300661SZSE

2025 Environmental, Social, and Corporate Governance Report

SG Micro Corp··50 pages

✨ AI Summary

This report details SGMICRO's 2025 ESG performance, highlighting its commitment to sustainable development and corporate responsibility. Key figures include R&D investment and employee training coverage. The company emphasizes green R&D, robust governance, and stakeholder communication to drive long-term value creation and positive societal impact.

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Message from the Chairman

The year 2025 was the one of challenges and opportunities. Amidst a complex and dynamic market, SGMICRO actively navigated these complexities while strategically capitalizing on emerging opportunities. We remain steadfast in our founding aspiration: to become a leading integrated analog IC enterprise, dedicated to enhancing lives through technological innovation. Technology is a pivotal force driving societal progress, and each advancement broadens human prospects and enriches possibilities. We firmly believe that our continuous pursuit of technological innovation and breakthroughs will guide our era toward a future that significantly benefits global well-being and the sustainable development of our planet.

Since our inception, we've focused on developing high-performance, high-quality Integrated Circuit (IC) products. This commitment stems from a sincere desire to protect our environment through innovation-driven reduction of energy consumption, and the wish to improve the quality of life for future generations. Driven by our pursuit of excellence, we continuously increase R&D investment, push the boundaries of technological innovation, and develop more efficient and energy-saving analog ICs. The company's production lines cover 38 categories and more than 6,800 products, which are already widely utilized in a broad range of markets, such as new energy vehicles, photovoltaic energy storage, intelligent manufacturing, and green household appliances, creating value for our customers while serving our common goal of energy conservation and protecting our environment.

We recognize climate change as the defining global challenge of our generation. In response, SGMICRO has proactively integrated carbon reduction into our core sustainability strategy. We are steadfastly driving forward our medium- to long-term goals: a 50% reduction in carbon emissions per million yuan of output by 2030, and a 90% reduction by 2050. These targets are underpinned by continuous initiatives to optimize our energy mix, enhance operational efficiency, and embed green development principles across all facets of our operations.

Believing that corporate growth and social progress are fundamentally interconnected, SGMICRO maintains a customer-centered approach to delivering high-quality, reliable products. This is supported by a comprehensive quality management system and responsive customer feedback mechanisms. Externally, we have raised environmental standards for our suppliers, reinforcing a joint commitment to building a sustainable and responsible supply chain. Internally, fostering a diverse, equitable, and inclusive workforce remains a priority. We consider a supportive workplace culture that values employee well-being and development crucial for strengthening cohesion and enhancing a sense of belonging across the company. Furthermore, SGMICRO actively participates in various social welfare events to raise public awareness of sustainable development and social responsibility.

We are committed to improving operational efficiency through lean management practices. By refining comprehensive aspects of our governance, including our corporate structure, sustainable framework, and ethical conduct, we enhance the effectiveness of risk and compliance management. Reflecting on 2025, SGMICRO achieved steady optimisation across various fronts, including financial strength, team efficiency, and resilience against risks, delivering robust overall performance.

Looking ahead, SGMICRO will adopt an even more responsible stance, collaborating with stakeholders to advance economic, social, and environmental sustainability. In the face of unforeseen challenges and environmental shifts, SGMICRO's team will continue to contribute with a strong sense of mission, working collaboratively to bring about positive change in the world.

Zhang Shilong

Chairman and CEO

About SGMICRO

SGMICRO specializes in the research, development, and sales of high-performance, high-quality analog integrated circuits, with the goal of becoming a leading comprehensive analog IC company. From the very beginning, the company established a core operating principle centered on customer needs, focusing on developing and producing highly reliable and consistent analog IC products through a process of continuous innovation. SGMICRO is fundamentally driven by an engineer-led culture.

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