Report Preparation Statement
Report Scope
This report is the fourth Environmental, Social, and Governance (ESG) report published by HGTECH Industrial Co., Ltd. (hereinafter referred to as "HGTECH," "the Company," or "we"). It covers HGTECH and its major subsidiaries. Unless otherwise specified, the scope is consistent with the consolidated financial statements of HGTECH's annual report (Stock Code: 000988).
Reporting Period
This report is an annual report covering the period from January 1, 2025, to December 31, 2025. Some text extends beyond this period to enhance the report's completeness.
Basis of Preparation
This report is prepared in accordance with the Shenzhen Stock Exchange's "Self-Regulatory Guidelines for Listed Companies No. 1 – Standardized Operation of Main Board Listed Companies (2025 Revision)," and also references the "Shenzhen Stock Exchange Listed Company Self-Regulatory Guidelines No. 17 – Sustainable Development Report (Trial)," "Shenzhen Stock Exchange Listed Company Self-Regulatory Guidelines No. 3 – Preparation of Sustainable Development Reports (2026 Revision)," T/CERDS2-2022 "Corporate ESG Disclosure Guidelines," and GRI Standards.
Data Description
The data and cases in this report are derived from the actual operational records or financial reports of HGTECH Industrial Co., Ltd. and its major subsidiaries.
Contact Information
HGTECH Industrial Co., Ltd. Board of Directors Office Tel: 027-87180126 Fax: 027-87180139 Email: 0988@hgtech.com.cn
You can obtain more information about HGTECH through the company's official website at https://www.hgtech.com.cn and the CNINFO website at http://www.cninfo.com.cn.
*In case of any discrepancy between the Chinese and English versions, the Chinese version shall prevail.
CONTENTS
Chairman's Message 07
01 About HGTECH
Company Overview 09 Corporate Culture and Philosophy 10 Materiality Identification 10 ESG Management Overview 11
02 Innovation
"Central Research Institute" as a Source of Innovation 16 Deep Integration into the "Artificial Intelligence" Wave 18 "Innovation Synergy" – Industry-Academia-Research Collaboration 24 "Management Innovation" Enhancing Product Quality 26 Protecting Intellectual Property Rights – A "Golden Brand" 27
03 Governance
Corporate Governance Structure 29 Internal Control and Risk Management 31 Information Disclosure and Standardized Operation 31 Investor Relations Management 32 Shareholder Returns 33 Stakeholder Communication 34 Compliance Management System 35 Data Security and Customer Information Protection 35 Anti-Bribery and Anti-Corruption 37 Anti-Unfair Competition 37
04 Our Partners
Supply Chain Security 39 Supporting High-Quality Development of SMEs 40 Customer Rights Protection 41
05 Our Environment
Environmental Management System 45 Addressing Climate Change 46 Environmental Protection Investment 52 Waste Management 52 Resource Utilization 54 Environmental Initiatives at Overseas Bases 56
06 Our Employees and Social Responsibility
Employee Rights and Benefits 58 Employee Development and Training 60 Employee Promotion and Motivation 62 Occupational Health and Safety 63 Practicing Social Responsibility 65
Key Performance Indicators 67 | Index of Alignment 70 | Feedback 71
Chairman's Message
[Image: HGTECH logo]
HGTECH Industrial Co., Ltd. Chairman Ma Xinqiang
HGTECH is based on the opening of the "15th Five-Year Plan," closely following the trend of practical applications of artificial intelligence, and is building a globally leading "sensing, transmission, perception, and application" full-stack AI capability enabler. It deeply integrates into national strategies and future industrial layouts, using technological power to respond to the calls of the times. The company adheres to the mission of "Innovation Connects a Better World," integrating ESG into corporate development, and striving to practice its responsibilities to society, the environment, and the future while achieving high-quality development.