On April 18, 2025, Sifang Optoelectronics Co., Ltd. (hereinafter referred to as Sifang Optoelectronics)Code: 688665. SH) has officially released the "2024 Environmental, Social and Corporate Governance (ESG) Report" (hereinafter referred to as the "Report"). The reporting system presents the innovative practices of Sifang Optoelectronics in the fields of environmental protection, social responsibility, and corporate governance (ESG)The effectiveness also demonstrates the responsibility of being a science and technology innovation enterprise in supporting high-quality economic and social development and addressing global challenges.

Deepen ESG strategy and build sustainable development competitiveness with a global perspective

After more than 20 years of development, Sifang Optoelectronics has become an important representative enterprise in the intelligent gas sensor and gas science instrument industry at home and abroad. The brands "Sifang Optoelectronics" and "CUBIC" have gradually gained recognition in the global market.

Dr. Xiong Youhui, Chairman of Sifang Optoelectronics, pointed out that in the current deep restructuring of the global industrial chain, Sifang Optoelectronics deeply understands that ESG is not only a "passport" to the international market, but also a strategic cornerstone for enterprises to build long-term core competitiveness. Unlike the evaluation system based solely on financial indicators, ESG emphasizes the social responsibility of enterprises as social citizens in the process of business development from the three dimensions of environment, society, and corporate governance. Enterprises need to form a more comprehensive framework and system for sustainable development management, forming a virtuous cycle system of bottom-up, self driven by each business unit, gradual improvement, and continuous iteration, and enhancing comprehensive competitiveness.

Based on a deep understanding of industry trends and stakeholder demands, the company innovatively proposes the ESG strategy "I-GROW Growth Pyramid", systematically sorting out five key substantive issues: R&D innovation driven, talent ecosystem construction, sustainable supply chain construction, green and low-carbon transformation, and customer value deepening. Through practical actions, the company demonstrates its determination to do a good job in ESG and injects new momentum into the sustainable development of the company.

Sifang Optoelectronics Innovation proposes ESG strategy "I-GROW Growth Pyramid"

Practicing Responsibility and Leading Green Development with Technology

As a firm practitioner of ESG philosophy, Sifang Optoelectronics integrates social responsibility into its corporate DNA, making multidimensional efforts in areas such as technological innovation, supply chain, customer service, quality management, and public welfare actions, and demonstrating responsibility through practical actions. In recent years, the company has continued to strengthen technological innovation, upgrade its research and development system, and embed the concept of circular economy into product design. In 2024, the proportion of R&D investment to operating income of the company was 12.96%, and a total of 233 special projects were obtained. Laser Raman spectroscopy technology has been selected for the "General Technology Catalog of Smart Chemical Industrial Parks". And by introducing postdoctoral research capabilities, improving intellectual property management, supporting continuous innovation and protection, and maintaining technological innovation. In 2025, the company was successfully selected as a "National Enterprise Technology Center".

Sifang Optoelectronics has been recognized as a national enterprise technology center

In terms of supply chain, Sifang Optoelectronics is committed to sustainable management of the supply chain, promoting the organic integration of business development and social responsibility. The company has formulated the "Four party Optoelectronics Supplier Sustainable Development Management Rules", covering multiple key links in the supply chain, conducting ESG ratings on over 100 suppliers, and 43% of core suppliers signing the "Sustainable Development Code of Conduct" to promote overall carbon reduction and green transformation of the entire supply chain.

Sifang Optoelectronics deeply understands that ensuring product quality and customer satisfaction is the foundation of the company's sustainable development. With customer satisfaction as the goal, we focus on creating value services throughout the product lifecycle, empowering production with digital technology, and providing high-quality products and services. At present, the company has become a supporting supplier for many Fortune 500 companies and top customers in the industry, with overseas revenue accounting for over 32.6% and a customer satisfaction rate of over 95% for the "four in one" service model.

Sifang Optoelectronics adheres to the social responsibility concept of "people-oriented, culture based", and has long been committed to the development of education and the inheritance of traditional Chinese culture. The company fulfills its corporate social responsibility by supporting higher education, establishing scholarships, promoting cultural relic protection, and supporting carbon sequestration and emission reduction.

Sifang Optoelectronics Long term Practice of Corporate Social Responsibility

In the tide of a century of changes and industrial transformation, Sifang Optoelectronics is using ESG as a strategic pivot to build a virtuous cycle of 'technological innovation commercial success social value'. With continuous technological innovation and responsibility, it interprets the logic of China's intelligent manufacturing climbing up the global value chain, making 'CUBIC' a symbol of global trust.