explain

child labor2016

408-1 Operation points and suppliers withrisks of major child labor incidents

13.3 Human rights

protectionForced orforced labor2016

3-3 Management of substantive issues

13.3 Human rights

protection409-1 Operation points and suppliers withmajor risks with compulsory or mandatorylabor incidents

13.3 Human rights

protectionSecuritypractice2016

3-3 Management of substantive issues

13.3 Human rights

protection410-1 Security personnel who havereceived training of human rights policies orprocedures

13.3 Human rights

protectionAboriginalrights 2016

3-3 Management of substantive issues

12.3 Participate in

community public welfare411-1 Event inviting the rights of aboriginalpeople

Organization does not

involve infringement of the

rights of aboriginal people

Localcommunity2016

3-3 Management of substantive issues

12.3 Participate in

community public welfare413-1 There are operation points for localcommunities to participate, affect assessmentand development plans

12.3 Participate in

community public welfare413-2 Operating points that have practicalor potential negative effects on localcommunities

Organization does not have

any actual or potential

major negative effects on

the local community

SupplierSocialEvaluation2016

3-3 Management of substantive issues

10.1 Sustainable supply

chain414-1 New suppliers using social standards

10.1 Sustainable supply

chain414-2 The negative impact of the supply chainon society and the actions taken

10.1 Sustainable supply

chainPublic policy2016

3-3 Management of substantive issuesOmittedNot applicable

Not applicable inmainland China415-1 Political donationOmittedNot applicable

It is not involvedwithin the scope ofthe organization

GRIstandard

Disclosure itemReport chapter

Omittedreason

explain

Customerhealth andsafety 2016

3-3 Management of substantive issues

8.3 Green product

8.5 Customer relationship

management

416-1 Evaluation of the health and securityeffects of products and services

8.3 green product

8.4 Product quality and

safety

Incompleteinformation

Organize therequirements andtesting system ofcomprehensiveproduct harmlessdesign, but noimportant productshave been foundto improve safetyperformance416-2 Violations involved in the impact ofhealth and security of products and services

OmittedNot applicable

No related eventsare found in theorganizationMarketingand logo2016

3-3 Management of substantive issuesOmittedNot applicable

Organization hasthe nature of OEM,and the productlabel informationis based onthe content ofthe customer’sdisclosure417-1 The requirements for product andservice information and logo

OmittedNot applicable

Organization hasthe nature of OEM,and the productlabel informationis based onthe content ofthe customer’sdisclosure417-2 Violations involved in product andservice information and logo

OmittedNot applicable

No related eventsare found in theorganization417-3 Violations involved in marketingOmittedNot applicable

No related eventsare found in theorganizationCustomerprivacy 2016

3-3 Management of substantive issues11.5 Information security418-1 Certified complaints related toinfringing customer privacy and loss ofcustomer information

8.5 Customer relationship

management

ForewordPioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

◎?Shanghai Stock Exchange’s Shanghai Stock Exchange Listed Companies Self -Regulatory Guide No. 1 -Regulations Operation (2022) benchmarking index

Terms and disclosure contentReport chapter

8.1 ReviewVI.Sustainable development management

8.2 Business principleVI.Sustainable development management

8.3 Social responsibility planning and working mechanismVI.Sustainable development management

8.4 Contribution value per share society11.2 Economic performance

8.5 Social responsibility report disclosure situationFull text

8.6 (1) Social responsibility system constructionVI.Sustainable development management

8.6 (2) Perform the shortcomings and problems of social responsibilityVI.Sustainable development management

8.6 (3) Improvement measures and specific time arrangementsVI.Sustainable development management

8.7 Employee Director and Employee Supervisor Selection System11.1 Corporate governance

8.8(1) Comply with environmental protection laws, regulations and industry

standards

9.3 Environmental management

8.8(2) Environmental protection plan

9.3 Environmental management

9.9 Ecological protection

8.8 (3) Natural resources

9.4 Energy management

9.5 Water resources management

8.8(4) Pollutant disposal

9.5 Water resources management

9.6 Waste management

9.7 Exhaust management

9.8 Chemical management

8.8(5) Pollution prevention facilities

9.5 Water resources management

9.6 Waste management

9.7 Exhaust management

8.8(6) Payment of taxes and fees related to environmental protection9.3 Environmental management

8.8(7) Supply chain environment is safe10.1Sustainable supply chain

8.8(8) Other environmental protection responsibilities9.9 Ecological Protection

Terms and disclosure contentReport chapter

8.10(1) New, renovated, expanded construction projects or major

investment

Not applicable

8.10(2) Violation of environmental laws and regulations and punishment9.3 Environmental management

8.10 (3) Major lawsuits or assets of environmental issues are seized, frozen,

seized, pledged, and mortgaged

9.3 Environmental management

8.10 (4) List of key sewage discharge units9.3 Environmental management

8.10(5) Newly promulgated laws and regulations, etc.9.3 Environmental management

8.10(6) Major events of environmental protection9.3 Environmental management

8.11 Major environmental pollution accident9.3 Environmental management

8.12 Key sewage discharge units should disclose information9.3 Environmental management

8.13(1) Product safety laws and regulations and industry standards

8.3 Green product

8.4 Product quality and safety

9 Environmental protection advocate

8.13(2) Production environment and production process

8.3 Green product

8.4 Product quality and safety

8.13 (3) Product quality and safety guarantee mechanism and accident

emergency plan

8.3 Green product

8.4 Product quality and safety

8.13(4) Other production and product safety responsibilities

8.3 Green product

8.4 Product quality and safety

8.14(1) Employee management system and illegal treatment measures13.3Human rights protection

8.14(2) Preventing professional hazards and supporting security measures13.7 Occupation health and safety

8.14 (3) Employee training13.4 Employee training and development

8.14 (4) Responsibilities of other employee rights and interests13.7 Occupation health and safety

8.15 Scientific ethics8.2 Innovative management

ForewordPioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent Verification

Statement

Performance and Appendix

If convenient, you are welcome to provide personalinformation

Name/Work Unit/Industry：

Telephone number/Email:

Reader feedback

Dear readers: Hello!Thank you for reading this report. In order to improve the company’s sustainable development work and enhance its ability and level, we are especially interested in listening to your comments and suggestions. We kindly request thatyou evaluate our report during your busy schedule to help us make continuous improvements to the report. We would appreciate your assistance in completing the relevant questions raised in the following feedback form and providingus with feedback on:

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Our contact information:

Address: 2nd Floor, Building C1, Foxconn TechnologyPark, No. 2, Donghuan 2nd Road, Longhua Street,Longhua District, ShenzhenTel: +86-755-33855777Email: fii-csr@fii-foxconn.com

ForewordPioneers of innovation

Advocate of environmental

protection

Responsible procurement

force practitioner

Sustainable governance

practitioner

Social value creatorPeople-oriented employer

Independent VerificationStatement

Performance and Appendix

Report Access:

You can download the electronic copy of this report from the website of the Shanghai StockExchange (www.sse.com.cn) and the website of Fii (www.fii-foxconn.com).

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