Appotronics issued the 2021 ESG Report

SHENZHEN,China,June 22,2022 -- Recently,Appotronics Corporation Limited ("Appotronics") issued the 2021 Environmental,Social and Governance (ESG) Report (English version),which disclosed Appotronics' practices and achievements in operation,environment,society and other areas of responsibilities,and became the first ESG report released to the public in the laser display industry. ESG report,as being able to present highlights in the whole process of Appotronics' promotion regarding the integration of ESG philosophy into corporate governance and business operation,is deemed as a reflection of a company's high quality operation.

2021 Environmental Social and Governance Report of Appotronics

In January 2022,the Shanghai Stock Exchange issued the Notice of Annual Report Work to Companies Listed on the STAR Market,specifying requirements for the disclosure of ESG information clearly,and encouraging companies listed on the STAR market to further disclose personalized ESG information in addition to the "Social Responsibility" section in their annual reports. However,up to now,only a few companies have been able to publish social responsibility or ESG reports separately.

Appotronics is one of the first STAR Market listed companies to proactively disclose,and also the first company in the laser display industry to disclose,the social responsibility report,which is represented by Appotronics' publication of a separate social responsibility report for two consecutive years since its listing on the STAR market in 2019. In 2021,Appotronics upgraded the ESG philosophy into one of its management strategies and actively practiced this philosophy,and has become one of the first STAR Market listed companies to disclose a separate ESG report.

Insisting on high-quality development

It is shown in the report that Appotronics has formed a diversified governance structure by continuously improving its governance,and established and maintained good investor relations through the IR department under the Board of Directors Office with risk internal control management and integrity culture creation strengthened. During the reporting period,Appotronics has won various rewards,such as the Golden Bull Science and Technology Innovation Award,the Best Board of Directors of Listed Company,and the Best Shareholder Relations Award.

Thanks to the management's persistence in enhancing Appotronics' long-term intrinsic value,Appotronics has achieved revenue and profit growth both despite challenges of full uncertainties in external environment in 2021. In FY 2021,Appotronics' revenue amounted to RMB 2.498 billion,up 28.19% on a year-on-year basis; net profit attributable to the parent company after deduction of non-recurring profit or loss amounted to RMB 124 million,up 208.46% on a year-on-year basis; and overall gross margin was 33.91%,with an increase of 5%.

Creating social value continuously

As an enterprise listed in the STAR market insisting on taking science and technology as the cornerstone of its development,Appotronics' technology innovation capability in 2021,of course,has drawn great attentions from the public. As mentioned in the report,Appotronics' R&D investment in 2021 reached RMB 240 million,an increase of 15.8% on year-on-year basis,and Appotronics' R&D personnel reached 456 persons,accounting for 29% of the total number of employees,of which 28.7% of them owned master's or doctor's degree,providing a solid talent base for Appotronics' technological innovation. In addition,Appotronics continued to strengthen its intellectual property barriers. As of December 31,2021,Appotronics has obtained 1,434 authorized patents worldwide cumulatively,with patents applied or authorized totaling 2,419 all over the world.

As a leading enterprise in the laser display industry,Appotronics promotes the industry development proactively,which is also reflected in this ESG report. In 2021,with focuses on the Leading Effect,Appotronics explored and enriched laser display application scenarios through cooperation with different partners,such as municipal governments,universities,and enterprises,especially active exploration of aviation display and vehicle display,which is expected to open a new trillion-dollar track for the laser display industry. Meanwhile,Appotronics also promotes the preparation and implementation of laser display industry standards and leads national key R&D projects,as to build a bigger and stronger laser display industry together with partners.

Excellent employees are crucial to building an outstanding company. With a view to Appotronics' long-term development,Appotronics granted 25.5 million restricted shares to more than 200 incentive recipients through two restricted share incentive plans in 2021,with the purpose to stimulate the enthusiasm,creativity and initiative of employees and help Appotronics' operation continue to improve.

In contributing to social welfare and repaying the society,Appotronics made contributions to the establishment of adolescent creative space which acts as a local service site for the young in Qianxi City,Guizhou Province by virtue of its own industry resources and advantages,as to help revitalize rural talents.

Achieving carbon peaking and carbon neutrality goals through green technology

Under the national trend of "carbon peaking" and "carbon neutrality",laser display,as an energy-efficient,energy-saving and environmental-friendly green technology,has attracted great attentions. It is shown in the report that,as of December 31,ALPD® laser projection solutions provided by Appotronics have helped cinema partners save a total of 338 million KWh power consumptions and reduce 148 million cubic meters of carbon dioxide emissions arising from power generation,resulting to the establishment of an industry model for energy conservation and emission reduction to achieve "carbon neutrality".

On the other hand,Appotronics improved production efficiency and processes by virtue of innovative production technologies to achieve low-carbon and green production. In 2021,for the plant of Appotronics in Bao'an District,Shenzhen to complete one product,the average water consumption and the average electricity consumption decreased by 33.33% and 28.61% on a year-on-year basis respectively.

Along with the consensus continuously achieved in the United Nations' Sustainable Development Goals,China has implemented a number of policies related to carbon peaking and carbon neutrality goals and the ESG philosophy is becoming more and more popular globally,which also test a company's ability to follow the trend in time,and respond to the concerns of stakeholders,so as to gain more attentions from international capital and society at large.

Mr. LI Yi,Chairman and CEO of Appotronics,said in his speech in the report that,Appotronics is deeply aware that a company,if excellent and capable of long-term development,is required to contribute business value on the one hand,and should actively assume its responsibilities as a corporate citizen to make contributions to the global sustainable development on the other. Therefore,Appotronics will continue to actively practice ESG philosophy to promote a sustainable and high-quality joint development among the enterprise,the society and the environment.

For Full Report,please check:

http://static.sse.com.cn/disclosure/listedinfo/announcement/c/new/2022-06-22/688007_20220622_6_CwUxopyi.pdf

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