Skyworth : 2021 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Environmental, Social and Governance Report 2021

Table of Contents

1. About Skyworth and business information 2

1.1. Our business 2

1.2. Our corporate philosophy 4

2. About this Report 5

2.1. Principle, period, and scope of the report 5

3. Letter to Stakeholders 6

4. Sustainability governance 7

5. Stakeholder engagement and materiality

assessment 8

5.1. Stakeholder engagement activities 8

5.2. Communication channels 9

5.3. Materiality assessment 10

6. Our operation and product quality 12

6.1. Supply chain management 12

6.2. Quality management system 13

6.3. Product responsibility 14

6.4. Intellectual property management 15

6.5. Awards and recognitions of Skyworth 16

7. Our environmental protection practices 17

7.1. Environmental strategies 17

7.2. Green workplace 18

• 7.3. Climate change and greenhouse

  gas emission 19

• 7.4. Water consumption and wastewater

  management 23

7.5.

Waste management 24

8. Our employees and their development 27

8.1.

Employee management 27

8.2. Healthy and safe working environment 30

8.3. Training and development 31

8.4. Anti-corruption 33

9. Our social responsibility 33

10. Looking forward 34

11. ESG Guide content index 34

1. ABOUT SKYWORTH AND BUSINESS INFORMATION

1.1. Our business

The Group, comprising Skyworth Group Limited (the "Company") and its subsidiaries (the "Group", "Skyworth", "we" or "us" ), is principally engaged in the manufacture and sales of smart TV systems, home access systems, smart white appliances, intelligent manufacturing, internet value-added services, property development, property holding, photovoltaic products, modern services and trading of other products.

The Group was found in 1988 and has two listed companies known as Skyworth Group Limited (stock code: 00751.HK), Skyworth Digital Co., Ltd. (stock code: 000810.SZ). With more than 34,000 employees and 19 national high-tech enterprises, Skyworth's headquarter is located at Shenzhen High-tech Industrial Park. The Group, along with the State-owned Enterprise Technology Center and the State Industrial Design Center, worked with local governments to develop a technology laboratory. The Group's technology research, manufacturing and global marketing agencies are located at both China and abroad. In light of technology advancement and versatile market environment, we have initiated a strategic direction as known as "1335 strategy".

1 Goal

Achieve a revenue of 100 billion yuan

3 Key Strategies

• - operation smartisation;

• - refinement; and

• - internationalisation.

3 Bases

• - Shenzhen headquarter base;

• - Pearl River Delta smart home appliances manufacturing base; and

• - Yangtze River Delta Intelligent Household Appliance Manufacturing Base.

5 Business segments

• - Multimedia business;

• - Smart systems technology business;

• - Smart appliances business;

• - New energy business; and

• - Modern services business.

Skyworth has become a leading enterprise in smart appliances and information technology with advanced technology, standardised corporate governance, efficient operation, strict supervision, incentives and global competitiveness. The Group's TV products, digital set-top boxes and other products have significant market shares in Europe, South America, the Middle East and Southeast Asia, reflecting its global presence. By facilitating renewable energy development, the Group has provided solar business among several China cities.

Skyworth Photovoltaics, a comprehensive new energy enterprise integrating development, design, construction, intelligent operation and maintenance and professional consulting services. The Group specialises in the design, construction, operation and maintenance, carbon trading and energy storage business of distributed residential rooftop and industrial and commercial enterprise rooftop power stations. The Group will strive to build a comprehensive energy full-process asset development, construction and operation platform to bring real and sustainable value to customers. The emission reduction target for new energy business is to increase the utilisation of solar energy and reduce the purchase of electricity from outside.

Business Highlights of Skyworth for the Financial Year 2021

34,073 staff

(as at 31 December 2021)

1.2. Our corporate philosophy

We envision to become a global leader in smart appliances and information technology. We strive to create added value for our stakeholders including employees, customers, suppliers, shareholders and investors, and the society while safeguarding the principles of "Technology leadership, quality first", "Management innovation, efficiency priority", "User first, service home" and "Employee-oriented, results sharing". On top of proactively improving its operational efficiency, product quality and financial performance, the Group invests in environmental management, talent development and community investment to maximise sustainability performance. The Group takes on the mission of "Dedicated to creating a better life for mankind" and follow the cultural philosophies of "Pioneering and innovating", "Striving", "Pursuing excellence", "Performance priority" and "Result share" and "Integrity".

Skyworth's Mission :

Dedicated to Creating a Better Life for Mankind