龙旗科技(603341):上海龙旗科技股份有限公司2023年环境、社会及公司治理报告（英文版）
原标题:龙旗科技:上海龙旗科技股份有限公司2023年环境、社会及公司治理报告（英文版） smart products technology enterprise. It is committed to consistently delivering high-quality services to leading global clients and creating greater value for society. Nanchang A Protector of An Honest and A Transmitter of A Practitioner of Customers' Trustworthy Issuer Public Welfare Green Benefits Value Development ? Longcheer's R&D investment in 2023 reached ? The company's independent directors ? The number of employees worldwide reached ? The company's total GHG emissions (scope 1 and accounted for scope 2) were equivalent to RMB million accounting for 33.33%. , a YoY increase. 82,192.86 1,687.7615 11,506 5% t CO e. 2 of the operating income. 6.21% ? The annual coverage rate of the training on ? The total training time for the entire staff business ethics reached 100% . reached hours throughout the ? The company realized qualification rate 290,194 100% ? As of December 31, a total of patents were 687 year. of pollutant discharge. granted worldwide. ? The number of major information security breaches of the year was ? The annual violation rate of the CSR red line by 0. ? The comprehensive utilization rate of the company's ? The one-time pass rate of external quality system suppliers was 0. general industrial solid wastes reached 90%. audits reached . 100% ? ISO27001-certified operation areas reached ? Achieve avoidance of conflict minerals 80%. 100% ? The annual pass rate of social responsibility audits ? The company conducted special environmental 15 use. by customers reached . protection training sessions, with a training pass 100% rate of 100%. ? The annual donated funds for public welfare programs reached RMB 536,600 . development competitiveness, to reduce operational risks, and to improve the satisfaction of stakeholders. The ESG process of operation and development, Longcheer took into full account influence factors in many aspects and carried Committee is responsible for the overall ESG strategy, resource guarantee and strategic planning of Longcheer, and out materiality evaluations, to continuously increase ESG management efficiency. is responsible for defining the ESG management plan and baseline with market development foresight. The ESG Materiality Evaluation Process Committee meets from time to time to discuss and make decisions on the company's sustainability topics. The ESG Committee is supervised and directed by the company's Board of Directors. Manufacturing, Procurement, and Operations, with the General Manager serving as the chairperson. To ensure the invited its management and employees, governmental agencies and regulators, investors, customers, suppliers, media efficient functioning of the ESG Committee, an ESG Committee Executive Group has also been established, responsible and social organizations to prioritize the topics through questionnaires. During the process, the company received 1,018
(Audit Committee) for approval before implementation. Off-plan audit projects shall be submitted to the Chairman (Audit Committee) for approval and then implemented by the Audit Department.Longcheer established a risk management and control system consisting of three lines of defense, including Business In 2023, the company made great progress in internal audit and internal control, successively issued the Internal Audit Management and Process Owner, Internal Control Department/Process Management Department, and Audit and System, Supervision System, Business Red-line Management Regulations, Internal Control Risk Identification Process, Supervision Department. Internal Control Evaluation Process, Internal Control Manual, and updated 16 implementation rules and group risk maps, continuously promoting risk identification in IFS, HR and MSM processes. To solve 95% of problems, ensure To promote and empower the To conduct an independent process compliance, and implement methodology for integrated assessment and cold deterrence To establish a solid barrier for the healthy operation of the company. In 2024, the company will complete the internal process accountability. management of high risks across clues. Longcheer has been committed to creating a transparent operation environment and building a clean and honest To ensure a just and fair investigation, Longcheer tries its best not to designate employees who have interest business ecosystem. Longcheer has become a member of the Trust and Integrity Enterprise Alliance since 2022, Ensuring Tax Transparency and Compliance Tax compliance is essential to maintain legal order, ensure tax fairness, enhance corporate credibility, manage risks, improve transparency, To continuously improve employees' tax compliance awareness and its tax management, Longcheer and safeguard the long-term stable development of enterprises. provided high-quality tax courses through the "Institute of Finance and Economics" platform, with topics covering the changes and analysis of the latest tax legislations and policies, tax risk Longcheer has an excellent performance in tax compliance and corporate credit management and has been rated as a Class A taxpayer management, compliance requirements, tax planning strategies and international tax issues. in tax credit rating for many consecutive years, demonstrating the company's excellent performances in tax compliance and quality Longcheer organized case studies, special lectures and practical operations and drills to enable declaration, as well as its high standards for financial management, tax transparency and social responsibility. participants to have a comprehensive grasp of the current tax environment, improving their abilities to solve complex tax problems in actual business. Strengthening Tax Compliance In 2023, the "Institute of Finance and Economics" and employees' platform provided attendance reached Longcheer established a permanent tax function, which covers the management of tax operations, tax planning, related transactions, tax compliance and tax risks, and is responsible for declaring and auditing the Group's taxes, improving the accuracy of declarations, tax-related courses person-times conducting tax-related statistics regularly, ensuring timely provision of data required for information disclosure, and developing and 5 600 implementing the Group's transfer pricing policy. This tax function is also responsible for carrying out policy study and training and studying changes in international tax policies, to ensure global compliance of business operations.In terms of the construction of institutional systems, processes and mechanisms, Longcheer formed over 20 management processes and documents, fully covering the declaration of various taxes and business planning management. For overseas tax management of newly established subsidiaries in Vietnam, Singapore and Japan, the company formulated the Overseas Tax Management System of Longcheer Group, which explicitly stipulates the duties of tax posts in overseas subsidiaries and tax management posts in Headquarters, ensuring The company's annual tax payment in 2023 was RMB million418.30 that overseas subsidiaries can operate in an efficient and compliant manner under the management of Group Headquarters. In terms of tax risk management, the company carried out the tax soundness inspection of core subsidiaries and formed the relevant tax soundness inspection reports in 2023. As the highest decision-making body of Longcheer's information security system, the Information Security Improving the Information Security System Management Committee coordinates and leads the company's information security management, including formulating overall strategies, policies and development plans for information security, making decisions on information security organization, institution setting and important personal scheduling, deliberating and approving So far, Longcheer has developed nearly thirty systems, including management measures, work specifications, annual targets, strategies and work plans, examining and approving the relevant investment, budget and system procedures and mechanisms, emergency plans, and management regulations and safety requirements for high- documents, processing major information security incidents and supervising related matters, and supporting and risk links, building a relatively perfect information security barrier. Longcheer reviews and optimizes these systems promoting the implementation of information security. based on changes in the internal and external environment and relevant policy updates at regular intervals, ensuring continuous improvement of information security management performance.The company's General Manager serves as the convener of the Information Security Management Committee and implements relevant decisions through the information security management working group, ensuring the effective operation of the system. In 2023, the company's Information Security Management Committee held 8 joint meetings In 2023, of the company's operational sites achieved ISO 27001 certification. on information security and adopted many important resolutions, including the annual "Information Security Month" 80% event, information security audit program for DHI customers in Nanchang, strategy for approval and blocking of phishing emails, management of department information security officers , etc.responding to abnormal behaviors or security threats. Enhancing the Risk Response Capability Information Security Management Mechanism Process In the context of information security risks caused by the wide application of new techniques and products, Longcheer built a perfect response mechanism, effectively controlling such risks. business continuity planning to ensure that all potential risks are properly managed.training on how to identify and handle potential security threats, such as phishing emails and social Compliance Checks engineering attacks. Ensure all operations comply with the applicable laws, regulations and industrial standards. Longcheer deploys and maintains advanced technical tools and systems, such as firewalls, data encryption Security Audit Process techniques and multi-factor authentication systems, to protect the company's network and data security. Carry out internal and external security audits at regular intervals to evaluate the effectiveness These technical safeguards can effectively prevent unauthorized access and data leakage.of existing security measures, and adjust and optimize security strategies based on the audit results. Audits can help detect vulnerabilities and strengthen security controls.Employee Training and Certification Longcheer implements a strict access control mechanism, including conducting user authentication, verifying Provide employees with necessary security training and certification procedures to ensure that user permissions, and adopting the Least Privilege Rule, thus reducing internal risks and threats.they have the capabilities to process daily security issues. Training contents include the latest security trends, technologies and strategies. The company organized information security exchanges with benchmarking enterprises in the industry to broaden security awareness. These guidelines elaborate the company's information security management policies and the horizons of information security managers through studies and discussions, ensuring the company's related principles and provide the specifications for 19 specific scenarios in combination with the daily working scenarios of management level is in line with the external level. In 2023, the company organized over 50 exchange and learning employees, such as computer use and email sending, to form a unified and effective standard for information security. activities. The company provided differentiated special training on information security, ensuring that all employees receive the The company attaches great importance to information security supervision and effectively protects the interests of training on information security: customers and the company. In 2023, the company encountered no information security incidents, and both the FPY of audits on customers' information security and "yellow zones" and the completion rate of periodic prototype reviews company's leading position in the industry. To maintain the vitality of innovation and encourage employees to be creative, Longcheer builds a complete innovation In terms of R&D team building, the company introduced more professionals in such key business areas as automotive mechanism and closely cooperates with scientific research institutions and universities to jointly promote technological electronics, phones, tablets and intelligent wear in 2023, improving the R&D team's professional ability. As of December progress and continuously produce high-quality innovation results, providing more value to customers. 31, 2023, Longcheer's R&D team had 3,295 members, including 2,357 members with bachelor's degrees or above, accounting for 71.53%. In combination with industrial characteristics and customer demands, the company establishes five R&D centers in Shanghai, Shenzhen, Huizhou, Nanchang and Hefei, and builds an R&D system and technological innovation mechanism covering phones, tablets, intelligent wear, AI PC，automotive electronics, AR/VR, smart home and other intelligent As of December 31, 2023, hardware products, driving the sustainable development of the company.Longcheer's R&D team had including accounting for Innovation Management and Innovation Ability members members with bachelor's degrees or above The company focuses on the development of leading technologies, constantly In 2023, Longcheer's R&D increases investment in technology R&D resources, and builds technical innovation investment reached RMB platforms. Adhering to independent innovation and intellectual property building, In terms of innovation incentives, the company formulated an innovation incentive system for R&D personnel and the company actively promotes the development of industry-leading technologies, continuously optimized it based on the Innovation Incentive Standards. In 2023, the company reviewed the technological 1,687.76 tackles challenges in industry technologies, and formulates and issues the Technical innovation results on a quarterly basis, declared 325 technological innovation results, and awarded 232 prizes throughout Innovation Management Process and Innovation Incentive System .In 2023, million the year, effectively stimulating the innovation vitality of R&D personnel.The company conducts training on patent information security for R&D personnel at regular intervals to enhance the awareness Hefei University of Technology, Anhui University, Shenzhen University, Shanghai University, Nanjing of the protection of technical secrets and establishes standardized patent application processes to prevent risks of technical University of Science and Technology, Nanjing University of Aeronautics and Astronautics, Jiangsu disclosure through self-inspections on information security and information security investigations of patent application cases. University, East China Jiaotong University, Wuhan University of Science and Technology and Taiyuan The company explicitly stipulates the requirements for intellectual property protection in the Purchase Agreement to ensure University of Technology. that the products or services provided by the supplier do not infringe on the intellectual property rights of others and that the supplier signs a Confidentiality Agreement to clarify the ownership of intellectual property rights and safeguard the rights and interests of the technology disclosing party.  |