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1、About this Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability GovernanceCare for Employees and Work TogetherGreen Production and Environmental ProtectionResponsible Procurement and Win-win CooperationCommunity Contribution and Original AspirationAppe

2、ndixAbout this ReportThis is the 2021 Sustainability Report of Luxshare Precision Industry Company Limited.The report focuses on the ideas,important progress,work summary and future plans of Luxshare Precision and its subsidiaries in terms of sustainable development.Preparation BasisThis report is p

3、repared in accordance with the Global Reporting Initiative(GRI)Standards,and it also takes reference to the CSR Guideline for Listed Company issued by the Shenzhen Stock Exchange,the UN Global Compact,ISO 26000:Guidance on Social Responsibility and concerns from international Environmental,Society a

4、nd Governance(ESG)rating agencies such as MSCI.This report is finalized by identifying important stakeholders,analyzing and rating material issues related to sustainable development,making decisions on the scope of the report,as well as collecting,summarizing,organizing and reviewing relevant data a

5、nd materials in the preparation process.Report Scope and Boundaries Unless otherwise specified,the policies,statements and materials in this report cover the actual business scope of Luxshare Precision and its subsidiaries,which is the same as that of the 2021 Annual Report issued by Luxshare Precis

6、ion Industry Company Limited.Time Period Unless otherwise specified,this report covers the period from January 1,2021 to December 31,2021.Terms Definition For the convenience of expression and reading,“Luxshare Precision”,“Luxshare”,“this Company”,“the Company”and“We”in this report refer to Luxshare

7、 Precision Industry Company Limited and its subsidiaries.Unless otherwise specified,the terms used in this report have the same meanings as those defined in the Companys 2021 Annual Report.Data Source and Reliability StatementAll data used in the report originates from Luxshare Precision Industry Co

8、mpany Limited and its subsidiaries.The board of directors of the Company is responsible for the truthfulness,accuracy,and completeness of this report.Confirmation and ApprovalThis report was approved by the eighth meeting of the fifth board of directors for release on April 27,2022.Access to this Re

9、port You can access the electronic version of this report through the following website:https:/www.luxshare- this Report022021 Sustainability ReportAbout this Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability GovernanceCare for Employees and Work To

10、getherGreen Production and Environmental ProtectionResponsible Procurement and Win-win CooperationCommunity Contribution and Original AspirationAppendixIn 2021,facing a complex and changing global economic situation coupled with the many challenges brought by the repeated COVID-19 epidemic,all emplo

11、yees of Luxshare Precision worked together to achieve steady business growth.While continuously working on consumer electronics,Luxshare Precision actively developed its business in the communication and automobile sectors,enriched its business and product matrix,and provided stable support for busi

12、ness growth.As an industry leader,we are well aware that the key to achieving sustainable development is to continuously and actively fulfill its environmental,social and governance responsibilities while creating profits.We have always attached great importance to the quality of the companys operat

13、ion and have continuously improved our corporate governance structure and risk management system to resolutely prevent corruption,data security and other business risks.We regulate the business activities of Luxshare Precision and our partners.In pursuit of product quality excellence,we have always

14、regarded product and technological innovation as the core corporate competitiveness and striven to seize the opportunity of in-depth development in every scientific and technological revolution and industrial transformation.Employees are the core source of corporate value creation.Maintaining and de

15、veloping the rights and interests of employees is the important guarantee for an enterprise to continuously create value.By creating Star Factory,we uphold the concept of“Employee Oriented”with highly recognized corporate culture,diversified and inclusive workplace relations,and healthy and safe wor

16、king environment,providing employees with a platform for personal value and growth,and sharing the achievements of enterprise development with all employees.Green and low-carbon development has become an important issue globally.In response to Chinas 30-60 decarbonization goal,we have set ambitious

17、greenhouse gas reduction goals based on the actual conditions of the Company.Continuous efforts have been made in environmental management concerning water conservation,energy conservation,emission reduction and waste reduction,and the use of chemicals is under strict control.The green and low-carbo

18、n design idea has been applied to product design,so as to contribute our strength in building a green and low-carbon production mode and lifestyle based on comprehensive product technological innovation and in-depth precision manufacturing.Luxshare Precision has always carried out commercial coopera

19、tion in a responsible way,worked with global suppliers and customers to build sustainable partnerships together.Through rigorous environmental and social risk management,we strive to urge the suppliers to fulfill social responsibilities,avoid purchasing conflict minerals,and continuously strive to m

20、aintain stable,harmonious and clean partnerships with suppliers and customers.We have forged ahead over the past 18 years and together will build a centennial business.Standing at the intersection of Chinas two hundred-year goals,Luxshare Precision has grown into a leader in the precision manufactur

21、ing industry after 18 years of ups and downs and will continue moving forward.In the future,we will adhere to a diversified innovation path of products,customers and markets,and make our due contribution to building a more beautiful sustainable world.Message from the ChairmanChairman03Wang Laichun20

22、21 Sustainability ReportAbout this Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability GovernanceCare for Employees and Work TogetherGreen Production and Environmental ProtectionResponsible Procurement and Win-win CooperationCommunity Contribution and

23、 Original AspirationAppendixCompany ProfileBasic InformationLuxshare Precision Industry Company Limited was founded on May 24,2004 and listed publicly on the SME board of the Shenzhen Stock Exchange(stock code:002475)on Septem-ber 15,2010.Luxshare Precision mainly provides solutions for high-speed i

24、nterconnection,acoustics,RF antennas,wireless charging,vibration motor,communication base sta-tion related products,and is also a system manufacturer of smart wearable and smart home products.Related products are widely used in consumer electronics,communications and data centers,automotive electron

25、ics fields.Luxshare Precision has developed a complete set of skills for global layout,international production,sales and research and de-velopment operations.With a business presence both domestically and interna-tionally,the Company has established manufacturing bases in Guangdong,Jiangxi,Jiangsu,

26、Anhui,Zhejiang,Taiwan of China,Southeast Asia,Europe,and has set up R&D centers in Guangdong Province,Jiangsu Province,Taiwan of China,the United States and Germany.The products developed,manufactured and sold by the Company are widely used in consumer electronics,communications and data centers,aut

27、omotive electronics and medical fields,covering components,modules and system assembly.The modules are primary acoustic modules,antennas,wireless chargers and vibration motors.In communication and data centers,the Company offers high-speed interconnection,optical modules,heat dissipation modules,bas

28、e station antennas,base station filters and other products.In automotive electronics,the Company focuses on the“blood vessel and nervous system”of vehicles and provides vehicle wiring harnesses,special wiring harnesses,new energy vehicle high voltage wiring harnesses and connectors,smart electrical

29、boxes,road-side units(RSU),telematics control units(TCU)and central gateways.Main BusinessLeading Products Smart speakers TWS wireless headsets smart wearables wireless charging modules 5G routers VR glasses high-speed cables high-speed connectors base station antennas filters optical modules coolin

30、g modules and active cables automotive wire harness special wire harness high-voltage wire harness for new energy vehicles and connector smart electric boxes road-side units(RSU)telematics control units(TCU)central gatewaysConsumer electronicsEnterprise communicationAutomotive electronics042021 Sust

31、ainability ReportAbout this Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability GovernanceCare for Employees and Work TogetherGreen Production and Environmental ProtectionResponsible Procurement and Win-win CooperationCommunity Contribution and Origin

32、al AspirationAppendixDevelopment HistoryIn May,Luxshare Precision Industry Co.,Ltd.was founded.In November,Xiexun Electronic(Jian)Co.,Ltd.was established.In January,Luxshare acquired Boshuo Technology(Jiangxi);In May,Luxshare acquired Lanto Electronic Limited;In June,Luxshare acquired ICT-Lanto Limi

33、ted,and established fully-owned subsidiaries Luxshare Precision Limited and Luxshare Precision Technology Limited in Hong Kong;In September,Dongguan Luxshare Precision Industry Co.,Ltd.was established;In October,Kunshan Luxshare Precision Industry Co.,Ltd.was established.In October,Luxshare acquired

34、 SUK Kunststofftechnik GmbH(Germany);In December,China Securities Regulatory Commission approved Luxshares publicly issued corporate bonds plan;In March,Luxshare acquired Luxshare Electronic Technology(Suzhou)Co.,Ltd.;In August,the 2013 non-public offering stock plan was approved by China Securities

35、 Regulatory Commission;20042005201120132014In January,Luxshare acquired Shenzhen Kertong Industries Co.,Ltd.;In May,Dongguan Luxshare Precision Industry Co.,Ltd.renamed as Dongguan Lide Precision Industry Co.,Ltd.;In June,acquired Dongguan Zhanxu Hardware Co.,Ltd.and it renamed as Dongguan Xuntao El

36、ectronics Co.,Ltd.,completed acquiring FUJIAN JK Wiring Systems Co.,Ltd.;In September,invested in Taiwan Speed Tech Co.,Ltd.,and acquired Zhuhai Win-win Flexible Circuit Co.,Ltd.;In November,renamed Luxshare Precision Industry Co.,Ltd.2012Luxshare became publicly traded as an A-share(Stock Code:0024

37、75)on the Shenzhen Stock Exchange.2010In November,Dongguan Luxshare Precision Industry Co.,Ltd.was established;2015In August,the 2015 non-public offering stock plan was approved by China Securities Regulatory Commission;In December,Luxshare-ICT(Vietnam)Limited was established;In April,Luxshare acqui

38、red Merry Electronics(Huizhou)Co.,Ltd.and Merry Electronics(Shanghai)Co.,Ltd.;In December,Guangdong Luxshare&Merry Electronics Co.,Ltd.was established;In November,the joint venture Changshu Lizhen Intelligent Manufacturing Technology Partnership(limited partnership)was established;In December,became

39、 a shareholder of Wistron Investment(Jiangsu)Co.,Ltd.and Lizhen Technology(Kunshan)Co.,Ltd.In February,increased investment and became a controlling shareholder of Likai Precision Technology(Yancheng)Co.,Ltd.(formerly known as Rikai Computer Accessories Co.,Ltd.)In April,the company increased its ca

40、pital to Rida Intelligent Manufacturing Technology(Rugao)Co.,LtdIn August,Luxshare-ICT(Nghe An)Limited was established;2002 Sustainability ReportAbout this Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability GovernanceCare for Em

41、ployees and Work TogetherGreen Production and Environmental ProtectionResponsible Procurement and Win-win CooperationCommunity Contribution and Original AspirationAppendixLuxshare Precision has implemented a three-level sustainability governance structure featuring“decision-makingplanningexecution”,

42、which consists of the Board of Directors,the Sustainability Development Center and the Sustainability Implementation Team.The Companys sustainability strategy,implementation plan,goals and results are reported to the Board of Directors on a regular basis.Ms.Wang Laichun,Chairman and General Manager

43、of Luxshare Precision,is directly responsible for the Companys sustainability strategy decisions and oversees the progress of related work and goals.Sustainability Governance StructureSustainability Governance StructureDecision-making LevelPlanning LevelExecution LevelDecision-making levelPlanning l

44、evelExecution levelThe main responsibilities of each level are as follows:The decision-making level plans the decision-mak-ing and supervision of the Companys sustainability related issues,regularly listens to the work reports of the Sustainability Development Center,reviews such internal documents

45、as the Sustainability Report,ma-jor ESG events,key ESG plans and systems,and ensures that the sustainable development strategy is aligned with the Companys core strategy.As the main management of sustainability affairs,the planning level is responsible for formulating medium-and long-term sustainabi

46、lity plans of the Company,deploying and tracking the sustainability work prog-ress and reporting to the Board of Directors regularly,and promoting the effective implementation of sus-tainability decisions of the Board of Directors within the Company.The execution level is composed of the Companys of

47、fices,committees,central functional departments,business unit ESG working group and other import-ant internal execution units,and responsible for im-plementing the corresponding work and reporting the implementation and work results regularly as guided and planned by the Sustainability Development C

48、enter and ensuring that the concept of sustainable development is fully implemented in the Companys operations.Board of DirectorsSustainability Development CenterBusiness Unit ESG Working GroupOther Functional and Service DepartmentsHuman Resources Department07Office of the Secretary of the BoardDis

49、ciplinary CommitteeEHS CommitteeCentral Functional DepartmentsInformation Safety Management Department Intellectual Property Management DepartmentCentral PurchasingChairman and General Manager2021 Sustainability ReportAbout this Report Message from the ChairmanCompany ProfileSteady Operation and Eve

50、rgreen BusinessSustainability GovernanceCare for Employees and Work TogetherGreen Production and Environmental ProtectionResponsible Procurement and Win-win CooperationCommunity Contribution and Original AspirationAppendixLuxshare Precision attaches great importance to smooth communication with stak

51、eholders,and has established a regular communication mechanism with stakeholders to actively understand their needs and suggestions,and incorporate the concerns of stakeholders into the strategic decisions of the Company,so as to maximize the common value with stakeholders.Through a review of the va

52、lue chain,we have identified six categories of stakeholders:government and regulatory agencies,shareholders and investors,suppliers and partners,customers,employees,and community.Stakeholder CommunicationStakeholdersMajor ConcernsGovernment and regulatory agenciesCustomers EmployeesCommunityFinancia

53、l performance Corporate governance Risk control compliance Clean technology opportunities Sustainability management matters and return on investment Compliant operations Tax payment according to law Climate change and greenhouse gas reduction Emission management and resource use Open tendering Daily

54、 communication with suppliers Supplier inspection and audit Supplier training and empowerment Survey questionnaires Annual Supplier Conference Product quality Innovative research and development Customer relationship management Climate change and greenhouse gas reduction Online communication platfor

55、ms Customer complaints and return visits Satisfaction surveys Annual and quarterly communication meetings Climate change and greenhouse gas reduction Emission management and resource use Chemical management Environmental protection Public welfare Equality and diversity Health and safety Training pro

56、motion Remuneration and benefitsCorporate culture Supervision acceptanceRegular disclosure Irregular reporting Participation in relevant meetings Information disclosure Complaint hotline Field visits Volunteer activities Regular information disclosureGeneral meetings of shareholdersInvestor exchange

57、 activities Communication hotline and email Survey questionnaires Trade unions Safety education and drills Employee training Employee complaints and requests Staff activities Survey questionnaire Sustainable supply chain Sunshine procurement Supplier management Conflict mineral management Climate ch

58、ange and greenhouse gas reduction 08Shareholders and investorsSuppliers and partnersCommuni-cation ChannelsStakeholders Concerns and Communication Channels2021 Sustainability ReportAbout this Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability Governa

59、nceCare for Employees and Work TogetherGreen Production and Environmental ProtectionResponsible Procurement and Win-win CooperationCommunity Contribution and Original AspirationAppendixFor a more accurate understanding of the needs and expectations of stakeholders,Luxshare Precision has analyzed the

60、 material issues according to the identification,investigation and review process,and evaluated the issues from the two aspects of stakeholders concern and materiality to Luxshare Precision through questionnaires and interviews.The material issues have been taken as the important basis of formulatin

61、g the sustainability strategy for the Company.During the reporting period,we sent survey questionnaires to the six categories of stakeholders mentioned in the section above and received 1,075 valid replies in total.Based on the survey results,stakeholder interviews and field survey information,we id

62、entified 5 highly material issues and 12 moderately material issues and mapped out a matrix of material issues.Material IssuesUpdate the database of material issues based on the previously identified material issues and combined with the Companys business development and peer benchmarking analysis P

63、rioritize the material issues based on stakeholder influence and concerns through online surveys and interviews The Board of Directors approves and confirms the issue identification resultsExamine and review the issue identification process and room for improvementMaterial Issue Analysis ProcessThe

64、importance of LuxshareImportance to stakeholdersHighGreen productProtection of employee rights and interestsEmployee diversity and equal opportunitiesBusiness ethicsCommunity involvementWater resource managementCorporate governance and risk managementEmployee health and safetyEmployee training and d

65、evelopmentEnergy managementProduct quality managementWaste managementInnovative R&DGovernance issuesEnvironmental issuesSocial issuesAddressing climate change and greenhouse gas management1Responsible supply chain management5Chemical management2Talent attraction and retention3Employee health and saf

66、ety4Community involvement18High MaterialityProtection of employee rights and interests6Business ethicsEmployee training and developmentCorporate governance and risk managementWater resource managementInnovative R&DGreen product78951216Moderate MaterialityLow MaterialityIdentification of m

67、aterial issuesStakeholder surveyEvaluation result review09Employee diversity and equal opportunitiesProduct quality managementEnergy managementWaste managementInformation security and privacy protectionInformation security and privacy protectionChemical managementAddressing climate change and greenh

68、ouse gas managementResponsible supply chain managementTalent attraction and retentionHighLow2021 Sustainability ReportAbout this Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability GovernanceCare for Employees and Work TogetherGreen Production and Env

69、ironmental ProtectionResponsible Procurement and Win-win CooperationCommunity Contribution and Original AspirationAppendixCentering on the vision of Connecting the Future with Technology,Luxshare Precision has built its sustainability strategy system based on the stakeholders concerns from the three

70、 dimensions of environmental,society and governance,and formulated sustainable development goals in response to the United Nations Sustainable Development Goals(SDGs)to contribute to the realization of the global sustainability blueprint.Sustainability StrategyESG Management PolicyContinuously impro

71、ve corporate governance structure,enhance the level of corporate governance,follow the requirements of business ethics,build trust with all stakeholders,boost the long-term value of the Company,and pursue sustainable corporate development and business model.Build a harmonious workplace,respect the h

72、uman rights of all employees in each operation venue,establish smooth communication channels,continuously improve the democratic management system,provide diversified development pathways and a sound occupational health management system for employees,and create a harmonious,democratic,safe and comf

73、ortable work environment.Implement the national green development strategy,advance green and low-carbon transformation,reduce waste and increase efficiency,promote green and eco-friendly products and services,help achieve scientific carbon goals,seize clean technology opportunities,and drive green a

74、nd low-carbon development of the whole industry and society.Maintain a benign relationship of mutual benefit,win-win cooperation and common development with suppliers,establish a sound supply chain social responsibility management system,build a green and responsible value chain,and jointly work for

75、 a sustainable future.Scientific governanceDimension of SustainabilityMaterial IssuesSustainable Development GoalsSDGsEnvironmentAddressing climate change and greenhouse gas management Set a GHG emission reduction goal consistent with the scientific carbon reduction goal of a 1.5 pathway Continuousl

76、y increase the proportion of clean energy usedEnergy management Increase investment in energy conservation projects,implement smart energy management,and improve energy utilization Water resources management Improve the utilization rate of water resources,reduce water withdrawal and consumption Prom

77、ote the“zero waste water discharge”practice in factories worldwide to reduce waste water generation and discharge Waste management Implement the principle of reduction,reuse,regeneration and recycling(4R)to improve the utilization rate of resources Promote the“zero waste landfill”practice in factori

78、es worldwide to reduce waste generation and discharge Chemical management Impose strict classified control of all materials,components,finished products and chemicals involved in the production process Continue to eliminate harmful chemicals and gradually reduce all harmful substances in our product

79、s Green product Continue to increase investment in R&D related to green products and clean technology Invest more than RMB 250 million in clean technology research and development in 202210Harmonious and healthResponsible procurementGreen and low-carbon development2021 Sustainability ReportAbout thi

80、s Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability GovernanceCare for Employees and Work TogetherGreen Production and Environmental ProtectionResponsible Procurement and Win-win CooperationCommunity Contribution and Original AspirationAppendixDimen

81、sion of SustainabilityMaterial IssuesSustainable Development GoalsSDGsSocietyProtection of employee rights and interests Value and respect the human rights of all employees at home and abroadEmployee health and safety Eliminate health and safety hazards Achieve“zero work industry casualty incident a

82、nd zero occupational disease”Talent attraction and retention Provide a competitive remuneration plan for all employees Build a team of employees with high satisfaction and engagementEmployee diversity and equal opportunities Build a diverse,inclusive and equal workplace environment Unblock employee

83、complaint channels,and actively carry out employee communications Employee training and development Provide extensive training courses Provide a variety of promotion channelsResponsible supply chain management Carry out responsible procurement to ensure 100%avoidance of conflict minerals Require a c

84、onflict mineral survey response rate of at least 95%from suppliers and commit to implementing all procurement from certified smelters/refineries Initiate green supply chain initiatives to promote environmental and social responsibility among suppliers Community Involvement Maintain good communicatio

85、n with local communities where operations are conducted Actively contribute to local community development and constructionDimension of SustainabilityMaterial IssuesSustainable Development GoalsSDGsGovernanceCorporate governance and risk management Establish a sound corporate governance and internal

86、 control system Conduct regular stakeholder communication through multiple channels Enhance the level of management diversityBusiness ethics Continuously improve business ethics standards and unblock whistleblowing channels Conduct regular business ethics training to build a culture of honest manage

87、ment 100%signing rate of employee integrity commitment Handling rate of business ethics related complaints:100%Product quality management Strengthen the quality management system and continuously improve product quality Provide quality management capability building for suppliers and employees Achie

88、ve“zero major quality incidents”Information security and privacy protection Improve the safe and stable operation level of information systems Strengthen employees awareness of confidentiality,and training on information security and privacy protection Achieve“zero major information security leak,ze

89、ro major information system failure and zero business continuity interruption incidents”Research and Innovation Encourage R&D and innovation in core technologies112021 Sustainability ReportAbout this Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability

90、 GovernanceCare for Employees and Work TogetherGreen Production and Environmental ProtectionResponsible Procurement and Win-win CooperationCommunity Contribution and Original AspirationAppendixLuxshare is committed to maintaining a high level of corporate governance,adhering to the concept of excell

91、ent,stable and effective corporate governance,constantly improving corporate governance methods,standardizing corporate operations,and improving internal control systems to ensure that corporate operations are in line with the long-term interests of the company and all shareholders.Luxshare Precisio

92、n continuously improves the corporate governance system,standardizes the corporate operation through institutional guarantee.Within the reporting period,the Company formulated and continuously improved the Articles of Association,standardized corporate operation,and enhanced its corporate governance

93、 structure in accordance with the requirements of the Company Law of the Peoples Republic of China,the Securities Law of the Peoples Republic of China,the Listing Rules of the Shenzhen Stock Exchange,Guidelines on the Articles of Association of Listed Companies,Governance Guidelines for Listed Compa

94、nies,Shenzhen Stock Exchange Listed Companies Self-Regulatory Guidelines No.1-Standardized Operation of Main Board Listed Companies,and other laws,regulations,and normative documents.We gave full play to the role of general meetings of shareholders,Board of Directors and Board of Supervisors in majo

95、r decision-making,operation management and supervision,and protected the shareholders rights and interests.Corporate GovernanceCorporate Governance StructureGeneral Meetings of ShareholdersBoard of SupervisorsAudit CommitteeCorporate Governance Structure13Directors are elected and appointed in stric

96、t accordance with the conditions and procedures as prescribed in the Articles of Association.At the end of the reporting period,the board of directors consists of 7 directors,three of whom are independent directors.The Audit Committee,the Compensation and Performance Appraisal Committee are composed

97、 of independent directors to ensure that the committees are able to exercise effective independent judgment in the interests of shareholders and the Company as a whole.The Board of Directors convenes the meetings of the Board of Directors and implements the resolutions of the general meetings of sha

98、reholders in strict accordance with the Articles of Association and the Rules of Procedure of the Board of Directors.During the reporting period,the Board of Directors held 10 meetings,and adopted a number of resolutions,including the 2020 Annual Work Report of the Board of Directors,the 2020 Annual

99、 Sustainability Report,the 2020 Annual Report and its Summary,and the Motion on Amending the Articles of Association.The Board of Directors adheres to the principle of meritocracy and diversity,and considers various factors on the selection of candidates,including(but not limited to)age,gender,cultu

100、re,educational background,professional experience,skills,educational background and years of service,to select the best candidate for each position and ensure effective operation.At the end of the reporting period,the Board of Directors was made up of talents with diverse education and professional

101、backgrounds from electronics manufacturing,financial management and law,and women accounted for more than 42%of the Board of Directors members1.Board of DirectorsGender34MaleFemaleAge3435-50 age 50 ageProfessional background214ICTLawFinancialStructure of the Board of Directors Members1 The resumes o

102、f the current directors are listed in the Fifth point,Section Four of the 2021 Annual Report.Board of DirectorsC-suiteStrategy CommitteeCompensation and Performance Appraisal CommitteeNomination Committee2021 Sustainability ReportAbout this Report Message from the ChairmanCompany ProfileSteady Opera

103、tion and Evergreen BusinessSustainability GovernanceCare for Employees and Work TogetherGreen Production and Environmental ProtectionResponsible Procurement and Win-win CooperationCommunity Contribution and Original AspirationAppendixSupervisors are elected and appointed in strict accordance with th

104、e conditions and procedures as prescribed in Company Law of the Peoples Republic of China and Articles of Association.The Board of Supervisors overseas the legal operation of the Company and performance of duties by the directors and senior managers in strict accordance with the Articles of Associat

105、ion and the Rules of Procedure of the Board of Supervisors and convenes the meetings of the Board of Supervisors.During the reporting period,the Board of Supervisors held 10 meetings,deliberated and passed a number of proposals concerning equity incentives,external investment,executive selection,fin

106、ancial information disclosure and other key corporate governance matters,including the 2021 First Quarter Work Report,the 2020 Sustainability Report,the 2020 Annual Report of the Board of Supervisors,and the Motion on the Election of Independent Directors by the Board of Directors.Board of Superviso

107、rsThe Audit Committee,Strategy Committee,Compensation and Performance Appraisal Committee,and Nomination Committee are set up under the Board of Directors,which are responsible for supervising the companys affairs and safeguarding the rights and interests of shareholders and investors.The specialize

108、d committees are responsible for monitoring and reviewing all issues of corporate governance in accordance with the Articles of Association,and report to the Board of Directors on a regular basis.Main responsibilities are as follows:CommitteesResponsibilities of Specialized CommitteesPropose the app

109、ointment or replacement of external auditors Supervise the internal audit system and its implementation Review the Companys financial information and disclosure Review the Companys risk management Review the Companys quarterly,interim and annual reports before they are submitted to the Board of Dire

110、ctorsStudy the selection criteria and procedures for directors and senior managers and offer recommendations Conduct an extensive search for qualified candidates for directors and senior managers Review and offer recommendations on director candidates and senior management candidates Formulate compe

111、nsation plans or programs for directors and senior managers,including but not limited to performance evaluation criteria,procedures and main evaluation systems,as well as major programs and systems for rewards and penalties Organize and evaluate the performance of directors and senior managers Organ

112、ize and carry out research on major strategic issues of the Company,and provide advice to the Board of Directors on investment strategy,development strategy,marketing strategy and other issues Organize and coordinate the preparation of medium-and long-term overall development plans of the Company,an

113、d submit them to the Board of Directors for research and decision-making Investigate and analyze the implementation of major strategic issues,and submit suggestions for improvement and adjustment to the Board of DirectorsAudit CommitteeCompensation and Performance Appraisal Committee14Nomination Com

114、mitteeStrategy CommitteeDuring the reporting period,the Board of Supervisors held 10 meetings2021 Sustainability ReportAbout this Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability GovernanceCare for Employees and Work TogetherGreen Production and En

115、vironmental ProtectionResponsible Procurement and Win-win CooperationCommunity Contribution and Original AspirationAppendixLuxshare Precision standardizes the calling,convening and voting procedures of general meetings of shareholders in strict accordance with the provisions and requirements of the

116、Company Law of the Peoples Republic of China,Articles of Association and the Rules of Procedure of the General Meetings of Shareholders,to ensure that shareholders,especially minority shareholders,can fully exercise their rights.The Company notifies all registered shareholders of the matters to be c

117、onsidered at the meeting and the date and place of the meeting by issuing a written notice prior to the convening of the meeting.The shareholders(including the shareholders agents)exercise their voting rights for the number of voting shares they represent and are entitled to one vote for each share.

118、During the reporting period,Luxshare Precision held 2 general meetings of shareholders,deliberated and passed the Motion on Formulating the Measures for Assessing the Implementation of Stock Option Incentive Plan 2021,the 2020 Annual Report and Summary,the 2020 Annual Work Report of the Board of Dir

119、ectors,and other systems and motions regarding stock option incentive,financial information disclosure and other corporate governance matters.In accordance with the Company Law of Peoples Republic of China and The Listing Rules of the Shenzhen Stock Exchange,Luxshare Precision has specified relevant

120、 regulations on related-party transactions in its Articles of Association to promote fair competition in the market.When the general meeting of shareholders deliberates matters about related-party transactions,related shareholders shall not participate in voting,and the number of voting shares repre

121、sented by them shall not be included in the total number of valid votes;the announcement on the resolution of the general meeting of shareholders shall make full disclosure on the voting of non-related shareholders.If the transaction amount between the Company and its related parties is greater than

122、 RMB 30 million and accounts for more than 5%of the absolute value of the audited net assets of the Company in the latest period,the Board of Directors shall first review the transaction and submit it to the general meeting of shareholders for review after approval.The avoidance and voting procedure

123、 of related shareholders is described as follows:During the reporting period,Luxshare Precision disclosed the Announcement on Estimation of Daily Related-Party Transactions in 2021 and the Announcement on Estimation of the Increase of Daily Related-Party Transactions in 2021 to ensure that all share

124、holders were informed of the Companys related-party transactions in a timely manner,enhance the transparency of transactions,and safeguard the interests of non-related shareholders Protection of Shareholders Rights and InterestsThe secretary of the Board of Directors or related shareholders or other

125、 shareholders shall apply for the avoidance of related shareholders and implement avoidance according to relevant regulations;Related shareholders shall not participate in the deliberation of matters regarding related-party transactions;When voting on matters about related-party transactions at the

126、general meeting of shareholders,the non-related shareholders attending the general meeting of shareholders shall vote in accordance with the provisions of the Articles of Association after the number of voting shares represented by related shareholders is deducted.15During the reporting period,Luxsh

127、are Precision held 2 meetings of shareholders2021 Sustainability ReportAbout this Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability GovernanceCare for Employees and Work TogetherGreen Production and Environmental ProtectionResponsible Procurement an

128、d Win-win CooperationCommunity Contribution and Original AspirationAppendixLuxshare Precision maintains positive communication with investors through regular email exchanges,online performance briefings,on-site exchanges and online inquiry platforms,so that investors can promptly and fully understan

129、d the Companys operations and developments,so as to safeguard the interests of small and medium investors.The senior managers of the Company have participated in investor communication meetings numerous times to update important information for public investors,answer questions that investors are co

130、ncerned about,and enhance the public understanding of the Companys business and the overall development of the industry.During the reporting period,we communicated with investors for a total of 931 times.On May 18,2021,Luxshare Precision held the 2020 annualshareholdersmeeting.Chairman Ms.Wang Laich

131、un attended the meeting,shared and communicated with shareholders regarding the Companys business development,overseas layout,automation platform establishment,M&A strategy,and R&D investment.At the meeting,friendly interaction and harmonious communication was conducted between the Company and inves

132、tors,which promoted the investors understanding of the Companys business and strategic layout.Communication with InvestorsLarge-scale investor communication 4 timesSmall-scale communication by phone,email,etc 375 timesInquiry and communication on easy IR 552 times Communication with Investors2020 an

133、nualshareholdersmeetingDuring the reporting period,we also received investor concerns on corporate sustainability issues,including labor management,climate change,business ethics and corporate governance.We have promptly followed up internal and external opinions and suggestions on sustainable devel

134、opment issues,and established an efficient and transparent communication mechanism.For investors opinions and inquiries,we will continue to improve the follow-up sustainable development work to build investors confidence in the Companys sustainable development.162021 Sustainability ReportAbout this

135、Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability GovernanceCare for Employees and Work TogetherGreen Production and Environmental ProtectionResponsible Procurement and Win-win CooperationCommunity Contribution and Original AspirationAppendixAn advo

136、cate of value-oriented performance culture,Luxshare Precision has put in place a benefit sharing and risk sharing mechanism between shareholders,management and core technology(business)cadres,and formulated an assessment system on a series of indicators including sustainable development performance

137、to ensure the realization of the Companys future development strategy and business goals.During the reporting period,we adopted a remuneration structure of“basic annual pay+long-term incentive”for directors,supervisors and senior managers,which effectively combined the interests of shareholders,the

138、Company and incentive recipients,and promoted the Companys sustainable,steady and rapid development.Assessment ManagementAssessment of the Exercise of Stock OptionsLuxshare Precision strictly follows the remuneration decision-making procedure.The Board of Directors and the Shareholders meeting ultim

139、ately approve and determine the remuneration of directors,supervisors and senior managers in accordance with the formulation,supervision and deliberation process.Remuneration SystemResolution Procedure Remuneration Decision-Making Procedure of Directors,Supervisors and Senior Managers Plan Formulati

140、onThe Compensation and Performance Appraisal Committee formulate the remuneration plans of directors,supervisors and senior managers.SupervisionThe Board of Supervisors and independent directors put forward opinions on the rationality and sustainability of remuneration plans as the regulatory body.D

141、eliberation and PassingImplementation after the deliberation and passing by the Board of Directors and the General Meeting of ShareholdersCorporate performance and individual performanceAchieving the Companys performance goals in the previous year and individual performance assessment grades of A+,A

142、 or B For directors,supervisors and senior managers who fail to meet the assessment conditions for exercise,the stock options granted but not authorized to be exercised shall not be exercised and shall be withdrawn by the Company.If the individual performance is assessed as Grade B,the exercisable p

143、roportion is 70%,and the remaining 30%shall not be exercised and shall be withdrawn by the Company.Assessment indicatorsExercise conditionsStock option withdrawalThe remuneration of directors and senior executives during the reporting period is detailed in the Fifth point,Section Four of the 2021 An

144、nual Report.172021 Sustainability ReportAbout this Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability GovernanceCare for Employees and Work TogetherGreen Production and Environmental ProtectionResponsible Procurement and Win-win CooperationCommunity

145、Contribution and Original AspirationAppendixLuxshare Precision has continuously improved the internal control system,formulated relevant management systems and carried out risk identification regularly to ensure compliance and steady development of enterprise operation.During the reporting period,4

146、internal audits were carried out.According to the Enterprise Internal Control System,Luxshare Precision the Companys risk assessment and management process to ensure accurate identification of internal and external risks related to controlling objectives,and realizes effective control of risks throu

147、gh comprehensive application of risk avoidance,risk reduction,risk sharing and risk acceptance strategies.During the reporting period,the Company carried out risk identification and management in 2021,identified and assessed a series of risks,including climate change risk,and formulated coping strat

148、egies through qualitative and quantitative methods.Risk ManagementManagement ProcessStrategic RisksOperational risksCompliance RiskRisk ItemResponse MeasuresCorporate governance riskProduct competitiveness riskContinuously improve the corporate system,standardize the Companys production and operatio

149、n,perfect the corporate governance structure,pay attention to the protection of shareholders rights and interests and investor relations management,and constantly enhance the level of corporate governance.Maintain strong component,module,Final Assembly Test&Pack(FATP)vertical integration and collabo

150、rative engagement capabilities,accelerate the application of intelligent manufacturing and big data operation and management platform.Continue to actively invest in the development of new technology and new products,introduce and cultivate new technology and new product development personnel,improve

151、 research and development capacity.Establish a total quality management process,continuously promote an intelligent testing and intelligent quality management system,improve the quality management level at all stages,including supplier management.Implement preventive measures against COVID-19,expand

152、 and set up production bases at home and abroad,and improve production stability.Sign the letter of commitment of science based target(SBTi)of 1.5,and formulate short-,medium-and long-term carbon reduction goals and action plans.Improve the labor management system,set up trade unions in each product

153、ion base,and actively maintain good communication with employees through multiple channels.Set up the Disciplinary Committee led by the chairman,implement business conduct compliance management,and conduct a regular internal audits of business ethics.Establish the intellectual property management sy

154、stem,investigate and confirm other companies intellectual property at the appropriate time of design and development.New technology risk and new product development Business ethics riskIntellectual property management and protection riskPandemic risk Climate change riskLabor relations riskProduct qu

155、ality riskRisk Type18Risk Identification and Response Measures2021 Sustainability ReportAbout this Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability GovernanceCare for Employees and Work TogetherGreen Production and Environmental ProtectionResponsib

156、le Procurement and Win-win CooperationCommunity Contribution and Original AspirationAppendixThe Chairman and General Manager of the Company directly leads the work of the Discipline Committee.Under the Discipline Committee is the Internal Audit Department which is an internal independent audit body,

157、and forms regular supervision over the internal control of the day-to-day operations of the Company.Supported by the internal audit system featuring“specialized responsibility,comprehensive coverage,focus on key points”,we conducted an independent review on the establishment and implementation of th

158、e Companys internal control system on the basis of internal control self-evaluation of various departments,put forward rectification suggestions and urge rectification on problems found in a timely manner.Internal ControlLuxshare Precision is committed to establishing a standardized,transparent and

159、healthy enterprise development model,and adopts systematic and effective compliance management for procurement,production,sales and other key operation links to ensure the implementation of corporate governance requirements.Compliance ManagementThe Companys internal audit covers all business links i

160、n the Companys business activities,concerning not only research and development,procurement,sales and other management aspects,but also organizational structure,sustainable development,business ethics and other non-business aspects.In response to business changes,the Company will further carry out s

161、pecial audits on fraud complaints,related-party transactions,contracts and other high-risk areas and issues on a regular and irregular basis and conduct targeted preventive management for sensitive positions and key areas.Internal AuditStrictly standardize procurement contracts to reduce legal and c

162、ommercial risksImprove social responsibility management of suppliers to ensure supply chain stabilityRegularly check and evaluate weak links in the procurement process,and take effective control measures to ensure that material procurement meets the needs of production and operation of the enterpris

163、e Strictly implement relevant quality control standards to meet customer requirementsImplement quality supervision from product development to production execution,effectively ensure the production of high-quality products,avoid major product quality and violation risks Establish a well-developed sa

164、les and payment management systemDevelop standard operating procedures to regulate sales activities and prevent sales risksProvide compliance risk related training to the sales staff to improve compliance awarenessProcurement19ProductionSalesCompliance Management Procedure2021 Sustainability ReportA

165、bout this Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability GovernanceCare for Employees and Work TogetherGreen Production and Environmental ProtectionResponsible Procurement and Win-win CooperationCommunity Contribution and Original AspirationAppen

166、dixThe red line of business ethics is always the criterion of enterprise operation and development.Luxshare Precision continues to strengthen intellectual property rights protection,guide and regulate the commercial acts of employees,managers and partners through system improvement,management improv

167、ement and honesty culture development,and develops a corporate culture of“integrity and honesty,openness and fairness,reliable compliance,incorruptibility and self-discipline”.Luxshare Precision adheres to the business philosophy of integrity and follows the customer and operation local laws and reg

168、ulations.,Luxshare has formulated a set of rules including the Employee Handbook,Code of Ethical Operating Procedures,Employee Incorruptibility Management System,and Procurement Business Ethics Management System in accordance with the Global Code of Business Conduct and Ethics,and Interim Provisions

169、 on Prohibition of Commercial Bribery.With a focus on such key aspects as anti-bribery,anti-fraud,anti-money laundering,conflict of interest and unfair competition,comprehensively regulate the commercial acts of employees,suppliers and other partners,and create an open and fair business environment.

170、Furthermore,we work actively to create a fair and just business environment,and to ensure that our business ethics policy can be effectively publicized throughout the Company and among partners,the Global Code of Business Conduct and Ethics has been incorporated into the quarterly employee training

171、and assessment.The training and assessment results are linked with the employees year-end assessment and directly affect their remuneration and promotion,which helps develop the employees deep-rooted idea of anti-unfair competition and business ethics.Business EthicsIntegrity Management202021 Sustai

172、nability ReportAbout this Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability GovernanceCare for Employees and Work TogetherGreen Production and Environmental ProtectionResponsible Procurement and Win-win CooperationCommunity Contribution and Original

173、 AspirationAppendixThe Discipline Committee is under the Board of Directors and assigned with independent investigation management authority.Ms.Wang Laichun,the Chairman and General Manager of Luxshare Precision,works as the top leader of the Discipline Committee.She listens to the relevant reports

174、on a regular basis to ensure that the business ethics management requirements are comprehensively implemented in the Company.The Discipline Committee coordinates the subordinate working groups,supervises and accepts the complaints and reports concerning violations of laws and regulations,violations

175、of professional ethics and acts that damage the interests of the Company related to the staff or units of Luxshare Precision in accordance with laws and regulations and relevant internal rules and regulations.According to the requirements of the Board of Directors,Discipline Committee and business e

176、thics development and anti-corruption work,Luxshare Precision conduct a business ethics audits every year.Through the leadership of the Disciplinary Committee,each factory actively participates in local self-audit,and online and offline interviews with internal and external employees.We audited the

177、establishment and execution of internal control systems,the implementation of risk management and responsibility for case investigation and prevention,sensitive links of important posts,relative avoidance system for key posts,responsibility fulfillment of functional departments,and advancement of an

178、ti-corruption training in all factories and operation locations at home and abroad.During the reporting period,we conducted a specialized anti-corruption internal audit.Attaching high importance to integrity culture development,Luxshare Precision requires all employees and suppliers to sign the anti

179、-corruption statement,and carries out training and assessment on a regular basis to enhance the incorruption awareness and create a cultural atmosphere of“integrity maintenance,incorruption promotion and corruption punishment”.At the end of the reporting period,the signing rate of the anti-corruptio

180、n statemen by the employees and suppliers of Luxshare Precision was shown as below:Business Ethics Governance StructureBusiness Ethics AuditIntegrity Culture DevelopmentDuring the reporting period,we provided online and offline business ethics training of all directors,executives,employees(including

181、 irregular employees and temporary employees),suppliers and contractors of the Company.The training contents concerned the organizational framework of the Discipline Committee,interpretation of factual cases of violation of incorruption commitment,content specification of anti-corruption and incorru

182、ption acts,filling and declaration of voluntary declaration,methods and applications of anti-corruption whistleblowing.All employees:signed the Employees Letter of Commitment on Incorruption,and Employees Letter of Commitment on Code of Conduct.Suppliers:98.6%2 of the suppliers signed the Suppliers

183、Anti-corruption StatementBOLChairmanLegal GroupFinancial GroupPublicity GroupInspection/Supervision GroupDiscipline Committee Business Ethics Governance Structure 2 Some designated suppliers have signed the Letter of Commitment on Incorruption with their customers,and thus do not sign this Letter of

184、 Commitment with the Company.21Audit Group2021 Sustainability ReportAbout this Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability GovernanceCare for Employees and Work TogetherGreen Production and Environmental ProtectionResponsible Procurement and W

185、in-win CooperationCommunity Contribution and Original AspirationAppendixThis Anti-corruption Specialized Training is organized for the executives and procurement personnel.The Discipline Committee illustrated the internal corruption cases,popularized laws and regulations,corruption punishment criter

186、ia in the internal systems,promoted the Companys internal anti-corruption reward policy and whistleblowing methods.Realizing the importance of incorruption,complying with the relevant laws and rules of anti-corruption,and developing the consensus of“integrity maintenance,incorruption promotion and c

187、orruption punishment”.In May 2021,the Discipline Committee of Luxshare Precision introduced the cases of violation of business ethics concerning suppliers providing kickbacks for employees,false information for transaction deception,conducting violating operations,committing bribery and forming a pa

188、rtnership with the employees at the Supplier Conference through a combination of legal provision and actual cases,conveying the anti-corruption message and compliance awareness.Meanwhile,the Discipline Committee explained our specialized reporting channels and encouraged the whistleblowing of illega

189、l and discipline violations.Luxshare Precision(Kunshan)Organized Anti-corruption Specialized TrainingLuxshare Precision Held the Supplier Conference222021 Sustainability ReportAbout this Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability GovernanceCa

190、re for Employees and Work TogetherGreen Production and Environmental ProtectionResponsible Procurement and Win-win CooperationCommunity Contribution and Original AspirationAppendixLuxshare Precision precisely formulates and strictly abides by the Whistleblower and Whistle-blower Protection System,st

191、andardizes the reporting process,and strictly prevents and strictly controls violations of laws and disciplines that use positions and powers to seek illegitimate interests.We actively promote and encourage the whistleblowing of violations of rules,laws and regulations,all kinds of fraud and infring

192、ement act,and set up a variety of whistleblowing channels.Furthermore,we encourage employees and suppliers to take the initiative to fill in the declaration form and conduct self-examination and self-correction in a timely manner.Whistleblowing SystemWe undertake to respect the privacy of whistleblo

193、wers,keep their personal information strictly confidential,and strictly prohibit disclosure of their personal information or information provided by them.The investigation process will be kept confidential by the specialized auditors.The members of the Discipline Committee and investigators of the c

194、ase must sign the Statement of Discipline Committee and Case Investigation Personnel prior to case investigation to ensure that the specialized auditors do not have or are unlikely to have an interesting relationship with whistleblower,so as to prevent whistleblower/reported department from knowing

195、the relevant reporting source.Luxshare Precision does not tolerate any discrimination or retaliation against whistle-blowers and will provide them with the necessary legal assistance.If any employee finds any retaliation or retaliation attempt,he/she shall report it to the top supervisor and directo

196、r of the Discipline Committee of the factory.We will penalize the supervisor,manager and personnel who retaliated or attempted to retaliate,and the maximum penalty includes but is not limited to termination of employment.Whistle-blowing Channels 23We will investigate the reported cases in different

197、forms according to the severity and nature of the cases,whether external personnel,resources or criminal cases are involved;if the cases are found to be true,relevant personnel will be punished accordingly.In case of violation against the law,it will be handed over to judicial organs,and the whistle

198、-blower will be rewarded appropriately.During the reporting period,we received 4 internal complaint cases involving corruption,bribery,unfair trade,and imposed such penalties as dismissal,criticism and rectification,and issuing fines according to the severity of the cases.During the reporting period

199、,we were aware of no legal proceedings relating to commercial bribery against the Company or our employees.Address:311 Beihuan Road,Qingxi Town,Dongguan,Guangdong Province,ChinaTel:WeChat:QQ:3413207068Email:justiceluxshare-During the reporting period,we received 4 internal co

200、mplaint cases involving corruption2021 Sustainability ReportAbout this Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability GovernanceCare for Employees and Work TogetherGreen Production and Environmental ProtectionResponsible Procurement and Win-win C

201、ooperationCommunity Contribution and Original AspirationAppendixAnti-unfair Competition Intellectual Property Right Protection Luxshare Precision strictly abides by the Advertising Law of the Peoples Republic of China,the Anti-unfair Competition Law of the Peoples Republic of China and Provisions on

202、 the Prohibition of Acts Infringing on Trade Secrets and anti-monopoly related laws and regulations in the countries or regions of business.The Moral Standard Operating Procedure,and other system documents specify that illegal means shall not be used to competitors trade secrets or other confidentia

203、l information,illegal intrusion,theft,wiretapping,bribery and stealing,prohibit the publication of false or misleading advertising information,conspire with competitors to set prices to disrupt market order and other illegal acts.Luxshare Precision strictly abides by intellectual property laws and r

204、egulations,respects the intellectual property rights and interests of all parties,continuously strengthens the intellectual property management of the enterprise,improves the intellectual property awareness of employees and managers,so as to ensures that trademarks,patents,copyrights and other intel

205、lectual property rights of the Company and individuals are not infringed upon during operation.We have formulated such internal management systems as the Intellectual Property Management Manual,Intellectual Property Management Control Procedure and Measures for Risk Management of Intellectual Proper

206、ty,which has laid a solid foundation for the standardized management of the Companys intellectual property system.Furthermore,we strictly protect our intellectual property rights through market patent investigation,internal risk investigation and other forms.During the reporting period,there were 17

207、 cases of cracking down on counterfeiting,invalidation and trademark objection,and no intellectual property lawsuit claim was filed.242021 Sustainability ReportAbout this Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability GovernanceCare for Employees

208、 and Work TogetherGreen Production and Environmental ProtectionResponsible Procurement and Win-win CooperationCommunity Contribution and Original AspirationAppendixQuality management is the premise for corporate survival and development,the focus of customer attention,and the lifeline of market deve

209、lopment.As a manufacturer specializing in the R&D,production and sales of components,modules and finished products,Luxshare Precision adheres to the customer-centered quality management mode,fully implements intelligent quality management,and provides customers with high-quality products.We adhere t

210、o the quality management policy of“customer first,integrity management,scientific management and excellence”,attach importance to product quality in our work,encourage employees to grow into Luxshare members with a craftsmanship spirit,and strive to build a high-quality company.In strict accordance

211、with the Quality Law of the Peoples Republic of China and the laws and regulations of the operation locations,Luxshare Precision implements standardized management in line with the requirements of the international quality management system,obtains external certificates,advances continuous internal

212、corporate improvement,and constantly enhances the internal quality management level and product quality of the Company.During the reporting period,Luxshare Precision was certified by IS0 9001 Quality Management System and ISO 17025 Laboratory Management System.Our main production bases were also cer

213、tified by IS0 9001 Quality Management System,and further certified by IATF 16949 Quality Management System Standard for the Automotive Industry and ISO 13485 Medical devices Quality Management Systems according to customers and our own management needs.The main production bases of the Company have s

214、et quantitative quality management objectives in line with the production characteristics and requirements in terms of material feeding,sample inspection,finished product inspection and supplier audit,and have implemented the quality objectives to the direct responsible persons of the relevant proce

215、sses and established a quality objective management system linked to the performance of each responsible person.The Quality Department of the Company is responsible for regularly carrying out quality insoections and supervising the achievement of quality management objectives,analyzing the completio

216、n of annual objectives,and summarizing and disseminating excellent quality management practices.During the reporting period,the Company also developed and applied the modular quality data management system to achieve the quality management objective of“zero major quality incidents”.In 2022,we plan t

217、o develop the Quality Points Evaluation System and promote the active participation of all production bases of the Company,establish evaluation criteria and audit lists of key quality management processes,and continue to promote excellent internal quality management practices Quality ManagementQuali

218、ty Management SystemQuality Objective Management252021 Sustainability ReportAbout this Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability GovernanceCare for Employees and Work TogetherGreen Production and Environmental ProtectionResponsible Procureme

219、nt and Win-win CooperationCommunity Contribution and Original AspirationAppendixCompared with the traditional quality inspection method through manual inspection,the intelligent quality management mode uses scientific methods to control the production of defective products and automatically stops wh

220、en defective products are produced,and will gradually replace the traditional quality inspection method.We adopt automatic production,automatic inspection,intelligent quality management mode,robots,visual inspection systems and other advanced technologies to promptly intercept defective products and

221、 improve product yield.Intelligent Quality ManagementPID Intelligent Control Plan Intelligent Project Quality Control ProcessFMEA/NUDD/PMP etc.SOP/IPQC Checklist/PID coefficientsSPC Real-Time Monitoring/PID Automatic ControlEquipment Shutdown/Clearing Abnormality Causes/Automatic Production ControlW

222、arehousing/Cabling/DeliveryAbnormality26FMEA:Failure Mode Effect AnalysisNUDD:New,Unique,Difficult,DifferentPMP:Project Management ProgramSOP:Standard Operating ProcedureIPQC:Input Process Quality ControlWe use scientific and intelligent methods to control the production of defective products.Based

223、on the concept of edge computing to implement Proportional Integral Differential(PID)intelligent control scheme,we optimize the general quality control process,achieve quality control process management of intelligent projects,and improve product excellent rate.Take cable production as an example.We

224、 add PID automatic control modules at the source of cable production,conduct edge computing on scale coefficient,differential coefficient and integral coefficient of big data,so as to control core indicators of cable quality control(outer diameter size,insulation thickness,concentricity,capacitance

225、value,characteristic impedance,and other parameters),and automatically adjust process parameters.Furthermore,statistical process control(SPC)tools are used for real-time monitoring and early warning.PID automatically starts and stops depending on SPC OOC rules,so as to reduce production waste caused

226、 by system shock.2021 Sustainability ReportAbout this Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability GovernanceCare for Employees and Work TogetherGreen Production and Environmental ProtectionResponsible Procurement and Win-win CooperationCommuni

227、ty Contribution and Original AspirationAppendixWe understand that the capability improvement of internal operation staff and suppliers is the key to quality management,providing quality management training to employees.Meanwhile,the Company adopted the triple management method of“continuous improvem

228、ent,effective interception and system prevention”to continuously improve the ability of supplier quality management.Internal and External EmpowermentIn response to the Chinas call of Quality Month over the years,Luxshare Precision has continuously unfolded the Quality Control Month and Quality Month

229、 activities in the forms of prize competition,knowledge competition,quality essay,trap test,quality debate competition and operational skill competition.Employees are encouraged to participate in these activities to enhance their quality awareness,stimulate their quality innovation vitality and impr

230、ove their level of standardization.Quality Control Month and Quality Month Activities In order to improve the quality awareness of all employees,the Company has further offered the Quality Knowledge Class to publicize quality awareness and share quality knowledge,and disseminate easy-to-understand a

231、rticles on the official account.In 2021,a total of 9 issues of content have been published.In 2021,9 issues of articles were released.In 2022,the Company plans to launch the all-round quality management training Star Engine Program and provide 15 quality tool courses to front-line employees.Meanwhil

232、e,the Company works to set typical examples and explore excellent cases among internal and external suppliers,so as to provide practices and methods that can be used to promote and achieve quality management goals.27The company organized employees to participate in quality management training for a

233、total of 127,725 hourscovering a total of 132,792 person-times2021 Sustainability ReportAbout this Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability GovernanceCare for Employees and Work TogetherGreen Production and Environmental ProtectionResponsib

234、le Procurement and Win-win CooperationCommunity Contribution and Original AspirationAppendixLuxshare Precision attaches great importance to the information security of customers,employees and the Company.Aiming for“zero major information security leaks,zero major information system failures and zero

235、 business continuity interruption incidents”,Luxshare Precision has continuously strengthened the establishment of an information security system.Information and Privacy SecurityIn strict accordance with the Data Security Law of the Peoples Republic of China,the Personal Data Protection Law of the P

236、eoples Republic of China,Requirements for Information Security Management System and other local laws and regulations of the operation locations,Luxshare Precision has established the Information Security Committee to actively promote the implementation and improvement of the information security ma

237、nagement system.About 60 internal systems and operating procedures,including Information Security Management Manual,Management Procedure of Information Security Monitoring,Management Procedure of Information Security Incidents,Network Security Management Procedure,Information System Emergency Plan a

238、nd Management Procedure of Information Security of Related Parties,have been formulated as the important basis for the operation of the Companys information security management system.During the reporting period,Luxshare Precision successfully passed the ISO 27001 Information Security Management Sys

239、tem re-audit.Information SecurityInformation Security SystemTo effectively identify and control the risks associated with information leakage,we have put in place the Asset Identification and Risk Control Procedure,Information System Emergency Plan and other management systems,so as to ensure correc

240、t,efficient and fast handling of information system emergencies,minimize the loss on business and management caused by emergencies,improve the level of safe and stable operation of the Companys information system.During the reporting period,Luxshare Precision had zero information leakage incidents.B

241、ased on our internal system and management process,we adopted effective control measures to protect the information security of the Company,employees and customers:Information Security Risk ManagementEstablish a management framework within the organization to initiate and control the establishment a

242、nd operation of information security Organization and personnel managementEvaluate and analyze system security requirements and implement security mechanisms corresponding to service security level requirements Development and maintenance managementEnsure that relevant personnel obtain appropriate a

243、ccess rights for their job responsibilities,develop a list of user access rights and regularly reviewNetwork and access managementPhysical environment managementUse physical isolation,access control system,video surveillance,and physical with security to prevent unauthorized activities from accessin

244、g,damaging,and interfering security zonesConduct sufficient information security awareness training for the Companys employees and external personnel,and define the information security responsibilities of employees at work Isolate and impose control access between network boundaries and security do

245、mains,monitor and manage network devices and network activities,and formulate network security policies and operation procedures Establish an independent development environment to ensure information security designed and implemented in the information system development life cycleEnsure the protect

246、ion of the surrounding environment for different levels of equipment rooms,including a stable power supply28Data Security Control Means2021 Sustainability ReportAbout this Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability GovernanceCare for Employee

247、s and Work TogetherGreen Production and Environmental ProtectionResponsible Procurement and Win-win CooperationCommunity Contribution and Original AspirationAppendixWe actively carry out information security-related training for employees to enhance their network security awareness and crisis handli

248、ng ability.During the reporting period,the Company provided 174,000 hours of training for employees on information security awareness,information security and ICT information security,with a total of 114,786 participants.Information security TrainingIn consideration of the business development needs

249、 of the Company,Luxcase Factory required all in-service personnel to participate in online training and assessment related to information security,covering information data transmission requirements,contraband control and use specifications and new product introduction(NPI)regional division.Meanwhil

250、e,offline information security training was provided for new employees and workshop employees to ensure zero loss and leakage of enterprise information.Luxcase Carried out Enterprise Information Security TrainingLuxshare Precision attaches great importance to the privacy security of customers and pa

251、rtners,and has put in place such privacy management methods as Trade Secret Management Procedure,Third Party Service Management Procedure,and Management Procedure of Information Security of Related Parties.Protection measures for highly sensitive data have been adopted,and its emphasized in the Empl

252、oyee Handbook and Employee Code of Conduct and regular assessments that employees shall not disclose the privacy and business information of customers,consultants,suppliers and other partners.Privacy ProtectionDefine the contents to be protected according to customer requirements or the Companys cla

253、ssification standards.The trade secrets generated by each unit shall be marked with the confidentiality label or stamped with the identification seal according to the determined confidentiality level and confidentiality period.Relevant confidential information obtained in the course of work shall be

254、 properly kept by the personnel involved,and shall not be taken to home or to public places by individuals or disclosed to the public.Confidential documents,records,disks,optical discs or other storage media should be placed in locked file cabinets,safes or other forms of insurance furniture when no

255、t in use,and special person should be designated to ensure key security.Computer application personnel should use a legitimate user name,password or passphrase,and such password or passphrase should not be disclosed to any irrelevant or unauthorized personnel.The installation,debugging and overhaul

256、of computer equipment involving enterprise secrets shall be undertaken by the professional and technical personnel of the Information Service Office,and other personnel shall not disassemble and overhaul the computer equipment.The organizing department shall strictly determine the attendance and non

257、-voting personnel of any confidential meeting.All parties providing various products or services to the Company that require physical or logical access to our information assets must sign a confidentiality agreement or confidentiality clauses.Provide training and assessment on privacy protection for

258、 employees.Privacy Protection Measures29Classified ManagementAsset ManagementAccess PermissionPersonnel Management2021 Sustainability ReportAbout this Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability GovernanceCare for Employees and Work TogetherGr

259、een Production and Environmental ProtectionResponsible Procurement and Win-win CooperationCommunity Contribution and Original AspirationAppendixIntelligent innovation is the key to the sustainable and high-quality development of Luxshare Precision.With the advancement of the Industry 4.0 era,the Com

260、pany continues to incentivize research and innovation in key areas such as sensors and high-speed networks,high-end manufacturing,cloud computing and big data to build an intelligent manufacturing system.Intelligent Manufacturing and InnovationIntelligent Manufacturing Strategy in the Industry 4.0Ev

261、erything and People ConnectedIndustry 4.0The Company advances its intelligent manufacturing planning in three stages,lean manufacturing,automated manufacturing and intelligent manufacturing:Intelligent ManufacturingSet up lean a production line suitable for main products oriented by production value

262、 stream to improve efficiency;Lean manufacturing20192020Adopt robot strategy to solve the problems of high labor cost and low system efficiency in labor-intensive industries;Automated manufacturing20202021Conduct intelligent application research and development centered on the development of new tec

263、hnology and lean production technology,based on information and digitalization,and big data resources.Intelligent manufacturing2021 to future30Flexible and Lean ManufacturingEverything is Data2021 Sustainability ReportAbout this Report Message from the ChairmanCompany ProfileSteady Operation and Eve

264、rgreen BusinessSustainability GovernanceCare for Employees and Work TogetherGreen Production and Environmental ProtectionResponsible Procurement and Win-win CooperationCommunity Contribution and Original AspirationAppendixTo encourage technological innovation,the Company has formulated the Company P

265、atent Incentive Measures and regularly publicized them to all employees.The Company has set up three categories of patent application prizes for invention,utility model and design patents and rewarded inventors who are successfully awarded patents.During the reporting period,the Company achieved fru

266、itful technological innovation,with an increase of 1,413 new valid patents and total of 3,295 valid patents.During the reporting period,Luxshare Precision and its subsidiaries won a number of technical innovation awards,including National Specialized,Lean,Characteristic and New Enterprise Little Gia

267、nt,Science and Technology Award of China Electronic Components Association,and High-tech Enterprise.More than 5 products,including B141E High-swing Low-latency Mobile Phone Data Cable and HW-13 65W Double-port Super-fast Charger,were granted the national or provincial excellent new product awards.In

268、novation IncentiveThe Company develops an intelligent cable manufacturing system,and intelligently controls product quality and logistics information through the data information management platform.Application of Intelligent Cable Manufacturing SystemThe system integrates people,machine and things

269、to create an overall IOT.In-telligent logistics is realized through the automated navigation vehicles(AGV)and the intelligent information flow is realized through the manufacturing execution sys-tem(MES)to achieve such functions as intelligent production scheduling,intelligent workshop logistics,int

270、elligent equipment management,intelligent personnel man-agement,and E reporting.The cable intelligent manufacturing sys-tem has integrated the online monitoring system and equipment process parameter control system,set up the abnormal alarm mechanism of forward/reverse inspection and automatic equip

271、ment parameter ad-justment and optimization mechanism;hence,the real-time online product de-tection and online abnormality monitoring and adjustment are realized from the two perspectives of product quality parameters and equipment process,and the process stability and product quality are ensured.Io

272、T managementQuality managementDiagram of IoT Management of the Cable Intelligent Manufacturing SystemDiagram of Quality Management of the Cable Intelligent Manufacturing SystemIncrease within the Reporting PeriodAt the End of the Reporting PeriodInvention Patents191437Patents for Utility Model1,0602

273、,516Design Patents162342Number of Intellectual Property Rights of the Company31with a increase of 1,413 new valid patentstotal of 3,295 valid patents2021 Sustainability Report2021 Sustainability ReportAbout this Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSu

274、stainability GovernanceCare for Employees and Work TogetherGreen Production and Environmental ProtectionResponsible Procurement and Win-win CooperationCommunity Contribution and Original AspirationAppendixWe always adhere to the bottom line of employees rights and interests,and strictly abide by dom

275、estic and foreign labor laws and regulations.To present,we have issued a number of systems and regulations to protect the legitimate rights and interests of employees.Protection of Rights and InterestsIn response to such international initiatives and standards as United Nations Universal Declaration

276、 of Human Rights,Core Conventions of the International Labor Organization,United Nations Guiding Principles on Business and Human Rights,Global Sullivan Principles and SA8000 Social Accountability Audit,we strictly abide by the Labor Law of the Peoples Republic of China,the Labor Contract Law of the

277、 Peoples Republic of China,the Employment Promotion Law of the Peoples Republic of China,Regulations on Employment Service and Employment Management,and other laws and regulations of the operating locations.We also follow the requirements of Responsible Business Alliance(RBA)Code of Conduct,value an

278、d respect the basic human rights of all Group employees at home and abroad,and committed to never infringing upon human rights.We have formulated a series of labor and human rights guarantee systems,including the Social Responsibility Management Manual,Employee Handbook,Recruitment Management Measur

279、es,Operating Procedure of Unforced Work,Operating Procedure of Child Labor and Minor Management,Overtime Management Measures,Management Procedure of Freedom of Association and Collective Bargaining,Operating Procedure of Discrimination and Harassment Prevention,Management Procedure of Female Employe

280、es Rights and Labor Protection,and Religious Belief Management Procedure.We strictly prohibit forced labor and child labor,guarantee employees freedom of job selection,ensure reasonable working hours and overtime compensation,establish the principle of equality at work and the principle of freedom o

281、f association and collective consultation,oppose all forms of discrimination and harassment,and create a diverse and inclusive working environment.Protection of Human RightsChild labor preventionWorking hoursOvertime compen-sationFormulated the Operating Procedure of Unforced Work to ensure that all

282、 work is voluntary;Its specified that human trafficking or the use of any form of slave,coerced,debt repayment,indentured or prison labor is prohibited.Formulated Employee Handbook,Overtime Management Measures,Operating Procedure of Unforced Work and other internal systems to prohibit forced overtim

283、e;Stipulate that all overtime work shall be voluntary and employees shall not be forced to participate in manufacturing or meetings or activities related during non-working hours;If the employee needs to work overtime temporarily,he/she shall go through the overtime application procedure stipulated

284、in the Employee Handbook and submit it to the relevant supervisor for approval before execution.The requirements for overtime/overtime allowance in the Employee Handbook are as followed;employees who work extra hours beyond normal working hours are considered working overtime,and the overtime paymen

285、t rules are as follows;(1)Overtime on working days:overtime wage per hour=hourly wage for normal working hours 150%;(2)Overtime on days off:overtime wage per hour=hourly wage for normal working hours 200%;(3)Overtime on statutory holidays:overtime wage per hour=hourly wage for normal working hours 3

286、00%;Key AspectsInternal Systems and MeasuresForced laborKey Aspects and Management Practices of Human Rights Protection 33Formulated Recruitment Management Measures,Operating Procedure of Child Labor and Minor Management,Student Intern Management Measures and other internal systems,and strictly proh

287、ibited the employment of child labor as specified by the laws of the operation locations;Man-machine control:In the recruitment stage and during daily inspection,manually check ID card,relevant certificate issued by the local public security authority and other documents to check and verify employee

288、 age;the personnel system is designed with a control module which will automatically give an underage warning when the ID number of a minor applicant is entered.2021 Sustainability ReportAbout this Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability G

289、overnanceCare for Employees and Work TogetherGreen Production and Environmental ProtectionResponsible Procurement and Win-win CooperationCommunity Contribution and Original AspirationAppendixWe are committed to creating a diverse and inclusive work environment,providing diversity and human rights po

290、licy training,and continuously building a diverse workforce.As of the end of the reporting period,Luxshare Precision had employed 228,152 employees.Number of male employees129,031Number of female employees99,121Total number of employees228,152Number of employees in Mainland ChinaNumber of employees

291、in Hong Kong,Macao and TaiwanNumber of overseas employees (excluding employees in Hong Kong,Macao and Taiwan)Total number of general employeesTotal number of employees in middle managementTotal number of employees in senior managementNumber of contractual employees at or below 29Number of contractua

292、l employees between 30 and 49Number of contractual employees at or above 50118,825108,383944contractual employees177,0771,33849,737221,6614,6561,83534Anti-discriminationFreedom of associationFormulated the Management Procedure of Freedom of Association and Collective Bargaining;as permitted by law,w

293、orkers have the right to make friends with others freely and are allowed to form and join(or prevent from joining)all kinds of employee organizations and carry out collective bargaining without prior approval;any unit or individual of the Company is prohibited from interfering,discriminating,retalia

294、ting or harassing such activities;Ensure that workers exercise their organization right in an environment free from violence,pressure,fear,intimidation and threats,and provide such facilities as may be appropriate for the formation of trade unions or other forms of employee organization so that they

295、 can carry out their duties promptly and effectively;Formulated the Operating Procedure of Discrimination and Harassment Prevention,Recruitment Management Methods,Management Procedure of Female Employees Rights and Labor Protection and other systems;be fair and just to all employees,and never commit

296、 any act of discrimination in employment,job assignment,wage,benefits,training opportunities,promotion,punishment,dismissal or retirement on the basis of race,age,gender,sexual orientation,ethnicity,geographic region,disability,religion,political affiliation,union membership,military status,national

297、ity,marital status,pregnancy status,medical conditions,social stratum,physical characteristics(height,weight,eyesight,place of birth).Key Aspects and Management Practices of Human Rights Protection Key AspectsInternal Systems and Measures2021 Sustainability ReportAbout this Report Message from the C

298、hairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability GovernanceCare for Employees and Work TogetherGreen Production and Environmental ProtectionResponsible Procurement and Win-win CooperationCommunity Contribution and Original AspirationAppendixIn compliance with the laws and

299、regulations of each operation location and the relevant requirements for the establishment of trade unions,all subsidiaries,including overseas factories,have established trade unions.Employees have the right to voluntarily join the trade unions and employee congresses of their choice,coordinate labo

300、r relations and safeguard the labor rights and interests of employees through equal consultation and a collective contract system.Employee CommunicationWe are committed to creating a respectful and democratic work atmosphere,and continue to enrich employee communication methods.We have set up a WeCh

301、at Official Account online communication platform,a suggestion box,an email address,a hotline and SMS,face-to-face communication and a labor union for employees.The HR Department is responsible for the investigation,communication,resolution and feedback of all complaints.Employee Communication Chann

302、elsTo provide more efficient information exchange and listening interaction channels for all employees of the Company,show the spiritual outlook and spread the culture of Luxshare employees,the Company has launched an online listening platform Star Community based on the concept of employer brand St

303、ar Factory.Conveying the idea that every Luxshare employee is a shining star in Star Factory,gathering the strengths to shine in the ocean of stars,its to be built into an employee eco-community characteristic of Luxshare Precision.Launched the Listening Platform Star Community to Listen to Employee

304、 ConcernsFour segments:Free Talk,Contribution,Vietnam,LandscapeStar Factory TalkDisplay all kinds of activities of Luxshare Precision employees,employees can share their life,emotions,interests and hobbies.Star Factory LifeRead the Companys quarterly magazinesVoice of LuxshareCultural propaganda vid

305、eo integration windowLuxshare VideoShare all kinds of breakthrough progress or awards related to the Companys internal business activities,and departments exchange business results,share business knowledge,and launch plans and projects.Star Discovery352021 Sustainability ReportAbout this Report Mess

306、age from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability GovernanceCare for Employees and Work TogetherGreen Production and Environmental ProtectionResponsible Procurement and Win-win CooperationCommunity Contribution and Original AspirationAppendixFurthermore,the Co

307、mpany regularly carries out employee seminars,and has established a visual information communication system to involve the employees in project decision-making,so that the employees can fully understand the goals and actual situation of the Company development.The employees are also encouraged to ex

308、press their opinions and suggestions which are actively adopted to improve employee satisfaction and stabilize the employee team.The Company holds an employee satisfaction survey every year to deeply understand and promptly respond to the needs of employees based on the survey results of employees o

309、n corporate culture,management style,working conditions and other matters.According to the actual production,the factories of operation locations will carry out an employee satisfaction survey,and the Human Resources Department of each factory will formulate and implement corresponding improvement a

310、ction plans according to the results of the satisfaction survey.The Company is committed to building an agile organization with high engagement.Based on the engagement driving model and factors,the Company carries out group-level surveys,reports and action plans to continuously improve employee enga

311、gement and enhance employee identification and loyalty to the Company.Employee Satisfaction and EngagementIn 2021,the Company had an overall employee satisfaction of 90.4%and some factories showed an overall employee satisfaction of 95.0%To better protect the employees privacy,the Company has establ

312、ished a mechanism to protect the complainants,and formulated internal management practices for employees inquiries and complaints,ensuring that the contents of inquiries and complaints are only known to the recipients and relevant personnel.It is strictly prohibited to disclose the personal informat

313、ion of the parties concerned and any form of retaliation.If the employees personal rights and interests or the Companys interests are damaged due to work errors or intentional information leakage,the employee will be severely punished according to the severity of the specific circumstances according

314、 to the Employee Handbook.Satisfaction SurveyAction Plan C-suite LeadersCorporate TeamsDepartment ManagementCorporate Management36Day-to-day WorkEmployee CareJob ContentsWork EnvironmentJob DutiesDormitoryEmployee BenefitsSupporting FacilitiesCanteenTeam-buildingEntertainment Life outside work 2021

315、Sustainability ReportAbout this Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability GovernanceCare for Employees and Work TogetherGreen Production and Environmental ProtectionResponsible Procurement and Win-win CooperationCommunity Contribution and Or

316、iginal AspirationAppendixTo enable the employees to better understand,recognize and agree with the corporate culture,the Company organizes various forms of differentiated publicity activities,so that the employees can gain a comprehensive,accurate and in-depth understanding of the Company,enhance th

317、e cohesion and centripetal force of the Company.The Company abides by Labor Law of the Peoples Republic of China,Labor Contract Law of the Peoples Republic of China,Provisions on Democratic Management of Enterprises and other laws and regulations,and issues relevant regulations.In case of any restru

318、cturing event,the Company will immediately make arrangements for the employees in accordance with its management process and regulations to protect the legitimate rights and interests of employees.During the reporting period,the Company had no shutdown,layoff or restructuring events.Corporate Cultur

319、e PublicityResponsible RestructuringLuxshare Precision East China Factory organized the activity of Finding the Shining Figures around you.Five“Shining Figures”with outstanding performance in ethics,core values,dedication,long-term service and craftsmanship spirit were selected each time to set up e

320、xamples and inspire the employees to work harder.Shining Figure SelectionAward Ceremony of Season I Shining Figures The Company has established an effective internal communication mechanism to promptly convey information to employees through all levels of management and Human Resources Department.Co

321、mmunication and DialogueImportant Steps of Responsible RestructuringMeasures of Luxshare Precision37Joint Decision-making on Restructuring PlanLayoff NegotiationLayoff Impact ReductionGuarantee of Fair Termination of EmploymentThe Company has issued the Management Procedure of Freedom of Association

322、 and Collective Bargaining,and Measures for the Administration of Employee Representative Election to specify and standardize the methods of employee representative election and participation in restructuring plan communication.The Company will negotiate with the employees in good faith in accordanc

323、e with the Management Procedure of Freedom of Association and Collective Bargaining,and shall not prevent all employees from engaging in association and collective bargaining through other lawful means.The Company strictly abides by the laws and regulations concerning severance pay in the countries

324、and regions where it operates.The Company will support the employees eligible to apply for subsidies from local government in the countries and regions where it operates,fulfill the obligations to the Company,and assist the employees to obtain reemployment training.The Company shall strictly abide b

325、y the relevant regulations on termination of employment in the countries or regions where it operates and set standards according to relevant laws and regulations.2021 Sustainability ReportAbout this Report Message from the ChairmanCompany ProfileSteady Operation and Evergreen BusinessSustainability

326、 GovernanceCare for Employees and Work TogetherGreen Production and Environmental ProtectionResponsible Procurement and Win-win CooperationCommunity Contribution and Original AspirationAppendixWe are committed to providing a healthy and safe working environment for our employees,continuously improvi

327、ng the Companys employee occupational health and safety management,and pursuing the goal of“zero work industry casualty incidents and zero occupational injuries”,so that our employees can work with peace of mind at the Company.Health and Safety The Company strictly complies with the laws and regulat

328、ions of the operation locations,such as The Work Safety Law of the Peoples Republic of China and the Occupational Disease Prevention Law of the Peoples Republic of China,and has established the Environment Health&Safety(EHS)Management Committee.The Company has further formulated the Control Procedur

329、e of Environmental Factor Identification and Assessment,Control Procedure of Laws and Regulations and Other Requirements,Control Procedure of Objective Indicators and Management Plans and other EHS management processes,and introduced a total of 36 work safety management standards,including Hot Work

330、Safety Management Standard and Chemical Management Standard.An EHS information management system has been put in place to monitor the occupational safety performance indicators and ensure the occupational safety and health of employees.As of the end of the reporting period,33 major production bases

331、at home and abroad had been certified by the ISO 45001 Occupation Health Safety Management System.Occupational SafetyLuxshare Precision has always adhered to the safety policy of“safety first,prevention foremost and comprehensive treatment”.In order to carry out various safety activities,enhance the

332、 level of safety production management,further implement safety production responsibilities,and consolidate the management responsibilities at all levels to ensure the healthy,stable,harmonious and orderly development,the Company has established the EHS Management Committee led by the directors.Such

333、 systems as Group EHS Management Committee Operation Supervision and Management System,BU(Business Unit)EHS Responsibility Letter,EHS Management Organization Setup and Personnel Allocation Specifications,and EHS Operation Monitoring and Control Procedure have been established.Moreover,an organizational structure led by the EHS Management Committee,executed by the work groups and responsible person